PROJECT REPORT

ON A STUDY ON TRAINING AND DEVELOPMENT PRACTICES AT HCL TECHNOLOGIES

HCL
Submitted to: Mrs. Niti Chatterji Prof. HRM Submitted by: Rahul Rai(501304039) Rahul Madaan(501304038) Harshpreet Bhatia(501304021) Sakshi Pathak(501304042)
i

ACKNOWLEDGEMENT
Through this acknowledgement we express our sincere gratitude towards all those people who helped us in this project, which has been a learning experience. We are thankful to our project guide Mrs. Niti Chatterji for for giving us the opportunity to study this aspect of Human Resource Management. We appreciate the co-ordination extended by our friends and also express sincere thankfulness to the entire faculty members of Thapar School of Management, Dera Bassi for helping us with insights on the task and also assisting me for the same.

ii

TABLE OF CONTENT
Chapter- 1: INTRODUCTION 1.1 OBJECTIVE OF THE STUDY 1.2 PURPOSE OF THE STUDY 1.3 SCOPE OF THE STUDY 1.4 RESEARCH METHODOLOGY Chapter- 2: THEORETICAL PERSPECTIVE 2.1 PLANNING AND TRAINING ACTIVITIES 2.2 TRAINING INPUTS 2.3 AREAS OF TRAINING 2.4 LEARNING AND TRAINING 2.5 TRAINING POLICY 2.6 POSITIVE OUTCOMES OF TRAINING 2.7 TRAINING METHODS 2.8 OBJECTIVES OF TRAINING METHODS 2.9 CLASSIFICATION OF METHODS 2.10 TRAINING ORGANIZATION 2.11 EVALUATION OF TRAINING 2.12 IS TRAINING THE BEST MEDICINE? 2.13 NEW TRENDS IN TRAINING 2.14 TRAIN, DON'T TELL 2.15 TRAINING: MANTRA OF THE NEW MILLENNIUM Chapter- 3: COMPANY PROFILE Chapter- 4: SURVEY ANALYSIS 4.1 TRAINING EVALUATION Chapter- 5: CONCLUSION AND RECOMMENDATION 5.1 CONCLUSION 5.2 RECOMMENDATIONS

iii

Chapter-1 INTRODUCTION
William James of Harvard University estimated that employees could retain their jobs by working a mere 20-30 percent of their potential. His research led him to believe that if these same employees were properly motivated they could work at 80-90 percent of their capabilities. Behavioral sciences concepts like motivation and enhanced productivity could well be used for such improvements in employee output. Training could be one of the means to achieve such improvements through the effective and efficient use of learning resources. Training is the process of assisting a person in enhancing his efficiency and effectiveness at work by improving and updating his professional knowledge developing his personal skills relevant to his work and cultivating in him appropriate behavior and attitude towards his work and people he is working with. Development takes place as a result of training and essentially implies growth plus change. Thus, training and development go hand in hand. Training is a long-term investment in human resource using the equation given below: Performance = ability x motivation Training can have an impact on both these factors. It can heighten the skills and abilities of the employees and their motivation by increasing their sense of commitment and encouraging them to develop and use new skills. It is a

powerful tool that can have a major impact on both employee productivity and morale, if properly used. WHY IS THERE A NEED FOR TRAINING AND WHY HAVE WE CHOSEN TO STUDY THIS TOPIC? Organization viability and the transformation process The primary concern of an organization is its viability and hence its efficiency. There is continuous environmental pressure for efficiency, and if an organization does not respond to this pressure, it may find itself rapidly losing whatever share of the market it has. Employee training, therefore, imparts specific skills and knowledge to employees in order that they contribute to the organizations efficiency, and be able to cope with the pressures of the changing environment. Technological advances There has been tremendous development in industrial technology. Mechanization and automation of the plant is necessary for the organizations survival; hence, it has to train its employees for more skilled positions. New skills are required to operate new machinery, or familiarity with new processes and production techniques has to be introduced. Organizational Complexity With increasing mechanization, automation and development in technology, many organizations have emerged as complex organizations that produce a wide range of products or offer a wide range of services. This had led to complex problems of coordination and integration of activities. Eventually the

need for training and retraining is felt at the all levels in such organizations, from shop floor to top executives. Human Relations The growing complexity of organizations has led to various human problems, like alienation, inter-personal and inter-group problems. Hence, training in human relations is becoming extremely important for tackling these problems. Due to its great relevance in the current automated, mechanized and extremely competitive business environment, where skills are becoming obsolete faster than ever, we have chosen to study in detail the training and development needs of employees. My endeavor will be to gain an in-depth insight into the process of discovering, harnessing and developing of the human capital to the benefit of both the individual and the organization into days highly dynamic and competitive business world through a comprehensive study and analysis of the latest training and development techniques used by HCL Technologies, Noida.

1.1 OBJECTIVE OF THE STUDY

To evaluate the effectiveness of Training And Development programs conducted at HCL Technologies To suggest measures for improvement for Training and Development programs at HCL Technologies

1.2 PURPOSE OF THE STUDY

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

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

1.3 SCOPE OF THE STUDY

The study will be limited to the Training and Development Programs for Team Leaders and Team Members at HCL Technologies Chandigarh.

1.4 RESEARCH METHODOLOGY The base on which a study rests is the information that is embedded in it. The data for this study was obtained as a blend of both Secondary and Primary sources. Sources and Methods of Data Collection Primary Sources A sample size of 25 employees of HCL Technologies was taken, which consisted of 5 Team Leaders and 20 Team members. Primary Questionnaire- A questionnaire was designed and administered to the Employees drawn from various levels and various departments in the organization. Internal Information regarding the training policies and procedures was obtained through personal discussions with Trainers, Team Leaders, Team Members and HR manager. Secondary Sources Secondary data i.e. data which already existed was collected from two sources. Internal Sources

Books Training / HRD Manuals, Company reports, House Journals records etc.

External Sources -This mainly refers to Internet.

Data Analysis: The results of the survey have been tabulated and presented in the final report in form of bars and pie charts.

