Please refer to the Staffing Class 12 Notes for Business Studies given below. These revision notes and important question answers have been prepared based on the latest NCERT book for Class 12 Business Studies. Our teachers have developed these short notes and Important Questions Class 12 Business Studies as per the latest syllabus for Grade 12 Business Studies issued by CBSE. Read these notes and important questions to get better marks in examinations
Class 12 Business Studies Staffing
Staffing is concerned with obtaining, utilizing and maintaining a satisfactory and satisfied work force.
Importance of Staffing
1. It helps in discovering and obtaining competent personnel for various jobs within an organization.
2. By putting right person on the right job, it leads to a higher performance of the employees.
3. It ensures the continuous survival and growth of the enterprise through the succession planning for managers.
4. It helps to ensure optimum utilization of the human resources.
5. It improves job satisfaction and morale of the employees through objective assessment and fair rewarding for their contribution.
Steps Involved in the Staffing Process
✔ Estimating the manpower requirements on the basis of workload analysis and workforce analysis.
✔ Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
✔ Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment.
✔ Placement and Orientation is done by giving the charge of the post to the employee for whom he has been selected. It also includes introducing him to the other employees and familiarizing him with the rules and policies of the organization.
✔ Training and development is done in order to ensure continuous learning of their employees so that they contribute effectively and efficiently towards the realization of the organizational goals. Training is given to make a person job fit whereas development seeks to increase their potential for higher level jobs.
✔ Performance appraisal is undertaken to evaluate the worth of an employee to the organization.
✔ Promotion and career planning are an integral part of people’s career and enhance their job satisfaction.
✔ Compensation refers to all forms of pay or rewards going to employees.
Human Resources Management
Human Resource Management refers to the process of managing the employees within an organisation as human factor is recognised as the most important instrument of success in an organisation.
Staffing is considered to be an inherent part of human resource management as it deals with the human element of management and is concerned with obtaining, utilising and maintaining a satisfactory and satisfied work force.
Scope of Human Resources Management
2. Analyzing jobs, collecting information about jobs to prepare job descriptions.
3. Developing compensation and incentive plans.
4. Training and development of employees for efficient performance and career growth.
5. Maintaining labor relations and union management relations.
6. Handling grievances and complaints.
7. Providing for social security and welfare of employees.
8. Defending the company in law suits and avoiding legal complications
Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
Source of Recruitment can be divided into 2 types:- Internal Recruitment and External Recruitment
• Direct Recruitment
• Casual Callers , Web Publishing
• Employment Exchange, Consultants
• Placement Agencies and Management
• Campus Recruitment
• Recommendations of Employees
• Labor Contractors
• Advertising on Television
Selection is the process of choosing the best candidate from a pool of applicants for the job.
Important Tests Used for Selection of Employees
• Intelligence Tests include important psychological tests used to measure the level of intelligence quotient of an individual.
• Aptitude Test is a measure of an individual’s potential for learning new skills.
• Personality Tests give an insight into a person’s emotions, reactions, maturity and value system etc.
• Trade Test seeks to measure the existing skills of the individual.
• Interest Tests are used to know the pattern of interests or involvement of a person.
Steps in the Process of Selection
1. Preliminary Screening- of the applications is done to eliminate those applicants who do not fulfill the minimum requirements of the job.
2. Selection Tests- help in an objective assessment of certain characteristics of individuals and is free from personal bias.
3. Employment Interview -is a face-to- face interaction between the interviewer(s) and prospective candidate.
4. Reference and Background check- is carried out for the purpose of verifying information and gaining additional information about an applicant.
5. Selection Decision- is made from among the candidates who pass the tests and interview.
6. The selected candidates- are asked to undergo a medical examination before the job offer is made.
7. Job Offer- is made to those applicants who have passed all the previous tests.
8. Contract of Employment- is issued to the selected candidate and includes information like job title, duties, responsibilities, date of joining, pay and allowances, etc. if the applicant accepts the job offer
Difference between Recruitment and Selection
|1||Meaning||Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organization.||Selection is the process of choosing the best candidate from a pool of applicants for the job.|
|2||Process||It is a positive process||It is a negative process.|
|3||Sequence||It precedes selection||It follows recruitment.|
Training And Development
Training is the process of increasing the knowledge and skill of the employees to perform specific jobs.
