Trainingand Development in Hero Moto Corp

7/28/2019 Trainingand Development in Hero Moto Corp

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AUTO INDUSTRY- A REVIEW

INTRODUCTION

The Rs. 5500 crore Indian two wheeler segment is the second largest market fin the

world after China. Indias two wheeler production is the third largest in the world

after Japan and China. India has a welldeveloped two wheeler market with around

25 million households owning two-wheeler. The Indian two wheeler industry made

a modest beginning in the early 1950 when Automobile Product of India ( API )

started manufacturing scooter in India. Until 1958. API and Enfield( motorcycle)

were the only two in production. In 1948, Bajaj auto began trading in imported

Vespa scooter and the three wheeler- finally, in 1960s. it set up shop to

manufacturer them in technical collaboration with piggaio of Italy. The agreement

expired in 1971. In the initial stages, the scooters segment was regulated regime,

foreign company was not allowed to operate in India, and waiting time for getting

Bajaj scooters was as high as 12 years. Java, and escort. While the Enfield bullet

was a four strokes bike, the Java and Rajdoot were two-strokes bikes. The

motorcycles industry was originally dominated by Enfield with 350 cc bikes. The

motorcycles industry was cc segment. The two wheelers segment was opened up to

foreign competition in the mid 1980s which saw the entry of the Japanese

manufactures into the count

CLASSIFICATION OF THE INDUSTRY

The two-wheeler segment can be categorized into the scooter, mopeds, and

motorcycles. Motorcycles: this segment has shown the best performance in the

recent years. The market leaders in this section are Bajaj Auto. TVS, Mahindra,


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Hero Moto Corp (previously Hero Honda). [The splendor is the most popular

segment among motorcycles.]

Two Wheeler Industry

It wasnt an easy year for the two wheeler industry. Rising interest rates and the

economic slowdown resulted in delayed consumer decision making and a rise in

loan defaults. Over the course of the year, banks withdrew financing facilities from

satellite towns. The share of financing, which had increased rapidly to 50-60 per

cent of the total retail sales by early 2007, has now come down to below 30 per

This came as a major setback for the two-wheeler industry. Ongoing government

investments very clearly emphasis inclusive growth through improved

connectivity, job-creation and improving quality of life. The rural road outlay has

been upped by close to 60 per cent, the budget for the Urban Renewal Mission has

been hiked by 87 per cent, and fund allocation to the ongoing National Highways

program has been upped by 23 per cent. Importantly, India has added fresh impetus

to its flagship job creation program for rural India: the National Rural Employment

Guarantee Scheme. During 2008-09, this scheme, which provides 100 guaranteed

days of work a day for the countrys rural poor, provided employment

opportunities to more than 44 million households last year; a year ago, 33 million

households were covered. During the year, there have been important

developments in two wheeler industry. The competition has strengthened though

there are hardly any new entrants into the industry. There is an increasing emphasis

on price and this has led to cost cutting efforts all across cent. the industry, thereby,making the customer an ultimate beneficiary. The trend also saw introduction of

new motorcycles with capacity ranging from 100 to 250cc bikes. We anticipate

that many more new models will be launched during the year and provide

customers plenty of choice at competitive prices. Businesses cannot consistently


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grow at 25-30 per cent. Each business has a tendency to taper and plateau after

attaining a particular size. An annual growth rate of 10-12 per cent over a period of

time is extremely healthy. The TCS study rankings are conducted at the motorcycle

segment level to provide comparisons among similar groups of motorcycles.

Motorcycles ranking highest in their respective segments for TCS are: Hero Moto

Corp (previously Hero Honda) splendor plus (best standard motorcycle segment);

Bajaj pulser (best executive motorcycle segment); Hero Moto Corp (previously

Hero Honda) karizma (best premium motorcycle segment); and Royal Enfield

Bullet Electra (best cruiser motorcycle segment). "The relatively low score for the

executive segment indicates that most manufacturers have fallen short of meeting

the high expectations of these buyers,".


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COMPANY PROFILE

The Hero Moto Corp (previously Hero Honda) story began with a simple vision

the vision of a mobile and an empowered India, powered by Hero Moto Corp(previously Hero Honda). This vision was driven by Hero Moto Corp (previously

Hero Honda)'s commitment to customer, quality and excellence, and while doing

so, maintain the highest standards of ethics and societal responsibilities. Twenty

five years and 25 million two wheelers later, Hero Moto Corp (previously Hero

Honda) is closer to fulfilling this dream. This vision is the driving force behind

everything that we do at Hero Moto Corp (previously Hero Honda). We

understood that the fastest way to turn that dream into a reality is by remaining

focused on that vision. There were many unknowns but we kept faith, and today,

Hero Moto Corp (previously Hero Honda) has been the largest two wheeler

company in the world for eight consecutive years. Our growth has kept

compounding. The company crossed the ten million unit milestone over a 19-year

span. In the new millennium, Hero Moto Corp (previously Hero Honda) has scaled

this to 15 million units in just five years! In fact, during the year in review, Hero

Moto Corp (previously Hero Honda) sold more two wheelers than the second, third

and fourth placed two wheeler company put together. With Hero Moto Corp

(previously Hero Honda), the domestic two wheeler market was able to show

positive growth during the year in review. Without Hero Moto Corp (previously

Hero Honda), the domestic market would have actually shrunk. Over the course of

two and a half decades, and three successive joint venture agreements later, bothpartners have fine-tuned and perfected their roles as joint venture partners. What

the two partners did was something quite basic. They simply stuck to their

respective strengths. As one of the world's technology leaders in the automotive

sector, Honda has been able to consistently provide technical knowhow, design


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specifications and R&D innovations. This has led to the development of world

class, value - for- money motorcycles and scooters for the Indian market. On its

part, the Hero Group has taken on the singular and onerous responsibility of

creating world-class manufacturing facilities with robust processes, building the

supply chain, setting up an extensive distribution networks and providing insights

into the mind of the Indian customer. Since both partners continue to focus on their

respective strengths, they have been able to complement each other. In the process,

Hero Moto Corp (previously Hero Honda) is recognized today as one of the most

successful joint ventures in the world. It is therefore no surprise that there are more

Hero Moto Corp (previously Hero Honda) bikes on this country's roads than the

total population of some European countries put together! The company's meteoric

growth in the two-wheeler market in India stems from an intrinsic ability to reach

out and come closer to its customers, with every passing year. Hero Moto Corp

(previously Hero Honda)'s bikes are sold and serviced through a network of over

3500 customer touch points, comprising a mix of dealers, service centres and

stockists located across rural and urban India. Hero Moto Corp (previously Hero

Honda) has built two world-class manufacturing facilities at Dharuhera and

Gurgaon in Haryana, and its third and most sophisticated plant at Haridwar has just

completed a full year of operations. It is difficult to imagine that all this has

happened in the span of just two and a half decades! The best is yet to come.

During the year in review, Hero Moto Corp (previously Hero Honda) powered its

way in a market that, for all practical purposes, was feeling the full effects of the

economic slowdown in India. With an economic recovery now clearly on the

cards, Hero Moto Corp (previously Hero Honda) is all set to ride into another

summit. As Brijmohan Lall Munjal, the Chairman, Hero Moto Corp (previously

Hero Honda) Motors succinctly puts it, "We pioneered India's two wheeler


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industry, we've steered it through difficult times; now it is our responsibility to set

the pace again.''