Chapter-2 THEORETICAL PERSPECTIVE

The effective functioning of any organization requires that employees learn to perform their jobs at a satisfactory level of proficiency. An effective organization wishes to have amongst its ranks individuals who are qualified to accept increasing responsibilities. So much so that organizations need to provide opportunities for the continuous development of employees not only in their present jobs, but also to develop their capabilities for other jobs for which they might later be considered. Training refers to the teaching/learning activities carried on for the primary purpose of helping members of an organization to acquire and apply the knowledge, skills, abilities and attitudes needed by that organization. Broadly speaking, training is the act of increasing the knowledge and skill of an employee for doing a particular job. Though it is true that unplanned learning through job experience helps development, the experience of most organizations is that it is advantageous to plan systematic training programmes of various types as a regular part of an adequate personnel development programme. Such programmes are definite assets in helping managers to learn correct job methods, to achieve a satisfactory level of job performance, and to acquire capabilities that would be valuable in possible future jobs.

2.1 PLANNING AND TRAINING ACTIVITIES

The following steps must form the basis of any training activity: 1. Determine the training needs and objectives. 2. Translate them into programs that meet the needs of the selected trainees. 3. Evaluate the results.

2.2 TRAINING INPUTS

There are three basic types of inputs: skills, attitudes, and knowledge. The primary purpose of training is to establish a sound relationship between the worker and his job- the optimum man-task relationship. Such a relationship is at its best when the workers attitude to the job is right, when the workers knowledge of the job is adequate, and he has developed the necessary skills. Training activities in an industrial organization are aimed at making desired modifications in skills, attitudes and knowledge of employees so that they perform their jobs most efficiently and effectively. SKILLS Training activities nowadays encompass activities ranging from the acquisitions of a simple motor skill to a complex administrative one. Training an employee for a particular skill is undertaken to enable him to be more effective on the job. For instance, new workers can be trained to achieve

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

2.3 AREAS OF TRAINING

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

10

in-company promotees, who have to be oriented to the demands of their requirements. Induction programs are based on the philosophy that the process of initial adjustment and entry to the organization is a difficult process. Unless a conducive and supportive atmosphere facilitates it, it would leave the new entrant with several uncertainties in his mind and make his assimilation in organizational life more complex and difficult. Many organizations are conscious of this and devote considerable effort to make the initial entry phase a pleasant and cordial one. Training In Particular Skills Training of employees for particular skills is undertaken to enable the employee to be more effective on the job. It is a here-and-now proposition, somewhat like induction training, which does not have a very significant development aspect to it. Its aim is narrow-to guarantee a certain contribution to the job, for instance sales training and machine skills. Human Relation Training This is a broad category embracing many different aspects. Self-learning and inter-personnel competence can be included in this category-all concerned with generally the same theme. It stresses a concern for individual relationships, for feeling and treating people as human beings, rather than as machines. Not only is this concern and awareness in ones attitudes and behavior conducive to better work -place relations, but also to enhanced productivity. This category of training is oriented towards

11

the development of the individual and consequently the organization s efficiency in terms of better teamwork. Problems Solving Training Many in-company programmes also revolve around organizational units, like divisions of branches, which generally handle a product line. The practice is to hold together all managerial personnel in a particular division/ branch from the both the headquarter and the field of offices and discuss common problems and solutions across the table. This not only helps solve problems, but also serves as a forum for the exchange of ideas and information, which could be utilized in other situations. Managerial and Supervisory Training The managerial job combines both techniques and conceptual knowledge. If it is that of a specialist, it would emphasize some techniques and knowledge like operations, research, finance, production, and personnel management. If on the other hand it is a general management job, then the emphasis would be on the principles of scientific management: organizing, planning, staffing, directing and controlling. Apprentice Training The apprentice act 1961 was based on the philosophy of providing some technical training for unskilled people in order that their employment opportunity is enhanced, or alternatively to help them be self-employed. Industrial organizations in specified industries are required to train

12

apprentice in proportion to their workforce in designated trades. The duration of training is one to four years.

2.4 LEARNING AND TRAINING

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

13

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

14

Relevance Relevance relates to the meaningful use of material, which aids learning, e.g., trainers usually explain in the overall purpose of a job to trainees before assigning them a particular task.

2.5 TRAINING POLICY

A company's training policy represents the commitment of its top management to training, and is expressed in the rules and procedures that govern or influence the standard and scope of training the organization. Training policies are necessary for the following reasons. 1. To highlight the firm's approach to the training function, provide guidance for design and execution, and to provide information regarding programmes to all employees. 2. Formulation of policy helps in identification of priority areas in training, and since resources are scarce, they are prioritized according to felt needs. 3. A training policy document helps to communicate the firm's intent regarding an employee's career development, and also gives the employee the opportunity to better his prospects through training.

2.6 POSITIVE OUTCOMES OF TRAINING

The continued effectiveness and efficiency of an organization is to some extent dependent on the ability of its employees to produce at high levels of efficiency, and keep abreast with their changing job-role demands. Training

15

will provide for an output in this direction. The several positive benefits of training are that: Training helps employees to learn their jobs and attain desired levels of performance speedily thus cutting costs and contributing to better utilization of machines and materials, for example in workers' categories. Training helps to reduce the cost of raw materials and products-reducing losses due to waste, poor quality products and damage to machinerywhich would result if an untrained employee were to learn on his own. Employee motivation is enhanced when employees known that the firm would provide them training opportunities to increase their skills and knowledge, thus enabling them to develop and qualify for higher posts. Such practices create favorable attitudes towards the organization, which could result in better adjustment and commitment to one's work and the organization. Thus cooperation could help reduce employee turnover, absenteeism, accidents, dissatisfactions and grievances. Finally, training aids in the development of individual skills, better methods, new equipment, and sometimes new work place relationships. Such a process would also facilitate technological change by updating the versatility of employees.

2.7 TRAINING METHODS

Training methods are a means of attaining the desired objective in a learning situation. Given background work such as identification of training needs, a programme design and its duration (based on these needs), it then becomes

16

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

2.8 OBJECTIVES OF TRAINING METHODS

Training methods have a number of overlapping objectives. As stated earlier, they have to be chosen in relation to the programme design requirements. The main objectives of individual training methods could be: demonstration value, developing interest and finally, appeal to senses. However, more than one, or even all three objectives may be found in one method.

