A Dissertation Project Report

on

IMPACT OF GST ON THE INDIAN ECONOMY

Submitted to
Amity University Kolkata

In partial fulfilment of the requirements for the award of the degree of

Bachelor of Business Administration

By

MIHIR SINHA

Under the guidance of

Mr. Ribhu Ray

AMITY SCHOOL OF BUSINESS

AMITY UNIVERSITY KOLKATA
 CERTIFICATE

This is to certify that the Project work entitled “Impact of GST on the Indian Economy” is a
record of bona fide work carried out by Ms. Mihir Sinha, under my supervision towards partial
fulfilment of the Bachelor of Business Administration of the Amity University Kolkata.

Place: _________________ Guide’s Signature

(Mr. Ribhu Ray)

Date: _________________
 DECLARATION

I, Mihir Sinha, hereby declare that my project report entitled “Impact of GST on the Indian
economy” is written and submitted by me.

The findings and interpretations in the report are based on both primary and secondary data
collections. This project is not copied from any source or other project submitted for similar
purpose.
 ACKNOWLEDGEMENT

In pursuing and completion of my BBA and other commitments, I undertook the task of
completing my Dissertation on “Impact of GST on the Indian economy”.

I am thankful to Mr. Ribhu Ray, Faculty Guide, Amity University Kolkata, for his valuable
guidance and support at all time.

Last but not the least my special thanks go to all those who have given all the secretarial support-
despite all other commitments.

MIHIR SINHA

BBA 6A

Enrol. No. A90606419122

 TABLE OF CONTENT

INTRODUCTION

 Foundation of review
 Objective of study

LITERATURE REVIEWS

HUMAN RESOURCE MANAGEMEMT

 Human resource management and training

 training Purpose, Process and results
 Why training
 Training process
 Necessity for learning
 Methods of learning
Chart
 Factors affecting training
 Importance of training
 Performance appraisal
 Types of training

CONCLUSION

REFERENCES

ANNEXURE

SUGGESTION
 INTRODUCTION

The target of this study is the effect of training and development of employees and its impacts on

the exhibition of an endeavor or association. This part gives starting data on the foundation,

issue, and targets of the work. It likewise has data on the degree and critical of the review.

Foundation of the review

Training is exertion started by an organization to cultivate learning among its laborers, and

development is exertion that is situated more towards expanding a singular's abilities for the

future obligation. (George and Scott, 2012). Training and development are a consistent exertion

intended to work on representatives' capability and put together execution as an objective to

enhance the workers' ability and execution. Human Resource Management plays had a critical

influence in the financial advancement of most evolved nations like Britain America and Japan.

In an agricultural nation like Cameroon, with its rich regular assets and monetary help, one can

likewise experience such financial achievement on the off chance that the suitable consideration

is given to the turn of events and preparing of her HR. Each angle and exercises in an association
affects individuals. For example, a supervisor won't find success in the event that he has

subordinates who are not exceptional with abilities, information, capacity, and capability.

To run an organization, be it small or big, requires setting up the organization with productive

faculty. Explicit work abilities, capacity, information and capability required in the working

environment are not effectively instructed 'in the proper schooling. Accordingly, most workers

need broad preparation to guarantee the fundamental expertise, information, capacity and ability

to bring out considerable commitment towards the organization's development. For employees to

be adaptable and powerful in their work, they need to obtain and foster information and ability,

and for them to accept that they are esteemed by their employer, then they need to see important

signs of the executive’s responsibilities to their preparation needs. Each new employee should be

appropriately prepared not just to foster specialized abilities, however to make them a integral

part of the organization. Training and development is an angle that should be looked by each

association, and its significant point is to work on there preventatives' skills with the end goal

that the association can boost adequacy and effectiveness of their HR. It tends to be a benefit for

an association assuming they win the "hearts and psyches" of their laborers, inspiring them to

relate to the association (Armstrong, 2009). For laborers to be prepared to perform well there

should be an interest in the preparation processes. These cycles are essential for the whole human

asset the executive’s approach which brings about representatives being roused to perform.

