PREFACE

Project undertaken by student helps them to gain good practical knowledge in the concern field. This
CONTRIBUTION OF HUMAN RESOURCE DEVELOPMENT TOWARDS ORGANIZATIONAL SUCCESS in ITC LIMITED Lucknow”

project

entitled

Helped me to have a better understanding of “HRM”, the staff structure, distribution process and responsibilities of the employees of ITC. . I wish that the experience and learning gained from this project would help me to enhance my professional career in future.

2011-12

ITC Limited Lucknow

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AKNOWLEDGEMENT “What is ‘Today’ becomes ‘Yesterday’ and what is ‘Tomorrow’ becomes ‘Today’. Give your best today, be it in your tiniest of duty Performance, in practicing values and ethics, in fulfilling all small or Big commitments. The best will come to you tomorrow”. This is to acknowledgement my sincere thanks and gratitude to all those concerned, who have contributed of in contribution in this project I owe my deepest gratitude. To begin with, I wish to acknowledge and express my gratitude to: Mrs. ASTHA (HR HEAD, ITC) who gave me the opportunity to work in this organization. A mammoth project of this nature calls for intellectual nourishment, professional help, and encouragement from many quarters. Doing summer training from the esteemed organization ITC, Lucknow has given me a chance to apply all theoretical inputs to real-life situations. Overall it was an entirely a learning experience for me. I am grateful to my project incharge Ms Koyal (HR Manager ITC) for his continuous assistance and inspiration. The knowledge, advice, support, suggestion, helpful, tips given to me by him helped me to successfully complete this project. I am also thankful to the staff members of ITC for giving me useful information whenever I approached them. At, last I am deeply grateful to my parents and friends who have given every help and moral support and their constant advice, which enabled me to pursue my academician. Jyoti Jaiswal SUMMER TRAINEE, KNMIET MODINAGAR CONTENT
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Preface Acknowledgement Content Objective Executive Summary Introduction to Subject Chairman Speaks ITC History & Evaluation ITC Profile Introduction to Managing Strategic change in HRM Recruitment & Selection ITC Organization Structure Distribution of Staff at ITC HQ Management of People in ITC Limited Research Methodology Observation Recommendation Bibliography Anexure
ITC Limited Lucknow 3

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To study the Recruitment & Selection Process.OBJECTIVE The aim of our study is to comprehend and analyze “The Contribution of Human Resource Development towards organizational success”. To study the distribution pattern employee. namely. To study the merchandising HRD system in ITC. 2011-12 ITC Limited Lucknow 4 .& Carrier Development contributes towards the success of these organizations. Recruitment & Selection . which we done on OBC. Compensation . Our objective is to make a comparative study on the above mentioned parameters and to come up with suitable recommendations. Our objective is to find out whether the three sub systems of HRD.     To understand the Organizational Structure.

First of all we have designed a questionnaire separately for HRD & Non . The interviews which we had conducted are very effective as we managed to gather all the information required for our analysis from HR as well as Non HR departments.HRD personnel. After designing this questionnaire we found that it is not enough to completely know the details in their organization. Through which we have arrived at a conclusion as mentioned below: 2011-12 ITC Limited Lucknow 5 . To make this project the methodology which we have adopted is as follows. Our emphasis was mainly on three broad areas. had been duly analyzed by us.EXECUTIVE SUMMERY This is a project which gives the comprehensive idea how currently the Recruitment & Selection. For that we need a comprehensive formal & informal interview with the organization personnel specially the HRD manager.& Carrier Development in organizations like OBC are contributing towards the organizational success. & Carrier Development. All the details which were collected by us. Compensation. Compensation . Recruitment & Selection.

” 2011-12 ITC Limited Lucknow 6 . field facility. “HRD is a set of inter-related activities. directorate.In our recommendation chapter. service etc. by which human potentialities are assessed.) to meet its performance objectives and the delivery of high quality products/services. We hope this project will be beneficial for this organization if they consider the areas which we pointed out in our research. division. we have suggested some valuable recommendations which can enhance more effectively these three sub systems in this organizations. selectively upgraded and appropriately deployed for achievement of envisioned goals which foster human dignity. INTRODUCTION TO THE TOPIC/SUBJECT Organizational Success The extent to which the employee demonstrates success in setting priorities and accomplishing work that directly impacts the ability of the organization (which may be at any level: branch.

in the process creating growing value for the shareholders.C. Deveshwar calls this source of inspiration "a commitment beyond the market". 2011-12 ITC Limited Lucknow 7 . Chairman Y. It is ITC's Endeavour to continuously explore opportunities for growth by synergizing and blending its multiple core competencies to create new epicentres of growth. The employees of ITC are inspired by the vision of growing ITC into one of India's premier institutions and are willing to go the extra mile to generate value for the economy.CHAIRMAN SPEECH As one of India's most valuable and respected corporations. ITC is widely perceived to be dedicatedly nation-oriented.

The Company now stands rechristened 'ITC Limited'. Information Technology. Paperboards & Specialty Papers. This decision of the Company was historic in more ways than one. Kolkata.C. ITC's Packaging & Printing Business Division was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. for the sum of Rs 310. It was to mark the beginning of a long and eventful journey into India's future. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses .Cigarettes & Tobacco. The Company's headquarter building. Lifestyle Retailing and Greeting Gifting & Stationery . The Company celebrated its 16th birthday on August 24. Chowringhee. Limited in 1974. (now renamed J. Agri-Exports. which came up on that plot of land two years later. by purchasing the plot of land situated at 37. 1926.HISTORY AND EVOLUTION ITC was incorporated on August 24.T. was the centre of the Company's existence. would go on to become one of Kolkata's most venerated landmarks. 1910 under the name of 'Imperial Tobacco Company of India Limited'. Nehru Road) Kolkata. 2011-12 ITC Limited Lucknow 8 . The Company's ownership progressively indianised. 'Virginia House'. It is today India's most sophisticated packaging house. A leased office on Radha Bazar Lane.000. Its beginnings were humble. Packaging. the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses.the full stops in the Company's name were removed effective September 18. Hotels. Foods.L. 2001. and the name of the Company was changed to I.

Ltd (BIPCO). ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Tamil Nadu. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. It is directly involved in education. In 2004. create tourism infrastructure and generate large scale direct and indirect employment. In 1979. near Coimbatore. Bhadrachalam Paperboards amalgamated with the Company effective March 13. its shares have been held by ITC. an economically backward area in the state of Andhra Pradesh. a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. In 1985. In November 2002. To 2011-12 ITC Limited Lucknow 9 . 2002 and became a Division of the Company. quality and manufacturing processes are comparable to the best in the world. ITC acquired Tribeni Tissues Limited. It has also made an immense contribution to the development of Sarapaka. ITC's paperboards' technology. ITC set up Surya Tobacco Co. Since then ITC's Hotels business has grown to occupy a position of leadership. In August 2002. it over 70 owned and managed properties spread across India. Bhadrachalam Paperboards Division. environmental protection and community development. In 1990. in Nepal as an Indo-Nepal and British joint venture. this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. The merged entity was named the Tribeni Tissues Division (TTD). ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited. ITC chose the hotels business for its potential to earn high levels of foreign exchange. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range.In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. which today has become the market leader in India. Since inception. Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). British American Tobacco and various independent shareholders in Nepal. productivity.

Now it extends to 9 states covering over 3. leveraging its agri-sourcing competency. The Division is today one of India's largest exporters. Also in 1990.5 million farmers. ITC's first rural mall. Maharashtra and Uttar Pradesh.harness strategic and operational synergies. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. 2011-12 ITC Limited Lucknow 10 . ITC set up the International Business Division (IBD) for export of agri-commodities. christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. The year 2006 witnessed the ramping up of the Company's rural retailing network with 17 'Choupal Saagars' being operational in three states of Madhya Pradesh.

In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. Paperboards & Specialty Papers. ITC has a diversified presence in Cigarettes. it is rapidly gaining market share even in its nascent businesses of Branded Apparel. Packaged Foods & Confectionery. in a study conducted by Brand Finance and published by the Economic Times. Hotels. Packaging and Agri-Exports. among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part. Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine. Agri-Business. Chairman Y. Greeting Cards and other FMCG products. ITC is widely perceived to be dedicatedly nation-oriented. ITC also ranks among India's top 10 `Most Valuable (Company) Brands'. Branded Apparel. Greeting Cards and Packaged Foods & Confectionery. C. As one of India's most valuable and respected corporations.COMPANY’S PROFILE ITC is one of India’s foremost private sector companies with a market capitalization of around US $ 18 billion and a turnover of US $4." 2011-12 ITC Limited Lucknow 11 . ITC is rated among the World's Best Big Companies. Packaging. Deveshwar calls this source of inspiration "a commitment beyond the market". Paperboards. Hotels.75 billion. While ITC is an outstanding market leader in its traditional businesses of Cigarettes.

is aggressively pursuing emerging opportunities in providing endto-end IT solutions.000 shareholders. For the nation. ITC's production facilities and hotels have won numerous national and international awards for quality. This transformational strategy.000 people at more than 60 locations across India. ITC is one of the country's biggest foreign exchange earners (US $ 2. significantly enhancing the Company's marketing reach. fulfill the aspirations of its stakeholders and meet societal expectations. For the Shareholder. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. which has already become the subject matter of a case study at Harvard Business School.72. including e-enabled services and business process outsourcing. ITC InfoTech India Limited. ITC employs over 21. is expected to progressively create for ITC a huge rural distribution infrastructure." 2011-12 ITC Limited Lucknow 12 . safety and environment management systems.8 billion in the last decade). ITC was the first company in India to voluntarily seek a corporate governance rating. productivity.ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC's wholly owned Information Technology subsidiary. The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3.

