AUTO INDUSTRY- A REVIEW

INTRODUCTION
The Rs. 5500 crore Indian two wheeler segment is the second largest market fin the world after China. Indias two wheeler production is the third largest in the world after Japan and China. India has a welldeveloped two wheeler market with around 25 million households owning two-wheeler. The Indian two wheeler industry made a modest beginning in the early 1950 when Automobile Product of India ( API ) started manufacturing scooter in India. Until 1958. API and Enfield( motorcycle) were the only two in production. In 1948, Bajaj auto began trading in imported Vespa scooter and the three wheeler- finally, in 1960s. it set up shop to manufacturer them in technical collaboration with piggaio of Italy. The agreement expired in 1971. In the initial stages, the scooters segment was regulated regime, foreign company was not allowed to operate in India, and waiting time for getting Bajaj scooters was as high as 12 years. Java, and escort. While the Enfield bullet was a four strokes bike, the Java and Rajdoot were two-strokes bikes. The motorcycles industry was originally dominated by Enfield with 350 cc bikes. The motorcycles industry was cc segment. The two wheelers segment was opened up to foreign competition in the mid 1980s which saw the entry of the Japanese manufactures into the count

CLASSIFICATION OF THE INDUSTRY

The two-wheeler segment can be categorized into the scooter, mopeds, and motorcycles. Motorcycles: this segment has shown the best performance in the recent years. The market leaders in this section are Bajaj Auto. TVS, Mahindra,

Hero Moto Corp (previously Hero Honda). [The splendor is the most popular segment among motorcycles.] Two Wheeler Industry It wasnt an easy year for the two wheeler industry. Rising interest rates and the economic slowdown resulted in delayed consumer decision making and a rise in loan defaults. Over the course of the year, banks withdrew financing facilities from satellite towns. The share of financing, which had increased rapidly to 50-60 per cent of the total retail sales by early 2007, has now come down to below 30 per This came as a major setback for the two-wheeler industry. Ongoing government investments very clearly emphasis inclusive growth through improved

connectivity, job-creation and improving quality of life. The rural road outlay has been upped by close to 60 per cent, the budget for the Urban Renewal Mission has been hiked by 87 per cent, and fund allocation to the ongoing National Highways program has been upped by 23 per cent. Importantly, India has added fresh impetus to its flagship job creation program for rural India: the National Rural Employment Guarantee Scheme. During 2008-09, this scheme, which provides 100 guaranteed days of work a day for the countrys rural poor, provided employment opportunities to more than 44 million households last year; a year ago, 33 million households were covered. During the year, there have been important developments in two wheeler industry. The competition has strengthened though there are hardly any new entrants into the industry. There is an increasing emphasis on price and this has led to cost cutting efforts all across cent. the industry, thereby, making the customer an ultimate beneficiary. The trend also saw introduction of new motorcycles with capacity ranging from 100 to 250cc bikes. We anticipate that many more new models will be launched during the year and provide customers plenty of choice at competitive prices. Businesses cannot consistently

grow at 25-30 per cent. Each business has a tendency to taper and plateau after attaining a particular size. An annual growth rate of 10-12 per cent over a period of time is extremely healthy. The TCS study rankings are conducted at the motorcycle segment level to provide comparisons among similar groups of motorcycles. Motorcycles ranking highest in their respective segments for TCS are: Hero Moto Corp (previously Hero Honda) splendor plus (best standard motorcycle segment); Bajaj pulser (best executive motorcycle segment); Hero Moto Corp (previously Hero Honda) karizma (best premium motorcycle segment); and Royal Enfield Bullet Electra (best cruiser motorcycle segment). "The relatively low score for the executive segment indicates that most manufacturers have fallen short of meeting the high expectations of these buyers,".

COMPANY PROFILE
The Hero Moto Corp (previously Hero Honda) story began with a simple vision the vision of a mobile and an empowered India, powered by Hero Moto Corp (previously Hero Honda). This vision was driven by Hero Moto Corp (previously Hero Honda)'s commitment to customer, quality and excellence, and while doing so, maintain the highest standards of ethics and societal responsibilities. Twenty five years and 25 million two wheelers later, Hero Moto Corp (previously Hero Honda) is closer to fulfilling this dream. This vision is the driving force behind everything that we do at Hero Moto Corp (previously Hero Honda). We understood that the fastest way to turn that dream into a reality is by remaining focused on that vision. There were many unknowns but we kept faith, and today, Hero Moto Corp (previously Hero Honda) has been the largest two wheeler company in the world for eight consecutive years. Our growth has kept compounding. The company crossed the ten million unit milestone over a 19-year span. In the new millennium, Hero Moto Corp (previously Hero Honda) has scaled this to 15 million units in just five years! In fact, during the year in review, Hero Moto Corp (previously Hero Honda) sold more two wheelers than the second, third and fourth placed two wheeler company put together. With Hero Moto Corp (previously Hero Honda), the domestic two wheeler market was able to show positive growth during the year in review. Without Hero Moto Corp (previously Hero Honda), the domestic market would have actually shrunk. Over the course of two and a half decades, and three successive joint venture agreements later, both partners have fine-tuned and perfected their roles as joint venture partners. What the two partners did was something quite basic. They simply stuck to their respective strengths. As one of the world's technology leaders in the automotive sector, Honda has been able to consistently provide technical knowhow, design

specifications and R&D innovations. This has led to the development of world class, value - for- money motorcycles and scooters for the Indian market. On its part, the Hero Group has taken on the singular and onerous responsibility of creating world-class manufacturing facilities with robust processes, building the supply chain, setting up an extensive distribution networks and providing insights into the mind of the Indian customer. Since both partners continue to focus on their respective strengths, they have been able to complement each other. In the process, Hero Moto Corp (previously Hero Honda) is recognized today as one of the most successful joint ventures in the world. It is therefore no surprise that there are more Hero Moto Corp (previously Hero Honda) bikes on this country's roads than the total population of some European countries put together! The company's meteoric growth in the two-wheeler market in India stems from an intrinsic ability to reach out and come closer to its customers, with every passing year. Hero Moto Corp (previously Hero Honda)'s bikes are sold and serviced through a network of over 3500 customer touch points, comprising a mix of dealers, service centres and stockists located across rural and urban India. Hero Moto Corp (previously Hero Honda) has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its third and most sophisticated plant at Haridwar has just completed a full year of operations. It is difficult to imagine that all this has happened in the span of just two and a half decades! The best is yet to come. During the year in review, Hero Moto Corp (previously Hero Honda) powered its way in a market that, for all practical purposes, was feeling the full effects of the economic slowdown in India. With an economic recovery now clearly on the cards, Hero Moto Corp (previously Hero Honda) is all set to ride into another summit. As Brijmohan Lall Munjal, the Chairman, Hero Moto Corp (previously Hero Honda) Motors succinctly puts it, "We pioneered India's two wheeler

industry, we've steered it through difficult times; now it is our responsibility to set the pace again.'' New Models The company has a large portfolio of brands, with the moneyspinners being mainly Splendor Plus (the world's largest selling bike) and Passion. However, the company claims it was the launch of the 150cc CBZ and 225cc KARIZMA which established Hero Moto Corp (previously Hero Honda) as an inspirational brand. "The launch of CBZ and KARIZMA got us into a different league altogether. Although the sales are just about 3,000 a month, it made us an overall bike company, Hero Moto Corp (previously Hero Honda) would launch a new model of the KARIZMA by the end of current year, the Managing Director, Mr. Brijmohanlal Munjal, said. Meanwhile, the company is yet to decide on the location of its proposed Fourth manufacturing unit. The feasibility study is on'', he said, adding that the new plant was likely to come up in the next 18 months. New launches are likely to help Hero Moto Corp (previously Hero Honda) gain a market share in the coming quarters. Hero Moto Corp (previously Hero Honda) Motors Ltd, has launched a new 100-cc four-stroke bike, CD deluxe and Dawn is likely to be phased out of the market once the new model sells ``10,000 plus'' units per month. Sales Performance Hero Moto Corp (previously Hero Honda) went against the grain and created a growth trajectory all of its own. Sales of the company grew by over 11 per cent in volume terms and in value terms; they grew by over 19 per cent. Effectively, this helped the company end the year with a market share of around 60 per cent. This robust performance helped the company increase earnings margin 120 basis pointsa remarkable feat, considering that elsewhere in the world, the automobile industry went through its worst year in recent history. Hero Moto Corp (previously Hero Honda)s performance in its silver jubilee year helped it retain its position as the worlds largest two wheeler company for the

eighth year in a row. It also helped the company cross the 25 million unit mark becoming the first company in India to reach this milestone. Last year, two new models were launched, namely CBZ XTREME and HUNK to address super-style and economy segments. Passion pro has found its position firm amongst Indian models, only next to Splendor, the largest selling bike in the world in terms of sales performance. CBZ was re-launched as CBZ XTREME, in April 2007, with changes and value additions to cater to specific needs of the customers. Reportedly CBZ XTREME is doing well in its segments and has sold over 10,000 units in the initial months itself. Hero Moto Corp (previously Hero Honda) has targeted a sale of over 3 million bikes for the year 2009-10. This effort is supplemented by a major launch this year, in October end; this bike will have some exclusive features and will be in the 200cc plus range. There are some ambitious programmes of launching a new range of bikes with technical support from Honda in the coming years. With a slew of such measures the capacity available at present locations can at best support two-million production target at the existing plants. The company, therefore, is looking at the possibility of setting up a third plant to meet the future demand and for which techno-economic study is in progress. New Initiatives Customer and customer satisfaction is the purpose of our being an entity. To increasingly understand him and make him part of our ongoing business. Customer related initiative has been the increase of warranty period to three years since July 2008. This has attracted a great deal of customer attention. During the year the company has added nearly a hundred dealerships and SSPs. In terms of sheer numbers, the network has grown by 16% during the year 2008-09. We would endeavor to increase our reach to every corner of this country. Plans for the future In the previous year, the domestic two-wheeler industry entered a period of degrowth. However, this was arrested in 2008-09, largely on the back of Hero Moto

