EXECUTIVE SUMMARY

Never before has the rapid increase in new knowledge and technology and in the base of
change and itself demanded a learning response as great as what is now required to remain
competitive. Today individuals and organizations must become continuous learners to
survive and hence it is not surprising to find that most successful organisations operate in a
continuous learning mode.

The challenge of globalization, technological innovation increasing competition and growth

through expansion, diversification and acquisition has had a wide-ranging and far reaching
impact on HRD. There is a need for a continuous process that aims at providing fresh
knowledge and skill inputs to the employees so as to ensure the development of their
competencies, dynamism, motivation and effectiveness in a systematic and planned way,
thereby improving the productivity and overall organizational effectiveness. As a result,
training and development activities have acquired great significance and are now firmly
centre-stage in most of the organizations. Hence it can be said that with the advent of free
market economy rapid change in the environment, training and development activities have
assumed an importance never before witnessed in Indian corporate history.

Training is the process of assisting a person in enhancing his efficiency and effectiveness at
work by improving and updating his professional knowledge developing his personal skills
relevant to his work and cultivating in him appropriate behavior and attitude towards his
work and people he is working with. Development takes place as a result of training and
essentially implies growth plus change. Thus, training and development go hand in hand. My
endeavor has been to gain an in-depth insight into the process of discovering, harnessing and
developing of the human capital to the benefit of both the individual and the organization into
days highly dynamic and competitive business world through a comprehensive study and
analysis of the latest training and development techniques. In terms of training design the
trainer needs to be alert to the demands made by:

• learning

• behaviour

• results required

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For best effects it is important to consider what a particular piece of training will deliver in
terms of new knowledge, skills, ideas and abilities and also what the individual will do with
that learning in their job. The trainer will need to develop a design, which includes or
specifies how the learner is to transfer what they have learned to their workplace and
integrate it into day- to-day standards and behaviours. The final issue to be considered is how
the required results can be measured and be seen to have resulted from the training provided.
Employees sent to various programs need to be evaluated so as to ascertain the effectiveness
of the program. Many people agree to the basic fact that no much of a systematic effort
towards evaluation exists in the organization. Goods evaluation is based on careful
specification of training objectives and performance measures that will be used to determine
if the training objectives have been successfully achieved.

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INTRODUCTION

Every organization needs well-trained and experienced people to perform the activities that
must be done. A job in today's dynamic organizations have increasingly become complex, the
importance of employee education and training has increased. When jobs were simple, easy
to learn and influenced only a small degree of technological changes, there was little need for
the employees to upgrade their skills. But the situation has drastically changed today. Instead,
rapid job responsibilities are occurring, requiring employee skills to be transferred and tuned.
Training is a learning experience in that; it seeks a relatively permanent change in an
individual that will improve the ability to perform on the job. Training can involve changing
of skills, knowledge, attitudes and behaviour. Training is a prerequisite to improved
performance as preparing human resources for new jobs, transfers, promotions or change
over to modern technology as equipment. In addition to training of new entrants, manpower
at all levels require refreshers' training from time to time to avoid personal obsolescence and
improving competency to hold higher positions. Filippo Lucidly discussed several advantages
that stem from training. This includes increased productivity, heightened morale, reduced
supervision, reduced accidents and increased organizational stability and flexibility. With the
increase in skills, there results an increase in both quality and quantity of performance. The
individuals who are equipped with the requisite training accomplish the basic human needs
such as security and ego satisfaction. Trained employees can perform their work effectively
even with little supervision. It has been recognized that more errors are caused because of
inadequate preparedness on the working conditions. Adequate training on job skills and
positive attitude is likely to minimize rates of errors considerably. The ability of the
organization to maintain its effectiveness despite the loss of key persons can be accomplished
by keeping a reservoir of trained replacement.

Training as part of the business A useful approach for understanding the training process is to
consider it as a system whose boundaries interact with the rest of the business. Training needs
are identified, training is provided to meet the needs, the output is compared to the
requirements and any necessary changes are made to the system to obtain the desired output.
However, while this approach helps to understand how training processes operate, it also puts
training at the center of the universe. The effect of this training-centred approach is that the
business will see training either as a panacea for all problems or as having no direct relevance
to the business. A better approach is to extend the boundaries of the system so training is an
integral part of the business. Banks, which have made this degree of progress, have taken the

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first step towards being a 'learning organization'. Organizational flexibility can be achieved
by maintaining highly trained people with multiple skills to permit their smooth transfer to
jobs where the demand has multiplied. Indeed, a well-trained workforce is the greatest asset
to any organization. Indian service industry is presently towards a rapid development track.
Improved technology and techniques are being obtained from the developed countries. New
quality systems are being accepted and implemented in the form of ISO 9000 and QS 9000
Certification. In the light of the transformation to be achieved, the most important area for
concentration in Indian organization particularly the banking industry would be developing
the work culture conducive for performance excellence. This can be achieved by giving
enormous thrust to human resource management activity in the organizations, particularly
giving training to employees. Training programs supported to improve job performance,
minimize conflicts, prepare individuals for promotion, and to accept organizational changes
facilitate understanding of organizational goals and attain allied behavioural activities.

COMPANY PROFILE

The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994.
The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. HDFC is India's premier housing finance company and
enjoys an impeccable track record in India as well as in international markets. Since its
inception in 1977, the Corporation has maintained a consistent and healthy growth in its
operations to remain the market leader in mortgages. Its outstanding loan portfolio covers
well over a million dwelling units. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment. HDFC Bank began operations in
1995 with a simple mission: to be a "World- class Indian Bank". We realised that only a
single-minded focus on product quality and service excellence would help us get there.
Today, we are proud to say that we are well on our way towards that goal.

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Company Vision

To build a World-Class Indian Bank.

It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.

• 2007

The Asian Banker Excellence in Retail Financial Services Awards Best Retail Bank in India

Asian Banker Our Managing Director Aditya Puri wins the Leadership Achievement Award
for India

• 2006

Business Today ,Best Bank in India, Forbes Magazine, One of Asia Pacific's Best 50
companies, Businessworld, Best listed Bank of India, The Asset Magazine's Triple A Country
Awards, Best Domestic Bank, Asiamoney Awards, Best Local Cash Management Bank in
Large and Medium segments. Euromoney Awards "Best Bank" in India.

• 2005

Asiamoney Awards Best Domestic Commercial Bank Asiamoney Awards Best Cash
Management Bank - India . The Asian Banker Excellence Retail Banking Risk Management
Award in India. Hong Kong-based Finance Asia magazine Best Bank India Economic Times
Awards "Company of the Year" Award for Corporate Excellence. The Asset Triple A
Country Awards Best Domestic Bank in India Region - 2005 The Business Today-KPMG
Survey Best Local Cash Management Bank in India US$11-100m - 2005 The Business
Today-KPMG Survey "Best Bank in India" for the third consecutive year in 2005. Economic
Times - Avaya Global Connect Customer Responsiveness Awards "Most Customer
Responsive Company - Banking and Financial Services - 2005

• 2004

Asiamoney Awards Best Local Cash Management Bank in India US$11-100m Asiamoney
Awards Best Local Cash Management Bank in India >US$501m Asiamoney Awards Best
Local Cash Management Bank in India 1989-2004 (poll of polls) Asiamoney Awards Best
Overall Domestic Trade Finance Services in India - 2004 Asiamoney Awards Most Improved

5|Page
company for Best Management Practices in India - 2004 Business World One of India's Most
Respected Companies - 2004Forbes Global Best Under a Billion, 100 Best Smaller Size
Enterprises in Asia/Pacific and Europe - 2004 Asian Banker Awards Operational Excellence
in Retail Financial Services - 2004 The Asset Triple A Country Awards Best Domestic Bank
in India - 2004

• 2003

Forbes Global Best Under a Billion, 200 Best Small Companies - 2003 The Asset Triple A
Country Awards Best Domestic Bank in India -2003 BusinessWorld - The Business World
Most Respected Company Awards One of India's Most Respected Companies The Asset
magazine Best Cash Management Bank The Asset magazine Best Trade Finance Bank FE-
Ernst & Young Best Banks Survey Best New Private Sector Bank - 2003 Outlook Money
Best Bank in the Private Sector 2003 � Business Today Best Bank in India -2003
NASSCOM & economictimes.com - IT Users Awards

Best IT User in Banking -2003 There have been some other proud moments as well: •
London-based Euromoney magazine gave us the award for "Best Bank - India" in 1999,
"Best Domestic Bank" in India in 2000, and "Best Bank in India" in 2001 and 2002 •
Asiamoney magazine has named us "Best Commercial Bank in India 2002". • For our use of
information technology we have been recognized as a "Computerworld Honors Laureate" and
awarded the 21st Century Achievement Award in 2002 for Finance, Insurance & Real Estate
category by Computerworld, Inc., USA.

