Professional Documents
Culture Documents
Retail Industry
The Indian Retail Industry is the largest among all the industries, accounting for over
10 per cent of the country’s GDP and around 8 per cent of the employment. The Retail
Industry in India has come forth as one of the most dynamic and fast paced industries
with several players entering the market. But all of them have not yet tasted success
because of the heavy initial investments that are required to break even with other
companies and compete with them. The India Retail Industry is gradually inching its
way towards becoming the next boom industry.
The total concept and idea of shopping has undergone an attention drawing change in
terms of format and consumer buying behavior, ushering in a revolution in shopping
in India. Modern retailing has entered into the Retail market in India as is observed in
the form of bustling shopping centers, multi-storied malls and the huge complexes that
offer shopping, entertainment and food all under one roof.
A large young working population with median age of 24 years, nuclear families in
urban areas, along with increasing workingwomen population and emerging
opportunities in the services sector are going to be the key factors in the growth of the
organized Retail sector in India. The growth pattern in organized retailing and in the
consumption made by the Indian population will follow a rising graph helping the
newer businessmen to enter the India Retail Industry.
In India the vast middle class and its almost untapped retail industry are the key
attractive forces for global retail giants wanting to enter into newer markets, which in
turn will help the India Retail Industry to grow faster. Indian retail is expected to grow
25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by
2016. The Food Retail Industry in India dominates the shopping basket. The Mobile
phone Retail Industry in India is already a US$ 16.7 billion business, growing at over
20 per cent per year. The future of the India Retail Industry looks promising with the
growing of the market, with the government policies becoming more favorable and the
emerging technologies facilitating operations.
As the Indian retail industry attempts to do in 10 years what other markets have taken
25-30 years to do, the consequences of India's retail revolution will be felt by all, from
the farmer in a village to a shopper in a high-end mall. More important than the high-
stakes battles being played out in corporate boardrooms is the social and economic
impact that the Indian retail revolution will wreak. Make no mistake, there will be
winners and losers as the retail landscape shifts.
Consumers will clearly win. Long used to shopping in crowded and dusty
marketplaces, they will flock to the air-conditioned havens in droves, attracted by the
convenience of one-stop shopping, a wide range of products to choose from, and
significantly lower prices than they pay today. The savings will likely find their way
back via higher consumption, helping drive the economy. Tax collections will also
increase as more retail sales flow through the organized trade.
Farmers and other suppliers who are able to deliver against the stringent quality
requirements placed on them by modern retail will benefit from higher prices as
middlemen get cut out of the supply chain. Landowners and real estate developers will
laugh all the way to the bank as multi- billion dollar investments compete for limited
supply of space. Branded consumer goods companies are likely to face pricing
pressures as well as competition from the retailer's own label brands.
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Perhaps most concerning is the impact large retailers will have on the small shop.
Over 54 million people are estimated to work in 12 million small shops across the
country, and as market share shifts to the modern trade, their livelihood could be at
risk. KSA Technopak however believes that the impact on traditional retail will be
limited to 300,000 to 500,000 shops in direct range of 4,000 hypermarkets and
supermarkets and the consultancy in fact predicts that the number of traditional retail
stores will increase by 2015.
India is fast becoming the retail destination of the world. According to the
international management consultant AT Kearney, India has emerged as the leader in
terms of retail opportunities. The retail market in India is anticipated to grow to 427
billion USD by the year 2010.
However, the face of the Indian retail industry is changing. India is passing through a
retail boom today. A number of changes have taken place on the Indian retail front
such as increasing availability of international brands, increasing number of malls and
hypermarkets and easy availability of retail space. With the Indian government having
opened up the doors for FDI, the entry of foreign retailers into the country has become
easier. India has come a long way from the traditional Kirana stores and is on its way
to becoming a ‘mall country’.
The major factors fuelling this change are the increase in disposable income of the
people, improving lifestyles, increasing international exposure and increasing
awareness among the customers. India has a large middle class as well as youth
population, which has contributed greatly to the retail phenomenon. The middle class
is considered to be a major potential customer group. The youth are perceived as trend
setters and decision makers. Tourist spending in India is increasing, which has also
prompted the retail boom.
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Food and grocery are the two categories in the Indian retail sector which offer the
most promising opportunities. Apart from this, the other areas where there are vast
possibilities for Indian retailers are jewellery, apparel and consumer durables. Indian
retailers are also trying to create a niche for themselves in areas such as books, gifts
and music. The Indian retail industry is going through a period of golden sunshine.
There are changes in the buyer behaviour of late with the mall culture. The Indian
consumer has always been very discerning. Mr. Gellner is of the view that he does not
see that changing. Of course, the shopping behavior is changing with malls coming
into play, as conversion rates in malls are dramatically lower than in high street. The
Indian consumer has more options than ever before, and he/she exerts their power of
knowledge very
India tops the AT Kearney's annual Global Retail Development Index (GRDI) for the
third consecutive year, maintaining its position as the most attractive market for retail
investment. Furthermore a report by PricewaterhouseCoopers foresees India and
China to continue as the top sourcing hubs in retail and consumer sector in the coming
years.
The Indian retail market, which is the fifth largest retail destination globally,
according to industry estimates is estimated to grow from the US$ 330 billion in 2007
to US$ 427 billion by 2010 and US$ 637 billion by 2015. Simultaneously, modern
retail is likely to increase its share in the total retail market to 22 per cent by 2010.
Continuing the robust growth of the organized retail in India, according to the Credit
Rating and Information Services of India, the industry raked in US$ 25.44 billion
turnover in 2007-08 as against US$ 16.99 billion in 2006-07, a whopping growth rate
of 49.73 per cent.