Development is the process of the overall growth of a person in all aspects.
Benefits of Training to the Organization
✔ Training imparts systematic learning to employees thereby helping to avoid wastage of efforts and money and is considered better than the hit and trial method.
✔ It increases the employees’ productivity both in terms of quantity and quality, leading to higher profits.
✔ Training increases the morale of the employees and reduces absenteeism and employee turnover.
✔ It helps in obtaining effective response to fast changing environment – technological and economic.
✔ Training equips the future manager who can take over in case of emergency.
Benefits of Training to the Employee
✔ Training leads to better career of the individual due to improved skills and knowledge during training.
✔ It helps an individual earn more due to increased productivity.
✔ It makes the employee more efficient in handling machines and less prone to accidents.
✔ It increases the satisfaction and morale of employees.
Methods of Training
1. Internship Training is a method for providing on the job training to the employees through a joint program in which educational institutions and business firms cooperate. The learners carry on with their regular studies for the prescribed period. They also work in some factory or office to acquire practical knowledge and skills related to their specific field of expertise.
2. Vestibule training is a popular method for providing off the job training through which the trainees learn their jobs on the equipment they will be using at their actual work place. This is usually done when employees are required to handle sophisticated machinery and equipment
3. Induction training is given to the new employees in order to familiarize them with the key employees of the organization and give information about the working of the organization.
4. Apprenticeship training is provided to the people seeking to enter skilled jobs like plumbers, electricians or iron workers. They are provided training under the guidance of a master worker.
Difference between Training and Development
|1||Meaning||It is a process of increasing knowledge and skills.||It is a process of learning and growth.|
|2||Purpose||It is to enable the employee to do the job better.||It is to enable the overall growth of the employee.|
|3||Scope||It is a job oriented process.||It is a career oriented process.|
|4||Level of employees||It is suitable for the employees at the lower level.||Developmental program are designed for middle and top level managers.|
Case Study Staffing Class 12 Business Studies
Question. Resolutions Pvt. Ltd. is a publishing company. Its book on Business Studies for class XII is in great demand. As a result, the employees in the marketing department are always racing against time. The employees have to work overtime and on holidays to cater to the demand. Managers in the marketing department are under stress as they have to handle more than two territories. The work stress has led to dissatisfaction among the employees and managers.
✔ Name and explain the step of staffing process which has not been performed properly.
✔ State the next two stages immediately following the step identified in part ‘a’.
Answer. 1. The step of staffing process which has not been performed properly is Estimation of manpower requirements: It is the first step in the staffing process and is carried out with the help of workload analysis (assessment of the number and types of human resources necessary for the performance of various jobs and accomplishment of organizational objectives) and work force analysis (assessment of the number and type available).
2. The next two stages immediately following the step Estimation of manpower requirement are as follows:
✔ Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
✔ Selection: Selection is the process of choosing the best candidate from a pool of applicants.
Question. Joseph Bros is a firm manufacturing jute lampshades. It uses leftover jute pieces from various jute factories to manufacture economical lampshades which are supplied to various hotels in nearby towns. It employs men and women from nearby villages as workers for creating good lampshade designs. Joseph Bros, is not able to meet its targets. Namish, the supervisor of the company, was told to analyse the reasons for the poor performance. Namish found the following problems and suggested certain solutions in the working of the business. The number of workers employed was less than what was required for the work. As a result, the existing workers were overburdened. The firm decided to search for new workers and it asked the present employees to introduce candidates or recommend their friends and relatives to the firm. This enabled the firm to ‘put people to jobs’ and assured the attainment of objectives according to plans.
✔ Identify the functions of management being performed by the firm in the above situation.
✔ Name the concept and its source used by the firm to attract more workers for the firm.
✔ State any two values being followed by Jacob Bros.
Ans. 1. The ‘Staffing’ function of management is being performed by the firm.
