skill development program
skill development program
It gives me tremendous pleasure in bringing out this project report titled ‘Influence of
Training & Development on employee performance at Tata Elxsi ‘taken up during
fourth semester of Master of Business Administration course.
I would also like to thank Mr. Anoop Mithran, Associate Manager, L&D team and
other employees of Tata Elxsi for their kind cooperation, guidance and support which
lead me to right direction of my research.
Finally, I would like to thank my parents, friends and all others for co-operating with
me in this work during my study and making this a successful one.
CONTENTS
ACKNOWLEDGEMENT
LIST OF TABLES
LIST OF FIGURES
CHAPTER I – INTRODUCTION 1
APPENDIX
BIBLIOGRAPHY
CHAPTER 1
INTRODUCTION
1
1.1 Background of the study
Tata Elxsi is a company, which provides training to its employees on a regular basis.
Quarterly training requirements are tracked and from which monthly training calendars are
scheduled and the training takes place accordingly. Being a company that is engaged in the
training programs on a regular basis it very important to know the effectiveness of the
trainings provided and its effect on the business.
Trainings are always referred to as the cost generating hubs not considering the fact
that it has a positive impact on the future of the business. Only if the company has an
idea on how the trainings provided impacts the business the company would be able
to take better decisions regarding the future. With this regard, the company aims to
know the effectiveness of the trainings provided and the behavioural impact the
training creates on the employees. This will help the company to take wise decisions
with regards to the trainings provided in the future.
Development
It involved training activities aimed at bringing an organization up to another threshold of
performance, aimed at performing some job or a new role in the future (McNamara, 2008).
1
Employee Performance
Used as one that involved the achievement of specific set tasks measured against
identified goals. It is manifested in improvement in production and highly motivated
workers (Herbert, John & Lee, 2000).
BASIS FOR
COMPARISON TRAINING DEVELOPMENT
2
Aim Specific job related Conceptual and general
knowledge
A formal definition of training and development is:- “It is any attempt to improve
current or future employee performance by increasing an employee’s ability to
perform through learning, usually by changing the employee’s attitude or increasing
his skills and knowledge.”
Training is an organised activity for increasing the knowledge and skills of people for
a definite purpose. It involves systematic procedure for transferring technical know-
how to employees so as to increase their knowledge and skills for doing specific jobs
with proficiency.
According to Edwin B. Flippo, “Training is the act of increasing the knowledge And
skills of an employee for doing a particular job.”
Training involves the development of skills that are usually necessary to perform a
specific job. Its purpose is to achieve a change in the behavior of those trained and to
enable them to do their jobs better. It makes newly appointed workers fully
productive in the minimum of time. It is equally important for the old employees due
to frequent changes in technology.
3
Training is important not only from the point of view of organization ; but also for
the employees. Training is valuable to the employees because it will give them greater job
security and opportunity for advancement. The need of training arises in an enterprise due
to following reasons: -
• Training objectives are formed keeping in view company’s goals and objectives.
• To prepare the employee [both new and old] to meet the present as well as changing
requirements of job and organization.
• To impart to the new entrants the basic knowledge and skill needed for the
performance of a definite job.
• To assist employees to function more effectively in their present positions by
exposing them to latest concepts, information and techniques and developing the
skill sets that may need further.
• To develop the potentialities of people for the next level of job.
• To ensure smooth and efficient working of department.
4
• To bridge the gap between “existing performance ability” and “desired
performance”.
• To improve organizational climate since an endless chain of positive reactions can
result from a well-planned training programme.
• TEAM SPIRIT: -Training and development helps in inculcating the sense of team-
work, team spirit, and inter-team collaborations.
5
1.1.5 TYPES OF TRAINING
• JOB TRAINING: -Job training relates to specific job which workers has to handle.
It gives information about machines, process of production, instructions to be
followed, methods to
be used and so on. It develops skills and confidence among the workers and enables
them to perform the job efficiently. It is the most common of formal in- plant training
programmes. It helps in creating interest of the employees in their jobs.
6
enterprises for gaining practical work experience and medical students are sent to
hospitals to get practical knowledge. The period of such training varies from six
months to two years.
• REFRESHER TRAINING: -As the name implies, the refresher training is meant
for the old employees of the enterprise. The basic purpose of this training is to
acquaint the existing work-force with the latest methods of performing their jobs
and improve their efficiency further. In the words of Dale Yoder, “Retraining
programmes are designed to avoid personnel obsolescence.” The skills with the
existing employees become obsolete because of technological changes and of the
human tendency to forget.
The various methods of training may be classified into the following categories:
On-the-job training
Vestibule training
Off-the-job training
7
ON-THE-JOB TRAINING: -On-the-job training is considered to be the most
effective method of training the operative personnel. Under this method, the worker
is given training at the work place by his immediate supervisor. In other words, the
worker learns in the actual work environment. It is based on the principle of “learning
by doing”.
COACHING: -Under this method, the supervisor imparts job knowledge and skills to
his subordinate. The emphasis in coaching the subordinate is on learning by doing.
This method is very effective if the superior has sufficient time to provide coaching to
his subordinates.
allowed to stay on a job for sufficient period so that he may acquire the full
knowledge of the job.
8
JOB ROTATION:-Job rotation is used by many firms to develop all-round workers.
The employees learn new skills and gain experience in handling different kinds of
jobs. They also come to know interrelationship between different jobs. It is also used
to place workers on the right jobs and prepare them to handle other jobs in case of
need.
9
CONFERENCE TRAINING: -A conference is a group meeting conducted According
to an organised plan in which the members seek to develop Knowledge and
understanding by oral participation. It is an effective training device for persons in
the positions of both conference member and conference leader. As a member, a
person can learn from others by comparing his opinions with those of others. He
learns to respect the viewpoints of others and also realizes that there is more than one
workable approach to any problem.
