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INTRODUCTION OF TRAINING & DEVELOPMENT
TRAINI TRAINING NG AND DEVELO DEVELOPME PMENT NT is a subsys subsystem tem of an organi organizat zation ion.. It ensure ensuress that that randomness is reduced and learning or behavioral change takes place in structured format.
TRAINING AND DEVELOPMENT DEFINED
It is concerned with the structure and delivery of acquisition of knowledge to improve the efficiency and effectiveness of organization. It is concerned with improving the existing skills and exploring the potential skills of the individual i.e. upgrading the employees’ skills and extend extending ing their their knowled knowledge. ge. Theref Therefore ore,, traini training ng is a key to optimi optimizin zing g utili utilizat zation ion human human intellectual technological and entrepreneurial skills Training and Development referred to as:
• Acquisition and sharpening of employees capabilities that is required to perform various obligations, tasks and functions. • Developing the employee’s capabilities so that they may be able to discover their potential and and
expl exploi oitt
them hem
to
full ull
their heir
own
and and
orga organi niza zattiona ionall
deve devellopme opment nt
pur purpose pose..
• Developing an organizational culture where superior-subordinate relationship, team work, and collab collabora oratio tion n among among differ different ent sub units units are strong strong and contri contribut butee to organi organizat zation ional al wealth, dynamism and pride to the employees.
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Development defined
It helps the individual handle future responsibilities, with less emphasis on present job duties.
Introduction of training
It is a learning process that involves the acquisition of knowledge, sharpening of skills, concept concepts, s, rules, rules, or changin changing g of attitu attitudes des and behavio behaviors rs to enhance enhance the perfor performan mance ce of employees.
INPUTS IN TRAINING AND DEVELOPMENT
Any training and development programme must contain inputs which enable the participants to gain skills, learn theoretical concepts and help acquire vision to look into the distant future.
Skills: Training is imparting skills to employees. A worker needs skills to operate machines, and use other equipments with least damage and scrap. This is a basic skill without which the operator will not be able to function. Employees, particularly supervisors and executives, need interpersonal skills.
Education: The purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgment.
Development: It is less skill-oriented but stresses on knowledge. Knowledge about business enviro environme nment, nt, manage managemen mentt princi principle pless and techni techniques ques,, human human relati relations ons,, specif specific ic indust industry ry analysis is useful for better management of a company.
Ethics: There is need for imparting greater ethical orientation to a training and development progr programm amme. e. Ethical Ethical attitu attitude de help help managem management entss make make better better decisi decisions ons which which are in the interests of the public, the employees and in the long term-the company itself.
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Attitudinal Changes: Attitude represents feelings and beliefs of individuals towards o thers. Attitude affects motivation, satisfaction and job commitment. Negative attitude need to be converting into positive attitude. Attitude must be changed so that employees feel committed to the organization, are motivated for better performance, and derive satisfaction from their jobs and the work environment.
Decision making and problem solving skills: It focus on methods and techniques for making organization decision-making and solving work related problems.
TRAINING AND DEVELOPMENT OBJECTIVES
The principal objective objective of training training and development development division division is to make sure the availabili availability ty of a skilled and willing workforce to an organization. In addition to that, there are four other objectives:
Individual,
Organizational,
Functional,
and
Societal.
Individual objectives – help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization.
Organizational Objectives – assist the organization with its primary objective by bringing individual effectiveness.
Functional Objectives – maintain the department’s contribution at a level suitable to the organization’s needs.
Societal Objectives – ensure that an organization is ethically and socially responsible to the needs and challenges of the society.
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IMPORTANCE OF TRAINING AND DEVELOPMENT
It helps helps to deve develo lop p huma human n inte intell llect ect and and an overa overall ll pers person onal alit ity y of the the empl employ oyee ees. s.
• Productivity – Training and Development helps in increasing the productivity of the
empl employ oyee eess
that hat
hel helps
the the
orga organi niza zattion ion
furt urther her
to
achi achiev evee
its its
long long-t -ter erm m
goal goal..
• Team spirit – Training and Development helps in inculcating the sense of team work, team spirit, spirit, and inter-team inter-team collaborations. collaborations. It helps in inculcating inculcating the zeal to learn within within the employees.
• Organization Culture – Training and Development helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization. • Organizati Training ng and Develop Developmen mentt helps helps buildi building ng the posit positive ive Organization on Climate Climate – Traini
perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers. • Quality – Training and Development helps in improving upon the quality of work and
work-life.
• Healthy work-environment – Training Training and Development Development helps in creating creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.
• Health and Safety – Training and Development helps in improving the health and safety of the organization thus preventing obsolescence.
• Morale – Training and Development helps in improving the morale of the work force.
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Page |5 Traini ning ng and and Devel Developm opmen entt help helpss in creat creatin ing g a bett better er corpo corpora rate te imag image. e. • Image – Trai
Training ng and Develo Developme pment nt leads leads to improv improved ed profi profitab tabili ility ty and more more • Profitability – Traini positive attitudes towards profit orientation. Training and Development Development aids in organization organizational al development development i.e. Organizati Organization on gets more • Training effective decision making and problem solving. It helps in understanding and carrying out organizational policies • Training and Development helps in developing leadership skills, motivation, loyalty, better
attitudes, and other aspects that successful workers and managers usually display.
• 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.
• Development of Human Resources – Training and Development helps to provide an opportu opportunit nity y and broad broad struct structure ure for the develo developme pment nt of human human resour resources ces’’ techni technical cal and behavioral skills in an organization. It also helps the employees in attaining personal growth.
•
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 of human intellect and an overall personality of the employee
MODELS OF TRAINING
Training is a sub-system of the organization because the departments such as, marketing & sale sales, s, HR, HR, produ product ctio ion, n, fina financ nce, e, etc etc depen depends ds on trai traini ning ng for for its its surv surviv ival al.. Trai Traini ning ng is a transforming process that requires some input and in turn it produces output in the form of knowledge, skills, and attitudes.
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THE TRAINING SYSTEM The three model of training are: 1. System Model 2. Instructional System Development Model 3. Transitional model
SYSTEM MODEL TRAINING
The system model consists of five phases and should be repeated on a regular basis to make furthe furtherr improv improveme ements nts.. The traini training ng should should achiev achievee the purpos purposee of helpin helping g employ employee ee to perform their work to required standards. The steps involved in System Model of training are as follows: 1. ANALYZE and identify the training needs i.e. to analyze the department, job, employees
requirement, who needs training, what do they need to learn, estimating training cost, etc The next step is to develop a performance measure on the basis of which actual performance would be evaluated. 2. DESIGN and provide training to meet identified needs. This step requires developing
objectives of training, identifying the learning steps, sequencing and structuring the contents
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3. DEVELOP- This phase requires listing the activities in the training program that will
assist the participants to learn, selecting delivery method, examining the training material, valida validatin ting g inform informati ation on to be impart imparted ed to make make sure sure it accomp accomplis lishes hes all the goals & objectives. 4. IMPLEMENTING is the hardest part of the system because one wrong step can lead
to the failure of whole training program. 5. EVALUATING each phase so as to make sure it has achieved its aim in terms of
subsequent work performance. Making necessary amendments to any of the previous stage in order to remedy or improve failure practices
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TRANSITIONAL MODEL Transitional model focuses on the organization as a whole. The outer loop describes the vision, mission and values of the organization on the basis of which training model i.e. inner loop is executed. VISION – focuses on the milestones that the organization would like to achieve after the
defined point of time. A vision statement tells that where the organization sees itself few years down the line. A vision may include setting a role mode, or bringing some internal transformation,
or
may
be
promising
to
meet
some
other
deadlines.
MISSION – explain the reason of organizational existence. It identifies the position in the
community. The reason of developing a mission statement is to motivate, inspire, and inform the employees regarding the organization.The mission statement tells about the identity that how the organization would like to be viewed by the customers, employees, and all other stakeholders. VALUES – is the translation of vision and mission into communicable ideals. It reflects
the the deepl deeply y held held valu values es of the the orga organi niza zati tion on and and is inde indepen pende dent nt of curr curren entt indu indust stry ry environment. For example, values may include social responsibility, excellent customer service, etc
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The mission, vision, and values precede the objective in the inner loop. This model considers the organization as a whole. The objective is formulated keeping these three things in mind and then the training model is further implemented
INSTRUCTIONAL SYSTEM DEVELOPMENT (ISD) MODEL Instructional System Development model was made to answer the training problems. This model is widely used now-a-days in the organization because it is concerned with the training training need on the job performance. performance. Training Training objectives objectives are defined on the basis of job responsibilities and job description and on the basis of the defined objectives individual progress is measured. This model also helps in determining and developing the favorable stra strate tegi gies es,, seque sequenc ncin ing g the the cont conten ent, t, and and deli delive veri ring ng medi mediaa for for the the types types of trai traini ning ng objectives to be achieved. The Instructional System Development model comprises of five stages:
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P a g e | 10 1. ANALYSIS – This phase consist of training need assessment, job analysis, and target
audience analysis. 2. PLANNING – This phase consist of setting goal of the learning outcome, instructional
objectives that measures behavior of a participant after the training, types of training materi material, al, media media select selection ion,, methods methods of evaluat evaluating ing the train trainee, ee, traine trainerr and the train training ing program, strategies to impart knowledge i.e. selection of content, sequencing of content, etc
3. DEVELOPMENT – This phase translates design decisions into training material. It
consists of developing course material for the trainer including handouts, workbooks, visual aids, demonstration props, etc, course material for the trainee including handouts of summary. 4. EXECUTION – This phase focuses on logistical arrangements, such as arranging
speakers, equipments, benches, podium, food facilities, cooling, lighting, parking, and other training accessories.
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P a g e | 11 5. EVALUATION – The purpose of this phase is to make sure that the training program
has achieved its aim in terms of subsequent work performance. This phase consists of identifying strengths and weaknesses and making necessary amendments to any of the previous stage in order to remedy or improve failure practices. The ISD model is a continuous process that lasts throughout the training program. It also highlights that feedback is an important phase throughout the entire training program. In this model, the output of one phase is an input to the next phase.