• Our technology initiative has been included as a case study in their online global archives
.The Economic Times has conferred on us The Economic Times Awards for Corporate
Excellence as the Emerging Company of the Year 2000-01.

• Leading Indian business magazine Business India named us "India's Best Bank" in 2000.

• In the year 2000, leading financial magazine Forbes Global named us in its list of "The 300
Best Small Companies" in the world and as one of the "20 for 2001" best small companies in
the world. We are aware that all these awards are mere milestones in the continuing, never-
ending journey of providing excellent service to our customers. We are confident, however,
that with your feedback and support, we will be able to maintain and improve our services.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 684 branches spread over 316 cities across India. All branches are linked on an online

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real-time basis. Customers in over 120 locations are also serviced through Telephone
Banking. The Bank's expansion plans take into account the need to have a presence in all
major

industrial and commercial centres where its corporate customers are located as well as the
need to build a strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
centres where the NSE/BSE have a strong and active member base. The Bank also has a
network of about over 1695 networked ATMs across these cities. Moreover, HDFC Bank's
ATM network can be accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. Retail
Banking Propelled by higher fee-based income and retail banking, HDFC Bank, country’s
third largest bank in market capitalisation, posted a net profit of Rs 321.2 crore for the first
quarter ended June 30, 2007. The rise in profit was 34.2% above the June quarter of the
previous year. With a spread of 4.1%, almost 55% of the profit was contributed by the retail
banking segment, said a senior executive of the bank. The bank’s Capital Adequacy Ratio
(CAR) was at 13.1% as of June 30, 2007, of which tier I CAR was 9.2%. The bank is raising
around Rs 3,000 crore of capital shortly through a combination of overseas and domestic
borrowing programme. Though there has been further slippage of stressed assets in absolute
amount, the net non-performing assets of the bank for the reporting period is pegged at 0.4%
of its total advances. Other income (non-interest revenue), registered a strong growth of
77.3% from Rs 290.9 crore for the first quarter ended June 30, 2006 to Rs 515.8 crore in the
first quarter of the current year. Other income (non-interest revenue) consisted principally of
fees and commissions of Rs 372.2 crore, foreign exchange and derivatives revenues of Rs
146.5 crore, and loss on investments of Rs 4.1 crore, as against Rs 290.6 crore, Rs 55.8 crore
and Rs 62.29 (loss) crore respectively, for the quarter ended June 30, 2006.

10

The bank’s total income is estimated at Rs 2,641.7 crore for the quarter ended June 30, 2007,
as against Rs 1,795.2 crore of the corresponding previous year quarter. The bank’s provisions
and contingencies for the quarter were Rs 307.1 crore, comprising specific provisions for
non-performing assets and general provision for standard assets of Rs 299.7 crore as against
Rs 185.4 crore for the quarter ended June 30, 2006. Total balance sheet size as of June 30,

7|Page
2007, was Rs 105,695 crore, an increase of 32.6% over June 30, 2006. Bank’s total deposits
were Rs 81,604 crore, 34.6% over Rs 60,630 crore of the previous year quarter. Savings Net
advances at Rs 53,839 crores as of June 30, 2007 were up by 32.7% over June 30, 2006.
Retail loans constituted 57% of the net advances as of June 30, 2007. The bank’s total
customer assets (including advances, corporate debentures, investments in securitised
increased to Rs 45,764 crore in June 30. DIFFERENT DEPARTMENTS Middle market
Global Banking Mutual Funds Payments Cash Management ITSM Customer
service Trade Service Home Loan Personnel Loan HR Corporate Sales
Locker Credit cards

11

INDUSTRY PROFILE a) Origin and development of the industry Banking Industry in India
has always revolved around the traditional function of deposits and credit. Their role had
been defined as to assist the overall economic growth with majority of share being controlled
by the Government of India in most of the banks. But with the process of liberalization, and
the technological revolution the banking industry has also undergone tremendous change in
the last 5 years. The market, which was largely controlled by the public sector banks, has
now been facing stiff competition not only from foreign players but also from the new
generation private sector banks. The rules of the game have been changing with the RBI
introducing new norms to make banks more accountable and to adopt the practices followed
worldwide. Most of the banks have now been trying to function on the concept of a Universal
Bank. Apart from the traditional functions of a commercial bank, they are taking steps to
build themselves into a one stop financial centre wherein all the financial products would be
available. Banks have started catering to the retail segment to improve their deposit portfolio.
In order to have a maximum share in this segment, most of the banks have been introducing
new products. The delivery channels have also been shifted from branches to ATMs, phone
banking, net banking etc. Banks traditionally involved in working capital financing have
started offering consumer loans and housing loans. Some of the banks have started offering
travel loans as well. Retail financing is the other area where the banks have started to
concentrate. The loan formalities too have been relaxed to a great extent and sanctioning time
has been speeded up. History of Banking Industry Banks are the most prominent and very
important part of the financial economy of India. The performance of banks is completely
linked to the growth of the economy while the nature and quantum of growth is in turn

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linked to the availability of bank credit. banks have been used by successive governments to
achieve their social, political and economic goals. the structure of the government banking
system has undergone numerous change since independence. two phases of nationalization,
introduction of regional rural banks in 1975 (to focus on rural spread on banking) and
permission to new private banks to set up operations since 1993-94 are some of the major
changes undergone. Banking Industry in India has always revolved around the traditional
function of deposits and credit. Their role had been defined as to assist the overall economic
growth with majority of share being controlled by the Government of India in most of the
banks. But with the process of liberalization, and the technological revolution the banking
industry has also undergone tremendous change in the last 5 years. The market, which was
largely controlled by the public sector banks, has now been facing stiff competition not only
from foreign players but also from the new generation private sector banks. The rules of the
game have been changing with the RBI introducing new norms to make banks more
accountable and to adopt the practices followed worldwide. Most of the banks have now been
trying to function on the concept of a Universal Bank. Apart from the traditional functions of
a commercial bank, they are taking steps to build themselves into a one stop financial centre
wherein all the financial products would be available. Banks have started catering to the retail
segment to improve their deposit portfolio. In order to have a maximum share in this
segment, most of the banks have been introducing new products. The delivery channels have
also been shifted from branches to ATMs, phone banking, net banking etc. Technology has
become an important medium of not only attracting new customers but also in retaining them.
The new generation private sector banks have made a strong presence in the most lucrative
business areas in the country because of technology upgradation. While, their operating
expenses have been falling as compared to the PSU banks, their efficiency

13

ratios (employee’s productivity and profitability ratios) have also improved significantly. b)
Growth and present status of the industry. KEY INDUSTRY STATISTICS OF
SCHEDULED COMMERCIAL BANKS (Rs bn)

2006 2007 2008 2009 Total deposits 7140 8132 8729 9928 Demand 1174 1273 1266 1347
Time 5966 6859 7463 7498 Total bank credit 3688 4358 4667 4779 Food 168 256 320 373
non-food 3520 4102 4347 4399 Investments 2545 3088 3332 3347 govt. sec 2232 2784 3023

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3038 other approved sec 313 304 309 314 Cash in hand 43 53 53 57 Balance with RBI 635
574 631 656 Cash-Deposit ratio 9.50% 7.70% 7.80% 7.80% Investment-Deposit ratio
35.70% 38% 38.20% 38.20% Credit-Deposit ratio 51.70% 53.60% 53.50% 53.50%

Banks traditionally involved in working capital financing have started offering consumer
loans and housing loans. Some of the banks have started offering travel loans as well. Retail
financing is the other area where the banks have started to concentrate. The loan formalities
too have been relaxed to a great extent and sanctioning time has been speeded up.

