“A Study on Trainings Effectiveness in Rastriya Banijya Bank”

At

Rastriya Banijya Bank

Pulcowk Branch

Kathmandu,Nepal

Submitted to:

Citizen College

Faculty of Management

Pokhara University

An Internship Report

Submitted by:

Asma Basnet

Symbol no: 10031390

BBA 6th semester

Citizen College

In partial fulfillment of the requirement for the degree of

Bachelors of Business Administration

Kathmandu Nepal

ACKNOWLWDGEMENT

At first I would like to express my sincere gratitude to all the staff members of Rastriya Banijya Bank, especially Mr. Dwij Raj Bhatta the branch manager for RBB at pulchowk branch. It has been my privilege as undergraduate of Business Administration to work as an intern in Rastriya Banijya Bank Limited. One of the most reputed banks in the country. I would like to extend appreciation to all the staffs of different departments who cooperated with me and unquestionably supported me throughout the internship duration.

I would also like to extend my sincere thanks to Mr. Bhaibav Adhikari, the coordinator of the internship program at citizen college and to all my friends and colleagues who deserves it for their valued help while preparing this project report.

Finally I pay my sincere obligation and gratitude to P.U. and to the respected teachers of Citizen College as well, who provided a good deal of knowledge and ideas for the existence of this output.

Though it has been tried to show the true concept of loan and advances of RBB, there may still exist some defaults and missing information, and I heartily welcome all comments and suggestion on this research work.

Thank You,

Asma Basnet

BBA 6th semester

Citizen College

Satdobato, Lalitpur.

TABLE OF CONTENTS

Chapter 1

1. Introduction1.1General Background

1.2 Focus of the study

1.3Statement of the problem

1.4Objective of the study

1.5Need & importance of the study

1.6 Scope of the study

1.7 Limitation of the study

1.8Research Methodology

1.8.1 Research Design

1.8.2 Data Collection

1.8.3 Data Analysis

1.9Review of Literature

1.9.1 Conceptual Review

1.9.2 Review of other Literature & documents

Chapter 2

2. Data Presentation & Analysis2.1SWOT Analysis of the training program of RBB

2.2Study and analysis of training program of RBB

2.3Effectiveness of credit training conducted by RBB

2.4Report on the effectiveness of credit training

2.4.1 Facts & Figures

2.4.2 Data Presentation

2.4.3 Interpretation

2.4.4 Findings

2.4.5 Conclusion & Recommendation on the effectiveness of the credit training

2.4.6 Recommendation

Chapter 3

3. Conclusion, Recommendations & plan of Action3.1Conclusions

3.2Recommendations

3.3Plan of Actions

CHAPTER I

INTRODUCTION

 

1.1 General Background

This study report entitled "A Study on Trainings' Effectiveness in Rastriya Banijya Bank" is the partial requirement of Master in Business Studies. Training being the vital ingredient of success for any organization, it is important to look into how the training being conducted and the output of those training as well. As understood, a training program has different phases; Pre training (need assessment, Pre training management); Implementation (Execution of training); and Post training activities (Evaluation, Finding out Effectiveness of training). Training Effectiveness is an on going process. Every training incurs some costs, time and resources. Maximizing utilization of all the available resources is prime objectives of any organization. On the one hand training effectiveness study helps whether the costs, time. Resources incurred at the training has produce the expected result or not. Likewise these types of study also helps to identify further training requirement to the employees working in the organization.

1.2 Focus of the Study

This report is a study based on Field Visit and Respondent visit, discussion with supervisors and review of relevant documents. The purpose of this study is to assess the effectiveness of training provided by "Training and Development Department of Rastriya Banijya Bank".

This study focuses on assessing one of the training programs titled "Credit Training: Corporate Account Management Program" organized by Rastriya Banijya Bank (RBB) for a group of its thirty employees.

 

1.3 Statement of the Problem

Rastriya Banijya Bank has separate Training and Development Department which design and conducts in-house training programs for its employees on various aspects of core banking operation and management and organize the training program on different functional areas of bank operation by coordinating with the concerned departments. Although many programs are conducted, the effectiveness of such program is not often assessed. In view of the time and resources employed in theses training programs a study of their effectiveness in terms of enhancement of employee's performance to acceptable level so that they are able to solve the problems and increase the productivity of the organization is very essential. Further, the employee's positive change in attitude toward the organization and their acquisition of knowledge and skill during the training will benefit both the employees and organization. On the other hand if the program is not effective there will be mere wastage of resources including the precious time of all.

Therefore evaluating of the effectiveness of training program has become a necessity and a challenge.

1.4 Objective of Study

As per the rational described above, the objective of the study are as follows:

a. Studying the profile of RBB and its Training and Development Department as an organization. b. Analyzing the present function of Training and Development Department of RBB. c. Performing SWOT analysis of the same department of RBB. d. Reviewing and analyzing impact assessment of one of the training programs conducted in RBB. e. Analyzing the usefulness of such training in improving the performance of RBB. f. Determining plan of actions required for the development of the Training and Development

Department of RBB through the outcomes of SWOT analysis and the specific case study of impact study.

1.5 Need and Importance of Study

Rastriya Banijya Bank, a state owned commercial bank is also regarded as one of the biggest employer in the corporate sector which holds largest share in deposit and lending. The manpower working in this organization is also one of the crucial factor for not being a prudent bank in the past. In the present competitive banking scenario, the skill enhancement of the employees has been felt must and is an continuous efforts. In this regard, it has been felt necessary that to understand the effectiveness of training conducted by this corporate body.

After consultation with Human Resource Department, Training and Development Department and their documents (Policies), it is learnt that the employee of the organization should be enhanced and refreshed by imparting them by required modern skills. The organization (RBB) has focused more on training and development. The organization has established Department called "Training and Development" for this purpose and putting all its efforts to fulfill set objectives. But the most important and lacking part is that, it has not attempted to carry out post training evaluation, the effectiveness of training so far. Among the training provided, the training on credit, credit appraisal or credit management, are prioritized.

The reason behind to choose Rastriya Banijya Bank as an organization and effectiveness of training conducted by the bank are:

Largest commercial bank in terms of deposit and lending.One of the largest employer among the corporate body

Has its own training centre

As an efforts of improvements, the present management team has given priority to training and development

No studies so far has been conducted to look into the effectiveness of training by the organization

Among all the training programs, credit and credit management has been prioritized and covers the bulk percentage of trainees and budget.

So it is obvious to study the effectiveness of the credit trainings since the organization has given priority for skill enhancement of the employee more on credit aspects and spent large resources such as cost, time and people.

1.6 Scope of the Study

The main scope of the study is analyzing the Training and Development Department of RBB and proposing action plans for increasing its organizational effectiveness. For this both RBB and its Training and Development are taken for study. A special case study of one of the training programs is analyzed with the help from the participants review and findings based on such primary date are taken as sources of information for further preparation of plans towards improving the Training and Development Department of RBB.

1.7 Limitation of the Study

Due to the limited time available for collecting materials, study documents, data detailed investigation and review are not possible to conduct and this has governed the fixing of scope of this study accordingly. Although there are a variety of key areas available from the perspective of management and organizational behavior, the study is bound to review only a certain aspect. Some limitations imposed due to the nature of training and timeframe are found as follows:

Limited time restricting to explore more innovative method which can enhance the quality of this Study Report. Wide range of topics is available for studying a particular organization but only a particular topic is selected for the study purpose.

The Study Report is based on the limited materials collected and information derived from the data obtained from questionnaire and informal interviews. Therefore the analysis of findings is largely based on qualitative method.

The organizational effectiveness measured through SWOT analysis depend greatly on the general knowledge of researcher and there may have ample areas where concerned people can have arguments/reservation. Therefore validation of any findings covered in this Study Report should be tested further through in-depth objective methods who wish to carry out the study of the particular organization such in-depth scope is not included in this report.

1.8 Research Methodology

1.8.1 Research Design

The study is largely focused on the structure the organization under study and its function. The study has firstly attempted to describe briefly background history and profile of the organization under study and then its budget and resource allocation. Further the study describes the program and activities of the organization. Acquiring knowledge about the given organization the researcher proposes the SWOT analysis based on the available data and information.

