PRINCIPLES OF MANAGEMENT

Subject Code B-101

Section A: Objective Type
PART ONE:
Q1.A plan is a trap laid to capture the ___________
a) Future
Q2.It is the function of employing suitable person for the enterprise:
b) Staffing
Q3.______________ means group of activities & employee into departments:
(d) Departmentation
Q4. This theory states that authority is the power that is accepted by others.
a) Acceptance theory
Q5.It means dispersal of decision making power to the lower levels of the organization.
(c) Dispersion
Q6.This chart is the basic documentation of the organizational structure.
(c) Master Chart
Q7.Communication which flow from the superiors to subordinates with the help of scalar chain
is known as:
b) Downward communication
Q8.Needs for belongingness, friendship, love, affection, attention & social acceptance are
(d) Social needs
Q9.A management function which ensures jobs to be filled with the right people, with the
right knowledge, skill and attitude:
(a) Staffing defined
Q10.It is a process that enables a person to sort out issues and reach to a decision affecting their
life.
(d) Counseling
PART TWO:
Q1. Maslow's theory of Motivation
A profession one chooses should fulfill various aspects of ones life. For instance, one should
choose a job that completes ones own needs, values, and wants. A job can only hope to fulfill

these aspects for each person. However, it is up to an individual to seek a job that compliments
and executes these desires. Abraham Maslows hierarchy of needs is a theory that has been
around for at least fifty years and within the business world, it pertains to the behavior of the
workers.
This theory highlights the importance of understanding how people behave and function
in order to motivate them. Maslow discovered five levels of needs that people experience:
1.
2.
3.
4.
5.

Basic biological (Psychological) needs

Safety needs
Social needs
Ego (Esteem) needs
Self-actualization needs

In order to climb up the scale of needs, it is necessary that people complete level one
first. Peoples ultimate goal is to reach the level of self-actualization.
At this level, people try to be all that they can be by trying to reach their full potential
in every outlook. In order to assist employees to fulfill this aspect of life, a variety of job tasks
would be helpful. Furthermore, it would be beneficial to praise employees for their work done,
display awards earned, and offer incentives. This does not always work for every employer
and it is important to recognize the levels of Maslows theory to emphasize the level to which
an employee is at. Even if an employee is at the highest level of needs, it might not mean that
he/she is motivated. Motivation will occur when an employee feels satisfied within a job
setting, is consistently challenged, and has a variety of tasks to accomplish. Self-actualization
refers to the need to constantly be the best that one can be and this requires a challenge, as well
as recognition. This need for gratification will hopefully lead towards intrinsic motivation.
With any theory, there are bound to be flaws and some suggest that Maslows hierarchy
of needs should have fewer levels. Furthermore, it is suggested that only a few people are able
to reach the highest level of needs and this possess a problem, especially within the
workforce. It is important for employers to distinguish what levels their employees are at in
order to fulfill those levels to make their employees feel satisfied and in turn, motivated.
Not only is it important for employers to recognize which level their employees are at,
but for the employees to discover what needs have been met thus far and which they still need
to complete. Tests can be administered to allow individuals to discover what level they are at
within Maslows hierarchy of needs. Simple measures can be taken to help fulfill whichever
level an employee or individual is at in order to motivate him/her. Motivation is a necessity
for every person and it is important and essential to recognize motivation techniques to get the
best