Kolkata ITC Maurya. Delhi Sheraton Chola.ITC BUSINESS The main businesses of ITC are  FMCG  Cigarettes  Life style retailing  Greeting cards  Foods  Safety matches  Agarbatti  Hotels            ITC Sonar. Delhi ITC Kakatiya. Chennai Sheraton Rajputana. Jaipur ITC Limited Lucknow 13 2011-12 . Chennai ITC Mughal. Mumbai ITC Grand. Central ITC Windsor. Agra Sheraton New. Hyderabad ITC Maratha. Bangalore ITC Park Sheraton.

These are: 2011-12 ITC Limited Lucknow 14 . Staples and Snack Foods segments. Greeting Cards and Packaged Foods. Packaging and Agri-Exports.exports  Leaf tobacco  E . The Foods business is represented in four categories in the market. WelcomHeritage. The packaged foods business provides ITC an excellent opportunity to strategically leverage its time-tested and competitive strengths in brand management. New Delhi  Paper board and packaging  Paper board and specialty papers  Packaging  Agri–businesses  Agri . it is rapidly gaining market share even in its nascent businesses of Branded Apparel. cuisine development in its hotels business. Hotels.Choupal As part of its strategic initiative to create multiple drivers of growth in the FMCG sector ITC entered in the branded packaged Foods business in August 2001 with the launch of the Kitchens of India brand of premium ready-to-eat gourmet cuisines. The Company broadened this foray with an array of brand launches in the Confectionery. Paperboards. While ITC is an outstanding market leader in its traditional businesses of Cigarettes.

ITC is a pioneer in creating carton packaging for its premium ‘Atta’. ‘Kitchens of India’ brings exquisite gourmet Indian cuisine to the Indian and global consumer. The Company is also a trend-setter in offering the 2011-12 ITC Limited Lucknow 15 . in the Consumer Pack Category. This is one of the most prestigious international awards for Packaging. ‘Aashirvaad Select’ (2 kg pack) recently won the World Star Award for Excellence in Packaging. epitomizing the culinary expertise of the Master Chefs from ITC – WELCOME GROUPS of hotels. ITC constantly aims to delight the consumer with the excellent packaging of its food products. Its design depicts the farming activity in India’s rural heartland through a Madhubhani painting. The product has now been launched on an all-India level. The ‘Aashirvaad’ package is pet-poly.• • • • Ready-To-Eat Foods Staples Confectionery Snack Foods Ready-To-Eat Foods ITC today offers a range of Ready-To-Eat products under the ‘Kitchens of India’ brand. Staples ITC entered the branded Atta (wheat flour) market with the launch of ‘Aashirvaad Atta' in Jaipur and Chandigarh in May 2002.

facility of vacuum sealing in the 5kg premium ‘Atta’ pack. 2011-12 ITC Limited Lucknow 16 . Safety matches As part of its strategic initiative to create multiple drivers of growth in the FMCG sector. Mangaldeep. ‘Mint-O’ is the first mint in India. has launched Aashirvaad Salt to offer consumers yet another quality product. following the success of Aashirvaad Atta. ITC's brands like Wimco. ‘Mint-O’ is now available in all major markets. The product is available in two sizes – rolls of 20s and 6s. ITC has commenced marketing safety matches sourced from the small-scale sector. lime and mint. ‘Candy man’ is currently available in two innovative flavors – ‘Wild Banana’ and ‘Mango Delite’. These matches are available in unique designs and with innovative value added features. Confectionery ITC has launched two products in the confectionery segment – ‘Mint-O’ (compressed mint) and 'Candy man' (hard-boiled sugar candy). The product focuses on essential qualities such as free flow and iodization. apart from purity. ITC. Homelight and Aim have already become popular. which is available in three flavors – orange. Vaxlit. Both these innovations ensure and enhance the freshness of the product. The product seeks to provide the thrill of adventure and excitement. ‘Mint-O’ offers the discerning consumer a value-added mint that captures the spirit of youth.

Nivedan and 2011-12 ITC Limited Lucknow 17 .Snack Foods ITC entered the Snack Foods market with the launch of an innovative product under the brand name ‘I’. This is a unique snack which provides an interesting ‘Taste and Flavour’ experience. Agarbatti ITC has commenced marketing agarbattis (incense sticks) sourced from the small-scale sector. This business leverages the core strengths of ITC in marketing and distribution ITC has launched a slew of brands like Spriha.

ITC PRODUCTS……. These brands are available across a range of fragrances like Rose. Sandalwood. Cigarette Insignia India Kings B&H 555 Classic Gold flake Navy cut Silkut Capstan Star Foods Aashirwaad Ready meals Cooking Paste Atta Salt Sun feast Biscuit Glucose Cream biscuit Dark fantasy Snacky Golden bakery Marie Pasta treat Kitchens India Ready to eat Curry paste Conserve Confectionery Minto fresh Candyman Minto-roll Bingo snacks of Life style Wills lifestyle Wills sports Wills club Wills classic John player Miss Player Stationary Paper Kraft Classmate Expressions Safety matches Ikno Aim Homelites Mangaldeep Agarbattis Mangaldeep Spriha 2011-12 ITC Limited Lucknow 18 . Jasmine. Sambrani and Nagchampa.Ashageet.

2007 ITC had launched new range of Personal Care products Fiama Di Wills Shower Gels and Superia soaps and shampoos. Aqua Balance. Silky Strong which is enriched with oils of Macadamia Nut and Babassu. This is in addition to the Fiama Di Wills range launched earlier in the form of Everyday Mild. Expanding its range of personal care products. ITC had also launched its fourth shampoo variant.Personal Care Essenza di wills Fiama di Wills Soap Soap Shampoo Shower Gel Perfume Soap Soap Shampoo Soap Shampoo Vivel di Wills Vivel Superia On Oct 15. 2011-12 ITC Limited Lucknow 19 . ITC had presented yet another world class range of products for the Indian consumer through its new range of Fiama Di Wills Shower Gels. and Volume Boost . and following the successful launch of Fiama Di Wills Shampoos.

which helps enhance retention of skin proteins to create a beautiful look. 2007 ITC had launched Fiama Di Wills Soaps. Superia offers a range of four soap variants and two shampoo variants with a range benefit of Glowing skin and Shiny hair.Continuing with its tradition of offering a superior product and brand experience to the modern Indian consumer. Fiama Di Wills Skin Sense Soft Green is a gentle caring soap. Each of the variants have been designed to deliver specific benefits to the various consumer needs. Superia soaps & shampoos are an outcome of 3 years of extensive product development by ITC scientists at the ITC Research and Development Centre. ITC had also launched the Superia range of soaps and shampoos in select markets. ITC had introduced Fiama Di Wills Soaps which offer the benefit of gentle and effective care by combining elements of nature and science. The soap packaging has been developed by a leading European design firm and the fragrance has been developed by an international house in France. On Dec 20. 2011-12 ITC Limited Lucknow 20 . Following the successful launch of Fiama Di Wills Shampoos and Shower Gels.

The products are enriched with Actipro N which has Nourishing. yet another world class range of soaps for the Indian consumer. Fiama Di Wills and Superia.On Feb 14. The unique carton pack has been developed by ITC’s design team to provide a novel consumer experience. Protecting and Hydrating Ingredients. thereby enhancing beauty and confidence. Vivel Di Wills offers a unique value proposition of bringing together ingredients that provide the benefits of Nourishment. 2011-12 ITC Limited Lucknow 21 .Essenza Di Wills. All product formulations have been scientifically developed at the ITC R&D Centre after 4 years of extensive research. Expanding its portfolio of Personal Care products. This follows the success of ITC’s previous launches. Protection and Hydration through a single product. ITC launched Vivel Di Wills & Vivel. These unique features provide the discerning consumer complete care. The exquisite fragrances for the various products have been developed by leading international fragrance houses. Backed by consumer insights. 2008 ITC had expanded their Personal Care product range.

