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Unit – IV

Performance Management: Training & Development

Definition of Performance Management:

Performance is an employee’s accomplishment of assigned work measured against standards of the

employee’s position.

Performance Management is the process of planning and appraising performance, giving feedback and
counseling to an employee to improve his performance. Performance management (PM) includes activities to
ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus
on the performance of an organization, a department, employee, or even the processes to build a product or service, as
well as many other areas.
Thus, performance management involves these three processes: -

a) Planning Performance:
The superior has to determine what an employee is expected to achieve with a set of given resources and
within a time frame.

b) Appraisal:
Appraisal for whether the given target have been achieved or not.

c) Feedback:
Giving feedback to the employee concerned about where he lacks, and counseling how he can improve his
performance.

With reference to performance management, industrial psychology is concerned with:

1. Use of information from job analysis to determine a jobs performance dimensions. This helps to construct a
rating scale to describe each level of performance for the job.

2. Training of personnel on how to use the performance appraisal instruments. This includes the ways to
minimize bias when using the rating scale and also how to provide effective performance feedback.

3. Use of information obtained from performance appraisal for taking decision like transfer, promotion,
training, etc. and employee counseling.

Performance Appraisal:

A performance appraisal is a part of guiding and managing career development. It is the process of
obtaining, analyzing, and recording information about the relative worth of an employee to the organization.
Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and
weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's
performance in a job based on considerations other than productivity alone.

Objectives of Performance Appraisal: -

1. To review the performance of the employees over a given period of time.

2. To judge the gap between the actual and desired performance.
3. To help the management in exercising organizational control.
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4. Helps to strengthen the relationship & communication between superior, subordinate & management-
employees.
5. To diagnose the strength & weakness of the individuals so as to identify the training & development needs
of the future.
6. To provide feedback to the employees regarding their past performance.
7. Provide information to assist in the other personnel decisions in the organization.
8. Provide clarity on the expectations & responsibilities of the functions to be performed by the employees.
9. To judge the effectiveness of other human resource functions of the organization such as recruitment,
selection, training & development.
10. To reduce the grievances of the employees.

Pre-Requisites for Effective & Successful Performance Appraisal:

The essentials of an effective performance system are as follows:

 Documentation – means continuous noting and documenting the performance. It also helps the
evaluators to give a proof and the basis of their ratings.

 Standards / Goals – the standards set should be clear, easy to understand, achievable, motivating,
time bound and measurable.

 Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long
and complicated formats are time consuming, difficult to understand, and do not elicit much useful
information.
 Evaluation technique – An appropriate evaluation technique should be selected; the appraisal
system should be performance based and uniform. The criteria for evaluation should be based on
observable and measurable characteristics of the behavior of the employee.

 Communication – Communication is an indispensable part of the Performance appraisal process.

The desired behavior or the expected results should be communicated to the employees as well as the
evaluators. Communication also plays an important role in the review or feedback meeting. Open
communication system motivates the employees to actively participate in the appraisal process.

 Feedback – The purpose of the feedback should be developmental rather than judgmental. To
maintain its utility, timely feedback should be provided to the employees and the manner of giving
feedback should be such that it should have a motivating effect on the employees’ future performance.

 Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the
performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of
appraisals without personal bias and effectively.
Process of Performance Appraisal:

1. Objectives of performance appraisal

2. Establishing performance standards
3. Communicating standards and expectation
4. Measuring the actual performance
5. Comparing with standards
6. Discussing results / providing feedback
7. Decision making – taking corrective action
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1. Objectives of Performance appraisal:

 The first step is to define the objectives of the appraisal.
 It includes affecting promotions and transfers, assessing training needs, awarding pay hike and the like.

2. Establishing performance standards:

 The setting up of standards which will be used as the base to compare the actual performance of the
employees.
 It requires setting the criteria to judge the performance of the employees as successful or unsuccessful
and the degrees of their contribution to the organizational goals and objectives.
 The standards set should be clear, easily understandable and in measurable terms.

3. Communicating standards and expectation

 Once set, it is the responsibility of the management to communicate the standards to all the employees
of the organization.
 The employee should be informed and the standards should be clearly explained to them. This will help
them to understand their roles and to know what exactly is expected from them.

4. Measuring the actual performance

 that is, the work done by the employees during the specific period of time.
 It is a continuous process which involves monitoring the performance throughout the year. This stage
requires the careful selection of the appropriate techniques of measurement, taking care that personal
bias does not affect the outcome of the process and providing assistance rather than interfering in an
employees work.

5. Comparing with standards

 Comparison of actual performance with the desired or the standard performance tells the deviations in
the performance of the employees from the standards set.
 Result can show the actual performance being more than the desired performance or, the actual
performance being less than the desired performance depicting a negative deviation in the organizational
performance.
 It includes recalling, evaluating and analysis of data related to the employees performance.

6. Discussing results / providing feedback

 The result of appraisal is communicated and discussed with the employees with one-to-one basis.
 The results, the problems and the possible solutions are discussed with the aim os problem solving
reaching consensus.
 The feedback should be given with positive attitude so that it can have an effect on the employee’s
future performance.

7. Decision making – taking corrective action

The last step is to take decision which can be taken either to improve the performance of the employees, to
take the required corrective actions, or to take the related HR decisions like rewards, promotions,
demotions, transfers, etc.

Importance of performance Appraisal

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1. It provides a scientific basis for judging the merit or worth of employees who will try to improve their
performance if it is not up to the satisfaction of the employers.
2. It is a sound basis for promotion, demotion, transfer or termination of employees.
3. It helps in distinguishing between efficient and inefficient workers.
4. It helps the supervisors to evaluate the performance and to know the potentials of their subordinates
systematically.
5. Performance ratings helps in guiding the employees come to know where they stand and consequently they
try to improve their performance.
6. If the performance appraisal is done scientifically and systematically, it will prevent employee grievances.

Methods, Techniques or Tools for Performance Management:

Industrial psychology has developed several methods and techniques of appraisal for measurement of the
performance of an employee. Broadly, all the methods for performance management / appraisal can be
classified into: traditional (past – oriented) and modern (future – oriented) methods.

Traditional methods Modern Methods

Traditional Methods: these methods gives on the rating of the individuals personality traits, such as initiative,
drive, dependent responsibility, creativity, integrity leadership potential, intelligence, judgment, organization
ability, etc.