New Models The company has a large portfolio of brands, with the moneyspinners

being mainly Splendor Plus (the world's largest selling bike) and Passion.

However, the company claims it was the launch of the 150cc CBZ and 225cc

KARIZMA which established Hero Moto Corp (previously Hero Honda) as an

inspirational brand. "The launch of CBZ and KARIZMA got us into a different

league altogether. Although the sales are just about 3,000 a month, it made us an

overall bike company, Hero Moto Corp (previously Hero Honda) would launch a

new model of the KARIZMA by the end of current year, the Managing Director,

Mr. Brijmohanlal Munjal, said. Meanwhile, the company is yet to decide on the

location of its proposed Fourth manufacturing unit. The feasibility study is on'', he

said, adding that the new plant was likely to come up in the next 18 months. New

launches are likely to help Hero Moto Corp (previously Hero Honda) gain a market

share in the coming quarters. Hero Moto Corp (previously Hero Honda) Motors

Ltd, has launched a new 100-cc four-stroke bike, CD deluxe and Dawn is likely tobe phased out of the market once the new model sells ``10,000 plus'' units per

month. Sales Performance Hero Moto Corp (previously Hero Honda) went against

the grain and created a growth trajectory all of its own. Sales of the company grew

by over 11 per cent in volume terms and in value terms; they grew by over 19 per

cent. Effectively, this helped the company end the year with a market share of

around 60 per cent. This robust performance helped the company increase earnings

margin 120 basis pointsa remarkable feat, considering that elsewhere in the

world, the automobile industry went through its worst year in recent history.

Hero Moto Corp (previously Hero Honda)s performance in its silver jubilee year

helped it retain its position as the worlds largest two wheeler company for the


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eighth year in a row. It also helped the company cross the 25 million unit mark

becoming the first company in India to reach this milestone. Last year, two new

models were launched, namely CBZ XTREME and HUNK to address super-style

and economy segments. Passion pro has found its position firm amongst Indian

models, only next to Splendor, the largest selling bike in the world in terms of sales

performance. CBZ was re-launched as CBZ XTREME, in April 2007, with

changes and value additions to cater to specific needs of the customers. Reportedly

CBZ XTREME is doing well in its segments and has sold over 10,000 units in the

initial months itself. Hero Moto Corp (previously Hero Honda) has targeted a sale

of over 3 million bikes for the year 2009-10. This effort is supplemented by a

major launch this year, in October end; this bike will have some exclusive features

and will be in the 200cc plus range. There are some ambitious programmes of

launching a new range of bikes with technical support from Honda in the coming

years. With a slew of such measures the capacity available at present locations can

at best support two-million production target at the existing plants. The company,

therefore, is looking at the possibility of setting up a third plant to meet the future

demand and for which techno-economic study is in progress.

New Initiatives Customer and customer satisfaction is the purpose of our being an

entity. To increasingly understand him and make him part of our ongoing business.

Customer related initiative has been the increase of warranty period to three years

since July 2008. This has attracted a great deal of customer attention. During the

year the company has added nearly a hundred dealerships and SSPs. In terms of

sheer numbers, the network has grown by 16% during the year 2008-09. We would

endeavor to increase our reach to every corner of this country. Plans for the future

In the previous year, the domestic two-wheeler industry entered a period of de-

growth. However, this was arrested in 2008-09, largely on the back of Hero Moto


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Corp (previously Hero Honda)'s performance. After the blip of last year, the two-

wheeler industry went back to a growth phase, largely driven by Hero Moto Corp

(previously Hero Honda) and exports. The industry clocked total volumes of 8.5

million during the year in review, a growth of 5 per cent compared to a fall of 5 per

cent in the previous year. The pace of growth was lower in the domestic market,

where the industry clocked sales of 7.43 million, a rise of only 2.60 per cent. This,

however, was a significant improvement over previous year when the industry had

shrunk by 8 per cent. Motorcycles continue to constitute the largest chunk of the

two wheeler industry, and during the year in review, accounted for four fifth of

sales. Interestingly, for the second year in succession, scooters increased their

share in the two-wheeler pie from 14 per cent to 16 per cent. This is clearly a trend

reversal from the last 10 years, where the share of scooters in the two-wheeler pie

had been shrinking. Changing lifestyles among women, and the introduction of

feature-rich, high-quality scooters possibly has much to do with the revival in

demand

The entry segmentmade up of basic 100 cc bikes -Had started slowing two yearsago, and during the year in review, sales in this segment were down by more than

15 per cent. This could be attributed to the fact that deluxe segment bikes have

become affordable on account of a 4 per cent excise cut, 1 per cent reduction in

CST and the special package of reduction in excise duty in December, which most

manufacturers passed on to the consumers. The deluxe segment-made up of value

for money and feature-rich bikes in the 100-125 cc category-grew by 15.2 per cent.

The 125-250 cc category-grew at 8.8 per cent. The pace of growth has fallen from

last year's levels. There is no doubt that the higher interest rates have brought down

growth. Nevertheless, this segment was still able to clock a growth rate in high

single digits mainly because of the excitement caused by a slew of new models that


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came into this segment during the year. The bigger story, of course, is that buyers

in small-town India and rural India, as well as employees of the state and Central

government, were relatively less affected by the slowdown, and this benefitted the

two wheeler industry.

The legend of Hero Moto Corp (previously Hero Honda)

What started out as a Joint Venture between Hero Group, the world's largest

bicycle manufacturers and the Honda Motor Company of Japan, has today become

the World's single largest two wheeler Company. Coming into existence on

January 19, 1984, Hero Moto Corp (previously Hero Honda) Motors Limited gave

India nothing less than a revolution on two-wheels, made even more famous by the

'Fill it - Shut it - Forget it ' campaign. Driven by the trust of over 5 million

customers, the Hero Moto Corp (previously Hero Honda) product range today

commands a market share of 48% making it a veritable giant in the industry. Add

to that technological excellence, an expansive dealer network, and reliable after

sales service, and you have one of the most customer- friendly companies.

Customer satisfaction, a high quality product, the strength of Honda technology

and the Hero group's dynamism have helped HHML scale new frontiers and

exceed limits. In the words of Mr. Brijmohan Lall Munjal, the Chairman and

Managing Director, "We will continue to make every effort required for the

development of the motorcycle industry, through new product development,

technological innovation, and investment in equipment and facilities and through

and through efficient management."


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HERO MOTO CORP (PREVIOUSLY HERO

HONDA) MISSION

Hero Moto Corp (previously Hero Honda)s mission is to strive for synergy

between technology, systems and human resources, to produce products and

services that meet the quality, performance and price aspirations of its customers.

At the same time maintain the highest standards of ethics and social

responsibilities. This mission is what drives Hero Moto Corp (previously Hero

Honda) to new heights in excellence and helps the organization forge a unique andmutually beneficial relationship with all its stakeholders.

