SUMMER TRAINNING PROJECT REPORT

ON

PROJECT TITLE

SUBMITTED TO:

S. S. INSTITUTE OF MANAGEMENT
SUBMITTED IN PARTIAL FULFILMENT FOR THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION BATCH 2010-2012

CORPORATE GUIDE MR. SUSHIL CHAUDHARY SR. SALES EXECUTIVE RELIANCE MONEY, LUCKNOW

SUBMITTED BY SANDHYA SINGH MBA III SEM ROLL NO. 1066270061

UNDER THE SUPERVISION OF MISS.SONIA SHARMA FACULTY, MBA SSIM, LUCKNOW

ACKNOWLEDGEMENT
First of fall I would like to thank the Management at Reliance Life Insurance co.for giving me the opportunity to do my two and a half months project training in their esteemed organization. I am highly obliged to Mr. SUSHIL (sales manager) for granting me to undertake my training at branch LUCKNOW I express my thanks to all Sales Managers under whose able guidance and direction, I was able to give shape to my training. Their constant review and excellent suggestions throughout the project are highly commendable. My heartfelt thanks go to all the executives who helped me gain knowledge about the actual working and the processes involved in various departments. I would also like to thank my internal guide

Miss. Sonia sharma who gave me a correct idea to frame my report.

SANDHYA SINGH MBA III SEM

PREFACE

The liberalization of the Indian insurance sector has been the subject of much heated debate for some years. The policy makers where in the catch 22 situation wherein for one they wanted competition, development and growth of this insurance sector which is extremely essential for channeling the investments in to the infrastructure sector. At the other end the policy makers had the fears that the insurance premia, which are substantial, would seep out of the country; and wanted to have a cautious approach of opening for foreign participation in the sector. As one of the rare occurrences the entire debate was put on the back burner and the IRDA saw the day of the light thanks to the maturing polity emerging consensus among factions of different political parties. Though some changes and some restrictive clauses as regards to the foreign participation were included the IRDA has opened the doors for the private entry into insurance. Whether the insurer is old or new, private or public, expanding the market will present multitude of challenges and opportunities. But the key issues, possible trends, opportunities and challenges that insurance sector will have still remains under the realms of the possibilities and speculation. What is the likely impact of opening up Indias insurance sector? The large scale of operations, public sector bureaucracies and cumbersome procedures hampers nationalized insurers. Therefore, potential private entrants expect to score in the areas of customer service, speed and flexibility. They point out that their entry will mean better products and choice for the consumer. The critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently. This seems to be a logical strategy. Start-up costs-such as those of setting up a conventional distribution network-are large and high-end niches offer better returns. However, the middle-market segment too has great potential. Since insurance is a volumes game. Therefore, private insurers would be best served by a middle-market approach, targeting customer segments that are currently untapped.

Table of contents:

ACKNOWLEDGEMENT PREFACE EXECUTIVE SUMMARY

SECTION A INDUSTRY AND COMPANY PROFILE

INDUSTRY BACKGROUND COMPANY BACKGROUND ORGANAZATION CHART

SECTION B
WHY THIS PROJECT WAS UNDERTAKEN (RELEVANCE OF THE TOPIC) PROBLEM ENVIRONMENT

SECTION C

THE PROJECTRESEARCH METHODOLOGY OBJECTIVE RESEARCH DESIGN FIELD WORK-METHOD USED FOR DATA COLLECTION LIMITATIONS

SECTION D

ANALYSIS SAMPLE PROFILE PRIMARY DATA TEBLUATION INTERPRETATION & FINIDINGS SUGGESTIONS & CONCLUSIONS BIBLIOGRAPHY ANNEXURE

EXECUTIVE SUMMARY

TRANING AND DEVELOPMENT PROCESS IN RELIANCE LIFE INSURANCE

Introduction
Training and Development:

Employee training is distinct from management development. Training is a short term process utilizing a systematic and organized procedure by which non managerial personal learn technical knowledge and skills for a definite purpose. It refers to instructions in technical and mechanical operations like operation of a machine. It is designed primarily for non managers. It is for a short duration and for a specific job related purpose.

On the other hand, development is a long term educational process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose. It involves philosophical and theoretical educational concepts and it is designed for managers. It involves broader education and its purpose is long term development. In the words of Campbell, training courses are typically designed for a short term stated set purpose, such as the operation of some piece(s) of machinery while development involves a broader education for long term purposes. Training involves helping an individual learn how to perform his present job satisfactorily. Development involves preparing the individual for a future job and growth of the individual in all respects. Development complements training because human resources can exert their full potential only when the learning process goes far beyond simple routine.

Need for Training:

Training is required on account of the following reasons:

1. Job Requirements: Employees selected for a job might lack the qualifications required to perform the job effectively. New and inexperienced employees require detailed instruction for effective performance on the job. In some cases, the past experience, attitudes and behavior patterns of experienced personnel might be inappropriate to the new organization. Remedial training should be given to such people to match the needs of the organization. New employees need to provide orientation training to make them familiar with the job and the organization.

Technological changes:

Technology is changing very fast. Now automation and

mechanization have are being increasingly applied in offices and service sector. Increasing use of fast changing techniques requires training into new technology. for instance, staff in public sector bank are being trained due to computerization of banking operations. No organization can take advantage of latest technology without well-trained personnel. New jobs require new skills. Thus, both new and old employees require training.

Organizational Viability: In order to survive and grow an organization must

continually adopt

itself to the changing environment. With increasing economic liberalization and globalization in India, business firms are experiencing expansion, growth and diversification. In order to face international competition, the firms must upgrade their capabilities. Existing employees need refresher training to keep them abreast of new knowledge. Training programmes foster the initiative and creativity of employees and help to prevent obsolescence of skills. An organization can build up a second line of

command through training in order to meet its future needs for human resources. Trained staff is the most valuable asset of a company. Internal mobility: Training becomes necessary when an employee moves from one job to another due to promotion and transfer. Employees chosen for higher-level jobs need to be trained before they are asked to perform the higher responsibilities. Training is widely used to prepare employees for higher level jobs. Thus, there is an ever present need for training people so that new and changed techniques may be taken advantage and improvements in old methods are effected. Need for training has increased due to growing complexity of jobs, increasing professionalization of management, growing aspirations, vast untapped human potential, ever increasing gap between plans and results and suboptimal performance levels.

Importance of Training:

A well planned and well executed training programme can provide the following advantages:

1.

Higher Productivity: Training helps to improve the level of performance. Trained employees perform better by using better method of work. Improvements in manpower productivity in developed nations can be attributed in no small measure to their educational and industrial training programmes.

2.

Better quality of work: In formal training, the best methods are standardized and taught to employees. Uniformity of work methods and procedures helps to improve the quality of product or service. Trained employees are less likely to make operational mistakes.

3.

Less Learning Period: A systematic training programme helps to reduce the time and cost involved in learning. Employees can more quickly reach the acceptable level of performance. They need not waste their time and efforts in learning through trial and error.

4. Cost Reduction: Trained employees make more economical use of materials and machinery. Reduction in wastage and spoilage together with increase in productivity help to minimize cost of operations per unit. Maintenance cost in also reduced due to fewer machine breakdown and better handling of equipments. Plant capacity can be put to the optimum use.

RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation.

Significance and scope of the study

1. The study will be of great use to the bank employees as they will get to know the true impact of training programmes. 2. The study will be beneficial for the students as well in understanding the concept of training & development and also its implications. 3. Training helps to improve the level of performance. Trained employees perform better by using better method of work . 4. Proper training can develop positive attitudes among employees. Job satisfaction and morale are improved due to a rise in the earnings and job security of employees.

5. Training enlarges the knowledge and skills of the participants. Therefore, well trained personnel can grow faster in their career.

FINDINGS & SUGGESTION

Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people learn knowledge and skill for a definite purpose. The purpose of training is basically to bridge the gap between job requirements and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending or continuous process. Training is closely related with education and development but needs to be differentiated from these terms.

The overall aim of a training programme is to fill in the gap between the existing and the desired pool of knowledge, skills and aptitudes .Objectives of training express the gap between the present and the desired performance levels. Definition of training objectives in both quantitative and quantitative terms will help to evaluate and monitor the effectiveness of training. Involvement of top management is necessary to integrate the training objectives with the organizational objectives

employees and are even responsible for increasing overall efficiency level of employees, reduced monotony, stress & absenteeism and are responsible for development & growth of banking sector employees. FROM THE SECONDARY DATA From the study it has been found that 30% respondents believe that training programmes improve managerial skills, while 35% believe it is responsible for improving technical skills. Further it is found that training programmes improve interpersonal relationship. About 80% respondents are of the same view. 75% respondents believe that training programmes are always beneficial for employees 25% respondents strongly emphasis this point. Moreover, training programmes increase the self worth of

SECTION -A

INDUSTRY AND COMPANY PROFILE

INDUSTRY BACKGROUND INSURANCE IN INDIA The insurance sector in India has come a full circle from being an open competitive market to nationalisation and back to a liberalised market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. A brief history of the Insurance sector The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957:

General

Insurance

Council,

wing

of

the

Insurance

Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

Insurance sector reforms In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of

complementing the reforms initiated in the financial sector.

The

reforms

were

aimed

at

creating

more

efficient

and

competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms In 1994, the committee submitted the report and some of the key recommendations included:

i) Structure Government stake in the insurance Companies to be brought down to 50% Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations All the insurance companies should be given greater freedom to operate ii) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No Company should deal in both Life and General Insurance through a single entity Foreign companies may be allowed to enter the industry in collaboration with the domestic companies

 Postal Life Insurance should be allowed to operate in the rural market Only one State Level Life Insurance Company should be allowed to operate in each state

iii) Regulatory Body The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be made independent iv) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time)

v) Customer Service LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans.

