Ê


 


¬

Human Resource Development (HRD) as a function has not received much attention in most
of the organization in Nepal. However, because of the intense competition in different sectors
of business such as finance, aviation, manufacturing, the organizations in these sectors have
come to realize that one of the way to have competitive advantage is to have a pool of
dynamic employees. The growing demand for HR professionals in the country can serve as
evidence to it. In such situation it is necessary for the students of MBA to acquire knowledge
regarding existing HRD practices prevalent in the country. This would help the students, or
the future manager, to identify where the weakness lies within the organization and how these
weaknesses can be turned into strength. By assessing the status of HRD in any given
organization the students also have an opportunity to implement the theoretical principles of
HRD acquired in the class into real life situation.

This report is an outcome of endeavor carried out by the students of HRD to understand the
status HRD at Buddha Air Pvt. Ltd.


   
The major objective of carrying out this study is to get an opportunity to test our knowledge
regarding various HRD issues at Buddha Air Pvt. Ltd. The study also served the purpose of
putting the theoretical knowledge gained through lectures and seminars into real-life
situation. Since the study is designed as a case analysis, the study aimed at providing us an
opportunity to reflect on positive as well as negative aspects of various HRD practices at
Buddha Air.

In order to make this study meticulous as well as result oriented several objectives were
highlighted. These objectives are as follows:

£‘ Reviewing the HRD context of Buddha Air Pvt. Ltd emphasizing strategic
framework, key performance area, and HRD implication
c
 £‘ Assessment of the HRD function (HRD capacity, HRD climate, HR/HRD
information, HRD strategy and policy, HRD Mechanisms, HRD supportive
performance systems, HRD outcomes, Overall assessment of HRD, Staff Perception
of HRD, key HRD issues and implication)
£‘ The assessment and analysis of HRD needs of the organization
£‘ Preparation of HRD plan covering two years period for the organization

    
To ensure that the study becomes fruitful it is necessary to select the right organization as
well as the right methodology to study the selected organization. Buddha Air Pvt. Ltd was
selected with due consideration to the supportive environment to the students who undergo
any kind of study in the organization. Buddha Air was also deemed as the right organization
for the study because it was emphasizing on the development of its human resource for its
competitive advantage.

While carrying out the study data were gathered using primary sources as well as secondary
sources. The study methodology involves data generated through both internal and external
source. This information was collected using personal interview, questionnaire and various
HRD instruments.

  

Primary sources of data were used to obtain information regarding various HRD functions at
Buddha Air. Personal interview, questionnaire and HRD assessment instruments were used to
gather information pertaining to HRD capacity, HRD climate, HR/HRD information, HRD
strategy and policy, HRD Mechanisms, HRD supportive performance systems, HRD
outcomes, Overall assessment of HRD and Staff Perception of HRD.


  

Secondary sources of information such as HR policies of the organization, organizational
structure etc. was used to gather information pertaining to the strategic HRD framework of
the organization and key performance issues.

Ñ
    

In carrying out the project several limitations were encountered which are as follows:

x‘ The feedback provided by the respondents may involve elements of bias.

x‘ The validity and reliability of the data have not been tested.
x‘ Because of the company policy some information were not made available
x‘ The study was carried out in short span of time due to time constraint.


 Ê    Ê
       !
Human Resource Development (HRD) can be defined as a set of systematic and planned
activities designed by an organization to provide its members with the opportunities to learn
necessary skills to meet current and future job demands.1 For an organization to succeed, it is
necessary to have employees that are skillful as well as motivated. Considering the growing
competition in the business arena, organizations have started to focus on HRD as a strategic
tool.

One of the common errors that are likely to occur is that people often connote HRD to
training and development only.HRD is a system that encompasses the four major activities:
Need Assessment, Design, Implementation and Evaluation.

Figure 1: HRD System Model

  "  
HRD need is the discrepancy or gap between what an organization expects to happen and
what actually occurs. For instance, a professor may be expected to increase students¶
participation in the class. But the Dean of the university receives information that the

c 

 
 Ñ
 
 
      
D
professor uses too many slides and does not provide enough opportunity for the students to
participate. This gap or discrepancy can give rise to HRD need.

Once the HRD needs are identified, it is necessary to find out the mechanisms to eliminate or
reduce such gaps or discrepancies. These mechanisms or tools to eliminate or reduce gaps or
discrepancies in performance of employees or any individual are known as HRD
intervention.

! 
Once the HRD needs are identified, it is necessary to develop programs eliminate or reduce
such gaps or discrepancies. These programs that aim to eliminate or reduce gaps or
discrepancies in performance of organization or any individual are known as HRD
intervention. While designing HRD intervention program it is necessary to carryout the
following activities
x‘ Selecting the specific objectives of the program
x‘ Developing an appropriate lesson for the program
x‘ Developing or acquiring the appropriate materials for the trainees to use
x‘ Determine who will deliver the program
x‘ Select the most appropriate method or methods to conduct the program
x‘ Scheduling the program

„   
After the HRD intervention programs are identified the programs should be implemented.
The program or intervention must be delivered or implemented, using the most appropriate
means or methods as determined in the design phase. While implementing HRD programs
numerous challenges such as executing the program as planned, creating an environment that
enhances learning, and resolving problems that may arise.

#  
Evaluation is the final phase in the HRD process. In this phase the effectiveness of HRD
intervention or programs is measured. Careful evaluation provides information on
participants¶ reaction to the program, how much did they learn, whether they transfer learning
in the work environment, and whether the intervention or programs improved the
organization¶s effectiveness.

 Ê   $ ¬  „
  ¬ "

Buddha Air is Domestic flight operation Private Company which started from October 1997.
The Chairperson of a company is Mr.Surendra Bahadur Basnet and the Managing Director of
a company is Mr. Birendra Bahadur Basnet. There are altogether 508 staffs at Buddha Air.
Buddha Air possess nine aircraft exists of which five are 1900Ds; two are of number 1900Cs
and two ATR-42. Buddha Air is the leading domestic air liner with the combination of
dedicated staff members and state of the art aircrafts. Buddha Air Business operation covers
areas like Kathmandu, Bhadrapur, Bhairahawa, Bharatpur, Biratnagar, Dhangadi, Janakpur,
Nepalgunj, Simara and Pokhara. Buddha Air also caters to Mountain flight and Charter flight.

o
Buddha Air will be very efficient domestic carrier that would have the best aircraft and
quality standards unheard of in the domestic sector. It will provide the highest level of service
to its costumer. It will be a name people will trust.


Buddha Air has a mission of becoming the domestic market leader in air transportation. This
will be attained by:

x‘ Setting industry standards for safety and security

x‘ Providing world class customer service
x‘ Creating an open and participatory work environment which seeks positive changes,
rewards, innovation and provides growth, security and opportunity to all employees.
x‘ Providing consistently superior financial returns for shareholders.

Ê 


Buddha Air has incorporated numerous corporate objectives to achieve its mission and
vision. The corporate objectives of Buddha Air are as follows:

x‘ To maintain the position of market leader

x‘ To always have an average of 90 percent on time take off of all the scheduled flights.

Ê     
x‘ Route innovation and diversification

å
 x‘ Fleet expansion
x‘ Customer oriented service
x‘ Aggressive marketing
x‘ Market Expansion
x‘ Limited staff growth

 %   
  ¬ "

Ê    #   ¬ " & 

The employees at Buddha Air are divided into five major bands: Executive, managerial,
officer, supporting and attendant. The corporate employees, technical employees as well as
flight crews are divided in each of these five bands.