VISION

Hero Moto Corp (previously Hero Honda) now the leader in the two wheeler

industry. Leaders are not born, they evolve over time. It all started on the

auspicious. Baisakhi Day the 13th of April 1984, when the Hero Moto Corp

(previously Hero Honda) Motor Company joined hands. On its journey to take on

the No. 1 morale, Hero Moto Corp (previously Hero Honda) created some

prominent milestones.. This leadership has been achieved only because of its

philosophy to excel in all areas. In fact, passion to excel is a credo of the entire

Hero Moto Corp (previously Hero Honda) family and is a way of life in Hero Moto

Corp (previously Hero Honda). The changing Scenario of increasing competitionand the entry of new brands has made the credo even more relevant. It serves as a

constant reminder to ensure excellence in providing service to the customer. They

are providing outstanding customer service. It is in keeping with Hero Moto Corp

(previously Hero Honda)s own passionate commitment to provide ultimate


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customer satisfaction. Today, they consistently meet and exceed all requirement on

quality, cost and delivery.

The Board of Directors of The Hero Moto Corp (previously Hero Honda)

Group Comprises of

Mr. Brijmohan Lall Munjal Chairman

Mr. Pawan Munjal Managing Director

Mr. Akio Kazausa Joint Managing Director

Mr. Kazumi Yanagida Director

Mr. Satyanand Munjal Director

Mr. Om Prakash Munjal Director

Mr. M P Wadhawan Director

Mr. S P Virmani Director

Mr. O P Gupta Director

Mr. M. Sudo Director

Mr. S Toshida Director

Mr. N N Vohara DirectorMr. Pradeep Dinodia Director

Gen. ( Retd.) V P Malik Director

OBJECTIVES

Hero Moto Corp (previously Hero Honda)s mission is to strive for synergy

between technology, systems and human resources, to produce products and

services that meet the quality, performance and price aspirations of its customers.

At the same time maintain the highest standards of ethics and social

responsibilities. This mission is what drives Hero Moto Corp (previously Hero


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Honda) to new heights in excellence and helps the organization forge a unique and

mutually beneficial relationship with all its stake holders

ACHIEVEMENTS AWARDS ANDACCOLADES

Year Awards & Recognitions 2009

ET Awards for Corporate Excellence - Hero Moto Corp (previously Hero Honda)

is the winner of the Company of the Year" award for 2008 - 09. NDTV Profit

Business Leadership Award 2008 - Hero Moto Corp (previously Hero Honda)

Wins the Coveted "NDTV Profit Business Leadership Award 2008" Top Gear

Design Awards 2008 - Hunk Bike of the Year Award NDTV Profit Car India &

Bike India Awards - NDTV Viewers Choice Award to Hunk in Bike category

India Times Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty

Awards - Customer and Brand Loyalty Award in Automobile (two-wheeler)

sector Asian Retail Congress Award for Retail Excellence (Strategies and

Solutions of business innovation and transformation) - Best Customer Loyalty

Program in Automobile category NDTV Profit Car India & Bike India Awards -

Bike Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the

year TNS Voice of the Customer Awards:

2008

No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Xtreme

2007


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The NDTV Profit Car India & Bike India Awards 2007 in the following category:

Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up

to 150 cc category) "Bike Technology of the Year" - Glamour PGM FI

"Auto Tech of the Year" - Glamour PGM FI by Overdrive Magazine. "Bike of the

Year" - CBZ X-treme by Overdrive Magazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine Most

Trusted Company , by TNS Voice of the Customer Awards 2006. CD Deluxe

rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006.

2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top IndianTwo Wheeler Company). One of the 8 Indian companies to enter the Forbes top

200 list of worlds most reputed companies. No. 1 in automobile industry by TNS

Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction

Awards 2006:

Splendor Plus (Executive) CD Deluxe (Entry) Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand

Equity Survey 2006. Adjudged 7th Top Indian Company by Wallstreet Journal

Asia (Top Indian Two Wheeler Company). Top Indian company in the Automobile

- Two Wheeler sector by Dun & Bradstreet - American Express Corporate Awards

2006. Hero Moto Corp (previously Hero Honda) Splendor rated as India's most

preferred two-wheeler brand at the Awaaz Consumer Awards 2006. Certificate of

Export Excellence for outstanding export performance during 2003-04 for two-

wheeler & three- wheelers - Complete (Non SSI) by Engineering Export


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Promotion Council.The NDTV Profit Car India & Bike India Awards 2006 in the

following category:

Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever

(up to 150 cc category) Bike of the Year - Glamour (up to 125 cc category) NDTV

Viewers' Choice Award to Glamour in the bike category

2005

Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by

CNBC in the 'Automobiles' category. Bike Maker of the Year Award by Overdrive

Magazine. ICWAI National Award for Excellence (Second) in Cost Management

2004 in the private sector category by ICWAI. 10th Motilal Oswal Wealth Creator

Award for as the most consistent wealth creator for the period 1991-2005.

2004

Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst

the top 10 Indian companies). GVC Level 1 (Highest Rating) by CRISIL for

corporate Governance. Adjudged as the Best Value Creator - Large Size

Companies 2003-04 by The Outlook Money. Corporate Excellence Award 2004 by

Indian Institute of Materials Management. Adjudged as the Organization with

Innovative HR Practices by HT Power Jobs for HR Excellence. ICSI National

Award for Excellence in Corporate Governance 2004 by The Institute of Company

Secretaries of India.

2003


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Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst

the top 10 Indian companies). Most Respected Company in Automobile Sector by

Business World. Bike Maker of the Year by Overdrive Magazine.

2002

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia

's Leading Companies Award (4th Rank amongst the top 10 Indian companies).

Company of the Year of ET Awards for Corporate Excellence. Ranked 4th in

'Overall Best Managed Company' category, ranked 3rd in 'Best Financial

Management' and 'Best Operational Efficiency' category, ranked 6th in 'OverallBest Investor Relations' category, by Asiamoney. Highest Wealth Creating

Company of the Year Award by the Money. GVC Level 1 (Highest Rating) by

CRISIL for Corporate Governance.

2001

Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia

's Leading Companies Award (9th Rank amongst the top 10 Indian Companies).

Winner of Three Leaves Award for showing Corporate Environment

Responsibility in the Automobile Sector by Centre for Science & Environment.

1999 National Productivity Award for the Best Productivity Award in the category

of Automobile & Tractor presented by Vice President of India. 1995 The Analyst

Award 1995 presented to Hero Moto Corp (previously Hero Honda) Motors Ltd.

on being ranked 9th amongst the most investor rewarding companies in India. 1995

National Award for outstanding contribution to the Development of Indian Small

Scale Industry (NSIC Award - Presented by President of India). 1991 Economic


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Times-Harvard Business School Award for Corporate Performance to Hero Moto

Corp (previously Hero Honda) Motors Ltd.

History Of Company

1984

The Company was Incorporated on 19th January, at New Delhi. The Company

Manufacture motor cycles up to 100 cc capacity. The Company was promoted by

Hero Cycles (P) Ltd. (HCPL).

The Company entered into a technical-cum-financial collaboration agreement with

Honda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML

was to furnish complete technical information and know-how and trade secrets and

other relevant data.

