Training Development Practices in ICICI Bank

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$ERTIFI$ATE

This is to ertif' that the management thesis titled “A #tudy on

Training and Develo!ent ra"ti"e in I$I$I %an&' submitted b'

768EN9ATESAN Enroll No )N*SE++) during semester$ of the MBA

program (lass !"%"& embodies original )or* done b' him.

Signature of the fault' guide

Mr#6 S6 Mad4uri

Fa"ulty !e!%er

ASIM - Hydera%ad

2



DE$LARATION

here b' delare that the pro+et )or* entitled ,a stud' on Training and

-eelopment praties in // ban* at 0'derabad1 for the aademi 'ear !""#$

!"%" submitted to /2A uniersit' in partial fulfillment of the requirement for the

a)ard of the ,Master of Business Administration1 is a bonafide )or* arried out

b' me under the guidane of Mrs.S.Madhuri3 fault' guide3 Adam smith institute

of management and does not from similar )or* submitted to the /2A uniersit'

or an' other institution.

Pla"e $andidate #ignature

Date

3



A$9NO:LEDGEMENT

At the er' outset3 )ould li*e to than* the lord for the

supernatural grae and meries.

hae immense pleasure to than* Mr6 TRINATH; "entre Head

ADAMSMITH INSTIT3TE OF MANAGEMENT )ho has gien me moral

support to do m' pro+et )or* effetiel' and effiientl'.

Ne4t than* to Mr#6S37ATHA; A"ade!i" $oordinator

ADAMSMITH INSTIT3TE OF MANAGEMENT helped me to do the pro+et

suessfull' and in effiient manner.

)ish to reord m' deep sense of gratitude to m' fault' guide3

Mr#6S6Mad4uri; Fa"ulty Me!%er; ADAMSMITH INSTIT3TE OF

MANAGEMENT for his aluable suggestions3 onstrutie omments and

guidane to bring out this pro+et suessfull'.

2inall' it5s m' pleasure to than* m' parent and friends for their

ontinuous enouragement at eer' moment.

4



$ONTENTS

5

I INTROD3$TION AND DESIGN OF

THE ST3D<

%.% ntrodution %

%.! 6b+eties of the stud' %

%.7 -isription of the problem !

%.8 Justifiation of the problem !

%.9 :esearh Methodolog' 7

II $OMPAN< PROFILE 8

III IND3STR< PROFILE ;

I8 LITERAT3RE RE8IE: %"

8.% <iterature :eie)$% %"

8.! <iterature :eie)$% !#

8 ANAL<SIS AND INTERPRETATION 8;

8I FINDING AND S3GGESTION =>

8II $ON$L3SION ;%



8III ANNE=3RE ;!

#.% Bibliograph' ;8

#.! ?ebliograph' ;9

6



A*STRA$T

This pro+et titled ,A stud' on Training and -eelopment pratie in // ban* @

0'derabad1 is onduted to *no) the effetieness of training and deelopment

program implemented in the organiation3 understanding the arious methods

adopted and measuring its effiien'. The methodolog' used for this stud' is the

questionnaire for a sample of 7" respondents from arious branhes in 0'derabad.

7



$HAPTER-I

INTROD3$TION AND DESIGN OF THE ST3D<

.6. INTROD3$TION

The stud' aims at finding out the

Training and deelopment pratie in // ban* in 0'derabad.

The main ob+eties of this stud' is to find out the

operational leels of management. The stud' desribes the effetieness of

training and deelopment program implemented in the organiation3

understanding the arious methods adopted and measuring its effiien'.

The methodolog' used for this stud' is the questionnaire for a sample of 7"

respondents from arious branhes in 0'derabad.

The data is anal'ed on the present senario of the

emplo'ees and managers in the organiation.

.6/ O*7E$TI8E OF THE ST3D<

The ob+etie of the stud' is to help the

organiation ahiee its purpose b' adding alue to its *e' resoure$the

people it emplo's. The purpose of training is to

To promote ersatilit' and adaptabilit' to ne)

methods.

To redue the labour turnoer.

To inrease +ob satisfation.

8



To inrease effiien'.

.61 De#"rition o5 t4e ro%le!

This stud' is mainl' onduting for anal'ing and identifies the Training

and -eelopment praties in // ban* )ith regarding to the top leel

management.

t )ill help to *no) the arious proesses )hih )ill be follo)ing b' the

organiation.

.6> 7u#ti5i"ation o5 t4e roo#ed #tudy

Ban*ing setor is the booming setor in urrent senario. n order to

*no) the Training and -eelopment praties in ban* seleted // ban* to

anal'e the training effetieness.

9



.6? RESEAR$H METHODOLOG<

Sa!le #i@e

The researher has proposed to interie) to respondents)ho are )or*ing in Branhes of // ban*3 0'derabad and the' )ere seleted asthe sample for the stud'.

Sour"e# o5 data

The stud' is based on both primar' and seondar' data.

Pri!ary data

The primar' data )ere olleted through struturedquestionnaire.

Se"ondary data

The required seondar' )as olleted from boo*s3magaines and )eb$sites.

Data "olle"tion te"4niue

The questionnaire has been designed and supplied tothe respondents for olleting primar' data from the emplo'ees.

10



$HAPTER-II

$OMPAN< PROFILE

// Ban* is ndias seond$largest ban* )ith total

assets of :s. 73=;8.%> billion (CSD ;; billion& at June 7"3 !""> and profit after ta4

:s. #.;# billion for the quarter ended June 7"3 !"">. The Ban* has a net)or* of

%39!; branhes and about 83#%= ATMs in ndia and presene in %# ountries. //

Ban* offers a )ide range of ban*ing produts and finanial series to orporate

and retail ustomers through a ariet' of delier' hannels and through its

speialied subsidiaries and affiliates in the areas of inestment ban*ing3 life and

non$life insurane3 enture apital and asset management.

The Ban* urrentl' has subsidiaries in the CnitedKingdom3 :ussia and /anada3 branhes in Cnited States3 Singapore3 Bahrain3

0ong Kong3 Sri <an*a3 atar and -ubai nternational 2inane /entre and

representatie offies in Cnited Arab Emirates3 /hina3 South Afria3 Bangladesh3

Thailand3 Mala'sia and ndonesia. 6ur CK subsidiar' has established branhes in

Belgium and Ferman'.

// Ban*s equit' shares are listed in ndia on

Bomba' Sto* E4hange and the National Sto* E4hange of ndia <imited and its

Amerian -epositar' :eeipts (A-:s& are listed on the Ne) Gor* Sto*

E4hange (NGSE&.

11



HISTOR<

// Ban* )as originall' promoted in %>>8 b'

// <imited3 an ndian finanial institution3 and )as its )holl'$o)ned

subsidiar'. //s shareholding in // Ban* )as redued to 8=H through a

publi offering of shares in ndia in fisal %>>#3 an equit' offering in the form of

A-:s listed on the NGSE in fisal !"""3 // Ban*s aquisition of Ban* of

Madura <imited in an all$sto* amalgamation in fisal !""%3 and seondar' mar*et

sales b' // to institutional inestors in fisal !""% and fisal !""!. // )as

formed in %>99 at the initiatie of the ?orld Ban*3 the Foernment of ndia and

representaties of ndian industr'. The prinipal ob+etie )as to reate a

deelopment finanial institution for proiding medium$term and long$term pro+et

finaning to ndian businesses. n the %>>"s3 // transformed its business from a

deelopment finanial institution offering onl' pro+et finane to a diersified

finanial series group offering a )ide ariet' of produts and series3 both

diretl' and through a number of subsidiaries and affiliates li*e // Ban*.

After onsideration of arious orporate

struturing alternaties in the onte4t of the emerging ompetitie senario in the

ndian ban*ing industr'3 and the moe to)ards uniersal ban*ing3 the

managements of // and // Ban* formed the ie) that the merger of //

)ith // Ban* )ould be the optimal strategi alternatie for both entities3 and

)ould reate the optimal legal struture for the // groups uniersal ban*ing

strateg'. The merger )ould enhane alue for // shareholders through the

12



merged entit's aess to lo)$ost deposits3 greater opportunities for earning fee$

based inome and the abilit' to partiipate in the pa'ments s'stem and proide

transation$ban*ing series.

