A PROJECT REPORT

ON

TRAINING EFFECTIVENESS IN AN ORGANIZATION

Under the guidance of

SHWETA SINGH PANWAR

Submitted by

ARCHANA RATHI

REGISTRATION NO: 1302010816/MBARJ0515

In partial fulfillment of the requirement for the award of the degree

Of MBA [HUMAN RESOURCES]

(I.I.C.E. COLLEGE)

[Study Center - 02086]

1
 A PROJECT REPORT
ON
TRAINING EFFECTIVENESS IN AN ORGANIZATION
Under the guidance of
SHWETA SINGH PANWAR

Submitted by

(ARCHANA RATHI)

REGISTRATION NO: 1302010816/MBARJ0515

In partal fulfillment of the requirement for the award of the degree

Of MBA [HUMAN RESOURCES]

Year 2014-15

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 || ACKNOWLEDGEMENT ||

I thank to the people who helped and supported me during the making of this Project and the
report.

My deepest thanks to SHWETA SINGH PANWAR the guide of the project for guiding and
correcting various documents of mine with attention and care.

I express my thanks to the Learning Centre, I.I.C.E. COLLEGE and my faculties for their
guidance, help and support.

I would also thank to SHWETA SINGH PANWAR without whom this project would have been a
distant reality.

Place: UDAIPUR [ARCHANA RATHI]

[1302010816]
Date: Jan,09,2015

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 BONAFIDE CERTIFICATE

Certified that this project report titled TRAINING EFFECTIVENESS IN AN ORGANIZATION

is the bonafide work of ARCHANA RATHI who carried out the project work under my
supervision

Learning Center Faculty / Head of the Department

Date: 09 / 01 / 2015

Place:UDAIPUR

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 PREFACE

Summer training is the most vital part of an MBA course, both as a link between theory and actual
industrial practices as well as an opportunity for hands on experience in corporate environment. I
therefore, consider myself fortunate to receive the training in an esteemed organization viz.SBI.
Yet the opportunity could not have been utilized without the guidance and support of many
individuals who although held varied positions, but were equally instrument for although
completion of my summer training.

SWETA SINGH PANWAR and also thanks to all my faculty members and my Parents and
friends. However, I accept the sole responsibility errors of omission and would be extremely
grateful to readers of this project report if they bring such mistake to my notice.

Thanking You
ARCHANA RATHI

5
 DECLARATION

I, ARCAHANA RATHI hereby declare that the report of the project entitled TRAINING
EFFECTIVENESS IN AN ORGANIZATION has not presented as a part of any other
academic work to get my degree or certificate except Sikkim Manipal University for the
fulfillment of the requirements for the degree of MBA.

Name

ARCHANA RATHI

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 INTRODUCTION
Training and Development is an attempt to improve current or future employee performance by
increasing an employees ability to perform through learning, usually by changing the employees
attitude or increasing his or her skills and knowledge. Since the beginning of the twentieth century
and especially after World War II, training programs have become widespread among
organizations, involving more and more employees and also expanding in content. In India the
banking industry becoming more competitive than ever, private and public sector banks are
competing with each other to perform well. The executives of the bank are now in the position to
modify their traditional human resources practice in to innovative human resources practices in
order to meet the challenges from other competitive banks.

This study is build upon the previous training literatures by providing a detailed examination of
training needs assessment and organizational effectiveness based upon development based strategy.
The question of the amount of training needs assessment and the effect of training is answered
through evaluation process. The purpose of training need assessment is to add value to an
organization. Hence, evaluation measures the progress in achieving this goal by purposefully
improving training programs and measuring their worth. The training programs are established by
the needs assessment of training. A thorough needs assessment leads to effective and efficient
training, which increases the likelihood that evaluation will demonstrate successful value added
outcomes (Armstrong, 2007). In todays complex and fast changing organizational environment,
developing human resources is of paramount importance and training has now become one of the
important segments of Human Resource Development (HRD) process. That is why the efficiency
of any organization depends directly on how well its employees are trained. Training motivates
employees to work efficiently and it is widely accepted as a problem solving tool. The Human
Resource Development department has to play a more proactive role in shaping the employees to
fight out the challenges. The banks not only have to make plans and policies and devise strategies,
the actual functionaries have to show willingness, competence and effectiveness in executing the
said policies and strategies. Both training and development are necessary for any organization.

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In the opinion of Dr. Leonard, Nadler development is concerned with providing learning
experience to employees so that they may be ready to move into a new direction that
organizational change may require. So it is evident that training and development forms an integral
part of human resources development process and should be in unison. In commercial
organizations like banks, HRD departments have the advantages of not being excessively burdened
with daytoday problems of running the banks or ensuring profitability of individual transactions.
They are in positions to take strategic and long term view of the competitive advantage of the
human resources as well as identify areas of professional weaknesses to rectify well before any
damage takes place in the organization. According to Flippo, Training is the act of increasing
knowledge and skill of an employee for doing a particular job. Dale S. Beach Training is the
organized procedure by which people learn knowledge and or skills for a definite purpose.
Berger (2000) states the expenditure on human resource is imperatively high rising. Given the role
of training as a business strategy it is important that any training effort be targeted and relevant.
Thus, the process by which training needs are identified and addressed becomes a critical issue for
organizations. It will introduce basic needs assessment terminology and discuss potential options
for the process.

TRAINING STRATEGIES USED IN BANKS

Training program should be repeated at regular intervals for individuals to provide reinforcement
of learning. At present the following types of programs will be designed and conducted by the
training centers.
3.1 Standard program on repetitive basis.
3.2 Role orientation courses in functional areas.
3.3 Special courses and seminars.
3.4 Sales training for supervisory and field personnel.
The first category should be attended by all employees at predetermined intervals. A course will
also be given to all officers when they move from one level of job to another. When an officer is
appointed as Branch, Divisional or Zonal Managers for the first time, he would be assigned to a
program to help him understand the demands of his new role. This will also apply to persons who
are appointed as Heads of a Department in Branch office. The second and third category of courses

8
will be arranged regularly for officers as they enter into that function at the Divisional, Zonal of
Central office level in case they have not attended a program in that function earlier. No officer
should hold a post in functional area for more than six months unless he has attended a program in
that function. The third categories of courses are special program depending on the specific
requirements of the particular level or the group. The fourth categories of courses are meant for
field staff-development officers and agents.

Training at SBI is based on up gradation of competencies and skills. It is an integral part of their
business strategy. Almost all employees have undergone training to enhance their technical skills
or the softer behavioral skills to be able to deliver the service standards that the company has set
for itself. Besides the mandatory training that Financial Consultants have to undergo prior to being
licensed, they have developed and implemented various training modules covering various aspects
including product knowledge, selling skills, objection handling skills and so on. New training
initiatives includes Lead Management, rural housing and cross selling of financial products.
Training programs on Personal Effectiveness, Leadership Excellence and Art of Living are
delivered by Guest Lecturers.

HUMAN RESOURCES MANAGEMENT

MEANING & DEFINITION:

Simply put, Human Resources Management (HRM) is management functions that helps managers
recruit, select, train & develop members for an organization. Obviously, HRM is concerned with
the peoples dimension in organizations.
We quote three definitions of HRM. But before quoting the definitions, it is useful to point out the
essentials which must find their place in any definition. The core points are:
1. Organizations are not mere bricks, mortar, machineries or inventories. They are people. It is
the people who staff & manage organizations.

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 2. HRM involves the application of management functions & principles. The functions &
principles are applied to acquisitioning, developing, maintaining & remunerating
employees in organizations.
3. Decisions relating to employee must be integrated. Decisions on different aspects of
employees must be consistent with other human resource (HR) decisions.
4. Decision made must influence the effectiveness of an organization. Effectiveness of an
organization must result in betterment of services to customers in form of high quality
products supplied at reasonable costs.
5. HRM functions are not confined to business establishment only. They are applicable to
non-business organizations, too, such as education, health care, recreation & the like.

The following three definitions collectively cover all the five core point:
1. A series of integrated decisions that form the employment relationship; their quality
contributes to the ability of the organizations & the employees to achieve their objectives.
2. Its concerned with the people dimension in the management. science every organization is
made up of people, acquiring their services, developing their skills, motivating them to
higher level of performance & ensuring that they continue to maintain their commitment to
the organization are essential to achieving organizational objectives. This is true regardless
of the type of organization government, education, business, health, recreation or social
action.
3. management is the planning, organizing, directing & controlling of the procurement,
development, compensation, integration, maintenance & separation of human resource to
the end that individual, organizational & social objectives are accomplished.
Thus, HRM refers to set of programmes, functions & activity designed & carried out in order to
maximize both employee as well as organizational effectiveness.

EVALUATION OF HRM IN INDIA

Period Development Outlook Emphasis Status

Status
1920s- Beginning Pragmatism of Statutory, welfare, Clerical

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1930s capitalists paternalism
1940s- Struggling for Technical, legalistic Introduction of Techniques Administrative
1960s recognition
1970s- Achieving Professional, Regulatory, conforming, Managerial
1980s sophistication legalistic, imposition of standards on
impersonal other functions
1990s Promising Philosophical Human values, productivity Executive
through people

HRM MODEL

We follow the model for discussing the subject HRM in this project. As seen in the figure, the
model contains all HR activities. When these activities are discharged effectively, they will result
in a competent & willing workforce who will help realize organization goals. There is another
variable in the model environment. It may be state that the HR function does not operate in
vacuum. It is influenced by several external & internal forces like economical, technological,
political, legal, organizational & professional conditions as will be explained in the next chapter.

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 Nature of HRM

Human Resource
Planning
Job Analysis

Recruitment

Selection

Placement

Training & Development

Remunaration

Motivation
Compet
ent & Organizat
Participative
t
en
m
on
ir
nv
E

Willing ional
Management Goals
Communication Work
force
Safety & health

Welfare

Promotions, etc.

Industrial Relations

Trade Unionism

Disputes & their

Settlement
Future of HRM

Ethical issues in HRM

International HRM

TRAINING AN INTRODUCTION

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MEANING & DEFINATIONS

Successful candidates placed on the jobs need training to perform their duties effectively. Workers
must be trained to operate machines, reduce scrap and avoid accidents. It is not only workers who
need training. Supervisors, managers and executives also need to be developed in order to enable
them to grow and acquire maturity of thought and action. Training constitutes on going process in
any organization.

Training plays an important role in man-power development even at the level of industrial unit.
Training comes next to recruitment and selection. It is necessary, useful and productive for all
categories of workers and supervisory staff. Training is practical in nature and is useful in order to
create sense of confidence in the minds of the newly recruited workers. It is for developing skills
among workers. Training is necessary due to technological changes rapidly taking place in the
industrial field. Expenditure on training is a profitable investment to the employer. Training is,
now, common in all industrial units. It is an internal aspect of personality development.

Every organization needs to have well trained and experienced people to perform the activities that
have to be done. If the current or potential job occupant can meet this requirement, training is not
important. But when this is not the case, it is necessary to raise the skill levels and increase the
versatility and adaptability of employees. As the jobs become more complex, the importance of
employee training also increases. In a rapidly changing environment, employee training is not only
an activity that is desirable but also an activity that an organization must commit resources to if; it
is to maintain a viable and knowledgeable work force.

EVALUATION OF TRAINING

Labor, Department of, executive department of the United States government, created by an act of
Congress in 1913to foster, promotes, and develops the welfare of the wage earners of the United
States, to improve their working conditions and to advance their opportunities for profitable
employment. The department is administered by a secretary, who is appointed by the president

13
with the approval of the Senate. Predecessor agencies were the Bureau of Labor in the Department
of the Interior (1884) and the Department of Commerce and Labor (1903).

The Department of Labor is made up of offices, bureaus, and administrations. The following are
among the major operating units. Under the office of the deputy secretary are included the
Employees' Compensation Appeals Board, Office of Small Business and Minority Affairs, Office
of Administrative Law Judges, and Wage Appeals Board.

The Employment and Training Administration (ETA) oversees programs to furnish job training and
placement services; supervises payment of unemployment compensation under federal and state
laws; and conducts national employment and training programs for Native Americans, migrant
workers, and other disadvantaged citizens. The ETA includes the U.S. Employment Service,
Unemployment Insurance Service, Office of Job Training Programs, Bureau of Apprenticeship and
Training, and Office of Strategic Planning and Policy Development.

The Employment Standards Administration enforces laws regulating wages and hours and
prohibiting sex and age discrimination in employment; administers workers' compensation for
work-connected disabilities among federal and certain private employees; and supervises equal
opportunity requirements for federal contractors. It includes the Wage and Hour Division, Office of
Workers' Compensation Programs, and Office of Labor-Management Standards.

The Occupational Safety and Health Administration enforce the Occupational Safety and Health
Act of 1970. It issues regulations, conducts inspections, and issues citations for noncompliance
with safety and health standards established by the act. The Mine Safety and Health Administration
develops mandatory standards of health and safety, issues penalties for violations, investigates
accidents, and provides training programs in cooperation with the mining industry. It works with
the states to reduce mine accidents and occupational diseases.

Income Security Act (ERISA) of 1974. The Bureau of Labor Statistics is the government's main
fact-gathering agency in the field of economics. It publishes statistics on employment, wages,
hours of work, work stoppages, prices, and occupational health and safety.

The Veteran's Employment and Training Service protects reemployment rights of veterans and
provides them with maximum employment opportunities. The Women's Bureau formulates policies
to promote the welfare of wage-earning women by improving their working conditions and their

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opportunities for professional employment. The Bureau of International Labor Affairs helps to
formulate international economic policies that affect American workers, represents the U.S. in
international trade negotiations, and carries out technical assistance projects abroad.

INDIAN SCENARIO

Employee education has become an integral part of todays corporate philosophy (read strategy).
Underwriting tuition fees (partly or fully), for both technical and managerial courses, is common in
most companies which take great pride in being called learning organizations. This is a
necessary appellation if an organization wants to attract and retain the best talent pool. It is
however imperative to link the money spent on employee education with career growth and other
business needs.

A recent study done in the US by Adventuress, a Boston based research and consulting company,
revealed that corporate America spent $10 billion in tuition reimbursement. Interestingly, a leading
high-tech company acknowledged that it spent $20 million per annum on tuition reimbursement,
but a subsequent audit revealed that the actual amount was $50 million. The pertinent question is
can an organization calculate the RoI on employee education? The answer is more complicated
than it appears. Realization of RoI comes to the fore because of the attrition level, agrees Satyen
Parekh, managing director, Borland India. The RoI calculated for technical skills training is much
easier than managerial or functional responsibility. For the latter a long-term perspective has to be
considered. Parekh, in fact, believes that an organization should be able to judge on whom to
invest and whom not to at the recruitment level itself. Knowledge can be implemented by
training, but inner capabilities are ingrainedthen if you take in a person, no matter what the
training, attrition will remain, asserts Parekh.

Whom to sponsor?

It is significant for an organization to analyze which employee should be selected for continuous
training. Furthermore, the company should be discerning about the amount of reimbursement. For
instance, if someone wants to do an MBA, then 50 percent of the fees should be supplemented,
adds Parekh.

