A STUDY ON

HUMAN RESOURCE MANAGEMENT

IN AIRPORT AUTHORITY OF INDIAM

A PROJECT WORK SUBMITTED TO KRISHNA

UNIVERSITY,VIJAYAWADA

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS MANAGEMENT
SUBMITTED BY

CH. DURGA SAI CHARAN

REGD NO.

UNDER THE GUIDANCE OF

WESTIN COLLEGE OF BUSINESS MANAGEMENT
(Affiliated to KRISHNA UNIVERSITY)
GVR Towers, opp:Vinayaka Theatre Vijayawda.
ACADEMIC YEAR: 2015-2018

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 CERTIFICATION

This is to certify that the project entitled “ A STUDY ON HUMAN RESOURCE

MANAGEMENT IN LARSEN & TOUBRO ” is bonafied work done by MR.T.SRI
KRISHNA MANOHAR, student of 3rd year, belongs to department of Business management
studies, Westin college of Business Management, Vijayawada has been prepared by in a
partial fulfillment of the requirement for the award of the degree of bachelor of business
management.

EXTERNAL EXAMINER (PROJECT GUIDE)

Miss. Uma.

P.CHANDRA SHEKAR
(PRINCIPAL)

2
 DECLARATION

I SRI KRISHNA MANOHAR ,hereby declare that this dissertation project titled
“HUMAN RESOURCE MANAGEMENT IN LARSEN & TOUBRO” is an real time project
work carried out by me , under the guidance of MR. SHANKAR. And has been prepared by
in a partial fulfillment of the requirement for the award of the degree of bachelor of business
management submitted at Westin college of Business Management affiliated to Krishna
university.
The report submitted by me is a bonafied work carried by me of my own efforts and it has not
been submitted to any other University or published any time before.

Signature Of the student

CH. DURGA SAI CHARAN
Date:
Place: VIJAYAWADA

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 Acknowledgement

I would like to convey my deep felt regards to all of my well-wishers, who have contributed
their share of cooperation and help me to complete this project work.
Firstly I would like to thank MR. Durga Prasad Director Westin college of Business
management and Mr. P. Chandrasekhar Principal Westin college of Business Management,
Vijayawada for their encouragement and guidance throughout my project work
I also express my heart full thanks to MR. SHANKAR and other faculty for their support
and encouragement in completion of project report in a elegant form. Last but not least, I
extended my gratitude and courtesy of my family members who helped me in completion of
my project work

CH. DURGA SAI CHARAN

Signature of the student

CH. DURGA SAI CHARAN
Date :
Place:VIJAYAWADA

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INDEX

UNIT I : INTRODUCTION

UNIT II :

2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

UNIT III: RESEARCH METHODOLOGY

UNIT IV: ANALYSIS AND INTERPRETATION

UNIT V :

5.1 FINDINGS

5.2 SUGGESTIONS

5.3 CONCLUSION

UNIT VI:

6.1 BOOKS

6.2 MAGAZINES

6.3 WEBSITES

UNIT VII:

APPENDIX

QUESTIONNAIRE

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INTRODUCTION

Human Resource Management (HRM) is the function within an organization that

focuses on recruitment of, management of, and providing direction for the people who work
in the organization. HRM can also be performed by line managers.

HRM is the organizational function that deals with issues related to people such as
compensation, hiring, performance management, organization development, safety, wellness,
benefits, employee motivation, communication, administration, and training.

HRM is also a strategic and comprehensive approach to managing people and the
workplace culture and environment. Effective HRM enables employees to contribute
effectively and productively to the overall company direction and the accomplishment of the
organization's goals and objectives.

HRM is moving away from traditional personnel, administration, and transactional

roles, which are increasingly outsourced. HRM is now expected to add value to the strategic
utilization of employees and that employee programs impact the business in measurable
ways. The new role of HRM involves strategic direction and HRM metrics and
measurements to demonstrate value.

Staffing is the core component of HRM. Staffing is about setting guidelines and
procedures to guide recruiting and placement. The presence of these staffing procedures will
aid in the effective advertising and reaching out to potential employees. On top of this, the
person interviewing and selecting new staff should be able to identify candidates who are
suitable for the various roles. The interview should be structured to ensure the success of the
interview process as well as the candidate selection.

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 Another key element of HRM is retention. The training of employees to enable them
to improve their career paths is very important. In some situations where an employee is
undergoing through a difficult time in his or her life, an effective Human Resource
Department (HRD) should offer suggestions for support and counseling where appropriate.

Remuneration packages and perks that are associated with the package an employee
has been offered also fall under the remit of the HRD. Good HRM policies ensure that there
are structures in place which show the pay levels for the different positions in an
organization. It is important for the staff to know the career and pay that is available to them.
This is important for both during the time of employment as well as for their career
progresses over time.

Another key component of HRM is performance management. The reason for this is
that many employers use it to assess career progression and to determine pay increases. When
a good performance management policy is in place, effective targets can be set and monitored
regularly. These records are crucial when staffing levels need to be reduced or disciplinary
proceedings are instituted.

A secondary role of HRM is in the management of inter-personal relationships. This covers

staff within departments as well as at an organizational level. The relationship between staff
and management is an important factor in the success of an organization. It sets pace for how
the organization will move forward in achieving their vision. As far as this secondary
function is concerned, the objectives and outcomes are designed to help employees and the
management grow employees and ensure that the interactions within the organization are
fulfilling for every member of staff from the bottom up.

The ultimate focus of HRM is the people within an organization. Regular planning,
monitoring and evaluation are important for the success of HRM. Successful implementation
ensures that all employees know their role, career path and also feel part of an organization
which is able to manage and reconcile their expectations as well as those of the organization
and its objectives

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 .

Functions of Human Resource Management

The major functional areas in human resource management are:

Planning,
Staffing,
Employee development, and
Employee maintenance.

These four areas and their related functions share the common objective of an adequate
number of competent employees with the skills, abilities, knowledge, and experience needed
for further organizational goals. Although each human resource function can be assigned to
one of the four areas of personnel responsibility, some functions serve a variety of purposes.
For example, performance appraisal measures serve to stimulate and guide employee
development as well as salary administration purposes. The compensation function facilitates
retention of employees and also serves to attract potential employees to the organization.

Human Resource Planning: In the human resource planning function, the number and type of
employees needed to accomplish organizational

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goals are determined. Research is an important part of this function because planning requires
the collection and analysis of information in order to forecast human resources supplies and
to predict future human resources needs. The basic human resource planning strategy is
staffing and employee development.

Job Analysis: Job analysis is the process of describing the nature of a job and specifying the
human requirements, such as skills, and experience needed to perform it. The end product of
the job analysis process is the job description. A job description spells out work duties and
activities of employees. Job descriptions are a vital source of information to employees,
managers, and personnel people because job content has a great influence on personnel
programs and practices.

Staffing : Staffing emphasizes the recruitment and selection of the human resources for an
organization. Human resources planning and recruiting precede the actual selection of people
for positions in an organization. Recruiting is the personnel function that attracts qualified
applicants to fill job vacancies. In the selection function, the most qualified applicants are
selected for hiring from among those attracted to the organization by the recruiting function.
On selection, human resource functionaries are involved in developing and administering
methods that enable managers to decide which applicants to select and which to reject for the
given jobs.
Orientation: Orientation is the first step toward helping a new employee adjust himself to the
new job and the employer. It is a method to acquaint new employees with particular aspects
of their new job, including pay and benefit programs, working hours, and company rules and
expectations.

Training and Development: The training and development function gives employees the skills
and knowledge to perform their jobs effectively. In addition to providing training for new or
inexperienced employees, organizations often provide training programs for experienced
employees whose jobs are undergoing change. Large organizations often have development
programs which prepare employees for higher level responsibilities within the organization.
Training and development programs provide useful means of assuring that employees are
capable of performing their jobs at acceptable levels.

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Performance Appraisal: Performance appraisal function monitors employee performance to
ensure that it is at acceptable levels. Human resource professionals are usually responsible for
developing and administering performance appraisal systems, although the actual appraisal of
employee performance is the responsibility of supervisors and managers. Besides providing a
basis for pay, promotion, and disciplinary action, performance appraisal information is
essential for employee development since knowledge of results (feedback) is necessary

Career Planning: Career planning has developed partly as a result of the desire of many
employees to grow in their jobs and to advance in their career. Career planning activities
include assessing an individual employee’s potential for growth and advancement in the
organization.

Compensation: Human resource personnel provide a rational method for determining how
much employees should be paid for performing certain jobs. Pay is obviously related to the
maintenance of human resources. Since compensation is a major cost to many organizations,
it is a major consideration in human resource planning. Compensation affects staffing in that
people are generally attracted to organizations offering a higher level of pay in exchange for
the work performed. It is related to employee development in that it provides an important
incentive in motivating employees to higher levels of job performance and to higher paying
jobs in the organization.

Benefits: Benefits are another form of compensation to employees other than direct pay for
work performed. As such, the human resource function of administering employee benefits
shares many characteristics of the compensation function. Benefits include both the legally
required items and those offered at employer’s discretion. The cost of benefits has risen to
such a point that they have become a major consideration in human resources planning.
However, benefits are primarily related to the maintenance area, since they provide for many
basic employee needs.

Labor Relations: The term “labor relations” refers to interaction with employees who are
represented by a trade union. Unions are organization of employees who join together to
obtain more voice in decisions affecting wages, benefits, working conditions, and other
aspects of employment. With regard to labour relations, the personnel responsibility primarily

10
involves negotiating with the unions regarding wages, service conditions, and resolving
disputes and grievances.

Record-keeping: The oldest and most basic personnel function is employee record-keeping.
This function involves recording, maintaining, and retrieving employee related information
for a variety of purposes. Records which must be maintained include application forms,
health and medical records, employment history (jobs held promotions, transfers, lay-offs),
seniority lists, earnings and hours of work, absences, turnover, tardiness, and other employee
data. Complete and up-to-date employee records are essential for most personnel functions.
More than ever employees today have a great interest in their personnel records.

Personnel records provide the following:

1. A store of up-to-date and accurate information about the company’s employees.

2. A guide to the action to be taken regarding an employee, particularly by comparing him
with other employees.
3. A guide when recruiting a new employee, e.g. by showing the rates of pay received by
comparable employees.
4. A historical record of previous action taken regarding employees.
5. The raw material for statistics which check and guide personnel policies.
6. The means to comply with certain statutory requirements.

Personnel Research: All personnel people engage in some form of research activities. In a
good research approach, the object is to get facts and information about personnel specifics in
order to develop and maintain a programme that works. It is impossible to run a personnel
programme without some pre-planning and post-reviewing. For that matter, any survey is, in
a sense, research. There is a wide scope for research in the areas of recruitment, employee
turnover, terminations, training, and so on. Through a well-designed attitude survey,
employee opinions can be gathered on wages, promotions, welfare services, working
conditions, job security, leadership, industrial relations, and the like. Inspite of its importance,
however, in most companies, research is the most neglected area because personnel people
are too busy putting out fires. Research is not done to put out fires but to prevent them.

11
Research is not the sole responsibility of any one particular group or department in an
organization. The initial responsibility is that of the human resource department, which
however should be assisted by line supervisors and executives at all levels of management.
The assistance that can be rendered by trade unions and other organizations should not be
ignored, but should be properly,use.
Apart from the above, the HR function involves managing change, technology, innovation,
and diversity. It is no longer confined to the culture or ethos of any single organization; its
keynote is a cross-fertilisation of ideas.

HR professionals have an all-encompassing role. They are required to have a thorough

knowledge of the organization and its intricacies and complexities. The ultimate goal of every
HR person should be to develop a linkage between the employee and the organization
because the employee’s commitment to the organization is crucial. The first and foremost role
of HR functionary is to impart continuous education to employees about the changes and
challenges facing the country in general, and their organization in particular. The employees
should know about their balance sheet, sales progress, diversification plans, restructuring
plans, sharp price movements, turnover and all such details. The HR professionals should
impart education to all employees through small booklets, video films, and lectures

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The recruitment and selection belongs to value added HR processes. The recruitment is about
the ability of the organization to source new employees. Keep the organization operating and
improving the quality of the human capital employed in the company. The quality of the
recruitment process is the main driver for the satisfaction of managers with the service
provided by Human Resource.
The main goal of the recruitment and selection is about finding the best recruitment sources,
hiring the best talents from the job market and keeping the organization competitive on the
job market. The recruitment and selection process is about managing high volumes of job
resumes and the ability to choose the right candidates and pushing them quickly through the
organization. The recruitment process usually needs a strong support by the dedicated
recruitment software solution. It can be provided externally, or the software can be run
internally. Many vendors provide the recruitment software solution, but the organization has to
choose carefully the right solution to meet its needs.
In simple words, recruitment and selection refers to the imparting of specific skills,
abilities, knowledge to an employee. A formal definition of recruitment and selection is
determined as follows:
“It is any attempt to improve current or future employee performance by increasing an
employee’s ability to perform through learning, usually by changing the employee’s attitude
or increasing his or her skills and knowledge.”

The objectives of training and development are not limited to just increasing productivity and
efficiency, but the busy market and ceaselessly active competition of today, demands much
more than that from organizations. It’s all thanks to the conditions that a company faces and

13
the race of “growth” that has made the addition of new skills and improvement of the existing
skill-set, which is an extremely important aspect of a business.

Main Objectives of Training and Development.

Below are the 7 main objectives of training and development that must be in your mind as
business, especially HR student.
1. Increased Productivity
2. Quality Improvement
3. Learning time Reduction
4. Safety First
5. Labour Turnover Reduction
6. Keeping yourself Updated with Technology
7. Effective Management

Increased Productivity
For any company, keeping the productivity at its peak is as important as getting in new
customers for business. Since even a slightest of the disturbance can take the business to the
brink of huge losses. Moreover, to tackle with the immensely growing competition in the
target market, it is important for one to increase the productivity of its workers while reducing
the cost of production of the products. So, that’s where the training comes as a savior of the
company, jumps in the scenario and takes it out of the dangers bravely.

Training takes the current capabilities of the workers of a brand, polishes it and makes them
learn and devise new and effective methods of doing the same thing, in a repeated manner. In
other words, the training, if done in a proper way, can give your business a whole new look
with a much powerful base as experienced workers at its core.

