report hcl training
DESCRIPTION
hrm reportTRANSCRIPT
PROJECT REPORT
ON
A STUDY ON TRAINING AND DEVELOPMENT PRACTICES AT HCL TECHNOLOGIES
HCLSubmitted to: Submitted by:Mrs. Niti Chatterji Rahul Rai(501304039)Prof. HRM Rahul Madaan(501304038)
Harshpreet Bhatia(501304021)Sakshi Pathak(501304042)
ACKNOWLEDGEMENT
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Through this acknowledgement we express our sincere gratitude towards all
those people who helped us in this project, which has been a learning
experience.
We are thankful to our project guide Mrs. Niti Chatterji for for giving us the
opportunity to study this aspect of Human Resource Management.
We appreciate the co-ordination extended by our friends and also express
sincere thankfulness to the entire faculty members of Thapar School of
Management, Dera Bassi for helping us with insights on the task and also
assisting me for the same.
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TABLE OF CONTENT
Chapter- 1: INTRODUCTION
1.1 OBJECTIVE OF THE STUDY
1.2 PURPOSE OF THE STUDY
1.3 SCOPE OF THE STUDY
1.4 RESEARCH METHODOLOGY
Chapter- 2: THEORETICAL PERSPECTIVE
2.1 PLANNING AND TRAINING ACTIVITIES
2.2 TRAINING INPUTS
2.3 AREAS OF TRAINING
2.4 LEARNING AND TRAINING
2.5 TRAINING POLICY
2.6 POSITIVE OUTCOMES OF TRAINING
2.7 TRAINING METHODS
2.8 OBJECTIVES OF TRAINING METHODS
2.9 CLASSIFICATION OF METHODS
2.10 TRAINING ORGANIZATION
2.11 EVALUATION OF TRAINING
2.12 IS TRAINING THE BEST MEDICINE?
2.13 NEW TRENDS IN TRAINING
2.14 TRAIN, DON'T TELL
2.15 TRAINING: MANTRA OF THE NEW MILLENNIUM
Chapter- 3: COMPANY PROFILE
Chapter- 4: SURVEY ANALYSIS
4.1 TRAINING EVALUATION
Chapter- 5: CONCLUSION AND RECOMMENDATION
5.1 CONCLUSION
5.2 RECOMMENDATIONS
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Chapter-1
INTRODUCTION
William James of Harvard University estimated that employees could retain
their jobs by working a mere 20-30 percent of their potential. His research
led him to believe that if these same employees were properly motivated
they could work at 80-90 percent of their capabilities. Behavioral sciences
concepts like motivation and enhanced productivity could well be used for
such improvements in employee output. Training could be one of the means
to achieve such improvements through the effective and efficient use of
learning resources.
Training is the process of assisting a person in enhancing his efficiency and
effectiveness at work by improving and updating his professional knowledge
developing his personal skills relevant to his work and cultivating in him
appropriate behavior and attitude towards his work and people he is working
with. Development takes place as a result of training and essentially implies
growth plus change. Thus, training and development go hand in hand.
Training is a long-term investment in human resource using the equation
given below:
Performance = ability x motivation
Training can have an impact on both these factors. It can heighten the skills
and abilities of the employees and their motivation by increasing their sense
of commitment and encouraging them to develop and use new skills. It is a
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powerful tool that can have a major impact on both employee productivity
and morale, if properly used.
WHY IS THERE A NEED FOR TRAINING AND WHY HAVE WE CHOSEN
TO STUDY THIS TOPIC?
Organization viability and the transformation process
The primary concern of an organization is its viability and hence its
efficiency. There is continuous environmental pressure for efficiency, and if
an organization does not respond to this pressure, it may find itself rapidly
losing whatever share of the market it has. Employee training, therefore,
imparts specific skills and knowledge to employees in order that they
contribute to the organization’s efficiency, and be able to cope with the
pressures of the changing environment.
Technological advances
There has been tremendous development in industrial technology.
Mechanization and automation of the plant is necessary for the
organization’s survival; hence, it has to train its employees for more skilled
positions. New skills are required to operate new machinery, or familiarity
with new processes and production techniques has to be introduced.
Organizational Complexity
With increasing mechanization, automation and development in technology,
many organizations have emerged as complex organizations that produce a
wide range of products or offer a wide range of services. This had led to
complex problems of coordination and integration of activities. Eventually the
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need for training and retraining is felt at the all levels in such organizations,
from shop floor to top executives.
Human Relations
The growing complexity of organizations has led to various human problems,
like alienation, inter-personal and inter-group problems. Hence, training in
human relations is becoming extremely important for tackling these
problems.
Due to its great relevance in the current automated, mechanized and
extremely competitive business environment, where skills are becoming
obsolete faster than ever, we have chosen to study in detail the training and
development needs of employees.
My endeavor will be to gain an in-depth insight into the process of
discovering, harnessing and developing of the human capital to the benefit
of both the individual and the organization into days highly dynamic and
competitive business world through a comprehensive study and analysis of
the latest training and development techniques used by HCL Technologies,
Noida.
1.1 OBJECTIVE OF THE STUDY
To evaluate the effectiveness of Training And Development programs
conducted at HCL Technologies
To suggest measures for improvement for Training and Development
programs at HCL Technologies
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1.2 PURPOSE OF THE STUDY
Never before has the rapid increase in new knowledge and technology and
in the base of change and itself demanded a learning response as great as
what is now required to remain competitive. Today individuals and
organizations must become continuous learners to survive and hence it is
not surprising to find that most successful organizations operate in a
continuous learning mode.
The challenge of globalization, technological innovation increasing
competition and growth through expansion, diversification and acquisition
has had a wide-ranging and far reaching impact on HRD. There is a need for
a continuous process that aims at providing fresh knowledge and skill inputs
to the employees so as to ensure the development of their competencies,
dynamism, motivation and effectiveness in a systematic and planned way,
thereby improving the productivity and overall organizational effectiveness.
As a result, training and development activities have acquired great
significance and are now firmly centre-stage in most of the organizations.
Hence it can be said that with the advent of free market economy rapid
change in the environment, training and development activities have
assumed an importance never before witnessed in Indian corporate history.
1.3 SCOPE OF THE STUDY
The study will be limited to the Training and Development Programs for
Team Leaders and Team Members at HCL Technologies Chandigarh.
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1.4 RESEARCH METHODOLOGY
The base on which a study rests is the information that is embedded in it.
The data for this study was obtained as a blend of both Secondary and
Primary sources.
Sources and Methods of Data Collection
Primary Sources
A sample size of 25 employees of HCL Technologies was taken, which
consisted of 5 Team Leaders and 20 Team members.
Primary
Questionnaire- A questionnaire was designed and administered to the
Employees drawn from various levels and various departments in the
organization.
Internal – Information regarding the training policies and procedures was
obtained through personal discussions with Trainers, Team Leaders, Team
Members and HR manager.
Secondary Sources
Secondary data i.e. data which already existed was collected from two
sources.
Internal Sources
— Books
— Training / HRD Manuals, Company reports, House Journals records
etc.
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External Sources
-This mainly refers to Internet.
Data Analysis:
The results of the survey have been tabulated and presented in the final
report in form of bars and pie charts.
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Chapter-2
THEORETICAL PERSPECTIVE
The effective functioning of any organization requires that employees learn
to perform their jobs at a satisfactory level of proficiency. An effective
organization wishes to have amongst its ranks individuals who are qualified
to accept increasing responsibilities. So much so that organizations need to
provide opportunities for the continuous development of employees not only
in their present jobs, but also to develop their capabilities for other jobs for
which they might later be considered.
