Professional Documents
Culture Documents
A Study On Training & Development of HDFC Bank: Project Titled
A Study On Training & Development of HDFC Bank: Project Titled
Submitted by:
_______________________
Enrollment no. __________________
Submitted to:
_______________________
CERTIFICATE OF ORIGINALITY
This is to certify that the project titled A Study on Training Practices of
Public Sector Banks is
i an original work of the Student and is being
submitted in partial fulfillment for the award of the Masters Degree in
Business Administration of Indira Gandhi National Open University. This
report has not been submitted earlier either to this University or to any other
University/Institution for the fulfillment of the requirement of a course of
study.
SIGNATURE OF SUPERVISOR
SIGNATURE OF STUDENT
Place:
Place:
Date:
Date:
ii
ACKNOWLEDGEMENT
Project work is never the accomplishment of an individual. Rather, it is an
amalgamation of the efforts, ideas and co-operation of a number of entities.
The completion of the project study that follows seemed to be a distant goal,
had it not been for the contributions of a number of people.
I extend a sincerest thanks to my project guide __________________
whose expertise paved the way for realization of the study objectives. The
Guide helped me a lot in each stop of the project and pointed out the area,
which needed more stress and coverage.
The pearls of learning obtained during the course of the project would surely
go a long way in shaping my career.
___________________
iii
TABLE OF CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION
COMPANY PROFILE
INDUSTRY PROFILE
12
LITERATURE REVIEW
16
56
57
58
RESEARCH METHODOLOGY
59
61
68
RECOMMENDATION
78
CONCLUSION
79
80
BIBLIOGRAPHY
81
ANNEXURE
82
iv
EXECUTIVE SUMMARY
Never before has the rapid increase in new knowledge and technology and
in the base of change and itself demanded a learning response as great as
what is now required to remain competitive. Today individuals and
organizations must become continuous learners to survive and hence it is
not surprising to find that most successful organisations operate in a
continuous learning mode.
The
challenge
of
globalization,
technological
innovation
increasing
learning
behaviour
results required
INTRODUCTION
Every organization needs well-trained and experienced people to perform
the activities that must be done. A job in today's dynamic organizations have
increasingly become complex, the importance of employee education and
training has increased. When jobs were simple, easy to learn and influenced
only a small degree of technological changes, there was little need for the
employees to upgrade their skills. But the situation has drastically changed
today. Instead, rapid job responsibilities are occurring, requiring employee
skills to be transferred and tuned.
Training is a learning experience in that; it seeks a relatively permanent
change in an individual that will improve the ability to perform on the job.
Training can involve changing of skills, knowledge, attitudes and behaviour.
Training is a prerequisite to improved performance as preparing human
resources for new jobs, transfers, promotions or change over to modern
technology as equipment. In addition to training of new entrants, manpower
at all levels require refreshers' training from time to time to avoid personal
obsolescence and improving competency to hold higher positions. Filippo
Lucidly discussed several advantages that stem from training. This includes
increased productivity, heightened morale, reduced supervision, reduced
accidents and increased organizational stability and flexibility. With the
increase in skills, there results an increase in both quality and quantity of
performance. The individuals who are equipped with the requisite training
accomplish the basic human needs such as security and ego satisfaction.
Trained employees can perform their work effectively even with little
supervision. It has been recognized that more errors are caused because of
inadequate preparedness on the working conditions. Adequate training on
job skills and positive attitude is likely to minimize rates of errors
considerably. The ability of the organization to maintain its effectiveness
despite the loss of key persons can be accomplished by keeping a reservoir
of trained replacement.
COMPANY PROFILE
The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an 'in principle' approval from the Reserve Bank
of India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalisation of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.
HDFC is India's premier housing finance company and enjoys an
impeccable track record in India as well as in international markets. Since its
inception in 1977, the Corporation has maintained a consistent and healthy
growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial markets, a strong
market reputation, large shareholder base and unique consumer franchise,
HDFC was ideally positioned to promote a bank in the Indian environment.
HDFC Bank began operations in 1995 with a simple mission: to be a "Worldclass Indian Bank". We realised that only a single-minded focus on product
quality and service excellence would help us get there. Today, we are proud
to say that we are well on our way towards that goal.
Company Vision
To build a World-Class Indian Bank.
It is extremely gratifying that our efforts towards providing customer
convenience have been appreciated both nationally and internationally.
2007
Asian Banker
Our Managing Director Aditya Puri wins the Leadership Achievement Award
for India
2006
Business Today
Best Bank in India.
Forbes Magazine
One of Asia Pacific's Best 50 companies.
Businessworld
Best listed Bank of India.
The Asset Magazine's Triple A Country Awards
Best Domestic Bank.
Asiamoney Awards
Best Local Cash Management Bank in Large and Medium segments.
Euromoney Awards
"Best Bank" in India.
2005
Asiamoney Awards
Best Domestic Commercial Bank
Asiamoney Awards
Best Cash Management Bank - India .
The Asian Banker Excellence
Retail Banking Risk Management Award in India.
