CHAPTER-1

INTRODUCTION
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

Every study has certain objective. There is no study without objective because objectives
are the purpose of study. There are two types of objectives:
Primary Objectives

To understand the prevailing trends of training and development at ESCORTS LTD.

Secondary Objectives

To study the effectiveness of training and development performance of the employees.

To suggest ways to improve training and development methods bring out a positive
attitude.

To get more knowledge about the company.

To study the global training standards.

To study the training need analysis used in different employment context.

SCOPE OF THE STUDY

The training is an organized activity for increasing the technical knowledge and learns new
skills to do specific jobs efficiently. Training is equally important for the existing as well as
new employees. It enables the new employee to get acquainted with their jobs and also
increase the job-related knowledge and skills. The study will help increase the performance
levels of employee in the organization. It will help to know about the quality of the
products so that the image can be increased. Training & development measure the level of
satisfaction of employees with respect to the company.

RESEARCH METHODOLOGY
Meaning
Research is a systematized effort to gain new knowledge. It is a systematic
study consisting of a problem formulating a hypothesis collecting the facts and data,
analyzing the facts and reaching for certain conclusions, which can be in the form of either
solution towards a problem.

Research design
A research design is the arrangement of conditions for collection and analysis
of data in a manner that aims to combine relevance to the research purpose with economy
in procedure. The research design used in my study is basically descriptive in nature.
Types of research

Exploratory research

Descriptive research

Causal research

Applied research

Basic research

Exploratory research
Exploratory studies are conducted to clarify the ambiguous problems. Ambiguity means

that the nature of problem to be solved is unclear.

Descriptive research
The research design in my study is descriptive. Its studies are concern with

describing the characteristics of a particular group or individual. Studies concerned with

specific prediction with narration of facts and characteristics concerning individual, group
or situations are examples of descriptive research .it is also known as social research.

Causal research

The mean purpose of causal research is to identify the cause and effect
relationship between variables.

Applied research
Applied research is conducted when a decision is to be made about a

specific real-like problem.

Basic research
Basic or pure research (fundamental research) attempts to expand the limits of

knowledge.
Sample Design
A sample design is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researcher would adopt in
selecting items for the sample i.e. the size of the sample. Stratified sample method is
adopted to select the sample.
Sample Size
It includes the number of sampling unit selected from the population for
investigation. The sample size must be optimum or adequate. If the sample size is small it
may not appropriately represent the population.
Too large sample would be costly in terms of money &time. The optimum sampling size
would fulfill the requirements of efficiency, representativeness, reliability, and flexibility.
The sample size is taken of 100 employees. It is because of the shortage of time & their
busy schedule.

METHODS OF DATA COLLECTION

Data collection is an art. Sometime it is very time consuming affair. The source
information falls under two categories:
Primary Data
Secondary Data
Primary data
Primary data is collected through various methods:

Observation method

Interview method

Schedules & Questionnaire method

Internet

Advantages

Simplicity

Direct and realistic study

Useful for formulating

Greater accuracy

Results are more dependable

Disadvantages

Not possible to remain present

Not possible because a schedule events may not take place

Not possible on account of the long duration

I have used face to face interview method to collect primary data.

Secondary Data
The secondary data means data that are already available in various reports,
diaries, letters, books, etc.

Life history, diaries, autobiographies, letters and testaments.

Reports published by various Research Organizations.

Advantages

More flexible

It is perfect sample of the general population

Controlled which person will answer the question

Disadvantages

Uneconomical

Emotionalism

Personal bias

LIMITATIONS OF THE STUDY

With the proper due cares this study has been conducted but it consists of some of its
limitations also which are as follows:

Sample size was small i.e. 100

The time limit is also one of the major constraints in conducting study.

Biases may creep in the information given by the respondents.

Main root of this research study was questionnaire & interview, which has its own
limitations, for example we cant measure the reliability, enthusiasm dissonance etc.

A budget constraint is an accounting identity that describe describes the consumption

option available agent with a limited income (or wealth) to allocate among various goods.

CHAPTER-2
REVIEW OF LITERATURE

Definition of training
According to Michael J. Jucius, defines, The term training is used here to
indicate only process by which the aptitudes, skills and abilities of employees to perform
specific jobs are increased.
According to Edwin B. Flippo defines, Training is an act of increasing the
knowledge and skills of an employ for performing a particular job.

Training enables an employ to do his present job more efficiently and prepare him for
higher level job.

A Trainee learns new habits, refined skills and useful knowledge during the training
that helps to improve the performance.

Training is practice based and company specific.

Training objectives should be set in terms of changes needed in behavior and

performance.

How training helpful

Increase knowledge and skills for doing a particular job.

Focuses attention on the current job.

Concentrates on individual employees, changing what employees know-how they

work, their attitude towards their work on their interaction with their co-workers.

Tends to be more narrowly focused and oriented towards short term performance
concerns.

Training is job oriented.

Training is one shot deal.

Training seeks to meet the current requirements of the job and the individual.

Training is mostly the result of initiatives taken by management.

Needs for training

Newly recruited employees require training so as to perform their task effectively.

Training is necessary to prepare existing employees for higher level jobs (promotion).

Training is necessary when a person moves from one job to another (transfer).

Training is necessary to make employees mobile and versatile.

Training is needed to make employees more productive and useful in the long-run.

Training is necessary for solving operational problem.

Major Values of training in ESCORTS LTD.

Increase in productivity.

Better and economically use of resources.

Reduced Supervision.

Fill manpower needs.

Increasing organizational stability and flexibility.

Better management.