Corp (previously Hero Honda)'s performance. After the blip of last year, the twowheeler industry went back to a growth phase, largely driven by Hero Moto Corp (previously Hero Honda) and exports. The industry clocked total volumes of 8.5 million during the year in review, a growth of 5 per cent compared to a fall of 5 per cent in the previous year. The pace of growth was lower in the domestic market, where the industry clocked sales of 7.43 million, a rise of only 2.60 per cent. This, however, was a significant improvement over previous year when the industry had shrunk by 8 per cent. Motorcycles continue to constitute the largest chunk of the two wheeler industry, and during the year in review, accounted for four fifth of sales. Interestingly, for the second year in succession, scooters increased their share in the two-wheeler pie from 14 per cent to 16 per cent. This is clearly a trend reversal from the last 10 years, where the share of scooters in the two-wheeler pie had been shrinking. Changing lifestyles among women, and the introduction of feature-rich, high-quality scooters possibly has much to do with the revival in demand The entry segment made up of basic 100 cc bikes -Had started slowing two years ago, and during the year in review, sales in this segment were down by more than 15 per cent. This could be attributed to the fact that deluxe segment bikes have become affordable on account of a 4 per cent excise cut, 1 per cent reduction in CST and the special package of reduction in excise duty in December, which most manufacturers passed on to the consumers. The deluxe segment-made up of value for money and feature-rich bikes in the 100-125 cc category-grew by 15.2 per cent. The 125-250 cc category-grew at 8.8 per cent. The pace of growth has fallen from last year's levels. There is no doubt that the higher interest rates have brought down growth. Nevertheless, this segment was still able to clock a growth rate in high single digits mainly because of the excitement caused by a slew of new models that

came into this segment during the year. The bigger story, of course, is that buyers in small-town India and rural India, as well as employees of the state and Central government, were relatively less affected by the slowdown, and this benefitted the two wheeler industry. The legend of Hero Moto Corp (previously Hero Honda)

What started out as a Joint Venture between Hero Group, the world's largest bicycle manufacturers and the Honda Motor Company of Japan, has today become the World's single largest two wheeler Company. Coming into existence on January 19, 1984, Hero Moto Corp (previously Hero Honda) Motors Limited gave India nothing less than a revolution on two-wheels, made even more famous by the 'Fill it - Shut it - Forget it ' campaign. Driven by the trust of over 5 million customers, the Hero Moto Corp (previously Hero Honda) product range today commands a market share of 48% making it a veritable giant in the industry. Add to that technological excellence, an expansive dealer network, and reliable after sales service, and you have one of the most customer- friendly companies.

Customer satisfaction, a high quality product, the strength of Honda technology and the Hero group's dynamism have helped HHML scale new frontiers and exceed limits. In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We will continue to make every effort required for the development of the motorcycle industry, through new product development, technological innovation, and investment in equipment and facilities and through and through efficient management."

HERO MOTO CORP (PREVIOUSLY HERO HONDA) MISSION

Hero Moto Corp (previously Hero Honda)s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Moto Corp (previously Hero Honda) to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stakeholders.

VISION
Hero Moto Corp (previously Hero Honda) now the leader in the two wheeler industry. Leaders are not born, they evolve over time. It all started on the auspicious. Baisakhi Day the 13th of April 1984, when the Hero Moto Corp (previously Hero Honda) Motor Company joined hands. On its journey to take on the No. 1 morale, Hero Moto Corp (previously Hero Honda) created some prominent milestones.. This leadership has been achieved only because of its philosophy to excel in all areas. In fact, passion to excel is a credo of the entire Hero Moto Corp (previously Hero Honda) family and is a way of life in Hero Moto Corp (previously Hero Honda). The changing Scenario of increasing competition and the entry of new brands has made the credo even more relevant. It serves as a constant reminder to ensure excellence in providing service to the customer. They are providing outstanding customer service. It is in keeping with Hero Moto Corp (previously Hero Honda)s own passionate commitment to provide ultimate

customer satisfaction. Today, they consistently meet and exceed all requirement on quality, cost and delivery. The Board of Directors of The Hero Moto Corp (previously Hero Honda) Group Comprises of Mr. Brijmohan Lall Munjal Mr. Pawan Munjal Mr. Akio Kazausa Mr. Kazumi Yanagida Mr. Satyanand Munjal Mr. Om Prakash Munjal Mr. M P Wadhawan Mr. S P Virmani Mr. O P Gupta Mr. M. Sudo Mr. S Toshida Mr. N N Vohara Mr. Pradeep Dinodia Gen. ( Retd.) V P Malik Chairman Managing Director Joint Managing Director Director Director Director Director Director Director Director Director Director Director Director

OBJECTIVES
Hero Moto Corp (previously Hero Honda)s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Moto Corp (previously Hero

Honda) to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders

ACHIEVEMENTS AWARDS AND ACCOLADES

Year Awards & Recognitions 2009
ET Awards for Corporate Excellence - Hero Moto Corp (previously Hero Honda) is the winner of the Company of the Year" award for 2008 - 09. NDTV Profit Business Leadership Award 2008 - Hero Moto Corp (previously Hero Honda) Wins the Coveted "NDTV Profit Business Leadership Award 2008" Top Gear Design Awards 2008 - Hunk Bike of the Year Award NDTV Profit Car India & Bike India Awards - NDTV Viewers Choice Award to Hunk in Bike category India Times Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards - Customer and Brand Loyalty Award in Automobile (two -wheeler) sector Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation) - Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards Bike Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the year TNS Voice of the Customer Awards:

2008
No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe No. premium motorcycle CBZ Xtreme

2007

The NDTV Profit Car India & Bike India Awards 2007 in the following category: Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc category) "Bike Technology of the Year" - Glamour PGM FI "Auto Tech of the Year" - Glamour PGM FI by Overdrive Magazine. "Bike of the Year" - CBZ X-treme by Overdrive Magazine. Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine Most Trusted Company , by TNS Voice of the Customer Awards 2006. CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006. 2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed companies. No. 1 in automobile industry by TNS Corporate Social Responsibility Award. Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2006: Splendor Plus (Executive) CD Deluxe (Entry) Pleasure (Gearless Scooters) Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey 2006. Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet - American Express Corporate Awards 2006. Hero Moto Corp (previously Hero Honda) Splendor rated as India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006. Certificate of Export Excellence for outstanding export performance during 2003-04 for twowheeler & three- wheelers - Complete (Non SSI) by Engineering Export

Promotion Council.The NDTV Profit Car India & Bike India Awards 2006 in the following category: Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever (up to 150 cc category) Bike of the Year - Glamour (up to 125 cc category) NDTV Viewers' Choice Award to Glamour in the bike category

2005
Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC in the 'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI National Award for Excellence (Second) in Cost Management 2004 in the private sector category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the period 1991-2005.

2004
Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance. Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR Excellence. ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of Company Secretaries of India.

2003

Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). Most Respected Company in Automobile Sector by Business World. Bike Maker of the Year by Overdrive Magazine.

2002
Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading Companies Award (4th Rank amongst the top 10 Indian companies). Company of the Year of ET Awards for Corporate Excellence. Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency' category, ranked 6th in 'Overall Best Investor Relations' category, by Asiamoney. Highest Wealth Creating Company of the Year Award by the Money. GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance.

2001
Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment. 1999 National Productivity Award for the Best Productivity Award in the category of Automobile & Tractor presented by Vice President of India. 1995 The Analyst Award 1995 presented to Hero Moto Corp (previously Hero Honda) Motors Ltd. on being ranked 9th amongst the most investor rewarding companies in India. 1995 National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of India). 1991 Economic

Times-Harvard Business School Award for Corporate Performance to Hero Moto Corp (previously Hero Honda) Motors Ltd.

