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INTRODUCTION OF TRAINING & DEVELOPMENT

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


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

TRAINING AND DEVELOPMENT DEFINED

It is concerned with the structure and delivery of acquisition of knowledge to improve the
efficiency and effectiveness of organization. It is concerned with improving the existing skills
and exploring the potential skills of the individual i.e. upgrading the employees’ skills and
extending their knowledge. Therefore, training is a key to optimizing utilization human
intellectual technological and entrepreneurial skills

Training and Development referred to as:

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


obligations, tasks and functions.

• Developing the employee’s capabilities so that they may be able to discover their potential
and exploit them to full their own and organizational development purpose.

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


and collaboration among different sub units are strong and contribute to organizational
wealth, dynamism and pride to the employees.

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Development defined

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

Introduction of training

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


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

INPUTS IN TRAINING AND DEVELOPMENT

Any training and development programme must contain inputs which enable the participants
to gain skills, learn theoretical concepts and help acquire vision to look into the distant future.

Skills: Training is imparting skills to employees. A worker needs skills to operate machines,
and use other equipments with least damage and scrap. This is a basic skill without which the
operator will not be able to function. Employees, particularly supervisors and executives, need
interpersonal skills.

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

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


environment, management principles and techniques, human relations, specific industry
analysis is useful for better management of a company.

Ethics: There is need for imparting greater ethical orientation to a training and development
programme. Ethical attitude help managements make better decisions which are in the
interests of the public, the employees and in the long term-the company itself.

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Attitudinal Changes: Attitude represents feelings and beliefs of individuals towards others.
Attitude affects motivation, satisfaction and job commitment. Negative attitude need to be
converting into positive attitude. Attitude must be changed so that employees feel committed
to the organization, are motivated for better performance, and derive satisfaction from their
jobs and the work environment.

Decision making and problem solving skills: It focus on methods and techniques for
making organization decision-making and solving work related problems.

TRAINING AND DEVELOPMENT OBJECTIVES

The principal objective of training and development division is to make sure the availability
of a skilled and willing workforce to an organization. In addition to that, there are four other
objectives: Individual, Organizational, Functional, and Societal.

Individual objectives – help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organization.

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

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


organization’s needs.

Societal Objectives – ensure that an organization is ethically and socially responsible to the
needs and challenges of the society.

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IMPORTANCE OF TRAINING AND DEVELOPMENT

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

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


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

• Team spirit – Training and Development helps in inculcating the sense of team work,
team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the
employees.

• Organization Culture – Training and Development helps to develop and improve the
organizational health culture and effectiveness. It helps in creating the learning culture within
the organization.

• Organization Climate – Training and Development helps building the positive


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

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

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


working environment. It helps to build good employee, relationship so that individual goals
aligns with organizational goal.

• Health and Safety – Training and Development helps in improving the health and safety
of the organization thus preventing obsolescence.

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

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

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


positive attitudes towards profit orientation.

• Training and Development aids in organizational development i.e. Organization gets more
effective decision making and problem solving. It helps in understanding and carrying out
organizational policies

• Training and Development helps in developing leadership skills, motivation, loyalty, better
attitudes, and other aspects that successful workers and managers usually display.

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


optimizing the utilization of human resource that further helps the employee to achieve the
organizational goals as well as their individual goals.

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


opportunity and broad structure for the development of human resources’ technical and
behavioral skills in an organization. It also helps the employees in attaining personal growth.

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


the job knowledge and skills of employees at each level. It helps to expand the horizons of
human intellect and an overall personality of the employee

MODELS OF TRAINING

Training is a sub-system of the organization because the departments such as, marketing &
sales, HR, production, finance, etc depends on training for its survival. Training is a
transforming process that requires some input and in turn it produces output in the form of
knowledge, skills, and attitudes.

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THE TRAINING SYSTEM

The three model of training are:

1. System Model

2. Instructional System Development Model

3. Transitional model

SYSTEM MODEL TRAINING

The system model consists of five phases and should be repeated on a regular basis to make
further improvements. The training should achieve the purpose of helping employee to
perform their work to required standards. The steps involved in System Model of training are
as follows:

1. ANALYZE and identify the training needs i.e. to analyze the department, job, employees
requirement, who needs training, what do they need to learn, estimating training cost, etc The
next step is to develop a performance measure on the basis of which actual performance
would be evaluated.

2. DESIGN and provide training to meet identified needs. This step requires developing
objectives of training, identifying the learning steps, sequencing and structuring the contents

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3. DEVELOP- This phase requires listing the activities in the training program that will
assist the participants to learn, selecting delivery method, examining the training material,
validating information to be imparted to make sure it accomplishes all the goals &
objectives.

4. IMPLEMENTING is the hardest part of the system because one wrong step can lead
to the failure of whole training program.

5. EVALUATING each phase so as to make sure it has achieved its aim in terms of
subsequent work performance. Making necessary amendments to any of the previous
stage in order to remedy or improve failure practices

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TRANSITIONAL MODEL

Transitional model focuses on the organization as a whole. The outer loop describes the
vision, mission and values of the organization on the basis of which training model i.e.
inner loop is executed.

VISION – focuses on the milestones that the organization would like to achieve after the
defined point of time. A vision statement tells that where the organization sees itself few
years down the line. A vision may include setting a role mode, or bringing some internal
transformation, or may be promising to meet some other deadlines.

MISSION – explain the reason of organizational existence. It identifies the position in the
community. The reason of developing a mission statement is to motivate, inspire, and
inform the employees regarding the organization.The mission statement tells about the
identity that how the organization would like to be viewed by the customers, employees,
and all other stakeholders.

VALUES – is the translation of vision and mission into communicable ideals. It reflects
the deeply held values of the organization and is independent of current industry
environment. For example, values may include social responsibility, excellent customer
service, etc

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The mission, vision, and values precede the objective in the inner loop. This model
considers the organization as a whole. The objective is formulated keeping these three
things in mind and then the training model is further implemented

INSTRUCTIONAL SYSTEM DEVELOPMENT (ISD) MODEL

Instructional System Development model was made to answer the training problems. This
model is widely used now-a-days in the organization because it is concerned with the
training need on the job performance. Training objectives are defined on the basis of job
responsibilities and job description and on the basis of the defined objectives individual
progress is measured. This model also helps in determining and developing the favorable
strategies, sequencing the content, and delivering media for the types of training
objectives to be achieved. The Instructional System Development model comprises of five
stages:

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

2. PLANNING – This phase consist of setting goal of the learning outcome, instructional
objectives that measures behavior of a participant after the training, types of training
material, media selection, methods of evaluating the trainee, trainer and the training
program, strategies to impart knowledge i.e. selection of content, sequencing of content,
etc

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


consists of developing course material for the trainer including handouts, workbooks,
visual aids, demonstration props, etc, course material for the trainee including handouts of
summary.

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


speakers, equipments, benches, podium, food facilities, cooling, lighting, parking, and
other training accessories.

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5. EVALUATION – The purpose of this phase is to make sure that the training program
has achieved its aim in terms of subsequent work performance. This phase consists of
identifying strengths and weaknesses and making necessary amendments to any of the
previous stage in order to remedy or improve failure practices.