1.8.2 Data Collection

A special case study focusing one of the training programs in undertaken for the impact assessment of such training which can guide the organization to design the training course and types more suit to the work. Impact assessment is carried out with the help of primary and secondary data and information. Such data and information are collected in the following way:

a) For primary data and information:

Table fill out by supplying questionnaire to the participants of the training and informal interview with them.

Informal interview with few supervisors of the participants.

Discussion with the staffs of the Training and Development Department of RBB

b) For secondary data and information

Materials e.g. bulletin, journals reports produced by RBB

Various annual and progress reports as provided by the department.

1.8.3 Data Analysis

At the end of this report conclusion and recommendations are drawn from the findings of the report by using qualitative analytic tools. A wide range of recommendations are derived for the future implementation. For this the plan of action is also prepared and presented in a tabular form which can be undertaken by the organization to increase its effectiveness.

 1.9 Review of Literature

As mentioned in the background part above, the review of literature gives the ample ideas of the theoretical as well as practical aspects of training and evaluation. It will through light on the areas like what is training, what can be objectives, what are things that should be considered about training, and why the evaluation of training is important and how it can support or help the training management also to manage and design further training.

In this regard some books, journal plans and documents were reviewed and the different opinion from those writers, scholars have been presented as followings.

1.9.1 Conceptual Review

Theoretical Aspects of Training

Training is a learning experience that seeks a relatively permanent change in an individual that will improve the ability to perform on the job. It is not only changing of skills, knowledge, attitudes, or behavior, but changing what employees know, how they work, their attitudes toward their work, or their interaction with their coworker or supervisors.(Decenzo and Robbins, 1999:227).Employee training and development is any attempt to improve current or future employee performance by increasing, through learning an employee's ability to perform, usually by increasing his or her skills and knowledge.(Schuler,1984: 388).

Training refers to the process of imparting specific skills. Development refers to the learning opportunities designed to help employees grow. Education is theoretical learning in classroom.( Aswathappa, 2005: 194)

Training refers to the organization's efforts to improve an individual's ability to perform a job or organizational role whereas development refers to the organization’s efforts (and the individual's

own efforts) to enhance on individual's abilities to advance in his organization to perform additional job duties.(Dunn, and Stephens, 1972: 181)

Training is a process of learning a sequence of programmed behavior. It is application of knowledge. It gives people an awareness of the rules and procedures to guides their behavior. It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance but also those which bring about growth of the personality; help individuals in the progress towards maturity and actualization of their potential capabilities so that they become not only good employees but better men and women. (Mamoria, 1992: 308)

Training and Development, a planned, continuous efforts by management to improve employee competency levels and organizational performance. Training Activities designed to provide learning with the knowledge and skills needed for present jobs.Development Learning that looks beyond to day's job; it has a more long-term focus. ( Mondy, Noe and Premeaux, 1999: 28)

Corporate body all over the world spends billion of dollars a year on employee training, there is no clear consensus, within the training community on how to determine its value. Obviously, the credibility of training and development can be greatly enhanced if the tangible benefits to the organization from such programs can be shown. Thus, the training and development department must document its efforts and clearly show that it provides a valuable service. (Mondy,. Noe, and Premeaux, 1999: 254).

Goals of Training

Training validity Did the trainees learn skills or acquire knowledge or abilities during the training?

Transfer validity Did the knowledge, skills or abilities learned in training lead to improved performance on the job?

Inter organization validity Is the job performance of a new group of trainees in the same organization that developed the program comparable to the job performance of the original training group(s)?

Inter organizational validity Can a training program that has been validated in one organization be used successfully in another firm?(Ivancevich, 2001: 384)

The focus of training is on learning by an individual the new ways of doing things, i.e. better performance, and secondly, the transfer of learning in the work situation, directed to greater organizational effectiveness, and the resultant impact on the target beneficiaries.( Bhatnagar, 1987:2)

Theoretical Aspects of Training Evaluation

1. Any training or development implemented in among effort must be cost effective. That is, the benefits gained by such programs must outweigh the cost associate with providing the learning experience. Only analyzing such program effectiveness can be determined. It is not enough to merely assume that any training an organization offers is effective. We must develop substantive data to determine whether our training efforts is achieving its goals, that is, if it is correcting the deficiencies in skills, knowledge or attitudes that were assessed as needed by the situation.( Minghan, March 1996:. 152.)

2. Evaluation of training effectiveness is one of the fundamental principles of training and development. Without evaluation, one can not determine the effectiveness of such programmes. It is imperative to determine how well training and development programs will achieve the goals that

have been determined. In addition, this also aids in evaluating other human resource programmes and their effectiveness relating to increasing productivity and quality of work life. (Adhikari, , 2005: 133.)

3. The main objective of evaluating the training programs is to determine if they are accomplishing specific training objectives, that is correcting performance deficiencies. A second reason for evaluation is to ensure that any changes in trainee capabilities are due to the training program and not due to any other conditions. Training programmes should be evaluated to determine their cost effectiveness. Evaluation is useful to explain programme failure, should it occur finally, creditability of training and development is greatly enhanced when it is proved that the organization has benefited tangibly from it. (Aswathappa, 2005: 216)

4. Principles of Evaluation

Evaluation specialists must be clear about the goals and purpose of evaluation.

Evaluation must be continuous

Evaluation must be specific

Evaluation must provide the means and focus for trainers to be able to appraise themselves, their practices, and their products.

Evaluation must be based on objective methods and standardsEvaluation of training programmes provides assessment of various methods and techniques, sells training to management, identifies the weaknesses of training programmes and helps to accomplish, the closest possible correlation between the training and the job. (Dwivedi, 1990: 129)

5. Objectives of training evaluation is to determine the ability of the participant in the training programme to perform jobs for which they were trained, the specific nature of training deficiencies, whether the trainees required any additional on the job training, and the extent of training not needed for the participants to meet job requirements. (Mamoria,1921:P 345)

6. The evaluation step is the final phase of the training and development program cost benefit analysis generally is more feasible for training and development than for many other human resource management functions. Costs are relatively easy to compute. They equal direct costs of training (trainer, materials, and lost productivity, if training is done on company time) plus indirect costs (a fair share of the administrative overhead of the HR department. The evaluation should be made by comparing the results (the benefits) with the objectives of the training and development program that were set. ( Ivancevich,2001: 415)

Above literature highlights the training a basically, motivating factor, transformation of knowledge and enhancement of necessary skills. Training also helps to see the things from different perspectives.

Likewise, training evaluation is to understand or examine whether the objectives of training has been achieved or not, the transformation of knowledge has been made or not whether the productivity has been boosted or not and it is a guiding factor for areas of improvement in the days to come or designing future training programs.

1.9.2 Review of Other Literature and Documents

Background of Organization / Project.

Rastriya Banijya Bank is one of the largest domestic commercial Bank of Nepal which was established in 10th Magh 2022 under the Rastriya Banijya Bank Act. 2021 and now incorporated under Bank and Financial Institution Act 2058.

The objectives to establish Rastriya Banijya Bank were to cater the banking services in the nooks and corners of the country by accumulating the surplus of the people as deposit and lending to the needy. Likewise other objectives were to facilitate government transactions, displacement of Indian currency circulation and so on. To fulfill these objectives the organizational structure of the bank expanded horizontally and vertically. Being a state bank, it has compulsion to implement the government policies like one bank for 35 thousand people, Intensive Banking Program, CSI Program, Priority Sector Program, MPCW, PCRW, and Lead Bank program, are some of the program that the bank had launched in the past. For launching these programs rapidly, the bank branches expanded without the feasibility study and proper homework. On the other hand the bank had to open branches in political pressure too. So, with the expansion of the branches, the bank recruited the people accordingly. At the beginning some of the employee were handed over from Nepal Rastra Bank, some were taken from Nepal Bank Limited and rest were recruited without testing their ability required for the bank. Similarly back door entry became the major source of recruitment.