There is a powerful influence of the paradigm and cultural web on the strategy being followed in the organization.INTRODUCTION TO MANAGING STRATEGIC CHANGE HR Deppt. Strategic change is an extension of the planning process. designing structures and control systems appropriate to the strategy and using them as mechanisms of change. It also means that there should be commitment in the people. and needs of organizational change should not only be in terms of behavioral change but also in terms of everyday aspects of change. This means that belief and assumptions that they hold and processes in their organizational lives is important. Ultimately the success of strategic change in the organization depends on how people change their behavior. putting the resources required and planning timing and sequencing of change. Managers should balance different approaches to manage strategic change according to the situations they face. putting them as mechanisms of change. The logic of the strategy right and then persuading people of the logic. Managing strategic change is context dependant. Organisation should be learning organizations responding to the changing environment. 2011-12 ITC Limited Lucknow 22 .

or bounded by.g. but rather they adapt the existing paradigm and current ways of operating. Managers may not perceive major strategic changes. so that the change is efficient and likely to win their commitment. Fine-tuning and reactive adaptation may therefore results in incremental change. routines. the existing paradigm and routines of the organization even when the pressures might suggest the need for more fundamental change.TYPES OF STRATEGIC CHANGE Strategy development in organizations is incremental with occasional more transformational changes . beliefs of those in the organizations. Such 2011-12 ITC Limited Lucknow 23 . With the incremental change might lay the dangers of strategic drift because change is based on. There when transformational change is needed. it entails a change in taken for granted assumptions and “the way of doing things around here”. either because incremental change has been adequate or because the external pressure for change are extreme. Transformational change means change which cannot be handled within the existing paradigm and organizational routines. The organization should be proactive and keep in touch with the environment and anticipate the needs to change which can be achieved through the fine-tuning current ways of organizations react to the external competition. if sales decline or takeover threatens the continued existence of a firm.It is beneficial for the organizations to change incrementally because this way it can build on skills. e.

or if external stakeholders e. This is often a daunting managerial challenge. The model shows that change is complex due to organizational immune systems. The 7-S Model The 7 S model was developed in the late 1970’s by consultants at McKinsey and company who were trying to help managers address several of the difficulties of change. and to be effective a change effort must address many of these issues simultaneously. and the many interconnected variables involved.transformational change may also come about as a result of either reactive or proactive processes.g. difficult paradoxes. They may be then in position of planned transformational change. Such a position may be reached if other changes in the organization’s environment are so evidently significant or severe that the organization is forced into such a transformational change. The managers anticipate the need for transformational change. If strategic drift has occurred has led to deteriorating performance or an uncompetitive position in its market. management may be in a forced transformational position. perhaps through the sought of analytic techniques. Structure Strategy Shared values Systems 2011-12 ITC Limited Lucknow 24 . major stakeholders are not happy with the current strategy. which may provide them with more time in which to achieve if others in the organization are resistant to it.

Staff: What companies do to foster the process of developing managers and shaping the basic values of the management team. Organisational dimensions focus inward on areas such as 2011-12 ITC Limited Lucknow 25 . Model A Egan introduced Model A for assessing and designing excellence into a system. He differentiates between business and organisation. Information systems. Shared values: The values that go beyond. manufacturing processes. It is more important how management behaves than what management says. but usually include.g. Structure: The organization chart and associated information that shows who reports to whom and how tasks are both integrated and divided up. quality control systems and performance measurement systems) Style: What managers consider being important by the way they collectively spend their time and attention and how they use symbolic behavior.Skills Staff Style Strategy: A set of actions aimed at gaining a sustainable advantage over competition. systems in the external environment. Business dimensions have an outward focus and emphasize areas such as mission. Systems: The processes and flows that show how an organization operates on a daily basis(e. statement of goals and objective in determining a firm’s destiny. markets. These values are shared by most of the people in the organization. customers. Skills: Those dominant attributes or capabilities that are possessed by an organisation. capital budgeting systems.

economic and social trends.  Business philosophy: An integrated set of values and policy needs to be formulated to govern the conduct of business. Model A’s 4 basic areas are: (a) Business dimensions: it focuses on the exploration and establishment of markets and the delivery of quality products or services to clients or customers.  Mission: A business mission together with people mission should be developed.  Business environment: Competition. and customers needs and wants within these markets need to be explored.  Strategic plan: All these elements need to be pulled together into a strategic plan that establishes the long-term direction and goals of the system.  Major business categories: The major categories of products or services to be delivered to customers need to be determined.organisation structure . customers and clients: markets need to be identified. 1. 2011-12 ITC Limited Lucknow 26 . new markets. should be scanned periodically for both threats and opportunities. human resources and the organisation processes used to engage in business. Strategic business elements: they provide purpose and direction to the organisation. emerging technology etc.  Basic functioning: The system needs to be established on a firm’s financial foundation. They include the following:  Markets. There are both operational and strategic business dimensions.

2. and the organisation should serve the business. marketed and delivered. (b) Organisational dimensions: It is the way in which a system structures itself and pulls together its human resources in order to deliver business outcomes. manufactured.  Work programs: Step by step work programs that insure efficient production and delivery of high quality products and services need to be developed. 2011-12 ITC Limited Lucknow 27 . It includes the structure of the organisation-functional units and subunits-and the deployment and utilization of human resources within these units. The business should drive the organisation.  Unit performance plan: these plans sets year-long operational priorities for each unit and links its operations to the overall strategy of the organisation. This may include the following:  Structure and division of labour  Competence  Teamwork  Communication  Reward system  Individual performance plan. Operational business elements: They are a part of the day-to-day business of the organisation and include the following:  Products and services: that meet the needs and wants of the customers have to be designed.  Material resources: efficient programs for choosing and using the material resources to be used in work programs need to be developed.

Managers are the managers of process and managers of people. (d) Managing the shadow side of organisation: the shadow side includes the rational factors that affect both business and organisational dimensions of the system.  Individual differences: The differences between people have to be addressed and managed. rather on what he or she accomplishes. Model A emphasizes the importance of developing a “culture of feedback” within the system. Effective leadership is not predicated in the traits of the leader but. Effective managers coordinate and facilitate the business and organisational elements of model A and make sure things happen. Leadership means developing vision. Internal cliques and friendships sometimes hinder the business of the system. Egan is explicit in stating that wise managers know how to deal with the following “shadow side” elements:  The natural messiness of the organisation: Wise managers know the looseness of the system and how to work with it. institutions and agencies need both effective management and ongoing leadership if the above has to happen. turning visions into workable programs and communicating the programs in the manner that generates excitement and commitment that creates an environment of problem solving and learning. They understand not just the formal system but the informal system as well and know when to intervene and when to leave alone. The ability to manage the shadow side often determines whether a particular manager is successful or not. mediocre and excellent. Managers who are leaders continually pursue incremental change.  The organisation as a social system: Organizations are social systems with accompanying beliefs and drawbacks.(c) Management and leadership: Companies. 2011-12 ITC Limited Lucknow 28 .

It consists of :  STORIES  Rivalry/competition within organization  Lane rangers  Working hard  Fun place to work  Salary levels  SYMBOLS  Interaction styles  Having a office  Conferences in prestigious locations  Open and tidy work areas  Consultants in office  RITUALS AND ROUTINES  Consultants working in close coordination with clients  Induction process  Memos issued 2011-12 ITC Limited Lucknow 29 .  Organisational culture: Organisation needs to develop its own culture and subculture. CULTURAL WEB This is a useful way of considering forces for and against change. The organisation as a political system: Wise managers understand and manage the politics of the system at the service of system enhancing agendas. This culture either enhances or inhibits the system’s effectiveness.

 No of meeting held  Impromptu meetings and gatherings  Information flows within and across departments  Communication systems in the organization  PARADIGM  Core business  Client focus  Individualism and autonomy  High expertise in HR policies  Team orientation  CONTROL  Meeting billing /selling targets  Team targets  Team incentives  Meeting quality objectives  ORGANISATION  Matrix structure of the organization  Responsiveness to the clients  Accountabilities  Networks existing in the organization  POWER 2011-12 ITC Limited Lucknow 30 .

Dale S.. Recruitment precedes the selection process.” recruitment refers to the attempt of getting interested applications & providing a pool of prospective employees so that the management can select the right person for the right job from this pool. It involves the creation of a pool of available labour upon whom the organization can draw when it needs additional employees.e. Accessibility to clients  Expertise  Interpersonal networks RECRUITMENT & SELECTION MEANING OF RECRUITMENT The process of identification of different sources of personnel is known as recruitment. i. Flippo “recruitment is the process of searching for candidates for employment & stimulating them to apply for jobs in the organization”. It is a linking activity that brings together those offering jobs & those seeking jobs. According to Edwin B. 2011-12 ITC Limited Lucknow 31 . Beach observed. selection of right candidates for various positions in the organization. “recruitment is the development & maintenance of adequate manpower resources.

