A PROJECT REPORT ON .

COMPETENCY MAPPING AND TRAINING NEED STUDY/ANALYSIS OF MANAGERS AT ITC Ltd EDO (Eastern District Office), KOLKATA

Master of Business Administration (MBA)

EXECUTIVE SUMMARY Project Title: COMPETENCY MAPPING AND TRAINING NEED STUDY/ANALYSIS OF MANAGERS AT ITC Ltd EDO (Eastern District Office), KOLKATA Organization: ITC Ltd, Kolkata. Organization guide: Mr. Anirban Routh Assistant Manager, H.R (EAST) ITC Ltd EDO, Kolkata. Institutional guide: Ms. Pubali Borthakur, Faculty, NERIM, Guwahati Duration Of the study: - 1st June 2010 to 31st August 2010 Primary Objective: To identify the competency gaps and traininig need study/analysis of managers at ITC Ltd EDO (Eastern District Office), Kolkata.

Secondary Objective: To know whether training is designed keeping in mind the organization and individual goals. To know whether training programs fulfill trainees requirements. To identify the training gaps and successfully close the gaps.

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

Process

groups and total human organisation.

Training allocate, conserve, utilise, Develop and reward people.

Human Resource Management is improvement of inception, development, motivation, maintenance of human resource in the organization. Like every modern organization ITC also wishes to have individuals qualified to accept responsibilities .For this company needs to provide opportunities for continuous employee development not only for the present job but also their future job. This is possible through effective training need analysis of the employees as per the organizational goals. ISSUE OF THE STUDY Man, material, machine and money are four factors of production. Human being constitutes the organization at all levels and is the only dynamic factors of production. It is relatively easy to handle other resources.

Output

Input

Individuals,

Acquire,

Services renderd by individuals and groups to organisation

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

OBJECTIVES OF THE STUDY . Primary Objective: To identify the competency gaps and traininig need study/analysis of managers at ITC Ltd EDO (Eastern District Office), Kolkata.

Secondary Objective: To know whether training is designed keeping in mind the organization and individual goals. To know whether training programs fulfill trainees requirements. To identify the training gaps and successfully close the gaps.

SCOPE OF THE STUDY The objective and issue of the study itself define the scope. Scope of the study is confined to Eastern Region.

A BRIEF INTRODUCTION TO COMPETENCY MAPPING

Competency mapping identifies an individual strengths, weaknesses in order to help them better understand themselves and to show them where career development efforts need to be directed. Competency mapping is a process of identifying key competencies for an organization and/or a job and incorporating those competencies throughout the various processes (i.e. job evaluation, training, recruitment) of the organization. We would define a competency as behaviour (i.e. communication, leadership) rather than a skill or ability. Competencies are derived from specific job families within the organization and are often grouped around categories, such as strategy, relationships, innovation, leadership, risk-taking, decision-making, emotional intelligence, etc. The word competencies is used in many contexts, with very different meanings. Basically, competencies fall into three categories or types: 1. Organizational competencies unique factors that make an organization competitive 2. Job/Role competenciesthings an individual must demonstrate to be effective in a job, role, function, task, or duty, an organizational level, or in the entire organization. 3. Personal competenciesaspects of an individual that imply a level of skill, achievement, or output. The basic personal competencies encompass the following: Intellectual Competencies: Those which determine the intellectual ability of a person. Motivational Competencies: Those which determine the level of motivation in an individual. Emotional Competencies: Those which determine an individual's emotional quotient. Social Competencies: Those that determine the level of social ability in a person.

The steps involved in competency mapping are presented below: a) Conduct a job analysis by asking incumbents to complete a position information questionnaire (PIQ). This can be provided for incumbents to complete, or used as a basis for conducting one-on-one interviews using the PIQ as a guide. The primary goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs. b) Using the results of the job analysis, a competency based job description is developed. It is developed after carefully analyzing the input from the represented group of incumbents and converting it to standard competencies. With a competency based job description, mapping the competencies can be done. The competencies of the respective job description become factors for assessment on the performance evaluation. Using competencies will help to perform more objective evaluations based on displayed or not displayed behaviors.

c)

d) Taking the competency mapping one step further, one can use the results of ones evaluation to identify in what competencies individuals need additional development or training. This will help in

focusing on training needs required to achieve the goals of the position and company and help the employees develop toward the ultimate success of the organization.

