project by asad salim khan

8/7/2019 Project by Asad Salim Khan

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A REPORT ON

Critical Analysis of the Training process at Hutch in

reference with the Management change due the

acquisition by Vodafone in Hutch (UPE)

By

ASAD SALIM KHANCOURSE: MASTER OF BUSINESS ADMINISTRATION

ROLL NO. 510737537

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PROJECT TITLE:

Critical Analysis of the Training process at Hutch in reference withthe Management change due the acquisition by Vodafone in

Hutch (UPE)

CERTIFICATE

This to certify that the project titled- Critical Analysis of the trainingProcess at Hutch in reference with the management Change due to theacquisition by Vodafone in Hutch (UPE) is, a bonafide work of AsadSalim Khan is original and has been done under my supervision. I ampleased to say that his performance during the period was satisfactory.

MR. AMIT KUMAR SRIVASTAVAFACULTY

PCTI,

LUCKNOW.

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DECLARATION

I hereby declare that this Interim project entitled Critical Analysis of the

Training Process at Hutch in reference with the Management Change dueto the acquisition by Vodafone in Hutch (UPE) is my work, carried underthe guidance of my Faculty guide MR. Amit Kumar Srivastava.

ASAD SALIM KHAN

(ROLL NO. 510737537)

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TABLE OF CONTENTS

Acknowledgement 5

Need analysis 6Objective 7

Research Design 8

Introduction 9

Performance Appraisal 44

Performance Appraisal Process (Hutch) 46

Performance Appraisal Process (Vodafone) 47

T&D Process 48T&D Process (Hutch) 52

T&D Process (Vodafone) 53

Conclusion 55

Reference 56

Annexure 57

Limitations 60

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ACKNOWLEDGEM

ENTI thank my Faculty Guide, Mr. AMIT KUMAR SRIVASTAVA

for his encouragement, contribution of time, counsel and

materials. I am also thankful to Principal Sir for coordinating the

project work and giving me the guidance. This Project would

not have been possible without their help.

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NEED ANALYSISWhile doing my Internship I saw employees of Hutch talking

about the ongoing Management Change due to the acquisition

by Vodafone. Actually there was a ripple effect in the Mind of

the Employees regarding the Consequences this change willbring in their working, Environment and the Culture.

Since I was doing my Summer Internship under HR Head, and

as my initial project was Performance management andTraining & Development. I thought to make my thesis on a

Topic which will cover the feeling of employees on this

management change; about how this Management change will

bring changes in Performance Appraisal Process and theTraining & Development Process in the company. Hence, I

opted out for this Topic.

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ObjectiveThe main objective of the study was to accomplish the followingobjectives:

Proper understanding and analysis of Performance AppraisalProcess of Hutch.

Proper understanding and analysis of Performance AppraisalProcess of Vodafone.

Proper understanding and analysis of Training & DevelopmentProcess of Hutch.

Proper understanding and analysis of Training & DevelopmentProcess of Vodafone.

Analyzing the changes due to the management change due to theacquisition by Vodafone in UP-E.

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Research design/

MethodologyThe objectives of the study was accomplished by conducting a systematicdesign, collection, analysis, and reporting of data and findings that arerelevant to different marketing situations facing the company. Themarketing research process adopted in the study consisted of the followingstages:

Defining the problem and the research objective: The researchobjective states what information it needed to solve the problem.The objective of the research was to see the change in the TrainingProcess due to the management change .

Developing the research plan: Once the problem is identified, thenext step is to prepare a plan for getting the information needed forthe research. The present study adopted the exploratory approachwhere there was a need to gather large amount of information before

making a conclusion.

Collection and sources of Data: Market research requires two kindsof data i.e., Primary Data and Secondary Data. Well-structuredquestionnaires were prepared for employees.

There were personal interview surveys mostly in office. The questionnairecontained both open-ended and closed-ended questions. Here, open-ended questions were more useful as it was an exploratory research that

was conducted in which the main objective was to get an insight into howpeople think in a particular way.

Analyze the collected information.

Report research findings.

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INTRODUCTIO

NOverview of the Indian Telecom Market

The Indian telecommunications market for mobile services is divided into23 Circles. There are four metropolitan Circles, covering the cities ofMumbai, Delhi, Kolkata and Chennai, and 19 Circles classified by theGovernment as category A, category B or category C, which cover the

rest of India. These classifications are based principally on a Circlesrevenue generating potential, with metropolitan and category A Circleshaving the highest revenue potential.

Hutch established its presence in India in 1994 by acquiring the cellularlicense for Mumbai. It now has operations in 16 circles accounting for 70%of India's mobile customer base.

Hutchison Essar Limited, with about 18.4 million* customers, is one of the

most reputed telecom companies in India. Over the years, it has beennamed the 'Most Respected Telecom Company', the 'Best Mobile Servicein the country', and the

'Most Creative and Most Effective Advertiser of the Year'.

Hutchison Telecom is a part of the multinational conglomerate - HutchisonWhampoa which has its origins dating back to 1828 in Hong Kong. The

Group operates five core businesses in 42 countries across the world, ofwhich, Hutchison Telecom has been one of the pioneers in mobilemultimedia communication and spans five continents.

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INDUSTRY PROFILE

Telecom industry -A global perspective

GLOBAL MOBILE USERS

With subscriber numbers having passed the 1.5 billion mark in the first

week of June 200Ef the mobile industry is set to break through the 2 billion

subscriber mark as soon as July 2006 and reach 2.45 billion mobile

subscriptions by the end of 2009, according to the latest forecasts from

EMC,

The EMC World Cellular Information Service is a product of the EMC World

Cellular database. This database contains 15 years of EMC's detailed

programme of worldwide research within the cellular industry. The EMC

research team has network contacts with over 210 countries and visit over

70 countries each year.

EMC World Cellular Information Service provides access to the World

Cellular Database.

