Report on

KSA Development and Training Needs Identification for EXIM

Submitted to:-

Reliance Industries, HR Department

Submitted By:Name: Regina Thomas Institute: YMT College of Management, Kharghar Mumbai University 05 July 2008

Executive Summary

Most invaluable possession of any company is its employees. Their Knowledge, Skills and Attributes are which make or break a company; hence managing these assets is equally important as is bringing them in. For its enhancement and improvement, Training Programs are a necessity. To manage this pool of Knowledge, Skill and Attributes, a formal representation is required. This formal representation is done by developing a Knowledge Skill Attribute (KSA) matrix which formally describes the Knowledge, Skills and Attributes for each Job Role. Once this is done, it opens door for development of many other processes to enhance performance and manage the knowledge pool. In this project a training identification process is determined from KSA which will help to select a customized Training Program for each person. The training requirements are designed to bring the concerned person upto a desired level in each Knowledge and Skill area.

Table of Contents
FLOWCHART: OBTAINING EPCG LICENSE.............................................................14

Motivation
The importance of HR cannot be undermined in any business in todays world. This field has a lot of potential like Recruitment, Performance Measurement and Development of Employees and I was attracted at the option of being a part of the project which will help in all the above mentioned initiatives. Development of KSA matrix will help in identifying new talent, selecting the initial training for new joiners. This project will not only set improved and better defined process for Training Need Identification but also help in identifying the Core Competencies of employees and better identification and rectification of problems. Secondly, since this project involved working on a process from conception to conclusion with scope for new ideas, it surely promised to be an avenue of great learning. The fact that this project was for EXIM Department of Reliance, gave me the opportunity to expand my knowledge base to many folds in various subjects and areas than just being restricted to Human Resource related subjects.

Company Background
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of USD 22 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Human Resource Development in Reliance RIL is a company with a global character. It behaves, thinks and performs in a manner that is in line with global best of breed practices. It encourages employees to think in synchronicity with the world and prove his/her abilities by availing global opportunities within the group itself. Customized training programs that enhance both personal as well as career growth of employees are carried out almost round the year. The programs have equipped its executives with the capability of executing world class projects in record time. RIL has an In-house training program for graduates to develop competency in Finance and Accounts. On successful completion of the program the participants are equipped to take up higher responsibilities in the Finance and Accounts function. RIL is also associated with the Indian Institute of Management (IIM) Bangalore and the Indian Institute of Technology (IIT) Mumbai. It has sponsored a number of engineers in a customized management course, MPRE (Management program for Reliance Engineers) at IIM Bangalore and several science graduates and diploma holders to complete a Reliance Certified Engineering course with IIT Mumbai. RIL conducts a Manufacturing Leadership Program for its senior executives in association with Hewitt Associates. Keeping in view the demands of global marketplace, RIL is introducing customized management program that trains managers in marketing and other communication skills. It is also planning to introduce an advanced management program in collaboration with an international management institute for its senior managers. 5

Objectives of Project
To determine the Knowledge, Skills and Attributes required and develop the Knowledge Skill Attribute Matrix for EXIM Department To develop a framework for Training Need Identification from the KSA matrix and suggest a Training Program

The scope of the project was to develop Knowledge Skill Attribute matrix to provide a distinction between the knowledge, skills and attributes required for different job Roles (Service Representative, Senior Service Representative, Team Leader and Service Delivery Manager) within each work area. I have worked upon developing a KSA matrix for the EXIM department. The training identification module was developed from the KSAs to determine training needs in each Knowledge Area mentioned in KSA for each person. A suitable training program could also be suggested based upon the knowledge area and the gap between actual and desired levels of knowledge/ skill. The training program is based upon the study of needs of EXIM work area, since it is derived from KSA EXIM and discussions with EXIM people. This module was developed to provide a base structure which could be modified and replicated. The scope was limited to developing a training program which provided one time training to ensure desired level of Knowledge and Skills was obtained for each employee after the training.