PROCESS OF TRAINING
TRAINING
TRAINING NEED ANALYSIS
DESIGN
TRAINING PROCESS
TRAINING
TRAINING
EVALUATION
IMPLEMENTAT ION
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TRAINING NEED ANALYSIS (TNA)/TRAINING NEED IDENTIFICATION (TNI)
An analysis of training need is an essential requirement to the design of effective training. The purpose of training need analysis is to determine whether there is a gap between what is required for effective performance and present level of performance.
Training Need arises at three levels: •
Organizational level
•
Individual level
•
Operational level
Corporate need and training need are interdependent because the organization performance ultimately depends on the performance of its individual employee and its subgroup.
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Organizational level – Training need analysis at organizational level focuses on strategic planning, business need, and goals. It starts with the assessment of internal environment of the organization such as, procedures, structures, policies, strengths, and weaknesses and external environment environment such as opportuniti opportunities es and threats. threats. After doing the SWOT analysis, analysis, weaknesses weaknesses can be dealt with the training interventions, while strengths can further be strengthened with continued training. Threats can be reduced by identifying the areas where training is required. And, opportunities can be exploited by balancing it against costs. For this approach to be successful, the HR department of the company requires to be involved in strategic planning. In this planning, HR develops strategies to be sure that the employees in the organization have the the requ requir ired ed Knowl Knowled edge, ge, Skil Skills ls,, and and Attr Attrib ibut utes es (KSA (KSAs) s) base based d on the the futu future re KSAs KSAs requirements at each level.
Individual level – Training need analysis at individual level focuses on each and every individual in the organization. At this level, the organization checks whether an employee is performing at desired level or the performance is below expectation. If the difference between the expected performance and actual performance comes out to be positive, then certainly there is a need of training. However, individual competence can also be linked to individual need.
The
methods
that
are
used
to
• Appraisal and performance review • Peer appraisal • Competency assessments • Subordinate appraisal • Client feedback • Customer feedback • Self-assessment or self-appraisal
13
analyze
the
individual
need
are:
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Operational level – Training Need analysis at operational level focuses on the work that is being assigned to the employees. The job analyst gathers the information on whether the job is clearly understood by an employee or not. He gathers this information through technical interview, observation, psychological test; questionnaires asking the closed ended as well as open open ended ended questio questions, ns, etc. Today, Today, jobs jobs are dynamic dynamic and keep keep changi changing ng over the time. time. Employees need to prepare for these changes. The job analyst also gathers information on the tasks needs to be done plus the tasks that will be required in the future. Based on the information collected, training Need analysis (TNA) is done.
Benefits of need assessment
Training programs are designed to achieve specific goals that meet felt needs. There are many benefits of need assessment: 1. Trainers Trainers may may be inform informed ed about the broader broader need need of the trainee trainees. s. 2. Trainers Trainers are able able to pitch their their course inputs inputs closer closer to the specific specific needs of the the trainees. trainees. 3. Assessmen Assessmentt makes traini training ng department department more more accountable accountable and more more clearly clearly linked linked to other human human resour resource ce activi activitie ties, s, which which make make the train training ing progra programs ms easier easier to sell sell to line line managers.
TRAINING-DESIGN
The design of the training program can be undertaken only when a clear training objective has been produced. The training objective clears what goal has to be achieved by the end of training program i.e. what the trainees are expected to be able to do at the end of their trai raining ning..
Trai Traini ning ng
obje object ctiives ves
assi assist st
trai traine nerrs
to
desi design gn
the
trai raining ning
prog progra ram m.
The traine trainerr – Befo Before re star starti ting ng a trai traini ning ng prog progra ram, m, a trai traine nerr anal analyz yzes es his his techn technic ical al,, interpersonal, judgmental skills in order to deliver quality content to trainers.
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The trainees – A good training design requires close scrutiny of the trainees and their profiles. Age, experience, needs and expectations of the trainees are some of the important factors that affect training design.
Cost of training – It is one of the most important considerations in designing a training programme. A training programme involves cost of different types. These may be in the form of direct expenses incurred in training, cost of training material to be provided, arrangement of physical facilities and refreshment, etc. Besides these expenses the organization has to bear indirect cost in the form of loss of production during training period. Ideally, a training programme must be able to generate more revenues than the cost involved.
Training climate – A good training climate comprises of ambience, tone, feelings, positive perception for training program, etc. Therefore, when the climate is favorable nothing goes wrong but when the climate is unfavorable, almost everything goes wrong.
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TRAINING-DESIGN
Trainees’ learning style – the learning style, age, experience, educational background of trainees must be kept in mind in order to get the right pitch to the design of the program.
Training strategies – Once the training objective has been identified, the trainer translates it into specific training areas and modules. The trainer prepares the priority list of about what must be included, what could be included.
Training topics – After formulating a strategy, trainer decides upon the content to be delivered. Trainers break the content into headings, topics, ad modules. These topics and modu module less are are then then clas classi sifi fied ed into into info inform rmat atio ion, n, know knowle ledg dge, e, skill kills, s, and and atti attitu tude des. s.
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Sequence the contents – Contents are then sequenced in a following manner:
• From simple to complex • Topics are arranged in terms of their relative importance • From known to unknown • From specific to general • Dependent relationship
Training tactics – Once the objectives and the strategy of the training program becomes clear, trainer comes in the position to select most appropriate tactics or methods or techniques. The
method
selection
depends
on
the
following
factors:
• Trainees’ background • Time allocated • Style preference of trainer • Level of competence of trainer • Availability of facilities and resources, etc
Support Support facilitie facilitiess – IT can be segreg segregate ated d into into printe printed d and audio visual visual.. The variou variouss requirements in a training program are white boards, flip charts, markers, etc.
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Constraints – The various constraints that lay in the trainers mind are: • Time • Accommodation, facilities and their availability • Furnishings and equipments • Budget • Design of the training, etc
TRAINING IMPLEMENTATION
To put training training program into effect according according to definite definite plan or procedure is called called training training implementation. Training implementation is the hardest part of the system because one wrong step can lead to the failure of whole training program. Even the best training program will fail due to one wrong action. Training implementation can be segregated into: • Practical administrative arrangements • Carrying out of the training Once the staff, course, content, equipments, topics are ready, the training is implemented. Completing training design does not mean that the work is done because implementation phase phase requir requires es contin continual ual adjust adjusting ing,, redesi redesigni gning, ng, and refini refining. ng. Prepar Preparati ation on is the most most important factor to taste the success. Therefore, following are the factors that are kept in mind while implementing training program:
The trainer – The trainer need to be prepared mentally before the delivery of content. Trainer prepares materials and activities well in advance. The trainer also set grounds before meeting with participants by making sure that he is comfortable with course content and is flexible in his approach.
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Physical set-up – Good physical set up is pre-requisite for effective and successful training program because it makes the first impression on participants. Classrooms should not be very small or big but as nearly square as possible. This will bring people together both physically and psychologically. Also, right amount of space should be allocated to every participant.
Establishing rapport with participants – There are various ways by which a trainer can establish good rapport with trainees by: •
Greeting
participants
–
simple
way
to
ease
those
initial
tense
moments
• Encouraging informal conversation • Remembering their first name • Pairing up the learners and have them familiarized with one another • Listening carefully to trainees’ comments and opinions • Telling the learners by what name the trainer wants to be addressed • Getting to class before the arrival of learners • Starting the class promptly at the scheduled time • Using familiar examples • Varying his instructional techniques • Using the alternate approach if one seems to bog down
Reviewing the agenda – At the beginning of the training program it is very important to review the program objective. The trainer must tell the participants the goal of the program, what is expected out of trainers to do at the end of the program, and how the program will run. The
following
information
needs
19
to
be
included:
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• Kinds of training activities • Schedule • Setting group norms • Housekeeping arrangements • Flow of the program • Handling problematic situations
In general programme implementation involves action on the following lines: •
Deciding the location and organizing training and other facilities.
•
Scheduling the training programme.
•
Conducting the programme.
•
Monitoring the progress of the trainees .
TRAINING EVALUATION
The process of examining a training program is called training evaluation. Training evaluation checks whether training training has had the desired effect. Training evaluation evaluation ensures ensures that whether candidates are able to implement their learning in their respective workplaces, or to the regular work routines.
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Purposes of Training Evaluation
The five main purposes of training evaluation are: Feedback: It helps in giving feedback to the candidates by defining the objectives and linking
it to learning outcomes. Research: It helps in ascertaining the relationship between acquired knowledge, transfer of
knowledge at the work place, and training
Control: It helps in controlling the training program because if the training is not effective,
then it can be dealt with accordingly. Power games: At times, times, the top manage managemen mentt (highe (higherr author authorita itati tive ve employ employee) ee) uses uses the
evaluative data to manipulate it for their own o wn benefits.
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P a g e | 22 Intervention: It helps in determining that whether the actual outcomes are aligned with the
expected outcomes.
Functions of evaluation:
There are basically two functions of evaluation: 1. Qualitati Qualitative ve evaluations evaluations is is an assessm assessment ent process process how how well did we do? do? 2. Quantitativ Quantitativee evaluation evaluation is an assessmen assessmentt process process that answers answers the questio question n How much did we do?
Principles of Training Evaluation:
Trai Traini ning ng need need shoul should d be iden identi tifi fied ed and and revi review ewed ed conc concur urre rent ntly ly with with the the busin busines esss and and personal development plan process. a) Evalua Evaluatio tion n must must be cont continu inuous. ous. b) Evalua Evaluatio tion n must must be spec specifi ific. c. c) Evaluation Evaluation must must be based on objective objective methods methods and standards. standards. d) There should should be correlat correlation ion to the needs needs of the the business business and the indivi individual. dual. e) Orga Organi niza zati tion onal al,, grou group p and and indi indivi vidu dual al level level trai traini ning ng need need shou should ld be ident identif ifie ied d and and evaluated. f) Techni Techniques ques of of evaluat evaluation ion shoul should d be appropr appropriat iate. e. g) The evaluatio evaluation n function function should be in in place before before the training training takes takes place. place. h) The outcome outcome of evaluation evaluation should should be used to inform inform the business business and training training process. process.
