COMPANY PROFILE

ITC is one of India's foremost private sector companies that has a

diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery,
Greeting Cards and other FMCG products.
ITC's Agri-Business division is one of India's largest exporters of
agricultural products. ILTD Division, part of Agri-Business, is the largest
buyer, processor and exporter of cigarette tobaccos in India. The efforts of
ILTD in tobacco development and export marketing have enabled India to
become the fifth largest producer and eighth largest exporter of cigarette
tobaccos in the world. The division has successfully leveraged technology up
gradation at the farm and processing ends to meet the requirements of customers
for quality and grades.
The Chirala Green Leaf (Tobacco) threshing factory has state-of-the-art
processing lines that have reached optimum productivity levels in throughput
and yields, besides ensuring superior product quality. These processing lines
represent the global benchmark for green leaf threshing plants.
Looking back in history, British American Tobacco Company had set up
Indian Leaf Tobacco Development (ILTD) Company to handle the procurement
of tobacco in India and actively encourage its growth by farmers.

ILTD had discovered a promising tobacco growing area in Andhra

Pradesh called the South India Leaf Area (SILA). Having established growing
and buying points, the important milestone in ILTD history was the
establishment of the processing facility at Chirala in 1922. From hand
stemming operations during 1922-80, today the GLT has grown into a state-of-

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the-art green leaf threshing factory with a capacity of 430 tons of green leaf
per day.
From a subsidiary to Cigarette factories of ITC, the Division has grown with
targets set to export 50 % of its processed tobaccos in year 5, due to its
continually improving processing capabilities and expanding customer base.

ABOUT ITC COMPANY

LEADERS FOR OVER 90 YEARS
ITC is the market leader in cigarettes in India. Its India
Tobacco Division (ITD) Pioneers the marketing of cigarettes in India way
back in 1910. ITC. Today is one of the world's finest cigarettes manufacturing
and marketing companies. Backed by state-of- the-art technology and a
portfolio of valuable brands, ITC produces over 65 billion cigarettes a year.
ITC also pioneered the cultivation and development of
cigarette leaf tobaccos in India. With a 90 years history of working closely with
tobacco farmers, its Indian Leaf Tobacco Development (ILTD) Division is
the country's largest buyer, processor and exporter of cigarette tobaccos. ILTD
is credited with bringing about the economic transformation of the tobacco
farmer in Andhra Pradesh where it is fondly referred to as the "Talli Company"
(Mother Company in Telugu).
History And Evolution
ITC was incorporated on August 24, 1910 under the name of
'Imperial Tobacco Company of India Limited'. Its beginnings were humble.
A leased office on Radha Bazaar Lane, Kolkata, was the center of the
company's existence. The company celebrated its 16the birthday on August 24,
1926, by purchasing the plot of land situated at 37, Chowringhee, (now renames
J.L. Nehru Road) Kolkata, for the Sum of Rs 310,000. This decision of the
company was historic in more ways than one. It was to mark the beginning of a
long and eventful journey into India's future.

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 The company's headquarter building, 'Virginia House', which
came up on that plot of land two years later, would go on, to become one of
Kolkata’s most venerated landmarks. The company's ownership progressively
indianised, and the name of the company was changed to ITC Limited in 1974.
In recognition of the company's multi-business portfolio encompassing a wide
rage of business - Cigarettes & Tobacco, Hotels, Information Technology,
Packing, Special1y papers, Paperboards, Agri-Exports and Lifestyle Retailing -
the full stops in the company's name were removed effective September 18,
2001. The company now stands rechristened 'ITC Limited'.

Though the first six decades of the company's existence were primarily
devoted to the growth and consolidation of the cigarettes and Leaf Tobacco
businesses, the Seventies witnessed the beginnings of a corporate
transformation that would usher in momentous changes in the life of the
company.
In 1975 the company launched its Hotels business with the acquisition of
a hotel in Chennai, which was rechristened ITC-Welcome group Hotel Cho1a'.
The objective of lTC's entry into the hotels business was rooted in the concept
of creating value for the nation ITC chose the hotels business for it's potential to
earn high levels of foreign exchange, create tourism infrastructure and generate
large-scale direct and indirect employment. Since then lTC's Hotels business
has grown to occupy a position of leadership, with 44 owned and managed
properties spread across India. It also has a marketing and reservation
arrangement with the Sheraton Corporation, the reputed international hotel
chain.

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 In 1979, ITC entered the Paperboards business by promoting ITC
Bhadrachalam Paperboards Limited, which today has become the market leader
in India. Bhadrachalam Paperboards amalgamated with the company effective
March 13, 2002 and became a Division of the Company, Bhadrachalam
Paperboards Division. In November, 2002, this division merged with the
company's Tribeni Tissues Division to form the Paperboards & Specialty Papers
Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. IT has also
made an immense contribution to the development of Sarapaka, an
economically backward area in the state of Andhra Pradesh. It is directly
involved in education, environmental protection and community development.
In 1985, ITC set up Surya Tobacco Co. in Nepal as a joint
venture with the reputed Soaltee group. In August 2002, Surya Tobacco became
a subsidiary of ITC Limited. Its name was changed to Surya Nepal Private
Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a specialty paper

manufacturing company and a major supplier of tissue paper to the cigarette
industry. The merged entity was nan1ed the Tribeni Tissues Division (TTD). To
harness strategic and operational synergies, TTD was merged with the
Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
Also in 1990, leveraging its Agri-sourcing competency,
ITC set up the international Business Division (IBD) for export of Agri-
commodities. The Division is today one of India's largest exporters.

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 Recently, ITC's Packaging & Printing business has launched a line of
high quality greeting cards under the brand name "Expression". ITC has also
entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wears for men and women. ITC has spun off its
information technology business into a wholly owned subsidy. ITC InfoTech
India Limited, to more aggressively pursue emerging opportunities in this area.

THE ITC WAY

ITC is a board-managed professional company, committed
to creating enduring value for the shareholder and for the nation. It has rich
organizational culture rooted in its core value pf respect for people and belief in
empowerment. Strong corporate governance policies and systems back its
philosophy of all-round value creation.
ITC's corporate strategies are aimed at matching its core
capabilities with market opportunities to produce superior shareholder value.

The key corporate strategies are

 Continue to focus on the core businesses of Cigarettes & Tobacco,
Hotels, and Packaging & Paperboard.
 Ensure that each of its businesses meets the three criteria of
sustainability, namely Market Standing, Profitability and Internal
Vitality. Exit from businesses, which do not meet these criteria
within an agreed time frame.
 Ensure that each business is internationally competitive in the
Indian global market,
 Create distributed leadership within the organization by nurturing
talented and focused top management teams for each of the
businesses.

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  Institute and practice a system of corporate governance appropriate
to ITC's character and constitution. Such a system of governance
must achieve a wholesome balance between the need for executive
freedom for management and the requirement of a framework for
effective accountability.
NO STOPS FOR ITC
 No stops to our commitment beyond the market
 No stops to our vision of contributing to the nation
 No stops to our endeavor to become world-class
 No stops to our creation of sustained shareholder value
 We have pulled out all the stops.

AWARDS
ITC's Packaging business has won numerous awards for its quality,
environmental management systems and product excellence:
 First in India to be assessed at Level 6 on the International Quality Rating
Systems (IQRS).
 Both the Chennai and Munger factories have obtained ISO 9002
certification. The Tinivottiyur and Munger factories have also received the
ISO 14001 Environment Management Systems certification.
 Quality Improvement Benchmark Awards for 1997 and 1998.
 British Safety Council Swords of Ron or in 1999 for both the Chennai and
Munger factories.
 CAPEXIL Special Export Award for 1999 and Top Export Award for
2000/01.

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  The World Star award for Aashirvaad Select 2-kg pack in the Consumer
Pack category in 2002, Wills Natural Lights in 1999, Royal Velvet &
Passport whisky cartons in1998 and Nargis lined tea cartons and Vacupack
bulk packaging for tea in 1997.
 Asia star awards for packaging excellence in 1999, 2000 and in 2001 we
have received 3 Asia star awards for Surya lOs, Royal Stag 750ml and
No.1 Gift Pack.
 India Star Awards for unique, innovative and visually appealing packaging
in 2002 for the Aashirvaad Select 2-kg pack and for Bagpiper Gold, Royal
Challenge and Sara lee Celebration packs in 2000.
BOARD OF DIRECTORS
CHAIRMAN
Sanjiv Puri

EXECUTIVE DIRECTOR

Nakul Anand
Sumanth Bhargavan
Rajiv Tandon
NON EXECUTIVE DIRECTORS
Shilabhadra Banerjee
Hemant Bhargava

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Arun Duggal
Sunil Behari Mathur
Anand Nayak
Nirupama Rao
Ajit Kumar Seth
Meera Shankar
David Robert Simpson

PROFILE OF ITC LTD - ILTD DIVISION IN CHIRALA

Plant was also considered as "The largest tobacco threshing
in Asian continent". In ITC Limited, ILTD Division has a history of 85years of
partnership with formers and leadership in the cultivation of Cigarette Tobacco.
ITC introduced natured and developed Virginia and purely Tobacco in India.
There are Six Chronological events in ILTD starting from 1980- 1990.
In ILTD Division there are Two Factories in A.P. one is at
Anaparthi and another is at Chirala. Guntur is the Head Office for these two
factories. Chirala is located at distance of 350K.M. from Chennai and south east
of Hyderabad.
The first activity in Chirala was in the year 1918, started with
leaf buying, redrying factory was setup in the year 1926 at Chirala over the
period with changes in the environment and business needs, green leaf threshing
plant was setup in the year 1985 with increase in customer demands. Second
line was added in the year 1990 - 91 to enhance the production capacity. The
plant is with state of art and technology and was considered as one of the best
plants in India in turns of products quality and this division is located in Perala
village outskirts of Chirala, which is providing agricultural commodity, as it
deals with agricultural commodity, the operational phase in each and every
year, varies with seasonal and non-seasonal periods.

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 Modernization has been a continuous process at Chirala factory keeping
customer needs as the guiding post. In 1984 the factory switched over from
hand stripping to mechanize threshing with an initial installed capacity of 4
Tons per hour.

The factory has a quality control laboratory of international standards

with facilities for online monitoring and infra analyzer to analyze chemistry of
Tobacco. The factory has also a 33 KV sub-station of 5MVA capacity from the
State Electricity Board and has a standby captive generation power plant for
100% power requirement of the factory. The leaf storage capacity is of 7.5
million Kgs. With facilities for mechanized unloading and loading operation.
The quality of the product supplied to the domestic and overseas customers is a
true reflection of the morale and commitment of the employees of the factory
continuous improvement in various aspects of the quality of the Product.

ILTD BUSINESS AND ORGANIZATION MISSION

STATEMENT
“To enhance the wealth generating capacity of the enterprise
in globalizing environment, delivering superior and sustainable stake holder
value"

ILTD DIVISION LONG TERM BUSINESS OBJECTIVES

1. To be dominating player in every field in which, we choose to operate.
2. To attain and maintain the leadership position in exports among private
sector companies in India.
3. To become one of the foremost institutions in the world for plant material
based formulation/ products commercial scale to make this world safer

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 place to live.
4. To reestablished and strength in over image as a friend of the farmer as an
institution contributing. Significantly to rural prosperity through
improving the economics of the farming community and tribal
population.

