INTRODUCTION OF TRAINING AND DEVELOPMENT Training and development refers to the imparting of specific skills, abilities and knowledge

to an employee. Training and development may be understood as any attempt to improve current or future employee performance by increasing an employees ability to perform through learning usually buy changing the employees attitude or increasing his or her skills and knowledge. TRAINING Training is concerned with imparting developing specific skills for a particular purpose. Training is the act of increasing the skills of an employee for doing a particular job. Training is the process of learning a sequence of programmed behavior In earlier practice, training programme focused more on preparation for improved performance in particular job. Most of the trainees used to be from operative levels like mechanics, machines operators and other kinds of skilled workers. When the problems of supervision increased, the step was taken to train supervisors for better supervision.

MEANING OF TRAINING Training may be defined as a planned programme designed to improve performance and to bring about measurable changes in knowledge, skills, attitude and social behavior of employee for doing a particular job. Training refers to the learning and teaching activities. It is the act of increasing the knowledge and skill of an employee for doing a particular job. DEFINITION Michael Armstrong defines training is the systematic modification of behavior through learning which occurs as a result of education, instruction, development and planned experience. Michael j. jucious points training is any process by which the attitudes, skills and abilities of employees to perform specific jobs are improved.

DEVELOPMENT Management development is all those activities and programme when recognized and controlled have substantial influence in changing the capacity of the individual to perform his assignment better and in going so all likely to increase his potential for future assignments. Thus, management development is a combination of various training programme, though some kind of training is necessary, it is the overall development of the competency of managerial personal in the light of the present requirement as well as the future requirement. Development an activity designed to improve the performance of existing managers and to provide for a planned growth of managers to meet future organizational requirements is management development. Development is an inclusive process with which both managers and individual employees involved. It offers opportunity to learn skills, but also provide an environment designed to d i s c o v e r i n g a n d c u l t i v a t i n g b a s i c a t t i t u d e s a n d c a p a b i l i t i e s a n d f a c i l i t a t i n g c o n t i n u i n g personal growth.

OBJECTIVES OF TRAINING AND DEVELOPMENT 1. To impart to new entrants the basic knowledge and skill they need for

a n i n t e l l i g e n t performance of definite tasks. 2. T o e n s u r e t h a t e a c h e m p l o ye e i s e q u i p p e d w i t h c a p a b i l i t i e s t o p e r f o r m

v a r i o u s t a s k s associated with his role. 3. To assist employees to function more effectively in their p r e s e n t p o s i t i o n s b y exposing them to the latest concepts, information and techniques and developing the skills they will need in their particular fields. 4 . T o h e l p t h e e m p l o ye e d e v e l o p a s a n i n d i v i d u a l s o t h a t t h e o r g a n i z a t i o n c a n r e c o g n i z e and use the maximum possible potential of its employees. 5. To help employees work as team members since no individual c a n a c c o m p l i s h t h e goals of the organization single handedly.

NEED FOR TRAINING 1. Training program helps in increasing the quality and quantity of output. 2. It helps each individual employee to utilize or develop his/her full potential. 3 . E m p l o ye e s f e e l t h a t t h e y a r e b e i n g t a k e n c a r e o f b y t h e m a n a g e m e n t a n d t h e s e r e s u l t s in increasing their morale. 4. By training, the worker is enabled to make the more economical a n d b e s t u s e o f equipment. This results in the reduction of cost of production. 5 . T r a i n e d e m p l o ye e n e e d s l e s s s u p e r v i s i o n b e c a u s e o f t h i s s u p e r v i s o r c a n i n c r e a s e h i s span of management, resulting in reduced cost of supervision. 6. The availability of trained personnel ensures long term stability and f l e x i b i l i t y i n t h e organization. 7. The workers are exposed to the latest concepts, information and t e c h n i q u e s , t h e y become well qualified by this and the increase their market value and earning power. 8. To help a company fulfill its future personnel needs 9 . T o i m p r o v e s o r g a n i z a t i o n c u l t u r e . 10.To improves health and safety.

PRINCIPLES OF TRAINING

1. Training and Development is continuous & its scope exists throughout the

career.