Tata Elxsi is a firm that provides the training on a regular basis. There are two types
of training happening in the company i.e., technical and soft skills. The company has
different types of requirements arising like, project specific, adhoc requirements,
appraisal etc. So, the company needs to know how the training impacts the
employees, how far the training is able to influence the behaviour of the employees,
only if this is measured the company the company can take
corrective and preventive actions if necessary. This study aimed at
identifying whether the training offered was effective in influencing employee
performance in Tata elxsi.
10
The study is of great importance to a company like Tata Elxsi because it improves the
future scope of the decision making regarding the trainings. The company can invest
on the right training at the right time and also can ensure that the employees are
enjoying the full benefits of the trainings provided to them. This report is useful to
Learning & Development team to understand whether the training influence the
performance of the employees or not.
11
CHAPTER 11
INDUSTRY PROFILE
2.1 Business process of the IT industry
IT business processes standardize all the activities of the company related to the
information technology, bringing them to an elevated state of quality and excellence.
With the IT business processes, the services can assure the delivery, no matter who
executes them.
The absence of clearly defined IT business processes increases the chances for errors
in the processes of the company. As a result, in a future replacement of employees, all
the structure would be compromised. In contrast, the presence of an IT governance
with well-modelled processes allows that any employee of the area attends to the
projects in a satisfactory way, even in critical and emergency situations. It works like
a business continuity plan.
COBIT stands for Control Objectives for Information and related Technology. It is a
model guide that compiles a series of best practices related to the IT business
process management. It was developed as a framework, as it is independent of the
platforms adopted by the company, as well from the line of business itself and the
relevance IT has on the productive chain.
Kept by the ISACA – Information Systems Audit Control Association – the COBIT
disposes of a series of resources that serve as parameters to the business process
management. Also, to optimize the investments in IT, it provides valuable data to
measure results through Key Performance Indicators or Key Success Factors, for
example.
The COBIT structure is divided into four parts, called domains. They are:
12
• Planning and Organization
• Implementing (Execution)
• Deliver and Support
• the Architecture of Information Monitor and Evaluation
The IT industry market experiences boom and bust economic cycles. A boom and
bust cycles refer to the rapid increase in prices, followed by a period of falling
computer prices. This has occurred on numerous occasions in the IT Industry market,
13
most notably during and after Lawson boom of the late 80’s. (In the Lawson boom
the world economy grew very swiftly, but this development proved to be indefensible
leading to price rises and later a recession in 1991.) The IT market is often
unpredictable because of various factors like limited supply, changing technology,
buyers take out large mortgage to get on property ladder, instability in mortgage
lending, boom and bust in economic cycle, speculators, poor memories. The IT
market has an influence over wider economy.
The global sourcing market in India continues to grow at a higher pace compared to
the IT- BPM industry. India is the leading sourcing destination across the world,
accounting for approximately 55 per cent market share of the US$ 185-190 billion
global services sourcing business in 2017-18. Indian IT & ITeS companies have set
up over 1,000 global delivery centres in about 80 countries across the world.
India has become the digital capabilities hub of the world with around 75 per cent of
global digital talent present in the country.
Market Size
The IT-BPM sector in India stood at US$177 billion in 2019 witnessing a growth of
6.1 per cent year-on-year and is estimated that the size of the industry will grow to
US$ 350 billion by
2025. India’s IT & IteS industry grew to US$ 181 billion in 2018-19. Exports from
the industry increased to US$ 137 billion in FY19 while domestic revenues
(including hardware) advanced to US$ 44 billion. IT industry employees 4.1 million
people as of FY19.Spending on information technology in India is expected to reach
US$ 90 billion in 2019.
Revenue from digital segment is expected to comprise 38 per cent of the forecasted
US$ 350 billion industry revenue by 2025. Indian IT’s core competencies and
strengths have attracted significant investments from major countries. The computer
software and hardware sector in India attracted cumulative Foreign Direct Investment
(FDI) inflows worth US$ 43.58 billion between April 2000 and December 2019 and
ranks second in inflow of FDI, as per data released by the Department for Promotion
of Industry and Internal Trade (DPIIT).
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are
diversifying their offerings and showcasing leading ideas in blockchain, artificial
intelligence to clients using innovation hubs, research and development centres, in
order to create differentiated offerings.
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India is the topmost offshoring destination for IT companies across the world. Having
proven its capabilities in delivering both on-shore and off-shore services to global
clients, emerging technologies now offer an entire new gamut of opportunities for top
IT firms in India. Export revenue of the industry is expected to grow 7-9 per cent
year-on-year to US$ 135-137 billion in FY19. The industry is expected to grow to
US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out
of the total revenue. Being one of the largest offshoring destinations for different IT
companies across the world, the business process management market in India is of
considerable importance. The information technology/business process management
(IT-BPM) sector had contributed a share of around eight percent to the GDP of the
country in 2019. BPM is more like a discipline than a process that incorporates
methods to improve, analyse, automate and improve business processes.
However, the paradigm has changed dramatically. The Indian IT industry is facing
stiff competition from the outsourcing companies based in different parts of the world
— China, Taiwan, Philippines, Eastern Europe and Latin America. There are
tremendous emphasis on productivity, value additions, quality, customer experience,
and effective communications, meeting the datelines, domain knowledge and agility.
The technologies are moving rapidly from traditional Java, .Net and Mainframe, to
Analytics, Big Data, Artificial Intelligence and Robotics. Today a successful IT
professional will be measured by his ability to adopt new technologies, not the
number of years of experience.
The recent layoffs in some large companies in fact are symptoms of these profound
changes. The layoff recently announced by a number of large IT companies will be
the norms, rather than exceptions. IT companies (big and small) are facing
tremendous pressure on cost, productivity and ROI.
