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INTRODUCTION
Information technology (IT) industry in India has played a key role in putting India on the global
map. IT industry in India has been one of the most significant growth contributors for the Indian
economy. The industry has played a significant role in transforming India’s image from a slow
moving bureaucratic economy to a land of innovative entrepreneurs and a global player in
providing world class technology solutions and business services. The industry has helped India
transform from a rural and agriculture-based economy to a knowledge based economy.
The cities that account nearly 90% of this sectors exports are Bangalore, Chennai, Hyderabad,
Delhi, Mumbai and Kolkata. IT industry has registered a notable growth because of the rich and
varied expansion into verticals, well –differentiated service offerings and Increasing growth
penetration.
Information Technology has made possible information access at gigabit speeds. It has made
tremendous impact on the lives of millions of people who are poor, marginalized and living in
rural and far flung topographies. Internet has made revolutionary changes with possibilities of e-
government measures like e-health, e-education, e-agriculture, etc. Today, whether its filing
Income Tax returns or applying for passports online or railway e-ticketing, it just need few clicks
of the mouse. India’s IT potential is on a steady march towards global competitiveness,
improving defense capabilities and meeting up energy and environmental challenges amongst
others.
IT-IT’s sector in India, with the main focus on increasing technology adoption, and developing
new delivery platforms, has aggregated revenues of USD 88.1 billion in FY2011, while
generating direct employment for over 2.5 million people. Out of 88.1 billion, export revenues
(including Hardware) has reached USD 59.4 billion in FY2011 while domestic revenues
(including Hardware) of about USD 28.8 billion.
Government Initiatives:
After the economic reforms of 1991-92, major fiscal incentives provided by the Government of
India and the State Governments, like, liberalization of external trade, elimination of duties on
imports of information technology products, relaxation of controls on both inward and outward
investments and foreign exchange, setting up of Export Oriented Units (EOU), Software
Technology Parks (STP), and Special Economic Zones (SEZ), has enabled India to flourish and
acquire a dominant position in world’s IT scenario.
In order to alleviate and to promote Indian IT industry, the Government of India had set up a
National Task Force on IT and Software Development to examine the feasibility of strengthening
the industry. Venture capital has been the main source of finance for software industry around
the world. In line with the international practices, norms for the operations of venture capital
funds have also been liberalized to boost the industry.
The Government of India is also actively providing fiscal incentives and liberalizing norms for
FDI and raising capital abroad.
Financial Assistance
While the underlying theme of 2010 was that of steady recovery from recession, thanks to the
accelerated recovery in emerging markets, worldwide spending in IT products and services
increased significantly in 2011. In 2011, India’s growth has reflected new demand for IT goods
and services, with a major surge in the use of private and public cloud and mobile computing on
a variety of devices and through a range of new software applications.
High inflow of FDI in the IT sector is expected to continue in coming years. The inflow of huge
volumes of FDI in the IT industry of India has not only boosted the industry but the entire Indian
economy in recent years. Foreign direct investment (FDI) inflow rose by more than 100 per cent
to US$ 4.66 billion in May 2011, up from US$ 2.21 billion a year ago, according to the latest
data released by the Department of Industrial Policy and Promotion (DIPP). This is the highest
monthly inflow in 39 months.
Foreign technology induction is also encouraged both through FDI and through foreign
technology collaboration agreements. India welcomes investors in Information Technology
sector. Greater transparency in policies and procedures has made India an investor friendly
platform. A foreign company can hold equity in Indian company’s upto 100%.
Research & Development: To support Research & development in the country and promoting
Start ups focused on technology and innovation, a weighted deduction of 150% of expenditure
incurred on in-house R&D is introduced under the Income Tax Ac. In addition to the existing
scheme for funding various R&D projects have been funded through new scheme like Support
International Patent Protection in Electronics & IT (SIP-EIT), Multiplier Grants Scheme (MGS).
The government has initiated the setting up of an Open Technology Center through NIC aimed at
giving effective direction to the country on Open Technology in the areas of Open Source
Solutions, (OSS), Open Standard, Open Processes, Open Hardware specifications and Open
Course-ware. This initiative will act as a National Knowledge facility providing synergy to the
overall components of Open Technology globally.