INTERNATIONAL RECOGNITION
Quality: Chirala green leaf-threshing facility is the world’s first ISO 9002
certified tobacco-processing plant
Safety: The factory is the one of the safest factories, a fast confirmed by the
awards of the British Safety council for the years 1993 & 1994 and sword of
honor for 1994.
ENVIRONMENTAL CERTIFICATION
ILTD’s Green leaf threshing plant at Chirala has been
awarded the BS 7550 certification, a British environmental system standard, by
the Bureau Verities Quality International (BVQI). Chirala becomes the first ITC
unit to get the Environment Management System (EMS) certification and joins
a select brand of companies in India to have this distinction.

PROGRESSING STAGES IN ILTD

1. Feeding
2. Conditioning
3. Band reeling
4. Dividing
5. Picking
6. Threshing
7. Classification
8. Redrying

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 9. Processing packing

ILTD Division Vision Statement

The most valued leaf tobacco and agri-business
organization, providing world class products and services.

ILTD Division Mission Statement

Our mission is to deliver superior value to all stakeholders
across the agri-value chain through innovation, excellence and scale.

THE UNIT WAS WORKING IN TWO PERIODS

Seasonal Period: - It starts from November and ends with July with a gap of
one or two months.
Non-seasonal period: - It starts from august and ends in October.
During seasonal period, the plant is engaged with threshing green leaf tobacco
with full utilization. On the contrary during the seasonal periods spread over
four months in the year i.e., during monsoon period in the area of plant
shutdown. During the above period the seasonal workers are discharged. The
engineering and essential service personnel will be carrying out the maintenance
and of the plant.

Organisational Culture
ILTD’s Core Values are aimed at developing a customer-
focused, high-performance organization which creates value for all its
stakeholders:

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Customer Focus
We will always be customer focused. We will deliver what
the customer needs in terms of value, quality and satisfaction.

Respect for People

We will respect and value people and uphold humanness and
human dignity. We will value differences in individual perspectives. We want
individuals to dream, create and experiment in pursuit of opportunities and
achieve leadership through team work.

Excellence
We will strive for excellence in whatever we do. We will do what is
right, do it well and win.

Organizational Learning
At the tracking level is the Unit Balance Score card, where there are
initiatives for Learning and Growth plan in line with the unit’s business goals
and with target groups to be covered monitored. All projects and assignments
are taken up with teams formed from different areas of specialization. This
enables sharing of expertise and knowledge. Internet and Learning trends,
industrial best practices need based up-gradation on product, process and
technology is ensured through in-house and external training inputs.

Innovation
We will constantly innovate and strive to better our processes,
products, services and management practices

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Group Meetings
The Supervisor shall conduct group meetings in every
department every fortnight at the shop floor for a span of one hour to
communicate the past week’s performance of the department, business,
operational and quality related issues and the employees’ contribution to solve
the same.
All T5 supervisors shall be assigned the responsibility to conduct group
meetings in their respective departments / areas.

Performance improvement system

 Balance Score card is the methodology to maintain focus on performance
evaluation and improvement.

 Integrated Management system (ISO 9000, ISO 14000, SA 8000 and

OHSAS 18000) and its effective implementation leads to systematic
evaluation and improvement of key processes.

 Internal branding initiatives & Benchmarking.

Ethical Corporate Citizenship

We will pursue exemplary standards of ethical behavior. We will at all times
comply with the laws of the land.

Employee Profile
The factory at Chirala is seasonal as the
T tobacco crop is grown in specific
O
periods at different
UNIONISED zones. During
SEASONAL
NONseason the processing is done in three shifts.
T
SEASONAL
A
During Off season, plant and facilities maintenance & modifications are
L
Technicians Nil 138 138
Class A 136 34 170
Class B 1522 125 13 164
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Baldly 269 269
 Technician’s categories are a pool of technically qualified (Diploma / ITI)
employees who cater to the needs of Production and engineering departments.
Clerical are primarily those who maintain the accounts and capture data at
different locations in the factory. Class B are those engaged for mostly manual
tasks in the factory and the majority are illiterate.

Each of the unionized categories of employees has their own

democratically elected Union and the elections are held once in two years.
These office bearers are elected by their category of employees across the ILTD
Division with representatives for the Division and for the operating units.

Long term agreements for spells of four years are entered into by
negotiating with the elected representatives of the respective category. The
work requirements, the compensation package and employee welfare are
finalized in the LTA.

Badlis, numbering 269, are the category of employees who provide

absentee coClass B employees during Season. They get converted to Seasonal
Class B employees based on requirements.
MAIN PRODUCTS
The main products from the Green Leaf Threshing factory at Chirala are Un-
manufactured tobaccos

 Lamina,

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  Stem
 AVR / export scrap
The services that are assured with the product
 Improved shelf life
 Elimination of No Tobacco Related Material ( NTRM ),
 Pest and Mould free
 Storage & Handling / Cool stores

The channel for delivering the products is the ILTD Division Marketing
department.

Domestic
Customers

GLT at ILTD Export end Other end

Chirala Unmanufactured
Marketing users users
tobaccos
Other end
users
Merchants
Other end
users

Long term agreements for spells of four years are entered into by
negotiating with the elected representatives of the respective category.
The work requirements, the compensation package and employee
welfare are finalized in the LTA.
Badlis, numbering 269, are the category of employees who provide
absentee coClass B employees during Season. They get converted to Seasonal
Class B employees based on requirements.

Contracted work are of two categories

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 I. Regular
Pest Control Operations and Security are being carried out
by professional competent agencies.
II. Need based
Civil works, repairs, painting, housekeeping etc.
Licensed contractors with competencies required for their trade and trained and
authorized for work in the factory, are engaged. Their work conditions are
monitored to conform to Contract Labour related legislation and ITC guidelines
for contract labour.

Chirala factory is committed to 100% statuary compliance. The unit has a

track record of implementing the Best Practices and far exceeding the prescribed
standards under different statutes. The unit’s performance is verified and certified
by reputed accrediting agencies.

The unit has won many Awards both National and International.

 Rajiv Gandhi National Quality Award 1994 - (BEST OF ALL)

 Golden Peacock Environmental Award 1999
 Best Energy Conservation award 2000
 Rospa Gold Awards / Sector Award - 2000 - UK
 Sword of Honor ( 14 times from 94 to 2008 ) - UK

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Induction/ Job Orientation
Induction & Job Orientation programs shall be designed to impart knowledge
on work procedures, task/ operating instructions to the new recruits and
transferred employees, on the first two days of their joining the unit.

The induction program, apart from the above specified content, shall also
include details on the following:

 Organization

 H R Framework in ILTD, Chirala

 Role of H R

 Employee Welfare

 Brief on Tobacco Processing in CGLT

 Role of Finance

 Unit Business Objectives

 Customer Requirements

 Quality Management Systems & Accreditations

 EHS

 Social Accountability

 AIDS Awareness

Respective departmental head shall be responsible for the induction of the new
recruitees in his department.

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 As the Technicians skills form the core part of the organization skills, the
unit shall design an on-the-job induction program for a period of six months to
enable the recruited technician understand the intricacies of his job description
and its contribution to the quality of the product to his internal & external
customer. The performance of the incumbent shall be assessed at the end of
every month during his six months on-the-job induction period. Based on the
performance of the incumbent, he shall either be confirmed as a permanent
employee or his induction period is extended by a period as decided by the
departmental head.
The Class ‘B’ general workers and Class ‘A’ Clerks shall be imparted on-the-
job induction program in the areas / department they are deployed.
Diversified and multi-faceted skills shall be imparted to the individuals thru’ job
rotation during the employee’s induction program.
The records of attendance of induction training shall be filed in the respective
personal files of the individuals.

Customer groups and market segments

The Key customer for the processing factory at Chirala are Export and
Domestic customers

CUSTOMER SEGMENT VOLUMES

DOMESTIC ITD 60 %

EXPORT BAT Co, ITG, DIMON, International 40%

Merchants
KT & G – Korea
Scotland – UK and companies in Russia,
Yemen and Greece China, USA, Vietnam,
Bulgaria
23 countries

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Strategic challenges

Strategic challenge - Human

 Large number of illiterate employees

 Growing percentage of young employees who have greater aspirations
& requirement
 To align New Employee aspirations with the organization goals and
vision

Strategic challenge - Operational

 Closer control on NTRM

 Greater requirement for Social responsibility initiatives
 Product traceability and Integrity and value chain integration
 Demand for higher yields
 More stringent Product Quality tolerances

Performance improvement system

 Balance Score card is the methodology to maintain focus on
performance evaluation and improvement.
 Integrated Management system ( ISO 9000, ISO 14000, SA 8000
and OHSAS 18000 ) and its effective implementation leads to
systematic evaluation and improvement of key processes.
 Level 7 in IQRS (international quality Rating system) is a further
means to ensure greater organizational focus on continual
improvement in all aspects of the operations and processes.
 Internal Branding Initiatives & Benchmarking

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 ORGANISATON STRUCTURE – ITC
CORPORATE TO ILTD CHIRALA
CHAIRMAN

Directors

Agri Business
Chief Executive

ILTD Division
Chief Executive

Vice President Vice President – Vice President Vice President

– Process & – –
Finance & Technology HRD & PA Marketing
MIS
Factory Manager

Production QC Factory Factory Persil EHS Mgr Factory

Mgr Manager Engr Mgr Accountant
Shift
Coordinators - Mgr. Mgr. Services
Acct.
Asst. Manager -
3 Electrical Suptd.
Shift HR
Managers - 6
Medical Security
I/c Storages - Officer Officer
1
Maintenance Mgrs -
2

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Training Methods Followed In ITC
On- The-Job Training Methods

This type of training, the individual is placed on a regular job and taught
the skills necessary to perform the job. On-the job training has the advantage of
giving firsthand knowledge and experience udder the actual working conditions.

 Job instruction
 Coaching

OFF-THE-JOB TRAINING METHODS

This type of training, the trainee is separated from the job situation and
his attention his focused upon learning the material to his future job
performance. Since the trainee distracted by job requirement, he can place his
entire concentration on learning the job rather than spending his time in
performing.

 Vestibule Training method

 Role Playing Method
 Movies/videos/computer-based training

 Discussion

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Training Procedure Followed In ITC

The following training procedure is essential an adoption of the job

instruction training course, which has been proved to have great values. The
important steps in the training procedure are:

1. Preparing The Instructor

The instructor must know both the job to be taught and how to teach it. The job
must be divided into logical parts so that each can be taught at a proper time
with out the trainee-losing plan. For each part, one should have in mind the
desired technique of instruction, that is, whether a particular point is best taught
by illustration, demonstration or explanation.
A series and committed instruction must:
 Know the job or subject he is attempting to teach.
 Have the aptitude and ability to teach and willingness towards the profession.
 Have a pleasing personality and capacity for leadership.

