PROJECT TITLED

A Study on Training & Development of HDFC Bank

Submitted by: _______________________ Enrollment no. __________________

Submitted to: _______________________

CERTIFICATE OF ORIGINALITY
This is to certify that the project titled A Study on Training Practices of Public Sector Banks is an original work of the Student and is being i submitted in partial fulfillment for the award of the Masters Degree in Business Administration of Indira Gandhi National Open University. This report has not been submitted earlier either to this University or to any other University/Institution for the fulfillment of the requirement of a course of study.

SIGNATURE OF SUPERVISOR

SIGNATURE OF STUDENT

Place: Date:

Place: Date:

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ACKNOWLEDGEMENT
Project work is never the accomplishment of an individual. Rather, it is an amalgamation of the efforts, ideas and co-operation of a number of entities. The completion of the project study that follows seemed to be a distant goal, had it not been for the contributions of a number of people. I extend a sincerest thanks to my project guide __________________ whose expertise paved the way for realization of the study objectives. The Guide helped me a lot in each stop of the project and pointed out the area, which needed more stress and coverage. The pearls of learning obtained during the course of the project would surely go a long way in shaping my career.

___________________

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TABLE OF CONTENTS
EXECUTIVE SUMMARY INTRODUCTION COMPANY PROFILE INDUSTRY PROFILE LITERATURE REVIEW OBJECTIVE OF THE STUDY PURPOSE OF THE STUDY SCOPE OF THE STUDY RESEARCH METHODOLOGY TRAINING & DEVELOPMENT AT HDFC BANK DATA ANALYSIS & INTERPRETATIONS RECOMMENDATION CONCLUSION SCOPE OF FUTURE RESEARCH BIBLIOGRAPHY ANNEXURE Personal Policies of HDFC Bank Questionnaire 1 3 5 12 16 56 57 58 59 61 68 78 79 80 81 82

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

competition and growth through expansion, diversification and acquisition has had a wide-ranging and far reaching impact on HRD. There is a need for a continuous process that aims at providing fresh knowledge and skill inputs to the employees so as to ensure the development of their competencies, dynamism, motivation and effectiveness in a systematic and planned way, thereby improving the productivity and overall organizational effectiveness. As a result, training and development activities have acquired great significance and are now firmly centre-stage in most of the organizations. Hence it can be said that with the advent of free market economy rapid change in the environment, training and development activities have assumed an importance never before witnessed in Indian corporate history. Training is the process of assisting a person in enhancing his efficiency and effectiveness at work by improving and updating his professional knowledge developing his personal skills relevant to his work and cultivating in him appropriate behavior and attitude towards his work and people he is working with. Development takes place as a result of training and essentially implies growth plus change. Thus, training and development go hand in hand. My endeavor has been to gain an in-depth insight into the process of discovering, harnessing and developing of the human capital to the benefit of both the individual and the organization into days highly dynamic and

competitive business world through a comprehensive study and analysis of the latest training and development techniques. In terms of training design the trainer needs to be alert to the demands made by: learning behaviour results required

For best effects it is important to consider what a particular piece of training will deliver in terms of new knowledge, skills, ideas and abilities and also what the individual will do with that learning in their job. The trainer will need to develop a design, which includes or specifies how the learner is to transfer what they have learned to their workplace and integrate it into dayto-day standards and behaviours. The final issue to be considered is how the required results can be measured and be seen to have resulted from the training provided. Employees sent to various programs need to be evaluated so as to ascertain the effectiveness of the program. Many people agree to the basic fact that no much of a systematic effort towards evaluation exists in the organization. Goods evaluation is based on careful specification of training objectives and performance measures that will be used to determine if the training objectives have been successfully achieved.

INTRODUCTION
Every organization needs well-trained and experienced people to perform the activities that must be done. A job in today's dynamic organizations have increasingly become complex, the importance of employee education and training has increased. When jobs were simple, easy to learn and influenced only a small degree of technological changes, there was little need for the employees to upgrade their skills. But the situation has drastically changed today. Instead, rapid job responsibilities are occurring, requiring employee skills to be transferred and tuned. Training is a learning experience in that; it seeks a relatively permanent change in an individual that will improve the ability to perform on the job. Training can involve changing of skills, knowledge, attitudes and behaviour. Training is a prerequisite to improved performance as preparing human resources for new jobs, transfers, promotions or change over to modern technology as equipment. In addition to training of new entrants, manpower at all levels require refreshers' training from time to time to avoid personal obsolescence and improving competency to hold higher positions. Filippo Lucidly discussed several advantages that stem from training. This includes increased productivity, heightened morale, reduced supervision, reduced accidents and increased organizational stability and flexibility. With the increase in skills, there results an increase in both quality and quantity of performance. The individuals who are equipped with the requisite training accomplish the basic human needs such as security and ego satisfaction. Trained employees can perform their work effectively even with little supervision. It has been recognized that more errors are caused because of inadequate preparedness on the working conditions. Adequate training on job skills and positive attitude is likely to minimize rates of errors considerably. The ability of the organization to maintain its effectiveness despite the loss of key persons can be accomplished by keeping a reservoir of trained replacement.

Training as part of the business A useful approach for understanding the training process is to consider it as a system whose boundaries interact with the rest of the business. Training needs are identified, training is provided to meet the needs, the output is compared to the requirements and any necessary changes are made to the system to obtain the desired output. However, while this approach helps to understand how training processes operate, it also puts training at the center of the universe. The effect of this training-centred approach is that the business will see training either as a panacea for all problems or as having no direct relevance to the business. A better approach is to extend the boundaries of the system so training is an integral part of the business. Banks, which have made this degree of progress, have taken the first step towards being a 'learning organization'. Organizational flexibility can be achieved by maintaining highly trained people with multiple skills to permit their smooth transfer to jobs where the demand has multiplied. Indeed, a well-trained workforce is the greatest asset to any organization. Indian service industry is presently towards a rapid development track. Improved technology and techniques are being obtained from the developed countries. New quality systems are being accepted and implemented in the form of ISO 9000 and QS 9000 Certification. In the light of the transformation to be achieved, the most important area for concentration in Indian organization particularly the banking industry would be developing the work culture conducive for performance excellence. This can be achieved by giving enormous thrust to human resource management activity in the organizations, particularly giving training to employees. Training programs supported to improve job performance, minimize conflicts, prepare individuals for promotion, and to accept organizational changes facilitate understanding of organizational goals and attain allied behavioural activities.

COMPANY PROFILE
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. HDFC Bank began operations in 1995 with a simple mission: to be a "Worldclass Indian Bank". We realised that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. Company Vision To build a World-Class Indian Bank. It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally. 2007

The Asian Banker Excellence in Retail Financial Services Awards Best Retail Bank in India 5

Asian Banker Our Managing Director Aditya Puri wins the Leadership Achievement Award for India 2006

Business Today Best Bank in India. Forbes Magazine One of Asia Pacific's Best 50 companies. Businessworld Best listed Bank of India. The Asset Magazine's Triple A Country Awards Best Domestic Bank. Asiamoney Awards Best Local Cash Management Bank in Large and Medium segments. Euromoney Awards "Best Bank" in India. 2005

Asiamoney Awards Best Domestic Commercial Bank Asiamoney Awards Best Cash Management Bank - India . The Asian Banker Excellence Retail Banking Risk Management Award in India. Hong Kong-based Finance Asia magazine Best Bank India

Economic Times Awards "Company of the Year" Award for Corporate Excellence. The Asset Triple A Country Awards Best Domestic Bank in India Region - 2005 The Business Today-KPMG Survey Best Local Cash Management Bank in India US$11-100m - 2005 The Business Today-KPMG Survey "Best Bank in India" for the third consecutive year in 2005. Economic Times - Avaya Global Connect Customer Responsiveness Awards "Most Customer Responsive Company - Banking and Financial Services 2005 2004

Asiamoney Awards Best Local Cash Management Bank in India US$11-100m Asiamoney Awards Best Local Cash Management Bank in India >US$501m Asiamoney Awards Best Local Cash Management Bank in India 1989-2004 (poll of polls) Asiamoney Awards Best Overall Domestic Trade Finance Services in India - 2004 Asiamoney Awards Most Improved company for Best Management Practices in India - 2004 Business World One of India's Most Respected Companies - 2004

Forbes Global Best Under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and Europe - 2004 Asian Banker Awards Operational Excellence in Retail Financial Services - 2004 The Asset Triple A Country Awards Best Domestic Bank in India - 2004 2003

Forbes Global Best Under a Billion, 200 Best Small Companies - 2003 The Asset Triple A Country Awards Best Domestic Bank in India -2003 BusinessWorld - The Business World Most Respected Company Awards One of India's Most Respected Companies The Asset magazine Best Cash Management Bank The Asset magazine Best Trade Finance Bank FE-Ernst & Young Best Banks Survey Best New Private Sector Bank - 2003 Outlook Money Best Bank in the Private Sector 2003 Business Today Best Bank in India -2003 NASSCOM & economictimes.com - IT Users Awards

Best IT User in Banking -2003 There have been some other proud moments as well: London-based Euromoney magazine gave us the award for "Best

Bank - India" in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank in India" in 2001 and 2002 Asiamoney magazine has named us "Best Commercial Bank in India

2002". For our use of information technology we have been recognized as a

"Computerworld Honors Laureate" and awarded the 21st Century Achievement Award in 2002 for Finance, Insurance & Real Estate category by Computerworld, Inc., USA. Our technology initiative has been included as a case study in their

online global archives .The Economic Times has conferred on us The Economic Times Awards for Corporate Excellence as the Emerging Company of the Year 2000-01. Leading Indian business magazine Business India named us "India's

