ORGANISING

Organising: Definition
Organising is the process of defining and grouping the activities of the
enterprise and establishing authority relationships among them for the
realisation of the desired goals.

Hierarchy: Definition
Hierarchy is the ranking of job positions on the basis of relative roles and
responsibilities.

Types of Organisation

1. Formal organisation refers to the organisation structure which is

designed by the management to accomplish a particular task.
2. Informal organisation emerges from within the formal organisation
when people interact beyond their officially defined roles.

Steps Involved in the Process of Organizing

 Identification and division of work is done in accordance with

predetermined plans to avoid duplication of activities and ensure
that the burden of work is being shared among the employees.
 Departmentalisation involves grouping of similar activities into
departments, units, sections etc. using several criteria as a basis to
facilitate specialization.
 Assignment of duties is done to the members as per their job
positions. Once departments have been created, each of them is
placed under the charge of an individual.
 Establishing reporting relationships While assigning jobs, each
member is told that from whom he/she has to take orders and to
whom he/she will be accountable. The establishment of such clear
reporting relationships help to create a well defined hierarchial
structure.

Importance of Organising

 Organising offers benefits of specialisation as it leads to a systematic

allocation of jobs amongst the workforce as the specific employees
are assigned specific job on a regular basis.
 It brings clarity in working relationships by establishing a hierarchical
order thereby enabling the fixation of responsibility and
 specification of the extent of authority to be exercised by an
individual.
 It leads to optimum utilisation of resources through proper
allocation of jobs, and minimising the wastage of resources and
efforts.
 It facilitates adaptation to change and helps to create a stable
organisation by incorporating changes in the organisation structure
as per the needs of the changing environment.
 It leads to effective administration by providing a clear description of
jobs and related duties which helps to avoid confusion and
duplication.
 It fosters development of personnel as delegation helps to build the
ability of the subordinate to deal effectively with challenges and
helps them to realise their full potential.
 It leads to expansion and growth of an enterprise by enabling it to
deviate from existing norms and taking up new challenges.

ORGANISATIONAL STRUCTURE
Organisational Structure: Definition
The organisational structure can be defined as the framework within which
managerial and operating tasks are performed.

Types of Organisational Structures

1. Functional Structure
2. Divisional Structure

Features of Functional Structure

 A functional structure is an organisational design that groups similar

or related jobs together on the basis of functions like production,
finance etc.
 Each department hasa functional manager responsible for
performance and who has authority over the department.
 All departments are under the charge of a coordinating head.
 These departments may be further divided into sections.

Features of Divisional Structure

 A divisional structure is an organisational design that groups similar

or related jobs together on the basis of functions. Different products
manufactured in the organisation. Structure comprise of separate
business units or divisions.
  Each department hasa divisional manager responsible for the profit
or loss of his division.
 Each division is multi-functional because within each division
functions like production, marketing, finance, purchase etc., are
performed together to achieve a common goal.

Advantages of Functional Structure

 A functional structure emphasises on specific functions and ensures

that different functions get due attention.
 Due to the similarity in the tasks being performed, it promotes
control and coordination within a department.
 It results in increased profit with the improvement in managerial and
operational efficiency.
 By focusing only on a limited range of skills, it facilitates the training
of employees.
 It leads to minimal duplication of effort and leads to economies of
scale thereby reducing cost.

Advantages of Divisional Structure

 Product specialisation helps a divisional manager to gain experience

in all functions related to a particular product and this prepares him
for higher positions.
 It providesa proper basis for performance measurement and also
helps in fixation of responsibility in cases of poor performance of the
division as revenues and costs related to different departments can
be easily identified.
 It leads to faster decision making, promotes flexibility and initiative
because each division functions as an autonomous unit.
 It facilitates expansion and growth as new divisions can be added
just by adding another divisional head and staff for the new product
line without interrupting the existing operations

Disadvantages of Functional Structure

 It gives less emphasis to overall enterprise objectives than the

objectives pursued by a functional head.
 It may lead to problems in coordination.
 It may lead to conflict of interests if two or more departments are
not compatible.
  It may lead to inflexibility as the functional heads do not get training
and experience in diverse areas.

Disadvantages of Divisional Structure

 There may be conflicts among the different division heads, as in

pursuit of higher profits, each of them may seek maximum allocation
of resources at the cost of other divisions.
 The cost is high as each division is provided with separate set of
similar functions.
 It provides the managers with the authority to supervise all activities
related to a particular division. In course of time, such a manager
may gain power and in a bid to assert his independence may ignore
organisational interests.

S.No. Basis Functional Structure Divisional Structure

It is based on product lines
It is based on
1. Formation and is supported by
functions.
functions.
It is difficult to fix on a It is easy to fix responsibility
2. Responsibility
department. for performance.
Functional
3. Specialisation Product specialisation.
specialisation
It is difficult, as each It is easier, autonomy as well
Managerial functional manager as the chance to perform
4.
Development has to report to the multiple functions helps in
top management. managerial development.
It is economical as the It is costly as there is
5. Cost functions are not duplication of resources in
duplicated. various departments.
It is easy, because all
It is difficult for a
functions related to a
6. Coordination multiproduct
particular product are
company.
integrated in one.
7. Suitability It is most suitable It is suitable for those
when the size of the business enterprises where a
organisation is large, large variety of products are
has diversified manufactured using different
activities and productive resources.
operations require a
high degree of
 specialisation.

FORMAL ORGANISATION
Features of Formal Organisation

 It specifies the reporting relationships among various job positions.

 It is a means to achieve the organisational objectives.
 It seeks to coordinate the efforts of various departments.
 It is deliberately created by the top management to facilitate smooth
functioning of the organisation.
 It places more emphasis on work to be performed rather than
interpersonal relationships
among the employees.

Advantages of Formal Organisation

 It is easier to fix responsibility since reporting relationships are

clearly specified.
 The role and duties of each employee are clearly defined.
 Unity of command is maintained through an ^ established chain of
command.
 It leads to effective accomplishment of goals by providinga
framework for the efficient operations.
 It provides stability to the organisation as the behaviour of the
employees is guided by rules and regulations of the organisation.

Limitations of Formal Organisation

 It may lead to procedural delays as all communication has to take

place through scalar chain only.
 It restricts the creativity and ^ recognisation of employees as it does
not allow any deviations from rigidly laid down polices.
 It does not provide a complete picture of how an organisation works
as it is difficult to understand all human relationships in a formal
structure.

INFORMAL ORGANISATION
Features of Informal Organisation

 It originates from within the formal organisation as a result of

personal interaction among employees.
 Instead of the official rules and regulations, the standards of
behaviour evolve from group norms.
  The group members create independent channels of communication
without specified direction of flow of information.
 It emerges spontaneously and is not deliberately created by the
management.
 It isa complex network of social relationships among members and
has no definite structure.

Advantages of Informal Organisation

 It leads to faster spread of information as well as facilitates quick

feedback.
 It helps to fulfill the social needs of the members by giving them a
sense of belongingness in the organisation and enhances their job
satisfaction.
 It contributes towards the fulfillment of organisational objectives by
compensating for inadequacies in the formal organisation

Disadvantages of Informal Organisation

 It may work against the interest of the formal organisations it leads

to spreading of rumours.
 Sometimes it may restrict growth of the organisation by strongly
opposing to the proposed change.
 As it create a peer pressure among the members to conform to
group expectations, it can be harmful to the organisation.

S.No Basis Formal Organisation Informal Organisation

The structure of It is a network of social
authority relationships relationships arising out
1 Meaning created deliberated by of the interaction among
the management to employees within an
achieve its objectives. organisation.
It arises as a result of
It arises as a result of
2 Origin company rules and
social interaction.
policies.
It arises by the virtue of
It arises out of personal
3 Authority position in the
qualities of the members.
organisation.
It is directed by rules of There is no set behaviour
4 Behaviour
the organisation. pattern for the members.

5 Flow of The communication The communication can

 take place in any
takes place through the
Communication direction as its flow does
scalar chain.
not follow a set pattern.
6 Nature It is rigid. It is flexible.
Leaders are chosen by the
7 Leadership Managers are leaders. group so they may or not
be the managers.

DELEGATION OF AUTHORITY
Delegation of Authority: Definition
Delegation of authority merely means the granting of authority to
subordinates to

Elements Of Delegation

1. Authority
2. Responsibility
3. Accountability.

Importance of Delegation

 It leads to effective management as by relieving the employees from

doing routine work, it provides them with time to excel in new areas.
 It promotes employee development as they are entrusted with more
opportunities to utilise their talent, perform complex tasks and
assume those responsibilities which are likely to improve their career
prospects.
 It helps to motivate employees as when a subordinate is entrusted
with a task, it is not merely the sharing of work but involves trust on
the superior’s part and commitment on the part of the subordinate.
 It facilitates the growth of an organisation as it seeks to enrich the
quality of manpower and widens the scope of using internal
recruitment by providing them with training and experience through
exposure to varied jobs.
 It provides the basis of management hierarchy as it establishes
superior-subordinate relationships, which are the basis of hierarchy
of management
 It facilitates better coordination amongst the departments, levels
and functions of management by providing clarity in reporting
relationships.

S.No. Basis Authority Responsibility Accountability

 Authority refers to Accountability implies
the right of an Responsibility is being answerable for
individual to the obligation of the final outcome,
command his a subordinate to onee authority has
1 Meaning
subordinates and properly perform been delegated and
to take action the assigned responsibility
within the scope of duty. accepted, one cannot
his position. deny accountability.
Cannot be
Cannot be delegated
2 Delegation Can be delegated. entirely
at all.
delegated.
Arises from formal Arises from
Arises from
3 Origin position in the delegated
responsibility.
organisation. authority.
Flows downward Flows upward Flows upward from
4 Flow from superior to from subordinate subordinate to
subordinate. to superior. superior.

DECENTRALISATON
Decentralisation: Definition
Decentralisation refers to systematic dispersal of authority to the lowest
level, except that which can be exercised at central points.

Caution in Implementing a Decentralisation Policy

 Decentralisation must always be balanced with centralisation in

areas of major policy decisions.
 Complete centralisation would imply concentration of all decision
making functions at the apex of the management hierarchy find
would eliminate the need fora management hierarchy.
 Complete decentralisation can lead to organisational disintegration
as the departments may start operating on their own guidelines
which may be contrary to the interest of the organisation.

Need for Decentralisation

As an organisation grows in size and complexity, the departmental or
branch heads are directly and closely involved with certain operations and
are likely to have more knowledge about them as compared to the top
management which may be associated with individual operations only
indirectly.

Importance of Decentralisation
  It seeks to develop initiative in the subordinates by promoting self-
reliance and confidence amongst them and also helps to identify
those executives who have the necessary potential to become
dynamic leaders.
 It provides relief to top management as
the subordinates are allowed to operate independently within their
area of jurisdiction. Consequently, the need for direct supervision is
reduced.
 It facilitates quick decision making as the employees are allowed to
act independently within their are a of jurisdiction without
consulting others.
 It develops managerial talent for the
future by providing the employees with the necessary training and
experience through exposure to varied challenging jobs and also
facilitates identification of those employees who may and those who
may not be successful in assuming greater responsibility.
 It facilitates growth of the organisation by
increasing its productivity and profitability through assigning greater
autonomy to the lower levels of management as well as divisional or
departmental heads.
 It facilitates better control by ensuring continuous evaluation of
performance at each level and the contribution of each department
so that they can be individually held accountable for their results.

