GSEB Class 12 Organization of Commerce and Management Solutions Chapter 5 Staffing

1. Select the correct alternative and write answer to the following questions :

 

Question 1. Employee are ______ for business.
(A) equal to capital
(B) responsibility
(C) strength
(D) invaluable assets
Answer: (D) invaluable assets
In simple words: Employees are considered very important and valuable to a business, much like assets that cannot be easily replaced or valued in money.

Exam Tip: Understand the different categories of assets a business has and how human resources are specifically classified.

 

Question 2. The main function of Human Resource Management is
(A) Increase in sales
(B) Quality control
(C) Man power planning
(D) Production
Answer: (C) Man power planning
In simple words: The primary role of Human Resource Management is to plan and manage the number of people needed in an organization.

Exam Tip: Human Resource Management focuses on people-related aspects, so look for options that directly relate to managing personnel.

 

Question 3. First step or stage of the selection process is
(A) Receiving and screening of applications
(B) Preliminary meeting and welcome
(C) Personal interview
(D) Employment test
Answer: (B) Preliminary meeting and welcome
In simple words: The first part of choosing a new employee involves an initial meeting to greet and introduce them to the company.

Exam Tip: Remember that the very first interaction often involves a basic welcome and initial check, even before detailed application screening begins.

 

Question 4. The procedure up to obtaining candidates' application is
(A) Recruitment function
(B) Ordinary function
(C) Advertisement function
(D) Scection function
Answer: (A) Recruitment function
In simple words: The process of getting people to apply for a job is called recruitment.

Exam Tip: Distinguish between recruitment (attracting applicants) and selection (choosing among them).

 

Question 5. Which test decides the ability of the candidate?
(A) IQ test
(B) Aptitude test
(C) Psychological test
(D) Trade test
Answer: (D) Trade test
In simple words: A trade test is used to check if a job candidate has the practical skills needed for a specific job.

Exam Tip: A "trade test" specifically measures practical, hands-on ability for a particular occupation.

 

Question 6. Selection procedure for non-managerial staff is
(A) difficult
(B) short and simple
(C) expensive
(D) long and special
Answer: (B) short and simple
In simple words: The process of choosing employees who are not managers is usually quick and straightforward.

Exam Tip: Selection processes are often simpler for non-managerial roles compared to executive positions, which involve more complex assessments.

 

Question 7. Which type of function of management is staffing?
(A) Productive
(B) Objective oriented
(C) Managerial
(D) Administrative
Answer: (D) Administrative
In simple words: Staffing is a part of the administrative functions of management, dealing with how personnel are handled.

Exam Tip: Staffing is a fundamental part of the administrative aspect of management, as it involves organizing and managing human resources.

 

Question 8. ______ is the second step after recruitment.
(A) To give promotion
(B) Selection
(C) Training
(D) Transfer
Answer: (B) Selection
In simple words: After finding potential candidates (recruitment), the next step is to choose the best ones (selection).

Exam Tip: Remember the typical sequence of human resource functions: recruitment first, then selection, followed by training and development.

 

Question 9. Which test is conducted to know the nature and self-confidence of the employee?
(A) IQ test
(B) Trade test
(C) Aptitude test
(D) Psychological test
Answer: (D) Psychological test
In simple words: A psychological test is used to understand a person's personality, confidence, and general outlook.

Exam Tip: Psychological tests delve into personality traits, emotional stability, and self-confidence, unlike IQ or trade tests which focus on specific abilities or skills.

 

2. Answer the following questions in one sentence each :

 

Question 1. Give the full forms of: IIM, IIT, HRM
Answer: IIM - Indian Institute of Management, IIT - Indian Institute of Technology, HRM - Human Resource Management.
In simple words: IIM means Indian Institute of Management, IIT means Indian Institute of Technology, and HRM stands for Human Resource Management.

Exam Tip: When providing full forms of acronyms, ensure each word is spelled correctly and accurately reflects the original name.

 

Question 2. What is an organization without staff compared to?
Answer: An organization without staff is compared to a skeleton.
In simple words: An organization without employees is like a skeleton, lifeless and unable to function.

Exam Tip: Use vivid comparisons like "skeleton" to emphasize the critical role of staff in an organization's functioning.

 

Question 3. State the names of various types of tests conducted for selection process.
Answer:
1. IQ test,
2. aptitude test
3. trade test, and
4. psychological test.
In simple words: For selecting employees, companies use different tests such as IQ tests, aptitude tests, trade tests, and psychological tests.

Exam Tip: When listing types of tests, remember to include a variety that covers intelligence, potential, specific skills, and personality.