17

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

18

many of the trainee's senses as possible, in order to improve retention of learning. Application of these basic objectives or guidelines alone would not be enough. For the appropriate use of a method, problem analysis and needs identification are also necessary. The trainer has to understand and identify the problem area; what is wrong, and where is the correction needed? He has to examine whether there is a problem with the manner in which the task is done, i.e., an operational problem, or whether there is a problem with an individual or individuals, i.e., a human-relations problem. Secondly, selecting the appropriate method would be dependent on the level of the trainee in an organizations' hierarchy-is he a shop floor worker, supervisor or a manager? Finally, before selecting a training method, the trainer should keep the mind cost effectiveness.

2.9 CLASSIFICATION OF METHODS

Depending on the learning outcome, and the process by which it is attained, it is possible to categorize the various methods into several groups. On-the-job-oriented training methods In this cluster are included methods whose main objective is centered around the job, more specifically, learning on the job itself by a variety of methods. They embrace development through performance on the job,

19

where organizational strength and constraints, human behavior and technological systems have full and free play. Methods, which fall into this category, are: 1. On-the-job training. 2. Job rotation. 3. Guidance and counseling. 4. Brainstorming sessions. 5. Syndicate method (working in small groups). Simulation methods Real-life situations are simulated for imparting training. The methods falling in this category are: 1. Role-play. 2. Case method. 3. Management games. 4. In-basket exercise. Role Play The role-play method requires participants to enact roles on the basis of a written script or an oral description of a particular situation. The enactment process provides an insight and understanding of the demands and situations of the assigned role, thereby facilitating empathy with another's (actual) role. The main emphasis in management training is in facilitating

20

better understanding of interpersonal problems, and attitude change. If not handled well, however, it could degenerate a childish exercise, where, instead of focusing on the problem to be understood, the situation might be over-dramatized. Case method The case is an actual situation, which is written for discussion purposes. Analysis would need problem identification, analysis of the situation and of its causes. There could be several solutions to the problem, and each of these alternatives and their implications needs to be examined. In the real world, on many occasions, a manager may not have all the relevant information with him before taking a decision. Similarly, the case method approximates this reality and in many situations decisions are taken with limited data, or what is termed decision-making under uncertainty. The managerial response in such a situation is explored and understood and learning consists of developing problem-solving skills. Management games The game is built around the model of a business situation and trainees are divided into teams representing the management of competing companies. They simulate the real-life process of taking operation decisions. Decisions taken are analyzed by a computer, or manually, and a series of the implications of these decisions are fed back. The game is played in several rounds to take the time dimensions into account.

21

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

22

2.10 TRAINING ORGANIZATION

There are several administrative aspects that have to be taken into account before launching in-house training programme, or nominating participants to external programmes. In-Company/External Programmes The company needs to formulate its thinking regarding participation in programmes offered by external agencies like educational management institutes, government institutions and consultant programmes, vis--vis conducting its own in-house programmes. Where employee numbers are small, it may not be worthwhile to set up a training establishment and conduct in-house programmes, but as the numbers increase, this options may offer a distinct possibility. There is the cost aspect to be considered: for the cost of sending a participant to an external programme, several employees could be trained within an organization. Yet, the advantage of an external programme would be a breath of fresh air through discussions with other participants and a fresh approach could be brought into the organization and its problems. The skills and techniques learnt might also be different from those offered by one's own in-house programmes. Training Budgets A training budget for each internal programme has to be prepared, which would include cost of facilities like training room, food, transport, guest faculty, if any, and cost of teaching materials. In fact, the cost to the organization should also include the wages and salaries of employee

23

participants who would be temporarily pulled out of their regular jobs and sent for training. Yet, organizational requirements would necessitate their jobs being done by someone else. The reason for costing the trainee employee's salary would be that they would not be making any contribution to the company during the training period, and that this is an additional burden on the company's finances.

2.11 EVALUATION OF TRAINING

Evaluation of any activity is important, since in evaluating one tries to judge the "value or worth of the activity, using the information available". What is the purpose of evaluation? Evaluation, by bringing to the fore "weaknesses and failuresstrengths and successes," helps to improve training methods. Evaluation helps management to answer the following questions The relevance of the programmes to the organization's needs-what changes if any should be made in existing programmes to realign to the organization's needs. Feedback on the choice of areas of training will also need to be examined in the context of its contributions to the organization's effectiveness. Should the money continue to be spent on this activity, or another more relevant activity that will improve attainment of the organization's objectives?

24

Reactions from trainees about the training programme can help identify its strengths and weaknesses. These reactions can be used as a base for the improvement of programmes, but those evaluating must first be definite about the aspects they are interested in investigating. An evaluation of a training method or system must also take into account the suitability of objectives. "If the objectives were inadequately formulated in the first place, even a 'good' training programme has really no chance to be effective." Objectives have to be clear-cut, must relate to needs, and make way for changes. Objectives cannot be static and need to be re-appraised frequently so that training may result in improved overall organizational efficiency. Evaluation of objectives helps to bridge the gap between needs and objectives. THE EVALUATION PROCESS The most useful means of evaluating training are observations, ratings, trainee surveys and trainee interviews. Observation is concerned with observing the behavior of people in a certain situation. To be useful, it must be specific, systematic, quantitative, recorded and expert. Needless to say, observers, must be trained and have specific ideas about what they are looking for. This is the most direct method of "assessing the quality of formal training and of identifying deficiencies". The second method of evaluation is that of ratings. "Various elements of the training system should be rated independently by several qualified raters.

25

These elements include trainees, instructors, equipment, materials, training aids and facilities." The use of rating scales requires supervised practice, as it is easy to commit errors. The third method is trainee surveys where opinions of the trainees are used for evaluation. These opinions should not be used independently, since they cannot always be relied on to be objective. The fourth method is trainee interviews, whereby ideas and views that trainees might not put down on paper can be determined by "skilful questioning". This method allows for more precise information and details to be obtained and prevents ambiguity, especially in interpretation. The final method is that of collecting the observations and recommendations of instructors through surveys and interviews "to ensure that the system is consistent with the needs of the implementers of the training". Interviews with instructors will bring to the surface characteristics that instructors may feel reluctant to put down on paper.

