CBSE Class 12 Business Studies Staffing Assignment

Read and download free pdf of CBSE Class 12 Business Studies Staffing Assignment. Get printable school Assignments for Class 12 Business Studies. Class 12 students should practise questions and answers given here for Chapter 6 Staffing Business Studies in Class 12 which will help them to strengthen their understanding of all important topics. Students should also download free pdf of Printable Worksheets for Class 12 Business Studies prepared as per the latest books and syllabus issued by NCERT, CBSE, KVS and do problems daily to score better marks in tests and examinations

Assignment for Class 12 Business Studies Chapter 6 Staffing

Class 12 Business Studies students should refer to the following printable assignment in Pdf for Chapter 6 Staffing in Class 12. This test paper with questions and answers for Class 12 Business Studies will be very useful for exams and help you to score good marks

Chapter 6 Staffing Class 12 Business Studies Assignment

Staffing means putting people to jobs. It begins with human resource planning and includes different other functions like recruitment, selection, training, development, promotion and performance appraisal of work force.

Need and Importance of Staffing:

1. Obtaining Competent Personnel: Proper staffing helps in discovering and obtaining competent personnel for various jobs.
2. High Performance: Proper staffing ensures higher performance by putting right person on the right job.
3. Continuous growth: Proper staffing ensures continuous survival and growth of the enterprise.
4. Optimum utilization of human resources: It prevents under-utilization of personnel and high labour cost.
5. Improves job satisfaction: It improves job satisfaction and morale of employee.

Human Resource Management (HRM): The function of Human Resource Management is to provide skilled human elements to the enterprise. Therefore, big enterprises create a  separate department called HRD. This department works under H.R. Managers.
Definition: Human Resource management is the recruitment, selection, development, utilization, compensation and motivation of human resources of the organization. Staffing as a part of Human Resource Management: The scope of Human Resource  Management is wider than staffing. It involves staffing, keeping personnel records, providing expert service and other works. It facilitates procurement and placement of right people on the right jobs. The nature of staffing as a part of HRM is discussed in following points:
1. Staffing is people centered and is relevant in all types of organization and with all categories of personnel from top to bottom.
2. It is duty of every manager to perform the staffing activities. In many enterprises, Personnel Department is established to provide assistance to managers in performing their staffing function.
3. Staffing function is concerned with training, development and performance appraisal of human resources.

Chapter  Staffing_1

• Process of Staffing:

1. Estimating Manpower Requirement: It involves the following:
(a)Making inventory of current human resources in terms of qualification, training & skills.
(b) Assessing future human resource needs of all departments.
(c) Developing a programme to provide the human resources. Job Analysis is an intensive way of finding details related to all jobs.
2. Recruitment: It refers to identification of the sources of manpower availability and making efforts to secure applicants for the various job positions in an organization.
3. Selection: It is the process of choosing and appointing the right candidates for various jobs in an organization through various exams, tests &interviews.
4. Placement and Orientation: When a new employee reports for duty, he is to be placed on the job for which he is best suited. Placement is very important process as it can ensure “Right person for right job”. Orientation/Induction is concerned with the process of introducing a new employee to the organization. The new employees are familiarized with their units, supervisors and fellow employees. They are also to be informed about working hours, procedure for availing leave, medical facilities, history and geography of organization and rules/regulations relating to their wages etc.
5. Training and Development: Systematic training helps in increasing the skills and knowledge of employees in doing their jobs through various methods.
Development involves growth of an employee in all respects. It is the process by which the employees acquire skills and competence to do their present jobs and increase their  capabilities for higher jobs in future.
6. Performance Appraisal: It is concerned with rating or evaluating the performance of employees. Transfers and promotions of the staff are based on performance appraisal.


(A) Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organization.

Sources of Recruitment:

(A) Internal Sources
(B) External Sources
(A) Internal Sources of Recruitment: Internal sources refer to inviting candidates from within the organization. Following are important sources of internal recruitment:

1. Transfers: It involves the shifting of an employee from one job to another, from one department to another or from one shift to another shift.
2. Promotions: It refers to shifting an employee to a higher position carrying higher responsibilities, prestige, facilities and pay.
3. Lay-Off: To recall the temporary worker for work is called Lay-Off, who were temporarily separated from organization due to lack of work.

Advantages of Internal Sources Recruitment:

(1) Employees are motivated to improve their performance.
(2) Internal recruitment also simplifies the process of selection & placement.
(3) No wastage of time on the employee training and development.
(4) Filling of jobs internally is cheaper.

Limitation of Internal Sources

(1) The scope for induction of fresh talent is reduced.
(2) The employee may become lethargic.
(3) The spirit of competition among the employees may be hampered.
(4) Frequent transfers of employees may often reduce the productivity of the organization.

External Sources of Recruitment: When the candidates from outside the organization are invited to fill the vacant job position then it is known as external recruitment. The common methods of external sources of recruitments are:
1. Direct Recruitment: Under the direct recruitment, a notice is placed on the notice board of the enterprise specifying the details of the jobs available.
2. Casual callers: Many reputed business organizations keep a data base of unsolicited applicants in their office. This list can be used for Recruitment.
3. Advertisement: Advertisement in media is generally used when a wider choice is required. Example– Newspapers, Internet, Radio, Television etc.
4. Employment Exchange: Employment exchange is regarded as a good source of recruitment for unskilled and skilled operative jobs.
5. Campus: recruitment and labour contractors can be used for the purpose.

Merits of External Sources

1. Qualified Personnel: By using external source of recruitment the management can attract qualified and trained people to apply for the vacant jobs in the organization.
2. Wider Choice: The management has a wider choice in selecting the people for employment.
3. Fresh Talent: It provides wider choice and brings new blood in the organization.
4. Competitive Spirit: If a company taps external sources, the staff will have to compete with the outsiders.