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Types of initiatives

The main areas of employee education are technical and managerial streams. An organization like
HCL Comnet trains its employees worldwide on technical and transition management modules.
The organization has a technical skills certification reimbursement policy. SM Arif, vice president
HR, HCL Comnet, says, Our culture of learning is built around the popular programme EDGE
(Employee Development, Growth and Empowerment) which aims at making the company a
knowledge driven organizationan organization where growth is measured not just by profits
but also from the synergetic growth of each employee. The Top Gun Technology School and the
Star-Tech School are two skill-up gradation initiatives under this programme.

Efunds International introduced a formal programme to sponsor employee education, earlier this
year. Dr Pradnya Parasher, senior director, human resources, eFunds International India, informs,
The FaCE (Facilitating Continuous Education) scheme was launched to encourage, support and
facilitate associates who are enrolled in advance or specialized courses to complete their course
and to motivate those interested to take up courses relevant to their work area.

While eFunds employees are entitled to a reimbursement of Rs 50,000 per course, HCL Comnet
has committed a minimum of 14 man-days per employee, instead of limiting the amount of money
spent.

Intangible returns

Most experts agree that the RoI on employee education is intangible. Says Dr Parasher, A happy,
satisfied and motivated associate is the most valuable assetso that would be the best return on
this investment for us. Asserting that the benefits of this investment are difficult to calculate, she
adds: We are talking of long-term and intangible benefits or returns. So, from direct and
tangible benefits like longer and more stable tenures, to intangible (and immeasurable) benefits
like employee satisfaction, the impact of an initiative like this is truly immense. She
acknowledges that while the actual returns cannot be fully measured, the RoI could perhaps be
estimated in terms of indicators such as longer tenure; promotions to higher levels of responsibility
and cross transfers, and also the success of employees at these higher levels of responsibility. Arif

16
adds that the intangible benefits also include high motivation and commitment levels of
employees, improved customer service and value additions in services.

Win-win scenario

Sponsoring of employee education is a win-win situation for both the employee and the employer.
Dr Parasher explains how:

The employee gains by the sponsorship, which is not just in monetary terms. In most cases
the education that the employee has opted for is in a field related to the work. Mentoring by
some of the best in the industry is an added bonus.
The organization also gains significantly. Benefits include a longer tenure for the
employee; promotions to higher levels of responsibility and cross transfersboth vertical
and lateral movement, and also the success of the employees at these higher levels of
responsibility. Overall development of associates and increased productivity are the
benefits. A motivated employee more often than not sets off a positive ripple effect in the
organization. The key takeaway for any organization is the contribution towards building
human assets and building credibility for the company.

Focus of training

The focus of education should be a clear and progressive career map. This is not always easy when
hiring is in large numbers. Parekh concedes that IT organizations hiring people in hundreds or
thousands might find it difficult to form career graphs for each employee, compared to companies
that are hiring fewer people and can offer a more structured career path. The perspective has to be
in terms of enhancing abilities and creating a passion in employees that they should not look
elsewhere rather than reducing attrition per se. More than just creating loyalty, education should
create a fire in their belly, says Parekh with conviction.

A bad investment

In an era of constant attrition, does the company consider it a bad investment when a sponsored
employee leaves soon after completing a course? Answers Parekh, No company can be sure that

17
all people being sent for training will continue to serve the organisation. He adds that if one out of
10 employees leaves it is understandable, if three leave then there is a problem, however if four
or more leave there is something wrong with the training programme.

Apparently, the only way an organization can ensure that reimbursing the tuition fee is not a dead
investment, is to be selective in its choice of its employee and the training being sponsored.

TYPES OF TRAINING

There are different kinds of training in relation to different types of classification. Such as
behavioral or technical training, on the job of the job training, etc.

Behavioral training are those in which there are needs to change the attitude of the employee,
develop their personality, etc. technical ones are those where a kind of proper knowledge & skills
to be developed.

Managers' Course: The Manager-as-Mediator Seminar: How to mediate conflict between

employees Employees' Course: The Self-as-Mediator Seminar: How to resolve conflict with others

TODAYS NEED

Every morning when she came into the office and opened her drawer, she would find a condom
lying under it. She complained and started to have the door of her office locked. But that
somebody was one step ahead the condom was slipped under the office door. Outraged, afraid
and fed up by the eerie situation, the woman government employee was forced to seek a transfer to
another station. No, this is not a fictionalized tale; it is the story of an IAS officer in the Capital,
retold by a woman activist.

And if someone as educated as that can be sexually harassed and be forced to flee the situation,
imagine how much more difficult it must have been for a junior bank employee who was
repeatedly asked to stay back by the vice-president of the establishment. While she would work, he
would play golf and come back to office, sit himself on the table in shorts and dictate his
presentation. Then he'd insist on dropping her back home.

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The two examples are only to illustrate how subtle and ambiguous this harassment to women can
be. While the Infosys incident, where the company's high profile executive had to resign due to a
case of sexual harassment and wrongful termination of service filed against him and the company,
has brought sexual harassment back into the news, the problem in India goes far beyond the
organized corporate sector and impacts the lives of the 92 per cent of women in the country who
work in the unorganized sector.

But first for the corporate environment, where the so-called cream of society works. Harassment
experts say that there is harassment of two kinds in this environ: the `hostile' atmosphere, where
rude, sexist or offensive jokes are cracked, prolonged staring; off-the-cuff remarks of a sexual
nature, etc are made. The other is called Quid Pro Quo (this for that) harassment, in which a boss
threatens to fire an employee or withhold a promotion unless the employee agrees to sexual favors.
Harassment can also involve the promise of a raise or promotion in exchange for sex, in formal
terms, called sexual blackmail or sexual bribery.

Though in India there may be hundreds of cases such as the Infosys one, there are fewer women
likely to file a complaint. Why is this so? "In Western society, the awareness is much more," says
C. Mahalingam, Group Vice-President - HR, Scandent Group. But this could be because in India,
women are used to lewd comments and leering stares even outside of workplace and they do not
think it's serious enough to rake up an issue.

But after the Supreme Court judgment on sexual harassment and a few cases coming to light,
things have changed somewhat. Indian companies too are waking up to the matter. Besides, MNCs
that are operating from India and are used to US laws, have very clear guidelines on what
constitutes sexual harassment.

Sexual harassment, in fact, can take many forms such as unwelcome sexual advances, requests for
sexual favors, or display of derogatory pictures and other verbal or physical conduct of a sexual
nature. This is especially when submission to such conduct is made a condition of an individual's
employment and when submission to or rejection of such conduct by an individual is used as the
basis for employment decisions affecting the individual.

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It also constitutes sexual harassment when such conduct has the purpose or effect of interfering
with an individual's work performance or creating an intimidating hostile or offensive work
environment.

In India, it was the Supreme Court landmark judgment on `Sexual Harassment of Women at
Workplace in Vishakha & others Vs. State of Rajasthan & others' that gave the issue its much-
needed recognition. With a lack of legislation in place on the subject, in 1997, the Supreme Court
referred to the international conventions and norms that had been ratified by India and interpreted
gender equality of women, in relation to work and held that sexual harassment of women at the
workplace, which is against their dignity, is volatile of Articles 14, 15(1) and 21 of the
Constitution. It is also volatile of the fundamental rights under Article 19(1) (g) `to practice any
profession or to carry out any occupation, trade or business'. It felt that the right to life means a life
with dignity and that gender equality itself includes protection from sexual harassment and the
right to work with dignity. The court also stated that these norms and guidelines were to be treated
as the law of the land until appropriate legal provisions were enacted.

Taking the cue from here and in an effort to promote the well being of women employees at the
workplace, the National Commission for Women charted a Code of Conduct for the Workplace,
which included a list of dos and don'ts in accordance to the Supreme Court guidelines. It also
initiated meetings with PSUs, banks, educational institutions and other organizations. A Bill on the
issue was also formulated in 2000 and has been pending since.

However, the Sexual Harassment of Women at their Workplace (Prevention) Bill, 2000 does not
have widespread acceptance. Women's groups find it inadequate and would like a nation wide
debate on the subject before the law is enacted. They point out that the pending Bill concentrates
more on the organized sectors, while 92 per cent of women workers in India are in the unorganized
sector. Besides, peculiar to India are practices that force women from socially disadvantaged
sections to compromise sexually. Known by different names such as Jogin, Basavi, Kalavat,
Mathangi and devadasi, these practices have religious sanction but constitute sexual harassment.
There are many aspects to sexual harassment, some are not physical in nature but makes a
woman's life a living hell. All these need to be taken into account in the Bill. The Bill also does not
adequately address the unorganized sector and contract labor, the most rampant and exploited form

20
of labor in India," says Ranjana Kumari, Director of the Centre for Social Research and
coordinator of the Joint Action Front for Women.

Organizational front

However, the fact that the Bill is pending should not make any difference to organizations that
want to put in place what was specified by the Supreme Court as that itself constitutes the law
today. The Court directed that the head of the organization should constitute a Complaints
Committee for the purpose of sexual harassment headed by a woman and with not less than half its
members of the second sex. Further, to prevent the possibility of any undue pressure or influence
from senior levels, the Committee is required to involve a third party either a non-government
organization or someone else who is familiar with the issue of sexual harassment. Detailed rules
and regulations on conducting enquiries and handling complaints have also been provided.

Indian corporate

Though women's groups recently noted that many organizations have not acted upon the directions
of the Supreme Court yet and no such committee exists in several companies, R. Vidyasagar, Vice-
President, HR, i-flex Solutions, feels Indian companies are finally waking up to the issue. He says
the Indian Government too has come out very strongly against sexual harassment. And
multinational companies have very stringent rules on the matter. Indian companies have no option
but to lay down the guidelines and educate their employees on office etiquette.

At Wipro, the Complaints Committee with three women employees looks into the matter.
According to Joydeep Bose, General Manager, Corporate HR, Wipro Ltd., new recruits are given a
complete rundown on how `to behave or not behave with women employees'. Even sending
unsavory e-mail messages as been censured by companies. "We have taken steps against
employees who have indulged in such activities," reveals Bose.

Mahalingam strongly feels all employees need to go through a training programme that will
educate them on the company's diversity policy and harassment policies. Diversity policy helps an
organization to become more acceptable to people of both sexes, all races, communities, religion
and sexual orientation. This even includes employing the physically challenged. "The only way to

21
reduce these sorts of problems is by communicating constantly with employees and building a
confidence in them about approaching the Council or the superior," says Mahalingam.

In fact, developments in the corporate world have shown that sexual harassment is one of the most
pressing concerns facing companies today. When an employee claims harassment, the company is
faced with decisions that could make or mar it. In the US, most employers have approached this
issue with the utmost seriousness and adopted comprehensive policies to minimize the risk of a
lawsuit. In India, both employers and employees are yet to feel the pain of litigation. But women
are waking up slowly and in the not too distant future leave alone corporate women employees,
one hopes even farm hands and contract labor may stand up for exploitation and sexual
harassment. Now - more than ever - employees must understand that there's far more to workplace
harassment and discrimination than just sex. Is your organization prepared for this changing
world?

It seems as if, every day, the EEO and the courts expand the definition of harassment and
discrimination. In this changing environment it's difficult to know - or understand what's allowed
and what's not allowed at work. This brand new video training program breaks ground by
dramatically illustrating:

The ever expanding range of behaviors that create a hostile work environment
The differences between free speech at work and protected speech in public
The consequences for individuals who exhibit unacceptable behavior
The legal threats that companies or organizations can encounter

Key Learning Points:

Harassment and discrimination hurt everyone

Which behaviors now contribute to a hostile work environment
The areas in which people and organizations cannot discriminate
When harassment can become discrimination, or "tangible employment action" and the
implications of those

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 Using dramatic examples in white and blue collar, hospitality, health care, and retail
settings, this video will protect your organization by communicating everyone's legal
responsibilities and is for training on diversity as well.

METHODS OF TRAINING

There are many different training and development methods used in an organization. On-the-job
training, informal training, classroom training, internal training courses, external training courses,
on-the-job coaching, life-coaching, mentoring, training assignments and tasks, skills training,
product training, technical training, behavioral development training, attitudinal training and
development, accredited training and learning, distance learning - all part of the training menu,
available to use and apply according to individual training needs and organizational training needs.

ON-THE-JOB TRAINING

It is delivered to employees while they perform their regular jobs. In this way, they do not lose
time while they are learning. After a plan is developed for what should be taught, employees
should be informed of the details. A timetable should be established with periodic evaluations to
inform employees about their progress. On-the-job techniques include orientations, job instruction
training, apprenticeships, internships and assistantships, job rotation and coaching.

OFF-THE-JOB TECHNIQUES

It include lectures, special study, films, television conferences or discussions, case studies, role
playing, simulation, programmed instruction and laboratory training. Most of these techniques can
be used by small businesses although, some may be too costly.

ORIENTATIONS

They are for new employees. The first several days on the job are crucial in the success of new
employees. This point is illustrated by the fact that 60 percent of all employees who quit do so in
the first ten days. Orientation training should emphasize the following topics:

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 The company's history and mission.
The key members in the organization.
The key members in the department, and how the department helps fulfill the mission of
the company.
Personnel rules and regulations.

Some companies use verbal presentations while others have written presentations. Many small
businesses convey these topics in one-on-one orientations. No matter what method is used, it is
important that the newcomer understand his or her new place of employment.

LECTURES

The present training material verbally and are used when the goal is to present a great deal of
material to many people. It is more cost effective to lecture to a group than to train people
individually. Lecturing is one-way communication and as such may not be the most effective way
to train. Also, it is hard to ensure that the entire audience understands a topic on the same level; by
targeting the average attendee you may under train some and lose others. Despite these drawbacks,
lecturing is the most cost-effective way of reaching large audiences.

ROLE PLAYING AND SIMULATION

They are training techniques that attempt to bring realistic decision making situations to the
trainee. Likely problems and alternative solutions are presented for discussion. The adage there is
no better trainer than experience is exemplified with this type of training. Experienced employees
can describe real world experiences, and can help in and learn from developing the solutions to
these simulations. This method is cost effective and is used in marketing and management training.

AUDIOVISUAL METHODS

Such as television, videotapes and films are the most effective means of providing real world
conditions and situations in a short time. One advantage is that the presentation is the same no
matter how many times it's played. This is not true with lectures, which can change as the speaker

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is changed or can be influenced by outside constraints. The major flaw with the audiovisual
method is that it does not allow for questions and interactions with the speaker, nor does it allow
for changes in the presentation for different audiences.

JOB ROTATION

It involves moving an employee through a series of jobs so he or she can get a good feel for the
tasks that are associated with different jobs. It is usually used in training for supervisory positions.
The employee learns a little about everything. This is a good strategy for small businesses because
of the many jobs an employee may be asked to do.