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Despite long since reaching saturation point in Western Europe, the mobile

industry is still poised for sustained growth thanks to the enormous

potential of emerging markets such as China, India and Brazil.

By 2009 there are forecast to be almost 550 million subscribers in China

alone, more than twice as many as in the second largest market, the USA.

India, currently the world's 13th largest market, is forecast to quadruple in

size to take third place with 117 million subscribers.

Boosted by the TDMA (Time division Multiple Access) to GSM (Global

System for Mobile Communications) migration, Brazil is on track to hit 100

million subscribers in late 2008, up from just over 50 million currently.

Largest five markets: Dec 2003 (source: EMC)

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Country Subscribers (millions)

China 257.5

USA 157.3

Japan 79.8

Germany 62.3

Italy 55.5

Largest five markets: forecast Dec 2009

Country Subscribers (millions)

China 547.3

USA 223.9

India 116.6

Brazil 106.1

Japan 103.2

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Global GSM industry

GSM grew out of a vision that users should be able to make and receive

calls on their mobiles, wherever they travelled. Among telecommunications

technologies, GSM is unique in having a specific user benefit - international

roaming - so central to its design, deployment and operation.

International roaming enforces compliance with open standards and

promotes interoperability between network and handset equipment from

different suppliers. Together, open standards and inter-operability stimulate

competition and generate economies of scale that reduce costs - to

manufacturers, to operators, and most importantly, to end-users.

3GSM, based on WCDMA radio technology, was conceived and developed

to carry these benefits into third generation mobile. Not withstanding its

large installed base, in 2004, GSM growth at 27.7% continued to

outperform overall market growth of 23.4%.

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At the end of 2004, GSM was the choice of 75% of the world's digital

mobile phone users. GSM added more new customers in 2004 than the

end-2004 global user base of CDMA -the next most popular technology.

The billionth GSM user was connected in the first quarter of 2004 (16th Feb.

2004). More than a quarter of a billion additional GSM users were

connected during 2004.

GSM is fastest growing communications technology of all time.

The billionth GSM user was connected in Ql 2004 - just a dozen years after

the commercial launches of the first GSM networks.

Today, GSM accounts for 75% of the world's digital mobile market and 74%

of the world's wireless market.

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The GSM Association currently has operator members in more than 210

countries and territories.

GSM has had a significant economic impact

Industry analysts estimates that global subscribers will reach 2.3bn by 2010

with at least 85% of the world's next-generation wireless customers to

utilize the GSM family of technologies for both voice and data services.

Mobile network operator revenues alone totaled $426bn in 2003 (based on

current exchange rates), an increase of 19% versus 2002. Further analysts

believe that GSM accounted for circa 65% of this total. Analysts suggest

that the sector is highly profitable but that this is split between the large

haves (notably Nokia and Vodafone) and the have nots.

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In addition, they estimate that mobile telephony has created 4.1m jobs

worldwide and within this we believe GSM itself accounts for circa 75%.

Following a couple of weaker years, jobs creation will recommence and

expect the industry to reach 10m employees by 2010.

GSM's social impact probably no single telecommunications system in

recent history has had as profound an impact on global society than the

GSM mobile phone. Its unprecedented growth in the world has paved the

way for increased mobile telephone usage and brought badly needed

modern telecommunications services to undeserved communities in the

developing world.

Why has GSM been successful?

The success of GSM is that its development was founded on the delivery of

a specific user benefit - international roaming. The demands of international

roaming had profound changes on GSM's architecture and mandated an

open future-proof standard that ensured interoperability, without stifling

competition, and innovation among suppliers. This lowered barriers to

entry, promoted compatibility between systems which, in turn, lowered

development costs and set the stage for better choice and innovation. The

unparalleled economies of scale and competition that

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Resulted brought convenience and felling prices to manufacturers, network

operators and consumers.

The adoption of a digital system offered improved mobility, spectrum

efficiency. Better quality transmission and new services over the first

generation systems.

The use of Very Large Scale Integration (VLSI) microprocessor technology

and other low cost 1C architectures paved the way for more efficient and

affordable pocket-sized mobile phones. This resulted in a profound change

in users' mobile communication style from vehicular-based to personal,

opportunity-based communications.

Although GSM is only one of the pieces in the cluster of current and future

telecommunications networks, its ability to provide anytime, and almost

anywhere, communications has resulted in tremendous economic and

social consequences. We sought to identify how mobile telephony, and to a

large extent GSM, is fostering the emergence of a mobile paradigm;

whereby the mobile phone has become the first choice of personal phone.

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Its ready acceptance as the de facto global standard has been a key driver

for socio-economic growth throughout the world. As we rapidly evolve

towards a mobile wireless information society, that will bring about

convergence of mobility and the Internet, GSM is continuing to play a

crucial role in facilitating the smooth transition to the next-generation (3G)

of mobile telecommunications services.

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Telecom industry -An Indian perspective

The Indian Mobile and Telecom user base crosses 80mn mark in Ql 2004.

This is up 6.25% over the previous quarter, and 39% compared to the

same quarter last year. The ratio of mobile users to fixed-line users

reaches 87%

The Global System for Mobile-based mobile service providers added about

1.533 million new users to their subscriber base in September. The

subscriber base increased 4.79 per cent during the month to 33.56 million,

compared to 32.01 million subscribers at the end of August 2004.The

country's gross telecom subscriber base (fixed and mobile) reached

81.31mn at the end of the first quarter of the current fiscal year, the

Telecom Regulatory Authority of India (TRAI) said. This is up from the user

base of 76.73mn as on March 2004,representing an increase of around

6.25%. On an annual basis, the growth in overall telecom subscriber base

is more than 39%, according to the telecom regulator.

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The subscribers of fixed-line service providers, including Wireless Fixed

Phones (WFPs), increased from 42.84mn to 43.51mn, the TRAI said. On

the other hand, mobile users (GSM + CDMA) grew from 33.69mn to

37.8mn during the quarter under consideration. Mobile subscribers grew by

12.08% over the January-March quarter, while annual growth (June 2004

vs June 2003) was 118%.

