A STUDY ON TRAINING & DEVELOPMANT SCENARIO IN INDIAN INDUSTRY Preface

With the changing time and even fast changing technologies Indian companies have started realizing the importance of corporate training. As the companies are setting up their branches all over the world, becoming multinational corporations they need trained employees who can raise the profits. Today, training is considered as a tool for employee retention. The cost incurred on training an individual in a company is recovered if the employee improves his skills after the training is imparted and the productivity is raised. Training has now become important in every field be it Sales, Marketing, Human Resource, Logistics, Engineering, Production and Manufacturing, Inventory Management etc. Indian companies fulfill their requirement of skilled workforce by providing on-the-job trainings and other internal educational programs which are designed to quickly improve the expertise of new recruits especially in the high-tech industry. According to NASSCOM there is a tremendous rise in the IT corporate training market which is expected to reach Rs. 600 crore in 2010 from Rs. 210 crore (Training Scenario in Indian Industry, www.naukrihub.com ).

Fig 1. (Source: Training Scenario in Indian Industry, www.naukrihub.com)

This article mainly focuses some emerging sectors in Indian industries, including IT, BPO, Pharmaceutical, and Retail, Banking and Insurance, Hospitality, KPO, Automobile, Telecom . According to the findings of the study, all sectors have grown quickly in spite of major roadblocks which are termed as skills shortfalls and talent shortages.

Growth Potential for Training and Development in India

Till the sixties training activity in most of the Indian Organizations was totally absent or partly present in a rudimentary form. In todays global market training is becoming imperative 24/7/365 affair, cutting across geographies and time restrictions. With the expansion of companies and changing technologies, Indian Organizations have realized the importance of corporate training. Training is considered as more of retention tool than a cost. The changing areas of training and development today:

Computer based training

Grid technology Action Learning

Supervisors skills level Competency based training

Modular approach Outbound training

Walkabout

India suffers due to a huge skill gap in various sectors. It is estimated that more than 75% of the new job opportunities to be created in India will be skill-based. This is primarily due to three reasons: Heterogeneous nature of universities or training institutions, with varying infrastructure, capabilities and facilities, as well as the quality of education and training provided by them. Lack of focus on development of skills pertaining to the specific requirement of the employers.

Non-recognition of the value of skilled workers by employers, particularly in the informal and small enterprise sectors. If this skill gap is plugged, India can become the hub for skilled manpower, with it being capable of building a skilled manpower surplus of approximately 47 million by 2020. Currently, India has significant potential to evolve as the worlds skill center and also meet its domestic demand, which is continuously increasing. In trying to understand how India is achieving this feat, we learned that the Indian private sector has found a way to overcome deficiencies in its education system through innovative programs of workforce training and development. These have transformed workers with a weak educational foundation into R&D specialists.

Changing Scenario for Training and Development Business in India

Faced with severe talent shortages, escalating salaries, and a lagging education system, Indian industry has had to adapt and has built innovative and comprehensive approaches to workforce training and management. The initial focus was on training new recruits and filling entry-level skill gaps. Now, these companies are investing in constantly improving the skills and management abilities of their workers and in providing incentives for them to stay and grow with the company. The Indian companies we studied have become innovative not only in how they recruit but also in whom they recruit and where they look for talent. They rely on training and development to bridge skill gaps. Instead of hiring only from top engineering universities, technology companies recruit from second- and third-tier colleges all across the country and also in arts and science schools. Similarly, companies in the banking and hospitality industries hire from call-centers and the information technology sector. There is also widespread collaboration between industry players and academic institutions to accelerate the growth of needed talent pools. We identified seven key areas in which Indian companies have developed innovative practices: employee recruitment, new employee training, continuing employee development, managerial training and development, performance management and appraisal, workforce retention and education upgrades. New Recruit Boot Camps Companies in India have no choice but to assume that new recruits will have to be trained practically from scratch. They invest substantial time, money, and effort in the training function. Most large companies have built dedicated learning centers that house various training and development programs. The larger companies employ hundreds of training staff. In the technology sector, new-recruit training programs typically span two to four months. In other industries programs range from two to four weeks. The training curricula are generally highly sophisticated and teach not only the required technical skills but also the basics of topics like industry operations, customer management, communications, and team building. Formal induction training is typically followed by on-the-job training programs in which employees are assigned specific tasks under the supervision of trainers and managers. Investing in Their Employees Faced with fierce competition for talent, rising wages, and pressure from a currency gaining significant value, Indian companies have had to invest in making their employees more productive and rapidly moving them up the skill and management ladder. This Employees are typically required to participate in a wide range of training and certification programs, some developed in house and some delivered by external domestic and foreign training vendors. Training programs include not only technical and domain training but also a wide range of soft skills and management skills, including training in sixsigma/quality processes; communication; and cultural, behavioral, foreign-language, and personal-

