PREFACE

Project undertaken by student helps them to gain good practical knowledge

in the concern field.

This project entitled “ CONTRIBUTION OF HUMAN RESOURCE DEVELOPMENT

TOWARDS ORGANIZATIONAL SUCCESS in ITC LIMITED Lucknow”

Helped me to have a better understanding of “HRM”, the staff structure,

distribution process and responsibilities of the employees of ITC.

I wish that the experience and learning gained from this project would help

me to enhance my professional career in future.

AKNOWLEDGEMENT

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“What is ‘Today’ becomes ‘Yesterday’ and what is ‘Tomorrow’ becomes
‘Today’. Give your best today, be it in your tiniest of duty
Performance, in practicing values and ethics, in fulfilling all small or
Big commitments. The best will come to you tomorrow”.

This is to acknowledgement my sincere thanks and gratitude to all those

concerned, who have contributed of in contribution in this project I owe my
deepest gratitude.

To begin with, I wish to acknowledge and express my gratitude to:

Mrs. ASTHA (HR HEAD, ITC) who gave me the opportunity to work in this
organization.

A mammoth project of this nature calls for intellectual nourishment,

professional help, and encouragement from many quarters. Doing summer training
from the esteemed organization ITC, Lucknow has given me a chance to apply all
theoretical inputs to real-life situations. Overall it was an entirely a learning
experience for me.

I am grateful to my project incharge Ms Koyal (HR Manager ITC) for his

continuous assistance and inspiration. The knowledge, advice, support, suggestion,
helpful, tips given to me by him helped me to successfully complete this project. I
am also thankful to the staff members of ITC for giving me useful information
whenever I approached them.

At, last I am deeply grateful to my parents and friends who have given every
help and moral support and their constant advice, which enabled me to pursue my
academician.

Jyoti Jaiswal

SUMMER TRAINEE, KNMIET MODINAGAR

CONTENT

 Preface
 Acknowledgement
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  Content
 Objective
 Executive Summary
 Introduction to Subject
 Chairman Speaks
 ITC History & Evaluation
 ITC Profile
 Introduction to Managing Strategic change in HRM
 Recruitment & Selection
 ITC Organization Structure
 Distribution of Staff at ITC HQ
 Management of People in ITC Limited
 Research Methodology
 Observation
 Recommendation
 Bibliography
 Anexure

OBJECTIVE

The aim of our study is to comprehend and analyze “The Contribution of Human
Resource Development towards organizational success”, which we done on OBC.
Our objective is to find out whether the three sub systems of HRD, namely,

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Recruitment & Selection , Compensation ,& Carrier Dev\\elopment contributes
towards the success of these organizations.

 To understand the Organizational Structure.

 To study the distribution pattern employee.
 To study the merchandising HRD system in ITC.
 To study the Recruitment & Selection Process.

Our objective is to make a comparative study on the above mentioned parameters

and to come up with suitable recommendations.

EXECUTIVE SUMMERY

This is a project which gives the comprehensive idea how currently the
Recruitment & Selection, Compensation ,& Carrier Development in organizations
like OBC are contributing towards the organizational success.

To make this project the methodology which we have adopted is as follows.

First of all we have designed a questionnaire separately for HRD & Non - HRD
personnel. Our emphasis was mainly on three broad areas, Recruitment &
Selection, Compensation, & Carrier Development.
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After designing this questionnaire we found that it is not enough to completely
know the details in their organization. For that we need a comprehensive formal &
informal interview with the organization personnel specially the HRD manager.
The interviews which we had conducted are very effective as we managed to
gather all the information required for our analysis from HR as well as Non HR
departments.

All the details which were collected by us, had been duly analyzed by us. Through
which we have arrived at a conclusion as mentioned below:

In our recommendation chapter, we have suggested some valuable

recommendations which can enhance more effectively these three sub systems in
this organizations.

We hope this project will be beneficial for this organization if they consider the
areas which we pointed out in our research.

INTRODUCTION TO THE TOPIC/SUBJECT

Organizational Success
The extent to which the employee demonstrates success in
setting priorities and accomplishing work that directly impacts the ability of the
organization (which may be at any level: branch, division, field facility,
directorate, service etc.) to meet its performance objectives and the delivery of
high quality products/services.

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“HRD is a set of inter-related activities, by which human potentialities are
assessed, selectively upgraded and appropriately deployed for achievement of
envisioned goals which foster human dignity.”

HISTORY AND EVOLUTION

ITC was incorporated on August 24, 1910 under the name of 'Imperial
Tobacco Company of India Limited'. Its beginnings were humble. A leased office
on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The
Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot
of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for
the sum of Rs 310,000. This decision of the Company was historic in more ways
than one. It was to mark the beginning of a long and eventful journey into India's
future. The Company's headquarter building, 'Virginia House', which came up on
that plot of land two years later, would go on to become one of Kolkata's most
venerated landmarks. The Company's ownership progressively indianised, and the
name of the Company was changed to I.T.C. Limited in 1974. In recognition of the
Company's multi-business portfolio encompassing a wide range of businesses -
Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
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Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting &
Stationery - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened 'ITC Limited'.

Though the first six decades of the Company's existence were primarily
devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco
businesses, the Seventies witnessed the beginnings of a corporate transformation
that would usher in momentous changes in the life of the Company.

ITC's Packaging & Printing Business Division was set up in 1925 as a

strategic backward integration for ITC's Cigarettes business. It is today India's
most sophisticated packaging house.

In 1975 the Company launched its Hotels business with the acquisition of
a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The
objective of ITC's entry into the hotels business was rooted in the concept of
creating value for the nation. ITC chose the hotels business for its potential to earn
high levels of foreign exchange, create tourism infrastructure and generate large
scale direct and indirect employment. Since then ITC's Hotels business has grown
to occupy a position of leadership, it over 70 owned and managed properties
spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC

Bhadrachalam Paperboards Limited, which today has become the market leader in
India. Bhadrachalam Paperboards amalgamated with the Company effective March
13, 2002 and became a Division of the Company, Bhadrachalam Paperboards
Division. In November 2002, this division merged with the Company's Tribeni
Tissues Division to form the Paperboards & Specialty Papers Division. ITC's
paperboards' technology, productivity, quality and manufacturing processes are
comparable to the best in the world. It has also made an immense contribution to
the development of Sarapaka, an economically backward area in the state of
Andhra Pradesh. It is directly involved in education, environmental protection and
community development. In 2004, ITC acquired the paperboard manufacturing
facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil
Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead
time and a wider product range.
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 In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper
manufacturing company and a major supplier of tissue paper to the cigarette
industry. The merged entity was named the Tribeni Tissues Division (TTD). To
harness strategic and operational synergies, TTD was merged with the
Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the

International Business Division (IBD) for export of agri-commodities. The
Division is today one of India's largest exporters. ITC's unique and now widely
acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya
Pradesh. Now it extends to 9 states covering over 3.5 million farmers. ITC's first
rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore.
The year 2006 witnessed the ramping up of the Company's rural retailing network
with 17 'Choupal Saagars' being operational in three states of Madhya Pradesh,
Maharashtra and Uttar Pradesh.

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 COMPANY’S PROFILE
ITC is one of India’s foremost private sector companies with a market
capitalization of around US $ 18 billion and a turnover of US $4.75 billion. ITC
has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery,
Greeting Cards and other FMCG products. While ITC is an outstanding market
leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging
and Agri-Exports, it is rapidly gaining market share even in its nascent businesses
of Branded Apparel, Greeting Cards and Packaged Foods & Confectionery.

ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the
World's Most Reputable Companies by Forbes magazine, among India's Most
Respected Companies by Business World and among India's Most Valuable
Companies by Business Today. ITC also ranks among India's top 10 `Most
Valuable (Company) Brands', in a study conducted by Brand Finance and
published by the Economic Times.

As one of India's most valuable and respected corporations, ITC is widely

perceived to be dedicatedly nation-oriented. Chairman Y. C. Deveshwar calls this
source of inspiration "a commitment beyond the market". In his own words:
"ITC believes that its aspiration to create enduring value for the nation
provides the motive force to sustain growing shareholder value. ITC practices
this philosophy by not only driving each of its businesses towards
international competitiveness but by also consciously contributing to
enhancing the competitiveness of the larger value chain of which it is a part."

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 ITC's Agri-Business is one of India's largest exporters of agricultural
products. ITC is one of the country's biggest foreign exchange earners (US $ 2.8
billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian
agriculture significantly enhance its competitiveness by empowering Indian
farmers through the power of the Internet.

This transformational strategy, which has already become the subject matter
of a case study at Harvard Business School, is expected to progressively create for
ITC a huge rural distribution infrastructure, significantly enhancing the Company's
marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC InfoTech

India Limited, is aggressively pursuing emerging opportunities in providing end-
to-end IT solutions, including e-enabled services and business process outsourcing.

ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment management
systems. ITC was the first company in India to voluntarily seek a corporate
governance rating.

ITC employs over 21,000 people at more than 60 locations across India.
The Company continuously endeavors to enhance its wealth generating
capabilities in a globalizing environment to consistently reward more than
3,72,000 shareholders, fulfill the aspirations of its stakeholders and meet
societal expectations. This over-arching vision of the company is expressively
captured in its corporate positioning statement: "Enduring Value. For the
nation. For the Shareholder."

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 ITC BUSINESS
The main businesses of ITC are -

 FMCG
 Cigarettes
 Life style retailing
 Greeting cards
 Foods
 Safety matches
 Agarbatti
 Hotels
 ITC Sonar, Kolkata
 ITC Maurya, Delhi
 ITC Kakatiya, Hyderabad
 ITC Maratha, Mumbai
 ITC Grand, Central
 ITC Windsor, Bangalore
 ITC Park Sheraton, Chennai
 ITC Mughal, Agra
 Sheraton New, Delhi
 Sheraton Chola, Chennai
 Sheraton Rajputana, Jaipur
 WelcomHeritage, New Delhi

 Paper board and packaging

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  Paper board and specialty papers
 Packaging
 Agri–businesses
 Agri - exports
 Leaf tobacco
 E - Choupal
As part of its strategic initiative to create multiple drivers of growth in the
FMCG sector ITC entered in the branded packaged Foods business in August 2001
with the launch of the Kitchens of India brand of premium ready-to-eat gourmet
cuisines. The Company broadened this foray with an array of brand launches in the
Confectionery, Staples and Snack Foods segments.

While ITC is an outstanding market leader in its traditional businesses of

Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining
market share even in its nascent businesses of Branded Apparel, Greeting Cards
and Packaged Foods.

The packaged foods business provides ITC an excellent opportunity to

strategically leverage its time-tested and competitive strengths in brand
management, cuisine development in its hotels business.

The Foods business is represented in four categories in the market. These

are:

 Ready-To-Eat Foods

 Staples

 Confectionery

 Snack Foods

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Ready-To-Eat Foods

ITC today offers a range of Ready-To-Eat products under the ‘Kitchens of

India’ brand. ‘Kitchens of India’ brings exquisite gourmet Indian cuisine to the
Indian and global consumer, epitomizing the culinary expertise of the Master
Chefs from ITC – WELCOME GROUPS of hotels.

Staples

ITC entered the branded Atta (wheat flour) market with the launch of
‘Aashirvaad Atta' in Jaipur and Chandigarh in May 2002. The product has now
been launched on an all-India level.

ITC constantly aims to delight the consumer with the excellent packaging
of its food products. The ‘Aashirvaad’ package is pet-poly. Its design depicts the
farming activity in India’s rural heartland through a Madhubhani painting.

‘Aashirvaad Select’ (2 kg pack) recently won the World Star Award for
Excellence in Packaging, in the Consumer Pack Category. This is one of the most
prestigious international awards for Packaging. ITC is a pioneer in creating carton
packaging for its premium ‘Atta’. The Company is also a trend-setter in offering
the facility of vacuum sealing in the 5kg premium ‘Atta’ pack. Both these
innovations ensure and enhance the freshness of the product.

ITC, following the success of Aashirvaad Atta, has launched Aashirvaad

Salt to offer consumers yet another quality product. The product focuses on
essential qualities such as free flow and iodization, apart from purity.

Confectionery
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 ITC has launched two products in the confectionery segment – ‘Mint-O’
(compressed mint) and 'Candy man' (hard-boiled sugar candy).

‘Mint-O’ is the first mint in India, which is available in three flavors –

orange, lime and mint. The product is available in two sizes – rolls of 20s and 6s.
‘Mint-O’ offers the discerning consumer a value-added mint that captures the spirit
of youth. ‘Mint-O’ is now available in all major markets.

‘Candy man’ is currently available in two innovative flavors – ‘Wild

Banana’ and ‘Mango Delite’. The product seeks to provide the thrill of adventure
and excitement.

Safety matches

As part of its strategic initiative to create multiple drivers of growth in the

FMCG sector, ITC has commenced marketing safety matches sourced from the
small-scale sector. These matches are available in unique designs and with
innovative value added features. ITC's brands like Wimco, Mangaldeep, Vaxlit,
Homelight and Aim have already become popular.

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 Snack Foods

ITC entered the Snack Foods market with the launch of an innovative
product under the brand name ‘I’. This is a unique snack which provides an
interesting ‘Taste and Flavour’ experience.

Agarbatti

ITC has commenced marketing agarbattis (incense sticks) sourced

from the small-scale sector. This business leverages the core strengths of ITC
in marketing and distribution ITC has launched a slew of brands like Spriha,
Nivedan and Ashageet. These brands are available across a range of
fragrances like Rose, Jasmine, Sandalwood, Sambrani and Nagchampa.

ITC PRODUCTS…….

Cigarette Foods Life style Stationary Safety matches Agarbattis

Insignia Aashirwaad Wills lifestyle Paper Kraft Ikno Mangaldeep

India Kings Ready meals Wills sports Classmate Aim Spriha

B&H Cooking Paste Wills club Expressions Homelites

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555 Atta Wills classic Mangaldeep

Classic Salt John player

Gold flake Sun feast Biscuit Miss Player

Navy cut Glucose

Silkut Cream biscuit

Capstan Dark fantasy

Star Snacky

Golden bakery

Marie

Pasta treat

Kitchens of
India

Ready to eat

Curry paste

Conserve

Confectionery

Minto fresh

Candyman

Minto-roll

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 Bingo snacks

Personal Care
Essenza di wills Soap
Fiama di Wills Soap
Shampoo
Shower Gel
Perfume
Vivel di Wills Soap
Vivel Soap
Shampoo
Superia Soap
Shampoo

On Oct 15, 2007 ITC had launched new range of Personal Care products
Fiama Di Wills Shower Gels and Superia soaps and shampoos. Expanding its
range of personal care products, and following the successful launch of Fiama Di
Wills Shampoos, ITC had presented yet another world class range of products for
the Indian consumer through its new range of Fiama Di Wills Shower Gels.

ITC had also launched its fourth shampoo variant, Silky Strong which is
enriched with oils of Macadamia Nut and Babassu. This is in addition to the Fiama
Di Wills range launched earlier in the form of Everyday Mild, Aqua Balance, and
Volume Boost

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 .

Continuing with its tradition of offering a superior product and brand

experience to the modern Indian consumer, ITC had also launched the Superia
range of soaps and shampoos in select markets.

Superia offers a range of four soap variants and two shampoo variants with
a range benefit of Glowing skin and Shiny hair. Each of the variants have been
designed to deliver specific benefits to the various consumer needs. Superia
soaps & shampoos are an outcome of 3 years of extensive product development by
ITC scientists at the ITC Research and Development Centre.

On Dec 20, 2007 ITC had launched Fiama Di Wills Soaps. Following the
successful launch of Fiama Di Wills Shampoos and Shower Gels, ITC had
introduced Fiama Di Wills Soaps which offer the benefit of gentle and effective
care by combining elements of nature and science.

Fiama Di Wills Skin Sense Soft Green is a gentle caring soap, which helps
enhance retention of skin proteins to create a beautiful look. The soap packaging
has been developed by a leading European design firm and the fragrance has been
developed by an international house in France.

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 On Feb 14, 2008 ITC had expanded their Personal Care product range.
Expanding its portfolio of Personal Care products, ITC launched Vivel Di Wills &
Vivel, yet another world class range of soaps for the Indian consumer. This follows
the success of ITC’s previous launches- Essenza Di Wills, Fiama Di Wills and
Superia.

Backed by consumer insights, Vivel Di Wills offers a unique value

proposition of bringing together ingredients that provide the benefits of
Nourishment, Protection and Hydration through a single product. These unique
features provide the discerning consumer complete care, thereby enhancing beauty
and confidence.

All product formulations have been scientifically developed at the ITC

R&D Centre after 4 years of extensive research. The products are enriched with
Actipro N which has Nourishing, Protecting and Hydrating Ingredients. The
exquisite fragrances for the various products have been developed by leading
international fragrance houses. The unique carton pack has been developed by
ITC’s design team to provide a novel consumer experience.

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 INTRODUCTION TO MANAGING STRATEGIC CHANGE HR Deppt.

Strategic change is an extension of the planning process. The logic of the strategy
right and then persuading people of the logic, designing structures and control
systems appropriate to the strategy and using them as mechanisms of change,
putting them as mechanisms of change, putting the resources required and planning
timing and sequencing of change.

