Employability

BCCI INTER‐MANAGEMENT INSTITUTE PROJECT
COMPETITION

A PROJECT ON

“HOW DO WE IMPROVE EMPLOYABILITY IN THE
CURRENT BUSINESS SCENARIO”

PREPARED BY
Ms. BHUMIKA JOSHI
Mr. VISHAL MATALE
Mr. PUSHKAR REDKAR

PROJECT GUIDE
Mr. Atul Gawand
Head ‐ Human Resources
Greatship (India) Limited

LATE NARAYAN MEGHAJI LOKHANDE
MAHARASHTRA INSTITUTE OF LABOUR STUDIES,
PAREL, MUMBAI.
BCCI INTER MANAGEMENT INSTITUTE PROJECT COMPETITION
ACKNOWLEDGEMENTS

We take this opportunity to thank innumerable people who have extended their full
support and co‐operation during the course of this project. We are highly obliged that
BCCI gave us this enlightening opportunity to participate in the Inter‐Management
Institute Project Competition.
First and foremost we would like to thank our mentor Mr. Atul Gawand who was
generous with his time and freely shared his views, his active guidance and
encouragement for our project.
Our special Thanks to Dr. R. M. Tungare, our institute’s Director and also to the other
faculty members, Mr. C.S Ghabak, Dr. P.M. Kadukar, Mr. Sanjeev Parkar and Mrs. A.D
Kori for their valuable inputs.
We are grateful to all the respondents from industries who have contributed sincerely
towards the empirical study.

Regards,
Team MILS (Part 1)
Ms. Bhumika Joshi
Mr. Vishal Matale
Mr. Pushkar Redkar
LATE N M LOKHANDE MAHARASHTRA INSTITUTE OF LABOUR STUDIES
2
FOREWORD

In today’s business environment which is characterized primely by rapid pace and
technological advancement, certain concepts have gained renewed relevance from the
employers as well as national perspective. Especially as the east emerges to be the hub
of global economic activities, for population based heavy Asian regions, Employability
is the leveraging factor to catapult in the Super Power league.
Employability’s two constituent components viz Employ and Ability constitute the
crux of the quality of employment when married together in the concept of
employability.
As the patrons of one of the state run institutions dedicated to labor studies, the
project on “How do we improve employability in the current business scenario”
imparted us with the privileged opportunity to align our perspective.
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CONTENTS
Abstract……………………………………………………………………………………….………5
Objective of the study………………………………………………………………….……6

Scope of the study……………………………………………………………………….…….7
Approach……………………………………………………………………………………….…….8
Employability –a concept………………………………………………………………....9
Definition………………………………………………………………………………….………..9
Employee’s perspective on employability……………………………….…….10
Employer’s perspective on employability………………………………….….10
Importance of employability in current business scenario……….…11
Interrelation between business and employability……………………...12
Hypothesis………………………………………………………………………………………...12
Roadmap…………………………………………………………………………………………...13
Conceptual framework……………………………………………………………………. 20
Research methodology……………………………………………………………………..23
Limitation of research……………………………………………………………………..23
Data analysis …………………………………………………………………………………...24
Conclusion………….……………………………………………………………………………….29
Recommendation ……………………………………………………………………………..30
References ……………………………………………………………………………………....32
Annexure I………………………………………………………………………………………….33
Annexure II………………………………………………………………………………………..37
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ABSTRACT

This paper endeavors to throw light on an organizational challenge that involves the
workforce and the ability to keep its workforce employable in upcoming years. The
challenge is much like an approaching tsunami that is not visible over the horizon as
you look seaward from the beach. This challenge can be termed as Employability.
The current workforce that position themselves to address this challenge and capture
the opportunities that can be accrued with a positive and results oriented action plan
will be able to weather the tsunami of change and come out on the other side stronger
and more viable.
It also discusses the current business scenario and importance of employability in this
scenario. Business is dynamic in nature, and hence the organizations have to struggle
hard to survive in market. Existing employees will remain employable within the
organization only when organization survives and their skills, knowledge and
aspirations get aligned with organizations goals.
Organizations have to emphasize on its sustenance and growth along with the growth
of the employees. Being profit oriented alone will not ensure sustenance of an
organization. Employee orientation also plays an important part in it.
Finally, the paper will analyze and suggest some practical approaches for; improving
employability of the workforce in order to survive in the future.
5

OBJECTIVES OF THE STUDY:

• To grasp the concept of employability in the current business and economic
scenario.

• To assimilate the outlook of employers towards the current and future business
situations/ trends and investigate into the measures adopted by the
organization/ to be adopted by the organization in the future to mitigate the
risks produced by the external business environment in order to remain
employable.

• To investigate into the measures adopted by the organization to align its
workforce towards his business needs.

• To understand the measures taken by the employees in order to remain
employable in future.

• To gain insights into synchronization between the employers’ business needs
and strategies with the employee aspirations resulting into employability.

• To recommend the measures to improve / enhance employability in the current
business scenario.
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SCOPE OF THE STUDY:
This project report covers the meaning of EMPLOYABILITY. It elucidates the
CURRENT BUSINESS SCENARIO.

This project throws a light on the analysis OF EMPLOYER’S AND EMPLOYEE’S views
regarding EMPLOYABILITY. Also it consists of survey of Manufacturing Sector. And
lastly we have find out the indispensable of employability in current and future
business needs.

WHY MANUFACTURING SECTOR…?