The ISD model is a continuous process that lasts throughout the training program. It also
highlights that feedback is an important phase throughout the entire training program. In
this model, the output of one phase is an input to the next phase.

PROCESS OF TRAINING

TRAINING NEED TRAINING


ANALYSIS
DESIGN

TRAINING
PROCESS

TRAINING TRAINING
EVALUATION IMPLEMENTAT
ION

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TRAINING NEED ANALYSIS (TNA)/TRAINING NEED


IDENTIFICATION (TNI)

An analysis of training need is an essential requirement to the design of effective training. The
purpose of training need analysis is to determine whether there is a gap between what is
required for effective performance and present level of performance.

Training Need arises at three levels:

• Organizational level
• Individual level
• Operational level

Corporate need and training need are interdependent because the organization performance
ultimately depends on the performance of its individual employee and its subgroup.

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


planning, business need, and goals. It starts with the assessment of internal environment of the
organization such as, procedures, structures, policies, strengths, and weaknesses and external
environment such as opportunities and threats. After doing the SWOT analysis, weaknesses
can be dealt with the training interventions, while strengths can further be strengthened with
continued training. Threats can be reduced by identifying the areas where training is required.
And, opportunities can be exploited by balancing it against costs. For this approach to be
successful, the HR department of the company requires to be involved in strategic planning.
In this planning, HR develops strategies to be sure that the employees in the organization have
the required Knowledge, Skills, and Attributes (KSAs) based on the future KSAs
requirements at each level.

Individual level – Training need analysis at individual level focuses on each and every
individual in the organization. At this level, the organization checks whether an employee is
performing at desired level or the performance is below expectation. If the difference between
the expected performance and actual performance comes out to be positive, then certainly
there is a need of training. However, individual competence can also be linked to individual
need. The methods that are used to analyze the individual need are:

• Appraisal and performance review

• Peer appraisal

• Competency assessments

• Subordinate appraisal

• Client feedback

• Customer feedback

• Self-assessment or self-appraisal

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Operational level – Training Need analysis at operational level focuses on the work that is
being assigned to the employees. The job analyst gathers the information on whether the job
is clearly understood by an employee or not. He gathers this information through technical
interview, observation, psychological test; questionnaires asking the closed ended as well as
open ended questions, etc. Today, jobs are dynamic and keep changing over the time.
Employees need to prepare for these changes. The job analyst also gathers information on the
tasks needs to be done plus the tasks that will be required in the future. Based on the
information collected, training Need analysis (TNA) is done.

Benefits of need assessment

Training programs are designed to achieve specific goals that meet felt needs. There are many
benefits of need assessment:

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


2. Trainers are able to pitch their course inputs closer to the specific needs of the trainees.
3. Assessment makes training department more accountable and more clearly linked to other
human resource activities, which make the training programs easier to sell to line
managers.

TRAINING-DESIGN

The design of the training program can be undertaken only when a clear training objective
has been produced. The training objective clears what goal has to be achieved by the end of
training program i.e. what the trainees are expected to be able to do at the end of their
training. Training objectives assist trainers to design the training program.

The trainer – Before starting a training program, a trainer analyzes his technical,
interpersonal, judgmental skills in order to deliver quality content to trainers.

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The trainees – A good training design requires close scrutiny of the trainees and their
profiles. Age, experience, needs and expectations of the trainees are some of the important
factors that affect training design.

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


programme. A training programme involves cost of different types. These may be in the form
of direct expenses incurred in training, cost of training material to be provided, arrangement
of physical facilities and refreshment, etc. Besides these expenses the organization has to bear
indirect cost in the form of loss of production during training period. Ideally, a training
programme must be able to generate more revenues than the cost involved.

Training climate – A good training climate comprises of ambience, tone, feelings, positive
perception for training program, etc. Therefore, when the climate is favorable nothing goes
wrong but when the climate is unfavorable, almost everything goes wrong.

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TRAINING-DESIGN

Trainees’ learning style – the learning style, age, experience, educational background of
trainees must be kept in mind in order to get the right pitch to the design of the program.

Training strategies – Once the training objective has been identified, the trainer translates
it into specific training areas and modules. The trainer prepares the priority list of about what
must be included, what could be included.

Training topics – After formulating a strategy, trainer decides upon the content to be
delivered. Trainers break the content into headings, topics, ad modules. These topics and
modules are then classified into information, knowledge, skills, and attitudes.

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

• From simple to complex

• Topics are arranged in terms of their relative importance

• From known to unknown

• From specific to general

• Dependent relationship

Training tactics – Once the objectives and the strategy of the training program becomes
clear, trainer comes in the position to select most appropriate tactics or methods or techniques.
The method selection depends on the following factors:

• Trainees’ background

• Time allocated

• Style preference of trainer

• Level of competence of trainer

• Availability of facilities and resources, etc

Support facilities – IT can be segregated into printed and audio visual. The various
requirements in a training program are white boards, flip charts, markers, etc.

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

• Time

• Accommodation, facilities and their availability

• Furnishings and equipments

• Budget

• Design of the training, etc

TRAINING IMPLEMENTATION

To put training program into effect according to definite plan or procedure is called training
implementation. Training implementation is the hardest part of the system because one wrong
step can lead to the failure of whole training program. Even the best training program will fail
due to one wrong action. Training implementation can be segregated into:

• Practical administrative arrangements

• Carrying out of the training

Once the staff, course, content, equipments, topics are ready, the training is implemented.
Completing training design does not mean that the work is done because implementation

phase requires continual adjusting, redesigning, and refining. Preparation is the most
important factor to taste the success. Therefore, following are the factors that are kept in mind
while implementing training program:

The trainer – The trainer need to be prepared mentally before the delivery of content.
Trainer prepares materials and activities well in advance. The trainer also set grounds before
meeting with participants by making sure that he is comfortable with course content and is
flexible in his approach.

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Physical set-up – Good physical set up is pre-requisite for effective and successful training
program because it makes the first impression on participants. Classrooms should not be very
small or big but as nearly square as possible. This will bring people together both physically
and psychologically. Also, right amount of space should be allocated to every participant.

Establishing rapport with participants – There are various ways by which a trainer can
establish good rapport with trainees by:

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


• Encouraging informal conversation

• Remembering their first name

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

• Listening carefully to trainees’ comments and opinions

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

• Getting to class before the arrival of learners

• Starting the class promptly at the scheduled time

• Using familiar examples

• Varying his instructional techniques

• Using the alternate approach if one seems to bog down

Reviewing the agenda – At the beginning of the training program it is very important to
review the program objective. The trainer must tell the participants the goal of the program,
what is expected out of trainers to do at the end of the program, and how the program will run.
The following information needs to be included:

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• Kinds of training activities

• Schedule

• Setting group norms

• Housekeeping arrangements

• Flow of the program

• Handling problematic situations

In general programme implementation involves action on the following lines:

• Deciding the location and organizing training and other facilities.


• Scheduling the training programme.
• Conducting the programme.
• Monitoring the progress of the trainees.

TRAINING EVALUATION

The process of examining a training program is called training evaluation. Training evaluation
checks whether training has had the desired effect. Training evaluation ensures that whether
candidates are able to implement their learning in their respective workplaces, or to the
regular work routines.