APPRENTICESHIPS

It develops employees who can do many different tasks. They usually involve several related
groups of skills that allow the apprentice to practice a particular trade, and they take place over a
long period of time in which the apprentice works for, and with, the senior skilled worker.
Apprenticeships are especially appropriate for jobs requiring production skills. Internships and
assistantships are usually a combination of classroom and on-the-job training. They are often used
to train prospective managers or marketing personnel.

PROGRAMMED LEARNING,

Computer-aided instruction and interactive video all have one thing in common: they allow the
trainee to learn at his or her own pace. Also, they allow material already learned to be bypassed in
favor of material with which a trainee is having difficulty. After the introductory period, the
instructor need not be present, and the trainee can learn as his or her time allows. These methods
sound good, but may be beyond the resources of some small businesses.

LABORATORY TRAINING

It is conducted for groups by skilled trainers. It usually is conducted at a neutral site and is used by
upper- and middle management trainees to develop a spirit of teamwork and an increased ability to
deal with management and peers. It can be costly and usually is offered by larger small businesses.

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All supervisors and managers need to able to provide training and development for their people -
training develops people, it improves performance, raises morale and increases the health of the
business. The leader's ethics and behavior set the standard for their people's, which determines how
productively they use their skills and knowledge. Training is nothing without the motivation to
apply it effectively. A strong capability to plan and manage skills training, the acquisition of
knowledge, and the development of motivation and attitude, largely determines how well people
perform in their jobs.

It's important that as a manager you understand yourself well before you train others - your own
skills (do you need training in any important areas necessary to train others?) - Your own style
(how you communicate, how you approach tasks, your motives - they all affect the way you see
the role and the person you are training). And it's vital you understand the other person's style and
personality too - how they prefer to learn - do they like to read and absorb a lot of detail, do they
prefer to be shown, to experience themselves by trial and error? Knowing the other person's
preferred learning style helps you deliver the training in the most relevant and helpful way. It helps
you design activities and tasks that the other person will be more be more comfortable doing,
which ensures a better result, quicker. Various models and tests are available to help understand
learning styles - look at the Kolb model below:

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ACTIVITY-MENTORING TRAINING

'Activity-mentoring' training is a highly productive and effective new method of training people in
organizations - especially in teams and departments. The activity-mentoring approach uses several
new integrated techniques which produce more reliable and relevant training outputs, in terms of
individual skills, attitudinal development, and direct job and organizational performance
improvement. The approach is facilitative rather than prescriptive, and broadly features:

strategic assessment of organizational and department priorities and 'high-yield' training

needs
interpreted discussion with line-managers of training delegates and strategic managers of
the organization
pre-training skills/behavioral needs-analysis - all training delegates - and pre-training
preparatory work

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 small groups - practical workshops - short sessions - highly participative and
situation/solution-based - focused on practical job issues, individual personality/learning
style and organizational priorities
individually agreed tasks and assignments - focused on practical priorities and individual
needs (SMART and WIIFM factors)
follow-up coaching and mentoring one-to-one support - giving high accountability and
reliable deliverables
ongoing feedback and review with line-managers and strategic managers - coaching/task
notes for line managers

The process works on several different levels: individual, team, task, organizational and strategic.
Activity mentoring also gives strong outputs in skills, behavior and job priority areas, as well as
being strongly motivational and where necessary resolving conflict and attitudinal issues. For
advice about activity-mentoring training please get in touch.

MENTORING COST ANALYSIS AND JUSTIFICATION

Mentoring can be provided in various ways and programmes take a variety of shapes. Mentoring
can be external, where the mentoring is essentially provided by external people, or an internal
activity, using mentors within the organization. Due to the newness of mentoring as an organized
process, and because mentoring programs are so varied, statistics as to general costs and returns
across industry are not easy to find. Here however are general cost indicators for a program
essentially delivered by internally appointed mentors.

The main elements of a mentoring program that carry quantifiable cost would be:

Training of mentor(s) - comfortably achievable for 1,000/head - it's not rocket

science, but selection of suitable mentor is absolutely critical - good ones need little
training; poor ones are beyond any amount of training.
Mentor time away from normal activities - needs to be a minimum of an
hour a month one-to-one or nothing can usefully be achieved, up to at most a couple of
hours a week one-to-one, which would be intensive almost to the point of overloading the
mentoree. That said, there may be occasions when the one-to-one would necessarily

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 involve a whole day out for the mentor, for instance client or supplier visits. Say on average
a day a month including the associated administration work.
Overseeing the program, evaluating and monitoring activity,
progress and outputs - depends on the size of the program, i.e. number of mentors
an number of mentorees - if the mentoring is limited to just a single one-to-one relationship
then it's largely self-managing - if it's a program involving several mentors an mentorees
then I'd estimate an hour per quarter (3 months) per one-to-one mentoring relationship -
probably the responsibility of an HR or training manager. If this person with the
overview/monitoring responsibility needs external advice you'd need to add on two or three
days consultancy costs.
(Mentoree time away from normal activities - effective mentoring should
ideally integrate with the mentoree's normal activities, and enhance productivity,
effectiveness, etc., so this is arguably a credit not a debit.)

Having said all this, unless the training aim is simply to impart knowledge, for which conventional
classroom training and course work are very appropriate, I'd go for mentoring every time,
especially if the aim is to truly develop people and organizational effectiveness. If you'd like help
establishing a mentoring program, internal or external, or assessing feasibility and providing
justification please contact us for advice.

E-LEARNING

Culture: Will corporate culture support e-Learning? How does a company view employee
development, and who is responsible for human resource development? The traditional training
model--in which the manager identifies employee development needs, the training director
identifies a solution, and the employee attends some type of classroom-based program--will not
work with e-learning Strategies because some control shifts to the individual learner. Indeed, the
opportunity for employees to self-identify. Development needs is touted as one of e-Learnings
major benefits. Employees dont have to wait for a training director to identify a learning need;
they can assess individual skill gaps and access information as they need it.

Some questions to consider when assessing corporate culture and readiness include

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 What is the business case for e-Learning?
How does e-Learning support business goals and objectives?
What value does the company place on learning?
What is the companys definition of learning?
Are learning and training viewed as synonymous terms?
Where and how does the company believe learning should occur?
Who determines when learning should occur?
Does the company support employees who seek out non-traditional development programs or
experiences?
Content: Is the instructional content appropriate for e-Learning? Technology has made huge
advancements enabling e-Learning to mimic a traditional classroom-based learning experience.
Online videos can provide dramatic representations of key content areas; audio files can reinforce
displayed information, and online discussions and collaborative whiteboards facilitate interactive
experiences among geographically dispersed groups. However, there are still some instructional
content areas that may not be suitable for e-Learning. Psychomotor skills, in particular, require
hands-on practice and interactive demonstrations for learners to achieve mastery.
Key questions to consider when evaluating e-Learning programs for a specific content area include
What are the learning objectives that the company is trying to achieve?
What are the skills the company is trying to teach?
Are the skills cognitive, attitudinal, or motor skills?
Is the problem well-defined?
What instructional methods are required to deliver the content?
What type of follow-up, practice, or support is required to achieve mastery?
What degree of learning interactivity or collaboration is required?

Capability: Capability involves the wide spectrum of computer hardware, infrastructure, IT

support, and instructional design. Organizations infrastructure support e-Learning programs?
Computer access, in addition to multimedia capability, is required to capture the full advantage of
many e-Learning programs. The Internet provides commercial e-Learning programs but may not
be available to all learners. Intranets can distribute e-Learning, but what happens if a company
doesnt have an internal intranet?

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Some questions to consider when evaluating internal capability for e-Learning initiatives include:
Do employees have access to computers?
Do computers support multimedia applications?
What system factors may limit access to all or parts of e-Learning programs?
Does the company have the capability to design programs or identify appropriate suppliers?
Does the company have the capability to develop and implement e-Learning follow-up support?

Cost: Can the companies afford an e-Learning initiative? The truth is that e-Learning can be
expensive. What are the key cost factors of an e-Learning initiative and how do they compare with
existing programs?
Critical questions to consider when evaluating the cost of an e-Learning initiative include
How extensive is the e-Learning initiative: company-wide, single program, or somewhere in-
between?
Is this a new offering or replacement of an existing program?
What are the advantages and disadvantages of using electronic delivery for this program?
Are internal resources available for tracking and reporting learners?
What internal system capabilities are required for the e-Learning initiative?
What internal system capabilities does the company have?
Are programs commercially available or do they need to be custom designed?

Clients: Will clients (employees) use e-Learning? E-Learning availability doesnt guarantee that
employees will seek out or access resources. Employee acceptance is critical, but how do you get
employees to embrace e-Learning? The key is to address such factors as awareness, attitude, and
access to e-Learning programs.
Some key questions to ask clients or employees when evaluating e-Learning include
Do employees take responsibility for their own learning?
How will employees be informed of e-Learning opportunities and benefits?
How will e-Learning be integrated into current work responsibilities?
Do computers have the hardware capability to support multimedia instructional delivery?
Do employees have the required skills to navigate e-learning programs?

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 Will employees accept e-Learning as an instructional strategy or as an alternative to traditional
classroom-based programs?
Who will be eligible for e-Learning programs?

E-Learning-ready: Each success factor--each of the five Cs--requires individual

consideration, as well as an evaluation of the interplay between factors .Initially, issues should be
discussed separately to provide training professionals and business leaders with a starting point to
evaluate e-Learning initiatives. Next, its important to take a close look at complex
interrelationships between the factors to evaluate the merits and feasibility of the whole initiative.
For example, a corporate culture thats supportive of e-Learning will need to have internal IT
capability and budget support or, clients that dont have computer access or skills will require
resources to support e-Learning efforts, affecting the initiatives bottom

LEARNING PRINCIPLES

The Learning Principles are of Short-Term and Long-Term Memory. This principle of long-term
memory may well be at work when you recite or write the ideas and facts that you read. As you
recite or write you are holding each idea in mind for the four or five seconds that are needed for
the temporary memory to be converted into a permanent one. In other words, the few minutes that
it takes for you to review and think about what you are trying to learn is the minimum length of
time that neuroscientists believe is necessary to allow thought to go into a lasting, more easily
retrievable memory?

PRINCIPLE ONE-THE BRAIN IS A COMPLEX ADAPTIVE SYSTEM.

Perhaps the most potent feature of the brain is its capacity to function on many levels and
in many ways simultaneously. That is one reason why we have here subsumed two former
principles ("The brain is a parallel processor" and "Learning engages the entire
physiology".) Thoughts, emotions, imagination, predispositions and physiology operate
concurrently and interactively as the entire system interacts with and exchanges
information with its environment. Moreover, there are emergent properties of the brain as a
whole system that can not be recognized nor understood when the parts alone are explored.

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 Education MUST come to terms with the complex, multifaceted nature of the human
learner

PRINCIPLE TWO-THE BRAIN IS A SOCIAL BRAIN:

"For the first year or two of life outside the womb, our brains are in the most pliable,
impressionable, and receptive state they will ever be in" (Zen Physics, P.18). We begin to
be shaped as our immensely receptive brain/minds interact with our early environment and
interpersonal relationships. Vygotsky was partially responsible for bringing the social
construction of knowledge to our awareness. It is through this dynamic interaction with
others that therapy works, for instance. It is now clear that throughout our lives, our
brain/minds change in response to their engagement with others - so much so that
individuals must always be seen to be integral parts of larger social systems. Indeed, part of
our identity depends on establishing community and finding ways to belong. Learning,
therefore, is profoundly influenced by the nature of the social relationships within which
people find themselves.

PRINCIPLE THREE-THE SEARCH FOR MEANING IS INNATE:

In general terms the search for meaning refers to making sense of our experiences. This is
survival-oriented and basic to the human brain/mind. While the ways in which we make
sense of our experience change over time, the central drive to do so is life long. At its core
the search for meaning is purpose and value driven. Something of the extent of human
purposes was expressed by Maslow. Included are such basic questions as "who am I?" and
"why am I here?" Thus, the search for meaning ranges from the need to eat and find safety,
through the development of relationships and a sense of identity, to an exploration of our
potential and the quest for transcendence.

PRINCIPLE FOUR-THE SEARCH FOR MEANING OCCURS THROUGH"

PATTERNING":
In patterning we include schematic maps and categories, both acquired and innate. The
brain/mind needs and automatically registers the familiar while simultaneously searching
for and responding to novel stimuli. In a way, therefore, the brain/mind is both scientist and

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 artist, attempting to discern and understand patterns as they occur and giving expression to
unique and creative patterns of its own. It resists having meaninglessness imposed on it. By
meaninglessness we mean isolated pieces of information unrelated to what makes sense to
a particular learner. Really effective education must give learners an opportunity to
formulate their own patterns of understanding.

PRINCIPLE FIVE-EMOTIONS ARE CRITICAL TO PATTERNING:

What we learn is influenced and organized by emotions and mindsets involving
expectancy, personal biases and prejudices, self-esteem and the need for social interaction.
Emotions and thoughts literally shape each other and cannot be separated. Emotions color
meaning. Metaphors are an example as Lakov so aptly describes. Moreover, the emotional
impact of any lesson or life experience may continue to reverberate long after the specific
event that triggers it. Hence an appropriate emotional climate is indispensable to sound
education.

PRINCIPLE SIX-EVERY BRAIN SIMULTANEOUSLY PERCEIVES AND

CREATES PARTS AND WHOLES:
Although there is some truth to the "left-brain right-brain" distinction, that is not the whole
story. In a healthy person, both hemispheres interact in every activity, from art and
computing to sales and accounting. The "two brain" doctrine is most useful for reminding
us that the brain reduces information into parts and perceives holistically at the same time.
Good training and education recognize this, for instance, by introducing natural "global"
projects and ideas from the very beginning

PRINCIPLE SEVEN-LEARNING INVOLVES BOTH FOCUSED

ATTENTION AND PERIPHERAL PERCEPTION:
The brain absorbs information of which it is directly aware, but it also directly absorbs
information that lies beyond the immediate focus of attention. In fact it responds to the
larger sensory context in which teaching and communication occur. "Peripheral signals" are
extremely potent. Even the unconscious signals that reveal our own inner attitudes and

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 beliefs have a powerful impact on students. Educators, therefore, can and should pay
extensive attention to all facets of the educational environment.

PRINCIPLE EIGHT-LEARNING ALWAYS INVOLVES CONSCIOUS AND

UNCONSCIOUS PROCESSES:
One aspect of consciousness is awareness. Much of our learning is unconscious in that
experience and sensory input is processed below the level of awareness. That means that
much understanding may NOT occur during a class, but may occur hours, weeks or months
later. It also means that educators must organize what they do so as to facilitate that
subsequent unconscious processing of experience by students. In practice this includes
proper design of the context, the incorporation of reflection and met cognitive activities and
ways to help learners creatively elaborate on the ideas, skills and experiences. Teaching
largely becomes a matter of helping learners make visible what is invisible.