The merger )ould enhane alue for // Ban*

shareholders through a large apital base and sale of operations3 seamless aess

to //s strong orporate relationships built up oer fie deades3 entr' into ne)

business segments3 higher mar*et share in arious business segments3 partiularl'

fee$based series3 and aess to the ast talent pool of // and its subsidiaries.

n 6tober !""%3 the Boards of -iretors of // and // Ban* approed the

merger of // and t)o of its )holl'$o)ned retail finane subsidiaries3 //

Iersonal 2inanial Series <imited and // /apital Series <imited3 )ith

// Ban*.

The merger )as approed b' shareholders of // and

// Ban* in Januar' !""!3 b' the 0igh /ourt of Fu+arat at Ahmadabad in Marh

!""!3 and b' the 0igh /ourt of Judiature at Mumbai and the :esere Ban* of

ndia in April !""!. /onsequent to the merger3 the // groups finaning and

ban*ing operations3 both )holesale and retail3 hae been integrated in a single

entit'.

13



$HAPTER-III

IND3STR< PROFILE

INDIAN *AN9ING IND3STR<

Ban*ing in ndia originated in the last deades of the %#th

entur'. The first ban*s )ere The Feneral Ban* of ndia )hih started in %;#=3

and the Ban* of 0industan3 both of )hih are no) defunt. The oldest ban* in

e4istene in ndia is the State Ban* of ndia3 )hih originated in the Ban* of

/alutta in June %#"=3 )hih almost immediatel' beame the Ban* of Bengal. This

)as one of the three presiden' ban*s3 the other t)o being the Ban* of bomba'

and the Ban* of Madras3 all three of )hih )ere established under harters from

the British East ndia /ompan'. 2or man' 'ears the Iresiden' ban*s ated as

quasi$entral ban*s3 as did their suessors. The three ban*s merged in %>!9 to

form the mperial Ban* of ndia3 )hih3 upon ndias independene3 beame the

State Ban* of ndia.

ndian merhants in /alutta established the Cnion Ban*

in %#7>3 but it failed in %#8# as a onsequene of the eonomi risis of %#8#$8>.

The Allahabad Ban* 3 established in %#=9 and still funtioning toda'3 is the oldest

Joint Sto* ban* in ndia. t )as not the first though. That honor belongs to the

Ban* of Cpper ndia3 )hih )as established in %#=73 and )hih suried until

%>%73 )hen it failed3 )ith some of its assets and liabilities being transferred to

the Alliane Ban* of Simla.

14

http://en.wikipedia.org/wiki/Bank_of_Bombay

http://en.wikipedia.org/wiki/Bank_of_Madras

http://en.wikipedia.org/wiki/Imperial_Bank_of_India

http://en.wikipedia.org/wiki/Allahabad_Bank

http://en.wikipedia.org/wiki/Alliance_Bank_of_Simla

http://en.wikipedia.org/wiki/Bank_of_Bombay

http://en.wikipedia.org/wiki/Bank_of_Madras

http://en.wikipedia.org/wiki/Imperial_Bank_of_India

http://en.wikipedia.org/wiki/Allahabad_Bank

http://en.wikipedia.org/wiki/Alliance_Bank_of_Simla



?hen the Amerian /iil ?ar stopped the suppl' of otton

to <anashire from the /onfederate States3 promoters opened ban*s to finane

trading in ndian otton. ?ith large e4posure to speulatie entures3 most of the

ban*s opened in ndia during that period failed. The depositors lost mone' and lost

interest in *eeping deposits )ith ban*s. Subsequentl'3 ban*ing in ndia remained

the e4lusie domain of Europeans for ne4t seeral deades until the beginning of

the !"th entur'.

2oreign ban*s too started to arrie3 partiularl' in /alutta3

in the %#="s. The /omptoire dEsompte de Iaris opened a branh in /alutta in

%#="3 and another in Bomba' in %#=! branhes in Madras and Iondiher'3 then a

2renh olon'3 follo)ed. 0SB/ established itself in Bengal in %#=>. /alutta )as

the most atie trading port in ndia3 mainl' due to the trade of the British Empire3

and so beame a ban*ing enter. The Ban* of Bengal3 )hih later beame the

State Ban* of ndia.

The first entirel' ndian +oint sto* ban* )as the 6udh

/ommerial Ban*3 established in %##% in 2aiabad. t failed in %>9#. The ne4t )as

the Iun+ab National Ban* 3 established in <ahore in %#>93 )hih has suried to the

present and is no) one of the largest ban*s in ndia.

Around the turn of the !"th /entur'3 the ndian eonom'

)as passing through a relatie period of stabilit'. Around fie deades had elapsed

sine the ndian Mutin'3 and the soial3 industrial and other infrastruture had

improed. ndians had established small ban*s3 most of )hih sered partiular

ethni and religious ommunities.

15

http://en.wikipedia.org/wiki/American_Civil_War

http://en.wikipedia.org/wiki/Lancashire

http://en.wikipedia.org/wiki/Confederate_States

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Pondichery

http://en.wikipedia.org/wiki/HSBC

http://en.wikipedia.org/wiki/Bengal

http://en.wikipedia.org/wiki/British_Raj

http://en.wikipedia.org/wiki/State_Bank_of_India

http://en.wikipedia.org/wiki/Faizabad

http://en.wikipedia.org/wiki/Punjab_National_Bank

http://en.wikipedia.org/wiki/Lahore

http://en.wikipedia.org/wiki/Indian_rebellion_of_1857

http://en.wikipedia.org/wiki/American_Civil_War

http://en.wikipedia.org/wiki/Lancashire

http://en.wikipedia.org/wiki/Confederate_States

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Pondichery

http://en.wikipedia.org/wiki/HSBC

http://en.wikipedia.org/wiki/Bengal

http://en.wikipedia.org/wiki/British_Raj

http://en.wikipedia.org/wiki/State_Bank_of_India

http://en.wikipedia.org/wiki/Faizabad

http://en.wikipedia.org/wiki/Punjab_National_Bank

http://en.wikipedia.org/wiki/Lahore

http://en.wikipedia.org/wiki/Indian_rebellion_of_1857



The presiden' ban*s dominated ban*ing in ndia but there

)ere also some e4hange ban*s and a number of ndian +oint sto* ban*s. All

these ban*s operated in different segments of the eonom'. The e4hange ban*s3

mostl' o)ned b' Europeans3 onentrated on finaning foreign trade. ndian +oint

sto* ban*s )ere generall' under apitalied and la*ed the e4periene and

maturit' to ompete )ith the presiden' and e4hange ban*s. This segmentation

let <ord /uron to obsere3 "In respect of banking it seems we are behind the

times. We are like some old fashioned sailing ship, divided by solid wooden

bulkheads into separate and cumbersome compartments."

The period bet)een %>"= and %>%%3 sa) the establishment

of ban*s inspired b' the S)adeshi moement. The S)adeshi moement inspired

loal businessmen and politial figures to found ban*s of and for the ndian

ommunit'. A number of ban*s established then hae suried to the present suh

as Ban* of ndia3 /orporation Ban* 3 ndian Ban* 3 Ban* of Baroda3 /anara

Ban* and /entral Ban* of ndia.

The feror of S)adeshi moement lead to establishing ofman' priate ban*s in -a*shina Kannada and Cdupi distrit )hih )ere unified

earlier and *no)n b' the name South /anara ( South Kanara & distrit. 2our

nationalised ban*s started in this distrit and also a leading priate setor ban*.

0ene undiided -a*shina Kannada distrit is *no)n as /radle of ndian

Ban*ing.

16

http://en.wikipedia.org/wiki/Joint_stock_company

http://en.wikipedia.org/wiki/Swadeshi

http://en.wikipedia.org/wiki/Bank_of_India

http://en.wikipedia.org/wiki/Corporation_Bank

http://en.wikipedia.org/wiki/Indian_Bank

http://en.wikipedia.org/wiki/Bank_of_Baroda

http://en.wikipedia.org/wiki/Canara_Bank


http://en.wikipedia.org/wiki/Central_Bank_of_India

http://en.wikipedia.org/wiki/Dakshina_Kannada

http://en.wikipedia.org/wiki/Udupi_district

http://en.wikipedia.org/wiki/Joint_stock_company

http://en.wikipedia.org/wiki/Swadeshi

http://en.wikipedia.org/wiki/Bank_of_India

http://en.wikipedia.org/wiki/Corporation_Bank

http://en.wikipedia.org/wiki/Indian_Bank

http://en.wikipedia.org/wiki/Bank_of_Baroda



http://en.wikipedia.org/wiki/Central_Bank_of_India

http://en.wikipedia.org/wiki/Dakshina_Kannada

http://en.wikipedia.org/wiki/Udupi_district



$HAPTER-I8

>6. LITERAT3RE RE8IE:

Title

Training for strategi hangeL some onditions

of effetienessL a ase in the Ban*ing setor in 2rane.

