Introduction to management

On-the Job Methods : In internal facilities or ion-the-job facilities 

be included the practices and facilities given by the enterprise within 

the organization. Every good concern tries to provide internal 

development and training facilities to its managers or executives. 

On-the-job methods include (i) Experience, coaching and 

understudy, (ii) Position rotation, (iii) Special projects and task 

forces, and (iv) Committee assignments. 

(b) 

Off-the-Job Methods : Off-the-job methods include the external 

facilities which are also of two types; firstly for those new entrants 

who want to tap management as their carrier, and secondly, junior 

and middle level managers to equip them with higher skills, and 

techniques in management. The former type of training is provided 

by various universities and institutions running M.B.A. programmes. 

For junior executives various external facilities are provided by the 

business houses. Off-the-job methods include (i) Special courses or 

classes   

 

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(ii) Role playing. (iii) Sensitivity training. (iv)  Structured insight. 

(v) Stimulation. (vi) Conference training (vii) Multiple management. 

(viii) Special meetings. 

A. 

On-the-Job Methods  

1. Experience, 

Coaching and Understudy : Learning by experience 

cannot and should not be eliminated as a method of development. 

The executives may have any title while learning. An understudy 

may be assistant to someone; or special assistant to someone or any 

of the regular supervisory or executive positions developing upon his 

special assignment. He may be assigned as an understudy solely for 

training, or he may be assigned as a staff man or line assistant to a 

busy executive who really needs his help. The understudy may have 

regular duties for which he is solely responsible. Thus, he learns by 

experience, observation, guidance and coaching. This is a good 

method for new entrants, promoters and management trainees. 

2. 

Position Rotation : The objective of position rotation method is the 

broadening of the background of trainee in the organizations. If an 

executive is rotated periodically from one job to another job, he 

acquires a general background. The main advantages of position 

rotating are : provision of general background in all functional areas 

of the business, training in actual situation and competition among 

the rotating trainees. Due to rapid specialization, this techniques has 

become less effective and less useful. 

3. 

Special Project : Under special project method, an executive is 

assigned a project that is closely related to the objectives of his 

department. For example, a trainee may be asked to develop a 

system of cost control in the execution of an order. He will study the 

 

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problem and make recommendations upon it. This project would 

also help in educating the trainee about the importance of cost and 

the organizational relationships with the accounting and other 

departments. Thus, he acquires a knowledge of allied subjects also. 

4. 

Committee Assignment or Multiple Management : Under this 

method an adhoc committee is constituted. It is to discuss a subject 

and make recommendations. It is assigned objectives and 

responsibilities related to work of the organization. It makes a study 

of the problem and presents its suggestions to the departmental 

manager. Committee assignment may provide the necessary general 

background to the trainees because every member of the committee 

gets a chance to learn from others. It is an important device of 

educating the executives to acquire general background and to 

change their behaviour towards the selected problem. 

(B) 

Off-the-Job Training Methods 

1. 

Special Courses : The executives are required to attend special 

courses formally organized by the enterprise with the help of experts 

from educational institutions. The executives may also be sponsored 

to attend the courses to be conducted by management institutions. 

This method is popular these days. However, due to high fee only 

the big enterprises may send their executives to the management 

development courses run by management institutions. 

2. 

Role Playing : Under role playing method, a conflict situation is 

artificially created and two or more trainees are assigned different 

parts to play. The role players are provided with either a written or 

oral description of a situation and the role they are to play. They are 

allowed sufficient time to plan their actions. They must act out their 

 

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parts spontaneously before the class. For instance, a role playing 

situation may be a supervisor discussing a grievance with an 

employee or a salesman making a presentation to a purchasing agent. 

Role playing is used for human relations and leadership training. It 

aims to give trainees an opportunity to learn human relation skills 

through practice and to develop insight into one's own behaviour and 

its effect upon others. Thus, its objective is very narrow. It may be 

used in human relations training and sales training as both these 

involve dealing with other people. 

There are various advantages of Role Playing. Firstly,  it provides an 

opportunity for developing human relations, understanding and skills 

and to put into practice the knowledge they have acquired from text 

books, lectures, discussions, etc. Secondly,  the interview may be 

taped to provide the trainees a chance to listen to their performance 

and note their strengths and weakness. Lastly, knowledge of results 

is immediate, because the trainees as well as the listeners analyze the 

behaviour of the role players. 

