Chapter 1: industry profile

INDUSTRY PROFILE
FMCG is an acronym for , which refer to things that we buy from

Fast Moving Consumer Goods

local supermarkets on daily basis, the things that have high turnover and are relatively cheaper.

STATUS OF FMCG SECTOR

The Indian FMCG sector is an important contributor to the country's GDP. The FMCG sector is the fourth largest sector of Indian economy. The FMCG market is estimated to treble from its current figure in the coming decade. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. With growing Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. The Indian rural market with its vast size and demand base offers a huge opportunity for investment. Rural India has a large consuming class with 41 per cent of India's middle-class and 58 per cent of the total disposable income.

This report on the Indian FMCG sectors covers all the important aspects of the Indian FMCG sector with valuable information and data to help the busy managers and investors to arrive at an informed decision. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry.

INDIA A LARGE DOMESTIC MARKET India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million.

RURAL AND URBAN POTENTIAL

Urban Population 2001-02 (mn household) Population 2009-10 (mn household) % Distribution (2001-02) Market (Towns/Villages) Universe of Outlets (mn) 53 69 28 3,768 1

Rural 135 153 72 627,000 3.3

Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the market potential is expected to expand further.

PRESENCE ACROSS VALUE CHAIN

Indian firms also have a presence across the entire value chain of the FMCG industry from supply of raw material to final processed and packaged goods, both in the personal -care products and in the food processing sector. For instance, Indian firm Amul's product portfolio includes supply of milk as well as the supply of processed Group products like cheese and butter. This makes the firms located in India more cost competitive.

INCOME DISTRIBUTION
Most Indian FMCG companies focus on urban markets for value and rural markets for volumes. The total market has expanded from US$ 17.6 billion in 1992-93 to US$ 22 billion in 1998-99 at current prices. Rural demand constituted around 52.5 per cent of the total demand in 1998-99. Hence, rural marketing has become a critical factor in boosting bottom lines. As a result, most companies' have offered low price products in convenient packaging. These contribute the majority of the sales volume. In comparison, the urban elite consume a proportionately higher value of FMCGs, but not volume. Demand for FMCG products is set to boom by almost 60 per cent by 2007 and more than 100 per cent by 2015. This will be driven by the rise in share of middle class (defined as the climbers and consuming class) from 67 per cent in 2003 to 88 per cent in 2015.

The boom in various consumer categories, further, indicates a latent demand for various product segments. For example, the upper end of very rich and a part of the consuming class indicate a small but rapidly growing segment for branded products. The middle segment, on the other hand, indicates a large market for the mass end products. The BRICs report indicates that India's per capita disposable income, currently at US$ 556 per annum, will raise to US$ 1150 by 2015 - another FMCG demand driver. Spurt in the industrial and services sector growth is also likely to boost the urban consumption demand.

EXPORTS India is one of the world's largest producers for a number of FMCG products but its exports are a very small proportion of the overall production. A total export of food processing industry was US$ 2.9 billion in 2001-02 and marine products accounted for 40 per cent of the total exports. Though the Indian companies are going global, they are focusing more on the overseas markets like Bangladesh, Pakistan, Nepal,

Middle East and the CIS countries because of the similar lifestyle and consumption habits between these countries and India. HLL, Godrej Consumer, Marico, Dabur and Vicco laboratories are amongst the top exporting companies. SECTORIAL OPPORTUNITIES According to the Ministry of Food Processing, with 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment to raise food processing levels by 8-10 per cent. In the personal care segment, the lower penetration rate also presents an untapped potential. Key sectoral opportunities are mentioned below: Staple: branded and unbranded: While the expenditure on mass-based, high volume, low margin basic foods such as wheat, wheat flour and homogenized milk is expected to increase substantially with the rise in population, there is also a market for branded staples is also expected to emerge. Investment in branded staples is likely to rise with the popularity of branded rice and flour among urban population. Group based products: India is the largest milk producer in the world, yet only 15 per cent of the milk is processed. The US$ 2.4 billion organized Group industry requires huge investment for conversion and growth. Investment opportunities exist in value-added products like desserts, puddings etc. The organized liquid milk business is in its infancy and also has large long-term growth potential. Packaged food: Only about 8-10 per cent of output is processed and consumed in packaged form, thus highlighting the huge potential for expansion of this industry. Currently, the semi processed and ready to eat packaged food segment has a size of over US$ 70 billion and is growing at 15 per cent per annum. Growth of dual income households, where both spouses are earning, has given rise to demand for instant foods, especially in urban areas. Increased health consciousness and abundant

production of quality Soya bean also indicates a growing demand for soya food segment. Personal care and hygiene: The oral care industry, especially toothpastes, remains under penetrated in India with penetration rates below 45 per cent. With rise in per capita incomes and awareness of oral hygiene, the growth potential is huge. Lower price and smaller packs are also likely to drive potential up trading. In the personal care segment, according to forecasts made by the Centre for Industrial and Economic Research (CIER), detergent demand is likely to rise to 4,180, 000 metric tonnes by 2011-12 with an annual growth rate of 7 per cent between 2006 and 2012. The demand for toilet soap is expected to grow at an annual rate of 4 per cent between 2006-12 to 870,000 metric tonnes by 2011-12. Rapid urbanization is expected to propel the demand for cosmetics to 100,000 metric tonnes by 2011-12, with an annual growth rate of 10 per cent. Beverages: The US$ 2 billion Indian tea market has been growing at 1.5 to 2 per cent annually and is likely to see a further rise as Indian consumers convert from loose tea to branded tea products. In the aerated drinks segment, the per capita consumption of soft drinks in India is 6 bottles compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines 173 and Mexico's 605. The demand for soft drink in India is expected to grow at an annual rate of 10 per cent per annum between 2006-12 with demand at 805 million cases by 2011-12. Per capita coffee consumption in India is being promoted by the coffee chains and by the emergence of instant cold coffee. According to CIER, demand for coffee is expected to rise to 535,000 metric tonnes by 2012, with an annual growth rate of 5 per cent between 2006-12.

 Edible oil: The demand for edible oil in India, according to CIER, is expected to rise to 21 million tonnes by 2011-12 with an annual growth rate of 7 per cent per annum. Confectionary: The explosion of the young age population in India will trigger a spurt in confectionary products. In the long run the industry is slated to grow at 8 to 10 per cent annually to 870,000 metric tonnes by 2011-12.

Chapter 2 : Company Profile

Gopal Group, on its way to success has established many milestones, for others to follow. Leading by example, Gopal Group, now a multi-crore business conglomerate, took its first step in 1942. Dream child of the visionary Late Shri Hari Chandji Sugandhi, the group saw light of the day at a humble shop at Old Delhi. Today, the group has grown into a multiproduct, multi-disciplinary enterprise of unprecedented strength and stature, spread across the country.
:: Gopal Group ::.

Address

339, F.I.E. , Delhi - 110092, INDIA. 011 - 43160260 contact@gopalgroup.net www.gopalgroup.net

Patpargang,

Contact No. E-mail Id Website

: : :

Leadership
Endowed with most humane and philanthropic qualities, Shri Srigopal Gupta, Chairman of the illustrious Gopal Group, is the principal driving force behind the meteoric rise of Gopal Group. A visionary leader and able entrepreneur, Shri Gupta has enriched and strengthened the Group with his sound business governance and value-driven management. His ingenious ideas and precise execution are the pillars of effective product development and market direction. While he has been

instrumental in elevating the Company to new heights, he plays a pivotal role in the Groups strategic planning, policies and corporate affairs. He also inspires the Companys unique work culture by promoting core values that focus on people, customers, innovation, quality, integrity, fun and profitability. Impending with his vibrant and versatile ideas of expansion and diversification to explore sustainable livelihood opportunities is his young and creative son, Mr. Apoorv Gupta. His passion for building the Company to a stronger and bigger conglomerate reflects in his keen interest in every facet of product development and introduction. Indeed, he is known for excellent people management and team building activities besides infusing the spirit of action and a result oriented work culture. Apoorv Gupta, a dignified management awardee heads the Sales & Marketing desk and is a man of many talents with a composed grace in Indian Music.