Nonetheless, preparing differ from one association to another comparable to the quality and

amount of preparing factors, which might include: the level of outer climate change, the level of

progress in the inside climate, current reasonable abilities in the current work force and the level

to which the board consider preparing to be a persuading factor in the working environment,

(Cole, 2002).
Several companies address their needs for training in an impromptu and indiscriminate way,

training in such companies are pretty much impromptu and unsystematic. Different companies

however begin distinguishing their training needs, then outline and execute training exercises in

a normal way, lastly evaluate after effects of the training.

Objective of the study

The primary goal of this work is to realize the way in which preparing expands the exhibition of

employees, and the efficiency of an organization. Different goals are to see if, have training and

development program and on the off chance that the projects are led for all employees.

Additionally, to look at the obstacles in the execution of such projects, and to figure out the

useful impacts.
 LITERATURE REVIEWS

Human resource is the very important and the back bone of every organization and is also the

main resource of the of the organization. So organizations invest huge amount on the human

resource capital because the performance of human resource will ultimately increase the

performance of the organization. Performance is a major multidimensional construct aimed to

achieve results and has a strong link to strategic goals of an organization (Mwita, 2000). As the

Mwita (2000) explains that performance is the key element to achieve the goals of the

organization so to performance increase the effectiveness and efficiency of the organization

which is helpful for the achievement of the organizational goals. But the question arises that how

an employee can work more effectively and efficiently to increase the growth and the

productivity of an organization (Qaiser Abbas and Sara Yaqoob). There are many factors which

improves the work of the employee such as flexible scheduling, training etc.

It is very necessary for the organization to design the training very carefully (Michael

Armstrong, 2000). The design of the training should be according to the needs of the employees

(Ginsberg, 1997). Those organizations which develop a good training design according to the

need of the employees as well as to the organization always get good results (Partlow, 1996;

Tihanyi et al., 2000; Boudreau et al., 2001). It seems that Training design plays a very vital role

in the employee as well as organizational performance. a bad training design is nothing but the

loss of time and money (Tsaur and Lin, 2004). On the job training helps employees to get the
knowledge of their job in a better way (Deming, 1982) People learn from their practical

experience much better as compare to bookish knowledge. On the job training reduces cost and

saves time (Flynn et al., 1995; Kaynak, 2003; Heras, 2006). It is better for the organizations to

give their employees on the job training because it is cost effective and time saving (Ruth Taylor

et al., 2004). It is good for organization to give their employees on the job training so that their

employees learnt in a practical way (Tom Baum et al., 2007). Delivery style is a very important

part of Training and Development (Carlos A. Primo Braga, 1995). Employees are very conscious

about the delivery style Michael Armstrong, 2000). If someone is not delivering the training in

an impressive style and he is not capturing the attention of the audience it is means he is wasting

the time (Mark A. Griffin et al., 2000). It is very necessary for a trainer to engage its audience

during the training session (Phillip seamen et al., 2005). Delivery style means so much in the

Training and Development. It is very difficult for an employee to perform well at the job place

without any pre-training (Thomas N. Garavan, 1997). Trained employees perform well as

compared to untrained employees (Partlow, 1996; Tihanyi et al., 2000; Boudreau et al., 2001). It

is very necessary for any organization to give its employees training to get overall goals of the

organization in a better way (Flynn et al., 1995; Kaynak, 2003; Heras, 2006). Training and

development increase the overall performance of the organization (Shepard, Jon et al., 2003).

Although it is costly to give training to the employees but in the long run it give back more than

it took (Flynn et al., 1995; Kaynak, 2003; Heras, 2006). Every organization should develop its

employees according to the need of that time so that they could compete with their competitors

(Carlos A. Primo Braga, 1995).

 HUMAN RESOURCE MANAGEMENT

This chapter is based on reviewing what other writers and researchers have put forward relating

to training and performance; related ideas and their manner of activities, functions, importance

and the findings. An important part of the Human Resource Management function of great

relevance to the effective use of human resource is training and development. Nowadays, few

persons would argue against the importance of training as the main force to a successful

organization. For performance to be sustained effectively, the contribution of employees should

be optimized to the goals of the organization. Research studies have recognized the importance

of training to be a central role of management. (Jehanzeb & Beshir, 2013) for instance were

conferring that to give others vision and ability to perform is a contribution of an organization’s

manager. The general development towards downsizing, adaptable structures of organizations

and the way of administration moving towards the devolution of power to the workforce, gives

more emphasis to a coaching and support environment. To ensure therefore an adequate supply

of staff, that is both technically and socially competent, and capable in career development,

training becomes a necessity.