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India has one of the largest numbers of retail outlets in the world. Of the 12 million
retail outlets present in the country, nearly 5 million sell food and related products.
Thought the market has been dominated by unorganized players, the entry of domestic
and international organized players is set to change the scenario.
Organized retail segment has been growing at a blistering pace, exceeding all previous
estimates. According to a study by Deloitte Haskins and Sells, organized retail has
increased its share from 5 per cent of total retail sales in 2006 to 8 per cent in 2007.
The fastest growing segments have been the wholesale cash and carry stores (150
percent) followed by supermarkets (100 per cent) and hypermarkets (75-80 per cent).
Further, it estimates the organized segment to account for 25 per cent of the total sales
by 2011.
While global majors think through their Indian strategy, local companies are not
wasting any time to get going. The top 10 players are expected to pump in close to
US$20 billion in investment in five years to achieve revenue of between US$50-60
billion. The share of the modern trade is expected to rise to 18% within five years.
Reliance alone plans to invest over US$5.5 Billion in its retail venture, targeting sales
of $22 Billion in five years through a national chain of hypermarkets and supermarkets
in over 700 cities and 6,000 small towns across India. Reliance Fresh targets the large
food & beverage segment with a USP of low prices, wide range and fresh produce. It
took the company just 15 months from planning to execution of the launch in
Hyderabad. Reliance is watching the Hyderabad pilot closely and intends to fine-tune
national rollout based on feedback received here. So far company executives appear
gung-ho with the launch and are focused on saturating Hyderabad with 33 outlets next.
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The Aditya Birla Group is reported to be putting together a blueprint for the second
largest investment in the Indian retail space. The group may invest upwards of US$3
billion to set up 6,000 stores within three years.
Pantaloon Retail, an earlier entrant to retail in India, has aggressive plans to double
its retail space to 8 million sq ft within a year and to 30 million sq ft by 2010. It has 33
Big Bazaar supermarkets and plans to open another 10 by November. Pantaloon
Retail's Food Bazaar is currently the largest supermarket operator in India by value.
RPG Retail has 80 stores now with 500,000 sq ft of retail space and plans to double
this number within a year by expansion to smaller cities with the Spencer's Hyper,
Super, Daily and Fresh brands. RPG also expects to be 10 times its current size within
5 years
Godrej Agrovet and ITC (e-choupal) are large payers focusing on the rural sector.
Godrej plans to launch 1,000 Aadhar stores in rural India by 2010.
Foreign retailers can only enter India by licensing their names or selling franchises to
local companies, a restriction that severely limits the expansion strategies of big-box
stores such as Wal-Mart, Tesco or Carrefour. Eager to get a toehold in the Indian
market, foreign majors are playing ball.
Wal-Mart, and Tesco is reportedly in talks to partner the Bharti Group for retail
operations in India via a master franchise agreement. Wal-Mart is also believed to be
in talks with the Aditya Birla group
Woolworths, Australia's largest retailer has partnered with Infiniti Retail of the Tata
Group to supply products to the Croma chain of consumer appliances and electronics
stores.
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List of Retailers in India across various segments
HYPER MARKET: Big Bazaar, Spencers, Vishal Retail, Magnet, Star India Bazaar,
Shop
CONSUMER DURABLE CHAINS: Viveks, Tata Croma, Vijay Sales, Sumaria and
Sony
COMPANY INVESTMENT
PANTALOON $ 1 BILLOIN
TATA’S $ 8 MLLION
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1.2 INTRODUCTION TO COMAPANY
RELIANCE GROUP
Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of
backward vertical integration – in polyester, fibre intermediates, plastics,
petrochemicals, petroleum refining and oil and gas exploration and production – to be
fully integrated along the materials and energy value chain.
The Group’s activities span exploration and production of oil and gas, petroleum
refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and
chemicals), textiles and retail.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn
and fibre producer in the world and among the top five to ten producers in the world in
major petrochemical products.
The Group exports products in excess of US$ 20 billion to 108 countries in the world.
Major Group Companies are Reliance Industries Limited (including main subsidiaries
Reliance Petroleum Limited and Reliance Retail limited) and Reliance Industrial
Infrastructure Limited.
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PRODUCTS & BRANDS
The Company expanded into textiles in 1975. Since its initial public offering in 1977,
the Company has expanded rapidly and integrated backwards into other industry
sectors, most notably the production of petrochemicals and the refining of crude oil.
The Company now has operations that span from the exploration and production of oil
and gas to the manufacture of petroleum products, polyester products, polyester
intermediates, plastics, polymer intermediates, chemicals and synthetic textiles and
fabrics.
The Company from time to time seeks to further diversify into other industries. I the
Company approved a plan to establish a retail business through a subsidiary Reliance
Retail Limited that will operate, among other things, supermarkets, convenience stores
and specialty stores across India. The Company approved initial expenditure of US$
750 million to fund the initial stages of this plan.
Petrochemicals business
Others
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“Between my past, the present and the future, there is one common factor: Relationship and
Trust. This is the foundation of our growth.”
Dhirubhai H. Ambani
Mukesh D. Ambani
Chairman & Managing Director
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The Reliance Group’s Retail Venture
On June 26, 2006, Mukesh Ambani (Ambani), Chairman and Managing Director,
Reliance Industries Limited (RIL), announced his company’s plans to foray into the
retail sector with an initial investment of US$5.6 billion.
