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INTRODUCTION OF TRAINING & DEVELOPMENT

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that

randomness is reduced and learning or behavioral change takes place in structured format.

TRAINING AND DEVELOPMENT DEFINED

It is concerned with the structure and delivery of acquisition of knowledge to improve the

efficiency and effectiveness of organization. It is concerned with improving the existing skills

and exploring the potential skills of the individual i.e. upgrading the employees’ skills and

extending their knowledge. Therefore, training is a key to optimizing utilization human

intellectual technological and entrepreneurial skills

Training and Development referred to as:

• Acquisition and sharpening of employees capabilities that is required to perform various

obligations, tasks and functions.

• Developing the employee’s capabilities so that they may be able to discover their potential

and exploit them to full their own and organizational development purpose.

• Developing an organizational culture where superior-subordinate relationship, team work,

and collaboration among different sub units are strong and contribute to organizational

wealth, dynamism and pride to the employees.

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Development defined

It helps the individual handle future responsibilities, with less emphasis on present job duties.

Introduction of training

It is a learning process that involves the acquisition of knowledge, sharpening of skills,

concepts, rules, or changing of attitudes and behaviors to enhance the performance of

employees.

INPUTS IN TRAINING AND DEVELOPMENT

Any training and development programme must contain inputs which enable the participants

to gain skills, learn theoretical concepts and help acquire vision to look into the distant future.

Skills: Training is imparting skills to employees. A worker needs skills to operate machines,

and use other equipments with least damage and scrap. This is a basic skill without which the

operator will not be able to function. Employees, particularly supervisors and executives, need

interpersonal skills.

Education: The purpose of education is to teach theoretical concepts and develop a sense of

reasoning and judgment.

Development: It is less skill-oriented but stresses on knowledge. Knowledge about business

environment, management principles and techniques, human relations, specific industry

analysis is useful for better management of a company.

Ethics: There is need for imparting greater ethical orientation to a training and development

programme. Ethical attitude help managements make better decisions which are in the

interests of the public, the employees and in the long term-the company itself.

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Attitudinal Changes: Attitude represents feelings and beliefs of individuals towards others.

Attitude affects motivation, satisfaction and job commitment. Negative attitude need to be

converting into positive attitude. Attitude must be changed so that employees feel committed

to the organization, are motivated for better performance, and derive satisfaction from their

jobs and the work environment.

Decision making and problem solving skills: It focus on methods and techniques for

making organization decision-making and solving work related problems.

TRAINING AND DEVELOPMENT OBJECTIVES  

The principal objective of training and development division is to make sure the availability

of a skilled and willing workforce to an organization. In addition to that, there are four other

objectives: Individual, Organizational, Functional, and Societal. 

 

Individual objectives – help employees in achieving their personal goals, which in turn,

enhances the individual contribution to an organization.  

Organizational Objectives – assist the organization with its primary objective by bringing

individual effectiveness.  

Functional Objectives – maintain the department’s contribution at a level suitable to the

organization’s needs.  

Societal Objectives – ensure that an organization is ethically and socially responsible to the

needs and challenges of the society.

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IMPORTANCE OF TRAINING AND DEVELOPMENT 

It helps to develop human intellect and an overall personality of the employees.  

 

• Productivity – Training and Development helps in increasing the productivity of the

employees that helps the organization further to achieve its long-term goal. 

 

• Team spirit – Training and Development helps in inculcating the sense of team work,

team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the

employees.  

• Organization Culture – Training and Development helps to develop and improve the

organizational health culture and effectiveness. It helps in creating the learning culture within

the organization.   

• Organization Climate – Training and Development helps building the positive

perception and feeling about the organization. The employees get these feelings from leaders,

subordinates, and peers.  

• Quality – Training and Development helps in improving upon the quality of work and

work-life.

• Healthy work-environment – Training and Development helps in creating the healthy

working environment. It helps to build good employee, relationship so that individual goals

aligns with organizational goal.  

• Health and Safety – Training and Development helps in improving the health and safety

of the organization thus preventing obsolescence.  

• Morale – Training and Development helps in improving the morale of the work force. 

 

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• Image – Training and Development helps in creating a better corporate image. 

 

• Profitability – Training and Development leads to improved profitability and more

positive attitudes towards profit orientation.  

• Training and Development aids in organizational development i.e. Organization gets more

effective decision making and problem solving. It helps in understanding and carrying out

organizational policies  

• Training and Development helps in developing leadership skills, motivation, loyalty, better

attitudes, and other aspects that successful workers and managers usually display. 

• Optimum Utilization of Human Resources – Training and Development helps in

optimizing the utilization of human resource that further helps the employee to achieve the

organizational goals as well as their individual goals.  

• Development of Human Resources – Training and Development helps to provide an

opportunity and broad structure for the development of human resources’ technical and

behavioral skills in an organization. It also helps the employees in attaining personal growth.

Development of skills of employees – Training and Development helps in increasing

the job knowledge and skills of employees at each level. It helps to expand the horizons of

human intellect and an overall personality of the employee

MODELS OF TRAINING

Training is a sub-system of the organization because the departments such as, marketing &

sales, HR, production, finance, etc depends on training for its survival. Training is a

transforming process that requires some input and in turn it produces output in the form of

knowledge, skills, and attitudes.

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THE TRAINING SYSTEM

The three model of training are:

1. System Model

2. Instructional System Development Model

3. Transitional model

SYSTEM MODEL TRAINING

The system model consists of five phases and should be repeated on a regular basis to make

further improvements. The training should achieve the purpose of helping employee to

perform their work to required standards. The steps involved in System Model of training are

as follows:

1. ANALYZE and identify the training needs i.e. to analyze the department, job, employees

requirement, who needs training, what do they need to learn, estimating training cost, etc The

next step is to develop a performance measure on the basis of which actual performance

would be evaluated.

2. DESIGN and provide training to meet identified needs. This step requires developing

objectives of training, identifying the learning steps, sequencing and structuring the contents

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3. DEVELOP- This phase requires listing the activities in the training program that will

assist the participants to learn, selecting delivery method, examining the training material,

validating information to be imparted to make sure it accomplishes all the goals &

objectives.

4. IMPLEMENTING is the hardest part of the system because one wrong step can lead

to the failure of whole training program.

5. EVALUATING each phase so as to make sure it has achieved its aim in terms of

subsequent work performance. Making necessary amendments to any of the previous

stage in order to remedy or improve failure practices

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TRANSITIONAL MODEL

Transitional model focuses on the organization as a whole. The outer loop describes the

vision, mission and values of the organization on the basis of which training model i.e.

inner loop is executed.

VISION – focuses on the milestones that the organization would like to achieve after the

defined point of time. A vision statement tells that where the organization sees itself few

years down the line. A vision may include setting a role mode, or bringing some internal

transformation, or may be promising to meet some other deadlines.

MISSION – explain the reason of organizational existence. It identifies the position in the

community. The reason of developing a mission statement is to motivate, inspire, and

inform the employees regarding the organization.The mission statement tells about the

identity that how the organization would like to be viewed by the customers, employees,

and all other stakeholders.

VALUES – is the translation of vision and mission into communicable ideals. It reflects

the deeply held values of the organization and is independent of current industry

environment. For example, values may include social responsibility, excellent customer

service, etc

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The mission, vision, and values precede the objective in the inner loop. This model

considers the organization as a whole. The objective is formulated keeping these three

things in mind and then the training model is further implemented

INSTRUCTIONAL SYSTEM DEVELOPMENT (ISD) MODEL

Instructional System Development model was made to answer the training problems. This

model is widely used now-a-days in the organization because it is concerned with the

training need on the job performance. Training objectives are defined on the basis of job

responsibilities and job description and on the basis of the defined objectives individual

progress is measured. This model also helps in determining and developing the favorable

strategies, sequencing the content, and delivering media for the types of training

objectives to be achieved. The Instructional System Development model comprises of five

stages:

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1. ANALYSIS – This phase consist of training need assessment, job analysis, and target

audience analysis.

2. PLANNING – This phase consist of setting goal of the learning outcome, instructional

objectives that measures behavior of a participant after the training, types of training

material, media selection, methods of evaluating the trainee, trainer and the training

program, strategies to impart knowledge i.e. selection of content, sequencing of content,

etc

3. DEVELOPMENT – This phase translates design decisions into training material. It

consists of developing course material for the trainer including handouts, workbooks,

visual aids, demonstration props, etc, course material for the trainee including handouts of

summary.