15
They will have a significant group of employees in their payrolls, who can’t be
trained to new business paradigms. Thus, they will be forced to lay off a large group
of employees who will not be able to adapt to new business requirements.
Competition will be disruptive from better technology. 3 big worried for Indian IT
companies are:
Cloud based platforms. What if SaaS takes off in large enterprises and obviates need
for large transformation or support
Direct competition is a term that refers to the companies or publishers who sell or
market the same products as your business. Your customers will often evaluate both
you and your direct competitors before making a purchase decision or converting.
Indirect competition is a term that refers to the companies or publishers that don’t sell
or market the same products, but are in competition with your business digitally.
They may write the same type of content as you and be competing for the same
keywords. In short, they are competing for your customers’ attention.
Top IT companies globally are driving the innovation around the world. With the
growing focus on automation and technology, there has been a consistent boom as far
as the IT sector is concerned. As per industry reports, the worldwide information
technology spending is pegged at over $4.5 trillion worldwide. Things like IOT,
cloud computing, privacy, online security etc are the IT services being served to
clients by the best software companies in the world.
The list of top IT companies includes Microsoft, IBM, Oracle followed by Accenture,
TCS, HPE, SAP & other big IT brands. Majority of the IT services happen in US and
Asia, which contribute to one-third of the overall global business worldwide. The
growth of the information technology industry in the world is pegged at 4.5-5% as
per industry experts. Because of Covid19 situation, it will have to see how to next
financial year will pan for the IT sector across the globe. The top it companies are
leading innovation in consulting, outsourcing, technology and services in the world.
16
with customers so they’ll continue working with them for years to come. The best
pricing strategy for a business is the one that aligns with their business objectives. No
tool in the marketing toolbox can either increase sales or reduce demand more
quickly than pricing strategy. Pricing strategies for IT services have traditionally
overemphasized cost-related criteria at the expense of the value of the service to the
customer. Cost based pricing strategies are focused on creating short term value for
the service provider. Conversely, value-based pricing focuses on the customer’s
perception of the value of the service, not on service costs only. The goals are focused
on setting prices that facilitate the development of customer relationships that can
create long-term value for the customer, which, in turn, enables the achievement of
the service provider’s financial and strategic objectives.
Cost-Based Pricing
1.Flat pricing.
Sometimes called “all you can eat” or “all in one” pricing, users pay a fixed price for
unlimited use of the IT service, typically without upfront fees. Cost recovery is a
2.Tiered-pricing
17
Tiered-pricing attempts to package IT services to ensure cost recovery and higher
margins by matching price levels with the user’s willingness to pay. This approach to
pricing is an attempt to link the cost of IT services to customer service level
requirements. 3.Performance-based pricing.
IBM pioneered a pricing model where license prices were based on the theoretical
throughput of the system in terms of the MIPS (Million Instructions per Second)
capability of the machine running the software. The goal for the provider is to recover
costs and ensure margins and not set prices based on perceived customer value.
Customer dislike this pricing model since the same software performing similar tasks
but running on different machines is priced differently.
4. User-based pricing. The charge is based on the number of users that utilize a
collection of IT service capabilities over a given period of time. The assumption is
usage is related to costs. The principal variations on this theme are: Per-user pricing is
set to an individual user who typically can use the product on an unlimited basis for the
term of the license. This approach typically offers one price for a specified number of
users.
5. Usage-based pricing.
Known as “pay-as-you go pricing” or “network pricing”, customers pay only for what
they actually use on a transaction basis. It is often associated with an application
service provider (ASP) model .
Value-Based Pricing
The key to value-based pricing success is the recognition that the price depends on
the customer’s value requirements rather than those of the IT service provider. Buyers
make judgments about benefits and prices, and choose those products and services
that maximize their perceived value. The goal of value-based pricing is to enable
long-term profits by capturing more value. That price should, in turn, determine the
level of development costs that the company is willing to incur and what services can
be sold given the cost and residual margin structure.
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Common value-based approaches to pricing are:
It target market segments where buyers have a high degree of price sensitivity. Price-
sensitive buyers typically have low reservation prices. Delivering benefits that are
perceived as industry standard at a price that is sufficiently low to generate increases
in sales volume creates customer value. Low-price leader (low reservation
price/competitive pricing) targets buyers with low reservation prices. This strategy
targets the mass-market buyers with reasonable features at a low price. The
competitive pricing objective recognizes that the market has reached maturity. It is a
product-line strategy that maximizes sales and profitability of complementary
products within the product line.
a. Skim-Pricing Strategies
It targets buyers that are relatively insensitive to price]. All have high search costs.
Price signalling (high search costs/segment differential pricing) is often used for
segment differential pricing of new service offerings where time is a primary factor in
the decision process. Information about price is more easily acquired than that about
quality or performance. Reference pricing (high search costs/competitive pricing) is a
variant of price signalling. Comparison with the higher-priced product highlights the
value of the moderate priced product and vice versa. Buyers have expectations for
exclusiveness and high levels of support and service.
19
evaluation process for enterprise IT services or the switching cost for changing
service providers. Cost-plus pricing (special transaction costs/ competitive pricing) is
often used by IT service providers that develop systems for the government, or other
large customers, where risks are not easily quantified, and special transaction costs
are high. Periodic discounting (low reservation price/segment differential pricing)
creates customer value for sequential classes of buyers with increasingly low
reservation prices. The initial strategy focuses on skimming the inelastic demand of
the innovator then reducing prices on a predictable basis as the market matures in
order to attract more price-sensitive customer groups. Second-market discounting
(differential pricing/ special transaction costs) is the situation in which marketers
introduce an existing product to a new market where buyers are more price-sensitive
than the primary market and have identifiable special transaction costs. For instance,
Microsoft has offered second-market discounts to buyers that are contemplating
implementations of Linux-based operating systems in the server market.
