A Scan of HR Policies Processes of Utkarsh - 8.3.13

A Scan of Credit Policies and Processes of Cashpor Microfinance Pvt Ltd
Draft Report
Submitted to:
Micro-Credit Ratings Int. Ltd 602 JMD Pacific Square, 32nd Milestone NH8 Gurgaon 122001 India
Utkarsh Micro Finance Pvt Ltd S-2/639-56, Varuna Vihar Colony J.P Mehta Road, Varanasi 221002 Uttar Pradesh, India
Submitted by:
Niraj Kumar Independent Microfinance Consultant Gurgaon, India
March 2013
A scan of HR policies and processes of Utkarsh
Table of Contents
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Abbreviations
ALC AM AO BM CEO CM CO CV DM DO HO HoD HR ID IT JLG MD MEL MFI MFIN NBFC PCO PF RM RO Rs RTC RTO SPM SBP TCO TNA TO ToT UP ZM ZO Active Loan Clients Area Manager Area Office Branch Manager Chief Executive Officer Chief Manager Credit Officer Curriculum Vitae Divisional Manager Divisional Office Head Office Head of the Department Human Resource Identity Information Technology Joint Liability Group Managing Director Micro-Enterprise Loan Microfinance Institution Microfinance Institution Network Non-Banking Finance Company Probationary Credit Officer Provident Fund Regional Manager Regional Office Rupees (Indian) Regional Training Centre Regional Training Officer Social Performance Management Strategic Business Plan Trainee Credit Officer Training Need Assessment Training Officer Training of Trainers Uttar Pradesh Zonal Manager Zonal Office
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Executive Summary
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S ECTION 1 I NTRODUCTION
1.1. Background Utkarsh Microfinance Private Limited (Utkarsh) is a young and fast growing Microfinance Institution (MFI) operating in eastern India. The company started its operations as NonBanking Finance Company (NBFC) in September 2009 and is currently operating in four adjoining states of Bihar, Madhya Pradesh, Uttar Pradesh and Uttarakhand through a network of 90 branches. As of 30 November 2012, Utkarsh was serving 161,383 clients through 40,300 joint liability groups (JLGs). Since inception, Utkarsh has shown strong growth, increasing its outstanding loan portfolio from Rs138.8 million as of 30 June 2010 to Rs1,276.9 million as on 30 November 2012. The growth of Utkarsh in last one year on key parameters is presented in Table 1 below: Table 1: Growth of Utkarsh Particulars Active Borrowers Loan Outstanding (Rs million) Number of Staff Number of Branch Number of State Covered As on 30 Nov'11 As on 30 Nov'12 70,543 1,61,383 545.7 1,276.9 349 556 67 90 2 4
Utkarsh is planning to further expand its operations and plans to open additional branches in the current states as well as in state of Chattisgarh in 2013. As part of its expansion plans, Utkarsh also introduced a new loan product Micro-Enterprise Loan (MEL) to target those segments of population without access to financial services that require higher loan amounts. The management realises the importance of a satisfied, committed and capable work force in meeting future growth plans and thus plans to strengthen its in-house Human Resource (HR) Management capacities including various areas like training, appraisal, compensation and promotions and develop a pool of trainers for its sister concern Samutkarsh. It also plans to make Samutkarsh run its operations in a self-sustainable manner by offering its services to Utkarsh and other MFIs on a fee basis. Against the background of the past and future rapid branch expansion, portfolio growth and introduction of the new lending methodology, strengthening of HR capacities through training and on-the-job coaching of staff is crucial. Utkarsh has a HR department which shows strong commitment to develop capacities of its staff. In the light of the planned business expansion, it will require a large number of well-trained and motivated employees at all levels to ensure sustainability of operations and achievement of growth targets. 1.2. Objective, Scope and Outputs Objective: The objective of the assignment is to observe and document end-to-end processes of various HR and Training functions at Utkarsh in order to strengthen institutional and human capacities to ensure sustainable operations and growth in the current and new lending business as well as in the provision of non-financial services.
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Scope: The scope of the assignment is limited to following areas: Recruitment process: - Introduction of the Company to potential candidates and explanation of nature of work, location of work, remuneration, etc. - Written test (process, question paper, procedure, assessment) - Personal interview (panel, interview questions, selection/rejection logic) Training: - Classroom training (procedure, course content, course curriculum, delivery) - Field training (assignment of branch for training, field training and activities visited during field training, hand holding of candidates by CO/BM/AM and others in the field, reassessment) - Branch visit with the training manager to understand his activities/tasks at the branch and impact of these activities/tasks. - Participation in various training programs, i.e., induction training, refresher training (TCO/PCO/CO/BM/AM), promotion training to understand the current training format/curriculum, delivery and assessment of impact of these trainings. - Identification of gaps in the understanding of staff pertaining to various HR policies such as leave policy, incentive policy, fuel policy, etc., and formulation of a suitable strategy to bridge this gap. Other associated functions: - Review of other HR policies such as promotion/transfers/grievance redressal mechanism for staff. - Interaction with operations staff at different levels like AM/DM/RM to understand their working/stress/competency to handle the job - Review of various decision making processes. Output: The output of the assignment is the documentation of end-to-end processes of both HR as well as training related activities of Utkarsh, presented in this report. The observations bring out the perspective of the senior management of Utkarsh in designing various activities in a particular way as well as the actual practice in the field. The observations are also complemented with the consultant s opinion on gaps and areas of improvements. 1.3. Methodology and Approach The methodology adopted for this assignment was on-site (live) observation of HR processes and practices. Two visits (of two weeks each) were undertaken for this purpose which included discussions with HR and training team members as well as senior staff of other departments for better understanding of the rationale of policies and processes. The areas covered during each round of visit are as follows: 1st round Review of Manual, HR Planning, Recruitment, Training and Development 2nd round New Staff joining, Performance Appraisal, Promotion, Transfer, Reward & Punishment, Salary & Benefits, Incentives, Grievance Redressal, Feedback and Separation
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The report is organised in the following sections. Each section documents the existing practices of Utkarsh with respect to a particular activity followed by key observations and proposed action points along with its rationale. At the end of each section the plan of action to implement the recommendations is provided. All proposed recommendations were discussed and their rationale was explained to the senior management before documenting them. The perspective and concerns of management were taken into account while proposing any change in the existing policies/processes or recommending any new policy/process/action step. Section 2: This section documents the primary activity of the Human Resource (HR) department of HR planning and recruitments. Section 3: Recruitments are followed by joining of staff and their induction to the company. This section presents the related activities and processes. Section 4: In order to enable staff to understand the operations of Utkarsh and prepare them to undertake various tasks assigned to them, training is provided. The training and development activities of Utkarsh are documented in the section. Section 5: The observations on the HR policies related to salaries, incentives, leaves, transfers and other staff benefits are presented in this section. Section 6: This section documents the Performance Management System (PMS) which includes appraisals, promotion and rewards/punishments. Section 7: The process of addressing staff grievance and obtaining feedback from staff on their exit is outlined in this section. Section 8: This final section presents the consolidated plan for implementing various recommendations emerging from the scan of HR and training policy and processes of Utkarsh.
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S ECTION 2 H UMAN R ESOURCE P LANNING AND R ECRUITMENT

