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1.1 GENERAL INTRODUCTION Every organization needs to have well trained and experienced people to perform the activities that have to be done. Training is a process of learning a sequence of programmed behaviour. It is application of knowledge. It gives people an awareness of the rules and procedures to guide their behaviour. It attempts to improve their performance on their current job and prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance, but also which bring about the growth of the personality; help individuals in the progress towards maturity and actualization of their potential capabilities so that they become not only good employees but better men and women. In organizational terms, it is intended to equip person to earn promotions and hold greater responsibility.

Training a person for a bigger and higher job is development. And this may well include not only imparting specific skills and knowledge but also inculcating certain personality and mental attitudes. As the jobs become more complex, the importance of employee development also increases. In a rapidly changing society, employee training and development are not only an activity that is desirable but also an activity that an organization must commit resources to if it is to maintain a viable and knowledgeable work force.

Training has played a very important role in helping the corporation to reach the commanding heights of performance. Any training would be considered to be successful only when the knowledge gained by the participants is transferred to the job performance

Training is the main function of HR. To enhance the Corporation's growth and keep the Corporation ready to anticipate all types of competition and face it too, there is a need that Human Resource should play more active role for overall progress of the Corporation.

The impact of training programme is to mould the employees attitude and help them to synergies individual goals with organizational goals. It also helps in reducing dissatisfaction, complaints, absenteeism and labour turnover. 1.1 (A) DEFINATION According to Flippo, Training is the act of increasing knowledge and skills of an employee for doing a particular job" The major outcome of training is learning. A trainee learns new habits, refined skills and useful knowledge during their training programme, which helps them to improve their performance. Training can also be defined as activities designed to change the behaviour.

Another way of defining training would be a planned programme designed to improve performance and bring about measurable changes in knowledge, skills, attitudes and social behaviour of employees.

Training imparts the ability to detect and correct error. Further more it provides skills and abilities that may be called on in the future to satisfy organisations human resources needs.

Management development

Management development is an attempt at improving an individuals managerial effectiveness through a planned and deliberate process of learning. For an individual this means a change through a process of planned learning. This should be the common and significant aim of development from the point of view of the trainer and the trainee in an organisational setting.

All development is self development. It must be generated within the main himself. Development is highly individual. The development of an individual is due to his day to day experience on a job. Hence, emphasis should be on experiences from day to day work. Any

activity designed to improve the performance of existing managers and to provide for a well planned growth of managers to meet future organisational needs is management development. The change in the individual must take place in those crucial areas which can be considered as output variables:

Knowledge change; Attitude change Behaviour change Performance change End-operational results (the last two changes being the result of the first three changes)

Training Philosophy:

Training constitutes an important component of overall Human Resource Management (HRM) strategy. It is a part of the Human Resource Management efforts of the organization that enables the employees of the organization to continuously update their functional knowledge and skills in various disciplines.

The employees should be familiar with the latest technological developments, organizational procedures and system as well as various Management concepts. An opportunity should, therefore, be provided by the organization to its employees, particularly in management cadre, to attend the management training courses, who in turns can share their knowledge and experience with the juniors in the organization.

One of the basic philosophies of the training programmes is to bring together participants of different disciplines from different regions so that they can exchange their work experience and the problems being encountered, with other participants.

After employees have been selected for various positions in an organization, training them for specific task to which they have been assigned, assumes great importance. Training is an important activity in an organization. 1.1 (B) FEATURES OF TRAINING

Increase knowledge and skill for doing a job. Bridge the gap between job needs and employee skills. Job oriented process, vocational in nature Short-term activity designed especially for operatives.


The overall training objective is to develop required knowledge, skills and attitudes of our employees so that they can perform more productively and achieve the business goals. It is recognized that the employees learn primarily from on-the-job experience. Therefore, in achieving this objective, the primarily contribution is from on-the-job training and supporting contribution from the formal training effort.


To impart basic knowledge and skill to new entrants and enable them to perform the job well.

2. 3.

To equip employee to meet the changing requirement of the job and organization. To teach the employees the new technique and ways of performing the job or operations.


To prepare employees for higher level task and build up a second line of competent managers.

