Training Needs Assessment and Recommendations for Capacity Building in State Level Public Enterprises
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November 2012
Training Needs Assessment and
Recommendations for Capacity Building
in State Level Public Enterprises
Department of Public Enterprises
Ministry of Heavy Industry & Public Enterprises
Design & Print by: Purple communications Government of India
CONTENTS
Preface
PART – I PART – II
Inaugural Session Technical Session on
Training Needs Assessment &
Recommendations
Inaugural Address
Smt. Sindhushree Khullar Chapter-1:
Secretary, Planning Commission vi Recommendations for the
Manufacturing Sector by IPE,
Keynote Address Hyderabad 1-3
Shri O.P Rawat
Secretary, Department of Public
Enterprises vii Chapter-2:
Recommendations for the Trading
Special Address Sector by IIPA, New Delhi 5-7
Dr U.D.Choubey
Director-General, SCOPE viii Chapter-3:
Recommendations for the
Welcome Address Financial Sector by 9-13
Dr. Sharat Kumar ISB, Mohali
Advisor, Department of Public ix
Enterprises Chapter-4
Recommendations for the 15-19
Vote of Thanks Electrical Sector by IIT,
Shri A.K Sinha Kharagpur
Joint Secretary, Department of xi
Public Enterprises Chapter-5:
Recommendations for the 21-23
Transportation Sector by IIT, Delhi
iPREFACE
There were 849 operating State Level Public
Enterprises (SLPEs) in the country as on 31.3.2008,
of which most were in the area of providing infra-
structure services, including power supply, road
transportation and irrigation. Some SLPEs are pro-
motional in nature providing cheap credit to target
groups and extending marketing support to small
and village enterprises. SLPEs have thus played an
important role in the economic growth of States and
Union Territories.
The total financial investment in the 579
SLPEs, who furnished information for the National
Survey on SLPEs (2007-2008), stood at Rs.2,98,844
crores; this comprised Rs.1,15,588 crores as paid-up
capital and Rs.1,83,256 crores as long term loan. The
annual turnover of these 579 SLPEs, as on 31.3.2008,
stood at Rs.2, 39,453crores which was lower than the
total investment.
The SLPE in public utilities, such as, power
supply and road transporation have often to operate
under controlled/administered prices (below the
remunerative prices), which reduce the value of
turnover. With a view to compensate these public
utilities, the State and UTs have been providing
subsidies. The total subsidy received by the SLPEs
during 2007-08 amounted to Rs.14, 319 crores which
works out to 6% of the turnover.
As many as 190 out of the 579 SLPEs for
whom data was available were making losses during
the financial year 2007-08. Given the financial
condition of the State Governments, they can ill-affordto have such large numbers of loss making enterprises. conducted under the guidance of the faculty members
There is urgency, therefore, for measures that can lead of Centres of Excellence. This Report puts together
to improved performance by these enterprises. One the recommendations emerging from the delibrations
such measure is that of capacity buliding of executives of this Seminar.
and employees in SLPEs.
The Report will, furthermore, form the basis of
Some SLPEs do have induction programmes the different training programmes to be implemented
for their new recruits and re-training programmes by the Department of Public Enterprises (Government
for other employees. The Standing Committee of of India) in the course of the 12th Five Year Plan.
Secretaries in-charge of Bureau of Public Enterprises While some of the training programmes will focus on
in States and UTs (constituted in the Department building the individual skills, the others will focus on
of Public Enterprises, Government of India), in its institution building. In the latter category would fall
first meeting held in New Delhi in December 2008, discourses on corporate governance and up-gradation
however, recommended that the Government of of technolgy etc.
India should supplement the efforts of States and UTs
in capacity building of their SLPEs. A proposal on Skill development/ retraining are a stimulant
those lines was, therefore, submitted to the Planning to technical progress. As ‘product life cycles’
Commission as part of the 12th Five Year Plan exercise. are increasingly getting reduced on account of
The Planning Commission subsequently made a competition, there is all the more a need to draw
token provision of Rs.1 crore for the same, in the a distinction between the physical life of plants
annual Budget (2012-13) of Department of Public & machines and their operative life on account of
Enterprises, Government of India. The Department obsolescence. Such training programmes may also
accordingly decided to organise a Seminar on Training cover ‘business management’ as higher quality
Needs Assessment in SLPEs. managers are more alert to technical improvements.
The present Report is the result of this In the course of the 12 th Five Year Plan,
national Seminar, which was held in New Delhi on furthermore, all the State/UT’s governements
16th November 2012. Smt. Sindhushree Khullar, are observed to be stepping up public sector
Secretary, Planning Commission inagurated the investment in infrastructure sectors like electricity
Seminar. In her address, she stressed upon the and transportation. Any fresh investment would,
need to restore the State Level Public Enterprises however, depend on the availability of skilled/
to good health. qualified people to manage the new plants and
machinery. The importance of skill development and
Earlier addressing the Chief Executive training can, therefore, be not over emphasized.
Conference of Central Public Sector Enterprises in
March, 2007 the Hon’ble Prime Minister of India, Dr.
Manmohan Singh made the following observations in
relation to these enterprises:
“Apart from central Public Enterprises there are
hundreds of state level Public Enterprises with vast
sums of public money invested in them. They must also
change and adapt to the needs of times.”