Reduced learning time

THEORY OF TRAINING
Training is a learning experience in that it seeks a relatively permanent
change in an individual that will improve his/her ability to perform on the job. We typically
say training can involve the changing of skills, knowledge, attitudes or social behavior. It
may mean changing employees, how they work, and their attitudes toward their work of
their interaction with their co-workers or supervisors.
The essential elements in any commercial enterprise are materials, equipment and human
resource. Training allied to the other human resource specializations within management,
ensures a pool of manpower of the required level~ of expertise at the right time. But firstly

consider the attention given by an average organization to the provision of materials,

machinery and equipment. Then compare the commitment to the third essential factor in
then production cycle, via: human resources. One of the most important factors in his
regard is the traditional view of training and trainers. They are seen as an expense, a
service, as second rate to production or as a necessary evil. Training has tended to fall
behind other management activities, especially in the planning phase. It is often carried out
as a reaction to immediate needs, a patch up operation in many cases, instead of an ordered
activity. Training and Development is especially designed to enhance the competency of
managers and workers dealing with a variety of organizational functions. Training and
Development is a process through which the goals of management development can be
achieved. Investment in Training and Development has come to be considered as an asset
for organizational development or in other words, Training is indispensable for effective
organizational development. Earlier, training was almost exclusively trainer Escorts ltd and
it was not need based. The trainer (training institute) determined the objectives of the
course, its duration, its contents and format etc. On many occasions training was of a
pedagogic nature with the trainer in complete control of the direction of the training.
Moreover, the alignment of the corporate goal was missing. The views of the trainees were
rarely sought or even if they were, it was with a condescending attitude. Due to all these
reasons the bottom-line contribution of training or the organizational development was less.
All employees are expected to participate in company sponsored training programs
considered necessary for enhancing their work skills. We realize that in todays constantly
changing environment, our services have to be better than those of our competitors.
Therefore, training

opportunities are offered through specialized training programs

conducted by in-house instructors, instructors from the industry, or by experts in the field.
Training Need Assessment
The Human Resources Department in consultation with the individual, his/her
supervisor and the Head/Chief of the department assess training needs. The performance
management system as well as feedback by employees across the organization is used for
collaborating the training needs.

Training Calendar
A Training Calendar is prepared and circulated at the beginning of the year.
This carries details about the training programs that will be conducted during the course of
the year. In-hour and external training are held on behavioral as well as specific job related
skills.
Training Evaluations
Training programs are evaluated by Human Resources regularly to ascertain
the value being added to the employees.
Managers nominate employees for training.

Attendance at the training classes is

obligatory. You are encouraged to make the best use of these opportunities provided by the
company to enhance your professional skills. Training records will be maintained in the
Personal File of each employee, for review at any time.

Training objectives and strategies

Having identified the training needs based on the various analyses discussed
above, the next logical steps are to set training objectives in concrete terms and to decide
on the training strategies to be adopted to meet these objectives. The training needs
basically highlight the gap between the existing and desired repertoire of knowledge
attitude and skills at individual, group and organizational level to enable the employees to
contribute towards the realization of organizational objectives at optimum efficiency. The
training effort thus will have to aim at filling in this gap by clearly stating the objectives in
quantitative and qualitative terms to be achieved through training. Such an exercise will
also enable the training specialists to evaluate, monitor and measure the extent to which
stated objectives have been met through training intervention. As the training objectives are
related to organizational objectives, the involvement of the top management will be
necessary to ensure that the two sets of objectives are integrated.

It will be desirable to use the following criteria in setting training objectives

Specific requirements of individuals and organizations so as to achieve integration of

the two.

Roles and tasks to be carried out by the target group.

Relationship with other positions vertically and horizontally and technological

imperatives.

Relevance, applicability and compatibility of training to work situations.

Training as a means of bringing about a change in behavior back on the job.

Behavior including activities that can be observed, measured and/or recorded

The expected change in behavior must be useful, closely related to and subject to
maintenance in the work environment.

More specifically the following steps could be involved in setting training objectives

Identification of the behavior where change is required.

Nature and size of the group to be trained in terms of prior training, situational factors,
formal education.

Existing behavior defined in terms of ratio, frequency, quality of interaction and

supervision, routines and repetitiveness, innovations, omissions, error, etc.

Desired behavior aimed at improving the existing condition stated preferably in

quantitative such as ratio, frequency of occurrence, reporting by exceptions, selfmonitoring mechanisms etc.

Operational results to be achieved through training stated in terms of increase in

efficiency and effectiveness criteria such as productivity, cost, down time, turnover,
time for innovations and creativity.

Indicators to be used in determining changes from existing to the desired level in terms
of ratio and frequency.

Depending on the objectives set, the next step is to decide on the strategy of training
involving the following:

Classification of objectives in terms of purposes:

Corrective objectives

Maintenance/status-quo objectives

Problem solving objectives, and

Innovative objectives.

Classification of objectives in terms of levels of learning

Skills of motor responses, memorization and simple conditioning.

Adaptation level where one is gaining knowledge or adapting to a simple environment;

Interpersonal understanding and skill.

Values of individuals and groups.

On-the-job or off-the job training.
In house or external training.
Individual or group training.
Horizontal, vertical or diagonal/mixed group.
Changes required, if any, in the existing work roles, organizational relationships,
system requirements, process of supervision and alternative structures.

