(II) CONSULTANCY SERVICES: Definition: The service provided by an independent and qualified person or persons in identifying and investigating

problems concerned with policy, organisation, procedures and methods; recommending appropriate action and helping to implement these recommendations. Some particular features of management consulting needs to be emphasized at the outset. First, consulting is an independent service. This is characterized by the detachment of the consultant, which is a major feature of his role. But this independence means at the same time that enter into a very complex relationship with their client organizations and the people working within them. The consultant has no direct authority to decide on changes and implement them-but this must not be viewed as a weakness. He has to master the art of being a deeply concerned change agent without giving up his independence. He must, therefore, ensure the utmost involvement of the client in everything he does, so that ultimate success becomes a joint accomplishment. Secondly, consulting is essentially an advisory service. This means that consultants are not recruited to run organisations or take delicate decisions on behalf of desperate managers. They are advisers and their responsibility is for the quality and integrity of their advice; the clients carry all the responsibilities that accrue from taking it. Of course, in the practice of consulting there are many variations and degrees of advice. Not only to give the right advice, but to give it in the right way and at the right time-this is a basic skill of a consultant. Thirdly, consulting is a service providing professional knowledge and skills relevant to practical management problems. An individual becomes a management consultant in the full sense of the term by accumulating considerable knowledge of varying management situations and problems and acquiring skills needed for problem solving-for identifying problems, finding relevant information, analyzing and synthesizing, choosing between alternative solutions, communicating with people and so on. But managers, too, need to possess these particular types of skill. What is unique to consultants is that over the years they pass through many organizations and learn how to use experience form previous assignment to handle new assignments skillfully. Fourthly, consulting is not a service providing miracle solutions to difficult managerial problems. It would be an error to assume that once a consultant is brought in, life becomes

easy for management. Consulting is difficult, systematic and disciplined work based on the analysis of hard facts and the search for imaginative but feasible solutions. Why are consultants used? Providing special knowledge and skill : Consultants are called in when an organisation is short of people able to tackle a given problem with the same chance of success. It may often involve new techniques and methods in which a consultant has acquired special expertise. Supplying intensive professional help on a temporary basis: A deep examination of major problems, such as the company organisation or marketing policy, would require the full attention of senior management for long periods of time. Giving an impartial outside viewpoint: Even the best people within an organization may be too influenced by their personal involvement and existing traditions and habits to see a problem in its true light and propose feasible solutions. Because he is independent of the client organization, a management consultant can be impartial in situations where no one from within the organization would be. Providing management with arguments which justify predetermined measures: From time to time consultants are approached with a request to undertake assignments, and submit reports, so that a manager can justify his decision by referring to the consultants recommendation. In other words a manager may know exactly what he wants and what his decision will be, but prefers to order a consultants report to obtain support for his views. Who uses consultants? Management consulting as a professional service and method for implementing change is not confined to a particular type of organization or economy. In the course of led to varying patterns of specialization. its development consulting has been spreading to new areas of human activity and this has

Level of the countrys economic development: The use of management consultants has become common practice industrialised countries. In North America there are about 3,50 management consulting firms which thus constitute a major sector of the professional services. The figures are relatively lower in europe, but in the United Kingdom and many other European countries the growth of management consultancy has been quite impressive in the last twenty years. The economic and political setting of the country Management consulting had its origin in free market economies, where independent business companies now use consultants in may different way at their own discretion. Over the years, however, consulting has spread from private business to government. At the present time the use of management consulting services by government administrations and by government-controlled public enterprises is common practice. Sector of the economic and social activity: Most consulting assignments have traditionally been in industrial and commercial enterprises. But, from these sectors, consulting has spread to transport, catering, banking, insurance and so on. The growth of social organisations and services has led to demand for advice on their structuring and management. To give some examples, important management consulting assignments have been carried out for trade unions, sports and religious organisations, and international governmental organisations. Size of organisations: Although large organisations possess considerable management experience and specialist staff in various management functions and technique.Some large companies have their permanent consultants, available to provide help quickly if the need arises. In a small enterprise the decision about the use of a management consultant may be a difficult one. The owner or manager may find such professional service too expensive, and he often does not see how in his particular situation he could co-operate with a man from outside. External and internal consulting: In the present-day practice of consulting, larger organisations in the public and private sectors use both external and internal consultants. Internal consulting services are often thought to be more appropriate for problems that require a deep knowledge of the highly complex internal relations, procedures and political factors in large organisations; and an awareness of the various functions of the