Q2. MANAGEMENT BY OBJECTIVE

The Management by Objective (MBO) approach, in the sense that it requires all managers to
set specific objectives to be achieved in the future and encourages them to continually ask what
more can be done, is offered as a partial answer to this question of organizational vitality and
creativity. As a term, Management by Objectives was first used by Peter Drucker in 1954. A
management model that aims to improve performance of an organization by clearly defining
objectives that are agreed to by both management and employees. According to the theory,
having a say in goal setting and action plans should ensure better participation and commitment
among employees, as well as alignment of objectives across the organization. As a management
approach, it has been further developed by many management theoreticians, among them
Douglas McGregor, George Odiorne, and John Humble. Essentially, MBO is a process or
system designed for supervisory managers in which a manager and his or her subordinate sit
down and jointly set specific objectives to be accomplished within a set time frame and for
which the subordinate is then held directly responsible.
A key tenet of management by objectives is the establishment of a management information
system to measure actual performance and achievements against the defined objectives. The
major benefits of MBO are that it improves employee motivation and commitment, and ensures
better communication between management and employees. However, an oft-cited weakness
is that MBO unduly emphasizes the setting of goals to attain objectives, rather than working
on a systematic plan to do so.
All organizations exist for a purpose, and, to achieve that purpose, top management sets goals
and objectives that are common to the whole organization. In organizations that are not using
the MBO approach, most planning and objective setting to achieve these common
organizational goals is directed downward. Plans and objectives are passed down from one
managerial level to another, and subordinates are told what to do and what they will be held
responsible for. The MBO approach injects an element of dialogue into the process of passing
plans and objectives from one organizational level to another. The superior brings specific
goals and measures for the subordinate to a meeting with this subordinate, who also brings
specific objectives and measures that he or she sees as appropriate or contributing to better
accomplishment of the job. Together they develop a group of specific goals, measures of
achievement, and time frames in which the subordinate commits himself or herself to the
accomplishment of those goals. The subordinate is then held responsible for the
accomplishment of the goals. The manager and the subordinate may have occasional progress
reviews and reevaluation meetings, but at the end of the set period of time, the subordinate is
judged on the results the he or she has achieved. He or she may be rewarded for success by
promotion or salary increases or he or she may be fired or transferred to a job that will provide
needed training or supervision. Whatever the outcome, it will be based on the accomplishment
of the goals the subordinate had some part in setting and committed himself or herself to
achieving.
Q3 Co-ordination and Co-operation

Coordination and cooperation are two related concepts but not exactly same. There are some
differences between these two concepts and we can explain difference between cooperation
and coordination with the help of following points and suitable examples.
CO-ORDINATION VS CO-OPERATION
Co-operation is the collective bargaining efforts of people who associate voluntarily to achieve
specified objectives. It indicates merely the willingness of individuals to help each others.
Co-ordination is much more inclusive, requiring more than the desire and willingness to cooperate of the participants. It involves the conscious efforts to bring together the activities of
various individuals in order to provide unity of action.
There are some major points of difference between cooperation and coordination. These points
are given as below.
Status-:
Co-operation is the essence of management and it is vital for the success of all managerial
functions. Co-operation does not enjoy the status of essence of management. Co-operation is
no doubt essential for successful co-ordination but it is more of personal attitude rather than
organizational.
Nature of work: In organization the nature of work is such that it needs to be divided and then
integrated. Co-ordination of all activities is utmost necessary but co-operation does not arise
out of any limitations of organization structure.
Deliberate: Co-ordination requires deliberate and intentional efforts of a manager. In other
words, co-ordination is a contrived process On the other hand, co-operation is voluntary. In
other words, co-operation is a natural process.
Scope: Co-ordination is broader in scope than co-operation. It includes both co-operation and
deliberate efforts to maintain unity of action & purpose. Co-ordination is broader in scope than
co-operation.
Co-ordination is the basis of all managerial functions while co-operation is an attitude of an
individuals or group. Need for co-ordination arises due to limitations of formal organization
structure but co-operation is necessary even in case of non-interdependent activities.
Q4. Acceptance Theory
The "acceptance theory" is a philosophy which argues that "authority does not depend as much
on 'persons of authority' who give orders as on the willingness of those who receive the orders
to comply with them.
Acceptance Theory was propounded by the Chestar Barnard. This theory states that authority
is the power that is accepted by others. Formal authority is reduced to normal authority if it is
not accepted by the subordinates. The subordinates accept the authority if the advantages to be
derived by its acceptance exceed the disadvantages resulting from its refusal. The subordinates

give obedience to the managers. According to Barnard, four factors will affect the willingness
of employees to accept authority.

