Organisational Structure

 An organizational structure is a system that outlines how certain activities are directed
in order to achieve the goals of an organization. These activities can include rules,
roles, and responsibilities.
 It is an internal, formal framework of a business that shows the way in which
management is organised and linked together and how authority is passed through the
organisation.
 Organizational structure is a system used to define a hierarchy within an organization.
 The structure is illustrated using an organizational chart.

An organisational structure shows the following:

1. Chain of command
2. The span of control
3. Channels of communication
4. The hierarchy of decision-making
5. The authority
6. Delegation of authority

Importance of an organisational structure

It allows for better communication

 An organizational structure should be designed to with clear lines of communication

in mind. For example, the financial planning and analysis department might report to
the Chief Financial Officer (because he is a member of top management team who
depends on information and reports provided by financial planning.)

Clear reporting relationships

 Reporting relationships must be clear so all members of the organization understand

what their responsibilities are and know to whom they are accountable; otherwise,
 responsibility for a task may fall through the cracks. These clear relationships make it
easier for managers to supervise those in lower organization levels.
 In addition, managers are aware of who is outside the scope of their authority, so they
do not overstep their bounds and interfere with another manager’s responsibilities.

It facilitates efficient completion of tasks

 A well-designed organization structure facilitates the completion of projects. Project

managers can better identify the human resources available to them if the scope of
each department’s responsibility – and each team member’s capabilities – are clear. A
project to develop a new product would require market research, for instance.

Enables optimum use of human resources

 Sound organisation matches the jobs with the individuals and vice-versa. It ensures
that every individual is placed on the job for which he is best suited. This helps in the
better use of individuals working in the enterprise.

It facilitates training and development

 An effective organisation facilitates delegation of authority which is an important

device for training and developing the personnel. Delegation of authority is also an
important means of directing the subordinates. It prepares them to take more
responsibilities whenever need arises.

It ensures co-ordination and communication among the various departments of a company

 Organizational structure helps in grouping activities and people and so it facilitates

communication between people centred as their job activities. The sharing of
information helps person in solving their joint problems.

NB: An organisation can be a formal structure or an informal structure.

Formal organisation
  A formal organization is a group of people who have a formal relationship, written
policies and rules and an aim to achieve a common goal.
 It is an organisation where employees are guided by rules, policies, and procedures,
and the structure of jobs and positions of employees are clearly defined for achieving
smooth functioning of the organisation.
 Hospitals, churches, schools, and businesses are instances of formal organisations

Features of formal organisation

 A formal organization has a definite and mutual relationship among the employees.
Every employee knows who has to report to whom.
 A formal organization has rules and regulations that have to be followed by all the
employees. The goals are achieved efficiently if one follows the rules and regulations.
 There are different departments working in the organization. Thus, the division of
work is done for working smoothly and swiftly.
 A formal organization is stable in its work. It is deliberately made, and several rules
are set to achieve the organization's objectives.

Informal organisation

 Can be defined as an organizational structure without written guidelines for operating

but is based on norms and systems developed by members.
 It is a system of interpersonal relationships between individuals working in an
enterprise, that is formed as a result of people meeting, interacting and associating
with one another.
 Clubs and social networks are two significant examples of informal organisations.

Features of informal organisations

 It emerges from personal relationships and social interactions in the workplace.

 An informal organization has no rules or regulations. It is spontaneously made based
on the personal interactions of people.
  An informal organization has independent channels of communication. There is no
official way of passing on information. Thus, grapevine communication is followed in
an informal organization.
 Members may not have a written vision and mission as the company does.
 Group leaders, called informal leaders, often result from personal characteristics, not
official appointments. They have the power to lead and direct members toward a
common goal, even without an official leadership title
 There is no stability in an informal organization. An individual can be a member of
another organization or group, which makes this organization unstable.

Difference between formal and informal organisations

The key differences between formal and informal organisations include the following:

Authority

 Formal organizations have clear and documented hierarchies of leadership. Authority

is appointed from upper levels of the hierarchy, such as management. For example,
only management usually holds the authority to hire or fire employees.
 In informal organizations, there is less emphasis on established authorities or multiple
levels of hierarchy. Rather, authority is equal among all members. An example would
be a book club where members are all equal because they are not pursuing a goal that
would require authority.

