COMPANY PROFILE Background & Management Values, Mission & Objective BHELs product profile Financial profile of BHEL

BHEL Shareholding pattern BHEL ----- AN OVERVIEW BHEL is the largest engineering and manufacturing enterprise in India in the ene rgy related infrastructure sector today. BHEL was established more than 40 years ago ushering in the indigenous Heavy Electrical Equipment industry in India, a dream which has been more than realized with a well- recognized track record of performance. It has been earning profits continuously since 1971-72 and achieved a sales turnover of Rs 14525 Crores with a profit before tax of Rs 2564 Crores 2005-06. In 2007 BHEL has achieved an all time high turnover of Rs 18739 crores, notching a growth of 29% over the previous year. Net profit has soared by 44% t o 2415 crores over 1679.2 crores of last year. BHEL has been paying dividends ov er a quarter century and in line with the excellent performance during the finan cial year 2005-06, an all time high dividend of 145% has been paid. 1

BHEL caters to core sectors of the Indian Economy viz. Power Generation and Tran smission, Industry, Transportation, Renewable Energy, Defense, etc. The wide net work of BHELs 14 manufacturing divisions, 4 power sector regional centers, 8 serv ice centers, 15 regional, offices and a large number of Projects Sites spread al l over India and abroad enables the Company to promptly serve its customers and provide them suitable products, systems and servicesefficiently and at competiti ve prices. BHEL has already attained ISO 9001 certification and all the units/di visions of BHEL have been upgraded to the latest ISO-9001; 2000 version quality standard. All the major units/divisions of BHEL have been awarded ISO 14001 cert ification for environmental management systems and OHSAS 18001 certification for occupational health and safety management systems Major Miles stones in the history of BHEL FEB. 1947 The planning board felt the need for electrical machinery in India. MAR. 1948 Sir J.C.Ghosh set up heavy electrical generating equipment factory in the state sector. JAN. 1955 S.A.Gadkary committee reiterates the need for heavy electrical factory. AUG. 1956 Heavy Electrical (Pvt.) LTD, was incorporated which was later renamed as HE (I) LTD. NOV. 1964 Bharat Heavy Electrical Ltd, was established and plants at Haridwar, Hyderabad & Trichy were set up. JULY. 1972 Action committee of pub lic Enterprises recommends integration. JAN. 1974 HE (I) LTD and BHEL were formally merged and the corporate plan of the company was prepared. JAN. 1980 BHEL was set up 3rd generation plants at TRICHY steel tube plant HARIDWAR casting and forging plant JHANSI transformer pl ant 2

 In 1982BHEL also entered into power equipments, to reduce its dependence on the power sector. So, it developed the capability to produce a variety of electrical , electronic and mechanical equipments for all sectors, including transmission, transportation, oil and gas and other allied industries. In 1992, During the year, 10 thermal sets, 2 gas sets and 11 hydro sets were com missioned. Government of Indias liberalization policy and disinvestments policy o n its pattern of shareholding in PSUs. In 1994,During the year the company established Asias largest fuel evaluation tes t facility at Tiruchi - The Company commissioned ten industrial power plants res ulting in power generating capacity addition of 293 KW In 1995, - The countrys premier state owned undertaking, BHEL, has commissioned I ndias first 250 mw capacity thermal generating unit at Dahanu power station in Ma harashtra. BHEL won this World Bank contract against competition from multinatio nals. In 1997, In Feb. Greater autonomy was given to PSUs. 9PSUs including BHEL were s elected as Navratnas to become Global Giants The public sector Bharat Heavy Elec tricals Ltd (BHEL) has won the national best exporter award for 1995-96, institu ted by the Engineering Export Promotion Council, of the eighth consecutive year, from Madurai. In June, Govt. announces first autonomy package for Navratnas 3

 In 1998,The public sector Bharat Heavy Electricals Ltd (BHEL) has entered into a n agreement with the Indian Space Research Organization (ISRO) for manufacture a nd supply of solar panels for upcoming Indian Satellites. In 1999,Bharat Heavy Electricals Ltd (BHEL) has entered into a technical collabo ration agreement with Babcock Borsig Power GmbH of Germany for the manufacture o f `once through boilers` In 2000 The Company has won the top exporters award among the public and private sector companies in India for the 11th Consecutive year The Company is consider ing a proposal to launch a voluntary retirement scheme (VRS) to `select` employe es who have been under performing and not managed any promotions or those who ha ve consistently taken leave or any other proficiency related criteria. - The Com pany has bagged the `Samman Patra` award from the Finance Ministry for its unble mished track record with Airport Customs in regard to payment of customs duties. 4

 In 2001,Bharat Heavy Electricals Ltd. has bagged the prestigious `Golden peacock ` national quality award for the second consecutive year for achieving excellenc e in quality conforming to global standards. In 2002, Awarded the top exporters` award by Engineering Export Promotion Counci l for the year 1999-2000 -Receives award from Confederation of Indian Industry ( CII) becoming the first PSU to win this honour In 2003BHEL and TCS tie-up to develop IT-based solutions for power sector In 2004Bhel has joined hands with a UN body `Global Compact` to share experience s with global corporate houses for greater focus on corporate social responsibil ity Appoints A K Puri as the chairman and managing director of Bharat Heavy Elec tricals Ltd (Bhel). 5

 In 2005Delists equity shares from the Madras Stock Exchange Ltd (MSE) w.e.f. Jan uary 19, 2005.Delists equity shares of the Company voluntary from The Stock Exch ange, Ahmadabad (ASE) with effect from January 28, 2005.-BHEL, TCS jointly worki ng on marketing initiative `Power Pack`-Appoints Dr V. Gopalakrishnan as Chief o f the Bharat Heavy Electricals Ltd at Tiruchi Bhel`s Trichy, Bangalore plants wi n five National Safety Awards In 2006,BHEL inks agreement with IIT Madras for ne w courses. Bechtel signs Dabhol agreement with BHEL In 2007,BHEL has raised its research & development spend to Rs 238 crore during fiscal 200607, up from Rs 15 2 crore last year. BHEL gets ICWAI national award for excellence in cost managem ent 2006. In Feb. BHEL pays all-time high 125% interim dividend for fiscal 200607. BHEL employees win maximum number of Prime Ministers Shrama BHEL achieved an all time high turnover of Rs.18739 crore in Comparison to last year of Rs 14525 crore Net profit has soared by 44% to Rs. 2415 crore in comparison to last year of Rs. 1679.20 crore BHEL has announced 245 % of dividend on its original equity .An issue of bonus share in the ratio of 1:1 has been declared by the company. 6

Values: Strike adherence to commitments Foster learning, creativity and team work. Ensur e speed of response Respect for dignity and potential for individual Loyalty and pride in the company Zeal to excel and zest for change Integrity and fairness i n all matters Most of them have been rephrased. "Zest for change" has been added as change has been integral with success and the rate at which change is needed is very high compared to earlier period. 7

OBJECTIVES GROWTH To ensure a steady growth by enhancing the competitive edge of BHEL in ex isting businesses, new areas and international operations. PROFITABILITY To provide a reasonable & adequate return on capital employed, primarily through improvement in operational efficiency, capacity utilization & productivity and generate adequate internal resources to finance the companys growth CUSTOMER FOCUS To build a high degree of customer confidence by providing increased value for h is money through internationals standards of products quality, performance and s uperior customer services. PEOPLE ORIENTATION To enable each employee to achieve his potential, improve his capabilities, perc eive his role & responsibilities and participate & contribute positively to the growth and success of the Company. To invest in human resources continuously and be alive to their needs IMAGE To fulfill the expectations which stakeholders like government as owner, employe es and the country at large have from BHEL. 8

BHEL PRODUCT PROFILE 1. Power Generation Power Generation Sector comprises thermal, hydro and nuclear power plant busines s. As of 31.3.2006.BHEL supplied sets account for 76741 MV in the country, as ag ainst nil till 1969-70 Custom- made hydro sets of Francis, Pelton and Kalpan for different headdischarge combinations are also engineered and manufactured by BH EL In all, orders for more than 880 utility sets of thermal, hydro, gas and nucl ear have been placed on the company as on date. The power plant equipment manufa ctured by BHEL is based on contemporary technology comparable with the best in t he world, and is also internationally competitive 2. Industries BHEL manufactures and supplies major capital equipment and system like captive p ower plant, centrifugal compressor, drive turbines, industrial boilers and auxil iaries etc. BHEL has also emerged as a major supplier of controls and instrument ation systems, especially distributed digital control systems for various power plants and industries. 3. Transportation Most of the trains on Indian Railways, whether electric or diesel powered are eq uipped with BHELs traction propulsion system and controls. Indias first undergroun d metro at Kolkata runs on drives and controls supplied by BHEL. Almost all the EMUs in service are with electrics manufactured and supplied by BHEL. BHEL has a lso diversified into the area of track maintenance machines for Indian Railways. 4. Renewable Energy BHEL has been manufacturing and supplying a range of Renewable Energy systems an d products. It includes Solar Energy systems namely, PV modules, PV power plants , solar lanterns, solar pumps etc . 5. Oil and Gas BHEL is supplying onshore drilling rigs equipment viz. draw works, rotary table, traveling block, swivel, mast and sub structure, mud systems and rig electrics a nd Xmas tree valves 6. Transmission BHEL supplies a wide range of products and systems for transmission and distribu tion application. The products manufactured by BHEL include power transformers, instrument transformers, dry type transformers etc. 9