The retailing business was to be carried out through Reliance’s retail arm, Reliance
Retail Limited (RRL). Commenting on its retail venture, Ambani said, “Organised
retailing will be an overarching theme of the expansion and growth of Reliance in
the near-term future.”
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Mukesh Ambani, Chairman Reliance Industries Ltd at Reliance Fresh
Store in Banjara Hills, Hyderabad. Raghu Pillai, CEO Reliance Retail
India Ltd behind in Blue T-shirt.
Reliance Retail at present operates the Reliance Fresh and Reliance Digital
formats and is expected to launch it’s by the first week of August. When
contacted a Reliance spokesperson hypermarkets refused to comment.
Reliance also had plans to open restaurant outlets within its stores. Reliance
expected a revenue target of US$ 20 billion through its retail operations by
2010. Over a span of five years, RRL expected a 20 percent return on
investment. Reliance also had plans to enter the personal finance services
through its retail arm in order to tap the growing consumer loan segment.
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RELIANCE FRESH
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Reliance Fresh is the convenience store format which forms part of the retail business
of of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans
to invest in excess of Rs 25000 crores in the next 4 years in their retail division. In
November 2006, RRL launched its first set of 11 retail stores under the ‘Reliance
Fresh’ format at Hyderabad. The company already has in excess of 560 reliance fresh
outlets across the country. These stores sell fresh fruits and vegetables, staples,
groceries, fresh juice bars and dairy products.
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The retail initiative of Reliance will be without a parallel in size and spread and make
India proud. Ensuring better returns to Indian farmers and manufacturers and greater
value for the Indian consumer, both in quality and quantity, will be an integral feature
of this project. By creating value at all levels, we will actively endeavor to contribute
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to India’s growth. The project will boast of a seamless supply chain infrastructure,
unprecedented even by world standards. Through multiple formats and a wide range
of categories, Reliance is aiming to touch almost every Indian customer and supplier.
Reliance Retail opens 700 store in 2 yrs Reliance Retail, promoted by Reliance
Industries, has opened 700 stores in 14 different formats in 60 cities of the country in
the last two years of its operation. Its food and grocery chain Reliance Fresh has 600
stores across the country.
Ten months after it launched grocery stores under the Reliance Fresh brand name,
Reliance Retail has embarked upon operational restructuring. According to sources,
the company is mulling converting its 216 partly franchised stores into company-
owned outlets with franchisees possibly brought on the company payrolls. The reason
for the change is difficulties in manpower scheduling.
Reliance Retail is also evaluating other models, such as one under which the
franchisee might continue on a revenue-sharing model despite being on the company’s
roles. The switchover is bound to have an impact on the retail market since the
franchise model is seen as a popular move to co-opt shopkeepers, neutralizing the
charge that big retailers will eventually displace small retailers. In fact, Bharti Retail,
the Sunil Bharti Mittal group’s retail venture with US retail giant Wal-Mart, has also
expressed its intent to co-opt kirana stores by implementing a franchise model for its
convenience stores. The Aditya Birla group and Tata Woolworths are also likely to
focus on the franchise model for their proposed stores.
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Energy Conservation
Corporate Citizenship
Reliance believes that any business conduct can be ethical only when it rests on the
nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust,
Responsibility, Citizenship and Caring.
The essence of these commitments is that each employee conducts the company’s
business with integrity, in compliance with applicable laws, and in a manner that
excludes considerations of personal advantage.
We do not lose sight of these values under any circumstances, regardless of the goals
we have to achieve. To us, the means are as important as the ends.
Training plays a vital role in enhancing the efficiency, productivity and performance
of all our employees. The programs are so effective that Reliance executives have the
ability to execute world-class projects in record time. Over 68,600 mondays of
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In order to improve professional excellence as well as develop all-round management
skills of our employees, they have developed strong associations with several reputed
institutions.They also conduct special Manufacturing Programs for our senior
executives in association with leading global consultants.
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1.3 INTRODUCTION TO TOPIC
Employee Training tries to improve skills, add to the existing level of knowledge so
that employee is better equipped to do his present job, or to prepare him for a higher
position with increased responsibilities. However individual growth is not and in ends
in itself. Organizational growth need to be measured along with individual growth.
Training refers to the teaching or learning activities done for the primary purpose of
helping members of an organization to acquire and apply the knowledge skills,
abilities and attitude needed by that organization to acquire and apply the same
broadly speaking training is the act of increasing the knowledge and skill of an
employee for doing a particular job. In today’s scenario changes the order of the day
and the only way to deal with it is to learn and grow. Employees have become central
to success and failure of an organization they are the cornucopia of ideas.
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In addition to the basic training required for a trade, occupation or profession,
observers of the labor-market recognize as of 2008 the need to continue training
beyond initial qualifications: to maintain, upgrade and update skills throughout
working life. People within many professions and occupations may refer to this sort of
training as professional development. This activity is both focused upon, and
evaluated against, the job that an individual currently holds.
EDUCATION: This activity focuses upon the jobs that an individual may potentially
hold in the future, and is evaluated against those jobs.
Increases knowledge and skills for doing a particular job; it bridges the gap
between job needs and employee skills, knowledge and behaviors.
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Focuses attention on the current job; it is job specific and addresses particular
performance deficits or problems
Purpose Of Training
Training is needed to bridge the gap between what the employee has and
what the job demands.
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Training is needed for employees to gain acceptance from peers (learning a
job quickly and being able to pull their own weight is one of the best ways for
them to gain acceptance).
Trained workers can work more efficiently. They use machines, tools, and materials in
a proper way. Wastage is thus eliminated to a large extent. There will be fewer
accidents. Training improves the knowledge of employees regarding the use of
machines and equipment. Hence, trained workers need not be put under close
supervision, as they know how to handle operations properly.
