NCERT Solutions Class 12 Business Studies Chapter 6

NCERT Solutions Class 12 Business Studies Chapter 6 – Staffing

Business Studies is an important subject for students who plan to pursue commerce stream. Extramarks provides NCERT Solutions for Class 12 Business Studies for all chapters. Students in Class 12 can now learn and revise essential points, definitions, and questions and answers from the study material offered by NCERT Solutions Class 12 Business Studies Chapter 6. The NCERT Solution notes and solutions are prepared by subject matter experts who have extensive teaching experience. So students are advised to use NCERT Solutions for last-minute exam preparation and revision.

Staffing – NCERT Solutions for Class 12 Business Studies Chapter 6 are written in simple language with  detailed explanations. Students can access a variety of additional study tools on the Extramarks’ website in addition to the NCERT solutions. Students get access to all study materials, including NCERT books, CBSE revision notes,  sample papers,  past years’ question papers, and so on.


Key Topics Covered In NCERT Solutions Class 12 Business Studies Chapter 6

Following are the key topics covered in NCERT Solutions Class 12 Business Studies Chapter 6- Staffing:

Meaning of Staffing
Need and Importance of Staffing
Staffing as a part of Human Resource Management
Evolution of Human Resource Management
Staffing process
Aspects of Staffing 


Sources of Recruitment
Process of Selection
Training and Development
Benefit of Training and Development
Training methods 

Here’s the detailed information on each subtopic in NCERT Solutions Class 12 Business Studies Chapter 6 Staffing.


Meaning of Staffing

Staffing is a management activity that comprises evaluating candidates’ talents and expertise and assigning them particular jobs based on their skill set to hire people who are a suitable match for the organisation. It is engaged in fulfilling the human resource needs of an organisation. Refer to Extramarks NCERT Solutions Class 12 Business Studies Chapter 6 to get detailed notes on Staffing.


Need and Importance of Staffing

Management’s  staffing department fulfils standards and selects the best individuals for the job. Human resources are the bedrock of any company. The right people can help grow your company, while the wrong people can damage it. As a result, the most fundamental and crucial driver of organisational effectiveness is staffing.

The following benefits to the organisation are ensured by proper Staffing:

  • Assists in the search for and hiring qualified employees for various positions.
  • Puts the appropriate individual in the proper role, resulting in improved performance.
  • Ensures the enterprise’s long-term survival and growth through succession planning for management.
  • Assists in ensuring the most efficient use of human resources. It reduces under-utilisation of people and expensive labour expenses by preventing overmanning. At the same time, it avoids work disturbance by announcing staff shortages ahead of time.
  • Objective evaluation and appropriate compensation for their contributions improve employees’ work happiness and morale.


Get on board with Extramarks and get access to NCERT Solutions Class 12 Business Studies Chapter 6, which will come in handy during your upcoming examination preparation.


Staffing as a part of Human Resource Management

The staffing function generally deals with the human element of management. The most crucial responsibility is to manage an organisation’s human component because the organisation’s effectiveness is dependent on how well this role is fulfilled. The competence, motivation, and performance of an organisation’s human resources have a significant role in its ability to achieve its objectives.

As businesses develop and the number of people employed rises, a new department known as the human resource department emerges, staffed by experts in human resource management. Human resource management is a specialised field that necessitates the skills of a large number of individuals. The number of human resource professionals and the size of this department might also indicate the company’s size. For a large corporation, the Human Resources Department will include specialists for each function of the department..

Human Resource Management entails a wide range of specialised actions and responsibilities that must be fulfilled by human resource specialists.  The responsibilities of the human resource specialists are :

  • The term “recruitment” refers to the process of looking for competent personnel.
  • Analysing occupations and gathering information about them in order to write job descriptions.
  • Compensation and incentive systems are being developed.
  • Employee development and training for improved performance and advancement in their careers.
  • Keeping labour relations and union-management relations in good shape.
  • Taking care of complaints and concerns.
  • Providing for the employees’ social security and well-being.
  • Defending the firm in legal proceedings and avoiding legal entanglements.


Students can register at Extramarks to access various other study materials in addition to NCERT Solutions Class 12 Business Studies Chapter 6.