4. EXECUTION – This phase focuses on logistical arrangements, such as arranging

speakers, equipments, benches, podium, food facilities, cooling, lighting, parking, and

other training accessories.

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5. EVALUATION – The purpose of this phase is to make sure that the training program

has achieved its aim in terms of subsequent work performance. This phase consists of

identifying strengths and weaknesses and making necessary amendments to any of the

previous stage in order to remedy or improve failure practices.

The ISD model is a continuous process that lasts throughout the training program. It also

highlights that feedback is an important phase throughout the entire training program. In

this model, the output of one phase is an input to the next phase.

PROCESS OF TRAINING

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TRAINING EVALUATION

TRAINING NEED ANALYSIS

TRAINING

DESIGN

TRAINING IMPLEMENTA

TION

TRAININGPROCESS

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TRAINING NEED ANALYSIS (TNA)/TRAINING NEED IDENTIFICATION (TNI)

An analysis of training need is an essential requirement to the design of effective training. The

purpose of training need analysis is to determine whether there is a gap between what is

required for effective performance and present level of performance.

Training Need arises at three levels:

Organizational level

Individual level

Operational level

Corporate need and training need are interdependent because the organization performance

ultimately depends on the performance of its individual employee and its subgroup.

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Organizational level – Training need analysis at organizational level focuses on strategic

planning, business need, and goals. It starts with the assessment of internal environment of the

organization such as, procedures, structures, policies, strengths, and weaknesses and external

environment such as opportunities and threats. After doing the SWOT analysis, weaknesses

can be dealt with the training interventions, while strengths can further be strengthened with

continued training. Threats can be reduced by identifying the areas where training is required.

And, opportunities can be exploited by balancing it against costs. For this approach to be

successful, the HR department of the company requires to be involved in strategic planning.

In this planning, HR develops strategies to be sure that the employees in the organization have

the required Knowledge, Skills, and Attributes (KSAs) based on the future KSAs

requirements at each level.

Individual level – Training need analysis at individual level focuses on each and every

individual in the organization. At this level, the organization checks whether an employee is

performing at desired level or the performance is below expectation. If the difference between

the expected performance and actual performance comes out to be positive, then certainly

there is a need of training. However, individual competence can also be linked to individual

need. The methods that are used to analyze the individual need are:

• Appraisal and performance review

• Peer appraisal

• Competency assessments

• Subordinate appraisal

• Client feedback

• Customer feedback

• Self-assessment or self-appraisal

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Operational level – Training Need analysis at operational level focuses on the work that is

being assigned to the employees. The job analyst gathers the information on whether the job

is clearly understood by an employee or not. He gathers this information through technical

interview, observation, psychological test; questionnaires asking the closed ended as well as

open ended questions, etc. Today, jobs are dynamic and keep changing over the time.

Employees need to prepare for these changes. The job analyst also gathers information on the

tasks needs to be done plus the tasks that will be required in the future. Based on the

information collected, training Need analysis (TNA) is done.

Benefits of need assessment

Training programs are designed to achieve specific goals that meet felt needs. There are many

benefits of need assessment:

1. Trainers may be informed about the broader need of the trainees.

2. Trainers are able to pitch their course inputs closer to the specific needs of the trainees.

3. Assessment makes training department more accountable and more clearly linked to other

human resource activities, which make the training programs easier to sell to line

managers.

TRAINING-DESIGN

 The design of the training program can be undertaken only when a clear training objective

has been produced. The training objective clears what goal has to be achieved by the end of

training program i.e. what the trainees are expected to be able to do at the end of their

training. Training objectives assist trainers to design the training program. 

 

The trainer – Before starting a training program, a trainer analyzes his technical,

interpersonal, judgmental skills in order to deliver quality content to trainers. 

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The trainees – A good training design requires close scrutiny of the trainees and their

profiles. Age, experience, needs and expectations of the trainees are some of the important

factors that affect training design.

Cost of training – It is one of the most important considerations in designing a training

programme. A training programme involves cost of different types. These may be in the form

of direct expenses incurred in training, cost of training material to be provided, arrangement

of physical facilities and refreshment, etc. Besides these expenses the organization has to bear

indirect cost in the form of loss of production during training period. Ideally, a training

programme must be able to generate more revenues than the cost involved. 

Training climate – A good training climate comprises of ambience, tone, feelings, positive

perception for training program, etc. Therefore, when the climate is favorable nothing goes

wrong but when the climate is unfavorable, almost everything goes wrong. 

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TRAINING-DESIGN

Trainees’ learning style – the learning style, age, experience, educational background of

trainees must be kept in mind in order to get the right pitch to the design of the program. 

Training strategies – Once the training objective has been identified, the trainer translates

it into specific training areas and modules. The trainer prepares the priority list of about what

must be included, what could be included. 

 Training topics – After formulating a strategy, trainer decides upon the content to be

delivered. Trainers break the content into headings, topics, ad modules. These topics and

modules are then classified into information, knowledge, skills, and attitudes.  

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Sequence the contents – Contents are then sequenced in a following manner: 

• From simple to complex 

• Topics are arranged in terms of their relative importance 

• From known to unknown 

• From specific to general 

• Dependent relationship 

 Training tactics – Once the objectives and the strategy of the training program becomes

clear, trainer comes in the position to select most appropriate tactics or methods or techniques.

The method selection depends on the following factors: 

• Trainees’ background 

• Time allocated 

• Style preference of trainer 

• Level of competence of trainer 

• Availability of facilities and resources, etc 

 Support facilities – IT can be segregated into printed and audio visual. The various

requirements in a training program are white boards, flip charts, markers, etc. 

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Constraints – The various constraints that lay in the trainers mind are: 

• Time 

• Accommodation, facilities and their availability 

• Furnishings and equipments 

• Budget 

• Design of the training, etc

TRAINING IMPLEMENTATION

To put training program into effect according to definite plan or procedure is called training

implementation. Training implementation is the hardest part of the system because one wrong

step can lead to the failure of whole training program. Even the best training program will fail

due to one wrong action. Training implementation can be segregated into:

• Practical administrative arrangements

• Carrying out of the training

Once the staff, course, content, equipments, topics are ready, the training is implemented.

Completing training design does not mean that the work is done because implementation

phase requires continual adjusting, redesigning, and refining. Preparation is the most

important factor to taste the success. Therefore, following are the factors that are kept in mind

while implementing training program:

The trainer – The trainer need to be prepared mentally before the delivery of content.

Trainer prepares materials and activities well in advance. The trainer also set grounds before

meeting with participants by making sure that he is comfortable with course content and is

flexible in his approach.

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Physical set-up – Good physical set up is pre-requisite for effective and successful training

program because it makes the first impression on participants. Classrooms should not be very

small or big but as nearly square as possible. This will bring people together both physically

and psychologically. Also, right amount of space should be allocated to every participant.

Establishing rapport with participants – There are various ways by which a trainer can

establish good rapport with trainees by:

• Greeting participants – simple way to ease those initial tense moments

• Encouraging informal conversation

• Remembering their first name

• Pairing up the learners and have them familiarized with one another

• Listening carefully to trainees’ comments and opinions

• Telling the learners by what name the trainer wants to be addressed

• Getting to class before the arrival of learners

• Starting the class promptly at the scheduled time

• Using familiar examples

• Varying his instructional techniques

• Using the alternate approach if one seems to bog down

Reviewing the agenda – At the beginning of the training program it is very important to

review the program objective. The trainer must tell the participants the goal of the program,

what is expected out of trainers to do at the end of the program, and how the program will run.

The following information needs to be included:

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• Kinds of training activities

• Schedule

• Setting group norms

• Housekeeping arrangements

• Flow of the program

• Handling problematic situations

In general programme implementation involves action on the following lines:

Deciding the location and organizing training and other facilities.

Scheduling the training programme.

Conducting the programme.

Monitoring the progress of the trainees.

TRAINING EVALUATION

The process of examining a training program is called training evaluation. Training evaluation

checks whether training has had the desired effect. Training evaluation ensures that whether

candidates are able to implement their learning in their respective workplaces, or to the

regular work routines.

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Purposes of Training Evaluation

The five main purposes of training evaluation are:

Feedback: It helps in giving feedback to the candidates by defining the objectives and linking

it to learning outcomes.