Computerization of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body. The Insurance Regulatory and Development Authority Reforms in the Insurance sector were initiated with the passage of the IRDA ill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance

companies was the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered. Life insurance made its debut in India well over 100 years ago. Its salient features are not as widely understood in our country as they ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC. It should, however, be clearly understood that the following narration is by no means an exhaustive description of the terms and conditions of a LIC policy or its benefits or privileges. For more details, please contact our Branch or Divisional Office. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing. What is Life Insurance ?

Life Insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. Usually the contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the assured. Life insurance is universally acknowledged to be an institution which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: that of dying prematurely leaving a dependent family to fend for itself and that of living to old age without visible means of support. Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent

of the total 400 million of the insurable population.The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension

products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the avaerage size of a life insurance policy before privatisation was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average.

Why is it superior to other forms of Savings ? Protection: Savings through life insurance guarantee full protection against risk of death of the saver. In life insurance, on death, the full sum assured is payable (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable. Aid to thrift: Life insurance encourages 'thrift'. Long term saving can be made in a relatively 'painless' manner because of the 'easy instalment' facility built into the scheme (method of paying premium either monthly, quarterly, half yearly or yearly). Take, for example, our Salary Saving Scheme popularly known as SSS. This scheme provides a convenient method of paying premium each month by deduction from one's salary. The deducted premium is remitted by the employer to the LIC. The Salary Saving Scheme can be introduced in an institution or establishment subject to specified terms and conditions. Liquidity: Loans can be raised on the sole security of a policy which has acquired loan value. Besides, a life insurance policy is also generally accepted as security for even a commercial loan.

Tax Relief: Tax relief in Income Tax and Wealth Tax is available for amounts paid by way of premium for life insurance subject to Income Tax rates in force. Assessees can avail themselves of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for his insurance than he would have to pay otherwise. Money when you need it: A suitable insurance plan or a combination of different plans can be taken out to meet specific needs that are likely to arise in future, such as children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time. Alternatively, policy moneys can be so arranged to be made available at the time of one's retirement from service to be used for any specific purpose, such as for the purchase of a house or for other investments. Subject to certain conditions, loans are granted to policyholders for house building or for purchase of flats. Who can buy a Life Insurance Policy ? Any person who has attained majority and is eligible to enter into a valid contract can take out a life insurance policy for himself and on those in whom he has insurable

interest.

Policies on

can

also of

be

taken

out,

subject or

to

certain While

conditions,

the

life

one's

spouse

children.

underwriting proposals, factors such as the state of health of the life to be assured, the proponent's income and other relevant factors are considered by the Corporation.

Insurance on Women . Prior to nationalization (1956), many of the private insurance companies used to offer insurance to female lives with some extra premium or on restrictive conditions. After nationalization of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time to time. At present, women with earned income are treated on par with male lives. In other cases, a restrictive clause is imposed and that too only if age of the female is up to 30 years and if she does not have an income attracting Income Tax. Medical and Non-Medical Schemes . Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also as a measure of relaxation, LIC has been extending insurance cover without any medical examination, subject to certain conditions.

COMPANY BACKGROUND
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Anil Ambani's Reliance Life Insurance Company Limited, a subsidiary of Reliance Capital Limited, has concluded a much awaited deal in the life insurance sector. Even before selling a single life insurance policy, Reliance Life, a part of the Anil Dhirubhai Ambani Enterprises, has snapped the Chennai-based private life insurer AMP Sanmar Life Insurance Company Limited. AMP Sanmar is a 26:74 joint venture between AMP, Australia and Sanmar group. Interestingly, only recently, the Reliance Life had approached the Insurance Regulatory and Development Authority (IRDA) to revive its business licence that had been cancelled by the regulator for non commencement of business. Though the three parties to the deal Reliance Capital, AMP and

are keeping the deal size secret, figures ranging between Rs225-400

crore are being talked about as being the final price. What is clear is that Reliance Life has clearly outbid other suitors like Aviva, ICICI Prudential Life Insurance Company, etc. This acquisition makes Reliance Life the first private sector life insurer to start business without a foreign partner The Insurance Regulatory and Development Authority (IRDA) has approved the change in the name of AMP Sanmar Life Insurance Company Limited to Reliance Life Insurance Company Limited. The change was necessitated after the acquisition of the holdings of AMP Australia and the Sanmar group in AMP Sanmar by Reliance Capital for Anil Ambani's proposed life insurance venture, now called Reliance Life Insurance (See: Anil Ambani snaps up AMP Sanmar) for an undisclosed sum. Subsequently, a fresh certificate of incorporation was issued by the Registrar of Companies, Tamil Nadu, changing the name of the company on January17, 2006. Accepting the change in the name of the company in its registers, the

IRDAhas permitted Reliance Life to carry on life insurance business subject to the condition that the company should honour the commitments to the

policyholders of the AMP Sanmar without altering any of the terms and conditions of the original policy. After the acquisition of the stake of the two promoter companies, Reliance Capital has been busy chalking aggressive growth plans for the life insurance company. It plans to have one million policyholders by this year end. The company under the new ownership has been selling policies at a faster pace than ever before. For the nine month ended 31st December 2005, AMP Sanmar / Reliance Life has a fresh premium income of Rs114.48 crore, selling 41,488 policies with the average premium per policy of Rs27,593.

http://www.domain-

b.com/scripts/recommend/recommend.aspAs

AMP Sanmar, the company

had earned fresh premium of Rs61.04 crore from the 23,328 policies it sold

during April-December 2004 at an average premium per policy of Rs26,166. Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services.Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. Which was started with the mission and visionReliance insurance vision To be recognized as a professional and dependable business entity committed to play a meaningful role in the development of insurance industry in Pakistan and to safeguard the legitimate interests of all stakeholders, namely policy-holders, share-holders, reinsurers, employees and all other business associates/partners Reliance insurance mission

To provide quality service and protection to its clients aiming at achieving a respectable volume of business and become a prominent player through good governance and sound professionalism focusing to become a wellknown and respected Corporate entity in the eyes of Society and Government.

ORGANAZATION CHART
AREA BUSSINESS HEAD

BRANCH DEVELOPMENT MANAGER

SALES MANAGER

SALES MANAGER

SALES MANAGER

25-30 ADVISOR UNDER EACH SALES MANAGER

SECTION -B

Training and development

Todays investment environment is complex, dynamic, and challenging. Its not superior infrastructure or technology or the deposits which keep it ahead of competition, but its ability to manage investments markets. The banks ability to manage its investments requires knowledge of investment markets and instruments, as well as an understanding of the regulatory, accounting, financial and economic forces that affect investment performance and how they all interrelate to each other. Having understood this to be a prerequisite the greatest resource of any organization is the potential of its people. It is the basket of competencies that its employees possess, which differentiates one organization from the other, in fact a successful one from all the rest in the race. Employees who are motivated not simply instructed are a banks true assets.

But the fact is that employees do not come ready made, fitting to the organizational requirements. They have to be shaped and developed and tailored in terms of their skills, attitudes and behaviors in order to say compatible with the organizations culture and goals, thus, contributing to its productivity and profitability .Precisely speaking they have to be trained . Beginning from the policy of the organization the basic rules of the job to key concepts to team performance to catering to the rising customers demands training is a necessary tool without which viability if not success is impossible in this era of cutthroat competition .

Though this fact is universally know the conventional wisdom says that strangely there is very little organization that attaches the commensurate level of importance to training in their concerns. The interesting fact is that a majority of them belong to the public sector. It is a known fact that despite the hug amounts of state spending on staff college and universities for training employees in the banks the most frequent names which figure out in the top 10 belong to the private sector this continues necessitating emergence of many question in the mind as to how training is being done how much is the tentative spending on each employees for training programs what is the general

perception of employees towards training how is ROI calculated if it is being done at all a common perception exists that though a lot of investment made is not being made on training the return on the investment made is being made on training the return on the investment made is not being taken care of Also the employees see training more or less to be a paid holiday rather than a tool for improving the overall organizational effectiveness and making them selves indispensable .

The study is conducted to gain considerable insights into the effectiveness of training and development on banking sector.

Private sector enterprises play a very crucial role in developing the industrial base of an economy. Training and development was deemed necessary in view of lack of trained manpower (pant 2000) .After the implementation of new economy policy in 1991, private sector enterprises need to improve overall organizational effectiveness and productivity, and also need to ensure competitive edge .These changes necessitate the training and development of personnel in the private sector enterprises.

Today organization is passing through massive changes due to advancement in science and technology and due to competition from global players .India has nearly one sixth of the world population. This overabundant human resource needs to be converted into asset which is only possible through proper training and development. our former prime minister , Rajeev Gandhi rightly sensed this need had established a separate ministry for human resource development in1985 .he stressed on the development of human resources and because of his initiatives , training occupied a front seat in the national economy . Later on , most of the business organization realized the need and importance of training their employees for better and improved results. The human resource development approach is essential in order to have optimum utilization of manpower for the benefit of both, the employees and the organization.

After the opening up of economy, talent is moving from one organization to another search of high paying jobs in private and multinational companies, which leads to scarcity of trained manpower. This again emphasizes the need and importance of training and employee retention.

A major study was conducted taking 575US-based publicly traded firms during1996,1997 and 1998.the American society for training and development (ASTD) found that companies which invested $680 more in training per employee than the average company had an increase of 6% in their total stakeholder return in the following year (even after considering other factors). ASTD researchers also found a similar pattern while comparing gross profit margin, income per employee, and price to book ratios for firms in the top quarter of the study group who invested on average $1,595 per employee in training with firms who invested average $128 per employee. It was found that the former experienced 24% higher gross profit margins, 218% higher income per employee, and 26% higher price to book ratios (ASTD, 2000)

This paper will review and analyze the training and development policies and practices of a few private sector enterprises. The outline framework for any training and development activity should be linked with the organizations vision and mission so as to make it more effective. The framework should comprise: Training to be treated as one of the tools for increasing organizational effectiveness. Creating environment for self-motivation towards training and development. Learning through training should be transferred to the job/work.

