A PROJECT REPORT ON

. “COMPETENCY MAPPING AND TRAINING NEED STUDY/ANALYSIS OF MANAGERS

AT ITC Ltd EDO (Eastern District Office), KOLKATA”

A Project Report Submitted in Partial Fulfillment of

Master of Business Administration (MBA)
In
NORTH EASTERN REGIONAL INSTITUTE OF MANAGEMENT

(Affiliated to Dibrugarh University and Appoved by AICTE)

Under the Guidance of

Institutional Guide Organizational Guide
Ms. Pubali Borthakur Mr. Anirban Routh
Faculty,NERIM,Guwahati Assistant H.R Manager, (EAST),ITC Ltd.

Submitted by:
Soma Chakraborty
MBA 4th SEMESTER , ROLL-68
EXECUTIVE SUMMARY

Project Title: “COMPETENCY MAPPING AND TRAINING NEED STUDY/ANALYSIS OF

MANAGERS AT ITC Ltd EDO (Eastern District Office), KOLKATA”

Organization: ITC Ltd, Kolkata.

Organization guide: Mr. Anirban Routh

Assistant Manager, H.R (EAST)

ITC Ltd EDO, Kolkata.

Institutional guide: Ms. Pubali Borthakur,

Faculty, NERIM, Guwahati

Duration Of the study: - 1st June 2010 to 31st August 2010

Primary Objective:

• To identify the competency gaps and traininig need study/analysis of managers at ITC Ltd EDO
(Eastern District Office), Kolkata.

Secondary Objective:

• To know whether training is designed keeping in mind the organization and individual goals.
• To know whether training programs fulfill trainee’s requirements.
• To identify the training gaps and successfully close the gaps.

INTRODUCTION OF THE STUDY

An HRD approach is essential in order to have optimum utilistion of manpower for the benefit of both the
employees and the organization. HRD is a strategy to transform human resource inputs into outputs. HRD in
industry is done through education, training and development to improve knowledge , skills and attitude of
individual and organization. This is possible only through systematic training:

Human Resource Management is improvement of inception, development, motivation, maintenance of human

resource in the organization. Like every modern organization ITC also wishes to have individuals qualified to
accept responsibilities .For this company needs to provide opportunities for continuous employee
development not only for the present job but also their future job. This is possible through effective training
need analysis of the employees as per the organizational goals.

ISSUE OF THE STUDY

Man, material, machine and money are four factors of production. Human being constitutes the organization
at all levels and is the only dynamic factors of production. It is relatively easy to handle other resources.

In modern competitive world and organization an organization should have competent working personal for
sufficient work environment and increased production. Keeping these points in mind, the issue of the study is
to identify what type of training is needed for which employee based upon the behavioral competencies.

OBJECTIVES OF THE STUDY

. Primary Objective:

• To identify the competency gaps and traininig need study/analysis of managers at ITC Ltd EDO
(Eastern District Office), Kolkata.

Secondary Objective:

• To know whether training is designed keeping in mind the organization and individual goals.
• To know whether training programs fulfill trainee’s requirements.
• To identify the training gaps and successfully close the gaps.

SCOPE OF THE STUDY

• The objective and issue of the study itself define the scope.
• Scope of the study is confined to Eastern Region.
A BRIEF INTRODUCTION TO COMPETENCY
MAPPING
Competency mapping identifies an individual’ strengths, weaknesses in order to help them better understand
themselves and to show them where career development efforts need to be directed. Competency mapping is
a process of identifying key competencies for an organization and/or a job and incorporating those
competencies throughout the various processes (i.e. job evaluation, training, recruitment) of the organization.
We would define a competency as behaviour (i.e. communication, leadership) rather than a skill or ability.
Competencies are derived from specific job families within the organization and are often grouped around
categories, such as strategy, relationships, innovation, leadership, risk-taking, decision-making, emotional
intelligence, etc.

The word “competencies” is used in many contexts, with very different meanings. Basically, competencies
fall into three categories or types:

1. Organizational competencies — unique factors that make an organization competitive

2. Job/Role competencies—things an individual must demonstrate to be effective in a job, role, function, task,
or duty, an organizational level, or in the entire organization.

3. Personal competencies—aspects of an individual that imply a level of skill, achievement, or output.

• The basic personal competencies encompass the following:

Intellectual Competencies: Those which determine the intellectual ability of a person.
• Motivational Competencies: Those which determine the level of motivation in an individual.
• Emotional Competencies: Those which determine an individual's emotional quotient.
• Social Competencies: Those that determine the level of social ability in a person.