Training has always played an important and integral part in furthering many kinds of human learning and development. However, the fact that training can make an important, if not

crucial, contribution to organizational effectiveness is only now being recognized fully. Companies, organizations and government are beginning to appreciate the value of adequate, consistent and long term investment in this function. Training and Development programmes help remove performance deficiencies in employees. This is particularly true when The deficiency is caused by a lack of ability rather than a lack of motivation to perform. The individual(s) involved have the aptitude and motivation needed to learn to do the job better. Supervisors and peers are supportive of the desired behaviours.

There is greater stability, flexibility and capacity for growth in an organization. Training contributes to employee stability in two ways. Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization. Growth renders stability to the workforce. Further, trained employees tend to stay with the organization. They seldom leave the company. Training makes the employee versatile in operations. All rounder can be transferred to any job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in increased profits from year to year. Accidents, scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction, complaints can be reduced if employees are trained well.

Training is an investment in human resource with a promise of better returns in futures. A companys training and development pays dividends to the employee and the organization. Though no single training programme yields all the benefits, the organization, which devotes itself to training and development, enhances its human resource capabilities and strengthens its competitive edge. At the same time, the employees personal and career goal s are

furthered, generally adding to his abilities and value to the employer.


Training has been performing a very important role in helping the Corporation to reach the commanding heights of performance over the years. The vitality of an organization depends upon its capacity to adapt itself to change. And the current changing environment calls for this the most. Training plays a vital role in this regard. The primary role of training is to assist the employees in their pursuit of knowledge and self-actualization, expounding the belief that there are no limits to human potential and growth and such potential should get transformed into reality. Any training would be considered successful only when the

knowledge gained by the participants of various programmes is transferred to their job performance.

All formal training activities conducted by the Training Centres at Head Office and at Regional Offices are in line with the organizational needs. Formal training efforts of the Training Centres are directed towards supplementing the primary training process which takes place on-the-job.


The need for the training of employees would be clear from the observations made by the authorities 1. To Increase Productivity: Instruction can help employees increase their level of performance on their present assignment. Increased human performance often directly leads to increased operational productivity and increased company profit. Again, increased performance and productivity, because of training, are most evident on the part of new employees who are not yet fully aware of the most efficient and effective ways of performing the jobs.

2. To Improve Quality: Better informed workers are less likely to make operational mistakes. Quality increase may be in relationship to a company product or service, or in reference to the intangible organisational employment atmosphere.

3. To Help a Company Fulfill its Future Personnel Needs: Organisations that have a good internal education programme will have to make less drastic manpower changes and adjustments in the event of sudden personnel alterations. When the need arises, organisational vacancies can more easily be staffed from internal sources if a company initiates and maintain an adequate instructional programme for both its nonsupervisory and managerial employees.

4. To Improve Organisational Climate: An endless chain of positive reactions results from a well planned training programme. Production and product quality may improve; financial incentives may then be increased, internal promotions become stressed, less supervisory pressure ensure and base pay rate increase result. Increased morale may be due to many factors, but one of the most important of these is the current state of an organisations educational endeavour.

5. To Improve Health and Safety: Proper training can help prevent industrial accidents. A safer work environment leads to more stable mental attitudes on the part of employees. Managerial mental state would also improve if supervisors know that they can better themselves through company-designed development programmes.

6. Obsolescence Prevention: Training and development programmes foster the initiative and creativity of employees and help to prevent manpower obsolescence, which may be due to age, temperament or motivation, or the inability of a person to adapt himself to technological changes.

7. Personal Growth: Employees on a personal basis gain individually from their exposure to educational experiences. Again, Management development

programmes seem to give participants a wider awareness, an enlarged skill, and enlightened altruistic philosophy, and make enhanced personal growth possible.


a) An increased use of technology in production; b) Labour turnover arising from normal separations due to death or physical incapacity, for accidents, disease, superannuation, voluntary retirement, promotion within the organization and change of occupation or job. c) Need for additional hands to cope with an increased production of goods and services; d) Employment of inexperienced, new or badli labour requires detailed instruction for an effective performance of a job. e) Need for reducing grievances and minimizing accident rates. f) Need for maintaining the validity of an organization as a whole and raising the morale of its employees.

Collectively, these purposes directly relate to and compromise the ultimate purpose of organisational training programmes to enhance overall organisational effectiveness.