3. Case 

Study 

: It is a means of simulating experience in the 

classroom. The trainees may be given a problem to discuss which is 

more or less related to the principles already taught. He is given an 

opportunity to apply his knowledge to the solution of realistic 

problems. Cases may use in following ways : 

(i) 

They can be used subsequent to the exposition of formal 

theory under which the trainees apply their knowledge of 

theory to specific situations. 

(ii) 

The trainees may be assigned to cases for written analysis and 

oral class discussion without any prior explanation of 

 

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pertinent concepts and theory. The case study places heavy 

demands upon the trainees. It requires that they should have a 

good deal of maturity and background in the subject matter 

concerned. 

Case studies are extensively used in teaching law, personnel 

management, human relations, marketing management and business 

policy in various  educational institutions. Students learn that there is 

no single answer to a particular problem. The answer of each trainee 

may differ. Case discussions will help them to appreciate each 

other's thinking. That is why, case studies are frequently used in 

supervisory and executive training in business. 

4. 

Conference Training : A conference is a group meeting conducted 

according to an organized plan. The members seek to develop 

knowledge and understanding by obtaining a considerable amount of 

oral participation. It is an effective training of both conference 

members and conference leader. As a member, a person can learn 

from others by comparing his opinions with those of the others. He 

learns the effect of closely controlling and dominating the discussion 

as compared to adopting a more then participants understand how 

groups actually work and give them a change to discover how they 

are interpreted by others. Sensitivity training aims at increasing 

tolerance power of the individual and his ability to understand 

others. The sensitivity training programmes are generally conducted 

under controlled laboratory conditions. 

 Multiple 

Approach 

The different methods outlined above are not mutually exclusive in nature. 

The typical programme of an executive development includes a number of 

 

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methods in both categories. Unlike training programmes for operatives, the 

primary emphasis in executive development should be on self-

development. Development which occurs on or near the job has the 

advantages or providing motivation and of being practicable. As regards the 

questions of choosing one method against the other, higher the position in 

the organization, the more important becomes off-the-job methods. The 

managers are highly educated persons and they can soon learn newer 

techniques. The important thing is to realize the need and importance of 

such development programmes and to provide these facilities. 

9.8 

DISTINCTION BETWEEN TRAINING AND DEVELOPMENT 

The terms 'training' and 'development' appear to be synonymous. But there 

are some differences in the content and techniques of employee training and 

development. According to Edwin B. Flippo, "Training is the act of 

increasing the knowledge and skills of an employee for doing a particular 

job, management development includes the process by which managers and 

executives acquire not only skills and competence in their present jobs, but 

also capacities for future managerial tasks of increasing difficulty and 

scope". 

Training is the act of enhancing the knowledge and skills of an employee 

for doing a particular job. It imparts specific skills for specific purposes. It 

is mainly job-oriented. Training is given to both new and old employees 

throughout their stay in the organization. In contrast, management 

development includes the process by which managers and executives 

acquire not only skills and competence in their present jobs but also 

capacities for future managerial positions. 

It may be noted here that the term 'training' refers to the programmes that 

facilitate the learning process which results in development (consequence 

 

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of training). Hence the terms 'training' and 'development' are applicable to 

both managers, executives and non-managerial personnel. 

 

The points of distinction between the two are given below : 

1. 

Training is the act of learning basic skills and knowledge necessary 

for a particular job or a group of jobs. Development, on the other 

hand, means growth of the individual in all respects. An organization 

works for the development of its executives in order to enable them 

to gain advanced knowledge and competence. 

2. 

The term 'training' is used in the context of imparting skills to 

operative workers. But the term development is used in the context 

of management development. 

3. 

Training programmes are directed towards maintaining and 

improving current job performance, while development programmes 

seek to develop skills and competence for future jobs. 

9.9 SUMMARY 

Training is the act of increasing the knowledge and skill of an employee for 

doing a particular job. Development implies an employee's growth and 

maturisation. A systematic training programme help in improving the 

quality and quantity of a worker's out put, makes the worker committed and 

loyal to the organization, facilitates promotion and replacement and reduces 

spoiled work and accident rate. 

9.10 SELF 

ASSESSMENT 

QUESTIONS 

1. 

Define training. Explain the advantages of training to the employees and 

the organization. 

2. 

Discuss the various methods of training which are used for training the  

employees. 

 

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3. 