Hong Kong-based Finance Asia magazine
Best Bank India
2004
Asiamoney Awards
Best Local Cash Management Bank in India US$11-100m
Asiamoney Awards
Best Local Cash Management Bank in India >US$501m
Asiamoney Awards
Best Local Cash Management Bank in India 1989-2004 (poll of polls)
Asiamoney Awards
Best Overall Domestic Trade Finance Services in India - 2004
Asiamoney Awards
Most Improved company for Best Management Practices in India - 2004
Business World
One of India's Most Respected Companies - 2004
Forbes Global
Best Under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and
Europe - 2004
Asian Banker Awards
Operational Excellence in Retail Financial Services - 2004
The Asset Triple A Country Awards
Best Domestic Bank in India - 2004
2003
Forbes Global
Best Under a Billion, 200 Best Small Companies - 2003
The Asset Triple A Country Awards
Best Domestic Bank in India -2003
BusinessWorld - The Business World Most Respected Company Awards
One of India's Most Respected Companies
The Asset magazine
Best Cash Management Bank
The Asset magazine
Best Trade Finance Bank
FE-Ernst & Young Best Banks Survey
Best New Private Sector Bank - 2003
Outlook Money
Best Bank in the Private Sector 2003
Business Today
Best Bank in India -2003
NASSCOM & economictimes.com - IT Users Awards
Best IT User in Banking -2003
London-based Euromoney magazine gave us the award for "Best Bank India" in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank in
India" in 2001 and 2002
We are aware that all these awards are mere milestones in the continuing,
never-ending journey of providing excellent service to our customers. We are
confident, however, that with your feedback and support, we will be able to
maintain and improve our services.
HDFC Bank is headquartered in Mumbai. The Bank at present has an
enviable network of over 684 branches spread over 316 cities across India.
All branches are linked on an online real-time basis. Customers in over 120
locations are also serviced through Telephone Banking. The Bank's
expansion plans take into account the need to have a presence in all major
industrial and commercial centres where its corporate customers are located
as well as the need to build a strong retail customer base for both deposits
and loan products. Being a clearing/settlement bank to various leading stock
exchanges, the Bank has branches in the centres where the NSE/BSE have
a strong and active member base.
The Bank also has a network of about over 1695 networked ATMs across
these cities. Moreover, HDFC Bank's ATM network can be accessed by all
domestic
and
international
Visa/MasterCard,
Visa
Electron/Maestro,
10
The banks total income is estimated at Rs 2,641.7 crore for the quarter
ended June 30, 2007, as against Rs 1,795.2 crore of the corresponding
previous year quarter.
The banks provisions and contingencies for the quarter were Rs 307.1
crore, comprising specific provisions for non-performing assets and general
provision for standard assets of Rs 299.7 crore as against Rs 185.4 crore for
the quarter ended June 30, 2006.
Total balance sheet size as of June 30, 2007, was Rs 105,695 crore, an
increase of 32.6% over June 30, 2006. Banks total deposits were Rs 81,604
crore, 34.6% over Rs 60,630 crore of the previous year quarter. Savings Net
advances at Rs 53,839 crores as of June 30, 2007 were up by 32.7% over
June 30, 2006. Retail loans constituted 57% of the net advances as of June
30, 2007. The banks total customer assets (including advances, corporate
debentures, investments in securitised increased to Rs 45,764 crore in June
30.
DIFFERENT DEPARTMENTS
Middle market
Global Banking
Mutual Funds
Payments
Cash Management
ITSM
Customer service
Trade Service
Home Loan
Personnel Loan
HR
Corporate Sales
Locker
Credit cards
11
INDUSTRY PROFILE
a) Origin and development of the industry
Banking Industry in India has always revolved around the traditional function
of deposits and credit. Their role had been defined as to assist the overall
economic growth with majority of share being controlled by the Government
of India in most of the banks. But with the process of liberalization, and the
technological
revolution
the
banking
industry
has
also
undergone
tremendous change in the last 5 years. The market, which was largely
controlled by the public sector banks, has now been facing stiff competition
not only from foreign players but also from the new generation private sector
banks. The rules of the game have been changing with the RBI introducing
new norms to make banks more accountable and to adopt the practices
followed worldwide.
Most of the banks have now been trying to function on the concept of a
Universal Bank. Apart from the traditional functions of a commercial bank,
they are taking steps to build themselves into a one stop financial centre
wherein all the financial products would be available. Banks have started
catering to the retail segment to improve their deposit portfolio. In order to
have a maximum share in this segment, most of the banks have been
introducing new products. The delivery channels have also been shifted from
branches to ATMs, phone banking, net banking etc.
Banks traditionally involved in working capital financing have started offering
consumer loans and housing loans. Some of the banks have started offering
travel loans as well. Retail financing is the other area where the banks have
started to concentrate. The loan formalities too have been relaxed to a great
extent and sanctioning time has been speeded up.
History of Banking Industry
Banks are the most prominent and very important part of the financial
economy of India. The performance of banks is completely linked to the
growth of the economy while the nature and quantum of growth is in turn
12
linked to the availability of bank credit. banks have been used by successive
governments to achieve their social, political and economic goals. the
structure of the government banking system has undergone numerous
change since independence. two phases of nationalization, introduction of
regional rural banks in 1975 (to focus on rural spread on banking) and
permission to new private banks to set up operations since 1993-94 are
some of the major changes undergone.
Banking Industry in India has always revolved around the traditional function
of deposits and credit. Their role had been defined as to assist the overall
economic growth with majority of share being controlled by the Government
of India in most of the banks. But with the process of liberalization, and the
technological
revolution
the
banking
industry
has
also
undergone
tremendous change in the last 5 years. The market, which was largely
controlled by the public sector banks, has now been facing stiff competition
not only from foreign players but also from the new generation private sector
banks. The rules of the game have been changing with the RBI introducing
new norms to make banks more accountable and to adopt the practices
followed worldwide.
Most of the banks have now been trying to function on the concept of a
Universal Bank. Apart from the traditional functions of a commercial bank,
they are taking steps to build themselves into a one stop financial centre
wherein all the financial products would be available. Banks have started
catering to the retail segment to improve their deposit portfolio. In order to
have a maximum share in this segment, most of the banks have been
introducing new products. The delivery channels have also been shifted from
branches to ATMs, phone banking, net banking etc.