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Purposes of Training Evaluation

The five main purposes of training evaluation are:

Feedback: It helps in giving feedback to the candidates by defining the objectives and linking
it to learning outcomes.

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


knowledge at the work place, and training

Control: It helps in controlling the training program because if the training is not effective,
then it can be dealt with accordingly.

Power games: At times, the top management (higher authoritative employee) uses the
evaluative data to manipulate it for their own benefits.

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

Functions of evaluation:

There are basically two functions of evaluation:

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


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

Principles of Training Evaluation:

Training need should be identified and reviewed concurrently with the business and
personal development plan process.

a) Evaluation must be continuous.


b) Evaluation must be specific.
c) Evaluation must be based on objective methods and standards.
d) There should be correlation to the needs of the business and the individual.
e) Organizational, group and individual level training need should be identified and
evaluated.
f) Techniques of evaluation should be appropriate.
g) The evaluation function should be in place before the training takes place.
h) The outcome of evaluation should be used to inform the business and training process.

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Need of evaluation of Training:

Training cost can be significant in any business. Most organizations are prepared to incur
these cost because they expect that their business to benefit from employees development and
progress. Whether business has benefited can be assessed by evaluation training.

There are basically four parties involved in evaluating the result of any training. Trainer,
Trainee, Training and Development department and Line Manager.

• The Trainee wants to confirm that the course has met personal expectations and satisfied any
learning objectives set by the T & D department at the beginning of the programme.
• The Trainer concern is to ensure that the training that has been provided is effective or not.
• Training and Development want to know whether the course has made the best use of the
resources available.
• The Line manager will be seeking reassurance that the time hat trainee has spent in attending
training results in to value and how deficiency in knowledge and skill redressed.

The problem for many organizations is not so much why training should be evaluated but
how. Most of the organizations overlook evaluation because financial benefits are difficult to
describe in concrete terms.

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

• Whether training budget is well spent


• To judge the performance of employee as individual and team.
• To establish culture of continuous learning and improvement.

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PROCESS OF TRAINING EVALUATION

Before Training: The learner’s skills and knowledge are assessed before the training
program. During the start of training, candidates generally perceive it as a waste of resources
because at most of the times candidates are unaware of the objectives and learning outcomes
of the program. Once aware, they are asked to give their opinions on the methods used and
whether those methods confirm to the candidates preferences and learning style

During Training: It is the phase at which instruction is started. This phase usually consist
of short tests at regular intervals.

After Training: It is the phase when learner’s skills and knowledge are assessed again to
measure the effectiveness of the training. This phase is designed to determine whether
training has had the desired effect at individual department and organizational levels. There
are various evaluation techniques for this phase.

Techniques of evaluation

The various methods of training evaluation are:

• Observation

• Questionnaire

• Interview

• Self diaries

• Self recording of specific incidents

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WHAT TO EVALUATE/LEVEL OF EVALUATION

Donald Kirkpatrick developed four level models to assess training effectiveness. According to
him evaluation always begins with level first and should move through other levels in
sequence.

• Reaction Level: The purpose is to measure the individual reaction to the training activity.
The benefit of Reaction level evaluation is to improve Training and Development activity
efficiency and effectiveness.
• Learning Level: The basic purpose is to measure the learning transfer achieved by the
training and development activity. Another purpose is to determine to what extent the
individual increased their knowledge, skills and changed their attitudes by applying
quantitative or qualitative assessment methods
• Behavior Level: The basic purpose is to measure changes in behavior of the individual as
a result of the training and development activity and how well the enhancement of
knowledge, skill, attitudes has prepared than for their role.
• Result Level: The purpose is to measure the contribution of training and development to
the achievement of the business/operational goals.

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INDUSTRY PROFILE

TOBACCO IN INDIA:

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

a significant player in the global market ranking and occupying position ninth in the

export. Tobacco is grown in India for every 400 Hectors. Cigarette tobacco has been

cultivated for nearly 90 years.

TYPES OF TOBACCO:
1. Flue Curved Tobacco

2. Sun Curved Tobacco

3. Bidi Tobacco

4. Cigarette Tobacco

5. Burley Tobacco

6. Cheroot Tobacco

7. Hookah 4 chewing Tobacco

8. Air curved Tobacco

9. Fire Curved Tobacco

10. Oriented Tobacco

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 Over 550 million Kg of tobacco is grown annually, with flue curved Virginia (FCV)

and Burley tobaccos accounting for approximi9alately 200 million Kg s. Nearly 50 %

of FCV crop is exported, making India . The fourth largest grower and exported of

FCV tobacco in the world. Light soil burley and air- curved tobaccos are also

exported.

 4, 00,000 hectors of land is under tobacco cultivation. Nearly 6 million people are

involved in the process. It is generating employment for every 30 million people

with collective wages amounting to $520 million annually.

 Excise collections from the tobacco industry are about $1.2 billion annually with

cigarette tobacco’s accounting for nearly 90%of the revenge generated. Andhra

Pradesh and Karnataka in the southern part of India are main cigarette tobacco

growers.

 India has the climate, soil and skills to produce a quality tobacco that is preferred

internationally. Guntur in A.P is the tobacco of the country there cigarette tobacco

growing, auctioning and trading began. The near by port of CHENNAU handles

the bulk of tobacco export consignments.

 Strong entry barriers of brand equity and distribution network characterize the

cigarette business. Buildings up brand are particularly difficult in this business as

TV and video adverstiment are restricted in India. Some stats have banned

smoking in public places. Brand loyalties nevertheless are strong as product

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consumed as addition cannot be differentiated much on performance. Building up

a distribution network is an equally drawing task as the product is distributed

network is an equally drawings task as the product is distributed through sources

of small roadside pan and bidi shops all over country.

 World over the cigarette industry is facing serious problems in developed

countries, it has more or less reached a level of stagnation and even experience

negative growth. This is mainly because of growing health consciousness, steep

duty likes and subsequent price increase had led to a slowdown. Besides

restrictions on smoking are public places ban on sales in railway stations has an

adverse impact on retail cigarette off take. Another area of concern for the

cigarette industry has been the free availability of smuggled brands in the country.

 Cigarettes come under the category of fast moving consumer goods. As such

strong brand names and aggressive marketing assume importance. The industry

therefore undertakes massive investment in brand promotion and setting up of a

marketing infrastructure. The people directly employed in the cigarette industry

are around 4.5 million.

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

0.3% of the total cropped are India is the third largest producer with production

of 590 million Kg after China and the U.S.

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 2/3rd of Indian tobacco is used in non-cigarette a product of the left over 1/3, half

is exported. Tobacco contributes over Rs.25, 000 million by way of excise revenue

and earns over Rs. 5,000 million by way of foreign exchange.

 Among various types Virginia Flue curved is the most important. Tobacco yield in

India at around 1,486 Kg per hectares. Cigarette industry is broadly classified into

filter and non-filter and further sub classified based on the length.

 The campaign against smoking is mainly directed against cigarettes. The bidi and

chewing product manufactures who primarily fall into the unorganized and small-

scale sectors have more or less escaped the problem.

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

for 27% cigarettes as an industry account for around 20% of the tobacco

consumption in the country.