ACTIVITY PROFILE Power Generation and Transmission Steam Turbines-Generator sets and Auxiliaries Boilers and Boilers clear Power Generation Equipments Hydro Turbines-Generator Sets & Auxiliaries Ga s Turbines-Generator Sets Heat Exchangers Condensers Bag Filters Valves Pumps El ectrical Machines Power, Distribution and Instrument Transformers Reactors Porce lain

Industries/Transportation/Oil & Gas /Renewable Energy Steam Turbine-Generators Sets Gas Turbine-generators Se nerators Drives Turbines Marine Turbines Industrial Heat Exchangers Industrial V alves Industrial Fans Capacitors Broad Gauge AC, AC/DC Locomotives Diesel-Electr ic Shunting Locomotives Traction Motors & Control Equipment Electric Trolley Bus es Battery operated Passenger Vans Oil Rigs and Oil Field Equipment Wind Electri c Generators Stand-alone and Grid-Interactive Solar Power Plant Solar Water Heat ing Machine 10

Systems and Services Turnkey Utility Power Station/EPC contracts Captive Power Plant Consultancy Serv ices Construction Services Software packages for Utilities BHEL IN INDIA REGIONAL OFFICES (POWER SECTOR): 1. NEW DELHI (NORTHERN REGION) 2. CALCUTTA (EASTHREN REGION) 3. NAGPUR (WESTHREN REGION) 4. MADRAS (SOUTHREN REGION) BUSINESS OFFICES: 1. BANGLORE 2. BHUBANESHWAR 3. BOMBAY 4. CHANDIGARH 5. GUWAHATI 6. JABALPUR 7. J AIPUR 8. LUCKNOW 9. MADRAS 10. NEW DELHI 11. PATNA 12. RANCHI 13. SECKUNDRABAD 11

MANUFACTURING UNITS:1. BANGALORE 2. BHOPAL 3. HARDWAR 4. HYDRABAD 5. JHANSI 6. R ANIPET 7. RUDRAPUR 8. TIRUCHIRAPALLI SERVICE CENTRES:1. BANGALORE 2. BARODA 3. CALCUTTA 4. CHANDIGARH 5. SECUNDRABAD 6. NEW DELHI 7. NAGPUR 8. PATNA 9. VARANASI 12

Board of Directors Shri Ashok K. Puri Shri Naresh Chaturvedi Dr. Surjeet Mitra Shri Vineet Nayyar S hri Sanjay M. Dadlika Shri Ashok K. Aggarwal Shri Manish Gupta Shri Shekhar Dutt a Shri Raman Singh Sidhu Shri Madhukar Shri Ramji Rai Shri S.K.Jain Shri A.K.Mat hur Shri K. Ravi Kumar Shri C.S.Verma Shri N.K.Sinha Chairman and Managing Direc tor Director Director Director Director Director Director Director Director Dire ctor Director (ER &D) Director (HR) Director (IS&P) Director (Power) Director (F inance) Company Secretary HEAVY ELECTRICAL EQUIPMENT PLANT, HARDWAR: 13

Heavy Electrical Equipment Plant, Hardwar of this Multi-unit corporation with it s 7467 strong highly skilled technicians, engineers, specialists and professiona l experts is the symbol of Indo Soviet and Indo German Collaboration. It is one of the four major manufacturing units of the BHEL.With turnover of 1088 crores a nd PBT of Rs.68 crores, HEEP added 3000 MW of power to the National grid during 2001-02. HEEP is engaged in the manufacture of Thermal and Nuclear Sets up to 10 00MW, Hydro Sets up to HT Runner dia 6300mm, associated Apparatus Control gears, AC& DC Electrical machines and large size Gas Turbine of 60-200 MW. HEEP Hardwa r contributes about 44% of Indias total installed capacity for power generation w ith total capacity of Thermal, Nuclear & Hydro Sets of over 45000MW currently wo rking at a Plant Load Factor of 76% and Operational Availability of 86%. Inspite of acute recession in economy, BHEL Hardwar bagged recent orders worth 1500 Cro res including repeat orders for Suratgarh-5, Kota-6, Raichur-7, Rihand-3&4 and R amagundam-7 Unit. Additionally, Mejia-4, Panipat-7&8, Maithon and Bhatinda are i n pipeline. HISTORICAL PROFILE: The construction of heavy electrical equipment Plant commenced in Oct.1963after in do-soviet technical co-operation agreement in Sept.1959The first product to roll o ut from the plant was an electric motor in January 1967.This was followed by fir st 100 MW Steam Turbine in Dec.1969and first 100MW Turbo Generator in August 197 1.The plants break even was achieved in March 1974.BHEL went in for technical colla boration with M/s Siemens, Germany to undertake design and manufacture to large size thermal sets upto a unit rating of 1000 MW in the year 1976.First 200 MWTG set was commissioned at Obra in 1977.The continuum of technological advancement subsequently saw the commissioning of 500 MW TG Set in 1984 .The technical coope ration of Gas Turbine manufacture was also signed with M/s Siemens Germany.First 150 MW ISO rating gas Turbine was exported to Germany in Feb1995.Our 250 MW therm al set up at Dahanu Plant of BSES made a history by continuous operation for ove r 150 days and notching up a record plant load factor greater than 100%. MAJOR COMPETITORS OF BHEL 14

1. ELECTRO CONSULT 2. ABB 3. BEEHTEL 4. BLOCK & NEATCH 5. GENERAL ELECTRIC 6. RA YTHEON 7. WESTINGHOUSE 8. CNMI & EC 9. SANGHAI ELECTRIC CO 10. GEC-ALSTHOM 11. E LECTRIM 12. FRANCO TOSI 13. FUJI 14. HITECHI 15. MITSUBISHI 16. TOSHIBA 17. ROLL S ROYCE 18. SIEMENS ITALY SWITZERLAND USA USA USA USA USA CHINA UK UK POLAND FRANCE JAPAN JAPAN JAPA N JAPAN GERMANY GERMANY CUSTOMERS 15

Karnath Gumti Bhandardara-1 Subbal Sindh Kali nadi Stage-1 Chibro Ukai Chennai T illari Kadamparai EXPORTS Devighat Bhumibol Pattani Kulikhani Govt. of J & K Govt. of Tripura Govt. of Maharashtra Govt. of J & K Karnataka po wer corporation Ltd. UP Electricity Board Gujrat Electricity Board Govt. of J & K Govt. of Maharashtra Tamilnadu Electricity Board

Govt. of Nepal Electricity Generating Authority, Thailand Electricity Generating Authority, Thailand Govt. of Nepal CONTRIBUTION TO POWER SECTOR Today the power sector plays a very important role in building any Nation. It helps the country to develop its economy and the life style of society. BHEL contributes 79% of the national power generation. In whi ch 44% contribution is made only by BHEL Hardwar, 35% contribution is made by BH EL other than Hardwar unit and rest 21 % contribution made by other companies. 16