Hero Moto Corp (previously Hero Honda) CD-100 is the first four stroke

motorcycle to be introduced in India in 100cc range. Its most attractive features are

fuel efficiency and its light weight. CD-100 will be equipped with electronic

ignition system, illuminated speedometer, 4 speed gear box, neutral and flasher

indicators, etc. 15 No. of equity shares subscribed for by the promoters, etc. In

November, 119,99,985 No. of equity shares issued at par of which 71,99,985

shares reserved for allotment as under:

(i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., andBahadur Chand Investments (P) Ltd.

(ii) 31,20,000 shares to Honda Motor Co. Ltd., Japan and(iii) 9,59,987 shares to friends and association of promoters. Out of the

balance 48,00,000 shares, 2,40,000 shares were reserved for subscription

by the employees of the Company and 96,000 shares by business

associates. The remaining 44,64,000 shares were offered at par for public


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subscription during November.

1985

The Company embarked on its 2nd phase of expansion of increasing its installed

capacity from 1,20,000 to 1,50,000 vehicles per annum by the addition of several

critical aliminium and steel components.

1986

36,00,000 rights equity shares issued at par in prop. 3:10.

1987The Company offered 6,00,000 - 15% secured redeemable non-convertible

debentures of Rs 100 each for cash at par on rights basis in the proportion 1

debenture: 18 equity shares. Another 3,00,000 - 15% debentures were allotted to

retain oversubscription. Thedebentures were to be redeemed at a premium of Rs 5

per debenture on the expiry of the 7th year from the date of allotment of the

debentures

3,75,000 rights equity shares issued at par in prop.3:10

1989.

The Company introduced a new model "Sleek" during July.850 No. of equity

shares forfeited.

1990

The Company was planning to launch a new model motor cycle-CD 100 SSsutiable to semi-rural conditions. In the domestic market the Company was

reported to have a market share of 46%.- 850 forfeited shares reissued.

1994

The Company proposed to expand the capacity of existing plant at Dharuhera to


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2,40,000 nos. per annum. Another plant with an installed capacity of 1,50,000 nos.

per annum at Gurgaon Industrial Estate was being set up.

The Company issued 39,79,500 bonus shares to the existing shareholders in the

ratio of 1:4. The Company also issued 28,557 number of fractional coupons

representing 14,250 shares against which shares shall be allotted to presenting the

same for consolidation and allotment. The Company's production and turnover

increased to 1,83,490 motorcycles and Rs.483.85 crores respectively due to growth

in demand for two wheelers and declining inflation.

1995

14,420 bonus shares issued by way of consolidation of fractional coupons. - A new

Technical Collaboration Agreement has been signed with Honda Motor Co. Ltd.,

Japan for the period up to the year 2004 which includes technology related to

models of higher Engine displacement. The Company allotted 39,79,500 No. of

Equity Shares of Rs. 10/- each as Bonus shares on 7th February, by way of

capitalization of General Reserves.

The Company had issued 28557 No. of Fractional Coupons representing 14.250

shares against which the Shares shall be alloted on presenting the same for

consolidation and allotment.

1997

Hero Moto Corp (previously Hero Honda) Motors has launched its newest

motorcycle, the Street, a 100 cc bike designed for use in congested urban traffic

conditions. Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML) has set

up a new motorcycle plant in Gurgaon, near Delhi for the manufacture of the

Honda Super Cub 100 cc step thro bike. Hero Moto Corp (previously Hero Honda)

has set up a new state-of-the-art plant, heralding a new phase of development of

motorcycle industry in India, to provide the most modern and technologically


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advanced production facilities.

Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has

set up a plant in Brazil for manufacturing hero winner scooters.

A new step thru model `Street-100' with unique feature was launched on 24th

January.

1998

The company proposes to increase the share capital to 5 crore equity shares of Rs.

10 each, 4 lakh cumulative redeemable preference shares of Rs. 100 each and 4

lakh cumulative convertible preference shares of Rs. 100 each with power to

increase or reduce it from time to time. The company further proposes to capitalise

Rs. 19,96,87,500 from general reserve to share capital through issue and allotment

of bonus shares. Altogether, 1,99,68,750 fully paid bonus shares will be allotted

and distributed to members of the company holding equity shares of the company

in the proportion of one bonus share for every fully paid equity shares of Rs.10

each. Motorcycles major Hero Moto Corp (previously Hero Honda) is considering

entry into scooters in collaboration with partners, Honda Motors, after the Japanese

company decided to walk out of Kinetic Honda, their scooter venture with the

Firodias of Pune. Honda Motors recently pulled out of its joint venture with the

Firodias in which it held a 51 per cent equity stake.

Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd

(KHML) have signed a five-year licence and technical assistance agreement under

which KHML will continue to receive the technical knowhow, critical vehicle

parts and access to Honda's markets even after the sale of Honda stake in KHML to

Kinetic Engineering Ltd (KEL).

- The Company changed the paradigm in two-wheelers by launching the most

powerful


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and fast bike- CBZ with a unique feature of Transient Power Fuel Control

(TPEC) system.

23,962,500 bonus shares issued in prop. 1:1.

1999

Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML) and 20th Century

Finance Corporation Ltd have signed a Memorandum of Understanding (MoU) for

financing of Hero Moto Corp (previously Hero Honda) motorcycles.

The company, a joint venture between Honda Motor Company of Japan and Hero

group of India to produce four-stroke motorcycles, also aims to increase its share

by 1 per cent to 38.6 per cent during the current fiscal. Leading two-wheelers

manufacturer Hero Motors has formed a joint venture with Briggs Stratton of US

to develop and manufacture four-stroke engines for mopeds and scooters in India, a

top company. Honda Motor Company of Japan has decided to re-enter the scooter

market in India as also foray into three-wheelers in a joint initiative with its

existing joint venture company Hero Moto Corp (previously Hero Honda) Motors

Ltd.

2000

Hero Moto Corp (previously Hero Honda) Motors Ltd. and Tata Finance Ltd. have

signed a national tie-up agreement. The Company is the largest manufacturer of

motorcycles in the country. The Company will relaunch its stepthru Stree Smart on

Baisakhi 13th April. Hero Moto Corp (previously Hero Honda) Motors Ltd

(HHML), has launched an upgraded version of the existing step-through

motorcycle - the Hero Moto Corp (previously Hero Honda) Street. The Company

was ranked as the 9th Highest Value Creator among 12 industry groups within the

Bombay Stock Exchange top 100 companies over a five year period (1994-99).

2001


23/99

Hero Moto Corp (previously Hero Honda) Motors Ltd. has launched a new 100cc

motorcycle named `Passion'. The Company has secured shareholders' approval for

splitting one equity share of Rs 10 each into five equity shares of Rs 2 each in the

ratio of 1:5.

Hero Moto Corp (previously Hero Honda) Motors Ltd. has become the largest

seller of motorcycles amongst all Honda companies and ventures in the world by

selling one million motorcycles during the current financial year. Credit rating

Agency Crisil has reaffirmed outstanding `AAA' rating assigned to the proposed

Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paper

programme and fixed deposit programme of Hero Moto Corp (previously Hero

Honda) Motors.

Promoter-Chairman of the country's largest motorcycle manufacturing company,

Hero Moto Corp (previously Hero Honda) Ltd, Brijmohan Lall Munjal has bagged

the prestigious Ernst & Young Entrepreneur of the Year (EOY) award here on

September 27.