Distinguish between : 

 

(a) 

Training and Education 

 

(b) 

Training and Development. 

4. 

What do you understand by Development? Discuss briefly the systems of 

Management 

Development.    

5. 

Enumerate and explain the  methods of Management Development. 

9.11  SUGGESTED READINGS  

1. 

Kootnz & O'Donnell, Principles of Management. 

2. 

Peter F. Drucker, Practice of Management 

3. 

J.S. Chandan, Management Concepts and Strategies. 

4. 

Arun Kumar & Rachana Sharma, Principles of Business Management. 

 

 

 

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Performance Appraisal 

Objective

:  The objective of this lesson  is  to  make  the  students  learn           

                    about the fundamental concepts and methods of 

                    performance appraisal. 

Counseling'>Lesson Structure 

10.1 Introduction

 

to Performance Appraisal and Counseling 

10.2  Significance of Performance Appraisal 

10.3  The Appraisal Process 

10.4  Methods of Performance Appraisal 

10.5  Grey Areas in Performance Appraisal 

10.6  Suggestions for Improvement 

10.7 Summary 

10.8  Self Assessment Questions 

10.9 Suggested 

Readings 

10.1  Introduction to Performance Appraisal and Counseling 

Performance Appraisal

: 

Performance appraisal is one of the important 

sub-functions of staffing function in management. Human behaviour is a 

complex phenomenon because no one can anticipate accurately what 

Subject: Management Concepts and Organizational Behaviour 

Subject Code: MC-101   

 

 

 Author: Dr. Karam Pal 

Lesson No: 10 

 

 

 

  

Vetter: Dr. B. K. Punia 

 

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exactly a man is going to do. The individual joins an organization to satisfy 

his objectives. But the organization also has its own goals, which need not 

to be in conformity with the individual goals. If the goals of the individual 

and organization are extremely contradictory, a conflict will arise which 

either result into suppression of human personality or a complete will set 

back to his work. It is not desirable that individual’s personality be 

suppressed but at the same time organization goals should also be achieved. 

For monitoring this process of achieving organizational goals, the 

performance of an individual needs to be assessed after a regular interval so 

that the desired behaviour could be maintained. This will also help the 

organization to satisfy the needs and the aspiration of the individual by 

providing him more facilities, improved working condition and carrier 

advancement. 

According to Heyel, “the performance appraisal is the process of evaluating 

the performance and competencies of an employee in term of the 

requirements of the job for which he is employed, for the purpose of 

administration including placement, selection for promotions, providing 

financial rewards and other actions which require differential treatment 

among the members of a group as distinguished from action affecting all 

members equally”. 

Performance appraisal may also be defined as a process that involves: -  

(i) 

Setting work standard;  

(ii) 

Assessing the employees actual performance relative to these 

standards; and 

(iii)  Providing feedback to employee with the aim of motivating 

that person to eliminate performance deficiencies or to 

continue to perform above par. 

 

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Counseling

: 

Counseling  follows performance appraisal. It covers two 

aspects i.e. ‘tell and sell’ where the boss tells his subordinates where they 

stand. He adopts the method of criticism and persuasion. These two are the 

fundamental tools for counseling. In counseling, the boss discusses the 

future development by encouraging his subordinates to appraise 

themselves. Here, the give and take problem-solving approach may be used 

throughout the counseling meeting. The aim of the counseling is not just to 

tell the subordinates what they have done wrong. Instead, the boss reveals 

the root cause of the problem and secures constructive solution. The boss 

generally avoids criticizing his subordinates and he tries to emphasize the 

organizational development. 

In fact, the performance appraisal process if understood in its 

comprehension includes the counseling and coaching. Counseling and 

appraisal differ slightly because the counseling is done on day-to-day basis 

whereas the appraisal is done after a regular interval. Therefore, it can be 

said that the performance appraisal would yield dividend only when the 

proper counseling takes place in an organization.   

10.2  Significance of Performance Appraisal 

(i) Performance 

improvement: 

Performance feedback allows the 

employee, the manager and personnel specialists to intervene with 

appropriate actions to improve performance. 

(ii) Compensation 

adjustments: 

Performance evaluations help the 

decision makers to determine who should receive pay raises. Many 

firms grant part or all of their pay increases and bonuses on the basis 

of merit, which is determined mostly through performance appraisal. 