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provided tools for resolving socio—economic issues. IT industry has been
characterised by rapid advancement and widening application of Information
technology. Some of the emerging trends in the IT are discussed below.
• Cloud Computing:
Cloud computing deals with utilisation of computing services, i.e. Software and
hardware as a service over a network. This network is the Internet. It offers three
types of services, mainly infrastructure as a service [I a a s], Platform as a service [P a
a s]and Software as a service [S a a s].Advantage of cloud computing include 1]
reduction in Infrastructure cost of the company
,it promotes virtualisation that enables sever and storage device to be utilised
throughout the organisation, and it also makes maintenance of hardware and software
easier as installation is not required on each end-user’s computer .Main issues
relating to cloud computing are privacy, security, compliance, legal, abuse, it
governance etc.
• Mobile Application:
Mobile app is designed to run on Smartphone, tablets, and other mobile devices.
They are available as a download from various operating systems like Apple,
Blackberry, and Nokia etc. Some mobile apps are available free, while others are
available at download cost. The revenue collected is shared by app distributed and
app developer.
• User Interfaces:
User interface has been revolutionised since the Introduction of touch screen, which
has revolutionised way end-users interact with application. Touch screen enables the
user to directly interact with what is displayed and also removes any intermediate
hand held device like the mouse. Touch screen capability is utilised in smart phones,
tablet, information kiosks and other information appliances.
• Analytics:
21
Analytics is a process that helps in discovering the informational patterns with data.
The field of analytics is a combination of statistics, computer programming and
operations research. Analytics is expensively used for data analytics, predictive
analytics and social media analytics. Data analytics is a tool used to support decision
making process. It converts raw data into meaningful information. Predictive
Analytics is used as a tool for predicting future events based on current and historical
information. Social media analytics is a tool used by companies to understand and
accommodate customer needs.
Thus, IT has been characterised by rapid changes and each changing field of IT has
led to great advancement especially during the last decade. Its impact on business has
been growing significantly which will help business organisations to serve customer
in a better way.
Challenges:
of large computers to enable them to handle new millennium which enabled Indian
companies to gain an entry into the bellowed precincts of large western firms. Indian
IT faced this challenge successfully but soon came the bursting of the dotcom and
telecom bubbles, preceded by huge technology spending that created opportunities
for Indian companies to write lots of new code. It was followed by 9/11 which gave
sharp bow to
global business. After a period of rapid growth came the period of financial crisis of
2008 and its impact on spending of IT which continued even during the period that
followed.
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In spite of these challenges, the entrepreneur —driven Indian Software industry
evolved, from writing codes simply, to undertaking systems integration and managing
clients. IT infrastructure, initially on site and later on remotely. Simultaneously there
was growth of the use of automated tools delivering more sophisticated products and
engineering software design services and achieving higher levels of domain
knowledge by way of acquiring niche players. Next challenge was caused by cloud
computing which implied using servers located elsewhere. IT reduced the need for
firms to go in for enterprise—wide IT systems that are licensed and specially
designed for individual clients. In order to overcome this challenge Indian
software firms started acquiring niche firms with technologies that will be relevant
tomorrow. For example, Infosys acquired Panaya using automation technology. Later
on, it acquired Skava a mobile e—commerce technology firm. Similarly Wipro
acquired the Danish firm. Design it, which was offering design advisory and design
innovation services. TCS also acquired Alti a firm specialising in system integration
with S A P solutions. Thus Indian software companies acquired larger share in
business by way of optimum utilisation of staff, and adopting practices like price
discounts. During 2013—15, Infosys, Cognizant and Wipro maintained their
operative profit margins, through increasing use of automation, improving
productivity and price discounts. The extensive use of automation resulted into lower
rate of hiring which according to NASSCOM was about 15 percent to two lakhs
during 2015—16, after recording increase of six percent in the earlier year. On
account of fall in recruitment, the capabilities to carryout IT jobs also decreased.
Indian companies started retraining their staff extensively and those who could make
the best use of it got higher level of composition. Still the declining rate employment
emerged as a challenge for Indian government.
According to the H R D expert the recent job cuts in IT sector have been largely
blown out of proportion, ‘’emplacing that, as industries mature employees must be
also to keep up with delivering high quality performance. But IT firms argued that
they have reduced their head counts’’ for building a high performance based work
culture. ‘When the industry has to face challenges of many changes and use of new
technology, it becomes necessary to meet evolving standards of performance. In an
effect to encourage managers ‘’to be at the forefront of disruptions parts and changes,
in the work environment, the Infosys in June 2019, rolled out ‘Manager Quotient
[MaQ] a platform that utilised crowd sourced feedback and analytics to personalise
the learning journey. The programme uses data collected from company surveys
through the year, exit interviews and employee feedback to enable managers to know
about now they are performing on certain core competencies. The programme aims at
achieving more accountability among managers for performance and deliverables.
The company also rolled out compass, a digital platform that allows employees to
mobilise available opportunities on career path, learning and networks. It also runs
the Zero Distance Programme among early initiatives of CEO which aimed at
innovation in projects undertaken by the company.
23
2.6 Key drivers of the IT industry
For a technology company, the cost of sales is fairly low. The Cost of Sales include
These three costs account for 15-20% of the sales revenue, leaving 85% for Selling,
General and Administrative Expenses (SG&A), Marketing and Research &
Development (R&D).
Hence, it’s not surprising to see Technology companies investing handsome amounts
in Marketing and R&D. To give you a perspective, in FY11, Oracle invested $ 4.5
billion in R&D.
With $ 35.6 billion in total revenues, that’s 12%, a good investment for Oracle.