Limitations of External Sources of Recruitment:

1. Dissatisfaction among existing employees: Recruitment from outside may cause dissatisfaction among the employees. They may feel that their chances of promotion are reduced.
2. Costly process: A lot of money has to be spent on advertisement therefore this is costly process.
3. Lengthy Process: It takes more time than internal sources of recruitment.

• Selection: Selection is the process of choosing from among the candidates from within the organization or from outside, the most suitable person for the current position or for the
future position. 

• Process of Selection:

Chapter  Staffing_2

The successive stages in selection process are:

1. Preliminary Screening: After applications have been received, they are properly checked as regarding qualification etc. by screening committee. A list of candidates to be called for employment tests made and unsuitable candidates are rejected altogether.
2. Selection Tests: These tests include:
(a) Psychological tests which are based on assumption that human behaviour at work can be predicted by giving various tests like aptitude, personality test etc.
(b) Employment test for judging the applicant’s suitability for the job.
3. Employment Interviews: The main purpose of interview is:
(a) to find out suitability of the candidates.
(b) to seek more information about the candidate.
(c) to give the candidate an accurate picture of job with details of terms and conditions.
4. Reference Checks: Prior to final selection, the prospective employer makes an investigation of the references supplied by the applicant. He undertakes a thorough search into candidate’s family background, past employment, education, police records etc.
5. Selection Decisions: A list of candidate who clear the employment tests, interviews and reference checks is prepared and then the selected candidates are listed in order of merit.
6. Medical/Physical Examination: A qualified medical expert appointed by organization should certify whether the candidate is physically fit to the requirements of a specific job. A proper physical exam will ensure higher standard of health & physical fitness of employees thereby reducing absenteeism.
7. Job Offer: After a candidate has cleared all hurdles in the selection procedure, he is formally appointed by issuing him an Appointment Letter. The broad terms and conditions, pay scale are integral part of Appointment Letter.
8. Contract of Employment: After getting the job offer, the candidate has to give his acceptance. After acceptance, both employer and employee will sign a contract of employment which contains terms & conditions, pay scale, leave rules, hours of work, mode of termination of employment etc.
Nishant wants to set a unit in rural area where people have very few job opportunities and labour is available at a low cost.
For this he wants four different heads for Sales, Accounts, Purchase and Production. He gives an advertisement and shortlists some candidates after conducting selection tests.
1. Identify and state the next three steps for choosing best candidates.
2. Also identify two values which Nishant wants to communicate.

• Training: Training is the act of increasing the knowledge and technical skills of an employee for doing a particular job efficiently. Both existing employees and new employees get acquainted with their jobs and this increases job related skills.

Benefits to the Organization:

1. It enhances employee’s productivity and quality.
2. Training increases employee’s morale.
3. Employees get new technical knowledge.
4. Efficient use of machines.

Benefits to the Employee:

1. Improved skills and knowledge of employee.
2. Increased performance by the individual help him to earn more.
3. Less accidents.
4. Training increases the satisfaction and morale of the employee.

Training Methods:

(A) On the Job Method: It refers to the methods that are applied at the work place, where the employee is actually working. It means learning while doing.
The following are the methods of On-the job training:
1. Apprenticeship Training: Under this, the trainee is placed under supervision of an experienced person (master worker) who imparts him necessary skills and regulates his  performance. The trainee is given stipend while learning so that he/she can enjoy “earn while you learn” scheme.
2. Internship Training: Under this method an educational institute enters into agreement with industrial enterprises for providing practical knowledge to its students by sending them to business organizations for gaining practical experience.
3. Induction training: is a type of training given to help a new employee in settling down quickly into the job by becoming familiar with the people, the surroundings, the job and the business. The duration of such type of training may be from a few hours to a few days. The induction provides a good opportunity to socialize and brief the newcomer with the  company’s overall strategy, performance standards etc. If carefully done, it saves time and cost (in terms of effectiveness or efficiency etc.)

4. Coaching : In this method, the superior guides and instructs the trainee as a a coach.

5. Job Rotation : In this method employee is transfer to other department or other shift.

(B) Off the Job Method : These methods are used away from the work place.
It means learning before doing.

1. Class room lectures : The lecture approach is well adapted to convey specific information. The use of audio-visuals can often make a formal classroom.

2. Films : They can provide information to the employee.

3. Case study : Trainee study the cases to determine problems & analyses causes.

4. Computer modelling - Training provide to the employee by the help of computer.

• Training and Development: Training is concerned with imparting technical knowledge in doing a particular job. But development is a wider process concerned with growth of an  individual in all respects. However, both are related processes; training helps the employees in learning job skills whereas development shapes attitude of the employees.
Chapter  Staffing_3
Chapter  Staffing_4

Words that matter

1) Staffing: Staffing means ‘putting people to job’ or ‘finding the right people for right job’.

2) Workload analysis: It requires finding number and type of employee required to perform various job designed in organizational structure.

3) Workforce analysis: It means analyzing existing workforce or employees already occupying the job positions and how many of them are overburdened or under burdened.

4) Recruitment: It refers to the process of finding possible candidate for a job or a function. It has been defined as the ‘process of searching for prospective employees and stimulating them to apply for the job in the organization, 

5) Selection: It is the process of identifying and choosing the best person out of a number of prospective candidates for a job.

6) Orientation: Orientation is introducing the selected employee to other employees and familiarizing them with the rules and policies of the organization.

7) Placement: Placement refers to assigning specific job to the candidates, selected for appointment. After selection the employee is given appointment letter and is asked to occupy the vacant job position.

8) Training: Training is the process of increasing the knowledge, skill, ability of the employee for doing a particular job.

9) Development: Development refers to learning opportunities designed to help employees grow.

10) Performance appraisal: Performance appraisal means evaluating an employee’s current and/or past performance as assigned certain predetermined standards.

11) Promotion: Promotion refers to being placed at higher job position with more pay, job satisfaction and responsibility.