The ratio of mobile subscribers to fixed-line users reached 87%. If this

trend continues during the rest of the fiscal year, the country would have

more mobile subscribers than the fixed-line users, the TRAI said.

State-owned Bharat Sanchar Nigam Ltd maintained its pace of subscriber

addition, adding 6,47,125 new subscribers in September. It had added

6,28,000 subscribers in August.

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Bharti retained its dominance, with about 25.93 per cent of the GSM

subscriber base, followed by BSNL with 22.43 per cent. While BSNL's

market share increased marginally from 21.46 percent in August, Hutch's

market share declined to 18.99 percent in September 2004, from 19.33 per

cent in August 2004.

Bharti added about 415,000 subscribers in September 2004, compared to

the 286,000 subscribers it had added in August 2004. Its subscriber base

reached 8.7 million by the end of September.

Among the other players, Hutch added about 181,000 subscribers in

September 2004. It had added about 190,000 subscribers in August. Idea

added only 56,784 subscribers in September. The subscriber bases of

Hutch and Idea stood at 63.71 million and 43.55 million, respectively, at the

end of September 2004.

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BPL, which operates in the Mumbai, Maharashtra, Tamilnadu and Kerala

circles, added 74,248 subscribers in September, taking its subscriber base

to 23.41 million. MTNL added only 2,586 subscribers in September 2004.

The Category C circles witnessed an impressive 12.8 per cent increase in

their GSM subscriber base. Subscriber growth in the metres was about

2.68 per cent, compared to 4.16 per cent for the 'A' circles and 5.36 per

cent for the 'B' circles during September2004. Among the metro circles, the

GSM subscriber base grew at the highest rate of 5.09 per cent in Chennai

and the lowest rate (1.53 per cent) in Kolkata.

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Subscriber base as per June 2007

Group Company 1,256,284Bharti 1,02,30,029

BSNL 84,40,787Hutch 55,52,347IDEA 55,52347BPL 26,29,251

Airtel 18,62,044Spice 14,73,350

Reliance Telecom 13,62,932

MTNL 11,12,980

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COAI Monthly Bulletin, May 2005

June 10, 2005, New Delhi

1. Subscriber Numbers for May 2005

The total cumulative all India GSM subscriber base rose by 1.22 million

from 42.12 million in April 2005 to 43.35 million in May 2005, showing a

growth of 2.91% in the month under review.

Category A, B and C subscribers grew by 2.61%, 2.91% and 4.43%respectively over the previous month while the Metro subscribers grew by1.97%. Metros constitute 26.37% of the total market. Circles A, B Cconstitute 36.29%, 31.03% and 6.32% of the total market respectively.Delhi continues to be the leading cellular market with 4.25 millionsubscribers accounting for 9.80% of the total market, closely followed byMumbai with 4.10 million subscribers accounting for 9.46% of the total

market.

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A summary picture of the company wise performance is given below:

SlNo.

Company

No ofSubscribers (In

Mn)

% MarketShare

Service

Areas

April05 May05 April05 May051. Bharti 11.39 11.8

027.04

%27.23

%23

2. BSNL 9.68 9.88 22.99%

22.79%

21

3. Hutch 7.96 8.19 18.89%

18.89%

13

4. IDEA 5.15 5.36 12.23%

12.37%

8

5. BPL 2.59 2.59 6.15% 5.99% 4

6. Aircel 1.77 1.79 4.20% 4.12% 2

7. Spice 1.45 1.47 3.44% 3.38% 2

8. Reliance 1.17 1.23 2.77% 2.83% 7

9. MTNL 0.96 1.04 2.28% 2.39% 2TOTAL 42.12 43.35 100.00% 100.00%

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COAI Monthly Bulletin, June 2006

July 11, 2006, New Delhi

1. Subscriber Numbers for June 2006

A. GSM Subscribers

The All India GSM subscriber base grew from 75.3 million in May 2006 to

78.5 million in June 2006 recording an addition of 3.2 million during the

month under review. There was an overall growth of 4.24% over the

previous month.

Among all circles, Category C circles continued to witness the highest rate

of growth at 5.8%, followed by Category B circles at 4.7% and Category A

circles at 4.4%. In the metros, Kolkata lead the growth at 3.6% followed by

Chennai, which witnessed a rise of 3.2%.

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A summary picture of the company wise performance is given below:

SlNo.

Company No ofSubscribers (In

Mn)

% MarketShare

ServiceAreas

May06 June06 May06 June[061. Bharti 21.86 23.07 29.0% 29.4% 232. BSNL 18.00 18.29 23.9% 23.3% 213. Hutch 16.77 17.54 22.3% 22.4% 16

4. IDEA 8.06 8.54 10.7% 10.9% 11

5. Aircel 3.02 3.19 4.0% 4.1% 76. Reliance 2.16 2.32 2.9% 3.0% 8

7. Spice 2.03 2.05 2.7% 2.6% 2

8. MTNL 2.10 2.17 2.8% 2.8% 2

9. BPL 1.29 1.30 1.7% 1.7% 1

TOTAL 75.29

78.48 100.0% 100.0%

The details of CDMA (digital mobile) are dealt with in the next section.

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B. CDMA Mobile Subscribers

The total cumulative all India CDMA subscriber base rose by 1.6 million*

from 25.32 million* in May 2006 to 26.92 million* in June 2006,

representing a growth of 6.3%* in the month under review. A summary

picture of the company wise performance is given below:

A summary picture of the company wise performance is given below:Sl

No.Compa

nyNo of Subscribers (InMn)

% MarketShare

ServiceAreas

May06 June06 May06 June061. Reliance* 19.33 20.2

1 76.3% 74.5%20

3. TATA 5.90 6.62 23.3% 24.6% 20

Source: AUSPI* Reliance Subscriber numbers also include WLL (F) numbers.