The Seminar on Training Needs Assessment
in SLPEs for the different sectors of manufacturing, (O.P. Rawat)
trade, finance, electricity and transportation was Secretary
Department of Public EnterprisesPart-I Inaugural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session Inagural Session
Summary Record of the Inaugural Address
Smt. Sindhushree Khullar
Secretary, Planning Commission
Giving her Inaugural Address at the “Seminar on and carrying forward the Plans Scheme on Skill
Training Need Assessment for State Level Public Development/Training of Executives and Employees
Enterprises” held at SCOPE Convention Hall, Lodi of SLPEs. She observed that according to the latest
Road, New Delhi on 16th November, 2012, Smt. National Survey on State Level Public Enterprises
Sindhushree Khullar Secretary, Planning Commission (2007-08), the total number of employees in these
stated that by way of the formulation of the Twelfth enterprises exceeded 18 lakh people. The task of
Plan, the Planning Commission has produced various “skilling” or “training” of this large number of people
Reports and Studies. The country would now be was a huge task, more so, because there was a shortage
interested in the outcomes. of trainers/teachers. Skilling, moreover, has to be
different for the ‘unskilled’ and the ‘skilled.’ The
In regard to Public Sector Enterprises in the
latter category, requires re-training.
States, she observed that they should be seen as part
of the overall govrnance process. She, stated that Whatever be the nature of training she
although these enterprises have been part of the observed a cadre of trainers needs to be built to meet
State Governments and are often the human face of this huge challenge. She, therefore, suggested that the
the Government as they provide “public utilities”, a Department may consider building an Apex Cadre of
divisible line has come to exist between the two. On Trainers who may learn from ‘the best in the field’ or
account of their poor performance, perhaps, there is from ‘the Master Trainers’. Accordingly, ‘Training
reduced interest in these enterprises, which has led Hubs’ may be identified and Master Trainers who
to their neglect. These outliers need to be restored to may federate themselves to form the core Group.
good health and made to contribute to plan resources Concluding her address, she stated that the broad
rather than be a drain on the State exchequer. objective of this new initiative should be to contribute
towards building the cumulative resources of leaders
In this context, she expressed her happiness
in ‘skilling’. She finally declared the Seminar open
over the DPE’s initiative in organising this Seminar
and wished the deliberations all succeess.
viSummary Record of the Keynote Address
Shri O.P Rawat
Secretary, Department of Public Enterprises,
Government of India
Giving his Keynote Address, Shri O.P.Rawat, During the 12th Plan exercise, furthermore, the
Secretary, Department of Public Enterprises expressed Planning Commission was kind enough to consider the
his gratitude to Secretary, Planning Commission for proposal for a new Plan Scheme of the Department,
having accepted the invitation for the Inauguration. namely, “Skill Development/Training of Executives
He mentioned that it was at the behest of the Planning & Employees of State Level Public Enterprises”. A
Commission that the Department of Public Enterprise provision of Rs.1 crore was also subsequently made
initiated the exercise to bring out an Annual Report in the Union Budget of 2012-13, the first year of
on the performance of State Level Public Enterprises. the 12th Plan. It is against this background that this
Two such Annual Reports, namely, National Surveys Seminar has been organized. He stated that sector-
on the performance of State Level Public Enterprises wise deliberations during the Technical Sessions
(2006-07) and (2007-08) have been brought out by will take place under the guidance of the faculty
the Department. The work on the next Survey, which members of Centres of Excellence. He asked the
would cover two years of 2008-09 and 2009-10, is participants from States/UTs to actively participate
going on. in these deliberations, sharing their insights vis-à-vis
the training needs in the SLPEs in their respective
He further remarked that Public Sector
sectors. He stated that based on the recommendations
Enterprises have been an integral part of the planning
emerging from these deliberations the training
exercise in India. With a view to invigorate the Central
programmes in SLPEs will be organised.
Public Sector Enterprises (CPSEs), the Planning
Commission had set up recently a Panel of Experts
on Reforms in CPSEs in August, 2010. The Panel has
since submitted its recommendations, which are under
considerations of the Government.
viiSummary Record of Special Address
Dr U.D.Choubey
Director-General, SCOPE
In his Special Address to the august gathering at the be willing to spare a maximum of three training slots for
Seminar on Training Needs Assessment for State the Board Members of State Level Public Enterprises.
Level Public Enterprises held in Scope Complex
He complemented Secretary, Planning
New Delhi, Dr. U.D.Choubey Director-General,
Commission for sparing her valuable time for the
SCOPE dwelt upon the training needs at the Board
cause of Public Sector Enterprises. He also praised
level in public sector enterprises. He observed that the
her for her support to the initiative of Department
Board of Directors in these enterprises constitute of
of Public Enterprises for the training programme of
Functional Directors, Government Nominee Directors
executives (SLPEs) and employees in State Level
and Independent Directors. He observed that although
PublicEnterprises. In this regard, Dr. Choubey
each of these categories of Directors are experienced
reaffirmed that SCOPE shall extend all cooperation
people and distinguished personalities in their
and assistance to DPE to bring cultural change SLPEs
respective fields, they have everything to gain through
and assimilate with professionalization of CPSEs.
undergoing a short induction training programme
SCOPE is prepared to consider limited number of
vis-à-vis their respective roles and responsibilities in
nomination from SLPEs for its various programmes
public sector enterprises.
provided such interests come from them.