Structure

 Formal organizations are very structured in order to reach stated goals. There are
established laws and rules that govern labour and norms within a formal organization.
An organizational chart would be an example of documented structure.
 Informal organizations often are not very structured because their goals might be
temporary or entirely social. There is no need for the extensive requirements of a
formal organization.

Influence
  Formal organizations rely on status through predetermined authority roles for
influence. There is a clear flow of influence through a formal organization. For
example, a subordinate employee would not hold the same influence as a manager
within a company.
 Informal organizations tend to have more subtle norms that are expressed through
customs, morals or beliefs that are often not written. Members are not pressured to
perform by superiors. Members of an informal organization mostly have equal
influence.

Communications

 Formal organizations may have rules regarding the flow of information and
communication. The chain of command will determine how members communicate..
Often, information flows from leadership down to other members.
 Informal organizations do not have specific guidelines for communication. All
members are able to interact with each other without considering hierarchy. An
example might be a musical group where members do not need to inform a specific
leader when they will be absent from a performance.

Purpose

 Formal organizations are formed to serve a specific purpose or meet set goals. There
is a constitution or plan and extensive guidelines directing the organization toward its
purpose. Leadership will regularly review how well goals are being met and plan
accordingly
 Informal organizations serve the needs of individuals and can be created
spontaneously with a purpose that is not well-defined. Goals are not always clear
because informal organizations primarily serve social requirements for members.

Importance of informal organisations

 Fast communication – Communication does not follow a chain of command. Instead,

flows in any direction. Thus, it can be much faster than can be done in a formal
organization.
  It satisfies the social needs of employees – e.g. belonging needs. The individuals do
feel that there are others in the organisation that can take care for them and who have
got more concern towards compared to the management.
 Has a positive influence on productivity and job satisfaction
 Helps in the fulfilment of organisational objectives – It helps in achieving
organisational objectives by compensating the limitations of the formal structure.
 Greater focus on individuals – Members of informal organizations in their workplaces
can have greater opportunities to find emotional support, encouragement from their
peers and build relationships with other members in the group. This atmosphere
creates a positive culture where members encourage creativity, inclusion and open
communication.

Limitations of informal organisations

 Resistance to change – It is very difficult for management to bring changes in the

organisation if the informal organisation opposes them. Such resistance may restrict
growth of the organisation.
 It creates negative information – Rumours and misleading information often spread
more quickly through informal organizational structures.
 Unsystematic work – There is no official structure. The organization does not divide
the roles, authorities, responsibilities, and duties into several units. Thus, it is more
uncoordinated.
 Interpersonal and group conflicts are common – The incompatibility often arises
between members and against other organizational groups. It can worsen
interpersonal relationships, resulting in chaos within the company.

Organisational chart

 An organisational chart is a graphical representation that shows the internal structure

of an organisation or a company
 It is a diagram that visually conveys a company’s internal structure by detailing the
roles, responsibilities and relationships between individuals within a company or an
entity.
  It shows us how management organizes and links the various jobs and departments
within a company.
 It is also referred to as organogram
 An example of an organisational chart is given below:

Features of an organisational chart

 The various features of an organisational chart include span of control, chain of

command, authority, delegation, and centralisation

Span of control

 It refers to the number of employees that can be managed effectively and efficiently
by a supervisors or a managers in an organisation
  It can be defined as the number of subordinates reporting directly to a manager.
 An organisational structure can have a wide/large span of control or a narrow/smaller
span of control
 The more employees a manager supervises, the wider the span of control and vice
versa

Note: Flat organisations (with fewer levels of hierarchy) have a wide span of control. On the
other hand, tall organisations have a narrow span of control.