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Need of evaluation of Training: Training cost can be significant in any business. Most organizations are prepared to incur these cost because they expect that their business to benefit from employees development and progress. Whether business has benefited can be assessed by evaluation training. There are basically four parties involved in evaluating the result of any training. Trainer, Trainee, Training and Development department and Line Manager. •
The Trainee wants to confirm that the course has met personal expectations and satisfied any
learning objectives set by the T & D department at the beginning of the programme. •
The Trainer concern is to ensure that the training that has been provided is effective or not.
•
Training and Development Development want to know whether the course has made the best use of the
resources available. •
The Line manager will be seeking reassurance that the time hat trainee has spent in attending
training results in to value and how deficiency in knowledge and skill redressed. The problem for many organizations is not so much why training should be evaluated but how. Most of the organizations overlook evaluation because financial benefits are difficult to describe in concrete terms. The process of evaluation is central to its effectiveness and helps to ensure that: •
Whether training budget is well spent
•
To judge the performance of employee as individual and team.
•
To establish culture of continuous learning and improvement.
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PROCESS OF TRAINING EVALUATION
Before Before Training Training: The learne learner’s r’s skill skillss and knowle knowledge dge are assess assessed ed before before the traini training ng program. During the start of training, candidates generally perceive it as a waste of resources because at most of the times candidates are unaware of the objectives and learning outcomes of the program. Once aware, they are asked to give their opinions on the methods used and whether those methods confirm to the candidates preferences and learning style
During Training: It is the phase at which instruction is started. This phase usually consist of short tests at regular intervals.
After Training: It is the phase when learner’s skills and knowledge are assessed again to measur measuree the effect effective ivenes nesss of the traini training. ng. This This phase phase is design designed ed to determ determine ine whethe whether r training training has had the desired desired effect effect at individual department department and organizational organizational levels. levels. There are various evaluation techniques for this phase.
Techniques of evaluation
The various methods of training evaluation are: • Observation • Questionnaire • Interview • Self diaries • Self recording of specific incidents
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WHAT TO EVALUATE/LEVEL OF EVALUATION
Donald Kirkpatrick developed four level models to assess training effectiveness. According to him evaluatio evaluation n always always begins with level level first first and should should move throug through h other other levels levels in sequence.
•
Reaction Level: The purpose is to measure the individual reaction to the training activity.
The benefit of Reaction level evaluation is to improve Training and Development activity efficiency and effectiveness. •
Learning Learning Level: The basic purpose is to measure the learning transfer achieved by the
training and development activity. Another purpose is to determine to what extent the indivi individual dual increa increased sed their their knowle knowledge, dge, skill skillss and changed changed their their attitu attitudes des by applyin applying g quantitative or qualitative assessment methods •
Behavior Level: The basic purpose is to measure changes in behavior of the individual as
a result of the training and development activity and how well the enhancement of knowledge, skill, attitudes has prepared than for their role. •
Result Level: The purpose is to measure the contribution of training and development to
the achievement of the business/operational goals.
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INDUSTRY PROFILE TOBACCO IN INDIA : India is the third largest tobacco producer in the world in the world and a significant player in the global market ranking and occupying position ninth in the export. Tobacco is grown in India for every 400 Hectors. Cigarette tobacco has been cultivated for nearly 90 years.
TYPES OF TOBACCO: 1. Flue Flue Cur Curve ved d Toba Tobacc cco o 2. Sun Sun Cur Curve ved d Tob Tobac acco co 3. Bidi Bidi Tob Tobac acco co 4. Ciga Cigare rett ttee Toba Tobacc cco o 5. Burl Burley ey Toba Tobacc cco o 6. Cher Cheroo oott Toba Tobacc cco o 7. Hooka Hookah h 4 chewin chewing g Toba Tobacc cco o 8. Air Air cur curve ved d Toba Tobacc cco o 9. Fire Fire Cur Curve ved d Toba Tobacc cco o 10. Oriented Tobacco
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Over 550 million Kg of tobacco is grown annually, with flue curved Virginia (FCV)
and Burley tobaccos accounting for approximi9alately 200 million Kg s. Nearly 50 % of FCV crop is exported, making India . The fourth largest grower and exported of FCV tobacco tobacco in the world. world. Light Light soil soil burle burley y and airair- curve curved d tobacc tobaccos os are are also also exported.
4, 00,000 hectors of land is under tobacco cultivation. Nearly 6 million people are involved in the process. It is generating employment for every 30 million people with collective wages amounting to $520 million annually.
Excise collections from the tobacco industry are about $1.2 billion annually with cigarette tobacco’s accounting for nearly 90%of the revenge generated. Andhra Pradesh and Karnataka in the southern part of India are main cigarette tobacco growers.
India has the climate, soil and skills to produce a quality tobacco that is preferred internationally. internationally. Guntur in A.P is the tobacco of the country there cigarette tobacco growing, auctioning and trading began. The near by port of CHENNAU handles the bulk of tobacco export consignments. consignments.
Strong entry barriers of brand equity and distribution network characterize the cigarette business. Buildings up brand are particularly difficult in this business as TV and video video advers adverstim timent ent are are restr restrict icted ed in India. India. Some Some stats stats have have banned banned smoking smoking in public public places. places. Brand loyaltie loyaltiess neverthe nevertheless less are strong strong as product product
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consumed as addition cannot be differentiated much on performance. performance. Building up a distribution network is an equally drawing task as the product is distributed network is an equally drawings task as the product is distributed through sources of small roadside pan and bidi shops all over country.
Worl World d over over the cigar cigarett ettee indust industry ry is facin facing g seriou seriouss probl problems ems in develo developed ped countries, it has more or less reached a level of stagnation and even experience negative growth. This is mainly because of growing health consciousness, steep duty duty like likess and and subs subseq eque uent nt pric pricee incr increa ease se had had led led to a slow slowdo down wn.. Besi Beside dess restrictions on smoking are public places ban on sales in railway stations has an advers adversee impac impactt on retail retail cigar cigarett ettee off take. take. Anoth Another er area area of concer concern n for the cigarette cigarette industry has been the free availability of smuggled smuggled brands in the country.
Cigarettes come under the category of fast moving consumer goods. As such strong brand names and aggressive marketing assume importance. The industry therefore undertakes massive investment in brand promotion and setting up of a marketing infrastructure. The people directly employed in the cigarette industry are around 4.5 million.
In India tobacco crop is grown over an area of 4,00,000 hectors, which is hardly 0.3% of the total cropped are India is the third largest producer with production of 590 million Kg after China and the U.S.
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2/3rd of Indian tobacco is used in non-cigarette a product of the left over 1/3, half is exported. Tobacco contributes over Rs.25, 000 million by way of excise revenue and earns over Rs. 5,000 million by way of foreign exchange.
Among various types Virginia Flue curved is the most important. Tobacco yield in India at around 1,486 Kg per hectares. Cigarette industry is broadly classified into filter and non-filter and further sub classified based on the length.
The campaign against smoking is mainly directed against cigarettes. The bidi and chewing product manufactures manufactures who primarily fall into the unorganized and smallscale sectors have more or less escaped the problem.
Bidi account for about 53%(by weight), chewing of non-smoking products account for for 27% 27% ciga cigare rett ttes es as an indu indust stry ry acco accoun untt for for arou around nd 20% 20% of the the toba tobacc cco o consumption in the country.
India’s cigarette industry experienced a growth rate of 10% during 1994-1995 to 1997-1998 mainly because of incentive in the form of lower excise duty but a present cigarette companies are forced to operate under adverse factors both internal and external.
For the Govt. the cigarette segment accounts for nearly 90% of the total excise collections from the tobacco segment.
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The growth of the industry largely depends on the excise policies of the govt. price sensitivity can be seen particularly at the lower end of the market.
About 1/3 of the world cigarettes amounting to Rs.1,80,000 million are currently being being smug smuggl gled ed India, India, like like many many other other develo developin ping g count countrie ries, s, has become become a cigarette smuggler’s paradise out of 97 billion cigarette sticks sold in India. Each year about 5 billion are smuggled in leading to a loss of about Rs.20, 000 million in revenue. Out of every 100 packages of smuggled cigarettes sold in the country, 70 to 80 packages are Marlboro lights produced by US based Philip Morris the top cigarette cigarette producer in the world.
The tobacco companies will be required to indicate nicotine and tar content in each cigarette in cigar. This information will need to be published on each packet in the English & Indian languages. All violations will lead to confiscation of goods.
Accordi According ng to Premed Premed Maharaja Maharaja Parliam Parliamenta entary ry affairs affairs mini8ste mini8ster, r, the followin following g produc products ts will will be covere covered d in the new legisl legislati ation. on. Cigare Cigarette ttes, s, cigar cigars, s, cigar cigarett ette, e, tobacco pipe tobacco, hukka tobacco, chewing tobacco, panmasala, gutka, or any nother chewing masala.
India India has has one one of the highes highestt rates rates of taxat taxation ion among among count countrie riess impro improvin ving g a specific tax on cigarettes. Infect, about 605 of the price of cigarette in India repre represen sents ts excise excise cigar cigarett ettee contr contribu ibute te nearl nearly y 10% of the the total total excise excise to the exchequer. The industry contribution over Rs. 60 billion a years as excise duty.
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Raising taxes on cigarettes, exports say, will drive people into other form of tobacc tobacco o use, use, partic particula ularl rly y bidis, bidis, which which are are even even more more of a health health hazar hazard d than than cigarettes and practically pay no taxes.
The advertising standards council of India (ASCI) has adopted a code, which requires that the advertisements advertisements of tobacco-based tobacco-based products should not:
1. Encourag Encouragee minors minors or induce induce non-smok non-smokers ers to use use tobacco tobacco product products. s.
