Principles of Management

1. Unit 3 Organizing
Prepared by
S.David Blessley
AP/Mechanical Engg.,
Kamaraj College of Engineering & Technology,
Virudhunagar, Tamilnadu

2. organizing
• Organizing is the process of identifiying and grouping the activities
required to attain the objectives, delegating authority, creating
responsibilities and establishing relationships for people to work
effectively
• According to koontz and O’Donnel, the grouping of activities
necessary to attain objectives, the assignment of each grouping to a
manager with authority necessary to supervise it and the provision
for the coordination horizontally and vertically in the enterprise
structure.

3. Nature of organizing
• Common objectives
• Every organization exists to achieve some common objectives
• Specialization or division of Labour
• The total work of an organization is divided into functions and subfunctions to get the
benefits of specialization
• Activity of structure or chain of command
• The authority and responsibility of each position is graded on the basis of structure.
The chain of superior and subordinate relationship is known as chain of command
• Group of persons
• Organization is basically a group of persons. Therefore the activity of groups and
authority provisions must take into account the limitations and customs of people
• Co-ordination
• There is a mechanism for coordinating the different activities and parts of an
organization so that it functions as an integrated whole

4. • Communication
• Every organization has its own channel of communication which is essential for
mutual understanding and cooperation among members of the organization
• Environment
• Organization functions in an environment comprises of economic, social and political
factors. Hence an organization must be capable to adapt the changing environment
• Rules and regulation
• For effective functioning of an organization, it should have rules and regulations to
follow.

5. Purpose of organizing
• To facilitate administration
• To increase the efficiency of management
• To facilitate growth and diversification
• To ensure optimum use of man and material resources
• To facilitate coordination and communication
• To permit optimum use of technological innovations
• To stimulate creativity and initiative
• To facilitate the development of managerial ability

6. Process of organizing
• Determination of activities
• First step is to identify the work to be done to achieve the goal
• Division of work to different activities and again subdivision of activity into sub
activities
• It must be ensured that no single activity is left out and no unnecessary activity is
included
• Grouping of activities
• Grouping of closely related activities to form departments, divisions or sections
• Grouping is done on the basis of functions, processes, locations, products, customers
etc.,
• Such grouping of activities is known as departmentation
• Assignment of duties
• After grouping, the groups are assigned to different managers
• In other words, each group of related activities is assigned to a person most suited
for it and the specified persons are specialized in their respective fields
• This assignment of activities is done at all levels of operation

7. • Delegation of authority
• Each person has authority and also responsibility to perform assigned duties. It will
be very difficult for a person to perform the duties if there is no authority to do it
• Authority without responsibility is dangerous. Responsibility without authority is like
empty vessel
• Establishment of structural relationship
• The relationship between various positions and channels of communications
should be clearly defined
• The relationship between different departments and personnel must be clearly
established
• The structural relationship should be shown clearly with the help of organizational
charts and manuals
• Coordination of activities
• In order to get the optimum performance, coordination is necessary because there
must be separate and responsible persons to see whether all activities are going on
to accomplish the objectives of the organizations or not

8. • Formal organization
• A formal organization is one that has formalized intentional structure of roles or
positions
• In formal organization, the work is divided into activities and these activities are
grouped based on specialization needed
• Then, the activities are well defined and allocated to positions with the required
authority
• Eg. Institution, Industry etc.,
• Informal organization
• An informal organization is one that does not have intentional structure of roles or
positions. Informational organization involve joint personal activity that is carryout
without a conscious joint purpose
• In informal organizations, there is no formal relationship between people in the
group
• Eg. People who play cricked on holidays
• Morning coffee goers on regular basis

9. S.No. Formal Organization Informal Organization
1. Created for a specific purpose.
i.e., official and well planned
Created on its own. i.e.,Unplanned
and unofficial
2. Purpose is to achieve specific
organizational objectives
Purpose is to achieve social and
psychological satisfaction
3. Usually large Usually small
4. Well structured No definite structure
5. Authority flows from top to
bottom
Authority flows in any direction
6. Communication through formal
channel
Communication through informal
channel
7. Clear rules and regulations No clear rules and regulations