The employees must understand the communication.

The employees accept the communication as being consistent with the organisations
purposes.
The employees feel that their actions will be consistent with the needs and the desires
of the other employees.
The employees feel that they are mentally and physically able to carry out the order.

According to acceptance theory, authority flows from bottom to top. A manager has authority
if he gets obedience from the subordinates. Subordinates obey the manager because of the fear
of losing financial rewards. This theory emphasizes sanctions that a manager can use and
overlooks the influence of social institutions like trade unions.
This idea combines both the traditional approach to management of a "top- down" structure
where subordinates are to comply with the decisions of management. Yet, it is also embracing
a more modern understanding of management, where this compliance is not blind and done
without some level of questioning. If one were to buy the "acceptance theory" of management,
then one also has to accept that subordinates do possess some level of intrinsic power that
requires explanation, articulation, and clear definition of company policies and initiatives. In
the "acceptance theory" model of management, the company's superiors must have a rapport
with their subordinates so that this communication is evident, for their understanding and
willingness to accept decisions, comply with policy, and fulfill management vision is essential.
To accept "acceptance theory," management must "accept" the premise that their workers have
to be "accepted" as beings with their own sense of autonomy, freedom, and reasonability, as
opposed to drones who will blindly follow where the company leads.

SECTION B: CASELETS
1. Critically analyze Vincent's Reasoning
Mr. Vincent the Manager of a large supermarket has been a successful Professional. Vincent
has efficiently involved in planning, organizing and controlling. Planning is a prerequisite of
doing anything. It leads 15 more effective faster achievements in any organizations and
enhances the ability of the organization to adapt to future eventualities. Vincent has adopted
this important principle of determining the objectives of forecasting his business of
supermarket and budgeting. Vincent has also involved in organizing which involves
identification & grouping the activate to be performed and deciding then among the staff and
creating authority and responsibility among then Vincent has Implemented organizing which
contribute to the efficiency of his supermarket. He has organized units in such a way and
delegations it to individuals so that each individual is directly responsible and answerable for
therein respective unit ultimately Mr. Vincent can have a collective control & knowledge of
business in each of his units. Hence organizing contributes to the efficiency of the organization.
Thirdly Mr. Vincent has been implementing controlling which is a success factor where has

been initializing the actual performance versus impacted performance which is nothing but the
measurement & appraisal of activities performed by his (sales) subordinates to meet the plans
of his supermarket. Receivers are conducted to have a check on the sales happening as unpaired
to actual impacted as per the budget plans which gives a clear understanding of how the
organization is progressing towards profit 2 turnovers and eventually programs plan for the
individual appraisal programs. Hence Mr. Vincent is correct in his thought that planning
organizing & controlling.
2. If you were the professor and you knew what was going through Vincents mind, what
would you Say to Vincent?
Considering I was the professor and had I known the thought flow of Mr. Vincent, I would
have explained him the concept and benefits of the other management techniques. I would give
scenario based examples to make him understand the important of all the management
approaches discussed in the lecture. I would also explain him the elevation his career would go
through with the knowledge of these management approaches. I would accept that his idea
about management was correct. But, this is old enough to face todays market competition with
modern technique. I would insist that the modern approach would equip him with the
knowledge of planning, organizing, controlling that are helpful at all stages of management
career. I could also educate about quantitative models, system theory & analysis. Contingency
planning and relationship is also a major need of the business, so that he could implement these
methods in his process of managing his job. He should not only be successful but also his
organization should grow and give good competition to the other organizations around him and
so that he could make good and proper use of his available resources.
CASELET 2
1. Diagnose the problem and enumerate the reasons for the failure of DCuhna?
DCuhna was doomed to fail from the beginning considering that he had inherited an office
which was hastily set up without adequate thought and proper planning. The junior clerical
cadre was manned by female employees who were not adequately trained to handle the job
requirements. There was too much focus on rules and procedures and lack of proper
communication between the clerical cadre and staff employees. Lack of experience among
various employees also left the administrative office struggling with routine jobs which took
exceptionally long time to accomplish. Though DCuhna tried to remedy the situation by giving
classes in communication to the clerical cadre and train them to handle their responsibilities in
a better manner, it was too little, too late.
2. What could DCuhna have done to avoid the situation in which he found himself?
D'Chuna should have investigated the reason for the female clerk submitting nil returns
immediately after knowing it. He could have properly staffed the replacement for the person
on sick leave that could have controller the matter from getting escalated. When the female
staff counter argued with him, He should have taken necessary steps by either consulting higher
authority or emotionally supporting her and understand the cause for her emotional behaviors
could have solved the issue, rather than scolding and firing her. He should have found out the