2. Preparing The Trainee

As in interviewing, the first step in training is to attempt to place the
trainee at ease. Most people are somewhat nervous when approaching an
unfamiliar task. Though the instructor may have executed this training
procedure, many times he or she never forgets its newness to the trainee. The
quality of empathy is a mark of the good instructor.

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 3. Getting Ready To Teach
This stage of the program is class hour teaching involving the following
activities:

 Planning the program

 Preparing the instructor’s outline.
 Don’t try to cover too much material
 Keep the session moving along logically
 Discuss each item in depth
 Repeat, but in different words.
 Take care, the material form standardized texts when it is available.
 Teach about the standard for the trainee like quality, quantity, waste or
scrap ability to work with out supervision, knowledge or procedure,
safety rules, human relations etc.

4. Presenting The Operation

There are various alternative ways of presenting the operation viz,

explanation; demonstration etc. an instructor mostly uses these methods of
explanation In addition, one niy illustrate various points through the use of
pictures, charts, diagrams and other training aids.

5. Try Out The Trainee’s Performance

As a Continuation of the presentation sequence given above, the trainee

should be asked to start the job or operative procedure, some instructor prefers
that the trainee explain each step before doing it, particularly if the operating
involves any danger. The trainee, through respective practice will acquire more
skill.

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6. Follow Up
The final step in most training procedures is that of the follow-up. When
people are involved in any problem or procedure, it is unwise to assume that
things are always constraint. Follow-up can be adapted to a variable
reinforcement schedule as suggested in the discussion of learning principles,
every training program should have a follow-up; otherwise the training
programs in the future can’t be improved.

After making the above steps the trainer has to take the following
steps.

1. Training Needs Identification

The training need for all employees is identified either by the respective
HOD’s or by the top management of ITC during the performance appraisal
process or updating the skill / competency matrix.

2. Preparing A Training Plan

Based on the above input the training plan is prepared by the HR

Manager once in a year and gets it approved by HR manager .While preparing
the training plan the backlog from the previous year training plan is also added.
The training plan is reviewed and updated in the HRM.

3. Preparing A Training Calendar

The participant list is categorized into batches and based on the training
period the calendar is prepared Batch Wise by the HR Manager and circulated
to the participants for information. In case of any changes the same is modified
and intimated to the concerned personnel.

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 4. Execution Of Training As Per The Training Calendar

For the internal training programs the trainers are selected from the list of
trainers, In case of external training programs the profile of the trainer is
received and reviewed by the HR Manager. The HR manager the trainer and
arranges the venue & the course material required for the program. The dates
are finalized based on the availability of the trained and the same is
communicated to the participants. In case of any change the program the same
is communicated to both the trainers and the participants.

5. Training Feedback From The Employees

On completion of the training program all the employees fill up the feed back
form and hand over to HR Manager.
Evaluation Of The Training Imparted
After the target date mentioned in the feed back form, the HR Manager
of ITC evaluates the effectiveness of the training imparted through the
respective HOD. If the results are satisfactory then the employee’s skill
matrix is updated else the employee is recommended for re-training.

6. Training Needs Identification

The training need for all employees is identified either by the respective
HOD’s or by the top management of ITC during the performance appraisal
process or updating the skill / competency matrix.
7. Preparing A Training Plan
Based on the above input the training plan is prepared by the HR Manager
once in a year and gets it approved by HR manager .While preparing the
training plan the backlog from the previous year training plan is also added. The
training plan is reviewed and updated in the HRM.

25
 8. Preparing A Training Calendar
The participant list is categorized into batches and based on the training
period the calendar is prepared Batch Wise by the HR Manager and circulated
to the participants for information. In case of any changes the same is modified
and intimated to the concerned personnel.

9. Execution Of Training As Per The Training Calendar

For the internal training programs the trainers are selected from the list of
trainers, In case of external training programs the profile of the trainer is
received and reviewed by the HR Manager. The HR manager the trainer and
arranges the venue & the course material required for the program. The dates
are finalized based on the availability of the trained and the same is
communicated to the participants. In case of any change the program the same
is communicated to both the trainers and the participants.

10.Training Feedback From The Employees

On completion of the training program all the employees fill up the feed
back form and hand over to HR Manager.

11.Evaluation Of The Training Imparted

After the target date mentioned in the feed back form, the HR Manager
evaluates the effectiveness of the training imparted through the respective HOD.
If the results are satisfactory then the employee’s skill matrix is updated else the
employee is recommended for re-training.

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TRAINING DIFFERENT EMPLOYEES
Employees at different levels required training. Un skilled required
training in improved methods of handling machines and materials to reduce the
cost production and waste and to do the job in the most economical way. Such
employees given training on the job itself and the training is imported by their
immediate superior officers, foreman. The training period range from 3 weeks
to 6 weeks.
Semi skilled workers
Requires training to copy with the requirements of an industry arising out
of the adoption of mechanization, rationalization and technical process. These
employees are given training in their own sections of dependants or in
segregated training shops where machines and other facilities are usually
available.
Skilled Workers
Skilled workers are given training through the system of apprentices ship
which various in duration from a year to 3 or 5 years such training. It also
known as trades man or craftsman training and is particularly useful for such
trades in industry which require highly sophisticated skills as in carpentry,
drilling boring, planning and host of other industrial job and operations.

Other employees
Besides the above types of employees other typists, stenographers,
accounts clerk and those who handled computers need training in their
particular fields but such training is usually provided out side an industry.

27
Training Process
The steps to be followed in ITC in conducting the training process would be:
Setting Evaluation Criteria

Assessing the knowledge prior to training

Trained or developed Workers

Assessing the knowledge after training

Transfer to the Job

Follow up Studies
Management development Methods Used In ITC
On The Job Experience
 Coaching
 Multiple Of Management
 Under Study
Formal training
 Incident method
 Conference
 In basket method
 Sensitivity training

28
 INDUSTRY PROFILE
ITC is one of India’s foremost private sector companies that
has a diversified presence in cigarettes, hotels, paper boards & specially papers,
packaging, Agri- business, branded apparel, packaged foods and confectionary,
greeting cards and other FMCG products.
ITC’s Agri- business division is one of the India’s largest
exporters of agricultural products. ILTD Division, part of Agri business, is the
largest buyer, processor and exporter of cigarette tobacco’s in India. The efforts
of ILTD in tobacco development and export marketing have enable India to
become the fifth largest producer and eighth largest exporter of cigarette
tobaccos in the world. The division has successfully leveraged technology up
gradation at the farm and processing ends to meet the requirements of customers
for quality and grades.
The Chirala Green leaf threshing factory has state of the art
processing lines that have reached optimum productivity levels in through put
and yields besides ensuring superior product quality. These processing lines
represent the global benchmark for green leaf threshing plants.
Looking back in history British American Tobacco
Company had set up Indian leaf tobacco Development Company to handle the
procurement of tobacco in India and actively encourage its growth by farmers.
ILTD had discovered a promising tobacco growing area in Andhra Pradesh
called the south India leaf area (SILA). Having established growing and buying
points, the important mile stone in ILTD history was establishment of the
processing facility at Chirala in 1922. From hand stemming operations during
1922-80, today the GLT has grown into a state of the art green leaf threshing
factory with a capacity of 430 tones of green leaf per a day. From an subsidiary
to cigarette factories of ITC, The division has grown with targets set to exports
50% of its processed Tobacco in year, due to its continually improving
processing capabilities And expanding customer base.
29
TOBACCO INDUSTRY
Tobacco grown in India for over centuries, contributes
significantly to the well being of the country. From the marginal farmer
growing tobacco on unirrigated, small land holdings to retailers in remote
corners of India, over 26 million people benefit from their direct or indirect
association with the tobacco industry.
Grown on a commercial scale in over 100 countries world
wide, tobacco forn1s a major part of the socio-economic lifeline of over 15
developing countries. Besides creating economic prosperity for rural
populations, it generates substantial revenues for those governments and boosts
agro-exports.
The global production and consumption of tobacco continue
to grow at an estimated rate of 1.95 and the total market in tobacco products is
valued at US $275 billion-about 78%of India's GDP. Tobacco and export of
tobacco products are a major source of income of developing countries- over
70% of Malawi's and 40% of Zimbabwe's exports earnings come from tobacco.
Brazil and china also depend on tobacco export incomes, which are in the
region of US $1.5 billion.
In India, tobacco is a major contributor to agrarian economy, the
exchequer and to agro-exports. Six million farm laborers find gainful
employment in tobacco farming. The tobacco industry provides almost 10% of
governments excise collections and 4% 0f all agro-exports. While 85% of
tobacco consumption worldwide is in the form of cigarettes, in India it is less
than 20%. A skewered taxation policy has restricted cigarette volumes but
ensured that cigarettes account for 87% of revenue generated by the tobacco
sector. So, modest volumes have limited the tremendous revenue potential of
cigarettes and cigarette tobacco.

30
 The global import-export trade in tobacco was worth $30 billion
in 1994 of which 25% billion was genet\rated by cigarettes. With 78% of Indian
tobacco being non-cigarette types, exports have been correspondingly modest-
less than 1 % of the global trade. What emerges clearly is the opportunity that
cigarettes and cigarette tobaccos offer in tem1S of revenue, improving quality
of employment, developing the rural economy and increasing foreign earnings.

THE FARMERS FRIEND

Among commercial crops, tobacco occupies a unique and
distinct posits. Tobacco uses just 0.3% of arable land to yield it of agricultural
value nearly 4o/t of India's agro-exports. No other crop provides such value to
the farmer under similar conditions in India. It is grown in a large number of
states with Andhra Pradesh, Karnataka, west Bengal, TamilNadu, Bihar, Utter
Pradesh, Orissa and Maharashtra being the major tobacco providing areas.
Andhra Pradesh and Karnataka are the two states growing the cured Virginia
tobacco used in making cigarettes and also the exportable variety.
Tobacco is drought resistant crop grown substantially on
non-irrigated soils. More than 50% of tobacco cultivation takes place in areas
without irrigation. This is significant in a country like India where 70_ of arable
land lacks irrigation. At the same time it is the only hardly crop that withstood
the residual moisture and organic matter during three consecutive cyclones in
Andhra Pradesh and gave the farmer well yields.
It is short-term cash crop compared to other main crops of
the region and takes between four to six months to grow. The tobacco farmer to
cultivate other crops for the rest of the year can use the land. Growing tobacco
improves soil fertility there by increasing the yield of other crops on the same
soil.

31
 The cigarette tobacco grower receives regular scientific inputs
on improving yield and quality, and developing new varieties from the private
sector as well as the b\government. The central tobacco research institute in
Rajahmundry, Andhra Pradesh, has played an important part in agricultural
research project that spans six state agricultural universities and six centers
under the Indian council for agricultural research.
Though tobacco is a significant contribute to the Indian.