History Of Company 1984

The Company was Incorporated on 19th January, at New Delhi. The Company Manufacture motor cycles up to 100 cc capacity. The Company was promoted by Hero Cycles (P) Ltd. (HCPL).

The Company entered into a technical-cum-financial collaboration agreement with Honda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish complete technical information and know-how and trade secrets and other relevant data. Hero Moto Corp (previously Hero Honda) CD-100 is the first four stroke motorcycle to be introduced in India in 100cc range. Its most attractive features are fuel efficiency and its light weight. CD-100 will be equipped with electronic ignition system, illuminated speedometer, 4 speed gear box, neutral and flasher indicators, etc. 15 No. of equity shares subscribed for by the promoters, etc. In November, 119,99,985 No. of equity shares issued at par of which 71,99,985 shares reserved for allotment as under: (i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and Bahadur (ii) (iii) Chand Investments (P) Ltd.

31,20,000 shares to Honda Motor Co. Ltd., Japan and 9,59,987 shares to friends and association of promoters. Out of the balance 48,00,000 shares, 2,40,000 shares were reserved for subscription by the employees of the Company and 96,000 shares by business

associates. The remaining 44,64,000 shares were offered at par for public

subscription during November.

1985
The Company embarked on its 2nd phase of expansion of increasing its installed capacity from 1,20,000 to 1,50,000 vehicles per annum by the addition of several critical aliminium and steel components.

1986
36,00,000 rights equity shares issued at par in prop. 3:10.

1987
The Company offered 6,00,000 - 15% secured redeemable non-convertible debentures of Rs 100 each for cash at par on rights basis in the proportion 1 debenture: 18 equity shares. Another 3,00,000 - 15% debentures were allotted to retain oversubscription. Thedebentures were to be redeemed at a premium of Rs 5 per debenture on the expiry of the 7th year from the date of allotment of the debentures 3,75,000 rights equity shares issued at par in prop.3:10

1989.
The Company introduced a new model "Sleek" during July.850 No. of equity shares forfeited.

1990
The Company was planning to launch a new model motor cycle-CD 100 SS sutiable to semi-rural conditions. In the domestic market the Company was

reported to have a market share of 46%.- 850 forfeited shares reissued.

1994
The Company proposed to expand the capacity of existing plant at Dharuhera to

2,40,000 nos. per annum. Another plant with an installed capacity of 1,50,000 nos. per annum at Gurgaon Industrial Estate was being set up. The Company issued 39,79,500 bonus shares to the existing shareholders in the ratio of 1:4. The Company also issued 28,557 number of fractional coupons representing 14,250 shares against which shares shall be allotted to presenting the same for consolidation and allotment. The Company's production and turnover increased to 1,83,490 motorcycles and Rs.483.85 crores respectively due to growth in demand for two wheelers and declining inflation.

1995
14,420 bonus shares issued by way of consolidation of fractional coupons. - A new Technical Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan for the period up to the year 2004 which includes technology related to models of higher Engine displacement. The Company allotted 39,79,500 No. of Equity Shares of Rs. 10/- each as Bonus shares on 7th February, by way of capitalization of General Reserves. The Company had issued 28557 No. of Fractional Coupons representing 14.250 shares against which the Shares shall be alloted on presenting the same for consolidation and allotment.

1997
Hero Moto Corp (previously Hero Honda) Motors has launched its newest motorcycle, the Street, a 100 cc bike designed for use in congested urban traffic conditions. Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML) has set up a new motorcycle plant in Gurgaon, near Delhi for the manufacture of the Honda Super Cub 100 cc step thro bike. Hero Moto Corp (previously Hero Honda) has set up a new state-of-the-art plant, heralding a new phase of development of motorcycle industry in India, to provide the most modern and technologically

advanced production facilities. Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has set up a plant in Brazil for manufacturing hero winner scooters. A new step thru model `Street-100' with unique feature was launched on 24th January.

1998
The company proposes to increase the share capital to 5 crore equity shares of Rs. 10 each, 4 lakh cumulative redeemable preference shares of Rs. 100 each and 4 lakh cumulative convertible preference shares of Rs. 100 each with power to increase or reduce it from time to time. The company further proposes to capitalise Rs. 19,96,87,500 from general reserve to share capital through issue and allotment of bonus shares. Altogether, 1,99,68,750 fully paid bonus shares will be allotted and distributed to members of the company holding equity shares of the company in the proportion of one bonus share for every fully paid equity shares of Rs.10 each. Motorcycles major Hero Moto Corp (previously Hero Honda) is considering entry into scooters in collaboration with partners, Honda Motors, after the Japanese company decided to walk out of Kinetic Honda, their scooter venture with the Firodias of Pune. Honda Motors recently pulled out of its joint venture with the Firodias in which it held a 51 per cent equity stake. Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd (KHML) have signed a five-year licence and technical assistance agreement under which KHML will continue to receive the technical knowhow, critical vehicle parts and access to Honda's markets even after the sale of Honda stake in KHML to Kinetic Engineering Ltd (KEL). - The Company changed the paradigm in two-wheelers by launching the most powerful

and fast bike- CBZ with a unique feature of Transient Power Fuel Control (TPEC) system. 23,962,500 bonus shares issued in prop. 1:1.

1999
Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML) and 20th Century Finance Corporation Ltd have signed a Memorandum of Understanding (MoU) for financing of Hero Moto Corp (previously Hero Honda) motorcycles. The company, a joint venture between Honda Motor Company of Japan and Hero group of India to produce four-stroke motorcycles, also aims to increase its share by 1 per cent to 38.6 per cent during the current fiscal. Leading two-wheelers manufacturer Hero Motors has formed a joint venture with Briggs Stratton of US to develop and manufacture four-stroke engines for mopeds and scooters in India, a top company. Honda Motor Company of Japan has decided to re-enter the scooter market in India as also foray into three-wheelers in a joint initiative with its existing joint venture company Hero Moto Corp (previously Hero Honda) Motors Ltd.

2000
Hero Moto Corp (previously Hero Honda) Motors Ltd. and Tata Finance Ltd. have signed a national tie-up agreement. The Company is the largest manufacturer of motorcycles in the country. The Company will relaunch its stepthru Stree Smart on Baisakhi 13th April. Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML), has launched an upgraded version of the existing step-through motorcycle - the Hero Moto Corp (previously Hero Honda) Street. The Company was ranked as the 9th Highest Value Creator among 12 industry groups within the Bombay Stock Exchange top 100 companies over a five year period (1994-99).

2001

Hero Moto Corp (previously Hero Honda) Motors Ltd. has launched a new 100cc motorcycle named `Passion'. The Company has secured shareholders' approval for splitting one equity share of Rs 10 each into five equity shares of Rs 2 each in the ratio of 1:5. Hero Moto Corp (previously Hero Honda) Motors Ltd. has become the largest seller of motorcycles amongst all Honda companies and ventures in the world by selling one million motorcycles during the current financial year. Credit rating Agency Crisil has reaffirmed outstanding `AAA' rating assigned to the proposed Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paper programme and fixed deposit programme of Hero Moto Corp (previously Hero Honda) Motors. Promoter-Chairman of the country's largest motorcycle manufacturing company, Hero Moto Corp (previously Hero Honda) Ltd, Brijmohan Lall Munjal has bagged the prestigious Ernst & Young Entrepreneur of the Year (EOY) award here on September 27.

PRODUCTS PROFILE
New Launches:

Glamour

Just4her

Glamour PGMFI

CD Deluxe

CBZ X-Treme

Achiever

Next Generation Pleasure of Motorcycling

Splendar NXG

Hunk Campaigns:

Karizama

We got a Good thing Going!

A Lot less Stops

One Litre Road

It's the Honda

Stretch That Litre. Save Petrol

Chartered Accountant

Over-Time

Best Seller

Economical Honours Others:

World's No.1!