In this regard, he informed that SCOPE has
Dr. Choubey complimented Secretary, DPE and
been conducting such training/induction programmes
other officials of DPE for organizing such important
for the Central Public Sector Enterprises, and he would
workshops and seminars for the growth of SLPEs.
viiiWelcome Address
Dr Sharat Kumar, Economic Adviser,
Department of Public Enterprises
Hon’ble Secretary, Planning Commission, Hon’ble by various Promotional Corporations as Section 25
Secretary, Department of Public Enterprises, Govt. companies for the development of livestock, poultry,
of India, Principal Secretaries/Secretaries from fisheries, horticulture, handlooms and handicrafts, and
States, Faculty Members from Centres of Excellence, given the socio-economic conditions of a developing
Distinguished Participants, Ladies and Gentlemen! economy like India they will continue to be important
for some time to come. The last group, in this
It is indeed my privilege to welcome Secretary,
classification, belongs to ‘manufacturing’ enterprises
Planning Commission. We are extremely grateful to
in the state sector – engaged in the production of
you Ma’am for having accepted our request to be the
cement, textiles, sugar, pharmaceuticals, electronics,
Chief Guest to-day and inaugurate the Seminar.
scooters and watches. Remoteness from the main
The role of the Planning Commission in the centre of supply, scarcity of these products and lack
establishment of Public Sector Enterprises in the of entrepreneurship (when all the other conditions
country has been pre-eminent. The role of Central are present) have prompted different states to set up
Public Sector Enterprises in industrialisation of the these industries.
country is well acknowledged. The State Level Public
Since the State Level Public Enterprises are a
Enterprises have also played an important role in the
vehicle of investment, they are harbingers of growth.
country’s development.
At the same time, there is need for “due diligence” or
Forest Corporations, Mineral Corporations ex-ante appraisal before these are launched. This may
and Tourism Corporations are resource based and state require greater integration with the plan process, and
specific, and these will continue to be relevant in the adoption of PIB, EFC and SFC like systems. I am,
future. Then, we have electricity, road transportation, however, not sure if this is being done in the states.
inland navigation and warehousing corporations in As for the banks, it is the success rate of the projects
the category of “public utilities”, and the states will sanctioned/approved that would be the measure of the
continue to be important players. This is followed success of the plan exercise.
ixCorporate governance, in particular, has been I also welcome Shri Arun Sinha, Joint
a neglected area in the case of State Level Public Sectary, DPE to this event. He has been a pillar
Enterprises. Secretary, DPE has been relentlessly of strength to the Department and to the cause
laying emphasis on this aspect and has directed us to of Public Sector Enterprises.
organize conferences in the states to raise awareness
I welcome all the faculty memebers from the
towards this. I welcome Secretary, DPE to the
Centres of Excellence, namely, IIT, Kharagpur, IIT,
Inaugural Session.
Delhi, ISB, Mohali, IIPA, New Delhi and Institute of
I welcome Director-General, SCOPE for Public Enterprises, Hyderabad.
accepting our invitation and address this august
I also extend my warm welcome to all the
gathering. SCOPE has been spearheading the cause
participants from States and U.Ts, whose insights and
of Public Sector in India. They have, in particular,
suggestions will form the basis of the recommendations
advocated the cause of Central Public Sector
that would emerge from the brainstorming technical
Enterprises. It is high time that they bring into their
sessions soon after the inauguration.
fold the State Level Public Enterprises.
I once again extend a warm welcome to you all.
xVote of Thanks
Shri A.K Sinha, Joint Secretary,
Department of Public Enterprises
It is my privilege to propose the Vote of Thanks. a cadre of trainers as Master Trainers who can be
Repected Secretary, Planning Commission, Respected utilized for imparting training to exeecutives and
Secretary, Department of Public Enterprises, Govt. of employees in SLPEs. She also emphasized the need of
India, Director General, SCOPE, Dr. Sharat Kumar, creating Training Hubs. We have taken note of these
Economic Adviser, DPE, Faculty Members from suggestions, and will work on them. I thank her for
Centres of Excellence, Distinguished Paticipants from gracing the occasion and for her inspiring address.
States and Union Territories and State Level Public
Secretary, DPE has been the guiding force behind this
Enterprises, Ladies & Gentlemen!
Seminar. He is taking keen interest in rolling out new
We are all aware of the importance of Human training schemes for Capacity Building. The numbers
Resource Management. The Standing Committee of of training programmes organised during the last five
Secretaries of State level Public Enterprises (SLPEs) months are a testimony of this keenness. I thank him
in its meeting held in December 2008 pointed out to for his guidance and leadership.
the need for capacity building in SLPEs. Based on
DG, SCOPE is always pushing for improvement
these feedbacks, DPE has launched a new scheme on
in Public Sector Enterprises. He has been very
“Skill Development/Capacity Building of Exeecutives
generous today, as he has offered to give some slots
and Employees of SLPEs” from this first year of the
to executives of SLPEs in Top Management Training
Twelfth Five Year Plan. This scheme will take up the
Programme being conducted by SCOPE. I am sure this
issue of capacity building, particularly, at the Board
will help SLPEs in their capacity building. I thank DG
level and Senior Management levels in SLPEs.
SCOPE for his presenc, and for all the logistic support
This seminar, in turn, is being organised for in organizing this Seminar.
training needs assessment in SLPEs. The presence of
Dr. Sharat Kumar, Economic Adviser,
Madam Secretary, Planning Commission has raised
Department of Public Enterprises has been piloting
the enthusiasm of all the participants. In her inagural
the implementation of this new Plan Scheme. He
address, she mentioned about the need for building
xiis also responsible for the preparation of the Public form the basis of the Training Needs in the SLPEs. I
Enterprises Survey, which is placed in the Parliament. thank them for their presence and for their support.
With the available resources at his disposal, he is
I take this opportunity to thank all my
taking the Scheme forward. I thank him for all his
colleagues from DPE for their untiring efforts in
efforts and for his contributions towards this Seminar.
organising this event. I also extend my special thanks
The Faculty Members from the Centre of to the staff of SCOPE for their co-operation and for
Excellence are the main pillars of this Seminar. They their assistance in organising this Seminar.
will help us in designing the Training Programmes.
I once again express my deep and sincere
I thank them all for their support and for their
thanks to Smt. Sindhushree Khullar, Secretary,
participation.
Planning Commission for inaugrating this Seminar.
