Chapter I Introduction

TRAINING AND DEVELOPMENT

Employee Training is distinct from management or Executive Development. While the former refers, training is given to employees in areas of operations, techniques and allied areas, while the latter refers to developing an employee in areas of important techniques of the Management Administration, Organization and allied areas.
Training means to continuously nurture the employees or workers towards better performance in a systematic way. This can be either at the work spot or at the workshops. This is mainly to improve the technical skills of the employees or workers. Development means bringing out the actual potentialities and thus willing to high motivation and commitment standards towards work. This will be generally with regard to improvement in the behavioral skills.

CONCEPT OF TRAINING
INTRODUCTION
Every organization needs to have well-trained and experienced people to perform the activities that have to be done. So, every modern Management has to develop Human Resources Development. In a rapidly changing society, employee training is not only an activity that an organization must arrange if it is to maintain a viable and knowledgeable workforce. Training is thus a practical and vital necessity.

MEANING Training is the process of increasing the knowledge and skill of an employee for doing a particular job. Training is short-term educational process and utilizing a systematic and organized procedure by which employees learn knowledge and skills for a definite purpose. Training improves, moulds, changes the employees knowledge, skills, behavior, aptitude and attitude towards the requirement of the job and organization.

OBJECTIVES OF TRAINING Training is mainly job-oriented. To impart the basic knowledge and skill to the new entrants and enable them to perform their jobs well. To teach the employees the new techniques and ways of performing the jobs and operations.

To prepare the employees for higher level task and build up a second line of competent
officers.

NEED FOR TRAINING

Training is considered as a key input for developing manpower in an organization so as to improve their job performance. The need for training arises on account of the following reasons:

To match the employee specifications with the job requirements and organizational needs.

Organizational viability and transformation process. Latest technological advances should be adopted i.e., mechanization, computerization and automation.

Internal mobility from one job to another due to promotion and transfer to employees.

IMPORTANCE OF TRAINING Training is an important process of imparting knowledge to the employees. It helps in improving productive and behavioral pattern. Training is advantageous not only to the organization but also to the employees. Training is vital and necessary activity in all organizations. It plays a large part in determining the effectiveness and efficiency of the establishment.

BENEFITS OF TRAINING PROGRAMME A well-planned and executed Training Programme can provide the following developments: Higher productivity and profitability. Better quality of work and best work methods. Less wastage of time during the learning period. Improves high morale among the employees Personal growth of individuals. Low accident rates. Improves employer employee relations.

PRINCIPLES OF TRAINING
The principles, which have been evolved, can be followed as guidelines to trainees. Clear objectives about the Training Programme are: Training policy for designing and implementing the training programme. Acquisition of knowledge and new skills through motivation. Reinforcement to trainees by means of awards and punishments. Organized material should be properly prepared and provided to the trainees. Learning periods has to be fixed as it takes time to learn. Preparing he instructor who is both good at subject and job. Feedback regarding the performance of the trainees in the jobs. Practicing the skills taught by the trainee. Appropriate techniques related to the needs and objectives of the organization.

METHODS OF TRAINING Training is essential for the smooth economic timely and efficient service of the organization. Training methods or techniques represents the medium of imparting skills and knowledge to the employees. There are two methods of training: 1. On-the-job training methods 2. Off-the-job training methods

ON THE JOB TRAINING This method is also called as Internal Training Method. This is suitable for all levels of employees workers, supervisors and executives. In this method, the employee gets training on the job and at the work place it self the trainee learns while he/she is actually engaged in doing a job. This method is called as learning by doing. Several methods are used to provide on-the-job training. They are: Job rotation Coaching Job instruction Committee assignments

OFF THE JOB TRAINING This method is also called as External Training Methods. These methods are designed and intended to impart training by supplying required knowledge and skill to the employees away from the job and work place. This is an opportunity for freedom of expression for the trainees. Several methods are used to provide off-the-job training. They are: Vestibule training Role playing Lecture method Conference or Group Discussion method Programmed instruction

TYPES OF TRAINING Training is required for several purposes. Accordingly, training programme may be of the following types: o Orientation training o Job training o Safety training

o Promotional training o Refresher training o Remedial training o Individual training o Team training o Business training o Executive training

ASSESSMENT OF TRAINING NEEDS

Training activities must be related to the specific needs of the organization and the individual employees. A Training Program should be launched only after the training needs are assessed clearly and specifically. The effectiveness of a Training Program can be judged only with the help of training needs identified in advance. In order to identify the training needs, a gap between the existing and required levels of knowledge, skills, performance and aptitudes should be specific. The problem areas that can be resolved through training should also be identified.

