Business Studies

14

STAFFING

14.1 INTRODUCTION
Management means getting things done through people. Since
things are to be done by people, it is necessary that managers
should choose and employ people for the work to be performed.
In the previous lesson, you have studied the process of organising
as a function of management, which results in the creation of an
organisation structure. You must have noted that in the process
of organising, positions are created for people to perform
different types of jobs. Since there are different jobs to be
performed, suitable persons must be employed for the jobs.
Staffing refers to the function of manning the organisation
structure through proper recruitment, selection, training and
development of people for the positions created in the
organisation.
In a small business, like a grocery shop, the owner manager may
not need any one else to help him in running the shop. All the
activities are performed by him. But as a business unit grows in
size, the manager alone is not able to perform various jobs. It is
quite possible that you would like to apply for a job after passing
the Senior Secondary Examination, or you may start your own
business and would like to employ people to assist you in running
the business. In both the situations you will find it easier if you
know in advance how employees are recruited in a business. This
lesson familiarises you with the process of recruitment and
selection essential for filling up vacancies in an organisation.

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14.2 OBJECTIVES
After studying lesson, you will be able to:
• recall the meaning of staffing, recruitment and selection;
• distinguish between recruitment and selection;
• identify the steps in the process of recruitment and
selection;
• enumerate the sources of recruitment;
• explain the significance of selection and the process of
selecting employees;
• point out the relationship between recruitment and
selection.
• state the meaning of the term ‘training’ and differentiate
it from ‘development’.
• enumerate the methods of employee training.
• explain the meaning of performance appraisal and suggest
the basis of appraisal.
• state the meaning of promotion, demotion and transfer.
• outline the purposes of promotion and transfer.

14.3 WHAT IS MEANT BY STAFFING?

Staffing is a function of management which includes recruiting,
training, developing and maintaining competent managers and
operatives for performing organisational tasks in an effective
and efficient manner. It is a continuous process consisting of
several activities such as estimating manpower needs, recruitment,
selection, training and development, deciding on remuneration
for work to be performed, transfer, promotion and performance
appaisal.

(a) Recruitment
Meaning: The term recruitment is often used to signify
employment. We say, we have recruited such and such persons,
meaning thereby that we have employed them. Actually this is
not so. Recruitment is only one of the steps in the employment
of people. It is the process of attracting good applicants for
jobs. It is one of the important functions of management.
Managers know the nature of jobs to be performed, and the

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qualifications that the candidates must possess to perform the

respective jobs. For instance, if a manager needs typists, he has
to identify the typing speed required, and the candidates applying
for the job of typists must have the required speed. Similarly, to
be able to invite suitable applications, managers must know
wherefrom applications may be expected. Thus recruitment is
that part of the process of employing people which takes into
account the necessary abilities required for the jobs along with
the qualifications of the candidates. The task of hiring cannot be
started until suitable candidates apply for the jobs. People can
apply for the jobs only when they come to know about the
availability of the jobs. The manager has to decide how best to
inform the possible candidates about the jobs.

(b) Process of Recruitment

Before inviting applications for the job, there are a number of
steps to be taken by the manager in the process of recruitment.
(1) Job design: The first step is to clearly identify and outline
the nature of the job to be performed.
(2) Job description: The second step is to prepare a
description of what a job really is and to enumerate the
duties and responsibilities associated with it.
(3) Identifying the source of recruitment: The third step is
to decide from where suitable candidates will be available
for the job.
Let us now study about each of these steps in detail:

1. Job Design
A job refers to the tasks assigned to an individual employee
along with the duties connected with it. For instance, typing is
a job performed by a typist. The job of typist includes typing
letter, notes and memos, presenting the paper for signature, filing
the paper, and sending the papers to the despatcher. A job should
be designed to meet the organisational as well as individual needs.
Since people spend a great deal of time on a job, it is, therefore,
necessary to design jobs so that individuals are happy about their
jobs.