Evolution of Human Resource Management

Resource management has replaced the conventional concepts of labour welfare and people management. Human Resource Management (HRM) as we know it today is the result of a series of crucial interconnected advances dating back to the Industrial Revolution.

Thousands of people were working under one roof once the factory system was introduced. One individual was given the task of hiring employees for the organisation, and he was then given the duty of personnel recruitment, selection, and placement.

According to the human relations approach, the human component is seen as the most crucial tool of success in an organisation. On the other hand, rapidly evolving technology innovations needed new skill development and personnel training. People began to be seen as a precious resource that could be exploited further. As the scope of the job grew, the personnel manager was replaced by a human resource manager.

As a result, Staffing is an integral aspect of human resource management since it involves the process of locating, assessing, and forming a working relationship with individuals for a specific purpose.

It’s important to recognise that Staffing is both a management function, similar to planning, organising, directing, and controlling, and a distinct functional area of management, similar to marketing and finance management.

Get on board with Extramarks and get access to NCERT Solutions Class 12 Business Studies Chapter 6, which will come in handy during your upcoming examination preparation.


Staffing process

The staffing function is the primary focus in the management process is the timely fulfilment of an organisation’s workforce requirements. Refer to Extramarks NCERT Solutions Class 12 Business Studies Chapter 6 for details on the Staffing process.

It is essential to consider Staffing as a process that begins with an awareness of the organisation’s manpower needs and identifying viable sources for meeting those needs, either within or outside.

 These steps are summarised in a short and concise manner below:  

  • Estimating Manpower Requirements: One might be aware of analysing the decisions and decision-making levels, activities, and their relationships while developing the organisational structure in order to evolve the horizontal and vertical dimensions of the structure. As a result, a variety of work roles are established. Clearly, each position requires the appointment of a person with a particular set of educational credentials, talents, and prior experience, among other things. As a result, understanding manpower  entails knowing how many people a company will require and what kind of manpower it demands. 
  • Recruitment: Recruitment may be described as the process of locating potential workers and encouraging them to apply for positions inside the organisation. The information gathered throughout the job description and applicant profile writing process may be utilised to construct the ‘situations vacant’ advertisement. This stage includes discovering a possible candidate or determining potential candidate sources. The important aim is to build a pool of potential employment prospects.
  • Selection: Selection is the process of picking from a pool of potential job candidates that has been formed during the recruitment stage. Even in highly specialised jobs where the choice space is very limited, the rigour of the selection process serves two important purposes: (i) it ensures that the organisation gets the best among the available, and (ii) it boosts the self-esteem and prestige of those chosen and conveys to them the seriousness with which the organisation conducts its business. Those who pass the exam and interviews are given an employment contract, a written agreement containing the offer of employment, the terms and conditions, and the start date.
  • Training and Development: To ensure that their employees continue to learn, organisations either have in-house training centres or have formed alliances with training and educational institutes. In turn, the organisation’s to benefit in turn. . When employees are motivated, their skills are reinforced, they perform better, and they contribute more to the effectiveness and efficiency of the organisation.
  • Performance Appraisal: After employees have completed their training and have been on the job for a long time, it is necessary to assess their performance. The word “performance assessment” refers to assessing an employee’s current and/or previous performance against a set of preset criteria. As a result, defining the task, evaluating performance, and delivering feedback will all be part of the performance assessment process.
  • Promotion and Career Planning: It is becoming increasingly important for all businesses to handle career-related concerns and opportunities for their employees.

Managers must also plan activities that benefit the long-term interests of their staff. Promotions are an important element of a person’s professional life. They relate to being assigned to positions with more responsibilities.

  • Compensation: Wage and salary plans must be established by all organisations for their employees. Different compensation plans can be prepared in a variety of ways, depending on the value of the task. As a result, compensation refers to any type of income or benefits given to employees. It can take the form of direct cash payments such as wages, salaries, incentives, commissions, and bonuses, as well as indirect payments such as employer-paid  health insurance and vacations.

Students can register at extramarks to access various other study materials in addition to NCERT Solutions Class 12 Business Studies Chapter 6.