Training is the corner-stone of sound management, for it makes employees more effective and productive. It is actively and intimately connected with all the personnel or managerial activities. It is an integral part of the whole management programme, with all its many activities functionally interrelated.

There is an ever present need for training men so that new and changed techniques may be taken advantage of and improvements affected in the old methods, which are woefully inefficient.

Training is a practical and vital necessity because, apart from the other advantages, it enables employees to develop and rise within the organization, and increase their market value, earning power and job security. It enables management to resolve sources of friction arising from parochialism, to bring home to the employees the fact that the management is not divisible. It moulds the employees attitudes and helps them to achieve a better co-operation with the company and a greater loyalty to it.

Training, moreover, heightens the morale of the employees, for its helps in reducing dissatisfaction, complaints, grievances and absenteeism, reduces the rate of turnover. Further, trained employees make a better and economical use of materials and equipment; therefore, wastage and spoilage are lessened, and the need for constant supervision is reduced.


The forms and types of employee training methods are inter-related. It is difficult, if not impossible, to say which of the method or combination of methods is more useful than the other. Infact, methods are multifaceted in scope and dimension, and each is suitable for a particular situation. The best technique for one situation may not be best for different groups or tasks. Care must be used in adapting the technique/ method to the learner and the job. An effective training technique generally fulfills this objective;

Provide motivation to the trainee to improve job performance, Develop a willingness to change, provide further trainees active participation in the learning process.

Provide a knowledge of results about attempts to improve (i.e. feedback), and permit practice where appropriate.

The various training techniques are as follows: ONTHE-JOB- TRAINING:

Virtually every employee, from the clerk to the president, get On-The-Job Training, when he joins a firm. It is primarily concerned with developing in an employees skills and habits consistent with the existing practices of an organization, and orienting him with his immediate problems. It is mostly given for unskilled and semi-skilled jobs- clerical and sales jobs.

Employees are coached and instructed by skilled co-workers, by supervisors, by the special training instructors. They learn the job by personal observation and practice as well as occasionally handling it. He is learning by doing, and it is most useful for jobs that are either difficult to stimulate or can be learned quickly by watching and doing it.

The main advantage of on-the-job training is that the trainee learns on the actual equipment in use and in the true environment of his job. He, therefore, gets a feel of the actual production conditions and requirements. In this way, a transfer from a training centre or school to the actual production conditions following the training period is allowed. Secondly, it is highly economical since no additional personnel or facilities are required for training. Thirdly, the trainee learns the rules, regulations procedures by observing their day to day applications. He can, therefore be easily sized up by the management.


This method attempts to duplicate on-the-job situations in a company classroom. Its is a class room training which is often imparted with the help of the equipment and machines which are identical with those in use in the place of work. This technique enables the trainee to concentrate on learning the new skills rather than on performing on the actual job. In other words, it is geared to job duties. Theoretical training is given in the class room, while the practical work in conducted on the production line.

It is a very efficient method of training semi-skilled personnel, particularly when many employees have to be trained for the same kind of work at the same time. It is often used to train clerks, bank tellers, inspectors, machine operators, testers, typists, etc. It is most useful when philosophic concepts, attitudes, theories and problem solving abilities have to be learned.

Training is generally given in the form of lectures, conferences, case studies, role playing and discussion.

The various advantages of vestibule training are: As training is given in a separate room, distractions are minimized. A trained instructor, who knows how to teach, can be more effectively utilized. The correct method can be taught without interrupting production. It permits the trainee to practice without the fear of the supervisors/ co-workers observation and their possible ridicule.


Of-the-job training simply means that training is not a part of everyday job activity. The actual location may be in the company classroom or in the places which are owned by the company, or in universities or in associations which have no connection with the company.

This method consists of: 1. Lectures 2. Conferences 3. Group Discussions 4. Case Studies 5. Programmed Instructions

1. Lectures: Lectures are regarded as one of the simplest ways of imparting knowledge to the trainees, esp. when facts, concepts, or principles, attitudes, theories and problems-solving abilities are to be taught. Lectures are formal organized talks by the training specialists, the formal superior or other individual specific topics.

The lecture methods can be used for very large groups which are to be trained within a short time, thus reducing the cost per training. It can be organized rigorously so that ideas and principles relate properly. Lectures are essential when it is a question of imparting technical or special information of a complex nature. They are usually enlivened with discussions, film shows, case studies, role-playing and demonstrations.