The steps involved in competency mapping are presented below:

a) Conduct a job analysis by asking incumbents to complete a position information questionnaire (PIQ).
This can be provided for incumbents to complete, or used as a basis for conducting one-on-one
interviews using the PIQ as a guide. The primary goal is to gather from incumbents what they feel are
the key behaviors necessary to perform their respective jobs.

b) Using the results of the job analysis, a competency based job description is developed. It is
developed after carefully analyzing the input from the represented group of incumbents and
converting it to standard competencies.

c) With a competency based job description, mapping the competencies can be done. The competencies
of the respective job description become factors for assessment on the performance evaluation. Using
competencies will help to perform more objective evaluations based on displayed or not displayed
behaviors.

d) Taking the competency mapping one step further, one can use the results of one’s evaluation to
identify in what competencies individuals need additional development or training. This will help in
focusing on training needs required to achieve the goals of the position and company and help the
employees develop toward the ultimate success of the organization.
TECHNIQUES USED IN COMPETENCY MAPPING

“Job evaluation” based competency mapping include the following steps:

• Conduct a job analysis by asking incumbents to complete a Role Profile Questionnaire – The primary
goal, is to gather from incumbents what they feel are the key behaviors necessary, to perform their
respective goals.

• Using the results of the job analysis, we develop a competency based job description.

• With a competency based job description, we begin mapping the competencies throughout the human
resource processes. The competencies of the respective job description become the factors for
assessment on performance evaluation.

• By taking the competency mapping one step further, we use the results of the evaluation, to identify
in what competency individuals need additional development or training. This will help in focusing
the training needs on the goals of the position and company and help employees develop, toward the
ultimate success of the organization.

“Role Profiling/Job Analysis Tools” – It helps companies to extract knowledge of core competency
requirements from internal experts, and allows the company to have any number of job expert raters to
contribute ratings on a standard competency scale for any job title or position.

“Experts Panel” – In this method, a panel of experts (superior performers, immediate supervisors,
consultants, HR managers) is constituted and asked to brainstorm inorder to share the knowledge, skill know
the attitude have a better self-conception and understand the motivation of the team for superior performance
of a particular job. After detailed deliberation for a few hours and in some cases for a couple of days the panel
lists out the competency requirements.

“360 ° multi-rater feedback” – Such surveys allow employees to rate themselves on global competencies
and specific behaviours. Predefined groups of supervisors, peers, direct reports, or customers who perform
ratings of persons on the same items, with the resulting report provide a detailed analysis of self- other gaps in
perceived competency behaviours.

Behavioural Event Interview” – Behavioural Event Interview (BEI) basically intends to find out what
people really do instead of hearing the stories about what they wanted to do or what they propose to do. In
other words BEI finds out the knowledge, skill, motives, traits, and self-concept from their behavioural
actions, which are verifiable, rather than through abstract explanations. The BEI method includes Thematic
Apperception Test (TAT) probes, which yield data about the interviewees’ personality and cognitive style like
what they think about, feel and want to accomplish in dealing with the situation. This enables interviewers to
measure competencies such as achievement motivation or logical ways of thinking and solving problems.

“Critical Incident Technique” – The Critical Incident Technique (CIT) was developed by John Flanagan, to
identify behaviour that contributes to the success or failure of individuals or organizations in specific
situations. Despite numerous variations in procedures for gathering and analyzing critical incidents
researchers and practitioners agree the critical incidents technique can be described as a set of procedures for
systematically identifying behaviours that contribute to success or failure of individuals or organisations in
specific situations. First of all, a list of good and bad on the job behaviour is prepared for each job. A few
judges are asked to rate how good and how bad is good and bad behaviour, respectively. Based on these
ratings a check-list of good and bad behavior is prepared.

The next task is to train supervisors in taking notes on critical incidents or outstanding examples of success or
failure of the subordinates in meeting the job requirements. The incidents are immediately noted down by the
supervisor as he observes them. Very often, the employee concerned is also involved in discussions with his
supervisor before the incidents are recorded, particularly when an unfavourable incident is being recorded,
thus facilitating the employee to come out with his side of the story.

The objective of immediately recording the critical incidents is to improve the supervisor’s ability as an
observer and also to reduce the common tendency to rely on recall and hence attendant distortions in the
incidents. Thus, a balance-sheet for each employee is generated which can be used at the end of the year to
see how well the employee has performed. Besides being objective a definite advantage of this technique is
that it identifies areas where counseling may be useful.

In real world of task performance, users are perhaps in the best position to recognize critical incidents caused
by usability problems and design flaws in the user interface.Critical incident identification is arguably the
single most important kind of information associated with task performance in usability -oriented context.

Following are the criteria for a successful use of critical incident technique:

a) Data are centered on real critical incidents that occur during a task performance.

b) Tasks are performed by real users.

c) Users are located in their normal working environment.

d) Data are captured in normal task situations, not contrived laboratory settings.

e) Users self report their own critical incidents after they have happened.
f) No direct interaction takes place between user and evaluator during the description of the incident(s).

g) Quality data can be captured at low cost to the user.

Critical Incidents Technique is useful for obtaining in-depth data about a particular role or set of tasks. It is
extremely useful to obtain detailed feedback on a design option. It involves the following three steps:

Step 1: Gathering facts: The methodology usually employed through an open-ended Questionnaire, gathering
retrospective data. The events should have happened fairly recently: the longer the time period between the
events and their gathering, the greater the danger that the users may reply with imagined stereotypical
responses. Interviews can also be used, but these must be handled with extreme care not to bias the user.
There are two kinds of approaches to gather information:

1) Unstructured approach: where the individual is asked to write down two good things and two bad things
that happened when one was carrying out an activity.

