Training and Developing Hdfc Bank

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PROJECT TITLED

A Study on Training & Developmentof HDFC Bank

Submitted by:

_______________________Enrollment no. __________________

Submitted to:

_______________________
http://en.wikipedia.org/wiki/Image:HDFC-Bank-logo.svg


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CERTIFICATE OF ORIGINALITY

This is to certify that the project titled A Study on Training Practices of

Public Sector Banks iis an original work of the Student and is being

submitted in partial fulfillment for the award of the Masters Degree in

Business Administration of Indira Gandhi National Open University. This

report has not been submitted earlier either to this University or to any other

University/Institution for the fulfillment of the requirement of a course of

study.

SIGNATURE OF SUPERVISOR SIGNATURE OF STUDENT

Place: Place:

Date: Date:

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ACKNOWLEDGEMENT

Project work is never the accomplishment of an individual. Rather, it is an

amalgamation of the efforts, ideas and co-operation of a number of entities.

The completion of the project study that follows seemed to be a distant goal,

had it not been for the contributions of a number of people.

I extend a sincerest thanks to my project guide __________________

whose expertise paved the way for realization of the study objectives. The

Guide helped me a lot in each stop of the project and pointed out the area,

which needed more stress and coverage.

The pearls of learning obtained during the course of the project would surely

go a long way in shaping my career.

___________________

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 1

INTRODUCTION 3

COMPANY PROFILE 5

INDUSTRY PROFILE 12

LITERATURE REVIEW 16

OBJECTIVE OF THE STUDY 56

PURPOSE OF THE STUDY 57

SCOPE OF THE STUDY 58

RESEARCH METHODOLOGY 59

TRAINING & DEVELOPMENT AT HDFC BANK 61

DATA ANALYSIS & INTERPRETATIONS 68

RECOMMENDATION 78

CONCLUSION 79

SCOPE OF FUTURE RESEARCH 80

BIBLIOGRAPHY 81

ANNEXURE 82

Personal Policies of HDFC Bank

Questionnaire

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EXECUTIVE SUMMARY

Never before has the rapid increase in new knowledge and technology and

in the base of change and itself demanded a learning response as great as

what is now required to remain competitive. Today individuals and

organizations must become continuous learners to survive and hence it is

not surprising to find that most successful organisations operate in a

continuous learning mode.

The challenge of globalization, technological innovation increasing

competition and growth through expansion, diversification and acquisition

has had a wide-ranging and far reaching impact on HRD. There is a need for

a continuous process that aims at providing fresh knowledge and skill inputs

to the employees so as to ensure the development of their competencies,

dynamism, motivation and effectiveness in a systematic and planned way,

thereby improving the productivity and overall organizational effectiveness.

As a result, training and development activities have acquired great

significance and are now firmly centre-stage in most of the organizations.

Hence it can be said that with the advent of free market economy rapid

change in the environment, training and development activities have

assumed an importance never before witnessed in Indian corporate history.

Training is the process of assisting a person in enhancing his efficiency and

effectiveness at work by improving and updating his professional knowledge

developing his personal skills relevant to his work and cultivating in him

appropriate behavior and attitude towards his work and people he is working

with. Development takes place as a result of training and essentially implies

growth plus change. Thus, training and development go hand in hand. My

endeavor has been to gain an in-depth insight into the process of

discovering, harnessing and developing of the human capital to the benefit

of both the individual and the organization into days highly dynamic and

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competitive business world through a comprehensive study and analysis of

the latest training and development techniques.

In terms of training design the trainer needs to be alert to the demands made

by:

learning

behaviour

results required

For best effects it is important to consider what a particular piece of trainingwill deliver in terms of new knowledge, skills, ideas and abilities and also

what the individual will do with that learning in their job. The trainer will need

to develop a design, which includes or specifies how the learner is to

transfer what they have learned to their workplace and integrate it into day-

to-day standards and behaviours. The final issue to be considered is how

the required results can be measured and be seen to have resulted from the

training provided.

Employees sent to various programs need to be evaluated so as to ascertain

the effectiveness of the program. Many people agree to the basic fact that

no much of a systematic effort towards evaluation exists in the organization.

Goods evaluation is based on careful specification of training objectives and

performance measures that will be used to determine if the training

objectives have been successfully achieved.