Vision & Mission

Human Resoureces
.:: Rise & Shine ::. Gopal Group invites you to take up the challenges and make your skills count through numerous career and training opportunities. In Gopal, we have people who are different from one another, but united by deep-rooted values and culture. Offering unlimited challenges and opportunities for personal growth with an insight to care for its budding talents build the core part of the Groups human resources culture of development and values.

10

Encouraging personal development potential to become a reality is a fundamental factor in its success. Gopal Group always encourages people to make the most of their talents and take a leading role in their own development.

Trust and Loyality

We keep our loyalty towards the consumers and the trust they place in our products with their everyday purchases at the core of the long-lasting relation that we enjoy with them. Our Company practices are based on mutual trust between colleagues, full dedication and transparency towards the Group, as well as towards all business and social stakeholders with whom we interact daily.

Respect and Resposibilty

We uphold the protection of human dignity, unconditional respect of human rights, in every operational aspect of our business. We support the abolition of the exploitation of child labour and of forced and coercive labour, within our sphere of influence and along the entire production chain, through specific legal means and close relations with the work force.

How we Operate
We are an Indian company with manufacturing and sales facilities in strategic locations. We apply exacting standards to ensure premium quality products. Besides our day to day operations of manufacturing tobacco and non-tobacco products, we are also involved in assessing our present work methods and improvising according to the changing scenario.

11

Regular training programmes keep our workforce fully informed about the latest in the industry. We contribute to community welfare through charitable activities and supporting NGOs.

The Procurement Unit

Raw material is the life & soul of an end product & we, at Gopal Group, insist on the perfect. Our highly experienced workforce, led by a skillful & experienced Procurement Manager, most responsibly chooses the best to deliver the finest. Be it tobacco based products, flavors, fragrances, essences ... we handpick best of the lot.

Work, Profit & Share

With highly specialized and technically most advanced machinery and state of the art infrastructure situated at Baddi in Himachal Pradesh and in the NCR region, the plants are regularly upgraded to enhance the work capacity of the machines. In extremely safe, hygienic, resourceful and environment friendly conditions, skillful professionals, technicians, experts and workers put in the best of their capabilities to produce highest

12

quality products.

The Processing Unit

A good raw material treated & processed by most knowledgeable & well versed professionals, results in a superb end product. Meticulously made, at our hi-tech plants, every end product is an enviable creation that stands the test of performance exceptionally well at par with the leading brands. Gopal has indeed raised the bar for niche products. Establishing quality codes for others to follow these products are looked upon as inspiration for others.

Hospitality
We have now immersed ourselves into the hospitality business also in conjunction with world famous Welcome Group Hotels. Fortune Resort Grace the new hospitality venture is the offspring of this alliance. This new resort which has come up in Mussorie deserves more than a passing mention. Surrounded by pristine hills and enchanting valley, the resort is located at the Library End of the Mall Road. Spread over an expanse of 32 acres, it offers a choice of 74 well appointed rooms, including Valley View Rooms, Luxury Suites and opulent Presidential Suite. This is a perfect place to unwind yourself and at the same time provides a unique environment for business and leisure. And this is just a beginning. More such landmark hotels are lined up to dot the Indian landscape in the hospitality circuit.

13

Fortune Resort Grace, Mussoorie Hotel Overview

Popularly known as the Queen of Hills, Mussoorie is a charming hill station, 34 kms from Dehradun, situated at an altitude of 2500 meters above sea level in the beautiful Gharwal Hills. Mussoorie is one of the most frequently visited hill stations in India. It provides excellent respite to people who want relief from the hot sultry conditions of the plains, especially since it is close enough to the capital to make just a weekend trip.

Mussoorie overlooks the sprawling Doon valley and the city of Dehradun, the gateway to the entire Garhwal. It has a rich history. Chanced upon by a British army officer Captain Young in 1827, this tiny wooded inhabitation fast turned into a Victorian resort, with its central Mall, a library and an Anglican Church. The towns immense natural beauty and pleasant climate makes it a perfect destination for a peaceful holiday with friends and family.

Nestled in this hill getaway of majestic glory, we have our Fortune Resort Grace perched cozily on a pine covered hill slope with an enchanting view of the valley. The resort is located at the Library End of the Mall Road, yet it retains the charm of a quiet country resort. This is a place for leisure, recreation, family and corporate bonding, and a select venue for conferences.

Services & Facilities

Fortune Resort Grace offers a whole range of in-room features and facilities to ensure a pleasant stay for the guests. Starting from 24-hours room service, Tea/coffee maker, Satellite 32'' LCD TV, High speed internet connectivity, Daily newspaper, Electronic weighing measure, Electronic safe, Direct dial STD and Fresh fruits in Valley View Rooms and Suites, everything has been well thought of. The resort also offers Currency exchange, Doctor on call, Valet parking, Baby sitting facility, Gymnasium, Recreation Area with a pool table, Kids Play Zone where every kid would love to spend time.

14

Power
Without power, development is not possible and we at Gopal comprehend this clearly. It is this appreciation that has spurred us to set up a Mega hydro power project in Himachal Pradesh. Once completed the company will be able to tap power generation potential in the state of Himachal and Uttarakhand and help to augment power generation. Behind, our stellar performance is the power of the people & the foresight of the management. A strong workforce which is working relentlessly to deliver this powerful vision of becoming the powerhouse in the hilldevelopment of Himachal Pradesh & Uttarakhand. With the commissioning of the project the group aims to achieve international standard of excellence in all aspects of hydropower. .:: Social Responsibility lies at the core of our business philosophy ::.

Gopal Foundation was established on 8th September, 1999. It was set up for the noble cause of imparting education. Needy and deprived children were adopted for quality education and sent to good schools. These bright little ones were picked up from poor families which were below the poverty line. Soon the Trustee realized that only education did not suffice the cause for which Gopal Foundation was established and it was decided to expand our horizon. The Foundation decided to help the government in fighting the natural calamities and man- made adverse conditions.

We donated generously towards rehabilitation of the widows of the martyrs of Kargil War in 1999. When Mother Nature turned hostile and a heart wrenching earthquake struck in Bhuj, Gujarat, in 2001, Gopal Foundation adopted an entire village and helped in 15

construction of the houses. When TSUNAMI struck and washed away the happiness from the shores of south western coastline in India in the year 2004, we helped in rehabilitating the displaced sufferers.