CREATING WEALTH FOR THE NATION

Though tobacco is a significant contribute to the Indian exchequer,
revenue generation from the segments restricted by the nature of tobacco
consumption. Despite being only 19% of tobacco consumption, Rs 3500 crores
out if the Rs 4036 crores (nearly 87%) that accounted at tobacco excise in 1996
was x-accounted by the cigarettes. If all tobacco consumption was in the form
of cigarettes, excise collections would theoretically have been in the range of Rs
18000crores and would account fit 30% of the government excise revenues
instead of 10% if provides now. More cigarettes b\generation mean a giant leap
in revenue generation.
Cigarette excise is determines by length and type.
Therefore, the King size segment (cigarettes longer than 75mm) pays the
highest excise Rs 1100 per 1000 cigarettes-and also has the smallest market
share only about 15% Excise rates in India have increased annually. Volumes in
the conventional length segment of cigarettes has shown a small growth of 2.7%
since 1993-94 while in sharp contrast the excise revenues have grown at
compound a\rate if 10.7%. This volume and revenue growth must be seen in
contrast with the impressive performance of the micro segment (non-filter
cigarettes not exceeding 60mm in length) after duly reduction in March 1994,
even though this reduction was sustained for a brief period of two years.

32
 But in India, only 5% of all types of smoked tobacco products
are in the form of filter cigarettes. This share is likely to shrink further with the
budget proposals of a 16% hike in the 70mm filter cigarette segment, which
accounts for 44% of the cigarette industry,
The golden leaf in India yields tremendous promise. It is
capable of not only making a much larger socio-economic contribution at home,
but had the ability to make India emerge as a major player in the world tobacco
market. India has the infrastructural facilities, trained and experienced
workforce spanning all stages of tobacco production, and favorable agro-climate
conditions-factors, which undoubtedly augur well. It needs a progressive
tobacco policy to harness these advantages.

In order to attain the stated objectives, the government needs to focus on

these fundamentals.
 The specific duty structure in 1987 should be retained in view of
enhanced revenues it provides and in order to achieve litigation free tax
collections.
 The rate of duty of micro segment should be restored to Rs 60 per 1000
cigarettes, which has not affected the existing level of industry and
fetches major benefits to excise revenue.
 Retain single point taxation for cigarettes and discourage levy of luxury
and entry tax by state governments, which contravene the Act of 1957.
 Excise duty should be reduced by 5%, the weighted average impact of
sales taxes on cigarettes, till the Supreme Court pronounces a judgment
on pending cases.
 Give due consideration to premium segment which provide impetus to the
high quality, exportable tobacco. This will also protect excise erosion on
account of increased smuggling of foreign brands.

33
  The cigarette industry should be allowed the benefits of bringing back
damaged or defective goods for reprocessing. Denial of this benefit has
caused substantial loses to the industry.
 If it is not possible to bring down rates, current rates should be
maintained for at least two or three years to stabilize the market and
encourage cigarette volume.

Today's world increasingly relies on a. common agenda,

particularly in the context of commerce. In globalize environment, all
nations flow with the main stream of internal trends. India is no
exception. It has to convert its threats into competitive advantage to
emerge as a dominant player. Tobacco offers this opportunity to India.

AREAS IN OPERATIONS AND VARIETIES OF TOBACCO

Variety Areas
FCV - Traditional – Guntur - Prakasam - Nellore- Krishna –
Khammam Dist.
FCV - NLS-East & West Godavari Dist.
FCV - Mysore-Assam-Chick Mangalore- Shimoga.
VAC - Yeleswaram Burely East Godavari Dist.
VAC - Vinukonda Burely Guntur Dist.
VAC - Light Soil Burely-Orissa State-North Coastal Agency
Areas in A.P.
FAC - WAF-Kurnool Dist (White Ash frill)
LAC - EAC- West Godavari
Rustic - Gujarat
Lalchapadia - Gujarat
Laljudy - Gujara

34
TYPES OF TOBACCO GROWN IN INDIA:
1. FCV TOBACCO
a. Traditional Black Cotton : Andhra
b. Northern light soil tobaccos : Andhra
c. Southern light soil tobaccos : Andhra
d. Monsoon crop : Mysore
2. ACV VARIETIES
a. Monsoon Burely : Andhra
b. HDGRB : Andhra
c. SCN : Andhra
d. Rustica : Gujarat
e. Cigar tobacco : Madras
f. Bidi tobacco : Gujarat, Maharashtra and Madhya

TOP TOBACCO COMPANIES RANKED BY SALES

1. Marlboro Man built, Altair Group

2. British American Tobacco p.l.c.(BAT)

3. Japan Tobacco Inc.

4. R.J.Reynolds Tobacco Holdings, Inc.(RJR)

5. Altria,S.A

6. Gallaher Group Plc(GLH)

7. Carolina Group (CG)

8. Reemtsma Cigarettenfabriken GmbH

9. Imperial Tobacco Group PLC (ITY)

10.UST Inc. (UST)

35
1) Marlboro Man built, Altair Group ( formerly Philip Morris Companies ),is
the world’s largest tobacco firm . Altair operates its cigarette business through
subsidiaries Philip Morris USA and Philip Morris International, born of which
sell Marlboro – the world’s largest-selling cigarette brand since 1972 .The
company controls about half of the US tobacco market. However, tobacco is
only part of the story. The company owns 84% of Kraft Foods, the world’s #2
food company (after Nestle), which makes Jell-O,Kool-Aid, Maxwell House,
Oscar Mayer, and Post cereals. The tobacco giant bought Nabisco in late 2000,
folding it into Kraft’s food portfolio. Altair owns 36% of SAB Miller plc.

1) British American Tobacco p.l.c.(BAT)

When people pick up smoking, British American Tobacco (BAT)

picks up steam. Spun off in the reorganization of B.A.T. Industries, BAT is
the world’s #2 tobacco firm ( behind Altair Group ) with about 15% of the
market. It sells nearly 780 billion cigarettes in about 180 countries. Bat’s
international cigarette brands include Dunhill, Kent, Lucky Strike, and Pall
Mall; it also makes loose tobacco and regional cigarette brands. Its US unit,
Brown & Williamson (Cool and GPC cigarettes), is merging with the US
tobacco business of R.J.Reynolds Tobacco (RJRT).Companies controlled by
South African billionaire Anton Rupert own about 28% of BAT.
2) Japan Tobacco Inc.

Operates in foods to your health , so let’s be careful not to smoke

too much.” A state monopoly until 1985, Japan Tobacco company, after
Altair and British American Tobacco. Its JT International unit (acquired
from R.J.Reynolds) sells Camel, Salem, and Winston brands outside the US.
The company also, pharmaceuticals, agribusiness, engineering, and real
estate.

36
3)R.J.Reynolds Tobacco Holdings, Inc.(Rjr)
Give it up? R.J. Reynolds Tobacco Holdings (RJR) has been
smoking for more than 120 years, but increasing taxes and court costs have
encouraged competition from cheaper discount brands. Although RJR has been
forced to cut costs to maintain profits, the firm’s R.J.Reynolds Tobacco
company subsidiary (RJRT)continues to be the #2 US cigarette maker , with a
market share of about 23% --compared with the 49% share of the Altair Group
(formerly Philip Morris). RJRT’s Camel, Doral, Salem, and Winston brands are
among the best-selling cigarettes in the US. RJR is merging its US tobacco
business with Brown & Williamson, the third largest US tobacco company.

4)Altair, S.A.
When the smoke finally settles over London, Gallagher Group helps
kick it up again .The #2 UK cigarette company, Gallagher makes tobacco
products and sells them in Asia, continental Europe, Ireland, Russia and other
former Soviet republics, and K. Its premium cigarettes include top UK brands
Benson & Hedges and Silk Cut; mid-priced brands include Berkeley; and low-
priced brands include Dorchester and Mayfair. Gallagher also makes Hamlet
cigars, Amber Leaf hand-rolled tobacco, and Condor pipe tobacco.
5) Gallagher Group Plc (GLH)
When the smoke finally settles over London, Gallagher Group helps
kick it up again. The #2 UK cigarette company, Gallagher makes tobacco
products and sells them in Asia, continental Europe, Ireland, Russia and other
Soviet republics, and the UK. Its premium cigarettes include top UK brands
Binsom & Hedges and Silk Cut; mid-priced brands include Berkeley; and low-
priced brands include Dorchester and Mayfair. Gallagher also makes Hamlet
cigars, Amber Leaf hand-rolled tobacco, and Condor pipe tobacco.

37
6)Carolina Group (CG)
Newport News provides the best read on Carolina Group’s Lorillard
Tobacco, the #4 cigarette maker in the US. Lorillard accounts for about 25% of
parent company Loews’ sales, but more than 85% of the profits. Newport,
Lorillard’s top brand, is the #2 cigarette brand in the US and brings in nearly
90% of Lorillard’s sales; its other brands include Kint, Maverick, Old Gold, and
True. The company has joined the rest of the tobacco industry in reaching legal
settlements with all 50 states. A Florida appeals court overturned a $16 billion
verdict against the company in May 2003.Loews established Carolina Group in
2002 as a tracking stock for its tobacco holdings.

7) Reentsma Cigarette fabric Gmbh

Cigarette maker Reemtsma Cigarette fabric has rolled tobacco since
1910. The German company controls about 29% of its home market and is one
of the largest tobacco companies in Europe. The company produces more than
60 brands, including Davidoff, Peter Stuyvesant, R1, and West. It sells its
cigarettes through affiliated operations in about 100 countries in Asia, Europe,
and the Americas. The UK’s Imperial Tobacco owns Reemtsma.

8)Imperial Tobacco Group PLC (ITY)

The UK’s #1 cigarette maker (ahead of Gallagher Group), Imperial
Tobacco Group has traded up to an even bigger throne. The company’s
purchase of German tobacco firm Reemtsma (Davidoff and West cigarettes)
nearly doubled its size and made it the world’s #4 tobacco company.

38
 Imperial’s brands include Lambert & Butler, the UK’s #1 cigarette, as
well as Castellan cigars, and Amphora and St Bruno pipe tobacco. Its Drum
brand is the #1 hand- rolling tobacco worldwide, and Rizla is a top cigarette
paper. Acquisitions in Australia and New Zealand have assured Imperial’s
presence in emerging markets.

9)UST Inc.(UST)

For UST, the best part of a baseball game is watching the players
spit. A holding company primarily for U.S. Smokeless Tobacco Company, UST
is the US’s largest manufacturer and distributor of snuff and chewing tobacco.
Its brands include Copenhagen, Skoal, Red Seal, and Rooster. The company’s
International Wine & Spirits unit brings in 12% of sales by producing California
wines under the Conn Creek and Villa Mt. Eden labels and premium and
sparkling wines grim Washington under the Chateau Ste. Michelle and
Columbia Crest brands. UST also produces premium cigars (Dom Tomas, A
steal and Helix). Subsidiary UST International sells the firm’s products outside
the US, primarily in Canada.

