CASE STUDIES - CH - 6 - STAFFING

1. Sahil, the director of a garments company, is planning to manufacture bags for the utilisation of waste materials
of one of his garments unit. He decided that this manufacturing unit will be set up in a rural area of Orissa where
people have very less job opportunities and labour is available at very low rate. He also thought of giving equal
opportunities to men and women.
(i) Identify and state the next two steps that Sahil has to follow in the staffing process after selecting the
above heads.
(ii) Also identify two values which Sahil wants to communicate to the society by setting up this
manufacturing unit. [CBSE 2013]

Ans. (1) next two Steps of Staffing Process:

(a) Placement and Orientation: Placement means to join the post for which he/she has been selected. Under
orientation the employee is given a brief presentation about the company and is introduced to his superiors,
subordinates and colleagues.
(b) Training and Development: At this step of process of staffing,training and development are imparted to the
employees so that their efficiency and effectiveness is increased.
(ii) Values: (a) Development of backward areas. (b) Equality.

2. A personnel manager while selecting new employees appoints only those persons who fulfils his personal
requirements directly or indirectly. Which values are violated here?
Ans.
 Promotion to nepotism
 Instigation to corruption
 Selection of inefficient employees
 dis-satisfaction in efficient members

3. an employee has been terminated due to a small mistake without hearing him, while the other one was not
terminated on the same mistake.
Which value has been neglected here?
Ans.
1. Biasness
2. Biased behaviour
3. Misuse of rights
4. Insecurity and groupism in employees

4. an automobile company runs a factory in a backward area. It has opened a training centre to train the people.
Which value has been kept in mind here?
Ans.
1. Development of backward areas
2. Helpful in availing trained employees
3. Increase in productivity and boasting the morale of employees
4. Increase in employment opportunity

5. Mr.Bheem Rajanwala is working as a personnel manager in a company of delhi. Although he is not well educated
he is an experienced person. Before this he has worked on this posts in two large companies. His intention is
always in promoting an efficient employee to a higher post and in demoting inefficient one to a lower vacant
post.
(i) State on what source of recruitment is Mr Rajanwala concentrating?
(ii) What are the benefits of which company is depriving by using this source?

Ans. (i) Mr Rajanwala is concentrating on internal source of recruitment.

(ii) By using this method the company is depriving of the following benefits:
Merits: External recruitment source has the following merits:
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 (i) Qualified Personnel: The external source of recruitment gives an opportunity to the qualified people from
outside the organisation to enter it. This benefits both the organisation and the applicants from outside.
(ii) Wider Choice: By using the external source of recruitment, the number of applicants increase manifold
which in turn increase the area of choice. The managers can appoint the most talented persons after
examining the capabilities and talents of all the applicants.
(iii) Fresh Talent: The external source of recruitment helps the people with new and modern ideas to enter an
organisation which certainly helps the organisation.

6. Your school has vacancies of teachers. The eligible staff had already been promoted to some posts. Still some
vacancies are left. Explain any four sources of recruitment you will use for filling-up these vacancies.

Ans. Vacancies can be filled by the following sources:

(i) Campus Recruitment: It refers to recruitment from educational institutions. Some big organisations remain in
touch with the educational institutions with the purpose of recruiting young talented people. These persons come
from colleges, universities, management institutes, technical institutes, etc. These institutions have a placement cell
each with the purpose of helping their young students to find suitable jobs. The human resource managers of
various companies get in touch with these placement cells and obtain the suitable persons for appointment.
(ii) Recommendations: With a view to establishing good employer-employee relations, sometimes managers recruit
people on the recommendation of their existing employees. In this way, present employees feel encouraged and
there is a complete control over new employees. This source is mostly used for appointing lower level employees.
(iii) Telecasting: These days some big organisations give precedence to telecasting their job requirements. During
the course of telecasting information about vacant posts, required qualifications and experience, possible
remuneration and the special characteristics of the company are displayed.
(iv) Web Publishing: These days internet has become an important medium for recruitment. Special websites have
been created for the purpose of recruitment through internet. The applicants get information through them about
the vacant posts and required qualifications. People having the required qualifications can get in touch with the
company needing their services. Some of the very popular websites are www. naukri.com, www.Jobstreet.com, and
www.clickjobs.com, etc.