Today, private sector enterprises in India are passing through a phase of metamorphosis. On one hand they are facing tough product market competition with the advent of global players and on the other; there are threats of closures due to inefficient operation. in this scenario , organizations are under pressure to improve organizational effectiveness by finding ways to become cost-conscious

and resource-efficient (joshi,2000).most of todays business are still using labor intensive technology and large scale as well as long term cost reductions can be achieved by improving the productivity of employees through effective training and development.

Also, high pay packages offered by the global players are attracting high-quality fresh talent as well as high performers. This poses challenge for the organizations to improve , develop and retain the available resource in order to have a competitive edge .these conditions further strengthen the need of training and development to facilitate and ensure the acquisition of competencies required by the employees to perform their task more effectively in order to accomplish overall organizational effectiveness.

Participants perceptions about training program are very important because they directly affect the acceptance and later implementation of the learning from these programs.

Success of any training program largely depends upon various factors like content method instructor work environment external support and above all employees. Motivation to learn and then transfer it to job can be considered as one of the major components of training., it generally reflected in the employees attitude towards participation in training .motivation and successful implementation of training to practice are interdependent. Motivation creates a better learning environment that leads to better training and later successful implementation of learning from programs and successful practice of the learning from training programs is a great motivator to generate interest among the employees (Craig & bittel 1969)

According to Clark, Dobbins and Ladd (1993) career utility is the perceived utility of training in achieving career goals .Career goals can be promotion or increment in salary improvement in personal skills and better job prospects. Noes (1986) model of training effectiveness proposed that

rewards resulting from successful completion of training influence an individuals motivation to undergo training and to learn from it.

It is quite common in organization that the training activities are largely measured by number of training programs conducted per year or number of training programs per employee per annum to highlight fancy figures .This does not really reflect the quality of the training programs .It only highlights the quantity which does not lead to organizational effectiveness Training is not to be seen independently rather it need to be linked with practical application of learning .And training ultimately needs to fulfill not individual or job objective , but as well as the organizational objectives

Training transfer climate (support for learning to the job) is also equally important for transferring learning to job. Noes (1986) model proposed that environmental favorability affects transfer of newly learned skills or knowledge to the job. Environment favorability comprises task constraints (e.g., lack of resource), the perceived social support for training i.e., support provided (with opportunities and reinforcement for practicing newly learned skills or knowledge acquired in

training) by other employees (either by top management, immediate boss, peers or subordinates).

It is also necessary to evaluate training programs periodically. Current research scenario concerning evaluation of training through sophisticated research design is not very encouraging in Indian context. The evaluation of job behavior is generally sidelined. This is needed to bridge the gap between training and work practices.

Concept of Training

Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people learn knowledge and skill for a definite purpose. The purpose of training is basically to bridge the gap between job requirements and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending or continuous process. Training is closely related with education and development but needs to be differentiated from these terms.

Training and Education:

Training should be distinguished from education Training is any process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased. On the other hand, education is the process of increasing the general knowledge and understanding of employees. Thus education is wider in scope and more general in purpose than training .Training is job-oriented or occupational having an immediate utilitarian objective and the major burden of training falls upon the employers. Training is vocational whereas education is general and major burden of education falls on the Government. Education is person oriented while training is job oriented. Training is essentially practical consisting of knowledge and skills required to perform specific tasks. On the contrary, education is theoretical consisting of concepts aimed at stimulating analytical and creative faculties of the individual.

Training and Development:

Employee training is distinct from management development. Training is a short term process utilizing a systematic and organized procedure by which non managerial personal learn technical knowledge and skills for a definite purpose. It refers to instructions in technical and mechanical operations like operation of a machine. It is designed primarily for non managers. It is for a short duration and for a specific job related purpose.

On the other hand, development is a long term educational process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose. It involves philosophical and theoretical educational concepts and it is designed for managers. It involves broader education and its purpose is long term development. In the words of Campbell, training courses are typically designed for a short term stated set purpose, such as the operation of some piece(s) of machinery while development involves a broader education for long term purposes. Training involves helping an individual learn how to perform his present job satisfactorily. Development involves preparing the individual for a future job and growth of the individual in all respects. Development complements training because human resources can exert their full potential only when the learning process goes far beyond simple routine.

Need for Training:

Training is required on account of the following reasons:

2. Job Requirements: Employees selected for a job might lack the qualifications required to perform the job effectively. New and inexperienced employees require detailed instruction for effective performance on the job. In some cases, the past experience, attitudes and behavior patterns of experienced personnel might be inappropriate to the new organization. Remedial training should be given to such people to match the needs of the organization. New employees need to provide orientation training to make them familiar with the job and the organization.

Technological changes:

Technology is changing very fast. Now automation and

mechanization have are being increasingly applied in offices and service sector. Increasing use of fast changing techniques requires training into new technology. for instance, staff in public sector bank are being trained due to computerization of banking operations. No organization can take advantage of latest technology without well-trained personnel. New jobs require new skills. Thus, both new and old employees require training.

Organizational Viability: In order to survive and grow an organization must

continually adopt

itself to the changing environment. With increasing economic liberalization and globalization in India, business firms are experiencing expansion, growth and diversification. In order to face international competition, the firms must upgrade their capabilities. Existing employees need refresher training to keep them abreast of new knowledge. Training programmes foster the initiative and creativity of

employees and help to prevent obsolescence of skills. An organization can build up a second line of command through training in order to meet its future needs for human resources. Trained staff is the most valuable asset of a company. Internal mobility: Training becomes necessary when an employee moves from one job to another due to promotion and transfer. Employees chosen for higher-level jobs need to be trained before they are asked to perform the higher responsibilities. Training is widely used to prepare employees for higher level jobs. Thus, there is an ever present need for training people so that new and changed techniques may be taken advantage and improvements in old methods are effected. Need for training has increased due to growing complexity of jobs, increasing professionalization of management, growing aspirations, vast untapped human potential, ever increasing gap between plans and results and suboptimal performance levels.

Importance of Training:

A well planned and well executed training programme can provide the following advantages:

1.

Higher Productivity: Training helps to improve the level of performance. Trained employees perform better by using better method of work. Improvements in manpower productivity in developed nations can be attributed in no small measure to their educational and industrial training programmes.

5.

Better quality of work: In formal training, the best methods are standardized and taught to employees. Uniformity of work methods and procedures helps to improve the quality of product or service. Trained employees are less likely to make operational mistakes.

6.

Less Learning Period: A systematic training programme helps to reduce the time and cost involved in learning. Employees can more quickly reach the acceptable level of performance. They need not waste their time and efforts in learning through trial and error.

4.

Cost Reduction: Trained employees make more economical use of materials and machinery. Reduction in wastage and spoilage together with increase in productivity help to minimize cost of operations per unit. Maintenance cost in also reduced due to fewer machine breakdown and better handling of equipments. Plant capacity can be put to the optimum use.

3.

Reduced Supervision: Well-trained employees tend to be self-reliant and motivated. They need less guidance and control. Therefore, supervisory burden is reduced and the span of supervision can be enlarged.

4.

Low Accident Rate: Trained personnel adopt the right work methods and make use of the prescribed safety devices. Therefore, the frequency of accidents is reduced. Health and safety of employees can be improved.

5.

High morale: Proper training can develop positive attitudes among employees. Job satisfaction and morale are improved due to a rise in the earnings and job security of employees. Training reduces employee grievances because opportunities for internal promotion are available to well trained personnel.

6.

Personal Growth: Training enlarges the knowledge and skills of the participants. Therefore, well trained personnel can grow faster in their career. Training prevents obsolescence of knowledge and skills. Trained employees are a more valuable asset to any organization. Training helps to develop people for promotion to higher posts and to develop future managers.

7.

Organizational Climate: A sound training programme helps to improve the climate of an organization. Industrial relations and discipline are improved. Therefore, decentralization of authority and participative management can be introduced. Resistance to change is reduced. Organizations having regular training programmes can fulfill their future needs for personnel from internal sources. Organizational stability is enhanced because training helps to reduce employee turnover and absenteeism. training is an investment in people and, therefore, systematic training is a sound business investment. In fact, no organization can choose whether or not to train employees ..the only choice left to management is whether training shall be haphazard, causal and possibly misdirected or whether it shall be made a carefully planned part of an integrated programme of personnel administration.

Benefits of Training to Employees:

Training is useful to employees in the following ways:

1.

Self confidence: Training helps to improve the self confidence of and employee. It enables him to approach and perform his job with enthusiasm.

2.

Higher Earnings: Trained employees can perform better and thereby earn more.

Safety: Training helps an employee to use various safety devices.

4. 5.

Adaptability: Training enables an employee to adapt to changes in work procedures and methods. Promotion: Training employees can develop him and earn quick promotions.

6.

New Skills: Training develops new knowledge and skills among employees .The new skills are a valuable asset of an employee and remain permanently with him.

TYPE OF TRAINING:
Training is required for several purposes. Accordingly training programmes may be of the following types:

1. Orientation training: Introduction 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 known as pre job training. It is brief and informative.

2. Job Training: It refers to the training provided with a view to increase the knowledge and skills of an employee for improving performance on the job.

3. 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.

Promotional Training: It involves training of existing employees to enable them to

perform

higher level jobs. Employees with potential are selected and they are given 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.

4. Refresher Training: When exiting techniques become obsolete due to the development of better techniques, employees have to be trained in the use of new methods and new techniques. With the passage of time employees 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 exiting 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.

6 Remedial training: Such training is arranged to overcome the shortcomings in the

behavior and

performance of old employees. Some of the experienced employees might have picked up appropriate methods and styles of working. Such employees are identified and correct work methods and procedures are taught to them. Remedial training should be conducted by psychological experts.