Advantages of narrow span of control

 Creates more development, growth and advancement opportunities

 More and better opportunities for employee promotion
 Groups are smaller and easier to control – it helps managers to effectively complete
their managerial tasks
 Closer supervision and greater attention to the needs of the employee from the
manager
 More rapid communication between small teams
 Less skill is required when compared with managing a large group of employees

Disadvantages of a narrow span of control

 More supervisory involvement in work could lead to less empowerment and

delegation, as well as more micromanagement
 Can result in communication difficulties due to excessive distance between the top
and bottom levels of management. It is also due to more managers on the chain of
command
 Communication can take too long, thereby hampering decision-making
 Can result in demotivation among the employees – due to constant
supervision/micromanagement
 High costs to the company – due to more company managers that will need higher
salaries and benefits costs

Advantages of a wide span of control

  Encourages empowerment of employees by giving more responsibility, and decision-
making power to them
 It encourages delegation – managers must delegate in order to handle large numbers
of employees
 Reduction in company costs – it is cost-effective because of fewer managers and
levels of hierarchy
 Faster decision-making – because of fewer levels of hierarchy
 Improved communications between managers and employees.
 More freedom for employees due to less close supervision. It helps to prevent
micromanagement
 Higher motivation of employees

Disadvantages of a wide span of control

 May lead to overload of work on supervisors if employees require much task

direction, support and supervision
 Fewer promotion opportunities for employees
 Poor performance due to little supervision on employees
 Poor discipline among the employees due to much autonomy
 Less effective communication – due to managers who need to convey information to a
lot of people. Not all employees may understand, and each may need his/her own
interpretation
 Loss of control by the management

Chain of command

 Refers to the route through which authority is passed down an organisation – from the
chief executive and the board of directors.
 It refers to a series of positions of authority or rank within an organisation that are
ordered from the lowest to the highest
 Can be viewed as a channel in which communication, coordination, and control flow
through the various levels of management to subordinates
 It shows the rank of employees at different levels. This helps employees to understand
their responsibilities and act accordingly
  The longer the chain of command, the narrower the span of control and vice versa
 It helps in creating clarity and accountability
 It helps in standardizing communication within an organisation

Centralisation

 It refers to consolidating all planning and decision-making powers to one leader or

place within an organisation.
 In other words, it refers to the process in which all activities involving planning and
decision-making are concentrated to a specific leader location in an organisation.
 The decision-making powers are usually retained in the head office, and all other
offices receive commands from the head office
 The executives and specialists who make critical decisions are based in the head
office

Advantages of centralisation

 A centralised organisation has a clear chain of command.

 Reduction in costs of the company e.g. office and administration costs
 Quick implementation of decisions
 It leads to improvement in the quality of work
 Employees have well-defined roles and responsibilities

Disadvantages of centralisation

 It resembles a form of bureaucratic leadership

 Lack of employee morale
 Centralisation can stifle creativity
 May result in delays at work
 May result in poor implementation of decisions

Decentralisation
  It refers to a specific form of organisational structure where top management
delegates decision-making responsibilities and daily operations middle and lower
subordinates
 It refers to the dissemination of powers, functions and responsibilities away from the
central location
 It reduces the extent of direct supervision over subordinates
 It builds strong relationship between superiors and subordinates

Approaches to organisational structures

The various approaches to organisational structures include the following:

1 Functional organisational structure

 A functional organizational structure is a common type of business structure that

organizes a company into different departments based on areas of expertise, grouping
employees by specialty, skill or related roles.
 It’s based on levels of hierarchy that include different departments, under the
direction of designated leaders.
 Examples of departments in a company include finance, marketing, production,
human resources, information technology, engineering etc

Features of a functional organisational structure

 A functional organization is a vertical hierarchy.

 The company is divided into different functional departments with employees who
specialize in specific tasks.
 Functional departments usually operate in silos because each group has its own
independent vertical management structure.
 Employees report to a manager who oversees their department.
 Employees within each department typically only communicate with each other,
rather than dealing with workers in other departments.
 Managers typically report to another functional leadership role.
  Managers are responsible for coordinating with other managers of other departments.