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History of Cellular Telephony in India

Cellular Telephony

The technology that gives a person the power to communicate anytime,

anywhere - has spawned an entire industry in mobile telecommunication.

Mobile telephones have become an integral part of the growth, success

and efficiency of any business / economy.

The mostprevalent wireless standard in the world today, is GSM. The GSM

Association (Global System for Mobile Communications) was instituted in

1987 to promote and expedite the adoption, development and deployment

and evolution of the GSM standard for digital wireless communications,

The GSM Association was formed as a result of a European Community

agreement on the need to adopt common standards suitable for cross

border European mobile communications.

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Starting off primarily as a European standard, the Group Special Mobile as

it was then called, soon came to represent the Global System for Mobile

Communications as it achieved the status of a world-wide standard. GSM

is today, the world's leading digital standard accounting for 68.5% of the

global digital wireless market.

The Indian Government when considering the introduction of cellular

services into the country, made a landmark decision to introduce the GSM

standard, leapfrogging obsolescent technologies / standards.

Although cellular licenses were made technology neutral in September

1999, all the private operators are presently offering only GSM based

mobile services. The new licensees for the 4th cellular licenses that were

awarded in July 2001 too, have opted for GSM technology to offer their

mobile services.

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Cellular Industry in India

The Government of India recognizes that the provision of a world-class

telecommunications infrastructure and information is the key to rapid

economic and social development of the country. It is critical not only for

the development of the Information Technology industry, but also has

widespread ramifications on the entire economy of the country. It is also

anticipated that going forward, a major part of the GDP of the country

would be contributed by this sector. Accordingly, it is of vital importance to

the country that there be a comprehensive and forward looking

telecommunications policy which creates an enabling framework for

development of this industry.

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Hutchison Essar

Hutch established its presence in India in 1994 by acquiring the cellularlicense for Mumbai. It now has operations in 16 circles accounting for 70%

of India's mobile customer base.

Hutchison Essar Limited, with about 18.4 million* customers, is one of themost reputed telecom companies in India. Over the years, it has beennamed the 'Most Respected Telecom Company', the 'Best Mobile Servicein the country', and the'Most Creative and Most Effective Advertiser of theYear'.

Hutchison Essar, Formerly Hutchison Max Telecom is the fourth largestprovider of wireless telecommunications services in India. It is the holding

company for the cellular operations of a joint venture between India'scorporate conglomerate the Essar Group and HutchisonTelecommunications International Limited (HTIL), a subsidiary of HongKong giant Hutchison Whampoa. The company offers services under theOrange and Hutch brands in every major region of the country and hasmore than 8 million subscribers. Its networks connect with the internationalnetwork operations of HTIL, which controls a little over two-thirds ofHutchison Essar. Vodafone outbid rivals to win the company in 2007.

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Hutch Group

HWL is a leading global telecommunications and data services provideroperating with a high growth strategy in 17 countries. It is a dynamic andagile player with a strong track record.

HWL started mobile business in 1983 in our home market of Hong Kongand now serves over 44 million customers. Our array oftelecommunications and data network offerings provides a depth oftechnological knowledge and insight into emerging consumer trends. Thisbreadth of services in so many markets around the world also allows ouroperations to exploit opportunities.

HWL is a leading global telecommunications and data services provideroperating with a high growth strategy in 17 countries. It is a dynamic andagile player with a strong track record as:

The first to market with an international 3G video mobile networkunder the 3 brand;

One of the most agile and profitable 2G mobile voice and datanetwork operators; and

As a major owner and operator of the fibre optic broadband and fixed-line networks in Hong Kong, serving as a telecom gateway to China.

HWL started mobile business in 1983 in our home market of Hong Kongand now serves over 44 million customers. Their array oftelecommunications and data network offerings provides a depth oftechnological knowledge and insight into emerging consumer trends. Thisbreadth of services in so many markets around the world also allows theiroperations to exploit opportunities, synergies and critical mass in order tomaintain a leadership position. Their telecommunications and data

infrastructure support offerings in the areas of mobile telephony (voice andvideo based multimedia), fibre-optic broadband networks, fixed-lineservices and radio broadcasting.

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HWL is proud to be the first international provider of 3G video mobileservices and an early adopter of the latest and most promising mobilephone technology. While other operators are just now rolling their third-generation mobile services in late 2004, 3 has been successfully operating3G networks and equipment in the Australia, Austria, Denmark, HongKong, Ireland, Israel, Italy, Sweden and the United Kingdom since early2003. We were also the first operator in Hong Kong to introduce 3G videomobile services in January 2004.

Another of their major telecommunications subsidiary is HutchisonTelecommunications International Limited (Hutchison Telecom), which waslisted on the Hong Kong and New York stock exchanges in October 2004.Hutchison Telecom has a significant presence, and in many cases is amarket leader, in nine dynamic markets, operating or rolling out mobile

services in Hong Kong and Macau, India, Israel, Thailand, Sri Lanka,Ghana, Indonesia and Vietnam. The 3G network in Hong Kong and a fixed-line telecom running there on a fibre optic network is also part of theHutchison Telecom business. Hutchison Telecom is built on a high-growthstrategy focused on mobile telecommunications services markets witheconomic prospects and good demographics. A number of HutchisonTelecom markets such as India remain significantly under penetrated andoffers significant opportunities for future growth. In other markets such asHong Kong and Israel, mobile phone penetration is higher but customersare very eager to adopt new services and applications, offering growthprospects in providing technologically-advanced value-added services.

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Essar Group

The Essar Group is one of India's largest corporate houses with interestsspanning the manufacturing and service sectors in both old and new

economies: steel, oil & gas, power, telecom & BPO, shipping andconstruction. The groups enterprise value is approximately US$ 15 billion(Rs. 67,000 crores) and a turnover of over US$ 2.2 bn (Rs. 100 billion).Strategic investments made by the group over the past decade haveresulted in the creation of tangible and intangible assets that are at theheart of the Indian economy.