2. T h e o b j e c t i v e & s c o p e o f a t r a i n i n g p l a n s h o u l d b e d e f i n e d b e f o r e i t s d e v e l o p m e n t i s begun in order to provide a basis for common agreement & cooperative action 3. Training and Development must meet the organization objectives, so the objectives of the employee Training and Development must be set in clear terms. 4. There exists a gape b/w best performance and present performance and Training and Development can bring out the hidden talents to fill the gaps. 5. Growth is a challenge, which involves stress and strains. Training helps an individual to cope up with these and helps in concentrated effort.

6. A c t i v e p a r t i c i p a t i o n o f t h e l e a r n e r , t h e f e e d b a c k o f t h e l e a r n e r s p e r f o r m a n c e accelerates growth and improves the effectiveness of Training and Development. 7. Training should be conducted in the actual job environment to the maximum possible extent.

IMPORTANCE OF TRAINING AND DEVELOPMENT; It increases productivity in an organization. Training programmes by increasing skills, aptitudes and abilities workforce result in increased productivity. It helps the organization to adopt and use advances in technology because of highly knowledgeable staff. It builds more efficient, effective and highly motivated work group by which companys competitive positions are enhanced Training helps the workers to improve their morale. Training helps in the reduction of dissatisfaction, absenteeism, labor turnover, etc. It minimizes accidents and wastages of scarce resources. It supplies talented workforce to enlarge the business activities. It increases organizational stability.

BENEFITS OF EMPLOYED TRAINING; Improve the job knowledge and skills at all levels of the organization. Improve morale of the work force. Helps people identify with organizational goals.

Helps create a better corporate image. Improves relationship between boss and subordinate. Aids in organizational development. Learns from the trainee. Helps prepare guidelines for work. Aids in understanding and carrying out organizational policies. Aids in development for promotion from within. Aids in increasing productivity and quality of work. Helps keep costs down in many areas, example production, and personnel administration. Improves labor- management relations. Creates an appropriates climate for growth, communication. Aids in improving organizational communication. Helps employees adjust to change.

TYPES OF TRAINING PROGRAMME 1. Induction or orientation training;Induction is concerned with introducing or orienting a new employee to the organization and its procedures, rules and regulation. Induction training is means to induct a new employee into the organization with a view to gaining his confidence and developing in him a sense of co-operation. 2. Job training;-

Job training relates to specific job which the worker has to handle. The objective of these types of training is to increasing the knowledge of workers about the job. It gives the information about machines, process of production, instruction to be followed, and methods to be used and so on. 3. Promotional training;The talented employees may be gives adequate training to make them eligible for promotion to higher jobs in the organization. Therefore it is essential that he is provided sufficient training to learn new skills to perform variety of duties efficiently. 4. Refresher training;The passage of time employees may forget some of the methods, which were taught to them, or they may have become outdated because of technological development and improved techniques of management and production. 5. Internship training;It is usually meant for such vocations where advanced theoretical knowledge is to be backed up by practical experience on the job. For instance, engineering students sent to big industrial enterprises for gaining practical work experience and medical students are sent to big hospitals to get practical knowledge.

METHODS OF TRAINING AND DEVELOPMENT; - there are number of training and development method are used for different types of employees at different levels they are; 1. on the job method 2. off the job method 1. On the job method;-It is provided when the workers are taught relevant knowledge, skills and abilities at the actual work place. It includes: 1. Job instruction training(JIT);-

This method is also known as training through step by step. In this method, a trainer or supervisor gives instruction to an employ how to perform his job. 2. apprenticeship programmer;It is one of the job training methods. This method of training is meant to give the trainee sufficient knowledge and skills in doing a job or a series of related jobs are involved apprenticeship training programs are jointly sponsored by collages universities and industrial organizations 3. coaching;This is similar to the JIT. Coaching may be defined as an informer, unplanned training and development activity provided by supervisors and peer. In coaching, the supervisor explains or guides the things and answers questions. 4. Job rotation;In case of this methods, a trainee moves from one job to the other without any change in the pay. This method of training is more suitable for developing skills, operational ability and flexibility. 5. Committee assignments;Under this method, groups of trainees are given and asked to solve an actual organizational problem. The trainees are asked to solve this problem jointly. 6. Mentoring;It is a relationship in which a senior manager in organization assumes the responsibility for grooming a junior person. A mentor is a teacher, spouse, counselor, developers of skills and knowledge. The main objective of mentoring is to help an employee to attain psychological maturity and effectiveness.

