A STUDY ON TRAINING AND DEVELOPMENT IN VESTAS WIND TECHNOLOGY PRIVATE LIMITED, CHENNAI
CONTENTS
Chapter No. I II III IV V
Title Conceptual framework Methodology Organization Profile Data Analysis and Interpretation Findings, Suggestions and Conclusion Bibliography Annexure
Page No. 06-16 17-19 20-45 46-61 62-67 68 69-73
CHAPTER-I
CONCEPTUAL FRAMEWORK
\
TRAINING AND DEVELOPMENT
Employee Training is distinct from management or Executive Development. While the former refers, training is given to employees in areas of operations, techniques and allied areas, while the latter refers to developing an employee in areas of important techniques of the Management Administration, Organization and allied areas.
Training means to continuously nurture the employees or workers towards better performance in a systematic way. This can be either at the work spot or at the workshops. This is mainly to improve the technical skills of the employees or workers. Development means bringing out the actual potentialities and thus willing to high motivation and commitment standards towards work. This will be generally with regard to improvement in the behavioral skills.
CONCEPT OF TRAINING
INTRODUCTION
Every organization needs to have well-trained and experienced people to perform the activities that have to be done. So, every modern Management has to develop Human Resources Development. In a rapidly changing society, employee training is not only an activity that an organization must arrange if it is to maintain a viable and knowledgeable workforce. Training is thus a practical and vital necessity.
MEANING Training is the process of increasing the knowledge and skill of an employee for doing a particular job. Training is short-term educational process and utilizing a systematic and organized procedure by which employees learn knowledge and skills for a definite purpose. Training improves, moulds, changes the employee’s knowledge, skills, behavior, aptitude and attitude towards the requirement of the job and organization. OBJECTIVES OF TRAINING ? Training is mainly job-oriented. ? To impart the basic knowledge and skill to the new entrants and enable them to perform their jobs well.
? To teach the employees the new techniques and ways of performing the jobs and operations.
? To prepare the employees for higher level task and build up a second line of
competent officers.
NEED FOR TRAINING
Training is considered as a key input for developing manpower in an organization so as to improve their job performance. The need for training arises on account of the following reasons:
?
To match the employee specifications with the job requirements and organizational needs. Organizational viability and transformation process. Latest technological advances should be adopted computerization and automation. i.e., mechanization,
? ?
?
Internal mobility from one job to another due to promotion and transfer to employees.
IMPORTANCE OF TRAINING Training is an important process of imparting knowledge to the employees. It helps in improving productive and behavioral pattern. Training is advantageous not only to the organization but also to the employees. Training is vital and necessary activity in all organizations. It plays a large part in determining the effectiveness and efficiency of the establishment. - DALE.S.BEACH BENEFITS OF TRAINING PROGRAMME A well-planned and executed Training Programme can provide the following developments: ? Higher productivity and profitability. ? Better quality of work and best work methods. ? Less wastage of time during the learning period. ? Improves high morale among the employees
? Personal growth of individuals. ? Low accident rates. ? Improves employer – employee relations.
PRINCIPLES OF TRAINING
The principles, which have been evolved, can be followed as guidelines to trainees. Clear objectives about the Training Programme are: ? Training policy for designing and implementing the training programme. ? Acquisition of knowledge and new skills through motivation. ? Reinforcement to trainees by means of awards and punishments. ? Organized material should be properly prepared and provided to the trainees. ? Learning periods has to be fixed as it takes time to learn. ? Preparing he instructor who is both good at subject and job. ? Feedback regarding the performance of the trainees in the jobs. ? Practicing the skills taught by the trainee. ? Appropriate techniques related to the needs and objectives of the organization. METHODS OF TRAINING Training is essential for the smooth economic timely and efficient service of the organization. Training methods or techniques represents the medium of imparting skills and knowledge to the employees. There are two methods of training: 1. On-the-job training methods 2. Off-the-job training methods
ON THE JOB TRAINING
This method is also called as “Internal Training Method”. This is suitable for all levels of employees – workers, supervisors and executives. In this method, the employee gets training on the job and at the work place it self the trainee learns while he/she is actually engaged in doing a job. This method is called as “learning by doing”. Several methods are used to provide on-the-job training. They are: • • • • Job rotation Coaching Job instruction Committee assignments
OFF THE JOB TRAINING This method is also called as “External Training Methods”. These methods are designed and intended to impart training by supplying required knowledge and skill to the employees away from the job and work place. This is an opportunity for freedom of expression for the trainees. Several methods are used to provide off-the-job training. They are: • • • • • Vestibule training Role – playing Lecture method Conference or Group Discussion method Programmed instruction
TYPES OF TRAINING Training is required for several purposes. Accordingly, training programme may be of the following types: o Orientation training o Job training o Safety training o Promotional training
o Refresher training o Remedial training o Individual training o Team training o Business training o Executive training
ASSESSMENT OF TRAINING NEEDS
Training activities must be related to the specific needs of the organization and the individual employees. A Training Programme should be launched only after the training needs are assessed clearly and specifically. The effectiveness of a Training Programme can be judged only with the help of training needs identified in advance. In order to identify the training needs, a gap between the existing and required levels of knowledge, skills, performance and aptitudes should be specific. The problem areas that can be resolved through training should also be identified. Training needs can be identified through the following types of analysis: ? ? ? ? Organizational Analysis Task or Role Analysis Job Analysis Man Analysis
Training programme, training methods and course content are to be planned on the basis of training needs. Training needs are those aspects necessary to perform the job in the organization in which employee lacks aptitude/attitude, knowledge and skill. The following methods are used to assess the Training Needs: i. ii. Organizational requirements/weaknesses Departmental requirements/weaknesses
iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii.
Job specification and Employee specification Identifying the specific problems Anticipating the future problems Management’s request Observation Interviews Group Conferences Questionnaire surveys Test Check lists Performance appraisal time
These are essential when technical are special information of complex nature is to be imparted. The lectures are supplemented with discussion film, case studies and roleplaying. DESIGNING A TRAINING PROGRAMME In order to achieve the training objectives, an appropriate Training Policy is necessary. A training policy represents the commitment of top management to employee training. It consists of rules and procedures concerning training. A Training Policy is required: a. To indicate the company’s intention to develop its employees. b. To guide the design and implementation of the Training Programmes. c. To identify the critical areas where training is to be given on priority basis. d. To provide appropriate opportunities to employees for their own betterment. EVALUATION OF THE TRAINING PROGRAMME The effectiveness of an investment in training in needed to be appraised as so much of money is invested in a Training Programme. Management needs to be reassured about the
effectiveness of a particular method, instruction, the relation between training cost, proved productivity, general efficiency and effectiveness of a course.
CONCEPT OF EXECUTIVE DEVELOPMENT INTRODUCTION Executives are the most valuable assets of any organization. The manager or executive is the dynamic life-giving element in an organization. The success and growth of an organization depends largely on the caliber and performance of its executives. Therefore, systematic and continues efforts are necessary to prepare executives who can successfully meet the challenges of the present and future. MEANING ‘Executive Development’ is also called as Management Development. It is a systematic approach of learning and growth by which managerial personnel gain and apply knowledge, skills, attitudes and insights to manage the work in their organizations effectively and efficiently. Executives learn conceptual knowledge, theoretical knowledge and managerial skills in an organized manner. It is largely self – development. OBJECTIVES OF EXECUTIVE DEVELOPMENT The Management Development programmes are organized with a view to achieving specific objectives. They are: ? To improve the performance of managers at all levels in their present jobs. ? To prepare managers for the higher jobs in future. ? To provide opportunities to executives to fulfill their career aspirations. ? To understand the problems of human relations and improve human relations skill. ? To stimulate creative thinking.
NEED OR IMPORTANCE OF EXECUTIVE DEVELOPMENT Executive Development is the programme by which executive’s capacities to achieve desired objectives are achieved. No organization can be successful in the long run without a planned approach to the development of its managerial persons. The following factors emphasize the need for Executive Development programmes:
? ? ? ? ?
Growth and size of the organizations. Technological and social changes. Recognition of social and public responsibilities. Growth of International Business. Re-awakening of ethical and moral values.
PRINCIPLES OF EXECUTIVE DEVELOPMENT ? The Top Management should accept responsibility for getting the policy of executive development. ? Executive Development programmes must be geared to the needs of the company and the individuals. ? Executive Development starts with the selection of the right man for the executive positions. ? A realistic timetable or time schedule for the development of executives should be prepared keeping in view the present and future needs of the organization. ? Learner’s participation is essential for development. It brings significant growth. ? Feedback should be made available to the learner so that steps can be taken to improve. ? An organizational climate conductive to executive development should be created.
TECHNIQUES OF EXECUTIVE DEVELOPMENT
There are mainly two types of techniques by which managers can acquire the knowledge, skills and attitudes, which make themselves competent managers. They are: 1. On-the-job development techniques 2. Off-the-job development techniques
ON THE JOB DEVELOPMENT In these techniques, the motivation to learn is high as training takes place in the real job situation. The important techniques are: • • • • • • Coaching Understudy Position rotation Project assignment Committee assignment Selective readings
OFF THE JOB DEVELOPMENT In these techniques, the executives have to learn in their work place or office and devote their entire time to the development objective. The important techniques are: • • • • • • • • • Case study method Incident method Role – playing Group discussions Management games Sensitivity training Simulation method Conference method Lecture method
CHAPTER-II METHODOLOGY
RESEARCH DESIGN
Data collected for the study has been divided into two parts. PRIMARY DATA
This data will be mainly gathered through various questionnaires being distributed by interacting with officials at different levels
SECONDARY DATA
This data will be collected through computer based reports from the published sources like books and periodicals and reports like Annual Training Reports as well as from VESTAS website. SAMPLING TECHNIQUE The data can also be obtained by applying sampling technique on the following segments in the areas of Training & Development mentioned below: ? ? ? ? Training needs Types of Training Effects of Training of employees Implementation of Training techniques into work procedures Workmen Employees o Technical o Non-technical ? Executives o Floor level o Middle level o Top level
SEGMENTS ? ?
LIMITATIONS OF THE STUDY
• • • Time is the big constraint Cooperation from employees is less Employees were not willing to fill questionnaire
SCHEME OF PRESENTATION:
The entire study is presented in 5 chapters: ? Chapter-I deals with CONCEPTUAL FRAME WORK ? Chapter-II gives a picture about the METHODOLOGY of the study. ? PROFILE OF THE ORGANIZATION is presented in chapter-III ? DATA ANALYSIS & INTERPRETATION of the study is presented in chapterIV ? Chapter-V deals with FINDINGS, SUGGESTIONS AND CONCLUSIONS of the study.
CHAPTER – III ORGANIZATION PROFILE
This chapter gives detailed information about the Industry Profile – Wind Industry, Organizational Profile – Vestas Wind Technology Private Limited and Performance Management System in Vestas Organization
INDUSTRY PROFILE – WIND INDUSTRY
Introduction
Wind power is produced by the conversion of wind energy into more useful forms, usually electricity, using wind turbines. In windmills (a much older technology), wind energy is used to turn mechanical machinery to do physical work, such as crushing grain or pumping water. Most modern wind power is generated in the form of electricity by converting the rotation of turbine blades into electrical current by means of an electrical generator. Wind power is used in large scale wind farms for national electrical grids as well as in small individual turbines for providing electricity to rural residences or grid-isolated locations Wind energy is plentiful, renewable, widely distributed, clean, and reduces toxic atmospheric and greenhouse gas emissions if used to replace fossil-fuel-derived
electricity. The intermittency of wind seldom creates problems when using wind power at low to moderate penetration levels At the end of 2006, world wide capacity of wind-powered generators was 74,223 MW, although it currently produces less than 1% of the world-wide electricity use, it accounts for approximately 20% of electricity use in Denmark, 9% in Spain and 7% in Germany. Globally, wind power generation is more than quadrupled between 2000 and 2006.
WIND SITE REQUIREMENTS ? Grid availability. ? Accessibility for commissioning. ? Strong terrain / soil for proper foundation / civil work ? Favorable environmental condition to prevent corrosion & not prone to cyclone.