HOW TO BE CREATIVE?
Postpone judgments: Dont reject any idea
Create alternative frames of references
Break the boundary of thinking
Examine the different aspect of the problem
Specify that resources and environment
Make a wish-list of solutions
Borrow ideas from other fields

work

Look for the processes to change or eliminate

Think up alternative methods
Adopt another persons perspective
Question all assumptions

TRAINING NEEDS

Organizational

Individual

- Identified through the

corporate MBO serious.
It gives the necessary
information,

regarding

the gaps which prevails

Operative PersonnelManager

Training

needs

Personnel

through

employees

rating system

identified
merit

External Training

Internal

-Exposure approved

Needs identified through

by

appraisal

divisional

director
monitored
corporate
and

Trainingsystem,

and

and

program monitored by

by

corporate training and

training

development manager.

development

manager

TYPES OF TRAINING METHODS

The training methods which are generally used in an organization are classified into
two i.e.
a)

On the job
The most important type of training is on the job training. The experience of actually doing
something makes a lasting impression and has a reality that other types of training cannot
provide. There are several types of training program which make use of on-the-job training
concept which are as follows:

Job Rotation

Internship training

Apprenticeship

b)

Off the job

This is a type of training which is imparted to the employees through education programs,
simulators and training aids etc. The off the job training includes the following:

Case study method

Incident method

Management Games

Role playing

Seminars

Training, as a process of long tem learning is essentially a developmental tool.

Through, effectively utilizing this tool, the organization expects to achieve career
objectives.

Sensitize employees towards their role in achieving the organizational vision of

Leadership through Differentiation.

Contribute towards the career progressions of the employees by importing knowledge

of an additional or reinforcing nature, developing skills and bringing about desired
attitudinal changes among them. This would not merely prove effective in assisting
them to achieve organizational goals but also enable enhancement of their self esteem
and self confidences to face external challenges.

Ours is changing and dynamic organizations which have to pay considerable emphasis
on training and retraining its employees to enable them to be competent committed and
have the capacity to change according to the external and internal demands and
pressures.

Training of employees is not merely the responsibility of the management or the

training cell alone, but the responsibility of department managers as well.
Accordingly, the human resource department must enable their involvement in the
process of employee training and development.

Training steps
There are four basic steps in carrying out the training function:
Assessment of Training needs (A)

 Designing the training action plan (B)

Administration of training (C)
Retraining and Reinforcement of training (D).
(A) Assessment of training needs
There are five steps towards the assessment and analysis of training and development
of the organization.

Collection of information through interviewing and discussing with key personnel both
inside and outside the organization or specific departments; observing the work place,
working conditions, processes and outcomes; examining records, other written
information and annual employee appraisal.

Compare performances of each department and each employee against objectives,

targets and standards set for them and keeping in mind future work requirements in the
organization.

Identify cause of problems faced by the organization to enable the management to train
the employees in handling the problems as well as solving the problem in a satisfactory
manner.

Segregate identified problems into problems requiring staff development action such as
training and into problems requiring other management actions, so that these problems
are accurately addressed.

Prioritize training actions in accordance to where the training need is more urgent.

(B) Designing training programme

Having completed the ground work of training needs and assessment whereby training gaps
are identified and prioritized, the next step is to design the training action plan which
involves the following:
Types of training addressing various training needs:

Entry training involving new recruits and employees required to take a new job.

Problem resolution training to meet a shortfall or deficiency in job performance.

Training for change to prepare employees for job identified in near future.

Development to equip employees to meet organizational changes in future.

Training imparted in any type would be skill, attitude or knowledge based training or
a combination of the three.

Identifying the Trainee groups.

Identifying the most effective training methodology.

Classroom training outside the organization through external agencies for meeting
specific job function related needs which cannot be imported internally. This is
normally the case when the training involves specific are as and smaller numbers
making it uneconomical to conduct the program internally. These external sources must
be chosen with care and must be able to fulfill the organization's analyzed training and
development needs. These training methods must be supplemented by enabling the
trainees to apply in the work place and translating into job competence the knowledge
and skill gained through such training.

Classroom training within the organization through external and internal agencies:
These programs must be carefully designed to ensure that they mirror the trainee
groups requirements individually and collectively. Like the external courses, when
designing these programs, one must ensure that the training objectives are expressed in
terms of job competence as well as knowledge and skill.

This method of training is must effective in bringing together employees in larger

numbers to address common training needs. The training faculty is critical to the
success of such training programs. The importance and the initiality of the need for
proper communication of knowledge and ideas dictate that the selection of faculty
members must be made keeping the receiver in mind.

On the job training enables the employees to learn the job while actually carrying out
the tasks involved in the job. All new recruits joining the organization are required to
undergo induction program with planned work experience in various departments
associated with the employees own department for a short duration to equip the
employee with basic knowledge fundamental to his job function.

Entry level training is normally imparted through internal on-job and off-job training
methods.
Problem resolution training, training for change and development related training may be
imported through internal or external on-job or off-job training methods depending on
program design, objective and target size.

Purposes of training & development evaluation

The five main purposes of training evaluation are:

Feedback: It helps in giving feedback to the candidates by defining the objectives and
linking it to learning outcomes.

Research: It helps in ascertaining the relationship between acquired knowledge,

transfer of knowledge at the work place, and training.

Control: It helps in controlling the training program because if the training is not
effective, then it can be dealt with accordingly.

Power Games: At times, the top management (higher authoritative employee) uses the
evaluative data to manipulate it for their own benefits.
Intervention: It helps in determining that whether the actual outcomes are aligned with
expected outcomes.

Evaluation of training programme

Evaluation helps in controlling and correcting the training programme:

Reactions: Trainees reactions to overall usefulness of training including the coverage

of the topics, method of presentation, and the techniques to clarify things, often throw
light on the effectiveness of the programme.

Learning: Training programme, trainers ability and trainees ability are evaluated on
the basis of quantity of content learned and time in which it is learned and learners
ability to use or apply the content learned.