Training refers to the teaching/learning activities carried on for the primary
purpose of helping members of an organization to acquire and apply the
knowledge, skills, abilities and attitudes needed by that organization. Broadly
speaking, training is the act of increasing the knowledge and skill of an
employee for doing a particular job.
Though it is true that unplanned learning through job experience helps
development, the experience of most organizations is that it is advantageous
to plan systematic training programmes of various types as a regular part of
an adequate personnel development programme. Such programmes are
definite assets in helping managers to learn correct job methods, to achieve
a satisfactory level of job performance, and to acquire capabilities that would
be valuable in possible future jobs.
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2.1 PLANNING AND TRAINING ACTIVITIES
The following steps must form the basis of any training activity:
1. Determine the training needs and objectives.
2. Translate them into programs that meet the needs of the selected
trainees.
3. Evaluate the results.
2.2 TRAINING INPUTS
There are three basic types of inputs: skills, attitudes, and knowledge.
The primary purpose of training is to establish a sound relationship between
the worker and his job- the optimum man-task relationship. Such a
relationship is at its best when the worker’s attitude to the job is right, when
the worker’s knowledge of the job is adequate, and he has developed the
necessary skills.
Training activities in an industrial organization are aimed at making desired
modifications in skills, attitudes and knowledge of employees so that they
perform their jobs most efficiently and effectively.
SKILLS
Training activities nowadays encompass activities ranging from the
acquisitions of a simple motor skill to a complex administrative one. Training
an employee for a particular skill is undertaken to enable him to be more
effective on the job. For instance, new workers can be trained to achieve
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levels of output attained by experienced older workers. Similarly existing
workers whose levels of output are below par can be retrained.
ATTITUDE
Through orientation (induction) programmes, organization develops attitudes
in new employees, which are favorable toward the achievement of
organizational goals. Training programmes in industry are aimed at moulding
employee attitudes to achieve support for company activities, and to obtain
better cooperation and greater loyalty.
KNOWLEDGE
Training aimed at imparting knowledge to employees in the organizations
provides for understanding of all the problems of modern industry. This
knowledge for a worker is specific to his job, and related broadly to plant,
machinery, material product, and quality and standard of product.
Knowledge for managerial personnel may be related to complexity of
problems in organizing, planning, staffing, directing and controlling.
In general, training initiated for imparting knowledge to employees should
consider three aspects:
1. Knowledge in general about factory and work environment- job context
2. Specific knowledge related to job- job content
3. Knowledge related to quality and standards of product or quality of work.
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2.3 AREAS OF TRAINING
Areas of training can be classified into the following categories:
1. Training in company policies and procedures (induction training)
2. Training in particular skills.
3. Training in human relations.
4. Managerial and supervisory training.
5. Apprentice training.
Training in company policies and procedures
This is a part of the induction of a new employee. The objective is to orient
new employees with the set of rules, procedures, management, organization
structure, environment and products, which the firm has and/or deals with.
Orientation is a continuous process aimed at the adjustment of all
employees to new and changing situations. It aims to impart the facts of
company rules and policy, to create attitudes of confidence in the company,
prides in the products, respect for company personnel, and to provide
information about needs and skills, development, quality of production and
work organization.
It also enables employees to get the first impression of the “culture” of the
firm and the kind of people he will have to deal with. At no time does it allow
for questioning or change of system. It, therefore, in no way contributes to
the organization’s growth, nor does it enhance an employee’s ability to
contribute to the organization’s growth. Induction programs are also used for
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in-company promotees, who have to be oriented to the demands of their
requirements.
Induction programs are based on the philosophy that the process of initial
adjustment and entry to the organization is a difficult process. Unless a
conducive and supportive atmosphere facilitates it, it would leave the new
entrant with several uncertainties in his mind and make his assimilation in
organizational life more complex and difficult. Many organizations are
conscious of this and devote considerable effort to make the initial entry
phase a pleasant and cordial one.
Training In Particular Skills
Training of employees for particular skills is undertaken to enable the
employee to be more effective on the job. It is a here-and-now proposition,
somewhat like induction training, which does not have a very significant
development aspect to it. Its aim is narrow-to guarantee a certain
contribution to the job, for instance sales training and machine skills.
Human Relation Training
This is a broad category embracing many different aspects.
Self-learning and inter-personnel competence can be included in this
category-all concerned with generally the same theme. It stresses a concern
for individual relationships, for feeling and treating people as “human
beings”, rather than as machines. Not only is this concern and awareness in
one’s attitudes and behavior conducive to better work-place relations, but
also to enhanced productivity. This category of training is oriented towards
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the development of the individual and consequently the organization’s
efficiency in terms of better teamwork.
Problems Solving Training
Many in-company programmes also revolve around organizational units, like
divisions of branches, which generally handle a product line. The practice is
to hold together all managerial personnel in a particular division/ branch from
the both the headquarter and the field of offices and discuss common
problems and solutions across the table. This not only helps solve problems,
but also serves as a forum for the exchange of ideas and information, which
could be utilized in other situations.
Managerial and Supervisory Training
The managerial job combines both techniques and conceptual knowledge. If
it is that of a specialist, it would emphasize some techniques and knowledge
like operations, research, finance, production, and personnel management.
If on the other hand it is a general management job, then the emphasis
would be on the principles of scientific management: organizing, planning,
staffing, directing and controlling.
Apprentice Training
The apprentice act 1961 was based on the philosophy of providing some
technical training for unskilled people in order that their employment
opportunity is enhanced, or alternatively to help them be self-employed.
Industrial organizations in specified industries are required to train
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apprentice in proportion to their workforce in designated trades. The duration
of training is one to four years.
2.4 LEARNING AND TRAINING
Irrespective of the type or method of training, trainer has to keep in mind
some of the principles of learning or motivation, which would enhance
internalization of what is taught.
Motivation
A trainee needs to have a desire to learn and benefit from the programme. If
he is not interested, or is demotivated, then the learning outcome is going to
be insignificant and the company will have spent its money badly. On the
other hand, being too intense about learning and outcome may result in
setting over-ambitious goals for the individual.
Reinforcement
Following on the concept of motivation is that of reinforcement. For learning
to take place and be internalized to the desired extent, a trainee is rewarded
or given some encouragement. This reinforcement, or the acknowledgement
that what has been acquired is desirable, can be either an extrinsic or
intrinsic reward- external praise or some tangible reward, or the individual’s
feeling of a sense of progress. Current stress is on positive support and
helpful behavior, even when mistakes are made.
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Feedback
During the training process, it is useful for the trainee to be told how he is
progressing. The knowledge of results is, several researchers have
confirmed, an effective motivator. Constant and periodic feedback has
positive effects on the trainee’s learning. Unless the trainee knows how
close his performance comes to the desired standard, he will not have an
opportunity to improve. Feedback, therefore, provides a basis for correcting
oneself. Secondly, feedback helps to sustain the trainee’s interest in the
task, or in the learning that is taking place, by bringing greater involvement
with the learning process. If feedback is to be meaningful, it should follow a
learning segment as quickly as possible.
Transfer of Training
The maximum use of training can be made if the trainee is able to transfer
his learning to his actual work role. This is possible if elements are
incorporated in the training situation from the job role, either existing or
proposed. The more similar the learning situation is to the job situation, the
higher the degree of transfer the trainee can expect, and hence the greater
the relevance of the training programme.
Repetition
Repetition etches a pattern into our memory, e.g., when one studies for an
examination, it is necessary to repeatedly go over ideas so that they can be
recalled later.