#'
 ¬ 
Category Corporate Technical Flight Crew Grade
E2 Sr. Executive manager Chief Engineer Chief Pilot 12
E1 Executive manager Dy. Chief Engineer Dy. Chief Pilot 11

     ¬ 
Category Corporate Technical Flight Crew Grade
M3 Sr. Manager Superintendent Sr. Captain 10
Engineer
M2 Manager AME-I Captain 9
M1 Asst. Manager AME-II Jr. Captain 8


 ¬ 
Category Corporate Technical Flight Crew Grade
O2 Sr. Officer/ Office Charge Hand/ Sr. Co-Pilot 7
Secretary Technical officer
O1 Officer/ Jr. Secretary Sr. Technician Co-Pilot 6

 ¬ 
Category Corporate Technical Flight Crew Grade
S2 Jr. Officer/Mechanic Technician Sr. Airhostess/ Tr. 5
Co pilot
S1 Officer Assistant/ Jr. Technician/ Tr. Air hostess/Jr. Air 4
Mechanical Assistant Technician Hostess

"   ¬ 
Category Corporate Technical Grade
A3 Senior: Guard/Driver/Loader/Peon/Cleaner Sr. Helper 3
A2 Guard/Driver/Loader/Peon/Cleaner Helper 2
A1 Junior: Guard/Driver/Loader/Peon/Cleaner Jr. Helper 1


 Ê


 


Buddha Air has been in operation since 1997. Ever since then it has been able to make huge
impact in the market. To compete in the dynamic market Buddha Air has emphasized on
Human Resource Development as well. The HRD activities carried out at Buddha Air can be
identified as follows:

x‘ Ê  
The minimum wage paid to the employees at Buddha Air is about Rs. 7000 which is
quite higher than the minimum wage set by the government. This minimum wage is
also attractive compared to the wages paid in other sectors. Besides the basic pay
Buddha Air also provides bonuses and other allowance to motivate the employees.
x‘ ÿ Ê
The work environment of Buddha Air can be described as healthy. Its main office at
Jawlakhel has spacious rooms with cubicles for employees. The proper working
condition has contributed to lower stress among the employees
x‘     
Buddha Air has a separate HR department which includes five staffs. HR manager is
supported by four staffs that help to formulate various HRD strategies. The employees
of Buddha Air reach the top position through gradual succession which has provided
the HR manager certain level of expertise to assess the training and development
needs of employees at lower level as well as senior level. HR manager is encouraged
to develop his skills through participating in training and educational programs such
as EMBA course.
x‘  
Buddha Air provides training to its staff at all levels. The pilots are provided training
annually. Air-hostesses are also provided in-house training to better deal with the
customers. The lower level staffs are also provided RAMP training.
x‘   
"    
Buddha Air has a systematic performance appraisal system developed by external
experts. The feedback of performance appraisal is provided to the employees. Regular
update of the performance of employees at different departments is provided to HR
managers to make decisions on HRD issues.
ü
 x‘ X #
 
The employees are encouraged to take more responsibility and use innovative
approach to carryout their responsibilities.
x‘ Ê    
Though there is no fully developed career plan program, Buddha Air has a mechanism
for the employees to grow professionally in the area of employee¶s interest.
x‘ Ê

There is high degree of personal communication at Buddha Air. Notice boards,
memos and other means of communication are also used for inter departmental as
well as for intra departmental communication.
x‘ #   
The employees at Buddha Air are given ample of opportunity to participate in
decision making.
x‘   
The trainability of employees is tested at Buddha Air before sending anyone for
training. Though there is no professional evaluation program to assess trainability, the
performance and competency of the employee is assessed to determine whether the
employee is fit for the training or not.
x‘ „    
 
Recently a trade union has been formed at Buddha Air. Management has been very
much favorable to these trade unions. HR department at Buddha Air has also made
plans to include union while making training and development plans.

#   "   ¬ "

#'   " 
In order to assess the HRD context of Buddha Air PESTEL analysis was carried out to
identify the major forces affecting Buddha Air.

## "   ¬ "

PESTLE analysis is a tool used for understanding the working environment of the
organization. It describes, analyzes and helps identifying the existing problems and act

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proactively to overcome any hitch. PEST analysis deals with political, economical, social and
technological

So, in this part we have tried to analyze the working environment of Buddha Air and how it
could help them prepare for the hurdles that could be seen in the years ahead.


 "
 Considering the changing political environment of the country and its
instability it can pose both threat and create an opportunity to Buddha Air. The opportunity
this instability could create would be the increased sales for Buddha Air due to continued
strikes that are certain due to the resignation of UCPN- Maoist. The newly formed
government under CPN-UML has shown some positive sings in the economy such as
increase in the Nepse Index. This could induce the private sector investors such as Buddha
Air for more investment. The election of coalition government in India is also likely to be
supportive to the newly elected government of Nepal.

#

 "
 Not considering the economy of the country, the economic condition of
the people of Republic of Nepal is significantly increasing. Due to increased investment in
banking and financial sector, it would help Buddha Air meet its capital requirement through
loan facilities. Though there is increase in the economic condition of people from low class to
middle class, people in the remote countries are yet to improve themselves and their locality.
Due to the underdeveloped roads and transportation system airways is the only means of
transportation which supports the high sales of Buddha Air. The increasing number of people
opting for foreign job also provides opportunity for Buddha Air.


  "
 The number of middle class families is increasing gradually. The education
system and literacy rate has significant improvement till date. This increase in the education
system has provided Buddha Air with qualified human resource and can meet the
requirements of an international standard airport through the knowledge base it owns. The
increasing rate of migration to Kathmandu of people from rural areas also has increased the
customer base of the employees.



 "
 In the past decade or so Nepal has experienced high level of
technological changes. The use of computer and internet and used excessively. The change in
the technological environment has also made impact on Buddha Air. The availability of
various software providers has also provided opportunity for Buddha Air. Since aviation

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The given figure for Strategic HRD helps HRD managers to focus on the organizational and
external context of HRD. In order to create a strategic HRD it is necessary to align HRD with
the organization¶s vision, mission and strategy.

„   
 !   
 ¬ "(

By analyzing the present business environment of Buddha Air with the mission, goals and
objectives we can see that Buddha Air has tried to emphasize on strategic management. It has
made strategies to create a fit between the elements of external environment with the
organization¶s policies and strategies. For instance, the strategy of fleet expansion fits well
with the external environment given the rise in the number of people who travel through air
and the political unrest prevalent in the country.

However, the HRD activities carried out at Buddha Air are of regular nature. The HRD
policies and strategies do not have a major impact on corporate strategies as they are not
properly aligned with the business needs of the organization. Lack of expertise within the
organization on HRD is also another impediment for strategic HRD taking place at Buddha
Air

)    
„   ¬ "    


Buddha Air has now established itself as the market leader in the aviation sector. The
company has been operating successfully and has been able to meet its goals and objectives.
In order to further intensify its market leadership Buddha Air needs to focus on numerous
strategies along with key performance issues.