10. Departmentation
• The limitation on the number of sub ordinates that can be directly
managed would restrict the size of enterprises.
• Grouping activities and people into departments makes it possible to
form a structure and expand it in future.
• Departments differ with respect to basic patterns used to group
activities. These patterns are developed out of logic and practice.
Grouping activities according to functions .
Production-( creating utility or adding utility to a product or service)-
Selling –(finding customers, clients who will agree to accept the product or
service)
Financing –(raising invoices, collecting the money, accounting income and
expenditure and managing funds)
Departments -Engineering, production, sales and finance

11. Departmentation-Types
• Departmentation by function
• Departmentation by product
• Departmentation by territory or geography
• Departmentation by customer group
• Matrix Departmentation
• Departmentation by process

12. Departmentation by Enterprise Function
• It refers to grouping the activities of an enterprise on the basis of functions such as
production, sales, purchase, finance, personnel, etc.
• The actual number of departments in which an enterprise can be divided depends
upon the size of establishment and its nature.
• To begin with, we may have three or four main departments. With the growth in the
size of the business, more departments and sub departments may be created.
• Coordination of activities among departments may be achieved through rules and
procedures, various aspects of planning like goals & budgets, personal contacts and
some time liaison departments.

13. Advantages
• It is a very simple, natural and
logical way of grouping
activities.
• It promotes specialization and
expertise in various functional
areas and experts can be
employed.
• It facilitates coordination both
within the function and at the
interdepartmental level.
• It generates a high degree of
centralization at the level of
chief executive.
Drawbacks
• It may lead to internal frictions
among the various
departmental heads as one
department may ignore the
interest of the other,
• In functional departmentation,
men are experts of these areas
of function only. This hinders
the development of all round
managers.
• It leads to excessive
centralization and delay in
decision making.

14. Departmentation by Product
• The grouping of activities on the basis of products is very popular with large organizations
having distinct type of products.
• Under this method, all activities related to one type of product are put together under
one department under the direction of a production manager.
• An electronic company, for instance, may have different departments dealing in television
sets, radios and transistors, computers, agrodairy instruments, etc.
• Product wise departmentation is also known as multi functional product
departmentation, because each product department handles all the functions concerning
it.

15. Advantages
• It ensures better customer
service.
• Unprofitable product lines
can be easily determined.
• It solves the coordination
problem of functional
departments.
• It makes control effective.
• It assists in the
development of all round
managerial talent.
• It is flexible as a new
product division can be
easily added.
Drawbacks
• It is expensive because of
duplication of service
functions in various
product divisions.
• It may not be linked by
customers and dealers
who have to deal with
different salesmen of the
same enterprise for
different products.
• It may cause difficulty in
apportioning general
expenses incurred by the
enterprise as a whole.

16. Departmention by Territory or Geographical region
• When several activities of an enterprise are geographically dispersed
in different locations, territorial or geographical departmentation may
be adopted.
• All activities relating to a particular area or zone may be grouped
together under one zonal manager or head.

17. Advantages
• It enables an enterprise to
cater to the needs of local
people in a satisfactory
manner.
• It enables a concern to
make use of locational
advantages.
• It facilitates effective
control.
• It facilitates effective
coordination of activities
within an area.
• It assists in the
development of all round
managerial talent.
Drawbacks
• It is an expensive method
of creating departments
and over head costs are
also increased,
• It leads to duplication of
activities which creates
confusion and involves
costs,
• Coordination among
various territorial divisions
may become difficult.

18. Departmentation by Customer Group
• Grouping activities so that they reflect a primary interest in customers.
Customers are the key to the way activities are grouped when each
customer group is managed by one department head.
• The peculiar advantage of customer wise departmentation is that it ensures
full attention to different types of customer and their different needs, tastes
and requirements can be read effectively.
• However, it may not be possible to group all activities of an enterprise on
the basis of customers. There may be problems of coordination with other
departments.

