A Study on Impact of Training Facilities and Training Effectiveness with reference to Amara Raja...

Asian Journal

of Research in

Business Economics

and

Management Asian Journal of Research in Business Economics and Management Vol. 5, No. 2, February 2015, pp. 322-336.

ISSN 2249-7307

322

www.aijsh.org

Asian Research Consortium

A Study on Impact of Training Facilities and Training Effectiveness with reference to Amara Raja Batteries

Limited Tirupathi

Ms. Syamala Devi Bhoganadam*; Dr. Dasaraju Srinivasa Rao**

*Research Scholar,

Department of Management,

K L University,

Vaddeshwaram, Guntur, A.P., India.

**Associate Professor,

Department of Management, K L University,

Vaddeshwaram, Guntur, A.P., India. DOI NUMBER-10.5958/2249-7307.2015.00051.1

Abstract

From the past 10 years business organizations are advancing their training initiatives due to the multinational company’s competition in India. By this Indian organizations have noticed the importance of training and they are more concentrating on the training activities to enhance their employee’s skill and knowledge. HR practises only can shape the employees in achieving the both personal and organizational goals. The aim of the study is to find the relationship between the training facilities and training effectiveness. The findings of the study reveal that there is a high level of significance between training facilities and training effectiveness. The results obtained from chi-square test between training facilities and training effectiveness. The study was conducted at Amara Raja Batteries Limited with the duration of 45days. The data was completed from employees based on the availability. Questionnaires were given to 60 employees and 55 were returned. The study also reveals the training frequencies, training methods followed at Amara Raja Batteries Limited. The study also focuses on the importance of training effectiveness and training facilities through literature review.

Keywords: Training effectiveness, training facilities, employees involvement, training methods, training frequencies. ________________________________________________________________________________

Bhoganadam & Rao (2015). Asian Journal of Research in Business Economics and Management,

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1. Introduction

In this era of global competition organizations has to concentrate more on the best use of the human resource capital. Organizations and individuals ought to develop and progress simultaneously for their growth and survival. Every modern management has to develop the organizational resources through human resource development department only. The 21st century will fit in to those organizations which are competent to learn faster than their competitors. Training is a special function of human resource development department (Ladiwal, 2011) where employee skill/knowledge gets enhanced through learning experience. Training is important because of the fast developing technology Lynton and Pareek says the difference between the old concept and new concept of training (T.V.RAO, 2006). Training is one way to improve the organization effectiveness and efficiency. It also acts as a bridge between the job requirements and employee specifications. According to Flippo Training is the act of increasing the knowledge and/or skill of an employee for performing a particular job (A.Noe, 2008). Similarly Beach (1980) viewed that Training is a prearranged procedure by which people learn knowledge and/or skills for doing a definite purpose. Training is a short term approach to improve the knowledge and skill of employees for attaining specific goals. After an employee is selected, placed and introduced he or she should provide with training.

Boydell identifies three levels of training needs within organization as organizational, occupational and individual level (Wilson, 2005). Difference between training effect and education effect is training is more specific predictable uniform while as education is less predictable variable (Caple, 2009). Singh (1995) defined training as the process of changing attitudes, improving knowledge and developing skills on the persons/employees of an organization so as to enable them to perform their jobs effectively. Depending on the functional level and occupational categories of employees training programs can be divided (Bhattacharyya, 2005) there are many departmental levels training programs conducted by the organizations. The training facilities provided by the organizations have a great impact on the training effectiveness. In the words of Douglas McGregor the average human being learns under proper conditions was acceptable compared to other factors impact on training effectiveness (HT Careers, 2003). Determining training effectiveness is a complex process but there are many benefits from providing training to the employees by Santos (2003). A training program can be effective when all the activities in the program were run successfully. Training activity may be observed as different for different organizations. But for the modern organizations training can be observed as a strategy for Training as a Leadership, Competitive advantage, competency mapping, Team Building and etc (Dayal, 2001). Hence in this paper relationship between training facilities and the training effectiveness was studied.

2. Review of Literature

From the literature it was seen that training program was affected by many factors like motivation, trainee, trainer, environment, training facilities, training schedule, psychological factors and etc. A training program was implemented in three phases as pre training (trainer, schedule and policy), implementing the training program (training facilities, working material, trainer expertise, training implementation) and post training (training review, feedback, training effectiveness). In the Indian economy training facilities are more influencing factors in many of the industries. In the article


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(Dominic, 2010) says that local institutions are lacking in providing the training facilities whenever in house training was conducted. Brown and Read (1984) say that high performance was highly dependent on trained and developed workforce in the organizations as by the Japanese management practises.