7. Nishant, the director of a garments company, is planning to manufacture bags for the utilization of waste material
from one of his garment units. He has decided that this manufacturing unit will be set-up in a rural area of Orissa
where people have very few job-opportunities and labour is available at low rates. He has also thought of giving
equal opportunities to men and women.
For this he wants four different heads for Sales, Accounts, Purchase and Production. He gives an advertisement
and shortlists ten candidates per post after conducting different selection-tests.

(i) Identify and state the next three steps for choosing the best candidate out of the candidates short-listed.
(ii) Also identify two values which Nishant wants to communicate to the society by setting up this
manufacturing unit.

Ans. (a) Next Three Steps of Selection:

(i) Employment Interview: Having successfully cleared all tests related to employment, the candidate is called for
final interview. Its objectives are to see the looks of the candidate, his way of talking, his conduct and temperament,
his interest, presence of mind, and maturity, etc.
(ii) Reference and Background Checks: After interview then some information about him is gathered from those
persons whose name figure in the column of 'References'. These information relates to the character, social
relations, background, etc. of the candidate. To obtain these information the employer may also contact friends of
the candidate, his past and present employers.
(iii) Selection Decision: Applicants who clear and Reference checks are selected. Prior to take final selection
decision, the opinion of concerned manager is sought (concerned department where the selected employee has to
work)
(B) Values:
o Development of backward areas.
o Equality.

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8. A newly appointed personnel manager is of the view that there is no need for training the workers. Do you agree
with this view? Give reasons in support of your answer.

Ans. No, I do not agree with the view of personnel manager. Give the reasons of the need of training.

9. Mr RaghavNathani, Chief Executive Officer of `GEMCO Ltd.' has got placed a notice reading: "Smoking is
Prohibited" against the main wall of each hall of his factory. Every employee obeys this instruction. Human
Resource Manager of the company has to appoint a few sales officers. During the course of interview an applicant
was asked this question: "Notice against the wall is a part of the basic function of the management. Identify it".
Answer was "It is a policy." Selection process has reached the stage of medical examination.

(i) Is the answer of the applicant correct?

(ii) What is the next step of selection process after "medical examination".

Ans. (i) this answer is wrong. The correct answer is 'Rule'.

(ii) Job offer.

10. A "management expert" was invited by a company. He gave a lecture in the meeting of employees. Main points
of the lecture were, "Employees should make all out efforts to increase their market value. To achieve this
objective they should increase their capacity and efficiency. They should also make such endeavour as to get job
satisfaction. Not only that, it is equally essential that they should concentrate on minimizing the accidents".
Management expert is hinting at a function of the management which is beneficial both for the enterprise and the
employees. Identify it. Ans. Training

11. Board of Directors of Fairdeal Limited' has formulated a policy for Human Resource Development. According to
this policy, certain standards will have to be taken in consideration prior to the appointment of persons n the
company. Some of the main standards are: existing employees of the company -should be motivated, selection
should be riskless and should not need any induction.
Identify the source of employment adopted by Fairdeal Ltd. Ans. Internal Source

12. "Pushpanjali Pvt. Ltd." is a renowned company manufacturing different kinds of gifts. Mr Subhash Kathuria H.R.
Manager is keen to select such persons as are well equipped with the latest knowledge. He also desires that the
area of selection should be extensive. In your opinion which source of recruitment should be used by H.R.
Manager? Ans. External Source

13. It is the custom of a company to avoid to say 'No' to any person who approaches it for a job. Rather it gets his
application and tells him that as and when company required his services, he will be called. In this way, company
acquires a database. Its advantage is that at the time of need a suitable applicant out of the database can be
called for interview. Thus the company is saved from expenses on advertisement. Identify the source of
recruitment referred to in the above paragraph. Ans. Casual Callers.