 

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(iii) Placement 

decisions: 

Promotions, transfers, and demotions are 

usually based on past or anticipated performance. Often promotions 

are a reward for past performance. 

(iv) 

Training and development needs: Poor performance may indicate 

a need for retraining. Likewise, good performance may indicate 

untapped potential that should be developed. 

(v) 

Career planning and development: Performance feedback guides 

career decisions about specific career paths one should investigate. 

(vi)  Staffing process deficiencies: Good or bad performance implies 

strengths or weaknesses in the personnel department’s staffing 

procedures. 

(vii) Informational 

inaccuracies: 

Poor performance may indicate errors 

in job analysis information, human resource plans, or other parts of 

the personnel management information system. Reliance on 

inaccurate information may lead to inappropriate hiring, training, or 

counseling decisions. 

(viii) Job-design errors: Poor performance may be a symptom of ill-

conceived job designs. Appraisal help diagnose these errors. 

(ix) 

Equal employment opportunity: Accurate performance appraisals 

that actually measure job-related performance ensure that internal 

placement decisions are not discriminatory. 

(x) External 

challenges: 

Sometimes performance is influenced by 

factors outside the work environment, such as family, financial, 

health, or other personal matters. If these factors are uncovered 

 

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through appraisals, the human resource department may be able to 

provide assistance. 

(xi) Feedback 

to human resources: Good or bad performance 

throughout the organization indicates how well the human resource 

are performing. 

10.3  The Appraisal Process 

The performance appraisal process generally involves the following steps: 

Establish performance standards 

↓ 

Communicate performance expectations to the employees 

↓ 

Measure actual performance 

↓ 

Compare actual performance with standards 

↓ 

Discuss the appraisal with employee 

↓ 

If necessary, initiate corrective action 

 

The appraisal process begins with the establishment of performance 

standards. At the time of designing a job and formulating a job description, 

performance standard are usually developed for the positions. These 

standards should be clear and not vague and objective enough to be 

understood and measured. 

 

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Once performance standards are established, it is necessary to communicate 

these expectations. It should not be the part of the employees’ job to guess 

that what is expected of them. Unfortunately, too many jobs have vague 

standards. The problem is compounded when these standards are not 

communicated to the employees. It is important to note that communication 

is a two-way street. Mere transference of information from manager to the 

subordinate regarding expectations is not communication. Communication 

only takes place when the transference of information has taken place and 

has been received and understood by the subordinate. Therefore, feedback 

is necessary from the subordinate to the manager. Satisfactory feedback 

ensures that the information communicated by manager has been received 

and understood in the way it was desired. 

The third step in the appraisal process is the measurement of performance. 

To determine what actual performance is, it is necessary to acquire 

information about it. We should be concerned with how we measure and 

what we measure. To measure actual performance frequently, managers use 

four common source of information: personal observations, statistical 

reports, oral reports and written reports. Each has its own strength and 

weaknesses. However, a combination of them increases both the number of 

input sources and possibility of receiving reliable information. 

The fourth step in the appraisal process is the comparison of actual 

performance with standards. The attempt in this step is to note deviations 

between standard performance and actual performance so that we can 

proceed to the next phase of the appraisal process—the discussion of the 

appraisal with the employee. 

One of the most challenging tasks facing managers is to present an accurate 

appraisal to the subordinate and then have the subordinate accept the 

 

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appraisal in the right spirit. Appraising performance touches on one of the 

most emotionally charged activities - the assessment of another individual’s 

contribution and ability. The impression that subordinates receive about 

their assessment has a strong impact on their self-esteem and very 

important, on their subsequent performance. Of course conveying good 

news is considerably less difficult for both the manager and the 

subordinates than conveying the bad news that performance has been below 

expectations. In this context, the discussion of the appraisal can have 

negative as well as positive motivational consequences. This is reinforced, 

for example, when we recognize that statistically speaking, half of all 

employees are below average. 

The final step in the appraisal is the initiation of corrective action when necessary. 

Corrective action can be of two types. One is immediate and deals predominately 

with symptoms. The other is basic and deals with causes. Immediate correction action 

is often described as “putting out fires”, whereas basic corrective action gets to the 

source of deviation and seek to adjust the difference permanently. Coaching and 

counseling may be done or person may be deputed for formal training courses and 

decision making responsibilities and authority may be delegated to the subordinates. 

Attempt may also be needed to recommend for salary increased or promotions, if 

these decisions become plausible in light of the appraisal.