Technology has become an important medium of not only attracting new
customers but also in retaining them. The new generation private sector
banks have made a strong presence in the most lucrative business areas in
the country because of technology upgradation. While, their operating
expenses have been falling as compared to the PSU banks, their efficiency
13
2007
2008
2009
7140
8132
8729
9928
Demand
1174
1273
1266
1347
Time
5966
6859
7463
7498
3688
4358
4667
4779
Food
168
256
320
373
non-food
3520
4102
4347
4399
Investments
2545
3088
3332
3347
govt. sec
2232
2784
3023
3038
313
304
309
314
Cash in hand
43
53
53
57
635
574
631
656
Cash-Deposit ratio
9.50%
7.70%
7.80%
7.80%
Investment-Deposit ratio
35.70%
38%
38.20%
38.20%
Credit-Deposit ratio
51.70%
53.60%
53.50%
53.50%
Total deposits
14
Mergers and Acquisitions have also started playing their role in the banking
industry where lots of players are trying to consolidate their position. The
recent merger of HDFC Bank with Times Bank and ICICI Bank with Bank of
Madura are important steps in this direction. In recent times, most of the new
private sector banks have shown interest in inducting a foreign partner in
their operations.
Most of the banks are also planning to enter the insurance business and are
in the process of identifying their strategic partners. Since most of the banks
already have an extensive distribution network, this new business should
result in substantial revenues. But with most of the top league players
planning to enter this business, the more efficient and pro active players
would be able to take a lead.
c) Future of the industry.
The Indian Banking industry is largely dominated by the public sector banks.
These banks till the early 90s were involved in the traditional banking
business of deposits and credit lending. They performed a supportive role in
the overall growth of the economy. While most of these banks used to focus
on the growth of balance sheet, profitability was not a significant factor in the
competition. In most of the banks, the government has a holding of 100%
whereas in the few banks, the stake has fallen because of a public issue in
the post liberalization period. The government is proposing to bring out a bill
wherein its share in all these banks would stand reduced to 33% from the
current levels.
15
LITERATURE REVIEW
Organisations are made up of people and function through people. Without
people organisations cannot exist. The resources of men, money, materials
and machinery are collected, coordinated and utilized through people. These
resources by themselves cannot fulfill the objectives of an organisation. They
need to be united into a team. It is through the combined efforts of people
that material and monetary resources are effectively utilized for the
attainment of common objectives. Without united human efforts, no
organisation can achieve its goals. All the activities of an organisation are
initiated and completed by the persons who make up the organisation.
Therefore, people are the most significant resource of any organisation. This
resource is called human resource and it is the most important factor of
production. According to L.F. Urwick, "business houses are made or broken
in the long run not by markets or capital, patents or equipment but by men."
Of all the resources manpower is the only resource, which does not
depreciate, with the passage of time.
From the national viewpoint, human resources may be defined as "the
knowledge, skills, creative abilities, talents and aptitudes obtained in the
population." From the viewpoint of an organisation, human resources
represent the people at work. They are the sum-total of the inherent abilities,
acquired knowledge and skills as exemplified in the talents and aptitudes of
its employees. According to Jucius, human resources or human factors refer
to "a whole consisting of inter-related, interdependent and interacting
physiological, psychological, sociological and ethical components."
Thus,
human
resources
represent
the
quantitative
and
qualitative
and
interactions
with
the
environment.
Family
16
(iii)
(iv)
(v)
(vi)
The term human resources is wider than the term personnel. Human
resources include all the dynamic components of all the people at all
levels in the organisation whereas personnel means the employees
working in the organisation.
17
18
19
work.
Areas of Training
Areas of training can be classified into the following categories:
1. Training in company policies and procedures (induction training)
2. Training in particular skills.
3. Training in human relations.
4. Managerial and supervisory training.
5. Apprentice training.
Training in company policies and procedures
This is a part of the induction of a new employee. The objective is to orient
new employees with the set of rules, procedures, management, organization
structure, environment and products, which the firm has and/or deals with.
Orientation is a continuous process aimed at the adjustment of all
employees to new and changing situations. It aims to impart the facts of
company rules and policy, to create attitudes of confidence in the company,
prides in the products, respect for company personnel, and to provide
information about needs and skills, development, quality of production and
work organization.
It also enables employees to get the first impression of the culture of the
firm and the kind of people he will have to deal with. At no time does it allow
for questioning or change of system. It, therefore, in no way contributes to
the organizations growth, nor does it enhance an employees ability to
contribute to the organizations growth. Induction programs are also used for
in-company promotes, who have to be oriented to the demands of their
requirements.
Induction programs are based on the philosophy that the process of initial
adjustment and entry to the organization is a difficult process. Unless a
conducive and supportive atmosphere facilitates it, it would leave the new
entrant with several uncertainties in his mind and make his assimilation in
20
22
Feedback
During the training process, it is useful for the trainee to be told how he is
progressing. The knowledge of results is, several researchers have
confirmed, an effective motivator. Constant and periodic feedback has
positive effects on the trainees learning. Unless the trainee knows how close
his performance comes to the desired standard, he will not have an
opportunity to improve. Feedback, therefore, provides a basis for correcting
oneself. Secondly, feedback helps to sustain the trainees interest in the
task, or in the learning that is taking place, by bringing greater involvement
with the learning process. If feedback is to be meaningful, it should follow a
learning segment as quickly as possible.
Transfer of Training
The maximum use of training can be made if the trainee is able to transfer
his learning to his actual work role. This is possible if elements are
incorporated in the training situation from the job role, either existing or
proposed. The more similar the learning situation is to the job situation, the
higher the degree of transfer the trainee can expect, and hence the greater
the relevance of the training programme.
Repetition
Repetition etches a pattern into our memory, e.g., when one studies for an
examination, it is necessary to repeatedly go over ideas so that they can be
recalled later.
