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EFFECTIVENESS OF TRAINING AND DEVELOPMENT

PROJECT REPORT ON
EFFECTIVENESS OF
TRAINNING AND DEVELOPMENT
IN ONGC

SUBMITED IN PARTIAL FULFILMENT OF AWARD OF THE


DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION.

SUBMITED BY: PALLAVI PANDEY.

MBA (HR)

ROLL NO: 1401209

ENROLMENT NO:
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

DECLARATION

I hereby declare that this project work, which is being presented in this project
report, entitled “EFFECTIVENESS OF TRAINING AND DEVELOPMENT IN
ONGC”, in partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION, submitted in Department of
Management, and Head Office ONGC, Dehradun; is an authentic record of my
original work, under the guidance and supervision of my mentor PROF. SANJEEV
CHAUHAN and my trainer MR. AMIT MINZ.

PALLAVI PANDEY

MBA (HR)
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

ACKNOWLEDGEMENT

Writing though a solitary task, but I have been fortunate enough to be helped and
guided by many talented and caring people. I wish to express my regards and
gratitude to all the valuable people without whom the project would not have been
completed.

As always, I have to start by thanking my mentor PROF SANJEEV


CHAUHAN, for his help and guidance throughout the project. I would also like
to thank MR AMIT MINZ, my trainer at ONGC. It's been an amazing experience
working with him; he has been a very wonderful trainer and a very
compassionate person. This project is the result of his continuous encouragement,
moral support and cooperation. I would also like to sincerely thank the staff
members of the company, and the respondents who have helped me in getting all
the relevant information in the completion of my project work.

Thank you for everything.

PALLAVI PANDEY

MBA (HR)
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

LIST OF TABLES
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

INTRODUCTION
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

HISTORY OF ONGC
Phase I (1947-1960)
During the pre-independence period, the Assam Oil Company in the
northeastern and Attock Oil company in northwestern part of the undivided India
were the only oil companies producing oil in the country, with minimal exploration
input. The major part of Indian sedimentary basins was deemed to be unfit for
development of oil and gas resources.
After independence, importance of oil and gas was realized by the national
government for the rapid industrial development and its strategic role in defense. In
1955, Government of India decided to develop the oil and natural gas resources in
the various regions of the country as part of the Public Sector development. With
this objective, an Oil and Natural Gas Directorate was set up towards the end of
1955, as a subordinate office under the then Ministry of Natural Resources and
Scientific Research.
In August, 1956, the Directorate was raised to the status of a commission
with enhanced powers, although it continued to be under the government. In
October 1959, the Commission was converted into a statutory body by an act of the
Indian Parliament

Phase II (1961-1990)
ONGC not only found new resources in Assam but also established new oil
province in Cambay basin (Gujarat), while adding new petroliferous areas in the
Assam-Arakan Fold Belt and East coast basins (both inland and offshore).
ONGC went offshore in early 70's and discovered a giant oil field in the
form of Bombay High, now known as Mumbai High. This discovery, along with
subsequent discoveries of huge oil and gas fields in Western offshore changed the
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

oil scenario of the country. Subsequently, over 5 billion tonnes of hydrocarbons,


which were present in the country, were discovered. The most important
contribution of ONGC, however, is its self-reliance and development of core
competence in E&P activities at a globally competitive level.

Phase III (1990 Onwards)


ONGC was re-organized as a limited Company under the Company's Act,
1956 in February 1994.
After the conversion of business of the erstwhile Oil & Natural Gas
Commission to that of Oil & Natural Gas Corporation Limited in 1993, the
Government disinvested 2 per cent of its shares through competitive bidding.
Subsequently, ONGC expanded its equity by another 2 per cent by offering shares
to its employees.
During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream
giant and Gas Authority of India Limited (GAIL) - the only gas marketing
company, agreed to have cross holding in each other's stock. This paved the way
for long-term strategic alliances both for the domestic and overseas business
opportunities in the energy value chain, amongst themselves. Consequent to this
the Government sold off 10 per cent of its share holding in ONGC to IOC and 2.5
per cent to GAIL. With this, the Government holding in ONGC came down to
84.11 per cent.
In the year 2002-03, after taking over MRPL from the A V Birla Group,
ONGC diversified into the downstream sector. ONGC will soon be entering into
the retailing business. ONGC has also entered the global field through its
subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major investments in
Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its
investment in Vietnam.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

ONGC HIGH, HIGHER, HIGHEST

JUNE 25, 2007 ONGC Board in its meeting held has approved annual financial
results for FY07,which signify various highs which are as follows:

 Highest ever turnover: Rs 56904 crore upto 18%)


 Highest ever profits: Rs 15643 crore (upto 8%)

 Highest ever dividends: 310%. Rs 6631 crore
 Highest ever sales volume : Rs 56904 crore
 A total of 22 discoveries were made which include 9 new prospects (3 deep
waters, 1 shallow water, 5 Onshore) and 13 new pools.
 First ultra- deep water gas discovery of the country established in KG
offshore in well UD-1 in NELP Block.
 ONGC Videsh Ltd, the 100% owned subsidiary of ONGC, recorded the
highest ever production of 7.95 MTOE of OIL +OIL Equivalent GAS in
2006-2007
 With addition of 9 more properties in FY07, OVL now has 26 projects
spread in countries.
 OVL’s ties in brazil further strengthened with signing of an agreement
between ONGC and Brazilian OIL major Petribras to swap interests in
offshore blocks in India and brazil..
 ONGC became the first Central PSU to get two of its Clean Development
Mechanism (CDM) projects registered by the United Nations Framework
convention For Climate Change (UNFCCC).