In training, the most important uses of lectures include: Reducing anxiety about upcoming training programmes or organisational changes by explaining their purposes. Introducing a subject and presenting an overview of its scope. Presenting basic material that will provide a common background for subsequent activities. Illustrating the application of rules, principles; reviewing, clarifying and summarizing.

The main advantage of lecture system is that it is simple and efficient and though it is more materialistic it can be presented within a given time.

2. Conference method: In this method, the participating individuals confer to discuss point of common interest to each other. A conference is basic to most participative group-centered methods of development. It is a formal meeting, conducted in accordance with an organized plan, in which the leader seeks to develop knowledge and understanding by obtaining an considerable amount of oral participation of the trainees. It lays emphasis on small group discussions, on organized subject matter, and on the active participation of the members involved. Learning is facilitated by building up on the ideas contributed by the conferees.

The conference is ideally suited for the purpose of analyzing problems and issues and examining them from different view points. It is an excellent method for development of conceptual knowledge and for reducing dogmatism and modifying attitudes because the participants develops solutions and reach conclusions, which they often willingly accept.

3. Group discussions: This is an established method for training. A group discussion is conducted in many ways:

It may be based on a paper prepared by one or more trainees on a subject selected in consultation with the person incharge of the group discussion. It may be a part of a study or related to theoretical studies or practical problems. The trainees read their papers, and this is followed by critical discussion. It may be based on the statement made by the person incharge of the group discussion or on a document prepared by an expert, who is invited to participate in the discussion. The person incharge of the group discussion distributes in advance the material to be analysed in the form of required readings. The group discussion compares

the reaction of trainees, encourages discussion, defines the general trends and guides the participant to certain conclusions.

4. Case studies: The case study is based on the belief that the managerial competence can best be attained through study, contemplation and discussion of concrete cases. The case is the set of data, written or oral miniature, description and summary of such data that present issues and problem calling for solutions or action on the part of trainee. When the trainees are given cases to analyse, they are asked to identify the problem and recommend tentative solution for it. This method offers to the trainees matter for reflection and brings home to them a sense of complexity of life as oppose to theoretical simplifications of, and practices in the decision-making process. The case study is primarily useful as a training technique for supervisors and is specially valuable as the technique of developing decision-making skills and for broadening the perspective of the training.

5. Programmed instruction: Programmed instruction involves a sequence of steps which are often set up through the central panel of an electric computer as guides in the performance of a desired operation or series of operations. It incorporates a pre-arranged, proposed, or desired course of proceedings pertaining to the learning or acquisitions of some specific skills or general knowledge. A programmed instruction involves breaking information down into meaningful units and then arranging these in a proper way to form a logical and sequential learning programme or package.


Objectives of training evaluation is to determine the ability of the participant in the training programme to perform jobs for which they were trained, the specific nature of training deficiencies, whether the trainees required any additional on the job training, and the extent of training not needed for the participants to meet the job requirements.

Evaluation of the training programme must be based on the following principles: Evaluation specialist must be clear about the goals and purpose of evaluation. Evaluation must be continuous. Evaluation must provide the means and focus for trainers to be able to appraise themselves, their practices, and their products. Evaluation must be based on objective methods and standards. Realistic target dates must be set for each phase of the evaluation process. A sense of urgency must be developed, but deadlines that are unreasonably high will result in poor evaluation. There are various approaches to training evaluation. To get a valid measure of training effectiveness, the personnel manager should accurately assess trainees job performance two or four months after completion of training. 1.1 (J) THE INSURANCE INDUSTRY IN INDIA

AN OVERVIEW With the largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 1560.41 billion (for the financial year 2006 2007). Together with banking services, it adds about 7% to the countrys Gross Domestic Product (GDP). The gross premium collection is nearly 2% of GDP and funds available with LIC for investments are 8% of the GDP. Even so nearly 65% of the Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. A large part of our population is also subject to weak social security and pension systems with hardly any old age income security. This in itself is an indicator that growth potential for the insurance sector in India is immense.