Regulations
After the economic reforms of 1991-92, liberalization of external trade, elimination of duties on
imports of information technology products, relaxation of controls on both inward and outward
investments and foreign exchange and the fiscal measures taken by the Government of India and
the individual State Governments specifically for IT and ITES have been major contributory
factors for the sector to flourish in India and for the country to be able to acquire a dominant
position in offshore services in the world. The major fiscal incentives provided by the
Government of India have been for the Export Oriented Units (EOU), Software Technology
Parks (STP), and Special Economic Zones (SEZ).
Challenges
Cyber security and quality management are few key areas of concern in today’s information age.
To overcome such concerns in today’s global IT scenario, an increasing number of ITBPO
companies in India have gradually started to emphasize on quality to adopt global standards such
as ISO 9001 (for Quality Management) and ISO 27000 (for Information Security). Today,
centers based in India account for the largest number of quality certifications achieved by any
single country.
India aims to transform India into a truly developed and empowered society by 2020. However,
to achieve this growth, the sector has to continue to re-invent itself and strive for that extra mile,
through new business models, global delivery, partnerships and transformation. A collaborative
effort from all stakeholders will be needed to ensure future growth of India’s IT-ITeS sector. We
will need to rise up to the new challenges and put in dedicated efforts toward providing more and
more of end-to-end solutions to the clients to keep the momentum going. India is now one of the
biggest IT capitals in the modern world and has presence of all the major players in the world IT
sector. HCL, Wipro, Infosys and TCS are few of the household names of IT companies in India.
Future prospects
Globalization has had a profound impact in shaping the Indian Information Technology industry.
Over the years, verticals like manufacturing, telecom, insurance, banking, finance and lately the
retail, have been the growth drivers for this sector. But it is very fast getting clear that the future
growth of IT and IT enabled services will be fuelled by the verticals of climate change, mobile
applications, healthcare, energy efficiency and sustainable energy. The near future of Indian IT
industry sees a significant rise in share of technology spend as more and more service providers
both Indian and global target new segments and provide low cost, flexible solutions to
customers.
By 2015, IT sector is expected to generate revenues of USD 130 billion (NASSCOM) which will
create a transformational impact on the overall economy. IT spending is expected to significantly
increase in verticals like automotive and healthcare while the government, with its focus on e-
governance, will continue to be a major spender.
However, to achieve this growth, the sector has to continue to re-invent itself and strive for that
extra mile, through new business models, global delivery, partnerships and transformation. A
collaborative effort from all stakeholders will be needed to ensure future growth of India’s IT-
ITeS sector. We will need to rise up to the new challenges and put in dedicated efforts toward
providing more and more of end-to-end solutions to the clients to keep
Indian IT industry was basically started with hardware products and software industry
was literally non-existent in India until 1960. Government protected the hardware sector
through high tariff barriers and licensing. In the west, there was greater demand for
software development as the inbuilt software with the systems was insufficient to
perform all the operations. The Government of India realizing the potential of this sector
to earn foreign exchange. In 1972, the government formulated a software export scheme
in which it was decided to import hardware and export software. TCS Ltd. became the
first firm to agree to this conditions. The beginning of software exports was made in the
year 1974.
Phase II: 1980- 1990
During this phase, inspite of the government initiatives, the software exports could not
reach the expected level because of two reasons. The export of software was dependant
on the imports of hardware and the procedural aspects were too cumbersome. There was
participants in this sector, relaxation to procedural activities and reduction in import duty
was mandatory. To counter the prevailing problem a New Computer Policy to policy was
formulated. According to this policy the import procedures were simplified and the
In 1986, the government took a step ahead to sustain and grow the benefits received as a
result of the New Computer Policy. It formulated software policy and liberalized the IT
industry. In this policy the imports of hardware were de-licensed and were also made
duty free for the exporters. This policy has reduced a number of entry barriers making the
In 1990, government gave impetus and established Software Technology parks of India
This period has witnessed intensified competition in the IT Industry. With companies
investing in research and development and variety of software services. As this decade
foreign investment in India and MNC s in India were introduced. “Offshore Model” “On
site model” Global Delivery Model (GDM) were introduced as a part of their
distinguished services.
The global problems like Y2k, the dotcom crash and the recession in the US economy has
forced many US firms to utilize the services of the Indian firms. This has resulted in
Post 2002 – 03, the industry had registered a robust growth rate. During this period there
was an increase in the Indian client base, large sized contracts and a strong global
delivery model.