PRODUCTS PROFILENew Launches:

Glamour Just4her Glamour PGMFI
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CD Deluxe CBZ X-Treme Achiever

Next Generation

of Motorcycling

Pleasure Splendar NXG

Hunk Karizama

Campaigns:

We got a Good thing Going!

A Lot less Stops One Litre Road It's the Honda

Stretch That Litre. Save Petrol
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Chartered Accountant Over-Time Best Seller

Economical Honours

Others:

World's No.1! Friends For Life Nawab of

Najafgarh

Designed to Excel Awaaz Consumer Awards '06
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HEROHONDA BIKE MODELS

Model: Achiver ES Model: Achiver Kick

Start

Model: CBZ Xtreme

ES

Model: CBZ Xtreme

Kick Start

Model: CD Dawn Model: CD Deluxe

Model: Glamour

Electric Start

Model: Glamour FI ES Model: Glamour FI

Kick Start

Model: Glamour Kick

Start

Model: Hunk ES Model: Hunk Kick

Start

Model: New Karizma Model: Passion Plus Model: Pleasure

Model: Splendor NXG

(Alloy)

Model: Splendor NXG

(Spoke)

Model: Splendor Plus

Model: Super

Splendor

Model: Ambition Model: CBZ

Model: CBZ* Kick

Start

Model: CBZ* Electric

Start

Model: CD 100 SS

Model: Dawn Model: Karizma Model: Passion

Model: Splendor Model: Street Dlx Model: Super

Splendor KS


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Training is a process of learning a sequence of programmed behavior. It is

application of knowledge & gives people an awareness of the rules and procedures

to guide their behavior. It attempts to prepare them for an intended job.

Development is a related process. It covers not only those activities, which

improve job performance, but also those, which bring about growth of the

personality; help individuals in the progress towards maturity & actualization of

their potential capacities so that they become not only good employees but also

better men & women. In organizational terms, it is intended to equip persons to

earn promotion and hold greater responsibility. Training a for a bigger and higher

job is development. In addition, this may well include not only imparting specific

skills and knowledge but also inculcating certain personality and mental attitudes.

Training is a short-term process utilizing a systematic & organized procedure bywhich non-managerial personnel learn technical knowledge & skills for a definite

purpose. Development is a long-term process educational process utilizing a

systematic and organized procedure by which managerial personnel learn

conceptual and theoretical knowledge for general purpose.

Training refers to instruction in technical and mechanical operations, while

development refers to philosophical & theoretical educational concepts. Training isdesigned for non-managers, while development involves managerial personnel.

Training & Development differ in four ways:

"What" is learned?


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"Who" is learning? "Why" such learning takes place & "When" learning occursThe difference may be stated thus:

Learning dimensions Training Development

Who? Non-managerial

personnel

Managerial personnel

What? Technical & mechanical

operations

Theoretical, conceptual

ideas

Why? Specific job-related

purpose

General knowledge

When? Short term Long-term

NEED FOR BASIC PURPOSES OF TRAINING

1. To increase productivity-Instruction can help employees increase their levelof performance on their present assignment. Increased performance often

directly leads to increased operational productivity and increased company

profit.


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2. To improve quality- Quality increases may be in relationship to a companyproduct or service, or in reference to the intangible organizational

employment atmosphere.

3. To help a company fulfill its future personnel needs- when the need arises,organizational vacancies can more easily be staffed from internal sources if a

company initiates and maintains an adequate instructional program for both its

non-supervisory & managerial employees.

4. To improve organizational climate- Increased morale may be due to manyfactors, but one of the most important of the most important of these is the

current state of an organization's educational endeavor.

5. To improve health & safety- Proper training can help prevent industrialaccidents. A safer work environment leads to more stable mental attitudes on

the part of employees.

6. Obsolescence prevention- Training & Development programs foster theinitiative & creativity of employees & help to prevent manpower

obsolescence, which may be due to age, temperament or motivation, or the

inability of a person to adapt him to technological changes.

7. Personal growth- An increased use of technology in production. Labor turnover. Employment of inexperienced labors. Old employees need refresher training to enable them to keep abreast of

changing methods.

Enabling employees to do the work in a more effective way. Reducing grievances and minimizing accident rates.


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Maintaining the validity of the organization & raising the morale of theemployees.

Importance of training

Training is the corner stone of sound management, for it makes employees more

effective & productive. It is actively and intimately connected with all the

personnel or managerial activities. It is an integral part of the whole management

program, with all its many activities functionally inter-related.

There is an ever present need for training men so that new and changed techniques

may be taken advantage of and improvements affected in the old methods, which

are woefully inefficient. Training is a practical and vital necessity because it

enables employees to develop & rise within the organization, and increase their

"market value", earning power and job security. It moulds the employees ' attitudes

and helps them to achieve a better co-operation with the company and a greaterloyalty to it. Training, moreover, heightens the morale of the employees, for it

helps in reducing dissatisfaction, complaints, grievances & absenteeism reduces

the rate of turnover. Training is a widely accepted problem-solving device.


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Steps in training programs

Getting ready for the job

Preparation of the learner

(create, desire & prepare accordingly)

Presentation of operations & knowledge

(Application of training techniques)

Performance try-out

Follow-up

(rewards and feedback)

Discovering or identifying training needs

( through organizational operations manpoweranalysis)


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33

Objectives of employee training

The overall objective of training program is to fill in the gap between the

existing and the desired level of knowledge, skills and aptitudes.

Objectives of training express the gap between the present and the

desired performance levels. A well designed training program

improves the personnel qualitatively. The main objectives of training

may be defined as follows-

1. To impart basic knowledge- To impart the entrants the basic knowledgeand skills required for efficient performance of definite tasks. It increases

the skill, knowledge and operative competence of the employee, which

help to increase the level of performance.

2. To function more effectively in their present position- It assists theemployees to function more effectively in their present positions by

exposing them to the latest concepts, information and techniques and

developing the skills required performing their job in a better way.

3. To build up second line of competent officers- Whenever there is achange in a job position, the new incumbent from within can occupy the

position more confidently.

4. To broaden the minds of senior managers- It corrects the narrowoutlook caused by the over specialization.

5. To reduce supervision- It reduces the degree of supervision and makesthe workers more independent & more responsible. It reduces cost of

production and cost of supervision.

6. To improve the organizational environment- The purpose of training isto generate an improved organizational environment. Proper training


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34

reduces industrial accidents. Proper & safer living and working

environment leads to more stable mental attitude on the part of the

employees. It reduces the rate of absenteeism and labor turnover.

Principles of training

A sound training program must possess the following characteristics:

1. The training program should be designed so as to achieve pre-determinedobjectives and needs of the organization.

2. Training program should be less expensive.3. Training program should be developed for all in the organization and not

for a particular group.

4. Training program should be pre-planned and well organized, taking inview the objectives of training program.

5. Training program should be designed according to size, nature andfinancial position of the concern.

6. the program should be conducted by a senior and experienced supervisoror executive of the concern or by training director who is in charge of the

training section under personnel department.

7. Theoretical and practical aspects of training should be givenconsideration while preparing a training program.

8. Training program should be designed taking in view the interests of bothemployer and employees.

9. The purpose of training is to develop the men and therefore more thanone method may be followed for different groups.

10. The program should be flexible enough so that it may be adjustable to

the changing circumstances.


