Direction (Qs.1 to 6): Read the given passage carefully and answer the questions that follow.
For many low-wage workers in India, basic skills training can be the difference between economic empowerment and persistent poverty. It may seem that the employers of such low-wage workers — who focus mainly on keeping costs down in order to survive in a relentlessly competitive industry — would have no incentive to provide such training or resources for personal development. But our research suggests that a better way to manage low-wage workers in developing economies is to invest in them, which is good for both worker welfare and the company’s bottom line.
In July 2013 we implemented a randomized controlled trial in five factory units in Bangalore operated by Shahi Exports Pvt. Ltd., India’s biggest garment export firm. The trial covered 2,703 workers who initially expressed interest in the program and involved the administering of the Personal Advancement and Career Enhancement (P.A.C.E.) training, a life skills course for female garment workers designed by Gap, Inc. P.A.C.E. teaches communication, time management, decision making, problem solving, and financial literacy through weekly group sessions in the workplace. Workers within and across production lines were randomized into treatment (P.A.C.E. training) and control (no P.A.C.E. training) groups. We measured the impacts of soft skills training on workplace outcomes such as retention, productivity, and salary, using the firm’s administrative data along with changes in knowledge, behaviors, and personality traits of workers. We then computed return on investment by combining our impact estimates with data on programmatic costs. The experiment was designed to determine both whether workers benefit from the training and whether it pays for firms to invest in such training for their workers.
P.A.C.E.-trained workers displayed higher self-regard and sociability. They were more likely to save for their children’s education and use state-sponsored health care and pension schemes. They were 15 percentage points more likely to request training in technical skills, and 7.7 percentage points more likely to report that they expected a promotion within the next six months. Treated workers were also more valuable employees: They were more productive by seven percentage points post-training, and the average complexity of the sewing operations to which they were assigned rose considerably. Moreover, treated workers’ retention was three percentage points higher during the program, as P.A.C.E. training was akin to an in-kind transfer from the firm to the workers.
Nine months after program completion, we calculated the net rate of return to the company’s investment in P.A.C.E. training for workers at roughly 250%. The high return to the program can be explained by the fact that the modest cumulative costs stopped accruing after program completion, while the benefits (mostly from productivity increases) continued to rise. That is, total costs peaked at $90,285 after 11 months, while the gains continued to grow (up to $321,145 at 20 months from the start of training). Additionally, there was a significant spillover effect, with untrained workers on the same production lines as trainees being 6.5 percentage points more productive than control workers and working 7.8 days more over the duration of the program.Question No : 1
Which of the following is true with reference to the passage?
I. The experiment was designed to determine both whether workers benefit from the training and whether it pays for firms to invest in such training for their workers.
II. Treated workers’ retention was five percentage points higher during the program, as PACE training was akin to an in – kind transfer from the firm to the workers.
III. For many low – wage workers in India, basic skills can be the difference between economic empowerment and persistent poverty.
(1) Only I
(2) Both I and II
(3) Both I and III
(4) Only III
(5) All of the above.
Question No : 2
According to the passage, which one of the following explains the high return of the program?
(1) Costs stopped after the program was completed but the benefits continued to rise.
(2) The total costs peaked at $90,285 after 11 months, while the gains continued to grow (up to $321,145 at 20 months from the start of training).
(3) The research suggested that a better way to manage low-wage workers in developing economies is to invest in them, which is good for both worker welfare and the company’s bottom line.
(4) Treated workers were more valuable as they were more productive by seven percentage points post-training, and the average complexity of the sewing operations to which they were assigned rose considerably.
(5) All of the aboveQuestion No : 3
What do you mean by the phrase ‘spill over effect’ as used in the passage?
(1) Something which is exaggerated.
(2) An event that occurs due to some other event in a seemingly unrelated context
(3) An understatement to a situation
(4) Two things happening at the same time.
(5) None of the aboveQuestion No : 4
According to the passage, which one of the following could be the bottom line to the context of the passage?
(1) Provides a strong case for the companies to invest in employee trainings
(2) The profits that can be generated on employing the employee training programs far outweigh the costs incurred
(3) It can be a real boon for companies for maximizing their employee performance.
(4) The study begins to build the case that programs like P.A.C.E. have the potential to both increase the skill sets of workers and be profitable for firms
(5) All of the aboveQuestion No : 5
Which of the following can be easily summarized from the passage?
(1) An experiment in India shows how much companies have to gain by investing in their employees.
(2) Why do companies refrain from investing in their employees?
(3) How beneficial are employee training programs from both the perspective of an employee as well as an employer?
(4) The upsides and downsides of the employee training programs
(5) None of the aboveQuestion No : 6
Which of the following are the out comes on which the impact of skill training is being measured?
I. Remuneration
II. Confinement of an employee
III. Efficiency of an employee
(1) Only II
(2) Both I and II
(3) Both I and III
(4) Only I
(5) All of the above