STRATEGIC/BUSINESS ALLIANCES OF ONGC :


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Oil and Natural Gas Corporation Ltd. (ONGC) is engaged in E&P activities
both in Onshore and Offshore. The Corporation is now venturing out to new areas
i.e. deepwater exploration and drilling, exploration in frontier basins, marginal
field development, optimization of field development plan field recovery and other
allied areas of service sector

J0INT VENTURE GROUP


ONGC has recognized the need to expand its business through profitable
ventures related to petroleum and energy sectors by entering into joint ventures
with other Indian and foreign companies. ONGC-Joint venture group (ONGC-
JVG) has been formed to give impetus to joint venture activities in areas other than
E&P.

Excom Group
The EXPLORATION CONTRACT MONITORING (EXCOM) Group is the
exclusive business face of ONGC for jointly operated oil & gas exploration and
production ventures within India. It is the nodal agency of ONGC for single
window E&P business communication with companies and the government.

ONGC Videsh Ltd.


The company is having wholly owned subsidiary i.e. ONGC VIDESH
LIMITED looking after the operations abroad. Presently it is operating in
collaboration with British petroleum of U.K and state oil of Norway in offshore in
Vietnam under a petroleum sharing contract with M/s Petro Vietnam, Vietnam.
During exploration stage gas has been found in two structures and presence
of gas has been confirmed on drilling of appraisal wells. Commercialization and
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

marketing study for exploration of gas field and the techno economic are in
progress. ONGC Videsh Limited has signed an MOU with M/s Enserch India Inc
Texas USA in June, 1995 for formation of a joint venture company of a joint
venture company in India in the exploration and development of Hydrocarbon
resources to their mutual benefit. ONGC Videsh has accepted an offer from British
Gas to farm out agreement in north part of Gulf of Suez and signed a farm out
agreement with British Gas in June 1995. Similarly they have signed an agreement
with other private companies of many countries like Tunisia.

ONGC’s wholly owned subsidiary, ONGC Videsh Ltd, has made significant
investments in many parts of the world. The gas property in Vietnam (OVL’s
participating interest 45%) went into commercial production in December 2002,
leading to OVL’s first revenue from hydrocarbons. In March 2003, OVL concluded
the acquisition of 25% equity in the Greater Nile project in Sudan with an
investment of Rs. 3,430 Crore. This investment entitles OVL to 3.00 MMT of
crude oil per year, which is valued at Rs. 2,500 crore at current prices.

OVL opened its first overseas subsidiary, Sakhalin India Inc., in US for
managing its operations in Sakhalin Oil field in Russia. Further, ONGC Nile-
Ganga BV, a wholly owned subsidiary, was incorporated in The Netherlands to
manage the Sudan property. OVL is also pursuing exploration of oil and gas in
Russia, Iran, Iraq, Libya Myanmar and other countries.
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ONGC VISION, MISSION AND OBJECTIVE

“To be a world class Oil and Natural Gas Company in energy business
with dominant Indian leadership and global presence.”

MISSION
 World –class dedication to excellence by average competitive advantage in
R$ D and technology with involved people.
 Implies high standards of business ethics and organizational values.
 Abiding commitment to health , safety and environment to which quality of
commentary life.
 Foster a culture of trust and mutual concern to make working as stimulating
and challenging experience for oil people.
 Strive for customer delight through quality products and services.

OBJECTIVES
 Components optimize production of hydrocarbons.
 Self-reliance in technology.
 Promoting indigenous effort in Oil and Gas related equipments , Material
and Services.
 Assist in conversion of hydrocarbons more efficient use of energy and
development of alternate sources of energy.
 Develop scientifically oriented and technically component human resource.
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CORPORATE RANKING OF ONGC

 ONGC 335nd in Fortune Global 500 list(July 2009)


 ONGC clinches the top E$P company rank in 2006 PLatts Top Global
Energy Companies list (September 2006)
 ONGC ranked 20st in PFC Energy 50 list.(January 2009)
 ONGC leads Indian companies in Forbes 2000 list (152 rank, 2009)
 ONGC in Fortune list of Worlds Most Admired Companies 2007
 ONGC the Biggest Wealth Creator (January 2000)
 The Bw real 500 ranking: ONGC ranked 3rd (march 2006)
 ONGC ranked 158th in FT Global 500 (march 2006)
 ONGC India’s most respected PSU in PSU category in the 2006 Business
world Magazine.(June ONGC tops the list of super 100 list (Business India ,
dec 2006)
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

ACHIEVEMENTS OF ONGC

 ONGC: India's First National Integrated Oil & Gas Corporate:


With the acquisition of the equity held by the Aditya Birla Group in
Mangalore Refineries and Petrochemicals Limited (MRPL), ONGC has
become the first Indian integrated oil and gas corporate.
 Energy Packed Performance:
Oil and Natural Gas Company (ONGC) is the largest producer of crude oil
in the country. It accounts for nearly four fifths of the country's output, with
a significant part of this production coming from the fields of Bombay High.
It has also acquired rights for several new blocks offered under the new
exploration and licensing policy (NELP).
 CEO Business Leader of the Year Award:
ONGC's C&MD, Mr. Subir Raha, was awarded the CEO Business Leader of
the Year Award at the India Leadership Summit in Mumbai on Nov 21, 2002.
 ONGC bags three Greentech Foundation Awards :
ONGC has bagged three Greentech Excellence awards for maintaining the
highest standards of safety at its installations and operational areas.
 ONGC bags NPMP award in creativity and excellence :
This was the second consecutive year and the third year in all, that ONGC
has been awarded the NPMP recognition for the best financially managed
public corporation in the petroleum industry.
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ORGANIZATION CHART
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HUMAN RESOURCE IN ONGC

HR VISION

To attain organizational excellence by developing and inspiring the true


potential of company’s human capital and providing opportunities for
growth, well being and enrichment.

