TRAINING.

TRAINING.

• Is a process that involves increasing the knowledge and skills

of a worker to enable them do their job more effectively.

 Objectives of Training/ Importance of training workers

1. Improve the efficiency of workforce: Less mistakes in production

which improves labour productivity (output per worker or labour

hour). This is because training helps to reduce wastage of materials

(raw materials and time) since it minimizes mistakes in production.

2. Make workers multi-skilled and flexible: This can enable workers

cover up the absence of an employee hence production can still

continue. This may prevent customers from being dissatisfied due to

delays in production.
Cont..
3. Adapt to change: Training employees can enable the firm invent and
innovate more easily as it enables the firm cope with the external
influences e.g. changes in technology. As such the firm can attain customer
loyalty, profit maximization, growth or survival due to superior products.

4. Motivation of workers: Training can lead to high staff morale since it

may increase job satisfaction. This is because the workers may become
good at their work and can easily meet targets reducing frustration and
dissatisfaction. Hence the workers may become more loyal reducing
labour turn over.
 Disadvantages of Training/ Costs of training workers

1. Costly: Training can be expensive to the firm especially where the firm uses off-the-

job training. These amounts of money used in training have opportunity costs since

they could have been used to expand the business such as in research and

development or opening a new branch.

2. Time consuming: Training may be time consuming since the amount used in training

could have been used in producing more output. This can occur where the employee

has to be away from work such as in off-the-job training or where the trainer is taken
Cont..
• Employees leaving: An employee may leave the
organisation to a rival firm once he/ she has been trained.
This is because he/she may need a promotion or higher pay
due to the higher qualification. The cost of recruitment is
expensive plus the business may be losing a talented
employee to a rival firm.
 Types of training

1.Induction training
2.On-the-job training
3.Off-the-job training
Induction Training-Definition

• Induction training refers the type of training done to introduce

a new employee to its work environment.

 The main methods of one-the-job training include:
 Demonstration / instruction - showing the trainee how to do the job
 Coaching - a more intensive method of training that involves a close
working relationship between an experienced employee and the trainee
 Job rotation - where the trainee is given several jobs in succession, to
gain experience of a wide range of activities (e.g. a graduate
management trainee might spend periods in several different
departments)
 Projects - employees join a project team - which gives them exposure to
other parts of the business and allow them to take part in new activities.
Most successful project teams are "multi-disciplinary"
Induction Training Content
Importance/ Advantages of Induction Training

1.Helps new employee settle in: This enables a new recruit

to become productive as quickly as possible. This is because
induction training may reduce labour turnover and also
motivates workers.

2.Health and safety training may be required: Induction

training can avoid costly mistakes by recruits not knowing
the procedures or techniques of their new jobs.
Costs/ Disadvantages of Induction Training

1.Time consuming (delays the start of employee’s work).

2.Wages are paid but no work has been done by the

employee.
 2. On-the-job Training

• On the job training occurs where employees receive training

whilst remaining in the workplace.

Forms of On-the-job Training:

1.Demonstration / instruction -

2.Coaching -

3.Job rotation

4.Mentorship
 On-the-job Training - Evaluation
Advantages Disadvantages

1. Generally, most cost-effective

1. Quality depends on ability of trainer
2. Employees are actually and time available
productive
2. Bad habits might be passed on
3. Opportunity to learn whilst
3. Learning environment may not be
doing
conducive
4. Training alongside real
4. Potential disruption to production
colleagues
 3. Off-the-job Training

•Off-the-job Training- Definition

• Off-the-job training occurs when employees are taken away

from their place of work to be trained.
 Forms of Off-the-job Training

1.Day release (employee takes time off work to attend

a local college or training center)

2.Distance learning / evening classes

3.Sponsored courses in higher education

4.Self-study, computer-based training

 Off-the-job Training - Evaluation
Advantages Disadvantages
1. A wider range of skills or 1. More expensive – e.g. transport and
qualifications can be obtained accommodation and fees to college
or university.

1. Can learn from outside specialists or 1. New employees may still need some
experts induction training

1. Employees can be more confident 1. Employees now have new

when starting job skills/qualifications and may leave
for better jobs
 MOTIVATION.

• Motivation refers to desires to achieve a goal.

• Self motivation means that you have a drive to achieve goals
on your own as you do not need any encouragement
THE IMPORTANCE OF MOTIVATION
1. Easy to attract employees – a business that motivates its
employees find it easy to attract and recruit high capable and
reliable workers allowing it to gain competitive edge on its
rivals. If employees are motivated, the working environment
and atmosphere is likely to be pleasant. Workers are likely to
be cheerful, supportive, polite and positive. Good candidate
are likely to accept the job in such an environment.
• Easier to retain employees – workers who are well

motivated is unlikely that they will leave the employment.

