When a controller action is rendered, Rails will attempt to find a matching layout and view based on the name of the controller.

Views and layouts are placed in the app/views directory.

Given a request to the PeopleController#index action, Rails will search for:

• the layout called people in app/views/layouts/ (or application if no match is found)
• a view called index.html.erb in app/views/people/ by default
• if you wish to render other file called index_new.html.erb you have to write code for that in PeopleController#index action like render 'index_new'
• we can set different layouts for every action by writing render 'index_new', layout: 'your_layout_name'