Job Behavior: This evaluation includes the manner and extent to which the trainee has
applied his learning to his job.

Organization: This evaluation measures the use of training, learning and change in the
job behavior of the department / organization in the form of productivity, quality,
morale, sales turnover and the like.

Ultimate Value: It is the measurement of ultimate results of the contribution of the

training programme to the company goals like survival, growth, profitability, etc. and
individual goals like development of personality and social goals like maximizing
social benefits.

ABOUT DEVELOPMENT
Definition:
In the works of Michael J. Jucius, Executive development is the programme by which
executive capacities to achieve the desired objectives are increased.
Mr. Jucius has written that Programme must be related to the development of various
interrelated matters, factors and needs. Executive capacities involve different individual
abilities of present and prospective managers at different levels of management.
In the words of Koontz and ODonnel, Developing a manager is a progressive process
in the same sense that educating a person is neither development nor education should be
thought of as something that can never be completed, for there are no known limits to the
degree to which one may be developed or educated.
Executive development is a planned systematic and continuous process of learning and
growth by which managers develop their conceptual and analytical abilities to manage.

Development is concerned with overall personality of the candidate.

Development improves performance of the mangers by giving them opportunity for

growth and development.

OBJECTIVES OF DEVELOPMENT

Development is continuous ongoing activity.

Development aims at improving total personality of an executive.

Development aims at meeting future needs.

Development helps the manager to acquire knowledge, skills and abilities.

Executives can show superior performance on the job.

Development efforts help executives to realize their own career, goals and aspirations in
a planned way.

METHODS OF DEVELOPING MANAGERS

In basket

Business Game

Case Study
Role Play

Sensitivity Training

Behavior
On the job experience

Coaching

Understudy

4. Organizational Knowledge

Job Rotation

5. General Knowledge

Multiple Management
Special Courses

Special Meetings

Special Meetings

1. Decision Making Skills

2. Interpersonal Skills

3. Job Knowledge

Distinctions between Training and Development

LEARNING DIMENSION
Meant For
Focus
Scope
Goal

TRAINING
Operatives
Current Job
Individual Employee
Fix Current Skill Deficit

Initiated By
Content

Management
Specific
Job

Time Frame

Information
Immediate

DEVELOPMENT
Executives
Current and Future Jobs
Work Group & Organization
Prepare For Future Work

Demands
The Individual
Related General Knowledge
Long Term

Global training standard of ESCORTS

All associates are certified in basic job skills prior to assuming jobs.

Performance analysis is used to determine training needs.

Organization has functioning training committee.

Each associate has an individual annual training plan.

Job experts are trained as trainees.

Training is performance based.

Organization has an overall training plan which supports the business plan.

Learning guides exist for all key jobs.

Success of transfer of training into workplace is measured through recertification /

performance appraisal.

Accountability for training is a performance standard of each manager.

CHAPTER-3
COMPANY PROFILE

The Escorts Group is among India's leading engineering conglomerates operating in

the high growth sectors of agri-machinery, construction & material handling
equipment, railway equipment and auto components.
Having pioneered farm mechanization in the country, Escorts has played a pivotal role in
the agricultural growth of India for over five decades. One of the leading tractor
manufacturers of the country, Escorts offers a comprehensive range of tractors, more than
45 variants starting from 25 to 80 HP. Escort, Farmtrac and Powertrac are the widely
accepted and preferred brands of tractors from the house of Escorts.
A leading material handling and construction equipment manufacturer, we manufacture and
market a diverse range of equipment like cranes, loaders, vibratory rollers and forklifts.
Escorts today are the world's largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer.
Escorts have been a major player in the railway equipment business in India for nearly five

decades. Our product offering includes brakes, couplers, shock absorbers, rail fastening
systems, composite brake blocks and vulcanized rubber parts.
In the auto components segment, Escorts is a leading manufacturer of auto suspension
products including shock absorbers and telescopic front forks. Over the years, with
continuous development and improvement in manufacturing technology and design, new
reliable products have been introduced.
Throughout the evolution of Escorts, technology has always been its greatest ally for
growth. In the over six decades of our inception, Escorts has been much more than just
being one of India's largest engineering companies. It has been a harbinger of new
technology, a prime mover on the industrial front, at every stage introducing products and
technologies that helped take the country forward in key growth areas. Over a
million tractors and over 16,000 construction and material handling equipment that have
rolled out from the facilities of Escorts, complemented by a highly satisfied customer
base, are testimony to the manufacturing excellence of Escorts. Following the globally
accepted best manufacturing practices with relentless focus on research and development,
Escorts is today in the league of premier corporate entities in India.
Technological and business collaboration with world leaders over the years, Globally
competitive indigenous engineering capabilities, over 1600 sales and service outlets and
footprints in over 40 countries have been instrumental in making Escorts the Indian
multinational. At a time when the world is looking at India as an outsourcing destination,
Escorts is rightly plEscortsd to be the dependable outsourcing partner of world's leading
engineering corporations looking at outsourcing manufacture of engines, transmissions,
gears, hydraulics, implements and attachments to tractors, and shock absorbers for heavy
trailers

and

armored

tanks.

In today's Global Market PlEscorts, Escorts is fast on the path of an internal transformation,
which will help it to be a key driver of manufacturing excellence in the global arena. For
this we are going beyond just adhering to prevailing norms, we are setting our own
standards and relentlessly pursuing them to achieve our desired benchmarks of excellence.