Aut4or

David Courpasson and Yves!rederic ivian.

Re#ear"4 aer

n this paper3 a ase in the ban*ing setor in 2rane is

presented beause this is partiularl' illustratie of some adaned training

poliies. 0ene it enables seeral general onlusions to be dra)n about their

strategi effetieness. 6ne partiular onlusion is that a training programme

aimed at raising eduational leels or basi s*ills )hih is not rapidl' and

ompletel' artiulated to professional programmes and ations about areer paths

is doomed to raise frustrations and miss3 at least partiall'3 its ob+eties.

To onsider training as a strategi 0:M tool is thus not

enoughL indeed3 there is a omple4 realit' of training in pratie. There is a broad

onsensus on the role that training must pla' in deeloping the *no)$ho) and

s*ills needed to obtain a firms ompetitie adantage. n this perspetie3 training

17



is more and more ie)ed as an inestment in human resoures made in order to

obtain this *no)$ho) or these s*ills. A part of the literature spea*s about 0:

deelopment to outline the lin*s bet)een3 for e4ample3 training3 areer planning

and +ob design (0all3 %>#=&. n a perspetie less stritl' eonomi3 training an

also be oneied of as a )a' of satisf'ing emplo'ees personal and professional

deelopment.

This deelopment is a part of )hat emplo'ees an e4pet

from their emplo'er and is a means of getting some onergene bet)een

indiidual3 group and ompan' interests. t is therefore a means of reinforing the

inisible ontrat bet)een emplo'ees and organiation (A*erlof and Mi'aa*i3

%>#"&. n a more soiologial approah3 training poliies an be seen as +oint

regulation bet)een e4euties and emplo'ees (:e'naud3 %>#>&3 in order to ensure

a temporar' soial balane in the ompan'.

n a onte4t of strategi hange3 suh as in the 2renh

ban*ing setor3 this funtion of training is een more ritial3 beause a large

number of ob+eties an be asribed to itL opening people to ne) +obs or ne)

organiations3 improing tehnial s*ills3 helping reonersion of emplo'ees3 et.

This is )h' an anal'sis of the atual poliies and programmes is needed3 in order

to see under )hat onditions these ob+eties an reall' be met.

The purpose of this paper is to present a ase in the

ban*ing setor in 2rane3 )hih is partiularl' illustratie of some adaned

training poliies3 and to dra) from it seeral general onlusions about their

strategi effetieness.

18



The 2renh ban*ing setor3 as in most ?estern European

ountries3 is onfronted )ith drasti hanges )hih deepl' affet the onditions of

the finanial series mar*et and the harateristis of populations in ban*s. A

lassial obseration is no) aeptedL transformation of mar*et onditions has

heail' modified the relations bet)een ban*ing firms and the finanial series

mar*et.

n response to a progressie saturation of the traditional

mar*ets3 an important diersifiation in the offering of series and produts has

appeared intensie ompetition3 partiularl' lin*ed )ith the e4lusion of

intermediaries )hih ourred around the mid$%>#"s3 has progressiel' affeted

series to the general publi. The liberaliation of finanial mar*ets3 almost

onomitant )ith these eolutions3 has inreased these trends3 )hih hae gien a

)hole ne) insight into the enironment of ban*ing firms (Annandale$Massa and

Bertrand3 %>>" Iiesse3 %>>%&. These ne) onditions hae alread' had er' preise

effets on human resoures in ban*s (0endr'3 %>#; Bertrand and No'elle3 %>##

0iltrop3 %>>!&.

The general onte4t3 in 2rane li*e in other industrialied

ountries3 has led the ban*ing setor to redue emplo'ment3 een if it has been

done )ith arious methods. n 2rane3 the largest ban*s hae mainl' deeloped

poliies of earl' retirement or oluntar' leae (/herain and -enuire3 %>>!& but a

number of mediumsied ban*s ould not preent massie redundanies.

As it has been noted3 the ban*ing setor )ill no longer

be a setor reating +obs for large groups of uns*illed people3 speiall' for )omen3

)ho onstitute the ma+or part of the )or*$fore in 2rane3 li*e in Britain (Springer3

%>>%&. To this quantitatie effet3 a number of qualitatie trends must be added.19



Speiall' in 2rane3 the searh for fle4ibilit' has

deeloped3 in the ban*ing setor as in industrial setors3 the use of part$time

emplo'ment and fi4ed$term ontrats (6:eill'3 %>>!&. The fulltime life$longemplo'ment3 )hih used to be for 'ears the onl' emplo'ment formula in ban*s3 is

no longer the onl' rule3 een if it is still the ma+or one. Strategies of diersifiation

and produtiit' improement hae led e4euties to implement organiational

hangeL mergers3 dela'ering3 lient$based strutures. The oerall organiational

onte4t of ban*ing atiities has dramatiall' eoled in the reent 'ears. A

deelopment of mar*et segmentation has hanged3 in a number of ban*s3 the roles

and strutures of branh personnelL speialiation along mar*et ob+eties3

deelopment of ne) relationship )ith ustomers.

A ne) professionalism is required from branh

emplo'ees in their relations )ith the ustomer3 replaing the simple smiling

ontat onsidered preiousl' as the ore of ommerial relation. At the same time3

ban*s hae redued the number of their branhes3 onsidered as too large after the

period of fast gro)th in the %>;"s. Man' efforts hae been made in order to

inrease qualit' of serie and produtiit'3 sometimes b' enouraging emplo'ees

to propose suggestions. The largest 2renh ban*s hae launhed ambitious Total

ualit' programmes. n response to this strategi eolution3 the ban*ing firms

hae aboe all hired ne) populations3 )ith higher eduational leels. The

assumption is that these graduate emplo'ees )ould be more adaptable to thehanges3 and that some of them )ill bring *no)ledge in omputers and abilit' in

languages that used to be er' sare in the traditional )or*$fore. These

emplo'ees hae e4pressed more demands about their areer3 )hih hae been a

stimulus for establishing more preise areer management poliies.

20



The mar*et eolutions and the re$enforement of

ompetition3 along )ith the gro)ing sophistiation of finanial series and

information tehnolog' hae reated needs for ne) s*ills. The reruitment of a

gro)ing population of speialists has been required3 and the ban*ing setor in

2rane had partl' to hange its image in order to attrat these qualified personnelL

omputer speialists3 e4perts in national and international finanial series3

in ontrol and seurit' s'stems. . . . The role of seniorit' in the promotion proess

has been partl' redued and performane appraisal s'stems hae been generalied

2inall'3 an inreased emphasis on training an be noted

almost eer')here. n 2rane3 the legislation about training requires a minimum

budget (%$! per ent of total )ages& and the ban*ing setor has for a long time

been *no)n as haing training poliies speiall' deeloped. n most ases3 these

poliies hae eoled in order to reah three t'pes of ob+etiesL up s*illing of

traditional emplo'ees3 speiall' in the areas )here emplo'ment redution )as

li*el' (e.g.3 in the administratie setors& the basis for these programs has been an

effort to raise the general eduational leel of emplo'ees (the ase that )e present

belo) is a good e4ample&

Training in ne) tehniques3 mainl' in the information tehnolog'

and finanial series areas.

Training in general management abilities3 for middle$leel emplo'ees

and managerial )or*ers3 in order to help implementation of ne) st'les

and ultures of management (this is also one of the ob+eties of the

21



training programmes that )e are going to present&.

n this ne) onte4t3 the traditional internal training s'stem

in 2rane is onfronted )ith a strutural risis3 aboe all at t)o leels

The adaptation of the ontent of training to the demands and to the

harateristis of ne) populations

The priniple of assoiating the diplomas obtained and areer paths.

To illustrate this point of ie)3 the number of students enrolled for the /AI

diploma has dereased b' #" per ent bet)een %>;8 and %>#;3 and b' 8" per ent

at the BI diploma leel. 6n the other hand3 the risis of the s'stem is mar*ed b'

the e4amination failure rate3 )hih omes partl' from the la* of motiation of the

students3 =" per ent for the /AI3 #" per ent for the BI. 6n the other hand3 the

number of students enrolled in the TB (the highest leel in the training s'stem& is

inreasing b' %9 per ent per 'ear. The usefulness of this diploma is muh learer

for the students beause of the lin* bet)een TB and the promotion at the leel of

e4eutie in the 2renh ban*s. As a result3 the human resoures poliies hae to

redefine the role and the ontent of the training s'stem )ith a ie) to being able

to proide an ans)er to the ne) laims e4pressed b' these ne) emplo'ees.

