A

LIVE PROJECT ON

A STUDY OF ESTIMATING BUDGET FOR

TRAINING NEEDS IN AN ORGANISATION
AT
Tempsens Instrument (India) Pvt. Ltd

: B-188 A, Road No 5, Madri Industrial Area,

Madri, Udaipur-313003 (Raj.)

PIONEER INSTITUTE OF MANAGEMENT

(Affiliated to RTU KOTA)

Submitted to: - Submitted by:-

Mrs. PREETI SHIKHA SONI
 A Study of estimating budget for training
need in an Organisation.

Organisation : Tempsens Instrument (India) Pvt.

Ltd.

Address : B-188 A, Road No 5, Madri Industrial

Area,
Madri, Udaipur-313003 (Raj.)

Year of establishment : 1980

Product : Temperature Measuring Instruments

(Thermocouple & RTD’s)

Group Chairman : Mr. Virendra Prakash Rathi.

Other Key Person : Mr. Vinay Rathi

: Mr. P.S. Talesara
: Mr. C.P. Talesara
: Mr. N.K. Pande.

Turnover : 45 Corers in Last Financial Year

 Acknowledgement
I thereby take a golden opportunity to express my grateful gratitude
and sincere thanks to Mr. V.P. Rathi for their special concern, blessings and for
providing all required facilities needed for the completion of the training. I am
hearty grateful to MR. P. Bhattacharya who was my training guide during the
period.
 Training
A well constructed training needs analysis process can help an
organization in many ways - from assisting with training vendor selection
and budgeting, improving employee retention levels, and enhancing
overall staff satisfaction. Yet before Management commit to investing in a
training needs analysis project, they must first understand the close link
between staff training initiatives and bottom line performance.

Choose of Training
While training is generally seen to be a 'good thing', it is all too easy to
send someone on an expensive IT training course without being sure that
the course is worthwhile, or even that it is the right course for the person.

So how to decide what training needs you have? The answer is to do some
training needs analysis.

The starting point is the needs of your organization (aims, objectives, and
work plan) and the needs of the individual worker. The aim is to identify
gaps between what staff needs to know in order to do their job, and what
they actually know. Go carefully here, you don't want to put people on the
defensive and make them feel bad about their lack of IT skills: rather
approach the issue as an opportunity to improve staff's knowledge in
order that they can do their job quicker and easier.

So how to find out what staff need to know? You can start with a checklist
for each bit of in use, and use a questionnaire to find out where the gaps
are. You may have to do a bit of brainstorming to make sure you've
covered the main points, don't aim for perfection: the questionnaire itself
will uncover things you haven't thought of.
The questionnaires included below are a sample of what can be done. You
can adapt this for your own purposes, but do keep it simple. The main aim
is to engage staff in discussion about their needs and areas for
development.
Having circulated the questionnaire you can correlate the answers and
begin to assess the priorities for training and think how to meet these
needs. You may send staff on external training courses, you may want to
do some more informal in-house training, or bring in a trainer for a
tailored course. Whatever option you choose, the results of the TNA will
set your goals for the training sessions. It will help select the right course,
and set the standard by which you can evaluate its usefulness.

Budget Analysts
Nature of the Work
Budget analysts help organizations allocate their financial resources. They
develop, analyze, and execute budgets, as well as estimate future
financial needs for private businesses, nonprofit organizations, and
government agencies. In private sector firms, a budget analyst's main
responsibility is to examine the budget and seek new ways to improve
efficiency and increase profits. In nonprofit and governmental
organizations, which usually are not concerned with profits, analysts try to
find the most efficient way to distribute funds and other resources among
various departments and programs.
In addition to managing an organization's budget, analysts are often
involved in program performance evaluation, policy analysis, and the
drafting of budget-related legislation. At times, they also conduct training
sessions for company or government personnel regarding new budget
procedures.