Quality Improvement
Improving the quality of the product is obviously one of the main objectives of training and
development since it’s not like those times when customers weren’t such quality conscious.
Today’s customer knows what’s better for him and what’s not. Simply said, those old
methods of some sweet talk and business won’t work for much long, because once they know

14
the reality behind the curtains through the services and products quality, they will leave the
company as it is without giving it, even, a second thought.

Just think of it as if you and your competitor are competing for the same service with some
difference in quality but at the same price, it is obvious that they will choose the one who is
better at handling the task without any quality degradation. Even if your price is a little
higher, then it is most likely the case that most of the customers will come to you.
Learning time Reduction
Keeping an eye on the learning capabilities of employees, and providing them the help which
they need, can be highly beneficial in longer runs. This capability of theirs’ is what that
determines how quickly an employee grabs the newly discovered fact and so, shape the future
products on this discovery. The weaker the capability, the harder it is to learn. But this
scenario can also be supported by the usage of proper learning material and experienced
instructors who prefer real-life experience than cramming. So, reducing the learning time is
also one of the main objectives of training and development.

Safety First
Safety of anyone, either he is a worker, an officer or even a customer, is not something that
can be taken lightly, especially in cases, where one knows that even a minute mistake can
even lead to life threats. Therefore, providing the knowledge, for using the equipment in a
proper way and creating the life-friendly product, also belongs to one of the major objectives
of training and development. The higher, the employees are better at handling equipment, the
better it is both for the company and for the workers.
Labor Turnover Reduction
No business can flourish well while it is regularly turning over its workforce since it is
obvious that every new workforce will require some time to understand the type of work, its
principle and safety precautions, which lead to decreased productivity. Moreover, it also
diminishes the feeling of self-confidence among the workers, and this really isn’t a good
thing.
On the contrary, training ensures that the company doesn’t need to turn over its workforce
again and again because it prepares the employees to face any situation which proves helpful
in bringing in the feeling of workers. Therefore, the workforce feels safe and secure at a
particular job.

15
Keeping oneself Updated with Technology
Computers and mobile phones are the miracles of the past but the world of today is far more
advanced than that. It’s time for latest technologies capable of connecting the world in just a
blink of an eye. Now, earthlings are trying to reach far off planets to get information about the
life force present there. Newer technologies are rolling in and we could continue to list it
down but we haven’t got time for that.

Training and education to the employees keep them updated with the latest of the additions to
the technologies, methods, techniques and processes. Since it also opens a new gateway for
them to look for a way which is greater in productivity and efficiency but decreases the need
of manual work immensely.

For example, spraying of pesticides and herbicides to keep the crop healthy and safe from
invaders with the help of a hand pump is a lot more tiresome work than it would be with the
help of a semi-automated machinery. But how can workers know that such a type of
machinery is available in a market, which cuts the time needed in the matter of hours instead
of days, without any update on what’s going on around the globe?

Effective Management
One of the primary objectives of training and development process is to give rise to a new and
improved management which is capable of handling the planning and control without any
serious problem. With the knowledge and experience gathered through training, acting as the
guiding light for this newly shaped management, it lets them handle the tough decisions and
confusing realities thus opening the way for bigger and better opportunities for business for
the cause of the brand.
The scope of HRM is, indeed, very vast and wide. It includes all activities starting from
manpower planning till employee leaves the organization. Accordingly, the scope of HRM
consists of acquisition, development, maintenance/retention, and control of human resources
in the organization. The same forms the subject matter of HRM. As the subsequent pages
unfold, all these are discussed, in detail, in seriatim.

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The National Institute of personnel Management, Calcutta has specified the scope of
HRM as follows:

1. The Labour or Personnel Aspect:

This is concerned with manpower planning, recruitment, selection, placement, transfer,
promotion, training and development, lay-off and retrenchment, remuneration, incentives,
productivity, etc.

2. Welfare Aspect:
It deals with working conditions, and amenities such as canteen, creches, rest and lunch
rooms, housing, transport, medical assistance, education, health and safety, recreation
facilities, etc.

3. Industrial Relations Aspects:

This covers union-management relations, joint consultation, collective bargaining, grievance
and disciplinary actions, settlement of disputes, etc.

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 Training and development

It is a subsystem of an organization. It ensures that randomness is reduced and learning or

behavioral change takes place in structured format.
TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT
Traditional Approach – Most of the organizations before never used to believe in training.
They were holding the traditional view that managers are born and not made. There were also
some views that training is a very costly affair and not worth. Organizations used to believe
more in executive pinching. But now the scenario seems to be changing.
The modern approach of training and development is that Indian Organizations have realized
the importance of corporate training. Training is now considered as more of retention tool

18
than a cost. The training system in Indian Industry has been changed to create a smarter
workforce and yield the best results.

TRAINING DEFINED
It is a learning process that involves the acquisition of knowledge, sharpening of skills,
concepts, rules, or changing of attitudes and behaviours to enhance the performance of
employees. Training is activity leading to skilled behaviour
• It’s not what you want in life, but it’s knowing how to reach it
• It’s not where you want to go, but it’s knowing how to get there
• It’s not how high you want to rise, but it’s knowing how to take off
• It may not be quite the outcome you were aiming for, but it will be an outcome
• It’s not what you dream of doing, but it’s having the knowledge to do it
• It's not a set of goals, but it’s more like a vision
• It’s not the goal you set, but it’s what you need to achieve it
Training is about knowing where you stand (no matter how good or bad the current situation
looks) at present, and where you will be after some point of time. Training is about the
acquisition of knowledge, skills, and abilities (KSA) through professional development.
Importance of Training and Development
• 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
opportunity and broad structure for the development of human resources’ technical and
behavioral skills in an organization. It also helps the employees in attaining personal growth.
• 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 employees
• Productivity – Training and Development helps in increasing the productivity of the
employees that helps the organization further to achieve its long-term goal
• Team spirit – Training and Development helps in inculcating the sense of team work, team
spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the
employees

19
• 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.
• Organization Climate – Training and Development helps building the positive 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 and Development helps in 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.
• Image – Training and Development helps in creating a better corporate image.
• Profitability – Training and Development leads to improved profitability and more positive
attitudes towards profit orientation.
• Training and Development aids in organizational development i.e. Organization gets more
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.

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 TRAINING AND DEVELOPMENT OBJECTIVES

The principal objective of training and development division is to make sure the availability
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.

Importance of Training Objectives

Training objective is one of the most important parts of training program. While some people
think of training objective as a waste of valuable time. The counterargument here is that
resources are always limited and the training objectives actually lead the design of training. It
provides the clear guidelines and develops the training program in less time because
objectives focus specifically on needs. It helps in adhering to a plan. Training objectives tell
the trainee that what is expected out of him at the end of the training program. Training
objectives are of great significance from a number of stakeholder perspectives.
1. Trainer
2. Trainee
3. Designer

21
4. Evaluator

Trainer – The training objective is also beneficial to trainer because it helps the trainer to
measure the progress of trainees and make the required adjustments. Also, trainer comes in a
position to establish a relationship between objectives and particular segments of training.

Trainee – The training objective is beneficial to the trainee because it helps in reducing the
anxiety of the trainee up to some extent. Not knowing anything or going to a place which is
unknown creates anxiety that can negatively affect learning. Therefore, it is important to keep
the participants aware of the happenings, rather than keeping it surprise.
Secondly, it helps in increase in concentration, which is the crucial factor to make the training
successful. The objectives create an image of the training program in trainee’s mind that
actually helps in gaining attention. Thirdly, if the goal is set to be challenging and motivating,
then the likelihood of achieving those goals is much higher than the situation in which no
goal is Set. Therefore, training objectives helps in increasing the probability that the
participants will be successful in training.

Designer – The training objective is beneficial to the training designer because if the designer
is aware what is to be achieved in the end then he’ll buy the training package according to
that only. The training designer would then look for the training methods, training
equipments, and training content accordingly to achieve those objectives. Furthermore,
planning always helps in dealing effectively in an unexpected situation. Consider an example;
the objective of one training program is to deal effectively with customers to increase the
sales. Since the objective is known, the designer will design a training program that will
include ways to improve the interpersonal skills, such as verbal and non verbal language,
dealing in unexpected situation i.e. when there is a defect in a product or when a customer is
angry. Therefore, without any guidance, the training may not be designed appropriately.

Evaluator – It becomes easy for the training evaluator to measure the progress of the trainees
because the objectives define the expected performance of trainees. Training objective is an
important to tool to judge the performance of participants.

Training and Human Resource Management

22
The HR functioning is changing with time and with this change, the relationship between the
training function and other management activity is also changing. The training and
development activities are now equally important with that of other HR functions. Gone are
the days, when training was considered to be futile, waste of time, resources, and money.
Now-a-days, training is an investment because the departments such as, marketing & sales,
HR, production, finance, etc depends on training for its survival. If training is not considered
as a priority or not seen as a vital part in the organization, then it is difficult to accept that
such a company has effectively carried out HRM. Training actually provides the opportunity
to raise the profile development activities in the organization. To increase the commitment
level of employees and growth in quality movement (concepts of HRM), senior management
team is now increasing the role of training. Such concepts of HRM require careful planning
as well as greater emphasis on employee development and long term education.
Training is now the important tool of Human Resource Management to control the attrition
rate because it helps in motivating employees, achieving their professional and personal
goals, increasing the level of job satisfaction, etc. As a result training is given on a variety of
skill development and covers a multitude of courses.

Role of HRD Professionals in Training

This is the era of cut-throat competition and with this changing scenario of business; the role
of HR professionals in training has been widened. HR role now is:
1. Active involvement in employee education
2. Rewards for improvement in performance
3. Rewards to be associated with self esteem and self worth
4. Providing pre-employment market oriented skill development education and post
employment support for advanced education and training
5. Flexible access i.e. anytime, anywhere training.

Models of Training
Training is a sub-system of the organization because the departments such as, marketing &
sales, HR, production, finance, etc depends on training for its survival. Training is a
transforming process that requires some input and in turn it produces output in the form of
knowledge, skills, and attitudes (KSAs).

23
THE TRAINING SYSTEM
A System is a combination of things or parts that must work together to perform a particular
function. An organization is a system and training is a sub system of the organization. The
System Approach views training as a sub system of an organization. System Approach can be
used to examine broad issues like objectives, functions, and aim. It establishes a logical
relationship between the sequential stages in the process of training need analysis (TNA),
formulating, delivering, and evaluating. There are 4 necessary inputs i.e. technology, man,
material, time required in every system to produce products or services. And every system
must have some output from these inputs in order to survive. The output can be tangible or
intangible depending upon the organization’s requirement. A system approach to training is
planned creation of training program. This approach uses step-by-step procedures to solve the
problems. Under systematic approach, training is undertaken on planned basis. Out of this
planned effort,
one such basic model of five steps is system model that is explained below. Organization are
working in open environment i.e. there are some internal and external forces, that poses
threats and opportunities, therefore, trainers need to be aware of these forces which may
impact on the content, form, and conduct of the training efforts. The internal forces are the
various demands of the organization for a better learning environment; need to be up to date
with the latest technologies.
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
further improvements. The training should achieve the purpose of helping employee to
perform their work to required standards.

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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.
2. The next step is to develop a performance measure on the basis of which actual
performance would be evaluated.
3. Design and provide training to meet identified needs. This step requires developing
objectives of training, identifying the learning steps, sequencing and structuring the contents.
4. 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,
validating information to be imparted to make sure it accomplishes all the goals & objectives.
5. Implementing is the hardest part of the system because one wrong step can lead to the
failure of whole training program.
6. 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 Instructional System Development Model(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
need on the job performance. Training 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
strategies, sequencing the content, and delivering media for the types of training objectives to
be achieved.

The Instructional System Development model comprises of five stages:

1. ANALYSIS – This phase consist of training need assessment, job analysis, and target
audience analysis.

25
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 material,
media selection, methods of evaluating the trainee, trainer and the training 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.

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. 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

26
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
deeply held values of the organization and is independent of current industry environment.
For example, values may include social responsibility, excellent customer service, etc.
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

DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT:

Training and development go hand in hand and are often used synonymously but there is a
difference between them. Training is the process of learning a sequence of programmed
behavior. It is an application of knowledge. It gives people an awareness of the rules and
procedures to guide their behavior. It intends to improve their performance on the current job
and prepares them for an intended job.

27
Development is a related process. It covers not only those activities, which improve job
performance, but also those, which bring about growth of the personality. It helps individual
in the progress towards maturity and actualization of potential capabilities so that they can
become not only good employees but better human beings.

LEARNING AND TRAINING

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

PRINCIPLES OF TRAINING

 MOTIVATION
Learning is enhanced when the learner is motivated. Learning experience must be designed so
learners can see how it will help in achieving the goals of the organization. Effectiveness of
training depends on motivation.
 FEEDBACK
Training requires feedback. It is required so the trainee can correct his mistakes. Only getting
information about how he is doing to achieve goals, he can correct the deviations.
 REINFORCEMENT
The principle of reinforcement tells the behaviors that are positively reinforced are
encouraged and sustained. It increases the likelihood that a learned behavior well be repeated.
 PRACTICE
Practice increases a trainee’s performance. When the trainees practice actually, they gain
confidence and are less likely to make errors or to forget what they have learned.

 INDIVIDUAL DIFFERENCES
Individual training is costly. Group training is advantageous to the organization. Individuals
vary in intelligence and aptitude from person to person. Training must be geared to the
intelligence and aptitude of individual trainee.

OBJECTIVES OF TRAINING

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 TO INCREASE PRODUCTIVITY
An instructor can help employees increase their level of performance on their assignment.
Increase in human performance leads to increase in the operational productivity and also the
increase in the profit of the company.
 TO IMPROVE QUALITY
Better-trained workers are less likely to make operational mistakes. It can be in relationship to
the company or in reference to the intangible organizational employment atmosphere.

 TO HELP A COMPANY FULFILL ITS FUTURE PERSONNEL NEEDS

 The organizations having good internal training and development programs will have to
make less changes and adjustments. When the need arises, vacancies can be easily staffed.
 An endless chain of positive reactions result from a well planned training programme.