The key performance issues faced by HR department of Buddha Air are as follows:

x‘ Buddha Air has a relatively young workforce. Most of the work force is in the range
of 25 to 35 years of age.
x‘ The growing tendency among young employees to go abroad for better prospects has
also been a performance issue at Buddha Air. Though there is minimal turnover
amounting to about 1% of the total workforce, it should also be seen as an issue as it
causes loss of expertise and skill in the organization.
x‘ Buddha Air has recently made some ambitious moves such as expansion of fleet of
planes. It has recently added two new planes and plan to add more planes is also in the
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 pipe line. Thus Buddha Air needs more dedicated flying crew members as well as
technicians and engineers.
x‘ The problem of brain drainage has also reduced the ability of Buddha Air to attract
high quality applicants.
x‘ Training and development in the organization is not aligned with the feedback
obtained from performance appraisal.
x‘ There is lack of systematic HRD planning in the organization. The training is given
on regular basis as a routine.
x‘ Though training and development opportunities are provided by the organization,
there is no mechanism to measure the effectiveness of such HRD intervention.
x‘ Buddha Air lacks proper succession planning. Because of this reason if any key
employee leaves the organization there is high probability that the organization will
have difficult time in finding the right candidate for key positions.
x‘ The organization¶s climate is relatively favorable for HRD but due to lack of expertise
available in the organization, the organization has not been able to reap the benefit of
it.

 ! „


x‘ HR department of Buddha Air has to work with the each of these staffs and formulate
strategies to galvanize these young talents into core competency of the organization. It
also needs to develop career plans for these employees.
x‘ Buddha Air has to identify the root cause for the turnover and formulate HRD
strategies in order to retain key employees.
x‘ HRD should also develop its employees from the root level so that it can have a pool
of qualified candidates when some candidates leave the organization. In order to have
qualified people in key positions it is necessary for the organization to have a
systematic succession planning.
x‘ In order to support the ambitious expansion strategy of the company HRD should play
a major role. The employees should be trained and developed to work under pressure;
they should be willing to bear more work load. HRD strategy should be properly
aligned with the expansion strategy of the organization to create a best fit so that the
expansion strategy provides better result to the organization.
x‘ HRD programs should not be given on random basis or as a part of formality.
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x‘ HR staffs at Buddha Air lack expertise regarding HRD. Thus in order to develop the
status of HRD in Buddha Air it is necessary to develop the skills and expertise of
existing HR staffs.
x‘ The performance appraisal should be properly aligned with HRD programs to ensure
that the right development opportunities are provided to the employees.
x‘ HR staffs at Buddha Air should reap the benefit of favorable climate prevailing in the
organization and make necessary policies and decisions.

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 Ê   * "     ! 


HRD functions of an organization need to be assessed from numerous dimensions to get a

clear picture about the HRD status of the organization. Status of HRD can be assessed in
numerous dimensions such as HRD capacity, HRD climate, HRD information, HRD
Mechanisms and methods, HRD supportive performance system and HRD outcomes.

 !


HRD capacity of an organization can be assessed in terms of resources and abilities it has to
carryout various HRD programs. Some of the major components of HRD capabilities are
HRD structure and positioning, HRD staffs, HRD budget, HRD facilities and resources (non
human) and HRD program planning and delivery capability. HRD capacity of Buddha Air
Pvt. Ltd can be interpreted as follows:

HRD capacity of Buddha Air is quite satisfactory. Though Buddha Air has been in the
business for a decade or so, it has been emphasizing on HRD and given enough attention to
develop its HRD capacity. At Buddha Air HRD is seen as a major responsibility of human
resource or personnel department. The responsibility of HRD is given to HR Manager and
other employees who work in the same department. There are 5 people working in HR
department. Though the company has 5 staffs for HRD, these staffs have limited experience
related to training and development. These staffs also have to carryout other activities such as
grievance handling, employee record keeping, pay determination etc. Because of the limited
expertise of the HR staff external trainers are often called in for technical training for pilots
and other engineers.

Budget is allocated annually for HRD. Budget is allocated as per the expected number of
training programs and the number of participants. The budget for HRD is reviewed annually
and adjusted if possible. Buddha Air has the necessary physical facilities and resources for
HRD and these facilities are used productively to achieve the HRD goals of the
organization.HRD people in the organization have expertise and experience in planning and
delivering a variety of HRD programs. HR staffs at Buddha Air frequently use their
competencies. However when major training and development programs are to be launched,
some external support is sought for.

cå
 ! Ê 
For the organization to be dynamic it is necessary to ensure that there is enough opportunity
for the employees in the organization to develop. While continuously preparing the
employees to meet the challenges, the organization should make conducive environment. An
optimal level of ³Human Resource Development Climate´ is essential for facilitating HRD.
General status of HRD climate in the organization can be assessed by analyzing importance
of HR and HRD in the organization, leadership style and managerial systems, and
organizational processes and practices. The HRD climate at Buddha Air can be interpreted as
follows:

One of the strategies adopted by Buddha Air to compete in the competitive market is to treat
its employees as valuable resources. There is firm commitment and support for training and
development from the MD of the organization. Because of high value given to training and
development Buddha Air has planned to create a separate training and development division
within HR department. Buddha Air follows participative management approach where leader
involves the team members in making decisions and gives some freedom for performance.
Buddha Air encourages the employees to take initiative and experimentation in certain
department such as sales, marketing and finance. However, due to the seriousness of safety
concern in aviation sector there are strict rules and regulation in other departments.

 ! „ 
Information about the human resource available in an organization is crucial to determine
human resource needs. The information can also be used to determine whether organization
has enough human resource skills and abilities to achieve its goals and objectives. The
information about HR can be used for the purpose of formulating HRD plans and policies.
The status of HRD information can be assessed through the analyzing the human resource
database in the organization, identifying whether HR data are utilized in preparing HRD and
assessing whether the organization keeps HRD information records or not.

Buddha Air emphasizes on effective and efficient data maintenance of employees. The
company uses separate software to maintain Human Resource Database. A well designed,
comprehensive and computerized human resource information system is in place. The data in
the data base are regularly updated. HR staffs at Buddha Air use the data in the database for
formulating HRD policies, planning and programming decisions. For instance, decisions

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regarding how many pilots should be sent for training this year are identified through the use
of HR database. Because of the high capacity of the software, the data or information from
database is actively used for HRD decisions

 !     

HRD strategies and policies are important in any organization and it has to be in line with the
broad strategic policies of the organization. It shows how broadly the HRD policies are
formulated. An organization needs to be far sighted and hence long term HRD policies have
to be planned and implemented accordingly. In order to assess the status of HRD strategy and
policy at Buddha Air three major variables were identified: whether the organization
formulates HRD strategy policy, strategy and plan or not; whether there is strategic linkage of
HRD or not; and whether HRD is aligned with HRM or not.

Buddha Air does not have a comprehensive HRD policy and strategy document. HR
department makes less comprehensive HRD policies and strategies which aspects limited
aspects of HRD. While formulating HRD strategies emphasis is made on training only rather
than long term development of the employees. HRD policies and strategies aim at
development of employees. Buddha Air has HRM policies such as provision for sending
managers to EMBA program to develop the employees. There is a good linkage between
HRM and development of employees. However there is no effective system to evaluate
training. Buddha Air also develops HRD plan to respond to other immediate needs.

 ! 
    
The successful implementation of HRD involves an integrated look at HRD and efforts to use
as many HRD mechanisms as possible. These mechanisms include performance appraisal,
career planning, performance rewards, feedback and counseling, training, employee welfare
for quality work life and job rotation.