In the process of designing the periphery of research, Manufacturing Sector was
considered and finalized.
The crux criteria for selection were:

• The contribution of Manufacturing Sector in Indian GDP is approximately
18.4% (According to the latest budget announced)

• The manpower involved in the Manufacturing Sector out of total workforce is
nearly 23%.

• Manufacturing Sector shows rapid changes in technology, hence the
employability plays a vital role in this particular sector.

• Lower Attrition Rate

• Width of gap induced in the nature of work post introduction of technology.

• Diversity of the workforce considering the skill domain of the sector.

• Most importantly the Pivotal position of the sector in economic scenario.

Based on the unique features pertaining to product profile and markets the
following companies were shortlisted:

1. Larsen & Toubro

2. Hindalco (Aaditya Birla Group)

3. Mahindra & Mahindra

4. Mukand Ltd

5. Emerson India ltd.
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OUR APPROACH:
EMPLOYABILITY – A CONCEPT
A review of the literature suggests that employability is about work and the ability to
be employed, such as:
• the ability to gain initial employment; hence the interest in ensuring that ‘key
skills’, careers advice and an understanding about the world of work are
embedded in the education system
• the ability to maintain employment and make ‘transitions’ between jobs and
roles within the same organization to meet new job requirements, and
• the ability to obtain new employment if required, i.e. to be independent in the
labor market by being willing and able to manage their own employment
transitions between and within organizations.
It is also about the quality of such work or employment. People may be able to obtain
work but it may be below their level of skill, or in low paid, undesirable or
unsustainable jobs, and so forth. Therefore, it is the capacity and capability of gaining
and maintaining productive work over the period of one's working life. (WIKIPEDIA)
Employability stresses the need to equip people with the skills and competences they
require to be employable or to create their own job and enterprises with the qualified,
motivated and committed workforce they require to remain competitive and grow.

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DEFINITIONS:

• “...the combination of factors and processes which enable people to progress
towards, or get into employment, to stay in employment and to move on in
the workplace…”
……. Scottish Executive, 2006
• “…the possession by an individual of the qualities and competences required
to meet the changing needs of employers and customers and thereby help
to realise his or her aspirations and potential in work…”
……. Confederation of British Industries, 1999

• “…a set of achievements‐ skills, understandings and attributes ‐ that make
individuals more likely to gain employment and be successful in their
chosen occupations…”
……. Learning to Work, SFC‐2004

• Employability is, ‘Labour Force trained in activities for which there will be
future demand for labour. This would mean, if the future demand for
labour is going to be in activities which require much more skills, much
more education, much more specific training and so on, are we providing
them? …perhaps, we are not’
……. T N Srinivasan, B L April 23,07

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As people change, ideas and views change:
The whole concept of employability majorly revolves around the axis poled by
Employer on one side and Employee on the other and propelled by market forces.
Employees’ perspectives on employability:
Knowledge, skills and attitudes
Deployment of above assets
Presentation

Employed Employable

Fig. 1.1

Employers’ perspective on employability:
Stiff competition, cut throat pace and technological leaps flavor today’s environment
revolving around business. In this wake of events employers treasure following
aspects:

Labour
Innovation
flexibility
Result
Multi skills
Oriented
Employer

Fig. 1.2

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WHY THE TERM EMPLOYABILITY GAINED GROUND IN
CORPORATE WORLD?
Few decades ago people feared that technology would reduce the need for educated
workers, leaving the large segment of population unemployed. The opposite occurred.
In fact, the demand for skilled and knowledge workers exceeds the supply. In the
current business scenario, companies are competing in two markets, one for its
products and services and one for the talent require in developing and delivering
them. Recruitment and retention are now as important as production and distribution
in corporate business strategies.

IMPORTANCE OF EMPLOYABILITY IN THE CURRENT BUSINESS
SCENARIO:
The current business scenario is characterized by cut throat competition, rapidly
changing technology, high performance work systems, development of new products
& service etc. The needs of the consumers have also undergone a sea change. The
customers now are more demanding and they know exactly what they want.
The new technological advancements give a company a competitive advantage, but

their competitors can easily catch up by implementing and improving on the new
technology.
However, there are a number of shifting demographics that companies can plan for
today. Sweeping shifts in worker attitude, availability and accessibility are happening
now, and can be turned into advantage for businesses with proactive human capital
management policies. It is clear that many traditional aspects of the work
environment are changing.
In order to succeed in this fast‐paced, dynamic landscape, companies must be agile,
forward‐looking, and ready for new paradigms in talent management that will be
required to achieve future plans.

The dependency of an organization to succeed in the current business scenario is to a
great extent on the knowledge, skills and abilities of its employees. To be successful in
today’s market, companies need an extremely capable, flexible and dedicated
workforce.

In recent times the organizations have undergone a lot of changes. There has been
more emphasis on lean processes, flatter organization structures which derecognizes
the earlier hierarchal systems. Outsourcing activities have also come to the fore front
recently. These activities affect the employability of the employees in the organization.

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INTER‐RELATION BETWEEN BUSINESS AND EMPLOY+ABILITY:
Recruiting outstanding technical talent in the organization is critical, but it’s not
enough since the business knowledge which is organization specific can only be
developed within organization. Thus the development and coordination of modern
workforce requires an integrated set of practices that addresses attracting, developing,
organizing, motivating and retaining outstanding individuals.
Business heads are also thinking about accessibility to various resources, customer
satisfaction and improving skills of their work force to sustain the change. The
organizations want continued growth and in turn facilitate the workforce as individual
in his career advancement.
The priorities of the workforce are shifting as well. Younger workers are far more likely
to respond that they “Work to live” rather than “Live to work.” Motivating this next
generation of workers will require more than simple monetary rewards. The days of
working one job for 30 years are clearly over, and the new generation of workers
demands not only that they are rewarded for their work, but also that they enjoy it.