2) Moderate structured approach: where the individual is asked to respond to following questions relating
to what happened when he/she was carrying out an activity.

1) What lead up to the situation?

2) What was done that was especially effective or non- effective?

3) What was the result (outcome)?

Step 2: Content analysis: Second step consists of identifying the contents or themes represented by the
clusters of incidents and conducting “retranslation” exercises during which the analyst or other respondents
sort the incidents into content dimensions or categories. These steps help to identify incidents that are judged
to represent dimensions of the behavior being considered. This can be done using a simple spreadsheet. Every
item is entered as a separate incident to start with, and then each of the incidents is compiled into categories.
Category membership is marked as identical, quite similar and could be similar. This continues until each
item is assigned to a category on at least a “quite similar” basis. Each category is then given a name and the
number of the responses in the category is counted. These are in turn converted into percentages (of total
number of responses) and a report is formulated.

Step 3: Creating feedback: It is important to consider that both positive and negative feedback be provided.
The poor features should be arranged in order of frequency, using the number of responses per category.
Same should be done with the good features. At this point it is necessary to go back to the software and
examine the circumstances that led up to each category of critical incident. Identify what aspect of the
interface was responsible for the incident. Sometimes one finds that there is not one, but several aspects of an
interaction that lead to a critical incident; it is their conjunction together that makes it critical and it would be
an error to focus on one salient aspect.
Some of the advantages of critical incident technique are presented below:

a) Some of the human errors that are unconsciously committed can be traced and rectified by these methods.

b) Users with no background in software engineering or human computer interaction, and with the barest
minimum of training in critical incident identification, can identify, report, and rate the severity level of their
own critical incidents. This result is important because successful use of the reported critical incident method
depends on the ability of typical users to recognize and report critical incidents effectively.

Some of the disadvantages of critical incidents method are presented below:

a) It focuses on critical incidents therefore routine incidents will not be reported. It is therefore poor as a tool
for routine task analysis.

b) Respondents may still reply with stereotypes, not actual events. Using more structure in the form improves
this but not always.

c) Success of the user reported critical incident method depends on the ability of typical end users to
recognise and report critical incidents effectively, but there is no reason to believe that all users have this
ability naturally.

“Survey Method” – In the survey method, the HR department or the consultants based on their understanding
of the job roles will prepare a questionnaire containing various competencies. The questionnaires will be then
distributed to the role holders, their supervisors and any other persons (like HR professionals and consultants)
who are thoroughly knowledgeable about the concerned job roles. The information collected through the
questionnaire is then analyzed using descriptive statistical tools to determine the core competencies required
and close competency the gap for successful performance of the said job.

“Repertory Grid” – The propounded of this method was George Alexander Kelly was born in (1905-1967)
Kansas, U.S.A. In 1955, the two-volume work, The Psychology of Personal Constructs, (PCT) was published
and gained immediate recognition as a unique and major development in the study of personality. Even today
no reading in personality theory is complete without the theory of personal constructs developed by Kelly.

The key points of PCT to remember are:

• Perceptions influence expectations, and expectations influence perceptions.

• The medium through which this happens is known as the construct system.

• Construct systems are unique to the individual and develop throughout life.

Repertory Grid will help to draw out and make explicit the expertise that every manager has, and help lay out
their problems in such a way that solutions may become more obvious. It allows the interviewer to get a
mental map of how the interviewee views the world, and to write this map with the minimum of observer
bias. Kelly’s practice is then not to have this map ‘interpreted’ by an expert, who judges where the problems
and stresses are; rather Kelly’s approach is to discuss the map with the interviewee, to talk about things that
perhaps the interviewee had not faced about himself before, to discuss with the interviewee the survival value
of that particular map as a means of navigating around his or her life-space.

The theory of personal construct is being used in multiple applications and understanding it requires
substantial reading .In repertory grid technique, respondents are asked to think of the top ten performers and
ten poor performers they have witnessed in a role. They are asked to give behaviours that differentiate the
best from the worst. These behaviours are used to create appropriate constructs for arriving at successful
behaviors .In the repertory grid process the respondents will identify a set of superior performers and another
group of ineffective performers. They to justify their identification of people will identify a set of variables:

• Knowledge

• Skill

• Attitude

• Ethic

• Self Concept

• Appearance, etc

which are associated with superior and average performers.

Assessment Centre

“Assessment Centre” is a mechanism to identify the potential for growth. An essential feature of the
assessment center is the use of situational test to observe specific job behavior. Since it is with reference to a
job, elements related to the job are simulated through a variety of tests. The assessors observe the behavior
and make independent evaluation of what they have observed, which results in identifying strengths and
weaknesses of the attributes being studied.