IDENTIFYING TRAINING NEEDS

SETTING TRAINING OBJECTIVES AND POLICY

Designing Training programme

Conducting the training

Follow UP and evaluation

Systematic approach to training

Identifying Training Needs

All training activities must be related to the specific needs of the organization and the individual employees. A training programme should be launched only after the training needs are assessed clearly and specifically. The effectiveness of a training programme can be judged only with the help of training needs identified in advance. In order to identify training needs, the gap between the

exiting and required levels of knowledge, skills, performance and aptitudes should be specified. The problem are as that can be resolved through training should also be identified.

Training needs can be identified through the following types of analysis.

1. Organizational Analysis: It involves a study of the entire organization in terms of its objectives its resources resource allocation and utilization growth potential and its environment. Its purpose is to determine where training emphasis should be placed with in the organization. Organizational analysis consists of the following elements.

a) Analysis of objective: The long term and short term objectives and their relative priorities are analyzed. Specific goals and strategies for various departments and sections should be stated as a means for achieving the overall organizational objectives. General objectives need to be translated into specific and detailed operational target . It is also necessary to continuously review and revise the objectives in the light changing environment.

b) Resource Utilization Analysis: The allocation of human and physical resources and their efficient utilization in meeting the operational targets are analyzed. In order to examine in detail the inputs and outputs of the organization, efficiency indices may be developed. These indices will help to determine the adequacy of specific work flows as well as the contribution of human resources.

c) Organization image Analysis: The prevailing climate of an organization reflects the member attitudes. It also represents managements attitude towards employee development. Without Adequate management support and appropriate supervisory styles a training programme cannot be successful Analysis of organization climate can reveal the strengths and weakness also. d) Environmental Scanning: The economic, political, technological and socio-cultural environment of the organization can influence and the constraints which it cannot control.

2.

Task or Role Analysis .It is a systematic and detailed analysis of jobs to identify job contents the knowledge skill and aptitudes required and the work behavior. On the part of the job holder particular attention should be paid to the tasks to be performed, the methods to be used, the way employees have learnt these methods and the performance standards required of employees .Also called operations analysis, its purpose is to decide what should be taught. Questionnaire, interview, personal records, reports, tests, observation and other methods can be used to collect information about jobs in the organization.

3.

Manpower Analysis: In this analysis the persons to be trained and the changes required in the knowledge, skills and aptitude of an employee are determined. First of all , it is necessary to decide whether performance of an individual is substandard and training is needed Secondly it is determined whether the employee is capable of being trained Thirdly , the specific areas in which the individual requires training are determined . Other alternatives to training e.g. should also be considered .Personal observation, supervisory evaluation, work samples, diagnostic tests and performance reports provide the information needed to choose from these alternatives .Training can be relevant and viable if the three types of analysis given above are carried on continuously .Moreover, this analysis should be integrated in a carefully designed and exacted programme.

Training Objectives:
Once the training needs are identified, the next step is to set training objectives in concrete terms and do decide the strategies to be the adopted to achieves these objectives. The overall aim of a training programme is to fill in the gap between the existing and the desired pool of knowledge, skills and

aptitudes .Objectives of training express the gap between the present and the desired performance levels. Definition of training objectives in both quantitative and quantitative terms will help to evaluate and monitor the effectiveness of training. Involvement of top management is necessary to integrate the training objectives with the organizational objectives

The main objectives of a training may be defined as follows:

(a)

To impart to new entrants the basic knowledge and skills required for efficient performance of definite tasks.

(b)

To assist the employees them to the latest concepts , information and techniques and developing the skills they would require in their particular fields

(c)

To build up a second line of competent officers and prepare them to occupy more responsible position

(d)

To broaden the minds of senior managers through interchanges of experience within the outside so as to correct the narrow outlook caused due to over specializations.

The above objective may be classified in terms of learning levels e.g. motor skills, adaptation level, interpersonal understanding and values. These may alternatively be classified into status quo objectives, corrective objective, problems solving objectives and innovative objectives.

According to Herris,training of any kind should have as its objective the redirection or improvement of behavior so that the performance of the trainee becomes more useful and productive for himself

and for the organization of which he a part In other words training objectives should be stated in terms of changes required in behavior and performance. While setting training objectives, the following criteria may be used:

(1) Nature and size of the group to be trained.

(2) Roles and takes to be coined out by the target group

(3) Relevance applicability and compatibility of training to the work situation

(4) Identification of the behavior where change is required

(5) Existing and desired behavior defined in term ratio, frequency, quality of interaction, repetitiveness, innovations, supervision, etc.

(6) Operational results to be achieved through training e.g., productivity, cost, downtime, creativity, turnover etc.

(7) Indicators to be used in determining changes from exiting to the desired level in terms of ratio and frequency.

Designing a Training Programme:

In order to achieve the training objectives, an appropriate training policy is necessary. A training policy represents the commitment of top management to employee training. It consists to rules and procedures concerning training a training policy are required

(a) To indicate the companys intention to develop its employees (b) To guide the design and implementation of training program (c) To identification the critical are where training is to be given on a priority basis: and (d) To provide appropriate opportunities to employees for their own betterment.

A sound training policy clearly defines the following issues:

(1) (2) (3) (4) (5) (6) (7) (8)

The results expected to be achieved through training The responsibility for the training function The priorities for training The type of training required The time and place of training The payment to be made to employees during period The outside agencies to be associated with the training Relationship of training to the companys labor policy. Once training objectives and policy are decided, an appropriate training programme can be designed and conducted. Decisions on the following items are required for this purpose.

(1)

Responsibility for Training: Training is quite a strenuous task which cannot be undertaken
by one single department. The responsibility for training has to be shared among:

a)

The top management, who should frame and authorize the basic training policy, review and approve the training plans and programmers, and approve training budgets

b) c) d)

The personnel department which should plan establish and evaluate instructional programmes The line supervisor, who should implement and apply the various developmental plans. The employees who should be properly organized. But good organization alone is not adequate, proper planning and training is equally impotent .

(2)

Selecting and Motivating the Target Group : It is necessary to decide who is to trained
new or old employees ; unskilled or semiskilled workers , supervisor or executives . The type and methods to be used will depend upon the type of persons to be trained .It is also necessary to create a desire for learning. The employee will be interested in training if they believe that it will benefit them personally .Trainees will change their behavior if they become aware of better ways of performing and gain experience in the new pattern of behavior so that it becomes their normal manner of operation . a climate conducive to leaving can also be created through physical and psychological environment . Physically an appropriate location, adequate space , proper lighting and ventilation , adequate furniture and audio visual aids are necessary . Psychological environment consists of involvement and participation freedom of social interaction, open communication, friendly and helpful trainers, provision for measuring learner s progress ,etc.

(3)

Preparing the Trainers: The success of a training programme depends to a great extant upon the
instructors or the resource persons. The trainer must know both the job to be taught and how to teach it. He should have an aptitude for teaching and should employ the right training techniques .and should employ the right training techniques.

(4)

Developing Training Package. The step involves deciding the content of training designing
support material for training and choosing the appropriate training methods. Training course may involve specific instruction in the procedures of doing job . A training courses may cover time period ranging from one week to facilitate choice . Such a training package should also contain a detailed syllabus with proper sequencing of contents may include study notes case studies pamphlets chart brochures manual movie slides etc.

(5)

Presentation : This is the action phase of training .Here the trainer tells demonstrates and
illustrates in order to put over the new knowledge and operation . How ever, before ,it the learner should be put at ease . It is necessary to explain why he is being taught to develop his interest in training. The learner should be told of sequence of the entire job, the need of each step in job, the relationship of the job to the total work flow etc. Instructions should be clear and complete. Key points should be stressed upon and one point should be explained at a time audio visual aids should be encouraged to ask question in order to insure that he really know and understands the job.

TRAINING METHODS AND TECHNIQUES: The methods employed for training of

operatives may be described as under:

(1)

On the Training (OJT) :In this method the trainee is placed on a regular job and taught the skills necessary to perform it . The trainee learns Under the guidance and supervision the superior or an instructor. the trainee learns by observing and handling the job . Therefore, it is called learning by doing. Several methods are used to provide on the job training e.g. , coaching, job, rotation committee assignments, etc. .A popular form of on the job training is job instruction training (JIT)or step by step learning . It is widely used in the united states to prepare supervisors . it is appropriate for acquisition or improvement of motor skills and repetitive operations. The jit involves the following steps:

(a)

Preparing the trainee for instruction. This involves putting the trainee at ease , securing his interest and attention , stressing the importance of the jobs ; etc.

(b)

Presenting the jobs operations or instructions in terms of what the trainee is required to do. The trainee is put at work site and each step of the job is explained to him clearly.

(c)

Applying and trying out the instruction to judge how far the trainee has understood the instructions.

(d)

Following up the training to identify and correct the deficiencies, if any. JIT method provides immediate feedback, permit quick correction of errors and provides extra practice when required .But it needs skilled trainers and preparation in advance. Merits: a) The main advantage of OJT is that the trainee learns on the actual machine in use and in the real environment of the job. He gets a feel of the actual job. Therefore, he is better motivated to learn and there is no problem of transfer of training skills to the job. b) This method is very economical because no additional space, equipment, personnel or other facilities are required for training. The trainee produces while he learns.

c) The trainee learns the rules regulation s and procedures by observing their day to day applications.

d) This is the most suitable method for teaching knowledge and skills which can be acquired through personal observation in a relatively short time period. It is widely used for unskilled and semi-skilled jobs e.g., machinist, clerical and sales jobs.

e) Line supervisors take an active part in training their subordinates.

Demerits: a) In on the jobs training, the learner finds it difficult to concentrate due to noise of the actual work place. b) This method is often haphazard and unorganized. The superior or experienced employee may not be a good trainer. c) d) e) In this method the trainee may cause damage to costly equipment and materials. On the job training is, however, the most widely used and accepted method of training. It is suitable for all levels of employees, workers, supervisors and executives. It is appropriate for teaching knowledge and skills which can be learnt in a relatively short period of time and where only a few persons are to be trained on the job.