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INTRODUCTION

Every organization needs well-trained and experienced people to performthe activities that must be done. A job in today's dynamic organizations have

increasingly become complex, the importance of employee education and

training has increased. When jobs were simple, easy to learn and influenced

only a small degree of technological changes, there was little need for the

employees to upgrade their skills. But the situation has drastically changed

today. Instead, rapid job responsibilities are occurring, requiring employee

skills to be transferred and tuned.

Training is a learning experience in that; it seeks a relatively permanent

change in an individual that will improve the ability to perform on the job.

Training can involve changing of skills, knowledge, attitudes and behaviour.

Training is a prerequisite to improved performance as preparing human

resources for new jobs, transfers, promotions or change over to modern

technology as equipment. In addition to training of new entrants, manpower

at all levels require refreshers' training from time to time to avoid personalobsolescence and improving competency to hold higher positions. Filippo

Lucidly discussed several advantages that stem from training. This includes

increased productivity, heightened morale, reduced supervision, reduced

accidents and increased organizational stability and flexibility. With the

increase in skills, there results an increase in both quality and quantity of

performance. The individuals who are equipped with the requisite training

accomplish the basic human needs such as security and ego satisfaction.Trained employees can perform their work effectively even with little

supervision. It has been recognized that more errors are caused because of

inadequate preparedness on the working conditions. Adequate training on

job skills and positive attitude is likely to minimize rates of errors

considerably. The ability of the organization to maintain its effectiveness

despite the loss of key persons can be accomplished by keeping a reservoir

of trained replacement.

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Training as part of the business

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. However, while this approach helps to

understand how training processes operate, it also puts training at the center

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.

A better approach is to extend the boundaries of the system so training is an

integral part of the business. Banks, which have made this degree of

progress, have taken the first step towards being a 'learning organization'.

Organizational flexibility can be achieved by maintaining highly trained

people with multiple skills to permit their smooth transfer to jobs where the

demand has multiplied. Indeed, a well-trained workforce is the greatest asset

to any organization.

Indian service industry is presently towards a rapid development track.

Improved technology and techniques are being obtained from the developed

countries. New quality systems are being accepted and implemented in the

form of ISO 9000 and QS 9000 Certification. In the light of the transformation

to be achieved, the most important area for concentration in Indian

organization particularly the banking industry would be developing the work

culture conducive for performance excellence. This can be achieved by

giving enormous thrust to human resource management activity in the

organizations, particularly giving training to employees.

Training programs supported to improve job performance, minimize conflicts,

prepare individuals for promotion, and to accept organizational changes

facilitate understanding of organizational goals and attain allied

behavioural activities.

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COMPANY PROFILE

The Housing Development Finance Corporation Limited (HDFC) wasamongst the first to receive an 'in principle' approval from the Reserve Bank

of India (RBI) to set up a bank in the private sector, as part of the RBI's

liberalisation of the Indian Banking Industry in 1994. The bank was

incorporated in August 1994 in the name of 'HDFC Bank Limited', with its

registered office in Mumbai, India. HDFC Bank commenced operations as a

Scheduled Commercial Bank in January 1995.

HDFC is India's premier housing finance company and enjoys an

impeccable track record in India as well as in international markets. Since its

inception in 1977, the Corporation has maintained a consistent and healthy

growth in its operations to remain the market leader in mortgages. Its

outstanding loan portfolio covers well over a million dwelling units. HDFC

has developed significant expertise in retail mortgage loans to different

market segments and also has a large corporate client base for its housing

related credit facilities. With its experience in the financial markets, a strongmarket reputation, large shareholder base and unique consumer franchise,

HDFC was ideally positioned to promote a bank in the Indian environment.

HDFC Bank began operations in 1995 with a simple mission: to be a "World-

class Indian Bank". We realised that only a single-minded focus on product

quality and service excellence would help us get there. Today, we are proud

to say that we are well on our way towards that goal.

Company Vision

To build a World-Class Indian Bank.

It is extremely gratifying that our efforts towards providing customer

convenience have been appreciated both nationally and internationally.

2007

The Asian Banker Excellence in Retail Financial Services Awards

Best Retail Bank in India

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Asian Banker

Our Managing Director Aditya Puri wins the Leadership Achievement Award

for India

2006

Business Today

Best Bank in India.

Forbes Magazine

One of Asia Pacific's Best 50 companies.

Businessworld

Best listed Bank of India.