 

Question 4. Which is the base of the selection process?
Answer: The base of selection process is size of the organization, type of organization, and kind of employees required.
In simple words: The selection process depends on how big the company is, what kind of company it is, and what type of employees are needed.

Exam Tip: The foundation of any selection process is shaped by the specific needs and characteristics of the organization itself.

 

Question 5. State the reasons for recruitment.
Answer: The reason for recruitment to take place is when new enterprise is established, or when an existing firm is expanded or when an employee resigns or dies or retires.
In simple words: Recruitment happens when a new business starts, an old one grows, or an employee leaves, dies, or retires.

Exam Tip: Focus on events that create a need for new personnel when explaining the reasons for recruitment.

 

3. Answer the following questions in short :

 

Question 1. State the difference between recruitment and selection.
Answer:

In simple words: Recruitment is about finding and attracting many job applicants, while selection is about picking the best one from those applicants. Recruitment encourages people to apply, making it a positive process, while selection filters out unsuitable candidates, making it a negative process.

Exam Tip: Clearly distinguish recruitment as an "attraction" process and selection as a "rejection" process. Use a table format for clarity when asked to differentiate.

 

Question 2. State the internal and external sources of recruitment.
Answer:

• In general terms recruitment can be defined as, "The process of looking for probable employees and making them apply for the job."
• In a broader sense "Recruitment is the process of acquiring at the right time, in the right number, in the right place, persons with the right qualifications.”
• Recruitment is not a one-time job. It keeps on continuing in the organization.
• Recruitment takes place when a new enterprise is established, or when an existing unit is expanded or when an employee resigns, dies or retires.

Sources of Recruitment:
There are two sources of recruitment.
(A) Internal sources
1. Promotion
2. Transfer
3. Friends and relatives of employees
4. Recalling retrenched employees
5. Promotion with transfer
6. Waiting list
(B) External sources
1. Through advertisement
2. Through employment exchange
3. Through educational institutions
4. Through trade unions
5. Through contractors and jobbers
6. Recruitment at the gate
7. Modern methods
In simple words: Recruitment means finding the right people for jobs. It's an ongoing process that happens when a new company starts, an old one grows, or employees leave. Companies find new staff from inside (like promotions) or outside (like ads or schools).

Exam Tip: When listing sources, provide clear, distinct examples for both internal (within the organization) and external (outside the organization) recruitment to show comprehensive understanding.

 

Question 3. What is development?
Answer:

• As contrast to training, development is an organized activity in which the manpower learns and grows through self-assessment. It is a type of educational process which develops the personnel over a period of time.
• The concept of development is more applicable to the higher level and top level management.
• Top level management and departmental heads perform more of intellectual work than physical work. Like workers, they do not work on machines. They play roles of leaders who lead the workers, manage them, motivate them and take out work from them. So, their training needs are different. Hence, they need different kind of training or say development.
• The objective of this training is to increase their mental ability and their efficiency in taking policy decisions and leading the organization in more and more efficient way. Such development trainings make them experts in technical knowledge which then help in them in making strategic plans and policies. This type of training is called officer development.
• The modern world industries are developing very fast. The managers need to remain in line with these developments so that they can stay well in the competition. So to enhance the ability of top level management, the organization undertakes development-oriented programs.
• Development is the process of imparting theoretical and practical knowledge to top-level management and departmental heads.
• The term development refers to a program which helps to achieve the predefined objectives of the organization by improving the capabilities of heads (officers).

In simple words: Development is an organized learning process for employees, especially for managers, that helps them grow over time. It aims to improve their thinking skills, knowledge, and leadership abilities so they can make better decisions and help the company succeed in a changing world.

Exam Tip: Highlight that "development" is broader than "training," often focused on long-term growth for higher-level employees, including strategic thinking and decision-making.

 

Question 4. What is recruitment?
Answer:

• In general terms recruitment can be defined as, “The process of looking for probable employees and making them apply for the job."
• In a broader sense "Recruitment is the process of acquiring at the right time, in the right number, in the right place, persons with the right qualifications.”
• Recruitment is not a one-time job. It keeps on continuing in the organization.
• Recruitment takes place when a new enterprise is established, when an existing unit is expanded or when an employee resigns, dies or retires.

Sources of Recruitment:
There are two sources of recruitment.
(A) Internal sources
1. Promotion
2. Transfer
3. Friends and relatives of employees
4. Recalling retrenched employees
5. Promotion with transfer
6. Waiting list
(B) External sources
1. Through advertisement
2. Through employment exchange
3. Through educational institutions
4. Through trade unions
5. Through contractors and jobbers
6. Recruitment at the gate
7. Modern methods
In simple words: Recruitment is the process of finding and attracting qualified people to apply for job openings in an organization. It's an ongoing activity driven by business growth or employee departures, using internal methods (like promotions) and external ones (like advertisements or educational institutions).