In these course, the bank went on opening the branches, regional offices to monitor branch's activities and departments as well as recruiting the required manpower accordingly. It went up to 212 number of branches, 8 regional offices and 17 departments and the no. of employee of different level reached around 5,960.

Only after 2033 BS. Employee were recruited by competition. But the testing criteria were still traditional. There were not clear cut policy of career development. Training was almost out of reach of the employee. Promotion at the officer level were some how faster but for the non-officer level it was like a iron gate. Reward and punishment system were very crude and very few employee used to be rewarded. On the other hand, the punishment system was too much time consuming that the system was fail to communicate the message as not to engage in such irregular activities.

Rastriya Banijya Bank coming up to this stage has encountered various ups and downs. Since, some couples of years back, it had been facing tremendous financial problem. Different study repots have pointed out towards it financial health and quality of human resources and have suggested the needs of improvement and reforms for its sustainable growth, which is the main reason behind the bank now has gone under management contract since last five years.

The following table depicts the financial position of the bank in the past (2023-2059) and the financial position after take over of present management (2060-2064).

Table-1

Rastriya Banijya Bank in Figures

S.N. Particulars YearsAsadh

2023

Asadh

2033

Asadh

2043

Asadh

2053

Asadh

2059

Asadh

2060

Asadh

2061

1. Total Deposit Rs in Mill 4 533 3792 21035 38999 39402 40867

2. Loan Rs in Mill 25 408 2520 17066 27037 26609 25106

3. RBB Share in Total Com Banks Dep.

% 3 33 37 29 21 19 18

4. RBB Share in Total Com Banks Loan

% 2 34 32 28 19 16 14

5. Investment Rs in Mill - 38 548 1870 4159 4623 3117

6. Income Rs in Mill 0.09 63 461 2284 2123 2366 3766

7. Expenses Rs in Mill 0.92 58 458 3528 9191 7196 2725

8. Net Profit (Loss) Rs in Mill (0.83) 5 3 (974) (7068) (4840) 1040

9. Operating Profit (loss) Rs in Mill (0.83) 4 (1) (1132) (7075) (4847) 976

10 Total Branch No. 7 68 183 210 172 128 117

11 Total Staff No. 208 1530 5752 5961 5583 5402 3996

(Souvenir, Rastriya Banijya Bank, 2064 Magh 10, Page 6)

Efforts of Improvement

As the role of RBB in the economic development of the country is vital, the government took initiation to improve the bank in 1989 by appointing Booz-Allen and Hamilton and Earnest and Young of Commercial Bank Problem Analysis and Strategic Study (CBPASS). The study was conducted during 1989-90, which had covered following six diagnostic areas.

Financial Review: CBPASS reviewed the financial statement for the period ended 15 July 1989. The report concluded that the bank incurred a net loss of Rs. 888 million during the period as of the date where the bank's total liabilities exceeded its total assets by 753 million.

Credit Portfolio Review: CBPASS reviewed different portfolio of the bank and recommended that RBB must increase its capital by Rs. 184 million to meet the capital adequacy requirements under BIS (Bank for International Settlement) guidelines.

Operations Review: CBPASS reviewed various functional areas of the bank and noted many improvements require in different areas.

Strategic Development: CBPASS reported that RBB need strategic and business segment plans follow to achieve adequate profitability.

Hand on Assistance: CBPASS expatriate trained few personnel in computer operations and loan recovery for the better efficiency in the problem areas.

Institutional Development Program: For the better development of the bank CBPASS reported various activities to be done immediately in different areas.

In the second phase of the CBPASS they had developed pilot project and were in the process of implementation. During the implementation phase the project was terminated and RBB was just asked to carry their day today functions only. In this way two years study efforts and money were spent for nothing.

In 1997/98 Nepal Rastra Bank initiated a reconciliation study program where RR Bajracharya and Co. carried out the study, which suggested to update accounting standard and identified some of the key accounting problems of the bank. In 1998/99 HMG appointed KPMG Warent and Company for the over all study of the bank. The company studies the bank for six months and identified serious problem of the bank. Some of the issues raised by the KPMG Warent regarding HR include low morale, low pay scales, skills-sets, and counter-productive union oriented activities. It further states management and staff at all levels do not fundamentally view RBB as commercial bank. Management has not properly staffed the unit with organizational responsibility. Regarding the reward punishment system the report states RBB had incentives and penalties system but thee has been eliminated or severally diminished. These situations along with below market pay scale and weak staff/management discipline have eroded employee moral, motivation and productivity. Concerning skills and training the report says staff and management skills are weak by any standard, internal and external training programs are far below international standards, training coverage (6%) is far below the needed levels for catch-up training, staff have no exposure to international best practices. KPMG had raised the issues about the golden handshake program. The report states out-placement or Golden Handshake program have not been attempted. The repot concludes that RBB is over staffed, under-skilled and no-plan to correct the situation.

The negative net worth, the accumulated NPA and conservative working style could drag the country in a serious financial crisis. HMG with the involvement of NRB have a serious consideration on the worsening condition of the bank and decided to give the bank operation management to the foreign professional in the management contract.

In the process of management contract HMG and NRB decided to withdraw all the directors from NRB/HMG and NRB interfered in the management of RBB by taking the whole management. In this process NRB restructured the board of directors. In the process of management contract, NRB sent a team to RBB for monitoring the major activities of the bank. In the mean time, NRB had also asked to stop new lending, restructuring the old loans and had also stopped transfer and promotion of staff. At that time the bank asks RBB to concentrate their attention in the recovery only until the new management comes.

Nepal Rastra Bank also concentrates its efforts for management contract and signed on an agreement with Deloitte Touche Tohmatsu. The bank waited for long expecting that Deloitte will resume the responsibility of bank management but ultimately Deloitte turn down the contract. With this bitter experience NRB begin to choose an individual professional who has proven experience of banking

reform. Ultimately Bruce F Henderson's team took over the management of RBB in 2059/10/1 as a CEO with the 17 members management committee.

Present Management Team (PMT)

The fundamental TOR of new management team is to restructure the bank and make it viable commercial bank within a period of two years and extended the tenure for 5 years. NRB has categorically identified different factors, which the new management is effortful to achieve. PMT has a sound understanding on the role and contribution of RBB in the national economy and has tried it best efforts to make the RBB as a viable bank. In order to achieve this objective many program are in consideration.

The Vision, Mission, Goal of PMT of RBB

Vision/Mission/Goal

New Mission Statement:

Be an Active Engine of Nepal's Development Engage in Productive Lending to Benefit Economy

Provide Bank Products/Services at Reasonable Cost

Operate with Appropriate Disclosure and Transparency

Development Bank Staff to be Banking Professionals

Foster Cooperation between all stakeholders.

Earn the Respect of the Banking Community

Include job Creation as a Criteria of New Project Lending,

New Vision/Goals Statement:

Create Model Commercial Bank To serve Nepal Be Profitable and Return a Reasonable Divided to Shareholders.

Create Satisfied Customers and Address Their Changing Needs

Accommodate all Nepal's Productive Sectors.