Best Bank" in 2000. In the year 2000, leading financial magazine Forbes Global named us

in its list of "The 300 Best Small Companies" in the world and as one of the "20 for 2001" best small companies in the world. We are aware that all these awards are mere milestones in the continuing, never-ending journey of providing excellent service to our customers. We are confident, however, that with your feedback and support, we will be able to maintain and improve our services. HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 684 branches spread over 316 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major

industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base. The Bank also has a network of about over 1695 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. Retail Banking Propelled by higher fee-based income and retail banking, HDFC Bank, countrys third largest bank in market capitalisation, posted a net profit of Rs 321.2 crore for the first quarter ended June 30, 2007. The rise in profit was 34.2% above the June quarter of the previous year. With a spread of 4.1%, almost 55% of the profit was contributed by the retail banking segment, said a senior executive of the bank. The banks Capital Adequacy Ratio (CAR) was at 13.1% as of June 30, 2007, of which tier I CAR was 9.2%. The bank is raising around Rs 3,000 crore of capital shortly through a combination of overseas and domestic borrowing programme. Though there has been further slippage of stressed assets in absolute amount, the net non-performing assets of the bank for the reporting period is pegged at 0.4% of its total advances. Other income (non-interest revenue), registered a strong growth of 77.3% from Rs 290.9 crore for the first quarter ended June 30, 2006 to Rs 515.8 crore in the first quarter of the current year. Other income (non-interest revenue) consisted principally of fees and commissions of Rs 372.2 crore, foreign exchange and derivatives revenues of Rs 146.5 crore, and loss on investments of Rs 4.1 crore, as against Rs 290.6 crore, Rs 55.8 crore and Rs 62.29 (loss) crore respectively, for the quarter ended June 30, 2006.

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The banks total income is estimated at Rs 2,641.7 crore for the quarter ended June 30, 2007, as against Rs 1,795.2 crore of the corresponding previous year quarter. The banks provisions and contingencies for the quarter were Rs 307.1 crore, comprising specific provisions for non-performing assets and general provision for standard assets of Rs 299.7 crore as against Rs 185.4 crore for the quarter ended June 30, 2006. Total balance sheet size as of June 30, 2007, was Rs 105,695 crore, an increase of 32.6% over June 30, 2006. Banks total deposits were Rs 81,604 crore, 34.6% over Rs 60,630 crore of the previous year quarter. Savings Net advances at Rs 53,839 crores as of June 30, 2007 were up by 32.7% over June 30, 2006. Retail loans constituted 57% of the net advances as of June 30, 2007. The banks total customer assets (including advances, corporate debentures, investments in securitised increased to Rs 45,764 crore in June 30. DIFFERENT DEPARTMENTS Middle market Global Banking Mutual Funds Payments Cash Management ITSM Customer service Trade Service Home Loan Personnel Loan HR Corporate Sales Locker

Credit cards

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INDUSTRY PROFILE
a) Origin and development of the industry Banking Industry in India has always revolved around the traditional function of deposits and credit. Their role had been defined as to assist the overall economic growth with majority of share being controlled by the Government of India in most of the banks. But with the process of liberalization, and the technological revolution the banking industry has also undergone tremendous change in the last 5 years. The market, which was largely controlled by the public sector banks, has now been facing stiff competition not only from foreign players but also from the new generation private sector banks. The rules of the game have been changing with the RBI introducing new norms to make banks more accountable and to adopt the practices followed worldwide. Most of the banks have now been trying to function on the concept of a Universal Bank. Apart from the traditional functions of a commercial bank, they are taking steps to build themselves into a one stop financial centre wherein all the financial products would be available. Banks have started catering to the retail segment to improve their deposit portfolio. In order to have a maximum share in this segment, most of the banks have been introducing new products. The delivery channels have also been shifted from branches to ATMs, phone banking, net banking etc. Banks traditionally involved in working capital financing have started offering consumer loans and housing loans. Some of the banks have started offering travel loans as well. Retail financing is the other area where the banks have started to concentrate. The loan formalities too have been relaxed to a great extent and sanctioning time has been speeded up. History of Banking Industry Banks are the most prominent and very important part of the financial economy of India. The performance of banks is completely linked to the growth of the economy while the nature and quantum of growth is in turn 12

linked to the availability of bank credit. banks have been used by successive governments to achieve their social, political and economic goals. the structure of the government banking system has undergone numerous change since independence. two phases of nationalization, introduction of regional rural banks in 1975 (to focus on rural spread on banking) and permission to new private banks to set up operations since 1993-94 are some of the major changes undergone. Banking Industry in India has always revolved around the traditional function of deposits and credit. Their role had been defined as to assist the overall economic growth with majority of share being controlled by the Government of India in most of the banks. But with the process of liberalization, and the technological revolution the banking industry has also undergone tremendous change in the last 5 years. The market, which was largely controlled by the public sector banks, has now been facing stiff competition not only from foreign players but also from the new generation private sector banks. The rules of the game have been changing with the RBI introducing new norms to make banks more accountable and to adopt the practices followed worldwide. Most of the banks have now been trying to function on the concept of a Universal Bank. Apart from the traditional functions of a commercial bank, they are taking steps to build themselves into a one stop financial centre wherein all the financial products would be available. Banks have started catering to the retail segment to improve their deposit portfolio. In order to have a maximum share in this segment, most of the banks have been introducing new products. The delivery channels have also been shifted from branches to ATMs, phone banking, net banking etc. Technology has become an important medium of not only attracting new customers but also in retaining them. The new generation private sector banks have made a strong presence in the most lucrative business areas in the country because of technology upgradation. While, their operating expenses have been falling as compared to the PSU banks, their efficiency

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ratios (employees productivity and profitability ratios) have also improved significantly. b) Growth and present status of the industry. KEY INDUSTRY STATISTICS OF SCHEDULED COMMERCIAL BANKS (Rs bn) 2006 Total deposits Demand Time Total bank credit Food non-food Investments govt. sec other approved sec Cash in hand Balance with RBI Cash-Deposit ratio Investment-Deposit ratio Credit-Deposit ratio 7140 1174 5966 3688 168 3520 2545 2232 313 43 635 9.50% 35.70% 51.70% 2007 8132 1273 6859 4358 256 4102 3088 2784 304 53 574 7.70% 38% 53.60% 2008 8729 1266 7463 4667 320 4347 3332 3023 309 53 631 7.80% 38.20% 53.50% 2009 9928 1347 7498 4779 373 4399 3347 3038 314 57 656 7.80% 38.20% 53.50%

Banks traditionally involved in working capital financing have started offering consumer loans and housing loans. Some of the banks have started offering travel loans as well. Retail financing is the other area where the banks have started to concentrate. The loan formalities too have been relaxed to a great extent and sanctioning time has been speeded up.

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Mergers and Acquisitions have also started playing their role in the banking industry where lots of players are trying to consolidate their position. The recent merger of HDFC Bank with Times Bank and ICICI Bank with Bank of Madura are important steps in this direction. In recent times, most of the new private sector banks have shown interest in inducting a foreign partner in their operations. Most of the banks are also planning to enter the insurance business and are in the process of identifying their strategic partners. Since most of the banks already have an extensive distribution network, this new business should result in substantial revenues. But with most of the top league players planning to enter this business, the more efficient and pro active players would be able to take a lead. c) Future of the industry. The Indian Banking industry is largely dominated by the public sector banks. These banks till the early 90s were involved in the traditional banking business of deposits and credit lending. They performed a supportive role in the overall growth of the economy. While most of these banks used to focus on the growth of balance sheet, profitability was not a significant factor in the competition. In most of the banks, the government has a holding of 100% whereas in the few banks, the stake has fallen because of a public issue in the post liberalization period. The government is proposing to bring out a bill wherein its share in all these banks would stand reduced to 33% from the current levels.

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LITERATURE REVIEW
Organisations are made up of people and function through people. Without people organisations cannot exist. The resources of men, money, materials and machinery are collected, coordinated and utilized through people. These resources by themselves cannot fulfill the objectives of an organisation. They need to be united into a team. It is through the combined efforts of people that material and monetary resources are effectively utilized for the attainment of common objectives. Without united human efforts, no organisation can achieve its goals. All the activities of an organisation are initiated and completed by the persons who make up the organisation. Therefore, people are the most significant resource of any organisation. This resource is called human resource and it is the most important factor of production. According to L.F. Urwick, "business houses are made or broken in the long run not by markets or capital, patents or equipment but by men." Of all the resources manpower is the only resource, which does not depreciate, with the passage of time. From the national viewpoint, human resources may be defined as "the knowledge, skills, creative abilities, talents and aptitudes obtained in the population." From the viewpoint of an organisation, human resources represent the people at work. They are the sum-total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees. According to Jucius, human resources or human factors refer to "a whole consisting of inter-related, interdependent and interacting physiological, psychological, sociological and ethical components." Thus, human resources represent the quantitative and qualitative

measurement of the workforce required in an organisation. Human resources are characterized by the following features: (i) Human resources of an organisation are the product of their biological inheritance and interactions with the environment. Family relationships, religious influences, caste or racial background,