Friends For Life

Nawab Najafgarh

of

Designed to Excel

Awaaz Consumer Awards '06

HEROHONDA BIKE MODELS Model: Achiver ES Model: Start Model: Kick Start Model: Electric Start Model: Glamour Kick Model: Hunk ES Start Model: New Karizma Model: Passion Plus Glamour Model: Glamour FI ES Model: Kick Start Model: Start Model: Pleasure Hunk Kick Glamour FI CBZ Xtreme Model: CD Dawn Achiver Kick Model: ES Model: CD Deluxe CBZ Xtreme

Model: Splendor NXG Model: Splendor NXG Model: Splendor Plus (Alloy) Model: Splendor Model: Start Model: Dawn Model: Splendor CBZ* Kick Model: CBZ* Electric Model: CD 100 SS Start Model: Karizma Model: Street Dlx Model: Passion Model: Splendor KS Super (Spoke) Super Model: Ambition Model: CBZ

Training is a process of learning a sequence of programmed behavior. It is application of knowledge & gives people an awareness of the rules and procedures to guide their behavior. It attempts to prepare them for an intended job. Development is a related process. It covers not only those activities, which improve job performance, but also those, which bring about growth of the personality; help individuals in the progress towards maturity & actualization of their potential capacities so that they become not only good employees but also better men & women. In organizational terms, it is intended to equip persons to earn promotion and hold greater responsibility. Training a for a bigger and higher job is development. In addition, this may well include not only imparting specific skills and knowledge but also inculcating certain personality and mental attitudes. Training is a short-term process utilizing a systematic & organized procedure by which non-managerial personnel learn technical knowledge & skills for a definite purpose. Development is a long-term process educational process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose. Training refers to instruction in technical and mechanical operations, while development refers to philosophical & theoretical educational concepts. Training is designed for non-managers, while development involves managerial personnel. Training & Development differ in four ways: "What" is learned?

 "Who" is learning? "Why" such learning takes place & "When" learning occurs The difference may be stated thus: Learning dimensions Who? Training Non-managerial personnel What? Technical & mechanical Theoretical, conceptual operations ideas Development Managerial personnel

Why?

Specific purpose

job-related General knowledge

When?

Short term

Long-term

NEED FOR BASIC PURPOSES OF TRAINING

1. To increase productivity-Instruction can help employees increase their level of performance on their present assignment. Increased performance often directly leads to increased operational productivity and increased company profit.

2. To improve quality- Quality increases may be in relationship to a company product or service, or in reference to the intangible organizational employment atmosphere. 3. To help a company fulfill its future personnel needs- when the need arises, organizational vacancies can more easily be staffed from internal sources if a company initiates and maintains an adequate instructional program for both its non-supervisory & managerial employees. 4. To improve organizational climate- Increased morale may be due to many factors, but one of the most important of the most important of these is the current state of an organization's educational endeavor. 5. To improve health & safety- Proper training can help prevent industrial accidents. A safer work environment leads to more stable mental attitudes on the part of employees. 6. Obsolescence prevention- Training & Development programs foster the initiative & creativity of employees & help to prevent manpower obsolescence, which may be due to age, temperament or motivation, or the inability of a person to adapt him to technological changes. 7. Personal growth An increased use of technology in production. Labor turnover. Employment of inexperienced labors. Old employees need refresher training to enable them to keep abreast of changing methods. Enabling employees to do the work in a more effective way. Reducing grievances and minimizing accident rates.

 Maintaining the validity of the organization & raising the morale of the employees.

Importance of training
Training is the corner stone of sound management, for it makes employees more effective & productive. It is actively and intimately connected with all the personnel or managerial activities. It is an integral part of the whole management program, with all its many activities functionally inter-related. There is an ever present need for training men so that new and changed techniques may be taken advantage of and improvements affected in the old methods, which are woefully inefficient. Training is a practical and vital necessity because it enables employees to develop & rise within the organization, and increase their "market value", earning power and job security. It moulds the employees ' attitudes and helps them to achieve a better co-operation with the company and a greater loyalty to it. Training, moreover, heightens the morale of the employees, for it helps in reducing dissatisfaction, complaints, grievances & absenteeism reduces the rate of turnover. Training is a widely accepted problem-solving device.

Steps in training programs

Discovering or identifying training needs
( through organizational operations manpower analysis)

Getting ready for the job

Preparation of the learner

(create, desire & prepare accordingly)

Performance try-out

Presentation of operations & knowledge (Application of training techniques)

Follow-up (rewards and feedback)

Objectives of employee training

The overall objective of training program is to fill in the gap between the existing and the desired level of knowledge, skills and aptitudes.

Objectives of training express the gap between the present and the desired performance levels. A well designed training program improves the personnel qualitatively. The main objectives of training may be defined as follows1. To impart basic knowledge- To impart the entrants the basic knowledge and skills required for efficient performance of definite tasks. It increases the skill, knowledge and operative competence of the employee, which help to increase the level of performance. 2. To function more effectively in their present position- It assists the employees to function more effectively in their present positions by exposing them to the latest concepts, information and techniques and developing the skills required performing their job in a better way. 3. To build up second line of competent officers- Whenever there is a change in a job position, the new incumbent from within can occupy the position more confidently. 4. To broaden the minds of senior managers- It corrects the narrow outlook caused by the over specialization. 5. To reduce supervision- It reduces the degree of supervision and makes the workers more independent & more responsible. It reduces cost of production and cost of supervision. 6. To improve the organizational environment- The purpose of training is to generate an improved organizational environment. Proper training
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reduces industrial accidents. Proper & safer living and working environment leads to more stable mental attitude on the part of the employees. It reduces the rate of absenteeism and labor turnover.

Principles of training
A sound training program must possess the following characteristics: 1. The training program should be designed so as to achieve pre-determined objectives and needs of the organization. 2. Training program should be less expensive. 3. Training program should be developed for all in the organization and not for a particular group. 4. Training program should be pre-planned and well organized, taking in view the objectives of training program. 5. Training program should be designed according to size, nature and financial position of the concern. 6. the program should be conducted by a senior and experienced supervisor or executive of the concern or by training director who is in charge of the training section under personnel department. 7. Theoretical and practical aspects of training should be given consideration while preparing a training program. 8. Training program should be designed taking in view the interests of both employer and employees. 9. The purpose of training is to develop the men and therefore more than one method may be followed for different groups. 10. The program should be flexible enough so that it may be adjustable to the changing circumstances.
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11. Training should be followed by a reward, so that employees may be motivated. 12. Sufficient time should be provided to practice what the employees have learned. 13.The trainee should be provided with 'feedback' on the progress he is making in utilizing the training he has received. Evaluation of effectiveness of training and management development programs Evaluation is an essential feature of all programs for the training of employees. The concept of evaluation is most commonly interpreted in determining the effectiveness of program in relation to its objectives. Management invests in training programs of the employees only with the expectation to see some tangible benefits derived there from. Evaluation can be done from various purposes. Objectives of training evaluation is to determine the ability of the participant in the training program to perform jobs for which they were trained, the specific nature of the training deficiencies, whether the trainees required any additional on the job training, and extent of training not needed for the participants to meet the job requirements. Evaluation of the training program may be done as follows: 1. To increase the effectiveness of the training programs while it is going on. 2. To increase the effectiveness of the programs to be held next time. 3. To find out to what extent the training objectives are achieved. 4. To help participants to get feedback for their improvement and efficiency.
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Evaluation of the training must be based on the following principles:

Evaluation specialist must be clear about goals and purposes evaluation. Evaluation must be continuous. Evaluation must be specific. Evaluation must provide the means and focus for trainers to be able to appraise themselves, their practices, and their products. Evaluation must be based on objective methods and standards. Realistic target dates must be set for each phase of the evaluation process. A sense of urgency must be developed, but deadlines that are unreasonably high will result in poor evaluation. There are various approaches to training evaluation. To get a valid measure of training effectiveness, the personnel manager should accurately assess trainee's job performance two to four months after completion of training. The four basic categories of outcomes can be measured Reaction: Evaluate trainee's reaction to the program. Learning: Did the trainee learn the principles, skills and fact that the supervisor or trainer wanted him to learn? Behavior: Whether the trainee's behavior on the job changed because of the training program? Results: What final results have been achieved? TRAINING COURSE of

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Training may range from highly specified instruction in the procedures to be adopted while performing a particular job to every general instruction concerning the economy and society. Training courses in general areas usually aim at making an employee a rounded individual, a happier worker and a good citizen, and at training him for "larger responsibilities" and future advancement. Such training exerts a remarkable influence on production and labor. From the employees point of view, output would increase with decrease in cost of production. From the point of view of labor, the employees' morale would improve; so would the rate of turnover, excessive absenteeism and accidents reduce. Training programs are no doubt expensive; but their worth to a growing concern cannot be over-emphasized. Training in general areas is given in such subjects as general and home economics, basic English, instruction in better writing and report drafting, reading using gauges, the operation of machines, public speaking and public relations, selling and communication with people. SUPPORT MATERIAL FOR TRAINING A variety of equipments are utilized to impart effective training. These are: 1. Lectures, conferences, seminars and staff-meetings, demonstrations, and short courses, through coaching. 2. Role-playing and job rotation. 3. Case or project studies and problem-solving sessions. 4. Use of pamphlets, charts, brochures. booklets, handbooks, manuals etc. 5. graphs, pictures, books, slides, movies, projectors, film strips, tape recorders. 6. Posters, displays, notice and bulletin boards.