Adequate resources are required to look after the various functions set for the
organization. These resources are men and materials, which have to be arranged by individuals
called manager. While human resources available to the management in an organization are only
a part of resources, it is only through the combined effort of the money and material resources
are utilized for organizational goals, hence managing these resources is vital.
Definition
- EDWIN B.FLIPPO
EMPLOYEE TRAINING
Training is a corner stone of sound management for it makes employee more effective
and productive organizations and individuals should develop and progress simultaneously for
their survival and attainment of mutual goals. Modern management has to develop the
organization through human resource development. Employee training is the most important
sub-system of human resource development. Employee training is a specialized function and is
one of the fundamental operative functions for human resource management.
MEANING:
After an employee is selected, placed and introduced he or she must be provided with
training facilities. Training is the act of increasing the knowledge and skill of an employee for
doing a particular job training is a short-term educational process and utilizing a systematic and
organized procedure by which employee learn technical knowledge and skills for a definite
purpose.
Thus, training bridges the differences between job requirements and employee’s present
specifications.
IMPORTANCE OF TRAINING:-
Job and organizational requirements are not static; they are changed from time to time in
view of technological advancement and change in the awareness of the total quality and
productivity management (TQPM). The objective of TQPM can be achieved only through
training, as training develops human skills and efficiency. Trained employees would be a
valuable asset to an organization. Organizational objectives like viability, stability and growth
can also be achieved through training.
NEED FOR TRAINING:-
Specifically, the need for training arises due to the following reasons:-
TRAINING OBJECTIVES:-
The manager formulates the following training objectives keeping the company’s overall
objectives in mind:-
1. To prepare the employee both new and old to meet the present as well as the changing
requirements of the job and the organization.
2. To prevent obsolescence.
3. To impact the new entrants the basic knowledge and skill they need for an intelligent
performance of definite job.
4. To prepare employees for higher level tasks.
5. To assist employees to function more effectively in their present position by exposing
them to latest concepts information and techniques.
6. To build up a second line of competent officials and prepare them to occupy more
responsible positions.
7. To develop the potential of people for the nest level job.
8. To ensure smooth and efficient working of department.
9. To ensure economical output of required quality.
10. To promote individual and collective morale, a sense of responsibility co-operative
attitudes and good relationships.
TRAINING METHODS: -
As a result of research in the field of training a number of programs are available. Since
if these are new method, while others are improvements over the traditional methods. The
training programs are classified into on-the-job and off-the-job training programs as shown
below:
TWO TYPES
step by step.
ON-THE-JOB METHODS:-
This type of training, also known as job instruction training, is the most commonly used
methods. Under this method, the individual is placed on a regular job and taught the skills
necessary to perform that job. The train helps under the supervision and guidance of a qualified
worker or instructor. On-the-Job training has the advantage of offering first hand knowledge and
experience under actual working conditions. On-the-job methods include.
1. JOB ROTATION:-
This type of training involves the movement of the trainee from one job to another. The
trainee receiver job knowledge and gains experience from his supervisor or trainer in each of the
different job assignment.
2. COACHING:-
The trainee is placed under a particular supervisor who functions as a coach in training
the individual. The supervisor provides feed back to the trainee on his performance and offers
him some suggestion for improvement. Often the trainee shale’s some of the duties and relieves
him of his burden.
3. JOB INSTRUCTION:-
This method is also known as training through step by step under this method, trainer
explains the trainee the way of doing the jobs, job knowledge and skill and allows him to do the
job trainer appraises the performance of the trainee, provides feed back information and corrects
trainee.
4. COMMITTEE ASSIGNMENT:-
Under the committee assignment groups of trainees are given and asked to solve an actual
organizational problem. The trainee’s solve the problem jointly. It develops team work.
OFF-THE-JOB METHODS
Under the method of training, trainee is separated from the job situation and his attention
is focused upon learning the material related to his future job performance. He can place his
entire concentration on learning job rather than spending his time in performing it. There is an
opportunity for freedom of expression for the trainee’s. Off-the-Job training methods are as
follows:-
1. Vestibule training:-
In this method, actual work conditions are simulated in classroom. Material, files and
equipment those are used in actual job performance are also used in training. This type of
training is commonly used for training personnel for clerical and semi-skilled jobs.