TOTAL QUALITY FOCUS: To face the increased competition from MNCs (due to liberalization policy of Gov ernment) in early 90s and to enter European market we moved towards ISO 9000 Cert ification. Concept of Business Excellence through EFQM Model was launched in ent ire BHEL on pilot scale in Oct.1995 In 1997 HEEP launched TQM in the entire Plant and since then Self-Assessment is done every year in September. Based on feedbac k Report of Assessment, critical success factors are identified and TQ action pl ans are drawn. The philosophy of ISO 9001, TQM and ISO 14001 has been integrated BHEL Hardwar for ultimately achieving BUSINESS EXCELLENCE. HEEP Hardwar plant is accredited for ISO 9001 and ISO 14001 and is now on March towards TQM.5-S was la unched in March 1999 in a big way and now it has become a way of life in the org anisation. In 2000 HEEP applied for CII-EXIM Business excellence award and site visit was conducted Bu CII team in Seot.2000.Cii feedback has gone a log way in c arrying out further improvement plans and giving a structured thrust to TQM move ment In July 2001, Units TQ Council reviewed the TQ Action Plans 2001-02 for its effectiveness and impact on accelerating the pace of improvement and consequent TQ Score. Executive Director laid the challenge of achieving the TQ score of 650 .With an objective to bring awareness about he CIIEXIM Business Excellence Model amongst the Sr. Executives, the first `Top Management TQM Workshops held at Rishik esh during oct.2001Executive Director who is TQ Assessor also, himself steered t he Workshop with assistance from some experienced TQ Assessor of HEEP. It follow ed by second Top Management TQM Workshop steered again by Ed was held at HRDC on Oct29,2001.Subsequantly the third Top Management TQM Workshop was held in Nov2001 ,where-in Sr. Counsellor, CII deliberate the detail on Best practices of TATA ST EEL-the winner of `CII-EXIM Business Excellence Award 2000.Simultaneously ,TQ Asses sors training program for the select group of young managers(to be developed as Think Tanks)was organized in Nov2001.To give further boost Apex Group was formed. Apex Group developed Roadmap to Business Excellence based on Criteria Linkage of CII-EXIM Business Model and the initiatives taken at Hardwar was drawn by the gr oup and it was widely circulated amongst the employees through special issue of Hardwar Current in April 2002.It followed by JBE workshop of Apex TQM Group held at Tehri on June 30 and July 1,02 where-in following business policy and critic al factors was evolved. 17

BUSINESS POLICY: In-line with Companys Vision, Mission and values, we dedicate ourselves to sustain ed growth with increasing positive Economic Value Addition and Customer focussed business leadership in the Power and Industry Sector. CENTRAL FOUNDRY FORGE PLANT The Central Foundry Forge Plant was set up at Hardwar with French collaboration. The construction started in 1974 and production was commenced in 1976.This plan t has in-built high degree of sophistication normally associated with much large r plants and has successfully developed various intricate castings and forgings which were imported earlier. CFFP has successfully manufactured various types of steels, e.g., creep resistant steels, heat resistant steels, stainless steels, armor steels etc. per Indian and International standards. CFFP has been supplyin g sophisticated castings used in power sector e.g., steam turbine castings, turb o generator press rings, hydro turbine Kaplan blades and Francis runners, compre ssor castings etc. The castings have also been manufactured for Defense, Nuclear , Chemical and steel sectors. Critical Forgings manufactured by CFFP include: HP , IP and LP rotors and discs etc., from steam turbines, shafts, pole and plates, rotor bush, thrust collars etc., for hydro sets and jackets and discharge cover for pumps besides various types of critical forgings for defense, nuclear, stee l, cement and machine building industries. CFFP is further upgrading and augment ing its facilities in the high growth and high technical areas. Most of the cast ings and forgings produced by CFFP are of import substitution nature. CFFP has a lso exported motor frame and steam turbine castings and forgings to CIS and Germ any. CFFP has also won the National award for import substitution. It has been r ecognized as a well known steel maker-Foundry and Forge Master by Indian Boiler Board. The American Bureau of Shipping has also approved CFFP for the manufactur e of castings and forgings for ship building industry. FINANCIAL PROFILE OF BHEL 18

BHELs LAST 5 YEAR SUMMARY TURNOVER VALUE ADDED PBT DEBTORS CURRENT ASSETS,LOAN AN D ADVANCES CURRENT 14193.45 10130.08 LIABILITIES & PROVISION NET WORKING 6119.52 6200.68 CAPITAL INTERPRETATION In last five years BHELs Turnover increased from 7482.22crores in 2002-03 to 18738.95crores in 2005-06. The increase in % is 150.44; it is the res ult of turnover and profit. Its Value Added has also showed a continuous increas ed from 3247.50crores to 7182.27 in 2002-03 to 2006-07 increase % being 121.16. Its debtors showed an increasing trend, it continuously increased from 4075.78cr ores in 2002-03 to 9695.82 in 2006-07, 137.89 being the overall increase %. Curr ent Assets, Loans and Advances increases from 8348.28crores in 2002-03 to 20312. 97crores in 2006-07, increase in % is 143.3. Current Liabilities and Provision h as shown a continuous increase from 4676.93crores in 2002-03 to 14193.45crores i n 2006-07. Increase in % is 203.47. Net working capital increases from 3671.45cr ores in 2002-03 to 6119.52crores in 2006-07, increase % being 66.67. After viewi ng above data, we can say that overall performance of BHEL in last five years is quite satisfactory and it is continuously heading towards improvement. 2006-07 18738.95 7182.27 3736.07 9695.82 20312.97 2005-06 14525.49 5682.80 2564.40 7168.06 16330.76 2004-05 10336.4 4254.00 1581.60 5972.12 13342.96 8322.22 5020.74 2003-04 8662.47 3680.00 1014.80 4608.48 10424.69 6244.66 4180.03 (In crores) 2002-03 7482.22 3247.50 802.40 4075.78 8348.28 4676.93 3671.45 19

SHAREHOLDING PATTERN OF BHEL SL NO. A B a) b) c) d) CATEGORY PROMOTER S HOLDING PRESIDENT OF INDIA NON PROMOT ER S HOLDING MUTUAL FUNDS AND UTI BANKS,FINANCIAL INSTITUTIONS AND INSURANCE COM PANIES FOREIGN INSTITUTIONAL INVESTORS OTHERS 4.79 2.52 22.42 2.55 5.08 3 19.49 4.71 2.81 1.8 0.10 0 0 %AGE OF SHAREHOLDING 2005-06 67.72 2006-07 67.72 PRIVATE CORPORATE BODIES 1.37 INDIAN PUBLIC 1.09 NRIs AND OCBs 0.06 PIE CHART SH OWING SHAREHOLDING PATTERN OF BHEL FOR THE TRUST 0 YEAR 2006-07 SHARE IN TRANSIT 0.03 PRESIDENT OF INDIA MUTUAL FUNDS AND UTI BANKS,FINANCIAL INSTITUTIONS AND INSURANCE COMPANIES INVEST ORS 5% PIE CHART SHOWING SHAREHOLDING PATTERN OF BHEL FOR THE FOREIGN INSTITUTIONAL 22% YEAR 2006-07 OTHERS PRESIDENT OF INDIA 2% 5% 5% 22% 66% MUTUAL FUNDS AND UTI BANKS,FINANCIAL INSTITUTIONS AND INSURANCE COMPANIES FOREIG N INSTITUTIONAL INVESTORS OTHERS 2% 5% 66% 20

PIE CHART SHOWING SHAREHOLDING PATTERN OF BHEL FOR THE YEAR 2005-06 PRESIDENT OF INDIA MUTUAL FUNDS AND UTI 22.42, 22% 2.55, 3% BANKS,FINANCIAL INSTITUTIONS AND INSURANCE COMPANIES FOREIGN INSTITUTIONAL INVES TORS 2.52, 3% 4.79, 5% 67.72, 67% OTHERS TRAINING 21

Employee training is a specialized function and is one of the fundamental operat ive functions of Human Resource Management. Acc to FLIPPO, Training is the act of increasing the knowledge and skill of an employee for doin g a particular job. It is a short-term educational process and utilizing a systematic and organized procedure by which employees learn technical knowledge and skills for a definite purpose. Training refers to the organizations efforts to improve an individuals a bility to perform a job or organizational role. It can be defined as a learning experience in which it seeks a relative permanent change in an individual that w ould improve his ability to perform the job. DIFFERENCE BETWEEN TRAINING AND DEV ELOPMENT Training and development go hand in hand and are often used synonymousl y but there is a difference between them. Training is the process of learning a sequence of programmed behavior. It is an application of knowledge. It gives peo ple an awareness of the rules and procedures to guide their behavior. It intends to improve their performance on the current job and prepares them for an intend ed job. Development is a related process. It covers not only those activities, w hich improve job performance, but also those, which bring about growth of the pe rsonality. It helps individual in the progress towards maturity and actualizatio n of potential capabilities so that they can become not only good employees but better human beings. PRINCIPLES OF TRAINING 22

MOTIVATION Learning is enhanced when the learner is motivated. Learning experience must be designed so learners can see how it will help in achieving the goals of the orga nization. Effectiveness of training depends on motivation. FEEDBACK Training requires feedback. It is required so the trainee can correct his mistak es. Only getting information about how he is doing to achieve goals, he can corr ect the deviations. REINFORCEMENT The principle of reinforcement tells the behaviors that are positively reinforce d are encouraged and sustained. It increases the likelihood that a learned behav ior well be repeated. PRACTICE Practice increases a trainees performance. When the trainees practice actually, t hey gain confidence and are less likely to make errors or to forget what they ha ve learned. INDIVIDUAL DIFFERENCES Individual training is costly. Group training is advantageous to the organizatio n. Individuals vary in intelligence and aptitude from person to person. Training must be geared to the intelligence and aptitude of individual trainee. 23

