Tulasi Question

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TRAINING & DEVELOPMENT
INTRODUCTION
Human Resource Management (HRM) is a management function that helps

manager’s recruit, select, training and develops members for an organization.
Obviously, HRM is concerned with the people s dimension in organization. Human
Resource Management is a broad concept. Personnel management and Human
Resource (Management) development are a part of HRM. Human Resource
Management is concerned with the people dimension in management since every
organization is made up of people acquiring this services, developing their skills,
motivating them to high levels of performance and ensuring that they continue to
maintain their commitment to the organization, are essential to achieving organization
objectives. This is true regardless of the type or organization government, business
education, health, generation or social action. Getting and keeping good people in
critical to the success of every organization whether profit or nonprofit, public or
private.
Those organizations that are able to achieve their goals and efficient and
spending .the efficient spending the least amount of resources necessarily, that is in
efficient or inefficient risk the hazards of stagnating of business. Survival of the
organization requires competent managers and workers coordination their efforts
towards an ultimate goal. While succeful coordination can’t guarantee success
organization there unsucceful in getting such coordinate from managers and workers
will ultimately full.
1MADDI LAKSHMAIAH&CO.LTD
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HRM is process consisting of four functions:

1) Acquisition
2.) Development
3) Motivation and
4) Maintenance of Human Resource
The most valuable asset of an organization is m”- man power (or) “Human
resources it may be thought as the total knowledge, skills, creative abilities, talents and
aptitudes of an organizations work force as well as the values and attitudes and benefits
of an individual involved”.
“Human resource planning is integrated approach performing the planning
aspects of the personal function in order to have a sufficient supply of adequately
developed and motivated people to perform the duties and tasks required to meet
organizational objectives and satisfy the individual needs and goals of the
organizational members.”
-----Leon. C. Megginsson.
Meaning and importance:
Corporate manpower planning refers to the application of planning process

order to assess the requirement of manpower and also for procuring, utilizing and
developing the human resources at the level of the enterprise in order to attain the
corporate objectives.
Human resource planning is double-edged weapon. It leads to maximum

utilization of human resources excessive labor turnover and high absenteeism, improves
productivity and aid in achieving of an organization.
resource planning is the responsibility of the both line and staff managers.
The line manager is responsible for estimating the manpower requirements. The staff
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manager provides the supplementary information in the form of the records and
estimates.
TRAINING:
Training is the process of increasing the knowledge and skills for doing a
particular job. It is an organized procedure by which people learn knowledge and skill
for definite purpose. The purpose of training is basically to bridge the gap between job
requirements and present competence of an employee training is aimed at improving
the behavior and performance of a person. It is a never ending and continuous process.
DEFINITION
According to “training is the act of increasing the knowledge and

skills of an employee for doing a particular job” _ Flippo.
NEED FOR TRAINING
The need for training arises due to the following reasons:-

 To match the employee specifications with the job requirements and
organizational needs.
 To achieve the goal of organizational viability and the transformational process.
 To meet the challenges of latest technology i.e., mechanization, computation and
automation.
 To meet the organizational complexities such as manufacturing of multiple
products and bi- products are dealing in services of diversified lines, extension of
operation to various regions of the country or in overseas countries.
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 To increases productivity, improve quality of product / service, Help Company

to fulfill its future personnel needs, improve organizational climate, improve
health and safety, present obsolescence.
OBJECTIVES OF TRAINING:
To establish a sound relationship between the worker and job.
To upgrade skills and prevent obsolescence.
To develop wealth, constructive attributes in employees and obtain better operation and
greater loyalty.
To prepare employees for future assignments.
To increase productivity
To enhance employee confidence and morale, sense of responsibility
To minimize operational errors.
IMPORTANCE OF TRAINING
Training is the corner stone of the sound management, for it makes

employees more effective and productive. It is actually intimately connected with all the
personal and managerial activities. It is an integral heart of the whole management
programme, whit all its many activities functionally inter related.
The importance of training has been expressed in these words:

“Training is a widely accepted problem solving device”. Indeed, our national
superiority in manpower productivity can be attributed in no small measures to the
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success of our educational and industrial training progammes the success or has been
archived by a tendency in many quarters to regard to training person. It’s almost
traditional in America to believe that if something is good, more of the teaching is even
better. Hence, we can take more vitamin pills to solve personals health problem and
more training to solve our manpower problem. Over and under emphasis on training
system largely from inadequate recognition and determination of training needs and
objectives. Stem also from back recognition of the professional techniques of modern
industrial training.
ADVANTAGES OF TRAINING
 Improves the morale of the workforce.

 Helps people identify with organization goals.
 Helps create a better corporate image.
 Improves the relationship between boss and subordinate..
 Provides information for future needs in all areas of the organization.
 Creates an appropriate climate for growth, communication.
 Helps the individual in making better decision and defective problem solving.
 Provides information for improving knowledge on leadership, communication
kills and attitudes.
DEVELOPMENT
Management development programs are future oriented and more concerned

education that is employee training or assisting a person to become a better performer.
It is a long-term educational process utilizing a systematic and organized

procedure by which managerial personnel learn conceptual and theoretical knowledge
for general purpose. Development is related with less skill oriented but stresses on
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knowledge about business environment, principles and techniques, human relations of

specific industry analysis .It also covers not only those, which improve job performance,
but also those which bring about growth of the personality. It helps individual
actualization of their potential capacities so that they become not only good employees
but also better men and women. In organizational terms, it is intended to equip persons
to earn promotion and greater responsibility.
TRAINING AND DEVELOPMENT
Every organization needs to have well-trained and experienced people to

perform the activities that have to be done. If current or potential job occupants can
meet this requirement training is not important when this is not the case, it is not
necessary to raise the skill levels and increase the versatility and adaptability of
employees.
As jobs have become more complex the importance of employee training has
increased when jobs were simple, easy to learn and influenced to only a small degree by
technological changes, there was little need for employees to upgrade or alter their
skills. But the rapid changes taking place during the last quarter-century in our highly
sophisticated and complex society have created increased pressure for organizations to
readapt the products and services produced. The manner in which products and
services are produced and offered, the types of jobs required and the types of skills
necessary to complete these jobs.
Training moulds the employees’ attitudes and helps them to achieve the
better co-operation with the company and greater loyalty to it. The management is
benefited in the sense that highest standards of quality are achieved further trained
employees make better and economical use of materials and the equipment, there fore
wastage for constant supervision is reduced. Successful candidates placed on the jobs
need training to perform their duties effectively. Workers must be trained to the
minimum and avoid accidents. It is not only the workers who need training but
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supervisors, and executives also need to be developed in order to enable them to grow
and acquire maturity of thought and actions. Training and development constitute and
ongoing process in any organization.
DISTINCTION BETWEEN TRAINING AND DEVELOPMENT
Training is a short-term process utilizing a systematic and organized

procedure by which non-managerial personnel learn technical knowledge and skill for
definite purpose.
Development is a long-term process utilizing a systematic and organized
procedure by which managerial personnel learn conceptual and theoretical knowledge
for general purpose.
IMPORTANCE OF TRAINING AND DEVELOPMENT
Training is the corner stone of sound management for which 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
program, with all its many activities functionally interrelated.
Training and development program helps to remove performance
deficiencies in employees. This is particularly true when
 The deficiency is caused by lack of ability rather than lack of motivation to
perform.
 The individuals involved have the aptitude and notation needed to learn to do the
job better.
 Supervisors and peers are supportive of the desired behaviors
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There is greater stability, flexibility, and capacity for growth in

organization training contributes to employee stability in at least two ways.
Employees become efficient after under going training. Efficient employees
contribute to the growth of the organization. Growth renders stability to the
work force. Further, trained employees need to stay with the organization.
NEED FOR TRAINING AND DEVELOPMENT
We propose that management can determine the need for training by

answering four questions.
1. What are the organization goals?

2. What tasks must be completed to achieve these goals?
3. What behaviors are necessary for each incumbent to complete his or her
assigned tasks?
4. What deficiencies, if any do incumbents have in the skills, knowledge or
attitude required performing the necessary behaviors?
These questions demonstrate the close link between human resource

planning and determination of training needs based on our determination of the
organizations needs, the type of work out training program should follow up
naturally. Once we can answer question 4 we have a grasp of the extent and
nature of our training needs.
What kind of signals can warn a manager that employee training may be
necessary? Clearly the more obvious ones relate directly to productivity.
Inadequate job performance or a drop in productivity. The former is likely to
occur in the early months on a new job. When individuals are making a
satisfactory effort attention should be given towards raising the skill level of the
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worker. When a manager is confronted with a drop in productivity, it may

suggest that skills need to be “fine – tuned”.
In addition to productivity measures a high reject rate or larger than usual

scrap page may indicate a need for employee training. A rise in the member of
accidents reported also suggests some type of retraining is necessary. There are
also the future element changes that are being impressed on the workers as a
result of a job redesign or a technological break through. These types of job
changes require a training effort
That is fewer crises oriented that is a preparation for planned change rather than
a reaction to immediately unsatisfactory conditions.
Training will be judged by its contribution to performance where

performance is a function of skills, motivation and the opportunity to perform.
Managers must compare the value received from the increase in performance
that can be attributed to training with the costs incurred in that training. The
desire for improved worker productivity cannot be approached in a vacuum. The
benefits that occur from training must exceed the costs incurred, when
inadequate performance results from a motivation problem rather than skill
problem.
Once it had been determined that training is necessary, training goals

must be established. Management should explicitly state what changes or results
are sought for each employee. It is not adequate merely to say that change in
employee knowledge, skills, attitudes or how much we would argue that these
goals should be tangible, verifiable and measurable. They should be clear to both
management and the employee.
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PROCESS OF TRAINING
TRAINING
NEEDS
ANALYSIS
TRAINING TRAININ
EVALUTION G
TRAINING
TRAINING
IMPLEMEN
T
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TRAINING NEED ANALYSIS (TNA)/TRAINING NEED

IDENTIFICATION (TNI)
An analysis of training needs an essential requirement to the design of effective

training. Purpose of training need analysis is to determine whether there is a gap
between what is required for effective performance and present level of
performance.
Training Need arises at three levels

• Organization level
• Individual level
• Operational level
Corporate need and training need are interdependent because the organization
performance ultimately depends on the performance of its individual employee
and its subgroup.
Organizational level Training need analysis at organizational level focuses in
strategic planning, business need, procedures, structures, policies, strengthen, and
weaknesses and external environment such as opportunities and threats. After
doing theSWOT 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.
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INDIVIDUAL LEVEL:- Training needs 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 the 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 or:
• Appraisal and performance review
• Peer appraisal
• Competency assessments
• Subordinate appraisal
• Client feedback
• Customer feedback
• Self-assessment or Self-appraisal
OPERATIONAL LEVEL:
Training need analysis at operational level focuses on the work
that is being assigned to the employees. The 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. Employee need to prepare for these
changes. The job analyst also gathers information on the tasks needs
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to be done plus the tasks that will be required in the future. based on
the information collected; training need analysis (TNA) is done.
BENEFITS OF NEED ASSESSMENT
Training programs are designed to achieve specific goals that meet

felt need. There are many benefits of need assessment.
Trainers may be informed about the broader need of the trainees.