reason for all the female staff going against him. He should have made the female staffs in the
organization understand the criticality of submitting nil returns and get the work done, rather
than forcefully authoritively demanding the work completion. He should understand that the
team is new and are untrained. He should understand that social support from the manager will
very much help all the staffs in enjoying and completing the work in time.

SECTION C
Q1. Common drawbacks of Classical and Neo Classical Theories of Management
Classical management theory
There are three well-established theories of classical management: Taylor,s Theory of
Scientific Management, Fayols Administrative Theory, Webers Theory of Bureaucracy.
Although these schools, or theories, developed historical sequence, later ideas have not
replaced earlier ones. Instead, each new school has tended to complement or coexist with
previous ones.
Theory recognizing the role that management plays in an organization. The importance of the
function of management was first recognized by French industrialist Henri Fayol in the early
1900s.
In contrast to the purely scientific examination of work and organizations conducted by F W
Taylor, Fayol proposed that any industrial undertaking had six functions: technical;
commercial; financial; security; accounting; and managerial. Of these, he believed the
managerial function, to forecast and plan, to organize, to command, to coordinate, and
control, to be quite distinct from the other five. Fayol also identified general principles of
management: division of work; authority and responsibility; discipline; unity of command;
unity of direction; subordination of individual interest to general interest; remuneration of
personnel; centralization; scalar chain of authority; order; equity; stability of tenure of
personnel; initiative; and esprit de corps. Fayol's views on management remained popular
throughout a large part of the 20th century.
Evolution of Classical Approach to Management
Traditional process of learning is either through observation and experiment. Nature or
environment is considered uniform and when we observe certain phenomenon or events
uniformly leading to the same result or results, we conclude a cause and effect relationship
between the two. This is learning by observation or in other words by experience.
Earlier thinkers on management followed this approach in developing theories of management.
Learning principally is through empirical process and through analysis of the data collected
through observation. Draw the principles of management by looking at and analyzing the jobs
that all managers commonly do. This approach served as a starting point for pioneers on
management science to verify the validity and improve the applicability of the principles and
practices of management. Analysis of observed data is what constitute a case study. The

observational method of case study helps arriving at logical conclusions about past experience
and to test the same as standards for future events.
The German socialists, Max Weber followed the classical approach and developed his theory
of Bureaucracy, which portrays the structure and design of organization characterized by a
hierarchy of authority, formalized rules and regulations that serve to guide the coordinated
functioning of an organization.
Basic Postulates of the Classical Approach by Max Weber
1. Management of an organization is considered as a chain of inter-related functions. The
study of the scope and features of these functions, the sequence through which these
are performed and their inter-relationship leads one to draw principles of management
suitable for universal application
2. Learning principles of management is done through the past experiences of actual
practicing managers
3. As business environment consists of uniform cycles exhibiting an underlying unity of
realities, functions and principles of management derived through process of empirical
reasoning are suitable for universal application
4. Emerging new managers through formal education and case study can develop skill and
competency in management concepts and practices.
5. The classical approach also recognized the importance of economic efficiency and
formal organizational structure as guiding pillars of management effectiveness.
6. Business activity is based on economic benefit. Organizations should therefore control
economic incentives
Neoclassical theory of management
There are 3 neoclassical theories :
Human Relations theory:
Explains the modern advancement of Human Relations Management theory which takes into
account human factors like the employer-employee relationship. Human relations theory is
largely seen to have been born as a result of the Hawthorne experiments which Elton Mayo
conducted at the Western Electrical Company.
The important strand in the development of modern management was the increase in attention
to the human factors, which has become known as the 'human relations school of management.
The core aspect of Human Relations Theory is that, when workers were being observed and
included in the research, they felt more important and valued by the company. As a result, their
productivity levels went up significantly. This represented a significant departure from many
of the classical theories, particularly Fordism, as it went against the notion that management
needed to control workers, and remove their autonomy at every step. Instead, it showed that by
engaging with workers and considering their requirements and needs, companies could benefit
from increased productivity.