Financial Benefits
• • • • • • Operation and maintenance costs are low. Zero input fuel cost. Pay back in shorter duration. Cost of generation is almost zero after pay back period. Zero import duty on certain parts. Tax holidays for newer power projects for 5 years.
WIND INDUSTRY IN INDIA Energy is a major input for overall socio-economic development. Use of fossil fuels is expected to fuel the economic development process of a majority of the world population during the next two decades. However, at some time during the period 2020-2050, fossil
fuels are likely to reach their maximum potential, and their price will become higher than other renewable energy options on account of increasingly constrained production and availability. Therefore, renewables are expected to play a key role in accelerating development and sustainable growth in the second half of the next century, accounting then to 50 to 60% of the total global energy supply. After the creation of a separate Ministry in 1992, special emphasis was given in the Eighth Plan to generation of grid quality power from renewables. The total installed capacity of power from renewables today stands at nearly 1350 MW with contribution from wind power of nearly 1000 MW. Wind power installations worldwide have crossed 8500 MW producing about 14 billion KWh of energy annually. A total capacity of about 5500 MW has been installed in Europe, 1700 MW in USA, and 992 MW in India. India is now the fourth largest wind power generator in the world after Germany, USA and Denmark. The State of the World 1998, a world-watch Institute Report on progress toward a sustainable society, released earlier this year, has noted that renewable energy production in the world is expanding rapidly. Wind generation is the fastest growing energy source in this decade and is expanding at 25% per year. The Report recognizes India as a new "Wind Superpower". With declining trend of cost and increase in the scale of wind turbine manufacturing, wind promises to become a major power source globally in the first few decades of the new millennium. MNES (Ministry of Non-conventional Energy Sources) are implementing the world's largest wind resource assessment program, which forms the backbone of their wind exploitation efforts. Preliminary estimates indicate a potential of about 20,000 MW. Scientific surveys are being intensified to identify specific viable and potential sites. A recent study undertaken to re-assess the potential, places it at about 45,000 MW. Assuming a grid penetration of 20%, a technical potential of about 9,000 MW is already available for exploitation in the potential States. 160 sites have so far been identified in
13 States. The States of Rajasthan and West Bengal have also shown wind potential recently. Today, we have a wind power installed capacity of 992 MW in the country, out of which about 940 MW is accounted for by commercial installations. About 3.5 billion units of electricity have been fed to the grid so far. A good local production base for wind turbines now exists in the country, with 15 manufacturing companies active in this sector. Today, the capital cost of wind power projects range between Rs. 4 to 5 crores per MW. This gives a levelised cost of energy generation in the range of Rs. 2.00 to Rs. 2.50 KWh, taking into consideration the fiscal benefits extended by the Government. The government has introduced a package of incentives which includes tax concessions such as 100% accelerated depreciation, tax holidays for power generation projects, soft loans, customs and excise duty relief’s, liberalized foreign investment procedures, etc.
ADVANTAGES OF WIND POWER
Wind turbines of all sizes have become a familiar sight around the world for a wide variety of reasons, including their economic, environmental, and social benefits. The potential for wind energy is immense, and experts suggest wind power can supply up to 20% of U.S. and world electricity. Nevertheless, the United States currently produces less than 1% of our electricity from wind.
1. ECONOMIC ADVANTAGES: • Revitalizes Rural Economies: Wind energy can diversify the economies of rural communities, adding to the tax base and providing new types of income. Wind turbines can add a new source of property taxes in rural areas that otherwise have a hard time attracting new industry. Each 100 MW of wind development in southwest Minnesota has generated about $1 million per year in property tax revenue and about $250,000 per year in direct lease payments to landowners. • Fewer subsidies: All energy systems are subsidized, and wind is no exception. However, wind receives considerably less than other forms of energy. In the 2005 energy bill, for example, of the $14.5 billion tax package, all types of renewable energy and energy efficiency combined received only $4.5 billion while fossil fuels received $5.6 billion. • Free Fuel: Unlike other forms of electrical generation where fuel is shipped to a processing plant, for wind energy the generating station, or wind turbine, is installed at the source of fuel. Wind is a native fuel that does not need to be mined or transported, taking two expensive aspects out of long-term energy costs. • Price Stability: The price of electricity from fossil fuels and nuclear power can fluctuate greatly due to highly variable mining and transportation costs. Wind can help buffer these costs because the price of fuel is fixed and free. • Promotes Cost-Effective Energy Production: The cost of wind-generated electricity has fallen from nearly 40¢ per kWh in the early 1980s to 2.5-5¢ per kWh today depending on wind speed and project size.
•
Creates Jobs: Wind energy projects create new short and long term jobs. Related employment ranges from meteorologists and surveyors to structural engineers, assembly workers, lawyers, bankers, and technicians. Wind energy creates 30% more jobs than a coal plant and 66% more than a nuclear power plant per unit of energy generated.
2. Social Advantages
•
National Security/Energy Independence: Wind turbines diversify our energy portfolio and reduce our dependence on foreign fossil fuel. Wind energy is homegrown electricity, and can help control spikes in fossil fuel cost. Distributed generation facilities, like many community wind projects, provide a safeguard against potential terrorist threats to power plants.
•
Supports Agriculture: It is not often a new crop emerges from thin air. Wind turbines can be installed amid cropland without interfering with people, livestock, or production.
•
Local Ownership: A significant contribution to the worldwide energy mix can be made by small clusters of turbines or even single turbines, operated by local landowners and small businesses. Developing local sources of electricity means
we import less fuel from other states, regions, and nations. It also means our energy dollars are plowed back into the local economy.
3. Environmental Advantages
•
Clean Water: Turbines produce no particulate emissions that contribute to mercury contamination in our lakes and streams. Wind energy also conserves water resources. For example, producing the same amount of electricity can take about 600 times more water with nuclear power than wind, and about 500 times more water with coal than wind.
•
Clean Air: Other sources of electricity produce harmful particulate emissions which contribute to global climate change and acid rain. Wind energy is pollution free.
•
Mining & Transportation: Harvesting the wind preserves our resources because there no need for destructive resource mining or fuel transportation to a processing facility.
•
Land Preservation: Wind farms are spaced over a large geographic area, but their actual "footprint" covers only a small portion of the land resulting in a minimum impact on crop production or livestock grazing. Large buildings cannot be built near the turbine, thus wind farms preserve open space.
DISADVANTAGES OF WIND POWER • A Variable Resource: Turbines produce electricity only when the wind blows. This variability is monitored and compensated in the same way utilities monitor demand changes each day, so there are not any actual changes in power supply for the end users. • Aesthetics: People have widely varied reactions to seeing wind turbines on the landscape. Some people see graceful symbols of economic development and environmental progress or sleek icons of modern technology. Others might see industrial encroachment in natural and rural landscapes. There are many ways to minimize the visual impact of wind turbines, including painting them a neutral color, arraying them in a visually pleasing manner, and designing each turbine uniformly.
•
Shadow Flicker: Shadow flicker occurs when the blades of the rotor cast a shadow. Research has shown the worst-case conditions would affect, by way of light alteration, neighboring residents a total of 100 minutes per year and only 20 minutes per year under normal circumstances.
•
Noise: Wind turbines are not silent. The sounds they produce are typically foreign to the rural settings where wind turbines are most often used, but as turbine technology has improved over the years, the amount of noise has fallen considerably. The sounds of wind turbines do not interfere with normal activities, such as quietly talking to one’s neighbor.
•
Biological Resource Impacts: As with any construction project or large structure, wind energy can impact plants and animals, depending on the sensitivity of the area. Direct fatalities from collisions or electrocutions and loss of wildlife habitat and natural vegetation are the primary wildlife concerns associated with wind energy. Extensive environmental impact analyses are integral of project development to mitigate impacts as much as possible.
•
Construction: Wind systems can involve the transportation of large and heavy equipment. This can cause a large temporarily disturbed area near the turbines. Erosion is another potential environmental problem that can stem from construction projects. The single most reliable technique for limiting erosion is to avoid grading roads and perform site reclamation post construction.
•
Radar: Radar interference by wind turbines is rare and easily avoided through technological improvements and proper sitting of turbines that are close to sensitive areas. A number of U.S. government installations have both wind turbines and functional radar, and the British military has a track record of successfully addressing these challenges
ORGANIZATION PROFILE:
Vestas is the world's leading producer of high-tech wind power systems. Vestas’ core business comprises the development, manufacture, sale, marketing and maintenance of wind power systems that use wind energy to generate electricity
VISION
To be the best and most trustworthy in the field of wind power systems – valued by customers, shareholders, employees and other stakeholders.
MISSION
To be the preferred partner of our customers by offering the most competitive and reliable wind turbines.
VALUES
? Ethics and Integrity: In the path of achieving the targets there will be no compromise on ethical business standards ? Customer First Vestas believe that they exist and grow only because of customers. They shall respond to customer needs on top priority. ? Quality Focus In every aspect of the business relationship Vestas believe that quality is excellent. ? Dependability Vestas always honor their commitments to their stakeholders ? Teamwork They shall foster teamwork and will not have functional barriers for achieving results. ? Policy Compliance Vestas shall always adhere to their corporate, company policies and guidelines. . These values are the foundation of Vestas’ attitudes and corporate culture.
VESTAS PROFILE
Vestas started to manufacture wind turbines in 1979 and has played an active role in this dynamic industry ever since. In 1987, Vestas began to concentrate exclusively on wind energy. Since then, the company has developed from a pioneer in the industry with a staff of around 60 to a global hi-tech market-leading group with more than 13,000 employees (March 2007). Over the years, Vestas has built up a worldwide sales and service network. As a result, working relationships with turbine owners do not end with delivery. On the contrary, the final delivery of a turbine marks the beginning of close collaboration over a period of at least 20 years. In short, Vestas cares for its turbines, no matter where in the world they may be. This ensures that Vestas remains a truly trustworthy partner
HISTORY
In the year 1878 H.S. Hansen, the blacksmith started a workshop and achieved success because of his impressive creativity & innovative drive. In the year 1945 H.S. Hansen’s son, Peder Hansen, joined forces with nine colleagues and established the company VEstjysk STalteknik A/S whose name is soon shortened to VESTAS. It started manufacturing house-hold appliances such as mixers and then moved to manufacturing tankers which is used for carrying oil and water in the year 1962. The business was growing good but in the mid 1970’s the oil crisis forced the company to look for alternative sources of income. This decision made to concentrate on wind turbines. In the year 1979 Vestas launched the first wind turbine. By 1985, Vestas employed around 800 people. In its successful group the company has seen a turnover rise by 35%. In 1997 increased competition and requirements for complete wind turbine solutions, kept pressure on wind turbine manufacturers and as a result Nordtank Energy Group (NEG) & Micon A/S decided to join forces to form NEG Micon A/S. With a global market share of 17%, the new company became the 2 nd largest player on the global market. Finally, in the year 2004, NEG Micon & Vestas received the final approval to
combine the two companies to create a new VESTAS – the undisputed world leader in the Wind Power Industry
VESTAS KEY FIGURES:
? The Vestas group in Total as on 31st March 2007: 13,018 Employees ? Production Facilities Denmark, Germany, India, Italy, Scotland, England, Spain, Sweden, Norway, Australia and China ?
MW sold worldwide in 2006:
Total** Vestas (incl. associated company) Vestas' market share 2006** ?
: : :
15,016 MW 4,239 MW 28.2 %
Accumulated installed MW worldwide as of December 2006
Total** Vestas (incl. associated company) Vestas' market share (accumulated) ** ?