19. Advantages
• Encourages focus on
customer needs
• Gives the customer the
feeling that they have an
understanding supplier
• Develops expertness in
customer areas
Drawbacks
• May be difficult to
coordinate operations
between competing
customer demands
• Requires managers and
staff expert in
customers’ problems
• Customer groups may
not always be clearly
defined (Large Corp.
firms vs other Corp.
businesses

20. Matrix organizations/Combined or Composite
method of Departmentation
• An enterprise may have to combine two or more of the methods of
departmentaton to make best use of all of them. Such a method is known
as combined or composite method of departmentation.
• Essence of Matrix organization is the combining of functional and project
or product patterns of departmentation in the same organisation
structure.
• There are functional managers in charge of engineering functions and an
overlay of project managers responsible for end product.
• This form is common in engineering and research and development

22. Advantages
• Oriented toward end
results
• Professional
identification is
maintained
• Pinpoints product profit
responsibility
Drawbacks
• Conflict in organizational
authority exists
• Possibility of disunity of
command
• Requires a manager
effective in human
relation

23. Departmentation by Process/ Equipment
• An enterprise where production is carried through different processes
may adopt process wise departmentation to enable continuous flow of
production.
• Similarly, where work is carried on machines which are common,
departments may be created on the basis of equipments, such as milling
departments, grinding departments, lathe department etc.
• The main advantage of this method is that it avoids duplication of
equipment in various activities. Moreover, specialized people can be
engaged to work on specialized equipments and departments.

24. Organization chart
Organization chart is a diagrammatic representation of various relationship in an
enterprise. The functions and their relationships, the channels of authority and
relative authority of different managers etc. are depicted in an organizational chart.
• Types of organizational chart
• Vertical
• Horizontal
• Circular
Vertical or Top to Bottom
In this chart major functions are shown at the top and subordinate functions in
successive lower positions.
In this chart scalar levels run horizontally and functions run vertically. The supreme
authority is shown at the top while lowest authority at the bottom.
In this diagram Board of Directors is at the top of the organization. The chief
executive controls various functional managers, who in turn have downward staff as
the requirement of respective departments.

26.  Horizontal or Left to Right:
 In this chart highest positions are put on the left side and those with diminishing
authority move towards the right.
 The organizational levels are represented by vertical columns, the flow of
authority from higher to lower levels being represented by movement from left to
right.
 In other words it presents scalar levels in a vertical position and functions
horizontally.

27.  Circular:
 In circular chart the center of the circle
represents the position of supreme
authority and the functions radiate in all
directions from the center.
 The higher the positions of authority, the
nearer they are to the centre and the lesser
the positions of authority, more distant they
are from the centre.
 The positions of relative equal importance
are located at the same distance from the
centre.
 The circular chart depicts the actual
condition of outward flow of formal
authority from the Chief Executive in many
directions.

28. • Organizational structure
• Organizational structure helps a company assign a hierarchy that defines roles,
responsibility, and supervision.
• It’s the plan that outlines who reports to whom and who is responsible for what. It’s
usually recorded and shared as an organizational chart that includes job titles and the
reporting structure.
• Types
• Based on flow of authority
• Bureaucratic or mechanistic structure
• Organic or adaptive structure
• Based on formation of groups
• Functional structure
• Divisional structure
• Matrix structure
• Team structure
• Network structure

29. • Bureaucratic or mechanistic structure
• It is a form of organization based on logic order and the appropriate use of formal
authority
• Its feature includes division of labour, hierarchy of authority, rules and procedures and
promotion based on competency
• The mechanistic or bureaucratic structure is a management system based on a
formal framework of authority which is carefully outlined and precisely followed
• Organic or adaptive structure
• Opposite to bureaucratic structure
• This type tends to work better in dynamic environments where managers need to
react quickly to change
• Much less formal and more flexible than mechanistic organization