Ultimately the success of strategic change in the organization depends on how

people change their behavior. This means that belief and assumptions that they
hold and processes in their organizational lives is important. It also means that
there should be commitment in the people, and needs of organizational change
should not only be in terms of behavioral change but also in terms of everyday
aspects of change. Organisation should be learning organizations responding to the
changing environment.

Managing strategic change is context dependant. Managers should balance

different approaches to manage strategic change according to the situations they
face. There is a powerful influence of the paradigm and cultural web on the
strategy being followed in the organization.

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 TYPES OF STRATEGIC CHANGE
Strategy development in organizations is incremental with occasional more
transformational changes .It is beneficial for the organizations to change
incrementally because this way it can build on skills, routines, beliefs of those in
the organizations, so that the change is efficient and likely to win their
commitment. The organization should be proactive and keep in touch with the
environment and anticipate the needs to change which can be achieved through the
fine-tuning current ways of organizations react to the external competition.
Managers may not perceive major strategic changes, but rather they adapt the
existing paradigm and current ways of operating. Fine-tuning and reactive
adaptation may therefore results in incremental change. With the incremental
change might lay the dangers of strategic drift because change is based on, or
bounded by, the existing paradigm and routines of the organization even when the
pressures might suggest the need for more fundamental change. There when
transformational change is needed, either because incremental change has been
adequate or because the external pressure for change are extreme, e.g. if sales
decline or takeover threatens the continued existence of a firm.

Transformational change means change which cannot be handled within the

existing paradigm and organizational routines, it entails a change in taken for
granted assumptions and “the way of doing things around here”. Such
transformational change may also come about as a result of either reactive or
proactive processes. If strategic drift has occurred has led to deteriorating
performance or an uncompetitive position in its market, or if external stakeholders
e.g. major stakeholders are not happy with the current strategy, management may
be in a forced transformational position. Such a position may be reached if other
changes in the organization’s environment are so evidently significant or severe
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that the organization is forced into such a transformational change. The managers
anticipate the need for transformational change, perhaps through the sought of
analytic techniques. They may be then in position of planned transformational
change, which may provide them with more time in which to achieve if others in
the organization are resistant to it.

The 7-S Model

The 7 S model was developed in the late 1970’s by consultants at McKinsey and
company who were trying to help managers address several of the difficulties of
change. The model shows that change is complex due to organizational immune
systems, difficult paradoxes, and the many interconnected variables involved, and
to be effective a change effort must address many of these issues simultaneously.
This is often a daunting managerial challenge.

Structure

Strategy Systems

Shared values

Skills Style

Staff

Strategy: A set of actions aimed at gaining a sustainable advantage over

competition.

Structure: The organization chart and associated information that shows who
reports to whom and how tasks are both integrated and divided up.

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Systems: The processes and flows that show how an organization operates on a
daily basis(e.g. Information systems, capital budgeting systems, manufacturing
processes, quality control systems and performance measurement systems)

Style: What managers consider being important by the way they collectively spend
their time and attention and how they use symbolic behavior. It is more important
how management behaves than what management says.

Staff: What companies do to foster the process of developing managers and

shaping the basic values of the management team.

Shared values: The values that go beyond, but usually include, statement of goals
and objective in determining a firm’s destiny. These values are shared by most of
the people in the organization.

Skills: Those dominant attributes or capabilities that are possessed by an

organisation.

Model A
Egan introduced Model A for assessing and designing excellence into a system.
He differentiates between business and organisation. Business dimensions have an
outward focus and emphasize areas such as mission, markets, customers, systems
in the external environment. Organisational dimensions focus inward on areas such
as organisation structure , human resources and the organisation processes used to
engage in business.

Model A’s 4 basic areas are:

(a) Business dimensions: it focuses on the exploration and establishment of markets
and the delivery of quality products or services to clients or customers. There are
both operational and strategic business dimensions.

1. Strategic business elements: they provide purpose and direction to the organisation.
They include the following:

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 Markets, customers and clients: markets need to be identified, and customers needs
and wants within these markets need to be explored.
 Business environment: Competition, economic and social trends, new markets,
emerging technology etc. should be scanned periodically for both threats and
opportunities.
 Mission: A business mission together with people mission should be developed.
 Business philosophy: An integrated set of values and policy needs to be formulated
to govern the conduct of business.
 Major business categories: The major categories of products or services to be
delivered to customers need to be determined.
 Basic functioning: The system needs to be established on a firm’s financial
foundation.
 Strategic plan: All these elements need to be pulled together into a strategic plan that
establishes the long-term direction and goals of the system.

2. Operational business elements: They are a part of the day-to-day business of the
organisation and include the following:
 Products and services: that meet the needs and wants of the customers have to be
designed, manufactured, marketed and delivered.
 Work programs: Step by step work programs that insure efficient production and
delivery of high quality products and services need to be developed.
 Material resources: efficient programs for choosing and using the material resources
to be used in work programs need to be developed.
 Unit performance plan: these plans sets year-long operational priorities for each unit
and links its operations to the overall strategy of the organisation.

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(b) Organisational dimensions: It is the way in which a system structures itself and
pulls together its human resources in order to deliver business outcomes. The
business should drive the organisation, and the organisation should serve the
business. It includes the structure of the organisation-functional units and subunits-
and the deployment and utilization of human resources within these units. This may
include the following:
 Structure and division of labour
 Competence
 Teamwork
 Communication
 Reward system
 Individual performance plan.

(c) Management and leadership: Companies, institutions and agencies need both
effective management and ongoing leadership if the above has to happen. Managers
are the managers of process and managers of people. Effective managers coordinate
and facilitate the business and organisational elements of model A and make sure
things happen. Model A emphasizes the importance of developing a “culture of
feedback” within the system.

Effective leadership is not predicated in the traits of the leader but, rather on what
he or she accomplishes. Leadership means developing vision, turning visions into
workable programs and communicating the programs in the manner that generates
excitement and commitment that creates an environment of problem solving and
learning. Managers who are leaders continually pursue incremental change.

(d) Managing the shadow side of organisation : the shadow side includes the rational
factors that affect both business and organisational dimensions of the system. The
ability to manage the shadow side often determines whether a particular manager is
25
 successful or not, mediocre and excellent. Egan is explicit in stating that wise
managers know how to deal with the following “shadow side” elements:
 The natural messiness of the organisation: Wise managers know the looseness of the
system and how to work with it. They understand not just the formal system but the
informal system as well and know when to intervene and when to leave alone.
 Individual differences: The differences between people have to be addressed and
managed.
 The organisation as a social system: Organizations are social systems with
accompanying beliefs and drawbacks. Internal cliques and friendships sometimes
hinder the business of the system.
 The organisation as a political system: Wise managers understand and manage the
politics of the system at the service of system enhancing agendas.
 Organisational culture: Organisation needs to develop its own culture and sub-
culture. This culture either enhances or inhibits the system’s effectiveness.

CULTURAL WEB
This is a useful way of considering forces for and against change. It consists of :

 STORIES
 Rivalry/competition within organization
 Lane rangers
 Working hard
 Fun place to work
 Salary levels
 SYMBOLS
 Interaction styles
 Having a office
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  Conferences in prestigious locations
 Open and tidy work areas
 Consultants in office
 RITUALS AND ROUTINES
 Consultants working in close coordination with clients
 Induction process
 Memos issued
 No of meeting held
 Impromptu meetings and gatherings
 Information flows within and across departments
 Communication systems in the organization

 PARADIGM
 Core business
 Client focus
 Individualism and autonomy
 High expertise in HR policies
 Team orientation
 CONTROL
 Meeting billing /selling targets
 Team targets
 Team incentives
 Meeting quality objectives
 ORGANISATION
 Matrix structure of the organization
 Responsiveness to the clients
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  Accountabilities
 Networks existing in the organization
 POWER
 Accessibility to clients
 Expertise
 Interpersonal networks

RECRUITMENT & SELECTION

MEANING OF RECRUITMENT
The process of identification of different sources of
personnel is known as recruitment. According to Edwin B. Flippo “recruitment is
the process of searching for candidates for employment & stimulating them to
apply for jobs in the organization”. It is a linking activity that brings together those
offering jobs & those seeking jobs.

Dale S. Beach observed, “recruitment is the development &

maintenance of adequate manpower resources. It involves the creation of a pool of
available labour upon whom the organization can draw when it needs additional
employees.” recruitment refers to the attempt of getting interested applications &
providing a pool of prospective employees so that the management can select the
right person for the right job from this pool. Recruitment precedes the selection
process, i.e., selection of right candidates for various positions in the organization.

28
 Recruitment is a positive process as it attracts suitable applicants to
apply for available jobs. The process of recruitment:

(і) Identifies the different sources of labour supply

(іі) Assesses their validity

(ііі) Chooses the most suitable sources or sources

(іv) Invites applications from the prospective candidates for the vacant jobs.