This means staff turnover will be lower, this will reduce the

cost of recruitment, selection and training. It also ensure

smooth operations, high quality customer service as well as

building businesses’ reputation.

3. Higher labour productivity – well –motivated employees

will work harder. They are likely to take more pride in their

work, complete tasks quickly and feel that their jobs are

important. As a result they will increase output and

cooperation, boost team spirit leading to higher productivity.

 How can businesses influence motivation

Business can change motivation of workers because they have opportunity

to provide for a number of human needs. This needs may be physiological,

social or concern safety and security. Businesses can meet these needs by

providing adequately paid, challenging and creative work.

•A number of theories have been developed that suggests how businesses

can motivate workers by satisfying human needs. They include:

 Herzberg –two – factor theory
•Psychologist Fredrick Herzberg discovered in the 1960s that
certain factors at work help to give employees job satisfaction. He
called these motivators. He also found that other factors could
leave employees dissatisfied. He called these hygiene factors.
•The motivators include:
 Achieving aim
 Chance of promotion
 Responsibility
 Interesting work
 Recognition and:
 Personal development
Employers must find ways of giving workers job satisfaction (pleasure,
enjoyment, or sense of achievement) to motivate them. They have to
ensure jobs are interesting and that worker’s achievement are
recognized. Workers must also be a chance to perform exceptionally
well and win promotion. As result job enrichment (making a job more
challenging and interesting) could be used to motivate workers.
The hygiene factors include:
 Job pay.
 Working conditions.
 Job security.
 Quality of supervision.
 Staff relationships and,
 Company policy
ORGANISATIONAL STRUCTURES AND EMPLOYEES:

What is an organization Chart/Structure?

This is the layout of the different levels of responsibilities and
authority in an organization.
The most common organization charts can be grouped into
hierarchical and flat organizational structures.
These organizational structures can either be suitable for
centralization and decentralization of the organization.
 Hierarchical Organizations

What is a hierarchical organisation?

Hierarchical organization occurs where employees are ranked at various
levels within the organization, each level is one above the other.

 At each stage in the level of hierarchy, one person has a number of

workers directly under them in the chain of command and within
their span of control.

 As any business grows the number of management levels also

increases and therefore the organisational structure gets tall creating a
tall structure.
(Tall) and Flat (Horizontal) organization charts
Hierarchical/Tall Organization Structure:

•What is a hierarchical/tall structure?

•Hierarchical structure is a structure in which there are many

managers with smaller span of control. i.e. is a structure with

many levels of management.

 Span of control:
•Definition: Span of control refers to the number of employees
that are directly under the control and supervision of a
manager.

a)Chain of command:

•Definition: Chain of command is the route through which

instructions are passed from the top of the hierarchy to the
bottom of the hierarchy in an organization.
•Hierarchy refers to the levels of responsibilities and authority
in an organization
Delegation/ Empowerment

• Definition: Delegation is the assigning of the authority to

carry out a task to the juniors by the senior managers.

• Delegation is one of the non-financial incentives of

motivating staff as they feel important, recognized and
empowered to act for the organization.
Diagram 1: Tall/ Hierarchical
Organization Structure
 Advantages of Tall organizational
structures
1.Closer supervision: Promotes closer supervision of the juniors by
the managers to ensure the tasks are carried out as expected.

2.Closer relationship between managers and workers: Promotes

good and closer relations between managers and the worker. A
manager will be in a position to cultivate a personal relation with
the juniors that may increase productivity.

3.More effective communication: Communication is more effective

within departments here as the span of control is manageable.
Disadvantages.
• Communication can be poor because there is a long chain of
command.
• Management cost will be high.
• There may be a clear route of promotion that might help to motivate
staff.
• Control tends to be more formal and less friendly because of all the
layers in the hierarchy.
Flat/ Horizontal Organization Structure:

What is a horizontal organization structure?

•Flat organizational structure is a structure with fewer

managers with large spans of control. The structure has
fewer levels of management relative to tall organization
structures.
• The chain of command is short but the span of control is
wide.
• Advantages.
• Communication is better because the chain of command is
short.
• Management cost are lower because there is more direct
contact between layers.
•
Delegation.
• In some situations the managers may hand a more complex
tax to subordinate. This is called delegation.

• Delegation can be motivation to a worker because they feel as

though they are being trusted to carry out more difficult task.

• However it can demotivate a worker when they think that

extra work is being given to them without any reward.
Centralized and Decentralized.

• Centralized type of organization system where most decision

are made at the top of the organization and then passed down
the chain of command.
• Decentralized type of organization system is where decision
making is pushed down the chain of command and a way
from the top
 Advantages and disadvantages of centralized
1. Senior management has complete control over resources.
2. Senior managers are trained and experienced in decision making.
3. It prevents parts of the business (such as different departments)acting
independently.
4. Coordination and control is easier.
• Disadvantages.
1. Employees may be demotivated without any authority.
2. It brings less creativity and fewer ideas.
3. Procedures may be needed to make decisions making easier.
4. People at the top may be out of touch with the needs of customers
Decentralization. Advantages
1. Workers have authority and may be better motivated.