PRINCIPLE NINE-WE HAVE AT LEAST TWO WAYS OF ORGANIZING

MEMORY:
Although there are many models of memory, one that provides an excellent platform for
educators is the distinction made by O'Keefe and Nadel between taxon and locale
memories. They suggest that we have a set of systems for recalling relatively unrelated
information (taxon systems, from "taxonomies"). These systems are motivated by reward
and punishment. O'Keefe and Nadel also suggest that we have a spatial/ autobiographical
memory which does not need rehearsal and allows for "instant" recall of experiences. This
is the system that registers the details of your meal last night. It is always engaged, is
inexhaustible and is motivated by novelty. Thus we are biologically supplied with the
capacity to register complete experiences. It is through a combination of both approaches to
memory that meaningful learning occurs. Thus meaningful and meaningless information
are organized and stored differently.

PRINCIPLE TEN-LEARNING IS DEVELOPMENTAL:

Development occurs in several ways. In part, the brain is "plastic". That means that much
of its hard wiring is shaped by the experiences that people have. In part, there are

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 predetermined sequences of development in childhood, including windows of opportunity
for laying down the basic hardware necessary for later learning. That is why new languages
as well as the arts ought to be introduced to children very early in life. And finally, in many
respects there is no limit to growth and to the capacities of humans to learn more. Neurons
continue to be capable of making new connections throughout life.

PRINCIPLE ELEVEN-COMPLEX LEARNING IS ENHANCED BY

CHALLENGE AND INHIBITED BY THREAT:
The brain/mind learns optimally - it makes maximum connections - when appropriately
challenged in an environment which encourages taking risks. However, the brain/mind
"downshifts" under perceived threat. It then becomes less flexible, and reverts to primitive
attitudes and procedures. That is why we must create and maintain an atmosphere of
relaxed alertness, involving low threat and high challenge. However, low threat is NOT
synonymous with simply "feeling good". The essential element of perceived threat is a
feeling of helplessness or fatigue. Occasional stress and anxiety are inevitable and are to be
expected in genuine learning. The reason is that genuine learning involves changes that
lead to a reorganization of the self. Such learning can be intrinsically stressful, irrespective
of the skill of, and support offered by, a teacher.

PRINCIPLE TWELVE-EVERY BRAIN IS UNIQUELY ORGANIZED:

We all have the same set of systems, and yet are all different. Some of this difference is a
consequence of our genetic endowment. Some of it is a consequence of differing
experiences and differing environments. The differences express themselves in terms of
learning styles, differing talents and intelligences and so on. An important corollary is both
to appreciate that learners are different and need choice, while ensuring that they are
exposed to a multiplicity of inputs. Multiple intelligences and vast ranges in diversity are,
therefore, characteristic of what it means to be human.

NEED FOR BASIC PURPOSE OF TRAINING

Reasons for emphasizing the growth and development of personnel include

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 Creating a pool of readily available and adequate replacements for personnel who may
leave or move up in the organization.
Enhancing the company's ability to adopt and use advances in technology because of a
sufficiently knowledgeable staff.
Building a more efficient, effective and highly motivated team, which enhances the
company's competitive position and improves employee morale.
Ensuring adequate human resources for expansion into new programs.

Employees frequently develop a greater sense of self-worth, dignity and well-being as they
become more valuable to the firm and to society. Generally they will receive a greater share of the
material gains that result from their increased productivity. These factors give them a sense of
satisfaction through the achievement of personal and company goals.

The need for training of employees would be clear from the observations made by the different
authorities.
1. TO INCREASE PRODUCTIVITY: Instruction can help employees increase their
level of performance on their present assignment. Increased human performance often
directly leads to increased operational productivity, & increased company profit. Again,
increased performance & productivity, because of training, are most evident on the part of
new employees who are not yet fully aware of the most efficient & effective ways of
performing their jobs.
2. TO IMPROVEMENT QUALITY: Better informed workers are less likely to make
operational mistakes. Quality increase 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: organizations that have a good internal educational programme will have to
make less drastic manpower changes & adjustments in the event of sudden personnel
alterations. When the need arises, organizational vacancies can more easily be staffed from
internal sources if a company initiates & maintains an adequate instructional programme
for both its non-supervisory & managerial employees.
4. TO IMPROVE ORGANIZATIONAL CLIMATE: An endless chain of positive
reactions results from a well-planned training programme. Production & product quality

37
 may improve; financial incentives may then be increased, internal promotions become
stressed, less supervisory pressure ensure & base pay rate increases result. Increased
morale may be due to many factors, but one of the most important of these is the current
state of an organizations 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. Managerial mental state would also improve if supervisors know that they can
better themselves through company-designed development programmes.
6. OBSOLESCENCE PREVENTION: Training & development programmes foster
the initiative & creativity of employees and help to 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: Employees on a personal basis gain individually from their
exposure to educational experiences. Again management development programmes seems
to give participants a wider awareness, an enlarged skill, & enlightened altruistic
philosophy, & make enhanced personal growth possible.

It may be observed that the need for training arises from more than one reason.
I. An increased use of technology in production;
II. Labor turnover arising from normal separations due to death or physical incapacity,
for accidents, disease, superannuation, voluntary retirement, promotion within the
organization & change of occupation or job.
III. Need for additional hand to cope with an increased production of goods & service;
IV. Old employees need refresher training to enable them to keep abreast of the changing
methods, techniques & use of sophisticated tools & equipment.
V. Need for enabling employees to the work in more effective way, to reduce learning
time, reduce supervision time, and reduce waste & spoilage of raw material.
VI. Need for reducing grievances & minimizing accidents rates;
VII. Need for maintaining the validity of an organization as a whole and raising the morale
of its employees.

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 A programme of training becomes essential for the purpose of meeting the specific
problems of a particular organization arising out of the introduction of new lines of
production, changes in design, the demand of competition & economy, quality of material
processed, individual adjustments, promotions, career development job & personal changes
& changes in the volume of business. Collectively, these purpose directly relate to &
comprise the ultimate purpose of organizational training programmes to enhance overall
organizational effectiveness.

THE BENEFITS OF EMPLOYEE TRAINING

HOW TRAINING BENEFITS THE ORGANIZATION

Leads to improved profitability &/or more positive attitude towards profit orientation
Improve the job knowledge & skills at levels of the organization
Improves the morale of the workforce
Helps people identify with organizational goals
Helps create a better corporate image
Fosters authenticity, openness & trust
Improves relationship between the boss & subordinate
Aids in organizational development
Learns from the trainee
Helps prepare guidelines for work
Aids in understanding & carrying out organizational policies
Provides information for future needs in all areas of organization
Organization get more effective decision making & problem solving skills
Aids in development for promotion from within
Aids in developing leadership skills, motivation, loyalty, better attitude & other aspects that
successful workers & manager usually display
Aids in increasing productivity &/or quality of work
Helps keep cost down in many areas, e.g. production, personal, administration, etc.

39
 Develops a sense of responsibility to the organization for being competent &
knowledgeable
Improves labor management relations
Reduces outside consulting cost by utilizing competent internal consultation
Stimulates preventive management as opposed to putting out fires
Eliminates suboptimal behavior (such as hiding tools)
Creates an appropriate climate for growth, communication
Aids in improving organizational communication
Helps employees adjust to change
Aids in handling conflicts, there by helping to prevent stress & tension

BENEFITS TO THE INDIVIDUAL WHICH IN TURN ULTIMATELY

SHOULD BENEFIT THE ORGANIZATION
Helps the individual in making better decision & effective problem solving
Through training & development, motivational variables of recognition, achievement,
growth, responsibility & advancement are internalized and operationalised
Aids in encouraging & achieving self development & self confidence
Helps a person handle stress, tension, frustration & conflict
Provides information for improving leadership, knowledge, communication skills& attitude
Increase job satisfaction & recognition
Move a person towards personal goals while improving interactive skills
Satisfies personal needs of trainers (and trainee)
Provides the trainee an avenue for growth & a say his/her own future
Develop a sense of growth in learning
Helps a person develop speaking & listening skills; also writing skills when exercise are
required
Helps eliminate fear in attempting new task

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BENEFITS IN PERSONNEL & HUMAN RELATIONS, INTRAGROUP &
INTERGROUP RELATIONS & POLICY IMPLEMENTATION

Improve communication between groups & individuals

Aids in orientation for new employee & those taking new jobs through transfer or
promotion
Provides information on equal opportunity & affirmative action
Provides information on other government laws & administrative policies
Improves interpersonal skills.
Makes organizational policies, rules & regulation viable.
Improves morale
Builds cohesiveness in groups
Provides a good climate for learning, growth & co-ordination
Makes the organization a better place to work & live.

THE TRAINING PROCESS/ STEPS IN TRAINING PROGRAMME

Your business should have a clearly defined strategy and set of objectives that direct and drive all
the decisions made especially for training decisions. Firms that plan their training process are more
successful than those that do not. Most business owners want to succeed, but do not engage in
training designs that promise to improve their chances of success. Why? The five reasons most
often identified are:

TIME - Small businesses managers find that time demands do not allow them to train
employees.

GETTING STARTED - Most small business managers have not practiced training
employees. The training process is unfamiliar.

BROAD EXPERTISE - Managers tend to have broad expertise rather than the specialized
skills needed for training and development activities.

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LACK OF TRUST AND OPENNESS - Many managers prefer to keep information to
themselves. By doing so they keep information from subordinates and others who could be useful
in the training and development process.

SKEPTICISM AS TO THE VALUE OF THE TRAINING - Some small business

owners believe the future cannot be predicted or controlled and their efforts, therefore, are best
centered on current activities i.e., making money today.

A well-conceived training program can help your firm succeed. A program structured with the
company's strategy and objectives in mind has a high probability of improving productivity and
other goals that are set in the training mission.

Training programmes are a costly affair, & a time consuming process. Therefore they need to be
drafted very care fully. Usually in the organization of training programmes,

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 Identify
Map the
Training
Approach
Needs
(Phase 2)
(Phase 1)

Track
Produce
Ongoing
Learning
Follow-
Tools
Through
(Phase 3)
(Phase 6)

Calulate
Apply
Measurable
Training
Results
Techniques
(Phase 5)
(Phase 4)

High Impact training Model

Above mentioned is a high impact training model contains six phase process. This focuses on
providing effective, targeting training. We follow this model, to make our training efforts have

43
positive impact on our organization. Each step of this model move our training project forward. To
make the model effectively done, we should complete each phase order. The product of each phase
is the raw material for the next phase.

The Following Table Illustrate Our Activities In Each Phase.

Phase Action Product
1. Identify Gather & analyze appropriate information A description of the specific
Training Needs training needed to improve job
performance
2. Map the Define What needs to be learned to Detailed objective for the
Approach improve job performance. choose the training program. A design plan
appropriate training approach for the training program
3. Produce Create the actual training material Training manuals, Facilitators
Learning Tools guide, Audiovisual aids, Job
Aids, etc.
4. Apply Training Deliver the training as designed to ensure Instructor-led training,
Techniques successful result Computer-based training, One-
on-One coaching, etc.
5. Calculate Assess whether your training/coaching An evaluation report. A
Measurable accomplished actual performance redesigned course, if needed
Results improvement; the result & redesign
6. Track Ongoing Ensure that the impact of training does not Ongoing suggestions& ideas that
Follow-Through diminish support the training.

Phase 1: Identify Training Needs

Needs assessment diagnoses present problems and future challenges to be met through training and
development. Organizations spend vast sums of money on training and development.
Organizational objective are also to be judge before opting for any assessments of Human
Resources. We should opt for the assessment of organizational goals. This phase uncovers the
specific training needed to improve job performance. You investigate the reasons the training is
needed & describe the training you must develop to answer the need.

Phase 2: Map the Training Approach

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After identifying the training needed, you are ready to develop measurable objective for the
training & map out a design plan. The objective defines exactly what the training should
accomplish & provide a means of measuring its success. To develop the design plan, you use the
objective for guidance and prepare an outline for the training that will meet the objectives. The
questions arising here would be:
Who are the trainees?
Who are the trainers?
What methods and techniques?
What should be the level of training?
What principals of learning?
Where to conduct the program?

Phase 3: Produce Effective Learning Tool

This phase involves the actual development of the specific training approach you have chosen. It
might include a training manual or material to support on-the-job training, or it might be an
instructor led course, or it might be something completely different. You may develop the needed
materials yourself or work with others to develop them. This step consists of:
In putting the learner at ease
Instating the importance and ingredients of the job, and its relationship to workflow
In explaining why he is being taught
In creating interest and encouraging questions, finding out what the learner already knows
about his job or other jobs
In explaining the why of the whole job and relating it to some job the worker already
knows
In placing the learner as close to his normal working procedure as possible
In familiarizing him with equipment, material, tools and trade terms.

Phase 4: Apply successful Training Techniques

This is the most important step in training program. The trainer should clearly tell show, illustrate
and questions in order to put over the new knowledge and operations. The learner should be told of

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the sequence of the entire job, and why each step in its performance is necessary. In this phase you
deliver the training to those who need it. If it is an instructor led course, you actually run the course
with students. If you develop job aid to use on the job then in this phase you try then out with those
who will use them.

Phase 5: Calculate Measurable Results

Under this, the trainee is asked to go through the job several times slowly, explaining him each
step. Mistakes are corrected, and if necessary, some complicated steps are done for the trainee for
the first time. The trainee is asked to do the job, gradually building up speed and skills. In this
phase, you review the objective developed in phase 2 & determine weather the training is
achieving them. Now you see why measurable objective are so important. You can now look at
specific measure for success that you identified in phase 2 & see if they have been achieved.

Phase 6: Track Ongoing Follow-Through

If phase 5 confirms that you have created a successful training effort, dont rest on your laurels.
You have a responsibility to ensure that the training continues to be effective. Change is constant in
organizations, & you must respond to changes that affect your training efforts by continuing to
implement suggestions & ideas that support the existing training material & programs. This step is
undertaken with a view to testing the effectiveness of training efforts. This consists in:
Putting the trainee on his own
Checking frequently to be sure that he has followed instructions
Tapering off extra supervision and close follow-up until he is qualified to work with normal
supervision.
It is worth remembering that if the learner hasnt learnt, the teacher hasnt taught.
Training should be evaluated several times during the process. Determine these milestones when
you develop the training. Employees should be evaluated by comparing their newly acquired skills
with the skills defined by the goals of the training program. Any discrepancies should be noted and
adjustments made to the training program to enable it to meet specified goals. Many training
programs fall short of their expectations simply because the administrator failed to evaluate its
progress until it was too late. Timely evaluation will prevent the training from straying from its
goals.

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IMPEDIMENTS TO EFFECTIVE TRAINING

There are many impediments which can make a training program ineffective. Following are the
major hindrance:

MANAGEMENT COMMITMENTS ARE LACKING AND UNEVEN

Most companies do not spend money on training. Those that tend to concentrate on managers,
technicians, and professionals. The rank-and-file workers are ignored. This must change, for, as a
result of rapid technology change, combined with new approaches to organizational design and
production management, worker are required to learn three types of new skills:
1. the ability to use technology,
2. the ability to maintain it, and
3. The ability to diagnose system problems.
In an increasingly competitive environment, the ability to implement rapid change in
products and technology is often essential for economic viability.