A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and strengthens the risk taking ability of individuals. It is estimated that over the next ten years India would require investments of the order of one trillion US dollars. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain the economic growth of the country. (Source: HISTORICAL PERSPECTIVE The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non - Indian lives, as Indian lives were considered more risky to cover. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge the same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to Triton Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of the nineteenth century insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during the 1920's and 1930's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over the insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create the much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State led planning and development.

The non-life insurance business continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC). 1.1 (K) INTRODUCTION TO BIRLA SUN LIFE

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organization. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for your future. (Source:

The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market capitalization of Rs. 53400 crores (as on 31st March 2007). It has over 72000 employees across all its units worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of the key organizations within the group are Hindalco and Grasim.

Sun Life Financial Inc. and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. It had assets under management of over US$343 billion, as on 31st March 2007. The company is a leading player in the life insurance market in Canada.

Being a customer centric company, BSLI has invested heavily in technology to build world class processing capabilities. BSLI has covered more than a million lives since inception and its customer base is spread across more than 1000 towns and cities in India. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of

new business premium income. The company has a capital base of 520 crores as on 31st July, 2007.

Its Flexi Life Line Plan offers life long insurance cover till the policy holder is 100 years of age. There are guaranteed returns of 3% p.a. net of policy charges after every 5 years from the eleventh policy year onwards. However the charges are very high. The initial charges for the first year are 65%. Hence the fund value is greatly reduced. 1.1 (L) INTRODUCTIONS TO HDFC STANDARD LIFE INSURANCE COMPANY LIMITED HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 Crores. The gross premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new business premium income at Rs. 1,624 Crores. The company has covered over 8,77,000 lives year ending March 31, 2007. HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing company in India for the last 27 years. HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Reach of the JV player is highly rated and been conferred with many awards. HDFC is rated AAA by both CRISIL and ICRA. Similarly, Standard Life is rated AAA both by Moodys and Standard and Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standard of as a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture.

HDFC Standard Life Insurance Company Ltd. Is one of Indias leading Private Life Insurance Companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) Indias leading housing finance institution and the Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. Both the promoters are will known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry- all important factors to consider when choosing your insurer.


In the recent years, to deal with the ever increasing competition and for the organizational success, training and development plays a very important role. Be it a general employees of the company or a higher positioned managers, training services are required for both. These help them grow, deliver more and take the organization at the peak level! Training management and development programs holds lots of significance like:

Training of Human Resources - Various training services and management programs which are offered helps in optimizing the utilization of human resources. These trainings help employees to achieve the organization goals as well as their individual goals.

Development of Human Resources - Another significant role is played by various career development programs. It helps to provide an opportunity and broad structure for the development of human resources' technical and behavioral skills in an organization. It also helps the employees in attaining personal growth.

Enhancement of Skills of the Employees - Training and development helps in increasing the job knowledge and polish the skills of the employees at every level. Also, it allows expanding the horizons of human intellect, interpersonal skills and an overall personality of the employees.

Increased Productivity - The more the training the more likely is the chances of increasing organizations productivity. Training provides employees the detailed information of their jobs and hence makes it easy for them to perform. This increasing

productivity of the employees helps the organization further to achieve its long-term goal.

Team Bonding - Training helps to increase the team spirit, team-work and inter team collaborations. It helps in inculcating the zeal to learn within the employees. This in turn allows employees to deliver best quality work and boost up the success of organization.


Training can be introduced simply as a process of assisting a person for enhancing his efficiency and effectiveness to a particular work area by getting more knowledge and practices. Also training is important to establish specific skills, abilities and knowledge to an employee. For an organization, training and development are important as well as organizational growth, because the organizational growth and profit are also dependent on the training. But the training is not a core of organizational development. It is a function of the organizational development. Training is different form education; particularly formal education. The education is concerned mainly with enhancement of knowledge, but the aims of training are increasing knowledge while changing attitudes and competences in good manner. Basically the education is formulated within the framework and to syllabus, but the training is not formed in to the frame and as well as syllabus. It may differ from one employee to another, one group to another, even the group in the same class. The reason for that can be mentioned as difference of attitudes and skills from one person to another. Even the situation is that, after good training programme, all different type skilled one group of employees can get in to similar capacity, similar skilled group. That is an advantage of the trainings. In the field of Human Resources Management, Training and Development is the field concern with organizational activities which are aimed to bettering individual and group performances in organizational settings. It has been known by many names in the field HRM, such as employee development, human resources development, learning and development etc. Training is really developing employees capacities through learning and practicing. Training and Development is the framework for helping employees to develop their personal and organizational skills, knowledge, and abilities. The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the

organization and individual employees can accomplish their work goals in service to customers. 4 STATEMENT OF THE PROBLEAM A problem statement is a situation resulting from the interaction or juxtaposition of two or more factors (e.g., givens, constraints, conditions, desires, etc.) which yields (1) a perplexing or enigmatic state, (2) an undesirable consequence, or (3) a conflict which renders the choice from among alternative courses of action moot.