2.12 IS TRAINING THE BEST MEDICINE?

Imagine this: A man is having chest pains. He rush as to his doctor, tells him he is having a heart attack, and demands that he perform open-heart surgery. He obligingly agrees. It is not until after a great deal of pain and expense that he discovers it was only in digestion. When it comes to training, a similar situation happens all the time. If scrap rates are too high, productivity is too low, and employees neglect to follow standard quality procedures, they must need more training. Before rushing

26

into the pain and expense of interrupting production to send them off to a seminar it is necessary to make sure that training is the proper solution. Just as a doctor must understand the cause of a patients symptoms before he can attempt a cure, one needs to know why employees are not meeting the companys expectations before taking action. Thats where a training needs analysis will help. It tells how well employees are doing their jobs, where they could use some improvement and how that improvement can best he achieved. Done correctly, it can save the company from wasting a lot of time and money on inappropriate training programs. Gathering the information To do a valid training-needs analysis, one needs to gather as much objective data about employee performance as possible. There are many ways to collect this information, including: Casual conversations Formal interviews Direct observation Work samples Written records Surveys Tests Focus groups

27

A professional trainer can be hired to perform an analysis but its not just a technique for trainers. Everybody should be trained in this simple process. Its a supervisors or a managers job to make sure people can do their jobs. To do training needs analysis the following steps should be followed: Study current performance: Before tying to change anything, its essential to know what is already happening. What skills and knowledge do employees already have? What tasks are they performing on their daily jobs? Define ideal performance: what standard of performance is necessary for the business and the employees to be a success? What tasks must they do? What level of accuracy or productivity should they achieve? What skills and knowledge must they have? Find the gap: What is the difference between the definition of ideal performance and what the employees are currently doing? Are there any areas that arent functioning as well as they should? Where are there opportunities for improvement? This is the performance gap that the company is trying to fill. One must look for problems or opportunities that may occur in future as well as ones that already exist. Identify the cause: Why are workers not working up to standard? Have they ever performed the job correctly? Where and when do the problems occur? Has anything changed recently that might have instigated the problem? Compare best and worst performers to find the differences in what they do.

28

When these steps have been completed one should be ready to make diagnosis, but it must be remembered that training is not the only medicine for ailing performance. Although it is often mistakenly applied as a cure- all, the only problem that training can solve is a lack of skills and knowledge. Do employees know how to do the job? Could they do it if their lives depended on it? If so, probably there is no training problem. There are many reasons why a worker might not be doing his job correctly, including unclear expectations, insufficient feedback, lack of incentive and adverse working conditions. These are all management problems that can only be improved by management changes. Too often, people see the gap and they want to just leap right in and fix it. The key is not to jump to the solution, which is assumed to be training. Understanding the situation is the first step. Then, once one understands the situation one can think about why (The problem exists). Only if its because (employees) lack skills and knowledge should training be considered as a solution.

2.13 NEW TRENDS IN TRAINING

SELF DIRECTED LEARNING Organizational support enhances self -directed learning programs. The term "self -directed learning" describes training in which the learners essentially guides himself through the learning process using workbooks, manuals, or computer based training programs. Many companies are switching to this type of training because it allows for more flexible scheduling, as well as

29

reduced training time and expenses. If we look at the life cycle of classroom type training, 90% of that life cycle cost is in the delivery, not in the development. Plus, as people get up there and start to talk, it takes longer than it does to deliver the training in some other ways. Well-designed selfdirected learning will probably take half the time of classroom instruction. But even well -designed programs won't achieve optimum results without proper support. "People [switch to self-directed learning programs] for cost issues, and a lot of them don't recognize that there are organizational issues that they have to deal with, "If they don't deal with them, the theyre not going to get as big a return on their training investment as they could. The following are tips for supporting set directed learning in a company. 1. Learning is work. Many organizations don't recognize training as real work. Unlike classroom training, which must have a scheduled time and place, self-directed learning is often just squeezed in here and there, or the employee may be forced to take it home. 2. Keep sessions short. All days are much more fragmented than they used to be "So when self directed modules are developed, there is no space for two hour or three hour modules. The training needs to be made into shorter chunks, so that it can fit into the shorter periods of time. "Training should be long enough to get a concept across, but not so long that it involves too many once. 3. People need people. Many managers forget about the learners need for contact with others. Seeing and being seen are very important in the political environments of today's companies and the classroom is where 30

that often went on. If we take that away from the classroom, we have to provide some other way for it to happen, because they learn form each other as well as learning from the class. Meetings, e-mail, and electronic forums are some ways to compensate for the isolation that self-directed learners may feel. 4. Combine delivery methods. Self directed learning has many

advantages-but it is not the best choice for every situation. Self directed learning is much better for knowledge based learning. It can work for some skill based learning, but there are times when one wants to have hands on. A lot of your best programs are a combination. For example, a well-rounded program might start with an introductory session delivered by satellite. Self directed, computer based training could then get everybody up to speed on the basic information. Classroom sessions could then build on that knowledge by teaching hands on skills. The most important thing is to plan ahead in the initial training needs analysis for ways to support the unique needs of your self directed learners. That is a very important part of the needs analysis that is often neglected. We look at what are the learning objectives, but we don't look at what has to be taken care of in the organization and culture in order to achieve to those learning objectives.

2.14 TRAIN, DON'T TELL

Many companies' so-called training programs are little more than one-way information dumps. Information is transmitted, but the trainees get little

31

guidance on exactly what to do with it or why. As a result, the words float by in isolation, seemingly detached from the employees' real world of paperwork and production quotas. Because the information is never used, it is quickly forgotten. This problem is compounded, because the human brain processes procedural knowledge differently from the way it process declarative (telling) knowledge. The people who are selected [to do training] are often people who have expertise in doing something. They usually got that expertise through trial and error, but they try to teach through telling. In other words, they use declarative methods to teach procedural knowledge. Afterward, they except trainees to perform the task and they become frustrated when it doesn't work that way. Real training is a two way street. It helps the trainee process and practice new skills, rather than simply dumping information on him. By actively engaging the trainee's participation, real training converts lifeless information into meaningful knowledge. The employee understands why the new

knowledge is relevant and has a clear idea of how to apply it. Transforming telling into training isn't hard, if one includes these six key elements: Incentives: Employees need to understand what's in it for them. Why should they do it this way? Demonstrate how the new knowledge or skill will solve a problem or make them better, faster, and more effective in their jobs. Objectives: Make sure trainees understand what the companies wants

32

from them. One of the biggest inhibitors of employee performance is unclear expectations. Organization: Organize information to make it easier to remember. Show how it relates to things they already know. Use analogies, examples, and mnemonics. Dont confuse beginners with a lot of unnecessary details. Instead, focus on the basic steps to gain performance. Participation: Encourage them to ask and answer questions. Get them to try the skills or apply the knowledge for themselves rather than just memorizing what you say or do. The more they participate, the more they will learn. Feedback: Let them know how they're doing. This allows them to correct mistakes before they become habits. It also helps them gain confidence, which will encourage them to feel comfortable applying new skills. Rewards: If they're right, tell them they did well. If they're wrong, praise them for trying. Even if there techniques are applied in small, informal ways, employees will understand what the company wants a lot better, once one stops telling and starts training.