Over the past two decades, the easiest way for large organizations to downsize has
been to layoff or offer voluntary retirement packages to their most senior experts and
managers. But within a short span of time these individuals reappear as outside
consultants‐as the organization recognizes that these are the only people with a key
set of skills or the company‐specific knowledge that they need.
In order to fill the talent pipeline, businesses will turn to specialized education to
ensure that they have workers with the right skills. The smartest companies will
manage their attrition, planning for succession and avoid costly knowledge and skill
gaps within their workforce.

The above mentioned explanation provides us with a fair understanding of the term
employability and its importance in the current business environment. The
interrelation of employability with the business and employee aspirations has led to
the evolution of two hypotheses.
HYPOTHESES:
1) Employability is the resultant of the efficient alignment between business
strategies and organizational processes.

2) Employability is the resultant of synchronization between individual employee
aspirations and organizational processes.
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ROADMAP:
The term employability i.e. employ + ability is gaining importance in current
business practices. The term employ reflects three different words viz. employer,
employee and employment.
Employ
Employer Employee Employment

Fig. 1.3

There are two critical components which result into employability viz Employers/
Organization and the Employees. Employers are the revenue and job generation
machines and the employees are the tools that leverage this machine.
In this approach we have tried to look at the employability parameters that an
organization has to look into to remain employable in future and the employability
parameters that an employee has to look into in order to maintain his employability
with the organization in future. It also tries to gain insights into how do the two forces
co relate or affect or interact with each other.
Employability can be considered only when there is existence of an organization
sustaining their growth and be able to provide employment to their existing
workforce.
Simply put, if there is no organization in future, there would be no employment for
employee and hence the term employability will loose its relevance.
A) Journey towards first hypothesis:
If someone asked you, what do you do for living? Typically, you might describe your
job with a list of functional responsibilities, but there’s probably a lot more to it than
that, some larger purpose linked to the goals of the organization.

Perhaps a more appropriate question is: How do you contribute to your company’s
overall business success? This line of questioning better captures the essence of
what you actually do, because it delves into the “Why?”, and not just the “What?”

13
Survival of the organization ensures the employees survival. The capacity of the
organization to provide employment to its employees and the ability of its employees
to maintain and sustain their employment are the two sides of same coin.
Here in the first hypothesis we are focusing on the employers’ side. The employer can
provide job opportunities to new entrants and job securities to existing employees
only when the current business grows.
The employer should be aware of his competitors, his business strategies and the
implementing policies. The business will survive only when the business heads/
employers have a futuristic orientation towards their business.

Planning & designing the goals to be met in future is the first step towards strategic
planning for organization’s survival. To be in a position to take advantage of the
opportunities and mitigate the risks arising out of the volatile market conditions in
future, it has to devise business strategies. Only devising the business strategies would
not serve the purpose. They also need to consider the availability resources that they
have and plan for the resources to be acquired to meet the future requirements.
Knowing and understanding the current business parameters are essential for
benchmarking the current position of the organization. It also helps in reviewing the
position of an organization and measure its progress. To facilitate the achievement of
the established goals for the future, business strategies of an organization revolves
around the aspects of Finance, Research & Development, Sales ,Marketing,
Production, Human Resources and Information Technology.
Once the strategies are devised, there should be certain implementation plans in
process. To implement those process plans, one has to consider the knowledge
required in developing the products as per market demands with proper utilization of
available resources. The process plans also consists of Shewhart Deming improvement
cycle (Plan‐Do‐Check‐Act). Top management reviews are also essential to upgrade
current business with required changes. These all link to its future business and its
survival.
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Our study is based on….

Fig. 1.4

Current Business Parameters: To Benchmark the current position of the
organization.

Future Plans: It indicates the vision of the organization towards the market it
operates in and the strategies they would consider for adapting to the dynamic
business environment.
The first questionnaire investigates into the business strategies which an organization
mainly focuses on like Products, Knowledge, Market & Resources.

Implementation Plan: This parameter deals with organizational processes through
which an organization intends to implement its strategies, their plans to allocate
resources to the intended strategies and skilling, re skilling and multi skilling their
employees.

It tries to capture the outlook of the employers that whether and how are they aligned
to dynamic business environment enabling them to remain employable in future.
15
According to People Capability Maturity Model, Employability is the efficient
alignment between the business activities and workforce, which experiences the
business practices.
1. In mature organizations, employability is directly related to business

performance.
2. Employability is a competitive issue and a source of strategic advantage.
3. Employability must be defined in relation to the organization’s strategic
business objectives.
4. An organization should invest in improving the Employability of those
workforce competencies that are critical to core competencies required
business.
5. The organization is responsible for providing improvement opportunities,

while individuals are responsible for taking advantage of them.
Hence in our first hypothesis, based on above information, we are assuming that the
employability is the resultant of efficient alignment between business activities and
the process

HYPOTHESIS 1: Employability is the resultant of efficient
alignment between the business strategies and the organizational
processes

B) Journey towards second hypothesis:

Human resource is one of the crucial resources of an organization. It plays a
vital role in achieving the objectives of the business/ an organization. Without
its employees the organization cannot exist.
Employees are to be nurtured in order to get maximum productivity from
them. The performance of these resources will only determine the success of an
organization. The effectiveness of such plans will be dependent on the
commitment of all the participants in the organization and their own
motivation to adapt themselves to the changing environment.
The need of the hour for an employer is to develop a psychological
contract with the employee. This will drive an employee towards
commitment to the organization.
16
The employer’s expectation from its employees needs to be communicated to
them. An organization needs to help an employee understand the demands of
the organization and urge him/her to look into the future prospects of his/her
role in the organization.
The employer has to take initiatives to identify the critical skill sets that an
employee needs to possess in order to be employable with the organization in
future.

