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Unit 2: Strategic Training

2.1 Evolution of Training Role Notes

Until recently India treated its human capital as inert stock on the same line as accountants treat
the fixed capital. But influenced by the Japanese, the US, more recently the Chinese and the
ASEAN miracle in the early 1990s, the political view of the human capital underwent a paradigm
shift. The Government reconstituted its Cabinet and the administrative set up in November 1985
and carved out a new ministry of HRD with a full fledged senior minister of the Cabinet heading
it and the administrative support extended by a permanent secretary. The central idea behind
the creation of the ministry was to provide to the government an integrated view of the human
resources available in the country and plan and implement suitable training schemes and systems
to upgrade and increase the supply of human resources commensurate to their requirements for
the development of the country to meet the present and the future challenges.

The global competition, initiation of economic reforms and the country’s ambition to join ranks
with the developed countries require that, its existing approach to management development
and training undergo fundamental change. India is opening up. The challenges of opening up
provide a wide range of opportunities subject to the acquisition of relevant skills, competencies
and concepts. The present day of concept of management, development and training envelopes
an all round development covering needs of the individual, team, organisation and society.
The training and management development budget is minuscule and the areas covered are
negligible. The training needs are not taken into consideration. The behavioural training is the
most important requirement receiving scant attention. The training in technology is another
important need of the time. Some States of the Indian Union have caught up with the idea and
have taken up programmes in e-governance. The salaries and wages as a percentage of the gross
domestic product for the country as a whole is about 12 per cent. The money spent on training
and management development is a meagre 0.1 per cent. The number of hours devoted to training
and management development is less that 1 per year.
More than ever before, the 21st century is going to be an era of explosive change manifested by
uncertainty, global competition, high technological obsolescence and fight for survival and
success. In the midst of persisting economic turbulence, global institutional changes call for new
rules of the corporate game. It is no longer enough to comply with governmental directives,
meet production targets or distribute the products at administered prices. There is a growing
demand for value for money for products and services. Competitive advantage, customer
orientation, professionalism and entrepreneurial spirit need to be built up.
Competition has to be addressed by quantum growth strategy of business, creation of value for
shareholders, quality of goods and services, prompt response time, customer focus and last but not least,
achieving sustained organisational capabilities to face the evolving challenges in the market place.
Organisations need to be built to last like institutions of excellence. This calls for a paradigm
shift in the style of management and leadership from reactive response to proactive approach
and from a managerial mindset under protected environment to a mindset under competitive
environment. Profit making companies need corporate renewal as badly as loss making
companies need corporate turnaround.
In view of cataclysmic changes taking place in the environment, the human factor has become all
the more important. Organisations are becoming increasingly dependent upon people as business
tend to be more complex and diverse. In “Master of Change” William Boast writes “If the
corporation fails the human element, the very ground upon which it depends for its stability
will collapse. Organisations exist for the people they serve, whether it is the Japanese miracle,
American revival, German work ethics or Israeli resilience - sustainable economic success has
been possible world over only by people and through people. As corporations trim their fat,
innovate their products and services, reorient strategies to add value to the delight of their

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