N.P.

Maheshwari, Parul Garg, TRAINING AND DEVELOPMENT PROGRAMMES IN BHEL MAKING IT - A Healthy, Wealthy
and Wise Corporate

TRAINING AND DEVELOPMENT PROGRAMMES IN

BHEL MAKING IT - A Healthy, Wealthy and Wise
Corporate.

www.arseam.com Dr. N.P. Maheshwari ** Parul Garg **

Reader, Dept. of Commerce, Govt Reader, Dept. of Commerce, Govt P.G.
P.G. College, Rishikesh. ** Research College, Rishikesh. ** Research Scholar,
Scholar, Dept. of Commerce, Govt. Dept. of Commerce, Govt. P.G. College,
P.G. College, Rishikesh Rishikesh
Abstract

Only a few years ago, training was considered to be major peacetime function of the defence services for inculcating
discipline in the fighting forces. But recently, the term „ training‟ has acquired a wider connotation . Both the
government and the private business have now embraced enthusiastically, the training idea, an essential aid to
efficient operation of the services as well as to attainment of the organizational goals. More specially, training has
now clearly emerged as an increasingly influential part of the management process, helping persons to acquire and
apply knowledge, skill, abilities and attitudes needed by organization to achieve its objectives.

Key words: BHEL, MAKING, Training and development.

Introduction
The business of any organization is conducted through its people. And what the people do depend directly on what
the people know. In other words, the knowledge base in an organization guides its business and productivity. For
this reason, all organization are constantly training and grooming their employees to achieve the maximum results
from them, thereby spending a lot of precious resources on the process. A major part of the total costs is often spent
on the enhancement of employees‟ knowledge, skills and attitudes. Surveys have shown that organizations, which
spent more than the average amount of money on employee training and development achieve higher levels of
commitment, customer service and employees‟ alignment with company vision and values than those who don‟t.

BHEL - AN OVERVIEW
The first plant of what is now known as BHEL, was established more than 50 years ago at Bhopal (in 1956)
and was the genesis of the heavy electricals equipment industry in India. BHEL is today, the largest engineering and
manufacturing enterprise of its kind in India, with a well-recognized track record of performance, earning
continuously since 1971-72. It achieved a sales turnover of Rs 10336 crore with a net profit of Rs 953 crore in 2004-
2005. The company today enjoys national and international presence featuring in the “fortune International 500” and
is ranked among the top ten companies in the world for manufacturing power generation equipments. The
company‟s inherent potential coupled with its strong performance over the years, has resulted in its being chosen as
one of the „NAVRATNA‟ PSEs.

HUMAN RESOURCE DEVELOPMENT IN BHEL

The most prized asset of BHEL are its 43302 employees, out of which 41359 (95%) employees were
exposed to different training and development programmes in HRDI at Noida and HRDCs at units during the year
2004-05. The Human Resource Development Institute (HRDI) and other HRD centers of the company help in not
only keeping their skills updated and finely honed but also add new skills when required. The continues training,

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 International Journal of Human Resource & Industrial Research, Vol.4, Issue 4, Jun-2017, pp 41-46
ISSN: 2349 –3593 (Online), ISSN: 2349 –4816 (Print)

retaining, managerial development, a positive work culture and participative style of management have led to the
development of a committed and motivated work force, enhanced productivity and quality levels in the
organization.The following figures compiled in exibit-1 are evident of rapid growth of human resouce development
in BHEL through its HRD Centres at units and HRDI at NOIDA.

Exhibit-1
HUMAN RESOURCE DEVELOPMENT IN BHEL

SOURCE: Compiled by Annual Reports 2000-01 to 2004-05.

While HRDI has a major role to play, much of human resource development in BHEL is also done through
its several HRD centres located at the divisions/units. The HRDC and HRDI network together is as follows:

HRD Centre-BHEL Hardwar

The HRD centre was established in the year 1963. From technical training school to Training school and
also from training school to human resources development centre, the journey has kept in focus the advancement of
performing trade skills and managerial potential of vast human resource compising of executives, supervisors and
workers. Over a period of 40 long years the centre itself has bagged the Best Establishment award more then 20
times which is a record in itself for any training centre in the country. Developmental training started in the year
1975. Since then the HRD Centre has not looked back. In a span of more than 30 year the Centre has trained about
one lakh twenty thousand employees at various levels, the yearly average being 4000nos./year. The development
programmes covered both in-house and external programmes including corporate HRDI programme.