Trained workers can show superior performance. They can turn out better
performance. They can turn out better quality goods by putting the materials, tools and
equipment to good use. Training makes employees more loyal to an organization.
They will be less inclined to leave the unit where there are growth opportunities
Training makes an employee more useful to a firm. Hence, he will find employment
more easily. Training makes employees more efficient and effective. Training enables
employees to secure promotions easily. They can realise their career goals
comfortably. Training helps an employee to move from one organization to another
easily. He can be more mobile and pursue career goals actively. Employees can avoid
mistakes, accidents on the job. They can handle jobs with confidence. They will be
more satisfied on their jobs. Their morale would be high.
Thus, training can contribute to higher production, fewer mistakes, greater job
satisfaction and lower labour turnover. Also, it can enable employees to cope with
organizational, social and technological change.
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METHODS OF TRAINING
The most widely used methods of training used by organizations are classified into
two categories: On-the-Job Training & Off-the-Job Training.
Projects:- Employees join a project team - which gives them exposure to other parts
of the business andallow them to take part in new activities. Most successful project
teams are "multi-disciplinary
Coaching:- It is learning by doing. In this, the superior guides his sub-ordinates &
gives him/her job instructions. The superior points out of the mistakes & gives
suggestions for improvement.
Job Rotation:- In this method, the trainees move from one job to another, so that
he/she should be able toperform all types of jobs. E.g. In banking industry, employees
are trained for both back-end &front-end jobs. In case of emergency, (absenteeism or
resignation), any employee would be ableto perform any type of job.
OFF THE JOB TRAINING -Under this method of training, the trainee is
separated from the job situation and his attention is focused upon learning the
material related to his future job performance. Since the trainee is not distracted
by job requirements, he can focus his entire concentration on learning the job
rather than spending his time in performing it. There is an opportunity for
freedom of expression for the trainees. Off-the-job training methods are:
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Vestibule training: In this method, actual work conditions are simulated in a
classroom. Material, files and equipment - those that are used in actual job
performance are also used in the training. This type of training is commonly
used for training personnel for clerical and semi-skilled jobs. The duration of
this training ranges from a few days to a few weeks. Theory can be related to
practice in this method.
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CHAPTER-2 LITERATURE REVIEW
This study enunciates the importance, need of review of literature and the related
review of studies to the topic. Management Education in India is of a comparatively
recent origin. In the last two decades there has been a rapid growth in the number of
institutions offering management education. With the diversion of sizeable
economics and human resources in this strategic area of national development, there
should be simultaneous endeavors to explore and study the various factors that affects
management training, right from the identification of the training needs, selection of
suitable trainees, the modus operandi of the training process, the supportive climate
provided to the trainees in the organization the subsequent impact of the course on
Franco Gandolfi in the year (2006)1 has done his research in the topic
“TRAINING AND DEVELOPMENT IN AN ERA OF DOWNSIZING” and he has
analyzed that downsizing as a restructuring strategy which has been actively
implemented for the last three decades. While employee reductions were utilized
mainly in response to crises prior to the mid 1980s, downsizing developed into a
fully-fledged managerial strategy for tens of thousands of companies in the mid to
late 1980s. Since then, downsizing has transformed the international corporate
landscape and affected the lives of hundreds of millions of individuals around the
world. While the overall effects of downsizing have been widely reported, many
misconceptions surrounding the concept of downsizing have remained. This
conceptual paper focuses on the role of training and development (T&D) during the
downsizing process. In particular, the research depicts the current body of literature
associated with the function of HR and its plans, programs, and policies that firms
adopting downsizing must provide to their surviving workforces. Finally, this paper
offers concluding comments regarding effective downsizing practices that have
emerged in the literature.
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David McGuire and Mammed Bagher in the year (2006)2 has done their
research in the topic “DIVERSITY TRAINING IN ORGANIZATIONS: AN
INTRODUCTION” and has reviewed the literature on diversity training and examine
the effect of power, privilege and politics of diversity in organizations. This is a
conceptual paper examining the arguments in favor and against diversity training in
organizations. It identifies the presence of dominant groups in society leading to the
marginalization and oppression of minority diverse groups. Diversity training has a
significant role to play in fostering greater equality, inclusion and fairness in the
workplace. Critically, it can help diverse individuals and communities recoup
important aspects of their identity and enjoy productive fulfilling careers in the
workplace. Diversity fosters a new outlook in organizations through capitalizing on
the perspectives of all employees and giving voice to silenced minorities. It promotes
greater understanding, communication and the integration of different worldviews in
decision making and problem solving. To embed diversity effectively in
organizations requires leadership by senior management and a realization that
diversity will improve performance metrics, rather than simply being a socially
desirable ideal. It involves recognizing that promoting diversity and an inclusive
culture is a shared responsibility and is not solely the preserve of diversity advocates
or HR departments. Finally the author says that as globalization effects increase and
the participation of diverse groups in the workplace grows, there is a clear need in the
field of Human Resource Development (HRD) to commit to promoting the cause of
diversity. Diversity needs to become a priority item on the HRD agenda through
embedding diversity into the curricula of HRD programs.
Thomas Anderson (2007)3 has done his research in the topic “struggles of
managerial being and becoming (experiences from manager’s personal development
training)”and has reviewed this paper to investigate the struggles of managerial
identity in relation to the process of becoming/being a manager, and the personal
conflicts involved with in this process. Management training tends to be based on the
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idea that management concerns the acquisition of competencies, techniques and
personal awareness, while managerial practice is more fluid and contextually based.