AGGREGATE SPENDING ON TRAINING IS INADEQUATE

Companies spend minuscule proportions of their revenues on training. Worse still, budget
allocation on training is the first item to be cut when a company faces a financial crunch.

EDUCATIONAL INSTITUTIONS AWARDS DEGREES BUT GRADUATES

LACK SKILLS
This is the reason why business must spend vast sum of money to train workers in basic skills.
Organizations also need to train employees in multiple skills. Managers, particularly at middle
level, need to be retained in team playing skills, entrepreneurship skill, leadership skills, and
customer orientation skills.

LARGE-SCALE POACHING OF TRAINED WORKERS

Trained workforce is in great demand. Unlike Germany, where local business groups pressure
companies not to poach on another companys employees, there is no such system in our country.
Companies in our country, however, insist on employees to sign bonds of tenure before sending

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them for training, particularly before deputing them to undergo training in foreign countries. Such
bonds are not effective as the employees or the poachers are prepared to pay the stipulate amounts
as compensation when the bonds are breached.

NO HELP TO WORKERS DISPLACED BECAUSE OF DOWNSIZING

Organizations are downsizing and de-layering in order to trim their work forces. The government
should set apart certain funds from the National Renewal Fund for the purpose of retaining and
rehabilitating displaced workers.

EMPLOYERS AND B-SCHOOLS MUST DEVELOP CLOSER TIES

B-Schools are often seen as not responding to labor market demands. Business is seen as not
communicating its demands to B-Schools. This must change. Businessmen must sit with Deans
and structure the courses that would serve the purpose of business better.

ORGANIZED LABOR CAN HELP

Organized labor can play positive role in imparting training to workers. Major trade unions in our
country seem to be busy in attending to mundane issues such as bonus, wage revision, settlement
of disputes, and the like. They have little time in imparting training to their members.

Some highlighting points would be:

The benefits of training are not clear to the top management.
Top management hardly rewards supervisors for carrying out effective training.
Top management rarely plans and budgets systematically for training.
The middle management, without proper incentive from top management, does not account
for training in production scheduling.
Without proper scheduling from above, first line supervisor have difficulty in production
norms if employees are attending training programs.
Behavior objectives are often imprecise.
Training external to employing unit sometime teaches techniques on methods contrary to
practices of the participants organization.
Timely information about external programs may be difficult to obtain.

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 Trainers provide limited counseling and consulting service to the rest of the organization.

IMPROVINT EFFECTIVNESS OF TRAINING

The training programs can be made effective and successful if the following hints are considered:
1) Ensure that the management commits itself to allocate major resources and adequate time to
training. This is what high performing organizations do.
2) Ensure that training contributes to competitive strategy of the firm. Different strategies need
different HR skills for implementation. Let training help employees at all levels acquire the
needed skills.
3) Ensure that a comprehensive and a systematic approach to training exist, and training and
retaining are done at all level on a continuous and on going basis.
4) Make learning one of the fundamental values of the company. let this philosophy percolate
down to all employees in the organization.
5) Ensure that there is proper linkage among organizational, operational and individual training
needs.
6) Create a system to evaluate the effectiveness of training.
7) Specific training should be outlined on the basis of the type of performance required to achieve
organizational goals and objectives. An audit of personal needs compared with operational
requirements will help to determine specific training needs of individual employees. This
evaluation should form a well defined set of performance standards towards which each trainee
should be directed.
8) Attempt should be made to determine if the trainee has the intelligence, maturity and
motivation to successively complete the training programs. If deficiencies or noted in these
respects, the training must be postponed or cancelled till improvements are visible.
9) 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. He should be helped to discover the
rewards and satisfactions that might be available to him through in behavior.
10) The training program should be planned so that it is related to the trainees previous
experiences and background. This background should be used as a foundation for new
development and new behavior.

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11) Attempts should be made to create organizational conditions that are conducive to a good
learning environment. It should be made clear why changes are needed. Any distractions, in the
way of training environment, should be removed. The support of the upper level of
management should be obtained before applying training at lower levels.
12) If necessary, combination of training methods should be selected so that variety is permitted
and as many of the senses as possible are utilized.
13) It should be recognized that all the trainees do not progress at the same rate. Therefore,
flexibility should be allowed in judging the rates of progress in the training program.
14) If possible, the personal involvement or active participation of the trainee should be got in the
raining program. He should be provided with opportunities to practice the newly needed
behavior norms.
15) As the trainee acquire new knowledge, skills or attitude are applies them in job situation, he
should be significantly rewarded for his efforts.
16) The trainee should be provided with regular, constructive feedback concerning his progress in
training and implementation of newly acquired ability.
17) The trainee should be provided with personal assistance when he encounters learning obstacles.

IDENTIFY TRAINING NEEDS

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Training needs can be assessed by analyzing three major human resource areas: the organization as
a whole, the job characteristics and the needs of the individuals. This analysis will provide answers
to the following questions:

Where is training needed?

What specifically must an employee learn in order to be more productive?
Who needs to be trained?

Begin by assessing the current status of the company how it does what it does best and the abilities
of your employees to do these tasks. This analysis will provide some benchmarks against which
the effectiveness of a training program can be evaluated. Your firm should know where it wants to
be in five years from its long-range strategic plan. What you need is a training program to take
your firm from here to there.

Second, consider whether the organization is financially committed to supporting the training
efforts. If not, any attempt to develop a solid training program will fail.

Next, determine exactly where training is needed. It is foolish to implement a companywide

training effort without concentrating resources where they are needed most. An internal audit will
help point out areas that may benefit from training. Also, a skills inventory can help determine the
skills possessed by the employees in general. This inventory will help the organization determine
what skills are available now and what skills are needed for future development.

Also, in today's market-driven economy, you would be remiss not to ask your customers what they
like about your business and what areas they think should be improved. In summary, the analysis
should focus on the total organization and should tell you (1) where training is needed and (2)
where it will work within the organization.

Once you have determined where training is needed, concentrate on the content of the program.
Analyze the characteristics of the job based on its description, the written narrative of what the
employee actually does. Training based on job descriptions should go into detail about how the job
is performed on a task-by-task basis. Actually doing the job will enable you to get a better feel for
what is done.

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Individual employees can be evaluated by comparing their current skill levels or performance to
the organization's performance standards or anticipated needs. Any discrepancies between actual
and anticipated skill levels identify a training need.

WHAT IS TRAINING NEEDS ASSESSMENT?

A tool utilized to identify what educational courses or activities should be provided to employees
to improve their work productivity. Focus should be placed on needs as opposed to desires.
For example, training dollars would be better spent on a new employee in the accounting
department who needs to learn Microsoft Excel for their job duties as opposed to learning
Microsoft Publisher which the employees wants but does not need.

IT TELLS YOU WHERE THE TARGET IS: you may suspect that the problem exists
within your area, but a needs analysis might indicate that the problem extends beyond your group.
For example, if you are having difficulty improving your cycle-time for a product, the issue might
include your manufacture process; but it might also include the engineering or packaging &
shipping department as well. Needs analysis expands your view & helps you pinpoint all targets.

IT TELLS YOU HOW LARGE THE TARGET IS: Maybe the process improvement
challenges are the result of people not knowing how to properly run a new machine, or maybe the
challenge is an organization wide quality issue. It will tell you how big the solution needs to be.

IT TELLS YOU HOW FAR AWAY THE TARGET IS: Perhaps theres only need to
teach the group better telephone skills to address the problem or maybe theres need a more
sophisticated telephone system to handle the increased demand. Your needs analysis will give you
these answers.

IT TELLS YOU WHAT KIND OF ARROWS TO USE: Training comes in several

different shapes & sizes. needs analysis will help you determine whether you need to do coaching,
small group training, large group training, computer based training, or any combination of these &
other options.

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IT TELLS YOU WHO SHOULD SHOOT THE ARROWS: Once you determine the
training need, you consider the best way to meet it. For instance, if you need to do team-building,
it might be best to use internal line managers as trainers because they are part of the team. You
might also want to consider using the training departments instructors. In some cases, an external
resource would best suit your needs. The information you gather for needs analysis helps you make
this decision.

IT TELLS YOU WHEN TO SHOOT: Timing is everything. Some training is best given
immediately, such as new employee safety procedures. Other training, such as learning a new
computer system, may best be given just before the new system is installed or perhaps immediately
after it is installed so training participants can practice as they learn. Training linked to company
initiative may best be presented in a package with other company issues. needs analysis can give
you vital information about the best time to present the training.

IT WARNS YOU ABOUT CROSSCURRENTS: Office politics is the wind share of

any organizational effort. If you expect to hit the target after you identify it, you have to be
knowledgeable about how these crosscurrents will affect your arrows trajectory. Then you can
adjust your stance, your equipment, or your attitude to compensate. You should also keep a
weather-eye out for entrenched opinions about your group or other groups. If turf issues exit, you
can bet they will surface just as you are thinking aim. You need to deal with these situations as part
of your needs analysis work. Clear the air so that nothing stands between you and a successful hit
on the target.

WHY CONDUCT A TRAINING NEEDS ASSESSMENT?

The most important reason for doing needs analysis is to assure that youre training addresses your
situation. It is both costly and embarrassing to recommend a direction that has no impact on the
issue. Even an informal need analysis saves a lot of time, money, & face. The main reason behind a
needs analysis is:
To pinpoint if training will make a difference in productivity and the bottom line.
To decide what specific training each employee needs and what will improve their job

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performance.
To differentiate between the need for training and organizational issues.

HOW IS A TRAINING NEEDS ASSESSMENT PERFORMED?

There are several techniques that can be utilized individually or in combination with each other.
More than one tool should be considered to get a better view of the big picture, however, which
tools are used should be left up to company.

PLANNING YOUR NEEDS ANALYSIS

You know that there is a logical process for doing an entire training project, if properly executed,
ensures a successful training impact. In skipping the first phase, that is identifying targeted training
needs, one may leaped to a solution without determining the real issue. In fact, the solution to his
problem was just as much a mystery to him at the end of his process as it was at the beginning.
When you do needs analysis to target your training needs, you become a detective solving a
mystery: which target is right one? There are plenty of targets out there you could hit with your
solution, but the idea is to identify & then hit the right target. Every great detective has a modus
operandi; a way of working that simplifies the task to be accomplished & keeps the detective on
the right trail. Our modus operandi for identifying targeted training needs would be the needs
analysis process.

Using the Six Step of Needs Analysis Process

The Needs Analysis Process summarizes the actions necessary to complete the first phase of
training process. Like training process, the needs Analysis process has six actions to create six
related products. These six steps are:
o Assess your current situation
o Envision your future
o Gather information
o Sort your information
o Share your results
o Decide your next step

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After completing all six steps, you will know what the issue is & have a plan to address it. This
information is the starting point for the second phase of the training process. This building-block
approach ensures that you have a strong foundation on which to build your training solution. Each
step of the needs analysis is driven by a question focuses on your attention & results in a concrete
product that helps you achieve the next step in the process. These focusing questions & the end
results that come from them are shown on the following chart:

Sr. Action Needed Questions to Ask End Product

No.
1 Assess your Where are we now? A clear definition of the situation
current situation
2 Envision your Where do we want to A clear description of what the future would
future be? look like if the correct actions were taken
3 Gather What do we need to A systematic gathering of relevant ideas &
information know? information from appropriate people to
establish the whole picture
4 Sort your What does this Themes & issues that need to be addressed
information information tell us?
5 Share your How do we use this A summary of issues & recommendations
results information to
forward?
6 Decide your next What action should Action plan far beginning phase 2.
step we take to have
impact?

DEVELOPING A STRATEGY FOR SUCCESS

Although the six actions of needs analysis process are sequential, it may be helpful to look at the
process as a target.

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 Solution

Next Step

Sharing your
Results
Sorting your
information

Gathering
Information

Envisioning
Your Future

Assessing
Your Current
Situation

Strategy

Each ring of the target represents an action that move closer to the solution. Notice that base of this
target is labeled Strategy. Without strategy, to support it, target would fall flat & be extremely
difficult to hit. With an effective strategy, target is:
Visible, to you & to others in the organization
Solid, braced by clear thinking & logical planning
Achievable, with a steady aim
An effective training strategy involves three elements:
Establish a partnership with others
Consider the larger picture

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 Serve the customer

ESTABLISH A PARTNERSHIP WITH OTHERS

Conducting a needs analysis should never be a lonely process. If you want to ensure that you get
the information you need, you will have to involve other people in the process. People love to be
asked what they think. If they believe you will seriously consider their contributions, they will
offer you all kinds of useful information. Each person that you involve in your needs analysis
becomes a partner in shaping the solution. Keep them all implementing the solution.
Considering which individual in you organization is critical to the success of your needs analysis -
& then enlists their help. For example, it could be good strategy to involve your boss & others in
management who will ultimately be asked to approve your training approach. You should involve
those who will be recipients of the training. Ask for their opinions, & keep them informed about
your activities. In this way they will understand what you are trying achieve & why.

CONSIDER THE LARGER PICTURE

Since your group is not working in a vacuum, you should consider how your training challenge is
affecting other groups in the organization. For example, if you are creating a product that is passed
to another by changes in your method that might come about when you implement your solution?
How do the see your training issue? In fact, you might ask yourself if, in defining your issue, you
have looked beyond your own needs. Over looking others needs might doom your solution.
Expanding the boundaries of your needs analysis to include those outside your group is one
strategy for seeing the larger picture.

SERVE THE CUSTOMER

In the heat of meeting everyone elses needs, dont forget your customers. Your ultimate training
solution should benefit them as well. In thinking of your customers needs, remember that you
have two different types of customer;
External customer who pay hard cash for the product or services of your organization,
Internal customers, who work within your organization receive product from you, & add
their value to it before it reaches the external customers.
Ask yourself how actions fit into the chain of serving your customers.

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 Needs Assessment Process
ASSESSING YOUR CURRENT SITUATION

In a needs analysis, assessing your current situation provides a clear definition of the problem. All
off your other actions in the need analysis depend on your making this assessment accurately. It is
very important first step. To get a complete picture of your current situation, you can ask yourself
these 3 questions:
Where are we now?
Why do we think we need training?
What organization issues are driving the need for training?

WHERE ARE WE NOW?

Begin your needs analysis by exploring the current situation. Start by noting what you already
know about your situation. Consider asking others in the group to define the current situation as
they see it. Involving other right the start is a good way to begin establishing a partnership for the
whole process. The emphasis in defining your current situation is on capturing a description of
where you are right now. As you do this, however, you may begin to potential solutions to your
situation or you gather and analyze information.

WHY DO WE THINK WE NEED TRAINING?

The obvious answer to this is, We need training to address the situation. But ask yourself, Why
now? Think about what is going on in your department right now. Ts there is a history behind this
situation? What is the issue, problem, or situation that is creating the need or demand for this
training? Perhaps your department is responding to pressure from upper management to improve
cycle-time or quality, or perhaps, outside competition is driving the need. Whatever the reason, it is
an important part of your assessment of the current situation.