Human Resource Development Institute

The idea of setting up the Human Resource Development Institute was conceived in BHEL‟s first corporate
plan in 1974. The institute came in to existence in 1976 to fulfill one of the corporate objectives viz.; “to ensure
continuous development of competent managerial personnel and make the best use of both the human and material
resources.” All through the 30 years of its existence, the institute has played a significant role in ensuring continuous
development of managerial personnel. This is amply evident from nearly 660 programmes conducted so far
concerning about 14000 participants.

THRUST AREAS FOR TRAINING AND DEVELOPMENT IN BHEL

The following ongoing training programmes in the BHEL reflects the thrust areas of training and
development imparted through the various HRD centres and HRDI at Noida.
1. General Management programmes (GMP)
2. Advanced Management Programmes (AMP)
3. Young Managers Programmes (YMP)
4. Strategic Management Programmes (SMP)
5. Functional Management Programmes (FMP)
i) Project Management
ii) Marketing Strategies in the Globalized Economy
iii) Formulation of contracts for projects, contract management and
financing of projects
iv) Formulation, execution and interpretation of contractual terms and conditions
for business deals in new globalized economy
v) Negotiation Skills
vi) IT & E-commerce
6. Behavioural Programmes
7. Special Programmes:

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 N.P. Maheshwari, Parul Garg, TRAINING AND DEVELOPMENT PROGRAMMES IN BHEL MAKING IT - A Healthy, Wealthy
and Wise Corporate

In the context of above programmes the following Exhibit-2 showing programmes conducted by HRDI at
NOIDA during 2001-2002 is important:
Exhibit-2
Training Programmes conducted at HRDI by NOIDA during 2001-2002
Programmes No. of No. of Prog. Prog.
Progs. Participants Days Man-
Days
General Management 13 311 175 4267
Behavioral Science 5 82 25 392
Functional Management 20 436 66 1387
Extension 2 46 6 138
Others 3 89 6 178
Commercial 52 1139 168 3680
Grand Total 95 2103 446 10042
EVALUATION OF TRAINING AND DEVELOPMENT PROGS OF BHEL
To evaluate the impact of training and development programmes making BHEL a healthy, wealthy and
wise corporate, the study have been divided into two parts as follows;
A- Evaluation at individual level
B- Evaluation at corporate level
A- EVALUATION AT INDIVIDUAL LEVEL:
In order to gather information regarding training and development programmes in BHEL and to measure its
effectiveness; especially its relevance in making BHEL a healthy, wealthy and wise corporate, a detailed
questionnaire was addressed to 400 workers and middle level managers of BHEL, Hardwar but only 250 workers
and 69 executives responded in the year 2004. The possible responses to the questionnaires were structured and
graded as „not at all‟, „to some extent‟, „to great extent‟ and „not applicable‟ etc. The finding of the study are
summarized as under:-

i. Participation in Training and Development Programmes

The finding are summarized in Exhibit No.-3 given as follows:
EXHIBIT-3
EMPLOYEES TRAINED IN BHEL
Particulars Executives Non-Executives Total
1. Participants who have
attended Training 63 212 275
programme 91% 85%

2. Participants who have

not attended Training 6 38 42
programme 9% 15%

Total 69 250 319

From the above exhibit-3, it is evident that of the total 319 respondents, 69 (91%) Executives and 212
(85%) Non-Executives availed training and development facilities in BHEL.

ii. Number of Training programmes attended

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 International Journal of Human Resource & Industrial Research, Vol.4, Issue 4, Jun-2017, pp 41-46
ISSN: 2349 –3593 (Online), ISSN: 2349 –4816 (Print)