The Group takes pride in being a high-performance multinationalorganization, providing world-class services and products. Manned by ahighly efficient and dynamic team of employees, the Group is growingstronger every day. A committed corporate citizen, the group providesunwavering support to the community as well as initiates various social andecological drives that have a positive impact on society.

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Vodafone and Essar have reached an agreement

This follows Vodafone's announcement on 11 February 2007 that it hadagreed to acquire Hutchison Telecommunications International Limited("HTIL") controlling interest in Hutchison Essar, in which Essar is and willcontinue to be a 33% shareholder.

The partners have agreed that Hutchison Essar will be renamed VodafoneEssar and, in due course, that the business will market its products andservices under the Vodafone brand.

With penetration levels of around 13%, both partners believe that there aresubstantial growth opportunities in the Indian mobile telecommunicationsmarket.

Vodafone is the leading international mobile operator with an extensiverange of products and services, many of which are not currently available inIndia. Essar is a major industrial group with a deep understanding of Indiaand the Indian mobile telecommunications industry. With thesecomplementary strengths

Vodafone and Essar plan to broaden Vodafone Essar's service offering andenable it to become the leader in the Indian mobile telephony market.

Contact Information

Address: Hutch House, Peninsula

Corporate Park, Ganpatrao

Kadam Mg, Lower

Mumbai 400013, India

Phone: +91-22-5664-5000

Fax: +91-22-5666-1200

Financial HighlightsFiscal Year End: December

Revenue (2004): 912.20 M

Revenue Growth (1 yr): 57.50%

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Industry Information

Sector: Technology

Industry: Wireless Communications

Top Competitors

Bharat Sanchar Nigam Ltd.

Bharti Tele-Ventures Limited

Reliance Industries Limited

About Vodafone

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Vodafone Group Plc is the world's leading mobile telecommunicationscompany, with a significant presence in Europe, the Middle East, Africa,Asia Pacific and the United States through the Company's subsidiaryundertakings, joint ventures, associated undertakings and investments.

The Group's mobile subsidiaries operate under the brand name 'Vodafone'.In the United States the Group's associated undertaking operates asVerizon Wireless. During the last two financial years, the Group has alsoentered into arrangements with network operators in countries where theGroup does not hold an equity stake. Under the terms of these PartnerNetwork Agreements, the Group and its partner networks co-operate in thedevelopment and marketing of global services under dual brand logos.

At 30 June 2007, based on the registered customers of mobile

telecommunications ventures in which it had ownership interests at thatdate, the Group had 232 million customers, excluding paging customers,calculated on a proportionate basis in accordance with the Company'spercentage interest in these ventures.

The Company's ordinary shares are listed on the London Stock Exchangeand the Company's American Depositary Shares ('ADSs') are listed on theNew York Stock Exchange. The Company had a total market capitalization

of approximately 88 billion at 3 July 2007.

Vodafone Group Plc is a public limited company incorporated in Englandunder registered number 1833679. Its registered office is Vodafone House,The Connection, Newbury, and Berkshire, RG14 2FN, England.At 31 December 2006, based on the registered customers of mobile

telecommunications ventures in which it had ownership interests at thatdate, the Group had 198.6 million customers, excluding paging customers,calculated on a proportionate basis in accordance with the Company's

percentage interest in these ventures.

Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc.Then known as Racal Telecom Limited, approximately 20% of thecompany's capital was offered to the public in October 1988. It was fullydemerged from Racal Electronics Plc and became an independent

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company in September 1991, at which time it changed its name toVodafone Group Plc.

Following its merger with AirTouch Communications, Inc. (AirTouch), wechanged our name to Vodafone AirTouch Plc on 29 June 1999 and,following approval by the shareholders in General Meeting, reverted to ourformer name, Vodafone Group Plc, on 28 July 2000.

Key milestones in the development of Vodafone can be found in thefollowing sections, organised by year:

2007

Safaricom, Vodafones partner in Kenya announces the launch of M-PESA,

an innovative new mobile payment solution that enables customers tocomplete simple financial transactions by mobile phone. (February)

Vodafone agrees to buy a controlling interest in Hutchison Essar Limited, aleading operator in the fast growing Indian mobile market, (February)

Vodafone announces agreements with both Microsoft and Yahoo! to bringseamless Instant Messaging (IM) services to the mobile which can beaccessed from both the PC and mobile handsets. (February)

Vodafone signs a series of ground-breaking agreements which will lead tothe mobilising of the internet. YouTube agrees to offer Vodafonecustomers specially rendered YouTube pages on their mobile phones. WithGoogle, Vodafone announces its intention to develop a location-basedversion of Google Maps for. With eBay, Vodafone announces it is to offerthe new eBay mobile service to customers, With MySpace.com Vodafoneannounces an exclusive partnership to offer Vodafone customers aMySpace experience via their mobile phones. (February).

Vodafone reaches 200 million customers (January)

2006

Sale of 25% stake in Switzerland's Swisscom (December)

Sale of 25% stake in Belgium's Proximus. (August)

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The number of Vodafone live! customers with 3G reached 10 million inMarch 2006.

We acquired Telsim Mobil Telekomunikasyon Hizmetleri (Turkey) in May2006.

Launch of mobile TV capability and Vodafone Radio DJ, which offers apersonalised, interactive radio service streamed to 3G phones and PCs.

3G broadband through HSDPA launched offering faster than 3G speeds.

Japan business sold to SoftBank.

Make the most of now global marketing campaign launched.

Sir John Bond succeeds Lord MacLaurin as Chairman.

2005

We completed the acquisition of MobiFon S.A. (Romania) and OskarMobile a.c. (Czech Republic) (May).

Launch of Vodafone Simply, a new easy-to-use service for customers who

want to use voice and text services with minimum complexity (May).