Exam Tip: Define recruitment clearly as the process of attracting applicants and then systematically list both internal and external sources with brief examples for each.

 

Question 5. Give the meaning of training.
Answer:

• "Training means providing theoretical and practical knowledge with reference to the work of the employees.”
• As stated by an expert, "Training means giving up-to-date information about the organization and also to increase efficiency, skill, aptitude, attitude and technical skill of the employees.”
• In short "Training means imparting knowledge and education with the objective of gaining proficiency in the business.”

In simple words: Training means giving employees the knowledge and skills they need to do their jobs better. It includes both classroom learning and hands-on practice, aiming to improve their efficiency, abilities, and overall performance in the company.

Exam Tip: When defining training, emphasize its dual nature (theoretical and practical) and its direct goal of improving current job performance and proficiency.

 

Question 6. Name the stages of the process of selection.
Answer: Steps of process of selection:
1. Welcoming and primary meeting.
2. Receiving and screening of applications
3. Taking necessary tests:
• IQ test
• Aptitude test
• Trade test
• Psychological test
4. Personal interview
5. Checking references
6. Preliminary selection
7. Physical (Medical) examination
8. Appointment letter
9. Induction into the organization and allotment of work
In simple words: The selection process involves several stages: first, a welcome meeting, then collecting and checking applications. Next, candidates take various tests like IQ, aptitude, trade, and psychological tests. After that, there's a personal interview, reference checks, an initial selection, and a medical exam. Finally, the chosen candidate receives an appointment letter and is introduced to the organization and their duties.

Exam Tip: List the steps of the selection process in a clear, sequential order, including key tests and the final stages of appointment and induction.

 

Question 7. Explain the term 'waiting list'.
Answer: Waiting list:

• Waiting list is the list of candidates who had applied in the past but were not appointed in the organization. Such a list is useful for future recruitment.
• Since, the applicant of the waiting list was thoroughly screened and tested, the organization can save time and money to spend again on advertisement and the entire recruitment procedure.
• The organization can pick the best candidates from the waiting list if they are still available and fill the vacant posts.

In simple words: A waiting list is made up of job applicants who were previously interviewed and tested but not hired. It helps the company save time and money when they need to fill new positions later, as they can choose from pre-qualified candidates.

Exam Tip: Define "waiting list" by explaining who is on it, why they are there, and the benefits it offers to the organization for future hiring needs.

 

Question 8. Staffing is not merely an employee welfare activity, Why?
Answer:

• Although one of the key objectives of staffing is to recruit and select personnel, train and develop them and look after their welfare, there are several other important aspects that staffing looks after.
• Staffing acquires the right employees and makes the best use of them to achieve the business goals.
• Appropriate staff brings dynamism in all the makes all the activities of an organization.
• Other managerial functions like planning, organizing, directing, co-ordinating and controlling are closely related with staffing.
• Moreover, staffing is an expensive process and the expense is in recurring form.
• Thus, staffing is not merely an employee welfare activity.

In simple words: Staffing is more than just caring for employees because it focuses on getting the right people, using their talents to reach company goals, and making the organization active. It's also linked to other management tasks and costs a lot of money, showing it's a vital business function, not just a welfare one.

Exam Tip: To answer why staffing is more than welfare, emphasize its strategic role in achieving business objectives, its connection to other management functions, and its significant cost implications.

 

Question 9. What can be known through IQ and aptitude tests?
Answer:
1. IQ test: IQ test assess the common sense, memory, smartness, power of decision making and thinking capacity, etc.
2. Aptitude test: Aptitude test assesses whether the candidate is interested in the work for which he is hired.
In simple words: IQ tests show how smart someone is, how well they remember things, and their ability to think and make decisions. Aptitude tests check if a candidate is genuinely interested in and suited for the specific job they're applying for.

Exam Tip: Clearly differentiate between IQ (general intelligence, reasoning) and Aptitude (potential for a specific job/skill) when explaining these tests.

 

Question 10. What can be known through trade test and psychological tests?
Answer:

• Trade test: The trade test decides if the candidate has the necessary skills to perform the expected job or not.
• Psychological test: This test is meant to know about the nature, self-confidence, attitude and habits of the candidate.

In simple words: A trade test checks if a person has the real-world skills for a job, while a psychological test reveals a candidate's personality, confidence levels, mindset, and work habits.

Exam Tip: Remember that a trade test directly measures practical abilities, whereas a psychological test explores personality and behavioral traits.