12) On-the-job methods: On-the-job methods are applied to the workplace, while the employee is actually working. It means learning while doing.

13) Off-the-job methods: Off the job methods are used away from the work place. It means learning before doing.

MCQs for NCERT Class 12 Business Studies Organising

Question. Which structure of organisation is helpful in locating the inefficient employees?
(a) Formal
(b) Informal
(c) Both the above
(d) None of the above

Answer : A

Question.A tall structure as a
a. narrow span of management
b.wide span of management span of management
d.less span of management. 

Answer : A

Question. Which organisation structure does not have duplication of work?
(a) Formal
(b) Informal
(c) Both (a) and (b)
(d) None of these

Answer : A

Question. In which type of organisation, the principle of scalar chain is fully followed:
(a) Divisional organisation
(b) Formal organisation
(c) Informal organisation
(d) None of the above

Answer : B

Question. Which of the following is not the disadvantage of formal organisation?
(a) Lack of initiative
(b) Delay in work
(c) Lack of favourtism
(d) Mechanical relationship

Answer : C

Question. Which of the following is written in the organisation manual?
(a) Goods purchased
(b) Goods sold
(c) Meeting of Organisation
(d) Authority and responsibility of different posts

Answer : D
Question. Which of the following organisations lasts longer?
(a) Formal
(b) Divisional
(c) Both the above
(d) Informal

Answer : C

Question. What is the key to managerial post?
(a) Responsibility
(b) Authority
(c) Accountability
(d) None

Answer : B

Fill in the blanks

1. A company producing multiple products has divisional structure for each major product.
2. All the jobs related to marketing are grouped in Marketing department.
3. Interdependental conflicts are one of the disadvantages of functional structure.
4. Grouping of activities on the basis of functions is a part of functional organization.
5. Functional heads cannot be managers because they are unable to gather experience in different areas.
6. Functional structure is suitable when the size of organization is large.
7. In divisional structure, the organizational structure comprises separate divisions.
8. Each division is multifunctional because within each division functions ae performed altogether to get goals.
9. Functional structure is economical than divisional structure because duplication is avoided.
10. Organizational structure is classified into functional and divisional.
11. Organising is the process of defining and grouping the activites of the enterprise.
12. Organising translates plans into actions.
13. Organising clarify authority and responsibility for results and logical grouping of activites.
14. Organising involves dividing of work into small task.
15. Organising ensures the optimum utilization of resource.


MCQs for NCERT Class 12 Business Studies Staffing


QuestionContract of employment does not include: 
a) Job title
b) Job offer
c) Rates of pay
d) Work rules
Answer :  B

Question. What type of the process selection is?
(a) Positive
(b) Negative
(c) Qualitative
(d) Quantitative

Answer : B

Question. What is the first step in the process of selection?
(a) Selection Tests
(b) Job Offer
(c) Preliminary Screening
(d) Selection Decision

Answer : C

Question. Which of the following aims at examining the interest of the candidate?
(a) Intelligence Test
(b) Interest Test
(c) Aptitude Test
(d) All the above

Answer : B

Question. What does the Reference and Background test aims at knowing about the candidate?
(a) Character
(b) Social Relations
(c) Both the above
(d) Economic Condition

Answer : C

Question. After crossing the bar of physical test which letter is given to the selected person?
(a) Letter of Regret
(b) Appointment Letter
(c) Both the above
(d) None of the above

Answer :  B

Question. Training and development of employees are related to:
(b)career path

Answer :  B

Question. When a person undergoes a course in engineering, is ________ .
(a) Training
(b) Education
(c) Development
(d) All the Above

Answer :  B

QuestionUnder which training method, both the technical institutes and the business organisations jointly impart training to their members?
(a) Induction Training
(b) Apprenticeship Training
(c) Vestibule Training
(d) Internship Training

Answer : D

MCQs for NCERT Class 12 Business Studies Organising

Question. Last step of organizing process
(a) identification and division of work
(b) departmentalization
(c) Assignment of duties.
(d) estabilishing reporting system. 

Answer : A

Question. Under what function of management the relationship between different posts (positions) is explained?
(a) Planning
(b) Communication
(c) Organisation
(d) Supervision

Answer : C

Question. What is the basis of delegation of authority?
(a) Centralisation
(b) Decentralisation
(c) Both (a) and (b)
(d) Division of labour

Answer : D

Question. Where lies the need of organisation?
(a) In business organisation
(b) In non-business organisation
(c) In both (a) and (b)
(d) No where

Answer : C

Question. Which organisation structure is consciously or deliberately established?
(a) Formal
(b) Informal
(c) Both (a) and (b)
(d) None

Answer : A

Question. decetralization is the extension of
(a) responsibility
(b) authority
(c) delegation
(d) planning 

Answer : C

Question. Which organisation structure is based on rules and procedures?
(a) Informal
(b) Formal
(c) Both (a) and (b)
(d) None

Answer : B


Question. Organization structure is an important means, the wrong structure will seriously destroy the business.
Answer : True

Question. Product specialisation helps in the development of skills. 
Answer : True

Question. Duplication of activities across the products do not incease the cost. 
Answer : False

Question. Divisional structure is suitable for the firms producing single poduct.
Answer : False

Question. Functional structure doesnot promote efficiency as employees perform similar tasks. 
Answer : False

Question. Divisional heads are responsible for profits and loss of their division. 
Answer : True

Question. Functional structure is economical than divisional structure.
Answer : True

Question. Oganisational structure is the framework within which managerial and operating tasks are performed. 
Answer : True

Question. A pitfall of organizing is that repetitive performance of same job leads to monotony, stress nad boredom. 
Answer : True

Question. Smooth flow of communication is not the result of proper organization structure. 
Answer : False


 MCQs for NCERT Class 12 Business Studies Staffing


Question. (I) Training is job-oriented and development is career oriented.
(II) Scope of training is broad and that of development is limited.
Above both statements are:
(a) True
(b) False
(c) Statement (I) is True and Statement (II) is False.
(d) Statement (I) is False and Statement (II) is True.