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2. Job Description
The job should be so described that the work to be done by an
employee is clearly known to him. For the manager who has to
recruit employees, describing the job helps in choosing the most
suitable candidate. Job description is a summary of what a job
really is. It includes:
• Work to be performed;
• Responsibilities involved in the job, for instance, the
typist has to keep the typewriting machine in proper order;
• The skill or training needed to perform the job; and
• The working conditions e.g., hours of work, etc. under
which the job is to be performed.
The job description is usually included in the advertisement for
the job. See an advertisement given below for the job of a typist
published in a newspaper. It mentions:
• qualifications that the candidates must possess to
perform the job;
• minimum typing speed required; and
• the experience needed.
In order to attract suitable candidates to apply for the job, it also
mentions the salary and other benefits payable. If you apply for
this job, you will have to mention all that is required. You will
have to give particulars including your name, address, age,
qualification, skill and experience, and a desire on your part to
serve the organisation. These particulars taken together are known
as a Bio-data of the candidate.
Job Advertisement for Typists

A REPUTED COMPANY
Requires Typists for its various offices.
The candidate should have passed Senior Secondary
Examination and should have minimum speed of 40 w.p.m.
in English Typewriting. Should have minimum three years’
experience as a typist in a reputed organisation. The
candidate should be below 25 years of age with 5 years
relaxation in case of SC/ST candidates. Other things being
equal, preference will be given to SC/ST candidates.

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The total initial emolument as the basic pay and DA will be

around Rs.1000/- per month. In addition, the post carries
other benefits like House Rent Allowance, Contributory
Provident Fund, Gratuity, Leave Travel Concession, Medical
Facilities, Reimbursement of Conveyance Expenses, Leave
Encashment, Group Accident Policy, etc. as per the rules
of the Company.
Typed applications giving full bio-data regarding age,
qualification, experience, salary drawn and salary expected,
whether belongs to SC/ST etc. should be addressed to Post
Box No.7176, New Delhi-110002 so as to reach by 6th
April, 1998.

Job description is helpful in various ways in the process of hiring.

When a job is described specifying its nature, and indicating the
duties and responsibilities connected with the job, it helps in
attracting the right type of candidates for the job. Job description,
which is also a part of job advertisement, should be written in a
manner so as to attract suitable candidates for the job. In selecting
the candidates again, job description helps in judging the suitability
of a candidate for the job. After the candidate has been selected
and given a position to perform the job, description forms the
basis against which the future performance of the employee can
be judged. For example, in the case of a typist, does he/she type
with the speed mentioned in the job description?

INTEXT QUESTIONS 14.1

Fill in the blanks with suitable words—

(i) The process of attracting good candidates for employment
is known as ..........
(ii) The first step in the .........process is to clearly identify
and note the nature of the job to be performed.
(iii) Hiring cannot be started until suitable candidates.........for
the job.
(iv) A summary of what a job really is and the duties and
responsibilities associated with it, is known as...........

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14.4 SOURCES OF RECRUITMENT

In an existing organisation, jobs which fall vacant may be filled
up by promoting or transferring employees already serving the
organisation. This is known as internal source of recruitment.
The vacancies may also be filled up by inviting outsiders to apply
for the job. This is the external source of recruitment. Thus
the sources of recruitment are two: internal and external.
(i) Internal source: In any business, existing employees
expect that they will have chances of promotion and will
be considered for higher positions before outsiders are
considered. Managers, therefore, promote and transfer
existing employees to fill the vacant positions. The
advantage of internal recruitment is that it is easier for
managers to fill vacancies from within the organisation.
Managers know the abilities and skills of their subordinates
and have records of their performance. Employees also
feel happy as their work performance is recognised by
management through promotion.
(ii) External source: All vacancies cannot be filled up from
within the organisation. Workers and office employees at
the lower level are always recruited from outside the
organisation. Some times when managers do not get
suitable persons from within the organisation, recruitment
takes place from external sources. Existing employees
may lack the skill, initiative, and qualification needed for
higher level jobs. Hence managers have to depend on
recruitment from outside the organisation. Further,
external recruitment permits choice from among a large
number of external candidates from which employees may
be recruited. Let us discuss some of those:
(a) Advertising vacancies in newspapers and journals:
Advertising vacancies in newspapers and journals is the
most popular method of inviting applications. If you are
in search of a job, you may look up various job vacancies
advertised in “Employment Weekly” or “Rojgar Samachar”
or daily newspapers. Many companies do their own
advertising for vacant positions, whereas some companies
appoint agencies to advertise on their behalf. People read
the advertisement and, if they are qualified for the job,
they apply for it. You may see a specimen of job
advertisement given earlier in the lesson for the job of
typists.
(b) Employment Exchanges: Employment exchanges have
been set up by the government for bringing together job-

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seekers and employers who are looking for employees.

