Case Studies - Staffing | Business Studies (BST) Class 12 - Commerce PDF Download

Clear all your Commerce doubts with EduRev Join for Free

Join for Free

Q1. “Our assets walk out of the door each evening, we have to make sure that they come back the next morning.” This statement relates to which function of management?  Explain the importance of this function.
Ans: The statement “Our assets walk out of the door each evening; we have to make sure that they come back the next morning” relates to the function of human resource management. This function is vital as it focuses on effectively managing an organisation's workforce. Human resource management involves several key responsibilities:

• Recruitment and Selection: Ensuring that the right people are hired to meet the organisation's needs.
• Training and Development: Providing employees with the necessary skills and knowledge to perform their roles effectively.
• Performance Management: Evaluating employee performance to align individual goals with the organisation's objectives.
• Employee Retention: Implementing strategies to keep talented employees engaged and motivated.

Overall, the importance of human resource management lies in its ability to enhance productivity and ensure that the organisation's goals are met through effective team management.

Q2. In a company, all recruiting, screening and training processes for data entry, etc. are done by one officer only.  Their competitor was attracting the most qualified employees.  As a result, this company had to choose from candidates who have soft skills and fewer qualifications.  Based on the above case, answer the following questions:
(i) What problem do you see the company is facing?
(ii) How can this problem be solved?
Ans: 
(i) The company is facing a significant recruitment problem. By relying solely on one officer for all recruiting, screening, and training, the company limits its ability to attract qualified candidates. This has resulted in a workforce primarily composed of individuals with soft skills but lacking necessary qualifications, especially compared to their competitors. To resolve this issue, the company can consider the following solutions:

• Delegation of Responsibilities: Distributing the recruitment and training tasks among multiple officers can enhance efficiency and broaden the talent pool.
• Improving Employer Branding: Enhancing the company's image as an attractive workplace will help draw in more qualified candidates.
• Utilising Recruitment Agencies: Partnering with recruitment agencies can provide access to a wider range of qualified applicants.
• Offering Competitive Benefits: Providing attractive incentives and benefits can also help in attracting top talent.

(ii) This company has failed to recognise the human resource approach, which considers human resources as the most important factor. They rely heavily on the personnel office for all activities, neglecting the significance of human resource management.

Q. 3. Zenith Ltd. is a highly reputed company, and many people want to join this company. The employees of this organization are very happy, and they discussed how they came in contact with this organization.
Ans: Zenith Ltd. is a highly reputed company, and many people want to join this organisation. The employees of this organisation are very happy, and they discussed how they came into contact with it. Aman mentioned that he was introduced by the current Sales Manager, Mr. John. Benu stated that he had applied through the newspaper and was appointed as an HR representative. Vaibhav noted that he was neither related to any employees of the organisation nor did he see any advertisements in the newspaper; nonetheless, he was directly contacted by HM Ahmedabad just as he was about to complete his MBA. The above discussion highlights an important function of management. The identified function is recruitment. The management function detailed in this context follows a specific process. This process involves identifying potential candidates, screening applications, and interviewing to ensure the best fit for the organisation.

(a) Staffing
(b) Recruitment is defined as the process of identifying prospective employees and encouraging them to apply for jobs within the organisation.

Q4. Q. 4. Blue Heavens Ltd. purchased a new hi-tech machine from Germany for manufacturing high quality auto components in a cost effective manner. But during the production process, the manager observed that the quality of production was not as per standard. On investigation it was found that there was lack of knowledge amongst the employees of suing these hi-tech machines. So, frequent visit of engineers was required form Germany. This resulted in high overhead charges. Suggest what can be done to develop the skills and abilities of employees for producing high quality products by using these hi-tech machines. Also state how the employees or the organization will benefit from your suggestion.
Ans: Training of employees is essential to improve their skills in operating hi-tech machines for producing high-quality auto components. This training will ensure that employees are well-equipped to handle the technology effectively, leading to enhanced production standards. Benefits to the organization and employees include:

• Avoidance of wastage of effort and money.
• Increased employee productivity.
• Preparation of future managers.
• Improved employee morale and reduced absenteeism.
• Effective responses to a rapidly changing environment.
• Enhanced skills and knowledge of individuals.
• Overall increase in individual performance.