2. Sugg Sugges estt that that the the use use of toba tobacc cco o prod produc ucts ts would would lead lead to extr extra a ordi ordina nary ry successive various areas.
3. Successi Successive ve various various areas areas of human human Endeavour Endeavour..
4. Imply any link link between between tobacco tobacco use and manliness manliness female emancipation. emancipation.
5. Contain Contain any any endorsem endorsement ent of tobac tobacco co use by by celebrit celebrities. ies.
6. Depict Depict any any model model below below the the age age of 25.
7. Show any model model smokin smoking g or chewing chewing tobac tobacco. co.
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MAJOR PLAYERS: INDIAN TOBACCO COMPANY LTD: ITC is the market leader in the country. It has a market share of 67% in volume terms and the largest distribution networks in the country sale of cigarettes by ITC feel by 2.37% during 1999-2000 to 77.15 billion sticks from 67.5 billion sticks in 1998-1999 total revenue increased by 6.18% to Rs.69, 400 from Rest. 65,360 million in the pervious year.
GODFREY PHILIPS INDIA LTD: GPI is the second largest player in the Indian cigarette industry is a joint venture with global cigarette major Phillip marries. Gpi’s leading brands include jaisalmer, jaisalmer, four square, red & white and originals.
VAZR SULTAN TOBACCO (VST)
It is prim primar ary y in the the busi busine ness ss of manu manufa fact ctur urin ing g and and mark market etin ing g of
cigarettes. The companies major brands are Chaminar, Charms and Gold premium these have several brand extensions.
Expert Expertss say that the tax on cigar cigarett ettes es shoul should d be linked linked to tar and
nicoti8ne content. In many countries, there is a tendency to use taxes to either encourage smokers to mover to filter cigarettes or to tie the tax rate to tar and nicotine context. Tax rate to tar and nicotine content.
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RESEARCH DESIGN This study is mostly exploratory in nature and it aims at discovering general problems in functions of management and variables released with it.In this part, an attempt has been made to explain the research design, the procedure of sample selection,methodology used in data collection,analysis,presentation.
OBJECTIVES OF THE STUDY
Increase India’s market share in the international tobacco market and project ILTD/India as a reliable competitive quality supplier
Ensure Ensure a crop crop size size of requir required ed variet varieties ies and and qualit qualities ies,, which which would would mee meett domestic and export requirement.
To play a proactive role in balancing the crop size in relation to supply and demand situation.
Enha Enhanc ncee our our comp compet etit itiv ivee edge edge in all all sphe sphere ress to matc match h inte intern rnat atio iona nall competition/standards competition/standards help seize international opportunities. opportunities.
Explore cheaper and effective financing options and strengths cost control measures.
To stren strengt gthen hen Human Human Resour Resource ce Me Mecha chanis nisms ms in order order to mobil mobiles es Human Human Resource at all levels to ensure competitiveness and contemporariness of the division.
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SCOPE OF THE STUDY
To develop a work culture conductive to learning to learning and make continuous and appropriate investments (time, effort & money) in human resource for competence enhancement with a view to making them effective and comtempary and thus help achieve the division’s objective in an increasingly competitive cigarette tobacco market.
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LIMITATIONS OF THE STUDY
Due to lack of time the study could not cover the entire employees.
Sampling size is restricted to only certain limited employees.
The study is related only to ITC Guntur.
Some people were reluctant to answer the questionnaire. questionnaire.
The survey may not reflect the opinion of the entire employees.
There may be a change of personal bias.
Data analysis done is totally based on the information that it is collected
from the questionnaire.
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METHODOLOGY OF THE STUDY : The data pertaining to the opinions and feedback of the employees has been obtained from the primary source. The information about profile-integrated plan etc, have been obtained from secondary sources. An exhaustive study has been made to meet the above-mentioned objectives. objectives. SOURCES: Mainly primary source and then secondary source. Primary Data: The The prim primar ary y data data is coll collec ecte ted d thro throug ugh h pers person onal al inte interv rvie iew w with with employees, by questionnaires. questionnaires. Secondary data: The sources of secondary data are,
Internet Brochures, Magazines, Magazines, Annual reports of the organization. organization.
Sample size: The total population of 20 constituted constituted the study. Statistical tools used:
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1. Perc ercenta entag ges 2. Pie charts
COMPANY PROFILE British American Tobacco started its tobacco trading in India on 24 th August 1910 by name “Imperial Tobacco Company of India Ltd.”. Later the company amalgamated with peninsular tobacco company and Indian Tobacco Development Company. In the year 1970 it changed its name to “India Tobacco Company (ITC)” and registered in 1974 as ITC Ltd.
ITC Limited headed by Chairman Y.C. Deveshwar is one of the India’s
largest private sector companies with an annual turnover of over $ 1.7 billion.
ITC’S PRPTOFOLIO OF BUSINESS:
ITC ITC is one one of Indi India’ a’ss fore foremo most st priv privat atee sect sector or comp compan anie iess with with a mark market et
capitalization of over US $ 16 billion and a turnover of US $ 3 billion. Rated among the world’s best big companies by Forbes Magazine, Itc ranks 3 rd on all major profit parameters among India’s private sector corporations. Itc has a diversified presence and specialty papers, packaging, agri businesses, packaged foods and confectionery, bra brand nded ed appa appare rel, l, gree greeti ting ng card cardss and and othe otherr FM FMCG CG prod produc ucts ts.. Whil Whilee ITC ITC is an outstanding market leader in its traditional business of in cigarettes, hotels, paper boards boards packagin packaging, g, agri-bus agri-busines inesses, ses, it is rapidly rapidly gaining gaining market share share even in its 37
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nascent businesses of packaged foods and confectionery, branded apparel, greeting cards.
As one of India’s most valuable and respected cooperation’s, ITC is widely
perceived perceived to be dedicate dedicatedly dly nation nation oriented. oriented. Chairmen Chairmen Y.C Deveshwar Deveshwar calls this source of this inspiration “a commitment beyond the market”. In his own words: “ITC belives that its aspiration to create enduring value for the nation provides the motive force to sustain growing share holder value. Itc practices this philosophy by not only drivin driving g each each of its busine business ss towar towards ds intern internati ationa onall compet competiti itiven veness ess but by also also consci0ously contributing to enhancing the competitiveness of the larger value chain of which it is a part”.
ITC’s diversified status originates from its corporate strategy aimed at creating
multip multiple le drives drives of growt growth h anchor anchored ed on its timetime- tested tested core core compe competen tencie cies: s: and and matched distribution reach, superior brand-buildings capabilities, effective supply chain management and acknowledged service services in hoteliering. Over time, the strategic forays into new business are expected to garner a significant share of these emerging high- growth markets in India.
ITC’s Agri-business is one of India’s largest exporters of agricultural products.
ITC is one of the countries biggest foreign exchange earns (US $ 2 billion last deca decade de). ). The The comp compan any’ y’ss ‘e-c ‘e-cho houp upal al’’ init initia iate te is enab enabli ling ng Indi Indian an agri agricu cult ltur uree significantly enhance its competitiveness by empowering Indian farmers through the power of the internet. This transformation strategy, which has already become the
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subj subjec ectt matt matter er of a case case stud study y at Harv Harvar ard d Busi Busine ness ss Scho School ol,, is expe expect cted ed to progress progressivel ively y create create for ITC a huge rural rural distribut distribution ion infrastr infrastructur ucture, e, significa significantly ntly enhancing the companies marketing the reach.
ITC’s wholly owned information technology subsidiary, ITC InfoTech India
Ltd Ltd is aggr aggress essive ively ly pursin pursing g eme emerg rging ing opport opportuni unitie tiess in provid providing ing end-to end-to-en -end d IT solutions, including e-enabled services and business process outsourcing.
ITC’s ITC’s produ product ction ion facili facilitie tiess and and hotels hotels have have won numero numerous us natio national nal and
inte intern rnat atio iona nall awar awards ds for for qual qualit ity, y, prod produc ucti tivi vity ty,, and and safe safety ty and and envi enviro ronm nmen entt management systems. ITC was the first company in India to be rated for corporate governance by ICRA, an associate of Moody’s investors service, which accorded it the second highest rating, signifying “a high level of assurance on the quality of corporate governance”.
ITC employees over 20000 people at more than 60 locations across India.
Ranked among India’s most valuable companies by the ‘Business Today’ magazine, ITC contin continuou uously sly endeav endeavors ors to enhanc enhancee its wealt wealth h genera generatin ting g capab capabili ilitie tiess in a globalizing environment to consistently reward more than 3.92,488 share holders, fulfill the aspirations of its state holders and meet societal expectations. This overarching vision of the companies expressively captured in its cooperating positioning statement: statement: “Enduring value. For the nation. For the share holder.”
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ORGANIZATIONAL STRUCTURE OF ITC LTD: Today ITC group has evolved into a multi-market, multi technology technology and multiproject organization. Today’s ITC’s business is identified with several divisions and each each is havi having ng its its own own divi divisi sion onal al head head quar quarte ters rs with with regi regist ster ered ed offi office ce at 37, 37, chowringhee, chowringhee, Calcutta.
S.NO
NAME OF THE DIVISION BUSINESS ACTIVITES TRADE INVESTMENT OF ITC LTD:
1
INDIA TOBACCO DIVISION CALCUTTA
Manuf Manufact acture uress and and sells sells cigar cigarett ettes es and smoking tobaccos in domestic and export markets.
2
PACKAGING AN AND PR PRINTING Manufactures Manufactures and sells printed packaging CHENNAI materia erialls for expo exporrt and dome domest stic ic markets.
3
INDIAN LEAF DEVE DEVELO LOPM PMEN ENT T GUNTUR
TOBACCO Develops, purchases, processes and sells DIVI DIVISI SION ON un manufactures tobacco for the export and domestic markets.
4
HOTELS NEWDELHI
DIVISION The owned hotels of the being operated by ITC Hotels Ltd.