Those who are in search of employment get themselves
registered with the local Employment Exchanges. The
Employment Exchange keeps a record of all such persons
who require help in finding jobs. The employer notifies
the vacancies to the nearest Employment Exchange. The
Employment Exchange in turn recommends names from
amongst the qualified employment seekers already
registered with it, and forwards the name to the employer
for consideration. Thus if you are seeking a job after
passing the senior secondary examination, it will be better
if you get yourself registered with the Employment
Exchange. It will forward your name to the prospective
employer keeping in view the suitability of the job as per
your qualifications.
(c) Educational, Professional and Technical Institutions:
Managers, officers, technicians like engineers,
electricians, mechanics and skilled workmen are often
recruited from institutions like Indian Institute of
Management, Indian Institute of Technology, Engineering
Colleges, Industrial Training Institutes, Polytechnics, and
Vocational Training Institutes. Companies send one or
more sernior managers to such institutions where they
meet the person in-charge of helping students in getting
jobs. They recommend suitable candidates who are
interviewed for selection by the managers.
(d) Applicants applying on their own initiative: Those
looking for jobs often apply on their own initiative. They
assume that certain vacancies are likely to arise, and apply
without reference to any job advertisement. Managers
keep record of such applications and contact suitable ones
when they need them.
(e) Recruitment at the factory gate: This is found mainly
in the case of factory workers to be recruited on daily
wages. Such workers gather in the morning at the factory
gate to serve as casual workers. Very often existing regular
employees go on leave, and vacancies are filled by
recruitment at the factory gate. These casual workers
having once served in the factory for some time are
considered for regular employment.
(f) Workers’ union: Workers’ unions also play an important
role as a source of recruitment. Some unions have
agreement with the management whereby managers are
required to consider employment of retrenched or former
employees on a priority basis.

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Significance of Recruitment
Inviting applications from qualified people is essential before
hiring employees. By attracting suitable candidates for the job
recruitment makes the task of managers easier in selecting
employees. Vacancies can be filled up satisfactorily only if
candidates who meet the job requirements have been prompted
to apply. Hence, only those candidates are considered by managers
who are qualified and interested in the jobs. It is, therefore,
essential to attract the right type of candidates through proper
means giving full information about the job to be filled up, and
then to select from among those who fulfil the requirements of
the job. The process of recruitment thus makes it possible to
employ right kind of people capable of doing the jobs efficiently.

INTEXT QUESTIONS 14.2

A. Which of the following are internal sources and which are

external sources of recruitment ? Put (T) and (F) in the
space provided opposite to the sources:
(i) Advertising vacancies in newspapers
(ii) Promoting and transferring existing employees to
fill the vacancies
(iii) Notifying vacancies to the Employment Exchange
(iv) Notifying vacancies to educational and technical
institutes
(v) Workers’ Union
(vi) Recruitment at the factory gate
(vii) Unsolicited applicants
B. Fill in the blanks with suitable words—
(i) Promoting and transferring present employees is
............... recruitment.
(ii) Those applying for the job on their own with
reference to advertisement are known as ...........
(iii) Casual unskilled workers are normally recruited at
the...............
(iv) Employment exchanges have been set up by the
government for bringing together .......... and..........

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C. Tick ( √ ) the correct statements—

(i) Advertisement is the most popular source of
recruitment (True/false)
(ii) Employment Exchanges are used for casual workers.
(True/False)
(iii) Recruitment at the factory gate is meant for
employing clerks. (True/False)

14.5 SELECTION
Meaning: Selection means going through the qualifications and
experience of the candidate to decide whether he /she fulfils the
requirements of the job. Thus selection is the process of
matching the candidate, his qualification, experience and skill
with the expectations of the job. To select the right employee
a proper procedure has to be adopted. The selection procedure
consists of a number of steps in logical order to identify the
candidates who are to be finally appointed. The manager examines
the qualification, skill, and work experience of each candidate
and determines his suitability for the job through the selection
procedure.