39
 TRAINING & DEVELOPMENT

INTRODUCTION:
Organization and individual should develop and progress simultaneously
for their survival and attainment of mutual goals. So, every modern
management has to develop the organization through human resources
development. Employee training is the most important sub-system of Human
Resources Development Training is a specialized function and is one of the
fundamental operative functions for human resources management.

MEANING:
After an employee is selected, placed and introduced in an organization
he/she must be provided with training facilities in order to adjust him her to the
job. Training is the act of increasing the knowledge and skill of an employee for
doing a particular job. Training is a short-term Educational process and utilizing
a systematic and organized procedure by which employees learn technical
knowledge and skills for a definite purpose.

DEFINITION:
Dale S beach defines the training as “The organized procedure by which
people learn knowledge and/or skill for a definite purpose’’.

In other words “training improves changes and moulds the employee’s

knowledge, skills, behavior, aptitude and attitude towards the requirements of
the job and the organization. Training refers to the teaching and learning
activities carried on for the primary purpose of helping members of an
organization to acquire and apply the knowledge, skills, abilities and attitude
needed by a particular job and organization. Thus, training bridges the
difference between job requirements and employee’s present specifications.
40
GOAL OF TRAINING:

Training has certain goal, where the main aim is to train the employees
with the best of the knowledge available so that performance achieved to the
maximum and as well, It lead to higher job satisfaction. The questions in this
section have designed to help the owner-manager define the objectives or goals
to be achieved by training program. Whether the objective is to conduct initial
training, to provide for upgrading employees, or to retain for changing job
assignments, the goal should be spelled out before developing the plan for
training program.

 Will you improve your employees by training them to perform their

present tasks better?

 Do you need to prepare employees for newly developed or modified

jobs?

 Do you need to improve the handling of materials in order to break

production bottlenecks?

 Do you need to train employees so they can help teach new workers in an
expansion program?

41
WHAT SHOULD THE EMPLOYEES LEARN?

Once the objective or goal of the program is set, you will need to
determine the course or the subject. The following questions will help us to
decide what the employee needs in terms of duties, responsibilities, and
attitudes.
 Are there standards of quality which trainee can be taught?

 Are there certain skills and techniques that trainees must learn?

 Are there hazards and safety practices that must be taught?

 Are there performance standards that employees must meet?

 Are there attitudes that need improvement or modifications?

 Should the training include information about the location, use tool cribs,
and so on?

 Will the employee need instruction about departments other than his or
her own?

42
TYPE OF TRAINING:

The type of training to be offer has an important bearing on the balance of

the program. Some types lend themselves to achieving all of the objective or
goals, while others are limited. Therefore, you should review the advantages of
each type in relation to your objective or goal.

 Can you train on-the-job so that employees can produce while learn?

 Will a combination of scheduled on-the-job training and vocational

classroom instruction work best for you?

 Can your goal is to be achieving with a combination of on-the job

training and correspondence courses?

METHODS OF INSTRUCTION:

One or more methods of instruction may be used. Some are better for one
type of training than another. For example, lectures are for imparting
knowledge, and demonstrations are good for teaching skills.

 Does the subject matter call for a lecture or series of lectures?

 Should the instructor follow up with discussion sessions?

 Does the subject matter lend itself to demonstrations?

 Can operating problems be simulated in a classroom?

 Can the instructor direct trainees while they are perform the job?

43
IMPORTANCE OF TRAINING:

The importance of human resources management largely depends on

Human Resource Department and training is its most important technique. No
organization can get a candidate who exactly matches with the job and the
organization requirements. Hence, training is important to develop the
employee and make him suitable to the job. Training works towards value
addition to the company through HRD.

Job and organizational requirements are not static; they are changing
from time to time in view of technological advancement and change in the
awareness of the Total Quality and Productivity Management (TQPM). The
objectives of the TQPM can be achieved only through training, which develops
human skill and efficiency. Trained employees would be valuable asset to the
organization. Organizational efficiency, productivity, progress and development
largely depend on training. If the required training not provided, it leads to
performance failure the employees. Organizational objectives like viability,
stability and growth can also be achieved through training. Training is
important, as it constitutes a significant part of management control. Training
enhances 4C’s for the organization viz,

 Competence

 Commitment

 Creativity and

 Contribution

44
BENEFITS OF TRAINING

 Leads to improved profitability and/or more positive attitudes towards

profit organization.
 Improve the morale, job knowledge and skills at all levels of the
organization.
 Aids in understanding and carrying out organizational policies.
 Provides information for future needs in all areas of the organization.
 Organization gets more effective in decision-making and problem
solving.
 Aids in developing leadership skill, motivation, loyalty, better attitudes
and other aspects that’s successful workers and managers usually display.
 Develops a sense of responsibility to the organization for being
competent and knowledgeable.
 Reduces outside consulting costs by utilizing competent internal
consulting - Eliminates sub-optimal behavior such as hiding tools.
 Aids in handling conflict, thereby helping to prevent stress and tension
benefits to the individual, which in turn ultimately should benefit the
organization.
 Through training and development, motivational variables of
recognition, achievements, growth, responsibility and advancement of
internalizes and operationalized.
 Provides information for improving leadership knowledge,
communication skills and attitudes.
 Increases job satisfaction and recognition.

Provides information to understand the situation between inter and intra

relations among the personnel.

45
 NEED FOR TRAINING:

The need for the Training arises due to the following reasons.

1. To match the employee specification with the job requirement and

organizational need:

Management finds deviations between employee’s present specification

and job requirements and organizational needs.

2. Organizational Viability and the transformation process:

The primary goal of most of the organizations is that their viability is

continuously infected by environment procedure.

3. Technological Advances:

Every organization in order to survive and to do effective should adopt

the latest technology, computerization and automation.

4. Organizational complexity:

This creates the complex problem of coordination and integration of

activities adoptable to the expanding and diversifying situations.

5. Human Relations:

Most of the organizations have to maintain human relations besides

maintaining sound industrial relations although higher to the managers’ do not
deal with the workers accordingly.

46
6.Changing the Job Assignment:

Training is also necessary when the existing employee is promoted to the

higher level in the organization and when there is some new job or occupation
due to transfer.

Training is also necessary to equip old employees with the advanced

disciplines, techniques or technology.

The need for training also arises to:

 Improve quality of the product /service, organizational culture, health and
safety.
 Prevent obsolescence and minimize the resistance to change.
 To act as mentor and Increase productivity.

TRAINING OBJECTIOVES:

 To prepare the employees of new and old, to meet the present as well as
the changing requirements of the job of the organization.
 To impart the new entrance the basic knowledge and skills they need for
an intelligent performance of the definite job.
 To assist employees to function more effectively in their present positions
by exposing them to the latest concepts, information and techniques and
developing the skills they will need in their particular fields.
 To promote individual and collective morale, a sense of responsibility,
cooperative attitude and good relationships.
 To ensure economical output of required quality.
 To broaden the minds of senior managers by providing them with
opportunities for an interchange of experience within and outside with a
view to corresponding the narrowness of outlook that may arise from
over-specialization.

47
ASSESSMENT OF TRAINING NEED:

Training need is identified on the basis of organizational analysis, job

analysis and manpower analysis. Training program, training methods and
course content are to be planned on the basis of training needs. Training needs
are those aspects necessary to perform the job in an organization in which
employee is lacking attitude/aptitude, knowledge and skill.

Training Needs=Job and Organizational requirements-Employees Specification

METHODS USED IN TRAINING NEEDS ASSESSMENT:

The following methods are used to assess training,

Group or organizational analysis Individual analysis

Organizational goals and objectives Performance appraisal

Personnel / skills inventories Work sampling

Organizational climate indices Interviews

Efficiency indices Questionnaires

Exit interviews Attitude survey

Quality circles Rating scales

Customer survey / satisfaction data Observation of behavior

Consideration of current and

projected changes.
Individual Group Organizational
Training Need Training Need Training Need

48
TRAINING METHODS:

The Training programs commonly used to train operative and supervisory

personnel in the organization. These training programs are classified into On-
the-job and Off-the-job programs.

Training Methods

-On-the-job Method -Off-the-job Method

-Job Rotation -Vestibule Training
-Coaching -Role Playing
-Job instruction -Lecture Method
-Training through step-by-step -Conference or Discussion
-Committee Assignment -Programmed instruction

ON-THE-JOB TRAINING METHODS:

This type of training, the individual is placed on a regular job and taught
the skills necessary to perform the job. On-the job training has the advantage of
giving firsthand knowledge and experience under the actual working conditions.

Job Rotation:
This type of training involves the movement of the trainee from the one
job to another. The trainee receives job knowledge and gains experience form
his supervisor in each of the different job assignment. Though this method of
training is common training managers for the general positions, trainees can
also be rotated from job to job in workshop jobs.

49
Coaching:
This trainee is placed under a particular supervisor who functions as
coach in training the individual the supervisor provides to the trainee in his
performance and offers his suggestions for improvement.

Job instruction:
This method is also known as training through step by step. Under this
method, the trainer explains to the trainee the way of doing the jobs, job
knowledge and skills and allows him to do the job.

Committee Assignment:
Under this method, a group of a trainee are given and asked to solve the
actual organizational problem. The trainees solve the problem jointly. It
develops team work.

OFF-THE-JOB TRAINING METHODS:

This type of training, the trainee is separated from the job situation and
his attention has focused upon learning the material to his future job
performance. Since the trainee distracted by job requirement, he can place his
entire concentration on learning the job rather than spending his time in
performing.

Vestibule Training method:

In this method, actual work conditions are simulated in a classroom.
Material, files and equipment, which are used in actual job performance, are
also used in training. This type of training is commonly used for training
personnel for clerical and semi skilled jobs.

50
Role Playing Method:

It is defined as a method of human interaction that involves realistic

behavior in imaginary situation. This method of training involves action, doing
and practice.

Lecture Method:

The lecture is a traditional and direct method of instruction. The

instructor organizes the material and gives it to a group of trainee in the form of
talk. To be effective, the lecture must motivate and create interest among the
trainees.

Discussion:

It is method is training the clerical, professional and supervisory

personnel. This method involves a group of people ideas, examine and share
facts, ideas and data, test assumptions and draw conclusions, all of which
contribute to the improvement of job performance.

Programmed Instructions:

In the recent years, this, method has become popular. The subject matter
to be learned is present in a series of carefully planned sequential units. These
units are arranged from simple to more complex levels of instruction. The
trainee goes through these units by answering questions or filling the blanks.
This method is expensive and time consuming.

51
TRAINING PROCEDURE:

The following training procedure is essential an adoption of the job

instruction training course, which has been proved to have great values. The
important steps in the training procedure are:

1. PRERARING THE INSTRUCTOR:

The instructor must know both the job to be taught and how to teach it.
The job must be divided into logical parts so that each can be taught at a proper
time without the trainee-losing plan. For each part, one should have in mind the
desired technique of instruction, that is, whether a particular point is best taught
by illustration, demonstration or explanation.

A series and committed instruction must:

 Know the job or subject he is attempting to teach.

 Have the aptitude and ability to teach and willingness towards the profession.

 Have a pleasing personality and capacity for leadership.