Delegation of
S.No. Basis Decentralisation
authority
It is an optional policy
It is a compulsory act
decision and is only
because no individual
1. Nature implemented at the
can perform all tasks
discretion of the top
on his own.
management.
The subordinates have
less freedom to take
The control over executives
Freedom of own decisions as there
2. is less hence they have a
action is more control is
greater freedom of action.
exercised by the
superiors.
It is the result of the policy
It is a process followed
3. Status decision of the top
to share tasks.
management.
4. Scope It has narrow scope as It has wide scope as it
 it is limited to superior implies extension of
and his immediate delegation to the lowest
subordinate. level of management.
To increase the role of the
To lessen the burden subordinates in the
5. Purpose
of the manager. organisation by giving
them more autonomy.
Difficult, as it involves the
Withdrawal Easy, as only two
extension of delegation to
6. of persons are involved in
the lowest level of
authority the process.
management.

MIND MAP

LATEST CBSE QUESTIONS

Question 1.
Differentiate between ‘formal’ and ‘informal’ organisation on the basis of
‘origin’. (CBSE, Delhi 2017)
Answer:
Formal organisation arises as a result of companies rules and policies
whereas informal organisation emerges spontaneously from within the
formal organisation as a result of social interactions, amongst the
employees.

Question 2.
Aman Chadha started ‘Bulls Eye’ a company for providing cyber security
solutions to businesses. Its objective is to prevent, detect and respond to
cyber attacks and protect critical data. He was a hardworking software
engineer and an expert in cyber security. His reputation grew by leaps and
bounds as he was not only a person of integrity but also did his work with
utmost honesty and sincerity. The business started growing day by day.
He was delighted when he was offered a big project by the Ministry of
Defence. While working on the project, he found that the volume of work
made it impractical for him to handle all the work by himself. He decided
to expand the team. The company maintained a close liaison with a local
engineering college. During a campus placement, Ishan and Vrinda were
appointed to work for the new project.
He found the new employees capable, enthusiastic and trustworthy. Aman
Chadha was thus, able to focus on objectives and with the help of Ishan
and Vrinda, the project was completed on time. Not only this Aman
Chadha was also able to extend his area of operations. On the other hand
Ishan and Vrinda also got opportunities to develop and exercise initiative.

1. Identify and briefly explain the concept used by Aman Chadha in the
above case which helped him in focusing on objectives.
2. Also, state any four points of importance of the concept identified in
(i) above. (CBSE, Delhi 2017)

Answer:

1. Delegation of authority is the concept used by Aman Chadha in the

above case which helped him in focusing on objectives.
Delegation of authority is the process of granting of authority to the
subordinates to operate within prescribed limits.
2. The four points of importance of delegation of authority are
described below:
 o Effective management: It helps the managers to function more
efficiently as they get more time to concentrate on important
matters. Freedom from doing routine work provides them with
opportunities to excel in new areas.
o Employee development: By empowering the employees, they are
given more opportunities to utilise their talent and this may help
them to become better leaders and decision makers in future.
o Motivation of employees: Delegation also has psychological
benefits as helps in building the self-esteem of an employee and
improves his confidence and work performance. When a superior
entrusts a subordinate with a task, it is not merely
the sharing of work but involves trust on the superior’s part and
commitment on the part of the subordinate. Thus, delegation may
give rise to latent abilities in the subordinates.
o Facilitation of growth: With the increase in the competence of the
employees, an organisation tends to gain in many ways. The growth
and expansion of the firm becomes easy as the capable workforce is
ready to take greater responsibilities.

Question 3.
Give the meaning of ‘supervision’ as an element of directing. (CBSE, OD
2017)
Answer:
Supervision is the process of overseeing the work of a subordinate by his
superior.

Question 4.
Differentiate between ‘formal’ and ‘informal’ organisation on the basis of
‘flow of communication’. (CBSE, OD 2017)
Answer:
In a formal organization the communication takes place through the scalar
chain whereas in an informal organization communication can take place in
any direction there is no planned route.

Question 5.
What is meant by span of management? (CBSE, Sample Paper, 2017)
Answer:
Span of management refers to the number of subordinates that can be
effectively managed by a superior. A narrow span of control would
necessitate more number of levels in the organisation or vice versa.

Question 6.
Ramdas, aged 49 is working in an aviation company. He is the senior most
employee in his division. He is even senior to the division manager,
Kanaputti. Ramdas is considered one of the most committed, capable and
hard-working employees. As a result of his abilities and seniority, he
generally received the work assignments of his choice. Although there was
no formal designation of various „special’ projects assigned to Ramdas, he
handled them as a matter of routine. A problem developed when an able
and intelligent person Nagarjuna, aged 33, was appointed by Kanaputti.
Nagarjun’s previous three years’ experience in the closely related work,
made it possible for him to catch on to the routine work of his new job
more rapidly than was customary for a new employee. On several
occasions, Kanaputti noticed the tension developing between the two
employees. However, he didn’t want to get involved in their personal issues
as long as the work was completed effectively and efficiently by them. One
day, the tension between them reached the boiling point and Ramdas
complained to
Kanaputti stating that his duties were being largely taken over by Nagarjun.
Kanaputti issued the order stating the clear allocation of the jobs and
related duties between the two. He further clarified the working
relationship between them by specifying who was to report to whom. This
helped in reducing the workload, enhancing productivity and removing
ambiguity. (CBSE, Sample Paper, 2017)

1. Identify and state the step of organizing process which has not been
carried out properly and contributed to this problem.
2. State the two steps of the organizing process which have been taken
by Kanaputti to respond to the complaint of Ramdas.
3. Also state two points of importance of organizing as reflected in the
above case.

Answer:

1. The step of organizing process which has not been carried out
properly and contributed to this problem is Assignment of duties.
 Assignment of Duties: Once departments have been created each
of them is placed under the charge of an individual and then jobs
are allocated to the members as per their job positions.
2. The two steps of the organizing process which have been taken by
Kanaputti to respond to the complaint of Ramdas are listed below:

o Assigning the duties

o Establishing reporting relationship.

3. The two points of importance of organizing as reflected in the above

case are described below:

o Optimum utilization of resources: Organising ensures best

possible use of all forms of resources i.e. physical, financial and
human resource. It ensures systematic assignment of jobs thereby
curbing overlapping of work and avoiding possibilities of duplication
of work. This helps in preventing confusion and minimising the
wastage of resources and efforts.
o Adaptation to change: The process of organising provides stability
to the enterprise as it can then continue to survive and grow inspite
of changes in the business environment. It enables the organisation
structure to be suitably modified and the revision of inter-
relationships amongst managerial levels to pave the way for a
smooth transition.

Question 7.
“Shan Spices Ltd.” are the manufacturer of different food specific spices like
Rajmaa Masala, Cholley Masala, Aaloo Parantha Masala etc. Mr. Raghav,
the owner of the company has created different departments for purchase,
production, marketing, finance and human resource. There are thirty
employees working in the organisation. Planning is of paramount
importance to the company as Mr. Raghav believes that effective planning
leads to achievement of organisational objectives. So in order to make
employees focus on objectives, he issued instructions that during working
hours only official matters will be discussed. He made certain rules and
code of conduct for the employees to follow, according to which
employees are not allowed to visit and talk to the employees of other
departments except for official work. He emphasised on work performance
which resulted in smooth functioning of the organisation.

1. Identify and state the type of organisation mentioned in the above

para.
 2. State one feature of the concept identified in part (a) as mentioned
in the above para.
3. What was the purpose behind the formulation of rules for the
employees that restricted their personal communication with the
employees of other departments?
4. State two values violated by Mr. Raghav. (CBSE, Sample Paper,
2017)

Answer:

1. Formal organisation is the type of organisation mentioned in the

above paragraph. Formal organisation refers to the organisation
structure which is deliberately created by the management to
accomplish a particular task. It clearly defines the boundaries of
authority and responsibility and facilitates systematic coordination
among the various activities to achieve organisational goals.
2. One feature of formal organisation is that it clarifies who has to
report to whom by specifying the relationships among various job
positions and the nature of their interrelationship.
3. The purpose behind the formulation of rules for the employees that
restricted their personal communication with the employees of other
departments is to ensure discipline at workplace and avoid wastage
of time. This is help to curb the emergence of informal organisation
to a certain extend and increase work efficiency.
4. The two values violated by Mr. Raghav are :

o Liberty to employees
o Fulfilment of emotional needs

Question 8.
Steelo Ltd. decided to set-up its steel manufacturing factory in the
backward area of Orissa where very less job opportunities were available.
People of that area welcomed this effort of Steelo Ltd. To attract people to
work in its factory, it also decided to provide many other facilities like a
school, hospital, market, etc. in the factory premises.
Steelo Ltd. started earning huge profits. Another competing company
asked its production manager Aslam to investigate the reasons of earning
huge profits by Steelo Ltd.
Aslam found that in both the companies, there was systematic
coordination among the various activities to achieve the organisational
goals. Every employee knew who was responsible and accountable to
whom. The only difference was that in his organisation, communication
took place only through the scalar chain whereas Steelo Ltd. was allowing
the flow of communication in all the directions as per the requirement
which led to faster spread of information as well as quick feedback.

1. Identify the type of organisation which permits Steelo Ltd. the flow
of communication in all the directions.
2. State another advantage of the type of organisation identified in
part (1) above.
3. State any two values which Steelo Ltd. wanted to communicate to
society.

OR
Mr Car Ltd. decided to set-up its new car manufacturing factory in the
backward area of West Bengal where very less job opportunities were
available. People of that area welcomed this effort of Mr Car Ltd. The
company also decided to provide facilities like a school, hospital, market,
etc. in the factory premises so that the people are attracted to join the
factory as workers.
Mr Car Ltd. started earning huge profits. Another competing company
asked its production manager Arvind to investigate the reasons of earning
huge profits by My Car Ltd.
Arvind found that in both the companies, there was systematic
coordination among the various activities to achieve the organisational
goals. Every employee knew who was responsible and accountable to
whom. The only difference was that in his organisation, communication
took place only through the scalar chain whereas My Car Ltd. was allowing
the flow of communication in all the directions as per the requirement
which led to faster spread of information as well as quick feedback.

1. Identify the type of organisation which permits the flow of

communication in all the directions in My Car Ltd.
2. Also state an advantage of the type of organisation identified in part
(1) above.
3. State any two values which My Car Ltd. wants to communicate to the
society. (CBSE, OD 2016)

Answer:

1. An informal organisation permits the flow of communication in all

the directions in My Car Ltd.
2. Another advantage of informal organisation is that it helps to fulfill
the social needs of the members by giving them a sense of
 belongingness in the organisation and enhances their job
satisfaction.
3. The two values that My Car Ltd. wants to communicate to the
society are:

o Trust
o Social Responsibility

Question 9.
Kiran Industries is a company dealing in office furniture. The company
chose to diversify its operations to improve its growth potential and
increase market share. As the project was important, many alternatives
were generated for the purpose and were thoroughly discussed amongst
the members of the organisation. After evaluating the various alternatives,
Sukhvinder, the Managing Director of the company, decided that they
should add ‘Home Interiors and Furnishings’ as a new line of business
activity.