HR MISSION
To create a value and knowledge based organization by inculcating a culture
of learning, innovation and team working and aligning business priorities with
aspiration of employees leading to a development of an empowered, responsive
and competent human capital.

HR OBJECTIVES
 To develop and sustain core values.
 To develop business leaders for tomorrow.
 To provide job contentment through empowerment, accountability and
responsibility.
To build and upgrade competencies through virtual learning,
Opportunities for growth and providing challenges in the job.
 To foster a climate of creativity, innovation and enthusiasm.
 To enhance the quality of life of employees and their families.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

SWOT ANALYSIS
Strength

 ONGC is the only company in India who is involved in offshore construction


activities relates to oil and gas projects for more than two decades.
 It has rich experience over the last 25 years in its execution and possesses abundant
data associated with these projects.
 ONGC contributes 90% of Indian crude oil production.
 The organization possesses highly skilled manpower at a low cost.
 Thee operational cost of ONGC is among the lowest in the world and its reserve level
is equivalent to 23 years of production.
 ONGC can boost of installing 28 processor platforms, 132 well platforms and more
than 4,000-km submarine pipelines.
 Another area of strength of ONGC is its commitment and quality of maintenance
management.

Weaknesses
 The purchase procedure of ONGC does not lead to feasible and past purchase
decisions.
 It is highly regulated by the government therefore the functioning of the organisation,
as a commercial organisation is restricted or constraint.
 Behaviors of the certain reservoirs in Mumbai have not been in line with the
expectation, which would enroll investment in the future.
 There has been no major discovery in the past.
 There is lower realization per barren as compared to international prices.
Opportunities
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 The number of sedimentary basins in India is about 26, out of which 17 have been
discovered. Moreover, production has been commenced in 6 of them. Hence, there is
tremendous opportunity for growth in the future.
 Oil exploration and development has been open to the private sector, hence ONGC
can overcome resource crunch by setting up joint venture with foreign companies.
 ONGC has already obtained marketing rights for transportation fuels, this opens up
the opportunity to augment ONGC’s profitability through value addition consumer
and retail marketing.
 ONGC is poised to enter downstream refining in a big way. After the mini refineries in
Tatipaka, it has signed a share purchase agreement to acquire 37.4% equity held by
M/S Aditya Birla Group in Mangalore Refineries and Petrochemical Limited (MRPL).
This is in the line with the global integrated business model in the energy industry, to
insulate the financial from the volatility inherent in sectoral activities.
 On 31.03.02, Government o India ended the Administered Price Mechanism (APM)
on crude and petroleum products. ONGC is now entitled to Market Determined
(MDP) for crude as well as value added products. ONGC has been playing
internationally benchmark priced for goods and services, now ONGC is entitled to
internationally benchmark price for its output, except for natural gas.

Threats
 The unemployed Basins are of acreage and would increase ONGC’s funding as
development cost.
 With the opening of the oil exploration and development sector to the private sector,
there has been an increase in the international competitiveness.
 International crude oil prices are highly volatile and any sharp down turn would affect
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

the profitability of the organization.


 Security of the personnel and property is the major concern t ONGC, as in Oct. 2001 a
massive fire broke out in Gujarat field because of tampering of a well held by
miscreants engaged in pilferage, three miscreants perished in the fire and the cost of
property loss exceed Rs. 5 Crore. The cost of insurance has increased, pilferage losses
are been sustained and operation has been restricted in sensitive areas.
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ONGC INFORMATION MAP


EFFECTIVENESS OF TRAINING AND DEVELOPMENT

THE OBJECTIVE OF STUDY

Following are main reasons or objectives of studying training and development


programs at ONGC :
 Assessment of the level of satisfaction with the training imparted
 Whether individual and organizational goals are met with the training
programmes.
 If the nature of training meets the organizational requirements.
 Scope of improvement in the process.
 How Training & Development programmes motivate and improve efficiency
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TRAINING AND DEVELOPMENT

Training and Development refers to the imparting of specific skills, ability and
Knowledge to an employee. A formal definition of training and development is

Training and development is an attempt to improve current or future employee


performance by increasing an employee’s ability to perform through learning,
usually by changing the employee attitude or increasing his or her skills and
knowledge. The need of training and development is determined by employee’s
performance deficiency, computed as follows:

TRAINING & DEVELOPMENT NEED = STANDARD PERFORMANCE -


ACTUAL PERFORMANCE.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

INPUTS IN TRAINING AND DEVELOPMENT

Any training and development program contains 3 basic inpusts namely, SKILLS,
EDUCATION, DEVELOPMENT along with secondary inputs like ETHICS,
ATTITUDE CHANGE, DECISSION MAKING AND PROBLEM SOLVING
SKILLS.