WHAT ORGANIZATION ISSUES ARE DRIVING THE NEED FOR

TRAINING?
This question draws you into the larger picture that should be a part of your overall strategy. If you
know the mission, vision, & business objectives of your organization, you should be able to

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determine what is going on in your organization that is driving the need for training. Again, other
can help you with this process. Your direct management can provide insights into the importance
of your task. Dont hesitate to probe for this type of information. Others may also provide useful
information about events that are not currently driving the training need but which might have an
impact on your situation, such as expected mergers or personnel changes.

ENVISIONING YOUR FUTURE

Envisioning your future is defining & understanding what your group will look like after the
training has been accomplished. When you think about how the future would look if your training
efforts were successful, you often discover aspect of your vision that have nothing to do with
training but are critical to the success of your efforts. It is important to uncover these elements
early in the needs analysis so that they can be full address as well. To create your vision, ask
yourself these 3 questions:
Where do we want to be?
What would success look like?
Do we have the whole picture?

WHERE DO WE WANT TO BE?

Imagination is a powerful tool for changing the world. All great inventors & leaders call on their
imaginations to see what has never been & to inspire commitment & progress. They often dont
know how they are going to get to the future, but they already have a clear picture of what it will
look like. Your own organizations vision is an example of dreaming the future. The business
objectives are the steps to get there. You use the same process in your needs analysis. You define
the future & then you identify the action steps to get you there. Use your imagination to see your
group as it would be if the issues of the current situation where successfully addressed.

WHAT WOULD SUCCESS LOOK LIKE?

An excellent way to measure the future is to determine if there are any quantifiable numbers that
would indicate success. In a production area, for instance, successful training might result in, say, a
20 percentage increase in productivity or a specific reduction in defects per one hundred thousand

59
units manufactured. If numbers or measures are important to your success, include them in your
description of the future.
DO WE HAVE THE WHOLE PICTURE?
When we dream of future, we tend to dream of fulfillment of our own needs; but in an
organization, we not alone. Your vision of the future must consider the needs of others. Think
about how would interact with others outside your group in your future state. How would your
solution benefit the organization as whole? Enlarging the picture also reveals key players outside
your group whose involvement may be essential to the success of your needs analysis. You may
discover areas of support you can tap to strengthen your results. By identifying others who have a
stake in the success of your project, you expand your resources & increase your chance of success.

GATHERING INFORMATION

The first two actions of your needs analysis:

Assessing the current situation
Envisioning the future
Helped you to establish a good stance for identifying & targeting your training needs. With one
foot planted in the present & one foot pointed towards the future, you are in a good position to take
steady aim at the target.
But before you shoot, you have to know where you are aiming. The next three steps in the needs
analysis process:
Gathering information,
Sorting your information, and
Sharing your results
Help you define what you are aiming at. In the information gathering step, you are collecting
information to better understand what needs to be done to reach your future state. You are
investigating to discover:
The need & perception of others
What barriers must be overcome
Your groups current skill, knowledge,& attitudes
What skills, knowledge, & attitude are needed for the future

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 What needs to be done & how to do it
The information gathering step is an opportunity for you to collect raw data from whatever source
you feel would be helpful. Three concern of gathering information are:
Whom to ask
What to ask
How to ask
WHOM TO ASK?
There are two aspect of this issue. You must decide:
Whom will you select to answer your question?
Who will do the asking?
Whom will you select to answer the question?
In selecting individual or groups to provide information, ask yourself these questions:
Who knows the most about the situation?
Who wants to be involved?
Who would have a different perspective?
Who could be to the success of the project?
Who might good ideas to share?
Who can provide objective information?
If possible, seek suggestion about potential contributors of information from those you have
already involved in your project. Try to maintain a balance of participants. The list should be
representative of those affected by out come. If possible, include employees, management, & both
internal external customers. One way to ensure a balance is to make a chart of the areas you want
to include & the job levels to consider & then fill in the names of possible contributors using the
questions to guide you.
Once the chart is complete, you can select individuals or groups from each area & job level to
create a representative sample. Make sure you end up true cross section. You should also check for
balance between long term & short term employees, or whatever categories are important for a fair
selection process in your organization.

Who will do the asking?

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Selecting information gathers is another opportunity to involve others in your project. Key players
might welcome the chance to participate in interviews, focus groups, & surveys as information
gatherers. Consider the following questions when selecting information gatherers:
Who can remain objective?
Who wants be an information gatherer?
Who can take the time to do it?
Whose involvement would increase the chances of success?
Who has strong communication and interpersonal skills?
Who has experience in facilitating groups?

WHAT TO ASK?
Explain to the participants the purpose of the needs analysis & share with them the desired future
state. One should no be surprised if the respondent want to add details to the future state
description. Determine the right approach in involving the process in a needs analysis, and
information comes to you at every step of the way. If the information is valuable, incorporate it, &
keep moving forward.
Be sure to stress the importance of individual contribution to the success of needs analysis. The
more open & welcoming you are to comments, the more information you will get to direct your
aim. Here are few suggestions to get you started:
How do you see the situation
What concerns do you have about the improving situation
What do you think needs to be done?
What training is needed/
Specifically, how would that training help?
Is there any one else you think we should talk to?
Tips for writing effective questions
Effective question save your work. Take time to structure them so that they elicit the best
information for your needs.
Use clear, simple language.
Include only one idea per question.

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 Use a logical sequence
Consider the respondent
Always leave for comments.
Choose appropriate question formats, for example open ended questions, multiple choice,
rating scale, intensity scale, rank order.
HOW TO ASK?
There are endless ways to gather information, but for the purpose of needs analysis, there are 5
frequently used methods you should consider. Listed as;
Interviews
Focus groups
Surveys/questionnaires
Document analysis
Observation
Which method is best?
The method that gets you the information you need & is comfortable for you & fro those you
will be working with the best method to use. You decide. Use one method or a combination of
methods to best meet your needs. In many cases, a variety is best. For example, you might
interviews for management, surveys & questionnaires with employees & focus groups with
customers all in the same needs analysis. It really doesnt matter how many methods you
employ; the important thing is to get the information you needing a timely & considerate
manner.
Which ever methods you use, you have a responsibility to tell the respondent how the
information will be used & what information can remain confidential. If confidentiality is an
issue for some respondents, you must respect that.

How will you gather & record data?

There is one aspect of information gathering you should nail down before you begin. Make
sure you develop a systematic approach to gather & record the data; that is find a way to
standardize the way information is captured. A computer program is ideal when you have
personnel to input responses; but even if your budget wont permit this, make sure your

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 information-gathering tool is organized. Use charts or questionnaires with space to write so that
you can easily extract the information when you begin to analyze the results.

SORTING YOUR INFORMATION

After gathering information you have to interpret the information to find out what it really tells you
about your current situation and the challenges you face in moving to your future state. When you
finish this step, you should have a document identifying the major training issues to be address and
your recommendations for addressing them. If you used a computerized information-gathering
method, you can review the information quickly by providing it in form you want. If you dont
have computer to assist you, you will have to organize and sort the material yourself. Consider
using a small team to independently review the information and identify issues. You can then meet
and pool your findings. A team gives you a more objective analysis.

IDENTIFYING THE ISSUES

Sorting the information into categories helps you manage it and identify themes & issues that must
be addressed to reach your vision of the future. When you sort your information into categories,
you are looking for consistencies & connections between individual pieces of information. It may
help you if you read through all your information once; then as you begin to see comments
repeated you can jot down some possible categories to put them in some people like to highlight
comments in different colors, with each color representing a different category. Then they can pick
out all the yellow comments, for instance, group them together, & analyze their significance.

PRIORITIZING THE ISSUES

Once you have organized the information into categories and looked at a significance of each
contribution, you can begin to prioritize the issues. How you prioritize them depends on your
specific situation. You might want to start with a category with the most comments, or you might
to start with positive categories & then list the negative ones. Depending on your situation, it might
be best to address the organization themes first & the team themes or individual needs. If you are
analyzing numbers, you might prioritize the results by looking at the highest rated item or the most
frequent response.

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PREPARING THE INFORMATION TO SHARE WITH OTHERS
You have sifted through the information, identified major categories, and considered your
recommendations for moving ahead. Before you actually call a meeting or write a report to present
your findings, you should spend more time preparing your presentation. Your goal in presenting
the information it to have it acted upon, and a little preparation ahead of time will help you more
easily achieve that goal.
As you think about developing your presentation, consider these 2 major design elements:
Strategy
Structure

Strategy
You have been strategy throughout your needs analysis to involve others, consider the larger
picture, and serve the customer. You can continue to do this here by inviting the key players to
your feedback meeting & making sure the issues address both the larger picture and your
internal and external customers needs.
Another good strategy is to include positive statements about the current situation at the
beginning of the presentation. People generally do the best they can, and you need to
acknowledge that before you make recommendations to change the way things are done. You
may also have among your key players a few people who constructed the method you now
need to change.

Structure
The order in which you present your material and the topic you choose to present are also
important to your success. Plan to explain your method for doing the needs analysis. This can
be very brief if those present have been involved in the process from the beginning. If the
issues one intends to present are complex, consider developing an example to use with them to
help clarify the information. An important part of your presentation will be your
recommendations. Keep them as open as possible, allowing for contribution from those present
at the meeting. Vital information can come out in the feedback meeting.

65
SHARING YOUR RESULTS

When you share your results with others, your goal is to present the information in a way that will
move you forward. Your assessment should be positive and encouraging. Offer hope for action to
address needs, and be prepared with recommendations to share as well. There are 2 things to
consider when you share results with others:
What to share
How to share
WHAT TO SHARE
There are six steps in sharing your results with others:
Describe your needs analysis method
Present your information
Identify issues
Listen and absorb reaction
Discuss the reaction
Present recommendations

Describe your needs analysis method

If you have been working with a small group, your method may already be familiar to all those
involved. If this is the case, you can skip this step or discuss your method very briefly. If,
however youre sharing results with individual who are not familiar with your method, review
the needs analysis process you are using. Give a short for the need of the project and how you
got to this point. This is also a good time to thank them for their contribution to the project and
for ongoing support.

Present your information

Participants will be more attentive to your conclusions if they understand how you develop
them. By discussing some of the raw information you received, you involve the group and gain
their understanding and support.

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Identify the issues
This is where you present your analysis of raw information and identify the key issues to be
addressed. You can add your own insights and observation to this material if you think it will
help, but avoid making recommendations at this point. People need time to absorb the analysis
before they are ready to consider ways to address the issues.

Listen to and absorb the reaction

This is probably the hardest part of sharing the results. You have done all this research, you
have crafted an analysis of the key issues, and now you have to wait for and manage the
reaction.

Discuss the reaction

If the silence becomes oppressive, you can encourage a response by selecting in topic and
probing for more information about it. For example, if your investigation showed that
employees need clearer communication for management, ask one of your management key
players what information is currently communicated. The purpose of asking is to star a
discussion of idea for improving the content of information to employees. Takes notes, by
incorporating or crediting these ideas as you present your recommendations later, you enlarge
your list of supporters.

Present recommendations
Presenting your recommendation is less distinct step and more a continuation of discussion of
ideas. You can guide the process or summarize an idea by supplying your recommendation as
they become relevant to discussion. You can also present your recommendations as a way to
focus the discussion of it begins to drift or unravel.

HOW TO SHARE
What to share is a challenging part; but how to share is also important. Remember to be
positive and encouraging. Use every opportunity to draw support from the group and credit
their contributions. Consider using visuals and charts to support your information. It gives

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 those present another way to interpret what you are saying. Examples and metaphors can also
help your audience understand the material.

DECIDING YOUR NEXT STEP

The last action in the needs analysis process is to translate the recommendations into plan of
action. You are creating a list of activities that will be used in the next step of the training process.
You are not actually doing the design of training in this last action. You are simply creating a
description of specific training required to improve the situation. You also assigning responsibility
for doing activities to specific individuals and establishing a due date for completion. This action
ensures that the work done to date is not wasted and that the project continues to move forward.
There are three key elements to a successful action plan:
Determining the action needed
Distributing responsibilities
Establishing a time line

DETERMINING THE ACTIONS NEEDED

The recommendations are your starting point for developing the action needed. If they are not
currently worded as actions, rewrite them so they are. Be sure that everyone understand what is to
be accomplished by each action and that every one is in agreement.

DISTRIBUTING THE RESPONSIBILITIES

Each action in your plan should be assigned to a specific person. It would be even better if you had
volunteers. Even if a team will be performing the task, record the name of the person on the team
as the contact and the person responsible for the teams activities.

ESTABLISHING A TIMELINE
For each action item, establish a due date for completion of the task. A due date gives participants
a target and helps them focus their activities towards results.
SOLUTION

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This is the satisfaction point. After reaching here we shouldnt stop our work. But we should try
to make training a regular activity in the organization.

INDUSTRY PROFILE
Banking in India has its origin as early as the Vedic period. It is believed that the transition from
money lending to banking must have occurred even before. Manu, the great Hindu jurist who has
devoted a section of his work to deposits and advances and laid down rules relating to rates of
interest.

During the mogul period, the indigenous bankers played a very important role in east India
Company; it was the turn of the agency houses to carry on the banking business. The general bank
of India was the 1st joint stock bank to be established in the year 1786. The others that followed
were the Bank of Hindustan and the Bengal Bank failed in the meantime.
In the 1st half of 19th century the East India Company established 3 banks:
The Bank of Bengal in 1809.
The Bank of Bombay in 1840 and
The Bank of Madras in 1843.
These 3 banks also known as Presidency Banks were independent units and functioned as well.
These 3 banks were amalgamated in 1920 and a new bank, the Imperial Bank of India was
established on 27th Jan 1921. With the passing SBI act in 1955, the undertaking of the Imperial
Bank of India was taken over by the newly constituted State Bank of India.

The RBI which is the central bank of India was created in 1935, by passing RBI act 1934. In the
wake of the swadeshi movement, a no. of banks with Indian management were established in the

69
country namely, Punjab National Bank ltd., Bank of India ltd., Canara Bank Ltd., Indian Bank
Ltd., the Bank of Baroda Ltd., the Central Bank of India Ltd.On July 19, 1969, 14 major banks of
the country were nationalised and on 15th April 1980, 6 more commercial private banks were also
taken over by the Government.

Today, the commercial banking system in India may be distinguished into:

1. public sector banks

o SBI and its associate banks called the State Bank group.

o 20 nationalised banks.

o Regional rural banks mainly sponsored by public sector banks.

2. private sector banks

o Old generation private banks.

o New generation private banks.

o Foreign banks in India.

o Scheduled co operative banks.

o Non-scheduled banks.

Banking Scenario in India

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A strong and vibrant banking sector with a network of over 54,500 branches supports Indian
economy. Besides, a no. of national and state level financial institutions, a large no. of domestic
and foreign institutional investors, investment funds, equipment leasing companies and venture
capitalists add vigour to Indian banking arena.
In the recent years, Indian banking system is undergoing an existential crisis. In the pre-
privatization period, were never ensconced in the financial sector. Then came the banking
regulation act of 1993, which opened the floodgates for foreign banks. Foreign banks are in the
fray, forcing their Indian counterparts to adopt a customer centric approach.