OBJECTIVES OF TRAINING TO INCREASE PRODUCTIVITY An instructor can help employees increase their level of performance on their as signment. Increase in human performance leads to increase in the operational pro ductivity and also the increase in the profit of the company. TO IMPROVE QUALITY Better-trained workers are less likely to make operational mistakes. It can be i n relationship to the company or in reference to the intangible organizational e mployment atmosphere. TO HELP A COMPANY FULFILL ITS FUTURE PERSONNEL NEEDS The organizations having good internal training and development programmes will have to make less changes and adjustments. When the need arises, vacancies can b e easily staffed. TO IMPROVE ORGANIZATIONAL CLIMATE An endless chain of positive reactions result from a well planned training progr amme. TO IMPROVE HEALTH AND SAFETY Proper training can prevent industrial accidents. A safer atmosphere leads to mo re stable attitudes on part of the employees. PERSONAL GROWTH Employees on a personal basis gain individually from their exposure to education al expressions. Training programmes give them wider awareness and skills. 24

NEED FOR TRAINING To impart to the new entrants the basic knowledge and skills they need for defin ite tasks. To assist employees to function more effectively in their present pos itions by exposing

them to new concepts. To build a line of competent people and prepare them to oc cupy more responsible

positions. To reduce the supervision time, wastage and spoilage of new material. To reduce the defects and minimize the industrial accidents. To ensure the econ omical output of the required quality. To prevent obsolescence. To promote indiv idual and collective morale, responsibility and cooperative attitudes etc.

25

TYPES OF TRAINING Training is required for several purposes. Accordingly training programmes may b e of the following types: Orientation training: Induction or orientation trainin g seeks to adjust newly appointed employees to the work environment. Every new e mployee needs to be made fully familiar with his job, his superiors and subordin ates and with the rules and regulations of the organization. Induction training creates self-confidence in the employees. It is also knows as pre-job training. It is brief and informative. Job training: It refers to the training provided wi th a view to increase the knowledge and skills of an employee for performance on the job. Employees may be taught the correct methods of handling equipment and machines used in a job. Such training helps to reduce accidents, waste and ineff iciency in the performance of the job. Safety training: Training provided to min imize accidents and damage to machinery is known as safety training. It involves instruction in the use of safety devices and in safety consciousness. Promotion al training: It involves training of existing employees to enable them to perfor m higher-level jobs. Employees with potential are selected and they are given tr aining before their promotion, so that they do not find it difficult to shoulder the higher responsibilities of the new positions to which they are promoted. Re fresher training: When existing techniques become obsolete due to the developmen t of better techniques, employees have to be trained in the use of new methods a nd techniques. With the passage of time employee may forget some of the methods of doing work. Refresher training is designed to revive and refresh the knowledg e and to update the skills of the existing employees. Short-term refresher cours es have become popular on account of rapid changes in technology and work method s. Refresher or re-training programmes are conducted to avoid obsolescence of kn owledge and skills. 26

METHODS OF TRAINING METHODS OF TRAINING ON- THE- JOB METHODS OFF- THE- JOB METHODS Fig - Methods of Training ON-THE-JOB TECHNIQUES On the job techniques enables managers to practice managem ent skills, make mistakes and learn from their mistakes under the guidance of an experienced, competent manager. Some of the methods are as: Job Rotation: It is also referred to as cross straining. It involves placing an employee on differe nt jobs for periods of time ranging from a few hours to several weeks. At lower job levels, it normally consumes a short period, such as few hours or one or two days. At higher job levels, it may consume much larger periods because staff tr ainees may be learning complex functions and responsibilities. Job rotation for managers usually involves temporary assignments that may range from several mont hs to one or more years in various departments, plants and offices. Job rotation for trainees involves several short-term assignments, that touch a variety of s kills and gives the trainees a greater understanding of how various work areas f unction. For middle and upper level management, it serves a slightly different f unction. At this stage, it involves lateral promotions, which last for one or mo re years. It involves a move to different 27

work environment so that manager may develop competence in general management de cisionmaking skills. Enlarged and enriched job responsibilities: By giving an em ployee added job duties, and increasing the autonomy and responsibilities associ ated with the job, the firm allows an employee to learn a lot about the job, dep artment and organization. Job instruction training: It is also known as step-bystep training. Here, the trainer explains the trainee the way of doing the jobs, job knowledge and skills and allows him to do the job. The trainer appraises th e performance of the trainee, provides feedback information and corrects the tra inee. In simple words, it involves preparation, presentation, performance, and t ryout and follow up. Coaching: The trainee is placed under a particular supervis or who functions as a coach in training the individual. The supervisor provides the feedback to the trainee on his performance and offers him some suggestions f or improvement. Often the trainee shares some duties and responsibilities of the coach and relives him of his burden. A drawback is that the trainee may not hav e the freedom or opportunity to express his own ideas. Committee assignments: He re in, a group of trainees are given and asked to solve an actual organizational problem. The trainees solve the problem jointly. This develops team work and gr oup cohesiveness feelings amongst the trainees. OFF-THE-JOB TRAINING It includes anything performed away from the employees job area or immediate work area. Two broad categories of it are: 28

 IN HOUSE PROGRAMMES These are conducted within the organizations own training fa cility; either by training specialists from HR department or by external consult ant or a combination of both. OFF-SITE PROGRAMMES It is held elsewhere and sponsored by an educational institution, a professional association, a government agency or an independent training and development fir m.The various off- thejob-training programmes are as follows: Vestibule training : Herein, actual work conditions are simulated in a classroom. Material, files a nd equipment those are used in actual job performance are also used in training. This type of training is commonly used for training personnel for clerical and semiskilled jobs. The duration of this training ranges from few days to a few we eks. Theory can be related to practice in this method. Role-playing: It is defin ed as a method of human interaction that involves realistic behaviour in imagina ry situations. This method involves action doing and practice. The participants play the role of certain characters, such as production manager, HR manager, for eman, workers etc. This method is mostly used for developing interpersonal inter actions and relations. Lecture method: The lecture is a traditional and direct m ethod of instruction. The instruction organizes the material and gives it to the group of trainees in the form of a talk. To be effective, the lecture must moti vate and create interest among the trainees. An advantage of this method is that it is direct and can be used for a large group of trainees. Conference or discu ssion: It is a method in training the clerical, professional and supervisory per sonnel. It involves a group of people who pose ideas, examine and share facts an d data, test assumptions and draw conclusions, all of which contribute to the im provement of job performance. It has an advantage that it involves twoway commun ication and hence feedback is provided. The participants feel free to speak in s mall groups. Success depends upon the leadership qualities of the person who lea ds the group. 29

 Programmed instruction: This method has become popular in recent years. The subject matter to be learned is presented in a seri es of carefully planned sequential units. These units are arranged from simple t o mere complex levels of instructions. The trainee goes through these units by a nswering questions or filling the blanks. This method is expensive and time cons uming. EXECUTIVE DEVELOPMENT PROCESS Executives are the people who shape the policies, make the decisions and see the ir implementation in any business organization. They are the president, the vice -president, the managing director, works manager, plant superintendent, controll er, treasurer, office managers, engineers, directors of functions such as purcha sing, research, personnel, legal, marketing etc. Executive development may be st ated as the application of planned efforts for raising the performance standards of high level managers, and for improving the attitudes and activities that ent er into or influence their work and their work relations. EXECUTIVE DEVELOPMENT PROCESS Following are the steps, which are involved in the development process o f executives: executives. STRENGTH AND WEAKNESS An inventory of managers is take n with special focus on their strength in terms of managerial skills and other a ttributes. Their unique capabilities, specialist knowledge and achievements are listed down against each. A comparison with the requirement of the organization will bring the gap in knowledge and skills of existing executive. This is the we akness. LONG- RANGE PLANS Here the management prepares long-term training and de velopment plans for their executives, which include the annual training targets, the annual budgets and the specific area of training. SHORT- TERM PROGRAMME OBJ ECTIVES The first and foremost step is to define the long- term objectives of tr aining and development of 30

This programme specify the duration, starting time, ending time, number of execu tives being trained, identify the resources etc. IMPLEMENTATION The training pro gramme envisaged before is put into operation. The actual training is initiated by proper timetable and other arrangements.