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7. Reading rooms and libraries where specified books and journals are maintained for reference and use. 8. Under-study and visits to plants. 9. Correspondence courses under which knowledge about business law, statistics, industrial management, marketing, offices procedures, retailing and many other similar subjects may be imparted. 10.Teaching machines. 11.Membership of professional or trade associations, which offers new techniques and ideas to their members. TRAINING PERIOD The duration of training varies with the skill to be acquired, the complexity of the subject, a trainee's aptitude and ability to understand, and the training media used. Generally a training period should not be unduly long; if it is, trainees may feel bored, uninterested. The ideal session should not go beyond 2 to 3 hours at a stretch, with a break in between two sessions. If convenient, employees may be trained for a week or a fortnight for an hour or two, every day after work hours. The training period may extend from 3 weeks to 6 months or even more, depending upon the job requirements. The physical location of the program should be in pleasant surroundings away from the noise and tension of the work place. TRAINING FOR DIFFERENT EMPLOYEES Employees at different levels require training. Unskilled workers require training in improved methods of handling machines and materials to reduce the cost production and waste and to do the job in the most economical way. Such
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employees are given training on the job itself; and the training is imparted by their immediate superior officers. Semi-skilled workers require training to cope with the requirements of an industry arising out of the adoption of mechanization, rationalization and technical processes. These employees are giving training either in their own sections or departments, or in segregated training shops where machines and other facilities are usually available. Training is usually imparted by more proficient workers, bosses or inspectors, Training methods include instruction in several semi-skilled operations because training in one operation only creates difficulties in adjustments to new conditions, lend the color of specialization to a job and makes work somewhat monotonous for an individual. Skilled workers are given training through the system of apprenticeship, which varies in duration from a year to three or five years. Such training is also known as tradesman or craftsmen training, and is particularly useful for such trades in industry which require highly sophisticated skills- as in carpentry, drilling, boring, planning etc. Such programs are usually conducted in training centers and industry itself. Supervisory staff needs training most, for they form a very important link in the chain of administration. The training programs for supervisors must be tailormade to fit the needs of an undertaking. Their training enables supervisors to cope with the increasing demands of the enterprise in which they are employed and to develop team spirit. Supervisors' training may include the supply of necessary reading material, job rotation to give them a wide- in plant experience, holding of staff meetings, visits to other industrial units, participation in the work of other departments, lectures and teaching, roleplaying, case studies and conferences
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METHODS/ TECHNIQUES
Classification of training
methods

ON THE JOB OTHER TRAINING AND METHODS

DEMONSTRATION

APPRENTICESHIP

EXAMPLES

VESTIBULE

SIMULATION

CLASSROOM METHODS ASSOCIATIONS AUDIO-VISUAL AIDS

LECTURES

CONFERENCES CASE STUDY ROLE-PLAYING PROGRAMMED INSTRUCTION

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ON-THE-JOB- TRAINING It is the most common, the most widely used and accepted, and the most necessary method of training employees in the skills essential for acceptable for job performance. An employee is placed in a new job and is told how it may be performed. It is primarily concerned with developing in an employee a repertoire of skills and habits consistent with the existing practices of an organization, and with orienting him to his immediate problems. Employees are coached an instructed by skilled co-workers, by supervisors, by the special training instructors. They learn the job by personal observation and occasionally handling it. There are variety of OJT methods, such as coaching' or understudy; job rotation; and special assignments. Job instruction training(JIT) This method requires skilled trainers, extensive job analysis, training schedules, and prior assessment of the trainees job knowledge. This method is also known as training through step-by-step learning. It involves listing all necessary steps in the job, each in proper sequence. The actual training follows a four step process : The preparation of the trainee for instruction. Presentation of the instructions, giving essential information in a clear manner. Having the trainee try out the job to show him each step of the job. Encouraging questions and allowing the trainee to work along and the trainer follows up regularly. The JIT method provides immediate feedback on results, quick correction of error, and provisions of extra practice when required.

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Vestibule training (training-center training) It is a classroom training, which is often imparted with the help of the equipment, and machines, which are identical with those in use in the place of work. This technique enables the trainee to concentrate on learning the new skills rather than on performing an actual job. Theoretical training is given in classroom, while the practical work is conducted on the production line. It is a very efficient method of training semi-skilled personnel, particularly when many employees have to be trained for the same kind of work at the same time. Training is generally given in the form of lectures, conferences, case studies, role-playing and discussion. Demonstration and examples(learning by seeing) The trainer describes and displays something, as when he teaches an employee how to do something by actually performing the activity himself. Demonstrations are very effective In teaching because it is much easier to show a person how to do a job than to tell him or ask him to gather instruction from the reading material. Demonstration are used in combination with lectures, pictures, text materials, discussions etc. Demonstration are particularly effective in the training for the acquisition of skills; but their usefulness is limited when it is a question of training management personnel. Simulation Simulation is a technique, which duplicates, as nearly as possible, the actual conditions encountered on a job. Trainee interest and employee motivation are both high in simulation exercise because the actions of a trainee closely duplicate real job conditions. This training is essential in cases in which actual on-the-job practice might result in a serious inquiry, a costly error, or the destruction of valuable materials or resources.
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Apprenticeship For training in crafts, trades and in technical areas , apprenticeship training is the oldest and most commonly used method. A major part of training time is spent on-the-job productive work. Each apprentice is given a program of assignments according to a pre-determined schedule, which provides for efficient training in trade skills. Classroom or off-the-job methods
It means training is not the part of everyday job activity. The actual location may be

company

classrooms or in places which are owned by the company. These methods consists of: Lectures Conferences Group discussions Case studies Role-playing Programmed instructions Laboratory training

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TRAINING MODEL

Implementation of training
Once the training program has been designed, it needs to be implemented. Implementation is best with certain problems. Firstly, most managers are actionoriented and frequently say no to training efforts. Secondly, there is problem of locating suitable trainers within an organization. Any training program implementation involves action on the following lines: Deciding the location and organizing training and other facilities. Scheduling the training program Conducting the program Monitoring the progress of trainees

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Why training fails? The following factors have been regarded as the main reasons for failure of training programs: The benefits of training are not clear to the top management. The top management hardly rewards supervisors for carrying out effective training. The top management rarely plans and budgets systematically for training. The middle management, without proper incentives from top management, does not account for training in production in production scheduling. Without proper scheduling, first line supervisors have difficulty in production norms if employees are attending training programs. Behavioral objectives are often imprecise. Training external to the employing unit sometimes teaches techniques on methods contrary to the practices of the participants' organization. Timely information about external programs may be difficult to obtain. Trainers provide limited counseling and consulting services to the rest of the organization

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Improving effectiveness of training The training program can be mad more effective and successful if the following hints are considered: Specific training objectives should be outlined on the basis of the type of performance required to achieve organizational goals and objectives. Attempt should be made to determine if the trainee has the intelligence, maturity, and motivation to successfully complete the training programs. The trainee should be helped to see the need for training by making him aware of the personal benefits he can achieve through better performance. The training program should be planned so that it is related to the trainee's previous experiences and background. Attempts should be made to create organizational conditions that are conducive to a good learning environment. If necessary, a combination of training methods should be selected so that variety is permitted and as many of the senses as possible are utilized. It should be recognized that all the trainees do not progress at the same rate. If possible, the personal involvement or active participation of the trainee should be got in the training program. As the trainee acquires new knowledge, skills or attitudes and applies them in job situations, he should be significantly rewarded for his efforts.
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 The trainee should be provided with regular, constructive feedback concerning his progress in training and implementation of the newly acquired abilities. The trainee should be provided with personal assistance when he encounters learning obstacles.

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Purpose and objective of management development Executive development is an attempt at improving an individual's managerial effectiveness through a planned and deliberate process of learning. For an individual this means a change through a process of planned learning. This should be the common and significant aim of development attempts from the point of view of the trainer and the trainee in an organizational setting. "All the development is self development. It must be generated within the man himself. Development is highly individual. The development of an individual is due to his day-to-day experience on a job. Any activity to designed to improve the performance of existing managers and to provide for a planned growth of managers to meet future organizational needs is management development. The change in the individual must take place in those crucial areas, which can be considered as output variables: Knowledge change Attitude change Behavior change Performance change End-operational results

The organizational aims of management development are to secure the following valuable end-results:
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 Improvement in technical performance. Improvement in supervision Improvement in inter-departmental co-operation Highlighting an individual's weakness Attracting good men Facilitating practices. Ensuring that the qualifications of key personnel become better known Creating reserves in management ranks Marking an organization more flexible by an increased versatility of its members Improving organizational structure Stimulating junior executives to do better work Keeping the company abreast of technical and economic conditions 'Broadening' key men in the middle cadre Objectives of management development To develop managers to perform better on their present assignments To prepare them for higher assignments To provide a steady source of competent persons at all levels to meet future organizational needs To help them grow fast To prevent obsolescence of managers sound "promotion-from-within" policies and

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 To replace elderly executives, who have risen from the ranks, by highly competent and academically qualified professionals To create conditions and a climate which contribute to the growth process To create an understanding of the methods and problems of management To enable candidates to understand the problems of a business organization To indicate how to apply to practical problems the knowledge of the physical and social aspects of business problems and management. Causes or factors of management development The rapid rate of technological and social change in society has necessitated the training of managers so that they may cope with these development The introduction of automation, intense market competition from foreign countries, the growth of new markets in the under developed countries. Increased recognition by business and industrial leaders of the social and public responsibilities of management has

necessitated the development of managerial personnel The increased size and complexity of most organizationsgovernmental, industrial, commercial, on-profit public servicesrequire trained managers The frequent labor-management strife have necessitated the services of trained personnel
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 The changes in socio-economic forces, including changes in public policy and the concepts of social justice, industrial democracy.

