CHAPTER 1.

INTRODUCTION, DESIGN AND EXECUTION OF THE

STUDY

1.1 INTRODUCTION TO THE STUDY

The project work entitled STUDY ON EFFECTIVENESS OF EMPLOYEE TRAINING AND
DEVELOPMENT IN SHAA EXPORTS is mainly conducted to identify the factors which will
motivate the employees’ functions in SHAA EXPORTS PVT LIMITED.
Management’s basic job is the effective utilization of human resources for achievements of
organizational objectives. Training is process of learning a sequence of programmed behavior. It is
the application of knowledge. It gives people an awareness of the rules and procedures to guide
their behaviors. It attempts to improve their performance on the current job and prepares them for
an intended job. To match the employee specifications with the Job requirements and
organizational Needs: Management finds deviations between employee’s present specifications
and the job requirements and organizational needs. Training is needed to fill these gaps by
developing and molding the employee skills, knowledge, attitude, behavior, etc….
Organizational Viability and the Transformation Process: The primary goal of most of the
organizations is that their viability is continuously influenced by environmental pressure. If the
organization desires to adapt to these changes, first it has to train the employees to impart specific
skills and knowledge in order to enable them to contribute to organizational efficiency and to cope
with training in order to ensure a smooth transformation process. The training has an important
role in the future development of the business
The data needed for the study has been collected from the employees through
questionnaires and through direct interviews. Analysis and interpretation has been done by using
the statistical tools and data’s are presented through tables and charts.

1
1.2 INDUSTRY PROFILE

GARMENTS INDUSTRY
Indian sub continent is the second largest manufacturer of garments after China
being the global leader in garment production. India is known for its high quality garments for men
and most of the garment manufacturers are in the Small and Medium scale industry

Indian men's clothing industry has been growing steadily over the past few years, thishas
been possible owing to the Indian male becoming more fashion conscious, and hence there is more
consumption which has increased global demand of men's garments by the rest of the world .India
Garment Industry has an advantage as it produces and exports stylish garments for men at
economical prices due to cheap labor rates. Today the by the way of Technological advancement
and use of sophisticated machinery it has enabled the manufacturers to achieve better quality and
well designed garments. India's Garment Industry has been rapidly growing in last few years.
Exports have been rising as there is an increase in orders from global buyers accompanied by a rise
of investments in the garment sector of the country. The Garment Industry is of major importance
to the Indian economy as it contributes substantially to India's export earning, it is estimated and
analyzed that one out of every six households in the country depends on this sector either
indirectly or directly for its livelihood .From all over the world the Retailers also increasingly
come to India attracted by low production costs. The large brands among them are Wal-Mart,
Tesco, and M&S.
India is booming with fashion and lifestyle, with the organized retail trade growing at a rate of
30% per annum. The Indian apparel or Indian garment industry is pegged at more than 90,000
cores with nearly 13% growth per annum. The men's garment or clothing segment constitutes
nearly 45 % of the total apparel market and growing at a constant rate each year. The share of
organized branded segment in men's wear is fast increasing in the Indian apparel market.
Indian Garment Sector earns high export revenue, it has witnessed substantial profit accruing to
retailers and Indian manufacturers are reflected in garment workers' wages. In 2004, Asian trade in
the Garment Industry was to the tune of 138 billion US dollars. In Bangalore itself there are large
retail chains from the US and Europe - like GAP, Wal-Mart, Tommy Hilfiger and JC Penny - have
outsourced orders to large factories to the tune of 269.6 million US dollars in 2005.
Indian Garment Industry is closely connected to the fashion industry and grows hand in hand. With
these even opportunities for the employment is also increasing to a larger extent. These high levels
of fashion consciousness has created the need for candidates who are highly productive, efficient
and have a passion to create new designs and give way to creativity. This Industry demands and
requires both skill and diligence. India is an ultimate combination, like it has a matured garment
industry for a long time along with a vast trained manpower. Some of the key areas to work are
related to design and manufacturing, merchandising, import export according to the government
policies, freight and shipments etc. work as designer, or a start up a business in the local market
and expand the business to the others areas of the national market.

