Hi Aby,
Please don't use such bright colors for posts.
Okay, sensitivity training is a kind of training in small groups where the members learn how to interact with each other by understanding other members and also themselves - kind of sensitive awareness. This is expected to improve interpersonal relationships. Sensitivity training is an OD technique.
In organizations, participants are selected so that they are from various projects/departments and they are left free to discuss any topic, mostly concerned with the organization. This would bring out various points of view and also help the participants look at things from another person's point of view, thus helping to develop empathy.
Basically, the idea of sensitivity training is to break the barriers of mutual understanding and eventually help the organization develop as a whole.
You can get theoretical knowledge on this in all major books on OB - Robbins, Luthans, etc., and a quick search on the net should provide you with loads of info.
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Sree