Introduction to EXIM
Administrative activities of the imports and exports taking place are carried out by the EXIM department. EXIM is divided into the following work areas:-

1. Duty Entitlement Pass Book Scheme (DEPB) 2. Export Promotion Capital Goods Scheme (EPCG) 3. Advanced Licensing 4. Jt. DGFT Co-ordination 5. Special Economic Zone (SEZ) 6. Textile Logistics & Exports

1. Duty Entitlement Pass Book Scheme (DEPB) The objective of DEPB is to neutralize the incidence of Customs duty on the import content of the export product. The neutralization shall be provided by way of grant of export duty against the export product. The DEPB scheme will continue o be operative until it is replaced by a new scheme which will be drawn up in consultation with exporters. Under the DEPB, an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency. The credit shall be available against such export products and at such rates as maybe specified by the Directorate General of Foreign Trade by way of public notice issued in this behalf, for import of capital goods, raw materials,intermediates,components,parts,packaging material etc. The DEPB shall be valid for a period of 24 months from the date of issue. 2. Export Promotion Capital Goods Scheme (EPCG) The scheme was introduced by Sh. P. Chidambaram Ministry of commerce in 1990 to allow import of capital goods at low Custom duty. This scheme has helped in boosting exports in the initial years of introduction when the customs duty on capital goods was very high. This scheme has primarily helped exporters to become more competitive as it reduces the initial cost on capital goods. EPCG scheme allows import of capital goods for pre production, production and post production (including CKD / SKD thereof as well as computer software systems) at 3% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled in 8 years reckoned from Authorization issue date

In case of agro unit, units in cottage or tiny sector, SSI unit to be completed EO period in 6 years. It is subject to actual user condition till export obligation is completed The scheme allows following items which are freely importable as per ITC (HS) classification: a) Capital goods (Plant, machinery, equipment, accessories) b) Second hand capital goods (without any restriction on age) c) Catalyst for initial charge d) Refractories for initial lining e) Refrigeration equipments f) Power generating sets g) Machine Tools h) Equipment & instrument for testing, research and development, quality & pollution control. i) Spares for existing plant & machinery ( imported earlier) j) Catalyst for replacement 3. Advanced Licensing An advance license is issued to allow duty-free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage).In additionfuel, oil, energy, catalysts etc. which are consumed in the course of their use to obtain the export product, may also be allowed under the scheme. Duty free import of mandatory spares upto 10% of the CIF value of the license which are required to be exported/supplied with the resultant product may also be allowed under Advance License. Advance licenses are issued on the basis of the inputs and export items given under SION.

Advance licenses can be issued for: (a) Physical Exports: Advance license maybe issued for physical exports including exports to SEZ to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) for import of inputs required for the export product. (b)Intermediate Supplies: Advance License maybe issued for intermediate supply to a manufacturer-exporter for the import of inputs required in the manufacture of goods to be supplied to the ultimate exporter/deemed exporter holding another Advance License. (c) Deemed Exports: Advance license can be issued for deemed export to the main contractor for import of inputs required in the manufacture of goods to be supplied. Advance license is issued for duty free import of inputs, subject to actual user condition. Such licenses (other than advance license for deemed exports) are exempted from payment of basic Customs duty, education cess, anti dumping duty and safeguard duty, if any. Advance license duty for deemed export shall be exempted from basic customs duty, additional customs duty and education cess only. However in case of supplies to EOU/EHTP/STP/BTP under such licenses, anti-dumping duty and safeguard duty shall also be exempted. 4. Jt.DGFT co-ordination It involves co-ordination with the Jt. DGFT authorities, i.e. Directorate General of Foreign Trade, which is headed by Director General of Foreign Trade. The office of the DGFT is responsible for formulating and execution of Foreign Trade Policy, including Licensing. 5. Special Economic Zones (SEZs) Special Economic zones (SEZ) are growth engines that can boost manufacturing, augment exports and generate employment. The private sector has been actively associated with the development of SEZs.the SEZs require special fiscal and regulatory regime in order to impart a hassle free operational regime encompassing the state of the art infrastructure and support services.