 Straight Ranking Method

 Paired-comparison method
 Man-to-man comparison method
 Forced choice method
 Essay appraisal method
 Critical incident technique
 Forced distribution method
 Field review method
 Checklists and Weighted Checklists

 Straight Ranking Method

 This is the simplest and most popular method for appraising employee performance.
 The typical rating scale method consists of several numerical scales on each criterion such as dependability,
initiative, output, attendance, attitude, co-operation, etc.
 Each scale ranges from excellent to poor.
 The rater checks the appropriate performance level on each criterion, then computers the employee’s total
numerical score. The number of points scored may be linked to salary increase, whereby some points may
amount to equal in rise of some percentage in salary.

Typical Graphical Rating Scale Method

Employee name……………… Job title………………………
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Department…………………... Rate…………………………..
Date…………………………...

Poor Fair Satisfactor Good Excellent

y

Quality off work: neatness, thoroughness and

accuracy of work, knowledge of job

Understanding: a clear understanding of the

factors connected with the job.

Attitude: exhibits enthusiasm and

cooperativeness on the job.

Dependability: conscientious, thorough, reliable,

accurate, with respect to attendance, reliefs, lunch
breaks, etc.

Quantity of work: volume of work under normal

working conditions.

Cooperation: willingness and ability to work

with others to produce desired goals.

Advantage:-
 Simplest method of separation the most efficient from the least efficient.
 Relatively easy to develop and use.

Disadvantage:-
 It is very difficult to compare a single individual with human being having varying behavior traits.
 This method can not indicate how much better or worse an employee is than another.
 It’s difficult when rating more than 20-30 people.
To overcome, these demerits paired-comparison technique has been evolved.

 Paired-comparison method
 By this technique, each employee is compared in every trait with all the other persons in pairs one at a time.
 Here judgment is easier and simpler than with the ordinary ranking method.
 Here, rater compare each man with every other man is known as the methods of paired-comparison.
 After completion of comparison, the results can be tabulated, and the rank is created from the member of
times each person is considered to be superior.
 For example, consider the situation where 4 employees are being evaluated by a supervisor.
If we form all possible pairs of men, we shall have
N(N-1)/2 pairs formed; in our case, 4(4-1)/2 =6pairs.
After the completion of comparison, the results can be tabulated, and the rank is created from the number of
times each person is considered to be superior.
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For the trait – Quality or work

As Person Rated
compared to
A B C D E

A + + - -

B - - -

C + -

D +

Disadvantage:
Not suitable when a group is large because, in that case, the number of judgments becomes excessively large.

 Man-to-man comparison method

 certain factors are selected for the purpose of analysis (such as leadership, dependability and initiative) and
the scale is designed by the rater for each factor.
 Each man is to be rated is compared with the man in the scale, and certain “whole man” to a “whole man”.

Advantage:-
As the rating scale is in terms of real individuals, even an untrained rater can understand how to evaluate a
person.

Disadvantage:-
. it may not be always possible to get a group of persons who may serve as standards.
. the standard setup by different raters may not be consistent. Therefore, the ratings by different judges will not
be comparable.

 Forced choice method

 This method was developed to eliminate bias and the prevalence of high ratings that might occur in some
organizations.
 The primary purpose of the Forced Choice Method is correct the tendency of a rater to give consistently
high or low ratings to all the employees.
 This method makes use of several sets of pair phrases, two of which may be positive and two negative and
the rater is asked to indicate which of the four phrases is the most and least descriptive of a particular
worker.
 Actually, the statement items are grounded in such ways that the rater can not easily judge which statements
apply to the most effective employee.
 The following box is a classic illustration of the forced choice items in organizations.
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Table: Forced Choice items

1. Least Most
A Does not anticipate difficulties A
B Grasps explanations easily and quickly B
C Does not waste time C
D Very easy to talk to D

2. Least Most
A Can be a leader A
B Waste time on unproductive things B
C All the times, cool and calm C
D Smart worker D

The favourable qualities earn a plus credit and the unfavourable ones earn the reverse. The worker gets over
plus when the positive factors override the negative ones or when one of the negative phrases is checked as
being insignificantly rated.

Disadvantages:-
1. Then overall objectivity is increased by using this methods in evaluation of employee’s performance,
because the rater does not know how high or low he is evaluating the individual as he has no access to the
scoring.
2. This method, however, has a strong limitation. In the preparation of sets of phrases trained technicians are
needed and as such the method becomes very expensive.
3. Further, managers may feel frustrated rating the employees ‘in the dark’.
In spite of these limitations, the forced choice technique is quite popular.

 Essay appraisal method

 Under this method, the rater is asked to express the strong as well as weak points of the employee’s
behavior.
 This technique is normally used with a combination of the graphic rating scale because the rater can
elaborately present the scale by substantiating an explanation for his rating.
 While preparing the essay on the employee, the rater considers the following factors:
(i) job knowledge and potentials of the employee;
(ii) Employee’s understanding of the company’s programmes, policies, objectives, etc.
(iii) The employee’s relations with co-workers and superiors;
(iv) The employee’s general planning, organizing and controlling ability;
(v) The attitudes and perceptions of the employee, in general.
 Essay evaluation is a non-quantitative technique.

Advantage:-
The Essay provides a good deal of information about the employee and also reveals more about the evaluator.
The strength of Essay method depends on writing skills of the worker and analytical ability of the rater.

Disadvantage:-
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1. It is highly subjective; the supervisor may write a biased essay. The employees who are sycophants will be
evaluated more favourably than other employees.
2. Some evaluators may be poor in writing essays on employee’s performance. Other may be superficial in
explanation and use flowery language which may not reflect the actual performance of the employee. It is
very difficult to find effective writers nowadays.
3. The appraiser is required to find time to prepare the essay. A busy appraiser may write the essay hurriedly
without properly assessing the actual performance of the worker.
4. On the other hand, appraiser takes a long time; this becomes uneconomical from the view point of the firm,
because the time of the evaluator (supervisor) is costly.

 Critical incident technique

 Under this method, the manager prepares list of statements of very effective and ineffective behavior of an
employee. These critical incidents or events represent the outstanding or poor behavior of employees on the
job.
 The manager maintains logs on each employee, whereby he periodically records critical incidents of the
workers behavior.
 At the end of the rating period, these recorded critical incidents are used in the evaluation of the worker’s
performance.
 An example of the good critical incident of a sales assistant is the following:
 July 20 – the sales clerk patiently attended to the customer’s complaint. He is polite, enthusiastic in
solving the customers’ problem.
 On the other hand the bad incident may appear as under:
 July 20 – the sales assistant stayed 45 minutes over his break during the busiest part of the day. He failed
to answer the store manager’s call thrice. He is lazy, negligent, stubborn and uninterested in work.