14. Business of "Prince Global Reach Ltd." is spread across many countries. Company received the following
information about human resource from two of these countries. In the first country, business of the company is
far less than expected. That is why the number of employees there is much more than is necessary. But the
company has also learnt that the state of slowdown in business will stay for a short period only. In the second
country, in some departments of the company number of employees is more than required whereas in some
other departments the same posts are lying vacant. Advise the H.R. Manager of the company as to what method
of recruitment he should follow in both the countries and why?

Ans. It will be appropriate for H.R. Manager to take the following decisions in the said countries: Decision for the
first country: Here lay-off method of recruitment will be appropriate. Lay-off means temporary separation of the
employee from the employer. Mostly it is due to lack of work. However, there is clear understanding between the
employer and the employee that he will be re-employed as and when there is enough of work. Thus, by recalling the

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 laid-off employee, vacant post can be filled up. Decision for the second country: Transfer method of recruitment will
be suitable for this country. It means transfer of an employee from one department or one branch, to the other
department or branch on the same post. This method is usually followed when some employees are surplus in one
department and insufficient in another department.

15. Mr Ajay Garg is an H.R. Manager of "Bharat Shoes Udyog". He undertook a study with the sole purpose of
minimising the cost of production and raising the quality of the products of his company. The findings of the study
were put into practice immediately. The company succeeded in its purpose. It witnessed rapid rise in demand of
its products. It had its effect on the number of employees. The company felt the need of 30 more employees. In
order to meet this need Mr Garg initiated staffing process. So far he has completed the first two steps of this
process and is now at the final point of the third step.

(a) Identify the study undertaken to improve production.

(b) Identify and describe the final point of the third step of staffing process.

Ans. (a) Method Study

(b) Name of the third step of staffing is "Selection".
Final point of selection is "Contract of Employment." Contract of Employment: After the acceptance of job offer
by a selected candidate, he becomes an employee of the organisation. In this step, the appointee signs various
documents. Main document among them is the attestation form. In this document detailed description of the
employee is provided which he himself attests. It can be used at the time of need in future.

16. Employees of a company working at all posts have been told about the relations among them in very clear terms.
All of them know from whom to receive orders and to whom they are to report. HR Manager of the company
interviewed MBA students of a management institute. He selected five of them. They were asked to join the
company immediately. They did so. On joining the company, they were introduced to their superiors and
subordinates. Objectives and policies of the company were also brought to their notice in a clear and distinct
manner. In the above paragraph mention has been made of the two concepts of management identify the same
by quoting the lines.

Ans. (i) Employees of a company…….clear terms.

Formal Organisation: It refers to the structure of the organisation as management in order to accomplish a
particular task.
(ii) On joining the company…………clear and distinct manner
Induction training – it means to acquaint the newly appointed employees with their job and the organisations.

17. Mr Krishna Gopal personnel manager of shahil Kid swear ltd. Is busy in making some appointments of different
departments of his company. By now, he has completed the first two steps of staffing process. The third step is
underway. Name of this step is selection. It has its own lengthy process. He is currently engaged in employment
interview. He has already interviewed the applicants and is now directing them to the concerned departmental
managers for another interview. The objective behind directing them to the departmental managers is that they
too satisfy themselves by conversing face to face with the applicants.

(a) Identify the first two steps of staffing process that have since been completed.
(b) Third step of "Selection" is under completion. Name the existing and next two steps.

Ans. (a) (i) Estimating the manpower requirement; (ii) Recruitment

(b) Existing Step. Employment Interview. Next Two Steps: (i)Reference and Background check; (ii) Selection decision.

18. Managing Director of "Rathi India Limited" convened a meeting of the employees working at all managerial levels.
Two main issues were discussed in the meeting. First, how the employees should perform all those activities more
efficiently which are being carried out currently. Second, how to enable the employees to take upon itself big
responsibilities in future. Through the medium of the meeting, the company was seeking the possibilities of its
extension. When the managing director felt satisfied that the employees were taking interest in both the issues,

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 then he convened a meeting of board of directors to give final shape to the decision regarding extension of the
company.

