EISSN Human Resource Incon XI 2016 (1) Page 274

ASM’s International E-Journal on ‘Ongoing
Research in Management & IT’
E-ISSN – 2320-0065
HUMAN RESOURCE MANAGEMENT
In Association With
I
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ASM Group of Institutes, Pune- 411018
II
From The Editor’s Desk
INCON “International conference on Ongoing Research in Management and IT” is an

important activity of ASM group of institutes’ commitment for qualitative research in
academics. This “ASM’s International E-Journal on Ongoing Research in Management &
IT” is an outcome of the dedicated contribution from all the authors. INCON is truly
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various countries. Audyogik Shikshan Mandal has been playing a pioneering role in the
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Managing Trustee and Secretary,
Audyogic Shikshan Mandal,
Pune -411019 (India)
III
EDITORIAL BOARD
Dr. Asha Pachpande Managing Trustee and Secretary, Audyogik Shikshan Mandal
Dr. Sandeep Pachpande Chairman, Audyogik Shikshan Mandal
Dr. Santosh Dastane Director Research, ASM Group of Institutes
Dr. S. B. Mathur Director General, ASM’s IIBR
Dr. Sudhakar Bokephode Director, ASM’s IPS
Dr. G.B. Patil Dean, ASM’s IPS
Dr. Nandkumar Khachane Director , ASM’s IIBR
Dr. K. C. Goyal Professor, ASM’s IIBR
Dr. J. N. Shah Director, ASM’s IMCOST
Prof. Ashish Dixit Director, ASM’s ICS
Dr. Dhananjay Bagul Principal, ASM’s CSIT
Dr. Nirmala K Director MCA, ASM’s IBMR
Dr. Priti Pachpande Associate Professor, ASM’s IBMR
IV
CONTENTS
Sr. Title of the paper Name of the authors Page No.
No.
1 Innovative Quality Indicators of Faculty of Ravi Nath Kumar 1 to 8

Management Institutions : A Study in Dr. Asha Pachpande
Perspective of Students Performance
2 Study on Best Talent Management Practices Dr. (Mrs) Asha Pachpande 9 to 19

of Selected Foreign MNC’S in Pune Region Mr. Punamkumar Hinge
3 H R Challenges & Strategies of 21st Century Dr Ashok Verma 20 to 26

in Indian Power Generation Industry – A Dr. K.C.Goyal
study from Employers/Executives Perspective
4 Managing Human Resources in Small & Prof: Sangita Solanke 27 to 33

Emerging Organizations Dr.S.B.Mathur
5 Emerging Engagement Models for Employees Prof Shakti Marhatta 34 to 40

in IT and ITES Companies
6 Negaholics At Workplace And Toxic Culture Mrs. Vidya Khachane 41 to 48

Within Organization With Special Reference
To Management Institutes
7 Role & Challenges for HR in Retail Industry in Swati Manoj Yeole 49 to 55

Indian Context Swapnisha Pankaj
Khambayat
8 Study on Recruitment through Social Media Miss. Shraddha Prakash 56 to 64

Networking Sites Shinde
9 Leadership Development And Succession Yogini Kulkarni 65 to 76

Planning In Manufacturing Organizations
10 To Study the Industrial Relation in the Prof. Bhushan Pednekar 77 to 83

Context of Changing Business Scenario in
Automobile Industries in and around Pune
Region for Large Scale Auto Manufacturing
and Ancillary Industries
11 Good Income is The Initiating Factor for Good Prof. Gazala Nadap 84 to 92
Outcome in
the Performance of Employees (Private School
Staff)
12 “Study of the Need of 'Emotional Intelligence' Prof. Eapen Thomas 93 to 99

in People to Lead a Stress-Free and Mr. Shamin Eapen
Successful Life”
13 “Examining the Best Practices in Performance Prof. Meenakshi Singh 100 to 105
Appraisal” “In Siemens” Prof: Sangeeta Solanke
14 A Study on Soft-Skills Training and Cultural Dr. D. B. Bagul 106 to 114

No.
Sensitization of Indian BPO Workers Ms. Nisha Bedekar
15 Nokia Knocked Out from India: Shattered Prof. Shyam Narayan RAI 115 to 125
dreams of employees
(A Case Study Development)
16 Talent Management: A Linking Pin To Ms. Gazal Yadav 126 to 131

Employee Engagement Ms. Deepti Sharma
17 Quality of Work -life as Corporate Ms. Trupti Shelk 132 to 135

Responsibility for Employee Satisfaction Ms.Varsha Parab
18 To Study M-HRM (Mobile Human Resource Mrs. Swapna Anand Saoji 136 to 142
Management) Dr. Milind Pande
Practices and its Impact on Workforce
through Smart Phones in Selected
Information Technology (IT) Multinational
Corporations (MNC’S) in Pune Region
19 Human Resource Management Is The Key For Prof. Sudhir S. Sant 143 to 151
Competency Development To Meet The
Future Challenges Of The Business
20 Socialism At Work Place – Advocate - Dr. Ruby 152 to 160

Special Reference to Pcmc Industrial Belt Chhatwal
21 A Study of Women Workers in selected Fruit Rupesh G. Sawant 161 to 170

Processing Units
with reference to Ratnagiri Taluka
22 Internship for Management Students: Ways Col Virendra Kumar T Mishra 171 to 180
to Make the Internship Effective and Ms Swapnisha Khambayat
Interesting
Approach for Intern’s Training & Development
23 A Paradigm Shift from Training to Learning- Ms. Sonal Sushil Modi 181 to 192
An Implicit characteristics of a Learning
Organization
24 Training & Development Process Ms. Pallavi P. Kulkarni 193 to 198

Ganesh Prakash Kedari
25 A Study of Human Resource Management Prof. Kalpana Lodha 199 to 217

(HRM) Practices In Management Institutions
Affiliated To University of Pune (UoP)
26 Impact of Long Working Hours on Health of Ms. Sneha Alan 218 to 225
Women Employees Working in IT/BPO Sector Ms. Kajal Maheshwari
27 Gender Diversity A Shift in Paradigm: Ms. Deepti Sharma 226 to 230

Advancing Women’s Equality at Workplace Ms. Gazal Yadav
No.
28 The Impact of Training and Development on Mrs. Sarita Goyal 231 to 238
Employees Performance Mrs. Kirti Bora
29 A Study on Employee Retention Strategies & Preeti Tilekar (Surkutwar) 239 to 250
its Effect on Job Satisfaction of the Employees Dr. Asha Pachpande
in Manufacturing Industry (Pune)
30 Effect of Organizational and Occupational Mr. Swapnil Undale 251 to 259

Commitment on Satisfaction and Performance Dr. Milind Pande
of Medical Representatives
31 The Changing Face of Industrial Relations in Mr. Abhijit Khurape 260 to 266
India
32 High Erosion Rate; A Big Challenge for HR Prof. Pravin Thorat 267 to 274
Department
33 Competency Mapping: A Strategic Tool for Mrs. Vishranti Raut 275 to 280
Recruitment Mr. Saurabh Pandey
34 Significance of Competencies for Organization Ankush Puri 281 to 284

- A Case Study Dr. Asha Pachpande
35 The Role Of Competency Mapping In Prof. Mrunal Belsare 285 to 295

Employee Performance And Development
With Respect To Selected IT Industries In
Pune City
36 A study on Work-Life Balance in Working Ms. Shital H. Rathod 296 to 299

Women Mrs. Sunayana Shivthare
37 Digitalization of Human Resource Prof. Dr. Jagdeesh 300 to 308

Management in Indian Banking Sector Ramchandra Lanjekar

ASM’s International E-Journal on E-ISSN – 2320-0065
Ongoing Research in Management & IT
Innovative Quality Indicators of Faculty of Management Institutions : A

Study in Perspective of Students Performance
Ravi Nath Kumar Dr. Asha Pachpande
Research Scholar Director, IBMR, Chinchwad
Savitribai Phule Pune University Research Guide
ravinathkumar123@gmail.com
ABSTRACT:
Generally, the aim and objectives of any educational organization is the
development of individual as well as development of our society. The development of
individual and society is possible only if the direction is proper. In development process,
the first and for most thing comes is quality. In context of quality of education it becomes
very much essential to understand that what really quality constitutes in education
system. The aim of the research paper is to emphasize the relation between innovative
quality indicators of faculty of management institution and students performance. The
paper directs the links of improving the quality of faculty can enhance the student’s
performance. This paper takes an overview of management faculty, continuous
improvement in their performance, so that overall quality of management institutions
can be maintained.
Keywords: Innovative, Quality Indicator, Management Faculty, Management
Institutions.
Introduction:
The meaning of “Innovation” is to change or something new. The International
Dictionary of Education describes “Innovation” as promotion of new ideas or practices in
education system. In general terms innovation describes self generated change. If present form
of education system required any change then we really required innovation. Innovation is the
path that makes the change possible. Innovation are said to have certain characteristics.
Innovation can’t go in isolation. There should be widespread acceptance, and then only it
becomes successful. These are the few characteristics of innovation-
(i) Something new which results in the improvement of a system
(ii) Best suited for predetermined goals
(iii) Improvement in the existing system
(iv) Positive in nature
(v) Capable of making things familiar
Quality Indicator:
In the field of education system, quality indicator has mainly three variables i.e. input,
process and output.
(A) Input Indicator: In context of management institutions, input indicators are nothing but
the resources. Resources consist of physical, academic and financial employed by the
institution to produce the good quality of products. Thus it is very much required to give
more emphasize on input indicator, so that the quality which we required in our
education system can be maintained. There are some input indicators in education which
require more attention to maintain the quality. Those input indicators are:-
INCON - XI 2016 1
(i) Academic resources or teacher/faculty
(ii) Administrative support
(iii) Infrastructure
(iv) Physical resources
(v) Financial resource
All input indicators have equally important role to play but one of the most important
indicator is academic resources or Teacher / Faculty.
Academic Resources:
The academic resources constitute of Teacher / Faculty, students curriculum etc. In
academic point of view faculty have different role to play. He has to carry out teaching –
learning process in class, assess student’s performance, research work, Students Guide in
research etc. Apart from academic role, they have many other roles to play. They have to
support in admission process, they have to support in admin work, they have to support in
sports activity, they have to organize so many events time to time etc. But here we have to
clear our vision that in spite of all other duties, our primary duty is teaching. In our education
system, faculty are more important quality indicator as they are genuinely responsible for
enhancement or deterioration of our quality of education system. To ensure the quality of
education the institutions must consider these points –
 There is a need to attract, retain and motivate the quality and experienced faculty.
 Transparency should be maintained in recruitment of faculty.
 Proper salary, timely promotions, provision of professional growth and recognition
should be ensured.
 As far as possible they should be utilized mainly for academic purposes only, they
should be allowed to devote more time in quality of research work.
 They should be motivated and allowed to attain various training programmes i.e.
seminar / conference, workshop, FDP etc.
(B) Process Indicator:
This indicator indicates the type of environment we are providing to get the quality of
output. It is related with operational as well as management point of view. Efficient use of
technology comes under this indicator. Apart from this there are some more points essentials
for this indicator:-
 Infrastructure for teaching learning process.
 Access for use of library books, journals and other resources including e-resources for
both students as well as faculty.
 Student’s assessment mode in terms of period i.e. monthly, quarterly, annually and type
of assessment like theory, practical, research work etc.
 Administration support for both students and faculty.
(C) Output Indicator:
The output we get is what we give input. This aspect includes quality as well as quantity.
Output can be assessed by internal as well as external. These are some indicators which
ensured the quality of output indicator-
 Number of pass out.
INCON - XI 2016 2
 Level of academic achievements.
 The nature of skill and competencies achieved by the students.
 Research standard.
 Nature of institutions – community interface.
 Students private and social rate of returns in education system.
Objectives of Study:
 To study important performance aspects of faculty of management institutions at various
level i.e. Assistant Professor, Associate Professor, Professor and Director level.
 To study impact on the overall quality improvement of the management institutions.
 To study impact on students performance by improving the Innovative Quality Indicator
in Management Faculty.
Hypothesis:
To find out whether by improving the quality of faculty has any impact on student’s
performance.
Scope of Study:
This research provides focus on what management institution can do to improve
teaching quality and the quality provision of the programme.
Research Methodology:
Methodology of the study:
 Various tools used to collect the primary data.
 Primary data collected to examine the Innovative Quality Indicator.
 Data analysed by statistical method.
Sample Size:
A total of 40 samples collected from the Faculty of 8 Management Institutes in Pune at
Professor, Associate Professor and Assistant Professor Level.
Research Tool
 Questionnaire
 Interview and discussion
 Contact method
 Observation
Data Analysis and Interpretation:
Q.1. Designation.
Respondent Assistant Prof. Associate Prof. Professor
Number 16 13 11
INCON - XI 2016 3
With above Table and Chart we observe that 28% Professor, 32% Associate professor
and 40% Assistant professor participated in this study.
Q.2. Gender
Respondent Male Female
Number 18 22
Above chart shows that a 55% of Faculty who participated in this study are Female and
45% is Male.
Q.3. In your opinion, to what extent Senior & Experience Faculty have greater role as a
mentor to facilitate the faculty in making their task more effective.
Respondent To a Great Extent To a Large To Moderate extent To Some extent Not at all
extent
Number 16 14 6 4 0
In above table we observe Mean value = 4.05 which indicate the senior & experience
Faculty have greater role to play in improving the quality of Faculty so that their task can be
made more effective.
Q.4. Do you agree that Senior and Experience Faculty are the backbone of the
Management Institutions?
Respondent Fully agree Agree Somewhat agree Disagree Fully disagree
Number 14 13 11 2 0
Mean value = 3.975 which indicate that Faculty are agreeing about status of senior &
experience Faculty in Management Institutions.
Q.5. In Your opinion, to what extent Training Programme for Faculty needs to be
strengthened to facilitate the Faculty in making their task more effective.
INCON - XI 2016 4
To a Great To a Large To Moderate To Some Not at

Respondent Extent extent extent extent all
Number 15 14 7 4 0
From the above table we observe Mean Value = 4 which indicates Faculty are
believing in to large extent that training programme for Faculty needs to be strengthened to
facilitate the Faculty in making their task more effective.
Q. 6. In your opinion, to what extent reducing additional responsibility can facilitate the
Faculty in making their task more effective.
Respondent To a Great To a Large To Moderate To Some Not at
Extent extent extent extent all
Number 1 9 10 14 6
Here from the table we observe Mean value = 2.625, lies between to some extent and to
moderate extent, which indicates additional responsibility have very limited role to play. If it
is reduced then also moderate help for faculty in making their task more effective.
Q.7. In your opinion, to what extent Qualification of Faculty have any role to facilitate
the Faculty in making their task more effective.
Number 19 17 4 0 0
Mean value = 4.375 which shows that qualification of Faculty have greater role to
facilitate the Faculty in making their task more effective.
Q. 8. In your opinion, to what extent Skill of Faculty have any role to facilitate the Faculty in
making their task more effective.
Number 9 19 8 4 0
From the above table we observe Mean value = 3.825 which indicate skill have large
role to facilitate the Faculty in making their task more effective.
Q.9. To what extent do the teaching skill indicates the quality of a Teacher?
Number 22 16 2 0 0
From the above table we observe Mean value = 4.5 which strongly support the teaching
skill as one of the good quality indicator in Faculty.
Q.10. To what extent you agree that the quality, Entrepreneurship Skill could be
Innovative Quality Indicator for a Faculty.
Number 14 12 12 2 0
From the above table we observe the Mean value = 3.95 which indicate that respondent
agree that Entrepreneurship Skill could be Innovative Quality Indicator for a Faculty.
INCON - XI 2016 5
Q.11. To what extent you agree that the quality, Problem Solving Skill could be
Number 22 15 3 0 0
We observe from the above table, Mean value = 4.47 which indicates respondent
agreeing that Problem Solving Skill could be Innovative Quality Indicator for a Faculty.
Q.12. To what extent you agree that the quality, Social engagement and attitude could be
Number 15 11 14 0 0
From the above table we observe the Mean value = 4.02, which indicates that the
respondent are agree with social engagement and attitude could be Innovative Quality
Indicator for a Faculty.
Q.13. To what extent you agree that the quality, Collaborative approach of Teaching
could be Innovative Quality Indicator for a Faculty.
Number 5 11 24 0 0
From the above table we observe the Mean value = 3.52 which indicate that the
collaborative approach of Teaching could be Innovative Quality Indicator for a Faculty.
Q.14. To what extent you agree that the quality, Observe students, discover their interest
and meet their orientation could be Innovative Quality Indicator for a Faculty.
Number 24 16 0 0 0
From the above table we observe the Mean Value = 4.6, which indicates that
respondents are fully agreeing with quality, Observe students, discover their interest and meet
their orientation could be Innovative Quality Indicator for a Faculty.
Q.15. Do you agree that Innovative quality of Faculty can enhance student’s
performance?
Number 38 2 0 0 0
From the above table we observe the Mean value = 4.95 which indicate that the
respondents are fully agree and think that Innovative Quality of Faculty can enhance student’s
performance.
Q.16. Do you think that quality of our Faculty has direct link with their quality of
teaching?
Respondent To a To a Large extent To Moderate extent To Some extent Not at all
Great
Extent
Number 11 18 11 0 0
From the above table we observe the Mean value = 4.0, which indicates that to a large
extent respondent agreeing that the quality of Faculty has direct link with their quality of
teaching.
INCON - XI 2016 6
Q.17. Do you think that quality of our Faculty meets the global standard?
To a Great To a Large To Moderate To Some Not at

Respondent Extent extent extent extent all
Number 0 8 26 6 0
From the above table we observe the Mean value = 3.05, which indicates that quality of
our Faculty have moderate standard compared to global standard.
Findings
 Faculty are fully agreeing that an Innovative Quality of Faculty can enhance student’s
performance.
 Senior and Experienced Faculty have greater role to play in enhancing the quality of
Faculty and which interns enhance their performance.
 There is a strong need of training programme for Faculty which can facilitate their task
more effective.
 Qualification and teaching skill indicates good quality of a Faculty.
 Faculty are agreed upon on some of those quality like, Entrepreneurship skill, Problem
solving skill, Social engagement and attitude, collaborative approach of teaching and
Observe students, discover their interest and meet their orientation could be Innovative
quality for a Faculty.
 Quality of Faculty have direct link with their quality of teaching.
 In terms of global standard, our Faculty quality meets at moderate standard.
Limitations
 The study is confined to Management Institutions located in Pune, Maharastra and hence
can’t be generalize for Institutions located in other part of State or country.
 Result is based on the response given by Faculty of Management Institutions only.
 The study is regarding quality of Faculty which can’t be consistent for a longer period.
Conclusion
Management Faculties are great assets for the educational Institutions and so for the
education system and for society. Hence various quality improvement programmes must be
conducted by senior and experienced Faculty at certain intervals and all Faculties must be
compulsorily participated to improve and maintain their quality, so that they can compete and
meet the global standard.
REFERENCE:
[1] Kochar, S. K. (1981), Pivotal Issues in Indian Education, Sterling Publisher Pvt.Ltd. pp
44-56.
[2] Naik, J. P. (1982), The education commission and after, Allied Publishers Pvt. Ltd. New
Delhi. Pp 101-145.
[3] Power, K. B. (2002), Indian Higher Education, Concept Publishing House, New Delhi pp
88-96.
[4] Quality and Relevance in Higher Education- Special Issue, University News 46, Nov.
17-23, 2008, New Delhi.
INCON - XI 2016 7
[5] Rao, V. K. (1999), Trend in Education. Vol. III, Rajat publication Delhi, pp 925-960.
[6] Sambrani, Vinod N. (2009), Quality assurance in higher education, the role of NAAC,
University news- A weekly journal of Higher Education, AIU,47 (44), Nov. 2-8, pp 13-
18.
[7] Thorat, S. (2006), Higher Education in India, Emerging Issues Related to Access,
Inclusiveness and Quality.
[8] Venkarasubramanian, K. (1982), Issues in Education, Macmillan India Ltd. pp 78-88.
[9] Walter, S. Manroe (1952), Teaching learning theory and Teacher Education. pp 101-117.

INCON - XI 2016 8
Study on Best Talent Management Practices of Selected Foreign MNC’S in

Pune Region
Dr. (Mrs) Asha Pachpande Mr. Punamkumar Hinge,
Director & research guide PhD-Research Student (HR)
ASM’s IBMR, Chinchwad, Pune ASM’s IBMR,Chinchwad,Pune
punam_hinge@yahoo.co.in
ABSTRACT:
Talent Management has remained a number one concern of all top organizations
in the world now a day. This is because in order to be able to take advantage of the
changing and growing markets, organizations must have good people in place. Having
good people implies that organizations must know how to identify, manage, develop,
keep and get the best out of their good people.
One of the biggest challenges facing companies all over the world is building and
sustaining a strong talent pipeline. Not only to do businesses, need to adjust to shifting
demographics and work force preferences, but they must also build new capabilities and
revitalize their organizations — all while investing in new technologies, globalizing their
operations and contending with new competitors.
It is found that new generation employee what is called as Y- generation employee
are different than traditional X-employee in case of living style and expectations.
Foreign MNC’s have worked to match Talent management practices in their
organizations at par of new Y-generation employees expectations.
This research paper focuses on study of best talent management practices of
selected foreign MNC’s in Pune district and to understand their strength in managing
the people specially Y-generation employee effectively.
Keywords: Talent Management in Foreign MNC’s, Best Talent Management Practices,
new generation employee talent management.
1. Introduction
It is found that new generation employee what is called as Y- generation employee are
different than traditional X-employee in case of living style and expectations. They look for
novelties ,have deliberate career building, are always influenced by brand name, demands
immediate feedback, finds important to be involved in decision making, appreciate value
generation, more loyal to own career than company, lives in www environment where he is in
touch with worldwide opportunities and options available to him and he is always driven by
work experience.
Talent Management has remained the number one concern now a day of all top
organizations in the world right now. This is because in order to be able to take advantage of
the changing and growing markets, organizations must have good people in place. Having
good people implies that organizations must know how to identify, manage, develop, keep and
get the best out of their good people.
One of the biggest challenges facing companies all over the world is building and
sustaining a strong talent pipeline. Not only to do businesses need to adjust to shifting
demographics and work force preferences, but they must also build new capabilities and
INCON - XI 2016 9
revitalize their organizations — all while investing in new technologies, globalizing their
operations and contending with new competitors. Foreign MNC’s have worked to match
Talent management practices in their organizations at par of new Y-generation employees
expectations.
2. Objectives of the Research
1. To find out Best talent management practices in the foreign MNC’s in Pune district area.
2. To see strength of MNC’s in managing new generation (Y) employees.
3. Research Methodology:
The necessary data required to study is collected from primary Sources.
Type of Research
Quantitative & Qualitative research both.
Data Sources:
i) Primary Source:
Employees working in selected Foreign MNC’s from Pune district.
Research Instruments:
The research instruments for the study were through the following method:
Questionnaire method (53 questionnaires on various aspects-of talent management) and
personal interactions with the number of employees for getting quantitative & qualitative data
for conducting research working in different organizations. Data was collected through Google
forms as well as through direct personally filled forms.
Sampling Design
Population
Pune District Area
Sampling Technique
Non-probability Convenience sampling
(only those employees who are permanent and has good experience were chosen to get
the data accuracy).
Sample Size:
-For Primary Data:
28 employees- (2 employees from one company) from total 14 Foreign MNC’s from
Pune District only. Which consists of-
Sr.no Foreign MNC’s Sr.no Foreign MNC’s
1 Congnizant,hinjewadi 8 Sigma Electric,chakan
2 Daimler Chrysler,chakan 9 Wirtgen India Pvt Ltd,Hadapsar
3 Syntel India 10 John Deere tractor,sanaswadi
4 G.M corporation 11 Volks Wagen India,chakan
INCON - XI 2016 10
Sr.no Foreign MNC’s Sr.no Foreign MNC’s
5 CAPGEMINI,Talwade 12 Symantec,baner
6 WNS india Viman Nagar 13 SIEMENS PLM,hinjewadi
7 Maersk india,Vimannagar 14 fuzitsu,talawade
Data Analysis
It is based on mean value obtained from the analysis of Likert scale from the total of 53
Questionnaires responses. Other statistical tests have not been considered as its ongoing
research and mean value is sufficient at first level to see the fulfillment of the objectives. Each
quantitative question was noted with qualitative answer and reason from employee through
personal interview and discussion to get qualitative data.
4. Limitations
1. This study is limited to Pune District Only
2. As it’s an ongoing research analysis, it is based on mean value obtained from the
responses only and qualitative answers got through personal interviews and discussion.
3. As Questionnaire responses (quantitative and qualitative) and analysis for mean value is
too long, it has not shown on paper (Due to page limit only mean value is mentioned).
5. Findings of the Research (Quantitative)
(based on the mean value of the 53 Likert scale(Questionnaire) Responses).
1) Levels of satisfaction about the benefits (salary review) given by the company found
more in foreign MNC’s {Mean value for MNC is 4.3(satisfied-fully satisfied) .
2) Levels of satisfaction about the benefits [leave policy] given by the company found more
in foreign MNC’s {Mean value for MNC is 4.5(satisfied-fully satisfied).
3) Levels of satisfaction about the benefits [health care benefits] given by the company
found more in foreign MNC’s {Mean value for MNC is 4.7(satisfied-fully satisfied).
4) Levels of satisfaction about the benefits [Medical insurance package] given by the
company found more in MNC compared. {Mean value for MNC is 4.5(satisfied-fully
satisfied}.
5) Levels of satisfaction about the benefits [Retirement benefits. /Retirement plan] given by
the company found more in MNC’s {Mean value for MNC is 3.8 (Somewhat satisfied-
satisfied).
6) Levels of satisfaction about the benefits [Company saving plan] given by the company
found more in foreign MNC’s. {Mean value for MNC is 3.5 (Somewhat satisfied-
satisfied) .
7) Levels of satisfaction about the benefits [Holiday entitlement] given by the company
found more in foreign MNC’s { Mean value for MNC is 4.3(satisfied-fully satisfied) .
8) Levels of satisfaction about the benefits [Competitiveness in my salary] given by the
company found more in MNC’s {Mean value for MNC is 4.5(satisfied-fully satisfied) .
9) Levels of satisfaction about the benefits [Share/stock option plan] given by the company
found more in foreign MNC’s. {Mean value for MNC is 3.7 (Somewhat satisfied-
satisfied).
INCON - XI 2016 11
10) Levels of satisfaction about the benefits [Compared to Job market] given by the
company found more in foreign MNC’s {Mean value for MNC is 4.2(satisfied-fully
satisfied).
11) Levels of satisfaction about the benefits [Maternity/paternity leave] given by the
company found more in foreign MNC’s{ Mean value for MNC is 4(satisfied).
12) Levels of satisfaction about the benefits [Professional association membership] given by
the company found more in foreign MNC’s.{ Mean value for MNC is 3.8 (Somewhat
satisfied- satisfied).
13) Levels of satisfaction about the benefits [The staff canteen] given by the company found
more in foreign MNC’s { Mean value for MNC is 4.3(satisfied-fully satisfied) .
14) Levels of satisfaction about the benefits (Your hours of work given by the company)
found more in foreign MNC’s compared to Domestic companies. {Mean value for MNC
is 4(satisfied).
15) Levels of satisfaction about [The team they work] in the company found more in foreign
MNC’s {Mean value for MNC is 4.3(satisfied-fully satisfied).
16) Levels of satisfaction about the [Management to whom you are responsible] in the
company found more in foreign MNC’s{ Mean value for MNC is 4.3(satisfied-fully
satisfied) .
17) Levels of satisfaction about the benefits [Child care costs/arrangement] given by the
company found more in foreign MNC’s {Mean value for MNC is 4(satisfied).
18) Levels of satisfaction about the [Job security] in the company found more in MNC’s
{Mean value for MNC is 4.3(satisfied-fully satisfied) .
19) Levels of satisfaction about the [Educational benefits] given by the company found more
in MNC’s. {Mean value for MNC is 4.2(satisfied-fully satisfied) .
20) Levels of satisfaction about the benefits [subsidy on loan(Home/vehicle/education)]
given by the company found more in foreign MNC’s. {Mean value for MNC is 3.8
(Somewhat satisfied- satisfied) .
21) Foreign MNC Companies employees agreed more that for total benefits program given
by company meets their needs.{ Mean value for MNC is 4(Agree).
22) Foreign MNC employees benefit program is more competitive than domestic companies
employees in the industry. {Mean value for MNC is 3.2 (better than most-one of the
best).
23) Foreign MNC employees are fairly compensated for the work they do. {Mean value for
MNC is 4.7(Agree-Fully agree).
24) Foreign MNC’s employees always feel more challenged in their current position. {Mean
value for MNC is 4.3(Agree-Fully agree).
25) Foreign MNC’s employees are able to get more Job changes in their company (in terms
of transfer, job rotation, department change, etc.) {Mean value for MNC is
3.8(Sometimes-often) .
26) Foreign MNC’s employees have feeling that their companies have more fair promotion
policies. {Mean value for MNC is 4(Agree).
27) There are better policies at Foreign MNC’s that encourage career growth and
development opportunities {Mean value for MNC is 4.3(Agree-Fully agree).
INCON - XI 2016 12
28) More Career advancement opportunities are possible at foreign MNC’s{Mean value for
MNC is 4.2(often-Always).
29) Foreign MNC Companies allows and encourages to their employees to pursue
qualifications which they feel suitable for employee’s personal growth and also allow
them to take leaves for examination. {Mean value for MNC is 4(often).
30) Foreign MNC’s takes more initiatives for sponsoring their employees to pursue
additional qualification and reimburse for the same. {Mean values for MNC is
3.3(sometimes-often).
31) Foreign MNC’s encourages more to their employees to stay for long life and create such
an opportunity (career planning) for promotions to motivate them{values for MNC is
3.8(sometimes-often) .
32) Foreign MNC Companies policy of increment is more adequate, fair and competitive
enough with competitors in the same job market. {Mean value for MNC is 4(Agree).
33) Foreign MNC’s employees are rewarded when they go above and beyond what is
expected in their job.{ Mean value for MNC is 4(Agree).
34) Training & development satisfaction level about Quality of training (material) is quiet
more in MNC’s. {Mean value for MNC is 4.3 (satisfied- fully satisfied)
35) Training & development satisfaction level about Effectiveness of the instructor is more
in MNC’s {Mean value for MNC is 4.2 (satisfied- fully satisfied).
36) Training & development satisfaction level about applicability of the training to
employees job is more in foreign MNC’s {Mean value for MNC is 4.3 (satisfied- fully
satisfied).
37) Training & development satisfaction level at MNC companies to promote employees to
attend outdoor training program and invest for the same is more.{ Mean value for MNC
is 4.3 {(satisfied- fully satisfied).
38) Overall level of satisfaction with the training activities at MNC’s is high { Mean value
for MNC is 4.3 (satisfied- fully satisfied).
39) Foreign MNC’s invest more fairly in training and development activities.{Mean value
for MNC is 4.5(Agree-fully agree).
40) Organizations culture at MNC’s are found quiet good to stay for long-term. {Mean value
for MNC is 4.8 (very well-Extremely).
41) Culture of MNC organizations found more healthy {Mean value for MNC is 4.7
{(somewhat likely-very likely).
42) Foreign MNC’s management more frequently allows their employees (take suggestions)
to participate in management decisions in their area or other area of the company {Mean
value for MNC is 3.3 (sometimes-often).
43) Foreign MNC’s employees say that their companies have best work-culture which they
know in their area/field {Mean value for MNC is 4.5 (very well-Extremely well).
44) It is found that foreign MNC’s employees are more likely interested to recommend their
company to a friend, relatives to work .{Mean value for MNC is 4.7 (somewhat likely-
very likely) .
45) Foreign MNC’s employees are treated more fairly at the company {Mean value for MNC
is 4.2 (Agree-fully agree) .
INCON - XI 2016 13
46) Foreign MNC’s employees feel more comfortable going to their managers with any
issues and/or concerns.{Mean value for MNC is 4.5(Agree-fully agree) .
47) Foreign MNC’s employees agree that their managers are a good coach/mentor}.{Mean
value for MNC is 4.7(Agree-fully agree).
48) In Foreign MNC’s it is found that Management provides adequate information about the
company to their employees.{Mean value for MNC is 3.5(sometimes-often).
49) There is more effective communication within department in MNC companies { Mean
value for MNC is 4.7(often-always).
50) Overall Foreign MNC companies employees work experience at the company is more
satisfying and rewarding. {Mean value for MNC is 4.2(Agree-fully agree).
51) Foreign MNC’s employees receive right amount of recognition and acknowledgement
from their manager {Mean value for MNC is 4.2(often-always).
52) Overall foreign MNC’s employees are more satisfied with companies personnel
policies.{Mean value for MNC is 4.7 (Moderately satisfied- Extremely satisfied).
53) Overall foreign MNC’s employees are more satisfied with company as a place to work
as compared to other domestic companies they know {mean value for MNC is 4.8
(Moderately satisfied- Extremely satisfied).
6. Research Findings (Qualitative)
Selective Talent Management Practices Used By MNC’S For Talent Management
6.1. Attracting Right Talent To Company/Creating Talent Brand.
Multinational Companies came to know that in competitive edge they require to be able
to attract good talent to suit their needs. In case of generation-Y MNC’s think about their need
and consider them as consumer as compared to X generation employee. They have made
strategies to attract good talent by following means.
 Companies participates in job fairs organized by university/colleges,
 Executives/Managers/professionals from companies are encouraged to teach students
and participate in seminars/conferences/forums organised by university/colleges.
 executives are encouraged to have on advisory board of universities and colleges of
repute.
 Many managers are already teaching in various universities/Colleges as a guest lecture
helps to make propaganda for the company.
 Companies offer an opportunity to participate in corporate events of different kinds to
students. These companies have opened gate for them.
 MNC’s allows students for plant tour and let them learn the attractive environment
,system, in the company. e.g Volkswagen have dedicated person appointed to manage
such plant tour for students, parents, clients, visitors. And the result is potential students
come to know about company as it become more popular amongst the students ,more
potential students eager to apply such MNC’s.
 Stories of employees who feel proud to be employee of the companies and their
experience are collected and shared amongst the employees and briefed to potential
talent to attract best talent at recruitment process.
Thus MNC’s create Talent Brand where new generation employees (Y) get attracted
and eager to work in such companies.
INCON - XI 2016 14
6.2 Contacts with the Leaving Employees
Return on investment on training given to employee takes long time but many talented
employees of new generation(Y generation) are mobile in changing the jobs. Also making job
contracts with them is a negative message to new generation employee. MNC’s are smart,
they know they have acquired enough skills during work and training period. They keep
contacts with such employees through emails, sending newsletters regarding company’s
financial condition, new product launch , new initiatives taken etc .And they are welcomed
back means keep door opened to acquire higher position in future to get the benefit of
external expertise as well internal expertise which they were possessing.
6.3 Open Career Options:
MNC’s have added advantage over domestic companies in providing career paths. They
don’t force to work in one area where employee has joined but encourage him to transfer or
relocate in different profile where he finds suitable in future. In this way talented employee
fulfill their needs in career development path of a profile where he feels he has potential and
can prove best.
MNC’s also keep option open to work in Domestic Places or Abroad(in
projects/subsidiaries/registered offices abroad) but don’t force to choose either. In these way
employees are satisfied with their career goal. They keep open stay abroad for Y generation
employees to work on abroad projects/assignments who are more eager to take such
assignments.
6.4 Commitment to Talent Selected Who Manages their Own Projects
MNC’s keep promises for replacement/promotion/Job enhancement to selected talent
who manages their own project. Such projects are evaluated by senior management and
conveyed to top management and thus keep promise. It avoids to miss talented people who
have acquired skills and can manage their project on their own and posses excellent leadership
qualities.
6.5 Allowing Talent to Work on Strategic Project
MNC’s have approach to allow selected talent to work on live strategic project by
forming International Team under coach(giving attention to diversity nationality, sex, field,
profile etc), best projects are rewarded by the top management. It helps talented employee to
show their potential and feeling of participation in innovation work conducted by company.
MNC’s have found this strategy best to retain such talented employees who have potential of
innovative ideas.
6.6 Action Learning Through Talent Management Programs
MNC’s don’t believe just on organizational training, rather they allow on the job training
where participants can experience and learn real life situation and get learning opportunity.
Such learning make them to work independently in their areas, create an ability of self-
development and self-decision making.
6.7 Networking Methods to Develop Talent
MNC’s have understood the importance of networking of people to get more success in
business and they promote and form different networks as follows.
INCON - XI 2016 15
a. Networking with the senior managers: Some companies are formed networking of
talent with senior managers who participate in their training program also to establish
contacts.
b. Networking among the Talent worldwide working in different subsidiaries: Some
MNC’s have formed networking in talent who are working in different geographical area
domestic as well as worldwide to get contact and share best practices and suggestions.
c. Facilitating female network: Some MNC’s have formed Female network in the
company to enhance their work environment and take advantage of their talent in the
organization.
d. Networking of sales people and Client: Some MNC’s have formed networking of sales
people and representatives of Clients for mutual development programs.
6.8 Better Communication At Strategic Level
Some MNC’s are of opinion that, it is important to have communication amongst
important talent of the company regarding strategic planning to make them aware and increase
confidence amongst them. By increasing communication at strategic level employees keep
motivated to take challenge. For this they have taken initiatives like meeting of Senior
Managers with selected talent from lower management, keep them informing with companies
strategies through email.
6.9. Focus on Workforce Agility
Most of MNC’s focuses on workforce agility where there employees are able to change
with changing global environment to suit sudden change in marketing, technology, customer
need etc. where they are able to cope up with the changes and can sustain in such market
force. For such reasons MNC’s have Talent Agility programs to suit different changes in
business environment. Through such training programs they develop agility in employees.
They also focuses on agility test conduction at the time of recruitment and give enough chance
for selection those are more agile in nature.
6.10 Bonus Scheme to Senior Managers to Identify Talent for Future Leadership
Some MNC’s have Bonus scheme to Senior managers to identify talent in their team
which have potential to become a part of future leadership in company, which can be trained
,promoted on responsible positions. As bonus is attached, Managers are interested in
continuous monitoring and development of these potential talents. In such career management
system Higher level manager keep checking whether selected talent is enough capable to move
to other positions rather than on random selection and concentration can be made on target
talent who is best suitable to move to other positions.
6.11 Organisation Cultural Change Through Talent Training
Some MNC’s have kept training as a part of talent management program to train in
leadership skills as well as skills and attitudes which require to change the culture of the
organization expecting that talent to work as a catalyst in organizational change.
6.12 Multi-Skilling
Most of the MNC’s have multi-skilling as a talent management program where selected
talents are rotated to different departments to get the skill acquired from that field under
INCON - XI 2016 16
external coach and thus multi-skilling increases in selected talents who are then used as a
future leadership positions in the organization. Senior level managers are involved in
monitoring and judging the performance of each talent for acquiring different skills in the
organization. Also multi-skilling is done at different country level plants of MNC’s where they
also get foreign language training .Such talents are then capable to handle International
projects as they posses multi-skilling from diversified areas of business.
6.13 Evaluation and Development through External Consultants of Global
Level.
Many MNC’s have system of evaluation and development of talent selected (mostly 10 -
20 %) with the help of external consultants of global level where they conduct several skills
tests required at global level and evaluate weakness and strength of the talent and gap needed
to fill( to develop skill). They communicate this to companies and further talent programs are
run with the help of these external consultants to develop the employee. For such talent
management programs many MNC’s have set there external assessment centers with the help
of external consultants.
6.14 Organisation of Global Events:
Many MNC’s organize Global events where high potential talent participate here they
can build contacts, take seminars, share knowledge, bring innovative ideas .This brings talent
on global platform and this identified talent then can be promoted to international positions
where they can work better.
6.15 Flexible Work Time
Some MNC’s have flexible work time structure for some employees who are on project
work outside or inside or who are working at clients end. They have no restriction on time in
and out only condition is to finish it within stipulated time .Such things get more freedom and
motivation to employees to work in such companies.
6.16 Parental Leaves
Many MNC’s are offering parental leaves to their male employees for 1 to 2 months to
take care of their family which motivates them to work in the company.
6.17 Scholaraships/Fundings for Higher Education
Many MNC’s provides scholarships/funding for Higher Education to employees to study
in referred Universities/Colleges including abroad. Which they latter can promote on higher
positions.
6.18 Trainings Abroad
Most of the MNC’s keep training programs abroad for short duration to acquire skill of
global business importance. That also motivates employees to participate positively in training
programs .Such employees trained contribute better in terms of innovation, productivity in
future.
6.19 Incentives to Quality Circles
MNC’s have focused on formation of quality circles(having 6-10 members in one
team).They are promoted and financed to work on productivity/technology problems and
INCON - XI 2016 17
improvements in their own area and good kaizen(continuous improvement) is appreciated and
awarded by top management. In this way quality circles make contribution in better
productivity, innovation, workplace betterment and continuous development in their areas of
work.
6.20 Abroad Holiday Packages to Achievers
It is found that MNC companies pay for foreign holiday packages to their selected
employees who have performed better in their areas.
6.21 Best Salary Package
It is found that salary range is more in foreign MNC’s compared to domestic
companies.
6.22 Share/Stock Option Plan
MNC Companies like Symantec provides share/stock option plan for their employees.
Through stock option plan employees get feeling of being treated as partner in the company
and it helps to get high moral in workplace.
6.23 Excellent Food and Snacks At Canteen Of Employees Choice
It is found that foreign MNC’s provides more varieties and options when it comes about
food and snacks at concessional rate. Also no restrictions are made by company on timings;
employees are free to go at any time to avail canteen facilities.
6.24 Five Days Working
Most of the foreign MNC’s provides two days weekly off (Saturday /Sunday off) that
makes employees happy, satisfied and more productive.
7 Conclusions
It is found that new generation employee what is called as Y- generation employee are
different than traditional X-employee in case of living style and expectations. Foreign MNC’s
have worked to match Talent management practices in their organizations at par of new Y-
generation employee’s expectations.
From the above findings it is found that foreign MNC companies have more inclination
towards having innovative and motivating talent management practices compared to domestic
companies. Foreign MNC’s understand the needs of employees and try to match
organizational interest with employee’s personal interest. Foreign MNC’s believes in
Hospitality of employees. MNC’s are having priority towards employees and believe that
company success ability depends on employees interest and motivation level at company and
that is why they focus more on employee’s satisfaction, their personal growth, long term
employability, benefits, fulfillment of desires, etc. MNC’s like Wirtgen India Pvt Ltd
(employees working at service/customer end/supplier end), provide work freedom policies like
employees work directly from home/at suppliers end without reporting everyday to company.
Companies like Symantec India has given stock option plan to their employees to fill
employee as a partner in the company. Five days/week working at MNC’s always keep their
employees productive, healthy, interested and happy at work place and in their personal life.
Training activities at abroad for employees, unlimited varieties at canteen for food, flexi work
INCON - XI 2016 18
timings, freedom at work ,tools like management by objectives(not by time worked),
competitive salary in the market, sponsoring for higher education for employees and investing
on it, excellent employee management relation, value based culture, air tickets for company
work, foreign holiday package entitlement, fair promotion policies, Job security, excellent
salary reviews, stock/share option plan, family day, cultural activities, sports activities, for
employees are some innovative talent management practices at Foreign MNC’s working in
Pune area. Compared to them domestic companies lacks in such excellent practices. Indian
Domestic companies require having enough competitive talent management practices to
develop, sustain in the global market at par Foreign MNC’s.

INCON - XI 2016 19
H R Challenges & Strategies of 21st Century in Indian Power Generation

Industry – A study from Employers/Executives Perspective
Dr Ashok Verma Dr. K.C.Goyal
Technical Officer Professor of Management,
Nuclear Power Corporation of India Ltd, ASM’s IIBR
Rawatbhata ( Kota) site,India Pimpri, Pune, India
Email: ashokveraaim@gmail.com Email: goyal.kailash333@gmail.com
ABSTRACT:
Success of any organization depends upon managing effectively its human
resources as among all the resources only human resources are living being with
unlimited potentiality. Changes taken place in the last decade of 20th and first decade of
the 21st century has made the managing the human resources all the more challenging.
Researchers through extensive literature review have identified 16 major and minor
challenges like globalization, skill shortage, attrition rate etc. in managing human
resources. To conduct this study researchers have selected four power generating units.
From each unit a sample of 20 employees has been selected. Findings of study show that
in the opinion of respondents skill shortage is a greatest challenge followed by
globalization, rate of attrition, increasing employees expectations and ageing work
force. Executives working in these power generating units found using different
strategies to deal with these challenges effectively.
Key Words: Skill shortage, Attrition, Globalization, ageing workforce, Strategies.
Introduction:
Human resources are the most important resources for any organization upon which the
existence, survival and success depend. Any organization can excel its competitors if it
succeeds in managing its human resources effectively and efficiently and vice-versa is also
true. However, over the years managing and utilizing human resources efficiently and
effectively has become a challenge owing to nature of human resources being living and
having unlimited potentialities. Power sector is the backbone of the nation’s economy as
progress of the economy roll with the aid of power and therefore, managing of human
resources in power sector units become all the more important to efficiently harness and utilize
the power resources of the country. In the past few years, especially after advent of
Liberalization, privatization and Globalization, managing human resources in power sector
units has become more challenging. The present study has been undertaken to study the human
resource challenges as perceived by executives and strategies adopted by them in managing
the power sector units.
Review of Literature:
Globalization is often portrayed as a new stage in world development. (Sparrow et al
2004),which is characterized by intensified competition and continuing technological
innovation, which have emphasized the importance of product quality and customer care
which in turn has increased the emphasis on people management.(Hucysnki et al 2002). To
meet some of the challenges posed by intense competition organizations have been downsized,
delayered, decentralized and are less hierarchical in nature. These changes have subsequently
INCON - XI 2016 20
lead to many developments in HRM, as employers have to cope with the challenges posed by
a competitive global economic environment. (Redman et al 2001),organizations are
increasingly turning to the unique contribution provided to them by their human resources as a
source of competitive advantage(Wright et al in Morley et al 2004). Organizations and
institutions are increasingly realizing the importance of human competitiveness as essential to
organizational survival and economic progress. There is also a growing belief that if
organizations have to survive and thrive in a global economy, they require world class human
resource (HR) competencies and the processes for managing them.(Khandekar et al 2005) and
this is in line with the (RBV) perspective of Strategic HRM, which states that employee
knowledge, skills, talents and know-how are the central source of organizational performance,
human resources are more likely to produce competitive advantage because they often are
truly rare and can be more difficult for competitors to imitate(Jackson et al 2004) and that the
effective management of human resources is critical to obtaining organizational success.
Objectives of the study:
1. To study the Human Resource Challenges being perceived by executives managing
power sector units.
2. To study the strategies being adopted by these executives to meet these challenges.
3. To tender the suggestions to effectively counter these challenges.
Scope of the Study:
The scope of the present study is confined to study the human resource challenges being
perceived and faced by the executives working in power sector units. For this purpose
researcher has selected four power sector units generating different kind of power as follows:
1. Rajasthan Atomic Power Station, Rawatbhata.
2. Kota Super thermal Power Station, Kota,
3. Jawahar Sagar Hydro Power Plant, Kota,
4. Anta Gas Power Project, Anta, Kota.
Period of study:
The study was conducted between 1st August to 31st October, 2015.
Research Methodology and Design:
 Type of Research: The present study is exploratory at its initial stage followed by
analytical and descriptive study.
 Collection of Data: Data for this study have been collected by using primary as well as
secondary sources.
 Collection of primary Data: Primary data have been collected by using questionnaire
method, interview technique and observation method. For collection of primary data
sample technique has been used details of which are as follows:
 Universe: All executives working in power generating units included in the study.
Sample:
 Sample Frame: All executives working in power generating units included in the study.
 Sampling Unit: Executives
 Sample size: 80 executives ( 20 executives selected from each power generating unit
included in the study).
INCON - XI 2016 21
 Sampling Type: Non Probability sampling.
 Sampling Technique: Convenience and snowball sampling.
 Collection of Secondary Data: Secondary data have been collected from books,
Journals, periodicals, Magazines, news papers, websites, house journals of power
generating units.
 Analysis and Interpretation of Data: Collected data have been classified, tabulated,
analyzed and interpreted by using suitable statistical tools and techniques like averages,
percentile etc.
1. Awareness about the Challenges to HRM:
All the respondents( Executives) acknowledged that they are aware about the fact there
exist challenges for human resource managers.
2. HR challenges as perceived by power sector executives:
The researcher asked the next question that which new HR challenges are being
Perceived and faced by your organization. To facilitate the answer of the query
researcher identified and presented 15 challenges namely-globalization (GN),skill
shortage(SS), attrition(AN), outsourcing(OG) , managing diversities(MD), gender
bias(GB), transformation(TN), employees expectations(EE), organizational
restructuring(OR), increasing HR costs(HRC), ageing workforce(AW), career
development(CD), quality of work life(QWL), managing work stress(MWS), and
managing conflicts(MC). Respondents were also requested to rank their choices in order
of their preference/priority.
Responses received from the respondents have been presented in Table 1.1 below-
Table1.1 : HR Challenges as perceived by Executives of PG Units
Rank I II III IV V VI VII VIII IX X XI XII XIII XIV XV Total
Challenges
GN 19 3 - 1 1 - - 2 - - 4 2 4 1 11 48
SS 36 9 4 - 11 5 2 3 - - 1 1 1 1 - 74
AN 5 3 5 2 - 1 - 2 4 1 12 2 1 1 - 39
OG 2 5 3 12 4 - 10 1 3 4 4 - 2 - - 50
MD 1 1 - - 3 - 2 - 2 4 - 8 - 1 5 27
GB 1 2 2 3 - 1 3 6 1 1 3 2 4 8 2 39
TN 1 4 1 2 4 9 3 3 4 2 2 4 - 1 1 41
EE 5 14 15 7 8 6 6 2 - 2 - - - - - 65
OR 2 3 1 8 4 5 6 2 - - 1 2 1 2 - 37
HRC - - - - 1 3 - - 3 2 1 - 13 4 1 28
AW 5 19 7 10 1 3 3 - 1 2 - 1 - - - 52
CD 2 3 10 8 4 3 2 10 1 1 - - 1 2 - 47
QWL 1 3 7 4 11 1 2 3 16 2 1 2 - 1 - 54
MWS - 7 9 4 8 10 - 1 1 4 2 5 - - 1 52
MC - - 2 - - 1 1 4 3 7 1 1 2 5 3 30
Total 80 76 66 61 59 48 39 39 39 33 32 31 29 27 24 683
Source: Compiled by researcher as per responses received
INCON - XI 2016 22
From the perusal of responses plotted in the above table it is abundantly clear that 45
percent of the total respondents assigned I rank to skill shortage, which implies that in the
opinion of executives of power sector units selected under study, HRM of these units is facing
the challenge of skill shortage, about 25 percent of the executives feel that globalization is the
biggest challenge to modern HRM, 6 percent respondents consider that attrition, employees
expectations and ageing workforce is the biggest new challenge to HRM in their opinion.
Respondents do not consider the other challenges as more pressing. At the second place about
25 percent of total respondents consider the ageing workforce as new HRM challenge
whereas, 14 respondents acknowledged that employees expectations is the greatest new HRM
challenge. About 12 percent of respondent have assigned the second priority to skill shortage.
As per the above responses out of several challenges two challenges i.e. skill shortage and
globalization are worth considering and therefore, in this study only these two challenges have
been taken into consideration.
1. Challenges posed by skill shortage:
Power generating units in India are facing acute skill shortage. The challenges posed, as
perceived by the executives working in power generating units included in the study, by
skill shortage are as follows-
Table 1.2 HR Challenges posed by Skill Shortage in PG Units
SN HR Challenges No. of Respondents Percentage Cumulative percentage
1. Low Productivity 27 40 40
2. Low Morale 24 36 76
3. Higher Accident Rate 01 01 77
4. Higher Absenteeism 04 06 83
5. Higher Attrition Rate 07 11 94
6. Any other, Pl. Specify 04 06 100
Total 67 100
From the perusal of the figures given in the above table it is quite clear that 67 out of the
80 respondents have expressed their concern about skill shortage and consider the same as HR
Challenge. In opinion of 40 percent of the surveyed executives low productivity is the biggest
challenge posed by the skill shortage in their organizations and an almost equal percentage of
respondent consider low morale, which in fact a twin issue, as the biggest HR challenge of
skill shortage. Other HR challenges like higher accident rate, higher absenteeism rate, higher
attrition rate are not HR Challenges posed by skill shortage in the opinion of the executive
surveyed power generating (PG) units.
1. Strategies adopted to meet the HR Challenge posed by Skill Shortage:
When asked about the strategies adopted to meet the HR Challenge posed by skill
shortage, 34 percent of the respondents said that they train and develop existing
employees, very close to this 33 respondents acknowledged that they encourage
employees to upgrade their skills, 22 respondents were of the opinion that they attract
and recruit new skilled persons and remaining 11 respondents said that use the strategy
of reimbursement of the cost incurred by employees on the up gradation of their skills.
INCON - XI 2016 23
To make the same understandable at a glance responses received from the respondents
on strategies adopted to meet skill shortage have been depicted through a pie chart-
Fig. 1.1: Strategies adopted to meet the HR Challenge posed by Skill Shortage:
2. HR Challenges posed by Globalization:
Globalization has changed whole scenario and it has posed many challenges to human
resource managers. Workforce has become global, competition has intensified as it has
become global, rate of attrition has increased, employees’ expectations has also increased and
many more like this. When executives of surveyed PG units were asked about the HR
challenges posed by globalization they gave the varied responses which have been
summarized in the following table-
Table 1.3: HR Challenges posed by Globalization
SN HRM Challenges No. of Percentage Cumulative
Respondents Percentage
1. Global Workforce 01 01 01
2. Increased attrition rate 10 12 13
3. Global competition 24 28 41
4 Increased employees 50 57 98
expectations
5. Any other, Pl. specify 02 02 100
Total 97 100
Source: As per responses received from respondents
From the perusal of the figures given in the above table it abundantly clear that more
than half of the total respondents have express their opinion that by onset of globalization
expectations of their employees have increased, whereas about one-fourth of the respondents
said that they facing HR challenge in the form of increased global competition due to
INCON - XI 2016 24
globalization, 12 percent of the respondents said that by globalization attrition rate of their
employees has increased. Other challenges are not of much significance.
1. Strategies to met the HR challenge posed by Globalization:
Different executives surveyed under study are found using or preferring to use different
HR strategies to meet the challenge posed by globalization varying from think globally,
act locally to commitment and motivation. Out of all the surveyed executives 14 percent
executives preferred to use think globally, act locally strategy, only 3 percent executives
opined that they use strategy of collaboration with global firms, 23 percent respondents
said that they use the policy of competitive goal setting, 60 percent executives express
their opinion in favour of using commitment and motivation strategy. Thus it is quite
clear from the responses received from respondent that a quite a substantial majority of
the respondent prefer to commitment and motivation policy as a strategical tool to
counter the challenge posed by globalization.
The make things understandable at a glance the responses received from the respondents
have been presented with the help of a pie chat-
Fig.1.2: Strategies to meet the HR challenge posed by Globalization:

Conclusion & Suggestions:
From the findings of survey it was revealed that-
1. All respondents are aware of modern HR Challenges.
2. Out of total 80 respondents 45 percent respondents accorded first priority to the skill
shortage, 24 percent respondents to globalization, 5 percent each to attrition, increasing
employees expectations and ageing workforce as HR challenge. In the opinion of the
respondents other HR challenges are not of much significance.
3. Irrespective of ranks 74 respondents considered skill shortage as HR challenge, 65 as
increasing employees expectations, 54 to Quality of work life, 52 each to managing work
stress and outsourcing, 48 to globalization, 47 to career development, and 41 to gender
bias as HR challenge.
4. 40 percent of the respondents considered that skill shortage poses challenge of low
productivity, 36 percent to low morale and 11 percent to increased rate of attrition.
INCON - XI 2016 25
5. To meet the challenge posed by skill shortage 34 percent respondents were found to
using strategy of training & development of existing employees, 33 percent to encourage
employees to upgrade their skills and 22 percent were found using strategy of using
strategy of attracting and recruiting new skilled employees.
6. In the opinion of 57 percent respondents globalization has presented challenge of
increased employees expectations and 28 percent believed that it has presented the
challenge of global competition.
7. To meet the challenge posed by globalization 60 percent of the respondents were found
to using strategy of commitment and motivation of employees and 23 percent were
preferring to using strategy of competitive goal setting.
8. Respondents have not given much weight to managing diversities, increasing HR costs,
and managing conflicts as challenge to HRM and only 27, 28 and 3o respondents out of
total 80 respondents have acknowledged them as challenge, whereas these challenges
have serious repercussions on organizational success. They are advised to take them
seriously.
9. Some of the strategies suggested did not find much favor from respondents although they
may prove quite effective to cope with the challenges like ,think globally, act locally to
deal with globalization challenge, reimbursement of expenses incurred on skill up
gradation to meet skill shortage challenge etc. Executives are advised to act upon them.
Limitations of the Study:
1. Sample size is 80 which can not be considered much adequate to conduct such type of
study and drawing conclusions from the same.
2. Conclusions drawn are based solely on the opinion expressed by the respondents.
3. In personal conversation with the respondents it was found by their behavior that they
were not seemed much worry about HR challenges.
REFERENCES:
1. Agrawal Tanuja: Strategic Human Resource Management- Oxford Press 2011
2. Basu KS: New Dimensions in Personnel Management- Mcmillan India Delhi 1972
3. Chandler AD: Straegy and Structure- MIT Press Boston, Masschusetts,1962
4. Dowling PJ et.al: Human Resource Management- Wordsworth 1993.
5. John Bernalin: Human Resource Management- an experimental Approach, Tata McGraw
Hill Delhi.
6. Karren Legge: HRM-A Critical Analysis in John Story(ed.) New Perspective in HRM
Roultedge 1989.
7. www.chillibreze.com
8. www.citeman.com
9. www.citehr.com.