3
 1.3 COMPANY PROFILE

SHAA EXPOTRS a ambitious venture aimed at delivering a wide range of garments

products in the market. In a very modern way, ladies wear and kids wear are produced directly by
their own factory. The company aims to create a lot of innovation in this sector, beginning with its
own retail outlets, which come up with different ideas in the Garments Industry. The company has
a great reputation for uniform and the goal is to capture all uniform sectors in Kerala.
SHAA EXPORTS had its beginning in 1985 at kottakkal, Malappuram district in Kerala,
South India. The vision of Mr. Shahul hameed combined with determination and hard work
brought him to be the Managing Director of shaa exports with a turnover of 5 million sets of
clothing so far. His first team of 20 committed people had grown to a task force of 300 people in
2005 and now over a 1,000, making it the leading manufacturer in garment in the region.
The company has grown in statue as one of the leaders in garment manufacturing segment
in this part of the world. Shaa exports produce clothes for men women and Childs The team
consists of textile professionals, fashion designers, skin specialists, skilled laborers and marketing
experts. Apart from having a state of the art manufacturing environment, it has also got a dedicated
research wing to analyze key aspects of the business, ranging from the nature of various fabrics to
the latest trends. Garments are available at all the major textile shops across South India and the
company is exporting the goods to foreign countries. The cloths widely admired for the utmost
comfort, they have the brands for each of the products like in sections as kids wear ladies wear and
gents wear

4
1.4 STATEMENT OF THE PROBLEM

The research problem here in this study is associated with the Effectiveness of training and
development on SHAA EXPORTS Pvt Ltd. There are a variety of factors that can influence the
organization some of these factors include

1. Leadership skills
2. Team building
3. Problem solving
4. Higher performance
5. Opportunity to learn and grow
6. Management of corporate culture etc.

Good training and development is an asset to any organization. It is because the Employee
performance and Job satisfaction is clearly linked. Hence this study is focusing on the employee
performance satisfaction in the organization. The research problem is formulated as follows:

What are the factors which help to satisfy the employee performance?

1.5 OBJECTIVES OF THE STUDY

1.5.1 Primary objective

1. To study the effectiveness of training and factors considered for the

effective training
1.5.2 Secondary Objective.

1. To study the training how much influences the leadership skills

2. To study the training how much help for team building on employees.
3. To learn the employee’s satisfaction on the training programs exists in the organization.
4. To learn the employee’s satisfaction on the opportunity to learn and grow in the
organization.
5. To study the training influence the employees for higher performance
6. To provide the practical suggestion for the improvement of organization’s training methods

5
1.6 SCOPE OF THE STUDY

The study on the topic of EFFECTIVENESS OF EMPLOYEE TRAINING AND

DEVELOPMENT IN SHAA EXPORTS aims to evaluate the training effectiveness on the
organization, and also identify the effect on the organization on employees by training . The study
was conducted based on the variables Competency development, learning and development,
leadership skill development ,team building, problem solving, job satisfaction . Which are obtained
from various literature reviews. The study covers the respondents of 100 employees of shaa
exports pvt limited at Malappuram. Data was collected through a survey using Questionnaire.

1.7 LIMITATIONS OF THE STUDY

▪
Time is a limiting factor, getting more data within the specified time limit is found difficult
▪
The results and findings based on employee responses sometimes may be biased
▪
Errors due to personal bias are unavoidable
▪
The findings of survey are based on the subjective opinion of the respondents and there is
no way of assessing truth of the statements.

6
 CHAPTER 2 REVIEW OF LITERATURE

The purpose of review of literature is to identify the problem statement, understand the
secondary data that has been gathered in the field of study and make new findings on the problem
statement.

