A

PROJECT REPORT 

ON

‘’THE IMPACT OF TRAINING AND DEVELOPMENT ON

EMPLOYEES PERFORMANCE IN AN ORGANIZATION’’

EQUITAS SMALL FINANCE BANK

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

DEGREE OF BACHELOR OF COMMERCE WITH HONOURS

BATCH: 2017-2020

SUBMITTED TO: SUBMITTEDBY:

ASHISH CHANWAL

COMMERCE DEPARTMENT BBA 6 SEM

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 ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the success of any
venture. In the present world of competition and success understanding of theoretical and
practical working makes you aware about the real Business; willingly I prepared this particular
project.

I would like to thank my faculty …………………… to give me the opportunity to do this

project. Although I have tried to express my gratitude to every person who contributed to my
project work, there may still someone hiding veils of unknown whom I may not have been able
to recognize. I would like to thank all of them who had worked for me without my knowledge.

Thanking You

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 SUMMARY

Employees are the heart of any organization. Training and development programs are designed
according to the requirements of the organization, the type and skills of employees being trained.
Training and development programs are designed according to the requirements of the organization,
the type and skills of employees being trained.

In this report we have analyzed the impact of training and development in the working style and
working capacity of the employees and also its impact on the overall organization.

The data has been collected from primary and secondary sources. For the purpose of primary
data questionnaire and direct interview method had been used and Internet, textbooks, magazines
and other sites of the bank were used as secondary data. The final result after the data analysis
and interpretation was that Maximum numbers of people are satisfied with the training and
development methods prevailing in the organization. The aim of this study is to investigate
whether training and development has an impact on employee motivation.

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CONTENT PAGE NO.

Chapter 1

1.1 Introduction 6

1.2 Objective of the study 12

1.3 Research methodology 13

1.4 Limitations 15

Chapter 2

2.1 About the Company 18

Chapter 3

3.1 About the topic 22

Chapter 4

4.1 Data analysis and interpretation 48

4.2 Findings 53

4.3 Conclusion 54

4.4 Bibliography 55

4.5 Annexure 56

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Chapter-01

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 INTRODUCTION
Training and Development is one of the main functions of the human resource management
department. Training refers to a systematic setup where employees are instructed and taught matters
of technical knowledge related to their jobs. It focuses on teaching employees how to use particular
machines or how to do specific tasks to increase efficiency.

Whereas, Development refers to the overall holistic and educational growth and maturity of people
in managerial positions. The process of development is in relation to insights, attitudes, adaptability,
leadership and human relations.

It’s part of performance management system in the workplace. Which is carried out when the
technology changes in the market or new strategies are implemented or change in resources or
manpower or when new software or hardware are used in the projects in these cases the
employer must need to provide the training to the employees so that they can learn and
implement the same in the projects. This improves the individual skills and increases the
performance level of an organization.

In training and development process the employees don’t concentrate much on projects in order
to attend the training sessions. That may delay the deadline for the projects. Despite this fact, a
large organization employer doesn’t feel for that, because as employees get highly skilled the
process would be much faster and they can be competitive in the market. With lack of skilled
employees, the process and strategies utilized will make the overall process slow and the quality
may also get affected.

 What are the primary reasons for training in an organization?

 Increased productivity and adherence to quality standards

 Increasing organizational stability and flexibility
 Reduced supervision and direction
 Economical use of resources & Heightened morale

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 Increase in productivity & Better industrial relations
 Role & career flexibility & Reduced learning time
 Future manpower needs
 Reduced accidents at workplace
 Globalization & speed of change
 New appraisal techniques
 Reduction of errors & accidents
 Reduction of turnover and absenteeism.

 What are the effects of ongoing training on the organization?

 It helps the employee to feel confident in delivering from their end, even
when technology changes.
 It helps the employees to actively respond to the changes that created out of
organizational restructuring.
 Work to facilitate career development.
 Provide the employees with an ability to respond to changes occurred due to diversity in
the manpower.
 Help to meet your employee’s need for continued growth.

 What are the Goals of Training & Development?

 Improve team morale, confidence and hone the skills

 Improve human relations
 Improve organization efficiency
 Reduce monitoring needs
 Improves the organizational viability, scalability, and flexibility.

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 Training and Development Programs

Training and development programs are designed according to the requirements of the organization,
the type and skills of employees being trained, the end goals of the training and the job profile of the
employees. These programs are generally classified into two types:

(i) on the job programs, and

(ii) off the job programs

Different training is given to employees at different levels. The following training methods are used
For the training of skilled workers and operators-Specific job training programmes, Technical
training at a training with live demos, Internship training, Training via the process of rotation of
job.

Training given to people in a supervisory or managerial capacity is – Lectures, Group Discussions,

Case studies, Role-playing, Conferences etc.

People in managerial programs are given this type of training- Management Games to develop
decision making, Programs to identify potential executives, Sensitivity training to understand and
influence employee behavior, Simulation and role-playing, Programs for improving
communication, human relations and managerial skills.

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 Other Training Programs

Technical Training – Technical training is that type of training that is aimed at teaching
employees how a particular technology or a machine.