Research: It helps in ascertaining the relationship between acquired knowledge, transfer of

knowledge at the work place, and training

Control: It helps in controlling the training program because if the training is not effective,

then it can be dealt with accordingly.

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Power games: At times, the top management (higher authoritative employee) uses the

evaluative data to manipulate it for their own benefits.

Intervention: It helps in determining that whether the actual outcomes are aligned with the

expected outcomes.

Functions of evaluation:

There are basically two functions of evaluation:

1. Qualitative evaluations is an assessment process how well did we do?

2. Quantitative evaluation is an assessment process that answers the question How much did

we do?

Principles of Training Evaluation:

Training need should be identified and reviewed concurrently with the business and

personal development plan process.

a) Evaluation must be continuous.

b) Evaluation must be specific.

c) Evaluation must be based on objective methods and standards.

d) There should be correlation to the needs of the business and the individual.

e) Organizational, group and individual level training need should be identified and

evaluated.

f) Techniques of evaluation should be appropriate.

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g) The evaluation function should be in place before the training takes place.

h) The outcome of evaluation should be used to inform the business and training process.

Need of evaluation of Training:

Training cost can be significant in any business. Most organizations are prepared to incur

these cost because they expect that their business to benefit from employees development and

progress. Whether business has benefited can be assessed by evaluation training.

There are basically four parties involved in evaluating the result of any training. Trainer,

Trainee, Training and Development department and Line Manager.

The Trainee wants to confirm that the course has met personal expectations and satisfied any

learning objectives set by the T & D department at the beginning of the programme.

The Trainer concern is to ensure that the training that has been provided is effective or not.

Training and Development want to know whether the course has made the best use of the

resources available.

The Line manager will be seeking reassurance that the time hat trainee has spent in attending

training results in to value and how deficiency in knowledge and skill redressed.

The problem for many organizations is not so much why training should be evaluated but

how. Most of the organizations overlook evaluation because financial benefits are difficult to

describe in concrete terms.

The process of evaluation is central to its effectiveness and helps to ensure that:

Whether training budget is well spent

To judge the performance of employee as individual and team.

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To establish culture of continuous learning and improvement.

PROCESS OF TRAINING EVALUATION

Before Training: The learner’s skills and knowledge are assessed before the training

program. During the start of training, candidates generally perceive it as a waste of resources

because at most of the times candidates are unaware of the objectives and learning outcomes

of the program. Once aware, they are asked to give their opinions on the methods used and

whether those methods confirm to the candidates preferences and learning style

During Training: It is the phase at which instruction is started. This phase usually consist

of short tests at regular intervals.

After Training: It is the phase when learner’s skills and knowledge are assessed again to

measure the effectiveness of the training. This phase is designed to determine whether

training has had the desired effect at individual department and organizational levels. There

are various evaluation techniques for this phase.

Techniques of evaluation

The various methods of training evaluation are:

• Observation

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• Questionnaire

• Interview

• Self diaries

• Self recording of specific incidents

WHAT TO EVALUATE/LEVEL OF EVALUATION

Donald Kirkpatrick developed four level models to assess training effectiveness. According to

him evaluation always begins with level first and should move through other levels in

sequence.

Reaction Level: The purpose is to measure the individual reaction to the training activity.

The benefit of Reaction level evaluation is to improve Training and Development activity

efficiency and effectiveness.

Learning Level: The basic purpose is to measure the learning transfer achieved by the

training and development activity. Another purpose is to determine to what extent the

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individual increased their knowledge, skills and changed their attitudes by applying

quantitative or qualitative assessment methods

Behavior Level: The basic purpose is to measure changes in behavior of the individual as

a result of the training and development activity and how well the enhancement of

knowledge, skill, attitudes has prepared than for their role.

Result Level: The purpose is to measure the contribution of training and development to

the achievement of the business/operational goals.

INDUSTRY PROFILE

TOBACCO IN INDIA:

India is the third largest tobacco producer in the world in the

world and a significant player in the global market ranking and occupying

position ninth in the export. Tobacco is grown in India for every 400

Hectors. Cigarette tobacco has been cultivated for nearly 90 years.

TYPES OF TOBACCO:

1. Flue Curved Tobacco

2. Sun Curved Tobacco

3. Bidi Tobacco

4. Cigarette Tobacco

5. Burley Tobacco

6. Cheroot Tobacco

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7. Hookah 4 chewing Tobacco

8. Air curved Tobacco

9. Fire Curved Tobacco

10. Oriented Tobacco

Over 550 million Kg of tobacco is grown annually, with flue curved

Virginia (FCV) and Burley tobaccos accounting for approximi9alately

200 million Kg s. Nearly 50 % of FCV crop is exported, making India .

The fourth largest grower and exported of FCV tobacco in the world.

Light soil burley and air- curved tobaccos are also exported.

4, 00,000 hectors of land is under tobacco cultivation. Nearly 6

million people are involved in the process. It is generating employment

for every 30 million people with collective wages amounting to $520

million annually.

Excise collections from the tobacco industry are about $1.2 billion

annually with cigarette tobacco’s accounting for nearly 90%of the

revenge generated. Andhra Pradesh and Karnataka in the southern

part of India are main cigarette tobacco growers.

India has the climate, soil and skills to produce a quality tobacco

that is preferred internationally. Guntur in A.P is the tobacco of the

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country there cigarette tobacco growing, auctioning and trading

began. The near by port of CHENNAU handles the bulk of tobacco

export consignments.

Strong entry barriers of brand equity and distribution network

characterize the cigarette business. Buildings up brand are

particularly difficult in this business as TV and video adverstiment are

restricted in India. Some stats have banned smoking in public places.

Brand loyalties nevertheless are strong as product consumed as

addition cannot be differentiated much on performance. Building up a

distribution network is an equally drawing task as the product is

distributed network is an equally drawings task as the product is

distributed through sources of small roadside pan and bidi shops all

over country.

World over the cigarette industry is facing serious problems in

developed countries, it has more or less reached a level of stagnation

and even experience negative growth. This is mainly because of

growing health consciousness, steep duty likes and subsequent price

increase had led to a slowdown. Besides restrictions on smoking are

public places ban on sales in railway stations has an adverse impact on

retail cigarette off take. Another area of concern for the cigarette

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industry has been the free availability of smuggled brands in the

country.

Cigarettes come under the category of fast moving consumer

goods. As such strong brand names and aggressive marketing assume

importance. The industry therefore undertakes massive investment in

brand promotion and setting up of a marketing infrastructure. The

people directly employed in the cigarette industry are around 4.5

million.

In India tobacco crop is grown over an area of 4,00,000 hectors,

which is hardly 0.3% of the total cropped are India is the third largest

producer with production of 590 million Kg after China and the U.S.

2/3rd of Indian tobacco is used in non-cigarette a product of the left

over 1/3, half is exported. Tobacco contributes over Rs.25, 000 million

by way of excise revenue and earns over Rs. 5,000 million by way of

foreign exchange.

Among various types Virginia Flue curved is the most important.

Tobacco yield in India at around 1,486 Kg per hectares. Cigarette

industry is broadly classified into filter and non-filter and further sub

classified based on the length.

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The campaign against smoking is mainly directed against

cigarettes. The bidi and chewing product manufactures who primarily

fall into the unorganized and small-scale sectors have more or less

escaped the problem.

Bidi account for about 53%(by weight), chewing of non-smoking

products account for 27% cigarettes as an industry account for around

20% of the tobacco consumption in the country.

India’s cigarette industry experienced a growth rate of 10% during

1994-1995 to 1997-1998 mainly because of incentive in the form of

lower excise duty but a present cigarette companies are forced to

operate under adverse factors both internal and external.

For the Govt. the cigarette segment accounts for nearly 90% of the

total excise collections from the tobacco segment.

The growth of the industry largely depends on the excise policies of

the govt. price sensitivity can be seen particularly at the lower end of

the market.

About 1/3 of the world cigarettes amounting to Rs.1,80,000 million

are currently being smuggled India, like many other developing

countries, has become a cigarette smuggler’s paradise out of 97 billion

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cigarette sticks sold in India. Each year about 5 billion are smuggled in

leading to a loss of about Rs.20, 000 million in revenue. Out of every

100 packages of smuggled cigarettes sold in the country, 70 to 80

packages are Marlboro lights produced by US based Philip Morris the

top cigarette producer in the world.