SOURCES OF RECRUITMENT.
The various sources of recruitment may be grouped into the following two
categories:
1. Internal sources (recruitment from within the enterprise)
2. External sources (recruitment from outside)

INTERNAL SOURCES.
Internal source is one of the important sources of
recruitment. The employees already working the organization may be more
suitable for higher jobs than those recruited from outside. The present employees
may help in the recruitment of new persons also. Internal sources are discussed as
follows:

Transfers. It involves the shifting of an employee from one job to

another, one department to another or from one shift to another. Transfer
is good source of filling vacancies with employees from overstaffed
departments or shifts. At the time of transfer, it should be ensured that the
employee to be transferred to another job is capable of performing it. In
29
 fact, transfer does not involve any drastic change in the responsibilities,
pay & status of the employee. Transfers or job rotations are also used for
training of employees in learning different jobs.

Promotions. It leads to shifting an employee to a higher position,

carrying higher responsibilities, facilities, status & pay. Many companies
follow the practice of filling higher jobs by promoting employees who
are considered fit for such positions. Filling vacancies in higher jobs from
within the organizations has the benefit of motivating the existing
employees. It has a great psychological impact over the employees
because a promotion at the higher level may lead to a chain of
promotions at lower levels in the organization.

Advantages of Internal Sources

Filling vacancies in higher jobs from within the organization or through internal
transfers has the following merits:
Employees are motivated to improve their performance.

Morale of the employees is increased.

Industrial peace prevails in the enterprise because of promotional avenues.

Filling of jobs internally is cheaper as compared of getting candidates from

external sources.

A promotion at higher level may lead to a chain of promotions at lower

levels in the organization. This motivates the employees to improve their
performance through learning & practice.

30
 Transfers or job rotation is a tool of training the employees to prepare them
to higher jobs.

Transfer has the benefit of shifting workforce from the surplus departments
to those where there is shortage of staff.

EXTERNAL SOURCES

Every enterprise has to tap external sources for various

positions. Running enterprises have to recruit employees from outside for filling
the positions whose applications cannot be met by the present employees, & for
meeting the additional requirements of manpower. The following external
sources of recruitment are commonly used by the big enterprises:
Advertisement. Advertisement is the best method of recruiting persons for
higher & experienced jobs. The advertisements are given in local or national
press, trade or professional journals, newspapers & magazines. The
requirements of jobs are given in the advertisement. The prospective
candidates evaluate themselves against the requirements of jobs before
sending their applications. Management gets a wider range of candidates for
selection.

Employment Exchanges. Employment exchanges run by government are

also a good source of recruitment. Unemployed persons get themselves
registered with these exchanges. The vacancies may be notified with the
exchanges, whenever there is need. The exchange supplies a list of
candidates fulfilling required qualifications. Exchanges are a suitable source
of recruitment for filling unskilled, semi-skilled, skilled, and operative posts.
The job – seekers & job givers are brought into contact by the employment
exchanges.
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Management Consultants: management consultancy firms help the
organizations to recruit technical, professional & managerial personnel.
They specialize in middle level & top level executive placements. They
maintain data bank of persons with different qualifications & skills & even
advertise the jobs on behalf their clients to recruit right type of personnel.
These days, professional bodies of accountants, engineers, etc. also help
their members to get suitable placements in industrial organizations.

Educational Institutions or Campus Recruitments The jobs in trade &

industry are becoming technical & complex. These jobs require certain
amount of technical & educational qualifications. The employees maintain
close liaisons with universities & technical & other educational institutions.
The students are spotted during the course of their studies. Junior level
executives or managerial trainees may be recruited in this way.

Unsolicited Applications persons in search of employment may contact

employers through telephone, by post or in person. Generally, employers
with good reputation get more & unsolicited applications. If an opening is
there or is likely to be there then these persons are considered for such jobs.
Personnel department may maintain a record of unsolicited applications.
When jobs suitable for those persons are available those are considered for
employment.

Casual Callers: management may appoint persons who casually call on

them for meeting short-term demands. This will avoid following a regular
procedure of selection. These persons are appointed for short periods only.
They need not be paid retrenchment or lay off allowance. This method of

32
 recruitment is economical because management does not incur a liability in
pensions, insurance & fringe benefits.

Labour Contractors: it is quite common to engage contractors for the

supply of labour, when workers are required for short periods & are hired
without going through the full procedure of selection etc. contractors or
jobbers are the best source of getting them. The contractors maintain regular
contracts with workers at their places & also bring them to the cities at their
own expense.

Recommendations: Applicants introduced by friends & relatives may prove

to be a good source of recruitment. In fact many employers prefer to take
such persons because something about their background is known. Some
organizations have agreements with the trade unions to give preference to
blood relations of existing or retired employees if their qualifications &
experience are suited to fill the vacant jobs.

Merits of External Sources

The merits of external sources of recruitment are as under

33
 Qualified Personnel. By using external sources of recruitment, the
management can make qualified & trained people to apply for vacant jobs in
the organization.

Wider Choice. When vacancies are advertised widely, a large number of

applicants from outside the organization apply. The management has a wider
choice while selecting the people for employment.

Fresh Talent. The insiders may have limited talents. External sources
facilitate infusion of fresh blood with new ideas into the enterprise. This will
improve the overall working of the enterprise.

Competitive Spirit. If a company can tap external sources, the existing staff
will have to compete with the outsiders. They will work harder to show
better performance.

ITC Organisation

34
 Distribution of all Staff at ITC Headquarter

OED: OFFICE OF THE EXECUTIVE DIRECTOR 24

DO :DEPARTMENT OF OPERATIONS 242
DTCC: Division of Technical Cooperation and Coordination 75
35
DTCC/OD :Office of Director 4
DTCC/OIP: Office for Interregional Programmes 24
DTCC/OA: Office for Africa 20
DTCC/OAPLAC: Office for Asia-Pacific, Latin America and the Caribbean 17
DTCC/OASEC: Office for Arab States, Europe and the Commonwealth 10
DPMD: Division of Product and Market Development 85
DPMD/OD: Office of Director 3
DPMD/MAS: Market Analysis Services 36
DPMD/MDS: Market Development Services 23
DPMD/TIS: Trade Information Services 16
DPMD/TSS: Trade in Services Section 7
DTSS: Division of Trade Support Services 82
DTSS/OD: Office of Director 3
DTSS/BAS: Business Advisory Services 38
DTSS/EMDS: Enterprise Management Development Section 20
DTSS/IPSM: International Purchasing and Supply Management 16
DTSS/ETDU: E–Trade Development Unit 5
DPS: Division of Program Support 64
DPS/OD: Office of Director 2
DPS/GSPS: General Services and Publications Section 24
DPS/HRS: Human Resources Section 14
DPS/ITSS: Information Technology Services Section 13
DPS/FMS: Financial Management Section 11
TOTAL 229
Source: ITC Intranet - List: 20/11/2004 Staff Positions: distribution of all staff
resident in Geneva including permanent
staff, contract staff, consultants and interns.

Management of People in ITC

In recent years ITC management has successfully managed to start to change the
culture of the organization away from a bureaucratic mentality and towards a
service minded, innovation based culture. This is a long-term process that requires
careful management. The change of mentality cannot be carried out overnight, and
requires skilful and balanced management. Corporate services will have to be
developed not only for internal purposes, but also for the sake of improving
customers’ (beneficiary) services and satisfaction. ITC is a small organization,
36
with lots of people working on their own “pet projects” and having their own areas
of responsibility and with few constraints from a strategic management system
impinging on them. Hence, many of the staff is motivated to carry out their view of
their role with individual job satisfaction. This is related to a pride in the
organization created by the development by the top management level of increased
levels of visibility for ITC and the promotion of its role in the global context of
trade and development.

Our overall conclusions are much as those of the OIOS Report (2004) “ITC
provides a supporting working environment for its generally well qualified,
professional and motivated staff.” There are inevitably some dangers here:
• This rather “rosy” view of HRM in ITC, which is shared by top management, is
not reflected throughout the system and morale manifestly declines at the lower
levels.
• It is not obvious that all the work, whilst satisfying to the individuals, has any
direct relationship to the ITC targets or the overall ITC mission. Furthermore,
some individuals are being overloaded and this has increased focus on resource
allocation and mobilization within the organization.
• Staff stress towards the end of each year is common in many organizations and
needs to be carefully managed. In ITC this pressure is not formally recognized and
therefore not managed. At the end of the year, overtime is not feasible (since the
requirement to approve in advance doesn’t fit work needs). Attitudes to time off in
lieu of extra hours worked varies between managers. Furthermore, the Annual
Report is prepared for the end of the year: the heaviest workload period. Annual
reports could be prepared at other times of the year.
• This inadequate/uneven distribution of tasks, if not addressed, will affect the
quality of the work and the job satisfaction of individuals.