2. PREPARING THE TRAINEE:

As in interviewing, the first step in training is to attempt to place the

trainee at ease. Most people are somewhat nervous when approaching an
unfamiliar task. Though the instructor may have executed this training
procedure, many times he or she never forgets its newness to the trainee. The
quality of empathy is a mark of the good instructor.

52
 3.GETTING READY TO TEACH:

This stage of the program is class hour teaching involving the following
activities:

 Planning the program

 Preparing the instructor’s outline.

 Don’t try to cover too much material

 Keep the session moving along logically

 Discuss each item in depth

 Repeat, but in different words.

 Take care, the material form standardized texts when it is available.

 When the standardized text is not available, develop the program and
course content based on group consists of employer, skilled employees,
supervisors trade union leaders and other familiar with job requirements.

 Teach about the standard for the trainee like quality, quantity, waste or
scrap ability to work without supervision, knowledge or procedure, safety
rules, human relations etc.

53
 4. PRESENTING THE OPERATION:

There are various alternative ways of presenting the operation viz,

explanation; demonstration etc. an instructor mostly uses these methods of
explanation In addition, one must illustrate various points through the use of
pictures, charts, diagrams and other training aids.

5. TRY OUT THE TRAINEE’S PERFORMANCE:

As a Continuation of the presentation sequence given above, the trainee

should be asked to start the job or operative procedure, Some instructor prefers
that the trainee explain each step before doing it, particularly if the operating
involves any danger. The trainee, through respective practice will acquire more
skill.

6. FOLLOW UP:

The final step in most training procedures is that of the follow-up. When
people are involved in any problem or procedure, it is unwise to assume that
things are always constraint. Follow-up can be adapted to a variable
reinforcement schedule as suggested in the discussion of learning principles,
every training program should have a follow-up; otherwise the training
programs in the future can’t be improved.

After making the above steps the trainer has to follow the following steps.

54
1.TRAINING NEEDS IDENTIFICATION:

The training need for all employees is identified either by the respective
HOD’s or by the top management during the performance appraisal process or
updating the skill / competency matrix.
2. PREPARING A TRAINING PLAN:

Based on the above input the training plan is prepared by the HR

Manager once in a year and gets it approved by HR Manager. While preparing
the training plan the back long from the previous year training plan is also
added. The training plan is reviewed and updated in the HRM.

3. PREPARING A TRAINING CALENDAR:

The participant list is categorized into batches and based on the training
period; the calendar is prepared batch wise by the HR Manager and circulated to
the participants for information. In case of any changes the same is modified
and intimated to the concerned personnel.

4. EXECUTION OF TRAINING AS PER THE TRAINING CALENDAR:

For the internal training programs, the trainers are selected from the list
of trainers. In case of external training programs, the profile of the trainer is
received and reviewed by the HR Manager. The HR manager and the trainer
arrange the venue & the course material required for the program. The dates
are finalized based on the availability of the trained and the same is
communicated to the participants. In case of any change the program the same
is communicated to both the trainers and the participants.

55
5. TRAINING FEEDBACK FROM THE EMPLOYEES:

On completion of the training program all the employees fill up the

feedback form and hand over to HR Manager.

6. EVALUATION OF THE TRAINING IMPARTED:

After the target date mentioned in the feedback form, the HR Manager
evaluates the effectiveness of the training imparted through the respective HOD.
If the results are satisfactory then the employee’s skill matrix is updated else the
employee is recommended for re-training.

TRAINING NEEDS ASSESSMENT

At start of every financial year, training needs of employees will be

identified approved by the appropriate authorities based on factors such as
recruitment, transfers, promotions, capacity expansions, etc as follows.
1. Performance apprised, which is carried out annually.

2. Job description forms, which are carried out annually.

3. General recommendations from HOD or section head.

4. Comments of HOD in the earlier training feedback and training impact

assessments evaluation form, if any.

5. Immediate supervisor will assess the probationary evaluation from

following traits will be consider to assess the employee.

 Job knowledge & Performance achievements

 Planning skills

56
  Organizing skills & Communication skills

 Flexibility or team organization & Documentation

 Leadership qualities & Adoptability

Based on the above, the factories HRD will prepare annual training plan
and send it to corporate HRD. Corporate will prepare a consolidated annual
training and plan for the company and certain the approval based on the annual
training plan. HRD will arrange training plan.

PROCEDURE FOR SPONSORING EMPLOYEES FOR TRAINING

PROGRAMS:

 Once a person is individual for external training the respective HOD will
have detailed discussions with the employee in the presence of HR
representative to inform the contents of program its usefulness, and the
desired outcomes from the employees after attending the programmed.

 Once the employees comeback from the training program, again the
respective HOD will-have a discussion with employee in presence of HR
representative, to discuss the above his action plan for implementing the
learnt points.

 The employees shall submit a report along with his action plan within a
fortnight after attending the program.

 The HOD should also ensure that the learned points are disseminated.

 HR representative will follow with HOD, for smooth implementations of

the same, thus ensuring that other colleagues in the department and
organization gains maximum benefit from the training programming.

57
  Employees sponsor for training programming with the duration of one
day or more shall make a presentation to his colleagues on the learning
points.
DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT:

S.NO Area Training Development

Technical skills and Managerial and behavioral

1. Content
knowledge skills and knowledge’s

Conceptual and general

2. Purpose Specific job – related
knowledge

3. Duration short-term Long-term

Mostly technical and non- Mostly for managerial

4. For whom
managerial personnel personnel

58
RECENT DEVELOPMENT IN TRAINING:
EMPLOYEE SELF INITIATIVE:

Employees have realized that changes are the order of the day and they
have started playing the role of change agent consequently, employees identify
their own training programmers organized by various organizations and
undergo the training programmers. Thus, employees in recent times started
taking proactive leaning measures on their own.

ONLINE TRAINING:

Companies started providing online training. Trainees can undergo

training by staying at the place of work & participate complete course work
from whenever they have assessed to computer and internet. Different types of
media are used for online training.

MANAGEMENT DEVELOPMENT:

Organization provides managerial skills to its employees at all levels, in

addition to technical skills. Managerial skills are provided through management
development programs where as technical skills are provided through training.

Management Development is a systematic process of growth and

development by which the managers develop their abilities to mange. So, it is
the result of not only participation in formal courses of instructing but also of
actual job experience. It is concerned with improving the performance of the
managers by giving them opportunities for growth and development, which in
turn depends on organization structure of the company.

59
ROLE OF THE ORGANIZATION:
“The role of the company in management development is to establish the
program and the development opportunities for its present and potential
managers.”

“Executive development is eventually something that the executive has to

attain himself. But he will do this much better if he is given encouragement,
guidance and opportunity by his company.”
OBJECTIVES OF MANAGEMENT:
The management development programs are organized with a view to
achieving specific objectives they area:

 To improve the performance of the managers.

 To give the specialists on overall of the functions of an organization and

equip them to co-ordinate each other’s efforts effectively.
 For identify the persons with the required potential and prepare them for
senior position.

 To increase the versatility, analytical skills and morale among the

managements.

 To understand the conceptual issues relating to economical social and

technical areas.

 To keep the executive adjust with the changes and developments in their
respective fields.

60
NEED FOR MANAGEMENT DEVELOPMENT:

The need for management development program arises due to the

following reasons.

I. Efficient functioning public utilities, transport, communications, etc.

Depends on professionalization of management in the sectors.

II. Human resources development of the managers in multiple areas

necessities the executive development program.

III. The intensive competition and consequently upon employment of various

grand strategies by various business organizations necessitates the
development of managers.

IV. The emergence of new concepts in management likes TQM, enterprise

resources planning, and business process reengineering empowerment,
etc. necessitates the management to offer developmental programs.

PRINCIPLES OF MANAGEMENT DEVELOPMENT:

The top management of a company should follow certain principles to

make the management development programs effective. They are

1) The management should asses the development needs of its managers at

different levels through performance analysis and development methods.

2) Management should decentralize the responsibility of developing the

managers of different departments/units and make the head of the
department unit responsible for it.

61
 3) Management should integrate career planning and development of the
organization with the management development programs.

4) Management should encourage the manager to take up programs on his

or her own in addition to the company sponsored programs.

5) It should concentrate on latest management concepts and principles.

METHODS OF MANAGEMENT DEVELOPMENT:

There are mainly two types of methods by which managers can acquire
the knowledge, skills and attitudes and make themselves competent managers.

Methods

Formal Training On-the-job experience

-The case study -Coaching
-Incident method -Job rotation
-Role-playing -Under study
-In-basket method -Multiple of mgt.
-Business Game
-Sensitivity Training
-Simulation
-Grid Training
-Conference
- Lectures

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FORMAL TRAINING:

COACHING:

The coaching, the trainee is placed under a particular supervisor who acts
as an instructor and teaches job knowledge and skills to the trainee. If he feels
what he wants him to do, how it can be done and follows up while it is being
done corrects errors.

JOB ROTATION:

The transferring of executives from job to job and form department to

department in a systematic manner is called job rotation. When a manager is
posted to a new job as part of such a program, it is not merely an orientation
assignment. He has to assume the full responsibility and perform all kinds of
duties.
UNDER STUDY:

“An understudy is a person who is in training to assume as a future time,

the full responsibility of the position currently held by his superior”. This
method supplies the organization a person with as much competence as a
superior to fill his post, which may fall vacant because of promotion, retirement
or transfer.

MULTIPLE OF MANAGEMENT:

Multiple of management is a system in which permanent advisory

committees of managers study problems of the company and make
recommendations with the higher management. It is also called junior board of
executive system.

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OFF-THE-JOB METHODS:
Off-the-job techniques are considered important to fill on-the-job
technique limitations.

CASE STUDY:
The cases are prepared on the basis of actual business situations that
happened in various organizations. The trainees are given cases for discussing
and deciding upon the case. Then they are asked to identify the apparent and
hidden problems for which they have to suggest solutions.

INCIDENT METHOD:
It aims to develop the trainee the areas of intellectual ability, practical
judgment and social awareness. Incident is prepared on the basis of actual
situations it’s happened in dialogue organizations.

ROLE PLAYING:
Asking the participant to assume the role of a particular person in the situation
simulates a problem situation. The participant interacts with other participants
assuming different roles. The mental set of the role is described but no dialogue
is provided.

SENSITIVITY TRAINING:
The main objective of the sensitivity training is the “development of
awareness of and sensitivity of behavioral patterns of one self and others”. This
development results in the
I. Increased openness with others
II. Greater concern for others
All the above development programs have been implanting in the organization
to reach the goals and objectives irrespective category of the personnel.