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educational accomplishments and organisational climate influence the attitudes, behaviour and performance of human beings. (ii) Human resources are heterogeneous. They consist of a large number of individuals each having a unique personality, different needs, attitudes and values. Each has his own physical and psychological traits. Most of the problems of an organisation are people-related problems. These problems arise from the mistaken belief that people are alike and they can be treated identically. In order to make effective use of its human resources, an organisation must recognise and pay attention to differences between individuals so that each person can maximize his/her potential. (iii) Human resources are dynamic and behave differently. They react to the same situation in quite different ways. Even the same individual may behave differently at two different points of time. It is, therefore, very difficult to predict human behaviour. (iv) Human resources are the most important element in an organisation. The effective utilization of all other resources depends upon the quality of human resources. (v) Human resources have the greatest potential to develop and grow provided the right climate is provided to them. An organisation can survive and grow if it has the right people at the right time working at right jobs. (vi) The term human resources is wider than the term personnel. Human resources include all the dynamic components of all the people at all levels in the organisation whereas personnel means the employees working in the organisation. Training and Development The effective functioning of any organization requires that employees learn to perform their jobs at a satisfactory level of proficiency. An effective organization wishes to have amongst its ranks individuals who are qualified

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to accept increasing responsibilities. So much so that organizations need to provide opportunities for the continuous development of employees not only in their present jobs, but also to develop their capabilities for other jobs for which they might later be considered. Training refers to the teaching/learning activities carried on for the primary purpose of helping members of an organization to acquire and apply the knowledge, skills, abilities and attitudes needed by that organization. Broadly speaking, training is the act of increasing the knowledge and skill of an employee for doing a particular job. Though it is true that unplanned learning through job experience helps development, the experience of most organizations is that it is advantageous to plan systematic training programmes of various types as a regular part of an adequate personnel development programme. Such programmes are definite assets in helping managers to learn correct job methods, to achieve a satisfactory level of job performance, and to acquire capabilities that would be valuable in possible future jobs. Planning and Training Activities The following steps must form the basis of any training activity: 1. Determine the training needs and objectives. 2. Translate them into programmes that meet the needs of the selected trainees. 3. Evaluate the results. Training Inputs There are three basic types of inputs: skills, attitudes, and knowledge. The primary purpose of training is to establish a sound relationship between the worker and his job- the optimum man-task relationship. Such a relationship is at its best when the workers attitude to the job is right, when the workers knowledge of the job is adequate, and he has developed the necessary skills.

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Training activities in an industrial organization are aimed at making desired modifications in skills, attitudes and knowledge of employees so that they perform their jobs most efficiently and effectively. Skills Training activities nowadays encompass activities ranging from the acquisitions of a simple motor skill to a complex administrative one. Training an employee for a particular skill is undertaken to enable him to be more effective on the job. For instance, new workers can be trained to achieve levels of output attained by experienced older workers. Similarly existing workers whose levels of output are below par can be retrained. Attitude Through orientation (induction) programmes, organization develops attitudes in new employees, which are favorable toward the achievement of organizational goals. Training programmes in industry are aimed at moulding employee attitudes to achieve support for company activities, and to obtain better cooperation and greater loyalty. Knowledge Training aimed at imparting knowledge to employees in the organizations provides for understanding of all the problems of modern industry. This knowledge for a worker is specific to his job, and related broadly to plant, machinery, material product, and quality and standard of product. Knowledge for managerial personnel may be related to complexity of problems in organizing, planning, staffing, directing and controlling. In general, training initiated for imparting knowledge to employees should consider three aspects: 1. Knowledge in general about factory and work environment- job context 2. Specific knowledge related to job- job content 3. Knowledge related to quality and standards of product or quality of

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work. Areas of Training Areas of training can be classified into the following categories: 1. Training in company policies and procedures (induction training) 2. Training in particular skills. 3. Training in human relations. 4. Managerial and supervisory training. 5. Apprentice training. Training in company policies and procedures This is a part of the induction of a new employee. The objective is to orient new employees with the set of rules, procedures, management, organization structure, environment and products, which the firm has and/or deals with. Orientation is a continuous process aimed at the adjustment of all employees to new and changing situations. It aims to impart the facts of company rules and policy, to create attitudes of confidence in the company, prides in the products, respect for company personnel, and to provide information about needs and skills, development, quality of production and work organization. It also enables employees to get the first impression of the culture of the firm and the kind of people he will have to deal with. At no time does it allow for questioning or change of system. It, therefore, in no way contributes to the organizations growth, nor does it enhance an employees ability to contribute to the organizations growth. Induction programs are also used for in-company promotes, who have to be oriented to the demands of their requirements. Induction programs are based on the philosophy that the process of initial adjustment and entry to the organization is a difficult process. Unless a conducive and supportive atmosphere facilitates it, it would leave the new entrant with several uncertainties in his mind and make his assimilation in 20

organizational life more complex and difficult. Many organizations are conscious of this and devote considerable effort to make the initial entry phase a pleasant and cordial one. Training In Particular Skills Training of employees for particular skills is undertaken to enable the employee to be more effective on the job. It is a here-and-now proposition, somewhat like induction training, which does not have a very significant development aspect to it. Its aim is narrow-to guarantee a certain contribution to the job, for instance sales training and machine skills. Human Relation Training This is a broad category embracing many different aspects. Self-learning and inter-personnel competence can be included in this category-all concerned with generally the same theme. It stresses a concern for individual relationships, for feeling and treating people as human beings, rather than as machines. Not only is this concern and awareness in ones attitudes and behavior conducive to better work-place relations, but also to enhanced productivity. This category of training is oriented towards the development of the individual and consequently the organizations efficiency in terms of better teamwork. Problems Solving Training Many in-company programmes also revolve around organizational units, like divisions of branches, which generally handle a product line. The practice is to hold together all managerial personnel in a particular division/ branch from the both headquarter and the field of offices and discuss common problems and solutions across the table. This not only helps solve problems, but also serves as a forum for the exchange of ideas and information, which could be utilized in other situations. Managerial and Supervisory Training The managerial job combines both techniques and conceptual knowledge. If it is that of a specialist, it would emphasize some techniques and knowledge 21

like operations, research, finance, production, and personnel management. If on the other hand it is a general management job, then the emphasis would be on the principles of scientific management: organizing, planning, staffing, directing and controlling. Apprentice Training The apprentice act 1961 was based on the philosophy of providing some technical training for unskilled people in order that their employment opportunity is enhanced, or alternatively to help them be self-employed. Industrial organizations in specified industries are required to train apprentice in proportion to their workforce in designated trades. The duration of training is one to four years. Learning and Training Irrespective of the type or method of training, trainer has to keep in mind some of the principles of learning or motivation, which would enhance internalization of what is taught. Motivation A trainee needs to have a desire to learn and benefit from the programme. If he is not interested, or is de-motivated, then the learning outcome is going to be insignificant and the company will have spent its money badly. On the other hand, being too intense about learning and outcome may result in setting over-ambitious goals for the individual. Reinforcement Following on the concept of motivation is that of reinforcement. For learning to take place and be internalized to the desired extent, a trainee is rewarded or given some encouragement. This reinforcement, or the acknowledgement that what has been acquired is desirable, can be either an extrinsic or intrinsic reward- external praise or some tangible reward, or the individuals feeling of a sense of progress. Current stress is on positive support and helpful behavior, even when mistakes are made.

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

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govern or influence the standard and scope of training the organization. Training policies are necessary for the following reasons. 1. To highlight the firm's approach to the training function, provide guidance for design and execution, and to provide information regarding programmes to all employees. 2. Formulation of policy helps in identification of priority areas in training, and since resources are scarce, they are prioritized according to felt needs. 3. A training policy document helps to communicate the firm's intent regarding an employee's career development, and also gives the employee the opportunity to better his prospects through training. Positive Outcomes of Training The continued effectiveness and efficiency of an organization is to some extent dependent on the ability of its employees to produce at high levels of efficiency, and keep abreast with their changing job-role demands. Training will provide for an output in this direction. The several positive benefits of training are that: Training helps employees to learn their jobs and attain desired levels of performance speedily thus cutting costs and contributing to better utilization of machines and materials, for example in workers' categories. Training helps to reduce the cost of raw materials and products-reducing losses due to waste, poor quality products and damage to machinerywhich would result if an untrained employee were to learn on his own. Employee motivation is enhanced when employees known that the firm would provide them training opportunities to increase their skills and knowledge, thus enabling them to develop and qualify for higher posts. Such practices create favorable attitudes towards the organization, which could result in better adjustment and commitment to one's work and the organization. Thus cooperation could help reduce employee turnover, absenteeism, accidents, dissatisfactions and grievances. 24

Finally, training aids in the development of individual skills, better methods, new equipment, and sometimes new work place relationships. Such a process would also facilitate technological change by updating the versatility of employees.

Training Methods Training methods are a means of attaining the desired objective in a learning situation. Given background work such as identification of training needs, a programme design and its duration (based on these needs), it then becomes pertinent to analyze and select the best method or combination of methods, given the several constraints, to attain the programme objective. The choice of a method several constraints, to attain the programme objective. The choice of a method would depend on a wide variety of factors, such as competence of instructors, relevance to the participants, the programme design, i.e., is a particular method the best vehicle to put across the contents, and finally its cost implications. Numerous training methodologies and techniques have been developed over the years to meet certain specific needs. Each method has structured procedures for conduct that offer certain advantages in developing certain limited facets of a trainee, and suffer from some limitations. In using a particular method, one should know its strengths and weaknesses, given the situation, and analyze its relevance, its purpose, and if it is useful, how to get the most out of it. This would provide the rationale of the various training methods. The trainer should know the rationale of each of the methods before attempting to use any of them. Objectives of Training Methods Training methods have a number of overlapping objectives. As stated earlier, they have to be chosen in relation to the programme design requirements. The main objectives of individual training methods could be: demonstration value, developing interest and finally, appeal to senses.