To ascertain the frequency of training programmes attended by the executive and non-executive employees
the respondents in our survey were requested to state the number of programmes attended by them. This enquiry was
expected to further clarify the extent of development facilities afforded by the Hardwar unit of BHEL to its
employees.
Study reveals that 90% of the respondents attended more than one training programme, of whom 52%
attended 2-3 programmes and 30% attended 4-5 programmes. It is very interesting to note that some respondents
have attended more than six training programme-3% attended eight programme and 1% attended 12 programmes.
This shows that BHEL gives considerable importance to develop its employees and considers that employees needed
to be trained frequently to have them well developed. In an interview with Senior Executives of HRDI, the
researcher was told that BHEL considered training as a must for its employees and for that it sees that training
facilities were offered from peons to Chairman.

iii-Achievement of the Training Objectives

To ascertain how far the training objectives were achieved by the employees, the respondents in our survey
were requested to state their views in respect of same.
Exhibit-4
Achievement of the Training Objectives
Views of the Respondents No. of Respondents % of Total
Beneficial 204 64%
Partly beneficial 96 30%
Not beneficial 19 6%
Total 319 100%
The exhibit-4 indicates that except 19 respondents who constitute 6% of our study group, all others i.e.
94% are of the view that they have achieved either wholly or partly the avowed objectives of training, 64 % of the
respondents have expressed the view that they have fully achieved the objectives of training and development
programmes.

iv. Effectiveness of Training and Development Programmes

In order to ascertain the effectiveness of training and development programmes in improving skills and
capabilities of employees, it was enquired as to in which areas the respondents had experienced improvements. The
results of our enquiry are shown in Exhibit-5.

Exhibit-5
Effectiveness of Training and Development Programmes
S.No. Area of Improvement Improvement (No. of respondents)
To great To some Not Total
extent extent at all
a) Job Performance 67 163 20 250
(27%) (65%) (8%) (100%)
b) Human Relations skills 120 105 25 250
(48%) (42%) (10%) (100%)
c) Conceptual Skills 95 140 15 250
(38%) (56%) (6%) (100%)
d) Supervisory Methods 120 115 15 250
(48%) (46%) (6%) (100%)
e) Understanding departmental 95 107 48 250
and organizational (38%) (43%) (19%) (100%)
Circumstances
f) Decision Making skills 95 112 33 250

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 N.P. Maheshwari, Parul Garg, TRAINING AND DEVELOPMENT PROGRAMMES IN BHEL MAKING IT - A Healthy, Wealthy
and Wise Corporate

(38%) (49%) (39%) (100%)

g) Job Satisfaction 75 127 48 250
(30%) (51%) (19%) (100%)

Total (38%) (50%) (12%) (100%)

Study reveals that on an average 88% of the respondents have found the programme effective in improving
their skills and capabilities as listed from a to g and 12% not at all.
B-EVALUATION AT CORPORATE LEVEL
i. Training mean financial Performance: Human Capital investments rarely appear on corporate balance sheets,
except as an expenditure and not an investments. Consequently it‟s not surprising that there is little information on
the effectiveness of such investments, even within companies. The absence of such information makes it difficult for
corporate decision-makers to make well-informed choices about how much money to spend on training or what
types of training to offer.
The American Society for Training and development now has preliminary evidence that companies that
invest more heavily in training are more successful and profitable. Such companies are also more highly valued on
well street, and their market value is growing .
The following figures compiled in Exhibit-6 represents the growing relationship between training and
financial performance of BHEL.
Exhibit-6
Financial Performance Highlights: Year 2004-2005

ii. Performance and Market Price Data

One powerful source to measure companies‟ performance is the stock market. A stock price is assumed to
reflect investors‟ beliefs about long-term firm performance. Thus fluctuations in stock price, or other measures
derived from equity indicators, can be taken as index of the firm‟s future performance potential. If this assumption is
accepted, then some strategic initiative i.e. the training and development, should impact the firm‟s stock market
performance. If the move is anticipated to improve performance in the long term. The exhibit reveals that during
2004-05, BHEL recorded Net Worth Rs. 246.2 per share up by 14.19%, Earning Per Share Rs. 38.95, up by about
44.86% and dividend Rs. 8.00 per share up 33.3, compared to Rs. 215.6, Rs 26.89 and Rs 6.00 respectively of the
last fiscal 2003-2004. Apart from this, Share Market Price high and low quotations of Shares traded on the stock
Exchange Mumbai during the year 2004-05 indicates an upward trend in equity prices of BHEL shown as under in
Exhibit-7:
Exhibit-7
Showing Market Share prices of BHEL in BSE, MUMBAI
S.No Month & Year Bombay Stock Exchange Prices
High Low
1. April 2004 686.00 580.25
2. March 2005 883.00 741.60
SOURCE: www.bseindia.com