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35

11. Training should be followed by a reward, so that employees may be

motivated.

12. Sufficient time should be provided to practice what the employees have

learned.

13.The trainee should be provided with 'feedback' on the progress he is

making in utilizing the training he has received.

Evaluation of effectiveness of training and management development

programs

Evaluation is an essential feature of all programs for the training of

employees. The concept of evaluation is most commonly interpreted in

determining the effectiveness of program in relation to its objectives.

Management invests in training programs of the employees only with the

expectation to see some tangible benefits derived there from. Evaluation canbe done from various purposes. Objectives of training evaluation is to

determine the ability of the participant in the training program to perform

jobs for which they were trained, the specific nature of the training

deficiencies, whether the trainees required any additional on the job training,

and extent of training not needed for the participants to meet the job

requirements. Evaluation of the training program may be done as follows:

1. To increase the effectiveness of the training programs while it is goingon.

2. To increase the effectiveness of the programs to be held next time.3. To find out to what extent the training objectives are achieved.4. To help participants to get feedback for their improvement and

efficiency.


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36

Evaluation of the training must be based on the following

principles:

Evaluation specialist must be clear about goals and purposes ofevaluation.

Evaluation must be continuous. Evaluation must be specific. Evaluation must provide the means and focus for trainers to be able to

appraise themselves, their practices, and their products.

Evaluation must be based on objective methods and standards.Realistic target dates must be set for each phase of the evaluation process. A

sense of urgency must be developed, but deadlines that are unreasonably high

will result in poor evaluation.

There are various approaches to training evaluation. To get a valid measure of

training effectiveness, the personnel manager should accurately assess trainee's

job performance two to four months after completion of training. The four basic

categories of outcomes can be measured -

Reaction: Evaluate trainee's reaction to the program.

Learning: Did the trainee learn the principles, skills and fact that the

supervisor or trainer wanted him to learn?

Behavior: Whether the trainee's behavior on the job changed because of

the training program?

Results: What final results have been achieved?

TRAINING COURSE


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37

Training may range from highly specified instruction in the procedures to be

adopted while performing a particular job to every general instruction

concerning the economy and society. Training courses in general areas usually

aim at making an employee a rounded individual, a happier worker and a good

citizen, and at training him for "larger responsibilities" and future advancement.

Such training exerts a remarkable influence on production and labor. From the

employees point of view, output would increase with decrease in cost of

production. From the point of view of labor, the employees' morale would

improve; so would the rate of turnover, excessive absenteeism and accidents

reduce. Training programs are no doubt expensive; but their worth to a growing

concern cannot be over-emphasized.

Training in general areas is given in such subjects as general and home

economics, basic English, instruction in better writing and report drafting,

reading using gauges, the operation of machines, public speaking and public

relations, selling and communication with people.

SUPPORT MATERIAL FOR TRAINING

A variety of equipments are utilized to impart effective training. These are:

1. Lectures, conferences, seminars and staff-meetings, demonstrations, andshort courses, through coaching.

2. Role-playing and job rotation.3. Case or project studies and problem-solving sessions.4. Use of pamphlets, charts, brochures. booklets, handbooks, manuals etc.5. graphs, pictures, books, slides, movies, projectors, film strips, tape

recorders.

6. Posters, displays, notice and bulletin boards.


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38

7. Reading rooms and libraries where specified books and journals aremaintained for reference and use.

8. Under-study and visits to plants.9. Correspondence courses under which knowledge about business law,

statistics, industrial management, marketing, offices procedures, retailing

and many other similar subjects may be imparted.

10.Teaching machines.

11.Membership of professional or trade associations, which offers new

techniques and ideas to their members.

TRAINING PERIOD

The duration of training varies with the skill to be acquired, the complexity

of the subject, a trainee's aptitude and ability to understand, and the training

media used. Generally a training period should not be unduly long; if it is,

trainees may feel bored, uninterested. The ideal session should not go

beyond 2 to 3 hours at a stretch, with a break in between two sessions. If

convenient, employees may be trained for a week or a fortnight for an hour

or two, every day after work hours.

The training period may extend from 3 weeks to 6 months or even more,

depending upon the job requirements. The physical location of the program

should be in pleasant surroundings away from the noise and tension of the work

place.

TRAINING FOR DIFFERENT EMPLOYEES

Employees at different levels require training. Unskilled workers require

training in improved methods of handling machines and materials to reduce the

cost production and waste and to do the job in the most economical way. Such


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39

employees are given training on the job itself; and the training is imparted by

their immediate superior officers.

Semi-skilled workers require training to cope with the requirements of an

industry arising out of the adoption of mechanization, rationalization and

technical processes. These employees are giving training either in their own

sections or departments, or in segregated training shops where machines and

other facilities are usually available. Training is usually imparted by more

proficient workers, bosses or inspectors, Training methods include instruction in

several semi-skilled operations because training in one operation only creates

difficulties in adjustments to new conditions, lend the color of specialization to

a job and makes work somewhat monotonous for an individual.

Skilled workers are given training through the system of apprenticeship, which

varies in duration from a year to three or five years. Such training is also known

as tradesman or craftsmen training, and is particularly useful for such trades inindustry which require highly sophisticated skills- as in carpentry, drilling,

boring, planning etc. Such programs are usually conducted in training centers

and industry itself.

Supervisory staff needs training most, for they form a very important link in the

chain of administration. The training programs for supervisors must be tailor-

made to fit the needs of an undertaking. Their training enables supervisors to

cope with the increasing demands of the enterprise in which they are employed

and to develop team spirit. Supervisors' training may include the supply of

necessary reading material, job rotation to give them a wide- in plant

experience, holding of staff meetings, visits to other industrial units,

participation in the work of other departments, lectures and teaching, role-

playing, case studies and conferences


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40

METHODS/ TECHNIQUES

ON THE JOB DEMONSTRATION APPRENTICESHIP

OTHER TRAINING

AND EXAMPLES

METHODS

VESTIBULE SIMULATION CLASSROOM

METHODS

ASSOCIATIONS

AUDIO-VISUAL

AIDS

LECTURES CONFERENCES

CASE STUDY

ROLE-PLAYING

PROGRAMMED

INSTRUCTION

Classification of training


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41

ON-THE-JOB- TRAINING

It is the most common, the most widely used and accepted, and the most

necessary method of training employees in the skills essential for acceptable for

job performance. An employee is placed in a new job and is told how it may be

performed. It is primarily concerned with developing in an employee a

repertoire of skills and habits consistent with the existing practices of an

organization, and with orienting him to his immediate problems. Employees are

coached an instructed by skilled co-workers, by supervisors, by the special

training instructors. They learn the job by personal observation and occasionally

handling it. There are variety of OJT methods, such as coaching' or

understudy; job rotation; and special assignments.

Job instruction training(JIT)

This method requires skilled trainers, extensive job analysis, training schedules,

and prior assessment of the trainees job knowledge. This method is also known

as training through step-by-step learning. It involves listing all necessary

steps in the job, each in proper sequence. The actual training follows a four step

process :

The preparation of the trainee for instruction. Presentation of the instructions, giving essential information in a clear

manner.