Aboe all3 the' hae to define the lin*s bet)een the training poliies and the

implementation of ne) areer rules.

The ase stud' that )e present hereafter )ill sho) that

some reent strategi hoies hae been made3 )hih )ill probabl' influene

deepl' the field of training in the ban*ing setor3 that has been for the last fe)

deades the main element of regulation of the internal labor mar*ets in ban*s.22



Training oli"y 5or #trategi" "4ange a "a#e #tudy in a !ediu! #i@ed

%an&

The ban* that )e )ill anal'e in onnetion )ith 0:M

in the ban*ing setor is a member of a group of ban*s partiipating in our researh

programme. t is a ommerial and regional ban*3 oering a quarter of the 2renh

territor'3 and emplo'ing around 8""" emplo'ees in more than !9" branhes. 6er

the past fie 'ears3 its training poli' has been one of the most outstanding

elements of its HRM poli' and is )ell *no)n as suh in the 2renh ban*ing

enironment. This emphasis on training is3 to a great e4tent3 due to the nature of

this ban*s oerall emplo'ment ontrat3 based on an almost e4pliit referene to

emplo'ment stabilit'.

Another e4planation of this emphasis on training is the

personal interest that the ban*s president ta*es in human resoures deelopment

and eduation matters. n his relations )ith the ban*s loal enironment3 he

al)a's onsidered the relations )ith uniersities as ruial. The deelopment of an

ambitious training program an also be seen as a )a' of deeloping the internal

image of the human resoures funtion. The training funtion had been reinfored

shortl' before the launhing of the first program.

This ban* also has a er' atie poli' on ommuniation3

using mainl' sponsoring of sientifi atiities and art. Briefl'3 the organiation of

the ban* is omposed of

A head offie3 grouping the general management series3 the

finanial series setor and the main funtional areasL mar*eting3 aounting3

ontrol3 human resoures.23



An administratie entre3 loated in another plae3 omposed

of the administratie3 prodution and logistis units and the information tehnolog'

diision.

A doen regional diretions3 managing loal branhes. The

0: funtion is organied on a deentralied basis3 as follo)sL

The 0: diretor3 at the head offie3 has a staff omposed ofL a

training manager (funtion )hih gre) to beome a training team3 beause of the

deelopment of the programmes&3 a manager speialied in labor la)s and

industrial relations3 a reruitment unit and an administratie serie (dealing

mainl' )ith ontrats3 pa' and fringe benefits&.

The regional diretions and the administratie entre also hae

a personnel management funtion (omposed of one to three people aording to

the units sie&3 )ho )or* under the authorit' of operational e4euties but are

funtionall' lin*ed to the ban*s 0: diretor.

?e )ill no) desribe the three training programmes underta*en bet)een %>#=

and %>>". The three training programmes

The first programme is aimed at raising the general

eduational leel of the emplo'ees3 in order to ope )ith the hanges in the s*ills

required b' the eolutions in ban*ing atiities. The main onepts of the

management )ere to prepare people either for further tehnial deelopment inside

the ban* or for e4ternal emplo'ment. The politial perspetie )as learL to aoid

an' la'$off3 and then to prepare the emplo'ees for neessar' internal eolutions3

thus preenting an' emplo'ment problem. The population to be trained )as24



estimated in %>#9 at one thousand people3 mainl' administratie ler*s and people

emplo'ed in the setors of prodution and logistis.

This population3 haing an aerage seniorit' of fifteen

'ears and mainl' omposed of )omen3 had a lo) eduational and professional

leel and had not benefited from training programmes so far. This programme3

)hih )e )ill all Irogramme for general eduational leel has been elaborated

)ith the regional series of the Ministr' of Eduation (a er' rare initiatie in the

business setor in 2rane&. n %>#>3 77= people attended the programme3 omposed

of three modules (eonomis3 ommuniation s*ills3 ban*ing& totaling =;9 hours.

At the end3 a ertifiate is deliered to the trainees.

This programme has been a ma+or inestmentL the ban*

training budget3 )hih )as 8.! per ent of total )ages in %>#;3 )ent up to ;.7

perent in %>#>. The total ost3 oer fie 'ears3 of this programme is estimated at

9; million 2renh frans (around %" million CS-&.

The seond training programme (alled n$house management

programme& aims at implementing managerial s*ills in the manager populations of

the ban*. The starting point of the programme is the a)areness of the deep and

unaoidable eolution of managerial +obs in ban*s3 onemingL O on the one

hand3 the demand of managerial s*ills oming from the ne)l' hired populations

#n the other hand3 the eolution of managerial roles in the ne)

onte4t of ban*ing atiities3 )ith the progressie separation bet)een tehnial

speialists and managers. The main ob+etie of this programme )as to ma*e the

manager a)are of these eolutions through a broad diersit' of ontentL general

25





The programme onsists of initing emplo'ees to define the

ontent of t)ent' training modules ()ith the help of a speialist&3 and to be trained

to teah these modules inside the ompan'. This proess does not gie an'

material benefit to the olunteers partiipating. After the first 'ear3 eight modules

hae been defined3 t)ent'$seen people partiipated as designers and fifteen as

training$staff. T)o hundred and fift' people attended the modules3 for about 9"""

hours of training. 2or the seond 'ear3 ten other units )ere designed3 b' thirt'

other people. The training units reated in this proess hae been integrated

into the orporate training atalogue3 and emplo'ees from other units

of the ban* hae attended some of them.

Anal'sis of these programmes

The programme for general eduational leel has been

)idel' reognied throughout 2rane as an innoatie and important programme.

Sine it has been finished onl' reentl'3 it is er' diffiult to ealuate its impat

e4atl'. A large ma+orit' of the people haing partiipated in it )ere er' satisfied

and most of them are proud to hae been members of this pro+et (a speial name

has been gien to these people and sometimes the' onstitute a speifi group

inside the ban*&. Most of them said the' hae dramatiall' improed their

ommuniation s*ills and their self$onfidene.

27



This programme has also been an opportunit' for

deeloping internal ommuniation and improing industrial relations. The union

representaties hae seeral times been onsulted on the programme3 and

this pro+et has been an opportunit' for better ommuniation and o$operation

bet)een e4euties and union leaders. The main purpose of preparing the

eolution of professional s*ills and enhaning internal mobilit' (mainl' from the

administratie to the lient$oriented atiities& is less )ell ahieed. n the first

group3 9" per ent of the people turned to another atiit' in the Ban* in

the seond group3 7= per ent.

The managers of the branhes and loal units )ere almost as

relutant to hire people from the administratie population after the programme

as the' )ere before. 0o)eer3 fift'$one ases of transfer to ommerial atiities

hae been registered. The number of promotions ()ith a onsequene for )ages&

has been fe)3 and this fat has been learl' pereied b' the former trainees.

n terms of strategi 0:M3 it is not lear that a moement to)ards a real s*illing

has been made3 and espeiall' in proportion to the amount of inestment silent.

The in$house management programme has seeral

harateristis )hih partl' e4plain its limits and its )ea*nesses. t has been

designed for one )ide professional ategor' (the managers&3 orresponding in our

ie) to an artifiial population3 )ith fe) ommon professional harateristis.

The designers of the programme hae obiousl' aimed at

intermi4ing er' different t'pes of managers in the ban*L this positie aspet of

mi4ing3 )ell appreiated b' the managers ta*ing part in the programme3 has not

oerome the diffiulties due to the e4treme heterogeneit' of the e4petations and28



of the referene frame)or*s e4isting in the different groupsL branh managers3

omputer e4perts3 traders3 la)'ers. Seond3 the ob+eties of the programme )ere

rather inomplete and ague3 thus3 those ta*ing part in the programme often

ommented on the gap bet)een the onrete eolutions of the managers +obs3 the

onrete onditions of those +obs in da'$to$da' life and the ontent of the

programme. Beause of a la* of preliminar' diagnosis3 the programme )as based

more on some lassial stereot'pes of the manager than on an een appro4imate

ision of the diersit' of the management +obs and of their atual onditions of

eolution.

As a result3 and in spite of the unquestionable indiidual

ultural impat for the trainees3 the managers hae e4periened some diffiult'

in lin*ing the programmes ontribution )ith their da'$to$da' professional life.