TECHNIQUES USED IN COMPETENCY MAPPING Job evaluation based competency mapping include the following steps: Conduct a job analysis by asking incumbents to complete a Role Profile Questionnaire The primary goal, is to gather from incumbents what they feel are the key behaviors necessary, to perform their respective goals. Using the results of the job analysis, we develop a competency based job description. With a competency based job description, we begin mapping the competencies throughout the human resource processes. The competencies of the respective job description become the factors for assessment on performance evaluation.

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

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

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

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

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

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

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

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

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

Following are the criteria for a successful use of critical incident technique: a) Data are centered on real critical incidents that occur during a task performance. b) Tasks are performed by real users.

c) Users are located in their normal working environment. d) Data are captured in normal task situations, not contrived laboratory settings. e) Users self report their own critical incidents after they have happened. f) No direct interaction takes place between user and evaluator during the description of the incident(s). g) Quality data can be captured at low cost to the user. Critical Incidents Technique is useful for obtaining in-depth data about a particular role or set of tasks. It is extremely useful to obtain detailed feedback on a design option. It involves the following three steps:

Step 1: Gathering facts: The methodology usually employed through an open-ended Questionnaire, gathering retrospective data. The events should have happened fairly recently: the longer the time period between the events and their gathering, the greater the danger that the users may reply with imagined stereotypical responses. Interviews can also be used, but these must be handled with extreme care not to bias the user. There are two kinds of approaches to gather information: 1) Unstructured approach: where the individual is asked to write down two good things and two bad things that happened when one was carrying out an activity. 2) Moderate structured approach: where the individual is asked to respond to following questions relating to what happened when he/she was carrying out an activity. 1) What lead up to the situation? 2) What was done that was especially effective or non- effective? 3) What was the result (outcome)?

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

Step 3: Creating feedback: It is important to consider that both positive and negative feedback be provided. The poor features should be arranged in order of frequency, using the number of responses per category.

Same should be done with the good features. At this point it is necessary to go back to the software and examine the circumstances that led up to each category of critical incident. Identify what aspect of the interface was responsible for the incident. Sometimes one finds that there is not one, but several aspects of an interaction that lead to a critical incident; it is their conjunction together that makes it critical and it would be an error to focus on one salient aspect.

Some of the advantages of critical incident technique are presented below: a) Some of the human errors that are unconsciously committed can be traced and rectified by these methods. b) Users with no background in software engineering or human computer interaction, and with the barest minimum of training in critical incident identification, can identify, report, and rate the severity level of their own critical incidents. This result is important because successful use of the reported critical incident method depends on the ability of typical users to recognize and report critical incidents effectively. Some of the disadvantages of critical incidents method are presented below: a) It focuses on critical incidents therefore routine incidents will not be reported. It is therefore poor as a tool for routine task analysis. b) Respondents may still reply with stereotypes, not actual events. Using more structure in the form improves this but not always. c) Success of the user reported critical incident method depends on the ability of typical end users to recognise and report critical incidents effectively, but there is no reason to believe that all users have this ability naturally.

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

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

The key points of PCT to remember are:

Perceptions influence expectations, and expectations influence perceptions. The medium through which this happens is known as the construct system. Construct systems are unique to the individual and develop throughout life.

Repertory Grid will help to draw out and make explicit the expertise that every manager has, and help lay out their problems in such a way that solutions may become more obvious. It allows the interviewer to get a mental map of how the interviewee views the world, and to write this map with the minimum of observer bias. Kellys practice is then not to have this map interpreted by an expert, who judges where the problems and stresses are; rather Kellys approach is to discuss the map with the interviewee, to talk about things that perhaps the interviewee had not faced about himself before, to discuss with the interviewee the survival value of that particular map as a means of navigating around his or her life-space. The theory of personal construct is being used in multiple applications and understanding it requires substantial reading .In repertory grid technique, respondents are asked to think of the top ten performers and ten poor performers they have witnessed in a role. They are asked to give behaviours that differentiate the best from the worst. These behaviours are used to create appropriate constructs for arriving at successful behaviors .In the repertory grid process the respondents will identify a set of superior performers and another group of ineffective performers. They to justify their identification of people will identify a set of variables: Knowledge Skill Attitude Ethic Self Concept Appearance, etc

which are associated with superior and average performers.