Introduction of Vodafone Passport, a voice roaming price plan that providescustomers with greater price clarity when using mobile voice servicesabroad (May).

2004

We launched our first 3G service in Europe with Vodafone Mobile Connect3G/GPRS data card.

We have 14 Partner Networks with new agreements in Cyprus, Hong Kongand Luxembourg.

Vodafone live! with 3G launched in 13 markets (November).

2003

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At the GSM Association Awards Ceremony in Cannes, France, we won themobile industry's most prestigious awards in two categories, BestConsumer Wireless Application or Service and Best Television orBroadcast Commercial for its global consumer service, Vodafone live!

Our premium handset for Vodafone live!, the Sharp GX10, won the BestWireless Handset Award for the Sharp Corporation.

Vodafone live! Attracts 1 million customers in its first six months.

Verizon Wireless and Vodafone co-operate on laptop e-mail, internet andcorporate applications access for the US and Europe.

Arun Sarin succeeds Sir Christopher Gent as Chief Executive.

2002

We trial our global mobile payment system in the UK, Italy and Germany.The trial enables customers to purchase physical and digital goods usingtheir mobile phone.

We launch the first commercial European GPRS roaming service.Customers are able to seamlessly access services such as corporate e-mail, intranet and personalized information on their mobile phones, laptopsor PDAs over GPRS.

The Vodafone Group Foundation is launched, with plans to contribute 20million to community programmes, guided by the Group Social InvestmentPolicy.

In October, we announce the launch of Vodafone live!, a new consumerproposition, and Mobile Office, a new business proposition. In November,Vodafone Remote Access is launched as part of Mobile Office. The servicegives business customers an easy way to connect to their corporate LAN toaccess e-mail, calendar and other business specific applications whilst onthe move.

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2001

We acquire Ireland's leading mobile communications company, Eircell.

Vodafone and China Mobile (Hong Kong) ltd (CHMK) sign a 'strategic

alliance agreement'.

The Group completes the acquisition of a 25% stake in Swisscom Mobile.

We introduce instant messaging to our networks, a faster and moreefficient way to communicate using text messages via SMS or WAP.

First global communications campaign launched in August. The campaignfeatures TV, cinema, print, online and outdoor media, each version askingthe question, 'How are you?'.

First Vodafone Partner Agreement with TDC Mobil A/S, Denmark's leadingmobile operator. The agreement is the first of its kind in the mobile industryand means Vodafone and TDC Mobil will cooperate in developing,marketing and advertising international roaming products and services tointernational travellers and corporate customers.

We make the word's first 3G roaming call (between Spain and Japan).

2000

On 4 February, terms are agreed with the Supervisory Board ofMannesmann by which Mannesmann would become a part of theVodafone community. The transaction almost doubles the size of theVodafone Group.

The agreement to acquire Mannesmann AG receives European

Commission clearance on 12 April 2000.Verizon Wireless is launched in May, the combination of Vodafone AirTouchs and Bell Atlantic's US cellular, PCS and paging assets.

Hutchison Essar, which will be renamed Vodafone Essar , is aleading Indian telecommunications mobile operator with 25 million

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customers currently, representing a 16.4% national market share.Hutchison Essar has over 6,000 employees, operates in 16 circles and haslicenses in an additional six circles. In the year to 31 December 2005,Hutchison Essar reported revenue of US$1.3 billion, EBITDA of US$415million, and operating profit of US$313 million. In the six months to 30 June2006, Hutchison Essar reported revenue of US$908 million, EBITDA ofUS$297 million, and operating profit of US$226 million.

Performance Appraisal

Performance Appraisal , also known as Employee Appraisal, is a methodby which the performance of an employee is measured (generally in termsof quality, quantity, cost and Time). The roots of Performance Appraisalcan be found in Frederick Winslow Taylors time and motion study.Performance appraisal is a part of career development.

Performance appraisals are a regular review of employee performancewithin organizations.

Generally, the aims of a scheme are:

Give feedback on performance to employees.

Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions-salary (merit) increases,

promotions, disciplinary actions, etc. Provide the opportunity for organizational diagnosis and

development. Facilitate communication between employee and administrator.

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Validate selection techniques and human resource policies to meetfederal Equal Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical orscalar rating system whereby managers are asked to score an individualagainst a number of objectives/attributes. Employees are also allowed theopportunity to assess the person (manager) at the same time. This isknown as 360 degree appraisal

In human resources, 360-degree feedback, also known as 'multi-raterfeedback', 'multisource feedback', or 'multisource assessment', is employeedevelopment feedback that comes from all around the employee. "360"refers to the 360 degrees in a circle. The feedback would come fromsubordinates, peers, and managers in the organizational hierarchy, as well

as self-assessment, and in some cases external sources such ascustomers and suppliers or other interested stakeholders. It may becontrasted with upward feedback, where managers are given feedback bytheir direct reports, or a traditional performance appraisal, where theemployees are most often reviewed only by their manager.The results from 360-degree feedback are often used by the personreceiving the feedback to plan their training and development. The resultsare also used by some organizations for making promotional or pay adecision, which is sometimes called "360-degree review."

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Performance Appraisal Process of Hutch

Training Process of Hutch begins from receiving PP&R Forms(Performance Appraisal Forms), for all employees. Appraisal is been

divided into two parts:

1. Anniversary Appraisal2. Annual Appraisal

Anniversary Appraisalis done for those employees who completes theirFirstYear, and also to those who are new to the Organization & have notcompleted theirFirstYear to bring them to the Appraisal cycle. AnniversaryAppraisalis done only for first year.

Annual Appraisalis done for those employees who have been part of theorganization for more than One year. Annual Appraisalis done, once anemployee completes his first year.

Hutch is following a Normal Appraisal process in which an employee getsrated on a scale from 1 to 5 based on his performance against his setKRAs by his Reporting Manager.