24
A technology company writes a piece of code once and sells the same code to each
and every customer. Hence, the company can make a huge profit by a good customer
acquisition strategy. More customers, more profit! Most often, we see them doing so
by hiring a sales force at 50: 50 (fixed: variable) compensation structure, with
Executives remunerated with stock options for the variable component.
Also, can be seen is the Channel Sales Operating Strategy, which phenomenally
reduces their customer acquisition cost, but increases their market outreach and sales.
This strategy proves to be beneficial to the local customers as well. Oracle India
generates 85% of its sales through its Partners.
(3) Investments
• the real estate: appreciating land and buildings, most of it will be on lease, and
For a large established technology brand, the cost of such investments will be fairly
low (as compared to its small industry participants) because they enjoy more
bargaining/negotiating leverage. Hence, their cost of sales is further relaxed (as a
percentage of total revenue).
So, when we add these factors (employee productivity and talent retention) to the
revenue, it translates to a huge economic benefit. Considering the above, it’s not
uncommon for technology organizations to earn an operating profit of 35% – 40% of
sales. This is a good margin for a large public company.
25
CHAPTER III
Review of Literature
26
3.1 An Overview of Earlier Studies
There are many scholars stating the importance of training and the behavioural
changes that the training creates on the employees
27
training and development in organization. Data is collected from the 100 members of
different organizations. And the previous researches carried out on training and
development. Training and development is important for the employees in
organization, it helps the employees to improve their skills and to give a good
performance in workplace. There is a big relation between iraining and development
with the organization rformance and the relationship is discussed in the paper.
Iftikhar Ahmad and Sirajud Din (2009), Training and development is adopted by
organizations to fill the skill gap of employees. Training evaluation must be
appropriate for the person and situation. Evaluation will not ensure effective learning
unless training is properly designed. Successful evaluation depends upon whether the
means of evaluation were built into the design of the training program before it was
implemented.
Bates and Davis (2010). Usefulness of training programme is possible only when
the trainee is able to practice the theoretical aspects learned in training programme in
actual work environment. They highlighted the use of role playing, cases, simulation,
mediated exercises and computer-based learning to provide exposure to a current and
relevant body of knowledge and real-world situations.
Cheng and Ho (2001) discuss the importance of training and its impact on job
performance: While employee performance is one of the crucial measures
emphasized by the top management. Employees are more concerned about their own
productivity and are increasingly aware of the accelerated obsolescence of knowledge
and skills in their turbulent environment. As the literature suggests, by effectively
training and developing employees, they will become more aligned for career growth-
career potential enhances personal motivation
Ellis (2008), training and development complements worker skill of the activity
undertaken and additionally motivates employees as it offers self-confidence to
employees at the duties undertaken. Managers have a crucial function to play in
making sure that the organization develops in a manner that offers a conducive
environment in which continuous development is actively endorsed. He adds that
Training and development allows an opportunity for employers to recognize their
potential and that of their teams and increase stronger relationships as well as creating
28
a high possibility to make expand the knowledge base of all employees, makes the fee
and time a worthwhile investment, (Kraiger 2009).
Adeniyi (2010) points out that training and development not only improves
performance but also improves one’s behavior. Individuals effectively mature
regarding their capacities and thus Performance and effectiveness of medical experts
is boosted more through applicable training and development which in turn
complements long-term profitability and sustainability in overall performance of
agencies. Retention of satisfactory personnel calls for investment inside the
improvement of their skills, information and competencies. The cause of doing this is
to comprehend character and ultimately organizational productivity. Worker training
and development performs an important function in improving performance and
growing productivity (Ryan, 2011) This leads to companies gaining superiority in
standing out amidst environmental pressures. Whilst a business enterprise invests
cash in developing employees they get excessive worth and also feel extra loyal to
the employer.
Under all these grounds the study conducted is of great relevance of a company like
Tata Elxsi that provides training on a regular basis. It is of great importance that the
company must know how far the trainings provided impacts its employees.
Training and Development is very important and essential in every organization due
to the following:
• Training is required to cover essential work-related skills, techniques and
knowledge. It is the process used to reduce the gap between the desired
performance and the actual performance which eventually results in increased
Productivity, quality and healthy work environment.
• Optimum Utilization of Human Resources – Training and Development helps
in optimizing the utilization of human resource that further helps the employee
to achieve the organizational goals as well as their individual goals.
• Training helps to eliminate obsolesce in work, it gives the employees a clear
view of what is needed and also helps in upgrading their skills and knowledge
29
to keep in pace with the ever-changing technology which is very essential in
today’s competitive market.
• Development of Human Resources – Training and Development helps to
provide an opportunity and broad structure for the development of human
resources’ technical and behavioural skills in an organization. It also helps the
employees in attaining personal growth.
• Team spirit – Training and Development helps in inculcating the sense of team
work, team spirit, and inter-team collaborations. It helps in inculcating the zeal
to learn within the employees.
• Safety in work place is another important feature of training which helps to
avoid accidents and injuries in the work place.
• Organization Culture – Training and Development helps to develop and
improve the organizational health culture and effectiveness. It helps in creating
the learning culture within the organization.
• Training and Development aids in organizational development i.e.
Organization gets more effective decision making and problem solving. It helps
in understanding and carrying out organizational policies
• Training and Development helps in developing leadership skills, motivation,
loyalty, better attitudes, and other aspects that successful workers and managers
usually display.
• For every employee to perform well especially Supervisors and Managers,
there is need for constant training and development. The right employee
training, development and education provides big payoffs for the employer in
increased productivity, knowledge, loyalty, and contribution to general growth
of the firm. In most cases external trainings for instance provide participants
with the avenue to meet new set of people in the same field and network. The
meeting will give them the chance to compare issues and find out what is
obtainable in each other’s environment. This for sure will introduce positive
changes where necessary.