Employees have to be upgraded with the necessary skills & knowledge in order
to remain employable. Thus it becomes very essential on his/her part, to take
initiatives to develop oneself and acquire skills & knowledge that would help
him/her to perform his/her current role more efficiently and also be prepared
for the future role.

Employee aspirations play a very important part in determining his
employability. Employee aspirations when aligned with the organizational goals
results in mutual benefit.

Mentioned in above diagram are the parameters on which the second hypothesis is
based.
These parameters affect the employability of an individual in the organization. This
hypothesis tries to capture the organizational lead interventions and Individual driven
initiatives to maintain employability in the organization.
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The importance of these parameters is as follows:
• Skill Inventory: Skill inventory becomes essentially important as identifying the
right person for the right job is the need of the hour.
• Multi skill plan: An organization needs to have multi skilling plan in order to
have a multi tasking work force.
• Learning & development: These initiatives ensure that the workforce is
equipped with the required knowledge in order to perform well on current
their current and future roles.
• Resource allocation & rewards: Resource allocation for the achievement of
KRA’s facilitates their easy accomplishment. Rewards in turn motivate the
employees to sustain their existing employment and grow with the
organization.
• Goal Setting: Clear goal setting helps to achieve role clarity. This would result
in more productivity.
• Communication Plan: This parameter captures the processes through which
communication relating to organizations plans, employee career perspectives
etc. are communicated to them.
• Individual Aspirations: According to McGhee and Thayer model of
organizational analysis, man analysis and task analysis, the needs of an
individual in the organization must be in congruence with needs of the
organization in order to make the best possible utilization of the available
human resources in the organization.
• Individual Development Plan: To enable an employee survive and grow with
the organization, it is very essential to draw a systematic developmental plan,
which will let him know about the future viability of his role with the
organization. Hence his skills will be best utilized.
• Line of sight to KRA’s: Line of sight connects the company goals and results to
what employees do each day. This aspect can be captured through the system
of goal setting and reviewing those goals.
• Role Clarity: It is an important parameter as ambiguity of role would lead to
diversion of the energies and skills & knowledge of an employee into
unproductive events.
Here we try to put in perspective the aspects of employability for an employee and
gauge his/her knowledge on the business plan of the organization, the alignment of
their aspirations to the business goals, individual initiatives, and role clarity.
18
Hence based on the above understanding, our second hypothesis is:

HYPOTHESIS 2: Employability is the resultant of synchronization
between individual employee aspirations and organizational
processes

Employability in the organizational context refers to integration of the employee
developmental needs with the needs & future plans of the organization, which will
result in optimum utilization of the skills & knowledge of an employee.
This results in a mutual benefit. The skills and knowledge need to be developed in
tune with what is going on in the market so that the skills do not become obsolete.
19
Our Conceptual frame‐work:

Employer holds the compass that dictates the path of the voyage to suit the waves of
the market.
Mentioned below is the gradual concept development and the approach undertaken to
analyze the sample specified:

T1 T1 Long term
strategies
Employees’
BUSINESS
initiatives

Currently

employable Existence of plan
to achieve the
long term
B
T0
A T1 Absence of
alignment
between
Fig. 1.5 business goals &
individual
aspirations
KEYS:
A: people currently employed with the organization but equipped with skills and knowledge
lower than that required in current business
B: people currently employed with the organization but equipped with skills and knowledge
higher than that required in current business
T0 to T1 is the time phase indicating current business needs (T0) and future demands (T1)
An arrow shows the alignment of employees’ aspirations with business goals
20
Explanation of the concept:
In the above diagram, the organization is currently at level T0 which represents the
current business environment and the skill level required by the employees to survive
in this market and meet the current needs of the organization.

At the same time the employee is also at the same level T0 as he is employed with the
organization. It is shown by green horizontal line connecting business and employees’
initiatives. This ensures that his skills are matching to the needs & requirements of the
organization.

The orange box labeled as A reflects those employees who are currently working but
are below average in the requirement of skills and knowledge to meet current needs.
Also the violet box labeled as B reflects those workers who are working but have skills
and knowledge exceeding those currently required by the organization. In second
case, highly skilled employees are more in demand as their employability within
organization is enhanced.

Now the organization wants to reach level T1 in the near future. This depicts the future
prospects of the business. For planning into the uncertain future, organization has to
have some business strategies in place. But only formulation of business strategies
would not serve the purpose of the organization.

To support these strategies the organizational processes have to be in place and the
resources to be allocated accordingly. To match the level to skills required by the
employees when the organization is at level T1 the employer needs to take proactive
steps in order to upgrade the employees enabling them employable with the
organization and at the same time the employee is also liable to keep himself updated
with the skills and knowledge required to be adaptable to the changes taking place in
his surroundings.