The participants from State Governemtns and
Thank you very much!
SLPEs are the most important stakeholders of this Plan
Scheme and of this Seminar. Their paticipation will
xiiPart-II
Technical Session on
Training Needs Assessment &
Recommendations
Technical Session on Training Needs
Assessment & Recommendations
Technical Session on Training Needs
Assessment & Recommendations
Technical Session on Training Needs
Assessment & Recommendations
Technical Session on Training Needs
Assessment & Recommendations
xiiixiv
Institute of Public Enterprise
Recommendations for the Manufacturing Sector
Chapter-1
Co-ordinators of the Technical Session: • Ways to bridge the gaps to become a leader in
the industry
Prof. S. Satish Kumar
• Training as a catalyst in the metamorphosis
Shri. J.B.Venkataratnam
of SLPEs
Initiating the discussions, Prof. Satish Kumar stated • Specific areas requiring intervention of
the objective of the meeting which was mainly to training
make an assessment of the Training Needs in SLPEs.
He also emphasized on competency mapping
He emphasized the need for competitiveness of
of employees in SLPEs at various levels (i.e., Top,
manufacturing SLPEs and for their sustained growth
Middle, Supervisory Staff and Technicians).
for increasing their share in GDP. He asked the
Importance of identifying gaps at each level, and
representatives from SLPEs to focus on the followings
ways of bridging the gaps has to be the first step. He
during their participation in the discussion:
further argued that effectiveness of the programmes
• Present status of the SLPE to which they conducted needed to be monitored, and corrective
belonged actions taken as and when necessary. He stated that
criteria for identifying Training Needs would have
• Strategic planning / Future plans for growth
to be different for: (a) Organizational Needs and (b)
and sustenance
Individual Needs.
• Challenges faced in the operations and reasons
for shortfalls
1Shri J.B.Venkataratnam talked about the • Training progamme in Strategic Marketing
current status of ‘Manufacturing Sector’ in India and
• Training progamme in Strategic HRM
its potential. He briefly dwelt upon the reasons of
stagnation in the share of manufacturing in India’s
GDP at 16%, for the last two decades. In his opinion,
Middle Management:
the main reason was low global competitiveness of
India’s manufacturing sector. Technology innovation • Executive Development Programmes (two
and Resource Efficiency were identified by him as weeks duration)
the main drivers for augmenting competitiveness and
• Modern trends in Quality management
for achieving Manufacturing Excellence.
• Training progamme in Supply Chain
In regard to training programmes, it was
Management
argued that it can be designed for various levels in
different areas like Strategic management /Futuristic • Good Manufacturing Practices
planning, building managerial capabilities and
• Training progamme in Functional Integration
Corporate Governance etc.
• Tr a i n i n g p r o g a m m e i n M a n a g e r i a l
Consequent to the deliberations and
Effectiveness
suggestions made by the participants from SLPEs,
the following areas were identified for necessary/ • Competency Mapping and Training Needs
training intervention: Assessment
Senior Management: • Functional management: Operations
management.
• General Management Development
programmes • Interface between manufacturing & other
functions
• Awareness about World Class Manufacturing
practices • Training progamme on HRM / Motivation and
Soft skills
• Training progamme in Strategic Planning
• Training progamme in Finance for non finance
• Developing strategies for achieving
executives
Manufacturing Excellence
• Project Management
Operational level:
• Leadership & other enablers for achieving
Business Excellence. • Training progamme on productivity –
Measurement & Improvement
• Turnaround Strategies for sick and loss making
SLPEs • Training progamme on Quality Control practices
2• Tr a i n i n g p r o g a m m e o n S h o p F l o o r 4) Group Discussions and Presentations
Management by participants that will help in the peer
learning process as well as in improving
• Production Planning & Inventory Control
participants’ engagement.
• Training progamme for Problem Solving
• Training in Motivation and Soft skills
Programme Administration:
• Nodal Agency/ Regional Hub, at each
Pedagogy: State Headquarter, may be contemplated for
organising training programmes for SLPEs
Management training in Public Enterprises is
in the respective states. DPE (Government
an attempt to improve the managerial effectiveness
of India) will act as a catalyst to assess the
through planned and organized learning process.
training needs as well as in the conduct of
Management training programmes are to be
the programmes.
basically designed in terms of present and future
needs of an enterprise, and have to be related to • In-house/company training programmes may be
individual manager’s abilities and potentialities. The designed to reduce travel charges. Mechanics
business environment, critical problems faced by the of sharing the expenses by DPE and individual
organizations and problem solving skills have to be SLPEs may be decided as felt appropriate, e.g.,
kept in mind in the programme design. training fees and stay can be borne by DPE-
Centre of Excellence and travel charges can be
Based on these inputs, programmes on the above-
borne by the participating SLPEs.
mentioned topics could be designed as a 2-day or
a 3-day module. The design will depend upon the Conclusion:
participating SLPEs’ specific needs.
Importance of assessing competency levels
The above list of topics is only indicative and new topics and gap analysis in SLPEs was clearly brought out
can be introduced if needed. All programmes will have in the deliberations. This led to a better understanding
to be customized to suit the needs of the participants. of the ‘Training Needs’ of SLPEs. Areas suggested
for training intervention will, however, have to be
The pedagogy will have to be a judicious mix of the
closely monitored for contemporary relevance and will
followings:
need to be updated from time to time. Evaluating the
1) Classroom presentations to explain modern effectiveness of these training programmes vis-à-vis
theoretical concepts improvement in performance in the enterprise will,
furthermore, provide the justification of such training
2) Exercises that will improve problem solving skills
programmes and for their inclusion in the HR Calendar
3) Case Studies that will act as practical of the different SLPEs.
illustrations of the concepts expounded.