Development Product/Services to Meet Sector Needs

Create Job Opportunities for RBB Staff

Compensate/Reward RBB Staff for "Job Well Done"

Automate or Abdicate

Restructuring Approach:

Diagnostic Review of Each Area of Responsibility Identify Critical Issues Changes in Each Area

Assess Changes by 4 Criteria - Loss Prevention, Income Generation, Product/Service Delivery and Compliance

Prioritize Implementation of Necessary Changes

Develop Strategic Plan to Guide Change Process

Develop Plan to Manage Growth

Ensure All Change are Sustainable

Human Resource

Critical Issues/Action Steps

Table - 2

1 Personnel/Staffing Action Steps

A Overstaffing (40%) and non-operational Staff (27%)

Fair and acceptable retrenchment and retirement plan

B Low moral, low salary, lack of motivation

Revise regulations and pay scale, effective reward and discipline system

C Lack of banking knowledge, low desire to learn

Well defined job description, regular performance-based job appraisal and accountability

D Lack of innovation culture among staff Motivate staff, reward for excellence

E Reluctance to adopt change Stress importance of new assignment

F Wrong recruitment process selection without basis and criteria

Proper job description & skills requirement analysis and selection on a competitive basis

G Lack of job orientation Must train staff adequately

H Lack of flexibility Stress importance of job rotation to learn new skills

I Lack of marketing culture: product and services diversification

All staff must be aware of banking product and services

J Inadequate training- program is not based on job requirement

Training needs must be assessed

2 Management Actions Steps

A Lack of HR Planning (Qualification, Promotion)

Establish short term and long term planning

B Ineffective organizational structure to control existing office network

Organizational structure must have a clear mandate and work scope

C Office expansion without business plan/adequate control mechanism

Categories RBB branches based on business type and volume

D Inequality of opportunity, performance evaluation and promotion system

Form professional top management based on performance based promotion

3 Regulatory Action Steps

A Lack of transparent policy for staff transfers

Develop a rotational, incentive based job transfer policy

B Lengthy discipline process for corrupt staff

Expedite pending disciplinary actions

C No Consequences for in-efficient staff Strengthen policies and practices for staff supervision

To implement the above mentioned vision/mission/goal and human resource issues and action steps, Rastriya Banijya Bank developed the Human Resource Plan in July 2003. This was the master document regarding human resource development. The followings are abstracts of HR Plan, specially regarding the training and development.

Training and Development Plan

Training programs are directed toward maintaining and improving current job performance, while development programs seek to develop skills for future jobs. Both managers and other employee may receive help from training and development programs. But the mixture of experiences is likely to vary. Non-managers are much more likely to be trained in the technical skills required for their current jobs. Where as managers frequently receive assistance in developing the skills required in future jobs.

New employees have to learn new skills and since their motivations likely to be high, they can be acquainted relatively easily with the skills and behavior expected in their new position. On the other hand, training for experienced employee can be problematic. The training needs of such employees are not always easy to determine.

Basically there are four procedures to determine the training needs of individuals.

1. Performance appraisal - Each employee's work is measured against the performance standards or objectives established for the respective job.

2. Analysis of job requirements - The skills or knowledge specified in the appropriate job description are examined and those employees without necessary kills or knowledge become candidates for a training program.

3. Organizational Analysis - The effectiveness of the organization and its success in meeting its goals are analyzed to determine where differences exist. For example, members of a department with high turnover rate or a low performance record might require additional training.

4. Employee survey - Managers as well as other employee are asked to describe what problems they are experiencing in their work and what action they believe are necessary to solve them.

The bank will conduct a survey regarding the training need assessment. Each employee will be provided a training need sheet mentioning their work nature and requirement of trainings.

Likewise the supervisors will be asked about the trainings needs of his/her subordinates.

After receiving the performance appraisal of every employee, and compiling the training sheet and performance appraisal. The training areas will be decided. Training need sheets, filled up by supervisors will be taken as the basis for identifying training requirements.

Once the organization's training needs have bee identified, appropriate training programs will be launched. There are various training approaches available. The most common of these are on the job

training methods, including job rotation, in which the employee over a period of time, works on s series of job, thereby learning a wide variety of skills, internship, in which job training is combined with related classroom instruction and apprenticeship, in which the employee is trained under the guidance of a highly skilled co-worker. Besides thee there are other approaches like off-the job training, behaviorally experienced training, role playing etc.

Looking into the banks condition, the following training will be launched.

Pre-service training : when the recruitment process is over and before to kick off the carrier, training related to carrier will be offered. The norms values, rule and regulation, corporate culture of the organization, system, and structure etc will be the subject matter. The training will include job description, how to perform the job, how their performance will be appraised etc.

On the job training: Besides job rotation, basically four types of training will be offered;

Operational:

- Customers handling

- Branch operation

- Office operation

- Interpersonal relation

- Group Dynamic

Technical/Professional:

- Computer /Information Technology

- Credit Mgmt/Recovery

- International Trade

- Accounting

- Auditing

- Project Appraisal

- Statistics

- Research Methodology

Managerial:

- Leadership skills

- Communication skills

- Management Information System

- Report writing

- Managing HR

- Corporate strategy/plan

- Productivity improvement

Other specifics:

- Treasury Mgmt

- Letter of Credit

- Assets/Liability Mgmt

.- Deposit/Fund Flow Mgmt.

- Liquidity Mgmt.

To fulfill the immediate training need at different levels of organizational structure in-house short term training will be conducted. Besides this, employee will be sent to the low cost bearing short term training course offered by the different national an international agencies.

As a long term training, request will be made to the international agency such as APRACA, CICTAB and reputed training institution aboard such as NIBM to design and conduct the training course as needed by the organization. Likewise, for the funding for the training request will be made to the international donor agencies such as USAID, GTZ, JICA and others.

The Training Centre will be strengthened with the needful infrastructure enabling to conduct standard training programs, Academically sound and well-experienced in conducting training will be identified as faculty member in different disciplines. They will be offered training for trainers programs within the country and abroad. (H.R. Plan, Rastriya Banijya Bank, July 2003 Page J 1, 2, 3)

After designing (formulating) the human resource plan, on the basis of Human Resource Management Plan, the bank developed the skill enhancement plan, which illustrates the details of different training programs for different level of employees, and training and development action plan for five years. Some of the important aspects of Skill Enhancement Plan has been presented below.

Training

As per the organization structure of the bank, the primary training need assessment show there are three levels of training need. Training for employees working at the branch level, regional office level and central office level, Furthermore, each of this level has been categorized as functional, professional/managerial and executive.

Functional training will be provided to front line worker such as teller, assistants and others. Professional/Managerial training will be provided to the Branch Managers, Unit Chiefs of the Regional

Offices and middle level managers/officers. Executive training and workshop will be conducted for top level executives and senior managers.

Training will include basically 3 dimensions i.e. pre-service, on the job and successive or placement policy. For identification of training needs employee survey on an individual or category basis will be conducted. This aspect also will take care of job assignment (job description, job specification etc.)

Generally training requirement will be planned to meet through in-built capability of the bank's own Training Centre (Division). Besides, training will be provided out side available sources or institutions, some of the sources in this regard can be illustrated as below.

1. Banker's Training Centre, NRB 2. Management Association of Nepal 3. Administrative Staff College, Nepal 4. National Institute of Bank Management (NIBM) 5. Public Administration Association of Nepal 6. Institute of Chartered Accountants of Nepal 7. Asia-Pacific Rural and Agricultural Credit Association (Bangkok) 8. Banking Training Centre, Hong Kong 9. Management Development Institute, Gurgaon 10. Development Finance Institute, Philippines.

Training Centre

The growth in the financial market, country's association with international organization, Financial Sector Reform Project have laid foundation for the competitive environment that are likely to generate further dynamics in the future. This has apparently put pressure on the need for capacity building of the human resources that can compete with the growing need. So, it is obvious, that the organization must have its own in build mechanism or facilities to cope with the changing requirements.

The existing training centre will be redesigned and strengthened by arranging required facilities, logistic supports and staffing. The centre will function under Training & Development Department in the Central Office premises, and Training Consultant or Consultancy Services will be obtained if and when needed. Likewise trained staffs will be deputed to the centre as instructors and trainer instructor/facilitator or guest speaker from the related field will also be hired or invited.

Mobile training and Follow-up

Besides the centralized training programs some mobile training program will also be conducted as per the requirement. Similarly follow-up programs for the previously trained people will also be there.

Training level and Requirements

The functions and operation area of different level of organizational structure varies accordingly. The requirement of branch, regional and central departments are different. Therefore among all the training areas and requirements, the following level-wise categories have been made to plan and initiate training programs which is presented below as an illustration.

 

Table - 3

Organization Level

Employee Level Training

BranchManager/

AccountBranch Profitability MIS, A/L MKT., Inter Personal, Project or Credit Appraisal

Assistant General Banking MIS (Stat.), Computer, Customer relation.