The International Personnel Management Association (IPMA) has identified the following elements, essential
for a process to be considered as assessment center:

a) A job analysis of relevant behavior to determine attributes skills, etc. for effective job performance and
what should be evaluated by assessment center.

b) Techniques used must be validated to assess the dimensions of skills and abilities.

c) Multiple assessment techniques must be used.

d) Assessment techniques must include job related simulations.

e) Multiple assessors must be used for each assessed.

f) Assessors must be thoroughly trained.

g) Behavioral observations by assessors must be classified into some meaningful and relevant categories of
attributes, skills and abilities, etc.

h) Systematic procedures should be used to record observations.

i) Assessors must prepare a report.

j) All information thus generated must be integrated either by discussion or application of statistical
techniques.

Data thus generated can become extremely useful in identifying employees with potential for growth.
Following are some of the benefits of the assessment center:

a) It helps in identifying early the supervisory/ managerial potential and gives sufficient lead time for training
before the person occupies the new position.

b) It helps in identifying the training and development needs.

c) Assessors who are generally senior managers in the organization find the training for assessor as a relevant
experience to know their organization a little better.

d) The assessment center exercise provides an opportunity for the organization to review its HRM policies.

Assessment Centre is a complex process and requires investment in time. It should safeguard itself from
misunderstandings and deviations in its implementation. For this, the following concerns should be ensured:

a) Assessment Centre for diagnosis is often converted as Assessment Centre for prediction of long range
potential.

b) The assessors’ judgment may reflect the perception of reality and not the reality itself.

c) One is not sure if the benefits outweigh the cost.

Assessment Centre comprises a number of exercises or simulations which have been designed to replicate the
tasks and demands of the job. These exercises or simulations will have been designed in such a way that
candidates can undertake them both singly and together and they will be observed by assessors while they are
doing the exercises. Most organizations use a combination of exercises to assess the strengths, weaknesses
and potential of employees. These are group discussions, positive task roles, role plays, interviews etc.

It is difficult to suggest which method is more useful or more accurate. Some methods are easy to use but
quality of data may be inadequate. Some others may yield superior quality data but expensive and time
consuming. Certain methods and tools are such that they cannot be used in all the cases. Some jobs may
require the use of more than one method or tool for their mapping.
A BRIEF
INTRODUCTION
TO
TRAINING & DEVELOPMENT
Training and Development

Definition: “Training is the formal and systematic modification of behavior through learning which occurs as
a result of education, instruction, development and planned experience”.

Training and development constitute an ongoing training process in any organization. Training involves an
expert working with learners to transfer to them certain areas of knowledge or skills to improve in their
current jobs. Development is a broad, ongoing multi faceted set of activities ( training activities among them)
to bring someone or an organization upto another threshold of performance, often to perform same job new
role in the future.

The purpose of training

The aim of training is to help the organization achieve its purpose by adding value to its purpose by adding
value to its key resource – the people it employs. The purpose of training is to :

• To increase productivity and quality.

• To promote versatility and adaptability to new methods.
• To reduce the number of accidents.
• To reduce labour turnover.
• To increase job satisfaction.
• To increase efficiency.

Analysing training needs:

An analysis of training need is essential requirement to design effective training. The purpose of training need
analysis is to determine whether there is gap between what is required for effective performance and present
level of performance.

Training need analysis is conducted to determine whether resources are available or not. It also helps to plan
budget to the company,areas where training is required and also highlights the occasion where training might
not be appropriate and alternative action is required. Training need arises on three levels.

Organisation Level Training Need: Training needs analysis on organization level focuses on strategic
planning, business need and goals. It starts with the assessment of internal environment of the organization
such as, procedures, structures, policies, strengths, and weaknesses and external environment such as
opportunities and threats. After doing the SWOT analysis, weaknesses can be dealt with the training
interventions, while strengths can further be strengthened with continued training. Threats can be reduced by
identifying the areas where training is required. And, opportunities can be exploited by balancing it against
costs. For this approach to be successful; the HR department of the company requires to be involved in
strategic planning. In this planning, HR develops strategies to be sure that the employees in the organization
have the required Knowledge, Skills, and Attributes (KSAs) based on the future KSAs requirements at each
level. Based on the information collected, training Need analysis (TNA) is done.
Operational Level – Training Need analysis at operational level focuses on the work that is being assigned to
the employees. The job analyst gathers the information on whether the job is clearly understood by an
employee or not. He gathers this information through technical interview, observation, psychological test;
questionnaires asking the closed ended as well as open ended questions, etc. Today, jobs are dynamic and
keep changing over the time. Employees need to prepare for these changes. The job analyst also gathers
information on the tasks needs to be done plus the tasks that will be required in the future.

Individual Level – Training need analysis at individual level focuses on each and every individual in the
organization. At this level, the organization checks whether an employee is performing at desired level or the
performance is below expectation. If the difference between the expected performance and actual
performance comes out to be positive, then certainly there is a need of training.