INCON - XI 2016 26
Managing Human Resources in Small & Emerging Organizations

Prof: Sangita Solanke Dr.S.B.Mathur
ASM’s IIBR Survey No.29/1+2A, ASM’s IIBR Survey No.29/1+2A,
Near PCMC Bldg. Pimpri Near PCMC Bldg. Pimpri
Pune – 411018. India Pune – 411018. India
Sangita.lrs@gmail.com shyam_b_mathur@yahoo.com
ABSTRACT:
Human resources are becoming more important, and also the management of
these resources in the knowledge-based economy. Knowledge, skills and human
resource techniques which are used in large organization can be used in small or
emerging organizations but facts suggests that new and small ventures are different from
the existing ones and management of people in them also may not match with the
established ones. This paper reviews extant research on managing people within small
and emerging organisations. Our review suggests that as researcher, our knowledge of
the HR practice and issues important to small and emerging ventures is limited. Though
we have begun to understand how these firms should hire, reward, and even motivate
their employees, we lack much of the theory and data necessary to understand how small
and emerging firms train their employees, manage their performance and promote or
how they handle organizational change, or respond to labor problems and union
organization issues.
The existing literature tells the small organizations have problems but for their
effective functioning how the HR department’s functions and how the HR decisions made
by the department affects the organization long term development and long term goals.. .
Generally speaking Small businesses are contributing more to the economies of nations
throughout the world than the large organizations.
Keywords: management; Small organisations, human resource practices.
I. Introduction:
Human Resource is very important component or asset of an organization and this is the
main reason why an organization must do human resource management. They need to be
managed successfully needless of the size of the organization because the employees
contribute to the success and development of business. In the knowledge-based economy,
organisations are challenged to meet their demand for more highly trained employees in labour
markets characterized by a shortage of qualified employees. Every business enterprise needs
faithful, efficient, hard working and motivated employee. Even An employee’s abilities,
loyalty and commitment can be boosted through effective HR management. Newly area of
study has focused on the role of the founder in new business formation, specifically on the
characteristics of those individuals, such as leadership, self-efficacy, urgency, fairness, risk-
taking ability. While doing this research we are keeping these distinctions in mind, we use a
functional HR framework to explore extant literature on HRM in small and emerging
organizations. While a functional approach to human resource management research has been
criticized. Common HR practices such as compensation, staffing, and training in their model.
This suggests that a functional perspective of HR remains suitable, and we use this framework
through the paper. Small and new organisations are facing problems of how the firm addresses
INCON - XI 2016 27
human resource issues. In small firms, where resources are likely to be scarce, there may be a
very small number of formal HR departments or professionals, increased difficulty in
recruiting and retaining employees due to lack of financial resources, and an increased
unwillingness to engage in costly or restrictive practices. Further, challenges in emerging
ventures, including establishing firm identity and legitimacy, maintaining flexibility,
developing sustainable practices.
II. Functions of HRM in Small Organisations:
Human Resource Department or Human Resource Manager of an organisation has to
perform certain functions to justify their presence in an organisation. These functions are more
or less same for most organisations irrespective of their size. In small firms, where resources
are likely to be scarce, there may be a very small number of formal HR departments or
professionals, increased difficulty in recruiting and retaining employees due to lack of
financial resources, and an increased reluctance to engage in costly or restrictive practices. In
young firms, where experience is likely to be lacking, we may expect to see a reduced reliance
on formalized training, difficulty recruiting due to lack of legitimacy, and more informal and
potentially haphazard employee management systems.
Small firms face many unique HR challenges(Greening, Barringer, & Macy, 1996),
including an often ambiguous firm identity that is easily impacted by new employees (Cardon
& Tolchinsky, in press) , difficulty in attracting and retaining key talent and skills (Barber et
al., 1999; Williamson et al., 2002), lack of legitimacy as an employer organization
(Williamson et al., 2002), maintaining flexibility in staffing (Cardon, 2003), and developing
sustainable human resource policies that endure market and organizational fluctuations.
In short, ‘‘Human resources are critical for new organizations in ways often
unappreciated by researchers who study only established organizations’’
(Katz et al., 2000, p. 7).
Because management of HR in small firms poses challenges distinct from those of their
larger firm counterparts, several scholars maintain that further study of HR in small firms is
warranted. We contend, as have others (e.g.,Heneman & Tansy, 2002), that organizational
approaches to staffing, compensation, training and development, performance management,
organizational change, and labor relations have profound effects on the firm’s ability to
address these challenges and therefore on the firm’s effectiveness and survival. HR manager
has to stay abreast with standard business practices and should have proper knowledge of best
HR practices.HR managers in small organisations have to perform following functions on
regular basis
A. Devotion to rules & regulations:
It is important for the Hr department in all the organizations to follow the rules and
regulations which have impact on human resources from hiring them through their
termination, which includes their safety, benefits, etc. even very small companies having one
to fourteen employees should also comply with fair labour standards, equal pay, etc.
B. Benefit Administration
Administration is involved in all sizes & types of companies. HR management can help
the small organizations by doing the research to find out which benefits can be most cost-
effective for the organization and how the provisions of these benefits will be managed which
INCON - XI 2016 28
will need a lot of administrative work. HR can also benefit a company by being in tune with
the employees and getting to know what benefits employees value most.
C. Hiring practices:
HRM department provides effective hiring practices to an organization. A good hire is
one where the required skills, abilities and know-how required by a job matches the person
hired for the job and the culture of the small organization. Hr management can help a small
organization by removing the odds in hiring and HR departments also helps in managing the
risks involved in hiring like –reference check, discrimination claims and inappropriate
questions asked during the interviews.
D. Training & Development:
Since small firms have less number of people working with them so it is more important
for them to provide cross-training to the employees to cover more than one job function or
task. HR management can provide the small organizations with effective and low cost training
techniques.
E. Employee Recognition:
Small enterprises have limited number of employees and low budgets for employee
benefits so the HR management can help in terms of employee recognition programs that
value employees and keep them committed to the organization. Employees can also give their
views during such programs and when their ideas are implemented then it acts as a morale
booster which in turn reduces employee turnover.
F. Global Human Resources:
Small businesses are also tapping global markets these days. It is the responsibility of
HR manager to develop capable staff with cultural fluency for initiating and sustaining
overseas relationships. Small enterprises have limited resources so the HR manager has to
keep this in mind while hiring suitable employee for placement in foreign office.
G. Multigenerational Diversity
HR manager has to deal with multiple generations in one organisation. One generation
may be tech savvy while the other may prefer face to face interaction. In small and emerging
enterprises, due to lack of resources and knowhow, the manager has to find a way to bridge the
gap between these various generations.
H. Strategy
HR manager’ strategic role concentrates on building partnerships with other
departments. This involves identifying the kind of resources needed by the business. This can
be done by defining jobs clearly, recruiting the right people for right jobs. Thus HR acts in a
strategic capacity. HR manager develops new policies and procedures for the
Emerging business practices, like use of social media technology for providing
marketing and customer service.
I. Change
Companies sometimes have to change due to market conditions, mergers, acquisitions or
leadership departures; etc.HR manager has to manage this change effectively.
INCON - XI 2016 29
HR manager helps everyone to understand the need for change and prepares them for the
transition and implements new policies and procedures. HR manager has to conduct surveys
and hire new staff to meet changing needs of the organisation. Effective leaders should be able
to build strategic partnerships so that there are fewer disruptions, objections and anxiety.
J. Employee Relations
Labour and employment laws are very complex so the HR manager is expected to have
specialized skills, knowledge and expertise to adhere to these laws and regulations. As
companies compete in the global market, HR managers have to manage programs to promote
diversity, improve collaboration and maximize productivity. An effective HR manager can
lead to the increase of small l business growth and can reduce the small business failure has.
This will result in high levels of employee satisfaction and good employee relation
III. HRM Challenges and their Solutions for Small Organization’s :
In small organizations the HR manager has to single handily be involved in human
resource management all the time. It can be single largest consumer of his time and energy.
Some of the issues like sourcing and recruiting visionary personnel are also emerging because
of globalisation. Some of the issues which need attention of the HR manager are mentioned
below:
A. Making a staffing plan:
The HR manager must have a staffing plan ready before starting up with the hiring
process for a small or new business. He needs to know the number of employees required to
be hired, type of employees, required qualification for the job, how the employee expenses
will be covered, and what value addition is expected from the new employees. Most
importantly, this staffing plan must co-ordinate with the overall business objective.
Solution:
The staffing plan need not be very lengthy. It has to just address the key issues and long
and short term objectives in order to take wise management decisions. It should be able to
provide a vision. In the absence of a vision, the planning can go nowhere. A staffing plan
should be such that it should be able to let the lenders and employees know about what kind of
organisation is being created.
B. Finding suitable employees:
The HR manager should be able to find a right kind of employee for the right post. The
organisation culture comes into picture for employee selection. The manager should be able to
find an employee whose culture should match with organisation’s culture. Finding high value
employees require a lot of time and effort as efficient people will already be employed with
other organisation and it’s tough to uproot them as their employers won’t let them go
moreover extracting such employees can prove to be a costly affair.
Solution:
A manager has to spend lot of time in finding high value employees; he can opt out of
various ways of hiring like ads in publications, campus placements, employee referrals,
professional recruiters, by word of mouth, etc.
INCON - XI 2016 30
C. Screening potential candidates:
The source of recruitment has to be chosen very carefully. A small organisation can’t
expect employees of large organisations to join their business who reward lavishly. The
manager has to find suitable yet efficient employees who should be able to provide results and
create value to the organisation and they should be cost efficient as well.
Solution:
The HR manager should study the employment history of the potential employee
properly. He should make a note of which organisation is he working in and see if the resume
reflects the character of the employee, if he’s result oriented, aggressive, loyal, committed, etc.
Only potential candidates should be called for the interview as it is a time consuming process
and the manager should value his and others time.
D. Interview & personal Interaction:
The HR manager in small organisations has to be precise during the interview process.
Since whole responsibility of the recruitment process rests on his shoulders so he has to decide
the duration, questions to be asked during the interview, what kind of interview should be
conducted –written test or personal interaction or both. The manager or the owner of the
enterprise should have a plan ready as to what kind of interview will be conducted and he
should be ready to face the challenges during the interview process.
Solution:
The manager should spend adequate time with the applicant. He should ask him open
ended questions should take his time to analyse and access the person. He should discuss the
job role and other points like benefits, job relocation, flexibility, etc with the applicant and
should discuss compensation only with the prospective employee and shouldn’t sell the
company to the applicant. In the end he should discuss the resume details with the applicant.
E. Hiring:
Hiring is always done by giving an offer letter to the applicant in any kind of
organisation. The HR manager has to decide about the contents and clauses to be included in
the offer letter. This has to be done very carefully by keeping in mind the company policy,
rules and regulation. The HR manager has to make the package attractive yet cost effective. So
it’s a tricky task to decide the contents of an offer letter
Solution:
The offer letter should contain details regarding the compensation, benefits, probation
period, reporting authority, leave details, job description, job responsibility, job location,
joining date, etc. It is always better to document all the details in advance in order to avoid any
conflict later on.
F. Retaining Employees:
After hiring suitable employees, the HR manager has to take care that these employees
are retained in the organisation and they like their work. It is very difficult to hire frequently
especially for a small and new organisation as it can prove to be an expensive process. One
can’t afford to carry on recruitment process on a regular basis as it also hampers the day to day
INCON - XI 2016 31
functioning of the firm and it can also stress the existing employees and can lead to frequent
employee turnover
Solution:
The pull technology should be used and efforts should be made to retain the employees.
Their needs should be accessed and the reasonable ones should be fulfilled in order to
motivate them to stick to the organisation. The manager should keep inducing the employees
with fresh assignments and ideas to keep their interest intact. Regular interaction with the
employees should be done and their ideas should be appreciated and deployed.
G. Employee Performance Appraisal
After the employees are selected, employed and retained, the HR manager is faced with
the challenge of appraising the employees. He has to decide on to the method to be used for
the employee’s performance appraisal. There are many methods like straight ranking method,
paired comparison, grading system, forced distribution, check list method, critical incident and
free essay method. He has to see all employees as team members working towards achieving a
common organisational objective. So, the appraisal should be free of bias
Solution:
The HR manager has to find out poor performers and good performers. He should keep
in mind that efficient & committed workers should get their share of appreciation and
incentives accordingly because if they are not recognised then they’ll feel deprived of their
rights. Most importantly, a cost effective method of evaluation should be opted.
H. Legal Issues :
Small and new firms have lesser resources as compared to large firms. In the startup
faze, when organisations battle to survive, the owners ignore the need of legal counsel and
they tend to postpone hiring a legal counsel. There are issues like unemployment insurance,
compensation, social security issues, tax related issues requiring legal assistance. The HR
manager is faced with the challenge of hiring a suitable attorney for the organisation.
Solution:
The owner should seek advice from other small business owners regarding the hiring of
the attorney. He should seek referrals from small firms instead of hiring a big firm as his
attorney because the fees charged by these firms is too high and small & new firms won’t be
able to afford it. The person or firm chosen should be cost effective but competent and
knowledgeable. HR manager should continually maintain its expertise and know how related
to emerging legal issues.
I. Health & Safety Issues:
The rate of workplace injury or ill health is twice as high in small scale organisation as
in a large organisation. But this varies with the nature of the organisation. So, the HR manager
is burdened with making efficient safety policies and provides the employees with good health
related schemes. He should be able to keep the organisation a safe and employee friendly
place for work. This would also cover the interpersonal relations among the employees.
INCON - XI 2016 32
Solution:
Safety training should be provided to the employees while joining the organisation and
records of such training should be maintained. Old and obsolete machinery should be replaced
and recorded. Employees should be provided with safety insurance covers in case of any
mishaps. Organisation should encourage good relations among employees
Conclusion:
‘‘Once a new venture is founded, becomes an organization, and hires its first employees,
human resource issues and forces that exist in—and influence the success of—all
organizations comes into play. Indeed, growing evidence suggests that an inability on the part
of some founders of new
Ventures to successfully manage HRM issues are an important factor in their ultimate
failure’’
Effective management of human resources is one of the most crucial problems faced by
small firms.
It’s found that growing importance of small enterprises has become a global trend which
has derived productivity, innovation and employment growth in both developed and
developing nations. But their increased importance has failed to reduce the challenges and
obstacles being faced by them. 30 to 50 percent of the small and new enterprises fail every
year. There are many reasons for this failure such as lack of planning and organization, lack of
knowledge or experience, lack of both financial and human resources, etc. Human resource
management in small enterprises is still in exploratory stage and they use less sophisticated
HRM practices which may be because of lack of funds. The owners also have a great impact
on the HR policies followed by the companies and HR managers lack in their action under this
influence. Small firms provide lower wages to the employees as compared with their large
counterparts and they also tend to provide less training facilities to their employees. But they
have a behavioral advantage in managing employee relationships due to lack of formal or
professional policy towards employee management.HRM patterns come in two different forms
in Small organizations which are (a) written procedures, documents, roles and instructions,
and(b)informal procedures or ways of doing things. The patterns can establish in any of the
community members mind and they become routine and others start following it. Small and
emerging enterprises should document policies regarding human resources issues and they
need to consider the training and development needs for their employees. They should spend
on training only if required. The owner should maintain a productive atmosphere to make the
employees contribute more toward achieving the common business objective.
REFERENCES:
[1] www.endnotes.com
[2] Small business.chron.com
[3] Rossiter, and Jill A., “Human Resources: Mastering your Small Business,” Upstart
Publishing, 1996.
[4] Tara Duggan, “HR Functions and Emerging Business Trends,”Demand Media.[5]Leigh
Richards, “How HRM Benefits a small Business,” Demand Media.
[5] http://www.sensible-small-business-ideas.com/human-resource-management.html.

INCON - XI 2016 33
Emerging Engagement Models for Employees in IT and ITES Companies

Prof Shakti Marhatta
ashu.shakti@gmail.com
ABSTRACT:
Employee engagement, also called worker engagement, is a business management
concept. An "engaged employee" is one who is fully involved in, and enthusiastic about
their work, and thus will act in a way that furthers their organization's interests.
Employee Engagement is the extent to which employee commitment, both
emotional and intellectual, exists in relation to accomplishing the work, mission, and
vision of the organization. Engagement can be seen as a heightened level of ownership
where each employee wants to do whatever they can for the benefit of their internal and
external customers, and for the success of the organization as a whole. Employee
engagement will help teams work cohesively and remove layers of bureaucracy resulting
in faster decision-making and clearer management accountability. Today’s’ employees
want to be an active participant in their company’s culture. They want to know how they
fit in and how they are making difference.
Although employee engagement is becoming increasingly mainstream, it is still a
young tool, and the effectiveness of different approaches vary widely. As companies
implement and refine their employee engagement efforts, it’s important that they
continue to collect the feedback from the employees time to time to improve their
programs.
1. Background and statement of the problem
Employee engagement is derived from studies of morale or a group's willingness to
accomplish organizational objectives which began in the 1920s. The value of morale to
organizations was matured by US Army researchers during WW II to predict unity of effort
and attitudinal battle-readiness before combat.
Thus the birth of the term "employee engagement" which is an individual emotional
phenomenon whereas morale is a group emotional phenomenon of similar characteristics The
Gallup Organization conducted studies on employee engagement from the mid to late 1980s
and published their results in a very popular book, “First, Break All the Rules” (Ferguson).
Gallup’s book arguably introduced the concept to the global market. The first published use of
the term employee engagement was in the Academy of Management Journal article
"Psychological Conditions of Personal Engagement and
Disengagement at Work" (W. Kahn, 1990), since the early 1990s other consulting firms
and research organizations have followed suit doing research and created their own hypotheses
concerning employee engagement.
Employee engagement, also called worker engagement, is a business management
concept. An "engaged employee" is one who is fully involved in, and enthusiastic about their
work, and thus will act in a way that furthers their organization's interests.
Employee Engagement is the extent to which employee commitment, both emotional
and intellectual, exists in relation to accomplishing the work, mission, and vision of the
organization. Engagement can be seen as a heightened level of ownership where each
INCON - XI 2016 34
employee wants to do whatever they can for the benefit of their internal and external
customers, and for the success of the organization as a whole.
Literature Review:
 Malavika desai et al ( 2010 ) in the article. A study on employee engagement in two
Indian Business. Finds that employee engagement is practiced more in the
manufacturing organization when compared to the IT organizations. It was found that
the degree of employee engagement was significantly high in the manufacturing
organization as compared to that in IT firms. The main causes for a high engagement in
the manufacturing sector were found to be as – the impression that the firm cares for and
values the employees , free and frank communications with immediate supervisor , one's
contributions towards organizational goals and freedom to participate in the decision
making process.
 Susan Abraham ( 2012 ) in her paper, Development of Employee Engagement
Programme on the basis of Employee Satisfaction opinions today’s competitive world
has posed many challenges to organizations in the form of diverse consumer
demographics, complex strategies of competitors, workforce issues and many others.
Sustaining in such a situation requires an organization to have committed and loyal
employees. It is the engaged employees who ensures higher productivity in
organizations. Hence, the trend is towards designing programmers to enhance the level
of employee engagement.
 Sangamitra chaudhuri et aliae (2012) in the journal, Reverse mentoring: A social
exchange tool for keeping the boomers and millennials committed. Says the boomer and
millennnnials are working together. In the wake of mass retrenchment and economic
crises, there is a greater urgency for HR professionals to focus more on engagement by
social exchange tool. The different outcomes of reverse mentoring programs shows
future gap for research.
 Brand shuck et alia (2012) in the article, Employee engagement and leadership:
exploring the convergence of two framework and implicational for leadership
development in HRD, It status that practical problems of using single style transactional
or transformational leadership does not suit changing employee engagement needs .so
the blend of both styles will suite different levels of employee in the cosmopolitan
organizations.
2.1 Shifting Paradigms in Employee Engagement & Development
Dimension Existing Emerging
Organizational Structures Hierarchical Flat
Work Environment Transactional Collaborative
Management Styles Authoritative Facilitative
Performance Appraisals Senior Driven 360º
Compensation Fixed High Risk High Returns
Rewards & Recognition Non Monetary Monetary
(Source: When Generations Collide: How to Solve the Generational Puzzle at Work,
Lynne C. Lancaster, Executive Forum Presentation, 2004.)
INCON - XI 2016 35
Structured study and assessment of the changing employee engagement and
development models within ‘Information Technology’ (IT) and ‘Information Technology
enabled Services’ (ITeS) industry within India can help us identify best practices, pitfalls to
avoid and define roadmap for seamless change across various other sectors.
2.2 Employee Engagement Model
© 2013 Modern Survey, Inc. All rights reserved. | http://www.modernsurvey.com/mailers/fall-

2013-engagement
Y. Hong, H Liao, J, Hu, K, Jiang, “Missing Link in the Service Profit Chain:A Meta-
Analytic Review of the Antecedents, Consequences and Moderators of Service Climate,”
Journal of Applied Psychology, 98/2, 237-267 (2013)
We define engagement through three attributes that include the extent to which
employees:
Say—speak positively about the organization to co-workers, potential employees and
customers
Stay—have an intense sense of belonging and desire to be a part of the organization
INCON - XI 2016 36
Strive—are motivated and exert effort toward success in their job and for the company
Rewards and social recognition : Driving employee Engagement
As the new rules of recognition become prominent in the workplace, Employe
Engagement can be impacted through having Rhythm and Technology as a base and
implementing peer, results based social recognition
www.achievers.com
Most effective retention initiatives by generation

Ranking Generation Y Generation X (ages 30- Baby boomers Veterans
(under age 30) 44) (ages 45-64) (over age 65)
1 Company culture (21 Additional bonuses or Additional Additional bonuses
%) financial incentives benefits (i.e. or financial
(21 %) health and incentives
pensions) (25 %)
(26 %)
2 Flexible work Additional compensation Additional Additional benefits
arrangements (20 %) (19 %) bonuses or (i.e. health and
Strong financial pensinos)
leadership/organisainal incentives (24 %)
support (19 %) (23 %)
3 New training Customized/individualized Additional Flexible work
programs(19 %) career planning (18 %) compensation arrangements (20
(21 %) %)
Support and Succession planning Strong Corporate social
recognition from (18 %) leadership responsibility (20
supervisors or organizational %)
managers support (21 %)
(19 %)
4. Scope of the Study

This research will identify the types engagement efforts used by companies today to
attract and retain the employees in workplace. Human Resource Managers and Recruiters will
benefit from this study as it will give them a tool to understand what employees looks for in an
employer and what motivates them to stay with that employer. This research will also help
INCON - XI 2016 37
companies revise their engagement practices and adjust their benefit packages in an attempt to
attract the best of employees as well as retain them, reducing costly turnover rates.
1. Indian Information Technology / Information Technology enabled Service Industry
2. Readiness of Organizations to Manage the Change
3. Emerging Best Practices Pertaining to Organizational Structures
4. Emerging Best Practices Pertaining to Work Environment
5. Emerging Best Practices in Performance Appraisal
6. Emerging Best Practices in Training & Development
7. Emerging Best Practices Pertaining to Compensation & Reward Models
5. Constraints of the study:
As this study was conducted in IT & ITES Companies only so the views and thoughts of
the other companies differ. Study is restricted to Pune only therefore situation in other cities
may differ. The sincerity and accuracy required for filling the questionnaire can affect the
results.
6. Research Methodology :
6.1 Research Design
The researcher aims to divide the steps to collect primary in two stages and these include
exploratory research and descriptive research. Target audience for this research are employees
working at different levels in IT & ITES companies in pune.
6.2 Sample:
The target population of this research is employees working in IT and ITES select group
of companies in pune.
6.3 Type & Source of Data:
Data used to support the analysis in this study is gathered from two sources, primary
data and secondary data.
Primary Data:
Primary data refers to 'the first-hand information gathered by the researcher to answer
the problems at hand' (Hackley, 2001, p. 42). In general, primary data can be gathered with the
use of different quantitative and qualitative research methods, such as the questionnaire, focus
group interview, in-depth individual interview and Delphi research. The selection of research
tools will depend on a few factors, such as time, research skills of the researcher and budget
for the research. Also, the type of research tool used will determine the number of respondents
required for the study. In general, when using a qualitative research method, a small group of
respondents is needed, while when the quantitative research tool is employed, a larger
sampling size will be required. In this study, the researcher will use the semi-structured or
quantitative questionnaire as the main primary research method. The questionnaire will be
developed based on the research results from the exploratory research. More information about
the questionnaire will be explained more in detail in the later section.
INCON - XI 2016 38
Secondary Data:
Secondary data refers to 'existing information which is collected by someone else for
specific purpose' (Hamingway, 2001, p. 46). In other words, secondary data can be collected
from various sources and the researcher may need to gain permission before accessing it. The
good point of the secondary data is that it is cheaper to gather as compared to primary data.
However, as secondary data is collected by someone else and for a specific reason, this means
that it may not answer the problems at hand. Therefore, the main task of the researcher is to
ensure that the secondary data collected to support the analysis of each research project must
be related and relevant to the project at hand. The secondary data include internal information
(i.e. sale report, market audit, marketing plan) and external information (i.e. newspapers,
books, journal articles).
In this study, the researcher plans to gather secondary data from different sources, such
as journal articles, newspapers, websites, textbooks and university database. Apart from
making sure that they are related and relevant to the research aims and objectives, the research
will also ensure that it is reliable by collecting it from sources with a good creditability.
The theoretical perspectives and the review of relevant literature led to the objectives
and hypothesis.
REFERENCES:
 Allen, T., Eby, L., Poteet, M., Lentz, L. & Lima, L. (2004). Career benefits associated
with mentoring for protégés: a meta-analysis. Journal of Applied Psychology. 89, 127-
136.
 Allen, T., Poteet, M., & Burroughs, S. (1997). The mentor’s perspective: A qualitative
inquiry and future research agenda. Journal of Vocational Behavior. 51, 70-89.
 Allen, T., Russell, J. & Maetzke, S. (1997). Formal peer mentoring: Factors related to
protégés’ satisfaction and willingness to mentor others. Group and Organizational
Management. 22(4), 488-507.
 Axelrod, B., Handfield-Jones, H. & Welsh, T.A. (2001). War for talent (Part 2).
McKinsey Quarterly, 2, 9-12.
 Baron, T. (2000). IT talent shortage renews interest in mentoring. Information Week 24
April,166-168.
 Barrett, A. & Beeson, J. (2002). Developing Business Leaders for 2010. R-1313-02-RR.
NewYork: Conference Board, Inc.
 Barrett, C. (2005). Performance and potential 2005-06: Trends reshaping our future.
Conference Board of Canada. 1-5.
 Benimadhu, P. & Gibson, J. (2001). Leadership for Tomorrow: Playing Catch Up with
 Change. Conference Board of Canada. 327-01, 1-35.
 Biech, E. (2003). Executive commentary on mentoring. Academy of Management
Executive.17(4), 92-94.
 Chamaz, K. (2000). Grounded theory: Objectivist and constructivist methods. In N.K.
Denzin& Y.S. Lincoln (Eds.). Handbook of Qualitative Research (pp. 509-535).
Thousand Oaks,Sage.
 Chao, G., Walz, P. & Gardner, P. (1992). Formal and informal mentorship. Personnel
 Psychology. 45(3), 619-636.
INCON - XI 2016 39
 Conklin, J. (2002). The benefits of mentoring. Quality Progress. 35(11), 91.deJanasz, S.
& Sullivan, S. (2004). Multiple mentoring in academe: Developing the professorial
network. Journal of Vocational Behavior. 64(2), 263-283.
 Dreher, G. & Ash, R. (1990). A comparative study of mentoring among men and women
in managerial, professional, and technological positions. Journal of Applied Psychology.
75(5),539-546.

INCON - XI 2016 40
Negaholics At Workplace And Toxic Culture Within Organization With

Special Reference To Management Institutes
Mrs. Vidya Khachane
Assistant Professor, IBMR,
Chinchwad, Pune, India.
ABSTRACT:
While working in an organization we find individuals who are more interested in
gossiping. They waste their time in irrelevant talks. They come to the workplace to
discuss politics, sports dresses, affairs and parties. They discuss everything that has
nothing to do with their work. This creates turmoil and unhealthy environment at
workplace.
There are 14 different types of Negaholics distributed in these categories. These
negaholics create toxic culture in organization. In toxic culture the elements of culture
reinforce negativity. Values and beliefs are negative. The cultural network works in
opposition to anything positive. The result may be motivation, commitment and loyalty
are destroyed across the employees and management. Every organization has its own
work culture, employee culture and objectives. From individual and organizational
angle, the effect of such negaholism and toxic culture need to be studied.
Keywords : Workplace, Negaholics, Negaholism, Toxic Culture, Motivation,
Commitment
Introduction
Every organization has individuals showing varied behavior. In the organization, some
are zeal and vigor to perform, self-motivated, proactive team players while other are least
interested in taking initiative, creates de-motivate environment and hurdle for performing. The
people who behave in other fashion are termed as Negaholics and their act is known as
negaholism.
Negaholism is dysfunctional, counterproductive and contagions in nature. It spreads like
any epidemic in the organisation. If not checked at the right time, it has potential to ruin the
organization. It is very important to indentify the negaholics and treat them accordingly, in
order to save valuable resources of the organization.
There are four different categories of Negaholics viz. Attitudinal, Behavioral, Mental
and Verbal. There are 14 different types of Negaholics distributed in these categories. These
negaholics create toxic culture in organization. In toxic culture the elements of culture
reinforce negativity. Values and beliefs are negative. The cultural network works in opposition
to anything positive. The result may be motivation, commitment and loyalty are destroyed
across the employees and management. From individual and organizational angle, the effect
of such negaholism and toxic culture need to be studied.
Aims and Objectives of Study
1. To study different forms of negaholics.
2. To study the behavior of faculty members in management institute and judge whether
there exists nagholism within them.
3. To compare negaholics amongst different gender within faculty members.
INCON - XI 2016 41
4. To study characteristics of toxic culture and test whether toxic culture exists in
management institute.
5. To study relationship between negaholism and toxic culture.
Negaholics and Negaholism
Negaholics are omnipresent and it is really unfortunate to observe the increase in
number. Negaholics are major source of spreading negativity at workplace. Negaholism is
dysfunctional, counterproductive and contagious in nature. It spreads like any epidemic in the
organization. Negaholics carry a negative attitude towards work and creating controversy,
they divert the attention of the group and make the group stray. Negaholics are selfish, too
much critical, risk averters, impulsive decision-makers and have problems with their peers and
superiors.
The 14 different types of Negaholics are
Fig 1 : Types of Negaholics

Manipulator:
Who tries to manage the situation in his favour and try to show that the work is
going on but the fact is that work may never get completed.
Gossiper:
Interested in gossiping. They waste their time on irrelevant tasks and are engaged in
discussing politics, sports, affairs, parties, etc.
Grumblers:
They continuously keep on complaining the system, atmosphere, colleagues, etc. and
keep on postponing the allotted work.
I know all:
Individuals who wear' know it all' attitude. They perceive that they know
everything and never analyze before accepting work. They exaggerate their capabilities
and capacities and later on faces many difficulties.
INCON - XI 2016 42
I don't know:
Who carry 'I don't know' attitude. They refuse to shoulder responsibilities by saying
that they do not know how to do a particular job.
Silent:
They are misfit for team working and do not enjoy the company of others.
Intimidators:
They form small informal groups and more involved in politics. They create fear of social
boycott and distract others from work.
Others are not doing:
They blame their counterparts for not performing and not completing their tasks.
Show is on:
They manage to convince others that it is because of them that work is being done and the
show is on and make themselves unnecessarily important.
No people skills:
They are master in technical skills but is least capable of interacting with others.
They lack in soft skills.
Social Butterfly: Talkative
Who spend their time in interacting with others and pose a problem by asking too
many questions
Rookies:
Individual with less experience or fresh graduates are referred to as rookies and
having their own ideas and philosophies which might be different from the those of
organization. Rookies might consume or waste the time in getting familiar with the
environment by asking questions, seeking advice.etc.
Over Sensitive:
Who are highly emotional? They lack in emotional intelligence and waste time by
reacting emotionally to the surroundings and co-workers.
Toxic Cultutre
Characteristics of Toxic Cultures
1) They become focused on negative values. They make work better for adults, even if it
takes away from students. They conduct routine boring classes that follow the rules.
They serve only a small group of elite students and spurn others who deserve to learn.
They focus on primarily achieving outcomes that are unimportant, too basic, or
undemocratic.
2) They become fragmented; meaning is derived from subculture membership, anti- student
sentiments, or life outside work.. Schools are isolated cells that people enter in the
morning and leave at night. Isolated but powerful departmental or grade-level fiefdoms
INCON - XI 2016 43
rule the roost. They form small cohort groups ... subcultures ... (with] significant
fragmentation increases friction and leads to sabotage and outright warfare.
Fragmentation decreases the sense of shared mission and purpose. Staff members, like
teachers, go through the motions. Little cooperation takes place.
3) They become almost exclusively destructive. Teachers talk about faculty meetings like
they were Sarajevo fire-fights, with everyone 'sniping' and 'attacking' each other. Groups
of 'negaholics' harass and attack anyone who is trying to improve the situation, develop
new instructional techniques, or simply behave in a professional way. Teachers and
staff spend their energies protecting themselves, hiding out, or withholding
participation.
4) They become spiritually fractured. There is often a lack of positive values or any sense
of integrity. Most people display a sense of anomie, hopelessness, narcissism,
unreflective mindlessness, or 'undeadness' (a condition between being alive and
being dead).
Research Methodology
The study of Negaholics (Negativity at work place), Toxic culture within organization,
Management Practices followed and the views of teachers about Management Policies is
conducted. A survey is conducted by circulating questionnaire containing questions related to
Negaholics and Toxic culture. Total 89 respondents participated in survey.
Negaholics Score
The Negaholics score is computed by assigning score to each type of negaholics as 2 for
Not at All, 1 for Sometimes and 0 for Always and for some questions 2 for Yes and 1 for No
answer. There are total 19 questions related to 14 types of negaholics. Thus the maximum
Score if all negaholics characteristics are shown then it will be 38. We say that some
characteristics are shown occasionally this the score obtained by respondent may be less than
38 but will be higher than 15. The negaholics score distribution is shown as frequency as
below.
Table 1: Negaholics Score
Score Frequency Percent Valid Percent Cumulative Percent
13.00 12 13.5 13.5 13.5
14.00 12 13.5 13.5 27.0
16.00 21 23.6 23.6 50.6
17.00 12 13.5 13.5 64.0
18.00 32 36.0 36.0 100.0
Total 89 100.0 100.0
Hypothesis 1:
There exists one or more type of negaholism in teachers members of management
institute.
H10: There exists at negaholics in teachers members of management institute.
µ >= 15
H1a: There is no negahlics exists in teachers members of management institute.
INCON - XI 2016 44
µ < 15
The hypothesis is tested by performing One-sample T-Test.
Table 2 : One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Negaholics Score 89 16.1798 1.82509 .19346
Table 3 : One-Sample t-Test
Test Value = 15
t Df Sig. (2-tailed)
Negaholics Score 6.098 88 .000
Interpretation : The mean of negaholics score µ is 16.1798 which is higher than 15 and
t-test results as the P-Value is < 0.00001. The result is significant at p < 0.05.
Thus the Null Hypothesis “There exists at negaholics in teachers members of
management institute” is accepted and Alternative Hypothesis is rejected.
Hypothesis 2 : Male and Female shows same negaholics behaviour.
H20: Male and Female shows same negaholics.
µm = µf
H2a: Female shows more nagaholics than male.
µm < µf
The hypothesis is tested using independent sample t-test as follows
Table 4 : Group Statistics
Gender N Mean S.D. S.E. Mean
Negaholics Score Male 35 16.3714 1.41600 .23935
Female 54 16.0556 2.05046 .27903
Table 5 : Independent Samples Test
Levene's Test for Equality t-test for Equality of
of Variances Means
F Sig. t df Sig.
Negaholics Equal variances 8.729 .004 .796 87 .428
Score assumed
Equal variances .859 86.602 .393
not assumed
Interpretation : Male has mean score 16.3714 and Female has Mean Score 16.056 it
means both has score approx. Equal to 16. And the p value is 0.004 which is less than 0.05
thus Null Hypothesis “Male and Female shows same negaholics” is accepted and
Alternative Hypothesis is rejected.
Hypothesis 3 : Toxic culture exists in Management Institute.
H30: There is toxic culture within organization.
µ >=13
INCON - XI 2016 45
H3a: There is no toxic culture within organization.
µ < 13
The hypothesis is tested using one sample t- test.
Table 6 : One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Toxic Culture Score 89 13.63 1.681 .178
Table 7 : One-Sample t-Test
Test Value = 13
t df Sig. (2-tail) Mean Difference
Toxic Culture Score 3.531 88 .001 .629
Interpretation : The P-Value is 0.001. The result is significant at p < 0.05. Thus Null
Hypothesis is accepted.
HYPOTHESIS 4 :
There is a relation between negaholics and toxic culture within management institute.
H40: There is relationship between negaholics and toxic culture.
N T
H4a: There is no relationship between negaholics and toxic culture.
N ≠T
The hypothesis is tested using Non Parametric Correlation Kendall’s-tau method.
Correlation
Table 8 : Non Parametric Correlation
Negaholics Toxic Culture
Score Score
Kendall's Negaholics Score Correlation 1.000 -.198*
tau_b Coefficient
Sig. (2-tailed) . .022
N 89 89
*
Toxic Culture Correlation -.198 1.000
Score Coefficient
Sig. (2-tailed) .022 .
N 89 89
*. Correlation is significant at the 0.05 level (2-tailed).
Interpretation: The correlation is –ve significant as p value is 0.022 which is less than
0.05. As Negaholics decreases the toxic culture decreases. Thus Toxic culture is dependend
on Negaholics. Thus the Null Hypothesis is accepted and Alternative Hypothesis is rejected.
Conclusion
 More than 50% of teachers show sign of nagaholism.
INCON - XI 2016 46
 One of other kind of negaholics exists in Teachers.
 Male and Female teachers shows same sign of negaholics.
 The negaholism and toxic culture are related. Becuase of negaholism toxic culture is
developed within organization.
Recommendations
1. Avoiding Negaholics
Teachers show at least one type of negaholics within them and negaholics exists within
Management Institutes. To reduce negaholics following recommendations are suggested.
 Gossiping should be avoided at work place.
 Each teacher should be involved in work. Programs like Team Building, Effective
Manager etc. Should be conducted to avoid I-Don’t-Know behaviour of teachers.
 All work should be clearly defined to avoid manipulations within it.
 Motivational Activities should be conducted to reduce emotions and oversensitivity
towards work.
 Healthy environment should be created to avoid grumbling.
 Work of everybody should be appreciated and job rotation should be done so that each
can do most of the job. This is avoid I-Know-All attitude of some employees.
 Identify Silent members and inspire them to participate in activities.
 Avoid forming small groups and politics within organization. This can be avoided by
Team Building and Motivational Activities.
 Warn Talkative and Social Butterfly type of people.
 Design proper reporting system to avoid others not Doing type of complaints.
 Establish better interaction and communication system within organization.
 Overall to deal with negahlics within organization follow following
 Effective Communication conveying - what is expected from them
 Follow Open Door Policy
 Don't fuel Grapevine (unnecessarily)
 Develop a work mind - Don't encourage unproductive activities
 Provide ample opportunities as per capabilities and capacities
 Transparency and healthy organization tradition for trust and mutual respect
 Increase Accountability by asking for suggestions and solutions for the problems
 Inculcate the habit of team work in the organizational settings
 Countercheck that they are not taking undue advantage of other performing team
members
 Objectivity to be followed with carrot and stick
 Approach after performance appraisal
 Follow the principle of Management by Exception in certain cases
 Training in case of operational problems, specifically for rookies
 Counselling Method
 Warning - in worst cases
 They should be warned about the outcomes of their behaviour and its
consequences they might have face
INCON - XI 2016 47
 Treat each individual in a specific manner
Avoiding Toxic Culture
Toxic culture can be avoided, if following steps are followed.
 Engage employees in Productive work.
 Develop positive and flexible culture.
 Create credibility amongst employees.
 Develop initiative and ownership amongst employees.
 Employee should concentrate on focus, structure, and discipline.
 Continuous adaptation to changes should be implemented.
To avoid toxic behaviour of employees preventive measures are to be taken as follows.
Primary Prevention :
The most powerful prevention strategy is using practices that prevent people with these
traits from being hired in the first place. Approaches like self-assessment instruments and "360
degree" observer ratings work better in detecting potential problems should be used.
Secondary Prevention: It is also valuable to detect problems early and intervene to
minimize its harmful impact. This means detecting the behaviours early in a person’s tenure
and minimizing its impact. This can involve providing some education and coaching about
toxic behaviours.
Tertiary Prevention: If all attempts at primary (selection) and secondary (early
detection/management) prevention are ineffective, the only thing left to do is let the employee
go before even more damage is done.
REFERENCES
[1] What is a Negaholic - by Mr.Chistopher Thompson, President Catch 22 Solutions
available from www.catch22solutions.com
[2] Negative or Unproductive Co-workers have nothing to do with you – by Ms. Ruth Klein,
Management Consultant to Fortune 500 available from www.ruthklein.com
[3] Dealing with Negaholics – a presentation by Dr.George Anderson at 2008 TMHRA
Conference, South Padre Island.
[4] Dealing with Negaholics – an article by Dr. Vikas Shrotriya in HRM Journal, ICFAI
March 2009.
[5] Book Review of Toxic Cultures by Dr. Deal and Dr. Peterson
[6] Shaping School Culture The Hearl of Leadership by Deal. Terrence and Kenr Peterson.
(1999), San FranCISCO. California, Jessey-Bass Publishers. pp 121·122.)
[7] Negaholics: How to Overcome Negativity and Turn Your Life around By Cherie
Carter-Scott (Author) , Ballantine Books Inc. (1 Jun. 2000)
[8] Avoid a toxic school culture by being a Mythbuster by Richard Bruford on site
http://connectedprincipals.com/archives/11645 )

INCON - XI 2016 48
Role & Challenges for HR in Retail Industry in Indian Context

Swati Manoj Yeole, Swapnisha Pankaj Khambayat
(Asso. Prof.) (Asso. Prof.)
ASM’s IBMR Chinchwad, Pune 19 ASM’s IBMR Chinchwad, Pune 19
swatiyeole@asmedu.org swapnishakhambayat@asmedu.org
ABSTRACT:
The Retail Industry is a Service industry and people are its most critical resource.
It has built a very competitive environment. People management is very critical as it
involves cost and revenue generation. In India, it is a growing industry. Provides
employment to large numbers of people. Shopping malls contribute to business more
significantly than traditional markets, which are viewed as a simple convergence of
supply and demand. Shopping malls attract buyers and sellers, and attract customers,
providing enough time to make choices as well as a recreational means of shopping.
However, competition between malls, congestion of markets and traditional shopping
centres has led mall developers and management to consider alternative methods to
build excitement in customers. . The present study will provide a clear picture on the
issues related to the HR practices and its impact on employees. The study will also focus
on the various problems and challenges faced by the HR department in procuring and
retaining the employees of organized retailing companies.
Key Words: Retail sector, Shopping Malls, HR practices.
Introduction:
India is one of the largest retail destinations globally with a size of US$ 450 billion. It
has been growing at 7% per annum with a contribution of 14% to the national GDP. Global
Retail Development Index (GRDI) 2011 has ranked India as the fourth most attractive nation
for retail investment, among 30 emerging markets.
According to the 10th Annual Global Retail Development Index (GRDI) of A.T.
Kearney, India is having a very strong growth fundamental base that’s why it’s the perfect
time to enter into Indian Retail Market. Indian Retail Market accounts for 22% of country’s
GDP and it contributes to 8% of the total employment.
In India though, organized retail accounts for app. 5 -6% of total retail revenues,
however, with a young population, increasing disposable income, changing life styles and a
robust economy India is set to emerge as one of the fastest growing organized retail markets
in the world.
Organized retailing refers to trading activities undertaken by licensed retailers, i.e. those
who are registered for sales tax, income tax, etc. These include the corporate backed
hypermarkets and retail chains and also the privately owned large retail businesses.
Unorganized retailing, on the hand, refers to the traditional formats of low cost retailing, for
example, the local kirana shops, owner manned general stores, convenience stores, hand cart
and pavement vendors etc.
The first few companies to come up with retail chains were in textile sector, for
example, Bombay Dyeing, S Kumar's, Raymond’s, etc. Later Titan launched retail showrooms
INCON - XI 2016 49
in the organized retail sector. With the passage of time new entrants moved on from
manufacturing to pure retailing Retail outlets such as Food world in FMCG, Planet M and
Music world in Music, Crossword in books entered the market before 1995.
Literature Review:
The size of the domestic market, particularly the burgeoning middle class of over 350
million people, is providing the desired growth impetus to the retail industry. Young consumer
market with over 65% of the population under the age of 35 years which is relatively well
educated and economically active is fuelling the Indian retail Sector growth. Rising per capita
income is helping the sector grow. Research shows a constant increase in per capita spend
since 2010. There are 46 shopping mall exists in Pimpri Chinchwad area. With this growing IT
hub and traditional automobile hub in Pimpri Chinchwad‘s increasing population- younger
generation is active in fuelling the shopping malls. Total retail spending is estimated to double
in the next five years.
The food and grocery format is the highest contributor to the retail sector with the
maximum contribution coming from traditional retailing, while penetration of modern retail is
highest in the clothing and fashion segment, at 23% of the growth. From traditional
neighbourhood stores, super markets, hyper markets, department stores and specialty stores
have emerged. The Indian consumer is spoilt for choice and continues to be grossly pampered
by retailers.
Online retail format, which is around 6% of the total e-commerce segment, is estimated to be
growing at a Compound Annual Growth Rate (CAGR) of 70%.
Assuming one front end customer associate for every 300 square feet of retail space
created India would need approximately an additional 2,10,000 customer associates in the next
three years. Jobs in the organized sector includes those at the malls, discount formats ,stop
over formats such as those within the petrol bunks, departmental stores, brand retail chains
,specialty retailers, hypermarkets ,supermarkets in a cross section of products and services –
fashion, food, grocery ,consumer durables ,FMCG ,lifestyle goods etc. newer formats like
cellular/mobile shops, retailing by IT voice and video applications etc. will be dominant in
offering jobs in retail –especially front end sales and customer service jobs. The following
table depicts the human capital and its share in organized retail.
Human Capital In Organized Retail (% Share)
Retail Forms Percentage share
Food & grocery 17%
Beauty & body care 3.56%
Books, music & gifts 13.08%
Pharmacies 2%
Jewellery& watch 10%
Footwear 32.84%
Clothing & textile 36%
Home décor & furnishing 8.76%
Consumer durables 17.04%
INCON - XI 2016 50
Source: http://www.docstoc.com/docs/27855682/An analysis of Indian retail industry
Retail Stores formats in India:
Hyper marts/supermarkets: large self servicing outlets offering products from a variety
of categories.
1. Mom and pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.
2. Departmental stores: : are general retail merchandisers offering quality products and
services.
3. Convenience stores: are located in residential areas with slightly higher prices goods due
to the convenience offered.
4. Shopping malls: the biggest form of retail in India, malls offers customers a mix of all
types of products and services including entertainment and food under a single roof.
5. E –trailers: are retailers providing online buying and selling of products and services.
6. Discount stores : these are factory outlets that give discount on the MRP.
7. Vending : it is a relatively new entry, in the retail sector. Here beverages, snacks and
other small items can be bought via vending machine.
8. Category killers: small specialty stores that offer a variety of categories. They are
known as category killers as they focus on specific categories, such as electronics and
sporting goods. This is also known as Multi Brand Outlets or MBO's.
9. Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Chinchwad's Crossword Book Store and RPG's Music World are a couple of
example.
Human Resource Management in organized retail
 Recruitment: Depending on the size of the number of vacancies or if it’s a new store
then campus recruitment is done or recruitment is done through recruiters and
consultants. For shop floor sales requirement advertisement is put up in the local news
papers.
 Selection: Selections are based on group discussions & interviews. Some retailers take
an entrance test followed by group discussion and personal interview.
 Performance Appraisal: It is one of the most controversial systems within human
resource. No one in any organization is ever happy with the system because it explores
the bitter truth of an employee. It is inherently conflict based because it is subjective and
differs from person to person.
 Training and development: Retail industry has finally taken shape in India, and is
experiencing a rapid growth. Since organized retail is growing tremendously procuring
trained human resource for retail is a big challenge. The talent base is limited and with
the entry of big retailers in the market there is a huge demand of trained and skilled
professionals in this sector. This has led many retailers to introduce Learning and
Development department within the organization.
 Compensation: Compensation is payment for services rendered to an organization by
an employee. Compensation may me direct or indirect compensation & is a motivator
for employees at all levels.
INCON - XI 2016 51
 Rewards, Incentives and Recognition: Every retailer is looking at various ways to
motivate their employees and reduce attrition rate. Introduction of rewards, incentives
and recognition of employee is increasingly becoming popular within the industry.
Retailers like PRIL have launched PERK Performance Enhancement Reward Kit and
star performer of the month in their stores. They are used to reward performance at the
individual, team and organizational level.
 Employee Discipline: It is a management tool to correct employee behaviour
The present study will provide a clear picture on the issues related to the HR practices
and its impact on employees. The study will also focus on the various problems and challenges
faced by the HR department in procuring and retaining the employees of organized retailing
companies in area of Pimpri Chichwad. The study is exploratory which uses the secondary
data for its major data source. The secondary data has been collected from Books, Periodicals,
News papers, Journals, Internet. To have support we have visited the HR managers of the 5
shopping malls and analysed the discussion of the same.
Objectives:
The major objectives of this study are:
1) To study the human resource management practices pursued in the organized retailing
2) To study the role and scope of HR in retail sector.
3) To study the various problems and challenges ahead for HR managers in the
implementation of HRM practices in organized retail outlets.
Data Analysis:
Current HR Challenges
Company Strategy. HRM has to adapt its entire program to the company’s overall vision
and strategy. It is known that organizations with good human capital management generally
create substantially more shareholder value than other companies. The significance of human
capital is especially visible in the case of a merger. The success of a merger depends much
more on the competencies of the staff and management than on other aspects, such as finance,
IT, and production. Hax and Majluf (1991) feel that it is therefore essential for well-planned
practices and highly efficient HR functions to be aligned with the business of the company
concerned. An HR strategy must be “comprehensive” in the sense of addressing all the
different personnel and HR activities central to the long-term development of the firm’s
businesses. HRM departments have to conceptualize and structure business plans with detailed
operations extending from the current to the future state of strategy, organization, and action.
These must be based on the organization’s mission and common values.
 Added Value Management. This confronts HRM with the critical question of what
actions add measurable value to the business. There is less certainty about the central
direction and more about committed management setting the right tone within the
organization for defined values to flourish. Commitment in the form of personal
engagement and belief in the organization and its concepts is important. HRM has to
support this by elaborating concepts and criteria for their evaluation, some of which
INCON - XI 2016 52
should be revised annually. The following behavioral aspects of the workforce should be
included in the HRM concept:
 Personal Honesty and Integrity
 Self-Motivation and Entrepreneurial Style
 Ability to Communicate the Values and Benefits
 Encouraging Others to Want to Work with the Company and Share Its
Values; Pride in the Company
 Training and Developing, Coaching and Mentoring: Developing People.
 Change Management. The most important drivers for change are globalization,
technology, and a workforce that is increasingly knowledge-based .Ulrich has stated that
there is a need to redefine firms’ performance less in terms of cutting cost and more in
terms of profitable growth (Ulrich 1997). Managers have to be able to make changes
happen of their own volition and also to support the company in its drive for sustained
success. Managers have to be able to empower their own staff. Moss Kanter (1989)
states that it is only through true empowerment that staff will really contribute to the
changing needs of a business, since they will then be doing things because they
understand them and for the right reasons, thinking and reflecting on the changes and
their likely impact, and above all feeling at ease with the implementation of change.
Change management recognizes the need to reflect on the manager’s role in the
management of change, the identification of problems, and the ability to make changes
in either a programmed or a non-programmed manner. HRM has to take account of the
risks required for the achievement of change in the company.
 Recruitment and Retention. Employee recruitment and selection is one the most vital
HR functions. However, the retail industry is faced with difficulties in attracting highly
educated people. Nonetheless there is a positive trend for change. The challenge for
HRM is to show the attractiveness of the retail sector and ensure that appropriate
training and careers are available, so that this sector can take a leading place in the
competition for available talent. Retail has recently been promoting opening up access to
its workforce by declared rejection of discrimination on the grounds of gender or race,
and, lately, also by employing more elderly persons. It is also necessary to build up
programs for part-time workers. The ability to value diversity within the workforce is a
strength, provided that this is backed up by continuous training and correctness. Many
organizations run courses on this aspect, usually under the title of “Increasing Self-
awareness,” as the ability to understand one’s impact on others is a powerful skill. Next,
retention focuses on the goal of keep well-performing staff in the company. This
depends not only on interesting work, fair compensation, and a motivating climate and
management culture, but also on transparent and achievable career paths combined with
a supportive management that provides guidance.
Employability and Continuing Education.
This is a major area of challenge to most employers, but especially those who employ
large numbers of staff, as retailers do. Staff have to take retraining in order to adapt to a
constantly changing external environment. It is a question of mind-set, working environment,
and attitude towards self-responsibility. The future will be characterized by the following
needs, amongst others:
INCON - XI 2016 53
The need to handle increasing complexity
The need for continual enhancement of the management skill sets known as “Life-
Long Learning,” i.e. the ability to adapt to changing environments, challenges and
technology.
 The need for a positive attitude to newly emerging opportunities: Managers themselves
have to become life-long learners. This is of particular importance to the changing
generations. The process can be aimed, for example, at obtaining further business
qualifications, such as an MBA, a marketing diploma, or HRM qualifications, or
attending training courses on key skills, such as leadership, or personal development
workshops. Some universities are now offering master’s degree courses on work based
learning in which projects are directly related to the learning environment of the
individual student’s workplace. Analysis of actual work problems can be counted as a
credit toward an MA or a MSc. Classroom training fostering positive acceptance of new
structures, topics, and technologies is necessary.
 The need to communicate regularly and precisely, and transmit meaning and values:
While the company will provide support, it will be the individual managers who have to
“drive” their own learning and that of others in periods of intense change, often using
technology such as video conferencing or E-learning / blended learning to pursue their
studies. HRM needs to consult with managers on how best to use modern methods.
 The need for creative management: This can be the way to bring new insights into
common view or to introduce new issues as an area for the HRM specialist to develop.
Many managers are locked into their own reality or their own version of their world,
allowing themselves to be trapped into a mind-set of either success or self-perpetuating
failure. One growth is for managers not to allow themselves to be trapped in a “psychic
prison” (Morgan 2001) of their own making, causing them always to see retail in one
dimension only
The need to manage attrition: According to the Deloitte Compensation Trends Survey
2013, the major reason for attrition as indicated by participating companies were:
 Better career opportunities
 Better pay elsewhere
 Pursuing further studies
Suggestions:
Over viewing the above mentioned data and its analysis we can predict following
suggestion the HR professionals in the organised retail sector in India.
1. Strong Training: A lot of emphasis on development of internal talent pool via
development centres and assessment centres and they can introduce Rigorous training
calendar for front line as per availability of time and manpower without peak hours
2. Compensation pegged higher than other formats : Strong reward & recognition programs
3 Career Movements based on certain curriculum and tests: The tests comprise of product
knowledge, process knowledge & customer service Whenever a new store comes up,
internal hiring is undertaken. Old employees move to new stores. All of the above have
resulted in attrition of less than 30% for this company. Other prevailing practices
adopted by companies to address attrition.
4. Competitive incentive schemes for stores : Celebrating retail incentive day, etc
INCON - XI 2016 54
Find the right talent that is willing to commit over the long-term: Many retailers have
taken various measures to control attrition – a prevailing issue in the sector. Companies
typically track attrition very frequently by formats, location and levels. Post roll out of
initiatives, companies have experienced reduction in attrition.
Conclusion:
Retailers today are focused on drawing customers into the stores to drive sales while at
the same time reducing cost overheads. On the other hand, this poses huge challenges with
respect to dealing with the short supply of qualified, future-ready talent, sustain-ing high
performance and retaining key talent.
The HR needs to come up with new initiatives for the welfare of the staffs. They should
provide recreational facilities to them, at-least once in a month the HR needs to interact with
every individual employee and address to their personal issues, and need to highlight the same
to the management.
The HR also needs to be involved with the team, understand the effort they are putting in
while working for extra hours, around fifteen to eighteen hours. The HR’s job is a tough job as
he has to cater to employees.
Beyond the impact of globalization and mergers and acquisitions, retail organizations
continue to struggle with the recruitment of service-oriented employees. Therefore, the key
question for the retail organization in India is how they can sustain high performance whilst
battling both economic challenges as well as talent shortages, the given suggestions can
definitely assist HR professional to keep themselves safeguarding the organisational culture so
that their ultimate goal of earning profit can be achieved.
REFERENCES:
[1] www.ripublication.com
[2] https://www.academia.edu/people
[3] http://www.ripublication.com/gjfm-spl/gjfmv6n6_01.pdf
[4] http://www.researchgate.net/publication/225885005
[5] http://www.slideshare.net/hemanthcrpatna
[6] http://indianresearchjournals.com/pdf
Books:
 HRM by K. Aswatthapa 9th edition
 Research Methodology by Kothari C R 5th edition

INCON - XI 2016 55
Study on Recruitment through Social Media Networking Sites

Miss. Shraddha Prakash Shinde
Assistant Professor,
ASM’s Intitute of Business management & Research,
Chinchwad, Pune(MS), India
Email Id: shraddha.shinde88@gmail.com/ shraddhashinde@asmedu.org
ABSTRACT:
Current challenges and changes in technology and the role of the Internet open up
new opportunities for companies to communicate and work. The fact that Social
Networking Sites entered the business landscape, and in particular there recruitment
landscape leads to a demand for knowledge about recruitment trends regarding Social
Networking Sites. With this study the phenomena of Social Networking Sites in
recruitment was explored. Knowledge was acquired by making use of primary research
i.e. a survey, conducted in Institute along with a comprehensive secondary research.
To what extent does the use of Social Networking Sites lead to effective
recruitment? To answer the research question and to detect the extent to which the use
of Social Networking Sites leads to effective recruitment, a research model was
established in order to find relationships between the qualities of Social Networking
Sites and effective recruitment. The chosen qualities of sites were information quality,
popularity, networking scope, ease of navigation and security/privacy. Effective
recruitment is characterized by the diversity of applicants, the quality of
applicants/applications, the costs, the time and the target group orientation.
Keywords: Business Landscape, Effective Recruitment, Networking Scope.
Introduction:
The recruitment and selection is the major function of the human resource department
and recruitment process is the first step towards creating the competitive strength and the
strategic advantage for the organizations. Searching for, and obtaining, potential job
candidates in sufficient numbers and quality, and at the right cost, for the organisation to select
the most appropriate people to fill its jobs. Selection is the process of gathering information
for the purposes of evaluating and deciding who should be hired, under legal guidelines, for
the short and long term interests of the individual and the organisation. Recruitment refers to
the process of attracting, screening, and selecting qualified people for a job at an organization
or firm.
Companies are now looking out for new ways of giving themselves a competitive
advantage. New product, new image & new marketing idea are some of the ways. In a
traditional method of recruitment, the company would have to initially invest an amount for
the advertising of a 'situations vacant' column in a newspaper or a magazine or elsewhere, after
which the candidate must apply, after which the candidates who have applied would have to
be sifted through carefully, their various qualifications analyzed and adjudged, and then called
for an interview. There will be many people involved in the entire process, like for example,
the advertiser, the agency that handles the advertisement, and so on and so forth. Today,
however, the entire process has been reduced to a simple enough procedure, wherein all the
INCON - XI 2016 56
company has to do would be to include a short advertisement into their already existing
website.
Prospective employees would simply have to apply directly to the company for the job,
or indicate their interest in working for a particular brand, after which they would be called for
the interview. This means that today, companies have in fact become their very own 'agencies',
which invite the so called 'passive' job seekers into a database for future reference, when jobs
may become available. Those companies that have a high turnover division, such as, for
example, a call center, have been the first to recognize the benefits of e-recruitment, and also
of maintaining a database where the names and other details of potential future employees
may be stored for easy referencing at a later date.
Some company career sites provide a facility for potential employees and job seekers
wherein they may be able to create a personal account with an e-mail address and a password,
and give relevant information about themselves through an online application form, which
would be made available to the employers for their own perusal."
Widely Used Social Networking Sites as New Business Phenomenon
LinkedIn , Facebook , Twitter, Any type of virtual interpersonal communication, Media
with social interaction , Various forms of user-generated content and the collection of websites
and applications that enable persons to interact online ,Transforms people from content
consumers to content producers, x More than one-half (56%) of the organizations currently
use social networking websites when recruiting potential job candidates. This is a significant
increase since 2008, when a little over one-third (34%) of organizations were using these sites
as a recruiting tool. Among organizations that used social networking sites for recruiting, the
most utilized social networking website in 2011 was LinkedIn (95%). This was followed by
Facebook (58%) and Twitter (42%).
The percentage of respondents who believe that social networking websites are efficient
for recruiting non-management, management and executive-level employees has increased
significantly since 2008 Networking sites are changing the way that organizations manage
their talent in several ways:
Firstly, organizations today are able to reach out prospective employees and
communicating to them better easier while building their employer branding;
Secondly, they are also able to create a linkage with their own employees, both because
employees can connect and talk to each other helping in creating a linkage with each other and
also because employers can communicate to them using these forums.
Thirdly, networking sites have become channels to observe and listen what others are
saying about the organization; finally, is also helping organizations to manage their alumni
networks more efficiently.
Objectives:
 To study job portals in recruitment efficacy with relation to manage selection and
retention of employees.
 To evaluate the role of social networking website on business.
 To analyze pros and cons of e-recruitment for organization and for employees.
 To analyze how e-recruitment can affect organizational ability to select and retain staff
INCON - XI 2016 57
This research paper is based upon descriptive analysis and based on secondary data
.Data sources would be internet portals, websites, newspapers, research articles, journals and
papers, business magazines etc.
Exceedingly Used Top 10 Social Networking Sites In India:
1. Facebook: Facebook is the best social networking site at present and the second most
visited site in the world after Google. In India it got the third Rank based on ATR and
this is on the top of our ranking list. Facebook is already most visited social networking
website in many countries.
2. Google Plus ATR of Google+ is 1 in India and it is the First most popular social
networking site in India. Google+ is most popular in Paraguay and Brazil with Alexa
Rank 1 & 1 respectively. Google+ was very popular in India as well as others countries
3. LinkedIn In India, LinkedIn Got the second most used professional social networking
site based on ATR which is 11. LinkedIn is most popular in Netherlands with Alexa
Ranking
4. iBibo Ibibo is currently doing well with ATR 24 in India. Ibibo is the fourth Most
Visited Social Networking Site in India. I think their Social Networking Games like
facebook are helping them to increase the user base and hence the ranking as well.
5. Bharat Student BharatStudent.Com is the 5th most popular Social Networking Website
in India with ATR 57.
6. Myspace Myspace is also most used by Indian Users. They Got ATR 117 in India 117
and Myspace is most popular in US with Alexa Ranking 28.
7. Hi5 Hi5 .Com is also most popular in India with ATR 359 and it is the 7th Most Popular
Site in India. Hi5 is most popular in Angola and Mongolia with Alexa Ranking 6&7
respectively
8. Fropper Fropper is the 8th Most Visit Social Networking Site in India with Alexa
Ranking 647 and mostly used in India.
9. Bwithyou Bwithyou.com is another social networking sites in India and it is the 9th
Most popular site with Alexa Rank 2700. It is most popular in India and USA
10. Perfspot Perfspot.com got the 10 position in this list with ATR 3700 in India. It is most
popular in Syrian Arab Republic with ATR 243 These are some highly used social
networking sites and maintained by the organizations to keep itself updated and to save
time, money and efforts. Basically these sites if utilized effectively may increase the
output and will result in increased productivity.
Job Portals
When it comes to recruitment’s for best jobs in India, Internet is fastest medium to
search relevant job for you. Most of the job sites in India are not only available on laptops but
they do provide Smartphone App to search best job in India. We are listing here top 5 job
portal sites in India.
 Naukri
www.naukri.com Naukri.com is one of the most comprehensive job searches and a
plethora of opportunities. Clean interface provides excellent results across all categories. It
also offers resume building services and resumes flash through web based and sms alerts. It
INCON - XI 2016 58
focuses on matching job opportunities with the applicant’s unique skills and provides a salary
bench-marking and gives good opportunity to freshers and experts too. Easy to manage your
existing account or you can search directly to any job without even login to the job portal.
Quick access to
 Monster India
www.monsterindia.com Monster Worldwide Inc has built a Monster.com so well and
managed it reputation to provide best jobs in India, having the main objective to enable the job
seekers find out about job/career avenue. It allows to keep some of your information
confidential as per your request. User can also define the access level to the every part of your
profile. Nice and easy website layout provides you a comfortable search. Also a facility to
learn about the interview and other things required to do job preparation
 Times Jobs
TimesJobs.com site contains all types of jobs and helps individuals to find out job of
his/her choice. It also offers a separate portal for jobs in Middle East. Quick search to huge
number of job opportunities, filter them based on your skills, designation, location or
experience. It also portray featured employers and companies who are hiring at the current
moment.
 Skillpages
www.skillpages.com Skillpages is an example of the latest trend job site portal, It does
not make you feel bore at all. The user interface is so interesting and look similar to Facebook.
Nice idea of posting jobs and job seekers can directly reply or contact to the company or
individual. Build your network on Skillpages and recommend true people you know to help
them getting correct job. This job searching Website for India has found the way to search job
by doing social network.
 Glassdoor
www.glassdoor.com Glassdoor gives an opportunity to have an inside loot at jobs and
companies. Take a company reviews, salaries from the best companies and cool interview tips.
It also gives a detailed analysis to salaries from best companies of India by category wise.
Other Job Site in India to Explore:
 www.clickjobs.com
 www.bixee.com
 www.shine.com
 www.careerjet.co.in
 www.careerage.com
 www.fresherscafe.com
 www.fresherswalkin.com
 http://www.freshers.in/
 http://www.elitmus.com/forums
 http://presentjobs.com/
 http://afterbtech.com/
 http://www.freshersplanet.co.cc/
 http://www.freshersway.com/
 www.ksrceplacement.blogspot.com
INCON - XI 2016 59
 www.presentjobs.com
 www.expertjobs.org
 www.it-walkins.com
 www.careerenclave.com
 www.referral-openings.blogspot.com
 http://www.chetanasforum.com/
 http://www.durgajobs.com/
 http://jobs.freshersworld.com/jobs
 http://www.elitmus.com/
 http://www.firstnaukri.com/
 http://www.afterbtech.com/
 http://www.sarkari-naukri.blogspot.com/
 www.TalentPool.asia
Impact of Social Networking Sites and Job Portals on Business and Recruitment
Contact with employees can be difficult for management. Social networking websites
provide an opportunity for management to have faster contact with their subordinates. If there
is an issue that needs immediate attention, a manager can send a message through social
networking websites and the internet to their employees to get the information they need to
make a decision.
According to Swartz (2008), “corporate social networks also cut down on unnecessary e-
mail and instant message among co-workers.”
Social networking websites reduce the amount of time it takes for a job to be completed
because they cut down the amount of time it takes for employees and management to contact
each other. Information is easily found through the Internet. Social networking websites can be
one of the fastest ways to obtain information. “Organizations are actively leveraging the
power of social networks to find new business opportunities, new groups of like-minded
individuals and companies, and new sources of industry specific wisdom, advice and
expertise” (Wilson, 2009).
Social networking websites allow companies to find and share information about
different marketing strategies and techniques. Among the benefits of social networking in the
workplace, company presence can be maintained. Social networks can act as an advertising or
marketing tool to help the company reach out to both potential employees and customers.
Wilson (2009) says “a logical extension of this is to employ people to spend their
entire day maintaining the sanctioned company presence on various social network sites,
acting as a company’s ‘voice.’”
Data Analysis And Interpretation
 Student Accessing Internet Daily.
Most of students are using social networking sites as they are spending their most of the
time by accessing the internet daily and being final years, they are searching the jobs on online
and also updating themselves what happening around in and out of the world make them to
aware about social media recruitment that they can post or send their resumes to such sites.
INCON - XI 2016 60
Some of the final year students are not aware of it, just because of they are depending on
campus recruitment and not involving or spending their time by using social sites.
Table 1: Calculation of statistic of student accessing internet daily.
Frequency Percentage Cumulative Frequency
Yes 36 80.00 80.00
No 9 20.00 100.00
Total 45 100
 Awareness about social media recruitment.
To know the satisfaction level of the jobseekers,it has been found that most of the
students are satisfied, some are very satisfied by applying the jobs on social sites, they felt its
very useful to know about the details of jobs, and companies, also shared that those sites quick
in responding and so easy to search the jobs. Some are got the job on LinkedIn but due to
some personal issues they didn't join.
 Calculation of statistics of effective social site for recruitment.

To know which social site leads to effective in recruitment, management and
consultancies are saying that LinkedIn will be the effective site for recruitment over the next
few years as it will build the corporate relationship between the management and jobseekers.
Some are saying that face book, as it having the separate application of Branch out which
connects or establish the corporate relation and others like Naukri.com, Monster.com and their
own websites.
Table 2: Calculation of statistics of effective social site for recruitment
Facebook 15 33.33 33.33
Linked in 28 62.22 95.55
INCON - XI 2016 61
Others 2 4.45 100
Total 45 100
 Calculation of statistics for knowing the effectiveness of social site in recruitment.