Officer Mkt., Project., Appraisal Reconciliation, NPA/Risk Mgmt. Behavioral Training

Regional Chief/Deputy Chief A/L Mgmt, Recovery, NPA and Risk Mgmt. Audit, Credit (Project Appraisal) MIS/(Stat.)

 Officer Finance, Managerial Accounting, Mkt.

Monitoring

 Assistant MIS (Stat.) Mkt. Credit, Process Group

Behavior/Dynamics.

Head office Dept. Head/ Deputy Chief

A/L Mgmt. Recovery mgmt. Finance, Mkt., Treasury Int. Business, Documentary Credit, H.R.M. Audit MIS, Branch Operation Inventory Mgmt., NPA & Risk Mgmt. Managerial Accounting, Fund/Liquidity Mgmt. Reconciliation, Credit Appraisal, Budgeting, Strategic Planning

Officer

Assistant

Present management has taken the employees skill enhancement plan basically in two ways:

a. Management Development Programs b. Training Programs

Management Development Plan

Management development is concerned with developing the experience, attitudes and skills necessary to become or remain an effective employee. Management development programs will be develop, designed, conducted, and evaluated on the basis of vision, mission, goal and objectives of the bank. These programs will be launched to fulfill the needs of the individual employee who are to be developed, and anticipated changes in the organization. The following will be the process.

1. Organizational objectives,2. Management inventory & Succession Plan

3. New Management Requirement (Quantity & Quality)

4. Need Assessment

5. Management Development Objective

6. Management Development Programs

7. Evaluation of Programs.

An organization's objectives play a significant role in determining the organization's requirements for all levels of employee. The bank is undergoing rapid change in organizational structure, new policies, programs, procedures and mechanization. So on the one hand the current employee has to enriched with the new knowledge, skills and attitudes needed, and on the other, new employee with required experience, skill and knowledge has to be hired. The management has set the objective accordingly.

Objectives

To make the all-level employee committed to fulfill the vision and goal of the organization.To identify the knowledge, skill and attitudes in different levels and different tasks.

To fulfill the required knowledge, skills and attitude through different training programs.

To hire the knowledgeable and experienced manpower.

Management Inventory & Succession Plan

Management inventory is a specialized form of skills inventory for an organization's current management level. It also includes basic types of information such as brief assessment of past performance and potential for advancement. Management succession plan is the chart of schedule that shows potential successors for each management position within the organization.

The bank will have a management inventory and succession plan as follows: (for illustration)

Table - 4

Name of Present Length Retirement Past Positions Replacement Qualification and

Employee Position of Service

Year Position Previous Training Record

1 Mr. A Dept. Chief, strategic planning Dept

23 Yrs 2067

a) Ag. Officer

b) Deputy C.O.

c) Deputy Chief Micro Credit Dept.

d) Chief, MIS

Dept. Chief Training & Dev.

BSC Agri. (Hon), MBA

Strategic Planning

Training for Trainers

2. Mr. B Dept.Chief, Human Resource Dept.

25 Yrs 2065

a) Adm. Officer

b) Deputy Branch Manager

c) Deputy C.O.

d) Deputy H.R. Dept.

e) Chief, I.T.

MIS/I.T. Dept. Chief

MPA, MBA, IT Course, various executive Management courses

3. Mr. C Branch Manager

22 Yrs 2068

a) Acc. Officer

b) Deputy C.O.

c) Branch Manager

d) Credit Chief, Reg. Office

Credit Dept. Chief

MA Eco. Credit

Training

Various Executive Management Training

(Skill Enhancement Plan, Rastriya Banijya Bank, January 2004)

Organization Structure of RBB.

 BOD

CEO

Management committee

Chief Executive Officer Chief Financial Officer Chief Credit Officer IT Manager

Deputy General Manager

Other staffs

 Figure - 1

The board of director is the Supreme authority of the Bank and is responsible for policy formulation and implementation an implementation of the guidelines which are forwarded by the Government and the Central Bank i.e. Nepal Rastra Bank. The Government has nominated the board members including Chief Executive Officer. The executive power is initiate thus from CEO. The management committee headed by CEO under the Board is responsible to look after routine affairs of the different banking departments. The Management committee is a team of multidisciplinary professions. Members of the Committee are mainly Chief Executive Officer, Chief Financial Officer, Chief Credit Officer and IT Manager. Below the Management Team all the personnel are in house headed by Deputy General Manager. Currently RBB has 15 permanent departments with department chief of 1st class (level 10) in rank in the central office and 4 regional officers in 4 development regions. RBB has the largest branch network in Nepal connecting 48 branches in mountain region, 46 in terai region and 19 in the Kathmandu valley. The Operation Department is responsible for supervising the branches and the Internal Audit Department monitors the work of branches, regional offices and other departments.

Training and Development Department of RBB

The Growth of RBB from its emergence had been significant during its early days. Various types of work as demanded by the prevailing conditions of the market of those days as well as need for supporting as BANK for the government transaction have provided opportunity for the Bank to grow continuously in the past. In order to increase its efficiency in service delivery process RBB felt the need of training in various fields for its employees. The Training Center of RBB was established in 2048 BS realizing this fact. The Training Center was transformed into Training and Development Department in 2002 when the new management team had undertaken the charge ship of RBB. Presently the organization structure as shown in figure -2 is arranged for its functional work.

It is learnt that the Training and Development Department of RBB has focused its activities to enhance the knowledge and skill of its employee. The Training and Development Department of RBB has also been conducting training/seminars/workshops in coordination with different RBB departments in order to increase performance and productivity of RBB employees. To meet these objectives the Training and Development Department concentrates its efforts mainly to the following areas:

Identification of the areas of skill enhancement.Identification of the training needs.

Co-ordination with different RBB departments to increase efficiency and skill required for them.

Development of human resource inventory and succession plan.

Activities of Training and Development Department of RBB

Implementation of plans in the field of Human Resource DevelopmentAssessment and Survey of Training needs for the Bank.

Design of Training Courses.

Evaluation improvement and follow up the training program.

Improving training facilities and infrastructures.

Arranging employees to participate in different internal and external training.

In view of above objectives the Training and Development Department initiates a file to the Human Resource Manager for the nomination of employees to participate in local/ national/international training and seminars.

Existing organization structure of the Training and Development Department of RBB has been developed with current staff number of 6. Looking at tiny number of staffs it can say that RBB has to pay attention for expanding the Training and Development Department during its restructuring process. For this RBB has to increase its annual budget for training works in future as far as it represents only a fraction of the total RBB annual budget. The generation of staff motivation can be achieved by enhanced training with increased budget. The following table shows the training provided and budget expenses for various Fiscal Years.

Training Conducted and Budget Expenses of RBB

Table - 5 (RBB Training)

Fiscal Year 061/062

S.N. Training Title Number of

program

Number of participants Duration Training expenses for

the yearOfficer Non

officerTotal

1 Mgt. Development 1 28 

28 2 weeks 

2 NRB compliance 2 

40 40 1 week 

3 Budget Preparation

2 15 30 45 1 week 

4 Consumer Loan 1 7 10 17 1 week 

5 Audit manual 1 9 24 33 1 week 

Total 7 59 104 163 6 weeks 10,16,000.00

The table shows the ratio of officer and non officer is 1:2, the total duration of the training program was 8 weeks. The cost per participants comes to be around Rs. 6200.00. The training program such as has been repeated several times, as per their importance and relevancy.

Table - 6 (RBB Training)

Fiscal Year 062/063

S.N. Training Title Number of

program

Number of participants Duration Training expenses for

the yearOfficer Non

officerTotal

1 Customer Service 3 

102 102 1 week 

2 Remittance Business

1 

29 29 1 week 

3 Account manual 2 19 41 60 1 week 

4 Pumori III op. syst.

8 65 283 348 1 week 

5 Credit Mgt. 2 58 

58 2 weeks 

6 Marketing Mgt. 1 10 20 30 1 week 

7 Mgt. Development 1 25 

25 1 week 

Total 18 177 475 652 8 weeks 35,40,000.00

The table shows the ratio of officer and non officer is 1:3, the total duration of the training program was 20 weeks. The cost per participants comes to be around Rs. 5400.00. The training program such as has been repeated several times, as per their importance and relevancy.