However, individual competence can also be linked to individual need. The methods that are used to analyze
the individual need are:

• Appraisal and performance review

• Peer appraisal

• Competency assessments

• Subordinate appraisal

• Client feedback

• Customer feedback

• Self-assessment or self-appraisal

The Five Basic Steps for training need analysis:

• Analyse the situation.

• Evaluate the training in place.
• Identify Gaps.
• Assess the options.
• Choosing the solution.

ANALYSE THE SITUATION: The most important step in choosing the right training for organization is
learning what we need. Oftentimes, businesses opt for "too little, too late" in employee training. This leaves
employees with incomplete or inappropriate solutions. Therefore, it's best to perform a training needs analysis
early in the process. An experienced training specialist can lead a company's focus toward the right questions.
For example, a needs assessment for an employee training project might ask the following questions:

• Are we making any major changes in our business process?

• How do those changes impact our employees' job functions?

• What information and training will our employees need to continue being successful in their jobs?
 • How will our employees’ best accept and integrate this information and training?

• How best do our employees learn?

• What is the best way that we can get this information and training to our employees?

• Are there any corporate needs that are not being met?

• Does our staff have the skills they need to do their jobs effectively?

Evaluate the Training in Place

Even if a company doesn't yet have a formal training department, there may already have some existing
employee training materials. These valuable training materials can serve as a starting point and may include:

• Detailed corporate training manuals

• New hire orientation materials

• Online resources and references

These materials can and should become an integral part of any new training solution. Review the procedures
that are already in place, before adapting them.

IDENTIFY GAPS: The next step is to identify current practices and the change initiative that is required.
Scanning the resources available to prepare and deliver training like identifying what an organization can or
cannot provide is a crucial part of need analysis. Following are few examples of gaps that an organization can
identify:

1. How much cost would be incurred?

2. Is the current required resource available?
3. Is the staff confident enough to handle the task?
4. Do we have enough time planned to complete the task along with other currently running projects?

Assess the Options

Once an organization has established the requirements of its needs analysis, it can utilize that knowledge to
assess the options i.e. whether to outsource the trainers or not. There are literally hundreds of companies and
individual consultants waiting to tend the training needs. When choosing the training solution that will best
meet an organization's needs, one should consider the following questions:

• Does this company or individual have a proven track record of satisfied customers and positive
returns on training money spent?

• Do they understand and work well with the organization’s business culture?

• Will they be able to fill in all the gaps that have been identified?

• Can they provide multiple delivery options?

Choosing the Solution

Taking everything into account found up to this point, choose the option that can best meet an
organizations needs. It’s often best to perform a preliminary needs assessment, and then allow an
experienced training professional to review organization’s analysis and offer helpful additions or
suggestions which can help the company better prepare for change and growth, but understanding the
company's idiosyncrasies will help them decide what is best to advice.

Some questions to think about while an organization is choosing a solution

• Did the needs analysis address already-established issues?

• What other gaps did the needs analysis uncovers, and are they relevant to the organizational culture?

• If the training program is conducted by through outsourcing will the consultant be able to provide
timely solutions and multiple options?

• Does the consultant seem to "get" the organizations corporate culture, enough to advise accordingly?
COMPANY PROFILE
There are very few business enterprises across the world, which at 100 years, are still firing on all cylinders to
reach an even higher orbit of growth. ITC is one such enterprise. ITC completed 100 years on August
24,2010.

The ITC story is one of transformation from a single product company to one of India’s largest multi-business
corporate enterprises in the private sector. This long and inspirational journey of challenge and change has
unfolded in tandem with India’s own evolution and growth across ten decades. These 100 inspiring years
have been marked by an overarching Vision to serve a larger national purpose, to live by the strong Values of
Trusteeship and to nourish internal Vitality to create superior value for all stakeholders.

It has been the journey of an organisation that has consciously put Country before Corporation - an enterprise
that proudly echoes the credo ‘Let’s Put India First’. It has been a journey of leadership, not only in
shareholder value creation, but also in serving all stakeholders and in meeting societal expectations. It has
been a voyage that has brought ITC global recognition as an exemplar in sustainability practices - the only
company in the world of its size to be carbon positive, water positive and solid waste recycling positive.
This long and eventful travel across a century has been particularly meaningful and satisfying because it has
enabled ITC to create over 5 million sustainable livelihoods.

With a market capitalisation of more than Rs.100,000 crores, ITC steps into its next century with an
ambitious portfolio of businesses for tomorrow that span Fast Moving Consumer Goods, Paper & Packaging,
Hotels, Agri-Business and Information Technology. Its aspirations are matched by its formidable array of
enterprise capabilities - deep consumer insights, international quality products, world-class human capital,
globally contemporary business processes, powerful brands, an excellent trade marketing and distribution
infrastructure and investments in cutting-edge R&D.

Like all long and eventful journeys, ITC’s too had a small beginning, way back in 1910 when the British
owned Imperial Tobacco Company set foot in Calcutta. The mass produced cigarette was still a novelty then.
High quality Virginia tobaccos had never been grown in this vast subcontinent. Even before the Company
was registered as ‘Imperial Tobacco’, it had already set up India’s first cigarette factory at Munger (1908) and
commenced tobacco leaf buying operations in Andhra Pradesh (1909). Around 1911, the Company started
working in partnership with farmers in South India for crop development. The Indian Leaf Tobacco
Development Company was set up in 1912.