The employed people at level T0 may not remain employable at T1, if their skills and
knowledge do not match with that of the needs of the organization at that level. At the
same level T1, the employees’ personal aspirations and view towards the organization
should align with business goals and strategies. This has been shown by an arrow
which moves in the upward right direction. Unless the employees align with the
business goals and processes, the growth of the organization as well as the employee
will be below average.

Let us understand it more clearly with help of hypothetical example. The passenger
vehicle sales in India crossed the one million mark in 2005. This segment grows at 10‐
15% annually. There are only three cars in India for 1000 people as compared to the
other extreme 500 cars for 1000 people in the United States. Goldman Sachs has
predicted that India will have the maximum number of cars on the planet by 2050
overtaking the United States.
21
This research statement makes the clear understanding about present and future
scenario of automobile sector in India. In 2009, considered as T0 timeframe, the
automobile companies are making petrol/ diesel cars. This is the current need and
demand of market. Those employees who are working right now in any automobile
industry are employable today to meet current demand. In 2020, considered as T1
timeframe, the market will be demanding Hybrid Cars instead of those petrol/ diesel
cars.
Here the employer should be aware of this change, and then only employer can
sustain his business and survive in external market. If employer has clear futuristic
vision in 2009 that he has to make Hybrid cars till 2020, then only his current
employees will remain employable within the organization and labour market too.
At level T1 to make a Hybrid car, employer will require workforce whose skills are not
only matching with needs of T1 market demands, but also there should be alignment
between business strategies & goals with the employed workforce.
The workforce who is currently employed and skilled in making petrol/ diesel cars
will remain employable till 2020 only when their skills are raised to level T1 to make
Hybrid car. This is what employability means with relation to Employer’s business and
employees’ perspectives.

Diagrammatic representation of an example:
Alignment between
business goals &

individual
Yr 2020 T1 T1 (Hybrid car)
Business strategies
Employable
& planning
Employee Employer
in T1

Yr 2009 T0 T0 (petrol/ diesel car)
Absence of
Employable
in TO alignment between
business goals &
individual

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RESEARCH METHODOLOGY:
The research methodology followed in this project:
1) Collection of Primary data through questionnaires:
To capture the essence of employability with reference to parameters that offer
us a judgmental point of view on the facets of employability two questionnaires
were designed in order to gain insights into the outlook in a dual flavor viz
Employers & Employees.

2) Secondary Data:
Through review of literature from various sources like books, reports, internet
etc.

Sample Size: 100 Respondents, 5 Companies.
Sampling Method: Stratified sampling method has been followed in this research.
The target group is divided into two homogenous group viz. Employer & Employee.
Out of 100 respondents, we have targeted 20from employer’s side and 80 from
employee’s side. This is done by random sampling.

Employers – Represented by the Head of the Departments
Employees – Represented by the Middle Management

LIMITATIONS OF THE RESEARCH:
• The research is restricted to the White collar workers
• Intra‐industry would give us better understanding and hence we are limiting
our research or study to one sector only i.e. Manufacturing Sector.

23
ANALYSIS OF DATA:
For the purpose of analysis of the data, the two questionnaires have been combined
based on certain important parameters affecting employability.
The analysis for the purpose of our research has been divided into parts viz Data
Analysis & Trend Analysis. Data Analysis represents the current position of the
organization relating to the different parameters. Trend analysis investigates into the
future trends observed from the available data.

DATA ANALYSIS
A) Understanding of future landscape
100
80 Employers
Responses
60 Employees
Responses
40
20
0
Understanding Processes aimed Processes aimed
of Implementation at future capacity at synchronization
Plan of the building of individual
organization aspiration &
organizational
process
In the above diagram we have depicted the percentage of favorable responses obtained
on the Y axis versus the parameters mentioned on the X axis. It captures the
employers as well as the employees responses.
1) Understanding of implementation plan of the organization: The above
chart depicts that 80% of the respondents in the employers’ category have
responded in a favorable manner and 47% of the employees have responded in
a favorable manner. A difference of opinion to the extent of 33% is observed.
Thus, this captures that the organizations are reaching out to the employees
for making them aware of their strategies and implementation plans. But more
efforts are to be taken on this front as the communication does not reach to the
employees as intended. More and more employees need to be made aware of
the business goals, strategies adopted and to be adopted by the organization.

24
2) Processes aimed at future capacity building: It can be observed that on this
parameter 100% of employers have responded favorably and 80% of the
employees have responded favorably. A difference to the extent of 20% is
observed.
Thus, this gives us an insight that the organizations has certain processes like
cross functional training, multiskilling etc. and it aims at developing the
potential of their employees.

3) Processes aimed at synchronization of Individual aspirations &
Organizational Processes: It can be seen that the around 90% of employers
have positively responded and 70% employees have responded positively. Thus
there is difference of around 20%.
This parameter captures that the organizations have been taking steps to take
into consideration the employee aspirations and help them align to the
organizational goals, through various processes like Goal Setting & Key Result
Areas, Role Clarity, Career Development etc.

B) Understanding of current situation
100
80
Employers
60 Responses
Employees
40 Responses
20
0
Effective utilization Rewards & Business Process
of PMS for Recognition needs improvement is an
developing future to facilitate investment for the
capability employee future and not
development current expense
In the above diagram, % of responses has been measured on the Y axis and the
parameters on the X axis.