2. Off the job training method

1. Special lectures;This method is a traditional and direct method of instruction. Nowadays lecture method is widely adopted by many concerns. 2. Simulation exercises;Any training activity that explicitly places the trainee in an articificial environment that closely mirrors actual working condition can be considered as simulation.

Role play Decision games Case study Vestibule training

3. Incident method;This method was developed by Massachusetts institute of technology. In this method, only a brief incident is presented to the trainees for discussion. Then the group puts questions to the instructor to draw out salient facts. 4. Programmed instruction;This is the recently developed technique based on the principle of reinforcement developed by B. F. Skinner. This technique is used to teach non motor and behavioral skills. 5. Computer based training;It is more interactive and realistic method of training. It increasing knowledge or skill of employees. The computer simulates the number of critical job dimensions.

6. Audio visual based training ;Audio visual based training techniques like DVDs, films, power points, videoconferencing audiotapes and videotapes can be very effective and widely used for training the employees in an organization. RESEARCH METHODOLOGY

MEANING OF RESEARCH:Research as the manipulation of things, concepts of symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art. The Research Methodology followed for further work can be primarily classified into two stages namely Exploratory and Descriptive. The stepwise details of the research are as follows:

Stage - I Exploratory Study: Since we always lack a clear idea of the problems one will meet during the study, carrying out an exploratory study is particularly useful. It helped develop my concepts more clearly, establish priorities and in improve the final research design. Exploratory study will be carried out by conducting: Secondary data analysis which included studying the website (www.falcon tyers com) of the company and also going through the various articles published in different sources (magazines, books, internet, newspapers) on Small and Medium Scale Enterprises and Training and development process. Experience surveys also conduct with Assistant-Manager Human Resources and the General Manager and Personnel Officer of falcon tyres ltd to gain knowledge about the nature of Training and development process followed in the organization. Stage II Descriptive Study: After carrying out initial Exploratory studies to bring clarity on the subject under study, Descriptive study will be carried out to know the actual Training and Development method being followed at falcon tyres limited. The knowledge of actual training and development process is needed to document the process and suggest improvements in the current

system to make it more effective. The tools used to carry out Descriptive study included both monitoring and Interrogation. OBJECTIVE OF THE STUDY;The broad objective of the study of training policies in falcon tyres it is to study the impact of training on the overall skills development of workers. The specific objective of the study is;

1. The primary objective of my study at falcon tyres to lay down the foundation of training and development.

Secondary objective;1. To examine the effectiveness of training in overall development of skills of workforce.

2. To examine the impact of training on the workers.

3. To study the changes in behavioral pattern due to training.

4. To measure the differential change in output due to training

5. To compare the cost effectiveness in implanting training programme.

SCOPE OF THE MY STUDY;The scope of the study covers in depth the various training, practices, formats being followed and is limited to the company (falcon tyres ltd) and its employees. The different in falcon tyers ltd through its faculties outside agencies or professional groups. It also judges the enhancement of the knowledge and skills of employees and feedback on its effectiveness. This project provides with an opportunities to explore in the field of human resources. This project also provides the feedback of people involved in the training and development process apart from that it would provide great deal of exposure to interact with the high profile managers of the company.

COMPANY PROFILE;

Incorporated in 1973 falcon tyres ltd located in Mysore Karnataka state India is a part of Mr. P. K RUIA group falcon manufactures and markets a wide range of NYLON bias ply tyres (which includes) low aspects ratio of varying load index unidirectional tyers, tubes less 2 tyres (scooter) and tubes for two and three wheelers, passengers cars, jeeps, light, commercial vehicles and farm vehicles under DUNLOP brand for the domestic market and FALCON brand for overall markets.