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However, more than one, or even all three objectives may be found in one method. Demonstration Value Complete demonstration of job requirements is training of a kind that enables the trainee to grasp the meaning of ideas, concepts, or procedures visually. Such a method can be used effectively as an aid to overcome the "breakdown of communication". People remember things that they see and hear, much longer than they do information they receive through talks or reading, alone. Developing Interest One of the factors to be kept in mind in choosing a method is its ability to hold and arouse the interest of the trainee in the learning situation. Much research has been done in the field to test the effectiveness of various methods. A trainer has to consider alternative methods of presenting training material to participants in order to stimulate their interest and facilitate retention of the matter. For instance, if traditionally the matter has been presented through lectures, perhaps audiovisual methods could be used, or instead project work be assigned which would mean learning by doing or researching the subject oneself. Appeal to Many Senses The statement that "to see a thing once is better than to hear it a hundred times emphasizes the inadequacy of words as a means of communication. Experience indicates that almost 75 per cent of what we imbibe is through the sense of sight and the rest is through the sense of hearing, touch, smell and taste. From the trainer's point of view it would be beneficial to utilize as many of the trainee's senses as possible, in order to improve retention of learning. Application of these basic objectives or guidelines alone would not be enough. For the appropriate use of a method, problem analysis and needs identification are also necessary.

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The trainer has to understand and identify the problem area; what is wrong, and where is the correction needed? He has to examine whether there is a problem with the manner in which the task is done, i.e., an operational problem, or whether there is a problem with an individual or individuals, i.e., a human-relations problem. Secondly, selecting the appropriate method would be dependent on the level of the trainee in an organizations' hierarchy-is he a shop floor worker, supervisor or a manager? Finally, before selecting a training method, the trainer should keep the mind cost effectiveness. Classification of Methods Depending on the learning outcome, and the process by which it is attained, it is possible to categorize the various methods into several groups. On-the-job-oriented Training Methods In this cluster are included methods whose main objective is centered around the job, more specifically, learning on the job itself by a variety of methods. They embrace development through performance on the job, where organizational strength and constraints, human behavior and technological systems have full and free play. Methods, which fall into this category, are: 1. On-the-job training. 2. Job rotation. 3. Guidance and counseling. 4. Brainstorming sessions. 5. Syndicate method (working in small groups). Simulation Methods Real-life situations are simulated for imparting training. The methods falling in this category are:

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1. Role-play. 2. Case method. 3. Management games. 4. In-basket exercise. Role Play The role-play method requires participants to enact roles on the basis of a written script or an oral description of a particular situation. The enactment process provides an insight and understanding of the demands and situations of the assigned role, thereby facilitating empathy with another's (actual) role. The main emphasis in management training is in facilitating better understanding of interpersonal problems, and attitude change. If not handled well, however, it could degenerate a childish exercise, where, instead of focusing on the problem to be understood, the situation might be over-dramatized. Case Method The case is an actual situation, which is written for discussion purposes. Analysis would need problem identification, analysis of the situation and of its causes. There could be several solutions to the problem, and each of these alternatives and their implications needs to be examined. In the real world, on many occasions, a manager may not have all the relevant information with him before taking a decision. Similarly, the case method approximates this reality and in many situations decisions are taken with limited data, or what is termed decision-making under uncertainty. The managerial response in such a situation is explored and understood and learning consists of developing problem-solving skills. Management Games The game is built around the model of a business situation and trainees are divided into teams representing the management of competing companies. They simulate the real-life process of taking operation decisions. Decisions taken are analyzed by a computer, or manually, and a series of the 28

implications of these decisions are fed back. The game is played in several rounds to take the time dimensions into account. In-basket exercise This is a simulation training technique designed around the "incoming mail" of a manager. A variety of situations are presented which would usually be dealt with by an executive in his working day. His reactions and responses are taken down in writing and then analyzed. Feedback on his decisions forces him to re-consider not only his administrative actions but also his behavioral style. Knowledge-based methods In this method of training, an effort is made to expose participants to concepts and theories, basic principles, and pure and applied knowledge in any subject area. Basically, it is aimed at creating an awareness of the knowledge of fundamentals. The focus is essentially transmission of knowledge which has to be imbibed by the participants. The methods in this category are: 1. Lectures. 2. Seminars, workshops. 3. Educational training programmes at academic institutes. 4. Programmed instruction in which knowledge is disseminated in book form to be learnt at the individual's pace, and where feedback on the learning is a given aspect of the method. 5. Films and TV. 6. Group discussion, especially in combination with some of the above, for assimilation and integration. Training Organization There are several administrative aspects that have to be taken into account before launching in-house training programme, or nominating participants to external programmes. 29

In-Company/External Programmes The company needs to formulate its thinking regarding participation in programmes offered by external agencies like educational management institutes, government institutions and consultant programmes, vis--vis conducting its own in-house programmes. Where employee numbers are small, it may not be worthwhile to set up a training establishment and conduct in-house programmes, but as the numbers increase, this options may offer a distinct possibility. There is the cost aspect to be considered: for the cost of sending a participant to an external programme, several employees could be trained within an organization. Yet, the advantage of an external programme would be a breath of fresh air through discussions with other participants and a fresh approach could be brought into the organization and its problems. The skills and techniques learnt might also be different from those offered by one's own in-house programmes. Training Budgets A training budget for each internal programme has to be prepared, which would include cost of facilities like training room, food, transport, guest faculty, if any, and cost of teaching materials. In fact, the cost to the organization should also include the wages and salaries of employee participants who would be temporarily pulled out of their regular jobs and sent for training. Yet, organizational requirements would necessitate their jobs being done by someone else. The reason for costing the trainee employee's salary would be that they would not be making any contribution to the company during the training period, and that this is an additional burden on the company's finances. Evaluation of Training Evaluation of any activity is important, since in evaluating one tries to judge the "value or worth of the activity, using the information available". What is the purpose of evaluation? Evaluation, by bringing to the fore "weaknesses and failuresstrengths and successes," helps to improve

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training methods. Evaluation helps management to answer the following questions The relevance of the programmes to the organization's needs-what changes if any should be made in existing programmes to realign to the organization's needs. Feedback on the choice of areas of training will also need to be examined in the context of its contributions to the organization's effectiveness. Should the money continue to be spent on this activity, or another more relevant activity that will improve attainment of the organization's objectives? Reactions from trainees about the training programme can help identify its strengths and weaknesses. These reactions can be used as a base for the improvement of programmes, but those evaluating must first be definite about the aspects they are interested in investigating. An evaluation of a training method or system must also take into account the suitability of objectives. "If the objectives were inadequately formulated in the first place, even a 'good' training programme has really no chance to be effective." Objectives have to be clear-cut, must relate to needs, and make way for changes. Objectives cannot be static and need to be re-appraised frequently so that training may result in improved overall organizational efficiency. Evaluation of objectives helps to bridge the gap between needs and objectives. The Evaluation Process The most useful means of evaluating training are observations, ratings, trainee surveys and trainee interviews. Observation is concerned with observing the behavior of people in a certain situation. To be useful, it must be specific, systematic, quantitative, recorded and expert. Needless to say, observers, must be trained and have specific ideas about what they are 31

looking for. This is the most direct method of "assessing the quality of formal training and of identifying deficiencies". The second method of evaluation is that of ratings. "Various elements of the training system should be rated independently by several qualified raters. These elements include trainees, instructors, equipment, materials, training aids and facilities." The use of rating scales requires supervised practice, as it is easy to commit errors. The third method is trainee surveys where opinions of the trainees are used for evaluation. These opinions should not be used independently, since they cannot always be relied on to be objective. The fourth method is trainee interviews, whereby ideas and views that trainees might not put down on paper can be determined by "skilful questioning". This method allows for more precise information and details to be obtained and prevents ambiguity, especially in interpretation. The final method is that of collecting the observations and recommendations of instructors through surveys and interviews "to ensure that the system is consistent with the needs of the implementers of the training". Interviews with instructors will bring to the surface characteristics that instructors may feel reluctant to put down on paper. Is Training The Best Medicine? Imagine this: A man is having chest pains. He rush as to his doctor, tells him he is having a heart attack, and demands that he perform open-heart surgery. He obligingly agrees. It is not until after a great deal of pain and expense that he discovers it was only in digestion. When it comes to training, a similar situation happens all the time. If scrap rates are too high, productivity is too low, and employees neglect to follow standard quality procedures, they must need more training. Before rushing into the pain and expense of interrupting production to send them off to a seminar it is necessary to make sure that training is the proper solution.

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

A professional trainer can be hired to perform an analysis but its not just a technique for trainers. Everybody should be trained in this simple process. Its a supervisors or a managers job to make sure people can do their jobs. To do training needs analysis the following steps should be followed: Study current performance: Before tying to change anything, its essential to know what is already happening. What skills and knowledge do employees already have? What tasks are they performing on their daily jobs?

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Define ideal performance: what standard of performance is necessary for the business and the employees to be a success? What tasks must they do? What level of accuracy or productivity should they achieve? What skills and knowledge must they have? Find the gap: What is the difference between the definition of ideal performance and what the employees are currently doing? Are there any areas that arent functioning as well as they should? Where are there opportunities for improvement? This is the performance gap that the company is trying to fill. One must look for problems or opportunities that may occur in future as well as ones that already exist. Identify the cause: Why are workers not working up to standard? Have they ever performed the job correctly? Where and when do the problems occur? Has anything changed recently that might have instigated the problem? Compare best and worst performers to find the differences in what they do. When these steps have been completed one should be ready to make diagnosis, but it must be remembered that training is not the only medicine for ailing performance. Although it is often mistakenly applied as a cure- all, the only problem that training can solve is a lack of skills and knowledge. Do employees know how to do the job? Could they do it if their lives depended on it? If so, probably there is no training problem. There are many reasons why a worker might not be doing his job correctly, including unclear expectations, insufficient feedback, lack of incentive and adverse working conditions. These are all management problems that can only be improved by management changes. Too often, people see the gap and they want to just leap right in and fix it. The key is not to jump to the solution, which is assumed to be training. Understanding the situation is the first step. Then, once one understands the situation one can think about why (The problem exists). Only if its because (employees) lack skills and knowledge should training be considered as a solution.