Trainers re able to pitch their course inputs closer to the specific
needs of the trainees.
Assessment makes training department more ccountable and more
clearly linked to other human resource activities, which make the
training programs easier to sell to line managers.
TRAINING DESIGN
The design of the training program can be undertaken only when a
clear training objectives has been produced. The training objectives
clear what goal has to be achieved by the end of training program i.e.
what the trainees are expected to b able to do at the end of their
training. Training objectives assist trainees to design the training
program.
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The trainer – Before starting a training program, a trainer analyses

his technical, interpersonal, judgment skills in order to deliver quality
content to trainers.
The trainees – A good training design requires close secretions the

trainees and their profiles. Age, experience, needs and expectations of
the trainees are some of the important factors that affect training
design.
Cost of training
– It is one of the most important considerations in designing a

training programme. A training programme involves cost of
different types. These may be in the form of direct expenses
incurred in training, cost of training material to be provided,
arrangement of physical facilities and refreshment, etc.besides
these expenses the organization has to bear indirect cost in the
form of loss of production during training period. Ideally, a
training programme must be able to generate more revenues
than the cost involved.
Training climate
– A good training climate comprises of ambience, tone, feelings, positive
perception for training program etc. therefore, when the climate is
favorable nothing goes wrong but the unfavorable, almost every thing goes
wrong.
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Organizational
resources
practices
priorites.etc
Trainer Training climates Trainees
Trainee’s learning
Trainer’s skills
style
Training Training Training Support Program

objectives strategies tactics facilities design
Terminal Training On\off the

objectives topics job
Enablingobjective
Break up program contents
s
Lesson objectives Categorize contents into information,

knowledge, skills, and attitudes
Sequence the contents
Determine learning outcomes for

each topic
Constraints
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TRAINING –DESIGN
Trainees’ learning style – the learning style, age, experience,

educational of trainees must be kept in mind in order to get the right
pitch it the design of the program.
Training strategies – Once the training objective has been

identified, the trainer translates it into specific training area and
modules. The trainer prepares the priority list of about what must be
included, what could be included.
Training topics – After formulating a strategy, trainer decides upon

the content to be delivered. Trainers break the content into headings,
topics, ad modules. These topics and modules are then classified into
information, knowledge, skills, and attitudes.
Sequence the contents- contents are then sequenced in a following

manner:
 From simple to complex
 Topics are arranged in terms of their relative importance
 From known to unknown
 From specific to general
 Dependent relationship
 Training tactics- Once the objectives and the strategy of the
training program becomes clear, trainer comes in the position
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to select most appropriate tactics or methods or techniques. The

method selection depends on the following factors:
 Trainees background
 Time allocated
 Style preference of trainer
 Level of competence of trainer
 Availability of facilities and resources, etc
SUPPORT FACILITIES – IT can be segregated into printed

and audio visual. The various requirements in a training program
are white boards, flip charts, markers, etc.
CONSTRAINTS – The various constraints that lay in the

trainers mind are:
o Time
o Accommodation, facilities and their availability
o Furnishing and equipments
o Budget
o Design of the training, etc
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TRAINING IMPLEMENTATION
To put training program into effect according to definite plan or procedure is

called training implementation. Training implementation is the hardest part of
the system because one wrong step can lead to the failure of whole training
program. Even the best training program will fail due to one wrong action.
Training implementation can be segregated into:
 Practical administrative arrangements
 Carrying out o the training
In general programme implementation involves action to the

following lines:
• Deciding the location and organizing training and other facilities.
• Scheduling the training program.
• Conducting the programme
• Monitoring the progress of the trainees
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TRAINING EVALTION
The process of examining a training program is called training evolution.

Training evolution checks whether training had has the desired effect. training
evolution ensures that whether candidates are able to implement their learning In
their respective workplaces, or to the regular work routines.
PURPOSE OF TRAINING EVALUTION
The five main purpose of training evolution are:
Feedback: it helps in giving feedback t the candidates by defining the objectives

and linking it to learning outcomes.
Research: it helps in ascertaining the relationship between acquired knowledge,

transfer of knowledge at the workplace, and training
Control: it helps in controlling the training program because if the training is not
effective, then it can be dealt with accordingly
Power games: at times, the top management (higher authoritative employee)

uses the evaluative data to manipulate it for their own benefits.
Intervention: it helps in determining that whether the actual outcomes are aligned
with the expected outcomes.
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AREA OF TRAINING KNOWLEDGE

The aim is to the new employees learn rules and regulations about the job
and fully aware of what goes inside and outside of the company.
TECHNICAL SKILLS
The employee is taught specific skills like operating the machine,
operating computer etc.sothat he can acquire that skill and contribute
meaningfully.
SOCIAL SKIILS
If focus on teaching the employee how to be a team member and get a head.
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TECHNIQUES
This involves application of knowledge and skills.
Types of training
Remedial
Orientation Training
Training
Refresher
Training
Job Training
Promotional
Training
Safety Training
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OBJECTIVES OF TRAINING AND DEVELOPMENT
 To do the project on training & development following things you

should take into consideration.
 Process followed by the company for the identification of training

needs
 Training process\schedule.
 Measures followed to identify the effectiveness of the training.
 Measurement for the impact for the training
.
MISSION OF THE EMPLOYEE DEVELOPMENT

CENTER
 Improve individual and organizational and organizational

performance.
 Reduced employee turnover.
 Enhance workplace harmony and communication.
 Enhance over all well being of employees.
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OBJECTIVES OF THE EMPLOYEE DEVELOPMENT

CENTER
 Build and refine employee knowledge and skills for the effective
performance of duties and responsibilities.
 Provide leadership in initiating, developing, coordinating and
sponsoring employee training and development activities.
 Prepare employees for evolving basic technologies job duties
and responsibilities.
 Assist employees by providing a training and education forum
for self
• Improvement, personal wellness and work\family needs.

• Create as sense of community by offering comprehensive
orientation programs for employees.
• Assist employees in furthering their educational goals and
career development.
• Improve superiority and leadership skills to manage
employees for peak performance.
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• Provide adult basic education classes for employees to

improve basic writing and math skill and\or prepare for
their GED certificate.
• Provide consultation services and specialized training to
individual departments.
• Provide a training and development resource library for
employee use.
• Create and manage a training web site and data base for
training registration, tracking and transcript generation.
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METHOD OF TRAINING
Methods of training
On the job Off the job

training training
Job rotation Vestibule

training
Coaching Role play
Job instruction Lecture methods
Committee Conferences
Apprenticeship Programmed
training instruction
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CLASSIFICATION OF TRAINING METHODS:
The training programs commonly used to train operatives

and supervisory personnel are classified into two types
 On the job
 Off the job
ON –THE-JOB TRAINING:
The most widely used methods of training take place on-the-

job. This can be attributed to the simplicity to such methods and the
impression that they are less costly to operate on-the-job training
places the employees in are actual work situation and makes then
appear to be immediately productive. It is learning by doing .For jobs
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that are difficult to simulate or be learned quickly by watching and

doing, on the-job training makes sense.
Special assignments or committees are other methods used

to provide tower-level with first experience in working on used to
provide lower executive from actual problem functional areas serve
on “boards” and are required to analyze problems and recommended
solutions to top management.
Apprenticeship programs:
Apprenticeship programs put the trainee under the
guidance of a master worker. The argument for apprenticeship
programs is that the required job knowledge and skills are so complex
as to rule out anything less than a long time period where the trainee
understudies a skilled master journeyman.
COACHING AND MONTORING:
Coaching is one-to-one relationship between trainee and supervisors

which offer workers continues guidance and feedback on who well
they are handling their tasks.
Mentoring is particular form of coaching used by experienced
executives to groom junior employees. Normally, mentoring involves
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one-to-one coaching for a period of several years until the individual

is eventually capable of replacing the mentor.
Job instruction training:
Job instruction training consists of four basic steps.

 Prepare the trainees by telling them about the job and overcoming
their uncertainties.
 Presenting the instruction, giving essential information in a clear
manner.
 Having the trainees try out the job to demonstrate their
understanding.
 Placing the workers into the job, on their own, with a designated
resource person to call upon should they need assistance.
JOB ROTATION
This kind of training involves the moment of trainee from

one job to another. This helps him to have a general understanding of
how th organization functions. Apart from realizing boredom, job
rotation allows workers to built rapport with a wide range of individuals
with in the organization, facilitating future co-operation among
departments. The cross trained personal offer a great amount of
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flexibility for organizations when transfers, promotions or replacements

become inevitable.
Job rotation may pose several problems, especially while

the trainees are rolled on various jobs at frequent intervals. In such a
case trainees do not usually spend long enough in any single phase of the
operation to develop a strong degree of expertise. For slow learners, it
does not give enough room to integrate resource properly. Trainees can
become confused when they are exposed to rotating managers, with
contrasting styles of operation. Today’s manager’s commands may be
replaced by another manager.
COMMITTEE ASSIGNMENTS
In this method. Trainees are asked, to solve an actual

organization problem. The trainees have to work together and offer
solution to the problem. This method of training helps them develop
team spirit and work united common goals.
The above on the job methods are cost effective. Workers
actually produce whole they learn. Since immediate feedback is
valuable, they motivate trainees to observe and learn the right way of
doing things. Very few problems arise in the case of training because the
employee learns in the actual work environment where the skills that
are learnt actually used. Experienced workers cannot use the facilities
that are use in training. Poor learners may damage machinery and
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equipment. Finally, if the trainer does not possess teaching skills, there
is very little benefit to the trainee.
OFF-THE-JOB TRAINING:
Off-the-job training simply means that training is not a part

of everybody job activity. Under this method of training, trainee is
separated from the job situation ands his attention is focused upon
learning the material related requirements; he can place his entire
concentration of learning job rather than spending his time in
performing it. There is an opportunity for freedom of expression for
the trainees.
Off-the-job training covers a number of techniques classroom

lecturers, films, demonstrations, case studies and other simulation
exercises and programmed instructions. The facilities needed for each
of these techniques vary from a small makeshift classroom to an
elaborated development center with large lecture halls, supplement by
small conference rooms with sophisticated audiovisual equipment,
two-way mirrors and all the frills.
Classroom lectures or conferences:

The lecture or conference approach is well adapted to
conveying specific information rules, procedures or methods. The use
of audiovisuals or demonstrations can often make a formal classroom
presentation more interesting while increasing retention and offering
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a vehicle for clarifying more difficult points. The lecture’s liabilities

include possible lack of feedback and the lake of active involvement
by the trainees. However this can be partially offset by reducing the
structured lecture format and allowing trainee to provide feedback to
the lecturer or creating discussion groups under the direction of a
conference leader.
Vestibule training:
In vestibule training, employees learn their jobs on the

equipment they will be using, but the training is conducted away
from the actual work floor. Vestibule training allows employees to
get a full fill for doing tasks without “real-world “pressures.
Additionally it minimizes the problem of transferring learning to
the job, since vestibule training uses the same equipment the trainee
will use on the job.
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Programmed instruction:
The programmed instruction technique can be in the form of programmed texts

or manuals, while in some organizations teaching materials are utilized.
All programmed instructions approaches have a common characteristic.
They condense the material to be learned into highly organized, logical
sequences, which require the trainee to respond. The ideal format
provides for nearly instantaneous feedback that informs the trainee if his
on her response is correct.
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TOBACCO IN INDIA
INTRODUCTION
The study reviews the status of the tobacco sector in India, both raw tobacco
and its manufactured products. An attempt has been made to identify major economic
and social factors affecting tobacco production and consumption, and to explore the
economic implications of government policy measures for tobacco control.
AREA, PRODUCTION AND YIELD
The area under tobacco, some 0.25 percent of the total cropped
area, has fluctuated irregularly over the past three decades. The area under
tobacco appears to be strongly influenced by prices in the preceding year. As
a result of increasing yields, production of tobacco rose from 362 000 tones in
1970/71 to 646 000 tones in 1997/98 (Table 3.1).
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TABLE 3.1 Area, production and yield of tobacco in India
Period Area (‘000 ha) Production Unit yield Proportion with

(‘000 tone) (kg/ha) irrigation (%)
1970/71 447 362 810 23.7
1975/76 368 350 950 29.8
1980/81 452 481 1 065 33.7
1985/86 397 441 1 111 39.9
1990/91 385 563 1 353 43.2
1994/95 381 567 1 486 45.3
1995/96 395 535 1 356 n.a.(1)
1996/97 432 599 1 386 N.A.
1997/98 464 646 1 393 N.A.
Notes:
N.A=Notavailable.
Source: Directorate of Economics and
Statistics, Ministry of Agriculture.
Various issues. Area and Production of
Principal Crops in India.
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During the last three decades, production of Flue Cured Virginia (FCV)
tobacco increased at an annual rate of l.2 percent despite its area declining by 0.7
percent annually. Production of other varieties increased by over 2 percent, reflecting
mainly higher productivity as the area sown registered only a marginal increase. An
analysis of long-term performance indicates marked changes in trends between the
1980s and the 1990s. Total FCV production between 1981/82 and 1991/92 showed a
small annual rate of growth (0.9 percent). The decline in area offset part of the gains
from productivity. Of the increased output, almost 85 percent was due to increased
productivity and 15 percent to expansion of area. The increasing yield of VFC tobacco
during the 1990s reflected the boost from government policy, through the Tobacco
Board, for this variety. The improved technology and the cultural practices
recommended by the Central Tobacco Research Institute (CTRI) and other institutions
also helped to boost production.
The widespread adoption of improved varieties released by CTRI and other

research stations, combined with the adoption of improved cultural practices, have
improved unit yields. Substantial increases in the use of fertilizers and insecticides for
tobacco have also played an important role. Data on total quantities of these inputs used
on the tobacco crop are not available for the country as whole, but research indicates
that tobacco farmers in India use dosages of these inputs that are substantially higher
than those recommended by research stations (cf. NCAER, 1994). However, in Andhra
Pradesh, according to estimates (DES, 2000), fertilizer application per hectare on
tobacco increased almost 250 percent in the five years from 1990/9l to 1994/95, while the
use of insecticides doubled. Similarly, increased use of irrigation, which gives higher
yields compared with rainfed production, has also made an important contribution. All
of these inputs are supplied at subsidized prices. Finally, price increases also seem to
have stimulated higher output. Farm harvest prices for tobacco have increased three- to
ten-fold in the last three decades, depending on region. Moreover, the increase in
wholesale prices for tobacco has been higher than for cereals or other alternative crops,
such as cotton, pulses, chili or groundnut.
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A wide variety of tobaccos are grown in 16 states in India under diverse agro
climatic conditions. However, most of the varieties grown (other than Virginia, Burley
and Oriental) are of non-cigarette types. These include natu, bidi, chewing, hooka
(hookah), cigar and cheroot tobaccos and account for about 77 percent of the total
output (Table 3.2). Cultivation of FCV tobacco was initially confined to the traditional
black soil areas of Andhra Pradesh. However, to suit the quality requirements in
internal and export markets, cultivation of FCV was encouraged in light soils in
Karnataka and Andhra Pradesh. In the initial years, the varieties grown were limited to
Havana tobacco used in cigars, and Lanka tobacco used in the manufacture of snuff and
bidis. Subsequently, other forms, like FCV, were introduced.
TABLE 3.2 : Distribution (percentage) of production of different types of tobacco in

India.
Year Percentage distribution of production of Total

different tobacco types harvest
FCV Natu Bidi Cigar Hookah Cheroot Snuff (‘000
tonne)
1975/76 27.7 10.9 31.4 4.3 7.1 17.2 1.4 349.8
1980/81 26.1 10.6 36.5 2.8 7.7 14.8 1.5 520.1
1985/86 18.0 13.8 39.3 4.0 6.8 17.0 1.8 441.2
1986/87 23.7 9.5 40.0 2.4 6.1 16.9 1.4 461.8
1987/88 15.4 9.8 37.6 2.7 8.7 24.1 1.7 367.4
1988/89 21.2 12.2 33.9 2.9 9.4 18.8 2.1 492.8
1989/90 18.8 12.9 33.4 2.8 6.2 23.5 2.4 551.6
1990/91 20.3 10.5 35.5 2.6 14.1 14.9 2.1 558.4
1991/92 28.2 12.3 28.6 2.4 12.4 13.5 2.6 584.4
1992/93 27.8 10.4 31.6 2.8 13.3 11.9 2.2 596.5
1993/94 22.0 10.7 33.4 2.8 17.3 11.7 2.1 562.9
1994/95 20.0 7.9 38.6 3.1 3.9 24.4 2.1 566.7
1995/96 22.0 9.0 38.3 3.2 3.2 22.2 2.1 535.2
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1996/97 23.4 8.1 34.2 2.1 5.8 25.8 1.6 617.9

1997/98 23.6 8.1 29.5 1.5 6.6 29.1 1.5 646.0
Source: Directorate of Tobacco Development, Ministry of Agriculture, Chennai.
IMPACT OF GOVERNMENT POLICIES ON PRODUCTION OF TOBACCO
Even though tobacco comes under state jurisdiction, the Government of India
plays an important role in the growth and development of the tobacco industry. In fact,
at least six ministries of the Union Government - Agriculture, Commerce, Finance,
Industry, Labor, and Rural Development - deal with one or another specified aspects of
the industry. Following the increasing health concern about tobacco consumption, the
central Ministry of Agriculture has not launched any development scheme for the crop
since the completion of the Seventh Five-Year Plan (1985-90). However, in general,
government policy has been to promote production, improve quality and ensure
remunerative prices for growers.
Government interventions in support of the industry can broadly be classified into:
i. Institutional and regulatory support;

ii. Price and market ;
iii. Export promotion;
iv. Research and development (R&D) and
v. Direct fertilizer and credit subsidies
All these interventions involve explicit or implicit subsidies for the tobacco industry.
The introduction of the auction system by the Tobacco Board brought an

element of competition to the tobacco leaf market and freed the market from pricing
and grading anomalies. Farmers intending to grow Virginia tobacco are required to
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register with the Board every year. Production quotas are fixed. Nevertheless, the
Tobacco Board, which has responsibility for regulating production, marketing and
exports of FCV tobacco grown in the states of Andhra Pradesh, Karnataka and
Maharashtra, has not been completely successful in controlling the area under tobacco
(Table 3.3). In fact, controlling the area to be planted is an ineffective instrument for
controlling production since price incentives, climatic conditions and the expertise of
individual growers can greatly change the yield per hectare on individual farms from
season to season. The Board’s attempts to reduce fluctuations in auction prices have
met with mixed success. Moreover, cultivation and trade of non-FCV varieties,
constituting over 75 percent of tobacco production, is still outside the purview of the
Tobacco Board.
TABLE 3.3: Area registered and planted to FCV tobacco cultivars, and
production
Year Area (‘000 ha) Production (‘000 tonne) %