Advantages of a functional organisational structure

 It leads to improved productivity – People in a functional structure setting have

specialized skills that allow them to work more quickly and efficiently than those who
may be unfamiliar with specific subjects, which leads to greater productivity.
 It promotes operational clarity in the company – Segregating the workforce according
to function clarifies organizational responsibility and allocation of tasks.
 It leads to minimised costs of operation – Giving tasks to individuals with the right
skills also saves money because work gets performed more efficiently.
 It promotes specialisation – Every functional in charge is an expert in his area and can
help the subordinate to perform better in his area.
 Greater skills development among the employees - People with similar skills and
knowledge work together and perform similar functions, which allows their skills to
be further developed.
 It ensures accountability – Clear management lines allow each position to be
responsible for its functional area.

Disadvantages of functional structure

 Boredom and job dissatisfaction

 May result in conflicts among the departments
 May result in poor coordination among the departments - Each department might be
more concerned with the ego and its functional area. Eventually, it leads to poor
coordination.
 May result in organisational silos – Each department operates independently. Thus,
people in one department are reluctant to share information or knowledge with people
in other departments.
 Poor communication among the departments – If employees and management are
only loyal to their teams, there will be a lack of teamwork and coordination.
 May result in poor corporation among the departments

2. Divisional organisational structure

 A divisional organizational structure is a system in which a company segments its
employees based on products or markets, as opposed to their job roles.
 Each division has the same organizational structure
 Each division have its own advertising, sales, production, clerical, accounting, and
development staff.
 A divisional structure enables the evaluation of staff and divisional performances and
base their compensations on their success rate.
 The approach is useful when decision-making should be clustered at the division level
to react more quickly to local conditions.
 Examples of companies with a divisional structure include McDonald’s Corporation
and PepsiCo Inc.
 McDonald has separate divisions such as US, International lead markets (such as
Europe, high growth markets (such as Asia), foundation markets such as Africa.
PepsiCo has divisional structure based on product and geography such as PepsiCo
Beverages North America, Quaker Foods North America, AMESA (Africa, Middle
East, South Asia, Europe etc
 A typical example of a divisional structure is shown below:
Advantages of a divisional structure

 It promotes decentralisation of power and authority

 It promotes accountability and responsibility among the divisions – e.g. it can easily
be seen which division is successful in making profits while which are bearing losses.
 It promotes specialisation within each division
 It promotes efficiency within each division
 It promotes delegation within the company
 Quicker response to changes in the market environment
 Facilitates quicker execution of tasks by divisional employees

Disadvantages of divisional structure

 Can be very costly to develop and implement due to the high number of experts
required.
 Misuse of power by divisional leaders due to autonomy
 Duplication of roles may happen in different divisions
 The structure can create fierce and unhealthy competition as each division tries to
outperform the other.
 May result in bloated workforce
 There is an uneven distribution of resources since different divisions have different
requirements that help them promote their products or services.
 May result in micromanagement of employees – The divisions have a smaller
population, which makes supervision and monitoring frequent and better.

Matrix organisational structure

 The matrix organizational structure is a combination of two or more different kinds

of organizational structures, such as project management or functional management.
 It is composed of both a traditional hierarchy of management, where employees are
managed by a functional manager, as well as additional project managers who can
 manage employees across different departments. These two or more managerial
systems intersect on a grid or matrix.
 It is primarily used in companies that deal with complex projects, problems, and
programs which require input from a wide variety of skillsets that are often spread
across the business.
 An example of a matrix organisational structure is shown below:

Advantages of matrix structure

 Improved communication in the business

 It facilitates professional development of employees through exposure to multiple
project types and ways of thinking.
 It strengthens job security within the organisation e.g., at the end of the project, there
are no doubts about job stability or looking for new work as a contractor.
 Can result in low labour costs since employees are given more tasks instead of hiring
new people.
 Effective flow of information in the company – Information about projects flows
across business functions through cross-functional teams and is not locked in the
hands of the project manager and his team.
  It leads to the development of flexible human resources
 It facilitates the easy sharing of resources in different divisions – a company can shift
between the needs of the various projects under development and the company’s
functional units.