Quality Training – Quality training is usually performed in companies who physically produce a
product. Quality training teaches employees to identify faulty products and only allow perfect
products to go out to the markets.

Skills Training – Skills training refers to training given to employees so as to perform their
particular jobs. For e.g. A receptionist would be specifically taught to answer calls and handle the
answering machine.

Soft Skills – Soft skills training includes personality development, being welcoming and friendly to
clients, building rapport, training on sexual harassment etc.

Professional Training – Professional Training is done for jobs that have constantly changing and
evolving work like the field of medicine and research. People working in these sectors have to be
regularly updated on matters of the industry.

Team Training – Team training establishes a level of trust and synchronicity between team
members for increased efficiency.

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 Benefits of Training

1. Training improves the quantity and quality of the workforce. It increases the skills and
knowledge base of the employees.

2. It improves upon the time and money required to reach the company’s goals. For e.g.
Trained salesmen achieve and exceed their targets faster than inexperienced and untrained
salesmen.

3. Training helps to identify the highly skilled and talented employees and the company can
give them jobs of higher responsibilities.

4. Trained employees are highly efficient in comparison to untrained ones.

5. Reduces the need to constantly supervise and overlook the employees.

6. Improves job satisfaction and thus boosts morale.

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 Benefits of Development

1. Exposes executives to the latest techniques and trends in their professional fields.

2. Ensures that the company has an adequate number of managers with knowledge and skill
at any given point.

3. Helps in the long-term growth and survival of the company.

4. Creates an effective team of managers who can handle the company issues without fail.

5. Ensures that the employees utilize their managerial and leadership skills in particular to
the fullest.

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 OBJECTIVE

The following objectives of the study are:

 To examine the effectiveness of training in overall development of skills of workforce.

 To examine the difference on the working style of workers before and after training.

 To study the changes in behavioral pattern due to training.

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 RESEARCH METHODOLOGY

According to D. Slessinger and M. Stephenson in the Encyclopedia of social sciences define

research as the manipulation of things, concepts or symbols for the purpose of generalizing to
extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in
the practice of an art´.

1) Primary data:

Meaning: Primary sources of data are the data which needs the personal efforts of collect it and
which are not readily available. Primary source of data are the other type of source through
which the data was collected.

Following are few ways in the data was collected:

i. Questionnaires:

It is the set of questions on a sheet of paper was being given to the of fill it, bases on which the
data was interpreted

2) Secondary data:

Secondary sources are the other important sources through which the data was collected. These
are the readily available sources of the data where one had need not put much effort to collected,
because it is already been collected and part in an elderly manner by some researcher, experts
and special.

The secondary sources helpful for the study were:

1) Text books and articles related to topic were studied.

2) Internet was made use for the collection of the data.

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3) Newspapers were also referred.

4) Magazines were referred.

3) Sample size:

By using convenience sampling technique 100 respondents were selected for the purpose of
the study.

Respondents include the managers, accountants and employees.

4) Research approach:

The survey method was adopted for collected the primary data. Survey research is
systematic gathering of data from respondent through questionnaire.

5) Research instrument:

The data for this research study was collected by survey method guided by questionnaire.

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 LIMITATIONS

 The size is confined to only a limited area.

 There are limited numbers of respondents.
 The time involved in study is short.
 Manager will have to spend excess time on the discipline or may find the replacement of
employee.

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Chapter-02

16
ABOUT THE
COMPANY

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 Introduction of Equitas small finance bank

Mr. PN Vasudevan
(Managing Director & CEO)

Equitas Small Finance Bank is founded in 2007 by Equitas as a Micro finance lender, with
headquarters and with 3 branches in Chennai. After receiving license from the Reserve Bank of
India on 30 June 2016, Equitas began banking operations on 5 September 2016 as a
subsidiary of holding company Equitas Holdings Ltd. With effect from 4 February 2017,
Equitas became a scheduled bank.

The bank planned to build a network of 412 branches located in 11 Indian states by the end of
fiscal year 2016-17 Of these 412 branches, Equitas plans to have 50 percent in South, 30
percent in West and the remaining 20 percent in North. About 25 percent of bank branches
will be located in rural, unbanked villages.

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However, the bank is heavily committed to technology, with 83% of transactions occurring on
line as of July 2017. This includes the bank providing an RFID sticker to pay road tolls
automatically, with settlements occurring digitally
Equitas Small Finance Bank established Equitas Development Initiatives Trust (EDIT) in
2008 to provide social services.

EDIT established Equitas Gurukul Matriculation Schools in 2010. By 2017, the schools were
employing 400 people, and educating 5,700 students primarily from backgrounds that offered
limited opportunities EDIT also has a programme called Equitas Bird's Nest that seeks to help
impoverished pavement dwellers. In March 2018, EDIT celebrated the milestone of improving
the quality of life for 1,300 families in Chennai through this program.