Advantages: -
1. Evaluation is based on actual job behavior.
2. It reduces the recency bias, if rater records incidents throughout the rating period.
3. This approach can increase the chance that the subordinate will improve because they learn more precisely
what is expected of them.

Disadvantages: -
1. Negative incidents may be more noticeable than positive incidents.
2. The supervisors have a tendency to unload a series of complaint about incidents during an annual
performance review session.
3. It results in very close supervision which may not be liked by the employee.
4. The recordings of incidents may be a chore for the manager concerned, who may be too busy or forget to do
it.

 Forced distribution method

 Forced distribution is a form of comparative evaluation in which an evaluator rates subordinates according
to a specified distribution.
 Unlike ranking methods, forced distribution is frequently applied to several rather than only one component
of job performance.
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 Use of the forced distribution method is demonstrated by a manager who is told that he or she must rate
subordinates according to the following distribution: 10 percent low; 20 percent below average; 40 percent
average; 20 percent above average; and 10 percent high.
 In a group of 20 employees, two would have to be placed in the low category, four in the below-average
category, eight in the average, four above average, and two would be placed in the highest category.
 The proportions of forced distribution can vary. For example, a supervisor could be required to place
employees into top, middle, and bottom thirds of a distribution.
 This method operates under an assumption that the employee performance level conforms to a normal
statistical distribution curve. Generally, it is assumed that employee performance level conforms to a Bell-
shaped-curve. With this method a predefined percentage of employees are placed in each of the five
categories as shown in this picture below:

No.
of
E
m
p
l
o
y
e
e
s

10% 20% 40% scores 20% 10%

Excellent

Good

Average

Below Average

Unsatisfactorily
Forced distribution on a Bell-Shaped-Curve

Advantage:-
Forced distribution is primarily used to eliminate rating errors such as leniency and central tendency.

Disadvantages: -
 This method forces discriminations between employees even where job performance is quite similar. For
example, even if all employees in a unit are doing a good job, the forced distribution approach dictates that a
certain number be placed at the bottom of a graded continuum.
 Raters and ratees do not readily accept this method, especially in small groups or when group members are
all of high ability.
 This method always assumes that employees performance level always conforms to a normal (or some
other) distribution.
 Superiors may resist placing any individual in the lowest (or the highest) group.
 Difficulties may arise when rater has to explain to the employee why he or she was placed in one grouping
and others in higher grouping.
 In a small group, there may be no reasons to assume that the bell-shaped distribution of performance really
exists.
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 Field review method

In this method, a senior member of the HR department or a training officer discusses and interviews the
supervisors to evaluate and rate their respective subordinates.

Advantage:-
i. This method is primarily used for making promotional decisions at the managerial level.
ii. Field reviews are also useful when comparable information is required from employees in different units or
locations.

Disadvantage:-
It is a very time consuming method.

 Checklists and Weighted Checklists

 A checklist represents, in its simplest form, a set of objectives and descriptive statements about the
employee and his behavior.

 If the rater believes strongly that the employee possesses a particular listed trait, he checks the item, and
otherwise, he leaves the item blank.

 A more recent variation of the checklist method is the Weighted Checklist. Under this, the value of each
question may be weighted equally or certain questions may be weighted more heavily than others.

The following are some of the sample questions in the checklist:

Checklist
Yes NO
Is the employee really interested in the task assigned?
Is he respected by his colleagues (co-workers)?
Does he give respect to his superiors?
Does he follow instructions properly?
Does he make mistakes frequently?

Advantage:

 Economy
 Ease of administration
 Limited training of rater.
 Standardization

Disadvantage:-
 Susceptibility to rater’s biases
 Misinterpretation of checklist items.
 Use of improper weights by HR department.
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Modern Methods: these methods give emphasis on the evaluation of work results-job achievement than on
personality traits. Its objective & worthwhile, especially counseling and development purpose.

 Behaviorally anchored rating scales (BARS)

 Management by objective (MBO)
 360 degree feedback method
 Assessment centers
 Human resource accounting method

 Behaviourally Anchored Rating Scales (BARS)

 This method used to describe a performance rating that focused on specific behaviors or sets as indicators of
effective or ineffective performance.
 It is a combination of the rating scale and critical incident techniques of employee performance evaluation.
 Behaviorally Anchored Rating Scales (BARS) are scales used to rate performance. BARS are normally
presented vertically with scale points ranging from five to nine.
 It is an appraisal method that aims to combine the benefits of narratives, critical incident incidents, and
quantified ratings by anchoring a quantified scale with specific narrative examples of good, moderate, and
poor performance.
 BARS were developed in response to dissatisfaction with the subjectivity involved in using traditional
ratings scales such as the graphic rating scale.
 Reviews of BARS concluded that the strength of this rating format may lie primarily in the performance
dimensions which are gathered rather than the distinction between behavioral and numerical scale anchors.
 In this method, an employee’s actual job behaviour is judged against the desired behaviour by recording and
comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.

The following chart represents an example of a sales trainee’s competence and a behaviourally anchored rating
scale:

Table: example of Behaviourally Anchored Rating Scale (BARS)

Performanc Points Behaviour
e
Extremely 7 Can expect trainee to make valuable suggestions for increased sales and
Good to have positive relationships with customers all over the country.
Good 6 Can expect to initiate creative ideas for improved sales.
Above 5 Can expect to keep in touch with customers throughout the years.
Average
Average 4 Can manage, with difficulty, to deliver the goods in time.
Below 3 Can expect to unload the trucks when asked by the supervisor.
Average
Poor 2 Can expect to inform only a part of the customers.
Extremely 1 Can expect to take extended coffee breaks and roam around
Poor purposelessly.