To know the effectiveness of social sites in recruitment, management and consultancies
are saying compare to other method of recruitment, recruitment through social networking
Sites are effective tool as it is the cost effective.
Table 3: Calculation of statistics for knowing the effectiveness of social site in
recruitment.
Agree 37 82.22 82.22
Not Agreed 8 17.77 100
Total 45 100
 Calculation of statistics for knowing the source which will help to get the quality
candidates.
To know the source, which will helps to get the quality candidates, it has been identified
that most of the HR managers and consultancies are agreed that they will hire the quality and
right candidates through the sources like direct sourcing, internal transfer and social
networking sites and some of them also get the quality candidates through search engines like
goggle, goggle plus, yahoo.com etc and campus recruiting as most of the students are passed
out every year.
Table 4: Calculation of statistics for knowing the source which will help to get the quality
candidates
Strongly Strongly
Source Disagree Neutral Agree
disagree agree
Referral 0 5% 15% 45% 35%
INCON - XI 2016 62
Strongly Strongly
Source Disagree Neutral Agree
disagree agree
Direct Sourcing 1% 3% 8% 42% 46%
Internal Transfer 2% 7% 12% 35% 44%
Social Networking
2% 9% 15% 49% 25%
Sites
Corporate Career sites 5% 6% 25% 35% 29%
Campus Recruitment 8% 12% 24% 48% 8%
Search Engine
7% 6% 28% 35% 24%
Optimization
Findings and Suggestion

The major findings of the study of recruitment through social networking sites- 80 % of
students are accessing the internet daily and also found that 20% are not accessing the internet
daily which helps the companies to get huge quantity of candidates. It has been found that 100
% of students are on face book and 85 % on LinkedIn, 78 % are subscribed Naukri.com,
which helps the students to update with the availability of jobs provided by companies and
consultancies. most of the students are satisfied, some are very satisfied by applying the jobs
on social sites, they felt its very useful to know about the details of jobs, and companies, also
shared that those sites quick in responding and so easy to search the jobs.
If companies start to adopt this method, management can study candidates’ psychology-
lot of information that is available on these sites can be used for understanding the psychology
of the potential candidates and thus helps the company in understanding the employee-job-fit.
This will not only give a boost to successful recruitment but also help in enhancing employee
retention initiatives. By using social sites in recruitment process, employer branding will be
increasing in the business world today.
These sites can be effectively used by organizations to establish themselves as good
employer brands in order to attract the best talents of the industry thus companies has to bring
awareness in job-seekers mind. They need to highlight the benefits and ways in which
recruiters can tap potential talents. Job seekers should start to searching the jobs on such social
networking sites specially LinkedIn as it professional site instead of using those sites for
chatting purpose, depending on campus recruitment, roaming for the jobs from place to pace
etc They should make use those. Companies should have the records and predict about the
social networking sites by popularity and usage wise. Using social networking sites for
recruitment purposes requires site maintenance, in order to ensure that queries are answered
relatively, promptly and sites are updated.
Conclusion:
This paper concludes that Most of the management, job consultancies and students from
graduates as well as post graduates are aware about social recruitment through various social
networking sites like face book, twitter, and LinkedIn. Some of the students are applied the job
on these sites, they are highly satisfied of searching the jobs on social platforms and they have
also got the job but due to some personal problems they didn’t join the company. Job
consultancies and HR managers are revealed their opinion that recruiting through social sites
INCON - XI 2016 63
will be become more effective in the HR functions and it will be low cost of recruitment for
the company compared to other traditional methods of recruitment and also they have felt that
social site like LinkedIn will become more effective tool to search the candidates as it is the
professional site and professional interactions will be carried out. Management and
consultancies are ready to implement this modern method but they feel, need to learn.
REFERENCES:
[1] http://www.slideshare.net/monikakunwar/the-role-of-social-networking-sites-in-
recruitment
[2] A study on recruitment through social media in the IT industry-(International Journal of
Research in IT, Management and Engineering Volume3, Issue12 ISSN: 2249- 1619
www.gjmr.org )
[3] Social Networking Sites: A Fad or a Breakthrough in New Age Recruitment (Global
Journal of Management and Business Research Volume 12 Issue 3 Version 1.0 March
2012 Publisher: Global Journals Inc. (USA) Online ISSN: 2249- 4588 & Print ISSN:
0975-5853)
[4] Recruitment through social media area – Human resources (IOSR Journal of Business
and Management (IOSR-JBM) e- ISSN: 2278-487X, p-ISSN: 2319-7668, PP 37-41
www.iosrjournals.org

INCON - XI 2016 64
Leadership Development And Succession Planning In Manufacturing

Organizations
Yogini Kulkarni
ASM’s IBMR, Chinchwad
Pune, India
ABSTRACT:
With some of the recent examples that has been seen in the spheres of Indian
business, the concept of succession planning has gained quite a momentum in the board
rooms. Industry has experienced smooth crossovers at some of the instances as well as
seen hindrances while succeeding over to the new leaderships. Generally, organizations
tend to fail personnel effectively for leadership development and succession planning.
Identifying and nurturing talent for leadership roles is an essentialpart of succession
planning. For larger interests of the enterprises as well as of the economy, it becomes
extremely crucialand inevitable to have effective succession planning in place. The
objective of this paper is to highlight the sound practices for optimal development of the
leadership in manufacturing sector.Leadership succession is as much an issue for
manufacturing companies as it is for any other businesses. Amidst multiplying
competition from domestic and multinational sectors, dynamic changes on the economic
front, and the inevitable need to globalize, the Indian companies are faced with the
leadership succession challenge like never before.
Current paper will majorly focus on the succession planning in various middle
level manufacturing companies in Chinchwad MIDC. Research will be empirical & data
will be collected through questionnaire & interviews of middle level managers.
Keywords: Leadership, succession planning, leadership development, manufacturing
Introduction:
In a well-managed organization, when executives quit, retire, or are dismissed,
replacements are chosen through leadership succession — an orderly process of identifying
and grooming people to replace managers. Identifying and nurturing talent for leadership roles
is an essential part of succession planning. Succession planning is linked to leadership
development in two important ways. First, grooming a successor is part of leadership
development. Second, the process of choosing and fostering a successor is part of manager’s
own development
The term succession planning is defined as dynamic ongoing business process that
brings together the execution of a strategic business plan with the identification, assessment,
development and deployment of talent to ensure successful continuity of the organization.
The basis on which selection is done solely based on ability, knowledge and skills, after
fair and open competition that ensures all receive equal opportunity. It also means all
employees and applicants for employment should receive fair and equitable treatment in all
aspects of personnel management without regard to political affiliation, race, colour, religion,
national origin, sex, marital status, or age and with proper regard for their privacy and
constitutional rights.
INCON - XI 2016 65
Background of the Study:
With some of the recent examples that has been seen in the spheres of Indian business,
the concept of succession planning has gained quite a momentum in the board rooms. Industry
has experienced smooth crossovers at some of the instances and has seen hindrances at many
places while coming through succeeding over to the new leaderships. Without proper strategy
and well established process, organizations tend to fail personnel effectively for leadership
development and succession planning.
When the employee is getting retired, it will cause a vacuum at senior levels unless talented
employees have already been identified and prepared to provide a pool of candidates to fill
those positions. Without available trained personnel ready to fill the voids left by retiring
workers, the continuity and efficiency of agencies and programs will be negatively impacted.
Objective:
The objective of this paper is to highlight the sound practices for optimal development of
the leadership in manufacturing sector. Leadership succession is as much an issue for
manufacturing companies as it is for any other businesses. Amidst multiplying competition
from domestic and multinational sectors, dynamic changes on the economic front, and the
inevitable need to globalize, the Indian companies are faced with the leadership succession
challenge like never before.
The study of our research is primarily focused on the perceptions of top management in
the manufacturing industry and the implementation of succession planning. The research paper
shall try and elaborate on the 20 best practice manufacturing organizations in and around Pune
on the subject of leadership development and succession planning. The research is intended to
be an empirical one as far as collection of data in terms of information is considered. Further
the research will try to make a qualitative analysis of the data collected.
The outcome of the study would help companies to formulate suitable programs and use
appropriate methods to improve the organizational performance through the practice of
succession planning.
Significance:
With the ever changing structure and working of business, the nature of managing
business has changed immensely. Also with the entry of more educated workforce, their
outlook towards the work has not been quite the same. Many of the entrants may not be
thinking to stick up to the job for a long time like the old days. At the same time due to
increasing competition, organizations are forced to be more and more competency driven than
ever.
These types of situations tend to create a void at various levels after every now and then.
Hence, future performance of any company is reliant on today’s succession planning
leadership development strategies. Over the past several years, it is observed by senior leaders
and human resource personnel within the manufacturing organization that a large number of
service workers become eligible and retire in the near future. Many senior leaders of such
organization fall into this category and the large retirement of these people would create a big
void.
When it comes to training it takes time to identify and develop a pool of candidates for
senior level positions. It can be done through various ways like informally preparing
INCON - XI 2016 66
successors, rely on expediency, by having a documented and robust system etc. It takes many
years to build a culture in an organization. Without training a pool of candidates the
organization would lose program continuity and efficiency when the senior current leader
retires and the new leader is unaware with the previous culture. Thus, it is very essential for all
organizations to develop and implement an effective succession plan in their organizations.
Importance/Benefits of Succession Planning:
“Having right people at right place at right time” appears to be mantra of new business.
Developing a qualified pool of candidates to fill the vacancy, helping employees to understand
their career plans and aspirations, improving their ability to respond to changes at workplace
are some of the key aspects of leadership development.
Succession planning is important part of any business, large or small, family-owned or
publicly traded. It helps the organization to remain successful even after the loss of key
person, providing number of important benefits for companies that develop them. A
succession plan may help in a business to retain key employees, reduce its tax burden, and
maintain the value of its stock and assets during a management or ownership transition.
Succession plans may also prove valuable in allowing a business owner to retire in comfort
and continue to provide for family members who may be involved with the company.
Relevance with the current scenario:
Many of the companies in India and abroad have been in the news for the change of
guard and happenings around it. Some of the key happenings are discussed as below
considering two wide aspects of smooth transfer and hindrances observed during some of the
transfers;
 Anji Reddy, founder and chairman of Dr Reddy’s Laboratories, transferred the shares he
personally holds in the Indian pharmaceutical company to the Reddy family’s holding
company late last year. This was in a bid to ensure “smooth succession”. The transfer
was important because it showed Reddy trusted the next generation to run the business
and control the family fortune.
 Based on Dec 26, 2014 report, Hyundai Motor promoted younger executives, with eye
on succession planning. This would help to smoothen an eventual leadership succession
at the family-owned conglomerate.
 With the announcement of Vishal Sikka as the new CEO of Infosys Technologies from 1
August, the company's one-year experiment in calling back its ageing founder-hero, NR
Narayana Murthy, to reinvent the company has indirectly been declared a failure.
 Murthy was unable to do a Steve Jobs in his second coming, but the board is hoping
Sikka can do a Lou Gerstner, the man who reinvented IBM. In making this change, the
board effectively acknowledges three things. One: the reason is company needed fresh
ideas to lift it out of the low-growth quagmire it has gotten into. Two, Murthy, while he
brought a flurry of action and hope into the company when he was inducted last year,
also brought some baggage with him: his induction saw a procession of senior
executives leaving, including some mentioned as prospective CEO prospects. Three, in a
connected decision, the Infosys board will be ending current CEO SD Shibulal's term
early. The company indicated as much in April when it put out a statement indicating
INCON - XI 2016 67
that Shibulal would like to retire as CEO before his superannuation date of 9 January
2015.
 While there was a different scenario in APPLE. There was simply no way to predict how
Apple would do without Steve Jobs. But that didn’t stop anyone from speculating. Tech
pundit John Dvorak said, “At some point, Apple becomes like a John Wayne movie with
no John Wayne. You begin to notice something is missing. Apple without Steve Jobs is
Sony.”
 When Tim Cook took over as Apple CEO, I had a decidedly different take: “Apple has a
solid foundation as the most powerful and influential technology company on the planet.
It has a unique culture, but one that Steve Jobs built to last, as he knew this day would
surely come for some time now.”
 Cook’s promise that things are going to change. They have to change. There were
related The 9 Best Real-World Strategies Every Entrepreneur Should Know. Don’t fix
what isn’t broken, Keep calm and have faith; don’t try to be what you’re not.
 While Tim Cook has done many things to distinguish himself since joining Apple as
head of operations 16 years ago, his actions as chief executive of this fabled company
have shown him to be a formidable leader that is equal to the challenge, holds him
accountable and sets a powerful example for others. We can all learn from his example.
 The strategy used by the Apple company was; when Steve Jobs resigned from the CEO’s
post, he recommended the name of Tim Cook as the new CEO. As COO, Cook was
previously responsible for all of the company’s worldwide sales and operations,
including end-to-end management of Apple’s supply chain, sales activities, and service
and support in all markets and countries. He also headed Apple’s Macintosh division and
played a key role in the continued development of strategic reseller and supplier
relationships, ensuring flexibility in response to an increasingly demanding marketplace.
 Cyrus Pallonji Mistry took over the charge after the Ratan Tata retires. Cyrus Pallonji
Mistry, Tata Sons' largest individual shareholder, will succeed Ratan Tata as chairman of
the $83-billion (over Rs 4.30 lakh crore) group after a high-profile global search ended
with the selection of the second youngest leader in the group's 143-year history.
Steve Jobs not only represents a brand, but actually a generation of users who
follow in the footsteps of his creativity. The impact that Jobs has had on everyone’s
lives can never be overestimated. Although you’re not always aware of it, his innovations
have affected everything around you, from movies, to computers, music and mobile phones.
The key to Jobs’ success is a combination of quality, innovation, and market strategies
that were designed extremely carefully. They were so effective that Apple managed to
reinvent products that were already available on the market, and got consumers to think
they had never seen anything like them before.
Steve jobs himself was not a brand. His style of promoting a new product had a
very great impact on customers because of which product of apples were succeeded. Jobs
knew the difference between what and why. That Apple makes products for people to get their
jobs done better only address what they do. But here’s Apple’s ‘why’ according to Jobs:
“Apple believes that people with passion can change the world for the better. And those
people that are crazy enough to think that they can are the ones who actually do.”
With the above three examples of Apple, Infosys and Tata Group, it puts up an
interesting case for understanding the very fact and importance of strategies of leadership
INCON - XI 2016 68
development and succession planning. The scenarios can be different depending upon how
effective strategies are being planned by the organizations to identify the persons for key
positions after one generation gets over.
Succession planning involves making tough decisions. Developing a transition or
succession plan takes time. Apple did not complete its plan overnight. It is a fact that if a
business does not develop a succession plan, its chances of surviving into the next generation
are diminished. The lesson to learn from the Apple announcement is to start you’re planning
now – don’t wait any longer.
Literature Review:
Literature review was conducted to recognize and evaluate the merits of effective
succession planning, focusing on role that can help in improving organizational morale and
acceptance on changes. In hopes of gaining deeper understanding the process, some important
and related facts were studied. “Possibly no one previously emphasized on the value of
developing leaders from within. It’s easy to recognize which organization do not follows the
strategy in play: Often hiring the people from outside who do not fit in the culture and style of
the organization. They do not have internal training program”, Ramson (2003).
Succession planning is a deliberate and systematic effort by an organization to ensure
leadership continuity in key positions, retain and develop intellectual and knowledge capital
for the future, and encourage individual advancement (Rothwell, 2001). Succession planning
can also be defined as, a process which ensures the continued effective performance of an
organization by establishing a process to develop and replace key staff over time (King, 2005).
In this context succession planning encompasses not only top management but also a number
of other factors. It can cover issues such as the procedures necessary for a successful transfer,
legal and financial considerations, psychological factors, leadership development, and exit
strategies (Ip & Jacobs, 2006).
A literature review was conducted to identify benefits of succession planning and issues
related to its implementation. A literature review was also conducted to determine if a
succession planning survey was previously done at any workplace and, if done, how it
addressed the issue of succession planning in light of the merit system principles. No
published surveys were found.
The literature review identified five key principles that industry uses in selecting its
executives, which parallel those used in Government succession planning:
 Follow standard principles of human resource selection, such as thoroughly screening
candidates. Speak to several people who have worked with the candidate. Background
investigations are also very important.
 Board members should be closely involved in evaluating highest-ranking managers.
 Leadership succession should not be regarded as a detached, objective management
decision. The emotional aspects of leadership succession should be considered.
 A pool of candidates should be developed for a key leadership position.
 Promote insiders with an outside perspective. Promoting people from within the
organization offers the advantage of more hope to insiders.
The concept of succession planning is an extension of talent management which has
implications throughout the organization which is why organizations need to devise ways and
means of creating, nurturing and managing talent (Cannon and Mc Gee, 2011). While
INCON - XI 2016 69
Rothwell (2010) gives an account of succession planning perspectives, and systematically
explains how to manage and evaluate a succession planning program, Russel Reynold
Associates outline the necessary steps for smooth transition of an organization’s CEO. Comey
(2004) focuses on the need for identifying leadership competencies in order to create a
leadership succession plan process. Berzon and Currie (2006) suggest practical strategies for
succession planning and knowledge management in the California Union Sanitary District to
combat the challenges of a shrinking pool of qualified candidates and the loss of critical
knowledge. Fulmer (2002) gives practical insights into succession planning and recommend
the effective practices followed by companies.
With regard to succession planning in Indian enterprises Vedupuriswar (2002) briefs
about the strategic issues involved in succession planning and also provides suggestions to
manage them. Guruprasad (2010) lists down the issues, challenges and practices of Indian
succession planning in business enterprises. A study by Spencer Stuart reveals the absence of a
strategic approach and therefore lays down the imperatives for doing so. Avanesh (2011)
studies the impact of succession planning on the performance of Indian IT sector. Martinez
and Gadhoke (2012) also profess that in a well-funded high-growth economic environment
India Inc. faces an urgent need to design effective succession planning programs.
Studies related to family-managed businesses in India have also been reviewed as they
constitute a major chunk of India Inc. Rastogi and Agrawal (2010) have studied the intention
of offspring in joining family enterprises. While Ramachandran and Bhatnagar (2012) give an
account of challenges faced by Indian family businesses, Lees and Malone (2012) provide
solutions to managing family businesses. A report based on a study conducted Indian School
of Business (ISB, 2012) states that Indian business families are in a transition mode and are
learning to ‘let go’ of their control and hierarchy for the future of the organization.
With respect to the economic turbulence in the country, Indian business enterprises,
irrespective of their family lineage, have to realize the importance of succession planning as it
not only shapes the future of the organization but also has a bearing on the overall growth of
the country. In this direction it is heartening to know that family-run businesses-which
constitute a major lot of India Inc., are positive in their succession approach (ISB, 2012). With
several Indian companies opting for the route of globalization, the need for capable leaders
and critical employees becomes all the more mandatory for sustained growth. As the economic
growth rate threatens a downturn, India Inc. should feel responsible.
The research is based on the empirical data and is a qualitative analysis of the data
collected through interviews with the HR Managers and higher authorities of the
organizations.
The questionnaire consists of 15 questions. In addition to identifying succession
practices, another key survey goal was to solicit input on issues that agencies might have in
developing and/or implementing their succession plan, and of lessons they may have learned
that might benefit other organizations that have yet to develop their succession plans.
The questions are for depth interview i.e. face-to-face interviews of senior leaders.
Strata:
INCON - XI 2016 70
The 20 companies were selected randomly taking into consideration well established HR
Department and sound leadership development practices with number of training programs
and other activities, in and around the Pune City.
(Due to reasons of confidentiality and privacy we are avoiding to mention the names of the
companies intentionally.)
Research Questions:
The purpose of this research was to evaluate and verify the assumption that
manufacturing companies have succession plans in place for their key senior level positions.
Also, it was intended to verify that the people identified by companies to fill senior level
positions, as they are occur, receive the necessary formal and informal training to prepare
them for leadership positions.
Research Design:
The research carries a qualitative approach. This research was designed to get input on
succession planning from senior leaders of selected manufacturing organization through a
short survey by electronic mail and through face-to-face interviews as per their convenience.
Before the research got started, the senior leaders expected to participate in the survey were
given brief information about the purpose of this research study as well as the survey
questions. At the time of taking interview audio recording was also done.
Observations:
For an organization amongst its various pillars leaders or so as to say the decision
makers are one vital aspect on which the present and future dynamics of the organization is
dependent. It is the valuable resource that has a significant stake in the performance of an
organization. Hence, the practice of Effective Succession Planning is a critical aspect to study
and dwell upon. Whether an employee is being recruited at an entry level or being appointed
laterally; an effective practice of succession planning tries to accommodate every entrant
considering long term objectives of developing the leadership skills or to nurture them in best
possible way. Through the following points we would like to take forward the discussion
citing the observations we at the companies we visited.
 Mere qualification is not often considered as the primary criteria for promotions.
Companies largely rely on performance based mappings, grading system. Potential of
the candidate is often considered as vital aspect while promotions.
 Some companies feel that promotions are some where linked to the jobs. Some
companies think that succession planning is not led down by the promotion but it’s the
capability of the person to handle the next level.
 Of course, in many manufacturing companies, they look out for technical experienced
person at the time of hiring. While hiring a person as fresher they see that how much that
person has a technical knowledge, managerial skill. After recruiting a person they train
them, they give the real life project to work on. Some companies have lateral hiring.
They have good planning for lateral hiring training .Mainly what companies see in any
fresher is he / she should be eager to learn.
INCON - XI 2016 71
 But on senior level there are many parameters that are looked forward while recruiting
such as consistency parameter , many competency framework assessments are done as
well as appraisal framework is been followed at senior level.
 In every company, for every position have succession planning whether to hire a person
from outside or to promote internally.
 In some companies, formal training is been followed and in some only informal training
is been followed and in some both the training is important and they are followed
strictly. They see whether their skills are developed at substitute numbers, guide them
and have mentors to train them. HR plays a very important role in succession planning
as they have to pay attention , reviews has to be given on whatever happens regularly
and keep them together, acquisition are to be made etc. Some companies hire a person
from outside and in some do not. They train internally and assignments are given while
training.
 All the companies follow different training practice, some companies follow managerial
programs. In some companies team management is done, in some individual
management is done. In team management program team work is done. Delegation is
done.
 Executive business strategies help in succession planning. Like some companies have
HR counsel, all the members of HR counsel sits and have discussion on future plans,
work on road map current status future hiring plans they work on even HRM business.
 In some companies ‘360 degree feedback’ is followed and in some not. Some companies
follow peer evaluation where evaluation of performance, or the quality of work of a
member of a peer group by the experts drawn from that group.
 Almost every company focuses on INNOVATION. Some companies are in touch with
every individual with whom they are working. Some companies follow CUT PACK
MODEL, to gain efficiency in their work. Competency planning is done very well.
Business goals are very clear. All companies are clear with the plans. They have their
plans for 6-7 months or have future plans for 2-3 years.
Analysis & findings:
At one of the leading company in bio fuels we visited, the HR Manager agreed on the
fact that the success there company is experiencing in all these times is a result of Effective
Succession Planning Practices that they have. Although the company don’t go after 360
Degree evaluation, it has developed their own model of evaluation and competency mapping.
This is essentially based on the practice of peer evaluation. Wherein, the company evaluates
the efficiency of its employees by evaluation of performance, or the quality of work of a
member of a peer group by the experts drawn from that group.
All the companies follow different training practice, some companies follow managerial
programs. In some companies team management is done, in some individual management is
done. In team management program team work is done. Delegation is done.
In some companies, formal training is been followed and in some only informal training
is been followed and in some both the training is important and they are followed strictly.
Different processes being carried out to evaluate the performances in different
companies are:
INCON - XI 2016 72
 Quality: The quality of work can be measured by several means like the percentage of
work output etc.
 Timeliness: Working speed is another performance indicator.
 Absenteeism: An employee is obviously not performing when he or she is not at work.
 Creativity: It is one of the important parameter considered at higher level position.
 Assessment Centre: The employee is appraised by professional assessors who may
evaluate simulated or actual work activities.
 360-Degree or “Full-Circle” Appraisal: The employee’s performance is appraised by
everyone with whom he or she interacts, including managers, peers, customers and
members of other departments.
 Through competency mapping one can identify strengths and weaknesses. It enables the
person to better understand him or herself and to point out where career development
efforts need to be directed. This is important in Succession Planning because it helps in
assessment during recruitment, assessment during development stage, during promotion,
organizational development analysis. In almost all companies assessment centers for
competency mapping are there since it helps in evaluating the policies, strategies and
procedures of the institute, and the effectiveness of working of different councils and
committees and consultative groups responsible for micro-management within the
institute.
Identification of skills among employees and developing them are:
 Firstly to see where your employees stand, how well they perform. Understand the area
where they will learn quickly.
 Investing training and development activities like seminars, conferences etc.
 Go through various activities where one can acknowledge their strengths and identify
weakness.
 Recognize and reward the employees.
 Ask them to create an action plan based on their weaknesses.
 Provide strong workforce in order to provide right type of environment to keep top
talent.
 In order to train the employees both formal and informal training is given. Technical
training is technical training and formal training no substitute. In informal side there is
mentor attach to them, their guides, and their coaches whoever. Here, HR plays a very
important role who will keep them together, reviews are taken regularly, feedback
sessions are taken regularly, and positions are rightly matched, challenging assignments
to them so that it will help them to grow.
 Evaluation is an important tool for improving management. Evaluation of techniques is
done by the evaluators, who may be individuals or groups, and who design and conduct
the assessment exercise that generates evaluation information, which then becomes a
valuable experience-based input in future planning, establishing of priorities and
resource allocation. There also assessment centres at various level and senior levels and
above where they get good idea about their competency that people have in them and
individual plans.
 Job related simulations are also carried out in companies since all individuals are given
the same opportunities, and all are evaluated on the same basis and it also includes some
INCON - XI 2016 73
type of standardized rating scale to score responses. Types of work simulations include
helping a customer, coaching an employee, making a sales call, negotiating with a peer,
solving a problem, or presenting information to management. During a typical
assessment experience, candidates interact with role players/assessors. Trained assessors
observe and take notes to evaluate performance in several job-related competency areas,
e.g., leading, influencing, advocating, presenting, solving problems, communicating, etc.
 Statistics practitioners are also there in companies who help to strengthen the work of
others through appropriate peer review. They assess methods, not individuals. Use
professional qualifications and the contributions of the individual as an important basis
for decisions regarding statistical practitioners' hiring, firing, promotion, work
assignments, publications and presentations
 Psychometric tests are also followed in order to aid the employee selection process, to
help them get the ‘right’ person. Since, organisations want to know more about job
seekers these days, wanting to discover their core competencies through the selection
process. It includes aptitude test and personality test.
Conclusion:
Based on our research carried out at various companies in and around Pune and also the
contemporary examples being experienced by the corporate world, we would like to
emphasize on the fact that; though some of the companies are much focussed on the aspect of
succession planning, it is not a common practice at large. For many organizations the practice
of leadership development is not of the grave concern. The organizations often start to think
upon the change of guard as time appears to come close to take a decision. Almost, 12 out of
the 20 companies we visited seemed to be reluctant towards the practice of succession
planning, especially when the decision on the highest leadership is considered.
It was apparent at these companies that the decision is supposedly taken by the highest
authority. But, the practice of leadership development at managerial and other levels is quite
visual in all the companies. Where companies tend to follow various practices as discussed
above.
The companies which follow a robust system to facilitate the process of succession
planning are much more synchronized with the training needs & requirements at every level,
resulting into optimum performance and sustainability.
Annexure (Questionnaire):
1. Does your company follow succession planning? If not list key reasons why your
organization does not have succession plans for key senior level positions?
2. How are decisions made about successors for positions in your company?
a. We informally prepare successors.
b. When a position opens up, we rely on expediency to identify someone to fill it.
c. We have a documented, robust system to prepare successors across the company.
d. We typically wait until positions are vacated to begin thinking about planning for
succession, that we engage in an extensive process to fill the vacancy.
3. Does your organization have a succession plan for every key senior level position
(Branch Chief and higher)?
a) Yes b)No
INCON - XI 2016 74
4. Does your organization’s succession plans require a formal/informal training and/or
mentorship of individuals identified to fill key senior level positions?
a) Yes b)No
5. What steps are being taken to test and develop the top internal candidates?
6. How do you ensure the talent and leadership strength required to
 grow the business?
 execute business strategies?
 deal with retirement/attrition?
7. How do you ensure common definitions and standards regarding leadership/ career
potential across the organization?
8. How do you ensure that every new management hire adds to your leadership pipeline?
9. What methodology is used to assess that the required formal/informal training and/or
mentorship has met the need?
10. Does your organization provide a refresher formal/informal training and/or mentorship to
individuals after they have been selected to fill key senior level positions?
11. How is a refresher formal/informal training and/or mentorship need determined, fulfilled
and tracked?
12. List methods used by your organization to prepare newly hired individuals (from within
or outside of your organization) for key senior level positions, if it does not have or
follow formal succession plans.
13. Overall, how effective is succession planning in your organization?
a. Very successful
b. Successful
c. Not successful at all.
14. How do you identify your growing leaders?
a. We tend to examine candidates who raise their hands for leadership roles, as this
demonstrates interest in leadership.
b. Look at their past performance.
c. We never seem to have right people for leadership roles and find it difficult to identify
growing leaders.
d. We have a rating system that identifies both performance and future potential.
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Individual Enterprise (and entrepreneurial spirit), Asia-Pacific Development Journal,
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 Lall, Sanjaya, 2001: Competitiveness, Technology and Skills, Northampton, MA,
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Industrial and Commercial Training, 41, 181-186.

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To Study the Industrial Relation in the Context of Changing Business

Scenario in Automobile Industries in and around Pune Region for Large
Scale Auto Manufacturing and Ancillary Industries
Prof. Bhushan Pednekar
ASM’s IBMR, Chinchwad, Pune, India
HR ( Human Resource )
bhushan_pednekar@asmedu.org
bhushan_pednekar@yahoo.com
ABSTRACT:
Industrial relation is the relationship between employer and employee. In
automobile industry there are growth and downfall over a period of time. Industry is
growing then expectations from employees are raise. At the same time the employer is
looking for give less and retains more for future. In this highly competitive environment
employer and employee should look for long term goal rather than short term benefits.
Employers as well employee approach are changing as per the business scenario. The
moment employer is not passing the benefits to employee then they take it otherwise. It
creates a situation like strike. This hampers the organization and larger extent to
employees as well. On the contrary situation of lockout also arises. This paper study
that if market condition is favourable to automobile sector then does it impact on
industrial relation.
Keywords : Industrial Relation, Business environment, Automobile sector
Introduction
Industrial relation is key factor for the success of organization. Expectations are from
both the side employees and employer. Employee’s mindset is that we are giving our 100%
contribution as per the requirement of organization. At the same time they expect that the
employer will also provide them more than the statutory compliances. They want the long
term association with the organization. Over a period of time expectation from both ends will
likely to be changes. Today’s employees are more knowledgeable with respect to their rights
and also he knows when to demand from employer. In the normal environment where
production is constant and there is fix demand for the company’s product. Then employees are
taking it on a positive note. The problem arises when they can respond to the situation where
demand is increasing and companies profitability also growing. They can take it on a negative
way, where they will expect more from employer either the one time monetary benefits or
long term commitment. Now here the employer view may likely to differ. They want to retain
this profit for long term goal or for any adverse market condition. Now here the difference of
opinion and expectations are arises. If either of them responds to this situation on negative
way the problems of industrial relation will be more in number.
Purpose
The purpose of the study is that the industrial relation depends on the market
environment or growth of an industry. Both the parties are keen on this i.e. employer and
employee. Does it a mind set of an employee ? Who think differently in a growth scenario.
At the same time what is the strategy of an employer to deal with such type of situation.
INCON - XI 2016 77
Need of Study
Industrial relations have been influence by the condition within the industry as well as
business environment. The today’s new generation employees are well educated and also
aware about their own rights and regulations. They are ready to work for long hours if
required but at the same time they want the share in company’s profitability or other benefits
monetary / non monetary. Union attitude towards employee is sharing and caring. Union has
to be adhering with its attitude by keeping the interest of employee and employer. They should
not deviate due to an external factor. They should maintain the highest level of mutual
understanding and create goodwill. The management takes a step ahead to maintain peace in
the industry. Management is responsible to maintain “peace at all level and at any price”.
Their strategies, approach and attitude towards problem is solution oriented. The cordial and
smooth relationship between employer and employee should ultimately contribute to achieve
the purpose of industry.
Objectives
 To identify the reasons for different approach of employees in growth scenario
 To understand the employer strategies in growth scenario
In this study, to determine the impact of industrial growth scenario on industrial relation
based on the study conducted on large scale automobile and auto ancillary industries in Pune
region. A structure questionnaire with five scale Likert type scale has been used to collect
primary data. Random sample method used to select the sample. The different levels of
employees are taken into consideration like Managerial level, Officer level, Permanent
workers, Temporary workers, Outsource workers. I have taken three manufacturing large scale
companies and three large scale auto ancillary industries as a sample for the study.
Hypothesis
Ho : Companies are growing in good market condition then employees demand will increase
H1 : Employees expectations are similar in growth as well as adverse /
regular conditions.
Table 1 : Details of Strength
Sr. No Designation of Employees Total Strength
1 Managerial Level 13
2 Officer Level 15
3 Permanent Workers 21
4 Temporary Workers 22
5 Outsource Workers 20
Total 91
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Table 2 : Compiled Data – The Opinion of Sample Population
1 – No Impact on Industrial Relation , 5 – High Impact on Industrial Relation
Sr Particulars 1 2 3 4 5 Avg
No
1 Trade union really represent 7 20 43 10 11 2.98
Problems
2 Trade union participation of 12 14 11 32 22 3.42
all types of workers
3 Freedom of association is 12 9 42 12 16 3.12
allowed in industry
4 Strike is the best way to 4 12 19 27 32 3.88
fulfilled the demand
5 Lock out is the best way to 33 19 17 11 11 2.43
manage the situation
6 Effective dispute resolution 31 24 17 12 7 2.34
process
7 Workers participation in 11 14 38 16 12 3.04
management
8 Effective communication 6 9 19 23 34 3.77
strategies
9 Pay structure is transparent 13 14 11 23 29 3.42
10 Equal pay for equal work 4 6 5 33 43 4.15

11 Current wages does not 8 9 18 22 34 3.71
affect on IR
12 Company taking efforts for 23 26 30 4 6 2.32
overall development of
employees
13 IR depends on current 7 8 14 29 33 3.80
demand in labour market
14 Employees turnover 2 13 17 31 28 3.77
depends on companies
current performance
15 Management consider 13 21 23 18 16 3.03
employees are important
16 Union approach - affect IR 13 12 16 19 31 3.47
17 Industrial democracy 2 19 15 24 31 3.69
should be promoted
18 IR depends on growth of 3 6 23 26 33 3.88

industry
INCON - XI 2016 79
Sr Particulars 1 2 3 4 5 Avg
No
19 Company is profitable then 1 3 13 30 44 4.24
demands of trade union will
increase
20 Company is in loss then 7 19 34 23 8 3.07
demand of trade union will
also decrease
21 Survival of industry tackle 13 15 14 25 24 3.35
through IR
22 Companies performance 13 14 39 13 11 2.91
depends on IR
23 Company has a predefined 26 22 14 12 15 2.58
policy in the growth
scenario
24 Employees approach to stay 3 10 20 31 27 3.76
longer with the company
25 Regularly updated with 28 21 16 12 14 2.59
current market scenario
26 Regularly updated with 26 23 16 15 11 2.58
company performance
27 Company regularly updated 38 27 9 9 6 2.03
the employees about long
term goal
28 Company inform to 14 13 37 18 9 2.95
employee about their
financial position to
employee
29 Company has a policies to 41 22 15 8 5 2.05
deal with growth and
adverse conditions
30 IR changes as per the 11 6 19 21 34 3.67
market condition
Interpretation & Findings

Role of Trade union is important for addressing and solving the employees problems
related with work. Employees are heavily depends on trade union with respect to the problems
face by them. Trade union is the representative of employees to deal with employer. Different
approaches adopted by the trade union related with work like they take initiative to solve
problems, avoid facing such problems, bias to employer or employees etc. In the study it has
been observed that the trade union neither represent the problems well nor they solve it. In the
employees view trade union is neutral for dealing with problematic situation.
INCON - XI 2016 80
Trade unions make sure that they will participate all types of work related activity with
employees. In this study employees view is more positive towards the trade union approach.
Most of the employees showing favorable response towards trade union for actively
participating in all types of work. It gives the feeling that they treat all of them equally.
Every organization gives the freedom to employees for association in industry. They can
associate with any trade union as per their wish and there is no interruption from employer
side. Study shows that the employees are happy that they can use this liberty.
Industries do not want to face the situation of strike, where employees will go against the
management for their demands. This situation is neither good for employees as well as
employer. Sometime when both the parties are not agreeing with each other demand then
“loose loose” situation arises. Neither of the party will gain anything out of it. Study shows
that the employees are favoring the weapon of strike to get things done from management.
Lockout is the weapon in the hand of employer to tackle with employee. This situation
arises when both the parties are not agreeing with each other. Management takes a call to close
down the industry due to the worker problems. Study shows that the lockout is not the option
which management can choose in any tough situation.
In industry, where disputes are likely to be there. This is the only one way to handle the
dispute. It shows that if management is ready with dispute resolution process effectively then
they can handle the dispute in much better way. Study shows that the companies are lacking
the effective dispute resolution process.
Workers participation in management is key to bridge the gap between both the parties.
It encourages the workers to do better. They will feel part of the organization. Study shows
that it is not been adopted by most of the companies in right way. Still it has a scope for
further development.
Every organization needs to follow the two way communication strategy. It brings the
transparency & clear understanding from both parties. Both the parties should understand
each other in better way. Study shows that most of the organizations are neglecting this aspect.
Pay structure is an important for everyone. It gives a clear indication that where you are
& how much scope to grow further. Study shows that the companies are transparent in pay
structure.
Equal pay for equal work is the strategy should be used by companies like “Same Work
Same Pay”. Pay should be based on the type of work, which depends on the individual skills.
Study shows that companies are following the equal pay for equal work strategy.
The current wages of an employee’s depends on the type of job employees are
performing. If it will not review over a period of time then employees are demotivated. Study
shows that the current wages does not affect on industrial relations.
The prime responsibility of employer to develops the employees. They should come out
with a plan to do so. Study shows that the management is not keen for the development of
employees. They are not taking positive steps for development of employees.
Industrial relation depends on demand in labour market. More the demand for
employees more will be the expectations and vice versa. Study shows that demand in labour
does affect to an attitude of employees and subsequently it affect on industrial relations.
Employee’s turnover depends on the company’s current performance. If organization
doing well then employees are attracted for employment, but the moment it suffering losses
INCON - XI 2016 81
then the mindset of an employees will be deviated. It directly affect on employees turnover.
Every business organization followed the cycle of up & down with respect to growth. Study
shows that employee’s turnover will increase if company suffer losses and vice versa.
Management considers that employees are vital factor in the organization. Study shows
that management is taking effort in some organization but some organization they are
neglected.
Union strategies have an impact on industrial relations. Sometime they are on dominant
side where on the other case they are under the influence of management. Study shows that
the approach of union does have an impact on industrial relations.
In industry every individual should have right to express his view related with work,
policies, strategies etc. That freedom should be there to encourage the employees to come out
from the shell. Study shows that the companies are providing the industrial democracy at all
level.
Industrial relation depends on growth of industry. Industrial relation is all about the
mindset difference in different scenario. Study shows that industrial relation depends on the
growth of an industry.
Companies are profitable then demands of trade union will increase. They can see the
profitability increases which ultimately force them to think differently. They expect the share
of the profit in monetary or non monetary terms. Study shows that the company’s profitability
increase then definitely the demand of the trade union increases.
If company is in loss then demand of trade union will also decreases. Employee’s
mindset is change by understanding that company is in survival phase. They will not come out
with their demands. Study shows that the response from employees is neutral as they keep on
demanding in adverse environment.
Survival of industry tackles through industrial relation. In the problematic situation
where industry need the support from employees and employees will respond positively. Study
shows that in critical time the better industrial relation come out for rescue for company.
Company’s performance depends on industrial relation. On a larger extent better is the
industrial relation then peace in the industry which promotes the productivity and ultimately
the profit. Study shows that the neutral view on company’s performance depends on industrial
relations.
Company has a predefined policy in the growth scenario. Most of the time company do
not have any action plan that how to deal with employees in growth scenario. They are not
ready with any strategy. Study shows that most of the industries are not prepared to deal in
growth scenario.
Employees approach is to stay longer with the company. Every employee expect the
stability and growth, if it likely to be happen in current industry then they don’t bother to stay
longer. Study shows that employees approach is to stay longer with the company.
Whether employees are updated with current market scenario. Study shows that most of
the employees are not updated themselves about market scenario. Some of them even not
bother to stay away from such scenario.
Employees are regularly updated with company’s performance. Every employee is keen
to know how his industry is doing. This is utmost important area for his interest. Study shows
that they are regularly updated with company’s performance.
INCON - XI 2016 82
Companies are regularly updated the employees about long term goal. Study shows that
companies are not taking interest for employee’s career development.
Company inform to employees about their financial position to employees. Study shows
that company not taking any effort to represent their financial position to employees.
Company has policies to deal with growth and adverse condition. Study shows that
company has not come up with any strategy in such situation.
Industrial relation changes as per the market condition. It is all about the interest part of
both parties. Study shows that industrial relation does changes as per the market condition.
Conclusion
Indian economy is developing in a big way subsequently growth in automobile sectors
as well. The local players are competing with global player. Indian automobile industry stood
6th in the rank after china, USA, Japan, Brazil & Germany. Sector is growing rapidly despite
the stiff competition. The various factors like labour commitment, work culture, productivity,
competitiveness, knowledge labour, information availability are drastically affect on the
mindset of employees. There awareness makes them force to demand more is a growth
condition. Their expectations are logically right but at the same time employer view is
different in this situation. This different approach widening the gap between them, which
influence on labour management relationship. Market condition is favorable to industry then
they aim to maximize the profit. They want the profit to be utilized for future development.
Employees are claiming that they are one of the key contributors for the growth and
subsequently they demand more. This is the situation where industrial relation affects. There
is no such strategy available in situation like growth or loss. Both of them act as per situation
but they should keep the interest of industry as prime importance.
REFERENCES:
 hrcouncil.ca
 Industrial relation, trade union & labour legislation by P.R.N. Sinha,
 Indu Bala Sinha, Pearson Publication
 Employee relations management by P.N.Sinha, Neeraj Kumar, Pearson Publication
 Industrial relations by Arun Monappa, Tata McGraw Books
 Industrial Relations by C.S.Venkata Ratnam, Oxford University Press, 2006
 Industrial Relations in India by P.L.Rao PRK Raju, Excel Books, 2010

INCON - XI 2016 83
Good Income is The Initiating Factor for Good Outcome in

the Performance of Employees (Private School Staff)
Prof. Gazala Nadap
ASM’s IPS, Pimpri, Pune, India
Pimpri,Pune - 19
ABSTRACT:
The study sought to examine the effect of compensation on performance of school
teachers. Teachers have always portrayed lack of devotion in their work places. This is
evident in their instability in the teaching profession and low morale in performing their
teaching tasks and hence unsatisfactory performance. Poor remuneration has often been
given as a cause of low morale among teachers thus leading to numerous strikes. The
problem of inadequate compensation makes the teachers dissatisfied, thus leaving the
profession to other well or better paying jobs. The study was carried out among school
teachers. The study adopted descriptive survey design. Simple random sampling was
used to select the teachers and purposive sampling to select the head teachers. The
sample population comprising of 100 teachers , was selected for the study. Based on the
findings the study concluded that fair compensation has an effect on school teachers‟
performance this is because the compensation policy in place demoralizes the teachers,
does not enhance task performance and negatively affects the productivity of the
teachers in the schools.
Keywords: Compensation, Extrinsic rewards; Intrinsic rewards; job performance
Purpose :
The aim of this study is to investigate how to employee performance impact on reward
in private school. The study also aims to show how to employee improve the performance has
in reward system.
Design/methodology/approach:
Questionnaire is used as instrument and 100 questionnaires were used to check the
respondent’s opinion
Findings:
descriptive analysis, correlation and multiple regression tests were applied for data
analysis.
Conclusion:
Study concludes that there is positive relationship between rewards (extrinsic and
intrinsic) and employee’s job performance. Most of the organizations implement rewards
system to increase the job performance and job satisfaction.
Originality/value:
By reviewing the different finding that the reward and employee performance. The
contribution of this paper is to look at how to finding the effective solution of employee
performance will be in reward system inter-organizational and school.
INCON - XI 2016 84
Study of paper:
The study of this paper is explanatory qualitative study of research.
1. Introduction
A reward system is important for the employee performance. As employee performance
will be more effective to high reward system. That how to be high performance is base high
reward vice versa. Job performance is also part of human resources management.
Performance is an important for the organization succession and achieving the goals. There is
so much changing occurring in the school education in the world an every school has much
relay on employee’s good performance. Rewards are considered an important tool to check the
employee’s performance in every organization. Management use rewards for employees
motivations. So we can say that effective reward system attract new employees for
organization and motivate existing employees to perform high levels. Employee’s good work
is necessary to achieve the specific goals. Employees give their good efforts for achieving
goals and good effort depends on rewards. In other words we can say that good rewards are
most important way to engage the employees with their work and with their organization.
Schuler and Jackson, the connection and relationship between rewards, motivation and
job satisfaction of employees have much significance to success of both public and private
sectors. Employees want to get both types of rewards means financial and nonfinancial
rewards. Some employees of school prefer the financial rewards and other are nonfinancial
rewards that opportunity to take an important tasks and projects, attention and encouragement
of leadership. In this way employees feel that they are being valued by the employers and also
feel that the company is seriously involved in employee’s career and development. So these
rewards contribute to improve the satisfaction level of workers. Different employees have
different needs about rewards. Some employees consider cash is sufficient to fulfill their needs
and some others wants to material incentives like car, house, and some prefer holidays and
some prefer nonmaterial incentives. Public sector employees much prefer extrinsic factors
then intrinsic factors, such as pay, as more important than private sector employees.
These two basic rewards (financial and nonfinancial) can be utilized positively to
increase the performance of employees. Financial reward mostly consist on pay for
performance such as job promotion, bonus, commission, gifts etc. and nonfinancial rewards
mostly consist on social recognition, appreciation, work kind condition, meaning full work
responsibility etc.
According to Neckermann and Kosfeld, nonfinancial rewards also called nonmaterial
awards.
 The impact of intrinsic and extrinsic rewards on employee’s performance.
 Rewards increase your overall satisfaction on the job.
Rewards systems are often implemented within organizations as a key management tool
that can contribute to a firm’s effectiveness by influencing individual behavior and motivating
employees at work.
Organizations tend to focus on financial rewards, and non-financial rewards have
become increasingly being overlooked. Every employee has his or her own set of needs and
motivators. Therefore, school principal have to carefully select the right rewards that respond
to individual needs. Some are motivated by money, while others motivated by recognition,
increment of pay. Career advancement or personal growth; which is not direct or instant
INCON - XI 2016 85
material benefits. Thus it is wrong to assume that everyone shares the same motivator and
needs. Many researchers have found that employees’ job satisfaction is affected by both
financial and nonfinancial rewards. An ineffective reward management will affect employees’
satisfaction and de-motivate them, hence affecting their performance outcome.
Rewards is one of the important elements to motivate employees for contributing their
best effort to generate innovation ideas that lead to better business functionality and further
improvise company performance both financial and non-financially.
According to Dewhurst, there are other means to reward employees that do not just
focus on financial compensation. Some of these include the praised that employees are able to
acquire from their managers, the opportunity to take on important projects or tasks, and even
leadership attention. Much research on leader power have found that supervisor reward power
would be positively associated with employee task performance, productivity, satisfaction,
turnover, and organizational citizenship behaviors. Employee will give their maximum when
they have a feeling or trust that their efforts will be rewarded by the management. There are
many factors that affect employee performance like working conditions, worker and employer
relationship, training and development opportunities, job security, and company’s overall
policies and procedures for rewarding employees, etc. Among all those factors which affect
employee performance, motivation that comes with rewards is of utmost importance.
Motivation is an accumulation of different processes which influence and direct our
behavior to achieve some specific goal. Rewards can be extrinsic or intrinsic, extrinsic rewards
are tangible rewards and these rewards are external to the job or task performed by the
employee. External rewards can be in terms of salary/pay, incentives, bonuses, promotions,
job security, etc. Intrinsic rewards are intangible rewards or psychological rewards like
appreciation, meeting the new challenges, positive and caring attitude from employer, and job
rotation after attaining the goal. According to Luthans, there are two basic types of rewards,
financial and non-financial and both can be utilized positively to enhance performance
behaviors of employees. Financial rewards means pay-for-performance such as performance
bonus, job promotion, commission, tips, gratuities and gifts etc. Non financial rewards are non
monetary/non cash and it is a social recognition such as acknowledgement, certificate, and
genuine appreciation etc. The non financial rewards is also called materials award. Desired
performance can only be achieved efficiently and effectively, if employee gets a sense of
mutual gain of organization as well as of himself, with the attainment of that defined target or
goal. An organization must carefully set the rewards system to evaluate the employee’s
performance at all levels and them rewarding them whether visible pay for performance of
invisible satisfaction. The concept of performance management has given a rewards system
which contains; needs and goals alignment between organization and employees, rewarding
employee both extrinsically and intrinsically. The system also suggests where training and
development is needed by the employee in order to complete the defined goals. This training
or development need assessment of employee gives them an intrinsic motivation.
2. Litrature Review
Reward is a broad construct that has been said to represent anything that an employee
may value that an employer is willing to offer in exchange for his or her contributions. The
lack of rewards will create an unpleasant environment, thus diminishing employees’ work
efforts and may cause them to with draw from their jobs. For these reasons, rewards are
INCON - XI 2016 86
increasingly important. The main objectives of rewards are to attract and retain employees, to
motivate employees to achieve high levels of performance, and to elicit and reinforce desired
behavior of the employees. Organizations often use financial rewards to prevent employee
dissatisfaction and to motivate employees, although it may not be the best motivator for the
long term.
Deeprose had stated that “while the presence of money may not be a very good
motivator, the absence of it is a strong de-motivator”. In addition, financial rewards are
significant not only in terms of their instrument value as a medium of exchange, but also a
highly tangible means of recognizing an individual’s worth, improving self-esteem, and
symbolizing status and achievement(Armstrong,). Therefore, organizations can best utilize
financial rewards in supporting organizational human resource strategy. Non-financial rewards
are tangible rewards provided and controlled by a firm; which do not necessarily benefit
employees in monetary sense. Nowadays, individuals require beyond monetary rewards for
their effort. This means that employees seek for other return in exchange for their contribution
which is of value and meaningful to them, rather than being given just money . Given the
labor-intensive nature of the hospitality industry and the rising pressure to control costs,
nonfinancial rewards are being used increasingly to motivate employee performance and to
increase employee satisfaction.
Rewards have two broad types; extrinsic and intrinsic rewards are also called financial
and nonfinancial rewards and these rewards further divided in so many sub categories.
Extrinsic rewards relates to financial rewards or cash related like formal recognition, fringe
benefits, incentive type payments, pay, promotion and intrinsic relates to nonfinancial or non-
cash rewards like achievement, accomplishment feelings, recognition, job satisfaction and
growth.
Today world balance between employees commitment and performance for the
organization is much necessary and rewards are most important tool for employees
commitment, job satisfaction, and motivation and employees good performance. Kalleberg,
explained rewards consist on benefits that employees receive in exchange of their work during
the job. According to Wang, in so many organization rewards plays so many roles in
sustaining and creating commitment among employees for good performance and that better
performance leads to job satisfaction.
When employees achieved their desire results from job so that of desired achievement is
called job satisfaction.
Ali & Ahmad, investigated that there is positive relationship between “recognition and
reward”, “performance”. They stated that if reward and recognition are given to employee then
there is a huge change in their employee performance. The study conducted to check the
relationship between rewards and employee‟s performance in schools. They use these
variables employees‟ performance, job description, extrinsic reward, intrinsic reward, gender
discrimination, and environment; recondition techniques, and performance bonus. They used
cement companies, questionnaire was used for data collection. Total two hundred
questionnaires were randomly distributed among the employees of private schools in. The
results revealed that there is a direct relation between reward system nd employee‟s
performance.
INCON - XI 2016 87
According to Mishra and Dixit, financial and non financial rewards and benefits are
highly correlated with employee’s performance in an education rewards system. Because of
positive relationship of between rewards and performance also increase the job satisfaction of
orkers. Job satisfaction leads to success and feelings of achievement during the job. Also
linked increase productivity, increase worker’s efforts on job and leads to happiness
enthusiasm, feeling of fulfillment. Rewards promote happiness and job satisfaction
investigated in his research study by Boehm & Lyubomirsky. Intrinsic and extrinsic rewards
are determinants work satisfaction Clifford.
According to Andrew & Kent, explained in his research all the employees revolve
around the rewards and recognition so the both aspects have much importance for employees.
Good reward system help to retain high performers in the firm so rewards must be fulfill the
high performer’s feelings explained that pay relates to productivity and reward system relate
to size of the firm. Monetary and nonmonetary rewards motivate the workers of any
organization and these rewards also resulted in higher growth and productivity. Organizations
in today’s environment seek to determine the reasonable balance between employee
commitment and performance of the organization. The reward and recognition programs serve
as the most contingent factor in keeping employees’ self esteem high and passionate.
Oosthuizen stated that it is among the function of managers to motivate the employees
successfully and influence their behavior to achieve greater organizational efficiency. La Mott
is of the view that performance at job is the result of ability and motivation. Ability formulated
through education, equipment, training, experience, ease in task and two types of capacities
i.e. mental and physical. The performance evaluation and rewards are the factors that proved
to be the bonding agents of the performance evaluation programs.
According to Wilson, the process of performance management is one among the key
elements of total reward system. Entwistle is of the view that if an employee performs
successfully, it leads to organizational rewards and as a result motivational factor of
employees lies in their performance. Majority of the organizations require their employees to
work according to the rules and regulations, as well as, job requirements that comply with full
standards. The investigations that have been conducted to find the relationship between
compensation and individuals were focused to increase the performance of employees. The
highly motivated employees serve as the competitive advantage for any company because
their performance leads an organization to well accomplishment of its goals. Among financial,
economical and human resources, human resources are more vital that can provide a company
competitive edge as compared to others.
According to Andrew, commitment of all employees is based on rewards and
recognition. Lawler (2003) argued that prosperity and survival of the organizations is
determined through the human resources how they are treated. Most of organizations have
gained the immense progress by fully complying with their business strategy through a well
balanced reward and recognition programs for employee. Deeprose argued that the motivation
of employees and their productivity can be enhanced through providing them effective
recognition which ultimately results in improved performance of organizations. The entire
success of an organization is based on how an organization keeps its employees motivated and
in what way they evaluate the performance of employees for job compensation. Managing the
performance of employees forms an integral part of any organizational strategy and how they
deal with their human capital.
INCON - XI 2016 88
Today where every organization has to meet its obligations; the performance of
employees has a very crucial impact on overall organizational achievement. In a demotivated
environment, low or courage less employees can not practice their skills, abilities, innovation
and full commitment to the extent an organization needs. Freedman is of the view that when
effective rewards and recognition are implemented within an organization, favorable working
environment is produced which motivates employees to excel in their performance.
Employees take recognition as their feelings of value and appreciation and as a result it boosts
up morale of employee which ultimately increases productivity of organizations.
Csikszentmihalyi & Flynn argued that rewards and recognition programs keep high spirits
among employees, boosts up their morale and create a linkage between performance and
reward of the employees. The basic purpose of recognition and reward program is to define a
system to pay and communicate it to the employees so that they can link their reward to their
performance. Rewards play a vital role in determining the significant performance in job and it
is positively associated with the process of motivation.
Lawler, argued that there are two factors which determine how much a reward is
attractive, first is the amount of reward which is given and the second is the weight age an
individual gives to a certain reward. Deeprose is of the view that “Good managers recognize
people by doing things that acknowledge their accomplishments and they reward people by
giving them something tangible.” Fair chances of promotion according to employee’s ability
and skills make employee more loyal to their work and become a source of pertinent
workability for the employee. Bull posits a view that when employees experience success in
mentally challenging occupations Rewards and recognition are the key parameters of today’s
motivation programs according to most of the organizations as these bind the success factor
with the employees’ performance. Robbins asserts that promotions create the opportunity for
personal growth, increased levels of responsibility and an increase on social standing.
Similarly, the recognition which is a central point towards employee motivation adores an
employee through appreciation and assign as status at individual level in addition to being an
employee of the organization. Barton argued that the factor in Rewards and recognition at their
job. Rewards enhance the level of productivity and performance at job whether it’s a first time
performance or repeated activity at the job in a progressive way.
Eastman consistently found that intrinsic motivation is conducive to producing creative
work, while extrinsic motivation is unfavorable to producing creative work. Gagne suggested
a new model of knowledge-sharing motivation which provides suggestion for designing five
important human resource management (HRM) practices including staffing, job design,
performance and compensation systems, managerial styles and training.
Ali and Ahmed confirmed that there is a statistically significant relationship between
reward and recognition respectively, also motivation and satisfaction. The study revealed that
if rewards or recognition offered to
3. Development of Hypothesis
The following hypothesis can be formulated on the basis of literature review.
Ho: There will be no association between extrinsic rewards and employee’s job performance.
H1: There will be direct association between extrinsic rewards and employee’s job
performance.
Ho: There will be no association between intrinsic rewards and employee’s job performance.
INCON - XI 2016 89
H2: There will be direct association between intrinsic rewards and employee’s job
performance.
4. Theoretical Model (Conceptual Framework)
A group of related ideas that provides guidance to a research project or business
endeavor. The appropriateness of a theoretical framework that a marketing department is using
to promote its corporate and product image to the consuming public can be an important
determinant of its ultimate success. A theoretical framework as identified the relationship
between different variables as it positive or negative, no relationship.
Identification of variables: An this research paper I identified different types of
dependent and dependent variables This study use rewards as an independent variable and
these rewards consist of two main types‟ extrinsic rewards and intrinsic reward. So extrinsic
rewards includes bonus, lunch, work tools, car benefit, housing, private office room, flexible
office hours, free medical, relaxation room, free tickets and intrinsic rewards includes well
aware, right, opportunity, recognition, my development, importance, opinions, grow, quality
work, appreciated. Study involves employee’s job performance and as dependent variables.
Schematic Diagram;
Fig. 1: Conceptual research framework

This model shows the impact of reward extrinsic and intrinsic rewards on employee’s
job performance.
5. Conclusion
The reward is more important of any nature of business, organization, institution,
schools, very beneficial for the employee’s job performance . It is natural process that human
performance is based on motivation and motivation can be concerned in reward on this
increased with rewards. As better performance is compared to absent of reward. This study of
research paper prove performance of employee is positive impact in school system.
QUESTIONNAIR
Personal information
1. Respondent No _________________________
2. Gender of the respondent
a. Male
b. Female
3. Age of the respondent
a. 18 – 23
INCON - XI 2016 90
b. 24-29
c. 30-35
d. 36-41
e. 42-47
f. 48 and above 48
4. Field of the respondent ----------------------------
5. Educational career of the respondent
a. BS(4 year)
b. MA /MSc
c. M.phil
d. PHD
e. Any other diploma
6. Family of the respondent
a. Joint family
b. Nuclear family
c. Extend family
7. Marital status of the respondent
a. Single
b. Married
8. Do you know about Reward?
a. Yes
b. No
9. If yes, then what does it mean?
a. Motivation of employee
b. No motivation of employee.
c. No impacts
d. Any other
10. Does the reward bring positive impact of employee performance?
International Letters of Social and Humanistic Sciences Vol. 52 101
a. Yes
b. No
11. If yes, clarify for what aspect..
a. keeps more employee
b. Lower turnover
c. To achieving the target goals
d. Any other
12. Which reward is more important for employee to motivate.
a. Financial reward
b. Non financial reward
c. any other
13. Pay decisions are linked to performance achievements?
a. Yes
INCON - XI 2016 91
b. No
14. The reward system facilitates implementation of strategy by motivating desired levels of
performance.
a. Yes
b. No
15. The reward system facilitates the implementation of strategy by attracting and retaining the
right kind of people.
a. Agree
b. Strongly agree
c. Disagree
d. Strongly Dis-agree
16. Positive and negative financial and non-financial consequences of performance (e.g.
salary adjustments, recognition) are utilized effectively.
a. Yes
b. No
17. Performance goals are mutually developed and have specific time frames.
a. Agree
b. Strongly agree
c. Disagree
d. Strongly Dis-agree
REFERENCES:
[1] Farooqui, S, & Nagendra, A,“The Impact of Person organization Fit on Job Satisfaction
and Performance of the Employees,” Procedia Economics and Finance, 11, (2014) 122 –
129.
[2] Kabak, E, K, Gocer, K, S, A, Kucuksoylemez, S, Tuncer, G, (2014) “strategies for
employee job satisfaction: a case of service sector,” Procedia - Social and Behavioral
Sciences 150 (2014) 1167 – 1176.
[3] Oshagbemi, T, (1997) “job satisfaction and dissatisfaction in higher education”,
Education + Training, Volume, (39) 9, 354–359.
[4] Grooy, W, brink, D, V, M, H, (1999), “job satisfaction of older worker,” International
Journal of Manpower, Emerald, (20), 6, 343-360.
[5] Waal, D,A,A, (2007), “the characteristics of a high performance organization, Emerald
Group Publishing Limited, (8),3, 179-185.
[6] Armstrong, Reilly, P, & Brown D, (2011),”increasing the effectiveness of reward
management,” Employee Relations, Emerald Group, (33), 2, 106-120.
[7] Bourne,M, kennerley,M, & santos,F,M, (2005), “ managing through measures a study of
impact on performance,” Journal of Manufacturing Technology Management, (16) 4,
373- 395.
[8] Helgesen, O, nest, E, & volsund, T,(2008),” Marketing perceptions and business
performance implication for marketing education, Marketing Intelligence & Plannin,
(27) 1, 25-47.

INCON - XI 2016 92
“Study of the Need of 'Emotional Intelligence' in People to Lead a Stress-

Free and Successful Life”
Prof. Eapen Thomas Mr. Shamin Eapen
Audyogik Shikshan Mandal’s ASM’S IBMR, MBA-I
IBMR
ABSTRACT:
Emotional intelligence (EI) is a new area of study under Organization Behaviour.
It is necessary to teach people what is EI and how to acquire EI. This study will help
people in their decision processes, for stress-free and successful life. To be successful,
one has to be smart. In addition to smartness, this study stresses that one has to
'emotionally intelligent'.
Emotional Intelligence is the ability to monitor one's own and others' feelings and
emotions and guide one's thinking and actions. In short, if one person is in a position to
connect oneself with others(empathy), with whom one is inter-acting in day to day life,
one can lead a smooth and successful life. Emotional Quotient (EQ) is the measure of
EI, just as Intelligent Quotient (IQ) is the measure of cognitive intelligence.
The objective of the study is to study the extent of awareness among respondents
about Emotional Intelligence (EI), to study how far the EI helps to carry out day to day
activities stress-free life and to examine the role of EI in leading a successful life.
A sample of 76 respondents have been identified for the study, both from academia
and corporate. Proper analysis and interpretations have been made; and findings have
been derived based on interpretation.
The amazing part of the study in EI is the huge amount of support we received
from most of the respondents. In corporate one participant suggested conducting a one
day workshop on EI for the benefits of all employees. They feel that this study is very
much useful not only for working class but also required in order to lead a stress-free
and happy family life.
This study not only highlight the importance of Emotional Intelligence, but also
help future researchers to undertake more number of researches on EI for people to lead
a stress-free and successful life.
We have received a number of suggestions from respondents, who were mostly
post-graduates and graduates, supporting the study of EI for benefits of human beings
globally.
Keywords: Emotional Intelligence, Intelligent Quotient, Organisational Behaviour,
stress-free, cognitive intelligence, empathy
1. Introduction
Every day hundreds to people commit suicide because they are unable to control their
emotions. In day to day life all of us undergo different emotions such as love, anger, hatred
etc. To be successful and to lead a stress free life, one has to control one’s emotions.
‘Emotional intelligence’ is the study of proper understanding of the emotions of self
(self analysis) and others by putting yourself in other’s shoes (empathy) and try to connect
yourself properly with those around you and with whom you interact on regular basis. These
INCON - XI 2016 93
people around you can be from your office (such as your boss, subordinates, peers etc.) or
from home (spouse, children, parents, siblings etc.). If you are able to understand your
emotions and others’ emotions properly, and tactfully deal with them, you will be able to lead
a stress-free and successful life. Based on this assumption (hypothesis), I have started this
research.
2. Importance of the Topic
If the topic of Emotional Intelligence (EI) is understood properly, it will definitely help
the following:
[a] For working people to improve their relationship with whom they interact on regular
basis
[b] For management to improve their productivity and quality of staff members
[c] For employers and employees to maintain work-life balance
[d] To avoid unnecessary labour unrest
[e] To improve morale and motivation amongst employees
3. Objectives
The objectives of the study are as under:
1) To study the extent of awareness among respondents about Emotional Intelligence (EI).
2) To study how far the EI helps to carry out day to day activities stress-free life.
3) To examine the role of EI in leading a successful life.
4. Literature Review
As per Wikipedia, Emotional intelligence (EI) or emotional quotient (EQ) is the
ability of individuals to recognize their own and other people's emotions, to discriminate
between different feelings and label them appropriately, and to use emotional information to
guide thinking and behavior. The term gained prominence in the 1995 book by that title,
written by the author, psychologist, and science journalist Daniel Goleman. There are several
models of EI. Goleman's own model may now be considered a mixed model that combines
what have subsequently been modelled separately as ability EI and trait EI. Goleman defined
EI as the array of skills and characteristics that drive leadership performance. The trait model
was developed by Konstantin Vasily Petrides in 2001. It "encompasses behavioral dispositions
and self perceived abilities and is measured through self report". The ability model, developed
by Peter Salovey and John Mayer in 2004, focuses on the individual's ability to process
emotional information and use it to navigate the social environment.
Studies have shown that people with high EI have greater mental health, exemplary job
performance, and more potent leadership skills. For example, Goleman’s research in his
book, Working with Emotional Intelligence, indicated that EI accounted for 67% of the
abilities deemed necessary for superior performance in leaders, and mattered twice as much as
technical expertise or IQ. Other research finds that the effect of EI on leadership and
managerial performance is non-significant when ability and personality are controlled for, and
that general intelligence correlates very closely with leadership. Markers of EI and methods of
developing it have become more widely coveted in the past few decades. In addition, studies
have begun to provide evidence to help characterize the neural mechanisms of emotional
intelligence.
INCON - XI 2016 94
Definition
Emotional intelligence can be defined as the ability to monitor one's own and other
people's emotions, to discriminate between different emotions and label them appropriately
and to use emotional information to guide thinking and behavior.]However, substantial
disagreement exists regarding the definition of EI, with respect to both terminology and
operationalizations.
Currently, there are three main models of EI:
1. Ability model
2. Mixed model (usually subsumed under trait EI)[31][32]
3. Trait model
Different models of EI have led to the development of various instruments for
the assessment of the construct. While some of these measures may overlap, most researchers
agree that they tap different constructs.
5. Research Design
Descriptive Method
I have used descriptive method for my research data.
Sampling Method
I have used convenient sampling method for the research work.
Population
The population for my research study is from Pune at Pimpri Chinchwad and
surrounding areas in Pune; respondents include college students, teachers, married people,
corporate sector, etc.
Sample size:
The sample size is 90 people, which teachers, students, clerks, corporate staff etc.
6. Data Collection
Data has been collected through Primary Data with the following methods:
(a) Questionnaire method
(b) Interview method
(c) Observation method
Questionnaire consists of general information followed by 11 questions; out of which
10 questions are of objective types/close ended questions and last one question is open ended
questions i.e. ‘additional comments on Emotional Intelligence. For married people separate of
questions were made in similar line.
7. Data Analysis/Findings/Interpretation of Data
Table 1
Respondents’ Demographic Information(Total 76 respondents)
Profession Frequency %
Teaching (MBA/MCA) 34 44%
INCON - XI 2016 95
Profession Frequency %
Corporate 36 47%
Self employed 2 3%
Students 2 3%
College Librarian 2 3%
Age Group
Below 20 years nil 0%
20 and below 30 30 39%
30 and below 40 30 39%
40 and below 50 10 14%
50 and above 6 8%
Gender
Male 43 57%
Female 33 43%
Marital Status
Married 46 61%
Unmarried 30 39%
Qualifications
10th and 12th 2 3%
Graduation/Diploma 25 32%
Post-graduation 47 62%
PhD 2 3%
Table 2
Question: Have of heard of emotional intelligence earlier?
Remarks Response %
Yes 60 79%
No 16 21%
Interpretation:
79% of people have heard of emotional intelligence earlier. 21% have never heard of EI
Table 3
Question: Do you think the study and practice of EI will help corporates and academicians to
lead a stress-free and successful life:
Remarks Response %
Yes 73 96%
No 3 4%
Interpretation:
96% of people feel the study and practice of EI will help corporates and academicians to
lead a stress-free and successful life:
INCON - XI 2016 96
Table 4
Question: Do you have perfect knowledge of your own emotions?
Remarks Response %
Yes 59 78%
No 17 22%
Interpretation:
78% of people have perfect knowledge of own emotions. 22% donot have knowledge of
own emotions.
Table 5
Question: Have you tried to connect yourself with others (all around you) properly?
Remarks Response %
Yes 54 71%
No 22 29%
Interpretation:
71% of people have tried to connect themselves with others around them properly; 29%
respondents never tried to connect with others.
Table 6 (Remaining questions for married people only)
Question: Do you have difference of opinion with your life partner?
Remarks Response %
Yes 41 89%
No 5 11%
Interpretation:
89% of respondents accepted that they have difference of opinion with spouse; and only
11% do not have such difference with spouse.
Table 7
Question: If so how do you resolve the difference of opinion by?
Remarks Response %
Quarrel 3 6%
Arguments 12 16%
Leaving the place 3 7%
Sorting it out mutually 28 61%
Interpretation:
61% of people resolve the difference of opinion mutually, remaining respondents, either
quarrel and argue with spouse or leave home after quarrel.
INCON - XI 2016 97
Table 8
Question:
Don’t you think that the study of EI will help you to connect yourself with your family
in a better way?
Remarks Response %
Yes 41 89%
No 05 11%
Interpretation:
89% of respondents think that the study of EI will help them to connect themselves with
your family in a better way; only 11% respondents do not think so.
8. Qualitative Analysis of the Questionnair
Most of the respondents were very enthusiastic on this research topic and after detailed
discussions with respondents we have received many suggestions, out of which a few
suggestions are given below:
(a) It (EI)is to be practiced, not just a study theoretically.
(b) EI cannot be developed in a single day training, but to be practiced from childhood.
(c) I think, media has great responsibility in their news presentation..
(d) The subject (EI) should be included in academics as a part of curriculum and trained
faculty should be assigned the task.
(e) EI is very useful to learn in OB, we can work more peacefully…and can make our lives
more healthy by respecting other’s emotions
(f) FDP in academics and EDP in industries should be arranged for getting healthy
environment. Dialogue must be regular with family members, to clear many family
matters.
(g) EI is an interesting concept. It will help in decreasing disruption in our society.
(h) Perhaps, EI will help us to manage boss, subordinate and life partner. etc.
Conclusion
We explained the concept of EI very clearly to respondents before getting it filled, to
avoid any confusion on this topic for better authenticity and to collective objective
information. The respondents were most teachers from a management college and 15 were
from corporate. Almost all respondents were very eager to fill the questionnaire and they felt
that this topic was interesting and beneficial for them. We would like to share our experience
that, while filling up questionnaire at corporate sector, one respondent had emotional problem,
for which we could provide some solutions, which was accepted by respondent. To conclude,
the need of the study of EI has been felt by almost all respondents and the same should be not
only be included in academic curriculum for all sectors such as management, IT, engineering,
medical etc. but also in training schedule in corporate sectors, so that all students and
employees will be able to lead a stress-free and successful life. There is also scope on more
researches on this topic is not getting its due importance and hence our research work.
INCON - XI 2016 98
REFERENCE:
[1] Organisational Behaviour – BY Stephen P Robbins, Timothy A. Judge, Neharia Vohra
[2] Emotional Intelligence – By Daniel Goleman
[3] Wikipedia, the free enclopedia.