Training needs can be identified through the following types of analysis: Organizational Analysis Task or Role Analysis Job Analysis Man Analysis

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

The following methods are used to assess the Training Needs: i. ii. iii. Organizational requirements/weaknesses Departmental requirements/weaknesses Job specification and Employee specification

iv. v. vi. vii. viii. ix. x. xi. xii. xiii.

Identifying the specific problems Anticipating the future problems Managements request Observation Interviews Group Conferences Questionnaire surveys Test Check lists Performance appraisal time

These are essential when technical are special information of complex nature is to be imparted. The lectures are supplemented with discussion film, case studies and role-playing.

DESIGNING A TRAINING PROGRAMME In order to achieve the training objectives, an appropriate Training Policy is necessary. A training policy represents the commitment of top management to employee training. It consists of rules and procedures concerning training.

A Training Policy is required: a. To indicate the companys intention to develop its employees. b. To guide the design and implementation of the Training Programmes. c. To identify the critical areas where training is to be given on priority basis. d. To provide appropriate opportunities to employees for their own betterment.

EVALUATION OF THE TRAINING PROGRAMME The effectiveness of an investment in training in needed to be appraised as so much of money is invested in a Training Programme. Management needs to be reassured about the effectiveness of a particular method, instruction, the relation between training cost, proved productivity, general efficiency and effectiveness of a course.

CONCEPT OF EXECUTIVE DEVELOPMENT

Executives are the most valuable assets of any organization. The manager or executive is the dynamic life-giving element in an organization. The success and growth of an organization depends largely on the caliber and performance of its executives. Therefore, systematic and continues efforts are necessary to prepare executives who can successfully meet the challenges of the present and future.

MEANING Executive Development is also called as Management Development. It is a systematic approach of learning and growth by which managerial personnel gain and apply knowledge, skills, attitudes and insights to manage the work in their organizations effectively and efficiently. Executives learn conceptual knowledge, theoretical knowledge and managerial skills in an organized manner. It is largely self development.

OBJECTIVES OF EXECUTIVE DEVELOPMENT The Management Development programmes are organized with a view to achieving specific objectives. They are: To improve the performance of managers at all levels in their present jobs. To prepare managers for the higher jobs in future. To provide opportunities to executives to fulfill their career aspirations. To understand the problems of human relations and improve human relations skill. To stimulate creative thinking.

INDUSTRY PROFILE WIND INDUSTRY Introduction

Wind power is produced by the conversion of wind energy into more useful forms, usually electricity, using wind turbines. In windmills (a much older technology), wind energy is used to turn mechanical machinery to do physical work, such as crushing grain or pumping water. Most modern wind power is generated in the form of electricity by converting the rotation of turbine blades into electrical current by means of an electrical generator. Wind power is used in large scale wind farms for national electrical grids as well as in small individual turbines for providing electricity to rural residences or grid-isolated locations Wind energy is plentiful, renewable, widely distributed, clean, and reduces toxic atmospheric and greenhouse gas emissions if used to replace fossil-fuel-derived electricity. The intermittency of wind seldom creates problems when using wind power at low to moderate penetration levels At the end of 2006, world wide capacity of wind-powered generators was 74,223 MW, although it currently produces less than 1% of the world-wide electricity use, it accounts for approximately 20% of electricity use in Denmark, 9% in Spain and 7% in Germany. Globally, wind power generation is more than quadrupled between 2000 and 2006. WIND SITE REQUIREMENTS

Grid availability. Accessibility for commissioning. Strong terrain / soil for proper foundation / civil work Favorable environmental condition to prevent corrosion & not prone to cyclone.