Currently, the bank has advances of about Rs 6,500 crore, of which about 50 percent is
microfinance; about 25 percent is used commercial vehicle finance and the remaining in micro
and small enterprises and affordable housing finance.
PN VASUDEVAN, Managing Director & CEO, Equitas Small Finance Bank Limited, said:
“It is our endeavor to bring a wave of freshness into banking through our focus on making
normal
Banking transaction `Fun’ for the customers and through spreading fun and joy, we hope to
impact about 5 percent of Indian Households by 2050.

To enable physical support to its millions of customers, Equitas plans to have a net work of
Business Correspondents (BC) at branch level taking banking services right to the doorstep of its
clients.

In June 2016, the Madras High Court had approved the amalgamation of Equitas Micro Finance
Limited (EMFL) and Equitas Housing Finance Limited (EHFL), both subsidiaries of Equitas
Holdings, with Equitas Finance Limited (EFL). Following the amalgamation coming into effect,
Equitas Finance Limited was named as Equitas Small Finance Bank.

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Major events and milestones of the Company

 2007

-Incorporation of the Company. 

 2008

-The Company set up EDIT with the objective of furthering social initiatives. 

 2009

-Investment in core banking solution by a license agreement with Temenos Singapore

Pvt. Limited. 

 2010

-Incorporation of Equitas Housing Finance Private Limited as a wholly owned

subsidiary of the Company. 

 2011
-Acquisition of the entire shareholding of V.A.P Finance Limited and Singhivi on
March 21, 2011 and July 7, 2011 respectively, which were registered with the RBI as
non-banking financial institutions. V.A.P Finance Limited was converted into a
private company and a fresh certificate of incorporation was issued by RoC on March
30, 2011. Subsequently the name of V.A.P Finance Private Limited was changed to
Equitas Finance Private Limited. 

 2012

-Demerger of the micro finance business undertaking pursuant to the order by the

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 Madras High Court dated January 11, 2012 approving the Demerger Scheme with
effect from April 1, 2011. The name of the Company was changed to Equitas
Holdings Private Limited. 

-Pursuant to the Company becoming a non-systemically important CIC, the certificate

of registration under 45-IA of the RBI Act, as an NBFC (No. N-07-00768) was
cancelled by the RBI at the request of the Company. 

 2013

-The name of Singhivi Investment & Finance Private Limited was changed to
Equitas Micro Finance Private Limited. 

 2015

-Conversion of the Company into a public limited company and change of name to
Equitas Holdings Limited. 

-In-principle approval for Small Finance Bank pursuant to RBI Letter dated October 7
-Incorporation of Equitas Technologies Private Limited as a wholly owned subsidiary
of the Company.

 2016
-Equitas Holdings commences banking operations in 3 branches.

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Chapter-03

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 ABOUT THE TOPIC

TRAINING AND DEVELOPMENT

The purpose of this study is to assess the effects of training and development on employee
performance in an organization. In the fast pace changing world of business and environmental
uncertainty, organizations realize its limitation of dealing with new challenges and should
therefore invest in training programs to make their employees competent enough to face
uncertainties and take effective decision in time and also remain competitive in the market .
Effective training is beneficial for the firm in variety of ways, such as, it plays a vital role in
building and maintaining capabilities, both on individual and organizational level, and thus
participates in the process of organizational change. Moreover, it enhances the retention capacity
of talented workforce, hence decreasing the unintentional job rotation of the workers.
Furthermore, it indicates the firm’s long-term commitment towards its workers and increases the
employee’s motivational level. All these contributions lead to achieving competitive advantages
and to an enhancement in employee performance and organizational productivity.

Training both physically, socially, intellectually and mentally are very essential in facilitating not
only the level of productivity but also the development of personnel in any organization.
Therefore, training can be put in a contact relevant to public sector administrators. However,
knowledge is the ability, the skill, the understanding, the information, which every individual
requires in order to able to function effectively and perform efficiently.

Training is a systematic development of knowledge, skills and attitudes required by employees to

perform adequately on a given task or job. It can take place in a number of ways, on the job or
off the job; in the organization or outside organization.

 Staff training and development is a work activity that can make a very significant contribution to
the overall effectiveness and profitability of an organization. Therefore, provides a systematic
approach to training which encases the main elements of training. The effectiveness and success
of an organization therefore lies on the people who form and work within the organization.

It follows therefore that the employees in an organization to be able to perform their duties and
make meaningful contributions to the success of the organizational goals need to acquire the

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relevant skills and knowledge. In appreciation of this fact, public sector organizations conduct
training and development programs for different levels of their manpower.

Usually, before training or development programs are organized efforts are being made through
individuals and organizational appraisals to identify the training needs. After the training and
development programs, an evaluation is carried out to ascertain the effectiveness of the program
in line with the need, which had been identified. It is worthy of mention that organization
development follows the development of individual who form the organization. It follows that no
organization becomes effective and efficient until the individual has and apply the required skills
and knowledge. Training has been observed as part of human development. Human development
is a process of enlarging people’s choices. In principle, these choices can be infinite and change
over time. But at all levels of development, the three essential ones are for people to live a long
and healthy life, to acquire knowledge through training, and to have access to resources needed
for a decent standard of living. If these essential choices are not available many other
opportunities remain inaccessible.