Kuldeep Sing (2000) has selected 84 organization from business representing all the major domestic
industries questionnaire has developed by Huselid (1993) are used to study training. The objectives of the
study are to examine the relationship between training and organizational performance which shows that
Indian organizations are still not convinced of the fact that investments in human resources can result in
higher performance

Alphonsa V.K. (2000) has conducted training climate survey in a large private hospital in
Hyderabad. 50 supervisors from different departments of the hospitals randomly selected for the
study. The researcher used training – climate survey questionnaire (Rao-1989). “The analysis of
training climate as perceived by the supervisors” Covered various aspects such as corporate
philosophy policies superior, subordinate relationships, valued performance features and
behaviours, interpersonal and group relationship

Singh, S. K. and Banerjee, S. (2000), reveals that construction is the second largest economic activity in
India, and accounts for half of the nation's investment or development. In this article the authors briefly
discuss the HRD strategies at various levels in construction organisations. Many sectors of the construction
industry are in urgent need of technological upgradation. An effort to develop manpower by the
organisations will directly show results in the bottom line. Since there are not many professionals imparting
training in construction - related aspects, refreshers training is essential and some concrete efforts in
imparting systematic technical training is necessary.

Binna Kandola (2000) has discussed some of the difficulties associated with accurate and useful evaluation
of training effectiveness particularly in the department of soft skills which include skills relating to people
management. The author highlights some existing training evaluation techniques and then outlines a model
of training evaluation which currently is found to be successful in the United Kingdom.

7
Logan, J.K (2000) illustrated that retention is a complex concept and there is no single recipe for
keeping employees with a company. Many companies have discovered, however, that one of the
factors that helps retain employees is the opportunity to learn and try new things. The Gallup
Organization also supports this contention, as they found “the opportunity to learn and grow” as
one of the critical factors for employee retention. Companies that offer employee development
programs find success with retaining workers. Sears has found that in locations where managers
work to help their employees grow professional turnover is 40 to 50 per cent less than in stores
where that relationship does not exist.

Wagner S (2000) in his study on “Employees Speak out on Job Training: Findings of New Nationwide
Study,” highlighted employee development programs are experiencing higher employees satisfaction with
lower turnover rates although salary and benefits play a role in recruiting and retaining employees, people
are also looking for opportunities to learn new things, the challenge of new responsibilities, and the
prospect of personal and professional growth. The Gallup Organization found that employee satisfaction
and retention are high when a company is willing to train its workers. Lance Gray and Judy

Mc Gregor (2001) have compared 100 New Zealand surveys for workers aged 55 years and over, and
another one for employers. The issue of older workers captured respondent attention with both studies
receiving response roles of around 50%. The congruence of attitudes among older workers and employers
regarding the efficiency was negative. Training stereotypes is a feature of the study. Older workers are in
some agreements that there is difficult to train less willing to lean and afraid of new technology older
workers saw provision of training as a concern with 11.6% reporting discrimination with regard to training.
Significantly, skilled older workers saw the provision of training was a signal by employers that they are to
be taken as serious contributors

Olga et al (2001) is concerned with how MNCs differ from indigenous organization in relation to their
training needs and whether this relationship changes across countries. The question is whether local
isomorphism is apparent in the training needs of MNCs, or whether MNCs share more in common with
their counterparts in the countries. A series of hypothesis has been put forward and tested using survey data
form 424 multinational and 259 indigenous organizations based in the UK (United Kingdom) and Ireland.
The result suggests a hybrid form of localization. Where MNCs adopt their practices to accommodate
national differences but that these adaptations have not reflected convergence to domestic practice. The
results also indicates that the MNCs are selective in the training practices that are adopted. Evidence from
this study indicate that country difference in career traditions and labour market skill needs are key drivers
in the localization of associated training. In contrast MNCs, irrespective of national Content adopt
comparable systematic training frameworks (i.e.) Training and identification evaluation and delivery.
Yadapadithaya (2001) studied the current practices of evaluating training and development programmes in
the Indian 38 corporate training and development system. Indian Corporate sector is currently facing the
challenge of designing and developing more valid, reliable and operational measures to evaluate the
effectiveness of training and development.

Radhakrishna, Plank, and Mitchell (2001) studied using a learning style instrument (LSI) and
demographic profile in addition to reaction measures and learning measures. The three training objectives
were to assess knowledge gained through a Webbased training, to determine participant reaction to Web-
based material and Listerv discussion, and to describe both the demographic profile and the learning style of
the participants. The evaluation of the training began with an on-line pretest and an on-line LSI. The pretest
included seven demographic questions. The LSI, pretest and post test, and LSI questionnaire were paired by
the agent’s social security numbers. Fifty-five agents of the available (106) agents completed all four
instruments and were included in this study.

