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Business Studies · 2026 · 6 marks
CBSE 2026 · Region 1 · Set 2 · Q32
(a) Explain the following steps in the staffing process: (i) Performance appraisal (ii) Promotion and career planning (iii) Compensation
(a)
Explain the following steps in the staffing process :
(i)
Performance appraisal
(ii)
Promotion and career planning
(iii)
Compensation
OR
(b)
Explain the following non-financial incentives :
(i)
Career advancement opportunity
(ii)
Employee participation
(iii)
Job enrichment
Marking-scheme solution
(i)
Performance appraisal
• Performance appraisal means evaluating an employee’s current
and/or past performance as against certain predetermined
standards.
• The performance appraisal process includes defining the job,
appraising performance and providing feedback
(ii)
Promotion and career planning
• Promotions are an integral part of people’s career where an
employee is placed in positions of increased responsibility, more
pay and job satisfaction.
• Managers need to design activities to serve employees’ long-term
interests and must encourage employees to grow and realise their
full potential.
(iii)
Compensation
• It refers to all forms of pay or rewards going to employees. It may
be in the form of direct financial payments like wages, salaries,
incentives, commissions and bonuses and indirect payments like
employer paid insurance and vacations.
• Direct financial payments may be time based or performance
based. Plans can also be created with the combination of time
based plus incentives for higher performance.
OR
Q (b) Explain the following non - financial incentives:
(i)
Career advancement opportunity
(ii)
Employee participation
(iii)
Job enrichment
(i)
Career advancement opportunity
• Managers should provide opportunity to employees to
improve their skills and be promoted to higher level jobs,
which works as a tonic and encourages employees to exhibit
improved performance.
• Appropriate skill development programmes, and sound
promotion policy will help employees to achieve promotions.
(ii)
Employee participation:
• It means involving employees in decision making of the issues
related to them.
• In many companies, these programmes are in practice in the
form of joint management committees, work committees,
canteen committees etc.,
(iii)
Job Enrichment
• It is concerned with designing jobs that include a greater
variety of work content, require higher level of knowledge and
skill.
• It gives workers more autonomy and responsibility and
provides opportunity for personal growth and a meaningful
work experience which motivates the individual.
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CBSE Class 12 Business Studies past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.