INCON - XI 2016 99
“Examining the Best Practices in Performance Appraisal”

“In Siemens”
Prof. Meenakshi Singh Prof: Sangeeta Solanke
Email id: m.singh2829@gmail.com Sangita.lrs@gmail.com
ABSTRACT:
This research study is conducted on one of the core activities of the human
resource department. Irrespective of whether a particular company is small or big in
size, companies do have a proper appraisal process in place. Wherever there are
enough employees to do appraisal, this activity is followed in that company. Other than
salary hike, performance appraisal has several objectives. It is also equally important
that it is a periodic, transparent, motivating, effective, and an unbiased activity. It
should not be a cause of disharmony amongst employees. In this research study, what all
best practices are observed in industry with respect to performance appraisal are
studied carefully. This is done so to improvise the appraisal procedure followed at one
of the IT companies in Pune- Sie, Hinjewadi. Like most big companies, siemens also has
a well thought appraisal process to evaluate more than 1,500 employees. To investigate
any shortcomings, if any and further what all new steps could be incorporated into the
current appraisal process, a thorough understanding of what other IT majors do, was
crucial. During the initial phase of the study, assimilation of siemens appraisal process
was very important. This helped in giving the very first glimpse of how IT companies
evaluate employees. Based on this, the rest of the study was carried out by strictly
keeping in mind what practices are observed in siemens and what improvements it
needs.
Key words: Performance appraisal & Appraisal method, siemens Hinjewadi.
Introduction:
The history of performance appraisal is quite brief. Its roots in the early 20th century can
be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the
same may be said about almost everything in the field of modern human resources
management. As a distinct and formal management procedure used in the evaluation of work
performance, appraisal really dates from the time of the Second World War - not
more than 60 years ago. The human inclination to judge can create serious motivational,
ethical and legal problems in the workplace. Without a structured appraisal system, there is
little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate.
In many organizations - but not all - appraisal results are used, either directly or indirectly, to
help determine reward outcomes. That is, the appraisal results are used to identify the better
performing employees who should get the majority of available merit pay increases, bonuses,
and promotions. By the same token, appraisal results are used to identify the poorer
performers who may require some form of counseling, or in extreme cases, demotion,
dismissal or decreases in pay.
Problem statement:
INCON - XI 2016 100

A research study conducted to examine the appraisal system followed in siemens
Hinjewadi.
Hypothesis:
An appraisal process if,
1. Customized exactly to the organisation’s requirements can be more effective in terms of
satisfying the very basis (intention) of conducting appraisal.
2. Not transparent, may cause lack of motivation amongst employees.
Objectives:
1. To understand how performance is measured and appraisals conducted.
2. To study pros and cons of the appraisal system followed.
3. To investigate the scope for improvement and suggest possible improvisations (For
appraisal procedure at siemens).
Research design
Exploratory design- Experience survey method
In exploratory research design any specific problem can be studied. Here, it is to study
the effectiveness of appraisal procedure followed in 3 D PLM .To do so, the ‘Experience
survey method’ of exploratory research design is adopted. According to this method, people
who have practical experience in the problem under study are considered as respondents.
These respondents are then interviewed by an investigator. This gives the respondents the
opportunity to give some thought and suggest possible solutions to it. In this way they
contribute effectively to the research. A questionnaire was given to every respondent in this
research. It is provided in the annexure for ready reference. After filling it, respondents had to
discuss it point wise, answering all queries thus initiated.
 Sources of data
Primary
The primary data was collected with the help of a questionnaire. Also after getting the
questionnaire filled, the respondents were asked to explain once again the appraisal procedure
in detail. The key point is that data thus collected is unique to this research, and does not form
basis of any other study. The data however is nearer to perfect if not accurate.
 Secondary
The secondary data is collected from reference books, online books, newspapers,
magazines, and the Internet.
 Sampling plan
 Universe of population
 Universe: In this research, IT organization has been taken into consideration.
 Population: It is a finite population. The inferences drawn in this study are on the topic-
Performance appraisal system.
INCON - XI 2016 101

 Population element: The broad elements of appraisal system that are included here are-
type, way of calculating the appraisal, its shortcomings, and ways to overcome
limitations.
 Sampling units
It is a ‘Construction units’ as an IT Organisation.
 Size of the sample
In all 1 organization has been taken into consideration.
 Sampling techniques
The technique used here is non-probability sampling as the researcher has chosen
the company to be included in the study.
 Statistical tools for analysis
The analysis of data is a process under which the relationships or differences supporting
or conflicting with the original or new hypothesis, should be subjected to statistical tests of
significance, to determine with what validity the data can be said to indicate any conclusion.
Here Microsoft Excel is used for doing data analysis. Here the primary data collected is
converted in the percentage format. The data analysis is displayed in the form of pie-charts
and bar-charts. The data is converted to percentages of the total and these percentage segments
give a clear picture of the relationship among the components parts.
 Questionnaire design and analysis
The questionnaire was designed in order to collect data relevant to the problem. The
questionnaire in all has 15 questions. Out of the total number of questions, 8 are open - ended
and 7 are close - ended. Further, Q1 to Q3 provide company’s basic information and Q4 to
Q14 provide information on the topic. Q15 was specially added to obtain comments of the
respondents.
 Limitations
i) The sample space considered is small.
ii) The data obtained is dependent on personal opinions.
Literature Survey:
Performance Appraisal System
Performance appraisal is the process of obtaining, analyzing and recording information
about the relative worth of an employee. The focus of the performance appraisal is measuring
and improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does.
According to Flippo, a prominent personality in the field of Human resources,
“Performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his present job and his potential for a better
job."
Performance appraisal is a systematic way of reviewing and assessing the performance
of an employee during a given period of time and planning for his future. It is a powerful tool
to calibrate, refine and reward the performance of the employee. It helps to analyze his
achievements and evaluate his contribution towards the achievements of the overall
organizational goals. By focusing the attention on performance, performance appraisal goes to
INCON - XI 2016 102

the heart of personnel management and reflects the management’s interest in the progress of
the employees.
Data Analysis and Interpretation:
(I) Data Collection
Performance appraisal system in siemens Hinjewadi:
Objectives :
1. Establish and document individual and unit performance commitments related to
committed work.
2. Regularly discuss the performance related to committed work in order to identify actions
that can improve it.
3. Identify areas of performance concerns and imitate remedial actions.
4. Provide a foundation for planning future development.

The performance appraisal system is primary based on ‘Commitment Setting’.
Commitment is a simple, short and clear statement specifying what the appraise wish to
achieve. It is mutually agreeable between the appraiser and appraisee.
Appraisal cycle:
Appraisal Cycles: There are 2 cycles:
Midyear – April 1st to September 30th
Annual- October 1st to March 31st
Appraisable Period: The period that an employee is eligible for assessment. If joined
before April 1st, the entire relevant cycle, else:
Midyear – September 30th minus date of joining (all joinees after July 31st will appear
in next cycle)
Annual- March 31st minus date of joining (all joinees after December 31st will appear in
next cycle)
Appraise:
An individual (permanent employee) who is appraised
Appraiser:
An individual (permanent employee) who appraises
Appraisal Process in siemens:
 Setting Appraisee
 Upward Feedback
 Self Appraisal
 Manager Feedback
 Acceptance
 Behavioral Competency Appraisal
 PCMS Guidelines for assessment & Behavioural Competency
INCON - XI 2016 103

 Goal Setting Process
The process is initiated by manger by setting sheet and then filling in goals
Only on “publishing” of a phase can the next phase begin
In “save” mode the data is NOT visible to other party; except in case of goals wherein
even in save mode the appraisee can view the goals. A mail is sent to appraisee every time the
appraiser appends/changes the goal sheet.
At the “publishing” of any stage a mail is sent to relevant party informing of the end of
one phase and asking them to start the next.
Conclusion:
Siemens Hinjewadi has been using third party for performance appraisal i.e ATYASA
CONSULTING PVT LTD. However they are making certain changes in it. Therefore it was
important to understand the industry best Practices first. And then what changes can be
incorporated to make it an effective system. During this study, it was observed that if the
appraisal process is not transparent then, it becomes one of the causes for lack of motivation
amongst employees. This further may also lead to disharmony in the organization. Whether it
was the information technology companies or others, the bar chart for the same showed this
very result. Primarily the reason for this upsets is because every employee wants to be
recognised for the work he does. And if he feels that evaluation is an internal activity of
management then this leads to unrest in his mind and so he starts losing interest in the job role.
It is even more important that a company has an exclusive appraisal system just
according to its needs, similar to what is observed at many companies. Right from goal setting,
an employee is made to participate in almost all activities. Having just one method to
determine the entire performance of an employee seems an unfair practice. From immediate
implementation point of view, it is better to have a combination of various methods. The
appraisal process surely has scope for improvement. And when all the aspects are modified, it
will turn out into an effective appraisal system.
Recommendations:
1. Allotting weight ages to KRAs.
At siemens, objective is not broken down into KRAs and also KPI concept is not
observed. This leads to people concentrating on many tasks at the same time leading to
poor performance. It would be much better if KRA –KPI concept is implemented. Also
employees should be made to participate actively into this entire activity.
2. Appraisal method
Instead of having only forced distribution, there are three ways in which appraisal
method can be changed. A combination of three to four different methods is a bit
simpler option. The combination can be of paired comparison- for comparing any two
competing employees with same job role, BARS- a ready set of descriptive statements
for every job role, 360 degrees- so that peers can also input their contribution, and MBO-
to breakdown organizational goals into KRAs.
Appraisers
INCON - XI 2016 104

Like Wipro, having more number of appraisers will help reduce appraiser’s biasing. The
more appraisers contribute, the more accurate the evaluation will be. Also colleagues or
peers need to be included as any employee spends maximum time with his colleagues in
the office than with his superiors. So their opinion is also important from evaluation
point of view.
3. Goal Setting
Balanced score card considers four perspectives while setting goals for an employee.
Having individual employee’s goals in line with company’s goals or objectives would
enhance the working of the organization as a whole. Having employee goals to be:
specific-measurable-accountable realistic time bound, it would be a better option to have
them with respect to customers, financial, internal business and learning & growth
criteria. Because even siemens has regular interactions with its client customer, a
financial dimension to the business and also other two aspects.
4. Following is a suggestion as to how objective can be broken down and allotted weight
age and grades.
Here, the organizational objective constitutes to a total of 100%. This is broken down
into three different KRAs such that, KRA1 has maximum weightage of 80%, followed by
KRA 2 and KRA3 having equal weightage of 10% each. So when all 3 KRAs are Completed,
that will complete the objective 100%.
Bibliography:
Books:
 Human Resource Management by Ashwathappa
 Personnel Management by C B Mamoria
Websites:
 www.citehr.com
 http://books.google.co.in
 http://businesstoday.intoday.in/
 http://appraisals.naukrihub.com
Magazines

INCON - XI 2016 105

A Study on Soft-Skills Training and Cultural Sensitization of Indian BPO

Workers
Dr. D. B. Bagul Ms. Nisha Bedekar
Principal, ASM- In-charge Principal PhD student at IBMR, Chinchwad, CSIT
Chinchwad, Pune, India Pune, India
ABSTRACT:
This paper describes the importance of soft-skills in Business Process
Outsourcing sector of Indian Indian organisation also called as ITes companies. The
study of soft-skills training was carried out at in Bangalore, India over a period of two
months. This paper also explains the end to end transition of a new recruit till he/she
gains expertise in customer handling with cultural awareness. A qualitative approach
has been adopted consisting of methods like long interviews, observations on the
operations floor and secondary information gathered from floor managers. A framework
has been built with the information gathered for future studies.The research includes
Abstract, Introduction, theoretical background of BPO industries, soft-skills training,
Methodology, presented in a suitable manner.
Soft Skill Training:
The BPO sector is workforce oriented and hence every employee belonging to this
industry is a resource for the organization. Therefore, for organizational growth lot of attention
needs to be given on the talent acquisition and skill development so as to have a talent pool
where the resources are not only adept in technical skills but also in soft skills such as
analytical skills, problem solving skills. Often, the resources in the BPO industries are
required to interact directly with the client from across the globe belonging to various
countries, cultures, perceptions, nuances, temperament on a one-on-one basis via telephone or
instant messaging systems and therefore required to possess personality traits or commonly
referred to as behavioral skills or soft skills such as social grace, friendly tone and attitude,
optimism, empathy etc.
Considering the above, the questions that one might ask is
 How do Indian BPO organisations train their workforce?
 What kind of content , pattern of training do the these organisations adopt?
 With constantly changing requirements and clients how do these industries manage to
keep the flexibility?
 How do the managers and trainers assess the training programs
 What kind of methodology is adopted to train the trainer.
To address the above questions, training in the BPO industries are categorized in two
broad categories, namely, Technical Training and Soft-skills Training.
Although, both of them have their own importance but are exclusive of each other in
nature with reference to their design and pattern.
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Cultural Sensitivity:
Cultural Sensitivity can be described as an awareness, understanding and knowledge of
different cultures in terms of their speech accents and patterns, social etiquettes, sports,
nuances, national and individual identities, festivals, perceptions and other cultural artifacts.
While interacting or addressing the issue of the client, all these characteristics need to be
considered by an Indian BPO resource. Therefore, it becomes extremely important for the
BPO employee to be culturally sensitive towards the client so as to have a smooth and
successful conversation between the BPO employee and the client. Therefore, soft-skills
training carry equal importance as technical training in the context of BPO industries. Hence,
this study focuses on the soft skills training in Indian BPO organization. (Technical training in
the Indian BPO industry can be taken as a separate subject of study)
Methodology
Qualitative research methodology has been adopted, and the focus was restricted to soft
skills training in a single BPO firm located in Bangalore, India. The firm is HP Global
Delivery India Center (HP-GDIC). The purpose or intention of restricting the study to a single
firm was to have an in depth understanding of the organization’s philosophy, concept and
implementation behind the soft skill training. Such type of qualitative study in a single
organization to get an in-depth idea is widely accepted in the practice of qualitative research.
From the results of the study I hope to identify and develop a broad framework of additional
question that could form part of larger studies of BPO industries in India as well as in other
countries. The organization selected for the study is one of the biggest IT groups operating in
India and one of the top ten BPO firms.
Data was collected through interviews with few people of various verticals and domains
including training managers, trainers and Head of Human Resource of the organization to
agree for basic confidentiality and non-disclosure agreement conditions. The information was
gathered by way of long meetings and discussions with the managers and trainers. It was a
one-on-one face to face as well as conversation over phone. The questions asked were open
ended with sufficient flexibility to elaborate the responses. Some evidences were collected by
directly observing the operations floor of the BPO industry. Typical BPO industry work
environment in India and the issues faced by these industries from various audio visual
sources. The data analysis was done to analyze and arrive at certain conclusions about the soft
skills training in BPO companies.
1. Get the picture of BPO environment as it was few years ago.
2. Understand the soft skills training program in BPO industries
3. Identify existing issues and challenges in BPO environment
Current scenario of BPO Industry in India
Issues faced while coping up with the fast changing client requirement in the last few
years
BPO manpower planning, soft skills training requirement and fulfillment, issues faced
by the BPO employees and analysis and interpretation from the data gathered and conclusion.
Indian BPO firms: Problems and challenges of Growth
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Clinton (former US president), Bill Gates (Founder – President of Microsoft
Corporation, Alan, Greenspan (Chairman of the US Federal Reserve) and Marc
Andreessen(Founder of Netscape Communications) among other, besides votaries of the
Indian BPO industry and despite anti-outsourcing actions, India’s BPO industry grew by leaps
and bounds in last 5-10 years.
Training for BPO workforce
Given this stimulus towards personnel requirements and training, this section looks for
the details at the training program. Two training managers, 4 trainers were interviewed for the
study and actual observations were carried out on the operations floor in the BPO
organization, studied.
A typical Flow of the Action
After securing the outsourcing contract from the client, the project transition team gets
into action.
The Project Transition works in co-ordination with the point of contact from the client
organization to determine the minute details of the work pertaining to the process being
outsourced to the BPO organization. Most of the times it is a technical support contract that so
the exact level of support to be provided is identified by the project transition team. The level
of support depends on the complexity of the issue and the technical competency required to
resolve it. Accordingly, the level of support ranges from ‘1’ to ‘4’ . Typically, Level 1
represents a fairly simple issue such as registering username and password. And ‘4’ might
represent providing a stepwise detailed solution for the issue or advanced bug fixing.
The kind of domain expertise and the complexities of the issue thus identified at this
stage defines the qualification, domain knowledge, skill set, competencies, experience etc
required by the resources and help to set the candidate profile for hiring.
The Hiring Stage:
As per the requirement specifications set by the project transition team, the human
resource department form the hiring and training program depending on the number of
resources decided to be hired in co-ordination with the Project transition team. The type of
recruitment is decided accordingly.
Selection Process:
Typically, selection process of the prospective technical support team candidate has an
English test, a technical test, an aptitude test and a voice test to his his/her suitability.
Elimination of the candidates take place at every stage. The test are sequential and the
candidate is expected to pass all the tests. For example, if the candidate does not pass the
English test then he/ she is not allowed to attempt the voice test and technical aptitude test.
Consequent to passing the tests the successful candidate is then allowed to appear for rounds
of interviews by the panel of team consisting of representative from Operations department
and training department. Panel member from training department assess the technical training
needs for the newly recruited resources. The operations department is responsible for the
running of day to day BPO operations. Lastly, the candidate is interviewed by the HR
department for background verification and general behavioral skills.
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Training Overview:
Once the hiring part is over, the process of training for the newly recruited resources
starts. Now the new recruits are referred to as an ‘agent’.
Soft skill Training is a first and mandatory part of the training program to be taken up by
an agent or newly hired employees by the BPO organization, who attend the customers’ call
on the operations floor. Soft skills training include voice and accent training, customer
interaction, issues related to geographical and cultural awareness.
Pre-process Training:
This training is imparted after the soft skill training is completed by the agents
successfully. This type of training is imparted to the agents who are selected to provide
technical support for a particular process or product which includes training in general
software, hardware and networking concepts depending upon the requirement. After
successful completion of pre-process training, the agent has to undergo product, process or
help-desk training depending on the requirement and An example of ‘product’ could be a
software used in accounting/ engineering / manufacturing industries. A ‘process’ could be
payment and collection of certain goods from a super shoppee. Soft Skills Training and the
Product & Process Training both goes hand-in-hand, as both have equal importance & the
agent is assessed accordingly. In short, a collection of activities that takes one or more kinds of
inputs and creates an output that is of value to the customer. The service required here could
be how to use the product or steps to follow in a process of doing/ getting something. Process
training could also include policies and directions/ validity of certain products and processes
relating to customer relationship. Help desk related training is more or less generalized kind of
training to rectify commonly occurring issues of multiple vendors such as banking related,
health related etc where as product or process related support typically focuses on a single
vendor’s product. Once the designated trainings are completed, the agents are given User
Acceptance Test (UAT). It is conducted in the presence of his/ her trainer, a member from
operations team also referred as ‘user’ of the agent, a quality specialist, a softskill coach. The
agent is made to attend a mock all during which he/she is judged for technical competencies,
quality, voice and accent and intonations. After the call the trainer either certifies the agent to
proceed to the operations floor or needs more training and mentoring. An agent going to the
operations floor is referred to as ‘Going live’ working independently in a large operations
room along with several other agents answering customer calls.
Training Duration:
The entire training period of various stages and training process takes near about 10-12
weeks from the joining date of the selected candidate.
Then comes the aspect of soft skill training
Cultural Awareness and soft skill training
In the BPO industry where the study was carried out the softskill training was a part of
HR process.
Baseline Assessment:
This kind of assessment primarily focuses on the agent’s current communication skills
and accent specifically of those agents who join the organization as ‘Laterals’. Depending on
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the same their training schedule and duration are designed. ‘Laterals’ are hired from other
BPO sectors. Upon hiring such agents they are judged for the current requirement in the
organization and if found necessary they are imparted the required training so as to bring them
the required level of competency as specified by the operations team.
Overview of Cultural Awareness
In HP BPO, soft skills training is focused on an agent’s voice modulation, cultural
awareness of geographical and cultural issues and cultural nuances. The purpose of this was to
create awareness, appreciate and accept the client embodying with all this. This also helps the
BPO organization to accept the world wide support contracts from UK, US as well as Asian-
Pacific countries such as Singapore, Australia, New Zealand, which means they have
workforce who are ‘culturally sensitized’ to all these countries and regions and can establish
or maintain a better customer relationship status.
The course content:
The training course content designed for cultural awareness gave an insight of various
regions, geographical locations and also included practice sessions on the pronunciation of
names places and people from across the globe such as about festivals, holidays, climate,
religion, sports, education, common slang words, politics, manners and etiquettes and various
other aspects of culture
The Role of the Soft skills Training Manager :
The role of the training manager is to first assess the type of support offered, region,
country etc and then decide the percentage of time to focus the specific topics. The transition
team gets this information from the client by direct observation from the calls and by studying
the records they do what is called as ‘Call Segmentation’ i.e, what type of calls come in,
region or location and the major/ critical issues. This information is used by the training
manager to plan the training program, course content, duration and focus the specific issues in
the training programe.
Client –customization and the Soft Skills Team
The soft-skill training manager managed a team consisting of soft skills trainers. The
team typically worked with the project transition team in getting a profile of the client and
customer in order to develop a ‘script’ for each client/ customer.
During an onsite visit the project transition team studies the work culture of the client
like formal or informal, manner of addressing the team members etc. The Training manager
prepares a set of 10- 15 questions and gets them answered from the transition team which were
then used to customize the training content for a specific client. The agent was trained in a
manner so as to reflect this culture while dealing with the customer from the client’s side.
Then the typically customized opening script would be like “Welcome to total
healthcare”. Clients are identified in the real time from their Id numbers and not by their
names. Depending on the openness of the client’s culture and way of talking the agent then do
a ‘small talk’ on a general topic while dealing with the customer’s issue. The topic of ‘small
talk’ are to be of generic nature such as climate, holiday, sports festival etc.
Outsourcing Cultural Awareness Training
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On some occasions, soft-skill training requires detailed knowledge about different
cultures and their nuances. For example, if the client’s customer are likely to be from
Scotland, then it is useful to know the peculiarities and nuances from that specific region or
country. If the BPO organization does not have a trainer of such knowledge and
comprehension then it outsources that particular training to some other ‘culture trainers’ who
possessed such knowledge of specific region or culture. These external culture trainers then
prove to be of much value at the time of conversation with the client’s customer from that
region such as some exclamatory sound, a peculiar style of talking , unique expression etc.
The culture trainers provide agents with in-depth familiarity to the cultures they specialize in.
In case such external culture trainer is not available, the Training seeks help from the client’s
organization to formulate the specific culture training. A trainer is then sent to the client’s side.
When the BPO industry seeks the help of such external culture trainer, the outsourced trainer
then follows the same policy and pattern of training in co-ordination with the HR and soft-skill
training manager. The HR manager of such BPO keeps a close contact with such Culture
Trainers or Training Partners.
During this study I observed that there is a rising trend in BPO industry to outsource the
culture training, language skill development and accent neutralization to culture training
partners. A new ancillary industry has emerged due to this trend in major cities in India.
Large number of Indians have migrated to various countries across the globe over decades and
have been successfully participated in business, academics, politics and culture of their
adopted countries. These people have now started returning to India with their new skills,
qualification, culture and experience which is of a great value to the BPO industries. In most
cases, family members of the professional provide cultural training assistance to these
organisations.
Training Methods
As mentioned above, soft-skills training comprise of several components –culture, voice,
accent customer handling etc. The training of these modules take place in the trainer –led
classroom session followed by a language based group discussion, extempore speaking,
reading aloud etc.
Listening Comprehension
Part of the customer service training involves specific exercises in listening. For
example when training an agent to support the UK and US clients, the trainees are made to
watch british and American movies and popular television shows for them to understand and
get the feel of the conversational British and American language and accent. After the
screening, questions related to the movie are asked to test the comprehension. The agents have
access to the libraries of such CDs.
Role Play
Role play is an important part of the training where a member of the training team would
act as a customer and pose a request such as “I have this issue with my computer and need
help on this.” The agent trainee would then is expected to ask appropriate questions and
perform the correct procedure of ‘call opening’. The ‘client’ would pose to be very anxious to
get the solution for issue. The agent, however congnizant of the client’s requirement will have
to follow the procedure call opening, getting the data from the client, log in the data into the
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software and then trouble shoot the issue at hand. Along with carrying out the technical part of
the transaction, the agent will also have to deal with ‘Customer behavior’ like sometimes the
client might get irritated waiting on the line for a little longer. Make the client understand in a
simple way. The result of this should be client satisfaction and the agent should be able to
handle the call properly. These issues are spread over the training period and over a period of
2-3 weeks the difficulty level of calls is raised and by the last week of the training the agents
are fully prepared to handle irate client situation through a role play making the situations as
realistic as possible to the extent that the client is not willing to co-operate and wanting to talk
to the CEO. Such situations are recorded and played back in the training session for all the
trainees followed by feedback and improvement techniques from the trainer.
Real-time Coaching
At the time of User Acceptance Test (UAT) which takes place in the presence of a soft-
skills trainer, product of process trainer, a quality specialist and member of operations team, if
problems are found, due to which the agent is not certified to ‘Go live’ then the agent has to
undergo a more specific coaching so as to address the difficulties faced by the agent. If the
problem faced is related to soft-skills then the agent undergoes training from a soft-skills
coach. Sometime, the soft-skills coach continues to be with the agent even when the agent
starts working on the operations floor so as to notice problems that might come later.
Performance Monitoring and Assessment
Once an agent goes ‘live’ on the operations floor, he/ she are kept on at the operations
floor for at least three months so as to get themselves stabilized and accustomed to the
environment. During this period each and every call that the agent handles is recorded for
performance assessment and quality purposes. Performance of an agent is assessed by his/her
confidence in conversation; quick decision/resolution; Listening skills; understanding
customers' difficulty & Customer's knowledge about the product & usage to judge while
troubleshooting. Exact notes while call handling (which are helpful in knowing call history)
also play vital role in assessing the performance of the agent. Every customer on call is
different & just 'resolution on call' is not enough. Out of these, some calls are selected by
quality control personnel. If the problem arises in the calls during the initial few weeks, the
agent is again sent to get coaching on a one-on-one basis. However, if the problems arise at a
later stage like neglecting to say ‘thank you’ while putting the client’s call on hold, neglecting
to apologize when required, not doing ‘small talk’ with certain clients and so on. Such
performance problems are either identified by quality control manager or by the client’s
quality manager who could then report to the BPO organization about a particular agent’s
performance or recommend additional coaching to bring him/ her up to the mark. The same
thing can be done by operations manager who also monitors agents’ calls on the floor and
recommend additional training to improve on some specific skills.
The HR or the soft-skills department keeps a track of the agents on the operations floor
with view to identify top and bottom performers. Accordingly, underperforming agents are
assigned to further training for improving their performance. However, this happens only once
with each agent. Inspite of the training if the agent is not able to perform at the operations
floor then further decision is taken by the management. Before finalizing the calls for
remediation coaching, HR or soft-skill trainer in consultation with the operations manager
identifies the issue and it’s complexity. Then the managers decide what kind of additional
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training is required for the concerned agent. Whether it is service training, attitude training etc.
Accordingly, an appropriate course of action is recommended.
Once the ‘base-lining’ is done, the HR manager in co-ordination and consultation with
operations manager prepares the details of the agent’s problems and plan for remediation with
approximate duration for executing the remedial plan. The baseline assessment result are also
communicated back to the concerned agent stating his performance and position. He /she is
also informed about the remedial plan.
Depending on the nature of the problem, soft-skills or process or product-related
problem appropriate soft-skill and technical coach is appointed to work with the agent,
accordingly. The coaching is done on a one –on –one basis. The coach plays back the recorded
calls in front of the agent and asks him to explain as to what happened and where did he/she
go wrong. Accordingly, coaching is given to correct the specific issues in the call. If the it is
noticed that the entire team is making the same mistake then the remedial classroom coaching
is given to the entire batch of the agents. For example there could be errors in pronunciations
of certain words or letters, improper opening or closing of calls etc.
The above note shows that soft-skills training is given high importance and is taken very
seriously by the BPO industries and efforts are being taken to develop systems, processes to
assess, monitor and train to offer remediation of soft-skills to bring the standard of BPO
industries up to the mark.
Challenges Faced by the Indian BPO Environment
Rapid growth of BPO industry in India can be attributed to the cost and wage difference
between the developed and developing countries and also to the large numbers of well trained,
English speaking Indian BPO resources. Despite the political backlash of US and UK the
Indian BPO industry is growing at a very fast pace. More and more back office and customer
support jobs are coming to India are a proof of that. In such a situation, the Indian BPO
industry is bound to face workforce challenges in terms of it’s turnover. There could be
number of reasons behind this.
Young English speaking Indians, working at odd timings (working hours from evening
to dawn ) in various BPO organisations to support US and other European processes are
exposed to a host of health issues such as inadequate sleep, digestive disorders, hair loss, back
pain. BPO workforce also faces psychological disorders, personality problems. Although
Indian BPO industries claim that they try to make the working life in their organization better
by constantly motivating employees with various awards, recreational and sports activities.
However, it remains challenge for them to cope up with the workforce attrition and the effect
it will have on soft-skills training in future.
Analysis and Conclusion
The study was done in BPO industry in Bangalore particularly the soft-skill training
methods, schedules and pattern that they adopt to provide quality services to the clients abroad
to bring in organizational growth. This was a qualitative and interpretive study made to
understand various aspects that contribute to soft-skills training in BPO sector. The BPO
industry that was studied followed a highly evolved training process which also encompasses
processes like recruitment, quality to bring in continuous improvement and maintenance in
the quality of services provided to the customers by providing various types of trainings and
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practical sessions to the workforce to make them able to perform on the operations floor by
effectively interacting with the clients across the globe. There are number of other processes
which help the transition team, operations team, HR and recruitment team, soft-skill and
technical training team and quality team to work in co-ordination to find solution to all the
problems and make the end to end activity seamless.
The client organization also plays important role to help the BPO organization in India.
The other contributing organization is the culture trainers or culture partners who form
ancillary industries in Indian cities like Bangalore, Mumbai, Chennai, New Delhi. Rapidly
growing Food and catering industries in these cities also contribute to the growth of BPO
industries as they provide food to these industries during night time. The spawned logistics
industry is also a result of growing BPO industris in these big cities.
Conclusion:
This study shows that the BPO sector organizations are going to be long-term players in
the growing economy of the world. Currently, countries like India is emerging as major BPO
hub for these companies. It is an industry that possesses huge potential to offer growth to
millions of educated young crowed in upcoming economic scenario. It also has capacity to
displace millions of workers in countries like US and other European countries which may
cause political turbulence. Due to long and abnormal working hours in this sector health
problems for BPO workforce would likely to remain a matter of concern and attrition for the
management which may cause high employee turnover in this sector. To get a bigger and
complete picture of BPO training vertical the above framework can be used including more
BPO organizations to study various issues and policies of training and other processes
involved.

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Nokia Knocked Out from India: Shattered dreams of employees

(A Case Study Development)
Prof. Shyam Narayan RAI
Assistant professor
ASM’s Institute of professional studies, Pimpri,
Pune, India
raishyam62@gmail.com
ABSTRACT:
Once a showpiece of foreign investment, the factory at Sriperumbudur, about 45
km from Chennai, now looks like a ghost entity. For the around 30,000 workers, 31
October 2014 will forever be Black Friday as Nokia officially shutdowns its plant in the
state, nine years after it entered India. Nokia's closure will be the first major wind up by
a multinational after the Narendra Modi government took charge in May. Established in
2006 over a 200-acre site, Nokia wheeled out the 'Made for India' 1100 model and then
slowly ramped up production to make Chennai its single largest unit for handsets
globally. Nokia and its suppliers had invested over Rs 1,800 crore in their facilities.
Keywords: foreign Investment, Black Friday, ramped up
Introduction
Nokia started operations at Sriperumbudur plant near here - the second biggest facility
by any global firm - in 2006 after Korean auto major Hyundai's came up with its plant in the
late 1990s.
After inking the agreement with the Tamil Nadu government in 2004, Nokia began
operations at the facility. It directly employed 8,000 people and another 25,000 were
associated indirectly with the firm when the facility was operating in full swing. The facility
was producing some of the basic GSM handsets. It was serving the local market, besides
exports. However, its decision to sell off the handset business to Microsoft Corp in a $7.5-
billion deal earlier this year forced to keep the factory out of the agreement due to a tax
dispute with Indian authorities. The plant's success attracted attention. The then Prime
Minister Manmohan Singh, United Progressive Alliance Chairperson Sonia Gandhi, and seven
union ministers, including P. Chidambaram and Dayanidhi Maran, visited in August 2007.
"They spent about three hours. Chidambaram played interpreter. Sonia Gandhi was very keen
to know about working conditions and salaries and how the women were trained," the former
Nokia executive who hosted the ministers, says. Academics were impressed too. Robin
Jeffrey, research professor at the National University of Singapore and author of Cellphone
Nation - which analyses the social transformation mobile phones have brought about in India -
visited the plant in 2010. "For the young women working there, it was an experience unlike
anything their forebears would have had. They were becoming relatively independent, wage-
earning individuals, thrown together with scores of unknown people," he says. He rates it a
fine example of benign capitalism.
In March, the Tamil Nadu government served a Rs 2,400 crore tax notice on Nokia,
saying the firm had also sold products from the Chennai plant in the domestic market, instead
of shipping them overseas. In a separate tax case, the Supreme Court had ordered Nokia India
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on March 14 to give a Rs 3,500 crore guarantee before it transferred the plant to Microsoft.The
Nokia-Microsoft deal was completed on April 25, 2014, but the Chennai facility could not be
transferred to Microsoft due to legal issues related to tax demand by the Indian government. In
a statement early this month, Nokia said Microsoft had informed the company it would
terminating manufacturing services defined in the deal, effective from November 1, 2014. "In
the absence of further orders from Microsoft, Nokia will suspend handset production at the
Sriperumbudur facility from November 1," Nokia said.The company had also said the asset
freeze imposed by the tax department prevents Nokia from exploring potential opportunities
for transfer of the factory to a successor to support the long-term viability of the established,
fully functional electronics manufacturing ecosystem. Following the deal inked with
Microsoft, Nokia offered a voluntary retirement scheme (VRS) to about 5,600 employees.
Nokia had said in the statement that as a responsible employer, it was evaluating options
to minimize the impact on existing 851 employees at the facility. According to Nokia India
Employees Union, production at the unit began dwindling from 13 million handsets to just
four million units per month in March 2014. A major portion of machinery from the plant was
shifted to other manufacturing facilities of Nokia in Vietnam, they said. Nokia had said it
would inform all stakeholders, including the Labour Commissioner of the suspension of
operations.
The factory, the largest for the company in the world, last year was caught in a legal
battle between Nokia and the income-tax department over alleged tax evasion. The assets of
Nokia, including the factory, were frozen leaving uncertainty around the transfer of the factory
to Microsoft.
Nokia Company
Nokia is a leader in the fields of network infrastructure, location-based technologies and
advanced technologies. Headquartered in Espoo, Finland, and with operations around the
world, Nokia invests in the technologies of the future. Nokia have three strong businesses:
1. Nokia Networks, network infrastructure business;
2. HERE, location intelligence business; and
3. Nokia Technologies, which is focused on technology development and intellectual
property rights activities.
Through these businesses, It have a global presence, employing around 57,000 people.
Nokia is also a major investor in R&D, with investment through the three businesses
amounting to more than EUR 2.5 billion in 2013.
Until recently, Nokia also was a key participant in the mobile devices market through its
Devices & Services business. In September 2013, Nokia announced an agreement with
Microsoft whereby it would sell substantially all of its Devices & Services business to
Microsoft. The transaction was completed on April 25, 2014.
Nokia structure
Structure optimized for growth and innovation
Nokia has a simple and clear operational governance model, designed to facilitate
innovation and growth. Its three businesses report to the Nokia President and Chief Executive
Officer, Rajeev Suri, who has full accountability for the performance of the company. HERE
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and Nokia Technologies each have a single leader reporting to him. To ensure efficiency and
simplicity, Mr. Suri assumes direct control of the Nokia Networks business and key Nokia
Networks leaders report to him.
The primary operative decision-making body for the company is the Nokia Group
Leadership Team. The Group Leadership Team is responsible for Group level matters,
including the company strategy and overall business portfolio.
Background History of Nokia
Nokia has a long history of successful change and innovation, adapting to shifts in
markets and technologies. From its humble beginning with one paper mill, the company has
participated in many sectors over time: cables, paper products, tires, rubber boots, consumer
and industrial electronics, plastics, chemicals, telecommunications infrastructure and more.
Most recently, of Nokia has been best known for its revolutionary wireless communication
technologies, which have connected billions, people through networks and mobile phones.
Nokia’s history dates back to 1865, when mining engineer Fredrik Idestam set up his
first wood pulp mill at the Tammerkoski Rapids in Southwestern Finland. A few years later he
opened a second mill on the banks of the Nokianvirta river, inspiring him to name his
company Nokia Ab in 1871.
In 1967, It took its current form as Nokia Corporation as a result of the merger of
Idestam’s Nokia AB, Finnish Rubber Works, a manufacturer of rubber boots, tires and other
rubber products founded in 1898, and Finnish Cable Works Ltd, a manufacturer of telephone
and power cables founded in 1912. The new Nokia Corporation had five businesses: rubber,
cable, forestry, electronics and power generation.
Nokia first entered the telecommunications equipment market in 1960 when an
electronics department was established at Finnish Cable Works to concentrate on the
production of radio-transmission equipment. Regulatory and technological reforms have
played a role in our success. Deregulation of the European telecommunications industries
since the late 1980s has stimulated competition and boosted customer demand.
In 1982, when Nokia introduced the first fully-digital local telephone exchange in
Europe, and, in the same year, the world’s first car phone for the Nordic Mobile Telephone
analog standard. The technological breakthrough of GSM, which made more efficient use of
frequencies and had greater capacity in addition to high-quality sound, was followed by the
European resolution in 1987 to adopt GSM as the European digital standard by July 1, 1991.
The first GSM call was made with a Nokia phone over the Nokia-built network of a Finnish
operator called Radiolinja in 1991, and in the same year Nokia won contracts to supply GSM
networks in other European countries.
In the early 1990s, it made a strategic decision to make telecommunications its core
business, with the goal of establishing leadership in every major global market. Basic industry
and non-telecommunications operations—including paper, personal computer, rubber,
footwear, chemicals, power plant, cable, aluminum and television businesses—were divested
between 1989 and 1996. By 1998, Nokia was the world leader in mobile phones, a position it
enjoyed for more than a decade.
In 2006, Nokia, which had already been investing in its mapping capabilities for many
years, acquired Gate5, a mapping software specialist, and then in 2008 NAVTEQ, the US-
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based maker of digital mapping and navigational software. Today, Nokia offers leading
location services through the HERE business and brand, launched in 2012.
In 2007, Nokia combined its telecoms infrastructure operations with those of Siemens to
form a joint venture named Nokia Siemens Networks. NSN has become a leading global
provider of telecommunications infrastructure, with a focus on offering innovative mobile
broadband technology and services.
In 2011, Nokia joined forces with Microsoft to strengthen its position in the highly
competitive Smartphone market. Nokia adopted the Windows Phone operating system for
smart devices and through their strategic partnership Nokia and Microsoft set about
establishing an alternative ecosystem to rival iOS and Android. In 2011, Nokia also started to
make a number of changes to its operations and company culture that would in the course of
the next two years lead to shortened product development times, improved product quality and
better responsiveness to market demand.
In 2013, Nokia moved to reinvent itself with two transformative transactions. The first
was the purchase of Siemens’ stake in NSN, which was nearing the end of a deep restructuring
and remarkable transformation. The second was the announcement of the sale of substantially
all of Nokia’s Devices & Services business to Microsoft. The Microsoft transaction was
originally announced on September 3, 2013 and was completed on April 25, 2014.
Following the closing of the transaction, Nokia announced its new vision and strategy,
building on its three strong businesses; Nokia Networks, HERE, and Nokia Technologies.
History of Nokia operations in India
December 1, 2004
Nokia announces its decision to set up a plant in India. Till then, it used to import all
handsets sold in India from China.
April 6, 2005
Nokia signs MoU with Tamil Nadu to set up the plant in Sriperumbudur Special
Economic Zone (SEZ). It invited seven of its ecosystem partners to invest. Nokia initially
committed to an investment of about $150 million for five years. Its cumulative investment
grew up to $300 million
January 2, 2006
Sriperumbudur plant starts commercial production of handsets with 550 people. Nokia
first equipment vendor to manufacture both mobile devices and network infrastructure
equipment in India
March 11, 2006
Sriperumbudur facility inaugurated by Finland Prime Minister. Factory starts with low
and mid-range GSM handsets, which includes the Nokia 1100 model. Jorma Ollila, chairman
and CEO also present. Sale crosses one million mark in the same month.
June 2009
Sriperumbdur factory has edged past China as a unit-wise volume producer of Nokia
cellphones and becomes Nokia's largest cell phone manufacturing facility in the world.
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May 1, 2010
Nokia crosses 250 million handset mark and starts exports to North America and
Europe.
May 5, 2011
Production crosses 500 million handsets, marking a significant milestone for Nokia's
manufacturing operations in India and globally. The milestone was achieved in five years of
its operations, marking Chennai's ramp-up among the fastest globally.
End of March 2014
Plant's cumulative production was 800 million handsets. Exports worth more than $2
billion a year. Nokia India's overall turnover totaled Rs 151,000 crore between 2005/06 and
2011/12.
In its prime days, the Sriperumpudur plant was one of its biggest handset manufacturing
facilities, producing over three lakh handsets a day.At its peak, the Nokia factory employed
around 8,000 people directly and another 25,000 indirectly.But ever since its tussle with the
income-tax authorities for non-payment of dues of Rs 21,000-crore to the centre and Rs 2,400-
crore to the state and the Microsoft take-over deal of Nokia's hand set business, the company
has been pruning its workforce. Microsoft made it absolutely clear it was not interested in
fighting the tax department in India and hence decided to leave the Chennai plant out of the
deal.
GO, Get Nokia
It was all very different on December 1, 2004 when Nokia first announced its decision to
set up a plant in India. Till then, it used to import all handsets sold in India from China. "India
was doing about a million phones a month at the time," says a former Nokia executive who
does not want to be named. "Nokia wondered how it could make this a six to seven million a
month market. The answer was local manufacturing." An Indian facility meant lower logistics
costs, less time to hit the market, more flexibility. No longer would executives have to get in
touch with the China factories for small design changes which took nearly three weeks to be
executed and products shipped. When Nokia revealed it was scouting for a manufacturing
destination in India, many state governments - Haryana, Andhra Pradesh, Uttarakhand,
Karnataka and Maharashtra, along with Tamil Nadu - competed to woo it.
In 2004, when Nokia first announced that it was scouting for a manufacturing plant in
India, Tamil Nadu's then chief minister J Jayalalithaa was the first to ask her babus to 'Go get
Nokia', but 10 years later when the same plant is shutting down, the ruling All
India Anna Dravida Munnetra Kazhagam has remained mum on the issue. Nokia was then the
world's largest mobile phone maker. Tamil Nadu moved the fastest and won the race. Chief
Minister J. Jayalalithaa saw the news clippings and is said to have commanded her babus:
"Go, get Nokia." Within two days of Nokia's announcement, Tamil Nadu officials were in
Delhi, making a presentation before its executives. Sure, Tamil Nadu's alacrity was not the
only reason it won. Sabyasachi Patra, who handled Nokia India's relations with the
government between 2005 and 2011, explains why Sriperumbudur was finally chosen. "Quick
access to an international airport was an important condition since phones are low value, high
volume products," he says. "Chennai airport was only 33 km away." Uttarakhand and Andhra
Pradesh promised to build international airports, but no one in Nokia believed either would be
INCON - XI 2016 119

able to do so quickly. (Hyderabad did not have its new airport then; that happened only in
2008.) Maharashtra lost out because of traffic congestion in Mumbai and Karnataka, due to
Bangalore's poor infrastructure. But Patra acknowledges the Tamil Nadu bureaucrats' role.
"They made a good presentation," he says. "That kind of dialogue was not happening
elsewhere." Just what kind? One of the bureaucrats involved in the discussions throws some
light.
"We understand the mind of investors," he says. "Never say 'No problem' to them. That
sort of smugness plants doubts." It also helped that the leading political parties of the state
united to welcome Nokia.
"The reason Tamil Nadu got the plant was the strange, combined support of both
Dayanidhi Maran of the DMK (Minister of Communications and IT at the Centre at the time),
Jayalalithaa of the AIADMK who was chief minister, and the Congress which led the ruling
coalition at the Centre. It had everybody's blessings," the former Nokia executive says.
Nokia signed a memorandum of understanding with the Tamil Nadu government on
April 6, 2005, to set up the plant in the Sriperumbudur Special Economic Zone (SEZ). It
invited seven of its ecosystem partners to invest. Production started in 2006.
Tax Net
 January 8, 2013: Income Tax Department inspects the Chennai factory
 March 21, 2013: IT Department issues a Rs 2080 crore tax demand, later rectifies to
Rs 2,649 crore on Nokia Later matter moved to Court.
 February 2014: Tamil Nadu sends Rs 2,400 crore sales tax notice
April 2014: Nokia completes the sale of Devices & Services business to Microsoft
globally, excluding Chennai factory which was frozen by IT Department. Company
announces VRS to employees
 October 6, 2014: Company says that from November 1. 2014. it will suspend operations
at Sriperumbdur as Microsoft is ending its sourcing agreement with Nokia
In a separate tax case, the Supreme Court had ordered Nokia India on March 14 to give a
Rs 3,500 crore guarantee before it transfers the plant to Microsoft. As a consequence, Nokia
entered into a transitional services agreement with Microsoft to address their immediate
production needs and keep the factory operational."Unfortunately, the continuing asset freeze
imposed by the tax department prevented Nokia from exploring potential opportunities for the
transfer of the factory to a successor to support the long term viability of the established, fully
functional electronics manufacturing ecosystem,"
What triggered to shutdown
The mothballed Sriperumbudur plant of Nokia, once the world's single largest mobile
phone-making unit, may be sold in parts. The Finnish company has appointed Hilco, a global
leader in handling distressed investment and assets, to take over the machinery and hard
utilities. Hilco officials undertook a due diligence at factory last Friday. Nokia suspended
production at the facility from November 1. "They did a complete assessment of the plant and
its machinery," sources said. While the value of machinery lying idle inside the plant is not
known, sources said that it could be worth close to 54 million euro, including hard utilities like
continuous process unit, generators, capacitors, chilling plant and others. "The decision to sell
the plant in parts was taken by Nokia as take over the plant by a buyer appears remote due to
INCON - XI 2016 120

obsolete machinery and technology. Today, nobody makes Nokia phones and therefore the
scope for someone to buy the plant appears remote," sources said.
The factory, assets of which were frozen by the tax authorities, will move to Central
Board of Direct Taxes as Nokia had only an operating license after the tahsildar of
Kancheepuram attached it due to non-payment of taxes, as ordered by CBDT. For any
transactions at the plant, the courts must defreeze the assets. In a global transaction, Nokia
announced its sale of handset business, including its Sriperumbudur plant, to Microsoft for 5.4
billion euro last year. The deal deadline of March 31 was extended to April 2014. Several
cases and tax disputes surfaced after the deal with Microsoft was announced, and the
Sriperumbudur plant was left out of the deal. Nokia ran the plant as a contract manufacturer
for Microsoft for one year.
Tax authorities say Nokia violated several tax laws, including transfer pricing laws and
permanent establishment liability, which if proven will result in a tax charge in excess of Rs
21,000 crore on the Finnish company. "As of now, the tax authorities have issued demands for
Rs 3,080 crore. Of this, Nokia was directed to pay Rs 500 crore by the Delhi high court which
the company has paid," sources said. With Nokia shutting down the plant, its key component
supplier Foxconn too has announced suspension of production from December 24. Along with
half a dozen component suppliers, the Nokia SEZ in Sriperumbudur, 40km from Chennai,
became a source of employment for more than 31,000 persons directly and countless scores
through indirect jobs. Only Salcomp and Light-On-Mobile continue operations inside the SEZ,
with Salcomp employing nearly 3,000 persons directly while Ligh-on-Mobile employs around
290 workers.
Nokia’s decision to suspend production in India left many wondering what triggered the
move, as the company had earlier said its factory in Sriperumbudur was among its most
productive globally. While the tax holiday for the factory coming to an end might be a factor,
many say the business model of Microsoft (which acquired Nokia’s handset division last
year), as well as freebies offered by the Vietnamese government, might also have played a
role.
Responding to a detailed questionnaire sent by Business Standard, Microsoft said, “As
part of Microsoft’s mobile devices strategy announced in July, we are in the process of
realigning our manufacturing operations. As such, we have determined we no longer require
the manufacturing services of the Chennai factory and have informed Nokia we will end our
agreement on October 31.” The US firm said it would focus on the mass smartphone market.
“There is no future if you don’t have share. We will build scale and share. We will
unlock more products in the $100-200 price range to address the mass market,” Chakrapani
Gollapali, country general manager (consumer channels group) at Microsoft Corporation
India, had said earlier. The company’s “affordable” smartphones would hit the market in
three-four months, he added. Currently, the company has one product in this category — the
Nokia Lumia 520.
HR Issues at Nokia
Chennai:
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The plant's shutdown has rendered over 8,000 workers jobless. The major step was taken
after global software major Microsoft, which acquired the Finland-based Nokia's global
devices and services business, including assets in India for $7.2 billion.
While both DMK and AIDMK welcomed Nokia with a red carpet when it decided to set
up shop in Sriperumbudur, both parties have done little except stage protests to oppose Nokia's
decision to suspend production.Nokia shuts Chennai factory (Black Friday for workers).
Workers fret over future, over 30,000 people affected. With Nokia deciding to suspend
operations, trade unions as well as political parties have asked the government to take over the
factory to protect the livelihood of thousands of workers. While the ruling party in Tamil
Nadu, the All India Anna Dravida Munnetra Kazhagam, has not reacted to the decision, its
main rival Dravida Munnetra Kazhagam and some other political parties have staged protests
against the Nokia management's decision to suspend operations at the Sriperumbudur factory.
A Soundararajan, general secretary of Centre of Trade Unions (CITU) and a sitting member of
the Tamil Nadu legislative Assembly said the CITU has asked the state and Centre
governments to take over the factory. Nokia India Employees Union, which claims to have the
backing of workers at the factory, is backed by CITU. Earlier, in order to protect the interests
of workers at Neyveli Lignite Corporation, a Centre government-run company, the Tamil
Nadu government had come forward to acquire a five per cent stake in the company, which the
Centre was planning to dilute to outsiders. Similarly, the state government or the Centre
should take over the Sriperumbudur factory, taking thousands of Nokia workers' livelihoods
into consideration, Soundararajan said. He said the factory can manufacture mobile phones,
laptops and set-up boxes. So, if the government can convince customers such as Microsoft and
others, orders will start flowing to the factory, he noted. The major reason given by Nokia for
suspending operations at the Sriperumbudur plant is a lack of orders, especially after
Microsoft decided to stop sourcing from the plant. "On October 19 or 20, we will be meeting
the Union commerce minister Nirmala Sitharaman in Delhi with the same set of demands," he
added.
A similar demand was also raised by the Pattali Makkal Katchi, which joined hands with the
Bharatiya Janata Party in the 2014 Lok Sabha Election. In the factory, workers said Friday was
the last day as far as production was concerned.
The SC decision came as a shock to Nokia employees in the Chennai plant. M Saravana
Kumar, president, Nokia India Thozhilalar Sangham, said, "We thought the court will take our
jobs and livelihood into account. We approached the Delhi high court and Supreme Court with
this hope. We are worried about our jobs."Union officials are planning to meet A
Soundararajan, general secretary of the Tamil Nadu unit of the Centre of Indian Trade
Unions and a member of the Tamil Nadu Assembly. The fate of the plant remains uncertain, as
the deadline for the transfer of the asset to Microsoft will end on March 31. Nokia had said if
the asset was not transferred, they didn't have a choice but to opt for contract manufacturing,
which workers were not willing to accept.
"We can confirm that constructive discussions with union representatives and the labour
commissioner have resulted in an agreement on a financial package for Chennai factory
personnel," the spokesperson said in a statement a day after a tripartite meeting here between
company officials, union members and the top labour officer. At the time of closing down the
operations, about 1,100 employees were working in the plant, including 900 on the assembly
lines.
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With the month-long voluntary retirement scheme (VRS) announced by Nokia India
coming to an end on Wednesday May 15, 2014, 5,000 employees of the mobile handset
facility in Sriperumbudur near here have opted for it. Another 400 are expected to opt for
VRS. This could be one of largest VRS offered by any company in India in recent times, said
sources. The factory directly employs 6,700. A little over 60 per cent are women. Nokia
India said, "While we set no target for the VRS in terms of employees, 5,000 have opted for
it." Workers who had not opted for VRS asked, "With the balance 1,700 workers, how will the
factory be run?" The company said, "Nokia intends to respect commitments under the services
contract". Workers said many had queued at the office to opt for VRS on Wednesday.
The union has demanded a withdrawal of VRS.
On those opting for VRS, sources said workers in the facility for five years or more
(some have been for eight) would get compensation that would include 15-month salary (each
year of experience would be three months). Those with less than five years would be
compensated on a similar basis. A worker would get Rs 1 lakh each as compensation and
double the daily salary for the earned leave surrendered. To support those that have taken up
VRS, the company has introduced a bridge initiative. It is offering banking consultancy
services and employment outlook training. It is introducing initiatives under the bridge.
These include working with experts to identify new employment areas, developing
suitable training and skilling employees, conducting awareness sessions to share information
on 30 skill development modules and employment outlook training schemes across sectors.
The company said, "The training programmes will be held over a period at 40 locations
in Tamil Nadu, including Chennai." It would certify employees on the skills learnt, invite
potential employers to facilitate placements and give limited grants to support entrepreneurial
or academic ambitions of those who have worked for six years or more.
Around 72 per cent of the Nokia plant's employees were women. Indeed, the job with
Nokia transformed the lives of many of the women, most of who were from poor families -
young high school pass outs taking up their first jobs. "We realized the importance of Nokia
not only from the narrow angle of employment generation but also through the change it
brought about in the employees' lives," Patra says.
Nokia workers lobby Commerce Minister Sitharaman's to prevent shutdown Union
Commerce Minister Nirmala Sitharaman said she will pursue the matter with the finance
ministry. October 21, 2014 Labour union representatives at the Nokia factory in
Sriperumbudur, 40 km from here, met Union commerce minister Nirmala Sitharaman on
Sunday to ensure it doesn’t close.
They have asked for central government takeover, if nothing else works. The minister
has said she’d take the matter up with the finance ministry. Nokia India has said it would
suspend operations from November 1. Around 6,000 jobs, direct plus indirect, are at stake.
A Soundararajan, MLA and head of the Nokia India Workers Union, said they’d also
met the industries and labour minister of Tamil Nadu. However, the state government was yet
to give a response.
"We are worried of the situation. The management is not giving us proper reply on the
fate of the factory or the job security of the workers," said Kumar. There are around 8,000
employees under direct employment in the facility where as around 21,000 are employed
indirectly for the company in Sriperumbudur. Meanwhile, sources inform that almost all the
over 700 trainees are resigning from the company, accepting the retirement option offered by
INCON - XI 2016 123

the company. According to the union sources, the package offered by the company for trainees
include three month gross salary along with Rs 2 lakh as compensation.
Nokia employees at Sriperumbudur to get severance package of Rs 7.5 lakh each. A
final settlement was reached for over 900 workers still employed at Nokia's phone
manufacturing unit in Sriperumbudur on Thursday, a day before the official closure of the
plant. The deal arrived at gives the staff a sum slightly higher than the amount of Rs 6 lakh
announced through a voluntary retirementscheme (VRS). A tripartite meeting between
the Nokia India Thozhilalar Sangam - the workers' union, the company management and the
labor commissioner's office concluded on Thursday, bringing about an amicable financial
settlement for the 912 employees and 28 clerical and contract staff remaining in the Nokia
unit.
Nokia India employees have sought Tamil Nadu Chief Minister Jayalalithaa's
intervention to resolve labour issues at the handset maker's factory in Chennai, requesting the
state government to take a "firm stand" in ensuring their job security.
In a letter to the Chief Minister, Nokia India Employees Union (Nokia India
Thozhilalargal Sangam) Honorary President A Soundararajan said the Voluntary Retirement
Scheme offered by the company should be "withdrawn", and the jobs shifted to other
manufacturing units be brought back to the Chennai plant, among the biggest of the Finland-
based company.
"The plant has been operating at Sriperumbudur near Chennai since 2005 and enjoying several
benefits offered by the state government since then. However, without intimating the
labourers, the State or Central government, the company was sold to Microsoft," said
Soundararajan, who is also a sitting MLA.
Questions
1) Did politicians cock a snook at Nokia staff? Why Job Security of about 30,000
employees (directly and indirectly employed) was simply not taken care of by central
and state government.
2) Why Nokia could not look at possibilities of taking the case to international courts?
3) Why Nokia Tamil Nadu factory could not be saved, though government had option of
running under public- private – partnership.
4) The rise and fall of Nokia's Sriperumbudur plant raises larger questions about India's
attractive-ness - or otherwise - as a manufacturing destination.
5) Given Nokia's experience, why would anyone set up an electronics plant in India when
China, Taiwan and some East European countries are established destinations?
References:
[1] http://ibnlive.in.com/news/nokia-shuts-down-its-india-plant-in-chennai-over-8000-
workers-lose-job/509825-7.html
[2] http://indianexpress.com/article/business/business-others/court-lifts-nokia-india-factory-
freeze-in-tax-dispute-paves-way-for-microsoft-deal/
[3] http://indianexpress.com/article/india/india-others/nokia-set-to-shut-down-chennai-
factory/#sthash.xOUjqkSp.dpuf
INCON - XI 2016 124

[4] http://www.firstpost.com/business/corporate-business/did-politicians-cock-a-snook-at-
nokia-staff chennai-plant-to-shut-today-1994935.html
[5] http://timesofindia.indiatimes.com/toireporter/author-Rajesh-Ch
[6] http://www.business-standard.com/search?type=news&q=
[7] http://www.business-standard.com/search?type=news&q=Unions
[8] http://www.business-standard.com/search?type=news&q=Citu
[9] http://timesofindia.indiatimes.com/topic/voluntary-retirement-scheme
[10] http://company.nokia.com/en/about-us/corporate-governance/nokia-group-leadership-
team
[11] http://gadgets.ndtv.com/nokia
[12] http://gadgets.ndtv.com/microsoft
[13] http://timesofindia.indiatimes.com/topic/Nokia-Chennai-plant
[14] http://zeenews.india.com/business/news/companies/last-day-of-work-at-nokia-chennai-
plant-to-shut-from-tomorrow_111015.html
[15] http://www.business-standard.com/article/companies/dri-visits-nokia-s-chennai-facility-
[16] http://indianexpress.com/article/business/business-others/court-lifts-nokia-india-factory-
freeze-in-tax-dispute-paves-way-for-microsoft-deal/#sthash.mtockaFy.dpuf

