Gopal Final

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Chapter 1: industry profile

INDUSTRY PROFILE

FMCG is an acronym forFast Moving Consumer Goods, which refer to things that we buy from

local supermarkets on daily basis, the things that have high turnover and are relatively

cheaper.

STATUS OF FMCG SECTOR

The Indian FMCG sector is an important contributor to the country's GDP. The

FMCG sector is the fourth largest sector of Indian economy.

The FMCG market is estimated to treble from its current figure in the coming decade.

Penetration level as well as per capita consumption in most product categories like

jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped

market potential. With growing Indian population, particularly the middle class and

the rural segments, presents an opportunity to makers of branded products to convert

consumers to branded products. The Indian rural market with its vast size and demand

base offers a huge opportunity for investment. Rural India has a large consuming class

with 41 per cent of India's middle-class and 58 per cent of the total disposable

income.

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This report on the Indian FMCG sectors covers all the important aspects of the Indian

FMCG sector with valuable information and data to help the busy managers and

investors to arrive at an informed decision.

The Indian FMCG sector is the fourth largest sector in the economy with a total

market size in excess of US$ 13.1 billion. It has a strong MNC presence and is

characterized by a well established distribution network, intense competition between

the organized and unorganized segments and low operational cost. Availability of key

raw materials, cheaper labour costs and presence across the entire value chain gives

India a competitive advantage.

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion

in 2015. Penetration level as well as per capita consumption in most product

categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the

untapped market potential. Burgeoning Indian population, particularly the middle

class and the rural segments, presents an opportunity to makers of branded products to

convert consumers to branded products. Growth is also likely to come from consumer

'upgrading' in the matured product categories. With 200 million people expected to

shift to processed and packaged food by 2010, India needs around US$ 28 billion of

investment in the food-processing industry.

INDIA A LARGE DOMESTIC MARKET

India is one of the largest emerging markets, with a population of over one billion.

India is one of the largest economies in the world in terms of purchasing power and

has a strong middle class base of 300 million.

RURAL AND URBAN POTENTIAL

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Urban Rural

Population 2001-02 (mn household) 53 135

Population 2009-10 (mn household) 69 153

% Distribution (2001-02) 28 72

Market (Towns/Villages) 3,768 627,000

Universe of Outlets (mn) 1 3.3

Around 70 per cent of the total households in India (188 million) reside in the rural

areas. The total number of rural households is expected to rise from 135 million in

2001-02 to 153 million in 2009-10. This presents the largest potential market in the

world. The annual size of the rural FMCG market was estimated at around US$ 10.5

billion in 2001-02. With growing incomes at both the rural and the urban level, the

market potential is expected to expand further.

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PRESENCE ACROSS VALUE CHAIN

Indian firms also have a presence across the entire value chain of the FMCG industry

from supply of raw material to final processed and packaged goods, both in the

personal -care products and in the food processing sector. For instance, Indian firm

Amul's product portfolio includes supply of milk as well as the supply of processed

Group products like cheese and butter. This makes the firms located in India more

cost competitive.

INCOME DISTRIBUTION

Most Indian FMCG companies focus on urban markets for value and rural markets for

volumes. The total market has expanded from US$ 17.6 billion in 1992-93 to US$ 22

billion in 1998-99 at current prices. Rural demand constituted around 52.5 per cent of

the total demand in 1998-99. Hence, rural marketing has become a critical factor in

boosting bottom lines. As a result, most companies' have offered low price products in

convenient packaging. These contribute the majority of the sales volume. In

comparison, the urban elite consume a proportionately higher value of FMCGs, but

not volume.

Demand for FMCG products is set to boom by almost 60 per cent by 2007 and more

than 100 per cent by 2015. This will be driven by the rise in share of middle class

(defined as the climbers and consuming class) from 67 per cent in 2003 to 88 per cent

in 2015.

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The boom in various consumer categories, further, indicates a latent demand for

various product segments. For example, the upper end of very rich and a part of the

consuming class indicate a small but rapidly growing segment for branded products.

The middle segment, on the other hand, indicates a large market for the mass end

products. The BRICs report indicates that India's per capita disposable income,

currently at US$ 556 per annum, will raise to US$ 1150 by 2015 - another FMCG

demand driver. Spurt in the industrial and services sector growth is also likely to

boost the urban consumption demand.

EXPORTS

India is one of the world's largest producers for a number of FMCG products but its

exports are a very small proportion of the overall production. A total export of food

processing industry was US$ 2.9 billion in 2001-02 and marine products accounted

for 40 per cent of the total exports. Though the Indian companies are going global,

they are focusing more on the overseas markets like Bangladesh, Pakistan, Nepal,

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Middle East and the CIS countries because of the similar lifestyle and consumption

habits between these countries and India. HLL, Godrej Consumer, Marico, Dabur and

Vicco laboratories are amongst the top exporting companies.

SECTORIAL OPPORTUNITIES

According to the Ministry of Food Processing, with 200 million people expected to

shift to processed and packaged food by 2010, India needs around US$ 28 billion of

investment to raise food processing levels by 8-10 per cent. In the personal care

segment, the lower penetration rate also presents an untapped potential. Key sectoral

opportunities are mentioned below:

Staple: branded and unbranded: While the expenditure on mass-based, high

volume, low margin basic foods such as wheat, wheat flour and homogenized milk is

expected to increase substantially with the rise in population, there is also a market for

branded staples is also expected to emerge. Investment in branded staples is likely to

rise with the popularity of branded rice and flour among urban population.

Group based products: India is the largest milk producer in the world, yet only 15

per cent of the milk is processed. The US$ 2.4 billion organized Group industry

requires huge investment for conversion and growth. Investment opportunities exist in

value-added products like desserts, puddings etc. The organized liquid milk business

is in its infancy and also has large long-term growth potential.

Packaged food: Only about 8-10 per cent of output is processed and consumed in

packaged form, thus highlighting the huge potential for expansion of this industry.

Currently, the semi processed and ready to eat packaged food segment has a size of

over US$ 70 billion and is growing at 15 per cent per annum. Growth of dual income

households, where both spouses are earning, has given rise to demand for instant

foods, especially in urban areas. Increased health consciousness and abundant

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production of quality Soya bean also indicates a growing demand for soya food

segment.

Personal care and hygiene: The oral care industry, especially toothpastes, remains

under penetrated in India with penetration rates below 45 per cent. With rise in per

capita incomes and awareness of oral hygiene, the growth potential is huge.

Lower price and smaller packs are also likely to drive potential up trading. In the

personal care segment, according to forecasts made by the Centre for Industrial and

Economic Research (CIER), detergent demand is likely to rise to 4,180, 000 metric

tonnes by 2011-12 with an annual growth rate of 7 per cent between 2006 and 2012.

The demand for toilet soap is expected to grow at an annual rate of 4 per cent between

2006-12 to 870,000 metric tonnes by 2011-12. Rapid urbanization is expected to

propel the demand for cosmetics to 100,000 metric tonnes by 2011-12, with an annual

growth rate of 10 per cent.

Beverages: The US$ 2 billion Indian tea market has been growing at 1.5 to 2 per

cent annually and is likely to see a further rise as Indian consumers convert from

loose tea to branded tea products. In the aerated drinks segment, the per capita

consumption of soft drinks in India is 6 bottles compared to Pakistan's 17 bottles, Sri

Lanka's 21, Thailand's 73, the Philippines 173 and Mexico's 605. The demand for soft

drink in India is expected to grow at an annual rate of 10 per cent per annum between

2006-12 with demand at 805 million cases by 2011-12. Per capita coffee consumption

in India is being promoted by the coffee chains and by the emergence of instant cold

coffee. According to CIER, demand for coffee is expected to rise to 535,000 metric

tonnes by 2012, with an annual growth rate of 5 per cent between 2006-12.