Merger of banks is also a recent phenomenon. Some of them are Times Bank with HDFC Bank,
Bank of Madura with ICICI Bank and the recent Global Trust Bank with Oriental Bank of
Commerce.

IT in Banking

Indian banking industry, today is in the midst of an IT revolution. A combination of regulatory and
competitive reasons has lead to increasingly importance of total banking automation in the Indian
banking industry.
Competition, growing expectations of customers and increased awareness among customers has
led to the IT aspect in banking.

Evolution of State Bank of India

The origin of the State Bank of India goes back to the first decade of the nineteenth century with
the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank
received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the

71
Bank of Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result
of the compulsions of imperial finance or by the felt needs of local European commerce and were
not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution
was, however, shaped by ideas culled from similar developments in Europe and England, and was
influenced by changes occurring in the structure of both the local trading environment and those in
the relations of the Indian economy to the economy of Europe and the global economic
framework.

Bank of Bengal H.O.

Establishment

The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking
in India. So was the associated innovation in banking, viz. the decision to allow the Bank of
Bengal to issue notes, which would be accepted for payment of public revenues within a restricted
geographical area. This right of note issue was very valuable not only for the Bank of Bengal but
also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the
banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit
banking was also an innovation because the practice of accepting money for safekeeping (and in
some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as
a general habit in most parts of India. But, for a long time, and especially upto the time that the
three presidency banks had a right of note issue, bank notes and government balances made up the
bulk of the investible resources of the banks.

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The three banks were governed by royal charters, which were revised from time to time. Each
charter provided for a share capital, four-fifth of which were privately subscribed and the rest
owned by the provincial government. The members of the
board of directors, which managed the affairs of each bank, were mostly proprietary directors
representing the large European managing agency houses in India. The rest were government
nominees, invariably civil servants, one of whom was elected as the president of the board.

Group Photograph of Central Board (1921)

Business:

The business of the banks was initially confined to discounting of bills of exchange or other
negotiable private securities, keeping cash accounts and receiving deposits and issuing and
circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation
confined to three months only. The security for such loans was public securities, commonly called
Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no
interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo,
salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but such
finance by way of cash credits gained momentum only from the third decade of the nineteenth
century. All commodities, including tea, sugar and jute, which began to be financed later, were
either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower
in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the

73
banks or on the mortgage of houses, land or other real property was, however, forbidden.

Indians were the principal borrowers against deposit of Company's paper, while the business of
discounts on private as well as salary bills was almost the exclusive monopoly of individuals
Europeans and their partnership firms. But the main function of the three banks, as far as the
government was concerned, was to help the latter raise loans from time to time and also provide a
degree of stability to the prices of government securities.

Old Bank of Bengal

Major change in the conditions

A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras
occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note issue of
the presidency banks was abolished and the Government of India assumed from 1 March 1862 the
sole power of issuing paper currency within British India. The task of management and circulation
of the new currency notes was conferred on the presidency banks and the Government undertook
to transfer the Treasury balances to the banks at places where the banks would open branches.
None of the three banks had till then any branches (except the sole attempt and that too a short-
lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had given them such
authority. But as soon as the three presidency bands were assured of the free use of government
Treasury balances at places where they would open branches, they embarked on branch expansion
at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency banks

74
covered most of the major parts and many of the inland trade centres in India. While the Bank of
Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the
Banks of Bombay and Madras had fifteen each.

Bank of Madras Note Dated 1861 for Rs.10

Presidency Banks Act

The presidency Banks Act, which came into operation on 1 May 1876, brought the three
presidency banks under a common statute with similar restrictions on business. The proprietary
connection of the Government was, however, terminated, though the banks continued to hold
charge of the public debt offices in the three presidency towns, and the custody of a part of the
government balances. The Act also stipulated the creation of Reserve Treasuries at Calcutta,
Bombay and Madras into which sums above the specified minimum balances promised to the
presidency banks at only their head offices were to be lodged. The Government could lend to the
presidency banks from such Reserve Treasuries but the latter could look upon them more as a
favor than as a right.

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 Bank of Madras

The decision of the Government to keep the surplus balances in Reserve Treasuries outside the
normal control of the presidency banks and the connected decision not to guarantee minimum
government balances at new places where branches were to be opened effectively checked the
growth of new branches after 1876. The pace of expansion witnessed in the previous decade fell
sharply although, in the case of the Bank of Madras, it continued on a modest scale as the profits of
that bank were mainly derived from trade dispersed among a number of port towns and inland
centres of the presidency.

India witnessed rapid commercialization in the last quarter of the nineteenth century as its railway
network expanded to cover all the major regions of the country. New irrigation networks in
Madras, Punjab and Sind accelerated the process of conversion of subsistence crops into cash
crops, a portion of which found its way into the foreign markets. Tea and coffee plantations
transformed large areas of the eastern Terais, the hills of Assam and the Nilgiris into regions of
estate agriculture par excellence. All these resulted in the expansion of India's international trade
more than six-fold. The three presidency banks were both beneficiaries and promoters of this
commercialization process as they became involved in the financing of practically every trading,
manufacturing and mining activity in the sub-continent. While the Banks of Bengal and Bombay
were engaged in the financing of large modern manufacturing industries, the Bank of Madras went
into the financing of large modern manufacturing industries, the Bank of Madras went into the
financing of small-scale industries in a way which had no parallel elsewhere. But the three banks
were rigorously excluded from any business involving foreign exchange. Not only was such

76
business considered risky for these banks, which held government deposits, it was also feared that
these banks enjoying government patronage would offer unfair competition to the exchange banks
which had by then arrived in India. This exclusion continued till the creation of the Reserve Bank
of India in 1935.

Bank of Bombay

Presidency Banks of Bengal

The presidency Banks of Bengal, Bombay and Madras with their 70 branches were merged in 1921
to form the Imperial Bank of India. The triad had been transformed into a monolith and a giant
among Indian commercial banks had emerged. The new bank took on the triple role of a
commercial bank, a banker's bank and a banker to the government.

But this creation was preceded by years of deliberations on the need for a 'State Bank of India'.
What eventually emerged was a 'half-way house' combining the functions of a commercial bank
and a quasi-central bank.

The establishment of the Reserve Bank of India as the central bank of the country in 1935 ended
the quasi-central banking role of the Imperial Bank. The latter ceased to be bankers to the
Government of India and instead became agent of the Reserve Bank for the transaction of
government business at centers at which the central bank was not established. But it continued to

77
maintain currency chests and small coin depots and operate the remittance facilities scheme for
other banks and the public on terms stipulated by the Reserve Bank. It also acted as a bankers'
bank by holding their surplus cash and granting them advances against authorized securities. The
management of the bank clearing houses also continued with it at many places where the Reserve
Bank did not have offices. The bank was also the biggest tender at the Treasury bill auctions
conducted by the Reserve Bank on behalf of the Government.

The establishment of the Reserve Bank simultaneously saw important amendments being made to
the constitution of the Imperial Bank converting it into a purely commercial bank. The earlier
restrictions on its business were removed and the bank was permitted to undertake foreign
exchange business and executor and trustee business for the first time.

Imperial Bank

The Imperial Bank during the three and a half decades of its existence recorded an impressive
growth in terms of offices, reserves, deposits, investments and advances,

the increases in some cases amounting to more than six-fold. The financial status and security
inherited from its forerunners no doubt provided a firm and durable platform. But the lofty
traditions of banking which the Imperial Bank consistently maintained and the high standard of
integrity it observed in its operations inspired confidence in its depositors that no other bank in
India could perhaps then equal. All these enabled the Imperial Bank to acquire a pre-eminent
position in the Indian banking industry and also secure a vital place in the country's economic life.

78
 Stamp of Imperial Bank of India

When India attained freedom, the Imperial Bank had a capital base (including reserves) of
Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores respectively and a
network of 172 branches and more than 200 sub offices extending all over the country.

First Five Year Plan

In 1951, when the First Five Year Plan was launched, the development of rural India was given the
highest priority. The commercial banks of the country including the Imperial Bank of India had till
then confined their operations to the urban sector and were not equipped to respond to the
emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the
economy in general and the rural sector in particular, the All India Rural Credit Survey Committee
recommended the creation of a state-partnered and state-sponsored bank by taking over the
Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An
act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted
on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed
under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was
passed in 1959, enabling the State Bank of India to take over eight former State-associated banks
as its subsidiaries (later named Associates)

79
At present the 7 associate banks are:

1. State Bank of Bikaner and Jaipur

2. State Bank of Hyderabad.

3. State Bank of Indore.

4. State Bank of Mysore.

5. State Bank of Patiala.

6. State Bank of Saurashtra.

7. State Bank of Travancore.

The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices
comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank.
The concept of banking as mere repositories of the community's savings and lenders to
creditworthy parties was soon to give way to the concept of purposeful banking sub serving the
growing and diversified financial needs of planned economic development. The State Bank of
India was destined to act as the pacesetter in this respect and lead the Indian banking system into
the exciting field of national development.

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 Mission Statement

To retain the banks position as the premier Indian Financial Services Group, with world class
standards and significant global business committed to excellence in customer, shareholder and
employee satisfaction and to play a leading role in the expanding and diversifying financial
services sector while continuing emphasis on its development banking role.

Vision Statement (Qualitative)

Premier Indian Financial Services Group with global perspective, world class standards of
efficiency and professionalism and core institutional values.

Retain its position in the country as a pioneer in development banking;

Maximise shareholder value through high sustained earnings per share

An institution with a culture of mutual care and commitment, a satisfying and exciting work
environment and continuous learning opportunities.

Values

Excellence in customer service

Profit orientation

Belonging and commitment to the bank.

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 Fairness in all dealings and relations.

Risk-taking and innovation.

Team-playing.

Learning and renewal.

Integrity.

Transparency and discipline in policies and systems.

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 ORGANISATION STRUCTURE

The structure of the corporate center and the business groups located at Mumbai is as follows:

Chairman

CORPORATE
CENTER DMD & CFO
DMD & CCO

DMD (I & MA)

DMD & CDO

CVO
DMD (IT)

BUSINESS MD & GE MD & GE DMD & GE DMD & GE

GROUPS (CB) (NB) (IB) (A&S)

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The structure of Local Head Office (LHO) is as follows:

Chief General Manager

DGM DGM (Vigilance)

Circle Financial Officer

DGM DGM (Law)

Circle Credit Officer
AGM (Public relations
and community services
DGM banking)
Circle Development Officer

General Manager General Manager

(Commercial Banking) (Development & Personal Banking)

Deputy General Manager (Module)

84
 SMGS IV- Manager MIS (Direct Branches)
Gen. Banking/Bud & Per.Mon.Etc.

SMGS IV- Personnel & HRD SMGS IV

Advances, Rehab.Cum NPA Mgt.Cell

MMGS III Official Languages

MMGS III MMGS III NPA
Adv. Cell MGA/REC.CELL

MMGS III Disc.Pro.Cell

Chief Manager
Lead Bank Cell (in a few nodules)

MMGS II Security Officer

Office
MMGS III- Zonal
CM Banking
Operations Computer Centre
MMGS III interoffice
JMGS I Asst. Manager (Law) reconciliation-
Government accounts
department.
SMGS IV Office Administration

JMGS Medical MMGS II

Officer Premises

All branches headed by AGMs

AGMs (Region)

Head, Mortgage Sales

Retail Asset CPC

Credit Processing Cell (Temporary) SE Credit Cell

Structure of Zonal Office

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 FINANCIAL VIEW

The Bank posted a net profit of Rs 1222.83 cr for Q1 of 2005-06, recording a growth of 15.54%
compared to Rs. 1058.40 cr in Q1 of 2004-05.

Operating profit for the quarter stood at Rs.3439.48 cr. as against Rs. 2071.40 cr in Q1 of 2004-05
a growth of 66.05%. Operating Profit excl. profit on sale of investment, Dividend and one time
item increased by 44.07%. Increase in net interest income coupled with marginal decline in
Operating Expenses led to higher Operating Profit.

Products and services

Being the largest bank in India, SBI aims at attracting customers from all sectors of the society. In
order to facilitate this, the bank has set up various strategic business units called SBUs to cater to
different needs.
Some of them are as follows:

Strategic business units (SBUs)

1. Corporate Banking Group.

2. National banking group
3. International banking
4. Associates and subsidiaries
5. Project finance.

National banking is further divided into:

1. personal banking
2. agricultural Banking

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 3. small and medium enterprises
4. development banking

Personal banking

State Bank of India offers a wide range of services in the Personal Banking Segment.

Some of them are as follows:

SBI Term Deposits

Savings Bank
SBI Recurring Deposits
Loan against Mortgage of property
SBI Loan for Pensioners
SBI Housing Loan
Loan against Shares & Debentures
SBI Car Loan Rent plus Scheme
SBI Educational Loan Medi-Plus Scheme
SBI Personal Loan Rates of Interest

A no. of personal banking branches are opened throughout, equipped with customer friendly
knowledgeable staff to cater to an individuals financial requirements State Bank of India offers a
wide range of services in the Personal Banking Segment. Heres a brief look at one of the Personal
Banking Product:

SBI HOUSING LOANS:

Home is where the heart is!

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The Housing loan schemes are designed to make it simple to make a choice at least as far as
financing goes.

Some of the advantages are:

Excellent service and lower costs.

Low Equated Monthly Instalments (EMI)
Low interest rates, currently between 8% p.a. and 9.25% p.a. on daily reducing balances
No hidden costs or administrative costs
No prepayment penalties.

The loan could be taken for:

Purchase or construction of a new house/ flat.

Purchase an existing (old) house/ flat.
Extend, repair, renovate or alter a house/ flat.
Purchase a plot of land meant for construction of a dwelling unit.

Eligibility

Anyone who is over 21 years of age and has a steady source of income is eligible.

Loan Amount

The actual loan amount is determined on the basis of repayment capacity taking into account the
income, age, assets and liabilities. As a rule of thumb - Upto 60 times the net monthly income will
be sanctioned depending upon the age. Usually, spouse's income and the expected rental would
also be taken into account.

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Repayment

The repayment terms are amongst the most flexible in the market. Depending on the age and
capacity to repay, the loan could be paid back the loan in easy instalments spread over 20 years.
Agricultural Banking:

State Bank of India Caters to the needs of agriculturists and landless agricultural labourers
through a network of 6600 rural and semi-urban branches. There are 972 specialized branches
which have been set up in different parts of the country exclusively for the development of
agriculture through credit deployment. These branches include 427 Agricultural Development
Branches (ADBs) and 547 branches with Development Banking Department (DBDs) which cater
to agriculturists and 2 Agricultural Business Branches at Chennai and Hyderabad catering to the
needs of hi-tech commercial agricultural projects.