Kargil War in 1999 Year 2004 also saw a major expansion in the scope of our work. It was decided to fight a cause which not only takes away life but leaves the family members emotionally blank as they see their loved ones die helplessly in front of them for lack of funds to buy the costly medicines. It was decided to fight CANCER by adopting those patients who are so poor that they cannot even dream of their treatment. Not everybody can think of going to a good hospital, let alone the treatment. These patients go to hospitals such as AIIMS in the hope of being treated free. Here, no fee is charged for doctors consultation and to some extent the medicines are also free. But when it comes to costly medicines, e.g. chemotherapy drugs, even the hospital cant afford to give them to every poor and needy patient. These patients realize that they will just have to wait for the inevitable painful departure from their sufferings and their family members will have to see them going through that unbearable pain every day. These patients come not only from Delhi but from all parts of India to AIIMS. We got in touch with the Medical Superintendent of AIIMS and took up the matter with the Head of Oncology Department. A system was worked out with the doctors and

16

the Welfare Officer, wherein all the needy patients who are below the poverty line are recommended to Gopal Foundation for adoption. We not only help them with chemotherapy medicines but also counsel them thoroughly. They are introduced to the magic of Yoga which not only helps them strengthen their inner self but also helps them in fighting their disease with enhanced immunity. Till April, 2010, we registered 500 patients with us who suffer from various types of cancer viz., Breast, Lung, Brain Tumor, Cervix, Colon, Neuro Fibroma, Blood, Rectum, GIST, Ovary, Uterus, Prostate, Thyroid, Obstructive Jaundice, Non Hodgkins Lymphoma etc.

AIIMS Delhi, INDIA Various other causes are also taken up by Gopal Foundation. We help an NGO in Delhi which takes care of infants who are abandoned by or separated from their parents due to various reasons. Some of these infants are just a day old when abandoned by their mothers. This NGO tries to find their parents, if possible, otherwise after following a proper procedure hands them over to childless couples, thus giving a reason to smile not only to the couple but to the child as well. The Foundation supplies milk to this NGO every month so that these little ones are not deprived of food. There is another NGO in Delhi which runs a pre- school in the slums of South Delhi. The children of this pre -school are prepared to get admission in good private schools. This NGO not only helps in getting them admission but also makes sure that all the academic requirements of these children are also catered to. Since we feel that a child should be made self sufficient and education is the first step towards it, we help the pre -school of this NGO in every possible way. Schools run by an NGO in the slums of East Delhi and Noida are also adopted by us. All their education material requirements like, books, copies, writing material etc. and to some extent furniture are taken care of by our Foundation. The vocational training schools of these NGOs are also supported by us by providing them various equipments.

17

Gopal Foundation also helps in marrying off the daughters of poor families and gifts them utensils etc. to set up their kGopal Grouphen. Every year ten such newlyweds are supported by Gopal Foundation. We have certainly not forgotten our senior citizens. We have adopted an old age home in Delhi, where different requirements of these citizens are taken care of. Apart from all the above causes, Gopal Foundation is associated with ISKCON and helps in their GAU SEWA Abhiyan.

18

CHAPTER 3: TRAINING AND DEVELOPMENT

Training and Development
The effective functioning of any organization requires that employees learn to perform their jobs at a satisfactory level of proficiency. An effective organization wishes to have amongst its ranks individuals who are qualified to accept increasing responsibilities. So much so that organizations need to provide opportunities for the continuous development of employees not only in their present jobs, but also to develop their capabilities for other jobs for which they might later be considered. Training refers to the teaching/learning activities carried on for the primary purpose of helping members of an organization to acquire and apply the knowledge, skills, abilities and attitudes needed by that organization. Broadly speaking, training is the act of increasing the knowledge and skill of an employee for doing a particular job. Though it is true that unplanned learning through job experience helps development, the experience of most organizations is that it is advantageous to plan systematic training programmes of various types as a regular part of an adequate personnel development programme. Such programmes are definite assets in helping managers to learn correct job methods, to achieve a satisfactory level of job performance, and to acquire capabilities that would be valuable in possible future jobs. Planning and Training Activities The following steps must form the basis of any training activity: 1. Determine the training needs and objectives. 2. Translate them into programmes that meet the needs of the selected trainees. 3. Evaluate the results.

19

Training Inputs There are three basic types of inputs: skills, attitudes, and knowledge. The primary purpose of training is to establish a sound relationship between the worker and his job- the optimum man-task relationship. Such a relationship is at its best when the workers attitude to the job is right, when the workers knowledge of the job is adequate, and he has developed the necessary skills. Training activities in an industrial organization are aimed at making desired modifications in skills, attitudes and knowledge of employees so that they perform their jobs most efficiently and effectively. Skills Training activities nowadays encompass activities ranging from the acquisitions of a simple motor skill to a complex administrative one. Training an employee for a particular skill is undertaken to enable him to be more effective on the job. For instance, new workers can be trained to achieve levels of output attained by experienced older workers. Similarly existing workers whose levels of output are below par can be retrained. Attitude Through orientation (induction) programmes, organization develops attitudes in new employees, which are favorable toward the achievement of organizational goals. Training programmes in industry are aimed at moulding employee attitudes to achieve support for company activities, and to obtain better cooperation and greater loyalty. Knowledge Training aimed at imparting knowledge to employees in the organizations provides for understanding of all the problems of modern industry. This knowledge for a worker is specific to his job, and related broadly to plant, machinery, material product, and quality and standard of product. Knowledge for managerial personnel may be related to complexity of problems in organizing, planning, staffing, directing and controlling. In general, training initiated for imparting knowledge to employees should consider three aspects:

20

1. Knowledge in general about factory and work environment- job context 2. Specific knowledge related to job- job content 3. Knowledge related to quality and standards of product or quality of work.

Areas of Training
Areas of training can be classified into the following categories: 1. Training in company policies and procedures (induction training) 2. Training in particular skills. 3. Training in human relations. 4. Managerial and supervisory training. 5. Apprentice training.

Training in company policies and procedures

This is a part of the induction of a new employee. The objective is to orient new employees with the set of rules, procedures, management, organization structure, environment and products, which the firm has and/or deals with. Orientation is a continuous process aimed at the adjustment of all employees to new and changing situations. It aims to impart the facts of company rules and policy, to create attitudes of confidence in the company, prides in the products, respect for company personnel, and to provide information about needs and skills, development, quality of production and work organization. It also enables employees to get the first impression of the culture of the firm and the kind of people he will have to deal with. At no time does it allow for questioning or change of system. It, therefore, in no way contributes to the organizations growth, nor does it enhance an employees ability to contribute to the organizations growth. Induction programs are also used for in-company promotes, who have to be oriented to the demands of their requirements.

21

Induction programs are based on the philosophy that the process of initial adjustment and entry to the organization is a difficult process. Unless a conducive and supportive atmosphere facilitates it, it would leave the new entrant with several uncertainties in his mind and make his assimilation in organizational life more complex and difficult . Many organizations are conscious of this and devote considerable effort to make the initial entry phase a pleasant and cordial one.

Training In Particular Skills

Training of employees for particular skills is undertaken to enable the employee to be more effective on the job. It is a here-and-now proposition, somewhat like induction training, which does not have a very significant development aspect to it. Its aim is narrow-to guarantee a certain contribution to the job, for instance sales training and machine skills.

Human Relation Training

This is a broad category embracing many different aspects. Self-learning and inter-personnel competence can be included in this category-all concerned with generally the same theme. It stresses a concern for individual relationships, for feeling and treating people as human beings, rather than as machines. Not only is this concern and awareness in ones attitudes and behavior conducive to better work-place relations, but also to enhanced productivity. This category of training is oriented towards the development of the individual and consequently the organizations efficiency in terms of better teamwork.

Problems Solving Training

Many in-company programmes also revolve around organizational units, like divisions of branches, which generally handle a product line. The practice is to hold together all managerial personnel in a particular division/ branch from the both headquarter and the field of offices and discuss common problems and solutions across the table. This not only helps solve problems, but also serves as a forum for the exchange of ideas and information, which could be utilized in other situations.