Functions of a Problem Statement 1. Establishing - to establish the existence of two or more juxtaposed factors which, by their interaction produce an enigmatic or perplexing state, yield an undesirable consequence, or result in a conflict which renders the choice from among alternatives moot. 2. Relating - to relate the problem to its antecedents (i.e., educational, scientific, social). 3. Justifying - to justify the utility, significance, or interest inherent in the pursuit of the problem. 4.1 (A) IDENTIFICATION OF THE PROBLEM Management development is aimed at preparing employees for future jobs with the organization or solving organization wide problems concerning, acquiring or sharpening capabilities required performing various tasks and functions associated with their presence or expected future roles. The motive behind this study is to understand and learn the impact of Training and Development programmes on employees two leading company of insurance sector. Hence the study is undertaken up to measure the Effectiveness of Training and Development at Executive and Non Executive levels employees two leading company of insurance sector Training cannot be measured directly but change in attitude and behaviour that occurs as a result of Training. So employee assessment should be done after training session by the management, to know the effectiveness of Training given to employees. 4.2 (B) BY CRITICAL READING

All employees want to be valuable and remain competitive in the labour market at all times, because they make some demand for employees in the labour market. This can only be achieved through employee training and development. Hence employees have a chance to negotiate as well as employer has a good opportunity to select most suitable person for his vacancy. Employees will always want to develop career-enhancing skills, which will always lead to employee motivation. There is no doubt that a well trained and developed staff will be a valuable asset to the company and thereby increasing the chances of his efficiency in discharging his or her duties. Trainings in an organization can be mainly of two types; Internal and External training sessions. Internal training involves when training is organized in-house by the human resources department or training department using either a senior staff or any talented staff in the particular department as a resource person. On the other hand external training is normally arranged outside the firm and is mostly organized by training institutes or consultants. Whichever training, it is very important for all staff and helps in building career positioning and preparing staff for greater challenges in developing world. However the training is costly. Because of that, people who work at firms do not receive external trainings most of times. The cost is a major issue for the lack of training programmes in Sri Lanka. But nowadays, a new concept has come with these trainings which is Trainers through trainees. While training their employees in large quantities, many countries use that method in present days to reduce their training costs. The theory of this is, sending a little group or an individual for a training programme under a bonding agreement or without a bond. When they come back to work, the externally trained employees train the employees who have not participated for above training programme by internal training programmes. Employers of labour should enable employees to pursue training and development in a direction that they choose and are interested in, not just in company-assigned directions. Companies should support learning, in general, and not just in support of knowledge needed for the employee's current or next anticipated job. It should be noted that the key factor is keeping the employee interested, attending, engaged, motivated and retained.

For every employee to perform well, especially Supervisors and Managers, there is a need for constant training and development. The right employee training, development and education

provides big payoffs for the employer in increased productivity, knowledge, loyalty, and contribution to general growth of the firm. In most cases external trainings for instance provide participants with the avenue to meet new set of people in the same field and network. The meeting will give them the chance to compare issues and find out what is obtainable in each others environment. This for sure will introduce positive changes where necessary.