 

4. Answer the following questions in brief :

 

Question 1. Write a note on staffing as a part of Human Resource Management.
Answer:

• In modern days, the staffing department is known as the Human Resource Department (HRD).
• All the activities of staffing that the HRD does are together also called Human Resource Management (HRM).
• The concept of HRM is broader even than staffing.
• Staffing includes recruitment, selection and training. It also includes providing materialistic facilities, progressive wage system and taking care of welfare of employees. Over and above all these activities of staffing, the Human Resource Management also does the activities for growth and development of personnel.
• Thus, Human Resource Management is the process of planning for recruiting necessary staff and developing it for achieving objectives of the enterprise.
• In these days of global competition, the importance of human resource has increased tremendously.
• Over and above maintaining the other factors of production properly, the organization can achieve great success if it gives proper recognition to the loyalty and efficiency of the staff and provide them satisfaction, motivation and care.

In simple words: Staffing is a key part of Human Resource Management (HRM), which is now often called the Human Resource Department (HRD). HRM is a wider concept that covers all staffing activities like hiring, selecting, and training employees, along with providing benefits, fair wages, and caring for their overall well-being and growth. It's crucial for planning, developing staff, and helps companies succeed in a competitive world by valuing and motivating their employees.

Exam Tip: Emphasize that HRM is a comprehensive approach that includes staffing but extends beyond it to encompass overall employee well-being, development, and strategic alignment with organizational goals.

 

Question 2. State the difference between Training and Development.
Answer:

In simple words: Training is a short-term process focused on teaching employees practical skills for their current jobs to boost efficiency, usually for lower-level staff. Development, however, is a long-term, more expensive process aimed at enhancing the overall abilities, personality, and career potential of top and middle management to prepare them for future challenges and leadership roles.

Exam Tip: When differentiating, emphasize that training is for current job performance and lower-level staff, while development is for future roles, overall growth, and higher-level management. Using a table helps in clear comparison.

 

Question 3. "An efficient staff is an invaluable asset.” Explain the statement.
Answer:

• Appropriate and efficient staff brings dynamism in all the makes all the activities of an organization.
• If the employees are efficient and if the organization can satisfy their needs, then the employees can become the driving force of the organization.
• An efficient staff by making correct use of other factors of production can accomplish the objectives of business successfully.
• Efficient staff can increase the quality of production. Moreover, their efficiency can lead to higher productivity and reduced wastage.
• Thus, efficient staff is an invaluable asset.

In simple words: An efficient staff is like a priceless possession because they make the organization dynamic and drive its success. When employees are skilled and their needs are met, they become highly motivated. They boost productivity, reduce waste, improve product quality, and help the business achieve its goals by effectively using resources.

Exam Tip: To explain why efficient staff is an "invaluable asset," focus on their contributions to productivity, quality, goal achievement, and overall organizational dynamism.

 

Question 4. "Staffing is like the different limbs of the organization." Explain the statement.
Answer:

• Planning is considered the brain of organization and management. But once the planning is done it needs to be executed too.
• The job of execution is taken care by the staff. It is staffing that performs all the planned activities.
• Staff does the production and also increases the productivity.
• Without staff, the organization is a dead organization in which no activity can take place.
• Thus, staffing is like the different limbs of the organization.

In simple words: If planning is the brain of an organization, then staffing represents its limbs. Just as limbs carry out the body's movements, staff members perform all the planned activities, handle production, and boost productivity. Without an active and capable staff, an organization cannot function and remains inert.

Exam Tip: Use the analogy effectively: link planning to the "brain" and staffing to the "limbs" to illustrate how staff are essential for executing plans and making the organization active.

 

Question 5. "Training is expensive but its absense is more so." Explain the statement.
Answer:

• Small companies hire trainers and pay for their training fees, accommodation, conveyance, etc.
• Large organizations set-up a separate training department. They appoint/special officers who provide training to. new employees.
• The organization has to incur huge expenses on all these training activities.
• On the brighter side, training improves the efficiency of the employees. It makes them more productive.
• Better trained personnel save resources such as raw material, time, energy and effort. These savings lead to indirect earnings to the organization.
• Training increases morale and motivation of the employees.
• They become more loyal towards the organization and their turnaround rate reduces.
• Absence of training can lead to losses of all these benefits. Hence, it is said that although training is expensive, its absence is more so.

In simple words: While providing training can be costly due to fees, facilities, and staff, not training employees can be even more expensive in the long run. Trained staff are more efficient, productive, motivated, and loyal, which reduces waste, saves resources, and increases overall profit. Without training, companies risk lower quality, higher costs, decreased morale, and losing employees, making the lack of training a greater financial burden.