The need for improved productivity in organization has become universally accepted and that it
depends on efficient and effective training. It has further become necessary in view of
advancement in modern world to invest in training. Thus, the role played by staff training and
development can no longer be over-emphasized. However, the need for organizations to embark
on staff development program for employees has become obvious. Absence of these programs
often manifest tripartite problems of incompetence, inefficiency and ineffectiveness.

Training and development aim at developing competences such as technical, human, conceptual
and managerial for the furtherance of individual and organization growth, also postulated that the
process of training and development is a continuous one. Man is dynamic in nature, the need to
be current and relevant in all spheres of human endeavor’s make staff development a necessity,
to keep track with current event and methods.

The functions of training as follow: increase productivity, improves the quality of work;
improves skills, knowledge, understanding and attitude; enhance the use of tools and machine;
reduces waste, accidents, turnover, lateness, absenteeism and other overhead costs, eliminates
obsolesce in skills, technologies, methods, products, capital management etc. It brings

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incumbents to that level of performance which needs the performance for the job; enhance the
implementation of new policies and regulations; prepares people for achievement, improves
man-power development and ensures the survival and growth of the enterprise.

The objectives of training are to: provide the skills, knowledge and aptitudes necessary to
undertake required job efficiently develop the workers. Training and development aim at
developing competences such as technical, human, conceptual and managerial for the
furtherance of individual and organization growth. The process of training and development is a
continuous one. The need to perform one’s job efficiently and the need to know how to lead
others are sufficient reasons for training and development and the desire to meet organizations
objectives of higher productivity, makes it absolutely compulsory.

 Training and Development (T&D) is vast and growing. A training and development program -
an essential Human Resource Development (HRD) function of any organization - addresses a
discrepancy between the current performance of the employee and what is expected of him. 
Training refers to a systematic approach to learning and development to improve individual,
team, and organizational effectiveness. Development refers to activities leading to the acquisition
of new knowledge or skills for purposes of personal growth or future jobs and/or roles. Training-
related activities result in improved job performance and other positive changes (e.g., acquisition
of new skills). Training led to greater innovation and tacit skills. Training affects change in
worker skills through a change in trainees’ knowledge structures or mental models. Training may
not only affect declarative or procedural knowledge but also may enhance strategic knowledge
which is defined as knowing when to apply a specific knowledge or skill. Training benefits
employees to perform their jobs in a different culture and/or adjust psychologically to living in
that culture training improves declarative knowledge, planning and task coordination,
collaborative problem solving, and communication in novel team and task environments.

 Training efforts produce improvements in the quality of the labor force, which in turn is one of
the most important contributors to national economic growth. Riding on the benefits as T&D
efforts in many organizations continue to expand and grow, there has been a greater than ever
pressure to show the results of training. It is imperative to focus and to adequately and properly
demonstrate and communicate that training efforts are making worthwhile contributions. As a
result, there is a growing body of conceptual work on measuring the effectiveness of T & D.

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The process of evaluating T&D as “any attempt to obtain information (feedback) on the effects
of a training program, and to assess the value of the training in the light of that information”.

 The purpose of evaluation is to help organizations make decision about future training activities,
and provide tools needed to assess the type of evaluation possible in a given situation, to conduct
the most informative evaluation possible, given the constraints of the situation, and to
communicate to organizational decision makers both the strengths and the limitations of
whatever evaluation data is obtained. That Organization should provide necessary resources to
evaluate the training activity effectiveness while Integrating T&D into the strategic plan of the
firm. They also opine that organizations should establish an information network to facilitate
access to necessary data for before and after measurement.  Training is a learning activity
directed towards the acquisition of specific knowledge and skills for the purpose of an
occupation or task. Training is the planned and systematic modification of behavior through
learning events, activities and programs which results in the participants achieving the levels of
knowledge, skills, competencies and abilities to carry out their work effectively. Training as the
systematic process of altering the behavior and or attitudes of employees in a direction to
increase the achievement of organizational goals. This means for any organization to succeed in
achieving the objectives of its training program, the design and implementation must be planned
and systematic, tailored towards enhancing performance and productivity.

 The purpose of training in the work situation is to develop the abilities of the individual and to
satisfy the current and future of the organization. Most organizations have long recognized the
importance of training to its development. As new technology progresses, making certain jobs
and skills redundant, an increasing emphasis is being placed on the need for a skilled and highly
trained workforce. Many of the jobs being replaced by machines have been of an unskilled and
semi-skilled nature, and this emphasizes the need for higher education and skills for those
wishing to gain employment in the future.  Expressing an understanding of training emphasizes
that training should be developed and operated within an organization by appreciating learning
theories and approaches if the training is to be well understood. It indicated that the success of a
training program depends more on the organization’s ability to identify training needs and the
care with which it prepares the program so that if the trainees do not learn what they are
supposed to learn, the training has not been successful. They further indicated that training

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experts believe that if trainees do not learn, it is probably only because some important learning
principle had been overlooked.

