The case explains the training and developmentinitiatives of the Godrej group since the late 1990s.In the late 1990s, the Godrej group initiated varioustraining and development programs such as theTQM workshops, 'Parivartan', EVA training,GALLOP, Spark, e-Gyan, English languagetraining, and BPa training.

The case explains each of these programs in detailand the benefits that the group reaped from all theseinitiatives. The case ends with the shortcomings inGodrej's training and development initiatives.

Issues:» Understand the training and development initiatives 111 a large organization

» Understand how an organization responds to change and manages change

» Understand the role of the HR department 111 managing change in an organization

» Understand how the top management m an organization facilitates the process of change» Understand what constitutes a learning organization.

» Understand the limitations of training and development initiatives in driving change

Contents:

IntroductionBackQround NoteTotal Qualitv Mana2:ement (TQM) Workshops'Parivartan'Economic Value Added (EVA) Traininl!GALLOPSparkE-GyanCriticisms

Page No.I24445678

Exhibits

"Many Indian companies have increased their emphasis on trauwzg tremendously. I think It IS

absolutely essential to spend a lot of money on training and continuous improvement. In our groupevery employee has to undergo at least five days of training a ye(/J:"

- Adi Godrej, Chairman Godrej Group.!

IntroductionIn January 2002, Godrej Industries Ltd. (GIL)bought a 26% stake in "Personalitree AcademyLtd." Personalitree provided interactive soft skillstraining programmes online to corporates.Personalitree's training modules have since been apart of Godrej's training and developmentinitiatives.

It all started in 1996 with the break-up of the jointventure between Godrej Soaps Ltd (GSL) andProctor and Gamble (P&G). Post break-up, GSLwas bereft of a distribution system and had to startfrom scratch. As part of the rebuilding exercise,GSL recruited about 250 new employees who hadto be aligned with its corporate culture. In 1997,GSL conducted a Total Quality M nagement(TQM) workshop for all its 5000 employees to he pthem connect to their job.

Parivartanl was launched in September 2000 in GSL to train new as well as existing employees onvarious aspects of the business and to motivate them. In 2001, new initiatives like YoungEntrepreneurs Board (YEB), Red and Blue Teams, Mentoring and Reverse Mentoring wereintroduced in the Godrej Group, (Godrej) to e 1courage the involvement of youth in strategicdecision-making.

In early 2002, a need was felt among the top brass of Godrej to instil a performance- driven culturein the company. In addition to upgrading the talents of existing employees, Godrej had to train newrecruits.

Thus, Godrej developed a comprehensive andinnovative training programme for managementtrainees and named it Godrej Accelerated LearningLeadership and Orientation Programme(GALLOP).

The objective of GALLOP was to develop anewcomer into a professional by giving him or herexposure to various departments and inculcate inhim or her, a sense of belonging.

Later, in September 2002, GIL introduced Spark, a

training programme for managers to help thembecome effective coaches. Towards the end of 2002,E-gyan was introduced in GIL to increase thelearning potential of employees.

In January 2003, a special HR programme on honing the interpersonal and negotiation skills ofofficer- level employees was launched in GIL. Further, in October 2003, an English languagetraining programme was held for floor workers of Godrej and Boyce Manufacturing Company Ltd(GBML), so that they could follow all instructions issued in that language independently.

Background NoteThe Godrej story started in 1897, when ArdeslmBurjorji Godrej (Ardeshir) gave up his legalpractice and started manufacturing locks in a smailshed at Lalbaug near Mumbai. Thus was GBMLborn. His brother, Phirozshah Godrej (Phirozshah),carried on the pio eering work and in 1905 GBMLbuilt its first safe, thus entering the securityequipment bu'me s.

GBML expanded its range of products b)manufacturing office equipment, typewriters, too.-room equipment, etc. In the early 1920s, GBMLstarted making soaps from veg table oils andincorporated GSL in 1928.

In 1958, GBML started manufacturing refrigerators, its first home appliance product. GSL venturedinto animal feed in 1971 to help dairy and poultry farmers rear healthier livestock. Godrej Pacificcommenced operations 'n 1982 as the Electronic usiness Equipment (EBE) Division of GBML.

In 1985, GBML ventured into Computl~r Aided Designing services as part of its EBE division. In1990, Godrej Properties & Investments Limited (GPIL) was incorporated to provide meticulouslyplanned townships. In 1991, the Godrej group entered the processed food and edible oil segment byincorporating Godrej Foods Ltd (GFL).