SKILLS: Training as stated earlier, is imparting skills to employees. A worker


needs skills to operate machines, and use other equipments with least damage and
scrape. This is a basic skill without which the operator will not be able to function.
There is also need for motor skills. Motor skills (or psychomotor skills) refer to
performance of specific activity. These skills involve learning to move various
parts of one’s body in response to certain external and internal stimuli. Common
motor skills are needed for all employees- from a new entry to a general manager.
Employees, particularly supervisors and executives, need interpersonal skills
popularly known as the people skills. Interpersonal skills are needed to understand
oneself and others better, and act accordingly. Examples of interpersonal skills
include listening, persuading, and showing an understanding of others’ feelings.

EDUCATION: The purpose of education is to teach theoretical concepts and


develop a sense of reasoning and judgement. Any training and development
program must contain an element of education is well understood by HR
specialists. Any such program has university professors as resource person to
enlighten participants about theoretical knowledge of the topics proposed to be
discussed. In fact, organizations depute or encourage employees to do such course.
The chief executive officers (CEO) are known to attend refresh courses conducted
by business schools.

DEVELOPMENT: Another component of training and development program is


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development which is less skill oriented but stresses on knowledge. Knowledge


about business environment, management principles and techniques, human
relations, specific industry analysis and the like is useful for better management of
a company.

An organization expects the following form its managers when they are deputed to
attend any training and development program:

1. How to make managers self-starters? How do we imbibe them with a sense


of commitment and motivation so that they become self- generating.

2. How do we make them result oriented? How do we help them see and
internalise the difference between activity and results, and betyween
efficiency and effectiveness.

3. How do we make them sensitive to the environment in which they function,


both at the workplace and outside?

4. How do we make them aware of themselves – their potential and


limitations? How do we help them see themselves as others see them and
accept this self immage.

5. How do we teach them to communicate without filters, to see and feel point
of view different from their own.

6. How do we help them understand power and thereby develop leadership


styles which inspires and motivate others.

7. How do we instill a zest l for excellence, a divine discontent , a nagging


dissatisfaction with status quo.

ETHICS: There is a need for imparting ethical orientation to a training and


EFFECTIVENESS OF TRAINING AND DEVELOPMENT

development programme.

Ethical orientation is significant for the following reasons:

1. Ethics correspond to the basic human needs.

2. Values create credibility with the public. An organization perceived by the


public to be ethically and socially concerned will be honoured and
respected.

3. Values lead management capability with employees. They provide a


common language for aligning a company’s leadership and its people.

4. Values help in better decision making. Ethical attitude help management


make better decisions which are in the interest of public, the employee,
and in the long term the company itself

5. Ethics are important because government and law cannot always protect
the society, but ethics can. Employees’ interest is better protected by an
ethically conscious management than a plethora of labor acts.

ATTITUDINAL CHANGES : Attitudes represent feelings and belifs of


individual towards others. Attitudes affect motivation, satisfaction and job
commitment. Negative attitude needs to be converted into positive attitude so that
employees feel committed to the organization, are motivated for better
performance, and derive satisfaction from their jobs and the work environment.

DECISION MAKING AND PROBLEM SOLVING SKILLS : Decision


making and problem solving skills focus on methods and techniques for making
organizational decisions and solving work-related problems. Learning related to
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

decision making and problem solving skills seeks to improve trainees’ ability to
define and structure problems, collect and analyse information, generate
alternative solutions and make an optimal decision among alternatives. Training
of this type is typically provided to potential managers, supervisors and
professionals.

To sum up, an effective training and development program should be designed


to develop the following:

 Helping employees satisfy personal goals through higher level of skills and
competencies.

 Facilitate higher contribution at present job and preparing them for the next
level of responsibility.

 Developing individuals and teems to meet the total need of the


organization.

 A good T&D program should instill clarity of purpose, the employee


should be able to understand totality of a situation and see clearly what
needs to be done and how to achieve it.

 Create business insights which can be turned into new and realistic plans.

 Develop accurate, objective assessment of what needs to be done, even in


complex and difficult situations.

 Inspire teams to support business directions, develop team capability and


respect cultural differences.

 Leadership of individuals: inspire subordinates, set high standards of


performance, hold subordinate accountable for achieving them. Build skills
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

and capabilities of subordinate.

 Adaptive influential skills, successfully influence without hierarchical


power and maintain positive relationship between colleagues.

 Self confident integrity: stand up for conviction s and values and take
difficult decisions.

 Team commitment: Work co-operatively as a member of a team and is


committed to the overall team objectives rather than own intrest.

 Learning from own failures and successes and those of others.

TRAINING INPUTS ACROSS EMPLOYEES:

OPERATIVE LEVEL :

 Specific job skills.

 Motor skills.

 Interpersonal skills.

 Attitude changes.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

LOWER-LEVEL MANAGERS :

 Motor skills.

 Interpersonal skills.

 Attitude change.

MIDDLE-LEVEL MANAGERS & TOP MANAGEMENT :

 Motor skills.

 Interpersonal skills.

 Education.

 Development.

 Ethics

 Attitude change.

 Decision making and problem solving skills.


EFFECTIVENESS OF TRAINING AND DEVELOPMENT

What we get as output after the process of imparting education and skills
in training and development program:
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

BASIC TRAINING PROCESS :

1.NEED ASSESSMENT : Needs assessment diagnoses present problems and


future challenges to be met through training and development. Organizations spend
vast sum of money (usually a percentage of turnover) on training and development.
Before committing such huge resources, organizations would do well to assess the
training need of an employee.