 India’s cigarette industry experienced a growth rate of 10% during 1994-1995 to

1997-1998 mainly because of incentive in the form of lower excise duty but a

present cigarette companies are forced to operate under adverse factors both

internal and external.

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

collections from the tobacco segment.

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 The growth of the industry largely depends on the excise policies of the govt. price

sensitivity can be seen particularly at the lower end of the market.

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

being smuggled India, like many other developing countries, has become a

cigarette smuggler’s paradise out of 97 billion cigarette sticks sold in India. Each

year about 5 billion are smuggled in leading to a loss of about Rs.20, 000 million

in revenue. Out of every 100 packages of smuggled cigarettes sold in the country,

70 to 80 packages are Marlboro lights produced by US based Philip Morris the top

cigarette producer in the world.

 The tobacco companies will be required to indicate nicotine and tar content in

each cigarette in cigar. This information will need to be published on each packet

in the English & Indian languages. All violations will lead to confiscation of goods.

 According to Premed Maharaja Parliamentary affairs mini8ster, the following

products will be covered in the new legislation. Cigarettes, cigars, cigarette,

tobacco pipe tobacco, hukka tobacco, chewing tobacco, panmasala, gutka, or any

nother chewing masala.

 India has one of the highest rates of taxation among countries improving a

specific tax on cigarettes. Infect, about 605 of the price of cigarette in India

represents excise cigarette contribute nearly 10% of the total excise to the

exchequer. The industry contribution over Rs. 60 billion a years as excise duty.

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

tobacco use, particularly bidis, which are even more of a health hazard than

cigarettes and practically pay no taxes.

 The advertising standards council of India (ASCI) has adopted a code, which

requires that the advertisements of tobacco-based products should not:

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

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

successive various areas.

3. Successive various areas of human Endeavour.

4. Imply any link between tobacco use and manliness female emancipation.

5. Contain any endorsement of tobacco use by celebrities.

6. Depict any model below the age of 25.

7. Show any model smoking or chewing tobacco.

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MAJOR PLAYERS:

INDIAN TOBACCO COMPANY LTD:

ITC is the market leader in the country. It has a market share of 67% in

volume terms and the largest distribution networks in the country sale of cigarettes

by ITC feel by 2.37% during 1999-2000 to 77.15 billion sticks from 67.5 billion sticks

in 1998-1999 total revenue increased by 6.18% to Rs.69, 400 from Rest. 65,360

million in the pervious year.

GODFREY PHILIPS INDIA LTD:

GPI is the second largest player in the Indian cigarette industry is a

joint venture with global cigarette major Phillip marries. Gpi’s leading brands include

jaisalmer, four square, red & white and originals.

VAZR SULTAN TOBACCO (VST)

 It is primary in the business of manufacturing and marketing of

cigarettes. The companies major brands are Chaminar, Charms and Gold

premium these have several brand extensions.

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

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

either encourage smokers to mover to filter cigarettes or to tie the tax rate to

tar and nicotine context. Tax rate to tar and nicotine content.

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

OBJECTIVES OF THE STUDY

 Increase India’s market share in the international tobacco market and project

ILTD/India as a reliable competitive quality supplier

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

domestic and export requirement.

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

demand situation.

 Enhance our competitive edge in all spheres to match international

competition/standards help seize international opportunities.

 Explore cheaper and effective financing options and strengths cost control

measures.

 To strengthen Human Resource Mechanisms in order to mobiles Human

Resource at all levels to ensure competitiveness and contemporariness of the

division.

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SCOPE OF THE STUDY

To develop a work culture conductive to learning to learning and make

continuous and appropriate investments (time, effort & money) in human resource

for competence enhancement with a view to making them effective and comtempary

and thus help achieve the division’s objective in an increasingly competitive cigarette

tobacco market.

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LIMITATIONS OF THE STUDY

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

 Sampling size is restricted to only certain limited employees.

 The study is related only to ITC Guntur.

 Some people were reluctant to answer the questionnaire.

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

 There may be a change of personal bias.

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

from the questionnaire.

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METHODOLOGY OF THE STUDY:

The data pertaining to the opinions and feedback of the employees has

been obtained from the primary source. The information about profile-integrated

plan etc, have been obtained from secondary sources. An exhaustive study has been

made to meet the above-mentioned objectives.

SOURCES:

Mainly primary source and then secondary source.

Primary Data:

The primary data is collected through personal interview with

employees, by questionnaires.

Secondary data:

The sources of secondary data are,

 Internet

 Brochures, Magazines, Annual reports of the organization.

Sample size:

The total population of 20 constituted the study.

Statistical tools used:

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1. Percentages

2. Pie charts

COMPANY PROFILE

British American Tobacco started its tobacco trading in India on 24 th

August 1910 by name “Imperial Tobacco Company of India Ltd.”. Later the company

amalgamated with peninsular tobacco company and Indian Tobacco Development

Company. In the year 1970 it changed its name to “India Tobacco Company (ITC)”

and registered in 1974 as ITC Ltd.

 ITC Limited headed by Chairman Y.C. Deveshwar is one of the India’s

largest private sector companies with an annual turnover of over $ 1.7

billion.

ITC’S PRPTOFOLIO OF BUSINESS:

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

capitalization of over US $ 16 billion and a turnover of US $ 3 billion. Rated among

the world’s best big companies by Forbes Magazine, Itc ranks 3rd on all major profit

parameters among India’s private sector corporations. Itc has a diversified presence

and specialty papers, packaging, agri businesses, packaged foods and confectionery,

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

outstanding market leader in its traditional business of in cigarettes, hotels, paper

boards packaging, agri-businesses, it is rapidly gaining market share even in its

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nascent businesses of packaged foods and confectionery, branded apparel, greeting

cards.

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

perceived to be dedicatedly nation oriented. Chairmen Y.C Deveshwar calls this

source of this inspiration “a commitment beyond the market”. In his own words: “ITC

belives that its aspiration to create enduring value for the nation provides the motive

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

driving each of its business towards international competitiveness but by also

consci0ously contributing to enhancing the competitiveness of the larger value chain

of which it is a part”.

 ITC’s diversified status originates from its corporate strategy aimed at creating

multiple drives of growth anchored on its time- tested core competencies: and

matched distribution reach, superior brand-buildings capabilities, effective supply

chain management and acknowledged service services in hoteliering. Over time, the

strategic forays into new business are expected to garner a significant share of these

emerging high- growth markets in India.

 ITC’s Agri-business is one of India’s largest exporters of agricultural products.

ITC is one of the countries biggest foreign exchange earns (US $ 2 billion last

decade). The company’s ‘e-choupal’ initiate is enabling Indian agriculture

significantly enhance its competitiveness by empowering Indian farmers through the

power of the internet. This transformation strategy, which has already become the

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

progressively create for ITC a huge rural distribution infrastructure, significantly

enhancing the companies marketing the reach.

 ITC’s wholly owned information technology subsidiary, ITC InfoTech India

Ltd is aggressively pursing emerging opportunities in providing end-to-end IT

solutions, including e-enabled services and business process outsourcing.

 ITC’s production facilities and hotels have won numerous national and

international awards for quality, productivity, and safety and environment

management systems. ITC was the first company in India to be rated for corporate

governance by ICRA, an associate of Moody’s investors service, which accorded it the

second highest rating, signifying “a high level of assurance on the quality of corporate

governance”.