Behavioral theory:
The behavioral management theory is often called the human relations movement because it
addresses the human dimension of work. Behavioral theorists believed that a better
understanding of human behavior at work, such as motivation, conflict, expectations, and group
dynamics, improved productivity .
The theorists who contributed to this school viewed employees as individuals, resources, and
assets to be developed and worked with not as machines, as in the past. Several individuals
and experiments contributed to this theory.
Social systems theory:
Developed by Niklas Luhmann is an option for the theoretical foundation of Human Resource
Management (HRM). After clarifying the advantages of using a grand (social) theory as the
basic theoretical perspective, the roots of this social systems theory - the deterministic view of
systems as machines, the open systems approach and non-linear systems theory - are addressed.
Based on the view of social systems as autopoietically closed systems, five major contributions
to a theoretical foundation of HRM are identified: (1) the conceptualization of organizing and
managing human resources as social processes, thus overcoming an individualistic angle; (2)
the new importance of individuals as essential element in the system's environment; (3) the
abstention form far reaching or highly unrealistic assumptions about the 'nature' of human
beings; (4) the interaction between various levels and units of analysis built into the theory
which is essential for comprehensive and in-depth analyses of HR phenomena and (5) the
openness for additional theories for which social systems theory provides the overall
framework.
George Elton Mayo was in charge of certain experiments on human behavior carried out at the
Hawthorne Works of the Western Electric company in Chicago between 1924 and 1927. His
research findings have contributed to organizational development in terms of human relations
and motivation theory.
Elton Mayo's contributions came as part of the Hawthorne studies, a series of experiments that
rigorously applied classical management theory only to reveal its shortcomings. The
Hawthorne experiments consisted of two studies conducted at the Hawthorne Works of the
Western Electric Company in Chicago from 1924 to 1932. The first study was conducted by a
group of engineers seeking to determine the relationship of lighting levels to worker
productivity. Surprisingly enough, they discovered that worker productivity increased as the
lighting levels decreased that is, until the employees were unable to see what they were
doing, after which performance naturally declined.
A few years later, a second group of experiments began. Harvard researchers Mayo and F. J.
Roethlisberger supervised a group of five women in a bank wiring room. They gave the women
special privileges, such as the right to leave their workstations without permission, take rest
periods, enjoy free lunches, and have variations in pay levels and workdays. This experiment
also resulted in significantly increased rates of productivity.

In this case, Mayo and Roethlisberger concluded that the increase in productivity resulted from
the supervisory arrangement rather than the changes in lighting or other associated worker
benefits. Because the experimenters became the primary supervisors of the employees, the
intense interest they displayed for the workers was the basis for the increased motivation and
resulting productivity. Essentially, the experimenters became a part of the study and influenced
its outcome. This is the origin of the term Hawthorne effect, which describes the special
attention researchers give to a study's subjects and the impact that attention has on the study's
findings.
(1) Both theories were based on certain assumptions and in both cases assumptions were found
unrealistic and not applicable to the organizations at a later date
(2) Both theories had limited applicability and were not universal in their approach. With the
changing times several other sectors had cropped up and dynamics and working conditions
were changing, whereas both the theories were based primarily on manufacturing sector.
(3) Though both the theories were based on human aspect and laid emphasis on it they failed
to take into account all the aspects of the human behavior
(4) Both the theories took a rigid and static view of the organization, whereas an organization
is not static but dynamic
Many management Gurus believe that neo classical theory is just a slight extension of the
classical theory with slight modifications and its bankrupt, because it suggests nothing new.