So, I felt it is important to carefully study the training process and helps organization
to find a solution to improve each and every employees performance and to bring
easiness for the managers to evaluate the trainees performance by make them aware
about the parameters within which the effectiveness have to be calculated. Hence the
study on training evaluation and effectiveness with regard to Tata Elxsi.
30
CHAPTER IV
METHODOLOGY OF THE STUDY
4.1 Research Approach and design
31
• Defining the problem and the research objective
• Developing the research plan
• Collection of data.
• Analyze the collected information
• Report research findings
This study adopted a descriptive survey research design. This design utilizes both
qualitative and quantitative methods of research, while at the same time, allowing the
researcher to collect data without influencing or interfering with the study subject
(Saunders et al., 2009). Data was collected among Tata elxsi employees on training
and development programs offered. Data was based on employee performance as the
dependent variable. The reason for using the mixed research method in this study was
supported by the views of Kothari (2010) and Creswell (2003) that a mixed research
strengthens the claims of the findings. Similarly, using both the qualitative and
quantitative methods for analysis, in line with Creswell (2003), provides a basis for
interpretation and discussion of findings.
Primary data and secondary data are used to collect facts and figures. Primary data is
collected through questionnaire meant for the employees. Secondary data collected
through company published Magazines, Handouts, company Website Annual reports.
Primary data
Primary data are original data collected for the purpose of a particular study. In the
present study primary data have been collected with the help of questionnaire through
Microsoft forms
..
Secondary data
These are the sources containing data, which have already been collected and
compiled for other purpose by other researchers. The secondary sources consist of
readily available materials and already compiled statistical statements and data.
Secondary data for the present research collected the major sources of secondary data
are given below.
32
• Various websites
• Different marketing journals
• Support and knowledge provided by team members
The research was designed to achieve the above-mentioned objectives and the
following tools were used to collect the required data
Sampling Method
A sample is considered during a research when the size of the population is very large
and a set is chosen to represent the whole population, this set is called a sample is a
representative of the population under study. There are two methods of sampling i.e.,
probability and non- probability sampling. To carry out this project I have used non
probability sampling method.
Sampling Frame
The sample frame represents the employees who were contacted during the survey.
Sampling Technique
Sample Size
The total sample size for the data collection for the research was 62 respondents.
33
Tools for data collection
The data has been collected from the employees through Microsoft forms. The
questionnaire was neatly designed and constructed for the purpose in line with the
objective of the study.
This chapter gives a clear picture about the research. It includes the background of
the study, statement of the problem, scope and objectives of the study.
In this chapter the researcher describes about the literature review of the study.
This chapter gives a clear picture about research approach and design, it also gives an
idea about sources of data, report structure.
34
It includes the point wise description of the results found out from the study and
gives away the final conclusion of the study.
CHAPTER-6 SUGGESTIONS
This chapter gives the suggestions for improvement after the study.
• Time constraint – While getting all the questionnaires filled, I faced that most
of the managers didn’t want to respond because of the limited time they had. I
faced a lot of problem while convincing them.
• Sample size constraint – As the employee base of the organization is huge i.e.,
around 7000 employees, so it was very difficult to cover all the employees in
this survey. Number of managers covered in this survey is limited to the sample
size of 100 employees only. This limits the scope of the project study and the
analysis may not represent the whole population.
• Duration constraint – The time duration for the project is limited to eight weeks
so it was difficult to analyze the trainings needs at micro level.
• Confidentiality – Due to the confidentiality of some information accurate
response was not revealed by some of the respondents.
35
CHAPTER – V
36
5.1 Introduction
This chapter presents data analysis, findings and discussion based on the objective on
this study. The main objective of this study was to assess effect of training and
development on employee performance. Frequency tables and percentages are part of
the descriptive statistics, regression and correlation statistics for inference.
From the sample size, ninety-three respondents were approached with questionnaire.
Out of these, sixty-two (62) were duly filled, complete and fit for use in the study.
The response rate is 66.67%.
As initially captured in the data collection tool, the study focused and used some
demographic characteristics in data collection and analysis. Gender, age. Highest
level of education, trainings attended formed part of the demographic characteristics
considered.5.3.1 Gender of Respondents
The population units at the company comprised of both male and female. From the
valid 66.67% of the response rate, majority were of female gender, contributing
53.2% while the opposite gender (male) comprised of 46.8% as shown in the table
below. It should be noted the aspect of gender balance and imbalance was in anyway
going to influence the study.
37
Frequency Percent Valid Percent Cumulative
Percent
Valid Male 29 46.8 46.8
Female 33 53.2 53.2 100
62 100 100
Source: primary data
Table 5.3.1 shows that 53.2% of the respondents were female with 46.8% of the
respondents being male. These findings indicate that there were slightly more female
respondents as compared to the males. The results also indicate that both gender had
attended trainings either at entry level to the organization or in the course of their
work.
Male Female
38
5.3.2 Age Distribution of Respondents
Referring to the table blow, the age of the respondents were classified into five
categories, and it is evident that majority (40.3%) of the employees are aged between
31- 35 years followed by respondents aged from 26-30 with (29%).Respondents aged
between 20-25 years are the least (11.3%) followed by those aged above 35 years
(19.4) of the respondents
The results in Table show, that all working generation age groups were represented in
the study.
39
20 -25 26-30 31-35
The respondents have varying levels of education attained. 32.3 % have master’s
degree, 19.3% hold diploma and with majority holding degree level which is 48.4%.
40
The level of qualification was important in the study because it helped to evaluate
whether the respondents had the prerequisite knowledge to understand the concept.
All are highly qualified.
The respondents have different experience level of working at Tata elxsi. Majority
have been working for between 1-5 years (83.9%) with those more than 5 years
coming under second position(12.9%) and those less than 1 year with (3.2%).