Recorded Planted Difference Expected Actual Difference change
[(3) - (2)] [(6) - (5)] in price
(1) (2) (3) (4) (5) (6) (7) (8)
1986/87 111.20 104.871 -6.33 110.20 132.73 3.07 21.37
1987/88 83.20 68.31 -14.89 83.20 59.34 -23.77 -34.18
1988/89 92.08 105.52 13.44 100.00 116.21 16.21 98.66
1989/90 88.58 105.32 16.74 93.00 100.82 7.82 1.59
1990/91 103.52 122.40 18.88 105.00 109.48 4.48 -11.45
1991/92 122.26 153.55 31.29 144.83 159.19 14.36 -13.37
1992/93 113.56 140.71 27.15 124.06 158.86 34.80 -18.37
1993/94 86.11 122.84 36.73 92.64 125.50 32.86 1.68
1994/95 81.69 106.39 24.70 86.27 96.34 10.07 10.00
1995/96 94.28 124.14 29.86 99.67 114.40 14.73 26.32
1996/97 100.54 152.72 52.18 112.76 168.21 55.45 24.38
1997/98 105.38 154.03 48.65 141.81 177.09 35.28 37.61
1998/99 118.23 183.47 65.24 139.26 204.49 65.23 n.a.
1999/20 120.73 178.93 58.20 132.28 190.00 57.72 n.a.
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Source: Tobacco Board (various issues). Annual Administrative Report.
The Directorate of Tobacco Development handles marketing of non-FCV

tobacco. The Central Ministry of Agriculture continues its efforts to streamline the
marketing of non-FCV tobacco in consultation with the State Departments of
Agriculture. They provide limited facilities, such as market yards, and their impact on
prices, etc., is restricted. In this sector, traders and manufacturers are more active and
they take advantage of weak bargaining positions, especially in cases where they
provide loans and or inputs on credit to farmers for raising the tobacco crop.
The Tobacco Board, established in 1976, provides marketing services for FCV
tobacco, through its compulsory auction system. Virginia tobacco at the primary level is
sold through auctions conducted by the Board. Exporters of tobacco, manufacturers of
cigarettes and dealers in tobacco wishing to participate in the auctions have to register
as a buyer for each auction floor, wherever they intend to operate. However, the auction
system has not been successful in reducing fluctuations in the levels of auction and
export prices. Table 3.4 compares price levels for selected representative grades at both
the production and export levels. These grades include F2 at the farm level and its
equivalent export grade, namely L2.TABLE 3.4:Structure of tobacco prices
(Rs/kg)
Year MSP MGP Auction Price MEP Actual unit export value
(F2 Grade) (L2 Grade)
1984/85 11.15 Nil 11.98 23.25 23.99
1985/86 11.15 Nil 13.01 23.25 24.92
1986/87 11.15 Nil 8.26 23.25 25.45
1987/88 11.25 Nil 19.9 24.55 25.35
1988/89 11.75 18.00 18.52 27.00 28.13
1989/90 12.50 15.10 34.49 27.00 31.47
1990/91 13.25 15.90 29.88 32.10 33.76
1991/92 14.75 21.50 29.88 48.50 58.45
1992/93 16.00 n.a. 24.39 n.a. 50.31
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1993/94 18.00 n.a. 24.80 * 58.57

1994/95 18.50 25.00 27.28 * 54.63
1995/96 19.00 28.00 34.46 * 68.56
1996/97 19.00 31.00 42.86 * 80.64
1997/98 20.50 36.00 58.98 * 62.45
1998/99 22.50 38.00 34.47 * 71.14
Notes: n.a. = not available. * = not applicable, as the Minimum Export Price was
abolished as of 1993/94.
Source: Tobacco Board (various issues). Annual Administrative Report.
CTRI is an apex research body for tobacco in India, and has been successful
through its multidisciplinary programmes in evolving a number of high yielding
cultivars of tobacco and in improving quality. In addition to the CTRI programmes, six
research stations - located in Andhra Pradesh, Gujarat, Karnataka, Orissa and Uttar
Pradesh - under the All India Coordinated Research Project on Tobacco have evolved
high yielding varieties for different types of tobacco for various states. They have also
developed improved crop management and crop rotation systems.
CROP SUBSTITUTION POSSIBILITIES

Economics of tobacco versus alternative crops
Tobacco in India, as in many other countries, yields higher net returns per unit
of land than most other cash crops, and substantially more than food crops. Currently,
there are a few specialized crops in various areas that provide similar incomes, but it is
estimated that these crops would not remain remunerative if total production increased.
The economics of alternative crops is generally based on experiments carried out on a
limited area at research stations under optimal conditions. More detailed research work
is needed on a wider scale at farmers’ field level before firm recommendations can be
made about them. In general, under farmers’ field conditions, most other alternative
crops, as discussed below, are currently not as remunerative as tobacco. Should tobacco
farmers need to diversify into other crops, they are likely to suffer economic hardship.
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These alternative crops also require high levels of irrigation. Tobacco is

preferred due to its drought resistance and suitability for growing under rainfed
conditions. Other problems associated with substitution by other crops include the
capital invested in specialized facilities created for tobacco processing, which cannot be
used for other crops; the difficulties of finding substitute crops for rainfed areas; and
the dependency of millions of people on bidi rolling and tendu leaf collection. Moreover,
with an assured market and prompt payment of sale proceeds through the Tobacco
Board, it will be difficult to replace FCV tobacco as a crop.
It is worthwhile comparing rates of return from tobacco with competing crops

such as groundnut or cotton. For this, Karnataka is taken as a representative state for
FCV tobacco. The data show that while tobacco typically yields high profits, it can also
show severe losses at times (Table 3.5). Of the three crops, groundnut consistently
showed reasonable profits over cost of cultivation. In contrast, cotton and tobacco
showed fluctuations in profits. Though data are not available for comparable years, it
may be assumed that the trend observed for several years for these crops will not have
changed much in recent years.
In the light of oversupply of FCV tobacco in recent years, some comparisons

have been carried out on profits from growing tobacco versus other crops in FCV-
growing areas. The comparison indicates that some other crops can be grown in that
soil, and that some of the crops can be more remunerative than tobacco. For instance,
the Central Research Institute found that combinations of hybrid maize and black gram
yielded promising levels of net returns per hectare in black cotton soils of Andhra
Pradesh, as did hybrid maize and soybean.
TABLE 3.5: Net return from different crops in Karnataka (Rs/quintal)
Crop year Groundnut Cotton Tobacco

1982/83 71.11 46.77 313.71
1983/84 121.61 103.13 146.94
1985/86 77.27 -57.71 n.a.
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1986/87 119.15 -17.72 -1 069.31

1987/88 n.a. n.a. -432.25
1991/92 145.50 n.a. 1 110.00
.Notes: n.a = not available; 1 quintal = 100kg.
Source: Directorate of Economics and Statistics. Cost of Cultivation of Principal Crops in

India. (Various issues).
Bidi tobacco is generally less remunerative to farmers than is VFC tobacco.

Some studies have shown other crops, such as chili or cotton, or a combination of
soybean and Rabi sorghum, as well as groundnut and Rabi sorghum, could give higher
returns than a sole crop of tobacco. However, other studies (e.g. Kiremath, 2000; studies
conducted by the Department of Agricultural Economics, University of Agricultural
Sciences, Dharward, on Economics of Bidi Tobacco in Nippani Area in Belgaum
District; and a Centre for Multidisciplinary Development Research (CMDR) study in
three Talukas in Dharward Districts) have shown different results, with bidi tobacco
yielding higher net return per hectare than soybean, sorghum, cotton or groundnut,
with only sugar cane being more profitable than tobacco. Sugar cane could be the most
favored crop in the region wherever irrigation is available. Moreover, the extensive
research programme carried out by CTRI show that currently no alternative crop
tested under monocropping gives returns comparable to tobacco. Intercropping or
double-crop returns were equal to monocropped tobacco (CTRI, 1999). It is important
to stress that tobacco is generally raised as a sole crop, except in areas where ample and
assured irrigation facilities allow a second crop.
Micro-level information on shifting from tobacco to other crops
(NCAER, 1994) and by CMDR showed a number of major socio-economic factors

encouraging tobacco growing:
• Richer farmers tend to Field studies carried out by the National Council of
Applied Economic Research prefer tobacco to other crops.
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• Small-scale farmers take to tobacco cultivation as something inevitable in the

absence of a suitable alternative.
• Tobacco as a crop gives superior net economic returns compared with
alternative crops.
• Tobacco is preferred due to its drought resistance and suitability for growing
under rainfed conditions. Due to tobacco’s soil preferences, cultivation is
concentrated in certain states, and even within major tobacco growing states, the
crop is grown in specific districts.
• A widespread belief prevails among farmers, especially in bidi growing areas,
that no other crops should be grown in the same land where tobacco is
cultivated, as it will lower the quality of the subsequent crops. However, this is
contrary to scientific recommendation that tobacco should be grown alternate
years.
• The prevalent practice of growing only tobacco every year is reinforced by bidi
manufacturers through their agents, who may refuse to purchase tobacco if any
other crop has been grown on the same plot. Marketing of non-FCV tobacco has
been a major problem and there have been allegations of agents exploiting
farmers.
• A well organized marketing system for FCV tobacco through the Tobacco Board
assures prompt payment to farmers, which is not the case for many other crops.
• Farmers are reluctant to give up tobacco cultivation because of heavy investment
in irrigation equipment and barns.
• A change in cropping is practicable only when some assured irrigation is
available. For example, the coming online of Nagarjuna Sagar dam led to a
radical change in cropping pattern - from tobacco to sugar cane.
• Failure of other crops raised in the past.
The farmers favour tobacco cultivation as it generally yields higher returns

than other crops. However, the cost of cultivation of tobacco is also much higher. It
seems that farmers often do not consider the full economic implications - both costs and
returns - of tobacco cultivation.
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The Tobacco Board declared a complete crop holiday for FCV tobacco in
Andhra Pradesh and lowered production targets for Karnataka from 40,000 tones in
1999/2000 to 25,000 tones for the 2000/01 season. As a result, some of the progressive
farmers devoted a part of their tobacco areas to other crops, such as sugar cane, chili,
groundnut or cotton.
The CMDR team surveyed 74 non-tobacco growers in the tobacco region of

Karnataka, to learn about reasons for not cultivating tobacco (Table 3.6). It seems that
the majority of such farmers were convinced of the economic difficulties of tobacco
cultivation. It should be stressed that more detailed studies of these aspects are needed
to derive further insights useful for policy formulation.
TABLE 3.6 Reasons why selected farmers in Karnataka did not cultivate tobacco
Reason given Percentage of farmers

