Here you will find NCERT Solution Questions for Class 12 Business Studies with Answers PDF Free Download based on the important concepts and topics given in the textbook as per CBSE new exam pattern. This may assist you to understand and check your knowledge about the chapters. These Solution Questions Answers are selected supported by the newest exam pattern as announced by CBSE.
Short Answer Type
Q1. Briefly enumerate the important sources of recruitment.
Answer:There are two important sources of recruitment:
(i) Internal source:
(a) Transfer – It involves shifting of an employee from one job to another, one department to another from one shift to another, without a substantive change in the responsibilities and status of the employee.
(b) Promotions – Promotions is the part of the internal source of recruitment where companies filling higher job by promoting employees from lower job.
(ii) External source: It refer to the source of recruitment where companies filling the vacant sit from outside sources so, it is a very long and costly process. External source provides wide choice and brings new blood in the organisation which may sometimes useful and sometimes not. There are various types of sources used for external sources of recruitment:
(a) Direct Recruitment
(b) Causal callers
(c) Advertisement
(d) Employement Exchange
(e) Placement Agencies
(f) Campus recuitment
(g) Recommendation of Employees
(h) Labour Contractor
(i) Web Publishing
(j) Advertising on Television
Q2. What is meant by recruitment? How is it different from selection?
Answer: Recruitment refers to the process of finding possible candidates for a job. It can be defined as the process of motivating and encouraging people to come and apply for a job in an organisation. Selection is the process of identifying and choosing the best person out of a number of prospective candidates for a job.
If recruitment is positive, selection is negative. Recruitment helps in creating a pool of prospective workforce whereas selection helps in finding the best out of them.
Q3.Define Training. How is it different from education?
Answer: Training is any process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased. It is a process of learning new skills and application of knowledge. In other word education is the process of increasing the knowledge and understanding of employees. It is the understanding and interpretation of knowledge.
| Basis | Training | Education |
| Purpose | Improves current job performance. | Interpretation of knowledge and understanding. |
| Scope | Narrow (improve skills to do a particular job) | Wider |
| Imparted by | Companies, firms | School, colleges |
Q4. Distinguish between training and development.
Answer:
| Training | Development |
| It is a process of increasing knowledge and skills. | It is a process of learning and growth. |
| It is to enable the employee to do the job better. | It is to enable the overall growth of the employee. |
| It is a job oriented process. | It is career oriented process. |
| Training is narrow in scope and focuses on how one can become more efficient in the intended job. | Development is wider in scope and focuses on the overall personality development of the employee. Training is a part of development. |
Q5. Why are internal sources of recruitment considered to be more economical?
Answer:Filling of jobs internally is cheaper as compared to getting candidates from external sources because only transfer or promotion has to be done. It does not involve the long process of staffing or selection. It increases the cost in the form of more time, money and efforts in recruiting, so internal sources of recruitment considered to be more economical.
Q6. What is the importance of staffing function in today’s environment?
Answer: Human resources are the foundation of any business because right people can help your business to the top and the wrong people can break whole business. So, the staffing function of management fills the requirement and finds the right people for the right job.
Proper staffing ensures the following benefits to the organisation:
• Helps in discovering and obtaining competent personnel for various jobs.
• Makes for higher performance, by putting right person on the right job.
• Ensures the continuous survival and growth of the enterprise through the succession planning for managers.
• Helps to ensure optimum utilisation of the human resources.
• Improves job satisfaction and morale of employees through objectives assessment and fair reward for their contribution.
Long Answer Type Questions
Q1. Define the staffing process and the various steps involved in it.
Answer:: Staffing process of the management is concerned with acquiring, developing, employing, remunerating and retaining people or we can say it is the timely fulfilment of the manpower requirements with in an organisation.
The following steps are involved in staffing process
(i) Estimating the Manpower Requirements The first step in the staffing process is determining the present manpower inventory and assessing the present and future manpower requirements of the organisation keeping in mind the production schedule, demand etc.
(ii) Recruitment Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. For this various sources can be used like transfer, promotion, advertising, job consultants etc.
(iii) Selection Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment. It involves a host of tests and interviews.
(iv) Placement and Orientation Orientation is introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation. He is taken around the work place and given the charge of the job for which he has been selected. Placement refers to the employee occupying the position or post for which the person has been selected.