Falcon is the preferred choice of all leading vehicle manufactures in India like;-

Bajaj auto Yamaha motors Escorts Hero Honda motors Majestic auto LML Kinetic engineering Kinetic motor company Royal Enfield motors

VISSION AND MISSION OF THE COMPANY;VISIONS;To set global benchmark in each segment of our operation and in the process delight all our customers, employees and stakeholders. MISSIONS;The Ruia Group will always strive to be a socially responsible corporate citizen, dedicated to providing value for money to its customers through the operational excellence of its process, partners & employees where the focus is on continuous improvement of the quality of all its products and processes.

Falcon tires limited global operation includes exporting tyres at Bangladesh, shrilanka, Peru, Nepal, European countries.

Falcon tyres meet ISO, BIS, JIS, and T & RA AIS 044& ETRTO standards wherever applicable. Falcons R&D center is engaged in upgrading the product performance, quality and introduction of new products. Falcons aim is to give satisfaction to its customers by offering high quality and cost effective tyres and tubes.

Quality accreditation; Dot marketing for all 2&3 wheelers sizes for export to USA. ECE marketing for export to European countries. DGS and D certifications for all 2&3 wheelers sizes for supply to government organization. Falcon has got ISO 9001:2000 and TS 16949:2002.

The company has also received certificate for ISO 14001:2004 and OHSAS 18001:1999 from M/S TUV SUDDEUTSCHLAND INDIA PVT LTD during the financial year.

The company supplies to all the major OEM are directly from the factory. The replacement market is catered to through the C & F agents establishments all over the countries. The export market is directly handled from the factory at Mysore. The companys brand DUNLOP has enabled the company to

withstand the severe cut throat competition from the other tyre companies to a great extent.

A. Companys philosophy on corporate governance;The company believes in the philosophy of continuous improvement in all facets of its operations, budgets, investments proposal, significant development are placed before the board committee such as a audit share transfer remuneration and investors grievances committee meet regularly to considers aspects relevant to each committee.

B. Board of director;The term of the companys corporate governance policy. All statutory and other significant and material information are placed before the board of enable.

The board has adopted a code of conduct for directors and the entire general manager and above and a declaration has been obtained from the directors about its compliance.

The board of directors of falcon tyres consists of;-

Mr. P. K RUIA Mr. A SADASIVAM

Mr. PRAKASH M. NENE Mr. S BADRINATHAN Mr. TARUN GANDHI Mr. AMBUJA KUMAR JAIN

The managing director of falcon tyres is Mr. A SADASIVAM C. Audit committee;The audit committee is headed by MR. P M NENE he is the chairman of the committee. There are two members Mr. S BADRINATHAN & Mr. RAVINDRA PAL BHATIA. Mr. S BADRINARAYANAN is the secretary of the committee.

The function of the committee; Review the companys financial reports process. Review the external auditors on areas of concerns. Recommending appointment of external auditor and fixation of audit fees. To review the companys financial risk management policies. Review the adequacy of internal audit functions.

D. Remuneration committee;The remuneration committee determines and directors determines and fix remunerations to executive directors and managing directors. The

remuneration of managing directors and the executive directors had been determined considering the prevalent remuneration for managerial personnel of companies of similar size stature.

E. Investors/ shareholders grievances committee ;The committee is headed by Mr. A SADASIVAM. The committee has other members namely Mr. S BADRINATHAN and Mr. P M NENE.

During the year one complaint was received from a shareholders and the same has been resolved to the satisfaction of the complaint and no transfer was pending as on 31st march 2006.

Competitors information;1. MRF;The leading company in the tyre industry, MRF ltd, boasts of an enviable track record. The company has continued in the same vein and has been posting excellent results notwithstanding the winds of recession blowing across the economy. Performance of the company has been commendable in light of the fact that the user industry is efficiency. The company caters to a host of impressive clients.