Moreoer3 a lot of them hae deepl' felt some ontradition bet)een the so$alled

managerial ob+eties and the ob+eties related to eer'da' profitabilit' and

produtiit' ob+eties3 the latter being used as a basis for appraisal of their

performane. This is partiularl' reinfored b' the present eonomi onte4t of the

ban*ing setor (ompetition on interest rates3 derease of the profit margins&. This

gap bet)een the onerns of man' managers and training has reated a ertain

septiism about the possibilities of putting into pratie the programme ontent.

Ver' briefl'3 the technical development programme

appeared as a suessL !9 per ent of the emplo'ees olunteered to partiipate in

the groups in harge of design a lot of people )or*ed hard3 and sometimes late at

night3 in designing the training modules. The effets are een )ider than e4peted.

Seeral elements an be outlinedL

29



The e4istene in the administratie entre of a ategor' of

*no)ho) has been reognied3 in a field )here this is not usuall' the ase this

has had a ps'hologial effet on a group of emplo'ees not usuall'

onsidered as a ritial group in the ban*.

-esigning training modules has been an opportunit' for e4amining

a number of administratie proedures and operations and reforming

those )hih appeared obsolete or ineffiient.

The formaliation of this *no)$ho) enabled the ban* to train

emplo'ees on sub+ets )hih )ere not taught at all3 and enabled

ne) 'oung emplo'ees to aquire more rapidl' the tehnial basis

needed for their deelopment.

The oerall pro+et has been an opportunit' of mobiliing people3

bringing managers and emplo'ees loser together and improing

the internal image of the administratie entre.

n this tehnial programme3 the fators of suess are quite learL

The preliminar' diagnosis has enabled an in$depth obseration of

the field and of the real sta*es of the emplo'ees. Therefore3 the

lin*s bet)een the training programme3 partl' based on the results

of this anal'sis3 and the da'$to$da' life of the emplo'ee )ere

almost diret.

Ieople hae reognied their problems and their speifiities in the

diagnosis the' hae been aepted the results sometimes30



enthusiastiall'3 although a large part of it has not been er' positie.

This appropriation (also alid for the e4eutie groups& )as a basi ondition for

the mobiliation of the emplo'ees (and of the managers& in the administratie

entre.

This training programme is a ontribution to soling the problems

of the administratie entreL it proided a good fit )ith respet to

the oerall soial sta*es of the administratie populationsL learning3

motiation3 means of turning to ne) t'pes of emplo'ment.

$ON$L3SION

Some general onlusions an be dra)n from the anal'sis

of this ase3 in the perspetie of using training as a tool for 0:M in a strategi

hange onte4t. The training poli' of the ban* desribed here is one of the most

ambitious poliies e4isting in the 2renh ban*ing setor espeiall' as regards the

inestment made. t is therefore er' interesting to tr' to learn from this

e4periene3 *no)ing that other ban*s hae +ust launhed similar pro+ets or are

going to do so er' soon. The first lesson to be learnt is that the basi assumption

of some training poliies3 )hih is the need for a massie upgrading of the general

eduational leel (in our ase3 it is the assumption on )hih the first programme is

based& must be put under ritial e4amination.

31



This assumption3 )hih is also muh used in industrial

setors3 leads to ambitious programmes3 oriented to)ards basi s*ills3 )hose

generall' ma*es transformation into professional s*ills diffiult. The anal'sis

of the population to be trained is also not er' profound (this is the ase )ith the

t)o programmes based on general s*ills&. Thus3 the needs and e4petations of

speifi groups of people annot reall' be ta*en into aount. The third programme

gies the opposite aseL the e4ploration of the soiologial harateristis of the

population onsiderabl' helped the design and the implementation of the ation.

This leads to the neessit' of pa'ing attention to the balane bet)een general

ations and loal ations. Feneral ations an be useful3 but the ob+etie of

mi4ing populations3 )hih is one of its rationales3 seems oerestimated. <oal

ations3 more adapted to speifi ob+eties3 ould be more effiient3 espeiall' in

a onte4t li*e ban*ing )here populations3 e4petations and leels are

differentiating at high speed.

The seond onlusion is about the methods to be used in

the perspetie of a training )hih is supposed to proide real professional

s*ills. Een if the idea of a need for innoatie training methods (inluding

alternation of theor' and pratie3 tutorship3 internship3 ation leaming3 et.& is

)idespread3 the realit' in a lot of ompanies is far behind the intentions. n our

ase3 the oerall qualit' of the t)o general programmes has been good3 but the

methods hae been mainl' those of the standard modeQ of ontinuing eduation

seminars.

The third onlusion is unfortunatel' lassial3 beause it

onerges )ith the results of man' other e4perienes in the industr' setor. A

training programme aimed at raising eduational leel or basi s*ills )hih is not32



rapidl' and ompletel' artiulated to professional programmes and ations about

areer paths is doomed to raise frustrations and miss3 at least partiall'3 its

ob+eties. Een if the programme has sueeded in opening people to ne) )a's

of thin*ing and proided them )ith some basi tools3 the apabilit' of people

genuinel' to operate in different )a's in their +obs3 or aboe all to )or* in ne)

+obs3 )ill be obtained onl' b' a proess )hih ontinues after the general training

itself. n the preparation of this *ind of pro+et3 not enough time is deoted to )hat

)ill happen to people after their oming ba* to )or*.

n our opinion3 this preparation must inludeL

Iroposals about further professional or tehnial training.

6rganiation of +ob offers and ations failitating mobilit' and

integration into ne) groups.

Training of managers about emplo'ees areer deelopment.

E4istene of areer deelopment ounselors3 helping people

)ith this proess.

All this implies the e4istene of a areer management funtion in the ompan' and

a lin* bet)een staff deelopment and training. A fourth onlusion is more

proessual3 and alls attention to the relation bet)een the ontent of 0:M poliies

and the onte4t in )hih the' operate (0endr' and Iettigre)3 %>>"&. Seeral points33



of interest an be notied as far as onte4t is onerned. The deelopment and

importane of the first programme $ and3 less learl'3 of the seond $ )ould not

hae been possible )ithout the strong personal support of the /E6. 6n the

ontrar'3 the diffiulties and )ea*nesses of these t)o programmes seem mainl'

due to an insuffiient relation bet)een 0: speialists and operational managers. A

stronger ooperation )ould hae allo)ed the underta*ing of a deeper diagnosis

and then a more adapted programme. The tehnial programme has full' benefited

from being oneied and led diretl' b' the management of the unit onemed

itself.

>6/ LITERAT3RE RE8IE:-/

Title

Entrepreneurial deelopment programmes onduted b'

publi setor ban*s in tamilnadu @suess or failure

Aut4or M. Ed)in Fnanadhas A.Ven*ates)aran :. :athiha

Journal of Series :esearh3 Speial ssue (2ebruar'3 !""#&

R!""# b' nstitute for nternational Management and Tehnolog'. All :ights

:esered.

Re#ear"4 aer

The main ob+eties of this stud' are to ealuate the

performane of Entrepreneurial -eelopment Irogrammes from the standpoint of

the ban*s3 to stud' the fators influening the attitude of the entrepreneurs to)ards34



the Entrepreneurship -eelopment Irogrammes3 to gie suggestions for

onduting the Entrepreneurial -eelopment. This stud' has been underta*en in all

the distrits3 namel'3 /hennai. Madurai3 Salem3 -harmapuri3 -indigul3 Erode3

:amanathapuram3 Sianganga3 Tiruh3 Villupuram3 /oimbatore3 Tiruneleli3

Kan'a*umari Iudu*ottai3 Virudhunagar3 /uddalore3 Tutiorin3 Than+aur. This

stud' has been pursued from the point of ie) of the entrepreneurs )ho attended

training programmes and started industrial units. The stud' also anal'ed the

motiational fators responsible for the atie partiipation of the entrepreneurs in

the training program. Ten fators )ere ta*en for the stud' to find out the fators

)hih are highl' prompting the entrepreneurs to partiipate in the training

programme. The present stud' is mainl' empirial in nature and based on the

sure' method.

Both primar' and seondar' data )ere olleted for the stud'.

Seondar' data of the stud' omprised information from the publiations of

-istrit ndustries /anters and arious ban*s.

Irimar' data )ere olleted from %"" trained entrepreneurs b' administering

them an interie) shedule.

0'potheses hae been framed to find out the relationship bet)een the soial

ariables and attitude. This has been anal'ed b' adopting Anal'sis of Variane

Test (AN6VA&.The fators motiating the respondents to attend the training )ere

measured b' appl'ing simple arithmeti mean. 6n the basis of the findings of the

sure'3 it is obsered that for a greater suess of the program ertain

modifiations hae to be brought in the Entrepreneurial -eelopment Irogrammes.