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Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. Goods and services going into the SEZ area from DTA shall be treated as exports and goods coming from the SEZ area into the DTA shall be treated as if these are being imported.

6. Textile Logistics & Exports All Naroda textile export work through Mumbai/JNPT ports is involved. Also handles post exports documentation and submissions to banks, getting all textile export documents for availing DEPB benefit and co-ordination with Naroda plant with regards to all exports logistics.

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FLOW CHART SHOWING OBTAINING & CLOSURE OF ADVANCE LICENCE FOR DEEMED EXPORTS (DE) / INTERMEDIATE EXPORTS (IE)
BG to obtain Pre-DE/IE documents including invalidation letter & license copy from Customer & forward to EXIM

Execution of Contract by Business Group (BG) with Customer

EXIM to file application for Adv license with DGFT electronically

Obtain Advance license

(7-10)

Submission of preDE/IE documents with DGFT

(2-3)

File No. allotted by DGFT

Completion of DE/IE supplies

BG to update license details in SAP in respect of each supply invoice & monitor completion of supplies under each license

Imports for actual qty. entitled

BG to submit postDE/IE documents & BRC for closure to EXIM

BG to obtain BRC evidencing receipt of payments

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EXIM to submit DE/IE proof & BRC for closure of file to 15 DGFT Obtain EODC / Redemption letter from DGFT

(2-3)
Imports to provide utilization details & license availability on monthly basis to EXIM & Procurement Group

EXIM to forward the EODC / Redemption letter to Import Group for Bond waiver / cancellation

EXIM to update Adv license file closure status in SAP

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Note: Figures stated above are no. of days generally taken to achieve next activity.

STEPS IN DEPB PROCESS

Verify the Shipping Bill (Export Promotion Copy and DEPB Copy) in regard to correct Export Product description, DEPB SR. No and DEPB Rate, CIF/FOB Value, Export Qty, Finally assessed or Provisionally assessed, whether the full name of the Customs Officials with designation and round seal of Customs on both side of the S/Bill, handwritten words, figures duly signed and sealed.

Scanning of Documents Entry of documents in Exports master file. Detailed checking of Post- Export Documents For correctness. Checking Export promotion copy of S/B, BRC,freight certificate, insurance certificate in respect of various details entered such as value,qty, name of custom officials, seal of customs etc.Further checking of linking of S/B on DGFT server by customs in case of EDI shipment. Posting in SAP Preparation of Document Set. (3 in case of EDI & 4 in case of non EDI) Creation of PRV for remitting Application Fee through EFT. Electronic submission of DEPB Application to DGFT site. Physical submission of Application to Licensing Authority along with S/Bill & BRC for nonEDI S/Bs & only BRC for EDI S/Bs. Send the DEPB License for Customs verification through CHA for non EDI Port. (Not applicable for EDI) Verify DEPB receipt on ICEGATE Benefit generation of verified DEPB in SAP.

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Send verified DEPB to Import Group for duty free imports. Final BRC submission in case of DEPBs obtained on Non Transferable basis.
Circulate FLOWCHART: OBTAINING EPCG LICENSE SOP

Procure ment /

Receive request

Plant

Verify documents

If not OK, ask for required docs

OK
Prepare Working sheet

Add CTN

Send for confirmations Chartered Engineers certification

IE C, R Im C M p o C, rt lis t

Item description, UoM, Justification, Central Excise Certificate, Purchase Order, catalogue, Flowchart, Port of Registration

Make online application

Make SAP BENEFIT No.

Make EFT
Prepare Hard copy ApplicationEFT No.