In order to make on the job training successful, some conditions must be satisfied.

(a) (b) (c)

What and how to teach should be carefully decided, The instructor should be carefully selected and trained, and A definite follow-up scheduled should be used to judge the result of training.

2. VESTIBULE TRAINING: in this method a training centre called vestibule is set up and actual job conditions are duplicated or simulated in it. Expert trainers are employed to provide training with the help of equipment and machines which are identical with those in used at the workplace.

Merits: a) The main advantage of vestibule training is that the trainee can concentrate on learning without disturbance pf the workplace noise.

b) duplicated.

The interest and motivation of the trainee are high as the real job conditions are

c)

This method is essential in cases where on the job training might result in a serious injury, a costly event, or the destruction of valuable equipment and material e.g., aeronautical industry.

d) teach.

Correct method can be taught effectively by the trained instructor who knows how to

e)

It permits the trainee to practice without the fear of being observed and indiscribed by the superior/co-worker.

f)

It is a very efficient method of training a large number of employees of the same kind of work at the same time.

g)

This method is also useful when it is not advisable to put the burden of training on line supervisors and when a special coaching is needed. It is often used to train clerk, bank tellers, inspectors, inactive operators, testers, typists, etc

EVALUATING TRAINING EFFECTIVNESS NEED FOR EVALUTION:

It is necessary to evaluate the extent to which training programmes have achieved the aims for which they were designed. Such an evaluation would provide useful information about the effectiveness of training as well as about the design of future training programmes.

CONCEPT OF TRAINING EFFECTIVNESS:

Training effectiveness is the degree to which trainee are able to learn and apply the knowledge and skills acquired in the training programme. it depends on the attitude ,interest , values ,and expectations of the trainee and the training environment . A training programme is likely to be more

effective when the trainees want to learn, are involved in their jobs, have career strategies. Contents of a training programme, and the ability and motivation of trainers also determine training effectiveness.

EVALUTION CRITERIA:

Evaluation of training effectiveness is the process of obtaining information on the effects of a training programme and assessing the value of training in the light of that information. Evaluation involves controlling and correcting the training programe.the basis of evaluation and mode are determined when the training programme is designed.

Retraining:

Retraining is the process of providing training to persons who underwent training earlier in their job. Retraining programmes are generally arranged for employees who have long been in the service of an organization. Such programmes are designed to avoid obsolescence of a person in terms of job requirements. Retraining is required on account of the following factors:

Some employees concentrate on a narrow task and lack all round knowledge and skills. Training is required to wider their knowledge and attitudes.

Employees who are called back to work after layoff are given training so as to handle highly skilled jobs. Due to technological changes some jobs may become unnecessary. Employees working on such jobs are retrained for other jobs.

Retraining is necessary to develop a versatile workforce capable of performing more than one job.

Retraining becomes necessary when the knowledge and skills of employees become obsolete due to rapid changes in technology. With automation and computerization new skills become necessary.

Due to changes in demand for goods and services, some new jobs are created. Retraining of exiting staff is needed to handle new jobs.

Retraining may be required at all levels. But it is more common for rank and file workers. This is so because technological make an immediate impact on these people. Moreover, they are less equipped to for see their personal needs and therefore, require greater assistance than others. Workers need refresher courses to help them recall what they have forgotten. They require retraining when work tools and methods change due to technological progress.

CONCEPT OF EXECUTIVE DEVELOPMENT

Executive development or management development is a systematic process of learning and growth by which managerial personnel gain and apply knowledge, skills, attitudes and insights to manage the work in their organizations effectively and efficiently. It is an educational process through which executives learn conceptual and theoretical knowledge and managerial skills is an organized

manner. Management development involves relating experience to learning. the main aim of formal education for manager is to increase his ability to learn from experience.

Executive development consists of all the means by which executives learn to improve their behavior and performance. It is designed to improve the effectiveness of managers in their present jobs and to prepare them for higher jobs in future. According to flippo, management development includes the process by which managers and executives acquire not only skills and competency in their present jobs but also capabilities for future managerial tasks of increasing difficulty and scope . Thus, executive development is any planned effort to improve current and future managerial performance. It is an attempt at improving an individuals managerial effectiveness through a planned and deliberate process of learning.

An analysis of these definitions reveals the following characteristics of executive development:

(1)

Executive development is a planned and organized process of learning rather than a haphazard or trail an error approach.

(2) It is an ongoing or never ending exercise rather than a one-shot affair. it Continues throughout an executives entire professional career because there is no end to learning.

(3)

Executive development is a long term process as managerial skills cannot be developed overnight.

Executive development is guided self-development. An organization can provide opportunities for development of its present and potential managers. But the images for learning have to come from the executive himself. Executives development is possible only when the individual has the desire to learn and practice what he learns. no amount of coercion can lead to development . Executive

develop Executive development aims at preparing managers for better performance and helping them to realize their full potential. (4) Development is eventually something that the executives have to attain him. But he will do this much better if he is given encouragement, guidance and opportunity by his company. (5) Executive development aims at preparing managers for better performance and helping them to realize their full potential.

Objectives of Executive Development

Any programme of executive development aims achieving the following purpose: 1. 2. To improve the performance of managers at all levels in their present jobs. To sustain good performance of managers throughout their careers by exploiting their full potential i.e, to prepare managers for higher jobs in future. 3. To ensure availability of required number of managers with needed skills so as to meet the present and anticipated future needs of the organization. 4. To prevent obsolescence of executives them to the latest concepts and Techniques in their respective areas of specialization. 5. To replace elderly executives who have risen from the ranks by highly competent and academically qualified professionals. 6. 7. To provide opportunities to executives to fulfill their career aspirations. To ensure that the managerial resources of the organization are utilized optimally.

Prof. A. Dasgupta has given objectives of executive development at various levels of authority. These are stated in table 3.3. it can be seen that for top management the objectives are mostly general and aim at developing the ability to understand and decide. On the other hand, objectives at middle and lower levels are more specific.

Executive Development Objectives at three levels of Authority

a) Top management

1.

To improve thought process and analytical ability in order to uncover and examine problems and take decisions in the best interests of the country and organization.

2.

To broaden the outlook of the executive in regard to his role, position and responsibilities in the organization and outside.

3. 4. 5.

To think through problems which may confront the organization now or in the future. To understand economic, technical and institutional forces in order to solve business problems. To acquire knowledge about the problems of human relations.

b)

Middle line Management

1. 2.

To established a clear picture of executive functions and responsibilities. To bring about an awareness of the broad aspects of management problems, and an acquaintance with, and appreciation of, inter departmental relations.

3. 4.

To develop the ability to analyses problems and to take appropriate action. To develop familiarity with the managerial uses of financial accounting, Psychology, business law and business statistics.

5. 6.

To inculcate knowledge of human motivation and human relationships. To develop responsible leadership.

c)

Middle Functional Executives and Specialists

1.

To increase knowledge of business functions and operations in specific fields in marketing production, finance, personnel.

2.

To increase proficiency in management techniques such as work study, Inventory control, operations research, quality control.

3. 4. 5. 6.

To stimulate creative thinking in order to improve methods and procedures. To understand the functions performed in a company. To understand industrial relations problems. To develop the ability to analyse problems in ones area or functions.

Importance of Executive Development

Executive development is necessary for the following reasons: (i)The size and complexity of organizations, both business and non-business are increasing. Managers need to be developed to handle the problems of giant and complex organization in the face of increasing competition.

(ii)The rapid rate of technological and social change in society requires training of Managers so that they are able to cope with these changes automation, cut throat competition, growth of new markets, enlarged labour participation in management, growing public and government interest in business activities are the major problems that have to be handled.

(iii)Business and industrial leaders are increasingly recognizing their social and public responsibilities. They require a much broader outlook to discharge these new responsibilities. Executive development is required to broader the outlook of managers.

(iv)Labor management relations are becoming increasingly complex. Executives require new and better skills in union negotiations, collective bargaining, grievance redressal, etc. Workers are better educated and more aware. More competent managers are needed to manage the modern workforce.

(v)There is a noticeable shift from owner managed to professionally managed enterprises, even in family business houses. Executive development programmes are required to train and develop professional managers.

(vi)Executives need education and training to understand and adjust to changes in socio-economic forces. Changes in public policy, concepts of social justice, industrial democracy, ecology (pollution) ekistics (human settlements), ergonomics (working environment), and cultural anthropology (problem of fitting machines to men) are the main socio-economics changes. Without management development programmes, executives may become obsolete. Executive personnel will not be able to survive in future unless they keep pace with modern management education, research, principles, and practices.

(vii) Management of public utilities, state enterprises and civic bodies is being professionalized in order to improve operational efficiency. Similarly, agriculture, rural development and public administration require professional executives. No organization can be successful in the long run without a planned approach to the development of its managerial persons. In the words of Peter Drucker, an institution that can not produce its own managers will die. From an overall point of view the ability of an institution to institution to produce managers is more important than its ability to produce goods efficiently and cheaply

Process of Executive Development

The essential ingredients of an executive development programme are as follows: 1. Analysis of Development needs: First of all the present and future developmental needs of the organization are ascertained. It is necessary to determine how many and what type of executives are required to meet the present and future needs of the enterprise. This calls for organizational planning. A critical analysis of the organization structure in the light of future plans will reveal what the organization needs in terms of departments, functions and key executive positions. Then job descriptions and specifications are prepared for all executive positions to know the type of knowledge, skills training and experience required for each position.

2.

Appraisal of Present Managerial Talent: A qualitative assessment of the existing executives is made to determine the type of executive talent available within the organization. The performance of every executive is compared with the standard expected of him. His personal traits are also analyzed to estimate his potential for development.

3.

