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Deciphering the Economics

Case Study Questions: Staffing

Most Important Questions Staffing

Q1. Payal belongs to a small village in Uttaranchal and is the only literate person in her family. After completing her graduation in commerce, she decided to follow her passion and opened up a boutique in Lajpat Nagar. Soon, her business started flourishing. She got requests from her cousins in the village to engage them in her business. She called her two cousins from the village to help her in business. She delegated the work to them. It was observed that wastage of material and an increase in overheads occurred as the employees were not competent enough to perform the jobs assigned to them. It further led to lower productivity and poor quality of goods.

(a) Identify the function of management which Payal ignored.

(b) State any two points of importance.

Ans. (a) Staffing

Q2. The workers of ‘Vyam Ltd.’ cannot 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 supervisor. 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.


The workers of ‘Gargya Ltd.’ cannot work on new computerized machines imported by the company to fulfill the increased demand. Therefore, the workers seek extra guidance from the supervisor and 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.


A company manufactures very sophisticated switch gears used in automatic cars. For this, the company uses hi-tech machines. Most of the time the factory workers remain idle because of a lack of knowledge regarding these hi-tech machines. The frequent visits by the engineers and constant supervision of the foreman result in high overhead charges. Explain the way by which this problem can be overcome. Also, state how this helps the employees.

Ans. Training of employees/ Vestibule training/off-the-job training

Benefits the workers will derive from the decision of the supervisor:

(a) It helps in promotion and career growth due to improved skills and knowledge.

(b) It helps them to earn more due to improved performance.

(c) It reduces accidents as the employees are more efficient in handling machines.

(d) It increases the morale of the employees as the employees are more satisfied.

Q3. “Our assets walk out of the door each evening; we have to make sure that they come back the next morning.” This statement relates to which function of management.

Ans. Staffing

Q4. Mr. Neelam recently completed her post-graduate Diploma in Human Resource Management. A few months from now a large steel manufacturing company appointed her as its Human Resource Manager. As of now, the company employs 800 persons and has an expansion plan in hand which may require another 200 persons for various types of additional requirements. Ms. Neelam has been given complete charge of the company’s Human Resources Department. What functions is she supposed to perform?

Ans. Ms. Neelam is supposed to perform the following functions as the HR Manager:

(a) Recruitment, i.e., search for qualified people.

(b) Analyzing jobs and collecting information about jobs to prepare job descriptions.

(c) Developing compensation and incentive plans.

(d) Training and development of employees for efficient performance and career growth.

(e) Maintaining labor relations and union-management relations.

(f) Handling grievances and complaints.

(g) Providing for social security and welfare of employees.

(h) Defending the company in lawsuits and avoiding legal complications.

Q5. Your school has some vacancies for teachers. The eligible staff has been promoted to half of the posts. Suggest any four ways through which the right type of people may be invited to fill up the rest of the vacancies.

Ans. The following external sources of recruitment will suit the purpose:

(a) Advertisements                            (b) Campus recruitment

(c) Employment exchange                 (d) Recommendations from present employees.

Q6.  An organization provides security services. It requires candidates who are reliable and don’t leak out the secrets of their clients. What step should be incorporated into the selection process?

Ans. In the given case, during the selection process, the organization must conduct the ‘Personality test’ as this test provides complete information about the candidate’s overall personality of the applicant in terms of his emotions, maturity, honesty, self-confidence, value- system, etc.

Q7. Manu, a chief Manager in a company using highly sophisticated machines and equipment, wants every employee should be fully trained before using the machines and equipment.

Suggest and describe the best method of training that Manu can use for training employees.

Ans. Manu can use the ‘Vestibule training’ method for training employees.

Q8. Identify the term highlighted in the following statements:

(a) it aims to determine the number and types of employees required.

(b) it is a face–to–face conversation between the employer and the applicant.

(c) It helps in the overall growth of employees.

(d) It aims to create a pool of prospective job candidates.

(e) it refers to shifting an employee from a lower job position to a higher job position.

(f) In this source of recruitment, candidates from outside the organization are invited to fill the vacancies.