Q5. Ms. Neeta recently completed her Post-Graduate Diploma in Human Resource Management.  A few months from now a large steel manufacturing company appointed her as its Human Resource Manager.  As of now, the company employs 800 persons and has an expansion plan in hand which may require another 200 persons for various types of additional requirements.  Ms. Neeta has been given complete charge of the company’s Human Resource Department.

(a) State any two functions she must be performing.

(b) What problems do you foresee in her job?  What steps is she going to take to perform her job efficiently?                                                                                (6 mark)
Ans. (a) Ms. Neeta must perform the following functions as a Human Resource Manager:

• Analysing jobs and collecting information to prepare job descriptions.
• Developing compensation and incentive plans.
• Since the company has an expansion plan requiring 200 more employees for various additional roles, Ms. Neeta will need to recruit and select individuals from outside the organization. She will do this by inviting candidates to apply through external recruitment sources such as advertisements, placement agencies, and employee recommendations.
• Ms. Neeta will arrange various types of training (e.g., apprenticeship training, vestibule training, etc.) for the new employees to enhance their efficiency.
• She will also handle workers’ grievances and complaints, maintain labour relations, and ensure the provision of social security and welfare for employees.

(b) Potential problems Ms. Neeta may encounter in her role include:

• Challenges in recruitment due to competition for skilled workers.
• Managing employee grievances effectively to maintain a positive work environment.
• Ensuring adequate training resources and programs are in place for new hires.

To perform her job efficiently, Ms. Neeta should:

• Implement a structured recruitment strategy to attract qualified candidates.
• Develop a comprehensive training program that meets the needs of the new employees.
• Establish clear communication channels for addressing employee concerns and feedback.

Q6. Name the methods of recruitment in the following cases:

1. A company gets applications on and off even without declaring any vacancy.  However, as and when the vacancy arises, the company makes use of such applications.
2. Casual vacancies of unskilled or semi-skilled jobs when there is a rush of order or when some permanent workers are absent.
3. Recruitment by which most of the senior positions of the industry as well as commerce are filled.                                                                        (3 marks)

Ans: The methods of recruitment include the following:

• Casual callers
• Direct recruitment
• Advertisement

Q7. Anuroop runs a law firm in Hyderabad.  His firm offers valuable financial and legal consultancy services to the clients.  Whenever the firm hires any new employees, on the first day of their joining, they are welcomed to the organization and are given details about hours of work, holiday requests, sickness procedure, dress code, lunch arrangements, introduced to the daily operations and key people in the workplace, etc.  They are also familiarized with the organistion’s policies and procedures, including complaints and dispute resolution, sexual harassment, emergency exits and evacuation procedure.

In the context of the above case:

1. Name the type of training which is being referred to in the above lines.
2. Identify and explain the human needs of the new employees that the being fulfilled by Anuroop through this training.

Ans: 

1. The type of training being referred to in the above lines is induction training. 

2. The various types of human needs of the new employees that are being fulfilled by Anuroop through induction training are outlined below:

• Basic Physiological Needs: This includes providing a safe and comfortable working environment.
• Safety / Security Needs: Employees are informed about emergency exits and evacuation procedures, ensuring their safety.
• Affiliation / Belonging Needs: New hires are introduced to their colleagues and the workplace culture, fostering a sense of belonging.

Q8. Srija runs an NGO under the name ‘Sarthak’ in Delhi.  The organization is engaged in offering waste paper recycling services to all kinds of institutions in the Delhi NCR region.  It also manufactures custom made paper stationery out of recycled paper on order for the interested institutions at a very competitive price.  The website of ‘Sarthak’ provides a link to a Careers site where in the people desirous of joining the NGO can use simple Job Search to find the right opportunity for themselves.  The NGO also keeps a database of unsolicited applicants in its office so that job seekers may be notified of future opportunities when they arise.

In context of the above case:

1. Identify the two sources of external recruitment being used by the NGO ‘Sarthak’ by quoting lines from the paragraph.
2. List any two values that Srija wants to communicate to the Society.