Need assessment occurs at two levels – group and individual. An individual needs
training when his performance falls short of standards. This inadequate
performance may be due to lack of skills and knowledge. This deficiency can easily
be mend by training and development.

Assessment of training needs must also focus on anticipated skills of an


employee. Technology changes fast and new technology demands new skills. It is
necessary that employee be trained to acquire new skills. This will help him to
progress in his career path. Training and development is essential to prepare the
employee to handle more challenging tasks.

Individuals may require new skills because of possible job transfers. Economic
forces have necessitated significant training efforts in order to assure continued
employment for many individuals.

Assessment of training need occurs at the group level too. Any change in the
organizations strategy necessitates training of groups of employees. Training can
also be used when high scrap or accident rates, low morale and motivation, or
other problems are diagnosed. Such undesirable happenings reflect poorly trained
workforce.

Although training and development is an integral part of any organization, but as


EFFECTIVENESS OF TRAINING AND DEVELOPMENT

mentioned earlier, the training and development program are a heavy investment
on the company. A huge part of organization turnover is spent on training and
developing its manpower. And turnover though is a secondary measure of a
company’s growth but it does count. Hence at the time of identifying the training
need, the organization should keep in mind that it could extract back more returns
on investment from its employees. Thus, the cost- utility of training an employee
should be kept in mind.

2. DESIGNING THE TRAINING AND DEVELOPMENT PROGRAME:


Every training and development program must address certain vital issues :

 Who participates in the programme: trainees should be selected on the


basis of self nomination, recommendation of supervisors or by the HR
department.

 Who are the trainers: training and development programe can be


conducted by:

a. Immediate supervisors.

b. Co-workers.

c. Members of personnel staff.

d. Specialist in other parts of company.

e. Outside consultants.

f. Industry associates.

g. Faculty members at university.

 Methods and training techniques: training methods are usually classified


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into 2 groups :-

a. On the job training.

b. Off the job training.

a. On the job training methods :-

 Job Instruction Training (JIT) : It is primarily to teach workers


how to do their current jobs. A trainer or supervisor or co-worker
acts as a coach.

The trainer demonstrates the job in order to give the employee a


model to copy. The trainer shows the right way to handle the job.
Next, the employee is permitted to copy the trainer’s way. Until the
trainee masters the right way to handle the job and finally the
employee does the job independently without any supervision.

 Coaching: coaching is a kind of daily training and feedback given


to employee by immediate supervisors. In coaching the supervisor
explains things and answer questions. He throws light on why
things are done the way they are, he offers a model for trainees to
copy. Conducts lots of decision making meetings with trainees,
procedures are agreed upon and trainee is given enough
opportunity to make decision and commit mistakes.

When coaching is useful:

^ When employee seeks feedback.

^ When employee expresses interest in different jobs within the


organization.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

^ When employee is facing low morale.

^ When employee needs a help with a new skill.

 Mentoring: Mentoring means grooming a junior person. In


mentoring manager acts like a friend, philosopher and guide, to a
new recruit. He provides emotional support, teachings, coaching,
and counseling.

 Job Rotation: It is movement of trainee from one job to another.


The purpose is to provide trainee with large organization
prospective and greater understanding of different functional areas
as well as, a better sense of their own carrier objectives and
interest. This training ranges from 6 months to 2 years.

 Apprenticeship training: Craftsmen such as plumber and


carpenter are trained through formal apprenticeship program. They
spend more time with experienced coach or guide.

For example: machinist, toolmakers or technicians’ etc.

 Committee Assignment: The trainees are asked to solve actual


organization problem. Trainees work together and offer solutions to
the problems. Talented employees are assigned within the
committee, which increases their analytical skills.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

b. Off The Job Training Methods :-

 Lecture Method: It is a direct method and can be used for large


group of trainees. The cost and time involved in this is the
minimum. It is just like a class room teaching and lecturing
method.

 Program Instruction: the training is offered without the


intervention of the trainer. The subject matter to be learned is
presented in a series of carefully in a series of carefully planned
sequential units. These units are arranged from simple to more
complex level of instructions.

Feedback in the form of correct answers is provided after each


correct answer.

 Sensitivity Training: It involves small number of trainees usually


fewer than 12 in a group. This training is also known as T-group
Training (training group) or laboratory training.

It requires people to become sensitive to other people’s feeling in


order to develop reasonable group activity. The discussion focuses on
why participants behave as they do, how they perceive others and the
feelings and emotions generated in interaction process.

Management games: Management games and business games is


another technique used at management educational level.

There are skill games to develop analytical skills,


communication games to develop bias free listening. Strategic
games to develop skills to plan, team building games, to develop
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skills for collaborative efforts.

The game involves the participation of two or more teams


depending on the situation with each team having 4 to 7
participants.

 Simulation Training: simulation method of training involves the


duplication of organizational situation in a learning environment. It
is a mockup of real things.

 ROLE PLAYING: It is used to develop inter-personal and


intra personal skills of the trainee. It involves realistic
behavior in imaginary situation. The participants play the
character of production manager, mechanical engineer, HR
manager, maintenance officer etc. Attitude change is another
result of role playing.

 VESTIBULE TRAINING: This training consists of 2 parts.


First, there is a lecture method which is conducted in
classroom. A lecture focuses on theory. Second,
there is a practical exercise based on the theoretical aspect in
the workshop which is similar to the real job.