The Escorts Group is among India's leading engineering conglomerates operating in

the high growth sectors of agri-machinery, construction & material handling
equipment, railway equipment and auto components.
Having pioneered farm mechanization in the country, Escorts has played a pivotal role in
the agricultural growth of India for over five decades. One of the leading tractor
manufacturers of the country, Escorts offers a comprehensive range of tractors, more than
45 variants starting from 25 to 80 HP. Escort, Farmtrac and Powertrac are the widely
accepted and preferred brands of tractors from the house of Escorts.
A leading material handling and construction equipment manufacturer, we manufacture and
market a diverse range of equipment like cranes, loaders, vibratory rollers and forklifts.
Escorts today are the world's largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer.

Escorts have been a major player in the railway equipment business in India for nearly five
decades. Our product offering includes brakes, couplers, shock absorbers, rail fastening
systems, composite brake blocks and vulcanized rubber parts.
In the auto components segment, Escorts is a leading manufacturer of auto suspension
products including shock absorbers and telescopic front forks. Over the years, with
continuous development and improvement in manufacturing technology and design, new
reliable products have been introduced.
Throughout the evolution of Escorts, technology has always been its greatest ally for
growth. In the over six decades of our inception, Escorts has been much more than just
being one of India's largest engineering companies. It has been a harbinger of new
technology, a prime mover on the industrial front, at every stage introducing products and
technologies that helped take the country forward in key growth areas. Over a
million tractors and over 16,000 construction and material handling equipment that have
rolled out from the facilities of Escorts, complemented by a highly satisfied customer
base, are testimony to the manufacturing excellence of Escorts. Following the globally

accepted best manufacturing practices with relentless focus on research and development,
Escorts

is

today

in

the

league

of

premier

corporate

entities

in

India.

Technological and business collaboration with world leaders over the years, globally
competitive indigenous engineering capabilities, over 1600 sales and service outlets and
footprints in over 40 countries have been instrumental in making Escorts the Indian
multinational. At a time when the world is looking at India as an outsourcing destination,
Escorts is rightly plEscortsd to be the dependable outsourcing partner of world's leading
engineering corporations looking at outsourcing manufacture of engines, transmissions,
gears, hydraulics, implements and attachments to tractors, and shock absorbers for heavy
trailers

and

armored

tanks.

In today's Global Market PlEscorts, Escorts is fast on the path of an internal transformation,
which will help it to be a key driver of manufacturing excellence in the global arena. For
this we are going beyond just adhering to prevailing norms, we are setting our own
standards and relentlessly pursuing them to achieve our desired benchmarks of excellence.

Dear Shareholder,
The Indian economy during the year has grown in all sectors and
there has been a supporting growth in consumption that has given
the country a GDP growth of 8% in real terms. Ironically however,
the farm sector was confronted with many adversities that have
reduced its growth to mere 3% and was expected to decline further.
Whilst the country had a normal monsoon and harvested a good standing crop, the support
price given by the Government to the farmers was unattractive in fact it was lower than
the cost at which India was proposing to import wheat. This has upset the agriculture
market very extensively. The lapse of this crop income limited the farmers from raising

fresh loans for buying equipment and for some farmers they had to repay old loans. There
has been higher NPA from farm loans and hence lower lending by banks.
The above vicious cycle is proposed to be corrected a year later in the next wheat crop to
be harvested in March-April 08. The Food and Agriculture Ministry has already fixed the
support price and the standing crop is assessed to be good. The farmers cash flow will thus
become positive and business will begin to grow again.
AGRI MACHINERY

Your company with a long term view has been consistently improving its fundamentals.
Towards this end, we have expanded our product offering and technologically advanced the
tractors to become more competitive for specific products like

Lighter axle rice plantation tractor for South India

Orchard & Vineyard tractors
Heavy duty large tractors in the range of 70-80 hp for four wheels drive
suitable for heavy duty haulage and use in hilly terrain.

We have established our brand Farmtrac which carries a strong reputation of quality
products and we will build on this brand further. Our manufacturing quality has become
consistent and the manufacturing processes have been refined. All these will help us gain
market share and give incremental growth beyond the countrys industry volume growth.

In the past year we lost substantially on our export volumes because of weakening of the
Dollar by 12-14% which has eroded our entire working margin of sale for export
destinations. As a result we had to withhold exports to the Dollar markets mostly to USA
where we have our own company and organization to distribute service and sell. We have
attractive margins and growing volume sales in export markets of Africa, Europe and South
East Asia that will continue to bring good export volumes for the company.

We have transformed the management leadership of our farm equipment and tractor

business by bringing in a new CEO who will cultivate a strong marketing culture in our
company, as well as make strong focused efforts to unleash a cost sensitive management
culture and monetize the enormous value creation opportunities that this business is sitting
on. All of us at Escorts are very optimistic about showing significant gains and growth in
our farm machinery business by growing in volumes and concurrently reducing the cost of
operations and achieving significant profitability from Agribusiness.

The companys market network of dealers has intensified and we are aggressively targeting
market share gains through new products for niche markets. This will strengthen our brand
appeal and grow our business volumes over the next 2 years to reach 75,000 - 80,000
tractors. Tractor engines are being sold for industrial stationary use for which there is a
very attractive market opportunity, the market size at present being around Rs. 2,500
3000 crore annually. In our efforts to add more revenue from the existing investments, we
have geared up to gain a sizeable share of this engine market.

Your company is bringing in technology for farm implements from European companies to
add more productivity to tractors and assist the farmer to improve his horticulture yields to
meet the retail activity started by private sectors. Additionally, for water management we
are going to be distributing and selling laser land leveling equipment.

Escorts with the knowledge of customer market and farmer opportunity is now packaging a
holistic offering to the farmer specific for improving his present yields and ultimately his
income from farming.