Ans: 1. The two sources of external recruitment being used by the NGO ‘Sarthak’ are as follows:

• Web Publishing: The NGO’s website provides a link to a Careers site where individuals can search for job opportunities.
• Casual Callers: The NGO maintains a database of unsolicited applicants to notify job seekers of future opportunities.

2. The two values that Srija wants to communicate to society are:

• Environmental Sustainability: Emphasising the importance of recycling and reducing waste.
• Responsibility: Encouraging individuals and institutions to take action for a better environment.

Q9. Prateek has started an advertising agency in Gurgoan.  One of the pages on his company’s website contains the following information: “Welcome to all the visitors of this page who are looking for an opportunity to make a career in the field of advertising.  The openings are available in the company at various levels, so don’t miss the chance.”  This page includes a link to provide further details about the vacancies available in terms of the desired qualifications, experience, personality characteristics and so on.  Through a continuous assessment of the number and types of human resources necessary for the performance of various jobs and the accomplishment of organizational objectives in relation to the number and type available, he gets the information on this page updated.

In the context of the above case:

1. Identify and explain the steps in the staffing process being carried out by Prateek by quoting lines from the paragraph.
2. Name the concept that relates to the details about the vacancies available in terms of the desired qualifications, experience, personality characteristics and so on.

Ans: 1. The two steps in the staffing process being carried out by Prateek are as follows:

• Estimating the Manpower Requirements: This involves assessing the number and types of human resources necessary for various jobs.
• Recruitment: This step is evident from the invitation to visitors seeking opportunities in the field of advertising.

2. The concept that relates to the details about the vacancies available in terms of the desired qualifications, experience, and personality characteristics is Job Descriptions.

Q10. Aakanksha, Nikita and Parishma are the owners of a handicraft unit in the urban area of Dibrugarh in Assam, which is involved in the manufacturing and marketing of Sital Pati, traditional mats and Jappi (the traditional headgear).

They decided to shift this manufacturing unit to a rural area to reduce the cost and provide job opportunities to the locals.

They followed the functional structure in this organization with a view to increasing managerial and operational efficiency.

They assessed and analysed the type and number of employees required, keeping in mind that they had to encourage the women and the people with special needs belonging to the rural area.

State the next three steps that they will have to undertake for obtaining a satisfied workforce for their handicraft unit.                                                                        (3 marks)

Ans: The next three steps in the process of staffing are outlined below:

• Recruitment: This is the process of searching for prospective employees and encouraging them to apply for jobs within the organisation.
• Selection: This involves choosing from the pool of applicants those who best meet the job requirements and the organisation's needs.
• Training and Development: This step ensures that employees are equipped with the necessary skills and knowledge to perform their jobs effectively.

Q11. A company, X Ltd., is setting up a new plant in India for manufacturing auto components.  India has a highly competitive and cost-effective production base in this sector.  X Ltd. is planning to capture about 40% of the market share in India and also export to the tune of at least $5 million in about 2 years of its planned operations.  Achieving these targets requires a highly trained and motivated workforce. You have been retained by the company to advise it in this matter.

(i) Which sources of recruitment should the company rely upon?

(ii) Which methods of training should the company initiate?                    (4 marks)

Ans: 

1. The company should rely on the following external sources of recruitment, as it is setting up a new plant and requires a large number of employees skilled in the latest technology. It needs to recruit technical, professional, and managerial personnel:

• Advertisement
• Management consultants
• Campus recruitment

2. To ensure a well-prepared workforce, the company should initiate the following methods of training:

• Apprenticeship training
• Vestibule training
• Internship

Q12. The quality of production is not up to standard. On investigation it was observed that most of the workers were not fully aware of proper operation of the machinery. What could be the way to improve the accuracy?
Ans: To improve the accuracy of production, it is essential to provide workers with appropriate training on the use of machinery. The most effective method in this case is apprenticeship training, which is an on-the-job training approach. Workers aspiring to enter skilled trades, such as plumbing, electrical work, or ironworking, are required to undergo apprenticeship training for a prescribed period, typically ranging from 2 to 5 years. During apprenticeship training, apprentices (trainees) work under the guidance of a master worker or an experienced trainer. This hands-on experience helps ensure they are fully aware of the proper operation of machinery and the best practices required in their specific roles.