The HR department of Utkarsh is at present a fifteen member team headed by Mr Sulabh Jain. The support staff at Head Office (HO) include a Chief Manager (CM), two Senior Managers (SMs), two Managers and two Assistant Managers. The primary responsibility of HR team includes activities related to recruitment, training, promotion, transfers, salary & incentives, leaves, salary increment & appraisal and handling disciplinary cases. At present, there is a separate training team that also functions under the supervision of Head of HR department (discussed in Section 4 of this report). This section of the report discusses the existing practices of Utraksh related to staff planning and recruitment and key observations on the process gaps. 2.1. Existing recruitment system at Utkarsh The HR department estimates the resource requirements for the operations on the basis of staff data available with it from various branches and the business plan projections. Utkarsh estimates a requirement of around 3.5 staff for a mature branch with optimum capacity of handling 2,800 clients. This also forms the basis for estimation of supervisory staff at the area, divisional, regional and zonal levels. Table 2 shows the broad assumptions used by the HR department for estimations. Table 2: Assumptions for estimating staff requirement Assumptions No. of clients that a branch can handle optimally No. of clients that can be optimally handled by a field staff^ Field staff per branch (optimum capacity) No. of branches under jurisdiction of an Area Manager (AM) No. of AMs reporting to a Divisional Manager(DM) No. of DMs reporting to a Zonal Manager (ZM)
2,800 800 3.5 3 3 3
^Assuming 80 centre meetings per month covering 40 centres which translates into 4 centre meetings per day with each centre having an average of 20 members.
The resource planning is done at the beginning of the year in relation to the business plan with quarterly break-ups of resource requirements. Being a developing MFI, Utkarsh does not have sufficient internal resources that could be promoted to the next levels in the hierarchy to meet the growth needs. It is therefore highly dependent on external recruitments, particularly at the field staff level. For higher level, its policy considers meeting 80% of resource needs through lateral staff growth and 20% through external recruitments. Utkarsh receives application mainly in response to the advertisements in the local newspapers and from staff references. Recruitments are conducted at regional level every Saturday but interviews for lateral promotions are done only at the Head Office (HO) in Varanasi. Lateral recruitments can happen at the regional level only if a Head of Department (HOD) is available there. For selection of new field staff the shortlisted candidates have to undergo a written test followed by an interview. Field staffs with prior experience as well as those recruited for
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managerial positions do not have to undergo written tests. The interview panel consists of at least two members including one member at the level of senior manager or above from a different department (other than operations). The recruitment panel generally visualises the growth of a candidate upto at least two additional levels (like for CO upto AM) for making a selection decision. However, due to resource constraints faced by the organisation candidates fit only for the CO level are also recruited. Results are announced at the end of the same day for the TCO level but for BM and above levels the panel seeks some time to discuss and analyse the suitability. After selection, formal as well as informal reference check (in conformity to the MFIN selfregulatory guideline) is done for all candidates. As a policy for recruiting staff from other MFIs, Utkarsh selects only serving staff of SKS as there has been a number of fraud cases in the past. Similarly it does not take staff from Sonata due to quality issues. Figure 2.1 summarises the recruitment activities. Figure 2.1: Existing system of recruitments at Utkarsh
Applications generated through a. advertisements in local newspapers b. staff references & c. Pamphlet distribution outside educational institutions
Recruitments at RO level every Saturday Brief introduction of Utkarsh Written tests followed by interview for TCO level Only interviews for BM & above Promotional interviews only at HO Interview panel consists of at least 2 members, with one at Senior Manager level or above from other department Announcement of results Same day for TCOs Panel seeks time for analysing the suitability of candidates for BM & above levels
Reference checks Both formal as well as informal checks as per MFIN guideline
2.2. Key observations and recommendations The key observations made on the recruitment system of Utkarsh have been broadly classified into four categories recruitment planning, policy, channels and process. These are discussed in the following sub-sections.
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2.2.1. Recruitment planning Demand estimation is linked with only current year business plan. Though business plan is reviewed in management committee meetings that take place quarterly, the demand estimation is not updated on a quarterly basis as per the changes in the plan. As of now, the method to project/estimate staffing requirement in divisions other than operations and audit is arbitrary. The staff requirement estimate doesnt reflect accurate picture as staff attrition rate is not taken into account.
Table 3 presents the actions points and its rationale for improvements in the recruitment planning Table 3: Recommendations for recruitment planning
Action Point 1 The recruitment planning should be done for long-term, at least three years and the plan should be reviewed and revised on annual & quarterly intervals based on changes in growth projection. 2 Utkarsh need to closely study each department to find determinant(s) or driver(s) for expansion (additional staff) required at departments other than operations and audit, like, Admin, HR and Risk Management. 3 The current tool of estimation of staff requirement at all level should also factor in employee attrition and unauthorised leave. Rationale Perceived impact Long-term planning provides clear Timely implementation targets and ample time to of plans prepare for it in advance. It also Achievement of helps in budgeting and enables business targets the institution to manage shocks Improved staff and surprise situations better. productivity This will help HR department to Improved quality of HR better analyse the demand of planning additional staff at other Improved ability of departments and take better various departments to decisions. It will also help HR carry out their department to do prior planning responsibilities and for of recruitment. organisation as a whole The inclusion of factors like to achieve growth employee attrition and targets unauthorised leave will help the HR department to do more estimation more accurately.
2.2.2. Recruitment policy As mentioned above, Utkarsh aims to maintain an average of around 3.5 field staff per branch. At present, in new branches there are 2 field staff plus an acting branch manager. As per policy for every 40 centres there should be one field staff to manage it. If a branch covers 200 centres, one assistant BM has to be assigned to the branch. However, there is lack of policy/guideline related to Gender mix and caste mix (as being a socially responsible MFI). Capping of alumni from a single MFI. Cashpor alumni have large presence among current staff, especially in operations.
Recommendations for improvements in recruitment policy are presented in Table 4. Table 4: Recommendations for recruitment policy (6)
Action Point 1 The recruitment policy should formally adopt a guideline (not necessarily in terms of percentage) on caste and gender aspects and explicitly mention it in the HR manual.
2 The recruitment policy should formally prescribe a cap (%) on staffing from alumni of a single MFI and a particular state. Introduce a system of periodic (preferably monthly) tracking of mix of staff based on alumnus of different MFIs.
Rationale Perceived impact It is important from view point of Improved social control/risk management that outlook there is wide representation from Lesser chances of various social groups to prevent discrimination with the risk of a particular social staff based on group becoming dominant. In the caste/gender past, in east UP, caste politics Help the organisation in have led to operational difficulties managing factors that in several MFIs. demotivate and affect focus of staff This step is important for Help in keeping own mitigating the risk of emergence culture intact while of particular kind of culture and providing a facilitating work style in the organisation, environment for influenced from a particular MFI. sharing and learning Such groups may also favour their from experiences of own members and discriminate other MFIs other sets of staff, thereby Limiting discrimination disrupting operations. based on staff previous work background
2.2.3. Recruitment channels Utkarsh highly depends on staff reference and to some extent on local newspaper advertisement as channels for generating applications. It tried to distribute pamphlets outside educational institutions to but it did not work out as expected. Utkarsh believes that the low footfall is mainly due to two reasons (i) stopping of the recruitment process for 6-8 months after the Andhra Crisis for reassessing its strategies which led to a negative publicity and (ii) several other larger MFIs starting their operations in eastern UP which may have led to division of the pool of potential field officers. In this context, Utkarsh lacks a system of Tracking cost of hiring/sourcing staff. As a result, it is not able to accurately determine the unit cost of hiring to control costs or cost comparison for using other channels (like recruitment agency). Recording of channels through which candidates come to know about the position to gauge effectiveness of channels.
Recommendations for use of channels for recruitment are presented in Table 5. Table 5: Recommendations for recruitment channels
Action Point 1 Need to explore new cost effective channels. Revive channels like, employee referral incentive, placement agency and campus placement at rural colleges. Rationale It will improve the footfalls of candidates aspirant of making career at Utkarsh. It will provide wide base of choice of good candidates and improve overall quality of human resources at Perceived impact
Company able to meet

its growth target Improved effectiveness of staff
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Rationale Perceived impact Utkarsh that will result in improved organisational performance. 2 Undertake cost analysis of It will not only help in preparing Improved financial channels used by Utkarsh for staff budget and controlling cost but also bottomline recruitment. during negotiation of price with placement agencies. 3 Utkarsh should formally record and A formal recording will help to Company able to meet do periodic (quarterly) analysis of gauge effectiveness of the its staffing requirement the channel through which each of channels and devise/change the candidates appears for walk-in strategy of advertisement test/interview. accordingly to increase the footfall of candidates.
Action Point
2.2.4. Recruitment process Recruitment process is not adequately defined in the HR manual. Considering that Utkarsh plans to expand its outreach to 1 million clients over the period of three years, it will require a good bench strength of qualified, suitable and well trained staff and detailing of recruitment and selection process for its standardisation will be a critical step. Lack of a mechanism of tracking candidates whether they have appeared in past or not and when, in order to enforce the policy of not considering a rejected candidate before 3/6 months since he/she was rejected last. Lack of arrangements of seating, water and sanitation for candidates appearing at the recruitment centres. As a result, the situation outside recruitment office looks chaotic, which also affects smooth conduct of sessions (introduction, written test and interview). Moreover, the candidates may carry a bad impression of the company of an uncaring employer and they may lose motivation to pursue their career at the company. Management of the process at the recruitment centre requires to be streamlined further. As of now, there is no initial screening of candidates. There is also no reception desk at the recruitment centre for providing information to the walk-in candidates. As a result, candidates keep walking into class-room, while introduction session is in progress which creates disorder and confusion. The appearance of rooms used for introduction, test and interview sessions and frequent interruptions by staff and candidates waiting outside during the sessions gives an impression of lack of seriousness in the process and leaves a feeling that the position offered is not valued within the organisation. Introduction session feedback is not taken from candidates on their understanding of the topics explained to them. Frequent usage of technical and other terms which are not commonly used and may be difficult for a first timer to comprehend. Test paper - subjective questions are included which are eventually not evaluated for selection of candidates. Question papers carry too many spelling and factual errors. The poor print quality of question papers (observed in some cases) makes reading difficult. Lack of vigil by Utkarsh supervisors to prevent candidates from copying or referring their neighbours while writing answers of the test paper.
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Personal interview there is lack of a scoring system on key parameters for selection. Only the final decision (selected or rejected or on-hold) is recorded on the CV of a candidate, without substantiating the reason(s) for it. No analysis of retention of TCOs/PCOs based on channel to gauge reliability of channels.
Recommendations on process improvements are highlighted in Table 6. Table 6: Recommendations for recruitment process
Action Point 1 The HR manual should clearly explain recruitment process in detail to standardise the process. The associated policies and their rationale should also be laid down along with processes. Rationale Perceived impact Considering that Utkarsh plans to Improved quality of expand its outreach to one million human resource clients over the period of three years, it will require good bench strength of qualified, suitable and well trained staff and detailing of recruitment and selection process for its standardisation will be a critical step. It will help Utkarsh to trace the Improved quality of history of appearance of a human resource candidate at Utkarsh and will enable Utkarsh to check the practice of appearance of rejected candidate before the stipulated period.
2 Utkarsh should deploy an HR MIS software to do a mandatory check of history of appearance of all the appearing candidates before allowing them to take test/interview. For this the basic details & the selection results of all appearing candidates has to be entered in the MIS software. 3 All recruitment centres must have a registration desk, where a person remains seated during entire process. The person at the desk will be the first contact point for any candidate who visits the recruitment centre. The person will register the candidate using an information template, collect his/her CV and photograph, check his/her eligibility, fill a top sheet for each eligible candidate and control the crowd outside. The registration desk must also keep a standard blank format of CV for all candidates to fill. 4 Utkarsh should look for a space (that has waiting area with shed, chairs, water and sanitation facilities) that can accommodate 30-50 persons at its recruitment centres (depending on the number of candidates most likely to appear at each of the centre on the
It will smoothen the process of Less stress on staff and recruitment and avoid chaos and candidates during disorder during recruitment. It recruitments will save time for both staff and Improved staff candidates and protect them from productivity undue stress. Improve image of organisation
Given the psyche of a fresh Improved image of candidate (job aspirant), organisation (as caring appearance of office and employer) facility/treatment provided to them during their visit to centre for test/interview, also plays a significant role in shaping their motivation to pursue their career
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Action Point recruitment day).
5 Training of Trainers (ToT) should be organised for staff responsible for making presentation before the candidates.
6 Introduce scoring by interviewers on key aspects at the time of interview. Key aspects should be defined and all interviewers should be informed on how to give score to a candidate on a particular parameter. 7 Introduce a system of periodic tracking of retention level or attrition level of staff based on the channel through which they were inducted in the organisation.
Rationale Perceived impact at the company. Moreover, Utkarsh is a socially responsible MFI, so it must ensure that all the visiting candidates are treated with dignity by offering them easy access to basic facilities like chair, water and sanitation, at the recruitment centres. It will improve the communication Improved clarity among and presentation skill of staff and candidates on key they will be clear in their aspects of job explanations. It will also reduce Reduction in staff the likelihood of mismatch of attrition expectations of a candidate after joining, if certain aspects are explained clearly during introduction session. This will be for future reference of Improved quality of a candidate when he/she appears human resource again for interview. This will also help the management in prioritising choices during staff selection. This will help the HR department Reduction in staff in channel management: where to attrition focus and who is more effective.
2.3. Action plan This is for M-CRIL to write
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S ECTION 3 J OINING OF N EW S TAFF