organisation or of specific constraints affecting its operation. External consultants are preferred, even by organisations which have some internal consulting capability, in situations where an internal consultant would not meet the criteria of impartiality and confidentiality or would be short of particular expertise. In some cases, complex assignments are entrusted jointly to external and internal consultants, or internal consultants may be requested to define precisely the assignment for an external consultant, and to collaborate with him in order to learn as much as possible from him during the assignment. Trends and Growth Areas : The growth of the industry reflects the fundamental transformation talking place in business and the public sector. Many of them have adopted practices and strategies that are incompatible with todays environment of increased domestic and international competition. Management consultants have worked actively with business and the government to restructure the public sector, re-engineer business processes, and formative strategy. While there is no exact figure for the number of management. Consultancies in India but out of the total population only 5% have contributed to the management constancy sector. The recent trend is that companies prefer having low-level management supported by consultants. Since the managers are faced up with routine problems they cannot come out of it and think something much better for the company. It is the consultants who are well averse with such situations and can focus on the situation and bring out good results. The growth of the market is focused in tow components: traditional services and enterprise application systems (EAS) sometimes refereed to as information technology (IT) services. Traditional services, such as strategy, process improvement, and financial management grew by 11 percent in 1998. The implementation of EA systems such as SAP, BaaN, Oracle, and Peoplesoft grew at a much larger rate of 43 percent. Each of these sectors is expected to experience the most significant growth over the next 5 years. Others predicted growth areas for consultants in both private and public sectors include financial services, energy, and the restructuring of business. Management consultants get a very bad press: theyre either invisible or being attacked. Yet consultants in the UK alone are estimated to have earned up to 3 billion last year, while top firms have achieved growth rates of between 10 and 20 per cent. They must be doing something right.

Industry cycle: The management consultancy enterprise is least affected by this. If an industry has to merge or incorporate or if there is any lockout the present trend is clearly showing up that all theses activities cannot be done without the help of consultants. Since consultants are available on need basis, they dont tend to be obligation on organization as the employee does if the organization is at stake. Management consultants art dedicated and carry a focused approach. Cost effectiveness, internal control, systems formulation, budgeting, costing, revaluation of assets, legal matters, restructuring, collaborations, market survey, financial re-engineering, labor matters (VRS package and HRD schemes) are some of the few roles that have become effective in recent years. Management consultants have to be just provided with relevant inputs and they can deliver you desired results. Such inputs are regular information, broad vision, experience, new ideas, support staff, working environment, relation with the client staff, complete knowledge of clients resources etc. TRAINING AND DEVELOPMENT: Training : Should be viewed as a continuous Process to keep workforce versatile and up to the mark. Training is the organized procedure by which people learn knowledge and/ or skills for a definite purpose. No company has a choice of whether to train or not, only choice is that of when, now and in what area. Importance of Training : Benefits : Better and quicker adaptation to never techniques Generates confidence and improves productivity Helps to achieve the expected standard of performance, may result and into extra income Helps reduce accidents. Contributes to job satisfaction and high morale. Better quantity and quality of output Trained employees need relatively less supervision.

 1.

Trained employees knows about the type of tools and equipment to be sued thus he is not breaking equipment by wrong use of tools Adds to the bottom line by reducing rejections. Better customer satisfaction improved quality Contributes to the corporate image On the job training : (i) (ii) training giver by supervisor or designated non supervisor experienced employer Not located in any situation physically or psychologically.

Methods of Training :

2. 3. 4.

Vestibule System Of Training: an attempt is made to duplicate, as nearly as possible, the actual equipment material and conditions found in real work place Classroom Training : useful where concepts, theories, attitudes Behavioural aspects are to be learned, methodology lecture, syndicate discussion simulation games instruments itc Other Methods: Publication of manuals where necessary details are given. Notice boards for latest improvement Screening films. Educational visits to other factories Periodical lectures or deonstrations by different speciation. Nomination of employees

Types of Training : In-house : by own instruction/trainee External : By nominations

Total training chain in an organization:

If implemented it is investment.