It is not mentioned in any where that the employers, managers and supervisors are not suitable for training programmes. They also must be highly trained if they are expected to do their best for the organization. Through that they will have best abilities and competencies to manage the organization. Training employees not only creates a more positive corporate culture, but also add a value to its key resources. Raw human resources can make only limited contribution to the organization to achieve its goals and objectives. Hence the demands for the developed employees are continuously increasing. Thus the training is a kind of investment. 4.1 (C) PROBLEAMS IN TRENDS AND NEEDS Indian insurance sector has remained on rails even in the toughest of the times, thanks to the Insurance Regulatory and Development Authority (IRDA)'s tough and conservative apparatus. A sound insurance segment ensures better economic development as indicated by a study which states that 1 per cent increase in insurance penetration leads to 13 per cent reduction in uninsured losses and 22 per cent reduction in taxpayers' contribution to recovery following a natural catastrophe. Keeping pace with international happenings, Indian insurance industry has remained in a good health and maintained absolute transparency and highest standards of corporate governance. Assets under management (AUM) of the Indian insurers are slated to touch Rs 20 trillion (US$ 376.51 billion) while the general insurance sector is anticipated to grow 18 per cent in 2012-13, said J Hari Narayan, Chairman, IRDA. He further reported that the insurance sector has grown substantially over the last few years, with its AUM from Rs 8 trillion (US$ 150.57 billion) in 2008 to Rs 18 trillion (US$ 338.82 billion) in 2011-12. Indias insurance sector is expected to grow even faster than the countrys overall economic growth, opening up new business avenues across the industry. With a large number of insurance providers already operating in the country, the Indian insurance industry has shown

early signs of entering a consolidation phase, and an improved distribution infrastructure, the adoption of new channels and differentiated product offerings will continue to change the competitive landscape significantly. Indias low life insurance penetration rate and the rising awareness of the need for insurance will be key growth factors in the Indian insurance industry. Favorable foreign investment policies and increased capital-raising options will also create an environment for collaborations and joint ventures. Indias reinsurance market is also expected to continue growing, driven mainly by growth in non-life and accident and health insurance.

The report provides top-level market analysis, information and insights of the Indian life insurance industry, including: The Indian life insurance industrys growth prospects by product category and customer segment The various distribution channels in the Indian life insurance industry The competitive landscape in the life insurance industry A description of the life reinsurance market in India

This report provides a comprehensive analysis of the life insurance market in India: It provides historical values for Indias life insurance industry for the reports 20062010 review period and forecast figures for the 20112015 forecast period It offers a detailed analysis of the key sub-segments in Indias life insurance industry, along with market forecasts until 2015 It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total assets, total investment income and retentions It analyses the various distribution channels for life insurance products in India Using Porters industry-standard Five Forces analysis, it details the competitive landscape in India for the life insurance business It provides a detailed analysis of the reinsurance market in India and its growth prospects

It profiles the top life insurance companies in India, and outlines the key regulations affecting them

4.1 (D) EXTENSIVE INVESTIGATIONS Extensive investigation is process of enquiring in-depth about the problem statement through various sources such as books, journals, magazines, internet, observation study, studying trends, etc. In my research i have made investigation about the employees of two leading firms in insurance sector. A brief description about tourist and tour operator has been described below: Training and development play an important role in the effectiveness of organisations and tothe experiences of people in work. Training has implications for productivity, health and safety at work and personal development. All organisations employing people need to train and develop their staff. Most organisations are cognisant of this requirement and invest effort and other resources in training and development. Such investment can take the form of employing specialist training and development staff and paying salaries to staff undergoing training and development. Investment in training and development entails

obtaining and maintaining space and equipment. It also means that operational personnel, employed in the organisation's main business functions, such as production, maintenance, sales, marketing and management support, must also direct their attention and effort from time to time towards supporting training development and delivery. This means they are required to give less attention to activities that are obviously more productive in terms of the organisation's main business. However, investment in training and development is generally regarded as good management practice to maintain appropriate expertise now and in the future. 5 HYPOTHESIS OF THE STUDY Research hypotheses are the specific testable predictions made about the independent and dependent variables in the study. Usually the literature review has given background material that justifies the particular hypotheses that are to be tested. Hypotheses are couched in terms of the particular independent and dependent variables that are going to be used in the study.

Here null hypothesis Ho is, Training and development increase the productivity of employees. Where alternate Hypothesis H1 is, Training and development do not increase the productivity of employees.

To understand the Training programmes and their impact on employees of insurance sector. To analyze the views and opinions of the employees regarding the programmes provided at two leading firm of insurance sector. To find out the satisfaction level of the employees towards the Training programs. To study the perception of the employees about the usefulness of the training program with reference to the improvement in their performance and skill enhancement. To know the present condition of Training and Development programmes. To know the expectation of employees towards Training and Development programmes. To know the willingness of employees towards Training and Development programmes.