Financial Benefits
Operation and maintenance costs are low. Zero input fuel cost. Pay back in shorter duration. Cost of generation is almost zero after pay back period. Zero import duty on certain parts. Tax holidays for newer power projects for 5 years.

WIND INDUSTRY IN INDIA Energy is a major input for overall socio-economic development. Use of fossil fuels is expected to fuel the economic development process of a majority of the world population during the next two decades. However, at some time during the period 2020-2050, fossil fuels are likely to reach their maximum potential, and their price will become higher than other renewable energy options on account of increasingly constrained production and availability. Therefore, renewables are expected to play a key role in accelerating development and sustainable growth in the second half of the next century, accounting then to 50 to 60% of the total global energy supply. After the creation of a separate Ministry in 1992, special emphasis was given in the Eighth Plan to generation of grid quality power from renewable. The total installed capacity of power from renewable today stands at nearly 1350 MW with contribution from wind power of nearly 1000 MW. Wind power installations worldwide have crossed 8500 MW producing about 14 billion KWh of energy annually. A total capacity of about 5500 MW has been installed in Europe, 1700 MW in USA, and 992 MW in India. India is now the fourth largest wind power generator in the world after Germany, USA and Denmark. The State of the World 1998, a world-watch Institute Report on progress toward a sustainable society, released earlier this year, has noted that renewable energy production in the world is expanding rapidly. Wind generation is the fastest growing energy source in this decade and is expanding at 25% per year. The Report recognizes India as a new "Wind Superpower". With declining trend of cost and increase in the scale of wind turbine manufacturing, wind promises to become a major power source globally in the first few decades of the new millennium.

MNES (Ministry of Non-conventional Energy Sources) are implementing the world's largest wind resource assessment program, which forms the backbone of their wind exploitation efforts. Preliminary estimates indicate a potential of about 20,000 MW. Scientific surveys are being intensified to identify specific viable and potential sites. A recent study undertaken to re-assess the potential, places it at about 45,000 MW. Assuming a grid penetration of 20%, a technical potential of about 9,000 MW is already available for exploitation in the potential States. 160 sites have so far been identified in 13 States. The States of Rajasthan and West Bengal have also shown wind potential recently. Today, we have a wind power installed capacity of 992 MW in the country, out of which about 940 MW is accounted for by commercial installations. About 3.5 billion units of electricity have been fed to the grid so far. A good local production base for wind turbines now exists in the country, with 15 manufacturing companies active in this sector. Today, the capital cost of wind power projects range between Rs. 4 to 5 crores per MW. This gives a liveliest cost of energy generation in the range of Rs. 2.00 to Rs. 2.50 KWh, taking into consideration the fiscal benefits extended by the Government. The government has introduced a package of incentives which includes tax concessions such as 100% accelerated depreciation, tax holidays for power generation projects, soft loans, customs and excise duty reliefs, liberalized foreign investment procedures, etc. 1. ECONOMIC ADVANTAGES: Revitalizes Rural Economies: Wind energy can diversify the economies of rural communities, adding to the tax base and providing new types of income. Wind turbines can add a new source of property taxes in rural areas that otherwise have a hard time attracting new industry. Each 100 MW of wind development in southwest Minnesota has generated about $1 million per year in property tax revenue and about $250,000 per year in direct lease payments to landowners. Fewer subsidies: All energy systems are subsidized, and wind is no exception. However, wind receives considerably less than other forms of energy. In the 2005 energy bill, for example, of the $14.5 billion tax package, all types of renewable energy and energy efficiency combined received only $4.5 billion while fossil fuels received $5.6 billion. Free Fuel: Unlike other forms of electrical generation where fuel is shipped to a processing plant, for wind energy the generating station, or wind turbine, is installed at the source of fuel. Wind is a native fuel that does not need to be mined or transported, taking two expensive aspects out of long-term energy costs.