In summary as our fortunes linked with the performance of the agriculture sector rise with
government interventions and policies, the excitement within this business at Escorts is in
unlocking its true wealth potential.

CONSTRUCTION MACHINERY ECEL

Our subsidiary company Escorts Construction Equipment Limited is in an equally exciting

mode of business opportunity and demand growth. We have experienced extraordinary
growth in demand and actual execution despite having limited manufacturing infrastructure
till we move to our new premises in April 08. The results are excellent as you would see
from the comparative in-depth analysis of top line, bottom line and volume line that is
reproduced below:

Actuals

Estimated

Growth

31.3.2009 31.3.2010
Equipment Sales Volume (Units) 2547
3064

31.3.2011

Previous Year

4350

42%

Gross Sales Turnover (Rs. Crs.) 315.67

408.21

585

43%

Net Sales Turnover (Rs. Crs.)

279.27

364.56

520

43%

Profit Before Tax (Rs. Crs.)

26.76

26.58

40

50%

over

ECEL has wisely well invested in a very intelligent and modern manufacturing plant
capable of handling an annual volume of 14,000 machines per annum. The major products
to be built at this plant would be:

Compaction Road Rollers

Pick and Carry Cranes

Forklift trucks

Loaders & Excavators

Slew Cranes

All the above machines would be in serial production at the new plant location from MayJune

09.

The retained earnings of this company are going to get stronger as the products which now
have a growing demand are more profitable than the Pick and Carry Cranes. The road
programmes of India are now becoming major activities and that generates a large demand

for

the

products

we

manufacture.

ECEL has a mature well manned product designing department to design and develop
improvements on our present machines so that the products offered to the markets are
always comparative with the international branded products marketed. We also have
exclusive Distribution Rights for India for some heavy machines that sell very well in
major worksites in India such as:

Crawler Cranes up to 280 tones

Heavy duty and special purpose forklift trucks
Road paving machines
Motor graders
Tower Cranes
Equipment for Power and Telecom Utilities

For each of these products we have chosen a very competitive design from a reputed
manufacturer who would give us the supply support to meet the demands of our markets.
These arrangements can be converted to licensed manufacturing programmer at a later date
if the demand of volumes from the market warrants local production initiatives. ECEL will
always be a high performance and high growth company because Construction Industry
and business in India is a high growing area.

AUTO SHOCK ABSORBERS AND RAILWAY EQUIPMENT ASP & RED

Escorts also has a component business of Auto Shock Absorbers and Railway Equipment.
The railways have growing opportunities with traffic loads for both freight and passengers
which warrants modernisation for which we have the products and are also looking at
relationships and synergies with international companies for a two way exchange of
technology products so that we have a bigger canvas to grow in the context of our future.
Our plant in Rudrapur has also given us good economic savings of tax and business
growth.

Likewise in Auto Shock Absorbers, we are refreshing our entire manufacturing facilities to
primarily export the majority of our production that progressively will be actualised in the
year 2009-10.

We have acquired excellent human skills at all the key function areas of the company and
their collective efforts will transform Escorts into a high performance company with
strengths of marketing and financial controls. This change will be progressive and will be
reported by the management on a quarterly basis with the year ending in September 08.
These results will also be reflected in the price quotation in the Stock Exchange of our
listing because we hope to have good growth on top line and bottom line.

The fitness of the company is better than it has ever been and we owe this all to the
collective intellectual minds that now serve the organisation to which I am very grateful for
their commitment to the company and to their profession. I also want to plEscorts on record
the cooperation we have had from the labour union that had a very constructive and
progressive approach with the management to help the company grow and with that growth
help the employees grow too.

I would also like to plEscorts on record the great help and advice I have had from the
Board of Directors who have been very supportive in this transition period till we actually
reinvented ourselves.

Rajan Nanda
Chairman and Managing Director
HISTORY

The genesis of Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda and Mr. Yudi
Nanda, launched a small agency house, Escorts Agents Ltd. in Lahore. Over the years,
Escorts has surged ahead and evolved into one of India's largest conglomerates. In this
journey of six decades, Escorts has had the privilege of being associated with some of the
world leaders in the engineering manufacturing spEscorts like Minneapolis Moline, Massey
Ferguson, Goetze, Mahle, URSUS, CEKOP, Ford Motor Company, J C Bamford
Excavators, Escort LTD, Claas, Carraro, Lucky Goldstar, First Pacific Company, Hughes
Communications, Jeumont Schneider, Dynapac .These valued relationships be it
technological or marketing, are our highly cherished experiences treasures, which have
helped us inculcate best in class manufacturing practices and to emerge as a technologically
independent world class engineering organization.

1944 - Launch of Escorts (Agents) Ltd.

1948 - Pioneered farm mechanization in the country by launching Escorts Agricultural

Machines Limited, with a franchise from the U.S. based Minneapolis Moline, for
marketing tractors, implements, engines & other farm equipment. Launch of Escorts
(Agriculture

and

Machines)

Ltd.

1949 - Franchise of Massey Ferguson tractors for northern India

1951 - Escorts established Indias first private Institute of Farm Mechanisation at Delhi.
1953 -Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd. merged to form
Escorts Agents Pvt. Ltd.

1954 - 1st industrial venture of Escorts to manufacture piston rings in collaboration with
Goetze of Germany, in an era when joint ventures of Indian firms with foreign companies
were virtually unheard of.

1958 - Started importing Massey Ferguson tractors from Yugoslavia for marketing the same
in

India.