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Edible oil: The demand for edible oil in India, according to CIER, is expected to

rise to 21 million tonnes by 2011-12 with an annual growth rate of 7 per cent per

annum.

Confectionary: The explosion of the young age population in India will trigger a

spurt in confectionary products. In the long run the industry is slated to grow at 8 to

10 per cent annually to 870,000 metric tonnes by 2011-12.

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Chapter 2 : Company Profile

Gopal Group, on its way to success has established many milestones, for others to

follow. Leading by example, Gopal Group, now a multi-crore business

conglomerate, took its first step in 1942.

Dream child of the visionary Late Shri Hari Chandji Sugandhi, the group saw light

of the day at a humble shop at Old Delhi. Today, the group has grown into a multi-

product, multi-disciplinary enterprise of unprecedented strength and stature, spread

across the country.

:: Gopal Group ::.

Address : 339,F.I.E. , Patpargang,Delhi - 110092, INDIA.

Contact No. : 011 - 43160260

E-mail Id : [email protected]

Website : www.gopalgroup.net

Leadership

Endowed with most humane and philanthropic qualities, Shri Srigopal Gupta,

Chairman of the illustrious Gopal Group, is the principal driving force behind the

meteoric rise of Gopal Group. A visionary leader and able entrepreneur, Shri Gupta

has enriched and strengthened the Group with his sound business governance and

value-driven management. His ingenious ideas and precise execution are the pillars

of effective product development and market direction. While he has been

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instrumental in elevating the Company to new heights, he plays a pivotal role in the

Groups strategic planning, policies and corporate affairs.

He also inspires the Companys unique work culture by promoting core values that

focus on people, customers, innovation, quality, integrity, fun and profitability.

Impending with his vibrant and versatile ideas of expansion and diversification to

explore sustainable livelihood opportunities is his young and creative son, Mr.

Apoorv Gupta. His passion for building the Company to a stronger and bigger

conglomerate reflects in his keen interest in every facet of product development and

introduction. Indeed, he is known for excellent people management and team building

activities besides infusing the spirit of action and a result oriented work culture.

Apoorv Gupta, a dignified management awardee heads the Sales & Marketing desk

and is a man of many talents with a composed grace in Indian Music.

Vision & Mission

Human Resoureces

.:: Rise & Shine ::.

Gopal Group invites you to take up the challenges and make your skills count through

numerous career and training opportunities. In Gopal, we have people who are

different from one another, but united by deep-rooted values and culture.

Offering unlimited challenges and opportunities for personal growth with an insight to

care for its budding talents build the core part of the Groups human resources culture

of development and values.

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Encouraging personal development potential to become a reality is a fundamental

factor in its success. Gopal Group always encourages people to make the most of their

talents and take a leading role in their own development.

Trust and Loyality

We keep our loyalty towards the consumers and the trust they place in our products

with their everyday purchases at the core of the long-lasting relation that we enjoy

with them.

Our Company practices are based on mutual trust between colleagues, full dedication

and transparency towards the Group, as well as towards all business and social

stakeholders with whom we interact daily.

Respect and Resposibilty

We uphold the protection of human dignity, unconditional respect of human rights, in

every operational aspect of our business.

We support the abolition of the exploitation of child labour and of forced and coercive

labour, within our sphere of influence and along the entire production chain, through

specific legal means and close relations with the work force.

How we Operate

We are an Indian company with manufacturing and sales facilities in strategic

locations. We apply exacting standards to ensure premium quality products. Besides

our day to day operations of manufacturing tobacco and non-tobacco products, we are

also involved in assessing our present work methods and improvising according to the

changing scenario.

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Regular training programmes keep our workforce fully informed about the latest in

the industry. We contribute to community welfare through charitable activities and

supporting NGOs.

The Procurement Unit

Raw material is the life & soul of an end product & we, at Gopal Group, insist on the

perfect. Our highly experienced workforce, led by a skillful & experienced

Procurement Manager, most responsibly chooses the best to deliver the finest. Be it

tobacco based products, flavors, fragrances, essences ... we handpick best of the lot .

Work, Profit & Share

With highly specialized and technically most advanced machinery and state of the art

infrastructure situated at Baddi in Himachal Pradesh and in the NCR region, the plants

are regularly upgraded to enhance the work capacity of the machines. In extremely

safe, hygienic, resourceful and environment friendly conditions, skillful professionals,

technicians, experts and workers put in the best of their capabilities to produce highest

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quality products.

The Processing Unit

A good raw material treated & processed by most knowledgeable & well versed

professionals, results in a superb end product. Meticulously made, at our hi-tech

plants, every end product is an enviable creation that stands the test of performance

exceptionally well at par with the leading brands. Gopal has indeed raised the bar for

niche products. Establishing quality codes for others to follow these products are

looked upon as inspiration for others.

Hospitality

We have now immersed ourselves into the hospitality business also in

conjunction with world famous Welcome Group Hotels. Fortune Resort Grace

the new hospitality venture is the offspring of this alliance. This new resort

which has come up in Mussorie deserves more than a passing mention.

Surrounded by pristine hills and enchanting valley, the resort is located at theLibrary End of the Mall Road. Spread over an expanse of 32 acres, it offers a

choice of 74 well appointed rooms, including Valley View Rooms, Luxury

Suites and opulent Presidential Suite. This is a perfect place to unwind yourself

and at the same time provides a unique environment for business and leisure.

And this is just a beginning. More such landmark hotels are lined up to dot the

Indian landscape in the hospitality circuit.

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Fortune Resort Grace, Mussoorie

Hotel Overview

Popularly known as the Queen of Hills, Mussoorie is a charming hill station,

34 kms from Dehradun, situated at an altitude of 2500 meters above sea level in

the beautiful Gharwal Hills. Mussoorie is one of the most frequently visited hill

stations in India. It provides excellent respite to people who want relief from

the hot sultry conditions of the plains, especially since it is close enough to the

capital to make just a weekend trip.

Mussoorie overlooks the sprawling Doon valley and the city of Dehradun, the

gateway to the entire Garhwal. It has a rich history. Chanced upon by a British

army officer Captain Young in 1827, this tiny wooded inhabitation fast turned

into a Victorian resort, with its central Mall, a library and an Anglican Church.

The towns immense natural beauty and pleasant climate makes it a perfect

destination for a peaceful holiday with friends and family.

Nestled in this hill getaway of majestic glory, we have our Fortune Resort

Grace perched cozily on a pine covered hill slope with an enchanting view of

the valley. The resort is located at the Library End of the Mall Road, yet it

retains the charm of a quiet country resort. This is a place for leisure,

recreation, family and corporate bonding, and a select venue for conferences.

Services & FacilitiesFortune Resort Grace offers a whole range of in-room features and facilities to

ensure a pleasant stay for the guests. Starting from 24-hours room service,

Tea/coffee maker, Satellite 32'' LCD TV, High speed internet connectivity,

Daily newspaper, Electronic weighing measure, Electronic safe, Direct dial

STD and Fresh fruits in Valley View Rooms and Suites, everything has been

well thought of.