Having the trainee try out the job to show him each step of the job. Encouraging questions and allowing the trainee to work along and the

trainer follows up regularly.

The JIT method provides immediate feedback on results, quick correctionof error, and provisions of extra practice when required.


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42

Vestibule training (training-center training)

It is a classroom training, which is often imparted with the help of theequipment, and machines, which are identical with those in use in the place of

work. This technique enables the trainee to concentrate on learning the new

skills rather than on performing an actual job. Theoretical training is given in

classroom, while the practical work is conducted on the production line. It is a

very efficient method of training semi-skilled personnel, particularly when

many employees have to be trained for the same kind of work at the same time.

Training is generally given in the form of lectures, conferences, case studies,

role-playing and discussion.

Demonstration and examples(learning by seeing)

The trainer describes and displays something, as when he teaches an employee

how to do something by actually performing the activity himself.

Demonstrations are very effective In teaching because it is much easier to show

a person how to do a job than to tell him or ask him to gather instruction from

the reading material. Demonstration are used in combination with lectures,

pictures, text materials, discussions etc. Demonstration are particularly effective

in the training for the acquisition of skills; but their usefulness is limited when it

is a question of training management personnel.

Simulation

Simulation is a technique, which duplicates, as nearly as possible, the actual

conditions encountered on a job. Trainee interest and employee motivation are

both high in simulation exercise because the actions of a trainee closely

duplicate real job conditions. This training is essential in cases in which actual

on-the-job practice might result in a serious inquiry, a costly error, or the

destruction of valuable materials or resources.


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43

Apprenticeship

For training in crafts, trades and in technical areas , apprenticeship training is

the oldest and most commonly used method. A major part of training time is

spent on-the-job productive work. Each apprentice is given a program of

assignments according to a pre-determined schedule, which provides for

efficient training in trade skills.

Classroom or off-the-job methods

It means training is not the part of everyday job activity. The actual location may be company

classrooms or in places which are owned by the company. These methods

consists of:

Lectures Conferences Group discussions Case studies Role-playing Programmed instructions Laboratory training


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TRAINING MODEL

Implementation of training

Once the training program has been designed, it needs to be implemented.

Implementation is best with certain problems. Firstly, most managers are action-

oriented and frequently say no to training efforts. Secondly, there is problem of

locating suitable trainers within an organization. Any training program

implementation involves action on the following lines:

Deciding the location and organizing training and other facilities. Scheduling the training program Conducting the program Monitoring the progress of trainees


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Why training fails?

The following factors have been regarded as the main reasons for failure oftraining programs:

The benefits of training are not clear to the top management. The top management hardly rewards supervisors for carrying out

effective training.

The top management rarely plans and budgets systematically fortraining.

The middle management, without proper incentives from topmanagement, does not account for training in production in production

scheduling.

Without proper scheduling, first line supervisors have difficulty inproduction norms if employees are attending training programs.

Behavioral objectives are often imprecise. Training external to the employing unit sometimes teaches techniques

on methods contrary to the practices of the participants' organization.

Timely information about external programs may be difficult toobtain.

Trainers provide limited counseling and consulting services to the restof the organization


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Improving effectiveness of training

The training program can be mad more effective and successful if the followinghints are considered:

Specific training objectives should be outlined on the basis of thetype of performance required to achieve organizational goals and

objectives.

Attempt should be made to determine if the trainee has theintelligence, maturity, and motivation to successfully complete the

training programs.

The trainee should be helped to see the need for training by makinghim aware of the personal benefits he can achieve through better

performance.

The training program should be planned so that it is related to thetrainee's previous experiences and background.

Attempts should be made to create organizational conditions thatare conducive to a good learning environment.

If necessary, a combination of training methods should be selectedso that variety is permitted and as many of the senses as possible

are utilized.

It should be recognized that all the trainees do not progress at thesame rate.

If possible, the personal involvement or active participation of thetrainee should be got in the training program.

As the trainee acquires new knowledge, skills or attitudes andapplies them in job situations, he should be significantly rewarded

for his efforts.


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The trainee should be provided with regular, constructive feedbackconcerning his progress in training and implementation of the

newly acquired abilities.

The trainee should be provided with personal assistance when heencounters learning obstacles.


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Purpose and objective of management development

Executive development is an attempt at improving an individual's managerial

effectiveness through a planned and deliberate process of learning. For an

individual this means a change through a process of planned learning. This

should be the common and significant aim of development attempts from the

point of view of the trainer and the trainee in an organizational setting.

"All the development is self development. It must be generated within the man

himself. Development is highly individual. The development of an individual is

due to his day-to-day experience on a job. Any activity to designed to improve

the performance of existing managers and to provide for a planned growth ofmanagers to meet future organizational needs is management development.

The change in the individual must take place in those crucial areas, which can

be considered as output variables:

Knowledge change Attitude change Behavior change Performance change End-operational results

The organizational aims of management development are to secure the

following valuable end-results:


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Improvement in technical performance. Improvement in supervision Improvement in inter-departmental co-operation Highlighting an individual's weakness Attracting good men Facilitating sound "promotion-from-within" policies and

practices.

Ensuring that the qualifications of key personnel become betterknown

Creating reserves in management ranks Marking an organization more flexible by an increased

versatility of its members

Improving organizational structure Stimulating junior executives to do better work Keeping the company abreast of technical and economic

conditions

'Broadening' key men in the middle cadreObjectives of management development

To develop managers to perform better on their presentassignments

To prepare them for higher assignments To provide a steady source of competent persons at all levels

to meet future organizational needs

To help them grow fast To prevent obsolescence of managers


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To replace elderly executives, who have risen from theranks, by highly competent and academically qualified

professionals

To create conditions and a climate which contribute to thegrowth process

To create an understanding of the methods and problems ofmanagement

To enable candidates to understand the problems of abusiness organization

To indicate how to apply to practical problems theknowledge of the physical and social aspects of business

problems and management.

Causes or factors of management development

The rapid rate of technological and social change in society hasnecessitated the training of managers so that they may cope

with these development

The introduction of automation, intense market competitionfrom foreign countries, the growth of new markets in the under

developed countries.

Increased recognition by business and industrial leaders of thesocial and public responsibilities of management has

necessitated the development of managerial personnel

The increased size and complexity of most organizations-governmental, industrial, commercial, on-profit public services-

require trained managers

The frequent labor-management strife have necessitated theservices of trained personnel


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The changes in socio-economic forces, including changes inpublic policy and the concepts of social justice, industrial

democracy.

Need for executive development in Indian context

Personnel in sectors as engineering and steel, coal, fertilizer, oiland cement industries need training not only in the functional

areas of management but also need to acquire a thorough

knowledge of the sector.

Management resource mobilization towards professionalizingsuch public utilities as water supply, power distribution,

transport and communications. for agriculture and industry are

dependent on the efficient functioning of these utilities.

Government and civic offices organized to render publicservices have been untouched by the management movement

Management principles and techniques need to be introduced inother areas of national economy.

Public administration is a vast sector, which needs managementattention.

Management development programs for all those who areengaged in positions above the supervisory level of operations.

Importance of management development

The development of the full potential of all those who are under theircommand as a prime responsibility


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Providing for the present an future needs of the firm of managerial talentby establishing, operating and improving management training and

development scheme.