3.1. New staff joining process at Utkarsh The new staff joining process at Utkarsh has been divided into two broad categories: (a) joining of TCOs, and (ii) joining of staff other than TCO. The segregation is made based on processes, documentation and additional steps involved in recruitment and joining of these two set of staff. This section of the report discusses the existing practices of Utraksh related to joining of staff and key observations on the process gaps. 3.1.1. Joining process of TCOs Once a candidate is selected for the position of TCO, he/she has to undergo three to five days of classroom induction training, immediately followed by three to five days of on-field training before officially joining the company. The details of classroom induction training and on-field training is provided in section 4 of this report. The on-field training of a TCO completes with the process of reassessment of the candidate by respective BM and DM. At the end of each batch of on-field training of selected TCOs, the CM, Training collects information on result of reassessment of all candidates over phone from DMs and prepare an excel sheet of successful candidates. The list (in excel sheet) of successful candidates is then sent to the Manager, HR (recruitment) through e-mail. The details of reassessment exercise for each candidate is captured in a prescribed format, which is filled by both respective BM and DM. The successful candidates are asked about their likely date of joining. They are usually given time to join within 15 days of completion of their reassessment exercise. In exceptional cases, the date of joining can be extended up to a week (beyond 15 days) by DM on specific request from candidate, if the DM finds the reason valid. The duly filled and signed reassessment sheet for each candidate is then sent by the DM to the Manager, HR (recruitment) through courier or any staff visiting HO or RO (only in case of candidates under ROs of Satna & Haridwar). Sometimes, the sheet is also given to the successful candidates to hand over to Manager, HR (recruitment) at HO or RO (as the case may be) when they visit there to complete the joining formalities. When a candidate reports to Manager, HR (handling joining of candidates) at HO or RO for appointment, the Manager, HR (recruitment) performs the following checks: (i) Ask the candidate about date of his/her interview to determine the batch of training. (ii) Takes out the list of successful candidates of reassessment exercise for that batch, as sent by the CM Training and confirms whether his/her name appears in the list or not. (iii) Pulls out the duly filled (and signed by DM) reassessment sheet of the candidate to verify his/her eligibility to join. In case, the candidates reassessment sheet has not arrived HO/RO by the time when the candidate reaches there for joining, the Manager, HR contacts the respective DM over phone and confirms the reassessment status of the candidate and asks him/her to also send a confirmatory e-mail or SMS about the status of candidates reassessment for office records.
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(iv) Takes out his/her CV and looks at the photograph pasted on it for authentication of identity of the person. Once these checks are performed successfully, the next step is of documents collection. The following documents are collected from the candidates, when they come to join: a) b) c) d) e) f) g) Self attested photo-copy of identity proof of the candidate, Self attested photo-copy of address proof of the candidate, Four copies of candidates latest colour photograph, Original copy of High School certificate, Self attested photo-copy of certificate of any other educational qualification, Original copy of undertaking from parents (in a prescribed format see Annex), Original copy of undertaking from a government employee (affidavit in a prescribed format see Annex).
The original copy of the identity proof, address proof and educational certificates (except High School certificate) is also to be brought along with the photo-copy. The original copy is matched with the photo-copy of the document and is returned after authentication, while the photocopy of the document is retained for official record. The original copy of High School certificate is retained by Utkarsh and kept in a safe vault. The candidate is issued a receipt against submission of the certificate. Another copy of the receipt is retained in the staff file (a separate file for each staff where all records of the staff are kept). The original copy is returned to the candidate when he/she leaves the organisation. This is deployed as a measure to keep deviant behaviour (switch to another job without intimation, missing from job without informing, run away with assets of the company, etc.) of TCOs in check. Further, telephonic verification of the parents and the government employee, who had given their undertakings are made on the number provided by the candidate in his/her presence. If the above documents and telephonic verification are found in order, the next step is filling of Staff Information Sheet (see Annex). The sheet (pre-printed form) is provided by Manager, HR (recruitment) to the candidate to fill-up all required details asked in the sheet. The sheet includes declaration from staff joining the Provident Fund scheme and Accidental Insurance cover provided by the company. Once the Staff Information Sheet is completely filled and signed by the candidate, print (two copies) of appointment letter (in prescribed Performa - see Annex) of the candidate is taken and get them signed by the Senior Manager, HR. While one copy of the signed appointment letter is issued to the candidate for his/her reference, while the another copy, signed by the candidate as acceptance of the offer, is retained by the HR department and kept in the staff file of the candidate for official record. The candidates reporting for appointment at ROs of Satna and Haridwar, their copy of appointment letter is given to them much later. Their copy of appointment letter is also prepared and signed at HO. The copies are then sent to the respective ROs through staff visiting there. After issuing the appointment letter and its acceptance by the candidate, the next step is to assigning place of posting (branch) to them. For this, the Manager, HR (recruitment) discusses with the HoDs of HR and Operations over phone (or in person) and based on their final decision, the place of posting (branch) is assigned to the candidates. To this effect, a joining report
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(see Annex) is prepared and given to the candidate to hand-over to the BM (of the branch where the candidate is posted) at the time of reporting (joining) the duty. The BM of the respective branch is supposed to fill the necessary details in the joining report and send it back to Manager, HR (recruitment) at HO after signing it. For the candidates whose are appointed at ROs of Satna and Haridwar, all the documents related to appointment and joining are despatched to the HO by courier or through any staff visiting HO. However, the soft copies of the all documents of the appointed candidates are sent to the Manager, HR (recruitment) at HO on the same day. Once a candidate accepts the appointment offer, an employee ID is assigned to the candidate. The employee ID is simple serial number based on order in which a staff joins the company (Utkarsh). Further an employee ID Card application form is given to the candidate to fill-up and sign and then it is forwarded to the administrative department for preparing and issuing permanent employee ID card and bag to the candidate. Till the time, permanent ID card is not issued, the administrative department issue a temporary ID card to the candidate. Thereafter, the staff data are updated in the excel based records as well as in the new HR software (under development, not fully functional). A new record is created for each new staff joining the organisation. At end of every month, a list of new staff joining the organisation is prepared in excel sheet. The list is forwarded to the department handling staff insurance and the company secretary for registering his/her name under accidental insurance cover and opening of Provident Fund (PF) account respectively. Each staff file contains a check-list, which is pasted on the back of the cover of the file. The checklist includes list of all documents and actions associated with joining of a new staff. The person handling joining of staff has to tick against all documents collected and actions as and when completed. This also serves as a reminder of what all documents and actions are still left to be collected and completed to close the process of joining. Figure 3.1 below summarises the joining process of a TCO. Figure 3.1: Existing process of joining of a TCO at Utkarsh
Selected TCOs undergo training a. Candidates undergo 3 to 5 days of classroom induction training at any of the regional training centre followed by on-field training of 3 to 5 days at a branch office of Utkarsh. b. A reassessment of the candidate is done by respective BM and DM at the end of on-field training of a TCO.
Reassessment sheets sent to RO/HO The CM, Training, gets the information of successful candidates from DMs and prepares their list and sends to RO/HO The respective DMs send the duly filled reassessment sheets to RO/HO.
Contd. on next page
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Submission of relevant documents Candidates who cleared reassessment process, visits RO/HO with all relevant documents for their submission. The documents submitted are verified with their original copies and the photo copies are stored in a file for official records. The copy of undertakings from parents and government employee and HSC certificate is taken in original and a receipt is issued against submission of HSC certificate. Candidates also fill a staff information sheet (in a prescribed Performa) Telephonic verification of parents and government employee, who had given their undertakings for the candidate.
Issuing Appointment and Joining Letter Two copies of appointment letter are issued to the candidate. One copy is returned by the candidate after signing it, as mark of acceptance. Place of posting of the candidate is confirmed by HoD, HR. A unique employee ID is assigned to the candidate. An ID Card application form is given to the candidate to fill-up and sign. The application is then sent to the admin. dept. for issuing employee ID card and bag to the candidate Thenafter, a joining letter is issued to the candidate to be handed over to the respective BM at the time of reporting at the branch. The respective BM fills the necessary details in the joining sheet and returns the same to HO.
Updating HR records The staff data are updated in excel based records as well as in new HR software. At the end of every month, a list of new staff joining the organisation is prepared. The list is forwarded to the department handling staff insurance and the company secretary for registering his/her name under accidental insurance cover and opening of PF account respectively.
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3.1.2. Joining process of staff other than TCOs The staff other than TCOs are usually those who have some relevant work experience prior to joining Utkarsh. As explained in section 2 (Human Resource Planning and Recruitment) of this report, such candidates are not required to undergo written-test or on-field training prior to joining Utkarsh. All such recruitments (interview) are made only at HO. After their job interview, the top sheet, which carries the decision of the interview panel, is sent to the Manager HR (recruitment). The manager updates the names of successful candidates (including on-hold candidates) in a running excel sheet after each day of interview. In addition to it, a list of successful candidates for each day of interview is also prepared separately and sent to HoDHR by end of the day (usually Saturday) for his reference. The CVs of all selected and on-hold candidates are kept in a box folder. On the next working day (usually Monday), an offer letter is prepared for each selected candidate. The offer letter contains key information, like, position offered, brief job description, salary offered, validity period of offer etc. A print of each offer letter is taken and signed by the Manager HR (recruitment). The signed copy is scanned and the same is sent to the candidates on their e-mail IDs as attachment. At the same time, the candidate is also informed over phone about the offer and they are asked to send their acceptance/rejection of the offer by return mail. The candidates on hold are given offer letter only when their services are required. In case, any candidate has not provided e-mail ID in its CV, he/she is first contacted over phone (on the number provided by him in his/her CV) and asked to give his/her e-mail ID (if they have any). If one doesnt have e-mail ID of own, he/she is asked to provide e-mail ID any of his/her friends or relatives or acquaintances, to which the offer letter can be sent and accessed by the candidate. Once the candidate provides the alternative e-mail ID (of someone else), the offer letter is sent on the e-mail ID. They are also told to send their acceptance/rejection by return mail. In case, any candidate cant provide any e -mail ID, he/she is asked to come to office (HO) to collect the hard copy of the offer letter and his/her acceptance is also taken on another copy, which is stored in the staff file for official record. Once a candidate, accepts the offer, the next step is to do his/her reference-check from his/her current employer. The candidates working with the MFIs, who are not part of Micro-Finance Institutions Network (MFIN), they are asked to provide two references (who are senior to them and above the level of BM) of their choice at their current organisation. The candidates who have not provided their current employee ID during their job interview, their employee ID is collected over phone before initiating their reference check. Before initiating the reference check, it is checked with the candidates if they have already given resignation from their current job or not. If not, they are asked to do so at earliest and send a copy (scanned copy or e-mail) of the resignation letter sent to and accepted by their current employer, to the Manager HR (recruitment). Once the candidate tendered his/her resignation from his/her current job, a reference check of the candidate is performed by contacting his/her referees to get their opinion on him/her. In case of candidates working with any of the member organisation of MFIN, an e-mail request, seeking information on his/her current employment status and their opinion on the candidate, is sent to the HR department of the MFI concerned quoting his/her employee ID. For MFIs not a member of MFIN, the referees (as provided by the candidates) are called over phone to get