Ans. (a) Manpower Planning           (b) Interview              (c) Development

(d) Recruitment                                (e) Promotion             (f) External sources of recruitment

Q9. A company X Ltd. Is setting up a new plant in India for manufacturing auto components. India is a highly competitive and cost-effective production base in this sector. X Ltd. Is planning to capture about 40% of the market share in India and also export to the tune of at least $ 5 million in about 2 years of its planned operations. To achieve these targets it requires a highly trained and motivated workforce. You have been retained by the company to advise it in this matter.

(a) Which source of recruitment the company should rely upon? Give reasons for your recommendation. Also, mention any two types.

(b) which methods of training and development should the company initiate?

Ans. (a) The company should rely upon the following external sources of recruitment because it is setting up a new plant and requiring a large number of employees with the latest technology. So, it needs to recruit technical, professional, and managerial personnel.

(i) Advertisement

(ii) Placement agencies and management consultants

(iii) Campus recruitment.

(b) The company should initiate the following methods of training and development:

(i) Apprenticeship training

(ii) Vestibule training

Q10. A company manufactures paper plates and bowls. It produces 1,00,000 plates and bowls each day. Due to local festivals, it got an urgent order for an extra 25,000 plates and bowls. Advise how the company will fulfill its order and which method of recruitment would you suggest.

Ans. In the given situation, the company needs to recruit workers to meet the temporary increase in demand. The most suitable method will be ‘Labour Contractors’ as the nature of work seems to be unskilled. Such contractors maintain close contact with laborers and they can provide the quantity of workers at short notice.

Q11 The workers of a factory remain idle because of a lack of knowledge of hi-tech machines. Frequent visit of engineers is made which causes high overhead charges. How this problem be removed?

Ans. In this case, the workers need training to work on hi-tech and sophisticated machines. The suitable method of training, in this case, is ‘Vestibule Training’.

Q12. The quality of production is not as per standards. On investigation, it was observed that most of the workers were not fully aware of the proper operation of the machinery. What could be the way to improve the accuracy?

Ans. In the given case, workers need to be given training to make them learn the use of machinery, and the most suitable method in this case is ‘Apprenticeship Training.’

Q13. “Some Learning opportunities are designed and delivered to improve skills and abilities of employees whereas some others are designed to help in the growth of individuals in all respects.” Identify the two concepts explained above and distinguish between them on any four bases.

Ans. Training – ‘Some learning opportunities are designed and delivered to improve skills and abilities of employees.’

Development – ‘Some others are designed to help in the growth of individuals in all respects.’

For the difference between training and development.

Q14. Name any two methods of recruitment suitable for recruiting technical, professional, and managerial personnel. Why does an organization have to top external sources of recruitment for various positions?

Ans. (a) Management consultants                            (b) Campus recruitment

An organization has to tap external sources of recruitment for various positions because all the vacancies cannot be filled through internal recruitment. The existing staff may be insufficient or they may not fulfill the eligibility criteria of the jobs to be filled. Moreover, external recruitment provides a wider choice and brings new blood to the organization.

Q15. Zenith Ltd. Is a highly reputed company and many people wanted to join this company. The employees of this organization are very happy and they discussed how they came in contact with this organization.

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 H.R. manager.

Vaibhav said that he was neither related to any of the employees of the organization nor there was any advertisement in the newspaper even then he was directly called from IIM Ahmedabad from where he was about to complete his MBA.

(a) The above discussion indicates an important function of management. Name the function of management.

(b) The management function identified in part (a) follows a particular process. Explain the step of this process which is being discussed in the above para.

Ans. (a) Staffing

(b) Recruitment – it is defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organization.

Q16. The employees in the sales department of Dynamic Ltd. Are always working against time. They are not able to meet all the customers due to a shortage of time. Most managers in the department have to handle two or more territories. Due to work pressure, there is a lot of dissatisfaction among managers.

(a) Identify which step of the staffing process was not properly carried out.

(b) What steps HR manager take to ensure the proper functioning of the sales department?

Ans. (a) ‘Estimating manpower requirements’ was not done properly. The department is understaffed as a result there is work pressure and job dissatisfaction.

(b) The human Resources Manager must conduct workload analysis and workforce analysis of the department and appoint qualified and skilled people to take responsibilities of sales manager and share work with existing managers.