Selection Procedure
The selection procedure usually consists of the following steps—
1. Screening the applications
2. Testing the candidates
3. Checking references
4. Selection interview
5. Medical examination of the candidates
6. Issue of appointment letter
7. Filling out necessary employment records

1. Screening the Applications

After applications are received from candidates in reply to a job
advertisement, the same must be examined to decide which ones
deserve to be considered and followed up. Normally, the
candidates are asked to apply in their own hand writing on a plain
paper. Sometimes the job advertisement mentions the particulars

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to be given in the application. In many cases the candidates are

required to apply in the prescribed printed form of the company,
containing particulars of name, address, nationality, religion,
mother tongue, date and place of birth, marital status, education
and training, employment history, references, etc. A specimen
copy of such an application form is given at the end of this
lesson.
Screening means checking the contents of the applications to
ensure that the minimum eligibility conditions in respect of age,
experience, necessary qualifications and skills are fulfilled by
the candidates who have applied for the job. Screening is usually
done by a responsible officer of the company or by a screening
committee. The purpose of screening is to prepare a list of
eligible candidates who are to be considered for interview.
Candidates not eligible are thereby excluded from further
consideration.

2. Testing
After screening the applications, eligible candidates are given
tests to determine skill and abilities in terms of the requirements
of the job. For instance, if the job of typist requires a minimum
typing speed of 40 words per minute, a test is given to see whether
the candidates applying for the job have the required speed.
Passing the test by a candidate does not mean that he will be
employed. It implies that all those who have passed the test are
qualified for further screening, and those who have failed are not
to be considered.
Tests which the candidates are to take differ according to the
nature of the job. To judge the speed and accuracy of typing,
candidates may be given a standard paragraph to type. Similarly,
an auto mechanic may be asked to replace a piston. This is
known as skill or trade test. Skill or trade test is also known as
performance test. Intelligence test may be given for clerical
jobs. It may include test of general knowledge and general
awareness, test on arithmetic problems, and test of reasoning
power and vocabulary. For supervisory and managerial jobs tests
are given to find out the candidate’s personality, decision making
abilities, etc.

3. Checking References
Candidates who are to be considered for employment must have
other qualitities like balanced temperament, honesty, loyalty,
etc. These qualities cannot be judged on the basis of any test.

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Therefore, information is obtained and verified from the heads

of educational institutions where the candidates have studied,
or from the persons whose names are given by the candidates,
or from the previous employers. For certain jobs, like the job
of cashier or security guard, reliability is a very important job
requirement. Therefore, references are required to be checked
in such cases. In case of experienced employees, information is
checked from their previous employers.

4. Selection Interview
Interview is the most important part of the selection procedure.
It serves as a means of checking on the information given in
the application forms and the test results. It also provides an
opportunity to the candidates to inquire about the job and the
company during the course of interview. Managers get an
opportunity to go into the details of the candidate’s background,
and take a decision about their suitability for employment.
Selection interview should be conducted in an atmosphere which
is free from disturbance, noise and interruption, so that
conversation may proceed smoothly and the candidate is at
ease. Necessary seating arrangement and physical conditions
for interview like lighting, ventilation, etc. are of great
significance. Selection interview should be conducted in great
depth to judge the suitablilty of the candidates.

5. Medical Examination
Candidates finally selected for the job are asked to undergo
medical examination and get certificates of medical fitness. The
purpose of the medical examination is to see whether the selected
candidates are physically fit for job. It also points out whether
employees suffer from illness which can be cured before hiring
them e.g. poor eyesight. Such a step in the selection procedure
is essential for certain types of jobs as in the case of police and
army, where physical fitness is very important. For certain
categories of jobs like the job of driver, a proper eye-sight is
very essential.