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their opinion on the candidate and the same is recorded on the CV of the candidates. If the candidate is working with Cashpor Micro-Credit, the HoD Operations is provided with the name, current position, place of posting and employee ID of the candidate and he does the reference check with the HR department of Cashpor Micro-Credit over phone and informs the Manager HR (recruitment) about the opinion, which is further recorded on the CV of the candidate. A copy (print) of all e-mail replies on reference check from MFIN members is attached with their CVs placed in the box folder (where CVs of selected and on-hold candidates are kept). If the reference check of a candidate is found positive on all parameters then a phone call is made to the candidate and asked about his/her likely date of joining. As per the HR policy of Utkarsh, the validity of job offer lasts for a month for candidates who are already in a job. For candidates, who have already resigned from their last job and currently not in any job, are asked to join within a week. In case, any candidate requests for extension in the joining date beyond the validity of offer letter, the candidate is asked to write a separate mail asking for extension in date with stating the reason. Such request is then forwarded to HoD-HR, whose decision is conveyed to the candidate through a revised offer letter. If there is any negative comment received on a candidate during his/her reference check, the same is reported to the HoD-HR and he takes the final call (usually in consultation with the HoD concerned, and sometimes also consults the MD), which is communicated to the Manager HR (recruitment) either over phone or through e-mail or in-person. If the final decision is not to hire the candidate, the same is communicated to the candidate over e-mail or over phone or a letter sent to his/her address that the offer has been withdrawn due to negative feedback. The successful candidate are asked to join only on Monday, as induction training for new staff always begins on Monday. The selected candidates who come to HO on Monday to join are first sent to common induction training of new staff. At the evening, after the training session get over, they visit the Manager HR (recruitment) to complete the joining process. If the number of candidates of joining is large, the process continues the next day (again in evening, after end of training session for the day). Rest of the process of joining (including submission of documents) is same as of TCOs. For the positions below BM, the candidates are required to submit the documents same as of TCOs. In addition to that, they are also required to submit copy of relieving letter from their previous employer. For positions of BM and above, the candidates are exempted from furnishing any undertakings (from either parents or government employee) and submit their High School certificate. Figure 3.2 below summarises the joining process of staff other than TCO. Figure 3.2: Existing process of joining of staff other than TCO
Job Offer Letter issued to candidates c. The Manager HR (recruitment) updates (in excel sheet) the names of selected candidates from top sheets provided by the interview panels. d. An offer letter is prepared for each selected candidate and sent to each candidate as e-mail attachment. e. The candidate is also informed over phone about the offer and asked to send their acceptance/rejection of the offer by return mail.
Contd. on next page
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Reference checksheets from current Reassessment sent toemployer RO/HO itCM, is checked with the candidates if First The Training, gets the information they have already resigned from their of successful candidates from DMs and current jobtheir or not. not, theyto are asked prepares listIf and sends RO/HO do so and send copy of the letter. toThe respective DMs send the duly The candidates working withto MFIs, who filled reassessment sheets RO/HO. are not part of MFIN, they are asked to provide two references of their choice at their current organisation. An e-mail request for reference check is sent to the HR dept. of MFIN members, while, others referees are contacted over phone and their responses are recorded on CV of the candidates. If any negative comment received on a candidate during reference check, the same is reported to the HoD-HR and if the final decision is not to hire, the offer is withdrawn and the same is intimated to the candidate by e-mail/phone/post.
Submission of relevant documents Candidates whose reference check is, found positive are asked to visits and submit all relevant documents at HO. The documents submitted are verified with their original copies and the photo copies are stored for official records. Candidates are also required to submit copy of relieving letter from their previous employer. Candidates also fill a staff information sheet (in a prescribed Performa)
Issuing Joining Letter A unique employee ID is assigned to the candidate and an application is then sent to admin. for issuing employee ID card Thenafter, a joining letter is issued to the candidate to be handed over to the respective reporting officer. The respective official fills the required details in the joining sheet and returns the same to HO.
Updating HR records The staff data are updated in excel based records as well as in new HR software. The list is forwarded to the department handling staff insurance and the company secretary for registering his/her name under accidental insurance cover and opening of PF account respectively.
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3.2. Key observations and recommendations The key observations on the process of joining of a new staff (at various levels) at Utkarsh and recommendations thereof have been presented below. The overall process of staff joining founds to reasonably good with no serious flaw that requires major change in either polices or processes. However, some petty issues are found that also requires management attention. These are as follows: Undertaking by staff (in the staff information sheet) and annexure to the appointment letter are printed in English, whereas an overwhelming majority of staff are not well versed with English. The candidates mostly sign on them without understanding the text (content). The staff information sheet could be in printed form, instead of taking computer print each time for a candidate. It is adding to cost and time of the organisation, given that a large number of candidates join each week. The standard checklist of documents and actions that is stored in the staff file requires is not complete in terms of actions/steps to be performed or checked. It needs revision by adding all key documents and actions to the list. The excel based recording and tracking of joining process of a selected candidate also doesnt track all steps of a joining process but only a few. In absence of tracking of all key steps, there is good scope of delay or overlooking of follow-up with a candidate, as staff are currently relying on their memory to follow-up on various activities. The job offer letter doesnt mention that the offer is conditional based on positive response during reference check and other related factors. This is important from the view-point of protecting the organisation from unnecessary legal liabilities. The offer letter doesnt reiterate the point that the candidates should bring the original documents with themselves for verification of photo-copies of the documents submitted by them. Often candidates forget to carry their original documents with themselves when they come for appointment. The job offer letter sent as e-mail attachment is first taken as a computer print and then signature is put on it and then it is scanned and saved as image file, which get transmitted by e-mail. This is unnecessary long, tedious and expensive process and can be avoided by simply copying text in the main body of the mail, as it is sent through official e-mail account of the organisation. There is no separate tracking system of candidates who are put on-hold. In absence of any regular tracking of such candidates, the follow-up and retrieval of information of such candidates becomes difficult. Approval by HoD-HR of extension in joining date beyond a month after issuing offer letter is sometimes given verbally. In absence of any audit trail, such practice may provide scope to junior officers to by-pass their senior officers and offer extension on their own. Reference checks of candidates who do not work at member organisation of MFIN are performed over phone. The opinion of the referees are not recorded in details but only noted in positive and negative. Given the importance of reference check exercise, the opinion should have been captured in details.
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Rampant overwriting is found on the staff information sheet, especially in the sections that carries more legal importance. This is due to carelessness in filling-up of staff information sheet by the candidates and lack of proper understanding among the candidates, especially by TCOs and PCOs about the meaning of question/information asked in the staff information sheet. The term joining date and date of appointment is often used interchangeably in the official documents. Since these documents are mostly signed by the staff at HR division, it could have legal ramifications in future. There is no clarity on who is official appointing authority for various staffing levels. Invariably, every appointment letter is signed by Senior Manager, HR (Priyanka Singh), even in the case when the person appointed by her is senior to her in the organisational hierarchy. Assigning place of posting of staff at the time of appointment is often on the spot decision in consultation with HoD Operations, instead of a detailed objective exercise based on key parameters done in advance. Recommendations on process improvements are highlighted in Table 7. Table 7: Recommendations for improvement in staff joining process
Action Point 1 The staff information sheet, annexure of appointment letter and other official communication (particularly the papers that have legal implications), especially for middle and lower management staff should be either in Hindi or Bilingual. Rationale This will help them in better understanding of terms and conditions that are legally and officially binding on them. This is not only ethical practice and fairness in dealing with staff but the improved clarity among staff will also result less chances of conflict with management, no or little mismatch of expectations and improved productivity. Since the format of the sheet is standardised and a large number of staff joining every week, it will be cheaper to use printed sheet than taking computer print. Not only it will save cost but also save time in printing a set of papers for each candidate, especially when too many candidates are in queue to complete joining formalities. By adding all key steps under the tracking mode, it will ensure there is no delay or oversight on any step. This will not only make the process smoother but also minimise the risk of skipping or ignoring any step, resulting in delay or problem at a later stage. It will also help in supervision of joining process by Perceived impact
Establish image of a
transparent employer Less possibility of conflict with staff Improved staff productivity
2 The staff information sheet should be printed in a booklet form and the same should be used to get information and declaration from all the staff.
Contribute to financial
bottomline Improved productivity of staff Provide convenience to candidates who come to join
3 The checklist of documents and actions that is pasted in the staff file and the excel based tracking of joining process of a candidate should be improved by adding all steps/actions of the process into tracking list, such as, sending offer letter, acceptance of offer letter, reference check letter sent or call
Improvement in staff
efficiency Helps in determining staff accountability Convenience in staff monitoring
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Action Point made, reply of reference check received, confirmation of joining date by the candidate, letter of appointment issued, signed copy of appointment letter received from candidate, joining letter issued, joining letter received from official concerned etc. 4 The job offer letter should clearly mention as caveat that the offer made is conditional based on the nature of response received on the candidate during reference check or any other factor that influence appointment decision. In case of any adverse comments received on the capacity and character of the candidate from any source during verification process, the company holds the right to withdraw the offer at any stage before appointment.
Rationale senior staff.
Perceived impact
5 The job offer letter should clearly emphasise on the documents to be produced at the time of appointment of the candidate. It should also press upon the point that in addition to photo copies, the original documents should also be carried to the office by candidates. Given the trend where many candidates turn-up without original documents for verification, the process of joining not only get delayed but the candidate also faces lot of inconvenience by visiting their home again to collect the original documents and submit to the office.
This caveat is very important as it not only protects the company from getting bad name but also protects it from financial and administrative burden arising from unnecessary legal disputes with affected parties. This will also help the candidates to be clear in their minds that the offer letter is not a confirmed ticket to appointment, so they dont feel let down when their appointment is not confirmed. This will also help them to take more informed decision on accepting the risk of resigning from their current job and put themselves under scrutiny by accepting the new job offer. The job offer letter not only also serves as a reference document for the candidate but also as a reminder of what they should keep ready with themselves at the time when they visit the companys office. The same should also be reminded when call is made to the candidate about the offer from the company. The reminders through the offer letter will increase the likelihood of candidates brining their original documents with themselves.
Gets image of a
transparent employer Filters good human resource for selection Avoid undesirable expense and time
Reduces delay in joining