Bettina Lankard Brown (2001) reveals that training and development efforts are big business in the
United States, with the amount of money spent increasing every year. However, changes in the economy
and declining profit margins are prompting many businesses to question the value of their training
investments. Do businesses benefit from their expenditures on employee training or are they merely
preparing their workers for jobs elsewhere? When workers bear the costs of such training, do they realize
personal benefits or does the employer reap the only rewards? This study examines myths and
misconceptions about who pays and who reaps the Return On Investment (ROI) in training. Investments in
Training are assumed to have positive returns.

Knuckey and Johnston (2002) in New Zealand, where a survey of businesses identified a high proportion
of “leaders” engaging in training compared with “laggers”. This concept also underpins the “Investors in
People” standard in the UK. 39 Training strategies in the emerging hi-tech banking environment by Basu,

Kishanjit; Satish, P. (2001) implies that, like all other institutions, banks have to organise, develop and
manage their human resources effectively in order to achieve their goals. Their major responsibility in this
regard is to build up a right mix of skills and attitude among their employees. For achieving this, a
continuous process of training interventions in banks is a must. However banking the world over, including
India, is undergoing a change, transforming itself into technology based, specifically, IT [Information
Technology] based banking. This transformation calls for a radical departure from the existing training
strategies.
Srivastava (2001) has evaluated the effectiveness of various training programmes offered by the in-house
training centre of Tata Steel, Shavak Nanavati Training Institute (SNTI), India. The effectiveness of the
training was measured in terms of various outcomes such as satisfaction level; reaction and feedback of
participants; and change in performance and behavior as perceived by participants, their immediate
supervisors, and departmental heads.

Oatey (1970) Training improves a person’s skill at a task. Training helps in socially, intellectually and
mentally developing an employee, which is very essential in facilitating not only the level of productivity
but also the development of personnel in any organization.

Yoder (1970) Training and development in today’s employment setting is far more appropriate than
training alone since human resources can exert their full potentials only when the learning process goes for
beyond the simple routine.

Hesseling (1971) Training is a sequence of experiences or opportunities designed to modify behavior in

order to attain a stated objective.

Kane (1986) If the training and development function is to be effective in the future, it will need to move
beyond its concern with techniques and traditional roles. He describes the strategic approaches that the
organization can take to training and development, and suggests that the choice of approach should be based
on an analysis of the organization’s needs, management and staff attitudes and beliefs, and the level of
resources that can be committed. This more strategic view-point should be of use in assessing current
efforts as well as when planning for the future.

Raymond (1986) The influences of trainees’ characteristics on training effectiveness have focused on the
level of ability necessary to learn program content. Motivational and environmental influences of training
effectiveness have received little attention. This analysis integrates important motivational and situational
factors from organizational behavior theory and research into a model which describes how trainees'
attributes and attitudes may influence the effectiveness of training.

Adeniyi (1995) Staff training and development is a work activity that can make a very significant
contribution to the overall effectiveness and profitability of an organization.
Chris (1996) Training and development aim at developing competences such as technical, human,
conceptual and managerial for the furtherance of individual and organization growth.
Seyler, Holton III, Bates, Burnett and Carvalho (1998) The continuous changing scenario of business world,
training is an effective measure used by employers to supplement employees’ knowledge, skills and
behaviour.

Akinpeju (1999) The process of training and development is a continuous one. The need to perform one’s
job efficiently and the need to know how to lead others are sufficient reasons for training and development
and the desire to meet organizations objectives of higher productivity, makes it absolutely compulsory.

Oribabor (2000) Training and development aim at developing competencies such as technical, human,
conceptual and managerial for the furtherance of individual and organization growth.

Isyaku (2000) The process of training and development is a continuous one. It is an avenue to acquire more
and new knowledge and develop further the skills and techniques to function effectively.

