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PROJECT REPORT ON A STUDY ON TRAINING AND DEVELOPMENT PRACTICES AT HCL TECHNOLOGIES HCL Submitted to: Submitted by: i

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Page 1: Report Hcl Training

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

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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.

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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

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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

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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

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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

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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

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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

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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.

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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.

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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

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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'.

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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

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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.

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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

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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

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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.

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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.

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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.

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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%

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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%

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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%

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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

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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

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Does the programme provides opportunity for personal development?

Comment

Yes No

89 11

Yes89%

No11%

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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%

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Was there any change in motivational and leadership level after training?

How?

Yes No

69 31

Yes69%

No31%

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Would you recommend HCL’s s training services to colleagues or contacts

within your industry?

Yes No

100 0

Yes100%

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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

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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

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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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