The process of seeking potential candidates for a position or a role is referred to as recruitment. It’s been defined as “the process of locating potential employees and encouraging them to apply for positions within a company.” Advertising is a typical aspect of the recruiting process. It may take place in a variety of ways, including newspapers, newspapers dedicated to job advertising, professional publications, advertisements posted in windows, a job centre, campus interviews, and so on—Extramarks NCERT Solutions Class 12 Business Studies Chapter 6 for detailed topic wise notes on Recruitment.


Sources of Recruitment

Recruitment is the process of locating and recruiting competent individuals for a position. In other words, it is the process of discovering and encouraging potential applicants to apply for a job. The following are the two most significant sources of recruiting:

  • Internal sources: Internal sources of recruiting are those that originate from within the company. That is, jobs are filled with internal resources from within the organisation. Promotions and transfers are two instances. A suitable worker from another department of the business is transferred to the concerned department to fill the position of a given profile. Similarly, the organisation’s higher-level employment vacancies are filled by promoting lower-level personnel.
  • External Sources: External recruitment sources are those that originate from outside the company. Jobs are filled by bringing in new individuals from outside the company. Other sources are explored to locate new talent and a wider range of possibilities. For example, ‘direct recruiting,’ which comprises placing a notice board outside the workplace and then following the recruitment procedure on a certain day, is one of the external recruitment sources. Similarly, placement firms work as matchmakers between job seekers and companies, operating as an external source.


Get on board with Extramarks and get access to NCERT Solutions Class 12 Business Studies Chapter 6, which will come in handy during your upcoming examination preparation.


Process of Selection

The process of picking the best candidates from a vast pool of applications is known as selection. It’s a lengthy procedure that includes a series of examinations and interviews. In order to enhance work productivity, the selection procedure seeks to obtain the best out of the recruited pool.

 Following  are the steps involved in the selection process:

  1. Preliminary examination:
  • Based on the information found in the application forms, it supports the manager in weeding out unqualified or unsuitable job applicants.
  1. Tests of Selection:
  • An employment exam is a tool for evaluating various aspects of a person’s personality.
  • These characteristics range from aptitude such as  manual dexterity to intelligence to personality. .
  1. Employment interview:
  • An interview is a formal, in-depth talk done to determine an applicant’s fitness for a position.
  • In such an interview, the individual may also want to learn more about the company.
  1. Background Checks and References:
  •   Organisation requests names, addresses, and phone numbers of references of the applicants for the purpose of verifying references.
  • The purpose is to double-check facts and obtain more information about a candidate.
  1. Decision on Selection:
  • The final applicants must pass the examinations, reference checks and interviews.
  • The reviews of the concerned manager will be taken into account in the final selection because they are accountable for the new employee’s performance.
  1. Medical Exam: 
  • The candidate must pass a physical examination.
  • The job offer is given to the candidate who is declared fit after the medical examination.
  1. Job Offer:
  • Applicants who have overcome all primary barriers will be offered a job.
  • A letter of appointment/confirmation of acceptance is used to make a job offer.
  1. Employment Contract:
  • Candidates must fill out several papers after obtaining the job letter that will be used for future references.
  • An employment contract contains information such as pay, start date and conditions, leave policies, working hours, and allowances, among other things.


Students can register at Extramarks to access various other study materials in addition to NCERT Solutions Class 12 Business Studies Chapter 6.


Training and Development

Training and development is an effort to enhance current or future employee performance by boosting an employee’s capacity to perform via learning, typically by altering their attitude or growing their skills and knowledge.


The Benefit of Training and Development

In any business, training is a significant stage. It is a sort of activity aimed at improving an individual’s skills and talents in order for them to perform a job. It is an essential component of the job that contributes to the growth of an individual’s knowledge. In reaction to changes in the corporate environment, the nature of work has altered. The following are some of the benefits of training for both individuals and businesses.

Benefits to the Employees:

  • Employees’ confidence in their ability to handle a task improves as a result of training. Workplace equipment and machinery will be easy to manage with sufficient training. There will be fewer errors as a result of this.
  • Employees receive training to help them succeed in their jobs. It helps to increase process understanding, which is essential for future growth.
  • A person who has gotten training will be able to make more money than someone who has not.
  • Employees’ self-confidence grows as a result of training, and they are better prepared to confront new problems at work. Increased self-assurance also leads to a higher sense of job satisfaction.


