This research explores the impact of training and development programs on employee efficiency within the engineering industry, specifically focusing on engineering units in Maharashtra, India. The study identifies shortcomings in traditional training methods and emphasizes the need for tailored programs that enhance organizational productivity and employee competence. Recommendations are provided to improve training effectiveness, including the establishment of job descriptions, skill mapping, and greater involvement of employees in identifying training needs.

1. 1
Impact of Training and Development
Programs on the Efficiencies of the
Employees in the Engineering Industry
Abstract submitted to
Dr. Babasaheb Ambedkar Marathwada
University,
Aurangabad, Maharashtra.
For the award of the Degree of
Doctor of Philosophy (PhD)
In Management Science
By
Sudheer Prabhakar Vaidya
B.com, M.S.W.PGDHRM.
Under the Guidance of
Dr. G.A. Nikam
M.com,M.Phil., PhD.
Research Centre
Dr. Babasaheb Ambedkar Marathwada University,
Aurangabad, Maharashtra.
2011

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CONTENTS
SR NO PARTICULARS PAGE NO
1 Introduction 03
2 Why Engineering Industry 04
3 Objectives of the Study 08
4 Research Methodology 09
5 Scope of study 11
6 Period of Study 11
7 Selection of Sample 11
8 Framing of Hypothesis 12
9 Limitation to Study 13
10 Presentation of Study 14
11 Findings 15
12 Recommendations 17
13 Bibliography 19

3. 3
Introduction
The business performance rises or falls with the flow of
human performances. HR professionals lead the search for
ways to enhance the effectiveness of employees in their
jobs today and prepare them for tomorrow. With this
object the training programs grown in corporate.
Training has made significant contribution to development
of all kinds. Training is essential however doubts have
been raised over its contribution in practice.
To meet the requirements of globalization, the industry
has to develop competency base within the organization
which can take up the global competition.
It is generally argued that training plays a vital role in
developing the manpower, but does it actually happening?
Despite of lot of training activity the required results are
not observed on the shop floor, this fact has prompted the
researcher to select this topic for research and further
investigation.
The need of the training has acquired critical importance in
the context of the rapid technological changes as well as
social transformation.
Trained manpower is required at every stage of the above
mentioned tasks. Fast advancement of technology is making
every sphere of the industry more and more sophisticated,

4. 4
requiring specially skilled engineers, supervisors, artisans,
managers etc are required to manage the industry.
Thus the importance of training can not be overlooked.
However, it is generally observed that the impact of training
in actual working on shop floor doesn’t remain evident.
Hence there is a need to study the impact of training and
development programs on the efficiencies of the employees.
Further there is also a need to study as to why the
traditional training programs are unable to deliver required
results.
WHY ENGINEERING INDUSTRY
The engineering industry has been titled the ‘engines of
growth’. The tremendous impact and influence it has on
the economy, can be seen from the economic scenario the
world over. India too has found this industry very
responsive to take up any stimulus to growth. Importance
of engineering industry in India can be gauged from the
fact that it employs over 4 million skilled and semi skilled
workers. The engineering industry accounts for 12% of
India’s GDP. Engineering goods enjoy 30.5 % weight in the
index of industrial production, 29.9 % share of total
investment; and 62.8 % share in foreign collaboration.
Engineering exports accounts for over 20% of India’s total
exports. It is the largest foreign exchange earner for the
country.
The growing trends of engineering goods can be seen from
the following graph:

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11.55
16.43
20.34
27.11
33.28
0
5
10
15
20
25
30
35BILLIONUSD
2003-04 2004-05 2005-06 2006-07 2007-08
YEAR
EXPORTS OF ENGINEERING GOODS
The above graph shows that :in the year 2004 -05 the
exports of engineering goods was 11.55 US Billion Doll ars,
which has reached at 33.28 US Billion Dollars in the year
2007-08.
It is an international recognition of India’s emergence as a
globally competitive manufacturing hub for auto
component outsourcing. Today 60% or more of total auto
component exports from India are to the highly quality
conscious US and European markets.
The engineering industry in India has seen unprecedented
growth in past 3 years due to increased investments in
infrastructure development and industrial production. The
industry can be broadly divided in to heavy engineering
and light engineering segments.
India is being preferred by global manufacturing
companies as an outsourcing destination due to its lower