The branches have covered a whole gamut of agricultural activities like crop production ,
horticulture , plantation crops, farm mechanization, land development and reclamation, digging of
wells, tube wells and irrigation projects, forestry, construction of cold storages and godowns,
processing of agri-products, finance to agri-input dealers, allied activities like dairy , fisheries,
poultry, sheep-goat, piggery and rearing of silk worms.

SBI is the leader in agriculture finance in the country with a portfolio of Rs. 18,000

Corporate Banking

SBI provides financial products and services of wide range for large, medium and small customers
both domestic and international. The corporate banking unit is a step towards providing services to
corporates.

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Some of its products are:

Working capital financing

It is extended both as fund based and non-fund based facilities to corporates, partnership firms, and
proprietary concerns.
It also extends working capital finance to all segments of industries and services sector such as IT.

Term Loans

The bank provides term loans to support capital expenditures for setting up new ventures and also
for expansion, renovation etc.

Deferred Payment Guarantees

This is given to provide support purchase of capital equipments.

Corporate loans.

This is provided to corporates for a variety of business related corporates.

Some of the loans are

Project finance and Lease Finance, which is a dedicated set up specialised in financing of
infrastructure and other large projects

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Project Export Finance

State Bank of India is an active participant in the area of finance of Project export activities.
These activities will mainly involve financing the fund based and non fund based requirements of
the project exporters.

Export of engineering goods on deferred payment terms

Execution of turnkey projects abroad
Execution of overseas civil construction contracts abroad
Exports of services are the contracts for export of consultancy, technical and other services.

Project export contracts are generally of high value and exporters undertaking them are required to
offer competitive terms to be able to secure orders from foreign buyers in the face of stiff
international competition.

Various types of credit facilities, both non fund and fund based, that the project exporters may need
at the time of bidding and/ or for execution of the project are extended by the Bank.

Non Fund Based Facilities

Letter of Credit facility on behalf of the customer enabling him to import raw material required
for manufacturing goods for project export is provided by the bank and also all other types of
guarantees required for project export contract are issued by the bank:

Bid Bond Guarantee.

Advance Payment Guarantee
Performance Guarantee Down
Payment Guarantee
Retention Money Guarantee
Maintenance Guarantee & Overseas Borrowing Guarantee

The fund based facilities are:

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 Pre-shipment credit

Rupee/ Foreign currency supplier's credit

Buyers credit

Merchant banking:

SBIs Merchant Banking Group is strongly positioned to offer perfect financial solutions to your
business. We specialize in the arrangement of various forms of Foreign Currency Credits for
Corporates.

It provides resources, convenience and services to meet customers needs by arranging Foreign
Currency credits through:

Commercial loans
Syndicated loans
Lines of Credit from Foreign Banks and Financial Institutions
FCNRB loans
Loans from Export Credit Agencies
Financing of Imports.

International Banking:

International banking services of State Bank of India are delivered for the benefit of its Indian
customers, non-resident Indians, foreign entities and banks through a network of 52
offices/branches in 31 countries, spread over all time zones. The network is augmented by a cluster
of Overseas and NRI branches within India and correspondent links with over 700 banks, the
world over. Bank's Joint Ventures and Subsidiaries abroad further underline the Bank's
international presence.

The Bank has carved a niche for itself in the Euro land with branches located in Antwerp, Paris and

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Frankfurt. Indian banks and corporates are able to avail single-window Euro services from the
Bank's Frankfurt branch.

Some of the other services of the State Bank of India are:

SBI Life - Insurance

SBI Cards - Credit and Debit cards

SBI Mutual Funds

Some of the Internet Banking services include:

Self-account funds transfer across India.

Third party transfers in the same branch

New account opening

Demand Draft requests

Standing instructions

New Cheque-book request and much more.

Apart from these, the other salient value-added features available are:

Railway tickets booking,

Utility bill payments

LIC and other insurance premium payments,

SBI Mutual funds Investments

Remit Subscription to PPF account,

Credit card dues payments,

Deposit your taxes,

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 Donations to your religious inspirations

Donations to Red Cross and such other organisations

Setting up SMS alerts for transaction information.

SWOT ANALYSIS

STRENGTH:

Many new generation banks both private and foreign have entered the banking industry and these
banks offer new products at competitive rates.
In this scenario, the bank has defined its competitive advantage as:

Vast branch network spread all over the country.

Advancement in technology upgradation.
Low NPA ratio
SBI & Associates is the largest bank in India
Branch network has also spread overseas.
Well trained personnel to handle specialised products.
Provides innovative products and services.

WEAKNESS:

High cost of funds.

Insufficient banking hours.
Inability to make good use of advertising to attract customers.
Old fashioned ambience.
Some of the branches not being fully computerised.
Non availability of a centralised customer database.

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OPPORTUNITY:

In the banking sector, technology is finding its application in product delivery/access, productivity,
performance, product design and above all adapting to market and customer needs.
This can significantly add to the competitive advantage and promote the services to clients.

THREAT:

Size has become an important issue in Indian banking parlance. There are bound to be mega
mergers and acquisitions.
Increasing pressure on asset quality, decreasing margins and competition.
Banks, especially PSBs are at the receiving end of certain developments including policy
changes, for instance the ongoing clamour to lower the interest rates.
Stiff competition from other industrial rivals.

Training and awareness among employees: It is recommended that State Bank of India should
conduct various training programmes for the employees, so that they will get aware with the
terms of internet banking. After such programmes they can create awareness amongst the
consumers

Exchange of information on threats and vulnerabilities at appropriate forms: There should be an

open end discussion on the threats and vulnerabilities coming across the functioning of internet
banking work by the employees in the various official forums and meets.

Build an optimal operating model by understanding which activities to retain collaborate and
outsource:-There should be clear sight of operations which needs to outsource to other

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companies, this will lead to ease in work for employees. Outsourcing operations like, cyber
security department, building IT structure on internet.

Bank should Create and sustain customer, investor and regulator confidence by adopting
international accounting standards :Adopting international standards adds some more star to the
glory of any company, SBI should impose such standards when it comes to internet banking or
virtual banking, this will enhance the goodwill of SBI among regulator, customers and invertors.

Bank should anticipate and get prepared for regulatory changes: Laws regarding IT or cyber
laws get change as per the need. SBI should anticipate such kind of changes and get loaded with
various plans and actions.

HUMAN RESOURCES

Human resources philosophy is based on dignity of work, forecasting a culture of learning,

meritocracy sans bias of any kind & commitment to highest standards of safety at the workplace.
Modern business demand quickness of mind and action. System by them does not deliver, people
do, as do people led skills & initiatives.

We have always invested in people & believe in creating an environment where people are valued
as individuals & clear HR practices, participative management, excellent welfare activities have
made the company one of the most preferred employers in the banking industry. The role of HR in
SBI is to be a Change Agent of the organization in order to align people & possesses to the
companys strategic objectives. The banking industry not only in India but also the world over
continues to face tumultuous times, where change is the only constant. The HR focus is to make
change seamless & to ensure CHANGE, BEFORE CHANGE CHANGES YOU.

OBJECTIVES OF THE STUDY

1 To study the Training practices prevailing in SBI bank.

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2 To know the satisfactory level of the employees regarding the training and development
programs.
3 To associate employees personal factors like gender, designation and the employees attitude on
Training.
4 To study the effect of Training and Development on organizational performance.
5 To study the differences in the effectiveness of training program between commercial and private
banks.

RESEARCH METHODOLOGY AND DESIGN

Research methodology comprises a number of alternative approaches and inter-related and
frequently overlapping procedures and practices. Since there are many aspects of research
methodology, the line of action has to be chosen from a variety of alternatives the choice of
suitable method can be arrived at through the objective assessed and comparison of various
competing alternatives.
A research design is the basic plan, which guides the data collection and analyses the phases of the
research project. The research design of the present study was mainly explanatory in nature as
the main purpose of the study was to explore nature and extent of deterioration in the quality of
training and thereby to find out whether the employees were satisfied with the training of sbi.
When competitive environment highly influenced by the quality of product available in market
heavily depend upon the efficiency and effectiveness of manpower i.e. the human resource.

Primary and secondary data

To carry out the objectives, the researcher has used both primary and secondary data. The
secondary data and information have been collected from various sources like business
newspapers, journals, magazines, RBI Reports and publications etc. Primary data has been
collected through structured questionnaire from the employees of SBI.

Sample design
For the purpose of the study, the researcher selected the branches of SBI on the basis of random
and stratified technique. Random and stratified sampling is the least expensive and least time
consuming of all sampling techniques. The sampling units are accessible, easy to measure and

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cooperative. The researcher personally contacted 200 employees of SBI bank (100 each) in NCR
region. They were appraised about the purpose of the study and request was made to them to fill up
the questionnaire with correct and unbiased information.

Identification of Training Needs

Training will be imparted on the basis of:
A. Needs identified from the performance review on yearly basis at the individual
level.
B. Needs identified at the division/departmental level by the division/departmental
head on areas which are specific to his division/departmental.
C. Needs identified at functional level by functional head like Marketing/Human
Resources/Purchase/Finance.
D. Organizational level training programs such as programs on Total Quality
Management, Supervisory Development, Cost Improvement, etc.
Based on the number of people & the identified need, the programs would be held within the
organization (internal training programs) or the employees will be nominated to various institutes
of repute (external training programs).
The first step in whole of training procedure is the identification of training needs of employees.
Need assessment diagnoses present problems and future challenges to be met through training.
Organizations spend vast sum of money on training. Before committing such huge resources,
organization would do well to assess the training needs of their employees. Organization that
implements training programs without conducting needs assessment may be making errors. For
example, a need assessment exercise might reveal that less costly interventions (e.g. selection,
compensation package, and job redesign) could be used instead of training.

As identification of training needs is important, we followed step by step procedure:

1. Creating database: We were required to identify training needs of employees from L-06 to
L-12 i.e. employees from middle level and managerial level. So, we prepared database of these
employees. Database included employees name, token no., designation, total experience etc.

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2. Preparing Questionnaire: We then prepared questionnaire that contained questions related
to survey. A specimen of the Questionnaire is showed on the annexure 1. All the personal details of
the employees mentioned in the questionnaire, were filled by us from the database already created.
3. Appraisal forms: The next step was to analyze appraisal form of each and every employee.
Appraisal forms of SBI included many details like past performance, past training identified, past
training given, goals met etc, which served as the input for our project.
4. Meeting with Head of departments: We finally interviewed Head of the Departments, who
provided us with specific training needs (behavioral & technical) as identified by them for the
employees in their departments. We also asked them to give appropriate weightage (in percentage
terms) to these identified training needs in order to categorize them in High, Middle and Low
priority.
High priority 65 to 100 %
Middle priority 30 to 65 %
Low priority 1 to 29 %
This would be a sound base while actually designing the training programmes.
5. Analysis of questionnaire: The last step was to analyze the collected data and compile it. In
order to make it more useful and easily understandable, we showed important findings with the
help of graphical representation of the compiled data. Some of the graphics of our project have
been shown after specimen questionnaire.
6. Record of Personal Attributes: Along side in order to keep a record of the strengths and
Areas of Improvements of the employees, we thus asked HODs about their comments on
employees personal attributes which became a part of our compiled data.
We were given the task to identify the behavioral training needed top the employees & hence
according to that all the above information was compiled and we finally prepared graphs (annexure
3). Consisting of the training need require by employees at different department & with their
priorities.

To make you understand the abbreviation mentioned in the graph we have also provided the list of
training needs in (annexure 2)

1. PROCEDURE FOR NOMINATION:

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The concerned HOD has to nominate in the prescribed format in line with the training needs
identified at the beginning of the year also in line with the training plan to the Human Resource
Department who will obtain the necessary approvals. Internal employee will facilitate most of
the programs. In case external faculties are approached for conducting certain sessions, prior
approval of Head-HR has to be taken for the payment of professional fees & the course
content. The concerned coordinator will also organize to collect an evaluation feedback form,
which will be handed over to the location Human Resource Department for analysis & future
reference.

2. INTERNAL TRAINING
If the number of people identified with a specific need is large, then the programs will be held
within the organization using the available resources like people with professional expertise,
in-house venues like HRD centre. The annual training plan will be drawn by Human Resource
Department based on the identified needs. This will circulate every year during the month of
July, along with all details regarding the programs.

3. EXTERNAL TRAINING
In the event of number of employees being identified with a specific area of improvement
being few, then the division/department head will communicate to Human Resource
Department the need for identifying institutes where they can be deputed. The training calendar
from various institutes will be available with the Human Resource Department, for helping
managers to take the necessary decision.

The immediate superior will initiate the nomination after discussion with the concerned
employee. The nomination form is then sent to the Human Resource Department, justifying the
needs of employee to attend the program & the action plan, which would be drawn up after the
completion of the course. Human Resource Department will process the nomination & make
necessary payments to the institutes/agencies. In case the program duration is 2 days or mare &
the course fees is more than Rs.5000/-, approval from the Jt. Managing director & CEO has to
be obtained before the nomination is processed.

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 The Human Resource Department will also ensure to get the feedback form from the employee
after his completion of the course. A half day session by the employee for a few managers to
transfer the learning should be organized by the Human Resource Department, within 15 days
of the return of the concerned manager. The employee shall submit the course material to the
Human Resource Department for the purpose of maintaining the library & if so required retain
a copy of the same.

4. TRAINING FEEDBACK
This forms an integral part of the entire training process. Evaluation/Feedback from the
training indicates appropriate changes that have to be made in the program design/content,
which will improve the effectiveness of the program.

The feedback will also consist of an action plan by the concerned employee with a specific
time frame to implement the learning to the actual performance. The feedback forms are
available with the Human Resource Departments. It is the responsibility of the head of the
department & the Human Resource Department to work together to assess the effectiveness of
the training attended by the employee. This will also help in updating the training records of
the individuals & in conducting an analysis of various training programs.

CONLUSION
All is well that ends well. The entire project proved to be of immense help in my learning process.
I came across the various practicalities existing in the Performance appraisal system.

During the study of the project I got to know various aspects of the training & development such as
how it helps to get a insight into the strong and weak areas of the employees in terms of the
effective performance of roles, activities, styles, traits, qualities, competencies (knowledge, attitude
and skills), impact on others etc. It also helps in performance management system and preparing
action plans accordingly to enhance the performance of individual or group of individuals.

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 REFERENCES

BOOKS REFERRED:

1. M.Y.Khan and P.K.Jain, Management Accounting (Third Edition), Tata McGraw Hill.
2. M.Y.Khan and P.K.Jain, Financial Management (Fourth Edition), Tata McGraw Hill.
3. D.M.Mittal, Money, Banking, International Trade and Public Finance (Eleventh Edition),
Himalaya Publishing House.

WEB SITES

1. www.sbi.co.in
2. www.icicidirect.com
3. www.rbi.org
4. www.indiainfoline.com
5. www.google.com

BANKS INTERNAL RECOREDS:

1. Annual Reports of State bank Of India (2003-2007)

2. State bank Of India Manuals
3. Circulars sent to all Branches, Regional Offices and all the Departments of Corporate
Offices.

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