1. Name the framework, which the diversified organisation should

adopt, to enable it to cope with the emerging complexity? Give one
reason in support of your answer.
2. State any two limitations of this framework (CBSE, Sample Paper,
2015-16)

Answer:

1. Divisional structure should be adopted by the diversified

organisation to enable it to cope with the emerging complexity.
Reason: It leads to faster decision making, promotes flexibility and
initiative because each division functions as an autonomous unit.
2. The two limitations of divisional structure are as follows:

o There may be conflicts among the different divisions heads as in

pursuit of higher profits, each of them may seek maximum allocation
of resources at the cost of other divisions.
o The cost is high as each division is provided with separate set of
similar functions.

Question 10.
Rajeev, the owner of Pathways Constructions, decided to start a campaign
to create awareness among people for developing clean surroundings in
their area. He formed a team of 10 members to list the different ways for
cleaning the surroundings. One suggested to take the help of local
residents, another suggested that they may involve school-going children
in their venture. One more suggestion was to take the help of the
unemployed youth. On evaluation of different ways, it was decided to take
the help of local residents. To achieve the desired goal, various activities
are identified like

 Purchase of necessary items like dustbins, garbage bags, brooms,

etc.;
 Collection of garbage;
 Disposal of garbage, etc.

After identification of different activities, the work was allocated to

different members.

1. Identify the concepts of management involved in the above

situation and quote the lines which help in their identification.
2. Also identify the values which the company wants to communicate
to society. (CBSE, Sample Question Paper 2015

Answer:

1. The concepts of management involved in the above situation are

outlined below:

o Planning: ” One suggested to take help of local residents, another

suggested that they may involve school going children in their
venture. One more suggestion was to take the help of the
unemployed youth. On evaluation of different ways, it was decided
to take help of the local residents.”
o Organising: ” To achieve the desired goal, various activities are
identified like

 Purchase of necessary items like dustbins, garbage bags, brooms etc.

 Collection of garbage
 Disposal of garbage, etc.
After identification of different activities, the work was allocated to
different members.”

2. The values which the company wants to communicate to society are:

o Cleanliness
o Responsibility
Question 11.
Samir Gupta started a telecommunications company, ‘Donira Ltd.’, to
manufacture economical mobile phones for the Indian rural market with 15
employees. The company did very well in its initial years. As the product
was good and marketed well, the demand of the products went up. To
increase production, the company decided to recruit additional employees.
Samir Gupta, who was earlier taking all the decisions for the company, had
to selectively disperse the authority. He believed that subordinates are
competent, capable and resourceful and can assume responsibility for the
effective implementation of their decisions. This paid off and the company
was not only able to increase its production but also expanded its product
range.

1. Identify the concept used by Samir Gupta through which he was

able to steer his company to greater heights.
2. Also explain any three points of importance of this concept. (CBSE,
Delhi 2015)

OR
Neeraj Gupta started a company ‘Yo Yo Ltd.’ with ten employees to
assemble economical computers for the Indian rural market. The company
did very well in its initial years. As the product was good and marketed
well, the demand went up. To increase production, the company decided
to recruit additional employees. Neeraj Gupta, who was earlier taking all
the decisions for the company, had to selectively disperse the authority. He
believed that people are competent, capable and resourceful and can
assume responsibility for the effective implementation of their decisions.
This paid off and the company was not only able to increase its production
but also expanded its product range with different features.

1. Identify the concept used by Neeraj Gupta through which he was

able to steer his company to greater heights.
2. Also explain any three points of importance of this concept.

Answer:

1. The concept used by Sameer Gupta/ Neeraj Gupta through which he

is able to steer his company to greater heights is Decentralisation.
2. The three advantages of using decentralisation are as follows:

o Decentralisation helps to promote self-reliance and confidence

amongst the subordinates: When the subordinates are given
 freedom to take their own decisions they learn to depend on their
own judgment and develop solutions for the various problems they
encounter. Moreover, a decentralisation policy helps to identify
those executives who have the necessary potential to become
dynamic leaders.
o Relief to top management: Decentralisation reduces the need of
direct supervision and helps to save the time of top management for
persuing other important work.
o Quick decision-making: In a decentralised organisation, managers at
all levels are allowed to take such decisions independently which lie
within their area of jurisdiction. This makes the process of decision
making much faster.

Question 12.
Alliance Ltd. is engaged in manufacturing plastic buckets. The objective of
the company is to manufacture 100 buckets a day. To achieve this, the
efforts of all departments are coordinated and interlinked and authority-
responsibility relationship is established among various job positions. There
is clarity on who is to report to whom. Name the function of management
discussed above. (CBSE, 2015)
Answer:
Organising

Question 13.
National Vritech Ltd. has grown in size. It was a market leader but with
changes in business environment and with the entry of MNCs, its market
share is declining. To cope up with the situation, the CEO starts delegating
some of his authority to the General Manager, who also felt himself
overburdened and with the approval of CEO disperses some of his
authority to various levels throughout the organisation. Identify the
concept of management discussed above. (CBSE, Sample Paper 2014-15)
Answer:
Decentralisation

Question 14.
Sharda Ltd. is pursuing diversified activities which require a high degree of
specialisation. Identify the type of structure that should be followed by
Sharda Ltd. (CBSE, 2015)
Answer:
Functional structure
Question 15.
A company is manufacturing washing machines. There is a well-defined
system of jobs with a clear and definite authority, responsibility and
accountability in the company. But people are not allowed to interact
beyond their officially defined roles. As a result, the company is not able to
adapt to the changing business environment. The workforce is also not
motivated due to lack of social interaction. The company is facing
problems of procedural delays and inadequate recognition of creative
talents.

1. Suggest how the organisation can overcome the problems faced by

it.
2. Give any two benefits it will derive from your suggestions. (CBSE,
Sample Paper, 2014-15)

Answer:

1. The organisation can overcome the problem faced by it by adopting

informal organisation. Informal organisation emerges from within
the formal organisation when people interact beyond their officially
defined roles.
2. The two benefits of informal organisation are as follows:

o It helps to fulfill the social needs of the members by giving them a

sense of belongingness in the organisation and enhances their job
satisfaction .
o It contributes towards the fulfillment of organisational objectives by
compensating for inadequacies in the formal organisation.

ADDITIONAL QUESTIONS

Question 1.
Ishita works as a corporate event coordinator in an event management
company. She has been made an overall official incharge for organizing a
painting exhibition for one of the clients of the company. For ensuring that
the exhibition takes place successfully, she identifies the various activities
involved and divides the whole work into various task groups like
marketing committee, decoration committee and reception committee. In
order to facilitate coordination within and among committees, she
appoints a supervisor of each group. Each member in the group is asked to
report to their respective supervisors and all the supervisors are expected
to work as per Ishita’s orders.
In context of the above case:

1. Identify the function of management being performed by Ishita.

2. Describe briefly the various steps involved in the performance of the
function of management as identified in part (1) of the question.

Answer:

1. The Organising function of management is being performed by

Ishita.
2. The steps involved in the process of organizing are as follows:

o Identification and Division of Work: The first step in the process

of organising relates to identification and division of the work that
has to be performed in accordance with predetermined plans. This
helps to avoid duplication of activities and makes the work
manageable. It also ensures that the burden of work is being shared
among the employees.
o Departmentalisation: The next step in the process involves
grouping of similar activities into departments, units, sections etc.
using several criteria as a basis. This facilitates specialization.
o Assignment of Duties: Once departments have been created each
of them is placed under the charge of an individual and then jobs
are allocated to the members as per their job positions.
o Establishing Reporting Relationship: While assigning jobs each
member is told that from whom he /she has to take orders and to
whom he/she will be accountable. The establishment of such clear
reporting relationships help to create a well defined hierarchical
structure. It also facilitates coordination amongst various
departments.

Question 2.
After completing a course in travel and tourism, Karan started his own
travel agency. In order to ensure smooth functioning of his business, he
decided to create fourteen job positions divided into four departments on
the basis of functions namely, front office department including online
queries, reservations department for airways, railways and roadways,
accommodation booking department, and securing payments department.
In order to avoid any interdepartmental conflicts he decides to specify
clearly the lines of authority and areas of responsibility for each job
position.
In the context of the above case:

1. Which function of management is being described in the above

lines?
2. Identify the framework created by Karan within which all managerial
and operating tasks are to be performed in his organisation.
3. Name the type of the framework as identified in part (1) of the
question. Also, give any two of its advantages.

Answer:

1. The Organising function of management is being described in the

above lines.
2. Organisational structure is the framework created by Karan within
which all managerial and operating tasks are to be performed in his
organisation.
3. Karan has created a functional structure as job positions are divided
into four departments on the basis of functions namely, front office
department including online queries, reservations department for
airways, railways and roadways, accommodation booking
department, and securing payments department.
The two advantages of functional structure are as follows:

o A functional structure promotes work-related specialisation since it

places emphasis on specific functions. This helps to increase
efficiency in utilisation of manpower as employees perform similar
tasks within a department and are able to improve performance.
o It facilitates control and coordination within a department because
of similarity in the tasks being performed.

Question 3.
As the head boy and head girl of Trakashay Public School’, Deepak Chugh
and Deepika Chawla have been given the responsibility of hosting the
Teacher’s Day programme in the school. In order to conduct the
programme in a systematic way, Deepak and Deepika first called a meeting
of the student council. In the meeting they decided about the content of
the programme after taking into consideration the different available
alternatives and choosing the best alternative among them. Then the
various tasks required to be performed were identified and divided in
accordance with predetermined schedule made by them. After that they
grouped the similar activities into main groups as skit group, choir group,
instrumental music group and contemporary dance group. Then each
group was placed under the charge of a council member in accordance
with his/her skills and competencies. These council members were in turn
informed that they have to take orders and will be accountable only to
Deepak and Deepika so as to facilitate coordination amongst various
groups.
In context of the above case:

1. Identify and explain the functions of management being discussed.

2. Describe briefly any two points highlighting the importance of each
of the functions of management as identified in part (1) of the
question.
3. State any two values that ‘Prakashay Public School’ wants to
communicate to society.

Answer:

1. The Planning and Organising functions of management are being

discussed.
Planning is deciding in advance what to do, how to do, when to do
and who has to do it. It is one of the basic managerial functions.
Thus, it involves setting objectives and developing an appropriate
course of action to achieve these objectives. Organising is the
process of defining and grouping the activities of the enterprise and
establishing authority relationships among them.
2. The importance of the planning function of management is
described below:

o Planning provides directions: The well defined plans act as a guide

for deciding what course of action should be taken to attain the
organisational goals.
o Planning reduces the risk of uncertainty: Planning helps to reduce
the risk of uncertainty arising due to the dynamic nature of business
environment as it enables a manager to anticipate and meet
changes effectively.
The importance of the organizing function of management is
described below:
o Benefits of specialisation: Organising leads to a systematic
allocation of jobs amongst the work force. This not only helps to
reduce the workload of the employees but also leads to increased
productivity. This is because of the fact that specific employees are
assigned specific job on a regular basis which leads to specialisation.
 o Clarity in working relationships: The process of organising leads to
establishment of clear cut reporting relationships. This helps in
developing a hierarchical order thereby enabling the fixation of
responsibility and specification of the extent of authority to be
exercised by an individual.