 TO IMPROVE HEALTH AND SAFETY

 Proper training can prevent industrial accidents. A safer atmosphere leads to
 More stable attitudes on part of the employees.
 To improve organizational climate

PERSONAL GROWTH
Employees on a personal basis gain individually from their exposure to educational
expressions. Training programmes give them wider awareness and skills

NEED FOR TRAINING

 To impart to the new entrants the basic knowledge and skills they need for definite
tasks.
 To assist employees to function more effectively in their present positions by
exposing them to new concepts.
 To build a line of competent people and prepare them to occupy more responsible
positions.
 To reduce the supervision time, wastage and spoilage of new material.
 To reduce the defects and minimize the industrial accidents.
 To ensure the economical output of the required quality.

29
  To prevent obsolescence.
 To promote individual and collective morale, responsibility and cooperative attitudes
etc.

TRAINING INPUTS
There are three basic types of inputs;
(i)Skills
(ii)Attitude
(iii)Knowledge.
The primary purpose of training is to establishing a sound relationship is at its best when the
workers attitude to the job is right, when the workers knowledge of the job is adequate, and
he has developed the necessary skills. Training activities in an industrial organization are
aimed at making desired modifications in skills, attitudes and knowledge of employee so that
they perform their jobs most efficiently and effectively
.
BEST TIME TO IMPART TRAINING TO EMPLOYEE

1. NEW RECRUITS TO THE COMPANY

These have a requirement for induction into the company as a whole in terms of its business
activities and personnel policies and provisions, the terms, conditions and benefits appropriate
to the particular employee, and the career and advancement opportunities available.

2. TRANSFEREES WITHIN THE COMPANY

These are people who are moved from one job to another, either within the same work area,
i.e. the same department or function, or to dissimilar work under a different management.
Under this heading we are excluding promotions, which take people into entirely new levels
of responsibility.

3. PROMOTIONS

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Although similar to the transferee in that there is a new job to be learned in new surroundings,
he is dissimilar in that the promotion has brought him to a new level of supervisory or
management responsibility. The change is usually too important and difficult to make
successfully to permit one to assume that the promotes will pick it up as he goes along and
attention has to be paid to training in the tasks and the responsibilities and personal skills
necessary for effective performance.

4. NEW PLANT OR EQUIPMENT

Even the most experienced operator has everything to learn when a computer and electronic
controls replace the previous manual and electro-mechanical system on the process plant on
which he works. There is no less a training requirement for the supervisors and process
management, as well as for technical service production control and others.

5. NEW PROCEDURES

Mainly for those who work in offices in commercial and administrative functions but also for
those who we workplace is on the shop floor or on process plant on any occasion on which
there
is a modification to existing paperwork or procedure for, say the withdrawal of materials from
stores, the control of customer credit the approval of expense claims, there needs to be
instruction on the change in the way of working in many instances, a note bringing the
attention of all concerned the change is assume to be sufficient, but there are cases, such as
when total new systems in corporating IT up dates are installed, when more thorough training
is needed.

6. NEW STANDARDS, RULES AND PRACTICES

Changes in any one these are likely to be conveyed by printed note or by word of mouth by
the manager to his subordinates, and this can be the most satisfaction way of dealing with the
change from the point of view of getting those affected to understand their new responsibility.
However not all changes under this heading can be left to this sort of handling. Even the
simplest looking instruction may be regarded as undesirable or impracticable by whoever has
to perform it he may not understand the purpose behind the change and lose confidence in a

31
management which he now believes to be ‘messing about’, or he may understand the purpose
and have a better alternative to offer if it is not too late.

7. NEW RELATIONSHIP AND AUTHORITIES

These can arise, as a result of management decisions, in a number of ways. In examples, the
recognition of the accounts department can result in a realization of responsibilities between
the section leaders of credit control, invoicing and customer records, although there is no
movement of staff between the sections (i.e. no transfers). Although the change in work
content for each clerk and supervisor is defined clearly for each person in the new procedures,
there is nevertheless a need for each person to know where he stands in the new set up, which
is responsible for what, and where to direct problems and enquiries as they arise in the future.

8. MAINTENANCE OF STANDARDS

We are here concerned with maintenance of standards through training, for it must be
remembered that supervision and inspection and qualify control are continuously responsible
for standards and exercise their own authorities to this end. Although it is generally agreed
that some retraining from time to time, taking varied forms even for the on group of
employees, does act as both a reminder and a stimulus, there is not much agreement on the
next frequency and form that such retraining should take, of there is as yet little scientific
knowledge on this subject which is of much use in industrial situations.

9. THE MAINTENANCE OF ADAPTABILITY

Again, whilst there is little scientific study of the loss of ability to learn new skills in those
cases where people spend a long time without change, and without the need to learn, there is
increasing evidence in current experience to suggest that this is the case in industrial
employment. Add, of course, there is the inference arising from the laboratory experiments of
psychologists.

10. THE MAINTENANCE OF MANAGEMENT SKILLS &

STANDARDS

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Skills in supervising, employee appraisal, communications, leadership etc are important in all
companies. Some of these skills are seen to be critical to major developments in company
organization, culture, employee empowerment and so on. Initial training in these skills is not
uncommon in the largest companies on appointment into management and supervision. But
continuous training and performance monitoring is rare, despite the common knowledge that
standards are as varied as human nature.

11. RETIREMENT AND REDUNDANCY

Employees of any position in the company who are heading towards retirement will benefit
from learning about health, social life, work opportunities money management etc. Internal or
external courses are best attended a year or two before retirement date, in a few companies a
member of Personnel will act as a counselor as required.

TYPES OF TRAINING
 Training is required for several purposes. Accordingly training programmes may be of
the following types:
 Orientation training: Induction or orientation training seeks to adjust newly
appointed employees to the work environment. Every new employee needs to be made
fully familiar with his job, his superiors and subordinates and with the rules and
regulations of the organization. Induction training creates self-confidence in the
employees. It is also knows as pre-job training.
 It is brief and informative.
 Job training: It refers to the training provided with a view to increase the knowledge
and skills of an employee for performance on the job. Employees may be taught the
correct methods of handling equipment and machines used in a job. Such training
helps to reduce accidents, waste and inefficiency in the performance of the job.
 Safety training: Training provided to minimize accidents and damage to machinery is
known as safety training. It involves instruction in the use of safety devices and in
safety consciousness.
 romotional training: It involves training of existing employees to enable them to
perform higher-level jobs. Employees with potential are selected and they are given

33
 training before their promotion, so that they do not find it difficult to shoulder the
higher responsibilities of the new positions to which they are promoted.
 Refresher training: When existing techniques become obsolete due to the
development of better techniques, employees have to be trained in the use of new
methods and techniques. With the passage of time employee may forget some of the
methods of doing work. Refresher training is designed to revive and refresh the
knowledge and to update the skills of the existing employees. Short-term refresher
courses have become popular on account of rapid changes in technology and work
methods. Refresher or re-training programmes are conducted to avoid obsolescence of
knowledge and skills.

METHODS OF TRAINING
ON-THE-JOB TECHNIQUES
On the job techniques enables managers to practice management skills, make mistakes and
learn from their mistakes under the guidance of an experienced, competent manager. Some of
the methods are as:
·
Job Rotation: It is also referred to as cross straining. It involves placing an employee on
different jobs for periods of time ranging from a few hours to several weeks. At lower job
levels, it normally consumes a short period, such as few hours or one or two days. At higher
job levels, it may consume much larger periods because staff trainees may be learning
complex functions and responsibilities. Job rotation for managers usually involves temporary
assignments that may range from several months to one or more years in various departments,
plants and offices. Job rotation for trainees involves several short-term assignments, that
touch a variety of skills and gives the trainees a greater understanding of how various work
areas function.For middle and upper level management, it serves a slightly different function.
At this stage, it involves lateral promotions, which last for one or more years. It involves a
move to different work environment so that manager may develop competence in general
management decision-making skills.

Enlarged and enriched job responsibilities:

METHODS OF TRAINING
ON- THE- JOB METHODS

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OFF- THE- JOB METHODS
By giving an employee added job duties, and increasing the autonomy and responsibilities
associated with the job, the firm allows an employee to learn a lot about the job, department
and organization.
·

Job instruction training:

It is also known as step-by-step training. Here, the trainer explains the trainee the way of
doing the jobs, job knowledge and skills and allows him to do the job. The trainer appraises
the performance of the trainee, provides feedback information and corrects the trainee. In
simple words, it involves preparation, presentation, performance, and tryout and follow up.

· Coaching:
The trainee is placed under a particular supervisor who functions as a coach in training the
individual. The supervisor provides the feedback to the trainee on his performance and offers
him some suggestions for improvement. Often the trainee shares some duties and
responsibilities of the coach and relives him of his burden. A drawback is that the trainee may
not have the freedom or opportunity to express his own ideas.

· Committee assignments:
Here in, a group of trainees are given and asked to solve an actual organizational problem.
The trainees solve the problem jointly. This develops team work and group cohesiveness
feelings amongst the trainees.

OFF-THE-JOB TRAINING
It includes anything performed away from the employee’s job area or immediate work area.
Two broad categories of it are:
·

35
IN HOUSE PROGRAMMES
These are conducted within the organizations own training facility; either by training
specialists from HR department or by external consultant or a combination of both.

· OFF-SITE PROGRAMMES
It is held elsewhere and sponsored by an educational institution, a professional association, a
government agency or an independent training and development firm
. The various off- the- job-training programmes are as follows:

· Vestibule training: Herein, actual work conditions are simulated in a classroom. Material,
files and equipment those are used in actual job performance are also used in training. This
type of training is commonly used for training personnel for clerical and semiskilled jobs. The
duration of this training ranges from few days to a few weeks. Theory can be related to
practice in this method.

· Role-playing: It is defined as a method of human interaction that involves realistic

behaviour in imaginary situations. This method involves action doing and practice. The
participants play the
role of certain characters, such as production manager, HR manager, foreman, workers etc.
This method is mostly used for developing interpersonal interactions and relations.

· Lecture method: The lecture is a traditional and direct method of instruction. The
instruction organizes the material and gives it to the group of trainees in the form of a talk. To
be effective, the lecture must motivate and create interest among the trainees. An advantage
of this method is that it is direct and can be used for a large group of trainees.

· Conference or discussion: It is a method in training the clerical, professional and

supervisory personnel. It involves a group of people who pose ideas, examine and share facts
and data, test assumptions and draw conclusions, all of which contribute to the improvement
of job performance. It has an advantage that it involves two way communication and hence
feedback is provided. The participants feel free to speak in small groups. Success depends
upon the leadership qualities of the person who leads the group.

36
 · Programmed instruction: This method has become popular in recent years. The subject
matter to be learned is presented in a series of carefully planned sequential units. These units
are arranged from simple to mere complex levels of instructions. The trainee goes through
these units by answering questions or filling the blanks. This method is expensive and time
consuming.

EXECUTIVE DEVELOPMENT PROCESS

Executives are the people who shape the policies, make the decisions and see their
implementation in any business organization. They are the president, the vice-president, the
managing director, works manager, plant superintendent, controller, treasurer, office
managers, engineers, directors of functions such as purchasing, research, personnel, legal,
marketing etc.

Executive development may be stated as the application of planned efforts for raising the
performance standards of high level managers, and for improving the attitudes and activities
that enter into or influence their work and their work relations.
Following are the steps, which are involved in the development process of executives:

OBJECTIVES

 The first and foremost step is to define the long- term objectives of training and development
of executives.

 STRENGTH AND WEAKNESS

 An inventory of managers is taken with special focus on their strength in terms of managerial
skills and other attributes. Their unique capabilities, specialist knowledge and achievements
are listed down against each. A comparison with the requirement of the organization will
bring the gap in knowledge and skills of existing executive. This is the weakness.

37
 LONG- RANGE PLANS
Here the management prepares long-term training and development plans for their executives,
which include the annual training targets, the annual budgets and the specific area of training.

 SHORT- TERM PROGRAMME

This programme specify the duration, starting time, ending time, number of executives being
trained, identify the resources etc.

 IMPLEMENTATION
The training programme envisaged before is put into operation. The actual training is initiated
by proper timetable and other arrangements.

 EVALUATION
In this step, the effectiveness of the executive training programme is evaluated by measuring
the improved performance of executives who underwent the programme, on their job. There
are various criteria of measuring effectiveness such as validity, reliability etc.

EVALUATING THE EFFECTIVENESS OF TRAINING

An Investor in People evaluates the investment in training and development to assess
achievement and improve future effectiveness. Kearns (1994) suggests that there are four
groups of ‘measures’ of training effectiveness, which are used by organization.
The groups are as follows:
- No Measurement
- Subjective Measures
- Qualitative Measures
- Objective Measures
The first group, in which no real measurement occurs, includes activities undertaken as an
“Act of Faith”, where no form of measurement is attempted, such as initiatives to improve
communications in organization, which seem to make people feel good and appear to have
worked in some intangible manner.
The second group includes subjective responses from trainees/course delegates, as
exemplified by the “Happy Sheet”. The main question asked is about how individuals feel

38
after the training. Organizations often make the assumption that positive responses indicate
training success and therefore value to the organization. However, course delegates may well
give strong positive response scores for a number of reasons, including the presentational
skills of the trainer, the quality of the venue, and the “feel good” factor of indulging in a
creative work group, and so on. Quality measures appear to be more objective than the
previous group, but are often flawed by subjectivity as well. They are typified by
questionnaires asking delegates to “put a value on” the likely benefits of a training
programme. Objective measures are the only really meaningful ones. However, they
challenge the provider of training to demonstrate how their training activities feed through to
the “bottom line”: in terms of return on investment and return on the capital employed. There
has often been an assumption, in times past,that training somehow “justifies itself”, because it
is all about developing people. However, it is incumbent on organizations to look critically at
the ways in which they evaluate their training activities, lest they fall prey to the subject
approach and are badly caught out when a rigorous analysis of all the functions of the
organization’s business is called for. A desirable, if not essential, characteristic of all training
programmes is a built-in provision for evaluation.
The four main dimensions of evaluation are:

EVALUATION OF TRAINING INPUTS

This involves the evaluation of the training curriculum and its sequencing.

EVALUATION OF THE TRAINING PROCESS

The climate of the training organization, the relationship between participants and trainers,
the general attitude, and approaches of the trainers, training methods, etc are some of the
important elements of the training process which also needs to be evaluated.