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TRAINING & TRAINING NEED IDENTIFICATION Training: After the best applications for the available positions have been selected, the staffing process is almost complete. Now the retail firm must give the selected applications the knowledge and skills they need to be productive employees. The process of bringing a new hire up to speed is called employee training. Knowledge of companys policies and procedures and of the stores products and services is basic to all positions. So are an understanding of the stores customers and their needs and desires, knowledge of competitive retail offerings, and basic information about dress codes, sick leave, parking, and scheduling. Basic information about the firm usually is spelled out in the employees handbook. The firm should make the employee handbook available to new employees as soon as they are hired. The Whole Foods Market, whose highly regarded handbook was mentioned earlier, includes key aspects of the firms strategic plan. Employees of the firm found the material so helpful that they suggested new hires take a quiz on the information to determine whether they understand it. Whole Foods follows the legally recommended practice of keeping a file of signed forms indicating that employees have received and have had the opportunity to read and understand the company handbook. The difference between the knowledge and skills the job requires and those the new hire possesses will depend on the individual. A person who has worked for the store in the recent past will need little training, whereas someone with no experience in retailing will needs a great deal. To avoid moving too quickly for some employees and too slowly for other, some firms have structured their training programs in units so that materials can be skipped or repeated as necessary. The key to successful training is to ensure that new employees get the information they need early in their careers. Unfortunately, reduced profits and high employee turnover have forced some companies to reduce the time and money devoted to training a move that almost guarantees human resource problems.

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Training programs can use a variety of educational tools. Lectures, videotapes, manuals, role playing, and computerized exercises can be useful. The key to determine the type of information employees need to learn and then match that need with the most appropriate learning tools. A lecture or videotape may be the best way to communicate the history of the organisation, whereas role playing may be more effective in teaching selling and negotiation skills. Compares initial employee training with the ongoing activity of keeping employees skills up to date. As the figure shows, employee training is designed to increase the new employees skills to the point where he or she can perform on the job effectively. The size of the gap between the incoming employees skills and the skills needed to perform the job will vary, as will the amount of time needed to close the gap. However, once that gap has been closed, the staffing function is still not complete. Over time employees will need new knowledge and skills as job responsibilities, products, technologies, and customer needs change. Fig.: The Role of Training and Development in Fighting the Obsolescence of Human Resource

Knowledge and Skill Level

Level Required for Effective Performance

Employees Actual Level Employee Training 36 Employee Development

Employees Tenure with the Firm This ongoing process of the employee development is crucial to the retail firms ability to compete. A firm that fails to design and implement an employee development program will soon face employees obsolescencethe outdating of employees knowledge and skills to the point where employees can no longer perform effectively. A series of activities are needed to keep employees current. The ideal situation occurs when new hires get all skills they need through employee training and then receive enough employee development to minimize the gap between their skills and the requirements of the job. Employee development program can include books and magazine subscriptions, seminars, short course, college course, and advanced degrees, as well as in-store meetings. Many companies fund part or all of the cost of employee development, but the employee must shoulder part of the responsibility for staying up to date. Increasingly, companies are looking for employees who are true students of the retail industry. As knowledge and technology continue to advance rapidly, fighting employee obsolescence will require diligence on the part of both employee and employer. While it is essential to have a training philosophy, policy and standards, it is impossible to judge whether our training is in accordance with these if there is no clear definition of training. For example, a company might have a target to give each of its employees five days of training every year. Depending on what is considered to be training, one company might say it is providing three days of training and another company might claim nine days- even though both companies employees have received exactly the same amount of training and development. An amazing number of activities might be considered as training. The following is just a selection:

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Classroom (trainer led), Distance learning, Computer-based training, On-the-job training, External courses, Large-scale workshops, Attendance at seminars, Attending conferences, Attending communications meetings, Evening classes, Further education, Assignments, Participating in quality circles, Reading articles and books.

Some of the above activities, such as classroom training and computerbased training, would always be considered as training. Activities such as exhibitions, conferences, assignments and reading would not usually be classified as training. Clearly on-the-job training should be considered as training, but surely not all of the time spent under supervision should qualify for the employees hours of training. The conclusion we came to was that the time spent on producing usable output should not be included in the training time. In Europe and the United States, participating in quality circles would probably not be considered to be training because the prime purpose of a quality circle is thought to be solving the companys problems. Any learning that comes about would be though to be secondary. In fact, this is another

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indication of how Western culture misunderstood Japans quality revolution, because one of Japans main aims in starting quality circle activities was to enable the factory workers to study together and teach themselves quality control. Without a definition of training, deciding whether an activity should be recognised as training becomes very subjective. The working definition of training that I use is: Training is the transfer of defined and measurable knowledge or skills/ From this definition it can be seen that training activities should have objectives and a method for checking whether these objectives have been met. Training, defined in this way, deals only with changes in behaviour and knowledge. Some definitions include changes of attitude as part of training. I have not included attitude change within the definition because, apart from being incredibly difficult to measure, it is the environment and culture of a important part to play in this, an can help create the environment in which attitudes can change, but training alone will not change anybodys long-term attitude. Many different attempts have been made to define what constitutes a training activity, and these all vary depending on the definition of training that is used. Having agreement on a definition of training is more important than which of the many good definitions you decides to use. This allows you to be aligned within your own company, and to make sensible comparisons with other companies. If you have not already done so, this would probably be a good time to consider which activities in your company should be considered as training. Training activities are those activities which are paid for by employers and take place in accordance with a programme which: Has pre-determines objective,

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Specifies the teaching methods, Specifies the personnel to be used, Has an implementation plan, Assess the results, Is given in premises separate from the production area unless it includes practical training.

Can include correspondence courses, safety and security training and training outside of work hours.

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Managing the Training Process Identify needs Evaluate needs Select courses Determine workload Select courses

Select trainers

Select trainers Identify location and resources Finalize budget Finalize training plan

Select trainers

Pre-course admin Prepare course Deliver Course Validate training Post-course admin Transfer learning Evaluate training Revise course

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Training as part of the Business A useful approach for understanding the training process is to consider it as a system whose boundaries interact with the rest of the business. Training needs are identified, training is provided to meet the needs, the output is compared to the requirements and any necessary changes are made to the system to obtain the desired output. While this approach helps you understand how training processes operate, it does put training at the centre of the universe. The effect of this trainingcentred approach is that the business will see training either as a panacea for all problems or as having no direct relevance to the business. Neither of these impressions will help you manager the training process effectively.

Needs

Training

Skills and knowl edge

Training as a system whose boundaries interact with the business A learning organisation is one which facilitates the learning of all its members and continuously transforms itself to achieve superior competitive performance. Figure shows a system that is displaying single-loop learning. The output of the system is compared to a set of standards and adjustments are made to counterbalance any deviations from the standards. More advanced learning organisation would have progressed to double-loop learning where the standards themselves are challenged.

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THE BUSINESS

Training Customer Requirements Assessment

Busine ss strateg y

Actions

Training as part of the business system The concept of the learning organisation does not replace training. As you can see from figure, training is a vital component of learning. It is important not to overlook this fact, as there have been examples of organisation that they have, to their cost, overlooked the basic of training.

Organizational learning Business Process Organisation Development Experience

Individual learning Training Education

Training as part of the learning organisation

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Training Strategies The training process is a cycle that you need to manager continuously. You respond to needs. You ensure that the training is aligned with the business. The cycle time is short term-usually no longer than a year. Managing the training process is essentially operational or tactical. If we always manage training at this level we are in danger of being reactive rather than proactive: starting and stopping training programmes or perhaps even failing to deliver anything. We need to have a clear idea of how we are going to deliver training over a longer period. Training needs analysis and training policies provide the what and the how much. A training strategy provides the long-term orientation. To put a training strategy together you should have a vision of what training in your organisation should look like in, say, five years. You should then map out the years and the key milestones along the way. When you are putting a training strategy together you should ask yourself the following questions: How much training will you need to do each year? What type of course will you need to provide? What types of people will you put on what type of course? What resources will you need in terms of space and trainers? Who will you use to do your training? Will you use fill-time, part-time or consultant trainers? What delivery methods will you use? How will changes in technology affect delivery methods? What business, social and environmental changes are likely to take place?

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Every time you cycle through the training process you should re-examine your training strategy to see if it still holds up in the light of new training requirements and corporate policies. This is an example of double-loop learning. Try to make your strategy as robust as possible, and only change strategies when there are significant business, social and environmental changes. If your strategy is really robust you will find that you can respond to many changes by adjusting your tactics rather than throwing aways your strategy. It is difficult but essential to find the right balance between constantly chopping and changing strategies, and sticking with a useless and outmoded strategy. Here I will be covering two steps of the training process: identify needs, Evaluate needs.

Identifying training needs is the starting point for managing the training process. Yet this is often one of the last steps to be considered seriously probably because a proper needs analysis is both difficult and time consuming. Initially, it might be quicker and easier to forget about analyzing the needs and have your customers pick and choose from a catalogue, but this will ultimately lead to frustration and inefficiency. Identifying training needs is not just a matter of finding the need and them simply satisfying it. There are often conflicting requirements from different interests within the company. The development needs of the individual have to organisation. These needs, once identified, have to be matched to appropriate training courses. Sometimes there is a feeling that training will always be the solution for every identified development problem. However, there is not point in providing training if training is not an appropriate solution. When this is the

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case the training manager has to be brave enough to say that it is not appropriate and creative enough to suggest alternative solutions.