6. 6
labor cost and better engineering and designing
capabilities.
The engineering sector is the largest segment of Indian
industry. India has a strong engineering and capital goods
base.
The engineering sector’s future is promising. Drivers like
infrastructure development, industrial growth and
favorable policy regulations will ensure growth in
manufacturing. Emerging trends such as outsourcing of
engineering services can provide new opportunities for
quantum growth. Engineering and design services such as
new product designing, product improvement,
maintenance, and designing man ufacturing systems are
increasingly getting outsourced to countries like India.
With the above background of engineering industry in
India, learning new techniques through various means has
become the buzz word in the industry which enables the
industry to compete globally. In the entire sector of
engineering industry everyday new techniques are adopted
and to become familiar to the change management,
training has become continuous activity.
This study particularly deals with the Impact of Training
and Development programs on the Efficiencies of
Employees in the Engineering Industry with specific
reference to the engineering units located in Aurangabad,
Ahmadnagar, and Solapur of Maharashtra State.

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The researcher has selected six engineering units to s tudy
the specific impact of training and development on the
efficiencies of the employees.
The sample industries have a history of minimum ten
years and this period is enough to assess the impact of
training and development programs on the efficiencies of
the employees.
Table No 1 describes the number of employees from
respective six sample units, who responded to the survey.
While deciding the number of respondents, it is ensured
that responses from minimum 10% of the total strength of
each unit are obtained. Further all functional areas like
IT, HR, Marketing, Materials, Manufacturing,
Maintenance, Quality Assurance, Research &
Development, are covered to have representative opinions
from all functions of the unit.
Table No 1 :

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72
52
45
50
65
40
0
10
20
30
40
50
60
70
80
NOOFRESPONDENTS
Kirloskar
Ferrous
HoganasI
Ltd
Laxmi
Udyaog
RLSteels
Group
Endurance
Tech
Badve
Group
RESPONDENT'S ORGANIZATION
The survey was conducted of 324 employees and 41
department heads from the above six industrial groups
namely:
M/s Kirloskar Ferrous Industries Limited Solapur (72
respondents),
Hoganas India limited Ahmadnagar (52 respondents),
Laxmi Udyog Aurangabad (45 respondents ),
R L Steels Group of Industries Aurangabad(50
respondents), Endurance Technologies Private Limited
Aurangabad (65 respondents) and
Badve Group Aurangabad (40 respondents).
OBJECTIVES OF THE STUDY
Many people know that training is important – because at
one time or another in any form all have been valuably
trained in something or trained some one else to do
something useful. Yet the basic knowledge is not reflected in
the world of work.

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The present training and development programs which are
organized by the organizations are observed to be less
effective or ineffective. The results are very slow. The
present system of identifying and imparting training is also
slow. Once in a year the performance appraisal is done.
Competency gaps are identified between one to eleven
months of its prevalence.
In today’s rapid changing world time gaps are costly.
Further, the conventional training which is being imparted is
generally has a misguided vision, less or no leadership
commitments, wrong teams are selected, environment of the
organization is not conducive etc.
With these concepts about the training, it’s the proper time
to evolve the programs of training and development which
will contribute in achieving the organizational goals.
The changes brought about by the globalization,
technological innovation, increasing competition and growth
through expansion, diversification and acquisitions, poses
serious challenges to the organization in different areas of
management. The human resource is the most important and
valuable resource of an organization. All other resources can
contribute towards the effectiveness of the organization only
when they are managed by motivated and committed people.
Under the circumstance it is vital to design the training
program for the employee which after imparting, in turn will
contribute self as well as organizational growth in years to

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come. The programs must create competence, commitments
and culture, in Indian situations.
RESEARCH METHODOLOGY
The study is based on both the primary data as well as the
secondary data. The primary data is collected by preparing
the questionnaire for the employees who had participated in
the training programs and another set of questions was
made to understand the impact of training which is be ing
observed by the immediate superiors under whom the
employees are working and are responsible to monitor the
changes in the working behavior of an employee before and
after the training. From the selected sample industries the
researcher has collected responses from 324 numbers of
participants and 41 numbers of department heads. The
opinions of senior professionals, leaders of various trade
union, training consultants and CEO’s are taken with
respect to training .
The secondary data were also collected from various books,
journals, periodicals, articles published in news papers and
magazines, internet. The government reports published time
to time were also referred.
The researcher visited all sample organizations wherein the
survey was carried out. Certain numbers of department
heads were interviewed by the researcher in person to have a
feel of sensitivity of the subject. The researcher has about
27 years of experience in the same field of personnel
management, industrial relations, administration, and