2. CEAT;Being the second largest selling brand in India with a market share of 14.6 percent. CEAT caters primarily to the replacement market due to the strong growth in the OEM sector. The share of the replacement market in the total revenue of the company has fallen. However the production growth in the automobile sector over the past few years should provide a boost to the replacement market in the coming years and CEAT could be a major beneficiary.

3.

Apollo tyres ltd (ATL);A slowdown in the tyre market and rubber procurement at high prices has put the brakes on Apollo tyres ltd. The company has traditionally been the market leader in the track and bus tyres segments. ATL caters to the replacements segments of the domestic market. Following its takeover of premise tyres. ATL market share has risen. Besides the core truck and bus tyres business fairly considerable part of its turnover comes from automotive tubes and flaps for which it has commissioned a plant in pune.

Achievements/ awards; Central excise has termed FTL as GOOD PAYARS. Sales tax departments and the electricity board have given GOLD CARD to FTL. The PF departments have termed FTL as BEST ENTERPRISES. In addition to this Mr. J. A. K. TAREEN the senior general manager HR of falcon tyres ltd has been conferred with RASBIC AWARD

2002 for leadership and life time achievement in the field of human resource management. The falcon family takes pride in the achievements of the Mr. J. A. K TAREEN. The company has embarked on a 600 million rupees expansion plan. The tyre manufactures capacity is being raised from 5,50000 to 7,50000 per month and raised from 3,50000 to 7,50000 per month. Falcon tyres ltd in case of emergencies goes for rush purchase of stores and spares. The minimum and maximum capacity of falcon tyres ltd per day is;

minimum

maximum

Tyres tubes

20000 per day 12000 per day

30000 per day 21000 per day

MILE STONES OF FALCON TYRES LIMITED 1973:-falcon tyres limited was promoted by a group of performances 1975:-falcon tyres limited started its commercial production 1983:-company starts making losses 1987:-the company was taken over by Mr.CHHABRIA a part of jumbo group or industries 1991-1992:-the entire accumulated losses of the company where wiped of the company carried out on of the most remarkable turnover in the India corporate history. 1992-1995:-falcon tyres limited expended its capacity from 2.2 lakhs to 3 lakhs.

1995-1996:-it emerged as the highest profitable company in the Indian tyre industry with a net profit ratio of over 5%. 1996-1997:-it made record by selling a million tyres to Bajaj auto limited. 1997-2001:-falcon tyres limited expended its installed capacity from 3.0 lakhs to 3.5 lakhs. 2001-2002:-it acquired modern and sophisticated technology from Korea, Taiwan and uk for producing quality tyre and tubes installed capacity expended from 3.0 lakhs to 4.5 lakhs per month for tyres and tubes production. The turnover of the industry reached rupees 182.00 crores. 2002-2003:-the turnover of the industry increased to 182.00 crores to rise in price of raw material. 2004-2005:-the turnover of the company increased to 223.95 crores

Automotive tyres sectors 50% Bicycle tyres and tubes- 15% Footwares-12% Belts-06% Camel back latex products- 07% Remaining rubbers -10%

Major customers of falcon tyres Baja auto limited akrudi pune

Bajaj auto limited waluj Aurangabad Bajaj tempo limited akrudi pune Hero Honda motores limited gurgoan Majestic auto limited Ghaziabad Royal enfield motars Chennai LML limited Kanpur Yamaha motares India private limited Faridabad Kenetic engineering limited pune Piaggio greaves limited Barambath VST tillers and tractors limited Bangalore

Company secretary Registered office Factory Bankers

Mr.s BHADRINARAYANAN Gold towers 50 residency road Bangalore Metagalli KRS road Mysore 570016 Syndicate bank Punjab national bank State bank of India

Auditors

M/s lodha and company 14 government place (east ) Calcutta 700001

.No 1 2 3 4 6 5 7 8 9 10

Name M C Bhansali Ashok Agarwal Sunil Bhansali S Ravi S Badrinarayanan Ashok Gupta Pawan Kumar Ruia AK Jain K N Prithviraj Prakash P Mallya

Designation Company Secretary Director Executive Director Non Executive Director Additional Director Additional Director Executive Chairman Independent Director Independent Director Independent Director