of new staff
Saves staff time

improved staff productivity
3.3. Action plan This is for M-CRIL to write
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S ECTION 4 S TAFF T RAINING AND D EVELOPMENT

4.1. Introduction to the Training and Development Cell of Utkarsh This section of the report discusses the existing practices of Utraksh related to staff training and development and key observations on the process gaps. The present set-up of Training and Development activities at Utkarsh (within the HR department) is led by a Chief Manager, Training. He is supported by Regional Training Officers (RTOs), who are further assisted by Training Officers (TOs). Presently, eight staff are working in the Training Cell, posted at various locations. Though the training facilities have been established at six locations (based on operational regions of Utkarsh), currently the trainings are delivered at only four locations Varanasi (in UP), Arrah (in Bihar), Haridwar (in Uttarakhand) and Satna (in MP). The facilities at Arrah, Haridwar and Satna are used only for conducting Induction Training for TCOs, whereas, the facility at Varanasi is used for all types of in-house training conducted by Utkarsh. The in-house trainings provided by Utkarsh for its staff are both classroom and on-field trainings. The classroom trainings are targeting staff only upto Area Managers. Currently there is no plan of training or training module designed for staffing above Area Managers. The onfield training is designed only for TCOs. There is no specific design or system for on-job training for other set of staff. 4.1.1. Classroom training At present, Utkarsh conducts three types of class-room training (i) Induction Training, (ii) Refresher Training, and (iii) Promotional Training. The focus of these trainings is mainly around operational processes and procedures. There is no specific module designed or developed for other functional areas, such as, Audit, HR, SPM, IT and Accounts. (a) Induction Training This training is conducted for all new recruits in Utkarsh but mainly targeting the TCOs. It is compulsory for all new recruit to attend the induction training. The aim of this training is to impart basic knowledge to the trainees about the company and its microfinance operational processes and also help them to immerse themselves with culture of the organization. The classroom training is of five days, followed by 5 days of on-field training (2 -3 days for non operation staff). If the batch size is less than 10, classroom training and on-field training are held for 2.5 days each. The classroom component of the induction training is held almost every week beginning from Monday. This is held at each Regional Training Centres (RTCs). Each RTC is provided by one or two RTOs and TOs who are also stationed there. Each centre has developed its own training infrastructure, with a small training room, 15-20 armless plastic chairs and a whiteboard or a blackboard. Each RTC also provide facility of night stay (during the training) for candidates who have no place to stay in the respective town or nearby from where they can commute daily. Company provide them with only mattresses. Candidates are expected to bring their bed-sheet and blanket with themselves, The company doesnt provide candidates with food or tea during the training. The candidates have to manage and bear food and tea expenses of their own.
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Currently the trainings are delivered at only four RTCs - Varanasi (in UP), Arrah (in Bihar), Haridwar (in Uttarakhand) and Satna (in MP). Except the RTC at Varanasi, all other RTCs organise induction training only for TCOs. At RTC Varanasi, HoDs also take some sessions during induction training, whereas, trainings at all other RTCs are delivered only through RTOs and TOs. Candidates are expected to take notes during the training on their own note-book and the company doesnt provide them with any stationery and printed reference materials. There is minimal or no use of audio visual aid, however, of late, Utkarsh has made a short video (1.5 hours) explaining and depicting basic operational processes. The video is supposed to be used during induction trainings but lack of audio-visual aids at training centres limits the usage of the video. Figure 4.1 below summarises the process of staff induction training at Utkarsh. Figure 4.1: Existing process of staff induction training at Utkarsh
Scheduling of Induction Training f. The classroom training is held on every Monday at each of the RTCs. g. Training is spread over 3-5 days (7 hrs. a day), depending on the batch size. h. The candidates who are selected for the job at Utkarsh are asked to join induction training at respective RTC.
Training Delivery Training begins at 10 AM every day at Reassessment sheets to 8-20. RO/HO each RTC with a batch sent size of The CM, Training, gets the information Training is organised in a small room of successful candidates from DMs and with 15-20 armless chairs, arranged in prepares their list and sends to RO/HO theatre style. Attendance The respective DMs send duly of candidates isthe taken on filled reassessment sheets to RO/HO. each day of classroom training. An outline of the induction training has been designed to be used by the trainers, however, there is no detailed note or content provided to trainers. The trainers use lecture as the dominant mode of training and candidates are expected to take notes from lectures and they are not provided with any printed reference material. Trainees are expected to manage food and stay arrangement on their own. However, company provides night stay arrangement to those who cant manage stay arrangement on their own
Post Training Formalities TCOs who attended all days of the classroom training are briefed about on-field training components and are informed about where they will be sent. Other candidates are asked to visits HR dept. to complete their joining process.
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(b) Refresher Training The refresher training aims to enhance the existing skills and reinforce the understanding of existing (as well as any new introduction) policies and processes in respective functional area of staff so that they become capable of delivering more qualitative output and also make them better suited for higher level responsibilities. The refresher training is provided to all the employees from TCO to Area Manger at regular intervals. Each TCO/CO has to go through a refresher trainings at an interval of 45 days and each BM, AM and other staff at HO (including of HR, IT and audit), have to undergo refresher training once in a quarter. The refresher training for TCO/CO is of three hours with usual batch size of 20, whereas the refresher training for other set of staff is held for one full day with usual batch size of 10-12. The training module is mostly designed on the basis of feedback received and observation made during regular monitoring and supervision of the supervisors. Figure 4.2 below summarises the process of staff refresher training at Utkarsh. Figure 4.2: Existing process of staff refresher training at Utkarsh
Scheduling of Refresher Training a. Each TCO/CO should ideally undergo refresher training once in 45 days, whereas, other staff have to undergo refresher training once in a quarter. b. Such training is usually of three hours for TCO/CO and one full day for others. c. A calendar of training is prepared for each quarter and accordingly trainees are selected and informed to attend.
Training Delivery This is also classroom training with a Reassessment sent to RO/HO batch size of 20sheets for TCO/CO and 10-12 for The CM, Training, gets the information others. of successful candidates from held DMs at and Training for TCO/CO is usually prepares their list and sends to RO/HO RO/DO. For other staff, it is held at HO. The respective DMs send The seating arrangement atthe theduly training filled reassessment sheets to RO/HO. is in theatre style. At the start, attendance of candidates is recorded in a sheet. Resource person at such training are usually supervisors at various levels. Such trainings are usually not in very structured format with defined content but it is more of an interactive session or lecture. The focus here is usually on discussing problem areas and updating them with new policies and procedures and also to clarify their doubts on existing policies and procedures.
Post Training Formalities
Candidates are asked to provide their

feedback on the training on a form.
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(c) Promotional Training This training is designed for the staff identified for promotion (during annual and/or midterm appraisal). The aim of this training is to equip these staff with knowledge and processes required to handle the responsibility for the new position. Currently the promotion training is offered only for those who are promoted from CO to BM and from BM to AM. The batch size of such trainings is usually not more than 20. The duration of training in case of COs promoted as BMs is of 2 days, whereas, in case of BMs promoted as AMs, the duration of training is of just one day. The numbers of various types of training programmes organised by Utkarsh is captured in Table 8a and 8b. Table 8a: Number of classroom trainings conducted by Utkarsh (FY 2011-12)
Type of Training CO refresher BM refresher AM refresher HO staff refresher BM promotion Product training (CO+BM) No. of training 8 1 2 1 2 No. of participants * 627 50 23 18 17 175
* The number includes staff who have been trained multiple times
Table 8b: Number of classroom trainings conducted by Utkarsh (FY 2012-13, upto quarter 3)
Quarter-1 Quarter -2 Quarter -3 No. of No. of No. of No. of No. of No. of participants training participants training participants training 11 3 8 1 46 33 4 181 18 33 2 20 1 22 1 18 2 120 33 219
Type of Training CO to BM promotion BM to AM promotion CO refresher BM refrehser AM refresher HO Staff Refresher Total
Figure 4.3 below summarises the process of promotional training of staff at Utkarsh. Figure 4.3: Existing process of promotional training of staff at Utkarsh
Scheduling of Promotional Training a. Such training is usually held after each staff promotion exercise. b. Such training is usually of two days for COs and one full day for BMs. c. A calendar of training is prepared for each set of staff and accordingly trainees are informed to attend.
Contd. on next page
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A scan of HR policies and processes of Utkarsh Training Delivery This is also classroom training with a Reassessment sheets sent to RO/HO batch size of 20. The CM, Training, gets the information Such trainings are usually held at HO. of successful candidates from DMs and The seating arrangement at the training prepares their list and sends to RO/HO is in theatre style. The DMs send the duly is At therespective start, attendance of candidates filled reassessment sheets to RO/HO. recorded in a sheet. Resource person at such training are usually Training Managers and supervisors at various levels. An outline of the promotional training has been designed to be used by the trainers, however, there is no detailed note or content provided to trainers.
Post Training Formalities Candidates are asked to provide their feedback on the training on a form.
4.1.2. On-field training On-field training is primarily designed for TCOs. In this training, the trainee is sent to a branch office to observe all key operational processes on-field (like, village survey, group formation, CGT, GRT, Centre meeting etc.) as well as back office operations. The duration of this training is of three to five days (depending on batch size of classroom induction training) and during this period the trainee has to stay at the branch premise and is constantly guided by the BM concerned. The trainee visits along with PCOs/COs to the field/client. There is no structured guideline for on-field training of staff but only key areas of training are specified. The trainee primarily learns through live demonstration and clarifies himself or herself by asking questions to the accompanying officer, wherever he/she has doubts. At the same time, the BM also asks the trainee at end of each day to explain whatever he has observed or learnt during the day to reinforce his/her learning. At end of the on-field training, the trainee undergoes reassessment exercise by respective BM and DM. This exercise is to assess the learning level and attitude of the trainee, based on which it is decided whether the trainee is fit to be hired or not or it requires further training. The response are recorded in a specified format and sent to HO for official record. Figure 4.4 below summarises the process of on-field training of staff at Utkarsh. Figure 4.4: Existing process of on-field training of staff at Utkarsh
Scheduling of On-Field Training a. Such training is followed by each classroom induction training batch. b. Such training is usually of 3-5 days starting on each Monday/Thursday. c. At end of classroom induction training, the placement (at branch) of each trainee is finalised and the same is conveyed to trainees and respective BM of the branch.
Contd. on next page
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Training Delivery Only one trainee is sent to a branch at Reassessment sheetstraining. sent to RO/HO one time for on-field Candidates The CM, Training, gets the information attendance of each day is of successful candidates from DMs and recorded in a sheet. prepares their and sends to RO/HO Trainee visits tolist field/client along with PCOs/COs The respective DMs send the duly and to observe the processes filled reassessment sheets to RO/HO. back office operations are explained by the BM Such trainings are usually not in very structured format with defined content but it is more of an observation process through live demonstration of activities. Reinforcement of learning is made through question answer session at end of each day of training.
Post Training Formalities
Candidates undergo reassessment at