25
1. Effective Utilization of Performance Management System for developing
future capability:
The above diagram indicates that 90% of the employers/ organizations say that
PMS is the only method used for identifying the future needs for developing the
employees in tune with the business demands. 70% of the employees also
agree to it. Hence a difference of around 20% is observed.
This shows that the organizations have a scope for further improvement in
their Performance Management system.

2. Rewards & Recognition needs to facilitate employee development:
It can be observed that 80% of employers have responded positively. But only
50% of the employees have responded in the same manner. There is a
difference of around 30%.
This indicates that the organization has to emphasize more on the rewards and
recognition aspects as the employees have higher expectations in return of the
contributions made by them towards the organization.

3. Business Process improvement is an investment for the future and not
current expense:
It can be clearly seen that 70% of the employers/ organizations consider
business process improvement from an investment view point as it would lead
to enhanced productivity. The employees also hold the same view.
The organizations have taken various steps towards business process
improvements through knowledge acquisition, function specific trainings,
focus on new technology & innovation etc.

26
C) HIGHEST PRIORITY ITEMS WHICH COULD LEAD TO EMPLOYABILITY –
(EMPLOYEE RESPONSES ONLY)
100%
100 90%
80%
80 75%
60%
60
40
20
0
Importance Enhancing Skill Flexibility Individual
of Strategic Productivity Development Aspiration
Plans with & Learning are important
Long Term avenues for retention
Focus

In the above chart, on the x axis the highest priority items are listed which could lead
to employability and the y axis denotes the percentage of respondents.
Thus it can be analyzed from the above information that skill development is
considered to be the most important factor in employability. Access to learning
avenues and process and productivity improvement techniques are accounted to be
one of the critical factors leading to employability.
Flexibility as an aspect has been given a low priority and hence it shows that the
employees need to be more flexible. Individual aspirations play a very important role
in order to retain the employees. Focus now needs to be shifted towards better
understanding of the strategic long term plans of the organization.

27

TREND ANALYSIS:

1) Utilization of conventional training techniques for enhancing employee
effectiveness.

Most of the employers are looking for campus hirings to meet the increase in
the required manpower. Nearly 10% increase every year is predicted. The
currently prevailing training techniques would have a limited impact as the
percentage of inducted in the organization increases.

2) Mergers & Acquisitions seems to be the most preferred route for the
organizational expansion.

The commensurate strategies to aid this expansion would have to be more
facilitating.
Goal Setting and PMS will be the pivotal processes which will play a crucial role
in effectiveness.

3) Organizations have identified skill gap to be a factor affecting business
policies and growth rate.

The most preferred instruments to lessen the skill gap seem to be Multiskilling
& Automization.

4) The organizations have realized the change in the profile of the
workforce needed for the new economy and hence are investing in
processes to retain & develop the talent.

5) There seems to be a positive shift in the employees’ attitudes towards
Multiskilling & cross functional training.

28
CONCLUSION:
The alignment of business and the workforce determines the employability quotient in
an organization. Throughout the study it has been depicted that Employers/
Organizations & Employees are the two important aspects which one needs to
consider in understanding employability.
The business strategies and processes when effectively planned for & implemented will
result in employability as the organization would be able to adapt to the market
changes. Hence in the organizations where there are efficient business strategies
supported by commensurate organizational processes to implement these strategies,
the organization would be high on employability quotient. In addition to this the
career needs, aspirations, motivational levels & skill utilization of employees are to be
given due importance. The employees have to focus on flexibility and acquiring more
knowledge & skills, to remain employable. They need to understand not only their
functional requirements but also the business of the organization.
Our study indicates that there is a need for current performance management system
to focus on creating different career avenues for its employees. Identifying career
needs of the individuals will play a critical part in enhancing their effectiveness and
productivity. Employee developmental initiatives taken by an organization mainly
revolve around functional & cross functional training. Hardly, any emphasis is given to
Mentorship and Coaching. Networking with the mentors or coaches can help the
employees gain helpful insights from these experienced persons as they carry with
them the necessary expertise and experience.
Most of the organizations are looking at lateral hiring & campus hiring as the sources
to meet the increase in the additional manpower required in the future. The internal
sources of recruitments also need to be given due consideration. Internal sources
could be internal job postings, promotions, special assignments, lateral moves etc.
In conclusion, the organizations will have to develop thinking/ processes insulated
from the current operational environment and concentrate on the future existence of
the organization.
29
OUR RECOMMENDATIONS:

1) Linkage between Strategic planning and Human resource planning:
Planning for utilization and development of human resources in an
organization depends on corporate planning. Human resource needs must be
planned for strategically, with the growth of the organization. This aspect
needs to be emphasized upon.

2) Meeting the expectation of the employees:
The expectations of managers and workers have undergone a sea change. To
plan for the improvement this work force, is not just to be concerned with their
well being, productivity etc., but to take cognizance of the hopes, ambitions,
fears and achievements of individuals at work and leisure.

3) Strong need for improvement in Organizational Communication:
No organization can expect its employees to support objectives about which
they have little knowledge, understanding or involvement. Through our
research we have found that most of the employees are communicated of the
business plans only through their superiors .Other mechanisms to reinforce
these communications should be emphasized upon such as Formal
Announcements by the HR, through circulars, emails, newsletters, periodic
town hall meetings addressing the issues, concerns & plans of the organization.
This would urge the employees to look into the future that the organization
will have and how would he be able to contribute towards it.