Disadvantages of the matrix structure

 The employees may experience heavy workloads

 Possible conflicts between the functional managers and project managers
 Can result in higher costs to the company – e.g. providing employees with generous
compensation packages to encourage and motivate them to carry out work for projects
and functional areas.
 Both managers must be on the same page for it to be an effective structure.
 Ambiguity surrounding roles and responsibilities – this can create confusion around
both manager and employee roles and responsibilities
 Slower decision –making – A matrix structure means that rather than one manager
weighing in on a task or issue, there are two or more. This can mean that decision
making can take longer, especially if there are any conflicts between these managers
and they have difficulty reaching an agreement.
 Problem with resource allocation e.g., talented employees. The reality is that
managers often keep their most talented employees confined so they cannot work for
other teams

Human Resource Management (HRM)

 HRM refers to a strategic approach to acquiring, developing, managing, motivating

and gaining the commitment of the organization’s key resource – the people who
work in and for it.
 It is a management function that is concerned with hiring, motivating, and
maintaining the workforce in an organization.
 HRM deals with issues related to employees such as hiring, training, development,
compensation, motivation, communication, and administration.
  HRM ensures the satisfaction of employees and a maximum contribution of
employees to the achievement of organizational objectives.

Functions of human resource management

1. Human resource planning

 Resource planning is important because it ensures that an organization has the

necessary resources to complete its objectives. This function of HRM (Human
Resource Management) determines the number and type of employees required to
accomplish a specific set of goals and tasks. It also forecasts the future requirements
of organizations and helps in aligning the hiring process accordingly.

2. Job design and job analysis

 One of the important functions of HRM is job design and job analysis. Job design
involves the process of describing duties, responsibilities and operations of the job. To
hire the right employees based on rationality and research, it is imperative to identify
the traits of an ideal candidate who would be suitable for the job.
 Job analysis involves describing the job requirements, such as skills, qualification and
work experience. The vital day-to-day functions need to be identified and described in
detail, as they will decide the future course of action while recruiting.

3. Recruitment and selection

 Hiring suitable candidates for the organization is one of the prime tasks of Human
Resource Management. The human resource team is responsible for attracting people
to work for the organization.
 Recruitment plays an important role as it decides the talent that is going to be
instrumental in driving the success of an organization.

NB: Recruitment can be internal external

The advantages of internal recruitment includes

  applicants may already be known to the selection team
 applicants will already know the organisation and its internal methods – no need for
induction training
 often quicker than external recruitment
 likely to be cheaper than using external advertising and recruitment agencies
 culture of the organisation will be well understood by the applicants

The advantages of external recruitment include the following:

 external applicants will bring in new ideas and practices to the business – this helps to
keep existing staff focused on the future rather than ‘the ways things have always
been done’
 should be a wide choice of potential applicants – not just limited to internal staff
 avoids resentment sometimes felt by existing staff if one of their colleagues is
promoted above them
 standard of applicants could be higher than if just limited to internal staff applicants

4 Employee performance management

 Effective performance management ensures that the output of the employees meets
the goals and objective of the organisation. It also focuses on the performance of the
team, the department, and the organisation as a whole.
 Sound leadership, constructive feedback, and clear communication are all signs of
effective performance management. Also, performance management helps in ensuring
that the workforce stays productive and engaged.
 There are various modes available to do this function that includes bi-annual reviews,
manager reviews, peer feedback, and sometimes even customer feedback are
considered.

5. Training and development

  Helping the employees to develop future-ready skills and knowledge is an important
responsibility and is the fundamental function of Human Resource Management. It is
beneficial to the organization if the employees are to be hand-in-glove with the latest
technologies and skills of the era, as various projects require vision and skills of the
future.

6. Remuneration (compensation and benefits)

 Compensation and benefits form the primary part of the total cost expenditure of an
organization. To balance the scale, the Human Resource Management professionals
must formulate attractive, and yet efficient compensation and benefits packages to
attract more employees and at the same time not affect the finances of the company.
 The primary objective of this Human Resource Management function is to provide
fair and equitable compensation to all employees.

7. Health and safety (creating a safe working environment)

 HR is responsible for protecting employees’ safety at work—both physical and

emotional. In the physical sense, HR must ensure the workplace is free of danger,
typically through worksite analysis and hazard prevention and control.
 Workplace safety also entails ensuring that the organization acts in accordance with
federal and state employment rules and regulations. HR departments have a
responsibility to maintain work environments that promote respect and dignity for all
employees.