 

Table-7 (RBB Training)

Fiscal Year 063/064

S.N. Training Title Number of

program

Number of participants Duration Training expenses for

the yearOfficer Non

officerTotal

1 Anti money Laundering

2 20 36 56 1 week 

2 Computer Prog 8 44 223 267 1 week 

3 Assets/liability Mgt.

1 20 10 30 1 week 

4 Customer Service 10 

317 317 1 week 

5 Credit Mgt. 2 63 

63 2 weeks 

6 Foreign Remittance

1 26 10 36 1 week 

7 Loan module 1 10 24 34 1 week 

Total 25 183 620 803 8 weeks 38,70,000.00

The table shows the ratio of officer and non officer is 1:3, the total duration of the training program was 27 weeks. The cost per participants comes to be around Rs. 4800.00. The training program such as has been repeated several times, as per their importance and relevancy.

Training Activities

In order to increase the effectiveness of service delivery of RBB, the Training and Development Department has concentrated its focus more on needs for changing its employees to perform their duties in customer friendly atmosphere. To achieve this the Training Department has divided its objectives mainly in two parts.

 a) Long-term Program

The Department has a target of participation of RBB employee at least in one training program within 5 years.

b) Short-term Program

b.1) Core-program

The program prepared after carrying study according to the need of RBB falls under this category. Six types of core programs had been conducted and 519 employees were benefited from this type of training program.

b.2) Departmentally Designed Affiliated Program

This training programs prepared by other departments as per their own needs are scrutinized by the Training Department and with modification after advice and recommendations such training could conduct. The details pertaining to this are enclosed herewith.

b.3) Specific Training Program

The training address particularly one subject has usually been organized with the help of outsourcing resource personnel. The outsource trainers could be expatriated from abroad. General practice is that such training is arranged once in a year.

b.4) Training Outsourcing

The selection of RBB employees as trainees in the training organized by the training institutions, organizations and academic center falls under this category. The target of providing 100 staffs of different levels in country and 25 outside the country is set for FY 2062/063.

Development Activities

RBB has provided opportunity for enthusiastic and proper employees to acquire higher education e.g. EMBA. Qualification and skill can be enhanced by acquiring such degree by the employees. RBB can also be benefited from this.

CHAPTR II

DATA PRESENTATION AND ANALYSIS

2.1 SWOT Analysis of the Training Program of RBB

As one of many good techniques that help for environmental scanning of an organization more smoothly this techniques has been applied to forecast the future plan of actions that need to be undertaken by the Training and Development Department of RBB. SWOT analysis is prepared and presented as shown in Table 8 below.

Table -8

SWOT Analysis of the Training Program of RBB

S.N. Strength Weakness Opportunity Threat

1 An autonomous Department at central level.

Excessive dependence on outsourcing trainers.

Quick access from the top management in decision making and problem solving.

Frequent encroachment by seniors of other departments including human resource department even in small affairs of routine nature.

2 Separate entity with its own budget for organizing various training program.

Great dependence on functional department in identifying training needs and design.

Greater potentiality of using in-house trainers' skills and seniors experience in training need identification and design of training.

Inter-department vested interest obstructs in fixing priority of training type.

3 Sufficient area with the possibility of

No budget allocation so far for the construction of

Bank owned land at importance place can

The training center could be displaced if the revenue from

future expansion of training facility.

buildings and other infrastructure facilities.

generate income by modernizing the Branch of Bank and other shopping Complex including physical facilities of the training center

other sectors e.g. profit from baking and shopping rent are attractive.

4. Few members with cultural harmony working in the Training Center.

Difficulty in interdepartmental job rotation due to few members.

Cohesion in work, better control over subordinates activities.

Staff turnover can be a crisis for the training center.

5 Cooperative team members having positive attitude towards problem solving.

Can not engage all time due to work overload.

Enthusiastic and cooperative behavior expressed by team staffs lead to positive impacts to the trainees.

The work environment can be vulnerable in unexpected situation where command and control need significant role.

6 Can focus more on in-house needs.

No initiation for expanding its capacity and no role model play as training center for all commercial banks.

Possibility of developing special training program more effectively.

Activities confine in limited areas. Neutral credibility exposed to outside organization.

 

7 Findings of training can be applied in more flexible ways

Virtually no program for on the job training.

Findings of training can be kept in reserve for the future

Difficulty in linking the skills and tips in the job performance for

application. below average staffs.

8 Training enhances ability in performance more efficiently.

Non integration of majority training program with carrier development (opportunity)

Additional skills can gain by the training.

Absence of (low level) motivating factors that can affect majority of average staffs.

9 In-house trainers can better explore the training needs for the organization (RBB)

Low opportunity for in-house trainers to expose outside the organization.

Concentration in in-house training works makes easier in training design.

Can difficulty in getting external feedback regarding content, usefulness and skill of the training.

10 Independent work with more focus on in-house needs.

No affiliation with other training centers to match with the speed of the outside world.

Opportunity for in-depth study of in-house training needs.

Lack of knowledge about other training centers' performance and lack of opportunity to adopt positive thins from other institutions.

 

2.2 Study and Analysis of the Training Program of RBB, TDD

Introduction

This report is a special study based on Field Visit and Respondent visit, discussion with supervisors and review of relevant documents. The purpose of this study is to assess the effectiveness of training provided by "Training and Development Department of Rastriya Banijya Bank".

A special assignment is related with the review of training program titled "Credit Training: Corporate Account Management Program" organized by Rastriya Banijya Bank (RBB) for a group of its thirty employees.

Statement of the Problem

Rastriya Banijya Bank has separate Training and Development Department which design and conducts in-house training programs for its employees on various aspects of core banking operation and management and organize the training program on different functional areas of bank operation by coordinating with the concerned departments. Although many programs are conducted, the effectiveness of such program is not often assessed. In view of the time and resources employed in theses training programs a study of their effectiveness in terms of enhancement of employee's performance to acceptable level so that they are able to solve the problems and increase the productivity of the organization is very essential. Further, the employee's positive change in attitude toward the organization and their acquisition of knowledge and skill during the training will benefit both the employees and organization. On the other hand if the program is not effective there will be mere wastage of resources including the precious time of all.

Therefore evaluating of the effectiveness of training program has become a necessity and a challenge.

 

Objective of the Study

This special assignment within the field study of Rastriya Banijya Bank, Central Office, Training and Development Department is aimed at evaluation of a specific training program called Credit Training Corporate Account Management in terms of its effectiveness in providing the tangible benefits as envisioned in its objective.

Scope of the Study

The specific assignment is being chosen on the basis of special functionality of the program (concentration on credit training), the number of available participants and concerned authorities for interview, short period of time past since the program concluded.

Limitation of the Study

The study is limited at collecting opinion from the sample of participants and supervisors and actual measurement of work performance was not feasible in the absence of such indictors to measure against.The time constraint under which the study is made is the limitation of the study as the coverage of study has been confined by the time availability.

The availability of information itself is another constraint under which the study is made.

Methodology of the Study

The means applied for obtaining information for analysis is basically the structured questionnaire to the participants and unstructured personal interview with them and the concerned authorities of credit department and the supervisors of the training participants and the analysis of the information so obtained. The opinion of the supervisors in structured questionnaire in limited number is also obtained to seek their view on the relevance of training program and the effectiveness of training in terms of participant's post training performance.

Organization of the Study of Credit Training

(A) Introduction of the Study

a. Brief introduction of Subject b. Objective of the Training Evaluation Study c. Problem statement

(B) Report on the Effectiveness of the Credit Training

a) Facts and Figures

b) Data Presentation

c) Interpretation

d) Findings

(C) Conclusion and Recommendation of the Effectiveness Analysis

2.3 Effectiveness of Credit Training Conducted By Rastriya Banijya Bank, TDD

General Introduction of the Study

Brief introduction of Subject

A training course titled Credit Training Corporate Account Management was conducted from 5th Dec. to 15th Dec. 20, 2005 for the RBB employees. The participants were heterogeneous group of 30 employees occupying the position ranging from 5th level (Senior Assistant) to 9th level (Chief Officer) and some were nominated from the Credit Department of Central Office and others were from the main branch and other branches.