Need for executive development in Indian context Personnel in sectors as engineering and steel, coal, fertilizer, oil and cement industries need training not only in the functional areas of management but also need to acquire a thorough knowledge of the sector. Management resource mobilization towards professionalizing such public utilities as water supply, power distribution, transport and communications. for agriculture and industry are dependent on the efficient functioning of these utilities. Government and civic offices organized to render public services have been untouched by the management movement Management principles and techniques need to be introduced in other areas of national economy. Public administration is a vast sector, which needs management attention. Management development programs for all those who are engaged in positions above the supervisory level of operations. Importance of management development The development of the full potential of all those who are under their command as a prime responsibility

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 Providing for the present an future needs of the firm of managerial talent by establishing, operating and improving management training and development scheme. Taking account by regular appraisal of how successful managers are developing their own subsidiaries Providing opportunities for every manager to take an active part in his own development Developing all parts of the scheme together as a consistent an orderly whole, in line with the company's objectives. Management development concepts Some of these important concepts are: 1. There is no time limit for learning. Management training is not a "one shot" affair but continues throughout an executive's whole professional career. 2. There always exists some gap between actual performance and capacity, which provides considerable opportunity for improvement. A large number of employees do operate below a pre-determined standard, which their training aptitude desires of them. If they get further training and acquire additional technical knowledge in management, in communication and in organizational affairs, they are bound to work faster and more efficiently, actively, and productively. 3. There are certain forces, which may retard further growth, but these may be offset or the direction of their movement changed. 4. Increased understanding of others, their behavioral attitude and of oneself definitely aid in managing and contributing to personal development, which is needed to increase and expand managerial effectiveness.
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5. Development seldom takes place in a completely peaceful and relaxed atmosphere. Growth involves stresses and strains. "Adversity is the mother of invention." It is because of errors and some failures that one is impelled to try and succeed in one's mission. 6. Development requires a clear-cut setting of the objectives and goals which are to be achieved or attained, and the ways and methods of achieving these. 7. Participation is essential for growth. Active learning and effort are needed. 8. Feedback from a superior to a subordinate, and from a group to an individual is necessary for the recognition of shortcomings and for keeping oneself in touch with the progress that ahs been achieved. 9. An important responsibility in the management of personnel is that of development. Executive development process The object of management development is to influence and modify the behavior of the managers in operation, it is necessary that in framing a management development program for specified managerial group, the following things are involved: 1. Identify the pattern of behavior at which the program is aimed at which it seeks to influence and modify. 2. Identify the causes the impulses, horizontally up and down the enterprise, which blend to give rise to the pattern of behavior. 3. Identify the nature of the exposure- the impulses that must be introduced into the system-through the development program
4. The program must take care to throw impulses into the system in a

manner that generates the urge to behavior changes from within the
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trainee manager by the process of evolving rather than an imposition from outside.

FACTORS INHIBITING MANAGEMENT DEVELOPMENT

Some of the factors, which hamper a management development program, are: Job security of the employees, its stability, and pension; these slow down the mobility of employees and check the recruitment of younger people. Supervisors at different levels, especially in the middle management, often feel trapped. Home ownership, home-sickness, close ties with one's family, community and social activities inhibit development to a large extent; and when these are accompanied by the absence of job security and chances of promotion, the employees tend to stress the non-job aspects of their lives. Relations between superiors and subordinate are often not conducive to management development.

Basic requisites for the success of management development programs

1. The top management should accept responsibility for getting the policy of development executed. 2. Management development is essentially a "line job", it takes place on the job and involves both the man and his boss. 3. Every manager must accept direct responsibility for developing managers under his control on the job, and a high priority should be given to his task. 4. Management development must be geared to the needs of the company and the individual.
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5. A policy of promotion from within is a necessary incentive for managers to develop in an organization 6. Management development starts with the selection of the right materials for managerial ranks. It is essential to ensure that really good material is fed into the program at the entry levels. 7. There should be a realistic timetable in accordance with the needs for managerial personnel over a sufficiently long period and the resources which are available and which will be required.

Administering a management development program

While administering the program, due consideration should be given to the following points: 1. It should support a systematic career planning for managerial personnel, otherwise the frustrated trainees might seek opportunities elsewhere and the whole investment made in training programs would go waste. 2. Management development does not comprise involvement in a series of structured courses, but there should also be an active interaction between the trainee and the management. 3. Training program should cover, as far as possible, every manager, capable of showing potential for growth. 4. The entire program should be properly planned. The trainees should take part in it. The company should not normally allow any manager to opt out of a training program.

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TECHNIQUES OF MANAGEMENT DEVELOPMENT

1. On-the-job techniques This method of training & development has its own value. It is inexpensive and saves productive hours. Most popular techniques under this type are: The coaching or guided method Job rotation method Participation in deliberations of the Boards and committees The coaching method Coaching is a method, which is used in developing managerial thinking processes as well as operative skills. In coaching, the superior plays the role of the guide and the instructor. The coach sets some mutually agreed upon goals and tell the trainee what he wants to be done, follows up suggestions, and corrects errors. It has certain advantages: It requires the least centralized staff co-ordination, for every executive can coach, his men even if no management development program exists. Periodic feedback and evaluation are also a part of coaching, which yield immediate benefits to an organization, to the coach and to the subordinate. Coaching will work well if the coach provides a good model with whom the trainee can identify; if both can be open with each other; if the coach accepts his responsibility fully; if he provides the trainee with recognition of his improvement and suitable rewards.

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Job rotation or channel method of development

It represents an excellent method of broadening the manager or potential manager, for turning specialists into generalists. It is designed for beginning level managers while planned progression is more likely to occur at higher managerial levels. The emphasis is on diversified instead of specialized skills and knowledge. Its advantages are: It breaks down departmental provincialism for everyone is moved from one to another. It rather develops inter-departmental cooperation. It injects new ideas into the older departmental personnel who may otherwise fall in a rut. New concepts are infused into them and they are diffused throughout an enterprise. It ensures the avoidance of the problem, which arises when a newly promoted manager is required to supervise his former peers. It makes possible for managers to compare one man with another, and gives everyone an equal chance for advancement. Each managers abilities and talents are best tested in a variety of jobs, so the enterprise can secure his best utilization in the ultimate assignment.

Understudy assignment or attachment method

An understudy is a person who is under training to assume, at a future time, the full duties and responsibilities of the position currently held by his superior. A manager from amongst a large number of subordinates, or several individuals may pick up an understudy. Such an understudy learns the
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complexities of the problems and how to solve them, learns also the process of decision making and investigation and making written recommendations to his superior. The advantages of this method are: It is practical and quick in training persons for greater responsibility for it lays emphasis on learning by doing. The learners interest and motivation are high and the superior is relieved of his heavy workload. It ensures continuity of management facilities even when the superior leaves his position. Participation in deliberations of the junior board and committees or the multiple-management technique It is a technique whereby juniors are assigned to board or committees, by the chief executive. The juniors get an opportunity to share in a managerial decision-making, to learn by watching others and to delve into specific organizational problems. It has several advantages: It gives Board members an opportunity to gain knowledge on various issues. It helps identify those who have executive talent. Multiple judgments are obtained on each individual through the Board rating system. It is relatively inexpensive method of development. It permits a considerable number of managers to participate in certain activities within a reasonable period of time. 2. Off-the-job techniques A number of on-the-job management development programs are in vogue, they are considered inadequate for a number of reasons. Hence, off-the-job
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techniques are needed. There is wealth of executive development techniques that managers can partake in off the job. Of these the more popular ones are: The case study method Incident method Role-playing In-basket method Business or management game Sensitivity Training Simulation Grading training Conferences Lectures

Incident method
The central aim of this method is to stimulate self-development in a blend of understanding that is essential for productive interaction. Under this method, group members address questions to the discussion leader. The general trend of questioning is to find out about the what, when, where and how of the situation in which an incident developed, and who was present at that time. After the collection of data , it is necessary to isolate the most important items for decision-making. Role playing It is the concept of creating a more realistic situation, usually one of human problems and conflicts, and then acting out the various parts. The value of roleplaying is:

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 It requires the person to carry out a thought or decision he may have reached. It permits the practice of carrying out an action and makes it clear that good human relations require skill. It makes a person aware of the feeling of others. It helps in developing a fuller appreciation of the important part played by feelings.