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Relevance
Relevance relates to the meaningful use of material, which aids learning,
e.g., trainers usually explain in the overall purpose of a job to trainees before
assigning them a particular task.
2.5 TRAINING POLICY
A company's training policy represents the commitment of its top
management to training, and is expressed in the rules and procedures that
govern or influence the standard and scope of training the organization.
Training policies are necessary for the following reasons.
1. To highlight the firm's approach to the training function, provide guidance
for design and execution, and to provide information regarding
programmes to all employees.
2. Formulation of policy helps in identification of priority areas in training,
and since resources are scarce, they are prioritized according to felt
needs.
3. A training policy document helps to communicate the firm's intent
regarding an employee's career development, and also gives the
employee the opportunity to better his prospects through training.
2.6 POSITIVE OUTCOMES OF TRAINING
The continued effectiveness and efficiency of an organization is to some
extent dependent on the ability of its employees to produce at high levels of
efficiency, and keep abreast with their changing job-role demands. Training
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will provide for an output in this direction. The several positive benefits of
training are that:
- Training helps employees to learn their jobs and attain desired levels of
performance speedily thus cutting costs and contributing to better
utilization of machines and materials, for example in workers' categories.
- Training helps to reduce the cost of raw materials and products-reducing
losses due to waste, poor quality products and damage to machinery-
which would result if an untrained employee were to learn on his own.
- Employee motivation is enhanced when employees known that the firm
would provide them training opportunities to increase their skills and
knowledge, thus enabling them to develop and qualify for higher posts.
Such practices create favorable attitudes towards the organization, which
could result in better adjustment and commitment to one's work and the
organization. Thus cooperation could help reduce employee turnover,
absenteeism, accidents, dissatisfactions and grievances.
- Finally, training aids in the development of individual skills, better
methods, new equipment, and sometimes new work place relationships.
Such a process would also facilitate technological change by updating
the versatility of employees.
2.7 TRAINING METHODS
Training methods are a means of attaining the desired objective in a learning
situation. Given background work such as identification of training needs, a
programme design and its duration (based on these needs), it then becomes
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pertinent to analyze and select the best method or combination of methods,
given the several constraints, to attain the programme objective. The choice
of a method several constraints, to attain the programme objective. The
choice of a method would depend on a wide variety of factors, such as
competence of instructors, relevance to the participants, the programme
design, i.e., is a particular method the best vehicle to put across the
contents, and finally its cost implications.
Numerous training methodologies and techniques have been developed
over the years to meet certain specific needs. Each method has structured
procedures for conduct that offer certain advantages in developing certain
limited facets of a trainee, and suffer from some limitations.
In using a particular method, one should know its strengths and
weaknesses, given the situation, and analyze its relevance, its purpose, and
if it is useful, how to get the most out of it. This would provide the rationale of
the various training methods. The trainer should know the rationale of each
of the methods before attempting to use any of them.
2.8 OBJECTIVES OF TRAINING METHODS
Training methods have a number of overlapping objectives. As stated
earlier, they have to be chosen in relation to the programme design
requirements. The main objectives of individual training methods could be:
demonstration value, developing interest and finally, appeal to senses.
However, more than one, or even all three objectives may be found in one
method.
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Demonstration value
Complete demonstration of job requirements is training of a kind that
enables the trainee to grasp the meaning of ideas, concepts, or procedures
visually. Such a method can be used effectively as an aid to overcome the
"breakdown of communication". People remember things that they see and
hear, much longer than they do information they receive through talks or
reading, alone.
Developing interest
One of the factors to be kept in mind in choosing a method is its ability to
hold and arouse the interest of the trainee in the learning situation. Much
research has been done in the field to test the effectiveness of various
methods. A trainer has to consider alternative methods of presenting training
material to participants in order to stimulate their interest and facilitate
retention of the matter. For instance, if traditionally the matter has been
presented through lectures, perhaps audiovisual methods could be used, or
instead project work be assigned which would mean learning by doing or
researching the subject oneself.
Appeal to many senses
The statement that "to see a thing once is better than to hear it a hundred
times emphasizes the inadequacy of words as a means of communication.
Experience indicates that almost 75 per cent of what we imbibe is through
the sense of sight and the rest is through the sense of hearing, touch, smell
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and taste. From the trainer's point of view it would be beneficial to utilize as
many of the trainee's senses as possible, in order to improve retention of
learning.
Application of these basic objectives or guidelines alone would not be
enough. For the appropriate use of a method, problem analysis and needs
identification are also necessary.
The trainer has to understand and identify the problem area; what is wrong,
and where is the correction needed? He has to examine whether there is a
problem with the manner in which the task is done, i.e., an operational
problem, or whether there is a problem with an individual or individuals, i.e.,
a human-relations problem.
Secondly, selecting the appropriate method would be dependent on the level
of the trainee in an organizations' hierarchy-is he a shop floor worker,
supervisor or a manager?
Finally, before selecting a training method, the trainer should keep the mind
cost effectiveness.
2.9 CLASSIFICATION OF METHODS
Depending on the learning outcome, and the process by which it is attained,
it is possible to categorize the various methods into several groups.
On-the-job-oriented training methods
In this cluster are included methods whose main objective is centered
around the job, more specifically, learning on the job itself by a variety of
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methods. They embrace development through performance on the job,
where organizational strength and constraints, human behavior and
technological systems have full and free play. Methods, which fall into this
category, are:
1. On-the-job training.
2. Job rotation.
3. Guidance and counseling.
4. Brainstorming sessions.
5. Syndicate method (working in small groups).
Simulation methods
Real-life situations are simulated for imparting training. The methods falling
in this category are:
1. Role-play.
2. Case method.
3. Management games.
4. In-basket exercise.
Role Play
The role-play method requires participants to enact roles on the basis of a
written script or an oral description of a particular situation. The enactment
process provides an insight and understanding of the demands and
situations of the assigned role, thereby facilitating empathy with another's
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(actual) role. The main emphasis in management training is in facilitating
better understanding of interpersonal problems, and attitude change. If not
handled well, however, it could degenerate a childish exercise, where,
instead of focusing on the problem to be understood, the situation might be
over-dramatized.
Case method
The case is an actual situation, which is written for discussion purposes.
Analysis would need problem identification, analysis of the situation and of
its causes. There could be several solutions to the problem, and each of
these alternatives and their implications needs to be examined. In the real
world, on many occasions, a manager may not have all the relevant
information with him before taking a decision. Similarly, the case method
approximates this reality and in many situations decisions are taken with
limited data, or what is termed decision-making under uncertainty. The
managerial response in such a situation is explored and understood and
learning consists of developing problem-solving skills.
Management games
The game is built around the model of a business situation and trainees are
divided into teams representing the management of competing companies.
They simulate the real-life process of taking operation decisions. Decisions
taken are analyzed by a computer, or manually, and a series of the
implications of these decisions are fed back. The game is played in several
rounds to take the time dimensions into account.
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In-basket exercise
This is a simulation training technique designed around the "incoming mail"
of a manager. A variety of situations are presented which would usually be
dealt with by an executive in his working day. His reactions and responses
are taken down in writing and then analyzed. Feedback on his decisions
forces him to re-consider not only his administrative actions but also his
behavioral style.