The focus, even then, was on exploration, improvisation and innovation.

Working with farmers and experts, right blends were developed from
tobacco grown in untried tracts. New sources were located and farming
was encouraged and supported. Ways and means to reach products to
markets across vast distances in a poorly connected subcontinent were
found and fostered. Communicating in a dozen different languages
across a patchwork of cultures, the Company honed its skills in building
and growing brands and nurturing markets. At the time of
Independence, ITC had achieved self-sufficiency in raw material by
helping to establish the cultivation of flue-cured Virginia tobacco in the
country. It had five cigarette and two leaf processing factories, one
printing and packaging unit and was in the process of setting up another
- one of the most modern of that time.
Manufacturing in those days was heavily import-dependent. Aspiring for a self-
sufficient future, the Company spearheaded indigenisation of all aspects of production,
working in collaboration with other companies and small-scale ancillary units. By the
late 50s, its imports had fallen to a fraction and, by 1969, virtually all materials were
sourced from within the country.

The early 70s witnessed a momentous turning point. The Foreign

Exchange Regulation Act of 1973 came into being. The regulatory
pressure on corporates to reduce foreign ownership combined with the
vision of the first Indian Chairman Shri Ajit Narain Haksar, paved the
way for Indianisation of the Company and its Management. The vision
was to build an Indian enterprise that would derive its inspiration from
the needs of Indian society and craft its growth strategies accordingly. It
triggered ITC’s first major diversification into the Hotels business
(1975), followed by its entry into the Paperboards business (1977). Both
were critical nation-building interventions. The hotel industry would
open new avenues for foreign exchange earnings by boosting tourism.
The engagement with the paperboard industry would mark ITC’s entry
into the core sector, with an opportunity to create livelihoods in a backward area.

This changing character of the Company found expression in the change of its name from Imperial Tobacco
Company of India Limited to India Tobacco Company Limited in 1970, moving on to I.T.C. Limited in 1974
and finally to the current form of ‘ITC Limited’ without full stops in 2001.

In the decade and a half following the initial diversification forays into hotels and paperboards, the Company
ran into severe challenges. These were highly capital-intensive businesses which made huge demands on the
Company’s resources. Since these businesses were structured as separate companies during this period, their
ability to raise capital and achieve meaningful scale was stunted. Consequently, these businesses remained on
a slow growth path.

The decade from the mid-eighties to the mid-nineties witnessed feverish strategic activities. The Company
entered the financial services business and set up ITC Classic Finance Ltd. Almost simultaneously it entered
the edible oils business and set up ‘ITC Agro Tech Ltd.’, which was to later launch the popular brand
‘Sundrop’. During this period, the Hotels business took its iconic restaurant ‘Bukhara’ beyond the shores of
India into New York and Chicago. ITC acquired the specialty papers company ‘Tribeni Tissues Ltd.’.
Aspiring to become an international trading house in the likeness of a Japanese ‘sogo shosha’, ‘ITC Global
Holdings Pte Ltd.’ was set up in Singapore. Additional capital was raised through an issue of Global
Depository Receipts to finance the Company’s expanding profile.

When the current Chairman took over in 1996, ITC was experiencing an unenviable mix of challenges: its
core cigarette business had just been slapped with a retrospective excise duty demand of Rs. 803 crores; its
earlier diversifications into hotels and paperboards had not reached fruition for want of adequate investments;
its more recent forays into financial services, edible oils and international trading were still incurring losses;
the Company’s weak diversification performance was facing severe criticism; to compound matters, a battle
for control of the Company had ensued amidst a huge public smear campaign which significantly damaged its
reputation; and India had just entered into a phase of economic liberalisation, changing the country’s
competitive landscape beyond recognition.
The ITC Way
ITC is a board-managed professional company, committed to creating enduring value for the shareholder and
for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in
empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies
and systems.

ITC’s corporate strategies are :

• Create multiple drivers of growth by developing a portfolio of world class businesses that best
matches organisational capability with opportunities in domestic and export markets.

• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri
Business and Information Technology.

• Benchmark the health of each business comprehensively across the criteria of Market Standing,
Profitability and Internal Vitality.

• Ensure that each of its businesses is world class and internationally competitive.

• Enhance the competitive power of the portfolio through synergies derived by blending the diverse
skills and capabilities residing in ITC’s various businesses.

• Create distributed leadership within the organisation by nurturing talented and focused top
management teams for each of the businesses.
 • Continuously strengthen and refine Corporate Governance processes and systems to catalyse the
entrepreneurial energies of management by striking the golden balance between executive freedom
and the need for effective control and accountability.