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

The International Personnel Management Association (IPMA) has identified the following elements, essential for a process to be considered as assessment center: a) A job analysis of relevant behavior to determine attributes skills, etc. for effective job performance and what should be evaluated by assessment center. b) Techniques used must be validated to assess the dimensions of skills and abilities. c) Multiple assessment techniques must be used. d) Assessment techniques must include job related simulations. e) Multiple assessors must be used for each assessed. f) Assessors must be thoroughly trained. g) Behavioral observations by assessors must be classified into some meaningful and relevant categories of attributes, skills and abilities, etc. h) Systematic procedures should be used to record observations. i) Assessors must prepare a report. j) All information thus generated must be integrated either by discussion or application of statistical techniques. Data thus generated can become extremely useful in identifying employees with potential for growth. Following are some of the benefits of the assessment center: a) It helps in identifying early the supervisory/ managerial potential and gives sufficient lead time for training before the person occupies the new position. b) It helps in identifying the training and development needs. c) Assessors who are generally senior managers in the organization find the training for assessor as a relevant experience to know their organization a little better. d) The assessment center exercise provides an opportunity for the organization to review its HRM policies. Assessment Centre is a complex process and requires investment in time. It should safeguard itself from misunderstandings and deviations in its implementation. For this, the following concerns should be ensured: a) Assessment Centre for diagnosis is often converted as Assessment Centre for prediction of long range potential. b) The assessors judgment may reflect the perception of reality and not the reality itself. c) One is not sure if the benefits outweigh the cost.

Assessment Centre comprises a number of exercises or simulations which have been designed to replicate the tasks and demands of the job. These exercises or simulations will have been designed in such a way that candidates can undertake them both singly and together and they will be observed by assessors while they are doing the exercises. Most organizations use a combination of exercises to assess the strengths, weaknesses and potential of employees. These are group discussions, positive task roles, role plays, interviews etc. It is difficult to suggest which method is more useful or more accurate. Some methods are easy to use but quality of data may be inadequate. Some others may yield superior quality data but expensive and time consuming. Certain methods and tools are such that they cannot be used in all the cases. Some jobs may require the use of more than one method or tool for their mapping.

A BRIEF INTRODUCTION TO TRAINING & DEVELOPMENT

Training and Development Definition: Training is the formal and systematic modification of behavior through learning which occurs as a result of education, instruction, development and planned experience. Training and development constitute an ongoing training process in any organization. Training involves an expert working with learners to transfer to them certain areas of knowledge or skills to improve in their current jobs. Development is a broad, ongoing multi faceted set of activities ( training activities among them) to bring someone or an organization upto another threshold of performance, often to perform same job new role in the future. The purpose of training The aim of training is to help the organization achieve its purpose by adding value to its purpose by adding value to its key resource the people it employs. The purpose of training is to : To increase productivity and quality. To promote versatility and adaptability to new methods. To reduce the number of accidents. To reduce labour turnover. To increase job satisfaction. To increase efficiency.

Analysing training needs: An analysis of training need is essential requirement to design effective training. The purpose of training need analysis is to determine whether there is gap between what is required for effective performance and present level of performance. Training need analysis is conducted to determine whether resources are available or not. It also helps to plan budget to the company,areas where training is required and also highlights the occasion where training might not be appropriate and alternative action is required. Training need arises on three levels.