Inventory of Executive manpower: this inventory is prepared to obtain complete information about each executive. Data on the age, education, experience, health, test result and performance appraisal results is collected. This information is maintained on cards or replacement tables, one for each executive. An analyse of this information will show the strengths as well as deficiencies of executives in certain functions relative to the future needs of the organization.

4.

Planning Individual Development Programmes: each one of us has a unique set of physical, intellectual and emotional characteristics. Therefore, development plan should be tailor made for each individual. Such tailor made programmes of development should give due attention to the interests and goals of the subordinates as well as to the training and development opportunities existing in the organization.

5.

Establishing training and Development Programmes: The human resource department prepares comprehensive and well conceived programmes. The department identifies development needs and may launch specific courses in fields of leadership, decision making, human relations, etc. it also recommends specific executive development programmes organized by well-known institutes of management. On the basis of its recommendations, the top programmes at the cost of the company.

6.

Evaluating development programmes: considerable money, time and efforts are spent

on

executive development programmes. It is therefore; natural to find out to what extent the programme objectives have been achieved. Programme evaluation will reveal the relevance of the development programmes and the changes that should be made to make these more useful to the organization. Observation of the trainees behaviour, rating of the training elements, opinion surveys, interviews, tests and changes in productivity, quality, cost etc. can be used to evaluate development programmes. General result of development programmes can be measured in the long run. But some specific result may be assessed during the short term.

Methods and Techniques of Executive Development Various techniques of executive development may be classified into two broad categories as shown in fig.

Executive Development

On the job Techniques

off the job Techniques

Coaching Under Study Position Rotation Project Assignment Committees

Lectures Case Studies Group Discussions Conferences Role Playing

On the job training is most suitable when the aim is to improve on the job behavior of executives. Such training is inexpensive and time saving. The motivation to learn is high as training takes place in the real job situation. The trainee can size up his subordinates and demonstrate his leadership qualities without artificial support. But neither the trainer nor the trainee are free from the daily routine and pressure of their respective jobs. On the job-training is given through the following methods.

1. Coaching: In this method, the superior guides and instructs the trainee as a coach. The coach or counselor sets mutually agreed upon goals, suggest how to achieve these goals, periodically reviews the trainees progress and suggests changes required in behavior and performance. Coaching method offers several advantages: (i) It is learning by doing (ii) Every executive can coach his subordinate even if no executive development programme exists (iii) Periodic feedback and evaluation are a part of coaching. (iv) it is very useful for orientation of new executives and for developing operative skills. (v) it involves close interactions between the trainee and his boss. Coaching method, however, suffers from certain disadvantages: (i) it tends to perpetuate current managerial styles and practices in the organization. (ii) it requires that the superior is a good teacher and guide (iii) the training atmosphere is not free from the worries of daily, routine. (iv) the trainee may not get sufficient time to make mistakes and learn from experience.

Coaching can be effective if the coach is a good communicator, anable motivator and a patient listner. Coaching will work well if the coach provides a good model with whom the trainee can identify, if both can be open with each other, if the coach accepts his responsibility fully, and if he provides the trainee with recognition of his improvement and suitable rewards. In some cases, an assistant to position is created. The trainee is made the assistant of a specific manager. The manager teaches and exposes the trainee to managerial principles and practices.

2. Understudy: An understudy is a person selected and being trained as the heir apparent to assume at a future time the full duties and responsibilities of the position presently held by his superior. In this way a fully trained person becomes available to replace a manager during his long absence or illness, on his retirement, transfer, promotion or death. The superior routes much of the departmental work through the junior, discusses problems with him and allows him to participate in the decision making process as often as possible. The junior is generally assigned tasks which are closely related to the work in his section and he is deputed to attend executive meetings as a representative of his superior.

Under study method provides many advantages: (i) the trainee receives continuous guidance from the senior and gets the opportunity to see the total job (ii) it is practical and time saving due to learning by doing (iii) the trainee takes interest and shows the superior work load (iv) the junior and the senior come closer to each other (v) it ensures continuity of management when the superior leaves his position. Understudy method, however suffers from the following disadvantages (i) it perpetuates the existing managerial practices. (ii) As one employees is identified in advance as the next occupant of higher level managerial position, the motivation of other employees in the unit may be affected.(iii) the subordinate staff may ignore the understudy and treat him as an intruder without clear authority and responsibility (iv) under an overbearing senior, the understudy may lose his freedom of thought and action. The success of this method depends upon the teaching skills and cooperation of the superior with whom the understudy is attached.

3. Position Rotation: it involves movement or transfer of executives from one position or job to another on some planned basis. These persons are moved from one managerial position to another according to a rotation schedule. Position rotation is also called job rotation. or position rotation is often designed for junior executive .IT may continue for a period ranging from six month to two years According to Bennett . Job rotation is a process of horizontal movements that widens the managers experience horizon beyond the limited confines of his own

Job rotation method offers the following advantage: (1) it helps to reduce monotony and boredom by providing variety of work (2) It facilitates interdepartmental cooperation and coordination (3)it infuses new concepts and ideas into elder personal (4) Executive get a chance to move up to higher position by developing them into generalists (5) best utilization can be made of each executives skills .

Job rotation method suffer from the following disadvantage ;(1) Job rotation may cause disturbance in established operation (2) The trainee executive may find it difficult to adjust himself to frequent moves. He may feel insecure in the absence of stable interpersonal relationship (3) The new in cumbent may introduce ill conceived and hasty innovations causing loss to the organization (4) Job rotation may demotivate intelligent and aggressive trainee who seek specific responsibility in their chosen specialization. (4) It may cause jealously and friction due to the game of musical chairs. Job rotation can cause class distinctions and misunderstanding Executives who are not moved develop defensive reactions. (6) It may upset family and home life when transfers are made to different geographical areas.

4. Projects assignments Under this method a number of trainee executives are put together to work on a project directly related to their functional area. The group called project team or task force will study the problem and find appropriate solutions. For instance, accounts officers may be assigned the task of designing and developing an effective budgetary control system. By working on this project, the trainee learns the work procedures and techniques of budgeting. They also come to learn the interrelationship between accounts and other departments. This is a flexible training device due to temporary nature of assignments. Sometimes, a syndicate or team consisting of persons of mature judgment and proven ability is constituted. It is given a task properly spelt out in terms of brief and background papers. Participants represent different functional areas to facilitate interchange of ideas and experience. Each syndicate prepares a report to be discussed by other executive groups.

5. Committee Assignment: A permanent committee consisting of trainee executives is constituted. The entire trainee participates in the deliberations of the committee. Through discussion in committee meetings they get acquainted with different viewpoints and alternative methods of problem solving. They also learn interpersonal skills.

6. Multiple Management: This technique was developed by Charles P. McCormick oh McCormick Corporation of Baltimore, USA Under. Under it a junior board of young executives is constituted. Major problems are analyzed in the junior board which makes recommendations to the Board of Directors.

7. Selective Readings : Managing has becomes a specialized job requiring a close touch with latest development in the filed .By reading selected professional books and journals managers can keep in touch with the latest research findings , theories and techniques in management .No executive can afford to rely slowly and others to keep him informed of innovation in management . Reading of current management literature helps to avoid managerial obsolescence .Selective reading constituent an individual self development programmed for executives .many organization maintain libraries for there executives and managers are encouraged to continually read and improve their skills .

8. Lectures : These are formally organized talks by an instructor on specific topics .Lectures are essential when technical or special information of a complex nature is to be provided .These can be supplemented by discussions case studies demonstration audio visual aids and film shows .Lecture method is the simple way of imparting knowledge to a large number of persons with in a short time It is very useful when facts, concepts ,principle , attitude ,and problem solving skills to be thought .More material can be presented within a given time then by any other method .Lecture can be used to introduce a subject to reduce anxiety about upcoming training programmes or organizational changes to present basic material that will provide a common background and to illustrate the applications and rules and principles :The lecture method suffers from the following limitation (1) Lecture is one way communication .There is no participation an feedback from the audience (2) The audience losses attention quickly as they are passive listener .The focus is on accumulation and memorization rather then on application of knowledge (3) It requires a great deals of preparation and speaking skills for which executive may lack time

(4) The presentation of material has to a common level of knowledge (5)It becomes unpalatable to the audience when to much information is packed in the lecture.

Lecture method can be made effective in the following ways.

A Lecture should well planed as to its purpose and continuous The lecturer should be component and a good speaker He should keeps in mind the listeners needs and interests The lecture should not be for more then one hour The lecture should be made interesting through discussion and audio visual aids leading question guided

(9)

Group discussion

It is a variant of the lecture method .Under it paper is prepared and

presented by one are more trainees on the selected topics .This is followed by a critical discussion The chair man of the discussion or seminar summaries the contents of the paper and the discussion which follows .Often the material to be discussed is distributed in advance .Seminars and conference enable executives to learn from the experiences of each other and have become quite popular. 10. Case Study Method : Under this method a real or hypothetical business problems or

situation demanding solution is presented in writing to the trainees They are required to identify and analyze the problem suggest and evaluate alternatives courses of action and choose the most appropriate solution .The trainer guides the discussion and ensures that no relevant fact is over looked.

It is now almost axiomatic that the strategic goal of modern commercial organizations is to create more intelligent and flexible firms then their competitors by hiring and developing more talented human resources and by extending their skill base It is imperative in the context of new business realities that organization should be able to continuously innovate be customer- focused and remain cost competitive to survive grow and excel in the long run. During the 1980s Japanese management practices clearly indicated that business success based on high standards of performance which was dependent on a highly trained and developed workforce (Brown and Read 1984) Recent research also indicates a causal link between high commitment practices (including training and development) and improvements in an establishment performance and competitive advantage (Patterson et at., 1998; rajan., 1996)

The need for focusing on the international and comparative dimension of corporate T & D policies has been increasingly felt ever since many nations of the world such as China, India, Latin America, and East Central Liberalized privatized and globalize their economic policies. This trend is indicative of the fact that many of the changes influencing skill deficiencies and acquisition are common to many countries.