 CASE STUDY: It appears to be an ideal method to promote


decision making ability. It helps in independent thinking.

 IN-BASKET EXCERSISE: In this technique the training is


designed around ‘incoming mails’ of a manager. A variety of
situation are presented in this exercise which would usually
be dealt by a manager in his typical working day. Various
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kinds of mails and telephone messages are presented to the


trainee to read their reaction and what do they place at their
priority list.

3. LEARNING PRINCIPLES: Training and development programs are more


likely to be effective when they incorporate the following principle of learning:

 Employee motivation.

 Recognition of individual differences.

 Practice opportunities.

 Reinforcement.

 Knowledge of results (feedback) .

 Goals.

 Schedule of learning.

 Meaning of material.

 Transfer of learning.
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4. CONDUCT OF TRAINING: A final consideration is where the training and


development program is to be conducted. The decision is based on the following
choices:

 At the job itself.

 On site but not the job – like a training room in the company.

 Off the site, such as in a university or college classroom, hotel, a resort, or a


conference center. Typically, basic skills are taught at the job, and the basic
grammar skills are taught on the site. Much of interpersonal and conceptual
skills are learnt off the site.

5.IMPLEMENTATION OF THE TRAINING PROGRAMME:

Once the training program has been designed, it needs to be implemented;


implementation is beset with certain problems. In the first place, most managers
are action- oriented and frequently say they are too busy to engage in training
efforts.

Secondly, availability of trainers is a problem. In addition to processing


communication skills, the trainers must know the company’s philosophy, its
objective, its formal and informal organizations, and the goal of the training
program. Training and Development requires a high degree of creativity than,
perhaps, any other personnel specialty.

Scheduling training around the present work is another problem. How to schedule
training without disrupting the regular work? There is also a problem of record
keeping about the performance of a trainee during his training period. This
information may be useful in evaluating the progress of training in the company.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Program implementation involves action on the following lines:

 Deciding the location and organizing training and other facilities.

 Scheduling the training program.

 Conducting the program.

 Monitoring the progress of training.

6. EVALUATION OF THE PROGRAMME :

The last stage in the training and development process is the evaluation of result.
Since huge sum of money are spent on training and development, how far the
program has been useful must be judged. Evaluation helps in determine the results
of the training and development program. In practice, however, organizations
either overlook or lack facilities for evaluation.

The main aim of evaluating the training program is to determine if they are
accomplishing specific training objectives, i.e. correcting performance
deficiencies. Training program should be evaluated to determine their cost
effectiveness.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

TRAINING AND DEVELOPMENT AS A SOURCE OF COMPETITIVE


ADVANTAGE :
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Companies derive competitive advantage from training and development. Training


and development program help to remove performance deficiencies in employees.
This is particularly true when :

1. Deficiency is caused by lack of ability rather than lack of motivation to


perform.

2. The individual involved has the aptitude and motivation need to learn to do
the job better.

3. Supervisor and peers are supportive of the desired behavior.

There is greater stability, flexibility, and capacity of growth in the


organization. Training contributes to employee stability in least two ways:
Employee becomes efficient after undergoing training.

Efficient employee contributes in the growth of the organization.

Accidents, scrap, and damage to machinery and equipment can be avoided


or minimized through training. Even dissatisfaction, complaints,
absenteeism and turnover can be reduced if employees are trained well.

Future needs of employee will be met through training and development program.
Organization takes fresh diploma holders or graduates as apprentices or
management trainee. They are absorbed after course completion. Training serves as
an effective source of recruitment. Training is an investment in HR with a
promise of better returns in future.

THE BENEFITS OF EMPLOYEE TRAINING :

HOW TRAINING BENEFITS THE ORGANIZATION :


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 Leads to improved profitability and more positive attitude towards profit


orientation.

 Improve job knowledge and skill at all levels of the organization.

 Helps people identify with organizational goals

 Helps create better corporate image.

 Fosters authenticity, openness and trust

 Improve relationship between boss and subordinate.

 Organization gets more effective decision- making and problem solving


skills.

 Creates an appropriate climate for growth, communication.

 Helps in succession planning.

 Helps keep the cost down in many areas, e.g. Production, personnel,
administration, etc.

 Helps employee adjust to change

 Continuous training is a sign of continuous improvement. The concept of


learning organizations is wide spread. Organization in today’s scenario
needs people who are ready to learn more skills and keep themselves
updated.

BENEFIT OF EMPLOYEE TRAINING TO THE ORGANIZATION:


EFFECTIVENESS OF TRAINING AND DEVELOPMENT
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

HOW TRAINING BENEFITS INDIVIDUALS :

 Helps the individual in making better decisions and effective problem


solving.

 Aids in encouraging and achieving self-development, and self-confidence.


EFFECTIVENESS OF TRAINING AND DEVELOPMENT

 Increase job satisfaction and recognition.

 Helps person develop speaking and listning skills, writing skills,


interpersonal and intra-personal skills.

 Helps eliminating fear in attempting new tasks.

 Provides information for improving leadership, knowledge, communication


skills and attitudes.

 Helps plot a carrier graph.

“Happy Wokers are productive Workers”

This statement is false. The myth that “Happy workers productive workers”
developed in the 1930s and 1940, largely as a result of findings drawn by
researchers conducting the Hawthorne studies at Western Electric. Based on those
conclusion, manager began efforts to make their employees happier by such
practices as engaging in laissez-faire leadership, improving working conditions,
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

expanding health and family benefits such as insurance and college tuitions
reimbursement, providing company picnics and other informal get-togethers, and
offering counseling services for employees.