The Asset Magazine's Triple A Country Awards

Best Domestic Bank.

Asiamoney Awards

Best Local Cash Management Bank in Large and Medium segments.

Euromoney Awards

"Best Bank" in India.

2005

Asiamoney Awards

Best Domestic Commercial Bank

Asiamoney Awards

Best Cash Management Bank - India .

The Asian Banker Excellence

Retail Banking Risk Management Award in India.

Hong Kong-based Finance Asia magazine

Best Bank India

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Economic Times Awards

"Company of the Year" Award for Corporate Excellence.

The Asset Triple A Country Awards

Best Domestic Bank in India Region - 2005

The Business Today-KPMG Survey

Best Local Cash Management Bank in India US$11-100m - 2005

The Business Today-KPMG Survey

"Best Bank in India" for the third consecutive year in 2005.

Economic Times - Avaya Global Connect Customer Responsiveness

Awards

"Most Customer Responsive Company - Banking and Financial Services -

2005

2004

Asiamoney Awards

Best Local Cash Management Bank in India US$11-100m

Asiamoney Awards

Best Local Cash Management Bank in India >US$501m

Asiamoney Awards

Best Local Cash Management Bank in India 1989-2004 (poll of polls)

Asiamoney Awards

Best Overall Domestic Trade Finance Services in India - 2004

Asiamoney Awards

Most Improved company for Best Management Practices in India - 2004

Business World

One of India's Most Respected Companies - 2004

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Forbes Global

Best Under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and

Europe - 2004

Asian Banker Awards

Operational Excellence in Retail Financial Services - 2004


Best Domestic Bank in India - 2004

2003

Forbes Global

Best Under a Billion, 200 Best Small Companies - 2003


Best Domestic Bank in India -2003

BusinessWorld - The Business World Most Respected Company Awards

One of India's Most Respected Companies

The Asset magazine

Best Cash Management Bank

The Asset magazine

Best Trade Finance Bank

FE-Ernst & Young Best Banks Survey

Best New Private Sector Bank - 2003

Outlook Money

Best Bank in the Private Sector 2003

Business Today

Best Bank in India -2003

NASSCOM & economictimes.com - IT Users Awards

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Best IT User in Banking -2003

There have been some other proud moments as well:

London-based Euromoney magazine gave us the award for "Best Bank -

India" in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank in

India" in 2001 and 2002

Asiamoney magazine has named us "Best Commercial Bank in India

2002".

For our use of information technology we have been recognized as a

"Computerworld Honors Laureate" and awarded the 21st Century

Achievement Award in 2002 for Finance, Insurance & Real Estate

category by Computerworld, Inc., USA.

Our technology initiative has been included as a case study in their

online global archives .The Economic Times has conferred on us The

Economic Times Awards for Corporate Excellence as the Emerging

Company of the Year 2000-01.

Leading Indian business magazine Business India named us "India's

Best Bank" in 2000.

In the year 2000, leading financial magazine Forbes Global named us in

its list of "The 300 Best Small Companies" in the world and as one of the

"20 for 2001" best small companies in the world.

We are aware that all these awards are mere milestones in the continuing,

never-ending journey of providing excellent service to our customers. We

are confident, however, that with your feedback and support, we will be able

to maintain and improve our services.

HDFC Bank is headquartered in Mumbai. The Bank at present has an

enviable network of over 684 branches spread over 316 cities across India.

All branches are linked on an online real-time basis. Customers in over 120

locations are also serviced through Telephone Banking. The Bank's

expansion plans take into account the need to have a presence in all major

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industrial and commercial centres where its corporate customers are located

as well as the need to build a strong retail customer base for both deposits

and loan products. Being a clearing/settlement bank to various leading stock

exchanges, the Bank has branches in the centres where the NSE/BSE have

a strong and active member base.

The Bank also has a network of about over 1695 networked ATMs across

these cities. Moreover, HDFC Bank's ATM network can be accessed by all

domestic and international Visa/MasterCard, Visa Electron/Maestro,

Plus/Cirrus and American Express Credit/Charge cardholders.

Retail Banking

Propelled by higher fee-based income and retail banking, HDFC Bank,

countrys third largest bank in market capitalisation, posted a net profit of Rs

321.2 crore for the first quarter ended June 30, 2007. The rise in profit was

34.2% above the June quarter of the previous year.