Turnover in mEUR
: : :
74,306 MW 25,057 MW 33.7 %
Turnover 2001* Turnover 2002* Turnover 2003* Turnover 2004 Turnover 2005 Turnover 2006
: : : : : :
1,282 1,395 1,653 2,363 3,583 3,854
STAGES OF WIND PROJECT PLANNING Vestas' professional competencies cover every stage of wind project planning, installation and operation - from studies and simulations to service and maintenance. Studies and simulations: Vestas works with independent consultants on fundamental analyses of wind and site conditions. Analyses regarding load evaluations and modeling were done. The results help to ensure permits, satisfy local regulations and arrange funding. This also helps to conduct accurate simulations to optimize site design. Wind turbines: Choosing the right turbine is the key to a wind turbine project that provides a strong return on investment. Vestas has a broad range of turbine models, each targeting specific conditions and priorities. SCADA (Supervisory Control And Data Acquisition): A supervisory control and data acquisition system transforms discrete turbines into a single functioning entity. A wind power plant is a flexible program with a broad array of supervisory monitoring and control features that allow wind power plants to operate like a conventional power plant. From anywhere in the world it is possible to optimize production levels, monitor performance and generate management reports Project management: Vestas manages every aspect of a project from manufacture and procurement to the hiring and supervision of subcontractors, as well as the technical support throughout the construction process. Finally, systems are tested rigorously before commissioning, and thorough training is given to all operators and service personnel
Service and maintenance:
The delivery of a Vestas turbine marks the beginning of close collaboration over a period of atleast 20 years. Vestas global service network offers a variety of products which maintains a competitive edge by optimizing plant operations and minimizing downtime.
DEPARTMENTS:
The main departments of Vestas, India are explained below 1. PROJECT DEPARTMENT The primary responsibility of the Project department is to erect and install the Wind Turbine Generators at the location specified by the Marketing department with the assistance of Project Development after the components are delivered at the site by the Logistics. The function of Project department ends only when they hand over the commissioned turbine to the service department. In other words projects acts as the internal supplier for service department. 2. MARKETING DEPARTMENT THE HOLISTIC VIEW The Marketing department of Vestas is divided into sub-divisions, each with specific objectives, working towards a common goal. While Sales concentrates on bringing in the customers, CRM – Marketing functions towards catering their needs and so on. A brief view on various sub divisions of marketing is as follows: SALES / BUSINESS DEVELOPMENT
The Sales or the Business Development arm of the Vestas concentrates on bringing in Customers to the organization. In general, Sales are in terms of MW of power to the organizations or individuals according to their needs. The initial function of the sales department is Collecting database of all prospects and to find their needs. The needs of these prospective customers are analyzed. On acquiring an appointment, a Sales Presentation follows where the various features and benefits of the product were explained to the customer. The sales presentation is generally tuned according to the needs of the prospects and the duration of appointment In other words, Sales department identifies the suspects (by the database) and converts them to prospects (by convincing them about the product) and then to customers (by acquiring the order). CUSTOMER RELATIONSHIP MANAGEMENT
The primary responsibility of the CRM department is to have a constant relationship with the customers, understand their needs and act as a connecting bridge between them and organisation. The primary responsibility of CRM Marketing is to act as the Customer’s representative to the Organisation and vice-versa till the Wind Turbine Generator is commissioned. 3. FINANCE DEPARTMENT Finance Department is responsible in managing the finance in the Organization optimally and to raise funds as required.
Duties and functions:
?
Financial reports to VESTAS-monthly, half-yearly and annual actuals estimates and budgets. Statutory financial and legal returns. Analysis of project cost with estimates and sales calculation. Fund management to ensure financial are kept to d minimum. Coordination with bankers, auditors and lawyers. Overseeing the IT & HRD functions of vestas. Installaton of BOT project in vestas for Indian operations. Sales tax & service tax Physical cash count checks Chennai and Pondicherry. Passing of journal vouchers. Checking and passing project costing information. Miscellaneous
? ? ? ? ? ? ? ? ? ? ?
4. HUMAN RESOURCE DEPARTMENT Mission of HR department: To evolve HR practices that ensure competence and employee satisfaction.
Duties ? ? ? ? Salary administration Maintenance of statutory compliance Maintenance of employees details General administration
?
Maintenance of insurance for all company vehicles, and all other insurance like workmen compensation, GPA, health, travel shield policy, plant and machinery etc except insurance related to wind mills.
THE ROLES OF HR PERSONNEL ARE: To collaborate with the senior management to formulate effective human resource strategies, policies and programs to support the Organization’s goals and objectives, improve the effectiveness of management processes and address employees needs. To provide the functional/divisional heads with the information, tools, systems and support services that enable them to effectively manage and develop their human resources to achieve departmental goals To make available to employees information, tools, systems and support services that enable them to progress their careers in alignment with the goals of the Organization.
?
?
?
THE HR FUNCTION IS MANAGED THROUGH THE FOLLOWING KEY PROCESSES
HUMAN RESOURCE PLANNING SEPARATION RECRUITM ENT
HRD
PERFORMA NCE MANAGEM ENT INDUCTION
TRAINING & DEVELOPE MENT
TRAINING AND DEVELOPMENT IN VESTAS
The Performance Management System is an ongoing communication process that is undertaken in partnership between the Appraiser and the Appraisee. This partnership is undertaken with the primary objective of achieving the Organization goal, namely, Improved Performance and Results. This process also helps in providing clarity within the Organization of what is expected and how they are to be achieved.
The method adopted in Vestas wind Technology is Management By Objectives (MBO) The period of Appraisal is generally 1st June to 31st May, each year with one interim informal review in the month of December The 4 main activities of the Performance Management System in Vestas are: 1. PLANNING 2. MANAGING 3. REVIEWING 4. REWARDING 1. PLANNING:
Planning involves identification and agreement of the goals with the Appraiser, while understanding the resources, interdependency and constraints for the job. Along with the goals competencies, work habits and special Achievements are also identified. GOALS Goals or Targets represent what the appraisee is accountable for and in how much period they are expected to deliver.
GOAL SETTING: I. Identify major goals related to the job The Appraiser and the Appraisee should identify the key goals that are achievable. There should be focus on only 5-6 goals for a year. Having more number of goals will divert the attention from the major priorities of the job.
Types of Goals a) Operational Goals: These relate to outputs expected of routine, activity based Example: Production Target for a Month/Quarter/Year b) Project/ Assignment Goals: These relate to specific short term or long term initiatives as part of the responsibilities of the job Example: Connecting all the Wind Mills by the end of 2006 c) Self Development Goals: These relate to individual development, where one can earmark the areas of development, either in technical or soft skills Example: Acquiring knowledge of Scientific Modeling of Sites by December 2006 d) People Goals: These relate to interpersonal relationship, inter department interface, team work etc. Example: Improving Customer Satisfaction Index by 20% e) Quality Goals: These are related to introducing processes or following the defined processes and systems in the area of work. Example: Following the processes and ensuring there are no “non conformance reports” during quality audits
II. Writing the goals The goals that are set should have “SMART” characteristics Specific Measurable Agreeable Realistic Time-Bound
? ? ? ? ?
COMPETENCIES A Competency is knowledge, attribute or underlying characteristic of a person that enables him to deliver superior performance in a given job or role or situation. Competencies represent “HOW” a particular job needs to be done. Example: When a Marketing Department Employee is given a target of increasing the sales volume ( 500MW by 2007) then the competency which is seen in him during the Appraisal period is whether he is RESULT ORIENTED or not. WORKHABITS In few kind of jobs work habits play a major role. They should be considered during the Appraisal Period to improve his performance and to meet the Organizations Objectives.
They include: Punctuality Uninformed and Frequent Absenteeism Clean and neat performance Politeness Flexibility in accepting work from people Speed in completion of job
? ? ? ? ? ?
SPECIAL ACHIEVEMENTS Special Achievements represents those incidents or occasions where an employee contributes in a significant way, far beyond the call of duty. These are special and are not pre-planned.
2. MANAGING: This is the critical part in the entire Performance Management Process. In this stage Appraiser explains various goals, their importance and the necessity for an employee to meet/exceed pre-agreed levels of performance. Managing is the process where an employee is guided and encouraged to improve performance and achieve targets. There should be openness to give/ receive feedback, to advice, counsel, explanations etc 3. REVIEWING: Reviews are structured opportunities to provide performance feedback to the Appraisee and set the goals for the upcoming period. These are conducted periodically as per fixed schedule.
This process is effective only if the Appraisee get regular feedback from the Appraiser about the quality of the work. 4. REWARDING: Rewarding to the employees is done based on the Performance Appraisal Rating given to the employees. There will be no automatic increase in compensation and promotions as the employees gain experience. All the increments or promotions are purely based on the performance rating of the employees, Companies Performance criteria, Market Situations and some other policies EVALUATION OF THE EMPLOYEES PERFORMANCE In the process of evaluation of the employee performance, employees are allowed to rate themselves on a scale of 1-4 (1 being the least and 4 being the highest), and then during the Appraisal Interview, the employee Appraiser gives the ratings on the scale of 1-4 based on his performance in achieving Goals, Competencies, Work Habits and Special Achievements. The rating given by the Appraiser is considered the evaluation purpose. Based on the ratings given to them on Goals, Competencies, Work Habits and Special Achievements and the weightages given to Goals, Competencies, Work Habits and Special Achievements, their composite rating(score) is calculated. This score is considered as the final rating.
WEIGHTAGE DISTRIBUTION
Weightage of Goals Weightage of Work habits
: :
60% 30% 10%
Weightage of Competencies :
A discretionary weightage of 10% on special achievements can also be given Employee’s performance is rated on a scale of 1 to 4 based on the ratings given to them by their Appraiser where the representations of the scores are as follows: 1. Poor 2. Average 3. Good 4. Outstanding. RESULTS OF RATING According to this rating, and the deviations in the employee’s current salary and the market value, his Increments/ Promotions are decided. If he is found that he is capable person of handling more duties then he is given more responsibilities
?
?
?
.If the employee’s rating is found average, then the weakness of the employees are identified and accordingly training is given to the employees If the employee’s performance is found to be poor then he may be removed from the job
?
Along with this performance appraisal form the seniors are suggested which areas are in strength these people as well as weaknesses these suggestions are taken into consider according that training is conducted to the members in the organization. In this way vestas is started the training and development of the employees.
CHAPTER – 4
___________________________________
Data Analysis and Interpretation
1.
Is Training and Development given adequate importance in your
organization? S.NO 1 2 3 4 OPINION To a great extent To a reasonable extent To a small extent Not at all NO. OF RESPONDENTS 38 44 18 __ 100 % OF RESPONSE 38% 44% 18% __ 100%
TOTAL
45 40 35 30 25 20 15 10 5 0 No. of respondents
To a great extent To a reasonable extent To a small extent Not at all
INTERPRETATION It was found through the response of a major number of employees that, Training was given a reasonable importance in the organization followed by many to a great extent and some to a small extent.
2. Have you experienced any improvement in your self-confidence levels after attending the Training Programmes? S.NO 1 2 3 4 OPINION To a great extent To a reasonable extent To a small extent Not at all TOTAL NO. OF RESPONDENTS 30 48 14 08 100 % OF RESPONSE 30% 48% 14% 08% 100%
50 45 40 35 30 25 20 15 10 5 0 No. of respondents
To a great extent To a reasonable extent To a small extent Not at all
INTERPRETATION It was found from the response that major number of respondents experienced improvement in their self-confidence levels to a reasonable extent followed by many to a great extent and some to a small extent. It was even found that a little number of respondents did not find any improvement in their self-confidence levels.
3. Do you think the Training Programmes are relevant to your work environment? S.NO 1 2 3 4 OPINION To a great extent To a reasonable extent To a small extent Not at all TOTAL NO. OF RESPONDENTS 20 64 08 08 100 % OF RESPONSE 20% 64% 08% 08% 100%
70 60 50 40 30 20 10 0 No. of respondents To a great extent To a reasonable extent To a small extent Not at all
INTERPRETATION It was found from the response that major number of respondents felt that the Training Programmes were relevant to the work environment to a reasonable extent followed by some to a great extent and very little respondents to a small extent and some even felt that the Training Programmes were not at all relevant to the work environment.
4. Were you given prior idea about the training topic when you were nominated for a Training Programme? S.NO 1 2 3 OPINION Yes No Not aware TOTAL NO. OF RESPONDENTS 58 40 02 100 % OF RESPONSE 58% 40% 02% 100%
60 50 40 30 20 10 0 No. of respondents Yes No Not aware
INTREPRETATION It was found that from the response that major number of respondents were given prior idea about the training topic while some responded that they were not given
prior idea the training topic when they were nominated for a Training Programme and a very little percentage of respondents said that they were not aware of it.