But these paternalistic practices were based on questionable findings. A careful


review of the research indicates that, if there is a positive relationship between
happiness (i.e. satisfaction) and productivity, the correlations are low in the vicinity
of +0.14. The means that no more than 2 percent of the variance in output can be
accounted for by employee satisfaction.

Based on the evidence, a more accurate conclusion is actually the reverse-


productive workers are likely to be happy workers. That is productivity leads to
satisfaction rather than the other way around. If you do a good job, you
intrinsically feel good about it. Additionally, assuming that the organization
rewards productivity, your higher productivity should increase verbal
reorganization, your pay level and probabilities for promotion. These rewards in
turn increase your level of satisfaction with the job.

TRAINING SYSTEMS IN ONGC

TRAINING NEED IDENTIFICATION

In achievement of overall goals of performance and improvement, training must


contribute to the enhancement of professional knowledge, understanding and skill both at
individual and collective levels. It should also equip the all employees of an organization for
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

appropriate response to the emerging challenges. The main emphasis of the training should be on
‘doing rather than knowing only’. The training must also achieve its energy between the
improvement of individual’s competencies and promotion of organizational objectives. Training
must also help to build up high standards of integrity, character and probity in professional life.

While designing training need identification process, efforts should be made to involve
the individuals and the experts in the line. It must be a comprehensive exercise to cover all
relevant technological, technical, managerial and other aspects of the organizations working so
that a complete picture of organizational, as well as, individual requirements can emerge. The
training institutes will involve the line and functional managers and conduct surveys to identify
individual training needs, as well as, organizational needs. The training needs may emerge from
following:

 Environmental scanning and strategic requirements


 Recommendations from senior executives
 Suggestions made by executives of ONGC
 New recruitment and appointment in the organization
 New promotions
 Individual perception surveys
 Performance appraisal system
 Mentoring and counseling system
 Emerging technological requirements
 Analysis of training programmed conducted in past
 External customer requirements
 Statutory and regulatory/obligatory requirements

Based on the above, the training institutes design their training need identification
process and develop annual training calendars to meet the training need requirements of the
organization. In case, the numeral of participants is very less in some specific areas, the training
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

needs of the individual can be met through sponsoring in the training programmers of external
agencies.

MEETING IDENTIFIED TRAINING NEEDS

After identification of training needs by the institutes, the efforts are made to prepare annual
training calendars and organize training programmers by them. as per existing training policy of
the organization to train each individual once in three years to ensure updating of their
knowledge and skill with changing environment and ultimately reaching the level of once in two
years for minimum five training days. The existing manpower strength of the organization is
around 40,000 and the training institute has drawn up their five year training plans to train about
18,000 employees per year to meet these training needs of the organization. The training plans of
training institutes are given under HRD plan for 2001-02 and 2005-06.

In ONGC, there are following training institutes which are engaged in meeting, training and
development needs of the vast human resource of the organization by designing and organizing
training programs focused on organizational needs:

 Regional training institute (RTI), Chennai


 Staff Training institute (STI) Rajahmundary and Baroda.
 Institute of management development (ONGC ACADEMY), Dehradun
 Institute of petroleum safety and environments management (IPSEM), GOA.
 Institute of riling technology (IDT) Dehradun
 Institute of oil 7 gas production technology (Simulator Training)
 Other Training Centers at various plants and locations.

Each training institute has its well defined area of training activities accordingly they plan
and conduct the training programmers to meet the specific requirement of the organization.

TRAINING STRATEGIES
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

In ONGC the planned development of human resource is given top priority. The training has to
be organized for entire human resource covering all levels from the lowest class IV to the highest
board level. Special attention is to be paid at the lower and middle level who is the real
performer at various field installations. By nature of their job responsibilities and their position
in the organization, the executives and non-executives have to discharge different type of jobs
which demand upon them different nature of knowledge, skill, attitudes and Value system. Hence
the separate training strategies for the executives and the non-executives have been designed.

TRAINING STRATEGY FOR THE EXECUTIVES

Training and development activities are seen in relation with the carrier progression of the
individual in the organization. Therefore, the following training interventions at various level of
career path of the executives are proposed.

MANDATORY TRAINING FOR EXECUTIVES

E-0 Level - Supervisory Development Programme - One Week


Graduate Trainees - Graduate Training Programme - 52 Weeks
E2-E3 Level-Jr. Management Training Programme - Two Weeks
E4-E5 Level- Middle Management Training Programme - Two Weeks
E6-E7 Level- Sr. Management Training Programme - Two Weeks
E7 & Above Level-Adv, Management Training Programs - Five Weeks

These training programmes are mandatory in nature and efforts will be made to impart these
training to each individual throughout their career progression in the organization. The
nomination will be made by the training institutes in these programmes and the line managers
will ensure their participations of the individual working under their control to ensure
development and prepare them to discharge their responsibilities deficiently. The training
institutes will maintain HRD data base to facilities efficiently. The training institutes will
maintain HRD data base to facilitate nomination process and will ensure participation of each
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

employee by designing and counting sufficient number of training programmes. The appropriate
system is being designed as part pf project SHRAMIK to identify and nominate individual for
mandatory training. To ensure participation and development of individual in mandatory training
effective monitoring will be done through this system.