34
Recommendations for the Trading Sector
Chapter-2
Co-ordinators of the Technical Session: • Lack of sense of belongingness and commitment
towards the organization, the reasons for this
Prof. Pranab Banerji need to be understood (nature of recruitment–
Dr. C. Sheela Reddy unfilled vacancies, non–rewarding salary
structure, voluntary retirement by the people in
The discussions during the Technical Session was the age group of 40–45,employees ignorant of
guided by Prof. Pranab Banerji and Dr. C. Sheela what is going on in the organization due to lack
Reddy, Faculty, IIPA, New Delhi. The following of coordination, people appointed as CEOs do
generic constraints viz-a-viz-training needs were not carry forward the right perspective as they
identified based on the issues highlighted by the themselves lack the experience of handling
participants: an organization and their capabilities are not
properly assessed before entrusting a task to
• Training has been there, but it is not periodic.
them. Often CEOs feel that responsibility
• There is urgent need to identify gaps in training is thrust on them and do not consider it as a
and impart specific skill training wherever worthy assignment).
necessary. Organizations need to further self
• Lack of proper manpower planning. It was
introspect whether training is in consonance
surprising to note that there was no recruitment
with the objectives of organization and
in A.P. Trade Promotion Corporation Ltd since
policies, or is it of a routine nature and how
1989 onwards and obtaining government’s
to make it action oriented?
permission is necessary even to recruit on
contract basis.
5• Government does not give a perspective plan • Compulsory periodical training at different
for organization to execute and no one ably levels suited to requirements
assists in the execution of work.
• Need for an organization to ensure
• No philosophy for organization, no continuity implementation of training requirements
in policy and long term planning. with SLPEs
• Absence of proper mechanism to make people • Identification of premier institutions to impart
aware of their own organization. Need for training
periodic information about organization-what
• Independent body to draw a calendar after
organization is expecting from employees to
doing a preliminary work of assessing
achieve and fixing/sharing of long–term and
training needs
short–term goals.
• Upgradation of skills of trainers to keep pace
Some Genuine Concerns
with the changing needs and requirements
• Need for attitudinal change which is basic
• Training at entry point induction training
prerequisite impacting the working of
organization and making a remarkable • Developing in-house expertise in
difference on the overall performance of the specific areas.
organization
Types of Training
• Some unanimity on the duration of the training
General Training could be on:
programme at different levels– who decides,
how to decide, how to plan it out, should it be • Management Training
a part of the job or an exclusive one?
• Decision Making
• Availability of staff for training programme–
• I n t e r p e r s o n a l R e l a t i o n s a n d
can the organization spare as the staff is not
communication skills
adequate.
• Problem Solving
• How the enterprises can link with scientific
departments? • Corporate Governance
• Financial Management
Training Needs • M o t i v a t i o n & O rg a n i z a t i o n a l
Commitment
• Exclusive brainstorming sessions for CEOs
on training needs
• Clarity on whom to train Specific Training could be on:
6• Focus on technicalities of job–how to Action Plan
improve technical knowledge
To begin with, a five day module is desirable for senior
• Export - Import procedures functionaries of SLPEs. This may cover the following:
• Dissemination of information • The Indian Economy in a Global Perspective.
• Exposure to Case Studies of successful • The role and performance of Public Enterprises-
enterprises in India (Centre and States), and in other
abroad.
• SLPE’s can themselves form the core
group-learn from each other in specific • Public Sector Reforms at the Central, State
areas – mutual learning and exchange of and in other countries.
information
• Modern Management Approaches & Practices
• Training on trade promotion activities and
• Experience sharing & Brainstorming
procedures such as:
• Inputs on Values & Ethics.
• Supply- chain management
• Transportation
Suggestions for organizational structure
• Quality Maintenance
• Enterprises should not be CEO driven
• Storage
organizations. The person appointed as CEO
• Contract Management needs to think on the ways and means to lead
the organization effectively and efficiently.
• General Finance Management
• Recruitment should be done periodically,
• Cashflow Management
as appointments on contract basis do not
• Working Capital management instill a sense of commitment towards the
organization.
• Project Finance Management
• Selection of functional directors should not
• Investment Appraisal
be arbitrary.
78
Indian School of Business
Recommendations for the Financial Sector
Chapter-3
Co-ordinators of the Technical Session: • Managing talent and developing measures to
meet individual career aspirations
Prof. Rajesh Chakrabarti
• Developing effective communication and
Ms. Sudarsna Kundu
presentation skills, executive presence
The following broad learning requirements were • Building a culture of high performance
identified by ISB Mohali based on the discussions
Strategic Thinking and Decision Making
withsample representatives of SLPEs who attended
the Seminar on 16.11.2012. SLPEs are facing severe competition from the private
sector. In some cases, large CPSEs have also entered
Leadership and People Management skills
into territories that were so far the sole domain of the
Participants felt that strong leadership was required to SLPEs. Besides, SLPEs have often been set up with
effect turnaround strategies in the SLPEs and to build a wider social objective which is at odds with the
a culture of high performance. Some of the learning profitability goals of a corporate. If the SLPEs have
requirements identified were as follows: to turnaround financially, senior management have to
sharpen their business acumen, think out of the box and
• Developing personal leadership and team
improve their strategic thinking capability. According
management skills
to the participants, a learning programme on strategic
• Managing intermediaries & other thinking will have the following key benefits:
stakeholders
• Strategy formulation for changed business
scenario: Senior leadership of SLPEs need
9to provide strategic direction so that these • Managing stakeholders: Senior managers
enterprises reinvent their business models and need to work with a diverse set of
find additional streams of revenue and are able to stakeholders – from state administrative
withstand the pressures of the global marketplace. departments, ministers, lending agencies
such as the World Bank, JICA, private and
• Develop a long term perspective: If the
public sector banks , civil society activists
organizations need to accelerate their pace
and NGOs, and private sector companies
of growth and foresee and respond to future
who are either partners in joint ventures/
market uncertainties, senior leadership will
PPPs or are implementers for the SLPEs.