3. The two values that Trakashay Public School’ wants to communicate

to society are:

o Trust
o Participation

Question 4.
The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear
manufacturing company, can be broadly grouped into five departments
namely; production, purchase, marketing, accounts and personnel. Over
the years the company has grown and expanded its operations manifolds.
The company now intends to diversify into leather bags segment. So its
management has decided to restructure its operations. They plan to create
separate product divisions for each product line wherein the functioning of
each division will be further divided into five departments namely;
production, purchase, marketing, accounts and personnel.
In context of the above case:
How is the company’s future organisational structures likely to be different
from the existing one? State any three points of differences between the
two types of organisational structures.
Answer:
At present, the company is following functional structure and it intends to
adopt a divisional structure in future.
The difference between Functional organisational structure and Divisional
organisational structure is as follows:

S.No. Basis Functional Structure Divisional Structure

It is based on product lines
1. Formation It is based on functions. and is supported by
functions.
It is difficult to fix
It is easy to fix responsibility
2. Responsibility responsibility on a
for performance.
department.
3. Specialisation Functional specialisation Product specialisation.
Question 5.
Rahunath works as a human resource manager in ‘Vanshika Housing Ltd.’ a
company engaged in the real estate business. He suggests to the
Managing Director of the company to start a sports club in the office
where friendly indoor matches can be organised amongst the employees
on every Saturday.
In context of the above case:

1. Identify the type of organisation that Rahunath is desirous of

promoting in the company.
2. State any three advantages of the type of organisation as identified
in part (a) of the question.

Answer:

1. Informal organisation is the type of organisation that Rahunath is

desirous of promoting in the company.
2. The three advantages of informal organisation are stated below:

o It leads to faster spread of information as well as facilitates quick

feedback.
o It helps to fulfill the social needs of the members by giving them a
sense of belongingness in the organisation and enhances their job
satisfaction.
o It contributes towards the fulfillment of organisational objectives by
compensating for inadequacies in the formal organisation.

Question 6.
Smriti works as a marketing manager in a small company. The company
has recently launched a new brand of room fresheners through aggressive
promotion. However, the product is less in demand and its sales are low.
Smriti decides to study the reasons for the poor likability of the product
through a market research. Keeping in view the volume of work, she knows
it will be impractical for her to handle it all by herself. In order to share her
work, she deploys a team of executives. She gives them the necessary
authority and assigns them the responsibility to conduct the research and
report back to her so that she can make the decisions.
In the context of the above case:
Identify and explain the concept used by Smriti to share her work and
authority with her subordinates.
Answer:
The concept used by Smriti to share her work and authority with her
subordinates is Delegation of authority.
Delegation of authority merely means the granting of authority to
subordinates to operate within prescribed limits.

Question 7.
Atul joins as a Regional Sales Head in the export division of a FMCG (fast
moving consumer goods) company. In a departmental meeting, he asks
one of this subordinates, Manik, to take charge of the company’s new
office in Dubai. He allocates the work to him and grants the necessary
authority. However, within a month by seeking regular feedback on the
extent of work accomplished from Manik, Atul realises that Manik is not
doing the work as per his expectations. So he takes away the authority
delegated to him and re delegates the work to Prakrit. Due to the time
wasted in this switch over, the work at the Dubai office suffers
tremendously and the company is not able to meet its desired goals.
In context of the above case:

1. Why is Manik supposed to give regular feedback about work to

Atul?
2. Can the authority granted to a subordinate be taken back and re-
delegated to another person?
3. Can Manik be held responsible for not meeting the work related
expectations of Atul? Give a suitable reason in support of your
answer.
4. Differentiate between authority, responsibility and accountability on
the basis of origin and flow.

Answer:

1. Manik is supposed to give regular feedback about work to Atul as he

has been granted authority and entrusted responsibility, so he
remains answerable for the outcome.
2. Yes, the authority granted to a subordinate can be taken back and
re-delegated to another person.
3. Yes, Manik can be held responsible for not meeting the work related
expectations of Atul as it is the obligation of a subordinate to
perform the assigned duty to the best of his ability and skill.
4.

S.No. Basis Authority Responsibility Accountability

Arises from formal Arises from
Arises from
1. Origin position in the delegated
responsibility.
organisation. authority.
 Flows upward
Flows downward from Flows upward from
from
2. Flow superior to subordinate to
subordinate to
subordinate. superior.
superior.

5.

Question 8.
Srijan is working as a sales manager in a publishing house. In order the
promote the new series of encyclopaedias, the company decides to
undertake door to door selling in the city. As the sales manager, Srijan is
given the target of selling 5000 units in one month. He appoints a team of
five salesmen for the purpose. Each salesman is given the target of selling
1000 units. At the end of the month only 4800 units are sold as one of the
salesman, Bobby, falls ill during the last week and is able to sell only 800
units.
In the context of the above case:
Will Srijan be still accountable for the performance of the assigned tasks to
Bobby? Why or why not? Give a suitable reason to support your answer.
Answer:
Yes, Srijan will still be accountable for the performance of the assigned
tasks to Bobby because only the responsibility for the work assigned can
be delegated. The ultimate responsibility of a superior is absolute and
cannot be delegated. Thus, irrespective of the extent of delegated
authority, the manager shall still be accountable to the same extent as
before delegation.

Question 9.
Sudhir is working as a purchase manager in a power sector compahy. All
his subordinates hold him in high regard for his exceptional managerial
skills. On one hand, as a manager, he is a tough task master and expects
strict compliance to the organisational rules and procedures from his
subordinates. On the other hand, he makes conscious efforts to develop
rapport with his subordinates by interacting freely with them during the
lunch breaks in the cafeteria. Many a times these chit chats helps him to
get an insight into the views and opinions of his team members about the
policies of the organisation.
In the context of the case:

1. Identify and explain the two types of organisations have been

discussed.
2. State any three differences between the types of organisations as
identified in part (a) of the question.
Answer:

1. Formal organisation and Informal organisation are the two types of

organisations which have been discussed.
Formal organisation is the structure of authority relationships
created deliberately by the management to achieve its objectives.
Informal organisation is a network of social relationships arising out
of the interaction among employees within an organisation.
2. The difference between Formal organisation and Informal
organisation is as follows:

S.No. Basis Formal Organisation Informal Organisation

It arises as a result of It arises as a result of social
1. Origin
company rules and policies. interaction.
It arises by the virtue of It arises out of personal qualities
2. Authority
position in the organisation. of the members.
It is directed by rules of the There is no set behaviour pattern
3. Behaviour
organisation. for the members.

Question 10.
Rakesh joins as a Head Librarian of a newly constructed medical college in
Pune. A team of four librarians is placed under him for the smooth
functioning of the library. Besides, he has been assigned eight people as
support service staff. On the second day of his joining, he is told get a
shipment of new books unloaded, stock the bookshelves, and then get all
waste (packaging, paper etc.) disposed off within a weeks time. In order to
ensure orderliness and speed in the process of setting up of the library, he
makes each of the four librarians in charge of five different subjects.
Keeping in mind their competence and experience he decides to give them
more authority so that they can make autonomous plans and assume the
responsibility for the effective implementation of their decisions.
In context of the above case:

1. Identify and explain the concept used by Rakesh keeping in mind

the competence and experience of the other librarians.
2. Describe briefly any three advantages of using the concept as
identified in part (a) of the question.

Answer:

1. Rakesh has used the concept of decentralisation keeping in mind the

competence and experience of the other librarians.
 2. The three advantages of using decentralisation are as follows:

o Decentralisation helps to promote self-reliance and confidence

amongst the subordinates: When the subordinates are given
freedom to take their own decisions, they learn to depend on their
own judgment and develop solutions for the various problems they
encounter. Moreover, a decentralisation policy helps to identify
those executives who have the necessary potential to become
dynamic leaders.
o Relief to top management: Decentralisation reduces the need of
direct supervision and helps to save the time of top management for
persuing other important work.
o Quick decision making: In a decentralised organisation managers at
all levels are allowed to take such decisions independently which lie
within their area of jurisdiction. This makes the process of decision
making much faster.

Question 11.
‘Home Creations Ltd.’ is a well known chain of large department store
offering various types of products under one roof. The company owns fifty
stores in various parts of the country. Each store is placed under the charge
of a manager who is allowed to run their stores autonomously by deciding
about the products which may be promoted, appointment of staff, ways to
handle customer complaints etc. As these managers have a deeper
knowledge of the local situations, it enables them to take these decisions
effectively keeping in view the local circumstances and consumers’ needs.
This approach helps to improve customer service and at the same time
serves to boost morale and increase the job satisfaction of the store
managers as it empowers them to innovate and use their initiatives.
In the context of above case:

1. Identify and explain the policy followed by ‘Home Creations Ltd.’ to

run their stores successfully.
2. Also, give any three points highlighting the importance of the
approach followed as identified in part (1) of the question.
3. List any two values that ‘Home Creations Ltd.’ wants to communicate
to its employees.

Answer:

1. The approach followed by ‘Home Creations Ltd.’ to run their stores

successfully is Decentralisation. Decentralisation refers to systematic
 effort to delegate to the lowest level all authority except that which
can be exercised at central points.
2. The importance of decentralisation is highlighted through the
following points:

o Develops initiative among subordinates: Decentralisation helps to

promote self reliance and confidence amongst the subordinates. The
lower managerial levels are empowered to take their own decisions
and they learn to depend on their own judgment. This helps to
identify those executives who have the necessary potential to
become dynamic leaders.
o Develops managerial talent for the future: Decentralisation is an
effective means for training employees to use their talent in real life
situations as it provides them many opportunities to prove their
abilities. Thus, it helps to create a pool of qualified employees who
may be considered to fill up challenging job positions internally
through promotions. At the same alsoit so helps to identify those
employees who may not be successful in assuming greater
responsibility.
o Quick decision making: Decentralisation facilitates quick decision
making as the employees are allowed to act independently within
their area of jurisdiction.

3. The two values that ‘Home Creations Ltd.’ wants to communicate to

its employees are:

o Initiative
o Trust

Question 12.
Kabir opens a retail mart in a local market. As he knows it will be
impossible for him to handle all work alone, he appoints Jasraj to perform
tasks on his behalf thereby reducing his workload. This decision provided
Kabir with more time to concentrate on important matters. Besides, he
recruits eight other persons as support staff. Over the years his business
earns a good name for itself. So he opens another outlet in the city.
Considering Jasraj’s competence, he gives the independent charge of
running the new outlet to him, thereby empowering him by giving him
autonomy in functioning of the outlet.
In the context of the above case:
 1. Identify the two concepts which reflect the transition in the role of
Jasraj in the above paragraph.
2. What are the factors that Karan must keep while giving the
independent charge of the new outlet to Jasraj?

Answer:

1. Delegation of authority: In the initial years of business, Jasraj’s role

is restricted. He is granted limited authority to perform tasks on
behalf of Kabir to reduce his workload and provide him with more
time to concentrate on important matters.
Decentralisation of authority: When Jasraj is given an independent
charge of the new outlet, he is empowered to take decisions
autonomously to ensure successful running of the outlet.
2. Karan needs to be careful while selecting those decisions related to
the outlet which will be taken by Jasraj independently and those that
will be retained with him. It is important to define the decision
making powers as complete decentralisation would imply the
delegation of all decision making functions to Jasraj and this would
obviate Karan’s role as the owner of the business.