Answer : C

Question. Which of these is the purpose of Recruitment
(a) Make sure that there is match between cost and benefits
(b) Help increase the success rate of the selection process by reducing the number of visibly under qualified or over qualified job applicant.
(c) Help the firm create more culturally diverse work force.
(d) Help the firm to recognise the calibre of every employee.

Answer : B

Question. The firm must go to external source of recruitment for
(a) Lower entry jobs.
(b) For expansion
(c) For positions whose specifications cannot be met by present personnel.
(d) All of the above.

Answer :  C

Question. Recruitment is a widely viewed as a _________ process
(a) Positive
(b) Negative
(c) Both positive and negative
(d) None

Answer :  A

Question. Which of the following is the most serious problem that might arise due to excessive reliance on Internal recruitment.
(a) High Labour turnover.
(b) Lack of motivation
(c) Reduce job performance
(d) Internal resistance.

Answer :  C

Question. Internal recruitment has the potentiality to increase the ___________ of the employee.
(a) Conclict
(b) Misunderstanding
(c) Income
(d) Morale

Answer :  D

Question. A perquisite for a successful & efficient recruitment programme is to have a(n)
(a) Corporate policy
(b) HR policy
(c) Recruitment policy
(d) Health policy

Answer :  C

Very Short Answer Type Questions

Question. Which management function concentrates on employing and retaining right person at the right place? 
Answer: Staffing.

Question. “The scope of staffing is limited to employing people”. Do you agree with this? 
Answer: No. I do not agree with this statement. Staffing function has a wide scope as it includes various activities like recruitment, selection, placement, training, transfer, development, etc.

Question. Why is it said that recruitment is a positive step in the process of staffing? 
Answer: Recruitment is a positive process because it aims at attracting number of candidates to apply for the given job and there is no rejection in this process.

Question. “New talent and new ideas in the organisation’. Which source of recruitment has the give motto ? 
Answer: External source.

Question. Name the method of training in which trainees lean on the equipments they will be using.
Answer: Vestibule training.

Question. Give the meaning of orientation as a step in the process of Staffing.
Answer: Orientation refers to the process of introducing new employees to the organization.

Question. What is meant by ‘Estimating man-power requirements’ as a step in the process of staffing? 
Answer: It means forecasting and determing number and type of employees required in the organisation

Question. Give the meaning of ‘Placement’ as a step in the process of staffing.
Answer: Placement refers to assigning specific jobs to the candidates, selected for appointment.

Question. What is meant by ‘Induction Training’?
Answer: Induction training refers to the process of introducing the selected employees to other employees and familiarizing him with the rules and policies of the organization.

Question. What is meant by ‘Performance Appraisal’? 
Answer: Performance Appraisal means evaluating an employee’s current and/or past performance as against certain predetermined standards.

Question. Why is it said that selection is a negative process? 
Answer: Selection is said to be negative process because it aims at rejection employees. At every stage many people are eliminated from the process and only a few more to next stage.

Question. 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. Name the source of recruitment used by the company.
Answer: The source of recruitment is casual callers.

Question. What is meant by ‘Democratic style’ of leadership?
Answer: Democratic style of leadership is one in which a leader gives order only after consulting the group and work out the policies with the acceptance of the group.

Question. Give the meaning of ‘Authoritative style’ of leadership. 
Answer: Authoritative style of leadership is one in which a leader gives order and insists that they are obeyed. He determines the policies for the group without consulting them.

Question. Why informal system of communication is generally referred as the ‘grapevine communication’? 
Answer: Informal system of communication is generally referred to as grapevine communication because it spreads throughout the organization with its branches going out in all directions in utter disregard to the levels of authority.

Question. What is important while analyzing deviations in controlling?
Answer: While analyzing deviations, it is important to determine the acceptable range of deviations/ Key result areas.

Question. What should be the ‘focus point’ for a manager while controlling’ as controlling at each and every step is not possible? 
Answer: Focus point for a manager while controlling should be key Result Areas.

Question. Why is controlling called a backward looking function? 
Answer: It is said that controlling is looking back because it conducts a post mortem of part activities to find out deviations from the standards.

Short Answer Type Questions

Question. Enumerate four points of importance of staffing. 
Answer: Staffing is considered an important function of management because of the following reasons :
1. It helps in discovering and obtaining competent personnel for various jobs.
2. It results in improved performance by putting right person on the right job.
3. It ensures continuous survival and growth of the enterprise through the succession planning for managers.
4. It ensures optimum utilization of human resources. It avoids disruption of work by indicating in advance the shortage of personnel.
5. It improves job satisfaction and morale of employees through objective assessment and fair reward for their contribution’
6. It avoids wastage of material, time, effort and energy.

Question. State any three advantages of Internal Sources of Recruitment.
Answer: Advantages of internal sources of recruitment:
(a) Motivate employees as promotion at a higher level may lead to a chain of promotions at lower levels in the organization.
(b)Simplify the process of selection as the candidates are already known to the organization.
(c) No needs for induction training as the employees are already familiar with the organization.
(d)Help in adjustment of surplus staff in those departments where there is shortage of staff.
(e) Economical source of recruitment.

Question. Give the meaning of ‘Placement’. ‘Orientation’ and ‘Training’ in the process of falling. (3)
(1) Placement refers to the employee occupying the position or the post for which he/she has been selected.
(2) Orientation refers to introducing the selected employee to other employees and familiarizing him with the policies and rules of the organization.
(3) Training refers to the process by which aptitudes, skills and abilities of employees to perform specific jobs are improved.