Q13. The employers of ‘Food Darbar,’ a restaurant, are trained through a structured programme that provides training in each area within the restaurant.  The trainees learn the skills necessary for running each of the 12 workstations in the restaurant, from taking orders to the cooking area.  This enables the employees to gain a broader understanding of all parts of the business and how the restaurant functions as a whole.  The trainee gets fully involved in the department’s operations and also gets a chance to test her won aptitude and ability.  When employees are trained by this method, the organization finds it easier at the time of promotions, replacements or transfers.

In the context of the above case:

1. Name the type of training which ‘Food Darbar’ provides to its employees.
2. Distinguish between training and development on the basis of meaning, purpose and scope.

Ans: 1. The type of training that Food Darbar provides to its employees is job rotation. This method allows employees to experience various roles within the restaurant through on-the-job training. 

2. The differences between training and development are outlined below:

• Meaning: Training refers to the process of enhancing skills for a specific job, while development focuses on overall growth and future potential.
• Purpose: The purpose of training is to improve performance in a current role, whereas development aims to prepare employees for higher responsibilities.
• Scope: Training is typically more short-term and role-specific, while development involves a broader, long-term perspective on career growth.

Q14. Deeksha is the general manager of a firm offering Telemarketing services.  Telemarketing is a method of direct marketing in which a representative of the company solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.  Deeksha ensures that all the call centre representatives are well versed in the local languages so that they can interact effectively with the prospective buyers.  Moreover, the employees are provided training to improve upon their troubleshooting skills so that they do not spend too much time with every customer.  By acquiring these skills, the callers can add value to their message and also shorten the call durations, leading to increased customer satisfaction and profitability of the business.

As a part of the firm’s policy, Deeksha encourages women, persons from backward communities and persons with special abilities to assume responsible positions in the organization.

In the context of the above case:

1. Identify the type of communication barriers that Deeksha is able to overcome by ensuring that all the call centre representatives are well versed in the local languages.
2. What are the benefits of training employees to an organization?
3. List any two values that the firm wants to communicate to the society.

Ans: 1. Deeksha is able to overcome semantic barriers by ensuring that all the call centre representatives are well versed in the local languages. 

2. The benefits of training employees to an organization include:

• Improved efficiency in handling customer inquiries.
• Enhanced troubleshooting skills, reducing call duration and increasing customer satisfaction.

3. The two values that the firm wants to communicate to society are:

• Women empowerment
• Humanity

Q15. Bhuvan Ltd. is a highly reputable company.  The employees of this organization discussed how they came in contact with this organization.  Reena said she was introduced by the Purchase manager (Mr. John. Neetu said she applied through newspaper and was appointed as Finance manager).

Indu said she was directly called by the company from her IIM institute after completing her MBA.

1. Identify the different sources of recruitment.
2. Name the function of management discussed in the above para.

Ans: (i)

• Reena’s source: Recommendation from existing staff.
• Neetu’s source: Media advertising.
• Indu’s source: Campus recruitment.

(ii) The function discussed in the above paragraph is staffing.

Q16. Mr. Anil Garg is working as Managing Director of “CLS Packaging Limited”.  He is not in favour of selling waste material in the market.  Instead, he is planning to make himself new products of this material.  For this purpose, a new unit will have to be set up. Accordingly, he decided to establish this unit in an area where a large number of persons are unemployed, and so labour is available at a cheap rate.

In order to attract workers to this new unit, a special Remuneration Scheme was introduced.  As per this scheme, workers will get their remuneration on the basis of their work.  There will be two rates of wages: higher wage rate and lower wage rate.  A worker who will work up to a given standardized unit or beyond will be paid his/her remuneration at a higher rate.  On the other hand, a worker who will work less than the given standardized units will be paid his/her remuneration at a lower rate.

In order to operate this new unit, Mr. Garg established a separate ‘Waste Material Division’.  It consisted of four departments, such as, Purchase, sales, Production and Accounts.  The company required four managers to run these departments; of these, two managers were appointed from the existing business by way of promotion, while the other two were selected out of the waiting list maintained by the company.