At the end of the Appraisal, Reporting Manager also set the KRAs of the

employee for the coming year. Based on his Performance, Manager writesabout the strengths of the employee as well as his Area of Improvements.Based on these area of improvements we need to identify the areas wherewe need to give them appropriate Training.

Here it comes the role of training and development in which we need togive them appropriate training to overcome their weakness/es.

Initially I started receiving the Performance Appraisal forms of the

employees from their respective zones. I had a set excel format in whichthere were five rows given consisting information like: E_code, Name,Function, and Sub-Function & Band. Three more rows were there toclassify the Training needs under three heads: Functional/Technical,Behavioral/Managerial, Others.

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Performance Appraisal Process of Vodafone

Vodafone follows a Normal Appraisal Process for their employees. This

consists of an informal discussion with the Line manager of the appraiseeregarding his Performance review.

Employee gets rated on a scale from 1 to 5 based on his performanceagainst his set KRAs by his Reporting Manager.

After this an annual performance review called Performance Dialoguewhich is designed for setting goals for the Forthcoming Year, and identifythe skills and support an employee need to achieve them.

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Training & Development Process

Training and Development (T & D) deals with the design and delivery oflearning to improve performance within organizations. It includes activities

that are intended to improve knowledge and skills of employees in anOrganization.

T & D is an important part of an organization, as it helps in reducinginefficiency of an employee at work and in increasing employeeproductivity.

Training refers to the acquisition of knowledge, skills, and competencies asa result of the teaching of vocational or practical skills and knowledge thatrelates to specific useful skills.

Training and Development is the field concerned with workplace learning toimprove performance. Such training can be generally categorized as on-the-job oroff-the-job. On-the-job describes training that is given in a normalworking situation, using the actual tools, equipment, documents ormaterials that they will use when fully trained. On-the-job training is usuallymost effective for vocational work. Off-the-job training takes place awayfrom normal work situation which means that the employee is not regardedas productive worker when training is taking place. An advantage of off-the-

job training is that it allows people to get away from work and totallyconcentrate on the training being given. This type of training is mosteffective for training concepts and ideas.

Hence one can say, Training and Development plays an important role inempowering the growth of employees as well as Organizations.

In organizational development, the related field of training anddevelopment (T & D) deals with the design and delivery of learning toimprove performance within organizations.

In some organizations the term Learning & Development is used instead ofTraining and Development in order to emphasize the importance oflearning for the individual and the organization. In other organizations, theterm Human Resource Developmentis used

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Learning and Development can be described as interventions andactivities that are intended to improve the knowledge and skills inorganizations which increasingly focus on the learner.

Terms such as 'training, 'development, 'learning and 'education are oftenused interchangeably. There are differences and distinctions between themand they may become blurred and less clear cut.

(A) Education Learning

(B) Training Development

Both refer to the process by which an employee' attitudes, behaviour orperformance is changed

Educationo Develops intellectual capability, conceptual and social

understandingo Develops work performance through the learning process

Learningo Focusing on the changes which take place within the individualo The process by which knowledge, skill or attitude is gained

Trainingo Narrower concept that involves planned instructional activitieso May use departmental processes and activities

Developmento Different views on the interaction of internal/external factors,

Part of Human Resource Management. It may also describe theorganizations strategy for managing the process

o Outcomes may be long lasting but may diminish over time

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Organization Development (OD): Organizational development plan is the

process through which an organization develops the internal capacity to bethe most effective it can be in its mission work and to sustain itself over thelong term. This definition highlights the explicit connection betweenorganizational development work and the achievement of organizationalmission.

Individual development planning (IDP) is the annual process, tied tobusiness planning and the budget cycle, whereby the management in anorganization establishes training goals and plans for the members of the

organization.

Topics in T&D:

Coaching: coach is a person who supports people (clients) toachieve their goals, with goal setting, encouragement and questions.Unlike a counselor or mentor, a coach rarely offers advice. However,term coaching is often misused in situations where the "coach"provides expert opinion and "how to" answers and advice. Coachingdoes not include the given solution for the problem but will energize

the coachee to solve the problem. Typically, a coach helps clients tofind their own solutions, by asking questions that give them insightinto their situations. A coach holds a client accountable, so if a clientagrees to a plan to achieve a goal, a coach will help motivate them tocomplete their plan.

a-Organizational coaching

In organizational development (OD), coaching forms an importantintervention designed to assess and improve performance of an individual

or a team. It is very important to improve the skills of the person which canbe achieved through proper training by which he can achieveorganizational goals and also enhance his knowledge and skills.

Coaching is a key contributor to a training session being transferred backinto the workforce.

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There is an important difference between Coaching and Mentorship, whichare often confused. Mentoring is when someone who has direct andrelevant experience of the problem area offers advice and suggestions tohelp the client. Coaching helps the client to explore for themselves theproblem at hand, their potential options and how they might move forward.Coaches in the business arena should never give advice - they work in anon-directive way. In this way the client develops an ability to think in amore effective way, increases self responsibility and takes full ownership ofthe solutions they themselves develop.

Mentorship: Mentorship refers to a developmental relationshipbetween a more experienced mentorand a less experienced partnerreferred to as a mentee orprotg. A person guided and protectedby a more prominent person. There are two types of mentoring

relationships: formal and informal. Informal relationships develop ontheir own between partners. Formal mentoring, on the other hand,refers to assigned relationships, often associated with organizationalmentoring programs designed to promote employee development.

In well-designed formal mentoring programs, there are program goals,schedules, training (for mentors and mentees), and evaluation. Mentorsinspire their mentee to follow their dreams. For example, in someprograms, newcomers to the organization (protgs) are paired with moreexperienced people (mentors) in order to obtain information, good

examples, and advice as they advance. It is considered that newemployees who are paired with a mentor are twice more likely to remain intheir job than those who do not get mentorship.