Question. Explain any three assumptions of Maslow’s need hierarchy theory.
The following are the assumption of Maslow’s need hierarchy theory.
(i) People’s behavior is based on their need. Satisfaction of such needs influences their behavior.
(ii) People’s needs are in hierarchical order, starting form base needs to higher level needs.
(iii) A satisfied need on longer can motivate a person; only next higher level need can motivate him.
Answer: A person moves to the next higher level of the hierarchy only when the lower need is satisfied. The following are the assumption of Maslow’s need hierarchy theory.
(i) People’s behavior is based on their need. Satisfaction of such needs influences their behavior.
(ii) People’s needs are in hierarchical order, starting form base needs to higher level needs.
(iii) A satisfied need on longer can motivate a person; only next higher level need can motivate him.
(iv) A person moves to the next higher level of the hierarchy only when the lower need is satisfied.

Question. Blue Birds Ltd. Offers to its employees to issue shares at a price which is less than the market price.
(i) Name and explain the type of incentive offered to the employees.
(ii) Explain one more incentive of the same category. 
The following are the assumption of Maslow’s need hierarchy theory.
(i) People’s behavior is based on their need. Satisfaction of such needs influences their behavior.
(ii) People’s needs are in hierarchical order, starting form base needs to higher level needs.
(iii) A satisfied need on longer can motivate a person; only next higher level need can motivate him.
(iv) A person moves to the next higher level of the hierarchy only when the lower need is satisfied.
(a) Stock option
(b) Explanation of any one of the following incentives.

Question. There are some barriers in communication which are concerned with organizational structure and rules and regulations’. State any three such barriers. 
Answer: Organizational barriers:
(i) Organizational policy is not supportive to free flow of communication.
(ii) Rigid Rules and regulations
(iii) Status of the superior may not allow his subordinates to express their feelings freely.
(iv) Complexity in organization structure leads to delayed and distorted communication.
(v) Lack of organizational facilities like frequent meetings, suggestion box etc.

Question. Explain why it is said that controlling is a forward looking as well as back ward looking function. 
Answer: Controlling is forward looking because corrective action in controlling seeks to improve the performance in the future or to revise future plans.
Controlling is looking back because it is like a postmortem of post activities to find out deviations from the standards.

Question. Explain the concept of ‘Critical Point Control’. 
Answer: Since it is neither easy nor economical to check each and every activity in an organization, the control should focus on key result areas
• These KRAS are very essential for the success of an organization and act as critical points.
Therefore , the entire organization has to suffer if anything goes wrong at these points.
For example, in a manufacturing organization , an increase of 10% in the material cost is more troublesome than 15%increase in stationery expenses.

Question. Explain how ‘Management of Exception’ helps in the controlling process.
Answer: Benefits of management by exception are as under:
(i) Management by exception helps in the controlling process by identifying only significant deviations which go beyond the permissible limit and bringing them to the notice to the
management. It saves the valuable time of the management.
(ii) It helps the management to identify important deviations which need timely action to keep the organization on the correct path.
(iii) It facilitates delegation of authority because it is based on the belief that an attempt to control everything results in controlling nothing.
Thus, it helps in increasing morale of employees.
(iv) It helps the management to concentrate on important matters beneficial for the long-term profitability of the organization.

Question. Mr. Ram murti, the director of “bahuguna ispat udyog ltd.” Is of the opinion that an employee is prudent and sensitive resource of the organization. As such, special attention must be paid to his emotions. This is the reason why Mr Bahuguna always formulate such plans are beneficial to both the employees and the organization. With a view to giving a practical shape to his opinion, he has chalked out a plan. According to this plan, employees should be inspired to visit popular management institutes to acquire latest knowledge. This will enhance their performance level and prove beneficial to the organization as well as the employees. Keeping it in view, mr Bhauguna, contacted IIM, ahmedabad. The latter agreed, on the undertaking that their (IIM) MBA students be allowed to visit a company so that they may get practical knowledge. Both reached an agreement.
(i) What objective of the management has been referred to at the beginning of the above paragraph? Identify it?
(ii) Plan of Mr Bahuguna relates to which component of management? Identify and describe the same.
(iii) What value is being affected here? 
(i) it refers to ‘individual objectives’ of the management. It refers to the objectives to be determined with respect to the employees of the organization.
(iii) Mr Bahuguna’s plan relates to the training of the employees. He is making use of ‘internship training method’. It is that training which is imparted jointly both by the educational and business organization to strike balance between the theoretical and practical knowledge of their members.
(iv) Realizing of insignificance of human sentiments here humanity has been dealt with.

Question. Sahil, the director of a garments company, is planning to manufacture bags for the utilization of waste materials of one of his garments unit. He decided that this manufacturing unit will be set up in a rural area of Orissa where people have very less job opportunities and lab our is available at very low rate. He also thought of giving equal opportunities to men and women.
(i) Identify and state the next two steps that Sahil has to follow in the staffing process after selecting the above heads.
(ii) Also identify two values which Sahil wants to communicate to the society by setting up this manufacturing unit.
(i) Next two Steps of staffing process:
(a) Placement and Orientation: Placement means to join the post for which he/she has been selected. Under orientation the employee is given a brief presentation about the company and is introduced to his superiors, subordinates and colleagues.
(b)Training and Development: At this step of process of staffing, training and development are imparted to the employees so that their efficiency and effectiveness is increased.
(i) Values:
(a) Development of backward areas.
(b) Equality.