4) Succession Planning and Leadership Development ought to be two sides
of the same coin:
From our research it was evident that most of the companies plan for their key
positions either through succession planning or at times by recruiting
experienced personnel. Succession management system needs to be evolved
which would focus on development, identify the linchpin positions, create
transparency, measure progress regularly and maintain flexibility.

5) Skill Matrix to be developed:
Through research it was observed that most of the organizations do not
articulate skill mapping exercise. Identification of skills is done only through
the training needs identification or performance review. One of the main focus
of skill matrix should be on employability skills such as Leadership, Teamwork,
Technology, Communication etc.

30

6) Reward & Recognition System:
Appropriate compensation, special incentives systems to be designed, non
monetary performance rewards to be given to let the employees know about
their contributions towards the organizations success etc.

7) Commitment Systems:
Commitment systems need to be developed in the organizations. Commitment
systems aimed at shaping desired employee behavior & attitudes by forging
psychological links between employee & organization goals. This can be
achieved by inculcating the sense of belongingness to the organization in each
and every employee right from the day an employee enters into the
organization. This could be done through inductions, periodic meetings,
investing in human capital through training, employee engagement activities,
job clarity etc.

31
REFERENCES

Business Strategy – Michael Porter
Human capital magazines
People capability maturity model
Harvard Business Review Magazines
Talent Management – Peter Cappelli
Wikipedia
Career Development‐ Employability Dimensions – Norman. E Amundson
University of British Columbia
Emerging issues in Human Resource Management
32
ANNEXURE I: (Employer’s questionnaire)
SURVEY FOR EMPLOYABILITY WITH RESPECT TO

CURRENT BUSINESS SCENARIO
Instructions:
• Kindly TICK or HIGHLIGHT the box corresponding to your opinion.

• Respondents can choose multiple options.
A)
Name of the respondent: _____________________________________________________
Name of the Company: ______________________________________________________
Department & Designation of the respondent: ___________________________________
Expected turnover of the current FY 2009/10: ___________________________________
Growth rate observed in current FY 2009/10: ___________________________________
Labour turnover of the FY 2008/09: ___________________________________________
Current Employee Strength in the Organization: ________________________________
B)
1) What would be the numerical increase or decrease in the growth rate over period of next
five years?
a) Arithmetic increase
b) No increase - No decrease
c) Exponential increase
d) Decrease
e) Don’t know
2) Three years down the line, for achieving desired goals, which of the following strategies
would you be focusing on?
a) Mergers & Acquisitions b) Diversification into new product line
c) Organic Growth d) Don’t know
33
3) What would be the % increase or decrease in budgetary allocations as compared to the

budget allocated last year on the following parameters?
Aspects Options
Production
Employee cost
Marketing
R&D
Operations
a) 0 to 5% b) 5 to 10% c) 10 to 15%
d) 15% and above e) don’t know
4) What would be the estimated % increase in the manpower required to achieve the long
term goals of the business?
a) 0 to 5% d) 5 to 10 %
b) 10 to 15% e) 15% and above
c) Don’t require additional manpower f) Outsourcing the activities
5) What will be the sources for hiring for the expected requirement of manpower with
requisite skills & knowledge?
a) Campus hiring
b) Lateral Hiring
c) Internal Job Postings
6) Do you conduct any Process Improvement methodologies to achieve current business

goals?
a) Yes b) No
If YES, please enlist the processes which has been implemented
a) _____________________________________________________________________
b) _____________________________________________________________________
c) _____________________________________________________________________
34
7) What would be the composition of freshers vs. experienced persons hired in the
organization to mitigate business needs?
Current: Future:
Fresher’s ______________ Fresher’s ___________
Experienced ______________ Experienced ___________
8) Kindly do a SWOT of the parameters given below in relevance with your future business
plans:
Put TICK on appropriate box
Strength Weakness Opportunities Threats
Qualitative Manpower
Access to Technology
Access to Finance
Market Share
Labor Unrest
Customer Expectations
9) How frequently do you review your business strategies?

a) Quarterly
b) Half yearly
c) Yearly
d) As per needs
e) Don’t know
10) How does the business strategy get communicated?

a) ______________________________________________________________________
b) ______________________________________________________________________
c) ______________________________________________________________________
11) Does the Skill Gap affect the business policies and the growth rate?
a) YES b) NO
If YES, kindly list the interventions taken by the organization to reduce the Skill Gap
a) Multi Skilling
b) Apprenticeship or Hiring Trainees
c) Atomization
35
12) How frequently do you conduct a cross functional training for your manpower?
a) Once in year
b) Twice in year
c) As per requirement
d) Don’t carry out any cross functional training
13) List the Knowledge Acquisition tools currently employed to achieve your business goals
a) ____________________________________________________________________
b) ____________________________________________________________________
c) ____________________________________________________________________
d) ____________________________________________________________________
14) Do you consider your existing manpower as an Active Resource that will be responsible
for the progress of the business year on year?
a) YES b) NO
If YES, enlist the measures that are being adopted to align them with the business goals
a) _____________________________________________________________________
b) _____________________________________________________________________
c) _____________________________________________________________________
d) _____________________________________________________________________
15) How do you plan for the Key positions in the organization?
a) Succession Planning
b) Leadership Development
c) Recruitment of experienced personnel
16) Do you think your current customers & their needs will change over the period of next
three years?
a) YES b) NO
If YES, which actions you are/ will be taking to sustain your business
a) Targeting multiple customers for same product

b) Improving the quality of product as per changing need
c) Don’t know
36
ANNEXURE II: (Employee’s questionnaire)
Survey on Employability
Instructions:
• Kindly Tick or Highlight the box corresponding to your opinion.