30. • Functional structure
• It groups the positions into work units based on similar activities, skills, expertise and
resources
• Production, marketing, finance, R&D and human resources are common groupings
within a functional structure.
• People of similar skill sets are grouped together and managed by somebody

31. • Divisional structure
• These divisions are divided according to their organizational outputs. Each division
is headed by a manager responsible for all functions within his division
• The divisional structure is concerned with the placing groups of people with similar
abilities where they are needed all across the organization
• Each product line has its own functional organization with production, marketing,
R&D and finance departments, permitting each product line to function
independently of the other product lines because each product line is a component
of a larger organization

32. • Matrix structure
• Matrix structure is a hybrid organizational form containing characteristics of
both functional and divisional structures.
• It is a two dimensional pattern developed to meet the problems of growing size
and complexity of undertakings
• Since it violates the principle of unity of command. It employs the multiple
commands with related support mechanism and associated organizational culture
and behaviour
• In matrix organization, when one project is completed its resources are directed
to other projects. In addition, temporary project groups are created to handle
infrequent short term projects. Their activities on the project are coordinated and
controlled by the project manager. When the project is completed, the personnel
are returned to their original departments

34. • Team structure
• Team structure organizes the
separate functions into a group
based on overall objective.
• These cross functional teams are
composed of members from
different departments who work
together as needed to solve
problems
• Its intention is to break down the
functional barriers among
departments and create a more
effective relationship for solving
ongoing problems

35. • Network structure
• The network structure relies on other organizations to perform critical functions on a
contractual basis. In other words managers can deal a specific work to specialists
• Eg. A core company may give contract to specialized company for development of
software & website on their behalf.

36. RECRUITMENT
S.David Blessley

37. DEFINITION
Recruitment is defined as, “a process to discover the sources of
manpower to meet the requirements of the staffing schedule and to
employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of an efficient workforce.”
Edwin B. Flippo defined recruitment as “process of searching for
prospective employees and stimulating them to apply for jobs in the
organization.”

38. OBJECTIVES
To attract people with multi-dimensional skills and experiences
that suits the present and future organizational strategies.
To induct outsiders with a new perspective to lead the
company.
To develop an organizational culture that attracts competent
people to the company.
To search or hunt people whose skills fit the company’s values.
To search for talent globally and not just within the company.
To design entry salary that competes on quality but not on
quantum.
To anticipate and find people for positions that does not exist
yet.

39. FACTORS AFFECTING RECRUITMENT
Size of the organization.
The employment condition.
The effect of past recruiting efforts.
Working condition and salary.
Rate of growth of organization.
The future expansion plans.
Cultural, economic and legal factors.
Company’s image.
Recruitment policy.

40. STEPS INVOLVED IN RECRUITMENT PROCESS
 Recruitment process generally starts when the personnel department
receives requisition for recruitment from any department the
company.
 Locating and developing the sources for recruitment.
 Identifying the perspective candidate. Communicating the
information about the organization and job.
 Encouraging the identified candidate to apply for the position offered.
 Evaluating the effectiveness of the recruitment process.

41. SOURCES OF RECRUITMENT
Sources of recruitment is classified into
1) Internal sources
2) External sources

42. INTERNAL SOURCES
1.PRESENT PERMENANT EMPLOYEES:
Organizations consider the candidates from this source for higher level jobs due to:
a) Availability of most suitable candidates for jobs relatively or equally to the external
source.
b) To meet the trade union demands.
c) To the policy of the organization to motivate the present employees.
2.PRESENT TEMPORARY OR CASUAL EMPLOYEES:
Organizations find this source to fill the vacancies relatively at the lower level owing to
the availability of suitable candidates in order to motivate them on the present job.