2. Recruitment is the concept used by the firm to attract more workers to the firm.
3. The firm is planning to use the external source of recruitment i.e ‘Recommendation of present employees’ to attract more workers to the firm.
The two values that are being followed by Jacob Bros are:
✔ Generating employment
✔ Optimum utilisation of resources.
Question. Aakansha, 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 with an objective of reducing the cost and providing job opportunities to the locals. They followed the functional structure in this organisation 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.
Ans. The next three steps that they will have to undertake for obtaining a satisfied workforce for their handicraft unit are as follows:
1. Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
2. Selection: Selection is the process of choosing the best candidate from a pool of applicants.
3. Placement and Orientation: Placement refers to the process of giving the charge of the job for which the employees have been appointed. Orientation may involve a series of activities related to introducing the new employee to other employees and familiarising him with the rules and policies of the organisation. Moreover, he is taken around the workplace and made aware of the fire safety policy, canteen, conference room etc.
Question 4. Mrs. Rajlaxmi is working as the Human Resource Consultant in a firm that manufactures cosmetics, which is facing a problem of high employee turnover. The CEO of the company has invited suggestion from her for retaining the talented employees and reducing the employee turnover. Mrs. Rajlaxmi recommends that the good employees be rewarded in a way that it creates a feeling of ownership among the employees and at the same time, makes them contribute towards the growth of the organisation. Identify the incentive and explain its type which has been suggested by Mrs. Rajlaxmi to the CEO of the company. Also explain any two other incentives of the same type.
Ans. 1. Co-partnership / stock option, which is a type of financial incentive, has been suggested by Mrs. Rajlaxmi to the CEO of the company.
2. The two other financial incentives are described below:
✔ Retirement Benefits: An organisation may provide several retirement benefits to its employees after their retirement such as provident fund, pension and gratuity which provide financial security. These benefits serve as an incentive when they are in service in the organisation.
✔ Perquisites: In many companies perquisites and fringe benefits are offered over and above the salary such as car allowance, housing, medical aid, and education to the children etc.
Question. Zenith Ltd. is a highly reputed company and many people wanted to join this company. The employees of this organisation are very happy and they discuss how they came in contact with this organisation. Aman said that he was introduced by the present Sales Manager, Mr. John. Benu said that he had applied through the newspaper and was appointed as the H.R. Manager. Vaibhav said that he was neither related to any employee of the organisation nor was there any advertisement in the newspaper, even then, he was directly called from IIM Ahmedabad from where he was about to complete his MBA.
1. The above discussion is indicating an important function of management. Name the function of management.
2. The management function identified in part (1) follows a particular process. Explain the step of this process which is being discussed in the above paragraph.
Ans. 1. The function of management being referred to in the above lines is ‘Staffing’.
2. Recruitment is the step in the staffing process which is being discussed in the above paragraph. Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
The various sources of recruitment mentioned in the above paragraph are:
✔ Aman: Recommendation of present employee.
✔ Benu: Advertisement in newspaper Vaibhav: Campus recruitment.
Question. Blue Heavens Ltd. purchased a new machinery from Germany for manufacturing some auto components. It was a cost-effective and quality production machine but during the production process, manager observed that the quality of the production was not as per standards. On investigation, it was found that there was lack of knowledge of using these hi-tech machines. So, frequent visits by engineers were required from Germany but this resulted in high overhead charges. Suggest what can be done to develop the skills and abilities of employees for producing quality products by using these hi-tech machines. Also state how the employees or the organisation will be benefited by your suggestion.
Ans. Training should be provided to the employees to develop their skills and abilities for producing quality products by using these hi-tech machines. The benefits of imparting training to the employee are as follows:
1. Better career: Training leads to better career opportunities for the employees as it helps to improve their skills and knowledge of doing the job.
2. Increased earnings: Training leads to increased performance by the employees thereby helping them to earn more.
3. Increased efficiency: Training makes the employees more efficient in handling machines and less prone to accidents.
4. Improved motivation: Training increases the satisfaction and morale of employees thereby motivating them to work with greater enthusiasm.