.

Column A

1. Provides liquidity

2. Reduces investment risk

 Methods of Training

The methods of training can be classified into two broad

categories, namely, on-the-job training and off-the-job training.

I. On-the-job training

- It is letting the employees learn while doing.

- The employee is shown to perform the jobs and allowed to
do under the supervisor’s supervision.
- The following are the common approaches used in
arranging on-the-job training.

a. Coaching – Refers to the assignment of a specific person to

act as either an instructor or resource person for the trainee.
b. Apprenticeship: It is a methodology of allowing the trainee to
learn and practice by performing the actual task on the
job(frequently used to train personal in some skilled trades –
electrician, mechanics, tailors, carpenters etc.).
c. Job rotation (cross training): It is a process of training
employees by rotating them through a series of related tasks. Here,
the individual is made to learn several different jobs within a work
unit or department.
d. Vestibule training: Equipment and procedures similar to
those used in the actual job are set up in a special working area
(vestibule school).The trainee is then taught in this school how to
use the machinery and perform the required job.

e. Self-improvement programs: Refer to acquiring knowledge

through additional reading and self-improvement programs.
 II. Off the job training

It is training conducted away from the actual work setting.

Common methods of off the job training include the following:

a. Lecture and classroom instruction: useful for teaching the

factual material, concepts, principles, theories, and their
application to job situation.
b. The conference method: It is a training method where
participants are required to pool their ideas, viewpoints,
suggestions and discuss them at conferences.
c. Group discussion: It is a method of training where the
members are requested to present papers and discuss about the
papers in a common platform.
d. Role playing (psychodrama, social-drama): It is a type of
training where the trainees act out a given role as they would be
performing in a stage play.
e. Case studies: It is a method of training where the trainees are
given cases and are given to identify basic problem and suggest
solution.

Development:
Development is the systematic process of education, training and growing by which a
person learns and applies information, knowledge, skills, attitudes and perceptions. It is
training offered at present for up grading the future performance of individuals at higher
level positions. Development programs seek to develop skills for future jobs.
Compensation: It refers to all forms of financial returns and tangible services and
benefits employee receives as a part of an employment relationship or it is the reward
that individuals receive in return for their labor from organization.
1.1. Performance Appraisal

Job performance: - Refers to the degree of accomplishment of task

that makes an individual’s job. It is measured in terms of results.
Performance appraisal is the process of determining and
communicating to an employee how he is performing the job. It is
periodic and impartial .

Benefits of performance appraisal

▪ Assists managers to observe their subordinates
more closely and do a better job coaching.
▪ Motivates employees by providing
feedback on job performance.
▪ Achieves better operational results - improved
work performance.
▪ Identifies development needs .
Transfer, Promotion, Demotion and Separation

▪ Transfer: is a movement of an employee from one job, section,

department staff, place or position to other place where salary,
status, and responsibility are the same. It is movement from one
job to the other.
▪ Promotion: Moving an employee to a job involving
higher pay, status, and thus higher performance requirements.
▪ Demotion: Shift of an employee to a lower position in
the hierarchy, salary, and responsibility due to inefficiency and
incompetence to fulfill assigned tasks. It causes frustration and
leads to a defensive or even aggressive behavior.
▪ Separation: Refers to those factors that bring the termination or
ceasing of the relationship between the organization and the
employee