Exam Tip: To explain this statement, first acknowledge the direct costs of training, then elaborate on the much larger indirect costs and lost opportunities that arise from a lack of training.

 

5. Answer the following questions in detail :

 

Question 1. Explain the meaning and characteristics of staffing.
Answer:

• The process of recruitment i.e. acquiring employees for the work and training and maintaining them in the organization is called staffing.
• In general terms, staffing refers to just recruitment. But, the concept of staffing is much broader and it includes all the activities of selection, training, promotion, transfer and post-retirement activities.

Characteristics of staffing:
1. Important function of management:
Just like planning, organizing, directing, co-ordinating and controlling, staffing is also one of the important functions of management.
2. Perennial process:
Organization cannot exist without employees. As long as organizational activities exist, employees and staffing will also exist.
3. Related to human relations:

• The main objective of staffing is to acquire the right employees and make the best use of them to achieve the business goals.
• Out of all the factors or production, employees are the only one in living form. Humans have feelings, emotions and self-respect.
• Since staffing is related with human element, humanitarian behavior is expected towards them when they are made to work in the organization.

4. Staffing is a dynamic process:
Appropriate staff brings dynamism in all the activities of an organization.
5. Related with other managerial functions:
Other managerial functions like planning, organizing, directing, co-ordinating 'and controlling are closely related to staffing.
6. Wide scope:
Staffing has a very wide scope and it does not end just at recruitment. It takes care of labour welfare, training and maintaining personnel and also working for their development.
7. Capital expenditure (Investment):
The expenditure incurred for recruitment, selection, training and development of the staff is not an expense but an investment.
In simple words: Staffing means finding, hiring, training, and keeping employees in an organization. It's a broad process that goes beyond just hiring and includes managing promotions, transfers, and even post-retirement tasks. Key characteristics are that it's a vital part of management, an ongoing process because companies always need people, and it heavily involves human relations, requiring fair treatment. Staffing is also a dynamic process, connected to other management tasks, has a wide scope covering employee well-being and development, and is considered an investment rather than just an expense.

Exam Tip: Provide a comprehensive definition of staffing, highlighting its broader scope beyond mere recruitment. When describing characteristics, use clear headings and concise explanations for each point.

 

Question 2. Explain the importance of staffing.
Answer: Importance of staffing:
1. Driving force:

• If the employees are efficient and if the organization can satisfy their needs, then the employees can become the driving force of the organization.
• An efficient staff by making correct use of other factors of production can accomplish the objectives of business successfully.

2. Dynamic activity:
Staffing infuses dynamism into business and helps to perform all the business activities.
3. Important for other functions of management:
Other managerial functions like coordinating, directing, controlling, planning, etc. cannot succeed without proper staffing.
4. Limbs of business enterprise:
Planning is the brain of management and enterprise while staffing is like the limbs. Without the limbs the body i.e. the enterprise cannot do any activity.
5. Job satisfaction among staff:

• Staffing helps to listen the complaints and problems of the employees. This then helps to bring solution to their problems speedily.
• If the planning and distribution of work is done properly than the employees become more satisfied with their jobs. As a result their efficiency increases.

6. Harmony in relations:
If staffing is done right, it can create a harmonious and satisfying environment between the employees and employees and employers of the organization.
7. Increases prestige of the organization:
A contented and efficient staff is an invaluable asset. It increases the prestige of the organization.
8. Continuous process:
Business cannot exist without staff. As long as business activities continue, staff and staffing process will also continue.
In simple words: Staffing is very important because it acts as the driving force of an organization by ensuring efficient and satisfied employees who can achieve business goals. It makes the company dynamic and is essential for all other management functions, just as limbs are vital for a body to move. Proper staffing also leads to job satisfaction, better relationships between employees and management, and enhances the organization's reputation. Moreover, it's an ongoing process, as a business always needs staff to operate.

Exam Tip: When explaining the importance of staffing, categorize your points (e.g., impact on employees, impact on organization, impact on other functions) and use strong examples or analogies to clarify each point.

 

