Chapter 4: Staffing (CAIIB – Paper 3)

1. Which of the following best describes the primary function of staffing?

  • A. Preparing business strategies
  • B. Monitoring employee performance only
  • C. Recruitment, selection, training, and development of personnel
  • D. Establishing organizational hierarchy
Staffing involves placing the right person at the right job through recruitment, selection, training, and development. It ensures effective utilization of human resources.

2. Which of the following is NOT an objective of staffing?

  • A. Efficient utilization of manpower
  • B. Development of human resources
  • C. Providing job satisfaction to employees
  • D. Increasing fixed assets of the organization
Staffing objectives focus on human resources—recruitment, training, development, satisfaction. Increasing fixed assets is a financial function, not staffing.

3. Staffing is considered a __________ function of management.

  • A. Continuous
  • B. One-time
  • C. Temporary
  • D. Seasonal
Staffing is a continuous function because employees constantly need to be recruited, trained, promoted, or replaced as organizations evolve.

4. Which of the following reflects the “right man at the right job” concept?

  • A. Coordination
  • B. Staffing
  • C. Directing
  • D. Controlling
Staffing ensures proper matching of jobs with skills and competencies, which is the essence of the “right man at the right job” principle.

5. Which of these is an important nature of staffing?

  • A. It is carried out only at the top management level
  • B. It is unrelated to employee development
  • C. It is performed after other functions are complete
  • D. It is a pervasive function applicable at all levels of management
Staffing is pervasive because every level of management—from top to supervisory—requires staffing decisions to ensure effective functioning.

6. Training and development of employees is most closely related to which staffing function?

  • A. Recruitment
  • B. Selection
  • C. Human Resource Development
  • D. Compensation
Training and development come under HRD, which is a vital function of staffing to upgrade skills and knowledge of employees.

7. Which of the following is a qualitative objective of staffing?

  • A. Improving employee skills and competency
  • B. Increasing the number of employees only
  • C. Reducing the number of training programs
  • D. Maintaining high attrition rates
Qualitative objectives of staffing focus on improving employee quality through skill development and competency enhancement.

8. Which sequence correctly represents the staffing process?

  • A. Training → Recruitment → Selection → Promotion
  • B. Manpower planning → Recruitment → Selection → Training → Development
  • C. Promotion → Training → Development → Recruitment
  • D. Selection → Recruitment → Training → Manpower planning
Staffing generally follows: manpower planning → recruitment → selection → placement and orientation → training → development.

9. Which of the following is NOT considered a facet of staffing?

  • A. Manpower planning
  • B. Recruitment and selection
  • C. Capital budgeting
  • D. Training and development
Facets of staffing include manpower planning, recruitment, selection, training, and development. Capital budgeting relates to financial management, not staffing.

10. Which of the following highlights the significance of staffing in management?

  • A. Ensures effective utilization of financial resources
  • B. Reduces the importance of leadership in organizations
  • C. Creates job dissatisfaction among employees
  • D. Places right person at the right job, ensuring efficiency
Staffing ensures effective placement of employees, leading to efficiency, job satisfaction, and better performance. This highlights its significance.

11. One major significance of staffing is that it helps in __________.

  • A. Enhancing only organizational profits
  • B. Developing future managers through training and development
  • C. Avoiding delegation of work
  • D. Increasing centralization in decision making
Staffing not only fulfills current manpower requirements but also develops future managers through training, succession planning, and career development.

12. The system approach to staffing emphasizes:

  • A. Staffing is an interrelated process involving planning, recruitment, selection, training, and appraisal
  • B. Staffing is a one-time activity at the beginning of business
  • C. Staffing functions can be performed in isolation
  • D. Staffing is unrelated to organizational environment
The system approach treats staffing as an integrated process with interrelated stages, ensuring alignment with organizational goals and environment.

13. According to the systems approach, staffing is viewed as:

  • A. A financial activity
  • B. A static managerial function
  • C. A dynamic and continuous process interacting with other functions
  • D. A process independent of external environment
Under the systems approach, staffing is dynamic and continuous, constantly interacting with planning, directing, and controlling in a changing environment.

14. Which of the following best connects the significance of staffing with organizational goals?

  • A. Staffing reduces employee involvement in decision making
  • B. Proper staffing aligns individual competencies with organizational objectives
  • C. Staffing eliminates the need for motivation
  • D. Staffing is restricted only to top management level
Significance of staffing lies in aligning employee skills, knowledge, and roles with organizational objectives, leading to overall effectiveness and goal achievement.

15. Recruitment is best described as:

  • A. Process of evaluating employee performance
  • B. Placing the right person in the right job
  • C. Formal introduction of an employee into the organization
  • D. Process of searching for and attracting potential candidates for employment
Recruitment refers to identifying and attracting potential employees to apply for jobs in the organization. It creates a pool of candidates for selection.

16. Which of the following is NOT an internal source of recruitment?

  • A. Campus placement drives
  • B. Promotions
  • C. Transfers
  • D. Employee referrals
Promotions, transfers, and employee referrals are internal sources of recruitment. Campus placements are external recruitment methods.