Outbound Management Development Program: These programmesgenerally revolve around activities designed to improve leadership,communication skills, planning, change management, delegation,teamwork, and motivation. Participants are divided into teams andassigned tasks or activities for completion in a specified time. Achievement

and performance during these activities is reviewed in group discussions toidentify behaviors that enhance performance or lead to failure or decreasedperformance. Strategies are formulated to deal with factors that hinder, andthese strategies are then put to use in the activities that follow, to test theireffectiveness.

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The factor behind this method gaining popularity among companies is theenjoyable nature of the activities, and the inputs of the participantsthemselves leading to development. This is considered to be an importantpart of adding to the "stickiness" of the learning. The game-like targets alsodecrease resistance to negative feedback and make it more likely for it tobe accepted and acted upon. The stakes being low further encouragesrisks involved with changing behaviour to effect performance andencourages experimentation.

Training process at Hutch

Training and development is a program conducted to give the employeesappropriate training to overcome their weakness/es.

After receiving the Performance Appraisal forms of the employees fromtheir respective zones. Training Needs have to be analyzed and need tobe entered in a set excel format in which there are Five rows consistinginformation like: E_code, Name, Function, Sub-Function & Band. Apartfrom these Three more rows are there to classify the Training needs underthree heads: Functional/Technical, Behavioral/Managerial, Others.

The Training Needs/Area of improvement of the employees are capturedunder these three heads.

After capturing all the training needs the T&D head have to make thetraining calendar: Annual & Quarter based.

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Training Process at Vodafone

After following the normal Performance Appraisal Process, The T&D head

starts functioning by taking the Training needs employee wise anddepartment wise in an excel format. After this they make the Trainingcalendar on Quarterly and Annual basis.

Vodafone Provides training for there employees to develop new skills andopportunities to gain new experiences. This helps them reach their fullpotential and benefits the business.

In 2004/05, the company began to roll out a single global performancemanagement process to ensure a consistent approach to peopledevelopment throughout the company.

Vodafone have 'academies' in a number of functions, including finance andsales. These provide focused online learning to encourage employees'development.

There Global Rotation Programme encourages managers with highpotential to broaden their international outlook and gain experience by

working in a range of functions in different parts of the company. More than60% of there top managers have experience of working in more than onecountry.

There Global Leadership Programme and Global Rotation Programmeenable high potential managers to gain experience working abroad and indifferent company functions. The Global Leadership Programme is in itssixth year and has 93 participants. It helps them to identify and develop themost talented employees with the potential to become senior leaders within

the company. It enables employees to gain experience by workingalongside senior directors and completing an MBA course.

Vodafone is using Leadership Framework to help them recruit and promoteleaders within the company. They are evaluating there most seniormanagers against the framework. During the 2006 financial year over 80%of there senior appointments were made internally.

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In 2005/06, they spent approximately 29 million on training (based on datacovering 96% of employees) and provided a total of approximately 242,000training days for employees (based on data covering 86% of employees).This is equivalent to approximately five days of training per employee.

In there 2005 survey, the employees requested more developmentopportunities. In 2005/06, they responded by introducing a globalPerformance Dialogue process to ensure a consistent approach toemployee development across the Group. Employees meet regularly withtheir managers as part of the process to discuss opportunities and agreeindividual development goals.

They also launched an academy to provide online training to helpemployees in the finance department meet the development needsidentified through the Performance Dialogue process. In 2005/06, morethan 400 people completed training through the Finance Academy. Theyare now launching academies on business sales, technology and customermanagement.

They have standardized there annual Development Board process acrossall operating companies. This is how they review managers' performanceand potential in order to plan succession and development.

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ConclusionAfter creating this Questionnaire, it was distributed to 20 employeesto know there views about the Management change.

When asked them about these Questions, since the performanceappraisal process and Training Process of Hutch & Vodafone (both)are same, there were no such confusions in mind of the employeesregarding the new PP&R and T&D processes.

As both the companies are following the same Processes. There wereonly two changes:

1. Nomenclatures used for the processes

2. The performance appraisal cycle of hutch was from April to March,which after the acquisition is changed to July to June

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References

www.hutch.in www.vodafone.com www.google.com www.htil.com www.essar.com

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http://www.hutch.in/http://www.hutch.in/http://www.vodafone.com/http://www.vodafone.com/http://www.google.com/http://www.google.com/http://www.htil.com/http://www.htil.com/http://www.essar.com/http://www.essar.com/http://www.hutch.in/http://www.vodafone.com/http://www.google.com/http://www.htil.com/http://www.essar.com/


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ANNEXURE

About changes in the Training Process of Hutch after

Acquisition by Vodafone

Employees opinion:

Name: Date:

Age: Phone No:

Address:

Awareness about the training Process & change after the

acquisition:

1 Are you aware of the Acquisition made by Vodafone?

a) Yes

b) No

If Yes:

2 How you see this acquisition?

a) As a better prospect only for the Company

b) As a better prospect for employees future also

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3 Were you satisfied with the Appraisal process of hutch?

a) Yes

b) Partial

c) No

4 Are you aware about the appraisal process followed by

Vodafone?

a) Aware of appraisal process

b) Partially aware about the appraisal process

c) Not aware

5 Were you satisfied with the training Process at Hutch?

a) Yes

b) To some extent

c) Not aware

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6 Are you aware about the Training process followed by

Vodafone?

a) Yes

b) Partially

c) Not aware

7 Do u think this change is going to effect the present

Performance Appraisal & Training Process of Hutch?

a) Yes

b) No

c) Dont know

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LimitationsThough the study aimed to achieve the above mentioned objectives in fullearnest and accuracy, but it was hampered due to certain limitations. Someof the limitations of this study may be summarized as follows:

Locating the Appraisal Process of Hutch.

Locating the Appraisal Process of Vodafone.

Data search for the Training process of Vodafone.

Inadequate data for the desired objective.

Some respondent were not cautious of the time given even afterfixing the time.

The survey was tedious.

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project by asad salim khan

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