 ITC employees over 20000 people at more than 60 locations across India.

Ranked among India’s most valuable companies by the ‘Business Today’ magazine,

ITC continuously endeavors to enhance its wealth generating capabilities in a

globalizing environment to consistently reward more than 3.92,488 share holders,

fulfill the aspirations of its state holders and meet societal expectations. This over-

arching vision of the companies expressively captured in its cooperating positioning

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

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ORGANIZATIONAL STRUCTURE OF ITC LTD:

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

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

each is having its own divisional head quarters with registered office at 37,

chowringhee, Calcutta.

S.NO NAME OF THE DIVISION BUSINESS ACTIVITES


TRADE INVESTMENT OF ITC LTD:
1 INDIA TOBACCO DIVISION Manufactures and sells cigarettes and
CALCUTTA smoking tobaccos in domestic and export
markets.

2 PACKAGING AND PRINTING Manufactures and sells printed packaging


CHENNAI materials for export and domestic
markets.

3 INDIAN LEAF TOBACCO Develops, purchases, processes and sells


DEVELOPMENT DIVISION un manufactures tobacco for the export
GUNTUR and domestic markets.

4 HOTELS DIVISION The owned hotels of the being operated


NEWDELHI by ITC Hotels Ltd.

5 INTERNATIONAL BUSINESS Exports of Agri-products, Aqua Foods.


DIVISION CALCUTTA

6 TRIBUNE TISSUES DIVISION Manufactures and sells wide range of


CALCUTTA specially papers for various applications.
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ITC has promoted the following business as part of its diversification

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

the trade investments companies and their business activities.

Name Of The Company Business Activities

RUSSELL CREDIT LIMITED FMCG & Tobacco, Hotels & tourism


paper

GOLD FLAKE CORPORATION Manufacture and sale of cigarette filter


LIMITED & WILLS rods.
CORPORATION LIMITED

LAND BASE INDIA LIMITED Classic Golf Resort

BLIF FINANCE LIMITED It was originally promoted as a financial


services company. It is currently engaged
only in recovery of its dues.

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

SURYA NEPAL PRIVATE LIMITED Manufacture and sale of cigarettes and


garments.

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

JOINT VENTURE OF ITC LIMITED Trading in cigarettes and ‘roll-your-own’


smoking mixtures in USA.

ITC LEADER SHIP:

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Flowing from the concept and principles of corporate

governance adapted by the company, leadership within ITC is exercised

at three levels.

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

responsibility for strategic supervision of the company.

 The strategic management of the company rests with the corporate

Management committee comprising the whole time Directors and members

drawn from senior management.

 The executive management of each business division is vested with the

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

Each DMC is responsible for and totally focused on the management of its

assigned business.

This three- tiered inter linked leadership process creates a

wholesome balance between the need for focus and executive freedom, and the

need for supervision and control.

PRODUCT GROUPS:

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A) Cigarettes & Tobacco:

 Tobacco consumption has been a traditional feature of consumer

preference in India, over several centuries. The current annual value of

consumer spending in the tobacco sector in India is estimated at over 4s

23,000 crs.

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

invaluable brands, it has a leadership position in every segment of the

market. It’s highly popular portfolio of brands includes India Kings, Gold

Flake, Navy Cut, Scissors, Capstan, Berkeley and Bristol.

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

enhancing product values through significant investments in product

design, manufacturing technology, quality, marketing and distribution. In

just the last 5 years, ITC has made capital investments of over Rs.7 billion

in its cigarettes business. In ITC one of the pioneers of market research in

India, the consumer is still the King. The company continuously endeavors

to provide its consumers products that are benchmarked to international

quality. This strategic focus on the consumer has paid ITC handsome

dividends.

 The most important of these is its enriched product mix, unmatched by

competition. ITC’s share of filter cigarettes in Country is more than 70%.

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 In pursuit of international competitiveness, ITC has launched four

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

competitive US market. Recently ITC has launched Royal Classic, Gold Cut

and Scissors Filter Kings cigarettes in the Middle-East. The response of

these brands has been encouraging. ITC’s cigarettes are produced in its

state of-the-art factories at Bangalore, Munger, Saharanpur, and Kolkata.

These factories are known for their high levels of productivity and very

contemporary and work environment.

INDIA TOBACCO DIVISION:

 ITC pioneered the manufacture of cigarettes in India and has since 1910

maintained its leader position in industry the company’s India tobacco

division makes the widest range of cigarettes in the country with brand

leaders in every segment of the market five of its trade marks Gold Flake,

Wills Scissors, Bristol & Capstan features among the top six in the industry.

ITC also boasts of a dominant market share by its popular trade marks. The

Gold make family continues to be the largest single trademark in the

consumer product sector and wills is the largest free standing consumer

product brand in India in the premium segment, India Kings and Classic

enjoy preeminence.

LIST OF AWARDS:

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ITC’s cigarettes business has own numerous awards for its

quality, environmental management systems and product excellence:

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

Saharanpur factories.

 The Kolkata factory has won the prestigious Greentech safety Gold award for

the year 2003-04 in the manufacturing sector. This award is in recognition of

the high level of performance that the unit has achieved in environment

Health & Safety (EHS).

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

awarded the OHSAS: 18001 Certificate by Det Norske Veritas (DNV) for their

occupational Health and Safety Management Systems (OHSMS).

 The Kolkata factory has been placed First in Category ‘B’ for having made the

best efforts towards Safety Management in the Safety context of the

Confederation of Indian Industry-Eastern Region (CII-ER).

 This award recognizes ITC e-Choupal as an exemplary contribution towards

development and poverty alleviation leveraging information and

communication technologies (ICT).

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 Corporate social responsibility award from the energy and resources institute

(TERI) 2005.

 Golden Peacock global award for CSR in emerging economies 2005.

VISION:

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

through world class performance, creating growing value for Indian Economy and the

company’s shareholders.

MISSION:

To enhance the wealth generating capability to the enterprise in a

globalizing environment, delivering superior and sustainable shareholder value.

INDIAN LEAF TOBACCO DEVELOPMENT DIVISION:

 The leaf tobacco arm of ITC Ltd

 The largest buyer, processor and

 Exporter of Indian cigarette tobaccos

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 Committed to tobacco crop development through Fundamental

and Applied research

 A professionally managed progressive institution with proven

leadership in the Indian tobacco industry

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

development of cigarette tobaccos in India. Our efforts in cigarette tobacco

development and export marketing have enabled India to become the fifth largest

cigarette tobacco producer and the eighth largest exporter of cigarette type tobaccos

in the world.

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

located in the cigarette tobacco growing regions of India.

ILTD believes in building an enduring relationship with you to create a

unique competitive advantage that will enable you to win in the global market place.

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a) FOODS:

 ITC made its entry into the branded & packaged foods business in August 2001

with the launch of the Kitchens of India brand. A more board entry has been

made since June 2002 with brand launches in confectionery, Staples and

Snack Foods segments.

 The foods business carries forward this proud tradition to deliver quality food

products to the consumer. All products of ITC’s Food business available in the

market today have been crafted bade on consumer insights developed through

extensive market research. Apart from the current portfolio of products,

several new and innovative products are under development in ITC’s state-of-

the-art product development facility located at Bangalore.