have to develop a long term perspective which
Managing this multiplicity of stakeholders
allows them to develop the vision and strategy
requires a nuanced understanding of the
for the future. This may be particularly
requirements of each party and negotiating
challenging for people who have come from
and communicating accordingly.
technical functions who need to go beyond
focusing on the operational details and harness • Negotiating with Contractors and other
their ability to see the bigger picture. This is Vendors: Senior managers, particularly those
particularly true for many of the SLPEs in the with direct responsibilities of contracting and
infrastructure space. procurement have to negotiate with private
sector companies to ensure the best financial
• Risk aversion and Ownership: Given the
value and implementation arrangements are
transient nature of the tenure of the Board of
secured for the organization. This also requires
Directors of many SLPEs, there is a perception
strong negotiation skills.
that senior managers, particularly at the board
level do not feel a sense of ownership which Financial Management and Accountability
reflects in their individual decision making.
The total financial investment for the 579 SLPEs for
In general there is a pervasive environment of
which data is available stood at INR 3,29,079 crores in
risk aversion which impedes senior managers
2007-08; the total turnover of these 579 SLPEs stood
from being decisive in their decision making.
at INR 2,39,453 crores. Given such large financial
• Performance Culture: Developing a outlays, senior managers need to be responsible for
performance of high culture is critical to the financial management and accountability to their
success of a business strategy. lenders, shareholders (where applicable) and to the
public. Furthermore, many of the SLPEs are making
Negotiation and Communication Skills
financial losses. Superior financial management of
Strong negotiation and communication skills are a the company is one area which can have a significant
pre-requisite for senior managers in SLPEs for the impact on the company’s profitability. Many of the
following reasons: participants also indicated that managers in SLPEs
need to understand that financial management can be
10a strong value creator and support the organizations’ The participants felt that the performance of the Board can
business processes. Furthermore many of the be considerably improved. Some of the insights derived
SLPEs are being financed through debt and equity from the discussion with participants are as follows:
from banks, multilateral/bilateral agencies and the
• Board of Directors do not always have the
government itself. SLPEs are also trying to leverage
necessary knowledge and understanding of
finances through Public Private Partnerships. On the
the business that they oversee and to which
same lines, the Standing Committee of Secretaries
they provide strategic direction.
of Bureau of Public Enterprises in States/UTs has
also recognised the need for listing the successful • The presence of government nominees,
SLPEs on the stock exchanges to raise funds from non-executive directors and management
the capital market for faster growth. This requires representatives from the SLPEs on the board
senior managers to be sensitized towards corporate often lead to conflicting agendas. There is
finance frameworks and rules which help them raise always a probability that the social objectives
money from the market, look at alternative financing of the ministries take precedence over financial
mechanisms, and understand how to structure and considerations.
implement public private partnerships.
• The importance of the non-executive/
Corporate Governance independent directors on the board of SLPEs
was highlighted by many of the participants.
In any company, the Board of Directors is one of the
It is important to have a transparent selection
key elements of the effectiveness of the company.
criterion and independent director should
The Board exercises strategic oversight of the firm’s
be fully knowledgeable of the duties and
operations as well as ensuring legal compliance and
responsibilities expected of their role.
financial integrity.
• DPE has mooted a proposal to make it
The Standing Committee of Secretaries of Bureau of
mandatory for an induction course for
Public Enterprises in States/UTs, which met in New
Independent Directors of CPSEs. On the same
Delhi on 27th-28th April 2011, recommended selection
lines, participants felt that it was important for
of the members on the Board of Director’s of SLPEs
the Board of Directors in SLPEs to go through
through an independent Public Enterprises Selection
a training programme on corporate governance.
Board (PESB) to ensure that the selection of the Board
members happens in a transparent manner and meets a Recommended Programmes
minimum eligibility criteria. It has also recommended
ISB recommends various modules for senior officials
introducing the Memorandum of Understanding
in SLPEs which will provide participants a sound
(MOU) system in SLPEs, on a similar pattern as the
theoretical and conceptual framework for enhancing
MOU system prevalent in the Central Public Sector
their effectiveness in current and future roles. The
Enterprises (CPSEs).
following indicative modules are recommended:
11Leading Teams for High Performance (2 days) • Body language
• Assess their role as a leader in creating a team • Active Listening Skills
• Provide participants with tools and • Understand how leadership failures take
techniques to create high performing teams place when communication is ineffective
and individuals to deliver extraordinary
Negotiation Skills (1 day)
performance.
• Recognize and avoid common barriers to
• Learn how to motivate team member to
negotiations
deliver high impact initiatives and projects
despite constraints • Use persuasion effectively in negotiation
• Learn to move beyond silo thinking and its • Strategies for analyzing and preparing for
impact on decision-making negotiations
Personal Leadership (2 days) • Strategies for managing negotiation
processes
• Understand “self”, the role of a leader and
the leadership process Finance for Non-Finance Managers (3 days)
• Developing better self awareness and • Performance and Value Creation
enhance capacity to lead
Resource Allocation, Discounted Cash Flow
• Develop better understanding of Emotional (DCF) and Value Creation
Intelligence and its linkages to leadership
• Importance of Flexibility in Value Creation
Effectiveness
• Capital Markets and Discount Rates
• Enhance personal goal setting and result
orientation • Financing Decisions and Value Creation
• Learn about effective decision making • Value Based Management (VBM)
process
• Corporate governance and accountability
• Learn how to manage complexity
• Managing Public Private partnerships
Effective interpersonal and Communication
Strategic Thinking and Decision-making (2 days)
Skills (1 day)
• Designing Strategies
• Develop executive presence and
presentation skills ○ Basics of strategy formulation
• Develop effective communication skills ○ Difference between different types of strategies
– what is planned v/s what happens versus
what emerges
12○ Strategic analysis tools Pedagogy
○ Organizational Culture and Decision Making The training modules will attempt to integrate
important theoretical notions with concrete illustrations
• Executing Strategies
of practice so that participants can move beyond
○ Challenges of strategic execution in intellectual understanding to application of concepts.