The tobacco companies will be required to indicate nicotine and tar

content in each cigarette in cigar. This information will need to be

published on each packet in the English & Indian languages. All

violations will lead to confiscation of goods.

According to Premed Maharaja Parliamentary affairs mini8ster, the

following products will be covered in the new legislation. Cigarettes,

cigars, cigarette, tobacco pipe tobacco, hukka tobacco, chewing

tobacco, panmasala, gutka, or any nother chewing masala.

India has one of the highest rates of taxation among countries

improving a specific tax on cigarettes. Infect, about 605 of the price of

cigarette in India represents excise cigarette contribute nearly 10% of

the total excise to the exchequer. The industry contribution over Rs.

60 billion a years as excise duty.

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Raising taxes on cigarettes, exports say, will drive people into other

form of tobacco use, particularly bidis, which are even more of a

health hazard than cigarettes and practically pay no taxes.

The advertising standards council of India (ASCI) has adopted a

code, which requires that the advertisements of tobacco-based

products should not:

1. Encourage minors or induce non-smokers to use tobacco

products.

2. Suggest that the use of tobacco products would lead to extra

ordinary successive various areas.

3. Successive various areas of human Endeavour.

4. Imply any link between tobacco use and manliness female

emancipation.

5. Contain any endorsement of tobacco use by celebrities.

6. Depict any model below the age of 25.

7. Show any model smoking or chewing tobacco.

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MAJOR PLAYERS:

INDIAN TOBACCO COMPANY LTD:

ITC is the market leader in the country. It has a market share

of 67% in volume terms and the largest distribution networks in the

country sale of cigarettes by ITC feel by 2.37% during 1999-2000 to 77.15

billion sticks from 67.5 billion sticks in 1998-1999 total revenue increased

by 6.18% to Rs.69, 400 from Rest. 65,360 million in the pervious year.

GODFREY PHILIPS INDIA LTD:

GPI is the second largest player in the Indian cigarette

industry is a joint venture with global cigarette major Phillip marries.

Gpi’s leading brands include jaisalmer, four square, red & white and

originals.

VAZR SULTAN TOBACCO (VST)

It is primary in the business of manufacturing and marketing of

cigarettes. The companies major brands are Chaminar, Charms

and Gold premium these have several brand extensions.

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Experts say that the tax on cigarettes should be linked to tar and

nicoti8ne content. In many countries, there is a tendency to use

taxes to either encourage smokers to mover to filter cigarettes or

to tie the tax rate to tar and nicotine context. Tax rate to tar and

nicotine content.

RESEARCH DESIGN

This study is mostly exploratory in nature and it aims at discovering general problems in functions of management and variables released with it.In this part, an attempt has been made to explain the research design, the procedure of sample selection,methodology used in data collection,analysis,presentation.

OBJECTIVES OF THE STUDY

Increase India’s market share in the international tobacco market

and project ILTD/India as a reliable competitive quality supplier

Ensure a crop size of required varieties and qualities, which would

meet domestic and export requirement.

To play a proactive role in balancing the crop size in relation to

supply and demand situation.

Enhance our competitive edge in all spheres to match international

competition/standards help seize international opportunities.

Explore cheaper and effective financing options and strengths cost

control measures.

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To strengthen Human Resource Mechanisms in order to mobiles

Human Resource at all levels to ensure competitiveness and

contemporariness of the division.

SCOPE OF THE STUDY

To develop a work culture conductive to learning to learning

and make continuous and appropriate investments (time, effort & money)

in human resource for competence enhancement with a view to making

them effective and comtempary and thus help achieve the division’s

objective in an increasingly competitive cigarette tobacco market.

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LIMITATIONS OF THE STUDY

Due to lack of time the study could not cover the entire employees.

Sampling size is restricted to only certain limited employees.

The study is related only to ITC Guntur.

Some people were reluctant to answer the questionnaire.

The survey may not reflect the opinion of the entire employees.

There may be a change of personal bias.

Data analysis done is totally based on the information that it is

collected from the questionnaire.

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METHODOLOGY OF THE STUDY :

The data pertaining to the opinions and feedback of the

employees has been obtained from the primary source. The information

about profile-integrated plan etc, have been obtained from secondary

sources. An exhaustive study has been made to meet the above-

mentioned objectives.

SOURCES:

Mainly primary source and then secondary source.

Primary Data:

The primary data is collected through personal interview with

employees, by questionnaires.

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Secondary data:

The sources of secondary data are,

Internet

Brochures, Magazines, Annual reports of the organization.

Sample size:

The total population of 20 constituted the study.

Statistical tools used:

1. Percentages

2. Pie charts

COMPANY PROFILE

British American Tobacco started its tobacco trading in India

on 24th August 1910 by name “Imperial Tobacco Company of India Ltd.”.

Later the company amalgamated with peninsular tobacco company and

Indian Tobacco Development Company. In the year 1970 it changed its

name to “India Tobacco Company (ITC)” and registered in 1974 as ITC

Ltd.

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ITC Limited headed by Chairman Y.C. Deveshwar is one of

the India’s largest private sector companies with an annual

turnover of over $ 1.7 billion.

ITC’S PRPTOFOLIO OF BUSINESS:

ITC is one of India’s foremost private sector companies with a

market capitalization of over US $ 16 billion and a turnover of US $ 3

billion. Rated among the world’s best big companies by Forbes Magazine,

Itc ranks 3rd on all major profit parameters among India’s private sector

corporations. Itc has a diversified presence and specialty papers,

packaging, agri businesses, packaged foods and confectionery, branded

apparel, greeting cards and other FMCG products. While ITC is an

outstanding market leader in its traditional business of in cigarettes,

hotels, paper boards packaging, agri-businesses, it is rapidly gaining

market share even in its nascent businesses of packaged foods and

confectionery, branded apparel, greeting cards.

As one of India’s most valuable and respected cooperation’s, ITC is

widely perceived to be dedicatedly nation oriented. Chairmen Y.C

Deveshwar calls this source of this inspiration “a commitment beyond the

market”. In his own words: “ITC belives that its aspiration to create

enduring value for the nation provides the motive force to sustain

growing share holder value. Itc practices this philosophy by not only

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driving each of its business towards international competitiveness but by

also consci0ously contributing to enhancing the competitiveness of the

larger value chain of which it is a part”.

ITC’s diversified status originates from its corporate strategy aimed

at creating multiple drives of growth anchored on its time- tested core

competencies: and matched distribution reach, superior brand-buildings

capabilities, effective supply chain management and acknowledged

service services in hoteliering. Over time, the strategic forays into new

business are expected to garner a significant share of these emerging

high- growth markets in India.

ITC’s Agri-business is one of India’s largest exporters of

agricultural products. ITC is one of the countries biggest foreign

exchange earns (US $ 2 billion last decade). The company’s ‘e-choupal’

initiate is enabling Indian agriculture significantly enhance its

competitiveness by empowering Indian farmers through the power of the

internet. This transformation strategy, which has already become the

subject matter of a case study at Harvard Business School, is expected to

progressively create for ITC a huge rural distribution infrastructure,

significantly enhancing the companies marketing the reach.

ITC’s wholly owned information technology subsidiary, ITC

InfoTech India Ltd is aggressively pursing emerging opportunities in

providing end-to-end IT solutions, including e-enabled services and

business process outsourcing.

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ITC’s production facilities and hotels have won numerous national

and international awards for quality, productivity, and safety and

environment management systems. ITC was the first company in India to

be rated for corporate governance by ICRA, an associate of Moody’s

investors service, which accorded it the second highest rating, signifying

“a high level of assurance on the quality of corporate governance”.

ITC employees over 20000 people at more than 60 locations across

India. Ranked among India’s most valuable companies by the ‘Business

Today’ magazine, ITC continuously endeavors to enhance its wealth

generating capabilities in a globalizing environment to consistently

reward more than 3.92,488 share holders, fulfill the aspirations of its

state holders and meet societal expectations. This over-arching vision of

the companies expressively captured in its cooperating positioning

statement: “Enduring value. For the nation. For the share holder.”

ORGANIZATIONAL STRUCTURE OF ITC LTD:

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Today ITC group has evolved into a multi-market, multi technology and multi-project

organization. Today’s ITC’s business is identified with several divisions and each is having

its own divisional head quarters with registered office at 37, chowringhee, Calcutta.

S.NO NAME OF THE DIVISION

BUSINESS ACTIVITES

1 INDIA TOBACCO DIVISION CALCUTTA

Manufactures and sells cigarettes and smoking tobaccos in domestic and export markets.