1959 - Collaboration with Mahle of Germany to manufacture pistons. Soon, Escorts

became the largest producer of piston assemblies in India.
1960 - Set up of Escorts Limited

1961- Setting up of manufacturing base at Faridabad for manufacture of tractors in

collaboration with URSUS of Poland and 50% indigenous components. Launch of Escort
brand of tractors. Collaboration with CEKOP of Poland for manufacture of motorcycles
and scooters. Escorts moves into high gear by nurturing the two wheeler culture. The first
Rajdoot motorcycle rolls off the assembly line.

1969 - Escorts Tractors Limited was born. A technical and financial joint venture with the
global giant Ford Motor Company, USA, to manufacture Ford tractors in India. The years
ahead saw Escorts grow as the largest tractor manufacturer in India.

Escorts Institute of Farm Mechanisation (EIFM) established at Bangalore.

Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial

democracy comes into being.

1971 - 1st February, the first tractor FORD 3000 rolled out of the factory.
Escorts diversifies and starts manufacturing construction equipment.

1974 - Crossing national boundaries, Escorts exports for the first time. After winning a
global tender, 400 tractors were exported to Afghanistan, which was perhaps the world's
largest ever airlift of tractors.

1976 - FORD 3600, an advancement in Farm Mechanisation launched. Trial production of

in-plant manufacturing of engine parts (Block & Head).

1977 - Escorts enters the world of self-developed technology by setting up its first
independent R&D Center. Escorts Scientific Research Centre marked its beginning at
Faridabad by developing its own Engines for E-27 and E-37. Due to constant technology
absorption, indigenisation level touched 72% for FORD tractors. 2nd plant at Bangalore for
manufacturing piston assemblies was set up.

1979 - Collaboration with JCB Excavators Ltd., UK for manufacture of excavators.

1980 - Foray into healthcare, Escorts Hospital and Research Center set up in Faridabad.
1983 - Escorts Tractors Limited (ETL) established a state-of-the-art research and
development centre to spearhead newer breakthroughs in Farm Mechanisation and to
maintain industry leadership. Line concept introduced for engine block machining. 11,000
ton floating dry-dock Escorts I launched.

1984 -

JV

Escorts

Escort

LTD

to

manufacture

motorcycles

1984 - Signing of agreement with the Japanese bike giant Escort LTD to manufacture
motorcycles with Escort LTD technology. Collaboration with Jeumont Schneider of France
to manufacture EPABX systems Collaboration with Dynapac of Sweden to manufacture
vibratory road compactors

1985 -

Escorts Tractors

Limited

(ETL)

offered

its

first

Bonus

Issue

(1:1).

1988 - Escorts Heart Institute and Research Centre (EHIRC), a world class cardiac care
facility launched in New Delhi.

1989 - Joint Venture with Claas of Germany to manufacture harvester combines.

1990-91 - First Public Issue in February 1991, over-subscribed four times. Shares listed on
Delhi and Bombay Stock Exchanges.

1993 - FORD 3620 tractor launched.

1996 - Disengagement of joint venture collaboration with New Holland and launch of
FARMTRAC Tractor.

1997 - Joint Venture with Carraro of Italy for manufacturing and marketing of transmission
and axles.

Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile
Communications.
1998 - POWERTRAC series of tractors launched.

MoU was signed with Long Manufacturing Company, USA for setting up a Joint Venture in
USA.

1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed for assembly,
manufacturing and marketing of Farm Machinery.

2004 - Divested Escotel Mobile Telecommunications to Idea Cellular

TS16949 certification for Agri Machinery Group.

2005 Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis Healthcare.
2006 - Divested in Carraro India Ltd.

Set up new manufacturing facility in Rudrapur for manufacture of new range of railway
equipment.

MISSION STATEMENT
To grow our company by providing innovative, strong and high performance products and
solutions

to

meet

our

global

customers'

needs.

We will support our world class products by providing superior customer care. Our care
extends to the environment and the community.
We want to help build a better future for our children, where hard work and dedication are
given its just reward.

CHAPTER-4
DATA ANALYSIS AND
INTERPRETATIONS

Q.1 What kind of training is given in your company?

Options
Technical
Behavioral
Both

Percentage of respondents
20
20
60

Table 4.1: Kinds of training

Figure 4.1: Kinds of training

INTERPRETATION:
The above table shows that, 60% of the employees say that they are gets both technical and
training, while 20% of the employees say that they are get behavioral training and rest 20%
of the employees say that they are get technical training.

Q.2 Are trainees sharing their experience with the subordinate, colleagues
and senior members?
Options
Frequently
Occasionally
Rarely
Never

Percentage of respondents
5
60
20
15

Table 4.2: Levels of sharing the training experience

Figure 4.2 Levels of sharing the training experience

INTERPRETATION:
The above table shows that, 60% trainees share their training experience occasionally. 20%
trainees share their training experience rarely, 15% trainees share their training experience
never and 5% trainees share their training experience frequently.

Q.3 Should the training need change with the change in your
organization?
Options
Always
Sometimes
Never

Percentage of respondents
20
70
10

Table 4.3: The training needs change

Figure 4.3: The training needs change

INTERPRETATION:
The above table shows that, 70% trainees say that there is a need for change sometime in
training programmes while 20% trainees say that there is a need for change always in
training programmes and 10% trainees say that there is a need for change never in training
programmes.

Q.4 Should the training method be change with the change in

organization policy?
Options
Frequently
Occasionally
Rarely
Never

Percentage of respondents
15
70
10
5

Table 4.4: Training method be change with change in organization

Figure 4.4: Training method be change with change in organization

INTERPRETATION:
The above table shows that, 70% occasional change in the method of training, 15% say that
frequently change in the method of training while 10% rarely change in the method of
training and rest 5% say never.