EVALUATION In this step, the effectiveness of the executive training programme is evaluated by measuring the improved performance of executives who underwent the programme , on their job. There are various criteria of measuring effectiveness such as va lidity, reliability etc. EVALUATING THE EFFECTIVENESS OF TRAININ An Investor in People evaluates the investment in training and development to as sess achievement and improve future effectiveness. Kearns (1994) suggests that t here are four groups of `measures' of training effectiveness, which are used by orga nization. The groups are as follows: No Measurement Subjective Measures Qualitat ive Measures Objective Measures The first group, in which no real measurement occurs, includes activities undert aken as an Act of Faith, where no form of measurement is attempted, such as initia tives to improve communications in organization, which seem to make people feel good and appear to have worked in some intangible manner. The second group inclu des subjective responses from trainees/course delegates, as exemplified by the Ha ppy Sheet. The main question asked is about how individuals feel after the traini ng. Organizations often make the assumption that positive responses indicate tra ining success and therefore value to the organization. However, course delegates may well give strong positive 31

response scores for a number of reasons, including the presentational skills of the trainer, the quality of the venue, and the feel good factor of indulging in a creative work group, and so on. Quality measures appear to be more objective tha n the previous group, but are often flawed by subjectivity as well. They are typ ified by questionnaires asking delegates to put a value on the likely benefits of a training programme. Objective measures are the only really meaningful ones. Ho wever, they challenge the provider of training to demonstrate how their training activities feed through to the bottom line: in terms of return on investment and return on the capital employed. There has often been an assumption, in times pas t, that training somehow justifies itself, because it is all about developing peop le. However, it is incumbent on organizations to look critically at the ways in which they evaluate their training activities, lest they fall prey to the subjec t approach and are badly caught out when a rigorous analysis of all the function s of the organizations business is called for. A desirable, if not essential, cha racteristic of all training programmes is a built-in provision for evaluation. T he four main dimensions of evaluation are: EVALUATION OF CONTEXTUAL FACTORS Training effectiveness depends not only on what happens during training, but als o on what happens before the actual training and what happens after the training has formally ended. Evaluation should, therefore, be done of both the pre-train ing and post-training work. Pretraining work includes proper identification of t raining needs, developing criteria of who should be sent for training, how many at a time and in what sequence, helping people to volunteer for training, buildi ng expectations of prospective participants from training etc. Post- training wo rk includes helping the concerned managers to plan to utilize the participants tr aining, and provide the needed support to them, building linkages between the tr aining section and the line departments and so on. EVALUATION OF TRAINING INPUTS

This involves the evaluation of the training curriculum and its sequencing. 32

EVALUATION OF THE TRAINING PROCESS The climate of the training organization, the relationship between participants and trainers, the general attitude, and approaches of the trainers, training met hods, etc are some of the important elements of the training process which also needs to be evaluated.

EVALUATION OF TRAINING OUTCOMES Measuring the carry-home value of a training programme in terms of what has been achieved and how much is the main task of evaluation. This, however, is a compl ex technical and professional task. Benefits of a training programme are not obv ious and they are not readily measurable. Payoffs from training are intangible a nd rather slow to become apparent. A central problem is the absence of objective criteria and specific definitions of relevant variables by which to measure the effectiveness either of specific programmes or changes in employee behaviour. N evertheless, the good personnel managers do make an effort to systematically app raise the benefits and results of their programmes. In job-related training, the objective is to train people for specific job skills so that their productivity may increase. Evaluation can be done either to the direct criterion of increase in output or to the indirect criteria of decrease in cost, breakage or rejects. Even more indirect are measures that point out changes in absenteeism or turnov er. The most difficult problems of evaluation lie in the area of human relations skill training, which is given to the supervisors and middle- level managers. S upervisory and managerial training programmes are, for this reason, less amenabl e to objective review procedures. Much subjectivity enters into evaluations of t hese programmes, since exact standards and criteria are hard to devise. 33

THE EVALUATION MODELS The process of evaluating the training effectiveness involves the consideration of various constraints. Many researchers have developed various methods and mode ls in order to facilitate this process. Some of the models are described as belo w: CIRO MODEL OF EVALUATION Developed originally by WARR (1978), this theoretica l model is based on evaluation being carried out at four different levels: Conte xt Evaluation: Obtaining and using information about the current operational con text i.e. about individual difficulties, organizational deficiencies etc. in pra ctice, this mainly implies the assessment of training needs as a basis for decis ion. This involves: Examining the expectations and perceptions of the people. Ex amining whether the training needs were accurately identified. Putting the speci fic training event in the wider context of other training activities. Establishi ng whether the trainers enjoyed the confidence of the trainees and whether the latter are comfortable with the level and focus of the training. Inp ut Evaluation: Determine using factor and opinion about the available human and material training resources in order to choose between alternative training meth ods. This involves: Establishing the adequacy of the resource base and its cost. Considering the choice and effectiveness of the training methods and techniques . Identifying the numbers who successfully completed the program compared with t hose who started and draw appropriate inferences. Establishing whether the train ers were perceived to be credible as far as the trainees are concerned. Establis hing whether the psychological and emotional climate of learning was appropriate . 34

Reaction Evaluation: Monitoring the training as it is in progress. This involves continuous examination of administrative arrangements and feedback from trainee s. This involves: Looking at the reactions of trainees to the content and method of training. Establishing the reaction of other people, particularly line manag ers to the early results of the training program. Discussing the views and obser vations of the trainers. Outcomes: It implies the measuring of the consequences of training. This involves: Establishing whether expectations of results were me t. Identifying whether all or some of the learning objectives were met. Finding out what were the end course views about the training. The three levels of outco me evaluation may be distinguished: Immediate Outcomes: The changes in the train ees knowledge, skills and attitude that can be identified immediately after the c ompletion of training. The aim here is to find out the extent to which positive transfer of learning has taken place from the training to the workplace. This ty pe of evaluation may be done in several ways such as behaviourally anchored rati ng scales or self repots supplemented by reports of subordinates, peers and supe rvisors or critical incidents etc. Intermediate Outcomes: These are the changes in trainees actual work behaviour, which result from training. The assumption her e is that effective training should be reflected in the trainees increased job-pr oficiency. Ultimate Outcomes: These are the changes in the functioning of part o r the entire organization, which have resulted from changes in work behaviour. F or this purpose, indexes of productivity, labour turnover etc, studies of organi zational climate and human resource accounting are taken as the ultimate results achieved by the trainee. 35

HAMBLINS MODEL Hamblin (1974) said, The purpose of evaluation is control. A well controlled train ing program is one in which the weakness and failures are identified and correct ed by means of the negative feedback and strengths and successes and corrected b y means of the positive feedback. The processes, which occur as a result of a su ccessful training programme, can be divided into 4 levels. The evaluation can be carried out at any of the following levels: Reaction Level: It measures the rea ctions of the trainees to the content and methods of the training, not the train er, and to any other factors perceived as relevant. It determines what the train ee thought about the training. Learning Level: It measures the learning attitude of the trainees during the learning period. It collects information that did th e trainees learn what was intended. Job Behavior Level: The job behavior of the trainees in the work environment at the end of the training period i.e. did the training got transferred to the job? Effect on the Department: Has the training helped the trainees in improving the departments performance? The Ultimate Level: It measures that has the training affected the ultimate well being of the organ ization in terms of the business objectives. 36

Training Measuring Techniques at Each Level O1 Reactions Objectives E1 Reaction Effects Reaction Notebooks Observers Record Reaction Forms O2 Learning Objectives E2 Learning Effects Written Exam Multiple choice Test Learning Portfolios O3 Job Behaviour Objectives E3 Job Behavior Effects Activity Sampling Interviews Questionnaires O4 Organization Objectives E4 Organization Effects Indices of Productivity Organisation Culture O5 Ultimate Value Objectives E5 Ultimate Value Effects Cost Benefit Analysis Human Resource Accounting Fig - Flowchart of Hamblins Model 37

MODEL USED IN THIS REPORT FOR EVALUATION AND RECOMMENDATIONS The Kirkpatrick Mod el establishes the effectiveness in terms of assessing the extent to which the o bjectives are met. Combining the four levels of this model and an optimum cost b enefit strategy would enable the management to ascertain the extent to which a p rogramme is contributing to the effectiveness of the organization. Therefore, th is technique is used to identify and recommend certain measures in order to impr ove the training effectiveness at BHEL. The details of Kirkpatrick Model are exp lained in the succeeding paragraph. THE KIRKPATRICK MODEL Perhaps the most influ ential approach to training evaluation was developed by D.L. KIRKPATRICK (1975) which, according to Bornbrauer (1987), despite its age and common sense approach to the subject, remains valid: because of its comprehensiveness, simplicity, and applicability to a variety of training situations. LEVEL ONE-REACTION This level in the Kirkpatrick model is seen to offer some use ful insights into the early experiences of trainees, but precisely because it is concerned with feelings and f irst reactions, the results need to be viewed with some caution. Measurement can be done through: Reaction sheets: Reaction sheets (often refereed to as `happy sh eets) should ask questions about the achievement of the course objectives, about the course material, the presentation, the activities used, the venue and the pr e-course material. Group discussion: Build in time at the end of the course for how they will take the learning forward. Have them record the main points of the discussion for you to take away. Thumbs up, thumb down: This is much focused on reaction. Ask closed questions about the training course directed to the whole group. If participants feel the answer to the question is `Yes' they give a thumbs-u p sign, if the answer is `No', its a thumbs down. You need to record the number of re sponses, positive or negative, to each question. 38