organizations In order to ensure that the learning is maximized, a
wide range of pedagogical tools may be deployed,
○ Tension between organization and execution
such as :
○ Organizational analysis frameworks to
• Lectures by academics, subject matter experts/
strategic execution
practitioners, other senior government officials
○ Managing tradeoffs
• Contextualized case studies to reinforce
○ Managing Uncertainty learning and application and as a stimulus to
strategic thinking
Each of the above modules should be further
developed and customized to the needs of the SLPEs, • Experiential learning formats that use
post discussions with the selected faculty and senior examples from the current work of the SLPE
management of the SLPEs. leadership and allow them to apply theory to
their context
Corporate Governance (2 days)
• An emphasis on knowledge and experience
This module should cover the following topics:
sharing between participants through group
• Corporate Governance Standards; overview of discussions and other networking opportunities
corporate governance standards from around
• Use of facilitated discussions to encourage
the world
reflection and exchange
• Corporate Governance in Public Sector
• Use of forums and expert panels to stimulate
Enterprises
debate on contentious issues
• The Role and responsibilities of Board of
• Study tour/field visits, if necessary, to observe
Directors, including the independent directors
and internalize learning from best practices.
• Regulatory and financial compliance This could include visits to and interaction
with leadership of private sector companies.
• Stakeholder Management and decision making
• Reviewing strategy of SLPEs
1314
Indian Institute Of Technology, Kharagpur
Recommendations for the Electrical Sector
Chapter 4
Co-ordinators of the Technical Session: very high pace, it faces major challenges in project
management, aging infrastructure and its workforce.
Prof. Avinash K. Sinha
The technical session on training needs for electricity
Prof. Prabodh Bajpai
sector was attended by 15 participants from 12 SLPEs.
The representation was more from electric power
The technical session on Electricity Sector was
distribution companies in southern states of India.
coordinated by Prof. A. K. Sinha and Dr. P. Bajpai of
Electrical Engineering Department, I.I.T. Kharagpur. The discussion was initiated with brief introduction
The seminar on training needs assessment of SLPEs by each participant about their affiliations. It was
was aclaimed as a remarkable initiative of the followed by focus on the following broad topics based
Department of Public Enterprises. It was very much on the response from participants.
needed to guide SLPEs on sustainable growth path,
Major concerns and issues discussed:
and to increase their contribution for the growth of
the Indian economy. a) Investment and project management
In order to maintain an economic growth rate of over b) Technical challenges and efficiency improvement
8% India requires substantial increase in economic
c) Operational efficiency/ inefficiency
activities and faces the challenge of adding the
infrastructure necessary to enable this development. d) Corporate governance
Electricity sector is one of the most important
e) Mission and Vision of the organization
infrastructures for the development of any economy.
Although, Indian electricity sector is growing at a f) Challenges in operation and reasons for shortfalls
15g) Status of reforms and technical up-gradation a corporate entity is far more onerous and
complicated than that of an autonomous
h) New technologies and best practice in electricity
state arm of the Board. With this troubled
sector
succession, the utility work force continues
The outcome of the discussion on above topics and to be steeped in bureaucratic controls and
issues is presented below: ignorant of modern day managerial practices
essential to manage these corporate entities.
• Investment and project management: It
Lack of corporate governance has resulted
is one of the most crucial concerns. In most
in slow decision making culture and utility’s
SLPEs, no strict timelines are followed either
inability to upgrade in time. Also, the external
on new projects or on regular projects. Due
interference has increased as top executives of
to lack of willingness for quick remedy
these smaller entities are now comparatively
and outside interventions, the project
lower level (Govt.) officials.
management suffers.
• Mission and Vision of the organization: Both
• Technical challenges and efficiency
Mission and Vision of the organization are
improvement: Although Indian power
often not known and understood by employees.
sector is developing on fast track supported
All employees must be made aware of this
by multiple policies and programmes of
through proper publicity by the management.
the Government, lack of adequate number
of power plant equipment manufacturing • Challenges in operation and reasons for
companies and delay in release of funds are shortfalls: Challenges are more severe in
major obstacles. Also lack of awareness about distribution sector compared to generation
new technological developments and their and transmission sectors because of direct
benefits at management levels leads to larger customer interaction that impact on financial
project completion times. health of the organization. Large unmetered
load (BPL population, agricultural load),
• Operational efficiency: Various power
power theft, meter tampering, poor power
distribution sector reforms and IT intervention
factor load, intermittent nature of load,
at several levels of operation have led to
lack of skilled staff, poor demand side
improvement in operational efficiency in many
management, power shortage and technical
utilities. These reforms need to be extended
losses are major challenges in distribution
and implemented in all utilities.
sector operation. Although, there has been
• Corporate governance: The transformation an increase in turnover of the electricity
from a monopoly Board to a Company distribution companies after reforms, cost of
structure has been a difficult one, more power procurement is still not fully realized,
100 on the HR front. Managerial talent and and Discoms are unable to pay to Gencos,
quality so essential for efficiently managing which is the major cause of shortfalls.