How to construct or develop BARS:

BARS can be developed using data collected through the critical incident technique, or through the use of
comprehensive data about the tasks performed by a job incumbent, such as might be collected through a task
analysis. In order to construct BARS several basic steps, outlined below, are followed.
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i. Examples of effective and ineffective behavior related to job are collected from people with knowledge of
job using the critical incident technique. Alternatively, data may be collected through the careful
examination of data from a recent task analysis.

ii. These data are then converted in to performance dimensions. To convert these data into performance
dimensions, examples of behavior (such as critical incidents) are sorted into homogeneous groups using the
Q-sort technique. Definitions for each group of behaviors are then written to define each grouping of
behaviors as a performance dimension

iii. A group of subject matter experts (SMEs) are asked to retranslate the behavioral examples back into their
respective performance dimensions. At this stage the behaviors for which there is not a high level of
agreement (often 50%- 75%) are discarded while the behaviors which were retranslated back into their
resepctive performance dimensions with a high level of SME agreement are retained. The retranslation
process helps to ensure that behaviors are readily identifiable with their respective performance dimensions.

iv. The retained behaviors are then scaled by having SMEs rate the effectiveness of each behavior. These
ratings are usually done on a 5 to 9 point Likert-type scale.

v. Behaviors with a low standard deviation (for examples, less than 1.50) are retained while behaviors with a
higher standard deviation are discarded. This step helps to ensure SME agreement about the rating of each
behavior.

vi. Finally, behaviors for each performance dimensions- all meeting retranslation and criteria will be used as
scale anchors.

Advantages:-
1. Because the above process typically requires considerable employee participation, its acceptance by both
supervisors and their subordinates may be greater.
2. Proponents of BARS also claim that such a system differentiates among behavior, performance and results
and consequently is able to provide a basis for setting developmental goals for the employee.
3. As it is job-specific and identifies observable and measurable behavior, it is a more reliable and valid
methods for performance appraisal.

 Management by objective (MBO)

The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954.
It can be defined as a process whereby the employees and the superiors come together to
identify common goals, the employees set their goals to be achieved, the standards to be taken as
the criteria for measurement of their performance and contribution and deciding the course of
action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of the
employee’s actual performance with the standards set. Ideally, when employees themselves have
been involved with the goal setting and the choosing the course of action to
be followed by them, they are more likely to fulfill their responsibilities.

Core Concepts
According to Drucker managers should "avoid the activity trap", getting so involved in their day to day
activities that they forget their main purpose or objective. Instead of just a few top managers, all managers
should:
 participate in the strategic planning process, in order to improve the implementability of the plan, and
 implement a range of performance systems, designed to help the organization stay on the right track.
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Managerial Focus
MBO managers focus on the result, not the activity. They delegate tasks by "negotiating a contract of goals"
with their subordinates without dictating a detailed roadmap for implementation. Management by
Objectives (MBO) is about setting yourself objectives and then breaking these down into more specific
goals or key results.
Main Principle
The principle behind Management by Objectives (MBO) is to make sure that everybody within the
organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness
of their own roles and responsibilities in achieving those aims. The complete MBO system is to get
managers and empowered employees acting to implement and achieve their plans, which automatically
achieve those of the organization.

THE MBO PROCESS

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity
of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help
in the achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are:

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Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are:

Specific
Measurable
Achievable
Realistic, and
Time bound.

The goals thus set are clear, motivating and there is a linkage between organizational goals and
performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set for the performance for the future with
periodic reviews and feedback.

Motivation – Involving employees in the whole process of goal setting and increasing employee
empowerment increases employee job satisfaction and commitment.

Better communication and Coordination – Frequent reviews and interactions between superiors and
subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems
faced during the period.

There are several limitations to the assumptive base underlying the impact of managing by objectives,
including:

1. It over-emphasizes the setting of goals over the working of a plan as a driver of outcomes.

2. It underemphasizes the importance of the environment or context in which the goals are set. That context
includes everything from the availability and quality of resources, to relative buy-in by leadership and stake-
holders. As an example of the influence of management buy-in as a contextual influencer, in a 1991
comprehensive review of thirty years of research on the impact of Management by Objectives, Robert Rodgers
and John Hunter concluded that companies whose CEOs demonstrated high commitment to MBO showed, on
average, a 56% gain in productivity. Companies with CEOs who showed low commitment only saw a 6% gain
in productivity.

3. Companies evaluated their employees by comparing them with the "ideal" employee. Trait appraisal only
looks at what employees should be, not at what they should do.

When this approach is not properly set, agreed and managed by organizations, self-centered employees might
be prone to distort results, falsely representing achievement of targets that were set in a short-term, narrow
fashion. In this case, managing by objectives would be counterproductive.

The use of MBO must be carefully aligned with the culture of the organization. While MBO is not as
fashionable as it was before the 'empowerment' fad, it still has its place in management today. The key
difference is that rather than 'set' objectives from a cascade process, objectives are discussed and agreed upon.
Employees are often involved in this process, which can be advantageous.

A saying around MBO -- "What gets measured gets done", ‘Why measure performance? Different purposes
require different measures’ -- is perhaps the most famous aphorism of performance measurement; therefore, to
avoid potential problems SMART and SMARTER objectives need to be agreed upon in the true sense rather
than set.
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 360 degree feedback method

 In human resources or industrial/organizational psychology, 360-degree feedback, also known as multi-

rater feedback, multisource feedback, or multisource assessment, is feedback that comes from all around
an employee.

 "360" refers to the 360 degrees in a circle, with an individual figuratively in the center of the circle.

 Feedback is provided by subordinates, peers, and supervisors. It also includes a self-assessment and, in
some cases, feedback from external sources such as customers and suppliers or other interested
stakeholders.

 It may be contrasted with "upward feedback," where managers are given feedback by their direct reports, or
a "traditional performance appraisal," where the employees are most often reviewed only by their managers.

 The results from 360-degree feedback are often used by the person receiving the feedback to plan training
and development.

 Results are also used by some organizations in making administrative decisions, such as pay or promotion.
When this is the case, the 360 assessment is for evaluation purposes, and is sometimes called a "360-degree
review."

360 degree appraisal has four integral components:

1. Self appraisal: Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance.

2. Superior’s appraisal: Superior’s appraisal forms the traditional part of the 360 degree performance appraisal
where the employees’ responsibilities and actual performance is rated by the superior.

3. Subordinate’s appraisal: Subordinates appraisal gives a chance to judge the employee on the parameters
like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc.