(i) Identify different managerial levels.

(ii) Identify and explain those concepts of managements which relate to both the issues discussed in the
meeting.
Ans.
(i) Managerial Levels
• Top level management
• Middle level management
• Low level management
(ii) Concept relating to the first issue:
Training: It refers to a process designed to maintain and improve current job performance.
• Concept relating to the second issue:
Development: It refers to a process designed to develop skills necessary for future activities.

19. Business of "Shardha Auto Pvt. Ltd." is confined only to one state. Now it intends the same to too other states.
Mr.Jatin Jain the managing director of the company, is busy in making a plan to this effect. First of all, he
contacted Mrs Rukmani Devi Rana, the H.R. manager of the company. Both were of the opinion that they would
require 75 more employees to extend the business to too new states. On looking at the record of the existing
employees, that 8 employees were going to retire very shortly. Besides, two employees were proceeding on long
term study level abroad for two years. Thus company would now require 85 employees in all. Mr Rana
recommended to Mr Jatin that out of the total vacant post, 15 be reserved for women. Mr Jain gladly accepted
the proposal. Now, HR manager was to decide as to that arrangement be made for the employment of needed
persons. She hit upon a plan. According to this plan some employees would be recruited with the help of existing
employees, for some other internet would be approached and for the remaining potential employees placement
agencies operating in the market would be contacted.

(a) Describe what function of management has been referred to in the above paragraph?
(b) What sources of recruitment are being used by H.R. Manager? Explain briefly.
(c) Identify the value hinted at.

Ans. (al Staffing

(b) Sources of recruitment used by the HR manager
(i) Recommendation: With a view to establishing good employer-employee relations sometimes manager
recruit people-on the recommendation of their existing employees. In this way, the present employees
feel encouraged and there is a complete control over new employees. This source is mostly used for
appointing lower-level employees.
(ii) Internet/Websites: Currently internet is an important medium for recruitment. Information regarding
vacant posts and essential qualifications required can be obtained by the applicant through them.
Applicants having the requisite qualifications can contact those companies which need their services.
Some of the very popular websites are: www.naukri.com, www.obstreet.com and www.clickjobs.com
etc.
(iii) Private Placement Agencies: These agencies are set up by private individuals. Persons in search of job
can get their names registered with them. Such registrations are meant usually for high or medium level
jobs. On the request of an organisation, these agencies do the whole work of recruitment on their
behalf. They get their fee for the service rendered to the organisation.
(c) Women Empowerment.

20. Mr Ram Murti director of Bahuguna Ispat Udyog ltd. Is of the opinion that an employee is a prudent and sensitive
resource of the organisation. As such special attention must be paid to his emotions this is the reason why he
always formulate such plans beneficial to both employees and the organisation. With a view to giving a practical
shape to his opinion, he has chalked out a plan. According to his plan employees should be inspired to visit
popular management institutes required latest knowledge. This will enhance their performance level and prove

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 beneficial to the organisation as well as the employees. Keeping it on view, Mr Bahuguna contacted IIM
Ahmedabad, the later agreed on the undertaking that their (IIM) MBA students be allowed to visit the company
so that they may get practical knowledge. Both reached an agreement.

(i) What objective of the management has been referred to at the beginning of the above paragraph?
Identify it?
(ii) Plan of Mr Bahuguna relates to which component of management? Identify and describe the same.
(iii) What value is being effected here?

Ans. (i) It refers to 'Individual Objectives' of the management. It refers to the objectives to be determined with
respect to the employees of the organisation.
(ii) Mr Bahuguna’s plan relates to the training of the employees. He is making use of 'internship training method'. It
is that training which is imparted jointly both by the educational and business organisations to strike balance
between the theoretical and practical knowledge of their members.
(iii) Realising the significance of human sentiments here humanity has been dealt with.

