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Case Study Unit - I
CASE STUDY ON “GODREJ AND TRAINING & DEVELOPMENT” "Many Indian companies have increased their emphasis on training tremendously. I think it is absolutely essential to spend a lot of money on training and continuous improvement. In our group every employee has to undergo at least five days of training a year." - Adi Godrej, Chairman Godrej Group. Introduction In January 2002, Godrej Industries Ltd. (GIL) bought a 26% stake in "Personalitree Academy Ltd." Personalitree provided interactive soft skills training programmes online to corporates. Personalitree's training modules have since been a part of Godrej's training and development initiatives. It all started in 1996 with the break-up of the joint venture between Godrej Soaps Ltd (GSL) and Proctor and Gamble (P&G). Post break-up, GSL was bereft of a distribution system and had to start from scratch. As part of the rebuilding exercise, GSL recruited about 250 new employees who had to be aligned with its corporate culture. In 1997, GSL conducted a Total Quality Management (TQM) workshop for all its 5000 employees to help them connect to their job. Parivartan was launched in September 2000 in GSL to train new as well as existing employees on various aspects of the business and to motivate them. In 2001, new initiatives like Young Entrepreneurs Board (YEB), Red and Blue Teams, Mentoring and Reverse Mentoring were introduced in the Godrej Group, (Godrej) to encourage the involvement of youth in strategic decisionmaking. In early 2002, a need was felt among the top brass of Godrej to instil a performance- driven culture in the company. In addition to upgrading the talents of existing employees, Godrej had to train new recruits. Thus, Godrej developed a comprehensive and innovative training programme for management trainees and named it Godrej Accelerated Learning Leadership and Orientation Programme (GALLOP). The objective of GALLOP was to develop a newcomer into a professional by giving him or her exposure to various departments and inculcate in him or her,
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the Godrej group entered the processed food and edible oil segment by incorporating Godrej Foods Ltd (GFL). carried on the pioneering work and in 1905 GBML built its first safe.I a sense of belonging. GSL ventured into animal feed in 1971 to help dairy and poultry farmers rear healthier livestock. Thus was GBML born. etc. an English language training programme was held for floor workers of Godrej and Boyce Manufacturing Company Ltd (GBML). It went on to manufacture washing machines and air conditioners. Towards the end of 2002. GBML expanded its range of products by manufacturing office equipment. in October 2003. GBML entered into a joint venture with General Electric (GE). GBML started manufacturing refrigerators. In 1991. In January 2003. was incorporated. His brother. Godrej Pacific commenced operations in 1982 as the Electronic Business Equipment (EBE) Division of GBML. with each company holding 50%. In 1985. GBML started making soaps from vegetable oils and incorporated GSL in 1928.Training and Development Case Study Unit . in September 2002. when Ardeshir Burjorji Godrej (Ardeshir) gave up his legal practice and started manufacturing locks in a small shed at Lalbaug near Mumbai. Godrej entered into a manufacturing and marketing alliance with Proctor & Gamble (P&G). Later. a special HR programme on honing the interpersonal and negotiation skills of officer. In 1993. Further. Egyan was introduced in GIL to increase the learning potential of employees. US and Godrej-GE Appliances was formed. a training programme for managers to help them become effective coaches. thus entering the security equipment business. its first home appliance product. A new company P&G-Godrej Ltd.feed and agricultural input company in 1991-92 and was named Godrej Agrovet Limited (GAVL). Background Note The Godrej story started in 1897. In 1993. Phirozshah Godrej (Phirozshah). In 1990. so that they could follow all instructions issued in that language independently. typewriters. In 1958. Godrej Properties & Investments Limited (GPIL) was incorporated to provide meticulously planned townships. In the early 1920s. GBML ventured into Computer Aided Designing services as part of its EBE division. Godrej & Training and Development Page 2 . tool-room equipment.level employees was launched in GIL. The animal feed division was spun off into a distinctly focused animal. GE exited from the joint venture in 2001 and the appliances business became a division of GBML. GIL introduced Spark.
. Economic Value Added (EVA) Training In 2001. Godrej entered into a joint venture with the US multinational... the manufacturer of the "Good Knight" brand. The venture was the world's largest manufacturer of mosquito repellents. which bought 75% stake in Transelektra Domestic Products Pvt Ltd (TDPL). In 1994. P&G-Godrej Ltd. In 1995. Sara Lee and the new concern was called Godrej-Sara Lee.I The entire distribution network of Godrej was transferred to this company and the joint venture was entrusted with the task of marketing both Godrej and P&G's toilet soap and detergents brands. 'Parivartan' In 2000.. Godrej Infotech Ltd was incorporated in 1999 to offer software solutions. all the 5..7 million. Godrej ventured into the insecticide market through GSL. This training programme was conducted by Stern Stewart.Training and Development Case Study Unit . In March 2001. Over 500 employees were trained to manage EVA by making appropriate decisions involving investments and/or trade-offs between the income statement and the balance sheet. logistics and HR were called on to provide necessary inputs. An extensive training program was undertaken for various managerial and officer levels. to inculcate a `positive work culture' in the company. Total Quality Management (TQM) Workshops Godrej started total quality management (TQM) workshops in 1995..5 per cent of its shareholding in Godrej-Sara Lee to the group holding company GBML for Rs 994. GSL sold 22.000 employees of GSL were put through a three-day workshop as part of the "visioning" session of TQM. The EBE division was spun off into Geometric Software Solutions Ltd in 1994 to offer complete solutions to customers. In August 1996. A team of 18 senior executives from all divisions spanning sales. GSL got demerged and its consumer products division came to be known as Godrej Consumer Products Ltd (GCPL). Godrej introduced Economic Value Added (EVA) in all its group companies. New York based management consultancy who had pioneered the concept Godrej & Training and Development Page 3 . In 1997. In 1999. 'Parivartan' was launched in GSL with the objective of motivating employees as well as imparting knowledge about the sales functions of GSL. terminated the arrangement and Godrej re-took charge of marketing its soap & detergent brands but without a distribution network of its own.