Relevance
Relevance relates to the meaningful use of material, which aids learning,
e.g., trainers usually explain in the overall purpose of a job to trainees before
assigning them a particular task.
Training Policy
A company's training policy represents the commitment of its top
management to training, and is expressed in the rules and procedures that
23
Training helps employees to learn their jobs and attain desired levels of
performance speedily thus cutting costs and contributing to better
utilization of machines and materials, for example in workers' categories.
Training Methods
Training methods are a means of attaining the desired objective in a learning
situation. Given background work such as identification of training needs, a
programme design and its duration (based on these needs), it then becomes
pertinent to analyze and select the best method or combination of methods,
given the several constraints, to attain the programme objective. The choice
of a method several constraints, to attain the programme objective. The
choice of a method would depend on a wide variety of factors, such as
competence of instructors, relevance to the participants, the programme
design, i.e., is a particular method the best vehicle to put across the
contents, and finally its cost implications.
Numerous training methodologies and techniques have been developed
over the years to meet certain specific needs. Each method has structured
procedures for conduct that offer certain advantages in developing certain
limited facets of a trainee, and suffer from some limitations.
In using a particular method, one should know its strengths and
weaknesses, given the situation, and analyze its relevance, its purpose, and
if it is useful, how to get the most out of it. This would provide the rationale of
the various training methods. The trainer should know the rationale of each
of the methods before attempting to use any of them.
Objectives of Training Methods
Training methods have a number of overlapping objectives. As stated earlier,
they have to be chosen in relation to the programme design requirements.
The main objectives of individual training methods could be: demonstration
value, developing interest and finally, appeal to senses. However, more than
one, or even all three objectives may be found in one method.
25
Demonstration Value
Complete demonstration of job requirements is training of a kind that
enables the trainee to grasp the meaning of ideas, concepts, or procedures
visually. Such a method can be used effectively as an aid to overcome the
"breakdown of communication". People remember things that they see and
hear, much longer than they do information they receive through talks or
reading, alone.
Developing Interest
One of the factors to be kept in mind in choosing a method is its ability to
hold and arouse the interest of the trainee in the learning situation. Much
research has been done in the field to test the effectiveness of various
methods. A trainer has to consider alternative methods of presenting training
material to participants in order to stimulate their interest and facilitate
retention of the matter. For instance, if traditionally the matter has been
presented through lectures, perhaps audiovisual methods could be used, or
instead project work be assigned which would mean learning by doing or
researching the subject oneself.
Appeal to Many Senses
The statement that "to see a thing once is better than to hear it a hundred
times emphasizes the inadequacy of words as a means of communication.
Experience indicates that almost 75 per cent of what we imbibe is through
the sense of sight and the rest is through the sense of hearing, touch, smell
and taste. From the trainer's point of view it would be beneficial to utilize as
many of the trainee's senses as possible, in order to improve retention of
learning.
Application of these basic objectives or guidelines alone would not be
enough. For the appropriate use of a method, problem analysis and needs
identification are also necessary.
The trainer has to understand and identify the problem area; what is wrong,
and where is the correction needed? He has to examine whether there is a
26
problem with the manner in which the task is done, i.e., an operational
problem, or whether there is a problem with an individual or individuals, i.e.,
a human-relations problem.
Secondly, selecting the appropriate method would be dependent on the level
of the trainee in an organizations' hierarchy-is he a shop floor worker,
supervisor or a manager?
Finally, before selecting a training method, the trainer should keep the mind
cost effectiveness.
Classification of Methods
Depending on the learning outcome, and the process by which it is attained,
it is possible to categorize the various methods into several groups.
On-the-job-oriented Training Methods
In this cluster are included methods whose main objective is centered
around the job, more specifically, learning on the job itself by a variety of
methods. They embrace development through performance on the job,
where organizational strength and constraints, human behavior and
technological systems have full and free play. Methods, which fall into this
category, are:
1. On-the-job training.
2. Job rotation.
3. Guidance and counseling.
4. Brainstorming sessions.
5. Syndicate method (working in small groups).
Simulation Methods
Real-life situations are simulated for imparting training. The methods falling
in this category are:
1. Role-play.
2. Case method.
27
3. Management games.
4. In-basket exercise.
Role Play
The role-play method requires participants to enact roles on the basis of a
written script or an oral description of a particular situation. The enactment
process provides an insight and understanding of the demands and
situations of the assigned role, thereby facilitating empathy with another's
(actual) role. The main emphasis in management training is in facilitating
better understanding of interpersonal problems, and attitude change. If not
handled well, however, it could degenerate a childish exercise, where,
instead of focusing on the problem to be understood, the situation might be
over-dramatized.
Case Method
The case is an actual situation, which is written for discussion purposes.
Analysis would need problem identification, analysis of the situation and of
its causes. There could be several solutions to the problem, and each of
these alternatives and their implications needs to be examined. In the real
world, on many occasions, a manager may not have all the relevant
information with him before taking a decision. Similarly, the case method
approximates this reality and in many situations decisions are taken with
limited data, or what is termed decision-making under uncertainty. The
managerial response in such a situation is explored and understood and
learning consists of developing problem-solving skills.
Management Games
The game is built around the model of a business situation and trainees are
divided into teams representing the management of competing companies.
They simulate the real-life process of taking operation decisions. Decisions
taken are analyzed by a computer, or manually, and a series of the
implications of these decisions are fed back. The game is played in several
rounds to take the time dimensions into account.
28
In-basket exercise
This is a simulation training technique designed around the "incoming mail"
of a manager. A variety of situations are presented which would usually be
dealt with by an executive in his working day. His reactions and responses
are taken down in writing and then analyzed. Feedback on his decisions
forces him to re-consider not only his administrative actions but also his
behavioral style.