The resort also offers Currency exchange, Doctor on call, Valet parking, Baby

sitting facility, Gymnasium, Recreation Area with a pool table, Kids Play Zone

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Power

Without power, development is not possible and we at Gopal comprehend this

clearly. It is this appreciation that has spurred us to set up a Mega hydro power

project in Himachal Pradesh. Once completed the company will be able to tap

power generation potential in the state of Himachal and Uttarakhand and help

to augment power generation.

Behind, our stellar performance is the power of the people & the foresight of

the management. A strong workforce which is working relentlessly to deliver

this powerful vision of becoming the powerhouse in the hilldevelopment of

Himachal Pradesh & Uttarakhand. With the commissioning of the project the

group aims to achieve international standard of excellence in all aspects of

hydropower.

.:: Social Responsibility lies at the core of our business philosophy ::.

Gopal Foundation was established on 8th September, 1999. It was set up for the noble

cause of imparting education. Needy and deprived children were adopted for quality

education and sent to good schools. These bright little ones were picked up from poor

families which were below the poverty line.

Soon the Trustee realized that only education did not suffice the cause for which

Gopal Foundation was established and it was decided to expand our horizon. The

Foundation decided to help the government in fighting the natural calamities and

man- made adverse conditions.

We donated generously towards rehabilitation of the

widows of the martyrs of Kargil War in 1999. When

Mother Nature turned hostile and a heart wrenching

earthquake struck in Bhuj, Gujarat, in 2001, Gopal

Foundation adopted an entire village and helped in

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construction of the houses. When TSUNAMI struck and

washed away the happiness from the shores of south

western coastline in India in the year 2004, we helped in

rehabilitating the displaced sufferers.

Kargil War in 1999

Year 2004 also saw a major expansion in the scope of our work. It was decided to

fight a cause which not only takes away life but leaves the family members

emotionally blank as they see their loved ones die helplessly in front of them for lack

of funds to buy the costly medicines. It was decided to fight CANCER by adopting

those patients who are so poor that they cannot even dream of their treatment. Not

everybody can think of going to a good hospital, let alone the treatment. These

patients go to hospitals such as AIIMS in the hope of being treated free. Here, no fee

is charged for doctors consultation and to some extent the medicines are also free.

But when it comes to costly medicines, e.g. chemotherapy drugs, even the hospital

cant afford to give them to every poor and needy patient. These patients realize that

they will just have to wait for the inevitable painful departure from their sufferings

and their family members will have to see them going through that unbearable pain

every day.

These patients come not only from Delhi but from all parts of India to AIIMS. We

got in touch with the Medical Superintendent of AIIMS and took up the matter with

the Head of Oncology Department. A system was worked out with the doctors and

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the Welfare Officer, wherein all the needy patients who are below the poverty line are

recommended to Gopal Foundation for adoption. We not only help them with

chemotherapy medicines but also counsel them thoroughly. They are introduced to

the magic of Yoga which not only helps them strengthen their inner self but also helps

them in fighting their disease with enhanced immunity. Till April, 2010, we

registered 500 patients with us who suffer from various types of cancer viz., Breast,

Lung, Brain Tumor, Cervix, Colon, Neuro Fibroma, Blood, Rectum, GIST, Ovary,

Uterus, Prostate, Thyroid, Obstructive Jaundice, Non Hodgkins Lymphoma etc.

AIIMS Delhi, INDIA

Various other causes are also taken up by Gopal Foundation. We help an NGO in

Delhi which takes care of infants who are abandoned by or separated from their

parents due to various reasons. Some of these infants are just a day old when

abandoned by their mothers. This NGO tries to find their parents, if possible,

otherwise after following a proper procedure hands them over to childless couples,

thus giving a reason to smile not only to the couple but to the child as well. The

Foundation supplies milk to this NGO every month so that these little ones are not

deprived of food.

There is another NGO in Delhi which runs a pre- school in the slums of South Delhi.

The children of this pre -school are prepared to get admission in good private

schools. This NGO not only helps in getting them admission but also makes sure that

all the academic requirements of these children are also catered to. Since we feel that

a child should be made self sufficient and education is the first step towards it, we

help the pre -school of this NGO in every possible way.

Schools run by an NGO in the slums of East Delhi and Noida are also adopted by us.

All their education material requirements like, books, copies, writing material etc. and

to some extent furniture are taken care of by our Foundation. The vocational training

schools of these NGOs are also supported by us by providing them various

equipments.

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Gopal Foundation also helps in marrying off the daughters of poor families and gifts

them utensils etc. to set up their kGopal Grouphen. Every year ten such newlyweds

are supported by Gopal Foundation.

We have certainly not forgotten our senior citizens. We have adopted an old age

home in Delhi, where different requirements of these citizens are taken care of.

Apart from all the above causes, Gopal Foundation is associated with ISKCON and

helps in their GAU SEWA Abhiyan.

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CHAPTER 3: TRAINING AND DEVELOPMENT

Training and Development

The effective functioning of any organization requires that employees learn to

perform their jobs at a satisfactory level of proficiency. An effective organization

wishes to have amongst its ranks individuals who are qualified to accept increasingresponsibilities. So much so that organizations need to provide opportunities for the

continuous development of employees not only in their present jobs, but also to

develop their capabilities for other jobs for which they might later be considered.

Training refers to the teaching/learning activities carried on for the primary purpose of

helping members of an organization to acquire and apply the knowledge, skills,

abilities and attitudes needed by that organization. Broadly speaking, training is the

act of increasing the knowledge and skill of an employee for doing a particular job.

Though it is true that unplanned learning through job experience helps development,

the experience of most organizations is that it is advantageous to plan systematic

training programmes of various types as a regular part of an adequate personnel

development programme. Such programmes are definite assets in helping managers to

learn correct job methods, to achieve a satisfactory level of job performance, and to

acquire capabilities that would be valuable in possible future jobs.

Planning and Training Activities

The following steps must form the basis of any training activity:

1. Determine the training needs and objectives.

2. Translate them into programmes that meet the needs of the selected trainees.

3. Evaluate the results.

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Training Inputs

There are three basic types of inputs: skills, attitudes, and knowledge.

The primary purpose of training is to establish a sound relationship between the

worker and his job- the optimum man-task relationship. Such a relationship is at its

best when the workers attitude to the job is right, when the workers knowledge of

the job is adequate, and he has developed the necessary skills.

Training activities in an industrial organization are aimed at making desired

modifications in skills, attitudes and knowledge of employees so that they perform

their jobs most efficiently and effectively.

Skills

Training activities nowadays encompass activities ranging from the acquisitions of a

simple motor skill to a complex administrative one. Training an employee for a

particular skill is undertaken to enable him to be more effective on the job. For

instance, new workers can be trained to achieve levels of output attained by

experienced older workers. Similarly existing workers whose levels of output are

below par can be retrained.

Attitude

Through orientation (induction) programmes, organization develops attitudes in new

employees, which are favorable toward the achievement of organizational goals.

Training programmes in industry are aimed at moulding employee attitudes to achieve

support for company activities, and to obtain better cooperation and greater loyalty.

Knowledge

Training aimed at imparting knowledge to employees in the organizations providesfor understanding of all the problems of modern industry. This knowledge for a

worker is specific to his job, and related broadly to plant, machinery, material

product, and quality and standard of product. Knowledge for managerial personnel

may be related to complexity of problems in organizing, planning, staffing, directing

and controlling.