2 PACKAGING AND PRINTING CHENNAI

Manufactures and sells printed packaging materials for export and domestic markets.

3 INDIAN LEAF TOBACCO DEVELOPMENT DIVISION GUNTUR

Develops, purchases, processes and sells un manufactures tobacco for the export and domestic markets.

4 HOTELS DIVISION NEWDELHI

The owned hotels of the being operated by ITC Hotels Ltd.

5 INTERNATIONAL BUSINESS DIVISION CALCUTTA

Exports of Agri-products, Aqua Foods.

6 TRIBUNE TISSUES DIVISION CALCUTTA

Manufactures and sells wide range of specially papers for various applications.

TRADE INVESTMENT OF ITC LTD:

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ITC has promoted the following business as part of its diversification plans fro

times to time as a part of its business strategy. At present the following are the trade

investments companies and their business activities.

Name Of The Company Business Activities

RUSSELL CREDIT LIMITED FMCG & Tobacco, Hotels & tourism paper

GOLD FLAKE CORPORATION LIMITED & WILLS CORPORATION LIMITED

Manufacture and sale of cigarette filter rods.

LAND BASE INDIA LIMITED Classic Golf Resort

BLIF FINANCE LIMITED It was originally promoted as a financial services company. It is currently engaged only in recovery of its dues.

ITC INFOTECH INDIA LIMITED India base call/ contact center services.

SURYA NEPAL PRIVATE LIMITED Manufacture and sale of cigarettes and garments.

SRINIVASA RESORTS LIMITED The company owns the “ITC Hotel Kakatiya Sheraton” at HYD, which is operated by ITC limited.

JOINT VENTURE OF ITC LIMITED Trading in cigarettes and ‘roll-your-own’ smoking mixtures in USA.

ITC LEADER SHIP:

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Flowing from the concept and principles of corporate

governance adapted by the company, leadership within ITC is

exercised at three levels.

The Board of Directors at the apex, as trustee of shareholders,

carries the responsibility for strategic supervision of the company.

The strategic management of the company rests with the corporate

Management committee comprising the whole time Directors and

members drawn from senior management.

The executive management of each business division is vested with

the Divisional Management Committee (DMC), headed by the Chief

Executive. Each DMC is responsible for and totally focused on the

management of its assigned business.

This three- tiered inter linked leadership process creates a

wholesome balance between the need for focus and executive freedom,

and the need for supervision and control.

PRODUCT GROUPS:

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A) Cigarettes & Tobacco :

Tobacco consumption has been a traditional feature of consumer

preference in India, over several centuries. The current annual

value of consumer spending in the tobacco sector in India is

estimated at over 4s 23,000 crs.

ITC is the market leader in cigarettes in India. With its wide

range of invaluable brands, it has a leadership position in every

segment of the market. It’s highly popular portfolio of brands

includes India Kings, Gold Flake, Navy Cut, Scissors, Capstan,

Berkeley and Bristol.

ITC’s leadership is founded on its core strategy of continuously

enhancing product values through significant investments in

product design, manufacturing technology, quality, marketing

and distribution. In just the last 5 years, ITC has made capital

investments of over Rs.7 billion in its cigarettes business. In ITC

one of the pioneers of market research in India, the consumer is

still the King. The company continuously endeavors to provide its

consumers products that are benchmarked to international

quality. This strategic focus on the consumer has paid ITC

handsome dividends.

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The most important of these is its enriched product mix,

unmatched by competition. ITC’s share of filter cigarettes in

Country is more than 70%.

In pursuit of international competitiveness, ITC has launched

four brands Checkers, Hi-Val, Royal Classic and Gold Crest- in

the extremely competitive US market. Recently ITC has launched

Royal Classic, Gold Cut and Scissors Filter Kings cigarettes in

the Middle-East. The response of these brands has been

encouraging. ITC’s cigarettes are produced in its state of-the-art

factories at Bangalore, Munger, Saharanpur, and Kolkata. These

factories are known for their high levels of productivity and very

contemporary and work environment.

INDIA TOBACCO DIVISION:

ITC pioneered the manufacture of cigarettes in India and has

since 1910 maintained its leader position in industry the

company’s India tobacco division makes the widest range of

cigarettes in the country with brand leaders in every segment of

the market five of its trade marks Gold Flake, Wills Scissors,

Bristol & Capstan features among the top six in the industry. ITC

also boasts of a dominant market share by its popular trade

marks. The Gold make family continues to be the largest single

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trademark in the consumer product sector and wills is the

largest free standing consumer product brand in India in the

premium segment, India Kings and Classic enjoy preeminence.

LIST OF AWARDS:

ITC’s cigarettes business has own numerous awards for

its quality, environmental management systems and product

excellence:

5 star rating from the British Safety Council for the Bangalore and

Saharanpur factories.

The Kolkata factory has won the prestigious Greentech safety

Gold award for the year 2003-04 in the manufacturing sector. This

award is in recognition of the high level of performance that the

unit has achieved in environment Health & Safety (EHS).

ITC’s cigarette factories in Kolkatta, Bangalore and Munger have

been awarded the OHSAS: 18001 Certificate by Det Norske

Veritas (DNV) for their occupational Health and Safety

Management Systems (OHSMS).

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The Kolkata factory has been placed First in Category ‘B’ for

having made the best efforts towards Safety Management in the

Safety context of the Confederation of Indian Industry-Eastern

Region (CII-ER).

This award recognizes ITC e-Choupal as an exemplary

contribution towards development and poverty alleviation

leveraging information and communication technologies (ICT).

Corporate social responsibility award from the energy and

resources institute (TERI) 2005.

Golden Peacock global award for CSR in emerging economies

2005.

VISION:

Sustain ITC’s position as India’s one of the most valuable

corporations through world class performance, creating growing value

for Indian Economy and the company’s shareholders.

MISSION:

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To enhance the wealth generating capability to the enterprise

in a globalizing environment, delivering superior and sustainable

shareholder value.

INDIAN LEAF TOBACCO DEVELOPMENT DIVISION :

The leaf tobacco arm of ITC Ltd

The largest buyer, processor and

Exporter of Indian cigarette tobaccos

Committed to tobacco crop development through

Fundamental and Applied research

A professionally managed progressive institution with

proven leadership in the Indian tobacco industry

For over 90 years, we are identified with the introduction and

development of cigarette tobaccos in India. Our efforts in cigarette

tobacco development and export marketing have enabled India to become

the fifth largest cigarette tobacco producer and the eighth largest

exporter of cigarette type tobaccos in the world.

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We have sophisticated state-of-the-art processing and storage

facilities, located in the cigarette tobacco growing regions of India.

ILTD believes in building an enduring relationship with you to

create a unique competitive advantage that will enable you to win in the

global market place.

a) FOODS:

ITC made its entry into the branded & packaged foods business in

August 2001 with the launch of the Kitchens of India brand. A more

board entry has been made since June 2002 with brand launches in

confectionery, Staples and Snack Foods segments.

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The foods business carries forward this proud tradition to deliver

quality food products to the consumer. All products of ITC’s Food

business available in the market today have been crafted bade on

consumer insights developed through extensive market research.

Apart from the current portfolio of products, several new and

innovative products are under development in ITC’s state-of-the-art

product development facility located at Bangalore.

Leadership in the Foods business requires a keen undertaking of

the supply chain for agricultural produce. ITC has over the last 90

years established a very close business relationship with the

farming community in India and is currently in the process of

enhancing the Indian formers ability to link to global markets,

through the e-Choupal initiative, and produced the quality

demanded by its customers. This long-standing relationship is being

leveraged in sourcing best quality agricultural produced for ITC’s

Foods business?

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b) LIFE STYLE RETAILING:

Over the lat six years, ITC’sLife style retailing Business Division

has established a Nation wide retailing presence through its Wills

Lifestyle chain of exclusive specialty stores. Beginning with its

initial offering of Wills sport relaxed wear from the first store at

South Extension, New Delhi in July 2000, it has expanded its basket

of offering to the premium consumer with Wills Classic work wear,

Wills Club life eveningwear and a tempting range of designer

accessories that complete the Look.

With a distinctive presence across segment at the premium end,

ITC has also established john Players as a brand that offers a

complete fashion wardrobe to the youth of today. With its brands,

ITC aspires to build a dominant presence in the apparel market

through a robust portfolio of offerings.