5. What type of Training Programmes you basically attend? S.NO 1 2 3 4 OPINION Behavioral Environmental Functional All four areas NO. OF RESPONDENTS 40 06 20 44 % OF RESPONSE 36.36% 05.45% 18.18% 40%
45 40 35 30 25 20 15 10 5 0
Behavioral Environm ental Functional All
No. of respondents
INTERPRETATION It was found that many respondents attended for the Training Programmes in all attended for the Training Programmes in two areas also. the four areas followed by Behavioral, Functional and Environmental. Some employees
6. Are there any changes occurred in the pattern of Training Programmes conducted to you in past five years? S.NO 1 2 3 4 5 OPINION To a great extent To a reasonable extent To a small extent Not at all Not Applicable TOTAL NO. OF RESPONDENTS 16 42 20 10 12 100 % OF RESPONSE 16% 42% 20% 10% 12% 100%
45 40 35 30 25 20 15 10 5 0
To a great extent To a reasonable extent To a small extent Not at all Not applicable
No. of respondents
INTERPRETATION It was found from a major number of respondents that changes occurred in the pattern of Training Programmes conducted in past 5 years to a reasonable extent followed by some to a small extent and some to a great extent. There are less number of respondents who said that there were no changes in the Training Programmes from long time. Some employees did not respond, as their service in the organization is only a few months.
7. How is the feedback collected? S.NO 1 2 3 OPINION Questionnaire Interviews Tests TOTAL NO. OF RESPONDENTS 100 __ % OF RESPONSES 100% __ 100%
100 90 80 70 60 50 40 30 20 10 0
Questionnaire Interviews Tests No. of respondents
INTERPRETATION It was found from the respondents that feedback is collected through Questionnaires to a great extent followed by Tests to a small extent. Some said that feedback is collected both by Questionnaires and Tests, but no one responded to Interview feedback. So, feedback is not collected through interviews.
8. Is your feedback considered for further Training Programmes organized?
S.NO
1 2 3
OPINION
Yes No Not Aware
NO. OF RESPONDENTS 40 20 40 100
% OF RESPONSES 40% 20% 40% 100%
TOTAL
40 35 30 25 20 15 10 5 0 No. of respondents Yes No Not aware
INTERPRETATION
It was found that many number of respondents felt that their feedback is considered for further Training Programmes while some felt that their feedback is not taken into consideration. The remaining employees were not aware or not able to say whether their feedback is taken into consideration or not.
9. When did you recently attend a Training Programme?
S.NO
1 2 3 4
OPINION 1-3 months back 3-6 months back 6-9 months back 9-12 months back
NO. OF RESPONDENTS 12 28 16 44 100
% OF RESPONSE 12% 28% 16% 44% 100%
TOTAL
45 40 35 30 25 20 15 10 5 0 No. of respondents
1-3 mths back 3-6 mths back 6-9 mths back 9-12 mths back
INTERPRETATION It was found from the respondents that most of them have attended the Training Programmes 9-12 months back followed by 3-6 months, 6-9 months and lastly 1-3 months back. Some employees even did not attend a Training Programme from past two years.
10. Is the Training Policy adopted by your organization well designed and shared? S.NO 1 2 3 4 OPINION Agree Disagree Strongly agree Strongly disagree NO. OF RESPONDENTS 68 18 04 10 100 % OF RESPONSE 68% 18% 04% 10% 100%
TOTAL
70 60 50 40 30 20 10 No. of respondents 0 Agree Disagree Strongly agree Strongly disagree
INTERPRETATION It was found from the response that most of the respondents agreed and strongly agreed with the Training Policy adopted by the organization. It was even found that some of the respondents responded that they strongly disagree with the organization’s Training Policy.
11. Is Training and Development a motivating factor in your organization? S.NO 1 2 3 4 OPINION To a great extent To a reasonable extent To a small extent Not at all TOTAL NO. OF RESPONDENTS 12 58 24 06 100 % OF RESPONSE 12% 58% 24% 06% 100%
60 50 40 30 20 10 No. of respondents 0 To a great extent To a reasonable extent To a small extent Not at all
INTERPRETATION It was found that major number of respondents felt that Training and Development is a motivating factor in Vestas to a reasonable extent, followed by many to a small extent, some to a great extent. But a little number felt that Training and Development is not a motivating factor in the organization.
12. Were you satisfied with the Training Programmes you have attended?
S.NO 1 2 3 4
OPINION To a great extent To a reasonable extent To a small extent Not at all
NO. OF RESPONDENTS 22 64 14 __ 100
% OF RESPONSE 22% 64% 14% __ 100%
TOTAL
70 60 50 40 30 20 10 0 No. of respondents To a great extent To a reasonable extent To a small extent Not at all
INTREPRETATION It was found from the respondents that major numbers of employees were satisfied with the Training Programmes followed by some to a great extent and a little number to a small extent. But no one was dissatisfied with the Training Programmes of VESTAS.
13. Your overall rating of the Training Programmes conducted by VESTAS S.NO 1 2 3 4 OPINION Excellent Good Satisfactory Poor TOTAL NO. OF RESPONDENTS 22 46 26 06 100 % OF RESPONSE 22% 46% 26% 06% 100%
50 45 40 35 30 25 20 15 10 5 0
Excellent Good Satisfactory Poor
No. of respondents
INTERPRETATION It was found from the response that major number of respondents felt, the overall rating to the Training Programmes is good followed by some to a satisfactory level. Some felt that the Training Programmes of VESTAS were excellent while the remaining felt that the Training Programmes were poor.
14. How is the work environment in VESTAS? S.NO 1 2 3 4 OPINION Excellent Good Satisfactory Poor TOTAL NO. OF RESPONDENTS 18 52 24 06 100 % OF RESPONSE 18% 52% 24% 06% 100%
60 50 40 30 20 10 0 No. of respondents Excellent Good Satisfactory Poor
INTREPRETATION It was found from the employees that the work environment in VESTAS is good to a great extent followed by some at a satisfactory level. Some felt that the work environment is excellent while the remaining felt that the work environment is poor.
Effectiveness of Training Programmes in the organization
After careful observation, the effectiveness of training programmes is found through the employees S.NO 1 2 3 4 OPINION EXCELLENT VERY GOOD SATISFACTORY POOR % OF RESPONSE 20% 67% 11% 2%
% OF RESPONSE
EXCELLENT VERY GOOD SATISFACTORY POOR
CHAPTER-V
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
• It is found that 87% of the total respondents feel that their supervisor strictly following the standard format of performance review and 13% of the respondents feel that the standard format is not being followed • The time spent by the supervisor for the discussion on the performance review is 10-20 minutes for 35% of the associates; no time was spend by the supervisor for 5% of associates and 20 minutes and above time was spent by the supervisor for 60% of the associates.
•
There is a feeling that 55% of the total respondents agree that their supervisor takes the performance appraisal process seriously, 35% of the respondents strongly agree, 5% disagree and another 5% of the respondents strongly disagree
•
53% of the total respondents strongly agree that they can share thoughts and feelings freely with the supervisor and 47% of the respondents just agree
•
It is evident that 60% of the respondents agree that their discussions with their supervisor are fruitful, 30% agree and 10% of the respondents disagree with this
•
I found that 87% of the total respondents agree they and their supervisor mutually arrive a t final rating and 13% of the respondents do not agree with this
. • It is found that 88% of the total respondents agree that they get guidance in understanding the process of performance review from their supervisor and only 12% disagree with this • It is learned that 63% of the total respondents believe that their goals for the year 2006 are SMART and 37% believe that their goals are not SMART • The survey reveals that only 55% of the associates have completed their mid-year review. 45% of the associates have not yet completed their mid-year review; this is due to the reason that their supervisors could not spend time for review. • It denotes that 60% of the total respondents taken as 100%, 75% of them say that their supervisors identify training needs after the mid-year review and 25% disagree with this.
•
It shows that 54% of the respondents say that their mid-year appraisal has helped them to do their job better, 33% say that it has greatly helped them and 13% disagree with this statement.
SUGGESTIONS
• To appraise the employees twice in a year so that the employees performance will become better in the coming year, instead of one year. • Data of the appraisal should be written immediately after completion of the appraisal process. Then their will be no loss of data about the employees performance and analysis can be done properly
•
Other attributes must be identified to measure the performance such as interpersonal skill, avoiding conflict, situational behavior can be rated.
•
Reward and performance should be linked. The person getting highest rating should be given reward as an incentive package
•
Proper counseling and support should be given by the management to improve the performance of the employees
•
Identify proper training needs for those who have undergone mid-year review. Make sure that the mid-year appraisal must be useful to them in achieving the objectives of the Organization
•
After the mid-year review the training needs that are identified should be completed within that year. Then the associates will satisfy about their
performance of the job. These training programs should be organized during unseasons • An influential person and who has popularity among employees should provide awareness of the system and motivate employees to participate in the meetings • The incentives provided for good performance must be a motivating factor for a better performance • There is a feeling that this system is not fully utilized to recognize the performance of the associates. So, top management should create seriousness towards the performance management system • The performance management system that is being follows is very well designed. But there should be no delay in its implementation practically • The parameters on which the performance is assured should be more logical and analytical.
CONCLUSION
From the opinions, views and response of the employees on this study, I conclude by saying that most of the employees of VESTAS WIND TECHNOLOGY PRIVATE LIMITED hold a positive view on the effectiveness of the performance management system in the Organization.
In today’s competitive era, Organizations need to have performing people to reach its appropriate goal Vestas is the best performing Organization globally in the wind industry. There is consistency in rating the performance of the individuals. Employees are co-operative in improving the productivity. Skills of the employees are being well recognized and are given a chance to prove their work. This motivates them to work for the Organization to achieve the target set before them Hence I conclude with a positive note on the study by saying that the Organization with the implementation of suggestions and by developing a multi prone strategy covering all the aspects of performance management system would become a “benchmark” for the rest of the firms in this field.
BIBLIOGRAPHY
___________________________________
BIBLIOGRAPHY
BOOK
a. C.B.MAMORIA
AUTHOR
Personnel Management
b. L.M.PRASAD
Principles and Practice of Management
c. P.SUBBA RAO
Essentials of Human
Resource Management &
Industrial Relations d. C.R.KOTHARI Research Methodology
WEBSITE: www.hindustanpetroleum.com www.hindpetro.com Hptrainingportal
ANNEXURE
___________________________________
QUESTIONNAIRE
Survey on Training and Development in HPCL, Visakhapatnam (As a part of our project work)
NAME: DESIGNATION: DEPARTMENT:
1) Is Training and Development given adequate importance in your organization? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 2) Have you experienced any improvement in your self-confidence levels after attending the Training Programmes? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 3) Do you think the Training Programmes are relevant to your work environment? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 4) Were you given prior idea about your training topic when you were nominated for a Training Programme? a) Yes b) No c) Not aware 5) What type of Training Programmes you basically attend? a) Behavioral b) Environmental c) Functional d) All four areas
6) Are there any changes occurred in the pattern of Training Programmes conducted to you in past five years? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 7) How is the feedback collected? a) Questionnaire b) Interviews c) Tests 8) Is your feedback considered for further Training Programmes organized? a) Yes b) No c) Not aware 9) When did you recently attend a Training Programme? a) 1-3 months back b) 3-6 months back c) 6-9 months back d) 9-12 months back 10)Is the Training Policy adopted by your organization well designed and shared? a) Agree b) Disagree c) Strongly agree d) Strongly disagree 11)Is Training and Development, a motivating factor in your organization? a) To a great extent b) To a reasonable extent
c) To a small extent d) Not at all 12)Were you satisfied with the Training Programmes you have attended? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 13)Your overall rating of the Training Programmes conducted byVESTAS. a) Excellent b) Good c) Satisfactory d) Poor 14)How is the work environment in VESTAS? a) Excellent b) Good c) Satisfactory d) Poor 15)Your suggestions regarding the Training System in VESTAS (if any)
THANK YOU
doc_305897413.doc
CONTENTS
Chapter No. I II III IV V
Title Conceptual framework Methodology Organization Profile Data Analysis and Interpretation Findings, Suggestions and Conclusion Bibliography Annexure
Page No. 06-16 17-19 20-45 46-61 62-67 68 69-73
CHAPTER-I
CONCEPTUAL FRAMEWORK
\
TRAINING AND DEVELOPMENT
Employee Training is distinct from management or Executive Development. While the former refers, training is given to employees in areas of operations, techniques and allied areas, while the latter refers to developing an employee in areas of important techniques of the Management Administration, Organization and allied areas.