2.15 TRAINING: MANTRA OF THE NEW MILLENNIUM

In today's scenario, change is the order of the day and the only way to deal with it is to learn and grow. Knowledge is the potent symbol of the new

33

millennium and the only way an organization can strive to excel is to realize that success today is not a function of financial muscle or physical assets but of competent workforce. It is the workforce with high caliber, knowledge and skills that is hard to duplicate. Employees have become central to the success or failure of an organization; they are the cornucopia of ideas. Katz and Kahn (1978) have posited that organizations must have three behavioral features. PEOPLE MUST BE ATTRACTED NOT ONLY TO JOIN THE

ORGANIZATION BUT ALSO TO REMAIN IN IT. People must perform tasks for which they are hired and must do so in a dependable manner. People must go beyond this dependable role performance and engage in some form of creative, spontaneous and innovative behavior at work. The most important aspect that guides competitiveness in current turbulent markets in how companies gather, analyze and use information to their advantage. Thus IT capability that processes and manages information in a corporate will be the single most effective weapon in the era of information technology. As organizations shift from being product based to knowledge based there has been a shift, with accent on knowledge. Employees today need to adopt skill sets with ease. The knowledge worker of today is in a constant pressure to compete with redundancy, as knowledge and information is no longer a prerogative of a few. IT is affecting the people, process, structure and strategy of organizations. IT acts as an enabler to

34

capture and disseminate information so that individuals can become knowledge workers. Keeping this in mind ,organizations need to realign their thought process and give training a fresh look. Things will never be the same in the e-era. With the world becoming a global workforce, organizations today have to compete at the international level. This has redefined job requirements in terms of skills, competencies and qualifications. Today development of the employee is a prerequisite to make the employees work for the company rather than in the company. Today it is not the aptitude that guarantees success but the attitude. Employees are being encouraged to learn that it is essential not to control one's emotions but to manage them and channelize them for their effective use. Workshops on emotional intelligence are quiet common in the corporate arena. One offshoot of EQ training is team building. Teamwork is highlighted in most companies and various outdoor training programs are conducted, even at the induction training stage, to nurture the team spirit. Other topics on which training is being encouraged in the new millennium are communications, computer skills, customer service, ethics and quality initiatives. TRAINING IS EVERYBODY'S BUSINESS Training is not the panacea for all the friction resulting due to change. Yet efforts in the right direction are definitely worth it, as organizations need to

35

achieve their goals, maintain them internally and at the same time adapt to the ever changing environment. Hay Groups annual survey of the world's most admired companies identified training as one of the best ways to attract, motivate and retain talent. Innovation in training methods seems to be a result of that. Traditional methods of "chalk and talk" are giving way to virtual learning. Global giant Motorola is reaping benefits of virtual learning. Motorola University is the most widely benchmarked corporate university in the world. IBM also has a university for its employees and they are encouraged to learn under the guidance of "dispersed mentors". Usually companies are turned to the WIN FM-whats in it for me. Companies like GE, General Motors have their training department independent of HR. It operates as a separate business center contributing to the company's profit. COMPANY PRACTICE IN TRAINING HCL Every employee receives training for 8 days on an average. HR policy is built around Employee Development Growth & Empowerment (EDGE). It is a consciously developed program aimed at making Comnet a learning organization. An exhaustive training module is there to create global managers where freshly inducted employee follows a structured path going up with the certification levels from

36

base line to advanced base line to silver club to finally become a gold club member -with global level expertise. One way to minimize the danger of a company losing its financial investment in training is to share the cost with the employee. By asking an employee to invest partially, one does increase the intrinsic value of the training to the employee since it is instrumental in career planning and succession planning. BENEFITS OF TRAINING ARE EXPANSIVE Employees and organizations need to realize the importance of contribution and learning for mutual growth and development. An organization with a myopic view cannot realize the importance of training. Organizations that lack vision undergo stagnation, decline and crisis after success. Training is the answer to deal with the stagnation stage by constantly updating it in every field. Other benefits of training include. Hiring appeal: companies that provide training attract a better quality workforce. Assessing and addressing any performance deficiency. Increasing productivity. Enhancing workforce flexibility. For example, in the IT industry, employees are sent to different countries for diverse projects and assignments. Cross-cultural training is essential for them for better

adjustment in the new environment.

37

Increasing commitment: Training acts as a loyalty booster. Employee motivation is also enhanced when the employee knows that the organization would provide them opportunities to increase their skills and knowledge. Business is not just about transactions but is about relationships.

It gives the organization a competitive edge by keeping abreast of the latest changes; it acts as a catalyst for change.

Higher customer satisfaction and lower support cost result through improved service, increased productivity and greater sufficiency.

Training acts as a benchmark for hiring, promoting and career planning. It acts as a retention tool by motivating employees to the vast opportunities for growth available in an organization.

In certain cases training can also act as a tool for reward and recognition. Candidates showing high potential can be trained for advanced training in their field. Thus one can trace the link of training with performance appraisal and potential evaluation.

We have moved a long way from the Machine Age. Today what is required is strategic acumen and cross-functional expertise. Today the workflow is milestone led. Command and control have given way to facilitation. The employer- employee relationship in the networked age is a skill contract and the work is largely cerebral. The benefits resulting due to training prove that it is time for organizations to discard their parochial view and work towards developing their human assets. The people factor is the pivot for

38

organizational growth. Aligning organizational vision to the development of employee is only possible way to become a success story in an environment which seems to be reverberating with two words: 'perform or perish'.