4. Peer appraisal: Also known as internal customers, the correct feedback given by peers can help to find
employees’ abilities to work in a team, co-operation and sensitivity towards others.
Customers Superior Suppliers/Vendors

Peers Employee Team

Members

Subordinate

Advantage:-

i. A good tool for matrix organizations as it is in line with the concept of a flat structure i.e. feedback comes
from multiple sources of contact.
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ii. It is helpful in assessing soft skills possessed by employees.

iii. It is effective and identifying and measuring interpersonal skills, customer satisfaction, and team-building
skills.

Disadvantage:-

 However, there is a great deal of controversy as to whether 360-degree feedback should be used exclusively
for development purposes, or should be used for appraisal purposes as well (Waldman et al., 1998).

 There is also controversy regarding whether 360-degree feedback improves employee performance, and it
has even been suggested that it may decrease shareholder value (Pfau & Kay, 2002).

 Outsource vendors are required to customize and administer the survey form, which may not be always
possible to.

 It is costly and requires time and energy commitment from the HR department.

 Assessment centers

 An assessment center consists of evaluation of behavior of the participants/candidates based on certain

chosen inputs.
 It may include extended period of assessment tasks, exercises and games, observations and interviews.
 It uses simulation techniques meaning that the tasks, exercises and games that are chosen simulate the real
life situations.
 It uses well trained expert observers/evaluators/assessors. Always multiple observers are appointed for
assessment center evaluation.
 Evaluations of the participants/candidates made by each expert evaluator are pooled in a meeting among the
assessors. They debate on the evaluations thus made and try to arrive at a consensus evaluation for each
candidate.
 Also, statistical processes are used to arrive at the evaluation of the participants.
 Assessment centers may be used by recruiters for the purpose of selection in an organization or for assessing
the potential of the employees of an organization for their performance appraisal for purpose of building an
appropriate human capital in the organization.
 Normally, in one assessment center, small group of participants (candidates/employees) ranging from
around five to twenty, form a batch.
 It is called "assessment centre" because organizations normally conduct these extended assessments in a
single center or venue, either an appropriate office space (say, training or learning center) of the
organization or in an external venue, such as a hotel or resort or training/learning center of another
organization.

Main Elements of Assessment Centers

 Analysis and zeroing in on relevant behaviors to be observed and evaluated.

 Selection of appropriate measurement techniques based on shortlisted behaviors.
 Use of multiple measurement techniques emphasis given on inclusion of simulation exercises.
 Careful selection of assessors. They may be internal (from the organization itself) or external.
 Appropriate training and briefing of the assessors.
 Careful design of the evaluation sheet, classifying the behaviors to be observed in meaningfully relevant
categories/dimensions.
 Multiple observations made for each dimension and for each candidate/participant.
 17

 Assessors’ observations and evaluation for each candidate entered/recorded into evaluation sheets.
 Finalization of assessments for each candidate by the assessors.
 Thus, assessors’ tasks include observing the behavior of the participants in simulation exercises, recording
observed behavior on evaluation sheets, classifying observed behaviors into appropriate dimensions, giving
rating to each dimension based upon behavioral evidence and sharing the assessment thus made in the
meeting of all the assessors.
 Pooling of the individual assessor’s evaluation of each candidate and integrating them by process of
discussion, reasoning and consensus for each candidate/participant.
 Use of statistical processes in arriving at final evaluation of the candidates/participants.

Advantage:-
i. Assessment centers not only help the organization in placing the right candidate in the right job/assignment
but also help in developing the participants.
ii. It appeals to the lay person’s logic and therefore is regarded as a fair means of assessment by the
participants.
iii. Assessment centers can be customized for different kinds of jobs, competencies and organizational
requirements.
iv. By involving the line managers in the procedure, assessment centers naturally gain support from them in the
management decisions.
v. Their validity coefficient is higher than most other techniques used for predicting performance. This is so
because it simulates real job challenges and evaluates the candidate on the same.

Disadvantage:-
i. It is very costly.
ii. Strong and unhealthy sense of competition among the assesses.
iii. Difficulty of conducting the test frequently.
iv. The possibility of overemphasizing the test performance.
v. Assessment centers require highly skilled observers as the observers may bring in their own perceptions and
biases while evaluating.

 Human resource accounting method

Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative
worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms
of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their
compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the
total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the
employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

Training & Development

Training: -
The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational
or practical skills and knowledge that relate to specific useful competencies.
It forms the core of apprenticeships and provides the backbone of content at institutes of technology (also known as
technical colleges or polytechnics).
In addition to the basic training required for a trade, occupation or profession, observers of the labor-market recognize
today the need to continue training beyond initial qualifications: to maintain, upgrade and update skills throughout
 18

working life. People within many professions and occupations may refer to this sort of training as professional
development.

Objectives of Training:-
1. to impart basic knowledge and skills.
2. to equip employee to meet the challenging requirement of the job and organization.
3. to teach the employees new techniques and ways of performing the job or operations.
4. to prepare employees for higher level task and build up a second line of competent managers.
5. to increase productivity and quality.
6. to increase efficiency.

Importance of Training and Development

 Optimum Utilization of Human Resources – Training and Development helps in optimizing the utilization of
human resource that further helps the employee to achieve the organizational goals as well as their individual goals.

 Development of Human Resources – Training and Development helps to provide an opportunity and broad
structure for the development of human resources’ technical and behavioral skills in an organization. It also helps the
employees in attaining personal growth.

Development of skills of employees – Training and Development helps in increasing the job knowledge and skills
of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the
employees.

 Increased Productivity – Training and Development helps in increasing the productivity of the employees
that helps the organization further to achieve its long-term goal.

 Team spirit – Training and Development helps in inculcating the sense of team work, team spirit, and inter-
team collaborations. It helps in inculcating the zeal to learn within the employees.

 Organization Culture – Training and Development helps to develop and improve the organizational health
culture and effectiveness. It helps in creating the learning culture within the organization.

 Organization Climate – Training and Development helps building the positive perception and feeling about
the organization. The employees get these feelings from leaders, subordinates, and peers.

 Quality – Training and Development helps in improving upon the quality of work and work-life.

 Healthy work environment – Training and Development helps in creating the healthy working
environment. It helps to build good employee, relationship so that individual goals aligns with organizational
goal.

 Health and Safety – Training and Development helps in improving the health and safety of the organization
thus preventing obsolescence.

 Morale – Training and Development helps in improving the morale of the work force.

 Image – Training and Development helps in creating a better corporate image.

 Profitability – Training and Development leads to improved profitability and more positive attitudes towards
profit orientation.

