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Training Issues in SMEs

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This presentation includes various training programmes run by major institutions for SMEs, training issues in SMEs and the proposed solutions.

This presentation includes various training programmes run by major institutions for SMEs, training issues in SMEs and the proposed solutions.

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Training Issues in SMEs

  1. 1. Presented By: Sumit Singh Semester III (MBA – M52) MONIRBA, University of Allahabad
  2. 2.  What is training?  Need forTraining  Advantages ofTraining  Training Programmes in India  Issues inTraining  Solutions toTraining Issues
  3. 3.  Training is the process of increasing the knowledge, skills, aptitude and abilities of an employee for doing the specific job in an efficient manner.  It ensures that your workforce will continue to develop the skills necessary for success both now and in the future.
  4. 4.  The rapid technological changes create new job opportunities.  These new jobs demand certain special skills that need to be developed in all employees through appropriate and best operating methods.
  5. 5.  Higher Performance  Lesser learning period  Uniformity of procedures  Economy of materials and equipment  Less supervision  High Morale  Participative Management
  6. 6.  Training Programmes by Central Government  Skill Development andTraining Programmes of Central Government  NationalVocationalTraining Information Service of Ministry of Labour  Training Programmes of SIDBI  Entrepreneurship Development Programme (EDP)  Small Industries Management Programme (SIMAP)  Skill-cum-Technology Upgradation Programme (STUP)
  7. 7.  Training Programmes by NSIC  NSIC provides technical support to SSIs through 'NSICTechnical Services Centres' (NTSCs) and a number of sub centres.  In addition to this access to latest information in connection with technology upgradation and its transfer is provided to SSIs through the 'TechnologyTransfer Centre' at New Delhi.
  8. 8.  VariousTraining Programmes of MSME-DIs  Entrepreneurship Skill Development Programmes (ESDP)  Business Skill Development Programmes (BSDP)  Management Development Programmes (MDP)  Industrial Motivation Campaigns (IMCs)  Vocational and EducationTraining
  9. 9.  Training Programmes by Other Institutes  National Institute of Micro, Small and Medium Enterprises (NIMSME), Hyderabad  National Institute for Entrepreneurship and Small Business Development (NIESBUD), NOIDA  Micro, Small & Medium EnterprisesTraining Institute (MSME-TI),Tiruvalla (Formerly SEPTI)  Indian Institute of Entrepreneurship (IIE), Guwahati
  10. 10.  Central FootwearTraining Centres, Chennai and Agra  Fragrance and Flavour Development Centre, Kannauj  Electronics Service &Training Centre, Ram Nagar  Institute for Design of Electrical Measuring Instruments, Mumbai (IDEMI)
  11. 11. High training cost per employee  SMEs have small number of employees and limited resources required for training as compared to large enterprises  They find it difficult to organize in-house training programs  Thus, SMEs do not take part in training programs
  12. 12. Difficulties in organizing a suitable training course  An SME worker generally carries out multiple roles and possess a broader range of skills  An external training institute generally offers standardized training courses  Its difficult for SME to find courses suitable for its capacity and resources
  13. 13. Institutional limitations of SMEs  SMEs could identify some priority training needs  But lack economies of scale and specialized staff members who could find suitable outside training institutions, negotiate with them, enter into a contract, monitor their training processes, evaluate training effectiveness, and/or handle the cumbersome administrative processes for reimbursement of their training expenses
  14. 14. Low level of SME participation in job skills development programs  Lack of specialised staff working exclusively on the planning, organization, and management of worker training  SMEs are often unaware of the Job Skills development programmes to be conducted nearby
  15. 15. Disadvantaged in launching training programs for their workers in time  SMEs are in general constrained by their capacity to adjust to changing market conditions (demand, technology, prices, etc.) due to their financial, human, and knowledge constraints
  16. 16. Reluctant to provide or finance training with their own funds  Training is an investment in human capital over a relatively long gestation period, and the returns to the investment accrue over a long period.  SMEs have limited financial and credit situation, thus, merits government assistance.
  17. 17.  Introduction of E-Learning  Advantages include:  Reduced travel costs  Training needs being met at a more appropriate time for the organization and its employees  Not having to replace employees during work hours  Faster distribution of training materials  More consistent delivery of course contents
  18. 18.  Introduction ofTrainingVouchers by the Government  Advantages include:  Make the process simpler while partly or completely financing the cost of training  Are not bound to any specific course or institution and thus provide freedom of choice  Can target a specific category of workers with training needs
  19. 19.  Equipping SMEs with Human Resource tools to modify their perception of training needs  Everything starts with a good diagnosis. If a diagnosis is offered at no cost, employers are much more likely to be interested.  Human resources and the enhancement of skills can be supported and improved by external advisory services, diagnostic tools and other practical instruments.
  20. 20.  ‘Flexibility coaches’, ‘skills brokers’, mediators and facilitators can also have a positive influence on the long-term goals of SMEs regarding training.  Such functions can also be organised internally, for instance by an employee who is entrusted with the role of identifying the need for training and skills development in the company and who can make suggestions for applicable solutions.
  21. 21.  Resource and Knowledge Pooling  Establishment of SME networks and clusters  Initiatives and tools to inform SME managers, entrepreneurs and workers about existing opportunities, thereby also raising the awareness of training opportunities.

Hinweis der Redaktion

  • training helps to improve the quantity and quality of work output, increase knowledge, skills, productivity of both employees and an organisation as a whole.
     it helps to reduce the learning time and cost required to reach the acceptable level of performance. The employees need not waste time in learning through trial or error or by observing others.
    through it, the best available methods of performing the work can be standardised and taught to all employees, which helps to improve the quality of performance.
     it helps trained employees to make better and economical use of materials and equipment, thus wastage will be low.
    it reduces the need for detailed and constant supervision of workers by making them self-reliant in their work as they know what to do and how to do it.
    it helps to improve the employees' job satisfaction, morale, developing in them positive attitude, making them more cooperative and loyal to the organisation. With improvement in industrial discipline and relations, rates of absenteeism and labour turnover are reduced.
    it facilitates delegation and decentralisation of authority. Trained employees are willing to accept new and challenging assignments.
  • Computer Application, Computer Hardware Maintenance, DTP, Motor Winding, CNC Operation and Programming, Mobile Handset Repairing, Computer Accounting, Food processing, Embroidery, Fashion Designing, Jewellery Designing, Soft Toys, Air Conditioning and Refrigeration, Consumer Chemical Products, etc.
    Product/ process design, Manufacturing Process involved
    Testing, Selection & usage of appropriate machinery and equipment, Marketing avenues/ techniques, Product / service pricing, Export opportunities, Cash flow, Preparation of project profiles, Quality management Standard, Quality Management Tools, Creativity, Value Engineering and Value analysis, Industrial Design
    Patenting, scheme for TIFAC for energy new design
    Management of Small Enterprises, Retail Management, Computer Management, Export Procedure and Documentation, Financial Management and Accounting, E-marketing, Sales Promotion and Marketing, Quality Management, Human Resource Management, Web Security Management, etc.
    Courses in Tools Engineering, Skill Enhancement Courses for Industry Personnel, Customised training programmes for industries

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