35



Tamilnadu oupies an important plae on the industrial

map of ndia. n spite of the fat that it la*s important industrial inputs suh as

oal3 iron ore and the li*e3 it is the most industrialied among the four Southern

States in the ountr'. Most of the industries suh as otton te4tile3 ement3

engineering and hemials depend upon the northern parts of the ountr' for their

ra) materials. Man' established entrepreneurs had a humble beginning in the past.

The' started man' small$sale units in the fields of agriulture3 industr'3 trade and

ommere. Man' entrepreneurs )ere able to aail themseles of finanial and

managerial support from the members of their families and some entrepreneurs got

assistane from their friend and relaties.

The )ord ,Entrepreneur5 originates from a 2renh term

)hih means a person3 )ho underta*es the tas* of bringing together arious

resoures suh as mone'3 materials and people and manages them to ahiee

desired results and ta*es some share. n an' ne) enture an entrepreneur has to

fae ertain ris*s and the profit he gets is the re)ard for ris* bearing Some

entrepreneurs )ho attended the training programmes hae started industrial units3

but the' are not ontinuing the enture. Some entrepreneurs )ho attended the

training programmes hae not started an' industrial unit at all. There are man'

entrepreneurs )ho hae started industrial units after attending the E.-.I and the'

are suessfull' running their units. Man' entrepreneurs )ho started small$sale

units hae deeloped them as medium$sale industries. The )ide spread effet of

the suessful industrial units is signifiant. Man' unemplo'ed graduates

under)ent this training and started their industrial units follo)ing the e4amples of

their predeessors.

T4i# #ituation 4a# given ri#e to t4e 5olloBing i##ue# to %e ro%ed6

36



%. The gro)th of the industrial units started b' the entrepreneurs after

attending the training imparted b' the Iubli Setor Ban*s.

!. The attitude of the entrepreneurs of small sale units to)ards the

Entrepreneurial -eelopment Irogrammes.

7. The fators influening the attitude of the entrepreneurs.

RE8IE: OF PRE8IO3S ST3DIES

A reie) of some of the studies underta*en preiousl'

is gien belo). Fadgil (%>9>& studied the historial aspets of the gro)th of

entrepreneurs in the %#th entur'. 0e gae details of soial ommunities lin*ed

)ith trade3 finane and handiraft industries in arious areas in ndia. 2lorene

(%>=>& in her stud' on ndustrial Entrepreneurs in Madurai -istrit53 found out

that among the prospetie entrepreneur5s soial fators suh as aste3 soial

approal or disapproal3 traditional and ustomar' atiities do not affet their

efforts and atiities.

Tandon (%>;9& in his stud' entitled Enironment and

Entrepreneurs5 had e4plained in detail the four aspets of business enironment3

namel'3 eonomi3 legal3 politial and ultural aspets and anal'ed ho) the'

influene the gro)th of entrepreneurship. Sharma (%>;9& had remar*ed that one of

the reasons for the failure of small entrepreneurs in Cttar Iradesh )as that most of

them )ere not loal and hene the' did not hae lin*s )ith the politial s'stem.5

Bema (%>="& in his stud' ndustrial Entrepreneurship in Madras State53 had stated

that medium sie manufaturing firms in Madras it' and /oimbatore has mostl'

gro)n from small beginnings. 0e had also established that the small$sale37



industries in ndia or in Tamilnadu had sered as a seed bed for medium$sale

industr' and this sho)ed the eal of the entrepreneurs of Madras /it' and

/oimbatore.

S$OPE OF THE ST3D<

This stud' has been underta*en in the follo)ing distrits3

namel'3 /hennai3 Madurai3 Salem3 -harmapuri3 -indigul3 Erode3

:amanathapuram3 Sianganga3 Tiruh3 Villupuram3 /oimbatore3 Tiruneleli3

Kan'a*umari Iudu*ottai3 Virudhunagar3 /uddalore3 Tutiorin3 Than+aur and

Kantrepreneurial -eelopment Irogrammes.

This stud' has been pursued from the point of ie) of the entrepreneurs )ho

attended training programmes and started industrial units.

O*7E$TI8ES OF THE ST3D<

The follo)ing are the ob+eties of the present stud'.

%. To ealuate the performane of Entrepreneurial -eelopment

Irogrammes from the standpoint of the ban*s.

!. To stud' the fators influening the attitude of the entrepreneurs

to)ards the Entrepreneurship -eelopment Irogrammes.

7. To gie suggestions for onduting the Entrepreneurial -eelopment.38



METHODOLOG<

The present stud' is mainl' empirial in harater based on

the sure' method. Seondar' data of the stud' omprised information from the

publiations of -istrit ndustries /entres3 State Ban* of ndia3 ndian 6erseas

Ban*3 /anara Ban* and ndian Ban* reports from Entrepreneurial -eelopment

nstitute of ndia and ndustrial -eelopment of ndia. Irimar' data )ere olleted

from %"" trained entrepreneurs b' administering them an interie) shedule.

H<POTHESES OF THE ST3D<

The follo)ing h'potheses hae been framed to find out the

relationship bet)een the soial ariables and attitude.

%. The age of the entrepreneurs does not influene their attitude.

!. The eduational qualifiations of entrepreneurs do not influene

there attitude.

7. The famil' oupation of the entrepreneurs does not influene

attitude.

8. The motiational fators do not influene their attitude.

SAMPLING DESIGN

39



The present stud' has reie)ed the responses of %""

entrepreneurs )ho attended the E.-.I onduted b' the publi setor ban*s and

started industrial units. A random sample of %" perent of the trained entrepreneurs

from eah ban* has been ta*en for the stud' b' appl'ing random seletion method.

Table %L Ban*$)ise -istribution of Sample Entrepreneurs

Sl.No Name of the Ban* Number of Trained and

Started ndustrial Cnits

Number of Samples

Seleted from eah Ban*

%. State ban* of ndia 9!" 9!

!. /anara Ban* !"" !"

7. ndian 6erseas Ban* %"" %"8. ndian Ban* %#= %#

Total %""= %""

t is obsered from Table % that out of the 9!" entrepreneurs

)ho attended the training onduted b' State Ban* of ndia3 9! (%"H&

entrepreneurs )ere seleted as samples. 6ut of the !"" entrepreneurs )ho attended

the training onduted b' /anara Ban*3 !" (%"H& entrepreneurs )ere seleted as

samples. 6ut of the %"" entrepreneurs )ho attended the training onduted b' the

ndian 6erseas Ban* %" (%"H& entrepreneurs )ere seleted as samples. 6ut of the

%#= entrepreneurs )ho attended the training onduted b' ndian Ban* %# (%"H&

entrepreneurs )ere seleted as samples. The respondents )ere seleted b' appl'ing

random seletion method.

FRAME:OR9 OF ANAL<SIS

40



2or measuring the attitude of the entrepreneurs to)ards the

training programmes onduted b' publi setors ban*s suh as State Ban* of

ndia3 ndian 6erseas Ban*3 /anara Ban* and ndian Ban*3 the attitude sale )as

deeloped b' a)arding sores to fort' statements. The fort' statements )ere based

on the benefit of the training suh as pro+et guidane3 training3 finaning3

onsultan'3 mar*eting information3 finanial feasibilit' stud' and ommerial

feasibilit'. The soring of leels of attitude is based upon <i*ert5s 2ie Ioint

Sale5.

2or seuring the total attitude of the entrepreneurs )ho

attended the training programme and started the industrial units3 fie points )ere

gien for strongl' agree5 four points for agree5 three points for no opinion5 t)o

points for disagree5 and one point for strongl' disagree5 responses. Thus the total

sores of the respondents )ere obtained b' adding up the sores of all the fort'

statements. The relationship bet)een the leels of attitude and their soial fators

has been anal'ed b' adopting Anal'sis of Variane Test (AN6VA&. The fators

motiating the respondents to attend the training )ere measured b' appl'ing

simple arithmeti mean.

The industrial units in the stud' are ategoried into three

groups on the basis of their loations. ndustrial units loated in other areas )ere

ategoried as rural units. The leels of the gro)th of the entrepreneurs )ere

ategoried into high3 medium and lo). The gro)th of the industrial unit )as

measured in relation to the seleted fators b' using the /hain Base nde4 formula.