Question 13.
Karan and Arjun are first cousins. After completing a course in journalism,
both of them join a leading newspaper company as sub-editors. Over the
years, due to their consistent hardwork, they are promoted to the post of
chief editors in different divisions. However, the way of their functioning is
totally different. Karan believes in the capabilities of his subordinates and
therefore follows the philosophy of selective dispersal of authority
throughout all the levels in his division. On the other hand, Arjun prefers to
function through strict controls and retains all the decision-making
authority with himself.
In the context of the above case:
How do Karan and Arjun differ in their policies related to the extent of
delegation of authority? Explain.
Answer:
Karan has adopted a decentralisation policy as he believes in the
capabilities of his subordinates. He follows the philosophy of selective
dispersal of authority throughout all the levels in his division.
Whereas Arjun follows a policy of centralisation as he prefers to function
through strict controls and retains all the decision-making authority with
himself.
Business Studies – Staffing
STAFFING
Staffing: Definition
Staffing is concerned with obtaining, utilising and maintaining a
satisfactory and satisfied work force.

Importance of the Staffing

 It helps in discovering and obtaining competent personnel for

various jobs within an organisation.
 By putting right person on the right job, it leads to a higher
performance of the employees.
 It ensures the continuous survival and growth of the enterprise
through the succession planning for managers.
 It helps to ensure optimum utilisation of the human resources.
 It improves job satisfaction and morale of the employees through
objective assessment and fair rewarding for their contribution.

Steps Involved in the Staffing Process

 Estimating the manpower requirements on the basis of workload

analysis and workforce analysis.
 Recruitment is the process of searching for prospective employees
and stimulating them to apply for jobs in the organisation.
 Selection is the process of choosing from among the pool of the
prospective job candidates developed at the stage of recruitment.
 Placement and Orientation is done by giving the charge of the
post to the employee for which he has been selected. It also includes
introducing him to the other employees and familiarising him with
the rules and policies of the organisation.
  Training and development is done in order to ensure continuous
learning of their employees so that they contribute effectively and
efficiently towards the realisation of the organisational goals.
Training is given to make a person job fit whereas development
seeks to increase their potential for higher level jobs.
 Performance appraisal is undertaken to evaluate the worth of an
employee to the organisation.
 Promotion and career planning are an integral part of people’s
career and enhance their job satisfac tion.
 Compensation refers to all forms of pay or rewards going to
employees.

HUMAN RESOURCES MANAGEMENT

Human Resource Management: Definition
Human Resource Management refers to the process of managing the
employees within an organisation as human factor is recognised as the
most important instrument of success in an organisation.

Staffing is considered to be an inherent part of human resource

management as it deals with the human element of management and is
concerned with obtaining, utilising and maintaining a satisfactory and
satisfied work force.

Scope of Human Resource Management:

 Recruitment
 Analysing jobs, collecting information about jobs to prepare job
descriptions.
 Developing compensation and incentive plans.
 Training and development of employees for efficient performance
and career growth.
 Maintaining labour relations and union management relations.
 Handling grievances and complaints.
 Providing for social security and welfare of employees.
 Defending the company in law suits and avoiding legal
complications

RECRUITMENT
Recruitment: Definition
Recruitment may be defined as the process of searching for prospective
employees and stimulating them to apply for jobs in the organisa tion.
Sources of Recruitment

1. Internal recruitment

o Promotion
o Transfer

2. External recruitment

o Direct Recruitment
o Casual Callers
o Advertisement
o Employment Exchange
o Placement Agencies and Management
o Consultants
o Campus Recruitment
o Recommendations of Employees
o Labour Contractors
o Advertising on Television
o Web Publishing

SELECTION
Selectiort: Definition
Selection is the process of choosing the best candidate from a pool of
applicants for the job.

Important Tests Used for Selection of Employees:

 Intelligence Tests include important psychological tests used to

measure the level of intelligence quotient of an individual.
 Aptitude Test is a measure of an individual’s potential for learning
new skills.
 Personality Tests give an insight into a person’s emotions,
reactions, maturity and value system etc.
 Trade Test seek to measure the existing skills of the individual.
 Interest Tests are used to know the pattern of interests or
involvement of a person.

Steps in the Process of Selection

 Preliminary Screening of the applications is done to eliminate

those applicants who do not fulfill the minimum requirements of the
job.
  Selection Tests help in an objective assessment of certain
characteristics of individuals and is free from personal bias.
 Employment Interview is a face-to- face interaction between the
interviewer(s) and prospective candidate.
 Reference and Background check is carried out for the purpose of
verifying information and gaining additional information about an
applicant.
 Selection Decision is made from among the candidates who pass
the tests and interview.
 The selected candidates are asked to undergo a medical
examination before the job offer is made.
 Job Offer is made to those applicants who have passed all the
previous tests.
 Contract of Employment is issued to the selected candidate and
includes information like job title, duties, responsibilities, date of
joining, pay and allowances, etc. if the applicant accepts the job
offer.

Differences between Recruitment and Selection

S.No. Basis Recruitment Selection

Recruitment may be
defined as the process of
Selection is the process of choosing
searching for prospective
1. Meaning the best candidate from a pool of
employees and stimulating
applicants for the job.
them to apply for jobs in
the organisation.
2. Process It is a positive process. It is a negative process.
3. Sequence It precedes selection. It follows recruitment.

TRAINING AND DEVELOPMENT

Training: Definition
Training is the process of increasing the knowledge and skill of the
employees to perform specific jobs.

Development: Definition
Development is the process of the overall growth of a person in all aspects.

Benefits of Training to the Organization

  Training imparts systematic learning to employees thereby helping
to avoid wastage of efforts and money and is considered better than
the hit and trial method.
 It increases the employees’ productivity both in terms of quantity
and quality, leading to higher profits.
 Training increases the morale of the employees and reduces
absenteeism and employee turnover.
 It helps in obtaining effective response to fast changing environment
– technological and economic.
 Training equips the future manager who can take over in case of
emergency.

Benefits of Training to the Employee

 Training leads to better career of the individual due to improved

skills and knowledge during training.
 It helps an individual earn more due to increased productivity.
 It makes the employee more efficient in handling machines and less
prone to accidents.
 It increases the satisfaction and morale of employees.

Methods of Training:

1. Internship Training is a method for providing on the job training to

the employees through a joint programme in which educational
institutions and business firms cooperate. The learners carry on with
their regular studies for the prescribed period. They also work in
some factory or office to acquire practical knowledge and skills
related to their specific field of expertise.
2. Vestibule training is a popular method for providing off the job
training through which the trainees learn their jobs on the
equipment they will be using at tKeir actual work place. This is
usually done when employees are required to handle sophisticated
machinery and equipment.
3. Induction training is given to the new employees in order to
familiarise them with the key employees of the organisation and
give information about the working of the organisation.
4. Apprenticeship training is provided to the people seeking to enter
skilled jobs like plumbers, electricians or iron workers. They are
provided training under the guidance of a master worker.

Differences between Training and Development

S.No. Basis Training Development
It is a process of increasing It is a process of learning and
1. Meaning
knowledge and skills. growth.
It is to enable the
It is to enable the overall growth of
2. Purpose employee to do the job
the employee.
better.
3. Scope It is a job oriented process. It is a career oriented process.
It is suitable for the Developmental programmes are
Level of
4. employees at the lower designed for middle and top level
employees
level. managers.

MIND MAP

LATEST CBSE QUESTIONS

Question 1.
Why is ’employment interview’ conducted in the process of
selection? (CBSE, Delhi 2017)
Answer:
An employment interview is a formal, in-depth conversation conducted to
evaluate the applicant’s suitability for the job in the process of selection. At
the same time the interviewee may also seeks information from interviewer
(if needed).

Question 2.
Alpha Enterprises is a company manufacturing water geysers. The company
has a functional structure with four main functions-Production, Marketing,
Finance and Human Resource. As the demand for the product grew, the
company decided to hire more employees.
Identify the concept which will help the Human Resource Manager in
deciding the actual number of persons required in each
department. (CBSE, Delhi 2017)
Answer:
Workload analysis is the concept which will help the Human Resource
Manager in deciding the actual number of persons required in each
department.

Question 3.
Explain briefly ‘transfers’ and ‘promotions’ as internal sources of
recruitment. (CBSE, Delhi 2017)
Answer:
 1. Transfer: Transfers involves a horizontal movement of employees. In
case of transfers an employee is shifted from one job to another,
one department to another or from one shift to another. However,
the salary remains unchanged and it may not result in any
substantive change in the responsibilities and status of the
employee. It is a good source of filling the vacancies with employees
from over-staffed departments and is thus helpful in avoiding
termination and in removing individual problems and grievances. At
times it serves as a useful tool for training of employees for learning
new jobs skills .
2. Promotion: Promotion is a vertical shifting of employees to a higher
position, thereby increase in the responsibilities, facilities, status and
salary. It helps to boost the morale, loyalty and level of job
satisfaction of the employees. Moreover, a promotion at the higher
level may lead to a chain of promotions at lower levels in the
organisation.

Question 4.
Why is ‘Aptitude Test’ conducted in the process of selection? (CBSE, OD
2017)
Answer:
An aptitude test seeks to measure the potential of individuals for learning
new skills.

Question 5.
Bhagwati Enterprises is a company engaged in the marketing of air-
conditioners of a famous brand. The company has a functional structure
with four main functions—Purchase, Sales, Finance and Staffing. As the
demand for the product grew, the company decided to recruit more
employees. (CBSE, OD 2017)
Idetify the concept which will help the Human Resource Manager to find
out the number and type of personel availale so that he could decide and
recruit the required number of persons for each department.
Answer:
Workforce analysis will help the human resource manager to find out the
number and type of personnel available in the organization.

Question 6.
Explain briefly ‘Casual Callers’ and ‘Labour Contractors’ as external sources
of recruitment.
(CBSE, OD 2017)
Answer:
 1. Casual callers: Casual callers is considered to be relatively cheaper
source of recruitment in comparision to the other sources. This is
because the organizations has to primarily maintain a database in
their offices of the unsolicited applicants who sent their resume in
anticipation of job prospects. As an when a vacancy arises in the
organization such job-seekers may be screened.
2. Labour contractors: Labour contractors proves to be a very useful
resource for appointing the required number of unskilled workers at
short notice. However, if the labour contractors who themselves are
the employees of the organization decide to leave it for any reason
then all the workers recommended by him are also likely to leave the
work along with him.

Question 7.
Human Resource Management includes many specialized activities and
duties which the human resource personnel must perform. In the light of
this statement, explain any four such duties performed by Human Resource
Manager. (CBSE, Sample Paper, 2017)
Answer:
Human Resource Management includes many specialised activities and
duties which the human resource personnel must perform. These duties are
stated below:

 Recruitment i.e., search for qualified people and stimulating them to

apply for the job within the organisation.
 Prepare job descriptions by analysing jobs, collecting information
about jobs etc.
 Developing suitable compensation and incentive plans for the
employees.
 Designing appropriate training and development of employees to
foster efficient performance and career growth.