ITC’s Wills Life style believes in the philosophy of ‘Enjoying the

Change’- the change that comes through actively exploring one’s

own multifaceted ness and stretching one’s limits. This season,

Wills Life Style presents a complete fashion Wardrobe that

complements every facet of your Lifestyle – at work, when you’re

relaxed and while you party.

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c) PAPER BOARDS AND SPECIALITY PAPERS:

ITC is one of the world’s most modern and contemporary

manufactures of packaging and graphic series of boards. ITC’s

Paper Boards business has a manufacturing capacity of3, 60,000

tones per every year and is India’s market leader across all carton –

consuming segments including cigarettes, foods, beverages,

personal care, pharmacy & toiletries, durables and match shells.

In 1998 the paper boards business commissioned a new production

line for coated boards. This production line incorporated paper

machine 4, which was equipped with a capacity of 1, 20,000 tones

per annum (TPA), and finishing equipment sourced from

internationally renowned suppliers. This machine has been fitted

with a sophisticated Web Detection and inspection system.

The recently commissioned paper Machine 5 at Bhadrachalam has a

capacity of 80, 00 tpa and will help the business offer and UN

beatable value proposition in both virgin and recycled boards. This

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will further strengthen ITC’s leadership position in the value added

paperboard.

d) SPECIALITY PAPERS:

THE Energy Conservation Award 2005-06 by the CII, Eastern

Region to the Tribeni Unit ITC- PSPD. ISO 9001 accreditation in

November 1999 from Lloyds Register, which has certified most of

the leading cigarette paper manufactures in the world.

Competition in specialty papers intensified, aided by the reduction

in import duties on the most grades of paper following the 1996

union budget. This led to increase availability of imports, severely

impacting margins.

ISO 14001 accreditation in December 2002 from Lloyds

Register. Accreditation to quality bodies in UK, and UKAS and RAB.

The Gold Award for safety in 1999 from Royal Society for

prevention of Accidence (RoSPA), UK, Runners-up in 2000 for the

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prestigious Golden Peacock Environment Management Award,

instituted by the World Environment Foundation.

e) PACKKAGING AND PRINTING:

The packaging and printing business leverage its recent

investments in technology up gradation to expand its range of

offering to include a wider variety of contemporary packing

formants. This has enabled it to provide discernibly superior and

innovative packaging solutions not only to your company’s

cigarettes business but also to the FMCG and paperboards

business. The enhanced packaging capability provided invaluable

support towards introduction and rollout of several cigarette brands

in beveled edge, round corner and pillow packs while also enabling

conservation of foreign exchange through import substitution.

SIGNIFICANT AWARD:

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The Greentech Environment Award.

Level 7 on the international qualify rating system (IQRS).

British safety council swords of Honour.

CAPEXIL Export Award.

World star, Asia start and India Start Awards for excellence in packaging.

f) NEW BUSINESS:

The company’s trademark enjoys enormous goodwill and

substantial consumer franchise. Its goodwill has been built over

decades and repents an enormous accumulated investment. In a

highly completive environment, the cost of building new trademark

is prohibitive.

The year 2004-05 was witness to significant enhancement in ITC’s

market standing in its never FMCG business. New product

launches, growing consumer acceptance and increasing market

share point to rate progress towards leadership position

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PERFORMANCE OF THE STUDY:

Today, tech ITC LTD is providing direct employment for more than

20,000 people and many more indirectly. It is a dynamic corporate

entity forever in pursuit of excellence: constant progress and

strength and support for its 3 lakh share holders, 150 lakhs

retailers and 5 lakh farmer communities. It touches the lives of over

1% of India’s rural population, spreads 60 locations in India and 10

Countries across the world. The ITC group is family which

embraces in its ambit both village retailers and financial analysis,

farmers and chief executives, serving thousands of Indian families

in one way or the other, besides a signifi8cant no. of people

overseas.

ITS commitment to the shareholders in enormous and is paying

uninterrupted dividend since its incorporation 1910, a period of 88

hears. This is a unique achievement made by the company even

though there are certain ups and downs in its business at several

times.

The year under the review witnessed strengthening of the

company’s leadership position in the tobacco, hotels & packaging

business. Simultaneously, the company is in the process of

restructuring its gestating specialty paper investments. In tune with

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its strategy of sharpening focus on its core business, the company

exited the seeds business and substantially disengaged from the

edible oils and financial services section, the alter by supporting the

merger of ITC Classic Finance Limited (classic finance) with

industrial credit and INVESTMENT Corporation India LTD(ICICI).

This disengagement from classic finance involved a significant

financial outlay of nearly Rs.88 crores this includes Rs. 350 crore

towards preference capital in ICICI for a period of 20 years at a

nominal dividend apart from absorbing a one time restructuring

charge of Rs. 53.5 crores in the year under review. The company

supported the financial restructuring of classic finance, even

through it had no legal obligation to do so, recognize that the

financial failure of large NBFC would adversely impact investor’s

confidence in this sector and has disrupted orderly economic

growth. That would neither have been in the national nor in the

interest of the company.

ISO CERTIFICATION FOR INVESTOR SERVICE:

ITC is one the very few companies in India to receive the

covered Quality Management System Standards ISO 9001:2000 for

investor servicing. The certification testifies to the exemplary

standards that the company’s Investor Service Center has achieved

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in complying with statutory and regulatory requirements and

redressing investor grievances.

FOREIGN EXCHANGE EARNINGS :

ITC continues to view foreign exchange earnings as a key

priority. All business in the ITC portfolio is mandated to engage

with over-seas markets in a bid to test competitiveness and seek

growth opportunities. THE ITC Group’s contributed to foreign

exchange earnings over the last decade amounted to nearly USD

22. Billion, of which agri exports accounted for about USD 1.6

billion. Earnings from agri exports are an indicator of your

company’s contribution to the rural economy through effectively

linking small farmers with international markets.

During the financial year 2004-05, company subsidiaries and the

ITC welcome group hotel chain together Rs.1378 crs in foreign

exchange. Direct foreign exchange earned by the company

amounted to Rs.1269 crs. The company’s expenditure in foreign

currency amounted to Rs. 665 crs, comprising purchase of raw

material, spares and other expenses at Rs. 531 crs, and import of

capital goods at Rs. 124 crores.

SOCIO – ECONOMIC ENVIRONMENR:

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Advance estimates of the central Statistical Organization

(CSO) for 2004-05 indicates a real GDP growth of 6.9% - well above

the exceptions at the commencement of the year. This growth has

been achieved despite a less normal monsoon, decline in the Kharif

crop output, unprecedented rise in global oil prices and fears of de

growth in outsourced IT services from India. The decline in Kharif

food grains consequent to the shortfall in southwest monsoon is

expected to be offset by improved Rabi output, which is estimated

to exceed Kharif production for the first time since 1950-51. the

potentially inflationary impact of rising World crude prices has so

far been ameliorated through a combat ion of agile fiscal policy and

prudent monetary management. Growth in the India IT sector has

continued unabated, with software export earnings touching USD

30 billion.

COMPANY PERFORMANCE:

ITC posted yet another year of stellar performance,

testifying to the robustness of the corporate strategy of pursuing

multiple drives of growth. The performance is even more

heartening when viewed in the context of challenges environment

of the cigarette industry, impact of the absorption of incubation

costs of the new business initiative and the gestation cost of new

investments in the hotels and paperboards business.

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Gross turnover for the 2004-05 grow by 13% to Rs .13350

crs, driven by good top line growth across all business of your

company. Pretax increased by 15.3% to Rs. 2673 crs, while post –

tax profit at Rs, 1873 crs registered a growth of 15.3

MAIN OBJECTIVES OF THE COMPANY :

The main mission of the organization is “consumer is

sovereign”. In order to achieve, the following are its objective.

Making Indian tobacco Industry internationally

competitive.

Making Indian Products International by bringing pride

to the “MADE IN INDIA “Label.

Upgrading of technology for optimization of resource utilization.

Increasing the share of cigarettes in the tobacco industry for mutual

benefit to the company as well as government in revenues and tax

generation.

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Enhancing their commitment to the national priority as a leading

foreign exchange earner.

Making their products and facilities comparable with international

standards in product quality and corporate safety.

The important point to note in this is that the company has

seized the opportunity of entering into international business by

exporting various agriculture and miren products the period 1990-1995

and achieved tremendous growth during this period and also need

substantial amount of foreign exchange to our country.