Question. Love and Kush are two friends. Both are MBA (Final year) students One day, their professor called them to class stage for a surprise test. He told that one of them will establish relationship between any two functions of management. Then, the other one will establish reverse relationship between the same two functions. Both will have to give justification for the relationship explained by them. It was a test carrying 50 marks. Both the students were intelligent and skillful. Love was the first to speak.
Love said that in his opinion of the two functions of management selected by him one is always looking ahead (future) and the other is looking back (past).
No sooner did love express his opinion, than Kush identified the functions selected by him (Love).In his reply, Kush said that the one function stated by Love to have been looking ahead was in his opinion, looking back and the other one stated by him (Love) to have been looking back was looking ahead.
(a) Identify the functions of the management discussed in the above paragraph.
(b) Justify the contrary relations of management functions as viewed by Love and Kush.
Answer: (a) Planning and Controlling
(c) (i) Love’s reply and relations between the functions of management.
Planning is Looking Ahead whereas controlling is Looking Back.
(ii) Kush’s reply and relationship between the functions of management.
Planning is looking back whereas Controlling is looking ahead.

Question. Kumari Ekta Bhandari is working as the personnel Manager in ‘Jaishri Limited’. The specialty of her company is that the financial position of all its employees is good. The CEO of Kumari Ekta asked her to suggest a Method of Motivation. He said that the method should be such as should be happily acceptable to all the employees. Ekta spoke to several employees in the connection. The thoughts of some of the employees gave the feeling that they give more importance to Individual Autonomy. One group of the company stressed that good performance should be rewarded. Another group of employees pleaded for recognizing the importance of the employees in the company. On the basis of this investigation Ekta suggested to the CEO a very good method of Motivation, with made him very happy. This method was immediately implemented.
Consequently, within a few days the company’s growth rate appeared to have become fast.
(a) Identify the sub-function of management described in the paragraph above.
(b)Which Motivation Method, in your view, might have been suggested by the Personnel Manager? Explain this Motivation Method.
(c) Identify the value that has been discussed here. 
Answer: (a) Here one of the elements of Directing Function of Management, Motivation has been described.
(a) In my view, the personnel Manager might have suggested the Motivating Method of Organizational Climate.
(b) Motivating the employees.

Question. Mr. Nath, a recently appointed production manager of snitch Ltd. Has decided to produce jute bags instead of plastic bags as these are banned by the government. He set a target of producing 1000 jute bags a day. It was reported that the employees were not able to achieve the target. After analysis he found that employees were demotivated and not putting in their best for achieving the target. Mr. Nath’s behavior is good towards the employees. His attitude is always positive. So he announced various incentive schemes for the employees like:
• Installing award or certificate for best performance
• Rewarding an employee for giving valuable suggestions
• Congratulating the employees for good performance
(a) Identify the functions of management highlighted in the above paragraph.
(b)State the ‘incentive’ under which the employees are motivated.
(c) State any two values which the production manager wants to communicate to the society by his work and behavior.
Answer: (a) Directing and Controlling
(b) Employee recognition program me (non-monetary incentive)
(c) Value:
• Sensitivity of environment
• Good behavior towards employees.

Question. Mr.Sidharth pandey is the Marketing Manager of ‘Swastik Limited’. He is a loyal employee of the company. He makes all possible efforts to enhance the public image of company’s products. That is the sole reason of continuous rise in company’s sales. Whatever sales target he determines, he realizes much more sales every time. It means that every time there occurs positive deviation. Mr pandey remains in constant rapport with production manager. He always endeavors’ that the products of the company should be of high quality. On account of maintaining high quality of the products, he is always ahead of his competitors. As a Marketing Manager, he also fixes price of company’s products. While fixing the price he takes special care to ensure that prices should have no adverse impact on the budget of the consumers. His main aim is to present true image of the company and its products in advertisement.
(a) Which step of controlling process has been referred to in the above paragraph? Clarify.
(b) Indentify any two values directed to the society by Mr pandey.
Answer: (a) Third step of Controlling process i.e., “Comparison of actual performance with standards” has been discussed.
(c) Values:
• Good health
• Reasonable price.

Question. Business of “shardha auto pvt ltd.” Is confined only to one state. Now it intends to extend the same to two other states. Mr Jatin jain, the managing director of the company, is busy in making a plan to this effect. First of all, he contacted mrs rukmani rana , the HR manager of the company. Both were of the record of the opinion that they would requires more 75 employees to extend their business to two new state. On looking at the record of the existing employees, it transpired that 8 employees were going to retire very shortly. Besides two employees were proceedings on long term study leave abroad for two years. Thus, company would now acquire 85 employees in all. Mrs Rana recommended to Mr Jatin that out of the total vacant posts, 15 be reserved for women. Mr Jatin gladly accepted the proposal. Now HR Manager was to decide as to what arrangement to be made for the appointment of neede person. She hit upon a plan according to this plan some employees would be recruited with the help of existin employees, for some other inrenet would be approached and or the remaining potential employees placement agencies operating in the market would be contacted.
(i) Describe what function of management has been referred to in the above paragraph?
(ii) What sources of recruitment are being used by H.R manager? Explain briefly.
(iii) Identify the value hinted at.
Answer: (i) staffing
(ii) A. recommendation
B. internet/websites
C. private placement agencies
(iii) Women empowerment

Question. Mr Anil Garg is working as Managing Director of “CLS Packaging Limited “.
He is not in favor 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 large numbers of persons are unemployed and so labor is available at 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 units 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, sale production and Accounts. 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.
(i) Which form of organization structure is being adopted by the company?
(ii) Identify and give the meaning of wage payment scheme adopted by the company to motivate the workers.
(iii) What methods of recruitment have been adopted by the company?
(iv) Identify these two values that Mr Garg has been dedicating to the society by establishing this new unit. 
(i) Divisional Organisation Structure.
(iii) Differential wage system: It refers to that technique of scientific management which differentiates between efficient and inefficient workers.
(iv) Promotion
•Casual callers
(v) Development of backward area
• Rise in employment opportunities

Long Answer Type Questions

Question. Anjali had been working with ‘Tata Enterprises’ for the last ten years. She was famous for her dedication towards the work. When the Manager senior to her retired, all her colleagues thought that now Anjali would be promoted. But to everyone’s surprise the vacant post was filled by an outsider,’ Miss Monika’. Anjali felt demoralized and her performance started declining. She would absent herself often and could not meet her targets.
Miss Monika was a good leader who would not only instruct her subordinates, but also guide and inspire them. She noticed Anjali’s behavior and felt that her performance could be improved. She started involving Anjali in decision-making issues related to the organization and made her a part of a high-level joint managements committee. Anjali was
now punctual to office and her performance started improving.
(a) Identify the function of management being performed by Monika.
(b)Name the element of the above function of management which helped Monika to improve Anjali’s behavior.
(c) State any three features of the element identified in (b) above.
Answer: (1) Directing
(2) Motivation
(a) Features of Motivation:
(i) It is an internal feeling.
(ii) It produces good directed behavior.
(iii) It can be either positive or negative.