Benefits to the Organisation:

  • Training is a systematic way of teaching procedures. As a consequence, it is more efficient and saves time and money for the company.
  • Employee morale improves as a result of effective training. Employees gain confidence and motivation as a result, which reduces turnover and absenteeism.
  • Individuals profit from training because it improves their efficiency, which leads to increased output. The company’s expansion will be aided by increased staff productivity.
  • Employees benefit from training because it helps them prepare for new challenges and scenarios. It aids in the formulation of a viable strategy for dealing with future problems.


Get on board with Extramarks and get access to NCERT Solutions Class 12 Business Studies Chapter 6, which will come in handy during your upcoming examination preparation.


Training methods 

Training may be done in a variety of ways. These may be divided into two categories: on-the-job and off-the-job ways. On-the-Job approaches are those that are used in the workplace while the person is doing their job. Away from the workplace, off-the-job tactics are applied. The former refers to learning while doing something, whereas the latter refers to learning before doing anything..


On the job methods:

  • Apprenticeship Programs: Apprenticeship programmes place a trainee under the supervision of an experienced worker. These are meant to  improve one’s skills. Apprenticeship training is frequently necessary for anyone intending to enter specialised occupations such as plumbers, electricians, or ironworkers.
  • Coaching: In this style, the superior acts as a coach, guiding and instructing the trainee. . The coach sets upon mutually agreed goals.The trainee works directly with a senior manager responsible for all aspects of the trainee’s training. Traditionally, the trainee is groomed  to take over  the senior manager and relieve him of part of his responsibilities.
  • Internship Training: This is a collaborative training programme between educational institutions and businesses. Selected applicants continue their studies on a regular basis throughout the duration of the programme. They also work in a factory or office to get practical experience and expertise.
  • Job Rotation: In this type of training, the learner is moved from one department to another or from one job to another. This allows the trainee to obtain a more comprehensive grasp of all aspects of the business as well as how the organisation runs as a whole. Job rotation permits trainees to engage with different employees, which helps departments collaborate more effectively in the future.


Off the job methods:

  • Lectures/Conferences  in the Classroom: The lecture or conference format is best suited to communicating specific knowledge, techniques, or approaches.
  • Films: Films may convey information and directly illustrate talents that are difficult to convey using other methods.
  • Case Study: Trainees examine the examples to identify issues, analyse causes, devise alternative solutions, choose the best option, and put it into action.
  • Computer modelling: It models the work environment by programming a computer to mimic some of the realities of the job, allowing for learning without the danger or significant expenses that would be incurred if a mistake  was made in a real-life situation.
  • Employees learn their duties on the equipment they’ll be utilising in the vestibule, which is separate from the actual work environment. Employees utilise the same resources, files, and equipment as in real-life work situations, which are reproduced in a classroom.
  • Programmed Instruction: This strategy involves the pre-planning and suggested learning of specific skills or general information.
  • Vestibule training: Employees learn their duties on the equipment they’ll be utilising in the vestibule, which is separate from the actual work environment. Employees utilise the same resources, files, and equipment as in real-life work situations, which are reproduced in a classroom.
  • Programmed Instruction: This strategy involves the pre-planning and suggested learning of specific skills or general information.


NCERT Solutions Class 12 Business Studies Chapter 6 

Students may refer to various study materials that help them understand the topics in the chapter. To source these materials, they may register on Extramarks. Click on the  links given below  to view NCERT Solutions Class 12 Business Studies Chapter 6: 

Business Studies Class 12 Chapter 6: Very Short Answer Type Questions

Business Studies Class 12 Chapter 6: Short Answer Type Questions

Business Studies Class 12 Chapter 6: Long Answer Type Questions


Students may access NCERT Solutions Class 12 Business Studies Chapter 6 as well as other chapters by clicking here. In addition, students can also explore NCERT Solutions for other classes given below.

  • NCERT Solutions Class 1
  • NCERT Solutions Class 2
  • NCERT Solutions Class 3
  • NCERT Solutions Class 4
  • NCERT Solutions Class 5
  • NCERT Solutions Class 6
  • NCERT Solutions Class 7
  • NCERT Solutions Class 8
  • NCERT Solutions Class 9
  • NCERT Solutions Class 10
  • NCERT Solutions Class 11
  • NCERT Solutions Class 12

By referring to Extramarks NCERT Solutions Class 12 Business Studies Chapter 6, students can easily understand and learn the Staffing chapter with ease.