the end of on-field training. The duly filled reassessment sheet is then sent to HO/RO for their record.
4.1.3. On-the-job training On-the-job training is for all new staff (including TCOs) who join any of the departments at Utkarsh. Such training is usually provided by immediate supervisor of the new staff or the peers. Thus far, Utkarsh has not developed any structured training manual or guidelines for On-the-job training. The present mode of on-the-job training of a staff is completely left to the convenience and style of his/her reporting officer. There are no milestones specified (of training subjects) to be covered in a given time-frame. There is also no monitoring mechanism to gauge learning level of a new staff by HR department. 4.2. Key observations and recommendations 4.2.1. Scoping and Planning Though training is a regular activity of HR department it does not find place in the HR manual of Utkarsh. In absence of official policy document on training, it is difficult to determine the scope of training cell at Utkarsh. However, discussion with officials at HR department, it is evident that training is currently focussed on lower and middle management staff in the operations department. As of now, the primary responsibility of development of functional skill of staff in other departments is of the respective HoDs. Training calendar (for refresher and promotion training) is not prepared well in advance. Very often trainings are schedule at very short notice. Training focus only on functional area but not soft skills, which Utkarsh considers one of the main areas of capacity building of staff in near future.
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Training Managers have multiple responsibilities, including recruitment and financial literacy training of clients.
Recommendations on process improvements are highlighted in Table 9. Table 9: Recommendations for improvement in training scoping and planning process
Action Point 1 The HR department should clearly define the scope of the roles and responsibilities of training and staff capacity development. This should be part of its strategic planning and visioning exercise. The role of HR department, policies and activities associated with staff capacity development should also be included in the HR manual. The scope should include staff capacity development beyond operations department and also cover other line departments of Utkarsh. Similarly, the focus of training should also expand beyond frontline staff and include middle and senior management staff. The scope should also look beyond knowledge of policies/procedures and skill development in functional area but also put adequate focus on development of relevant soft skills1 (like, communication, leadership, stress management, goal setting, team management, motivational, interviewing and training skills) among staff to effectively discharge their duties/responsibilities. 2 The strategy on training should clearly spell out to what extent the training and staff development needs of Utkarsh will be addressed through in-house resources and for what type of capacity development they will look for outside resources. Based on frequency and quantity of
1
Rationale Defining and expanding the scope will help the HR department of Utkarsh in keeping the focus and better planning and usage of resources in order to meet the growth targets with quality and efficiency.
Perceived impact
Clarity on roles Better planning Improved staff

satisfaction Reduced staff attrition
Devising such strategy will help in Improved staff determining focus, budget and productivity resources for training and staff capacity development activities.
M-CRIL has already undertaken one round of training need assessment of various levels of staff at Utkarsh. The key areas of training identified in the exercise could be a good starting point for Utkarsh to design and develop training module on those areas. The module can be developed using in-house resources as well as inputs from agencies/individuals with required expertise in those areas.
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Action Point particular type of training and capacity development measures, Utkarsh can decide, what sort of capacities to be developed in house and what can be outsourced. 3 The on-job training for fresher should not be completely left with respective departments but HR department should be primarily responsible to ensure that on-job training in any department is structured and learning of the candidates should be monitored and assessed by the HR department. 4 In addition to training/coaching, Utkarsh should also plan for other activities for staff capacity development, such as exposure visit, regularly providing reading materials, conducting quizzes, providing them with self-learning and assessing courses/learning materials, etc. Utkarsh can plan to publish a monthly magazine for internal circulation among staff. The magazine will cover latest updates/news at organisational level as well as news from the microfinance sector. The magazine will also include not only latest circulars or office orders but also abridge or details of important policies and procedures or any clarification on them for reinforcement of understanding among staff. It should devote a page on award (best TCO, PCO/CO and BM) for the month, carrying photo and brief profile of the awardees. A section can also be devoted to staff where they can share their experience or incidents from the field or even jokes and puzzles. The magazine should be placed at each branch and department for staff to read. Each department can think of including supplement to the magazine carrying reading materials for staff related to respective department (e.g. Audit, IT, accounts
Rationale
Perceived impact
Monitoring and assessment of on- Improved staff job training of freshers will productivity improve the quality and seriousness of learning and coaching.
These activities will not only Well informed staff supplement learning from Improved staff classroom trainings but also helps satisfaction in building environment that encourage urge for learning among staff.
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Action Point etc.). To ensure that staff compulsorily read the magazine (and supplement), a monthly quiz can be held for each level of staff. The quiz will carry questions from previous issue of magazine. The scores of monthly quiz can be considered during performance appraisal of staff. Utkarsh, need to appoint dedicated staff (within HR department) for publication of monthly magazine and also devise a system to administer quiz at all level of staffing. 5 As part of annual planning exercise, the HR department should release annual training calendar. The calendar for a year should be prepared atleast a quarter ahead of the beginning of a new year. The calendar should include all regular type of trainings, such as, induction training, refresher trainings and promotion training. Any training or capacity building activity, where it is not possible to determine the schedule at the beginning of the year, notice should be given by HR department to all concerned, preferably a month prior to holding such activity. The training calendar should be finalised in consultation with other HoDs to avoid clashes of priorities among line departments. The calendar should be finalised with approval from the MD and it should be circulated among all HoDs to help them plan their activities. Once the schedule of training for the year is finalised, the dates should not be revised unless there is/are strong reason(s) to do so. Any change in the calendar must also be approved by the MD.
Rationale
Perceived impact
The training calendar will help all Improved staff department concerned to plan productivity their activities accordingly and Better co-ordination free their resources to undergo among departments capacity development. A short notice on training usually disturbs the planned activities of department and sends tizzy among staff, especially when they are struggling to meet their departmental targets. The calendar will also help the faculties to be drawn from different departments to plan their time and contents.
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4.2.2. Training Need Assessment Absence of a formal process of periodic training need assessment of staff at all levels. None of the staff working at Training cell has undergone any formal training on designing training module, delivering training or undertaking training need assessment and neither have they any prior experience of doing such activities before the responsibilities were handed over to them. Staffs are not sent outside for training or exposure, except for a few cases. Lack of formal training for staff above the level of Area Manager
Recommendations on process improvements are highlighted in Table 10. Table 10: Recommendations for improvement in training need assessment process
Action Point 1 Introduce a scientific system of training need assessment (TNA) of staff at regular interval (at least twice a year). This exercise can be clubbed with or part of half-yearly Staff Performance Appraisal exercise. A TNA framework and tool need to be developed for this purpose. Accordingly, all staff using the tool should be given training on how to administer the tool. The HR department should not only also plan to conduct verification of TNA of staff on sample basis to confirm the results of TNA exercise but also be an observer (again on sample basis) during TNA exercise. 2 Based on the scope of the training and capacity development role of the HR department at Utkarsh and decision on activities to be undertaken in-house, the HR department should accordingly plan to upgrade their current training team either by adding new resources (if required) or developing the capacity of current team. Rationale This will help the management of the company in determining the focus of training programmes and designing contents that will be relevant to staff and needs of the organisation. A periodic review of training needs will not only help the company to track progress/results of its capacity development measures but also help in keeping the trainings and other capacity development measures undertaken, contemporary to the needs of the organisation. Perceived impact
Training design more