Knowledge-based methods
In this method of training, an effort is made to expose participants to
concepts and theories, basic principles, and pure and applied knowledge in
any subject area. Basically, it is aimed at creating an awareness of the
knowledge of fundamentals. The focus is essentially transmission of
knowledge which has to be imbibed by the participants. The methods in this
category are:
1. Lectures.
2. Seminars, workshops.
3. Educational training programmes at academic institutes.
4. Programmed instruction in which knowledge is disseminated in book
form to be learnt at the individual's pace, and where feedback on the
learning is a given aspect of the method.
5. Films and TV.
6. Group discussion, especially in combination with some of the above, for
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assimilation and integration.
2.10 TRAINING ORGANIZATION
There are several administrative aspects that have to be taken into account
before launching in-house training programme, or nominating participants to
external programmes.
In-Company/External Programmes
The company needs to formulate its thinking regarding participation in
programmes offered by external agencies like educational management
institutes, government institutions and consultant programmes, vis-à-vis
conducting its own in-house programmes. Where employee numbers are
small, it may not be worthwhile to set up a training establishment and
conduct in-house programmes, but as the numbers increase, this options
may offer a distinct possibility. There is the cost aspect to be considered: for
the cost of sending a participant to an external programme, several
employees could be trained within an organization. Yet, the advantage of an
external programme would be a breath of fresh air through discussions with
other participants and a fresh approach could be brought into the
organization and its problems. The skills and techniques learnt might also be
different from those offered by one's own in-house programmes.
Training Budgets
A training budget for each internal programme has to be prepared, which
would include cost of facilities like training room, food, transport, guest
faculty, if any, and cost of teaching materials. In fact, the cost to the
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organization should also include the wages and salaries of employee
participants who would be temporarily pulled out of their regular jobs and
sent for training. Yet, organizational requirements would necessitate their
jobs being done by someone else. The reason for costing the trainee
employee's salary would be that they would not be making any contribution
to the company during the training period, and that this is an additional
burden on the company's finances.
2.11 EVALUATION OF TRAINING
Evaluation of any activity is important, since in evaluating one tries to judge
the "value or worth of the activity, using the information available".
What is the purpose of evaluation? Evaluation, by bringing to the fore
"weaknesses and failures…strengths and successes," helps to improve
training methods. Evaluation helps management to answer the following
questions
- The relevance of the programmes to the organization's needs-what
changes if any should be made in existing programmes to realign to the
organization's needs.
- Feedback on the choice of areas of training will also need to be
examined in the context of its contributions to the organization's
effectiveness.
- Should the money continue to be spent on this activity, or another more
relevant activity that will improve attainment of the organization's
objectives?
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Reactions from trainees about the training programme can help identify its
strengths and weaknesses. These reactions can be used as a base for the
improvement of programmes, but those evaluating must first be definite
about the aspects they are interested in investigating.
An evaluation of a training method or system must also take into account the
suitability of objectives. "If the objectives were inadequately formulated in the
first place, even a 'good' training programme has really no chance to be
effective."
Objectives have to be clear-cut, must relate to needs, and make way for
changes. Objectives cannot be static and need to be re-appraised frequently
so that training may result in improved overall organizational efficiency.
Evaluation of objectives helps to bridge the gap between needs and
objectives.
THE EVALUATION PROCESS
The most useful means of evaluating training are observations, ratings,
trainee surveys and trainee interviews. Observation is concerned with
observing the behavior of people in a certain situation. To be useful, it must
be specific, systematic, quantitative, recorded and expert. Needless to say,
observers, must be trained and have specific ideas about what they are
looking for. This is the most direct method of "assessing the quality of formal
training and of identifying deficiencies".
The second method of evaluation is that of ratings. "Various elements of the
training system should be rated independently by several qualified raters.
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These elements include trainees, instructors, equipment, materials, training
aids and facilities." The use of rating scales requires supervised practice, as
it is easy to commit errors.
The third method is trainee surveys where opinions of the trainees are used
for evaluation. These opinions should not be used independently, since they
cannot always be relied on to be objective.
The fourth method is trainee interviews, whereby ideas and views that
trainees might not put down on paper can be determined by "skilful
questioning". This method allows for more precise information and details to
be obtained and prevents ambiguity, especially in interpretation.
The final method is that of collecting the observations and recommendations
of instructors through surveys and interviews "to ensure that the system is
consistent with the needs of the implementers of the training". Interviews
with instructors will bring to the surface characteristics that instructors may
feel reluctant to put down on paper.
2.12 IS TRAINING THE BEST MEDICINE?
Imagine this: A man is having chest pains. He rush as to his doctor, tells him
he is having a heart attack, and demands that he perform open-heart
surgery. He obligingly agrees. It is not until after a great deal of pain and
expense that he discovers it was only in digestion.
When it comes to training, a similar situation happens all the time. If scrap
rates are too high, productivity is too low, and employees neglect to follow
standard quality procedures, they must need more training. Before rushing
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into the pain and expense of interrupting production to send them off to a
seminar it is necessary to make sure that training is the proper solution.
Just as a doctor must understand the cause of a patient’s symptoms before
he can attempt a cure, one needs to know why employees are not meeting
the company’s expectations before taking action. That’s where a training-
needs analysis will help. It tells how well employees are doing their jobs,
where they could use some improvement and how that improvement can
best he achieved. Done correctly, it can save the company from wasting a
lot of time and money on inappropriate training programs.
Gathering the information
To do a valid training-needs analysis, one needs to gather as much objective
data about employee performance as possible. There are many ways to
collect this information, including:
Casual conversations
Formal interviews
Direct observation
Work samples
Written records
Surveys
Tests
Focus groups
27
A professional trainer can be hired to perform an analysis but it’s not just a
technique for trainers. Everybody should be trained in this simple process.
It’s a supervisor’s or a manager’s job to make sure people can do their jobs.
To do training needs analysis the following steps should be followed:
Study current performance: Before tying to change anything, it’s essential
to know what is already happening. What skills and knowledge do
employees already have? What tasks are they performing on their daily
jobs?
Define ideal performance: what standard of performance is necessary for
the business and the employees to be a success? What tasks must they do?
What level of accuracy or productivity should they achieve? What skills and
knowledge must they have?
Find the gap: What is the difference between the definition of ideal
performance and what the employees are currently doing? Are there any
areas that aren’t functioning as well as they should? Where are there
opportunities for improvement? This is the “performance gap” that the
company is trying to fill. One must look for problems or opportunities that
may occur in future as well as ones that already exist.
Identify the cause: Why are workers not working up to standard? Have they
ever performed the job correctly? Where and when do the problems occur?
Has anything changed recently that might have instigated the problem?
Compare best and worst performers to find the differences in what they do.
28
When these steps have been completed one should be ready to make
diagnosis, but it must be remembered that training is not the only medicine
for ailing performance. Although it is often mistakenly applied as a cure- all,
the only problem that training can solve is a lack of skills and knowledge. Do
employees know how to do the job? Could they do it if their lives depended
on it? If so, probably there is no training problem. There are many reasons
why a worker might not be doing his job correctly, including unclear
expectations, insufficient feedback, lack of incentive and adverse working
conditions. These are all management problems that can only be improved
by management changes.
Too often, people see the gap and they want to just leap right in and fix it.
“The key is not to jump to the solution, which is assumed to be training.
Understanding the situation is the first step. Then, once one understands the
situation one can think about why (The problem exists). Only if it’s because
(employees) lack skills and knowledge should training be considered as a
solution.