What they are saying is that the success or failure of a training program is frequently related to
the recognition and application of basic psychological principles of learning. This assertion is not
necessarily right. If the trainees do not learn anything then of what benefit will they be for the
organization. If trainees return empty, with nothing to contribute, it can also mean that even
though the organization might have done all that is necessary to ensure a successful training
program, the wrong candidate might have been selected for the training program. Training
therefore can be explained as a planned and systematic effort by management aimed at altering
behavior of employees, in a direction that will achieve organizational goals. A formal training
program is an effort by the employer to provide opportunities for the employee to acquire job-
related skills, attitudes and knowledge. The purpose of training is mainly to improve knowledge
and skills, and to change attitudes or behavior. It is one of the most important potential
motivators which can lead to many possible benefits for both individuals and the organization.
Changing technology requires that employees possess the knowledge, skills and abilities needed
to cope with new processes and production techniques.

Training can achieve:

- High morale - employees who receive training have increased confidence and motivation
- Lower cost of production - training eliminates risks because trained personnel are able to make
better and economic use of material and equipment thereby reducing and avoiding waste
- Lower turnover – training brings a sense of security at the workplace which reduces labor
turnover and absenteeism is avoided
- Change management- training helps to manage change by increasing the understanding and
involvement of employees in the change process and also provides the skills and abilities needed
to adjust to new situations
- Provide recognition, enhanced responsibility and the possibility of increased pay and promotion
- Give a feeling of personal satisfaction and achievement, and broaden opportunities for career
progression.
- Help to improve the availability and quality of staff.

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28
 Difference between Training and Development

Training Development

 Short term process.  Long term process.

 Knowledge and skills for a specific purpose.  For overall development.

 Primary related to technical skills learning.  Related to managerial, behavioral and

attitude development.

 Training is a reactive process to meet current  Development is a reactive to meet future

need. needs.

 From management management-external  From individual himself-internal motivation.

motivation.

 Develops specific job-related skills.  Develops total personality.

 Training is for non-managerial personnel.  Development is for managerial personnel.

Steps to Identify Training Needs

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All training activities must be related to the specific needs of the organization and the individual
employees. A training program should be launched only after the training needs are assessed
clearly and specifically. The effectiveness of a training program can be judged only with the help
of training needs identified in advance. In order to identify training needs, the gap between the
existing and required levels of knowledge, skills performance and aptitudes should be specified.
The problem areas that can be resolved through training should also be identified.
Training need 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, it resources and the
utilization of these resources, in order to achieve stated objectives and its interaction pattern with
environment. The important elements that are closely examined in this connection are:

 Analysis of objectives
this is the study of short term and long-term objectives and the strategies followed at
various levels to meet these objectives.
 Resource utilization
How the various organizational resources (human, physical and financial) are put to use
is the main focus of this study. The contributions of various departments are also
examined by establishing efficiency indices for each unit. This is done to find out
comparative labor costs, whether a unit is undermanned or over-manned.
 Environmental scanning
here the economic, political, socio cultural and technological environment of the
organization is examined.
 Organizational climate analysis
the climate of an organization speaks about the attitudes of members towards work,
company policies, supervisors, etc. Absenteeism, turnover ratios generally reflect the
prevailing employee attitudes. These can be used to find out whether training efforts have
improved the overall climate within the company or not.

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2. Task or role analysis

It is a systemic and detailed analyst of jobs to identify job contents, the knowledge skills 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, the purpose is to decide what should be taught. Questionnaire, interviews
human resource records, reports, tests, observation and other methods can be used to collect
information about jobs in the organization.
3. Manpower Analysis

Here the focus is on the individual in a given job. There are three issues to be resolved:
 It is necessary to decide whether performance of individual is sub-standard and training
is required
 Whether the employees are capable of being trained.
Whether poor performers on the job need to be replaced by those who can do the job.
 Other options to training such as modifications in the job or processes should be looked
into. Personal observation, performance reviews, supervisory reports, diagnostic tests
help in collecting the required information and select particular training options that try to
improve the performance of individual workers.

Advantages of training and development

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 Training and development have a cost attached to it. However, since it is beneficial for
companies in the long run, they ensure employees are trained regularly. Some advantages
are:

1. Helps employees develop new skills and increases their knowledge.

2. Improves efficiency and productivity of the individuals as well as the teams.

3. Proper training and development can remove bottle-necks in operations.

4. New & improved job positions can be created to make the organization leaner.

5. Keeps employees motivated and refreshes their goals, ambitions and contribution levels.

Disadvantages of training and development

Even though there are several advantages, some drawbacks of training and development are
mentioned below:

1. It is an expensive process which includes arranging the correct trainers and engaging
employees for non-revenue activities.

2. There is a risk that after the training and development session, the employee can quit the job.

Methods and technique of Training

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  On-the-Job Training
The On-the-Job Training is a technique wherein the workers, i.e., operative staff, are given the
direct instructions to perform their jobs on the actual work floor.
The workers can learn the skills that are required to be performed in the actual work conditions
and also gets accustomed to the working environment. Also, the organizations need not to bear
any additional cost of setting up a classroom or a simulated setup for imparting training to the
workers, away from the actual work floor, as in the case of off-the -Job training.