In general, training initiated for imparting knowledge to employees should consider

three aspects:

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1. Knowledge in general about factory and work environment- job context

2. Specific knowledge related to job- job content

3. Knowledge related to quality and standards of product or quality of work.

Areas of Training

Areas of training can be classified into the following categories:

1. Training in company policies and procedures (induction training)

2. Training in particular skills.

3. Training in human relations.

4. Managerial and supervisory training.

5. Apprentice training.

Training in company policies and procedures

This is a part of the induction of a new employee. The objective is to orient newemployees with the set of rules, procedures, management, organization structure,

environment and products, which the firm has and/or deals with.

Orientation is a continuous process aimed at the adjustment of all employees to new

and changing situations. It aims to impart the facts of company rules and policy, to

create attitudes of confidence in the company, prides in the products, respect for

company personnel, and to provide information about needs and skills, development,

quality of production and work organization.

It also enables employees to get the first impression of the culture of the firm and

the kind of people he will have to deal with. At no time does it allow for questioning

or change of system. It, therefore, in no way contributes to the organizations growth,

nor does it enhance an employees ability to contribute to the organizations growth.

Induction programs are also used for in-company promotes, who have to be oriented

to the demands of their requirements.

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Induction programs are based on the philosophy that the process of initial adjustment

and entry to the organization is a difficult process. Unless a conducive and supportive

atmosphere facilitates it, it would leave the new entrant with several uncertainties in

his mind and make his assimilation in organizational life more complex and difficult.

Many organizations are conscious of this and devote considerable effort to make the

initial entry phase a pleasant and cordial one.

Training In Particular Skills

Training of employees for particular skills is undertaken to enable the employee to be

more effective on the job. It is a here-and-now proposition, somewhat like induction

training, which does not have a very significant development aspect to it. Its aim is

narrow-to guarantee a certain contribution to the job, for instance sales training and

machine skills.

Human Relation Training

This is a broad category embracing many different aspects.

Self-learning and inter-personnel competence can be included in this category-all

concerned with generally the same theme. It stresses a concern for individual

relationships, for feeling and treating people as human beings, rather than as

machines. Not only is this concern and awareness in ones attitudes and behavior

conducive to better work-place relations, but also to enhanced productivity. This

category of training is oriented towards the development of the individual and

consequently the organizations efficiency in terms of better teamwork.

Problems Solving Training

Many in-company programmes also revolve around organizational units, like

divisions of branches, which generally handle a product line. The practice is to hold

together all managerial personnel in a particular division/ branch from the both

headquarter and the field of offices and discuss common problems and solutions

across the table. This not only helps solve problems, but also serves as a forum for the

exchange of ideas and information, which could be utilized in other situations.

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Managerial and Supervisory Training

The managerial job combines both techniques and conceptual knowledge. If it is that

of a specialist, it would emphasize some techniques and knowledge like operations,

research, finance, production, and personnel management. If on the other hand it is a

general management job, then the emphasis would be on the principles of scientific

management: organizing, planning, staffing, directing and controlling.

Apprentice Training

The apprentice act 1961 was based on the philosophy of providing some technical

training for unskilled people in order that their employment opportunity is enhanced,

or alternatively to help them be self-employed. Industrial organizations in specified

industries are required to train apprentice in proportion to their workforce in

designated trades. The duration of training is one to four years.

Learning and Training

Irrespective of the type or method of training, trainer has to keep in mind some of the

principles of learning or motivation, which would enhance internalization of what is

taught.

Motivation

A trainee needs to have a desire to learn and benefit from the programme. If he is not

interested, or is de-motivated, then the learning outcome is going to be insignificant

and the company will have spent its money badly. On the other hand, being too

intense about learning and outcome may result in setting over-ambitious goals for the

individual.

Reinforcement

Following on the concept of motivation is that of reinforcement. For learning to take

place and be internalized to the desired extent, a trainee is rewarded or given some

encouragement. This reinforcement, or the acknowledgement that what has been

acquired is desirable, can be either an extrinsic or intrinsic reward- external praise or

some tangible reward, or the individuals feeling of a sense of progress. Current stress

is on positive support and helpful behavior, even when mistakes are made.

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Feedback

During the training process, it is useful for the trainee to be told how he is

progressing. The knowledge of results is, several researchers have confirmed, an

effective motivator. Constant and periodic feedback has positive effects on the

trainees learning. Unless the trainee knows how close his performance comes to the

desired standard, he will not have an opportunity to improve. Feedback, therefore,

provides a basis for correcting oneself. Secondly, feedback helps to sustain the

trainees interest in the task, or in the learning that is taking place, by bringing greater

involvement with the learning process. If feedback is to be meaningful, it should

follow a learning segment as quickly as possible.

Transfer of Training

The maximum use of training can be made if the trainee is able to transfer his learning

to his actual work role. This is possible if elements are incorporated in the training

situation from the job role, either existing or proposed. The more similar the learning

situation is to the job situation, the higher the degree of transfer the trainee can expect,

and hence the greater the relevance of the training programme.

Repetition

Repetition etches a pattern into our memory, e.g., when one studies for an

examination, it is necessary to repeatedly go over ideas so that they can be recalled

later.

Relevance

Relevance relates to the meaningful use of material, which aids learning, e.g., trainers

usually explain in the overall purpose of a job to trainees before assigning them a

particular task.

Training Policy

A company's training policy represents the commitment of its top management to

training, and is expressed in the rules and procedures that govern or influence the

standard and scope of training the organization. Training policies are necessary for the

following reasons.

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1. To highlight the firm's approach to the training function, provide guidance for

design and execution, and to provide information regarding programmes to all

employees.

2. Formulation of policy helps in identification of priority areas in training, and since

resources are scarce, they are prioritized according to felt needs.

3. A training policy document helps to communicate the firm's intent regarding an

employee's career development, and also gives the employee the opportunity to

better his prospects through training.

Positive Outcomes of Training

The continued effectiveness and efficiency of an organization is to some extentdependent on the ability of its employees to produce at high levels of efficiency, and

keep abreast with their changing job-role demands. Training will provide for an

output in this direction. The several positive benefits of training are that:

- Training helps employees to learn their jobs and attain desired levels of

performance speedily thus cutting costs and contributing to better utilization of

machines and materials, for example in workers' categories.

- Training helps to reduce the cost of raw materials and products-reducing losses

due to waste, poor quality products and damage to machinery-which would result

if an untrained employee were to learn on his own.

- Employee motivation is enhanced when employees known that the firm would

provide them training opportunities to increase their skills and knowledge, thus

enabling them to develop and qualify for higher posts. Such practices create

favorable attitudes towards the organization, which could result in better

adjustment and commitment to one's work and the organization. Thus cooperation

could help reduce employee turnover, absenteeism, accidents, dissatisfactions and

grievances.

- Finally, training aids in the development of individual skills, better methods, new

equipment, and sometimes new work place relationships. Such a process would

also facilitate technological change by updating the versatility of employees.

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Training Methods

Training methods are a means of attaining the desired objective in a learning situation.

Given background work such as identification of training needs, a programme design

and its duration (based on these needs), it then becomes pertinent to analyze and

select the best method or combination of methods, given the several constraints, to

attain the programme objective. The choice of a method several constraints, to attain

the programme objective. The choice of a method would depend on a wide variety of

factors, such as competence of instructors, relevance to the participants, the

programme design, i.e., is a particular method the best vehicle to put across the

contents, and finally its cost implications.