The various aspects and issues pertaining to the corporate training and development sector in India are presented in table 1

Table 1: Corporate and Development Sector in India Parameter Percentage of payroll spent on training Training money spent per employee Average training hours per employees Percentage of employees trained per year HRD or training staff per 1000 employees Indicator 1.2% Rs. 253.3 4.7 55.3% 2.3

Source: Blackwell publishing Ltd., 2003 corporate training and development

The key responsibility for training and development is handled by the personnel as shown in table 2

Table 2: The Handing of Responsibility for Training and Development Position Personnel / HRT / Training Specialist HRD or training staff per 1000 employees 2.3 percentage 71%

Source: Blackwell publishing Ltd., 2003 corporate training and development

Table 3: The Driving Forces for Taining. and Development Initiatives Driving Force Percentage

Pressure for increased quality, innovation, and productivity Need to enhance the efficiency and effectiveness of employees Need to change corporate culture To achieve better ROI To achieve better industrial relation Needs, wishes and demands of employees

79% 65% 62% 54% 27% 30%

Source: Blackwell publishing Ltd., 2003 corporate training and development

The major driving forces for training and initiatives are, formerly, all that a new employee needed in order to learn a job was to sit beside an experienced employee and observe. It was assumed that this way, perhaps by osmosis, the novice would learn his/her job. But plots change and so do training methods. The increasingly complex picture of todays job market merits better training methods rather than the old sit by by Nellie technique, for Nellie herself has evolved into a technician who performs a variety of function too subtle and complex to be learned from mere observation.

Since the beginning of the 20th century and especially after world war 2nd training programs have become widespread among organizations involving more and more employees and also expending in content. By the 1990s 40% of the fortune 500 firms have had a corporate university or learning center ( Meister 1997 ) According to the 1995 survey of employer provided training center , nearly 93% of the us organization with 50 or more employees provided formal training and close to 70% of their employees ranging from executive to frontline workers are involved in recent decades as the us companies are confronted with technological changes domestic social problems and global economic competition training programs in organizational have received even more attention touted as almost a panacea for organizational problems ( carnevale Gainer and villet 1990 )

In todays highly competitive scenario and globalization its more important then ever that institutions train there staff on best practices regulatory requirements and professional development After all strong training is fundamentals for key operational goals such as : Increase in competitive advantage ensure compliance with laws and regulations Maximizing operational efficiencies Reinforcement of a customer-centric organization

Today, the challenge is not just in terms of updating technologies but also in terms of maintaining existing workforce motivated and challenged all the time. Organizations need to have highly flexible and dynamic teams of highly enthusiastic motivated and creative people. In order to have all this, there is a need to emphasize more on employee training provided by the employer. Highly skilled and motivated workforce is the workplace and organizations of the present and future needs.

Increasing use of computer technology restructuring of business and a growing global economy are some of the factor economists cite as contributing to change in the employment structure of the us economy since the early 1980s ( Rosenthal, 1995 ) Furthermore, there is a considerable growth projected to occur in occupations with higher educational requirements The job classifications that currently use low-skilled workers are experiencing up killing which translates into a need for

more responsibility more knowledge and ultimately more skill and there has been stagnation and even a decrease in the number of jobs that are unskilled or very low skilled ( Barnow , Chasanov and Pande 1990 )

The role of training and development in the service sector, more specifically in the banking sector is no different from the rest of the organizations in the world. Operating in the banking sector, the training and development functions plays a further enhanced role and holds more importance as it deals with knowledge workers and intelligent customers.

In the banking sector, the training and development function holds a key responsibility by helping upgrade employee performance on a continuous basis. Also, most banks who adopt the from hire to retire approach benefit from training and development activities by allowing a continuity in the developing process of bank personnel. Training and development activities get highlighted in the area of job satisfaction and motivation. The bank are employing a better educated workforce They enter the bank with high expectation and they seem to have a greater need for responsibility, recognition meaningful participation, advancement and growth. they expect things to happen more

quickly than employees did in the past . states William Murray , COO of Harris Bank , Chicago , USA ( murray , 1976).should be vary clear with the purpose of the training , purpose of the evaluation , measures to evaluate and the performance indicators , which can help organization to know the benefits of training . This is very important since in justifying investment made by the organization on training and development activities .

The need for the training function to demonstrate that spending money on training is justifiable follows as an inevitable consequence of the new HR .Measuring the effectiveness of training practice; it is also one of the most neglected activities, both in theory and in practice. Most banking organization does not bother to ensure a rigorous evaluation process. Many feet that training can not be valued do not bother to ensure a rigorous evaluation process. Many feel that training cannot be valued in the financial terms and therefore training is not validated in a professional manner.

Perdue, Ninemeier, and woods ( 2002 ) assessed perceived relative effectiveness of alternative training methods ( in relation to specific objectives ) among managers of private clubs. They used an e mail questionnaire to collect their data from a random sample of 123private club managers in USA> the results indicate that one-to-one training is considered the most useful overall method and the preferred method for all objectives except interpersonal skill development.

Buch and Bartly (2002) examined the relationship between learning styles and preferences for alternative delivery modes used by most organization today. Delivery modes included computerbased methods, TV-based methods, and classroom based methods. Learning styles included converges, accommodators, diverges, and assimilators.

Klink and streumer (2002) examined the effectiveness of on-the-job training and some potential factors that explain effectiveness of two samples drawn from two Dutch companies.

Hashim (2001) surveyed 262 training institutes in Malaysia to identify the practices of training providers for evaluating training programs. The results show that training provides use different evaluation methods that include trainees feedback , observations , interviews , performance analyses , and training reaction forms.

Bolt, killough, and koh (2001) examined the behavior modeling and lecture-based approaches to computer training using a social cognitive theory framework.

Hughey and Musshug (1997) elaborated on some training success factors. The authors indicated that soft skills such as listening, communication, teamwork and leadership are the least preferred in terms of tangible training gains. training should only involve tangible, hands-on skills and observable behaviors. Thus, training objectives should focus on skills and competencies.

Leat and lovell (1997) discussed some of the weakness of current training needs analysis. They cited imprecise training goal setting and failure of the performance appraisal reviews to diagnose needed areas to improve employees skills in the working environment. The authors indicated that a variance between actual performance objective should uncover training needs. But these needs should not be limited to that level only. Possible improvements at the organization and task levels should also be evaluated, as part of training needs analysis. Training expectations should also be developed and detailed after an extensive research into the interrelationship between inner and outer contextual changes and within the organization and individual goals.

Mann and Robertson (1996) examined trainees reactions and knowledge gained as measures for effective training. They used a small sample of 29 trainees who were recruited from a three day training E-mail an internet seminar held in Switzerland. Each trainee was asked to fill a questionnaire before the training at the end of the training and one month later. The results indicate that training increased trainees knowledge. However positive attitudes do not predict how well people are able to

perform actual tasks. Attitudes and reaction measure are not linked to later performance and therefore such measures should be used with caution as ways of evaluating training programs.

Hedges and moss (1996) examined the cost-effectiveness of training commercial vehicle drivers. They selected a sample of 80 drivers who went through a specific driver training program and a matched sample from those who did not attend the driver training program. All drivers were from the parcel force in north England. The parameters investigated were operating costs in terms of fuel consumption, accident and repair cost maintenance costs, and drivers attitude.

Harris (1995) surveyed the opinions of a sample of American directors of human resources and training programs about their training methods and the quality of each of these methods. The results indicate that the most used method of training is the classroom method. One-on-one training such as on the job training is the method most used by smaller firms. The most innovative form of technology used, regardless of company size was videotape. The major barriers or obstacles to using more innovative tools (i.e, computer based ) were high costs and short life span of current computer technology. The author conclude that training methods and tools used to train employees were not as efficient as they could be and recommended using computer-based technology and multi-media as training methods as they save time and money.

SECTION -C

RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation.

Significance and scope of the study

6. The study will be of great use to the bank employees as they will get to know the true impact of training programmes. 7. The study will be beneficial for the students as well in understanding the concept of training & development and also its implications. 8. Training helps to improve the level of performance. Trained employees perform better by using better method of work . 9. Proper training can develop positive attitudes among employees. Job satisfaction and morale are improved due to a rise in the earnings and job security of employees.

10. Training enlarges the knowledge and skills of the participants. Therefore, well trained personnel can grow faster in their career.

Objective of the research

1. To find out the impact of training& development programmes on the performance and attitude of employees as well as organization productivity. 2. To find out the reason of success or failure of these programmes. 3. To gain the in-depth information and knowledge about the training and development programmes and its impact on the effectiveness of the employees. 4. To get the information about the training and development programmes and its necessities that how it helps the organization in increasing productivity and in achieving objectives effectively and efficiently.

Research design
The formidable problem that follows the task of defining the research problem is the preparation of the design of the research project, popularly known as research design

Research type
Research type used is descriptive. Descriptive research studies are those studies which are concerned with describing the characteristic of a particular individual or a group.

Source of data
The researcher should keep in mind two types of data viz. primary and secondary. Primary data; are those which are collected a fresh and for the first time, and thus happen to be original in character.

Secondary data; are those data which have already been collected by someone else and which have already been passed through statistical process. Source of data is both primary and secondary. Primary data is collected through questionnaire which consists of a number of questions printed or typed in a definite orders on a form or set of forms. Questionnaire used is structured having close ended multiple choice questions. Analysis will be done on the basis of data which has been collected in questionnaire. Secondary data is collected from books, journals, magazines

Sampling plan
Sample unit. For research work Lucknow city is taken as sample unit.

Sample size The sample size consists of 105 units out of which the most logical and non biased response are selected thus the sample size is taken out to be 100 units.