Price Stability: The price of electricity from fossil fuels and nuclear power can fluctuate greatly due to highly variable mining and transportation costs. Wind can help buffer these costs because the price of fuel is fixed and free.

Promotes Cost-Effective Energy Production: The cost of wind-generated electricity has fallen from nearly 40 per kWh in the early 1980s to 2.5-5 per kWh today depending on wind speed and project size.

Creates Jobs: Wind energy projects create new short and long term jobs. Related employment ranges from meteorologists and surveyors to structural engineers, assembly workers, lawyers, bankers, and technicians. Wind energy creates 30% more jobs than a coal plant and 66% more than a nuclear power plant per unit of energy generated.

HUMAN RESOURCE DEPARTMENT Mission of HR department: To evolve HR practices that ensure competence and employee satisfaction. Duties Salary administration Maintenance of statutory compliance Maintenance of employees details General administration Maintenance of insurance for all company vehicles, and all other insurance like workmen compensation, GPA, health, travel shield policy, plant and machinery etc except insurance related to wind mills. THE ROLES OF HR PERSONNEL ARE: To collaborate with the senior management to formulate effective human resource strategies, policies and programs to support the Organizations goals and objectives, improve the effectiveness of management processes and address employees needs.

To provide the functional/divisional heads with the information, tools, systems and support services that enable them to effectively manage and develop their human resources to achieve departmental goals

To make available to employees information, tools, systems and support services that enable them to progress their careers in alignment with the goals of the Organization.

TRAINING AND DEVELOPMENT IN VESTAS

The Performance Management System is an ongoing communication process that is undertaken in partnership between the Appraiser and the Appraisee. This partnership is undertaken with the primary objective of achieving the Organization goal, namely, Improved Performance and Results. This process also helps in providing clarity within the Organization of what is expected and how they are to be achieved. The method adopted in Vestas wind Technology is Management By Objectives (MBO) The period of Appraisal is generally 1st June to 31st May, each year with one interim informal review in the month of December The 4 main activities of the Performance Management System in Vestas are: 1. PLANNING 2. MANAGING 3. REVIEWING 4. REWARDING 1. PLANNING: Planning involves identification and agreement of the goals with the Appraiser, while understanding the resources, interdependency and constraints for the job. Along with the goals competencies, work habits and special Achievements are also identified. GOALS Goals or Targets represent what the appraisee is accountable for and in how much period they are expected to deliver.

GOAL SETTING: I. Identify major goals related to the job The Appraiser and the Appraisee should identify the key goals that are achievable. There should be focus on only 5-6 goals for a year. Having more number of goals will divert the attention from the major priorities of the job. Types of Goals a) Operational Goals: These relate to outputs expected of routine, activity based Example: Production Target for a Month/Quarter/Year b) Project/ Assignment Goals: These relate to specific short term or long term initiatives as part of the responsibilities of the job Example: Connecting all the Wind Mills by the end of 2006 c) Self Development Goals: These relate to individual development, where one can earmark the areas of development, either in technical or soft skills Example: Acquiring knowledge of Scientific Modeling of Sites by December 2006

d) People Goals: These relate to interpersonal relationship, inter department interface, team work etc. Example: Improving Customer Satisfaction Index by 20%

e) Quality Goals: These are related to introducing processes or following the defined processes and systems in the area of work. Example: Following the processes and ensuring there are no non conformance reports during quality audits

II. Writing the goals The goals that are set should have SMART characteristics Specific Measurable Agreeable Realistic Time-Bound

COMPETENCIES A Competency is knowledge, attribute or underlying characteristic of a person that enables him to deliver superior performance in a given job or role or situation. Competencies represent HOW a particular job needs to be done. Example: When a Marketing Department Employee is given a target of increasing the sales volume ( 500MW by 2007) then the competency which is seen in him during the Appraisal period is whether he is RESULT ORIENTED or not. WORKHABITS In few kind of jobs work habits play a major role. They should be considered during the Appraisal Period to improve his performance and to meet the Organizations Objectives. They include: Punctuality Uninformed and Frequent Absenteeism Clean and neat performance Politeness Flexibility in accepting work from people Speed in completion of job