Human resource management and training

For any organization to work effectively, it should have materials, cash, supplies, gear, thoughts

concerning great or administrations to offer the people who might use it yields and finally

individuals, which is the human asset, to run the organization. The legitimate administration of

people at work is Human Resource Management, and it has created to be a fundamental action in

numerous associations and is the focus for a wide - running pondering concerning the idea of the

contemporary business connections. One of the significant parts in the coordination and the

executives of work in an organization is the administration of human asset. (Shen, 2004) alluded

to Human Resource Management as including all of the executives exercises and choice, that

impact the connection between an association and its workers which are the HR. For the most

part, the board makes fundamental decisions a large number of days that impact this relationship.

(Shen, 2004).

(McDowall et al.,2010) contends that the affirmation of the significance of training actually has

been strongly affected by the strengthening of contention and the general accomplishment of

associations, as interest in representatives' improvement is widely stressed. They further

contended that inventive enhancements and various leveled change have logically determined a

couple of organizations to the acknowledgment that accomplishments rely upon the abilities and

capacities of their laborers, and this infers huge and steady interest in training and development.

(Beardwell and Holden, 1993), saw that Human Resource Management idea for instance,

obligation to the association and the development in the quality advancement have driven senior

administration gatherings to grasp the expanded significance of preparing, worker improvement

and long - term schooling. An idea of this nature requires cautious preparation, yet a more

accentuation on representative turn of events. To Krietner (1995), regardless of how cautiously

workers are screened, commonly, a hole stays between what the representative does be aware
and the way that they ought to know it. An association subsequently, craving to acquire the

serious edge in its specializations, will require broad work and successful preparation of its

human asset.

Training Purpose, Process and results

Cole (2002), referenced in his book Personnel Human Resource Management, that preparing is a

greater amount of a mastering action to procure better abilities and information expected to play

out an errand. Training is the requirement for a more prominent efficiency and wellbeing in the

activity of explicit hardware or the requirement for a successful deals force, to specify a couple.

To think of the ideal information, abilities and capacities from workers to perform well at their

work side, requires appropriate preparation programs that may in like manner affect employee

inspiration furthermore, responsibility. employees can either construct or break their

organization's standing as well as productivity. In addition, they supervise the vast majority of

the exercises which can impact client satisfaction, the nature of the item and occasion.

Why training

According to G.P. Nunvi (2006), training programs are directed towards maintaining and

improving current job performance while development seeks to improve skills for future jobs.

Considering the progress in the technology, certain jobs become redundant with the replacement

of machines in present days. Further education and competence becomes necessary for those in

current positions and those wishing to be promoted in the future. Expressing an understanding of
 training, Armstrong (1996), emphasized that training should be developed and practiced within

the organization by appreciating learning of theories and approaches, if training is to be well

understood.

Training process

Training in an organization for the most part includes a deliberate methodology, trailed by a

succession of exercises:

1. Needs assessment: The first step in the training process is to assess the need for training the

employees. The need for training could be identified through a diagnosis of present and future

challenges and through a gap between the employee’s actual performance and the standard

performance.

The needs assessment can be studied from two perspectives: Individual and group. The

individual training is designed to enhance the individual’s efficiency when not performing

adequately. And whereas the group training is intended to inculcate the new changes in the

employees due to a change in the organization’s strategy.

2. Deriving Instructional Objectives: Once the needs are identified, the objectives for which the

training is to be conducted are established. The objectives could be based on the gaps seen in the

training programmes conducted earlier and the skill sets developed by the employees.

3. Designing Training Programme: The next step is to design the training programme in line with

the set objectives. Every training programme encompasses certain issues such as: Who are the

trainees? Who are the trainers? What methods are to be used for the training? What will be the
 level of training? etc. Also, the comprehensive action plan is designed that includes the training

content, material, learning theories, instructional design, and the other training requisites.

4. Implementation of the Training Programme: Once the designing of the training programme is

completed, the next step is to put it into the action. The foremost decision that needs to be made

is where the training will be conducted either in-house or outside the organization.