EVALUATION OF TRAINING OUTCOMES

Measuring the carry-home value of a training programme in terms of what has been achieved
and how much is the main task of evaluation. This, however, is a complex technical and
professional task. Benefits of a training programme are not obvious and they are not readily

39
measurable. Payoffs from training are intangible and rather slow to become apparent. A
central problem is the absence of objective criteria and specific definitions of relevant
variables by which to measure the effectiveness either of specific programmes or changes in
employee behaviour. Nevertheless, the good personnel managers do make an effort to
systematically appraise the benefits and results of their programmes.
In job-related training, the objective is to train people for specific job skills so that their
productivity may increase. Evaluation can be done either to the direct criterion of increase in
output or to the indirect criteria of decrease in cost, breakage or rejects. Even more indirect
are measures that point out changes in absenteeism or turnover. The most difficult problems
of evaluation lie in the area of human relations skill training, which is given to the supervisors
and middle- level managers. Supervisory and managerial training programmes are, for this
reason, less amenable to objective review procedures. Much subjectivity enters into
evaluations of these programmes, since exact standards and criteria are hard to devise.

PERSONNEL & HUMAN RESOURCES DEPARTMENT

Just as ECC has been the story of shaping an institution that stands today for the highest stan
dards of quality, innovation and service to the customers across the globe, its Personnel abd H
uman Resources Department has been a chronicle of attracting, holding and moulding the fine
st talentin India. A strategic business partner, P&HR department, has been key to delivering t
he business advantage. The focus areas of Recruitment and Training ensure the induction and
grooming of talent, supported ably with a robust Performance Management System that help
s nurture a culture of meritocracy. The system wing of P&HR department, which has pionee
red many indigenous IT solutions, has been the backbone of all HR activities.

HR in ECC Division

ECC recognizes that people are the real source of competitive advantage. It is through people
that ECC delivers total customer satisfaction. These values are reflected in our Human
Resources practices which have earned national recognition several times. ECC-ites go
through a process of continuous learning, assisted by training programmes. Apart from on-
the-job training and technical training, over 100 programmes on general management and

40
behavioral topics are conducted each year. Interactive CDROM based programmes have
enabled employees learn at their pace.

HR POLICY

The basic principles of ECC's Human Resources policies include: Recruitment based solely o
n merit by following well‐defined and systematic selection procedures without discrimination
.

Sustain motivated and quality work force through appropriate and fair performance evaluatio
n, reward and recognition systems.

Identify training needs within the Organization and design and implement those need based tr
aining programmes resulting in continuous up gradation of knowledge, skills and attitudes of
the employees. ™

Maintain a quality Human Resource Management System to meet the international standards
as per ISO 9001. Plan, design, train, equip and motivate the department staff to
meet this standard of expectation.

International Human resource management

Human Resource Management (HRM) is set of organizational activities aimed at effectively

managing and directing human resources/labour towards achieving organizational goals.
Typical functions performed by HRM staff would be recruitment, selection, training and
development, performance appraisal, dismissal, managing promotions and so on.

41
Then what is International Human Resource Management (IHRM)?

IHRM can be defined as set of activities aimed managing organizational human resources at
international level to achieve organizational objectives and achieve competitive advantage
over competitors at national and international level. IHRM includes typical HRM functions
such as recruitment, selection, training and development, performance appraisal and dismissal
done at international level and additional activities such as global skills management,
expatriate management and so on.

In simple terms, IHRM is concerned about managing human resources at Multinational

Companies (MNC) and it involves managing 03 types of employees namely,
1. Home country employees- Employees belonging to home country of the firm where the
corporate head quarter is situated.
2. Host country employees- Employees belonging to the nation in which the subsidiary is
situated.
3. Third country employees- These are the employees who are not from home country/host
country but are employed at subsidiary or corporate head quarters. As an example a
American MNC which has a subsidiary at India may employ a French person as the CEO
to the subsidiary. The Frenchman employed is a third country employee.

Differences between domestic HRM and International HRM (IHRM) are summarized below:

 Domestic HRM is done at national level and IHRM is done at international level.
 Domestic HRM is concerned with managing employees belonging to one nation and
IHRM is concerned with managing employees belonging to many nations (Home
country, host country and third country employees)
 Domestic HRM is concerned with managing limited number of HRM activities at
national level and IHRM has concerned with managing additional activities such as
expatriate management.

42
 Domestic HRM is less complicated due to less influence from the external environment.
IHRM is very complicated as it is affected heavily by external factors such as cultural
distance and institutional factors.

International Managers : Each function of HR carries new dimensions in IHRM.

International managers carries these functions at a broader perspective.

Human Resource Planning :

I) Rationalizing workforce globally to leverage the advantage of costs/skills across
its geographical locations and business.
II) Difficulty in trying strategic business planning to HR planning which could be
unique to each location.
III) Difficulty in implementing uniform HR Planning initiative across all locations.
IV) Proving developmental opportunities for international managers.

EMPLOYEE HIRING :
I) Ascertain Culture – Fit with that of the global organization.
II) Ethnocentric, polycentric or geocentric approaches to staffing.
III) Selection of expatriates.
IV) Coping with expatriate failure.
V) Managing repatriation process.
VI) Managing female expatriates.

Training And Development :

i) Emphasis on cultural training.
ii) Language Training.
iii) Training in global etiquette and the nuances of the virtual workplace culture.
iv) Access to training opportunities across all locations.

Compensation :
i) Devising an appropriate strategy to compensate expatriates.

43
 ii) Minimising discrepancies in pay between parents host and third country nationals.
iii) Managing global reward and award policies and its disturbance as per the tax laws
of the land.

Performance Management :
i) Constraints while operating in host countries need to be considered.
ii) Physical distance, time difference and cost of reporting system add to the
complexity.
iii) Identification of raters to evaluate subsidiary performance.

Industrial Relations :
i) Who should handle industrial relations problems of a subsidiary.
ii) What should be the attitude of the parent company towards unions in a subsidiary
?
iii) What ought to be the union tactics in subsidiaries ?

IHRM PRACTICE

ETHNOCENTRICISM : In ethnocentricism, the home country’s culture is sought to be

imposed on subsidiaries. The MNC exports its HR policies and practices from home office to
foreign locations.
Expatriates from the MNC’s home country manage the affairs of the subsidiaries.
Local employees occupy low land and supporting jobs. Past performance at home and
technical competence govern selection criteria for over seas assignments from home office.
Other HR policies and practices too flow from the home country. Performance
appraisal and compensation use parent country standards. The company assesses managers
performances using the same criteria and measures used for home country units. Because of
the national context variations firms may be forced to use different approaches for the
evaluation and promotion of host country managers. Such local adaptations, however have
little effect on the ethnocentric company’s procedures for promotions beyond the lowest
levels of management.

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 When the MNCs use home country executives, training for overseas assignments may
not exist. Except got top level positions, most international assignments are only for a short
span of time. The use to home country evaluation and promotion standards, the lack of
training and the short period assignments limits and discourage culture adjustments for
expatriates.

ETHNOCENTIC POLICY IS JUSTIFIED BY REASONS :

 Perceived lack of competent host country nationals.
 Need to maintain a unified corporate culture among all subsidiaries.
 Greater control and loyalty of home country nationals.
 Key decisions are centralised.

DISADVANTAGES OF ETHNOCENTIC POLICY :

 Host country nationals are denied promotional opportunities.
 Expatriate managers may not be able to adapt to local conditions easily and early.
 Expatriate managers are often poorly trained for international assignments and tend to
commit mistakes.

POLYCENTRICISM :
Polycentricism implies that the multinational corporation seeks to adapt to the local
culture needs to subsidiaries. If a management policy is oriented to suit local needs, or if a
product is customised to meet customer tastes, it is polycentricism in practice.
Polycentricism is more pronounced in the context of human resource practices. In
polycentric staffing, operations out ride the home country are managed by individuals from
the host country. Firms can implement a polycentric approach for top and middle level
managers, for lower-level staff or for non-managers workers. In other HR policies relating to
appraisals and promotions too, local needs out weight other considerations.
Polycentric approach does not provide absolute freedom to subsidiary heads to run
their business as stand alone units. MNC’s usually conduct extensive training programmes in
which host-country managers visit home offices for extended periods. They are trained in the

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company’s culture and are taught how to protect the nuances of corporate culture, respecting,
of course, the host country’s beliefs and values.
As with the ethnocentric approach, polycentric orientation carries with it certain
merits and gets dented because of some drawbacks. Talking about the advantages, it may be
stated that a polycentric approach seeks to eliminate the high cost of relocating expatriate
managers and families. Second, this approach offers a degree of autonomy in decision making
to subsidiary heads. Subsidiary heads are in a better position to adapt to local needs and
tastes. Third, since host country citizens are used, training costs may not be high. Fourth, host
host country nationals are less expensive than deputing home country citizens as expatriates
to work in subsidiaries.
The major drawback of the polycentric approach is the tendency to lose control ones
subsidiaries. Subsidiaries tend to become stand alone companies. Another limitation is that
home country managers may by lost the benefit of gaining exponents overseas markets.

REGIOCENTRIC :
Regiocentric approach operates in the same way as polycentricism. But they differ in
that a polycentric company adapts IHRM practices to countries and regiocentric to regions.
Regocentricism has similar features advantages and limitations as the polycentric orientation.
GEOCENTRICISM : In geocentricism orientation, subsidiary operation are managed
by the best qualified individuals, regards of their nationality. Subsidiaries may choose
managers from the host country from the home country or from a third country. The only
criterion for selection is the merit of the applicant. The capable managers adapt easily and
well to different cultures and usually are bilingual or multi bingual.
Among the advantages of geocentricism is that the company is truly cosmopolitan
second global managers are able to adjust to any business environment- particularly to culture
differences. The major drawback of geocentricism is the additional costs incurred on
trainging and relocation of expat managers compensation of expatriates is higher than for host
country employees.

ADVANTAGES OF GEOCENTRICISM :
 It overcomes the “federation” drawback of the polycentric approach.
 This approach supports coorperation and resource sharing across units.

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  It enables an MNE to develop an international executive team which assists in
developing a global perspective and an internal pool of labor for deployment
throughout the global organization.

DISADVANTAGES OF GEOCENTRICISM :
 Host government want a high number of their citizens employed and may utilize
immigration.
 Most countries require MNE’s to provide extensive documentation if they wish to hire
a foreign national instead of a local national.
 A geocentric policy can be expensive to implement because of increase training and
relocation costs.

EXAMPLE : European telecommunications company Vodafone follow geocentric

approach.
Example Of Regiocentirc : A US Based MNE could create three regions : Europe, the
America’s and Asia-Pacafic Europeon staff would be transferred throughout the European.

PARENTS COUNTRY NATIONALS : PCN/ Expatriate is a person whose

nationality is the same as that of the firm, but different from the country in which they are
working.
For Ex : A Japanese manager working for a UK Based subsidiary of a Japanese company.

ADVANTAGES OF PCN’s :
 Organizational control and coordination is maintained and facilitated.
 Promising managers are given international experience.
 PCN’s may be the best people for the job because of special skills and experiences.
 There is assurance that the subsidiary will comply with MNE objectives, policies etc..,

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DISADVANTAGES OF PCN’s :
 The promotional opportunities of HCN’s are limited.
Adaption to Host-Country may take a long time.
 PCN’s may impose an in appropriate HQ style.
 Compensation for PCN’s and HCN’s may differ.

THIRD COUNTRY NATIONALS :

TCN are employees whose nationality is different from that of either the head quarters
or the subsidiary office.
For Example : An Indian employee working at the Chinese office of the German
Company.

ADVANTAGES OF TCN’s :
 Salary and benefit requirements may be lower than PCN’s.
 TCN’s may be better informed than PCN’s about the host-country environment.

DISADVANTAGES OF TCN’s :
 Transfers must consider possible national animosities. ( eg.., India and Pakistan )
 The host government may resent hiring of TCN’s.
 TCN’s may not want to return to their home country after the assignment.

HOST COUNTRY NATIONALS :

 HCN’s are employees who have the same nationality as the local subsidiary.
 For Example : Chinese employee working at the Chinese subsidiary of the German
Company.

ADVANTAGES OF HCN :
 Language and other barriers are eliminated.
 Hiring costs are reduced and no work permit is required.

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  Continuity of management improves, since HCN’s stay longer in their positions.
 Government policy may dictate hiring of HCN’s.
 Morale among HCN’s may improve as they sea future career potential.

DISADVANTAGES OF HCN’s :
 Control and coordination of HQ may be delay.
 HCN’s have limited career opportunity outside the subsidiary.
 Hiring HCN’s limits opportunities for PCN’s to gain foreign experience.
 Hiring HCN’s could encourage a federation of national rather than global units.

RECRUITMENT METHODS ;

RECRUITMENT :
Recruitment is a process by which a company gets application for their available
vacancies. Good recruitment is important to effectual human resources management. It is
valuable like as many others human resource management process.
Recruitment is the activity that links the employers and the job seekers.

DEFINITION : “Recruitment is the process of searching the candidates for employment

and stimulating them to apply for jobs in the organization”.
The main objective of the recruitment process is to expedite the selection process.

PURPOSE AND IMPORTANCE OF RECRUITMENT :

 Attract and encourage more and more candidates to apply in the organization.
 Create a talent pool of candidates to enable the selection of best candidates for the
organization.
 Determine present and future requirements of the organization in conjuction with its
personnel planning and jobs analysis activities.
 Recruitment is the process which links the employer’s with the employees.
 Increase the pool of job candidates at minimum cost.

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  Helps increase the success rate of selection process by decreasing number of visibility
under qualified or overqualified job applicants.
 Help reduce the probability that job applicants recruited and selection will leave the
organization only after a short period of time.
 Begin identifying and preparing potential job applicants who will be appropriate
candidate.
 Increase organizational and individual effectiveness of various recruitment techniques
and sources for all types of job applicants.