Knowledge-based methods
In this method of training, an effort is made to expose participants to
concepts and theories, basic principles, and pure and applied knowledge in
any subject area. Basically, it is aimed at creating an awareness of the
knowledge of fundamentals. The focus is essentially transmission of
knowledge which has to be imbibed by the participants. The methods in this
category are:
1. Lectures.
2. Seminars, workshops.
3. Educational training programmes at academic institutes.
4. Programmed instruction in which knowledge is disseminated in book
form to be learnt at the individual's pace, and where feedback on the
learning is a given aspect of the method.
5. Films and TV.
6. Group discussion, especially in combination with some of the above, for
assimilation and integration.
Training Organization
There are several administrative aspects that have to be taken into account
before launching in-house training programme, or nominating participants to
external programmes.
29
In-Company/External Programmes
The company needs to formulate its thinking regarding participation in
programmes offered by external agencies like educational management
institutes, government institutions and consultant programmes, vis--vis
conducting its own in-house programmes. Where employee numbers are
small, it may not be worthwhile to set up a training establishment and
conduct in-house programmes, but as the numbers increase, this options
may offer a distinct possibility. There is the cost aspect to be considered: for
the cost of sending a participant to an external programme, several
employees could be trained within an organization. Yet, the advantage of an
external programme would be a breath of fresh air through discussions with
other participants and a fresh approach could be brought into the
organization and its problems. The skills and techniques learnt might also be
different from those offered by one's own in-house programmes.
Training Budgets
A training budget for each internal programme has to be prepared, which
would include cost of facilities like training room, food, transport, guest
faculty, if any, and cost of teaching materials. In fact, the cost to the
organization should also include the wages and salaries of employee
participants who would be temporarily pulled out of their regular jobs and
sent for training. Yet, organizational requirements would necessitate their
jobs being done by someone else. The reason for costing the trainee
employee's salary would be that they would not be making any contribution
to the company during the training period, and that this is an additional
burden on the company's finances.
Evaluation of Training
Evaluation of any activity is important, since in evaluating one tries to judge
the "value or worth of the activity, using the information available".
What is the purpose of evaluation? Evaluation, by bringing to the fore
"weaknesses and failuresstrengths and successes," helps to improve
30
Reactions from trainees about the training programme can help identify its
strengths and weaknesses. These reactions can be used as a base for the
improvement of programmes, but those evaluating must first be definite
about the aspects they are interested in investigating.
An evaluation of a training method or system must also take into account the
suitability of objectives. "If the objectives were inadequately formulated in the
first place, even a 'good' training programme has really no chance to be
effective."
Objectives have to be clear-cut, must relate to needs, and make way for
changes. Objectives cannot be static and need to be re-appraised frequently
so that training may result in improved overall organizational efficiency.
Evaluation of objectives helps to bridge the gap between needs and
objectives.
The Evaluation Process
The most useful means of evaluating training are observations, ratings,
trainee surveys and trainee interviews. Observation is concerned with
observing the behavior of people in a certain situation. To be useful, it must
be specific, systematic, quantitative, recorded and expert. Needless to say,
observers, must be trained and have specific ideas about what they are
31
looking for. This is the most direct method of "assessing the quality of formal
training and of identifying deficiencies".
The second method of evaluation is that of ratings. "Various elements of the
training system should be rated independently by several qualified raters.
These elements include trainees, instructors, equipment, materials, training
aids and facilities." The use of rating scales requires supervised practice, as
it is easy to commit errors.
The third method is trainee surveys where opinions of the trainees are used
for evaluation. These opinions should not be used independently, since they
cannot always be relied on to be objective.
The fourth method is trainee interviews, whereby ideas and views that
trainees might not put down on paper can be determined by "skilful
questioning". This method allows for more precise information and details to
be obtained and prevents ambiguity, especially in interpretation.
The final method is that of collecting the observations and recommendations
of instructors through surveys and interviews "to ensure that the system is
consistent with the needs of the implementers of the training". Interviews
with instructors will bring to the surface characteristics that instructors may
feel reluctant to put down on paper.
Is Training The Best Medicine?
Imagine this: A man is having chest pains. He rush as to his doctor, tells him
he is having a heart attack, and demands that he perform open-heart
surgery. He obligingly agrees. It is not until after a great deal of pain and
expense that he discovers it was only in digestion.
When it comes to training, a similar situation happens all the time. If scrap
rates are too high, productivity is too low, and employees neglect to follow
standard quality procedures, they must need more training. Before rushing
into the pain and expense of interrupting production to send them off to a
seminar it is necessary to make sure that training is the proper solution.
32
Casual conversations
Formal interviews
Direct observation
Work samples
Written records
Surveys
Tests
Focus groups
A professional trainer can be hired to perform an analysis but its not just a
technique for trainers. Everybody should be trained in this simple process.
Its a supervisors or a managers job to make sure people can do their jobs.
To do training needs analysis the following steps should be followed:
Study current performance: Before tying to change anything, its essential
to know what is already happening. What skills and knowledge do
employees already have? What tasks are they performing on their daily
jobs?
33
34
35
new knowledge
and
skills as job
responsibilities, products,
Employees Actual
Level
Employee
Training
36
Employee
Development
37
Distance learning,
Computer-based training,
On-the-job training,
External courses,
Large-scale workshops,
Attendance at seminars,
Attending conferences,
Evening classes,
Further education,
Assignments,
Some of the above activities, such as classroom training and computerbased training, would always be considered as training. Activities such as
exhibitions, conferences, assignments and reading would not usually be
classified as training.