An excessive research work was done to identify the impact of training facilities on the training effectiveness. This research was started with finding the factors affecting training there after training facilities impact on the training effectiveness (Tamilarasan, 2013). Bureau of Social Science Research (1968) says that training will be effectiveness if all these conditions are satisfied in implementing the training program they are as training plan, efficient trainer, motivated staff and adequate training facilities (P., 2014). In India, private sector companies invest substantially on training facilities to meet their national and international human resource needs but the issue in the public companies was different (Hamid, 2011). There is a difference between the e-training facilities and traditional training facilities as depending on the economic conditions, employees, employers, size of the organization and degree of the organization these training facilities differs a lot (Abdullah Ibrahim, 2011). Online training facilities for employees are prominent compared to the traditional training facilities. Hence training facilities were treated as an important factor in effecting the training effectiveness. Organization effectiveness depends on the employee performance where as employee performance depends on the effectiveness of the training program where as training program depends on the training facilities. Therefore organizations have to maintain training facilities at prominent level to achieve the training program efficiency and subsequently the others.

3. Objectives of the Study

To know the impact of training facilities on training effectiveness at Amara Raja Batteries Limited.

To study the involvement of the employees in Training & Development programs at Amara Raja Batteries Limited.

To study the methods of Training & Development followed by Amara Raja Batteries Limited.

To know the frequency of Training & Development programs in Amara Raja Batteries Limited.

4. Significance of the Study

A program of training becomes mandatory for the purpose of meeting the specific problems of a specific organizations arising out of the introduction of new lines of production, individual adjustments, promotions, career development, job and personnel changes etc. Training is the medium through which one can improve their performance in the changing times. Therefore, Training and Development was selected as the theme of the project. The study is based on training programs conducted by Amara Raja Batteries Limited. The study will generate the relationship between the training facilities and training effectiveness of Amara Raja Batteries Limited employees.


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5. Research Methodology

The research was done to find out whether the company is providing the training & development programs to employees. Is there any impact of training facilities provided by the organization on the training effectiveness? There are many more factors having impact on the training effectiveness but here training facilities were considered because they seems to be mandatory for any type of training program. The study was conducted at Amara Raja Batteries Limited, Tirupathi. Primary data was collected using the questionnaire method for its simplicity and reliability. Structured questionnaire was adopted because the period of the project work was for only 45 days. Amara Raja Batteries Limited (Automotive Battery Division) constitute of 517 employees. Out of 517 employees 60 has been taken as sample size. Number of respondents are 55. Stratified Random Sampling Method was used for data collection from the employees’. The data was analyzed using statistical tools as chi square tests and percentages.

6. Limitations of the Study

The study was limited to time faction it is difficult to examine all the employees within 60 days. The study was done by taking sample size and hence the interpretations are based on approximations. Employees fear of management to reveal facts related to the organization there is a lot of scope for bias from the respondents.

7. Hypothesis

Null Hypothesis: [H0]

Effectiveness of training is not dependent on training facilities provided.

Alternative Hypothesis: [H1]

Effectiveness of training is dependent on training facilities provided.

8. Company Profile

Amara Raja Group was headed by Dr. Rama Chandra Naidu Galla in 1985. The Amara raja group of companies has around 7000 employees from various parts of the country. The group has Amara raja batteries limited, Amara raja electronics limited, Amara raja infra private limited, Amara raja power systems, Amara raja industrial service private limited, Galla foods, Mangal precision products limited. Recently it had launched another branch in Chittoor. It is best known for its product “Amaron” in the world. The study was undertaken at Amara raja batteries limited it had employees of 3464. ARBL manufactures both industrial and automotive batteries in separate division’s namely industrial battery division and automotive battery division. Each division has separate HR managers. The employees were divided into three segments as namely management, staff and workers. There are particular welfare programs, leave systems for all categories of employees. The study was confined to the automotive battery division. The products of automotive battery division were Amaron Flo, Amaron Pro, Amaron Go, Amaron Black, Amaron Fresh,


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Amaron Hi-way, Amaron Harvey, Amaron shield and Amaron Rider. The company has received many awards and rewards for their excellence. The exports of the company were all over the world.

9. Data Analysis

Table 9.1: Your Organization considers Training as a Part of Organizational

Strategy?

Opinion No of Respondents Percentage

Strongly Agree 16 29 Disagree 5 9 Agree 33 60 Strongly Disagree 1 2 Total 55 100

Interpretation

From the above table and graph 60% of employees agree with the statement, 29% of employees strongly agree with the statement, 9% of employees disagree with the statement and 2% of employees strongly disagree with the statement.

Table 9.2: Are you encouraged to take initiative in determining your own

Career and Development after attending Training Programs?


Yes 48 87 No 7 13 Total 55 100

Interpretation

From the above table and graph it is clear that 87% of employees agree that ARBL is encouraging employees in their career development and 13% of employees disagree that ARBL is encouraging employees in their career development.


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Table 9.3: How do you rate Training Facilities?