Once it is decided, the time for the training is set along with the trainer who will be conducting

the training session. Also, the trainees are monitored continuously throughout the training

programme to see if it’s effective and is able to retain the employee’s interest.

5. Evaluation of the Training Programme: After the training is done, the employees are asked to

give their feedback on the training session and whether they felt useful or not. Through feedback,

an organization can determine the weak spots if any, and can rectify it in the next session. The

evaluation of the training programme is a must because companies invest huge amounts in these

sessions and must know it’s effectiveness in terms of money.

Thus, every firm follows the series of steps to design an effective training programme that serves

the purpose for which it was intended.

Necessity for learning

Since the goal is to help the learner procure the conduct vital for successful work execution, it

means quite a bit to concoct an unmistakable handle of the manners by which learning
speculations are applied while planning preparing programs. To Leslie (1990), there are for

essential prerequisites for figuring out how to happen.

The main he referenced is motivation. Like the old saying goes, a horse can be led to the river

but cannot be forced to drink from the river., can't be compelled to drink from the waterway.

Relating this to hierarchical training and development, it turns into a significant example for the

trainer. employees will quite often learn in the event that they acknowledge the requirement for

training and are more dedicated to it. For example, assuming their motivation is powerless,

what's more, in the event that they question their capacity to learn, regardless of how well their

training is planned and carried out, its adequacy will be restricted. Flippo (1976), additionally

made notice on the way that, the more profoundly energetic the trainee, the quicker and more

proficient another expertise or information is learned. This suggests that preparing ought to be

connected with something the worker wants. It could be advancement, cash or acknowledgment

just to give some examples. Prompt is the subsequent necessity. From preparing programs, the

student perceives important prompts and partner them with applicable reactions. The third

necessity is reactions. Here, preparing should be promptly trailed by a good, opportune and

predictable support to empower the student feel the answer. (Leslie, 1990). Finally, there's

criticism. The data the student gets demonstrating the nature of the reaction is criticism.

Although the learning necessities are great, they neglect to discuss practice where the learner

effectively take an interest in utilizing the abilities and information gained on the grounds that it

should consider people with various perspectives which once in a while influence preparing

strategies.
Methods of Training

A variety of training methods are used in different organizations today, to train different

individuals. DeCauza et al (1996) explains that the most popular training and development

method used by organizations can be classified as either On-the-job training and Off-the-job

training.

1. On-the-job training As the name goes, on-the-job training (OTJ) is a method of giving

training to employees when they are at work at their working environment. The

purpose of this training is to make the employees get familiar with the normal

working circumstance, i.e. during the training time frame, the workers will get the

direct involvement of using machinery, equipment, devices, materials, and so forth.

Additionally, it helps the employees to figure out how to confront the difficulties that

may occur during the execution of the job. The main idea of this training is learning

by doing where the supervisor or the more experienced employees show the training

how to perform out a specific task. The learners take after the directions of the

supervisor and perform out the task.

This method is highly used by companies to train current and future workers, due to

its simplicity. On-the-job training includes apprenticeship, couching, internship, job

rotation, job instruction and few others

2. Off-the-job training Off-the-job training is another method of training, which is

organized at a site, far from the original work environment for a specific period. The

purpose of this method of training at a place other than the job area is to give a

peaceful domain to the employees where they can focus just on learning. Learning

material is provided to the trainees, for a complete theoretical knowledge. The

trainees can express their perspectives and opinions during these training session.

Additionally, they can investigate new and innovative ideas. Case studies,

conferences, audiovisuals, seminars, simulations, role play and lectures are some

basic systems that the employee needs to experience during, off-the-job training. This

is one of the costly training methods. It includes choice of the place of training,

arrangement of facilities for the employees, hiring experts to impart the training.
A clear comparison chart

Source: Surbhi’s Article October 26, 2015. Key Differences between on and off-the job-

training

COMPARISION BASIS ON THE JOB TRAINING OFF THE JOB TRAINING

Meaning A form of training provided at A form of training outside the

the workplace during actual training.

performance the actual job.