Strategic Human Resource Management

ITC is not a status-quo organization. Over the last decade, it has faced a number of
Managerial challenges and has responded to them effectively and succeeded in
reorienting Itself It has opted in favor of constantly refining its operations on the
basis of dialogue with its stakeholders. Given its importance (see above), HRM is a
strategic activity: this is not obviously the case in ITC. (Again the Evaluation
emphasize that it is discussing the management of HR by ITC, not just the role of
the HR department). As a straightforward example, it is clear that succession plans
for the retiring top management team, which should have been implemented
from five years ago (preparing replacements and a judicious mix of, say, four

37
internal and two external appointments), were not even identified as necessary
until last year. HRM is seen as external to, not a key element of, managerial roles.
HRM policies and practices need to be not only “vertically” consistent with the
mission and targets of the organization but also “horizontally” consistent, so that,
for example, the outcomes of the performance management system lead on to
obvious rewards and sanctions.

This is always the case in ITC (see below).

In addition, it is vital that the full set of HR available to ITC is considered

holistically: at present the Permanent Professional staff, the Contract Professional
staff, the Consultants, and the General Service staff (and the various combinations
of these categories) are considered as separate and rarely considered together. In
many cases these distinctions reflect tradition or budgetary drivers rather than the
strategic needs of the organization. The General Service staff/Permanent
Professional staff boundary is a particular issue. There are highly qualified General
Service staff frustrated by their managers’ attitudes towards them and their
inability to progress, often working alongside Permanent Professional staff
who are no more qualified. There is little evidence of forward planning of HRM in
ITC. The Evaluation could identify no policies relating to the kinds of HR skills
and attributes ITC will need in the future and how it intends to make the transition
towards those capabilities.

Line Management Capacity for HRM

There is a widespread feeling that past selection of higher level Permanent

Professional and Director staff has been carried out with little attention to the
people management competences required for these roles and that, as a
consequence, ITC does not have a high proportion of excellent managers. Indeed,
unlike many organisations in the UN system, ITC currently has no outline of
managerial competences and has neither adopted the UN system recommendations
nor developed its own list of managerial competences. The effect is that senior
staff are promoted or selected on the basis of technical competence alone or as a
reward for previously showing evidence of technical skill, rather than on the basis
of competences for the job they are about to take up. It also means that
38
management training (see below) is noticeable by its very limited and untargeted
nature. Without a set of competency criteria against which to assess individual
managers, it is difficult to see how such training needs could be identified.
The OIOS report (2004) noted that “a comprehensive HR strategy was being
developed”, but stated that it “had not seen any documentation…” and that
“important areas not cover by the indicators, such as recruitment and performance
assessment”. The position still seems to be the same.

Management Development
Like many other technical specialist International Organisations, ITC faces a dual
dilemma in its development activities. On the one hand, these technical specialists
are often in danger of failing to keep their expertise up to date as they become
immersed in the immediate tasks and have limited opportunity for attending expert
conferences, debating with university, government or scientific think-tank
colleagues and reading and contributing to the latest journals. On the other hand,
their jobs are arguably increasingly at the project management end of activities
where technical expertise above a certain level is perhaps less crucial, but they
rarely undertake project management or general management training.

ITC should identify which staff are in managerial positions and which in senior
technical specialist positions (numbers supervised would be an obvious way to
determine that). Clarity about the role and competences required of staff in such
positions would enable the training needs of such mission-critical staff to be
assessed and addressed. There is a dearth of serious management training in ITC.
39
It is important that people management responsibilities are clearly identified and
monitored in the assessment system for all managerial staff.

Contracts
There is a trend towards hiring staff on a fixed term basis. Since the late 1990s,
more than half of the chiefs of sections have been employed on a fixed-term
basis5.. This provides the senior management with a large degree of flexibility,
with respect to replacing senior staff, and opens up the option of internal mobility
within the organisation. For employees hired on fixed terms, performance criteria
can develop as an integral part of the employment contract. However, this form of
employment can give serious motivational problems, with staff at the end of their
contracts more concerned about their renewal than about the tasks they are charged
to undertake. It also increases the administrative burden on the HR department.
The use of staff at the General Service level on short-term contracts appears to be a
particular problem. There are strategic HRM issues with the increased use of
Contract Professional staff on short-term contracts. It is not clear, in other words,
that this use is a thought through response to the exigencies and current and needs
of ITC operations: in many cases it is entirely a short-term response to budget
pressures.

Consultants
ITC maintains a “consultants” roster, which includes key information on each
individual’s qualifications and experience, and from which the staff can select
potential candidates when external consultancies are needed. The form for
Curriculum Vitae contains minimal information compared to that required by
many organizations and consultancies when mobilizing experts, which suggests
that information on consultants is obtained through other channels such as
recommendations and contacts. Consultants are identified through the network of
the professional staff of ITC. The HRS screens candidates to ensure that they meet
the minimum qualifications. The roster, as designed presently, is seen as an
inefficient tool by the majority of the staff interviewed:
• The system is mainly reactive as limited efforts are deployed to identify potential
qualified consultants and attract new candidates;
• The competence base is inadequate; getting qualified consultants in specialised
fields is not always possible; and
• There are time constraints for selection of consultants due to registration and
approval procedures.

40
Consultants are hired to provide a defined deliverable, which may be a study,
training materials, report etc. The deliverable becomes the property of ITC and is
integrated into its programme. A means of drawing on expertise and alleviating the
pressure of resource mobilisation is to draw on experienced external consultants.
And this is where the flexibility of the roster plays a very important role.

Division of Program Support currently has on its work programme a project to

enhance the system to facilitate collection and management of data in the
consultants’ roster and for intranet access. A new online system will be established
for application and screening candidates and linked to the improvement of the
consultants’ roster and candidate selection Process (ITC business plan 2003-2005).
There is a general feeling within the organization that the pressure to spend money
before each year-end means that ITC staff tend to worry less about quality than
about availability.

The Employment Cycle in ITC

Filling Posts
ITC posts are not subject to the geographic or gender distribution rules applied in
the UN common system organisations, but are increasingly based on the
identification of competences and skills needed to fulfil the functions of the
organisation, and based on the future expected performance of individuals. There is
some evidence that ITC’s recruitment is becoming more difficult. The Evaluation
was quoted one example of a Head of Section advertised four times in a year:
evidence that the organisation has problems both in its succession planning and in
its capacity to attract good quality candidates from outside. Members of the SMC
told us that ITC “needs more proper managers” and increasingly is looking to the
private sector in an attempt to find them. This reflects the OIOS (2004) report
conclusion that “efforts to streamline the recruitment process” were necessary and
that “one of the main goals of the new staff selection system, i.e. to empower
managers in making recruitment selection decisions, has not become part of the
ITC recruitment process”. Job Descriptions are still very technical and generally
include nothing on people management skills.

The 2003 staff survey found that almost half of those who responded either
disagreed or strongly disagreed that selection for posts was transparent; a third did
not believe that either General Service or Permanent Professional posts were
41
awarded on the basis of merit. The Evaluation heard comments about the lack of
transparency in appointments; about differences between departments; and about
an “old boy network”. However, the Evaluation has no evidence as to whether the
system has improved since 2003.

Communication
A key element in a knowledge management based organisation such as ITC is
internal communication. ITC has a number of communications mechanisms both
formal and informal for keeping staff informed. The most useful formal
communications mechanisms identified in the 2004 survey are considered to be
number one: the Project Portal, number two the SMC minutes, and number three is
the Division and Section meetings. The Project Portal is used at least once a week
by 70% of respondents, and 87% found the information on the portal to be quite
accurate to very accurate.
Nevertheless, respondents also feel that communications could be improved.
27.7% felt that communication was “good” or “very good”. 40% felt that
consultation among staff of different divisions on product and program delivery
was “good” or “very good”. Some typical comments include the following.

• Annual Operations Plan (AOP) could be a very useful source of information if

properly implemented;
• Groups presenting their activities are also providing an excellent vehicle for cross
functional communication. However, perhaps the most critical element is the fact
Evaluation are missing the process of cascading down the Annual Business Plan
and Operating Plan;
• Informal gatherings such as coffee breaks, lunches and ITC parties provides
useful information; and
• Less formal, but still official, communications mechanisms such as lunch-time
presentations appear to be working well.
42
There is some evidence that internal communications have improved in the two
years since the last staff survey. Thus, management’s efforts to increase and
improve communication appear to be yielding results. The evaluators can only
encourage further activity in this direction.
An excellent feature of the SMC functioning is the open and free discussions and
exchange of views on issues at the highest management level. The sharing of
decision making and transparency within higher management means that, as the
2009 OIOS report pointed out: “the SMCs practices enhance transparency of
decision-making in ITC.