Question 8.
Resolutions Pvt. Ltd. is a publishing company. Its book on Business Studies
for class XII is in great demand. As a result, the employees in the marketing
department are always racing against time. The employees have to work
overtime and on holidays to cater to the demand.
Managers in the marketing department are under stress as they have to
handle more than two territories. The work stress has led to dissatisfaction
among the employees and managers.
 1. Name and explain the step of staffing process which has not been
performed properly.
2. State the next two stages immediately following the step identified
in part ‘a’.
(CBSE, Sample Paper, 2017)

Answer:

1. The step of staffing process which has not been performed properly
is:
Estimation of manpower requirements: It is the first step in the
staffing process and is carried out with the help of workload analysis
(assessment of the number and types of human resources necessary
for the performance of various jobs and accomplishment of
organisational objectives) and work force analysis (assessment of the
number and type available).
2. The next two stages immediately following the step Estimation of
manpower requirement are as follows:

o Recruitment: Recruitment may be defined as the process of

searching for prospective employees and stimulating them to apply
for jobs in the organisation.
o Selection: Selection is the process of choosing the best candidate
from a pool of applicants.

Question 9.
Joseph Bros is a firm manufacturing jute lampshades. It uses leftover jute
pieces from various jute factories to manufacture economical lampshades
which are supplied to various hotels in nearby towns. It employs men and
women from nearby villages as workers for creating good lampshade
designs.
Joseph Bros, is not able to meet its targets. Namish, the supervisor of the
company, was told to analyse the reasons for the poor performance.
Namish found the following problems and suggested certain solutions in
the working of the business. The number of workers employed was less
than what was required for the work. As a result, the existing workers were
overburdened. The firm decided to search for new workers and it asked the
present employees to introduce candidates or recommend their friends
and relatives to the firm. This enabled the firm to ‘put people to jobs’ and
assured the attainment of objectives according to plans.
 1. Identify the functions of management being performed by the firm
in the above situation.
2. Name the concept and its source used by the firm to attract more
workers for the firm.
3. State any two values being followed by Jacob Bros. (CBSE, Sample
Paper 2016)

Answer:

1. The ‘Staffing’ function of management is being performed by the

firm.
2. Recruitment is the concept used by the firm to attract more workers
to the firm.
The firm is planning to use the external source of recruitment i.e
‘Recommendation of present employees’ to attract more workers to
the firm.
3. The two values that are being followed by Jacob Bros are:

o Generating employment
o Optimum utilisation of resources.

Question 10.
Aakansha, Nikita and Parishma are the owners of a handicraft unit in the
urban area of Dibrugarh in Assam, which is involved in the manufacturing
and marketing of Sital Pati, traditional mats and Jappi (the traditional
headgear). They decided to shift this manufacturing unit to a rural area
with an objective of reducing the cost and providing job opportunities to
the locals.
They followed the functional structure in this organisation with a view to
increasing managerial and operational efficiency.
They assessed and analysed the type and number of employees required,
keeping in mind that they had to encourage the women and the people
with special needs belonging to the rural area.
State the next three steps that they will have to undertake for obtaining a
satisfied workforce for their handicraft unit.
(CBSE, Sample Paper 2016)
Answer:
The next three steps that they will have to undertake for obtaining a
satisfied workforce for their handicraft unit are as follows:
  Recruitment: Recruitment may be defined as the process of
searching for prospective employees and stimulating them to apply
for jobs in the organisation.
 Selection: Selection is the process of choosing the best candidate
from a pool of applicants.
 Placement and Orientation: Placement refers to the process of
giving the charge of the job for which the employees have been
appointed. Orientation may involve a series of activities related to
introducing the new employee to other employees and familiarising
him with the rules and policies of the organisation. Moreover, he is
taken around the workplace and made aware of the fire safety
policy, canteen, conference room etc.

Question 11.
Mrs. Rajlaxmi is working as the Human Resource Consultant in a firm that
manufactures cosmetics, which is facing a problem of high employee
turnover. The CEO of the company has invited suggestion from her for
retaining the talented employees and reducing the employee turnover.
Mrs. Rajlaxmi recommends that the good employees be rewarded in a way
that it creates a feeling of ownership among the employees and at the
same time, makes them contribute towards the growth of the organisation.

1. Identify the incentive and explain its type which has been suggested
by Mrs. Rajlaxmi to the CEO of the company.
2. Also explain any two other incentives of the same type. (CBSE,
Sample Paper 2016)

Answer:

1. Co-partnership / stock option, which is a type of financial incentive,

has been suggested by Mrs. Rajlaxmi to the CEO of the company.
2. The two other financial incentives are described below:

o Retirement Benefits: An organisation may provide several

retirement benefits to its employees after their retirement such as
provident fund, pension and gratuity which provide financial
security. These benefits serve as an incentive when they are in
service in the organisation.
o Perquisites: In many companies perquisites and fringe benefits are
offered over and above the salary such as car allowance, housing,
medical aid, and education to the children etc.
Question 12.
Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the
Human Resource Manager of Senor Enterprises Ltd. decided to leave the
company.
The Chief Executive Officer of the company called Jyoti, the Human
Resource Manager and requested her to fill up the vacancies before
leaving the organisation. Informing that her subordinate Miss Alka Pandit
was very competent and trustworthy, Jyoti suggested that if she could be
moved up in the hierarchy, she would do the needful. The Chief Executive
Officer agreecs for the same. Miss Alka Pandit contacted Keith Recruiters
who advertised for the post of marketing head for Senor Enterprises Ltd.
They were able to recruit a suitable candidate for the company.
Raman’s vacancy was filled up by screening the database of unsolicited
applications lying in the office.

1. Name the internal/external sources of recruitment used by Senor

Enterprises Ltd. to fill up the above stated vacancies.
2. Also state any one merit of each of the above identified source of
recruitment.
(CBSE, Delhi 2016)

Answer:

1. The internal and external sources of recruitment used by Senor

Enterprise Ltd. to fill up the above stated vacancies are stated below:

o The vacancy for the post of Human Resource Manager has been
filled up through Promotion.
o The vacancy for the post of Marketing Head has been filled up
through the Placement Agencies and Management Consultants.
o The vacancy for the post of Assistant Manager has been filled up
through Casual Callers.

2. The relative merit of each of the internal and external sources of

recruitment used by Senor Enterprise Ltd. to fill up the above stated
vacancies are stated below:

o Promotion: It boosts the morale of not only the employee who is

promoted but also of other employees as they get an assurance that
their competence will also be recognised in due course.
 o Placement Agencies and Management Consultants provide
specialised services to the organisations to recruit technical,
professional and managerial personnel at middle and top level.
o Casual Callers as a source of recruitment reduces the cost of
recruiting workforce in comparison to other sources.

Question 13.
Zenith Ltd. is a highly reputed company and many people wanted to join
this company. The employees of this organisation are very happy and they
discuss how they came in contact with this organisation.
Aman said that he was introduced by the present Sales Manager, Mr. John.
Benu said that he had applied through the newspaper and was appointed
as the H.R. Manager.
Vaibhav said that he was neither related to any employee of the
organisation nor was there any advertisement in the newspaper, even then,
he was directly called from IIM Ahmedabad from where he was about to
complete his MBA.

1. The above discussion is indicating an important function of

management. Name the function of management.
2. The management function identified in part (1) follows a particular
process. Explain the step of this process which is being discussed in
the above paragraph.(CBSE, Sample Paper 2015)

Answer:

1. The function of management being referred to in the above lines is

‘Staffing’.
2. Recruitment is the step in the staffing process which is being
discussed in the above paragraph. Recruitment may be defined as
the process of searching for prospective employees and stimulating
them to apply for jobs in the organisation.
The various sources of recruitment mentioned in the above
paragraph are:
Aman: Recommendation of present employee.
Benu: Advertisement in newspaper Vaibhav: Campus recruitment.

Question 14.
Blue Heavens Ltd. purchased a new machinery from Germany for
manufacturing some auto components. It was a cost-effective and quality
production machine but during the production process, manager observed
that the quality of the production was not as per standards. On
investigation, it was found that there was lack of knowledge of using these
hi-tech machines. So, frequent visits by engineers were required from
Germany but this resulted in high overhead charges.
Suggest what can be done to develop the skills and abilities of employees
for producing quality products by using these hi-tech machines. Also state
how the employees or the organisation will be benefited by your
suggestion. (CBSE, Sample Paper 2015)
Answer:
Training should be provided to the employees to develop their skills and
abilities for producing quality products by using these hi-tech machines.
The benefits of imparting training to the employee are as follows:

1. Better career: Training leads to better career opportunities for the

employees as it helps to improve their skills and knowledge of doing
the job.
2. Increased earnings: Training leads to increased performance by the
employees thereby helping them to earn more.
3. Increased efficiency: Training makes the employees more efficient
in handling machines and less prone to accidents.
4. Improved motivation: Training increases the satisfaction and
morale of employees thereby motivating them to work with greater
enthusiasm.

Question 15.
The workers of Gargya Ltd. are unable to work on new computerised
machines imported by the company to fulfill the increased demand.
Therefore, the workers are seeking extra
guidance from the supervisor and the supervisor is overburdened with
frequent calls of the workers.
Suggest how the supervisor, by increasing the skills and knowledge of
workers, can make them handle their work independently.
Also state any three benefits that the workers will derive by the decision of
the supervisor.
(CBSE, OD 2015)
OR
The workers of Vyam Ltd. are unable to work on new and hi-tech machines
imported by the company to fulfill the increased demand. Therefore, the
workers are seeking extra guidance from the supervisors.
The supervisor is overburdened with the frequent calls of workers.
Suggest how the supervisor, by increasing the skills and knowledge of
workers, can make them handle their work independently?
Also state any three benefits that the workers will derive by the decision of
the supervisor.
(CBSE, Delhi 2015)
Answer:

1. The supervisor may provide Vestibule training to the workers in

order to enable them handle their work independently.
Vestibule training is a popular method for providing off the job
training during which the trainees learn their jobs on the equipment
they will be using at their actual work place. This is usually done
when employees are required to handle sophisticated machinery
and equipment.
2. The benefits of imparting training to the employee are as follows:

o Better career: Training leads to better career opportunities for the

employees as it helps to improve their skills and knowledge of doing
the job.
o Increased earnings: Training leads to increased performance by the
employees thereby helps them to earn more.
o Increased efficiency: Training makes the employees more efficient
in handling machines and less prone to accidents.

Question 16.
Mohit Gupta is working with Yellow Security Services Ltd. He is also
recruiting security guards for the company. The company provides security
services in Delhi and Noida at short notice to various companies. The
guards are recruited on a temporary basis. The guards provided by this
company are known for their honesty and punctuality. Mohit Gupta is well-
known in his village for providing employment to unskilled people.

1. Name the source of recruitment used by Yellow Security Services

Ltd.
2. State any one disadvantage of this source of recruitment.
3. Identify the need of security guards which is being fulfilled by the
company as per Maslow’s need hierarchy.
4. Identify any two values communicated to society in the above stated
case. (CBSE, OD 2015)

Answer:

1. External source of recruitment i.e. Labour contractor has been used

by Yellow Security Services Ltd.
 2. One disadvantage of the external source of recruitment is that the
new employees may take longer time to settle in the organisation.
3. The basic physiological needs of the security guards are being
fulfilled by the company.
4. The two values that are being communicated to the society are

o Reliability /Dependability
o Generating employment opportunities

Question 17.
Prashant, the Director of a company, is planning to manufacture rugs for
utilising waste materials from one of his garment factories. He decided that
this manufacturing unit will be set-up in a rural area so that people of that
area will have more job opportunities. For this, he wanted four different
heads for Sales, Accounts, Purchase and Production Departments. He
decided that one of them will be a differently-abled person, another from a
minority community and one from a disadvantaged section of society. He
gave an advertisement in the newspaper for the above vacancies.