 Leadership in the Foods business requires a keen undertaking of the supply

chain for agricultural produce. ITC has over the last 90 years established a very

close business relationship with the farming community in India and is

currently in the process of enhancing the Indian formers ability to link to

global markets, through the e-Choupal initiative, and produced the quality

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

in sourcing best quality agricultural produced for ITC’s Foods business?

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b) LIFE STYLE RETAILING:

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

established a Nation wide retailing presence through its Wills Lifestyle chain of

exclusive specialty stores. Beginning with its initial offering of Wills sport

relaxed wear from the first store at South Extension, New Delhi in July 2000,

it has expanded its basket of offering to the premium consumer with Wills

Classic work wear, Wills Club life eveningwear and a tempting range of

designer accessories that complete the Look.

 With a distinctive presence across segment at the premium end, ITC has

also established john Players as a brand that offers a complete fashion

wardrobe to the youth of today. With its brands, ITC aspires to build a

dominant presence in the apparel market through a robust portfolio of

offerings.

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

the change that comes through actively exploring one’s own multifaceted ness

and stretching one’s limits. This season, Wills Life Style presents a complete

fashion Wardrobe that complements every facet of your Lifestyle – at work,

when you’re relaxed and while you party.

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c) PAPER BOARDS AND SPECIALITY PAPERS:

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

of packaging and graphic series of boards. ITC’s Paper Boards business has a

manufacturing capacity of3, 60,000 tones per every year and is India’s market

leader across all carton – consuming segments including cigarettes, foods,

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

 In 1998 the paper boards business commissioned a new production line

for coated boards. This production line incorporated paper machine 4, which

was equipped with a capacity of 1, 20,000 tones per annum (TPA), and

finishing equipment sourced from internationally renowned suppliers. This

machine has been fitted with a sophisticated Web Detection and inspection

system.

 The recently commissioned paper Machine 5 at Bhadrachalam has a

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

proposition in both virgin and recycled boards. This will further strengthen

ITC’s leadership position in the value added paperboard.

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d) SPECIALITY PAPERS:

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

to the Tribeni Unit ITC- PSPD. ISO 9001 accreditation in November 1999 from

Lloyds Register, which has certified most of the leading cigarette paper

manufactures in the world.

 Competition in specialty papers intensified, aided by the reduction in

import duties on the most grades of paper following the 1996 union budget.

This led to increase availability of imports, severely impacting margins.

 ISO 14001 accreditation in December 2002 from Lloyds Register.

Accreditation to quality bodies in UK, and UKAS and RAB. The Gold Award

for safety in 1999 from Royal Society for prevention of Accidence (RoSPA),

UK, Runners-up in 2000 for the prestigious Golden Peacock Environment

Management Award, instituted by the World Environment Foundation.

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e) PACKKAGING AND PRINTING:

 The packaging and printing business leverage its recent investments in

technology up gradation to expand its range of offering to include a wider

variety of contemporary packing formants. This has enabled it to provide

discernibly superior and innovative packaging solutions not only to your

company’s cigarettes business but also to the FMCG and paperboards

business. The enhanced packaging capability provided invaluable support

towards introduction and rollout of several cigarette brands in beveled edge,

round corner and pillow packs while also enabling conservation of foreign

exchange through import substitution.

SIGNIFICANT AWARD:

 The Greentech Environment Award.

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

 British safety council swords of Honour.

 CAPEXIL Export Award.

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

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f) NEW BUSINESS:

 The company’s trademark enjoys enormous goodwill and substantial

consumer franchise. Its goodwill has been built over decades and repents an

enormous accumulated investment. In a highly completive environment, the

cost of building new trademark is prohibitive.

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

standing in its never FMCG business. New product launches, growing

consumer acceptance and increasing market share point to rate progress

towards leadership position

PERFORMANCE OF THE STUDY:

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

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

forever in pursuit of excellence: constant progress and strength and support

for its 3 lakh share holders, 150 lakhs retailers and 5 lakh farmer communities.

It touches the lives of over 1% of India’s rural population, spreads 60 locations

in India and 10 Countries across the world. The ITC group is family which

embraces in its ambit both village retailers and financial analysis, farmers and

chief executives, serving thousands of Indian families in one way or the other,

besides a signifi8cant no. of people overseas.

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 ITS commitment to the shareholders in enormous and is paying

uninterrupted dividend since its incorporation 1910, a period of 88 hears. This

is a unique achievement made by the company even though there are certain

ups and downs in its business at several times.

 The year under the review witnessed strengthening of the company’s

leadership position in the tobacco, hotels & packaging business.

Simultaneously, the company is in the process of restructuring its gestating

specialty paper investments. In tune with its strategy of sharpening focus on

its core business, the company exited the seeds business and substantially

disengaged from the edible oils and financial services section, the alter by

supporting the merger of ITC Classic Finance Limited (classic finance) with

industrial credit and INVESTMENT Corporation India LTD(ICICI).

 This disengagement from classic finance involved a significant financial

outlay of nearly Rs.88 crores this includes Rs. 350 crore towards preference

capital in ICICI for a period of 20 years at a nominal dividend apart from

absorbing a one time restructuring charge of Rs. 53.5 crores in the year under

review. The company supported the financial restructuring of classic finance,

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

failure of large NBFC would adversely impact investor’s confidence in this

sector and has disrupted orderly economic growth. That would neither have

been in the national nor in the interest of the company.

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ISO CERTIFICATION FOR INVESTOR SERVICE:

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

Quality Management System Standards ISO 9001:2000 for investor servicing.

The certification testifies to the exemplary standards that the company’s

Investor Service Center has achieved in complying with statutory and

regulatory requirements and redressing investor grievances.

FOREIGN EXCHANGE EARNINGS:

 ITC continues to view foreign exchange earnings as a key priority.

All business in the ITC portfolio is mandated to engage with over-seas markets

in a bid to test competitiveness and seek growth opportunities. THE ITC

Group’s contributed to foreign exchange earnings over the last decade

amounted to nearly USD 22. Billion, of which agri exports accounted for about

USD 1.6 billion. Earnings from agri exports are an indicator of your company’s

contribution to the rural economy through effectively linking small farmers

with international markets.

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

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

Direct foreign exchange earned by the company amounted to Rs.1269 crs. The

company’s expenditure in foreign currency amounted to Rs. 665 crs,

comprising purchase of raw material, spares and other expenses at Rs. 531 crs,

and import of capital goods at Rs. 124 crores.

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SOCIO – ECONOMIC ENVIRONMENR:

 Advance estimates of the central Statistical Organization (CSO) for

2004-05 indicates a real GDP growth of 6.9% - well above the exceptions at

the commencement of the year. This growth has been achieved despite a less

normal monsoon, decline in the Kharif crop output, unprecedented rise in

global oil prices and fears of de growth in outsourced IT services from India.

The decline in Kharif food grains consequent to the shortfall in southwest

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

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

inflationary impact of rising World crude prices has so far been ameliorated

through a combat ion of agile fiscal policy and prudent monetary management.

Growth in the India IT sector has continued unabated, with software export

earnings touching USD 30 billion.