Training and Development

HRS prepares the annual training plan: Division Directors are requested to indicate
the skills gaps that have been identified among their staff. Gaps can be identified in
the context of the Performance Appraisal process, or as part of overall programme
performance evaluation. HRS endeavours to identify facilitators and organize
courses that will address the identified needs. Training plans are then developed.
Capacity-building is the core of the programmes and ITC staff members are
expected to be qualified in this. Yet technical specialists may be recruited who are
not trained in the skills and knowledge for capacity building and managing
technical assistance projects. In addition, Division of Programme Support
organizes courses such as Project Management, Presentation Skills, Public
Speaking. Enterprise Management Development Section also has a programme for
training of trainers. Like the OIOS, the Evaluation considers that there is a “need
for more technical and substantive training”.

There are three main problems here:

1. The ITC training and development budget is low for an organisation with ITC’s
scale and much of that budget is spent on Information Technology and language
training. The Evaluation has already noted issues about management development
above.
2. Managers are not necessarily good at identifying staff training needs and staff
may not be aware of the options open to them.
3. Many people feel under too much pressure with their work to consider taking
time to learn. This is, of course, a vicious circle as staff who do not learn will
increasingly struggle to keep up with he work demands (the old joke: “I’ve got too
much work to go on a time management course…”).

43
Training and development are crucial not just to the effective achievement of the
mission of ITC but also in motivation, by showing that the organisation cares about
its employees’ capacities. Good training and development is seen as a mutual gains
reward for the employees, opening up the opportunity for career advancement or
career change (it is recognized that in ITC opportunities for career advancement
are relatively few as people like to work in the organisation and tend to stay for a
long time). Even though it appears that progress has been made recently, there is
an opportunity to undertake further research on the importance of training (in the
broadest sense) as an employee motivator.

Career Planning
The Evaluation could find no evidence of career planning for staff and
considerable concern about its absence. This is a particular challenge for ITC
because it is a small agency employing technical specialists with limited internal
opportunities for promotion. Paradoxically, in such circumstances, there is greater
pressure on the organisation to show that it is concerned about people’s futures, is
actively seeking to provide variety and mobility, is thinking broadly and is clear
about options. The 2004 survey of Permanent Professional staff conducted by the
Evaluation found, like the wider 2003 staff council survey, that around half of the
staff did not feel that they are treated equally in terms of career progression. In all
surveys there is an element of disappointment about this issue, but these are
comparatively high figures. There is also evidence that the selection of candidates
for posts is not seen by everyone as being undertaken in a transparent manner or
that posts are awarded on the basis of merit.

Succession Planning
Linking the issues of retirement of senior management with the concern for
continuity and career planning in the context of a comprehensive HR strategy
raises the related issue of succession planning. Clearly, the retirement of the whole
SMC in the next year has made this issue very apparent, but it should go down
through the organisation. The SMC argues that this will “Only become real in
2005” but that is obviously too late to have started making the necessary
arrangements. The learning message is that there needs to be a succession plan for
all managerial appointments. The Evaluation has not seen a succession plan or a
relevant part of an HR strategy. As with all organisations, and particularly the case
with more democratic and transparent organisations, there are limits to the rigidity
of such planning: but that, combined with the aging employment structure within
ITC,

44
 What is Training in terms of organization?

“Transferring information and knowledge to employers and equipping

employers to translate that information and knowledge into practice with a
view to enhancing organization effectiveness and productivity, and the quality
of the management of people.”

It also means thatin organizational development, the related field of training and

development (T& D) deals with the design and delivery of workplace learning to
improve performance.
Difference between Training and Learning
There is a big difference:
➢ 'Training' implies putting skills into people, when actually we should be
developing people from the inside out, beyond skills, i.e., facilitating learning.
➢ So focus on facilitating learning, not imposing training.
➢ Emotional maturity, integrity, and compassion are more important than
skills and processes. If you are in any doubt, analyze the root causes of your
organization's successes and your failures - they will never be skills and processes.
➢ Enable and encourage the development of the person - in any way that you
can.
➢ Give people choice - we all learn in different ways, and we all have our own
strengths and potential, waiting to be fulfilled. Talk aboutlea rning, not training. 
45
 Focus on the person, from the inside out, not the outside in;

It is a classic question in the training field, first raised by human capital theorists,
that why firm strain their employees. Many attempts have been made to address
this question, but the question of why firms provide general-skill training has not
been fully understood. There have been two main theoretical approaches towards
employee training, namely, the human capital approach and the technology-based
approach. The human capital approach regards training as investment inhuman
capital. Training is provided only when the benefit from productivity gains is
greater than the cost of training. The technology-based approach regards training
as a skill formation process. According to this approach, the expanded training in
the contemporary period is driven by the rapidly changing technologies and work
reorganization. These two approaches are popular in academic and policy
discussions. What they have in common is that they assume an instrumental logic
and technical rationality behind training decisions. Training is provided because it
satisfies the functional needs of an organization. Studies with these approaches
have largely over looked the content of employee training, as if all kinds of
training programs equally contribute to human capital accumulation or skill
formation. Moreover, personal development training becomes a puzzle if viewed
from these approaches, because it does not seem to follow from an instrumental
logic or technical rationality.

The Puzzle about Personal Development Training

46
The puzzle about personal development training comes in the following four ways.
First, it is not innately or immediately related to the technical aspects of
specific job tasks. Second, prior need analysis is rarely conducted for such
training, despite suggestions to do so in many training handbooks.
Third, organizations and trainers seldom conduct evaluations of behavior or
outcome changes brought out by such training.

Evaluation, when there is one, is often about how one feels about the training or
what one has learned. The evaluation questionnaire is often called a "smile
sheet," as trainees often respond happily to the questions. But the impact of the
training remains uncertain. Fourth, the rapid expansion of personal
development training has taken place in the absence of scientific evidence of
any link between such training and improvement in organizational bottom lines.
Core Argument
So, why have organizations increasingly engaged in personal development
training? It is because that the rise of the participatory citizenship model of
organization over time has driven the expansion of personal development training
in organizations. This argument is based on an institutional perspective towards
organizations. It is distinct from previous approaches to training in two ways. First,
it recognizes that training is not only provided to satisfy functional needs of firms,
but is also shaped by the shared understanding about individuals and organizations,
which is called "organizational model" in this study and is independent of the
functional needs. Second, training decisions are not only affected by the internal
conditions of an organization, but are also affected by the dominant ideologies and
practices in the organizational field.

Importance of Developing a Role in Training

Developing a national role in training is important for an employers' organization

for several reasons. First, it enables the organization to contribute to the
47
development of a country's human capital, through its influence on education
policies and systems and training by public training institutions, to better serve
business needs. It also enables it to influence employers in regard to the need for
them to invest more in training and employee development - which employers
should recognize as one key to their competitiveness in the future. Second, it
provides an important service to members, especially in industrial relations in
respect of which sources of training for employers in developing countries are
few. Third, it is an important source of income provided the organization can
deliver relevant quality training. Fourth, it compels its own staff to improve their
knowledge without which they cannot offer training to enterprises through their
own staff. Fifth, the knowledge required for training increases the quality of other
services provided by the organization - policy lobbying, advisory and
representation services. Sixth, it contributes to better human relations at the
enterprise level and therefore to better enterprise performance, by matching
corporate goals and people management policies. Finally, it improves the overall
image of the organization and invests it with a degree of professionalism, which
can lead to increased membership and influence. Many entrepreneurs seem to view
employee training and development as more optional than essential...a viewpoint
that can be costly to both short-term profits and long-term progress. The primary
reason training is considered optional by so many business owners is because it's
viewed more as an expense than an investment. This is completely understandable
when you realize that in many companies, training and development aren't focused
on producing a targeted result for the business. As a result, business owners
frequently send their people to training courses that seem right and sound good
without knowing what to expect in return. But without measurable results, it's
almost impossible to view training as anything more than an expense.
Now contrast that approach to one where training's viewed as a capital
investment with thoughtful consideration as to how you're going to obtain an
acceptable rate of return on your investment. And a good place to start your
"thoughtful consideration" is with a needs analysis. As it relates to training and
development, needs analysis is really an outcome analysis--what do you want out
of this training? Ask yourself, "What's going to change in my business or in the
behavior or performance of my employees as a result of this training that's going to
help my company?" Be forewarned: This exercise requires you to take time to
think it through and focus more on your processes than your products.