14

Mergers and Acquisitions have also started playing their role in the banking industry where
lots of players are trying to consolidate their position. The recent merger of HDFC Bank with
Times Bank and ICICI Bank with Bank of Madura are important steps in this direction. In
recent times, most of the new private sector banks have shown interest in inducting a foreign
partner in their operations. Most of the banks are also planning to enter the insurance business
and are in the process of identifying their strategic partners. Since most of the banks already
have an extensive distribution network, this new business should result in substantial
revenues. But with most of the top league players planning to enter this business, the more
efficient and pro active players would be able to take a lead. c) Future of the industry. The
Indian Banking industry is largely dominated by the public sector banks. These banks till the
early 90s were involved in the traditional banking business of deposits and credit lending.
They performed a supportive role in the overall growth of the economy. While most of these
banks used to focus on the growth of balance sheet, profitability was not a significant factor
in the competition. In most of the banks, the government has a holding of 100% whereas in
the few banks, the stake has fallen because of a public issue in the post liberalization period.
The government is proposing to bring out a bill wherein its share in all these banks would
stand reduced to 33% from the current levels.

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LITERATURE REVIEW Organisations are made up of people and function through people.
Without people organisations cannot exist. The resources of men, money, materials and
machinery are collected, coordinated and utilized through people. These resources by
themselves cannot fulfill the objectives of an organisation. They need to be united into a
team. It is through the combined efforts of people that material and monetary resources are

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effectively utilized for the attainment of common objectives. Without united human efforts,
no organisation can achieve its goals. All the activities of an organisation are initiated and
completed by the persons who make up the organisation. Therefore, people are the most
significant resource of any organisation. This resource is called human resource and it is the
most important factor of production. According to L.F. Urwick, "business houses are made or
broken in the long run not by markets or capital, patents or equipment but by men." Of all the
resources manpower is the only resource, which does not depreciate, with the passage of
time. From the national viewpoint, human resources may be defined as "the knowledge,
skills, creative abilities, talents and aptitudes obtained in the population." From the viewpoint
of an organisation, human resources represent the people at work. They are the sum-total of
the inherent abilities, acquired knowledge and skills as exemplified in the talents and
aptitudes of its employees. According to Jucius, human resources or human factors refer to "a
whole consisting of inter-related, interdependent and interacting physiological, psychological,
sociological and ethical components." Thus, human resources represent the quantitative and
qualitative measurement of the workforce required in an organisation. Human resources are
characterized by the following features: (i) Human resources of an organisation are the
product of their biological inheritance and interactions with the environment. Family
relationships, religious influences, caste or racial background,

16

educational accomplishments and organisational climate influence the attitudes, behaviour

and performance of human beings. (ii) Human resources are heterogeneous. They consist of a
large number of individuals each having a unique personality, different needs, attitudes and
values. Each has his own physical and psychological traits. Most of the problems of an
organisation are people-related problems. These problems arise from the mistaken belief that
people are alike and they can be treated identically. In order to make effective use of its
human resources, an organisation must recognise and pay attention to differences between
individuals so that each person can maximize his/her potential. (iii) Human resources are
dynamic and behave differently. They react to the same situation in quite different ways.
Even the same individual may behave differently at two different points of time. It is,
therefore, very difficult to predict human behaviour. (iv) Human resources are the most
important element in an organisation. The effective utilization of all other resources depends
upon the quality of human resources. (v) Human resources have the greatest potential to
develop and grow provided the right climate is provided to them. An organisation can survive

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and grow if it has the right people at the right time working at right jobs. (vi) The term human
resources is wider than the term personnel. Human resources include all the dynamic
components of all the people at all levels in the organisation whereas personnel means the
employees working in the organisation. Training and Development The effective functioning
of any organization requires that employees learn to perform their jobs at a satisfactory level
of proficiency. An effective organization wishes to have amongst its ranks individuals who
are qualified

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to accept increasing responsibilities. So much so that organizations need to provide

opportunities for the continuous development of employees not only in their present jobs, but
also to develop their capabilities for other jobs for which they might later be considered.
Training refers to the teaching/learning activities carried on for the primary purpose of
helping members of an organization to acquire and apply the knowledge, skills, abilities and
attitudes needed by that organization. Broadly speaking, training is the act of increasing the
knowledge and skill of an employee for doing a particular job. Though it is true that
unplanned learning through job experience helps development, the experience of most
organizations is that it is advantageous to plan systematic training programmes of various
types as a regular part of an adequate personnel development programme. Such programmes
are definite assets in helping managers to learn correct job methods, to achieve a satisfactory
level of job performance, and to acquire capabilities that would be valuable in possible future
jobs. Planning and Training Activities The following steps must form the basis of any
training activity: 1. Determine the training needs and objectives. 2. Translate them into
programmes that meet the needs of the selected trainees. 3. Evaluate the results. Training
Inputs There are three basic types of inputs: skills, attitudes, and knowledge. The primary
purpose of training is to establish a sound relationship between the worker and his job- the
optimum man-task relationship. Such a relationship is at its best when the worker’s attitude to
the job is right, when the worker’s knowledge of the job is adequate, and he has developed
the necessary skills.

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Training activities in an industrial organization are aimed at making desired modifications in

skills, attitudes and knowledge of employees so that they perform their jobs most efficiently
and effectively. Skills Training activities nowadays encompass activities ranging from the

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acquisitions of a simple motor skill to a complex administrative one. Training an employee
for a particular skill is undertaken to enable him to be more effective on the job. For instance,
new workers can be trained to achieve levels of output attained by experienced older workers.
Similarly existing workers whose levels of output are below par can be retrained. Attitude
Through orientation (induction) programmes, organization develops attitudes in new
employees, which are favorable toward the achievement of organizational goals. Training
programmes in industry are aimed at moulding employee attitudes to achieve support for
company activities, and to obtain better cooperation and greater loyalty. Knowledge Training
aimed at imparting knowledge to employees in the organizations provides for understanding
of all the problems of modern industry. This knowledge for a worker is specific to his job,
and related broadly to plant, machinery, material product, and quality and standard of
product. Knowledge for managerial personnel may be related to complexity of problems in
organizing, planning, staffing, directing and controlling. In general, training initiated for
imparting knowledge to employees should consider three aspects: 1. Knowledge in general
about factory and work environment- job context 2. Specific knowledge related to job- job
content 3. Knowledge related to quality and standards of product or quality of

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work. Areas of Training Areas of training can be classified into the following categories: 1.
Training in company policies and procedures (induction training) 2. Training in particular
skills. 3. Training in human relations. 4. Managerial and supervisory training. 5. Apprentice
training. Training in company policies and procedures This is a part of the induction of a new
employee. The objective is to orient new employees with the set of rules, procedures,
management, organization structure, environment and products, which the firm has and/or
deals with. Orientation is a continuous process aimed at the adjustment of all employees to
new and changing situations. It aims to impart the facts of company rules and policy, to
create attitudes of confidence in the company, prides in the products, respect for company
personnel, and to provide information about needs and skills, development, quality of
production and work organization. It also enables employees to get the first impression of the
“culture” of the firm and the kind of people he will have to deal with. At no time does it
allow for questioning or change of system. It, therefore, in no way contributes to the
organization’s growth, nor does it enhance an employee’s ability to contribute to the
organization’s growth. Induction programs are also used for in-company promotes, who have
to be oriented to the demands of their requirements. Induction programs are based on the

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philosophy that the process of initial adjustment and entry to the organization is a difficult
process. Unless a conducive and supportive atmosphere facilitates it, it would leave the new
entrant with several uncertainties in his mind and make his assimilation in