At the beginning of each budget cycle, managers and department heads

submit operational and financial proposals to budget analysts for review.
These plans outline the organization's programs, estimate the financial
needs of these programs, and propose funding initiatives to meet those
needs. Analysts then examine these budget estimates and proposals for
completeness, accuracy, and conformance with established procedures,
regulations, and organizational objectives. Sometimes they employ cost-
benefit analyses to review financial requests, assess program tradeoffs,
and explore alternative funding methods. They also examine past budgets
and research economic and financial developments that affect the
organization's income and expenditures.

After the initial review process, budget analysts consolidate individual

departmental budgets into operating and capital budget summaries.
These summaries contain statements that argue for or against funding
requests. Budget summaries are then submitted to senior management,
or as is often the case in government organizations, to appointed or
elected officials. Budget analysts then help the chief operating officer,
agency head, or other top managers analyze the proposed plan and
devise possible alternatives if the projected results are unsatisfactory. The
final decision to approve the budget usually is made by the organization
head in a private firm, or by elected officials, such as State legislators, in
government.

Throughout the year, analysts periodically monitor the budget by

reviewing reports and accounting records to determine if allocated funds
have been spent as specified. If deviations appear between the approved
budget and actual spending, budget analysts may write a report
explaining the variations and recommending revised procedures. To avoid
or alleviate deficits, budget analysts may recommend program cuts or a
reallocation of excess funds. They also inform program managers and
others within the organization of the status and availability of funds in
different accounts.

Data and statistical analysis software has greatly increased the amount of
data and information that budget analysts can compile, review, and
produce. Analysts use spreadsheet, database, and financial analysis
software to improve their understanding of different budgeting options
and to provide accurate, up-to-date information to agency leaders. In
addition, many organizations are beginning to incorporate Enterprise
Resource Planning (ERP) programs into their budget-making process. ERP
programs can consolidate all of an organization’s operating information
into a single computer system, which helps analysts estimate the effects
that a budget alteration will have on each part of an organization.

Work environment. Budget analysts usually work in a comfortable office

setting. They spend the majority of their time working independently,
compiling and analyzing data and preparing budget proposals. Some
budget analysts travel to obtain budget details first-hand or to personally
verify funding allocation.
The schedules of budget analysts vary throughout the budget cycle, and
many are required to work additional hours during the initial development,
mid-year reviews, and final reviews of budgets. The pressures of deadlines
and tight work schedules can be stressful. In 2008, about 48 percent of
budget analysts worked 40 hours per week, while about 11 percent
worked more than 50 hours per week.

Budget analysts help organizations determine the best use of financial resources.
 Benefit from this course?
This course is valuable for the following individuals:
• Project and program managers new to budget estimation, or who need
a refresher
• Program managers who need to make high-level strategic decisions
about which projects to fund
• Department managers new to budget estimation or those who need a
refresher
• Small business owners who need high-level budget estimates to
determine strategic direction
• Individual contributors who need to estimate their own piece of a
project, program or department budget

Benefits:-

A well constructed training needs analysis process can

help an organisation in many ways - from assisting with
training vendor selection and budgeting, improving
employee retention levels, and enhancing overall staff
satisfaction. Yet before Management commit to investing in
a training needs analysis project, they must first
understand the close link between staff training initiatives
and bottom line performance.

To most organisations, the benefits of investing in ongoing

staff training are clear. They include:

• Process improvements: reduced duplication of

effort, less time spent correcting mistakes, faster
access to information, etc.

• Cost savings: lower staff turnover, lower

recruitment costs; reduction in bad debts; reduced
customer support calls; reduced help desk calls;
reduced need for supervision; reduced downtime;
 increased staff productivity; fewer machine
breakdowns; lower maintenance costs, etc.

• Improved profitability: increased sales; more

referrals due to better customer service; new product
ideas; improved customer satisfaction and retention,
etc.

• Performance improvement: in quality, quantity,

speed, safety, problem solving, etc.