In-basket method
Each team of the trainees is given a file of correspondence bearing on a functional area of management. Each individual studies the file and makes his own recommendations on the situation. If further information is required by him, it is supplied by the members of the team. Later, the observations of each individual are compared and conclusion on different functional areas reached; and these are put down in the form of a report. The merits are: Decisions are rapid, feedback is objective, and further decisions are based on the feedback o f earlier decisions. Decision-making is by a group that consists of managers and specialists from different departments. An abstract and complex situation is given the semblance of a real world situation, and this illusion facilitates the learning process. Tem co-operation can be fostered and departmental conflicts softened down and/or eliminated. Business or management game Business games are classroom simulation exercises in which teams of individuals compete against one another or against an environment in order to
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achieve a given objective. These games are designed to be representatives of real life conditions. Under these, an atmosphere is created in which the participants play a dynamic role, and enrich their skills through involvement and simulated experience. The advantages are: There is usually a great sense of enjoyment in playing the game, and helps in developing the problem solving skills. Helps in developing leadership skills and for fostering co-operation and teamwork. It helps in changing attitudes. The participant becomes more tolerant. Sensitivity, laboratory or Hero moto corp training It is a group experience designed to provide maximum possible opportunity for the individuals to expose there behavior, give and receive feedback, experiment with new behavior and develop awareness of self and of others. It tries to provide: Managers with increased awareness of their own behavior and of how others perceive them. Greater sensitivity to be behavior of others, and increased understanding of group process. A clarification and development of personal values and goals consonant with a democratic and scientific approach to problem of social and personal decision and action. Simulation It is a training technique, which indicates the duplication of organizational situations in a learning environment. It is a makeup of a real thing. This technique has been used for developing technical and interpersonal skills. The
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advantages of simulation are the opportunities to attempt to 'create an environment' similar to real situations the managers incur, without high costs involved should the action prove undesirable. Grid training The managerial grid is an organizational development technique. The grid represents several possible leadership 'styles'. Each style represents a different combination of two basic orientations-concerns for people and concern for production. The management-training program is built around this managerial grid. It aims at developing open confrontation of organizational problems and high-people-high-production leaders.

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63

The method adopted for carrying out any project is called as Research methodology. For

this project the study is conducted among the employees of Hero moto corp Two wheelers . Research methodology used in this project is based on following factors : Sources of data Primary (questionnaire) and secondary data (information regarding both organizations through internet & booklets). Data collection method & techniques Questionnaire and interviews. Sampling plan Target population All the employees of Hero moto corp Two wheelers , Agra. Sampling method Random sampling. Sample size 50 Area of population Hero moto corp Two wheelers Agra.

RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a particular study. A Research design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research Design is broadly classified into three types as Exploratory Research Design Descriptive Research Design Hypothesis testing Research Design

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On the basis of the objective of study, the study which is concerned with describing the characteristics of a particular individual or of group of individual under study comes under Descriptive Research design. Descriptive Research Design:In this research design the objective of study is clearly defined and has accurate method of measurement with a clear-cut definition of population that is to be studied.

Questionnaire Design
The questionnaire for this survey includes both open ended and close ended questions.

Why questionnaire
Now a days questionnaire are commonly used to collect data that is specific are crucial to the success of business venture. With out doubt questionnaire allow to gather information that can be found else where from say secondary information such as Manuals, Books and internet resources this is because information collected is fresh and unique. Questionnaire helps in identifying the following key points. Study about Organizations Training & Development system Employees awareness about Training & Development system Employees attitude towards existing Training & Development system

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Way of issuing questionnaire

It was personal interview (face to face). It helped in directly asking the question to data available through this is a time consuming processed interviewers have little time to think. Target people: - Officers & Workmens RESEARCH DESIGN AND METHODOLOGY Research methodology is a systematic way, which consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. The research is a process of involves a number of interrelated activities, which overlap and do rigidly follow a particular sequence. It consists of the following steps Formulating the objective of the study Designing the methods of data collection
Selecting the sample plan Collecting the data

Processing and analyzing the data Reporting the findings

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Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Reporting of Findings

RESEARCH STUDY
A research study for the project on Training & Development system this is done through questionnaire to employees. Research is a systematic and in depth study to find out the awareness and attitude towards PAR among employees. Analysis of data Analysis may be categorized as descriptive analysis and (inferential analysis is often known as statistical analysis) Descriptive Analysis: -

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Descriptive analysis is largely the study of distribution of one variable this study provide us profile of companies, workgroups and person & other subject on any of a multitude of characteristics such as size composition. Correlation Analysis: Correlation analysis studs the joint variation two or more variables for determining the amount of correlation between two or more variable. Inferential Analysis: Inferential analysis is concerned with the various tests of significance for testing hypothesis in order to determine with what validity data can be said to indicate some conclusion.

OBJECTIVE OF THE STUDY

To Study The training and development in Hero Moto Corp To Study and analysis the process of training and development Honda). To study and analys the training strategy of Hero Moto Corp (previously Hero Honda).
SAMPLING: Sample is Researcher collect needed information from various persons who are associated with this subject. When such associated persons are in new number research can get information from all of them in such some people among

in

Hero Moto Corp (previously Hero

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associated persons are selected and collect information from them. These selected persons represent the whole universe and are called sample Sampling unit The sampling for this research was Hero Moto Corp . Employees were available for interview. Sampling frame Sampling frame for this survey was least 10 officers & 10 workmens Sampling size Sample size for the objective (Training & Development system) sample size cover for the various departments such as P&A Department, Quality control, Design Department, Mig Department, Jaguar & SU 30, store Department, Security & Vigilance Department The sampling method used for this visit of Different Department was done by researcher Questionnaire Design The questionnaire for this survey includes both open ended and close ended questions. Why questionnaire Now a days questionnaire are commonly used to collect data that is specific are crucial to the success of business venture. With out doubt questionnaire allow to gather information that can be found else where from say secondary information
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such as Manuals, Books and internet resources this is because information collected is fresh and unique. Questionnaire helps in identifying the following key points. Study about Organizations Training & Developmentsystem Employees awareness about Training & Developmentsystem Employees attitude towards existing Training & Developmentsystem

Way of issuing questionnaire

It was personal interview (face to face). It helped in directly asking the question to data available through this is a time consuming processed interviewers have little time to think.

Target people: -

Officers & Workmens

Research study
A research study for the project on Training & Developmentsystem this is done through questionnaire to employees. Research is a systematic and in depth study to find out the awareness and attitude towards PAR among employees.

Description of live experience :-

The all time that I spend in HERO MOTO CORP (excellence in two wheelers ) was very tremendous for me. I gain lot of experience from HERO MOTO CORP . The organization has a dynamic structure that support the person to work with its full efficiency. The system of doing work in organization is very Relaxable and make comport to all employee that are attached to Hero moto corp .
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I gain lot of knowledge related to export documentation that is very important for me. I done lot of work related to export documentation and know about the all procedure of export & import of goods. I know about the all procedure that is important for shipment of goods. In the end I want to say my experience was vary knowledgeable & must for increase my knowledge.

Students contribution to organization : To maintain the file of employee records. To maintain the attendance register of the companys employee. To calculate the salary of the employees. To test the market piece. Work to see packing quantity and packing process. Help in some official work.

STATEMENT OF RESEARCH PROBLEM

To study of about Training & Development System of Hero moto corp Two wheelers Statement of research objectives Help employee overcome his weakness & improve ones his strengths & thus enable him to improve his performance & that of the Deptt. Generate adequate feedback & guidelines form the repotting officers to the employee. Contribution to the growth & development of the employee through helping him in realistic goal setting. Help in creating a desirable culture & traditions in the organization.
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 Help identifying employees for the purpose of motivating, training & developing them. Generate significant, relevant, free & valid information about employees

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Q1.Your Organization considers training as a part of organizational strategy. Do you agree with this statement? Response Agree Disagree Partly Agree Cant Say Total No. Of Respondants 13 1 4 7 25 52 4 16 28 100 Percentage

60 50 40 30 20 10 0 AGREE DISAGREE PARTLY AGREE CANT SAY

Series1

Interpretation:The above graph indicates that Organization considers training as a part of organizational strategy.

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Q 2. How many training programmes will you attend in a year? Response Less than 10 10 - 20 20 40 More than 40 Total No. of respondants 14 2 6 3 25 Percentage 56 8 24 12 100

60 50 40 30 20 10 0 LESS THAN 10 10 20 20 - 40 MORE THAN 40

Series1

INTERPRETATION:The above chart indicates that less training programmes are held in the organization.