Question 3. What is recruitment? Discuss in detail the internal and external sources of recruitment.
Answer: In general terms, recruitment can be defined as, "The process of looking for probable employees and making them apply for the job." In a broader sense, "Recruitment is the process of acquiring at the right time, in the right number, in the right place, persons with the right qualifications." Recruitment is not a one-time job; it keeps on continuing in the organization. Recruitment takes place when a new enterprise is established, when an existing unit is expanded, or when an employee resigns, dies, or retires.
There are two sources of recruitment. Depending upon the need of the organization and situation, recruitment is done from any of these sources.
(A) Internal sources:
1. Promotion
2. Transfer
3. Friends and relatives of employees
4. Recalling retrenched employees
5. Promotion with transfer
6. Waiting list
**Explanation of Internal Sources:**
1. Promotion: When a post in the organization becomes vacant, it can be filled by promoting an existing staff member after considering his work, ability, honesty, skill, loyalty, and qualifications. Promotion of employees boosts morale and loyalty of the staff. Moreover, promotion also results in increased salaries, status, power, and responsibility.
2. Transfer: In case of shortage of staff at a particular location or department, a staff member from a location or department having surplus staff can be transferred on the basis of his suitability and qualifications.
3. Friends and relatives of employees: Whenever a vacancy comes up in an organization, the management asks employees to recommend their qualified friends and relatives for the post. The applications are called from such interested candidates and are screened, interviewed, and if all goes well, they are recruited. This form of recruitment helps to boost the morale of the employees and make them feel proud to be a part of the recruitment process.
4. Recalling retrenched employees: Retrenchment of employees is the process of removing employees from the organization in case they are surplus or to cut down organizational costs. The organization can invite former employees who were retrenched because of some or other reasons, or employees who have left the organization and joined elsewhere voluntarily, to rejoin.
5. Promotion with transfer: Under this system, the organization provides promotion along with transfer and transfers employees to a different location on the basis of their efficiency, experience, and loyalty. For example, an employee can be transferred along with promotion to his native place or any other place of his choice. This will boost the morale and enthusiasm of the employees. Since, in many cases, employees do not prefer transfer, giving them promotion and then transferring them is a way to keep their morale high.
6. Waiting list: Waiting list is the list of candidates who had applied in the past but were not appointed in the organization. Such a list is useful for future recruitment. Since the applicant on the waiting list was thoroughly screened and tested, the organization can save time and money that would be spent again on advertisement and the entire recruitment procedure. The organization can pick the best candidates from the waiting list if they are still available and fill the vacant posts.
(B) External sources:
1. Through advertisement
2. Through employment exchange
3. Through educational institutions
4. Through trade unions
5. Through contractors and jobbers
6. Recruitment at the gate
7. Modern methods
**Explanation of External Sources:**
1. Through advertisement: Advertisement is an effective way for recruitment. The organization releases advertisements in newspapers, business journals, and periodicals for specific posts and invites applications from qualified candidates. The organizations also put such advertisements on the internet, TV, or websites. The candidates that come across such advertisements can apply online. Through advertisement, the organization can receive a very large number of applications from distant corners of the country. This helps to choose the right candidate from a large pool of applicants.
2. Through employment exchange: Unemployed people register themselves in public and private employment exchanges. These exchanges prepare a database of all such people. The database contains details such as name, address, qualifications, experience, skills, etc. The organizations can approach these employment exchanges and obtain the list of candidates that can fit into the job. The organizations then contact suitable candidates and call them for recruiting.
3. Through educational institutions: In modern times, many enterprises visit colleges and universities and ask them to arrange a campus interview. Campus interviews are held by colleges and universities themselves, wherein they invite various organizations to visit their campus and conduct interviews and select the student as a future candidate. Such placement camps are arranged every year at various institutes like Indian Institute of Management (IIM) and Indian Institute of Technology (IIT) and also at several colleges and universities.
4. Through trade unions: Most of the workers are members of trade unions. Trade unions maintain the list of these employees working in the organization. The organizations can contact these trade unions and take the list of such employees that are either removed or have left the organization. They can then contact them if they are available for the job. The concept of trade unions is quite popular in textile industries, mining industries, etc.
5. Through contractors: There are certain employment contractors who mainly supply unskilled laborers to the organizations. The business enterprise makes a contract with such contractors wherein the contractor takes the responsibility to supply the workers to the enterprise. The contractor is in constant contact with various types of laborers. He recommends these workers to the enterprise as and when the enterprise asks for. This practice is quite popular for workers working in construction industries, mining industries, tea plantation, etc. This is an informal channel of recruitment, and so there are chances that the contractor or the enterprise or both together exploit the worker.
6. Recruitment at the gate: Workers can be recruited by business enterprises by placing a notice at the factory gate. This method is more suitable for daily wages.
7. Modern method: Modern method is mostly suitable for recruitment of skilled employees. In modern times, a very large amount of recruitment is done through the internet. Search portals such as naukri.com, monster.com, etc., are internet companies that provide a facility to candidates to register their bio-data on these web-portals. This database is then shared with the business enterprises worldwide. Whenever the enterprise needs to fill a post, it contacts the candidates registered on these websites. Moreover, the candidates can also directly apply to the company from the company's website. This tool is very fast, quite effective, and has very wide reach. Under the modern method, various procedures of recruitment such as application, exams (tests), results, and appointments can be done. If the candidate is well-versed with computers, he can take tremendous benefit from this source of recruitment.
In simple words: Recruitment is finding and attracting people for jobs. It has two main sources: internal (within the company) and external (outside the company). Internal sources include promotions, transfers, recalling old employees, or using a waiting list of previous applicants. External sources include advertisements, employment exchanges, educational institutes, trade unions, contractors, direct recruitment at the factory gate, and modern online methods. Each method has its own benefits for finding suitable candidates.