The employees already working the organization may be more suitable for higher jobs than those recruited from outside. one department to another or from one shift to another. Transfer is good source of filling vacancies with employees from overstaffed departments or shifts. Internal source is one of the important sources of recruitment. At the time of transfer.Recruitment is a positive process as it attracts suitable applicants to apply for available jobs. it should be ensured that the 2011-12 ITC Limited Lucknow 32 . The various sources of recruitment may be grouped into the following two categories: 1. The process of recruitment: (і) Identifies the different sources of labour supply (іі) Assesses their validity (ііі) Chooses the most suitable sources or sources (іv) Invites applications from the prospective candidates for the vacant jobs. Internal sources are discussed as follows: Transfers. External sources (recruitment from outside) INTERNAL SOURCES. Internal sources (recruitment from within the enterprise) 2. SOURCES OF RECRUITMENT. The present employees may help in the recruitment of new persons also. It involves the shifting of an employee from one job to another.

Industrial peace prevails in the enterprise because of promotional avenues. Advantages of Internal Sources Filling vacancies in higher jobs from within the organization or through internal transfers has the following merits: Employees are motivated to improve their performance. Filling vacancies in higher jobs from within the organizations has the benefit of motivating the existing employees. It has a great psychological impact over the employees because a promotion at the higher level may lead to a chain of promotions at lower levels in the organization. Filling of jobs internally is cheaper as compared of getting candidates from external sources. transfer does not involve any drastic change in the responsibilities. Transfers or job rotations are also used for training of employees in learning different jobs.employee to be transferred to another job is capable of performing it. facilities. carrying higher responsibilities. status & pay. Promotions. It leads to shifting an employee to a higher position. Morale of the employees is increased. In fact. Many companies follow the practice of filling higher jobs by promoting employees who are considered fit for such positions. pay & status of the employee. 2011-12 ITC Limited Lucknow 33 .

Advertisement is the best method of recruiting persons for higher & experienced jobs. Transfers or job rotation is a tool of training the employees to prepare them to higher jobs. The advertisements are given in local or national press. EXTERNAL SOURCES Every enterprise has to tap external sources for various positions. This motivates the employees to improve their performance through learning & practice. Unemployed persons get themselves registered with these exchanges. The vacancies may be notified with the 2011-12 ITC Limited Lucknow 34 . Running enterprises have to recruit employees from outside for filling the positions whose applications cannot be met by the present employees. Transfer has the benefit of shifting workforce from the surplus departments to those where there is shortage of staff. Employment Exchanges. Management gets a wider range of candidates for selection.A promotion at higher level may lead to a chain of promotions at lower levels in the organization. newspapers & magazines. & for meeting the additional requirements of manpower. The requirements of jobs are given in the advertisement. Employment exchanges run by government are also a good source of recruitment. The following external sources of recruitment are commonly used by the big enterprises: Advertisement. trade or professional journals. The prospective candidates evaluate themselves against the requirements of jobs before sending their applications.

The employees maintain close liaisons with universities & technical & other educational institutions. semi-skilled.exchanges. etc. These jobs require certain amount of technical & educational qualifications. They specialize in middle level & top level executive placements. engineers. also help their members to get suitable placements in industrial organizations. They maintain data bank of persons with different qualifications & skills & even advertise the jobs on behalf their clients to recruit right type of personnel. Educational Institutions or Campus Recruitments The jobs in trade & industry are becoming technical & complex. The students are spotted during the course of their studies. whenever there is need. 2011-12 ITC Limited Lucknow 35 . employers with good reputation get more & unsolicited applications. These days. Junior level executives or managerial trainees may be recruited in this way. professional & managerial personnel. Exchanges are a suitable source of recruitment for filling unskilled. The job – seekers & job givers are brought into contact by the employment exchanges. by post or in person. Management Consultants: management consultancy firms help the organizations to recruit technical. professional bodies of accountants. and operative posts. If an opening is there or is likely to be there then these persons are considered for such jobs. Generally. skilled. Unsolicited Applications persons in search of employment may contact employers through telephone. Personnel department may maintain a record of unsolicited applications. The exchange supplies a list of candidates fulfilling required qualifications.

Labour Contractors: it is quite common to engage contractors for the supply of labour. contractors or jobbers are the best source of getting them. 2011-12 ITC Limited Lucknow 36 . These persons are appointed for short periods only. The contractors maintain regular contracts with workers at their places & also bring them to the cities at their own expense. They need not be paid retrenchment or lay off allowance. Some organizations have agreements with the trade unions to give preference to blood relations of existing or retired employees if their qualifications & experience are suited to fill the vacant jobs. In fact many employers prefer to take such persons because something about their background is known.When jobs suitable for those persons are available those are considered for employment. Recommendations: Applicants introduced by friends & relatives may prove to be a good source of recruitment. when workers are required for short periods & are hired without going through the full procedure of selection etc. This will avoid following a regular procedure of selection. Casual Callers: management may appoint persons who casually call on them for meeting short-term demands. This method of recruitment is economical because management does not incur a liability in pensions. insurance & fringe benefits.

The management has a wider choice while selecting the people for employment.Merits of External Sources The merits of external sources of recruitment are as under Qualified Personnel. This will improve the overall working of the enterprise. a large number of applicants from outside the organization apply. They will work harder to show better performance. Competitive Spirit. By using external sources of recruitment. The insiders may have limited talents. External sources facilitate infusion of fresh blood with new ideas into the enterprise. If a company can tap external sources. When vacancies are advertised widely. 2011-12 ITC Limited Lucknow 37 . Wider Choice. Fresh Talent. the management can make qualified & trained people to apply for vacant jobs in the organization. the existing staff will have to compete with the outsiders.

\ ITC Organisation 2011-12 ITC Limited Lucknow 38 .

List: 20/11/2004 Staff Positions: distribution of all staff resident in Geneva including permanent 2011-12 ITC Limited Lucknow 39 .Distribution of all Staff at ITC Headquarter OED: OFFICE OF THE EXECUTIVE DIRECTOR 24 DO :DEPARTMENT OF OPERATIONS 242 DTCC: Division of Technical Cooperation and Coordination 75 DTCC/OD :Office of Director 4 DTCC/OIP: Office for Interregional Programmes 24 DTCC/OA: Office for Africa 20 DTCC/OAPLAC: Office for Asia-Pacific. Europe and the Commonwealth 10 DPMD: Division of Product and Market Development 85 DPMD/OD: Office of Director 3 DPMD/MAS: Market Analysis Services 36 DPMD/MDS: Market Development Services 23 DPMD/TIS: Trade Information Services 16 DPMD/TSS: Trade in Services Section 7 DTSS: Division of Trade Support Services 82 DTSS/OD: Office of Director 3 DTSS/BAS: Business Advisory Services 38 DTSS/EMDS: Enterprise Management Development Section 20 DTSS/IPSM: International Purchasing and Supply Management 16 DTSS/ETDU: E–Trade Development Unit 5 DPS: Division of Program Support 64 DPS/OD: Office of Director 2 DPS/GSPS: General Services and Publications Section 24 DPS/HRS: Human Resources Section 14 DPS/ITSS: Information Technology Services Section 13 DPS/FMS: Financial Management Section 11 TOTAL 229 Source: ITC Intranet . Latin America and the Caribbean 17 DTCC/OASEC: Office for Arab States.

with lots of people working on their own “pet projects” and having their own areas of responsibility and with few constraints from a strategic management system impinging on them.” There are inevitably some dangers here: • This rather “rosy” view of HRM in ITC. In ITC this pressure is not formally recognized and therefore not managed. At the end of the year. Management of People in ITC In recent years ITC management has successfully managed to start to change the culture of the organization away from a bureaucratic mentality and towards a service minded. This is a long-term process that requires careful management. innovation based culture. Furthermore. whilst satisfying to the individuals. ITC is a small organization. some individuals are being overloaded and this has increased focus on resource allocation and mobilization within the organization. This is related to a pride in the organization created by the development by the top management level of increased levels of visibility for ITC and the promotion of its role in the global context of trade and development. professional and motivated staff. which is shared by top management. consultants and interns. and requires skilful and balanced management. the Annual 2011-12 ITC Limited Lucknow 40 .staff. Corporate services will have to be developed not only for internal purposes. contract staff. is not reflected throughout the system and morale manifestly declines at the lower levels. has any direct relationship to the ITC targets or the overall ITC mission. Attitudes to time off in lieu of extra hours worked varies between managers. • It is not obvious that all the work. many of the staff is motivated to carry out their view of their role with individual job satisfaction. Hence. overtime is not feasible (since the requirement to approve in advance doesn’t fit work needs). • Staff stress towards the end of each year is common in many organizations and needs to be carefully managed. Furthermore. Our overall conclusions are much as those of the OIOS Report (2004) “ITC provides a supporting working environment for its generally well qualified. but also for the sake of improving customers’ (beneficiary) services and satisfaction. The change of mentality cannot be carried out overnight.