 Level Two- Learning This is the level at which new learning is generated and which requires evaluators to try to establish individuals progress towards the learning of specified skill s and competencies. Measurements can be done through: Reaction sheets: Questions about what participants feel they have learnt during the course can be included on the reaction sheets. Post-courses review: Delegates should meet with their l ime manager soon after the course to discuss what learning has taken place and h ow this will be applied. They should then meet at agreed intervals to review how much progress is being made. Action plans: By requiring delegates to complete a ction plans at the end of course, we imply that we are expecting them to impleme nt some learning from the course and make some changes in the way they work. LEV EL THREE- EFFECTS ON INDIVIDUAL PERFORMANCE Recognizing that the purpose of training is to create new job capabilities means that evaluation must be extended to the working environment. Above all, this le vel of evaluation draws attention to the fact that training does not end at the completion of the training programme, but has to embrace issues such as the tran sfer of training, support for the use of new skills and competences and the supp ort provided by line managers. Measurement can be done through: Post- course rev iew with line manager: Delegates should meet with their lime manager soon after the course to discuss what learning has taken place and how this will be applied . They should then meet at agreed intervals to review how much progress is being made. Follow-up questionnaire: The trainer circulates a questionnaire to all de legates and their managers asking questions about how the learning from the cour se is being applied. Follow-up calls: The trainer, or a nominated person, choose s a random sample of delegates from a course and then contacts them and their li ne managers to ask a series of questions about the application of learning from the course. Re-testing: If the training is very skills- based and has culminated with a test, it is possible (although time-consuming) to re-test delegates on r egular basis and then to retrain if necessary. 39

 LEVEL FOUR- EFFECTS ON ORGANIZATIONAL PERFORMANCE The ultimate level and one that represents an attempt to establish what is often described as the impact of training on the bottom line must be measured. As with level three evaluations, in order to assess the effects of training on an organi zation, measures need to be taken prior to the training being carried out. Examp les of such measures are: Staff attitude surveys Profit levels Wastage Levels of consumables used Accidents and damage rates Customer complaints Working rates Er ror rates Work outstanding Task completed per hour/day/week Self-assessment of p erformance by team members 40

TRAINING PROGRAMMES IN BHEL BHEL follows the philosophy to establish and build a strong performance driven c ulture with greater accountability and responsibility at all levels. To that ext ent the Company views capability as a combination of the right people in the rig ht jobs, supported by the right processes, systems, structure and metrics. The C ompany organizes various training and development programmes, both in-house and at other places in order to enhance the skills and efficiency of its employees. These training and development programmes are conducted at various levels i.e. f or workers and for officers etc. VARIOUS TRAINING PROGRAMMES ORGANISED FOR THE W ORKERS IN BHEL:S.no 1 2 3 4 5 6 7 8 9 10 11 12 13 Training Programmes Duration I SO 9000 and ISO 14000 refresher 1 day programme Personality development Worker t eachers day ISO 14000 awareness National safety day Fire fighting Workers particip ation management Educational trip to 2 days 1 day day 1 day day in 3 days Conduc ted by Worker teachers Worker teachers Worker teachers Worker teachers Worker te achers Security officer Central board of workers association Worker teachers Kaiz en institute Worker teachers Worker teachers Vipassana Sadhna Sansthan Shakuntal a Anand Nainital, 7 days 5 days 1 day 1 day 2 days Rishikesh, Dehradun Gemba- Kaizen workshop Security and fire fighting Positive a pproach Vipassana meditation Workers children- Workshop for 1 day young people, personality development TRAINING IN BHEL BHEL provides training to all its employees as per the policy of the organizatio n. 41

PURPOSE OF TRAINING: SCOPE: To ensure availability of trained manpower. All categories of employees FLOW CHART OF TRAINING PROCEDURE Identification of Needs Preparation of Training Plan Imparting Training Feedback Induction Training Training Effectiveness Fig: - The training procedure 42

IDENTIFICATION OF NEEDS MANAGEMENT STAFF The Performance Appraisal form of the organization has a sectio n in which the training and development needs are filed up. The person whom the concerned employee is reporting fills the Performance Appraisal form annually. S uch person may be a branch head or department head. Identification of training n eed is done at the Executive Office (EO) level for the managers through the Perf ormance Appraisal forms annually and the records are maintained at the Executive Office. Managers are nominated for the various training courses by the Executiv es Office. Managers may also be nominated to certain training programmes from the branch if the subjects covered are found to be of interest or if they offer a le arning opportunity in some emerging areas of knowledge. Training needs for the d epartment through their Performance Appraisal forms identifies the officers, whi ch are filled in by the department head. The Performance Appraisal forms thus gi ve the emerging training needs. This exercise is carried out annually. STAFF AND WORKERS Training needs for staff and workers are identified based on: Companys s trategy and policy. Organizational Thrust Areas. New Emerging Areas. This together gives the consolidated system of needs that is prepared by the Per sonnel Officer and approved by the Department Head. PREPARATION OF TRAINING PLAN On the basis of identified training needs, the annual training calendar is prep ared by the Personnel officer and approved by the Personnel Head. Annual Trainin g Budget is prepared by Branch Personnel Head and is approved by Executive Offic e. This gives the final list of training 43

activities in a particular year. It is attempted to carry out all the programmes to fulfill the identified needs. The Head of the Personnel Department monitors the actual training conducted vis--vis the identified training needs on a monthly basis. IMPARTING OF TRAINING Actual training is imparted with the help of in-ho use and outside agencies. The selection of these agencies is done on the basis o f reputation; programmes offered by them, past experience and feedback received from the earlier participants. Training is also imparted by nominating the conce rned employee for an external training programme. All records of the training ar e maintained at branch as per Record of Training in the Personnel folder and the same is intimated to the Executive Office Personnel through the Monthly Personn el Report. FEEDBACK A feedback is taken from the participants through a question naire on the programme and their impressions in order to further improve upon th e same. There are three such questionnaires available and one of these is used d epending upon the nature of the training programme and the level of participants . Also, a person from the personnel department sits through the final session of the programme and takes the verbal feedback about the programme. INDUCTION TRAINING STAFF/ OFFICERS/ MANAGERS This is carried out as the very fir st step for any new entrant into the branch at the Staff/ Officer/ Manager level . The department prepares a schedule for the employee as per which he is require d to spend specific time in each department. During such period, he is reporting to the respective department head. The objective of the induction programme is to familiarize the participant to the function of different department. The copi es of the same are sent to the General Manager and all concerned. At the end of the induction, the trainee has to submit a report to the Personnel Department. 4 4

WORKERS In the case of a new entrant, he is called in General shift for 2 days f or training under a senior worker to familiarize him with the welfare facilities like card punching, canteen, public conveniences, rules and regulations, standi ng orders, shift timings, spell outs, medical facilities, leave procedures etc. After two days of training, he is deployed in the concerned department. The Pers onnel Officer organizes this. MANAGEMENT TRAINEES TRAINING Management trainees ar e given a fortnight of induction programme. Corporate HR advises it as per Manag ement Trainee Training programme designed by them. Thereafter, a detailed traini ng programme is carried out whereby the incumbent is to understand in depth of w orking of each department at various locations as per the programme given by the Corporate HR. Corporate HR maintains all relevant records pertaining to Managem ent Trainees training at Bangalore. TRAINING EFFECTIVENESS For each training prog ramme conducted in-house for BHEL Delhi branch personnel, a training brochure is developed. The brochure developed consists of the following information: Progra mme objectives: Need of the training and what are the objectives that this train ing aims to achieve, what likely outcomes are expected to come out of impact of this training. Programme content: Topics being covered during the training. -Met hodology adopted. -Programme faculty. -Personnel to be covered. -Training method ology. -Training effectiveness criteria and scale. The training effectiveness is measured by measurement of the achievement of the objectives. This lists down t he measurement indicators, achievement of which will ensure that programme objec tives are achieved. A person gets nominated for the training programme in the fo llowing two ways: a) Training programme flowing from the training needs. 45

b) Training programme for testing out the training/ increased awareness/ general information/ omnibus training types etc. TRAINING PROGRAMMES FLOWING FROM TRAINING NEEDS: The programmes are divided into three broad categories: Functional Behavioral Ge neral/ Omnibus programmes 1. Functional: The outcome of the training is measured by comparing the data pre-training and post-training. A scale is developed for measuring the effectiveness of training based on the % achievement of the object ives. 2. Behavioral: The effectiveness of the training of this nature is measure d annually. This is seen through the training need identification for the coming year for the employee. If the training need is repeated there, then the trainin g provided is taken as ineffective. If the training need is repeated but with fo cus on a part of the need, then the training is partially effective. If not repe ated, then the training is effective. 3. General: These are the training needs f lowing directly from the organizational needs. Examples of these can be ISO 9000 training, ISO 14000 training and any awareness training. These are omnibus trai ning programmes, which are run for a large number of employees. The effectivenes s of the training is measured by: - Achievement of those organizational objectiv es within the time lines. - Number of audit issues raised on the areas covered i n the training. - Any other such thing as defined in the training brochure. The effectiveness of the outside training programme is measured on the same line as above. However, no detailed brochure is prepared for the same. The measurement c riterion for the programme is defined in the beginning of the programme and effe ctiveness measured against the same. 46

