UNIT : 3

Training &
Development
Concept of Training and Development
Training

The act of increasing the skills of an employee for doing

a particular job, and thus it’s a process of learning a
sequence of programmed behaviour to do that particular
job.

Development

It refers broadly to the nature and direction of change

induced in employees, through the process of training
and educative process.
 Training & Development : A Comparison

Training
 short term
 for a definite purpose.

Development
 long term educational
 for general purpose.
Role of Training & Development
Increase in Efficiency.
Increase in Morale of Employees.
Better Human Relations.
Reduced Supervision.
Increased Organisational Flexibility.
 Identifying Training Needs
Basic aim of Training
• Suitable change in the individual concerned.
• Should be related both in terms of organisation’s
demand and that of individual’s.
Various Methods for identifying Training Needs
• Organisational Analysis.
• Task Analysis.
• Man Analysis.
 Training Methods
• On the job Training (OJT)
• Demonstration
• Job Instruction Training
• Vestibule Training
• Apprenticeship
• Coaching/Understudy
• Job Rotation
• Simulation Training
• Sensitivity Training
Continue
 On the job Training (OJT)
• To learn by doing itself – Basic Theme
• Learns the method involved and gets
perfection over a specific task.
• On experience, job performance will be
high and become more efficient.

Continue
 Demonstration
• Describes and displays
• More effective – mechanical operations
• Combined with lectures and group
discussions

Continue
 Job Instruction Training (JIT)
• ‘Training through step-by-step’
• Sequential arrangement of all steps.
• What, how & when to be done
• Providing job information-Positioning the
trainees-try out work performance-
encouraging to ask questions.

Continue
 Vestibule Training
• Learn and develop skills in the similar
situations.
• 2 parts
• Lecture method and practical exercise
(workshops)
• More freedom for experimentation.

continue
 Apprenticeship
• Oldest and the most commonly used
method
• More time spent on productive job
• Programme of assignments according to
pre-determined schedule
• Employees – Paid

continue
 Coaching / Understudy
Coaching
Direct personal instructions and guidance
Continuous evaluation and correction
Quick feedback
Understudy
Assist and will be supervised.
 To develop family members/ sponsored
candidates
continue
 Job Rotation
• One job to another
• Broader view on system frame of
reference
• Cooperative approach to different
functions
• Confusion and affects performance

continue
 Simulation Training
• Duplication of orginisational situations in a
learning environment
• A single brief session
• Adapt to the situation and perceptions of
various roles
• Trainees participation is full
• Will be provided with feedbacks and self
evaluation by themselves

continued
 Transactional Analysis
• Social interaction b/w people- transaction
• Ego states should be studied
Parent Ego
Adult Ego
Child Ego
Legal forms of business organization
 Legal forms of business
organization:
All businesses must adopt some legal configuration that defines the
rights and liabilities of participants in the business’s ownership,
control, personal liability, life span, and financial structure.

The basic legal forms of organization include:

 Sole proprietorship

 Partnership.

 Corporations.
 Sole Proprietorship
The vast majority of small businesses start out as
sole proprietorships. These firms are owned by
one person, usually the individual who has day-
to-day responsibility for running the business.
The owner has all responsibility for any of its
liabilities or debts.
Advantages of a Sole Proprietorship

 Easy to established.

 Full control over all business decision.

 Owners keep all profit.

 The business is easy to dissolve, if desired.

Disadvantages of a
Sole Proprietorship
 It can be difficult for raise for the business.
 Responsible for every aspect for the
business.
 Unlimited liability i.e. personally liable for
business debts.
 Limited skills and knowledge.
 Partnership
In a Partnership, two or more people share ownership of a single
business. Like proprietorships, the law does not distinguish
between the business and its owners. The Partners should have a
legal agreement that sets forth how decisions will be made, profits
will be shared, disputes will be resolved, how future partners will
be admitted to the partnership, how partners can be bought out, or
what steps will be taken to dissolve the partnership when needed.
Advantages of partnership:
 Easy to established.

 Multiple sources of capital.

 Risks are spread among partners.

 Minimal government regulation

Disadvantages of partnership
 Partners are jointly and individually liable for the
actions of the other partners.

 Profits must be shared with others.

 The partnership may have a limited life

 Types of partnership
Types of Partnerships that should be considered:

i. General partnership: Partners divide responsibility for

management and liability, as well as the shares of profit or
loss according to their internal agreement.

ii. Joint Venture: Acts like a general partnership, but is

clearly for a limited period of time or a single project.
 Cont…
Limited Partnership: It means that most of the partners have
limited liability (to the extent of their investment) as well as
limited input regarding management decision, which generally
encourages investors for short term projects, or for investing in
capital assets.
 Corporations:
A Corporation, chartered by the state in which it is headquartered,
is considered by law to be a unique entity, separate and apart
from those who own it. A Corporation can be taxed; it can be
sued; it can enter into contractual agreements. The owners of a
corporation are its shareholders. The shareholders elect a board
of directors to oversee the major policies and decisions. The
corporation has a life of its own and does not dissolve when
ownership changes.
 Advantages of a Corporation
 Shareholders have limited liability for the corporation’s debts
or judgments against the corporation.

 Generally, shareholders can only be held accountable for

their investment in stock of the company.

 Corporations can raise additional funds through the sale

of stock.

 A Corporation may deduct the cost of benefits it provides

to officers and employees.
Disadvantages of Corporation
 The process of incorporation requires more time and money
than other forms of organization.

 Corporations are monitored by federal, state and some local

agencies, and as a result may have more paperwork to
comply with regulations.

 Incorporating may result in higher overall taxes. Dividends

paid to shareholders are not deductible from business income;
thus this income can be taxed twice.