Exam Tip: When discussing recruitment, always start with a clear definition, then systematically list and explain both internal and external sources with relevant examples for each.

 

Question 4. Explain the selection procedure.
Answer: The process (steps) of selection:
1. Welcoming and primary meeting: When the candidate arrives at the enterprise, he is welcomed by the receptionist. The receptionist then makes the primary investigation. If the candidate is found suitable/eligible, he is given an appointment with the recruitment officer. The recruitment officer then gathers information about the knowledge, education, skill, and working capability of the candidate. The main objective at this stage is to ensure that only proper candidates are sent further for applying for the job. If the candidate is found suitable in the primary meeting, he is asked to fill the application form. This saves the time of the recruitment officer, and the process becomes simpler too.
2. Receiving and screening of applications: The candidate, along with the application, submits various documents such as bio-data, copies of mark sheets, experience certificates, and other certificates. The enterprise screens these applications and documents. The ones that are found faulty or incorrect are rejected.
3. Taking necessary tests: After shortlisting candidates based on their applications, the enterprise arranges various tests for these candidates. Every enterprise conducts tests in its own way. The number, difficulty level, and way of conducting tests vary among organizations. These tests help the enterprise to identify the mental ability, skill, aptitude, efficiency, etc., of the candidate.
The major types of tests are:
1. IQ test: IQ tests assess common sense, memory, smartness, power of decision-making, and thinking capacity.
2. Aptitude test: Aptitude tests assess whether the candidate is interested in the work for which he is hired.
3. Trade test: Trade tests decide if the candidate has the necessary skills to perform the expected job or not.
4. Psychological test: This test is meant to know about the nature, self-confidence, attitude, and habits of the candidate.
4. Personal interview: Candidates who succeed in the above tests are called for a personal interview. To remove any bias or preferences, the enterprise forms a selection-cum-recruitment committee for interviewing the candidates. The interviewing committee consists of representatives of the management, the departmental head, the personnel manager, and experts from various fields. These people perform a proper work-related interview. They stick to this agenda and do not deviate. They also clarify the terms and conditions of the job to the candidate.
5. Checking references: To know the present and past work-related situation of the candidate, the business enterprise checks and enquires from the candidate's present and past employers. This is done to know whether the information provided by the candidate is correct or not. This also helps to obtain the right opinion about an employee before finalizing him.
6. Preliminary selection: If the matters gathered from personal interview and past references are positive, the selection committee will make a list of selected candidates. This list usually includes more candidates than required. These candidates are also called short-listed candidates.
7. Physical (Medical) examination: After preliminary selection of the required candidates, they are sent to a specified hospital or doctor for medical examination. The main objective of this examination is to know whether the candidate is suffering from any serious illness or any other physical problem. Serious or major illness can decrease the efficiency of the candidate and hence will affect the productivity of the organization. The other employees are kept on a waiting list. In the future, if the organization needs more candidates, it can select from this list.
8. Appointment letter: Once the candidate passes all the tests and interviews, he is given the appointment letter. The appointment letter contains details regarding the nature of work, workplace, designation, rights and responsibilities, remuneration, and other financial and non-financial details.
9. Induction into the organization and allotment of work: In modern organizations, after giving the appointment letter and before the allotment of duties, employees are given information regarding the policies of the organization, organizational environment, superiors, colleagues, and subordinates. In other words, the to-be employees are introduced to the organization. This is called induction.
In simple words: The selection procedure involves several steps to find the best candidate for a job. It starts with welcoming and a primary meeting, then receiving and screening applications. Next are necessary tests like IQ, aptitude, trade, and psychological tests. This is followed by a personal interview, checking references, preliminary selection, and a physical medical examination. Finally, an appointment letter is issued, and the new employee undergoes induction into the organization before work allotment.

Exam Tip: Remember to list all the key steps of the selection procedure in sequence and briefly explain the purpose of each step, especially the different types of tests.