Prepare PRV

Verify EFT EFT confirmation

CA certifi cation for MEO

with Annexures

Accounts

Digital Submission Get E-File No. Keep Application for signature

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Submit to JDGFT

Maintain ZLICLST & update Benefit in SAP

Handover / Courier Circulate EPCG License to Procurement, Plant, Excise, Import, Stores
IMPORT CLEARANC E TEAM

Amendmen ts & Invalidation s Update utilization (SAP/Reports from imports dept.)

Introduction to KSA
Knowledge is awareness and understanding of facts, truths or information. Banking Knowledge, Financial Knowledge etc. Skill is ability, usually learned and acquired to perform actions which achieve a desired outcome. Analytical ability, negotiating ability etc. Attributes are characteristics of person. Enthusiasm, confidence, dedication, patience etc.

KSA matrix is hence a description of all the knowledge, skills and attributes required by a person for a specific job in the area. It intends to differentiate the scope of knowledge required by people at different work levels. E.g. People at execution level need to have a complete understanding of the processes involved whereas the people at strategic levels should know more knowledge which will help then to strategize and plan. This is explained further when the process of KSA identification is explained.

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The KSA matrix can be the starting point to select right people for right job. It can also be used to identify the current training needs of the employees, training needs of new joiners. It can also be used to uncover competencies for better performance measurement systems.

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Methodology
For determination of KSA matrix substantial data was collected to help in identifying precisely the knowledge areas and its extent for different job roles in EXIM. Hence the initial steps followed were: Understanding of the EXIM Department and various work areas within the department. A complete understanding of division of work into various Job Roles and Job Titles. Interviewing people and getting a basic understanding of their job1. Applying the concept of job roles to EXIM department. Understanding EXIM structure to classify people according to the Job Roles.

After following these basic steps, the actual process of KSA identification was followed.

Steps to identify KSAs

Understanding of job

Identification of Knowledge areas related to Work

Preparation of Exhaustive list of Knowledge Areas in detail

Verification of KSA by HOD s and individuals

Identification of knowledge for SR, SSR and TL

Grouping & classification of Knowledge areas

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Step 1: Understanding the job for understanding the job lot of data was gathered. Mostly primary data was collected through interviews and discussions. Secondary data was collected through net. Also, some primary data like Job Descriptions were already available. After the initial round of open ended interviews to get a basic understanding of the jobs, second round of interviews were conducted to get a better understanding of job and various processes involved. This was also supported by observing role holders at work and understanding the Job Descriptions provided. Hence after getting a fair idea about the work, similar profiles were searched on net and their job descriptions were studied. Step 2: Identification of Knowledge Areas related to their work this step required analysis of the Interviews, Job Descriptions, the process and work. This helped to identify the key knowledge areas. Then these knowledge areas were researched on net to identify other areas which were linked to it and required for the job. This way a broad outline of knowledge areas were formed. E.g. Corporate external environment, Corporate internal environment, Statutory compliance, Systems and procedures within RIL. Step 3: Preparation of exhaustive list of Knowledge Areas in detail in this step the broad knowledge areas which were identified in the beginning were drilled down into greater details to arrive at very specific knowledge. Each Job Description was broken down into a list of related knowledge areas. Hence an exhaustive list was prepared with the help of internet. Step 4: Grouping and classification of Knowledge Areas - in this step, the knowledge collected in step 3 is again clubbed up and grouped to ensure only essential knowledge areas are included and unnecessary areas are eliminated. Hence a comprehensive list of knowledge related to EXIM department is obtained. This list was shown to the respective people and head of department and their consent was taken. Step 5: Identification of Knowledge required according to Job Roles after identifying all knowledge areas, they are analyzed for various job roles. Like already

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mentioned, it is grouped according to the functions carried out by each person in each role. E.g. Senior Representatives will be more concerned with how the process is carried out in detail. He should know all the procedures for applying for licenses, benefits in great detail, whereas the Team Leader need not know the details of the formats, but he should have a fair idea about the importance of each process and transaction. Hence in this way a KSA matrix was prepared and for each knowledge area in Imports the type and depth of knowledge for each role was specified. For each knowledge/skill area a code was given. The convention followed- Four letter code with starting letter indicating Knowledge Skill and Attribute (K, S, A) and the other 3 were digits indicating a number. E.g. K001, S003, A006 etc. Step 6: Verification of KSA by Heads of Department and Individuals after completion of the matrix, it was shown to individuals and the Heads of Department for modifications. All the changes were discussed and then incorporated in the KSA to develop the final KSA. Final KSA was hence prepared was verified by each person in Imports.