SPECIAL ACHIEVEMENTS Special Achievements represents those incidents or occasions where an employee contributes in a significant way, far beyond the call of duty. These are special and are not pre-planned. 2. MANAGING: This is the critical part in the entire Performance Management Process. In this stage Appraiser explains various goals, their importance and the necessity for an employee to meet/exceed pre-agreed levels of performance. Managing is the process where an employee is guided and encouraged to improve performance and achieve targets. There should be openness to give/ receive feedback, to advice, counsel, explanations etc 3. REVIEWING: Reviews are structured opportunities to provide performance feedback to the Appraisee and set the goals for the upcoming period. These are conducted periodically as per fixed schedule. This process is effective only if the Appraise get regular feedback from the Appraiser about the quality of the work. 4. REWARDING: Rewarding to the employees is done based on the Performance Appraisal Rating given to the employees. There will be no automatic increase in compensation and promotions as the employees gain experience. All the increments or promotions are purely based on the performance rating of the employees, Companies Performance criteria, Market Situations and some other policies EVALUATION OF THE EMPLOYEES PERFORMANCE In the process of evaluation of the employee performance, employees are allowed to rate themselves on a scale of 1-4 (1 being the least and 4 being the highest), and then during the Appraisal Interview, the employee Appraiser gives the ratings on the scale of 1-4 based on his performance in achieving Goals, Competencies, Work Habits and Special Achievements. The rating given by the Appraiser is considered the evaluation purpose.

WEIGHTAGE DISTRIBUTION Weight age of Goals Weight age of Competencies Weight age of Work habits : : : 60% 30% 10%

A discretionary weight age of 10% on special achievements can also be given Employees performance is rated on a scale of 1 to 4 based on the ratings given to them by their Appraiser where the representations of the scores are as follows: 1. Poor 2. Average 3. Good 4. Outstanding. RESULTS OF RATING According to this rating, and the deviations in the employees current salary and the market value, his Increments/ Promotions are decided. If he is found that he is capable person of handling more duties then he is given more responsibilities .If the employees rating is found average, then the weakness of the employees are identified and accordingly training is given to the employees If the employees performance is found to be poor then he may be removed from the job

Along with this performance appraisal form the seniors are suggested which areas are in strength these people as well as weaknesses these suggestions are taken into consider according that training is conducted to the members in the organization. In this way vestas is started the training and development of the employees.

CHAPTER 4 Data Analysis and Interpretation

1. Is Training and Development given adequate importance in your organization?

S.NO

OPINION

NO. OF RESPONDENTS

% OF RESPONSE 38% 44% 18% __ 100%

1 2 3 4

To a great extent To a reasonable extent To a small extent Not at all

38 44 18 __ 100

TOTAL

45 40 35 30 25 20 15 10 5 0 No. of respondents

To a great extent To a reasonable extent To a small extent

Not at all

INTERPRETATION
It was found through the response of a major number of employees that, Training was given a reasonable importance in the organization followed by many to a great extent and some to a small extent.

2. Have you experienced any improvement in your self-confidence levels after attending the Training Programmers?

S.NO 1 2 3 4

OPINION To a great extent To a reasonable extent To a small extent Not at all TOTAL

NO. OF RESPONDENTS 30 48 14 08 100

% OF RESPONSE 30% 48% 14% 08% 100%

50 40 30 20 10
Not at all To a great extent To a reasonable extent To a small extent

No. of respondents

INTERPRETATION It was found from the response that major number of respondents experienced improvement in their selfconfidence levels to a reasonable extent followed by many to a great extent and some to a small extent. It was even found that a little number of respondents did not find any improvement in their self-confidence levels.