ITC LEADERSHIP
Flowing from the concept and principles of Corporate Governance adopted by the Company,
leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of
shareholders, carries the responsibility for strategic supervision of the Company. The strategic
management of the Company rests with the Corporate Management Committee comprising the
whole time Directors and members drawn from senior management. The executive management of
each business division is vested with the Divisional Management Committee (DMC), headed by the
Chief Executive. Each DMC is responsible for and totally focused on the management of its
assigned business.

This three-tiered interlinked leadership process creates a wholesome balance between

the need for focus and executive freedom, and the need for supervision and control.

Board of Directors
CHAIRMAN
Y C Deveshwar

EXECUTIVE DIRECTORS
K Vaidyanath K N Grant

NON-EXECUTIVE DIRECTORS
A Baijal S Banerjee AV Girija Kumar

S H Khan S B Mathur D K Mehrotra

H G Powell P B Ramanujam Anthony Ruys

Basudeb Sen B Vijayaraghavan

DIVISIONAL MANAGEMENT COMMITTEE (DMC) OF INDIAN
TOBACCO DIVISION:-
Sanjiv Puri - Divisional Chief Executive.

H. Malik - Member.

A.K. Mukerji – Member.

The ITC Vision & Mission:

ITC VISION: Sustain ITC’s position as one of India’s most

valuable

Corporation through world class performance,

Creating growing value for the Indian economy and

the company’s stakeholders

Mission

To enhance the wealth generating capability

of the enterprise in a globalizing environment,

delivering superior and sustainable

Stakeholder value

.
COMPETENCY MAPPING IN ITC
The process of competency mapping in ITC: The process of competency mapping
can be understood from the following chart:
However to have an broader insight into the process the steps mentioned in above chart are briefly described
as follows:

1.COMPETENCY IDENTIFICATION: The organizational framework of ITC has identified five basic
competencies and thrusts on the presence and continuous cultivation of five basic competencies among its
managers to accomplish organizational goals. For each competency again specific sub-competencies have
been identified. The competency and sub-competency groupings are as follows:

ORGANISATIONAL FRAMEWORK OF ITC Ltd. REGARDING THE MANAGERIAL

COMPETENCY:

ORGANIZATIO INNOVATION PEOPLE RESULT DEVELOPING

N AND & LEADERSHIP ORIENTATIO SELF &
BUSINESS CONTINUOUS N OTHERS
FOCUS IMPROVEMEN
T

1.BUSINESS 1. CONTINUOUS 1.COMMUNICATIO 1.OBJECTIVE 1.SELF

ENVIRONMENT IMPROVEMENT N & ALIGNMENT. SETTING. DEVELOPMEN
& PROBLEM T
SOLVING 2.RESOURCE
MANAGEMENT
2 .TEAMWORK & EXECUTION
EXCELLANCE. 2.
2. BUSINESS .2. BEST DEVELOPMEN
PLAN/ PRACTICE 3.DECISION T OF OTHERS.
STRATEGY 3.PERSONAL
SHARING & MAKING.
EXAMPLE & ROLE
REPLICATION.
MODELLING. 4.COST
CONCIOUSNES
CUSTOMER
S
RELATIONSHIP
2. YEARLY COMPETENCY PLANNING:

The competency mapping process in ITC starts with the appraisal system. An individual self-assesses his/her
competency required to accomplish the objectives of the business unit,the 1st Reviewer who is the immediate
boss rates the individual on how he/she attains the objective and rating is finalized by endorsement of the 2 nd
Reviewer who is 1st Reviewer’s reporting authority. ITC has a particular organizational framework for filling
up the COMPETENCY MAPPING process which is to be filled by the reviewer and reviewee based on
review discussion.

A sample form format which is to be filled by the reviewer and reviewee is given below:

PERSONAL DETAILS

NAME:

EMPLOYEE NO:

DESIGNATION:

JOB LEVEL:

GRADE:

FUNCTION:

UNIT:

PERIOD UNDER REVIEW: TO

1ST REVIEWER

(Name & Designation)

2nd REVIEWER

(Name & Designation)

Competency Sub-competency Proficiency Level Areas of strength and development

Organisation & Business Environment Area of strength:

Business Focus
1: Competency Area( Sub-competency)

2: Competency Area( Sub-competency)

Business Plan/Strategy
3: Competency Area( Sub-competency)

Customer Relationship

Innovation & Continuous Improvement &

Continuous problem solving
Improvement

Best practice sharing &

replication

People Leadership Communication & alignment

Team work

Personal Example & Role Area of Development:

Modeling
1: Competency Area( Sub-competency)

2: Competency Area( Sub-competency)

3: Competency Area( Sub-competency)

Result Orientation Objective Setting

Resource management &

execution excellence

Decision making

Cost conciousness

Developing Self Self Development

& others

Development for others

ITC has a particular organizational framework for filling up the COMPETENCY MAPPING process
which is to be filled by the reviewer and reviewee based on review discussion on the following five scales of
proficiency level:

1: Rarely 2: Inconsistent Demonstration 3: Consistent Demonstration

Demonstrated

4: Consistent Demonstration with finer nuances 5: Can coach others

However not more than 3 areas of strength and development should be mentioned in the form as per
organizational guideline.