22

Managerial and Supervisory Training

The managerial job combines both techniques and conceptual knowledge. If it is that of a specialist, it would emphasize some techniques and knowledge like operations, research, finance, production, and personnel management. If on the other hand it is a general management job, then the emphasis would be on the principles of scientific management: organizing, planning, staffing, directing and controlling.

Apprentice Training
The apprentice act 1961 was based on the philosophy of providing some technical training for unskilled people in order that their employment opportunity is enhanced, or alternatively to help them be self-employed. Industrial organizations in specified industries are required to train apprentice in proportion to their workforce in designated trades. The duration of training is one to four years.

Learning and Training

Irrespective of the type or method of training, trainer has to keep in mind some of the principles of learning or motivation, which would enhance internalization of what is taught.

Motivation
A trainee needs to have a desire to learn and benefit from the programme. If he is not interested, or is de-motivated, then the learning outcome is going to be insignificant and the company will have spent its money badly. On the other hand, being too intense about learning and outcome may result in setting over-ambitious goals for the individual.

Reinforcement
Following on the concept of motivation is that of reinforcement. For learning to take place and be internalized to the desired extent, a trainee is rewarded or given some encouragement. This reinforcement, or the acknowledgement that what has been acquired is desirable, can be either an extrinsic or intrinsic reward- external praise or some tangible reward, or the individuals feeling of a sense of progress. Current stress is on positive support and helpful behavior, even when mistakes are made.

23

Feedback
During the training process, it is useful for the trainee to be told how he is progressing. The knowledge of results is, several researchers have confirmed, an effective motivator. Constant and periodic feedback has positive effects on the trainees learning. Unless the trainee knows how close his performance comes to the desired standard, he will not have an opportunity to improve. Feedback, therefore, provides a basis for correcting oneself. Secondly, feedback helps to sustain the trainees interest in the task, or in the learning that is taking place, by bringing greater involvement with the learning process. If feedback is to be meaningful, it should follow a learning segment as quickly as possible.

Transfer of Training
The maximum use of training can be made if the trainee is able to transfer his learning to his actual work role. This is possible if elements are incorporated in the training situation from the job role, either existing or proposed. The more similar the learning situation is to the job situation, the higher the degree of transfer the trainee can expect, and hence the greater the relevance of the training programme.

Repetition
Repetition etches a pattern into our memory, e.g., when one studies for an examination, it is necessary to repeatedly go over ideas so that they can be recalled later.

Relevance
Relevance relates to the meaningful use of material, which aids learning, e.g., trainers usually explain in the overall purpose of a job to trainees before assigning them a particular task.

Training Policy
A company's training policy represents the commitment of its top management to training, and is expressed in the rules and procedures that govern or influence the standard and scope of training the organization. Training policies are necessary for the following reasons.

24

1. To highlight the firm's approach to the training function, provide guidance for design and execution, and to provide information regarding programmes to all employees. 2. Formulation of policy helps in identification of priority areas in training, and since resources are scarce, they are prioritized according to felt needs. 3. A training policy document helps to communicate the firm's intent regarding an employee's career development, and also gives the employee the opportunity to better his prospects through training.

Positive Outcomes of Training

The continued effectiveness and efficiency of an organization is to some extent dependent on the ability of its employees to produce at high levels of efficiency, and keep abreast with their changing job-role demands. Training will provide for an output in this direction. The several positive benefits of training are that: Training helps employees to learn their jobs and attain desired levels of performance speedily thus cutting costs and contributing to better utilization of machines and materials, for example in workers' categories. Training helps to reduce the cost of raw materials and products-reducing losses due to waste, poor quality products and damage to machinery-which would result if an untrained employee were to learn on his own. Employee motivation is enhanced when employees known that the firm would provide them training opportunities to increase their skills and knowledge, thus enabling them to develop and qualify for higher posts. Such practices create favorable attitudes towards the organization, which could result in better adjustment and commitment to one's work and the organization. Thus cooperation could help reduce employee turnover, absenteeism, accidents, dissatisfactions and grievances. Finally, training aids in the development of individual skills, better methods, new equipment, and sometimes new work place relationships. Such a process would also facilitate technological change by updating the versatility of employees.

25

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

Objectives of Training Methods

Training methods have a number of overlapping objectives. As stated earlier, they have to be chosen in relation to the programme design requirements. The main objectives of individual training methods could be: demonstration value, developing interest and finally, appeal to senses. However, more than one, or even all three objectives may be found in one method.

Demonstration Value
Complete demonstration of job requirements is training of a kind that enables the trainee to grasp the meaning of ideas, concepts, or procedures visually. Such a method can be used effectively as an aid to overcome the "breakdown of communication".

26

People remember things that they see and hear, much longer than they do information they receive through talks or reading, alone.

Developing Interest
One of the factors to be kept in mind in choosing a method is its ability to hold and arouse the interest of the trainee in the learning situation. Much research has been done in the field to test the effectiveness of various methods. A trainer has to consider alternative methods of presenting training material to participants in order to stimulate their interest and facilitate retention of the matter. For instance, if traditionally the matter has been presented through lectures, perhaps audiovisual methods could be used, or instead project work be assigned which would mean learning by doing or researching the subject oneself.

Appeal to Many Senses

The statement that "to see a thing once is better than to hear it a hundred times emphasizes the inadequacy of words as a means of communication. Experience indicates that almost 75 per cent of what we imbibe is through the sense of sight and the rest is through the sense of hearing, touch, smell and taste. From the trainer's point of view it would be beneficial to utilize as many of the trainee's senses as possible, in order to improve retention of learning. Application of these basic objectives or guidelines alone would not be enough. For the appropriate use of a method, problem analysis and needs identification are also necessary. The trainer has to understand and identify the problem area; what is wrong, and where is the correction needed? He has to examine whether there is a problem with the manner in which the task is done, i.e., an operational problem, or whether there is a problem with an individual or individuals, i.e., a human-relations problem. Secondly, selecting the appropriate method would be dependent on the level of the trainee in an organizations' hierarchy-is he a shop floor worker, supervisor or a manager? Finally, before selecting a training method, the trainer should keep the mind cost effectiveness.

27

Classification of Methods
Depending on the learning outcome, and the process by which it is attained, it is possible to categorize the various methods into several groups.

On-the-job-oriented Training Methods

In this cluster are included methods whose main objective is centered around the job, more specifically, learning on the job itself by a variety of methods. They embrace development through performance on the job, where organizational strength and constraints, human behavior and technological systems have full and free play. Methods, which fall into this category, are: 1. On-the-job training. 2. Job rotation. 3. Guidance and counseling. 4. Brainstorming sessions. 5. Syndicate method (working in small groups).

Simulation Methods
Real-life situations are simulated for imparting training. The methods falling in this category are: 1. Role-play. 2. Case method. 3. Management games. 4. In-basket exercise.

Role Play
The role-play method requires participants to enact roles on the basis of a written script or an oral description of a particular situation. The enactment process provides an insight and understanding of the demands and situations of the assigned role,

28

thereby facilitating empathy with another's (actual) role. The main emphasis in management training is in facilitating better understanding of interpersonal problems, and attitude change. If not handled well, however, it could degenerate a childish exercise, where, instead of focusing on the problem to be understood, the situation might be over-dramatized.

Case Method
The case is an actual situation, which is written for discussion purposes. Analysis would need problem identification, analysis of the situation and of its causes. There could be several solutions to the problem, and each of these alternatives and their implications needs to be examined. In the real world, on many occasions, a manager may not have all the relevant information with him before taking a decision. Similarly, the case method approximates this reality and in many situations decisions are taken with limited data, or what is termed decision-making under uncertainty. The managerial response in such a situation is explored and understood and learning consists of developing problem-solving skills.