Buddha Air has a comprehensive performance appraisal package. This performance appraisal
package is used for HRD needs assessment. General policies and systems for the assessment
of employees¶ need are in place. Needs assessment are basically carried out at individual
level. HRD need assessment is carried out basically to identify the individual needs of the
employees. Initial need assessment is done considering the job description and job
specification

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At Buddha Air quarterly update of performance of the employees is provided by the
supervisors. HR staffs also assess the performance of supervisors by taking feedback from the
employees. Personal interview is also taken with the supervisors and the employees to assess
the HRD needs. Buddha Air has a clear policy and system for evaluation and feedback. The
feedback is generated quarterly as a part of HRD plan.

Buddha Air lacks professional procedure for planning, designing and implementing HRD
program. There are some procedures and norms established for planning, designing and
implementing HRD programs. Though the organization is trying to follow systematic
approach and methods for HRD plan, the professional quality is not satisfactory. The training
and development provided to employees of Buddha Air includes both in house as well as
outside to a large number of staff categories. Training is provided to airhostess, pilots,
loaders, drivers etc. The managers in the organization also take opportunity to take part in
training and development programs. The training programs are provided only after careful
plan. Buddha Air is averse to providing training just for the sake of training. There is a
judicious mix of on-site and off-site development programs.

Career planning at Buddha Air is not full-fledged. There is some awareness of the need and a
general policy for providing career planning and development supports to the employees. For
this reason employees are provided development opportunities as per their need. Buddha Air
aims to develop the career of its employees in other strategic business units which the
organization is soon going to diversify. However, till this date there are no required programs
are not developed and implemented for effective career planning within and outside the
organization.

 !    
 

At Buddha Air a systematic HRM policies are in place. A systematic performance system
was developed with the help of external expert. The positions and tasks in the organization
are clearly defined. A job classification system is in place and is used in a formal manner for
HRD functions. Training and development programs for the employees are based on job
classification and job description. Job description fully identifies competency requirement.
The development of the employees is supervised by the senior managers who are in charge of
the employees. Quarterly progress report about the performance of employees is provided to
HR Department. Once the problems are identified workshop is carried to overcome these

cü
problems. Performance appraisal also focuses on identifying performance development needs
of staff in relation to the performance, but detailed development plan is not prepared.

When a new employee is hired he/she is provided enough training and orientation to create a
best fit between the job and the employee. Rewards are also regularly provided by Buddha
Air to its employees based on both performance and competencies. For instance, if an
employee finds out major problems in the organization he/she is given instant reward or
certain reward is instantly declared. Buddha Air also uses some measures of employee
empowerment. The employees who show high level of competency and performance are
involved in decision making process of the organization. The organization also provides the
climate for the employees to use some of their enhanced capabilities after the participation in
the HRD process.

However, Buddha Air lacks proper succession planning because of which if a manager or
senior officer leaves the organization, the organization is likely to have difficulties in finding
the right candidate for the vacant post.

 !

 
HRD outcomes measure the extent to which HRD activities contribute towards the
organizational goal. HRD outcomes of Buddha Air can be assessed in the following four
major categories: employee performance capacity, qualitative change in employees,
employee performance and productivity, customer satisfaction.

Through the use of effective HRD activities Buddha Air has been able to a leader in the
aviation sector. The employees have improved their capacity related to their present jobs
along with the ability to work effectively in number of performance area. The behavior of the
employees has also changed to a certain extent resulting in improved job-related behavior.
There has been reduction in defects and lack of quality in the work.

HRD programs directed towards air-hostesses have also resulted in some improvement in the
level of satisfaction of the customers.

Ñ
 Ê   +
 %   Ê   ¬ "

In order to identify the organization climate at Buddha Air a questionnaire was used to get the
opinion regarding OCTAPACE, General Supportive Climate and HRD Mechanisms. 60
employees from various departments and ranks were asked to fill the questionnaire.

OCTAPACE is an acronym for openness, confrontation, trust, authenticity, pro-activity,

autonomy, collaboration and experimentation which are essential for institution building. The
OCTAPACE profile gives information about the organization¶s ethos in eight values.
OCTAPACE is a meaningful term indicating eight steps to create functional ethos.

   Openness refers to the degree to which an organization allows spontaneous

expression of feelings and thoughts and the sharing of these without being defensive. An
organization with high degree of openness allows its employees to express their ideas and
feeling with out asking them for strict justification.

Ê  Confrontation refers to the degree to which the organization has a favorable
environment for bringing out problems and issues into the open. The issues should be
presented with view to solving them rather than hiding them for fear of hurting or getting
hurt. It also implies deeper analysis of interpersonal problems. All this involves taking up
challenges.

  refers to the degree to which people in the organization believe one another. It
also refers to taking people at their face value and believing what they say

" It is the degree to which organization gives freedom to let people work
independently with responsibility

,
 It is the degree to which employees in the organization are encouraged to take
the initiative and risks.

" 
 It is the tendency on the part of people to do what they say.

Ê   It is to accept interdependencies, to be helpful to each other and work as

teams

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#'    Open to try out new things. Further it means using and encouraging
innovative approaches to solve problems; using feedback for improving, taking fresh look at
things and encouraging creativity.

The findings of the research carried out at Buddha Air among 60 employees from different
levels regarding the how the employees in the organization perceive HRD climate is
discussed below (See Annexure for data analysis)

   The mean score and the percentage for the openness are 3.929 and 73.22
respectively. This shows that that there is above average openness for the employees at
Buddha Air. Employees at Buddha Air believe that they are environment of ³free and frank´
communication between managers and the staffs to a certain extent which allows them to
express their ideas an opinion with out hesitation. The employees at Buddha Air were also
eager to get feedback and comments from their customers, colleagues and other. However the
openness within Buddha Air seemed to be more concentrated among the people of similar
positions and ranks. This could be one reason for getting score just above the average. There
is certain degree of hesitation in sharing every ideas and opinions.

Ê m The survey carried out shows that the climate for confrontations is just
average at Buddha Air Pvt. Ltd. For confrontation mean score is 3.756 and % is 68.898 which
shows it is in average state. The employees at Buddha Air feel that they are given the
opportunity of confront problems and face challenges. This has in fact been shown through
the employees¶ ability to cope with the competition, tackle difficult customer situation and
even deal with some difficult employees. The tendency of the employees to solve the
problems when they arrive rather than procrastinating them shows that there is climate that
encourages confrontation. However, deeper analysis of problems and lack of adequate team
work in solving sensitive issues might have hindered some of the climate for confrontation to
a certain extent.

 The research shows healthy climate of trust among the employees in the organization.
For trust mean score is 3.814 and percentage is 70.339 which means this element is above
average in the organization. Employees share the opinion that there is moral support and help
to employee and colleagues in crisis. Employees are supportive to each other in difficult
situation. Higher level of empathy shown by the top management to lower level staffs, timely
support among the employees in the organization and reduction and simplification of forms
ÑÑ
and procedures prevalent in the organization show that there is healthy environment of trust
in the organization. However, there is certain degree of lack of trust while dealing with
personal issues and opinion which leads to employees becoming defensive at the time of
crisis.