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NEEDS IDENTIFICATION Needs identification has to balance corporate demands, policies and strategies as well as individual and organisational requirements. Figure outlines a process that balances these requirements. It shows that corporate policies and strategies should be the umbrella under which individual and organisational training needs are identified. This helps to ensure alignment of training activities with the business direction. Collect corporate policies and strategies Corporate policies and strategies form the boundaries within which all training and development activities should take place. There are two ways in which corporate policies and strategies give rise to training needs. The first is directly through mandatory training. The other way is through indirect influence. When an organisation outs its training plan together it should take account of both the business plan and individual development needs. This is where the process often breaks down and even the indirect influences start to disappear. Policy deployment which is a structured method of Cascading corporate goals and strategies through the company is a powerful method of ensuring that training needs are identified within the context of the company s business goals We discussed the importance of alignment and of getting the corporate basic right. If this has been done well, you will have no difficulty in collecting corporate policies and strategies. You will then be able to prepare a training plan that supports the direction of the business.

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If your company is confused about its strategies, or does not communicate them effectively, you might as well as miss this step out completely and be resigned to providing training that cannot completely support the business.
Collect corporate policies and strategies

Identify business needs Identify individual needs

(appraisals, requests, counseling)

Identify departmental needs and skills for each job

Identify mandatory training

Identify affected individuals Enter potential needs on training records Produce training requirement reports

Start by reading your companys policies on training and development, reviewing the companys vision and understanding the current goals and objectives. Identify mandatory training Company policy dictates which employee groups are required to undergo prescribed courses. Some courses, such as induction training and total quality management, are an integral part of companys culture so all new employees have to attend this training. Company strategy may also require all personnel to go through specified forms of training in a relatively short period. Examples of this kind of training are: equal opportunities, empowerment, harassment, 48

financial responsibility, new measurement systems (e.g. economic value added), New legal requirements.

Compulsory courses will usually be aligned with the company direction because they have been developed centrally for company-wide implementation. Identify business needs Policy deployment and the training forum are two essential tools for identifying business needs. Policy deployment and the training forums role in defining the basics of the training process are both covered. Policy deployment is the process by which a companys strategies are communicated to its organisations. An organisation then determines what it need to achieve by understanding its part in the company' strategy. The what should be measurable and take the form of goals or objectives. Once an organisation has determined what it has to achieve, it then has to decide how these objective will be met. Once the how has been identified it is possible to determine the skills and knowledge the organisation will require. The training forums role at this stage of the process is to: provide a forum for identifying an organisations business

needs, ensure that training plans are aligned with the companys

direction, Identifying opportunities for sharing or exchanging resources.

The training forum comprises training managers and other interested parties who meet to discuss training plans. They also identify opportunities for sharing resources. A forum is particularly useful when there are several, dispersed training departments within a company.

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The forum would normally need to meet twice a year: the first time to understand both corporate requirements and local issues; the second meeting to review draft training plans. Figure shows typical timings for the two training forum meetings. MAY
Overall Requirements Departmental Requirement s

JULY/AUGUST
Departmental training plans prepared

OCTOBER

Forum Meeting (Preplanning)

Forum Meeting (Plan review)

Training plan prepared

Schedule for training forum meetings Timing of these forum meetings is critical and depends on which month is the start of the organisations financial year. The output of the second meeting needs to be available for inclusion in the annual business plan. Individual development plans should be completed before the draft department training plans are put together. The training plans will be based on guesswork if the development plans are not available. If the development plans are available too early, the training plan could be out of time by up to six months. Identify individual needs Identifying training needs via business requirements is a top-down approach which satisfies the need for training to be in alignment with the business direction. If we were only to use this approach, the coverage would be too broad to pick up individual development requirement. We also need to consider bottom-up training requests and to make sure that both sources of training requirements complement each other. Individual training requirements come either from direct requests or as a result of appraisal discussions.

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Because these development plans are always up to date, the training needs analysis can be done at any time of the year. The training administrator can request copies of the current development plan when the needs analysis has to be done. Identify departmental needs So far we have seen how training departments can be aligned with each other and with the corporate business direction. We have also seen how individual development requirements can be identified. We now need to see how the detailed departmental training needs are identified. The processes already described should ensure that the department's raining demands are based on corporate or company business needs and requirements. The individuals requirements give us a picture of the demand within a department but not necessarily the need. in fact, the process for identifying departmental needs is very similar to the process for identifying need at the corporate level. Each department should assess where it is. The department should have a vision, a mission and a strategy for realizing the vision. Identify skills and training required for each job The department's mission, and the work processes the company uses, determine the jobs the department needs to produce its products and services. Each job has an associated set of skills. New jobs required new skills. In its simplest form, identifying the training required for each job involves: 1. Identifying the skills required to do a job. 2. Comparing the required skills to the current skills level of the people who will be doing the job. It is training's function to bridge the gap between current and required skills. The skills and knowledge required for every job should be documented. You should also document the courses that a representative person will need to

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reach the required skills level. This makes it easier to select the correct courses. A representative person is the type of person you would normally employ to do the job. The basis of identifying and documenting the required skills is the 'job description'. a job description should include the tasks that have to be performed and the outputs that have to be produced by the job holder. Outputs are products or services that ate handed on to someone else. An output should have a standard or specification attached to it so that the quality of the output can be measured. The next step is to prepare a 'person specification' from the job description. A person specification describes the ideal person to fill the job. It is a profile of the required personal skills and characteristics. These skills and characteristics are also known as competencies. For job descriptions which cover a large number of employees it is worth producing a 'training specification matrix'. This matrix describes the training courses that correlate to the skills described in the person specification. You shouldn't be surprised if all this sounds rather familiar. It is exactly the same as the recruitment processes the only difference being that we are developing existing people to fit the person specification rather than recruiting the 'ideal' person. If you are recruiting to fill a vacancy, you may not be able to find anybody who fits the person description. You might also want to give people who do not yet meet the person specification a chance to work at a higher level. In such cases you will need to provide additional training to bring these people to the required level. Identify affected individuals Arising out of your analysis of corporate policies, mandatory training, business needs and job skills requirements, you will be able to identify which groups of employees will need what training. For example, all new managers

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will need training on the basics of management, and all electronics assembly people will need training on electrostatic protection. Effective training processes need to be managed at the level of the individual, so the next step is to identify those individuals who are part of the group which needs the training. This task is make a great deal simpler by computerized personnel and training records. If each person's job is given a job code, the computer can print out a report on the people who have a particular type of job and have yet to receive the required training. This task if make even easier if the personnel and training records are part of the same database. If you have separate records, you will need to update the training database every time someone joins, leaves or changes jobs. Enter potential needs on training records A training record should not only list the courses a person has attended but also the training a person needs. It is easier to prepare a training plan if the record gives a range of dates for when the training is required. The potential need can be in the form of either a course or a skill. It is important that the training record is a live reflection of current training requirements. It should be revised any time a new training requirement is identified. This can be after appraisal, when a training request form is received or after an individual has attended an assessment centre. This means that an up-to-date training plan can be pulled off the system at any time of the year. Produce training requirement reports A training record shows the training that individuals have completed and the training that they need to do. The next step is to sift through all the training requirements so you can evaluate the needs and estimate the amount of training that needs to be done. This can be done manfully, but it is much quicker if you have computerized training records. A computer can produce training requirement reports that list: All the people who have requested a particular course, 53

All the people who need a particular skill, The amount and type of training requested by a particular organization.

Needs evaluation All training requests need to be validated to ensure the training is both appropriate and necessary. The amount of effort and time required to validate the training requirements depends on the quality of the input received. The best time to evaluate training needs is when the needs are being identified. This is why it is worth spending the time to run development open days and to train managers in development needs analysis. In an ideal situation the training administrators should only need to perform a quick request. FIG:- PROCESS OF EVALUATING TRAINING NEEDS Check individuals have not previously been trained

Check that training is an appropriate solution

Check queries with managers

Find alternative to training

Prepare draft training plan

Estimate impact of training load

Discuss draft plan with organization heads and human resource managers

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Counseling Counseling is a critical skill for managers and it is especially important when training needs are being identified. The steps in the counseling process are: 1. Set climate. 2. Set expectations. 3. Seek counselees views of strengths and weaknesses. 4. Agree a development plan. 5. Summarize. Although the process there describes a training manager counseling a trainer, the techniques are just as applicable to appraisal and development discussions. Prepare a draft training Plan When you have validated the training requirements you are in a position to put a draft training plan together. This should include estimates of: The number of trainer-days you think you will have to provide, The spread of the training load over the year. The cost of the training The number of days of training per employee.

Estimate impact of training load Take the draft training plan and consider its impact from two perspectives: 1. The impact on the training department, 2. The impact on the organization. The impact on the training department is really a question of whether it has the capability, space, budge and resources to meet the demand. If it does not have the capability to deliver the demand, now is the time to signal that you may need more resources.

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The impact on the organization is a little more subtle. Try asking yourself the following questions to help you understand the impact: What do the estimated hours of training per person mean in terms of people being away from the workplace? What are the expected short-term penalties, in increased production times and costs, compared with the long term benefits? How many people can you afford to have absent from one department at the same time? What other claims are there on the budget you need to deliver the training plan? Discuss draft plan with organization heads and human resource managers Considering the impact of the training puts you in a good position for discussing the draft plan with senior management, departmental managers and human resource managers. The purpose of this step is to get buy-in' from the stakeholders before you go public with the final plan. It is far better to deal with 'fatal flaws' and objections at this stage than later on in the training cycle. You can discuss what the demand and training load mean to avoid nasty surprises later in the year. You can get agreement to the proposed budget. you can discuss issues. You can discuss whether all the requested training is appropriate.