64
SCOPE OF THE HUMAN RESOURCE MANAGEMENT

The scope of HRM is indeed vast. All major activities in the working life
of a worker from the time of his or her entry into an organization until he or she
leaves — come under the purview of HRM. Specifically the activities included
are — HR planning, job analysis and design, recruitment and selection,
orientation and placement, training and development, performance appraisal and
job evaluation, employee and executive remuneration, motivation and
communication, welfare, safety and health, industrial relations (IR) and the like.
For the sake of convenience, we can categorize, we can categorize all these
functions into seven sections,

1. Introduction to HRM

2. Employee hiring

3. Employee and executive remuneration

4. Employee motivation

5. Employee maintenance

6. IR, and

7. Prospects of HRM

65
DEFINITIONS OF HUMAN RESOURCE MANAGEMENT

According to French:

“Human resource management is the recruitment, selection, development,

utilization and accommodation of human resources by organizations. The
human resource of an organization consists of all individuals regardless of their
role, who are engaged in any of the organization’s activities”.

According to Flippo:

Human resource management is “the planning, organizing, directing and

controlling of the procurement, development, compensation, integration,
maintenance and reproduction of human resources to the end that individual,
organizational and societal objectives are accomplished.”

According to Miikovich and Boudrean:

Human resource management is a “series of integrated decisions that

form the employment relationship, their quality contributes to the ability of the
organizations and the employees to achieve their objectives”.
Human resource management is a management function that helps managers
plan, recruit, select, train, develop, remunerate and maintain members of an
organization. It is concerned with the people’s dimension in organizations.

Human resource managements is known by different names, such as

personnel management, manpower management, staff management and
knowledge management etc.

66
FEATURES OF HUMAN RESOURCE MANAGEMENT

1. Human resource management is a part of management discipline.

2. Human resource management is a process, just like management process.

3. Human resource management is a continuous process and not a one-stop

action.

4. Human resource management is concerned with people in the organization,

both present and potential.

5. Human resource management is directed towards achievement of

organizational objectives by providing tools and techniques of managing people
in the organization effectively.

6. Human resource management is relevant to all functional areas of a business

organization, such as, production, marketing, finance, research and
development, etc.

67
PRINCIPLES OF HUMAN RESOUCE MANAGEMENT

(1) Principle of maximum individual development.

(2) Principle of scientific selection.

(3) Principle of high morale.

(4) Principle of dignity of labour.

(5) Principle of team spirit.

(6) Principle of effective communication.

(7) Principle of fair remuneration.

(8) Principle of effective utilization of human resources.

(9) Principle of participation.

(10) Principle of contribution to national prosperity.

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HUMAN RESOURCES

From the national point of view:

Human resources are knowledge, skills, creative abilities, talents and

attitudes obtained in the population.

From the view point of an organization:

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 refer to “a whole consisting of inter-related,

interdependent, and interacting physiological, psychological, sociological and
ethical components”.

According to Sumantra Ghoshal:

Human resources as human capital consisting of three types of capital,

namely, intellectual capital, social capital and emotional capital.

Features of Human Resources:

 Human resources are heterogeneous.

 Human resources are dynamic and behave differently.

69
  Human resources have the greatest potential to develop and grow
provided the right climate is provided to them.

SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT

Human resources are the most precious assets of an organization. They

are activators of non-human resources, means of competitive advantages and
source of creativity provided they are managed effectively. Human resource
management, thus, has great significance.

The significance of human resource management can be discussed at four

levels — organizational, professional, social and national.

I. Organizational significance:
1. Attracting and retaining the required talent through effective human
resource planning, recruitment, selection, placement, orientation,
compensation and promotion policies.

2. Developing the necessary skills and right attitudes among the employees
through training, development, and performance appraisal, etc.

3. Securing willing co-operation of employees through motivation,

participation, grievance handling, etc.

4. Utilizing effectively the available human resources.

5. Ensuring that the organization will have in future a team of competent

and dedicated employees.

70
II. Professional significance:

1. Developing people on continuous basis to meet the challenges of their

jobs.
2. Maintaining the dignity of personnel at the work place.
3. Providing proper physical and social environment at the work place to
utilize the capabilities of the people effectively.
4. Providing environment and incentives for developing and utilizing
creativity.

III. Social significance:

1. Maintaining balance between jobs and job-seekers in terms of job
requirements and job-seekers abilities and attitudes.

2. Providing most productive employment from which socio-psychological

satisfaction can be derived.

3. Utilizing human capabilities effectively and matching rewards for the

contributions made by people.

4. Eliminating wasteful organizational and individual practices.

IV. National significance:

1. Increase in the size and complexity of organizations.

2. Rapid technological developments like automation, and
computerization etc.
3. Rise of professional and knowledgeable workers.

71
 INTRODUCTION

People need competence to perform tasks. The nature of the job is

constantly changing due to changes in the environment, changes in
organizational priorities, goals and strategies, changes in technology etc., higher
degree and quality of performance of tasks requires higher level of competence
in people of an organization is essential to achieve the organizational goals and
objectives. One of the important mechanism of HR Department is that
TRAINING, which is a commonly used term which has a wide variety of
connotations depending on one’s experience and background.

Training and development programs are necessary in any organization for

improving the quality of work of the employees at all levels particularly in a
word of fast changing technology, changing values and environment. The
purpose of both is similar, the main difference between the two is in respect to
the level of employees for whom these are meant and contents and techniques
employed.

72
 HUMAN RESOURCE MANAGEMENT

Meaning:

Human Resource Management (HRM) is a management function that helps

mangers recruit, select, train and develops members for an organization. Obviously,
HRM is concern with the people’s dimension in organizations.

Human resource management refers to a set of programs, functions and

activities designed and carried out in order to maximize both employees as well as
organizational effectiveness. It is the process of binding people and organizations
together so that the objectives of each are achieved.
HRM involves the application of management function and principles. The
functions and principles are applied to acquisitioning, developing, maintaining, and
remunerating employees in organizations.

Human resource management means employing people, developing their

resources, utilizing, maintaining and compensating their services in tune with job and
organizational requirements. HR is the most significant factor of production every
human being is born with tremendous potential. HR refers to the knowledge, skills,
and beliefs of an organizations workplace. Enhance their skills, abilities, knowledge in
accordance with the changing requirements of groups, organization and society is the
essence of HRD.

Human Resource Development (HRD) is a continuous process to ensure the

development of employee dynamism, effectiveness, competencies and motivation in a
systematic and planned manner.
HRD includes potential development, fast achievement, skill development,
ability to reach out, systems development, understanding of subordinates goals,
greater commitment existing and creating climate, developing integration etc. One of
the important mechanisms of HRD is training and development.

73
 OBJECTIVES OF STUDY

The main objective of the study is as follows

1. To understand the need and importance of the concept T & D and its

relevance in the present day organization.

2. To analyze the effectiveness of training for the employees in ITC

Limited-Agri Business Division, ILTD, Chirala and to identify training

gaps if any.

3. To understand the process of evaluation of training and to analyze its

effectiveness.

4. To make Suggestions and Recommendations to improve the existing

training Program and its Evaluation process.

74
 SCOPE OF THE STUDY

The Scope of the study is confined to Training and Development of

Supervisors, Technicians and Employees. To know the function of the

organization as a whole and as well to know the policies how are made and

implemented and conveyed to the employees. The study is to know in brief

about the following departments.

 Training and Development Center.

 Human Resource Development Department.

The following departments were approached for survey during the project.

 Production Department.

 Quality Control Department

 Manufacturing Department

SIGNIFICANCE OF THE STUDY

To gain an insight into the training methodologies implemented in an

organization. At the same time to learn the practicality of evaluating the training

Programs. For the academic purpose of Master of Business Administration, I

have approached the ITC Limited-Agri Business Division, ILTD, Chirala to

study effectiveness of the Training and Development programs for exploring

my skills and knowledge.

75
 LIMITATIONS

The study has confined to ITC limited agri business division – ILTD to
training and development programs. In a view of time constraint the study has
shorter period. Information regarding the outcome of training and development
program would be evaluated on general terms but not on scientific terms.

 The time constraint there to study all the policies of ITC limited agri
business division – ILTD.

 This survey is only meant for academic purpose because total survey is
not possible.

The following reasons have been treated for the study.

 Due to constraint of time, the study was conducted with limited sample
size.

 The accuracy of analysis and conclusions drawn entirely depends upon

the reliability of information provided by employees.

 In the fast moving/ changing employee’s behavior, many new and better
thing may emerge in the near future, which cannot be safe guarded in the
report.

 Due to hesitation some of the respondents are hesitated to give responses

to questionnaire.

Data collected cannot be free from errors because of bias on behalf of the
respondents.

76
 RESEARCH METHODOLOGY

Primary source

Survey method was adopted to collect the data. Survey method is

concerned with describing, recording, analyzing & interpreting existing
conditions. The data is collected from primary and secondary sources.
Collection of the data is primary aspect in the research process. Data, which is
collected for the purpose of research, helps in proper analysis to develop
findings, which are helpful to conduct research effectively. The data source,
which is very important in the collection of data, is both primary and secondary.

Secondary source

Secondary data is one which has been already existed, company profiles,
broachers, records & websites.

Various factors are included in the questionnaire to get necessary

information and enough care was taken into consideration while framing out the
questionnaires.

Sample plan

It includes sample unit, sample size, procedure of sample and the research
instrument.

77
Sample size

It constitutes the number of respondents to the study.

Thus 100 employees are the sample size taken.

Sampling procedure

Simple random sampling.

Research instrument

Personal interviews with the aid of structured questionnaire.

The data used in the project is attained through both Primary and Secondary

research.

The Research Methodologies that have been employed are as

follows:

1. Primary data on the training programmes for Managers Supervisors and

Employees conducted at ITC Limited-Agri Business Division, ILTD,

Chirala and their evaluation was collected through interview and direct

observation at the organization.

2. Secondary data was collected from referring to internet and Journals.

3. The concept of training and development is extracted from various books.

78
 DATA ANALYSIS AND INTERPRETATION
1. What are the methods followed to identify the training and development
needs?
Methods No of respondents %
Interviews 5 5
questionnaire 15 15

Direct observations 20 20
Performance appraisal 60 60

Total 100 100%

Identifying the training needs

15

INTERVIEWS
QUESTIONNAIRE
DIRECT OBSERVATIONS
60 20 PERFORMANCE APPRAISAL

INFERENCE:
From the above table it is revealed that performance appraisal and direct
observations are the two commonly used methods in the organization to identify
training and development needs. Among these two methods, performance
appraisal method is used more to identify training and development needs.

2. What is your opinion about the training needs assessment for the
trainees?
79
 Opinion No of respondents %
Strongly agree 70 70
Agree 25 25
No idea 3 3
Disagree 2 2
Total 100 100%

Training Need Assessment for the trainees

80
70
60
50
40
70
30
20
10 25 3 2
0
Strongly agree Agree No idea Disagree

INFERENCE:
From the above diagram, it is revealed that 70% of the employees were
strongly agree, 25% of the employees agree to the organization for the
assessment of the training program to the trainees.

80
3. What is your opinion about the budget allocation for the training &
development programmes?

Opinion No of respondents %
Excellent 70 70
Good 25 25
Adequate 3 3
Poor 2 2
Total 100 100%

Budget Allocation for the Training and Development Program

80 70

60

40
25
3
20 2
0

Excellent
Good
Adequate
Poor

INFERENCE:
From the above diagram, it is felt that 70% of the employees felt excellent, 25%
of the employees were felt well and rest of the employees felt satisfied with
allocation of budget for the training and development programs.