8. Employee personal support

 The human resource team also assists employees when they run into personal
problems. The need for employee support and assistance has exponentially increased
during pandemic times, and leaving it unattended can affect workflow and
productivity. Hence, this function of Human Resource Management ensures that
employees get extra help e.g., medical assistance if and when they need it. The
assistance can be in the form of extra leaves, insurance, counselling, etc.
9. Compliance with rules and regulations

 As an HR professional, seeing that an organization is complying with labour laws is

one of the crucial functions of HR. The HR management department understands
these legal concerns and ensures that the employee and the organization are protected.
Compliance comprises the estimation of leave, payroll legalization, govt. and tax
reporting, etc.

Training and development

 Training and development are two different programs used in human resource
management to equip employees with skills and knowledge to handle various tasks.

Training

 Training is a short-term process by which non-managerial personnel learn technical

knowledge and skills for a definite purpose
 Training is often referred to as importing specific skills and behaviour.
 The specificity is in terms of learning a specific course content or skill such as a
computer language, machine operations, etc.
 Training practices are mostly done to new employees so, that they can familiarize
themselves with the operations of the entity.

Development

 The term ‘development’ is a long-term process by which managerial personnel learn

conceptual and theoretical knowledge for a general purpose.
 It is a sort of educational process which focuses on the growth and maturity of the
managerial personnel.
 Development aims at overall personality development.
 The content of a development programme includes conceptual or theoretical inputs,
perspective strategic thinking or focusing on behavioural aspects such as leadership
skills, managing teams, groups, etc.
  Development is undertaken to help individual employees within the premises of the
organization to have management skills after proving themselves at junior levels

Difference between training and development

The differences between training and development are discussed below:

Aims and objectives of training and development

 The primary difference between training and development is that training aims to
ensure that employees of the organization are equipped with skills and knowledge so
that they can be able to handle specific jobs in the company. In development,
individuals are equipped with skills and knowledge so, that they can develop a
conceptual framework and general understanding of operations of the company.

Orientation in training and development

 An individual is required to undergo training so that he or she can be able to perform

a specific job in the organization. New employees in the business are subjected to
training programs to expose them to their new roles.
 On the other hand, development is career oriented and works to help the individual
master in a particular field. For example, an individual will be developed to master
accounting concepts, so that he or she can undertake accounting duties at management
level.

Focus on training and development

 The focus of training is to help individuals in the organization be able to handle

specific tasks within the organization. This means that training is geared towards
ensuring that individuals can handle immediate tasks in the company.
 On the other hand, development is geared towards ensuring that the people under the
program are in a position of handling future tasks when they arise.

Terms in training and development

  The period for training and development is different. Training takes a shorter period
because fewer skills are gained. People in training are only taught to handle a specific
duty and are required to execute the skills acquired immediately.
 Development is a gradual process, which is done in long-term. This is because
development involves understanding the operations. A person under the development
program is always learning on how to improve specific aspects of the organization to
enhance its activities.

Group vs. Individual

 Training is a program designed by the Organization. An expert in the concerned field

is hired to conduct training. For instance, training courses decide what sort of tools
should be used, set guidelines to follow by employees during training activities.
Training is usually provided in a group.
 Development programs are personalized, the person who is ultimately responsible is
the employee. The most critical focus is not on lessons taught by a tutor, but instead
of the self-learning process and progress that must be taken on by the professional.

Different methods of training

 The various methods of training include induction, on-the-job training, and off-the-job
training

Induction training

 An employee induction program is a process that an organization takes to introduce

new employees into its system and get them prepared for their new job.
 It has the objectives of introducing them to the people that they will be working with
most closely, explaining the internal organisational structure, outlining the layout of
the premises and making clear essential health and safety issues, such as procedures
during a fire emergency.