41
Less than 1 2 3.2 3.2 3.2
year
Valid
1 – 5 years 52 83.9 83.9 87.1
More than 5 8 12.9 12.9 100
years
62 100 100
Source: primary data
The table 5.4 shows that employees who had a longer working duration at the
organization had attended many trainings unlike those who had worked for less than a
year.
42
The respondents have different frequency of attending trainings. Most of them go for
training quarterly (83.9%) and some says as it has no specific schedule (16%). This is
depicted in the shown
43
5.4 Perception of employees towards Training and development
Majority of the respondents strongly agreed that they were aware about the objectives
of training before the session itself (79.03%),16.13 agreed that and 4.84% in neutral
manner. As the majority agreed these statement we can say that training objectives are
communicating to the employees before the training itself at Tata elxsi.
44
Source: primary data
Based on the survey, 61.29% of respondents agreed that period of training is sufficient
which is followed by 22.58% who strongly agreed it.16.13% have neither agreed nor
disagreed it. The training period may varies for different training buy most of them
agreed that the training period is sufficient for them.
45
Frequency Percent Valid Percent Cumulative
Percent
Strongly Disagree 0 0.00 0.00 0.00
Valid Disagree 0 0.00 0.00 0.00
Neither agree nor
disagree 10 16.13 16.13 16.13
46
.4.3: Training programs enhance employees’ responsibility at
work
48.39% of respondents neither agreed nor disagreed with the statement, but 20.97%
agreed and
514.52% strongly agreed that training programs are perceived to enhance employees’
responsibility at work. At the same time 16.13% disagreed this statement. It is clear
that employees didn’t know whether the training programs are perceived to enhance
employee performance
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 10 16.13 16.13 16.13
47
It is clear that employees didn’t know whether the training programs are perceived to
enhance employee performance.
From the below table it is clear that 69.35% agreed and 14.52% strongly agreed that
training programs perceived to enhance employee recognition. But only 16.13% said it
in neutral manner. It is clear that majority agreed that training programs are perceived
to enhance employee recognition which may be said from their experience.
48
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
49
5.4.5 Training programs enhance employees’ knowledge and
skills
The below table shows that 74.19% strongly agree and 25.81% agree that training
programs are perceived to enhance employees’ knowledge and skills. Training like
technical skill training or soft skill training both are useful for employees to improve
their knowledge and skills.
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
50
Agree Strongly Agree
It is clear that majority of the respondents strongly agree (67.74%) and 32.26% agree
that the enhanced knowledge and skills gained from training programs improve their
performance.
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
51
Chart 5.4.6: Enhanced knowledge and skills improve employees’
performance
51.61% of the respondents agree followed by 24.19 % strongly agree ,14.52 % neither
agree nor disagree and 9.68% disagree that training programs improve team work.
Some of them disagree may be because they only attended technical skills session
only.
52
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 6 9.68 9.68 9.68
53
PERFORMANCE
From the below table we can see that majority of the respondents agree (69.35%) and
30.65% strongly agree that training programs helped them to improve their
performance which is a positive effect.
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
Valid Neither agree nor
0 0.00 0.00 0.00
disagree
Agree 43 69.35 69.35 69.35
Strongly Agree 19 30.65 30.65 100.00
62 100 100
Source: primary data
54
Agree Strongly Agree
5.5.2 Training and development have helped to adapt with new changes
The table shows that 59.68% agree,32.36% strongly agree and 8.06% neither agree
nor disagree that training programs help them to adapt and deal with new changes in
the environment like new technology, online platforms like Learning central portal
etc.
Table 5.5.2: Training and development have helped to adapt with new
changes
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
55
Chart 5.5.2: Training and development have helped to adapt with new
changes
The table shows that 69.35% agree,27.42% strongly agree and 3.23% neither agree
nor disagree that training programs help them to increase confidence and skills to
tackle with unexpected events.
56
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
57
5.5.4 T & D reduces stress level of employees
The table shows that 80.65% agree,17.74% strongly agree and 1.61% neither agree
nor disagree that training programs reduces the stress level of employees which
means training is a relief for them.
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
58
5.5.5 Training programs increase productivity and competency level of
employees’
The table shows that 87.10% agree and 12.90% strongly agree that training programs
increase their increase productivity and competency level. This means L&D team
objective to increase productivity and competency level of employees are met by
training.
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
59
62 100 100
Source: primary data
The table shows that 24.19% disagree, 22.58% neither agree nor disagree and 53.23%
agree that they are able to complete the task within the time frame after being trained.
Some of them disagree may be because they are punctual in doing their work before
training itself.
60
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 15 24.19 24.19 24.19
61
5.5.7 Attainment of extensive knowledge and behavioural changes
From the below table we can see that majority of the respondents agree (74.19%) and
20.97% strongly agree that training programs helped them to attain extensive
knowledge and behavioural changes which is very useful for improving their
performance.
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
62
5.5.8 Training programs as a worthwhile investment
From the below table we can see that majority of the respondents agree (90.32%) and
9.68 % strongly agree that training and development programs offered by the
organization have been a worthwhile investment for them.
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
63
Chart 5.5.8: Training programs as a worthwhile investment
From the below table we can see that majority of the respondents agree (75.81%) and
24.19% strongly agree that training and development programs offers them
opportunity to learn new skills.
Table 5.5.9: Employee training programs offers opportunity to learn new skills
Cumulative
Frequency Percent Valid Percent
Percent
Strongly Disagree 0 0.00 0.00 0.00
Disagree 0 0.00 0.00 0.00
64
Neither agree nor
0 0.00 0.00 0.00
Valid disagree
Agree 47 75.81 75.81 75.81
Strongly Agree 15 24.19 24.19 100.00
62 100 100
Source: primary data
Chart 5.5.9: Employee training programs offers opportunity to learn new skills
65
Pearson
Training & correlation 1 .853
Pearson 1
Employee correlation Sig.( 2 0.853 .000
Performance -tailed)
N 62 62
Correlation results reveal that there is a very high positive and significant relationship
between training and development on employees performance at 99% confidence
level (r=0.853, p=0.000; a=0.01).From the results, it is clear that trained and
developed employees has high performance. The study findings are in agreement
with past research findings that found out that training and development leads to
improved employees performance.