On the job training methods:

1. Coaching: 

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 Under this method, the superior or an experienced staff gives instructions to the workers
to perform a job. It is one-to-one training designed for the workers where they can find
answers to their queries through the instructions and demonstrations given by the
superior.

 Advantages
 It is learning by doing.
 Every executive can coach his subordinate even if no executive development programme
exists.
 Periodic feedback and evaluation are a part of coaching.
 It is very useful for orientation of new executives and for developing operative skills. It
involves close interactions between the trained and his boss.

 Disadvantages
 It tends to perpetuate current managerial styles and practices in the organization.
 It requires that the superior is a good teacher and guide.
 The training atmosphere is not free from the worries of daily routine.
 The trainee may not get sufficient time to make mistakes and learn from experience.

1. Mentoring: 
This training is given to the managerial level people, wherein the senior or the manager
gives instructions to the immediate subordinate to carry out the day to day functioning.
It is again a one-to-one training method, where the manager is considered as a mentor to
the subordinate and guides him in the situations of difficulty.

2. Job Rotation: 
Under the job rotation, an employee is often shifted to the other related jobs, with the
intention to make him well versed with other job backgrounds.
This helps him to escape the boredom caused by performing the same kind of work again
and again and also helps in developing a rapport with other people in the organization.

34
 Advantages
 It helps to reduce monotony and boredom by providing variety of work.
 It facilitates inter-departmental cooperation and coordination.
 It infuses new concepts and ideas into elder personnel
 Executives get a chance to move up to higher position by developing them into
generalists.
 Best utilization can be made of each executive’s skills.

 Disadvantages
 Job rotation may cause distribute in established operations
 The trainee executive may find it difficult to adjust himself to frequent moves. He
may feel insecure in the absence of stable interpersonal relationships.
 The new incumbent may introduce ill-conceived and hasty innovations causing
loss to the organization.
 Job rotation may demotivate intelligent and aggressive trainees who seek specific
responsibility in their chosen specialization.
 It may cause class distinction and misunderstanding. Executives who are not
moved may develop defensive reactions.
 It may upset family and home life when transfers are made to different
geographical areas.

3. Job Instructional Training:

 Under this training, a trainer designs a step by step training program, wherein the worker
is given the instructions to perform the job as required. Firstly, the overview of the job
along with the desired results is explained to the trainee, and then the skills required for
the job is demonstrated by the trainer.
Then a worker is allowed to perform the job as per his acquired skills or expertise, and
then finally the workers are asked to give their feedback and ask for any query arising out
of the training program.

4. Understudy: 
35
 Here, the superior gives training to the subordinate as an understudy or an assistant who
is likely to perform a superior’s job in case of the vacancy arising out of superior’s
retirement, transfer, promotion or death.

 Advantages
 The trainee receives continuous guidance from the senior and gets the opportunity to
see the total job.
 It is practical and time saving due to learning by doing.
 The trainee takes interest and shares the superior’s workload.
 The junior and the senior come closer to each other.
 It ensures continuity of management when the superior leaves his position.

 Disadvantages
 It perpetuates the existing managerial practices.
 As one employee is identified in advance as the next occupant of a higher
managerial position, the motivation of other employees in the unit may be
affected.
 The subordinate staff may ignore the understudy and treat him, as an intruder
without clear authority and responsibility.
 Under an overbearing senior, the understudy may lose his freedom of thought and
action.

5. Apprenticeship:
 This type of training is generally given to the people in crafts, trade and technical fields
that require a long-term learning before they actually gain the proficiency in their
respective disciplines.
This training is a blend of classroom and on-the-job training and is conducted under the
close supervision. This can be extended up to 3 to 4 years as apprentices need to go
through the learning process till they become an expert in their fields.
E.g. the craftsmen job, mechanic, electrician, plumber, tool maker, etc. have to undergo
this type of training.

36
 On-the-Job training is based on the principle of “learning by doing”, i.e. the workers
learn the job while performing it within the actual work environment. This type of
training is beneficial for both the workers and the organization.

 Off-the-Job Training

The Off-the-Job Training is the training method wherein the workers/employees learn their job
roles away from the actual work floor .Simply, off-the-job training comprises of a place
specifically allotted for the training purpose that may be near to the actual workplace, where the
workers are required to learn the skills and get well equipped with the tools and techniques that
are to be used at the actual work floor.

Off-the-Job Training Methods

1. Special lectures: 

37
 This is also called as classroom training wherein the employees are given lectures about the job
requirements and the necessary skills required for implementing the job.

There is generally a classroom or a workshop wherein the complete job knowledge is given to
the workers by the experts or specialists from the professional institutes.The main purpose of this
training is to make the employees well informed about their job roles and discussing their queries
arising out of the lectures.

 Advantages
i. It is an easy, simple and quick method to share information with a large chunk of
trainees.
ii. It is usually an economical method as the cost of training is distributed among several
trainees, thereby reducing the cost per trainee.