3. REVIEW AFTER ONE YEAR: The planned competencies for individual executives are to be reviewed
periodically to assess whether the planned parameters are achieved or not.

The sample format for the review form is as follows:

To ascertain the implementation of plan and record reasons of non-adherence the sample
format is:

Competency Development Plan Adherence(Yes/No) If no reasons

To finalize the development plan for the current yeas not more than two areas are to be
prioritized.The sample format for the identifying the said purpose is as follows:

Competency Sub-competency Expected Input Input Details*

behaviour type(OTJ/Self-
learning/Training
Program)
Name of the Date and signature
Reviewee
Name of the 1st Date and signature
Reviewer
Name of the 2nd Date and signature
Reviewer
*To be filled with the HR Manager-Reference Guide

4. IDENTIFY THE GAPS: The next step is to identify the gaps by comparing the planned
proficiency level with that of the achieved in the subsequent year.

5. CLOSE THE GAPS: The last yet the most important step is to come up with an effective plan to
close the gaps where it exist through the following:

➢ Counselling.
➢ Self-learning.
➢ OTJ.
➢ Training Program.
➢
This study has been undertaken to study the competency mapping of managers from LEVEL -4 to LEVEL-6.
Considering the experience and the seniority of the managers at different levels of the management the
responsibilities are defined and the job activities are specified as follows:

LEVEL -7: Area Executive, their job responsibilities mainly comprises of fieldwork, execution and
followership.

LEVEL-6: Area Managers, their job responsibilities involves along with execution some level of planning.

LEVEL-5: Assistant Managers, their responsibilities generally involves planning, coordination and analysis.

LEVEL-4: Regional Managers and Branch Managers, they are responsible for strategizing for a larger
work group/ exercise a larger span of control.
 RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

Objective of the study:

Primary Objective:

• To identify the competency gaps and traininig need study/analysis of managers at ITC Ltd EDO
(Eastern District Office), Kolkata.

Secondary Objective:

• To identify the competency gaps gaps and successfully close the gaps.
• To identify the training needs.
• To design the training programs accordingly.

RESEARCH AREA: ITC EASTERN DISTRICT OFFICE, KOLKATA.

Universe: Universe belongs to Level 4, 5 and Level 6 managers

belonging to ITC.

Research Method: Unstructured research method.

• The organizational framework ITC has identified the presence of some core
competencies to enhance the performance of the employees. The main
objectives were:
➢ To identify the competency gaps among managers.
➢ To suggest measures to successfully close the gaps.
➢ To define the training needs for each level of managers.
➢ To design the training program accordingly.

• In ITC each employee’s manager discusses training and development needs during the
final part of the performance appraisal discussion. This method suits where training needs
are highly varied amongst individual employees. Typically, the manager constructs an
employee Performance Development Plan in collaboration with the employee being
appraised. The Plan takes into consideration:

➢ the organization's strategies and plans

➢ agreed employee goals and targets
➢ the employee’s performance results
➢ the employee’s role description
 ➢ the employee’s stated career aspirations

• A planned score of competency was undertaken in the year 2008-09

for different level of managers.
• In 2009-10 the achieved competency score was assigned against the
same managers.
• The achieved score was then compared with the planned score to
identify the gaps.

Data type: Secondary

POPULATION:

DEPARTME No. of level- No. of level- No. of

NTS 4 managers 5 managers level-6
managers

Marketing 11 30 35

Finance 0 4 3

H.R 1 1 2

Logistics 1 0 0

Total no. of managers across three levels: 87

LIMITATION OF THE STUDY:

➢ The study focuses on three level of managers i.e level -4, level-5 and
level-6 across four departments viz; marketing,finance, H.R, and
logistics due to constraint of time.
➢ It focuses on mangers of Eastern Region only.
 TRAINING MODULE FOR LEVEL- 5 MANAGERS:
COMPETENCY: ORGANISATION AND BUSINESS FOCUS.

SUB-COMPETENCY: BUSINESS ENVIRONMENT.

MODULE NO: 101

TRAINING NEED:

PURPOSE: To enhance the understanding of business environment among Level-5

managers.

OBJECTIVES:
• Analyses & identifies patterns and trends for generating
plans/contingencies.

• Proactively interfaces with external environment/ industry as the

organizational representative.

• Understands & tracks competition. Tracks action as and when required.

DATE:

TIME:

VENUE:

BATCH SIZE: 30

FACULTY:

MODE OF TRAINING: Powerpoint presentations, games, exercises, quizzes,

case studies etc.

TRAINING REQUIREMENTS:

➢ INFRASTRUCTURE:
➢ FACILITIES/ MATERIALS: Projectors, audio-aids, paper,pen.

EVALUATION:

MODE: Monitoring performance.

 PERIOD: 6months

EVALUATOR:

POST TRAINING PLANS:

➢ RETRAINING.
➢ COUNSELLING.
➢ REINFORCEMENT.