A consolidated effectiveness report of the training programme is prepared at the end of the year. The programmes that are found to be ineffective are reworked. Training programme for testing out the training Also there are training programmes, which are not flowing directly from the trai ning needs measurement of effectiveness of the training is not needed to be meas ured. TRAINING OF AN OFFICER Identification of Training needs Approval from the Personnel Department Consolidation of Training needs Annual Training Budget Annual Training Calendar Imparting Training Collecting Feedback for Further Improvement Monitoring of Actual Training vis-a-vis the Identified needs Fig. Flowchart for Training of an Officer 47

TRAINING OF A WORKER Company Strategy and Policy Approval from the Personnel Annual Department TrainingFO REIGN INSTITUTION AL INVESTORS Organizational Thrust Areas Identification Of Training needs 5% a22% u g2% g a5% tMUTUAL n66% FUNDS AND gYEAR UTI 2006-07 PRESIDENT OF INDIA PIE New Emerging Areas Consolidation Of Training needs Annual Training Calendar CHART SHOWING SHAREHO LDING Collecting PATTERN Feedback for OF BHEL Further Trai ning FOR THE Monitoring of Actual vs the Identified Training needs. Fig - Flowchart for Training of a Worker 48

RESEARCH OBJECTIVES OBJECTIVES OF THE STUDY The first & foremost step in any research work is to ide ntify the problems or objectives on which the researcher has to work on. There a re two types of objectives met in this study, as explained MAJOR OBJECTIVE To an alyze the existing training practices, its effectiveness and recommend measures to improve the training practices in BHEL. MINOR OBJECTIVES To study the frequen cy of training, training methods and their effects on the trainees and recommend certain measures for improvement. To understand the present practices enforced in respect of training at the personnel department and recommend any changes if necessary. To take feedback and analyze the level of satisfaction amongst the em ployees in respect of training activities and suggest alternatives. RESEARCH METHODOLOGY Every project work is based on certain methodology, which is a way to systematic ally solve the problem or attain its objectives. It is a very important guidelin e and lead to completion of any project work through observation, data collectio n and data analysis. According to Clifford Woody, Research Methodology comprises of defining & redefining problems, collecting, organizing &evaluating data, maki ng deductions &researching to conclusions. Accordingly, the methodology used in t he project is as follows: Defining the objectives of the study Framing of questi onnaire keeping objectives in mind (considering the objectives) Feedback from th e employees Analysis of feedback Conclusion, findings and suggestions. 49

SELECTION OF SAMPLE SIZE In order to take a reasonable sample size and not to disturb the functioning of the organization, a sample size of reasonable strength of the Company has been t aken in order to arrive at the present practices of training in the Company. Acc ordingly, 20 officers and 40 workers have been selected at random from all the d epartments of the organization and feedback forms (questionnaire) have been obta ined. The data has been analyzed in order to arrive at present training practice s in the organization. SAMPLING TECHNIQUE USED The technique of Random Sampling has been used in the analysis of the data. Rand om sampling from a finite population refers to that method of sample selection, which gives each possible sample combination an equal probability of being picke d up and each item in the entire population to have an equal chance of being inc luded in the sample. This sampling is without replacement, i.e. once an item is selected for the sample, it cannot appear in the sample again. DATA COLLECTION To determine the appropriate data for research mainly two kinds of data was coll ected namely primary & secondary data as explained below: PRIMARY DATA Primary data are those, which were collected afresh & for the first time and thu s happen to be original in character. However, there are many methods of collect ing the primary data; all have not been used for the purpose of this project. Th Questionnaire Informal Interviews Observation e ones that have been used are: 50

SECONDARY DATA Secondary data is collected from previous researches and literature to fill in t he respective project. The secondary data was collected through: Text Books Articles Journals Websites STATISTICAL TOOLS USED The main statistical tools used for the collection and analyses of data in this project are: Pie Charts Tables

LIMITATIONS OF THE STUDY The following are the limitations of the study: The sample size was small and he nce the results can have a degree of variation. The response of the employees in giving information was lukewarm. Organizations resistance to share the internal information. Questionnaire is subjected to errors. SCOPE OF THE STUDY Training Effectiveness is the process wherein the management finds out how effec tive it has been at training and developing the employees in an organization. Th is study gives some suggestions for making the present training and development system more effective. It gives organization the direction, how to deal differen tly with different employees. It identifies the training & development needs pre sent among the employees. 51

MANAGERIAL USEFULNESS OF THE STUDY The effectiveness of the training programmes can be established through this stu dy. This study helps to understand, analyze & apply the core concepts of trainin g in an organization. Managers would be able to identify the need of training fo r its employees. Managers would know what employees think of the training and de velopment programmes and make changes if necessary. 52

DATA ANALYSIS 1) How many training programmes have you attended in last 5 years? No. of Programmes 0-5 6-10 10-15 More than 15 Total No. of Respondents 8 5 4 3 2 0 % of Responses 40% 25% 20% 15% 100% INTERPRETATION 45% of the officers have attended 6-15 training programmes in the last 5 years, which is an indication of an effective training policy of the organization. Howe ver, 40% of the officers have attended only 0-5 training programmes, which needs to be evenly monitored by the organization. 53

2) The programme objectives were known to you before attending it. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 5 7 3 1 4 20 % of Responses 25% 35% 15% 5% 20% 10 0% 54

INTERPRETATION 35% of the respondents moderately agree to the fact of knowing th e training objectives beforehand, in addition to 25% who strongly agree. But a s mall population disagrees as 20% strongly disagree to this notion. Training obje ctives should therefore be made known compulsorily before imparting training in the organization. 3) The training programme was relevant to your developmental needs. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 6 8 3 2 1 20 % of Responses 30% 40% 15% 10% 5% 10 0% INTERPRETATION 55

70% of the respondents feel that the training programmes were in accordance to t heir developmental needs. 15% respondents could not comment on the question and 15% think that the programmes are irrelevant to their developmental needs and th e organization must ensure programmes that satisfy the developmental needs of th e officers. 4- The period of training session was sufficient for the learning. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 6 4 4 3 2 20 % of Responses 31% 21% 21% 16% 11% 1 00% INTERPRETATION 52% respondents feel that the time limit of the training programm e was adequate but 25% feel that it was insufficient. Also, 21% could not commen t on the question. All the respondents though felt that increase in time limit o f the programmes would certainly be beneficial and the organization should plan for this to be implemented in the near future. 56

5) The training methods used during the training were effective for understandin g the subject. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total No. of Respondents 4 8 3 3 2 20 % of Responses 20% 40% 15% 15% 10% 100% INTERPRETATION 40% ing the programmes o this notion. The e effectiveness of of the respondents believe that the training methods used dur were helpful in understanding the subject, yet 25% disagree t organization should use better, hi-tech methods to enhance th the methods being used during the training programmes. 57

6) The training sessions were exciting and a good learning experience. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 5 8 2 3 2 20 % of Responses 25% 40% 10% 15% 10% 1 00% 58

INTERPRETATION 65% respondents believe that the training sessions were exciting and a good learning experience. 10% respondents could not comment on this while 25% differ in opinion. They feel that the training sessions could have been more exciting if the sessions had been more interactive and in line with the current practices in the market. 7) The training aids used were helpful in improving the overall effectiveness of the programme. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 4 5 7 3 1 20 % of Responses 20% 25% 35% 15% 5% 10 0% 59

INTERPRETATION 40% of the respondents believe that the training aids used were h elpful in improving the overall effectiveness, yet 20% disagree to this notion. 35% respondents did not comment on the issue. Yet the total mindset of the respo ndents was that the organization should use better scientific aids to enhance th e presentation and acceptance value of the training programme. 8) The training was effective in improving on- the- job efficiency. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 3 6 4 4 3 20 % of Responses 15% 30% 20% 20% 15% 1 00% 60