SOCIAL RESPOSIBILITY:

The company is involved in various social

development activities, in all it’s operational to locations. It is committed

for development of the tobacco growing farmer, for which it is carrying

extensive Research and Development activities, and benefiting the

farmers by way of introducing new farm practices, high yielding varieties

and crop consistency program etc. Apart from this, the company is

actively involved by way sponsorship of various spots and games events

from time to time and involved in activities like providing drinking water

facilities, health camps, adult education programs etc., in a big way.-

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ITC’S AREA OF OPERATIONS:

ANDHRA PRADESH KARNATAKA

1. Vijayanagaram 1. Mysore

2. Visakapatnam 2. Yelwual

3. Anaparti 3. Hunsur

4. Rajamantri 4. Penapatna

5. Vijayawada 5. Shimago

6. Guntur

7. Cheerala

8. Onogole.

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OPERATING CYCLE OF ILTD:

Operating cycle is time duration required to convert inventory into sale, after conversion of resources into inventories and inventories to sales. Operating cycle starts with the procurement of material and go through stages like:

1. Conversion of raw material into work – in – progress.

2. Conversion of work – in – progress into finished goods.

ITC EXCSTING BUSIESS:

Tobacco:

1. marketing

2. brand building

3. farmer relationships

4. distribution

Hospitality:

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1. people management

2. customer service

3. brand buildings

4. f&b management

Trading:

1. international marketing

2. firex management

3. sourcing

Paper board:

1. institutional marketing

2. manufacturing marketing

Printing&

Packaging

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1. merchentising

2. institutional marketing

HEAD QUARTERS IN CHOWRINGHEE KOLKATTA:

80% OF SALES FROM CIGRATTES & tobacco.

From next 5-7 years ITC wants to change the proportion and generates as much as 40% of its sales from non tobacco business.

‘ITC”S life style + wills sport – apparel, expressions range of greeting ready to eat packaged food.

ITC is leveraging competencies from its exiting business the most notable is the tobacco business distribution expertise – to tap new opportunities.

It all goes well, these diversifications will add Rs 200 corer to ITC’s top line by 2007.

A JOURNEY THROUGH THE 21ST CENTURY ILTD – TH E TALLY COMPANY

1908 – INDIAN LEAF TOBACO DEVELOPMENT COMPANY LIMITED IN CORPERATED IN THE BRITISH ISLES.

1911 – COMMENCED ITS BUYING OF AIR CURVED VARIETY NEAR MONGHYR ( BIHAR STATE).

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1920 – BEGAN EXPERIMENTS TO CULTIVATES VIRTINIA TOBACCO IN ANDHARPRADESH (NEAR GUNTUR).

1926 – REDRYING FACTORY AT CHIRALA.

1933 – FIRST FCV TOBACCO EXPORTED BY ILTD TO UK COMMENCECEMENT OF OPERATIONS AT ANAPARTI.

1955 – RESEARCH CENTER AT RAJAMUNDRY.

1962 – INTRODUCTION OF SUN CURED VARIETY AT KURNOOL.

1964 – INTRODUCTIN OF FCV IN KARNATATAKA - ARTC AT HUNSUR.

1975 – MERGER OF ILTD WITH ITC.

1982 – COMMENCEMENT OF GLT PLANT AT ANAPARTI.

1984 – COMMENCEMENT OF TOBACCO AUCTIONS, GRADING BY FARMERS.

1991 – SECOND GIL AT CHIRALA.

1992 – BIRTH OF IBD.

1998 – RECORD EXPORTS TURNOVER ABD DIVISIONAL TURNOVER.

1999 – DEVELOPMENT OF ORIENTAL TOBACCO – TIRUPATI.

2000 – PROJECT EVERGREEN.

CONTEMPORY PROCESSING FOR A COMPETITIVE EDEGE:

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ILTD ‘S two procession plants at Anaparti and Chirala in A.P

compare with the best in the world and are capable of meeting

exacting customers speciation.

The plants have combined capacity of 300 tones per day.

Investments of over $75 million or being made for further

enhancing threshing technology and doubling capacity over the

next 4 years.

Classification and storage system for green leaf are being up

graduated to state of the art.

Product quality specifications are consistently redefined to meet the

requirements.

Processing equipment such as threshers and classifiers, redrires,

press complex are continuously upgraded through world renowned

suppliers.

Internationally agreed methods of product quality testing used in all

operations including certified CORESTA screens and standards.

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The Chirala and Anaparti GLT’s were the first of their kind to

receive ISO 9002 accreditation.

The Chirala plant became the first green leaf threshing plant in the

world to be accorded the ISO 14001 environmental certification.

THE PEOPLE ADVANTAGE:

In ILTD, people are its strategic asset, giving the business and definite

competitive edge. ILTD’S philosophy aims at nurturing and promoting a

work culture that fosters excellence, innovation, competence and

contribution. A professional environment promotes the development of

world class talent, skills and expertise. Constant training and

development ensure that ILTD’s people remain at the forefront of change

through customer orientation and responsiveness, sustaining the

company’s leadership by combing the virtues of tradition with modernity,

delivering goods & services effectively, with a personal and humane

touch. ILTD provides a quality of life to its people that sustain their

commitment to excellence.

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ONE STOP SHOP FOR QUALITY TOBACCO:

With 90 years of experience in working closely with the farmer and

as exporters of cigarette tobacco forever 65 years, ILTD is today in

a unique position of strength.

Advanced technology supported by cost nenefits and technical

customer service give it the global edge. The company’s emphasis

on quality, customer satification and safety are benchmarked to

international standards.

The range of ILTD’s products decades of partnership woth the

farmer, its wide experience in serving export t customers in 37

countries, perennial availability of tobaccos with an inventory of 80

million Kg s round the year and a dedicated export department

have made it a one shop for quality Indian tobaccos. ILTD continues

to strengthen its competitive advantage to build on the company’s

leadership position in next millennium.

ILTD’s two processing plants at Anaparthi and Chirala in A.P

compare with the best in the world and are capable of metting

extracting customer spedifications. The plants have a combined

capacity of 300 tones per day. Investments of over $75 million are

being made for further enhancing threshing technology and

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doubling capacity over the next 4 years. State of the equipments,

modern quality control labs, sophisticated electronic tools and

instrumentation with feedback loops ensure a consistent end

product. Processing equipment such as threshers and classifiers,

redrires are continuously upgraded through world renounced

suppliers.

A RESPONSIBLE CORPORATIVE CITIZEN:

ILTD participates with the local administration in its areas of operations

in improving civic amenties, infrastructure, social forestry and sanitation

resulting ina marked development of facilites both for resident and vision.

DATA ANALYSIS AND INTERPRETATION

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4.1.What is Training and Development to you?

S.N

o.Options

NO. Of

RespondentsPercentage

1 To acquire knowledge&

skills.

15 30%

2 To learn Behavior in

organization

15 30%

3 To learn abilities

attitudes of a particular

job

10 20%

4 All of the above 10 20%

Total 50 100%

Interpretation: -

From above table, it is observed that30% of the employees

are felt that training and development to them is to learn behavior

in organization, acquire knowledge and skills, and 20% of

employees felt that to learn abilities. The same data is in corporate

in the following graph.

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4.1

What is Training& Development to you?

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4.2.Training is need for the Development of you?

S.N

o.Options

NO. Of

RespondentsPercentage

1 Current project 25 50%

2 Future Project 15 30%

3 Personnel 10 20%

4 All of the above 0 0%

Total 50 100%

Interpretation:

After observing the above table we can understand that most

of the employees felt that the training is needed for the

development of their current project improvement, their percentage

is 50%, 30% of the other employees said that training is need for

the development of future project, remaining employees are said

that training is need for development of Personnel growth. No

single employee said these all three uses they get from the training.

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4.2

Training is need for the Development of you?

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4.3. What are the factors that influence you to participate in

Training program?

S.N

o.Options

NO. Of

RespondentsPercentage

1 Voluntary 20 40%

2 Mandatory 18 36%

3 Through

Management

12 24%

Total 50 100%

Interpretation:

After observing the above table we can understand that

most of the employees are feel that the Factors to participate

into training was taken as voluntary the 40% of the employees

are feel like this, and 36% of the people are it gives Mandatory

and remaining employees are feel it comes through

management.