81
 4. What according to you are the basic needs of Training &
Development in your organization?

Basic needs No of respondents %

For advancement & 90 90
technology
To produce quality 10 10
products
To decrease wastage 0 0
For improvement of 0 0
employees
Total 100 100%

Basic needs of Training and Development Program

0 0
10

For advancement & technology

To produce quality products
To decrease wastage
90
For improvement of employees

INFERENCE:

From the above diagram, it is observed that Advancement and technology

is the one major basic need of training and development in this organization,
i.e., major 90% of the respondents felt this is the basic need of Training and
Development in the organization.

82
 5. What are the skills you find important for your professional
development?

Skills No of respondents %
Presentation skills 10 10
Communication skills 80 80
Negotiation skills 5 5
Technical skills 5 5
Total 100 100%

Important skills for professional development

80
80

60

40

20 10

0 5
5
Presentation skills %
Communication
skills Negotiation skills
Technical skills

INFERENCE:

From the above diagram, it is deserved that communication skills are the
most important skills, which the respondents fell most important for the
professional development.

83
 6. Are you satisfied with the orientation & training program
received by you at the time of joining this organization?

Opinion No of respondents %
Highly satisfied 80 80
Satisfied 10 10
Neutral 8 8
Dissatisfied 2 2
Total 100 100%

Satisfaction levels with orientation and training program

100%
80%
60% 80
40% 10 8
20% 2
0%

INF Highly
Satisfied
satisfied Neutral
Dissatisfied

INFERENCE:

Among the total 100 respondents, 80% were very satisfied with the
orientation and training program received by them at the time of joining the
organization. And nobody was very dissatisfied with the orientation and training
program in the organization

84
 7.What are the key areas of training & development that are
provided in the organization at present?

Key areas No of respondents %

Leadership training 50 50
Technical training 40 40
Personal development 5 5
Safety training 5 5
Total 100 100%

Key areas of Training and Development

5
5
50

40

Leadership training
Technical training
Personal development
Safety training

INFERENCE:

Among the total 100 respondents, 50% think Leadership Training and 40%
think Technical training are the most important key areas of Training and
Development in this organization

85
8.What is your opinion about the internal & external faculty in the training
& development program?

Opinion No of respondents %
Excellent 80 80
Good 10 10
Adequate 8 8
Poor 2 2
Total 100 100%

Internal & External faculty in the Training and Development Program

10
Excellent
Good
Adequate
Poor

80

INFERENCE:

From the above diagram, it is observed that 80% of the employees were
responded and felt excellent with the internal and external faculty and
remaining was satisfied with the internal and external training program.

86
9. How was your interaction with the supervisors during the training
program?

Interaction No of respondents %
Motivate 70 70
Friendly 20 20
Work environment 5 5
Satisfactory 5 5
Total 100 100%

Interaction with Supervisors

80
70
70

60

50

40

30
20
20

10 5 5

0
Motivate Friendly Work environment Satisfactory

INFERENCE:

From the above diagram, 70% of the employees responded motivate, 20%
of the employees responded for friendly nature 5% of the employees felt work
environment and remaining were satisfied with the interaction of the personnel
in the organization.

87
 10.Are you satisfied with the training techniques used in the training
program?

Opinion No of respondents %

Yes 90 90

No 10 10

Total 100 100%

Opinion about Training Techniques

10

Yes
No

90

INFERENCE:

From the above diagram I felt that 90% of the employees were felt very
good and rest 10% of the employees were unhappy with the training techniques,
which was used by the trainer during training period.

88
 11.How do you feel about your work place?

Opinion No of respondents %
Excellent 80 80
Good 10 10
Fair 10 10
Poor 0 0
Total 100 100%

Opinion about work place

90
80
70
60
50
40 80
30
20
10
10 10
0
Excellent Good Fair Poor

INFERENCE:

From the above diagram, it is revealed that most of the respondents felt
excellent with the work place and remaining were satisfied with the work place
in the organization

89
 12.What is the main objective of training and development according to
your organization?

Main objective No of respondents %

For advancement and
70 70
technology
To produce quality
20 20
products
To decrease wastage 0 0
For the development of
10 10
employers and employees
Total 100 100%

Main Objective of Training and Development

80 70

60

40
20
20
0 10
0

For
advancement To produce
quality To decrease
and technology wastage For the
products
development
of employers
and employees

INFERENCE:

From the above diagram, it is observed that most of the respondents felt for
advancement and technology and for the development of employers as well as
employees are the main objective of training and development in the
organization.

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 13.Do you feel that the training program contribute to better
performance of the equipment/ plant by reducing maintenance costs &
break downs?

Opinion No of respondents %
To full extent 10 10
To the extent possible 10 10
To some extent 80 80
Not at all 0 0
Total 100 100%

Opinion about Training program contribution

90
80
70
60
50
40 80
30
20
10
10 10
0 0
To full extent To the extent possible To some extent Not at all

INFERENCE:
From the above diagram, it is felt that training program had contributed to
the full extent to better performance of the equipment/plant by reducing
maintenance costs and break downs.

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14. How do you feel after the training program?

Opinion No of respondents %
Feeling high
30 30
responsibility
Getting more
0 0
recognisation
Able to gain better
40 40
performance
Improvement in tech
30 30
nical skills
Total 100 100%

Opinion about training program after receiving it

40 40
30
30
30
20
10
0
0

Feeling high
responsibility Getti ng more
recognisation Able to gain better
performance Improvement in
tech nical skills

INFERENCE:
From the above diagram, it is observed that major percent of respondents
had felt able to gain better performance and improvement in technical skills
after receiving the program.

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15. How are you satisfied with the training evaluation procedures used in
your organization?

Opinion No of respondents %
Excellent 80 80
Very good 10 10
Good 10 10
poor 0 0
Total 100 100%

Opinion about training evaluation, procedures

10 0

10 Excellent
Very good
Good
poor

80

INFERENCE:
From the above diagram, it is observed that most of the respondents felt
excellent and remaining were satisfied with the training evaluation procedures
used in the organization.

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 FINDINGS

From the “A STUDY ON TRAINING AND DEVELOPMENT IN ITC

LIMITED AGRI BUSINESS DIVISION ILTD, CHIRALA” and I hardly find
out the following things, which are got by using several methods and
techniques.

 Above 3/4th of the employees were thorough knowledge on training and

development programs, and remaining have also aware on these
programs.
 The training assessment program must be needed to the employees.

 Most of the employees were expressed excellent budget allocation

amounts for the training & development program.

 Most of the employees are satisfying with the training and development
program in organization.

 Most of the employees satisfied and very limited employees were not
satisfied with the programs to accelerate their skills and knowledge.

 The organization providing the welfare facilities to the personnel

adequately.

 All most of all the employees are satisfying with the internal and external
faculty in the training programs.

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 SUGGESTIONS

 Proper modern training methods should be introduced in the company to

increase the efficiency of the workmen and increase their productivity.

 Incentives should be given to encourage the employees to work more and

more efficiently.

 Proper budget allocation should be done for training and development.

Especially development programs have to be effectively planned to avert

any future problems.

 Training regarding the safety measures to be taken in the company by the

workmen and supervisors has to be properly planned and given to them.

The workmen should be seen to that they follow the safety measures

thereby mentioned.

 On the job training should be provided to technicians and workmen by

the trainers in the plant so that they can understand the process properly

(practical sessions).

 It should be compulsory for all the workers to attend the training

programs and make sure to tell them how important are the training

programs for their safety and growth.

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 CONCLUSION

Every organization needs to have trained and experienced people to

perform the activities that have to be done. In rapid changing society, employee
training and development is not only an activity but also an activity that an
organization must commit resources to if it is to maintain a viable and
knowledgeable work force.

Training is the act of increasing the knowledgeable and skill of an

employee for doing a particular job. It is concerned with imparting specific
skills for particular purpose. When we teach a person how to assemble two
objects and tighten a net, we are training him to do specific job.

Training is a process of learning a sequence of programmed behaviorist

is applicable of knowledge it gives people an awareness of rules and procedures
to guide their behavior.
Evaluation of training process would help in measuring the effectiveness
of training and would help in measuring the effectiveness of the training and
would further help in improving the training methodologies.

The study of T&D is very important in present highly competitive

world. To maintain effectively in internal and external environment of the
organization T&D is very important.

In our short research in ITC Limited-Agri Business Division, ILTD,

Chirala we confine our study to the training and development for skilled,
unskilled and semi skilled.

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 QUESTIONNAIRE

I am P. PRABHU KUMAR, M.B.A. Final year student of YVU College. This

information is required for successfully completion of my project work “A
STUDY ON TRAINING AND DEVELOPMENT IN ITC LIMITED AGRI
BUSINESS DIVISION ILTD, CHIRALA”I. request you to kindly spare
some of your time and fill the questionnaire below.

1. What are the methods followed to identify the training and development
needs?
A. Interviews B. questionnaire
C. Direct observations D. Performance appraisal

2. What is your opinion about the training needs assessment for the
trainees?
A. Strongly agree B. Agree C. No idea D. Disagree

3. What is your opinion about the budget allocation for the training &
development programmes?
A. Excellent B. Good C. Adequate D. Poor

4. What according to you are the basic needs of Training & Development in
your organization?
A. For advancement & technology B. To produce quality products
C. To decrease wastage D. For improvement of employees

5. What are the skills you find important for your professional
development?
A. Presentation skills B. Communication skills
C. Negotiation skills D. Technical skills

6. Are you satisfied with the orientation & training program received by
you at the time of joining this organization?
A. Highly satisfied B. Satisfied C. Neutral D. Dissatisfied

7.What are the key areas of training & development that are provided in
the organization at present?
A. Leadership training B. Technical training
C. Personal development D. Safety training.

8.What is your opinion about the internal & external faculty in the training
& development program?
A. Excellent B. Good C. Adequate D. Poor
97
9. How was your interaction with the supervisors during the training
program?
A. Motivate B. Friendly C. Work environment D. Satisfactory

10.Are you satisfied with the training techniques used in the training
program?
A. Yes B. No

11. How do you feel about your work place?

A. Excellent B. Good C. Fair D. Poor

12. What is the main objective of training and development according to

your organization?
A. For advancement and technology B. To produce quality products
C. To decrease wastage D. For the development of employers and employees

13. Do you feel that the training program contribute to better performance
of the equipment/ plant by reducing maintenance costs & break downs?
A. To full extent B.To the extent possible C. To some extent D. Not at all

14. How do you feel after the training program?

A. Feeling high responsibility B. Getting more recognisation
C. Able to gain better performance D. Improvement in technical skills

15. How are you satisfied with the training evaluation procedures used in
your organization?
A. Excellent B. Very good C. Good D. poor

98
 Bibliography

Websites
 www. ITC products in India.com
 www. ITC .com
 www.Google.com

Other References:-

 Unit Employees.
 various journals, publications, reports.

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