39

Chapter-3 COMPANY PROFILE

HCL Technologies is Indias 5th largest and a leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 17 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences (Clinical Research services in CDM and Biostatistics) & Healthcare, Aerospace, Automotive, Semiconductors, Telecom and ME (Media & Entertainment). For the fiscal year ending June 30, 2007, HCL Technologies, along with its subsidiaries recorded revenues of US $ 1.7 Billion and employed 52,000 professionals. In early 2006 HCL Technologies won a $300 million contract described as one of the biggest Indian outsourcing contracts at that time, a three-year deal with European electronics retailer DSG which operates Dixon's stores in the UK. The deal includes services such as custom applications development and maintenance, infrastructure management and data center hosting. On 20 December 2006, HCL announced a US$200 million deal with the British arm of European insurer, Skandia. Skandia UK will outsource

40

application optimization, including development, maintenance and support and remote infrastructure management to HCL. It is said to be one of the largest offshoring deals in insurance. During 2005-06, HCL announced three other large multi-service, multi-year deals: Celestica, Teradyne and Autodesk. HCL Infrastructure Services Division (also known as HCL Comnet), specializes in remote IT infrastructure management services. HCL BPO Services provides a comprehensive range of Voice/Web base Contact and Front Office Services that span Collections, Sales & Marketing, Technical Help Desk and Customer Care. It represents HCL Technologi es most significant strategic business extension and investment to date. HCL BPO Services currently operates out of various locations in India, Malaysia and Northern Ireland. In 2006, HCL Technologies was ranked #1 among the "Best Performing IT Services Firms" in India while the company's Infrastructure Services Division was awarded the #2 rank worldwide. These rankings were awarded on the basis of a survey - Global Services 100 - conducted by Global Services magazine in association with NeoIT, an outsourcing advisory firm. In 2007, HCL Technologies was ranked by The Black Book of Outsourcing as the #1 Infrastructure Management Services Outsourcing vendor in the world, ahead of vendors such as IBM, Accenture and EDS. HCL was also mentioned as the only India based vendor in the Top 10 in these rankings.

41

HCL's innovative HR practices, including its famous "Employee First" policy, have been the subject of case studies by the Harvard Business School (August 2007) and the London Business School (Spring 2007). In its issue dated November 19, 2007, Business Week recently featured HCL in an article titled "The Employee is Always Right", which talks about HCL's "Employee First" policy. SMT program SMT Program is a management program in HCL Technologies that provides a fast track program with the philosophy of Catching them young and setting their minds on fire. The program was formally initiated by ex-HCL HR and BPO Head, Sujith Bakshi in 1985 based on success achieved with IIM graduates by HCL in 1970s. The managers from the SMT batches have been credited with various successes over the years including setting up of NIIT, various JVs and transnational divisions (Singapore - 1981). The current CEO of HCL Technologies (software division) - Vineet Nayar is an SMT from the Batch of 1985.

HCL TECHNOLOGIES - DIFFERENTIATORS

Business Week in one if recent article quotes, '...a more enlightened, strategic view of global sourcing is starting to emerge as managers get a better fix on its potential.The new buzzword is 'transformational outsourcing'. At HCL, we believe that IT driven business innovation, emergence of new disruptive technologies, business models, and

widespread acceptance of global delivery models are some of the

42

transformational forces at work today. Capitalizing on these trends, traditional outsourcers are extending their sourcing focus from cost to innovation, productivity and flexibility, while new segments of outsourcers are seeking new, technology-enabled transformational gains. Everyone's talking transformation these days. But what most of them actually mean is upgradation i.e. business process improvement, or service re-engineering at best. True transformation is revolutionary and directed at core processes, resulting in deep and fundamental change. It doesn't merely cut costs, or streamline the way a company works it radically alters market position by building competitive advantage. IDC in its report on 'Offshore Application Outsourcing Game' states that the combination of offshore and on demand creates one of the most compelling value propositions to help customers move closer to truly dynamic IT. And HCL is uniquely positioned with its perfect blend of onshore presence and offshore economics. Building competitive advantage also demands a shift from the earlier fee-driven/service provider model to a new age, outcomebased/partnership model. HCL started questioning the linearity of scale-driven business models adopted by service providers (largely in the IT application business). The questioning led us to the belief that the market was rapidly approaching a point of inflection, that is a point where the volume and value proportionality would change, opening up new opportunities for service providers who aspire to focus on value. With this realization, in mid 2005, HCL embarked on a transformational journey that will focus on value centricity in customer

43

relationships and on leveraging new market opportunities, while creating a unique employee experience. The 'Employee First' philosophy at HCLthe first such articulation in the IT industryis at the core of our efforts to provide our employees a work environment and culture they take pride in. HCL is committed to provide all its employees the same experience that we promise to external customers by being proactive and responsive, and through technology and process innovation. Our HR initiatives strive to provide excellent human resources leadership and expertise to the organization, as also to attract and retain a workforce that is diverse, inclusive and committed to creating quality customer service. At the core of our Employee First philosophy is the concept of talent transformationrecognition and enablement of competencies, as opposed to roles in skilling employees in necessary technical, business and behavioral areas. The five-fold path describes HCL's comprehensive employee support structure. Technology is heavily used to create a path that can be capable of enlightening nearly 40,000 employees. The five fold unfold the various initiatives of HCL on varied aspects of individual enlightenment Support, Knowledge, Empowerment, Transformation and Recognition. Our Value Services model adopts a 360 degree approach to customer value and embeds value centricity in all facets of the HCL customer relationship. We focus on value culture, creation, engagement, distribution and delivery.

44

Value Culture:- There is no doubt that the most dependable way for a service provider to create customer value is to have engaged, empowered and result-oriented employees. We make sure that the working culture not just encourages individuals for value centricity but gives them enough support, tools and training for creating value. Value Creation:- HCL has had a history of leading the industry in creating and dominating uncontested market spaces. This dominance has been formalized into a model creating new value for customers through service innovation. A large portion of our revenue comes from emerging services services that we have pioneered in the industry like remote infrastructure management and engineering and R&D. To ensure the conversion of excellence and engagement to customer value we have attempted to institutionalize the process through a specific intervention. We have unique framework to create that extra value (beyond base delivery) and at HCL we call it 'Value Add Framework'. We have successfully rolled this out or select customers and the success was measured with quantified cost savings signed off by customer itself. Value Engagement:- HCL has the flexibility to treat each customer differently by imbibing the patterns and characteristics of the customer organization, industry and the geographic spread. The unique flexibility demonstrated by HCL has resulted in a history of innovative commercial models (like output based pricing) and global account management programs to make each relationship yield more business value, than is normally expected, for both partners.