5
INTERNATIONAL BU B USINESS Exports of Agri-products, Aqua Foods. DIVISION CALCUTTA
6
TRIBUNE TISSUES DIVISION Manu Manufa fact ctur ures es and and sell sellss wide wide rang rangee of CALCUTTA specially papers for various applications. 40
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ITC has promoted the following business as part of its diversification plans fro times to time as a part of its business strategy. At present the following are the trade investments companies and their business activities.
Name Of The Company
Business Activities
RUSSELL CREDIT LIMITED
FMCG & Tobacco, Hotels & tourism paper
GOLD FLAKE CORPORATION LIMITED & WILLS CORPORATION LIMITED
Manufa Manufact cture ure and sale sale of cigar cigarett ettee filter filter rods.
LAND BASE INDIA LIMITED
Classic Golf Resort
BLIF FINANCE LIMITED
It wa was or originally pr promoted as as a fi financial services services company. company. It is currentl currently y engaged engaged only in recovery of its dues.
ITC INFOTECH IN INDIA LIMITED
India base ca call/ contact center se services.
SURYA NEPAL PRIVATE LIMITED
Manufacture garments.
SRINIVASA RESORTS LIMITED
The company own owns the the “IT “ITC Hotel Kak Kakatiya Sheraton” at HYD, which is operated by ITC limited.
JOINT VENTURE OF ITC LIMITED
Trading in cigarettes and smoking mixtures in USA.
ITC LEADER SHIP:
41
and
sale
of
cigarettes
and
‘roll-your-own’
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Flow Flowin ing g from from th the e conc concep eptt and and prin princi cipl ples es of corp corpor orat ate e governance adapted by the company, leadership within ITC is exercised at three levels.
The Board of Directors at the apex, as trustee of shareholders, carries the responsibility responsibility for strategic supervision of the company.
The The stra strate tegi gicc mana manage geme ment nt of the the comp compan any y rest restss with with the the corp corpor orat atee Management committee comprising the whole time Directors and members drawn from senior management.
The execut executive ive manag manageme ement nt of each each busine business ss divisi division on is veste vested d with with the Divisional Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally focused on the management of its assigned business. This This thre threee- tier tiered ed inte interr link linked ed lead leader ersh ship ip proc proces esss crea create tess a
wholesome balance between the need for focus and executive freedom, and the need for supervision and control.
PRODUCT GROUPS:
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P a g e | 43 A) Cigarette Cigar ettes s & Tobacco Tobac co:
Tobacc Tobacco o consum consumpti ption on has has bee been n a tradit tradition ional al featur featuree of consum consumer er
preference in India, over several centuries. The current annual value of consumer spending in the tobacco sector in India is estimated at over 4s 23,000 crs.
ITC is the market leader in cigarettes in India. With its wide range of
invaluable brands, it has a leadership position in every segment of the market. It’s highly popular portfolio of brands includes India Kings, Gold Flake, Navy Cut, Scissors, Capstan, Berkeley and Bristol.
ITC’ ITC’ss lead leader ersh ship ip is foun founde ded d on its its core core stra strate tegy gy of cont contin inuo uous usly ly
enhan enhancin cing g produ product ct values values throug through h signif significa icant nt inves investm tment entss in produ product ct design, manufacturing technology, quality, marketing and distribution. In just the last 5 years, ITC has made capital investments of over Rs.7 billion in its cigarettes business. In ITC one of the pioneers of market research in India, the consumer is still the King. The company continuously endeavors to provide its consumers products that are benchmarked to international qualit quality. y. This This strat strategi egicc focus focus on the consum consumer er has has paid paid ITC hands handsome ome dividends.
The most important of these is its enriched product mix, unmatched by
competition. ITC’s share of filter cigarettes in Country is more than 70%. 43
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In pursui pursuitt of intern internat ation ional al compet competiti itiven veness ess,, ITC has launc launched hed four four
brands Checkers, Hi-Val, Royal Classic and Gold Crest- in the extremely competitive US market. Recently ITC has launched Royal Classic, Gold Cut and Scissors Filter Kings cigarettes in the Middle-East. The response of these brands has been encouraging. ITC’s cigarettes are produced in its state of-the-art factories at Bangalore, Munger, Saharanpur, and Kolkata. These factories are known for their high levels of productivity and very contemporary and work environment.
INDIA TOBACCO DIVISION:
ITC pioneered the manufacture of cigarettes in India and has since 1910
maintained its leader position in industry the company’s India tobacco division division makes makes the widest range range of cigarett cigarettes es in the country country with brand brand leaders in every segment of the market five of its trade marks Gold Flake, Wills Scissors, Bristol & Capstan features among the top six in the industry. ITC also boasts of a dominant market share by its popular trade marks. The Gold Gold make make famil family y contin continues ues to be the larg largest est singl singlee trade tradema mark rk in the consumer product sector and wills is the largest free standing consumer product brand in India in the premium segment, India Kings and Classic enjoy preeminence. preeminence.
LIST OF AWARDS:
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ITC’s cigarettes business has own numerous awards for its quality, environmental management systems and product excellence:
5 star star rati rating ng from from the the Brit Britis ish h Safe Safety ty Coun Counci cill for for the the Bang Bangal alor oree and and Saharanpur factories.
The Kolkata factory has won the prestigious Greentech safety Gold award for the year 2003-04 in the manufacturing manufacturing sector. This award is in recognition of the high level of performance that the unit has achieved in environment Health & Safety (EHS).
ITC’s ITC’s cigar cigarett ettee factor factories ies in Kolka Kolkatta tta,, Bangal Bangalore ore and and Munger Munger have have bee been n awarded the OHSAS: 18001 Certificate by Det Norske Veritas (DNV) for their occupational Health and Safety Management Systems (OHSMS).
The Kolkata factory has been placed First in Category ‘B’ for having made the bes bestt effo effort rtss towa toward rdss Safe Safety ty Mana Manage geme ment nt in the the Safe Safety ty cont contex extt of the the Confederation of Indian Industry-Eastern Region (CII-ER).
This award recognizes ITC e-Choupal as an exemplary contribution towards deve develo lopm pmen entt
and and
pove povert rty y
alle allevi viat atio ion n
communication communication technologies technologies (ICT).
45
leve levera ragi ging ng
info inform rmat atio ion n
and and
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Corporate social responsibility award from the energy and resources institute (TERI) 2005.
Golden Peacock global award for CSR in emerging economies 2005.
VISION: Sustain ITC’s position as India’s one of the most valuable corporations through world class performance, performance, creating growing value for Indian Economy and the company’s shareholders.
MISSION: To enhan enhance ce the wealth wealth gener generati ating ng capab capabili ility ty to the enterp enterpris risee in a globalizing globalizing environment, delivering superior and sustainable sustainable shareholder shareholder value.
INDIAN LEAF TOBACCO DEVELOPMENT DIVISION :
The leaf tobacco arm of ITC Ltd
The largest buyer, processor and
Exporter of Indian cigarette tobaccos
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Committed to tobacco crop development through Fundamental
and Applied research
A professi professional onally ly managed managed progress progressive ive institut institution ion with with proven proven
leadership in the Indian tobacco industry
For For over over 90 year years, s, we are are iden identi tifi fied ed with with the the intr introd oduc ucti tion on and and deve develo lopm pmen entt of ciga cigare rett ttee toba tobacc ccos os in Indi India. a. Our Our effo effort rtss in ciga cigare rett ttee toba tobacc cco o development and export marketing have enabled India to become the fifth largest cigarette tobacco producer and the eighth largest exporter of cigarette type tobaccos in the world.
We have sophisticated state-of-the-art processing and storage facilities, located in the cigarette tobacco growing regions of India.
ILTD believes in building an enduring relationship with you to create a unique competitive advantage that will enable you to win in the global market place.
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a) FOODS:
ITC made its entry into the branded & packaged foods business in August 2001 with the launch of the Kitchens of India brand. A more board entry has been made since June 2002 with brand brand launches launches in confecti confectioner onery, y, Staples Staples and Snack Foods segments.
The foods business carries forward this proud tradition to deliver quality food products to the consumer. All products of ITC’s Food business available in the market today have been crafted bade on consumer insights developed through extens extensive ive mark market et resear research. ch. Apart Apart from from the the curren currentt portfo portfoli lio o of produc products ts,, several new and innovative products are under development in ITC’s state-ofthe-art product development facility located at Bangalore. Bangalore.
Leadership in the Foods business requires a keen undertaking of the supply chain for agricultural produce. ITC has over the last 90 years established a very close close busine business ss relat relation ionshi ship p with with the farmin farming g comm communi unity ty in India India and is currently in the process of enhancing the Indian formers ability to link to global markets, through the e-Choupal initiative, and produced the quality demanded by its customers. customers. This long-standing long-standing relationship is being leveraged in sourcing best quality agricultural produced for ITC’s Foods business?
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b) LIFE STYLE RETAILING:
Over Over the the lat lat six years years,, ITC’sL ITC’sLife ife style style retail retailing ing Busine Business ss Divis Division ion has
established established a Nation wide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Beginning with its initial offering of Wills sport relaxed wear from the first store at South Extension, New Delhi in July 2000, it has expanded expanded its basket basket of offering to the premium premium consumer consumer with Wills Wills Classi Classicc work work wear, wear, Wills Wills Club Club life life evenin eveningw gwear ear and and a tempti tempting ng range range of designer accessories that complete the Look.
With a distinctive presence across segment at the premium end, ITC has
also also esta establ blis ishe hed d john john Play Player erss as a bran brand d that that offe offers rs a comp comple lete te fash fashio ion n war wardr drob obee to the the yout youth h of toda today. y. With With its its bran brands ds,, ITC ITC aspi aspire ress to buil build d a domina dominant nt prese presenc ncee in the appar apparel el market market throug through h a robust robust portfo portfolio lio of offerings.
ITC’s Wills Life style believes in the philosophy of ‘Enjoying the Change’-
the change that comes through actively exploring one’s own multifaceted ness and stretching one’s limits. This season, Wills Life Style presents a complete fashion Wardrobe that complements every facet of your Lifestyle – at work, when you’re relaxed and while you party.