Key Features of NCERT Solutions Class 12 Business Studies Chapter 6

Students must study all the topics in the chapter in order to do well in the exam. Hence, NCERT Solutions Class 12 Business Studies Chapter 6 provides a detailed answer to all questions. Some of the major reasons why  you must choose Extramarks are:  :

  • Students can score well with the help of these detailed  NCERT Solutions Class 12 Business Studies Chapter 6 provided by Extramarks. 
  • Subject experts have prepared these notes keeping in mind the guidelines laid by CBSE.
  • All solutions are mentioned in a detailed and easy to understand manner.

Q.1  What is meant by staffing?

Ans. Staffing may be defined as the managerial function of hiring and developing the required personnel to fill in various positions in the organisation. Staffing injects into the organisation which is otherwise an empty shell of job positions.

Q.2 State the two important sources of recruitment.

Ans. The important sources of recruitment are:

  1. Internal sources: It is the process of recruiting employees from within enterprise. Generally based upon seniority of employees. Internal sources of recruitment enjoy economy of time, expenses and resources.
  2. External sources: It is the process of recruiting employees from outside the enterprise. Normally based upon the merit of employees. External sources are not as economical as internal sources.

Q.3 The workers of a factory are unable to work on new machines and always demand for help of supervisor. The Supervisor is overburdened with their frequent calls. Suggest the remedy. (Hint: training)

Ans. The workers of the organisation shall be given proper training. Training is the process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased. It improves their performance on the current job or prepares them for any intended job.

The benefits of training are:

i. Training is a systematic learning which reduces the wastage of time and efforts.

ii. It enhances employee productivity, both in quality and quantity.

iii. It aims at moulding the employees so that they can develop positive attitude for the organisation.

iv. It helps in obtaining effective response to fast changing environment.

v. Training increases employee morale and reduces absenteeism and employee turnover.

Q.4 The quality of production is not as per standards. On investigation it was observed that most of the workers were not fully aware of the proper operation of the machinery. What could be the way to improve the quality of production to meet the standards? (Training).

Ans. The way to improve is to impart Training to workers to make them learn use of machinery. The training method which will be suitable in this situation is Apprenticeship training. In apprenticeship training programme, a supervisor or a trainer guides the workers or learner regarding the skill of job. The trainer performs the job and the trainees observe him performing it.

The time period for apprenticeship programme varies between 1 to 2 years and the trainee is paid less than the skilled or qualified worker.

Q.5 The workers of a factory remain idle because of lack of knowledge of hi-tech machines. Frequent visit of engineer is made which causes high overhead charges. How can this problem be removed. (Vestibule training)

Ans. The problem mentioned in the above case study can be solved by providing vestibule training. Vestibule training is an off the job training method where employees are trained in an actual work environment in a class room where employees use the same materials and equipment. Employees learn their jobs on the equipment they would be using, but the training is conducted away from the actual work floor. Though expensive, vestibule training allows employees to get a full feel of doing their task without the real world pressures. Trainees are made to work on dummy equipments and after relevant expertise they are shifted to actual work.
This is usually done when the employees are required to handle expensive machinery and equipment.

Q.6 What is meant by recruitment? How is it different from selection?

Ans. Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. The purpose of recruitment is to stimulate and attract more and more job applicants for different positions in the organisation.

The differences between recruitment and selection are:

Basis Recruitment Selection
Meaning It is a process of searching suitable candidates to fill up vacant job position It is a process of screening and selecting the most eligible candidates and offering them jobs
Stage Recruitment proceeds the staffing function Selection starts where recruitment ends
Nature It is a positive process It is a negative process









Q.7 An organisation provides security services. It requires such candidates who are reliable and don’t leak out the secrets of their clients. What steps should be incorporated in selection process?

Ans. Selection is the process of choosing the most suitable candidate to fill the vacant job position. To solve this problem personality test should be performed. This test is conducted to find out the human behaviour of the candidate. This test relates to intelligence, aptitude, attitude and interest of the candidate.

