.

Question 3:

Why might an investor choose to keep a portion of their portfolio in cash during volatile market conditions?

a) To capitalize on high dividend payouts

b) To reduce exposure to market volatility
c) To ensure long-term capital gains
d) To avoid paying taxes

Question 4:

What is a potential downside of maintaining high cash holdings in a portfolio?

a) Increased risk of financial loss

b) Higher exposure to market fluctuations
c) Opportunity cost of missed investment returns
d) Difficulty in accessing funds quickly

Question 5:

Balanced cash holdings can act as a financial safety net. This means:

a) You can invest without any risk of loss

b) You have funds available for unexpected expenses
c) You guarantee high returns on all investments
d) You minimize taxes on investment income

organization’s surplus labour force.

Methods of Decruitment
▪ Attrition – not filling openings created
▪ Early retirement – retiring older employees before their
normal retirement date providing incentives.
▪ Firing – permanent involuntary termination of employment.
▪ Lay off – temporary involuntary termination of
employment (may last few months or years).
▪ Reduced workweeks – having employees work fewer hours
per week or perform their jobs on part time basis.

1.1. Selection

Specific objective:

➢ After completing this lesson you are expected to be able to

describe and understand the selection process.
 What is selection?

It is the process of deciding which candidates out of the pool of applicants have the
abilities, skills, and characteristics that adequately match the job demands.
➢ The role of
recruitment is to locate job candidates.
➢ The role of
selection is to evaluate each candidate and pick the best one for
the position available.

Selection process comes after recruitment, selection can be explained in terms of either
choosing the fit candidates, or rejecting the unfit candidates, or a combination of
both, selection involves both because it picks up the fits and rejects the unfits.

The selection process

➢ Selection is considered as a negative process because more
will be turned away than hired. The process usually follows
the following stages:

Conducting a screening interviews

Completing a Blank application form
Administration of psychological tests.
Conducting Evaluation interviews
Arrangement for physical examination
Placement
➢ The candidate may submit a fitness–certificate after the
medical examination is over. Putting the right person at right
position by employment letter specifying the place of work,
gross payment, hours of work, etc. is given to the candidate.
 1.2. Induction and Orientation

Definition: It is the introduction of a new employee to his/her job

and the organization.

Purpose: Induction is the process of introducing new employees to the company, its culture, policies,
and procedures. Orientation is the process of providing new employees with information about the
company, its products, services, and the job they will be performing.

Objectives of Orientation/ Induction:

- To reduce the initial anxiety

- To familiarize new employees with the job, the work unit

and the organization as a whole
- To facilitate the outsider-insider transitions
- To familiarize the employee with the goals and his/her new
co- workers
- To introduce the employee with the relevant policies,
rules and regulations.
 1.3. Training and Development
Very often the terms "training" and “development" are considered as synonymous. Really
speaking, there is a difference between the two.
Definition:
- Training: It is the process of increasing the knowledge and skills
of an employee for doing a particular job.