effectiveness skills. In addition to online courses, many companies have instituted programs of mentorship by senior executives; peer learning and knowledge sharing; and job-rotation programs. Some common methodology includes instructor-Led Classroom, Instructor-Led On-Site, Virtual Classroom, Self-Paced, and Blended. Courses in Game-based learning, Coaching, On-the-job (OTJ) Training, Seminars/Workshops, Simulation Workshops, Computer-based and IT training modules as well as those concerned with soft skills, business skills and networking. Career advancement and salary increases are usually tied to the completion of such training. Mechanisms such as 360-degree reviews and balanced-scorecard reviews are widely used. Managers are evaluated on a variety of non-financial measures, including employee satisfaction, attrition rates, and mentoring. Performance management has been fully integrated with training and development at most companies, using periodic reviews to identify training needs, provide feedback and coaching, and facilitate employees goal setting and career planning. Furthermore, Indian companies appear to have a high level of interaction with the private colleges and universities that supply them with talent. This involves working with these institutions to develop customized degree programs, train the educators, create new curricula, and negotiate deals to hire graduates in bulkwithout job interviews. The Indian experience highlights what can be achieved by investing in upgrading the skills of the workforce. The workforce training has taken the output from the education system as weak as Indias and has turned its graduates into world-class engineers and scientists. Requirements in Corporate and Smes Indian Public Sector has been passing through massive changes due to advancement in science and technology and competition from private sector. PSEs realized the need and importance of training their employees for better and improved results. PSEs are under pressure to improve organizational effectiveness by finding ways to become cost-conscious and resource-efficient (Joshi, 2000). Most of these enterprises are still using labor intensive technology and large-scale as well as long-term cost reductions can be achieved by improving the productivity of employees through effective training and development. Direct recruitment from training institutes and informal networks and local agents also play a role in supply of direct labor in public sectors Although the primary responsibility for fostering education and training in the education system rests with the Government and academia , the corporate and non-government sectors have also realized the need to actively participate in providing training to their current and potential employees. Initiatives of companies

Organizations have realized the need to establish in-house training facilities to bridge the industryacademia disconnect and meet the shortage of higher education infrastructure in the country. Through these facilities, they can not only make potential employees job ready even before they enter organizations, but also provide them with the right skill-sets molded on the basis of practical industry

requirements. Such training practices are prevalent across the manufacturing and service sectors. Some key examples are listed below:
Manufacturing Sector Sector Automotive
India

Company name
Maruti Suzuki

Training initiative
MSIL has tied up with 17 ITIs and has set up a Technical Training Centre (TTC) to cater the training need of employees.

Services Sector Retail ITC

ITC Wills Lifestyle has tied up with professional courses to provide training in retail management. Hyaat Hotels Corporation has its inhouse training initiative School of Hospitality at Grand Hyaat Mumbai.

Hospitality

Grand Hyaat

Information technology Financial Services

Infosys

Infosys global training center is one of the largest corporate training. ICICI Manipal Academy, to train recruited junior managers of the bank in banking and finance.

ICICI Bank

Skill Sets Requirements by Training and Development Industries

With this rapid expansion the focus is more on the skilled employees and the need of human resource development has increased. The companies are looking for skilled and hardworking people who can give their best to the organization. Team & Client management skills are crucial one must have excellent communication & presentable skills along with it flexibility and readiness to continuously improve and update self with latest knowledge on markets and product. Knowledge of various computer applications (PowerPoint, Excel) and therefore the ability to see how training leads to performance, operational efficiency, staff retention with good management skills, analytical skills. Receiving and providing feedback in a positive manner. It is therefore essential that a comprehensive regulatory and delivery framework for skill development in India is formulated and implemented at this stage to divert the positive energies of its people toward innovative and integrated skill development with the aid of outcome-based orientation.