 Disadvantages
i. It is predominantly a one-way mode of communication with little scope for
interactions.
ii. Personalized and individual-specific flexible training is missing.
iii. It may not be ideal for highly technical and skill-oriented jobs.
iv. Problems like the trainer’s fatigue, the non-availability of experienced trainers, and
the dissimilarity in the performances of the trainers can impact the quality and continuity
of the programs.

2. Simulation: 

Under this training, the trainee is required to learn the operations of machines and equipment that
are reasonably designed to look similar to those installed at the actual work floor.

38
 This is one of the most common method of training wherein the worker learns to operate tools
and machinery that look alike to those, they would be using in the actual work environment.

3. Vestibule Training: 

This type of training is specifically given to the technical staff, office staff and the employees
who learn the operations of tools and equipment assembled at a place away from the actual work
floor.

This type of training is conducted to give the real feel to the trainees that they would be
experiencing at the actual plant.

4. Case Studies: 

Under this method, the trainees are given the situation or a problem in the form of a case study,
and are required to solve it as per their learning from the training program.

 Advantages
i. It can improve the analytical, lateral and judgmental skills of the trainees.
ii. Since case studies mostly deal with real life events, it enables the trainees to face the
challenges of real-life difficulties confidently.
iii. It encourages open mindedness and provides a means of integrating interdisciplinary
knowledge.
iv. The trainees become aware of managerial concepts and processes and their application
to specific situations.
v. Detailed descriptions of real-life situations help to create interest of trainees.
vi. It makes trainees aware of obscurities, contradictions and uncertainties involved in
business.
 Disadvantage
i. The group of trainees must consists of person who can understand quickly.
ii. The case should be a true representation of the issues involved. It should be

39
 objective without comments from the case writer.
iii. It should be well documented with history, facts and figures.
iv. It should be based on first-hand information so as to be realistic.
v. The discussion leader should allow full opportunity to the learners to think and
participate.

5. Role playing: 

This type of training is essential in case of customer services. Under this, the trainees assume
roles and enact as per the given situations. It is also called as socio-drama or psycho-drama,
wherein the employees act as if, they are facing the situation and have to solve it spontaneously
without any guidance.

 Advantages
i. It is often used to impart the skills necessary for conducting interviews,
handling grievances, performance evaluation and disciplinary proceedings.
ii. It can vastly improve the empathetic quality of the employees.
iii. It helps to enhance interpersonal relations. Problem-solving ability,
motivational skills and leadership techniques of the trainees.
iv. Trainees learn to accept criticism from others, and the group soon recognizes
that sound suggestions benefit everyone.

 Disadvantages
i. The power of role playing is only harnessed when the role player receives
expert feedback. Inexpert feedback or feedback from group members who are at
the same level of competence as the role player is often useless, and does not
further learning.
ii. While some employees will be comfortable role playing, they’re less adept at
getting into the required mood needed to actually replicate a situation.

40
6. Management Games:

 Under this method, the trainees are divided into groups and then they are presented with the
simulated marketplace or the situations, wherein they are required to apply their learning and
solve the problems accordingly.

Under off-the-job training, the worker concentrates only on the learning of a job and is not
accountable for the production.

 Advantages
i. It helps to analyze and select the relevant data from a mass of information and also
helps to decide with incomplete data.
ii. It is useful in developing problems-solving skills.
iii. It helps in developing leadership skills and in fostering teamwork.

 Disadvantages
i. It is very difficult and expensive to develop and implement good games.
ii. The games are artificial because in real life executives are regarded for creating new
alternatives rather than for choosing from a give list of alternatives
iii. The trainees who are successful in these games may not be successful on the job.

41
 Process of Training and Development

1. Needs assessment: 

The first step in the training process is to assess the need for training the employees. The need
for training could be identified through a diagnosis of present and future challenges and through
a gap between the employee’s actual performance and the standard performance.

The needs assessment can be studied from two perspectives: Individual and group. The
individual training is designed to enhance the individual’s efficiency when not performing
adequately. And whereas the group training is intended to inculcate the new changes in the
employees due to a change in the organization’s strategy.

42
2. Deriving Instructional Objectives:

 Once the needs are identified, the objectives for which the training is to be conducted are
established. The objectives could be based on the gaps seen in the training programmes
conducted earlier and the skill sets developed by the employees.

3. Designing Training Program: 

The next step is to design the training program in line with the set objectives. Every training
program encompasses certain issues such as: Who are the trainees? Who are the trainers? What
methods are to be used for the training? What will be the level of training? etc.Also, the
comprehensive action plan is designed that includes the training content, material, learning
theories, instructional design, and the other training requisites.

4. Implementation of the Training Program: 

Once the designing of the training program is completed, the next step is to put it into the action.
The foremost decision that needs to be made is where the training will be conducted either in-
house or outside the organization.

Once it is decided, the time for the training is set along with the trainer who will be conducting
the training session. Also, the trainees are monitored continuously throughout the training
program to see if it’s effective and is able to retain the employee’s interest.