suited to the need of staff Improved staff skill and productivity Improved staff satisfaction Reduced staff attrition
Since it is recommended to Improved quality of considerably expand the scope of training training and capacity Improved staff development role of HR productivity department, moreover, likely rapid increase in staffing in coming years due to projected fast growth in operations, the overhauling of training team becomes key to success of training and capacity building initiatives of the company. This exercise will also help in determining budget and resources required for training and staff capacity development activities.
4.2.3. Induction training process
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(a) Training Content Session flow designed in a logical sequence but the same is not followed during training due to availability (or lack of it) of resource persons of various sessions at particular time. The training content at various training centres are common but the training duration differs. If the batch size of training is 10 and above, the training delivery for 5 days duration or else it is squeezed into three days. There is only outline given to trainers on the topic but no guidelines or trainers notes to follow to maintain uniformity across trainings. Induction training is primarily about credit and associated operations of the company. The idea should be to expose the trainees to several aspects of operations rather than teaching them how to do it. It may not be so relevant for candidates joining in other departments of the company. SPM processes are not integrated in training.
Recommendations on process improvements are highlighted in Table 11. Table 11: Recommendations for improvement in content of induction training
Action Point 1 The orientation of Induction Training should be to expose candidates to various divisions and important functions of the organisation and important policies related to HR and conduct of employee. The induction training should not focus on how to do but to familiarise with the processes. The current curriculum is primarily designed for TCOs and it includes functional skill development of TCOs. As all new recruits have to undergo the same module, a large section of the current module is too detail for candidates of other departments (e.g. Accounts, Finance, Administration etc.). In this backdrop, it is suggested to develop a revised common induction module of three days (irrespective of batch size) for all levels of staff. The detailing of processes, covering how to do, for TCOs can continue for another two days. The new recruit in audit and IT department may also be asked to attend the how to do modules Rationale Perceived impact Training is impactful only when Improved impact of the content of the training is of training immediate relevance to the Saves time and trainee. The present module is resources more suited to TCOs/COs and not for officers above BM. Making the training very process focussed will lose the interest of other trainees. The idea should be to familiarise them with the process rather than passing on skill on how to perform certain task.
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Action Point following common induction training as these contents are also relevant for their job. 2 The common induction training module should also include mention of macro environment of microfinance in India. The module should include legal forms of MFIs, a brief of regulatory framework and regulators, popular credit delivery models in India, major players at national level and in the regions where Utkarsh operates, etc. 3 The integration of SPM principles into the operational processes and policies of the company should also be highlighted in the revised training module. The commitment of the company towards SPM should be duly emphasised in the curriculum to portray the image of the company as responsible MFI. 4 A trainers notes should also be developed along with revised common induction training module. The trainers note should specify step by step instructions on what to tell/ask and how to deliver and what training technique/tool/training aid to use for each section of the module in order to maintain uniformity/standardisation in quality of training across all locations and trainers.
Rationale
Perceived impact
The trainees should also be aware Well informed staff of the industry they are operating Improved quality of in to get a holistic idea of the output by staff business they are in. It will help them to better understand and appreciate the work they are doing.
Since Utkarsh believes in Improved social principles of SPM and committed outlook to implement it at the company, it will only be realised when SPM is integrated in the training module, so that staff can also understand and appreciate the work they are doing. This will help Utkarsh in Improved quality of maintaining the standardisation in training quality of training and content. Better informed staff This will also help in grooming Improved staff new trainers. productivity
(b) Training Methodology No co-facilitator during training to assist lead trainer No pre-test or post test to gauge the improvement in knowledge/understanding No evaluation/feedback of training programme No ice-breakers or fillers used to break monotony Trainers dictating notes, instead of giving them any reading material. Dont take informal feedback from participants whether they under Too much lecture based training. Facilitators could have used trainees experience. The trainings at HO uses resource persons among HoDs but the same is not available at other training centres. The range of trainers is limited at training centres other than at HO.
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Recommendations on process improvements are highlighted in Table 12. Table 12: Recommendations for improvement in methodology of induction training
Action Point 1 The pedagogy should shift from purely lecture based to mix of training techniques, tools and training aids to improve the effectiveness of learning. 2 All the trainings should preferably deploy a team of two trainers, where one is a lead facilitator for a session and another acts as a cofacilitator. The co-facilitator will assist the lead facilitator to conduct the session. The role of lead facilitator and co-facilitator should keep changing from one session to another to break the monotony. This is based on best practices of conducting training 3 Introduce a system of brief test of participants at end of each day of induction training. A small test paper (mostly objective type questions) should given to each participant at end of each day and the test papers for a day should be discussed with participants at either end of the day or beginning of next day of a training. 4 Introduce a system of brief evaluation of training towards end of each induction training by its participants. A standard template of evaluation of a training programme should be developed and their scores and comments should be recorded and analysed for making improvement. 5 Ice-breaking exercise should be made compulsory to use at beginning of any induction training to put participants at ease. Similarly, fillers (exercises for fun) should also be encouraged to use to break monotony or fatigue among the participants. The training team should build an inventory of ice-breaking exercise and fillers to be used during Rationale Perceived impact It is necessary to keep the interest Improved impact of alive of the participants. It will training also improve the impact of Better skilled staff training and learning among Improved quality of trainees. output by staff The co-facilitation technique Improved impact of helps in breaking the monotony training during the training. It also improves the pace and quality of training. It also provides break to trainers during training session, so that their energy level is maintained during the training.
The brief test for each session will Improved impact of gauge the effectiveness of the training session and also help to further Better skilled staff clarify any topic, if most of the participants have not understood it. Discussing the test papers with participants will reinforce the learning or clarify the concepts/processes among them. It will help Utakrsh to take steps necessary to make improvement in various aspects of the training.
Improved impact of
training
This helps to keep the interest alive of participants throughout the training. It will also help in breaking barrier of shyness among participants that restrict their learning.
Improved impact of
training
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Action Point induction training. 6 Written notes/Handbook should be provided to all trainees instead of trainers dictating notes to participants. The handbook should be made returnable after completion of one month after the training, so that it can be used for the future batches. A nominal caution deposit against the handbook can be collected from all participating TCOs. The caution deposit will be forfeited, if a TCO fails to return the handbook after two month of completion of induction training or want to keep the copy with oneself for own reference. Similarly, if any other trainee fails to return the handbook even after two month of completion of induction training or want to keep the copy with oneself, then amount equivalent to caution deposit for TCOs will be deducted from his/her salary.
Rationale
Perceived impact
Providing handbook to Improved productivity participants will save lot of time of trainers and trainees of trainers, as there will be no requirement of dictating notes. The time saved could be used in group work, individual exercises etc. to improve the quality of participation of trainees. Moreover, handbook will help the trainees to refer in case they need any clarity or information on policies and processes covered during the induction training. System of returning handbook will save cost of printing for Utkarsh.
(c) Training Delivery Training topics and schedule are not given in advance to participants No expectation setting in the beginning and review at the end on to what extent the programme cover the expectations of the participants. No instructions on Dos and Donts No use of flip chart to show standardised processes and policies No handouts or reading materials are given to trainees. No proper adherence to scheduled break Trainers often exceeding their allotted time for the topic that disturb the entire schedule of the training. Trainers dont make proper opening and closure Weak training skills of trainers Usage of white board cluttered, small fonts, faded ink Poor voice modulation. Sometimes too loud and fast and sometimes too feeble. Trainers reading out from notes. Seems no preparedness.
Recommendations on process improvements are highlighted in Table 13. Table 13: Recommendations for improvement in delivery of induction training
Action Point 1 Make sure all the trainings begin Rationale It will help in maintaining order Perceived impact
Improved productivity
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Action Point with instructions of Dos and Donts for participants during the training. The list of Dos and Donts should be prepared in advance in on a flip chart and should be placed/hanged inside the training hall at such a place where it is easily visible for all. It should remain there during entire duration of training. Every time one violates any rule, the trainer should refer the list of rules. 2 Expectation (of participants) setting exercise should be made mandatory for all the trainings before kicking off technical sessions. The trainers should conduct this exercise in the beginning and their key expectations should be noted on a flipchart and the same should be placed/hanged on the wall of training hall. At the end of technical sessions of the training, the expectations should be reviewed by trainers as to what extent the programme has covered their expectations. 3 The training should preferably use mix of training aids, such as, LCD projector, video, flip charts, white board etc. Given the cost factor involved in using LCD projectors or overhead projectors, as the induction trainings will be held at decentralised locations, moreover, erratic power supply and high cost of installing power back-up, leave with the option of using flip chart for presentation of standardised processes and policies. The power point slides should be copied on flip charts, which can be used when LCD projector or overhead projector is not available at any location. These flip charts should be numbered and preserved safely for future use. 4 While preparing the trainers notes for induction training module, care should be taken that there is proper opening and closure process is followed for each session. While
Rationale Perceived impact during training session. Telling of trainers and trainees about the rules in advance will Improved impact of alert the participants about their training behaviour/actions. It will ensure least hindrance during the training and contribute to effective learning.
The expectation setting exercise Focus of the training will help trainers to keep the focus remain intact of the programme intact and Improved satisfaction emphasise during the training on of trainee the areas highlighted by participants. This exercise also sets clear the mind of participants of what not to expect from the training.
Usage of flip-charts is not only Improved impact of cheaper as compared to using LCD training or overhead projectors but also Improved productivity more reliable given the erratic of trainers power supply in this part of world. Usage of pre-prepared flip charts also saves time of trainers in writing on board to explain established processes and policies.
It will help participants to see a Improved impact of proper link and context of the training. session and to appreciate it better. Better skilled and It will also help participants to informed staff improve their retention of learning
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Action Point introducing a session, its link with previous session should be explained and while closing the session, the key points of the session should be first summarised and its link with following session should also be explained. 5 A pool of staff who will be involved in training delivery (either as full time or part time) should be identified and provide them training of trainers (ToT) to understand the nuances of training delivery, like, rationale of using mix of training methods, how to use them and when to use particular type of training method, voice modulation, how to use white board and flip charts, size and colours of fonts, time management, etc.
Rationale and key messages.
Perceived impact
This will improve the training skills of trainers and will be able to appreciate why things are done in a particular way and how does it impact the learning of trainees.
Improved productivity
of trainers
Improved impact of
training
(d) Training Arrangements and Logistics Seating arrangement is theatre type and not in U shape Plastic chairs are provided that are not comfortable for long-hour seating. No support platform for trainees for writing notes. No table or flap in chair provided to trainees. Overall cleanliness of the training centre is poor, especially the washrooms at the training centres is too dirty to be used.
Recommendations on process improvements are highlighted in Table 14. Table 14: Recommendations for improvement in arrangement and logistics of training
Action Point 1 Training hall should be hired that atleast accommodate 25 persons in U style seating arrangement. Theatre style seating arrangement should be done away with. The training hall should be well lit and closed so that it is free from noises and disturbances outside. 2 Basic plastic chairs should be replaced with cushioned chair and must be accompanied by either a table or flap on the chair that provides support in writing or doing exercises. Rationale U type seating arrangement is more conducive for adult learning, as it provides face to face interaction with everyone in the classroom. It facilitates participation of trainees and also helps trainers to pay individual attention to trainees. Plastic chairs are not comfortable for long-hour seating. It could be used for short meetings but not for day long or trainings of more than one day. Many studies suggest that physical discomfort Perceived impact
Improved participation
of trainees during training Improved impact of training Better skilled and informed staff
Improved impact of
training
Trainee remain more

