In Firm Q, the Human Resources Department has a separate specialist for each of its functions, such as recruitment, training and compensation.
What does the number of human resource specialists in this department indicate about a firm?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → How big the business is
Option (1) How profitable the business is — Incorrect. The department manages people, so its size does not measure profit.
Option (2) How big the business is — Correct. The department grows as the firm employs more people. So the number of specialists shows the size of the business. A very large company, like Firm Q, has a specialist for each function.
Option (3) How skilled its workers are — Incorrect. Their number reflects how many people are managed.
Option (4) How fast the business is growing — Incorrect. It shows how big the firm is now.
NCERT (2026-27 Edition): “Staffing as part of Human Resource Management … In small organisations, managers may perform all duties related to employees salaries, welfare and working conditions. But as organisations grow and number of persons employed increases, a separate department called the human resource department is formed which has specialists in managing people. The management of human resource is a specialised area which requires the expertise of many people. The number of human resource specialists and size of this department gives an indication of the size of the business as well. For a very large company, the Human Resources Department itself will contain specialists for each function of this department. …” |