Management Games
The game is built around the model of a business situation and trainees are divided into teams representing the management of competing companies. They simulate the real-life process of taking operation decisions. Decisions taken are analyzed by a computer, or manually, and a series of the implications of these decisions are fed back. The game is played in several rounds to take the time dimensions into account.

In-basket exercise
This is a simulation training technique designed around the "incoming mail" of a manager. A variety of situations are presented which would usually be dealt with by an executive in his working day. His reactions and responses are taken down in writing and then analyzed. Feedback on his decisions forces him to re-consider not only his administrative actions but also his behavioral style.

Knowledge-based methods
In this method of training, an effort is made to expose participants to concepts and theories, basic principles, and pure and applied knowledge in any subject area.

29

Basically, it is aimed at creating an awareness of the knowledge of fundamentals. The focus is essentially transmission of knowledge which has to be imbibed by the participants. The methods in this category are: 1. Lectures. 2. Seminars, workshops. 3. Educational training programmes at academic institutes. 4. Programmed instruction in which knowledge is disseminated in book form to be learnt at the individual's pace, and where feedback on the learning is a given aspect of the method. 5. Films and TV. 6. Group discussion, especially in combination with some of the above, for assimilation and integration.

Training Organization
There are several administrative aspects that have to be taken into account before launching in-house training programme, or nominating participants to external programmes.

30

In-Company/External Programmes
The company needs to formulate its thinking regarding participation in programmes offered by external agencies like educational management institutes, government institutions and consultant programmes, vis--vis conducting its own in-house programmes. Where employee numbers are small, it may not be worthwhile to set up a training establishment and conduct in-house programmes, but as the numbers increase, this options may offer a distinct possibility. There is the cost aspect to be considered: for the cost of sending a participant to an external programme, several employees could be trained within an organization. Yet, the advantage of an external programme would be a breath of fresh air through discussions with other participants and a fresh approach could be brought into the organization and its problems. The skills and techniques learnt might also be different from those offered by one's own in-house programmes.

Training Budgets
A training budget for each internal programme has to be prepared, which would include cost of facilities like training room, food, transport, guest faculty, if any, and cost of teaching materials. In fact, the cost to the organization should also include the wages and salaries of employee participants who would be temporarily pulled out of their regular jobs and sent for training. Yet, organizational requirements would necessitate their jobs being done by someone else. The reason for costing the trainee employee's salary would be that they would not be making any contribution to the company during the training period, and that this is an additional burden on the company's finances.

Evaluation of Training
Evaluation of any activity is important, since in evaluating one tries to judge the "value or worth of the activity, using the information available". What is the purpose of evaluation? Evaluation, by bringing to the fore "weaknesses and failuresstrengths and successes," helps to improve training methods. Evaluation helps management to answer the following questions The relevance of the programmes to the organization's needs-what changes if any

31

should be made in existing programmes to realign to the organization's needs. Feedback on the choice of areas of training will also need to be examined in the context of its contributions to the organization's effectiveness. Should the money continue to be spent on this activity, or another more relevant activity that will improve attainment of the organization's objectives? Reactions from trainees about the training programme can help identify its strengths and weaknesses. These reactions can be used as a base for the improvement of programmes, but those evaluating must first be definite about the aspects they are interested in investigating. An evaluation of a training method or system must also take into account the suitability of objectives. "If the objectives were inadequately formulated in the first place, even a 'good' training programme has really no chance to be effective." Objectives have to be clear-cut, must relate to needs, and make way for changes. Objectives cannot be static and need to be re-appraised frequently so that training may result in improved overall organizational efficiency. Evaluation of objectives helps to bridge the gap between needs and objectives. The Evaluation Process The most useful means of evaluating training are observations, ratings, trainee surveys and trainee interviews. Observation is concerned with observing the behavior of people in a certain situation. To be useful, it must be specific, systematic, quantitative, recorded and expert. Needless to say, observers, must be trained and have specific ideas about what they are looking for. This is the most direct method of "assessing the quality of formal training and of identifying deficiencies". The second method of evaluation is that of ratings. "Various elements of the training system should be rated independently by several qualified raters. These elements include trainees, instructors, equipment, materials, training aids and facilities." The use of rating scales requires supervised practice, as it is easy to commit errors. The third method is trainee surveys where opinions of the trainees are used for evaluation. These opinions should not be used independently, since they cannot always be relied on to be objective.

32

The fourth method is trainee interviews, whereby ideas and views that trainees might not put down on paper can be determined by "skilful questioning". This method allows for more precise information and details to be obtained and prevents ambiguity, especially in interpretation. The final method is that of collecting the observations and recommendations of instructors through surveys and interviews "to ensure that the system is consistent with the needs of the implementers of the training". Interviews with instructors will bring to the surface characteristics that instructors may feel reluctant to put down on paper.

Is Training The Best Medicine?

Imagine this: A man is having chest pains. He rush as to his doctor, tells him he is having a heart attack, and demands that he perform open-heart surgery. He obligingly agrees. It is not until after a great deal of pain and expense that he discovers it was only in digestion. When it comes to training, a similar situation happens all the time. If scrap rates are too high, productivity is too low, and employees neglect to follow standard quality procedures, they must need more training. Before rushing into the pain and expense of interrupting production to send them off to a seminar it is necessary to make sure that training is the proper solution. Just as a doctor must understand the cause of a patients symptoms before he can attempt a cure, one needs to know why employees are not meeting the companys expectations before taking action. Thats where a training-needs analysis will help. It tells how well employees are doing their jobs, where they could use some improvement and how that improvement can best he achieved. Done correctly, it can save the company from wasting a lot of time and money on inappropriate training programs.

Gathering the information

To do a valid training-needs analysis, one needs to gather as much objective data about employee performance as possible. There are many ways to collect this information, including:

33

Casual conversations Formal interviews Direct observation Work samples Written records Surveys Tests Focus groups

A professional trainer can be hired to perform an analysis but its not just a technique for trainers. Everybody should be trained in this simple process. Its a supervisors or a managers job to make sure people can do their jobs. To do training needs analysis the following steps should be followed: Study current performance: Before tying to change anything, its essential to know what is already happening. What skills and knowledge do employees already have? What tasks are they performing on their daily jobs? Define ideal performance: what standard of performance is necessary for the business and the employees to be a success? What tasks must they do? What level of accuracy or productivity should they achieve? What skills and knowledge must they have? Find the gap: What is the difference between the definition of ideal performance and what the employees are currently doing? Are there any areas that arent functioning as well as they should? Where are there opportunities for improvement? This is the performance gap that the company is trying to fill. One must look for problems or opportunities that may occur in future as well as ones that already exist. Identify the cause: Why are workers not working up to standard? Have they ever performed the job correctly? Where and when do the problems occur? Has anything changed recently that might have instigated the problem? Compare best and worst performers to find the differences in what they do.

34

When these steps have been completed one should be ready to make diagnosis, but it must be remembered that training is not the only medicine for ailing performance. Although it is often mistakenly applied as a cure- all, the only problem that training can solve is a lack of skills and knowledge. Do employees know how to do the job? Could they do it if their lives depended on it? If so, probably there is no training problem. There are many reasons why a worker might not be doing his job correctly, including unclear expectations, insufficient feedback, lack of incentive and adverse working conditions. These are all management problems that can only be improved by management changes. Too often, people see the gap and they want to just leap right in and fix it. The key is not to jump to the solution, which is assumed to be training. Understanding the situation is the first step. Then, once one understands the situation one can think about why (The problem exists). Only if its because (employees) lack skills and knowledge should training be considered as a solution.