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c) PAPER BOARDS AND SPECIALITY PAPERS:
ITC is one of the world’s most modern and contemporary manufactures manufactures
of packaging and graphic series of boards. ITC’s Paper Boards business has a manufacturing capacity of3, 60,000 tones per every year and is India’s market leader across all carton – consuming segments including cigarettes, foods, beverages, personal care, pharmacy & toiletries, durables and match shells.
In 1998 the paper boards business commissioned a new production line
for coated boards. This production line incorporated paper machine 4, which was was equipp equipped ed with with a capac capacity ity of 1, 20,000 20,000 tones per annum annum (TPA), (TPA), and finishing equipment sourced from internationally renowned suppliers. This machine has been fitted with a sophisticated Web Detection and inspection system.
The recently commissioned paper Machine 5 at Bhadrachalam has a
capacity of 80, 00 tpa and will help the business offer and UN beatable value proposition in both virgin and recycled boards. This will further strengthen ITC’s leadership position in the value v alue added paperboard.
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d) SPECIALITY PAPERS:
THE Energy Conservation Award 2005-06 by the CII, Eastern Region
to the Tribeni Unit ITC- PSPD. ISO 9001 accreditation in November 1999 from Lloyd Lloydss Regis Register ter,, which which has certif certified ied most most of the the leadin leading g cigar cigarett ettee paper paper manufactures manufactures in the world.
Competition in specialty papers intensified, aided by the reduction in
import duties on the most grades of paper following the 1996 union budget. This led to increase availability of imports, severely impacting margins.
ISO 14001 14001 accre accredit ditati ation on in Decem December ber 2002 2002 from from Lloyd Lloydss Regist Register. er.
Accreditation to quality bodies in UK, and UKAS and RAB. The Gold Award for safety in 1999 from Royal Society for prevention of Accidence (RoSPA), UK, Runners-up in 2000 for the prestigious Golden Peacock Environment Management Management Award, instituted by the World Environment Foundation.
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e) PACKKAGING AND PRINTING:
The packa packagi ging ng and print printing ing busine business ss lever leverag agee its recent recent invest investmen ments ts in technology up gradation to expand its range of offering to include a wider variety of contemporary packing formants. This has enabled it to provide discer discernib nibly ly super superior ior and innova innovativ tivee packa packagin ging g soluti solutions ons not only only to your your comp compan any’ y’ss ciga cigare rett ttes es busi busine ness ss but but also also to the the FM FMCG CG and and pape paperb rboa oard rdss business business.. The enhanced enhanced packagin packaging g capabili capability ty provided provided invaluabl invaluablee support support towards introduction and rollout of several cigarette brands in beveled edge, round corner and pillow packs while also enabling conservation of foreign exchange through import substitution.
SIGNIFICANT AWARD:
The Greentech Environment Award.
Level 7 on the international qualify rating system (IQRS).
British safety council swords of Honour.
CAPEXIL Export Award.
World star, Asia start and India Start Awards for excellence in packaging.
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f) NEW BUSINESS:
The compan company’s y’s tradem trademark ark enjoys enjoys enorm enormous ous goodwi goodwill ll and substa substant ntial ial
consumer franchise. Its goodwill has been built over decades and repents an enormous accumulated investment. In a highly completive environment, the cost of building new trademark is prohibitive.
The year 2004-05 was witness to significant enhancement in ITC’s market
stan standi ding ng in its its neve neverr FM FMCG CG busi busine ness ss.. Ne New w prod produc uctt laun launch ches es,, grow growin ing g consum consumer er accep accepta tance nce and incre increasi asing ng marke markett shar sharee point point to rate rate progr progress ess towards leadership position
PERFORMANCE OF THE STUDY:
Today, tech ITC LTD is providing direct employment for more than
20,000 people and many more indirectly. It is a dynamic corporate entity forever in pursuit of excellence: constant progress and strength and support for its 3 lakh share holders, 150 lakhs retailers and 5 lakh farmer communities. It touches the lives of over 1% of India’s rural population, spreads 60 locations in India and 10 Countries across the world. The ITC group is family which embraces in its ambit both village retailers and financial analysis, farmers and chief executives, serving thousands of Indian families in one way or the other, besides a signifi8cant no. of people overseas.
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ITS ITS comm commit itme ment nt to the the shar shareh ehol olde ders rs in enor enormo mous us and and is payi paying ng
uninterrupted dividend since its incorporation 1910, a period of 88 hears. This is a unique achievement made by the company even though there are certain ups and downs in its business at several times.
The year under the review witnessed strengthening of the company’s
leade eaderrship hip
pos positio ition n
in
the
tobac obaccco,
hot hotels els
&
pac packag kaging ing
bus busines inesss.
Simultaneously, the company is in the process of restructuring its gestating specialty paper investments. In tune with its strategy of sharpening focus on its core business, the company exited the seeds business and substantially disengaged from the edible oils and financial services section, the alter by supporting the merger of ITC Classic Finance Limited (classic finance) with industrial credit and INVESTMENT Corporation India LTD(ICICI).
This disengagement from classic finance involved a significant financial
outlay of nearly Rs.88 crores this includes Rs. 350 crore towards preference capital in ICICI for a period of 20 years at a nominal dividend apart from absorbing a one time restructuring charge of Rs. 53.5 crores in the year under review. The company supported the financial restructuring of classic finance, even through it had no legal obligation to do so, recognize that the financial failure of large NBFC would adversely impact investor’s confidence in this sector and has disrupted orderly economic growth. That would neither have been in the national nor in the interest of the company.
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ISO CERTIFICATION FOR INVESTOR SERVICE:
ITC is one the very few companies in India to receive the covered
Quality Management System Standards ISO 9001:2000 for investor servicing. The certif certifica icatio tion n testif testifies ies to the exempl exemplar ary y standa standards rds that that the compan company’s y’s Inve Invest stor or Serv Servic icee Ce Cent nter er has has achi achiev eved ed in comp comply lyin ing g with with stat statut utor ory y and and regulatory requirements and redressing investor grievances.
FOREIGN EXCHANGE EARNINGS :
ITC continues to view foreign exchange earnings as a key priority.
All business in the ITC portfolio is mandated to engage with over-seas markets in a bid to test competitiveness and seek growth opportunities. THE ITC Grou Group’ p’ss cont contri ribu bute ted d to fore foreig ign n exch exchan ange ge earn earnin ings gs over over the the last last deca decade de amounted to nearly USD 22. Billion, of which agri exports accounted for about USD 1.6 billion. Earnings from agri exports are an indicator of your company’s contribution to the rural economy through effectively linking small farmers with international markets.
During the financial year 2004-05, company subsidiaries and the
ITC welcome group hotel chain together Rs.1378 crs in foreign exchange. Direct foreign exchange earned by the company amounted to Rs.1269 crs. The comp compan any’ y’ss expe expend ndit itur uree in fore foreig ign n curr curren ency cy amou amount nted ed to Rs. Rs. 66 665 5 crs, crs, comprising purchase purchase of raw material, spares and other expenses at Rs. 531 crs, and import of capital goods at Rs. 124 crores.
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SOCIO – ECONOMIC ENVIRONMENR:
Advance estimates of the central Statistical Organization (CSO) for
2004-05 indicates a real GDP growth of 6.9% - well above the exceptions at the commencement of the year. This growth has been achieved despite a less normal monsoon, decline in the Kharif crop output, unprecedented rise in global oil prices and fears of de growth in outsourced IT services from India. The decline in Kharif food grains consequent to the shortfall in southwest monsoon is expected to be offset by improved Rabi output, which is estimated to exceed Kharif production for the first time since 1950-51. the potentially inflationary impact of rising World crude prices has so far been ameliorated through a combat ion of agile fiscal policy and prudent monetary management. Growth in the India IT sector has continued unabated, with software export earnings touching USD 30 billion.
COMPANY PERFORMANCE:
ITC posted yet another year of stellar performance, testifying to the
robustness of the corporate strategy of pursuing multiple drives of growth. The performance performance is even more heartening when viewed in the context of challenges challenges environment of the cigarette industry, impact of the absorption of incubation costs of the new business initiative and the gestation cost of new investments in the hotels and paperboards business. business.
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Gross turnover for the 2004-05 grow by 13% to Rs .13350 crs, driven
by good top line growth across all business of your company. Pretax increased by 15.3% to Rs. 2673 crs, while post –tax profit at Rs, 1873 crs registered a growth of 15.3
MAIN OBJECTIVES OF THE COMPANY : The Th e main main missi ission on of th the e org organiz anizat atio ion n is “con “consu sum mer is sovereign”. In order to achieve, the following are its objective.
Making Indian tobacco Industry internationally competitive.
Making Indian Products International by bringing pride to the
“MADE IN INDIA “Label.
Upgrading of technology for optimization of resource utilization.
Increasing the share of cigarettes in the tobacco industry for
mutua mutuall benefi benefitt to the company company as well well as gover governm nment ent in revenu revenues es and and tax tax generation.
Enhancing their commitment commitment to the national priority as a leading
foreign exchange earner.
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Making ing
their eir
prod produc uctts
and
faci facilliti ities
compar mpara able
with ith
international international standards in product quality and corporate corporate safety.
The important point to note in this is that the company has seized the opportunity of entering into international business by exporting various agriculture and miren products the period 1990-1995 and achieved tremendous growth during this period and also need substantial amount of foreign exchange to our country.