Tan, Hall and Boyce (2003) Companies are making huge investment on training programmes to prepare
them for future needs. The researchers and practitioners have constantly emphasised on the importance of
training due to its role and investment.

Stavrou et al., (2004) The main goal of training is to provide, obtain and improve the necessary skills in
order to help organizations achieve their goals and create competitive advantage by adding value to their
key resources – i.e. managers.

Chih , Li and Lee (2008) Training programme is dependent on the following parameters for its success (i)
perceived value of leaning programme (ii) attitude to teacher (iii) response to learning conditions (iv) desire
to learn: the degree to which trainees really want to learn and do well.

Giangreco, Sebastiano, and Peccei (2009), The key determinants of overall satisfaction with training
(OST) are perceived training efficiency (PTE) and Perceived usefulness of training (PUT).

Bates and Davis (2010) Usefulness of training programme is possible only when the trainee is able to
practise the theoretical aspects learned in training programme in actual work environment. They highlighted
the use of role playing, cases, simulation, mediated exercises, and computer based learning to provide
exposure to a current and relevant body of knowledge and real world situations.
Kalaiselvan and Naachimuthu (2011) Training cost and business benefits are drawn on X and Y axis
respectively. Four quadrants were identified to highlight (i) strategic (Lower training cost and higher
business benefits), (ii) Payback (Higher training cost and higher business benefits) (iii) Think (Lower
training cost and lower business benefits) (iv)Drop (Higher training cost and higher business benefits).

Karthik R (2012) Training objectives tell the trainee that what is expected out of him at the end of the
training program. Training objectives are of great significance from a number of stakeholder perspectives;
Trainer, trainee, designer, evaluator.
2.1 Research Variable Source Summary
Table 2.1.1 Research variable source summary

Kuldeep Sing relationship between training and organizational

performance investments in human resources Huselid (1993)
COMPETENCE
DEVELOPMENT Srivastava (2001) effectiveness of various training programmes
offered by the in-house training centre of Tata Steel, Shavak Nanavati
Training Institute (SNTI), India change in performance and behavior
as perceived by participants
Logan, J.K (2000) factors that helps retain employees is the
opportunity to learn and try new things critical factors for employee
LEARNING AND retention
DEVELOPMENT
Wagner S (2000 Employees Speak out on Job Training: Findings of
New Nationwide Study,” The Gallup Organization employee
satisfaction and retention

Akinpeju (1999) process of training and development organizations

LEADERSHIP SKILLS objectives of higher productivity
DEVELOPMENT
Chris (1996) Training and development at developing competences
training mastery

Kishanjit; Satish, P. (2001) continuous process of training

TEAM BUILDING
interventions in banks radical departure from the existing training
strategies.
Adeniyi (1995) Staff training and development is a work activity
perceived training efficiency

Bates and Davis (2010) theoretical aspects learned in training programme in

PROBLEM SOLVING actual work environment current and relevant body of knowledge and real
SKILLS world situations

Kane (1986) strategic approaches that the organization can take to training
and development analysis of the organization’s needs, management and staff
attitudes and beliefs

Binna Kandola (2000) useful evaluation of training effectiveness particularly

JOB SATISFACTION in the department of soft skills evaluation techniques and then outlines
model
Knuckey and Johnston (2002) leaders” engaging in training compared with
laggers .Investors in People”

13
CHAPTER 3 RESEARCH METHODOLOGY
There are various kinds of research methods or techniques which can be opted for a project.
It is vital because the use of diverse techniques will convey different results. The research thoughts
usually have divers’ types which include: applied or practical research and basic or fundamental
research, descriptive, exploratory, etc. The basic or fundamental to any research moves fort to
acquire answers for personal interest and on the base to acquire knowledge, applied research
primarily concern real world problem which focuses on finding the solutions for practical issue.
(Van der velde et al 2004) This thesis belongs to the Descriptive type; it is a valid method for
researching specific subjects and as a precursor to more quantitative studies.