35

TRAINING & TRAINING NEED IDENTIFICATION

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

36

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

Knowledge and Skill Level

Level Required for Effective Performance Employees Actual Level

Employees Tenure with the Firm

This ongoing process of the employee development is crucial to the retail firms ability to compete. A firm that fails to design and implement an employee Employ Employee development program ee will soon face employeesDevelopm obsolescence- the outdating of employees knowledge and skills to the point where employees Training ent can no longer perform

37

effectively. A series of activities are needed to keep employees current. The ideal situation occurs when new hires get all skills they need through employee training and then receive enough employee development to minimize the gap between their skills and the requirements of the job. Employee development program can include books and magazine subscriptions, seminars, short course, college course, and advanced degrees, as well as in-store meetings. Many companies fund part or all of the cost of employee development, but the employee must shoulder part of the responsibility for staying up to date. Increasingly, companies are looking for employees who are true students of the retail industry. As knowledge and technology continue to advance rapidly, fighting employee obsolescence will require diligence on the part of both employee and employer. While it is essential to have a training philosophy, policy and standards, it is impossible to judge whether our training is in accordance with these if there is no clear definition of training. For example, a company might have a target to give each of its employees five days of training every year. Depending on what is considered to be training, one company might say it is providing three days of training and another company might claim nine days- even though both companies employees have received exactly the same amount of training and development. An amazing number of activities might be considered as training. The following is just a selection: Classroom (trainer led), Distance learning, Computer-based training, On-the-job training, External courses, Large-scale workshops, Attendance at seminars,

38

Attending conferences, Attending communications meetings, Evening classes, Further education, Assignments, Participating in quality circles, Reading articles and books.

Some of the above activities, such as classroom training and computer-based training, would always be considered as training. Activities such as exhibitions, conferences, assignments and reading would not usually be classified as training. Clearly on-the-job training should be considered as training, but surely not all of the time spent under supervision should qualify for the employees hours of training. The conclusion we came to was that the time spent on producing usable output should not be included in the training time. In Europe and the United States, participating in quality circles would probably not be considered to be training because the prime purpose of a quality circle is thought to be solving the companys problems. Any learning that comes about would be though to be secondary. In fact, this is another indication of how Western culture misunderstood Japans quality revolution, because one of Japans main aims in starting quality circle activities was to enable the factory workers to study together and teach themselves quality control. Without a definition of training, deciding whether an activity should be recognised as training becomes very subjective. The working definition of training that I use is: Training is the transfer of defined and measurable knowledge or skills/ From this definition it can be seen that training activities should have objectives and a method for checking whether these objectives have been met. Training, defined in this way, deals only with changes in behaviour and knowledge. Some definitions include changes of attitude as part of training. I have not included attitude change within the definition because, apart from being incredibly difficult to

39

measure, it is the environment and culture of a important part to play in this, an can help create the environment in which attitudes can change, but training alone will not change anybodys long-term attitude. Many different attempts have been made to define what constitutes a training activity, and these all vary depending on the definition of training that is used. Having agreement on a definition of training is more important than which of the many good definitions you decides to use. This allows you to be aligned within your own company, and to make sensible comparisons with other companies. If you have not already done so, this would probably be a good time to consider which activities in your company should be considered as training. Training activities are those activities which are paid for by employers and take place in accordance with a programme which: Has pre-determines objective, Specifies the teaching methods, Specifies the personnel to be used, Has an implementation plan, Assess the results, Is given in premises separate from the production area unless it includes practical training. Can include correspondence courses, safety and security training and training outside of work hours.

40

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

Needs

Training

Skills and knowl edge

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

41

THE BUSINESS

Training Customer Requirements Assessment Busine ss strateg y Actions

Training as part of the business system

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

Organizational learning Business Process Organisation Development Experience

Individual learning Training Education

Training as part of the learning organisation

42

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

Every time you cycle through the training process you should re-examine your training strategy to see if it still holds up in the light of new training requirements and corporate policies. This is an example of double-loop learning. Try to make your strategy as robust as possible, and only change strategies when there are significant

43

business, social and environmental changes. If your strategy is really robust you will find that you can respond to many changes by adjusting your tactics rather than throwing aways your strategy. It is difficult but essential to find the right balance between constantly chopping and changing strategies, and sticking with a useless and outmoded strategy. Here I will be covering two steps of the training process: identify needs, Evaluate needs.

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

44

NEEDS IDENTIFICATION
Needs identification has to balance corporate demands, policies and strategies as well as individual and organisational requirements. Figure outlines a process that balances these requirements. It shows that corporate policies and strategies should be the umbrella under which individual and organisational training needs are identified. This helps to ensure alignment of training activities with the business direction.

Collect corporate policies and strategies

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

45

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

Identify business needs Identify individual needs

(appraisals, requests, counseling)

Identify departmental needs and skills for each job Identify affected individuals

Identify mandatory training

Enter potential needs on training records Produce training requirement reports

Start by reading your companys policies on training and development, reviewing the companys vision and understanding the current goals and objectives.

Identify mandatory training

Company policy dictates which employee groups are required to undergo prescribed courses. Some courses, such as induction training and total quality management, are an integral part of companys culture so all new employees have to attend this training. Company strategy may also require all personnel to go through specified forms of training in a relatively short period. Examples of this kind of training are: equal opportunities, empowerment, harassment, financial responsibility, new measurement systems (e.g. economic value added),

46

New legal requirements.

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

The training forum comprises training managers and other interested parties who meet to discuss training plans. They also identify opportunities for sharing resources. A forum is particularly useful when there are several, dispersed training departments within a company. The forum would normally need to meet twice a year: the first time to understand both corporate requirements and local issues; the second meeting to review draft training plans. Figure shows typical timings for the two training forum meetings. MAY
Overall Requirements Departmental Requirements Forum Meeting (Preplanning)

JULY/AUGUST
Departmental training plans prepared

OCTOBER
Forum Meeting (Plan review)

Training plan prepared

47

Schedule for training forum meetings

Timing of these forum meetings is critical and depends on which month is the start of the organisations financial year. The output of the second meeting needs to be available for inclusion in the annual business plan. Individual development plans should be completed before the draft department training plans are put together. The training plans will be based on guesswork if the development plans are not available. If the development plans are available too early, the training plan could be out of time by up to six months.

Identify individual needs

Identifying training needs via business requirements is a top-down approach which satisfies the need for training to be in alignment with the business direction. If we were only to use this approach, the coverage would be too broad to pick up individual development requirement. We also need to consider bottom-up training requests and to make sure that both sources of training requirements complement each other. Individual training requirements come either from direct requests or as a result of appraisal discussions. Because these development plans are always up to date, the training needs analysis can be done at any time of the year. The training administrator can request copies of the current development plan when the needs analysis has to be done.

Identify departmental needs

So far we have seen how training departments can be aligned with each other and with the corporate business direction. We have also seen how individual development requirements can be identified. We now need to see how the detailed departmental training needs are identified. The processes already described should ensure that the department's raining demands are based on corporate or company business needs and requirements. The individuals requirements give us a picture of the demand within a department but not necessarily the need. in fact, the process for identifying departmental needs is very similar to the

48

process for identifying need at the corporate level. Each department should assess where it is. The department should have a vision, a mission and a strategy for realizing the vision.