1. Identify and state the next three steps Prashant has to follow in the
staffing process after advertising for the above vacancies.
2. Identify any two values that Prashant wants to communicate by
setting up this manufacturing unit. (CBSE, OD 2013)

Answer:

1. The next three steps to be followed by Prashant in the staffing

process after advertising for the above vacancies are as follows:

o Selection: Selection is the process of choosing the best candidate

from a pool of applicants.
o Placement and Orientation: Placement refers to the process of giving
the charge of the job for which they have been appointed.
Orientation may involve a series of activities related to introducing
the new employee to other employees and familiarising him with the
rules and policies of the organisation. Moreover, he is taken around
the workplace and made aware of the fire safety policy, canteen,
conference room etc.
o Training and Development: Organisations either have in-house
training centres or make alliances with training and educational
institutes. This is done to ensure continuous learning of their
employees in order to strengthen their competencies for both
 present and future jobs. This helps to motivate them and enables
them to perform better and contribute more towards the realisation
of the organizational effectiveness and efficiency.

2. The two values that Prashant wants to communicate by setting up

this manufacturing unit are:

o Optimum utilisation of resources

o Rural development.

Question 18.
Nishant, the director of a garment company, is planning to manufacture
bags for the utilisation of waste material from one of his garments unit. He
has decided that his manufacturing unit will set-up in a rural area of Odisha
where people have very few job opportunities and labour is available at
very low rates. He also thought of giving equal opportunities to men and
women.
For this, he wanted four different heads for sales, accounts, purchase and
production. He gave an advertisement and short listed ten candidates per
post after conducting different selection tests.

1. Identify and state the next three steps for choosing the best
candidate out of the short¬listed candidates.
2. Also identify two values which Nishant wants to communicate to
society by setting up this manufacturing unit.
(CBSE, Delhi 2013; OD 2013)

Answer:

1. The next three steps to be followed by Nishant in the selection

process after giving an advertising and short listing ten candidates
per post after conducting different selection tests are as follows:

o Employment Interview: It is a face-to-face interaction between the

interviewers and prospective candidate. It involves a formal, in-depth
conversation that is conducted to evaluate the applicant’s suitability
for the job.
o Reference and Background Checks: At the time of filling up of the
job application form,the prospective candidates are required to
provide names, addresses, and telephone numbers of references for
the purpose of verifying information and gaining additional
information about him/her.
 o Selection Decision: The final decision about the selection is made
from among the candidates who pass the tests and interview.

2. The two values that Nishant wants to communicate to the society by

setting up this manufacturing unit are:

o Rural development
o Gender equality

Question 19.
Harish, the director of a company, is planning to manufacture stuffed toys
for utilising waste materials from one of his garment factories. He decided
that this manufacturing unit will be set-up in a rural area so that people of
that area will have more job opportunities. For this, he selected Rehman,
Anita Banerjee, Harpreet Kaur and Umesh (a differently abled but very
intelligent and creative person in designing) as the heads of Sales,
Accounts, Purchase and Production Departments respectively.

1. Identify and state the next three steps that Harish has to follow in
the staffing process after selecting the heads of different
departments.
2. Identify any two values that Harish wants to communicate by
setting-up this manufacturing unit. (CBSE, Delhi 2013)

Answer:

1. The next three steps that Harish has to follow in the staffing process
after selecting the heads of different departments are as follows:

o Placement and Orientation: Placement refers to the process of

giving the charge of the job for which they have been appointed.
Orientation may involve a series of activities related to introducing
the new employee to other employees and familiarising him with the
rules and policies of the organisation. Moreover, he is taken around
the workplace and made aware of the fire safety policy, canteen,
conference room etc.
o Training and Development: Organisations either have in-house
training centres or make alliances with training and educational
institutes. This is done to ensure continuing learning of their
employees and in order to strengthen their competencies for both
present and future jobs. This helps to motivate them and enables
them to perform better and contribute more towards the realisation
of the organizational effectiveness and efficiency.
 o Performance Appraisal: It is a process of evaluating the worth of an
employee to the organisation. It may be done in both formal and
informal way. The process performance appraisal includes defining
the job, appraising performance and providing feedback.

2. The two values that Harish wants to communicate to the society by

setting up this manufacturing unit are:

o Rural development
o Sustainable development

Question 20.
Sahil, the director of a garments company, is planning to manufacture bags
for the utilisation of waste materials from one of his garments units. He
decided that his manufacturing unit will be set up in the rural area of
Odisha where people have very less job opportunities and labour is
available at a very low rate. He also thought of giving equal opportunities
to men and women.
For this, he selected S. Chatterjee, Inderjeet Kaur, Aslam and Sarabjeet as
heads of the Sales, Accounts, Purchase and Production Departments.

1. Identify and state the next two steps that Sahil has to follow in the
staffing process after selecting the above heads.
2. Also identify two values which Sahil wants to communicate to
society by setting up this manufacturing unit. (CBSE, OD 2013)

Answer:

1. The next two steps that Sahil has to follow in the staffing process
after selecting the above heads are:

o Placement and Orientation: Placement refers to the process of

giving the charge of the job for which they have been appointed.
Orientation may involve a series of activities related to introducing
the new employee To other employees and familiarising him with
the rules and policies of the organisation. Moreover, he is taken
around the workplace and made aware of the fire safety policy,
canteen, conference room etc.
o Training and Development: Organisations either have in-house
training centres or make alliances with training and educational
institutes. This is done to ensure con¬tinuous learning of their
employees and in order to strengthen their competencies for both
present and future jobs. This helps to motivate them and enables
 them to perform better and contribute more towards the realisation
of the organisational effectiveness and efficiency.

2. The two values that Sahil wants to communicate to the society by

setting up this manufacturing unit are:

o Generating employment opportunities

o Gender equality

ADDITIONAL QUESTIONS

Question 1.
Owing to the increased workload after demonetisation, the income tax
employees of Karnataka and Goa region had urged the centre to increase
manpower of the I-T department by filling up 35% vacancies which were
lying vaccant. As there were confirmed reports about misuse of bank
accounts, foreign exchange mechanism, gold purchases and adoption of
various other dubious means for investing the unaccounted cash.
In context of the above case:

1. Identify and explain the function of management being discussed in

the above lines.
2. Identify and explain the particular step related to the function of
management as identified in part (1) of the question which has
already been performed. Also, state the next three steps to be
performed after this step.

Answer:

1. Staffing is the function of management which is being referred to in

the above lines. The managerial function of staffing is concerned
with obtaining and maintaining a satisfactory and satisfied
workforce.
2. The step in the process of staffing which has already been carried
out is Estimating manpower requirements.
Estimating the Manpower Requirements: It is the first step in the
staffing process and is carried out with the help of workload analysis
(assessment of the number and types of human resources necessary
for the performance of various jobs and accomplishment of
organisational objectives) and work force analysis (assessment of the
number and type available).
The next three steps to be performed after estimating manpower
requirements are described below:
 o Recruitment: Recruitment may be defined as the process of
searching for prospective employees and stimulating them to apply
for jobs in the organisation.
o Selection: Selection is the process of choosing the best candidate
from the pool of applicants.
o Placement and Orientation: Placement refers to the process of giving
the charge of the job for which they have been appointed.
Orientation may involve a series of activities related to introducing
the new employee to other employees and familiarising him with the
rules and policies of the organisation. Moreover, he is taken around
the workplace and made aware of the fire safety policy , canteen,
conference room etc.

Question 2.
Sia plans to start a play school at a prime location in the city. She offers a
partnership proposal to her family friend Jyotika who has done a diploma
in human resource management. As Sia understands that human resource
management is critical to starting and running the school. The school
needs an experienced and dynamic principal. It also needs talented and
dedicated teachers and a competent administrative staff. Therefore, after
determining the organisational structure of the school she initiates the
staffing process with the help of Jyotika to fill in the various job positions
as staffing is considered to be an inherent part of human resource
management.
In the context of the above case:

1. Outline the concept of human resource management.

2. Why is staffing is considered to be an inherent part of human
resource management?

Answer:

1. Human Resource Management refers to the process of managing

the employees within an organisation as human factor is recognised
as the most important instrument of success in an organisation.
Therefore, it is a specialised activity which may require the expertise
of many people depending upon the nature and size of the business.
2. Staffing is considered to be an inherent part of human resource
management as it deals with the human element of management
and is concerned with obtaining, utilising and maintaining a
satisfactory and satisfied work force.
Question 3.
Nakul belongs to a small village in Varanasi. Being the only literate person
in his immediate family, he decides to settle in a city. So he opens a sweets
shop in Chandni Chowk, Delhi as he possesses extraordinary culinary skills.
Very soon he starts getting requests from his cousins in the village to
engage them in some kind of job in his business. Considering it to be his
moral obligation, he engages five of his cousins in his business without
paying any specific attention to their individual capabilities. This leads to
wastage of materials, time, effort and energy, resulting in lower
productivity and poor quality of products. As a result, the profitability of his
business starts falling. Soon, he realised that for the success of the business
it is essential that right kind of people must be available in right number at
the right time.
In the context of the above case:

1. Identify and explain the function of management that has been

overlooked by Nakul.
2. Describe briefly the importance of the function of management as
identified in part (1).

Answer:

1. Staffing is the function of management that has been overlooked by

Nakul.
Staffing is the process of manning the roles designed into the
organisational structure. It is concerned with obtaining, utilising and
maintaining a satisfactory and satisfied work force. –
2. The importance of the staffing function of management is described
below:

o It helps in discovering and obtaining competent personnel for

various jobs within an organisation.
o By putting right person on the right job, it leads to a higher
performance of the employees.
o It ensures the continuous survival and growth of the enterprise
through the succession planning for managers.
o It helps to ensure optimum utilisation of the human resources. By
avoiding over manning, it prevents under-utilisation of personnel
and high labour costs. At the same time it avoids disruption of work
by indicating in advance the shortages of personnel.
o It improves job satisfaction and morale of the employees through
objective assessment and fair rewarding for their contribution.
Question 4.
Anuroop runs a law firm in Hyderabad. His firm offers valuable financial
and legal consultancy services to the clients. Whenever the firm hires any
new employees, on the first day of their joining, they are welcomed to the
organisation and are given details about hours of work, holiday requests,
sickness procedure, dress code, lunch arrangements, introduced to the
daily operations and key people in the workplace, etc. They are also
familiarised with the organisation’s policies and procedures, including
complaints and dispute resolution, sexual harassment, emergency exits and
evacuation procedure.
In the context of the above case:

1. Name the type of training which is being referred to in the above

lines.
2. Identify and explain the human needs of the new employees that are
being fulfilled by Anuroop through this training.