Q17. Sahil, the director of a garment company, is planning to manufacture bags for the utilization of waste material in one of his garment units. He decided that this manufacturing unit would be set up in a rural area of Odisha where people have very less job opportunities and labor 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 sales, Accounts, Purchase, and production departments.

(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 that Sahil wants to communicate to society by setting up this manufacturing unit.

Ans. (i) The next two steps that Sahil has to follow in the staffing process are:

(a) Placement and Orientation or induction.

(b) Training and Development.

(ii) Values which Sahil wants to communicate to the society are:

(a) Economic Development and upliftment of backward areas:

(b) Providing job opportunities in rural areas.

(c) Gender equality (no discrimination between males and females).

(d) Optimum utilization of resources.

Q18.Lakshay is working as a supervisor in a company. Due to his hard work, he is promoted to the post of production Manager Now the post of supervisor is vacant and no one can be transferred or promoted to this post. Name the source of recruitment the company will use to fill up this post. State any three advantages of using this source of recruitment.

Ans. Internal source of recruitment.

Q19. Ashutosh is working with ABC Housekeeping Services Ltd. He is also recruiting housekeeping staff for the company. The company provides housekeeping services in Delhi/ NCR to various companies at short notice. The staff is recruited temporarily. The staff provided by the company is known for its trustworthiness and regularity. Ashutosh is famous in his town for employing untrained people. 

(a) Identify the source of recruitment used by ABC Housekeeping Services Ltd.

(b) State any one advantage and disadvantage of this source of recruitment.

(c) Identify any two values communicated to the society in the above case.

Ans. (a) External source of recruitment- labor contractor.

(b) Advantage:

  • Wider choice


  • Lengthy process

(c) values

(i) Providing job opportunities

(ii) uplifted the weaker sections of the society.

Q20. ‘Move with Pace Ltd.’ Is a progressive company with very good human resources records. Recently it created a pool of prospective candidates for jobs to be given in various departments. The company is always willing to complete its human resources duties properly. Various job positions exist in the company. The company makes it mandatory for the human resources department to prepare job descriptions so that necessary information about the jobs can be created. For its decent human resources practices the company has won several awards. It knows that the most important asset of an organization is its image and to protect it company is always ready to make extra efforts. Last year when a few groups filed a complaint against the company it made great efforts to fight legally and came out victorious. There is a very good setup to promote the interests of the employees. To give them a familiar environment the company promotes various informal organizations and proper celebration of all festivals. It is very responsive towards its workers and always attends to their problems. There is a special cell in the human resources departments which is very responsive to all the complaints made by all the employees regardless of the level at which they work. Recently the national newspaper made a very favorite mention of the lack of strikes in the company as the management labor relations are very good and a lot of importance is given to the demands of the labor unions. A very peaceful environment exists in the organization. Identify the various duties of the human resources department highlighted in the above case by quoting the lines.

Ans. (a) Recruitment

‘Recently ….. various departments.’

(b) Analyzing jobs and collecting information about jobs to prepare job descriptions.

‘The company ….. could be created.’

(c) Dealing with legal procedure

‘Last year … came out victorious.’

(d) Ensuring social security for employees and handling their grievances.

‘In order …. Celebrations of all festivals.’

(e) Maintaining labor relations and union-management relations.

‘Recently a national newspaper…. Labor unions.

Q21. Mr. Gaurav is the owner of ‘Wave Ltd’. Requires new employees. For this, his company has started making efforts. The financial condition of the company is weak but the requirement of employees at key positions is required.

Mr. Harsh is the CEO of ‘Dynamite Ltd. and does not want too much complication in the process of selection and placement. He wants to keep the process simple. The targets of production are already very demanding for the top management. They want a way where their least efforts are required to form the required workforce to be involved in special projects.

Mr. Vijay is the Managing Director of ‘Flying Ltd.’ Is strolling with a lack of balance in the composition of its workforce. There are certain departments in which the number of employees is surplus whereas there are certain departments in which there is a shortage of the required number of employees.

(a) How can Mr. Gaurav solve this problem? Give reason.

(b) Which type of recruitment will be good for Dynamite Ltd.? Give reason.

(c) What do you think could be the solution for Flying Ltd.?  Give reason.