The training program was residential type training, first of its kind ever conducted by RBB to its employees. Nearly NRS 800 Thousand was spent in running this training program alone.

A consultant trainer was hired for conducting training program. The design of the program was based on the training package development by consultant (Indian National) which was redesigned and modified to make it suitable with Nepali Context. From the starting, when the training need was identified, the Credit Department was actively involved in arranging the program.

Objective of the Training Effectiveness Study

The main objective of the course as described by the high ranking official from the Credit Department was to enhance the analytical skill of the employees of RBB in credit analysis and credit management process at par with international standard and international practice adopted in reputed banking entities in Nepal and other countries so that RBB could move from traditional mortgaged based lending to cash flow based lending. The objective was set forth after the analysis of the bank's credit portfolio and accumulation of huge non performing loans (NPL) due to the traditional approach adopted in the past. It was stated during the interviews that the consultant hired was the person who in the past conducted same package to the bankers in India and to the well reputed and established banks in Nepal. Therefore, the objective was to impart the analytical skills of credit management at the highest level possible.

Problem Statement

Institutions tend to invest huge amount in training programs with the expectation of deriving the tangible benefits from such programs for the organizations. Putting it in another way the measurement of effectiveness of any training program in achieving the objective set is very vital, so that, the value of the training program can be ascertained and further modification, change, improvement can be made. But most often the training programs are conducted without identifying the training problem properly and training is provided to the individuals without assessing their training needs. Moreover the high profile programs are launched expending big financial resources just because the others are launching such programs.

The problem in given case was to make the post training assessment of the said training program in terms of its effectiveness and achievement of the objective and critically evaluation of the training so that the weakness of the program could be found out and appropriate recommendation could be made.

 

2.4 Report on the Effectiveness of the Credit Training 2.4.1 Facts And Figures

There were altogether thirty participant involved in the Credit Training which was a residential type of training, starting from the morning till late evening and the training required practical exercises by the participants after the training session. The reading material for the training was made available to the participants nearly one month in advance of the training schedule.

The content of training course was developed by consultant who used to impart the same training to the banks in India and Nepal but the content was redesigned by the Credit Department of RBB to suit Nepali context.

The participants of the program were selected by the Credit Department and they were heterogeneous group in terms of their academic background, their position in the organization, their service period, and their work units. But homogeneity could be found in their respective area of work. Most of them were related with credit but the majority was from the Central Office, Credit Department, while some were Branch Managers who were naturally involved in credit administration. Yet a few of them were not directly involved with credit administration but it was found that some of them were latter transferred in the tasks involving credit administration after the program. Some participants were partially and indirectly related with credit administration such as Letter of Credit and after the training too they remained in thee departments which do not require applying the credit training skills at the moment. There were some participants with technical background, for example a mechanical engineer but it was stated that the same individual was working in the Credit Department for a long time.

The training contents involved analysis and interpretation of financial statements besides appraisal of the aspects other than financial appraisal was also there in the program, the presence of pre-dominantly financial aspects required the participants' accounting knowledge or the training should be able to impart the accounting knowledge to the participants. Otherwise the training would not be as fruitful. There involved grading system of training result.

The questionnaire distributed to the 11 participants (33% of the population) showed that most respondents' knowledge level after the participation in the training was increased yet the increment was not consistent over all population. All respondents' level of knowledge was not

increased at very significant rate. But almost all of them rated that the training program has increased their level of knowledge and they were applying them in their present work situation. On the subject of methodology used in the program most respondent seemed to be satisfied. On the subject of applicability of the skills and knowledge acquired most found the training useful and a few termed it as very useful and regarding the consistency of the training content with the policy guidelines of the RBB, the rules and regulation, nearly three quarter respondents replied that it was matching, while the nearly one fourth rated it as fairly matching. Regarding the capability developed in interpreting the financial statement all responded that they are capable now. Most respondents expressed satisfaction over the type of training program regarding the logistic support, facilities provided, training environment. In the subject of overall effectiveness of the program most respondents replied that they felt the program s effective. Moreover almost all of them regarded that in their evaluation the program matched their post, qualification and experience. However, while conducting interview posing a probing questions a somewhat different result was found. A mark difference was observed between the replies of Central Office employees and branch workers. Therefore the validity and reliability of the replies could not be established easily.

A few of them explained that the session became dull at times after a few days because all session was handled by the single resource person although none of them questioned the ability of the resource person. A few respondents felt that the session could not be much interactive because of medium of language use. Majority of the respondents expressed during the interview that though the skill and knowledge gained in the training could not be used in practice presently, because of their unique position in the hierarchy, they hoped to use it later. In response to the questionnaire a supervisor, a high ranking official of Credit Department expressed his view that the training program was very much relevant in providing the awareness among the participants in international best practice in lending. On the effectiveness of the program it was expressed that actual result of the effectiveness could have increased if there were more relevant topics on Nepalese context, more resource person involved in the training to make it livelier and if homogeneous group were elected then the learning could have been derived at the maximum level. One supervisor replied on the relevance of the training that he was not in a position to reply that question as he was unknown about the content of the training program. On the effectiveness of the program it was stated that currently there was no need to be applied because of no lending at the moment in his office.

 2.4.2 Data Presentation

Table - 9

(Data indicates Nos. of participants having same answer)

S.N. Questions Type of Answer

A B C D E

1 Please specify your experience in Banking 1 2 5 

3

2 Please specify your experience in credit management 

5 2   

3 Knowledge level of subject matter prior to this training 

7 4   

4 Level of knowledge gained after the training program  

6 5   

5 Your view on training methodology and usefulness (lecture, discussion, practical, group exercise)

   9 2

 

6 Training program's applicability and usefulness in real work situation

 1 7 3

 

7 Matching of RBB's Loan Policy, Credit guidelines, rules and regulation with training contents

 2 8 1

 

8 Are your applying the skills acquired in training in present work?

11       

9 Are you capable of interpreting financial statement analysis?

11       

10 Your satisfaction with logistic support, facilities for participants, environment of training program

 1 10

   

11 Your view on course contents, effectiveness of session and presentation

   11

   

12 Your ability to handle problem loans after participation in this training

 10 1

   

13 How do you evaluate the training in terms of your post, qualification and experience?

 4 7

   

Regarding the training methodology the 82% expressed that it was satisfying and rest expressed that it was highly satisfying. However the survey of knowledge gained after the training showed that only little more than average participants expressed that they gained to some extent only.

The 64% of the sample population described that the learning from the program was applicable and 73% told that their learning matched the requirements of RBB's rules regulations and guidelines. All (100%) respondents told that they were applying the learning at the present. However one respondent in the sample was not working in credit unit. All (100%) of them expressed that they were capable of interpreting the financial statement analysis. But after the probing question in interview there were lack of consistency found in their replies. From the participants point of view the program was highly successful and they were very satisfied with the type of training program conducted but from the angle of organization the effectiveness might not be so high although the high ranking official preferred to term it as very effective. The measuring of effectiveness of the program in terms of resources involved is beyond the scope of this study but replicating the programs considered successful in other organization may not be that much successful in RBB. The motivation to learn among the employees and other factors might impact the effectiveness. The expensive ones may not always be the best ones.

2.4.3 Interpretation

The participants were unanimous and positive in their response regarding the residential type of training program, the facilities provided etc. It was expressed during the interview also. They seemed least concerned with the cot of the program and effectiveness of it in terms of cost involved.

All respondents viewed that training program was effective in imparting the skill and knowledge to the employees and however they admitted that the grades obtained by the participants were diverse, that means learning of participants were not consistent.

Involvement of heterogeneous group in the same program might have contributed to the various grading of the participants. However it showed that either the placement was not matching or the nomination of participants was not proper.