43. CONTD..,
3.Retrenched or Retired Employees
• The organization takes the candidates for employment from the retrenched employees
due to obligation, trade union pressure and the like.
• Sometimes the organizations prefer to re-employ their retired employees as a token of
their loyalty to the organization.
4.Dependents of Deceased, Disabled, Retired and Present Employees
• Some organizations with a view to developing the commitment and loyalty of not only
the employee but also his family members and to build up an image to provide
employment to the dependents of deceased, disabled and present employees. Such
organizations find this source as an effective source of recruitment.

44. EXTERNAL SOURCES
1.Campus Recruitment:
• Different types of organizations like industries, business firms, service
organizations, social or religious organizations can get inexperienced
candidates of different types from various educational institutions like
Colleges and Universities imparting education in Science, Commerce, Arts,
Engineering and Technology, Medicine, Management Studies etc.
• Trained candidates are recruited with different specialization in subjects,
like engineering, medicine from the training institutes of State Government
or National Industrial Training Institutes for Engineers or Vocational
Training Centers.

45. 2.Private Employment Agencies/Consultants:
• Consultants in India perform the recruitment functions on behalf of a client company
by charging fee.
• These agencies function effectively in the recruitment of executives. Hence, they are
also called executive search agencies.
• Most of the organizations depend on this source for highly specialized positions and
executive positions.
3.Public Employment Exchange:
• The Government set-up Public Employment Exchanges in the country to provide
information about vacancies to the candidates and to help the organizations in finding
out suitable candidates.
• The Employment Exchange Act, 1959 makes it obligatory for public sector and private
sector enterprises in India to fill certain types of vacancies through public employment
exchanges.

46. 4.Data Banks:
• The Management can collect the bio-data of the candidates from different sources like
Employment Exchange, Educational Training Institutes, Candidates etc. and feed them in
the computer. It will become another source and the company can get the particulars as
and when it needs to recruit.
5.Casual Applicants:
• Depending upon the image of the organization, its prompt response, participation of the
organization in the local activities, level of unemployment, candidates apply casually for
jobs through mail or handover the applications in Personnel Department. This would be
a suitable source for temporary and lower level jobs.

47. 6.Trade Unions:
• Generally, unemployed or underemployed persons or employees seeking
change in employment put a word to the trade union leaders with a view to
getting suitable employment due to latter’s intimacy with management. As
such the trade union leaders are aware of the availability of candidates.
• In view of this fact and in order to satisfy the trade union leaders,
management enquires with trade unions for suitable candidates.
Management decides about the sources depending upon the type of
candidates needed. It has to select the recruitment technique(s) after
deciding upon source.

48. RECRUITMENT PROCESS
The recruitment process for most organizations follows a common theme:
• Applications/CVs are received, either online or by post;
• candidates are short-listed and invited for interview.
• The interview format can vary considerably and may include an assessment centre
and/or tests.
• The number of interviews also varies. Some companies are satisfied after one
interview, whereas others will want to recall a further shortlist of candidates for more.
• If successful at the final interview stage, the candidate will receive an official job offer.

49. INTERVIEW PROCESS
1.Chronological interviews
• These work chronologically through your life to date and are usually
based on your CV or a completed application form.
2.Competency-based interviews
• These are structured to reflect the competencies that an employer is
seeking for a particular job (often detailed in the recruitment
information). The chances are you will have focused on these in your
application form.

50. 3.Technical interviews
• If you have applied for a job or course that requires technical knowledge (e.g.,
positions in engineering or IT) it is likely, at some stage in the selection process, that
you will be asked technical questions or have a separate technical interview to test
your knowledge.
• One should be prepared to prove yourself but also to admit to what you don’t know
(stress that you are keen to learn)
4.Case study interviews
• Used largely by consulting firms, these can range from a straightforward brainteaser to
the analysis of a hypothetical business problem.
• You will be evaluated on your analysis of the problem, how you identify the key issues,
how you pursue a particular line of thinking and whether you can develop and present
an appropriate framework for organizing your thoughts. There is no perfect way to
solve each problem and how you reach your solution is often more important than the
solution itself.