Clearly on-the-job training should be considered as training, but surely not all
of the time spent under supervision should qualify for the employees hours
of training. The conclusion we came to was that the time spent on producing
usable output should not be included in the training time.
In Europe and the United States, participating in quality circles would
probably not be considered to be training because the prime purpose of a
quality circle is thought to be solving the companys problems. Any learning
that comes about would be though to be secondary. In fact, this is another
38
39
40
Select trainers
Select trainers
Identify location and
resources
Finalize budget
Finalize training
plan
Select trainers
Pre-course admin
Prepare course
Deliver Course
Validate training
Post-course admin
Transfer learning
Evaluate training
Revise course
41
Select courses
Needs
Training
Skills
and
knowl
edge
42
THE BUSINESS
Training
Customer
Requirements
Assessment
Actions
Busine
ss
strateg
y
Organizational
learning
Individual
learning
Business Process
Training
Organisation
Development
Education
Experience
43
Training Strategies
The training process is a cycle that you need to manager continuously. You
respond to needs. You ensure that the training is aligned with the business.
The cycle time is short term-usually no longer than a year. Managing the
training process is essentially operational or tactical.
If we always manage training at this level we are in danger of being reactive
rather than proactive: starting and stopping training programmes or perhaps
even failing to deliver anything.
We need to have a clear idea of how we are going to deliver training over a
longer period. Training needs analysis and training policies provide the what
and the how much. A training strategy provides the long-term orientation.
To put a training strategy together you should have a vision of what training
in your organisation should look like in, say, five years. You should then map
out the years and the key milestones along the way. When you are putting a
training strategy together you should ask yourself the following questions:
Every time you cycle through the training process you should re-examine
your training strategy to see if it still holds up in the light of new training
44
identify needs,
Evaluate needs.
Identifying training needs is the starting point for managing the training
process. Yet this is often one of the last steps to be considered seriously
probably because a proper needs analysis is both difficult and time
consuming.
Initially, it might be quicker and easier to forget about analyzing the needs
and have your customers pick and choose from a catalogue, but this will
ultimately lead to frustration and inefficiency.
Identifying training needs is not just a matter of finding the need and them
simply satisfying it. There are often conflicting requirements from different
interests within the company. The development needs of the individual have
to organisation. These needs, once identified, have to be matched to
appropriate training courses.
Sometimes there is a feeling that training will always be the solution for
every identified development problem. However, there is not point in
providing training if training is not an appropriate solution. When this is the
case the training manager has to be brave enough to say that it is not
appropriate and creative enough to suggest alternative solutions.
45
NEEDS IDENTIFICATION
Needs identification has to balance corporate demands, policies and
strategies as well as individual and organisational requirements. Figure
outlines a process that balances these requirements. It shows that corporate
policies and strategies should be the umbrella under which individual and
organisational training needs are identified. This helps to ensure alignment
of training activities with the business direction.
Collect corporate policies and strategies
Corporate policies and strategies form the boundaries within which all
training and development activities should take place.
There are two ways in which corporate policies and strategies give rise to
training needs. The first is directly through mandatory training. The other way
is through indirect influence. When an organisation outs its training plan
together it should take account of both the business plan and individual
development needs. This is where the process often breaks down and even
the indirect influences start to disappear.
Policy deployment which is a structured method of Cascading corporate
goals and strategies through the company is a powerful method of ensuring
that training needs are identified within the context of the company s
business goals
We discussed the importance of alignment and of getting the corporate basic
right. If this has been done well, you will have no difficulty in collecting
corporate policies and strategies. You will then be able to prepare a training
plan that supports the direction of the business.
46
Identify
departmental
needs and skills
for each job
Identify
mandatory
training
equal opportunities,
empowerment,
harassment,
47
financial responsibility,
they
have
been
developed
centrally
for
company-wide
implementation.
Identify business needs
Policy deployment and the training forum are two essential tools for
identifying business needs. Policy deployment and the training forums role
in defining the basics of the training process are both covered.
Policy deployment is the process by which a companys strategies are
communicated to its organisations. An organisation then determines what it
need to achieve by understanding its part in the company' strategy. The
what should be measurable and take the form of goals or objectives.
Once an organisation has determined what it has to achieve, it then has to
decide how these objective will be met. Once the how has been identified it
is possible to determine the skills and knowledge the organisation will
require.
The training forums role at this stage of the process is to:
ensure that training plans are aligned with the companys direction,
The training forum comprises training managers and other interested parties
who meet to discuss training plans. They also identify opportunities for
sharing resources. A forum is particularly useful when there are several,
dispersed training departments within a company.
The forum would normally need to meet twice a year: the first time to
understand both corporate requirements and local issues; the second
48
meeting to review draft training plans. Figure shows typical timings for the
two training forum meetings.
MAY
Overall
Requirements
Departmental
FORUM
MEETING
(Preplanning)
JULY/AUGUST
Departmental training
plans prepared
OCTOBER
FORUM
MEETING
(Plan
review)
Training plan
prepared
Requirement
s
49
request copies of the current development plan when the needs analysis has
to be done.
Identify departmental needs
So far we have seen how training departments can be aligned with each
other and with the corporate business direction. We have also seen how
individual development requirements can be identified. We now need to see
how the detailed departmental training needs are identified.
The processes already described should ensure that the department's
raining demands are based on corporate or company business needs and
requirements. The individuals requirements give us a picture of the demand
within a department but not necessarily the need. in fact, the process for
identifying departmental needs is very similar to the process for identifying
need at the corporate level. Each department should assess where it is. The
department should have a vision, a mission and a strategy for realizing the
vision.
Identify skills and training required for each job
The department's mission, and the work processes the company uses,
determine the jobs the department needs to produce its products and
services. Each job has an associated set of skills. New jobs required new
skills.