As the impact and effectiveness of this type of training program could be found out in the future because the benefits of which accrue over years and the measurement of effectiveness in terms of the money spent posed further complication in the absence of indicator against which to compare, proper selection would be the key to effectiveness of the program. For example, the involvement of many employees of various ranks from the same department could have train on the job, to the numbers of others under their supervision.

They hypothesis that everyone can be trained in every field so that he or she can become excellent in the many not be true. Therefore, in order to increase the effectiveness of the program proper selection of manpower is necessary to exploit the full potential.

2.4.4 Findings

By interpreting the facts and figures obtained during the study it is found that almost participants of the training program valued the training as very effective. The 64% of the sample respondents expressed the view that they were having only a limited knowledge

before the program. but contradicting on their expression only 55% of them replied that their knowledge level increased after attending the program. The others expressed that they gained but the level was not that high.

2.4.5 Conclusion and Recommendation on the Effectiveness of the Credit Training

The effect of any training and specially training in core banking areas can not be judged merely by the opinion collecting and analyzing techniques. The interviews with the supervisors may provide some insights regarding the post training performance of the subordinates. But the real effectiveness would be assessed only after the changed methods, procedures, applications adopted as the result of using the acquired skills and knowledge from the training began to produce the better results as desired. The real indicators of the change actually taken place can not be developed and compared or quantify easily. But in spite of the limitation of the study it is endeavored here to draw some conclusions and provide recommendation to the all concerned on the basis of judgmental and qualitative findings.

Training being the investment for the future productivity should aim at deriving the maximum outcome. The program in question sought to derive the maximum outcome as it was based on the successful package already used by others. But our study found that it was not customized as it should have been to suit the specific need of RBB. Therefore, to that extent the faulty design of the training reduced the effectiveness of the program.The participants were heterogeneous in terms of the level (position) in the organization hierarchy, experience, educational qualification and background, age group etc. Therefore their capacity of learning from the training differs for each category, besides the ability difference of each. This caused the uneven effectiveness of training, some gaining high and others gaining low from it, irrespective of same amount of input, including the time and effort of the trainer expended on each.

The heterogeneity of the participants confirmed that the training need was not properly identified as all employees of different levels might not have same training/learning need. This has contributed to the low effectiveness because some may by applying the skills learned in more amounts while the others might not find them applicable.

The monotony due to the single resource person handling all session and lack of interactive process for some participants due to medium of language used has reduced the effectiveness of program to some extent.

Almost all participants termed the program as effective irrespective of their heterogeneous characters and level of learning derived from the program.

Almost all participants liked and rated the type (residential arrangement) of training very high, a probable cause of rating the overall program effectiveness as high by participants.

2.4.6 Recommendation

It is suggested that in the future training programs the RBB should pay its attention in prior fixing desired level of effectiveness that can be achieved from the proposed training course. The lists mentioned above are only a few measures and moreover these are only qualitative ones and highly judgmental in nature involving personal judgment of the researcher based on the study conducted within a short time period.

CHAPTER III

CONCLUSIONS, RECOMMENDATIONS

AND PLAN OF ACTION

3.1 Conclusions

Studying the Training and Development Department of RBB one can draw the following conclusions. Conclusions are basically the areas of weakness where the improvement is required by implementing the proper action plan. RBB is one of the largest commercial bank operating its services at different parts of the country from Himalayan to Terai regions.

RBB has many functional departments at central level and one of them is the Training and Development Department.The TDD has been established to conduct various training as required by the departments to increase the skills of their employees. The aim is to achieve grater efficiency in service delivery and effectiveness of RBB as a whole.

Though the TDD has important role in RBB, the yearly allocation of budget for the TDD seems to be very marginal with comparison to the yearly RBB budget. This reflects that RBB has not given much importance in skill development of its employees through training.

The small family of TDD is largely dependant on out source professional trainers to conduct the training.

The TDD activities are confined towards organizing the training only for in-house RBB staffs.

Though the training is designed after consultation with the various departments, it seems that the mechanism for post training evaluation along with proper feedback from all sectors has yet to develop.

The specific study of credit training on corporate account management system has revealed many facts which can be related with other training programs of RBB. The different level of trainees with having variety of learning capacity showed the complexity in measuring the effectiveness of the training

There is an area for the existing physical facilities to improve in the future.

The TDD is operated in isolation in a sense that it has no affiliation with other academic/training institutions.

It has not seen separate research and development wing in the TDD for the continuous search of method towards improving the basic training facility and environment.

No system development yet for interlinking the majority of training with the career development.

Neutral in addressing the gender issues while designing the training courses.

Absence of role for the TDD to act as a "Gorilla" for RBB's transformation into the customer driven organization.

3.2 Recommendations

On the basis of diagnosis of conclusions the study suggests the following recommendations in order to make the TDD as a leading training center for RBB and other commercial banks.

In order to establish the TDD as a leading center, greater dependency on external resource personnel should be reduced by providing better opportunity for in-house trainers. Such opportunity for the trainers could be higher education, participation in regional and international seminars and workshop, flexibility for them to attach with different training organizations.Though the TDD acts as a separate department, it does not seem as n autonomous body of RBB. The TDD should be placed independent from the inner and inter departmental interest.

Looking at the past, yearly budget of the TDD with respect to the RBB year budget, the yearly budget seems to be increased in future to increase logistic facilities of the training and the allocation of fund for post evaluation training program.

The training center of the TDD is located in the place having high resale value of land. RBB can expand physical facilities by constructing multi-purpose building complex targeting income generation for the TDD operation.

Transparent system of selecting the candidates for the training should be set in compliance with the organizational (RBB) goals. Involvement of the TDD in the candidate selection process should be encouraged. This can result in better training outcomes.

Mechanism should be developed for the integration of training outcomes with the carrier development. The types of training should be differentiated and linked with the particular incentive including career development.

The formation of Research and Development wing in the TDD should have continuous research program in identifying the training need. Such training need could have the objective of addressing the gender issues pertaining to the RBB work environment where the characteristics of strong organization with large groups and hierarchy still outweigh.

The TDD should have concrete plan for the coordination with other leading academic/training centers working in the same field.

3.3 Plan of Action

There are many areas still existed for the development of TDD. Identification of weak area and recommendation for its rectification alone could not serve the purpose. Unless there is not effective implementation of action plan, such recommendation can not be materialized. The following table illustrates the action plan for the overall development of the TDD of RBB.

Table - 10

Proposed Action Plan For the Improvement of the Training and Development Department of Rastriya Banijya Bank

SN Action When How Responsible implementing

Body/Authority

1 Plan for Institutional Strengthening of the Training and Development Department of RBB

Within 3 years

Direct support from the Top Management. Allocation of Budge t from the Human Resource Development Department of RBB.

Members of MC, MT, DGM and DC

2 Achieve better logistic support for Training

Within 2 years

Increase Annual Budget of the Training and Development Department at least 3% of RB Budget.

Members of MT and DC of Financial Department

3 Develop motivating mechanism for effective participation in training

Within a year

Interlinking the outcomes of training with the carrier development for RBB employees

Members of MC and DC of HRD

4 Establish the Training and Development Department as a leading center for the development of corporate culture.

Within 3 years

Formulation of permanent cell under the Development Section for studying shortfall of human behavior in RBB and developing solution to mitigate the problem.

Members of MT, DCs of HRD and TDD

5 Establish the Training and Development Department as autonomous body

Within a year

Develop mechanism for separate audit report. Make provision for providing the opportunity train the personnel out side of RBB.

Members of MT and DC of TDD

6 Increase professional manpower based on number of training program

Within 2 years

Contracting out source professional trainers from the leading academic and training institutions on part time basis to conduct the training program as project.

Members of MT, DCs of HRD, FD and TDD

7 Get affiliation with the training centers at national and international level and accreditation for the training course

Within 3 years

Set up the Bench Mark for the quality assurance on course material delivery by inviting other renowned institutions.

Members of MT, DCs of HRD and TDD

8 Establish the section for consulting services in regard to the training of commercial banking sector

Within 5 years

Develop skills of the in-house trainers by providing opportunity to conduct training at other institutions

Members of MC and MR, DC of TDD