45

Value Distribution:- HCL has created the ability to distribute value across the customer's IT landscape through its well-distributed services portfolio, significant domain strengths, and locally relevant geographic distribution. Value Delivery:- In the physical world, customers attribute value to delivery on the basis of reliability, quality, and speed. In the services world, especially in the IT services world, security is an added expectation. Value delivered is calculated based on the business benefit delivered by the service provider. Such value delivery calls for high levels of maturity and customer satisfaction, and would be difficult to achieve if the outsourcing strategy is predicated solely on the short term benefits of labour arbitrage. HCL has geared its Service Delivery Framework, quality systems and information security capability to meet the maturity levels required in a value centric world. In an industry driven by effort based pricing, HCL has taken giant leap with its commercial models and deal structuring approach. HCL has experience in working with a wide range of customers in various stages of offshore maturity to design customized models for them T&M based models for projects where accountability and collaboration extent is low (to start with), output based models and fixed pricing models, and risk/reward based approach where we collaborate to commit to outcomes through a gain share or join venture model. At HCL, we believe that if we share the vision, we must share the risk.

46

Chapter-4 SURVEY ANALYSIS

4.1 TRAINING EVALUATION
How satisfied are you: Relevance of courses with respect to your needs? Excellent 7 Very Good 37 Good 18 Fair 28 Needs to Improve 10

Needs to Improve 10%

Excellent 7%

Fair 28% Good 18% Very Good 37%

47

Excellent How Satisfied are you with the training personnel knowledge and professionalism? 6

Very Good 7

Good 83

Fair 3

Needs to Improve 1

Fair 3%

Needs to Improve 1% Excellent 6%

Very Good 7%

Good 83%

48

Excellent How do you rate the measurable change in knowledge or skills at the end of the training programme?

Very Good

Good 68

Fair 32

Needs to Improve

Needs to Improve 0% Excellent 0% Very Good 0%

Fair 32% Good 68%

49

Excellent What Is your ability To solve a mock problem at the end of training 1

Very Good 11

Good 69

Fair 19

Needs to Improve

Fair 19%

Needs to Improve Excellent 0% 1% Very Good 11%

Good 69%

To what extent has the training programme helped you to achieve growth in return on investment (ROI) for the organization? All the respondents agreed that the training programmes have been effective in achieving overall growth of the organization. i. Yearly budget allocation is decided by the head office ii. Training program is made on the basis of A: Training calendar as decided by the department heads B: Projection of any training aids procurement id done on regular basis

50

C:

Normal

administrative

expenditure

are

planned

through

departments. iii. Past experience and bench marking with the current scenario iv. Cost per participant x no. of participants to be trained is pre-planned Where there any behavior changes experienced after the training programme .If Yes, please comment? For some people, training is merely a relief from regular monotony, so they want to relax during the training days instead of taking it seriously Sometimes, participants are sent not on the basis of their needs, but to satisfy the statistics If the batch is not homogeneous, it is a problem to maintain the flow in a training program Caliber of individuals is of different levels Mindset Participants sometimes dont have the prerequisite background for training

51

Does the programme provides opportunity for personal development? Comment Yes 89 No 11

No 11% Yes 89%

52

What is the rate of Retention, of knowledge after the end of the training? Excellent Very Good Good Fair Needs to Improve 2 17 58 21 2

Fair 21%

Needs to Improve 2% Excellent 2% Very Good 17%

Good 58%

53

Was there any change in motivational and leadership level after training? How?

Yes 69

No 31

No 31% Yes 69%

54

Would you recommend HCLs s training services to colleagues or contacts within your industry?

Yes 100

No 0

No 0%

Yes 100%

55

Chapter-5 CONCLUSION AND RECOMMENDATION

CONCLUSION
At HCL Technologies, Shiv, the Chief Executive Officer, gives his managers autonomy and challenges in order to develop the best talent. Some executives believe challenging employees is the best way to develop talent. Shiv Nadar, 68, has prepared executives at his company, HCL Technologies, by gradually increasing their responsibilities through

promotions and project work. India-based HCL Technologies is one of two companies that make up HCL Enterprise, which is also headquartered in India. HCL Technologies is a leading provider of software and technology services. The company has more than 28,000 workers in 15 countries. Mr Nadar, who is chairman and chief executive of HCL Technologies, founded HCL Enterprise, then known as Hindustan Computers Ltd, in 1976. He launched HCL Technologies in 1991. Typical of many technology companies over the past three decades, the company possesses an entrepreneurial style in which managers are relatively autonomous. Each of HCL Technologies five division heads has profit-and-loss responsibility for their groups. Before HCL starts considering someone for a senior role, it wants evidence that the executive is ready. For example, Vineet Nayar was chief executive of HCL Technologies infrastructure business before assuming wider responsibilities as president of HCL Technologies. There is a fair amount of delegation and

56

accountability, most very highly with responsibilities. Although it is difficult to measure precisely, Mr Nadar believes that HCLs talent management has led to strong growth, largely by ensuring high employee and customer satisfaction. Revenue rose by 35% from US$568m in fiscal 2004 to US$764m in fiscal 2005 ending June 30th. HCL judges individual performance mainly on a divisions financial success. Groups that are meeting goals and increasing revenue indicate that a leader is outstanding. But Mr Nadar says standards must be flexible. For example, HCL may not expect the same profitability for an early-stage initiative as it does of more established divisions. The firm also considers how someone achieves results, including how an executive manages and develops subordinates. This is indicative of the awards that HCL Technologies consistently wins as one of Indias most employee-friendly companies, with strong customer service. The company uses annual 360-degree reviews, in which employees evaluate managers to measure leadership skills. Separately, HCL conducts personality assessment tests every year or more frequently to help gauge potential. HCL seeks executives who are not only commanding but quick-thinking and innovative. The fast-moving technology sector requires as much. Based on performance evaluations, a human resources (HR) staff of 100-200 leaders prescribes development

programmes. Many of the programmes centre on workshops, some of which are offsite. Mr Nadar participates in offsite planning but not the leadership workshops. He says that HR executes the talent management strategy and 57