Present Academic Scenario in Training and Development Industry

With the rapid expansion and coming up of major players in various training sector, the focus is more on the skilled employees and the need of human resource development has increased. The companies are looking for skilled and hardworking people who can give their best to the organization. Various companies are opening training institutes to train interested ones in this sector, like Toyota has recently opened Toyota Technical Training Institute (TTTI) near Bangalore. The need of engineering and managerial manpower is met by IIT and IIM. The institute besides developing as a repository of knowledge in the field will also take up market research and analysis within and outside the country. It will also develop training modules and will disseminate them ITIs and ATIs. The adoption of existing training institutes by OEMs would involve education and training on subjects like SQC, TPM, TQM, Six-Sigma, Lean Manufacturing, Breakthrough Management etc. IIT and IIMs would be requested to institute a program me on Manufacturing Management. BSNL alone spends more than 100 crore on training and development of its employees through the Advanced Level Telecommunications Training Centre (ALTTC). Reliance has also established Dhirubhai Ambani Institute of Information and Communication Technology. In addition to that, Bharti has also tied-up with IIT Delhi for the Bharti School of Telecommunication Technology and Management. Hewlett-Packard (HP) has built an alliance with Jadavpur University. Cisco has set up more than 130 Networking Academies in India .NASSCOMs IT Workforce Development program aims to bridge the gap in the demand and supply of knowledge workers by encouraging IndustryAcademia partnerships. NIPER started conducting training programs at newly established SMPIC for Small and Medium Pharmaceuticals industry. According to an article published in Economic Times (November 2004), Management Development Institute (MDI) as a matter of policy has 20% faculty from corporate who has served in top management positions for more than 15-20 years. Case writing, which is one of the most important aspect of B-school research not only adds to current knowledge pool but also enhances the learning experience of students. Similarly, the Management Development Programmes (MDP) is perceived to be among the top five most effective modes. MDP, though quite similar to executive education programmes are short-duration capsule courses, which focus on a particular area or topic. Training and internships are also perceived quite high on their effectiveness in building long term enduring relationship between industry and business schools. Business schools have their own policy and rules on recruitment and selection of students and faculty members. Outsourcing the entire course has been perceived quite low on its effectiveness. Involvement in shaping the curriculum aligns the goals of education with that of industry. Particularly for SMPs, this

exercise would also help reduce the on-the-board technology training costs that form a substantial chunk of the employee development costs. In the short term, all Universities and Engineering Colleges, including those at the State level would be encouraged to formulate a Training Program me, in consultation with the leading industries in their regions of Quality Management and general development for managerial staff.

Recent Developments in Training and Development

According to the annual American Society for Training and Development (ASTD) conference there are several of the trends that have come over a passage of time. If youre not in multimedia or online training, youd better be thinking about it, both the Exposition and the Conference sessions echoed this sentiment. A recent ASTD conference featured less multimedia, but online providers of educational sessions proliferated. Even though the current move in organizations has been to offer training on CDs, Web-based training (WBT) is not far behind. Web Based Training (WBT) This move to online learning has created several sub-conversations. One is Electronic Performance Support Systems (EPSS) that deals with the interface between people and software. Another is creating and offering courses that trainees will actually finish; the dropout rate in self-monitored training is high. In a less positive direction, some providers of traditional training were attempting to move traditional, manual-based courses online. The resultant courses looked like training manuals online and did not tap into the advantages of the Web including interconnectivity and the ability to publish real-time, up-tothe-minute information. Finally, training professionals were discussing how to integrate a real, live instructor and peer interaction with Web-based or CD training. Performance Consulting Human Performance Technology or performance consulting is changing the face of the traditional training department forever. Few training organizations offer trainer-led, generic classes as the only, or even major, solution to organizational challenges and opportunities any more. Emphasis is now placed on providing a range of potential solutions and assists that include in-depth needs assessment via interviews, surveys and focus groups. Alternatives to training offered by progressive human resource departments include coaching, organizational development or planned change consultation and interventions, facilitated planning sessions and large group processes. The training that is provided is often custom-designed with stated outcomes congruent with the direction of the business.

Performance Management Another trend that is sweeping the field of human resources is the integration of training and development into an entire performance management system. Organizations are moving away from the long-established, one-on-one appraisal or performance review with a boss held once per year. They are designing performance management systems, instead, that provide an individual with personal and professional developmental goals and training opportunities. In a performance management system, people receive more frequent feedback from many points of view including peers, direct reporting staff members and the boss. The feedback, known as 360-degree feedback, provides a more balanced set of observations for the employee. The performance management system also integrates a performance development plan for the individual. This plan assists the employee to continue to develop his skills and abilities. For these plans, preference is accorded to integrated corporate university courses and internally custom designed and presented training. Performance development plans may include coursework, but also provide learning activities on the job such as special projects, serving on cross-functional teams, and skill stretching job assignments. Future Technology in Training and Development Mobile Technology (IPODS/ PDAs) Networking Learning Portals Intelligent Tutoring System Instant messaging Conclusions about training trends One training trend is for sure. Traditional classroom training is no longer the exclusive opportunity to learn. The age of training that includes training CDs, email classes, online learning, and blended learning and university degrees online is exploding. These training opportunities are here to stay.

SALARY RANGE MAX MIN SECTORS Retail /FMCG Banking $ Insurance Automobile Telecom KPO Pharmaceutical Hospitality BPO IT/ITES EXPECTED EARNINGS USD 396 billion 1000 Billion US $ US$ 40 billion 1billion US $ 17 billion US $ 17 billion Rs 1.7 million $310 billion Rs 500 crore 4.5 TO 6.5 15 TO 30 13 TO 15 19 TO 25 18 TO 25 10 TO 15 11 TO 15 18 TO 25 10 TO 15 1.5 TO 3.0 2.25 TO 5.5 2 TO 5 1 TO 3 1.5 TO 2.5 2 TO 5 2 TO 6 1.5 TO 2.5 1.5 TO 2.5

A brief summary of the training and development in various sectors and its nearby future outlook.