There is a challenge for organizers of all types of management training to bridge gap
between a fixed idea of what is to be a manger and how managements actually
practiced. The methodology used in this paper is a qualitative longitudinal project.
The longitudinal and in-depth qualitative approach facilities an important
contribution to understanding issues in developing a managerial ability. On the
whole62 interviews and eight half-day observations were conducted. The study
focuses on only five managers in two organizations. This small sample limits the
generalisability of the research. Finally the study puts emphasis on the role of
management training improving templates for “how to be a manger”, but it also
illustrates the double-edged and complex role played by context in managerial being
and becoming.
Cary Cherniss (2008)4 has done their research in the topic “process–designed
training: a new approach for helping leaders develops emotional and social
competence”and they have evaluated the effectiveness of a leadership development
program based on International Organization for Standardization (ISO) principles.
The program utilized process-designed training groups to help participants develop
emotional and social competence. The study involved 162 mangers from nine
different companies in a random assignment control group design. There were nine
different groups with nine managers in each group. Each group was required to
follow the identical process. The paper offers recommendations for future research on
the mechanisms underlying the process-designed group strategy and contextual
factors that optimize results. This paper describes a leadership development strategy
that appears to be more economical and consistent in its delivery than traditional
approaches such as workshops or executive coaching. Although ISO principles are
utilized widely in the business world, this is the first study that has used this approach
in the design and delivery of management development.
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Pilar Pineda (2009)5 has done his research in this topic “evaluation of training in
organizations: a proposal for an integrated model” and the author’s purpose of this
paper is to present an evaluation model that has been successfully applied in the
Spanish context that integrates all training dimensions and effects, to act as a global
tool for organizations. This model analyses satisfaction, learning, pedagogical
aspects, transfer, impact and profitability of training and is therefore a global model.
The author says that training is a key strategy for human resources development and
in achieving organizational objectives. Organizations and public authorities invest
large amounts of resources in training, but rarely have the data to show the results of
that investment. Only a few organizations evaluate training in depth due to the
difficulty involved and the lack of valid instruments and viable models. The paper’s
approach is theoretical, and the methodology used involves a review of previous
evaluation models and their improvement by comparing their application in practice.
The author has also applied the model successfully in several public and private
organizations, in industry and in the services sector, which demonstrates its
usefulness and viability in evaluating the results of training. Therefore, this
evaluation model has interesting and practical implications, as a useful tool for
training managers in evaluating training results, as well as providing a global
simplified approach to the complex evaluation function. The originality of this
evaluation model lies in its focus on a key and novel aspect – i.e. the pedagogical
dimension, providing an integrated tool that can be easily adapted to any
organization.
Eugen Rotarescu in the year (2010)6 has reviewed on the topic “alternative
selection under risk conditions in human resources training and development through
the application of the estimated monetary value and decision tree analysis”. The topic
is the presentation in a succinct and applicative manner of several decision making
processes and the methods applied to human resources training and development in
environments with risk factors. The decisions have been
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optimized by the human resources training and development, the decision makers
have readily available with two methods of analysis they are:
(2) The decision tree method. Both methods compute the alternatives based on the
estimated monetary value (EMV).
Finally the decision matrix and the decision tree analyses represent two viable,
scalable and easily applicable framework analyses for selecting the optimum course
of action regarding the training and development of human resources. Both analyses
generate the same solution and rely on the accuracy of the expected monetary value
(EMV) method calculated for each course alternative action. Of these two methods,
the selected decision method depends on the circumstances, the complexity of the
situation and preference of the Decision maker.
Muhammad Zahid Iqbal ET. all in the year (2011)7 has done their
research in the topic Their analysis is about the relationship be teen characteristics
and formative evaluation of Training. This study attempted to signify the use of
formative training evaluation. The authors have carried out a study at three public-
sector training institutions to empirically test the predicted relationship between the
training characteristics and formative training evaluation under the Kirkpatrick model
(reaction and learning). This study explains the causal linkage between components
of formative training evaluation, the mediating role of reaction in the relationships
between training characteristics and learning was also investigated. The principal
finding revealed that a set of seven training characteristics explained 59% and 61%
variance in reaction and learning respectively. All training characteristics were found
to have a positive impact on reaction and learning except training content
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CHAPTER – 3 RESEARCH METHODOLOGY
Meaning of Research
A research process consists of stages or steps that guide the project from its
conception through the final analysis, recommendations and ultimate action. The
research process provides a systematic, planned approach to the research project and
ensures all aspects of the research project are consistent with each other. Research
studies evolve through a series of steps, each representing the answer to a key
question.
Every organization needs to have well trained and experienced people to perform the
activities that have to be done. This is the most important aspect of Human Resource
Management. It is widely known that Human Resource Management helps people to
expand their capabilities and offer numerous opportunities. It is also felt that the
expanded capabilities and opportunity for people at work will lead directly to
improvement in operating effectiveness. The human resources approach means that
better people achieve better results. But when this is not the case, it is necessary to
raise the skill levels an increase the versatility and adaptability of employees.
Inadequate job performance or a decline in productivity or changes resulting out of
job redesigning or a technological break –through require some type of training and
development effort.
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DEFINING THE RESEARCH PROBLEM
Statement of Problem
“To study how employees are trained and developed with skill gap analysis in
Reliance Fresh”.
To pinpoint if training will make a difference in productivity and the bottom line.
To decide what specific training each employee needs and what will improve his
or her job performance.