provides ideas regarding development activities. Mr Nadar spends about 3040% of his time on talent management. He writes evaluations about his direct reports, including the chief financial officer and president, and a few executives one level below. He can pinpoint his best chief executives and chief operating officer candidates and identify immediate replacements for other key positions. HCL also has succession plans that look three and five years into the future and further beyond. Mr Nadar is a strong advocate of mentoring and ad hoc coaching. Executives throughout the firm regularly stop by his office for a cup of coffee. Mr Nadar helps them pick through a problem. He believes that there is a level of bonding at his company that may not exist at firms outside the region. It is not unusual for Mr Nadar to work at weekends with his leading executives. He sees some of them socially, although that does not stop him from making a critical assessment of their work. But retention is HCLs main challenge, a reflection of the intense competition for executives in India. As some top managers have progressed, they have sought positions with greater responsibility outside HCL. A lot of employees have left and become CEOs of other companies. HCL has combated the exodus by increasing compensation, including stock options. HCL also has difficulty convincing executives to take foreign assignments, despite the fact that it would help their careers. Mr Nadar says that people resist moving aboard for cultural reasons. Executives in India feel strong ties to their home base. To fill management gaps overseas, HCL hires executives from the US, Japan and Europe.

58

HCL technologies is a top tier IT services firm which is placed in the top 5 Indian IT companies is rapidly scaling up its operations globally. The HR structure and processes are undergoing rapid changes and new HR opportunities are emerging. Companies have two major assets that are

fundamental to their success. Firstly, it is a product or service that meets the needs of customers in a way that competitors find it very hard to match and secondly, it is the highly committed and customer-focussed staff. HCL Technologies has recently launched a series of human resource initiatives to help it get 50% of its revenues from the uncontested markets by 10. The IT major is finding out that this long-term goal could have short-term benefits, too. The company has managed to bring down its attrition rate by 25%, its employees have contributed to significant cost savings for customers, and the initiatives have helped it win more business from the customers. HCL Techs new HR initiatives included increasing HR support strength by 65% to 1 per 25 employees, introducing systems to solve HR problems faster, implementing 360 degree appraisal and discarding variable pay for 85% of employees. All these to prepare the employees for a revenue model that depends on output/impact based billing rather than hourly billing. These initiatives come on the back of what Mr Nayar believes to be a fundamental change thats taking place in the IT market. Indian IT market jumped from $2 billion in 1999 to 20 time that size now because of a change from total IT outsourcing to selective IT outsourcing. Even this has become

59

commoditized now adding that the focus would shift to adding value - and sharing risks and rewards with the customers. While these changes are aimed for future results, the tech major is already seeing the benefits of these initiatives. They have started measuring value our employees add in terms of cost savings or contribution to customers revenues. These would eventually be linked to employees financia l rewards. Customers see benefits in these and are more willing to partner with HCL Tech. Another immediate benefit was the reduction in attrition levels. Software engineers get more satisfaction from taking up challenges, adding value, and contributing something significant, than from merely giving efforts. Attrition rates have come down by 25% since the start of the programme. Going forward, it impact would be even higher. HCL expect their focus on value to attract and retain talent.

RECOMMENDATIONS
From the analysis done in the previous chapter, we can arrive at the following conclusions: Training needs analysis is done taking into consideration the views of not only the superiors, but also the trainees themselves. This was confirmed from the responses of both the trainees and the trainers. The trainees felt good that they were involved in the analysis of their own needs and also said that the management was very co-operative and tried to incorporate their views and suggestions to the extent possible. Thus, as far as this

60

aspect is concerned, the trainees were satisfied with the procedures followed. Both the trainers and the trainees felt that the thrust in future should be on developing people skills and not only functional skills. They also said that IT would be a focus area. Many trainees felt that they were not being given adequate training to keep them abreast of the changing environment. Most of the times trainees were not involved in the training program planning. Both the trainees and the trainers were in agreement on the most essential elements that go into making a training program successful. The final ranking obtained is the same in both the cases. This only goes to show that HCL is aware of the needs of the participants and also understand what elements are most important for a trainee. For both, clear objective is the most important element that makes a training program successful. We can conclude that HCLs efforts towards training and development have been quite successful. The employees are satisfied with the training activities, but they only feel that they should be involved in the planning of the Training Program. According to them, their views should be taken on all issues instead of just informing them that they have to attend a training program. They should have a say in deciding on the contents, physical arrangements, etc. This would involve them further in the

61

exercise and they would be more open to learning. Training should be imparted on current issues like change management, because although the employees are quite satisfied with the training programs as a whole, they still feel that training should be imparted on issues that are relevant in the current business scenario. Training sessions should not be too long, long sessions should be split up into modules. Self-directed learning in some areas should be encouraged. This would save the companys time and also reduce costs.

62

BIBLIOGRAPHY
1. Personnel Management by Arun Monappa and Mirza.S.Saiyadain 2. Learning to Learn, Sylvia Downs (Handbook on Training and development by Steve Truelove) 3. Quality Magazine, Training Trends: Is training the best medicine? 4. Indiatoday.com website 5. Businessinsider.com website 6. Google search results compilation 7. HCL website 8. Data acquired from HCL employees and HR department

63

ANNEXURE
QUESTIONNAIRE PROJECT: MEASURING TRAINING EFFECTIVENESS
Name of the Respondent: _____________________________________ Department: ________________________________________________ Contact No. _________________________________________________ Address: ___________________________________________________ Training Evaluation How satisfied are you: Relevance of courses with respect to your needs? How Satisfied are you with the training personnel knowledge+professionalism? How do you rate the measurable change in knowledge or skills at the end of the training programme? What Is your ability To solve a mock problem at the end of training Excellent Very Good Fair Needs to Good Improve

64

To what extent has the training programme helped you to achieve growth in return on investment (ROI) for the organization? _____________________________________________________________ _____________________________________________________________ Where there any behavior changes experienced after the training programme .If Yes, please comment? _____________________________________________________________ _____________________________________________________________ Does the programme at HCL provide opportunity for personal development? Comment Yes No

What is the rate of Retention, of knowledge after the end of the training? Excellent Good Needs to Improve Was there any change in motivational and leadership level after training? How? Yes No Very Good Fair

Would you recommend HCLs training services to colleagues or contacts within your industry? Yes No

65