In its simplest form, identifying the training required for each job involves:
1. Identifying the skills required to do a job.
2. Comparing the required skills to the current skills level of the people who
will be doing the job.
It is training's function to bridge the gap between current and required skills.
The skills and knowledge required for every job should be documented. You
should also document the courses that a representative person will need to
reach the required skills level. This makes it easier to select the correct
50
51
52
Needs evaluation
All training requests need to be validated to ensure the training is both
appropriate and necessary. The amount of effort and time required to
validate the training requirements depends on the quality of the input
received. The best time to evaluate training needs is when the needs are
being identified. This is why it is worth spending the time to run development
open days and to train managers in development needs analysis. In an ideal
situation the training administrators should only need to perform a quick
request.
FIG:- PROCESS OF EVALUATING TRAINING NEEDS
Check individuals have not previously been trained
53
Counseling
Counseling is a critical skill for managers and it is especially important when
training needs are being identified. The steps in the counseling process are:
1. Set climate.
2. Set expectations.
3. Seek counselees views of strengths and weaknesses.
4. Agree a development plan.
5. Summarize.
Although the process there describes a training manager counseling a
trainer, the techniques are just as applicable to appraisal and development
discussions.
Prepare a draft training Plan
When you have validated the training requirements you are in a position to
put a draft training plan together. This should include estimates of:
54
The impact on the organization is a little more subtle. Try asking yourself the
following questions to help you understand the impact:
How many people can you afford to have absent from one department at
the same time?
What other claims are there on the budget you need to deliver the
training plan?
55
56
challenge
of
globalization,
technological
innovation
increasing
57
58
RESERCH METHODOLOGY
The information required for this project study is collected both through the
primary as well as secondary source of data.
Tools for Data Collection
Primary sources of data
Questionnaire
Questionnaire method for primary data collection is being used to collect
information that is relevant for the objectives of the study.
The questionnaire is mix of both open as well as close-ended questions and
questionnaire consist of 9 questions.
Basis of Questionnaire
The questionnaire is made on the basis of the following parameters. These
are:
Interview
59
In depth interview with the employees who are unable to work on the
questionnaire and the training manager will be conducted in order to know
about the training practices being followed at the HDFC Bank.
Sample Size
30 Employees of HDFC Bank
Data Analyis - Statistical Tools to be used
i)
ii)
Histograms
There may be biases on the part of the Managers and Staff while
providing the information. This is not directly affect the study but it has
some impact on the conclusions.
All efforts are made to get all the relevant information's required for this
study and presented in this project.
60
It Future
Requirement
Different
I. New Recruits:
New
recruits
go -samethrough
an
Induction
programme
System
if should
provide
Linkage
from
Recr.
Module
Introduction
routing to be
provided by the
system
Recording
of
Induction
programmes
and attendees
Recording
of
Training Details
for
each
attendee
Drawing
up
Introduction list
from
recruitment
module
Recording
of
Introduction
and attendees
Recording
of
Training Details
for
each
attendee
HDFC
Bank
Give
Sample
Programme
schedule
Position
chart
Recording
Format
Recording
Format
Recording
Format
Recording
Format
Sample
Training
Needs
Sample
61
to
Training
Needs
Appraisal
Format ISO
System
to Formats
provide
data
Appraisal Training
from previous
Needs Analysis
cycle
training
The appraiser at the The
appraiser need identified
end of the appraisal should complete and
training
session, completes
programmes
the Identification of
attended,
Training
Needs
form.
HoD collects and The ISO form, Action
plan
sends these forms which
could generated,
to Corp. HR
replace
the completed and
Corp. HR copies Identification of rated
each form onto an Training Needs
ISO
format
and Form
sends it back to the
appraiser
for
signatures
Format for
Appraiser sends it -samecollation
back to Corp. HR
Automatic
Format for
duly signed
-samecollation needs deciding on
Corp. HR collates
and
planning batches
and
sorts
the
out of training (e.g.
Not
training needs.
batches
for more than
each subjects
x number
from
a
location,
grouped by
grades/loca
tions etc.)
Calendar
format
Nomination
To be done by Nomination list Nomination
HR
decides
on HoD, based on to be generated format
62
nomination
of
employees
across
the company for
Training
Programmes, based
on training needs
generated in the
appraisal.
HR
sends
the
nominees names to
respective
HoDs
and
letters
to
nominees
Training Session
Training programme
Held
Feedback
from
Trainee obtained
Action plan follow
through
after
3
months
Following
records
updated:
Training Record
Training Card
training calendar
and
list
of
persons
with
similar
needs,
both
to
be
provided by HR
by
system
highlighting
training
completed
against budget,
past
year
training data.
HR to send
nomination
letters,
addressed to
employee, to
handed over
the HoD.
Sample
System
to Letter
generate letter
the
the
be
by
-same-same-same-
Complication of
feedback
Average
feedback
scores
of
faculty, faculty
record updation
system trigger
and mails to be
sent out
Snapshot
history to be
stored??
-same-same-same-same-
Generation
of Number
of System
Training
Reports training
days generate
Does not exist at attended
by reports
present
given employee
against
given
budget:
Of 2 days per
employee
in
plants
7
days
per
employee in Mkt.
2
days
per
employee
in
Corp.
63
Feedback
format
Action
plant
format
Action plan
follow
through
format
Training
record
format
Training
Card
format
to Report
all format
to
be provided
Number
of
training
days
completed
by
give
unit/location/dep
artment/group
against budget.
Number
of
training
days
completed
by
company as a
whole
against
budget.
Parallel Processes -same1. Vendor Selection
The
vendor
for -sametraining programes
can be either a
company
or
a
faculty member.