1. Which form of organization structure is being adopted by the company?
2. Identify and give the meaning of the wage payment scheme adopted by the company to motivate the workers.
3. What methods of recruitment have been adopted by the company?
4. Identify these two values that Mr. Garg has been dedicating to the society by establishing this new unit.                                                                       (1 + 2 + 1 + 1)

Ans: 1. Divisional Organization Structure. 

2. Differential Wage System 

3. Recruitment Methods:

• Promotion from within the existing business
• Casual callers

4. Values Contributed to Society:

• Development of backward areas
• Increase in employment opportunities

Q17. Sahil, the director of a garments company, is planning to manufacture bags for the utilization of waste material from one of his garments units.  He decided that his manufacturing unit will be set up in a rural area of Orissa where people have very less job opportunities and labour is available at a very low rate.  He also thought of giving equal opportunities to men and women.  For this, he selected S. Chatterjee, Indrajeet Kaur, Aslam and Sarabjeet as heads of the Sales, Accounts, Purchase and Production departments.

1. Identify and state the next two steps that Sahil has to follow in the staffing process after selecting the above heads.
2. Also, identify two values which Sahil wants to communicate to the society by setting up this manufacturing unit.                                                           (5 marks)

Ans: 1. The next two steps that Sahil has to follow in the staffing process are:

• Placement and Orientation
• Training and Development

2. The values that Sahil wants to communicate to society by setting up this manufacturing unit are:

• Development of backward areas
• Providing job opportunities in rural areas
• Equality between men and women
• Optimum utilization of resources
• Secularism

Q18. The workers of ‘Gargya Ltd.’ are unable to work on new computerized machines imported by the company to fulfil the increased demand.  Therefore, the workers are seeking extra guidance from the supervisor, and the supervisor is overburdened with the frequent calls of workers.

Suggest how the supervisor, by increasing the skills and knowledge of workers, can make them handle their work independently.

Also, state any three benefits that the workers will derive by the decision of the supervisor.                                                                                                            (4 marks)

Ans: The supervisor can conduct training sessions to enhance the skills and knowledge of workers regarding the new computerized machines. This training can include hands-on practice, demonstrations, and the creation of a resource manual for reference. By doing so, workers will gain the confidence and competence needed to operate the machinery independently. Benefits that the workers will derive from this decision include:

• Increased efficiency and productivity while working on machines.
• Enhanced job satisfaction as they become more competent in their roles.
• Reduced dependency on supervisors, leading to more streamlined operations.

Q19. Anushka is doing a course in fashion designing form an institute of repute.  As a part of the course, she has been asked to take on-the-job training in an export house for a fortnight to gain an insight about various practical aspects related to designing.  Anushka, through the references from her senior, joins an export house owned by an upcoming designer, Nandita.

In the context of the above case:

1. Name and explain the type of training which Anushka has been asked to undertake.
2. Explain briefly any one method for providing off-the-job training.

Ans: 1. Internship training is the type of training that Anushka has been asked to undertake. This practical experience allows students to apply theoretical knowledge in a real-world setting, enhancing their skills and understanding of the industry. 

2. One method for providing off-the-job training is vestibule training. This approach involves training employees in a simulated environment that closely resembles the actual workplace. It is particularly effective for teaching specific skills and procedures without the pressures of the job environment.

Q20. Which source of external recruitment is ideal for a manufacturing organization? Why? (1 mark)
Ans: Advertisements are an ideal source of external recruitment for manufacturing organisations. They provide a wide choice for recruiting and selecting candidates, particularly for senior positions in industry and commerce. Furthermore, advertisements allow for comprehensive information about the organisation and the job to be communicated effectively.

Q21. Name the methods of training:

1. The trainee learns under the guidance of a master worker.
2. Trainees learn about the equipment they will be using, but training is conducted away from the actual work floor.
3. Trainees work in some factory or office to acquire practical knowledge and skills along with regular studies.                                                                                         (3 marks)

Ans: The methods of training are as follows:

• Apprenticeship training: This method involves the trainee learning under the guidance of a master worker.
• Vestibule training: In this approach, trainees learn about the equipment they will be using, but the training takes place away from the actual work floor.
• Internship training: Trainees work in a factory or office to acquire practical knowledge and skills while also engaging in regular studies.