With a spread of 4.1%, almost 55% of the profit was contributed by the retail

banking segment, said a senior executive of the bank.

The banks Capital Adequacy Ratio (CAR) was at 13.1% as of June 30,

2007, of which tier I CAR was 9.2%. The bank is raising around Rs 3,000

crore of capital shortly through a combination of overseas and domestic

borrowing programme. Though there has been further slippage of stressed

assets in absolute amount, the net non-performing assets of the bank for the

reporting period is pegged at 0.4% of its total advances.

Other income (non-interest revenue), registered a strong growth of 77.3%

from Rs 290.9 crore for the first quarter ended June 30, 2006 to Rs 515.8

crore in the first quarter of the current year.

Other income (non-interest revenue) consisted principally of fees and

commissions of Rs 372.2 crore, foreign exchange and derivatives revenues

of Rs 146.5 crore, and loss on investments of Rs 4.1 crore, as against Rs

290.6 crore, Rs 55.8 crore and Rs 62.29 (loss) crore respectively, for the

quarter ended June 30, 2006.

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The banks total income is estimated at Rs 2,641.7 crore for the quarter

ended June 30, 2007, as against Rs 1,795.2 crore of the corresponding

previous year quarter.

The banks provisions and contingencies for the quarter were Rs 307.1

crore, comprising specific provisions for non-performing assets and general

provision for standard assets of Rs 299.7 crore as against Rs 185.4 crore for

the quarter ended June 30, 2006.

Total balance sheet size as of June 30, 2007, was Rs 105,695 crore, an

increase of 32.6% over June 30, 2006. Banks total deposits were Rs 81,604

crore, 34.6% over Rs 60,630 crore of the previous year quarter. Savings Net

advances at Rs 53,839 crores as of June 30, 2007 were up by 32.7% over

June 30, 2006. Retail loans constituted 57% of the net advances as of June

30, 2007. The banks total customer assets (including advances, corporate

debentures, investments in securitised increased to Rs 45,764 crore in June

30.

DIFFERENT DEPARTMENTS

Middle market

Global Banking

Mutual Funds

Payments

Cash Management

ITSM

Customer service

Trade Service

Home Loan

Personnel Loan

HR

Corporate Sales

Locker

Credit cards

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INDUSTRY PROFILE

a) Origin and development of the industry

Banking Industry in India has always revolved around the traditional function

of deposits and credit. Their role had been defined as to assist the overall

economic growth with majority of share being controlled by the Government

of India in most of the banks. But with the process of liberalization, and the

technological revolution the banking industry has also undergone

tremendous change in the last 5 years. The market, which was largely

controlled by the public sector banks, has now been facing stiff competition

not only from foreign players but also from the new generation private sector

banks. The rules of the game have been changing with the RBI introducing

new norms to make banks more accountable and to adopt the practices

followed worldwide.

Most of the banks have now been trying to function on the concept of a

Universal Bank. Apart from the traditional functions of a commercial bank,

they are taking steps to build themselves into a one stop financial centre

wherein all the financial products would be available. Banks have started

catering to the retail segment to improve their deposit portfolio. In order to

have a maximum share in this segment, most of the banks have been

introducing new products. The delivery channels have also been shifted from

branches to ATMs, phone banking, net banking etc.

Banks traditionally involved in working capital financing have started offering

consumer loans and housing loans. Some of the banks have started offering

travel loans as well. Retail financing is the other area where the banks have

started to concentrate. The loan formalities too have been relaxed to a great

extent and sanctioning time has been speeded up.

History of Banking Industry

Banks are the most prominent and very important part of the financial

economy of India. The performance of banks is completely linked to thegrowth of the economy while the nature and quantum of growth is in turn

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linked to the availability of bank credit. banks have been used by successive

governments to achieve their social, political and economic goals. the

structure of the government banking system has undergone numerous

change since independence. two phases of nationalization, introduction of

regional rural banks in 1975 (to focus on rural spread on banking) and

permission to new private banks to set up operations since 1993-94 are

some of the major changes undergone.

Banking Industry in India has always revolved around the traditional function

of deposits and credit. Their role had been defined as to assist the overall

economic growth with majority of share being controlled by the Government

of India in most of the banks. But with the process of liberalization, and the

technological revolution the banking industry has also undergone

tremendous change in the last 5 years. The market, which was largely

controlled by the public sector banks, has now been facing stiff competition

not only from foreign players but also from the new generation private sector

banks. The rules of the game have been changing with the RBI introducing

new norms to make banks more accountable and to adopt the practicesfollowed worldwide.

