Long Answer Questions | Business Studies (BST) Class 12 - Commerce PDF Download

Q1: Explain briefly ‘transfers’ and ‘promotions’ as internal sources of recruitment.
Ans: Transfer: It means shifting of employees from one job position to other at the same level of authority. Only the working place is changed. Therefore, it refers to a horizontal movement of the workers. This procedure is usually followed when some employees are surplus in one department and there is shortage of similar type of employees in another department.
Promotion: It refers to shifting of employees from one job position to the other with a higher level of authority. Here, employees move in an upward direction within an organisational structure. There is also an increase in compensation or salary, e.g. promotion of a clerk to the post of an accountant. A post can be filled by sending an insufficient employees at some lower-position. It is known as recruitment by demotion.

Q2: Provide any four limitations of using internal sources of recruitment.
Ans: Limitations of using internal sources of recruitment are:

• Stops entry of new (young) blood: The main drawback of this source is that young, intelligent and technically sound candidates from outside do not get chance to enter the company. So, existing employee run the organisation with their outdated ideas.
• Employees become lethargic: Internal employees may lose the drive for proving their worth since they may feel automatic promotion by seniority and sure prospect. This feeling makes them lethargic and it affects their performance.
• Not suitable for a new enterprise: A new enterprise cannot use internal sources of recruitment. No organisation can fill all its vacancies from internal sources.
• Spirit of cooperation: Internal employees do not have to face the outside competition. Therefore, they do not put in the desired efforts for updating their knowledge, which is necessary for new jobs.

Q3: Explain in brief the various steps involved in the process of staffing.
Ans: Various steps in the process of staffing are as follows

• Estimating manpower requirements- It refers to finding out the number of persons or employees and type of employees needed in the organisation in near future. At the time of determining the number of persons required, the possibilities regarding internal promotions, retirements, resignations and dismissals,etc.
  • Work load analysis- Finding the number and type of employees required to perform various jobs.
  • Work force analysis- Analysing existing work force already occupying the job positions.
  • Comparison-The manager compares the two and find out the excess of work load over work force indicating under staffing, and thus fulfills the gap.
• Recruitment- It refers to the process of inducing the people to apply for the job in the organisation. After assessing the number and type of required employees, the manager tries to get a greater number of applicants for the job, so that the organisation can select better candidates.
• Selection- It refers to the choosing of most suitable candidate to fill the vacant job position. Selection is done through a process, which involves tests, interviews, etc. It is important to keep in mind that the ability of the applicant and the nature of work must match.
• Placement and orientation-Placement refers to join the post for which a person has been selected. After this, a brief presentation about the company is given and employee is introduced to his superiors, subordinates and colleagues and it refers to orientation.
• Training and development- In this step, training is imparted to the selected candidate, by which he/she can enhance his/her skills, knowledge, which increases their efficiency and effectiveness.
• Performance appraisal- It refers to evaluating the performance of employees against some standards which are known to employees in advance. To judge his capability his actual work performance is compared with the work assigned to them.
• Promotion and career planning- Promotions are an integral part of people’s career. It means people placed in positions of increased responsibility on the basis of their capability and it usually means more pay, responsibility and job satisfaction.
• Compensation- It refers to fixing the compensation of an employee for his contribution to the organisation. It includes pay, rewards and other incentives given to all the employees. It includes direct as well as indirect payments. It may be of two types:
  (a) Direct Financial Payments- It includes wages, salaries, incentives, commissions and bonuse
  (b) Indirect payments-It includes insurance, medical,vacations etc

Q4: A newly appointed Personnel Manager is of the view that there is no need for training the workers. Do you agree with this statement? Give reasons in support of your answer.
Ans: No, I do not agree with this statement. Proper training is required to the workers because of following reasons:

• Addressing Weaknesses: Most employees have some weaknesses in their workplace skills. A training program allows you to strengthen those skills that each employee needs to improve
• Systematic learning: Training is a systematic learning which improves knowledge and skills of employees. It helps in reducing the wastage of efforts and money.
• Higher profits: Training helps in increasing the efficiency and productivity of the workers which lead to high quality products and higher profits.
• More efficient: Training makes the employee more efficient and more technical. They can handle any machine easily. Thus, less prone to accidents.
• Increases Morale of employees: Training increases the satisfaction and morale of employees.
• Increased job satisfaction and morale among employees.
• Increases capacity to adopt new technologies and methods.
• Increases innovation in strategies and products.

Q5:  Explain any four external sources of recruitment. Which of these sources is ideal for a manufacturing organisation?
Ans: Recruitment means inducing or attracting more and more candidates to apply for vacant job positions in the organisation. In other words, recruitment means making available persons to fill different vacant posts in the organisation. Efforts are made in this process to ensure that more and more people submit applications so that selection becomes easy. External sources of recruitment mean to invite applications for filling up the vacancies from candidates outside the organisation.
Different external sources of recruitment are

• Casual callers: It is generally followed by the factories of manufacturing organisations to fill up vacancies at the labour level. In such cases, the organisation keeps the record of casual callers and present them at the time of requirement.
• Advertising: The most common and popular method of external recruitment is advertising, e.g. for the job of an accountant, the advertisement can be given in CA journal, for the lower rank it can be given in local newspapers and for the higher rank, it can be given in national level reputed newspapers. The advertisement may also be done through television.
• Placement agencies and management consultant: These agencies provide nation-wide service of matching demand and supply of workforce and invite the bio-data and record from various job seekers and send them to suitable clients. These agencies charge fees for providing such service.
• Labour contractors: They keep a close contact with labourers, and they supply manpower to the factory or manufacturing concerns. Through these contractors, workers are appointed in factories at very short notice. They act as a link between labourers and managers. Labour contractors is the ideal source for a manufacturing organisation. It is very much popular in road construction, building construction, and plantation industry. They keep close contact with labourers and supply manpower to manufacturing industries.