To differentiate between the need for training and organizational issues and bring
about a match between individual aspirations and organizational goals.
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Justification of the study
This study will help to know how the training and development programs are
conducted at RELIANCE FRESH. It will help the researcher to know which category
of employees is targeted for training, to know the quality of training imparted to
employees. It will also help to know about training based appraisals given to
employees as well as the degree of interference during the training session. This study
will help the researcher to gain practical knowledge which is not possible through
books.
Primary objective
Secondary objective
To bridge the gap between actual and desired levels of skills, knowledge and
behavior.
Limitations
It is a brief conducted during short span of time. In order to know the depth one
requires a lot of information, money and involvement of manpower. As is the case
with every research effort, this study also leaves a lot of room for further
improvements. The major Limitations of this study are given below.
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Due to non- corporate nature of some of the organizations, project could not be
undertaken at the external level.
Biases in the responses cannot be rules out as the questionnaire were only
filled by the managers and workers of the sample taken.
Research Design
This report propose to conduct an intensive secondary research to understand the full
impact and implication of the industry, to review and critique the industry norms and
reports, on which certain issues shall be selected, which remain unanswered or liable
to change, this shall be further taken up in the next stage of exploratory research. This
stage shall help me to restrict and select only the important question and issue, which
inhabit the growth in the industry.
Research Types
o Descriptive Research
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o Exploratory Research
Research Process
34
SOURCES OF DATA COLLECTION
Primary Data
New data gathered to help solve the problem at hand. As compared to secondary data
which is previously gathered data. An example is information gathered by
questionnaire. Qualitative or quantitative data that are newly collected in the course of
research consists of original information that comes from people and includes
information gathered from surveys, focus groups, independent observations and test
results. Data gathered by the researcher in the act of conducting research.
This is contrasted to secondary data, which entails the data gathered by someone other
than the researcher information that is obtained directly from first- hand sources by
means of surveys, observation or experimentation.
Secondary Data
Information that already exists somewhere has been collected for another purpose.
Sources include census reports, trade publications, and subscription services. There are
two types of secondary data: internal and external secondary data. Information
compiled inside or outside the organization for some purpose other than the current
investigation Researching information, which has already been published? Market
information compiled for purposes other than the current research effort; it can be
internal data, such as existing sales-tracking information, or it can be research
conducted by someone else, such as a market research company or the
U.S. government.
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STEPS INVOLVED
Collection of information.
Analysis of information.
Data Collection
Data collection took place with the help of filling of questionnaires. The questionnaire
method has come to the more widely used and economical means of data collection.
The common factor in all the varieties of the questionnaire method is the reliance on
verbal responses to questions, written or oral. I found it essential to make sure the
questionnaire was easy to read and understand to all spectrums of people in the
sample. It was also important as researcher to respect the samples time and energy
hence the questionnaire was designed in such a way, that its administration would not
exceed 4-5 minutes. These questionnaires were personally administered.
The first hand information was collected by making the people fill the questionnaires.
The primary data collected by directly interacting with the people. The data was
collected by interacting with 100 respondents who filled the questionnaires and gave
me the required necessary information. The respondents were farmers, businessmen
etc. the required information was collected by directly interacting with these
respondents.
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SAMPLING TECHNIQUES
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CHAPTER-4 DATA ANALYSIS AND INTERPRETATION
SWOT ANALYSIS
Another factor which comes under consideration is the SWOT analysis of the
company SWOT stands for strengths weakness opportunities and threats.
STRENGTHS
Consolidations
There are only two main players of in petrochemicals and a solid consolidation has
been seen in last few years as 85% of polymer capacity is with these companies
namely reliance and haldirams.
WEAKNESS
The input prices form nearly 50-60% of the raw material costs. Reliance being a
petrochemical player does not have much of a negotiating power counter to the
suppliers. Therefore they always remain unprotected to the prices of the raw material.
As there is an increase in the input cost therefore the companies are not able to offer
any price reductions or bargains to the customers.
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OPPURTUNITIES
Currently, domestic per person polymer consumption is nearly 4 kgs while if we see
the global average it is nearly 20 kgs. This tells the fact that there is huge scope of
volume expansion in INDIA as the market to be selected is very massive therefore
there is a massive scope of product development. Also, currently, India has a
chemicals trade deficit of about US$ 1.5 bn a year, which leaves enough investment
opportunities in the industry.
THREATS
Customs duties
The polymer industry has a protection from overseas competition by leveraging high
import duties imposed by the government. However, of late, Import duty on polymers
has been steadily reduced and is currently at 20%. As part of its commitment to
various multilateral and bilateral trade agreements, the government is likely to reduce
duties.
PEST ANALYSIS
Political
Economic
Social
Technological
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POLITICAL FACTORS
Political factors include government policies relating to the industry, tax policies, laws
and regulations, trade restrictions and tariffs etc. As in any part of the world, political
influence is highly essential to start a business in India. Especially if you are planning
to start a multi-billion business, some sort of political patronage is an absolute
necessity. Not only for safeguarding the interest of the company but even to begin the
process of getting the required sanctions, one requires hold in the high echelons of
politics and administrative circles.
Reliance industries also hold a high echelon of political and administrative circles so
as to safeguard the interest of a company and for getting the required sanctions.
ECONOMICAL FACTORS
The economic factors relate to changes in the wider economy such as economic
growth, interest rates, exchange rates and inflation rate, etc. These factors comprise of
Government intervention in the free market, infrastructure quality, economic growth
rate, availability of labour, wage rate of labour.