Most of the banks have now been trying to function on the concept of a

Universal Bank. Apart from the traditional functions of a commercial bank,

they are taking steps to build themselves into a one stop financial centre

wherein all the financial products would be available. Banks have started

catering to the retail segment to improve their deposit portfolio. In order to

have a maximum share in this segment, most of the banks have been

introducing new products. The delivery channels have also been shifted from

branches to ATMs, phone banking, net banking etc.

Technology has become an important medium of not only attracting new

customers but also in retaining them. The new generation private sector

banks have made a strong presence in the most lucrative business areas in

the country because of technology upgradation. While, their operating

expenses have been falling as compared to the PSU banks, their efficiency

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ratios (employees productivity and profitability ratios) have also improved

significantly.

b) Growth and present status of the industry.

KEY INDUSTRY STATISTICS OF SCHEDULED COMMERCIAL BANKS

(Rs bn)

2006 2007 2008 2009

Total deposits 7140 8132 8729 9928

Demand 1174 1273 1266 1347

Time 5966 6859 7463 7498

Total bank credit 3688 4358 4667 4779

Food 168 256 320 373

non-food 3520 4102 4347 4399

Investments 2545 3088 3332 3347

govt. sec 2232 2784 3023 3038

other approved sec 313 304 309 314

Cash in hand 43 53 53 57

Balance with RBI 635 574 631 656

Cash-Deposit ratio 9.50% 7.70% 7.80% 7.80%

Investment-Deposit ratio 35.70% 38% 38.20% 38.20%

Credit-Deposit ratio 51.70% 53.60% 53.50% 53.50%

Banks traditionally involved in working capital financing have started offering

consumer loans and housing loans. Some of the banks have started offering

travel loans as well. Retail financing is the other area where the banks have

started to concentrate. The loan formalities too have been relaxed to a great

extent and sanctioning time has been speeded up.

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Mergers and Acquisitions have also started playing their role in the banking

industry where lots of players are trying to consolidate their position. The

recent merger of HDFC Bank with Times Bank and ICICI Bank with Bank of

Madura are important steps in this direction. In recent times, most of the new

private sector banks have shown interest in inducting a foreign partner in

their operations.

Most of the banks are also planning to enter the insurance business and are

in the process of identifying their strategic partners. Since most of the banks

already have an extensive distribution network, this new business should

result in substantial revenues. But with most of the top league players

planning to enter this business, the more efficient and pro active players

would be able to take a lead.

c) Future of the industry.

The Indian Banking industry is largely dominated by the public sector banks.

These banks till the early 90s were involved in the traditional banking

business of deposits and credit lending. They performed a supportive role in

the overall growth of the economy. While most of these banks used to focus

on the growth of balance sheet, profitability was not a significant factor in the

competition. In most of the banks, the government has a holding of 100%

whereas in the few banks, the stake has fallen because of a public issue in

the post liberalization period. The government is proposing to bring out a bill

wherein its share in all these banks would stand reduced to 33% from the

current levels.

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LITERATURE REVIEW

Organisations are made up of people and function through people. Withoutpeople organisations cannot exist. The resources of men, money, materials

and machinery are collected, coordinated and utilized through people. These

resources by themselves cannot fulfill the objectives of an organisation.

They need to be united into a team. It is through the combined efforts of

people that material and monetary resources are effectively utilized for the

attainment of common objectives. Without united human efforts, no

organisation can achieve its goals. All the activities of an organisation areinitiated and completed by the persons who make up the organisation.

Therefore, people are the most significant resource of any organisation. This

resource is called human resource and it is the most important factor of

production. According to L.F. Urwick, "business houses are made or broken

in the long run not by markets or capital, patents or equipment but by men."

Of all the resources manpower is the only resource, which does not

depreciate, with the passage of time.

From the national viewpoint, human resources may be defined as "the

knowledge, skills, creative abilities, talents and aptitudes obtained in the

population." From the viewpoint of an organisation, human resources

represent the people at work. They are the sum-total of the inherent abilities,

acquired knowledge and skills as exemplified in the talents and aptitudes of

its employees. According to Jucius, human resources or human factors refer

to "a whole consisting of inter-related, interdependent and interactingphysiological, psychological, sociological and ethical components."