3.1 CONCEPTUAL FRAMEWORK:

The research study conceptualized out on the factors (competency development,learning and
development, leadership skill development, team building ,problem solving skill) as independent
variables and job satisfaction as dependent variables as illustrated below. The variables selected in this
study are from a number of previous studies, enabling this thesis to accommodate a broader view of the
existing literature.

COMPETENCY
DEVELOPMENT

LEARNING AND
DEVELOPMENT

JOB
LEADERSHIP SKILL SATISFACTION
DEVELOPMENT

TEAM BUILDING

PROBLEM SOLVING SKILLS

INDEPENDENT VARIABLES DEPENDENT VARIABLE

Figure 3.1 Conceptual framework

14
3.2 RESEARCH DESIGN
The company must analyze how well some training can influence employee and identify
those factors that can trigger higher performance most. Questionnaires and interviews were
conducted with employees and management to get their views on what they consider on the
effectiveness of training in the organization behalf of employees . In essence their views could be
summaries into financial and non financial motivators as well as tangible and non tangible. These
includes: competency development , learning and development ,leadership skill development,team
building,problem solving.
The major part of this thesis uses a quantitative method, as the aim is focus on gathering
information or opinions about the many factors in a systematic manner (in this case a
questionnaire) in order to identify the factor that the effects of training and development. However,
a quantitative approach is considered most suitable when analyzing the results between the
different subgroups of respondents as the results are mainly presented.

Descriptive research design

The type of research chosen for the study is descriptive research. In descriptive research
various parameters will be chosen and analyzing the variations between these parameters. This was
done with an objective to find out the effectiveness of training.

Descriptive research design is a scientific method which involves observing and describing
the behavior of a subject without influencing it in any way. Descriptive research design is a valid
method for researching specific subjects and as a precursor to more quantitative studies. Whilst
there are some valid concerns about the statistical validity, as long as the limitations are
understood by the researcher, this type of study is an invaluable scientific tool.

3.3 SAMPLING DESIGN

3.3.1 Sampling Method

There are 150 employees working in SHAA EXPORTS PVT LIMITED located in KOTTAKKAL.
So population for this study is definite. Hence simple random sampling can be used for this study.

3.3.2 Population

Population for this study is the total number of employees at SHAA EXPORTS , Kottakkal which
is 150 including employees from 7 departments. Each having the following number of employees

15
HR (20), Marketing (30), finance and accounts (40), Designing (20), Purchase (20), Production
(10), Store (10) resulting in a total of 150 and it is chosen as population for this study.

3.3.3 Sample Size determination

For a population of 150 at 5% margin of error and 95% confidence level the sample size is
calculated as 109 and researcher collected 109 data’s from respondents. After omission and
screening the researcher found 100 valid data for this study.

3.4 DATA COLLECTION INSTRUMENT

The data collected for the study is mainly through the distribution of questionnaire; to be
precise the data collected for study was both primary and secondary sources.

Primary Data:

Primary data is the information collected for the first time; there are several methods in
which the data is complied. In this project it was obtained by mean of questionnaires.
Questionnaire was prepared and distributed to the employees of SHAA EXPORTS PVT Limited
located in Kottakkal

Secondary Data:

Secondary data needed for conducting research work were collected from company websites,
library and search engines.

Research Instrument:

In this study the primary data was collected by survey technique. In this we distributed the
questionnaires to the respondents. The researcher structured the questionnaire in the form of:

1. Close Ended Questions

2. Multiple Choice Questions
3. Five point Likert scale

16
3.5 MEASUREMENT SCALE AND TOOLS
The data collected was analyzed by employing the following statistical technique:

Data analysis Tools

The data collected from the primary sourced were arranged sequentially and tabulated in
the systematic order.

Tools

Data collected through questionnaire were presented in a master table. From the master table,
sub-tables were prepared. In order to analysis and interpretation of the data simple statistical tools
like

1. Frequency Analysis - Frequency analysis is used to find out the percentage of each demographic
variable.
2. Correlation Analysis - It is used to find out the relationship between independent and dependent
variable.
3. ANOVA – It is used to find out whether there is a significant difference between independent and
dependent variable and demographic variable.
4. Regression Analysis – It is used to infer causal relationships between the independent and
dependent variables.

17