Training means to continuously nurture the employees or workers towards better performance in a systematic way. This can be either at the work spot or at the workshops. This is mainly to improve the technical skills of the employees or workers. Development means bringing out the actual potentialities and thus willing to high motivation and commitment standards towards work. This will be generally with regard to improvement in the behavioral skills.
CONCEPT OF TRAINING
INTRODUCTION
Every organization needs to have well-trained and experienced people to perform the activities that have to be done. So, every modern Management has to develop Human Resources Development. In a rapidly changing society, employee training is not only an activity that an organization must arrange if it is to maintain a viable and knowledgeable workforce. Training is thus a practical and vital necessity.
MEANING Training is the process of increasing the knowledge and skill of an employee for doing a particular job. Training is short-term educational process and utilizing a systematic and organized procedure by which employees learn knowledge and skills for a definite purpose. Training improves, moulds, changes the employee’s knowledge, skills, behavior, aptitude and attitude towards the requirement of the job and organization. OBJECTIVES OF TRAINING ? Training is mainly job-oriented. ? To impart the basic knowledge and skill to the new entrants and enable them to perform their jobs well.
? To teach the employees the new techniques and ways of performing the jobs and operations.
? To prepare the employees for higher level task and build up a second line of
competent officers.
NEED FOR TRAINING
Training is considered as a key input for developing manpower in an organization so as to improve their job performance. The need for training arises on account of the following reasons:
?
To match the employee specifications with the job requirements and organizational needs. Organizational viability and transformation process. Latest technological advances should be adopted computerization and automation. i.e., mechanization,
? ?
?
Internal mobility from one job to another due to promotion and transfer to employees.
IMPORTANCE OF TRAINING Training is an important process of imparting knowledge to the employees. It helps in improving productive and behavioral pattern. Training is advantageous not only to the organization but also to the employees. Training is vital and necessary activity in all organizations. It plays a large part in determining the effectiveness and efficiency of the establishment. - DALE.S.BEACH BENEFITS OF TRAINING PROGRAMME A well-planned and executed Training Programme can provide the following developments: ? Higher productivity and profitability. ? Better quality of work and best work methods. ? Less wastage of time during the learning period. ? Improves high morale among the employees
? Personal growth of individuals. ? Low accident rates. ? Improves employer – employee relations.
PRINCIPLES OF TRAINING
The principles, which have been evolved, can be followed as guidelines to trainees. Clear objectives about the Training Programme are: ? Training policy for designing and implementing the training programme. ? Acquisition of knowledge and new skills through motivation. ? Reinforcement to trainees by means of awards and punishments. ? Organized material should be properly prepared and provided to the trainees. ? Learning periods has to be fixed as it takes time to learn. ? Preparing he instructor who is both good at subject and job. ? Feedback regarding the performance of the trainees in the jobs. ? Practicing the skills taught by the trainee. ? Appropriate techniques related to the needs and objectives of the organization. METHODS OF TRAINING Training is essential for the smooth economic timely and efficient service of the organization. Training methods or techniques represents the medium of imparting skills and knowledge to the employees. There are two methods of training: 1. On-the-job training methods 2. Off-the-job training methods
ON THE JOB TRAINING
This method is also called as “Internal Training Method”. This is suitable for all levels of employees – workers, supervisors and executives. In this method, the employee gets training on the job and at the work place it self the trainee learns while he/she is actually engaged in doing a job. This method is called as “learning by doing”. Several methods are used to provide on-the-job training. They are: • • • • Job rotation Coaching Job instruction Committee assignments
OFF THE JOB TRAINING This method is also called as “External Training Methods”. These methods are designed and intended to impart training by supplying required knowledge and skill to the employees away from the job and work place. This is an opportunity for freedom of expression for the trainees. Several methods are used to provide off-the-job training. They are: • • • • • Vestibule training Role – playing Lecture method Conference or Group Discussion method Programmed instruction
TYPES OF TRAINING Training is required for several purposes. Accordingly, training programme may be of the following types: o Orientation training o Job training o Safety training o Promotional training
o Refresher training o Remedial training o Individual training o Team training o Business training o Executive training
ASSESSMENT OF TRAINING NEEDS
Training activities must be related to the specific needs of the organization and the individual employees. A Training Programme should be launched only after the training needs are assessed clearly and specifically. The effectiveness of a Training Programme can be judged only with the help of training needs identified in advance. In order to identify the training needs, a gap between the existing and required levels of knowledge, skills, performance and aptitudes should be specific. The problem areas that can be resolved through training should also be identified. Training needs can be identified through the following types of analysis: ? ? ? ? Organizational Analysis Task or Role Analysis Job Analysis Man Analysis
Training programme, training methods and course content are to be planned on the basis of training needs. Training needs are those aspects necessary to perform the job in the organization in which employee lacks aptitude/attitude, knowledge and skill. The following methods are used to assess the Training Needs: i. ii. Organizational requirements/weaknesses Departmental requirements/weaknesses
iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii.
Job specification and Employee specification Identifying the specific problems Anticipating the future problems Management’s request Observation Interviews Group Conferences Questionnaire surveys Test Check lists Performance appraisal time
These are essential when technical are special information of complex nature is to be imparted. The lectures are supplemented with discussion film, case studies and roleplaying. DESIGNING A TRAINING PROGRAMME In order to achieve the training objectives, an appropriate Training Policy is necessary. A training policy represents the commitment of top management to employee training. It consists of rules and procedures concerning training. A Training Policy is required: a. To indicate the company’s intention to develop its employees. b. To guide the design and implementation of the Training Programmes. c. To identify the critical areas where training is to be given on priority basis. d. To provide appropriate opportunities to employees for their own betterment. EVALUATION OF THE TRAINING PROGRAMME The effectiveness of an investment in training in needed to be appraised as so much of money is invested in a Training Programme. Management needs to be reassured about the
effectiveness of a particular method, instruction, the relation between training cost, proved productivity, general efficiency and effectiveness of a course.
CONCEPT OF EXECUTIVE DEVELOPMENT INTRODUCTION Executives are the most valuable assets of any organization. The manager or executive is the dynamic life-giving element in an organization. The success and growth of an organization depends largely on the caliber and performance of its executives. Therefore, systematic and continues efforts are necessary to prepare executives who can successfully meet the challenges of the present and future. MEANING ‘Executive Development’ is also called as Management Development. It is a systematic approach of learning and growth by which managerial personnel gain and apply knowledge, skills, attitudes and insights to manage the work in their organizations effectively and efficiently. Executives learn conceptual knowledge, theoretical knowledge and managerial skills in an organized manner. It is largely self – development. OBJECTIVES OF EXECUTIVE DEVELOPMENT The Management Development programmes are organized with a view to achieving specific objectives. They are: ? To improve the performance of managers at all levels in their present jobs. ? To prepare managers for the higher jobs in future. ? To provide opportunities to executives to fulfill their career aspirations. ? To understand the problems of human relations and improve human relations skill. ? To stimulate creative thinking.
NEED OR IMPORTANCE OF EXECUTIVE DEVELOPMENT Executive Development is the programme by which executive’s capacities to achieve desired objectives are achieved. No organization can be successful in the long run without a planned approach to the development of its managerial persons. The following factors emphasize the need for Executive Development programmes:
? ? ? ? ?
Growth and size of the organizations. Technological and social changes. Recognition of social and public responsibilities. Growth of International Business. Re-awakening of ethical and moral values.
PRINCIPLES OF EXECUTIVE DEVELOPMENT ? The Top Management should accept responsibility for getting the policy of executive development. ? Executive Development programmes must be geared to the needs of the company and the individuals. ? Executive Development starts with the selection of the right man for the executive positions. ? A realistic timetable or time schedule for the development of executives should be prepared keeping in view the present and future needs of the organization. ? Learner’s participation is essential for development. It brings significant growth. ? Feedback should be made available to the learner so that steps can be taken to improve. ? An organizational climate conductive to executive development should be created.
TECHNIQUES OF EXECUTIVE DEVELOPMENT
There are mainly two types of techniques by which managers can acquire the knowledge, skills and attitudes, which make themselves competent managers. They are: 1. On-the-job development techniques 2. Off-the-job development techniques
ON THE JOB DEVELOPMENT In these techniques, the motivation to learn is high as training takes place in the real job situation. The important techniques are: • • • • • • Coaching Understudy Position rotation Project assignment Committee assignment Selective readings
OFF THE JOB DEVELOPMENT In these techniques, the executives have to learn in their work place or office and devote their entire time to the development objective. The important techniques are: • • • • • • • • • Case study method Incident method Role – playing Group discussions Management games Sensitivity training Simulation method Conference method Lecture method
CHAPTER-II METHODOLOGY
RESEARCH DESIGN
Data collected for the study has been divided into two parts. PRIMARY DATA
This data will be mainly gathered through various questionnaires being distributed by interacting with officials at different levels
SECONDARY DATA
This data will be collected through computer based reports from the published sources like books and periodicals and reports like Annual Training Reports as well as from VESTAS website. SAMPLING TECHNIQUE The data can also be obtained by applying sampling technique on the following segments in the areas of Training & Development mentioned below: ? ? ? ? Training needs Types of Training Effects of Training of employees Implementation of Training techniques into work procedures Workmen Employees o Technical o Non-technical ? Executives o Floor level o Middle level o Top level
SEGMENTS ? ?
LIMITATIONS OF THE STUDY
• • • Time is the big constraint Cooperation from employees is less Employees were not willing to fill questionnaire
SCHEME OF PRESENTATION:
The entire study is presented in 5 chapters: ? Chapter-I deals with CONCEPTUAL FRAME WORK ? Chapter-II gives a picture about the METHODOLOGY of the study. ? PROFILE OF THE ORGANIZATION is presented in chapter-III ? DATA ANALYSIS & INTERPRETATION of the study is presented in chapterIV ? Chapter-V deals with FINDINGS, SUGGESTIONS AND CONCLUSIONS of the study.
CHAPTER – III ORGANIZATION PROFILE
This chapter gives detailed information about the Industry Profile – Wind Industry, Organizational Profile – Vestas Wind Technology Private Limited and Performance Management System in Vestas Organization
INDUSTRY PROFILE – WIND INDUSTRY
Introduction
Wind power is produced by the conversion of wind energy into more useful forms, usually electricity, using wind turbines. In windmills (a much older technology), wind energy is used to turn mechanical machinery to do physical work, such as crushing grain or pumping water. Most modern wind power is generated in the form of electricity by converting the rotation of turbine blades into electrical current by means of an electrical generator. Wind power is used in large scale wind farms for national electrical grids as well as in small individual turbines for providing electricity to rural residences or grid-isolated locations Wind energy is plentiful, renewable, widely distributed, clean, and reduces toxic atmospheric and greenhouse gas emissions if used to replace fossil-fuel-derived
electricity. The intermittency of wind seldom creates problems when using wind power at low to moderate penetration levels At the end of 2006, world wide capacity of wind-powered generators was 74,223 MW, although it currently produces less than 1% of the world-wide electricity use, it accounts for approximately 20% of electricity use in Denmark, 9% in Spain and 7% in Germany. Globally, wind power generation is more than quadrupled between 2000 and 2006.
WIND SITE REQUIREMENTS ? Grid availability. ? Accessibility for commissioning. ? Strong terrain / soil for proper foundation / civil work ? Favorable environmental condition to prevent corrosion & not prone to cyclone.