Benefits of induction training

  Introduces an employee to the company’s culture - Introducing this culture to new
employees early on helps them to understand, embrace, and take part in this company
culture. This creates a more uniform organizational structure.
 It saves time and money – The induction process is all about making sure that new
employees are equipped with all of the resources and knowledge they need to succeed
in their roles. It boosts the overall performance of the employee. This improved
quality of work can save a business significant time and money.
 It ensures consistency for all the employees – Introducing a successful induction
program for every new team member allows each new person to start their job with
the same knowledge, systems, and information as everyone else.
 It improves employee retention – An effective induction program will help new
employees to fit into their new surroundings, be well-acquainted with the policies and
procedures of the company. This will help them to feel supported and enjoy a smooth
transition into their new role.
 Improves employee performance – An employee induction program is not only for
the well-being of the new hires. Employee induction processes also provides all of the
essential training and information that employees need to boost their performance.
 It makes new employees feel comfortable and confident – An employee induction
program helps new employees learn faster, and gives them more confidence.

On-the-job training

 It refers to a practical approach to acquiring new competencies and skills needed for a
job in a real, or close to real, working environment.
 Employees learn about the job by doing it
 This training happens at the workplace, with guidance from a supervisor, manager, or
another knowledgeable employee.
 On-the-job training can be imparted by the following methods:

1. Coaching

 Coaching is also defined as learning by doing and handling various ongoing projects.
  In this method of training, team manager assigns certain job responsibilities to team
members, monitors their performance, points out their mistakes, provides them
feedbacks and also suggestions for improvement.

2. Job rotation

 In this type of training, employees move from one position to another, thus acquiring
new skills and learnings.
 Job rotation acquaints individuals with newer roles and challenges and makes them
capable of performing any type of task.

Importance of on-the-job training

 Faster training of employees with real experience – People quickly learn what they
need to do and perform their job on a good or acceptable level when compared with
traditional training.
 Faster adaptation to a new job This type of training can help with faster
onboarding and getting an acceptable level of performance.
 It is an economical method of trading – The training is conducted in the workplace
by actually performing the jobs. It does not need extra space, materials, resources and
time for training.
 Can improve the productivity of a firm – On the job training follows the principle
of "Learning By Doing". So, employees are actually working at the time of training.
Therefore, immediate productivity is possible while conducting training within the
workstation.
 It allows instant feedback – During on-the-job training, employees receive
immediate feedback from their trainers after the execution of a task.

Disadvantages

 Can result in low productivity – The trainees are taken at the actual workstation for
training; hence, they are in the process of learning skills. As a result, the
organizational productivity will be lower.
  May disrupt distraction processes - Many team disruptions may occur due to new
trainees stumbling into the real workplace.
 Accidents may occur at the workplace – The likelihood of an accident is
particularly high if the trainers are directly involved in the production process and
lack experience.
 Errors in production – Since the trainees are not involved with production activities,
there will be the possibility of errors in production activities.
 Can be costly to a company - The method is costly in the sense that the workers are
disturbed by training activities; the goods produced by the trainees will have less
quality and there will be chances of damage to goods.

Off-the-job training

 Off the job training is a type in which the employees training is conducted at a
different location away from the actual work site.
 The employees are trained mainly using a theoretical approach unlike on-the-job
training.
 The various methods of off-job-training include seminars, conferences, lecturers etc.

Advantages of off-the-job training

 Can lead to higher productivity - since trained employees are placed in the actual
workstation.
 It is an effective method of training – Off the job training is well organized and
conducted by experts and specialists which makes the training program more
effective.
 Minimisation of errors – In off-the-job training, the employees are trained outside
the work environment.
 No disturbance of work during production – When the trainees are not involved in
production process, the production activities can be carried out without any
interruption.
 It is economical method – As a huge number of employees are trained during a
single phase, the method is economically viable to the company in the long run.
Disadvantages

 It is more expensive – This method of training may be very expensive due to extra
space, accommodation and transportation costs and experts' fees etc.
 It is less effective – Off the job training is less effective than on the job training
method because it is conducted outside the working environment. Employees need
extra induction training to handle their job.
 No production will be taking place – During training period, no production takes
place because employees are kept away from the actual workplace.
 It is conducted outside the workstation - Off-the-job training program takes place
outside the workstation, so that it may not yield the desired result to employees as
they are unknown with actual machines and equipment.