Excellent 8 14 Average 7 13 Good 34 62 Poor 6 11 Total 55 100

Interpretation

From the above table and graph 62% of employees rate that training facilities in ARBL is good, 14% of employees rate that excellent, 13% of employees rate that average and 11% of employees rate that poor.

Table 9.4: Is there any Reduction of Stress after you attend the Training and

Development Program?


Highly Agree 10 18 Disagree 9 16 Agree 34 62 Highly Disagree 2 4 Total 55 100


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Interpretation

From the above table and graph 62% of employees agree that training is useful for stress reduction, 18% of employees highly agree that training is useful for stress reduction, 16% of employees disagree and 4% of employees highly disagree that training program reduces stress.

Table 9.5: Rate the Knowledge and Facilitation of Internal Trainers?


Highly Satisfied 8 14 Dissatisfied 1 2 Satisfied 46 84 Highly Dissatisfied 0 0 Total 55 100

Interpretation

From the above table and graph 84% of employees satisfied with the internal trainers, 14% of employees are highly satisfied and only 2% of employees dissatisfied with the internal trainers.

Table 9.6: Rate the Knowledge and Facilitation of External Trainers?




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Interpretation

From the above table and graph 82% of employees are satisfied with the external trainers and 18% of employees are highly satisfied with the external trainers.

Table 9.7: Are you satisfied with induction provided for new joiners?



Interpretation

From the above table and graph 60% of employees are satisfied with induction program, 25% of employees are highly satisfied with that induction program, 13% of employees are dissatisfied and 2% of employees are highly dissatisfied with the induction program.


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Table 9.8: Do you think that your performance has improved after the

training program?


Often 21 38 Sometimes 33 60 Rarely 1 2 Never 0 0 Total 55 100

Interpretation

From the above table and graph 60% of employees said that sometimes, 38% of employees said that performance has often improved and 2% of employees said that performance has rarely improved.

Table 9.9: Frequency in attending Training Programs?


Once in a month 19 35 Three times in a month 1 2 Twice in a month 21 38 More times 10 18 Two times in a year 4 7 Total 55 100


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Interpretation

From the above table and graph 38% of employees said that frequency in attending training program is twice in a month, 35% of employees said that once in a month, 18% of employees said that more times, 7% of employees said that twice in a year and 2% of employees said that three times in a month.

Table 9.10: What are the problems you face during Training Programs?


Ambiguity 13 24 Poor facilitation 12 22 Power distance 12 22 Others 11 20 No problems 7 12 Total 55 100

Interpretation

From the above table and graph 24% of employees have training problems related to ambiguity, 22% of employees said that poor facilitation, 22% of employees said that power distance, 20% of employees said that other problems and 12% of employees said that they have no problems.

Table 9.11: How do you feel about the Effectiveness of Training and its

Utilization?


Excellent 5 9 Average 7 13 Good 35 64 Poor 8 14 Total 55 100


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Interpretation

From the above table and graph it is clear that 64% of employees said that utilization of training programs in ARBL is good, 9% of employees agree that utilization of training programs is excellent and 13% of employees agree that utilization of training programs is average.

Table 9.12: The perception of Employee regarding Training


Self Development 7 13 Organization Development 10 18 Both 34 62 Waste of time 4 7 Total 55 100

Interpretation

From the above table and graph 62% of employees respond that training in their perception is for both (self development & organization development), 18% of employees said that as organization


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development, 13% of employees said that as self development and 7% of employees said that its waste of time.

10. Test for Hypothesis - Chi Square Test

H0=Effectiveness of training is not dependent on training facilities provided.

H1=Effectiveness of training is dependent on training facilities provided.

Table 10.1

Effectiveness/Facilities Excellent Average Good Poor Total

Excellent 1 1 2 1 5 Average 2 2 2 1 7 Good 2 3 28 2 35 Poor 3 1 2 2 8 Total 8 7 34 6 55

Calculation

The formula for calculating the 2 value is

2 = ((O-E) 2/E)

Where, O is the observed value. E is the expected value.

Table 10.2 Chi Square

Oij Eij Oij-Eij (Oij-Eij)²/Eij

1 0.4 (8*5/100) 0.6 0.9 2 0.56 (8*7/100) 1.44 3.70 2 2.8 (8*35/100) -0.8 0.23 3 0.64(8*8/100) 2.36 8.70 1 0.35(7*5/100) 0.65 1.21 2 0.49 (7*7/100) 1.51 4.65 3 2.45 (7*35/100) 0.55 0.12 1 0.56 (7*8/100) 0.44 0.34 2 1.70 (34*5/100) 0.30 0.05 2 2.38 (34*7/100) -0.38 0.06 28 11.9 (34*35/100) 16.1 21.78 2 2.72 (34*8/100) -0.72 0.19 1 0.30 (6*5/100) 0.70 1.63 1 0.42 (6*7/100) 0.58 0.80 2 2.10 (6*35/100) -0.10 0.005 2 0.48 (6*8/100) 1.52 4.81

Total = 49.175


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Degrees of Freedom: Degree of freedom in distribution is number of observation or values that are independent of each other and cannot be detected from each other.