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Training Need Identification

Second part of the project was to develop a module for Training Need Identification. The training needs were derived from the KSA itself. The process could be described as:

KSA

Build a rating scale Assessing current levels of Knowledge and skills Identify the gap between actual and desired

Determine Training Program

From the KSA matrix all the Knowledge and Skill areas were obtained where training could be provided. There are 2 main methods of determining the training needs: Top Down: Interviews and discussions with people in Leader Family to determine Training Requirements. In this method training requirements for employees are dependent on their bosses assessment. Hence, there can be problems of biasness and little inaccuracy. Bottom Up: Interviews and discussions with Manager and Executive family to determine their Training Needs. In this method the training needs for the employees are determined by the employees themselves. Hence they might have a better idea of the training requirements. But in this method also there might be inaccuracies when people will try to hide their own training requirement. 20

I have mainly followed the Top down Approach but have included the bottom up approach by including a self assessment of importance to job column in the template for training need identification module. The values were obtained from the Service Representatives by getting questionnaires filled. To assess the training needs, a rating scale was developed. This was to help in assessing the present knowledge/skills of a person as compared to the desired. The scale developed was:
RATING SCALE Rating 0.0 to 5.0 5.1 to 6.0 6.1 to 7.0 7.1 to 8.0 8.1 to 10.0 Term Level 1 Level 2 Level 3 Level 4 Level 5 Explanation Needs Significant improvement Needs improvement Needs slight improvement Adequate Performance Superior Performance

This scale would be used by the Heads of Department to rate their Subordinates. The next step was to build an importance scale to attach it to every knowledge/ skill area to determine the importance of each area for individual persons job. This was important as each person works on a specialized area and hence it was not necessary for that person to be proficient in other areas he was not working on. Hence this importance scale was developed so that the according to the importance and current level of knowledge and skills a correct training program is selected.

The importance rating scale developed was:

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IMPORTANCE RATING

Rate 1.0 2.0 3.0 4.0 5.0

Explanation Not applicable Important but not essential Important and essential Very important and essential for the job Critical for the job

Hence now the current level of a person could be assessed by the HOD with the help of these two scales. The score obtained gets multiplied by its importance which becomes the Final Score whereas the Importance multiplied by maximum score becomes the Total Maximum Score. The difference of these two values is the gap between desired and actual. This gap is further divided by a constant factor of 10 to obtain a gap between 0 and 5. According to the gap obtained automatic highlighting shows the type of training required for that gap. There are 3 different types of training courses available. Namely: Refresher Training: Basic course to refresh important concepts Intermediate Training: More complex course to cover a broader view of concepts Extensive Training: An intense training program of longer duration to cover concepts in greater details

Hence the gap is analyzed according to the following scale:

GAP ANALYSIS

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Gap 2.40 to 5.00 1.50 to 2.39 1.09 to 1.49 0.00 to 1.00

Explanation Extensive Training Intermediate Training Refresher course Does not require any training

Next, according to gap obtained and the training type indicated, for every knowledge and skill area, a training program (template) was identified. This was identified by discussions, material from Internet and feedback from the Heads of Department. The training program has been decided on the basis of increasing complexity of exercises, knowledge area and cost to the company.