Approach Practical Theoretical

Active participation Yes No

Location At the workplace Out of work place

Principle Learning by performance Learning by acquiring

knowledge

cost Inexpensive Expensive

 Conducted by Experienced employees Professionals and experts

Suitable for Manufacturing firms Non-manufacturing firms

Factors affecting training

There are various factors influencing training extending from environment, supervisors,

lecturers, content of the training and how it is being done. These variables can be expounded and

better understood by discussing them below:

 Individual Factors at whatever point people are included in some sort of activity, or

practice, they generally influence the environment or process they are experiencing. The

same is the situation with employee training. As it is a process of transferring skills and

technology from the expert to the new learner. The main parties are obviously workers

themselves seeking training and the trainer or member of the staff delivering the training.

Authorities organizing training and giving assets to it can be considered a third party, as

they oversee the prearrangement and post quality evaluation of training (Birdi 2005).

 Human Resource Policy This has been illustrated by Haywood and based on the designed

policy by human resource for training programs. As indicated by him an excessive

number of training programs affects the main aim of training, which is skill development,

and conduct change (Haywood 1992).

 Organizational factors Everything tends to be affected by its surrounding and

environment, so too with training organizers. Birdi claimed that the absence of
 managerial support could restrain the impact of creative training. in conducive

environment affects training effectiveness. (Birdi 2005.)

 Other Factor to Fischer and Ronald open mindedness is additionally a factor in training

effectively. It has been claimed that training will be as much effective as the learners and

the instructors are open minded (Fischer 2011). Driskell stated that the kind of training

conducted, training content and training expertise equally affect the results of training.

Achievement depends on the way training has been conducted by the trainer and its

content (Driskell 2011).

Importance of training

Training is an important part of Human Resource Management and Development, to Govil, it is

important for the following reasons:

 Training helps in the recruitment of staffs and ensure a better quality of applicant.

 It eliminates risk, since trained employees can make better and economic use of

materials, and equipment thereby reducing and avoiding waste.

 Training serves as a monitoring factor for employees in an organization.

 It leads to greater efficiency and productivity.

 It increases the loyalty and adaptability of staffs.

 It improves staff’s moral.

Performance appraisal
This is a method used to assess the effectiveness of an employee’s performance by comparing set

goals with outcome. Although performance appraisal is one of the most important task any

manager can carry out, managers admits they have difficulties in adequately handling. It is not

always easy to judge a subordinate’s performance accurately, and its often even more difficult

judging employees in a constructive painless manner. Performance is more concerned with the

organization’s success. For example, from the past years, has the stated objectives being

achieved? Areas of weakness pin-pointed? And the need for training identified? It’s also

necessary to set performance standards, and ensure that the employees receive the training,

incentives required and feedback to avoid performance deficiencies. (Dessler, 2015). Coupled

with its importance, performance appraisal involves the three step Performance Appraisal

Process: 1) setting work standards; (2) assessing the employee’s actual performance to the

standards (usually, it consists of some rating forms); and providing employees with feedback

with the purpose of assisting them reduce performance deficiencies.

Usually, there are five reasons to appraise subordinates’ performance which are;

 Enables the employer to identify promotion candidates, base pay and retention decision

within an organization.

 Appraisals play a key role in employees’ Performance Management Process (a

continuous means of ensuring that each employee’s performance is relevant in terms of

the organization overall goals.

 The appraisal helps the employer and employee develop a plan to correct any

deficiencies, also to reinforce employee’s strength.

 Appraisal gives an opportunity to review the employee’s career plans.

 It helps the supervisor to identify if there is a need for training and the necessary steps to

be taken.
 TYPES OF TRAINING

• Technical Training Depending on the type of job, technical training will be required. Technical

training is a type of training meant to teach the new employee the technological aspects of the

job. In a retail environment, technical training might include teaching someone how to use the

computer system to ring up customers. In a sales position, it might include showing someone

how to use the customer relationship management (CRM) system to find new prospects. In a

consulting business, technical training might be used so the consultant knows how to use the

system to input the number of hours that should be charged to a client. In a restaurant, the server

needs to be trained on how to use the system to process orders. Let’s assume your company has

decided to switch to the newest version of Microsoft Office. This might require some technical

training of the entire company to ensure everyone uses the technology effectively. Technical

training is often performed in-house, but it can also be administered externally.

• Quality Training In a production-focused business, quality training is extremely important.