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4.3

What are the factors that influence you to participate in

training program?

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4.4.How many years of service you have in TOBACCO BOARD?

S.N

o.Options

NO. Of

RespondentsPercentage

1 Less than 5 years 6 12%

2 5 to 10 years 20 40%

3 10-15 years 23 46%

4 More than 15 years 1 2%

Total 50 100%

Interpretation: -

From the above table it is very clear that out of 50 employees,2% of

employees had more than 15 years of service,46% of employess had

10-15 years of service(me).

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4.4

How many years of service you have in TOBACCO BOARD?

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4.5. Are you satisfied with the training programs given by the

TOBACCO BOARD?

S.No

.Options

NO. Of

RespondentsPercentage

1 Fully satisfied 20 40%

2 Satisfied 11 22%

3 Neutral 9 18%

4 Dissatisfied 10 20%

Total 50 100%

Interpretation:

From the above table it is observed that out of 50 employees

40 % of employees are highly satisfied with the training programs,

the other 40% of employees are satisfied with the training programs

provided at TOBACCO BOARD, and remaining 20% are dissatisfied

with the training programs.

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4.5

Are you satisfied with the training programs Given

in TOBACCO BOARD?

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4.6. How frequent is training given in your organization?

S.N

o.Options

NO. Of

RespondentsPercentage

1 Quarterly 5 10%

2 Half yearly 0 0%

3 Annually 10 20%

4 Specify to the

Requirements

35 70%

Total 50 100%

Interpretation:

Out of my 5o employees 70% of employees felt that training

should be given when ever thetraining requirements arises in the

organization . so that it helps than about to achive their

organizational objectives effectively.

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4.6

How frequent is Training given in your

organization?

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4.7. How do you think that training is helpful to you?

S.N

o.Options

NO. Of

RespondentsPercentage

1 Increased the

productivity

23 46%

2 Enhanced the skill 10 20%

3 Made job easier 7 14%

4 All the above 10 20%

Total 50 100%

Interpretation: -

46% of the employees said that training is helpful to

increase the productivity, 20% of employees felt that to enhance the

skills.

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4.7

How do you think that training is helpful to you?

4.8. Do you realize that further training is necessary for the present

job?

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S.N

o.Options

NO. Of

RespondentsPercentage

1 Yes 12 24%

2 NO 38 76%

Total 50 100%

Interpretation: -

76% employees felt that they are satisfied with the present

training programs, which is relevant to this job. So they felt that

they don’t require future liability.

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4.8

Do you realize that further training is necessary for the

present job?

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4.9. The need for the development for training programs will be identified through?

S.N

o.Options

NO. Of

RespondentsPercentage

1 Feedback from the

employees

27 54%

2 Feedback from the

superiors

10 20%

3 Management

Requirement

4 8%

4 According to the

Company Strategy

9 18%

Total 50 100%

Interpretation:

54%of the employees are said that training programs will

be identified through Feedback from the employees, 20% of

the employees are said that training programs will be

identified through Feedback from the superiors, 4% of the

employees are said that training programs will be identified

through Management Requirement, 18% of the employees are

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said that training programs will be identified through

According to the Company Strategy

4.9

The need for the development for training programs will be

identified through?

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4.10. What type of help you got from the CLC (Corporate Learning Centre) in the

training period at TOBACCO BOARD?

S.N

o.Options

NO. Of

RespondentsPercentage

1 Excellent 11 22%

2 Very good 7 14%

3 Satisfactory 12 24%

4 Poor 20 40%

Total 50 100%

Interpretation: -

From the above table it is very clear that out of 50 employees,

40% of employees felt that the training provided by Corporate

Learning Centre is poor 24 % of employees said that they

have taken Satisfactory help from CLC (Corporate Learning

Centre ) in the training period at TOBACCO BOARD, 22% of

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employees said that they have taken Excellent help from CLC

in the training period at TOBACCO BOARD,14% of employees

said that they have taken Very Good help from CLC in the

training period at TOBACCO BOARD, 40% of employees said

that they have taken poor help from CLC in the training

period at TOBACCO BOARD

4.10

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What type of help you got from the CLC (Corporate

Learning Centre) in the training period at TOBACCO

BOARD?

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FINDINGS OF THE STUDY

1. It was found that the training programs by which they can develop their skills satisfied employees.

2. It was found that the employees were given committee assignments when they are on-the-job- training. They also have classroom sessions/ assignments as a part of the on-the-job training programs.

3. It has been observed that employee’s feedback will be collected immediately up to maximum extent after the training program. The employees are enthusiastic about the training programs and they also felt that the training program is interactive.

4. Employees feel less enthusiastic before training. On seeing environment, they are keen on attending off-the-job training in a new environment/ setting.

5. It was observed that employees were having recreation programs in the development period.

6. it was observed that they can overcome their weakness in the training programs and can develop new skills.

7. the study reveals that the training programs are conducted on the basis of company training needs.

8. it was observed that employees are satisfied with the training program followed by the organization.

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CONCLUSION

1. Training programmers are, not restricted to one place.

2. All the employees agreed that the training programs are necessary and useful for personnel at organization.

3. Most of the employees felt that regularity of training programmers must be there and selection of personnel for training must be systematic.

4. Most of the employees felt that there must be class room sessions/lectures as a part of the training program.

5. Trainees (or) Employees feel that training program is very interactive.

6. Employees feel that the organization has proper induction and training programs for new employee.

7. Mostly on-line methods are followed.

8. Most of the employees are satisfied with trainees.

9. Trainees through questionnaires evaluate the training program.

10. Internal faculty has biasing in the selection process. Majority of respondents preferred out side consultants to be their trainees.

11. Most of the employees felt that the training improves relationship between superiors & subordinates.

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12. Feedback is collected after the training program.

SUGGESTIONS

1. Each employee should attend a minimum of three of maximum or five months of training program conducted by the organization per year.

2. The Management must ensure that the training outputs should be implemented.

3. It may be suggested that the training program be conducted away from their area of work.

4. The training program should be more be more practical rather than giving lectures.

5. The training program must have problem solving techniques as part of their of program.

6. The company must help the employees to overcome their weakness at the time of training program.

7. The organization should provide recreation program to the employee in order to increase their morale.

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QUESTIONNAIRE

I am M.Vijay Gandhi pursuing M.B.A. course in MAHATMA GANDHI

COLLEGE, GUNTUR from undergoing summer training in ITC.LTD. Kindly provide the

required data for successful completion of my study.

Please spend your valuable time to me.

Thanking you sir.

Yours sincerely,M.Vijay Gandhi

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QUESTIONNAIRE

1. What is Training& Development to you?

A) To learn knowledge& skills.

B) To learn Behavior in organization

C) To learn abilities attitudes of a particular job

D) All of the above

2 Training is need for the Development of you?

A) Current project B) Future Project

C) Both D) None of these

3 According to you which type of training is beneficial?

A) On the job training B) Off the job training

C) depends up on the Requirement D) all of the above

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4 How many years of service you have in TOBACCO BOARD?

A) Less than 5 years B) 5 to 10 years

C) 10-15 years

D) more than 15 years

5 Are you satisfied with the training praogrammes given by the

TOBACCO BOARD management?

A) Fully satisfied

B) satisfied

C) Neutral

D) dissatisfied

6 How frequent is Training given in your organization?

A) Quarterly B) Half yearly

C) Annually D) Specify to the

Requirements.

7 How do you think that the training helpful to you?

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A) Increased the productivity B) Enhanced the skill

C) Made job easier D) All of the above

8 Do you realize that further training is necessary for the

present job?

A) Yes B) No

C) If yes, kindly specify

9 The need for the development for training programs will be

identified through?

A) Feedback from the employees

B) Feedback from the superiors

C) Management Requirement

D) According to the Company Strategy.

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10 What type of help you got from the CLC (Corporate Learning

Centre ) in the training period at TOBACCO BOARD?

A) Excellent B) Very good

C) Satisfactory D) poor

BIBLIOGRAPHY

1. PERSONNEL MANAGEMENT EDWIN, B. FLIPPO

2. PERSONNEL MANAGEMENT C.B.MEMORIA

3. HUMAN RESOURCE MANAGEMENT K.ASWATHAPPA

4. ORGANISATIONL BEHAVIOR STEPHEN.P. ROBIN

5. HUMAN RESOURCE MANAGEMENT KEITH DAVIS

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WEBSITE: www.itcportal.com

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