Q2. What is training and different types of training?

Training is 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.
Training has specific goals of improving one's capability, capacity, productivity and
performance. It forms the core of apprenticeships and provides the backbone of content.
Different methods of training
A) On the Job Training Methods
On the job training methods are by far the most commonly used in training for all levels of
personnel. The object of on the job training is to bring the employees to at least a minimum
acceptable standard of performance in the shortest possible lime. The worker by these methods
learns to master the operations involved on the actual job situation under the supervision of his
immediate loss who has to carry the primary burden of conducting this training. Various
methods of on the job training are as follows-:
(1) On specific Jobthe most common or formal on the job training program is training
for specific job. Current practice in job training has been strongly influenced by the war
time training within industry which was first designed to improve the job performance
through job instruction training. There are following methods of training :

Experiencethis is the oldest method of on-the- job training. But as a sole approach,
it is wasteful, time consuming and inefficient. It has been observed that it should be
followed by other training methods to make it more effective. In a survey, it was found
that they kept up to date through a variety of activities which were largely unrelated to
formal continuing education courses. On the job, problem-solving and colleague
interactions were prompted as being most important for professional growth by 62 per
cent respondents.
Coaching-On-the-job coaching by a superior is an important and potentially effective
approach if superior is properly trained and oriented. The technique involves direct
personnel instruction and guidance, usually, with extensive demonstration and
continuous critical evaluation and correction. The advantage is increased motivation
for the trainee and the minimization of the problem of learning transfer from theory to
practice. The danger in this method lies in the possible neglect of coaching by superior
Understudythe understudy method is considered a somewhat different approach from
those described above, that a certain person is specifically designated as the heirapparent. The understudy method makes the trainee an assistant to the current job
holder. The trainee learns by experience, observation and imitation. If decisions are
discussed with the under study, he can become informed the policies and theories
involved. The advantage of this method is that training is conducted in a practical and
realistic situation. However disadvantages are many. The method tends to perpetuate
mistakes and deficiencies of existing managerial practices. Moreover, the understudies
are frequently neglected by those they assist.
(2) Position Rotationthe major objective of job rotation training is the broadening of the
background of trainee in the organization. If trainee is rotated periodically from one job
to another job, he acquires a general background. The main advantages are: it provides
a general background to the trainee, training takes place in actual situation, competition
can be stimulated among the rotating trainees, and it stimulates a more co-operative
attitude by exposing a man to other fellow's problems and viewpoints. There are certain
disadvantages of this method. The productive work can suffer because of the obvious
disruption caused by such changes. Rotations become less useful as specialization
proceeds, for few people have the breadth of technical knowledge and skills to move
from one functional area to another.
(3) Special Projectsthis is a very flexible training device. Such special project
assignments grow ordinarily out of an individual analysis of weaknesses. The trainee
may be asked to perform special assignment; thereby he learns the work procedure.
Sometime a task force is created consisting of a number of trainees representing
different functions in the organization. Trainees not only acquire knowledge about the
assigned activities, but also learn how to work with others.
(4) Selective ReadingIndividuals in the organization can gather and advance their
knowledge and background through selective reading. The reading may include
professional journals and books. Various business organizations maintain libraries for
their own executives. Many executives become members of professional associations