5. Evaluation of the Training Program:

After the training is done, the employees are asked to give their feedback on the training session
and whether they felt useful or not. Through feedback, an organization can determine the weak
spots if any, and can rectify it in the next session. The evaluation of the training programe is a
must because companies invest huge amounts in these sessions and must know it’s effectiveness
in terms of money.

43
Thus, every firm follows the series of steps to design an effective training programme that serves
the purpose for which it was intended.

44
Chapter-04

45
DATA ANALYSIS
AND
INTREPRETATION

46
Q3- Do you think training program is compulsory for the
employees?
Q1-To what Age group do you belong to?

Pattern pattern
Respondent Respondent
yes 90
18-21 15
No 8
21-26 20
Can’t say 2 38
26-32
32-35 27

Age Group
40% 38%
35%
30% 27%
25% 20%
20% 15%
15%
10%
5%
0%
18-21 21-26 26-32 32-35

Q2- Training is must for enhancing productivity and performance?

Pattern Respondent
completely agree 67
partially agree 24
disagree 5
unsure 3

0.8
0.7 67%
0.6
0.5
0.4
0.3 25%
0.2
0.1 5% 3%
0
complety partially agree disagree unsure
agree

47
 1 90%
0.8
0.6
0.4
0.2 8% 2%
0
yes no cant say

Q4-From the following training methods under which

training method you have been trained?

Pattern Respondent
on the job 80
off the job 15
both 5

1
80%
0.8
0.6
0.4
0.2 15%
5%
0
on the job off the job both

Q5- have you attended any training program before induction in the organization?

Pattern Respondent
Yes 60

48
no 40

0.7 60%
0.6
0.5 40%
0.4
0.3
0.2
0.1
0
1

yes no

Q6-If you were trained off the job which of the following
methods you would prefer?

Pattern Respondent
job rotation 50
coaching 20
Seminar 10
Role play 20

0.6
50%
0.5
0.4
0.3
20% 20%
0.2
10%
0.1
0
job rotaion coaching seminar role play

Q7-Did you feel any improvement after attending the

training program?
Pattern Respondent
yes 88
no 12

49
 1
0.9 87%
0.8
0.7
0.6
0.5
0.4
0.3
0.2 12%
0.1 yes no
0
1

Q8- what should be the ideal time to evaluate feedback after

training?

Pattern Respondent
Immediately after training 40
After 15 days 15
After 25 days 40
After 1 month 5

40% 40%
0.4
0.3
0.2 15%
0.1 5%
0
immediately after 15 days after 25 days after 1 month
after training

Q9- Do you feel that training is important for employees

and should be compulsory in every organization?

Pattern Respondent
Yes 95
No 5

50
 1 95%

0.8
0.6
0.4
0.2 5%
0
1

yes no

Q10-Are you satisfied by the training program provided to

you?

pattern Respondent
yes 98
no 2

1.2
98%
1
0.8
0.6
0.4
0.2
2%
0
1

yes no

FINDINGS

In this study we find the following findings-

 The employees are well satisfied with the training and development program.
 Maximum employees feel that job rotation is the factor to motivate them.
 Maximum employees feel that training enhance performance.
 Maximum employees that training improves the working level of employees.

51
 CONCLUSION

In the final analysis I conclude that study of the impact of training and development on
employee’s performance in an organization is very crucial for every organization. Organization
simply cannot achieve their goals and objectives without proper manpower and if the rate of
Training and Development would be low then no organization would be able to achieve its
objectives.

52
As per my findings I come to a conclusion that at EQUITAS SMALL FINANACE BANK
Majority of the employees are satisfy with the present Training and development program
prevailing in the organization. Based on the study of the impact of training and development on
employee performance in an organization. It is clear that the company is providing adequate
training and development program.

Finally the study concludes that the employees are satisfied with the training and development
program.

BIBLIOGRAPHY

Websites:

o www.yourarticlelibrary.com
o www.wikipedia.com

53
Magazines:

 EQUITAS SMALL FINANCE BANK magazines

 EQUITAS SMALL FINANCE BANK prospectus

ANNEXURE

Q1-To what Age group do you belong to?

a) 18-21

b) 21-26

54
c) 26-32
d) 32-35
Q2- Training is must for enhancing productivity and
performance?
a) completely agree
b) partially agree
c) disagree
d) unsure

Q3- Do you think training program is compulsory for the

employees?
a) yes
b) no
c) can’t say

Q4-From the following training methods under which

training method you have been trained?
a) on the job
b) off the job
c) both

Q5- have you attended any training program before

induction in the organization?
a) yes

55
 b) no

Q6-If you were trained off the job which of the following
methods you would prefer?
a) job rotation
b) coaching
c) seminar
d) role play

Q7-Did you feel any improvement after attending the

training program?
a) yes
b) no

Q8- what should be the ideal time to evaluate feedback after

training?
a) immediately after training
b) after 15 days
c) after 25 days
d) after 1 month

Q9- Do you feel that training is important for employees

and should be compulsory in every organization?
a) yes
b) no

Q10-Are you satisfied by the training program provided to

you?

56
a) yes
b) no

57