51. INTERNAL RECRUITMENT-MERITS &
DEMERITS
MERITS:
• Suitability of exiting employees can be judged.
• It promotes loyalty and commitment among employees due to sense of security.
• It improves the morale of employees.
• It improves the level of motivation.
• The time and expenditure of recruitment is reduced.
DEMERITS:
• It may lead to inbreeding.
• It discourages flow of new blood into the organization.
• The choice of selection is restricted.
• Mobility of labor is restricted.

52. EXTERNAL RECRUITMENT MERITS &
DEMERITS
MERITS:
• Big pool of candidates can be acquired.
• As recruitment is done in the big market, the best selection can be made
irrespective of caste, color and creed.
• It never dries up.
• It helps to bring new blood and new ideas to the organization.
DEMERITS:
• It is more expensive.
• It is time consuming.
• Since employee will be new to the organization so orientation and training
is necessary.

53. SELECTION
• Selection is the process of choosing the most suitable worker for the
job.
• The aim of selection process is to determine whether a candidate
meets the qualification for a specific job and to choose the
candidate who is most likely to perform well in the job.
• Selection involves careful screening and testing of candidates who
have submitted their applications for any job in the organization.

54. Preliminary screening of applicants
Preliminary Interview
Application blank
Checking references
Employment tests
Psychological tests
Employment interview
Induction
placement
Final approval/selection
StepsinSelectionProcess

55. • Preliminary screening of applications
• Here, the applications are screened on the basis of standards set by the
organization.
• The applications of the candidates are screened by personnel managers and a list
of candidates is prepared to be called for the test and interview.
• Preliminary interview
• It is the first screening device utilized in the business organization
• In this process, the preliminary interviewer eliminates those who cannot be
employed because of factors such as age, inexperience, status, lack of training
etc.,
• Candidates also determine whether the type of job, salaries, working hours and
working environment are agreeable.

56. • Application blank
• Application blank is a brief written resume consisting of name, gender, date of birth,
nationality, address, experience details, extracurricular activities etc.,
• Through this application blank, the candidates provide useful information to the
employer in the areas of identification, education, experience, expected salaries etc.,
• It provides basic information about the prospective employee, which is helpful at the
time of interview.
• After screening the application blank, promising candidates are called for further
screening.
• Checking references:
• The prospective employee is asked to give two or more references of known persons
or previous employees
• References may be useful for analysing details of workers, past history, political
affiliations, special qualities, character and conduct etc.,

57. • Psychological tests:
• This test is a measure of behaviour, skill and ability of candidates.
o Intelligence tests-to measure mental ability, memory, reasoning, speed of thought,
ability to grasp
oProficiency or aptitude test- to judge the aptitude of candidates, existing abilities and
ability to learn new things
o Personality tests-to judge the emotional balance, maturity etc.,
o Achievement tests-to measure the level of knowledge and proficiency in certain skills
already achieved

58. • Employment interview
• It is a conversation between personnel managers and the prospective employees
for determining the suitability of a candidate for the particular job.
• Interview is a face to face communication and involves a great personal contact
with the candidate
Structured interview – interviewer asks a set of prepared questions
Unstructured interview – questions are not preplanned
Semi structured – asks set of prepared questions as well as some unprepared
questions
Group interview – several candidates are asked to discuss a topic to judge
interpersonal skills, comparative merit and leadership qualities etc.,
Stress interview – awkward questions are asked to test the stability of mind.
Depth interview – to tests the candidates indepth knowledge

59. • Final approval
• If a candidate successfully overcomes all the tests, he is declared selected
• An appointment letter mentioning the terms, pay scales ,posts will be given to the
candidate.
• Placement
• Placing is the assignment of employees to the jobs for which they appeared for
selection
• Placing the right job reduces labour turnover, eliminates turnover, wastages,
increases productivity and improves job satisfication.
• Induction
• Process of introducing new employees to the environment
• He must himself familarized with the new environment, new people and new
challenges.
• Must be informed about the history, achievements, diversified products, safety
provisions and promotion schemes etc.,