" The perceived autonomy is average at Buddha Air. The mean score for
autonomy and percentage for autonomy is 3.431 and 60.763 respectively. Employees at
Buddha Air believe that autonomy is good for motivation and encourages employees to work
using one¶s discretion. They believe that there is climate which provides some degree of
individual and role autonomy. They believe close supervision is needed to direct employees
to make them more action oriented and a boost to taking independent action relating to their
jobs. However there still lacks a clear mechanism for effective delegation. There is also high
frequency of references made to senior people for approval of planned actions. Thus the
employees perceive that there is average level of autonomy for the employees in the
company.

,
 The employees in Buddha Air support pro-activity. The mean score and
percentage for pro-activity is 3.868 and 71.695 respectively. The employees regard that it is
important to take action in the right time. Regarding the climate of the organization in
promoting pro-activity the employees think there is pro-activity in most matters in the
organization.

" 
 The survey carried out showed that the mean score is 3.658 and percentage is
66.441% for authenticity. The employees have shown positive attitude towards the statements
which shows the need for tactfulness, smartness and even a little manipulation to get things
done. The employees also stated that they would own up for their own mistakes. There is also
average score for congruity between feelings and expressed behavior has also average score.
There is low degree of trust among employees as the employees have given low score to the
statement that people generally are what they appear to be.

Ê   For collaboration, mean score is 3.824 and percentage is 70.593. This shows
that there is high degree of collaboration in the organization. The employees in the
organization believe that they should make contribution beyond their job description. They
believe that collaborating in goal and strategy formulation leads to increased productivity.

Ñ
Because of good level of collaboration in the organization there is team help, sharing of ideas
and experience and high degree of communication in the organization

#'    The score for experimentation is somewhere near the good status. The
mean score is 3.861 and percentage is 71.525. At Buddha Air employees are encouraged to
take innovative approaches to solve problems. Rewards are also place for innovativeness.

-    
   The mean score for general supportive climate is 3.656 for
Buddha Air. Employees believe that top management gives importance to the human
resource and all employees are treated humanely. They also feel that team spirit is in place in
the organization which is already by quite a high score on the collaboration aspect. The
climate is also favorable in terms of employee being treated caringly by seniors as they
understand the mistake and do not take any strict disciplinary action such as punishing or
discouraging. The management also gets involved in making work enjoyable to the
employees considering the development of employees.

The important aspect of HRD at Buddha Air is that top management understands the
importance of human resource. Top management supports HRD not only in written form but
also through its actions and decisions. Buddha Air has supportive climate that encourages
open discussion of problems and their solution among management and employees. High
level of team spirit in the organization has created a helpful environment among the
employees. Though the environment of helpfulness and team spirit within the organization
has promoted healthy working environment in the organization, the employees have been less
pro-active regarding decision making and problem solving. One of the major reasons could
be that the helpfulness of the mangers has increased the dependency of the employees. This
has hindered personal development of employees to a certain extent. Good part of Buddha
Air regarding HRD is that top management understands the importance of human resource
and actually translates that realization into day to day to practice and HR policies

For the organization¶s success in the competitive business world, it is necessary to have
positive HRD climate and for having such a positive and encouraging HRD climate, the top
management commitment is must along with the workforce¶s team spirit. Buddha Air has a
strong foundation of the top management commitment, and hence, there is involvement of the
top level as well as middle level management in HRD efforts. Despite the senior
management¶s support, the lower level employees have dependent attitude or have high
ÑD
expectation from their seniors about self development. They expect to be looked after rather
than being proactive themselves. There was a very poor response on employees taking
initiative for self development.

 ! 
 
For the successful implementation of HRD, there is a need to have an integrated look at HRD
and its efforts to use as many HRD mechanisms as possible. These mechanisms include
performance appraisal, career planning, performance rewards, feedback and counseling,
training, employee welfare for quality work life and job rotation.
The mean score obtained from related questionnaire in HRD mechanism in the survey is
3.764 i.e. 69.11%. The highest score obtained in the related questionnaire of HRD
mechanism is in µTraining is taken seriously by employees¶. So this shows that employees in
Buddha Air take training seriously as their career development opportunity. The survey also
shows that when seniors give behavior feedback to their subordinates, subordinates
appreciate the feedback given by the seniors and they apply those feedbacks in their work
environment. There is encouraging and supportive HRD climate for the staffs that come back
from the training and hence, the transfer of training and learning takes place in the job. The
existing Personnel policies are also supports to the employee development. The survey also
shows that employees work and learn through job rotation and still needs other work-related
training for work effectiveness. Though the performance appraisal is not biased in the
perspective of employees, the incentive mechanism or the promotion decision seems to be
biased as it is scored low by the employees.

                  

 
     
     
     
 
Openness 4.28 82 3.19 72.969 3.741 68.53
Confrontation 4.12 78 3.794 69.844 3.471 61.77
Trust 4 75 3.806 70.156 3.518 62.94
Autonomy 3.22 55.5 3.594 64.844 3.247 56.18
Pro-activity 4.26 81.5 3.875 71.875 3.624 65.59
Authenticity 3.78 69.5 3.713 67.813 3.482 62.06
Collaboration 3.94 73.5 3.938 73.438 3.541 63.53
Experimentation 4.24 81 3.931 73.281 3.506 62.65
General Supportive
climate 4.08 77 3.613 65.33 3.488 3.582
HRD Mechanism 4.35 83.75 3.781 69.531 62.21 64.56

Ñ

Referring to the survey data, it can be clearly revealed that Openness is low in the middle and
top level staff and higher in the low level staffs in comparison. The data also clearly reveals
that the openness to avoid confrontation is high in case of low level staff and high for middle
and top level staff. Top and middle level staff don¶t believe what others say which is
indicated by the data analyzed whereas the level of trust in case of low level is high i.e. they
believe in what people say. Data clearly indicates that autonomy is little high in middle level
staffs followed by top level and the low level staffs; freedom to work independently without
any barriers is average in the whole organization. Proactive level of employees to take
initiative and activities to avoid risk is also high in low level in comparison to middle and top
level staff. Authenticity or doing what they are asked to do is average in whole of Buddha Air
and comparatively high in low level and similarly low in middle and top level staff. The low
level at Buddha Air is more towards trying out new things or experimenting new activities in
comparison to other top level. Thus, from the analysis of data the OCTAPACE culture is high
among low level staff.

Survey clearly indicates that career planning, training, employee welfare for quality work life
and job rotation, feedback and counseling are also high in low level staffs than the middle
and top level staffs.

   
   !
In order to assess the staff perception of HRD at Buddha Air ten employees working at
different level were asked to fill the HRD function instrument. The findings concur to a
certain extent with the claims made by HR Manager regarding the HRD functions at Buddha
Air. The staff felt that the organization¶s capacity is just about average as it does not have the
HRD staffs with necessary expertise for training and development. The employees felt that
there was good HRD climate in the organization. The employees agreed that there was
support from top management regarding training and development.

Ñå
 !       

HRD capacity 2.85
HRD climate 3.2
HRD information 3.2
HRD strategy and policy 3.08
HRD methods and mechanisms 3
HRD supportive system 3.65
HRD outcomes 2.85

The majority of employees in the organization also agreed that Buddha Air was effectively
using the information for making necessary HRD policy though some of the employee said
that nepotism and favoritism was influencing some of the HRD decisions. The employees
also stated that HRD strategies and policy were supported by the top management and the
company had some policies for training and development. However the employees stated that
there was no proper linkage between performance appraisal and training and development.
The outcome of HRD was perceived as moderate by the employees.