RECRUITMENT PROCESS : The recruitment and selection is the major function of

HRD and recruitment process is the first step towards creating the competitive strength and
recruitment strategic advantage for the organizations.
Recruitment process involves a systematic procedure from sourcing the candidate to

HEAD HUNTING : arranged and conducting the interviews and requires many resources
and time.
A general recruitment process is as follows :

RECRUITMENT METHODS :
Head hunting is a process of recruitment of a prospective employee, who is working else
where and who has a relevant work experience for a particular job profile. Head hunting is
one of the most affective methods for sourcing and getting candidates for top sourcing and
getting candidates for top positions who might not necessarily loose for a job chance.
Head hunting is carried out by the HR of a company or it is outsourced to an agency
or job consultant.
Certain position/ designations lying vacant and no body interesting applied.
When they are looking for certain niche silks competencies and do not want to waste
their time placing ads where unworthy candidates would apply for.
When a certain position is rather confidential and they don’t want to list it publicity on
the market.
For Instance : Certain strategic roles, position that requires making facial decisions recruiters
for head hunting.

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HEAD HUNTING PROCEDURE :
 Understanding client/ recruitment/business.
 Mapping the target companies to head hunting.
 Profile hunting screening and shortlisting.
 Managing interviews, completion of formalities.
 Regular follow up after joining.

TYPES OF HEADHUNTING : There are 3 types of headhunting

1.DIRECT HEADHUNTING : It is method of calling the candidates directly either by

calling on his/her personal number or else meeting them at their homes or at their office. This
is done after research has been done upon that person and the role he is being hired for.
will leave a reference for the person to be head hunted, so that he/she may contact in case he
is willing.

3.THIRD PARTY : This is where the executive search firm comes in the process of
headhunting is outsourced.

“All head hunting is recruitment, but all recruitment is not head hunting “

For Instance : If any HR managers finds that some “ star resources” left some
competencies are not missing. I will then try to search the market for options to replace. It
may so happen than the competency set may not be found. In that case, I would try to contact
any headhunting agency to scan through people of other organizations or from other sources
to try to find out a better match.
“The basic idea is that pool is already narrowed to a few people and we recruit the
best among them”.
There may be issues related to headhunting where ethical issues may creep in along
with confidential data of the prospective employee. It also further depends on how the

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employer tries to use the data that they have obtained. Besides there may issues like if a
person declines the offer, the entire effort and time gets wasted.
All in all, the practice of headhunting may sometimes be misleading, ineffective in
certain cases, but it should be pursed in a professional manner.
E-RECRUITMENT : E-Recruitment is also known as online recruitment, is the practise
of using technology and in particular web-based resources for tasks involved within finding,
attracting, accessing interviewing and hiring new personnel

WHY E-RECRUITMENT ?
To make the process involved more efficient and effective.
Online recruitment can reach a larger tool of potential employees and facilitate
selection process.
Using electronic resources, typically, the internet but also HR software, to guide or
assist the hiring, process in order to reduce the administrative and financial burden of
recruitment and gain access to wider pool of talent.
Business or recruitment companies working on behalf of business, advertise open
positions on these sites and provide instructions for applicants to follow. The initial shift of
applicants will either be performed by the recruitment firm or the business.

ORIGIN OF E-RECRUITMENT :
E-Recruitment originated in the form of independent job sites called bullentin board
system in the 1980’s.
The US started the global trend of e-recruitment when Taylor launched Monster.
Comin 1994 with 20 clients and 200 job openings.
Today more than 3/4th of the fortune 500 companies use online recruiting and
approximately about 18 million people are posting their resumes on internet portals such as
“Monster.com”
“Is the unit technology to attract candidates and aid the recruitment process”.

E-RECRUITMENT PROCESS :
 A general e-recruitment process is as follows :

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 Identify the current needs of employment in the organization.
 Posting the advertisement of job vacancy on job boards (online).
 Managing the response i.e applicant data base.
 Short-Listing of applicant according to job specification.
 Arranging and conducting online interviews.
(By chatting, video conferencing etc.., )
 Decision making regarding further process.

EFFICENCY OF E-RECRUITMENT :

1.TIME EFFIENCY : E-Recruitment system saves lot of time for both

employers and job seekers. It provides round the clock services.

2.COST EFFIENCY : There are no middle person’s involved. The work can’t be
hampered.

3.QUALITY EFFIENCY : Filters ineligible and unsuitable candidates.

TYPES OF E-RECRUITMENT :

1.JOB PORTALS : Posting the position with job description and job specification on the
job portals and also searching for the suitable resume.
For Instance : Naukri.com (India’s First Placed Job Portal)

2.OWN WEBSITE OF THE ORGANIZATION : Campanies can add application

system to their own website where job seekers can submit their resume.

ADVANTAGES OF E-RECRUITMENT :
 Lower costs to the organization(posting online is cheaper than advertising in the news
paper)

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  No intermediaries.
 Reduction in the time for recruitment (over 65% of hiring time )
 Facilities the recruitment of right type of people with the required skills.
 Improved efficiency of recruitment process.

DISADVANTAGES OF E-RECRUITMENT :
 A part from various benefits e-recruitment has its own share of shortcoming and
disadvantages.
 Screening and checking the skill mapping authenticity of million of resumes is a problem
and time consuming exercise for organization.
 There is a low interest penetration and no access and lack of awareness of internet in
many locations across India.
 In countries like India, employers and employers still prefer a face to face interaction on
those sending e-mails.
 Organizations can’t be dependent solely and totally on the online recruitment methods.

CROSS NATIONAL ADVERTING :

INTRODUCTION : Trend is advertising varies across sector. There is shift away from
press advertising to creative alternatives, such as outdoor poster sites, airport lounges, airline
magazine and journey to work route.
Many recruitment advertising providers now operate as part of global networking
order to deliver targeted global campaigns, knowledge about the best suitable recruitment
media, national custom, culture and values are important while developing the themes,
pictures, design and language of the advertisements.

CONCEPTS : Now, world is a global village and a part of globalization, labor migration
is more common and accepted all over the world. At present many companies seek to carry
out cross border when they recruiting senior staff.

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 Brewster(2008) mentioned that the rising apply of advertising such as targeted
outdoor, poster sites- airport lounges, airline magazines and journey to work routes.
Simultaneously international publication like as

“The Economist Magazines “.

“The wall street journals” regularly represent some advertisement for high level posts
in many organizations all over the world. All through that advertising should consider culture
cultural differences, it may well be the case that the valuable targeting of such advertisement
ensures that they are seen more or less totally by people. They are more used to and accepting
of there multi-cultural managers.

SELECTION : Selection is the process of assessing the candidates by various means and
making a choice followed by an offer of employment.
“Selection is the process of differentiating between applicants in order to identify (and hire)
those greater likelihood of success in a hire”

INTERNATIONAL SELECTION TECHNIQUES (Process) : Human resource

selection techniques vary based on a company’s staff and resources. The methods for
selecting employees include preliminary screening, phone interviews, face to face meetings
and HR functions to determine whether a candidate is need suitable for the job.

1.PRELIMINARY SCREENING : Once an employer has received applications

recruiter starts screening the applications or resumes determining which applicants to contact
for the preliminary screening interview. Screening is based on discrete criteria, such as
minimum number of years experience etc..,

2.TELEPHONE INTERVIEW : This give recruiters an opportunities to find out

whether an applicant is still interested in the job. Following the telephone interview the
recruiter typically selects the candidates who were able to arti-culture their skills and
qualifications in a manner that meets the company’s staffing needs.

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3.INPERSON INTERVIEWS : Face to face interviews take time, which is one of the
reasons the applicants pool should be narrowed by conducting preliminary screening and
telephone interviewing. The recruiter is a conduct for providing the hiring manager with the
best-suited candidates, a process that streamlines the selection process. HR selection methods
dictate that at least one face to face interview be conducted before making a decision.

4.CULTURE FIT SELECTION : In the third-round interview, often the decision

round, the hiring manager asks questions that will help determine which candidate fits the
organizational culture. Qualifications aside, an important factor in the hiring decision is
culture fit.
Culture fit means the candidate’s value align with the organizations values. It’s a subjective
analysis and one that hiring managers can only attribute to being a gut feeling, not objective
criteria.

5.VETTING CANDIDATES : Once the hiring manager tells the recruiter who has
been selected as the most suitable candidate, the recruiter dispatches a conditional job offer.
As part of the selection techniques, a conditional offer goes out to the No 1 candidate, while
keeping the runner-up in mind should the first candidate not pass the final stage. The final
stage in what’s now become the vetting process consists of pre-employment matters such as
back ground checks and drug testing. Once the candidate passes the back ground check and
the drug test, the company extends a final offer. The company then sends a rejection letter to
the No 2 candidate now that is knows the No 1 candidate can move forward with the on-
boarding process.

SELECTION TESTS : A selection test is a systematic and standardized procedure of

sampling human behaviour in order to obtain qualified applicants for organizational activities.
It is used to assess the ability, aptitude and personality of prospective candidates.
Selection test is conducted in order to select a right person for the right job who will
be capable of performing organizational activities if hired. Selection test is a device that
reveals the information about the candidate which is not obtained through other steps of
selection.

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TYPES OF TESTS FOR SELECTION :

1.APTITUDE TESTS : These tests measures whether an individual has the capacity or latent
ability to learn a given job if given adequate training. Aptitude can be divided into general
and mental ability or intelligence and specific aptitude such as mechanical, clerical,
manipulative capacity etc..,

INTELLIGENCE TESTS : These tests in general measures intelligence quotient of a

candidates. In detail these tests measures capacity for comprehension, numbers, memory and
space. Other factors such as digit span both forward and backward information known,
comprehension vocabulary picture arrangement and object assembly.
Through these tests are accepted as useful ones, they are criticized against deprived
sections of the community. Further, it is also criticized that these tests may prove to be too
dull as a selection device.

i).MECHANICAL APTITUDE TESTS : These tests measures the capacities of spatical

visualization, perceptual speed and knowledge of mechanical matter. These tests are useful
for selecting apprentices, skilled, mechanical employees technique etc..,

ii).PSYCHOMOTOR TESTS : These tests measures abilities like manual dexterity, motor
ability and eye-hand co-ordination of candidates. These tests are useful to select semi skilled
workers and workers for repetitive operations like packing, watch assembly.

iii).CLERICAL APTITUDE TESTS : Measure specific capacities involved in office work

items of this test include spelling, computation, comprehension, copying, word measuring
etc..,

2.ACHIEVEMENT TESTS : These tests are conducted when applicant claims to know
something as these tests are concerned with what one has accomplished. These tests are more

57
useful to measure the value of specific achievement when an organization wishes to employ
experienced candidates. These tests are classified into

i) JOB KNOWLEDGE TEST : Under this test a candidate is tested in the knowledge of a
particular job. For example : If a junior lectures applies for the job of a senior lecture in
commerce, he may be tested in job knowledge where he is asked questions about accountancy
principle, ranking law, business management etc..,

ii) WORK SAMPLE TEST : Under this test a portion of the actual work is given to the
candidates as a test and candidate is asked to do it. If a candidate applies for a post of lecturer
in management he may be asked to deliver a lecture. On management information system as
work sample test.

3) SITUATION TEST : This test evaluates a candidate in a similar real life situation. In
this test the candidates is asked either to cope with the situation or solve critical situations of
the job.

i) GROUP DISCUSSION : This test administered through group discussion approach to

solve a problem under which candidates are observed in the areas of initiating leading
proposing valuable ideas, conciliating skills, oral communicating skills, coordinating and
concluding skills.

ii) IN BASKET : Situational test is administered through in basket. The candidate, in this
test, is supplied with actual letters, telephone and telegraphic message, reports and
requirements by various officers of the organization, adequate information about the job and
organization. The candidate is asked to take in various items based on the in basket
information regarding requirements in the memoranda.

4.) INTEREST TEST : These tests are inventories of the likes and dislikes of candidates
in relation to work job, occupations, hobbies and recreational activities. The purpose of this
test is to find out whether a candidate is interested or disinterested in the job for which he is a
candidate and to find out in which are of the job range occupation the candidate is interested.

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The assumption of this test is that is a high competition between the interest of a candidate in
a job and job success.

5) PERSONALITY TESTS : These tests prove deeply to discover clues to an

individuals values system, his emotional reactions and maturity and characteristic mood.
They are expressed in such traits like self-confidence, fact, emotional control, optimism,
decision etc..,
Personality tests have disadvantage in the sense that they can be faked by sophisticated
candidates and most candidates give socially acceptable answers. Further, personality
inventories may not successfully predict job success.

INTERVIEWS : An interview is a conversation where questions are asked and answers

are given. In common parlance, the word “ interview” refers to one-on-one conversation with
one person acting in the role of the interviewer and the interviewer and the interviewee. The
interviewer asks questions, the interviewee responds, with participants taking mens talking.
Interviews usually involve a transfer of information from interviewee to interviewer, which is
usually the primary purpose of the interview, although information transfers can happen in
both directions simultaneously. One can contrast an interview which involves bi-directional
communication with a one way flow of information, such as a speech or oration.
Interviews have duration in time, in the sense that the interview has a beginning and an
ending.

TYPES OF INTERVIEWS : General interviews that are taken up by the firms are as
follows :

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1.)FORMAL INTERVIEW : This help in a more formal atmosphere in the employment
office by the employment officer with the help of well structured questions. The time and
place of the interview are stipulated by the employment office.

2) PLANNED INTERVIEW : This is a formal interview carefully planned. The interviewer

has a plan of action worked out in relation to time to be devoted to each candidate, type of
information to be sought, information to be given, the modality of interview and so on. He
may use the plan with some amount of flexibility.

3) PATTERNED INTERVIEW : This is also a planned interview but planned to a higher

degree of accuracy, precision and exactitude. A list of questions and areas are carefully
prepared. The interviewer goes down the list of questions, asking them one after another.

4) NON-DIRECTIVE INTERVIEW : This is designed to let the interviewee speak his

mind freely. The interviewer is a careful and patient listener, prodding when ever the
candidate is silent. The idea is to give the candidate complete freedom to “sell” himself
without encumbrances of the interviewers questions.

5) DEPTH INTERVIEW : This is designed to intensively examine the candidates

background and thinking and to go into considerable detail on a particular subject to special
interest to the candidate. The theory behind it is that if given a job he would take serious
interest in it.

6) STRESS INTERVIEW : This is designed to test the candidate and his conduct and
behaviour by putting him under conditions of stress and strain. This is very helpful to test the
behaviour of individual under disagreeable and trying situations.