21. Johnson brother ltd. Manufactures bearing used in different machines. Mr Roshan Sodhi, Director of the company
has decided to install an imported plant making best quality bearing at low cost. The plant was installed. When
production started with the help of new plant he realised that he did not succeed in his objective. On scrutiny, it
transpired that the employees had not understood properly the mechanism of new plant. Mr Sodhi decided to
remove this shortcoming of the employees. Consequently, soon this weakness of the employees was removed.
But Mr Sodhi was not yet satisfied with the performance of the employees. He once again resorted to scrutinise
the matter. This time, he found that operating the machines, the tools required by the employees were not found
at their proper place. Due to this reason there had also occurred unnecessary wear and tear of machines. He also
noticed many employees wandering hither and thither aimlessly instead of working at their proper place. In the
meanwhile, he also received a complaint that an employee had been thrown out of service because of little
deficiency in his performance and was not given whereas many other employees with similar nature of
performance were still any hearing to defend working in the company.

(a) Identify and make us understand the measure adopted by Mr Sodhi to improve the skill of the
employees.
(b) Which principle of management is being violated by the company? Give the meaning of this principle.
(c) What values are being ignored by the company?

Ans. (a) Mr Sodhi improved the skill of the employees by imparting training to them. "Training refers to a process
designed to maintain and improve current job performance."
(b) In this case, 'Principle of order' has been violated.
According to the 'Principle of order', Proper person should be placed at proper work and proper thing should be kept
at proper place. In every enterprise there should be two separate orders e.g., material order in case of Physical
Resources and social order in case of Human Resources. Keeping physical resources in order means: "A proper place
for everything and every things in its right place." Similarly, keeping human resources in order means: "A place for
everyone and everyone in his appointed place".
(c) Value that has been ignored.
• Impartiality
• Proper use of resources

22. Mr Anil Garg is working as Managing Director of "CLS Packaging Limited". He is not in favour of selling waste
material in the market. Instead he is planning to make himself new products of this material. For this purpose, a
new unit will have to be set up. Accordingly, he decided to establish this unit in an area where large number of
persons are unemployed and so labour is available at cheap rate. In order to attract workers to this new unit, a
special Remuneration Scheme was introduced. As per this scheme, workers will get their remuneration on the
basis of their work. There will be two rates of wages: higher wage rate and lower wage rate. A worker who will
work upto a given standardised units or beyond will be paid his/her remuneration at a higher rate. On the other
hand, a worker who will work less than the given standardised units will be paid his/her remuneration at a lower

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 rate. In order to operate this new unit, Mr Garg established a separate 'Waste Material Division'. It consisted of
four departments, such as, Purchase, Sales, Production and Accounts. Company required four managers to run
these departments, of these, two managers were appointed from the existing business, by way of promotion;
while the other two were selected out of the waiting list maintained by the company.

(i) Which form of organisation structure is being adopted by the company?

(ii) Identify and give the meaning of wage payment scheme adopted by the company to motivate the
workers.
(iii) What methods of recruitment have been adopted by the company?
(iv) Identify these two values that Mr Garg has been dedicating to the society by establishing this new unit.

Ans. (i) Divisional Organisation Structure

(ii) Differential Wage System: It refers to that technique of scientific management which differentiate between
efficient and inefficient workers.
(iii) Promotion • Casual callers
(iv) Development of backward area • Rise in employment opportunities

23. "Shiv Shakti Ltd." keeps constant vigil over business environment and studies it. During the course of this study,
he noticed a considerable fall in bank interest rate. On the basis of this information, CEO of the company, Mr
Rajan Aggarwal anticipated rapid rise in demand for his products. Consequently, company decided to produce
more than the normal production. Company also decided to take special care of the health and safety of the
people and to keep the profits at low level while fixing the price of the products. To achieve its objective of
increase in production, company will need 50 additional workers. Similarly, company will also require some more
managerial staff regarding appointment of the employees, it is the desire of the company to recruit such like
youngmen as are fully familiar with the new and modern ideas. No matter they may have less experience. Mr
Ram Oberoi, H.R. Manager of the company, arranged the requisite staff. It was brought to the notice of Mr Oberoi
that some of the machine operators needed training. He set up a training centre for this purpose. In this training
centre, a trainer imparted them one-month training. Thus by adopting these measures, company achieved its
objective of large-scale production.