Beyond Training: Training and Development

48
Training is generally defined as "change in behavior" - yet, how many trainers and
managers forget that, using the term training only as applicable to "skills training"?
What about the human element? What about those very same people we want to
"train"? What about their individual beliefs, backgrounds, ideas, needs and
aspirations?
In order to achieve long-term results through training, we must broaden our vision
to include people development as part of our strategic planning. Although training
covers a broad range of subjects under the three main categories (skills, attitude,
knowledge), using the term "training" towards the business, the customers, and
themselves (taking charge of their own training, development, and work
performance). They were more than pleased when he asked them to express their
opinions, make comments and suggestions.
He was surprised at the immediate transformation that took place. He began
receiving excellent reviews from his customers, the employees worked as a team,
their motivation sky-rocketed and he never had to replace them! All this was
accomplished by extending the previous concept of training to that of training and
people development. Training and Development represents a complete whole that
triggers the mind, emotions and employees' best work performance. It is not only
business managers and owners who must do this shift in thinking, but Human
Resources Directors and Training Managers (whose title should be "Training and
Development" Managers). By their actions, they should offer a personal example,
coaching and guiding all the people in an organization to think "beyond training"
and invest efforts in people:
•Professional development
•Personal development.
Contrary to what some manager’s think, people do not quit a place of work as soon
as they have grown personally and professionally through training and
development programs - at least they do not do so for a long while.

Training & Evaluation

Training
Improving business performance is a journey, not a destination. Business
performance rises and falls with the ebb and flow of human performances. HR
professionals lead the search for ways to enhance the effectiveness of employees in
their jobs today and prepare them for tomorrow. Over the years, training
programmes have grown into corporate with these goals in mind. Training
programmes should enhance performance and enrich the contributions of the
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workforce. The ultimate goal of training is to develop appropriate talent in the
workforce internally. In India, training as an activity has been going on as a
distinct field with its own roles, structures and budgets, but it is still young. This
field is however; expanding fast but controversy seems to envelop any attempts to
find benefits commensurate with the escalating costs of training.

Training has made significant contributions to development of all kinds. Training

is essential; doubts arise over its contribution in practice. Complaints are growing
over its ineffectiveness and waste. The training apparatus and costs have multiplied
but not its benefits. Dissatisfaction persists and is growing at the working level
where the benefits of training should show up most clearly. This disillusionment
shows in many ways – reluctance to send the most promising people for training,
inadequate use of personnel after training etc. With disillusionment mounting in
the midst of expansion, training has entered a dangerous phase in its development.
Training is neither a panacea for all ills nor is it a waste of time. What is required is
an insight into what training can or cannot do and skill in designing and carrying
out training effectively and economically.

The searchlight of inquiry may make the task and challenges stand out too starkly,
too simply. Using experience with training in India and other rapidly developing
countries has this advantage at similar risk. The contribution that training can make
to development is needed acutely and obviously. At the same time, the limited
resources available in these countries make this contribution hard to come by.
These lines are sharply drawn; on the one hand, no promise can be ignored; on the
other, no waste is permissible.

The training process is made up of three phases:

Phase 1: Pre-training. This may also be called the preparation phase. The process
starts with an Understanding of the situation requiring more effective behavior. An
organization’s concerns before training lie mainly in four areas: Clarifying the
precise objectives of training and the use the organization expects to make of the
participants after training; selection of suitable participants; building favorable
expectations and motivation in the participants prior to the training; and planning
for any changes that improved task performance will require in addition to training.

Phase 2: Training. During the course of the training, participants focus their
attention on the new impressions that seem useful, stimulating and engaging. There
is no guarantee that the participants will in fact learn what they have chosen. But
the main purpose remains: participants explore in a training situation what interests
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them, and a training institution’s basic task is to provide the necessary
opportunities.
Having explored, participants try out some new behavior. If they find the new
behavior useful, they try it again, check it for effectiveness and satisfaction, try it
repeatedly and improve it. Finally, they incorporate this new facet into their
habitual behavior in the training situation. If they do not find it useful, they discard
it, try some variant, or discontinue learning in this direction. The intricate process
of selection and testing is continuous and more or less conscious. It is important
that work organizations meanwhile prepare the conditions for improved
performance by their participants upon their return.
Phase 3: Post-training. This may be called the "follow up" phase. When training
per se concludes, the situation changes. When the participants return back to work
from the training, a process of adjustment begins for everyone involved. The newly
learned skills undergo modification to fit the work situation. Participants may find
their organizations offering encouragement to use the training and also support for
continuing contact with the training institution. On the other hand, they may step
into a quagmire of negativity.
More effective behavior of people on the job in the organization is the primary
objective of the training process as a whole. In the simplest training process,
improvement is a dependent variable, and participants and organizations
independent variables.

The training process has the following major objectives:

1) Improvement in Performance
Training will be an important aid to managers for developing themselves as well as
their subordinates. It is not a substitute for development on the job, which comes
from doing, experiencing, observing, giving and receiving feedback and coaching.
Research has shown that80% of a person’s development takes place on the job.
However, training can contribute the vital20% that makes the difference. Training
can bring about an improvement in a person’s:
✔ Knowledge
✔ Skills
✔ Attitude
✔ Thereby raising his potential to perform better on the job.
2) Growth
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Training is also directed towards developing people for higher levels of
responsibility there by reducing the need for recruiting people from outside. This
would have the effect of improving the morale of the existing employees.
3) Organizational Effectiveness
In company training provides a means for bringing about organizational
development. It can be used for strengthening values, building teams, improving
inter-group relations and quality of work life. The ultimate objective of training in
the long run is to improve the company’s performance through people performing
better.
Benefits of Training Evaluation
Evaluation has three main purposes:
Feedback to help trainers understand the extent to which objectives are being met
and the effectiveness of particular learning activities – as an aid to continuous
improvement Control to make sure training policy and practice are aligned with
organizational goals and delivering cost-effective solutions to organizational
issues. Intervention to raise awareness of key issues such as pre-course and post-
course briefing and the selection of delegates Evaluation is itself a learning
process. Training which has been planned and delivered is reflected on. Views on
how to do it better are formulated and tested .

The outcome may be to:

➢ Abandon the training
➢ Redesign the training – new sequence, new methods, new content, new trainer
➢ Redesign the preparation/pre-work – new briefing material, new pre-course
work
➢ Rethink the timing of the training – earlier or later in people’s career, earlier or
later in the training programme, earlier or later in the company calendar
➢ Leave well alone The following are the clear benefits of evaluation:
➢ Improved quality of training activities
➢ Improved ability of the trainers to relate inputs to output
➢ Better discrimination of training activities between those that are worthy of
support and those that should be dropped
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➢ Better integration of training offered and on the job development
➢ Better co-operation between trainers and line-managers in the development of
staff
➢ Evidence of the contribution that training and development activities are
making to the organization
➢ Closer integration of training aims and organizational objectives

The Way Ahead

The development of learning organizations, working to harness the brainpower,
knowledge and experience of their people, reflects the fundamental importance of
training and learning for those organizations that hope to prosper in the new
millennium. The rend towards a more" empowering" style of management and an
increasing emphasis on self-development have combined to bring about a move
away from didactic instruction towards coaching and facilitation and away from
"trainer" towards "performance improvement consultant".
In the coming future, the following trends are likely to be seen:
Increased use of virtual reality, the internet and multi-media training
Emphasis on cross-cultural development

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Remote learning to reflect changing patterns of work

The Training Role

Internal Training
The role of an employers' organization in training has to be viewed from different
perspectives. First and foremost it must be viewed from an "internal" point of view
i.e. the training and development of its own staff. This is essential to the
effectiveness of the organization's training services as well as to the other services
it provides members, all of which fall within the following:
•Influencing the legal and policy environment needed for business growth and
development
•Direct services to members
Cross-Training as a motivational and problem-solving Technique

Many managers, including human resources directors, mistakenly believe that

employee motivation can be won through monetary rewards or other perks. They
learn soon enough that such perks are taken for granted and that money is not the
key to employee motivation. A professional and unified management, in a good
work environment, is the basis on which to build employee motivation.
While high employee turnover reflects on low morale and lack of motivation,
when seen from another angle, the absence of turnover quickly results in de-
motivation since the possibility of motion and forward-motion is taken away from
employees. It is against human nature to remain static, performing the same duties
day in, day out, without expectations of change in routine or opportunities for
advancement.
Following a reading or lecture on the subject, managers sometimes implement
"job enrichment “in a misguided manner, adding unrewarded responsibilities on
the shoulders of their supervisors and employees. This results in a feeling of
exploitation and has the reverse of the intended effect An effective training
technique which results in motivation is cross-training, when implemented
horizontally, upward and downward. Department heads, assistants and employees
can cross-train in different departments or within the department itself. With
background support, employees can have one day training in the role of department
head ("King for the Day").When a General Manager is away, department heads can
take roles replacing him, which is a form of cross-training.
Cross-training should be carefully planned and presented as a learning
opportunity. It should be incorporated in a hotel's master yearly training plan,
covering all positions and departments. It should begin with supervisory level and
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filter down to entry-level positions. Housekeeping should cross-train in Front
Office and vice-versa; Front Office in Marketing, Sales, Public Relations, Food &
Beverage, Banquets, Security; Marketing & Sales in Front Office, Food
&Beverage, Purchasing; Food & Beverage Service in the Culinary department and
vice versa; Human Resources in different departments and vice versa.
This technique achieves the following objectives:
•Prevents stagnation
•Offers a learning and professional development opportunity
•Rejuvenates all departments
•Improves understanding of the different departments and the hotel as a whole
•Leads to better coordination and teamwork
•Erases differences, enmity and unhealthy competition Increases knowledge,
know-how, skills and work performance
•Improves overall motivation
•Leads to the sharing of organizational goals and objectives.
Sending people to work in another department at a moment's notice is not what
cross-training is about. This has to be an effective planned process. Employees
must "buy" into the idea, been courage to give feedback and make suggestions for
improvement. They become "partners”. Departmental communications meetings
can be used to share lessons learned. When employees think "the grass is greener
on the other side of the lawn" they soon realize their mistake after exposure to
other departments. They return to their job with a better attitude.