 Training and Development aids in organizational development i.e. Organization gets more effective decision
making and problem solving. It helps in understanding and carrying out organisational policies

 Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and
 19

other aspects that successful workers and managers usually display.

Technological changes

Human capital

Organizational Stability

Employee Training Needs Assessment

A "training needs assessment", or "training needs analysis", is the systematic method of determining if a
training need exists and if it does, what training is required to fill the gap between the standard and the
actual performance of the employee. Therefore, training needs analysis is

 Systematic method of determining performance discrepancies

Causes of performance discrepancies

Reasons to conduct training needs analysis

 Identify the deficiencies

 Determine whether employees lack KSAs

 Benchmark for evaluation of training

 Makes sure training is provided to the right people

 Increases the motivation of training

Training needs analysis includes:

 ORGANIZATIONAL ANALYSIS – It includes the analysis of

oMission & strategies of organization

oThe resources and their allocation
oInternal environment- attitudes of people
 OPERATIONAL ANALYSIS

oDetermine KSAs required for standard performance

oJob analysis
 PERSON ANALYSIS

o Specific areas of training required by the individual

o Whether an individual is capable of being trained
o The data regarding the person analysis can be collected through-

 Performance data
 Behavioral and aptitude tests &
 Performance appraisal

Performance apprairsal can significantly help in identifying the training needs of the employees.
Performance appraisal helps to reveal the differences and discrepancies in the desired and the actual
 20

performance of the employees. The causes of the discrepancies are also found whether they are due to
the lack of adequate training or not. The employee can also tell about his training requirements (if any) in
his self-appraisal. A performance appraisal after the training program can also help in judging the
effectiveness of the program.

Purpose of Training and Development

The quality of employees and their development through training and education are major factors in determining

long-term profitability of a small business. If you hire and keep good employees, it is good policy to invest in the

development of their skills, so they can increase their productivity. Training often is considered for new

employees only. This is a mistake because ongoing training for current employees helps them adjust to rapidly

changing job requirements.

Purpose of Training and Development Reasons for emphasizing the growth and development of personnel include

Creating a pool of readily available and adequate replacements for personnel who may leave or move up in the

organization.

Enhancing the company's ability to adopt and use advances in technology because of a sufficiently knowledgeable

staff. Building a more efficient, effective and highly motivated team, which enhances the company's competitive

position and improves employee morale. Ensuring adequate human resources for expansion into new programs.

Research has shown specific benefits that a small business receives from training and developing its workers,

including:

Increased productivity.

Reduced employee turnover.

Increased efficiency resulting in financial gains.

Decreased need for supervision.

Employees frequently develop a greater sense of self-worth, dignity and well-being as they become more valuable

to the firm and to society. Generally they will receive a greater share of the material gains that result from their

increased productivity. These factors give them a sense of satisfaction through the achievement of personal and

company goals.

Training Methods: On Job Training and off the Job Training Methods!

A large variety of methods of training are used in business. Even within one organization different
methods are used for training different people. All the methods are divided into two classifications for:
A. On-the-job Training Methods:
1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Technology
5. Apprenticeship
 21

6. Understudy

B. Off-the-Job Training Methods:

1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training

A. On-the-job training Methods:

Under these methods new or inexperienced employees learn through observing peers or managers
performing the job and trying to imitate their behaviour. These methods do not cost much and are less
disruptive as employees are always on the job, training is given on the same machines and experience
would be on already approved standards, and above all the trainee is learning while earning. Some of the
commonly used methods are:

1. Coaching:
Coaching is a one-to-one training. It helps in quickly identifying the weak areas and tries to focus on
them. It also offers the benefit of transferring theory learning to practice. The biggest problem is that it
perpetrates the existing practices and styles. In India most of the scooter mechanics are trained only
through this method.

2. Mentoring:
The focus in this training is on the development of attitude. It is used for managerial employees.
Mentoring is always done by a senior inside person. It is also one-to- one interaction, like coaching.

3. Job Rotation:
It is the process of training employees by rotating them through a series of related jobs. Rotation not
only makes a person well acquainted with different jobs, but it also alleviates boredom and allows to
develop rapport with a number of people. Rotation must be logical.

4. Job Instructional Technique (JIT):

It is a Step by step (structured) on the job training method in which a suitable trainer (a) prepares a
trainee with an overview of the job, its purpose, and the results desired, (b) demonstrates the task or the
skill to the trainee, (c) allows the trainee to show the demonstration on his or her own, and (d) follows
up to provide feedback and help. The trainees are presented the learning material in written or by
learning machines through a series called ‘frames’. This method is a valuable tool for all educators
(teachers and trainers). It helps us:

a. To deliver step-by-step instruction

b. To know when the learner has learned
c. To be due diligent (in many work-place environments)

5. Apprenticeship:
Apprenticeship is a system of training a new generation of practitioners of a skill. This method of
 22

training is in vogue in those trades, crafts and technical fields in which a long period is required for
gaining proficiency. The trainees serve as apprentices to experts for long periods. They have to work in
direct association with and also under the direct supervision of their masters.
The object of such training is to make the trainees all-round craftsmen. It is an expensive method of
training. Also, there is no guarantee that the trained worker will continue to work in the same
organisation after securing training. The apprentices are paid remuneration according the apprenticeship
agreements.

6. Understudy:
In this method, a superior gives training to a subordinate as his understudy like an assistant to a manager
or director (in a film). The subordinate learns through experience and observation by participating in
handling day to day problems. Basic purpose is to prepare subordinate for assuming the full
responsibilities and duties.

B. Off-the-job Training Methods:

Off-the-job training methods are conducted in separate from the job environment, study material is
supplied, there is full concentration on learning rather than performing, and there is freedom of
expression. Important methods include:

1. Lectures and Conferences:

Lectures and conferences are the traditional and direct method of instruction. Every training programme
starts with lecture and conference. It’s a verbal presentation for a large audience. However, the lectures
have to be motivating and creating interest among trainees. The speaker must have considerable depth in
the subject. In the colleges and universities, lectures and seminars are the most common methods used
for training.