(a) Quoting the lines identify the component of business environment.

(b) Quoting the lines identify the 'objective of management'.
(c) Company will get different kinds of persons from which sources of recruitment?
(d) Which training method is being used by company?

Ans. (a) "During the course of study ……………..fall in bank interest rate." Economic environment.
(b) "Company also decided……………………..to keep the profit at low level while fixing the price." Social objective
(c)
(i) Daily Wage basis: Direct Recruitment
(ii) Managerial Staff: Management Consultant
(iii) Youngmen with new and modern ideas: Campus Recruitment.
(d) Vestibule Training

24. "Mahindra Rice Land Limited" is known as the king of rice trade. The company has large market share. Company's
internal environment is exceedingly pleasant. Chief Executive Officer of the company has delegated most of
the decision-making authorities to departmental managers. For instance, all departmental managers have the
authority to appoint any employee getting a salary up to 50,000 per month. They need not obtain prior
permission from the CEO for this purpose. It is the practice of the company to entrust to one person the
responsibility of performing identical activities. It increases the efficiency of the organisation. Since everything is
positive in the company, all persons are keen to seek employment there. Some of the employees are conversing
with one another as to how they got appointment in the company. Deepak Miglani told that he applied for the
job after reading an advertisement in the newspaper. He was called for interview. He was selected on this basis.
Deepak Sharma told that he was introduced by the existing finance manager. Deepak Pathak told that he had
neither seen any advertisement in the newspaper nor was he introduced to the company by any person, rather he

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 was directly appointed on the basis of interview conducted in the University where he was about to finish his
M.A. Economics (Hons.) course.

Answer the following questions on the basis of the above paragraphs.

(a) Which factor of the organising function of the management has been referred to here?
(b) Which principle of management has been high-lighted here? Clarify the same.
(c) Which factor of the staffing function of the management has been referred to here?
(d) Describe the above mentioned three methods concerning the sources of recruitment as identified vide point
(c).

Ans. (a) Decentralisation

(b) Principle of Unity of Direction. According to this principle all activities having similar objective should be
completed under the supervision of one person and there should be one plan of action for such type of activities.
(c) Recruitment
(d)
• Deepak Miglani: Advertising Media
• Deepak Sharma: Recommendation
• Deepak Pathak : Campus Recruitment

25. Mr VikasGoel is an H.R. manager of "Sanduja Furniture Pvt. Ltd. At the beginning of New Year he anticipated that
the company will need new 30 additional persons to fill up different vacancies. He gave an advertisement in the
newspaper inviting applications for filling up the different posts. As many as 120 applications were received. Out
of these, conditions of 15 applicants were not acceptable to the company. Letters of regret, giving reasons, were
sent, to them. Remaining candidates were called for preliminary interview. The candidates called for were asked
to fill up blank application form. Therefore, they were given four tests.
The objective of the first test was to find out how much interest the applicant does take in his work. The objective
of the second test was to find out 'specialisation' of the applicant in any particular area. Third test aimed at
making sure whether the applicant was capable of learning through training or not. The purpose of fourth test
was to find out how much capability a person has to mix-up with other person, and whether he can influence
other persons and get influenced by them. Answer the following questions on the basis of the above information:

(a) Quoting the lines, identify the first two steps of staffing.
(b) Identify different tests given to the applicants by Mr Goel.

Ans. (a) (i) 'At the beginning of the new year………….different vacancies."
• Estimating Manpower Requirement.
(ii) He gave an advertisement……………………..applications were received."
• Recruitment
(b) Mr Goel gave tests in the following order:
(i) Interest Test ; (ii) Aptitude Test; (iii) Special Trade Efficiency Test ; (iv) Personality Test .

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