At 5% level of significance

Tabular Value = 16.919

Degrees of Freedom=(r-1) (c-1)

= (4-1) (4-1)

= 9

Result: since, calculated value is greater than the tabular value we reject H0 and accept H1 i.e. there is a strong relationship between training effectiveness and training facilities. It shows the increase in training facilities will definitely have an increase in the training effectiveness conducted in ARBL.

11. Findings of the Study

60% of employees agree with the training as a part of organizational strategy. 87% of employees agree that ARBL is encouraging employees in their career development. 85% of employees rate that training facilities in ARBL is good. 62% of employees agree that training is useful for stress reduction. 84% of employees satisfied with the internal trainers. 82% of employees are satisfied with the external trainers. 60% of employees are satisfied with induction program, 25% of employees are highly satisfied with that induction program. 60% of employees said that sometimes performance has improved after training program, 38% of employees said that performance has often improved after training program. 38% of employees said that frequency in attending training program is twice in a month, 35% of employees said that frequency in attending training program is once in a month. 24% of employees have training problems related to ambiguity, 22% of employees said that poor facilitation, 22% of employees said that power distance, 20% of employees said that other problems and 12% of employees said that they have no problems. 80% of employees said that effectiveness of training program and its utilization is good. 62% of employees respond that training in their perception is for both (self development & organization development).

12. Conclusion

Most of the organizations are considering training and development as a part of their human resource development system. Here training and development in this study reveals that the overall performance of the program was good and satisfied by the employees if done minor changes in the program then it becomes excellent. Those changes are increase in the training facilities, training programs related to reduction of stress levels, career development programs. The organization has a strong linkage with the Training & Development programs and these programs are helpful in their self development and the organization development.


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13. Scope for Future Research

This study concentrates on the training and development concept but there are many human resources concepts where we can exploit the data and do further research. Here in this paper only relationship between two factors that influence on training and development were considered we can identify further and do the research. We can also study the impact of effectiveness of training and development program on the organization effectiveness.

14. References

A.Noe, R. (2008). Employee Training and Development. Newyork: The McGraw Hill companies.

Abdullah Ibrahim, N. B. (2011). Comparing Effectiveness E-learning training and Traditional Training in Industrial Safety and Health. Annual Conference on Innovations in Business & Management (pp. 1-21). London,UK: The Center for Innovations in Business and Management Practice.

Bhattacharyya, D. K. (2005). Human Resource Planning. New Delhi: Excel Books.

Caple, R. B. (2009). The Theory and Practise of Training. Haryana: Repilka Press Pvt Ltd.

Dayal, I. (2001). Measuring Training Effectiveness. Indian Journal of Industrial Relations, 339-344.

Dominic, T. K. (2010). Effectiveness of the training and development function: a Tanzanian case study. International Academy of Business and Economics .

Edwin, F. B. (1971). Principles of Management. New Delhi: The McGraw Hill Company.

Hamid, S. (2011). A study of Effectiveness of Training and Development Programmes by UPSTDC, India-An Analysis. South Asian Journal of Tourism and Heritage, 72-82.

(2003). HT Careers. Hindusthan Times.

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Kant, D. B. (2013). A Review of factors affecting Training Effectiveness Vis-A-Vis Managerial Implications and Future Research Directions. International Journal of Advanced Research in Management and Social Sciences , 151-164.

Ladiwal, D. H. (2011). Training Practices in Indian Organizations: An Overview. Human Resource Mnagement Review , 31-36.

P., S. (2014). A Literature Review and Reports on Training and Development. the International Journal of Management , 23-30.


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Rama, M. J. (2012). Measuring Training Effectiveness: A Study in a Leading Retailing Industry in A Metropolitan City. International Journal of Multidisiplinary Management Studies, 16-25.

Read.A.R, B. &. (1984). Personnel and Training Policies – Some Lessons for Western Companies. Long Range Planning , 48-57.

S, B. D. (1980). Personal - The Management of people at work . Newyork: MacMillan Publishing Company.

T.V.RAO. (2006). Readings in Human Resource Development. New Delhi: Oxford & IBH publishing CO.Pvt.Ltd.

Tamilarasan, P. B. (2013). A Study on Training Effectiveness with Reference to Streta IT Solutions. International Journal of Research in Organizational Behavior and Human Resource Management , 24-30.

Wilson, J. P. (2005). Human Resource Development Learning and Training for Individuals & Organizations. Glasgow: Typeset by Saxon Graphics Ltd.

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