SOCIAL FACTORS
Social factors often look at the cultural aspects and include health consciousness,
population growth rate, age distribution, changes in tastes and buying patterns, etc.
Safety of a person overrides all the production targets' is the Health, Safety and
Environment Policy of Reliance.Occupational Health Centres (OHCs) have been
established to provide education on health and awareness issues, diagnostic camps
and health exhibitions are also arranged. RIL also offers periodic medical examination
of all the employees (including Contractors' employees) along with their family
members. In case of any hospitalization, RIL employees are supported by consistent
co-operation and cashless
40
hospitalization amenities from one corner of a country to another. The company also
provides fully equipped hospitals in all its major townships. The company also helps
conduct Periodic potable water sampling analysis and health audits for the canteens
and guest houses.
A new initiative was launched by RIL called (CASHe) programme i.e. Change Agents
for Safety, Health & workplace Environment. This initiative was launched to promote
healthy workplaces and reduce health and safety risks. It has also facilitated the
Syndicate to advance its enactment on the occupational health and safety front.
The company’s long term objective is to address all environmental initiatives as they
want to become more positive about water conservation, carbon neutral and conduct
the maximum possible recycling and reuse of wastes. The company has further been
reinforced in context of company’s management framework with roles
responsibilities, group standards and defined structures.
TECHNOLOGICAL FACTORS
The technological factors relate to the application of new inventions and ideas such as
R&D activity, automation, technology incentives and the rate of technological
changes. RIL has always laid emphasis on R&D, technology development and
innovation. The reliance Group (RTG) undergoes various research and technology
functions which help them produce improved value supply by leveraging all the
abilities, and creating new prospects at the interfaces.
At the time of recession also RIL did not even step back their zeal to innovate helped
them convert the adversity into an opportunity. This initiative not only helped in
combatting the challenges with a win but also identified serial ideators; the enterprise
facilitated them by rewarding them for their leadership.
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Advantages of PEST analysis:
By making effective use of PEST analysis, one can ensure success in business.
PEST analysis helps in making lawful decisions for the companies which are
willing to enter into a new market.
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4.1 Awareness about the training.
Particulars Percentage
percentage
11%
89%
INTERPRETATION
As shown in the graph 11% of the workers are unaware about the main training in the
company, though most of them gave i.e. nearly 89% of the workers were able to
answer the question properly but still few of them they have to be given the
knowledge of their training, so that they can understand that having different types of
training means they have to be efficient to fulfill the requirements of different work.
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4.2 Degree of training objectives being met.
No. Of employees 2 3 5 48 12
% 3 4 7 69 17
Degree of Training
3%
17% 4% 1-STRONGLY DISAGREE
7%
2-SOMEWHAT DISAGREE
4-SOMEWHAT AGREE
69%
5-STRONGLY AGREE
INTERPRETATION
69% employees think that the purpose or the objective for which a training program is
conducted is achieved to a great extent where as 4% to 7% of the employees do not
think so. They believe that somewhere something remains untouched in the session
that needs to be covered for the success of the program.
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4.3 Method is used in reliance industries ltd. for training.
1 Job rotation 20
2 By conference 30
3 By case study 10
4 By lecture 40
particulars
job rotation
by conference
by case study
by lecture
INTERPRETATION
From the above analysis we know that reliance use maximum (d) option
i.e. lecture forthe training purpose. After private firms reliance use
conference then job rotation and last case study.
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4.4 Feedback about the effectiveness of the training program.
No. Of - 6 11 32 21
employee
% 0 9 16 30 46
9% 2-SOMEWHAT
DISAGREE
30%
16%
3-NEITHER AGREE
NOR DISAGREE
4-SOMEWHAT
AGREE
5-STRONGLY AGREE
46%
INTERPRETATION
46%of the employees strongly agree that feedback is taken from them about the
effectiveness of training program after the program is over. 30% of the employees
also agree that to advance the training program taken on the contrary 9% of the
employees do not think so.
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4.5 Satisfaction with Benefits to the employees.
No. Of - 4 3 28 35
employee
s
% 0 6 4 40 50
2-
SOMEWH
50% AT
40% DISAGREE
INTERPRETATION
90% of the employees are of the view that training sessions conducted actually help
them in enhancing the skills and improving the efficiency at the current job position.
Only 6%of the employees believe that training does no good to them, and does not
help them at the positions they hold.
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4.6 Participation in Training Programs Conducted By External Agencies.
Cases Yes No
No. Of employees 29 41
% 41 59
Participation in Training
41%
YES
59%
NO
INTERPRETATION
41% of the employees participate in the training programs conducted by the external
agencies for which assistance is provided by the company, whereas 59% of the
employees do not participate in such programs
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4.7 Employees participate in the technical skill
development training.
Particular Percentage
All 8%
None 38%
Table
(4.7)
1
1
3 2
3
INTERPRETATION
Indicates those workers who have under gone technical skills development training it
is nearly 8%,those workers who have not under gone such training and such worker
comprise 38% and those workers who are not aware of such training such comprise
54%.
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4.8 Satisfaction with Training Part of Organizations Policies.
NO.OF - 3 - 29 38
EMPLOYEES
% 0 4 0 41 54
Organization Policies
0 4% 0%
Strongly disagree
Somewhat disagree
Neither agree nor disagree
41%
54% Somewhat agree
Strongly agree
INTERPRETATION
After the analysis of the questionnaire it was observed that Nestle considers training
as an integral part of its policies and leaves no stone unturned to train its employees.
54% employees strongly and 41% employees somewhat agree that training is a part
of organization’s policies.
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4.9 Department in the organization has more need of training.