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Q 3. To whom the training is given more in your organization? Response Senior staff Junior staff New staff No. of respondants Percentage 3 5 6 12 20 24 52 100

Based on requirement 13 Total 25

60 50 40 30 Series1 20 10 0 SENIOR JUNIOR NEW STAFF BASED ON REQMT.

INTERPRETATION:Training is provided on the basis of requirement.

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Q 4. What are all the important barriers to Training and Development in your organization? Response Time Money Lack of interest by staff Non-availability of skilled trainer Total No. of respondants Percentage 5 4 6 10 25 20 16 24 40 100

45 40 35 30 25 20 15 10 5 0

Series1

INTERPRETATION:The above graph indicates that the important barriers to Training and Development in the organization is Non-availability of skilled trainers.

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Q 5. Enough practice is given for us during training session? Do you agree with this statement? Respondants Strongly Agree Agree No. of respondants Percentage 14 2 56 8 24 12 100

Somewhat agree 6 Disagree Total 3 25

60 50 40 30 Series1 20 10 0 STRONGLY AGREE AGREE SOMEWHAT AGREE DISAGREE

INTERPRETATION:This graph indicates that enough practice is given for employees during training sessions.

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Q6. The training sessions conducted in your organization is useful. Do you agree with this statement? Respondants No. of respondants Percentage 60 20 20 0 100

Strongly agree 15 Agree Somewhat Disagree Total 5 5 0 25

70 60 50 40 30 20 10 0 STRONGLY AGREE AGREE SOMEWHAT AGREE DISAGREE Series1

INTERPRETATION:The above graph indicates that the training sessions conducted in the organization is useful.

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Q7. Employees are given appraisal in order to motivate them to attend the training. Do u a Respondants No. of respondants Percentage 56 24 12 8 100

Strongly Agree 14 Agree Somewhat Disagree Total 6 3 2 25

60 50 40 30 Series1 20 10 0 STRONGLY AGREE AGREE SOMEWHAT AGREE DISAGREE

INTERPRETATION:The above graph shows that Employees are given appraisal in order to motivate them to attend the training.

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Q8. What are the skills that the trainer should possess to make the training effective? Respondants No. respondants Technical skills People skills or Soft skills 8 6 32 24 24 of Percentage

Generalist makes better Personnel managers 6 than Specialist Fond of talking to people Total 5 25

20 100

35 30 25 20 15 10 5 0 TECH. SKILLS SOFT SKILL GENERALIST TALKATIVE Series1

INTERPRETATION:The above graph indicates that the trainer should possess technical skills to make the training effective
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Q9. What are the general complaints about the training session? Respondants Take away precious time of employees Too many gaps between the sessions Training sessions are unplanned Boring and not useful Total No. of respondants Percentage 4 10 6 5 25 25 40 15 20 100

45 40 35 30 25 20 15 10 5 0 Take away Too many gaps precious time of between the employees sessions Training sessions are unplanned Boring and not useful Series1

INTERPRETATION:The above graph indicates that there are two many gaps between the training sessions.

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Q10. Reason for shortage of skilled man power at workplace are : Respondats No. respondants Lack of planning Lack of support from senior staff 5 10 20 40 32 of Percentage

Lack of proper guidance and training at 8 workplace Lack of quality education at primary and 2 secondary level Total 25

100

45 40 35 30 25 20 15 10 5 0 Lack of planning Lack of support Lack of proper Lack of quality from senior staff guidance and education at training at primary and workplace secondary level Series1

INTERPRETATION:The above graph indicates that reason for shortage of skilled man power at workplace are lack of support from senior staff.
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FINDINGS

1. 2.

The total production of two wheelers is 1565 million in 2009-10 The estimated production of two wheelers million. during 2009-10 is 1856

3. 4. 5. 6. 7.

The total share of India in world import is nearly 6.54% in 2010. The total export of two wheelers is 570.10 million US$ in 2009. The estimated export of two wheelers is 35.54 US million $ in 2008 The total export of two wheelers is nearly 1.03% in world import. Hero moto corp Two wheelers Ltd. totally believes in 0 Defect product.

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RECOMMENDATIONS
Training programme can be accompanied with industrial tours, both internal and external faculties should play an important role in enhancing the working condition of the employee, as it may be possible that internal faculty may not be able to exchange new ideas & the mode of working. Training evaluation should be done at regular intervals and there should be regular interaction between the employees and HODs so as to bring transparency in providing training programme. Refresher training- a timely reminder of the concepts discussed in the training programme should be repeated from time to time so that the workers get a review of what they had learned. The development programme is regularly undertaken. The training & development program should be discussed with the employees and their suggestions should be incorporated. They should be asked as to what they require. There should be more & more communication between the top level management and the workers. Interpersonal relationships should be established so that workers can approach their superiors any time. There must be a proper Grievance Handling procedure which would result in overall satisfaction among the employees, increased loyalty & commitment towards the organization and increased morale & motivation level. More interesting methods of training should be incorporated like Roleplays, Hands-on exercises, visuals aids, animation movies, mental imagery, skits and drills.

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SUGGESTIONS

1. Awareness should be brought about in the employees to select those training needs which matches their job profile. Accordingly, the HOD might not be aware with some of the training needs required by his subordinates. Training needs must be decided in a joint consultation between the superiors and subordinates during their monthly meetings. 2. Learning peaks shortly after the end of the training program when the brain has an opportunity to absorb the new material. Thereafter, without reinforcement learning decays rapidly as much as 80% of the training is lost. Hence, regular meeting of the team, which underwent training together, should be conducted so that they can revise what they had learnt during the training and how they have utilized in their day-to-day work. 3. The manager before hand should brief the trainer about the students that he would be handling and what kind of training the department requires. 4. The manager also briefs the employees as to what they can expect from the training program and what would be taught to them. Thus, he acts as a link between the external faculty and his subordinates. 5. There should be a discussion of the trainer and the managers as to what changes has been seen in his subordinates and how it has improved their productivity. such kind of exercise would enable the organization to decide whether to continue with the trainer or hire a new trainer. 6. The system of communication should be improved. In order to improve the communication among the employees of the organization and to bring about the cohesiveness among the employees a series of interactive meetings can be organized.
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CONCLUSIONS
Overall the employees are satisfied with the training that is provided to them. They recognize the need and importance of training and are hopeful of receiving future trainings at regular intervals. The variations in training methods is very less. Old methodology of lectures, seminars and presentations is relied upon. The basic training of Safety, First aid and fire prevention is given to all the employees on a regular basis i.e. once in a year. The development programme is a regular feature in the organization. The evaluation and performance appraisal process has to be improved as indicated from the responses. 360 degree appraisal method can be used and more and more job-related tests should be conducted to evaluate the effectiveness of training. The employees have a strong sense of belongingness towards the company. They want to stay here and are happy with the facilities provided.

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BIBLIOGRAPHY

Organizational Behaviour- Stephen P. Robbins Personnel Management- C.B Mamoria &S.V. Gankar Journals like Human Capital, Business Today & Indian Journal of Training & Development. Internet sites- google.com and other corporate sites Studies Notes Questionnaire

WEB. Sites www.hero moto corp two wheelers .com www.google.com

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QUESTIONAIRE
Q1.Your Organization considers training as a part of organizational strategy. Do you agree with this statement? Response Agree Disagree Partly Agree Cant Say Total No. Of Respondants Percentage

Q 2. How many training programmes will you attend in a year? Response Less than 10 10 - 20 20 40 More than 40 Total No. of respondants Percentage

Q 3. To whom the training is given more in your organization? Response Senior staff No. of respondants Percentage

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Junior staff New staff Based on requirement Total

Q 4. What are all the important barriers to Training and Development in your organization? Response Time Money Lack of interest by staff Non-availability of skilled trainer Total No. of respondants Percentage

Q 5. Enough practice is given for us during training session? Do you agree with this statement? Respondants Strongly Agree Agree Somewhat agree Disagree Total No. of respondants Percentage

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Q6. The training sessions conducted in your organization is useful. Do you agree with this statement? Respondants Strongly agree Agree Somewhat Disagree Total No. of respondants Percentage

Q7. Employees are given appraisal in order to motivate them to attend the training. Do u a Respondants Strongly Agree Agree Somewhat Disagree Total No. of respondants Percentage

Q8. What are the skills that the trainer should possess to make the training effective? Respondants Technical skills No. of respondants Percentage

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People skills or Soft skills Generalist Personnel Specialist makes managers better than

Fond of talking to people Total

Q9. What are the general complaints about the training session? Respondants Take away precious time of employees Too many gaps between the sessions Training sessions are unplanned Boring and not useful Total No. of respondants Percentage

Q10. Reason for shortage of skilled man power at workplace are : Respondats Lack of planning Lack of support from senior staff Lack of proper guidance and training at workplace Lack of quality education at primary and secondary level Total
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No. of respondants

Percentage

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