1. Labor problems 10.8
2. High cost of cultivation 25.7
3. Risk involved 2.7
4. Low price of tobacco 1.3
5. Irrigation is available (facilitating other crop cultivation) 36.9
6. Disease of tobacco plant 2.7
7. Maintenance of tobacco crop is time consuming and costly 2.7
8. Other 17.6
Economics of inter-cropping systems as an approach to agricultural diversification
Field experiments on inter-cropping conducted by CTRI’s station in Pusa, Bihar,

from 1990 to 1997, showed that mixed cropping was more profitable than tobacco
monocropping. Tobacco plus garlic; tobacco plus red kidney bean; and tobacco plus
potato all showed potential to provide better returns than tobacco alone. Such inter-
cropping systems may be the first step to moving away from tobacco. A package of
mixed cropping, shifting to other crops with suitable crop insurance facilities, adequate
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farm inputs for the alternative crops, adequate marketing facilities, etc., would be
needed to ensure the success of a policy of gradually shifting from tobacco.
Economic implications of diversification on tobacco land
An attempt is made below to assess the direct implications for farmers and
agricultural laborers of shifting land from tobacco to alternative crops. CTRI identified
certain next-best crops for different areas in a number of tobaccos producing States.
Net returns per hectare from all of these crops were generally lower than from tobacco
alone. Thus, even if the farmers can grow these alternative crops, they are likely to lose
rather than gain. Moreover, given the wide variations in quality and other specifications
of tobacco and other alternative crops, the determining factors will not only be prices
but also the capacity to expand production of alternative crops with requisite quality
and to put in place support infrastructure. The results of the CTRI’s studies are used
here to assess the impact on farmer income of substitution of tobacco by the next best
alternative crops, while the official data on Cost of Cultivation of Principal Crops in
India has been used to analyze implications for employment. The assessment has been
worked out on a per hectare basis where such data are available.
The reduction in net income that might result from a shift to the next most
profitable crop is estimated to average about 23 percent. This would amount to a
considerable loss, especially for the marginal and small-scale farmers that constitute the
bulk of the farmers in most States.
Bigger-scale farmers tended to adopt tobacco cultivation more than others. In

rural areas, a large number of households depend largely on tobacco for their cash
income, especially in the three major tobacco growing states. Most of the marginal and
small-scale farmers practice tobacco monoculture and rely mainly on this crop for their
livelihood. They have to buy staple grains and other essential items for family
consumption.
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A study on the Tobacco Industry in Andhra Pradesh, commissioned by the

Tobacco Institute of India, assessed the expenditure of tobacco farmers on baskets of
household goods and services. The marginal and small-scale farmers depended on
tobacco as the main source of their family income and livelihood. The overall average
annual income of the tobacco farmer in the State came to about Rs l5 000. The largest
share of household consumption expenditure was devoted to food items, some 67
percent. In the absence of detailed information in the study on consumption patterns,
results of the survey conducted by the National Sample Survey of Household Consumer
Expenditure for 1993/94 for Rural Andhra Pradesh (NSSO, 1996) can serve as a proxy.
Among food items, cereals and pulses accounted for 24 percent and 4 percent
respectively, with annual cereal consumption per household about 800 kg. Other major
food items included milk and milk products (9.7 percent); fruit and vegetables (7.7
percent); and meat, eggs and fish (3.3 percent). Of non-food items, fuel and light
accounted for 7.3 percent, followed by clothing (5.3 percent), while cigarettes and bidi
were 2 percent of total household expenditure. Tobacco farmer’s household annual
income and expenditure in Andhra Pradesh are summarized in Table 3.7.
To assess the impact on the food security of the tobacco-growing farmers if they
were to shift their tobacco land to other crops, the overall reduction in income per
hectare of 23 percent from the alternative crops has been used. With the loss of income
from the tobacco crop, the farmer would need to readjust the family consumption
expenditure pattern, either by devoting a higher share of family expenditure to food or
by reducing food consumption, especially among the marginal and small-scale farming
households. In the event of a total switch from tobacco production, with a consequent
estimated average drop of 23 percent in annual household income, cereal consumption
would contract by around 10 percent. Average family cereal consumption could decline
from 800 to 720 kg. This would have an adverse affect on the health and well-being of
marginal and small-farmer’s families, who are already undernourished.
A shift away from the tobacco crop would be likely to reduce the demand for
hired labor in most states, as the hired labor required for alternative crops is
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substantially lower. Total labor requirements for alternative crops, including family
labor, would be some 35 percent lower.
Table 3.7: Tobacco farming household annual income and expenditure in

Andhra Pradesh
Item Annual consumption

Rs Proportion (%)
1. Food 10 000 66.6
2. Clothing and travel 2 000 13.3
3. Housing 1 000 6.7
4. Entertainment 1 000 6.7
5. Other 1 000 6.7
Average income of tobacco farmers per year 15 000 100.0
Source: COSMODE, January 2000. Tobacco Industry in Andhra Pradesh: A

Compendium.
Any reduction in employment of hired labor in rural areas would seriously affect
the landless laborers, who depend for their livelihood by working mainly in the
agricultural sector, as well as for the marginal and small-scale farmers who supplement
their earnings by working on other large farms as hired laborers. Therefore, the
reduction in employment for hired labor in areas where the tobacco crop is replaced
with other crops would result in increased economic and food insecurity, not only
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among a large section of the landless in rural areas but also among the marginal and
small-scale farming families.
MARKETING CHANNELS AND PRICE DETERMINATION OF CIGARETTES
In 1984, a compulsory auction system was introduced for the Virginia varieties
normally used in cigarette manufacture and sold in overseas markets. Generally, the
farmer delivers bales of leaf to the auction platform.
The market for bidi tobacco, in contrast, is largely unregulated. As marketing of

bidi tobacco is not under the control of any government agency, bidi farmers do not get
prices as remunerative as in the case of FCV tobacco. Bidi tobacco is sold to traders at
negotiated prices. In most cases the agent buys the bidi tobacco crop based on the
smoke of leaf, leaf spangle and nicotine content. In most cases, the trading community
finances the farmers, and so price setting power lies with the trader, and in most cases
the farmer is not paid until almost a year after the sale occurs.
Processing of bidi tobacco is not a technology-intensive process. After the

processing of the tobacco into flakes, the agent stores the tobacco until it is dispatched
to the manufacturer. The processor also blends the tobacco according to the
manufacturer’s requirements. The purchase of bidi tobacco from the farmer begins in
February and March. After processing, the tobacco is stored for a period of 6-12
months for ageing.
The marketing and distribution of bidi tobacco continues to be the domain of the
private sector and the industry is totally free. Currently, no effective institutional
arrangements for the regulation or marketing of bidi tobacco exist, due to strong
opposition of bidi tobacco traders.
Marketing channels for leaf tobacco, bidi and cigarettes are shown in Figure 4.l.
All the marketing agencies are in the private sector, except for the Tobacco Board and
the State Trading Corporation.
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The cigarette market is oligopolistic, with four large manufacturing companies.

The Indian market for cigarettes and other tobacco products is highly price sensitive.
Following the reduction in excise duty and consequently prices in 1994, there was an
explosion in demand for micros (cigarettes shorter than 60 mm). Trade sources
estimated that consumption of micros rose from 300 million pieces in 1993 to around 4
000 million pieces in 1994, 18 000 million pieces in 1995 and over 19 000 million in 1996.
However, with the increased excise duty on these cigarettes since the 1996/97 budget,
demand has declined, and led to a drift back towards small filter products by some
smokers and towards bidis by others.
Prices of different types and size of cigarettes depend inter alia on the level of
and changes in excise duty imposed by the central government in its annual fiscal
budget. Any more than moderate increase in excise duty (say over 3 percent) effectively
raises prices of cigarettes. At times, a modest increase in taxation has helped to
maintain retail prices. Owing to the variations in prices as a result of differential
changes of taxation on different types and size of cigarettes, their share in total sales has
changed considerably.
INDIAN BIDI AND CIGARETTE INDUSTRY

The bidi industry
Bidi is tobacco rolled in a tendu leaf and tied by a string. Tendu leaf accounts for
74 percent by weight of bidi. Dark and sun-dried tobacco varieties are used in bidi
production. Almost 80 percent of bidi tobacco comes from Gujarat, and the rest comes
from Karnataka. Bidis account for over 50 percent of total tobacco use, compared with
less than 20 percent by the cigarette segment. There are an estimated 290 000 growers
of bidi tobacco.
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The collection of tendu leaf that is used to wrap bidis forms an important link for
the bidi industry. Tendu leaf is almost wholly grown on government-owned forestland,
with around 62 percent of tendu leaf being grown in Madhya Pradesh.
Annual production of tendu leaf in 1994/95 had an estimated value of Rs 14 700

million. About 2 million people are engaged in leaf collection, while another 4.4 million
people are employed directly for bidi rolling. Bidi rolling is concentrated in the states of
Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Uttar Pradesh and West Bengal. Bidis
are manufactured largely in the independent small-scale and cottage industry sector.
There are a few large manufacturers of branded bidis, which tend to be closely-held,
family-run businesses. The bidi industry is estimated to have used 268 000 tonnes of
tobacco in 1998/99, 54.4 percent of the total apparent tobacco use.
Cigarette industry
TABLE 3.8 Production, exports and imports of cigarettes in India
Year Production Imports Exports

million pieces
1950/51 20 700
1960/61 35 000
1970/71 63 100
1980/81 78 600
1981/82 90 600
1982/83 89 100
1983/84 87 300
1984/85 96 100
1985/86 82 400
1986/87 81 100
1987/88 77 800
1988/89 80 300
1989/90 83 500
1990/91 86 100 800
1991/92 85 700 6 428
1992/93 80 800 51 2 410
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1993/94 78 800 25 3 456

1994/95 84 000 86 3 463
1995/96 95 600 134 1 461
1996/97 102 300 157 1 206
1997/98 104 600 252 1 446
1998/99 101 000 35 2 543
Source: Union Budget, and foreign trade data from Directorate General of Commercial
Intelligence
Currently, there four major cigarette manufacturers in India: ITC Limited

(formerly Imperial Tobacco Co.); VST Industries Limited (formerly Vazir Sultan
Tobacco Co.); Godfrey Philips India Ltd; and GTC Industries Limited (formerly
Golden Tobacco Co., Ltd.). There are a couple of smaller-sized cigarette companies
with manufacturing facilities. As they lack the necessary marketing infrastructure, they
produce cigarettes for the large cigarette companies on a sub-contractual basis.
Production of cigarettes reached a peak of 96.1 billion pieces in 1984/85 and then
declined. It recovered again in the 1990s (Table 3.8). The Indian cigarette market was
reportedly worth Rs 66 billion in 1997 (ERC Statistics International, 1998).
The average price for a pack of ten cigarettes increased from Rs 4 in 1990/91 to
Rs 6 in 1998/99. Currently, the retail price of a pack of 10 cheap cigarettes is Rs 6,
against Rs 3 for a bundle of 25 bidis. Bidis largely escape tax as most are produced in
cottage industries across the country. Attempts to raise the taxes on bidis are often
interpreted as an attack on the poor, and therefore regarded as politically inexpedient.
Prices of cigarettes and other tobacco products in 1998/99 are compared in Table 3.9.
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TABLE 3.9 Retail prices of cigarettes and other tobacco products.
Item Average urban retail price