Training Need

Organisational Level

Operational Level

IndividualLevel

Organisation Level Training Need: Training needs analysis on organization level focuses on strategic planning, business need and goals. It starts with the assessment of internal environment of the organization such as, procedures, structures, policies, strengths, and weaknesses and external environment such as

opportunities and threats. After doing the SWOT analysis, weaknesses can be dealt with the training interventions, while strengths can further be strengthened with continued training. Threats can be reduced by identifying the areas where training is required. And, opportunities can be exploited by balancing it against costs. For this approach to be successful; the HR department of the company requires to be involved in strategic planning. In this planning, HR develops strategies to be sure that the employees in the organization have the required Knowledge, Skills, and Attributes (KSAs) based on the future KSAs requirements at each level. Based on the information collected, training Need analysis (TNA) is done. Operational Level Training Need analysis at operational level focuses on the work that is being assigned to the employees. The job analyst gathers the information on whether the job is clearly understood by an employee or not. He gathers this information through technical interview, observation, psychological test; questionnaires asking the closed ended as well as open ended questions, etc. Today, jobs are dynamic and keep changing over the time. Employees need to prepare for these changes. The job analyst also gathers information on the tasks needs to be done plus the tasks that will be required in the future. Individual Level Training need analysis at individual level focuses on each and every individual in the organization. At this level, the organization checks whether an employee is performing at desired level or the performance is below expectation. If the difference between the expected performance and actual performance comes out to be positive, then certainly there is a need of training. However, individual competence can also be linked to individual need. The methods that are used to analyze the individual need are:

Appraisal and performance review Peer appraisal Competency assessments Subordinate appraisal Client feedback Customer feedback Self-assessment or self-appraisal

The Five Basic Steps for training need analysis: Analyse the situation. Evaluate the training in place. Identify Gaps. Assess the options. Choosing the solution.

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

Are we making any major changes in our business process? How do those changes impact our employees' job functions? What information and training will our employees need to continue being successful in their jobs? How will our employees best accept and integrate this information and training? How best do our employees learn? What is the best way that we can get this information and training to our employees? Are there any corporate needs that are not being met? Does our staff have the skills they need to do their jobs effectively?

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

Detailed corporate training manuals New hire orientation materials Online resources and references

These materials can and should become an integral part of any new training solution. Review the procedures that are already in place, before adapting them. IDENTIFY GAPS: The next step is to identify current practices and the change initiative that is required. Scanning the resources available to prepare and deliver training like identifying what an organization can or cannot provide is a crucial part of need analysis. Following are few examples of gaps that an organization can identify: 1. 2. 3. 4. How much cost would be incurred? Is the current required resource available? Is the staff confident enough to handle the task? Do we have enough time planned to complete the task along with other currently running projects?

Assess the Options Once an organization has established the requirements of its needs analysis, it can utilize that knowledge to assess the options i.e. whether to outsource the trainers or not. There are literally hundreds of companies and

individual consultants waiting to tend the training needs. When choosing the training solution that will best meet an organization's needs, one should consider the following questions:

Does this company or individual have a proven track record of satisfied customers and positive returns on training money spent? Do they understand and work well with the organizations business culture? Will they be able to fill in all the gaps that have been identified? Can they provide multiple delivery options?

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

Did the needs analysis address already-established issues? What other gaps did the needs analysis uncovers, and are they relevant to the organizational culture? If the training program is conducted by through outsourcing will the consultant be able to provide timely solutions and multiple options? Does the consultant seem to "get" the organizations corporate culture, enough to advise accordingly?