3. Do you think the Training Programmes are relevant to your work environment?

S.NO 1 2 3 4

OPINION To a great extent To a reasonable extent To a small extent Not at all TOTAL

NO. OF RESPONDENTS 20 64 08 08 100

% OF RESPONSE 20% 64% 08% 08% 100%

70 60 50 40 30 20 10 0 No. of respondents
To a great extent To a reasonable extent To a small extent Not at all

INTERPRETATION It was found from the response that major number of respondents felt that the Training Programmes were relevant to the work environment to a reasonable extent followed by some to a great extent and very little respondents to a small extent and some even felt that the Training Programmes were not at all relevant to the work environment.

4. Were you given prior idea about the training topic when you were nominated for a Training Program?

S.NO 1 2 3

OPINION Yes No Not aware TOTAL

NO. OF RESPONDENTS 58 40 02 100

% OF RESPONSE 58% 40% 02% 100%

60 50 40 30 20 10 0 No. of respondents
Yes No Not aware

prior idea the traini ng topic when they were nomi nated for a Train ing Progr amm e and a very little perce ntage of respo ndent s said that

INTREPRETATION It was found that from the response that major number of respondents were given prior idea about the training topic while some responded that they were not given

they were not aware of it.

5. What type of Training Program you basically attend?

S.NO 1 2 3 4

OPINION Behavioral Environmental Functional All four areas

NO. OF RESPONDENTS 40 06 20 44

% OF RESPONSE 36.36% 05.45% 18.18% 40%

45 40 35 30 25 20 15 10 5 0 No. of respondents

Behavioral

Environmental

Functional

All

INTERPRETATION It was found that many respondents attended for the Training Programs in all the four areas followed by Behavioral, Functional and Environmental. Some employees attended for the Training Programs in two areas also.

6. Are there any changes occurred in the pattern of Training Programmes conducted to you in past five years?

S.NO 1 2 3 4 5

OPINION To a great extent To a reasonable extent To a small extent Not at all Not Applicable TOTAL

NO. OF RESPONDENTS 16 42 20 10 12 100

% OF RESPONSE 16% 42% 20% 10% 12% 100%

50 40 30 20 10
Not applicable To a great extent

To a reasonable extent
To a small extent Not at all

0 No. of respondents
INTERPRETATION It was found from a major number of respondents that changes occurred in the pattern of Training Programs conducted in past 5 years to a reasonable extent followed by some to a small extent and some to a great extent. There are less number of respondents who said that there were no changes in the Training Programs from long time. Some employees did not respond, as their service in the organization is only a few months.

7.

How is the feedback collected?

S.NO 1 2 3

OPINION Questionnaire Interviews Tests TOTAL

NO. OF RESPONDENTS 100 __ -

% OF RESPONSES 100% __ 100%

100 80 60
Questionnaire

40
Interviews

20
Tests

0 No. of respondents

INTERPRETATION
It was found from the respondents that feedback is collected through Questionnaires to a great extent followed by Tests to a small extent. Some said that feedback is collected both by Questionnaires and Tests, but no one responded to Interview feedback. So, feedback is not collected through interviews.

8. Is your feedback considered for further Training Program organized?

S.NO

OPINION

NO. OF RESPONDENTS

% OF RESPONSES 40% 20% 40% 100%

1 2 3
TOTAL

Yes No Not Aware

40 20 40 100

40 35

30
25 20 15
Yes No Not aware

10
5 0 No. of respondents

INTERPRETATION It was found that many number of respondents felt that their feedback is considered for further Training Programs while some felt that their feedback is not taken into

consideration. The remaining employees were not aware or not able to say whether their feedback is taken into consideration or not.
11. Is Training and Development a motivating factor in your organization?

S.NO 1 2 3 4

OPINION To a great extent To a reasonable extent To a small extent Not at all TOTAL

NO. OF RESPONDENTS 12 58 24 06 100

% OF RESPONSE 12% 58% 24% 06% 100%

60

50
40 30 20

To a great extent

To a reasonable extent
To a small extent Not at all

10
0 No. of respondents

INTERPRETATION It was found that major number of respondents felt that Training and Development is a motivating factor in Vestas to a reasonable extent, followed by many to a small extent, some to a great extent. But a little number felt that Training and Development is not a motivating factor in the organization.