60. Training is the process of increasing the skills and knowledge of employees
for the purpose of improving individual and organizational performance
Importance of training:
• Increases productivity
• Reduces supervision
• Development and promotion of employees
• Increases organizational stability and flexibility
• Reduces accidents
• Improves morale
Training

61. Training methods
• On the job training
• Off the job training
• Job rotation
• Refers to rotation of the trainee from one job to another on a systematic and
regular basis to broaden his knowledge and skill
• In job rotation, the trainee occupies different position but have no administrative
authority & responsibility.
• Coaching
• In this method, coaching is done by skilled workers, by special training
instructors or by superiors
• Coaching should be done in a climate of confidence between the superior and
trainer
• The superior maintains a development file for each trainee indicating the training
details, skills acquired and performance of trainees

62. • Temporary promotion
• Junior employees are asked to act as senior officer whenever they go out of office
or on leave
• Temporary promotion is a training method as well as a convenience to the
organization
• When the acting people take decisions and assume full responsibility, the
experience can be valuable
• Committee assignments
• The trainee is made a member of different committees which gives him an
opportunity to interact with experienced managers.
• He may be asked to submit reports and proposals to the committee to develop
their analytical or conceptual abilities.

63. • Understudy
• In this, the trainee is made an assistant to current hob holders. He is expected to
fill up the vacancy of the later when he retires or promoted.
• This method provides the organization a person with as much competence as the
superior
• Experience
• Learning through experience is the oldest method of training
• This method is concerned with self learning
• It is a time consuming process

64. • Conferences and seminars
• A conference is a meeting of several people to discuss the subject of common
interest or an organizational problem. The problem is discussed under the
guidance of the conference leader who is an expert.
• This method is suitable when a problem has to analyzed and examined from
different view points.
• Every member learns by comparing his own views with those of others
• Case study
• In this, the trainee is given with an actual business situation in a comprehensive
manner and the trainee is asked to find out the solution for the problem. This
case study involves,
• Studying the case
• Getting the facts
• Determining what needs to be decided
• Deciding what should be done
• Finding solutions
• There may be many solutions to a problem. Each alternatives and their
implications needed to be examined.

65. • Simulation
• Real life situations are simulated to provide training to managers and employees
 Role play – the employee learns by playing a role in a dramatic setting which
corresponds to his work.
 Management game – it’s a class room exercise in which teams of managers
compete against each other in achieving common objectives. Under this method,
executives are trained to make decisions under uncertainity.
 In basket method – a trainee is provided with a desk and a variety of reports,
letters, notes, documents in his basket requiring immediate attention. He is asked
to go through the problems and to find an appropriate solution to the problem
and the solution is evaluated by top executives.

66. • Special training programs
• This method requires the employees to attend the special training programs
designed by the organization/institutions
• Selected employees are sponsored to attend the special training program
• The employees are trained in new techniques through lecture, G.D or workshop
• Readings, television and video instructions
• It’s a self learning process
• The training department provides a list of relevant books and the employee can
enhance his knowledge by reading books
• Television and video instructions can also provide self learning to employees.

67. • Apprenticeship training:
• One of the oldest method of training in technical fields
• Its purpose is to provide necessary background, practical knowledge and necessary
experience to the worker.
• It combines class room instructions, demonstrations and on the job training.
• This method is more expensive because it requires longer duration and continuous
supervision
• Class room training
• Traditional method of training
• The instructor gives lecture to the employees. It motivates and creates interest
among the trainees.
• Class room technique is suitable when concepts, problem solving ability and
attitudes are to be learned

68. • Vocational training
• Employees join in the industry for unskilled job without any eligible qualification
and work experience
• They are sent to vocational school to undergo training. There, the operation of
machines and some basic manufacturing techniques are taught to them.
• After that, the trained employees are assigned to the regular production work.