17. The main difference between recruitment and selection is that recruitment ______ while selection ______.

  • A. Rejects candidates; attracts candidates
  • B. Develops skills; eliminates unfit candidates
  • C. Creates a pool of applicants; chooses the most suitable candidates
  • D. Provides training; evaluates performance
Recruitment is about attracting applicants, while selection involves filtering and choosing the best fit for the job.

18. Which of the following selection tools is most widely used in organizations?

  • A. Psychological tests
  • B. Interview
  • C. Group discussion
  • D. Reference checks
Although multiple tools exist, the interview is the most common and widely used selection method in organizations.

19. The primary objective of training is:

  • A. To improve employee skills and efficiency for current jobs
  • B. To eliminate employees with poor performance
  • C. To increase fixed costs of the organization
  • D. To replace promotions and transfers
Training focuses on enhancing the current skill set and efficiency of employees, ensuring they perform their present roles effectively.

20. Which of the following best differentiates training from development?

  • A. Training is long-term, development is short-term
  • B. Training is focused on future roles, development is job-specific
  • C. Training and development are identical processes
  • D. Training is short-term and job-oriented, while development is long-term and growth-oriented
Training improves skills for the current job (short-term), while development focuses on long-term growth and preparing employees for future responsibilities.

21. Retention of employees in an organization primarily aims at:

  • A. Reducing employee training expenses only
  • B. Minimizing attrition and ensuring long-term employee commitment
  • C. Avoiding promotions and transfers
  • D. Maintaining high employee turnover
Retention strategies focus on reducing attrition, motivating employees, and ensuring their long-term commitment to organizational goals.

22. Which of the following is NOT a common employee retention strategy?

  • A. Providing career growth opportunities
  • B. Competitive compensation and benefits
  • C. Reducing employee engagement activities
  • D. Recognition and reward programs
Employee engagement is crucial for retention. Reducing such activities will increase dissatisfaction and attrition, hence it is not a retention strategy.

23. Development differs from training because development:

  • A. Focuses only on improving present job performance
  • B. Is a short-term process
  • C. Is designed for lower-level employees only
  • D. Prepares employees for future roles and long-term growth
Development is long-term and focuses on preparing employees for future responsibilities, while training is short-term and job-specific.

24. Knowledge management in staffing is mainly concerned with:

  • A. Capturing, sharing, and effectively utilizing organizational knowledge
  • B. Reducing knowledge sharing to maintain secrecy
  • C. Replacing training with automation
  • D. Limiting employees’ access to learning resources
Knowledge management ensures knowledge is created, captured, stored, and shared across employees for organizational learning and decision-making.

25. Which of the following is a tool of knowledge management in organizations?

  • A. Restricting employee communication
  • B. Increasing employee turnover
  • C. Knowledge portals and intranet systems
  • D. Reducing documentation of processes
Organizations use knowledge portals, intranet systems, and digital libraries to manage, share, and store knowledge effectively.

26. Learning management in staffing emphasizes:

  • A. One-time classroom training only
  • B. Continuous process of skill upgradation and knowledge sharing
  • C. Avoiding technology-based learning platforms
  • D. Limiting employee growth to immediate tasks only
Learning management is a continuous process supported by training programs, e-learning platforms, and skill enhancement initiatives for employees.

27. Performance appraisal is primarily used to:

  • A. Punish low-performing employees
  • B. Replace employees quickly
  • C. Evaluate employee performance and provide feedback
  • D. Reduce training needs completely
Performance appraisal is a systematic evaluation of an employee’s job performance, used for feedback, rewards, and identifying training needs.

28. Which of the following is NOT a common method of performance appraisal?

  • A. 360-degree feedback
  • B. Management by Objectives (MBO)
  • C. Rating scales
  • D. Random selection of employees
Performance appraisals are structured and systematic; random selection is not a valid appraisal method.

29. Which of the following is a limitation of traditional performance appraisal?

  • A. Encourages two-way feedback
  • B. Often suffers from bias and subjectivity
  • C. Provides comprehensive development plans
  • D. Enhances organizational learning
Traditional appraisal methods are often one-sided and subjective, making them prone to personal bias.

30. Human Resource Development (HRD) focuses on:

  • A. Developing knowledge, skills, and attitudes of employees
  • B. Only enforcing disciplinary action
  • C. Maintaining salary records
  • D. Focusing only on recruitment
HRD is a continuous process that aims at enhancing knowledge, skills, and overall capabilities of employees for organizational growth.

31. Which of the following is NOT a component of HRD?

  • A. Training and Development
  • B. Career Planning
  • C. Payroll Processing
  • D. Performance Appraisal
Payroll is an administrative HR function, not a part of HRD. HRD is focused on training, career growth, and development.

32. The ultimate objective of HRD is to:

  • A. Reduce recruitment costs
  • B. Eliminate performance appraisal
  • C. Minimize employee benefits
  • D. Enhance both individual and organizational effectiveness
HRD seeks to align employee growth with organizational goals, leading to higher effectiveness and competitiveness.

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