The General Service staff/Permanent Professional staff boundary is a particular issue. HRM is a strategic activity: this is not obviously the case in ITC. will affect the quality of the work and the job satisfaction of individuals. Over the last decade. four internal and two external appointments). it is vital that the full set of HR available to ITC is considered holistically: at present the Permanent Professional staff. not just the role of the HR department). so that. say. not a key element of.Report is prepared for the end of the year: the heaviest workload period. Strategic Human Resource Management ITC is not a status-quo organization. managerial roles. and the General Service staff (and the various combinations of these categories) are considered as separate and rarely considered together. In addition. As a straightforward example. it is clear that succession plans for the retiring top management team. which should have been implemented from five years ago (preparing replacements and a judicious mix of. often working alongside Permanent Professional staff who are no more qualified. the Contract Professional staff. In many cases these distinctions reflect tradition or budgetary drivers rather than the strategic needs of the organization. the outcomes of the performance management system lead on to obvious rewards and sanctions. if not addressed. HRM is seen as external to. for example. There are highly qualified General Service staff frustrated by their managers’ attitudes towards them and their inability to progress. it has faced a number of Managerial challenges and has responded to them effectively and succeeded in reorienting Itself It has opted in favor of constantly refining its operations on the basis of dialogue with its stakeholders. • This inadequate/uneven distribution of tasks. Given its importance (see above). were not even identified as necessary until last year. This is always the case in ITC (see below). There is little evidence of forward planning of HRM in ITC. (Again the Evaluation emphasize that it is discussing the management of HR by ITC. HRM policies and practices need to be not only “vertically” consistent with the mission and targets of the organization but also “horizontally” consistent. The Evaluation could identify no policies relating to the kinds of HR skills and 2011-12 ITC Limited Lucknow 41 . Annual reports could be prepared at other times of the year. the Consultants.

ITC currently has no outline of managerial competences and has neither adopted the UN system recommendations nor developed its own list of managerial competences. unlike many organisations in the UN system. such as recruitment and performance assessment”. The OIOS report (2004) noted that “a comprehensive HR strategy was being developed”. 2011-12 ITC Limited Lucknow 42 .attributes ITC will need in the future and how it intends to make the transition towards those capabilities. The position still seems to be the same. Line Management Capacity for HRM There is a widespread feeling that past selection of higher level Permanent Professional and Director staff has been carried out with little attention to the people management competences required for these roles and that. It also means that management training (see below) is noticeable by its very limited and untargeted nature. ITC does not have a high proportion of excellent managers. rather than on the basis of competences for the job they are about to take up. Indeed. it is difficult to see how such training needs could be identified. Without a set of competency criteria against which to assess individual managers. as a consequence. The effect is that senior staff are promoted or selected on the basis of technical competence alone or as a reward for previously showing evidence of technical skill. but stated that it “had not seen any documentation…” and that “important areas not cover by the indicators.

and opens up the option of internal mobility within the organisation. debating with university. It is important that people management responsibilities are clearly identified and monitored in the assessment system for all managerial staff. There is a dearth of serious management training in ITC. This provides the senior management with a large degree of flexibility. with respect to replacing senior staff. Contracts There is a trend towards hiring staff on a fixed term basis. The use of staff at the General Service level on short-term contracts appears to be a particular problem. Since the late 1990s. For employees hired on fixed terms. On the one hand. performance criteria can develop as an integral part of the employment contract. ITC faces a dual dilemma in its development activities. It also increases the administrative burden on the HR department. more than half of the chiefs of sections have been employed on a fixed-term basis5.. these technical specialists are often in danger of failing to keep their expertise up to date as they become immersed in the immediate tasks and have limited opportunity for attending expert conferences. However. ITC should identify which staff are in managerial positions and which in senior technical specialist positions (numbers supervised would be an obvious way to determine that). 2011-12 ITC Limited Lucknow 43 . this form of employment can give serious motivational problems.Management Development Like many other technical specialist International Organisations. government or scientific think-tank colleagues and reading and contributing to the latest journals. Clarity about the role and competences required of staff in such positions would enable the training needs of such mission-critical staff to be assessed and addressed. On the other hand. with staff at the end of their contracts more concerned about their renewal than about the tasks they are charged to undertake. but they rarely undertake project management or general management training. their jobs are arguably increasingly at the project management end of activities where technical expertise above a certain level is perhaps less crucial.

training materials. The roster.There are strategic HRM issues with the increased use of Contract Professional staff on short-term contracts. A means of drawing on expertise and alleviating the pressure of resource mobilisation is to draw on experienced external consultants. is seen as an inefficient tool by the majority of the staff interviewed: • The system is mainly reactive as limited efforts are deployed to identify potential qualified consultants and attract new candidates. There is a general feeling within the organization that the pressure to spend money 2011-12 ITC Limited Lucknow 44 . report etc. A new online system will be established for application and screening candidates and linked to the improvement of the consultants’ roster and candidate selection Process (ITC business plan 2003-2005). that this use is a thought through response to the exigencies and current and needs of ITC operations: in many cases it is entirely a short-term response to budget pressures. Consultants ITC maintains a “consultants” roster. Consultants are identified through the network of the professional staff of ITC. It is not clear. which may be a study. in other words. and • There are time constraints for selection of consultants due to registration and approval procedures. The HRS screens candidates to ensure that they meet the minimum qualifications. And this is where the flexibility of the roster plays a very important role. The deliverable becomes the property of ITC and is integrated into its programme. • The competence base is inadequate. Division of Program Support currently has on its work programme a project to enhance the system to facilitate collection and management of data in the consultants’ roster and for intranet access. which includes key information on each individual’s qualifications and experience. as designed presently. getting qualified consultants in specialised fields is not always possible. Consultants are hired to provide a defined deliverable. which suggests that information on consultants is obtained through other channels such as recommendations and contacts. and from which the staff can select potential candidates when external consultancies are needed. The form for Curriculum Vitae contains minimal information compared to that required by many organizations and consultancies when mobilizing experts.

has not become part of the ITC recruitment process”. Members of the SMC told us that ITC “needs more proper managers” and increasingly is looking to the private sector in an attempt to find them. and based on the future expected performance of individuals. a third did not believe that either General Service or Permanent Professional posts were awarded on the basis of merit. The Employment Cycle in ITC Filling Posts ITC posts are not subject to the geographic or gender distribution rules applied in the UN common system organisations. the Evaluation has no evidence as to whether the system has improved since 2003. about differences between departments. However. There is some evidence that ITC’s recruitment is becoming more difficult. and about an “old boy network”. The Evaluation heard comments about the lack of transparency in appointments. but are increasingly based on the identification of competences and skills needed to fulfil the functions of the organisation.before each year-end means that ITC staff tend to worry less about quality than about availability. This reflects the OIOS (2004) report conclusion that “efforts to streamline the recruitment process” were necessary and that “one of the main goals of the new staff selection system. 2011-12 ITC Limited Lucknow 45 . Job Descriptions are still very technical and generally include nothing on people management skills. The 2003 staff survey found that almost half of those who responded either disagreed or strongly disagreed that selection for posts was transparent.e. i. to empower managers in making recruitment selection decisions. The Evaluation was quoted one example of a Head of Section advertised four times in a year: evidence that the organisation has problems both in its succession planning and in its capacity to attract good quality candidates from outside.

There is some evidence that internal communications have improved in the two years since the last staff survey. 40% felt that consultation among staff of different divisions on product and program delivery was “good” or “very good”. and • Less formal. number two the SMC minutes. perhaps the most critical element is the fact Evaluation are missing the process of cascading down the Annual Business Plan and Operating Plan. • Annual Operations Plan (AOP) could be a very useful source of information if properly implemented. Nevertheless. However. Some typical comments include the following. The sharing of 2011-12 ITC Limited Lucknow 46 . An excellent feature of the SMC functioning is the open and free discussions and exchange of views on issues at the highest management level. and number three is the Division and Section meetings. ITC has a number of communications mechanisms both formal and informal for keeping staff informed. The Project Portal is used at least once a week by 70% of respondents.7% felt that communication was “good” or “very good”. • Informal gatherings such as coffee breaks. management’s efforts to increase and improve communication appear to be yielding results. but still official. Thus. The most useful formal communications mechanisms identified in the 2004 survey are considered to be number one: the Project Portal. respondents also feel that communications could be improved. and 87% found the information on the portal to be quite accurate to very accurate. • Groups presenting their activities are also providing an excellent vehicle for cross functional communication. lunches and ITC parties provides useful information. communications mechanisms such as lunch-time presentations appear to be working well. 27. The evaluators can only encourage further activity in this direction.Communication A key element in a knowledge management based organisation such as ITC is internal communication.