• Behavioural improvements: in attitude, ethics,

motivation, leadership, communication, reduced staff
conflict, etc.

• Increased staff satisfaction: Well trained staff

tends to be happier, stay longer, and are more loyal.
Furthermore, research undertaken to uncover the financial impact to an
organisation of investing in staff training shows a clear and quantifiable
link between an above average investment in staff training and superior
bottom line performance:

• Based on the training investments of 575 companies during a 3-year

period, researchers found that firms investing the most in training
and development (measured by total investment per employee and
percentage of total gross payroll) yielded a 36.9% total shareholder
return compared with the 25.5% weighted return for the S&P 500
index for the same period. [1]

• Firms that invest $1,500 per employee in training (per year)

compared with those that spend $125 experience an average of
24% higher gross profit margins and 218% higher revenue per
employee. [2]

• Just a 2% increase in productivity has been shown to net a 100%

return on investment in training. [3]
 • A Louis Harris and Associates poll reports that among employees
with "poor" training opportunities, 41% planned to leave within a
year, whereas of those who considered their company's training
opportunities to be "excellent", only 12% planned to leave within
the same period.

So, if we accept the findings above that support the case for investing in a
formal staff training program, how does one go about identifying staff
training requirements and putting a suitable program in place?

Enter The Staff Skills Audit:

If a company's strategic plan involves doubling the workforce size within 3
years and opening two completely new divisions during that period, then
you would hope that the company's HR Management team have a good
handle on what skills the company currently has, and what new skills it
needs to obtain in order for the company to meet its business objectives.
As such, a staff skills audit (uncovering current situation) and training
needs analysis (guiding future direction) is a vital first step in obtaining
company-wide quantitative data on what skills an organization’s
workforce currently has, and (based on the company's business
objectives) where the skills gaps lie.

Whilst conducting face-to-face meetings with a select few staff members

to discuss training requirements, or ensuring training needs are raised
with staff at their annual performance reviews can both be a worthwhile
exercise, neither approach will give you an accurate company-wide
picture of the organization’s skills status and future training requirements
at one point in time. As such, an annual or bi-annual online staff training
needs survey is becoming an increasingly popular approach to address
this requirement.

When assessed against the alternatives of paper-based or face-to-face

training needs analysis surveys, we find the online approach has a
number of clear advantages. These include:

1. Speed and ease of reporting: online survey results are generated

instantly, and anyone given authorization can access the results from any
web browser in the World, at any time, with the data securely held on
encrypted servers. If the same survey is used results can also be
compared from month to month, or year to year to help spot trends and
assist with budgeting and planning. The online approach also saves
significant time with distributing and administering the survey as a survey
link is simply e-mailed to employees.

2. Data entry time/expense/errors: the online survey quickly stores

the exact data and scoring entered by each employee. Management's
data entry requirement is removed.

3. High cost: compared with the paper or face-to-face alternatives, the

online TNA process has been shown to cost up to 80% less, and reduce
decision making time by up to 90%.

4. Consistency: when a decentralized, verbal training needs analysis

system is replaced by a centralized online process, the training survey
issued is the same for all employees and comparison of like-for-like results
made easy.

5. Interviewer bias or interpretation errors: the 'interview' is in the

form of an online survey and what the employee types is exactly what HR
report on.

Once the company-wide survey has been conducted, the next steps in the
training strategy development process include:
 1. Analyse the survey results.

2. Create a staff training profile.

3. Develop a training development plan.

4. Communicate the training development plan to all employees.

5. Implement the training.

6. Evaluate the training effectiveness. [4]

It is recommended that this process be conducted on a 12 monthly cycle

at a minimum. In short, a well constructed skills audit and training needs
analysis process will provide a fast and accurate snapshot of workforce
training requirements, assist with training vendor selection and
budgeting, and ultimately help improve employee retention levels and
overall staff satisfaction.