2. Vestibule Training:
Vestibule Training is a term for near-the-job training, as it offers access to something new (learning). In
vestibule training, the workers are trained in a prototype environment on specific jobs in a special part of
the plant.
An attempt is made to create working condition similar to the actual workshop conditions. After training
workers in such condition, the trained workers may be put on similar jobs in the actual workshop.
This enables the workers to secure training in the best methods to work and to get rid of initial
nervousness. During the Second World War II, this method was used to train a large number of workers
in a short period of time. It may also be used as a preliminary to on-the job training. Duration ranges
from few days to few weeks. It prevents trainees to commit costly mistakes on the actual machines.

3. Simulation Exercises:
Simulation is any artificial environment exactly similar to the actual situation. There are four basic
simulation techniques used for imparting training: management games, case study, role playing, and in-
basket training.
(a) Management Games:
Properly designed games help to ingrain thinking habits, analytical, logical and reasoning capabilities,
importance of team work, time management, to make decisions lacking complete information,
communication and leadership capabilities. Use of management games can encourage novel, innovative
mechanisms for coping with stress.
 23

Management games orient a candidate with practical applicability of the subject. These games help to
appreciate management concepts in a practical way. Different games are used for training general
managers and the middle management and functional heads – executive Games and functional heads.
(b) Case Study:
Case studies are complex examples which give an insight into the context of a problem as well as
illustrating the main point. Case Studies are trainee centered activities based on topics that demonstrate
theoretical concepts in an applied setting.
A case study allows the application of theoretical concepts to be demonstrated, thus bridging the gap
between theory and practice, encourage active learning, provides an opportunity for the development of
key skills such as communication, group working and problem solving, and increases the trainees”
enjoyment of the topic and hence their desire to learn.
(c) Role Playing:
Each trainee takes the role of a person affected by an issue and studies the impacts of the issues on
human life and/or the effects of human activities on the world around us from the perspective of that
person.
It emphasizes the “real- world” side of science and challenges students to deal with complex problems
with no single “right” answer and to use a variety of skills beyond those employed in a typical research
project.
In particular, role-playing presents the student a valuable opportunity to learn not just the course
content, but other perspectives on it. The steps involved in role playing include defining objectives,
choose context & roles, introducing the exercise, trainee preparation/research, the role-play, concluding
discussion, and assessment. Types of role play may be multiple role play, single role play, role rotation,
and spontaneous role play.
(d) In-basket training:
In-basket exercise, also known as in-tray training, consists of a set of business papers which may include
e-mail SMSs, reports, memos, and other items. Now the trainer is asked to prioritise the decisions to be
made immediately and the ones that can be delayed.

4. Sensitivity Training:
Sensitivity training is also known as laboratory or T-group training. This training is about making
people understand about themselves and others reasonably, which is done by developing in them social
sensitivity and behavioral flexibility. It is ability of an individual to sense what others feel and think
from their own point of view.
It reveals information about his or her own personal qualities, concerns, emotional issues, and things
that he or she has in common with other members of the group. It is the ability to behave suitably in
light of understanding.
A group’s trainer refrains from acting as a group leader or lecturer, attempting instead to clarify the
group processes using incidents as examples to clarify general points or provide feedback. The group
action, overall, is the goal as well as the process.
Sensitivity training Program comprises three steps (see Figure 18.7)
 24

5. Transactional Analysis:

It provides trainees with a realistic and useful method for analyzing and understanding the behavior of
others. In every social interaction, there is a motivation provided by one person and a reaction to that
motivation given by another person.
This motivation reaction relationship between two persons is known as a transaction. Transactional
analysis can be done by the ego (system of feelings accompanied by a related set of behaviors states of
an individual).
Child:
It is a collection of recordings in the brain of an individual of behaviors, attitudes, and impulses which
come to him/her naturally from his/her own understanding as a child. The characteristics of this ego are
to be spontaneous, intense, unconfident, reliant, probing, anxious, etc. Verbal clues that a person is
operating from its child state are the use of words like “I guess”, “I suppose”, etc. and non verbal clues
like, giggling, coyness, silent, attention seeking etc.
Parent:
It is a collection of recordings in the brain of an individual of behaviors, attitudes, and impulses imposed
on her in her childhood from various sources such as, social, parents, friends, etc.
The characteristics of this ego are to be overprotective, isolated, rigid, bossy, etc. Verbal clues that a
person is operating from its parent states are the use of words like, always, should, never, etc and non-
verbal clues such as, raising eyebrows, pointing an accusing finger at somebody, etc.

Adult:
It is a collection of reality testing, rational behaviour, decision making, etc. A person in this ego state
verifies, updates the reaction which she has received from the other two states. It is a shift from the
taught and felt concepts to tested concepts.
All of us show behaviour from one ego state which is responded to by the other person from any of
these three states.

Meaning of Executive Development Program

 25

he executive development is a planned, systematic and continuous process of learning and growth designed to
induce behavioral change in individuals by cultivating their mental abilities and inherent qualities through the
acquisition, understanding and use of new knowledge, insights and skills as they are needed for more effective
performance of the work of managing. 

Managers develop not only by participating in formal courses of instruction drawn by the organisation but also
through actual job experience in the organisation. It should be recognised that it is for the organist ion to
establish the development opportunities for its managers and potential managers. But, an equal rather more
important counterpart to the efforts of organisation are those of the individuals. It should be accepted as
discipline of self education. Te individuals mus have the motivation and the capacity to learn and develop. As
the individuals differ from one another in aptitudes, attitudes, talents, aspiration, needs and motivation, they
should by provided an effective organisational climate to develop themselves and change their behaviour in
manging the people and resources.

On the job methods of Executive Development

(a) Coaching. Under this technique, the superior coaches the job knowledge and skill, to his subordinates. He
briefs the trainees what is expected of them and guides how to get it. He also watches their performance and
directs them to correct the mistakes. The main objective of this training is to provide them diversified
knowledge. Coaching is recognised as one of t managerial responsibilities, and the manger as an obligation to
train an develop the subordinates working under him. He delegates his authority to the subordinates to prepare
them to handle the complex situations. 

(b) Understudy. This system is quite different from the system discussed above. Under this system, a person is
specifically designated as the their apparent who is called the understudy. The understudy's future depends on
what happens to his superior leaves his post due to promotion, retirement or transfer. Te department manger
picks up one individual from the department to become his understudy. He guides him to learn his job and
tackle the problems tat confront the manger. 

(c) Job Rotation. Under this system, an individual is transferred one job to another or from open department all
to another in the co-ordinated and planned manager with a view to broaden the general background of the
trainee in the business. The trainees is rotated from one job to another and thus the acquires a considerable
degree of specialised knowledge and skill but a man can never acquire t diversified skill needed for promotion
unless is deliberately put in different types of situations. 