of course. In addition. or as part of overall programme performance evaluation. Many people feel under too much pressure with their work to consider taking time to learn.decision making and transparency within higher management means that. This is. Training and Development HRS prepares the annual training plan: Division Directors are requested to indicate the skills gaps that have been identified among their staff. 2. Training plans are then developed. Like the OIOS. Presentation Skills. 3. Training and development are crucial not just to the effective achievement of the mission of ITC but also in motivation. opening up the opportunity for career advancement or 2011-12 ITC Limited Lucknow 47 . Managers are not necessarily good at identifying staff training needs and staff may not be aware of the options open to them. by showing that the organisation cares about its employees’ capacities. The Evaluation has already noted issues about management development above. Division of Programme Support organizes courses such as Project Management. Good training and development is seen as a mutual gains reward for the employees. Yet technical specialists may be recruited who are not trained in the skills and knowledge for capacity building and managing technical assistance projects. There are three main problems here: 1. Public Speaking. HRS endeavours to identify facilitators and organize courses that will address the identified needs. a vicious circle as staff who do not learn will increasingly struggle to keep up with he work demands (the old joke: “I’ve got too much work to go on a time management course…”). Enterprise Management Development Section also has a programme for training of trainers. the Evaluation considers that there is a “need for more technical and substantive training”. The ITC training and development budget is low for an organisation with ITC’s scale and much of that budget is spent on Information Technology and language training. Gaps can be identified in the context of the Performance Appraisal process. Capacity-building is the core of the programmes and ITC staff members are expected to be qualified in this. as the 2009 OIOS report pointed out: “the SMCs practices enhance transparency of decision-making in ITC.

but it should go down through the organisation. This is a particular challenge for ITC because it is a small agency employing technical specialists with limited internal opportunities for promotion. combined with the aging employment structure within ITC. The learning message is that there needs to be a succession plan for all managerial appointments. Paradoxically. Career Planning The Evaluation could find no evidence of career planning for staff and considerable concern about its absence. and particularly the case with more democratic and transparent organisations.career change (it is recognized that in ITC opportunities for career advancement are relatively few as people like to work in the organisation and tend to stay for a long time). In all surveys there is an element of disappointment about this issue. Even though it appears that progress has been made recently. As with all organisations. but these are comparatively high figures. that around half of the staff did not feel that they are treated equally in terms of career progression. in such circumstances. is thinking broadly and is clear about options. Clearly. like the wider 2003 staff council survey. Succession Planning Linking the issues of retirement of senior management with the concern for continuity and career planning in the context of a comprehensive HR strategy raises the related issue of succession planning. there are limits to the rigidity of such planning: but that. the retirement of the whole SMC in the next year has made this issue very apparent. The SMC argues that this will “Only become real in 2005” but that is obviously too late to have started making the necessary arrangements. is actively seeking to provide variety and mobility. The 2004 survey of Permanent Professional staff conducted by the Evaluation found. There is also evidence that the selection of candidates for posts is not seen by everyone as being undertaken in a transparent manner or that posts are awarded on the basis of merit. there is greater pressure on the organisation to show that it is concerned about people’s futures. 2011-12 ITC Limited Lucknow 48 . there is an opportunity to undertake further research on the importance of training (in the broadest sense) as an employee motivator. The Evaluation has not seen a succession plan or a relevant part of an HR strategy.

What is Training in terms of organization?

“Transferring information and knowledge to employers and equipping employers to translate that information and knowledge into practice with a view to enhancing organization effectiveness and productivity, and the quality of the management of people.” It also means thatin organizational development, the related field of training and development (T& D) deals with the design and delivery of workplace learning to improve performance. Difference between Training and Learning There is a big difference: ➢ 'Training' implies putting skills into people, when actually we should be developing people from the inside out, beyond skills, i.e., facilitating learning. ➢ So focus on facilitating learning, not imposing training. ➢ Emotional maturity, integrity, and compassion are more important than skills and processes. If you are in any doubt, analyze the root causes of your organization's successes and your failures - they will never be skills and processes. ➢ Enable and encourage the development of the person - in any way that you can. ➢ Give people choice - we all learn in different ways, and we all have our own
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strengths and potential, waiting to be fulfilled. Talk aboutlea rning, not training.

Focus on the person, from the inside out, not the outside in; It is a classic question in the training field, first raised by human capital theorists, that why firm strain their employees. Many attempts have been made to address this question, but the question of why firms provide general-skill training has not been fully understood. There have been two main theoretical approaches towards employee training, namely, the human capital approach and the technology-based approach. The human capital approach regards training as investment inhuman capital. Training is provided only when the benefit from productivity gains is greater than the cost of training. The technology-based approach regards training as a skill formation process. According to this approach, the expanded training in the contemporary period is driven by the rapidly changing technologies and work reorganization. These two approaches are popular in academic and policy discussions. What they have in common is that they assume an instrumental logic and technical rationality behind training decisions. Training is provided because it satisfies the functional needs of an organization. Studies with these approaches have largely over looked the content of employee training, as if all kinds of training programs equally contribute to human capital accumulation or skill formation. Moreover, personal development training becomes a puzzle if viewed from these approaches, because it does not seem to follow from an instrumental logic or technical rationality.

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The Puzzle about Personal Development Training The puzzle about personal development training comes in the following four ways. First, it is not innately or immediately related to the technical aspects of specific job tasks. Second, prior need analysis is rarely conducted for such training, despite suggestions to do so in many training handbooks. Third, organizations and trainers seldom conduct evaluations of behavior or outcome changes brought out by such training. Evaluation, when there is one, is often about how one feels about the training or what one has learned. The evaluation questionnaire is often called a "smile sheet," as trainees often respond happily to the questions. But the impact of the training remains uncertain. Fourth, the rapid expansion of personal development training has taken place in the absence of scientific evidence of any link between such training and improvement in organizational bottom lines. Core Argument So, why have organizations increasingly engaged in personal development training? It is because that the rise of the participatory citizenship model of organization over time has driven the expansion of personal development training in organizations. This argument is based on an institutional perspective towards organizations. It is distinct from previous approaches to training in two ways. First, it recognizes that training is not only provided to satisfy functional needs of firms, but is also shaped by the shared understanding about individuals and organizations, which is called "organizational model" in this study and is independent of the functional needs. Second, training decisions are not only affected by the internal conditions of an organization, but are also affected by the dominant ideologies and practices in the organizational field.
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which can lead to increased membership and influence. Third.Importance of Developing a Role in Training Developing a national role in training is important for an employers' organization for several reasons. advisory and representation services. it contributes to better human relations at the enterprise level and therefore to better enterprise performance. it provides an important service to members.which employers should recognize as one key to their competitiveness in the future. by matching corporate goals and people management policies. it compels its own staff to improve their knowledge without which they cannot offer training to enterprises through their own staff. Sixth. But without measurable results. Finally. it enables the organization to contribute to the development of a country's human capital. It also enables it to influence employers in regard to the need for them to invest more in training and employee development . Many entrepreneurs seem to view employee training and development as more optional than essential. training and development aren't focused on producing a targeted result for the business. the knowledge required for training increases the quality of other services provided by the organization . This is completely understandable when you realize that in many companies.. to better serve business needs. Fourth. The primary reason training is considered optional by so many business owners is because it's viewed more as an expense than an investment.policy lobbying. First. Now contrast that approach to one where training's viewed as a capital investment with thoughtful consideration as to how you're going to obtain an 2011-12 ITC Limited Lucknow 52 . business owners frequently send their people to training courses that seem right and sound good without knowing what to expect in return.. it is an important source of income provided the organization can deliver relevant quality training.a viewpoint that can be costly to both short-term profits and long-term progress. it improves the overall image of the organization and invests it with a degree of professionalism. As a result. through its influence on education policies and systems and training by public training institutions. Second. especially in industrial relations in respect of which sources of training for employers in developing countries are few. it's almost impossible to view training as anything more than an expense. Fifth.

we must broaden our vision to include people development as part of our strategic planning. they should offer a personal example. And a good place to start your "thoughtful consideration" is with a needs analysis. the employees worked as a team. the customers. attitude. using the term "training" towards the business. needs analysis is really an outcome analysis--what do you want out of this training? Ask yourself. and work performance).acceptable rate of return on your investment. Beyond Training: Training and Development Training is generally defined as "change in behavior" . They were more than pleased when he asked them to express their opinions. emotions and employees' best work performance. Although training covers a broad range of subjects under the three main categories (skills. He was surprised at the immediate transformation that took place. As it relates to training and development.yet. but Human Resources Directors and Training Managers (whose title should be "Training and Development" Managers). knowledge). By their actions. Training and Development represents a complete whole that triggers the mind. "What's going to change in my business or in the behavior or performance of my employees as a result of this training that's going to help my company?" Be forewarned: This exercise requires you to take time to think it through and focus more on your processes than your products. backgrounds. coaching and guiding all the people in an organization to think "beyond training" and invest efforts in people: •Professional development •Personal development. ideas. their motivation sky-rocketed and he never had to replace them! All this was accomplished by extending the previous concept of training to that of training and people development. 2011-12 ITC Limited Lucknow 53 . He began receiving excellent reviews from his customers. and themselves (taking charge of their own training. how many trainers and managers forget that. It is not only business managers and owners who must do this shift in thinking. needs and aspirations? In order to achieve long-term results through training. development. using the term training only as applicable to "skills training"? What about the human element? What about those very same people we want to "train"? What about their individual beliefs. make comments and suggestions.