6. Issue of Appointment Letter

Candidates finally selected are issued appointment letters. Such
a letter contains the terms and conditions relating to employment
of the candidates. Generally, the candidates are not appointed on
permanent basis because it is considered better to try them

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for a few months on the job itself. This period of service is

known as the period of probation. It is necessary because no
procedure of selection can fully establish the qualities of a
selected candidate. It is only by observing a person at work that
one can find out how he does his work and also how he behaves
with his superior and fellow employees. If during the probation
period, an employee is not found suitable his period of probation
may be extended. The management may also transfer him to some
other job at which he may be expected to do better. The
management may also provide him training to improve his
abilities.
The appointment of every candidate is followed by a record of
particulars of the employed. Such records are maintained and
described as employment record. It serves a useful purpose on
many occasions e.g., selection of employees for training, their
promotion, and wage and salary increase.
Though a number of steps in the selection procedure has been
listed, all the steps need not be taken by every employer. It
depends upon the nature of the jobs and the rank of the employees.
For employing casual workers on daily wages, simply an interview
by a company’s officer will do. Whereas for the job of a typist
or clerk, screening of applications, testing, and interview will be
required. Similarly, for the job of cashier, checking of reference,
in addition to other steps, may be needed.

Induction
Just as a systematic process of recruitment and selection is
preceded by manpower planning, it is succeeded by inducting the
new employee and placing him well on the job. Before actually
asking the new employee to perform the job, he is informed
about the duties of the job, person to whom he will report, the
starting wage or salary, promotional opportunities, hours of work,
and other benefits, in the company. Thus induction refers to
introducing a new employee to the company, its rules and
regulations, and to his superiors and fellow employees. A proper
induction programme results in development of a favourable
attitude towards the company and the job, and thus facilitates
efficiency on the job.
Usually the immediate supervisor of the new employee
introduces him to his job and the company. The new employee
is also given a booklet about the company and its rules and
regulations and working and service conditions. It may be
asked whether selection is possible without recruitment.

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Probably not. If there is no recruitment, there will be nothing to

select from. How can one select candidates unless they have
been asked to apply for certain jobs—which is the task of
recruitment. Thus, if selection is made without recruitment
• it will not be based on exact job requirements.
• it will be difficult to find suitable candidates to choose
from.
• right persons may not be employed in right jobs.
• performance and efficiency of not only the employee, but
also of the enterprise as a whole will suffer.

Difference between Selection and Recruitment

We have noted recruitment and selection as the two essential
parts of the hiring process. These are closely inter-connected.
Whereas recruitment helps in attracting suitable candidates,
selection helps in finding out the candidates who meet the
requirement of the job. Recruitment helps in selecting the most
suitable out of a large number of candidates. However, recruitment
and selection processes differ in certain respects. Recruitment
is the process of attracting good applicants for jobs, whereas
selection starts after applications have been received. In the
recruitment process, there is matching of the applicants with the
requirements of the job. Selection takes place after the matching
of candidates with job requirements. Recruitment involves decisions
as regards the sources of potential candidates. Selection is made
through different steps in the procedure adopted. Job description
helps the manager to attract good candidates, while selection of
the employee requires making the right choice.

INTEXT QUESTIONS 14.3

A. Arrange the following steps of selection procedure in

sequence by writing 1,2,3 ... against the steps
() i) checking references,
() ii) testing the candidates,
() iii) screening the applications,
() iv) medical examination of the candidates,
() v) selection interview, and
() vi) filling out necessary employment records.

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B. Match the words in column (A) with those in column (B)

by writing their numbers in the space provided.
Column A Column B
i) Performance test is given () (a) for the job of
supervisor
and manager
ii) Intelligence test is given () (b) for the job of
typists.

ii) Test to determine ( ) (c) for the job of

personality traits clerks and
is given cashiers.

14.6 TRAINING AND DEVELOPMENT

Helping employees to improve their knowledge and skill so as to
be able to perform their tasks more efficiently is known as
training. The term ‘development’ refers to the process of not
only building up the skill and abilities but also the overall
competence of employees to undertake more difficult and
challenging tasks.
Training is sometimes differentiated from development. The term
‘employee training’ is used to describe the process of improving
or building up skills and abilities of operatives or non-managerial
employees for their present jobs. The term ‘development’ is, on
the other hand, associated with the process of developing the
competence of managers not only for their present jobs but also
for future positions of greater responsibilities. However, this
distinction is not accepted by many experts.
Training is necessary for new employees as well as existing
employees for improving their performance at work. For new
employees, training is necessary to help them get acquainted
with the method of operation and skill requirement of the job.
For existing employees, training at periodical intervals is helpful
for learning better ways of doing the work, and also when they
have to undertake jobs of a different type.

