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Staffing – Class 12 Business Studies notes, important questions and MCQs

NCERT Class 12 Business Studies, chapter 6. Notes, key terms, important questions with answers and MCQs.

Chapter overview

Staffing is the function of filling and keeping filled the positions in the organisation structure. It involves estimating manpower needs, recruitment, selection, placement, orientation, training, development, performance appraisal, promotion and compensation. Staffing ensures the right people are in the right jobs and is a part of human resource management.

Staffing process

Estimating manpower requirements through workload and workforce analysis.
Recruitment (searching for and attracting candidates), selection (choosing the best), placement and orientation (introducing the new employee to the job and organisation).
Training and development, performance appraisal, promotion and career planning, and compensation (direct and indirect financial payments).

Recruitment and selection

Internal sources: transfers and promotions; they are cheaper and motivate employees but limit fresh talent.
External sources: direct recruitment, casual callers, advertisements, employment exchanges, placement agencies, campus recruitment, employee recommendations and web publishing.
Selection process: preliminary screening, selection tests (intelligence, aptitude, personality, trade and interest tests), employment interview, reference and background checks, selection decision, medical examination, job offer and contract of employment.

Training and development

Training increases specific job skills; development aims at the overall growth of an employee.
On-the-job methods: apprenticeship, coaching, internship and job rotation.
Off-the-job methods: classroom lectures, conferences, case studies, computer modelling, vestibule training (a replica of the work setting) and programmed instruction.

Key terms

Staffing: filling and keeping filled the positions in the organisation structure
Recruitment: the process of searching for prospective employees and encouraging them to apply
Selection: the process of choosing the most suitable candidates from among applicants
Orientation: introducing a new employee to the job and the organisation
Vestibule training: training given in a separate area that replicates the actual work setting

Important questions with answers

Distinguish between recruitment and selection.2 marks

Recruitment is the process of searching for prospective employees and stimulating them to apply, creating a pool of applicants; it is a positive process. Selection is the process of choosing the most suitable candidates from among the applicants through tests and interviews; it is a negative process because it rejects unsuitable candidates.

Distinguish between training and development.3 marks

Training is the process of increasing the knowledge and skills of employees for doing a particular job; it is job-oriented and short-term. Development is the process of overall growth of an employee, including personality and managerial abilities; it is career-oriented and long-term. Training is a part of development.

Explain the steps in the selection process.5 marks

Selection involves several steps. First, preliminary screening eliminates unqualified applicants on the basis of information in application forms and a short preliminary interview. Second, selection tests measure characteristics of candidates: intelligence tests measure mental ability, aptitude tests measure potential to learn skills, personality tests measure traits such as emotions and maturity, trade tests measure existing skills, and interest tests identify patterns of interest. Third, the employment interview is an in-depth conversation to evaluate the applicant's suitability. Fourth, reference and background checks verify the information given by the candidate through previous employers and referees. Fifth, the selection decision is taken from among those who pass the tests, interviews and checks, usually with the involvement of the concerned manager. Sixth, a medical examination ensures the candidate is physically fit for the job. Seventh, a job offer is made through a letter of appointment stating the date of joining. Finally, a contract of employment is signed, stating terms such as job title, duties, pay, working hours and conditions of termination.

Quick revision

Process: estimate, recruit, select, place, train, appraise, promote, compensate.
Internal vs external sources of recruitment.
Selection steps: screening → tests → interview → checks → decision → medical → offer → contract.
On-the-job vs off-the-job training.

Exam tips

Remember: recruitment is positive (attracting applicants); selection is negative (rejecting unsuitable ones).
Learn the eight steps of the selection process in order.

Practice MCQs

Filling the positions in an organisation is called
1. planning
2. staffing
3. directing
4. controlling
Show answer
Answer: (b) staffing. It deals with people.
Searching for candidates and encouraging them to apply is
1. recruitment
2. selection
3. training
4. placement
Show answer
Answer: (a) recruitment. It creates a pool of applicants.
Transfers and promotions are
1. external sources
2. selection tests
3. internal sources
4. training methods
Show answer
Answer: (c) internal sources. They fill jobs from within.
Recruitment is called a positive process while selection is called
1. a neutral process
2. a planning process
3. a training process
4. a negative process
Show answer
Answer: (d) a negative process. Selection rejects unsuitable candidates.
Training given in a separate area with equipment like the real workplace is
1. apprenticeship
2. vestibule training
3. coaching
4. internship
Show answer
Answer: (b) vestibule training. It avoids disrupting actual work.
A test measuring a person's potential to learn new skills is a/an
1. aptitude test
2. intelligence test
3. interest test
4. trade test
Show answer
Answer: (a) aptitude test. It indicates capacity to develop.
Which source of recruitment helps get fresh talent but is costly
1. external sources
2. transfers
3. promotions
4. internal sources
Show answer
Answer: (a) external sources. Candidates come from outside.
The final step in the selection process is
1. preliminary screening
2. interview
3. contract of employment
4. medical examination
Show answer
Answer: (c) contract of employment. It records terms of employment.

All chapters of Class 12 Business Studies

Written by Kundali IQ from standard, well-established facts to help with revision. This is not an official NCERT publication; always read your textbook too.