Q.5 To what extent the construction faced by the trainees?

Options
Yes
Sometimes
No

Percentage of respondents
5
15
80

Table 4.5: Construction faced be the trainees during training

Figure 4.5: Construction faced be the trainees during training

INTERPRETATION:
The above table shows that, 80% not very few trainees face constraints during training
programmes while 15% sometime very few trainees face constraints during training
programmes and rest 5% very few trainees face constraints during training programmes.

Q.6 Do you think that the training needs identification process

adopted by ESCORTS Ltd. Is in the right way of identification
of training need?
Options
Yes
No
Dont know

Percentage of respondents
50
10
40

Table 4.6: Effectiveness of training need identification process

Figure 4.6: Effectiveness of training need identification process

INTERPERTATION:
The above table shows that, 40% of the employees are doing know aware about the training
need identification process while 50% of the employees are aware about the training need
identification process and rests 10% of the employees are not aware about the training need
identification process.

Q.7 Generally what type of training does ESCORTS provide?

Options
Soft skills training.
Job related training.
Management development

Percentage of respondents
20
30
50

programme.
Table 4.7: Types of training provided by company

Figure 4.7: Types of training provided by company

INTERPERTATION:
The above table shows that, 20% employees says that soft skill training are provide by the
company and 30% agreed with job related training while 50% agreed with management
development programme.

Q.8 Do you think training programs given by the company provides

satisfaction?
Options
Always
Mostly
Sometime
Never

Percentage of respondents
5
75
15
5

Table 4.8: Satisfaction from the method of training

Figure 4.8: Satisfaction from the method of training

INTERPRETATION:
The above table shows that, 75% mostly of the trainees are satisfied with the methods of
training while 15% sometimes, 5% never and rest 5% always of the trainees are satisfied
with the method of training.

Q. 9 Does training motivate you to accomplish your job in desired

manner?

Options
Yes
No

Percentage of respondents
70
30

Table 4.9: Training motivates you to accomplish your job

Figure 4.9: Training motivates you to accomplish your job

INTERPRETATION:
The above table shows that, 70% people say yes and 30% say no. So, maximum persons
agree that training motivates for accomplishing the job in desired manner.

Q.10 Do you think that training offered minimize accidents and damage
to the equipments of the organization?

Options
Yes
No

Percentage of respondents
60
40

Table 4.10: Training offered minimize accidents and damage

Figure 4.10: Training offered minimize accidents and damage

INTERPRETATION:
The above table shows that, 60% persons agreed with the view that training minimizes
accidents and damage to the equipments and rest 40% are not agreed.

CHAPTER-5
RECOMMENDATIONS AND
CONCLUSIONS

RECOMMENDATIONS

The measurement of ultimate results of the contribution of training programme to

the company goals like survival, growth, profitability should be done.

Training need analysis system of the organization should satisfy the staff members,
employees, workers.

More practical sessions should be involved to make training session more

interactive and lively.

Training is properly the responsibility of any one in the management who wants to
attain a particular objective.

To be effective, training must use tested principles of learning.

Training should be entertaining by sharing more videos and audios.

Trainee reaction to overall usefulness of training including the coverage of the

topics, methods, of presentation and techniques to clarify through effectiveness of
programme.

CONCLUSIONS

The purpose of training is to help meet company objectives by providing opportunities

for employees at all organizational levels to acquire the requisite knowledge skills, and
attitude.

The objectives and scope of a training plan should be defined before.

Its development begun in order to provide a basis for common agreement and
cooperative action.

The techniques and process of a training program should be related directly to the needs
and objective action.

The purpose behind the training of personnel is to assist line management in the
determination of training needs and in the development, administration, conduct and
follow up training plan.

BIBLIOGRAPHY

BOOKS

Chabbra T.N., Human Resources Management, Dhanpat Rai & co. (p) Ltd. India, Ninth
Edition.

Kothari C.R., Research Methodology, New Delhi, New Age International Publisher,
Second Edition.

Gupta C.B.,Human Resource Management, Sultan Chand &Sons, Sixth Edition.

Ashwathapa K.,Human Resource Management,Mcgiaw Hill, Fourth Edition.

Prasad L.M., Organizational behavior, Sultan Chand & Sons, Fifth Edition.

Sites referred

www.escorts-group.com

www.tradeindia.com

www.ecel.com

www.passionhr.com

www.citehr.com

ANNEXURE

QUESTIONNAIRE
Q.1 What kind of training is given in your company?
a) Technical
b) Behavioral
c) Both

Q.2 Are trainees sharing their experience with the subordinate, colleagues and senior
members?
a)

Frequently

b)

Occasionally

c)

Rarely

d)

Never

Q.3 Should the training needs change with the change in organization policies?
a)

Frequently

b)

Occasionally

c)

Rarely

d)

Never

Q.4 Should the training method be change with the change in organization policy?
a)

Frequently

b)

Occasionally

c)

Rarely

d)

Never

Q.5 To what extent the construction faced by the trainees?

a) Yes
b) Sometime
c) No

Q6. Do you think that the training needs identification process adopted by
ESCORTS Ltd. In the right way of identification of training need?
a) Yes
b) No
c) Dont know

Q.7 Generally what type of training does ESCORTS provide?

a) Soft skills training.
b) Job related training.
c) Management development programme.
Q.8 Do you think training programs given by the company provides satisfaction?
a)

Always

b) Mostly
c)

Sometime

d)

Never

Q. 9 Does training motivate you to accomplish your job in desired manner?

a) Yes
b) No

Q.10 Do you think that training offered minimize accidents and damage to the
equipments of the organization?
a) Yes
b) No