(a) Methods of Training

There are different methods of training employees which can be
divided into two broad categories:

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(1) On-the-job methods, and

(2) Off-the-job methods.
1. On-the-job methods: In these methods, the employees
learn about their jobs while doing the work besides being
assisted by their supervisors or seniors. Thus, these
methods encourage self-learning through practice. Job
instruction or coaching, and job rotation, are two common
methods of on-the-job training. Another method is learning
while working as an assistant to a senior.
2. Off-the-Job methods: These methods involve training
employees away from the work place so that experts may
conduct the training and employees are free from
immediate pressure of completing the jobs at hand.
Lectures with demonstration, workshops, case discussions,
video shows, and films are some of the methods used in
this category of off-the-job training methods.

14.7 PERFORMANCE APPRAISAL : MEANING AND

BASIS
In simple words, performance appraisal means judging the
performance of employees. Specifically, it means judging the
relative abilities of employees at work in a systematic manner.
This enables managers to identify employees who are performing
the assigned work satisfactorily, and those who are not able to do
so, and why. To be fair, performance appraisal needs to be carried
out using the same methods and keeping in view uniform standards
of work. Generally it is the responsibility of supervisors to carry
out performance appraisal of their subordinates, and report it to
their own superiors. He may also have to identify the causes of
the performance especially if it has fallen short of the expected
performance.
The standard of performance or the expected level of performance
of an employee on a job forms the basis of judging how well the
employee has performed, and whether one employee is more
efficient than another in doing a similar job.
The standard of performance in some jobs may be the desired
quantity of output, or it may be the quality of work done,or it
may be minimisation of wastage of materials caused in the process
of work etc. It will be different for different types of jobs.
However, where quantity or number of units produced, or wastage
of materials form the basis of appraisal, it is likely to be more
accurate. On the other hand, quality of work done may be difficult

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to measure and hence performance appraisal may not be very

accurate.

Promotion and Transfer

When an existing employee is assigned a job carrying greater
responsibilities, more pay, higher status and prestige than the
present job, it is known as promotion. Thus, promotion refers to
the advancement of an employee to a higher level position. The
main purpose of promotion is to make fuller use of the abilities
of a person and also increase his job satisfaction.
The basis of promotion may be seniority in service or merit, that
is, superior abilities of the employees, or it may be seniority and
merit, that is, if merits are the same, one who is senior becomes
eligible for promotion. When the performance of an employee
is not satisfactory and it cannot be improved, he may be assigned
a job of lower rank carrying lower status and pay. This is known
as ‘demotion’. It may be regarded as a job change which is the
reverse of promotion.
Transfer refers to a type of job change where any employee is
assigned a different job of the same rank and pay, or when an
employee is assigned a similar job in another unit of the business
firm. Thus, transfer does not involve any increase in pay or
superior status. The objective of transfer may be to correct the
original assignment of the employee, to enable the employee to
gain in experience, or to give him greater job satisfaction, or to
balance the requirements of staff in different units.

INTEXT QUESTIONS 14.4

A. Match the words in column (A) with those in column (B)

by writing the numbers in the space provided:
Column A Column B
i) On-the-job training () (a) improving skill for
existing job
ii) Off-the-job training () (b) fuller use of abilities
iii) Employee development () (c) self-learning

iv) Employee training () (d) improving the compe-

tence for future job
v) Purpose of transfer () (e) training by experts

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vi) Purpose of promotion () (f) gain in experience

B. Which of the following statements are right and which are

wrong ?
(a) On-the-job training is imparted by supervisors or the
immediate superior.
(b) The basis of performance appraisal is the skill with which
an employee does his work.
(c) Wrong placement can be corrected by transfer of an
employee.
(d) Job rotation is one of the off-the-job methods of training.