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organizational life more complex and difficult. Many organizations are conscious of this and
devote considerable effort to make the initial entry phase a pleasant and cordial one. Training
In Particular Skills Training of employees for particular skills is undertaken to enable the
employee to be more effective on the job. It is a here-and-now proposition, somewhat like
induction training, which does not have a very significant development aspect to it. Its aim is
narrow-to guarantee a certain contribution to the job, for instance sales training and machine
skills. Human Relation Training This is a broad category embracing many different aspects.
Self-learning and inter-personnel competence can be included in this category-all concerned
with generally the same theme. It stresses a concern for individual relationships, for feeling
and treating people as “human beings”, rather than as machines. Not only is this concern and
awareness in one’s attitudes and behavior conducive to better work-place relations, but also
to enhanced productivity. This category of training is oriented towards the development of
the individual and consequently the organization’s efficiency in terms of better teamwork.
Problems Solving Training Many in-company programmes also revolve around
organizational units, like divisions of branches, which generally handle a product line. The
practice is to hold together all managerial personnel in a particular division/ branch from the
both headquarter and the field of offices and discuss common problems and solutions across
the table. This not only helps solve problems, but also serves as a forum for the exchange of
ideas and information, which could be utilized in other situations. Managerial and
Supervisory Training The managerial job combines both techniques and conceptual
knowledge. If it is that of a specialist, it would emphasize some techniques and knowledge

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like operations, research, finance, production, and personnel management. If on the other
hand it is a general management job, then the emphasis would be on the principles of
scientific management: organizing, planning, staffing, directing and controlling. Apprentice
Training The apprentice act 1961 was based on the philosophy of providing some technical
training for unskilled people in order that their employment opportunity is enhanced, or
alternatively to help them be self-employed. Industrial organizations in specified industries

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are required to train apprentice in proportion to their workforce in designated trades. The
duration of training is one to four years. Learning and Training Irrespective of the type or
method of training, trainer has to keep in mind some of the principles of learning or
motivation, which would enhance internalization of what is taught. Motivation A trainee
needs to have a desire to learn and benefit from the programme. If he is not interested, or is
de-motivated, then the learning outcome is going to be insignificant and the company will
have spent its money badly. On the other hand, being too intense about learning and outcome
may result in setting over-ambitious goals for the individual. Reinforcement Following on the
concept of motivation is that of reinforcement. For learning to take place and be internalized
to the desired extent, a trainee is rewarded or given some encouragement. This reinforcement,
or the acknowledgement that what has been acquired is desirable, can be either an extrinsic or
intrinsic reward- external praise or some tangible reward, or the individual’s feeling of a
sense of progress. Current stress is on positive support and helpful behavior, even when
mistakes are made.

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Feedback During the training process, it is useful for the trainee to be told how he is
progressing. The knowledge of results is, several researchers have confirmed, an effective
motivator. Constant and periodic feedback has positive effects on the trainee’s learning.
Unless the trainee knows how close his performance comes to the desired standard, he will
not have an opportunity to improve. Feedback, therefore, provides a basis for correcting
oneself. Secondly, feedback helps to sustain the trainee’s interest in the task, or in the
learning that is taking place, by bringing greater involvement with the learning process. If
feedback is to be meaningful, it should follow a learning segment as quickly as possible.
Transfer of Training The maximum use of training can be made if the trainee is able to
transfer his learning to his actual work role. This is possible if elements are incorporated in
the training situation from the job role, either existing or proposed. The more similar the
learning situation is to the job situation, the higher the degree of transfer the trainee can
expect, and hence the greater the relevance of the training programme. Repetition Repetition
etches a pattern into our memory, e.g., when one studies for an examination, it is necessary to
repeatedly go over ideas so that they can be recalled later. Relevance Relevance relates to the
meaningful use of material, which aids learning, e.g., trainers usually explain in the overall
purpose of a job to trainees before assigning them a particular task. Training Policy A

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company's training policy represents the commitment of its top management to training, and
is expressed in the rules and procedures that

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govern or influence the standard and scope of training the organization. Training policies are
necessary for the following reasons. 1. To highlight the firm's approach to the training
function, provide guidance for design and execution, and to provide information regarding
programmes to all employees. 2. Formulation of policy helps in identification of priority
areas in training, and since resources are scarce, they are prioritized according to felt needs.
3. A training policy document helps to communicate the firm's intent regarding an employee's
career development, and also gives the employee the opportunity to better his prospects
through training. Positive Outcomes of Training The continued effectiveness and efficiency
of an organization is to some extent dependent on the ability of its employees to produce at
high levels of efficiency, and keep abreast with their changing job-role demands. Training
will provide for an output in this direction. The several positive benefits of training are that: -
Training helps employees to learn their jobs and attain desired levels of performance speedily
thus cutting costs and contributing to better utilization of machines and materials, for
example in workers' categories. - Training helps to reduce the cost of raw materials and
products-reducing losses due to waste, poor quality products and damage to machinery-
which would result if an untrained employee were to learn on his own. - Employee
motivation is enhanced when employees known that the firm would provide them training
opportunities to increase their skills and knowledge, thus enabling them to develop and
qualify for higher posts. Such practices create favorable attitudes towards the organization,
which could result in better adjustment and commitment to one's work and the organization.
Thus cooperation could help reduce employee turnover, absenteeism, accidents,
dissatisfactions and grievances.

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- Finally, training aids in the development of individual skills, better methods, new
equipment, and sometimes new work place relationships. Such a process would also facilitate
technological change by updating the versatility of employees. Training Methods Training
methods are a means of attaining the desired objective in a learning situation. Given
background work such as identification of training needs, a programme design and its
duration (based on these needs), it then becomes pertinent to analyze and select the best

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method or combination of methods, given the several constraints, to attain the programme
objective. The choice of a method several constraints, to attain the programme objective. The
choice of a method would depend on a wide variety of factors, such as competence of
instructors, relevance to the participants, the programme design, i.e., is a particular method
the best vehicle to put across the contents, and finally its cost implications. Numerous
training methodologies and techniques have been developed over the years to meet certain
specific needs. Each method has structured procedures for conduct that offer certain
advantages in developing certain limited facets of a trainee, and suffer from some limitations.
In using a particular method, one should know its strengths and weaknesses, given the
situation, and analyze its relevance, its purpose, and if it is useful, how to get the most out of
it. This would provide the rationale of the various training methods. The trainer should know
the rationale of each of the methods before attempting to use any of them. Objectives of
Training Methods Training methods have a number of overlapping objectives. As stated
earlier, they have to be chosen in relation to the programme design requirements. The main
objectives of individual training methods could be: demonstration value, developing interest
and finally, appeal to senses.

25

However, more than one, or even all three objectives may be found in one method.
Demonstration Value Complete demonstration of job requirements is training of a kind that
enables the trainee to grasp the meaning of ideas, concepts, or procedures visually. Such a
method can be used effectively as an aid to overcome the "breakdown of communication".
People remember things that they see and hear, much longer than they do information they
receive through talks or reading, alone. Developing Interest One of the factors to be kept in
mind in choosing a method is its ability to hold and arouse the interest of the trainee in the
learning situation. Much research has been done in the field to test the effectiveness of
various methods. A trainer has to consider alternative methods of presenting training material
to participants in order to stimulate their interest and facilitate retention of the matter. For
instance, if traditionally the matter has been presented through lectures, perhaps audiovisual
methods could be used, or instead project work be assigned which would mean learning by
doing or researching the subject oneself. Appeal to Many Senses The statement that "to see a
thing once is better than to hear it a hundred times emphasizes the inadequacy of words as a
means of communication. Experience indicates that almost 75 per cent of what we imbibe is
through the sense of sight and the rest is through the sense of hearing, touch, smell and taste.

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From the trainer's point of view it would be beneficial to utilize as many of the trainee's
senses as possible, in order to improve retention of learning. Application of these basic
objectives or guidelines alone would not be enough. For the appropriate use of a method,
problem analysis and needs identification are also necessary.