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OBJECTIVE OF THE STUDY

The objective of my study is to examine the training and development process being followed by HDFC Bank. To identify functional skill areas of personnel, for more effective contribution to the organization. To provide platforms for professional growth and exploration leading to overall improved organizational health and quality of life. To develop human resources in consonance with broader corporate horizon and long-range vision of the organization. To study the various Training & Development activities undertaken by HDFC Bank. To study the Training methodology adopted by HDFC Bank. To study the effectiveness of Training provided by HDFC Bank.

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PURPOSE OF THE STUDY

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

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

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SCOPE OF THE STUDY

Training and Development is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format. Traditional Approach Most of the organizations before never used to believe in training. They were holding the traditional view that managers are born and not made. There were also some views that training is a very costly affair and not worth. Organizations used to believe more in executive pinching. But now the scenario seems to be changing. The modern approach of training and development is that Indian Organizations have realized the importance of corporate training. Training is now considered as more of retention tool than a cost. The training system in Indian Industry has been changed to create a smarter workforce and yield the best results The Training & Development programmes usually provided valuable inputs to the trainees for performing present as well as future roles effectively. So, the project is beneficial for the HDFC Bank to improve for the betterment of the organization as well as the industry.

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RESERCH METHODOLOGY
The information required for this project study is collected both through the primary as well as secondary source of data. Tools for Data Collection Primary sources of data Questionnaire Questionnaire method for primary data collection is being used to collect information that is relevant for the objectives of the study. The questionnaire is mix of both open as well as close-ended questions and questionnaire consist of 9 questions. Basis of Questionnaire The questionnaire is made on the basis of the following parameters. These are: Quantity: It includes questions, which voice employees concerns regarding the number of training hours spent by them. Quality: Quality implies the kind of training that is imparted to the employees, how it is done and what kinds of feedback methods are given. Importance to Training: This includes questions from which we get to know whether the emphasis on training is laid down by the departmental heads, training managers, HR Head or the employees. Effectiveness and Efficiency of Training: This includes questions related to whether the training imparted to employees in different departments is effective and efficient. Interview

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In depth interview with the employees who are unable to work on the questionnaire and the training manager will be conducted in order to know about the training practices being followed at the HDFC Bank. Sample Size 30 Employees of HDFC Bank Data Analyis - Statistical Tools to be used i) Pie charts & Bar Charts ii) Histograms Secondary Sources of Data A mixture of books, journals, case studies, handouts and Webster will be used to gain a clear understanding of the objectives of the project study. Limitations Time is the biggest constraint as many times it is not be possible to meet HR Managers and staff members to collect such information. There may be biases on the part of the Managers and Staff while providing the information. This is not directly affect the study but it has some impact on the conclusions. The data collected may not be up to mark as related to the present market situation. The situation is handled with care to a large extent but there can be some mistakes on my part. Some of the respondents were not willing to provide information on their organisation. All efforts are made to get all the relevant information's required for this study and presented in this project.

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TRAINING & DEVELOPMENT AT HDFC BANK

Training and Development at HDFC Bank is classified for two categories of employees: New Recruits and Others. Currently, the Training and Development process is evolving and undergoing many changes. This document provides the current process, as it exists as well as the new process as the Corporate Training and Development group envisage it. Process As Exists Today It Future Requirement Different System if should provide Linkage from Recr. Module Introduction routing to be provided by the system Recording of Induction programmes and attendees Recording of Training Details for each attendee Drawing up Introduction list from recruitment module Recording of Introduction and attendees Recording of Training Details for each attendee HDFC Bank Give to

I. New Recruits: New recruits go -samethrough an Induction programme

Sample Programme schedule Position chart Recording Format Recording Format

Classroom Training -sameexists for groups joining simultaneously (e.g. In Mkt. Currently)

Recording Format Recording Format

II. Other Employees: Training Needs Analysis There are two kinds of training needs that get generated for all employees 62

Sample Training Needs Sample

Those that arise from the Appraisal (Appraisal Trng. needs) (Detailed after next bullet) Those that arise from Business Needs (Business Trng. Needs) Only in Marketing at present. Needs analysed jointly by Corp. Trng. Group and Marketing

Training Needs

Appraisal Format ISO System to Formats provide data Appraisal Training from previous Needs Analysis cycle training The appraiser at the The appraiser need identified end of the appraisal should complete and training session, completes programmes the Identification of attended, Training Needs form. HoD collects and The ISO form, Action plan sends these forms which could generated, to Corp. HR replace the completed and Corp. HR copies Identification of rated each form onto an Training Needs ISO format and Form sends it back to the appraiser for signatures Format for Appraiser sends it -samecollation back to Corp. HR Automatic Format for duly signed -samecollation needs deciding on Corp. HR collates and planning batches and sorts the out of training (e.g. Not training needs. batches for more than each subjects x number from a location, grouped by grades/loca tions etc.) Calendar format Nomination To be done by Nomination list Nomination HR decides on HoD, based on to be generated format 63

nomination of employees across the company for Training Programmes, based on training needs generated in the appraisal. HR sends the nominees names to respective HoDs and letters to nominees Training Session Training programme Held Feedback from Trainee obtained Action plan follow through after 3 months Following records updated: Training Record Training Card

training calendar and list of persons with similar needs, both to be provided by HR HR to send nomination letters, addressed to employee, to handed over the HoD. -same-same-same-same-same-same-samethe the be by

by system highlighting training completed against budget, past year training data. Sample System to Letter generate letter

Complication of feedback Average feedback scores of faculty, faculty record updation system trigger and mails to be sent out Snapshot history to be stored??

Feedback format Action plant format Action plan follow through format

Generation of Number of System Training Reports training days generate Does not exist at attended by reports present given employee against given budget: Of 2 days per employee in plants 7 days per employee in Mkt. 2 days per employee in Corp. 64

Training record format Training Card format to Report all format to be provided

Number of training days completed by give unit/location/dep artment/group against budget. Number of training days completed by company as a whole against budget. Parallel Processes -same1. Vendor Selection The vendor for -sametraining programes can be either a company or a faculty member. In case of a -samecompany, the Concerned faculty members profile is sought In all cases faculty -sameis first given a pilot programme If average rating in Faculty card and feedback sheet is faculty record to 4.2 or avove for be created, normal programmes similar to (or3.5 for Training card confrontational, lab and training type programmes), record. faculty is finalised. Parallel Process -sane2. Internal Faculty (Trainer) Selection There is a Train the -sameTrainer programme which results in a certification process at the end, for all internal faculty

System to Profile crosscheck format Profile against template??

Initiate and 2 Formats maintain company and faculty record

Maintain Certificatio records of n format internal trainers and prompt/suggest names while compiling programme batches

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GOALS OF HRD SYSTEM AT HDFC BANK To create on enabling climate that continuously identity, nurtures and utilize the capabilities of employees. To develop the capacity of each employee as an individual To develop the capacity of each employee in relation his/her present job/role. To develop the capacity of each employee in his/ her expected future job/role To develop a mutually supporting relationship between each employee and his/her supervision. To develop team spirit and effective functioning of every subsystem of the organization. To develop overall health and self-reasoning capabilities in the organization. The goals of HRD system at HDFC Bank are realized through various sub systems practiced on the company. They are as follows: Performance appraisal Suggestion scheme Training Awards Grievance procedure for the employees Incentive and reward scheme Employee participation Communication policies Socio cultural activities

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Employee welfare and quality of work life

TRAINING AND DEVELOPMENT Keeping in view the principle of Right person for the management position, HDFC Bank takes adequate care while selecting the employee. Merit is always recognized and given weightage. To meet the demands of competition, high premium is attached to training activities. TRAINING OBJECTIVES High premium is placed on training and development activities in the organization keeping in view the following objectives To achieve systematic integration of training in the organizations mission. To upgrade skills, abilities and capabilities of the employees. To establish a distinctive work culture in the organization. To meet the organizations need for success, better performance and growth. To prepare employees the job meant for them while on first application, on transfer or on promotion and impact to them, the required skills and knowledge. To assist the employees to function more effectively in their present positions by exposing them to the latest concepts, information, techniques and developing the skills that would be required in the particular fields. HDFC Bank is relentlessly trying to materialize these objectives to the fullest extent TRAINING SET UP Main thrust areas of training

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Management training in house External programs Overseas programs Training of trainees Pre employee training scheme Apprentrenship training Vocation training coming from other institutions Other training programs

TRAINING POLICY Formulation of training policy. TRAINING AND DEVELOPMENT FUNCTION Responsibility of Training and development.

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DATA ANALYSIS AND INTERPRETATIONS

Q.1. WORK EXPERIENCE AT HDFC BANK

12 10 8 6 4 2 0 Less than 5 years 6-7 Years More than 7 years Senior Manager and above Senior officer to Assistant Manager

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Q.2. DESIGNATION 30 25 No. of employees 20 15 10 5 0 Senior managerand above Senior officer to assistant manager

Designation

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Q.3. EDUCATION QUALIFICATION

12 10 8 6 4 2 0 Less than 5 years 6-7 Years More than 7 years Senior Manager and above Senior officer to Assistant Manager

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Q.4. AGE GROUP 14 12 10 8 6 4 2 0 Less than 25 26-34 Years years 35-45 Years Morethan 45 Years

Senior officer to Assistant Manager

Senior Manager and above

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Q.5. PURPOSE OF TRAINING Rank Senior officer to assistant manager Upgradation of abilities Preparing for promotions Preparing assignments position Training in allied fields Preparing for transfers Develop specific abilities/ 2 2 for in future same 1 3 Senior manager and above 1 3

competence It is seen from the analysis that both the levels of employees think that upgradation of training and training for allied fields is the least important. While senior officers to assistant managers feel that preparing for transfers is the second most important purpose of training senior managers and above feel that developing specific abilities/ competencies is the second most important purpose of training so a difference in perception exists here.