Q22. A company is manufacturing paper plates and bowls.  It produces 1,00,000 plates and bowls each day.  Due to a local festival it got an urgent order for an extra 50,000 plates and bowls per day.

1. Name the source of recruitment of labour the company needs to fulfill its order.
2. Explain any two merits of this method.                                                          (3 marks)

Ans: 1. The source of recruitment of labour needed to fulfil the company's urgent order is through direct recruitment of casual or ‘Badli’ workers, which is an external source of recruitment. 2. Merits of this method:

• Wider choice: A notice can be placed on the notice board of the enterprise, specifying the details of the available jobs. This approach attracts a large number of job seekers to assemble outside the premises of the organisation, allowing for on-the-spot selection.
• Competitive spirit: Existing workers will have to compete with outsiders, which can result in a more motivated workforce.

Q23. Your school has some vacancies for teachers. The eligible staff has been promoted to half of the posts. Suggest any three ways through which the right type of people may be invited to fill up the rest of the vacancies. (3 marks)
Ans: To effectively fill the remaining teaching vacancies, the following external sources of recruitment are recommended:

• Advertisements: Placing job ads in local newspapers and educational websites can attract a wide range of candidates.
• Employment Exchange: Utilizing government employment exchanges can help connect with qualified candidates actively seeking jobs.
• Recommendations: Encouraging current staff to recommend suitable candidates can lead to finding trustworthy and competent individuals.

Q24. What kind of tests will primarily be used while selecting these people in an organization?  Give reason.

1. An interior decorator
2. A computer operator
3. A public dealing officer
4. A school teacher                                                                                             (4 marks)

Ans: The types of tests primarily used for selecting candidates in an organisation include the following:

• Interest tests: These tests are designed to assess a person's interests or involvement patterns, helping to determine their suitability for specific roles.
• Trade tests: These tests measure the existing skills of candidates, ensuring they possess the necessary competencies for the job.
• Personality tests: These provide insights into a person's emotions, reactions, maturity, and value systems, which are crucial for roles involving interpersonal relationships.
• Intelligence tests: These tests indicate a person’s learning abilities and capacity to make decisions and judgements, which are essential for many positions.

Q25. Ramesh is working under the guidance of Harsh, a carpenter, for the last three years to learn the different skills of this job. Name the method of training Ramesh is undergoing.                                         (1 mark)
Ans: Ramesh is undergoing apprenticeship training under the guidance of Harsh, a carpenter, for the past three years to learn various skills related to this profession.

Q26. The workers of a factory remain idle because of lack of knowledge of hi-tech machines. Frequent visit of engineers is made which causes high overhead charges. Suggest the method of training that should be given to the employees. Explain. (3 marks)
Ans: The workers need to receive appropriate training to effectively operate hi-tech and sophisticated machines. The most suitable method of training in this case is vestibule training. This is an off-the-job training technique where employees learn their roles on the actual equipment they will be using, but the training occurs away from the production floor. In vestibule training, realistic work environments are created in a classroom setting. Employees practice using the same materials, files, and equipment they will encounter on the job, which enhances their learning experience and prepares them for real-world scenarios.

Q27. Identify and explain the following:

1. It is a managerial decision-making process as to predict which job applicants will be successful if hired.
2. It is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in the job.
3. It is the process of choosing from among the candidates from within the organization or from the outside, the most suitable person for the current position or for the future position.                                                                                                   (3 marks)

Ans: Selection is the process referred to in all three statements. It involves identifying and choosing the best candidate from a pool of prospective applicants for a job. The selection process serves two important purposes:

• Ensures that the organisation hires the best among the available candidates.
• Enhances the self-esteem and prestige of those who are selected.

In summary, the selection process is crucial for predicting which job applicants will be successful if hired, differentiating between applicants based on their likelihood of success, and choosing the most suitable candidate for current or future positions.