COMPANY PROFILE

There are very few business enterprises across the world, which at 100 years, are still firing on all cylinders to reach an even higher orbit of growth. ITC is one such enterprise. ITC completed 100 years on August 24,2010. The ITC story is one of transformation from a single product company to one of Indias largest multi-business corporate enterprises in the private sector. This long and inspirational journey of challenge and change has unfolded in tandem with Indias own evolution and growth across ten decades. These 100 inspiring years have been marked by an overarching Vision to serve a larger national purpose, to live by the strong Values of Trusteeship and to nourish internal Vitality to create superior value for all stakeholders. It has been the journey of an organisation that has consciously put Country before Corporation - an enterprise that proudly echoes the credo Lets Put India First. It has been a journey of leadership, not only in shareholder value creation, but also in serving all stakeholders and in meeting societal expectations. It has been a voyage that has brought ITC global recognition as an exemplar in sustainability practices - the only company in the world of its size to be carbon positive, water positive and solid waste recycling positive. This long and eventful travel across a century has been particularly meaningful and satisfying because it has enabled ITC to create over 5 million sustainable livelihoods. With a market capitalisation of more than Rs.100,000 crores, ITC steps into its next century with an ambitious portfolio of businesses for tomorrow that span Fast Moving Consumer Goods, Paper & Packaging, Hotels, Agri-Business and Information Technology. Its aspirations are matched by its formidable array of enterprise capabilities - deep consumer insights, international quality products, world-class human capital, globally contemporary business processes, powerful brands, an excellent trade marketing and distribution infrastructure and investments in cutting-edge R&D. Like all long and eventful journeys, ITCs too had a small beginning, way back in 1910 when the British owned Imperial Tobacco Company set foot in Calcutta. The mass produced cigarette was still a novelty then. High quality Virginia tobaccos had never been grown in this vast subcontinent. Even before the Company was registered as Imperial Tobacco, it had already set up Indias first cigarette factory at Munger (1908) and commenced tobacco leaf buying operations in Andhra Pradesh (1909). Around 1911, the Company started

working in partnership with farmers in South India for crop development. The Indian Leaf Tobacco Development Company was set up in 1912. The focus, even then, was on exploration, improvisation and innovation. Working with farmers and experts, right blends were developed from tobacco grown in untried tracts. New sources were located and farming was encouraged and supported. Ways and means to reach products to markets across vast distances in a poorly connected subcontinent were found and fostered. Communicating in a dozen different languages across a patchwork of cultures, the Company honed its skills in building and growing brands and nurturing markets. At the time of Independence, ITC had achieved self-sufficiency in raw material by helping to establish the cultivation of flue-cured Virginia tobacco in the country. It had five cigarette and two leaf processing factories, one printing and packaging unit and was in the process of setting up another - one of the most modern of that time. Manufacturing in those days was heavily import-dependent. Aspiring for a self-sufficient future, the Company spearheaded indigenisation of all aspects of production, working in collaboration with other companies and small-scale ancillary units. By the late 50s, its imports had fallen to a fraction and, by 1969, virtually all materials were sourced from within the country. The early 70s witnessed a momentous turning point. The Foreign Exchange Regulation Act of 1973 came into being. The regulatory pressure on corporates to reduce foreign ownership combined with the vision of the first Indian Chairman Shri Ajit Narain Haksar, paved the way for Indianisation of the Company and its Management. The vision was to build an Indian enterprise that would derive its inspiration from the needs of Indian society and craft its growth strategies accordingly. It triggered ITCs first major diversification into the Hotels business (1975), followed by its entry into the Paperboards business (1977). Both were critical nation-building interventions. The hotel industry would open new avenues for foreign exchange earnings by boosting tourism. The engagement with the paperboard industry would mark ITCs entry into the core sector, with an opportunity to create livelihoods in a backward area. This changing character of the Company found expression in the change of its name from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970, moving on to I.T.C. Limited in 1974 and finally to the current form of ITC Limited without full stops in 2001. In the decade and a half following the initial diversification forays into hotels and paperboards, the Company ran into severe challenges. These were highly capital-intensive businesses which made huge demands on the Companys resources. Since these businesses were structured as separate companies during this period, their ability to raise capital and achieve meaningful scale was stunted. Consequently, these businesses remained on a slow growth path.

The decade from the mid-eighties to the mid-nineties witnessed feverish strategic activities. The Company entered the financial services business and set up ITC Classic Finance Ltd. Almost simultaneously it entered the edible oils business and set up ITC Agro Tech Ltd., which was to later launch the popular brand Sundrop. During this period, the Hotels business took its iconic restaurant Bukhara beyond the shores of India into New York and Chicago. ITC acquired the specialty papers company Tribeni Tissues Ltd.. Aspiring to become an international trading house in the likeness of a Japanese sogo shosha, ITC Global Holdings Pte Ltd. was set up in Singapore. Additional capital was raised through an issue of Global Depository Receipts to finance the Companys expanding profile. When the current Chairman took over in 1996, ITC was experiencing an unenviable mix of challenges: its core cigarette business had just been slapped with a retrospective excise duty demand of Rs. 803 crores; its earlier diversifications into hotels and paperboards had not reached fruition for want of adequate investments; its more recent forays into financial services, edible oils and international trading were still incurring losses; the Companys weak diversification performance was facing severe criticism; to compound matters, a battle for control of the Company had ensued amidst a huge public smear campaign which significantly damaged its reputation; and India had just entered into a phase of economic liberalisation, changing the countrys competitive landscape beyond recognition.