7.) GROUP INTERVIEW : This is designed to see how candidates react to and against each
other. All the candidates may be brought together in the office and they may be interviewed.
The candidates way, alternatively given a topic or discussion and be observed as to who will
lead the discussion, how they will participate in the discussion, how each will make his
presentation and how they will react to each other’s views and presentation.

60
8.) PANEL INTERVIEW : This is done by members of the interview board or selection
committee. This is done usually for supervisory and managerial positions. It pools the
collective judgement and wisdom of members of the panel. The candidate may be asked to
meet the panel individually for a fairly lengthy interview.

TYPES OF SELECTION INTERVIEWS FOR INTERNATIONAL

CANDIDATES :

1.)ROUND ROBIN INTERVIEW : In a round-robin interview a candidate will interview

with multiple inter viewer in succession. The key to this interview is giving good consistent
answers. Interviewers will typically meet after to discuss your answers and will uncover any
inconsistencies.

2.) ONE-ON-ONE INTERVIEW : A one-on-one interview is an interview with a single

interviewer. The key to a one-on-one interview is to build rapport with the interviewer. Smile,
be friendly, try to match your interviewer’s energy level typically you will have a short period
of time to make an impact. Know the position and the key attributes the company is seeking
and those things.

3.STRESS INTERVIEW : A stress interview is designed to test your responses in a stressful

environment. The interviewer may try to intimidate you and the purpose is to weed out
candidates who don’t deal well with adversity. The interviewer will make deliberate attempts
to see how you handle yourself using methods such as argumentative style questions, long
awkward silences. The key to a stress interview is to recognize that you are in a stress
interview.

SELECTION CRITERIA FOR INTERNATIONAL STAFFING :

1.)TECHNICAL COMPETENCE : Technical skills are of paramount importance to

perform successfully in his or her job. This is particularly true in an expat who is located way
from the headquarters and any advice or help in case of doubt is not easily available.

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2.) RELATIONAL SKILLS : This refers to ability of the individual to deal effectively with
his/her superiors, peers, subordinates and clients. His requiste becomes all the most critical in
an expat who needs to function in an alien environment. Relational skills include
multicultural sensitivity, interpersonal skills and language and communication skills.

3.ABILITY TO COPE WITH ENVIRONMENT VARIABLES : In the domestic

situation, environment comprises political-legal, cultural, technological and economic factors.
Knowledge about these factors is essential for a manager to be successful. In an international
context, the cultural environment of the host country is more significant. The expat should be
knowledge about the host country nationals, their tastes, attitudes, beliefs, practices, customs
and manners.

4.) FAMILY SITUATION : This refers to the ability of the expat’s family to adjust to living
in the foreign environment. This factor determines the performance or lack of it of the
assignee.

5.) JOB FACTORS : Job factors are similar to the technical competence required in Tung’s
finding. It includes relevant skills that need to be assessed, which included technical skills,
specific to the expat role, familiarity with working in a HQ host unit set-up, basic managerial
skills to lead the team in a cohesive and collaborative manner, and general administrative
capability to organise and drive unit level functions and activities.

6.) RELATIONAL DIMENSIONS : This dimension deals with aspects of personal

characteristics in Tung’s framework, focussing on the assessment of the cultural-fir of the
individual to the particular assignment and country of relocation. Tolerance for ambiguity as
the ability to endure uncertainty when in a new country, keep calm in stressful situations,
behavioural flexibility or the ability to change personal behaviours to adapt to different
situations, non-judge mentalism or an unbiased attitude in dealing with different cultures and
situations.

7.)MOTIVATIONAL STATE : The motivational state is a measure of the individual’s

psychological preparedness and interest in the assignment. The belief that drives the
individual as he or she comes across challenges in carrying out the strategic as well as day-to-

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day activities of the unit, connect/disconnect that the individual experiences in relation to
what is expected of him or her in the role vs.

8.) FAMILY SITUATIONS : Family situation is also inherited from Trug’s theory. Family
requirements are highly interrelated to the expatriates adjustment in the new environment.

9.) LANGUAGE SKILLS : Different in language are considered as a main obstacle for the
communication of people from different countries or areas, and also a reason for cultural
shock. In addition to host country language, non-verbal communication is also very
important.

2.1 Industry Profile

2.1.1Introduction

The Airports Authority of India or AAI under the Ministry of Civil Aviation is responsible
for creating, upgrading, maintaining and managing civil aviation infrastructure in India. It
provides Air traffi c management (ATM) services over Indian airspace and adjoining oceanic
areas. It also manages a total of 125[1] Airports, including 18[2] International Airports,
7 Customs Airports, 78 Domestic Airports and 26 Civil enclaves at Military Airfields. AAI
also has ground installations at all airports and 25 other locations to ensure safety of aircraft
operations. AAI covers all major air-routes over Indian landmass via 29 Radar installations at
11 locations along with 700VOR/DVOR installations co-located with Distance Measuring
Equipment (DME). 52 runways are provided with Instrument landing system (ILS)
installations with Night Landing Facilities at most of these airports and Automatic Message
Switching System at 15 Airports.

AAI's implementation of Automatic Dependence Surveillance System (ADSS), using

indigenous technology, at Kolkata and Chennai Air Traffic Control Centres, made India the
first country to use this technology in the South East Asian region thus enabling Air Traffic
Control over oceanic areas using satellite mode of communication. Performance Based
Navigation (PBN) procedures have already been implemented at Mumbai, Delhi and

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Ahmedabad Airports and are likely to be implemented at other Airports in a phased manner.
AAI is implementing the GAGAN project in technological collaboration with the Indian
Space Research Organization (ISRO), where the satellite based system will be used for
navigation. The navigation signals thus received from the GPS will be augmented to achieve
the navigational requirement of aircraft. First phase of technology demonstration system was
completed in February 2008.

AAI has four training establishments viz. The Civil Aviation Training College (CATC)
at Allahabad, National Institute of Aviation Management and Research (NIAMAR) at Delhi
and Fire Training Centres (FTC) at Delhi & Kolkata. An Aerodrome Visual Simulator (AVS)
has been provided at CATC and non-radar procedural ATC simulator equipment is being
supplied to CATC Allahabad and Hyderabad Airport. AAI has a dedicated Flight Inspection
Unit (FIU) with a fleet of three aircraft fitted with flight inspection system to inspect
Instrument Landing Systems up to Cat-III, VORs, DMEs, NDBs, VGSI (PAPI, VASI) and
RADAR (ASR/MSSR). In addition to in-house flight calibration of its navigational aids, AAI
undertakes flight calibration of navigational aids for the Indian Air Force, Indian
Navy, Indian Coast Guard and other private airfields in the country.

AAI has entered into Joint

Ventures at Mumbai, Delhi, Hyderabad, Bangalore and Nagpur Airports to upgrade these
airports.

2.1.2 HISTORY
The Government of India constituted the International Airports Authority of India (IAAI) in
1972 to manage the nation's international airports while the National Airports Authority
(NAA) was constituted in 1986 to look after domestic airports. The organizations were
merged in April 1995 by an Act of Parliament, namely, the Airports Authority of India Act,
1994 and has been constituted as a Statutory Body and was named as Airports Authority of
India (AAI). This new organization was to be responsible for creating, upgrading,
maintaining and managing civil aviation infrastructure both on the ground and air space in the
country.
Some of the major initiatives in this area are introduction of Reduced Vertical Separation
Minima (RVSM) in Indian air space to increase capacity and reduce congestion in the air;

64
implementation of GPS Aided GEO Augmented Navigation (GAGAN) jointly
with ISRO which when put to operation would be one of the four such systems in the world.
AAI is a full member of the Civil Air Navigation Services Organization(CANSO)

INDIAN CARGO:

That’s why when you think of transporting goods in and out of India, Air
India is your logical choice. An option which lakhs of corporate and
international enterprises have made. We have the infrastructure and the
network to ensure smooth transportation and delivery of cargo.
Air India’s cargo operations give you a capacity advantage over a network
combined with 58 domestic and 29 international stations.

Country Frequency
7 to New York / 10 to Newark/ 3 to San Francisco. With wide trucking
Usa network in USA to to more than 50 interior points
UK 25 to London / 7 to Birmingham
7 to Frankfurt / 7 to Paris / 3 to Moscow / 3 to Rome / 4 to Milan / 3 to
Europe Vienna
South Asia 7 to Dhaka / 15 to Kathmandu / 14 to Colombo / 14 to Male / 4 to Kabul
Far East Asia 7 to Hongkong / 4 to Seoul / 3 to Osaka / 5 to Shanghai / 4 to Tokyo
South East Asia 14 to Bangkok / 21 to Singapore / 4 to Yangon
Australia 3 to Melbourne / 4 to Sydney
4 to Bahrain / 3 to Dammam / 46 to Dubai / 14 to Jeddah / 7 to Kuwait /
Middle East 12 to Riyadh / 14 to Sharjah / 24 to Muscat

65
IT Implementation

AAI website is a website giving a host of information about the organization besides
domestic and international flight schedules and such other information of interest to the
public in general and passengers in particular.

HRD Training

AAI has a number of training establishments, viz. NIAMAR in Delhi, CATC in Allahabad,
Fire Training Centres at Delhi & Kolkata for in-house training of its engineers, Air Traffic
Controllers, Rescue & Fire Fighting personnel etc. NIAMAR & CATC are members of ICAO
TRAINER programme under which they share Standard Training Packages (STP) from a
central pool for imparting training on various subjects. Both CATC & NIAMAR have also
contributed a number of STPs to the Central pool under ICAO TRAINER programme.
Foreign students have also been participating in the training programme being conducted by
these institution

The civil aviation industry in India has emerged as one of the fastest growing industries in the
country during the last three years. India is currently considered the third largest domestic
civil aviation market in the world. India is expected to become the world’s largest domestic
civil aviation market in the next 10 to 15 years, as per Mr Jayant Sinha, Union Minister of
State for Civil Aviation, Government of India.
According to International Air Transport Association IATA, India will displace the UK for
the third place in 2025.
The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as
low-cost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic
airlines, advanced information technology (IT) interventions and growing emphasis on
regional connectivity.

Market Size

66
Domestic air traffic rose 17.69 per cent year-on-year in December 2017, continuing its double
digit growth, according to the civil aviation regulator Directorate General of Civil Aviation
(DGCA). About 11.24 million passengers flew in December 2017, up from 9.55 million a
year earlier. Passengers carried by domestic airlines during 2017 were 117.1 million as
against 99.89 million during the corresponding period of previous year, thereby registering a
growth of 17.31 per cent, as per the DGCA.
As of December 2017, the existing fleet of aircraft stands at 548 aircraft in India, and another
920 aircrafts are expected to be inducted into the fleet by 2025.

Present Scenario of Airways in India:

Government of India has embraced a new 'Open Skies' policy. Private companies in
India, with predetermined foreign partnership, if needed, can now vie with two major public
undertakings - Indian Airlines and Air India. Excluding Indian Airlines, now there are various
scheduled private airlines, rendering regular domestic services. Presently there are several
players in the field of airlines in India. They are namely, Kingfisher Airlines, Jet Airways and
Jet Life, Air India, Indigo, Spice Jet, Paramount Airways and many more. Airport Authority of
India (AAI) looks after all the civil airports in India. Providing secured, competent air traffic
services and aeronautical communication services is the basic occupation of Airport
Authority of India.

After the independence of the country, aviation industry has made considerable
progress. India has both domestic and international airlines. Domestic airlines operate

67
regularly between all important towns. However, the international airlines have a limited
number of air connections with other countries. In Indian sub-continent, air services are
controlled by the Indian Airlines.

Investment
According to data released by the Department of Industrial Policy and Promotion (DIPP),
FDI inflows in air transport (including air freight) between April 2000 and September 2017
stood at US$ 1.59 billion.
India is estimated to see an investment of US $25 billion in the next decade in the airports
sector, and traffic growth of 13 per cent, according to Morgan Stanley. According to them,
the share of air travel in air and rail travel combined in India will grow to 15.2 per cent by
2027 from 7.9 per cent now.
Capex plans to the tune of Rs 65,000 crore (US$ 10.08 billion) have been finalised by the
Airports Authority of India with Rs 17,500 crore (US$ 27.13 billion) for the next five years
and around Rs 22,000 crore (US$ 3.41 billion) for brownfield expansion in Delhi, Mumbai,
Hyderabad and Bengaluru by private operators and around Rs 21,000 crore (US$ 32.55
billion) for greenfield airports.
Key investments and developments in India’s aviation industry include:

The Airports Authority of India (AAI) will undertake new development works at Lucknow,
Deoghar, Rajkot and Allahabad airports. The objective is to improve and develop airport
infrastructure to meet growing traffic demands. AAI plans to construct new integrated
passenger terminal building at Chaudhary Charan Singh International Airport, Lucknow at an
estimated cost of Rs. 1,230 crore (US$ 190.65 million). The new terminal will be able to
handle 4000 passengers during peak hour and 6.35 million passengers per annum.

2.1.3 Government Initiatives

Some major initiatives undertaken by the government are:

 Under the second round of Regional Connectivity Scheme (RCS 2) the government
has awarded 325 routes to airlines as well as helicopter operators with the objective of
enhancing flight services to hilly and remote areas. Under the scheme airline operators

68
 have to offer half of their seats at discounted rates and helicopter operators can offer
up to 13 seats at lower fares with the government providing Viability Gap Funding
(VGF) or subsidy to airlines and helicopter operators.
 Constructing 17 highways-cum-airstrips are the government's priorities and it will
start work on them this year, Union Minister Nitin Gadkari has said. The projects are
designed in such a fashion that the roads will double up as airstrips and traffic will be
stopped when an airplane lands or takes off. The road and air connectivity will also
provide better access to remote areas.
 Airport building and modernization projects worth over Rs 19,300 crore (US$ 2.99
billion) have been recommended green clearance, in line with the Government of
India’s focus on improvement in regional air connectivity.