(v) Training and Development All organisations have either in-house training centres or have forged alliances with training and educational institutes to ensure continued learning of their subordinates. By offering the opportunities for career advancement to their members, organisations are not only able to attract but also retain its talented staff.
(vi) Performance Appraisal After the employees have undergone a period of training and they have been on the job for some time, there is a need to evaluate their performance. The employee is expected to know what the standards are and the superior is to provide the employee feedback on his/her performance. The performance appraisal process, therefore, will include defining the job, appraising performance and providing feedback.
(vii) Promotion and Career Planning It is very important for all organisations to address career related issues and promotional avenues for their employees. They must provide opportunities to everyone to show their potential and in return promotions can be provided.
(viii) Compensation All organisations need to establish wage and salary plans for their employees. There are various ways to prepare different pay plans depending on the worth of the job. Compensation therefore, refers to all forms of pay or rewards going to employees.
Q2. Explain the procedure for selection of employees.
Answer:: The important steps in the process of selection are as follows
(i) Preliminary Screening It helps the manager eliminate unqualified or unfit job seekers based on the information supplied in the application forms.
(ii) Selection Tests An employment test is a mechanism that attempts to measure certain characteristics of individuals. These range from aptitudes, such as manual dexterity, to intelligence to personality.
(iii) Employment Interview Interview is a formal, in depth conversation conducted to evaluate the applicant’s suitability for the job.
(iv) Reference and Background Checks Many employers request names, addresses and telephone numbers of references for the purpose of verifying information and gaining additional on an applicant.
(v) Selection Decision The final decision has to be made among the candidates who pass the tests, interviews and reference checks.
(vi) Medical Examination Before the candidate is given a job offer he/she is required to go through a medical test.
(vii) Job Offer Job offer is made through a letter of appointment/confirm his acceptance. Such a letter generally contains a date by which the appointee must report on duty.
(viii) Contract of Employment After the job offer has been made and candidate accepts the offer, certain documents need to be executed by the employer and the candidate. There is also a need for preparing a contract of employment. It includes job title, duties, responsibilities, date when continuous employment starts etc.
Q3. What are the advantages of training to the individual and to the organisation?
Answer:: Training helps both the organisation and the individual.
Benefits to the Organisation
(i) Training is a systematic learning which reduces the wastage of efforts and money.
(ii) Enhances employee productivity.
(iii) Training helps a manager to handle an emergency situation.
(iv) Training motivates workers and thus reduces absenteeism.
(v) Helps in adjusting to the changing environment (technological).
Benefits to the Employee
(i) Better career opportunities due to improved skills and knowledge.
(ii) Earnings can be increased due to improved performance.
(iii)Trained workers can handle machines more efficiently.
(iv) Employees always remain motivated and satisfied.
Q4. The staffing function is performed by every manager and not necessarily by a separate department. Explain.
Answer:: Staffing is a function which all managers need to perform. It is the responsibility of all managers to directly deal with and select people to work for the organisation. When the manager performs the staffing function his role is slightly limited. In small organisations, managers may perform all duties related to employees salaries, welfare and working conditions but as organisation grow and number of persons employed increases, a separate department called the human resource department is formed which has specialists in managing people.
Case study
Q1. A company X 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. X limited is planning to capture about 40% of the market share in India and also export to the tune of at least $ 5 million in about 2 years of its planned operations. 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 answer keep in mind the sector, the company is operating.
Answer: The prime concern of the company is to hire the manpower who are highly trained and motivated. In order to achieve the targets, the company should follow the staffing process in this manner
| Estimating Manpower recruitment |
| Recruitment |
| Selection |
| Placement and orientation |
| Training and development |
Because of rapid advancement of technology, increasing size of organisation and complicated behaviour of human beings, the ability of an organisation to achieve its goal depends upon the quality of its human resources.
Q2. Which sources of recruitment the company should rely upon? Give reasons for your recommendation.
Answer:The company is establishing a new unit in India. Thus, they should rely on external sources of recruitment. They should adopt this source and through employment exchange, placement agencies, labour contractors they will able to get the good staff in company.
This recommendation is fruitful because through these sources the company is having a wide choice of candidates, they can get the qualified personnel and brings new blood in the organisation who are highly competitive, will work harder to show better performance.
Q3. Outline the process of selection the company should follow with reasons.