Question. Mr Stanley Anthony is production Manager of ‘Coconut Oil and General Mills Ltd., His main virtue is that prior to doing anything, he ponders over it. To explore and analyze different options of each and every activity that is to be undertaken by him in future has become his habit. Besides, he quickly brings his subordinates under his own influence. They do what he wants. Inspire of all this, for the last few months performance of his department failed to achieve the expected level. This situation put him into
lot of worry. To counter this situation, he sought help from some external specialists. Finally, he concluded that the poor performance was due to reasons:
First inefficiency of some newly recruited employees and second, wears and tears of machines. In order to remove these shortcomings he took the following corrective action:
(i) To remove inefficiency of the employees he established a training centre and gave its charge to an expert trainer.
(ii) To deal with the wear and tear of machines he decided to replace them with new ones.
In the context of the above paragraph, answer the following questions:
(a) Identify, by quoting the lines any two functions concerning management taken by Mr Anthony.
(b) Identify the two steps of controlling process mentioned here.
(c) Identify training method. 
Answer: (a) Planning:
“To explore and analyse has……………………………………..become his habit.”
“Besides his……………………………………………….own influence.”
(b)* Analysing deviations
* Taking corrective action
(c) Vestibule training.

Question. “prakash Limited” is a company manufacturing electrical goods. Smt. Renu Bala Jhingan is its managing director. By virtue of her wise direction, company has achieved great heights. A management institute one day invited her for a lecture. There she got an opportunity to dialogue with the students of management studies. She narrated to them the story of her success. She told them two main things. First, the employees should know that their work is being evaluated and progress report prepared. Second, optimum use of human and physical resources should be made possible.
(a) Identify the above said function of the management.
(b) On the basis of the aforesaid paragraph write four points regarding the importance of the functions of management as identified in point (a) above. 
Answer: Controlling
(c) Importance of controlling
(i) Improving Motivation of Employees.
(ii) Making Efficient Use of Resources.

Question. Mr. Ekant Miglani, after completing his studies of B.B.A is working in the production Department of ‘Jai Chemicals Limited’. There are fifty persons working at different posts in his Department. He tries hard to keep a watch over the Routine Activities of all the employees. He observed one of the employees, Bhola Ram and a few others working on machines. They were running the machines in a wrong manner. The machines were very sophisticated. Mr Miglani at once explained the right method of working to them. He wanted to solve this problem of the employees for good. He called a meeting of his subordinates. He took this decision that the company will have to organize training of the employees immediately.
They also decided that all the employees will drop a suggestion each in th suggestion-box daily, so that the different activities of the department may be improved speedily. It was announced that the employees giving valuable suggestions shall be rewarded.
On the basis of the above paragraph answer the following questions:
(a) Which function of management is being discharged by Mr Miglani by keeping a watch over the Routine Activities?
(b)Which method of training of the employee’s will be suitable to be adopted here? Explain.
(c) Which style of leadership is being followed by Mr Miglani?
(d)Which method of Motivation will be decided to be adopted in the meeting of employees?
Answer: (a) Supervision
(b) Here the Vestibule Training Method will be suitable to be adopted.
Under this training method a separate training centre is set up. In this centre factory like atmosphere or circumstances is/are created and the employees are trained to work on sophisticated machines.
(c) Democratic leadership Style.
(d) Employee Recognition Program me.

Question. Five students of BBA took part in a discussion. The subject of their discussion was: “Why do people get motivated to do anything?” The main portions of their discussion are as under:
The first student said, “People work because they want to deposit wealth enough to protect themselves from diseases and to be relieved of the tension of old age.”
The second student said, “People work because they want to arrange food, cloth and shelter for themselves at any rate.”
The third student said,”
People work because they want to reach the top of the field in which they are. They, therefore, put in untiring efforts.”
The fourth student said, “People work, so that when they have money, people will become friendly with them and they will stand by them through thick and thin.”
The fifth student said, “People work, so that they may get respect in the society and that they may be recognized as exceptional persons.”
(a) The discussion given above relates to which function of management?
(b)The five friends spoke about the different needs of people as the basis of their doing work. Identify these needs. 
Answer: (a) Motivation
(b) First friend: Safety Needs
Second friend: physiological Needs
Third friend: Self Actualization Needs
Fourth friend: Social Needs
Fifth Friend: Esteem Needs

Question. “Kitchen saj Limited.’ Is a company manufacturing plastic goods? Mr. Shah is its Marketing Manager and Mr sahu, its Production Manager. Style of working of both the managers is entirely different. Mr Shah set such standards for different activities of his department as were quite easy to achieve. On the other hand, Mr Sahu set standards for different activities of his department as were very difficult to achieve. As a result, marketing department achieved its targets very easily. Mr Shah and his team were very pleased with these results. But the situation prevailing in the production department was quite contrary to it. Mr sahu was far behind his tar gets. Now he and his team were very much worried.
(a) Which step of controlling process has been discussed in the above paragraph?
(b)In your opinion, both the managers would have set standards for which activities of their respective departments? Write two standards each.
(c) Of the two managers, one set easily achievable standards whereas the other set such standards as could be achieved with great difficulty. In your opinion, how affect situation would have on the employees?
(d) State in one word, what should be the type of standards?
Answer: (a) Here, first step of the controlling process i.e., setting of performance Standards, has been discussed.
(c) Main standards of Marketing Department
• Sales Volume
• Sales Expenses
Main standards of production Department
• Quality
• Quantity
(d) Effect of easily achievable standards:
In this situation employees turn lazy (idle.)
Effect of those standards which are achieved with difficulty:
In this situation employees are worried.
(e) Reasonable.