Problems for Employers' Organizations Developing Training Role

Several reasons account for the problems faced by employers' organizations in
training their own staff, and in providing training to members. They include the
following:
• Unlike enterprises which can have their staff trained in management and other
traininginstitutions, there are no courses and training institutions which are geared
to the needs ofemployers' organizations. This places a heavy responsibility on
senior staff to train newrecruits and on staff to develop themselves. Therefore
organizations often rely on the ILOto conduct training programmes designed to
serve the needs of employers' organizations,and to provide staff with study tours to
other employers' organizations.
•Most organizations do not have skilled trainers i.e. persons who have been trained
as trainers.
• Inadequate training material

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• Inadequate information/knowledge relating to labor-related subjects needed to
attract enterprises to the organization's training programmes.
• The economic viability of having full time training staff. Due to financial
constraints, an employers' organization would generally have to keep full time
training staff to minimum. Therefore staff with special skills providing advisory
and representation services should be trained as trainers to enable them to
undertake some training in their areas of expertise.

Organizational Change

Conventional organizational change, which typically encompasses training and

development, and 'motivation', mostly fails.
Why? Are the people stupid? Can they not see the need for change? Do they not
realize that if the organization cannot make these changes then we will become un
competitive. We will lose market share. There will be job cuts. We will eventually
go out of business. Can they not see it? Actually probably not. Or more precisely,
people look at things in a different way. Bosses and organizations still tend to think
that people whom are managed and employed and paid to do a job should do what
they're told to do. We are conditioned from an early age to believe that the way to
teach and train, and to motivate people towards changing what they do, is to tell
them, or persuade them.

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 HYPOTHESIS

We believe that the three sub-systems of HRD namely Recruitment & Selection ,
Compensation ,& Carrier Development, contribute towards the success of an
organization.

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 Methdology

i) QUESTIONNAIRE METHODS

a) Personal Interviews

b) Mail Survey

c) Telephonic Interviews

ii) EXPLORATORY RESEARCH

 In Depth Interviews

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 OBSERVATIONS

Our observation as follows

Recruitment & Selection

Recruitment & Selection as rated by ITC is a moderately important factor,

contributing towards its success. Recruitment & Selection is the process to
recruit and select new employees.

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 CONCLUSION

Upon analyzing the above organization we have concluded the H.R.

department gives. We have 12 respondents from the H.R and 13 respondents from
the Non H.R Dept. of this organization and finally reached consensus that the non
H.R. departments are not very satisfied with the policies of the above three
subsystems.

Recommendations

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1. ITC needs to identify bottlenecks and ensure back-ups for staff with heavy
workloads and to mobilize resources and distribute the tasks more evenly. ITC
should explore the benefits of adopting an “annual hours” work contract.
2. ITC should improve the HR planning process to ensure smooth changes and
continuity in the skills and competence needed at ITC. This should be a regular
item on the senior management team agenda. ITC should develop and publicise a
comprehensive HR strategy built around the development of a set of managerial
and technical competencies.
3. When a new management team is in place, ITC should develop a formal change
management process and program to take the organisation in the direction decided
by the new SMC.
4. HRM in ITC needs to be considered and monitored holistically: all the HR,
whatever contact they are on, are vital to the effective operation of such a tightly
resourced organisation and need to be handled comprehensively.
5. The production of the comprehensive HR strategy is the responsibility of SMC
and should be accelerated and linked to a set of clear strategic principles and
criteria for the management of people, with managers selected against managerial
competences and well-trained in management would be a valuable addition to the
administrative HR management currently in place.
6. Training and development for managerial staff is crucial to ITC meeting its
targets. Spending on training and development, as a proportion of the total budget,
should be increased.
7. As the new PAS is brought on-stream it needs to emphasize staff management;
and in particular the ability of such managers to develop subordinates.
8. ITC should examine carefully its use of different forms of employment contract
to ensure that it is deriving the maximum advantage from the options available to
it.
9. ITC should extend its pool of consultants, making sure that consultants are
selected for “fit for purpose” reasons. That will mean using a wider pool and
relying less on a small number of those currently being used. Project managers
should be required to show that they have updated their list of consultants and that
none have been used for more than 100 days per year. The new online system
needs to be established as a priority, linked to application by and screening of
candidates and to the improvement of the consultants’ roster and candidate
selection process.
10. ITC needs to examine its staff allocations and ensure that there are, wherever
possible, younger people working alongside older people at every level.
11. ITC should evaluate establishing pro-active regional or country representation
in order to be closer to both its clients and its stakeholders and partners.
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12. Whilst recognizing the progress that has been made communication is an issue
where no management can afford to relax its attention. The Evaluation would echo
the OIOS report that “Enhanced horizontal communication and strengthened
divisional and intersectional cooperation in project development and
implementation would further increase the value of ITC activities”.
13. With the OIOS report, the Evaluation believe that “the training strategy should
be finalized expeditiously and should address the need for more extensive
substantive training and organisation-wide sharing of professional expertise”.
14. OIOS advised that “ways to facilitate movement of staff among ITC divisions
should be explored”. ITC should clarify and utilize a rotation program for staff,
giving them the opportunity to move between departments. This should be
monitored and the number of such movements be reported to the senior
management team annually. New life should be breathed into ITC’s mobility
program and the opportunity for second mends, to and from UN or WTO, but also
to governments, universities and other bodies, should be made to work effectively.
15. As a subsection of the HR strategy and linked to the training and development
strategy, ITC should develop a consistent approach to career planning and
development.
16. As part of its comprehensive HR strategy and linked to the development
strategy, ITC should develop succession planning policies.
17. ITC should develop a comprehensive performance identification
(measurement) system that takes into account both financial (objective) and non-
financial (subjective) measures11.

As our first recommendation to the H.R. department we would say

that this department needs to establish a permanent system of feedback from all
the employees so that they are always up to date and in touch with all the
employees ongoing needs and problems. Hence they employees would be able to
solve their issues as soon as possible and therefore become more productive to the
company.

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 Secondly the H.R. department needs to identify the needs of the employees, form
suitable strategies which address the needs of the employees and implement those
strategies, so as to enhance the performance of the employees.

The training provided by the companies should be conducted by highly skilled

professionals and the training needs a greater degree of specialization.

Training and development should also be conducted at higher levels of

management as it would have a direct impact on all the other levels.

A change in the job responsibilities or providing the employees with everyday

challenges in the job design will enhance the motivation of the employee and
thereby his performance.

The job structure should so designed that it meets the esteem needs of the
employees.

LIMITATION

During the course of our project we have faced some difficulties in collecting the
in formation and also in completing the project accurately. Throughout this journey always
th e road was not smooth; sometimes there were stones and thorns on the roads. We are go
ing to state all of them in the following:-

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  Company privacy policy is a major hurdle which restricts the free-flow of
information.

 Due to their busy schedule many of the higher level employees couldn’t
give us enough time and hence we retrieve a complete in depth
information as desired.

BIBLOGRAPHY

The following are sources of information from where we have got help to complete
this project. The names of those sources are given in the following:-
1. PERSONAL/ HUMAN RESOURCE MANAGEMENT – BY

DAVID.A.DECENZO

&

STEPHEN.P.ROBBINS.
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2. HUMAN RESOURCES MANAGEMENT – BY

MIRZA.S.SAIYADAIN.

3. HUMAN RELATIONS AND ORGANISATIONAL BEHAVIOUR

– BY

R.S.DWIVEDI.

4. WEBSITE ADDRESS AS FOLLOWS:

 www.itcportal.com

5. JOURNAL FROM ITC

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 ANEXTURE

1. Filled in questionnaires of eminent personnel’s from the HR Department of

ITC.

2. Filled in questionnaires of eminent personnel’s from the Non-HR

Department of ITC.

3. Collected about 300 visiting cards from the eminent employees working in
both the HR and Non HR Dept.

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