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The trainer has to understand and identify the problem area; what is wrong, and where is the
correction needed? He has to examine whether there is a problem with the manner in which
the task is done, i.e., an operational problem, or whether there is a problem with an individual
or individuals, i.e., a human-relations problem. Secondly, selecting the appropriate method
would be dependent on the level of the trainee in an organizations' hierarchy-is he a shop
floor worker, supervisor or a manager? Finally, before selecting a training method, the trainer
should keep the mind cost effectiveness. Classification of Methods Depending on the
learning outcome, and the process by which it is attained, it is possible to categorize the
various methods into several groups. On-the-job-oriented Training Methods In this cluster are
included methods whose main objective is centered around the job, more specifically,
learning on the job itself by a variety of methods. They embrace development through
performance on the job, where organizational strength and constraints, human behavior and
technological systems have full and free play. Methods, which fall into this category, are: 1.
On-the-job training. 2. Job rotation. 3. Guidance and counseling. 4. Brainstorming sessions.
5. Syndicate method (working in small groups). Simulation Methods Real-life situations are
simulated for imparting training. The methods falling in this category are:

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1. Role-play. 2. Case method. 3. Management games. 4. In-basket exercise. Role Play The
role-play method requires participants to enact roles on the basis of a written script or an oral
description of a particular situation. The enactment process provides an insight and
understanding of the demands and situations of the assigned role, thereby facilitating
empathy with another's (actual) role. The main emphasis in management training is in
facilitating better understanding of interpersonal problems, and attitude change. If not
handled well, however, it could degenerate a childish exercise, where, instead of focusing on
the problem to be understood, the situation might be over-dramatized. Case Method The case
is an actual situation, which is written for discussion purposes. Analysis would need problem
identification, analysis of the situation and of its causes. There could be several solutions to

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the problem, and each of these alternatives and their implications needs to be examined. In
the real world, on many occasions, a manager may not have all the relevant information with
him before taking a decision. Similarly, the case method approximates this reality and in
many situations decisions are taken with limited data, or what is termed decision-making
under uncertainty. The managerial response in such a situation is explored and understood
and learning consists of developing problem-solving skills. Management Games The game is
built around the model of a business situation and trainees are divided into teams representing
the management of competing companies. They simulate the real-life process of taking
operation decisions. Decisions taken are analyzed by a computer, or manually, and a series of
the

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implications of these decisions are fed back. The game is played in several rounds to take the
time dimensions into account. In-basket exercise This is a simulation training technique
designed around the "incoming mail" of a manager. A variety of situations are presented
which would usually be dealt with by an executive in his working day. His reactions and
responses are taken down in writing and then analyzed. Feedback on his decisions forces him
to re-consider not only his administrative actions but also his behavioral style. Knowledge-
based methods In this method of training, an effort is made to expose participants to concepts
and theories, basic principles, and pure and applied knowledge in any subject area. Basically,
it is aimed at creating an awareness of the knowledge of fundamentals. The focus is
essentially transmission of knowledge which has to be imbibed by the participants. The
methods in this category are: 1. Lectures. 2. Seminars, workshops. 3. Educational training
programmes at academic institutes. 4. Programmed instruction in which knowledge is
disseminated in book form to be learnt at the individual's pace, and where feedback on the
learning is a given aspect of the method. 5. Films and TV. 6. Group discussion, especially in
combination with some of the above, for assimilation and integration. Training Organization
There are several administrative aspects that have to be taken into account before launching
in-house training programme, or nominating participants to external programmes.

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In-Company/External Programmes The company needs to formulate its thinking regarding

participation in programmes offered by external agencies like educational management
institutes, government institutions and consultant programmes, vis-à-vis conducting its own

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in-house programmes. Where employee numbers are small, it may not be worthwhile to set
up a training establishment and conduct in-house programmes, but as the numbers increase,
this options may offer a distinct possibility. There is the cost aspect to be considered: for the
cost of sending a participant to an external programme, several employees could be trained
within an organization. Yet, the advantage of an external programme would be a breath of
fresh air through discussions with other participants and a fresh approach could be brought
into the organization and its problems. The skills and techniques learnt might also be
different from those offered by one's own in-house programmes. Training Budgets A training
budget for each internal programme has to be prepared, which would include cost of facilities
like training room, food, transport, guest faculty, if any, and cost of teaching materials. In
fact, the cost to the organization should also include the wages and salaries of employee
participants who would be temporarily pulled out of their regular jobs and sent for training.
Yet, organizational requirements would necessitate their jobs being done by someone else.
The reason for costing the trainee employee's salary would be that they would not be making
any contribution to the company during the training period, and that this is an additional
burden on the company's finances. Evaluation of Training Evaluation of any activity is
important, since in evaluating one tries to judge the "value or worth of the activity, using the
information available". What is the purpose of evaluation? Evaluation, by bringing to the fore
"weaknesses and failures…strengths and successes," helps to improve

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training methods. Evaluation helps management to answer the following questions - The
relevance of the programmes to the organization's needs-what changes if any should be made
in existing programmes to realign to the organization's needs. - Feedback on the choice of
areas of training will also need to be examined in the context of its contributions to the
organization's effectiveness. - Should the money continue to be spent on this activity, or
another more relevant activity that will improve attainment of the organization's objectives?
Reactions from trainees about the training programme can help identify its strengths and
weaknesses. These reactions can be used as a base for the improvement of programmes, but
those evaluating must first be definite about the aspects they are interested in investigating.
An evaluation of a training method or system must also take into account the suitability of
objectives. "If the objectives were inadequately formulated in the first place, even a 'good'
training programme has really no chance to be effective." Objectives have to be clear-cut,
must relate to needs, and make way for changes. Objectives cannot be static and need to be

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re-appraised frequently so that training may result in improved overall organizational
efficiency. Evaluation of objectives helps to bridge the gap between needs and objectives.
The Evaluation Process The most useful means of evaluating training are observations,
ratings, trainee surveys and trainee interviews. Observation is concerned with observing the
behavior of people in a certain situation. To be useful, it must be specific, systematic,
quantitative, recorded and expert. Needless to say, observers, must be trained and have
specific ideas about what they are

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looking for. This is the most direct method of "assessing the quality of formal training and of
identifying deficiencies". The second method of evaluation is that of ratings. "Various
elements of the training system should be rated independently by several qualified raters.
These elements include trainees, instructors, equipment, materials, training aids and
facilities." The use of rating scales requires supervised practice, as it is easy to commit errors.
The third method is trainee surveys where opinions of the trainees are used for evaluation.
These opinions should not be used independently, since they cannot always be relied on to be
objective. The fourth method is trainee interviews, whereby ideas and views that trainees
might not put down on paper can be determined by "skilful questioning". This method allows
for more precise information and details to be obtained and prevents ambiguity, especially in
interpretation. The final method is that of collecting the observations and recommendations
of instructors through surveys and interviews "to ensure that the system is consistent with the
needs of the implementers of the training". Interviews with instructors will bring to the
surface characteristics that instructors may feel reluctant to put down on paper. Is Training
The Best Medicine? Imagine this: A man is having chest pains. He rush as to his doctor, tells
him he is having a heart attack, and demands that he perform open-heart surgery. He
obligingly agrees. It is not until after a great deal of pain and expense that he discovers it was
only in digestion. When it comes to training, a similar situation happens all the time. If scrap
rates are too high, productivity is too low, and employees neglect to follow standard quality
procedures, they must need more training. Before rushing into the pain and expense of
interrupting production to send them off to a seminar it is necessary to make sure that training
is the proper solution.

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Just as a doctor must understand the cause of a patient’s symptoms before he can attempt a
cure, one needs to know why employees are not meeting the company’s expectations before
taking action. That’s where a training- needs analysis will help. It tells how well employees
are doing their jobs, where they could use some improvement and how that improvement can
best he achieved. Done correctly, it can save the company from wasting a lot of time and
money on inappropriate training programs. Gathering the information To do a valid training-
needs analysis, one needs to gather as much objective data about employee performance as
possible. There are many ways to collect this information, including: • Casual conversations

• Formal interviews

• Direct observation

• Work samples

• Written records

• Surveys

• Tests

• Focus groups

A professional trainer can be hired to perform an analysis but it’s not just a technique for
trainers. Everybody should be trained in this simple process. It’s a supervisor’s or a
manager’s job to make sure people can do their jobs. To do training needs analysis the
following steps should be followed: Study current performance: Before tying to change
anything, it’s essential to know what is already happening. What skills and knowledge do
employees already have? What tasks are they performing on their daily jobs?