2. It speeds up decision making.

3. It takes pressure off senior managers by reducing their work

load.

4. Workers get opportunity to be creative and share their ideas.

5. It provides more promotion opportunities at different

managerial levels.
DEPARTMENTAL
FUNCTIONS
Business are divided into departments and will vary according
to the size and needs of the business.
Small business can have only two department ie production
department and sales department.
However as business grow , many are likely to divide their
organization into four traditional departments
 Production.
 Marketing.
 Human resource.
 finance
Human resource (HR) Department.
HR Department is responsible for the welfare of employees.
The main task completed by the department include;
1. Workforce planning.
2. Recruitment and selection.
3. Training.
4. Health and safety of employees.
5. Staff welfare.
6. Employment issue.
7. Industrial relations.
8. Disciplinary and employment procedure.
9. Dismissal.
10.Redundancy.
FINANCE DEPARTMENT

• The financial department is responsible for administering and

monitoring all financial transactions carried out by business.
Functions of financial department.
• Recording transactions .- which are used to produce
important financial statement.
• Processing of wages and salaries for business employees.
• Credit control. This involves monitoring the amount of
money owned by customers.
• Cash flow forecasting and budget.
• Producing business Accounts. Ths helps t tell the financial
position of the business.
Marketing department
• The marketing department monitors market trends and identifies

consumer needs and wants. The team then developed a marketing

strategy to create more awareness and purchases by customers. In

addition, they perform various tasks and activities such as market

research, test marketing, advertising, and branding.

Function of marketing department.
• Market research.
• Product planning ie deciding on which products should be
marketed, which product to be withdrawn and replaced with
new ones.
• Pricing. The marketing department has to decide what price
should be charged for a range of a product sold by business.
• Advertising.
• Customers service.
• Public relations.
Functions of Production Department

• Production is the functional area responsible for turning

inputs into finished outputs through a series of production
processes. The Production Manager is responsible for making
sure that raw materials are provided and made into finished
goods effectively. He must make sure that work is carried out
smoothly, and must supervise procedures for making work
more efficient and more enjoyable
MARKETING DEPARTMENT.
1.Market Research:

Conducting research to gather information about customers,

competitors, and market trends. This helps in making informed
decisions about product development, pricing, and
promotional strategies.
2. Product Development:
Collaborating with other departments to develop new products
or improve existing ones based on market research and
customer needs.
 3. Pricing:

Determining the optimal pricing strategy for products or

services, considering factors such as production costs,
competition, and customer demand.
CONT…
4. Promotion:
Planning and executing marketing campaigns to promote
products or services. This includes activities such as
advertising, public relations, sales promotions, and social
media marketing.

5. Distribution:
Managing the distribution channels through which products or
services reach customers. This involves decisions about
warehousing, transportation, and inventory management.
 5. Market Segmentation:

Identifying distinct groups of customers with similar

characteristics and needs. This allows for targeted marketing
efforts and customization of products or services for specific
market segments.
 6. Marketing Analytics:
Analyzing data and metrics related to marketing activities to
evaluate their effectiveness and make data-driven decisions.
This may involve measuring campaign performance, tracking
customer behavior, and conducting market share analysis.
It's important to note that specific syllabuses may vary, so it's
advisable to refer to the official syllabus documents provided
by the examination board or consult with your teacher for
precise details.
 7. Sales Management:
Overseeing the sales team, setting sales targets, and monitoring
their performance. This may include training, motivation, and
providing necessary resources to achieve sales objectives.
8. Brand Management:
Developing and maintaining a strong brand identity for the
company and its products or services. This involves managing
brand positioning, brand image, and brand communication.
 9. Customer Relationship Management (CRM):
Building and maintaining relationships with customers to
enhance customer satisfaction and loyalty. This includes
strategies for customer retention, managing complaints, and
gathering feedback
 Relationship and interdependence between
departments.
• The production department may have to meet with the
marketing department to discuss changes to customers order.

• The welfare officer from human resource department may

have to meet the sales director to discuss wages and salaries.
• The Department will need to communicate regularly with
finance department to discuss wages and salaries.

• The finance department may have to communicate with the

production department to ensure that designs for anew
product are profitable.
• Functions of production mangement
• Selection of product and design. ...
• Production planning and control. ...
• Machine maintenance and replacement. ...
• Efficent use of capital and resources. ...
• Competitive edge. ...
• Minimizes risk of product failures.
REVISSION QUESTIONS
1. Define training. (2 marks)

2. Give and explain three reasons why training is carried out

in organisations. (6 marks)

3. Explain three disadvantages of training to the employee in

an organisation. (6 marks)