Numerous training methodologies and techniques have been developed over the years

to meet certain specific needs. Each method has structured procedures for conduct

that offer certain advantages in developing certain limited facets of a trainee, and

suffer from some limitations.

In using a particular method, one should know its strengths and weaknesses, given the

situation, and analyze its relevance, its purpose, and if it is useful, how to get the mostout of it. This would provide the rationale of the various training methods. The trainer

should know the rationale of each of the methods before attempting to use any of

them.

Objectives of Training Methods

Training methods have a number of overlapping objectives. As stated earlier, they

have to be chosen in relation to the programme design requirements. The main

objectives of individual training methods could be: demonstration value, developing

interest and finally, appeal to senses. However, more than one, or even all three

objectives may be found in one method.

Demonstration Value

Complete demonstration of job requirements is training of a kind that enables the

trainee to grasp the meaning of ideas, concepts, or procedures visually. Such a method

can be used effectively as an aid to overcome the "breakdown of communication".

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People remember things that they see and hear, much longer than they do information

they receive through talks or reading, alone.

Developing Interest

One of the factors to be kept in mind in choosing a method is its ability to hold and

arouse the interest of the trainee in the learning situation. Much research has been

done in the field to test the effectiveness of various methods. A trainer has to consider

alternative methods of presenting training material to participants in order to stimulate

their interest and facilitate retention of the matter. For instance, if traditionally the

matter has been presented through lectures, perhaps audiovisual methods could be

used, or instead project work be assigned which would mean learning by doing or

researching the subject oneself.

Appeal to Many Senses

The statement that "to see a thing once is better than to hear it a hundred times

emphasizes the inadequacy of words as a means of communication. Experience

indicates that almost 75 per cent of what we imbibe is through the sense of sight and

the rest is through the sense of hearing, touch, smell and taste. From the trainer's point

of view it would be beneficial to utilize as many of the trainee's senses as possible, inorder to improve retention of learning.

Application of these basic objectives or guidelines alone would not be enough. For the

appropriate use of a method, problem analysis and needs identification are also

necessary.

The trainer has to understand and identify the problem area; what is wrong, and where

is the correction needed? He has to examine whether there is a problem with the

manner in which the task is done, i.e., an operational problem, or whether there is a

problem with an individual or individuals, i.e., a human-relations problem.

Secondly, selecting the appropriate method would be dependent on the level of the

trainee in an organizations' hierarchy-is he a shop floor worker, supervisor or a

manager?

Finally, before selecting a training method, the trainer should keep the mind cost

effectiveness.

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Classification of Methods

Depending on the learning outcome, and the process by which it is attained, it is

possible to categorize the various methods into several groups.

On-the-job-oriented Training Methods

In this cluster are included methods whose main objective is centered around the job,

more specifically, learning on the job itself by a variety of methods. They embrace

development through performance on the job, where organizational strength and

constraints, human behavior and technological systems have full and free play.

Methods, which fall into this category, are:

1. On-the-job training.

2. Job rotation.

3. Guidance and counseling.

4. Brainstorming sessions.

5. Syndicate method (working in small groups).

Simulation Methods

Real-life situations are simulated for imparting training. The methods falling in this

category are:

1. Role-play.

2. Case method.

3. Management games.

4. In-basket exercise.

Role Play

The role-play method requires participants to enact roles on the basis of a written

script or an oral description of a particular situation. The enactment process provides

an insight and understanding of the demands and situations of the assigned role,

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thereby facilitating empathy with another's (actual) role. The main emphasis in

management training is in facilitating better understanding of interpersonal problems,

and attitude change. If not handled well, however, it could degenerate a childish

exercise, where, instead of focusing on the problem to be understood, the situation

might be over-dramatized.

Case Method

The case is an actual situation, which is written for discussion purposes. Analysis

would need problem identification, analysis of the situation and of its causes. There

could be several solutions to the problem, and each of these alternatives and their

implications needs to be examined. In the real world, on many occasions, a manager

may not have all the relevant information with him before taking a decision.

Similarly, the case method approximates this reality and in many situations decisions

are taken with limited data, or what is termed decision-making under uncertainty. The

managerial response in such a situation is explored and understood and learning

consists of developing problem-solving skills.

Management Games

The game is built around the model of a business situation and trainees are dividedinto teams representing the management of competing companies. They simulate the

real-life process of taking operation decisions. Decisions taken are analyzed by a

computer, or manually, and a series of the implications of these decisions are fed

back. The game is played in several rounds to take the time dimensions into account.

In-basket exercise

This is a simulation training technique designed around the "incoming mail" of a

manager. A variety of situations are presented which would usually be dealt with by

an executive in his working day. His reactions and responses are taken down in

writing and then analyzed. Feedback on his decisions forces him to re-consider not

only his administrative actions but also his behavioral style.

Knowledge-based methods

In this method of training, an effort is made to expose participants to concepts and

theories, basic principles, and pure and applied knowledge in any subject area.

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Basically, it is aimed at creating an awareness of the knowledge of fundamentals. The

focus is essentially transmission of knowledge which has to be imbibed by the

participants. The methods in this category are:

1. Lectures.

2. Seminars, workshops.

3. Educational training programmes at academic institutes.

4. Programmed instruction in which knowledge is disseminated in book form to be

learnt at the individual's pace, and where feedback on the learning is a given

aspect of the method.

5. Films and TV.

6. Group discussion, especially in combination with some of the above, for

assimilation and integration.

Training Organization

There are several administrative aspects that have to be taken into account before

launching in-house training programme, or nominating participants to external

programmes.

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In-Company/External Programmes

The company needs to formulate its thinking regarding participation in programmes

offered by external agencies like educational management institutes, government

institutions and consultant programmes, vis--vis conducting its own in-house

programmes. Where employee numbers are small, it may not be worthwhile to set up

a training establishment and conduct in-house programmes, but as the numbers

increase, this options may offer a distinct possibility. There is the cost aspect to be

considered: for the cost of sending a participant to an external programme, several

employees could be trained within an organization. Yet, the advantage of an external

programme would be a breath of fresh air through discussions with other participants

and a fresh approach could be brought into the organization and its problems. The

skills and techniques learnt might also be different from those offered by one's own

in-house programmes.

Training Budgets

A training budget for each internal programme has to be prepared, which would

include cost of facilities like training room, food, transport, guest faculty, if any, and

cost of teaching materials. In fact, the cost to the organization should also include thewages and salaries of employee participants who would be temporarily pulled out of

their regular jobs and sent for training. Yet, organizational requirements would

necessitate their jobs being done by someone else. The reason for costing the trainee

employee's salary would be that they would not be making any contribution to the

company during the training period, and that this is an additional burden on the

company's finances.

Evaluation of Training

Evaluation of any activity is important, since in evaluating one tries to judge the

"value or worth of the activity, using the information available".

What is the purpose of evaluation? Evaluation, by bringing to the fore "weaknesses

and failuresstrengths and successes," helps to improve training methods. Evaluation

helps management to answer the following questions

- The relevance of the programmes to the organization's needs-what changes if any

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should be made in existing programmes to realign to the organization's needs.

- Feedback on the choice of areas of training will also need to be examined in the

context of its contributions to the organization's effectiveness.

- Should the money continue to be spent on this activity, or another more relevant

activity that will improve attainment of the organization's objectives?

Reactions from trainees about the training programme can help identify its strengths

and weaknesses. These reactions can be used as a base for the improvement of

programmes, but those evaluating must first be definite about the aspects they are

interested in investigating.