16• Status of reforms and technical up- should be done by an independent body. Monitoring
gradation: Electronic metering as well and review of training programs should be based
as remote metering is in practice in a few on participant’s feedback to fulfill the shifting
distribution utilities. This has resulted in requirements and needs.
enhanced revenue for them. Reduction in
Based on the discussions regarding major concerns
technical losses by use of switched capacitors,
mentioned by different participants from SLPEs,
feeder renovation programs, transformers with
the following training needs at different levels of
sealed and metered LT side etc. are being tried
hierarchy of the organization should be looked into:
in some forward looking Discoms.
• Top executives training on project management
• Training policy of the organization: Most of
to improve operational efficiency and financial
the SLPEs do not have any specific training
health of the organization
policy except for initial induction training
programme. We futhermore, recommend • Mandatory and regular (once a year, as
that post induction training be provided on mandated by National Training Policy, 2002)
voluntary basis and at irregular intervals training sessions, suited to requirement of
without any training need assessment. different sets of employees
• Provisions and opportunities for • Training on customer relation, for better
professional development of human customer outreach and improvement in
resource in the organization: In most revenue collection
of the SLPEs, support for professional
• Short-term technical courses on recent
development like attending conferences,
developments for lower and middle level
joining membership in professional bodies
executives, for building competence in
is not available and HR department do not
handling technical challenges in daily
have any policies for such support.
operation
• Awareness about new technologies and best
• HR department of the SLPE should spend
practices in electricity sector: No common
some time and effort in preliminary work to
platform is available to have knowledge
assess training needs like the followings:
about best practices and new innovations
developed or adopted in other parts of the • What to train (Training Objectives)
country or worldwide.
• Why to train (Training Policy)
Training Needs Assessment
• Whom to train (Set of Employees)
The training needs must be assessed, designed,
• When to train (at top, middle,
implemented, monitored and reviewed to achieve
supervisory staff, technician level)
desired deliverables. Assessment of training needs
17• How to train (part-time, full-time, Technical training programmes on:
classroom, online, on-field)
• Indian power sector in global
• Where to train (in-house, outdoor) prospective
• Identification of set of experts and Institutions • Structure of Indian power sector after
to provide trainings reforms
• Evolution of resource hub in the organization • Recent advances and future challenges
to develop in-house expertise and exposure to
• Best practice in power distribution
new technologies
sector
Recommended Training Programmes
• Importance of renewable energy
The following training programmes are recommended sources and their integration in the
based on the deliberations: existing power system
Motivational training programmes on: • Distributed energy resources
• Motivational and organizational • Demand side management
commitment
• Micro-grids and active distribution
• Long-term and short-term incentives networks
for extraordinary performance
• Protection system and adaptive relays
• Setting of professional goal oriented
• Smart-grid and IT applications
targets
Personal leadership training programme was
• Benefits from technical and
on:
professional up gradation
• Creation of high performing team
General training programmes on:
and incentives to individuals for
• Environment and Energy extraordinary performance delivery
• Management Training • Understanding of emotional intelligence
to be leader in creating a team
• Corporate Governance
• Effective decision making process
• Decision Making
• Modern management approaches and
• Organizational Awareness
practice
18• Development of effective
communication, executive
presentation and active listening skills
Pedagogy
The most important way to realize the benefits of
training is through motivating people at various levels
to participate in the training programmes. The lack of
good academic knowledge often becomes the major
obstacle in practical understanding. Training modules
should introduce important technical concepts and
integrate it with concrete applications in practice.
This may be supplemented with association of Centres
of Excellence. To achieve positive outcomes from
training the following pedagogical methods may be
employed:
• Classroom training by academics/subject
matter experts, industrial practitioners and
other senior officials
• Lab training by premier academic and research
institutions for intellectual understanding of
practical concepts
• Experiential learning formats that use field
level problems to be solved through theoretical
concepts
• Contextualized case studies to emphasize
learning and application
• Highlighting knowledge and practice sharing
among the participants through group
discussions and other networking opportunities
• Organizing technical talks/ seminars/
conferences/ visits, to provide a platform
for interaction with leaders and internalize
learning from best practice.
1920
Indian Institute Of Technology, Delhi
Recommendations for the Transportation Sector
Chapter 5
Co-ordinators of the Technical Session: The Technical Session on Training Needs
Assessment for Transport Sector was attended by
Prof. Prof. D. Mohan
ten participants from six SLPEs. The discussion
Prof. Geetam Tiwary
veered around the following major concerns as
discussed below.
The technical session on Transport Sector was
co-ordinated by Prof.D. Mohan and Prof. G.Tiwari Major concerns and issues discussed:
of Transportation Research and Injury Prevention
(i) Reasons for shortfalls in operation: There
Programme, I.I.T.Delhi.
are major challenges at planning, operation
Transport sector plays an important role and personnel level. Large financial burden,
for the sustained growth of the economy. State out dated technology, lack of monitoring and
Transport Undertakings (STU) have been providing feed back, poor planning for personnel up
both intercity, and in some states intracity passenger gradation and training are major challenges
transport services since 1960s. Growth in passenger in running transport undertakings. The current
demand, increase in number of urban centres and users are mostly captive users, people who do
growth in spatial extent of cities have resulted in not have access to private motorized vehicles.
pressing demand on STUs for delivering efficient and If, however, we wish to ensure use of public
safe passenger transport. STUs need to understand transport as a popular mode of transporation,
not only the changing passenger demand, but also the then operations have to be made more
changes required in vehicle technology, infrastructure attractive financially as well as reliable, safe
requirement and use of information technology to and comfortable.
provide efficient and safe operations.
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