COMPANY PERFORMANCE:

 ITC posted yet another year of stellar performance, testifying to the

robustness of the corporate strategy of pursuing multiple drives of growth. The

performance is even more heartening when viewed in the context of challenges

environment of the cigarette industry, impact of the absorption of incubation

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

in the hotels and paperboards business.

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 Gross turnover for the 2004-05 grow by 13% to Rs .13350 crs, driven

by good top line growth across all business of your company. Pretax increased

by 15.3% to Rs. 2673 crs, while post –tax profit at Rs, 1873 crs registered a

growth of 15.3

MAIN OBJECTIVES OF THE COMPANY:

The main mission of the organization is “consumer is


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

 Making Indian tobacco Industry internationally competitive.

 Making Indian Products International by bringing pride to the

“MADE IN INDIA “Label.

 Upgrading of technology for optimization of resource utilization.

 Increasing the share of cigarettes in the tobacco industry for

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

generation.

 Enhancing their commitment to the national priority as a leading

foreign exchange earner.

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 Making their products and facilities comparable with

international standards in product quality and corporate safety.

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

opportunity of entering into international business by exporting various agriculture

and miren products the period 1990-1995 and achieved tremendous growth during

this period and also need substantial amount of foreign exchange to our country.

SOCIAL RESPOSIBILITY:

 The company is involved in various social development

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

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

carrying extensive Research and Development activities, and

benefiting the farmers by way of introducing new farm

practices, high yielding varieties and crop consistency

program etc. Apart from this, the company is actively

involved by way sponsorship of various spots and games

events from time to time and involved in activities like

providing drinking water facilities, health camps, adult

education programs etc., in a big way.-

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ITC’S AREA OF OPERATIONS:

ANDHRA PRADESH KARNATAKA

1. Vijayanagaram 1. Mysore

2. Visakapatnam 2. Yelwual

3. Anaparti 3. Hunsur

4. Rajamantri 4. Penapatna

5. Vijayawada 5. Shimago

6. Guntur

7. Cheerala

8. Onogole.

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OPERATING CYCLE OF ILTD:

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

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

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

ITC EXCSTING BUSIESS:

Tobacco:

1. marketing

2. brand building

3. farmer relationships

4. distribution

Hospitality:

1. people management

2. customer service

3. brand buildings

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4. f&b management

Trading:

1. international marketing

2. firex management

3. sourcing

Paper board:

1. institutional marketing

2. manufacturing marketing

Printing&

Packaging

1. merchentising

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2. institutional marketing

HEAD QUARTERS IN CHOWRINGHEE KOLKATTA:

 80% OF SALES FROM CIGRATTES & tobacco.

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

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

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

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

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

 1908 – INDIAN LEAF TOBACO DEVELOPMENT COMPANY LIMITED IN


CORPERATED IN THE BRITISH ISLES.

 1911 – COMMENCED ITS BUYING OF AIR CURVED VARIETY NEAR


MONGHYR ( BIHAR STATE).

 1920 – BEGAN EXPERIMENTS TO CULTIVATES VIRTINIA TOBACCO IN


ANDHARPRADESH (NEAR GUNTUR).

 1926 – REDRYING FACTORY AT CHIRALA.

 1933 – FIRST FCV TOBACCO EXPORTED BY ILTD TO UK


COMMENCECEMENT OF OPERATIONS AT ANAPARTI.

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 1955 – RESEARCH CENTER AT RAJAMUNDRY.

 1962 – INTRODUCTION OF SUN CURED VARIETY AT KURNOOL.

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

 1975 – MERGER OF ILTD WITH ITC.

 1982 – COMMENCEMENT OF GLT PLANT AT ANAPARTI.

 1984 – COMMENCEMENT OF TOBACCO AUCTIONS, GRADING BY


FARMERS.

 1991 – SECOND GIL AT CHIRALA.

 1992 – BIRTH OF IBD.

 1998 – RECORD EXPORTS TURNOVER ABD DIVISIONAL TURNOVER.

 1999 – DEVELOPMENT OF ORIENTAL TOBACCO – TIRUPATI.

 2000 – PROJECT EVERGREEN.

CONTEMPORY PROCESSING FOR A COMPETITIVE EDEGE:

 ILTD ‘S two procession plants at Anaparti and Chirala in A.P compare with the

best in the world and are capable of meeting exacting customers speciation.

 The plants have combined capacity of 300 tones per day.

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 Investments of over $75 million or being made for further enhancing threshing

technology and doubling capacity over the next 4 years.

 Classification and storage system for green leaf are being up graduated to state

of the art.

 Product quality specifications are consistently redefined to meet the

requirements.

 Processing equipment such as threshers and classifiers, redrires, press

complex are continuously upgraded through world renowned suppliers.

 Internationally agreed methods of product quality testing used in all

operations including certified CORESTA screens and standards.

 The Chirala and Anaparti GLT’s were the first of their kind to receive ISO 9002

accreditation.

 The Chirala plant became the first green leaf threshing plant in the world to be

accorded the ISO 14001 environmental certification.

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THE PEOPLE ADVANTAGE:

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

edge. ILTD’S philosophy aims at nurturing and promoting a work culture that fosters

excellence, innovation, competence and contribution. A professional environment

promotes the development of world class talent, skills and expertise. Constant

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

change through customer orientation and responsiveness, sustaining the company’s

leadership by combing the virtues of tradition with modernity, delivering goods &

services effectively, with a personal and humane touch. ILTD provides a quality of life

to its people that sustain their commitment to excellence.

ONE STOP SHOP FOR QUALITY TOBACCO:

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

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

position of strength.

 Advanced technology supported by cost nenefits and technical customer

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

satification and safety are benchmarked to international standards.

 The range of ILTD’s products decades of partnership woth the farmer, its wide

experience in serving export t customers in 37 countries, perennial availability

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of tobaccos with an inventory of 80 million Kg s round the year and a

dedicated export department have made it a one shop for quality Indian

tobaccos. ILTD continues to strengthen its competitive advantage to build on

the company’s leadership position in next millennium.

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

the best in the world and are capable of metting extracting customer

spedifications. The plants have a combined capacity of 300 tones per day.

Investments of over $75 million are being made for further enhancing

threshing technology and doubling capacity over the next 4 years. State of the

equipments, modern quality control labs, sophisticated electronic tools and

instrumentation with feedback loops ensure a consistent end product.

Processing equipment such as threshers and classifiers, redrires are

continuously upgraded through world renounced suppliers.

A RESPONSIBLE CORPORATIVE CITIZEN:

ILTD participates with the local administration in its areas of operations in

improving civic amenties, infrastructure, social forestry and sanitation resulting ina

marked development of facilites both for resident and vision.

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DATA ANALYSIS AND INTERPRETATION

4.1.What is Training and Development to you?

NO. Of
S.No. Options Percentage
Respondents
1 To acquire knowledge& 15 30%

skills.
2 To learn Behavior in 15 30%

organization
3 To learn abilities attitudes of 10 20%

a particular job
4 All of the above 10 20%
Total 50 100%

Interpretation: -

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

training and development to them is to learn behavior in organization, acquire

knowledge and skills, and 20% of employees felt that to learn abilities. The

same data is in corporate in the following graph.

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4.1

What is Training& Development to you?

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4.2.Training is need for the Development of you?