TOTAL TRAINING
SRNO. NAME
IDENTIFIED
1 OPERATORS 40
2 STAFF 37
3 EXECIUTIVE 27
4 MANAGERS 35
Managers
25% Operators
29%
Operators
Staff
Executive
Managers
Executive
19%
Staff
27%
INTERPRETATION
From the above diagram it can be see that out of the total training identified
maximum training is required for the operators of reliance industries ltd. Only 19% of
the total training is required for the executives and managers of RIL.
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4.10 Training improves the communication skills and overall personality of the
employees.
Options Percentage
Agree 65%
Disagree 35%
Table (4.10) training improves the communication skills and overall personality
of the employees
Agree
Disagree
Fig (4.10) training improves the communication skills and overall personality of
the employees
INTERPRETATION
From the above diagram of staff we can clearly see that training improves the
communication skills and overall personality of the employees. So the RIL should try
to include more classes in its training sessions for the employee development.
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CHAPTER-5
5.1 FINDINGS
It see that communication skill is the major problem among them. So the
reliance fresh should try to include more classes in its training sessions and
programmed for the improvement of communication skill of its staff
members.
Out of the total training identified maximum training is required for the
operators of reliance industries ltd. Only 19% of the total training is required
for the executives and managers of reliance
Those workers who have not under gone such training and such worker
comprise 16 %.
Those workers who are not aware of such training and those workers comprise
6%.
11% of the workers are unaware about the main training in the company,
though most of them gave i.e. nearly 89% of the workers were able to answer
the question properly, they have to be given the knowledge of their training,
so that they can understand that having different types of training means they
have to be efficient to fulfill the requirements of different work.
Almost 63% of workers are aware of the consequences of arriving of the new
technology in the production work only but they are unaware of the long term
effect.
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37% of the workers are unaware so HR, department should conduct a lot of
awareness program concentrating upon improving the basic knowledge of
workers regarding the strategies working of the new technology and effects of
the performance of worker.
From the above analysis we know that reliance use maximum (d) option i.e.
lecture for the training purpose. After private firms reliance use conference
then job rotation and last case study.
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5.2 SUGGESTIONS
Study material must be given quite in advance before training programme, so that
participant makes himself aware with the study material and contents for training
programme .
Motive for training should not be as: “If one participant among forty or fifty,
acquires knowledge then training is useful” Instead, it should be as: “All the
participants have to acquire knowledge as much as it is possible in the best
trainings”
External faculty should be called again only after assessing the results of post
training evaluation
Mangers and above may be awarded of the future benefits of training. They should
make to be realized that training is not wastage of manpower. It’s an important
issue because investment in human resources is the best investment if company
really wants to upraise itself.
Case work method can be adopted in counseling, if Group work method becomes
unsuccessful.
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The feedback forms, which are filled just after which are filled just after training,
should not contain the name of trainee. Then he will reveal the facts exactly,
related in the absence of faculty.
Training should be given only after making up the of trainee for it. It may be done
by motivating by the D.Os. Trainees should be prepared for training and then they
will learn more and better during training.
After training, marks may be awarded to the participants. One copy of mark sheet
may be given to the participant. During the time of promotion, or at the time of
joining any other organization these certificates will work as booster for his
desired goal. The participants must be told these things. Then they will participate
in training very actively. However it is also important that before touching the
service records for this purpose, all the recognized unions must be taken into
confidence, otherwise agitation will come out, as unions in RELANCE are very
active.
(I) Just after the training, to assess awareness of trainee for the given
training. It will also assess whether any change has occurred in the
person during the training programme.
(II) Feedback form should be filled after sometime (say after one month) of
the training. This from will evaluate the changes in participants actual
work behaviour and will monitor the performance of trainees on the job.
(III) After two or three months, there should be another feedback form for
the assessment of changes in the functioning of a part or all of the
organization. Training output and financial assessment (cost- benefit
evaluation) will be assessed by this form.
(IV) External faculty should be called again only after assessing the results of
post training evaluation
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(V) Suggestion should be invited from employees on training matters.
(VI) Mangers and above may be awarded of the future benefits of training.
They should make to be realized that training is not wastage of
manpower. It’s an important issue because investment in human
resources is the best investment if company really wants to upraise
itself.
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5.3 CONCLUSION
A successful training program presumes that sufficient care has been taken to discover
areas in which it is needed most and to create the necessary environment for its
conduct. The selected trainer should understand clearly his job and has professional
experience, has an aptitude and ability for reaching possesses a pleasing personality
and a capacity for leadership, is well versed in the principles and methods of training
and is able to appreciate the value of training in relation to an enterprise. Participants
tend to be more responsive to training program when they feel the need to learn, I e.
the trainee will be more eager to learn if training promises answers to problems or
needs he has. The individual who perceives training as the solution to problems will
be more willing to enter into a training program than the individual who is satisfied
with his present performance abilities.
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Creation of a desire for training is very much essential and it is possible by three
ways:
1. They will respond to programs involving changed behavior if they believe that the
resulting modification in the behavior is in their own interest, that they will
receive personal benefits as a result of their own behavior.
2. Trainees will change their behavior if they become aware of better ways of
performing and gain experience in the new pattern of behavior so that it become
their normal manner of operation.
3. A trainee should change his behavior in compliance with the force demand of his
superiors or others with more power than the trainee possesses.
Researches is American have revealed that people remember 10% of what they read,
20% of what they hear, 30 % of what they see, 50 5 of what they see and hear, 70% of
what they say, 90% of what they say as they perform the task. It means, people learn
best and more by doing than by hearing.
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