2.13 NEW TRENDS IN TRAINING
SELF DIRECTED LEARNING
Organizational support enhances self -directed learning programs. The term
"self -directed learning" describes training in which the learners essentially
guides himself through the learning process using workbooks, manuals, or
computer based training programs. Many companies are switching to this
type of training because it allows for more flexible scheduling, as well as
29
reduced training time and expenses. If we look at the life cycle of classroom
type training, 90% of that life cycle cost is in the delivery, not in the
development. Plus, as people get up there and start to talk, it takes longer
than it does to deliver the training in some other ways. Well-designed self-
directed learning will probably take half the time of classroom instruction. But
even well -designed programs won't achieve optimum results without proper
support. "People [switch to self-directed learning programs] for cost issues,
and a lot of them don't recognize that there are organizational issues that
they have to deal with, "If they don't deal with them, the they’re not going to
get as big a return on their training investment as they could. The following
are tips for supporting set directed learning in a company.
1. Learning is work. Many organizations don't recognize training as real
work. Unlike classroom training, which must have a scheduled time and
place, self-directed learning is often just squeezed in here and there, or
the employee may be forced to take it home.
2. Keep sessions short. All days are much more fragmented than they
used to be "So when self directed modules are developed, there is no
space for two hour or three hour modules. The training needs to be made
into shorter chunks, so that it can fit into the shorter periods of time.
"Training should be long enough to get a concept across, but not so long
that it involves too many once.
3. People need people. Many managers forget about the learners need for
contact with others. Seeing and being seen are very important in the
political environments of today's companies and the classroom is where
30
that often went on. If we take that away from the classroom, we have to
provide some other way for it to happen, because they learn form each
other as well as learning from the class. Meetings, e-mail, and electronic
forums are some ways to compensate for the isolation that self-directed
learners may feel.
4. Combine delivery methods. Self directed learning has many
advantages-but it is not the best choice for every situation. Self directed
learning is much better for knowledge based learning. It can work for
some skill based learning, but there are times when one wants to have
hands on. A lot of your best programs are a combination. For example, a
well-rounded program might start with an introductory session delivered
by satellite. Self directed, computer based training could then get
everybody up to speed on the basic information. Classroom sessions
could then build on that knowledge by teaching hands on skills. The most
important thing is to plan ahead in the initial training needs analysis for
ways to support the unique needs of your self directed learners. That is a
very important part of the needs analysis that is often neglected. We look
at what are the learning objectives, but we don't look at what has to be
taken care of in the organization and culture in order to achieve to those
learning objectives.
2.14 TRAIN, DON'T TELL
Many companies' so-called training programs are little more than one-way
information dumps. Information is transmitted, but the trainees get little
31
guidance on exactly what to do with it or why. As a result, the words float by
in isolation, seemingly detached from the employees' real world of
paperwork and production quotas. Because the information is never used, it
is quickly forgotten.
This problem is compounded, because the human brain processes
procedural knowledge differently from the way it process declarative (telling)
knowledge. The people who are selected [to do training] are often people
who have expertise in doing something. They usually got that expertise
through trial and error, but they try to teach through telling. In other words,
they use declarative methods to teach procedural knowledge. Afterward,
they except trainees to perform the task and they become frustrated when it
doesn't work that way.
Real training is a two way street. It helps the trainee process and practice
new skills, rather than simply dumping information on him. By actively
engaging the trainee's participation, real training converts lifeless information
into meaningful knowledge. The employee understands why the new
knowledge is relevant and has a clear idea of how to apply it. Transforming
telling into training isn't hard, if one includes these six key elements:
Incentives: Employees need to understand what's in it for them. Why
should they do it this way? Demonstrate how the new knowledge or skill
will solve a problem or make them better, faster, and more effective in
their jobs.
Objectives: Make sure trainees understand what the companies wants
32
from them. One of the biggest inhibitors of employee performance is
unclear expectations.
Organization: Organize information to make it easier to remember.
Show how it relates to things they already know. Use analogies,
examples, and mnemonics. Don’t confuse beginners with a lot of
unnecessary details. Instead, focus on the basic steps to gain
performance.
Participation: Encourage them to ask and answer questions. Get them
to try the skills or apply the knowledge for themselves rather than just
memorizing what you say or do. The more they participate, the more they
will learn.
Feedback: Let them know how they're doing. This allows them to correct
mistakes before they become habits. It also helps them gain confidence,
which will encourage them to feel comfortable applying new skills.
Rewards: If they're right, tell them they did well. If they're wrong, praise
them for trying.
Even if there techniques are applied in small, informal ways, employees will
understand what the company wants a lot better, once one stops telling and
starts training.
2.15 TRAINING: MANTRA OF THE NEW MILLENNIUM
In today's scenario, change is the order of the day and the only way to deal
with it is to learn and grow. Knowledge is the potent symbol of the new
millennium and the only way an organization can strive to excel is to realize
33
that success today is not a function of financial muscle or physical assets but
of competent workforce. It is the workforce with high caliber, knowledge and
skills that is hard to duplicate. Employees have become central to the
success or failure of an organization; they are the cornucopia of ideas.
Katz and Kahn (1978) have posited that organizations must have three
behavioral features.
PEOPLE MUST BE ATTRACTED NOT ONLY TO JOIN THE
ORGANIZATION BUT ALSO TO REMAIN IN IT.
People must perform tasks for which they are hired and must do so in a
dependable manner.
People must go beyond this dependable role performance and engage in
some form of creative, spontaneous and innovative behavior at work.
The most important aspect that guides competitiveness in current turbulent
markets in how companies gather, analyze and use information to their
advantage. Thus IT capability that processes and manages information in a
corporate will be the single most effective weapon in the era of information
technology. As organizations shift from being product based to knowledge
based there has been a shift, with accent on knowledge. Employees today
need to adopt skill sets with ease. The knowledge worker of today is in a
constant pressure to compete with redundancy, as knowledge and
information is no longer a prerogative of a few. IT is affecting the people,
process, structure and strategy of organizations. IT acts as an enabler to
capture and disseminate information so that individuals can become
34
knowledge workers. Keeping this in mind ,organizations need to realign their
thought process and give training a fresh look. Things will never be the same
in the e-era.
With the world becoming a global workforce, organizations today have to
compete at the international level. This has redefined job requirements in
terms of skills, competencies and qualifications. Today development of the
employee is a prerequisite to make the employees work for the company
rather than in the company.
Today it is not the aptitude that guarantees success but the attitude.
Employees are being encouraged to learn that it is essential not to control
one's emotions but to manage them and channelize them for their effective
use. Workshops on emotional intelligence are quiet common in the corporate
arena. One offshoot of EQ training is team building. Teamwork is highlighted
in most companies and various outdoor training programs are conducted,
even at the induction training stage, to nurture the team spirit. Other topics
on which training is being encouraged in the new millennium are
communications, computer skills, customer service, ethics and quality
initiatives.
TRAINING IS EVERYBODY'S BUSINESS
Training is not the panacea for all the friction resulting due to change. Yet
efforts in the right direction are definitely worth it, as organizations need to
achieve their goals, maintain them internally and at the same time adapt to
the ever changing environment.
35
Hay Group’s annual survey of the world's most admired companies
identified training as one of the best ways to attract, motivate and retain
talent. Innovation in training methods seems to be a result of that. Traditional
methods of "chalk and talk" are giving way to virtual learning. Global giant
Motorola is reaping benefits of virtual learning. Motorola University is the
most widely benchmarked corporate university in the world. IBM also has a
university for its employees and they are encouraged to learn under the
guidance of "dispersed mentors". Usually companies are turned to the WIN
FM-whats in it for me. Companies like GE, General Motors have their
training department independent of HR. It operates as a separate business
center contributing to the company's profit.