Ñ
 Ê

 


Need typically refers to discrepancy or gap between what an organization expects to happen
and what actually occurs. This discrepancies or gaps can become the foundation of HRD
need.
In order to assess the HRD need of Buddha Air we carried out three level of analysis:
Organizational level, task level, and personal level. Though the analysis was not carried out
through in-depth study, it helped to find out some of the HRD needs which are explained
below:

 %  .  
   

Organizational analysis helps to better understand the characteristics of the organization to
better understand the characteristics of the organization to determine where training and HRD
efforts are needed and the conditions within which they will be conducted. In order to better
identify the organization¶s HRD needs we assessed data from various sources to identify
HRD implications or needs for Buddha Air.

!  
 „    !   „


/&‘
 %  
 .
 
x‘ To become market leader - Need for higher co-operation between the
departments and function.
- Need to motivate the employees towards this goal
- Technical knowledge requirement for making online
ticket reservation
x‘ To make flights on -‘ Need to develop the employees¶ behavior on time
schedule management and punctuality.
x‘ To achieve 40% of the -‘ Need for marketing skills and
market share interpersonal/communication skills to deal
effectively with the customers.
&‘   
„ 
x‘ High number of young -‘ Need to develop organizational commitment
employees behavior
-‘ Need to provide career development opportunity to
these employees
x‘ Retirement of some key -‘ Need for managerial development for succession
employees planning
-‘ Need for learning organization where knowledge is
Ñ
 shared among all employees
$&‘   
x‘ Engineering -‘ Need for continuous learning to be regularly
updated with latest technology
x‘ Pilot -‘ Need for regular training to refresh the skills as
well as to learn new skills
x‘ Airhostess -‘ Need for interpersonal skill and stress management
D&‘
 %  Ê 
„ ' 
x‘ Increasing Grievances -‘ Need for effective handling of employee grievances
by HR manager and other supervisors
x‘ Turnover of about 1% -‘ Need to develop organization commitment behavior
x‘ Absenteeism -‘ Need to motivate the employees to regularly come
to work.
x‘ Few number of accidents -‘ Need for safety training
among junior staffs
x‘ Few complaints about the -‘ Need for rapport building with the customer, skill in
flight delay dealing with dissatisfied customers
*&‘   #'    -‘ Need for advanced training for pilots to fly higher
 %  capacity planes
+&‘ #   Ê 
x‘ Growing inflation -‘ Need for employee development to reduce the cost
of service so that customers can get the service at
lower cost
x‘ Formation of Union -‘ In order to coordinate well with the recently
established union it is necessary for the
management to emphasize participatory
management where Union can put its ideas and
opinions in decision making
x‘ Emergence of new -‘ There is need for creating innovative and dynamic
competitors workforce to have competitive edge in the
organization.

  " 
Task analysis is a systematic collection of data about a specific job or group of jobs to
determine what an employee should be taught to achieve optimal performance. The project
team members had been able to carry out the task analysis at Buddha Air, prior focus being
directed to the marketing department. During the field visit, the team members had literally
felt that the implementation and evaluation parts of the HRD programs were ineffective for
the tasks. To determine the root causes, the task level need analysis had been carried out by

Ñü
meeting with department heads, employers from HR department, Field Supervisor, and
employees themselves. As quoted by the employees, ³the tasks that they were handling can
directly affect the image of the Buddha Air. Negligence has been made by the concerned
department in uplifting the task that involves the direct contact with the customers, who are
the source of revenue generators for Buddha Air´. The task level analysis has been carried
out to determine the following information:

x‘ The mission of the marketing department

x‘ Perceived training needs of the department
x‘ Perceived effectiveness of the performance appraisal system
x‘ Promotion and reward system in the task handling
x‘ Perceived need of technology in the task handling
x‘ Efforts made and needed in staff development
x‘ Roles, responsibilities, and team coordination within the department
x‘ Proper communication channel between corporate office and the staffs at the field

From the staff survey and interviews taken, the team members were able to come across
various findings that are highlighted below:

     
  !   „


x‘ Marketing
x‘ Performance Appraisal
-‘ Marketing is one of the important tasks carried out in the
organization. For marketing it is necessary to provide
training to develop interpersonal as well as
communication skills. Marketing managers need the
knowledge regarding on how to build bran awareness,
how to monitor the brand, and so on.
-‘ The staff in the marketing department should be trained
on how to use the information technology while
providing online reservation service to the customers.
-‘ Supervisors lack the skill and ability to properly assess
the performance of the employees. Training on how
systematic performance appraisal should be done needs to
be given to supervisors.
-‘ There is no integration between performance appraisal
and training and development. HR staffs at Buddha Air
should be trained on how to integrate performance
appraisal with training and development.
-‘ The organization needs to carryout 360 degree feedback



x‘ Boarding Pass Checking
x‘ Air Port Supervision
x‘ Conflict Handling
x‘ Dealing with External -‘
Threat
x‘ Flight Safety
if proper development of employees is to be made.
Organization should develop a system for 360 degree
feedback rather than using feedback only from
supervisors.
-‘ There is a need to develop a computerized system to
check the boarding pass and the employees should be
trained for the same purpose
-‘ Air port Supervision is one of the major tasks of Buddha
Air. In order to effectively manage the airport it is
necessary to develop the skills of workers involved at
supervisors.
-‘ Quick and analytical decision making skills required in
some cases for Air port manager
-‘ Communication skills for Jr. Staffs to guide the
employees
-‘ RAMP training required for fleet cleaning staffs
-‘ There is a need for developing a grievance handling
process of employees as well as that of customers at
airport for the employees.
-‘ Training on negotiation to deal with the unions.
-‘ Conflict handling skills development to deal with the
Airport authority and other competing companies
Pilots and airhostess also need training and development
program to deal with threat of terrorist, sudden landing
and bad weather.
-‘ Since Buddha Air has prioritized customers safety as the
major concern it one of the most important task at
Buddha Air.
-‘ All the staffs should be provided basic training on flight
safety.
-‘ Rigorous training and continuous development should be
provided to engineers and flight crews to ensure flight
safety.

  " 

Person analysis is directed at determining the training needs of the individual employee. The
focus is typically on how well each employee is performing key job tasks and what key skills
are needed to uplift their performance.

c
One can understand how important the customer relation for any airline industries is. Buddha
Air is well aware of this and has been making hard efforts to maintain high degree of
customer relationship. Despite this, there are areas where Buddha Air has failed in uplifting
the employees morale employed in the field. These employees are far from the training and
development program as compared to the employees employed at the higher management
level.

Training and development programs for Pilots and Airhostesses are conducted at an interval
of 6 months. During the training and development program, they are trained to be perfect in
different activities like interpersonal skills, stress management, customer handling during
emergency, customer care on board, etc that their nature of job demands. Their needs have
been addressed by the company to large extent. Unlike pilots and airhostesses, Buddha Air is
comparatively little behind in promoting the skills of the marketing staffs that are in
continuous touch with the customers. During the company visit, the team had made hard
effort in finding out their specific needs that can help in developing their morale towards the
task. Our analysis was specifically focused on the performance appraisal systems, promotion
mechanism, discrepancies, skills and interventions needed to uplift the staff performance.