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training in steel plants, forging units rolling mills etc.
Therefore, the researcher has some knowledge about the
training and development activity which is being done in this
sector of industry. The researcher is hopeful that the
conclusions, suggestions which he is proposing shall help
the training / HR practitioners, in the areas of identification
of training needs, methods for imparting the training, and
evaluation of training.
SCOPE OF STUDY
The study is restricted to the medium size engineering units
engaged in steel products. The engineering units are selected
in the area industrial area of Aurangabad, Ahmadnagar and
Solapur, districts of Maharashtra state.
PERIOD OF THE STUDY
The researcher has decided to study the impact of training
in such engineering units which have commenced their
activities on or before year 1991 – 1992. The 10 year’s of
industry existence / functioning is quite adequate to assess
the impact of training and development programs on the
efficiency of the employees.
SELECTION OF SAMPLE
There are number of engineering units located in the state of
Maharashtra, but the researcher has decided to include six
engineering units namely Kirloskar Ferrous Industries
Limited, R L Steels limited, Hoganas India limited,

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Endurance Technologies Private Limited, Badve Group of
Industries, Laxmi Udyog Privated Limited, which are engaged
in the similar manufacturing of steel / forged steel products
/ automobile components.
Out of these six industries two industries are
multinationals. The nature of these manufacturing units is
unique, hence it is intentionally decided to select only these
six units which had standing of 10 years and above, located
in Aurangabad, Ahmadnagar, and Solapur.
FRAMING OF HYPOTHESIS
The majority of the present training programs are not
suitable for the employees of Indian cultural background.
In the new millennium, every thing will move far more
rapidly then ever before. Ideas and knowledge will play
greater role than capital, strategy, structure and systems on
which organizations were demanding, have to change their
focus towards purpose, process and people. Purpose is the
shared ambitions, values and identities in an organization;
process looks at the entrepreneurial integration and renewal
of process. The focus of organization’s will for peoples
competencies, commitment, passionate and aggressive
involvement and sense of belonging and being a part of team
which believes that nothing is impossible.
Thus, it becomes a vital issue as to what exactly should be
the course of action in the area of training which will
prepare the Indian employee to take the challenges posed by

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the open economy and how he can lead the world with the
strong base of deep rooted traditional values.
With this background, certain questions needs study to have
answers for the same. These are :
1 Training always helps to improve the efficiency of
an employee which leads to achieve the higher
productivity at organizational level.
2 Training helps the employee to cope up with the
new technology; which helps to reduce the wastages
of labor and resources.
3 Training leads to increase profit margins of the
organization and also helps to increase the earnings
of an individual.
4 Training improves the mutual trust between
employer and employee
5 Training does not only reduces the stress of the
employee but also prepares the innovative mind of
an individual.
LIMITATION TO STUDY
The study concentrates on judging the impact of training
and development programs which helps to improv e the
efficiencies of the employees in engineering industry. Again
to predict the behavior of an employee and their attitude is
not an easy task. Hence, the results drawn on the basis of
the employee may not be always 100% true. The inferences
can be true nearing to 100% but can not be 100% always.

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There are number of engineering units in the state of
Maharashtra but the researcher has focused his attention
restricted to steel manufacturing and their components only.
Since the study is restricted to above six industries only, the
outcome / results / observations made by the researcher
shall be with respect to these industries only and may not be
applicable to other industries.
Limitations of the study can be summarized as under:
1 Engineering units are selected for study from
Maharashtra state only.
2 Six units from three districts of Maharashtra are
included in present study.
3 Units having a life of 10 years and above are selected
as samples.
4 The research study is related only to training and
development programs of the sample six companies.
5 The study is confined to the selected industries.
6 The findings of the survey may not be applicable to
all engineering industry.
7 The opinions collected through survey from the
individual employees cannot be said as universal and
are true for all employees.
PRESENTATION OF STUDY
The study is being presented in five chapters :
1 Chapter I covers the introduction, objectives,
research methodology, scope, tools and techniques