Road Ahead
India’s aviation industry is largely untapped with huge growth opportunities, considering that
air transport is still expensive for majority of the country’s population, of which nearly 40 per
cent is the upwardly mobile middle class.
The industry stakeholders should engage and collaborate with policy makers to implement
efficient and rational decisions that would boost India’s civil aviation industry. With the right
policies and relentless focus on quality, cost and passenger interest, India would be well
placed to achieve its vision of becoming the third-largest aviation market by 2025.
In the coming 20 years, Indian companies will buy 2,100 new planes worth US$ 290 billion.
Also, domestic air traffic in India is expected to cross 150 million in FY19, on the back of
unprecedented capacity induction by airlines*.
Exchange Rate Used: INR 1 = US$ 0.0155 as of January 4, 2018.
 Freight traffic on airports in India is expected to cross 11.4 million tonnes by 2032.
 Growth in import and export in India will be the key driver for growth in freight traffic as 30
per cent of total trade is undertaken via airways.
 Airports across the globe are planning on increasing their spending on new technology to
keep up with surging passenger traffic, which is expected to double to 370 million by 2020.
The anticipated double digit growth would make India as the world’s 3rd largest aviation
market by 2020.

69
 Fliers would soon be able to use biometric details for security checks at airports after good
feedback from a pilot project.

Source: Airports Authority of India

 Domestic passenger traffic expanded at a CAGR of 11.46 per cent over FY06–17
 According to Directorate General of Civil Aviation, domestic passenger traffic witnessed
growth at a rate of 22 per cent, in comparison 21.24 per cent in FY16.
 International passenger traffic registered growth at a CAGR of 8.33 per cent over FY06-17.
 During February 2017, domestic airlines carried over 8.23 million passengers, showing a
growth of more than 23 per cent compared to the same period last year.
 During FY17, domestic passenger traffic increased by 22 per cent in comparison with growth
rate of 21.24 per cent in FY16.
 During FY16, international passenger traffic increased by 7.72 per cent.

70
Notes: FY - Indian Financial Year (April - March), CAGR - Compound Annual Growth Rate

Source: Airports Authority of India, Ministry of Civil Aviation

2.1.5 Privatization of Airports

The AAI was involved in a tussle with the Ministry of Civil Aviation over the issue of
71reenfield71on of its two most profitable airports at Delhi and Mumbai. The Government of
India handed over these two airports to private companies for the purpose of 71reenfield71on
in 2006 under revenue sharing agreement to the GMR Group and GVK group respectively.
The Nagpur Airport was transferred to the Maharashtra State owned MADC.

71
In addition to these, several 72reenfield airports are being operated by Private
consortiums,[5] namely, Cochin International Airport (first of its kind in India), Bengaluru
International Airport, Kazi Nazrul Islam Airport at Durgapur in West Bengal, and Rajiv
Gandhi International Airport at Hyderabad. Has stated that, Central Government is working
on adopting the ‘Land Pooling’ methodology as an alternative mechanism for development
and expansion of airports. Under ‘Land Pooling’ mechanism, various land owners pool their
land and hand it over to the infrastructure development authority. These land owners get back
60-70% of their land after infrastructure is developed on it. This 60-70% land will have much
higher valuation as compared to the total 100% holding before the infrastructure was
developed. On the other hand, the 30-40% of land retained by the developer (without paying
acquisition cost) is used to fulfill its objective. Thus, ‘Land-Pooling’, theoretically turns out
to be a win-win situation for the land holder as well as for the developer.

‘Land-Pooling’ methodology for urban development has so far been adopted in Gujarat,
Andhra Pradesh and Maharashtra. Currently, Centre for Environmental Planning and
Technology (CEPT), Ahmedabad has been assigned a task to explore the possibility of
adopting ‘Land-Pooling’ for development of three Greenfield airports and expansion of three
brownfield airports. ‘Land Pooling’ as an alternate mechanism to ‘Land Acquisition’ for
Airport Expansion:

Indian aviation space has witnessed a significant surge in air passenger traffic in recent years.
In order to accommodate this growth, AAI has already chalked out plans to expand current
capacities of terminals and bays at airports. However the increased capacity too will be
saturated on account of high growth and more land will be needed for further expansion.

So far, State Governments were providing the land free of cost to AAI. However, since
January 2015, when the First Schedule to the Right to Fair Compensation and Transparency
in Land Acquisition, Rehabilitation and Resettlement Act, 2013 came in to force, cost of
acquiring land for State governments has shot up significantly and they have become
reluctant to acquire and hand over the land to AAI for expansion. In this situation, ‘Land
Pooling’ emerges as the only available and viable alternative for airports expansion.

72
 2.2 COMPANY PROFILE:

Airports Authority of India (AAI) was constituted by an Act of Parliament and came
into being on 1st April 1995 by merging erstwhile National Airports Authority and
International Airports Authority of India

Airports Authority of India (AAI) manages a total of 125 Airports, which

include 11 International Airports, 08 Customs Airports, 81 Domestic
Airports and 25 Civil Enclaves at Defence Airfield s. AAI also provides Air
Traffic Management Services (ATMS) over entire Indian Air Space and
adjoining oceanic areas with ground installations at all Airports and 25
other locations to ensure safety of Aircraft operations.
The Airports at Ahmedabad, Amritsar, Calicut, Guwahati, Jaipur,
Trivandrum, Kolkata & Chennai, which today are established
as International Airports, are open to operations even by Foreign
International Airlines. Besides, the International flights, National Flag
Carriers operate from Coimbatore, Tiruchirappalli, Varanasi, and Gaya
Airports. Not only this but also the Tourist Charters now touch Agra,
Coimbatore, Jaipur, Lucknow, Patna Airports etc.
AAI has entered into a Joint Venture at Mumbai, Delhi, Hyderabad,
Bangalore and Nagpur Airports to upgrade these Airports and emulate the

73
world standards.
The merger brought into existence a single Organization entrusted with the
responsibility of creating, upgrading, maintaining and managing civil aviation
infrastructure both on the ground and air space in the country.
AAI manages 125 airports, which include 18 International Airport, 07 Customs
Airports, 78 Domestic Airports and 26 Civil Enclaves at Defense airfields. AAI
provides air navigation services over 2.8 million square nautical miles of air space.
During the year 2013-14, AAI handled aircraft movement of 1536.60 Thousand
[International 335.95 & Domestic 1200.65], Passengers handled 168.91 Million
[International 46.62 & Domestic 122.29] and the cargo handled 2279.14 thousand MT
[International 1443.04 & Domestic 836.10].

1.Passenger Facilities

The main functions of AAI inter-alia include construction, modification &

management of passenger terminals, development & management of cargo terminals,
development & maintenance of apron infrastructure including runways, parallel
taxiways, apron etc., Provision of Communication, Navigation and Surveillance which
includes provision of DVOR / DME, ILS, ATC radars, visual aids etc., provision of air
traffic services, provision of passenger facilities and related amenities at its terminals
thereby ensuring safe and secure operations of aircraft, passenger and cargo in the
country

74
2. Air navigation Services

In tune with global approach to modernization of Air Navigation infrastructure for

seamless navigation across state and regional boundaries, AAI has been going ahead
with its plans for transition to satellite based Communication, Navigation, Surveillance
and Air Traffic Management. A number of co-operation agreements and memoranda
of co-operation have been signed with US Federal Aviation Administration, US Trade
& Development Agency, European Union, Air Services Australia and the French
Government Co-operative Projects and Studies initiated to gain from their experience.
Through these activities more and more executives of AAI are being exposed to the
latest technology, modern practices & procedures being adopted to improve the overall
performance of Airports and Air Navigation Services.

Induction of latest state-of-the-art equipment, both as replacement and old equipments

and also as new facilities to improve standards of safety of airports in the air is a
continuous process. Adoptions of new and improved procedure go hand in hand with
induction of new equipment. Some of the major initiatives in this direction are
introduction of Reduced Vertical Separation Minima (RVSM) in India air space to
increase airspace capacity and reduce congestion in the air; implementation of GPS
And Geo Augmented Navigation (GAGAN) jointly with ISRO which when put to
operation would be one of the four such systems in the world.

3.Security

The continuing security environment has brought into focus the need for strengthening
security of vital installations. There was thus an urgent need to revamp the security at
airports not only to thwart any misadventure but also to restore confidence of traveling
public in the security of air travel as a whole, which was shaken after 9/11 tragedy. With
this in view, a number of steps were taken including deployment of CISF for airport
security, CCTV surveillance system at sensitive airports, latest and state-of-the-art X-ray
baggage inspection systems, premier security & surveillance systems. Smart Cards for

75
access control to vital installations at airports are also being considered to supplement the
efforts of security personnel at sensitive airport.

4.Aerodrome Facilities

In Airports Authority of India, the basic approach to planning of airport facilities has
been adopted to create capacity ahead of demand in our efforts. Towards
implementation of this strategy, a number of projects for extension and strengthening
of runway, taxi track and aprons at different airports has been taken up. Extension of
runway to 7500 ft. has been taken up to support operation for Airbus-320/Boeing 737-
800 category of aircrafts at all airports.

5.HRD Training
A large pool of trained and highly skilled manpower is one of the major assets of
Airports Authority of India. Development and Technological enhancements and
consequent refinement of operating standards and procedures, new standards of safety
and security and improvements in management techniques call for continuing training
to update the knowledge and skill of officers and staff. For this purpose AAI has a
number of training establishments, viz. NIAMAR in Delhi, CATC in Allahabad, Fire
Training Centers at Delhi & Kolkata for in-house training of its engineers, Air Traffic
Controllers, Rescue & Fire Fighting personnel etc. NIAMAR & CATC are members of
ICAO TRAINER programme under which they share Standard Training Packages
(STP) from a central pool for imparting training on various subjects. Both CATC &
NIAMAR have also contributed a number of STPs to the Central pool under ICAO
TRAINER programme. Foreign students have also been participating in the training
programme being conducted by these institution.

6.IT Implementation
Information Technology holds the key to operational and managerial efficiency,
transparency and employee productivity. AAI initiated a programme to indoctrinate IT
culture among its employees and this is most powerful tool to enhance efficiency in the
organization. AAI website with domain
name www.airportsindia.org.in or www.aai.aero is a popular website giving a host
of information about the organization besides domestic and international flight
information of interest to the public in general and passengers in particular.

76
2.2.2 Board Members Of AAI
Chairman

Dr. Guruprasad Mohapatra, IAS

Ex-Officio Member:

B S Bhullar, IAS Director General of Civil Aviation

Part-Time Members (Official):

Shri Arun Kumar, IAS Joint Secretary, Ministry of Civil Aviation

Ms. Gargi Kaul, IA & AS Joint Secretary & Financial Advisor,
Ministry of Civil Aviation

Whole –Time Members:

Shri S. Raheja Member (Planning)

Shri S. Suresh Member (Finance)
Shri Anuj Aggarwal Member ((Human Resource)
Shri A.K. Dutta Member (ANS)
Shri I N Murthy Member (Operations)

2.2.3 Functions Of AAI

77
The functions of AAI are as follows:

1. Design, Development, Operation and Maintenance of international and

domestic airports and civil enclaves.
2. Control and Management of the Indian airspace extending beyond the
territorial limits of the country, as accepted by ICAO.
3. Construction, Modification and Management of passenger terminals.
4. Development and Management of cargo terminals at international and domestic
airports.
5. Provision of passenger facilities and information system at the passenger
terminals at airports.
6. Expansion and strengthening of operation area, viz. Runways, Aprons,
Taxiway etc.
7. Provision of visual aids.
8. Provision of Communication and Navigation aids, viz. ILS, DVOR,

78
Vijayawada International Airport

2.2.4 History

The airfield located at Gannavaram (Kesarapalli) served as an army base during the World
War II, after which it was converted into a civilian airport. Air Deccan introduced a daily
service between Hyderabad and Vijayawada in September 2003. Until 2011, the airport had
only four flights a day operated by Kingfisher Airlines. In 2011, flag carrier Air India and
private airlines Spicejet and Jet Airways introduced direct flights to the airport. Air Costa, a
regional airline started operations in October 2013, with Vijayawada as its operational hub,
which later suspended its operations in February 2017. Vijayawada Airport was declared as
an international airport by Government of India on 5th May 2017. President signed officially
effecting international status from 1-8-2017.

Structure and amenities

A Panorama of New Terminal

The airport covers an area of 537 acres (217 ha) and the runway is 2,286 metres (7,500 ft)
long. The airport has parking bays for four ATR 72/Bombardier Q400, and two for Boeing
737/Airbus A320. Construction of ten more parking bays is in progress which would
complete by June 2017.(3-5-2017) A New terminal with 500cr at 31000square meters is
under construction.

Interim terminal

Helicopter stationed on ground at Gannavaram (Vijayawada) Airport.

Plane at gannavaram airport
To cater to the increasing passenger traffic, the foundation stone for a new terminal
building was laid in October 2015. The terminal was completed in 14 months and inaugurated

79
on 12 January 2017. The structure, built at a cost of rupees 135 Crores, will act as an interim
terminal before the International terminal is built.

The interim terminal and the ceremonial lounge spread over 12, 999 square metres will
include check-in area, arrival hall, meet and greet service staircase, aviation lounge, and
baggage make up area. The lounge is spread over 3,613 square metres. The terminal can
handle up to 500 passengers at any point of time and have 18 check-in counters.

Airports Authority of India (AAI) manages a total of 125 Airports, which include 11
International Airports, 08 Customs Airports, 81 Domestic Airports and 25 Civil Enclaves at
Defense Airfields. AAI also provides Air Traffic Management Services (ATMS) over entire
Indian Air Space and adjoining oceanic areas with ground installations at all Airports and 25
other locations to ensure safety of Aircraft operations.

The Airports at Ahmadabad, Amritsar, Calicut, Guwahati, Jaipur, Trivandrum, Kolkata

& Chennai, which today are established as International Airports, are open to operations even
by Foreign International Airlines. Besides, the International flights, National Flag Carriers
operate from Coimbatore, Tiruchirappalli, Varanasi, and Gaya Airports. Not only this but also
the Tourist Charters now touch Agra, Coimbatore, Jaipur, Lucknow, Patna Airports etc.

AAI has entered into a Joint Venture at Mumbai, Delhi, Hyderabad, Bangalore and
Nagpur Airports to upgrade these Airports and emulate the world standards.
All major air-routes over Indian landmass are Radar covered (29 Radar installations at 11
locations) along with VOR/DVOR coverage (89 installations) co-located with Distance
Measuring Equipment (90 installations). 52 runways are provided with ILS installations with
Night Landing Facilities at most of these Airports and Automatic Message Switching System
at 15 Airports.