 

Question 5. Explain the meaning and importance of training.
Answer: Meaning of training:
• "Training means providing theoretical and practical knowledge with reference to the work of the employees."
• As stated by an expert, "Training means giving up-to-date information about the organization and also to increase efficiency, skill, aptitude, attitude, and technical skill of the employees."
• In short, "Training means imparting knowledge and education with the objective of gaining proficiency in the business."
Importance of training:
1. To provide modern information: Training is necessary for providing information to the employees about modern technological changes and research.
2. Safety: It is extremely important to provide safety training. Safety-related training is given to those workers who work on machines. The training modules include safe operation, importance of safety equipment such as helmets, gloves, etc. Safety training improves the ability of machine handling, reduces fatigue, and increases morale.
3. Increases job satisfaction: Training helps employees to understand their work better and ways to improve their efficiency and adopt new methods. This increases their enthusiasm which, in turn, increases their job satisfaction.
4. Reduces labour turnover rate: Training increases the knowledge, skill, and efficiency of the workers. This improves their chances of promotion and earning higher income. When efficiency along with income rises, employees do not think of changing their job and remain loyal to the companies. This reduces the rate of labour turnover.
5. Increase in profit: Training increases production and productivity. This reduces the cost of production and increases profit.
6. Reduction in expenses: Training increases the efficiency of the workers. This increases productivity as well as production and decreases wastage of raw material and time. It also reduces supervision cost. Thus, training reduces production cost.
7. Growth and development of employees: Training increases the skills, knowledge, ability, and intelligence of the employees. This also results in personal growth and development of the employees.
8. Other benefits: Training improves the quality of production. Increased quality enhances the prestige of the organization and reduces stress from sales and complaints. Training creates an environment of cooperation, loyalty, sincerity, and enthusiasm. Absence of training can lead to losses of all these benefits. Hence, it is said that although training is expensive, its absence is more so.
In simple words: Training means teaching employees new skills and knowledge to do their jobs better. It's important because it helps employees stay updated with technology, work safely, feel more satisfied with their jobs, reduces the number of employees leaving, increases profit by making work more efficient and reducing waste, and helps employees grow personally.

Exam Tip: Clearly distinguish between the meaning and importance of training. For importance, focus on both individual employee benefits and organizational benefits like efficiency and cost reduction.

 

Question 6. Give the meaning of development and explain its importance.
Answer: Meaning of development:
• As a contrast to training, development is an organized activity in which the manpower learns and grows through self-assessment. It is a type of educational process that develops personnel over a period of time.
• The concept of development is more applicable to higher-level and top-level management.
• Top-level management and departmental heads perform more intellectual work than physical work. Unlike workers, they do not work on machines. They play roles of leaders who lead the workers, manage them, motivate them, and take out work from them. So, their training needs are different. Hence, they need a different kind of training or say development.
• The objective of this training is to increase their mental ability and their efficiency in taking policy decisions and leading the organization in a more and more efficient way. Such development trainings make them experts in technical knowledge which then help them in making strategic plans and policies. This type of training is called officer development.
• The modern world industries are developing very fast. The managers need to remain in line with these developments so that they can stay well in the competition. So, to enhance the ability of top-level management, the organization undertakes development-oriented programs.
• Development is the process of imparting theoretical and practical knowledge to top-level management and departmental heads.
• The term development refers to a program that helps to achieve the predefined objectives of the organization by improving the capabilities of heads (officers).
Importance of development:
1. Increase in technical knowledge: Although officers do not have to work on machines, with changing business conditions, it is necessary for officers to have technical knowledge because their functions are related to technical aspects. Developmental programs provide guidance (knowledge) to use technical knowledge, machines, and methods, so that correct and positive decisions can be taken for organizations.
2. Research and new ideology: Training increases the efficiency of departmental heads to work at the administrative level by providing them knowledge about new researches and ideologies.
3. Development of the organization: In present times, developmental programs are necessary to help the organization grow at national and even international levels by adopting new changes and strategies.
4. Optimum use of resources: Developmental programs help to make optimum use of available resources. Moreover, training reduces unnecessary expenses, controls the cost of production, and hence increases the profit.
5. Solution to problems: Development programs help in bringing speedy and successful solutions to newly arising problems in the organization.
6. Effective supervision: Development programs enhance the skill of officers involved in technical work. This makes their supervision more effective.
7. Reduces stress: Management and departmental heads often have to face many challenges and problems while managing the enterprise or business. Taking decisions and managing daily operations creates a lot of stress for them. Developmental programs help to reduce this stress.
In simple words: Development means giving managers and top leaders knowledge and skills to grow personally and professionally over time. It is important because it improves their technical knowledge, helps them use new ideas, assists the organization in growing, makes the best use of resources, solves problems quickly, improves supervision, and reduces stress for leaders.

Exam Tip: Differentiate development from training by highlighting its focus on higher-level management and long-term growth. When explaining importance, focus on strategic and managerial benefits.