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Q.6. IDENTIFICATION OF TRAINING NEEDS PERFORMANCE APPRAISAL Senior Mgr. and above 25.5%

DISCUSSION WITH SUPERIORS

Senior officer to Asstt. Mgr. 74.5%

Senior Mgr. and above 35.3%

Senior officer to Asstt. Mgr. 64.7%

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TRAINING DEPARTMENT

Senior officer to Asstt. Mgr. 40%

Senior Mgr. and above 60% 73.68% of senior officers to assistant managers felt that training needs are identified through performance appraisal whereas only 2.6.31% of senior managers and above felt the same. 66.63% of senior officers to assistant managers felt that discussion with superiors is a method of identifying training needs whereas 36.36% of senior managers and above felt the same. 40% of senior officer to assistant managers felt that training needs are identified by the training department and 60% of senior managers and above felt the same. Hence a significant difference in perception exists between the two levels when it comes to identifying training needs. The analysis also shows that none of the employees at both such felt that after job rotation was a means of identifying training needs.

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Q.7 TRAINING PROGRAMMES ATTENDED The employees were asked to list any 3-training programme they had attended in the last two years. Most of the senior managers and above remembered attending the Team Building Exercise by Mr. Santosh Babu at Ranibhaet and Dr. Atrayas Workshop. A majority of the senior officers to assistant managers had not attended a single training progrmame. The few that had attended had undergone a Computer Training Programme. As compared to this, there were only handfuls of senior managers and above who had not attended a single training programme. Some of the other training programmes attended by them were Train the Trainees and Project Management at IIM Ahmedabad A few training programmes attended by Senior Officers to Assistant Managers were Project Management at IIM Ahmedabad and MDP by Dr. Srivastava.

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Q.8 MAN DAYS OF TRAINING 35% of the employees had attended upto 5 man days of training. Out of this 71.5% were senior managers and above and 28.5% were senior offices to assistant managers. 25% of the employees had attended 5-10 man days of training. Out of this 60% were senior managers and above and 40% were senior officers to assistant managers 20% of the of the employees had attended more than 10 man days of training. Out of this 62.5% were senior managers and above and 37.5% were senior officers to assistant managers. 20% of the employees had not attended a single man-day of training. Out of this 75% were senior officers to assistant managers and 25% were senior managers and above.

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Q.9 HOW HAS THE TRAINING PROVIDED HELPED YOU? 53.8% of senior officer to assistant managers felt that the training they received helped them to improve their work performance and 57.1% of senior managers and above felt the same. 19.2% of senior officers to assistant managers felt that the training they received helped them for future growth and 21.4% of senior managers and above felt the same. 26.9% of senior officer to assistant managers felt that the training did not help them at all and 21.4% of senior managers and above felt the same. From this analysis, it can be seen work performance. that both the levels felt that the

training provided to them has helped them mainly in improving their

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RECOMMENDATION
1. Training should be given according to the job profile of the employees. e.g. Managers should be made to attend more of team oriented workshops since they are required to work in teams. Whereas an officer level employee needs to enhance his computer skills. Hence training programmes have to be designed accordingly. 2. Since a few employees felt that the training they had undergone in the last two years didnt help them at all, a feedback session should be made mandatory after every training session, in order to ascertain whether the above idea behind the training programme had been accomplished or not. 3. Every now and then the employees should be encouraged to identify their own training needs which would enhance employee morale and also shift the burden from the superior to the employee him self. 4. Rather than just investing money on various training

programmes, HDFC Bank should also concentrate on regular training evaluation.

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CONCLUSION
Making the process of identification of training needs and evaluation of training more effective will enhance the effects of training to the banks in general and employees in particular. Whether it is training needs identification evaluation or any other aspects in training, it requires active support, cooperation and participation of the functionaries at various levels of the bank including trainees. One of the best ways to identify the training needs of the employees is to understand the gap existing in the skills of the employees and introduce the training programmes to fill these gaps. Needs of the bank should take in to account expansion of the markets, introduction of new products and services, mergers and acquisition, novel techniques of marketing and customer service and many more. As no single evaluation technique is foolproof, banks could imbibe the evaluation of training programmes depending upon their availability of resources and areas of business. If the banks use these two important formulae, namely, training needs identification and training evaluation productively and creatively then the banks have the reason to feel confident of it and they have a factual corroborative to answer management regarding the positive results produced by employee training and development.

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SCOPE OF FURTHER RESEARCH

The training needs analysis is the base for all training activities in HDFC Bank Efforts at all levels of the organisation are made to identify and meet the training needs of the employees. Priority is given to need base training which can have direct impact on the employees performance and improve work efficiency. The training and development department takes into consideration the annual appraisal report of the employees for analyzing the training needs. The training programmes usually provided valuable inputs to the trainees for performing present as well as future roles effectively. Also, at the end of each training session trainers impressions about the session should be recorded in a register, which gives a weight into the trainees performance during the training period. The timely feedback of both the trainers and the trainees helps in taking corrective action for future training programmes. This analysis has depicted what common training and a

development technique are adopted by from and has provided an insight into the training and development system followed by HDFC Bank. But still much more can be done. Suitable strategies can be framed to develop a team of highly motivated and committed work force so that the company can make inroads into the international markets and build a favourable image there. The quest for improvement should never end as it is an endless journey.

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BIBLIOGRAPHY
Books V. S. P. Rao, Human Resource Management. Rolf Lynton & Uday Parekh, Training Strategy. Martyn & Solemn, Training Strategy. Francis & Bee Roland, Training Needs Analysis and Evaluation, University Press. Valarie A. Zeithamal & Mary Jo Bitner, Services Marketing Integrating Customer Focus Across the Firm. Tata McGraw- Hill Edition. Websites www.bluestar.com www.goole.com www.altavista.com

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ANNEXURES

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PERSONNEL POLICIES OF HDFC BANK

Originated personnel Policies: These policies are established formally and deliberately by top management. Senior executives initiate such policies to guide their subordinates. Scope or Coverage of personnel policies Policies are established regarding various functions of personnel

management which are as follows: 1. Employment. All policies concerning recruitment, selection, and

separation of employees are included in this function. Employment policies should provide clear guidelines on the following points: (a) (b) Minimum hiring qualifications Preferred sources of recruitment of seats for scheduled castes, scheduled tribes,

(c) Reservation

handicapped persons and ex-servicemen. (d) (e) Employment of local people and relations of existing staff HDFC Bank on various selection devices such as university degrees tests interviews, reference checks, physical examination, etc. (f) Basic (length of service or efficiency) to be followed in discharging an employee (g) (h) Probation period Layoff and rehiring

2. Training and Development (a) Attitude towards training-whether it is regarded as a device to overcome specific problems or as a continuing relationship between superior and subordinate. (b) Objectives of training

(c) Opportunities for career development

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(d) (e)

Basis of training Methods of training-on the job or off the job.

(f) Programmes of executive development (g) Orientation of new employees.

3. Transfers and promotions (a) (b) Rationale of transfer Periodicity of transfer

(c) Promotion from within or outside the organization (d) (e) Seniority required for promotion Relative weight age to seniority and merit in promotion./

(f) Seniority rights (g) Channels of promotion

4. Compensation (a) (b) Job evaluation system Minimum wages and salaries

(c) Method of wage payment (d) (e) Profit sharing and incentive plans Non monetary rewards

(f) Executive stock option plan (g) (h) Procedure for getting pay Whether to pay prevailing or more than prevailing salary scales.

5. Working conditions (a) (b) working hours Number and duration of rest intervals

(c) Overtime work

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(d) (e)

Shift work Safety rules and regulations

(f) Leave rules 6. Employee services and welfare (a) Type of services-housing, transportation, medical facilities, education of children, group insurance, credit facilities, purchase of company's products at discount, company stores, social security, etc. (b) Financing of employee services

(c) Incentives of motivate 7. Industrial Relations (a) (b) Handling of grievances. Recognition of trade union

(c) Suggestions schemes (d) (e) Discipline and conduct rules Workers' participation in management

(f) Employees' news sheet and house journals

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SAMPLE QUESTIONNAIRE
Q.1. How many years are you working with HDFC Bank? Less than 5 years 6-7 year More than 7 years Q.2. What is your Designation at HDFC Bank? Senior Manager and above Senior Officer to Assistant Manager Q.3. What is your education qualification? Engineering / Post Graduate (Engg./PG) Management Graduate (Mft. Grad) Chartered Accountant / ICWA (CA/ICWA)

If Others, Please Specify____________________________ Q.4. Please tick which Age Group are you from? Less than 25 years 26-34 years 35-45 years More than 45 years Q.5. What is the purpose of training at HDFC Bank? Rank Senior officer to Senior assistant manager manager and above Upgradation of abilities Preparing for promotions Preparing for future assignments in same position Training in allied fields Preparing for transfers Develop specific abilities/

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competence Q.6. IDENTIFICATION OF TRAINING NEEDS Performance Appraisal Senior Manager and above Senior Officer to Assistant Manager Discussion with Superiors Senior Manager and above Senior Officer to Assistant Manager Training Department Senior Manager and above Senior Officer to Assistant Manager

Q.7 How many of them attended Training Programmes at HDFC Bank? _______________________________________________________ Q.8 How many of them attended Man Days of Training at HDFC Bank? _______________________________________________________ Q.9 How has the training provided help to you at HDFC Bank? _______________________________________________________ Thank You

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