Answer:

1. Induction training is being referred to in the above lines.

2. The various types of human needs of the new employees that are
being fulfilled by Anuroop through induction, training are stated
below:

o Basic Physiological Needs: These needs are most basic in the

hierarchy and are linked to primary needs like hunger, thirst, shelter
etc. “they are given details about hours of work, holiday requests,
sickness procedure, dress code, lunch arrangements etc.”
o Safety/Security Needs: These needs offer security and protection
from physical and emotional harm. “They are also familiar with the
organisation’s policies and procedures, including complaints and
dispute resolution, sexual harassment, emergency exits and
evacuation procedure.”
o Affiliation/Belonging Needs: These needs refer to affection, sense of
belongingness, acceptance and friendship. “Whenever the firm hires
any new employees, on the first day of their joining, they are
welcomed to the organisation.”

Question 5.
Deeksha is the general manager of a firm offering Telemarketing services.
Telemarketing is a method of direct marketing in which a representative of
the company solicits prospective customers to buy products or services,
either over the phone or through a subsequent face to face, or Web
conferencing appointment scheduled during the call. Deeksha ensures that
all the call centre representatives are well versed with the local languages
so that they can interact effectively with the prospective buyers. Moreover,
the employees are provided training to improve upon their
troubleshooting skills so that they do not spend too much time with every
customer. By acquiring these skills the callers are able to add value to their
message and also shorten the call durations, leading to increased customer
satisfaction and profitability of the business.
As a part of the firm’s policy, Deeksha encourages women, persons from
backward communities and persons with special abilities to assume
responsible positions in the organisation.
In context of the above case:

1. Identify the type of communication barriers that Deeksha is able to

overcome by ensuring that all the call centre representatives are well
versed with the local languages.
2. What are benefits of training employees to an organisation?
3. List any two values that the firm wants to communicate to the
society.

Answer:

1. Deeksha is able to overcome the semantic barriers by ensuring that

all the call centre representatives are well versed with the local
languages.
2. The benefits of training to an organisation are as follows:

o Training imparts systematic learning to employees thereby helping

to avoid wastage of efforts and money. It is considered better than
the hit and trial methods.
o It increases the employees’ productivity both in terms of quantity
and quality, leading to higher profits.
o Training increases the morale of the employees and reduces
absenteeism and employee turnover.

3. The two values that the firm wants to communicate to the society
are:

o Women empowerment
o Humanity.
Question 6.
Srija runs an NGO under the name ‘Sarthak’ in Delhi. The organisation is
engaged in offering waste paper recycling services to all kinds of
institutions in the Delhi NCR region. It also manufactures custom made
paper stationery out of recycled paper on order for the interested
institutions at a very competitive price. The website of ‘Sarthak’ provides a
link to a Careers site wherein the people desirous of joining the NGO can
use simple Job Search to find the right opportunity for themselves. The
NGO also keeps a database of unsolicited applicants in its office so that job
seekers may be notified of future opportunities when they arise.
In context of the above case:

1. Identify the two sources of external recruitment being used by the

NGO ‘Sarthak’ by quoting lines from the paragraph.
2. List any two values that Srija wants to communicate to the society.

Answer:

1. The two sources of external recruitment being used by the NGO

‘Sarthak’ are as follows:

o Web Publishing:”The website of ‘Sarthak’ provides a link to a Careers

site wherein the people desirous of joining the NGO can use simple
Job Search to find the right opportunity for themselves”
o Casual Callers: “The NGO also keeps a database of unsolicited
applicants in its office so that job seekers may be notified of future
opportunities when they arise.”

2. The two values that Srija wants to communicate to the society are:

o Environment sustainability .
o Responsibility.

Question 7.
Race Tech Ltd. is one of the top IT companies in India. The company does
mass recruitment each year from different colleges offering fresher level
job to the final year students. This helps in recruiting the brightest and the
best available talent in the educational institutions.
In context of the above case:

1. Identify the source of external recruitment adopted by the company.

2. Explain briefly any three advantages of using the external sources of
recruitment.
Answer:

1. Campus Recruitment is the source of external recruitment adopted

by the company.
2. The advantages of using the external sources of recruitment are
stated below:

o Qualified Personnel: Through the external sources of recruitment,the

management is able to attract qualified and trained people to apply
for the vacant job positions in the ^manisation.
o Wider Choice: As the vacancies are advertised widely a large number
of applicants from outside the organisation are likely to apply. This
gives the organisation a wider choice while selecting the people for
employment.
o Fresh Talent: The organisations cannot fulfil all the vacancies from
within the organisation. Therefore by using the sources of external
recruitment they get a wider choice and it brings new blood into the
organisation.

Question 8.
Prateek has started an advertising agency in Gurgaon. One of the page on
his company’s website contains the following information, “Welcome to all
the visitors of this page who are looking for an opportunity to make a
career in the field of advertising. The openings are available in the
company at various levels, so don’t miss the chance.” This page includes a
link to provide further details about the vacancies available in terms of the
desired qualifications, experience, personality characteristics and so on.
Through a continuous assessment of the number and types of human
resources necessary for the performance of various jobs and
accomplishment of organisational objectives and in relation to the number
and type available, he gets the information on this page updated.
In context of the above case:

1. Identify and explain the steps in the staffing process being carried
out by Prateek by quoting lines from the paragraph.
2. Name the concept that relates to the details about the vacancies
available in terms of the desired qualifications, experience,
personality characteristics and so on.

Answer:
 1. The two steps in the staffing process being carried out by Prateek
are as follows:

o Estimating the Manpower Requirements: It is the first step in the

staffing process and is carried out with the help of workload analysis
(assessment of the number and types of human resources necessary
for the performance of various jobs and accomplishment of
organisational objectives) and work force analysis (assessment of the
number and type available).
“Through a continuous assessment of the number and types of
human resources necessary for the performance of various jobs and
accomplishment of organisational objectives and in relation to the
number and type available.”
o Recruitment: Recruitment may be defined as the process of
searching for prospective employees and stimulating them to apply
for jobs in the organisation.
“One of the pages on his company’s website contains the following
information, “Welcome to all the visitors of this page who are
looking for an opportunity to make a career in the field of
advertising. The openings are available in the company at various
levels, so don’t miss the chance.”This page includes a link to provide
further details about the vacancies available.”
“..he gets the information on this page updated.”

2. Job description is the concept that relates to the details about the
vacancies available in terms of the desired qualifications, experience,
personality characteristics and so on.

Question 9.
Sunidhi runs a KPO (Knowledge Process Outsourcing) in Gurgaon. The
services provided by her firm include all kinds of research and information
gathering in fields such as financial market, medicine, animation and
design, etc. Sunidhi believes that the success of the company can be
achieved mainly through the people it chooses to employ. Therefore, she
aims to attract the best people and provides them innumerable
opportunities to enhance their knowledge and skill relevant to their
position.
In context of the above case, identify and explain the aspects of staffing
being taken into consideration by Sunidhi by quoting lines from the
paragraph.
Answer:
The three aspects of staffing being taken into consideration by Sunidhi are
as follows:

1. Recruitment: Recruitment may be defined as the process of

searching for prospective employees and stimulating them to apply
for jobs in the organisation.
“she aims to attract the best people”
2. Selection: Selection is the process of choosing the best candidate
from a pool of applicants.
“Sunidhi believes that the success of the company can be achieved
mainly through the people it chooses to employ.”
3. Training: Training helps to upgrade the knowledge and skills of the
employees so that their ability to perform in the present job can be
enhanced.
“..provides them innumerable opportunities to enhance their
knowledge and skill relevant to their position.”

Question 10.
Anushka is doing a course in fashion designing from an institute of repute.
As a part of the course, she has been asked to take on-the-job training in
an export house for a fortnight in order to gain an insight about various
practical aspects related to designing. Anushka, through the references
from her senior, joins an export house owned by an upcoming designer,
Nandita.
In context of the above case:

1. Name and explain the type of training which Anushka has been
asked to undertake.
2. Explain briefly any one method for providing off-the-job training.

Answer:

1. Internship Training is the type of training which Anushka has been

asked to undertake. It is a joint programme of training in which
educational institutions and business firms co-operate. The learners
carry on with their regular studies for the prescribed period. They
also work in some factory or office to acquire practical knowledge
and skills related to their specific field of expertise.
2. Vestibule training is a popular method for providing off-the-job
training. The term ‘vestibule’ means duplicate or replica. Under this
method, the trainees learn their jobs on the equipment they will be
using at their actual work place. The training is conducted away from
 the actual work floor at a place where actual work environments are
created in a class room and employees use the same materials, files
and equipment. This is usually done when employees are required to
handle sophisticated machinery and equipment. .

Question 11.
The employees of ‘Food Darbar,’ a restaurant, are trained through a
structured programme that provides training in each area within the
restaurant. The trainees learn the skills necessary for running each of the 12
workstations in the restaurant, from taking orders to the cooking area. This
enables the employees to gain a broader understanding of all parts of the
business and how the restaurant functions as a whole. The trainee gets fully
involved in the department’s operations and also gets a chance to test her
own aptitude and ability. When employees are trained by this method, the
organisation finds it easier at the time of promotions, replacements or
transfers.
In context of the above case:

1. Name the type of training which ‘Food Darbar’ provides to its

employees.
2. Distinguish between training and development on the basis of
meaning, purpose and scope.

Answer:

1. Job rotation is the type of training which ‘Food Darbar’ provided to

its employees. It is a method of on-the-job training
2. The difference between Training and Development is given
below:

S.No. Basis Training Development

It is a process of
It is a process of learning
1. Meaning increasing knowledge and
and growth.
skills.
It is to enable the
It is to enable the overall
2. Purpose employee to do the job
growth of the employee.
better.
It is a job oriented It is a career oriented
3. Scope
process. process.

3.

Question 12.
Sunder Lai runs a security service providers agency. Considering that
psychological testing is a critical step for judging the potential of the
prospective candidates for a career in law enforcement, he uses various
types of psychological tests as part of the selection processes. This is done
to ensure that potential new officers are emotionally and psychologically
suited to carry out the requirements of the job.
In context of the above case:

1. Briefly outline any one more type of test that Sunder Lai may use to
assess the potential of the prospective candidates.
2. Briefly outline the steps involved in the selection process after
conducting the assessment tests.

Answer:

1. Interest Tests: Interest tests are used to know the pattern of interests
or involvement of a person.
2. The further important steps in the process of selection, after
conducting assessment tests are as follows:

o Employment Interview: It is a face-to-face interaction between the

interviewers and prospective candidate. It involves a formal, in-depth
conversation that is conducted to evaluate the applicant’s suitability
for the job.
o Reference and Background Checks: At the time of filling up of the
job application form, the prospective candidates are required to
provide names, addresses, and telephone numbers of references for
the purpose of verifying information and gaining additional
information about him/her.
o Selection Decision: The final decision about the selection is made
from among the candidates who pass the tests and interview.
o Medical Examination: After the selection decision and before the job
offer is made, the candidate is required to undergo a medical fitness
test.
o Job Offer: The next step in the selection process is job offer, given to
those applicants who have passed all the previous tests.
o Contract of Employment: After candidate accepts the job offer, a
contract of employment is issued. Basic information that should be
included in a written contract of employment will vary according to
the level of the job, but it will include information like job title,
duties, responsibilities, date of joining, pay and allowances, etc.