An evaluation of a training method or system must also take into account the

suitability of objectives. "If the objectives were inadequately formulated in the first

place, even a 'good' training programme has really no chance to be effective."

Objectives have to be clear-cut, must relate to needs, and make way for changes.

Objectives cannot be static and need to be re-appraised frequently so that training may

result in improved overall organizational efficiency. Evaluation of objectives helps to

bridge the gap between needs and objectives.

The Evaluation Process

The most useful means of evaluating training are observations, ratings, trainee

surveys and trainee interviews. Observation is concerned with observing the behavior

of people in a certain situation. To be useful, it must be specific, systematic,

quantitative, recorded and expert. Needless to say, observers, must be trained and

have specific ideas about what they are looking for. This is the most direct method of

"assessing the quality of formal training and of identifying deficiencies".

The second method of evaluation is that of ratings. "Various elements of the training

system should be rated independently by several qualified raters. These elements

include trainees, instructors, equipment, materials, training aids and facilities." The

use of rating scales requires supervised practice, as it is easy to commit errors.

The third method is trainee surveys where opinions of the trainees are used for

evaluation. These opinions should not be used independently, since they cannot

always be relied on to be objective.

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The fourth method is trainee interviews, whereby ideas and views that trainees might

not put down on paper can be determined by "skilful questioning". This method

allows for more precise information and details to be obtained and prevents

ambiguity, especially in interpretation.

The final method is that of collecting the observations and recommendations of

instructors through surveys and interviews "to ensure that the system is consistent

with the needs of the implementers of the training". Interviews with instructors will

bring to the surface characteristics that instructors may feel reluctant to put down on

paper.

Is Training The Best Medicine?

Imagine this: A man is having chest pains. He rush as to his doctor, tells him he is

having a heart attack, and demands that he perform open-heart surgery. He obligingly

agrees. It is not until after a great deal of pain and expense that he discovers it was

only in digestion.

When it comes to training, a similar situation happens all the time. If scrap rates are

too high, productivity is too low, and employees neglect to follow standard quality

procedures, they must need more training. Before rushing into the pain and expense of

interrupting production to send them off to a seminar it is necessary to make sure that

training is the proper solution.

Just as a doctor must understand the cause of a patients symptoms before he can

attempt a cure, one needs to know why employees are not meeting the companys

expectations before taking action. Thats where a training-needs analysis will help. It

tells how well employees are doing their jobs, where they could use some

improvement and how that improvement can best he achieved. Done correctly, it cansave the company from wasting a lot of time and money on inappropriate training

programs.

Gathering the information

To do a valid training-needs analysis, one needs to gather as much objective data

about employee performance as possible. There are many ways to collect this

information, including:

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Casual conversations

Formal interviews

Direct observation

Work samples

Written records

Surveys

Tests

Focus groups

A professional trainer can be hired to perform an analysis but its not just a technique

for trainers. Everybody should be trained in this simple process. Its a supervisors or

a managers job to make sure people can do their jobs. To do training needs analysis

the following steps should be followed:

Study current performance: Before tying to change anything, its essential to know

what is already happening. What skills and knowledge do employees already have?

What tasks are they performing on their daily jobs?

Define ideal performance: what standard of performance is necessary for the

business and the employees to be a success? What tasks must they do? What level of

accuracy or productivity should they achieve? What skills and knowledge must they

have?

Find the gap: What is the difference between the definition of ideal performance and

what the employees are currently doing? Are there any areas that arent functioning as

well as they should? Where are there opportunities for improvement? This is theperformance gap that the company is trying to fill. One must look for problems or

opportunities that may occur in future as well as ones that already exist.

Identify the cause: Why are workers not working up to standard? Have they ever

performed the job correctly? Where and when do the problems occur? Has anything

changed recently that might have instigated the problem? Compare best and worst

performers to find the differences in what they do.

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When these steps have been completed one should be ready to make diagnosis, but it

must be remembered that training is not the only medicine for ailing performance.

Although it is often mistakenly applied as a cure- all, the only problem that training

can solve is a lack of skills and knowledge. Do employees know how to do the job?

Could they do it if their lives depended on it? If so, probably there is no training

problem. There are many reasons why a worker might not be doing his job correctly,

including unclear expectations, insufficient feedback, lack of incentive and adverse

working conditions. These are all management problems that can only be improved

by management changes.

Too often, people see the gap and they want to just leap right in and fix it. The key is

not to jump to the solution, which is assumed to be training. Understanding thesituation is the first step. Then, once one understands the situation one can think about

why (The problem exists). Only if its because (employees) lack skills and knowledge

should training be considered as a solution.

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TRAINING & TRAINING NEED IDENTIFICATION

Training: After the best applications for the available positions have been selected,

the staffing process is almost complete. Now the retail firm must give the selectedapplications the knowledge and skills they need to be productive employees. The

process of bringing a new hire up to speed is called employee training.

Knowledge of companys policies and procedures and of the stores products and

services is basic to all positions. So are an understanding of the stores customers

and their needs and desires, knowledge of competitive retail offerings, and basic

information about dress codes, sick leave, parking, and scheduling.

Basic information about the firm usually is spelled out in the employees handbook.The firm should make the employee handbook available to new employees as soon as

they are hired. The Whole Foods Market, whose highly regarded handbook was

mentioned earlier, includes key aspects of the firms strategic plan. Employees of the

firm found the material so helpful that they suggested new hires take a quiz on the

information to determine whether they understand it. Whole Foods follows the legally

recommended practice of keeping a file of signed forms indicating that employees

have received and have had the opportunity to read and understand the company

handbook.

The difference between the knowledge and skills the job requires and those the new

hire possesses will depend on the individual. A person who has worked for the store

in the recent past will need little training, whereas someone with no experience in

retailing will needs a great deal. To avoid moving too quickly for some employees

and too slowly for other, some firms have structured their training programs in units

so that materials can be skipped or repeated as necessary. The key to successfultraining is to ensure that new employees get the information they need early in their

careers. Unfortunately, reduced profits and high employee turnover have forced some

companies to reduce the time and money devoted to training a move that almost

guarantees human resource problems.

Training programs can use a variety of educational tools. Lectures, videotapes,

manuals, role playing, and computerized exercises can be useful. The key to

determine the type of information employees need to learn and then match that need

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with the most appropriate learning tools. A lecture or videotape may be the best way

to communicate the history of the organisation, whereas role playing may be more

effective in teaching selling and negotiation skills.

Compares initial employee training with the ongoing activity of keeping employees

skills up to date. As the figure shows, employee training is designed to increase the

new employees skills to the point where he or she can perform on the job effectively.

The size of the gap between the incoming employees skills and the skills needed to

perform the job will vary, as will the amount of time needed to close the gap.

However, once that gap has been closed, the staffing function is still not complete.

Over time employees will need new knowledge and skills as job responsibilities,

products, technologies, and customer needs change.

Fig.: The Role of Training and Development in Fighting the Obsolescence of

Human Resource

Employees Tenure with the Firm

This ongoing process of the employee development is crucial to the retail firms

ability to compete. A firm that fails to design and implement an employee

development program will soon face employees obsolescence- the outdating of

employees knowledge and skills to the point where employees can no longer perform

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LevelRequired for

Effective

Performance

EmployeesActual Level

EmployeeDevelopm

ent

Employee

Training

Knowledgea

ndSkill

Level


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effectively. A series of activities are needed to keep employees current. The ideal

situation occurs when new hires get all skills they need through employee training and

then receive enough employee development to minimize the gap between their skills

and the requirements of the job.