2. Role-playing:-
3. Lecture methods:-
In this method, the instructor organizer the material and gives it a group of trainees in the
form of a talk. To be effective, the lecture must motivate and create interest among the trainees.
The advantages of lecture method:
1. It is direct
2. It can be used for a large group of trainees.
3. Less costs and time.
It is method in training the clerical, Professional and supervisor personnel. This method
involves a group of people who pass ideas, examine and share facts, ideas and date, test
assumption and draw conclusions, all of which contribute to the improvement of the job
performance. The discussion involves two-way communication and hence feed back is provided.
5. Programmer instruction:-
In recent years this method has become popular. The subject matter to be learned is
presented in a series of carefully planned sequential units. These units are arranged from simple
to more complex levels of instruction. The trainee goes through these units by answering
question or filling the blanks. This method is expensive and time consuming.
EVALUATION OF TRAINING PROGRAMME
The specification of values forms a basis for evaluation. The basis of evaluation and the
mode of collection of information necessary for evaluation should be determined at the planning
stage. The process for training evaluation has been defined as “any attempt to obtain information
on the effects of training in the light of that information. Evaluation leads to controlling and
correcting the training programs. Hamblin suggested five levels at which evaluation of training
can take place. Viz.,
1. Reactions
2. Learning
3. Job behavior
4. Organization
5. Ultimate value
Bases of evaluation:-
1. Production factor
2. General observation
3. Human resource factor
4. Performance tests
5. Cost-Value relationship
6. Feed back
TRAINING PROCEDURE:
The training procedure discussed below is essentially an adoption of the job instruction
training course, which has been proved to have a great value.
As in interviewing, the first step in training is to attempt to place the trainee at ease.
Most people are somewhat nervous when approaching an unfamiliar task. Though the instructor
may have executed this training procedure, many times he or she never forgets its newness to the
trainee
There are various alternative ways of presenting the operation, viz. explanation,
demonstration etc. An instructor mostly uses these methods of explanation. In addition, one
may illustrate various points through the use of pictures, charts, diagrams and other training aids.
(6). Follow-up:
The final step in most training procedures is that of follow-up. When people are involved
in any problem or procedure, it is unwise to assume that things are always constant. Follow-up
can be adopted to a variable reinforcement schedule as suggested in the discussion of learning
principles.
Management Development
ON-THE-JOB TECHNIQUES:-
The success of these techniques depends on the immediate supervisor and how good a
teacher he is. On-the-Job techniques are especially useful for certain groups like scientific and
technical personnel.
1. Coaching:
In coaching the trainee is placed under a particular supervisor who acts as an instructor
and teaches job knowledge and skills to the trainee. He tells him what he wants him to do,
how it can be done and follows up while it is being done and corrects errors
2. Job Rotation:
The transferring of executives from job to job and from department to department in a
systematic manner is called job rotation when a managed is posted to a new job as part of such
a programs, it is not merely an orientation assignment. He has to assure the full responsibility
and perform all kinds of duties.
3. Under study:
An understudy is a person who is in training to assume at a future time, the full
responsibility of the position currently held by his superior. This method supplies the
organization a person with as much competence as the superior to fill his post, which may ball
vacant because of promotion retirement or transfer.
4. Multiple management:
Multiple management is a system in which permanent advisory committees of higher
managers study problems of the company and make recommendations to higher management
it is also called junior board of executes system. These committees discuss the actual
problems and different alternative solutions after which the decisions are taken.
Because of the fact that on the job techniques have their own limitations, these off the job
techniques are considered important to fill those gaps.
1. Case study:
Case are prepared on the basis of actual business situations that happened in various
organizations, the trainees are given cases for discussing and deciding upon the case then they
are asked to identify the apparent and hidden problems for which they have to suggest
solutions.
2. Incident Method:
Incidents are prepared on the basis of actual situations which happened in different
organizations, each employee in the training group is asked to study the incident in the actual
situation later the group studies and discussed the incident based on the group interaction and
decisions taken by each member.
3. Role Playing:
In this method, the trainees act out a given role as they would in a stage play. The role
players have to quickly respond to the situation that is ever enhancing and to react to it they
would in the real one.
4. In Basket Method:
The Trainees are first given background information about a simulated company its
products key personnel, various memoranda, request and all date pertaining to the firm. The
trainee has to understand all, this makes notes, delegate tasks and prepare memos within a
specified amount of time.