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Define ideal performance: what standard of performance is necessary for the business and the
employees to be a success? What tasks must they do? What level of accuracy or productivity
should they achieve? What skills and knowledge must they have? Find the gap: What is the
difference between the definition of ideal performance and what the employees are currently
doing? Are there any areas that aren’t functioning as well as they should? Where are there
opportunities for improvement? This is the “performance gap” that the company is trying to
fill. One must look for problems or opportunities that may occur in future as well as ones that

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already exist. Identify the cause: Why are workers not working up to standard? Have they
ever performed the job correctly? Where and when do the problems occur? Has anything
changed recently that might have instigated the problem? Compare best and worst performers
to find the differences in what they do. When these steps have been completed one should be
ready to make diagnosis, but it must be remembered that training is not the only medicine for
ailing performance. Although it is often mistakenly applied as a cure- all, the only problem
that training can solve is a lack of skills and knowledge. Do employees know how to do the
job? Could they do it if their lives depended on it? If so, probably there is no training
problem. There are many reasons why a worker might not be doing his job correctly,
including unclear expectations, insufficient feedback, lack of incentive and adverse working
conditions. These are all management problems that can only be improved by management
changes. Too often, people see the gap and they want to just leap right in and fix it. “The key
is not to jump to the solution, which is assumed to be training. Understanding the situation is
the first step. Then, once one understands the situation one can think about why (The problem
exists). Only if it’s because (employees) lack skills and knowledge should training be
considered as a solution.

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TRAINING & TRAINING NEED IDENTIFICATION Training: After the best applications
for the available positions have been selected, the staffing process is almost complete. Now
the retail firm must give the selected applications the knowledge and skills they need to be
productive employees. The process of bringing a new hire up to speed is called employee
training. Knowledge of company’s policies and procedures and of the store’s products and
services is basic to all positions. So are an understanding of the store’s customers and their
needs and desires, knowledge of competitive retail offerings, and basic information about
dress codes, sick leave, parking, and scheduling. Basic information about the firm usually is
spelled out in the employee’s handbook. The firm should make the employee handbook
available to new employees as soon as they are hired. The Whole Foods Market, whose
highly regarded handbook was mentioned earlier, includes key aspects of the firm’s strategic
plan. Employees of the firm found the material so helpful that they suggested new hires take
a quiz on the information to determine whether they understand it. Whole Foods follows the
legally recommended practice of keeping a file of signed forms indicating that employees
have received and have had the opportunity to read and understand the company handbook.
The difference between the knowledge and skills the job requires and those the new hire

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possesses will depend on the individual. A person who has worked for the store in the recent
past will need little training, whereas someone with no experience in retailing will needs a
great deal. To avoid moving too quickly for some employees and too slowly for other, some
firms have structured their training programs in units so that materials can be skipped or
repeated as necessary. The key to successful training is to ensure that new employees get the
information they need early in their careers. Unfortunately, reduced profits and high
employee turnover have forced some companies to reduce the time and money devoted to
training – a move that almost guarantees human resource problems.

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Training programs can use a variety of educational tools. Lectures, videotapes, manuals, role
playing, and computerized exercises can be useful. The key to determine the type of
information employees need to learn and then match that need with the most appropriate
learning tools. A lecture or videotape may be the best way to communicate the history of the
organisation, whereas role playing may be more effective in teaching selling and negotiation
skills. Compares initial employee training with the ongoing activity of keeping employees’
skills up to date. As the figure shows, employee training is designed to increase the new
employee’s skills to the point where he or she can perform on the job effectively. The size of
the gap between the incoming employee’s skills and the skills needed to perform the job will
vary, as will the amount of time needed to close the gap. However, once that gap has been
closed, the staffing function is still not complete. Over time employees will need new
knowledge and skills as job responsibilities, products, technologies, and customer needs
change. Fig.: The Role of Training and Development in Fighting the Obsolescence of Human
Resource

Level Required for Effective Performance

Employee’s Actual Level

Employee Development

Employee Training

Knowledge and Skill Level

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Employee’s Tenure with the Firm This ongoing process of the employee development is
crucial to the retail firm’s ability to compete. A firm that fails to design and implement an
employee development program will soon face employees obsolescence- the outdating of
employees knowledge and skills to the point where employees can no longer perform
effectively. A series of activities are needed to keep employees current. The ideal situation
occurs when new hires get all skills they need through employee training and then receive
enough employee development to minimize the gap between their skills and the requirements
of the job. Employee development program can include books and magazine subscriptions,
seminars, short course, college course, and advanced degrees, as well as in-store meetings.
Many companies fund part or all of the cost of employee development, but the employee
must shoulder part of the responsibility for staying up to date. Increasingly, companies are
looking for employees who are true students of the retail industry. As knowledge and
technology continue to advance rapidly, fighting employee obsolescence will require
diligence on the part of both employee and employer. While it is essential to have a training
philosophy, policy and standards, it is impossible to judge whether our training is in
accordance with these if there is no clear definition of training. For example, a company
might have a target to give each of its employees five days of training every year. Depending
on what is considered to be training, one company might say it is providing three days of
training and another company might claim nine days- even though both companies’
employees have received exactly the same amount of training and development. An amazing
number of activities might be considered as training. The following is just a selection:

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• Classroom (trainer led),

• Distance learning,

• Computer-based training,

• On-the-job training,

• External courses,

• Large-scale workshops,

• Attendance at seminars,

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• Attending conferences,

• Attending communications meetings,

• Evening classes,

• Further education,

• Assignments,

• Participating in quality circles,

• Reading articles and books.

Some of the above activities, such as classroom training and computer- based training, would
always be considered as training. Activities such as exhibitions, conferences, assignments and
reading would not usually be classified as training. Clearly on-the-job training should be
considered as training, but surely not all of the time spent under supervision should qualify
for the employee’s hours of training. The conclusion we came to was that the time spent on
producing usable output should not be included in the training time. In Europe and the United
States, participating in quality circles would probably not be considered to be training
because the prime purpose of a quality circle is thought to be solving the company’s
problems. Any learning that comes about would be though to be secondary. In fact, this is
another

38

indication of how Western culture misunderstood Japan’s quality revolution, because one of
Japan’s main aims in starting quality circle activities was to enable the factory workers to
study together and teach themselves quality control. Without a definition of training, deciding
whether an activity should be recognised as training becomes very subjective. The working
definition of training that I use is: ‘Training is the transfer of defined and measurable
knowledge or skills/’ From this definition it can be seen that training activities should have
objectives and a method for checking whether these objectives have been met. Training,
defined in this way, deals only with changes in behaviour and knowledge. Some definitions
include changes of attitude as part of training. I have not included attitude change within the
definition because, apart from being incredibly difficult to measure, it is the environment and
culture of a important part to play in this, an can help create the environment in which

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attitudes can change, but training alone will not change anybody’s long-term attitude. Many
different attempts have been made to define what constitutes a training activity, and these all
vary depending on the definition of training that is used. Having agreement on a definition of
training is more important than which of the many good definitions you decides to use. This
allows you to be aligned within your own company, and to make sensible comparisons with
other companies. If you have not already done so, this would probably be a good time to
consider which activities in your company should be considered as training. Training
activities are those activities which are paid for by employers and take place in accordance
with a programme which: • Has pre-determines objective,

39

• Specifies the teaching methods,

• Specifies the personnel to be used,

• Has an implementation plan,

• Assess the results,

• Is given in premises separate from the production area unless it includes practical training. •
Can include correspondence courses, safety and security training and training outside of work
hours.