COMPANY PRACTICE IN TRAINING
HCL Every employee receives training for 8 days on an
average.
HR policy is built around Employee Development Growth
& Empowerment (EDGE). It is a consciously developed
program aimed at making Comnet a learning organization.
An exhaustive training module is there to create global
managers where freshly inducted employee follows a
structured path going up with the certification levels from
base line to advanced base line to silver club to finally
become a gold club member -with global level expertise.
36
One way to minimize the danger of a company losing its financial investment
in training is to share the cost with the employee. By asking an employee to
invest partially, one does increase the intrinsic value of the training to the
employee since it is instrumental in career planning and succession
planning.
BENEFITS OF TRAINING ARE EXPANSIVE
Employees and organizations need to realize the importance of contribution
and learning for mutual growth and development. An organization with a
myopic view cannot realize the importance of training. Organizations that
lack vision undergo stagnation, decline and crisis after success. Training is
the answer to deal with the stagnation stage by constantly updating it in
every field. Other benefits of training include.
Hiring appeal: companies that provide training attract a better quality
workforce.
Assessing and addressing any performance deficiency.
Increasing productivity.
Enhancing workforce flexibility. For example, in the IT industry,
employees are sent to different countries for diverse projects and
assignments. Cross-cultural training is essential for them for better
adjustment in the new environment.
Increasing commitment: Training acts as a loyalty booster. Employee
motivation is also enhanced when the employee knows that the
organization would provide them opportunities to increase their skills and
37
knowledge. Business is not just about transactions but is about
relationships.
It gives the organization a competitive edge by keeping abreast of the
latest changes; it acts as a catalyst for change.
Higher customer satisfaction and lower support cost result through
improved service, increased productivity and greater sufficiency.
Training acts as a benchmark for hiring, promoting and career planning.
It acts as a retention tool by motivating employees to the vast
opportunities for growth available in an organization.
In certain cases training can also act as a tool for reward and recognition.
Candidates showing high potential can be trained for advanced training
in their field. Thus one can trace the link of training with performance
appraisal and potential evaluation.
We have moved a long way from the Machine Age. Today what is required
is strategic acumen and cross-functional expertise. Today the workflow is
milestone led. Command and control have given way to facilitation. The
employer- employee relationship in the networked age is a skill contract and
the work is largely cerebral. The benefits resulting due to training prove that
it is time for organizations to discard their parochial view and work towards
developing their human assets. The people factor is the pivot for
organizational growth. Aligning organizational vision to the development of
employee is only possible way to become a success story in an environment
which seems to be reverberating with two words: 'perform or perish'.
38
Chapter-3
COMPANY PROFILE
HCL Technologies is India’s 5th largest and a leading global IT Services
companies, providing software-led IT solutions, remote infrastructure
management services and BPO. Having made a foray into the global IT
landscape in 1999 after its IPO, HCL Technologies focuses on
Transformational Outsourcing, working with clients in areas that impact and
re-define the core of their business. The company leverages an extensive
global offshore infrastructure and its global network of offices in 17 countries
to deliver solutions across select verticals including Financial Services,
Retail & Consumer, Life Sciences (Clinical Research services in CDM and
Biostatistics) & Healthcare, Aerospace, Automotive, Semiconductors,
Telecom and ME (Media & Entertainment). For the fiscal year ending June
30, 2007, HCL Technologies, along with its subsidiaries recorded revenues
of US $ 1.7 Billion and employed 52,000 professionals.
In early 2006 HCL Technologies won a $300 million contract described as
one of the biggest Indian outsourcing contracts at that time, a three-year
deal with European electronics retailer DSG which operates Dixon's stores in
the UK. The deal includes services such as custom applications
development and maintenance, infrastructure management and data center
hosting.
On 20 December 2006, HCL announced a US$200 million deal with the
British arm of European insurer, Skandia. Skandia UK will outsource
39
application optimization, including development, maintenance and support
and remote infrastructure management to HCL. It is said to be one of the
largest offshoring deals in insurance.
During 2005-06, HCL announced three other large multi-service, multi-year
deals: Celestica, Teradyne and Autodesk.
HCL Infrastructure Services Division (also known as HCL Comnet),
specializes in remote IT infrastructure management services.
HCL BPO Services provides a comprehensive range of Voice/Web base
Contact and Front Office Services that span Collections, Sales & Marketing,
Technical Help Desk and Customer Care. It represents HCL Technologies’
most significant strategic business extension and investment to date. HCL
BPO Services currently operates out of various locations in India, Malaysia
and Northern Ireland.
In 2006, HCL Technologies was ranked #1 among the "Best Performing IT
Services Firms" in India while the company's Infrastructure Services Division
was awarded the #2 rank worldwide. These rankings were awarded on the
basis of a survey - Global Services 100 - conducted by Global Services
magazine in association with NeoIT, an outsourcing advisory firm.
In 2007, HCL Technologies was ranked by The Black Book of Outsourcing
as the #1 Infrastructure Management Services Outsourcing vendor in the
world, ahead of vendors such as IBM, Accenture and EDS. HCL was also
mentioned as the only India based vendor in the Top 10 in these rankings.
40
HCL's innovative HR practices, including its famous "Employee First" policy,
have been the subject of case studies by the Harvard Business School
(August 2007) and the London Business School (Spring 2007). In its issue
dated November 19, 2007, Business Week recently featured HCL in an
article titled "The Employee is Always Right", which talks about HCL's
"Employee First" policy.
SMT program
SMT Program is a management program in HCL Technologies that provides
a fast track program with the philosophy of ‘Catching them young and setting
their minds on fire’. The program was formally initiated by ex-HCL HR and
BPO Head, Sujith Bakshi in 1985 based on success achieved with IIM
graduates by HCL in 1970s. The managers from the SMT batches have
been credited with various successes over the years including setting up of
NIIT, various JVs and transnational divisions (Singapore - 1981). The current
CEO of HCL Technologies (software division) - Vineet Nayar is an SMT from
the Batch of 1985.
HCL TECHNOLOGIES - DIFFERENTIATORS
Business Week in one if recent article quotes, '...a more enlightened,
strategic view of global sourcing is starting to emerge as managers get a
better fix on its potential….The new buzzword is 'transformational
outsourcing'. At HCL, we believe that IT driven business innovation,
emergence of new disruptive technologies, business models, and
widespread acceptance of global delivery models are some of the
41
transformational forces at work today. Capitalizing on these trends,
traditional outsourcers are extending their sourcing focus from cost to
innovation, productivity and flexibility, while new segments of outsourcers
are seeking new, technology-enabled transformational gains.
Everyone's talking transformation these days. But what most of them
actually mean is upgradation – i.e. business process improvement, or
service re-engineering at best. True transformation is revolutionary and
directed at core processes, resulting in deep and fundamental change. It
doesn't merely cut costs, or streamline the way a company works – it
radically alters market position by building competitive advantage. IDC in its
report on 'Offshore Application Outsourcing Game' states that the
combination of offshore and on demand creates one of the most compelling
value propositions to help customers move closer to truly dynamic IT. And
HCL is uniquely positioned with its perfect blend of onshore presence and
offshore economics. Building competitive advantage also demands a shift
from the earlier fee-driven/service provider model to a new age, outcome-
based/partnership model.
HCL started questioning the linearity of scale-driven business models
adopted by service providers (largely in the IT application business). The
questioning led us to the belief that the market was rapidly approaching a
point of inflection, that is a point where the volume and value proportionality
would change, opening up new opportunities for service providers who
aspire to focus on value. With this realization, in mid 2005, HCL embarked
on a transformational journey that will focus on value centricity in customer
42
relationships and on leveraging new market opportunities, while creating a
unique employee experience.