Sample procedure Random sampling has been taken as sample procedure for conducting research work. Under this sampling, every item of the universe has an equal chance of inclusion in the sample. Random sampling is one in which the samples are selected randomly in accordance with the users wish or according to the situation. This type of sampling facilitates the working of the surveyor. Decreases the work load of the conductor of the survey and is less complex and hectic.

LIMITATION

Though best efforts have been made to make the study fair, transparent and error free. But there might be some inevitable and inherent limitation. Though outright measure are undertaken to make the report most accurate

The limitations of the survey are narrated below.

1) It was not possible to cover each and every organization due to time constrains of the research report. 2) There may be some biased response from the respondent. 3) Some respondents did not provide full data. 4) Restriction to disclose the organization information which is necessary for research work. 5) Area is selected.

SECTION -D

ANALYSIS
S.No
1.

Head
Length of service. A) 0-2 yrs B ) 2-5 yrs C ) 5-8 yrs

Response
40% 30% 18% 12% 90% 10% 88% 12% 30% 35% 19% 16% 05% 80% 10% 05% 25% 75% 00% 00% 15% 50% 25% 10% 09% 55% 20% 16% 09% 36%

2.

Regular Training Programmes.

D ) More then 8 yrs A ) Yes B ) No

3.

Training conducted after identifying training needs.

A )Yes B ) No A ) Managerial Skills B ) Technical Skills C ) Administrative Skills

4.

Training Programmes Conducted to improve

5.

Training programmes improve interpersonal relationship.

D ) Interpersonal skills A ) Strongly agree B )Agree C ) Hardly agree

6.

Training programmes always beneficial for employees.

D ) Disagree A ) Strongly agree B )Agree C ) Hardly agree

7.

Training reduce work stress.

D )Disagree A ) Strongly agree B ) Agree C ) Hardly agree D )Disagree

8.

Training programmes reduce monotony of job.

A ) Strongly agree B ) Agree C ) Hardly agree

9.

Training programmes reduce absenteeism.

D ) Disagree A ) Strongly agree B ) Agree

C ) Hardly agree 10. Training programmes are helpful in reducing turnover rate. D ) Disagree A ) Strongly agree B ) Agree C ) Hardly agree 11. Training programmes increase the self worth of employees. D ) Disagree A ) Strongly agree B ) Agree C ) Hardly agree 12. Training programmes actually help D ) Disagree A ) Strongly agree

30% 25% 10% 40% 30% 20% 18% 70% 12% 00% 09% 60% 25% 06% 26%

in overall development of employees B )Agree C ) Hardly agree 13. More need of Training is required in D ) Disagree A ) Soft skills

B ) Employee development 30% C ) Technical skills D ) Any other 37% 07%

THE DATA TABULATION

Q.1. For how long have you been working in the organization?

FINDING

0-2 yrs 2-5 yrs 5-8 yrs More than 8 yrs

40% 30% 18% 12%

12% 18%

40%

30%

0-2 yrs

2-5 yrs

5-8 yrs

m ore than 8 yrs

Q.2. Does your organization have regular training programmes?

FINDING

Yes No

90% 10%

10%

90%

Yes

No

Q.3. Training programs are conducted only after identifying Training needs

FINDING

Yes

88%

No

12%

Yes

No

12% 12%

88%

Q.4. Training programs are conducted in your organization to Improve:

FINDING

Managerial Skills Technical Skills Administrative Skills Interpersonal Skills

30% 35% 19% 16%

Q.5. Training programmes have been able to improve interpersonal relationship?

FINDING

40%

Managerial Skills, 30%

Technical Skills, 35%

Strongly Agree 30% Hardly Agree Disagree 20%

Administrativ 05% e Skills, 19%

80% 10% 05%

Interpersonal Skills, 16%

10% 0%

80% 60% 40% 20% 0% 5%

80%

S e r ie s 1 10% 5%

S t r o n g ly A g re e H a rd ly D is a g r e e a g re e A g re e

Q.6. Training programmes have always been beneficial for

Employees?

FINDING

Strongly Agree Hardly Agree Disagree

25% 75% 00% 00%

75%

25%

Strongly agree

Agree

Hardly agree

Disagree

Q.7. Training programs reduce work stress?

FINDING

Strongly agree Agree Hardly Agree Disagree

15% 50% 25% 10%

Agree, 50%

50% 40% 30% 20% 10% 0%

Stongly agree, 15%

Hardly agree, 25% Disagree, 10%

Q.8. Training programs reduce the monotony of job?

FINDING

Strongly agree Agree Hardly Agree Disagree

09% 55% 20% 16%

Agree, 55%

60% 50% 40% 30% 20% 10% 0%

Stongly agree, 9% Hardly agree, 20% Disagree, 16%

Q.9. Training programs reduce absenteeism?

FINDING

Strongly agree Agree Hardly Agree Disagree

09% 36% 30% 25%

25% 30%

9% 36%

Strongly agree

Agree

Hardly agree

Disagree

Q.10. Training programs are helpful in reducing turnover rate?

FINDING

Strongly agree Agree Hardly Agree

10% 40% 30%

Disagree

20%

20%

10%

Strongly agree Agree

30%

40%
Hardly agree Disagree

Q.11. Training programmes increase the self worth of employees?

FINDING

Strongly agree Agree Hardly Agree Disagree

18% 70% 12% 00%

12%

18%

Strongly agree Agree

70%

Hardly agree Disagree

Q.12. Training programmes actually help in overall development of employees?

FINDING

Strongly agree Agree Hardly Agree Disagree

09% 60% 25% 06%

Agree, 60%

60% 50% 40% 30% 20% 10% 0%

Stongly agree, 9% Hardly agree, 25% Disagree, 6%

Q.13. in which areas do you think there is more need of training?

FINDING

Soft skills Employee development Technical skills Any other

26% 30% 37% 07%

37% 40% 30% 20% 10% 0%

S s il l sk t of o pl m E e ye .. p. T ill sk l ca s y An he ot r

26%

30%

7%

elo ev d

i hn ec

CONCLUSION & SUGGESTION

Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people learn knowledge and skill for a definite purpose. The purpose of training is basically to bridge the gap between job requirements and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending or continuous process. Training is closely related with education and development but needs to be differentiated from these terms.

The overall aim of a training programme is to fill in the gap between the existing and the desired pool of knowledge, skills and aptitudes .Objectives of training express the gap between the present and the desired performance levels. Definition of training objectives in both quantitative and quantitative terms will help to evaluate and monitor the effectiveness of training. Involvement of top management is necessary to integrate the training objectives with the organizational objectives

employees and are even responsible for increasing overall efficiency level of employees, reduced monotony, stress & absenteeism and are responsible for development & growth of banking sector employees. FROM THE SECONDARY DATA From the study it has been found that 30% respondents believe that training programmes improve managerial skills, while 35% believe it is responsible for improving technical skills. Further it is found that training programmes improve interpersonal relationship. About 80% respondents are of the same view. 75% respondents believe that training programmes are always beneficial for employees 25% respondents strongly emphasis this point. Moreover, training programmes increase the self worth of

Closer analysis of the study of findings from the data collected reveals that the Hypotheses

No individual or system is perfect for all times, so training and development activities with the changed order must take place. Following suggestion have been proposed to improve the training effectiveness of banking sector employees:

Technical training should be provided more.

Training must be imparted in a trainee friendly atmosphere.

Training and development activities should be a regular process.

Top management should appreciate the role of training and development.

Transparency should be maintained in selecting the trainees.

Trainees should be motivated.

Bibliography

Name of the Book HRM Research Methodology ICFAI Journal of O.B. April 2004 ICFAI Journal of O.B. January 2005 Journal of management research vol 4, No.3Dec.2004

Name of the author Dr. C.B.Gupta C.R.Kothari T Krishna Kumar

Publisher S.Chand & Sons New age international

T Krishna Kumar

Annexure 1

Questionnaire for employees of banking sector

Name .. Age ..

Designation

Gender Organization

Contact No

Note : All the information provided will be confidential and will only be used for research project purpose

Q.1.

For how long have you been working in the organization? A) 0-2yrs c c B) 2-5yrs c c C) 5-8 yrs

D) More than 8yrs

Q.2.

Does your organization have regular training programmes? A) Yes c B) No c

Q.3.

Training programmes are conducted only after identifying Training needs? A) Yes c B) No. c

Q.4.

Training programmes are conducted in your organization to improve? A) Managerial skills c B) Technical skills c c C)

Administrative skills c E) Any other

D) Interpersonal c

Q.5.

Training programmes have been able to improve interpersonal relationship? A) Strongly agree c D) Disagree c B) Agree c c C) Hardly

agree

c E) Strongly disagree

Q.6.

Training programmes have always been beneficial for employees?

A) Strongly agree agree c E) Strongly disagree

c D) Disagree c

B) Agree c

C) Hardly

Q.7.

Training programmes reduce work stress? A) Strongly agree c D) Disagree c B) Agree c c C) Hardly

agree

c E) Strongly disagree

Q.8. Training programmes reduce the monotony of job?

A) Strongly agree D) Disagree E) Strongly disagree

c c c

B) Agree c

C) Hardly agree

Q.9. Training programmes reduce absenteeism?

A) Strongly agree agree c E) Strongly disagree

c D) Disagree c

B) Agree c

C) Hardly

Q.10. Training programmes are helpful in reducing turnover rate?

A) Strongly agree agree c E) Strongly disagree

c D) Disagree c

B) Agree c

C) Hardly

Q.11. Training programmes increase the self worth of employees?

A) Strongly agree agree c E) Strongly disagree

c D) Disagree c

B) Agree c

C) Hardly

Q.12. Training programmes actually help in overall development of employees?

A) Strongly agree agree c E) Strongly disagree

c D) Disagree c

B) Agree c

C) Hardly

Q.13. In which areas do you think there is more need of training?

A) Soft skills Technical skills c

B) Employee development D) Any other c

C)

Q.14. Suggest same ways to improve the efficiency of training programmes in Banking sector?