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Managing the Training Process

Identify needs

Evaluate needs

Select courses

Determine workload

Select trainers

Identify location and resources

Finalize budget

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Finalize training plan

Pre-course admin

Prepare course

Deliver Course

Validate training

Post-course admin

Transfer learning

Evaluate training

Revise course

Select trainers

Select courses

Select trainers

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Training as part of the Business A useful approach for understanding the training process is
to consider it as a system whose boundaries interact with the rest of the business. Training
needs are identified, training is provided to meet the needs, the output is compared to the
requirements and any necessary changes are made to the system to obtain the desired output.
While this approach helps you understand how training processes operate, it does put training
at the centre of the universe. The effect of this training- centred approach is that the business
will see training either as a panacea for all problems or as having no direct relevance to the
business. Neither of these impressions will help you manager the training process effectively.

Training as a system whose boundaries interact with the business ‘A learning organisation is
one which facilitates the learning of all its members and continuously transforms itself to
achieve superior competitive performance’. Figure shows a system that is displaying ‘single-
loop learning’. The output of the system is compared to a set of standards and adjustments are
made to counterbalance any deviations from the standards. More advanced learning

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organisation would have progressed to ‘double-loop learning’ where the standards themselves
are challenged.

Needs Training Skills and knowl edge

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THE BUSINESS

Training as part of the business system The concept of the learning organisation does not
replace training. As you can see from figure, training is a vital component of learning. It is
important not to overlook this fact, as there have been examples of organisation that they
have, to their cost, overlooked the basic of training.

Assessment

Busine ss strateg y

Actions

Training

Customer Requirements

Organizational learning

Individual learning

Experience

Training as part of the learning organisation

Training

Education

Business Process

Organisation Development

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Training Strategies The training process is a cycle that you need to manager continuously.
You respond to needs. You ensure that the training is aligned with the business. The cycle
time is short term-usually no longer than a year. Managing the training process is essentially
operational or tactical. If we always manage training at this level we are in danger of being
reactive rather than proactive: starting and stopping training programmes or perhaps even
failing to deliver anything. We need to have a clear idea of how we are going to deliver
training over a longer period. Training needs analysis and training policies provide the ‘what’
and the ‘how much’. A training strategy provides the long-term orientation. To put a training
strategy together you should have a ‘vision’ of what training in your organisation should look
like in, say, five years. You should then map out the years and the key milestones along the
way. When you are putting a training strategy together you should ask yourself the following
questions: • How much training will you need to do each year?

• What type of course will you need to provide?

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

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

• Who will you use to do your training?

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

• What delivery methods will you use?

• How will changes in technology affect delivery methods?

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

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Every time you cycle through the training process you should re-examine your training
strategy to see if it still holds up in the light of new training requirements and corporate
policies. This is an example of ‘double-loop’ learning. Try to make your strategy as robust as
possible, and only change strategies when there are significant business, social and
environmental changes. If your strategy is really robust you will find that you can respond to
many changes by adjusting your tactics rather than throwing aways your strategy. It is
difficult but essential to find the right balance between constantly chopping and changing

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strategies, and sticking with a useless and outmoded strategy. Here I will be covering two
steps of the training process: • identify needs,

• Evaluate needs.

Identifying training needs is the starting point for managing the training process. Yet this is
often one of the last steps to be considered seriously – probably because a proper needs
analysis is both difficult and time consuming. Initially, it might be quicker and easier to
forget about analyzing the needs and have your customers pick and choose from a catalogue,
but this will ultimately lead to frustration and inefficiency. Identifying training needs is not
just a matter of finding the need and them simply satisfying it. There are often conflicting
requirements from different interests within the company. The development needs of the
individual have to organisation. These needs, once identified, have to be matched to
appropriate training courses. Sometimes there is a feeling that training will always be the
solution for every identified development problem. However, there is not point in providing
training if training is not an appropriate solution. When this is the

45

case the training manager has to be brave enough to say that it is not appropriate – and
creative enough to suggest alternative solutions.

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NEEDS IDENTIFICATION Needs identification has to balance corporate demands, policies

and strategies as well as individual and organisational requirements. Figure outlines a process
that balances these requirements. It shows that corporate policies and strategies should be the
’umbrella’ under which individual and organisational training needs are identified. This helps
to ensure alignment of training activities with the business direction. Collect corporate
policies and strategies Corporate policies and strategies form the boundaries within which all
training and development activities should take place. There are two ways in which corporate
policies and strategies give rise to training needs. The first is directly through mandatory
training. The other way is through indirect influence. When an organisation outs its training
plan together it should take account of both the business plan and individual development
needs. This is where the process often breaks down and even the indirect influences start to
disappear. Policy deployment which is a structured method of Cascading corporate goals and
strategies through the company is a powerful method of ensuring that training needs are

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identified within the context of the company s business goals We discussed the importance of
alignment and of getting the corporate basic right. If this has been done well, you will have
no difficulty in collecting corporate policies and strategies. You will then be able to prepare a
training plan that supports the direction of the business.

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If your company is confused about its strategies, or does not communicate them effectively,
you might as well as miss this step out completely and be resigned to providing training that
cannot completely support the business.

Start by reading your company’s policies on training and development, reviewing the
company’s vision and understanding the current goals and objectives. Identify mandatory
training Company policy dictates which employee groups are required to undergo prescribed
courses. Some courses, such as ‘induction training’ and ‘total quality management’, are an
integral part of company’s culture so all new employees have to attend this training.
Company strategy may also require all personnel to go through specified forms of training in
a relatively short period. Examples of this kind of training are: • equal opportunities,

• empowerment,

• harassment,

Collect corporate policies and strategies

Identify business needs

Identify mandatory training

Identify individual needs (appraisals, requests, counseling)

Identify departmental needs and skills for each job

Identify affected individuals

Enter potential needs on training records

Produce training requirement reports

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• financial responsibility,

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

• New legal requirements.

Compulsory courses will usually be aligned with the company direction because they have
been developed centrally for company-wide implementation. Identify business needs Policy
deployment and the training forum are two essential tools for identifying business needs.
Policy deployment and the training forum’s role in defining the basics of the training process
are both covered. Policy deployment is the process by which a company’s strategies are
communicated to its organisations. An organisation then determines what it need to achieve
by understanding its part in the company'’ strategy. The ‘what’ should be measurable and
take the form of goals or objectives. Once an organisation has determined what it has to
achieve, it then has to decide how these objective will be met. Once the ‘how’ has been
identified it is possible to determine the skills and knowledge the organisation will require.
The training forum’s role at this stage of the process is to: • provide a ‘forum’ for identifying
an organisation’s business needs,

• ensure that training plans are aligned with the company’s direction,

• Identifying opportunities for sharing or exchanging resources.

The training forum comprises training managers and other interested parties who meet to
discuss training plans. They also identify opportunities for sharing resources. A forum is
particularly useful when there are several, dispersed training departments within a company.
The forum would normally need to meet twice a year: the first time to understand both
corporate requirements and local issues; the second

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meeting to review draft training plans. Figure shows typical timings for the two training
forum meetings. MAY JULY/AUGUST OCTOBER

Schedule for training forum meetings Timing of these forum meetings is critical and depends
on which month is the start of the organisation’s financial year. The output of the second
meeting needs to be available for inclusion in the annual business plan. Individual
development plans should be completed before the draft department training plans are put

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together. The training plans will be based on guesswork if the development plans are not
available. If the development plans are available too early, the training plan could be out of
time by up to six months. Identify individual needs Identifying training needs via business
requirements is a ‘top-down’ approach which satisfies the need for training to be in alignment
with the business direction. If we were only to use this approach, the coverage would be too
broad to pick up individual development requirement. We also need to consider ‘bottom-up’
training requests and to make sure that both sources of training requirements complement
each other. Individual training requirements come either from direct requests or as a result of
appraisal discussions. Because these development plans are always up to date, the training
needs analysis can be done at any time of the year. The training administrator can

Forum Meeting (Pre- planning)

Forum Meeting (Plan review)