Quality training refers to familiarizing employees with the means of preventing, detecting, and

eliminating nonequality items, usually in an organization that produces a product. In a world

where quality can set your business apart from competitors, this type of training provides

employees with the knowledge to recognize products that are not up to quality standards and

teaches them what to do in this scenario. Numerous organizations, such as the International

Organization for Standardization (ISO), measure quality based on a number of metrics. This

organization provides the stamp of quality approval for companies producing tangible products.
ISO has developed quality standards for almost every field imaginable, not only considering

product quality but also certifying companies in environmental management quality. ISO9000 is

the set of standards for quality management, while ISO14000 is the set of standards for

environmental management. ISO has developed 18,000 standards over the last 60 years1 . With

the increase in globalization, these international quality standards are more important than ever

for business development. Some companies, like 3M choose to offer ISO training as external

online training, employing companies such as QAI to deliver the training both online and in

classrooms to employees. Training employees on quality standards, including ISO standards, can

give them a competitive advantage. It can result in cost savings in production as well as provide

an edge in marketing of the quality-controlled products. Some quality training can happen in-

house, but organizations such as ISO also perform external training.

• Skills Training Skills training, the third type of training, includes proficiencies needed to

actually perform the job. For example, an administrative assistant might be trained in how to

answer the phone, while a salesperson at Best Buy might be trained in assessment of customer

needs and on how to offer the customer information to make a buying decision. Think of skills

training as the things you actually need to know to perform your job. A cashier needs to know

not only the technology to ring someone up but what to do if something is priced wrong. Most of

the time, skills training is given in-house and can include the use of a mentor. An example of a

type of skills training is from AT&T and Apple (Whitney, 2011), who in summer 2011 asked

their managers to accelerate retail employee training on the iPhone 5, which was released to

market in the fall.

• Soft Skills Training Our fourth type of training is called soft skills training. Soft skills refer to

personality traits, social graces, communication, and personal habits that are used to characterize

relationships with other people. Soft skills might include how to answer the phone or how to be

friendly and welcoming to customers. It could include sexual harassment training and ethics

training. In some jobs, necessary soft skills might include how to motivate others, maintain small

talk, and establish rapport. In a retail or restaurant environment, soft skills are used in every

interaction with customers and are a key component of the customer experience. In fact,

according to a Computerworld magazine survey, executives say there is an increasing need for

people who have not only the skills and technical skills to do a job but also the necessary soft

skills, such as strong listening and communication abilities (Hoffman, 2007). Many problems in

organizations are due to a lack of soft skills, or interpersonal skills, not by problems with the

business itself. As a result, HR and managers should work together to strengthen these employee

skills. Soft skills training can be administered either in-house or externally.

• Professional Training and Legal Training In some jobs, professional training must be done on

an ongoing basis. Professional training is a type of training required to be up to date in one’s own

professional field. For example, tax laws change often, and as a result, an accountant for H&R

Block must receive yearly professional training on new tax codes (Silkey, 2010). Lawyers need

professional training as laws change. A personal fitness trainer will undergo yearly certifications

to stay up to date in new fitness and nutrition information. Some organizations have paid a high

cost for not properly training their employees on the laws relating to their industry. In 2011,

Massachusetts General Hospital paid over $1 million in fines related to privacy policies that were

not followed (Donnelly, 2011). As a result, the organization has agreed to develop training for

workers on medical privacy. The fines could have been prevented if the organization had
provided the proper training to begin with. Other types of legal training might include sexual

harassment law training and discrimination law training.

 CONCLUSION

Training and development is considered as a strategy for growth in every organization. It is

adopted by the organization to fill the gap between skills and future opportunities. These training

programs definitely enhance skills, improve efficiency, and productivity and growth

opportunities for employees. Employee training and development includes any activity that helps

employees acquire new, or improve existing, knowledge or skills.

Training is a formal process by which talent development professionals help individuals

improve performance at work. Development is the acquisition of knowledge, skill, or attitude

that prepares people for new directions or responsibilities.

 REFERENCE

1)Wikipedia.com

2)HR Glossary

3)Google.com
 SUGGESTION

1.Make learning more flexible and clear.

2.Helps one to understand their practical job in details.

3.Gives a better opportunity to clear our vision.

4.It is a core part for every organization's growth and also for personal development.

5.One can learn, explore and gain more knowledge and skills about the job.