Taking account by regular appraisal of how successful managers aredeveloping their own subsidiaries

Providing opportunities for every manager to take an active part in hisown development

Developing all parts of the scheme together as a consistent an orderlywhole, in line with the company's objectives.

Management development concepts

Some of these important concepts are:

1. There is no time limit for learning. Management training is not a "oneshot" affair but continues throughout an executive's whole

professional career.

2. There always exists some gap between actual performance andcapacity, which provides considerable opportunity for improvement.

A large number of employees do operate below a pre-determined

standard, which their training aptitude desires of them. If they get

further training and acquire additional technical knowledge in

management, in communication and in organizational affairs, they arebound to work faster and more efficiently, actively, and productively.

3. There are certain forces, which may retard further growth, but thesemay be offset or the direction of their movement changed.

4. Increased understanding of others, their behavioral attitude and ofoneself definitely aid in managing and contributing to personal

development, which is needed to increase and expand managerialeffectiveness.


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5. Development seldom takes place in a completely peaceful and relaxedatmosphere. Growth involves stresses and strains. "Adversity is the

mother of invention." It is because of errors and some failures that one

is impelled to try and succeed in one's mission.

6. Development requires a clear-cut setting of the objectives and goalswhich are to be achieved or attained, and the ways and methods of

achieving these.

7. Participation is essential for growth. Active learning and effort areneeded.

8. Feedback from a superior to a subordinate, and from a group to anindividual is necessary for the recognition of shortcomings and for

keeping oneself in touch with the progress that ahs been achieved.

9. An important responsibility in the management of personnel is that ofdevelopment.

Executive development process

The object of management development is to influence and modify the behavior

of the managers in operation, it is necessary that in framing a management

development program for specified managerial group, the following things are

involved:

1.

Identify the pattern of behavior at which the program is aimed atwhich it seeks to influence and modify.

2. Identify the causes the impulses, horizontally up and down theenterprise, which blend to give rise to the pattern of behavior.

3. Identify the nature of the exposure- the impulses that must beintroduced into the system-through the development program

4. The program must take care to throw impulses into the system in amanner that generates the urge to behavior changes from within the


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trainee manager by the process of evolving rather than an

imposition from outside.

FACTORS INHIBITING MANAGEMENT DEVELOPMENT

Some of the factors, which hamper a management development program,

are:

Job security of the employees, its stability, and pension; these slow downthe mobility of employees and check the recruitment of younger people.

Supervisors at different levels, especially in the middle management,often feel trapped.

Home ownership, home-sickness, close ties with one's family, communityand social activities inhibit development to a large extent; and when these

are accompanied by the absence of job security and chances of

promotion, the employees tend to stress the non-job aspects of their lives.

Relations between superiors and subordinate are often not conducive tomanagement development.

Basic requisites for the success of management development

programs

1. The top management should accept responsibility for getting thepolicy of development executed.

2. Management development is essentially a "line job", it takes placeon the job and involves both the man and his boss.

3. Every manager must accept direct responsibility for developingmanagers under his control on the job, and a high priority should

be given to his task.

4. Management development must be geared to the needs of thecompany and the individual.


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5. A policy of promotion from within is a necessary incentive formanagers to develop in an organization

6. Management development starts with the selection of the rightmaterials for managerial ranks. It is essential to ensure that really

good material is fed into the program at the entry levels.

7. There should be a realistic timetable in accordance with the needsfor managerial personnel over a sufficiently long period and the

resources which are available and which will be required.

Administering a management development program

While administering the program, due consideration should be given to the

following points:

1. It should support a systematic career planning for managerial personnel,otherwise the frustrated trainees might seek opportunities elsewhere and

the whole investment made in training programs would go waste.

2. Management development does not comprise involvement in a series ofstructured courses, but there should also be an active interaction between

the trainee and the management.

3. Training program should cover, as far as possible, every manager,capable of showing potential for growth.

4. The entire program should be properly planned. The trainees should takepart in it. The company should not normally allow any manager to opt out

of a training program.


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TECHNIQUES OF MANAGEMENT DEVELOPMENT

1. On-the-job techniques

This method of training & development has its own value. It is inexpensive and

saves productive hours. Most popular techniques under this type are:

The coaching or guided method Job rotation method Participation in deliberations of the Boards and committees

The coaching method

Coaching is a method, which is used in developing managerial thinking

processes as well as operative skills. In coaching, the superior plays the role of

the guide and the instructor. The coach sets some mutually agreed upon goals

and tell the trainee what he wants to be done, follows up suggestions, and

corrects errors. It has certain advantages:

It requires the least centralized staff co-ordination, for every executivecan coach, his men even if no management development program exists.

Periodic feedback and evaluation are also a part of coaching, which yieldimmediate benefits to an organization, to the coach and to the

subordinate.

Coaching will work well if the coach provides a good model with whom the

trainee can identify; if both can be open with each other; if the coach accepts his

responsibility fully; if he provides the trainee with recognition of his

improvement and suitable rewards.


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Job rotation or channel method of development

It represents an excellent method of broadening the manager or potential

manager, for turning specialists into generalists. It is designed for beginning

level managers while planned progression is more likely to occur at higher

managerial levels. The emphasis is on diversified instead of specialized skills

and knowledge. Its advantages are:

It breaks down departmental provincialism for everyone is movedfrom one to another. It rather develops inter-departmental co-

operation.

It injects new ideas into the older departmental personnel who mayotherwise fall in a rut. New concepts are infused into them and they

are diffused throughout an enterprise.

It ensures the avoidance of the problem, which arises when a newlypromoted manager is required to supervise his former peers.

It makes possible for managers to compare one man with another, andgives everyone an equal chance for advancement.

Each managers abilities and talents are best tested in a variety of jobs,so the enterprise can secure his best utilization in the ultimate

assignment.

Understudy assignment or attachment method

An understudy is a person who is under training to assume, at a future time,

the full duties and responsibilities of the position currently held by his superior.

A manager from amongst a large number of subordinates, or several

individuals may pick up an understudy. Such an understudy learns the


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complexities of the problems and how to solve them, learns also the process of

decision making and investigation and making written recommendations to his

superior. The advantages of this method are:

It is practical and quick in training persons for greater responsibilityfor it lays emphasis on learning by doing.

The learners interest and motivation are high and the superior isrelieved of his heavy workload.

It ensures continuity of management facilities even when the superiorleaves his position.

Participation in deliberations of the junior board and committees or the

multiple-management technique

It is a technique whereby juniors are assigned to board or committees, by the

chief executive. The juniors get an opportunity to share in a managerial

decision-making, to learn by watching others and to delve into specific

organizational problems. It has several advantages:

It gives Board members an opportunity to gain knowledge on variousissues.

It helps identify those who have executive talent. Multiple judgmentsare obtained on each individual through the Board rating system.

It is relatively inexpensive method of development. It permits a considerable number of managers to participate in

certain activities within a reasonable period of time.

2. Off-the-job techniques

A number of on-the-job management development programs are in vogue, they

are considered inadequate for a number of reasons. Hence, off-the-job


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techniques are needed. There is wealth of executive development techniques

that managers can partake in off the job. Of t

Trainingand Development in Hero Moto Corp

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