15. 15
used for analysis, selection of sample, hypothesis,
and limitation of the study.
2 Chapter II contains the overall review of Literature.
3 Chapter III contains the profile of engineering units
in general and six sample units in particular covered
in the study.
4 Chapter IV discusses the outcome of survey and
analysis of data collected through survey.
5 Chapter V contains summary, findings and
recommendations.
FINDINGS & RECOMMENDATIONS
Based on the analysis, the study indicates the positive
impact of training and development programs on the
efficiencies of the employees in engineering industry.
FINDINGS
1 Organizational needs are met by imparting training.
2 Organizing the training and developmental programs is a
regular activity.
3 Training activity is done in unplanned way.
4 Non availability of job description for all the positions.
5 Employees are involved in training need identification
process.
6 Organizations are having predetermined targets for
training and development programs.
7 Organizations are giving more thrust on soft skill
development programs.

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8 Training helps in value addition.
9 Training results in efficiency increase.
10 Training helps to increase production.
11 Training helps to get additional knowledge.
12 Additional knowledge through training helps in daily
working.
13 Training reduces wastages.
14 Training helps to use machines appropriately.
15 Training reduces stress.
16 Training helps in preventing accidents.
17 Training creates innovative mind set.
18 Training increases employability.
19 Training improves mutual trust.
20 Training helps in improving industrial relations.
21 Training promotes team working.
22 Training helps to achieve the objectives of organizations
and individual employees.
RECOMMENDATIONS
1 Job description for all the positions is must.
2 Skill matrix and competency mapping.
3 Role of first line supervisors.
4 Need to create learning environment.
5 Creating avenues at shop floor to implement learning.
6 Yearly training targets for HR department.
7 Need to prepare training calendar.
8 Need to involve employee while identifying his/her
training needs/learning needs.
9 Need to design appropriate training course material.

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10 Need to provide appropriate faculty for imparting
training.
11 Need to have appropriate objectives for training
programs.
12 Need to give more thrust on hard skill development
programs.
13 Need to concentrate on local needs.
14 Need to monitor and evaluate the effectiveness of training
and development programs.
15 Need to involve supervisory staff in training committees.
16 Need to modify recruitment policies.
17 Need to review compensation and benefits of supervisory
staff.
18 Need to face existing and future challenges.
19 Need to develop new format of training.
20 Need to adopt a system that gets participation from
Government, Industry, and Trade Unions, as and when
required.
21 Need to change the approach of Trade Union movement.
22 Need to concentrate on Indian Ethos.
23 Need to understand differences between Western culture
and Indian culture before deciding the subjects of soft
skill development programs.
24 Training should create excellence.
25 Need to teach TQM in Indian way.
26 Need to teach stress management through Indian
concepts.
27 Need to adopt value based management in global change.
The global competition and swiftness of changes
emphasize the importance human capital within

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organization, as well as the swiftness and ways of
knowledge gaining of that capital. In the economy where
uncertainty is the only certainty, knowledge is becoming a
reliable source of competitive advantage. Pre sent day
competition is based on knowledge possessing and
efficient knowledge management. Modern organizations,
therefore use their resources like money, time, energy,
information etc for permanent training and advancement
of their employees.
Organizations which are constantly creating new
knowledge, extending it through the entire organization
and implementing it quickly inside the new technologies,
develop good products and excellent service.
Organization’s goal is to achieve business excellence, for
which various interventions are used. Training is the most
important intervention, without which the there can be a
question of survival of the organization itself.
Indian employee has a different cultural background. The
training imparted in UK,US may not be effective in India.
The training organizers should ensure that through
training programs ownership is created amongst the minds
of the employees. Once this ownership is created,
employee starts caring / showing concern, and this
approach shall bring changes in the bottom line of the
organization.
At organizational level, their has to be a structured
methods for evaluating objectively the impact of training.

19. 19
This method in turn will ascertain the return on
investment of training.
The concept behind this research work is to understand
the impact of training and development programs on the
efficiencies of the employees; transfer of learning’s to
actual shop floor working; reasons for not achieving the
objectives of the training programs; and suggesting th e
training programs which may be suitable in Indian
cultural environment.
The researcher hopes that this study will help the HR
professionals to think differently, find training courses
which will suit the Indian cultural and the employee will
receive the value addition for self as well as
organizational growth.
DR G A NIKAM S P Vaidya
Research Guide Research Student.

20. 20
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