INCON - XI 2016 125

Talent Management: A Linking Pin To Employee Engagement

Ms. Gazal Yadav Ms. Deepti Sharma
Research Scholar, PACIFIC University Research Scholar, Rajasthan University
Udaipur ,India Jaipur (India)
Email: gazalyadav@gmail.com Email:deeptisharma121@gmail.com
ABSTRACT:
Employee engagement is a recent term which has been coined in year 1990.
Employee Engagement is endorsed to high involvement, passion and zeal in employees'
efforts to perform up to their potential, while creating high performing organizations.
When organizations are struggling to retain employees, employee engagement can be a
source of retaining talent or talent management. Talent is something, which is extremely
on demand these days. Talent management has gained very popularity due to high
competition in the market .This paper focuses on the current dire need of managing
talent in an organization, key strategies for them and the implications for the same. This
also focuses on talent management as a source of employee engagement. Talent
management will simply cover from the process of recruitment of talents, enhancing the
skills of existing workforce, encouraging and retaining the employees, enticing highly
talented and rated employees from other companies etc. Every Human resources
department in a company has practices for talent management. Getting talented
employees and even retaining them is a big challenge. Every organization is trying its
best to get competitive advantage, they can compete in terms of technology, money,
marketing but the real requirement is in talent management. This paper will highlight
the requisition for right talent in the organization and keys or ways which companies
can adopt to get the competitive advantage in the market and achieve its goals which
will help in developing engaged employees.
Key Words: Employee Engagement, Human Resource Management, Employee retention,
HR practices, HR strategies.
Introduction:
Talent is something, which is highly on demand. Eventually the term Talent
management has become very much popular, especially in today’s commercial world. Talent
management is simply a process of recruitment of talents, developing the skills of existing
workforce, promoting and retaining the employees, attracting highly talented and rated
employees from other companies. In a professional term, Talent Management was recognized
in late 1990s, which used to reflect as a process of evolving and developing the employees as
an extremely skillful worker for the company. It usually empowers organization to actively
support, inspire, and uphold a high-performance work team. It has a base with few basic
dimensions like development, retaining, motivating, empowering and managing. Today the
major challenge lies in the ability to attract employees and even to retain them for long. This
era is a time where organizations are competing on the basis of skilled employees as there are
no other constraint of money, technology and other resources except skilled employees. This
talent management strategy also helps to engage employees in an organization. High levels of
engagement in domestic and international firms promote retention of talent, foster customer
loyalty and improve organizational performance and stakeholder value.
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Employees need not to have only right required skills but also right attitude to perform
in an organization. As per the Society for Human Resource Management’s (SHRM) 2006
Talent Management Survey Report (SHRM, 2006), 53% of the organizations have precise
Talent Management initiatives in place and there has been gradual growth to 86% for large
organizations with 50 to 99 HR employees. Among these companies, 76% consider Talent
Management to be a top importance (Fegley, 2006).
Objectives of the paper:
 To present a basic concept of Talent management, its relevance in the organizations and
its link to employee engagement.
 To present different strategies for talent management in an organization to achieve
competitive advantage.
Talent Management and its relationship to Employee Engagement
Talent Management practices and policies that shows more commitment to human
resources outcome in more engaged employees and lower attrition rate. Employee
Engagement along with Talent Management can make or break the bottom line
(Lockwood,2006). According to a study by the Corporate Leadership Council (Driving
Performance and Retention through Employee Engagement, 2004), employees who are
devoted perform 20% better and are 87% less likely to resign. Employee engagement is an
ongoing process. Employee engagement helps in retaining talent in an organization. Efficient
Talent Management requires strong participatory Leadership, Organizational buy-in and
Employee Engagement (Lockwood,2006)
Engagement is much more than what people say as satisfaction. A satisfied employee is
happy with current pay, benefits and atmosphere. This contentment may cause hesitation to
show any extra initiative or achievement; thus, it creates a worker who is comfortable with the
statusquo. Alternatively, engaged employees demonstrate virtuous qualities like:
1. Passion for work
2. Innovation
3. Taking responsibility to make things happen
4. Authentic desire to make the company successful as well as the team
5. Having an emotional attachment for the Organization.
Literature Review:
Peter Cappelli (2008) insisted on bringing some changes in 21 century so as to retain
employees in an organization. When there was recession in India in year 2001, many
employees were laid off. People are talented but due to constrain the organization was not able
to keep those employees. Some other organization took benefit out of this as they got trained
and skilled employees. Certain innovative practices can be taken from operations. The four
tactics can be: Make and buy to manage risk, adapt to uncertainty in talent management,
Improve the return on investment in developing employees, preserve the investment by
balancing employee-employer interest.
Richard S. Wellins, Audrey B. Smith, Scott Erker (2011) insisted that organizations
have to get best talent in order to succeed in competitive world. Along with focus on the
recruitment part, they need to give emphasis on retention of the employees through different
retention strategies. There is direct relationship between talent and better business
performance.
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This will indeed give better value for the organization.
Source: Development Dimensions International

Madhuri Gupta, Kavita Aggarwal (2012) gave emphasis that for the organizations to
be successful they have to retain employees. The younger generation of today has
comparatively different expectations. There is dire need to understand the employees
expectations and craft policies and practices so that it fulfills them with their expectations and
as well able them to achieve organizational goals. People have variety of talent and now days
it is the organizations role to find right fit employees for a job. Even the organization has role
in developing the employees for their career enhancement. Working culture is very important
for the employees as they spend more time in office as compared to their home, this will help
in retention of the employees. More training need to be organized and last but not the least
they should develop trust among employees towards.
Ms. Kavya Singh, Ms. Shipra Sharma, Ms. Bhavna Garg (2012) said that for the
competition of the corporates in market, companies should focused and capable of managing
employees as critical resource. For this the employees need to be continuously trained and
developed. There is requirement of developing passion and vision for the employees. The skill
set required for the job has also changed very fast. There is requirement of continuous update
about the technology and other aspects for the employees. The talent management practices
should be continuously revised and monitored for the benefit of the organization. The
approach towards talent management should be imbibe in the culture of the company starting
form the recruitment part to retaining of the employees. Talent management practices and
policies needs to be designed for the employees according to the needs.
Talent Management Practices:
 Foresightedness and Awareness of current market situation: The leaders in an
organization should be aware of the future requirement that may prop up any time. They
should envision the future requirement and try to develop internal employees and even
the new recruits should be according to the future requirement of the organization.
 Align individual goals with organization strategy: There should be alignment of
individual goals with organizational strategy. When the employees are engage in their
INCON - XI 2016 128

work through goal alignment, there is a greater employee ownership in the company,
they become more committed will show better performance in the organization.
There should be goal sharing so that there are reduced chances of redundancy and
employees can better support each other. Goal sharing also helps different heads find
ways to support each other. With every employee working together toward the same
objectives, a company can execute strategy faster and with more flexibility and
adaptability
 Create Highly-Skilled Internal Talent Pools: This is an era where there is constant
change in technology, culture diversity etc. happens. So there is dire need of getting the
employees continuous improvement in their knowledge domain with technology and
even others. Their skills need to be developed with appropriate training sessions and
learning. There should be proper environment of learning from others and having
positive attitude towards development and undergoing desired change. A critical element
of a talent management program is the development of "talent pools" within a
company—a reliable and internal source of talent which can be used for succession
planning also. By cultivating talent pools in an organization we can ensure that we have
experiences and trained employees to support organization as and when required.
 Develop Collaboration: Communication is one such strong element if an organization
which keep all employees together. There should be proper communication among
different employees. For the organization to perform better the knowledge should be
shared and there should be two way communication so that a feeling of respect develops
among all employees. It is the responsibility of all the leaders to try their best to develop
plans to overcome the organizational silos which prevent the free flow of information
throughout the organization.
There should be culture of mutual supporting and cooperation among employees. To
drive better collaboration across is an organization; employees and management require
access to rich employee data, including experience, interests and special skills. Centrally
availability of the information drives greater success companywide. The managers will
be able to use the information to make appropriate decisions to increase business
performance.
 Mentoring: It is one of the vital practices of talent management, which helps in
elevating the overall progress of an employee, related to professional and personal front.
Mentoring will help the employees to gain an insight about the future requirements of an
organization and even it helps to solve their personal confusions.
 Create a Pay-for-Performance Culture: In a pay-for-performance culture, managers
have easy access to all the information they need to reward individuals for their actual
performance. The employees should be fairly given compensation based on their
performance in an organization. This will keep them motivated and will help to retain
them for long time. Fairness in an organization leads to greater job satisfaction,
improved morale and employee retention.
There are many ways to actually work for talent management strategy:
(a) Top leaders direction and support
(b) Assign people for talent management in an organization
(c) Auditing the key positions
(d) Finding future requirement
INCON - XI 2016 129

Source: Author’s Compilation

Conclusion:
Talent Management is an important element for organization to compete and to get
success. This time the most important for managing talent is to get Proper support for higher
authorities for the same. There should be right people who will look after strategy
development for talent management, right implementation of those strategies and
understanding future requirements of the market is the key to success . Effective talent
management calls for strong supportive leadership, good policies and practices, fairness in
system, talent management strategies and engagement of the employees. Companies that will
focus on talent management will be high position by the market and will have long term
growth for the years to come. Talent management will help in developing more engaged
employees. Employees can be engaged emotionally and cognitively. The former by forming
meaningful connections to others (for colleagues, co-workers) and cognitive includes
becoming aware of their mission and role in their work environment. Employee engagement
can be enhanced by creating good practices of talent management in an organization. Talent
management is a continuous journey or process, not a static business objective. Changing
dynamics of the market situation need to be considered for crafting talent management
strategies which will lead to more engaged employees and better organizational performance.
REFERENCES:
 Anita Weyland (2011), Engagement and Talent Management of Gen Y’, Journal of
Industrial and Commercial Training, Vol.43, No.7, pp 439-445.
 Ashton, C., Morton, L. (2005). Managing talent for competitive advantage. Taking a
systemic approach to talent management. Strategic HR Review, 4(5), 28-31.
 Berger, L.A., Berger, D.R. (2004). The talent management handbook. New York:
McGraw-Hill
 Cappelli, P. (2008). Talent management for the twenty-first century. Harvard business
review, 86(3), 74.
 Collings, D. G., & Mellahi, K. (2009). Strategic talent management: A review and
research agenda. Human Resource Management Review, 19(4), 304-313.
 ITESemployees: key to retention, Journal of Employee Relations, Vol.29, pp. 640-663
INCON - XI 2016 130

 JyotsnaBhatnagar (2007), Talent Management strategy of Employee Engagement in
Indian
 ITESemployees: key to retention, Journal of Employee Relations, Vol.29, pp. 640-663
 Kavya Singh, Ms. Shipra Sharma, Ms. Bhavna Garg(2012). Driving Forces and
Emerging Challenges in Talent Management A pathway to Organizational Success.
International Journal of Advanced Research in Computer Science and Software
Engineering 2012
 Madhuri Gupta, Kavita Aggarwal (2012). Talent management strategy:
 Richard, S. W., Audrey, B. S., & Scott, E. (2011). Nine best practices for effective talent
management. Development Dimensions International Inc. white paper available online
at http://www. ddiworld. com
 http://www.ijarcsse.com/docs/papers/June2012/Volume_2_issue_6/V2I600163.pdf
 http://www.successfactors.com/en_us/lp/articles/strategic-talent-management-
training.html
 https://www.ddiworld.com/DDIWorld/media/whitepapers/ninebestpracticetalentmanage
ment_wp_ddi.pdf

INCON - XI 2016 131

Quality of Work -life as Corporate Responsibility for Employee Satisfaction

Ms. Trupti Shelk Ms.Varsha Parab
Assistant Professor Assistant Professor
Institute of Management & Computer Studies Institute of Management & Computer Studies
truptishelke20@gmail.com varsha.imcost@gmail.com
ABSTRACT:
The concept of Quality work-life is not a new but with the changing pace of life
and increase in stress levels, negatively affecting the quality of work, has made many
organizations think about strategies for maintaining a work life balance. There is a
strong link between Quality of work life policies and reduced absenteeism, increased
productivity and job satisfaction. Other benefits include improves recruitment and
retention rates with associated cost savings, a reduced stress, greater levels of job
satisfaction and loyalty and improved corporate image. The Quality of work life strategy
offers a variety of ways to reduce stress levels and increase job satisfaction of the
employees. Motivated employees not only enhance the productivity but also help
creating a positive work environment at office. Quality of work life is nothing but an
approach which recognized the overall importance of the climate or culture. It has
become one of the most interesting studies now a days as it has its usefulness in
increasing the productivity as well as job of satisfaction of employees. It covers all
aspects of working life. It is a degree by which members of a work organization are able
to satisfy their personal needs. The focus of work life is towards creating human work
environment where employees work cooperatively and contribute to organizational
objectives. From management perspective it relates to variety of efforts to improve
productivity through improvements in human, rather than the capital. In India things
have changed drastically and every organization is having their own unique problem but
the need of an hour is to improve the Quality of Work life of employees so as to
organizations make a strong employee base and improves its productivity.
Keywords: Quality of work life, job performance, employee satisfaction, job security
Introduction
Views that how can Quality of work life be improved by involving employees more into
work where they will get job satisfaction & which will have an impact on organizational
outcomes.
Quality of Work Life refers to the level of satisfaction, motivation, involvement and
commitment individuals experience with respect to their lives at work. Quality of Work Life
is the degree to which individuals are able to satisfy their important personal needs while
employed by the firm. Companies interested in enhancing employees Quality of Work Life
generally try to instill in employees the feelings of security, equity, pride, internal democracy,
ownership, autonomy, responsibility and flexibility. They try to treat employees in a fair and
supportive manner, open communication channels at all levels, offer employees opportunities
to participate in decisions affecting them and empower them to carry on with their
assignments. It has also been associated with organizational changes aimed at increasing the
levels of job widening (greater horizontal task flexibility) and job enrichment (greater vertical
INCON - XI 2016 132

task flexibility including the taking on of new responsibilities including those formerly
undertaken by supervisory or managerial personnel). Herzberg (1959) in his theory has
identified both the motivators & hygiene factors which motivates an employee to be attached
with an organization. The focus is more on Motivators factors which is responsible for
improved Quality of Work life.
Today jobs are becoming more & more demanding, as organization become leaner and
business environment more competitive. Organizations are setting up policies for maintaining
a good quality of work life.
Objectives of Quality of Work Life:
 To increase in individual productivity, accountability and commitment.
 For better teamwork and communication.
 For improving the morale of employees.
 To reduce organizational stress.
 To improve relationships both on and off the job.
 To improve the safety working conditions.
 To provide adequate Human Resource Development Programs.
 To improve employee satisfaction.
 To strengthen workplace learning.
 To better manage on-going change and transition.
 To participate in management at all levels in shaping the organization.
Importance of Quality of Work Life:
Improved Quality of Work Life was not considered as important factor in India until
recently as there were important impending factors like resource deficiency, environmental
threats and some services of financial problems.
Quality of Work Life program has become important in work place for the following
reasons:
1. Increase demands at work
2. Loss of long term employee guarantees
3. The need for enhanced work place skills
4. Greater competition for talent
5. Increased women in work force
Good quality of Work Life leads to an atmosphere of good impersonal relations and
highly motivated employees who strive for their development. Though monetary benefits still
occupy the first place in the cost of elements like physical working conditions, job
restructuring and job re-designing, career development, promotional opportunities etc. are
gaining importance rapidly. As such, workers expect the management to improve all these
facilities which thereby improve Quality of Work life. If provided with good Quality of Work
Life, employees concentrate more on both individual as well as group development which in
turn leads to overall development.
Literature Review
The concept of Quality of Work life can be traced back to the last century in the work of
Walton (1973) where he found that in early 20th century, legislation related to employees was
INCON - XI 2016 133
enacted to protect employees from job injury and to eliminate hazardous working conditions
on the one hand and beginning of unionization movement on the other. This means employers
concern was related to protection of the employees. It was in the 70’s that the idea of Quality
of work-life was conceived. It was quite broader in sense and scope that these earlier
developments. Human values, their needs and aspirations are the heart of Quality of work life.
Motivation theories by Maslow’s and Herzberg also gave an insight towards Quality of
work life. Abraham Maslow (1954) in his book Motivation and Personality classified all
human needs into five categories & arranged them in a hierarchy. The theory says that
whatever level of needs may be motivating the person at given phase of life there will always
be satisfaction & dissatisfaction among individuals.
Like above mentioned theories the theories of equity, goal setting, reinforcement etc,
relate more to work motivation. Quality of work life is an attitude of an employee towards job
which is very well related to work motivation.
Various other theorists like Hackman and Suttle (1977) describe Qualtiy of wok life
from varied view points. It means industrial democracy, increased worker participation in
corporate decision making or a culmination of the goals of human relations. In terms of the
management perspective, it relates to a variety of efforts to improve productivity through
improvements in human matter rather than the capital or technological inputs of production.
Thus it is clear that Quality of work life is related to job satisfaction.
(a) Job Satisfaction
(b) Humanizing the work
Quality of work life is determined by the interaction of personal and situational factors.
It implies that the basic strategy for improving Quality of work life is first to identify and then
try to satisfy people’s important needs, through their experience in their work environments.
There are many factors which lead to satisfaction and dissatisfaction of employees.
Some of the important factors are
(a) Work itself
(b) Pay
(c) Promotion opportunities
(d) Supervision
(e) Co-worker
Another factor of job satisfaction is working condition. Today with the advancement of
technology the nature of work is changing, Now with quality of work life becoming a major
societal issue of challenge throughout the world , Job design has become a prime concern of
HRM. Quality of work life is nothing but an approach which recognized the overall
importance of the climate or culture of organization. It was Adam Smith in his book Wealth of
Nations where he mentioned that human resource is not only a resource but capital which has
the capacity to give better return in long run to the organization. He was absolutely correct in
his approach as we are realizing now how organizations have turnaround their employees.
Companies now a days do not want to loose their valuable employees they want to retain
them. This is another beneficial approach of Quality of work life towards retention of
employees.
INCON - XI 2016 134

As defined by Fisher Shaw (2008) “ The Quality of work life area includes a host of
issues like occupational safety and health, job training, educational opportunities,social and
recreational facilities and child care.”
Studies by business institutes also support the links between ethics and a company’s
benefits. For example a survey of the Aspen Institute (2003) indicated that companies
committed to corporate social responsibility can benefit both organization and employees. The
benefits include a better public image and reputation, greater customer loyalty a more satisfied
and productive workforce, and fewer regulatory or legal problems.
Health and Safety needs were pointed out by Shaw (2005) as significant moral concerns
in the workplace. He also argued that the success of QWL programs and other work place
reform efforts depends on the ability of the organization to reinforce high levels of trust.
Consistently, the research by LRN (2006) revealed the links between a company’s
ability to foster an ethical corporate culture and an increased ability to attract, retain and
ensure productivity among employees.
In recent years, ethics, quality of work life (QWL) and job satisfaction are increasingly
being identified as progressive indicators related to the function and sustainability of business
organizations.
QWL has a direct impact on employees job related outcomes. Based on our literature
review, there have been many studies on the relationship between QWL and organizational
productivity or performance.
Conclusion The above discussion has helped me to conclude that the identification of the
measures of quality of life is indeed a difficult task, though there is a sort of common
agreement on its concept of employee well-being. Evidently there are objective (physical and
structural design) factors that provide work place setting and intervening policy factors that
affect work processes of employees. As regards the outcome factors the immediate effects on
psychology of employees (positive attitudes, commitment, and satisfaction) and ultimate
effects on performance of organization are being considered by researchers. Finally it is very
true to say that high degree of QWL leads to job satisfaction which ultimately results in
effective and efficient performance.
REFERENCES:
[1] Robbins, S.P. Organizational Behavior: Concepts, Controversies, and Applications,
Prentice-Hall, Englewood Cliffs,
[2] Benium, Hans Van, ‘Coming to terms with QWL’
[3] Efraty D, Sirgy JM The effects of working life (QWL) on employees behavioral
responses.
[4] Galinsky E,Stein, “The impact of human resource policies on employees: balancing
work/family life”
[5] Herzberg (1959) “The motivation to work”
[6] LRN New research reveals business impact of ethics.
[7] Luthans Fred, Organizational Behavior, McGraw Hill
[8] Maslow’s Abraham (1954) “Motivation and Personality”
[9] Shaw and Fisher “Human Resource Management”

INCON - XI 2016 135

To Study M-HRM (Mobile Human Resource Management)

Practices and its Impact on Workforce through Smart Phones in Selected
Information Technology (IT) Multinational Corporations (MNC’S) in Pune
Region
Mrs. Swapna Anand Saoji Dr. Milind Pande
Assistant Professor Director MITSOT Pune
MIT School of Management, Pune (India) Ph. D. Wireless Technology,
Sr. No. 123, Paud Road, Kothrud, Pune Ph. D. Business Management,
411038 (India) Post-Doctorate in Telecom Technology
swapnasaoji@gmail.com Transfer
ABSTRACT:
Introduction: The Human Resources department has become more strategic within
top-performing organizations. M-HRM is the recent trend in the field of Human
Resource Management. The fact is, today’s anytime-anywhere mobile access is changing
the way we do business. With the right apps, HR can manage IR, customer relations,
access sales performance data, and even can govern from their mobile devices. Human
resources technology developers have jumped on the mobile bandwagon, and are
working hard to bring new solutions for hiring, managing and tracking HR through the
smart cell phones of small- medium-Large sized business organizations. Enterprise
mobility applications can enable HR to champion and support employee engagement
and efficiency while presenting the basic benefits offered by mobile technologies.
Furthermore, as technology progresses and becomes more ingrained in day-to-day
life, both employees and managers will begin to expect the same instant access to
information and flexibility from their employers. Human Resources has a great
opportunity to improve engagement and productivity of its workers by providing
targeted, action-packed mobile applications that will make them giddy with excitement.
Purpose (Objectives): The research is carried out with the objectives to study the
changing trend of use of smart phones to manage HR, to understand current scenario of
mobile human resource management, to find out and study the core functions of HR
where mobile applications are in use and can be further expand its use in future, to
Study the impact of gadget on advantages and disadvantages of increased use of smart
phones in the field of HRM.
Design / Research Approach / Methodology: Primary and secondary data
collected. The research design was both structured as well exploratory as it was carried
out in unstructured pattern. It had a focus on discovery of significant variables; and
there will be an analysis of insight stimulating cases. Extensive literature review had
been done with academic journals, industry portals, referring and monitoring the
industry news and developments etc.
Findings and conclusions: The paper reports findings on the recent trend of use of
smart phones in managing and governing human resources efficiently, the mobile
applications that are currently in use as a current trends, and the utility of mobile
INCON - XI 2016 136

applications in HR functions along with the pros and cons of MHRM. The mobile
technology is growing rapidly, and there are new solutions emerging all the time.
The future perspective of the utility of M- HRM as technology changes rapidly and
we need to implement change management. Balance between Work and Life can be
possible as connected 24/7 with the organization as well family front can be managed
properly.
Research Limitations : Scope of Study is restricted to IT companies in Pune city /
region. As Pune being prominent IT hub the study is restricted to MNC’s .
Key Words: MHRM, Acquisition, Retention, Employee Engagement, HR Applications,
Change Management.
I. Introduction
The mobile workforce globally exceeded three billion in 2014 and is projected to grow
by greater than 30% over the next several years. With this anticipated growth comes an
enormous opportunity for human resource management at many companies to help improve
the productivity and satisfaction of its mobile workforce through mobile HR solutions. ADP’s
survey of 400 large and midsized U.S. organizations reveals early success from those who
have deployed mobile HR apps. The Objective of the paper to see what is driving success for
early adopters and what these firms expect next from their investment in mobile HR solutions
from their employees.
The mobile population globally is expected to continue growing over the long- and
short-term and, although current deployment levels are still relatively low, there is a clear
trend within midsized and large companies to engage more employees through mobile HR
solutions. This trend is reflected in the results that ADP and VDC reported in their survey of
400 midsized and large firms concerning their use of mobile HR applications. Moreover,
employers are beginning to see real value in allowing their employees to access payroll and
HR data through their mobile devices, like time-saving applications such as online approval of
work schedules and completing expense reports from wherever they are and working smoothly
effectively.
The Human Resources department has become more strategic within top-performing
organizations. M-HRM is the recent trend in the field of Human Resource Management. The
fact is, today’s anytime-anywhere mobile access is changing the way we do business and
getting it done by the employees. With the right apps, HR can manage IR, customer relations,
access sales performance data, and even can govern from their mobile devices. Human
resources technology developers have jumped on the mobile bandwagon, and are working
hard to bring new solutions for hiring, managing and tracking HR through the smart cell
phones of small- medium-Large sized business organizations. Enterprise mobility applications
can enable HR to champion and support employee engagement and efficiency while
presenting the basic benefits offered by mobile technologies.
Furthermore, as technology progresses and becomes more ingrained in day-to-day life,
both employees and HR managers will begin to expect the same instant access to information
and flexibility from their employers. Human Resources has a great opportunity to improve
engagement and productivity of its workers by providing targeted, action-packed mobile
applications that will make them giddy with excitement.
INCON - XI 2016 137

II. Need of the Study (Relevance of the Study)
As technology has became part of life its became empirical from our part to study How
can Technology connects with the business of HR. How MHRM improves employee
engagement and productivity by providing targeted mobile application. Even due to 24/7
mobile connectivity its easier to work from anywhere to the employees and at the same time
its became irritation for them to attend the queries and work as per the instructions of HR.
a. Does technology really help for smooth communication between HR and the Employees
b. Does it improves employee engagement and productivity by providing targeted mobile
applications
c. To understand advantages and disadvantages of M-HRM in IT Companies
d. “From Talent Acquisition to Retaintion (Attrition): How can Technology connect with
the business of HR?”
e. HR Technology advances – will take away the human element are these Innovative HR
Efficient Processes Or Irritation Through Smart Phones
III. Literature Review
The roots of MHRM were actually aligned with the phase when the pagers were used to
convey the business activity and status information in the year 1998. The HR and the
employees were taking it as a help to foster their work activities and easy to give its feedback.
Then in the year 2000 mobiles were introduced which were more prompt and effective in its
services, but even incoming calls were charged at that time. Only the high society / high
importance business people/ huge work load people only used to utilize it. This was the actual
scenario. Due to its easy information communication the need grew up and now the mobiles
are affordable to the common man. Comman man now does the business and personal
communication with the help of it.
More companies are seeing value in allowing their employees to access payroll and HR
data using their smartphones, tablets, or other mobile devices. According to the ADP survey,
43% of midsized companies and over half of large organizations allow mobile device usage
for these purposes. Between 2009 and 2014, usage has grown in both the midsized and large
segments and the trend continues upward.
Saeed Kazmi, Chairman & CEO, Vertical Systems, Inc. adds up as Mobile Technology:
The Revolution In Human Resource Management
A recent mobile recruitment survey by Simply Hired (2013 Mobile Recruiting Outlook)
shows 80 per cent of active job seekers are currently using their mobile devices to search for
jobs. Against that a mere 14 per cent of employers have a mobile version for their career site
while even less than 7 per cent have a mobile 'direct job apply'.
It is certainly time for HR recruitment systems/career to focus on a 'mobile-first' strategy. It is
time for smart mobile apps with personalised interfaces for managers, candidates, recruiters
that are as easy to use as, say, Google Maps.
IV. Significance of the study

This study is mainly intended at the in depth analysis of M-HRM implementations :
Personal use of smartphones is growing exponentially and there is an ever-greater use of
tablets by consumers. Consumer-driven use of these tech devices is shaping up as a benefit for
businesses, including those in charge of human resource management. Among businesses
INCON - XI 2016 138

surveyed by ADP, over 70% of midsized organizations and 90% of large firms have either
deployed smartphones, are supporting employee-owned smartphones, or plan to either deploy
or evaluate future deployment of these devices due to its huge benefits.
a. This study will help IT Companies to find out the impact of using M-HRM in IT
Companies in Pune region whether M-HRM making human resource management more
efficient and more profitable or raising their stress and making work life manageable or
difficult adding with accelerate workflows with informative alerts and notifications with
feedbacks.
b. Enterprise mobility applications can enable HR to support employee engagement and
efficiency while presenting the basic benefits offered by mobile technologies.
c. It empower workers to do their jobs whenever, wherever, on any Smart Phone device.
d. It delivers the insight people need to make better decisions in the moment
e. Create innovative HR processes by using native / available device capabilities, including
location awareness
f. Increase the adoption of HR processes to maximize the value of your back-end systems
IV. Scope of Study
1. Scope of Study is restricted to IT companies in Pune city / region.
2. As Pune being prominent IT hub the study is restricted to MNC’s .
V. Objectives of the Study
1. To study and identify the utility and impact of M-HRM along with Finding Out Reasons
/ Factors Responsible For M-HRM implementation In Selected Information Technology
(IT) Multinational Corporations (MNC’s) in Pune Region
2. To find out co-relation between implementing M-HRM and employee productivity,
smooth co-ordination along with benefits of M-HRM proactive activities to reduce
mismanagement.
3. To understand advantages and disadvantages of M-HRM in IT Companies
4. To study whether M-HRM making human resource management more efficient and
more profitable or raising their stress and making work life manageable or difficult
adding with accelerate workflows with informative alerts and notifications with
feedbacks.
VI. Hypothesis
To study the objectives and to confirm it, the following hypothesis have been made :
H0- There is no co-relation between utility and impact of M-HRM along with no significant
difference between Reasons and Factors Responsible For M-HRM which creates no
innovative HR efficient processes or any irritation In Selected Information Technology
(IT) Multinational Corporations (MNC’s) in Pune Region
H1- There is co-relation between utility and impact of M-HRM along with significant
difference between Reasons and Factors Responsible For M-HRM which creates
innovative HR efficient processes or irritation In Selected Information Technology (IT)
Multinational Corporations (MNC’s) in Pune Region
H0- There is no co-relation between MHRM proactive activities and reduces mismanagement
resulting into employee productivity and smooth co-ordination
INCON - XI 2016 139

H1- There is co-relation between MHRM proactive activities and reduces mismanagement
H0- There is no significant co-relation between effectiveness to maintain work life balance
and not raising personal life stress adding, with accelerate workflows with informative
alerts and notifications along with feedbacks.
H1- There is significant co-relation between effectiveness to maintain work life balance and
raising personal life stress adding, with accelerate workflows with informative alerts and
notifications along with feedbacks.
VII. Limitations of the Study
1. Research is restricted to Pune region, limiting the geographical accessibility.
2. Technical issues regarding security (of confidential information) issues will not be
addressed.
VIII. Research Methodology
Research Design:
Primary and Secondary data collected. The research design was both exploratory and
descriptive focused on discovery of significant variables and there will be an analysis of
insights stimulation cases.
Sampling Design:
Population: IT MNC’s in Pune Region as per Confederation of Indian Industries (CII)
list of MNC’S in Pune Region.
Sample Size: 30% of IT MNC’s in Pune region.
Sampling Method: Non probability-Convenience sampling
IX. Sources of Data Collection
Primary data:
I. Questionnaire: Primary data is collected from the structured questionnaire.
II. Data analysis is be based on data collected with relevance with secondary data.
III. Scheduled Interview: HRM executives which helped to understand the MHRM
perspective on IT Companies
IV. Telephonic Interview: Appointment were be taken and interviews conducted through
telephonic conversation.
V. Target sample: IT Companies HRM manager as well as Employees.
Secondary Data
Secondary Data been collected through various sources like:
I] Internet II] Books
III] Magazines and Journals IV] News Papers
X. Organizations which provides MHRM Software’s:
MOBILE ACCESS: EBSCOhost is optimised for mobile use and has an iPhone/iPad and
Android app available.
XI. Data Analysis
INCON - XI 2016 140

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CON - XI
X 20
2 16 14
41
H1- There is co-relation between utility and impact of M-HRM along with significant
difference between Reasons and Factors Responsible For M-HRM which creates
innovative HR efficient processes and comparatively little irritation
a. 81% of large and 76% of midsized organizations report improved workforce satisfaction
b. 78% of large and 73% of midsized firms see improved real-time decision making
c. 75% of large and 71% of midsized companies observe improved workforce productivity
H1 There is co-relation between MHRM proactive activities and reduces mismanagement
H1- There is significant co-relation between effectiveness to maintain work life balance and
raising personal life stress adding, with accelerate workflows with informative alerts and
notifications along with feedbacks.
Even though technology Improves our life and makes it simpler too much interference of
such technology can disturb our lives on personal level.
XIII. Study Benefits To
I. IT HR can take proactive steps to retain people
II. Society can benefit by knowing pros and corn of M-HR as it has became the vital part of
the portion of life
III. What would be best M-HR practice or M-HR role trying to cut/reduce/withdraw the
admin budget/Hr budget/overhead cost/welfare cost to retain their employee and
companies profit at the same time.
XIV. Future Study Leads To
I. Policy updating regarding use of M-HRM
II. Rules and regulations revision for managing the work life balance.
XVI. REFERENCES:
[I] Internet :
[1] www.adp.com/tools-and-resources/adp.../insight-item-detail.aspx?id...
[2] http://www.adp.com/tools-and-resources/adp-research-institute/insights/insight-item-
detail.aspx?id=F7F82D9F-10E4-493A-9E3E-FA72BC87E699
[3] https://www.youtube.com/embed/ejMkpJNl2tc?version=3&rel=1&autoplay=1
[4] https://mobileshrm.org/
[5] http://www.cascadehr.co.uk/hr-software/mobile-apps/
[II] eBooks :
[B1] http://www.computerweekly.com/ehandbook/The-Future-of-Work
[B2] http://www.wa-engage-mobile-2012-0417.pdf
[III] Magazines articles whitepapers and Journals
[MJ1] http://www.frontiersoftware.com/about-us/articles-whitepapers-presentations
[MJ2] http://www.workforce.com/articles/20878-leading-the-way-in-hr-applications-
november-2014 Leading the Way in HR Applications (November 2014)
IV] News Papers NP1] Lokmat

INCON - XI 2016 142

Human Resource Management Is The Key For Competency Development

To Meet The Future Challenges Of The Business
Prof. Sudhir S. Sant
Dr.D.Y.Patil Institute of Management and Research
Pimpri, Pune 411018
India
ABSTRACT:
At present the functioning of Human Resource Management (HRM) is changing
from traditional to modern style due to different micro and macro factors and because of
tremendous pressures for change. Changes in the economy, technology have created
different needs for organizations and making the Human Resource Management to
change completely towards new directions. The challenges due to globalization are also
creating new opportunities for an organization and in return for Human Resource
Management. Thus, the objectives of this article are to find out different competencies
which are required to meet the challenges and opportunities of the business. It is
essential to develop competencies that should influence the future of the business.
Human Resource profession has faced numerous challenges in the past, which has
compelled Human Resource management to try and implement various strategies at the
work place for the survival and prosperity of the business .The competency development
in enhancing the success of employees and organizations has become central part of
human resource management policies and practices.
Introduction
Competence is the ability of an individual to do a job properly. A competency is a set of
defined behaviors that provide a structured guide enabling the identification, evaluation and
development of the behaviors in individual employees. The term "competence" first appeared
in an article authored by R.W. White in 1959 as a concept for performance motivation. Later,
in 1970, Craig C. Lundberg defined the concept in "Planning the Executive Development
Program". The term gained traction when in 1973, David McClelland, Ph.D. wrote a seminal
paper entitled, "Testing for Competence Rather than for Intelligence". It has since been
popularized by one-time fellow McBer & Company (Currently the "Hay Group") colleague
Richard Boyatzis and many others, such as T.F. Gilbert (1978) who used the concept in
relationship to performance improvement. Its use varies widely, which leads to considerable
misunderstanding.
"competence" as a combination of practical and theoretical knowledge, cognitive skills,
behavior and values used to improve performance; or as the state or quality of being
adequately or well qualified, having the ability to perform a specific role. .
Competency is also used as a more general description of the requirements of human
beings in organizations and communities. Competencies are also called: behaviors, skills,
values, performance dimensions or performance standards. Where goals or objectives describe
"what" you want an employee to accomplish, competencies describe "how" you want them
accomplished. As such, cultivating and managing competencies is an important way to foster
employee and organizational high performance. They're also a key way to define and
strengthen your organizational culture and to strengthen your competitive differentiators.
INCON - XI 2016 143

Competency has different meanings, and continues to remain one of the most diffuse
terms in the management development sector, and the organizational and occupational
literature.
Competencies are also what people need to be successful in their jobs. Job competencies
are not the same as job task. Competencies include all the related knowledge, skills, abilities,
and attributes that form a person’s job. This set of context-specific qualities is correlated with
superior job performance and can be used as a standard against which to measure job
performance as well as to develop, recruit, and hire employees.
Competencies are required to all employees in an organization that can contribute to
improve organizational performance. Competencies are most effective if they meet several
critical standards, including linkage to, and leverage within an organization’s human resource
system
Core competencies differentiate an organization from its competition and create a
company’s competitive advantage in the marketplace. An organizational core competency is
its strategic strength.
Competencies provide organizations with a way to define in behavioral terms what it is
that people need to do to produce the results that the organization desires, in a way that is in
keep with its culture. By having competencies defined in the organization, it allows employees
to know what they need to be productive. When properly defined, competencies, allows
organizations to evaluate the extent to which behaviors employees are demonstrating and
where they may be lacking. For competencies where employees are lacking, they can learn.
This will allow organizations to know potentially what resources they may need to help the
employee develop and learn those competencies. Competencies can distinguish and
differentiate your organization from your competitors. While two organizations may be alike
in financial results, the way in which the results were achieve could be different based on the
competencies that fit their particular strategy and organizational culture. Lastly, competencies
can provide a structured model that can be used to integrate management practices throughout
the organization. Competencies that align their recruiting, performance management, training
and development and reward practices to reinforce key behaviors that the organization values.
Objectives of the study
1) To know the importance of competencies in the organization.
2) To create awareness of the competency mapping to the employees.
3) To study the personal views of the Managers on the implementation of competency
mapping.
4) To know that how far the competency mapping is helpful in creating an effective
workforce in the organization.
5) To know in what way the organization wants its employees to work.
6) To understand the basic competencies that one should inculcate in order to perform
efficiently in the organization.
7) To take the help of competency mapping technique as it helps individuals
align their behavior with key organization strategies.
8) To identify and describe the factors which are critical to the functioning of a particular
job
9) To identify required competencies to perform a job and actual talent of job holder.
INCON - XI 2016 144

10) To find competencies which are required to select right man for right job by establishing
standards.
11) To identify the training and development needs of individual or organization.
This research paper is based on secondary data. The data is collected through literature
review of various articles, paper, books and magazines, websites, periodicals, newspapers etc.
Importance of competency for a Job:
“Competency for a job can be defined as a set of human attributes that enable an
employee to meet and exceed expectations of his internal as well as external customers and
stake holders”.
It has been a general observation that hard work, sincerity, knowledge, intelligence alone
does not make a person star performer in his profession. There are other factors that help an
individual to excel in his job/ profession. All of us have noticed during our school days, that
the top scorer of a class is not always the most intelligent or the most hardworking student of
the class. We have also observed that top scorers from objective type of tests are not able to
hold their rank in descriptive type of tests. Thus set of human qualities and/ or attributes that
make a person a star performer for a particular activity defines the competency for that
particular activity.
In organizational and business context, competency required for a particular job depends
on many factors The factors include social culture, nature of business, business environment
organizational culture, work environment, organizational structure, duties and responsibilities,
nature of processes and assigned activities, attitude and motives of colleagues, superiors &
subordinates. Some of these factors may change with time and thus changing competency
requirements for the same job position in the organization. Competency for any job position at
a particular time is a unique set and as organization has many different job positions,
managing many such sets is a difficult task. Hence for the purpose of HR management, the job
competency is divided into elemental competencies.
Generally the competencies that we talk in HR are the elemental competencies.
Examples of elemental competencies are communication skills, business skills, achievement
orientation or drive, decision making, analytical skills etc.
Human Resource Management plays important role to develop the required
competencies in the following areas by which organizations can be able to meet the
challenges and get further opportunities for the business.
1. Selection of the employees in a professional manner
 It gives prediction of selecting and interviewing only individuals who are likely to
succeed on the job.
 Minimizes the investment in people who may not meet the organization’s expectations
 It enables valid interview and selection process
 Helps to differentiate between competencies that are trainable after hiring and those are
more difficult to develop
INCON - XI 2016 145

2. Training & Development
It increases the skill and knowledge of a person for a particular purpose Training and
Development fills the gaps between job competencies required for the jobs and the
competency portfolio processed by the employees.
 Training and development plan to identify missing competencies required to perform
particular job.
 It is important to focus on the skills, knowledge and characteristics that are required for
job effectiveness
 Training and development activities are required to align with organizational needs
 Provides a competency framework for ongoing coaching and feedback, both
development and remedial
3. Performance Appraisal and Performance Management:
Provides appraisal of employees’ present performance as well as potential for future
development and performance outcomes linked to job competency profile critical
factors.
 Performance management provides a feedback of what will be monitored, measured, and
rewarded
 Performance appraisal focuses on performance outcome and need for development
 It gives information about a person’s behavior on the job
 It indicates required development efforts and performance outcomes
4. Career Planning:
Development of career paths necessary for promotion and long term career-growth
 It identifies skills, knowledge, and characteristics required for the job right mow and for
future assignment.
 Identifies necessary levels of proficiency for promotions
 It identifies benchmarking areas for employees to progress upward
 It identifies required competencies for vertical career progression.
5. Succession Planning:
It the process of passing the authority from one generation to other generation. As per the
changes it is required to have competencies for the successor .It focuses on retaining and
growing the competency portfolios critical for the organizational development.
 It provides information about the candidates whether they are’ ready for the new role
 It identifies missing competencies or gaps in competency proficiency levels
 It checks the strength of the employees to find out whether employees are high
performer or low performer and what they need to acquire to step up to the next level
 It gives competency framework for the transfer of critical knowledge, skills, and
experience prior to succession – and for preparing candidates to take the responsibilities
at higher level.
 It suggests leadership development programs which are important for management
succession planning.
INCON - XI 2016 146

Examples of competencies
 Organizational competencies: The mission, vision, values, culture and core
competencies of the organization that sets the tone and/or context in which the work of
the organization is carried out (e.g. customer-driven, risk taking and cutting edge).
 Core competencies can be assessed by observing a person's behavior at work, while
playing a sport or by reviewing a company's output.e.g.Analytical Thinking - Client
Service - .Computer Competency .Conflict Resolution .Continuous Education -
.Creative Thinking .Decision Making - Excellent communication - .Flexibility -
Initiative - .Interpersonal Relations - Interpersonal Awareness-Leadership -
Management Skills - .Manages Change - Problem Solving - Project Management –
Risk Management & Assessment - Taking action -.Writing Skills -
 Technical competencies: Technical competence is the ability to perform the activities
within an occupation to a defined standard, consistently and over time
 Behavioral competencies: Behavioral competencies are observable and measurable
behaviors, knowledge, skills, abilities, and other characteristics that contribute to
individual success in the organization (e.g., teamwork and cooperation, communication)
 Functional competencies: Functional competencies are specific to a specific
department or type of job. Functional competencies describe the knowledge, skill, and/or
abilities required to fulfill required job tasks, duties or responsibilities
 Management competencies:
 Adaptability
 Aligning Performance for Success through Planning, Organizing and Delegation
 Building Relationships/Valuing Diversity
 Communication
 Conflict Management/Problem Solving
 Developing Others/Coaching
 Ethics
 Functional Technical Skills
 Organizational Awareness/Strategic Thinking & Decision Making
Indian companies are developing building competencies through HR Strategies
The way of working in Indian industry has changed a lot. There are many changes have
taken place which has shown growth in the last 20 years. They are able to beat the foreign
competition. The Indian companies have well established themselves in the global
environment by way of increasing competency level.
The restructuring of the companies and to develop the competencies was the need of the
leading industries. Major changes are accepted by the companies like—Larsen & Toubro,
Wipro, Infosys, Godrej, Birla and Tata, General motors, Volkswagen. The core competencies
of these companies have over the years evolved into newer core competencies. Many of them
today can reinvent themselves and take advantage of future growth potential. Companies in
India today are at different stages of their evolution and as businesses evolve, there will be a
need to find ways to develop competencies more effectively in future.
Structuring the competencies
INCON - XI 2016 147

We can create a competency structure for the organization and for each position in by
identifying the key abilities required to improve performance and achieve success.
When choosing core or organizational competencies (like innovation, creativity,
technical expertise, quality, customer focus, or safety, as your core organizational
competencies) that: Makes it to understand the organizational culture, are essentials for
organization development, matches organization's strategic goals, gives ability to fight
competition. In general, it's important to identify the most important core competencies
required for organization..The appropriate competencies can be the best fit for the
organization. Each job within the Career Framework has a defined set of core competencies as
well as unique role based competencies and specific proficiency levels.
Then, for each competency, create: a short description, examples of the behavior to
provide clarity, descriptions of the levels of mastery, the required learning activities to help
develop it further more effectively.
Once you've identified your core competencies, you can repeat the exercise for each role
or area in the organization. When choosing job-specific competencies, identify the abilities
that are required for success and high performance in the job.
Challenges of competency development
The challenges of competency development in an organization are due to lack of
planning and not matching the HR strategies with the goals of the organization.
 Competency development is not regarded as vital task in the organization for future
competitiveness.
 Another challenge involves understanding the connection between the profitability of the
organization and the employees’ efficiency
 Insufficient time and information as well as strategic working.
 Lack of proper training and development of employees.
 Mismatch between demand and supply of employees
 Studies show that employees appreciate development opportunities at their work as well
as the possibility to learn something new through their own work.
 Ways to develop your competence
 On the job learning and training to increase skill and knowledge.
 Participation of employees in new projects and assignments.
 Industrial visits and interactions with customers.
 Conducting business aware programme
 Group Discussion at workplace.
 Consider every circumstance an opportunity
 Join a mastermind group
 Find a mentor
 Take advantage of technology
I. Competencies to deal with People
Establishing Focus: Providing Motivational Support: Fostering Teamwork:
Empowering Others: Managing Change: Developing Others: .Managing Performance:
Attention to Communication: Oral Communication: Written Communication:
INCON - XI 2016 148

Persuasive Communication: Interpersonal Awareness: Influencing Others: Building
Collaborative Relationships: Customer Orientation:
II. Competencies to deal with Business
Diagnostic Information Gathering: Analytical Thinking: Forward Thinking:
Conceptual Thinking: Strategic Thinking: Technical Expertise: Initiative:
Entrepreneurial Orientation: Fostering Innovation: Results Orientation: Thoroughness:
Decisiveness:
III. Self-Management Competencies-----
Self Confidence: Stress Management: .Personal Credibility: Flexibility:
Importance of the study to the Researcher
 As a researcher, this study has helped me to understand that how we can practically use
competencies of the employees so that he can perform according to the desired
expectation of the organization.
 It has also availed me with the opportunity to understand that how or on what basis an
organization should recruit and select and appraise the employee. This has also helped
me to understand the technique to put the right person at the right job based on one’s
possessed competency and those needed to perform the job fruitfully.
Importance of the Study to the Organisations
With global economy and the world becoming a global village, firms have become more
aware of the need for having competent employees and developing distinguished
competencies for every organization. This need arose due to the following reasons:
 The study of this topic will help the organization to understand more effectively about
the competencies that the job profile describes for all designation.
 It will also help them to use competency mapping in order to select the right man at the
right job and to shoulder the responsibilities to the right person who can efficiently carry
forward the work.
 It will also help the organization to use competency mapping and development in order
to analyze the competency gap more accurately.
Importance of the Study to the Society
This study of competency development will help the society at large as it will enable
people understand the key competencies demanded by a company before they apply for the
particular job and will try to imbibe that within themselves so that they can serve the
organization more effectively. This will also help them to understand that even after getting
the job how they are going to enhance their potentiality in order to escalate the hierarchy of the
company.
Conclusion
Globalization is leading to increasing international standardization of work system and
operations. International organizations are concentrating on competence development and
lifelong learning. The widespread technological development that form the normative basis for
the competencies. The rate of technological advance has accelerated at an unprecedented pace;
INCON - XI 2016 149

accordingly, the development of skills through training should be the strategic response to
technological change, globalization and other forces affecting labor markets. The new
generation of technology, especially information and communications technologies and certain
manufacturing processes has likely effect on productivity .The introduction of new
technologies has reduced the demand for unskilled labor and raised the value of advanced
skills and competencies in the various industries. In the Information Technology sector,
technological change has created new categories of high-skilled occupations in insurance,
information processing, and finance and business services.
Work practices associated with increased employee involvement – such as the
introduction of high-performance work organization involving devolved decision-making, and
reliance on team-based systems – are perhaps the most important of the management practices
affecting skill requirements. Self-managed teams in particular transfer management skills to
front-line workers as they are exposed to the tasks other team members are performing.
Skill development by Competency mapping is one of the most accurate means in
identifying the job and behavioral competencies of an individual in an organization
Competency mapping should not be seen as rewards. All the stakeholders must see in the
exercise an opportunity for long-term growth. Competency mapping is not only done for
Confirmed employees of an organization and it can also be done for contract workers or for
those seeking employment to emphasize the specific skills which would make them valuable
to a potential employer. Competency is a set of knowledge, skills and attitudes required to
perform a job effectively and efficiently. A Competency is something that describes how a job
might be done excellently; a Competence only describes what has to be done, not how. Core
competency is something which cannot be copied and it is the personalized underlined
characteristics.
REFERENCES:
[1] Competence (human resources)
[2] From Wikipedia, the free encyclopedia
[3] Ways to increase competency development by David Horsager
[4] Skill and Competence Hierarchy.
[5] Collin, Audrey (1989). Managers’ Competence: Rhetoric, Reality and Research.
Personnel Review, 18, 6, pp. 20 - 25
[6] Dreyfus, Stuart E.; Dreyfus, Hubert L. (February 1980). "A Five-Stage Model of the
Mental Activities Involved in Directed Skill Acquisition" (PDF). Washington, DC:
Storming Media. Retrieved June 13, 2010.
[7] "Professor Hubert Dreyfus". berkeley.edu.
[8] Raven, J., & Stephenson, J. (Eds.). (2001). Competency in the Learning Society. New
York: Peter Lang.
[9] BoxleyGroup.com/CompetencyIQ
[10] "Instant Employee Recognition Platform - Braavoo". braavoo.com.
[11] "Talent, Learning & Performance Management Software - Cornerstone OnDemand".
cornerstoneondemand.com.
[12] "Engagedly-Improving Employee Engagement and Building High Performance Teams".
engagedly.com.
INCON - XI 2016 150

[13] http://www.ihrdc.com/CompetencyManagement
[14] "SuccessFactors, the leader in HCM software for cloud-based HR". successfactors.com.
[15] "Workday - Alternative to ERP For HR and Financial Management". workday.com.
[16] "Competency Models - Competency-Based HR and Talent Management - Workitect.".
workitect.com.
[17] Robinson, M. A. (2010). Work sampling: Methodological advances and new
applications. Human Factors and Ergonomics in Manufacturing & Service Industries,
20(1), 42–60. http://dx.doi.org/10.1002/hfm.20186
[18] Examples of Core Competencies of a Human Resource Manager by Regina Anaejionu,
Demand Media
[19] Robinson, M. A., Sparrow, P. R., Clegg, C., & Birdi, K. (2007). Forecasting future
competency requirements: A three-phase methodology. Personnel Review, 36(1), 65–90.
http://dx.doi.org/10.1108/00483480710716722
[20] Eraut, M. (1994). Developing Professional Knowledge and Competence. London:
Routledge.
[21] Gilbert, T.F. (1978). Human Competence. Engineering Worthy Performance. New York:
McGraw-Hill.
[22] Mulder, M. (2001). Competence Development – Some Background Thoughts. The
Journal of Agricultural Education and Extension, 7, 4, 147-159.
[23] White, R. W. (1959). Motivation reconsidered: The concept of competence.
Psychological Review, 66, 5, p. 297-333
[24] Ravi Teja Sharma, ET Bureau Feb 13, 2011,
[25] Dr Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce
and Industry (FICCI)
[26] International Journal of Scientific & Engineering Research, Volume 2, Issue 8, August-
2011 Competency Mapping--A drive for Indian Industries--Author: R.Yuvaraj
[27] www.google.com
[28] www.ask.com

INCON - XI 2016 151

Socialism At Work Place –

Special Reference to Pcmc Industrial Belt
Advocate - Dr. Ruby Chhatwal
Sai-Ambience, F-Building, Flat No.502,
Pimple-Saudagar, Pune-411027
rpchhatwal@gmail.com
ABSTRACT:
Most Indian organizations and foreign companies operating in India could have
done better than what they are doing. There are many reasons for suboptimal
performance of organizations, across business, Government and NGOs. These are lack
of appropriate capabilities, lack of training and development, lack of leadership,
improper risk assessment, inappropriate strategy or business model. Different
companies are plagued with some or a combination of these issues. All of us know that
even if strategy or business model is slightly defective or if the risk was not properly
assessed, the key to success is excellent execution. However, most companies
demonstrate lack of excellence in execution.
The primary reason for lack of excellence in execution is "Socialism at Work",
which cuts across most companies in almost all sectors in Asia and especially in India. If
the organizations reward the high performer and low performer similarly, what is the
incentive to perform? Even worse, the organizations do not give differential treatment to
performers, in terms of opportunities, resources and recognition and appreciation.
Key Words : Socialism – Resources - Recognition And Appreciation
Introduction :
Socialism is an economic system where the means of producing wealth (factories,
offices, etc.) are owned by society as a whole, meaning the value produced belongs to
everyone in society as opposed to a small class of private owners. People who advocate this
type of system are called socialists. There are two ways socialists believe society can own the
means of producing wealth: either the is used state or worker-owned cooperatives are used.
Another key belief is that management and portion are supposed to be based on public
interests. Socialists believe that everything in society is made by the cooperative efforts of the
people.
There are many varieties of socialism, so no one definition can apply to all of them;
however, in all varieties, the workers own the means of production. The major differences
between the different varieties are the role of the free market or planning, the method of
ownership of the means of production, the role of management of workers and the
government's role in the economy.
A more extreme form of Socialism is called Communism.The main difference between
Socialism and Communism is that in a Communist society, there is no state, money or social
classes.
Socialism is an economic theory of social organization that advocates that the means of
production, distribution, and exchange should be owned or regulated by the community as a
INCON - XI 2016 152

whole. In Marxist theory, it is a transitional (temporary) social state between the capitalism
and Communism.
Social democracy is a kind of Socialism that tries to mix parts of socialism with
capitalism.In this system, the government takes some wealth (money) from the rich and gives
it to the poor like a Communist state, but despite any increase in regulatory control and
reduced monetary incentive, people can continue to operate their own businesses and own
private propertUnlike communism, a portion of the money siphoned out of the economy
through taxation is partially redistributed under the auspices of the common good after
deductions for government administrative expense and collection, rather than direct seizure of
private property for public possession. The primary strategy of democratic socialism is
fundamental transformation through systematic reform rather than overt revolution.
In many countries that practice social democracy, specific services, and some industries,
are subsidized and/or partially controlled by the government For example, education , health
care housing utility companies or public transportation are some industries that might be
owned/maintained by the government in a socialist system. For the most part, people working
in these industries are paid by the government, with money paid by the people as taxes.
Welfare is likely offered under socialism.
Another kind of Socialism is "Collectivization." In this system, money and goods are
shared more equally among the people, with the government in control. In theory, this system
results in the divide between classes getting smaller, with the poorest of a nation's people
being better cared for while the richest accept higher taxes and economic
regulations/restrictions. Of course, Socialism as it is commonly practiced differs in many ways
from communism (See "The History of Socialism and Communism", later in the article.)
Today, many democratic socialists, especially in Western Europe, want industries to be
guided jointly (together) by representatives of shareholders as well as the workers working
together in what is known as an industrial democracy because both groups have interests in the
success of the enterprise. This would be a more direct democratic way of organizing rather
than control by central government. Trade unions and/or workers councils would represent the
interests of the employees.
Many countries see Socialism differently. Socialist International is an organization
dedicated to the cause of promoting socialist ideals, and has ties with many Socialist parties,
especially Social Democratic parties.
Most non-communist people say "communism" when they mean the Marxist and
Leninist ideas of Russia's Bolshevik party. Marx believed that capitalism followed the
economic and political system of feudalism. He also believed that capitalism would oppress
many people, and those people would eventually revolt and use socialism. Then he thought
that socialism can be another bridge, but to Communism. However, many people incorrectly
use the term "Communist" to refer to a socialist state. Others call this 'State Socialism,' to
distinguish it from the communist goal that does not need a state or any form of government.
To non-communists, the word 'socialism' is now mostly used for attempts to come close to this
goal in a democratic state.
Most Indian organizations and foreign companies operating in India could have done
better than what they are doing. There are many reasons for suboptimal performance of
organizations, across business, Government and NGOs. These are lack of appropriate
capabilities, lack of training and development, lack of leadership, improper risk assessment,
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inappropriate strategy or business model. Different companies are plagued with some or a
combination of these issues. All of us know that even if strategy or business model is slightly
defective or if the risk was not properly assessed, the key to success is excellent execution.
However, most companies demonstrate lack of excellence in execution. What is the root
cause?
The primary reason for lack of excellence in execution is "Socialism at Work", which
cuts across most companies in almost all sectors in Asia and especially in India. If the
organizations reward the high performer and low performer similarly, what is the incentive to
perform? Even worse, the organizations do not give differential treatment to performers, in
terms of opportunities, resources and recognition and appreciation.
What should companies do to enhance performance?
Differentiate through:
1. A very transparent PMS process with quantified goals.
2. Capability of managers to call a spade a spade.
3. Leaders own differentiation of performance and drive it though the year.
3. Very high differentiation in variable pay and increments between high and average
performers.
4. The developmental and growth opportunities for the high performers, which should be
distinct from those available to average performers.
5. Superior resources to high performers in order to help them be more productive and
effective. This would ultimately help business perform better.
In Government sector the option to differentiate is limited. Therefore motivation to
perform is limited.
Some of the public sector companies, especially banks, have used differentiated
opportunities and resources as key drivers to motivate high performers and help them deliver
better. These organizations have excelled compared to their peer group. Their ability to
influence or effect differentiation in compensation was limited.
In Private Sector all the levers are available. But the will to create differentiation is
lacking in most organization. The challenge becomes bigger when CEOs do not want to
differentiate, little realizing that this will hamper the business performance and consequently
their own performance, and may be survival.
In an environment of Corporate Socialism, high performers are frustrated and leave for
greener pastures. This leaves the well rewarded mediocre talent behind, resulting in a
mediocre organization and mediocre business performance.
"Leaders have to choose between socialism and high performing businesses"
In fact, Capitalism, Socialism, Communism, Democracy, Monarchy, etc. are ideology
based. All ideologies indicate the same goal of human welfare irrespective of the path adopted,
e.g. 2+2+2 = 6, or 2X3=6, or 3X2=6 or 1+2+3 =6. The ideology works best if it is
implemented in word and spirit. This automatically ensures high performance, the outcome of
leader's spirited functioning. But it hardly happens. The leader exploits the situation under the
pretext of some ideology claimed to be embraced. But hardly the leader walks the talk. This
spirit of harmony between walk and talk is unfortunately missing in many leaders especially
those who come from developing countries.
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This is applicable to all organizations, public or private. Public or private is just a
classification for the sake of our convenience. How can one assume and justify that public
sector has lower productivity than private sector, when both work for public welfare in a larger
sense?
Socialism is a social and economic system characterised by social ownership and
democratic control of the means of production as well as a political theory and movement that
aims at the establishment of such a system.["Social ownership" may refer to public ownership
cooperative ownership citizen ownership of equity or any combination of these.[8] Although
there are many varieties of socialism and there is no single definition encapsulating all of
them, social ownership is the common element shared by its various forms.
Socialism can be divided into both non-market and market forms.[ Non-market
socialism involves the substitution of factor markets, money and financial decisions for
managing the economy with engineering and technical criteria centered around calculation
performed in-kind thereby functioning according to different economic laws than those of
capitalism with an economic mechanism that circumvents the inefficiencies and crises
traditionally associated with capital accumulation and the profit system. By contrast, market
socialist retains the use of monetary prices, factor markets and, in some cases, the profit
motive with respect to the operation of socially-owned enterprises and the allocation of capital
goods between them, with the profits accruing to society at large in the form of a social
dividend or directly to the workers of each firm. The feasibility and exact methods of resource
allocation and calculation for a socialist system are the subjects of the socialist calculation
debate
The socialist political movement includes a diverse array of political philosophies that
originated amid the revolutionary movements of the mid-to-late 1700s out of general concern
for the social problems that were associated with capitalism. In addition to the debate over the
degree to which to rely on markets versus planning, the varieties of socialism differ in the type
of social ownership they advocate, how management is to be organized within productive
institutions, and the role of the state in constructing socialism. Core dichotomies associated
with these concerns include reformism versus revolutionary socialism and statesocialism
versus libertarian socialism While all tendencies of socialism consider themselves democratic,
the term "democratic socialism” is often used to highlight its advocates' high value for
democratic processes and political systems and usually to draw contrast to other socialist
tendencies they may perceive to be undemocratic in their approach.
Scope :
Socialist government is not state government. It would not rule over people and places,
but would empower the people to rule over things. Socialism means a government in which
the people collectively own and democratically operate the industries and social services
through an economic democracy. And when we say “collectively own,” we are not talking
about homes, or cars, or other personal belongings. We are talking about the things needed to
produce and distribute homes, cars and all the other things we need and want.
Aims and objectives :
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The paper aims to track the transition of Socialism and workplace over the time and
identify the factors that will affect the next generation. The Objectives underlying the primary
are being listed below :
1. To explore the concept of Socialism at Workplace.
2. To track the changes over the time and identify the critical factors responsible for such
transition.
3. To anticipate the future trends in Socialism and workplace on the basis of analysis of
history.
4. To discuss the various means and track helpful for firms to cope up with the concept.
Literature Review :
History
A Welshman, Robert Owen was the first socialist. His followers began calling
themselves socialists in 1841. He is still regarded as a pioneer of the Co-operative Movement
in Britain. He said that workers should own the companies they worked for. The workers
would then share the profits among themselves. He set up a new model factory in New
Lanark, Scotland.Karl Marx is the most well-knowned architect of the theory of socialism, and
communism. He wrote a book about capitalism, socialism, and communism, called "The
Communist Manifesto “ Friedrich Engels co-wrote the book, and paid for much of Marx's
work and research.
Many socialist political parties were formed during the 19th century and early part of the
20th century. Left-wing political parties are generally newer than right-wing ones.
Socialism with Chinese characteristic
Socialism with Chinese characteristics combines the basic principles of scientific
socialism with the facts of building socialistic China. Socialism is the common rule and
essential feature of the practice, and Chinese characteristics are what the basic principles of
socialism really represent in China. And the scientific socialism theory is raised by Teng
Hsiao-ping, the chief designer of opening up and economic reform in China.
1. For the economic aspect, China insists on the economy with different types of ownership
basic system of market economy with the public ownership in the leading role.
2. For its political aspect, China sticks to a system of the People's Congress, a system of
multiparty cooperation and political consultation, and a system of regional ethnic
autonomy.
3. For its cultural aspect, China keeps its socialist value system at the core of social trends,
while respecting differences and expanding common grounds.
Many people believe that socialism means government or state ownership and control.
Who can blame them when that is what the schools teach and what the media, politicians and
others who oppose socialism say? Worse, some people and organizations that call themselves
socialist say it, too—but not the Socialist Labor Party.(SLP).
The SLP says that socialism is something entirely different. After all, we have plenty of
government or state ownership in America today, but who would argue that America is a
socialist country because of it?
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This is a capitalist country, not a socialist one. Yet many cities own and run their own
hospitals, libraries, transportation systems and utilities. The public schools, state college and
university systems are government owned. The federal government owns and controls the FBI,
the CIA, the army, the navy, the air force, the U.S. Marines and the National Aeronautics and
Space Administration. Why, it even owns all the national forests and national parks. Yet, who
would call these institutions examples of socialism? Who would say that today’s government
is socialist because it owns all of these things? Not the SLP.
Socialist government is not state government. It would not rule over people and places,
but would empower the people to rule over things. Socialism means a government in which
the people collectively own and democratically operate the industries and social services
through an economic democracy. And when we say “collectively own,” we are not talking
about homes, or cars, or other personal belongings. We are talking about the things needed to
produce and distribute homes, cars and all the other things we need and want.
Under socialism the workers who operate the industries and services would collectively
own and democratically manage them. In each factory and other workplace, the rank and file
would elect their own immediate supervisors and management committees. They would also
elect representatives to local and national assemblies of the industry or service in which they
work, and to an all-industrial congress to coordinate production and distribution of all goods
and services throughout the country. In short, socialism would replace the political
government run by politicians with an industrial government run by workers and their elected
representatives.
Instead of a senator from California or a representative from New York, there would be
worker-delegates from the automotive industry, from the transportation systems, from the
mines, from the clothing factories, from services such as restaurants, hospitals, schools and so
on. These representatives would have the single task of deciding what should be produced and
how best to produce it.
Today we have political democracy only. Workers do not have economic democracy.
The owners of the factories have almost absolute power over their employees. They can fire
whomever they please, whenever they please. They can close the plant down and move to
another state or another country. They can even order their workers to manufacture something
worthless or harmful. In short, they have all the power of dictators—economic dictators.
Socialism means economic democracy. Instead of voting once every two or four years
for politicians, workers would be making decisions every day where they work and in the field
in which they are most qualified. Here is where their vote counts because it vitally affects their
own personal lives.
When we use the word “worker,” we mean everyone who sells his or her labor power, or
ability to work, at so much per hour, or so much per week, to a capitalist employer. Coal
miners are workers, but so are musicians, scientists, nurses, teachers, architects, inventors and
mathematicians.
Anticipated Future Trends and Benefits of Socialism :
Under capitalism workers receive only a small fraction of the wealth that they alone
produce, while the lion’s share goes to the capitalist owners and to the bankers, landlords,
insurance companies, lawyers, politicians, and all the other parasites who live off the back of
INCON - XI 2016 157

labor and perform no useful work. By ending this robbery of the working class, socialism will
enable workers to enjoy the full fruit of their labor.
Socialism would also enable us to raise our living standards dramatically by ending the
billions of dollars thrown away on arms production and “defense,” by ending the waste,
duplication and inefficiency of capitalist industries, and by returning millions of soldiers and
unemployed workers to useful occupations.
In socialist society there would be no wage system. Workers would receive the social
value of their labor. And since the people would collectively own the industries, anyone would
be free to select any occupation in which he or she has an interest and aptitude. No longer
would workers live under the fear of being laid off, or be compelled to spend their lives at
some job they hate or are unsuited for. Also, since the people would collectively own the
colleges and universities, no longer would workers be denied education or training because
they lack the money to buy it.
Conclusion :
Production for Use, Not for Profit
Furthermore, under socialism we would produce for use and to satisfy the needs of all
the people. Under capitalism the industries operate for one purpose—to earn a profit for their
owners. Under this system, food is not grown primarily to be eaten. It is grown to be sold.
Cars are not manufactured primarily to be driven. They are made to be sold. If there are
enough buyers here and abroad, then the capitalists will have their factories turn out cars,
appliances, pianos and everything else for which buyers can be found. But if people lack
money, if the domestic and foreign markets cannot absorb them, then these factories shut
down and the country stagnates, no matter how much people need these commodities.
At the present time, agricapitalists know that they can produce more than market
conditions and price-protecting government restrictions, compensated for by cash subsidies,
permit them to. Meanwhile, millions of Americans suffer from malnutrition and hunger, as
recent surveys have shown, and most households count their nickels and dimes when they
shop for food.
The periodic depressions and recessions of the past have occurred, we are told, because
too much was produced—overproduction. Factories turned out so vast a quantity of goods that
their owners shut them down and laid off the workers who produced this abundance.
Under socialism the factories and industries would be used to benefit all of us, not
restricted to the creation of profits for the enrichment of a small group of capitalist owners.
Under socialism our farmlands would yield an abundance without great toil; the factories,
mines and mills would be the safest, the most modern, the most efficient possible and
productive beyond our wildest dreams—and without laborious work. Our natural resources
would be intelligently conserved. Our schools would have the finest facilities and they would
be devoted to developing complete human beings, not wages slaves who are trained to hire
themselves out for someone else’s profit. Our hospitals and social services would create and
maintain the finest health and recreational facilities.
An End to Poverty
In all previous ages of human history, poverty for most of the people was inescapable.
There was simply not enough to go around. But not so today. Industrial technology and
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scientific knowledge have so vastly increased our ability to produce what we need and want
that there is no longer any excuse whatsoever for the poverty of a single member of society.
Today we have the material possibility of abundance for everyone, and the promise of the
leisure in which to enjoy it.
But under capitalism industrial technology is used to replace workers and increase
profits. Instead of creating a society of abundance, capitalism uses machinery to create
unemployment and poverty. Our inner cities have been converted largely into festering slums
in which impoverished people, not understanding the cause of their miseries, are imprisoned
and damned to a life of misery.
It is not technology that threatens us. By themselves, improved methods of production
and distribution are not social evils. They could be a blessing, but under capitalism technology
is used for antisocial purposes.
This follows from the fact that technology and industry are the exclusive property of a
small minority of the American people—the capitalist class. Capitalism uses the industries for
the private profit of their owners and not for the benefit of the vast majority of the American
people—the workers who invented and built them.
Build a New Society
In socialist society, on the other hand, since we would collectively own the factories and
means of production, we would have full and free access to the means of wealth production
and distribution. Since we would receive the full social value of our labor there would be no
unwanted surplus. We would collectively produce the things we want and need for full and
happy lives. It would be to the benefit of all to find new inventions, new means of production,
improved means of distribution. Society as a whole would have a vital interest in providing
opportunity to each individual to find the work for which he or she is best suited and in which
he or she will be happiest. There would be the fullest freedom and opportunity.
And, we repeat, there would be a complete and full democracy. Democracy that will
truly be based on the broadest lines. Democracy in which the final and only power will be the
great mass of our people, the useful producers, which in socialist society would mean
everybody. Society no longer would be split into two contending classes. Instead, we would all
be useful producers, collectively owning the means of production and distribution, collectively
concerned with producing the most with the least expenditure of human labor, and collectively
jealous of the rights of the individual to a full, free and untrammeled life of happiness and
accomplishment.
It is within the power of the working class to establish such a society as soon as they
recognize the need for it and organize to establish it. By learning you will learn how to
effectively demand the end of capitalism and to organize with your fellow workers for the
establishment of socialism.
Bibliography :
REFERENCES:
1. Capitalism
2. Communism
 Durlauf, Steven N.; E. Blume, Lawrence. "socialism". Palgrave Macmillan 2013.
INCON - XI 2016 159