The 'Employee First' philosophy at HCL—the first such articulation in the IT
industry—is at the core of our efforts to provide our employees a work
environment and culture they take pride in. HCL is committed to provide all
its employees the same experience that we promise to external customers—
by being proactive and responsive, and through technology and process
innovation. Our HR initiatives strive to provide excellent human resources
leadership and expertise to the organization, as also to attract and retain a
workforce that is diverse, inclusive and committed to creating quality
customer service.
At the core of our Employee First philosophy is the concept of talent
transformation—recognition and enablement of competencies, as opposed
to roles in skilling employees in necessary technical, business and
behavioral areas. The five-fold path describes HCL's comprehensive
employee support structure. Technology is heavily used to create a path that
can be capable of enlightening nearly 40,000 employees. The five fold
unfold the various initiatives of HCL on varied aspects of individual
enlightenment – Support, Knowledge, Empowerment, Transformation and
Recognition.
Our Value Services model adopts a 360 degree approach to customer value
and embeds value centricity in all facets of the HCL customer relationship.
We focus on value culture, creation, engagement, distribution and delivery.
43
Value Culture:- There is no doubt that the most dependable way for a
service provider to create customer value is to have engaged, empowered
and result-oriented employees. We make sure that the working culture not
just encourages individuals for value centricity but gives them enough
support, tools and training for creating value.
Value Creation:- HCL has had a history of leading the industry in creating
and dominating uncontested market spaces. This dominance has been
formalized into a model creating new value for customers through service
innovation. A large portion of our revenue comes from emerging services –
services that we have pioneered in the industry like remote infrastructure
management and engineering and R&D. To ensure the conversion of
excellence and engagement to customer value – we have attempted to
institutionalize the process through a specific intervention. We have unique
framework to create that extra value (beyond base delivery) and at HCL we
call it 'Value Add Framework'. We have successfully rolled this out or select
customers and the success was measured with quantified cost savings
signed off by customer itself.
Value Engagement:- HCL has the flexibility to treat each customer
differently by imbibing the patterns and characteristics of the customer
organization, industry and the geographic spread. The unique flexibility
demonstrated by HCL has resulted in a history of innovative commercial
models (like output based pricing) and global account management
programs to make each relationship yield more business value, than is
normally expected, for both partners.
44
Value Distribution:- HCL has created the ability to distribute value across
the customer's IT landscape through its well-distributed services portfolio,
significant domain strengths, and locally relevant geographic distribution.
Value Delivery:- In the physical world, customers attribute value to delivery
on the basis of reliability, quality, and speed. In the services world, especially
in the IT services world, security is an added expectation. Value delivered is
calculated based on the business benefit delivered by the service provider.
Such value delivery calls for high levels of maturity and customer
satisfaction, and would be difficult to achieve if the outsourcing strategy is
predicated solely on the short term benefits of labour arbitrage. HCL has
geared its Service Delivery Framework, quality systems and information
security capability to meet the maturity levels required in a value centric
world.
In an industry driven by effort based pricing, HCL has taken giant leap with
its commercial models and deal structuring approach. HCL has experience
in working with a wide range of customers in various stages of offshore
maturity to design customized models for them – T&M based models for
projects where accountability and collaboration extent is low (to start with),
output based models and fixed pricing models, and risk/reward based
approach where we collaborate to commit to outcomes through a gain share
or join venture model. At HCL, we believe that if we share the vision, we
must share the risk.
45
Chapter-4
SURVEY ANALYSIS
4.1 TRAINING EVALUATION
How satisfied are you: Excellent
Very Good
Good Fair Needs to Improve
Relevance of courses with respect to your needs?
7 37 18 28 10
Excellent7%
Very Good37%
Good18%
Fair28%
Needs to Improve10%
46
Excellent
Very Good
Good Fair Needs to Improve
How Satisfied are you with the training personnel knowledge and professionalism?
6 7 83 3 1
Excellent6%
Very Good7%
Good83%
Fair3%
Needs to Improve1%
47
Excellent Very Good
Good Fair Needs to Improve
How do you rate the measurable change in knowledge or skills at the end of the training programme?
68 32
Good68%
Fair32%
48
Excellent Very Good
Good Fair Needs to Improve
What Is your ability To solve a “mock” problem at the end of training
1 11 69 19
Excellent1%
Very Good11%
Good69%
Fair19%
To what extent has the training programme helped you to achieve growth in
return on investment (ROI) for the organization?
All the respondents agreed that the training programmes have been effective
in achieving overall growth of the organization.
i. Yearly budget allocation is decided by the head office
ii. Training program is made on the basis of
A: Training calendar as decided by the department heads
B: Projection of any training aids procurement id done on regular
basis
49
C: Normal administrative expenditure are planned through
departments.
iii. Past experience and bench marking with the current scenario
iv. Cost per participant x no. of participants to be trained is pre-planned
Where there any behavior changes experienced after the training
programme .If Yes, please comment?
For some people, training is merely a relief from regular monotony, so
they want to relax during the training days instead of taking it
seriously
Sometimes, participants are sent not on the basis of their needs, but
to satisfy the statistics
If the batch is not homogeneous, it is a problem to maintain the flow in
a training program
Caliber of individuals is of different levels
Mindset
Participants sometimes don’t have the prerequisite background for
training
50
Does the programme provides opportunity for personal development?
Comment
Yes No
89 11
Yes89%
No11%
51
What is the rate of Retention, of knowledge after the end of the training?
Excellent Very Good Good Fair Needs to
Improve
2 17 58 21 2
Excellent2%
Very Good17%
Good58%
Fair21%
Needs to Improve2%
52
Was there any change in motivational and leadership level after training?
How?
Yes No
69 31
Yes69%
No31%
53
Would you recommend HCL’s s training services to colleagues or contacts
within your industry?
Yes No
100 0
Yes100%
54
Chapter-5
CONCLUSION AND RECOMMENDATION
CONCLUSION
At HCL Technologies, Shiv, the Chief Executive Officer, gives his managers
autonomy and challenges in order to develop the best talent.
Some executives believe challenging employees is the best way to develop
talent. Shiv Nadar, 68, has prepared executives at his company, HCL
Technologies, by gradually increasing their responsibilities through
promotions and project work. India-based HCL Technologies is one of two
companies that make up HCL Enterprise, which is also headquartered in
India. HCL Technologies is a leading provider of software and technology
services. The company has more than 28,000 workers in 15 countries. Mr
Nadar, who is chairman and chief executive of HCL Technologies, founded
HCL Enterprise, then known as Hindustan Computers Ltd, in 1976. He
launched HCL Technologies in 1991.
Typical of many technology companies over the past three decades, the
company possesses an entrepreneurial style in which managers are
relatively autonomous. Each of HCL Technologies’ five division heads has
profit-and-loss responsibility for their groups. Before HCL starts considering
someone for a senior role, it wants evidence that the executive is ready. For
example, Vineet Nayar was chief executive of HCL Technologies’
infrastructure business before assuming wider responsibilities as president
of HCL Technologies. There is a fair amount of delegation and
55
accountability, most very highly with responsibilities. Although it is difficult to
measure precisely, Mr Nadar believes that HCL’s talent management has
led to strong growth, largely by ensuring high employee and customer
satisfaction. Revenue rose by 35% from US$568m in fiscal 2004 to
US$764m in fiscal 2005 ending June 30th.
HCL judges individual performance mainly on a division’s financial success.