Since we did not have enough time to observe the performance of employees, the personal
needs for HRD were identified on the basis of interview with the staffs at Buddha Air.

x‘ Ê
  The employees at Buddha Air stated that communication skill
was necessary for all the employees in Buddha Air. Being a service industry interaction
was of great importance. Thus regular communication skills training needs to be provided
to the employees.
x‘ Ê     If an organization wants to sustain in the long run it is necessary to
build a strong customer relation. Thus the employees of marketing perceived that they
needed some kind of training for maintain positive relation with the customers.
x‘       Timely flight management is of great importance to have positive
impact on the image of Buddha Air. Time management skills were deemed necessary by
the employees to provide
x‘   ÿ The employees stated that there was high need for the employees of
Buddha Air to develop team spirit. Since the work involves technical as well as
managerial issues, team work is necessary to carryout the work efficiently.

Ñ
x‘       Through the interview it was found out that some of the employees at
the managerial level lacked proper managerial skills.
x‘ !
  : The need for decision making skills was also identified by the
employees to promote autonomy and pro-activity in the organization.
x‘ Ê   Given the advancement in technology, the employees of Buddha Air
stated that computer skills were required for all employees. They stated that such
provisions will make it easier for the organization to adopt to technological system as
well as various Management Information System.
x‘        Stress management has received much focus in the present days
even in Nepalese organization. The employees of Buddha Air stated that a proper training
and development opportunity has to be provided to the employees in Buddha Air for
stress management.


 Ê   0  !    ¬ "





 !"

#
$
In order to address the HRD needs at Buddha Air the following HRD plan has been prepared:

 !  HRD vision is the picture that people in the organization hold in their minds
about what kind of Human resource should be in the organization. The HRD vision for
Buddha is as follows:

1¬

   
             

   
 


 !  The mission is the articulation of vision in some concrete form which then
becomes a guideline for strategy. HRD mission for Buddha Air are as follows:

x‘ Ê 
  



  
   
x‘ ¬

              


 
  

 ! 
  The HRD objectives for Buddha Air are as follows

x‘ 
     
 
   
   



    
x‘ r   
 
         
 
x‘ u      


x‘ „   

  
 !   The HRD goals for the next two years for Buddha Air are as follows.

x‘ ü
  
 

 
 
x‘ 
  

!

 

 
 
x‘ 
  "


D
 !    

In order to carryout HRD intervention it is necessary to identify HRD output target. The HRD
output target for Buddha Air can be as follows:

 !  "  !    

1.‘ Reduction in Turnover Turnover less than 1% within 3 years

2.‘ Reduction in Unnecessary absenteeism below 0.5% of the total working

Absenteeism days after 3 years

3.‘ Safety Less than 3 cases of injuries to the employees at the

airport on annual basis

4.‘ Timely flight 100% of the flights on schedule if no disturbance is

created by weather or other elements

5.‘ Reduction in external The cost of external training would be no more than 10%
training cost of total training and development cost.

6.‘ Performance Appraisal 360 degree performance appraisal

Less than 3% grievances regarding the poor performance

appraisal capacity of supervisors

7.‘ Customer Satisfaction 99% of the customer satisfied with the service

Increase in the market share to 50%

8.‘ Reduction in the number The employees will be empowered and developed to
of growth of staff carryout even high amount of task

9.‘ Return on HRD activities ROI of HRD to be more than 100:1

10.‘Favorable relation with No conflict with employee union of the organization

employee union regarding training and development.



[
‘‘‘


 
‘ ‘‘‘
 !     

  .  
 Ê   
- !   
Incumbents Orientation x‘ To Socialize by making aware with Within In-house; HR On the job and Low
organization climate and policies, one week staff conference
their job nature, reporting hierarchy, of the plus discussion
etc office join
Interpersonal skill x‘ To improve communication and 7 days In-house; Off the job Below
training teamwork New-Era average
Top level Stress x‘ To control over oneself during at the Alliance On the job Average
management Management stressful situation middle of Nepal
the year
Managerial x‘ To identify the holes in the current At the KUSOM Off the job High
training management practices beginning
x‘ To learn the new ways of managing of the
the business processes year
Career x‘ To achieve personal career growth 7 days KUSOM Off the job Average
Management
Continuing x‘ To add value to the management by - KUSOM Off the job Very high

å
 Education giving opportunities for higher study
Developing x‘ To improve the techniques of 3 days Alliance On the job High
Performance assessing the information and inline Nepal
Evaluation skills the performance with the organization
goals and missions
Leadership x‘ The effectiveness of the controlling At the KUSOM On the job High
training mechanism used for the subordinates beginning
quality of first
quarter
Managerial x‘ To provide supporting in their works - KUSOM On the job Very high
Coaching
All Staff Refresher training x‘ To revise what had been learned After In-house Off the job Average
every six
months
Interpersonal Skill x‘ To improve communication and 3 days New-Era; in- Off the job Above
Development teamwork house average
training
Time Management x‘ To achieve the required standards for 5 days Alliance On the job Average
setting priorities, and for scheduling Nepal;
activities, to make best use of time KUSOM


 Coaching x‘ To provide supporting in their works - In-house On the job High
Counseling x‘ To promote productivity through - KUSOM On the job High
encouragement to solve the problems
Spiritual Program x‘ To improve self understanding and Beginning TM, Art of Off the job High
stress buster of the living, Ananda
year Pragya
Team Building x‘ To achieve the professional 1 day Alliance Off the job High
cohesiveness/review Nepal
Retreat x‘ To give temporary relief from work; to At the end In-house Off the job Very High
recharge staff of every
two years
RAM safety x‘ To take proactive precaution - In-house On the Job Average
training
Computer training x‘ To ease the working with Rotation In-house On the job Low
computerized business process wise, after
every 3
months
Pilot Technical Training x‘ To achieve the required level of - In-house Off the job in Very high
effectiveness and efficiency in getting simulated
the best out of computer systems and environment


 packages.
Refresher training x‘ To keep the knowledge up to date At the end In-house; Off the job Average
of every 6 simulation
months (USA)
MIS personal Certificate training x‘ To develop additional skills as per the - Prime Apprenticeship High
task demand College;
KCM; etc
Problem solving x‘ To tactfulness of solving the problem - In-house; On the job Average
faced personal on
hire
Airhostess Airhostess training x‘ To keep the knowledge up to date At the end In-house Off the job High
including role play of every
six
months
Pilots, Training on quality x‘ To improve the technical quality Once in a In-house, Off-the job High
Technicians, and management and to minimize defects. year external
Engineers through quality consultant
circle

ü
 Ê   2 „         

Implementation of HRD is one of the important components of HRD system. While

implementing the HRD plans Buddha Air has to focus on the following issues:

      !   

In any organization it is very difficult to quantify the benefit an organization gets out of HRD
programs. So it is very much essential for HR manager at Buddha Air to use various
marketing strategies to get necessary support from the top management for the
implementation of HRD programs. In order to get the necessary support HR manager needs
to focus on four major aspects of marketing mix:
x‘ Product: Training courses and learning activities
x‘ Price: Cost of the HRD program or the cost that might have to be born by the
organization due to lost productivity.
x‘ Promotion: Using various methods to sell the idea of HRD to the employees as well
as to the top management
x‘ Place: Location for HRD program
Along with the marketing, HRD managers should also use political skills to sell the idea of
HRD to the organization.