WHAT YOU HAVE LEARNT

• In order to get things done through people, managers
choose and employ people in business. Various positions
are created for people to perform different types of jobs.
• The need for recruitment and selection arises to fill up
the vacant job positions. Recruitment is the process of
attracting good applicants for the jobs.
• The two main sources of recruitment are internal, and
external. Internal source consists of promoting and
transferring present employees to fill the vacancies. External
recruitment consists of advertising vacancies in the
newspapers and journals, employment exchanges, educational,
professional and technical institutes, recruitment at the factory
gates, unsolicited applicants, and the workers’ unions.
• Selection of candidates is another important step in the
hiring process. It implies the scrutiny of candidates to see
how far each one comes up to the job expectations, and
then matching of the candidates—his qualification,
experience, and skill with the requirements of the job.
• Such a matching is done through a selection procedure. A
number of steps are involved in the selection procedure.
These are: screening the applicantions, testing, checking
the references, and interviewing for final selection. The
selected candidates are issued appointment letters. The
last step in the selection procedure is to fill up and
preserve the necessary employment records.

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• Recruitment and selection are closely related to each other.

It is difficult to consider one without the other.
• Helping employees to improve their knowledge and skill
is known as training. Development refers to the building
up of overall competence to handle more difficult jobs.
• Training methods may be divided into two broad categories:
On the-job training and off-the job training.
• On-the-job methods involve learning while doing, whereas
off-the-job methods involve training away from the actual
work place.
• Performance appraisal means judging the relative abilities
of employees at work in a systematic manner. The standard
of performance usually forms the basis of performance
appraisal.
• Promotion refers to the advancement of an employee to
a higher level position with more pay, higher status and
greater responsibilities. The basis of promotion may be
seniority or merit or both seniority and merit.
• Transfer is a job change whereby an employee is assigned
a different job of the same rank and pay, or a similar job
in another unit.

TERMINAL EXERCISE
1. Why does the need for recruitment arise? Explain.
2. Explain the significance of recruitment in the hiring
process.
3. What is job description ? Describe its utility in the process
of hiring employees.
4. Enumerate the various sources of recruitment.
5. Mention the steps a manager needs to adopt for hiring
employees in business.
6. Why is internal source preferred to external source of
recruitment?
7. Briefly answer the following questions:
(a) What is job description ?
(b) What is the meaning of the term recruitment ?

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(c) What is the difference between selection and

recruitment ?
(d) Why are the references checked for the candidates
to be employed ?
8. Describe in brief the role of employment exchanges in
providing employment to the people.
9. You want to employ two clerks for your business.
Enumerate the sources of recruitment you will use and
why ?
10. What is selection ? Explain its significance in the hiring
process.
11. Mention the steps involved in a selection procedure.
Explain in detail any two of them.
12. What are the steps to be followed in the procedure for
selection of (a) clerks; (b) security guards; and (c) cashier.
Arrange the steps in order.
13. Explain the difference between selection and recruitment.
Can you proceed with selection without recruitment ?
14. Answer the following questions in brief :
(a) Which type of test measures the skill or
performance of the candidates ?
(b) What is the last step in the selection procedure ?
15. Write short notes on :
(a) selection interview;
(b) trade test;
(c) selection procedure; and
(d) Off-the-job training.
16. What purpose does promotion serve ? Why are employees
transferred ?
17. What is meant by performance appraisal ?
18. State the meaning of training and development.

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ANSWERS TO INTEXT QUESTIONS

1. i) recruitment
ii) recruitment
iii) apply
iv) job description
2. A. (i) E (ii) I (iii) E (iv) E (v) E (vi) E (vii) E
B. (i) internal (ii) unsolicited applicants (iii) factory
gate (iv) job seekers, employers.
C. (i) and (iv) are true statements.
3. A. (1) Screening the applications;
(2) testing the candidates;
(3) checking the references;
(4) selection interview;
(5) medical examination of the candidates;
(6) issuing appointment letter;
(7) filing out necessary employment records.
B. (i) (b)
(ii) (c)
(iii) (a).
4. A. (i) (c); (ii) (e); (iii) (d); (iv) (c); (v) (f); (iv)(b)
B. (a) and (c)- right.
(b) and (d) -wrong.

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