 Peter Lamb, J. C. Docherty. Historical dictionary of socialism. Lanham, Maryland, UK;
Oxford, England, UK: Scarecrow Press, Inc, 2006. p. 1.
 Gale (2001). "Socialism" . World of Sociology. Retrieved 15 June 2011.
 "Socialism". Encyclopedia of World Trade From Ancient Times to the Present. 2005.
Retrieved 15 June 2011.
 Chi, Liu. "socialism with Chinese Characteristics". CRENGLISH.com.
 www.slp.org • socialists@slp.org
 Website: www.mit.asia

INCON - XI 2016 160

A Study of Women Workers in selected Fruit Processing Units

with reference to Ratnagiri Taluka
Rupesh G. Sawant
(Asst. Professor)
Faculty of Commerce, Department of Accounting and Finance
R. P. Gogate College of Arts and Science, and
R. V. Jogalekar College of Commerce, Ratnagiri (M.S.) India
(Affiliated to University of Mumbai)
E-mail: rupeshsawant71@gmail.com
ABSTRACT:
Amongst various industries and manufacturing units that come under unorganized
sector, fruit processing units in Konkan region is one. These units are engaged in
manufacturing a variety of products by carrying out processing on to the raw cashew,
mango, kokam, and other locally available materials. The products which they
manufacture are popularly known as 'Konkan Meva' or 'Konkan Products'. Every year
the number of units is increasing with which the amount of manpower engaged in it is
also increasing. These units are run as household units, small-scale and cottage
industry, co-operative units and also private limited company. Most of these units are
run for a period of six to eight months in a year, and very few of them are run for the
whole year. Depending on the manufacturing capacity and availability of raw material
they run for a certain period of time and provide employment to certain number of
people from the locality where they operate. Most of the employment is available
seasonally. Being small size units having some common problems like insufficient funds,
low manufacturing capacity, non-availability of sufficient raw material, limited market
area, low sales turnover and profitability, and limited amount of surplus funds because
of which they are not in a position to make available sufficient or adequate facilities
leading to better working conditions. Majority of the manpower engaged in fruit
processing units is women. Being working women they are facing some social as well as
economic problems. More or less the scenario is same as in the other industries and
manufacturing units from unorganized sector.
The present research work is concerned with the study of profile of fruit
processing units and women workers working in it, the study of working conditions in
fruit processing units, and understanding the problems of women workers. It is
conducted in the selected industries and manufacturing units in Ratnagiri taluka of the
Ratnagiri district from the Konkan region.
Key Words: Fruit Processing Units, Women Workers, Working Conditions, Socio-
economic Problems.
1. Introduction
1.1 Introduction to Study:
It is an open truth that working women have to face problems just by virtue of their
being a women. Working women here are referred to those who are in paid employment.
Social attitude to the role of women lags much behind the law. A woman’s work is not merely
INCON - XI 2016 161

confined to paid employment. She has to almost always shoulder the burden of household
chores as well. Traditionally, men are seen as the bread winner and women as the house-
keepers and child bearers. This typecast role model continues to put obstacles before the
working women.
However, the participation of women employees or workers is increasing in the total
manpower. Women started come out of the house to work and earn. They are engaged in
various employments in the organized and unorganized sectors. Both the sectors have their
own unique nature and features. Fortunately, manpower engaged in organized sector has fewer
amount of problems. While, manpower engaged in unorganized sector has more amount of
problems. The workers engaged in various industries or manufacturing units from unorganized
sector such as construction, brick making, bidi making, plantation, and agriculture based
industries like sugar cane, tea and coffee gardens, etc., processing units and other small-scale
industries have various problems. These problems mainly arise due to the very nature and type
of these industries. The problems may vary from industry to industry or from one
manufacturing units to another. This suggests that problems faced by the workers both male as
well as female are attributable to the nature and type of industry or manufacturing unit.
Moreover, women workers may have some different problems because of the place they have
in the society and the outlook or attitude of the society. They may face problems which are
social as well as economic in nature because of the nature of work, terms of employment etc.
1.2 Rationale of Study:
Based on various studies already conducted, it can be easily stated that the women
working in unorganized sector are living a life far below from satisfaction. They do marry,
bear children, and get old but under these phases of life, they live the same life. They suffer
from many problems which mainly includes poor working environment where certain things
like health, safety and welfare are lacking, and also some social and economic problems being
a woman.
Out of the total manpower engaged in the unorganized sector, the number of women
workers is more. They constitute large portion of the total manpower operating in the
unorganized sector. Women workers in unorganized sector lag behind the males in terms of
level and quality of employment. Such women, when they have to perform dual of both
outside employment in harsh and hostile working conditions and manage their homes, come
across problems, which needs a loud hearing. Majority of these women are often illiterate,
unskilled, socially backward and economically weak which often hide their work participation.
Poverty, low level of literacy, low status in the society, inadequate health, safety and welfare
facilities, etc. are their major problems.
Women workers working in unorganized sector continue to labour under many severe
problems. These women workers are generally exploited. They are made to work for long
hours and wages paid to them are not according to their work. From the close study, it can be
easily estimated that the women working in unorganized sector are living a life far below from
satisfaction. The low earning of these women cannot meet with their daily needs. They have to
work and live under improper and unsatisfactory conditions. In fact, they work more than men
as they have to play a dual role working both in and outside the home. A few of them are
assisted by other members of family in household work otherwise they have to work solely.
No doubt, there are various laws to protect women and prevent exploitation but these laws are
INCON - XI 2016 162

found inadequate and are not practically and strictly implemented. Much remains to be done
for the betterment of these beautiful creations of God.
In the era of Liberalization, Privatization and Globalization where the process of
socialization and industrialization has speed up, Konkan region is also experiencing and
enjoying the fruits of open economy. The region is progressing socially as well as
economically. Over a period of time due to increase in general awareness among
entrepreneurs, co-operative societies, and due to the encouragement given by the Government
through various schemes, the number of fruit processing units either owned by private
individuals or run under other forms of ownership is increased. This has brought about a
significant change in the form of socio-economic development, increase in processing units,
demand for locally available material resources, and generation of employment opportunities
and so on. No doubt, empty hands of the rural women are offered with work. They started
earning money. At the same time they are also facing from several problems as well.
The study of fruit processing units in Ratnagiri taluka and women workers in it is an
attempt and an exercise to review a profile of such units and women workers in particular. It is
much concern with their working conditions, analyzing their problems, and future prospects
for them. So far as the working women in fruit processing units in the study area is concern,
till the date not a single attempt is made to undertake such a kind of study. Hence this study is
worthwhile.
1.3 Review of Literature:
The objective of the literature review is to get an insight in the area of research. There
are research works including thesis and dissertations, books, journals, periodicals, magazines,
and articles that have variety of literature on workers working in unorganized sector. Some
researches are specially meant for women workers, their problems and prospects. There is an
increasing research taking place in the subject area of women employees. The aspects included
in this literature review includes problems of women workers such as social problems,
economic problems, family problems, work related problems, other problems, dual role of
women employees, working conditions and terms of employment, organizational facilities to
women employees and so on. Before undertaking this research work, a review of 13 Ph.D.
theses, 05 M.Phil. dissertations, 23 books, and 16 articles is carried out. Extensive literature is
available related to both men and women workers in small scale industries as well as
unorganized sector in India. The literature which is made available is concerned with labours
in sugar industry, agricultural or farm labours, plantation labours, and other unorganized
sectors. However, no specific literature is found related to the fruit processing units
functioning in the Konkan region and women workers in it. Following is some of the recent
and selected literature.
Dr. Tessy, Kurian (2000), in his doctoral thesis titled, ‘A Study of Women Workers in
the Plantation Sector of kerala’ has discussed about the ‘Quality of Life’ of the women
workers in the major plantation sectors of Kerala. He has carried out survey using pre-drafted
and pre-tested interview schedules in three districts - ldukki, Wayanad and Kottayam in Kerala
in concentration with four major types of plantations such as tea, coffee, lubber and
cardamom. The objectives of study were to study the socio-economic background, working
and living conditions, consumption pattern and Physical Quality of Life of the women workers
in the plantation sector of Kerala. During the study he has found that the provisions of the
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concerned Acts are not implemented fully and the Physical Quality of Life of these women are
far from satisfactory. He has identified their problems and emphasized on a multi-dimensional
approach which is needed for the improvement of workers’ life in the plantation industry of
Kerala with coverage of every aspects like housing facilities, sanitation and hygiene
conditions, medical facilities, child care, social security and welfare benefits, etc. Finally, a
number of recommendations are made to improve the general welfare and Physical Quality of
Life of the women workers in the plantation sector of Kerala. Important among them are
welfare aspects consisting of health care, housing, water supply, environmental hygiene,
nutrition, family welfare, leisure-time activities etc.
Dr. Waghela, S. S. (2013), in her doctoral research work titled, ‘A Study of Women
Employees in selected Small-scale Industrial Units with special reference to Kalyan-
Dombivali MIDC area in Thane District’ has conducted a survey in the Kalyan-Dombivali
MIDC area in selected small-scale industrial units. The MIDC area consists of more than
seven hundred units which are engaged in manufacturing of a variety of products and provides
for employment opportunities to both men and women. Her study was mainly aimed at
understanding the position of women employees in small-scale industrial units and further to
study the industrial profile of MIDC area, to portray the problems faced by women employees,
to find out promotion and training opportunities, to find out participation of women employees
in selected SSI units, to study job satisfaction of women employees, to study attitude of men
towards women employees, and finally, to suggest suitable measure to solve the problems. She
has systematically selected around fifty units for study in a given population and has carried
out the interviews of women employees working on higher and lower levels in these units with
the help of questionnaire. She has also conducted interviews of superiors or managers. During
her study she has found that women employees are exploited in terms of more working hours,
low wages, poor conditions at work, inadequate leaves and no holidays, lack of safety
measures, poor welfare facilities, wrong treatment, and many more. In the end she has offered
for some solutions or remedial measures for the empowerment of women employees and
emphasized that they should get proper promotion and training facilities along with fair wages
and salaries. She has also expressed her optimistic view that quality of work life can also be
improved. Their problems should be taken at the higher note by the management and it should
try to solve the same. She has also pointed out that there is a need to play a definite role by the
government.
Mrs. Kadam, S. S. (1995), in her research work for M.Phil. degree titled, ‘Female
Vegetable Sellers in Kolhapur Mandaies: A Critical Study of Social and Economic Plight’ has
conducted a survey of women vegetable sellers from different vegetable markets in Kolhapur
city for assessing their profiles as regards social and economic status, identifying needs and
requirements as well as problems faced by them. She has conveniently conducted a survey in
the various vegetable markets in a Kolhapur city and has taken interviews of women vegetable
sellers sufficient in numbers. During her research work she has found that they are living far
below the standard and are enjoying very low socio-economic status. There problems are of
social and economic nature. Many of them have to shoulder the dual responsibilities. After
careful analysis of the problems at the end she has offered various suggestions for improving
the socio-economic condition and alleviating their problems.
Mrs. Eshwar, Raagini (2012), in her study attempted to identify the problems of female
labours working in traditional small scale industries of Jaipur city. The research was
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undertaken to study the impact of globalization on the social and economic status of the
female workers. It has tried to bring to light the problems faced by women labours vis a vis
their standard of living, their social and economic status, their personal aspirations as well as
aspirations about their children, their interpersonal relationships at home and at work place,
the problems they face at work place: wages, working hours, leave facilities, clean drinking
water, washrooms etc., workplace harassment and last, but not the least, their awareness about
social legislations. She said that female labours in the informal sector face serious problems
and constraints related to work such as lack of continuity, insecurity, wage discrimination,
unhealthy job relationship, absence of medical and accident care etc. According to her it is the
time to address the issues and discuss the kind of policy reforms and institutional changes
required for the emancipation and empowerment of female labour force. The research offers
the results of the schedule with deductive conclusion and after investigation some useful
suggestions have also been made that may prove useful in making some policies or laws which
may protect the rights of female labours and help to improve their socio-economic status. She
hopefully concluded saying that appropriate measures will surely help in uplifting the socio-
economic status of the female labours all around.
Saran, A. B. and Sandhewar, A. N. (1990), in their book, “Problems of Women Workers
in Unorganized Sectors”, discussed the problems of women workers engaged in unorganized
sector. It was revealed by their study that the women were exploited, low paid, worked for
long hours i.e. 14-16 hours in case of migrants and 8-10 hours in case of local workers. There
prevailed mass illiteracy, belonged to scheduled castes, scheduled tribes and backward classes
and indebtedness was common. Further, rebuking, cheating, threatening, beating and sexual
abuses were a common feature reported by women working in unorganized sector.
Singh, J., Pandey, R., and Singh, A. (2002), in their research work published in the form
of book contributed on the subjects like sex discrimination in employment, socio-economic
status of women workers in unorganized sector etc. They have taken a comprehensive review
of the status of women workers in the unorganized sector. They have pointed out the problems
of women workers in particular based on a comprehensive study undertaken in some selected
unorganized sectors. Some typical problems like illiteracy, lack of education, lack of skills,
unavailability of training facilities, improper working conditions, workplace harassment, poor
treatment and relationships, low wages, lack of financial assistance, no social security benefits,
no protection of laws, gender discrimination are highlighted in their writing. After through
discussion on to the problems of women workers, at the end they sum up with remedies and
also thrown the light on to the future prospects.
Dr. Dave, Vandana (2012), in her research which was carried out with respect to 350
women labours in construction, agriculture laborers and domestic helpers working in the
unorganized sectors from urban and rural areas of three districts of Haryana i.e. Panipat,
Kaithal and Kurukshetra, attempted to understand the socio-economic condition of women
laborers, nature of their work, their working conditions, wage pattern, wage discrimination and
other difficulties faced by them at their work place. According to her, varied reasons could be
assigned for the existing deplorable state of affairs of women in unorganized sector. It is
mainly due to a segment working against women in labor market. Besides lack of organization
in terms of forming trade unions among female workers, adverse impact of technological
growth on women labour, absence of purposeful human resource development policy on
improving women’s employability through training, inadequate legislation and ineffective
INCON - XI 2016 165

enforcement of safeguards to protect female workers, particularly in terms of their working
conditions etc. are few of the major causes leading to pitiable condition of women workers. In
conclusion she expressed that under these existing conditions it would not be out of context to
say that the government should make efforts to improve their working conditions in terms of
occupational safety, working hours, payment of adequate wages to them so that the women
workers engaged in unorganized sector of employment may have mandatory decent and
dignified work.
Dr. Singla, S. K., Bala, P. and Kumar, S. (2014), in their research paper made an attempt
to throw light on to the socio-economic conditions of female migrant construction workers
from Paunjab. The study was primarily concentrated on the migrant women construction
workers in Ludhiana city of Punjab State. The survey was conducted in four zones of the city
and through stratified sampling 200 respondents has been interviewed. During the discussion
they expressed that the situation of the workers in construction industry is not very much
different from other unorganized sector workers. The workers in construction sector are not
enjoying the same benefits as enjoyed by that of organized sector. The socio-economic
conditions of unorganized sector workers are deplorable as they are deprived of many social
security benefits. The situation of female workers is even more critical than male workers.
Finally, they have suggested some useful suggestions as the remedies for overcoming the
difficulties and problems in the implementation of which the employers, the government, and
NGOs have to play a definite role.
1.4 Statement of Problem:
It is an open truth that working women have to face problems just by virtue of their
being women. They are the most neglected part of the workforce in India. They are facing
several problems. No doubt both state and union governments have renewed their gusto for
securing comprehensive welfare of the labours from unorganized sector. But still there is a lot
of scope to do some constructive work for them.
As this particular class constitute the larger part of the working population and is the
mainstream of economy it become necessary to analyze their problems and throw light on
future prospects for them. In the Konkan region women working in fruit processing units
(units doing processing on locally available products like alphanso mango, cashew nut, kokam
etc.) are also undergoing through the various problems. It is important to provide a platform
for discussion on their problems and prospects. Therefore, this research paper on the study of
working conditions and problems of women workers in fruit processing units is quite justified.
1.5 Objectives of Study:
This paper is an attempt –
 To study the profile of selected fruit processing units in Ratnagi taluka.
 To study the profile of women workers in fruit processing units.
 To study and analyze the working conditions in fruit processing units.
 To study and analyze the problems of women workers in fruit processing units.
1.6 Hypothesis of Study:
The hypotheses to be tested are -
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 Majority of women workers in fruit processing units have to work under poor working
conditions and with inadequate facilities.
 Women workers in fruit processing units have both social as well as economic problems.
1.7 Methodological Approach:
For accomplishing the above mentioned objectives and testing of hypothesis so laid
down, both primary and secondary data is collected. The research work is the exploratory in
nature, mainly based on primary data which is collected through personal interviews with
women workers and observations during the prescheduled visits to selected units. Secondary
data is obtained from the authentic documents and websites.
1.7.1 Area of Study:
The study is confined to selected fruit processing units in Ratnagiri taluka of Ratnagiri
district from Konkan region of the Maharashtra state.
1.7.2 Period of Study:
The study is conducted during the period of March 2014 to September 2015 which
covers two seasons consecutively
1.7.3 Sources of Data:
For this research work exploratory methodology is used supported by interviews and
observation techniques.
 Primary Sources – Women workers is the main respondent in the study universe who has
rendered the primary data through a pretested interview schedule. Additional
information of primary significance is collected from the observations during the actual
visits to the units.
 Secondary Sources – The secondary data necessary for completion of the research is
collected from the published sources. For getting additional insight into the subject
internet is also used.
1.7.4 Sample Design:
In order to draw samples of fruit processing units for the purpose of study, stratified
and systematic random sampling method is used. The units are grouped into two broad
categories i.e. mango canning, and cashew processing. Further they are grouped into
household units, small-scale units, co-operative units, and private limited company. The study
universe comprises of 56 mango canning and 31 cashew nut processing units in total. Out of
which 05 mango canning and 05 cashew processing units falling under the category of
household units as the number of women workers working in these units is very less compared
to other types of units; and 02 each for mango canning and cashew processing units are
selected from the remaining categories. For the purpose of interviews a sample size of 25
women workers each working in mango canning and cashew processing units falling under
each of all the four categories is drawn by adopting convenient and quota sampling technique.
Hence, the total number of women workers is 200 i.e. 100 women workers in mango canning
and 100 women workers in cashew processing units.
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1.8 Scope and Limitations of Study:
The present research work, in fact, is an exploratory investigation. The geographical
scope of the study is confined to the boundaries of Ratnagiri taluka. The topical scope is the
study of working conditions and problems of women workers in fruit processing units. The
analytical scope is the fulfillment of the predetermined objectives and testing of the hypothesis
laid down for the study. The functional scope is restricted to drawing a set of some meaningful
conclusions.
2. Discussion and Results
2.1 Profile of Fruit Processing Units:
An official Census 2011 detail of Ratnagiri, a district of Maharashtra has been released
by Directorate of Census Operations in Maharashtra. In 2011, Ratnagiri had population of
16,15,069 of which male and female were 7,61,121 and 8,53,948 respectively. Out of the total
Ratnagiri population as per 2011 census, 16.33% lives in urban area. In total 2,63,723 people
lives in urban area of which males are 1,30,908 and females are 1,32,815. About 83.67 %
population of Ratnagiri district lives in rural area. In total 13,51,346 people lives in rural area
of which males and females are 6,30,213 and 7,21,133 respectively. These figures suggest that
the percentage of women is more comparing to male. Similarly the proportion of working
women is also more in both the areas. If it comes to the fruit processing industries operating in
the district the same scenario can be seen. According to the official statistics of District
Industrial Centre, Ratnagiri total number of registered manufacturing units in the district is
220 in all. Out of which 98 are mango canning and 122 are cashew processing units. The total
manpower engaged in these units is 2,041. Out of which 1,024 workers are working in mango
canning and 1,017 are working in cashew processing units. And out of the total workforce,
about 83% of the workers are female. So, female workers constitute a larger portion of the
total workforce engaged in the fruit processing units under consideration.
The units which are selected for the purpose of study are from household units, small-
scale units, co-operative units, and private limited company. The total number of units from
each category operating in Ratnagiri taluka is as follows.
Sr. No. Category Mango Canning Cashew Processing Total
1 Household Units 45 22 67
2 Small-scale Units 07 04 11
3 Co-operative Units 02 03 05
4 Pvt. Ltd. Company 02 02 04
Total 56 31 87
Source: District Industries Center, Ratnagiri.
The household units engaged in mango canning, cashew processing, and manufacturing
of some other products holds capacity which ranges from 6-8 M.T. to 70-80 M.T. depending
upon the investment made. And the workers working in these units are ranging from 9-10 to
60-70. However, the manufacturing capacity and number of workers employed in small-scale
units, co-operative units are moderate. And private limited companies from the study area
have manufacturing capacity to the extent of 10,000 M.T. and are employing about 200
employees to the maximum. About 60%-70% of the household units are run for the period of
INCON - XI 2016 168

8-9 months in a year, while small-scale, co-operative and private limited companies are run
throughout the year.
2.2 Profile of Women Workers:
The women workers working in the units under consideration are coming from both
urban and rural areas. About 66% of the total women workers employed are from rural area
and remaining 34% is from urban area. Out of 200 women workers 153 i.e. 77% are unskilled
labours and remaining 47 i.e. 23% are working as semi-skilled labours. Considering the level
of literacy and education, about 83% of the women workers i.e. 166 have not completed their
education up to 10th standard, 13% i.e. 26 have studied up to 12th standard and remaining 4%
i.e. 08 are graduates. From the total number of women workers about 79% are married, 16%
are unmarried, and 05% are widow. Age group wise classification women workers is 18-30
years 09%, 31-40 years 36%, 41-50 years 42%, and remaining 03% above 50 years of age.
Majority of them i.e. 74% are working for supporting their family, 12% are because of poverty
and remaining 14% for other reasons like husbands not working, rear children etc.
2.3 Working Conditions:
After getting insight into the working conditions and the level of satisfaction the
following facts are found.
Parameter Highly Satisfied No Opinion Dissatisfied Highly Dissatisfied
Satisfied
Safety Measures 28% 06% 04% 059% 03%
Health Measures - 28% 04% 66% 02%
Welfare 28% 05% 04% 63% -
Measures
Other Issues 08% 28% 04% 60% -
From the table it can be interpret that majority of women workers are dissatisfied with
the working conditions. However, the percentage is more in household and co-operative units
and it is less in small-scale and private limited companies. During the visits it is also observed
that working conditions in small-scale to some extent and in private limited companies to the
maximum extent are quite good. It does not mean that they are worst in household and co-
operative units but it is not up to the level of satisfaction.
2.4 Social and Economic Problems:
After making through analysis of the problems which women workers are facing the
following facts are found.
Nature of Problem Yes No Can’t Say
Social 89% 08% 03%
Economic 88% 09% 03%
From the above it can be interpret that majority of women workers are facing certain
problems which are of social and economic nature like mental or physical stress, dual
responsibility, no job security, exploitation, excessive work, wage discrimination, low wages
and delay in payment of wages, no social security benefits, lack of training, improper
treatment etc.
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3. Testing of Hypothesis
In order to test the hypothesis which are laid down at the beginning of the research this
work data so collected is analyzed systematically and after taking into account the
interpretations mentioned above it can be said that both the hypothesis which are descriptive in
nature are proved.
4. Conclusion
Finally, the discussion on to the research work can be concluded by saying that
majority of the women workers working in fruit processing units are working in poor and
unsatisfactory working conditions. There is inadequacy in terms of health, safety and welfare
facilities to be made available to the women workers working in these units. However, the
conditions are somewhat satisfactory in private limited companies. Out of the various units
visited there are only one or two good exceptions. Problems of women workers are more or
less similar to that of other industries or manufacturing units comes under unorganized sector.
To sum up it is to be said that, with increase in the number of fruit processing units the
working population will also be increase and women workers will continue to suffer.
Therefore, there is a need to take proper measures on the part of employers, and the
government as well. Both statutory as well as voluntary measures will work in combination to
improve the situation.
5. REFERENCES:
An exhaustive literature including Ph.D. thesis, M. Phil. dissertations, research papers
and articles, books and authorize websites etc. referred during the research work. It is
systematically produced as follows.
[1] Dr. Tessy, Kurian, (2000). ‘A Study of Women Workers in the Plantation Sector of
kerala’. Mahatma Gandhi University, Kerala.
[2] Dr. Waghela, S. S., (2013). ‘A Study of Women Employees in selected Small-
scale Industrial Units with special reference to Kalyan-Dombivali MIDC area
in Thane District’. SNDT University, Mumbai.
[3] Mrs. Kadam, S. S., (1995). ‘Female Vegetable Sellers in Kolhapur Mandaies: A
Critical Study of Social and Economic Plight’. Shivaji University, Kolhapur.
[4] Mrs. Raagini Eshwar, (2012). “Globalization and Socio-Economic Status of Female
Workers in Traditional Small Scale Industries of Jaipur City”. IIS University, Jaipur.
[5] Saran, A. B. and Sandhwar A. N., (1990). “Problems of Women Workers in
Unorganized Sectors”. Northen Book Centre, New Delhi.
[6] Singh Jawaharlal, Pandey Ravikumar, and Singh Arunkumar, (2002). “Women in
Unorgainzed Sector: Problems and Prospects”. Sunrise Publications. ISBN:
818736503X, 9788187365037.
[7] Dr. Dave Vandana, (2012). “Women Workers in Unorganized Sector”. Women’s Link.
Vol. 18, No. 3.
[8] Dr. Singla, Surinder Kumar, Bala, Poonam, and Kumar, Sanjeev, (2014), “Socio-
Economic Conditions of Female Migrant Construction Workers in Indian Punjab: A
Case Study of Ludhiana City”. Asian Journal of Research in Social Sciences and
Humanities. Vol. 4, Issue 7, Online ISSN: 2249-7315.
[9] www.mahades.maharashtra.gov.in
[10] www.disrtn.gov.in

INCON - XI 2016 170

Internship for Management Students: Ways to Make the Internship

Effective and Interesting
Approach for Intern’s Training & Development
Col Virendra Kumar T Mishra Ms Swapnisha Khambayat
Former Director MIS Org, IA Assistant Professor
MPM (IInd Year), ASM’s ASM’s IBMR, Pune
ASM’s IBMR, Pune Univ swapnishakhambayat@asmedu.org
vktmishra@gmail.com
ABSTRACT:
Internships are important sources of learning and experience for management
students and offer a low risk way for employers to both select full-time talent and meet
short-term staffing needs. Internship is not only the learning tools but also a good
chance for college students to understand the workplace culture and his or her future
working role within the organization. Internship opportunities in India are career
specific. College students often choose internships based on their branch of study.
Students perceive it as a way to develop their capabilities by practically applying their
degree while learning in a professional work environment. Most students apply for
internships during their summer and winter breaks. In some universities, internships
during the college breaks are compulsory and a part of the curriculum. It is common
that previous interns would become employees to the organization once they have
acquired the necessary skills and experience. The industrial infrastructure at Pune offers
a huge opportunity for students of B schools to get exposure in almost all spheres of
business management. However lack of clarity on the part of the students, inadequate
guidance and planning, at times may result in the internship becoming just an academic
formality. Internships provide a link between academic learning and professional
employment. Hence students need to optimally utilize the opportunity to enhance their
knowledge base and communication skills. The paper brings about the aspects which an
intern, the employees and academic institutes need to deliberate in order to optimally
and effectively utilize the opportunity for development of the management students, the
prospective employee of the companies
Keywords: Summer internship, expectations of interns, and responsibilities of interns,
employer’s role, and academic institute’s role
I Introduction:
An internship is an on the job training for white-collar and professional careers.
Generally, an internship consists of an exchange of services for experience between the
student and an organization. Students can also use an internship to determine if they have an
interest in a particular career, create a network of contacts or gain school credit. Interns may
be college or university students, high school students, or post-graduate adults. These positions
may be paid or unpaid and are usually temporary. Some interns find permanent, paid
employment with the organizations for which they worked. This can be a significant benefit to
the employer as experienced interns often need little or no training when they begin regular
employment. Unlike a trainee program, employment at the completion of an internship is not
INCON - XI 2016 171

guaranteed. An intern need to prepare him/herself well, before and during the internship to
utilize the available opportunities to enhance the skill and competency.
II OBJECTIVE OF THE PAPER
Internships can be an invaluable learning experience for new graduates and employers
alike, but it takes a conscious effort from both parties to make it successful. In fact the college
faculty and the placement cell can play a great role in effectively managing and helping the
students in the internship program. In light of this the main objectives of this paper is to
(a) Study and understand the requirements of the stake holders involved.
(b) Bring out the benefits of internship and expectations from an intern to be successful.
(c) Suggest ways to enhance effectiveness of internship.
III Methodology
The paper is based on information is based on.
(a) Secondary sources such as journals, magazines, annual reports, websites etc.
(b) Primary sources in terms of interviews with students who have undergone internship,
faculty guides from a Business Management college and employers have been used for
getting their point of view, recommendation and suggestions.
IV Internship
Internships provide real world experience to those looking to explore or gain the relevant
knowledge and skills required to enter into a particular career field. Internships are relatively
short term in nature with the primary focus on getting some on the job training and taking
what’s learned in the classroom and applying it to the real world. Interns generally have a
supervisor who assigns specific tasks and evaluates the interns overall work. Each year
students thousands of students gain experience by doing summer internships. Internships
provide a link between academic learning and professional employment. lnternships exist in a
wide variety of industries and settings. An internship may be paid, unpaid, or partially paid (in
the form of a stipend). Stipends are typically a fixed amount of money that is paid out on a
regular basis. Usually, interns that are paid through stipends are paid on a monthly basis. Paid
internships are common in professional fields including medicine, architecture, science,
engineering, law, business (especially accounting and finance), technology, and advertising.
Non-profit charities and think tanks often have unpaid, volunteer positions. internships may be
part-time or full-time. A typical internship generally lasts between 1 and 4 months. Important
types of internships are:
 Work experience internship: Most often this will be in the second or third year of the
school period. The placement can be from 2 months to one full school year. During this
period, the student is expected to use the things he/she has learned in school and put
them into practice. This way the student gains work experience in their field of study.
The gained experience will be helpful to finish the final year of study.
 Research internship (graduation) or dissertation internship: This is mostly done by
students who are in their final year. With this kind of internship a student does research
for a particular company. The company can have something that they feel like they need
to improve, or the student can choose a topic within the company themselves. The
results of the research study will be put in a report and often will have to be presented.
INCON - XI 2016 172

 Another type of internship growing in popularity in some countries is the virtual
internship, in which the intern works remotely, and is not physically present at the job
location. It provides the capacity to gain job experience without the conventional
requirement of being physically present in an office. The internship is conducted via
virtual means, such as phone, email, and web communication. Virtual interns generally
have the opportunity to work at their own pace
Internship opportunities in India are career specific. College students often choose
internships based on their branch of study. Students often perceive it as a way to develop their
capabilities by practically applying their degree while learning in a professional work
environment.
Most students apply for internships during their summer and winter breaks. In some
universities, internships during the college breaks are compulsory and a part of the curriculum.
It is common that previous interns would become employees to the organization once they
have acquired the necessary skills and experience.
Internships are periods of short-term, temporary work. They usually last for a few weeks
or maybe months. They have possibilities for further growth and they both take the private and
the public sector of companies. Many people practice the internships with working in a
particular role and helping their career to grow in the particular field. Internships are initial
phases of many careers and definitely prospects for further growth, started with beneficial
training.
Academic programs tend to be fairly theoretical for the most part. A management
internship allows students to break away from it and get back into the corporate world to try
out some of the fantastic concepts they’ve learnt in the business school class. Then they head
back into the classroom to finish the rest of the MBA program.
V Need for an Integrative Approach
Internship is a mandatory requirement in most of the universities as it helps students in
comprehending and understanding the theoretical concepts by seeing it being applied on
ground and practicing themselves as an intern during their internship. Individual factors,
university support, job characteristics and organizational environment are imperative factors
contributing towards internship satisfaction. There is need to follow an integrated approach for
enhancing the efficacy of this training methodology. Various skills report both at National and
at International level indicate the vast skills gaps in the required and the existing skills among
the management students. Barely 15-20% students meet the requirement of the industries as
far as the skills is concerned. Hence it is imperative that there is close interaction between the
industry, the University (management college staff ) and students bodies to ensure that the
requisite requirements of each other are well understood.
INCON - XI 2016 173

Fig 1. Integration of Needs/Requirements

It is pertinent that both employers and potential employees have a consensus on what are
to be instilled in the learners as this would prepare them for the actual practices. The
placement and counselling cell in the academic establishment may act as the bridge between
the internee and the
Industries. There is need to amalgamate the qualitative and quantitative needs of the all
stakeholders viz students, employee and the university requirements.
VI Requirements/Needs of Internship
Students’ need
 Internship for enhancing own skills by applying theory in to practical job.
 Help from college in selection of internship industry
 Proper allocation of training time, program and trainer in the respective
Employer/Industry Requirement
 Dedication and committed attitude of the internee
 Keenness to learn
 Disciplined conduct
 The candidate should be meeting at-least the basic minimum capability and be trainable
College Support or Requirement
 Keep abreast with the academic curriculum and skills required by the industry.
 Skilling of students
 Updation of industry database
 Liaison with industry to ensure all students get internship
University Requirement
 Internship duration
 Report submission
 evaluation
VII Benefits and Advantages of Management Internships
Internship programs help immensely the students, the colleges and the concerned
companies. Some of the benefits accrued to them are as listed under.
INCON - XI 2016 174

 Opportunity to students to get middle management industry exposure.
Provide a platform for hands on experience to any B School student to experience the
middle management experience in real industry scenario. This exposure becomes even more
important for freshers, who have never worked in the industry earlier.
 Helps to enhance Confidence level of the intern
Practice makes perfect. If you’ve learned about a specific technique in the classroom,
you’re able to test it out in the world of work. Then, you’ll be much more equipped with the
technique.
 Indicator of Final Placements
Act as a good indicator of Industry mood and its acceptance in the current year for the
respective B School.
 Feedback from Industry

Summer Internships also provide an opportunity for the B School Placements cell to get
feedback from industry about their expectations and how are they perceiving the students from
respective B School, what are their expectations, what kind of profiles will they prefer among
the students, and more. This enables Placement Teams to ensure that students are well
prepared and in sync with the industry expectations.
 Status of the B colleges is reflected in the internship and placements
The competitive environment for private B Schools where admission in the next year
depends on their placement figures of the current year plays an important role for the colleges
in putting the extra effort. Summers is the chance where the schools start up their relationship
with companies and being the early bird can put them at great advantage.
 Extended Recruitment base for the companies
These days the testing and training of students start right from the summer internship so
that the companies are more assured of getting the products that fit the company needs as soon
as they graduate from respective B Schools. This has increased the expectations from students
when it comes to their Summer Internship Preparation.
 New perspective on organizational issues.
Interns challenge “the way we’ve always done it” mentality and bring fresh, new ideas
to the company. Interns are good at questioning processes and can often see a better way of
doing things that a manager might not.
 Skill sharing
Internships allow experienced professionals the ability to share their skills and cultivate
the next generation of leaders in their field.
 Corporate social responsibility (CSR).
Internships provide a great way to meet CSR targets by engaging with young people and
providing them with valuable experience in a professional environment.
 New skills.
Internships are a great way to bring fresh ideas and new perspectives into your
organization. Technology is always changing and graduates are in the privileged position of
having gained the most up-to-date knowledge available
VIII Factors Which Are Likely To Impact Efficacy Of Internship.
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There are several factors which may impact the efficacy and usefulness of the
internship which ultimately affects the satisfaction derivable from the internship. The factors
are as listed under.
Individual factors
 Academic preparedness
 Positive attitude
 Self-initiative
Support from college
 Selection of internship company
 Guidance in selecting the type of internship
 Objective formulation
 Report writing
Job characteristics
 Relevance of the task to the branch or specialization
 Task significance
 Skill variety needed
 Challenges
 Autonomy
 Feedback
Organizational environment
 Task clarity
 Objective setting
 Supervisory staff attitude
 Learning opportunities
 Professional growth
 Training/ internship structuring
 Support for report writing
Contextual Factors
 Work hours
 Commuting
 Location
 Stipend
IX Role for Online Massive Online Open Courses
Massive open online courses – or Moocs – are web-based classes that offer students self-
paced learning in their subject of choice. Massive Open Online Courses (MOOCs) have been
touted by some as the breakthrough that will transform education. Top universities such as
MIT, Harvard, and the University of California at Berkeley are scrambling to make their
lectures available online. A large number of courses are being offered almost free of charge.
INCON - XI 2016 176

Few universities charge for the certification however most of them provide the certificate of
completion.
An intern may undertake are/subjects of his relevance in which he has taken up the
internship. These online courses available to the students on his mobile phones, laptops etc.
and intend to upgrade you to the global standards. While undergoing the internship, to
enhance and improve their soft skills they can take up such courses and practice during the
internship. Thus course of 2-3 months duration requiring a weekly study of 5-6 hours may be
of following category
Fig 2. MOOC at a Glance

 Soft skill upgradation related
 Specialized course/subject of your area of specialization
Thus in addition to the internship report, field exposure one can earn a certification also.
XI Suggestions from Interns
Internship report of management students of different specialization was reviewed.
Recommendations, suggestions and lessons learnt from Interns were analyzed. Major points
which emerged out of these are as under.
 A short workshop be conducted in the college where various aspects of internship be
deliberated at the start of the semester.
 Feedback and lessons learnt report by previous interns be discussed and informed during
the workshop
 A comprehensive database of companies offering internship be prepared and updated in
the placement cell for guidance
 Updated information about internship schemes of various government agencies, NGOs
etc be shared regularly.
 Interactive guidance session be organized with the industry HR persons to share the
expectations of all involved.
INCON - XI 2016 177

XII Conclusion
Internships are arrangements in which college students lend their talents to companies in
return for an opportunity to develop business skills and gain exposure to the work
environment. Internships are seen by college students as potentially valuable tools to explore
general career avenues as well as specific companies. Such arrangements can provide them
with valuable work experience (both practical and for résumé enhancement) and an
opportunity to line up a job before graduation. Internship programs are also potentially
valuable to employers. Unfortunately, some companies continue to regard interns as little
more than a free source of labor to catch up on filing and other tedious office tasks. But many
business owners and managers realize that internship programs can provide them with an early
opportunity to gauge the talents of a new generation of workers and, in many cases, sell
themselves as a quality place for students to begin their careers after they graduate.
XIII Recommendations
Steps to Become a Successful Intern
Internships are important since you are provided with the opportunity to learn and gain
experience. Use this as an opportunity to explore and learn so you are prepared for the
corporate world when you graduate. Since the professional world can be very different from
university life, it is important that you have an understanding of some of the differences Make
an effort to shine and constantly challenge yourselves.
 Always be in time and Practice good time management. Always be on time at right
place. Be organized, and seek help of the manager in planning the time management for
the task in hand.
 Dress as per the occasion and the job. Dress for the position you want, not the one you
have. It is better to be known as the best dressed intern, than to be known as the one who
is too casual. First impressions are very important, as is maintaining good ones. It is
important for you to dress, speak, write, and generally behave like a professional. Shake
hands, make eye contact, smile, and be friendly and confident
 Treat the internship like a real job. If you want the employer to take you seriously,
you need to take the job seriously. Regardless of the pay, treat the internship like the real
job. Clarify expectations about the internship: both the employers and yours. It is a good
idea to agree upon your job responsibilities in writing.
 Do not hesitate to ask questions for clearing doubts. Don't be afraid to ask questions
and step outside your comfort zone, Schofield says. This shows that you're willing to
learn and have a genuine interest in the job and company.
 Be respectful, polite and flexible. Respect your colleagues, peers and company staff .
People, and organizations, have different thinking and communication styles and various
ways of doing things. You have to adapt and adopt the company’s culture.
 Enhance your network. Utilise the opportunity to build as many quality relationships
in your internship as possible. The more colleagues know you and what your capable of,
the more support you will have once it's time to turn your internship into a full-time job.
 Find a mentor who is willing to help your career growth, perhaps the most
beneficial learning experience. Learn everything you can from this person. Use this
INCON - XI 2016 178

mentor as a resource for questions and learning new skills. Refer to your mentor for
advice (especially during hardships).
 Seek help of the supervisor and your guide in setting quantifiable SMART
objectives and goals. Be curious. If you are unsure of something, ask for clarification.
Make sure you know what needs to get done and when. Ask questions about your
department and the overall business.
 Improve your communication skills and Communicate with your team.
Communication skills play an important role in mangers’ life. Analyze your weaknesses
and make efforts to improve it. Keep your managers informed on your progress with
current tasks. Let your team know of any hardships you are facing, perhaps they will
have a suggestion. Focus on your communication skills, both written and verbal. When
communicating with your coworkers choose respectful, tactful, and professional
language at all times.
 Take initiative, but accept guidance. "Volunteer, within reason," Schofield says.
Employers will be impressed if you're eager to help - but don't simply sign up for
everything. "A few jobs done well is better than twice as many done badly, or not
finished."
 Keep documenting the activities you were involved and your accomplishments. It
would be worthwhile to maintain a diary of daily activities. For the benefit of future job
applications, immediately begin keeping track of specific facts and figures about your
performance.
 Request your supervisor to keep giving you corrective feedback and ask for
comprehensive feedback from the organisation. As an intern, you may not have a
formal review until the end of the summer - so it's important to ask for feedback on a
regular basis. When you leave, be sure to ask your supervisor for a letter of
recommendation and keep in touch so that you can call upon him/her later when you are
in need of a reference. This will also help your supervisor keep you in mind when future
opportunities arise.
Recommendations For Deliberation
Internships can be an invaluable learning experience for new graduates and employers
alike, but it takes a conscious effort from both parties to make it successful. Infact the college
faculty and the placement cell can play a great role in effectively managing and helping the
students in the the internship program. Inview of this following is recommended for the
colleges to deliberate.
 Whether it’s governmental organizations like the RBI, companies or NGOs, many
organizations have internship programs. Researching them early enough by checking
their websites and Facebook pages will help in updating the database about the
companies.
 Regular interaction by placement cell with companies will help create large pool of
companies for allocating internship to all students.
 Every department of the management institute nominate a faculty who should
coordinate (may be through the placement cell) with the companies for internship
programs.
INCON - XI 2016 179

 Proper counselling and preparatory action be taken for students for the internship.
Faculty guide can help students to develop learning goals, structuring academic
reflection for the internship, and monitoring the student’s growth and learning
 Requirements of the companies and capability assessment of the students be considered
and accordingly internship be allotted to the students.
 Regular interaction between the faculty guide and the students would ensure in timely
resolution of issues if any.
 Faculties need to assist the student in completing internship paperwork, defining the
learning objectives, assigning appropriate academic components, and determining
evaluation methods.
 Interns be encouraged to pursue online open courses available for free with certification
in the areas of the internship training. Such courses have global outlook curriculum
which would help broaden the horizon of the students.
 Proper feedback from students and companies be obtained about future improvements
and for interventions by the college where required.
 The college can create/establish Online learning infrastructure and register itself as an
MOOC outlet to facilitate students easy and guided access with certification from
college too.
XIV REFERENCE:
[1] https://en.wikipedia.org/wiki/Internship
[2] http://internstars.co.uk/useful-internships-tips/the-difference-between-internships-and-
apprenticeship-2283/
[3] http://www.mbacrystalball.com/blog/2013/10/21/how-mba-internships-work/
[4] http://www.careeranna.com/articles/5-reasons-why-mba
-summer-internships-are-important/
[5] https://www.looksharp.com/guides/ten-tips-to-effectively-manage-interns
[6] http://www.wikihow.com/Become-a-Successful-Intern
[7] 15 Things Interns can do to standout http://www.businessinsider.in/15-Things-Interns-
Can-Do-To-Stand-Out/articleshow/35733481.cms
[8] https://career.berkeley.edu/Internships/IntTips
[9] Exploring MBA Internship Effectiveness: Intern Goals and Outcomes by Gerard Beenen,
GMAC ® Research Reports • RR-08-01 • February 7, 2008
[9] Internship Satisfaction: A Preliminary study On Undergraduates From The Faculty Of
Business And Finance Of Universiti Tunku Abdul Rahman By Ch’ng Phui Jean And
Others, Mar 2002, Http://Eprints.Utar.Edu.My/616/1/Ba-2011-0905921.Pdf
[10] http://www.referenceforbusiness.com/ small/Inc-Mail/Internships.html

INCON - XI 2016 180

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CON - XI
X 20
2 16 18
81
is the need of the hour. Organizations strongly believe they need to keep continuously
learning to have a competitive edge over others in a rapid manner. Conventional training is
unable to meet the ever growing agile business needs. It’s not a luxury but a necessity to be a
Learning Organization. The first change that a Learning Organization demands is learning
every moment , on the job, through social network, through our friend google ,from
experiences of others, through exploration, by taking risks, through success and failures in the
past , by knowledge sharing, referring past repertoires, through observations, discussions and
any media that enables learning. Learning Organization was a concept coined by Peter Senge
in 1990, he mentioned Learning Organizations are “Organizations where people continually
expand their capacity to create the results they truly desire, where new and expansive patterns
of thinking are nurtured, where collective aspiration is set free, and where people are
continually learning how to learn together.” These organizations act ahead of their
competition. They constantly create markets, products and offer services and state of art value
to the customers and stake holder. According to the literature study, a learning organization
is the term given to a company that facilitates the learning of its members and continuously
transforms itself. Organizations who do not become Learning Organizations become stagnant.
A classic case of Nokia as the leader in Mobile technology , in the early days had eaten
up the market due to its user friendly mobile devices, it failed to learn on its way and was
contented with the success achieved due to which got beaten up when smart phone era came in
. Players like Samsung swept the market and Nokia was out of place. Nokia could not keep up
with the customer demand, did not fore see the future and could not align with the new trend.
Sustainable growth and increasing profitability comes with continuous learning.
Training Vs Learning:
Training is something which is enforced by an external agent on identifying the skill gap
required to work on a project assignment. Thus it mandates either the skill gap to trigger it or
someone else to highlight the need. The ownership is not with the person taking the training
but on the facilitator and the initiator. Training is provided FOR employees whereas learning
is initiated BY the employees.
Learning is a 360 degree shift, as the responsibility of the learning resides on the
shoulder of the learner. It is led by hunger for knowledge, inherent passion, and curiosity to
learn something new, explore the uncharted areas, accept challenges, make mistakes and learn
from them. Such learners identify opportunities for improvement, develop the ability to think
out of box, take a holistic view of situation, identify the problems and keep finding newer
ways to resolve them. It’s all about ownership.
While difference between training and learning is elaborated above, there is no intention
of undermining the essence of training. The objective is to understand the business needs and
situations in today’s context and prepare the taskforce for learning on the fly, learning on
demand, building their skill and competency, take the ownership of learning and move on as
this is the only means of enhancing the competitive edge that an organization could have, rest
all can be duplicated. Training primarily is a reactive solution to present needs, rather than
building capabilities for the long term. It gives a temporary solution to do a quick fix. It does
not build the competency or knowledge within the learners, it lacks the ability to focus on
implementation that a learner has to do on job.
INCON - XI 2016 182

The world is moving at a fast pace, technology advancement demands quick
deliverables. Consider an IT service Organization where in the workforce is expected to work
on multiple technologies and domains, enhance their skill set on newer version and flavor of
technologies, get cross skilled and deliver project deliverables. The pace at which technology
is changing and the speed at which associates are expected to pick up the skills, conventional
training will never be able to meet up the needs and there would always be loss of
opportunities the organization has to bear. Training is unable to keep pace with shorter
development cycles for new products, service offerings and deliverables because of the
training lifecycle that it has to go through. The experts have to pick up the new skill, develop
the content and simulations and then deliver the same to the trainee. Today business does not
have the liberty to take extended time to ramp up the workforce on new skills. Learn quickly,
pick up the skills through whichever medium and deliver in time or before time is the success
mantra. Easier said than done but these are the current business dynamics, the customer
continues to remain demanding and if enterprises today don’t quickly assess the business need
and align their product and services to their needs they become obsolete. Look at the
challenges, on one hand customer demands deliverables on time, wants to work on the latest
technology, need competent taskforce on his project in less time and less money and on the
other hand Organizations need to have min 90% Utilization of their work force on billed
assignments and since the workforce is billed they cannot be taken out for training in a
classroom for long hours, in such cases the modern means of learning such as on job training,
learning in parts and as and when required becomes the need of the hour.
Innovation is the key and change is the only constant. There is a kind of cold war going
between Training and Learning. With enterprises becoming learning organization, workforce
is getting empowered, ecosystem is getting stronger, Organizations are investing in on-demand
and any time learning options. To a great extent these options are appealing as they are
reasonable in terms of commercial investment, provide learning content which are latest and
practical and they also give flexibility to the learner to learn as you require. The Pay per use
model offered by cloud based learning solutions is fairly economical and enables continuous
competency building at the organization level.
The yester years traditional approach of pulling billed employees out of their work situation
into classroom with a facilitator are being challenged by newer ways of learning such as
virtual learning, mobile learning, webinars, digital learning and MOOCSs.
Practically the simulations of on job training are time consuming to build, most
enterprises today have Gen Y population at the bottom of the pyramid and their retention span
is a concern and the way to captivate their attention towards learning is different. They believe
in learning capsules, any time learning, gamification, easy learning content pushed to their
mobile devices or google for solutions.
The dynamics today entails into a complete paradigm shift. It’s not about making
training effective any more but to make Learning essential. Incremental changes will not serve
the purpose but a quantum leap in terms of adopting learning as a strategy is the only solution
to all business problems today.
The paradigm shift from Training to Learning demands phenomenal change in mindset
of the learner, of the organization and the enterprise as a whole. Informal learning,
independence, individualized Learning are the changing scenarios in today’s economy.
Learning brings in a lot of ownership, responsibility, awareness of the unknown and
INCON - XI 2016 183

eventually culminates into commitment, higher productivity and work efficiency. The
eagerness to learn, breaks all the boundaries as the learner strongly believes that in the end he
will get to know the unknown, the feeling of learning something new and being more
knowledgeable gives inherent happiness to any learner and results into self-motivation,
leading to enhanced performance in all his endeavors. Similarly learning by doing is
undoubtedly the most effective method of all.
Source: http://springmd.rockyview.ab.ca/our-school/21st-century-learning
A group of co-workers had developed a hypothesis that on one particular machine, the
photo copy speed is affected by the volume of pages in that job. On the contrary the
information they had was regardless of job size the speed of the copier machine remains same.
This did not hold true for this particular machine. Thus they experimented practically by
running a voluminous job in batches on one day and then the same job was run in bulk the
other day . They could collect data to check their hypothesis and found that they were correct.
This group proactively plunged into a practical experiment which was not expected from them
and neither did they have any rewards attached. Curiosity made them to explore, they got an
opportunity to try something new and their findings resulted into increased efficiency at
workplace. They were appreciated for this their efforts.
Nurturing the ecosystem for enabling Learning in Organizations:
A shift from Training to Learning is certainly not easy because it requires mindset
change at the entire organizational level. It’s always evidenced that this change particularly
needs to be a TOP -DOWN approach meaning the Organizational stake holders need to
appreciate Learning, unlearn the old and learn the new, adapt a mindset that will lead them to
be a Learning Organization. Imbibe a learning culture and make it as the Organization’s DNA.
It demands transition from Lateral thinking to System’s thinking, have a shared vision across
the organization, shift from the traditional mental models to explorative and risk taking mental
models, promote personal mastery, create avenues for continuous learning and accommodate
INCON - XI 2016 184

room for mistakes, give a free hand to explore and innovate, reward team spirit and integrated
workforce and institutionalize knowledge management.
In all, it means create a conducive workplace to learn and grow and in return get
rewarded with higher profits, sustainable growth irrespective of business economy and
changes, USP as a recognized brand, treasure committed workforce with competitive edge and
become preferred partners by the customer.
The work place has to echo the learning culture. Learning and working go hand in hand
as one compliments the other. The environment has to be adaptive, participative, inclusive,
resourceful, supportive, simulation based and motivating to enable continuous learning. All
work assignments should constitute learning and growth in terms of skill and competency of
the work force. The organizations should foster the culture of informal learning and also social
learning. The employees should be given a free hand to choose a learning path to upgrade their
skills, undoubtedly aligned to the business requirement but which will give them an edge.
The organizations have to reward the learning culture openly to captivate the taskforce
to this practice, there has to be mechanisms for appreciation and recognition for learning.
The other two important aspects that Organizations needs to look into are: knowledge
management which has to be institutionalized as a process so learners will have ready
reckoner to refer to when they are in need and thus save on time not having to reinvent the
wheel. Second is the automation and technology advancement in having integrated systems
in place so that information is easily available for usage on click of a button. All these are
mechanics of enabling the learning culture and drawing advantages through the same.
Source: organisationallearninganddevelopment.wordpress.com
Where does the trigger for this paradigm shift come from?
There are multiple triggers which enabled this shift.
 Competitive edge: In order to be competitive organizations need to help employees
assimilate new skills and competency. Continuous learning is the need of the hour and
learning has to happen at a commendable speed and thus learning is promoted rather
than training as it needs to be done quickly which can be then implemented on the job.
INCON - XI 2016 185

 Advancement in technology and learning solutions: The advancement in technology has
made a lot of information accessible to learner outside of their organizational domain.
Innovative platforms such Mobile learning, gamification, digital learning, Massive Open
Online Content (MOOC) are available and thus learning, on demand learning, any time
learning are open to learners which brings them closer to learning new skills.
 Skilled Taskforce: There is an ever increasing demand for skilled taskforce which has
put pressure on the organizations to do talent management. The asset of any organization
is competent taskforce and the tacit knowledge that they have which is not replenish
able. Providing learning opportunities is one of the means of retaining talent.
Opportunity to continuously upgrade their skills, implement the learnings on job and
mobilizing the staff to fulfill various business opportunities have worked both ways
benefit to the organization and opportunities for the employees. This also enables
mobilization of taskforce on diverse assignments giving them a platform to learn new
skills.
Source: Bersin and Associates, 2012
INCON - XI 2016 186

To keep up the pace, retain best talent, remain competent, the only option for
organizations today is to shift from Training to Learning.
Impact of Learning on Organizational Growth:
Learning has multiple benefits, to the organization as a whole.
The three major players of any organization are the Stake Holders, the Human Capital
and the Delighted Customers.
 Stake holders: Learning culture in the organization helps in building a pool of
competent task force and this in turn gives a competitive edge to the organization.
Continuous learning results into excellent performance, improved efficiency and speed
at work by the employees which results into timely deliverables to the customer with
zero defect. These results into organization becoming preferred partners for the
customer, leading to repeat order from the existing customers and a positive word of
mouth entailing into more business which finally increases the profitability of the
organization and enables sustainable growth.
 Human Capital: An employee is always motivated by opportunities given to him or her
and the growth that he envisages from the opportunities. This also helps for an
individual to have a road map chalked out for his own self, gets clarity in terms of where
he needs to go, the current gap in his skills and thus an ownership of bridging those
gaps. Employees appreciate organizations that give opportunities and support them with
the appropriate ecosystem in terms of learning environment, support from mentors, a
chance to explore new areas and discover something new. Learning is not all about
acquiring new skills but a medium to build a new identity, be competent and align with
organizational goals for being profitable. The desire to be known for some specialized
skill, to contribute in the larger goal, to be acknowledged and appreciated for one’s own
contribution, to participate in a meaningful way certainly drives an individual to learn
things that are relevant to their environment. The literature survey very clearly states that
employees stick to the organization for long not only for monetary benefits but because
many other important reasons such as the organization culture, the learning culture, the
opportunities they get to grow, the support they get to work on lucrative opportunities
and the overall comfort they get at work place. Thus most of the learning Organizations
such as the Tata Groups and the Toyota’s have much lower attrition rates as compared to
other organizations which are only profit centric. When employees see themselves
having abundant opportunities at workplace to grow and transition from junior roles to
senior roles by virtue of developing their competency through continuous learning,
monetary gains become secondary.
In today’s economy, identity transformation through learning is of prime importance.
 Delighted Customers: The customer maturity model needs to be well understood by
organizations. Gone are the days when the customer use to be happy with desired and
expected service levels. Times have changed, they demand surprising and unbelievable
levels of service. This is possible only with high-level of competency that an
organizations Human Capital possess and thus Learning becomes essential for more
competent taskforce, improved productivity and enhanced efficiency in work
deliverables . When the organization learns continuously they keep themselves abreast
INCON - XI 2016 187

of cutting edge trends and this helps the customer to be competent and ahead of the
curve in their space.
Learning Organization inculcates the practice of informal learning such as shadowing,
discussions, handholding on job and many other methods besides digital learning and
any time learning models.
Benefits of a high-impact learning culture
Based on responses from 426 organizations, he bersin and associates study “High-
Impact learning culture : The 40 best practices for creating an empowered enterprise” found
that leadership and management play a pivotal role in learning culture and most best practices
focus on informat approaches to learning which further reinforces the need to expand the
concept of “learning” well beyond format trainng.
Of all organizations with strong learning cultures
Source: Bersin & Associates

Challenges in establishing a learning culture:
This research paper also attempts to throw some light on what are the obstacles in
imbibing a learning culture.
While enterprises do understand the importance of learning, most organizations are
struggling to become a learning organization; very few organizations are early adopters of this
framework.
Some of the key obstacles are:
 Inability to unlearn:
They carry legacy mental models reflecting authoritative culture and command. In such
organizations people are told what to do, when and how, which deprives the employees
of their freedom to learn, explore and make mistakes. Learning culture needs mindset
change from top to bottom and this becomes difficult for many organizations. Legacy
always takes precedence. Conservative culture of the organization and lack of risk taking
ability keeps them away from being early adopters of learning culture. Everyone in the
organization need to continuously learn from the peer group, the market trend, the
competitors, the customer demand and from global resources & economy.
 Step treatment to learning investments:
Learning investments are always compromised on by decision takers. It’s always an
easy item to cut out from the budgeting process. Whenever there are cost cutting
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talks learning budgets are first ones to be attacked. It’s important and high time
that organizations do not consider learning expenses as cost but investment.
 Inability to think on behalf of the employee and understand the importance of learning
for employees:
Employees of any organization look for all round benefits and facilities they get
from the organization and the most important benefit they look for is learning
opportunity leading to their growth. Employees want to be in charge of their progress.
They are in constant search of opportunities to grow and expect complete support and
ecosystem for them to explore and learn. Making the shift from training to learning
enables this sort of action. However not understanding the pain area of the employees
could be one hurdle. They seek challenging roles and assignments for their growth and
many organizations fail to do so.
Source: Bersin & Associates, 2012