AAI's successful implementation of Automatic Dependence Surveillance System

(ADSS), using indigenous technology, at Calcutta and Chennai Air Traffic Control Centers,
gave India the distinction of being the first country to use this advanced technology in the
South East Asian region thus enabling effective Air Traffic Control over oceanic areas using
satellite mode of communication. Use of remote controlled VHF coverage, along with
satellite communication links, has given added strength to our ATMS. Linking of 80 locations
by V-Sat installations shall vastly enhance Air Traffic Management and in turn safety of
aircraft operations besides enabling administrative and operational control over our extensive
Airport network. Performance Based Navigation (PBN) procedures have already been
implemented at Mumbai, Delhi and Ahmadabad Airports and are likely to be implemented at
other Airports in phased manner.
AAI has undertaken GAGAN project in technological collaboration with Indian Space
and Research Organization (ISRO), where the satellite based system will be used for
navigation. The navigation signals thus received from the GPS will be augmented to achieve
the navigational requirement of aircrafts. First Phase of technology demonstration system has
already been successfully completed in February 2008. Development team has been geared
up to upgrade the system in operational phase.

80
 AAI has also planned to provide Ground Based Augmentation System (GBAS) at Delhi
and Mumbai Airports. This GBAS equipment will be capable of providing Category-II
(curved approach) landing signals to the aircrafts thus replacing the existing instrument
landing system in the long run, which is required at each end of the runway.

The Advanced Surface Movement Guidance and Control System (ASMGCS),

installed at Delhi, has upgraded operation to runway 28 from CAT-IIIA level to CAT-IIIB
level. CAT-IIIA system permits landing of aircrafts up to visibility of 200mtrs. However,
CAT-IIIB will permit safe landing at the Airports at a visibility below 200mtrs but above
50mtrs.

AAI's endeavour, in enhanced focus on 'customer's expectations', has evinced

enthusiastic response to independent agency, which has organised customer satisfaction
surveys at 30 busy Airports. These surveys have enabled us to undertake improvements on
aspects recommended by the Airport users. The receptacles for our 'Business Reply Letters' at
Airports have gained popularity; these responses enable us to understand the changing
aspirations of Airport users. During the first year of the millennium, AAI endeavours to make
its operations more transparent and also make available the instantaneous information to
customers by deploying state-of-art Information Technology.

The specific training, focus on improving the employee response and the professional
skill up-gradation, has been manifested. AAI's four training establishments’ viz. Civil
Aviation Training College (CATC) - Allahabad, National Institute of Aviation Management
and Research (NIAMAR) - Delhi and Fire Training Centres (FTCs) at Delhi & Kolkata are
expected to be busier than ever before.

AAI has also undertaken initiatives to upgrade training facilities at CATC Allahabad
and Hyderabad Airport. Aerodrome Visual Simulator (AVS) has been provided at CATC
recently and non-radar procedural ATC simulator equipment is being supplied to CATC
Allahabad and Hyderabad Airport.

AAI is having a dedicated Flight Inspection Unit (FIU) and it has fleet of three
aircrafts fitted with latest state-of-art fully automatic flight inspection system capable of
inspecting.

In addition to in house flight calibration of nav aids, AAI also undertakes flight
calibration of nav aids for Air force, Navy, Coast Guard and other private Airfields in India.

Vijayawada International Airport:

Is a public international airport serving Andhra Pradesh Capital Region. The
airport is located at Ganna Qvaram 13 KM from Vijayawada, where National Highway
16 connecting Chennai to Kolkatapass through. Due to an increase in air traffic from

81
the Andhra Pradesh Capital Region, the Airports Authority of India is developing and making
infrastructural changes to the airport. Its runway was extended in 2011, allowing for the
operation of bigger aircraft and a new terminal, built at a cost of Rs. 137 crore, was
inaugurated in January 2017. A New terminal with 500cr at 31000square meters is under
construction.

Union Home Ministry has issued an immigration notification for Vijayawada

airport, making way for the operation of international flights.

Currently, passengers from Vijayawada have to travel to Hyderabad or Chennai

to catch an international flight.

The airport has a domestic terminal with nearly 31 flight movements on a daily
basis. Flights are being operated to destinations such as Delhi, Chennai,
Bengaluru, Hyderabad, Tirupati and Vizag.

The team from the ministry of home affairs' (MHA) immigration department, led by
director level officer Praveen Bora Singh recently conducted an on-site inspection
of the facilities at the international terminal of Vijayawada airport and submitted a
detailed report to the department.

The old terminal building at the airport was transformed by the Airports Authority
of India (AAI) into an international terminal.

Following the notification, around 10 immigration counters, five each for arrival
and departure have been set up for the international flights.

3.1 RESEARCH METHODOLOGY

MEANING OF RESEARCH & DEFINITION

82
Research refers to a search for knowledge. Once can also define research as a scientific and
systematic search for pertinent information on a specific topic.

 Research is an art of scientific investigation.

 Systematized effort to gain new knowledge [Redman and Mary]
 It is a voyage of discovery .

METHODOLOGY

Methodology can be defined as-

 “The analysis of the principles of methods, rules, and postulates employed by a

discipline”.
 “The systematic study of methods that are, can be or have been applied within a
discipline”.
 “A particular procedure or set of procedures”.

3.1.1 NEED OF THE STUDY: Air transportation industry has climbed to an

important stage and has been one of the fastest growing industries in the regional, national
and global level. The average annual growth of air passenger and freight traffic was showing
an increase of 4.0 per cent and 5.0 per cent respectively during the last one decade. However,
the economic and political interruptions (11th September) have temporarily destabilized and
slowed down the air traffic growth. Nevertheless, recovery was seen after one year and the air
transport planners assessed that the air traffic would grow tremendously for the next two
decades by forecasting the demand, which demonstrates that the average growth would be 4-
5% for passengers and freight transport by 5.5- 6.5% globally. Among the other region, Asia
Pacific is projected to be high growth region in the world during the next 10 years (ACI,
ICAO & IATA, 2010). The growth of air transport has produced number of advantages on
econ omic and social impacts at the local and global scale. The first and foremost is
generating employment opportunities directly and indirectly and this stimulated the regional
and global economy. Air transportation helps in integrating different regions for cultural
coordination to attain social progress. Further it helps in environmental protection by prudent
use of natural resources. The economic regulation of international air transport is going
through a dynamic change as a result of increasing competition, trans- nationalization of
business, globalization of the world economy and the emergence of regional economic

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groups, privatization and liberalization of service industries. In this scenario, the increasing
air traffic demand reveals the shortage of airport infrastructure capacity as the crucial one

3.1.2 SCOPE OF THE STUDY:

In this project I have tried to present details about the training and development programs
being presently followed in AIR INDIA and the feedback, I collected from different
employees during my interaction with them.

The scope of training and development can be explained with the help of following points
-

 Exact position of performance of employees through their feedback

 Development of the employees through various training and development

programs.

 Developing altered of unbiased treatment to all employees.

3.1.3.OBJECTIVES OF THE SYUDY:

The specific objectives of the study are:

 To examine the effectiveness of training in overall development of skills of

workforce.
 To examine the impact of training on workers.
 To study the changes in behavioral pattern due to training.
 To find out new methods of training and development in AIR INDIA

I have tried to take a view on the topic in a practical manner, so that the feedback can be
provided to the organization.

3.1.4 DATA COLLECTION:

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3.1.4.1 PRIMARY DATA:

Primary data was collected through

 Questionnaires

 Personal observations

3.1.4.2 SECONDARY DATA:

Secondary data was collected through

 Newspapers

 Magazines

 Internet

3.1.5 PERIOD OF THE STUDY

The period of the study consists of 90 days in a reputed industrial organization.Data

collection: Data was collected through both primary and secondary sources. The primary data
was collected through administration of questionnaire through personal observation.
Secondary source includes article from magazines. Company's manual and Internet was also
used to collect data (secondary).

3.1.6 LIMITATION OF STUDY

During my training period although the management and plant personnel were very co-
operative & extended their full support, yet there were following limitations associates with
my study which I would like to mention:

85
Due to the busy schedule of an organization I was unable to grasp the precious words of the
HRD Manager.

CHAPTER - IV

86
 4.1 DATA ANALYSIS AND INTERPRETATION:

1. Since how many years you have been working in the company?

Sl No. No. of Years No. of Employees In Percent

a. 1-3 Years 10 40%

b. 3-5 Years 10 40% 12
EMPLOYE
c. more than 5 Years 5 20% 10

0
1-3 Years 3-5 Years

a. b.

Interpretation

About 40% of the employees says that they are from 1-3 and 40% of 3-5 and 20% for more
than 5Years in the organization.

Q2. Do you like to attend the training program?

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 Sl No. Response In Percent

a. Yes 65%

b. No 35%

35

1st Qtr
2nd Qtr

65

Interpretation
About 65% of the Employees says that it is necessary attend for the training in the
organization and 35% goes for not necessary.

Q3 Do you feel training is necessary for any employee for developing his skills?

Sl No. Response In Percent

A Yes 80%

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B No 20%

20%

80%

Interpretation

About 80% of the Employees says that training is necessary in the development of his skills
and 20% goes for not necessary

Q4. How frequently training is organized?

Sl Time Span In Percen
No.
a. Monthly 50%

b. Quarterly 30%

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 c. Half Yearly 20%

20%

30%

90%

Half Yearly
Monthly

Quarterly

Interpretation

Around 50% of the employees go for Monthly Training and 20% of Half Yearly and 30% of
says that Quarterly

Q5. Which technique is most suitable for training?

Sl No. Type of In Percent

Training
a. On the Job 50%

90
 b. Off the Job 30%

c. Both 20%

20%

30%

60%

On the Job
Off the Job

Both

Interpretation

Around 50% of the employees go for On the Job Training and 20% of Off the Job and 30% of
says that both.

Q6. Do you experience fruitful changes in working efficiency after being trained?

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 Sl Response In Percent
No.
a. Yes 80%

b. No 20%

20%

80%

Interpretation

About 80% of the Employees says that training is necessary for fruitful changes in working
efficiency after being trained and also development of his skills and 20% goes for not
necessary

Q7. Will you recommend company to take up more training programs in future?

Sl Response In Percent
No.

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 a. Yes 80%

b. No 20%

20%

80%

Interpretation

About 80% of the Employees says for future training is necessary and 20% employees says
that it is not.

5.1 FINDINGS:

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On the basis of survey through questionnaire, I hereby humbly propose my recommendation
to carry out further improvement in existing training and development activities in Marigold
Hotels.

Efforts for making training and development formats user friendly should be kept continued
 To make the training and development process an entirely in house activity to reduce
the cost.
 The maximum emphasis will be given to job instruction methods where the trainee are
made to understand their job thoroughly and the role they are going to play in
performing their job.
 Lecture as well as the presentation is the major part of imparting the Education.
 The training objective will be in keeping with needs and abilities of the trainee and it
will be the major reason for success of the training as whole...
 The trainee fill the feedback form and from time to time test are conducted to know
the gauge the effectiveness of training to employee to check their memory if they
retain anything or not.
 Stress management training is more important for employee as it was observed that
people are all the time in tension like situation as to how todo what to do when to do,
no time and things like that which kept them tensed all time.

5.2 SUGGESTIONS:

94
On the basis of survey through questionnaire, I hereby humbly propose my recommendation

to carry out further improvement in existing training and development activities in AIR

INDIA

Efforts for making training and development formats user friendly should be kept continued
 To make the training and development process an entirely in house activity to reduce
the cost.
 The maximum emphasis will be given to job instruction methods where the trainee are
made to understand their job thoroughly and the role they are going to play in
performing their job.
 Lecture as well as the presentation is the major part of imparting the Education.
 The training objective will be in keeping with needs and abilities of the trainee and it
will be the major reason for success of the training as whole...
 The trainee fill the feedback form and from time to time test are conductedto know the
gauge the effectiveness of training to employee to check their memory if they retain
anything or not.
 Stress management training is more important for employee as it was observed that

people are all the time in tension like situation as to how todo what to do when to do,

no time and things like that which kept them tensed all time.

5.3 CONCLUSION:
This study was a learning experience for me and I came to know the training and
development programs in Marigold Hotels, was positive in response but still more training
and development is needed in Marigold so that the employees are motivated time by time and

95
they should know their strength & weakness so that they can work on it & improve their
knowledge & skills for the betterment of their organization.

In the last but not the least I conclude that all the training and development programs of
company are highly effective & beneficial to the employees in giving their best contribution
to their personal growth & development as well to meet the organizational objective.

6.BIBIOGRAPHY

6.1 BOOKS:
96
HUMAN RESOURCE MANAGEMENT BY C.N.SONTAKI

6.2 MAGAZINE:
PAPER BACK MAGAZINE

6.3 WEBSITE:
WWW.IBFS.COM

7. APPENDIX

7.1. QUESTIONARE

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1.How long have you been employed in AAI
(a) Less than 10yrs (c) 15-20yrs
(b) 10-15yrs (d) More than 20yrs

2.Do you agree that training is well planned?

(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

3.Do you agree that training is of sufficient duration?

(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

4.Are training program helpful in long run?

(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

5.Was the training program helpful in personal growth?

Yes
No

6.What is your opinion about present training system?

(a) Excellent (c) Average
(b) Good (d) Below Average

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7.Do you agree that instructor responses to trainees doubts?
(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

8.Do you agree those training programs are handled by a component faculty?
(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree

9.Do you agree that training helps in performing job more enthusiastically?
(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

10.Do you agree that training has helped reducing absenteeism?

(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

11.Do you agree that training has helped in motivating employees and giving them job
security?
(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

12.Do you agree training has helped in changing the attitude of the employees?
(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

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13.What method according to you must be used to identify training needs?
(a) Interview (c) Other
(b) Group Discussion

14.Training reduces constant supervision do you agree with this statement?

(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

15.Do you agree that training helps to do the job with more commitment?
(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

16.Do you agree that training helps to understand the job clearly?
(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

17. Do you agree that training is on the basis of development needs?

(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

18. Training giving to you helps you to cope up with the constantly changing technology for
performing the job?
(a) Strongly Agree (c) Agree
(b) Neither Agree nor Disagree (d) Disagree
(e) Strongly Disagree

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19.Is there a well designed incentive training policy in the company?
(a)Yes (b) No

101