Bidi Rs 3.50 per bundle of 25
Cigarette Rs 6 per packet of 10
Cheroot Rs 0.45 each
Snuff Rs 17.10 per packet of 100 g
Tobacco - Huka (Huble-babal) Rs 15.85 per 1 kg.
Pan Leaf Small Rs 12 per 100
Pan Finished Ordinary Rs 2 each
Raw Leaf Rs 38.50 per 1 kg.
Source: National statistics. As at September 2000
ECONOMIC ANALYSIS OF TOBACCO MANUFACTURING ENTERPRISES
It is estimated that over 2.3 million persons depended on this sector for their
livelihood. The annual wage bill in these enterprises averaged Rs 4,300 million, and
annual wages per worker varied from Rs 8,400 in bidi factories to Rs 55,730 in
cigarette, cigar and cheroot factories. The total net value added by all enterprises
averaged Rs 15,000 million per annum, of which bidi factories contributed 41.2 percent,
and cigarette and allied industries 34.3 percent. The total annual wage bill in the
cigarette and allied industries, despite wages per worker being substantially higher, was
only 4 percent of its gross value of output, compared to 16 percent in the bidi factories,
because bidi manufacturing is more labour intensive. Bidi manufacturing is estimated
to provide employment to more than 4.4 million workers, a large number of whom are
women and children. If the forward and backward economic linkages are taken into
account, bidis generated 1,310 million workdays, whereas cigarettes generated 340
million workdays (Table 3.10).
TABLE 3.10 Employment (formal + informal) in the bidi and cigarette industry,
1994/95
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Cultivator Processor Manufacturer Wholesaler Retailer Total

Full-time
equivalent
Bidis 140 000 29 300 2 964 000 110 000 1 130 000 4 373 300
Cigarettes 124 000 2 200 10 620 110 666 886 066 1 134 128
Persons employed
Bidis 290 000 44 000 4 461 000 83 000 757 000 5 635 000
Cigarettes 267 000 3 278 10 620 81 616 543 000 906 090
Workdays (million)
Bidis 41.5 8.8 889.2 371.1 n.a. 1310.6

Cigarettes 37.1 0.7 3.2 299.0 n.a. 340.2
Note: n.a = not available
Source: Bidi and Cigarette Industry - A Comparative Status. Indian Market Research
Bureau Report, 1996.
The bidi industry provides employment to a large number of workers - some 4.4
million workers employed in bidi rolling alone. Around 22 percent of these workers
depend upon bidi rolling as their sole source of income. Table 3.11 shows comparative
gross value addition per unit in the bidi and cigarette industries. The employment
figures do not include the employment created in tendu leaf picking (in the case of bidis)
or in the supplier industries for the cigarettes industry, such as the manufacture of
paper, packaging and machinery used in cigarette manufacture.
Impact of introduction of new processing technologies and equipment
The cigarette manufacturing companies have been modernizing their processing

and manufacturing facilities, with new or upgraded machines introduced for cigarette
making. The impact of the advanced technology has been to improve processing, reduce
component prices and improve quality and efficiency. It has also reduced cigarette
damage and waste; reduced tar and nicotine levels through filterization; reduced usage
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of tobacco per cigarette; and improved cigarette paper and filter design. The share of
filter-tipped cigarettes increased from less than 30 percent in 1970 to 66 percent in 1998.
The reduction in tobacco used per cigarette has been significant. According to industry
sources, currently about 750 g of processed tobacco is used to manufacture l 000
cigarettes, against the 1 000 g used three decades ago.
However, the cigarette industry in India has generally not kept pace
technologically with the developed countries. For instance, the speed of cigarette makers
and packers in India is 2,000 to 3,000 cigarettes per minute (cpm), compared to 7,000-
10,000 cpm abroad. The plants abroad have very high levels of automation in primary
processing, material handling systems and secondary technology.
TABLE 3.11 Gross value addition by the bidi and cigarette industry
Bidi Cigarette
Gross value generated per workday (Rs) 47 192
Gross value generated per million pieces (Rs ‘000s) 87.3 724.4
Gross value added per workday (Rs.) 31 135
Gross value added per million pieces (Rs ‘000s) 58.9 508.3
Equivalent full employment (million) 4.37 1.13
Total employment created (million workdays) 1 310.6 340.1
Gross value generated (Rs million) 61 110 65 200
Source: Bidi and Cigarette Industry - A Comparative Status. Indian Market Research
Bureau Report, 1996.
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The introduction of modern technology has had little impact on prices. In fact,
retail prices of cigarettes have continued to increase, due largely to increase excise duty,
which now accounts for some 61 percent of the retail price of cigarettes in India.
DEVELOPMENTS IN TOBACCO CONSUMPTION
Total consumption of tobacco products has been increasing in India, as in many

other developing countries, notwithstanding the increased awareness of negative health
effects. Total tobacco consumption increased from around 300 000 tones in 1971/72 to
450 000 tones in 1998/99 - an increase of 1.6 percent annually. Only about 20 percent of
the total tobacco consumed in India (by weight) is in the form of cigarettes. Bidis
account for about 40 percent of tobacco consumption (about 950 billion bidis), with the
rest divided among chewing tobacco, pan masala, snuff, hookah, zarada and other
mixtures. Cigarette smoking is essentially an urban phenomenon: 80 percent of
cigarette smokers are in urban areas, while 80 percent of bidi smokers are in rural
areas.
Non-price measures to reduce demand for tobacco
Advertising restrictions
The central government regulates advertising and promotion of cigarettes. The

state governments regulate, at most, advertising of other tobacco products. Advertising
of cigarettes is currently banned on television and commercial radio stations, and in
government owned premises. Cinema, press and outdoor advertising is permitted, as is
sponsorship of sports and other events and cultural activities. The use of hoardings and
billboards is, however, restricted in certain areas and some sports grounds. Some state
governments have started to follow the policy of the central government. For instance,
in 1997, the Government of Delhi State imposed a ban on tobacco advertising. During
1997/98, some other states followed in imposing such a ban, notably Himachal Pradesh
and Goa.
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The central government has considered imposing a total ban on advertising of

cigarettes under a new Tobacco Products (Regulation of Production, Supply and
Distribution) Bill. The code would have prohibited the use of personal testimonials by
those well known or those specifically working with children. Advertisements were also
to be banned in any media aimed primarily at those under 18. However, the code had to
be withdrawn in December, 1998, because of lack of cooperation from India’s domestic
manufacturers. In particular, the code came into conflict with the promotion of tobacco
products at sport venues and the use of prominent celebrities for tobacco promotion.
The Tobacco Institute of India is preparing a new code for possible adoption by the
tobacco manufacturers, modelled on similar agreements between government and the
tobacco industry in European countries, such as the United Kingdom and the
Netherlands. The new code includes standardized health warnings, the publication of
tar and nicotine levels, and the introduction of age restrictions for tobacco purchase.
Health warnings
A single health warning (“Cigarette smoking is injurious to health”) is

mandatory on packets and any advertisements.
Other restrictions
Smoking is currently banned in government offices, public transport (apart from

air-conditioned railway coaches) and internal flights, cinema halls, theatres and
government-run stadiums.
The Central Ministry of Health and Family Welfare set up an expert committee
consisting of 21 professionals from various disciplines to examine various facets of the
tobacco industry including economics of tobacco use. Following the submission of the
report of this committee, if it is accepted by the government, additional tobacco control
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measures could be introduced, inter alia better enforcement of the control measures
already in force and some new measures.
CONCLUSIONS
Tobacco production is an important source of income for India’s farmers. While

alternative crops are available in terms of agronomic suitability, in general a move
away from tobacco production would result in reduced income and food security for a
considerable number of farmers. Manufacturing, particularly of bidis, is also a source
of employment and hence of income for a large number of people. Thus any attempts to
control the use of tobacco would need to take into account the economic impact on these
sec
RESEARCH DESIGN
NEED FOR STUDY
Training is an age old practice in every organization. Earlier training was
Improved an enhance to skill of the workers or the executives now the training is
Imparted not only to enhance skill but also introduce new skill. In brief today’s training
Programme is a demand o suits the organization activities. These activities are changing
day by day so training has become as part of their curriculum.
Training to executives so that they allot the work to the various work forces, i.e.
Deal with rapid changes in allocation.
Training to superiors, so that inter personal i.e. how to make workers efficiently.
Training to workers to enhance their skill i.e. to perform their work with less
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Wastage and productivity.
OBJECTIVES OF THE STUDY
• To identify the training activities and procedure of the organization.
• To measure the effectiveness of training and development programmers.
• To determined the contribution of training and development programmes to

improve the behavior of employees.
• To find out the perception of employees on training and development.
• To seek employees suggestions regarding the improvement in training

programmes.
• To offer suitable findings, suggestions and conclusions for this study.
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LIMITATIONS
 The time constraint there to study all the policies, it is very fast topic.
 Sample size collected is not very large.
 It is difficult to gather the information due to the reluctance of some
employees to give information.
 The result of the study depends upon the information provided by the
employees, which may be be to personal bias.
 The study is limited to the sample taken for observation which is not
exhaustive.
Methodology of the study
Research methodology is a way to systematically solve the research problem. It

may be under stood as a science of studying how research is done scientifically in it we
study the various steps that are generally adopted by a researcher in studying his
research problem along with the logic behind them.
 Source of data collection

 Sample plan
 Source of data
Data can be broadly classified as:
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1. Primary data
2. Secondary data
Primary data
Primary data are those that are original in character and are collected afresh. As
the primary data is information collected for the first time, there are several methods in
which the data is completed the methods are:
 Questionnaire
 Schedule
 Interviews
 Observation
Of these 4 methods, personnel interview and questionnaire are used for collecting the
data.
Questionnaire:
 Directly we interacting with existing employees

 We provide Questionnaire to employees
 We got feedback through that questionnaires and we understand the
satisfaction levels of employee towards the organization.
 According my personal analysis 75% of employees are satisfied with the
ML Group of companies.
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It is formalized set of questioners, which are logically and systematically and arranged
to collect the information useful for the proposed study. The questionnaire in this study
is structured containing a limited number of questions, which are easy and clear to
understand.
Schedule:
The schedule is also used as tool for the collection of data classification of
schedules. Interview Schedule, Rating schedule, Observation schedule, Document
schedule.
Personal interview:
 Directly I interact HR coordinator of ML Group of companies