Q.8 A company is manufacturing paper plates and bowls. It produces 1,00,000 plates and bowls each day. Due to local festival, it got an urgent order of extra 50,000 plates and bowls. Explain the method of recruitment that the company should adopt in the given circumstances to meet the order.

Ans. To complete the order on time the company needs to recruit more people immediately and the most suitable method in this case is ‘labour contractors’.

Labour contractors maintain close contact with the labour in villages and rural areas and whenever there is vacancy or requirement for labour in factory or in the construction site, they bring the labour from villages and supply to the organisations. They charge commission for the same. This method of recruitment is suitable for labourers and unskilled workers.

Q.9 Distinguish between training and development.


Basis Training Development
Meaning It is concerned with teaching technical skill only It is concerned in teaching technical, human and conceptual skill
Focus It focuses on present requirements of the organisation It focuses on future requirement of the organisation
Time It is a short term process It is a long term process











Q.10 Why are internal sources of recruitment considered to be more economical?

Ans. Internal source of recruitment is the process of recruiting employees from within enterprise. Two sources of such recruitment are transfers and promotion. Internal source is cheaper in terms of time and cost. It saves the cost of advertisement and training also.

Q.11 ‘No organisation can be successful unless it fills and keeps the various positions filled with the right kind of people for the right job.’ Elucidate

Ans. The ability of an organisation to achieve its goal depends upon the quality of its human resources.

Staffing function must be performed efficiently by all organisations. If right kind of people are not available, it will lead to wastage of materials, time, effort and energy, resulting in lower productivity and poor quality of products.

These enterprise will not be able to sell its products profitably.

It is, therefore, essential that right kind of people must be available in right number at the right time.

Q.12 ‘Human resource management includes many specialized activities and duties.’ Explain.

Ans. Human resource management includes specialised activities and duties like:

  • Recruitment i.e., search for qualified people: The primary function of the human resource manager is to find out the number of employees required by the organisation and make provision for their recruitment.
  • Human resource manager renders certain services which require special knowledge, for example, job evaluation, performance appraisal and negotiating with trade unions.
  • Developing compensation and incentive plans: Human resource manager conducts research from time to time with the aim of improving upon the policies concerning personnel.
  • Training and development of employees for efficient performance and carrier growth.
  • Maintaining labour relations and union management relations.
  • Handling grievance and complaints: It is the responsibility of the human resource manager to establish cordial relations between the employer and the employees.
  • Providing for social security and welfare of employees.

Q.13 Explain the procedure for selection of employees.

Ans. The steps that Abhinav needs to follow for Employees’ selection are:

i. Preliminary screening

ii. Selection Tests: The different types of selection tests that can be conducted by Pawan Ltd are:

  1. Intelligence test – This test is conducted to check the efficiency level of the employees in performing the job. This means assignment of the job related to vacant job position and testing the ability of the employees.
  2. Aptitude Test – This test is conducted to test the potential of learning new job of the candidate. This test helps to know the candidate will be performing in future.
  3. Personality Test – This test is conducted to find out the human behaviour of the candidate. This test relates to intelligence, aptitude, attitude and interest of the candidate.
  4. Trade Test – This test is conducted to check the basic knowledge and skill of the candidate related to vacant job position.

iii. Employment Interview

iv. Reference & Background checks

v. Selection decision

vi. Medical Examination

vii. Job Offer

viii. Contract of Employment

Q.14 What are the advantages of training to the individual and to the organisation?

Ans. Training is important for the organisation as well as for the employees too.

Importance of training for organisation is:

  1. Training is a systematic learning which reduces the wastage of time and efforts.
  2. It enhances employee productivity both in quality and quantity.
  3. It aims at moulding the employees so that they can develop positive attitude for the organisation.

Importance of training for the employee is:

  1. Improved skills and knowledge due to training lead to better career of the individual.
  2. Training makes employee more efficient in handling machines.
  3. It increases the satisfaction and morale of employees.

Q.15 Kaul Consultants have launched exclusively for senior management professionals. The portal lists out senior level jobs and ensures that the job is genuine through rigorous screening process.

a. State the source of recruitment highlighted in the case above.

b. State four benefits of the above identified source of recruitment.