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Self Study

Online Training

Seminars

Internal Faculty Training (In House Training)

External Faculty Training

Workshops

Increasing level of complexity

Terms Explanation Self study with guidance from boss along with a test taken by the boss at the Self Study Online Training Seminar In-house External Faculty Workshops end Online modules on concerned topic with tests for assessment of knowledge gained at the end A topic is discussed by a person to a large gathering. Usually one continuous session of 4-5 hrs A person within the company takes sessions to explain concepts Classes taken by Professional External Faculty Practical demonstration or interactive session stretched over 2-3 days

Steps Ahead
Benchmarking against companies in same business as Reliance 24

While developing the KSA matrix, KSAs of other companies can be studied to get a better template and comparison. For the training template development, a benchmarking against other companies can be done to determine the desired level of Knowledge and Skills for a specific job. Include a Training Program for New Joiners The training module developed does not have a provision for a separate training for New Joinee/ Fresher in the company. This module will assess the person with a larger gap and suggest the person an Extensive course. Here the Extensive course has been developed with the hypothesis that the person has been working in the company since some time. Include On going/ upgrading Training Programs One more drawback of the project is that it does not suggest training for updating the knowledge and skills. Hence this factor will have to be incorporated. Otherwise this training module will have to be run frequently. Take into consideration the inconsistencies between the values obtained from HOD s and self evaluation The values obtained by HODs and Role Holder should ideally match but practically they can vary greatly. In the module prepared, if the values differ greatly, then the values filled by HODs are taken into consideration. Hence some method should be devised to find out the actual values on which both HODs and role holder agree.

Development of Annual Training Program After identifying the Training needs and training program type, an Annual Training Program has to be developed which will have a list of institutes and schedules for employees to register and attend the training. 25

 Automation of the process to enhance scalability and ease of implementation The whole process of identification of training needs and the annual training program can be automated and made a part of the KMS system to ease the implementation of the process.

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Recommendations

Online Teaching House in company: - An online portal like KMS (eLearning) can be developed which will have learning modules for different departments. It should contain reading material and tests related to various Knowledge Areas. It can be made a compulsory assignment for people and some points can be allocated to each knowledge area. Passing a test in that area will mean earning those points. Hence some minimum points could be fixed for people, which will ensure that they complete at least some of the training modules. In House Teaching School: - Round the year training can be provided to new employees as well as present employees in a training centre of Reliance only. The faculty can consist of recently Retired Reliance employees and a few present employees to train others. This faculty can constantly be updated by continuous recruiting of Retired Employees. Job Rotation: - Job rotation will help in learning without actual training. By introducing Job Rotation people can be trained to handle variety of jobs during the job itself, hence it will be easier to assign extra responsibilities to that person in the particular field if required.

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Annexure 1
Definitions of Job Roles

Service Representatives Employees directly involved in delivering services to internal customers Senior Service Representatives First line supervisors to Service Representatives Team Leader Responsibility of smooth service delivery of their work area Service Delivery Manager Overall Responsibility of smooth service delivery

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Annexure 2 INTERVIEW SCHEDULES

Name Work Area

Kailash Ekkaldevi Supiya Prabhudesai Jayendra Bhagat Hitesh Kodolkar Prashant Gawde Sandeep Singhvi S.Ramachandran Shashikant Yadav Sapna Trasi Molly Thomas Kaushal Mashruwala Harikrishna Kansuwal Sushil Mungad Anil Mahajan George Eapen Prashant Mallya Mithoo Srivastava Vijay Khakhra Ashok Khandelwal Rajesh Birare Sameer Tambe Tanaji Pawar Sanika D. Rajaram Desai Sandip Mhatre Rajesh Gaikwad

DEPB DEPB DEPB FMS FMS SEZ EPCG EPCG EPCG EPCG EPCG Advance Licensing Advance Licensing Advance Licensing Advance Licensing Advance Licensing FMS/SEZ/EOU Jt.DGFT co-ordination Jt.DGFT co-ordination Advance Licensing Advance Licensing Advance Licensing Advance Licensing Textiles Exports & Logistics Textiles Exports & Logistics Textiles Exports & Logistics

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