The gro)th form the preious 'ear to the urrent 'ear )as measured as perentage

in relation to the fator alue in the preious 'ear.

41



2ators Value in$2ator Value in Fro)th :ate

The urrent 'ear the preious 'ear U %""

2ator Value in the Ireious Gear

The oerall gro)th rate of the industrial unit )as alulated as omprehensie

perentage of all the fators onsidered. n order to lassif' the leels of gro)th of

the industrial unit5s arithmeti mean and standard deiation )ere alulated.

AGRI$3LT3RE

Agriulture is the main sta' of the people of Tamilnadu. The

ropping in Tamilnadu is largel' deided b' soil ondition and rainfall. n

Tamilnadu 8>.;H of the area has been brought under ultiation and arious rops

li*e padd'3 orn red gram3 sugarane3 otton3 hilies and groundnut are being

gro)n. Total food grain prodution in the state inreased from =8.% la*h tones in

%>>9$>= to =>.7 la*h tones in %>>=$>;. The ndustrial struture of Tamilnadu

omprises small sale industries3 medium sale industries and large sale

industries. Tamilnadu oupies the third plae in the industrial map of ndia.

SMALL S$ALE IND3STR<

The emergene of Tamilnadu as one of the prominent states

in the field of industr' is mainl' due to the ontribution of small sale industr'.

The struture of small$sale industr' inludes independent small units and

anillar' units suppl'ing their output to large$sale industrial units. The small$sale42



industr' is inoled in the prodution of arieties of goods needed b' the

onsumers and industrial users. The inestment made in small$sale industr' is

omparatiel' less and the apait' of the industr' to generate emplo'ment is

more.

PO:ER

The performane of the po)er setor during %>>=$>; )as

satisfator'. The inrease in po)er generation b' the State5s o)n pro+ets b' 8.9

per ent and purhases from /entral pro+ets b' =.= per ent oer the preious

'ear3 enabled the oerall po)er aailabilit' to improe b' 9.%H and the per apita

onsumption from 8%" *)h to 8!" *)h during %>>=$>;.

ATTIT3DE S$ALE

n this stud' there )ere fort' statements identified for

measuring the leel of attitude. As there is no read' made sale to measure the

leel of attitude3 a sale namel' ,The Attitude Sale1 )as deeloped b' a)arding

sores to the fort' statements and the benefits aruing to the entrepreneurs are

ta*en as omponents for building the sale. The different benefits identified )ere

pro+et guidane3 training3 finaning3 onsultan'3 mar*eting3 information and

finanial feasibilit'. Based on these benefits3 statements )ere formed and

presented to e4perts and the' seleted fort' statements3 aording to their order of

preferene. These statements )ere administered to the sample entrepreneurs on

43



<i*ert5s fie point sale. 2or eer' statement sores )ere allotted in the order of 9

for Strongl' agree53 8 for agree5 7 for No 6pinion53 ! for -isagree53 and for

strongl' disagree5.

The appliation of the attitude sale is illustrated b' ta*ing

the ase of one of the sample entrepreneurs. The entrepreneur has gien his

opinion as Strongl' Agree5 for all the 8" statements3 his sores )ill be !"". f he

agrees )ith all the 8" statements3 his sores )ill be %=". Aordingl' if all the 8"

statements his sores )ill be %!". f he seleted respondent disagrees )ith all the

8" statements his sores )ill be #". The sores of the seleted respondent )ill be

8" if he strongl' disagrees )ith all the 8" statements.

T4e Age Grou o5 t4e Entrereneur# and t4e Attitude toBard# t4e

Training Progra!!e

t is obsered that the attitude to)ards the training

programme of old entrepreneurs is higher than that of the 'oung. ?hen old

entrepreneurs attend the training3 the' are onentrating more on the training

programme3 beause the' are read' to start the industrial units for their lielihood.

But the 'oung entrepreneurs ma' or ma' not hae an interest to start their units.

Thus the age of the entrepreneurs has a lose relationship )ith the attitude to)ards

the training programme. Table 7 sho)s the age group of entrepreneurs under

stud'.

44



Table 7L Age -istribution of Entrepreneurs

S<.N6 Age Froup Number of :espondents

%. Belo) 7" %7(%7H&!. 7"$79 !=(!=H&

7. 79$8" 77(77H&

8. Aboe 8" !#(!#H&

Total %""

ED3$ATIONAL *A$9GRO3ND

Eduational is said to be an important fator )hih

influenes the leel of attitude to)ards the training. The tehniall' qualified

persons an easil' ope )ith the training methodolog' ompared )ith the others.

Man' people )ho do not posses the tehnial qualifiation feel sh' and the' are

not able to follo) the training inputs. Therefore3 eduational ba*ground has beenidentified as one of the fators )hih influene the attitude to)ards the training.

Table. = sho)s the eduational ba*ground of the respondents

Table =L Eduational Ba*ground of the Entrepreneurs

45





7 6thers 9>(9>H&

Total %""

MOTI8ATIONAL FA$TORS

The intention of partiipating in the training program is based on arious moties.

The moties prompting atie partiipation in the training are3 ma*ing use of

traditional s*ill3 tehnial qualifiation3 assoiation )ith the other entrepreneurs3

preious emplo'ment3 reading literature3 demonstration effet3 assoiation )ith

tehnologist3 training from publi setor ban*s3 un)illing to )or* under an

emplo'er and giing emplo'ment to others. The responses to the motiational

fators )hih prompt the entrepreneur to partiipate in the training is sho)n in

Table %!.

Table %!L Motiational 2ators nfluening the Entrepreneur to Join the Training

S<.N6 Motiational 2ators Number of :espondents

% Traditional s*ill ="

! Tehnial qualifiation 99

7 Assoiation )ith other entrepreneurs 8#

8 Ireious emplo'ment 7=

9 :eading literature 9!

47



= -emonstration effort !#

; Training from publi setor ban*s ;!

# Assoiation )ith tehnologists %"

> Not )illing to )or* under an emplo'er #>

%" Fiing emplo'ment >9

n order to find out the fators )hih are influening the

entrepreneurs to partiipate in the training3 simple arithmeti mean is alulated.

Table %7 sho)s the alulation of arithmeti mean.

Entrereneurial Develo!ent Progra!!e#

Table %7L /alulation of Arithmeti Mean

S<.N6

% ="

! 997 8#

8 7=

9 9!

= !#

; ;!

# %"48



> #>

%" >9

Total 989

Arithmeti Mean W4

N

W 4 989

N %"

989 98.9

%"

S3GGESTIONS

The follo)ing suggestions are gien for improement in the

Entrepreneurial -eelopment Irogrammes.

1. 2ield isits of long duration should be proided in the ourse ontent of the

training program and the prospetie entrepreneurs should get a hane to

obsere funtioning of the unit5s er' losel'. The trainees5 should hae a

hoie in the seletion of t'pes of units to be isited.

2. 6nl' those )ith a real desire for starting ne) units should be seleted for

undergoing E-I training.

3. Ieriodial ourses should be onduted to impart *no)ledge in the arious

aspets of the management for the entrepreneurs )ho started industrial units49



after attending training program. To ite a fe) ourses3 Ta4 Ilanning3

Aount Keeping3 0uman :esoure Management and ndustrial :elations

and the li*e )ould be highl' useful to the entrepreneurs.

4. -uring the training programme all the positie aspets of the industrial units

are brought home. The entrepreneur ma' not *no) about the problems that

the' ma' hae to fae after ommening the industrial units. Therefore3

during the period of training both the positie and negatie aspets of

starting the industrial units should be disussed.

5. The ban*s should gie guidane on arious aspets of running the units on a

ontinuous basis sine these entrepreneurs hae been indued b' the ban*s

to start industrial units.

6. Efforts should be made to use loal language in onduting programmes.

This )ill help these andidates possessing eduation up to X! leels.

7. ?hile teahing the tehniques for starting and running units3 problems areas

that an entrepreneur ma' fae should be anal'ed.

8. n order to get the o$operation of the arious offiials of the goernment

agenies3 the' should be inited and made to get inoled in the training

program b' giing letures and guidane to the trainees.

Poli"ie# to %e 5ra!ed %y Govern!ent50



1. Eer' State Foernment should be made to use loal language in onduting

Entrepreneurial -eelopment Irogrammes. This )ill help the andidate

possessing eduation up to X! leels.

2. The Foernment should ondut periodial ourse for entrepreneur to

started an industrial unit after attending training programme.

3. The Foernment should inole the e4perts )ho are in the field of giing

training and the goernment offiials for giing leturers and pratial

guidane to the trainees.