focussed on subject of training
(36)
Action Point 3 Clean drinking water facility should be provided at desk of trainees, so that they dont have to leave classroom to drink water, especially during summers. Cleanliness of washroom at training centres should be maintained by ensuring cleaning atleast one time in a day.
Rationale Perceived impact also affects learning of a person. It will help trainees to focus Improved image as themselves on training and not caring employer get distracted because of outside Trainee remain more ambience causing discomfort. focussed on subject of training
4.2.4. On-field training process TCOs were found providing training to trainees. No structure of training and no guidelines for branch staff on how to coach. Trainers themselves were found skipping many of guidelines prescribed for CGT and group formation. No monitoring of learning of staff or quality of coaching by either HR department, Area Manager or Audit Team. As of now only Area Managers check the quality of learning of trainees but not analyse the factors as to why the learning of trainees was good or weak and to what extent quality of coaching affected the learning. No feedback is taken from trainees on content, methodology, trainers style and other aspect of training.
Recommendations on process improvements are highlighted in Table 15. Table 15: Recommendations for improvement in on-field training process
Action Point 1 Trainees should be attached with only experienced COs or BM at the branch where they are placed and under no circumstances, TCOs should be asked to coach a trainee. 2 A detailed guideline should be prepared for branch staff on how to coach a trainee on the field. Preferably a video on coaching a trainee for on-field training can be prepared. There should also be onfield demonstration on effective coaching from time to time. 3 The HR department, Area Manager and Audit Team should also take step to monitor quality of coaching by branch staff. Utkarsh could also think of incentive for branch staff if a trainee scores above cut-off marks during reassessment. Rationale TCOs themselves are in the learning stage and they are not ideal person to coach someone at this stage. Effective coaching can come from only experienced hands. In absence of any structured guidelines and demonstration, uniformity in coaching quality is difficult to ensure. Perceived impact
Improved quality of
learning Better skilled staff
Improved impact of
training
Better skilled staff
Performing quality check of on Improved quality of field coaching will ensure that training branch staff dont shirk their Ensures accountability responsibilities of coaching. of trainers Incentive policy will motivates Better skilled staff branch staff to maintain the quality standard of coaching.
(37)
Action Point 4 A system of feedback from trainees should also be introduced at the time of reassessment. The feedback should include trainees opinion and suggestions on content, methodology, trainers style and other aspect of training
Rationale This will help in improving quality of training and ensuring accountability of trainers/coach
Perceived impact
Improved quality of
training Ensures accountability of trainers Better skilled staff
4.2.5. Refresher training process Content of such trainings is not focused on building soft skill or functional skill but mostly based on discussion on topics/issues where there is problem in compliances of policies and processes or deviant behaviour by staff is found on large scale. The current structure of the programme is more of a review meeting than of training. Most of the observations for induction training on methodology, delivery, and training arrangements are also applicable to refresher training as well. Resource persons usually do not properly rehearse/prepare on how they will conduct the session and do it extempore. As a result, they often overshot their allotted time limit and other resource person keep peeping in the classroom with impatience. Feedback on individual resource person is not taken separately and also the feedback are not compiled or analysed further for making improvements.
Recommendations on process improvements are highlighted in Table 16. Table 16: Recommendations for improvement in refresher training process
Action Point 1 Develop an integrated training module on soft skills. The refresher training should more focus on softskill development rather than discussing problem areas in operations. There can be a separate forum for discussion on problem areas. 2 A pool of trainers needs to be identified and groomed by providing them ToT. These trainers can further impart soft skill trainings at various levels. Initially demonstration on training delivery can be provided to the pool of identified trainers by leading a few initial training programmes on soft skills and then gradually pass on the responsibility to the pool of trained trainers. 3 Most of the recommendations on induction training on methodology, delivery, and training Rationale Perceived impact Improvement in soft skills among Motivated staff staff is high on training need of Improved staff staff, as it helps in better coproductivity ordination among staff and clients Improved staff keep them motivated satisfaction
This will improve the training skills Improved productivity of trainers and will be able to of trainers appreciate why things are done in Improved impact of a particular way and how does it training impact the learning of trainees.
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Action Point arrangements are also applicable to refresher training as well. 4 Feedback on individual resource person should be taken separately and also the feedback should be compiled and analysed for making further improvements in the training and trainers style.
Rationale
Perceived impact
This will help in improving quality of training and ensuring accountability of trainers/coach
Improved quality of
training Ensures accountability of trainers Better skilled staff
4.2.6. On-the-job training process Utkarsh has not developed any structured training manual or guidelines for On-the-job training. There are no milestones specified (of training subjects) to be covered in a given time-frame. No monitoring by HR department on learning of staff or quality of coaching provided. TCOs are straightaway put on the job of client acquisition without proper guidance or monitoring in initial stages. This is too risky, as it may damage reputation/image of the company, if a TCO is not able to convey information in correct perspective.
Recommendations on process improvements are highlighted in Table 17. Table 17: Recommendations for improvement in on-the-job training process
Action Point 1 A proper guideline and structure with specific time-line should be developed for on-the-job training of staff at each level at each department. Rationale Perceived impact A structured approach will ensure Improved learning of standardisation in quality of staff coaching and learning. Better skilled staff Improved staff productivity 2 A separate training module on This will ensure standardisation in Improved quality of specific functional areas can be quality of coaching and learning. training. designed targeting candidates going This will also help trainers to Improved productivity to work in the same functional area. coach the trainees. of trainers Audit and IT department should Improved learning of also develop their own specific staff training module for training of new Improved staff staff. productivity 3 The HR department should also This will ensure accountability of Improved quality of take step to monitor learning of supervisor responsible for training training. new staff posted at any of staff. Improved productivity department by introducing scoring of trainers system. Utkarsh could also think of Improved learning of incentive for supervisor of a new staff staff if it scores above cut-off Improved staff marks during his/her learning productivity assessment process. 4 TCOs should be accompanied by a Putting TCOs straightaway on Improved learning of CO or BM while he/she is such jobs is too risky, as it may staff performing the task of village damage reputation of the Improved staff
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Action Point survey, group formation, CGT, house visit of clients etc.
Rationale company, if a TCO is not able to convey information in correct perspective.
Perceived impact productivity
4.2.7. Placement of staff for training More than one TCO are found posted at many of the branches and some branches have even more than two TCOs. Recommendations on process improvements are highlighted in Table 18. Table 18: Recommendations for improvement in placement of staff for training
Action Point 1 Utkarsh should frame a policy and adhere it religiously that not more than one TCO is posted at any of the branches. It should periodically check number of TCOs stationed at each of the branch. Rationale It will help BM to better focus his/her time to train a TCO. Perceived impact
Improved learning of
staff Improved staff productivity
4.3
Action plan
This is for M-CRIL to write
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S ECTION 6 S TAFF P ERFORMANCE M ANAGEMENT S YSTEM

6.1. Introduction to staff performance appraisal and promotion system at Utkarsh This section entails the policies and processes related to performance appraisal of staff, their promotion and confirmation of job. The staff performance appraisal exercise at Utkarsh is a structured process through which performance of a staff on his/her job during a specified period is assessed on pre-defined parameters. This is help primarily with the purpose to keep check on productivity and efficiency of staff as well as to get input for staff promotion exercise and assessing need of improvement in human resource quality. The promotion exercise is again a structured process at Utkarsh through which suitable staff (among existing pool of staff) are identified and pushed upward in the organisational hierarchy, usually with advanced set of responsibilities. It is done not only with the purpose to provide opportunity of professional/career growth to staff and reward their contribution to motivate them but also to fulfil staffing requirements at various levels of the organisation. The performance appraisal exercise is closely linked with promotion and confirmation exercises, as the result of performance appraisal also contributes to decision on promotion or confirmation of a staff. Though the performance appraisal process feeds to the process of promotion and confirmation, these two aspects are described here as separate processes, as purpose and persons involved in these two processes are different from each other. 6.1.1. Staff performance appraisal system The staff performance appraisal system at Utkarsh can broadly be divided into two categories, namely, (a) semi-annual performance appraisal, and (b) trainees performance evaluation. While the semi-annual staff performance appraisal exercise is relatively more elaborate and conducted en-mass at fixed times during a year, whereas, the trainees performance evaluation is a brief exercise and is undertaken whenever a trainee staff completes its training period. Eligibility criteria: Any staff (below HoD in organisational hierarchy) who had served for more than six months in his/her current position is eligible for semi-annual performance appraisal exercise. Time of undertaking the exercise: The semi-annual exercise takes place in the month of April and October, whereas, trainees performance evaluation can take place any time during a year.
6.1.2. Staff promotion exercise The staff promotion exercise at Utkarsh is also of various types and can broadly be divided into three categories, namely, (a) annual & semi-annual promotion, (b) need based promotion, and (c) vintage based promotion and confirmation of job. Eligibility criteria:
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Any staff (below HoD in organisational hierarchy) who had served for more than one year in his/her current position is eligible for semi-annual performance appraisal exercise. Time of undertaking the exercise: For the non-field staff (who are not part of either operations or MIS team), the promotion exercise is held on semi-annual basis (at fixed times), whereas, for the field-staff (members of either operations or MIS team) the promotion exercise is undertaken atleast annually (at fixed time) and could also held more than once in a year if the need of staffing at various levels arises anytime during the year. The vintage based promotion is done when a trainee staff completes its training period. The regular staff promotion exercises (annual and semi-annual) are undertaken in the months of March and October of each year, whereas, other types of promotion exercises (need based and vintage based) are organised throughout the year, as and when required. Policy of promotion Only 80% of the required number of staff at a particular level is filled through internal promotion, remaining 20% is hired from outside in order to keep a mix of fresh blood and old blood. 6.1.3. Description of staff performance appraisal system (a) Semi-Annual Performance Appraisal: It cover such staff, who have completed atleast six months of service in the company
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A Scan of HR Policies Processes of Utkarsh - 8.3.13

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A Scan of Credit Policies and Processes of Cashpor Microfinance Pvt Ltd

Niraj Kumar Independent Microfinance Consultant Gurgaon, India

A scan of HR policies and processes of Utkarsh

A scan of HR policies and processes of Utkarsh

A scan of HR policies and processes of Utkarsh

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S ECTION 2 H UMAN R ESOURCE P LANNING AND R ECRUITMENT

2,800 800 3.5 3 3 3

A scan of HR policies and processes of Utkarsh

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Company able to meet

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Action Point recruitment day).

2.3. Action plan This is for M-CRIL to write

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S ECTION 3 J OINING OF N EW S TAFF

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Contd. on next page

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Contd. on next page

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Rationale senior staff.

Reduces delay in joining

Saves staff time

3.3. Action plan This is for M-CRIL to write

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S ECTION 4 S TAFF T RAINING AND D EVELOPMENT

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Post Training Formalities

Candidates are asked to provide their

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Contd. on next page

Contd. on next page

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Post Training Formalities

Candidates undergo reassessment at

A scan of HR policies and processes of Utkarsh

Clarity on roles Better planning Improved staff

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A scan of HR policies and processes of Utkarsh

A scan of HR policies and processes of Utkarsh

Training design more

4.2.3. Induction training process

A scan of HR policies and processes of Utkarsh

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A scan of HR policies and processes of Utkarsh

Rationale and key messages.