INTERPRETATION 45% respondents believe that the training programmes increase the ir job efficiency but 35% disagree to this. The view of the respondents were tow ards having more technological and current topics for the training programmes wh ich could help them satisfy their creative urge and simultaneously increase thei r on-the-job efficiency. 9) In your opinion, the numbers of training programmes organized during the year were sufficient for officers of BHEL. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 2 3 5 2 8 20 % of Responses 10% 15% 25% 10% 40% 1 00% 61

INTERPRETATION 25% respondents have the opinion that the frequency of the traini ng programmes is sufficient but 50% of the respondents differ to this. They beli eve that the number of training programmes organized in a year should be increas ed and some in house training programmes should also be organized by the organis ation regularly. 10) Please suggest any changes you would like to have in the existing training p rogrammes. The major suggestions for changes in the existing training programmes are as fol lows: The frequency of the training programmes organized in a year should be incr eased. The duration of the training sessions should be amplified. New programmes for personal as well as professional development of the officers should be deve loped. Officers should be referred for the training programmes as per their deve lopmental needs. The training programmes should be organized outside the office in order to avoid disturbance in the work. 62

Some training sessions should also be organized in house for the officers who fi nd it difficult to attend them if held outside the office premises. Better prese ntation technologies should be used in order to increase the effectiveness of th e programmes. The course curriculum for the training programmes should be curren t in terms of the new developments in the world. 10) How many training programmes have you attended during the last year? No. of Programmes Upto 2 3-5 6-8 More than 8 Total No. of Respondents 25 10 4 1 40 % of Responses 62% 25% 10% 3% 100% 63

INTERPRETATION 35% of the workers have attended 3-8 training programmes in the l ast year, which is the clue of a useful training policy of the organization. How ever, 62% of the workers have attended only 0-2 training programmes, which shoul d be effectively seen by the organization. Also, every worker should be given ch ances to attend as many training programmes as possible. 11) The training given is useful to you. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 19 10 5 5 1 20 % of Responses 47% 24% 13% 13% 3% 100% 64

INTERPRETATION 71% of the respondents feel that the training programmes were use ful. 13% respondents could not comment on the question and 16% think that the pr ogrammes were irrelevant to their objective of being useful. The organization mu st ensure programmes that are useful and prove to cater to the developmental nee ds of the workers. 12) The time limit of the training programme was sufficient. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 7 14 5 6 8 40 % of Responses 18% 34% 13% 15% 20% 100% 65

INTERPRETATION 42% respondents feel that the time limit of the training programm e was adequate but 35% feel that it was insufficient. Also, 13% could not commen t on the question. All the respondents though felt that increase in time limit o f the programmes would certainly be advantageous and the organization should tak e some steps in this direction. 13) The time limit of the training programme, if increased would make it more ef fective. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 18 8 4 8 2 40 % of Responses 45% 20% 10% 20% 5% 1 00% 66

INTERPRETATION 65% respondents feel that the increase in the duration of the tra ining programmes would be beneficial but 25% differ to this opinion. Going by th e majority, the organisation should make required changes to increase the durati on of the programmes and also take the opinion of the workers to have an effecti ve training session. 14) The training was effective in improving your on-the-job efficiency. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 15 10 5 6 4 40 % of Responses 37% 25% 13% 15% 10% 100% 67

INTERPRETATION 62% respondents believe that the training programmes increase the ir job efficiency but 25% disagree to this. The respondents were of the opinion that having current topics for the training programmes and also some sessions by an external faculty would help them increase their on the job efficiency. 15) The training aids used were effective in improving the overall effectiveness of the programme. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 10 4 12 8 6 40 % of Responses 25% 10% 30% 20% 15% 100% 68

INTERPRETATION 35% respondents believe that the training aids were effective in improving the overall efficiency of the programme. Contrary to this, 35% disagre e and 30% could not comment on the issue. The organization should ensure positiv e awareness about the training aids used. Also, the use of better presentation a ids should be facilitated. 16) The number of training programmes organized for workers in a year are suffic ient. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 7 6 4 15 8 40 % of Responses 18% 15% 10% 37% 20% 100% 69

INTERPRETATION 33% respondents believe that the numbers of training programmes o rganized in a year are sufficient, but a majority of 57% disagrees to this. The organization should ensure multiple programmes for the workers and hence enable them in improving their skills and knowledge. 17) The participation of workers in training programme would help increase its e ffectiveness. Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Dis agree Total No. of Respondents 20 9 5 4 2 40 % of Responses 49% 23% 13% 10% 5% 1 00% 70

INTERPRETATION 72% respondents feel that participative and interactive training session could provide more awareness and knowledge in a small span of time as co mpared to classroom teaching. 13% respondents could not comment on this and 15% disagree to it. 18) Please suggest any changes you would like to have in the exi sting training programmes. The major suggestions for changes in the existing training programme s are as follows: The workers were of the opinion that external faculty should be appointed for the training programmes. The period of the training sessions shou ld be augmented. The rate of the training programmes organized in a year should be increased. Every one should get a chance to attend the training programmes. D ocumentaries and other films relating to issues of motivation, team building sho uld be screened. 71

Practical examples should be used to make things easy to understand during the t raining sessions. Better technological aids and methods should be used to make t he training sessions exciting. 72

CONCLUSIONS & IMPLICATIONS The major findings of the project are enumerated as follows: Training is conside red as a positive step towards augmentation of the knowledge base by the respond ents. The objectives of the training programmes were broadly known to the respon dents prior to attending them. The training programmes were adequately designed to cater to the developmental needs of the respondents. Some of the respondents suggested that the time period of the training programmes were less and thus nee d to be increased. Some of the respondents also suggested that use of latest tra ining methods will enhance the effectiveness of the training programmes. Some re spondents believe that the training sessions could be made more exciting if the sessions had been more interactive and in line with the current practices in the market. The training aids used were helpful in improving the overall effectiven ess of the training programmes. The training programmes were able to improve onthe-job efficiency. Some respondents also recommended that the number of trainin g programmes be increased. 73

RECOMMENDATIONS Based on the data collected through the questionnaire and interactions with the Officers and Workers of BHEL the following recommendations are made for consider ation: The organization may utilize both subjective and objective approach for t he training programmes. The organization may consider deputing each employee to attend at least one training programmes each year. The In-house training program mes will be beneficial to the organization as well as employees since it will he lp employees to attend their official work while undergoing the training. The or ganization can also arrange part time training programmes in the office premises for short durations, spanning over a few days, in order to avoid any interrupti on in the routine work. The organization can arrange the training programmes dep artment wise in order to give focused attention towards the departmental require ments. 74

BIBLIOGRAPHY

Effective Planning in Training and Development World Class Training Training in Practice Human Resource Management Human Resource Management Human Capital Leslie Rae Kaye Thorne Blackwell C.B.Gupta T.N.Chabra Journal 75

APPENDIX QUESTIONNIARE 1) How many training programmes have you attended in last 5 years? 0-5 6-10 10-1 5 More than 15 2) The programme objectives were known to you before attending it . Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree 3) The training programme was relevant to your developmental needs. Strongly agr ee Moderately agree Cant Say Moderately Disagree Strongly Disagree The period of training session was sufficient for the learning. Strongly agree Moderately agre e Cant Say Moderately Disagree Strongly Disagree 5) The training methods used dur ing the training were effective for understanding the subject. 76

Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree 6) The training sessions were exciting and a good learning experience. Strongly ag ree Moderately agree Cant Say Moderately Disagree Strongly Disagree 7) The traini ng aids used were helpful in improving the overall effectiveness of the programm e. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree 8) The training was effective in improving on- the- job efficiency. Strongly ag ree Moderately agree Cant Say Moderately Disagree Strongly Disagree 77

9) In your opinion, the numbers of training programmes organized during the year were sufficient for officers of BHEL. Strongly agree Moderately agree Cant Say oderately Disagree Strongly Disagree 10) How many training programmes have you a ttended during the last year? Upto 2 3-5 6-8 More than 8 11) The training given is useful to you. Strongly agree Moderately agree Cant Say Moderately Disagree rongly Disagree 12) The time limit of the training programme was sufficient Stro ngly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree 13) The time limit of the training programme, if increased would make it more ef fective. 78

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Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree 14 ) The training was effective in improving your on-the-job efficiency. Strongly a gree Moderately agree Cant Say Moderately Disagree Strongly Disagree 15) The trai ning aids used were effective in improving the overall effectiveness of the prog ramme. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disa gree 16) The number of training programmes organized for workers in a year are s ufficient. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree 79

17) The participation of workers in training programme would help increase its effec tiveness. Strongly agree Moderately agree Cant Say Moderately Disagree isagree 80 Strongly D

THANKING YOU 81