The contribution that training can make to development is needed acutely and obviously. Training is neither a panacea for all ills nor is it a waste of time. Dissatisfaction persists and is growing at the working level where the benefits of training should show up most clearly. structures and budgets. too simply. doubts arise over its contribution in practice. Training has made significant contributions to development of all kinds. This field is however.at least they do not do so for a long while. What is required is an insight into what training can or cannot do and skill in designing and carrying out training effectively and economically. Over the years. Training & Evaluation Training Improving business performance is a journey. people do not quit a place of work as soon as they have grown personally and professionally through training and development programs . the limited 2011-12 ITC Limited Lucknow 54 .Contrary to what some manager’s think. Business performance rises and falls with the ebb and flow of human performances. but it is still young. training as an activity has been going on as a distinct field with its own roles. training programmes have grown into corporate with these goals in mind. The ultimate goal of training is to develop appropriate talent in the workforce internally. With disillusionment mounting in the midst of expansion. training has entered a dangerous phase in its development. Complaints are growing over its ineffectiveness and waste. Training is essential. Using experience with training in India and other rapidly developing countries has this advantage at similar risk. This disillusionment shows in many ways – reluctance to send the most promising people for training. not a destination. The training apparatus and costs have multiplied but not its benefits. inadequate use of personnel after training etc. The searchlight of inquiry may make the task and challenges stand out too starkly. At the same time. expanding fast but controversy seems to envelop any attempts to find benefits commensurate with the escalating costs of training. HR professionals lead the search for ways to enhance the effectiveness of employees in their jobs today and prepare them for tomorrow. Training programmes should enhance performance and enrich the contributions of the workforce. In India.

2011-12 ITC Limited Lucknow 55 . If they find the new behavior useful. or discontinue learning in this direction. But the main purpose remains: participants explore in a training situation what interests them. Participants may find their organizations offering encouragement to use the training and also support for continuing contact with the training institution. no waste is permissible. check it for effectiveness and satisfaction. no promise can be ignored. selection of suitable participants. The training process is made up of three phases: Phase 1: Pre-training. There is no guarantee that the participants will in fact learn what they have chosen. These lines are sharply drawn. they may step into a quagmire of negativity. When training per se concludes. Phase 2: Training. they discard it. they try it again. In the simplest training process. The process starts with an Understanding of the situation requiring more effective behavior. On the other hand. and planning for any changes that improved task performance will require in addition to training. Having explored. Finally. More effective behavior of people on the job in the organization is the primary objective of the training process as a whole. on the other. the situation changes. When the participants return back to work from the training. The intricate process of selection and testing is continuous and more or less conscious. they incorporate this new facet into their habitual behavior in the training situation. During the course of the training. try some variant. and a training institution’s basic task is to provide the necessary opportunities. It is important that work organizations meanwhile prepare the conditions for improved performance by their participants upon their return.resources available in these countries make this contribution hard to come by. An organization’s concerns before training lie mainly in four areas: Clarifying the precise objectives of training and the use the organization expects to make of the participants after training. a process of adjustment begins for everyone involved. participants try out some new behavior. Phase 3: Post-training. This may be called the "follow up" phase. The newly learned skills undergo modification to fit the work situation. building favorable expectations and motivation in the participants prior to the training. on the one hand. try it repeatedly and improve it. participants focus their attention on the new impressions that seem useful. If they do not find it useful. stimulating and engaging. This may also be called the preparation phase.

Training can bring about an improvement in a person’s: ✔ Knowledge ✔ Skills ✔ Attitude ✔ Thereby raising his potential to perform better on the job. experiencing.improvement is a dependent variable. improving inter-group relations and quality of work life. It is not a substitute for development on the job. It can be used for strengthening values. This would have the effect of improving the morale of the existing employees. observing. The ultimate objective of training in the long run is to improve the company’s performance through people performing better. Intervention to raise awareness of key issues such as pre-course and post-course 2011-12 ITC Limited Lucknow 56 . and participants and organizations independent variables. However. Research has shown that80% of a person’s development takes place on the job. training can contribute the vital20% that makes the difference. which comes from doing. Benefits of Training Evaluation Evaluation has three main purposes: Feedback to help trainers understand the extent to which objectives are being met and the effectiveness of particular learning activities – as an aid to continuous improvement Control to make sure training policy and practice are aligned with organizational goals and delivering cost-effective solutions to organizational issues. giving and receiving feedback and coaching. building teams. 2) Growth Training is also directed towards developing people for higher levels of responsibility there by reducing the need for recruiting people from outside. 3) Organizational Effectiveness In company training provides a means for bringing about organizational development. The training process has the following major objectives: 1) Improvement in Performance Training will be an important aid to managers for developing themselves as well as their subordinates.

Views on how to do it better are formulated and tested . new trainer ➢ Redesign the preparation/pre-work – new briefing material. The outcome may be to: ➢ Abandon the training ➢ Redesign the training – new sequence. Training which has been planned and delivered is reflected on. earlier or later in the company calendar ➢ Leave well alone The following are the clear benefits of evaluation: ➢ Improved quality of training activities ➢ Improved ability of the trainers to relate inputs to output ➢ Better discrimination of training activities between those that are worthy of support and those that should be dropped ➢ Better integration of training offered and on the job development ➢ Better co-operation between trainers and line-managers in the development of staff ➢ Evidence of the contribution that training and development activities are making to the organization ➢ Closer integration of training aims and organizational objectives 2011-12 ITC Limited Lucknow 57 . new methods. new content.briefing and the selection of delegates Evaluation is itself a learning process. new pre-course work ➢ Rethink the timing of the training – earlier or later in people’s career. earlier or later in the training programme.

First and foremost it must be viewed from an "internal" point of view i. The rend towards a more" empowering" style of management and an increasing emphasis on self-development have combined to bring about a move away from didactic instruction towards coaching and facilitation and away from "trainer" towards "performance improvement consultant". the training and development of its own staff. In the coming future. working to harness the brainpower.The Way Ahead The development of learning organizations. all of which fall within the following: 2011-12 ITC Limited Lucknow 58 . reflects the fundamental importance of training and learning for those organizations that hope to prosper in the new millennium. knowledge and experience of their people. the internet and multi-media training Emphasis on cross-cultural development Remote learning to reflect changing patterns of work The Training Role Internal Training The role of an employers' organization in training has to be viewed from different perspectives. the following trends are likely to be seen: Increased use of virtual reality. This is essential to the effectiveness of the organization's training services as well as to the other services it provides members.e.

Purchasing. day out. Marketing & Sales in Front Office. performing the same duties day in. It should begin with supervisory level and filter down to entry-level positions. Food & Beverage. This results in a feeling of exploitation and has the reverse of the intended effect An effective training technique which results in motivation is cross-training. covering all positions and departments. Housekeeping should cross-train in Front Office and vice-versa. is the basis on which to build employee motivation. upward and downward. Sales. Cross-training should be carefully planned and presented as a learning opportunity. Food &Beverage. including human resources directors.•Influencing the legal and policy environment needed for business growth and development •Direct services to members Cross-Training as a motivational and problem-solving Technique Many managers. without expectations of change in routine or opportunities for advancement. when implemented horizontally. It should be incorporated in a hotel's master yearly training plan. assistants and employees can cross-train in different departments or within the department itself. employees can have one day training in the role of department head ("King for the Day"). the absence of turnover quickly results in demotivation since the possibility of motion and forward-motion is taken away from employees. Following a reading or lecture on the subject. With background support. mistakenly believe that employee motivation can be won through monetary rewards or other perks. This technique achieves the following objectives: •Prevents stagnation 2011-12 ITC Limited Lucknow 59 . Front Office in Marketing. which is a form of cross-training. While high employee turnover reflects on low morale and lack of motivation. in a good work environment. They learn soon enough that such perks are taken for granted and that money is not the key to employee motivation. Security. Human Resources in different departments and vice versa. Food & Beverage Service in the Culinary department and vice versa. Department heads. Public Relations. managers sometimes implement "job enrichment “in a misguided manner. department heads can take roles replacing him. adding unrewarded responsibilities on the shoulders of their supervisors and employees. when seen from another angle.When a General Manager is away. A professional and unified management. Banquets. It is against human nature to remain static.