The animal feed division was spun off into adistinctly focused animal- feed and agriculturalinput company in 1991-92 and was named GodrejAgrovet Limited (GAVL). In 1993, GBML enteredinto a joint venture with General Electric (GE), USand Godrej-GE Appliances was formed.

It vent on to manufacture washing machines and airconditioners. GE exited from the joint venture in2001 and the appliances business became a divisionof GBML. In 1993, Godrej entered into amanufacturing and marketing alliance with Proctor& Gamble (P&G). A new company P&G-Godrej

Ltd, with each company holding 50%, wasincorporated.

The entire distribution network of Godrej was transferred to this company and the joint venture wasentrusted with the task of marketing both Godrej and P&G's toilet soap and detergents brands.

The EBE division was spun off into Geometric Software Solutions Ltd in 1994 to offer completesolutions to customers. In 1994, Godrej ventured into the insecticide market through GSL, whichbought 75% stake in Transelektra Domestic Products Pvt Ltd (TDPL), the manufacturer of the"Good Knight" brand.

In 1995, Godrej entered into a joint venture with the US multinational, Sara Lee and the newconcern was called Godrej-Sara Lee. The venture was the world's largest manufacturer of mosquitorepellents. In August 1996, P&G-Godrej Ltd, terminated the arrangement and Godrej re-took chargeof marketing its soap & detergent brands but without a distribution network of its own.

In 1999, GSL sold 22.5 per cent of its shareholding in Godrej-Sara Lee to the group holdingcompany GBML for Rs 994.7 million. Godrej Infotech Ltd was incorporated in 1999 to offersoftware solutions. In March 2001, GSL got de-merged and its consumer products division came tobe known as Godrej Consumer Products Ltd (GCPL) ...

Excerpts

Total Quality ManageInent (TQM) WorkshopsGodrej started total quality management (TQM) workshops in 1995, to inculcate a 'positive workculture' in the company. In 1997, all the 5,000 employe s of GSL were put through a three-dayworkshop as part of the "visioning" session of TQ 1...

'Parivartan'In 2000, 'Parivartan' was launched in GSL with the objective of motivating employees as well asimparting knowledge about the sales functions of GSL. A team of 18 senior executives from alldivisions spanning sales, logistics and HR were called on to provide necessary inputs ...

Economic Value Added (EVA)Training

In 2001, Godrej introduced Economic Value Added(EVA) in all its group companies. An extensivetraining program was undertaken for variousmanagerial and officer levels. Over 500 employeeswere trained to man<tge EVA by making app 'opriatedecisio s involving investments and/or trade-offsbetween the income statement and the balancesheet. This training programme was conducted byStern Stewart, New York based managementconsultancy who had pioneered the c ncept ofEVA ...

GALLOPGALLOP was instituted in early 2002 as a <;tructured and organised induction-training programmeat Godrej. GALLOP aimed at nurturing the new recruits into leaders and dynamic performersthrough this one-year programme. The programme started with an induction speech by thechairman, followed by t e speeches y the CEOs of all the group companies.

The trai e ~s 'ere rotated in four departments other than their primary department including acompulsory sales stint. This mandatory rotation in sales enabled the trainees to get a hands-onexperience in understanding the market...

SparkThe objective of the Spark programme, initiated by GIL in September 2002, was to "train thetrainers". The training programme was aimed at equipping the managers to become successfulcoaches. GIL, in association with a Delhi-based H consultant, conducted a host of workshops toenable the managers assume the role of a coach ...

E-GyanE-Gyan was the e-Iearning initiative of GILlaunched in the second half of 2002. It was anattempt to move away from traditional trainingmethods of workshops and help sharpen theintellect of the employees by self- learninginiti lti 'es. Initially, Sat yam Education Services Ltdwas the content provider and rendered the entiregamut of learning resources through its e-Iearningportal -kamat atyam.com. Internal communicationmeasures like 'enrolment on a first-come-first-servebasis' and 'be the first e-gyanee' were circulated ...

CriticismsOne criticism against the training and development programs at Godrej was that there were nomeasurement techniques to judge the effectiveness of the programs. For example. no specificmeasures were developed to determine the extent to which the interpersonal and negotiation skillstraining aided the employees to develop a more robust business concept...