Ans. (a) Mr. Gaurav can solve its problem by going for internal sources of recruitment because this mode of recruitment will be ‘Less Expensive.’

(b) The Dynamic Ltd. Should go for internal sources of recruitment as this mode of recruitment will be ‘Simple Precess.’

(c) The Flying Ltd. Should opt for internal sources of recruitment as employees can be transferred from surplus areas to areas where there is a shortage of employees. So, an optimum balance can be achieved within the departments.

Q22. In G.S. Alag Public School the principal has decided to improve the performance of teachers through proper motivation. She has planned to promote some of the good performing teachers to the post of head of departments in their respective wings. The adjoining school after having been informed about this decided to do the same but the problem with them is that the school is new and there is no scope of filling the higher slots with the teachers of the school as all of them are new.

This school then goes for external sources of recruitment. For it, two sources are checked.

(a) They check the date of people who applied for the jobs of teachers but were unable to make it. There was a chance that these people could be easily recruited since they were interested in the jobs last year.

(b) They approach a government office for this purpose. Here in this government agency link between job seekers and job providers is matched and unemployed people get registered for skilled as well as unskilled jobs.

Mr. Sagar a friend of the principal is a factory owner. He told her that finding people for jobs is easy for his factory as he generally requires unskilled labor. Daily notification is put outside the factor building and people apply and get selected on the spot.

(a) Identify and state the source of recruitment which is attempted by the school Principal of G.S. Alag Public School by quoting the lines.

(b) Identify the limitation of one of the sources of recruitment which is discussed in the last part of the first paragraph of the above case by quoting the line.

(c) Identify the two external sources of recruitment checked by the adjoining school by quoting the lines.

(d) Which external source of recruitment is applied by the friend of the principal? State.

Ans. (a) Internal source of recruitment.

‘She has planned…. Respective wings.’;

(b) Limitation of internal sources of recruitment- Not suitable for a new organization.

(c) (i) Casual callers.

‘They check…… last year.’

(ii) Employment exchange

‘This government… unskilled jobs.’

(d) Direct recruitment

“…as he.. selected on the spot.’

Q23.Payal who is a good human resources manager is one day called by her boss. He tells her to judge whether there is understaffing or overstaffing in the organization. She takes her work seriously and finds out that the total number of employees in the organization is less than required.

In her efforts to do so, she adopts three ways:

(i) She talks to the existing employees for information about candidates in their knowledge who can be recruited in the organization.

(ii) she goes to various MBA colleges to find out new talent.

(iii) She asks for a database of the candidates who applied last year but could not make it to the organization.

(a) Identify the type of analysis done by Payal by quoting the lines.

(b) Identify the process started by Payal to sort out the problem of understaffing by quoting the lines.

(c) Identify the three different methods of external sources of recruitment highlighted in the above case.

Ans. (a) Workforce analysis.

‘She takes ….. in the organization.’

(b) Recruitment

‘She then …… for the organization.’

(c) (i) Recommendations from present employees           

(ii) Campus recruitment

(iii) Casual callers.

Q24.  ‘Sab ka saath, sab ka Vikas’ is a company with having good human resources department. It provides learning opportunities that are designed to help the employees achieve growth. With time, the company has learned various methods to train its employees. In one of the methods, the trainee is put under the guidance of a master worker for skilled jobs. Apart from this, the company also uses this method of training which is suitable for training a large number of persons in handling sophisticated machinery and equipment. Things were not easy for the company at the stage of the selection process. The recruitment process was very lengthy and costly. Secondly, a very large number of candidates appeared for the different posts after recruitment was started. However, at the first stage of the process of selection, the managers eliminated unqualified candidates based on reasons that were not found in their application forms as they were unable to meet basic requirements.

(a) Identify the concept which ‘Sab ka Saath. Sab ka Vikas helps its employees to achieve by quoting the lines.

(b) Identify the two types of training highlighted above.

(c) Name the steps of the selection process at which unqualified candidates are eliminated.

(d) Identify the source of recruitment, used by the company to get the potential candidates.

Ans. (a) development – ‘it provides…… achieve growth.’

(b) (i) Apprenticeship training.

(c) Preliminary screening.

(d) External sources of recruitment.

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