Solutions to the obstacles
 Organizations have to adopt the Learning Organization concept and make learning as the
DNA of the organization.
 Inculcate leadership practices to promote learning and walk the talk
 Learning has to happen at all levels and the top management should be the first one
to embark on this journey.
 There is an inherent need to have an inclusive culture and engage employees at all
levels and percolate the learning culture, make them understand what is in it for
them.
 A robust ecosystem should be built for the learners to learn with ease and planned
investments are required for inculcating a learning culture.
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 There has to be reward and recognition for learners who proactively learn ,
upgrade their skills , become competent and enable the organization to achieve
business goals, profitability and sustainable growth
 A 360 degree paradigm shift is required by the entire organization to become a
learning organization.
 Explorative culture, room for mistakes, reward for new learnings rather than
reprimanding mistakes and failure should be the culture.
 Reflection on the past, improvement for the future should be the strategy of any
organization.
Two sides of the same coin:
 While learning culture is inevitable in today’s economy, learning also has some lacunae.
 There is much advancement in the learning space which enables the learner to learn any
time anywhere but the real time contact hours with peer learners and facilitator which
becomes essential in many areas are unavailable through learning.
 Learning can be less structured as compared to training.
 The type of business also dictates the learning methodology many a times thus may not
be applicable always.
 Learning needs to be measured rightly to see the benefits which could become
challenging due to lack of structure.
 Effectiveness of the learning culture needs governance to ensure business gets the
benefit.
 Learner may not be not be able to adopt the right learning mode at times and may get
bogged down
 Taskforce who prefer training may not appreciate the unstructured or informal mediums
of learning also depends on learning styles of an individual.
 There is a possibility of gap in what is necessary to learn and what is actually learnt
 Learning makes employees more competent and seeked for by the competitors and thus
if organizations are unable to give implementation platform for the learners post learning
activities and right opportunities, they may lose talent to the competitors.
 Understand the best practices; learn from customers, the market trend, business needs,
from globalization perspective and other socio economic factors.
Case study:
Xerox has mastered skill of problem solving through a model. This was based on the
reflection they did on their past failures and collectively getting into a group, brainstorming
and adopting the learning culture from past mistakes and imbibing systems thinking within the
group. In 1983, senior managers launched the company’s Leadership through Quality
initiative; since then, all employees have been trained in small-group activities and problem-
solving techniques. Today a six-step process is used for virtually all decisions.
Step Question to be Expansion/divergence Contraction / What’s needed
answered convergence to go to the next
step
1. Identify and What do we Lots of problems for One problem Identification of
select want to change consideration statement, one the gap “Desired
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Step Question to be Expansion/divergence Contraction / What’s needed
answered convergence to go to the next
step
problem ? “desired seate” scare” described
agreed upon in observable
terms
2. Analyze What’s Lots of potential causes Key cause(s) Key cause(s)
problem preventing us identified identified and documented and
from reaching verified ranked
the “desired
scare”
3. Generate How could we Lots of ideas on how to Potential solutions Solution list
potential make the change solve the problem classified
solutions ?
4. Select and What’s the best Lots of criteria for Criteria to use for Plan for making
plan the way to do it ? evaluating potential evaluating solution and monitoring
solution solutions agreed upon the change
Implementation and Measurement
evalusion plans criteria to
agreed upon evaluate solution
effectiveness
5. Implement Are we Implementation of Solution in place
the solution following the agreedon contingency
plan ? plans (if necessary)
6. Evaluate the How well did is Effectiveness of Verification that
solution work solution agreed upon the problem is
Continuing problems solved or
(if any) identified Agreement to
address
continuing
problems
Source: https://hbr.org/1993/07/building-a-learning-organization by David A Garvin
Conclusion:
 Learning is all about building capabilities for the future and being ready.
 Continuous learning at all levels of an enterprise enables competency building and
allows the organization to build a high agility quotient.
 Learning culture is a mark of competitive advantage and enables talent management.
 Learning aligned to business needs will yield increase in profitability, sustainable growth
and an edge over others.
 Building an ecosystem to inculcate learning culture is the need of the hour.
 The shift from training to learning is thus a progressive movement towards building
overall capability of the taskforce.
Recommendations:
 Learning culture has to be a part of the organizational strategy
 Commitment toward continuous learning should be reflected at all levels
 Organizations should embrace technology to foster a learning culture
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 A change in mindset to learn and unlearn is a must
REFERENCES & BIBLIOGRAPHY:
Books:
 Senge, Peter M. (1990). The Fifth Discipline: The art and practice of the learning
 Organization, Doubleday, New York.
 Senge, Peter, Kleiner, Art., Ross, Richard. Roth, George., Smith, Bryan.
 (1999). "The Dance of Change" New York: Currency Doubleday.
Whitepaper:
 “From Training to Learning in the New Economy” by Jordan, Brigitte &Amigos
 “From training to Learning- what’s the Hold UP? “ By Nandi Shareef
 “The future of Learning and Development, Trends, topics & Tools to stay ahead of
curve” by Futurethink
 “Training to Learning” by CIPD
Blog:
The Learning Curve and The Pivot Point by David Grebow
Reference websites:
 http://stephenjgill.typepad.com
 http://home.bersin.com/
 https://hbr.org/search?term=david+a.+garvin
Research Report:
 Reimagining L&D Capabilities to drive continuous Learning by Danny Johnson, Bersin
by Deloitte
 Research papers by Bersin and Associates

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Training & Development Process

Ms. Pallavi P. Kulkarni Ganesh Prakash Kedari
Assistant Professor MPM Student ASM’s IBMR
M.E.S. Night College, Aabasaheb ganeshkedari21@gmail.com
Garware Campus
Pune, India
ABSTRACT:
In this competitive world, training plays an important role in the competent and
challenging format of business. Training is the nerve that suffices the need of fluent
and smooth functioning of work which helps in enhancing the quality of work life of
employees and organizational development too. Development is a process that leads to
qualitative as well as quantitative advancements in the organization, especially at the
managerial level, it is less considered with physical skills and is more concerned with
knowledge, values, attitudes and behaviour in addition to specific skills. Hence,
development can be said as a continuous process whereas training has specific areas
and objectives. So, every organization needs to study the role, importance and
advantages of training and its positive impact on development for the growth of the
organization. Quality of work life is aprocess in which the organization recognizes their
responsibility for excellence of organizational performance as well as employee skills.
Training implies constructive development in such organizational motives for optimum
enhancement of quality of work life of the employees. These types of training and
development programs help in improving the employee behaviour and attitude towards
the job and also uplift their morale. Thus, employee training and development programs
are important aspects which are needed to be studied and focused on. This paper
focuses and analyses the literature findings on importance of training and development
and its relation with the employees’ quality of work life.
Keywords: Human Resource Management, Training & Development and.
Introduction
In the changing phase of the market, all organizations have a number of opportunities to
grab and number of challenges to meet. Due to such environment, the dynamic organizations
are smoothly surviving in the present competition. While facing these challenges, there is a
great pressure of work on the shoulders of management. It is a responsibility of the
management to make necessary changes at the workplace as per the requirement of the job. To
survive in the competition and to meet the requirements, the management needs to change
their policies, rules and regulations. The organizations face a lot of pressure in the competence
for a talented work force, for constantly improving the production methods, entrants of
advanced technology and for the employees who are inclined to achieve work life balance.
The success of any organization depends upon the quality of the work force, but in order to
maintain the quality of the work force, many organizations come across a number of obstacles.
These obstacles include attraction of the qualitative workforce towards the organization,
recruitment of intelligent, dynamic as well as enthusiastic people in the organization,
motivation of current employees with different techniques and retention of the current
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workforce for maintaining the organizational status in the competitive market. For surviving
the business and becoming a successful pillar in the market; training is a tool that can help in
gaining competitive advantages. Training proves to be a parameter for enhancing the ability of
the workforce for achieving the organizational objectives. Good training programs thus result
in conquering of the essential goals for the business. Hence, training is significant for giving
a dynamic approach to the organization. This dynamic approach is necessary because every
organization that adopts a controlled way of functioning may not be able deliver consistent
results but a dynamic and flexible organization may do so. This is possible only because of
improved quality of work life through implementation of training programs. A high degree of
quality of work life in the organization results in increased profits, higher employments and
accentuating demands in the market. Improving the quality of work life is a continuous and
progressive
Process of the organization. Quality of work life concerns with the requirements, needs,
working environment and job design of the employees at workplace. According to Guna
Seelan Rethinam Maimunah and European foundation for the improvement of Living
Conditions (2000), Quality of work life is a multi-dimensional construct, made up of
interrelated factors. Quality of work life is associated with job satisfaction, job involvement,
job security, productivity, health, safety, competence development, professional skills, balance
between work and non work life of the employee. The focus of Human Resource Development
is on devel oping the most superior workforce which helps the organization for successive
growth. All employees are needed to be valued and they should apply collective efforts in the
labour market every time. This can only be achieved through proper and systematic
implementation of employee training and development programs. Employees are always
regarded with development in career-enhancing skills which leads to employee motivation and
retention. There is no doubt that a well trained and developed staff will be a valuable asset to
the company and thereby will increase the chances of their efficiency and effectiveness in
discharging their duties. Training is a learning experience which has a capacity to make
positive changes and reach up to the desired objectives of the organization. It improves the
ability of the employee to perform the job efficiently and with excellence. Training and
development programs are the basic structural and functional foundations for the development
of the employees. These foundations are important for guiding the employees through
different situations. Training and Development programs are the framework for helping
employees todevelop their personal and professional skills, knowledge, and abilities. Training
imparts knowledge to the employees regarding different issues in the organization and the
proper execution of these programs result in number of benefits such as development of
profitable, adaptable as well as efficient organization and productive & contented employees.
It is useful in the following manner:
 Employees are able to balance their work life and personal life in a better manner which
leads to reduction of stress.
 Such programs help in improving physical and psycho logical health of the employees,
thereby bringing down the absenteeism rate.
 These programs develop the employee morale, increase the productivity, job satisfaction
and commitment of the employees towards the organizational goals.
 These programs also aim at the progress of the individuals in their personal and
professional lives.
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 They improve the communication between all levels of management which helps in
minimizing conflicts between different levels of employees.
 Such types of programs lead to effective negotiation and enable the designing of the
contracts which s
Atisfy all sorts of employees.
 These programs enhance efficiency of management and strengthen employee
organization.
 These programs improve the leadership, problem solving, interpersonal and conflict
resolution skills of theemployees.
 They are important for sharpening and utilization of the employees’ creative and
innovative skills.
Literature Review
Training and Development:
According to the Michel Armstrong, “Training is systematic development of the
knowledge, skills and attitudes required by an individual to perform adequately a given task or
job”. (Source: A Handbook of Human Resource Management Practice, Kogan Page,
8thEd.,2001)
According to the Edwin B Flippo, “Training is the act of increasing knowledge and
skills of an employee for doing a particular job.” (Source: Personnel Management, McGraw
Hill; 6thEdition, 1984)
The term ‘training’ indicates the process involved in improving the aptitudes, skills and
abilities of the employees to perform specific jobs. Training helps in updating old talents and
developing new ones. ‘Successful candidates placed on the jobs need training to perform their
duties effectively’. (Source:Aswathappa, K. Human resource and Personnel Management,
New Delhi: Tata Mcgraw-Hill Publishing CompanyLimited,2000, p.189)
The principal objective of training is to make sure the availability of a skilled and
willing workforce to the organization. In addition to that, there are fo ur other objectives:
Individual, Organizational, Functional, and Social.
 Individual Objectives - These objectives are helpful to employees in achieving their
personal goals, whichin turn, enhances the individual contribution to the organization.
 Organizational Objectives - Organizational objectives assists the organizationwith its
primary objective bybringing individual effectiveness.
 Functional Objectives - Functional objectives are maintaining the department’s
contribution at a level suitable to the organization’s needs.
 Social Objectives–Social objectives ensures that the organization isethically and socially
responsible to theneeds and challenges of the society.Further, the additional objectives
are as follows:
 To prepare the employees both new and old to meet the present as well as the changing
requirements ofthe job and the organization.
 To prevent obsolescence.
 To impart the basic knowledge and skill in the new entrants that they need for an
intelligent performance of a definite job.
 To prepare the employees for higher level tasks.
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 To assist the employees to function more effectively in their present positions by
exposing them to the latest concepts, information and techniques and developing the
skills they will need in their particular fields.
 To build up a second line of competent officers andprepare them to occupy more
responsible positions.
 To ensure smooth and efficient working of the departments.
 To ensure economical output of required quality.
Types of Training and Development Programs which are Provided to the Employee:
Different practices are followed in different industries and in different organizations too.
So, the need of trainingand development programs is depending up on the requirements of the
job profile. Therefore there are various types of programs shared by different authors. The
types of training and development programs are as follows:
Types of Training
On- the -Job Training
 Job Instructions
 Apprenticeship &
 Job Rotation
 Committee Assignment
 Internship Training
 Training through step by step
Off- the -Job Training
Programmed Instructions
 Coaching Class Room Lectures
 Simulation Exercises
 Business Games
 Case Study Method
 Audio- visual
 Experiential Exercises
 Vestibule training
 Computer Modelling
 Behavioural Modelling
 Role Playing
 Conference/ Discussion Method
 Workshop / Seminars
Stages of Training and Development Programs:
Training should be conducted in a systematic order so as to derive expected benefits
from it. The training system involves four stages, namely:
a. Assessment of training and development programs needs.
b. Designing the training and development programs.
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c. Implementation of the training program
d. Evaluation of the training program
Stages of Training and Development Programs:
Development:
Employee Development Programs are designed to meet specific objectives, which
contribute to both employee and organizational effectiveness. There are several steps in the
process of management development. These includes reviewing organizational objectives,
evaluating the organization’s current management resources, determining individual needs,
designing and implementing development programs and evaluating the effectiveness of these
programs and measuring the impact of training on participants quality of work life. In simple
way, it can be denoted as per the following formula.
Employee Development = Education + Employee Skills +Training Effectiveness
+Employee Quality of work life
Design of the study:
The design of the study is the conceptual within which research /study is connected. It
constitutes the blue print for the collection, measurement and analysis of data.
Data Sources
Primary Data
Is generated in an investigation with the help of questionnaire
Secondary Data
Is collected from books, internet, articles, journals and other sources.
Sampling:
Sample Population:
There are 155 Staff employees in the organisation
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Sample Size:
Sample size is 25, from total population of 155 staff employees of Imerial Auto
Industries Ltd.
Sampling Area:-
Sampling area was limited to the staff employee in IAI Ltd.
Sample Method:
Convenience sampling technique method was adopted for the research.
Tools for Data Collection:
Questionaire used for data collection. A pilot study is done by administering a
questionaire to sample of respondants fond of validation of the study. After the study
company’s manager and the guide was consulted and incorporated the ideas, in the final
questionaire. The questionaire contains the objective of the study
Conclusion:
Training and development programs play a vital role in every organization. These
programs improve Employee Performance at workplace, it updates Employee Knowledge and
enhances their personal Skills and it helps in avoiding Managerial Obsolescence. With the use
of these programs, it is easier for the management to evaluate the job performance and
accordingly take decisions like employee Promotion, rewards, compensations, welfare
facilities, etc. These training programs also help the managers in succession planning,
employee retention and motivation. It creates Efficient and Effective employees in the
Organization. The need for training & development is determined by the employee’s
performance deficiency, computed as follows:
Training & Development need = Standard performance – Actual performance Training
enhances the overall performance of an organization in various ways. The major areas where
employees are normally trained in an organization are Soft- skill Development, Personality
Development, Interpersonal Relationship, Problem solving techniques, Managerial and
Supervisory Training Program, quality improvement programs, technical processes, quality
circle programs, Time management skills, employee efficiency development programs,
violence prevention programs, regulatory compliances, goal setting andimplementation of
programs, workplace safety management, workplace communication, and so on. Training
enables the employees to develop their skills within the organization and hence naturally helps
to increase the organization’s market value, earning power of the employees and job security
of the employees. Training moulds the employee’s attitude and helps them to achieve a better
cooperation within the organization. Training and Development programs improve the quality
of work-life by creating an employee supportive workplace.

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A Study of Human Resource Management (HRM) Practices In

Management Institutions Affiliated To University of Pune (UoP)
Prof. Kalpana Lodha
Research Student, DYPIMS, Akurdi, Pune,India
Email: kalpana_lodha@rediffmail.com
ABSTRACT:
The Human Resource Management concept accepted in many organizations and
firms now days instead of Personnel management. According to Harvey Bowin 1996,P6
; the term HRM “The management of activities under taken to attract , develop, motivate
and maintain a high performing workforce within the organisation.” He tried to cover
the managerial and operational functions according to Aswatthappa in his book
“Human Resource management. In general Indian institutions put their efforts in the
direction of enhancing abilities, culture as well efficiency amongst the staff in person or
in groups (Singh, 2003).The impending worth of the staff can be increased by jointly
improving and relating their abilities and talents with the current needs of environment
in the market.(p 68.4) HRM practices are observed in terms of planning, recruitment,
selection, training and development, performance evaluation, career management and
rewards.
Now a day’s Human Resource Management Practices is the only way through
which the organizational culture is formed and preserved.
Introduction
Definition
Shonhiwa and Gilmore (1996) define HRM as the “planning, organizing, directing and
controlling of the procurement, development, compensation, integration, maintenance, and
separation of human resources to the end that individual, organizational, and societal
objectives are accomplished” (p. 16).
Michael Armstrong, in A Handbook of Human Resource Practice, Describes Human
Resource as “the strategic and coherent Approach to the management of an organization's
most valued assets - the people working there who individually and collectively contribute to
the achievement of the objectives of the business.”
Evolution of Human Resource Management
The simple meaning of HRM is managing the people or the workforce. In earlier days
the community was mainly an agricultural based economy and the other businesses or crafts
were very limited in numbers. Also as in ancient days the concept of globalization was not
present as lack of advancement in technology. Therefore there were very limited channels of
communication. It can be called as the period of Barter system.
But this scenario changed by industrial revolution which took place during 1750 to
1850.This revolution remarkably changed the scenario of the economic status of the world.
The agriculture based economy shifted to industry based economy. The people were getting
the wages for contributing their efforts, welfare facilities...etc. Mainly the industrial
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revolution. This situation of industrial revolution materialized the concept of personnel
management which less or more includes:
 Worker’s wages and salaries
 Worker’s record maintenance
 Worker’s welfare
The main remarkable feature of the industrial revolution is that there was emergence of
Trade union. The main purpose of trade union was to safeguard the interest of the worker
against the management like avoiding the exploitation of the workforce. Less wages and more
working hours or lack of provision of basic facilities pro/welfare facilities to the workers...etc
To deal with these matters related to the workers as a mediator between the management and
the workers the personnel Department concept came into existence.
Post Industrial revolution: The HRM concept came into existence at the end of the 18th
century and the starting of the 19th century gradually. Various management thinkers and the
researchers studied this concept especially Elton Mayo, .W.Talyor, Hawthorne, Herzberg
,Henry Fayol, Douglas McGregor...etc
During last 50 years there is remarkable development in the area of Human resource
management (Dyer, 1999; Rothstein, 1999). These changes mainly influence as HR become
the strategic partner of any type of the organisation or firm (Kaufman, 1996).Page 493. The
development of the IR/HR department’s role has included keeping records, advocating
employees’ rights, insuring legal compliance, facilitating change, and partnering strategically
with top management (Kaufman, 1999). Existing perception guides that HR manager HR
department is mainly accountable for giving direction and recommendation, participating with
management in formulating and implementing strategic intent of the organisation and
workforce encouragement. (Sherman et al., 1998).
A concise impression of key theories released during this period is as:
Frederick W. Taylor introduced the scientific principles based on the time and motion
study based on the job analysis1857 to 1911. In 1885, the scientific management studies
conducted by Frederick W. Taylor and others, served the management to make out ways to
work further well-organized and growing worker output.
 Worker’s training
 Maintaining wage uniformity
 Focus on attaining better productivity.
1920 to 1940:
In the mid (1920to 1940). Elton Mayo conducted the Hawthorne Studies exposed the
results of work groups on individual workers. Eventually, it showed the way to the
advancement and benefit of employee counseling and testing in industry. Hawthorne focused
on Human resource from increasing worker’s productivity to increasing worker’s efficiency
through greater work satisfaction.
Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy
of needs ( 1954) – observed that the transition from the administrative and passive Personnel
Management approach to a supplementary changing dynamic Human Resource Management
approach which considered workers as a precious source.
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Sreenath S. observed a definition of HRM is a series of incorporated conclusions that
outline the employment relationship; their quality contributes to the capability of the
organization and development the employees to attain their purpose. Each organization is
made up of people , getting their contribution in the form of services , improving the
capabilities and skills , motivating them to higher levels of results and certify that they carry
on to uphold their commitment to the organization are indispensable in attaining the goals.
Chinmoy Mukherjee concluded that the concept of human resource management has
grown through an evolutionary process in India. The various phases of growth have
contributed to the process of evolution. The exploitation of labour took on such a brutal shape
and temperament that the state had to interfere by putting in parliamentary measures to
safeguard the workforce who were the sufferers of this distress. The notion of 'welfare’ which
formed the foundation of management of human resources. Captivating a signal from the state
many development oriented employers considered the idea of labour welfare. The owners
began to change their outlook and started to introduce a social welfare measures in the
organisation.
The Iron man of India Shri Jamshetji Tata always called his workforce as “Children”
rather than the employees of the organisation. He created the new post of “Welfare Officer”,
Factory Inspector...etc in his company. He implemented all the legislative norms introduced
by the government of India like appointments under the Factories Act,1948,...etc. Sree Rama
Rao added that Shri. Jameshtji Tata one of the challenging and Change leader had set up a
series of welfare measures for workforce much before it became obligatory by law.
The growth 19th century demanded considerable work connected with the organization
which fell outside the territory of welfare officers but the specialized nature of the work
required personnel who could proficiently handle recruitment, manpower training, planning,
discipline and other roles which called for professional expertise. The second juncture during
which many organizations recruited qualified personnel to take care of the responsibilities. In
this period so many legislative norm established which were in the favour of employees. The
very basic act which describes the disciplines polices followed by the organisation called
“Standing Order Act “came into existence .Advance organizations and industries established
IR & welfare departments in their organisation.
According to Goss & Furrakh Abbas 1994 , the evolution of HRM is quiet related to the
issues related to the globalization, development and reorganization of industries ...etc. In the
period of 1970s & 1980s the US and UK trade turned out to be ineffective at global level due
to supremacy and advancement of technology of Japan. To find out the reason of failure
Western officers made the scrutiny of Japanese Industry culture and concluded that Japanese
people gives importance to people as an asset of the firm. These observations unlock the door
of progress of HRM.
Development of HRM in India
1940s to 1950s:
In the 1930s, the numerous foremost labour laws, such as the National Labor Relations
Act of 1935, led to the growth of unions. The significance of collective bargaining rise to
power in the 1940s and 1950s expanded the responsibilities of the personnel area in many
organizations, particularly in manufacturing, utilities. The responsibility of the HR manager in
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the organization as a staff function to support operational (line) departments extended during
this period, and line/staff issues grew to influence HR departments in the following decades.
1960s to 1980s:
Increased legal requirements and limitations arising from the social legislation of the
1960s and 1970s forced spectacular changes in the HR departments. HR departments had to
become much more specialized and qualified worried about the legal implications of policies
and practices. Also, organizations took a new look at employee participation and superiority of
work as a result of the shock of automation. During the 1980s, the tactical responsibility of HR
management became vital as organizations reduced staff, shut down plants, or “restructured.”
1990s:
During the 1990s, organizational reformation continued. A revision of HR manager
concerned in redevelopment of the HR management in their organisation found that the
customary HR function commenced changing its importance. The HR managers of the future
will need to be more tactical, planned and positive.
Later on the focus was on the behavioral concept introduced within the organizations.
The earlier personnel and welfare functions were became wider and enlarged to envelop areas
like behavioral and motivational techniques, performance appraisal systems, management by
objectives as well as incentive schemes to improve the performance of the employees. In a
spectacular expansion during this phase, management became conscious about the work
culture and work values.
Sree Rama Rao ( October 14, 2009) studied that The Royal Commission on Labor put up
from 1929 to 1931 to scrutinize the conditions recommended for the engagement of labour
officers. The recommended modifications brought standardization and that was the first step
toward introducing personnel management. Formation of trade unions, with close links with
political leaders like Mahatma Gandhi (the Textile Labor Association in Ahmadabad was
founded in 1920), also inclined the way industrial workers are managed. These focuses made
an ample number of workers available to the industry, well-organized the “rural” and “less
educated workers” and executed a variety of legislations and settled disagreements.
After the independence in 1947, gradually change took place in the circumstance
regarding the personnel management approach of organizations and industry. The global
economy is also important factor to make change in the conditions of the personnel
management. Many laws were introduced to safeguard the interest of the employees.
The trade union movement developed in India along with the industrialization. The
employees became more conscious about their rights and it was become difficult to exploit
them. During the period of 1970s and 1980s gradually the functions of HRM started including
in the organizations and industry like
 Personnel and administration
 Industrial Relation
 Labor welfare
But with very rare departments of HR/Personnel. These activities were conducted or
implemented under administration department.
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Current HRM in India
According to Goss & Furrakh Abbas 1994 Now days the organizational structure is
likely to be flat rather than the vertical structure and more supple. It is more elastic with
involvement of personnel in the task of the organization, empowerment and delegation of
authorities and responsibilities. Motivation with Recognition and reward system. In short, the
actions are materialized the HRM into practice gradually. During 1980 the period of recession
also gave authority and control, self assurance and also trade union were on the verge of
vanishing the influence. This resulted into that management were self assured, enough liberty,
autonomy and enthusiastic to run through innovative facts of financial bang.
Pfeffer (1994) said argue that superior utilization HRM practices, in the field like
participation and empowerment, incentive pay, employment security, internal promotion, and
training and development, results in greater efficiency and revenue .
Nitin Shrdharrao advocated that Human resources are the long term investment which is
universal and applicable to every field which is the combination of talent and resourceful
capability by the staff. All types of employees are involved under human resource
management; whether it is top level/ lower or middle level. So it can be said that the person
who gives his efforts for achievement of aim is the part of the Human Resources.
Edwin Flippo explains HRM as ““Planning, organizing, directing, controlling of
procurement, development, compensation, integration, maintenance and separation of human
resources to the end that individual, organizational and social objectives are achieved."
Even same functions of HRM cannot be ignored by the MIs .All functions are applicable
in any institutions. Here Human Resource Management Practices also helps in MIs in
acquiring the capabilities and talents of staff also thus keep control on the progress of the MIs.
Mark A. Huselid argues that the staff recruitment gives the biggest stuff of talented
aspirants. By giving them a appropriate guidance in the form of training in the form of
coaching/ mentoring....etc helps in the career development of the employee as well beneficial
to the staff.(p635) From this it can be narrated that performance of the workforce within the
MIs has significant suggestions for managerial behaviour and Human Resource Management
Practices can influence the employees individual action and performance through their
influence over employees’ skills and motivation and through organizational structures
that allow employees to improve how their jobs are performed.
Harold Andrew Patrick1, Shiju Sebastian(2012) said that the phrase Human Resource
Management Practices is used by many firms which explains the blend of the conventional
managerial personnel functions and performance, workforce relations and planning of the
available resources. The ultimate aim of the HRP is to increase the return on investment from
firms’ human capital and minimize the risk factor in the financial terms.(Page 126) .In MIs
also we can observe that with proper planning based on the norms of AICTE the recruitment
planning has done. With proper recruitment and selection process minimizing the risk of
turnover and maximizing the return on investment in the form of good result by the teaching
and non teaching staff’s performance. There is also an immense relationship between the HRP
and assurance. . Efforts are being made to study and gather information about human
resource management practices that are used in educational institutions and the effects
these practices have on employees’ feelings of commitment toward the organization
Mowday et al. (1982), and Steers (1977).
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Edwin Flippo explains HRM as ““Planning, organizing, directing, controlling of
procurement, development, compensation, integration, maintenance and separation of human
resources to the end that individual, organizational and social objectives are achieved."
Even same functions of HRM cannot be ignored by the MIs .All functions are applicable
in any institutions. Here Human Resource Management Practices also helps in MIs in
acquiring the capabilities and talents of staff also thus keep control on the progress of the MIs.
Mark A. Huselid argues that the staff recruitment gives the biggest stuff of talented
aspirants. By giving them a appropriate guidance in the form of training in the form of
coaching/ mentoring....etc helps in the career development of the employee as well beneficial
to the staff.(p635) From this it can be narrated that performance of the workforce within the
MIs has significant suggestions for managerial behaviour and Human Resource Management
Practices can influence the employees individual action and performance through their
influence over employees’ skills and motivation and through organizational structures
that allow employees to improve how their jobs are performed.
In general Indian institutions put their efforts in the direction of enhancing abilities,
culture as well efficiency amongst the staff in person or in groups (Singh, 2003).The
impending worth of the staff can be increased by jointly improving and relating their abilities
and talents with the current needs of environment in the market.(p 68.4) HRM practices are
observed in terms of planning, recruitment, selection, training and development, performance
evaluation, career management and rewards.( Page 69) Now a day’s Human Resource
Management Practices is the only way through which the organizational culture is formed and
preserved.
Job analysis and design, recruitment, selection, orientation, training, performance
appraisal, career planning and development, human resource planning, compensation
management, employee health and safety etc ...are described as a part of Human Resource
Management Practices
Seray Sözer said than an Institutional career planning mainly includes jobs and
creating/building the career paths which supports the growth of individuals between jobs
(Mathis & Jackson, 1991) whereas individual career planning directly related to the staff or an
individual.(p14) . Marriott (2001) observed that compared to career planning job analysis, job
designed...etc recruitment and selection, training, performance management, orientation,
training and development retention are often practiced as a part of the Human Resource
Management Practices.
Tahir Masood concluded that the main goal of HRM is to make sure the growth and the
progress of the Institution with the help of stimulated and talented, highly qualified staff.
Recruitment and selection, training and development, performance appraisal, career planning
system, employee participation and compensation ....etc make it possible as a Human
Resource Management Practices for the organisation. Human Resource Management Practices
are logical and intended system for the organizational staff working alone and contributes
their services for the achievement of the institutional aims.
Compensation system is the heart of any organisation without which no organisation
cannot run. Because the main intention of any staff is to earn money for contributing his
services to the organisation. It plays very active and important role in motivating the
employees and to retain with the organisation which helps in reducing the turnover
ratio.(26&27) Thus, supports in increasing the organizational efficiency. While deciding the
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compensation factors it is equally important to consider the different determinants like
productivity of the staff , few factors which are discussed in Herzberg’s motivational theory
like relationship with peers, subordinates, managers and his personal requirements. This
compensation in addition can be used to retain and nurture the talented workforce, motivate
them from time to time, increase the job satisfaction and reduce the turnover. This may
changes according to the level in the organisation as designation and type education and
experience . (Pedro & Vicente, 2007). In this context there is an important contribution from
management thinker called F.W. Talyor ; he said in 1911 that It is impossible, through any
long period of time, to get workmen to work much harder than the average men around them,
unless they are assured of a large and permanent increase in their pay.
Following are some Human Resource Management Practices:
Spector, 2003, p.54 defined “Job analysis is a method of for describing jobs and/or the
human attributes necessary to perform them”. Job analysis is the equation of job specification
and job description .Job description is mainly related to the tasks, duties, and responsibilities
(Harvey & Bowin, 1996).( p71.4) whereas job analysis is related to the knowledge,
capabilities and talent that are needed to execute the task efficiently. Job specification is a
major tool in the staffing process. Job specification specifies personality requirements
containing items such as required levels and qualifications necessary to perform a job in a
proper manner. "Job specification is a useful device which translates the job description into
terms of human qualifications and sometimes level of performance, required for successful
performance of the job".
-Wendell French
Recruitment &Selection
For proper and effective recruitment and selection process it is always better to use the
realistic job preview by the MI. The roaster is prepared by the MIs to get approved by the
University and then the MI proceed further for the recruitment and selection process. But there
is always lack of Realistic Job Preview (RJP). L.M .Prasad also emphasised on this point
.According to L M Prasad Realistic Job Preview includes
1. Setting realistic job potentials
2. charisma of job is evaluated in the light of realistic job expectations
3. Some agree to and some refuse the job offers
4. Expectations are confirmed by job experience
5. Creation of satisfaction in the light of job expectations
6. High rate of personnel retention and high rate of job survival
Ivancevich, 1992 also added that RJP gives the total facts and information positive and
negative features related to the organisation to the aspirants so that before applying they can
make the decision whether to proceed or not.
Orientation is an important practice but ignored by many MIs. This works mainly
psychologically on the minds of the newly entered personnel. Very few organizations follow
the orientation process. Management thinks that orientation is wastage of time and money. But
in fact to avoid future wastage of resource, time and money it is very important. It actually
reduces the anxiety amongst the new entrant in the organization. It also helps to reduce the
turnover of the organization.
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Orientation is the planned introduction for new entrant to their work, their peers and
mainly to the institution. The main reason of Orientation is to ease the new personnel from
probable nervousness and create him or her experience at home on the workplace. Garry
Dasseler also added that it may be informally. Informal orientation is concise. The new staffs
are likely to make acquainted with the new surroundings by himself or herself while working
on the allotted job.
Performance Appraisal
Borman and Motowidlo (1993) concluded that talent and skills are related to the
performance with which Teaching and Non Teaching Staff that is additional institutional,
social, and psychological environment to achieve the organizational aims. (p13)
Performance appraisal can be said as the evaluation of the actual performance of the
personnel related to the job assigned to him/her against decided benchmarks. This helps to find
out the potentials hidden in an individual. There are different intentions to evaluate an
individual against given task. But the main aim of appraisal is for Training Need Analysis
process, to upshot increments or promotion may be in the form of enlargement, give pay
increases....etc, counseling and mentoring. Edward Deming argued the concept of performance
appraisal. Instead; he focused on effective leadership for smooth and successful running of the
organization.
As in performance appraisal job evaluation follows sequential steps ,the steps being
defining objectives ob job evaluation; conducting job analysis which helps frame job
description ,job specification, finalizing job evaluation programme; conducting wage survey;
and classifying employee.
Career Planning and Development
The main purpose of Career planning and development is improving the talent,
knowledge, proficiency ...etc with the development which is provided by the MIs. Career
planning plays vital role. It is an effective tool which helps to sort out the issues like low
efficiency, less job dissatisfaction, turnover...etc suggested by Gutteridge (1986). To Reduce
Employment and Turnover Expenses: The monetary investments made by an employer are
considerable and relate to training, development, benefits and previous wages. To lose the
employees because of poor career development and planning is an expenditure that cannot be
ignored. Careful career development tries to attain a meeting of the minds between the
individual and the MIs on a number of vital subjects in order to discourage the voluntary
turnover of high quality and highly qualified staff. When an employee recognizes that there is
a logical and ordered means for him or her to move ahead in the Institution, he or she may see
considerably less need to depart the organization for career development and opportunities.
Here, one may not overtly concerned with individuals; rather concerned with the voluntary
termination of valuable human aspects of organization.
A 'Career' is all the jobs that are held during one are working life. According to 'E.B.
Flippo', Career is a series of separate but related work performance that gives stability,
consistency, direct and meaning in a person's life. Douglas T. Hall stated career as an
"individually perceived sequence of attitudes and behaviors associated with work related
experiences and activities over the span of the person's life".(p 14 1.4.5)
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Compensation Management and Incentives
Harvey & Bowin, 1996 discussed that Compensation management is the method of
rewards, which and worker receives in return for his performance. Generally every
organization has its own structure of compensation according to the aims and objectives of
organization. First, they try to acquire qualified personnel and retain present Teaching and
Non Teaching Staff. Next, the MIs’ aim is to ensure internal and external equity of
compensation that Teaching and Non Teaching Staff earn. The third objective is to reward
desired behaviors of Teaching and Non Teaching Staff like good performance and loyalty and
honesty. Also compensation is to control costs of acquiring and retaining the MIs’ personnel.
A "salary" is normally linked with financial compensation that is decided to be paid to an
individual at regular interval for services provided. Salaries are fixed compensation paid to
holders of official managerial or clerical positions, on a regular basis, such as by the year,
month, quarter or week.
Rewards given to the personnel for his/her personal contribution towards the goal of an
organization are called the compensation. Even though when an individual first considers the
concept of compensation for work, he or she may only give consideration to the hourly wage
or salary. Direct wage and salary payments may only compose 65 or 70 % of a total
compensation package. Today, a considerable portion of an employee's total remuneration is
in the form of company benefits and services. The majority of the organizations today provide
workforce with certain tangible benefits and services over and above the basic pay. These
indirect financial additions may offer an additional leisure, extra income and a better work
environment for the employees. The financial and non-financial rewards offered to workforce
is a sign of together encouragement for attracting potential workforce as well as factors that
existing personnel will definitely believe in their decision to remain with or leave a particular
employer. Additionally, the compensation package may serve as a reflection of an employee’s
value to the organization or an sign of an individual's evaluation of his or her own self-image.
Accordingly it must be assumed that employee compensation has both realistic and emotional
connotation to every personnel. On this ground, conclusion and norms connected to
compensation management tend to be vital components of a human resource department's
responsibilities.
(a) Capability of Staff: The manager must set up adequate programmes to build up the
entire possible subordinate so that they would be able to accept higher risks and
challenges.
(b) Bargaining Power: Bargaining power of the member of staff or his trade union is
another important factor which influences determination of monetary compensation.
Demand and supply of personnel for the specific class of position or job also influences
fixation of fiscal remuneration. When the demand exceeds the supply of specific
category of manpower substantially, the remuneration is bound to be high and vice-
versa.
(c) Remuneration Level in the Market: Identical organizations are generally taken into
account before the salaries of identical jobs are determined. Firm's ability to pay is
another significant standard for determining compensation. Economically, viable and
healthy corporate citizens, which have ability and willingness to pay, are bound to be
good pay-masters. On the other hand, well paid organizations can expect to get good
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quality staff. This is the reason why many of the successful organizations are good
paymasters too.
(d) Position: efficiency, success and the firm's financial position also play a very essential
role in formulating the salary of its staff. Though efficiency index is a good basis for
wage determination, it is not always accepted by staff. However, no business can go on
increasing the salaries of its workforce without studying of its revenue capacity. The
stronger the financial position of a company better would be its ability to get better its
pay level. Cost of living or standard of living of the environment in which the staff
actually works affects the determination of remuneration. Dearness allowance is
generally fixed on the basis of cost of living index. A salary which is inadequate to meet
both ends of an employee is bound to fail to satisfy them. Such an employee would not
be able to add his most excellent for the common objectives. Hence, before fixing salary
scales, it is appropriate to take into account the cost of living.
(e) Government Regulations: It also affects executive remuneration. Every country has its
own legal provisions regarding payment of wages and salaries in its territory.
Any monetary compensation plan must fulfill at least four things, viz.,
i) It must attract and keep suitable number of personnel in the organization,
ii) It must inspire workforce at work to give their best towards the strategic intent of the
organization
iii) It must assure the desires of the personnel of the organization.
Managing Employee Health and Safety
It is important for any organization to get better professional safety and health, which in
turn, positively have an effect on workforce’ safety and health. Schuler (1995) argued that
work-related protection and fitness as the physical and psychological conditions of
organization’s work force that results from the work surroundings offered by the organization.
Enhancement in work-related safety and health is always advantageous. It increases in the
form of in profit and due to fewer lost workdays, savings of litigation costs, fewer medical and
insurance costs, reduction in insurance premiums, and better selection ratios because of the
enhanced image of the organization. (p19 1.4.8)
In order to supervise and control staff health and safety, human resource departments
coordinate health and safety programs, build up safety reporting systems, and provide accident
investigation expertise and technical expertise on accident research and prevention.
Specifically, human resource departments are generally responsible from maintaining
government-required health and safety records, coordinating a safety training for new
Teaching and Non Teaching Staff, assisting the supervisors in investigating accidents in which
an employee was injured, and developing a plant-wide safety communication program and
informational materials (Harvey & Bowin, 1996).
Dessler (2006) asserts that training is important for the already existing and new
employees in the organisation. He said that development means expanding the scope of the
staff. Dessler, G. (2006). A framework for human resource management. Upper Saddle River,
NJ: Pearson/Prentice Hall. Ivancevich (2001) considers that the staffs make the constructive
work for the institution due to the development activities conducted within the organisation.
The main of the training function on the present task while the focus of the development is on
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the broadening the present skill/talent. Training and development together are the important
functions in sustaining the good performance of an individual staff in an organization.
Pfeffer (1994) said argue that superior utilization HRM practices, in the field like
participation and empowerment, incentive pay, employment security, internal promotion, and
training and development, results in greater efficiency and revenue .
He also argued that Human Resource Management Practices motivates the sharing
between the staff and permit to enhance their quality of job and ultimately the good
outcomes.(page 42).Here he also states that the execution of the best practices creates the
greater impact on the organisation and the staff positively.
HR practices in India
Quality education and research are encouraged across the country, which mould and
contribute to the practices in Indian organizations. The HR practices in Indian organizations
are by no doubt unique.One important point can be noted that the cultural impact on the hiring
practices, compensation standards, benefits and statutory governance performance linked
rewards and payouts and the general day to day management practices though in-step with
international HR practices The variety that is seen in the Indian society w.r.t. diverse religions
and states are reflected in the ability of the Indian and the Indian corporate to tolerate diversity
of thinking and working together without humiliation. Culture wise work, long working hours,
perseverance and the need to earn money impact the HR policies decided by the management
in India.
Compensation costs as still a competitive advantage for India making it a preferred
business location worldwide. Since launching HR movement in 1994 in the civil service, the
Civil Service Bureau has sponsored and individual departments have introduced various HR
initiatives. In taking HR forward, one must need a strategic and integrated approach in
managing people effectively for performance and the output. Numbers of researchers have
reported that HR practices can be positively linked. HR began to play a significant role with
the early enactment of these employment-related laws:
 The Workers’ Compensation Act of 1923 ensured that employers compensate employees
for work-related injuries.
 The Trade Union Act of 1926 gave formal recognition to trade unions.
 The Industrial Disputes Act of 1947 led to the increased role of industrial relations
(employees were distinguished by the work they did such as permanent, temporary,
trainee etc.)
 The Factories Act of 1948 regulated the work environment in factories to ensure the
safety of employees. The Employees Provident Funds and Miscellaneous Provisions Act
of1952 required employers to provide contributions for retirement. With organizational
and employee performance (e.g. Guest, 2002; Harley, 2002;) Gould-Williams, 2003;
Park et al., 2003; Wright et al., 2003; Tessema and Soeters, 2006). The focus and thrust
of these studies have been towards developed countries. Little research has been done to
test the HR-performance link in developing countries like India.
Importance of Human Resource Management Practices in Organisation
According to Mark A. Huselid increasing body of work contains the argument that the
use of High Performance Work Practices, including comprehensive employee recruitment
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and selection procedures, incentive compensation and performance management
systems, and extensive employee involvement and training, can improve the knowledge,
skills, and abilities of a MIs’s current and potential employees, increase their
motivation, reduce shirking, and enhance retention of quality employees while
encouraging nonperformers to leave the MIs (Jones & Wright, 1992; U.S. Department
of Labor, 1993).
.Human Resource Management Practices is the largest and indirect long term investment
for any organisation. HRM at Worldwide is considered to be the total of talent, knowledge,
skills and capability possessed by an individual. On the basis of the availability of these
factors within an individual and relating those with the job analysis the designation and
compensation in the form of the salary/wages are decided. Thus Human resources are
contributing to the economic development of the nation by proper execution of HRM
practices.(p1)
Identical situations have been observed in the MIs. Though these are the educational
institutions you will find out that all the HRM Practices are not pursued by the management.
Still there is no serous lookout of the management towards the Human Resource Management
Practices eg: though it is mandatory to make the appraisal of the teaching and non teaching
staff or provide Faculty Development programme in many MIs there is inattentiveness about
these practices. In fact, these activities help to enhance the talent and capabilities of the
teaching and non teaching staff. Also motivates them to work with confidence which results
into progress of the MIs in the form of less turnover of the staff, improved the academic
results may one of the ranking MI in the University. Still there is an increase in awareness
about Human Resource Management Practices after 1990 worldwide including educational
field up to some percentage. Few good HRM Practices indicators are discussed by the
researcher are as:
Importance of HRMP in Education
Dyer, 1999; Rothstein, 1999 argued that there is a remarkable progress in the field of
Human resource Management in last 50 years. Not a single field remained untouched of it.
Now HRM is the strategic partner of a business world.(p492.2). This also true that the HR
problems is the combination of internal as well as the external scenario and the organisation.
This is also true in case of the MIs. eg. the recruitment of the staff is affected by factors like
internal factor as – management decisions to which candidate they should select or proper
roaster is required to be prepared by the MI director to select the staff. Also factors affecting
like on the basis of number of student’s admission the ratio of the staff mentioned in the book
AICTE according to that it should be selected. Turnover is an another biggest issue for the
Management which is combined of so many determinants like working
environment/conditions, facilities provided, compensation remunerations and benefits...etc
which decides the level of job satisfaction.
India has one of the biggest 'Higher Education Systems’ in the world. More than
Every year2.5 million graduates are pass out in India the figure after the developed countries
like US and developing country like China .Currently as per 2005 443 universities of which
251 are State universities ,24 Central Universities, 130 Deemed Universities, and 5
Institutions established under State legislations and 33 Institutes of National Importance
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established by Central legislation(p125) Asian Journal Of Management Research :Volume 3
Issue 1, 2012
Importance of HRMP in MIs
At present, even all the educational institution realized the significance of the Human
Resource Management Practices. Especially in the Higher education it is the performance of
teaching staff that decides the success or failure of Human Resource Management Practices. It
is the essential part for any educational institution management to see on the Human Resource
Management Practices for the excellence in the field of education. In the world of cut throat
competition the management of the institute should attract and select the staff that is the most
talented and having relevant skill to impart their skills to the students. Even for this the
teaching staff can sharpen their skills and talent with the help of training and development.
According to the AICTE there are provisions made that there should be the faculty
development programme for the staff so that they can improve their talent and
abilities.(p3)The staff should evaluate themselves against different updated benchmarks ,
stimulate the staff by providing proper recognition, compensation and rewards at the same
time the healthy working environment is important.
The very important responsibility of the management / director of the Institution is to
find out the loopholes and flaws which are currently in the present in the system. This exercise
of the director surely and positively make it possible to rearrange the their thinking and put up
the better and progressive policies of HR for the institute.(p5)
To improve the competence of educational institutions Kwan (2009) follows the views
of Wright and Snell (1991) and concludes that an educational institution should recruit and
select the staff who are the most knowledgeable in their domain subjects, induct them with
institutional beliefs, give them a proper training and development, inspire them by proper
rewards, recognition & compensation, and create for them favorable working
surroundings/situations.
Top Management and the director plays vital role in enhancing the performance of the
MIs with the help of HRM practices like training and development including mentoring,
compensation and motivation, appraisal and proper counseling , handling staff by using the
proper leadership style ...etc . Christopher J. Collins also argued that Human Resource
Management Practices leads to improve the efficiency and outcome of the organisation only
when they are closely associated with one another to control the staff in such a way that leads
to strengthen the capacity of the organisation in a right manner. (Delery & Doty, 1996 p742)
Same is applicable in case of the MIs. When the director or the management of MIs align the
practices of HRM properly with studying it in a right manner according to the aim of the MIs
defiantly there is an assurance of enhancement of the organizational performance. According
to Lado & Wilson, 1994 it is difficult make 100% replicate the Human Resource
Management of one organisation same as in the other organisation in case of the knowledge
capital based organizations specially .Because these Human Resource Management are staff
capability based and aligned with the strategic intent of the organisation.
In last decade there are drastic changes in the field of HRM. Now a day there is
awareness in the field of Human Resource Management Practices. Educational field is not
exception to this. Only the percentage and the seriousness about Human Resource
Management Practices vary from country to country. It is the task of teaching staff and
INCON - XI 2016 211

decided by them the failure/success. But to decide this there is need of implementing the
Human Resource Management Practices. Human Resource Management Practices is required
to enhance the quality of teaching and non teaching staff. Quality, standard education is
possible only when there are updated highly professional, experienced staffs available in the
Institution. But again to get and retain that staff Human Resource Management Practices are
required to be implemented within the MIs. (p3). Furrakh Abbas concluded that the director or
the management should do the SWOT analysis of the Institution. (p5). This scrutiny of finding
out the feeble points of MIs will help out to overcome the problem of job dissatisfaction,
turnover...etc with the help of application appropriate Human Resource Management Practices
in the Institution. These Human Resource Management Practices will be beneficial to sustain
themselves in the competitive environment and achievement of institutional aims.
Furrakh Abbas argued that for improving the competency level of MIs Kwan (2009)
organization should recruit and select the teaching and non teaching staff who are the most
knowledgeable and capable in their respective field or domain , inculcate in them the culture
and values related to the Institution; also train them from time to time to update them, for
better performance motivate them with the help of direct and indirect ways of compensation,
and the most important i.e. make them available the safe working conditions and healthy
environment .
To conquer this problem MIs can do the international tie up as well considerable
industry level association between these industries and B-schools so that there will be an
interaction between the industry and the students as well the faculty members. a lot of B-
Schools have good alliance with the leading business groups and with the help of them they
are continuously monitoring the business conditions prevailing in the market.
Implications for Institutional Actors of an Engagement in Quality Teaching
Teaching staff is the main actor for the appraising criteria of quality teaching .
(p1)The institutional surroundings of MIs or organizations can also guide to improvement
of the quality of teaching MIs through different ways. (p7) A methodical reflection on quality
teaching is also likely to raise questions on the learning and work environment, which is the
primary responsibility of the institution.
After all excellent teaching might become a support of a growing institutional quality
culture; value-driven institutions with a long-standing established identity rely on quality
teaching to promote the identity of the institution.
Budhwar and Sparrow (2002) outlined a structure which may be used to study cross-
national disparity in human resource management practice. Many researchers united together
to shape the “Best International Practices Consortium” or “Best Practices Project” (BPP), a
sequence of studies designed to determine cross-national disparity in observations and
practices in several areas of human resource management including personnel selection,
performance appraisal, training, compensation practices, leadership, and communication .
Knight, 2004 observed that MIs are going through vibrant alterations both at domestic
and international level. Large scale and rapid societal change confronts educational institutions
and their graduates with evolving challenges in their efforts to be both successful and relevant.
An increasingly multifaceted and unified worldwide market of views, individuals and process
requires multi skilled talent. MIs required furnish equipping their students to sustain and
succeed in theses political, social, cultural, economic, environmental melting jar. If it is done
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the effect of it is that MIs will be supported by the government MIs now actually on the verge
of making and shaping students to face the competitive environment worldwide to connect
them in the globalised world.
Status of Management Education in India.
India already has 11 efficient IIMs in Ahmedabad, Bangalore, Kolkata, Lucknow,
Indore, Kozhikode, Shillong, Tiruchirappalli, Ranchi, Raipur and Rohtak remaining three are
to setup in state of J&K, Uttarakhand and Rajasthan. Apart from these IIMs many
Management institutions are established affiliated to universities and under the control of
AICTE which is established by the Government of India. If we see we can find it out that till
2009-10 there were 1940 MIs in India (source www.aicte.ernet.in). And . According to the
rules of aicte assuming at least 60 intake capacity for each institution and 1 :15 faculty
students ratio and non teaching staff ratio (ref page no 7.2 It means 7760 +1940 =9700 ) If
we see the growth of intake we can observe that the intake capacity increased to 179561 of
only management .It means the growth rate of staff as per the ratio its more than 15000.
Table 2 : Growth of Intake in AICTE approved instaurations in last five years
YEAR ENGG. MGMT. MCA PHARM ARCH HMCT TOTAL ADDED IN YAER
2005-06 499697 80464 55548 32708 4379 4435 677231 40691
2006-07 550986 94704 56805 39517 4543 4242 750797 73566
2007-08 6536290 121867 70513 52334 4543 5257 907822 157025
2008-09 841018 149555 73995 64211 4543 5794 1139116 231294
2009-10 1071896 179561 78293 68537 4133 6387 1408807 269691
Teaching and non teaching staff: Quality and the standard will only improve when there
will be good experienced, highly professional dedicated staff .But it is only possible when
there is all well set. Means all the policies and practices are in the right position. But get all
these things organized and structured; it is important to study the HRMPs which is an integral
and inevitable part of any organisation. Implementation of HRMPs also reflects development
and growth of the organisation.
Lakhwinder Singh Kang observed that the expansion of Management institutions in
India was slow till 1990, after which a extraordinary growth could be seen. Till 1995, there
were 422 management institutes which increased to 1,226 by 2006 and this growth is unevenly
spread among different regions of the nation. The maximum number, i.e., 378 business
schools are situated in the southern region, and 201 in north-west region , the western region
(197), the northern region (146), the south-west region (123), the central region (94) and the
eastern region (87). In the north-west region, Rajasthan has a leading position with 62 business
schools, followed by Delhi (47), Punjab (41) and Haryana (36) (AICTE, 2008). The
institutions which are imparting business management education necessitate make out the gap
between the syllabus offered and the industry requirements.
Surinder Sharma said that very few empirical studies examining the various issues
related to the quality of management education in India have been conducted so far.
Chaudhary (1993) to accomplish something, management education has to be made applicable
and approachable to the surroundings which it seek to serve.Till 1995 there were only 5 MIs in
Punjab but the mushrooming MIs at the end of the 2008 was 84.There was no any steady
INCON - XI 2016 213

growth of the MIs. But the main challenges remain same of the quality education to the
students. Even by the management of the Institutions did not take this issue as a serious one.
Issues and challenges
Running any management institution is not an easy task. There are so many hurdles and
difficulties in running the management intuitions. May be due to lack of knowledge of
legislative norms to run the MI or purposefully ignoring it to avoid the expenses and increase
the profit through MI ...etc. Sarita Chaudhary also focused on the issue that though there are
ample of MIs mainly after 2010(increase of 70% MIs) but what about the quality of staff ? She
focused on few Issues of Management Institution Staff like:
 Lack of highly qualified and experienced teaching staff
 Planning of Syllabus and teaching material
 Principles and Ethos in B-Schools
 Coordination between Industry and Management Institution.
 Lack of interest in Research Work
 Practical knowledge about the corporate world.
It can be concluded that there is a need of makeover of the management education in
connection to the current business world because the MIs in India are not in enough touch with
the real world. For this the Government has to redesign the syllabi, bridge the gap between the
corporate world and the education provided...etc. And lastly she also added that to make
certain the excellence in management education addition of BPR, IDR & ISO9000 and
ISO1000 etc. can be implemented.
According Gurpreet Singh Gill(16-May-2013) The report of Carnegie Foundation Study
of 1959 focused on few serious but important issues like:
1. Lack of qualification and experience as per the job analysis
2. Too many part time teaching staff and non teaching staff.
3. The management with mismanagement in the sense like there is lack of strategic intent
of MIs.
After 1990 the so many questions raised about the standard and the quality of the
business education. It was also criticized that during 1992-92 that B-schools are not following
the proper syllabi but they do what they wish and teaching to the students. The main purpose
was not achieved by them.
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INCON - XI 2016 214

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[17] Fabrice Hénard16 June 2009 ; Review on Quality Teaching in Higher Education; OCED
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INCON - XI 2016 217

Impact of Long Working Hours on Health of Women Employees Working

in IT/BPO Sector
Ms. Sneha Alan Ms. Kajal Maheshwari
Assistant Professor S.B. Patil Institute Assistant Professor S.B. Patil Institute
of Management, Pune (India) of Management, Pune (India)
Sector No. 26, Near Akurdi Railway Station Sector No. 26, Near Akurdi Railway Station,
Nigdi, Pradhikaran , Pune -44 Nigdi, Pradhikaran , Pune -44
snehaalan19@gmail.com kajaljuly28@gmail.com
ABSTRACT:
This paper examines the impact of long working hours on health of women
employees working in IT/BPO sector. The sample consisted of 413 women employees
working IT/BPO sector of Pune region. A four group between subjects MANOVA was
conducted on 5 dependent variables (Tired and exhausted, Health effect, Can’t relax,
Mental stress, Behavioural changes) and Univariate ANOVA was conducted on each
dependent variable separately to determine the locus of statistically significant
multivariate effect.. The results from MANOVA revealed that there is a significant
(negative) impact of long working hours on health of women employees .ANOVA results
for impact of long working hours on each dependent variable of health: shows that due
to long working hours their mental and physical health is affected to a large extent, tired
and exhausted to large extent, can’t relax , mental stress to a large extent and lot of
behavioural changes took place .Factorial ANOVA for moderation was done to find
whether work life balance policies influences the relationship between long working
hours and health. The results showed that work life balance policies have no impact on
the relationship between long working hours and health.
Key words : women employees, long working hours , health, work life balance policies
1. Introduction:
The advent of Information technology and BPO revolution in India has brought a change
in the employment opportunities and entrepreneurial development in Indian IT industry at an
unimaginable speed. The prosperity of IT/BPO industry is an outcome of Western inventions
and requirements, the western values associated with the western material affluence started
seeping into the Indian business organizations. This also brought in the policy of “Perform or
Perish” to Indian IT/BPO sector. The employees started working more and more to sustain the
competition and slowly lost the purpose for which they started working in IT sector.
As the time changed life of women has also been changed. In India women have
changed her life to an extreme limit that she is getting educated and earning equal to her
husband. But she still cooks and washes and runs the house also. Although, over the years
women in India have struggled to establish an identity and create a mark in the social as well
as in the organizational platforms, but with the increase in educational institutions and
training, more and more women are entering into professional careers. In fact between 2001
and 2009 the participation of women in workforce to a large extent in IT/BPO sector. This is
because India is a developing country and growing of middle class is more in the country
INCON - XI 2016 218

.Most of the women is joining IT/ BPO sector, good salary package, sitting job, challenging
job opportunities, no gender based selection, performance based promotions etc
2. Literature review
(Sandra Fredman, 2005) This paper had found the impact of hectic work schedule,
stress and long working hours on decreasing fertility rate of women employees. The evidences
are according to established theory, increased female employment is correlated with decreased
fertility. However, as female labour market participation has changed, so has the link between
fertility and female employment. In the 1970s and 1980s, countries with low female
employment rates had higher fertility rates. By 2002 the relationship had reversed: OECD
countries with higher rates of female employment also tended to have high fertility rates. This
change is directly related to public policy. Castles’ analysis of the most recent OECD figures
shows that countries with the best developed family friendly policies have in fact been the
most successful in counteracting decreased fertility. Thus in 1998, the highest levels of fertility
were found where institutional support for gender equality and women’s opportunities were
greatest, where traditional family values were weakest and where employment structures were
most welcoming to women.
(Sekine et al., 2010) This study found that job strain, shift work and long working
hours, and high levels of family-to-work and work-to-family conflict, are associated with poor
physical and mental.. Japanese men free from child care and domestic tasks, and thus able to
concentrate on their working lives, while women have to face the difficulty of combining
employment and family roles because they play a major role in taking care of child.
(Burke and Cooper ,2008) also this research reported that long working hours is
associated with unhealthy lifestyle choices, such as smoking, coffee intake and alcohol
consumption, lack of exercise and poor diet. Thus long working hours leads to unhealthy life
style which lead to a higher risk of coronary heart disease and poorer overall health from a
young age.
(Dewe P. and Kompier M., 2008) In this paper it was reported that extensive research
has been carried out, mainly in the United States and Europe, on the links between long
working hours and health and well-being, particularly in relation to stress and other mental
health problems, and this issue is high on the agenda of many European
Loerch et al. (1989) tried to find out the relationships among family variables and three
sources of work family conflict (time, strain and behaviour based) for both men and women.
Family domain variables examined included time based (number of children, spouse work
hours per week, couple’s employment status) strain based (conflict within family, spouse
support, quality of experience in spouse or parent role) and behaviour based antecedents,
family intrusions (parental, marital, home responsibilities) and role involvement. The results
indicated that the time based antecedents (number of children, spouse work hours, couple’s
employment status) were not significantly related to any form of work family conflict for men
or women. Strain based antecedent, conflict within family, was found to have a positive
relationship with work family conflict. However, the negative relationship of other strain
based antecedents (spouse support, quality of spouse and parental experiences) and work
family conflict was not supported. The behaviour based antecedent, role congruity, was not
significantly related to any form of work family conflict. The variable of role involvement
significantly predicted only the time based conflict for men.
INCON - XI 2016 219

3. Research Methodology
Problem Statement
Many women are opting for jobs in IT/BPO sector due to good salary package, sitting
job, challenging job opportunities, no gender based selection, performance based promotions
etc. but there is a rising concern on the flip side - the long-working hours and stress-filled lives
have affected family well being of women employees. So the researcher want to find out
whether there is a significant impact of working hours on health of women employees and
what measures can be taken by the organization to reduce the health problems
Objectives of the study
1. To find the impact of long working hour on health of women employees working in
IT/BPO sector.
2. To study the work life balance policies provided by the organization is effective to
support health of women employees.
Hypothesis of the study
1. Ho: Working hours in day does not affect health.
H1: Working hours in a day does affect health.
2. Ho: Work life balance policies do not influence relationship between working hours and
health. (Interaction effect is 0)
H1: Work life balance policies do influence relationship between working hours and
health. (Interaction effect is not 0)
.Scope of the study
1. Women employees working in IT/BPO sector of Pune City.
2. The study tries to find out the impact of long working hours on health of women
employees.
Limitation of the study
1. The study is limited to only women employees in IT/BPO sector.
2. The study is limited to Pune City.
Data Collection
Primary Method of Data Collection:
(a) Questionnaires
Universe: IT/BPO Companies in Pune City
Sample design: Random Sampling was be used to select 10% of the IT/BPO companies
from Pune and from these companies women employees were selected randomly.
Sample Size: 413 women employees of IT/BPO organization of Pune city
Respondents: Women employees of IT/BPO organisation
Secondary Method of Data Collection
(a) E- Journals
(b) Journals
INCON - XI 2016 220

(c) Research papers
(d) Websites
(e) Publications- Periodicals, Magazine, Newspaper
Data Analysis and Interpretation
Statistical tool MANOVA and ANOVA is used to test the hypothesis
Conclusion
Conclusion is based on the data analysis and interpretation
4. Data Analysis and Interpretation
a. Research Question:
Does working hours in a day influence Health Problems( Mental health and Physical
Health)?
Statistical Test: MANOVA
Variables and Measurement
Independent Variable : Working hours in a day was measured using nominal scale (1-
Less than 9 hours,2- 9 to 10 hours, 3-10 to 11 hours, 4-12 hours and above) .
Dependent Variable:
All dependents variables were measured using interval scale (1 – very less extent, 2 –
less extent, 3 – some extent, 4 – large extent, 5 – very large extent)
1. Tired and exhausted
2. Health Effect
3. Can’t Relax
4. Mental Stress
5. Behavioural Change
Ho: Working hours in day does not affect health.
H1: Working hours in a day does affect health.
Level of Significance Alpha = 0.05
Table 4.3.a.1 : Descriptive Statistics – Working hours on health
Working hours in a day Mean Std. Deviation N
Tired and exhausted Less than 9 hours 3.14 1.268 28
9 to 10 hours 3.76 1.094 220
10 to 11 hours 3.95 1.070 123
12 hours and above 4.12 .893 33
Total 3.80 1.102 404
Health Effect Less than 9 hours 3.1786 1.15642 28
9 to 10 hours 3.5500 1.22837 220
10 to 11 hours 3.9512 1.10775 123
12 hours and above 4.2121 1.43086 33
INCON - XI 2016 221

Working hours in a day Mean Std. Deviation N
Total 3.7005 1.23107 404
Can’t Relax Less than 9 hours 2.7143 .71270 28
9 to 10 hours 3.0273 .93104 220
10 to 11 hours 3.4309 1.30624 123
12 hours and above 4.3636 .78335 33
Total 3.2376 1.10849 404
Mental Stress Less than 9 hours 2.9643 .79266 28
9 to 10 hours 3.6818 1.07637 220
10 to 11 hours 4.1789 .92358 123
12 hours and above 4.7273 .51676 33
Total 3.8688 1.05676 404
Behavioural Change Less than 9 hours 3.9643 1.17006 28
9 to 10 hours 3.7045 1.19702 220
10 to 11 hours 4.1301 .94052 123
12 hours and above 4.3939 .78817 33
Total 3.9084 1.11566 404
A four group between subjects MANOVA was conducted on 5 Dependent variables
(Tired and exhausted, Health effect, Can’t relax, Mental stress, Behavioural changes)
The Bartlett's Test of Sphericity is statistically significant, p value is less than 0.001
indicating sufficient Correlation between dependent variable to proceed with the analysis.
Sample consisted of 404 respondents Box's Test of Equality of Covariance Matrices was
statistically significant (p is less than 0.001)
Indicating that the observed covariance matrices of the dependent variable were unequal
across independent variable groups, hence a Pillai's Trace was employed to evaluate all
multivariate effects. The Pillai's Trace was significant at 5% level of significance.
Table 4.3.a.2 : Multivariate Testsa - Working hours on health
Effect Value F Hypothesis df Error df Sig.
Working Pillai's Trace .221 6.342 15.000 1194.000 .000
Hours Wilks' Lambda .789 6.549 15.000 1093.583 .000
Hotelling's Trace .255 6.722 15.000 1184.000 .000
c
Roy's Largest Root .195 15.557 5.000 398.000 .000
Pillai's Trace = 0.221 f (15,1194) = 6.342 ,P value = 0.000
Conclusion since p value is less than 0.05 the null hypothesis is rejected, hence it
can be concluded that working hours in a day has a significant (adverse) impact on
Health problems (mental and physical health).
Since Pillai Trace was significant, Univariate ANOVA was conducted on each
dependent variable separately to determine the locus of statistically significant multivariate
effect.
INCON - XI 2016 222

Since impact of working hours is examined on each dependent variable separately we
use Bonferroni corrected alpha level to avoid alpha inflation, we therefore divide alpha by
number of dependent variables. Hence the new alpha = 0.05/5 = 0.01
From the table labelled Tests of Between-Subjects Effects
Source Dependent Variable df F Error in df
Working Hours Tired and exhausted 3 5.286 400
Health Effect 3 6.642 400
Can’t Relax 3 19.733 400
Mental Stress 3 23.218 400
Behavioural Change 3 6.423 400
Table 4.3.a.3 : Tests of Between-Subjects Effects - Working hours on health
Source Dependent Variable Sig. Partial Eta Squared
Working Hours Tired and exhausted .001 .038
Health Effect .000 .047
Can’t Relax .000 .129
Mental Stress .000 .148
Behavioural Change .000 .046
It can be seen that working hours in a day has a significant effect on getting tired and
exhausted [F (3 , 400 ) = 5.286, p = 0.001], working hours in a day has a significant effect on
health [F (3 , 400 ) = 6.642 , p = 0.000], working hours in a day has a significant effect on cant
relax [F (3 , 400 ) = 19.733 , p = 0.000], working hours in a day has a significant effect on
Mental stress [F (3 , 400 ) = 23.218, p = 0.000], working hours in a day has a significant effect
on Behavioural Changes [F (3 , 400 ) = 6.423, p = .000
Research Question
b. Whether work life balance policies influences the relationship between working
hours and health?
Statistical Test: Factorial ANOVA for moderation (Interaction Effect)
Ho: Work life balance policies do not influence relationship between working hours and
health. (Interaction effect is 0)
H1: Work life balance policies do influence relationship between working hours and
health. (Interaction effect is not 0)
Level of significance α = 0.05
Table 4.7.i. : Tests of Between-Subjects Effects Dependent Variable: Health affected
Source Type III Sum of Df Mean F Sig.
Squares Square
Corrected Model 93.951a 6 15.658 35.240 .000
Intercept 1969.475 1 1969.475 4432.395 .000
Ineffective Effective 13.787 1 13.787 31.029 .000
INCON - XI 2016 223

Source Type III Sum of Df Mean F Sig.
Squares Square
Working Hours 9.377 3 3.126 7.034 .000
Ineffective Effective * .849 2 .425 .956 .385
Working Hours
Error 175.069 394 .444
Total 5784.640 401
Corrected Total 269.019 400
Interaction effect F (2, 394) = 0.956
P value = 0.385
Since p value is more than 0.05 the null hypothesis is retained, hence it can be concluded
that work life balance policies do not impact the relationship between working hours and
health.
5. Findings based on descriptive statistics and frequency distribution
(a) MANOVA shows that “working hours in a day” has an adverse impact on Health of
women employees [Pillai's Trace = 0.221, F(15,1194) = 6.342 and p value = 0.000]
ANOVA results for impact of working hours in a day on each dependent variable of
health show that –
Working hours in a day has an adverse effect of women employees on following:
 “Women employees’ getting tired and exhausted” [F (3 , 400 ) = 5.286, p = 0.001],
 “Women employees’ physical on health” [F (3 , 400 ) = 6.642 , p = 0.000],
 “Women employees’ can’t relax after work” [F (3 , 400 ) = 19.733 , p = 0.000],
 “Mental stress level of women employees’ ” [F (3 , 400 ) = 23.218 , p = 0.000],
 “Behavioural Changes in women employees’ ” [F (3 , 400 ) = 6.423, p = .000] .
 The mean value: The women employees who “work for more than 12 hours in a day”
their mean value of all dependent variable was found to be highest, i.e. to a large extent
respondents got tired and exhausted (4.12),
 Physical health was affected to a large extent (4.21), respondents felt to a large extent
they can’t relax after coming home (4.36), to a large extent increase in mental stress
level (4.72), changes in behaviour to a large extent (4.39).
Hence it can be concluded from the mean value of all dependent variables of health that
women employees who work for more than 12 hours a days , their health was getting badly
affected (to a large extent ).
6. Conclusion
This research tried to examine the impact of long working hours on health of women
employees working in IT/BPO sector.
Statistical tool MANOVA and ANOVA was used to find the impact of long working
hours on health of women employees working in IT/BPO sector.
From the study it can be concluded that “long working hours” had a significant impact
on “health”, i.e. women employees who worked for more than 12 hours, :to a large extent
INCON - XI 2016 224

respondents got tired and exhausted , Physical health was affected to a large extent, they can’t
relax after coming home, increase in mental stress level, changes in behaviour to a large extent
Hence it is concluded that long working hours is adversely affecting the health of women
employees’.
Factorial ANOVA for moderation was done to find whether work life balance policies
influences the relationship between long working hours and health. The results showed that
work life balance policies have no impact on the relationship between long working hours and
health.
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Management & Social Sciences Research,Volume 1, No.2, , 5.
 Muhammed Jamal. (2004). Burnout, Stress and health of employees on non standard
work schedules : A study of canadian Workers. Stress and health Volume 20 , 113-119.
 Nathalie St-Amour,Johanne Laverdure and Annie Devault. (2007). THE Difficulty of
Balancing Work and Family Life : Impact on the Physical Andmental Health of Quebec
Families. Institut national de santé publique du Québec , 1-34.
 Tammy D. Allen and Jeremy Armstrong. (2006). Further Examination of the Link
Between Work-Family Conflict and Physical Health. American Behavioral Scientist ,
19.