Thus, human resources represent the quantitative and qualitative

measurement of the workforce required in an organisation.

Human resources are characterized by the following features:

(i) Human resources of an organisation are the product of their biological

inheritance and interactions with the environment. Family

relationships, religious influences, caste or racial background,

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educational accomplishments and organisational climate influence the

attitudes, behaviour and performance of human beings.

(ii) Human resources are heterogeneous. They consist of a large number

of individuals each having a unique personality, different needs,

attitudes and values. Each has his own physical and psychological

traits. Most of the problems of an organisation are people-related

problems. These problems arise from the mistaken belief that people

are alike and they can be treated identically. In order to make

effective use of its human resources, an organisation must recognise

and pay attention to differences between individuals so that each

person can maximize his/her potential.

(iii) Human resources are dynamic and behave differently. They react to

the same situation in quite different ways. Even the same individual

may behave differently at two different points of time. It is, therefore,

very difficult to predict human behaviour.

(iv) Human resources are the most important element in an organisation.

The effective utilization of all other resources depends upon the

quality of human resources.

(v) Human resources have the greatest potential to develop and grow

provided the right climate is provided to them. An organisation can

survive and grow if it has the right people at the right time working at

right jobs.

(vi) The term human resources is wider than the term personnel. Humanresources include all the dynamic components of all the people at all

levels in the organisation whereas personnel means the employees

working in the organisation.

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

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to accept increasing responsibilities. 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.

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.

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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

provides for 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:

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

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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

new employees 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 tothe 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.

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 newentrant with several uncertainties in his mind and make his assimilation in

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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.

Managerial and Supervisory Training

The managerial job combines both techniques and conceptual knowledge. Ifit is that of a specialist, it would emphasize some techniques and knowledge

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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, thehigher 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

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govern or influence the standard and scope of training the organization.

Training policies are necessary for the following reasons.

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 intentregarding 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

extent dependent 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.

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- 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.

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 most out 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.

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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". 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 beenpresented 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, in order 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.

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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.

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:

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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, 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

divided into teams representing the management of competing companies.

They simulate the real-life process of taking operation decisions. Decisionstaken are analyzed by a computer, or manually, and a series of the

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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. 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 toexternal 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, whichwould 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 the wages 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

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training methods. Evaluation helps management to answer the following

questions

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

changes if any 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 morerelevant 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

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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.

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 isconsistent 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.

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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 can save 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:

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?

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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 the performance 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.

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 the situation 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 selected applications 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 successful training 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.

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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 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

Level Required forEffective

Performance

Employees ActualLevel

EmployeeDevelopment

EmployeeTraining

Know

ledgeandSkill

Leve

l

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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 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 and employer.

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 employeesfive 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:

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Classroom (trainer led),

Distance learning,

Computer-based training,

On-the-job training,

External courses,

Large-scale workshops,

Attendance at seminars,

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 be considered to be training because the prime purpose of a

quality circle is thought to be solving the companys problems. Any learningthat comes about would be though to be secondary. In fact, this is another

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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 haveobjectives 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 measure, it is the environment and culture of a

important part to play in this, an can help create the environment in whichattitudes 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 withother 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,

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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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Managing the Training Process

Identify needs

Evaluate needs

Select courses

Determine workload

Select trainers

Identify location andresources

Finalize budget

Finalize trainingplan

Pre-course admin

Prepare course

Deliver Course

Validate training

Post-course admin

Transfer learning

Evaluate training

Revise course

Select trainers

Select courses

Select trainers

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Training as part of the Business

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.

Needs Training Skills

and

knowledge

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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.

Assessment

Busine

ssstrateg

y

Actions

Training

CustomerRequirements

Organizationallearning

Individuallearning

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 how much. 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?

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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 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 themsimply 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

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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 balances these 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,

Collect corporate policies and strategies

Identify business needs

Identifymandatory

training

Identify individualneeds

(appraisals, requests,counseling)

Identifydepartmental

needs and skillsfor each job

Identify affected individuals

Enter potential needs on training records

Produce training requirement reports

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financial responsibility,

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

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 foridentifying 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 and take 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 tounderstand both corporate requirements and local issues; the second

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meeting to review draft training plans. Figure shows typical timings for the

two training forum meetings.

MAY JULY/AUGUST OCTOBER

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

meetin

Documents

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