This document discusses training programs in India, issues faced by small and medium enterprises (SMEs) in employee training, and potential solutions. It outlines various government-run training programs and notes issues SMEs face like high costs, difficulty finding suitable courses, and reluctance to fund training. Potential solutions proposed include e-learning, training vouchers, equipping SMEs with HR tools, and knowledge/resource pooling through SME networks.

1. Presented By:
Sumit Singh
Semester III (MBA – M52)
MONIRBA, University of Allahabad

2.  What is training?
 Need forTraining
 Advantages ofTraining
 Training Programmes in India
 Issues inTraining
 Solutions toTraining Issues

3.  Training is the process of increasing the
knowledge, skills, aptitude and abilities of an
employee for doing the specific job in an
efficient manner.
 It ensures that your workforce will continue
to develop the skills necessary for success
both now and in the future.

4.  The rapid technological changes create new
job opportunities.
 These new jobs demand certain special skills
that need to be developed in all employees
through appropriate and best operating
methods.

5.  Higher Performance
 Lesser learning period
 Uniformity of procedures
 Economy of materials and equipment
 Less supervision
 High Morale
 Participative Management

6.  Training Programmes by Central Government
 Skill Development andTraining Programmes of
Central Government
 NationalVocationalTraining Information Service of
Ministry of Labour
 Training Programmes of SIDBI
 Entrepreneurship Development Programme (EDP)
 Small Industries Management Programme (SIMAP)
 Skill-cum-Technology Upgradation Programme
(STUP)

7.  Training Programmes by NSIC
 NSIC provides technical support to SSIs through
'NSICTechnical Services Centres' (NTSCs) and a
number of sub centres.
 In addition to this access to latest information in
connection with technology upgradation and its
transfer is provided to SSIs through the
'TechnologyTransfer Centre' at New Delhi.

8.  VariousTraining Programmes of MSME-DIs
 Entrepreneurship Skill Development Programmes
(ESDP)
 Business Skill Development Programmes (BSDP)
 Management Development Programmes (MDP)
 Industrial Motivation Campaigns (IMCs)
 Vocational and EducationTraining

9.  Training Programmes by Other Institutes
 National Institute of Micro, Small and Medium
Enterprises (NIMSME), Hyderabad
 National Institute for Entrepreneurship and Small
Business Development (NIESBUD), NOIDA
 Micro, Small & Medium EnterprisesTraining
Institute (MSME-TI),Tiruvalla (Formerly SEPTI)
 Indian Institute of Entrepreneurship (IIE),
Guwahati

10.  Central FootwearTraining Centres, Chennai and
Agra
 Fragrance and Flavour Development Centre,
Kannauj
 Electronics Service &Training Centre, Ram Nagar
 Institute for Design of Electrical Measuring
Instruments, Mumbai (IDEMI)

11. High training cost per employee
 SMEs have small number of employees and
limited resources required for training as
compared to large enterprises
 They find it difficult to organize in-house
training programs
 Thus, SMEs do not take part in training
programs

12. Difficulties in organizing a suitable training
course
 An SME worker generally carries out multiple
roles and possess a broader range of skills
 An external training institute generally offers
standardized training courses
 Its difficult for SME to find courses suitable
for its capacity and resources

13. Institutional limitations of SMEs
 SMEs could identify some priority training needs
 But lack economies of scale and specialized staff
members who could find suitable outside
training institutions, negotiate with them, enter
into a contract, monitor their training processes,
evaluate training effectiveness, and/or handle
the cumbersome administrative processes for
reimbursement of their training expenses

14. Low level of SME participation in job skills
development programs
 Lack of specialised staff working exclusively
on the planning, organization, and
management of worker training
 SMEs are often unaware of the Job Skills
development programmes to be conducted
nearby

15. Disadvantaged in launching training programs
for their workers in time
 SMEs are in general constrained by their
capacity to adjust to changing market
conditions (demand, technology, prices, etc.)
due to their financial, human, and knowledge
constraints

16. Reluctant to provide or finance training with
their own funds
 Training is an investment in human capital
over a relatively long gestation period, and
the returns to the investment accrue over a
long period.
 SMEs have limited financial and credit
situation, thus, merits government
assistance.

17.  Introduction of E-Learning
 Advantages include:
 Reduced travel costs
 Training needs being met at a more appropriate
time for the organization and its employees
 Not having to replace employees during work
hours
 Faster distribution of training materials
 More consistent delivery of course contents

18.  Introduction ofTrainingVouchers by the
Government
 Advantages include:
 Make the process simpler while partly or
completely financing the cost of training
 Are not bound to any specific course or institution
and thus provide freedom of choice
 Can target a specific category of workers with
training needs

19.  Equipping SMEs with Human Resource tools
to modify their perception of training needs
 Everything starts with a good diagnosis. If
a diagnosis is offered at no cost, employers
are much more likely to be interested.
 Human resources and the enhancement of
skills can be supported and improved by
external advisory services, diagnostic tools
and other practical instruments.

20.  ‘Flexibility coaches’, ‘skills brokers’,
mediators and facilitators can also have a
positive influence on the long-term goals of
SMEs regarding training.
 Such functions can also be organised
internally, for instance by an employee who is
entrusted with the role of identifying the
need for training and skills development in
the company and who can make suggestions
for applicable solutions.

21.  Resource and Knowledge Pooling
 Establishment of SME networks and clusters
 Initiatives and tools to inform SME managers,
entrepreneurs and workers about existing
opportunities, thereby also raising the
awareness of training opportunities.