and they exchange their ideas with others. This is a good method for assimilating
knowledge; however, some executives claim that it is very difficult to find time to do
much reading other than absolutely required in the performance of their jobs.
(5) ApprenticeshipApprentice training can be traced back to medieval times when those
intended on learning trade skill bound themselves to a master craftsman to learn by
doing the work under his guidance. In earlier periods, apprenticeship was not restricted
to artisans, but was used in training for the professions, including medicine, law,
dentistry, and teaching. Today's industrial organizations require large number of skilled
craftsmen who can be trained by this system. Such training is either provided by the
organizations or it is also imparted by governmental agencies. Most States now have
apprenticeship laws with supervised plans for such training. Arrangements usually
provide a mixed program of classroom and job experience.
(6) Vestibule Schoolslarge organizations frequently provided what are described as
vestibule schools, a preliminary to actual shop experience. As far as possible, shop
conditions are duplicated, but instructive, not output, and are major objective, with
special instructors provided. Vestibule schools are widely used in training for clerical
and office jobs as well as for factory production jobs. Such training is usually shorter
and less complex than that adaptable to the apprenticeship system. Vestibule training is
relatively expensive, but these costs are justified if the volume of training is large, or if
uniform, high-standard results are important.

Off-the-job Training Methods

In these methods, trainees have to leave their workplace and devote their entire time to the
development objective. In these methods development of trainees is primary and any usable
work produced during training is secondary. Following training techniques are used off-thejob:
.1Special course and lectureslecturing is the most traditional form of formal training method.
Special courses and lectures can be established by business organizations in numerous ways as
a part of their development program. First, there are courses which the organizations
themselves establish to be taught by members of the organization. Some organizations have
regular instructors assigned to their training and development departments such as Tata and
Hindustan Lever in private sector, Life Insurance Corporation, State Bank of India and other
nationalized commercial banks, Reserve Bank, Hindustan Steel, Fertilizer Corporation and
many others in public sector. A second approach to special courses and lectures is for
organizations to work with universities or institutes in establishing a course or series of %
courses to be taught by instructors of these institutes. A third approach is for the organizations
to send personnel to program established by the universities, institutes and other bodies, Such
courses are organized for a short period ranging from 2-3 days to a few weeks. The first such
program was the Sloan Fellowship Program, established in 1931 at Massachusetts Institute of
Technology, U.S.A. In India, such courses are organized frequently by the Institute of
Management, Administrative Staff College of India, National Productivity Council, NITIE, All
India Management Association and some other organizations and universities, .

.2Conferences -This is also an old method, but still a favorite training method. In order to
escape the limitations of straight lecturing many organizations have adopted guided-discussion
type of conferences in their training program In this method, the participants pool their ideas
and experience in attempting to arrive at improved methods of dealing with the problems which
are common subject of discussion) Conferences may include buzz sessions that divide
conferences into small groups of four or five for intensive discussion. These small groups then
report back to the whole conference with their conclusions or questions. Conference method
allows the trainees to look at the problem from a broader angle. These conferences, however,
have certain limitations. Unless the discussion is directed to the fell needs of the participants
that may well feel that the whole session is useless.

.3Case studiesthis technique, which has been developed and popularized by the Harvard
Business School, U.S.A. is one of the most common form of training. A case is a written
account of a trained reporter or analyst seeking to describe an actual situation. Some cases are
merely illustrative, others are detailed and comprehensive demanding extensive and intensive
analytical ability. Cases are widely used in a variety of program) This method increases the
trainee's power of observation, helping him to ask better questions and to look for a broader
range of problems. A well-chosen case may promote objective discussion, but the lack of
emotional involvement may make it difficult to effect any basic change in the behavior and
attitude of trainees.
.4Brainstormingthis is the method of stimulating trainees to creative thinking. This approach
developed by Alex Osborn seeks to reduce inhibiting forces by providing for a maximum of
group participation and a minimum of criticism, A problem is posed and ideas are invited.
Quantity rather than quality is the primary objective; Ideas are encouraged and criticism of any
idea is discouraged. Chain reactions from idea to idea often develop. Later, these ideas are
critically examined. There is no trainer in brainstorming and it has been found that the
introduction of known experts into it will reduce the originality and practicability of the group
contributions. Brainstorming frankly favors divergence, and this fact may be sufficient to
explain why brainstorming is so little used as yet in developing countries where new solutions
ought to carry the highest premium. It is virtually untried even though its immediate use is
limited to new ideas only, not change in behavior.
.5Laboratory Training-Laboratory training adds to conventional training by providing
situations in which the trainees themselves experience through their own interaction some of
the conditions they are talking about. In this way, they more or less experiment on themselves.
Laboratory training is more concerned about changing individual behavior and attitude. It is
generally more successful in changing job performance than conventional training methods.
There are two methods of laboratory trainingsimulation and sensitivity training.
A. SimulationAn increasingly popular technique of management development is simulation
of performance. In this method, instead of taking participants into the field can be simulated in
the training session itself. Simulation is the presentation of real situation of organizations in

