Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Staffing

Question:

Read the following passage and answer the following question.

“Our assets walk out of the door each evening. We have to make sure that they come back the next morning” (as stated by Narayana Murthy former, CEO of INFOSYS.). At a time when organisations are debating the strategic importance of their human resources, Infosys, a consulting and software services organisation, includes its human resources on its balance sheet to affirm their asset value. The rationale for this is as follows: “The long-term success of a company is usually examined on certain financial and non-financial parameters. Human resources are among these new non-financial parameters that challenge the usefulness of evaluating corporate success solely on traditional measures. Human resources represent the collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organisation.” As a knowledge intensive company, Infosys recognises the value of its human assets in maintaining its competitive position. It realises that these assets can easily walk away, as competitors in India and abroad covet its IT talent. Consequently, the challenge facing Infosys is how to attract, retain and develop its human assets in a highly competitive and dynamic environment?

The above passage describes "Human resource" as an asset to the company. In order to increase the assets of the company it must conduct proper staffing, so that proper benefits of the same can be achieved. According to you, which of the following are the benefits of staffing to the organisation?

  1. Staffing helps in obtaining competent personnel for various jobs
  2. Higher performance by putting all the person for same jobs
  3. Ensures continuous survival and growth of the enterprise through planning
  4. It demotivates the personnel which eventually result in higher performance due to pressure
  5. Helps to ensure optimum utilization of human resource
Options:

1, 2 and 3

2, 4 and 5

2,3 and 4

1, 3 and 5

Correct Answer:

1, 3 and 5

Explanation:

The correct answer is option 4- 1, 3 and 5.

Staffing has been described as the managerial function of filling and keeping filled, the positions in an organisation structure. This is achieved by, first of all, identifying requirement of work force, followed by recruitment, selection, placement, promotion, appraisal and development of personnel, to fill the roles designed into the organisation structure. The following are the benefits of staffing to the organization:

  1. Helps in discovering and obtaining competent personnel for various jobs.
  2. Makes for higher performance, by putting right person on the right job.
  3. Ensures the continuous survival and growth of the enterprise through the succession planning for managers.
  4. Helps to ensure optimum utilization of the human resources. By avoiding overmanning, it prevents under-utilization of personnel and high labor costs. At the same time, it avoids disruption of work by indicating in advance the shortages of personnel.
  5. Improves job satisfaction and morale of employees through objective assessment and fair reward for their contribution.