4. The Foernment should ta*e speed' ation to release funds to start a ne)

ndustr' to the suessful trainees.

The present stud' brings to light the innoatie Entrepreneurial -eelopment

Irogrammes implemented b' the publi setor ban*s in Tamil Nadu )hih hae

had muh impat on the gro)th of small sale units. Man' ne) generation

entrepreneurs )ill be able to start industrial units than*s to the Entrepreneurial

-eelopment Irogrammes.

51



$HAPTER-8

ANAL<SIS AND INTERPRETATION

TA*LE .

Fender No. of :espondents Ierentage

Male !" =;

2emale %" 77

Total 7" %""

INTERPRETATION

The table sho)s that =;H of the respondents are Male and 77H

respondents are 2emale.

52



$HART-.

53



TA*LE /

Aquire Tehnial *no)ledge No. of :espondents Ierentage

Agree 7 %"

Strongl' Agree !; >"

-isagree $

Strongl' -isagree $Total 7" %""

INTERPRETATION

The table sho)s that %"H of the respondents are agree and >"H of

the respondents are strongl' agree that training helped to aquire tehnial

*no)ledge and s*ills.

54



$HART-/

55



TA*LE 1

Spend time during training No. of :espondents Ierentage

Agree %# ="

Strongl' Agree %! 8"

-isagree

Strongl' -isagree

Total 7" %""

INTERPRETATION

The table sho)s that ="H of the respondents agree and 8"H of the

respondents are strongl' agree that Senior spend time during training.

56



$HART-1

57



TA*LE >

-eeloping managerial

apabilities

No. of :espondents Ierentage

Agree !% ;"

Strongl' Agree ; !7

-isagree ! ;

Strongl' -isagree $

Total 7" %""

INTERPRETATION

The table sho)s that ;"H of the respondents agree and !7H of the

respondents are strongl' agree that there is a adequate emphasis on deeloping

managerial apabilities.

58



$HART->

59



TA*LE ?

-eelopmental needs No. of :espondents Ierentage

Agree !% ;"

Strongl' Agree # !;

-isagree % 7

Strongl' -isagree $

Total 7" %""

INTERPRETATION

The table sho)s that ;"H of the respondents agree and !;H of the

respondents are strongl' agree that training helped for deelopmental needs.

60



$HART-?

61



TA*LE 2

/lear Cnderstanding No. of :espondents Ierentage

Agree !" =;

Strongl' Agree %" 77

-isagree

Strongl' -isagree $

Total 7" %""

INTERPRETATION

The table sho)s that =;H of the respondents agree and 77H of the

respondents are strongl' agree that training go )ith a lear understanding of the

s*ills and *no)ledge.

$HART-2

62



TA*LE C

63



-eelopment through training No. of :espondents Ierentage

Agree %> =8

Strongl' Agree ; !7-isagree 8 %7

Strongl' -isagree $

Total 7" %""

INTERPRETATION

The table sho)s that =8H of the respondents agree and !7H of the

respondents are strongl' agree that Senior managers help their +uniors deelop

through training.

$HART-C

64



TA*LE )

Adequate free time No. of :espondents Ierentage

Agree > 7"

65



Strongl' Agree !% ;"

-isagree $

Strongl' -isagree

Total 7" %""

INTERPRETATION

The table sho)s that 7"H of the respondents agree and ;"H of the

respondents are strongl' agree from training are adequate free time to reflet and

plan improements in the organiation.

$HART-)

66



TA*LE 0

Training poli' No. of :espondents Ierentage

Agree ; !8

67



Strongl' Agree > 7"

-isagree %% 7=

Strongl' -isagree 7 %"

Total 7" %""

INTERPRETATION

The table sho)s that 7=H of the respondent -isagree that there is

no )ell$designed training poli' in the organiation.

$HART-0

68



TA*LE .+

?or* losel' )ith others No. of :espondents Ierentage

Agree !8 #"

69



Strongl' Agree = !"

-isagree

Strongl' -isagree $

Total 7" %""

INTERPRETATION

The table sho)s that #"H of the respondents are agree and !"H

respondents strongl' agree that training helped to )or* losel' )ith other people.

$HART-.+

70



TA*LE ..

mplement ne) ideas No. of :espondents Ierentage

Agree !7 ;;

Strongl' Agree ; !7

71



-isagree

Strongl' -isagree

Total 7" %""

INTERPRETATION

The table sho)s that ;;H of the respondents agree and !7H of the

respondents are strongl' agree that managers proide the right *ind of limate to

implement ne) ideas and methods aquired b' their +uniors during training.

$HART-..

72



$HAPTER-8I

FINDINGS AND S3GGESTION

From the study it is found that 90% of the respondents are

strongly agree that training helped to aquire tehnial *no)ledge and

s*ills

73



From the study it is found that ="H of the respondents are agree

that Senior spend time during training.

2rom the stud' it is found that ;"H of the respondents are agree that there is

a adequate emphasis on deeloping managerial apabilities.

2rom the stud' it is found that ;"H of the respondents are agree that training

helped for deelopmental needs.

2rom the stud' it is found that =;H respondents are agree that training go

)ith a lear understanding of the s*ills and *no)ledge.

2rom the stud' it is found that =8H respondents are agree that Senior

managers help their +uniors deelop through training.

2rom the stud' it is found that ;"H of the respondents are strongl' agree

from training are adequate free time to reflet and plan improements in the

organiation.

2rom the stud' it is found that 7=H of the respondent -isagree that there is

no )ell$designed training poli' in the organiation.

2rom the stud' it is found that #"H of the respondents are agree and

strongl' agree that training helped to )or* losel' )ith other people.

2rom the stud' it is found that ;;H of the respondents agree that managers

proide the right *ind of limate to implement ne) ideas and methods

aquired b' their +uniors during training.

S3GGESTIONS

74



f the seniors spend more time )ith their +unior

emplo'ees the' )ill ahiee more in the organiation. f the

organiation should hange the training methods for the emplo'ees3 then

the training is more effetie and the emplo'ees ahiee more.

75



$HAPTER-8II

$ON$L3SION

Training "an %ring a%out an i!rove!ent in a er#on#L

Kno)ledge

S*ills

Attitude

Thereb' raising his potential to perform the +ob better.

Training and -eelopment represents a omplete )hole that triggers the

mind3 emotions and emplo'ees best )or* performane.

Training programmes should enhane performane and enrih the

ontributions of the )or*fore. The ultimate goal of training is to deelop

appropriate talent in the )or*fore internall'.

76



$HAPTER-8III

ANNE=3RE

SirMada!

am the student of Adam Smith nstitute of Management (ASM&

doing m' Management Thesis regarding Training and -eelopment pratie in

'our reputed ban*. Kindl' fill this questionnaire for m' ompletion of the )or*.

NAMEL FEN-E:L

S.N6 CEST6NS AF:EE ST:6NF<G

AF:EE

-SAF:EE ST:6NF<G

-SAF:EE

%. The emplo'ees are helped to aquire

tehnial *no)ledge and s*ills

through training.

!. The emplo'ees are helped to aquiretehnial *no)ledge and s*ills

through training.

7. There is adequate emphasis on

deeloping managerial apabilities of

the managerial staff through training.

77



8. Emplo'ees are sponsored for training

programmes on the basis of arefull'

identified deelopmental needs.

9. Emplo'ees sponsored for training go

)ith a lear understanding of the

s*ills and *no)ledge the' are

e4peted to aquire from the training.

=. Senior line managers are eager to

help their +uniors deelop through

training.

;. Emplo'ees returning from training

are gien adequate free time to

reflet and plan improements in the

organiation.

#. There is a )ell$designed and )idel'

shared training poli' in the

ompan'.

>. To )hat e4tent does 'our +ob require

'ou to )or* losel' )ith other

people3 suh as ustomers3 lients or

people in 'our o)n organiation.%". Managers proide the right *ind of

limate to implement ne) ideas and

methods aquired b' their +uniors

during training.

78



)6. *I*LIOGRAPH<

Training for strategi hangeL some onditions of

effetienessL a ase in the Ban*ing setor in 2rane.

David Courpasson and Yves!rederic ivian.

Entrepreneurial deelopment programmes onduted b' publi setor ban*s in tamilnadu @suess or failur 3

Journal of Series :esearh3 Speial ssue (2ebruar'3 !""#& R!""# b'

nstitute for nternational Management and Tehnolog'.

79



)6/ :E*LIOGRAPH<

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