Groups that are meeting goals and increasing revenue indicate that a leader
is outstanding. But Mr Nadar says standards must be flexible. For example,
HCL may not expect the same profitability for an early-stage initiative as it
does of more established divisions.
The firm also considers how someone achieves results, including how an
executive manages and develops subordinates. This is indicative of the
awards that HCL Technologies consistently wins as one of India’s most
employee-friendly companies, with strong customer service. The company
uses annual 360-degree reviews, in which employees evaluate managers to
measure leadership skills.
Separately, HCL conducts personality assessment tests every year or more
frequently to help gauge potential. HCL seeks executives who are not only
commanding but quick-thinking and innovative. The fast-moving technology
sector requires as much. Based on performance evaluations, a human
resources (HR) staff of 100-200 leaders prescribes development
programmes. Many of the programmes centre on workshops, some of which
are offsite. Mr Nadar participates in offsite planning but not the leadership
workshops. He says that HR executes the talent management strategy and
56
provides ideas regarding development activities. Mr Nadar spends about 30-
40% of his time on talent management. He writes evaluations about his
direct reports, including the chief financial officer and president, and a few
executives one level below. He can pinpoint his best chief executives and
chief operating officer candidates and identify immediate replacements for
other key positions.
HCL also has succession plans that look three and five years into the future
and further beyond. Mr Nadar is a strong advocate of mentoring and ad hoc
coaching. Executives throughout the firm regularly stop by his office for a
cup of coffee. Mr Nadar helps them “pick through a problem”. He believes
that there is a level of bonding at his company that may not exist at firms
outside the region. It is not unusual for Mr Nadar to work at weekends with
his leading executives. He sees some of them socially, although that does
not stop him from making a critical assessment of their work.
But retention is HCL’s main challenge, a reflection of the intense competition
for executives in India. As some top managers have progressed, they have
sought positions with greater responsibility outside HCL. A lot of employees
have left and become CEOs of other companies. HCL has combated the
exodus by increasing compensation, including stock options. HCL also has
difficulty convincing executives to take foreign assignments, despite the fact
that it would help their careers. Mr Nadar says that people resist moving
aboard for cultural reasons. Executives in India feel strong ties to their home
base. To fill management gaps overseas, HCL hires executives from the US,
Japan and Europe.
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HCL technologies is a top tier IT services firm which is placed in the top 5
Indian IT companies is rapidly scaling up its operations globally. The HR
structure and processes are undergoing rapid changes and new HR
opportunities are emerging. Companies have two major assets that are
fundamental to their success. Firstly, it is a product or service that meets the
needs of customers in a way that competitors find it very hard to match and
secondly, it is the highly committed and customer-focussed staff.
HCL Technologies has recently launched a series of human resource
initiatives to help it get 50% of its revenues from the uncontested markets by
’10. The IT major is finding out that this long-term goal could have short-term
benefits, too.
The company has managed to bring down its attrition rate by 25%, its
employees have contributed to significant cost savings for customers, and
the initiatives have helped it win more business from the customers.
HCL Tech’s new HR initiatives included increasing HR support strength by
65% to 1 per 25 employees, introducing systems to solve HR problems
faster, implementing 360 degree appraisal and discarding variable pay for
85% of employees. All these to prepare the employees for a revenue model
that depends on output/impact based billing rather than hourly billing.
These initiatives come on the back of what Mr Nayar believes to be a
fundamental change that’s taking place in the IT market. Indian IT market
jumped from $2 billion in 1999 to 20 time that size now because of a change
from total IT outsourcing to selective IT outsourcing. Even this has become
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commoditized now adding that the focus would shift to adding value - and
sharing risks and rewards with the customers.
While these changes are aimed for future results, the tech major is already
seeing the benefits of these initiatives. They have started measuring value
our employees add in terms of cost savings or contribution to customers
revenues. These would eventually be linked to employees’ financial rewards.
Customers see benefits in these and are more willing to partner with HCL
Tech.
Another immediate benefit was the reduction in attrition levels. Software
engineers get more satisfaction from taking up challenges, adding value,
and contributing something significant, than from merely giving efforts.
Attrition rates have come down by 25% since the start of the programme.
Going forward, it impact would be even higher. HCL expect their focus on
value to attract and retain talent.
RECOMMENDATIONS
From the analysis done in the previous chapter, we can arrive at the
following conclusions:
Training needs analysis is done taking into consideration the views of not
only the superiors, but also the trainees themselves. This was confirmed
from the responses of both the trainees and the trainers. The trainees felt
good that they were involved in the analysis of their own needs and also
said that the management was very co-operative and tried to incorporate
their views and suggestions to the extent possible. Thus, as far as this
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aspect is concerned, the trainees were satisfied with the procedures
followed.
Both the trainers and the trainees felt that the thrust in future should be
on developing people skills and not only functional skills. They also said
that IT would be a focus area.
Many trainees felt that they were not being given adequate training to
keep them abreast of the changing environment.
Most of the times trainees were not involved in the training program
planning.
Both the trainees and the trainers were in agreement on the most
essential elements that go into making a training program successful.
The final ranking obtained is the same in both the cases. This only goes
to show that HCL is aware of the needs of the participants and also
understand what elements are most important for a trainee. For both,
clear objective is the most important element that makes a training
program successful.
We can conclude that HCL’s efforts towards training and development
have been quite successful. The employees are satisfied with the training
activities, but they only feel that they should be involved in the planning
of the Training Program. According to them, their views should be taken
on all issues instead of just informing them that they have to attend a
training program. They should have a say in deciding on the contents,
physical arrangements, etc. This would involve them further in the
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exercise and they would be more open to learning.
Training should be imparted on current issues like change management,
because although the employees are quite satisfied with the training
programs as a whole, they still feel that training should be imparted on
issues that are relevant in the current business scenario.
Training sessions should not be too long, long sessions should be split
up into modules.
Self-directed learning in some areas should be encouraged. This would
save the company’s time and also reduce costs.
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BIBLIOGRAPHY
1. “Personnel Management” by Arun Monappa and Mirza.S.Saiyadain
2. “Learning to Learn”, Sylvia Downs (Handbook on Training and
development by Steve Truelove)
3. Quality Magazine, Training Trends: “Is training the best medicine?”
4. Indiatoday.com website
5. Businessinsider.com website
6. Google search results compilation
7. HCL website
8. Data acquired from HCL employees and HR department
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ANNEXURE
QUESTIONNAIRE
PROJECT: MEASURING TRAINING EFFECTIVENESS
Name of the Respondent: _____________________________________
Department: ________________________________________________
Contact No. _________________________________________________
Address: ___________________________________________________
Training Evaluation
How satisfied are you: Excellent Very Good
Good Fair Needs to Improve
Relevance of courses with respect to your needs?
How Satisfied are you with the training personnel knowledge+professionalism?
How do you rate the measurable change in knowledge or skills at the end of the training programme?
What Is your ability To solve a “mock” problem at the end of training
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To what extent has the training programme helped you to achieve growth in
return on investment (ROI) for the organization?
_____________________________________________________________
_____________________________________________________________
Where there any behavior changes experienced after the training
programme .If Yes, please comment?
_____________________________________________________________
_____________________________________________________________
Does the programme at HCL provide opportunity for personal development?
Comment
Yes No
What is the rate of Retention, of knowledge after the end of the training?
Excellent Very Good
Good Fair
Needs to Improve
Was there any change in motivational and leadership level after training?
How?
Yes No
Would you recommend HCL’s training services to colleagues or contacts
within your industry?
Yes No
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