19/11/2010

TRAINING: A PANACEA OF ORGANIZATION SURVIVAL?

Group Members: Submitted to:

ANIL KUMAR SHAKYA MRS. ANSHU MAM UIBM C.S.J.M.U. KANPUR(MBA FT)

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TRAINING DEFINED : It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees.

It’s not what you want in life, but it’s knowing how to reach it.It’s not where you want to go, but it’s knowing how to get thereIt’s not how high you want to rise, but it’s knowing how to take off

It may not be quite the outcome you were aiming for, but it will be an outcome

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It’s not what you dream of doing, but it’s having the

knowledge to do it.

It's not a set of goals, but it’s more like a vision.

It’s not the goal you set, but it’s what you

need to achieve it.

Training is about the acquisition of

knowledge, skills, and abilities

through professional development.

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Importance's of training in the organization :

Optimum Utilization of Human Resources –

Training and Development helps in optimizing the

utilization of human resource that further helps the

employee to achieve the organizational goals as well

as their individual goals.

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Development of Human Resources - Training

and Development helps to provide an opportunity and

broad structure for the development of human resources'

technical and behavioral skills in an organization. It also

helps the employees in attaining personal growth.

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Development of skills of employees - Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons human intellect and an overall personality of the employees.

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Training in Organization: A Developmental Perspective

According to the recent review by Harvard Business Review,

there is a direct link between training investment of the

companies and the market capitalization. Those companies

with higher training investment had higher market

capitalization. It clearly indicates that the companies which

have successfully implemented training programs have been

able to deliver customer goals with effective results.

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Increased role of training in different sectors :

Training Programs in Retail/FMCG Sector

A look at the statistics shows that the retail sector in India is worth USD 394 billion and is growing at the rate of 30% annually. An ICRIER study has found that retailing ($180 billion) contributes to 10 per cent of GDP and employs 7 per cent (21 million) of the workforce some of the training programs that are given in the retail sector are:

* Sales Training * On-the-Job Training* Seminars/Workshops * Customer Relationship Management

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* Online Course* Group Study* Computer-Based Training* Self-Directed Training

Training programs at IT industry: The Indian IT sector is growing at a very fast pace and is expected to earn a revenue of US $87 billion by 2008. In 2006, it has earned revenue of about US $ 40 billion with a growth rate of 30%. IT sector is expected to generate 2.3 million jobs by 2010, according to NASSCOM (National Association of Software and Service Companies).

With this rapid expansion of IT sector and coming up of major players and new technologies like SAP, the need of human resource development has increased. 04/07/2319/11/2010 9

Training Courses in BPO Sector:* Call Centre Management* Advanced Interpersonal Communication* Business Communication* Accent neutralization* Customer Relationship Management* E-mail Etiquette* Selling over the Phone* Telephone Etiquette* Cross-cultural Training* Computer Based Training Methods* E-learning* CD-ROM-based* Lectures* Discussions

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Training programs at Pharmaceuticals industry: India Pharmaceutical market is valued at about US $8 billion and is expected to reach to US $12 billion by 2010. Indian pharmaceutical market is 2% of world's pharmaceutical market. In the last two years, 3900 new generic products have been launched because of which its market value has been increased to about US $355 million. * Brand Protection* Contamination Control* Drug Verification* Supply Chain Visibility* Recall Management* Shrinkage Reductions * On-the-job training

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Public sector employees more cared than private sector:- A recent survey has shown that, out of the top 10 caring

employers in India, public sector companies are more caring than private sector. The analysis was done by Economic Times.

Not only did these companies continue to invest in employee training and welfare, they also increased funds allocated to such activities.

he analysis was confined to BSE 500 companies, whose data on employee welfare and training is available for FY09 and FY08 on the CMIE Database. Their ranking was done on the basis of annual spend on the welfare and training of employees.

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The analysis revealed that the top three firms in the 'caring employer' league table are public sector companies, with Indian Oil Corp (IOC), Bharat Petroleum Corporation (BPCL), Steel Authority of India (SAIL) occupying the top three slots.

Tata Consultancy Services (TCS), the country's top software exporter and one of four private sector firms to figure in the list, occupied the fourth slot.

The analysis showed that IOC, the largest domestic company by sales, spent around 673 corer on employee welfare and training during FY09, up 45 percent from what it had spent a year ago. Its state-run rival BPCL occupied the number two slot with a spend of 572 corer on welfare and training of employees. But in terms of growth in expenditure, BPCL was miles ahead of the competition as it registered a 181 percent growth in expenditure on employee welfare and training.

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The third and fourth biggest spenders - SAIL and TCS - spent 496 corer and 494 corer respectively, recording a growth of 40 percent and 29 percent respectively.

NTPC, the country's largest power generation firm, and L&T found themselves in the seventh and eighth position spending around 359 corer and 271 corer respectively.