In
case
of
a -samecompany, the
Concerned faculty
members profile is
sought
In all cases faculty -sameis first given a pilot
programme
If average rating in Faculty card and
feedback sheet is faculty record to
4.2 or avove for be
created,
normal programmes similar
to
(or3.5
for Training
card
confrontational, lab and
training
type programmes), record.
faculty is finalised.
Parallel Process
-sane2. Internal Faculty
(Trainer) Selection
There is a Train the -sameTrainer programme
which results in a
certification process
at the end, for all
internal faculty
64
System
to Profile
crosscheck
format
Profile against
template??
Initiate
and 2 Formats
maintain
company
and
faculty record
Maintain
Certificatio
records
of n format
internal trainers
and
prompt/suggest
names
while
compiling
programme
batches
The goals of HRD system at HDFC Bank are realized through various sub
systems practiced on the company. They are as follows:
Performance appraisal
Suggestion scheme
Training
Awards
Employee participation
Communication policies
65
To prepare employees the job meant for them while on first application,
on transfer or on promotion and impact to them, the required skills and
knowledge.
66
External programs
Overseas programs
Training of trainees
Apprentrenship training
TRAINING POLICY
Formulation of training policy.
TRAINING AND DEVELOPMENT FUNCTION
Responsibility of Training and development.
67
12
10
8
6
4
2
0
Less than 5 years
6-7 Years
68
Q.2. DESIGNATION
30
No. of employees
25
20
15
10
5
0
Senior managerand
above
Senior officer to
assistant manager
Designation
69
12
10
8
6
4
2
0
Less than 5 years
6-7 Years
70
35-45 Years
71
Morethan 45
Years
Senior
assistant
manager and
manager
above
Upgradation of abilities
Preparing
Develop
for
assignments
future
in
same
position
specific
abilities/
competence
It is seen from the analysis that both the levels of employees think
that upgradation of training and training for allied fields is the least
important.
While senior officers to assistant managers feel that preparing for
transfers is the second most important purpose of training senior
managers
and
above
feel
that
developing
specific
abilities/
72
Senior
officer to
Asstt. Mgr.
74.5%
Senior Mgr.
and above
35.3%
Senior
officer to
Asstt. Mgr.
64.7%
73
TRAINING DEPARTMENT
Senior
officer to
Asstt. Mgr.
40%
Senior Mgr.
and above
60%
73.68% of senior officers to assistant managers felt that training needs are
identified through performance appraisal whereas only 2.6.31% of senior
managers and above felt the same.
66.63% of senior officers to assistant managers felt that discussion
with superiors is a method of identifying training needs whereas
36.36% of senior managers and above felt the same.
40% of senior officer to assistant managers felt that training needs
are identified by the training department and 60% of senior
managers and above felt the same.
Hence a significant difference in perception exists between the two
levels when it comes to identifying training needs.
The analysis also shows that none of the employees at both such
felt that after job rotation was a means of identifying training needs.
74
75
76
77
RECOMMENDATION
1. Training should be given according to the job profile of the
employees. e.g. Managers should be made to attend more of team
oriented workshops since they are required to work in teams. Whereas
an officer level employee needs to enhance his computer skills. Hence
training programmes have to be designed accordingly.
2. Since a few employees felt that the training they had undergone
in the last two years didnt help them at all, a feedback session
should be made mandatory after every training session, in order
to
ascertain
whether
the
above
idea
behind
the
training
than
just
investing
money
on
various
training
78
CONCLUSION
Making the process of identification of training needs and evaluation of
training more effective will enhance the effects of training to the banks in
general and employees in particular.
Whether it is training needs identification evaluation or any other aspects in
training, it requires active support, cooperation and participation of the
functionaries at various levels of the bank including trainees. One of the best
ways to identify the training needs of the employees is to understand the gap
existing in the skills of the employees and introduce the training programmes
to fill these gaps. Needs of the bank should take in to account expansion of
the markets, introduction of new products and services, mergers and
acquisition, novel techniques of marketing and customer service and many
more. As no single evaluation technique is foolproof, banks could imbibe the
evaluation of training programmes depending upon their availability of
resources and areas of business. If the banks use these two important
formulae, namely, training needs identification and training evaluation
productively and creatively then the banks have the reason to feel confident
of it and they have a factual corroborative to answer management regarding
the positive results produced by employee training and development.
79
analysis
has
depicted
what
common
training
and
80
BIBLIOGRAPHY
Books
V. S. P. Rao, Human Resource Management.
Rolf Lynton & Uday Parekh, Training Strategy.
Martyn & Solemn, Training Strategy.
Francis & Bee Roland, Training Needs Analysis and Evaluation,
University Press.
Valarie A. Zeithamal & Mary Jo Bitner, Services Marketing Integrating
Customer Focus Across the Firm. Tata McGraw- Hill Edition.
Websites
www.bluestar.com
www.goole.com
www.altavista.com
81
ANNEXURES
82
are
established
regarding
various
functions
of
personnel
(b)
(c) Reservation
of
seats
for
scheduled
castes,
scheduled
tribes,
(e)
Probation period
(h)
(b)
Objectives of training
83
(d)
Basis of training
(e)
Rationale of transfer
(b)
Periodicity of transfer
(e)
Channels of promotion
4. Compensation
(a)
(b)
(e)
(h)
5. Working conditions
(a)
working hours
(b)
84
(d)
Shift work
(e)
(b)
Handling of grievances.
(b)
(e)
85
SAMPLE QUESTIONNAIRE
Q.1. How many years are you working with HDFC Bank?
Less than 5 years
6-7 year
26-34 years
35-45 years
competence
Q.6. IDENTIFICATION OF TRAINING NEEDS
Performance Appraisal
Senior Manager and above
Training Department
Senior Manager and above
87