Financial Benefits
• • • • • • Operation and maintenance costs are low. Zero input fuel cost. Pay back in shorter duration. Cost of generation is almost zero after pay back period. Zero import duty on certain parts. Tax holidays for newer power projects for 5 years.
WIND INDUSTRY IN INDIA Energy is a major input for overall socio-economic development. Use of fossil fuels is expected to fuel the economic development process of a majority of the world population during the next two decades. However, at some time during the period 2020-2050, fossil
fuels are likely to reach their maximum potential, and their price will become higher than other renewable energy options on account of increasingly constrained production and availability. Therefore, renewables are expected to play a key role in accelerating development and sustainable growth in the second half of the next century, accounting then to 50 to 60% of the total global energy supply. After the creation of a separate Ministry in 1992, special emphasis was given in the Eighth Plan to generation of grid quality power from renewables. The total installed capacity of power from renewables today stands at nearly 1350 MW with contribution from wind power of nearly 1000 MW. Wind power installations worldwide have crossed 8500 MW producing about 14 billion KWh of energy annually. A total capacity of about 5500 MW has been installed in Europe, 1700 MW in USA, and 992 MW in India. India is now the fourth largest wind power generator in the world after Germany, USA and Denmark. The State of the World 1998, a world-watch Institute Report on progress toward a sustainable society, released earlier this year, has noted that renewable energy production in the world is expanding rapidly. Wind generation is the fastest growing energy source in this decade and is expanding at 25% per year. The Report recognizes India as a new "Wind Superpower". With declining trend of cost and increase in the scale of wind turbine manufacturing, wind promises to become a major power source globally in the first few decades of the new millennium. MNES (Ministry of Non-conventional Energy Sources) are implementing the world's largest wind resource assessment program, which forms the backbone of their wind exploitation efforts. Preliminary estimates indicate a potential of about 20,000 MW. Scientific surveys are being intensified to identify specific viable and potential sites. A recent study undertaken to re-assess the potential, places it at about 45,000 MW. Assuming a grid penetration of 20%, a technical potential of about 9,000 MW is already available for exploitation in the potential States. 160 sites have so far been identified in
13 States. The States of Rajasthan and West Bengal have also shown wind potential recently. Today, we have a wind power installed capacity of 992 MW in the country, out of which about 940 MW is accounted for by commercial installations. About 3.5 billion units of electricity have been fed to the grid so far. A good local production base for wind turbines now exists in the country, with 15 manufacturing companies active in this sector. Today, the capital cost of wind power projects range between Rs. 4 to 5 crores per MW. This gives a levelised cost of energy generation in the range of Rs. 2.00 to Rs. 2.50 KWh, taking into consideration the fiscal benefits extended by the Government. The government has introduced a package of incentives which includes tax concessions such as 100% accelerated depreciation, tax holidays for power generation projects, soft loans, customs and excise duty relief’s, liberalized foreign investment procedures, etc.
ADVANTAGES OF WIND POWER
Wind turbines of all sizes have become a familiar sight around the world for a wide variety of reasons, including their economic, environmental, and social benefits. The potential for wind energy is immense, and experts suggest wind power can supply up to 20% of U.S. and world electricity. Nevertheless, the United States currently produces less than 1% of our electricity from wind.
1. ECONOMIC ADVANTAGES: • Revitalizes Rural Economies: Wind energy can diversify the economies of rural communities, adding to the tax base and providing new types of income. Wind turbines can add a new source of property taxes in rural areas that otherwise have a hard time attracting new industry. Each 100 MW of wind development in southwest Minnesota has generated about $1 million per year in property tax revenue and about $250,000 per year in direct lease payments to landowners. • Fewer subsidies: All energy systems are subsidized, and wind is no exception. However, wind receives considerably less than other forms of energy. In the 2005 energy bill, for example, of the $14.5 billion tax package, all types of renewable energy and energy efficiency combined received only $4.5 billion while fossil fuels received $5.6 billion. • Free Fuel: Unlike other forms of electrical generation where fuel is shipped to a processing plant, for wind energy the generating station, or wind turbine, is installed at the source of fuel. Wind is a native fuel that does not need to be mined or transported, taking two expensive aspects out of long-term energy costs. • Price Stability: The price of electricity from fossil fuels and nuclear power can fluctuate greatly due to highly variable mining and transportation costs. Wind can help buffer these costs because the price of fuel is fixed and free. • Promotes Cost-Effective Energy Production: The cost of wind-generated electricity has fallen from nearly 40¢ per kWh in the early 1980s to 2.5-5¢ per kWh today depending on wind speed and project size.
•
Creates Jobs: Wind energy projects create new short and long term jobs. Related employment ranges from meteorologists and surveyors to structural engineers, assembly workers, lawyers, bankers, and technicians. Wind energy creates 30% more jobs than a coal plant and 66% more than a nuclear power plant per unit of energy generated.
2. Social Advantages
•
National Security/Energy Independence: Wind turbines diversify our energy portfolio and reduce our dependence on foreign fossil fuel. Wind energy is homegrown electricity, and can help control spikes in fossil fuel cost. Distributed generation facilities, like many community wind projects, provide a safeguard against potential terrorist threats to power plants.
•
Supports Agriculture: It is not often a new crop emerges from thin air. Wind turbines can be installed amid cropland without interfering with people, livestock, or production.
•
Local Ownership: A significant contribution to the worldwide energy mix can be made by small clusters of turbines or even single turbines, operated by local landowners and small businesses. Developing local sources of electricity means
we import less fuel from other states, regions, and nations. It also means our energy dollars are plowed back into the local economy.
3. Environmental Advantages
•
Clean Water: Turbines produce no particulate emissions that contribute to mercury contamination in our lakes and streams. Wind energy also conserves water resources. For example, producing the same amount of electricity can take about 600 times more water with nuclear power than wind, and about 500 times more water with coal than wind.
•
Clean Air: Other sources of electricity produce harmful particulate emissions which contribute to global climate change and acid rain. Wind energy is pollution free.
•
Mining & Transportation: Harvesting the wind preserves our resources because there no need for destructive resource mining or fuel transportation to a processing facility.
•
Land Preservation: Wind farms are spaced over a large geographic area, but their actual "footprint" covers only a small portion of the land resulting in a minimum impact on crop production or livestock grazing. Large buildings cannot be built near the turbine, thus wind farms preserve open space.
DISADVANTAGES OF WIND POWER • A Variable Resource: Turbines produce electricity only when the wind blows. This variability is monitored and compensated in the same way utilities monitor demand changes each day, so there are not any actual changes in power supply for the end users. • Aesthetics: People have widely varied reactions to seeing wind turbines on the landscape. Some people see graceful symbols of economic development and environmental progress or sleek icons of modern technology. Others might see industrial encroachment in natural and rural landscapes. There are many ways to minimize the visual impact of wind turbines, including painting them a neutral color, arraying them in a visually pleasing manner, and designing each turbine uniformly.
•
Shadow Flicker: Shadow flicker occurs when the blades of the rotor cast a shadow. Research has shown the worst-case conditions would affect, by way of light alteration, neighboring residents a total of 100 minutes per year and only 20 minutes per year under normal circumstances.
•
Noise: Wind turbines are not silent. The sounds they produce are typically foreign to the rural settings where wind turbines are most often used, but as turbine technology has improved over the years, the amount of noise has fallen considerably. The sounds of wind turbines do not interfere with normal activities, such as quietly talking to one’s neighbor.
•
Biological Resource Impacts: As with any construction project or large structure, wind energy can impact plants and animals, depending on the sensitivity of the area. Direct fatalities from collisions or electrocutions and loss of wildlife habitat and natural vegetation are the primary wildlife concerns associated with wind energy. Extensive environmental impact analyses are integral of project development to mitigate impacts as much as possible.
•
Construction: Wind systems can involve the transportation of large and heavy equipment. This can cause a large temporarily disturbed area near the turbines. Erosion is another potential environmental problem that can stem from construction projects. The single most reliable technique for limiting erosion is to avoid grading roads and perform site reclamation post construction.
•
Radar: Radar interference by wind turbines is rare and easily avoided through technological improvements and proper sitting of turbines that are close to sensitive areas. A number of U.S. government installations have both wind turbines and functional radar, and the British military has a track record of successfully addressing these challenges
ORGANIZATION PROFILE:
Vestas is the world's leading producer of high-tech wind power systems. Vestas’ core business comprises the development, manufacture, sale, marketing and maintenance of wind power systems that use wind energy to generate electricity
VISION
To be the best and most trustworthy in the field of wind power systems – valued by customers, shareholders, employees and other stakeholders.
MISSION
To be the preferred partner of our customers by offering the most competitive and reliable wind turbines.
VALUES
? Ethics and Integrity: In the path of achieving the targets there will be no compromise on ethical business standards ? Customer First Vestas believe that they exist and grow only because of customers. They shall respond to customer needs on top priority. ? Quality Focus In every aspect of the business relationship Vestas believe that quality is excellent. ? Dependability Vestas always honor their commitments to their stakeholders ? Teamwork They shall foster teamwork and will not have functional barriers for achieving results. ? Policy Compliance Vestas shall always adhere to their corporate, company policies and guidelines. . These values are the foundation of Vestas’ attitudes and corporate culture.
VESTAS PROFILE
Vestas started to manufacture wind turbines in 1979 and has played an active role in this dynamic industry ever since. In 1987, Vestas began to concentrate exclusively on wind energy. Since then, the company has developed from a pioneer in the industry with a staff of around 60 to a global hi-tech market-leading group with more than 13,000 employees (March 2007). Over the years, Vestas has built up a worldwide sales and service network. As a result, working relationships with turbine owners do not end with delivery. On the contrary, the final delivery of a turbine marks the beginning of close collaboration over a period of at least 20 years. In short, Vestas cares for its turbines, no matter where in the world they may be. This ensures that Vestas remains a truly trustworthy partner
HISTORY
In the year 1878 H.S. Hansen, the blacksmith started a workshop and achieved success because of his impressive creativity & innovative drive. In the year 1945 H.S. Hansen’s son, Peder Hansen, joined forces with nine colleagues and established the company VEstjysk STalteknik A/S whose name is soon shortened to VESTAS. It started manufacturing house-hold appliances such as mixers and then moved to manufacturing tankers which is used for carrying oil and water in the year 1962. The business was growing good but in the mid 1970’s the oil crisis forced the company to look for alternative sources of income. This decision made to concentrate on wind turbines. In the year 1979 Vestas launched the first wind turbine. By 1985, Vestas employed around 800 people. In its successful group the company has seen a turnover rise by 35%. In 1997 increased competition and requirements for complete wind turbine solutions, kept pressure on wind turbine manufacturers and as a result Nordtank Energy Group (NEG) & Micon A/S decided to join forces to form NEG Micon A/S. With a global market share of 17%, the new company became the 2 nd largest player on the global market. Finally, in the year 2004, NEG Micon & Vestas received the final approval to
combine the two companies to create a new VESTAS – the undisputed world leader in the Wind Power Industry
VESTAS KEY FIGURES:
? The Vestas group in Total as on 31st March 2007: 13,018 Employees ? Production Facilities Denmark, Germany, India, Italy, Scotland, England, Spain, Sweden, Norway, Australia and China ?
MW sold worldwide in 2006:
Total** Vestas (incl. associated company) Vestas' market share 2006** ?
: : :
15,016 MW 4,239 MW 28.2 %
Accumulated installed MW worldwide as of December 2006
Total** Vestas (incl. associated company) Vestas' market share (accumulated) ** ?