Employee development program can include books and magazine subscriptions,

seminars, short course, college course, and advanced degrees, as well as in-store

meetings. Many companies fund part or all of the cost of employee development, but

the employee must shoulder part of the responsibility for staying up to date.

Increasingly, companies are looking for employees who are true students of the retail

industry. As knowledge and technology continue to advance rapidly, fighting

employee obsolescence will require diligence on the part of both employee andemployer.

While it is essential to have a training philosophy, policy and standards, it is

impossible to judge whether our training is in accordance with these if there is no

clear definition of training.

For example, a company might have a target to give each of its employees five days

of training every year. Depending on what is considered to be training, one company

might say it is providing three days of training and another company might claim nine

days- even though both companies employees have received exactly the same

amount of training and development.

An amazing number of activities might be considered as training. The following is

just a selection:

Classroom (trainer led),

Distance learning,

Computer-based training,

On-the-job training,

External courses,

Large-scale workshops,

Attendance at seminars,

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Attending conferences,

Attending communications meetings,

Evening classes,

Further education,

Assignments,

Participating in quality circles,

Reading articles and books.

Some of the above activities, such as classroom training and computer-based training,

would always be considered as training. Activities such as exhibitions, conferences,

assignments and reading would not usually be classified as training.

Clearly on-the-job training should be considered as training, but surely not all of the

time spent under supervision should qualify for the employees hours of training. The

conclusion we came to was that the time spent on producing usable output should not

be included in the training time.

In Europe and the United States, participating in quality circles would probably not beconsidered to be training because the prime purpose of a quality circle is thought to be

solving the companys problems. Any learning that comes about would be though to

be secondary. In fact, this is another indication of how Western culture misunderstood

Japans quality revolution, because one of Japans main aims in starting quality circle

activities was to enable the factory workers to study together and teach themselves

quality control.

Without a definition of training, deciding whether an activity should be recognised as

training becomes very subjective. The working definition of training that I use is:

Training is the transfer of defined and measurable knowledge or skills/

From this definition it can be seen that training activities should have objectives and a

method for checking whether these objectives have been met.

Training, defined in this way, deals only with changes in behaviour and knowledge.

Some definitions include changes of attitude as part of training. I have not included

attitude change within the definition because, apart from being incredibly difficult to

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measure, it is the environment and culture of a important part to play in this, an can

help create the environment in which attitudes can change, but training alone will not

change anybodys long-term attitude.

Many different attempts have been made to define what constitutes a training activity,

and these all vary depending on the definition of training that is used. Having

agreement on a definition of training is more important than which of the many good

definitions you decides to use. This allows you to be aligned within your own

company, and to make sensible comparisons with other companies.

If you have not already done so, this would probably be a good time to consider

which activities in your company should be considered as training.

Training activities are those activities which are paid for by employers and take place

in accordance with a programme which:

Has pre-determines objective,

Specifies the teaching methods,

Specifies the personnel to be used,

Has an implementation plan,

Assess the results,

Is given in premises separate from the production area unless it includes practical

training.

Can include correspondence courses, safety and security training and training

outside of work hours.

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A useful approach for understanding the training process is to consider it as a system

whose boundaries interact with the rest of the business. Training needs are identified,

training is provided to meet the needs, the output is compared to the requirements and

any necessary changes are made to the system to obtain the desired output.

While this approach helps you understand how training processes operate, it does put

training at the centre of the universe. The effect of this training-centred approach is

that the business will see training either as a panacea for all problems or as having no

direct relevance to the business. Neither of these impressions will help you manager

the training process effectively.

Training as a system whose boundaries interact with the business

A learning organisation is one which facilitates the learning of all its members and

continuously transforms itself to achieve superior competitive performance.

Figure shows a system that is displaying single-loop learning. The output of the

system is compared to a set of standards and adjustments are made to counterbalance

any deviations from the standards. More advanced learning organisation would have

progressed to double-loop learning where the standards themselves are challenged.

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THE BUSINESS

Training as part of the business system

The concept of the learning organisation does not replace training. As you can see

from figure, training is a vital component of learning. It is important not to overlook

this fact, as there have been examples of organisation that they have, to their cost,

overlooked the basic of training.

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Assessment

Businessstrategy

Actions

Training

CustomerRequirements

Organizational

learning

Individual

learning

Experience

Training as part of the learning organisation

Training

Education

Business Process

OrganisationDevelopment


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Training Strategies

The training process is a cycle that you need to manager continuously. You respond to

needs. You ensure that the training is aligned with the business. The cycle time is

short term-usually no longer than a year. Managing the training process is essentially

operational or tactical.

If we always manage training at this level we are in danger of being reactive rather

than proactive: starting and stopping training programmes or perhaps even failing to

deliver anything.

We need to have a clear idea of how we are going to deliver training over a longer

period. Training needs analysis and training policies provide the what and the howmuch. A training strategy provides the long-term orientation.

To put a training strategy together you should have a vision of what training in your

organisation should look like in, say, five years. You should then map out the years

and the key milestones along the way. When you are putting a training strategy

together you should ask yourself the following questions:

How much training will you need to do each year?

What type of course will you need to provide?

What types of people will you put on what type of course?

What resources will you need in terms of space and trainers?

Who will you use to do your training?

Will you use fill-time, part-time or consultant trainers?

What delivery methods will you use?

How will changes in technology affect delivery methods?

What business, social and environmental changes are likely to take place?

Every time you cycle through the training process you should re-examine your

training strategy to see if it still holds up in the light of new training requirements and

corporate policies. This is an example of double-loop learning. Try to make your

strategy as robust as possible, and only change strategies when there are significant

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business, social and environmental changes. If your strategy is really robust you will

find that you can respond to many changes by adjusting your tactics rather than

throwing aways your strategy.

It is difficult but essential to find the right balance between constantly chopping and

changing strategies, and sticking with a useless and outmoded strategy.

Here I will be covering two steps of the training process:

identify needs,

Evaluate needs.

Identifying training needs is the starting point for managing the training process. Yet

this is often one of the last steps to be considered seriously probably because a

proper needs analysis is both difficult and time consuming.

Initially, it might be quicker and easier to forget about analyzing the needs and have

your customers pick and choose from a catalogue, but this will ultimately lead to

frustration and inefficiency.

Identifying training needs is not just a matter of finding the need and them simply

satisfying it. There are often conflicting requirements from different interests within

the company. The development needs of the individual have to organisation. These

needs, once identified, have to be matched to appropriate training courses.

Sometimes there is a feeling that training will always be the solution for every

identified development problem. However, there is not point in providing training if

training is not an appropriate solution. When this is the case the training manager has

to be brave enough to say that it is not appropriate and creative enough to suggest

alternative solutions.

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NEEDS IDENTIFICATION

Needs identification has to balance corporate demands, policies and strategies as well

as individual and organisational requirements. Figure outlines a process that balancesthese requirements. It shows that corporate policies and strategies should be the

umbrella under which individual and organisational training needs are identified.

This helps to ensure alignment of training activities with the business direction.

Collect corporate policies and strategies

Corporate policies and strategies form the boundaries within which all training and

development activities should take place.