.Training and Development Case Study Unit .... initiated by GIL in September 2002. For example. The training programme was aimed at equipping the managers to become successful coaches.. The trainees were rotated in four departments other than their primary department including a compulsory sales stint..com.learning initiatives. Satyam Education Services Ltd was the content provider and rendered the entire gamut of learning resources through its e-learning portal -learnatsatyam. GALLOP GALLOP was instituted in early 2002 as a structured and organised inductiontraining programme at Godrej. Initially. Spark The objective of the Spark programme. The programme started with an induction speech by the chairman. no specific measures were developed to determine the extent to which the interpersonal and negotiation skills training aided the employees to develop a more robust business concept. was to "train the trainers". This mandatory rotation in sales enabled the trainees to get a hands-on experience in understanding the market. GIL. conducted a host of workshops to enable the managers assume the role of a coach. Internal communication measures like 'enrolment on a first-come-first-serve basis' and 'be the first e-gyanee' were circulated. E-Gyan E-Gyan was the e-learning initiative of GIL launched in the second half of 2002... followed by the speeches by the CEOs of all the group companies. Criticisms One criticism against the training and development programs at Godrej was that there were no measurement techniques to judge the effectiveness of the programs. Troy and Modular Management Development Academy Godrej & Training and Development Page 4 .I of EVA. in association with a Delhi-based HR consultant. GALLOP aimed at nurturing the new recruits into leaders and dynamic performers through this one-year programme.. It was an attempt to move away from traditional training methods of workshops and help sharpen the intellect of the employees by self..
Training and Development Case Study Unit . it was felt by both parties that the best way forward was with the use of a Troy Management Development Academy. The Client Nationwide Crash Repair Centres Ltd is the UK's largest group of accident repair centres. Troy provided a modular Management Development Academy which was designed to target the critical business issues faced by Nationwide and enable its managers to concentrate their learning around the real life issues and leadership challenges facing them in the workplace. Nationwide is by far the largest group of accident repair centres in the UK and is recognised as the market leader in the UK accident repair market. Godrej & Training and Development Page 5 . With a total of 62 bodyshops. interpersonal and organisational skills in their role as Managers enabling them to become the Best in Europe. The key driver for Nationwide and Troy was to provide a consistent and pragmatic business focussed approach. equipment and premises has allowed the company to constantly improve capabilities and capacity. Nationwide wanted a Management Development programme that raised the standard of the managers running its sites. therefore the training programme needed to be able to take into account a range of diverse experiences. Troy spent time with both Nationwide's Regional & General Managers to determine the key skills and behaviours that needed developing. training. Considerable investment in staff.I When Nationwide Crash Repair Centres needed to raise the professional standard of the managers running its sites. In order to maintain its reputation as the market leader. The firm has been operating in the motor industry since 1908 when the founder Harold Perry started the Capital Screen. it turned to Troy Training and Development. Once the situation had been assessed. The Problem Nationwide was faced with increasing demands and requirements on its customer service levels particularly from clients such as insurance companies. The Solution Troy was carrying out customer satisfaction indices (CSI) for Nationwide when it was appointed to conduct a Management Development programme. Its 62 sites are found across the country. Hood & Motor Accessories Company. The aim of the Academy was to assist individuals in further developing key personal.
with the Troy approach ensuring that the training was relevant and timely This resulted in 60 managers being trained in 10 modules over a 2 year period. said: "The Nationwide Academy has been a real opportunity for me to hone my management skills and grow as a manager within the business. and not just 'management theory'. The specific objectives of the Academy were to: • • • • Clarify and develop the role of a Nationwide Manager Provide a range of people management tools and techniques to support the achievement of Nationwide's corpoarte objectives Enable the use of management skills and knowledge within the business environment Build a continual. One of the advantages of the Academy was that it gave me the opportunity to take time out once every 6 . Martin Fletcher. The Benefits Troy's Management Development Academy enabled Nationwide's managers to concentrate their learning around the real life issues and leadership challenges facing them in the workplace.Training and Development Case Study Unit . self reflective process for professional development within a supportive. Commenting on the Academy. Regional Manager for Nationwide. Its practical. real life approach means the modules are focused on what's really happening in our business. learning environment Throughout this process Troy referenced the original results of the CSI as both a pragmatic and targeted way to move forward and as a benchmark for measuring the success of the Academy. Through the Academy.I To achieve this aim.8 weeks and really think about my approach to both my team and my customers. Nationwide saw the following benefits: • • • • Managers were able to expand on their existing skills The Academy was designed specifically for Nationwide to meet the needs of its managers � it was not an �off the shelf' training programme The Modular approach helped identify and focus on personal development needs within their individual roles It was business-focused. Godrej & Training and Development Page 6 . Troy wrote a ten module Academy programme with each module lasting one day.
I When I began the Academy last year I was a General Manager of a site. and a 2 day Customer Care course for 164 of its front line staff.Training and Development Case Study Unit . Godrej & Training and Development Page 7 ." For the Future As a result of its satisfaction with the Academy. and have now been promoted to Regional Manager. Nationwide have now contracted Troy to deliver a 2 day Supervisory Skills course to 54 of its assistant managers.
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