Identify skills and training required for each job

The department's mission, and the work processes the company uses, determine the jobs the department needs to produce its products and services. Each job has an associated set of skills. New jobs required new skills. In its simplest form, identifying the training required for each job involves: 1. Identifying the skills required to do a job. 2. Comparing the required skills to the current skills level of the people who will be doing the job. It is training's function to bridge the gap between current and required skills. The skills and knowledge required for every job should be documented. You should also document the courses that a representative person will need to reach the required skills level. This makes it easier to select the correct courses. A representative person is the type of person you would normally employ to do the job. The basis of identifying and documenting the required skills is the 'job description'. a job description should include the tasks that have to be performed and the outputs that have to be produced by the job holder. Outputs are products or services that ate handed on to someone else. An output should have a standard or specification attached to it so that the quality of the output can be measured. The next step is to prepare a 'person specification' from the job description. A person specification describes the ideal person to fill the job. It is a profile of the required personal skills and characteristics. These skills and characteristics are also known as competencies. For job descriptions which cover a large number of employees it is worth producing a 'training specification matrix'. This matrix describes the training courses that correlate to the skills described in the person specification.

49

You shouldn't be surprised if all this sounds rather familiar. It is exactly the same as the recruitment processes the only difference being that we are developing existing people to fit the person specification rather than recruiting the 'ideal' person. If you are recruiting to fill a vacancy, you may not be able to find anybody who fits the person description. You might also want to give people who do not yet meet the person specification a chance to work at a higher level. In such cases you will need to provide additional training to bring these people to the required level.

Identify affected individuals

Arising out of your analysis of corporate policies, mandatory training, business needs and job skills requirements, you will be able to identify which groups of employees will need what training. For example, all new managers will need training on the basics of management, and all electronics assembly people will need training on electrostatic protection. Effective training processes need to be managed at the level of the individual, so the next step is to identify those individuals who are part of the group which needs the training. This task is make a great deal simpler by computerized personnel and training records. If each person's job is given a job code, the computer can print out a report on the people who have a particular type of job and have yet to receive the required training. This task if make even easier if the personnel and training records are part of the same database. If you have separate records, you will need to update the training database every time someone joins, leaves or changes jobs.

Enter potential needs on training records

A training record should not only list the courses a person has attended but also the training a person needs. It is easier to prepare a training plan if the record gives a range of dates for when the training is required. The potential need can be in the form of either a course or a skill. It is important that the training record is a live reflection of current training requirements. It should be revised any time a new training requirement is identified. This can be after appraisal, when a training request form is received or after an individual has attended an assessment centre. This means that an up-to-date training plan can be pulled off the system at any time of the year.

50

Produce training requirement reports

A training record shows the training that individuals have completed and the training that they need to do. The next step is to sift through all the training requirements so you can evaluate the needs and estimate the amount of training that needs to be done. This can be done manfully, but it is much quicker if you have computerized training records. A computer can produce training requirement reports that list: All the people who have requested a particular course, All the people who need a particular skill, The amount and type of training requested by a particular organization.

Needs evaluation
All training requests need to be validated to ensure the training is both appropriate and necessary. The amount of effort and time required to validate the training requirements depends on the quality of the input received. The best time to evaluate training needs is when the needs are being identified. This is why it is worth spending the time to run development open days and to train managers in development needs analysis. In an ideal situation the training administrators should only need to perform a quick request.

51

FIG:- PROCESS OF EVALUATING TRAINING NEEDS

Check individuals have not previously been trained Check that training is an appropriate solution Check queries with managers Find alternative to training Prepare draft training plan Estimate impact of training load
Discuss draft plan with organization heads and human resource managers

52

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

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

53

What do the estimated hours of training per person mean in terms of people being away from the workplace?

What are the expected short-term penalties, in increased production times and costs, compared with the long term benefits?

How many people can you afford to have absent from one department at the same time?

What other claims are there on the budget you need to deliver the training plan?

Discuss draft plan with organization heads and human resource managers Considering the impact of the training puts you in a good position for discussing the draft plan with senior management, departmental managers and human resource managers. The purpose of this step is to get buy-in' from the stakeholders before you go public with the final plan. It is far better to deal with 'fatal flaws' and objections at this stage than later on in the training cycle. You can discuss what the demand and training load mean to avoid nasty surprises later in the year. You can get agreement to the proposed budget. you can discuss issues. You can discuss whether all the requested training is appropriate.

54

CHAPTER 4: METHODOLOGY
OBJECTIVE OF THE STUDY
The objective of my study is to examine the training and development process being followed by Gopal Group. To identify functional skill areas of personnel, for more effective contribution to the organization. To provide platforms for professional growth and exploration leading to overall improved organizational health and quality of life. To develop human resources in consonance with broader corporate horizon and long-range vision of the organization. To study the various Training & Development activities undertaken by Gopal Group. To study the Training methodology adopted by Gopal Group. To study the effectiveness of Training provided by Gopal Group.

55

PURPOSE OF THE STUDY

Never before has the rapid increase in new knowledge and technology and in the base of change and itself demanded a learning response as great as what is now required to remain competitive. Today individuals and organizations must become continuous learners to survive and hence it is not surprising to find that most successful organisations operate in a continuous learning mode. The challenge of globalization, technological innovation increasing competition and growth through expansion, diversification and acquisition has had a wide-ranging and far reaching impact on HRD. There is a need for a continuous process that aims at providing fresh knowledge and skill inputs to the employees so as to ensure the development of their competencies, dynamism, motivation and effectiveness in a systematic and planned way, thereby improving the productivity and overall organizational effectiveness. As a result, training and development activities have acquired great significance and are now firmly centre-stage in most of the organizations. Hence it can be said that with the advent of free market economy rapid change in the environment, training and development activities have assumed an importance never before witnessed in Indian corporate history.

56

SCOPE OF THE STUDY

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

57

RESERCH METHODOLOGY
The information required for this project study is collected both through the primary as well as secondary source of data. Tools for Data Collection Primary sources of data Questionnaire Questionnaire method for primary data collection is being used to collect information that is relevant for the objectives of the study. The questionnaire is mix of both open as well as close-ended questions and questionnaire consist of 9 questions. Basis of Questionnaire The questionnaire is made on the basis of the following parameters. These are: Quantity: It includes questions, which voice employees concerns regarding the number of training hours spent by them. Quality: Quality implies the kind of training that is imparted to the employees, how it is done and what kinds of feedback methods are given. Importance to Training: This includes questions from which we get to know whether the emphasis on training is laid down by the departmental heads, training managers, HR Head or the employees. Effectiveness and Efficiency of Training: This includes questions related to whether the training imparted to employees in different departments is effective and efficient. Sample Size 30 Employees of Gopal Group Data Analyis - Statistical Tools to be used i) ii) Pie charts & Bar Charts Histograms

58

Secondary Sources of Data A mixture of books, journals, case studies, handouts and Webster will be used to gain a clear understanding of the objectives of the project study. Limitations Time is the biggest constraint as many times it is not be possible to meet HR Managers and staff members to collect such information.

There may be biases on the part of the Managers and Staff while providing the information. This is not directly affect the study but it has some impact on the conclusions.

The data collected may not be up to mark as related to the present market situation. The situation is handled with care to a large extent but there can be some mistakes on my part.

Some of the respondents were not willing to provide information on their organisation.

All efforts are made to get all the relevant information's required for this study and presented in this project.