Model Summary
Adjusted R
Model R R Square Square Std.Error of the estimate
1 0.853 0.728 0.724 0.19338
Sum of
Model Squares Df Mean square F Sig.
Regression 6.039 1 6.039 160.64 0
1 Residual 2.255 60 0.038
Total 8.294 61
66
Unstandardised Standardsized
Model coefficients coffecients T Sig.
B Std.error Beta
1 (constant) 1.398 0.215 6.489 0
Training &
development 0.662 0.052 0.853 12.674 0
Model summary results indicate that there is a very high positive relationship
between training and development on employees’ performance (R=0.853). The
results also reveal that training and development account for 72.8% of employees’
performance while 27.2% of employees’ performance is as a result of other factors a
part from training and development. (R²=0.728).
ANOVA results show that the overall single regression model is appropriated in
measuring the relationship between training and development and employees’
performance. This is shown by a significant F-statistical test (F=160.642; p=0.000)
Y=a0+a1x1+e, where a0 which is the value of the employee performance when the
value of training and development is equal to zero; a1 in the regression coefficients
which measures the change induced by X, on Y. X1-Training and Development; Y-
Employees Performance and e error term. From the results, the simple linear
regression model can know he written as Y (operational performance) 1.398+0.662X,
where 0.662 represent a Since 0 not equal to 0 not equal to 0.662, the study rejected
the null hypotheses and concludes that there is a significant and positive relationship
67
between training and development on employees’ performance. The study findings
are in agreement with past research findings that found out that training and
development contributes positively to employees performance.
CHAPTER-VI
FINDINGS &
CONCLUSIONS
68
FINDINGS
This study sought to assess the effect of training and development on employee
performance and perception of employees towards training and development at Tata
elxsi.
69
• Majority of respondents agree that training programs help them to adapt and
deal with new changes in the environment like new technology, online
platforms like Learning central portal etc.
• Most of them agree that training programs help them to increase confidence
and skills to tackle with unexpected events.
• The respondents also agree that training programs reduces the stress level of
employees which means training is a relief for them.
• Majority of them agree that the training programs increase their increase
productivity and competency level.
• They agree that they are able to complete the task within the time frame after
being trained
Pearson Correlation analysis was used to measure the relationship between training
and development and employee performance. It indicated that there is a very high positive
relationship between training and development on employee’s performance (R=0.853) The
results also reveal that training and development account for 72.8% of employees
‘performance while 27.2% of employees performance is as a result of other factors a part
from training and development. (R²-0.728).
ANOVA results showed that the overall single regression model is appropriated in
measuring the relationship between training and development and employees’
performance. This is shown by a significant F-statistical test (F=160.642; p=0.000).
Regression coefficient results depicted that training and development contributes
significantly (p=0.00, a=0.05) to the employees’ performance thus an increase in
employees performance by 1 units leads to an increase of 0.662 units use of training and
development. Regression analysis was used to measure the influence of training and
development on employee performance. The result was significant at 0.000 level.
The study also identified that the majority of the respondents knew the training
objectives before attending the session and they are satisfied with the current training
time frame. They have positive opinion about training and development and it is clear
70
that training programs help them to increase their knowledge, skills, productivity,
competency level, confidence etc. The study found out that there is a higher positive
correlation between training and development on employees’ performance at 99%
level of confidence. The study regression coefficient results found out that training and
development contribute significantly to the employees’ performance. Since the
computed beta value was not equal to zero the study rejected the null hypothesis and
concluded that there is a significant and positive relationship between training and
development on employee performance at Tata Elxsi.
Conclusion
Based on the findings of this study, the level of training and development corresponds
with the level of employee performance at Tata Elxsi. The two phenomena require
conducive conditions to thrive. Thus, there is a positive relationship between training
and development and employee performance. This study concludes that training and
development influences employee performance. Notably, employee empowerment is
vital in every organization and thus should be nurtured to enhance entrepreneurial
behaviour in employees and hence increase productivity and performance excellence.
Based on the results from data analysis and findings of the research, it can be
concluded that the majority of the employees appreciate training that is aimed at
improving their skills and effectiveness in job areas. It is important that L& D team
also encourage free flow of information and feedback from its employees in order to
capture areas of shortfall and address issues as they arise this will also help in
reducing resistance should new procedures be implemented. It is clear that employees
have a positive effect in their performance because of training.
71
CHAPTER-VII
SUGGESTIONS
72
SUGGESTIONS
Employees are the most important asset in any organization. Therefore, a planned
investment to develop their skills, knowledge and abilities will provide the best return
on investment for the organization as it immensely helps its’ growth.
• It is also important to make the trainees aware of the skills and knowledge they
lack need to be improved and how improving their performance contribute for
the organizational success as well as their personal growth .
73
• For ineffective training, the measures like retraining, assigning online courses,
videos or study material to the employees will be useful.
APPENDIX
74
RESEARCH QUESTIONNAIRE
A: RESPONDENTS' PROFILE
20-25 25-30
30-35 Above 35
75
5. How often do you undergo training?
1 2 3 4 5
6. The training programme objectives were known to you
before attending it
76
11. Training programs are perceived to enhance employee
promotion
12. Promotion at work enhances employee performance
1 2 3 4 5
18. The training and development programs attended have
helped me to improve on my performance
19. There is a positive effect/impact of training and
development on performance
77
25. I have increased the Competency level due to T&D
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