The ITC Way

ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. ITCs corporate strategies are :

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive.

Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITCs various businesses. Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

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

Board of Directors
CHAIRMAN
Y C Deveshwar

EXECUTIVE
K Vaidyanath

DIRECTORS
K N Grant

NON-EXECUTIVE
A Baijal S H Khan

DIRECTORS
AV Girija Kumar D K Mehrotra

S Banerjee S B Mathur

H G Powell Basudeb Sen

P B Ramanujam B Vijayaraghavan

Anthony Ruys

DIVISIONAL MANAGEMENT COMMITTEE (DMC) OF INDIAN TOBACCO DIVISION:Sanjiv Puri - Divisional Chief Executive. H. Malik - Member. A.K. Mukerji Member.

The ITC Vision & Mission:

ITC VISION: Sustain ITCs position as one of Indias most valuable

Corporation through world class performance, Creating growing value for the Indian economy and the companys stakeholders

Mission

To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable Stakeholder value

COMPETENCY MAPPING IN ITC

The process of competency mapping in ITC: The process of competency mapping

can be understood from the following chart:

1.COMPETENCY IDENTIFICATION

2.YEARLY COMPETENCY PLANNING

3.REVIEW AFTER ONE YEAR

4.IDENTIFY GAPS

5.CLOSE THE GAP WITH APPROPRIATE

MEASURES

However to have an broader insight into the process the steps mentioned in above chart are briefly described as follows:

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

ORGANISATIONAL COMPETENCY:

FRAMEWORK

OF

ITC

Ltd.

REGARDING

THE

MANAGERIAL

ORGANIZATION AND BUSINESS FOCUS 1.BUSINESS ENVIRONMENT

INNOVATION & CONTINUOUS IMPROVEMENT 1. CONTINUOUS IMPROVEMENT & PROBLEM SOLVING

PEOPLE LEADERSHIP

RESULT ORIENTATION

DEVELOPING SELF & OTHERS 1.SELF DEVELOPMENT

1.COMMUNICATION 1.OBJECTIVE & ALIGNMENT. SETTING. 2.RESOURCE MANAGEMENT & EXECUTION EXCELLANCE. 3.DECISION MAKING. 4.COST CONCIOUSNESS

2 .TEAMWORK 2. BUSINESS .2. BEST PLAN/ PRACTICE STRATEGY SHARING & REPLICATION. CUSTOMER RELATIONSHIP

2. DEVELOPMENT OF OTHERS.

3.PERSONAL EXAMPLE & ROLE MODELLING.

2. YEARLY COMPETENCY PLANNING:

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

A sample form format which is to be filled by the reviewer and reviewee is given below: PERSONAL DETAILS NAME: EMPLOYEE NO: DESIGNATION:

JOB LEVEL: GRADE: FUNCTION: UNIT: PERIOD UNDER REVIEW: 1ST REVIEWER (Name & Designation) 2nd REVIEWER (Name & Designation) TO

Competency
Organisation & Business Focus

Sub-competency
Business Environment

Proficiency Level

Areas of strength and development

Area of strength: 1: Competency Area( Sub-competency) 2: Competency Area( Sub-competency)

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

Innovation & Continuous Improvement

Continuous Improvement & problem solving

Best practice sharing & replication

People Leadership

Communication & alignment

Team work

Personal Example & Role Modeling

Area of Development: 1: Competency Area( Sub-competency) 2: Competency Area( Sub-competency) 3: Competency Area( Sub-competency)

Result Orientation

Objective Setting Resource management & execution excellence Decision making Cost conciousness