iii. Other important indicators showing the employees effectiveness in BHEL due to T& D Programmes
 Return on capital employed have an increasing trend.
 As a result of training & development to employees inventory level in amount and in number of days to
turnover have come down to 162 days in 2001-02 from 189 inventory days during the year 2000-2001.
 Machine tool utilization percentage have been increased.
 Savings due to production improvement plan (PIP) per executive due to suggestions per employee
is improving.

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 International Journal of Human Resource & Industrial Research, Vol.4, Issue 4, Jun-2017, pp 41-46
ISSN: 2349 –3593 (Online), ISSN: 2349 –4816 (Print)

 Number of mandays due to LWP and commuted have a decreasing trend thus, enhanced the
workers efficiency.
 Number of registered grievances as defined in grievance redressal scheme at unit level is almost NIL since
last many years.
 There is an increasing trend in training mandays per employee and amount spent on training and
development per employee. The training mandays per employee rose to 4.12 days during the year 2004-05 as
compared to 2.2 days in the year 2003-04.
 Due to improvement employees performance material cost reduced upto 254, 275 and 342 Lakhs
during 1999-2000, 2000-2001 and 2001-02 respectively.

Iv-Awards and Recognitions:

A large number of employees of BHEL have been honoured with the coveted Prime Minister‟s
SHRAMVIR, SHRAM SHRI, SHRAM DEVI and VISHWA KARMA National Awards. For the year 2004-05, 14
workmen of BHEL have got 8 PM‟s Shram Awards (highest in any year), including the only Shram Bhushan Award
declared this year.
BHEL has also won a number of national and international awards which include Best Material Handling
Award by National Handling Council, Jamshedpur, Best Organization Award by Indra Gandhi Memorial National
Award Committee, INSAAN Award for Excellence in Suggestion Scheme Association and Best Organization
Award for Excellence in Value Engineering by Society of Indian Value Management. BHEL has the rare distinction
of getting Sword of Honor Award from British safety Council, London.
BHEL also bagged the topmost position amongst PSUs in the Best Employers survey, reflecting the high
level of satisfaction of its employees. The survey covering, 204 public and private sector companies, was conducted
by Business Today and Hewitt Associates.

CONCLUSION
Now, there is preliminary evidence that BHEL through its training and development is reaping financial
rewards. Though much additional work has to be done in this area, there is growing evidence that companies must
treat training & development as an investment and measure them accordingly.
Of course the very concept of training and development is a new thinking as far as Indian industries are
concerned. Today only a few organizations are realizing that training and development are most essential for the
profitable of the organization. This changing trend is encouraging to give effectiveness by performance and through
self-evaluation. But the encouragement is not coming from all levels of organizations, only big units or certain
organizations or industries as a whole have started to think that training is a „must‟ environment to achieve more
productivity and profitability.

References:
Annual Report, BHEL House, Sri Fort, New Delhi, Year 2000-2001 to 2004-2005.
Pratibimb, Quarterly letter April 2005
Annual Review of HRDI, BHEL, NOIDA 2002.
Activities Report of HRDI, BHEL, NOIDA 2004-2005.
HRDI, Calender of Activities, BHEL-HRDI, NOIDA
Training Reports, Training & Development Section, BHEL, Hardwar.
BHEL, Human Resources, BHEL New Delhi
Position Report, BHEL, TQM/CFFP & HEEP, Hardwar 2002
Peoples‟ management II, Financial Express Magazine Dec 18th ,2002.
Udai Pareek & T.V. Rao, „Designing and Managing Human Resource System‟, Oxford and
India Book House, New Delhi, 1988.
www.bseindia.com
website: http://www.bhel.com

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