NO. Of
S.No. Options Percentage
Respondents
1 Current project 25 50%
2 Future Project 15 30%
3 Personnel 10 20%
4 All of the above 0 0%
Total 50 100%

Interpretation:

After observing the above table we can understand that most of the

employees felt that the training is needed for the development of their current

project improvement, their percentage is 50%, 30% of the other employees

said that training is need for the development of future project, remaining

employees are said that training is need for development of Personnel growth.

No single employee said these all three uses they get from the training.

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4.2

Training is need for the Development of you?

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

program?

NO. Of
S.No. Options Percentage
Respondents
1 Voluntary 20 40%
2 Mandatory 18 36%
3 Through Management 12 24%
Total 50 100%

Interpretation:

After observing the above table we can understand that most of

the employees are feel that the Factors to participate into training was

taken as voluntary the 40% of the employees are feel like this, and 36%

of the people are it gives Mandatory and remaining employees are feel it

comes through management.

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4.3

What are the factors that influence you to participate in training

program?

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

NO. Of
S.No. Options Percentage
Respondents
1 Less than 5 years 6 12%
2 5 to 10 years 20 40%

3 10-15 years 23 46%


4 More than 15 years 1 2%
Total 50 100%

Interpretation: -

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

had more than 15 years of service,46% of employess had 10-15 years of

service(me).

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4.4

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How many years of service you have in TOBACCO BOARD?

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

BOARD?

NO. Of
S.No. Options Percentage
Respondents
1 Fully satisfied 20 40%
2 Satisfied 11 22%
3 Neutral 9 18%
4 Dissatisfied 10 20%
Total 50 100%

Interpretation:

From the above table it is observed that out of 50 employees 40 % of

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

employees are satisfied with the training programs provided at TOBACCO

BOARD, and remaining 20% are dissatisfied with the training programs.

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4.5

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Are you satisfied with the training programs Given in

TOBACCO BOARD?

4.6. How frequent is training given in your organization?

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NO. Of
S.No. Options Percentage
Respondents
1 Quarterly 5 10%
2 Half yearly 0 0%
3 Annually 10 20%
4 Specify to the Requirements 35 70%
Total 50 100%

Interpretation:

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

given when ever thetraining requirements arises in the organization . so that it

helps than about to achive their organizational objectives effectively.

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4.6

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How frequent is Training given in your organization?

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

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NO. Of
S.No. Options Percentage
Respondents
1 Increased the productivity 23 46%
2 Enhanced the skill 10 20%
3 Made job easier 7 14%
4 All the above 10 20%
Total 50 100%

Interpretation: -

46% of the employees said that training is helpful to increase the

productivity, 20% of employees felt that to enhance the skills.

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4.7

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How do you think that training is helpful to you?

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

NO. Of
S.No. Options Percentage
Respondents

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1 Yes 12 24%
2 NO 38 76%
Total 50 100%

Interpretation: -

76% employees felt that they are satisfied with the present training

programs, which is relevant to this job. So they felt that they don’t require

future liability.

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4.8

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Do you realize that further training is necessary for the present job?

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

through?

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NO. Of
S.No. Options Percentage
Respondents
1 Feedback from the 27 54%

employees
2 Feedback from the superiors 10 20%
3 Management Requirement 4 8%
4 According to the Company 9 18%

Strategy
Total 50 100%

Interpretation:

54%of the employees are said that training programs will be

identified through Feedback from the employees, 20% of the employees

are said that training programs will be identified through Feedback from

the superiors, 4% of the employees are said that training programs will

be identified through Management Requirement, 18% of the employees

are said that training programs will be identified through According to

the Company Strategy

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4.9

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The need for the development for training programs will be

identified through?

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

training period at TOBACCO BOARD?

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NO. Of
S.No. Options Percentage
Respondents
1 Excellent 11 22%
2 Very good 7 14%
3 Satisfactory 12 24%
4 Poor 20 40%
Total 50 100%

Interpretation: -

From the above table it is very clear that out of 50 employees, 40% of

employees felt that the training provided by Corporate Learning Centre

is poor 24 % of employees said that they have taken Satisfactory help

from CLC (Corporate Learning Centre ) in the training period at

TOBACCO BOARD, 22% of employees said that they have taken

Excellent help from CLC in the training period at TOBACCO

BOARD,14% of employees said that they have taken Very Good help

from CLC in the training period at TOBACCO BOARD, 40% of

employees said that they have taken poor help from CLC in the training

period at TOBACCO BOARD

4.10

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What type of help you got from the CLC (Corporate

Learning Centre) in the training period at TOBACCO BOARD?

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FINDINGS OF THE STUDY

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

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

3. It has been observed that employee’s feedback will be collected immediately up


to maximum extent after the training program. The employees are enthusiastic
about the training programs and they also felt that the training program is
interactive.

4. Employees feel less enthusiastic before training. On seeing environment, they


are keen on attending off-the-job training in a new environment/ setting.

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


development period.

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

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

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

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CONCLUSION

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

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

3. Most of the employees felt that regularity of training programmers must be


there and selection of personnel for training must be systematic.

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

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

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

7. Mostly on-line methods are followed.

8. Most of the employees are satisfied with trainees.

9. Trainees through questionnaires evaluate the training program.

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

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

12. Feedback is collected after the training program.

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SUGGESTIONS

1. Each employee should attend a minimum of three of maximum or five months


of training program conducted by the organization per year.

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


implemented.

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

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

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

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

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


increase their morale.

QUESTIONNAIRE

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

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

required data for successful completion of my study.

Please spend your valuable time to me.

Thanking you sir.

Yours sincerely,
M.Vijay Gandhi

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QUESTIONNAIRE
1. What is Training& Development to you?

A) To learn knowledge& skills.

B) To learn Behavior in organization

C) To learn abilities attitudes of a particular job

D) All of the above

2 Training is need for the Development of you?

A) Current project B) Future Project

C) Both D) None of these

3 According to you which type of training is beneficial?

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

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

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

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

C) 10-15 years D) more than 15 years

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5 Are you satisfied with the training praogrammes given by the TOBACCO

BOARD management?

A)Fully satisfied B)satisfied

C)Neutral D) dissatisfied

6 How frequent is Training given in your organization?

A) Quarterly B) Half yearly

C) Annually D) Specify to the Requirements.

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

A) Increased the productivity B) Enhanced the skill

C) Made job easier D) All of the above

8 Do you realize that further training is necessary for the present job?

A) Yes B) No

C) If yes, kindly specify

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9 The need for the development for training programs will be identified

through?

A) Feedback from the employees

B) Feedback from the superiors

C) Management Requirement

D) According to the Company Strategy.

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

the training period at TOBACCO BOARD?

A) Excellent B) Very good

C) Satisfactory D) poor

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BIBLIOGRAPHY

1. PERSONNEL MANAGEMENT EDWIN, B. FLIPPO

2. PERSONNEL MANAGEMENT C.B.MEMORIA

3. HUMAN RESOURCE MANAGEMENT K.ASWATHAPPA

4. ORGANISATIONL BEHAVIOR STEPHEN.P. ROBIN

5. HUMAN RESOURCE MANAGEMENT KEITH DAVIS

WEBSITE: www.itcportal.com

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