Departmental training plans prepared Training plan prepared

Overall Requirements

Departmental Requirement s

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request copies of the current development plan when the needs analysis has to be done.
Identify departmental needs So far we have seen how training departments can be aligned
with each other and with the corporate business direction. We have also seen how individual
development requirements can be identified. We now need to see how the detailed
departmental training needs are identified. The processes already described should ensure that
the department's raining demands are based on corporate or company business needs and
requirements. The individual’s requirements give us a picture of the demand within a
department but not necessarily the need. in fact, the process for identifying departmental
needs is very similar to the process for identifying need at the corporate level. Each
department should assess where it is. The department should have a vision, a mission and a
strategy for realizing the vision. Identify skills and training required for each job The
department's mission, and the work processes the company uses, determine the jobs the
department needs to produce its products and services. Each job has an associated set of
skills. New jobs required new skills. In its simplest form, identifying the training required for

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each job involves: 1. Identifying the skills required to do a job. 2. Comparing the required
skills to the current skills level of the people who will be doing the job. It is training's
function to bridge the gap between current and required skills. The skills and knowledge
required for every job should be documented. You should also document the courses that a
representative person will need to reach the required skills level. This makes it easier to select
the correct

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courses. A representative person is the type of person you would normally employ to do the
job. The basis of identifying and documenting the required skills is the 'job description'. a job
description should include the tasks that have to be performed and the outputs that have to be
produced by the job holder. Outputs are products or services that ate handed on to someone
else. An output should have a standard or specification attached to it so that the quality of the
output can be measured. The next step is to prepare a 'person specification' from the job
description. A person specification describes the ideal person to fill the job. It is a profile of
the required personal skills and characteristics. These skills and characteristics are also
known as competencies. For job descriptions which cover a large number of employees it is
worth producing a 'training specification matrix'. This matrix describes the training courses
that correlate to the skills described in the person specification. You shouldn't be surprised if
all this sounds rather familiar. It is exactly the same as the recruitment processes the only
difference being that we are developing existing people to fit the person specification rather
than recruiting the 'ideal' person. If you are recruiting to fill a vacancy, you may not be able
to find anybody who fits the person description. You might also want to give people who do
not yet meet the person specification a chance to work at a higher level. In such cases you
will need to provide additional training to bring these people to the required level. Identify
affected individuals Arising out of your analysis of corporate policies, mandatory training,
business needs and job skills requirements, you will be able to identify which groups of
employees will need what training. For example, all new managers will need training on the
basics of management, and all electronics assembly people will need training on electrostatic
protection.

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Effective training processes need to be managed at the level of the individual, so the next step
is to identify those individuals who are part of the group which needs the training. This task is

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make a great deal simpler by computerized personnel and training records. If each person's
job is given a job code, the computer can print out a report on the people who have a
particular type of job and have yet to receive the required training. This task if make even
easier if the personnel and training records are part of the same database. If you have separate
records, you will need to update the training database every time someone joins, leaves or
changes jobs. Enter potential needs on training records A training record should not only list
the courses a person has attended but also the training a person needs. It is easier to prepare a
training plan if the record gives a range of dates for when the training is required. The
potential need can be in the form of either a course or a skill. It is important that the training
record is a live reflection of current training requirements. It should be revised any time a
new training requirement is identified. This can be after appraisal, when a training request
form is received or after an individual has attended an assessment centre. This means that an
up-to-date training plan can be pulled off the system at any time of the year. Produce training
requirement reports A training record shows the training that individuals have completed and
the training that they need to do. The next step is to sift through all the training requirements
so you can evaluate the needs and estimate the amount of training that needs to be done. This
can be done manfully, but it is much quicker if you have computerized training records. A
computer can produce training requirement reports that list: • All the people who have
requested a particular course,

• All the people who need a particular skill,

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

Needs evaluation All training requests need to be validated to ensure the training is both
appropriate and necessary. The amount of effort and time required to validate the training
requirements depends on the quality of the input received. The best time to evaluate training
needs is when the needs are being identified. This is why it is worth spending the time to run
development open days and to train managers in development needs analysis. In an ideal
situation the training administrators should only need to perform a quick request. FIG:-
PROCESS OF EVALUATING TRAINING NEEDS

Check individuals have not previously been trained

Check that training is an appropriate solution

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Check queries with managers

Prepare draft training plan

Find alternative to training

Estimate impact of training load

Discuss draft plan with organization heads and human resource managers

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Counseling Counseling is a critical skill for managers and it is especially important when
training needs are being identified. The steps in the counseling process are: 1. Set climate. 2.
Set expectations. 3. Seek counselee’s views of strengths and weaknesses. 4. Agree a
development plan. 5. Summarize. Although the process there describes a training manager
counseling a trainer, the techniques are just as applicable to appraisal and development
discussions. Prepare a draft training Plan When you have validated the training requirements
you are in a position to put a draft training plan together. This should include estimates of: •
The number of trainer-days you think you will have to provide,

• The spread of the training load over the year.

• The cost of the training

• The number of days of training per employee.

Estimate impact of training load Take the draft training plan and consider its impact from two
perspectives: 1. The impact on the training department, 2. The impact on the organization.
The impact on the training department is really a question of whether it has the capability,
space, budge and resources to meet the demand. If it does not have the capability to deliver
the demand, now is the time to signal that you may need more resources.

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The impact on the organization is a little more subtle. Try asking yourself the following
questions to help you understand the impact: • What do the estimated hours of training per
person mean in terms of people being away from the workplace? • What are the expected
short-term penalties, in increased production times and costs, compared with the long term
benefits? • How many people can you afford to have absent from one department at the same

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time? • What other claims are there on the budget you need to deliver the training plan?
Discuss draft plan with organization heads and human resource managers Considering the
impact of the training puts you in a good position for discussing the draft plan with senior
management, departmental managers and human resource managers. The purpose of this step
is to get buy-in' from the stakeholders before you go public with the final plan. It is far better
to deal with 'fatal flaws' and objections at this stage than later on in the training cycle. You
can discuss what the demand and training load mean to avoid nasty surprises later in the year.
You can get agreement to the proposed budget. you can discuss issues. You can discuss
whether all the requested training is appropriate.

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OBJECTIVE OF THE STUDY The objective of my study is to examine the training and
development process being followed by HDFC Bank.- • To identify functional skill areas of
personnel, for more effective contribution to the organization. • To provide platforms for
professional growth and exploration leading to overall improved organizational health and
quality of life. • To develop human resources in consonance with broader corporate horizon
and long-range vision of the organization. • To study the various Training & Development
activities undertaken by HDFC Bank. • To study the Training methodology adopted by
HDFC Bank.

• To study the effectiveness of Training provided by HDFC Bank.

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PURPOSE OF THE STUDY Never before has the rapid increase in new knowledge and
technology and in the base of change and itself demanded a learning response as great as
what is now required to remain competitive. Today individuals and organizations must
become continuous learners to survive and hence it is not surprising to find that most
successful organisations operate in a continuous learning mode. The challenge of
globalization, technological innovation increasing competition and growth through
expansion, diversification and acquisition has had a wide-ranging and far reaching impact on
HRD. There is a need for a continuous process that aims at providing fresh knowledge and
skill inputs to the employees so as to ensure the development of their competencies,
dynamism, motivation and effectiveness in a systematic and planned way, thereby improving
the productivity and overall organizational effectiveness. As a result, training and

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development activities have acquired great significance and are now firmly centre-stage in
most of the organizations. Hence it can be said that with the advent of free market economy
rapid change in the environment, training and development activities have assumed an
importance never before witnessed in Indian corporate history.

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SCOPE OF THE STUDY 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. Traditional Approach – Most of the organizations before never used to
believe in training. They were holding the traditional view that managers are born and not
made. There were also some views that training is a very costly affair and not worth.
Organizations used to believe more in executive pinching. But now the scenario seems to be
changing. The modern approach of training and development is that Indian Organizations
have realized the importance of corporate training. Training is now considered as more of
retention tool than a cost. The training system in Indian Industry has been changed to create a
smarter workforce and yield the best results The Training & Development programmes
usually provided valuable inputs to the trainees for performing present as well as future roles
effectively. So, the project is beneficial for the HDFC Bank to improve for the betterment of
the organization as well as the industry.

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