There are two ways in which corporate policies and strategies give rise to training

needs. The first is directly through mandatory training. The other way is through

indirect influence. When an organisation outs its training plan together it should take

account of both the business plan and individual development needs. This is where the

process often breaks down and even the indirect influences start to disappear.

Policy deployment which is a structured method of Cascading corporate goals and

strategies through the company is a powerful method of ensuring that training needs

are identified within the context of the company s business goals

We discussed the importance of alignment and of getting the corporate basic right. If

this has been done well, you will have no difficulty in collecting corporate policies

and strategies. You will then be able to prepare a training plan that supports the

direction of the business.

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If your company is confused about its strategies, or does not communicate them

effectively, you might as well as miss this step out completely and be resigned to

providing training that cannot completely support the business.

Start by reading your companys policies on training and development, reviewing the

companys vision and understanding the current goals and objectives.

Identify mandatory training

Company policy dictates which employee groups are required to undergo prescribed

courses. Some courses, such as induction training and total quality management,

are an integral part of companys culture so all new employees have to attend this

training.

Company strategy may also require all personnel to go through specified forms of

training in a relatively short period. Examples of this kind of training are:

equal opportunities,

empowerment,

harassment,

financial responsibility,

new measurement systems (e.g. economic value added),

46

Collect corporate policies and strategies

Identify business needs

Identify

mandatory

training

Identify individual

needs(appraisals, requests,

counseling)

Identify

departmental needs

and skills for each

job

Identify affected individuals

Enter potential needs on training records

Produce training requirement reports


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New legal requirements.

Compulsory courses will usually be aligned with the company direction because they

have been developed centrally for company-wide implementation.

Identify business needs

Policy deployment and the training forum are two essential tools for identifying

business needs. Policy deployment and the training forums role in defining the basics

of the training process are both covered.

Policy deployment is the process by which a companys strategies are communicated

to its organisations. An organisation then determines what it need to achieve by

understanding its part in the company' strategy. The what should be measurable andtake the form of goals or objectives.

Once an organisation has determined what it has to achieve, it then has to decide how

these objective will be met. Once the how has been identified it is possible to

determine the skills and knowledge the organisation will require.

The training forums role at this stage of the process is to:

provide a forum for identifying an organisations business needs,

ensure that training plans are aligned with the companys direction,

Identifying opportunities for sharing or exchanging resources.

The training forum comprises training managers and other interested parties who meet

to discuss training plans. They also identify opportunities for sharing resources. A

forum is particularly useful when there are several, dispersed training departments

within a company.

The forum would normally need to meet twice a year: the first time to understand

both corporate requirements and local issues; the second meeting to review draft

training plans. Figure shows typical timings for the two training forum meetings.

MAY JULY/AUGUST OCTOBER

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ForumMeeting

(Pre-

planning)

ForumMeeting(Plan

review)

Departmental trainingplans prepared Training plan

prepared

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Requirements

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Schedule for training forum meetings

Timing of these forum meetings is critical and depends on which month is the start of

the organisations financial year. The output of the second meeting needs to be

available for inclusion in the annual business plan.

Individual development plans should be completed before the draft department

training plans are put together. The training plans will be based on guesswork if the

development plans are not available. If the development plans are available too early,

the training plan could be out of time by up to six months.

Identify individual needs

Identifying training needs via business requirements is a top-down approach which

satisfies the need for training to be in alignment with the business direction. If we

were only to use this approach, the coverage would be too broad to pick up individual

development requirement. We also need to consider bottom-up training requests and

to make sure that both sources of training requirements complement each other.

Individual training requirements come either from direct requests or as a result of

appraisal discussions.

Because these development plans are always up to date, the training needs analysis

can be done at any time of the year. The training administrator can request copies of

the current development plan when the needs analysis has to be done.

Identify departmental needs

So far we have seen how training departments can be aligned with each other and

with the corporate business direction. We have also seen how individual development

requirements can be identified. We now need to see how the detailed departmental

training needs are identified.

The processes already described should ensure that the department's raining demands

are based on corporate or company business needs and requirements. The individuals

requirements give us a picture of the demand within a department but not necessarily

the need. in fact, the process for identifying departmental needs is very similar to the

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process for identifying need at the corporate level. Each department should assess

where it is. The department should have a vision, a mission and a strategy for

realizing the vision.

Identify skills and training required for each job

The department's mission, and the work processes the company uses, determine the

jobs the department needs to produce its products and services. Each job has an

associated set of skills. New jobs required new skills.

In its simplest form, identifying the training required for each job involves:

1. Identifying the skills required to do a job.

2. Comparing the required skills to the current skills level of the people who will be

doing the job.

It is training's function to bridge the gap between current and required skills.

The skills and knowledge required for every job should be documented. You should

also document the courses that a representative person will need to reach the required

skills level. This makes it easier to select the correct courses. A representative person

is the type of person you would normally employ to do the job.

The basis of identifying and documenting the required skills is the 'job description'. a

job description should include the tasks that have to be performed and the outputs that

have to be produced by the job holder. Outputs are products or services that ate

handed on to someone else. An output should have a standard or specification

attached to it so that the quality of the output can be measured.

The next step is to prepare a 'person specification' from the job description. A person

specification describes the ideal person to fill the job. It is a profile of the requiredpersonal skills and characteristics. These skills and characteristics are also known as

competencies.

For job descriptions which cover a large number of employees it is worth producing a

'training specification matrix'. This matrix describes the training courses that correlate

to the skills described in the person specification.

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You shouldn't be surprised if all this sounds rather familiar. It is exactly the same as

the recruitment processes the only difference being that we are developing existing

people to fit the person specification rather than recruiting the 'ideal' person.

If you are recruiting to fill a vacancy, you may not be able to find anybody who fits

the person description. You might also want to give people who do not yet meet the

person specification a chance to work at a higher level. In such cases you will need to

provide additional training to bring these people to the required level.

Identify affected individuals

Arising out of your analysis of corporate policies, mandatory training, business needs

and job skills requirements, you will be able to identify which groups of employees

will need what training. For example, all new managers will need training on the

basics of management, and all electronics assembly people will need training on

electrostatic protection.

Effective training processes need to be managed at the level of the individual, so the

next step is to identify those individuals who are part of the group which needs the

training. This task is make a great deal simpler by computerized personnel and

training records. If each person's job is given a job code, the computer can print out a

report on the people who have a particular type of job and have yet to receive the

required training. This task if make even easier if the personnel and training records

are part of the same database. If you have separate records, you will need to update

the training database every time someone joins, leaves or changes jobs.

Enter potential needs on training records

A training record should not only list the courses a person has attended but also the

training a person needs. It is easier to prepare a training plan if the record gives a

range of dates for when the training is required. The potential need can be in the form

of either a course or a skill.

It is important that the training record is a live reflection of current training

requirements. It should be revised any time a new training requirement is identified.

This can be after appraisal, when a training request form is received or after an

individual has attended an assessment centre. This means that an up-to-date training

plan can be pulled off the system at any time of the year.

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Produce training requirement reports

A training record shows the training that individuals have completed and the training

that they need to do. The next step is to sift through all the training requirements so

you can evaluate the needs and estimate the amount of training that needs to be done.

This can be done manfully, but it is much quicker if you have computerized training

records.

A computer can produce training requirement reports that list:

All the people who have requested a particular course,

All the people who need a particular skill,

The amount and type of training requested by a particular organization.

Needs evaluation

All training requests need to be validated to ensure the training is both appropriate and

necessary. The amount of effort and time required to valida

Documents

Gopal Final