5. Sensitivity Training:
It is a laboratory situation where one gets a chance to now more above himself and the
impact of his behavior on others
6. Business Game:
These are classroom simulation exercise in which teams of individuals complete with
each other in order to achieve a given objective. Each team has to discuss and arrive at
decisions, assuming it to be management of a simulated firm.
7. Simulation:
In this, the situation is duplicated in such a way that it carries a closer resemblance to
the actual job situation. The trainee experiences a feeling that he is actually encountering all
those conditions. Then he is actually encountering all those conditions than he is asked to
assume a particular role in the circumstances and solve the problems by making a decision.
8. Managerial Grid:
It is a six phase programs it starts with upgrading managerial skills, continues to group
improvement; improves inter group relations, goes into corporate planning, develops
implementations method and ends with an evaluation phase. The grid represents several
possible leadership styles. Each style represents a different combination of two basic
orientations. Concern for people and concern for production.
9. Conferences:
A conference is a meeting of several people to discuss the subject of common interest.
But contribution from members can be expected as each one builds upon ideas of other
participate this is best suited when a problem has to analyzed and examined from different
view points.
10. Lectures:
It is the simplest of all techniques this is the best technique to present and explains
series of facts, concepts and principles the lecture organizes the material and gives it to a
group of trainees in the form of talk.
HR & OD STRUCTURE
HR Manager
Sl No FACTORS PURPOSES
1 Technological Advances Improved Productivity
2 Job Requirement Preparation of Higher Jobs
3 Human Relations
4 Top Management Support Improved Morale
5 Learning Principles
Training is not something that is done once to new employees; it is used continuously in every
well-run establishment. Further, technological changes, automation, require up-dating the skills
and knowledge. Training need arises due to the following reasons:
1) To match the employee specifications with the job requirements and organizational needs
2) Organizational viability and transformation process
3) Technological advances
4) Organizational complexity
5) Human relations
6) Change in job assignments
Needs analysis
Choosing the right instructor (faculty or trainer)
Preparing the trainee
Planning the training sessions
Presenting the operation
Follow-up (feedback)
TRAINING CALENDAR: Training calendar is the basis on which any type of training and
development program is conducted
Purpose
Scope
Definitions
Training needs
Methods of imparting
Evaluation and impact of training... feed back
Documentation
Need basis
The employee is given counseling before the training programme. After the training
program is over another counseling session is conducted so as to note the views of the employee
and motivate him for further work.
The training need format is distributed to the employees. The employees fill the required
data and send it to the department head. The department head then checks all the forms and
forwards it to the HRD department; he signs the forms and forwards it to the HRD department.
All the forms are segregated according to the similarities. The training needs are further
analyzed to formulate a definite program to satisfy all the employee needs. This analysis thus
becomes fundamental in identifying needs.
The training needs format is also included in the annual appraisal forms, which are
distributed to the employees. The employees fill these forms and send them to their respective
department heads. They further check the forms and hand them over o the HRD department.In
this any employee not able to fill or who missed the needs format form is sent the form during
the annual appraisal.
If the training programs do not satisfy the employees, then the training needs are
formulated based on the performance appraisal of the employees.
This is the appraisal form of the employees, filled by the superiors. Two people are
involved in the evaluation of an employee, the unit chief and the HR & OD head. The employee
is evaluated on the following dimensions:
Work output
Quality of work
Attendance and punctuality
Planning and organizing skills
Decision-making
Leadership and motivational skills
Communication skills etc
Based on the above factors the employee’s performance is evaluated on his
strengths/weakness at work place. This gives a detailed picture of the type of training required
by the employee.
The annual appraisal form also includes a self-appraisal form, which is filled by the
employee himself. This gives an opportunity to the employee to assess himself and put forward
his positive and negative points. Here the employee is required to write down his achievements,
any problems if faced, factors which contributed to his growth etc. as an employee is the best
judge of himself he is also required to identify the regions in which he would want any training.
Hence with the help of the appraisal forms filled by the supervisors and the employees, a
complete picture of the areas in which training programmed is to be conducted is known. A
similar procedure is followed in all the departments. All the forms are then further analyzed and
a common program satisfying all the requirements is conducted for the benefit of the employees.