 Provided information by HR Coordinator, the employees are preferring long
relationship with ML Group of companies
 Depends on the benefits provided by, ML Group of companies the employee
turn-over is very low.
It is the face-to-face systematic conversation between the interviewer and the
respondents to elicit information. This method is chosen because through this more
information can be gathered easily.
Observation:
Observation is the basic method of obtaining information about the world

around us. All observations are not scientific observations.
Secondary data
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Secondary data refers to the use of information already collected and published
or unpublished the source is basis journal, reports etc.
Sources of secondary data:
 Annual report
 Textual information available in the library
The secondary data means data that are already available. Secondary data may be
either published data (or) unpublished data.
Sampling method of the study:

The sample plan is the procedure or way in which the sampling has been done.
As no project or research can be done taken into consideration the whole of the
population or universe, the concept of sampling is used. As per the concept of sampling
only some sample is taken from the universe in order to find out the result.
The sample plan details:

 Sample method
 Sample size
 Sample unit
Sample method:
Random sampling method was using in this study.
Sample size: Sample size of 50 was taken in the study.
Sample unit: The study is directed towards all employees of all the departments.
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COMPANY PROFILE
ABOUT MADDI LAKSHMAIAH GROUP:
Maddi Lakshmaiah group of companies was founded by Mr. Maddi Lakshmaiah

in 1970. He joined in his family business in 1952. After completing of his Engineering
degree. The joint family business started payback in 1943, dealing with tobacco exports,
well before India.
Maddi Lakshmaiah Group of companies (Maddi Lakshmaiah Group) a pioneer

in Indian un-manufactured Tobacco Industry has been exporting tobacco to all over the
world for the past 3 decades. It has solidified its relationship with overseas tobacco
merchants and manufacturers.
The Group is performing excellently well from the date of its incorporation and
has been exporting large volumes of tobacco to Russia, CIS countries, UK, Europe,
African countries, China, Latin American countries, Middle east countries, Bangladesh
and Nepal etc.
The Group established its branches in Russia and European countries and has
strong ties up with African and Latin American countries and especially with the
neighbor giant china.
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Establishment of the group:
The Group is founded by Sri Maddi Lakshmaiah, a mechanical engineer after

15 years of versatile experience in tobacco industry in 1970 at chilakaluripet, Guntur
Dist., AP
The Group has 5 major concerns namely
1. Maddi Lakshmaiah and Co Ltd (MLCo)

2. Maddi Lakshmaiah Agro products Ltd (MLAP)
3. K S Subbiah Pillai and Co (India) Ltd (KSSP)
4. Maddi Lakshmaiah Exports (MLE)
5. Coromandel Agro Products and Oils Hd (CAPOL)
Excepting CAPOL which is engaged in edible oils, all are engaged in tobacco
industry. MLCO and MLAP have concentrated on processing activities where as KSSP
and MLE are leading exporters and are recognized by Govt of India as Export House.
Share holding pattern and management of the group:

Shri Maddi Lakshmaiahakshmiah and his family members are holding 100% of shares
of all the Group companies expect CAPOL where the Group is holding 66% shares. All
the partners of Maddi Lakshmaiah Exports are the family members of Sri Maddi
Lakshmaiahakshmiah.
The Group is totally managed and controlled by Shri Maddi

Lakshmaiahakshmiah and his family members only.
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Maddi Lakshmaiah Groups Infrastructure:

The Group has been successfully improving its business in all of its activities
such as domestic sales, export sales, tobacco processing and other tobacco development
activities, ware housing facilities etc.
The Group has 2 tobacco processing plants and one solvent Extraction plant in
South India. The Group owns around 1, 00,000 sq. mts of ware housing complexes in
South India.
Turn over of the Group:

The Group has sound asset base having assets spread in most of the prime
centers and ports of South India.
The Group has developed excellent infrastructure during the past 30 years.
1. Treshing Plants:
The Group has 2 most modern tobacco treshing plants. One is situated at
Ganapavaram, Chilakalutipet and another at Martur, Prakasm Dist., AP having a
combined capacity of 150 million kilos per annum and also has 4 independent redrying
plants for processing tobaccos of their own as well as on commercial basis.
2. Power generation:
The Group has in house power generation upto 6.8 m w with the help of
imported generator sets to meet the power fluctuations, power cut and power failure
etc.
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3. Tobacco Manual Processing Facility:

The Group has grading centers to process tobacco manually engaging nearly
5,000 labors. Each center has a minimum area of 20,000 sq. feet of ware housing and
processing pendalos.
4. The Group has port go downs at Kakinada.

5. The Group has warehousing complex at Sanath Nagar.
Maddi Lakshmaiah Group in Information Technology:
To grab the growing needs and development of IT industry in India, the Group
is proposing to develop IT parks in India – 100 crores investment.
The Group is developing initially in Navy mumbai around 13,866 sq. mts, of IT
Park at millennium Business Park. This project is undertaken in association with the
Maharashtra Industrial Development Corporation (MIDC) a corporation of
Maharashtra State Government.
Maddi Lakshmaiah Group has got good name in export for raw material
because of sound financial resources.
Finance Profile:
The initial investment of Maddi Lakshmaiah company is 10, 00,000/-
Authorized Initial Investment:

10,000 equity shares of Rs 100/- each
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Secures Loans:
Union bank of India, Guntur
Current A/c - 1, 77, 1, 77-09
Cash current A/c - 3, 50,000-00
Shipping loan A/c - 10,000,000
Investment fixed deposit with UBI - 50,000
Nature of activity:
This factory produces good quality of tobacco.
Production capacity:
The production capacity per each day is 1 lack 20 tonnes.
The production capacity per year is around 15/16 million tones
Incorporation:
The factory was established in Jan 1970.
• It was a private Ltd company

• The purpose of establishment of the industry in a particular place was, since it
was a rural area, there are plenty of tobacco fields
• Through it was situated at national high way, Transport facilities may be held at
minimum cost
• Though it was a slum area plenty of availability of labour
• It was the first tobacco un-manufacturing industry in India
Competitors to this organization:

The competitors to Maddi Lakshmaiah Group are
• ITC Group
• Mittapalli Group
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• Bommidala Group
• Polisetty Group
HR Position:
In Maddi Lakshmiah and Co Ltd the HR position is as displays’ on the table.
The total number of manpower in Maddi Lakshmiah Company is 876.
Let us have a look on the table regarding the HR position in the organization.
TABLE-3.17
Man Power Particulars
S.No Type of works/ Permanent Seasonal Temporary/ Total
Particulars Daily wage
1 Officers 16 - - 16
2 Staff(including 154 70 - 224
office boys)
3 Scavengers 7 - - `7
4 Female workers 233 Personal
- 74 307
5 Male workers 7 - - 7
Manager
6 Security - - 21 21
7 Engineering daily - - 50 50
wages
Welfare
8 Apprentice -Chief Time 10 Safety - Asst. 10 Medical
9 Carpenters 3 - - 3
Officer Keeper Officer (Personal) Officer
10 Gunnies 2 - - 2
11 Murtha 105 - - 105
Superviso
TOTAL Supervisor
527 80 145 752
Security Time Compound
r (Co-op Clerk Typist
Officer Keeper er
(Canteen) Stores)
Asst. PERSONEL DEVELOPEMENT
Supervisor
Head
Security (Co-op Nurse
Cook
Officer Stores)
Security Supervisor
Head Cooks (Co-op
Guards Stores) 70MADDI LAKSHMAIAH&CO.LTD
Asst.
Clerks
Cooks
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ORGANIZATION CHART
Managing
Director
Director
General Manager
Personal Finance Export Production

Leaf Manager
Manager Manager Manager Manager
Personal Circle Factory Co- A/c Plant
Staff
Officer Manager Ordinator Officer Engineer
Welfare Branch Shift Asst. Plant
Accountant
Officer Manager Incharge Engineer
Safety
Buyers Supervisors Staff Staff
Officer
Staff Staff
DATA ANALYSIS AND INTERPRETATION
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Do you attend any training programme in the present organization?
(a)YES (b) NO
TABLE 4.1
S.No ATTENDENCE OF NO OF %. OF
TRAINING PROGRAMME EMPLOYEES EMPLOYEES
1 YES 37 74%
2 No 13 26%
TOTAL 50 100%
After complete interaction with the employees through our

questionnaires, i understand that 74% of employees having very much
interest to participate the training programmes and 26% of employees are
did not having interest to participate the training programme
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ATTENDENCE OF TRAINING
PROGRAMME
NO, 13,
26%
YES, 37,
74%
FIG 4.1
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IF YES PROCEED THE FOLLOWING
2) What type of training programme did you attend?
a) ON-THE JOB b) OFF- THE JOB
a) Job instruction I) Vestibule training

b) Coaching ii) Role playing
c) Job rotation iii) Lectures method
d) Committee assignments IV) Conferences
TABLE 4.2
S.NO TYPE OF TRAINING NO.OF % OF
PROGRAMME EMPLOYEES EMPLOYEES
1 ON THE JOB 31 83%
2 OFF-THE JOB 6 17%
TOTAL 37 100%
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From the above information, I understand that 83% of employees are taking on the job
training and rest of 17% of employees are taking off the job training programme
TYPE OF THE TRAINING PROGRAMME
OFF THE
JOB, 6, 16%
ON THE
JOB, 31,
84%
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FIG 4.2
What is the periodicity of the training?
(a) For every three months (b) Yearly twice (c) Yearly once (d) Once in a while
TABLE 4.3
S.No PERIODICITY OF THE TRAINING NO.OF % OF
EMPLOYEES EMPLOYEES
1 FOR EVERY THREE MONTHS 17 46%
2 YEARLY TWICE 10 27%
3 YEARLY ONCE 7 19%
4 ONCE IN WHILE 3 8%
TOTAL 37 100%
The survey reveals that 46% of employees are said that the training programme
conducted for every three months.27% of employees are said that the training
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programme conducted for every six months.19% of employees are said that training
programme conducted for every year. And 8% of employees are said that training
programme conducted for once in a while.
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PERIODICITY OF THE TRAINING
once in
awhile, 3,
8%
yearly
once, 7,
19% Every three
months, 17,
46%
Yearly
twice, 10,
27%
FIG.4.3
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Are you satisfied with the selection process of trainees?