Ans. a) External source of recruitment (Web Publishing). The consultants have launched a website and advertised for their posts.

b)The benefits of using external source of recruitment are as follows:

Qualified personnel: The management can attract qualified and trained people to apply for vacant jobs in the organisation.

Wider Choice: When vacancies are advised widely, a large number of applicants from outside the organisation apply. The management has a wider choice while selecting the people for employment.

Fresh Talent: External recruitment provide wider choice and brings new blood in the organisation.

Competitive Spirit: If a company hires external sources, the existing staff will have to compete with the outsiders. They will work harder to show better performance.

Q.16 A company, Xylo limited, is setting up a new plant in India for manufacturing auto components. India is a highly competitive and cost effective production base in this sector. Many reputed car manufacturers source their auto components from here. Xylo limited is planning to capture about 40% of the market share in India and also export to the tune of at least Rs.50 crores in about 2 years of its planned operations. To achieve these targets it requires a highly trained and motivated work force. You have been retained by the company to advise it in this matter. While giving answers keep in mind the sector the company is operating.


  1. Outline the process of staffing the company should follow.
  2. Which sources of recruitment the company should rely upon. Give reasons for your recommendation.
  3. Outline the process of selection the company should follow with reasons.

Ans. a. The steps company shall follow in the process of staffing are:

  1. Estimating manpower requirement
  2. Recruitment
  3. Selection
  4. Placement & orientation
  5. Training & development
  6. Compensation
  7. Promotion and career planning

b. Company should rely on external sources of recruitment. For the new plant, candidates from local area would be beneficial as they are familiar with working conditions, problems faced, etc. in the local region.

c. The process of selection the company should follow is

  1. Candidates shall be asked to appear for written and other tests.
  2. Tests shall measure skills and aptitude required for the job.
  3. Proficiency tests and personality tests also help in knowing the candidate.
  4. In the last, personal interview shall also be conducted before appointing the person.

Q.17 A major insurance company handled all recruiting, screening and training processes for data entry/customer service representatives. Their competitor was attracting most of the qualified, potential employees in their market. Recruiting was made even more difficult by the strong economy and the ‘jobseeker’s market.’ This resulted in the client having to choose from candidates who had the ‘soft’ skills needed for the job, but lacked the proper ‘hard’ skills and training.


  1. As an HR manager what problems do you see in the company?
  2. How do you think it can be resolved and what would be its impact on the company?

Ans. The problems here are:

  1. As competitor was attracting most of the qualified, potential employees in their market, there is shortage of qualified people.
  2. Candidates lack skills that is required for a good performance.
  1. To resolve this problem, training should be provided to employees. Also to attract skilled people, the recruitment can be outsourced.

Q.18 Ms. Jayshree recently completed her Post Graduate Diploma in Human Resource Management. A few months from now

a large steel manufacturing company appointed her as its human resource manager. As of now, the company employs 800 persons and has an expansion plan in hand which may require another 200 persons for various types of additional requirements. Ms. Jayshree has been given complete charge of the company’s Human Resource Department.


a. Point out, what functions is she supposed to perform?

b. What problems do you foresee in her job?

c. What steps is she going to take to perform her job efficiently?

d. How significant is her role in the organisation?

Ans. The main function Ms. Jayshree is supposed to perform is staffing. It is the managerial function of hiring and developing the required personnel to fill in various positions in the organization.

  1. The problem that she is likely to face is of appointing right people at the right time and at the right place. Selecting the required candidate that is suitable for the job is rigorous process. For this right source of recruitment is to be selected. Training is the part of staffing. So, arranging for the training is also expected to be done by Ms Jayshree.
  2. To perform her job efficiently, she should take following steps:
  1. Staffing plan should be developed to estimate the manpower requirements.
  2. Proper authority should be taken to appoint the required staff.
  3. Selection test and screening shall be designed for selecting the employees.
  4. For existing staff training sessions must be designed.
  1. Staffing has important role in an organisation. Managing the people element is pre requisite function of any organisation as it serves the basis of level of efficiency of an organisation. The success of any organisation depends on how effectively this function can be performed.
  2. Human resource department acts as link between workers and management. Handling grievances and complaints in an organisation is an essential part of the duty of human resource department. Staffing does not require a separate department. Staffing is the function performed by each manager. This also helps in utilisation of manpower

Please register to view this section