NEED BASED TRAINING

Need based training will be given to meet the individual, as well as, organizational
requirements. The nominations for such training will be forwarded to the training will be
forwarded to the training institutes by the controlling officers. This type of training needs will be
most by the training institutes either by organization training programmer if sufficient number of
participants is available or by sponsoring in the training progaammes of external training
agencies if the number of nomination is small. The need based training interventions for the
executives will be as under.

E2-E4 LEVEL

Refresher training progammes in line function at an interval of 3-4 years.


Cross functional progammes in relevant areas.

E5-E7 LEVEL

a) Multi-disciplinary perspectives building progammes.


b) Advanced technical training progammes in line function.
c) Training Abroad in line function.

The details of various types of training modules for the executives are covered under the
heading training by institute of management development, institute of drilling technology,
institute of petroleum, safety and environment management etc.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

TRAINING INTERVENTION STRATEGY FOR NON-EXECUTIVES

Training and development activates for the non-executives are directly linked to the role
to be performed by the individual and his own development. the main stress is given on bridging
the skill and knowledge gap arising out of changes in the roles due to career growth and
development activities for non-executives on focused and targeted areas in systematic and
planned manner on Operating Manual-RTI-Manual has been developed and training activates of
regional training institutes which are basically meant for their development are being managed
accordingly. The various training interventions both mandatory, as well as, need based is planned
as under:

1. Induction training programmes at the time of recruitment


2. Orientation training programmes at the time of promotion
3. Supervisory development programmes at supervisor level/top of class III.
4. Statutory/certification courses (like mines vocational training, semi, reservation
policy etc.)

Efforts will be made to impart these training to each and every employee by the institutes.
The newly recruited non-executives will join at the regional training institute for induction
training and other mandatory training will be designed and imparted by regional training
institutes and staff training institutes by inviting nominations to fulfill the training need
requirements of the non-executives. The regional training institutes will operate as per the RTI
manual and accomplish their training responsibilities to meet the requirements of respective
regional business units.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q1 Are you satisfied with ONGC’s assessment and analysis of your training
need?

Q2 Does the training program help you to completely bridge the gap between
your actual and expected performance?
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q3 Does the training help you to strike a balance between your organizational
and personal goals?

Q4 Do you get chances to modify your working techniques and practically apply
what you have learned during your training period?
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q5 Do you feel, the organization carefully examines all KSA requirements prior
to formulating training programmes?

Q6 Induction training is well-planned and it is of sufficient duration.


EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q7 Induction training is an excellent opportunity for newly joined recruits to


know about the organization

Q8 Senior management takesinterest and spends time with the new staff during
the various training programmes .
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q9 The training at ONGC meets the current technological and skill


requirements.

Q10 There is adequate emphasis on developing managerial capabilities of the


management staff through training.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q11 Human relations competencies are adequately developed in ONGC through


training in human skills.

Q12 Training of employees is given adequate importance at the executive level.


EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q13 Training is a very important part of ONGC and employees take it very
seriously.

Q14 The trainers are efficient and skilled enough to impart knowledge about the
subject of trainee.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q15 The trainers are effective communicators and are highly compassionate.

Q16 The HR department conducts briefing and conclusion sessions for employee
concert for trainee.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q17 The training programe in ONGC is a high quality.

Q18 Employees returning from training are given adequate free time to reflect
and plan improvement for the fulfillment of ONGC objectives.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q19 Executive managers provide the rights time of climate to implement new
ideas and method acquired by their juniors during training.

Q20 Knowledge sharing is the essence of ONGC .


EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q21 Managers utilize and benefit from the training programmes .

Q22 There is a well design and widely shared training policy in the company.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

Q23 In the scale of 1to5 how important will you rate training for effective
performance?
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

SUGGESTIONS:

1. The training program should be need based rather than target based:

Each department is given a target of employees to send on training, and this target
needs to be achieved. In the maze of achieving targets, at times more than the
required number of employees is sent on training because of which the company's
work suffers.

At times certain people who are working on an important assignment are not
sent on training, as the assignment could be adversely affected, thus at times
employees who needs the training the most gets deprived of because of the
importance and urgency of assignment they are currently working on.

2. System of feedback should be periodical: at the time of interview, it was


revealed that the feedback of the training the trainee has attended was taken right
after the training gets over, which is not a very good time as the trainee did not get
any time to reflect upon the training program and assess how the training has
helped him groom or acquire essential skills that he was lacking. The ideal
feedback system should be periodical, and the first feedback should be taken at
least 3 days after the training gets over.

3. Review the training program of ONGC : As we all know that ONGC is not just
a service delivering company that can do away with very little technological
advancements hence imparting minimal training in technical and engineering area.
ONGC is dealing with the exploration and production of one of the most important
product, crude oil and natural gasses. Any wrong predictions and measures taken in
this area could cost the company a fortune and have adverse effect on the economy.
During the time of unstructured interview it was found that Exploration, Drilling
and Production, the area that requires massive resources in terms of manpower,
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

time and money requires more attention for developing them technically and
behaviorally. There is a lot of scope for improvement in this area starting with
redesigning the training and development program. The Exploration, Drilling and
Production employees need more frequent training and needs to be trained on the
advanced technology and modus operandi relating to this field.
EFFECTIVENESS OF TRAINING AND DEVELOPMENT

LIMITATIONS OF STUDY

 Given the time constraints, I was unable to conduct the study the way I want
to.

 As per the questionnaire, I was unable to cover the entire employee. My


reach is limited to Tel Bhawan, Dehradun