Software firm Wipro and Reliance Industries Ltd (RIL), India's largest firm by market value, occupied the ninth and tenth places respectively

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Reasons for Employee Training and Development:

When a performance appraisal indicates performance improvement is needed

To "benchmark" the status of improvement so far in a performance improvement effort

As part of an overall professional development program As part of succession planning to help an employee be eligible for a

planned change in role in the organization To "pilot", or test, the operation of a new performance

management system

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Identifying Training Needs:

Training needs can be assessed by analyzing three major human resource areas: the organization as a whole, the job characteristics and the needs of the individuals. This analysis will provide answers to the following questions:

Where is training needed? What specifically must an employee learn in order to be

more productive? Who needs to be trained?

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The bigger picture

Organizational performance

Employee performance

Employee Skills, Knowledge and Attitudes

Employee education, experience and training

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Training?

Training helps to bridge the gapExisting

• Skills• Knowledge• Attitudes

Required• Skills• Knowledge• Attitudes

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Training Need Analysis (TNA)

TNA is a tool toidentify the gapExisting

• Skills• Knowledge• Attitudes

Required• Skills• Knowledge• Attitudes

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TNA (Step 1): Future performance

Existing performance

Future performance

What are the goals for the future performance of our organisation?

• profit• growth• customer base• new products• ?• ?

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TNA (Step 2): Challenges

Existing challenges

Future challenges

What are we concerned about? What’re the challenges today?

What challenges we are likely to face in the future?

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TNA (Step 3): Employee performance

Existing performance

Future Performance

In what way our employees should start performing differently to help us meet the challenges and take us to the goals?

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TNA (Step 4): New Skills, knowledge and Attitudes

Existing•Skills•Knowledge•Attitudes

Required• Skills• Knowledge• Attitudes

In order for our employees to perform differently, what kind of new Skills, Knowledge and Attitudes they need to have?

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TNA (Step 5): Training needs

Existing•Skills•Knowledge•Attitudes

Required• Skills• Knowledge• Attitudes

Now that we know what kind of new Skills, knowledge and Attitudes are required for our employees, how can we bridge the gap?

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TNA in essence…

Start with future organizational goals and challenges

Assess required employee performance to meet the goals and challenges

Assess required employee Skills, Knowledge and Attitudes to deliver the performance

Identify employee training needs to bridge the gap

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Training : a panacea of organization survival: Employee Training Leads to Competitive Advantage:-

The quality of employees and their skills acquired through education

and training are key components in determining the long-term

profitability of organizations. Wise organizations invest in the

development and skills of their employees – both new and current –

by delivering high-quality training programs that will increase the

overall efficiency and productivity of the company.

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Employee Training Leads to technological Advantage:-

With technology changing almost as fast as the speed of light, it's

critical to the growth of your business to make sure that your staff is

trained and kept up to date. Since we all are driven to do more with

less, the key to success in today's marketplace is a higher level of

competence that can provide greater productivity and efficiency.

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employee training increasing worker competence:-

training program are designed to make worker better employees by bringing about permanent changing in their knowledge base, attitude and skills. Worker who lack of needed competencies can create problem that undermine efficient operation.

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Reducing the likelihood of unwanted turnover:-

Poor job performances also cause turnovers workers may be discharges

Because they lack requisite job skills. Although in the some instances such individuals should be terminated. Training can

prevent unnecessary termination by: Building employees job skills, improving job performances Improving supervisor’s capabilities for managing “underperforming”

worker. Reeducating people whose skills have become absolute allowing the

organization to assign them to new job responsibilities.

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enhancement of customer satisfaction:-

Organization are compelled to ensure superior quality

lowest cost and better services to their customer to meet

these challenge they must enhances their overall

performances continuously the training of employee help

in improving upon the quality of work and controlling

cost.

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Establishing a positive organization climate:-

training enhances the interaction and understanding between the employer’s and employees. It help to build a good labor management relationship and insure that the individuals goals align well with organization goals. The collective feeing of the employee about their organization is called the organization climate.

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Training & HRD Process Model

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Needs Assessment Phase

Establishing HRD priorities Defining specific training and objectives Establishing evaluation criteria

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Design Phase

Selecting who delivers program Selecting and developing program content Scheduling the training program

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Implementation Phase

Implementing or delivering the program

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Evaluation Phase

Determining program effectiveness – e.g., Keep or change providers? Offer it again? What are the true costs? Can we do it another way?

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Conclusion:- For today's organization training is although not a panacea for

all the ills nor is a remedy which can work miracles but is an approach which reflects an organization commitment towards its employees not only for present but also for future Thus, in such turbulent environment where competition is not only inter product or inter market at national or global level but intra – product or intra – organization competition also exists. Thus to retain its hard fetched Human capital a well planned training policy, department and expectations should be so designed that it could lead way to better organization culture and climate.

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