Question. “mohinda rice land ltd.” Is known as the king of rice trade. The company has lasge market share. Company’s internal environment is exceedingly pleasant. Chief executive officer of the company has delegated most of the decision making authorities to departmental managers. For instance. All departmental managers have the authorities to appoint any employee getting a salary upto rs 50000 per month. They need not btain prior permission from the CEO for this perpose it is the practice of the company to entrust one person the responsibility of performing identical activities.
It increases the efficiency of the organization.
Since everything is positive in the company, all persons are keen to seek amployement there. Some of the employees are conversing with one another as to how they got appointment in the company.
Deepak miglani told that he applied for the job after reading an advertisement in the news paper. He was called for interview. He was selected on this basis.
Deepak Sharma told that he was introduced by by the existing finance manager.
Deepak pathak told that he had neither seen any advertisement in the newspaper nor was he introduced by the company by any person, rather he was directly appointed on the basis of interview conducted in the university where he was about to finish his M.A economics (hons.) course.
Answer the questions on the basis of the above paragraphs.
(a) Which factor of the organizing function of the management has been refferd to here ?
(b) Which principal of management has been high lighted here? Clarify the same.
(c) Which factor of the staffing function of the management has been reffered to here?
(d)Describe the above mentioned three methods concerning the sources of recruitment as identify vide point. 
Answer: (a) decentralization
(B) principle of unity of direction
(C) recruitment
(D) Deepak meglani:advertising media
Deepak Sharma: recommendation
Deepak pathak: campus recruitment

Question. Mr Vikas Goel is an H.R. Manager of “sanduja furniture pvt. Ltd.” At the beginning of the New Year he anticipated that the company will need new 30 additional persons to fill up different vacancies. He gave an advertisement in the newspaper inviting applications for filling up different posts. As many as 120 applications were received. The same were scrutinized. Out of these, conditions of 15 applicants were not acceptable to the company. Letters of regret, giving reasons, were sent to them. Remaining candidates were called for preliminary interview. The candidates called for were asked to fill up blank application from.
Thereafter, they were given four tests.
The objective of the first test was to find out how much interest the applicant does take in his work.
The objective of the second test was to find out ‘specialisation’ of the applicant in any particular area.
Third test aimed at making sure whether the applicant was capable of learning through training or not.
The purpose of the fourth test was to find out how much capability a person has to mix-up with other persons, and whether he can influence other persons and get influenced by them.
Answer the following question on the basis of the above information:
(a) Identify different tests given to the applicants by Mr Goel.
Answer: (a) (i)” at the beginning of the new year…………………….different vacancies”.
• estimating man power
(ii)” He gave an advertisement ………………………….120 applications
were received”.
• recruitment
(b) mr Goel gave tests in the following order:
(i) interest test
(ii) special trade efficiency test
(iii) Aptitude test
(iv) Personality test

Question. Two friends, Nancy and poonam, are working as managers in the different departments of ‘Libra Limited’. They often talk about the performance level in their respective departments. Both of them are not satisfied with their subordinates. They tried to ascertain when the employees got their full salaries, what problem they had in working honestly. After investigating for some days, they arrived at the conclusion that there was lack of motivation in their company. Both held a meeting together in order to find out the solution of the problem. Nancy suggested participation of the employees in the Company’s profits, which she thought would create in the employee’s the feeling of belongingness to the company. Such a feeling, she was of the view, would have a direct influence on their performance level. Poonam, on the basis of her experience, said that if the feeling of job security was aroused in the employees, there could be improvement in their performance level. Both of them contacted their Chief Executive Officer-CEO with their suggestions. All the three of them deliberated over this issue. The CEO listened to them very attentively. He said,” Both of you are right, but I too have a suggestion. If the employees
are made participants in taking decisions, they will feel good and their performance level will improve”. Ultimately, the company implemented the suggestions of all the three of them. In the above paragraph, three different persons have spoken about the three methods of motivation. Identify these methods and explain.
Answer: (1) Nancy gave the suggestion of profit Sharing.
Profit Sharing.
Poonam gave the suggestion of job Security.
Job Security.

Question. Mr jay prakash Gupta is the General Manager of “Bhagwati Udyog Pvt. Ltd.”
With a view to running his business in a careful manner, he divided all the activities into seven departments. These departments were: Purchase, Marketing, Production, Personnel, Finance, Accounting and Correspondence. Later on, he realized that accounting and correspondence department can be merged into finance department.
Thus, all business activities were divided into five departments. Mr Gupta is now thinking on the lines as to which are the departments, out of these five that will have significant role in the success of the business. After complete analysis, he concluded that marketing, production and finance were the department on which success of the business depended. It meant that every of some shortcoming occurred in the departments of purchase and personnel, it would not affect much the success of the business.
Thereafter, Mr Gupta determined deviation tolerance limits of these three main departments. It meat that if deviation of these departments remains within this tolerance limit, them it will be looked after by the concerned manager. However, in case the deviation is beyond this limit then the same will be brought to the notice of General Manager.
(a) Identify two functions of the management referred in the above paragraph.
(b) Describe the relevant concepts of identified functions. 
Answer: (a) Organizing and Controlling.
(b) (i) Concept related to Organizing Under it, second step of organizing process i.e., Departmentalization, has been described.
(ii) Concept related to Controlling Following two concepts related to controlling have been described:
• Critical point Control
• Management by Exception.

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