59

CHAPTER 5 DATA ANALYSIS

DATA ANALYSIS AND INTERPRETATION 1. Does Regular training sessions are arranged in your organization? (a)Yes (b) No

Yes No TABLE 1

100 0

TRAINING SESSION
0%

Yes No

100%

FIGURE 1

INTERPRETATION: - According to all employees training sessions are arranged in their organization.

60

2. In your company which of the following training methods are preferred :(a) On the job (c) Any other (b) Off the job

On the job Off the job Any other TABLE 2

60 25 15

TRAINING METHODS
15%

On the job Off the job 25% 60% Any other

FIGURE 2

INTERPRETATION: - 60% on the job training methods are used while 25% off the job methods and 15% other methods.

61

3. After attending such programmes do you feel change in your :(a) Knowledge (c) Quality of work (b) Skill (d) All of the above

Knowledge Skill Quality of work All of the above TABLE 3

30 10 10 50

CHANGES FELT AFTER THE PROGRAMMES

30%

Knowledge Skill
50%

Quality of work All of the above

10% 10%

FIGURE 3

INTERPRETATION: - 30% of employees feel change in their knowledge, 10% in their skills, 10% in quality of work and 50% in all of the above.

4. How many training programmes you have attended within one year?

62

(a) Less than 2 (c) Less than 10

(b) Less than 5

Less than 2 Less than 5 Less than 10 TABLE 4

30 30 40

TRAINING PROGRAMMES ATTENDED IN A YEAR

30% 40%
Less than 2 Less than 5 Less than 10

30%

FIGURE 4

INTERPRETATION: - 30% of employees have attended less than 2 training programmes in a year, other 30% have attended less than 5 and 40% have attended less than 10 programmes.

63

5. What was the impact of training? (a) Increased morale (c) Both (b) Increased speed of work

Increased morale Increased speed of work Both TABLE 5

10 10 80

INPACT OF TRAINING
10% 10% Increased morale Increased speed of work Both

80%

FIGURE 5

INTERPRETATION: - 10% of employees feel change in their morale, 10% feel change in their speed of work while 80% feel change both in their morale and speed of work.

64

6. How many promotion you have had after your training? (a) One (c) No promotion (b) More than one

One More than one No promotion TABLE 6

20 70 10

PROMOTIONS AFTER TRAINING

10%

20%

One More than one No promotion

70%

FIGURE 6

INTERPRETATION: - 20% of employees have got only one promotion after attending training, 70% have got more than on promotion while 10% of employees have not been promoted.

65

7. Do you agree that the programme would have been more beneficial if some more background material would have been sent in advance? (a) Strongly agree (c) Difficult to say (b) Agree (d) Not at all

Strongly agree Agree Difficult to say Not at all TABLE 7

70 10 15 5

BENEFIT OF BACKGROUND MATERIAL

5% 15%

Strongly agree Agree

10%

Difficult to say Not at all

70%

FIGURE 7

INTERPRETATION: - 70% of employees strongly agree, 10% of employees agree, 15% of employees feel that it is difficult to say, 5% feel no use of background material.

66

8. Do you feel training also contributes to personal growth of an employee? (a) Yes (b) No

Yes No TABLE 8

95 5

CONTIBUTION TO PERSONAL GROWTH

5%

Yes No

95%

FIGURE 8

INTERPRETATION: - 95% of employees feel that training programmes contribute to their personal growth while 5% feel that it does not contribute to their personal growth.

9. Do you feel training programs helped the company to achieve its objectives?

67

(a) Yes

(b) No

Yes No

100 0

TABLE 9

CONTRIBUTION TO ORGANIZATION'S OBJECTIVE

0%

Yes No

100%

FIGURE 9

INTERPRETATION: - 100% employees feel that training programs helped the company to achieve its objectives.

10. How well the programme was organized? (a) Very badly (b) Badly

68

(c) Well (e) Exceptionally well

(d) Very well

Very badly Badly Well Very well Exceptionally well TABLE 10

0 5 60 25 10

ORGANIZATION OF TRAINING PROGRAMMES

0% 10% 5%

Very badly
25%

Badly Well Very well

60%

Exceptionally well

FIGURE 10

INTERPRETATION: - 0% of employees feel that the training programme was very badly organized, 5% of employees feel that it was badly organized, 60% feel that it was well organized, 25% feel that it was very well organized while 10% feel that the training programme was exceptionally well organized.

FINDINGS

69

The data which we analyzed from the questionnaire of Mother Group has the following findings: 1) 50% of employees feel change in their knowledge; skills and quality of work collectively while 30% in their knowledge, 10% in their skills and 10% in their quality of work. 2) 80% of employees have increased their morale and speed of work, 10% of employees have only increased their morale while remaining 10% increased their speed of work after attending training programmes. 3) 70% of employees have been promoted more than ones after attending training programmes. 4) 70% of employees strongly agree with the fact that training sessions would be more beneficial if, some background material is provided to them. 5) 95% of employees think that training contributes to their personal growth.

70

Suggestions
This organization is working in the very efficient manner than any other organizations. Still I would like to give some suggestions to them. During my observation, I think no matter is to suggest Gopal Group because its marketing mgt. & production mgt. are very effective & popular. But, one thing I like to suggest that Gopal Group should increase its products and production. If firm feel that the Suggestions are suitable then firm should be implemented as fast as possible.

71

Conclusion
Finally I have prepared a report on Gopal Group Here I spent my ten days (Daily one hours) and had taken visit of whole unit. I can conclude that the unit has all four departments and the superior-subordinates relationship can be observed. In this organization the best thing coordination and co-operation among all departments which is very essential and makes the communication effective which I liked most I think only these two secrets for the success of this organization. And I am thinking that if these would remain as a same the day is not far away that this will become best Group in Gujarat. I am very thankful to all officers, workers, and asst. manager who gave me the information by spending their valuable time.

72

Bibliography
This Groups authority gives me suggestions and information about project.

In preparation of this report, I have used below books also.

Principles & Practice of Management Forms of business organization - prof.s.p.shah - Dr.Paresh shah - Prof. A.A.purohit L.M. Prasad

www.gopalgroup.com

73

Questionnaire
Name: ____________________________________ Profession: _________________________________ Duration: ___________________________________ E-mail: _____________________________________ Q1: What are the current responsibilities and duties that your job involves? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___ Q2: Why do you feel the need for a training and development program? a) For better prospects b) To evaluate other streams in which you can test your skill c) For more challenging office duties d) For a rounded and holistic approach toward work e) All of the above Q3: What would you consider to be your area of expertise, and your particular skill set that distinguishes you from your colleagues? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___

74

Q4: Are you satisfied with your current job and your current position? a) Yes b) No c) Not sure Q5: Do you think that your current job has explored your potential to the full? What are the changes that you would like to make to your current work situation? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___ Q7: How do you define success in a job? What would you consider to be essential to a training program of this sort? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___ Q8: What are the benefits that you expect to gain from this training and development program? What additions would you have made to this program? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___ Q9: Would you be willing to participate in such a program again? a) Yes definitely b) No c) Not sure

75

Name:

________________________________________________________________

Position:

________________________________________________________________

Department:

________________________________________________________________

Please explain your job duties

________________________________________________________________ ________________________________________________________________

________________________________________________________________ ________________________________________________________________

What are your goals and objectives?

________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

What skills set you apart from your colleagues?

________________________________________________________________ ________________________________________________________________ ________________________________________________________________

Do you recognize any need for further training and development in the following areas? (Please tick where applicable)

76

Job coaching __

Delegated tasks __

Recruitment procedures __

Presentation assignments __

nternal training programs __

Seminars and other external training programs __

What other means can be used for developing better skills and knowledge?

77