Turnover in mEUR
: : :
74,306 MW 25,057 MW 33.7 %
Turnover 2001* Turnover 2002* Turnover 2003* Turnover 2004 Turnover 2005 Turnover 2006
: : : : : :
1,282 1,395 1,653 2,363 3,583 3,854
STAGES OF WIND PROJECT PLANNING Vestas' professional competencies cover every stage of wind project planning, installation and operation - from studies and simulations to service and maintenance. Studies and simulations: Vestas works with independent consultants on fundamental analyses of wind and site conditions. Analyses regarding load evaluations and modeling were done. The results help to ensure permits, satisfy local regulations and arrange funding. This also helps to conduct accurate simulations to optimize site design. Wind turbines: Choosing the right turbine is the key to a wind turbine project that provides a strong return on investment. Vestas has a broad range of turbine models, each targeting specific conditions and priorities. SCADA (Supervisory Control And Data Acquisition): A supervisory control and data acquisition system transforms discrete turbines into a single functioning entity. A wind power plant is a flexible program with a broad array of supervisory monitoring and control features that allow wind power plants to operate like a conventional power plant. From anywhere in the world it is possible to optimize production levels, monitor performance and generate management reports Project management: Vestas manages every aspect of a project from manufacture and procurement to the hiring and supervision of subcontractors, as well as the technical support throughout the construction process. Finally, systems are tested rigorously before commissioning, and thorough training is given to all operators and service personnel
Service and maintenance:
The delivery of a Vestas turbine marks the beginning of close collaboration over a period of atleast 20 years. Vestas global service network offers a variety of products which maintains a competitive edge by optimizing plant operations and minimizing downtime.
DEPARTMENTS:
The main departments of Vestas, India are explained below 1. PROJECT DEPARTMENT The primary responsibility of the Project department is to erect and install the Wind Turbine Generators at the location specified by the Marketing department with the assistance of Project Development after the components are delivered at the site by the Logistics. The function of Project department ends only when they hand over the commissioned turbine to the service department. In other words projects acts as the internal supplier for service department. 2. MARKETING DEPARTMENT THE HOLISTIC VIEW The Marketing department of Vestas is divided into sub-divisions, each with specific objectives, working towards a common goal. While Sales concentrates on bringing in the customers, CRM – Marketing functions towards catering their needs and so on. A brief view on various sub divisions of marketing is as follows: SALES / BUSINESS DEVELOPMENT
The Sales or the Business Development arm of the Vestas concentrates on bringing in Customers to the organization. In general, Sales are in terms of MW of power to the organizations or individuals according to their needs. The initial function of the sales department is Collecting database of all prospects and to find their needs. The needs of these prospective customers are analyzed. On acquiring an appointment, a Sales Presentation follows where the various features and benefits of the product were explained to the customer. The sales presentation is generally tuned according to the needs of the prospects and the duration of appointment In other words, Sales department identifies the suspects (by the database) and converts them to prospects (by convincing them about the product) and then to customers (by acquiring the order). CUSTOMER RELATIONSHIP MANAGEMENT
The primary responsibility of the CRM department is to have a constant relationship with the customers, understand their needs and act as a connecting bridge between them and organisation. The primary responsibility of CRM Marketing is to act as the Customer’s representative to the Organisation and vice-versa till the Wind Turbine Generator is commissioned. 3. FINANCE DEPARTMENT Finance Department is responsible in managing the finance in the Organization optimally and to raise funds as required.
Duties and functions:
?
Financial reports to VESTAS-monthly, half-yearly and annual actuals estimates and budgets. Statutory financial and legal returns. Analysis of project cost with estimates and sales calculation. Fund management to ensure financial are kept to d minimum. Coordination with bankers, auditors and lawyers. Overseeing the IT & HRD functions of vestas. Installaton of BOT project in vestas for Indian operations. Sales tax & service tax Physical cash count checks Chennai and Pondicherry. Passing of journal vouchers. Checking and passing project costing information. Miscellaneous
? ? ? ? ? ? ? ? ? ? ?
4. HUMAN RESOURCE DEPARTMENT Mission of HR department: To evolve HR practices that ensure competence and employee satisfaction.
Duties ? ? ? ? Salary administration Maintenance of statutory compliance Maintenance of employees details General administration
?
Maintenance of insurance for all company vehicles, and all other insurance like workmen compensation, GPA, health, travel shield policy, plant and machinery etc except insurance related to wind mills.
THE ROLES OF HR PERSONNEL ARE: To collaborate with the senior management to formulate effective human resource strategies, policies and programs to support the Organization’s goals and objectives, improve the effectiveness of management processes and address employees needs. To provide the functional/divisional heads with the information, tools, systems and support services that enable them to effectively manage and develop their human resources to achieve departmental goals To make available to employees information, tools, systems and support services that enable them to progress their careers in alignment with the goals of the Organization.
?
?
?
THE HR FUNCTION IS MANAGED THROUGH THE FOLLOWING KEY PROCESSES
HUMAN RESOURCE PLANNING SEPARATION RECRUITM ENT
HRD
PERFORMA NCE MANAGEM ENT INDUCTION
TRAINING & DEVELOPE MENT
TRAINING AND DEVELOPMENT IN VESTAS
The Performance Management System is an ongoing communication process that is undertaken in partnership between the Appraiser and the Appraisee. This partnership is undertaken with the primary objective of achieving the Organization goal, namely, Improved Performance and Results. This process also helps in providing clarity within the Organization of what is expected and how they are to be achieved.
The method adopted in Vestas wind Technology is Management By Objectives (MBO) The period of Appraisal is generally 1st June to 31st May, each year with one interim informal review in the month of December The 4 main activities of the Performance Management System in Vestas are: 1. PLANNING 2. MANAGING 3. REVIEWING 4. REWARDING 1. PLANNING:
Planning involves identification and agreement of the goals with the Appraiser, while understanding the resources, interdependency and constraints for the job. Along with the goals competencies, work habits and special Achievements are also identified. GOALS Goals or Targets represent what the appraisee is accountable for and in how much period they are expected to deliver.
GOAL SETTING: I. Identify major goals related to the job The Appraiser and the Appraisee should identify the key goals that are achievable. There should be focus on only 5-6 goals for a year. Having more number of goals will divert the attention from the major priorities of the job.
Types of Goals a) Operational Goals: These relate to outputs expected of routine, activity based Example: Production Target for a Month/Quarter/Year b) Project/ Assignment Goals: These relate to specific short term or long term initiatives as part of the responsibilities of the job Example: Connecting all the Wind Mills by the end of 2006 c) Self Development Goals: These relate to individual development, where one can earmark the areas of development, either in technical or soft skills Example: Acquiring knowledge of Scientific Modeling of Sites by December 2006 d) People Goals: These relate to interpersonal relationship, inter department interface, team work etc. Example: Improving Customer Satisfaction Index by 20% e) Quality Goals: These are related to introducing processes or following the defined processes and systems in the area of work. Example: Following the processes and ensuring there are no “non conformance reports” during quality audits
II. Writing the goals The goals that are set should have “SMART” characteristics Specific Measurable Agreeable Realistic Time-Bound
? ? ? ? ?
COMPETENCIES A Competency is knowledge, attribute or underlying characteristic of a person that enables him to deliver superior performance in a given job or role or situation. Competencies represent “HOW” a particular job needs to be done. Example: When a Marketing Department Employee is given a target of increasing the sales volume ( 500MW by 2007) then the competency which is seen in him during the Appraisal period is whether he is RESULT ORIENTED or not. WORKHABITS In few kind of jobs work habits play a major role. They should be considered during the Appraisal Period to improve his performance and to meet the Organizations Objectives.
They include: Punctuality Uninformed and Frequent Absenteeism Clean and neat performance Politeness Flexibility in accepting work from people Speed in completion of job
? ? ? ? ? ?
SPECIAL ACHIEVEMENTS Special Achievements represents those incidents or occasions where an employee contributes in a significant way, far beyond the call of duty. These are special and are not pre-planned.
2. MANAGING: This is the critical part in the entire Performance Management Process. In this stage Appraiser explains various goals, their importance and the necessity for an employee to meet/exceed pre-agreed levels of performance. Managing is the process where an employee is guided and encouraged to improve performance and achieve targets. There should be openness to give/ receive feedback, to advice, counsel, explanations etc 3. REVIEWING: Reviews are structured opportunities to provide performance feedback to the Appraisee and set the goals for the upcoming period. These are conducted periodically as per fixed schedule.
This process is effective only if the Appraisee get regular feedback from the Appraiser about the quality of the work. 4. REWARDING: Rewarding to the employees is done based on the Performance Appraisal Rating given to the employees. There will be no automatic increase in compensation and promotions as the employees gain experience. All the increments or promotions are purely based on the performance rating of the employees, Companies Performance criteria, Market Situations and some other policies EVALUATION OF THE EMPLOYEES PERFORMANCE In the process of evaluation of the employee performance, employees are allowed to rate themselves on a scale of 1-4 (1 being the least and 4 being the highest), and then during the Appraisal Interview, the employee Appraiser gives the ratings on the scale of 1-4 based on his performance in achieving Goals, Competencies, Work Habits and Special Achievements. The rating given by the Appraiser is considered the evaluation purpose. Based on the ratings given to them on Goals, Competencies, Work Habits and Special Achievements and the weightages given to Goals, Competencies, Work Habits and Special Achievements, their composite rating(score) is calculated. This score is considered as the final rating.
WEIGHTAGE DISTRIBUTION
Weightage of Goals Weightage of Work habits
: :
60% 30% 10%
Weightage of Competencies :
A discretionary weightage of 10% on special achievements can also be given Employee’s performance is rated on a scale of 1 to 4 based on the ratings given to them by their Appraiser where the representations of the scores are as follows: 1. Poor 2. Average 3. Good 4. Outstanding. RESULTS OF RATING According to this rating, and the deviations in the employee’s current salary and the market value, his Increments/ Promotions are decided. If he is found that he is capable person of handling more duties then he is given more responsibilities
?
?
?
.If the employee’s rating is found average, then the weakness of the employees are identified and accordingly training is given to the employees If the employee’s performance is found to be poor then he may be removed from the job
?
Along with this performance appraisal form the seniors are suggested which areas are in strength these people as well as weaknesses these suggestions are taken into consider according that training is conducted to the members in the organization. In this way vestas is started the training and development of the employees.
CHAPTER – 4
___________________________________
Data Analysis and Interpretation
1.
Is Training and Development given adequate importance in your
organization? S.NO 1 2 3 4 OPINION To a great extent To a reasonable extent To a small extent Not at all NO. OF RESPONDENTS 38 44 18 __ 100 % OF RESPONSE 38% 44% 18% __ 100%
TOTAL
45 40 35 30 25 20 15 10 5 0 No. of respondents
To a great extent To a reasonable extent To a small extent Not at all
INTERPRETATION It was found through the response of a major number of employees that, Training was given a reasonable importance in the organization followed by many to a great extent and some to a small extent.
2. Have you experienced any improvement in your self-confidence levels after attending the Training Programmes? S.NO 1 2 3 4 OPINION To a great extent To a reasonable extent To a small extent Not at all TOTAL NO. OF RESPONDENTS 30 48 14 08 100 % OF RESPONSE 30% 48% 14% 08% 100%
50 45 40 35 30 25 20 15 10 5 0 No. of respondents
To a great extent To a reasonable extent To a small extent Not at all
INTERPRETATION It was found from the response that major number of respondents experienced improvement in their self-confidence levels to a reasonable extent followed by many to a great extent and some to a small extent. It was even found that a little number of respondents did not find any improvement in their self-confidence levels.
3. Do you think the Training Programmes are relevant to your work environment? S.NO 1 2 3 4 OPINION To a great extent To a reasonable extent To a small extent Not at all TOTAL NO. OF RESPONDENTS 20 64 08 08 100 % OF RESPONSE 20% 64% 08% 08% 100%
70 60 50 40 30 20 10 0 No. of respondents To a great extent To a reasonable extent To a small extent Not at all
INTERPRETATION It was found from the response that major number of respondents felt that the Training Programmes were relevant to the work environment to a reasonable extent followed by some to a great extent and very little respondents to a small extent and some even felt that the Training Programmes were not at all relevant to the work environment.
4. Were you given prior idea about the training topic when you were nominated for a Training Programme? S.NO 1 2 3 OPINION Yes No Not aware TOTAL NO. OF RESPONDENTS 58 40 02 100 % OF RESPONSE 58% 40% 02% 100%
60 50 40 30 20 10 0 No. of respondents Yes No Not aware
INTREPRETATION It was found that from the response that major number of respondents were given prior idea about the training topic while some responded that they were not given
prior idea the training topic when they were nominated for a Training Programme and a very little percentage of respondents said that they were not aware of it.