• Respondents can choose multiple options, if required
Name of the respondent (Optional): ____________________________________________

Name of the Organization: ___________________________________________________
Department & Designation: __________________________________________________
No. of years serves in the organization: _________________________________________
1. How were you communicated of the organizations vision and mission?

a) Induction
b) Meetings / Through superiors / HOD’s
c) Circulars / Newsletters/ E Mails
d) Informal Channels
e) not communicated
2. What is the current business situation faced by the organization?

a) Recession
b) Recovery / Growth
c) Competitive Market
d) Don’t Know
3. How was the business plan for the current year communicated to you?
a) Through superiors
b) Through goal setting / KRA’s
c) Not communicated
37
4. Do you know about the future business plans of the organization?

a) YES
b) NO
If YES, how are you communicated

a) Meetings with HOD / Immediate Superior
b) Formal announcements by HR
c) Informal Channels
d) Not communicated
5. How often do you have the business review meetings? ( To communicate the pace at
which business is growing)
a) Quarterly
b) Half Yearly
c) Yearly
d) No business review meetings are conducted
6. How often do your Key Result Areas (KRA’s)/ goals get reviewed by the immediate
superior?
a) Quarterly
b) Half Yearly
c) Yearly
d) Does not get reviewed
7. Do you have any budgetary sanctions for achievement of your KRA’s?

a) YES
b) NO
8. How are you communicated about the critical areas of your job?
a) Induction
b) Performance reviews
c) Training need identification
d) No communication
9. How would you rate the utilization of your skills in your current job profile?
( 1 - lowest, 5 - Highest )
a) 1
b) 2
c) 3
d) 4
e) 5
38
10. What are the skill enhancement techniques deployed by your organization?
a) Internal / External Training
b) Mentorship
c) Coaching
d) Educational / Professional Courses
e) Other (Please Specify) _____________________
f) Not imparted
11. What is the frequency of the function specific training programs?

a) Monthly
b) Quarterly
c) Yearly
d) Not conducted
12. How do the critical skills required for your role get assessed?
a) Skill Mapping exercise
b) Competency Mapping
c) Training needs identification
d) Performance appraisals
e) Does not get assessed
13. On which of the following aspects have you been trained by the organization?
a) Leadership skills
b) Communication Skills
c) Technology Skills
d) Teamwork
e) None of the above
14. How would you rate your flexibility to move to other functional areas? (1- Least
Flexible, 5 – Most Flexible)
a) 1
b) 2
c) 3
d) 4
e) 5
15. Which of the other functions (except for your own function) have you been exposed
to?
a) Finance
b) Production
c) Operations
d) Others (Please Specify) ______________________
e) None
39
16. How do you upgrade yourself professionally for the current and future requirements
of your role?
a) Reading related articles, periodicals etc
b) Enrolling in professional courses
c) Attending Seminars / Forums
d) Other (Please Specify) _______________________
e) None of the above
17. How is the compensation structure rewarding your contributions to the organization?
a) More than adequately
b) Adequately
c) Not adequately
d) Very poor
18. Which are the various career development methods used in the organization?
a) Promotions
b) Job posting / Lateral Moves
c) Special Assignment
d) Job Redesign
e) Don’t Know
19. How is the career development path planned in the organizations?

a) Performance Appraisals
b) Career Counseling
c) Mentoring Or Coaching
d) None of the above
20. Does your personal goal align with organizational goals?

a) YES
b) NO
21. How would you rate the Performance Management (Performance Appraisal) System
of the organization? ( 1 – lowest , 5 – Highest )
a) 1
b) 2
c) 3
d) 4
e) 5
40

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BCCI INTER‐MANAGEMENT INSTITUTE PROJECT

Objective of the study………………………………………………………………….……6

The new technological advancements give a company a competitive advantage, but

Employer Employee Employment

1. In mature organizations, employability is directly related to business

5. The organization is responsible for providing improvement opportunities,

SURVEY FOR EMPLOYABILITY WITH RESPECT TO

• Kindly TICK or HIGHLIGHT the box corresponding to your opinion.

Name of the respondent: _____________________________________________________

Name of the Company: ______________________________________________________

Department & Designation of the respondent: ___________________________________

Expected turnover of the current FY 2009/10: ___________________________________

Growth rate observed in current FY 2009/10: ___________________________________

Labour turnover of the FY 2008/09: ___________________________________________

Current Employee Strength in the Organization: ________________________________

3) What would be the % increase or decrease in budgetary allocations as compared to the

d) 15% and above e) don’t know

6) Do you conduct any Process Improvement methodologies to achieve current business

9) How frequently do you review your business strategies?

10) How does the business strategy get communicated?

a) Targeting multiple customers for same product

• Kindly Tick or Highlight the box corresponding to your opinion.

Name of the respondent (Optional): ____________________________________________

1. How were you communicated of the organizations vision and mission?

2. What is the current business situation faced by the organization?

4. Do you know about the future business plans of the organization?

If YES, how are you communicated

7. Do you have any budgetary sanctions for achievement of your KRA’s?

11. What is the frequency of the function specific training programs?

19. How is the career development path planned in the organizations?

20. Does your personal goal align with organizational goals?

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