SOCIAL RESPOSIBILITY:
The The comp compan any y is invo involv lved ed in vari variou ouss soci social al deve develo lopm pmen entt activities, in all it’s operational to locations. It is committed for development of the tobacco growing farmer, for which it is carrying extensive Research and Development activities, and ben benef efit itin ing g the the farm farmer erss by way way of intr introd oduc ucin ing g new new farm farm prac practi tice ces, s, high high yiel yieldi ding ng vari variet etie iess and and crop crop cons consis iste tenc ncy y prog progra ram m etc. etc. Apar Apartt from from this this,, the the comp compan any y is acti active vely ly involv involved ed by way way spons sponsors orship hip of variou variouss spots spots and games games even events ts from from time time to time time and and invo involv lved ed in acti activi viti ties es like like provid providing ing drinki drinking ng wate waterr facil faciliti ities, es, healt health h camps, camps, adult adult education programs etc., in a big way.-
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ITC’S AREA OF OPERATIONS:
ANDHRA PRADESH
KARNATAKA
1. Vijayanagaram
1. Mysore
2. Visakapatnam
2. Yelwual
3. Anaparti
3. Hunsur
4. Rajamantri
4. Penapatna
5. Vijayawada
5. Shimago
6. Guntur 7. Cheerala 8. Onogole.
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OPERATING CYCLE OF ILTD: Opera Operatin ting g cycl cyclee is time time durati duration on requir required ed to conver convertt invent inventory ory into into sale, sale, after after conversion of resources into inventories and inventories to sales. Operating cycle starts with the procurement of material and go through stages like: 1. Conversio Conversion n of raw raw materia materiall into work work – in – progre progress. ss. 2. Conversio Conversion n of work work – in – progre progress ss into into finished finished goods. goods. ITC EXCSTING BUSIESS: Tobacco: 1. marketing 2. bran brand d buil buildi ding ng 3. farmer farmer relat relation ionshi ships ps 4. dist distri ribu buti tion on Hospitality:
1. peop people le man manag agem emen entt 2. cust custom omer er serv servic icee 3. bran brand d build buildin ing gs 60
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4. f&b f&b mana manage geme ment nt
Trading:
1. inte intern rnat atio iona nall mark market etin ing g 2. fire firex x mana manage geme ment nt 3. sourcing Paper board:
1. inst instit itut utio iona nall mark market etin ing g 2. manuf manufact acturi uring ng marke marketin ting g Printing& Packaging
1. merche rchen ntisin ising g
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2. instit instituti utiona onall mar market keting ing
HEAD QUARTERS IN CHOWRINGHEE KOLKATTA:
80% OF SALES FROM CIGRATTES & tobacco.
From next 5-7 years ITC wants to change the proportion and generates as much as 40% of its sales from non tobacco business.
‘ITC”S life style + wills sport – apparel, expressions range of greeting ready to eat packaged food.
ITC is leveraging competencies from its exiting business the most notable is the tobacco business distribution expertise – to tap new opportunities.
It all goes well, these diversifications will add Rs 200 corer to ITC’s top line by 2007.
A JOURNEY THROUGH THE 21ST CENTURY ILTD – TH E TALLY COMPANY
1908 – INDIAN LEAF TOBACO DEVELOPMENT COMPANY LIMITED IN CORPERATED IN THE BRITISH ISLES.
1911 1911 – COMM COMMEN ENCE CED D ITS ITS BUYI BUYING NG OF AIR AIR CURV CURVED ED VARI VARIET ETY Y NEAR NEAR MONGHYR ( BIHAR STATE).
1920 – BEGAN EXPERIMENTS TO CULTIVATES VIRTINIA TOBACCO IN ANDHARPRADESH (NEAR GUNTUR).
1926 – REDRYING FACTORY AT CHIRALA.
1933 – FIRST FCV TOBACCO EXPORTED BY COMMENCECEMENT OF OPERATIONS AT ANAPARTI.
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ILTD
TO
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1955 – RESEARCH CENTER AT RAJAMUNDRY.
1962 – INTRODUCTION OF SUN CURED VARIETY AT KURNOOL.
1964 – INTRODUCTIN OF FCV IN KARNATATAKA - ARTC AT HUNSUR.
1975 – MERGER OF ILTD WITH ITC.
1982 – COMMENCEMENT OF GLT PLANT AT ANAPARTI.
1984 1984 – COMM COMMEN ENCE CEME MENT NT OF TOBA TOBACC CCO O AUCT AUCTIO IONS NS,, GRAD GRADIN ING G BY FARMERS.
1991 – SECOND GIL AT CHIRALA.
1992 – BIRTH OF IBD.
1998 – RECORD EXPORTS TURNOVER ABD DIVISIONAL TURNOVER.
1999 – DEVELOPMENT OF ORIENTAL TOBACCO – TIRUPATI.
2000 – PROJECT EVERGREEN.
CONTEMPORY PROCESSING FOR A COMPETITIVE EDEGE:
ILTD ‘S two procession plants at Anaparti and Chirala in A.P compare with the best in the world and are capable of meeting exacting customers customers speciation.
The plants have combined capacity of 300 tones per day.
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Investments Investments of over $75 million or being made for further enhancing threshing technology and doubling capacity over the next 4 years.
Classification Classification and storage system for green leaf are being up graduated to state of the art.
Prod Produc uctt qual qualit ity y spec specif ific icat atio ions ns are are cons consis iste tent ntly ly rede redefi fine ned d to me meet et the the requirements.
Proce Process ssing ing equipm equipment ent such such as thresh threshers ers and class classifi ifiers ers,, redrir redrires, es, press press complex are continuously upgraded through world renowned suppliers.
Inte Intern rnat atio iona nall lly y agre agreed ed me meth thod odss of prod produc uctt qual qualit ity y test testin ing g used used in all all operations including certified CORESTA screens and standards.
The Chirala and Anaparti GLT’s were the first of their kind to receive ISO 9002 accreditation.
The Chirala plant became the first green leaf threshing plant in the world to be accorded the ISO 14001 environmental certification. certification.
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THE PEOPLE ADVANTAGE:
In ILTD, people are its strategic asset, giving the business and definite competitive edge. ILTD’S philosophy aims at nurturing and promoting a work culture that fosters excellen excellence, ce, innovatio innovation, n, compete competence nce and contribu contribution tion.. A professi professional onal environm environment ent promot promotes es the the develo developme pment nt of world world class class talent talent,, skill skillss and expert expertise ise.. Consta Constant nt train training ing and develo developm pment ent ensure ensure that that ILTD’s ILTD’s people people remai remain n at the forefr forefront ont of change through customer orientation and responsiveness, sustaining the company’s leadership by combing the virtues of tradition with modernity, delivering goods & services effectively, with a personal and humane touch. ILTD provides a quality of life to its people that sustain their commitment to excellence.
ONE STOP SHOP FOR QUALITY TOBACCO:
Wit With h 90 year yearss of expe experi rien ence ce in work workin ing g clos closel ely y with with the the farm farmer er and and as exporters exporters of cigaret cigarette te tobacco tobacco forever 65 years, years, ILTD is today in a unique unique position of strength.
Advan Advanced ced techn technolo ology gy suppor supported ted by cost cost nenefi nenefits ts and techni technical cal custo customer mer service give it the global edge. The company’s emphasis on quality, customer satification and safety are benchmarked benchmarked to international international standards.
The range of ILTD’s products decades of partnership woth the farmer, its wide experience in serving export t customers in 37 countries, perennial availability
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of toba tobacc ccos os with with an inve invent ntor ory y of 80 mill millio ion n Kg s roun round d the the year year and and a dedica dedicated ted export export depar departme tment nt have have made made it a one one shop shop for qualit quality y Indian Indian tobaccos. ILTD continues to strengthen its competitive advantage to build on the company’s leadership position in next millennium.
ILTD’s two processing plants at Anaparthi and Chirala in A.P compare with the the best best in the the worl world d and and are are capa capabl blee of me mett ttin ing g extr extrac acti ting ng cust custom omer er spedifications. The plants have a combined capacity of 300 tones per day. Inve Invest stme ment ntss of over over $75 $75 mill millio ion n are are bein being g made made for for furt furthe herr enha enhanc ncin ing g threshing technology and doubling capacity over the next 4 years. State of the equipments, modern quality control labs, sophisticated electronic tools and inst instru rume ment ntat atio ion n with with feed feedba back ck loop loopss ensu ensure re a cons consis iste tent nt end end prod produc uct. t. Proc Proces essi sing ng equi equipm pmen entt such such as thre thresh sher erss and and clas classi sifi fier ers, s, redr redrir ires es are are continuously upgraded through world renounced suppliers.
A RESPONSIBLE CORPORATIVE CITIZEN:
ILTD ILTD part partic icip ipat ates es with with the the loca locall admi admini nist stra rati tion on in its its area areass of oper operat atio ions ns in improving civic amenties, infrastructure, social forestry and sanitation resulting ina marked development of facilites both for resident and vision.
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DATA ANALYSIS AND INTERPRETATION .1.What is Training and Development to you?
4
NO. Of S.No. Options
Percentage Respondents
1
To
2
skills. To learn
in 15
30%
3
organization To learn abilities attitudes of 10
20%
a particular job All of the above Total
20% 100%
4
acquire
knowledge& 15 Behavior
10 50
30%
Interpretation: Interpretation: From above table, it is observed observed that30% of the employees employees are felt that training and development to them is to learn behavior in organization, acquire knowledge and skills, and 20% of employees felt that to learn abilities. The same data is in corporate in the following graph. 67
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4.1
What is Training& Development to you?
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4.2.Training is need for the Development of you?
NO. Of S.No. Options
Percentage Respondents
1 2 3 4
Current project Future Project Personnel All of the above Total
25 15 10 0 50
50% 30% 20% 0% 100%
Interpretation: After observing the above table we can understand that most of the employees felt that the training is needed for the development of their current project project improveme improvement, nt, their percentage percentage is 50%, 30% of the other employees employees said that training is need for the development of future project, remaining employees are said that training is need for development of Personnel growth. No single employee said these all three uses they get from the training.
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4.2
Training is need need for the Development Development of you?
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4.3. What are the factors that influence you to participate in Training program? NO. Of S.No. Options
Percentage Respondents
1 2 3
Voluntary Mandatory Through Management Total
20 18 12 50
40% 36% 24% 100%
Interpretation: After observing the above table we can understand that most of the employees are feel that the Factors to participate into training was taken as voluntary the 40% of the employees are feel like this, and 36% of the people are it gives Mandatory and remaining employees are feel it comes through management.
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4.3
What are the factors that influence you to participate in training program?
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4.4.How many years of service you have in TOBACCO BOARD?