persons who have been trained as trainers. and in providing training to members. When employees think "the grass is greener on the other side of the lawn" they soon realize their mistake after exposure to other departments. This has to be an effective planned process. They become "partners”.•Offers a learning and professional development opportunity •Rejuvenates all departments •Improves understanding of the different departments and the hotel as a whole •Leads to better coordination and teamwork •Erases differences. Employees must "buy" into the idea.and to provide staff with study tours to other employers' organizations. been courage to give feedback and make suggestions for improvement. Problems for Employers' Organizations Developing Training Role Several reasons account for the problems faced by employers' organizations in training their own staff. This places a heavy responsibility on senior staff to train newrecruits and on staff to develop themselves. an employers' organization would generally have to keep full time training staff to minimum. there are no courses and training institutions which are geared to the needs ofemployers' organizations. They include the following: • Unlike enterprises which can have their staff trained in management and other traininginstitutions. Due to financial constraints. enmity and unhealthy competition Increases knowledge. Therefore staff with special skills providing advisory and 2011-12 ITC Limited Lucknow 60 . skills and work performance •Improves overall motivation •Leads to the sharing of organizational goals and objectives.e. Therefore organizations often rely on the ILOto conduct training programmes designed to serve the needs of employers' organizations. • The economic viability of having full time training staff. • Inadequate training material • Inadequate information/knowledge relating to labor-related subjects needed to attract enterprises to the organization's training programmes. They return to their job with a better attitude. Sending people to work in another department at a moment's notice is not what cross-training is about. knowhow. •Most organizations do not have skilled trainers i. Departmental communications meetings can be used to share lessons learned.

Bosses and organizations still tend to think that people whom are managed and employed and paid to do a job should do what they're told to do.representation services should be trained as trainers to enable them to undertake some training in their areas of expertise. people look at things in a different way. Or more precisely. Why? Are the people stupid? Can they not see the need for change? Do they not realize that if the organization cannot make these changes then we will become un competitive. and to motivate people towards changing what they do. mostly fails. which typically encompasses training and development. or persuade them. and 'motivation'. Organizational Change Conventional organizational change. We are conditioned from an early age to believe that the way to teach and train. is to tell them. Can they not see it? Actually probably not. We will lose market share. There will be job cuts. 2011-12 ITC Limited Lucknow 61 . We will eventually go out of business.

contribute towards the success of an organization.HYPOTHESIS We believe that the three sub-systems of HRD namely Recruitment & Selection . Compensation . 2011-12 ITC Limited Lucknow 62 .& Carrier Development.

Methdology i) QUESTIONNAIRE METHODS a) Personal Interviews b) Mail Survey c) Telephonic Interviews ii) EXPLORATORY RESEARCH • In Depth Interviews ITC Limited Lucknow 63 2011-12 .

contributing towards its success. Recruitment & Selection is the process to recruit and select new employees.OBSERVATIONS Our observation as follows Recruitment & Selection Recruitment & Selection as rated by ITC is a moderately important factor. 2011-12 ITC Limited Lucknow 64 .

department gives.R. of this organization and finally reached consensus that the non H.R Dept. We have 12 respondents from the H. 2011-12 ITC Limited Lucknow 65 .CONCLUSION Upon analyzing the above organization we have concluded the H.R. departments are not very satisfied with the policies of the above three subsystems.R and 13 respondents from the Non H.

and in particular the ability of such managers to develop subordinates. The production of the comprehensive HR strategy is the responsibility of SMC and should be accelerated and linked to a set of clear strategic principles and criteria for the management of people. As the new PAS is brought on-stream it needs to emphasize staff management. Spending on training and development. ITC should improve the HR planning process to ensure smooth changes and continuity in the skills and competence needed at ITC. 7. 5. 9. ITC should develop a formal change management process and program to take the organisation in the direction decided by the new SMC. Training and development for managerial staff is crucial to ITC meeting its targets. When a new management team is in place. ITC should develop and publicise a comprehensive HR strategy built around the development of a set of managerial and technical competencies. This should be a regular item on the senior management team agenda.Recommendations 1. 4. whatever contact they are on. 3. as a proportion of the total budget. 6. 8. with managers selected against managerial competences and well-trained in management would be a valuable addition to the administrative HR management currently in place. should be increased. ITC needs to identify bottlenecks and ensure back-ups for staff with heavy workloads and to mobilize resources and distribute the tasks more evenly. That will mean using a wider pool and relying less on a small number of those currently being used. making sure that consultants are selected for “fit for purpose” reasons. HRM in ITC needs to be considered and monitored holistically: all the HR. are vital to the effective operation of such a tightly resourced organisation and need to be handled comprehensively. 2. ITC should explore the benefits of adopting an “annual hours” work contract. ITC should extend its pool of consultants. Project managers should be 2011-12 ITC Limited Lucknow 66 . ITC should examine carefully its use of different forms of employment contract to ensure that it is deriving the maximum advantage from the options available to it.

2011-12 ITC Limited Lucknow 67 . universities and other bodies. New life should be breathed into ITC’s mobility program and the opportunity for second mends. should be made to work effectively. but also to governments. 13. the Evaluation believe that “the training strategy should be finalized expeditiously and should address the need for more extensive substantive training and organisation-wide sharing of professional expertise”. OIOS advised that “ways to facilitate movement of staff among ITC divisions should be explored”. 10. ITC should develop a consistent approach to career planning and development. 16. With the OIOS report. linked to application by and screening of candidates and to the improvement of the consultants’ roster and candidate selection process. As a subsection of the HR strategy and linked to the training and development strategy. 14. This should be monitored and the number of such movements be reported to the senior management team annually. 11. younger people working alongside older people at every level. ITC should develop a comprehensive performance identification (measurement) system that takes into account both financial (objective) and non-financial (subjective) measures11. 12. ITC should develop succession planning policies. to and from UN or WTO. Whilst recognizing the progress that has been made communication is an issue where no management can afford to relax its attention. wherever possible. 17. 15. The Evaluation would echo the OIOS report that “Enhanced horizontal communication and strengthened divisional and intersectional cooperation in project development and implementation would further increase the value of ITC activities”.required to show that they have updated their list of consultants and that none have been used for more than 100 days per year. ITC needs to examine its staff allocations and ensure that there are. As part of its comprehensive HR strategy and linked to the development strategy. giving them the opportunity to move between departments. ITC should evaluate establishing pro-active regional or country representation in order to be closer to both its clients and its stakeholders and partners. ITC should clarify and utilize a rotation program for staff. The new online system needs to be established as a priority.

form suitable strategies which address the needs of the employees and implement those strategies. The training provided by the companies should be conducted by highly skilled professionals and the training needs a greater degree of specialization.R. Hence they employees would be able to solve their issues as soon as possible and therefore become more productive to the company.As our first recommendation to the H. department needs to identify the needs of the employees. Training and development should also be conducted at higher levels of management as it would have a direct impact on all the other levels.R. so as to enhance the performance of the employees. Secondly the H. A change in the job responsibilities or providing the employees with everyday challenges in the job design will enhance the motivation of the employee and thereby his performance. department we would say that this department needs to establish a permanent system of feedback from all the employees so that they are always up to date and in touch with all the employees ongoing needs and problems. The job structure should so designed that it meets the esteem needs of the employees. 2011-12 ITC Limited Lucknow 68 .

We are go ing to state all of them in the following:- • Company privacy policy is a major hurdle which restricts the free-flow of information. Throughout this journey always th e road was not smooth. • Due to their busy schedule many of the higher level employees couldn’t give us enough time and hence we retrieve a complete in depth information as desired. sometimes there were stones and thorns on the roads. 2011-12 ITC Limited Lucknow 69 .LIMITATION During the course of our project we have faced some difficulties in collecting the in formation and also in completing the project accurately.

4. JOURNAL FROM ITC 2011-12 ITC Limited Lucknow 70 .itcportal.com 5.S.DWIVEDI.ROBBINS. HUMAN RESOURCES MANAGEMENT – BY MIRZA. 3.P. 2. PERSONAL/ HUMAN RESOURCE MANAGEMENT – BY DAVID. WEBSITE ADDRESS AS FOLLOWS:  www. HUMAN RELATIONS AND ORGANISATIONAL BEHAVIOUR – BY R.DECENZO & STEPHEN.BIBLOGRAPHY The following are sources of information from where we have got help to complete this project.SAIYADAIN. The names of those sources are given in the following:1.S.A.

2011-12 ITC Limited Lucknow 71 . Filled in questionnaires of eminent personnel’s from the HR Department of ITC. Filled in questionnaires of eminent personnel’s from the Non-HR Department of ITC. Collected about 300 visiting cards from the eminent employees working in both the HR and Non HR Dept. 3.ANEXTURE 1. 2.