(a) Satisfied (b) Not satisfied (c) Can’t say
TABLE 4.4
S.No Opinion of NO.OF % OF
employees EMPLOYEES EMPLOYEES
about selection
1 Satisfied 28 75%
2 Not satisfied 4 11%
3 Can’t say 5 14%
TOTAL 37 100%
From the above information 75% of employees are satisfied.11% of

employees are not satisfied. And 14% of employees are unable to say their
satisfaction level
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SATISFACTION WITH SELECTION

PROCESS
Can't say,
5, 14%
Not
satisfied, 4,
11%
Satisfied,
28, 75%
FIG 4.4
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Are your trainers in house (or) out side trainers

(a) In-house (b) Out side house (c) Both
TABLE 4.5
S.No Place of training NO.OF EMPLOYEES % OF
EMPLOYEES
1 In the house 6 16%
2 Outside house 5 14%
3 Both 26 70%
4 TOTAL 37 100%
The survey reveals that 70% of employees are said that trainers are coming both place,
i.e. in the house and out side the house.16% of employees are said that trainers are
coming in the house. Rests of 14% of employees are said that trainers are coming out
side the house.
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PLACE OF TRAINING
IN HOUSE,
6, 16%
OUT SIDE
HOUSE, 5,
14%
BOTH, 26,
70%
FIG 4.5
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What is your rating of trainer’s effectiveness?
(a) Highly satisfied (b) Satisfied (c) Not satisfied (d) can’t say
TABLE4.6
5 TOTAL 37 100%
S.No Rating NO.OF % OF
EMPLOYEES EMPLOYEES
1 Highly satisfied 4 11%
2 Satisfied 22 59%
4 Can’t say 3 8%
From the above table 59% of employees satisfied and 22% of employees
are not satisfied.11% of employees are highly satisfied.8% of employees are
satisfied with their satisfaction level in the organization.
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RATING OF TRAINERS
EFFECTIVENESS
HIGHLY
CAN' T SAY
SATISFIED
3
4
8%
11%
NOT
SATISFIED
8
22%
SATISFIED
22
59%
FIG 4.6
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Do you feel that training programme will improve the Skills/

Performance of the employees?
(a)Yes (b) No (c) Can’t say
TABLE 4.7
S.No Training NO.OF % OF
progamme EMPLOYEES EMPLOYEES
improves skills?
1 Yes 35 95%
2 No 0 0%
3 Can’t say 2 5%
TOTAL 37 100%
From the above information 91% of employees are said that training
programme improves the skills.6% of employees are unable to say.3% of
employees said that there is no improvement to attend the training
programme.It reveals that most of the employees are said that training
programmes are best for improves the skills
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IS TRAINING PROGRAMME IMPROVE

THE SKILLS
Can't say
2
5%
No
0
0%
Yes
35
95%
FIG.4.7
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Training programmes are useful for
(a) New employees (b) Existing employees (c) Promoted employees (d) For all
TABLE 4.8
S.No. Training progamme NO.OF % OF
useful for EMPLOYEES EMPLOYEES
1 New employees 9 24%
2 Existing employees 4 11%
3 Promoted employees 2 5%
4 For all 22 60%
TOTAL 37 100%
From the above information 60% of employees are training

progammes are useful for all employees.24% of employees are training
programme are useful for new employees.11% of employees are said that
training programme are useful for existing employees.5% of employees are
said that training programme are useful for promoted employees. The
information reveals that training programme that necessary for all
employees.
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WHO NEED TRAINING PROGRAMME
NEW
EMPLOYE
ES
9
24%
EXISTING
EMPLOYE
FOR ALL
ES
22
4
60%
11%
PROMOTE
D
EMPLOYE
ES
2
5%
FIG 4.8
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Is there is feed back session after training:
(a) YES (b) NO
TABLE 4.9
S.No Is there is any NO.OF % OF
feedback EMPLOYEES EMPLOYEES
1 Yes 37 100%
2 No 0 0%
TOTAL 37 100%
From the above information 95% of employees after training programme

feedback session is conducted in their organization.
5% of employees are said that after training programme there is no
feedback session. More no. of employees are said that there is
Feedback session.
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IS THERE FEED BACK SESSION

AFTER TRAINING
No
0
0%
Yes
37
100%
FIG 4.9
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Are you satisfied with the training programme offended by the

organization?
(a) Highly satisfied (b) Satisfied (c) Not satisfied (d) can’t say
TABLE 4.10
TOTAL 37 100%
S.No Opinion about training NO.OF % OF
programme EMPLOYEES EMPLOYEES
1 Highly satisfied 6 16%
2 Satisfied 24 65%
4 Can’t say 2 5%
The survey reveals that 65% of employees are satisfied and

16% of employees are highly satisfied.14% of employees are not satisfied.
5% of employees are unable to say their opinion above training
programme.Totaly 81% employees are satisfied their training programme.
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OPINION ABOUT THE TRAINING

PROGRAMME
Can't say Highly

Not Satisfied
2
Satisfied 6
5%
5 16%
14%
Satisfied
24
65%
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FIG.4.10
CHAPTER – V
DATA ANALYSIS &

INTERPRETATI
ON
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FINDINGS
 It is observed from the study majority of the employees participated in the training
o programmers conducted by the organization.
 The employees are showing more interest towards the on the job training
o Programmes rather than off the job programmes.
 Most of the respondents i.e. 46%of employees said that the training programmes
o Conducted for every three months. Rest of the employees is said that training
o Programmes are conducted twice in a year.
 The majority employees are satisfied with the existing training programme and
they
o Are expressed that they will improve the performance.
 The trainers are both from internal and external sources
 Most of the employees are satisfied with the effective ness of trainers.
 Majority of the employees accepted that the trying program improve their
o Performance.
 Feedback sessions are their for training programmes.
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 Most of the employees are satisfied with the training programme offered by the of
o Company.
SUGGESTIONS
1. The company may be suggested to undertake off-the-job training to certain areas

along with on-the- job training.
2. Improve the Industrial relations
3. .Management should take necessary steps to make all the employees involve in
the identification training needs
4. Some of the employees expressed that they are receiving only on-the-job training
and some of the employees expressed that they are receiving only off-the-job
training. Management should take necessary steps to provide both types of
training programme to all the employees, for better results.
5. Since the employees are satisfied with existing training programmes the same
may be continued.
6. The management of Maddi Lakshmaiah group of companies should contine the

same interest towards the training and development programmes in future also.
7. Due care has to be taken for identification of the training needs of the employees.
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8. The quality of the training programme should vary according to the types of
groups of employees.Training period should be reasonable with timings of
trainee arranged as for the convenience of trainee with regular intervals.
QUESTIONNAIRE
Name: Age:
Income: Department:
(1) Do you feel that is there any need for training?
 Yes
 No
(2) What is the opinion on sources of trainers?
 External sources
 Internal sources
 Both
(3) Does the training improve the performance?
 Yes
 No
104 MADDI LAKSHMAIAH&CO.LTD

(4) Training objectives should be expressed in?
 Employee behavior
 Management design
 Practical
 Subjective classes
(5 What are the requirements needed to be training in other areas?
 On-the job
 Off-the job
(6) What is the frequency of training program?
 When employee requires
 One every six months
 Once a quarter
 Once a year
(7) Training creates a corporate image?
 Yes

(8) State the opinion on training program as a whole?
 Good
 Average
 Poor
(9) Is the training program interactive?
 Yes
 No
(10) Is the any feedback collected after the training program?
 Yes
 No
(11) Are you satisfied with the training program?
 Highly satisfied
 Satisfied
 Not satisfied


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MBA PROGRAMME

TRAINING & DEVELOPMENT

Human Resource Management (HRM) is a management function that helps

HRM is process consisting of four functions:

Meaning and importance:

Corporate manpower planning refers to the application of planning process

Human resource planning is double-edged weapon. It leads to maximum

According to “training is the act of increasing the knowledge and

NEED FOR TRAINING

The need for training arises due to the following reasons:-

 To increases productivity, improve quality of product / service, Help Company

To establish a sound relationship between the worker and job.

To upgrade skills and prevent obsolescence.

To prepare employees for future assignments.

To enhance employee confidence and morale, sense of responsibility

To minimize operational errors.

Training is the corner stone of the sound management, for it makes

The importance of training has been expressed in these words:

 Improves the morale of the workforce.

Management development programs are future oriented and more concerned

It is a long-term educational process utilizing a systematic and organized

knowledge about business environment, principles and techniques, human relations of

TRAINING AND DEVELOPMENT

Every organization needs to have well-trained and experienced people to

DISTINCTION BETWEEN TRAINING AND DEVELOPMENT

Training is a short-term process utilizing a systematic and organized

IMPORTANCE OF TRAINING AND DEVELOPMENT

Training is the corner stone of sound management for which it makes

There is greater stability, flexibility, and capacity for growth in

NEED FOR TRAINING AND DEVELOPMENT

We propose that management can determine the need for training by

1. What are the organization goals?

These questions demonstrate the close link between human resource

worker. When a manager is confronted with a drop in productivity, it may

In addition to productivity measures a high reject rate or larger than usual

Training will be judged by its contribution to performance where

Once it had been determined that training is necessary, training goals

TRAINING NEED ANALYSIS (TNA)/TRAINING NEED

An analysis of training needs an essential requirement to the design of effective

Training Need arises at three levels

INDIVIDUAL LEVEL:- Training needs analysis at individual level

BENEFITS OF NEED ASSESSMENT

Training programs are designed to achieve specific goals that meet

Trainers may be informed about the broader need of the trainees.

The trainer – Before starting a training program, a trainer analyses

The trainees – A good training design requires close secretions the

– It is one of the most important considerations in designing a

Trainer Training climates Trainees

Training Training Training Support Program

Terminal Training On\off the

Lesson objectives Categorize contents into information,

Sequence the contents

Determine learning outcomes for

Trainees’ learning style – the learning style, age, experience,

Training strategies – Once the training objective has been

Training topics – After formulating a strategy, trainer decides upon

Sequence the contents- contents are then sequenced in a following

to select most appropriate tactics or methods or techniques. The

SUPPORT FACILITIES – IT can be segregated into printed

CONSTRAINTS – The various constraints that lay in the

o Accommodation, facilities and their availability

o Furnishing and equipments