the training session. It covers situations of varying complexities and roles for the participants.
It creates a whole field organization, relates participants through key roles in it, and has them
deal with specific situations of a kind they encounter in real life. There are two common
simulation methods of training: role-playing is one and business game is the other.
)i) Role-PlayingRole-Playing is laboratory method which can be used rather easily as a
supplement to conventional training methods. Its purpose is to increase the trainee's skill in
dealing with other people. One of its greatest uses is in connection with human relations
training but it is also used in sales training as well. It is spontaneous acting of a realistic
situation involving two or more persons under class room situations. Dialogue spontaneously
grows out of the situation, as it is developed by the trainees assigned to it. Other trainees in the
group serve as observers or critics. Since people lake roles every day, they are somewhat
experienced in the art, and with a certain amount of imagination they can project themselves
into roles other than their own. Since a manager is regularly acting roles in his relationship with
others, it is essential for him to have role awareness and to do role thinking so that he can size
up each relationship and develop the most effective interaction possible. Role-playing has
many advantages. By this method, a trainee can broaden his experience by trying different
approaches, while in actual situation; he often has only one chance. In evaluation of roleplaying in sue firms, it was found that such sessions resulted in an increase in sensitivity and
improved quality of actions of a work sample involving a human relations difficulty. Roleplaying also has weaknesses which partly offset its values. It is time consuming and expensive.
It requires experienced trainers because it can easily turn sour without effective direction.
)ii) GamingGaming has been devised to simulate the problems of running a company or even
a particular department. It has been used for a variety of training objectives, from investment
strategy, collective bargaining techniques, to the morale of clerical personnel. It has been used
at all levels, from the lop executives to the production supervisors. Gaming is a laboratory
method in which role-playing exists but its difference is that it focuses attention on
administrative problems, while role-playing tends to emphasize mostly feeling and tone
between people in interaction. Gaming involves several teams, each of which is given a firm
to operate for a number of periods. Usually the period is a short one, one year or so. In each
period, each team makes decisions on various matters such as fixation of price, level of
production, inventory level, and so forth'. Since each team is competing with others, each firm's
decisions will affect the results of all others. All the firm's decisions are fed into a computer
which is programmed to behave somewhat like a real market. The computer provides the
results, and the winner is the team which has accumulated largest profit. In the light of such
results, strengths and weaknesses of decisions are analyzed.

B. Sensitivity TrainingSensitivity training is the most controversial laboratory training

method. Many of its advocates have an almost religious zeal in their enhancement with the
training group experience. As a result of criticism and experience, a somewhat revised
approach, often described as 'team development' training, has appeared. It was first used by
National Training Laboratories at Bethel, U.S.A. The training groups themselves called 'T
Group'. Since then its use has been extended to other organizations, universities, and institutes.

Sensitivity training is a small-group interaction under stress in an unstructured encounter group

which requires people to become sensitive to one another's feelings in order to develop
reasonable group activity T-group has several characteristic features: (i) the T-group is
generally small, from ten to twenty members; (ii) the group begins its activity with no formal
agenda; (iii) the role of trainer is primarily to call attention from time to time to the ongoing
process within the group; (iv) the procedure tends to develop inter-section and selfexamination, with emotional levels of involvement and behavior and the possibility of
colleagues and some breakdown of established insulation and self-defense on the part of
individuals. The objectives of such training are increased openness with others, more concern
for others, increased tolerance for individual differences, less ethnic prejudice, understanding
of a group process, enhanced listening skills, and increased trust and support.