Developing Self & others

Self Development

Development for others

ITC has a particular organizational framework for filling up the COMPETENCY MAPPING process which is to be filled by the reviewer and reviewee based on review discussion on the following five scales of proficiency level: 1: Rarely Demonstrated 4: Consistent Demonstration with finer nuances 5: Can coach others 2: Inconsistent Demonstration 3: Consistent Demonstration

However not more than 3 areas of strength and development should be mentioned in the form as per organizational guideline. 3. REVIEW AFTER ONE YEAR: The planned competencies for individual executives are to be reviewed periodically to assess whether the planned parameters are achieved or not. The sample format for the review form is as follows:

To ascertain the implementation of plan and record reasons of non-adherence the sample format is: Competency Development Plan Adherence(Yes/No) If no reasons

To finalize the development plan for the current yeas not more than two areas are to be prioritized.The sample format for the identifying the said purpose is as follows: Competency Sub-competency Expected behaviour Input Input Details* type(OTJ/Selflearning/Training Program)

Name of the Date and signature Reviewee Name of the 1st Date and signature Reviewer Name of the 2nd Date and signature Reviewer *To be filled with the HR Manager-Reference Guide

4. IDENTIFY THE GAPS: The next step is to identify the gaps by comparing the planned

proficiency level with that of the achieved in the subsequent year. 5. CLOSE THE GAPS: The last yet the most important step is to come up with an effective plan to close the gaps where it exist through the following:

Counselling. Self-learning. OTJ. Training Program.

This study has been undertaken to study the competency mapping of managers from LEVEL -4 to LEVEL-6. Considering the experience and the seniority of the managers at different levels of the management the responsibilities are defined and the job activities are specified as follows: LEVEL -7: Area Executive, their job responsibilities mainly comprises of fieldwork, execution and followership. LEVEL-6: Area Managers, their job responsibilities involves along with execution some level of planning. LEVEL-5: Assistant Managers, their responsibilities generally involves planning, coordination and analysis. LEVEL-4: Regional Managers and Branch Managers, they are responsible for strategizing for a larger work group/ exercise a larger span of control.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Objective of the study:

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

Secondary Objective: To identify the competency gaps gaps and successfully close the gaps. To identify the training needs. To design the training programs accordingly.

RESEARCH AREA: Universe:

ITC EASTERN DISTRICT OFFICE, KOLKATA.

Universe belongs to Level 4, 5 and Level 6 managers belonging to ITC. Unstructured research method.

Research Method:

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

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

the organization's strategies and plans agreed employee goals and targets the employees performance results the employees role description the employees stated career aspirations

A planned score of competency was undertaken in the year 2008-09 for different level of managers. In 2009-10 the achieved competency score was assigned against the same managers. The achieved score was then compared with the planned score to identify the gaps.

Data type: Secondary POPULATION: DEPARTMENTS No. of level-4 managers Marketing 11 No. of level-5 managers 30 No. of level-6 managers 35

Finance

H.R

Logistics

Total no. of managers across three levels: 87 LIMITATION OF THE STUDY: The study focuses on three level of managers i.e level -4, level-5 and level-6 across four departments viz; marketing,finance, H.R, and logistics due to constraint of time. It focuses on mangers of Eastern Region only.

TRAINING MODULE FOR LEVEL- 5 MANAGERS:

COMPETENCY: ORGANISATION AND BUSINESS FOCUS. SUB-COMPETENCY: BUSINESS ENVIRONMENT.

MODULE NO: 101 TRAINING NEED: PURPOSE:

To enhance the understanding of business environment among Level-5 managers.

OBJECTIVES:
DATE: TIME: VENUE: BATCH SIZE: 30 FACULTY: MODE OF TRAINING: Powerpoint presentations, games, exercises, quizzes, case studies etc. TRAINING REQUIREMENTS: INFRASTRUCTURE: FACILITIES/ MATERIALS: Projectors, audio-aids, paper,pen.
EVALUATION: MODE: Monitoring performance. PERIOD: 6months EVALUATOR:

Analyses & identifies patterns and trends for generating plans/contingencies. Proactively interfaces with external environment/ industry as the organizational representative. Understands & tracks competition. Tracks action as and when required.

POST TRAINING PLANS: RETRAINING. COUNSELLING. REINFORCEMENT.