NO. Of S.No. Options
Percentage Respondents
1 2
Less than 5 years 5 to 10 years
6 20
12% 40%
3 4
10-15 years More than 15 years Total
23 1 50
46% 2% 100%
Interpretation: From the above table it is very clear that out of 50 employees,2% employees,2% of employees had had more more than than 15 year yearss of serv servic ice, e,46 46% % of em empl ploy oyes esss had had 10-1 10-15 5 year yearss of service(me).
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4.4
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How many years of service you have in TOBACCO BOARD?
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4.5. Are you satisfied with the training programs given by the TOBACCO BOARD?
NO. Of S.No. 1 2 3 4
Options
Percentage Respondents 20 11 9 10 50
Fully satisfied Satisfied Neutral Dissatisfied Total
40% 22% 18% 20% 100%
Interpretation: From the above table it is observed that out of 50 employees 40 % of employees are highly satisfied with the training programs, the other 40% of employees are satisfied with the training programs provided at TOBACCO BOARD, and remaining 20% are dissatisfied with the training programs.
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4.5
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Are you satisfied with the training programs Given in TOBACCO BOARD?
4.6. How frequent is training
given in your organization?
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NO. Of S.No. Options 1 2 3 4
Quarterly Half yearly Annually Specify to the Requirements Total
Percentage Respondents 5 0 10 35 50
10% 0% 20% 70% 100%
Interpretation: Out of my 5o employees employees 70% of employees felt that training should should be given when ever thetraining requirements arises in the organization . so that it helps than about to achive their organizational objectives effectively.
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How frequent is Training given in your organization?
4.7. How do you think that training is helpful to you?
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NO. Of S.No. Options
Percentage Respondents
1 2 3 4
Increased the productivity Enhanced the skill Made job easier All the above Total
23 10 7 10 50
46% 20% 14% 20% 100%
Interpretation: 46% of the employees said that training is helpful to increase the productivity, 20% of employees felt that to enhance the skills.
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4.7
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How do you think that training is helpful to you?
4.8. Do you realize that
further training is necessary for the present job? NO. Of
S.No. Options
Percentage Respondents
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1 2
Yes NO Total
12 38 50
24% 76% 100%
Interpretation: 76% employees felt that they are satisfied with the present training programs, which is relevant to this job. So they felt that they don’t require future liability.
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86
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Do you realize that further training is necessary for the present job?
4.9. The need for the development for training programs will be identified through?
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NO. Of S.No. Options
Percentage from
Respondents the 27
1
Feedback
2 3 4
employees Feedback from the superiors 10 Management Requirement 4 According to the Company 9
20% 8% 18%
Strategy Total
100%
50
54%
Interpretation: 54%of 54%of the employ employees ees are said said that that traini training ng progra programs ms will will be identified through Feedback from the employees, 20% of the employees are said that training programs will be identified through Feedback from the superiors, 4% of the employees are said that training programs will be identified through Management Requirement, 18% of the employees are said that training programs will be identified through According to the Company Strategy
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4.9
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The Th e ne need ed fo for r th the e de deve velo lopm pmen entt fo for r tra train inin ing g pr prog ogra rams ms wi will ll be identified through?
4.10. What type of help you got from the CLC (Corporate Learning Centre) in the training period at TOBACCO BOARD?
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NO. Of S.No. Options 1 2 3 4
Percentage Respondents 11 7 12 20 50
Excellent Very good Satisfactory Poor Total
22% 14% 24% 40% 100%
Interpretation: Interpretation: From the above table it is very clear that out of 50 employees, 40% of employees felt that the training provided by Corporate Learning Centre is poor 24 % of employees employees said that they have have taken Satisfac Satisfactory tory help from from CL CLC C
(Cor (Corpo pora rate te Le Lear arni ning ng Ce Cent ntre re ) in the the trai traini ning ng perio period d at
TOBA TOBACC CCO O BOAR BOARD, D,
22% 22 % of emplo employe yees es said that that they they have have take taken n
Exc Excell ellent ent help elp fro from CLC in the trai traini nin ng per period iod at TOBAC BACCO BOARD,14% of employees said that they have taken Very Good help from from CLC in the the trai train ning ing per period iod at TOBA OBACC CCO O BOAR BOARD D, 40% of employees said that they have taken taken poor help help from CLC CLC in the training training period at TOBACCO BOARD 4.10
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Wha Whatt ty type pe of he help lp yo you u go gott fr from om th the e CL CLC C (C (Cor orp por orat ate e Learning Centre) in the training period at TOBACCO BOARD?
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FINDINGS OF THE STUDY 1. It was found found that the trainin training g programs programs by which which they can can develop develop their skills skills satisfied employees. 2. It was found that that the employee employeess were given commit committee tee assignm assignments ents when when they are on-the-job- training. They also have classroom sessions/ assignments as a part of the on-the-job training programs. 3. It has been observed observed that employee’s feedback will be collected immediately immediately up to maximum extent after the training program. The employees are enthusiastic about the training programs and they also felt that the training program is interactive. 4. Employees Employees feel feel less enthusiast enthusiastic ic before training training.. On seeing seeing environment environment,, they are keen on attending off-the-job training in a new environment/ setting. 5. It was was obse observ rved ed that that em empl ploy oyee eess were were havi having ng recr recrea eati tion on prog progra rams ms in the the development period. 6. it was was obse observ rved ed that that they they can can over overco come me thei theirr weak weakne ness ss in the the trai traini ning ng programs and can develop new skills. 7. the study study reveals reveals that the trainin training g progr program amss are conduc conducted ted on the the basis basis of company training needs. 8. it was was obse observ rved ed that that em empl ploy oyee eess are are sati satisf sfie ied d with with the the trai traini ning ng prog progra ram m followed by the organization.
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CONCLUSION 1. Training Training progr programme ammers rs are, are, not restrict restricted ed to one one place. place. 2. All the employees employees agreed agreed that that the training training programs programs are necess necessary ary and useful useful for personnel at organization. organization. 3. Most Most of the em emplo ployee yeess felt felt that that regul regular arity ity of train training ing progra programm mmers ers must must be there and selection of personnel for training must be systematic. 4. Most of the the employees employees felt that that there must be class class room room sessions/lectures sessions/lectures as a part of the training program. 5. Trainees Trainees (or) Employe Employees es feel that training training progra program m is very interactive interactive.. 6. Empl Employ oyee eess feel feel that that the the orga organi niza zati tion on has has prop proper er indu induct ctio ion n and and trai traini ning ng programs for new employee. 7. Mostly Mostly on-line on-line methods methods are followed. followed. 8. Most of of the employ employees ees are are satisfied satisfied with with traine trainees. es. 9. Trainees Trainees through through questionna questionnaires ires evaluate evaluate the training training program. program. 10. Internal faculty has biasing in the selection process. process. Majority of respondents preferred out side consultants to be their trainees. 11. Most of the employees employees felt that the training training improves improves relationsh relationship ip between superiors & subordinates. 12. Feedback is collected collected after the training training program. program.
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SUGGESTIONS 1. Each employee should attend a minimum of three of maximum or five months of training program conducted by the organization per year. 2. The The Mana anagem emen entt must ust ensur sure that hat the traini ining out output puts shou shoulld be implemented. 3. It may be suggested that the training program be conducted away from their area of work. 4. The training program should be more be more practical rather than giving lectures. 5. The training program must have problem solving techniques as part of their of program. 6. The company must help the employees to overcome their weakness at the time of training program. 7. The organization should provide recreation program to the employee in order to increase their morale.
QUESTIONNAIRE 95
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I am M.Vijay Gandhi pursuing M.B.A. course in MAHATMA GANDHI COLLEGE, COLLEGE, GUNTUR from undergoing summer training in ITC.LTD. ITC.LTD. Kindly provide provide the required data for successful completion of my study. Please spend your valuable time to me. Thanking you sir. Yours sincerely, M.Vijay Gandhi
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QUESTIONNAIRE 1. What is Training& Developme Development nt to you? A) To learn learn knowled knowledge& ge& skills. skills. B) To learn learn Behavior Behavior in in organizati organization on C) To learn abilities attitudes of a particular job D) All of the above
2 Training is need for the Development of you?
A) A) Cu Current ent pr projec ject
B) Futu uture Pr Projec ject
C) Both
D) None of these
3 According to you which type of training is beneficial?
A) On the job training
B) Off the job training
C) depends depends up on the the Requirement Requirement D) all of the above
4 How many years of service you have in TOBACCO BOARD?
A) Less than 5 years
B) 5 to 10 years
C) 10-15 years years
D) more than 15 years years
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5 Are you satisfied with the training praogrammes given by the TOBACCO
BOARD management? A)Fully satisfied
B)satisfied B) satisfied
C)Neutral C)Neutral
D) dissat dissatisf isfied ied
6 How frequent is Training given in your organization?
A) Quarterly
B) Half yearly
C) Annually
D) Specify to the Requirements. Requirements.
7 How do you think that the training helpful to you?
A) Incr Increa ease sed d the the prod produc ucti tivi vity ty
B) Enha Enhanc nced ed the the skil skilll
C) Made job easier
D) All of the above
8 Do you realize that further training is necessary for the present job?
A) Yes
B) No
C) If yes, kindly specify
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9 The need for the development for training programs will be identified
through? A) Feedback from the employees B) Feedback from the superiors C) Management Requirement D) According to the Company Strategy.
10 What type of help you got from the CLC (Corporate Learning Centre ) in
the training period at TOBACCO BOARD? A) Excellent
B) Very good
C) Satisfactory
D) poor
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BIBLIOGRAPHY 1. PERSONNEL MANAGEMENT
EDWIN, B. FLIPPO
2. PERSONNEL MANAGEMENT
C.B.MEMORIA
3. HUMAN RESOURCE MANAGEMENT
K.ASWATHAPPA
4. ORGANISATIONL BEHAVIOR
STEPHEN.P. ROBIN
5. HUMAN RESOURCE MANAGEMENT
KEITH DAVIS
WEBSITE: www.itcportal.com
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