Answer: The process of selection is:
| Estimating Manpower recruitment |
| Recruitment |
| Selection |
| Placement and orientation |
| Training and development |
Company should follow these steps in series as the first step preliminary screening helps the manager to select among those candidates whose applications are selected.
Second step is selection test it is to be conducted to check the practical knowledge of the candidate.
Third step interview is to be taken of those candidates who qualify the test. A panel of experts is called which are identifying the best among hundreds.
Fourth step is selection decision. The candidates who pass the test, interview included in selection list and critically examined that they are best or not.
Fifth step is examining their medical fitness they are efficient or not.
Sixth step is to offer the job, providing them a letter of appointment in which terms and conditions are mentioned.
The final step is contract of employment when candidate accepts the job offer they signed the contract of employment, the employer and candidate exchange certain documents.
Q4. Which methods of training and development should be company initiate? Explain giving reasons.
Answer:The company can use ‘On the job’ training methods or ‘off the training’ method
The merits or benefits of ‘On the job’ are:
Apprenticeship programmes: These are designed to acquire a higher level of skill under the guidance of master worker.
Coaching: Through this method trainee works directly with a senior manager and the manager takes a full responsibility for the trainee coaching.
Internship training: It is a joint programme of training in which educational institutions and business firms cooperate.
If the ‘Off the job’ methods are used then the benefits derived are
(i) Vestibule training helps in avoiding modern and expensive equipments from being damaged.
(ii) Conference helps in to develop conceptual knowledge reduce, resistance to change etc.
Because it is more economical as compared to off the job training method, so company need to follow ‘off the job training’ method.
Q2. 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 ‘job seeker’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.
Q1. As an HR manager what problems do you see in the company?
Answer:The human resource manager may face the following problems:-
(i) Lack of trained workforce.
(ii) Lack of sufficient personnel to provide customer services.
(iii) Inefficient maintenance of data.
Q2. How do you think it can be resolved?
Answer: Following steps can be taken to resolve these problems
(i) Proper training of the personnel.
(ii) Provision of incentive based schemes.
(iii) Proper data base should be maintained by the company in order to provide efficient services.
Q3. A public transport corporation has hired 1,000 buses for the different routes for the passengers of metropolitan city. Most of the 3,000 crewmen (drivers, conduct, helpers etc) of these buses have been found to be wanting in satisfactorily dealing with public and daily commuter. They seem to be little interested in the job and the job seem to have lost all meaning to them.
Q1. As manager of the public transport company what measures do you suggest to improve the working of crewman in question?
Answer:The following measures can be taken to improve the working of crewmen.
(i) Along with wages/salary various other facilities should be provided to them like education for their children, insurance etc.
(ii) Working hours should be between 7 to 8 per day.
(iii) Intervals should be provided.
Q2. Is it possible to modify their behaviour by planning a suitable type of training? Suggest one.
Answer: Yes, it is possible to modify their behaviour by planning ‘coaching’ training programme as in this programmes superior guides and instruct the trainee as a coach. He suggests the changes required in behaviour and performance of the employee. Coach gives due importance to the objective of individual and objectives of organisation.
Q4. 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 new, the company employs 800 persons and has an expansion plan in hand which may required another 200 persons for various types of additional requirements. Ms Jayshree has been given complete charge of the company’s human resource department.
Q1. Point out what functions is she supposed to perform?
Answer:Ms Jayshree as HR manager is required to perform the following functions
(i) Recruitment
(ii) Prepare job description
(iii) Preparing compensation and incentive plans
(iv) Arranging training programmes
(v) Making welfare schemes for employees
(vi) Handling grievances of employees
(vii) Handling labour dispute
Q2. What problems do you foresee in her job?
Answer:She may face the following problems:
(i) Properly qualified candidates may not be available.
(ii) Demand for wages may go higher.
(iii) After providing training the workers may leave the organisation.
(iv) Trade unions may bring unreasonable demands.
Q3. What steps is she going to take to perform her job efficiently?
Answer:Following steps can be taken by her to perform her job efficiently:
(i) She should make use of all the possible sources of recruitment.
(ii) She should frequently consult the experts and also observe the policies followed by competitors to recruit and retain the workforce.
(iii) Maintaining cordial relationship with trade unions and encouraging them to act as one big family.
Q4. How significant is her role in the organisation?
Answer: Her role is significant in the organisation. She is a human resources manager and concerned with timely procurement of competent manpower and ensuring its effective and efficient utilisation of manpower.
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