   
First of all it is necessary to determine the method of training. Training can be basically
provided using three major approaches: On the job training, class room training and self-
paced training. The determination of which method to use depends on the nature of the
training as well as the learning style of the trainee. The training methods to implement HRD
programs for Buddha Air have been provided in the five year HRD intervention plan. For
instance, coaching and counseling have been provided to employees as on the job training to
encourage the productivity of employees but some training to air hostess is provided through
role play as an off the job training.


  
HR manager should also carefully decide whether training will be provided in-house or
outside the organization. It is necessary to consider the HRD capacity of the organization.

D
#      
In the final step of development program HR manager of Buddha Air should evaluate the
effectiveness of its training program. The effectiveness of training program can be carried out through
analyzing the following factors:


Buddha Air should understand and ask the participants of HRD program whether they were satisfied
with the training or not. In order to evaluate the HRD intervention a questionnaire can be used to
obtain the reaction of the participants. Similarly the reaction of the trainee can also be obtained
through observation or interview. A sample form for evaluating the training is given below

/&    ¬
 3 ¬    !   

1 Have you received training on Coordinating/Facilitating Yes No

supplies Skills?

2 If yes, when was your last training? (yyyy/mm/dd)

3 Have you been a participant in previous training? Yes No

4 If yes, when was your last training?

    "# 
 $%#  $

3. The training was well defined and in line with the job. 1 2 3 4 5

4. Evaluation criteria were well defined. 1 2 3 4 5

„„&   ! 

    "# 
 $%#  $

1. Was the training realistic and challenging? 1 2 3 4 5

2. Were you actively engaged during the training? 1 2 3 4 5

3. Was the training time sufficient to learn all the necessary 1 2 3 4 5

skills?

4. Were institutional relationships encouraged between teams? 1 2 3 4 5

5. Please comment on overall training design.

Dc
„„„&   

    "# 
 $%#  $

1. Did the Trainer keep the team on track and moving forward? 1 2 3 4 5

2. Did the Trainer provide useful, relevant practical advice? 1 2 3 4 5

3. How often were you provided opportunity to consult with 1 2 3 4 5

Trainer if problems arose

4. Overall comments on Trainer:

„o&    ¬
 3 "    !   

    "# 
 $%#  $

1. Do you have a better understanding of:

a. Your role in organization. 1 2 3 4 5

b. Communication and Interpersonal skills. 1 2 3 4 5

c. Roles, responsibilities, and techniques in Coordinating & 1 2 3 4 5

facilitating.

2. Were your personal goals met from the training? 1 2 3 4 5

      

3. Thoroughness 1 2 3 4 5

4. New ideas gained 1 2 3 4 5

5. Helpful to self development 1 2 3 4 5

6. Clear, understandable 1 2 3 4 5

7. Quality of the training 1 2 3 4 5

8. Please comment on overall training design?

DÑ
o&
   „    

1. Please comment on the positive aspects of the training:

2. Please comment on the areas of the training and development program that need
improvement:

3. Were the case studies and reference materials useful? Yes No

4. Did they add value to the training? Yes No

5. Would you recommend this training to your peers? Yes No

6. Please comment on the case studies and reference materials:

 
The participants must have clear principles on the issues learnt through HRD intervention and
should also know how to put them into practice. HRD intervention programs become useless
and waste of time and money if the participants learn nothing. It is necessary to measure what
the trainee has learnt and retained as a part of HRD intervention.
Buddha Air can measure the learning of its trainees in different ways. Learning can be
assessed through interview, written test or any other convenient method.
An illustration of how to evaluate learning of different HRD programs is shown below:
   !     #  
 
Air hostess Role play to deal with crash Ask the air hostess to write
landing situation down the steps for dealing
with the situation
Pilot Stress Management Write a self-report on how
would you handle if you had
an irritating customer flying
the plane
Technicians Quality management Write or ask the process for
checking the technical aspect
of plane to ensure the plane
is fit to fly

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The third step in evaluating the HRD program is to see whether learning is transferred into
the job. The trainee should apply the skills and knowledge gained through HRD programs
into his/her job. Whether the trainee transfers learning into his/her job can assessed through
observing his or her work behavior, the level of motivation etc.
An illustration of how HRD can be evaluated is used is shown below:
 !   #       
Stress Management Pilots and airhostess maintain their
composure despite the hectic flight schedule
Interpersonal skill Employees immediately ask for clarification
if they do not understand anything


The final step for the evaluation of the HRD intervention programs is to see the results in the
organization. The result may be in terms of increasing sales, decreasing cost, and increase in
employee motivation. The result can also be evaluated in terms of the achievement of HRD output
target. HR of Buddha Air can evaluate HRD program results in the following manner.
 !  "  !     ÿ       

  
1.‘ Reduction in Turnover less than 1% within 3
Turnover years
2.‘ Reduction in Unnecessary absenteeism below
Absenteeism 0.5% of the total working days
after 3 years
3.‘ Safety Less than 3 cases of injuries to
the employees at the airport on
annual basis
4.‘ Timely flight 100% of the flights on schedule
if no disturbance is created by
weather or other elements
5.‘ Reduction in The cost of external training
external training would be no more than 10% of
cost total training and development
cost.
6.‘ Performance 360 degree performance
Appraisal appraisal.
Less than 3% grievances
regarding the poor performance
appraisal capacity of supervisors
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 7.‘ Customer 99% of the customer satisfied
Satisfaction with the service
Increase in the market share to
50%
8.‘ Reduction in the The employees will be
number of empowered and developed to
growth of staff carryout even high amount of
task
9.‘ Return on HRD ROI of HRD to be more than
activities 100:1
10.‘Favorable No conflict with employee union
relation with of the organization regarding
employee union training and development

The remarks or feedback obtained in each of these areas of evaluation should be used to design and
implement further HRD intervention programs if the existing HRD programs do not meet the desired
output.

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Buddha Air is a leading aviation service provider in the country. In its recent move it has
added more number of planes to its existing fleet. Buddha Air needs to understand that
acquiring technology and other physical assets cannot always provide competitive advantage
to the company, especially in this era of intense competition and globalization. When the
competition reaches maximum intensity, one way to differentiate a company from rest of the
competitors is to develop a pool of qualified manpower.

Buddha Air has a pool of young and dynamic employees. The climate of the company is also
very much favorable for implementation of various HRD programs as the employees in the
organization are very supportive of HRD programs and there is high support from the top
management as well. Given the environmental context which posses both opportunities and
threats, Buddha Air needs to carefully align its strategies to the external environment to
create a best fit. Thus, Buddha Air needs to move towards strategic HRD which is not in
practice right now.

A proper HRD need assessment mechanism needs to be developed. Need assessment should
not be limited to personal level. Need assessment has to be carried out at organizational as
well as task level. Once the needs are identified Buddha Air needs to develop proper HRD
intervention needs to be formulated that addresses the needs in the best possible manner. The
performance appraisal system available at Buddha Air should also be used as an effective
need assessment tool. The feedback obtained from the performance appraisal should also be
included as one of the valuable source of information in developing HRD intervention. That
is, performance appraisal should be properly aligned with HRD.

After the implementation of HRD intervention, Buddha Air needs to carryout evaluation to
assess how useful the HRD intervention had been to the organization. Evaluation should
focus on four major areas: reaction of the trainee, learning of the trainee, behavior of the
trainee and the overall impact of training on the organizational result.

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