(d) Special Project. A special assignment is a highly useful training device, under which a trainee is assigned a
project that is closely related to his job. He well study the problem and submit the written recommendations
upon it. It will not only only provide the trainee a valuable experience in tackling the problem but would also
have the other values of educating the trainees about t importance of t problem but would also have the other
values of educating the trainees about the importance of the problem and to understand the organisational
relationship of the problem with different angles. Thus the trainee acquires knowledge of the assigned task and
learns to work with other s having different view points. 

(e) Committee Assignments: This system is similar to special project. Under this system an adhoc committee
is constituted and is assigned a subject related to the business to discuss and make recommendations. The
committee will study the problem, discuss it and submit to be report containing the various suggestions and
recommendations to the departmental manager. With a view to avoid the unnecessary hardships in studying the
problem, the members of the committee should be selected from different departments, having specialised
knowledge in different fields but connecting to the problem.
 26

Off the Job Executive Development methods:

(a) Special Courses. The method of special courses requires the trainee to leave the work place and to devote is
entire time to developmental objectives. The prime object of such special courses is to provide an opportunity to
te trainee to acquire knowledge with full devotion. Development is primary and work is secondary. These
courses may be conducted in a number of ways-Firstly, the organisation establishes such courses to be taught to
the trains by the members of the firm or by the regular instructor appointed by the firm or by the regular
instructor appointed by the firm or by the specialists (professors and lecturers_ from other outside institutions.
The second approach to this technique is to send the personnel to programmes established by the colleges or
universities. The organisation sponsors some of its members to the courses and bears the expenses. The third
approach to the technique is to work with a college or other institutions in establishing a course or a series of
courses to be taught by faculty members. A big organisation may starts its own training school. 

(b) Role Playing. Under this method, two or more trainees are assigned different roles to play by creating an a
rtificial conflict situation. No dialogged is given before hand. The role players are provided with he written or
oral description of the situation and the role to play. Sufficient time is given to the role players to plan tier
actions and they must act their parts before the class. For instance role playing situation may be a supervisor
discussing grievances with is subordinate. 

(c) Case Study. Case study technique is extensively used in teaching law, business management, human
relation, etc., to let the trainee understand that there mat be different solutions to a particular problem. Under
this method, the trainees are given a realistic problem to discuss, which is more or less related to the principles
already taught. This method provides an opportunity to the trainee to apply his skill to the solution of realistic
problems. Cases may be used in either of the two ways:- (i) They can be used after exposing the formal theory
under which the trainee applies their skill to specific situation, or (ii) They may be assigned to the trainees for
written analysis or oral discussion without any prior discussion of the theory. 

(d) Conference. A conference is a group meeting conducted according to an organised plan is which members
participate in oral discussion of a particular problem and thus develop their knowledge and understanding. It is
an effective training device for conferences members and conference leaders. Both learns a lot from others view
point and compare his opinions with others. The conference leaders may also learn how to develop his skill to
motivate people through his direction of discussion. Conferences may of three types:- (i) The directed or guided
conference, (ii) Consultative conference, and (ii) Problem solving conference. However guided conference is
generally used for training purposes. 

(e) Multiple Management. Under this system, a permanent advisory board or committee of executives study
the problems of organisation and make recommendations to the higher management for final decision. There is
another device, constituting a junior board of directors in a company for training the executives. The board is
given power to discuss any problem which the senior board of directors (constituted by shareholders) could
discuss. The utility of junior board is only to train the junior executives. Thus junior board discuss wide variety
of subjects which a senior board can discuss or in other way, it is an advisory body.

(f) Managements Games. It is a classroom exercise, in which teams of students compete against each other to
achieve common objective. The game is designed to be a close representations of real life conditions. The
trainees are asked to make decisions about production, cost, research and development, etc., for an organisation.
Since they are often divided into teams as competing companies, experience is obtained in team work. Under tis
method, the trainees learn by analyzing problems by using some intention and by making trial and error type of
decisions. Any wrong is corrected by the trainer or sometimes a second chance is given to to something all other
again.

(g) Syndicate Method. Under this method, 5 or 6 groups consisting of about 10 members are formed. Each
group (Syndicate) is composed of carefully selected men who, on the one and, represents fair cross section of
the executive life of t country, i.e. men from public sector and private sector undertakings, civil and defense
services, banking, insurance, etc., and on the other hand, a good well balance team of management from
 27

different fields, i.e., production, marketing, personnel, finance, etc. The groups are given assignments, made up
before hand to be submitted within a specified date and time. Each man in t group is appointed leader of the
group for the performance of the given task by rotation and so for the secretary for the subdivision of the
course. Each task is assigned in the form of a 'Brief', a document prepared by the experts on the faculty with
meticulous care. It also fixes the time by which the study is to be completed. Lecturers by experts are also
arranged to supplement the study. The report prepared an submitted by a group is circulated among the
members of the other groups for comparative study and critical evaluation. The leader or chairman of the group
is required to present the views of his group in the joint session and justify his group's view in case of criticism
or questions. 

(h) Sensitivity Training Or T-Group. In sensitivity training, the executives spends about two work-hours
attending t lectures on the subject such as leadership and communication. The members, under this method, sit
around a table and discuss. The trainer, usually a psychologist, neither leads the discussion nor suggests what
should be discussed but only guides the discussion. The members freely discuss and criticize the behaviour of
each other thereby giving a feed back positive or negative. 

(i) Programmed Instruction. Programmed instruction as gained a lot of importance both in training and in
industry in modern times it includes teaching machines, auto instruction, automatic instruction and programmed
learning. It is an application of science of learning to the task of training and education. The core feature of
programmed instruction is the participation by the trainee and immediate fed back by him. Programmed
instruction machines include films, tapes, programmed books, illustrations, printed material, diagrams, etc. it
performs two functions:- (i) provides information to the learner, and (ii) provides feed back whether the
response is correct or wrong. 

(j) Selective Readings. Many executives find it very difficult to do much reading other than that absolutely
required in the performance of their jobs. Some organizations provide some time for reading which will
advance the general knowledge and background of the individuals. Many organisations purchase some high
level journals like the Commerce, the Capitalist, the Management in Govt., etc,. And dailies like the Economic
Times, the Financial Express, etc.