5. What type of Training Programmes you basically attend? S.NO 1 2 3 4 OPINION Behavioral Environmental Functional All four areas NO. OF RESPONDENTS 40 06 20 44 % OF RESPONSE 36.36% 05.45% 18.18% 40%
45 40 35 30 25 20 15 10 5 0
Behavioral Environm ental Functional All
No. of respondents
INTERPRETATION It was found that many respondents attended for the Training Programmes in all attended for the Training Programmes in two areas also. the four areas followed by Behavioral, Functional and Environmental. Some employees
6. Are there any changes occurred in the pattern of Training Programmes conducted to you in past five years? S.NO 1 2 3 4 5 OPINION To a great extent To a reasonable extent To a small extent Not at all Not Applicable TOTAL NO. OF RESPONDENTS 16 42 20 10 12 100 % OF RESPONSE 16% 42% 20% 10% 12% 100%
45 40 35 30 25 20 15 10 5 0
To a great extent To a reasonable extent To a small extent Not at all Not applicable
No. of respondents
INTERPRETATION It was found from a major number of respondents that changes occurred in the pattern of Training Programmes conducted in past 5 years to a reasonable extent followed by some to a small extent and some to a great extent. There are less number of respondents who said that there were no changes in the Training Programmes from long time. Some employees did not respond, as their service in the organization is only a few months.
7. How is the feedback collected? S.NO 1 2 3 OPINION Questionnaire Interviews Tests TOTAL NO. OF RESPONDENTS 100 __ % OF RESPONSES 100% __ 100%
100 90 80 70 60 50 40 30 20 10 0
Questionnaire Interviews Tests No. of respondents
INTERPRETATION It was found from the respondents that feedback is collected through Questionnaires to a great extent followed by Tests to a small extent. Some said that feedback is collected both by Questionnaires and Tests, but no one responded to Interview feedback. So, feedback is not collected through interviews.
8. Is your feedback considered for further Training Programmes organized?
S.NO
1 2 3
OPINION
Yes No Not Aware
NO. OF RESPONDENTS 40 20 40 100
% OF RESPONSES 40% 20% 40% 100%
TOTAL
40 35 30 25 20 15 10 5 0 No. of respondents Yes No Not aware
INTERPRETATION
It was found that many number of respondents felt that their feedback is considered for further Training Programmes while some felt that their feedback is not taken into consideration. The remaining employees were not aware or not able to say whether their feedback is taken into consideration or not.
9. When did you recently attend a Training Programme?
S.NO
1 2 3 4
OPINION 1-3 months back 3-6 months back 6-9 months back 9-12 months back
NO. OF RESPONDENTS 12 28 16 44 100
% OF RESPONSE 12% 28% 16% 44% 100%
TOTAL
45 40 35 30 25 20 15 10 5 0 No. of respondents
1-3 mths back 3-6 mths back 6-9 mths back 9-12 mths back
INTERPRETATION It was found from the respondents that most of them have attended the Training Programmes 9-12 months back followed by 3-6 months, 6-9 months and lastly 1-3 months back. Some employees even did not attend a Training Programme from past two years.
10. Is the Training Policy adopted by your organization well designed and shared? S.NO 1 2 3 4 OPINION Agree Disagree Strongly agree Strongly disagree NO. OF RESPONDENTS 68 18 04 10 100 % OF RESPONSE 68% 18% 04% 10% 100%
TOTAL
70 60 50 40 30 20 10 No. of respondents 0 Agree Disagree Strongly agree Strongly disagree
INTERPRETATION It was found from the response that most of the respondents agreed and strongly agreed with the Training Policy adopted by the organization. It was even found that some of the respondents responded that they strongly disagree with the organization’s Training Policy.
11. Is Training and Development a motivating factor in your organization? S.NO 1 2 3 4 OPINION To a great extent To a reasonable extent To a small extent Not at all TOTAL NO. OF RESPONDENTS 12 58 24 06 100 % OF RESPONSE 12% 58% 24% 06% 100%
60 50 40 30 20 10 No. of respondents 0 To a great extent To a reasonable extent To a small extent Not at all
INTERPRETATION It was found that major number of respondents felt that Training and Development is a motivating factor in Vestas to a reasonable extent, followed by many to a small extent, some to a great extent. But a little number felt that Training and Development is not a motivating factor in the organization.
12. Were you satisfied with the Training Programmes you have attended?
S.NO 1 2 3 4
OPINION To a great extent To a reasonable extent To a small extent Not at all
NO. OF RESPONDENTS 22 64 14 __ 100
% OF RESPONSE 22% 64% 14% __ 100%
TOTAL
70 60 50 40 30 20 10 0 No. of respondents To a great extent To a reasonable extent To a small extent Not at all
INTREPRETATION It was found from the respondents that major numbers of employees were satisfied with the Training Programmes followed by some to a great extent and a little number to a small extent. But no one was dissatisfied with the Training Programmes of VESTAS.
13. Your overall rating of the Training Programmes conducted by VESTAS S.NO 1 2 3 4 OPINION Excellent Good Satisfactory Poor TOTAL NO. OF RESPONDENTS 22 46 26 06 100 % OF RESPONSE 22% 46% 26% 06% 100%
50 45 40 35 30 25 20 15 10 5 0
Excellent Good Satisfactory Poor
No. of respondents
INTERPRETATION It was found from the response that major number of respondents felt, the overall rating to the Training Programmes is good followed by some to a satisfactory level. Some felt that the Training Programmes of VESTAS were excellent while the remaining felt that the Training Programmes were poor.
14. How is the work environment in VESTAS? S.NO 1 2 3 4 OPINION Excellent Good Satisfactory Poor TOTAL NO. OF RESPONDENTS 18 52 24 06 100 % OF RESPONSE 18% 52% 24% 06% 100%
60 50 40 30 20 10 0 No. of respondents Excellent Good Satisfactory Poor
INTREPRETATION It was found from the employees that the work environment in VESTAS is good to a great extent followed by some at a satisfactory level. Some felt that the work environment is excellent while the remaining felt that the work environment is poor.
Effectiveness of Training Programmes in the organization
After careful observation, the effectiveness of training programmes is found through the employees S.NO 1 2 3 4 OPINION EXCELLENT VERY GOOD SATISFACTORY POOR % OF RESPONSE 20% 67% 11% 2%
% OF RESPONSE
EXCELLENT VERY GOOD SATISFACTORY POOR
CHAPTER-V
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
• It is found that 87% of the total respondents feel that their supervisor strictly following the standard format of performance review and 13% of the respondents feel that the standard format is not being followed • The time spent by the supervisor for the discussion on the performance review is 10-20 minutes for 35% of the associates; no time was spend by the supervisor for 5% of associates and 20 minutes and above time was spent by the supervisor for 60% of the associates.
•
There is a feeling that 55% of the total respondents agree that their supervisor takes the performance appraisal process seriously, 35% of the respondents strongly agree, 5% disagree and another 5% of the respondents strongly disagree
•
53% of the total respondents strongly agree that they can share thoughts and feelings freely with the supervisor and 47% of the respondents just agree
•
It is evident that 60% of the respondents agree that their discussions with their supervisor are fruitful, 30% agree and 10% of the respondents disagree with this
•
I found that 87% of the total respondents agree they and their supervisor mutually arrive a t final rating and 13% of the respondents do not agree with this
. • It is found that 88% of the total respondents agree that they get guidance in understanding the process of performance review from their supervisor and only 12% disagree with this • It is learned that 63% of the total respondents believe that their goals for the year 2006 are SMART and 37% believe that their goals are not SMART • The survey reveals that only 55% of the associates have completed their mid-year review. 45% of the associates have not yet completed their mid-year review; this is due to the reason that their supervisors could not spend time for review. • It denotes that 60% of the total respondents taken as 100%, 75% of them say that their supervisors identify training needs after the mid-year review and 25% disagree with this.
•
It shows that 54% of the respondents say that their mid-year appraisal has helped them to do their job better, 33% say that it has greatly helped them and 13% disagree with this statement.
SUGGESTIONS
• To appraise the employees twice in a year so that the employees performance will become better in the coming year, instead of one year. • Data of the appraisal should be written immediately after completion of the appraisal process. Then their will be no loss of data about the employees performance and analysis can be done properly
•
Other attributes must be identified to measure the performance such as interpersonal skill, avoiding conflict, situational behavior can be rated.
•
Reward and performance should be linked. The person getting highest rating should be given reward as an incentive package
•
Proper counseling and support should be given by the management to improve the performance of the employees
•
Identify proper training needs for those who have undergone mid-year review. Make sure that the mid-year appraisal must be useful to them in achieving the objectives of the Organization
•
After the mid-year review the training needs that are identified should be completed within that year. Then the associates will satisfy about their
performance of the job. These training programs should be organized during unseasons • An influential person and who has popularity among employees should provide awareness of the system and motivate employees to participate in the meetings • The incentives provided for good performance must be a motivating factor for a better performance • There is a feeling that this system is not fully utilized to recognize the performance of the associates. So, top management should create seriousness towards the performance management system • The performance management system that is being follows is very well designed. But there should be no delay in its implementation practically • The parameters on which the performance is assured should be more logical and analytical.
CONCLUSION
From the opinions, views and response of the employees on this study, I conclude by saying that most of the employees of VESTAS WIND TECHNOLOGY PRIVATE LIMITED hold a positive view on the effectiveness of the performance management system in the Organization.
In today’s competitive era, Organizations need to have performing people to reach its appropriate goal Vestas is the best performing Organization globally in the wind industry. There is consistency in rating the performance of the individuals. Employees are co-operative in improving the productivity. Skills of the employees are being well recognized and are given a chance to prove their work. This motivates them to work for the Organization to achieve the target set before them Hence I conclude with a positive note on the study by saying that the Organization with the implementation of suggestions and by developing a multi prone strategy covering all the aspects of performance management system would become a “benchmark” for the rest of the firms in this field.
BIBLIOGRAPHY
___________________________________
BIBLIOGRAPHY
BOOK
a. C.B.MAMORIA
AUTHOR
Personnel Management
b. L.M.PRASAD
Principles and Practice of Management
c. P.SUBBA RAO
Essentials of Human
Resource Management &
Industrial Relations d. C.R.KOTHARI Research Methodology
WEBSITE: www.hindustanpetroleum.com www.hindpetro.com Hptrainingportal
ANNEXURE
___________________________________
QUESTIONNAIRE
Survey on Training and Development in HPCL, Visakhapatnam (As a part of our project work)
NAME: DESIGNATION: DEPARTMENT:
1) Is Training and Development given adequate importance in your organization? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 2) Have you experienced any improvement in your self-confidence levels after attending the Training Programmes? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 3) Do you think the Training Programmes are relevant to your work environment? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 4) Were you given prior idea about your training topic when you were nominated for a Training Programme? a) Yes b) No c) Not aware 5) What type of Training Programmes you basically attend? a) Behavioral b) Environmental c) Functional d) All four areas
6) Are there any changes occurred in the pattern of Training Programmes conducted to you in past five years? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 7) How is the feedback collected? a) Questionnaire b) Interviews c) Tests 8) Is your feedback considered for further Training Programmes organized? a) Yes b) No c) Not aware 9) When did you recently attend a Training Programme? a) 1-3 months back b) 3-6 months back c) 6-9 months back d) 9-12 months back 10)Is the Training Policy adopted by your organization well designed and shared? a) Agree b) Disagree c) Strongly agree d) Strongly disagree 11)Is Training and Development, a motivating factor in your organization? a) To a great extent b) To a reasonable extent
c) To a small extent d) Not at all 12)Were you satisfied with the Training Programmes you have attended? a) To a great extent b) To a reasonable extent c) To a small extent d) Not at all 13)Your overall rating of the Training Programmes conducted byVESTAS. a) Excellent b) Good c) Satisfactory d) Poor 14)How is the work environment in VESTAS? a) Excellent b) Good c) Satisfactory d) Poor 15)Your suggestions regarding the Training System in VESTAS (if any)
THANK YOU
doc_305897413.doc
may God Bless You