INCON - XI 2016 225

Gender Diversity A Shift in Paradigm: Advancing Women’s Equality at

Workplace
Ms. Deepti Sharma Ms. Gazal Yadav
Research Scholar Research Scholar,
Rajasthan University, Jaipur (India) PACIFIC University, Udaipur
Email:deeptisharma121@gmail.com Email: gazalyadav@gmail.com
ABSTRACT:
Today the percentage of women working in the organizations is increasing day by
day. The gender diversity has become a challenge for the organizations now. From the
various angles, women have lain up with much adversity in the past, and sadly some still
face huge challenges today. Women are moving center stage as political, social and
economic beings. Women constitute a big proportion of employees in the organization
today and now it is the role of the organization to take appropriate steps for managing
the diversity and providing appropriate platform for further development.
This paper discovers and assesses the accomplishments made by women in
different fields in the country and emergence of leadership qualities in females. Over the
last few decades, the number of women in board has also increased in corporate world.
Further, women can add great value to the organization and for the same reason certain
percentage has been fixed in order to build a balanced talent pipeline. Women have
proved themselves as better at decision making, bringing new innovation, as well as
have the ability to multi-task, hence can have great role on organizational performance.
This paper will focus on the current scenario of gender gap that exists in organization,
despite of the fact that Indian women has emerged as a good leader in various fields. It
aims to determine the relationship between gender and leadership skills and their
success. It is based on the secondary data examines issues related with gender diversity
and an attempt has been made to carve out solutions for reducing the gender gap so
that it can help in the empowerment of women in organizations.
Introduction
Gender diversity in leadership teams of businesses is no longer seen as an option but a
pre-requisite for innovation and competitiveness in the 21st century. Women have started
entering the workforces like never before from the sixties and seventies. Globalization and
better economic conditions has helped to promote female education and this in turn has helped
to increase the number of female employees in an organization. On the surface the idea of
gender equality seems quite forthright as it provides women and men with equal opportunities.
There has been a paradigm shift from earlier years when roles of men and women were
clearly defined: a man was supposed to be the bread earner while a woman was supposed to
take care of the household. In India women business leaders or women entrepreneurs who are
excelling and scaling new heights. Still there are enough statistics and studies which share the
gender inequality that exists in organizations, globally as well as India. In fact, a recent
Research done by Catalyst, a non-profit organization indicates that women CEOs only form 11
percent of the CEO pool in India.
Organizations now hunt for talented employees and as the workforce becomes more
heterogeneous, organizations will have to serve the diverse needs of this workforce or they
INCON - XI 2016 226
will lose them to their competitors. Organizations have recognize the wider diversity of needs
of employees today and set up systems to accommodate them all by allowing them to have
more flexible work arrangements and shorter hours and lesser responsibility in exchange for
lower pay and limited career growth. Those who discriminate against women are forced to
select workers from a smaller pool, reducing their ability to find top performers.
Today, however, women have integrated themselves into every field of activity and
every kind of industry smoothly and skillfully. Whether travelling twenty days of the month or
accepting transfers, they are as performance-oriented, sincere, competent and persevering as
their male counterparts, if not more. Their presence in the corporate world is now more a rule
than an exception such that a feminist agenda and, in fact, any special reference to women in
business seems obsolete. The conventional misgivings with regard to their capabilities to
handle the conflict between the demands of the home, family and profession are redundant and
irrelevant in
the present context. The fact is that there is a much greater demand of women executives
than there is a supply. Their consumer expertise in a consumer-oriented economy places them
in an enviable position where they are given priority at management institutes as well as in
recruitment for managerial positions. Companies are competing tooth and nail to hire the best
female executives with "women-friendly" personnel policies.
The personnel policies of some of the most successful companies in the "growth" sector,
say Hindustan Lever, have become so "women friendly" that the male executives may well
face some disconcertment. India has some of very worthy examples where women have
marked their place not only in country but also globally. They are considering as most
powerful business women of the world like Indira Nooyi, Chanda Kochhar according to
FORBES, who have taken their organization on world platform and implemented new
strategies. Naina Lal Kidwai is also the Executive Director on the Board of Hong Kong and
Shanghai Banking Corporation Limited and Country Head of HSBC is recognized in India and
abroad with several awards and listings for leadership and business.
Barriers in Female Leadership
Advancing gender diversity is a key focus area that organizations should look to, armed
with the knowledge that there is still significant progress to make before most workplaces
achieve true gender equality. Women are still significantly underrepresented at all levels in the
workforce worldwide. A woman faces lot of barriers which restricts her from success and
leadership roles.
 Male dominated industry and stereotype against women: Today more of the
corporates still have male dominance and the stereotype for women prevails about their
expertise is more in managing their homes and family in spite of managing an
organization. This stereotype does not allow women’s to come up in ladder of success
and in leadership roles.
 Women faces the challenge for counting less job experience: Women are assumed to
have more responsible for their family and hence supposed to devote more time for the
same, which results in lowering down the number of working hours and thereby less
experience. This is one of the reasons for women lacking in promotion and leadership
roles in an organization.
INCON - XI 2016 227

 Women are believed to have an attitude for an aversion to Competition: Women are
considered to have more preference towards non- competitive environment which limit
themselves for leadership positions.
 Women’s humble and polite nature is taken as sign of less Confidence: In general,
men are characterized as more confident and women as less confident. Women have
polite nature and humble approach which people take as sign of lack of confidence.
Women are considered as less confident regarding financial matters and thus believed as
women can‘t take strong decision.
 Considered as highly emotional so believed that they can’t take strong and firm
decision: Women are thought to be more emotional and react to situations with greater
emotional intensity than men. Their emotional behaviors make them indecisive.
 Women’s Less Bluffing nature is considered as their weakness in Business: Men
show a greater willingness to bluff, which ties into the fact that greater confidence.
Undoubtedly causes more optimistic projections and judgments. Women on the other
side is considered as less buffing personality and hence less preferred.
Ways to Empower Women
It is a challenging task to create gender diversity in a systematic and business linked
manner. Gender diversity is not a goal to achieve but the means to achieve business goals in
today’s business landscape. Women count as huge resource which needs to be channeled in
proper way so that it can help in economic growth of the country. As business leaders and
policy-makers need the aggregate talents of both women and men .There can be various ways
as to how manage gender diversity and promote women as a leader is an organization.
 Diversify performance models. Another way companies can make diversity programs
more inclusive is by evolving performance and leadership models so they are more
gender neutral that is, so they offset the negative impact of maternity leaves and work
flexibility on career tracks. They can also use evaluation criteria that value a wide range
of leadership habits and techniques. Beyond the implementation of specific measures to
recruit, retain, promote, and develop women, companies need to create a corporate
culture that welcomes various leadership styles.
 Developing leadership programs – It is important to conduct specific programs that
focus on overall grooming of in-house women leadership talent. Also, these programs
must address gap areas which seem to have been created because of inherent perception.
Role biases need to be addressed by ensuring that high potential women receive the
same skills, knowledge and experience as the men, to be able to prepare for such roles.
Apart from formal programs on leadership that also give women the opportunity to
spend time with their role models and senior management who carry similar aspirations.
 Alignment of key HR processes to this goal – It is important to align recruitment,
rewards or talent development processes with the same objective, which are all-inclusive
and assess the person on performance and potential.
 Expanding the reach of financial and digital services to enable women
entrepreneurs -Globally, the rate of financial inclusion is especially linked to women’s
presence in management and leadership roles. Experience from other countries that have
active programmes designed to enhance financial inclusion among women—including
M-Pesain Kenya and the Grameen Bank in Bangladesh—have shown that micro-
INCON - XI 2016 228

payments and microfinance can potentially be a very effective tool to enable the
participation of women as entrepreneurs.
 Consideration for Quotas and Government Laws for Female Security and Safety-In
developing country like India where females are still lacking behind in some Industries
can be promoted through Quotas system. This will give enough opportunity to female
employees to come up in an organization. Also Government should craft certain more
laws for women so that they feel safe and secure.
 Right mix between organization, women employee and knowledge-There should be
right mix of women competency, organization support and knowledge enhancement for
bringing gender diversity and women leadership.
 Communication strategy – There are direct and indirect channels through which the
organization can share the message of being gender diverse and can bring acceptance
among employees.
 On Scorecards – Organizations must incorporate diversity in their overall scorecard or
even the HR scorecard. It is also essential to develop these kinds of policies.
 Career Flexibility Practice in organization-Flexible working is one of the corporate
best practices which support women to come forward as leaders. This will in turn help
to have work life balance and get back to career after having a family break.
 Developing Programmes for Networking, Mentoring and Sponsoring-Organizations
should consider a formal sponsorship approach to securing the best from its talent pool.
Men are better at getting sponsors and being sponsors –women need to priorities
securing a sponsor in the workplace but also to become a sponsor.
 Increase Men awareness-Higher men’s awareness of gender inequality will help to
solve the problem of gender equality as once they are aware and have right attitude
towards women employees in an organization will provide a helping edge for gender
equality.
Conclusion
Focusing on diversity in the workplace is an essential step in building a great culture.
Advancing gender diversity is a key focus area that organizations should look to, armed with
the knowledge that there is still significant progress to make before most workplaces achieve
true gender diversity. Gender diversity is a business imperative management understands the
business benefits of diversity which could be manifold like better perspectives in decision
making and innovation and then sets the right targets for some of the outcome metrics and
drive them through focused programs. If an organization underpins its diversity agenda on
solid understanding of why they are driving it, then institutionalizing would be very similar to
any other business objective like growth, productivity and the expected business outcomes
would help the leaders to internalize the diversity agenda.
Organizations should work towards changing the culture of the organization by
institutionalizing gender inclusion across processes and introducing policies that will support
women employees when needed while maintaining meritocracy. Gender inclusion must ensure
that women do not fall out of the talent pipeline. Top management needs to be committed
about the mandate and cascade commitment regarding gender equality across different levels.
They need to break the comfort zone and open their minds to non- traditional and non- tested
ways of managing talent and to revisit their policies and programs to widen the appeal to
INCON - XI 2016 229

women employees. This is an era to open its way for developing women as new leaders and
managing gender diversity in organisation for achieving a grand success.
REFERENCES:
 Amidu, M., & Abor, J. (2006). Gender and the Composition of Corporate Boards A
Ghanaian Study. Indian Journal of Gender Studies, 13(1), 83-95.
 Button, S. B. (2001). Organizational efforts to affirm sexual diversity: a cross-level
examination. Journal of Applied Psychology, 86, 17−28
 Bertrand, M., Goldin, C., & Katz, F. (2010). Dynamics of the Gender Gap for Young
Professionals in the Financial and Corporate Sectors. American Economic Journal:
Applied Economics.
 Bilimoria, D. (2006). The Relationship between Women Corporate Directors and
Women Corporate Officers. Journal of Managerial Issues, 18(1): 47-61
 Chattopadhyay, R., Duflo, E., Pande, R., & Topalova, P. (2009). Powerful Women:
Does Exposure Reduce Bias? Quarterly Journal of Economics, 124(4).
 Caul, M. (2001). Political Parties and the Adoption of Candidate Gender Quotas: A
Cross-National Analysis. The Journal of Politics 63(4): 1214-1229.
 Gill, S. (2010). Is gender inclusivity an answer to ethical issues in business? An Indian
stance. Gender in Management: An International Journal, 25(1), 37-63.
 Eagly, A. & Caril, L. (2003). The Female Leadership Advantage: An Evaluation of the
Evidence. The Leadership Quarterly, 14(6): 807-834.
 Hewlett, S A (2002). “Executive Women and the myth of having it all”. Howard
Business Review 80(4), 66-73
 Punia, B. K. (2005). Emerging Gender Diversity and Male Stereotypes: The Changing
Indian Business Scenario. Indian Journal of Industrial Relations, 188-205.
 Sahai, S. (2004). TRIPS and biodiversity: a gender perspective. Gender & Development,
12(2), 58-65.
 Yusuf, A. (2005). Workforce diversity in small enterprises: implications on firm
performance. International Journal of Management and Enterprise Development, 2(2),
240-256.
 Gender and Livelihoods Impacts of Clean Cookstoves in South Asia, Global Alliance for
Clean Cookstoves, May, 2015

INCON - XI 2016 230

The Impact of Training and Development on Employees Performance

Mrs. Sarita Goyal Mrs. Kirti Bora
(Assistant Professor) (Assistant Professor)
CSIT,Chinchwad CSIT,Chinchwad
PUNE, India PUNE, India
ABSTRACT:
The purpose of this study was to investigate whether Training & Development has
impact on employees performance .Data for the paper have been collected through
secondary source and checked through statistical tools .The Training has emerged as a
significant investment in the corporate world. No professional ,institutions or
organizations can survive without training of its manpower. Training becomes
inevitable. On the other hand ,the impact of training is never immediate on the output of
organization. It is a long drown multistage process. Training is defined as a process of
giving value adding inputs to individuals/ groups in the form of knowledge ,skill &
attitude which is must to carry out job.
From the observation we analysis that ,there are two variable that is Training and
Development(Interdependent variable) and Employee Performance(Dependent
Variable). A positive correlation exist between these two variables .Relevant Literatures
were also studied about topics related to this research .Recommendation and
Conclusion form the last part of this paper.
Keywords: Training, Development, Employees, Performance, Trainee, Environment
Introduction
Training is one of the most important aspects of labor development .It has gained
significance since the 1960”s & continuously to be growing in importance in all the
organization. The essential element in any commercial enterprise are Material, Equipment &
Manpower .Manpower, out of aii resources is most important because it is only human
resource which can act & React. A company has to plan & it has to develop human being.
As a society is changing rapidly, training & development is not only an active that is
desirable as an activity. An organization must undertake to maintaining valuable & knowledge
workforce. Training is an organizational procedure which brings about a semi permanent
change in behavior for a definite purpose .The effectiveness of individual or his efficiency
plays a major role in reaching organizational objectives through training. Training is necessary
for all round development of job related skills and efficiency of the employees at work.
What is Training?
Training is process of learning a sequence of programmed behavior. It is application of
knowledge. It gives awareness of the rules & procedure to guide their behavior. It improves
there performance on the present job or prepare them for an intended job. Training is set of
increasing knowledge & skill of an employee for doing a particular Job.
According to J.P.CHAMPBELL
INCON - XI 2016 231

Training refuges only to instruction in the technical & mechanical questions specifically
stated training to organization procedure by which people learn knowledge & skill for definite
purpose.
Training needs occurred in the following circumstances
1. To match the employee specifications with the job requirements & organization needs.
2. Organizational viability & transformation process
3. Technological Advance
4. Organizational complexity
5. Human Relations
6. change in job assignment
Generally there are five steps in training & Development process:
1. Needs Analysis
2. Instructional Design
3. Validation
4. Implementation
5. Evaluation & follow-up.
Methods of Training
{A} On the JOB TRAINING
 Job Rotation
 Coaching
 Job Instruction
 Committee Assignment
 Junior Board
{B} Off the JOB TRAINING
 Vestibule Training
 Role – Playing
 Lecture Method
 Conference & Discussion
 Programmed Instruction
What is Development?
Development is related process. It covers not only those activities which improves job
performance but also those , which bring about growth of personality, help individuals in the
progress towards maturity & actualization of their potential capacities.
So, that the main purpose of Development is not only to become good employee but
also to become better men & women.
Training a person for a bigger development includes not only imparting specific skills &
knowledge but also , imparting certain personality &interpretation of knowledge. Training &
development opportunities involve active participation by employees. This approach is stated
by following proverb:
“ I hear- I Forget, I see- I Remember,I do- I Understand”
INCON - XI 2016 232

Benefits of Training:
A well planned & a well –executed training program should result in
 Reduction in Waste & Spoilage
 Reduction in supervisors burden
 Improvement in methods of work reduction in learning time
 Reduction in machines breakage & maintenance.
 Reduction in accident rate.
 Improvement in quality of product.
 Improvement in production rate.
 Improvement of moral & reduction in grievance.
 Reduction in manpower obsolescence.
 Enlarge skill personal growth.
Review of Literature:
Training and Development basically deals with the acquisition of understanding, know-
how, techniques and practices. In fact, training and development is one of the imperatives of
human resource management as it can improve performance at individual, collegial and
organizational levels. As the process of ‘increasing one’s capacity to take action, organizations
are now increasingly becoming particular with organizational learning and therefore collective
development. Organizational learning, on the other hand, refers to the “efficient procedure to
process, interpret and respond to both internal and external information of a predominantly
explicit nature. According to Easterby-Smith (1999), the emergence of the concept of
organizational learning is central on the hitherto idea that prior advocacies of learning are
tended to its commercial significance and are lacking of empirical information on learning
processes.
Strategically, organizational learning, which makes use of training and development as
one of the several responses, deals with the acquisition of understanding, know-how,
techniques and practices. These intellectual intangibles can be translated into an organizational
resource through the people that acquire, infer and utilize such towards the achievement of the
organization-wide training and development (Armstrong, 2006). Training and development are
planned learning experiences which teach employees how to perform current and future jobs
more effectively. Sims (2002) emphasizes that training focuses on present jobs while
development prepares employees for possible future jobs. Basically, the objective of training
and development is to contribute to the organization's overall goal.
Closing the skills gap is now a critical area of human resource development for
organizations to continuously penetrate the market. Skills gap basically threatens the
productivity and competitiveness both in organizational and operational levels. This requires
that human resource management professionals should start the cultivation of the workforce
from the recruitment period. However, this is not easy considering that there are specific
works which require customization of skills and that not all newly hired employees acquire
social skills aside from the basic skills. In responding to the challenges of the skills gap and
skills deficiency, HR professionals have to develop programs that will address the problem
(Sims, 2006).
Building the organization hence is an imperative for the existence and survival of
modern organizations. Consistently, companies are investing on their internal customers or
INCON - XI 2016 233

employees thus taking advantage of the human capital management. Sense of ownership is
also important, requiring HR professionals to develop strategies that will ensure superior
knowledge, skills and experience to settle within the workforce. Learning activities shall put
skills enhancement and development assignments at its core as well as empowerment and
career development. This is lifelong learning which guide the organizations particularly
human resource department to make an ongoing investment with organizational members and
help them build their competencies (Sims, 2006).
Purpose of the study
The main purpose of this study was to investigate the impact of training and
development on Employee Performance.
Research Objectives
1 To identify perceptions of the employees on how training and development proved to be
beneficial to them;
2 To identify employees’ competency levels as enhanced by the training and development
implemented;
3 To examine how training and development contribute to the individual performance and
productivity;
 To make statistical study of the same to find out the star areas as well as the problem
areas.
 To know the attitude of the worker towards training programme arranged for them.
Research Methodology is a systematic approach of identifying the problem , collecting
information analyazing & provide alternative solution.The researcher collects information
through the secondary data.
Secondary Data:
1) Various files of administrative departmen
2) Annual Training Reports
3) Data from Training Department
4) Training Manual.
Data Analysis:
Secondary Data has been analysed using percentage analysis. By using M.S Exel , Pie
chart have been used to present analysed data.In broad sense, secondary data means data has
been collected by someone else.By taking an interview of H.R. Manager of reputed company
in Pimpri-Chinchwad & asking him some question related to employee & their Training.From
his response we analysed data as below.
Q.1 How long employee have been working in Your Organisation?

Option Below 2 Years 2-5 Years 5-10 Years Above 10 Years
No.Of Emloyees 6 10 6 38
Percentage 10% 17% 10% 63%
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Q.2 How many training needs identified by your organization?

option By Individual Based on p. Based on Any
systematic Assessment & appraisal feedback of other
Analysis requirement your superior
No.of 8 16 14 18 4
employee
percentage 13% 27% 23% 30% 7%
Q. 3 Whether your employees are satisfied by the schedule of the training program?
option Yes No Can”t Say
No.of Employee 42 6 12
70% 10% 20%
Q.4 Which type of training methods are followed in your organization?

Option On –the job Off-the-job Both
No.of Emloyee 22 6 32
Percentage 37% 10% 53%
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Q.5 In case on-the –job training,which type of training ,do you prefer?
Option Role Coaching Job Committee Any
playing instruction assignment other
No.of 22 16 12 6 4
employee
Percentage 37% 26% 20% 10% 7%
Q.6 Whether the training is evaluated after training programme?

Option Yes No Cannot say
No of employees 40 10 10
Q.7 Whom does the training is benefit?

Option organization employee Both
No of Employee 14 12 34
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Findings
A majority of employees agree to the fact that training improves their skill & knowledge
& supports in career development
Training is given on safety, shut down management,technical subject related to the
manufacturing process, motivation & stress relaxation.
Most of the employees satisfied with the duration & schedule of training program.
Most of the employees feel that they required further training in latest methods to
enhance their skill.
Most of the employees satisfied with the training instruction of trainer.
Negative point trainees having no technical background .
Some managers who gave the special training to their department employees are highly
motivated & giving high performances.
Suggestions
Training program should be made more innovative & interesting to make attractive to
the workers
Training modules should be perfectly designed to make more objects oriented.
Organisation should increase training program toward technical areas for more technical
people.
Trainees having no technical background are made compulsory to attend the programs
To fill in the training impact,gap, company should arrenge more outdoor training
program as the employees will feel fresh & will learn moreto improve through it.
 Special meditation room shold be provided where they will relax, get empowered
mentally & gain energy to achive their personal as well as organizational goals.
 Feedback should be collected from the trainings that how they implemented the learning
effects in their work & how much it Worked.
Limitations
During the course of the study , there were certain limitations , Researcher may collect
insufficient data for this research work because of limited time and vast topic of research.
INCON - XI 2016 237

Conclusion
As the increase of concentration on administrative management during these years,
HRM plays a more important role in managing an organization, such as the effects of HRM on
innovation, ‘new way of working principles ‘for working relations and enhancing employees’
capability. Training and Development is an important aspect of HRM. It is important for
organization to get skilled and capable employees for better performance, and employees will
be than competent when they have the knowledge and skill of doing the task. Training and
Development would provide opportunities to the employees to make a better career life and
get better position in organization. In doing so, organizations efficiency would be increased.
On the other hand, employees are the resources and assets of an organization if they are skilled
and trained would perform better than those who are unskilled and untrained. Therefore, the
purpose of this study was to find out the relationship between Training and Development and
Employees’ performance .
Biblography
Books:
 Raymond A Noe-Employee Training % Development
 C.R.Kothari – Research Methodology
 K.Ashwathappa – HRM
Others:
 HR Manuals.
Web Sites :
 www.adorpower.com
 www.google.com
 www.hrguide.com

INCON - XI 2016 238

A Study on Employee Retention Strategies & its Effect on Job Satisfaction

of the Employees in Manufacturing Industry (Pune)
Preeti Tilekar (Surkutwar) Dr. Asha Pachpande
Sinhgad Institute of Mgmt & Computer Director,ASM’S IBMR
Application ibmr@vsnl.net
preetitilekar@gmail.com
ABSTRACT:
In todays scenario retaining the employees in the organization is becoming a
challengeable job. Hiring knowledgeable people for the job is essential for an employer.
But retention is even more important than hiring. The employees are valuable assets to
the organization so it is the responsibility for the organization to develop the strategies
in order to retain the employees. Employee attrition may be due to various factors such
as lack of growth opportunities, dissatisfaction with the working environment, lower pay
etc... As soon as they feel dissatisfied with the current employer or the job, they switch
over to the next job. It is the responsibility of the organization to retain their valuable
asset that is employees of the organization.
Job satisfaction has even more impact while retaining the employees. It is must to
see whether the employee is motivated & satisfied so that we will find easier to retain
him. Through this study the researcher explores the Employee satisfaction towards Job
& work & the role it plays in retaining employees.
Key Words : Retention, Attrition, Dissatisfaction, Motivation
Introduction
Retaining talent has never been so important in the Indian scenario; however, things
have changed in recent years. In prominent Indian metros at least, there is no dearth of
opportunities for the best in the business, or even for the second or the third best. Retention of
key employees and treating attrition troubles has never been so important to companies.
In an intensely competitive environment, where HR managers are poaching from
eachother, organisations can either hold on to their employees tight or lose them tocompetition
. For gone are the days, when employees would stick to an employer for years for want of a
better choice. Now, opportunities abound. It is a fact that, retention of key employees is
critical to the long-term health and success of any organization.
Employee Retention involves five major things:
1. Compensation
2. Environment
3. Growth
4. Relationships
5. Support
If an organization is able to focus on all these areas, it can retain employees. Taking
employee retention very seriously companies or HR personnel have come up with various
retention schemes like "Bell Curve method" which means to provide good benefits and
incentives to employees those who fall within "Critical People" to the organization . Few of
them are as under:
INCON - XI 2016 239

1. Retention Bonus
2. Employee Reward Program
3. Career Development Program
4. Performance Based Bonus
5. Employee Referral Plans
It is not about managing retention, it is about managing people.
Literarure Review
Chandranshu Sinha (2012) through his research in two manufacturing industries found
out that , The factor analysis of the component ‘retention management strategies’ led to the
extraction of 3 factors each from both the organizations. The factors for EEPL* were
“competence & relationship oriented”, “scholastic & futuristic oriented” and “developmental
& reward oriented”; while for MBPL*, the factor were “relationship oriented”, “competence
& scholastic oriented” and “reward oriented”. The results indicate that these factors have
substantial roles to play in making employees stay and how at middle managerial level
different aspects are valued while deciding upon the retention strategies in similar contexts.
Retention is a complex concept and there is no single recipe for keeping employees with
a company. In literature, retention has been viewed as “an obligation to continue to do
business or exchange with a particular company on an ongoing basis” (Zineldin, 2000).
A more detailed and recent definition for the concept of retention is “customer liking,
identification, commitment, trust, readiness to recommend, and repurchase intentions, with the
first four being emotional-cognitive retention constructs, and the last two being behavioral
intentions” (Stauss et al., 2001).
Studies have also indicated that retention is driven by several key factors, which ought to
be managed congruently: organizational culture, communication, strategy, pay and benefits,
flexible work schedule and career development systems (Logan, 2000).
Increasing numbers of organization mergers and acquisitions have left employees
feeling displeased from the companies that they work and haunted by concerns of overall job
security. As a result, employees are now making strategic career moves to guarantee
employment that satisfy their need for security. On the other hand, employers have a need to
keep their stuff from leaving or going to work for other companies. In fact, companies that
offer employee development programs are finding success with retaining workers (Logan,
2000).
Abundant studies have hypothesized and empirically validated the link between
satisfaction and behavioral intentions and behaviors such as employee’s retention (Anderson
& Sullivan, 1993). Further, numerous studies explain the importance of high employees’
involvement and how it could enhance their retention (Arthur 1994). In summary, the
literature defines retention as continuing relation between employees and their organization.
Michael O. Samuel* and Crispen Chipunza (2009)In their study found out that few
motivational variables were found to have significantly influenced employee retention in both
the public and private sector organisations: training and development, challenging/interesting
work, freedom for innovative thinking, and job security.
By having support, employees are less likely to leave an organization and be more
engaged by having good relationship and open communication with the supervisor
(Greenhaus, 1987).
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An employee loves to work at a place, where he is given a proper environment to work.
Many companies are providing flexible schedules and work arrangements and are
experimenting with other ways to help individuals manage their work and personal life issues
(Perry-smith and Blum 2000: Solomon 1999)
Dr. Mita Mehta (2014) Through her research shows various trends over the years and
practices used across industries for improving employee retention and commitment. For any
organizations to survive in today’s ever increasing competition where employee poaching is
on the rise, it is very important to retain their best employees and keep them committed
towards the organization.
Objectives
1. To study employee retention policies of Micro Supreme Auto Industries .
2. To find out critical reasons of why people leave the company.
3. To study the satisfaction of employees towards company.
4. To study the satisfaction of employees towards their job.
Scope of the Study
A Study on employee retention describes the commitment of the Micro Supreme Auto
Industries to attracting and retaining the employees who are talented, innovative and dedicated
to excellence with respect to the response from the executives.
Data Collection Technique:-
 Primary data
 Secondary data.
1] Primary data :-
Such data are generated when particulars problem in hand is investigated by researcher
employing a mail questionnaire, telephonic surveys, and personal interview.
Primary data included in research are:
 Questionnaires
 Personal information
2] Secondary data:-
 Secondary data included in research are:
 Company data (which was confidential )
 Company website
Sampling Technique
A Convenient Sampling Technique is used in collecting the data in the research.
Sample Size
110 questionnaires were distributed out of which 90 responses received from
respondents .
Universe
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The universe was Micro Supreme Auto Industries Pvt Ltd
Data Interpretation and Analysis
Demographic Details:
Demographic Character Options Number Percentage
Gender A)Male 74 16 82 18
B) Female
Age A) 20- 25 20 17 15 38 22 19 17 42
B) 26 – 30
C) 31-35
D)35+
Qualifications A)10th 37 12 11 22 8 41 13 12 24 10
B)I.T.I
C) Diploma
D) Graduation
E) Post Graduation
Experience A)0-2 yrs 23 14 13 40 26 15 14 45
B) 3-5 yrs
C) 5 – 10 yrs
D) 10 + yrs
1) Gender :
Using T Test :
Group Statistics
Gender N Mean Std. Std. Error
Deviation Mean
Work Nature 1 71 3.62 .868 .103
2 17 3.00 1.225 .297
Job Security 1 71 2.97 1.362 .162
2 17 3.65 .996 .242
Job Status 1 71 3.14 1.060 .126
2 17 3.00 1.225 .297
Facilities at organization 1 71 3.15 1.023 .121
2 17 3.00 1.061 .257
Working place of 1 71 3.87 .861 .102
organization 2 17 3.29 1.047 .254
Appreciation of good 1 71 3.48 1.054 .125
work 2 17 2.94 1.197 .290
Feeling as an employee 1 71 3.18 1.163 .138
for organization 2 17 3.12 .993 .241
INCON - XI 2016 242

Gender N Mean Std. Std. Error
Deviation Mean
Company's Policy & 1 71 3.04 1.200 .142
Procedure 2 17 2.88 1.317 .319
Relationship with HOD 1 71 3.48 .984 .117
2 17 3.41 1.004 .243
Relationship with 1 71 3.93 .915 .109
Colleagues 2 17 3.65 .786 .191
Responsibility & 1 71 3.39 1.021 .121
Autonomy 2 17 3.12 1.317 .319
Respect at workplace 1 71 3.49 .998 .118
2 17 3.94 .899 .218
Data Interpretation: After doing inferential analysis of data by using descriptive and T
table there is no significant difference as per gender.
2) Age:
Using ANOVA Test :
ANOVA
Sum of df Mean F Sig.
Squares Square
Work Nature Between 4.703 3 1.568 1.704 .172
Groups
Within 77.297 84 .920
Groups
Total 82.000 87
Job Security Between 14.436 3 4.812 2.937 .038
Groups
Within 137.643 84 1.639
Groups
Total 152.080 87
Job Status Between 2.017 3 .672 .560 .643
Groups
Within 100.847 84 1.201
Groups
Total 102.864 87
Facilities at organization Between 6.482 3 2.161 2.132 .102
Groups
Within 85.143 84 1.014
Groups
Total 91.625 87
INCON - XI 2016 243

Squares Square
Working place of Between 2.709 3 .903 1.064 .369
organization Groups
Within 71.280 84 .849
Groups
Total 73.989 87
Appreciation of good work Between 1.370 3 .457 .372 .774
Groups
Within 103.255 84 1.229
Groups
Total 104.625 87
Feeling as an employee for Between 4.732 3 1.577 1.253 .296
organization Groups
Within 105.711 84 1.258
Groups
Total 110.443 87
Company's Policy & Between 5.538 3 1.846 1.256 .295
Procedure Groups
Within 123.450 84 1.470
Groups
Total 128.989 87
Relationship with HOD Between 8.126 3 2.709 3.003 .035
Groups
Within 75.772 84 .902
Groups
Total 83.898 87
Relationship with Colleagues Between 2.122 3 .707 .880 .455
Groups
Within 67.503 84 .804
Groups
Total 69.625 87
Responsibility & Autonomy Between 8.640 3 2.880 2.598 .058
Groups
Within 93.132 84 1.109
Groups
Total 101.773 87
Respect at workplace Between 7.519 3 2.506 2.702 .051
Groups
Within 77.925 84 .928
Groups
INCON - XI 2016 244

Squares Square
Total 85.443 87
Data Interpretation:
After doing inferential analysis it is found that for different age groups satisfaction
towards job security and relationship with superior changes.
3) Qualification:
ANOVA
Squares Square
Groups
Within 73.367 83 .884
Groups
Total 82.000 87
Groups
Within 139.150 83 1.677
Groups
Total 152.080 87
Job Status Between 8.296 4 2.074 1.820 .133
Groups
Within 94.568 83 1.139
Groups
Total 102.864 87
Groups
Within 85.624 83 1.032
Groups
Total 91.625 87
Working place of Between 1.174 4 .294 .335 .854
organization Groups
Within 72.815 83 .877
Groups
Total 73.989 87
Appreciation of good work Between 14.769 4 3.692 3.410 .012
Groups
Within 89.856 83 1.083
Groups
INCON - XI 2016 245

Squares Square
Total 104.625 87
organization Groups
Within 97.314 83 1.172
Groups
Total 110.443 87
Company's Policy & Between 5.235 4 1.309 .878 .481
Procedure Groups
Within 123.753 83 1.491
Groups
Total 128.989 87
Groups
Within 78.214 83 .942
Groups
Total 83.898 87
Relationship with Colleagues Between 10.480 4 2.620 3.677 .008
Groups
Within 59.145 83 .713
Groups
Total 69.625 87
Groups
Within 78.518 83 .946
Groups
Total 101.773 87
Groups
Within 80.726 83 .973
Groups
Total 85.443 87
Data Interpretation:
 After doing inferential analysis of data by using descriptive and ANOVA table it
indicates that for different qualification groups,
Satisfaction towards nature of work
Appreciation for good work from seniors
Feeling as an employee for the organization
Relationship with colleagues
INCON - XI 2016 246

Responsibility and autonomy of work changes.
4) Experience :
ANOVA
Squares Square
Groups
Within 73.367 83 .884
Groups
Total 82.000 87
Groups
Within 139.150 83 1.677
Groups
Total 152.080 87
Job Status Between 8.296 4 2.074 1.820 .133
Groups
Within 94.568 83 1.139
Groups
Total 102.864 87
Groups
Within 85.624 83 1.032
Groups
Total 91.625 87
Working place of Between 1.174 4 .294 .335 .854
organization Groups
Within 72.815 83 .877
Groups
Total 73.989 87
Appreciation of good work Between 14.769 4 3.692 3.410 .012
Groups
Within 89.856 83 1.083
Groups
Total 104.625 87
organization Groups
Within 97.314 83 1.172
Groups
Total 110.443 87
INCON - XI 2016 247

Squares Square
Company's Policy & Between 5.235 4 1.309 .878 .481
Procedure Groups
Within 123.753 83 1.491
Groups
Total 128.989 87
Groups
Within 78.214 83 .942
Groups
Total 83.898 87
Relationship with Colleagues Between 10.480 4 2.620 3.677 .008
Groups
Within 59.145 83 .713
Groups
Total 69.625 87
Groups
Within 78.518 83 .946
Groups
Total 101.773 87
Groups
Within 80.726 83 .973
Groups
Total 85.443 87
Data Interpretation: After doing inferential analysis of data by using descriptive and
ANOVA test there is no significant difference as per experience.
Findings
1. After doing inferential analysis it was found that employees from age group of 35 above
feel more secure about job whereas employees from 25-30 age groups are most insecure
about job, also it indicates that employees from age group of 20 - 25 are having more
satisfaction about their relationship with superior whereas employees from 25-30 age
groups are most dissatisfied with the relationship with superiors.
2. After doing inferential analysis it was found that third qualification group (Diploma
holders) having more satisfaction about nature of work whereas employees who are post
graduates are most dissatisfied with the nature of work.
3. After doing inferential analysis it was found that employees from first qualification
group (SSC passed) are highly dissatisfied with appreciation from superior whereas
graduated employees most satisfied with appreciation from superior.
INCON - XI 2016 248

4. After doing inferential analysis it was found that employees from first qualification
group (SSC passed) are having least good feeling as an employee about organization
whereas diploma employees are most satisfying feeling as an employee about
organization.
5. After doing inferential analysis it was found that employees from second qualification
group (ITI) are having least good relation with colleagues whereas diploma employees
are most satisfied with relationship with colleagues.
6. After doing inferential analysis it was found that employees from second qualification
group (ITI) are most dissatisfied with responsibility and autonomy of work whereas
diploma employees are most satisfied with responsibility and autonomy of work.
Conclusion & Suggestion:
1. By providing more autonomy, responsibility, good work culture employees feel more
satisfied which can improve good relation with colleagues and can help to increase
organizational commitment.
2. As post graduates expect more autonomy and core job if that will be provided to
employees they would be more satisfied. Implication of this would be satisfaction of
nature of job, more commitment towards job and organization.
3. Middle management plays vital role to boost up morale of employees and to increase self
efficacy. If by any means employees get appreciation it will affect positively to retain
employees.
4. If more security would have been provided to these age group employees then
employees will be more satisfied which will help to improve relation with superiors and
which ultimately will help to retain employees.
Bibliography:
[1] Chandranshu Sinha (2012) Factors Affecting Employee Retention: A Comparative
Analysis of two Organizations from Heavy Engineering Industry European Journal of
Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839
(Online) Vol 4, No.3, 2012
[2] Logan, J. K. (2000). Retention tangibles and intangibles: More meaning in work is
essential, but good chair massages won’t hurt. Training & Development, 54 (4), 48-50.
[3] Stauss, B., Chojnacki, K., Decker, A., Hoffman, F. (2001), "Retention effects of a
customer club", International Journal of Service Industry Management, Vol. 12 No.1,
pp.7-19.
[4] Zineldin, M. (2000), TRM Total Relationship Management, Student litterateur, Lund.
[5] Arthur, J. B. 1994. Effects of human resource systems on manufacturing performance
and turnover. The Academy of Manufacturing Performance, 37(3): 670-687.
[6] Michael O. Samuel* and Crispen Chipunza (2009) Employee retention and turnover:
Using motivational variables as a panacea African Journal of Business Management
Vol.3 (8), pp. 410-415, September, 2009
[7] Greenhaus, J.H. & Callanan, G.A. (1994). Career Management. The Dryden Press, Fort
Worth, Texas. Eisenberger, R., Fasolo, P., & Davis- LaMastro, V. (1990). Perceived
organizational support and employee diligence, commitment, and innovation, Journal of
applied psychology, 75, 51-59
INCON - XI 2016 249

[8] Perry-Smith, J and Blum, T.C (2000), Work family Human Resource bundles and
Perceived organization performance, Academy of Management Journal, v 43, 1107-
1112.
[9] Dr. Mita Mehta Review Paper – Study on Employee Retention and Commitment
International Journal of Advance Research in Computer Science and Management
Studies Volume 2, Issue 2, February 2014.

INCON - XI 2016 250

Effect of Organizational and Occupational Commitment on Satisfaction and

Performance of Medical Representatives
Mr. Swapnil Undale Dr. Milind Pande
Asst. Professor Project Director
MIT School of Management, ME, Ph.D. (Engineering), MBA, Ph.D.
Pune, India - 411038 (Management)
Email: undaleswapnil@gmail.com Post Doctorate (Telecom Technology
Transfer)
MIT Group of Institutions, Pune
Pune, India - 411038
Email: milind.pande@mitpune.edu.in
ABSTRACT:
Pharmaceutical marketing is highly relied on personal selling. Sales
representatives of Pharma companies are known as ‘Pharmaceutical Sales
Representatives (PSR)’ or ‘Medical Representatives (MR)’. The nature of pharma
marketing is highly challenging and dynamic. Therefore, knowledgeable, skillful and
committed sales force are asset for pharma companies. Companies strive to develop and
retain them. This research attempts to access effect of effect of organizational and
occupational commitment on satisfaction and performance of medical representatives.
We found that occupational commitment has significant positive effect on both job
performance and job satisfaction. However, organizational commitment did not show
any effect on job performance and job satisfaction. Papers ends with discussion on
results, limitations, and scope for future research.
Keywords : Job Performance, Job Satisfaction, Medical Representatives, Occupational
Commitment, Organizational Commitment, Pharmaceutical Marketing, Pharmaceutical
Representatives, Pharmaceutical Selling
Introduction
Pharmaceutical marketing is highly relied on personal selling. Pharma companies
employee sales representatives to promote their drugs to physicians. These representatives are
known as ‘Pharmaceutical Sales Representatives (PSR)’ or ‘Medical Representatives (MR)’.
MRs play a vital role in promoting pharma products. Their customers include primarily
physicians, Chemists and Stockiest. Physicians are qualified and registered medical
practitioners who treat the patients and prescribe drugs to them. Chemists are retailers of drugs
whereas stockiest are wholesalers of drugs. The nature of work is highly challenging, with full
of uncertainty and demands knowledge, communication, creativity, initiative, and flexibility.
The representative who possess these skills become successful. There is ample research work
available on Job Satisfaction, Job Performance, and Organizational commitment. Most of
these studies were conducted outside India and very few significant studies included medical
representatives. Therefore, purpose of this study is to access effect of organizational and
professional commitment on satisfaction and performance of medical representatives in India.
INCON - XI 2016 251

Literature Review
Organizational commitment is ‘the degree to which an employee identifies with a
particular organization and its goals and wishes to maintain membership in the organization’
(Robbins & Judge 2013). ‘Occupational commitment can be defined as identification and
involvement in a particular occupation’ (May et al. 2002). Job satisfaction is a positive feeling
about one’s job resulting from an evaluation of its characteristics. Job performance is the
combination of effectiveness and efficiency at doing one’s core job tasks. (Robbins & Judge
2013)
Mckay & Tate, (1999) found that higher levels of role conflict and work overload result
in higher levels of family conflict. Job tension is a mediating construct linking role stressors
and work-family conflict with work affective outcomes; job tension has a direct impact on
organizational commitment and intent to turnover; and while conflicting work situations lead
to job tension, ambiguous working conditions were conducive to job dissatisfaction.
Moideenkutty, Blau, Kumar, & Nalakath, (2001) observed that perceived organizational
support has significant moderating role in the relationship between perceived situational
variables and affective organizational commitment.
Moideenkutty, Blau, Kumar, & Nalakath, (2005) found that managerial assessment of
employee performance were affected by both objective productivity and organizational
citizenship behavior in Indian context.
Moideenkutty, Blau, Kumar, & Nalakath, (2006) postulated that procedural justice,
distributive justice, perceived organizational support, and communication satisfaction with
manager would have a stronger positive relationship to organizational citizenship behavior
than to in-role behavior. They found that communication satisfaction with manager had a
stronger relationship to organizational citizenship behavior.
Engle & Dimitriadi, (2007) compared the levels of role ambiguity (RA), role
conflict(RC), work-life role strain (RS), job satisfaction (JS), job performance (JP), and life
satisfaction (LS) on medical representatives in Russia and the United States. The study
observed significant differences between the two groups in four of the six constructs including
RA, RC, JS, and LS. The study concluded that the U.S. and Russia had very different "best fit"
models.
Liu, (2007) examined the level of the organizational commitment construct and present
an innovative perspective towards organizational commitment in initial phase of employment.
The study revealed that Training satisfaction, perceived reward equity and Manager
Commitment were significantly contributed to organizational commitment. Manger
commitment amongst all three found to have major contribution. The author argued that
developing strong relationship at front line manager level was important as organizational
commitment partly due to commitment to the front line manager.
Purani & Sahadev, (2008) investigated moderating role of industrial experience in the
relationship between different facets of a sales person's satisfaction with the job and his/her
intention to quit the job. They noted that industry experience moderates the job satisfaction,
disinclination to quit relationship for most of the job satisfaction dimensions. Researcher
observed that Industry experience has a moderating effect when the effect of a salesperson's
satisfaction with the organizational HR policies, supervisor satisfaction, compensation policies
and career development and disinclination to quit, are considered.
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Ali & Baloch, (2009) investigated the influence of role ambiguity, role conflict and
work-family conflict on organizational commitment and turnover intention of medical
representatives. They observed a significant negative association between Role Ambiguity and
Commitment, Role Conflict and Commitment, Work-Family Conflict and Commitment. They
found a significant positive correlation between Role Ambiguity and Turnover Intention, Role
Conflict and Turnover Intention and Work-Family Conflict and Turnover Intention. Authors
argued that work-family conflict, role ambiguity and role conflict highly contributes to
turnover intention.
Ahmad, Akhtar, Ibrahim, & Murtaza, (2010) listed factors associated with job
satisfaction and dissatisfaction. The objective of this extensive study was to analyze the
motivational problems of medical representatives (MRs) and to examine the effects of
environment, job characteristics and personality variables on job satisfaction. The study
identified the factors associated with feeling of job dissatisfaction for Medical
Representatives, like: inequitable policy and administration, poor supervision, job insecurity,
tedious work itself, unfavorable interpersonal relationship, strict environment, lengthy
communication channels, low profile of company, pressure targets, infiltration of stocks, and
unethical demands of customers. The study also identified the factors associated with feeling
of job satisfaction for Medical Representatives, like: handsome salary package, sense of
achievement, favorable recognition, responsibility, growth opportunity, stimulating work
itself, cordial interpersonal relations, job security, good working conditions, and other fringe
benefits.
Hawass, (2012) investigated whether affective and continuance dimensions of
organizational commitment are deliberately influenced by a defined set of personality traits.
They found that sales person’s personality traits influence organizational commitment, while
cultural differences may have moderating effect on the way personality traits influence
organizational commitment.
Ali & Jan, (2012) studied the relationship between organizational justice, organizational
commitment and turnover intention. They observed that both distributive justice perception
and procedural justice perception had a significant relationship with organizational
commitment and turnover intentions amongst Medical Representatives of Pharmaceuticals
Companies operating in Pakistan.
Ali & Kakakhel, (2013) tested the relationship between occupational stress and
organizational commitment. They found that physiological and psychological stress had
inversely correlated with organizational commitment.
Sohn, Seung, Seo, & Kim, (2013) argued that the nature of B2B marketing in healthcare
segment is different from that of other B2B marketing areas. The study examined the
structural association among commitment, satisfaction, and dependence.
From literature review, it is evident that most of the studies conducted outside India
and focused on non-pharmaceutical representatives. This study is an attempt to bridge this gap.
This research specifically studied medical representatives’ organizational and occupational
commitment and its effect on their job satisfaction and job performance.
Methodology
Data were collected by on-field survey. During the survey, representatives were
interviewed and a structured questionnaire were filled. Samples were selected from Pune city
INCON - XI 2016 253

of India. Pune is one of the emerging metro city of India. Metro cities are characterized by
high density of population and migrants from majority of other states (of India). Most of the
national pharma companies have their representatives working in metro cities. These features
makes metro cities representative samples of India. Therefore, samples were collected form
Pune city. Three hundred and eight out of five hundred questionnaires distributed found to be
filled completely and usable. This yielded response rate of 61.6%.
Table No. 1 : Distribution of the survey respondents by gender, work experience,
education level, marital status, and age
Demographics Frequency Percent
Gender
Male 293 95.1
Female 15 4.9
Work Experience
<= 6 months 21 6.8
6 months - 1 year 30 9.7
1 - 2 years 50 16.2
2 - 5 years 117 38
5 - 10 years 63 20.5
> 10 years 27 8.8
Education
Pharmacy 170 55.2
Science 113 36.7
Arts 11 3.6
Commerce 14 4.5
Marital Status
Married 165 53.6
Unmarried 143 46.4
Age Group
21 yrs - 25 yrs 98 31.8
26 yrs - 30 yrs 147 47.7
31 yrs - 35 yrs 43 14
36 yrs - 40 yrs 9 2.9
> 40 yrs 11 3.6
Total 308 100
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Table No. 1 shows some basic demographic characteristics of survey respondents.
Pharmaceutical sales profession is dominated by males (95.1%). Most of the respondents have
more than one year of work experience. Majority of the representatives held pharmacy or
science degree. Half of the respondents were married. Many of them were in the age group of
21 to 30 years.
Measures
Organizational commitment scale (four items) was adopted from Mowday, Steers, &
Porter, (1982). Three items Occupational Commitment scale was adopted form McCloskey &
McCain, (1987). Self-Perceived performance and Job satisfaction scales were adopted from
AL-Dmour & Awamleh (2002) and Al-Rabayah, Al-Dmour, & El-Samen (2011). One item
‘company’s appreciation for achievement’ form original Self-Perceived performance scale was
deleted to achieve desired threshold Cronbach’s alpha value of 0.7 (Nunnaly 1978). Original
scale of five items reduced to four-item scale after deletion of one original item.
All above scales uses five point Likert scale. Five point Likert scale has a mid-point,
which usually labelled as ‘Neutral or Neither agree nor disagree’. If respondents have to
answer long survey, they resort to simplification and tend to choose the mid-point. Instrument
used for this study comprises of four scales. Considering length of instrument there was high
probability that more respondents would choose the mid-point. Matell & Jacoby (1972)
recommended minimizing usage of mid-point by either removing midpoint or increasing scale
points to seven or more. Increasing scale points increases time to complete the survey.
Therefore, four point forced Likert scale was used.
Reliability and Validity
Table No. 2 shows values of mean and standard deviation of each item on the scales. It
also shows Cornbach’s alpha value for all the scales. All the values are above expected 0.7
(Nunnaly 1978). Therefore, reliability of all scales are established.
Table No. 2 Definitions of variables, descriptive statistics and results of reliability tests
Scale Mean Std. Cornbach’s
(1= Strongly agree to 4=Strongly disagree) Deviation alpha
Organisational Commitment 0.826
I am willing to work harder than I have to in order to 2.00 .729
help this company succeed
I am proud to tell others that I work for this company 2.22 .805
I feel much loyalty to this company 2.58 .777
I would turn down a job at comparable pay and 2.72 .786
prospects in another company to stay with this
company
Occupational Commitment 0.789
I plan to continue to be active in the occupation I am 1.88 .621
in now
I am proud to work in this occupation 2.30 .755
Pursuing a career in this occupation is important to 2.43 .734
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Scale Mean Std. Cornbach’s
(1= Strongly agree to 4=Strongly disagree) Deviation alpha
me
Job Satisfaction 0.815
I feel that my Manager and co-MRs care about me as 1.87 .728
I represent an important person to them
My work offers me the chance to get financial 1.82 .652
rewards and recognitions
My immediate manager discusses with me, about my 1.95 .747
career development
Objectively speaking, I think that my salary is 2.38 .750
suitable for me
I am able to save sufficiently from my earnings 2.51 .789
I think that my company takes my career needs into 2.16 .719
consideration
I think I have a fair chance to be promoted in my 1.88 .625
company
Self-perceived Performance 0.763
I consider my selling performance better than the 1.93 .647
average performance of my co-MRs
I always achieve my sales target 1.96 .632
My average sales is better than competitor company's 2.06 .625
sale in my HQ
I am satisfied with my selling performance 1.93 .607
Factor analysis for each scale was conducted. It showed that there was only single factor
underlying for each of the scales. This confirms uni-dimensionality of the scales. Face validity
and content validity of scale were established by showing it to the industry and academic
experts. Modified hetero-trait mono-trait correlation matrix was used to access convergent and
discriminant validity (Trochim n.d.). The matrix showed that for all the scales inter-item
correlations in mono-trait matrix were greater than that of inter-item correlations in hetero-trait
matrix. Therefore, convergent and discriminant validity for all scales were established.
Results and Discussion
Based on the literature review we hypothesised
1. Organisational commitment has positive effect on self-perceived job performance and
job satisfaction
2. Occupational commitment has positive effect on self-perceived job performance and job
satisfaction
3. Demographic variables have effect on self-perceived job performance and job
satisfaction.
To test these hypotheses regression analysis was conducted. Table No. 3 shows result of
regression analysis. We found that occupational commitment has significant positive effect on
INCON - XI 2016 256

both job performance and job satisfaction. However, we did not found any support for our
hypothesis that organisational commitment has positive effect on performance and
satisfaction. We further observed that none of the demographic variable has effect on self-
perceived job performance. Nevertheless, work experience and age has significant positive
effect on job satisfaction.
Table No. 3 Regression results for Self-Perceived Performance and Job Satisfaction
Performance Satisfaction
Independent Variable B (s.e.) B (s.e.)
Organisational Commitment 0.029(0.029) -0.051(0.036)
Occupational Commitment 0.521(0.035)* 0.594(0.044)*
Gender -0.117(0.08) -0.031(0.101)
Work Experience -0.03(0.021) 0.065(0.027)**
Education 0(0.023) 0.054(0.029)
Marital Status -0.049(0.043) -0.001(0.054)
Age Group 0.009(0.027) -0.089(0.033)**
(Constant) 1.083(0.184) 0.816(0.231)
R2 0.44 0.401
Note: B = unstandardized regression coefficient; s.e. = standard error; *p < 0.001; **p <
0.05.
The study had several limitations. Samples were selected from single metro city.
Though metro cities have population from majority of states (migrants from other states), it
may not be true representative of national population. This is because majority of the migrants
are from nearby states. Further, metro cities offer representation for urban areas. Moreover,
metro cities are usually treated as pool territories (more than one representatives are assigned
same geographical area) by pharma companies. Sampling frame was not available. Hence,
non-probability sampling technique was used. Non-probability sampling does not guaranty
representative samples. The study has not included sales representatives from non-
pharmaceutical industry. Therefore, findings of this study has limited generalizability. Further
research including other urban and rural territories and representatives from other industry in
India as well as from other countries is recommended to increase the generalizability.
Conclusions:
This research reported effect of organizational and occupational commitment on
performance and satisfaction of medical representatives. Occupational commitment has shown
positive effect on job satisfaction of medical representatives. More the occupational
commitment more the job satisfaction. A comparison of coefficient values indicated that
occupational commitment has strongest effect followed by age (negative effect) and work
experience. It suggested that more the work experience more the job satisfaction and lesser the
age more the job satisfaction. Our findings about effect of occupational commitment on
satisfaction supports the findings of May et al.(2002). According Alvesson, (2000) nature of
work (challenging and uncertainty) enhances occupational commitment. We noted that
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occupational commitment also has positive effect on self-perceived job performance.
However, organizational commitment did not show any effect on performance and
satisfaction. This finding indicate that representatives are not committed to their organization.
Therefore it is not surprising that the attrition rate in pharma industry is in double digit
(Pharma Express 2012). Organizational commitment also indicates loyalty of employees.
Skillful, well-qualified and knowledgeable medical representatives are asset to pharma
companies. Companies are facing problem in retaining them. These problems can be
overcome by working on improving organizational commitment. However, it is imperative to
identify the reasons for organizational non-commitment so that organizational commitment
can be enhanced. A separate study is required to investigate the causes.
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 AL-Dmour, H. & Awamleh, R.A., 2002. Effect of Transactional and Transformational
Leadership Styles of Sales Managers on Job Satisfaction and Self- Perceived
Performance: A Study of Jordanian Manufacturing Public Shareholding Companies.
Dirasat: Administrative Sciences Series, 29(1), pp.247–261.
 Ali, N. & Baloch, Q.B., 2009. Predictors of Organizational Commitment and Turnover
Intention of Medical Representatives ( An Empirical Evidence of Pakistani Companies ).
Journal of Managerial Sciences, 3(2), pp.262–273.
 Ali, N. & Jan, S., 2012. Relationship between Organizational Justice and Organizational
Commitment and Turnover Intentions amongst Medical Representatives of
Pharmaceuticals Companies of Pakistan. Journal of Managerial Sciences, 6(2), pp.201–
212. Available at:
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ue&db=bth&AN=82459253&site=eds-live&scope=site&scope=cite.
 Ali, N. & Kakakhel, S., 2013. Relationship between Occupational Stress and
Organizational Commitment (Empirical Evidence from Pharmaceuticals Industry).
Journal of Managerial Sciences, 7(2), pp.291–298. Available at:
http://www.qurtuba.edu.pk/jms/default_files/JMS/7_2/JMS_July_December2013_291-
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 Al-Rabayah, A.A., Al-Dmour, H.H. & El-Samen, A.A.A., 2011. The Influence of
Medical Sales Representatives ’ Work Engagement on Job Satisfaction and Self-
Perceived Performance at The Jordanian Pharmaceutical Industry A Structural Equation
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 Alvesson, M., 2000. Social identity and the problem of loyalty in knowledge-intensive
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 Liu, C.-M., 2007. The early employment influences of sales representatives on the
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Relationship of Perceived Situational Factors to Affective Organisational Commitment.
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Objective Productivity To Managerial Evaluations Of Performance In India.
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http://www.socialresearchmethods.net/kb/mtmmmat.php.

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The Changing Face of Industrial Relations in India

Mr. Abhijit Khurape
abhikhurape@gmail.com
ABSTRACT:
Industrial Relations (IR) is much beyond policy making, management decisions or
a thousand theories that can be proposed around the subject. Even, global organizations
have to be mindful of the economic conditions, laws, government policies, and external
factors pertaining to a particular geography, for instance, Labor Unions in India are
heavily under political influence, and oftentimes political parties try to cash on the
situations root to clashes between labor unions and the management.
The main objective of this research paper is, to know why and in what sense,
industrial relations are emphasizing on workplace relations. How globalization
influences Industrial Relations and Management in Indian industries and some current
and future issues - for employers but not only for them.
This research paper deals with the changing face and facts of Industrial Relations in
Indian industries. This paper is based on the secondary data .The source of the
information has been taken from the previous articles, journals, text books on industrial
relations.
Key words: Industrial Relations, Globalization, Labor Unions, Management, Collective
Bargaining.
1. Introduction:
Industrial relations in India influenced by a variety of circumstances such as political
philosophies, economic imperatives, and the role of the State in determining the direction of
economic and social development. The influence of unions and the business community, as
well as the legacies of colonial governments contributed the development of IR in India. IR
fulfilled the function to provide employees with a collective voice, and unions with the means
to establish standardized terms and conditions of employment not only within an enterprise but
also across an industry, and sometimes across an economy. This is achieved through the
freedom of association, collective bargaining and the right to strike.
Private employers and some government agencies are observing IR from a more
strategic perspective, i.e., how IR can contribute and promote to workplace cooperation,
flexibility, productivity, competency and competitiveness. It is increasingly recognized that
how people manage impacts on organizational productivity and on the quality of goods and
services, labor costs, the quality of the workforce and its motivation.
2. The Increasing Interest in Workplace Relations
2.1 Early Emphasis versus Current Trends
In its inception the labor market was dominated by the classical economics view, which
espoused free and unregulated labor markets. This laissez-faire capitalism led to social
injustices and inequities. Since, labors did not have the power to bargain with employers, in
any terms, in which even approached for equality in bargaining strength.
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Additionally, the dominant position of the employer in what was formerly termed the
"master and servant" relationship prevented labors from enjoying rights. IR therefore came to
espouse a degree of labor market regulation to correct the unequal bargaining power. It is
natural that, IR developed in the context of the theory that problems in labors relations
emanate largely from market imperfections, which operate against the interests of labor and
causes misbalancing in the power relationships between employers and employees.
The emphasis on collective IR was facilitated by government intervention in IR through
legal prescriptions (which emphasized the normative aspects of IR), as well as by the growth
of union power which depended on decisions to be implemented at the enterprise level being
made outside the enterprise in a way which, like laws, had a normative effect.
Collective IR operates in three ways. One way is through national or industry level
agreements between unions and employers' organizations. A second way is through
agreements between a single employer and a union. A third way is through legislative
enactments applicable to employers and employees generally, or to a particular sectors, or to
particular categories of employees. National agreements may sometimes stipulate general
principles, leaving the details to be worked out through negotiation at the enterprise level
which leverages the IR in organization and country.
2.2 Reasons for Emphasis on Workplace Relations
Several changes in recent years are responsible for more attention being paid to
employment relations within organizations. The first is the impact of globalization which has
significantly changed the ways in which enterprises are managed and work performed.
Enterprises have resorted to a range of measures to increase efficiency and
competitiveness, based not on low wages and natural resources, but on innovation, skills and
productivity as ways of improving quality and reducing costs.
Since, productivity and quality have become major considerations in competency and
competitiveness, the quality of the workforce and training have become critical factors.
Shorter product life has enhanced the need for multi-skilled easily trainable employees.
Employee skills have become important determinants not only of flexibility, productivity and
quality, but also of employability, investment and the ability to rapidly adapt to market
changes.
3. Globalization and the Changing Face of Industrial Relations and
Management
3.1 Globalization
The pressure on traditional IR is not all due to globalization, as we might see, but many
of the changes taking place can be traced to globalization. It is not always easy to disentangle
the causes and effects of globalization. However, it would probably be true to say that
globalization is represented by the opening up of markets due, in large measure, to foreign
direct investment consequent upon the lowering of investment barriers in practically all
countries; by the liberalization of trade, and by the deregulation of financial markets in
consequence of which governments increasingly have little control over the flow of capital
across borders as adopted open economy strategy in India.
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3.2 Employer Responses and Implications for Industrial Relations
The responses of employers are the following:
 Moving production overseas reduces cost and to facilitate sensitivity to local and
regional market requirements.
 Contracting and out-sourcing. It is an important rationale of out-sourcing on the one
hand, enables an enterprise to concentrate on its core competencies, and on the other
hand, it makes service work more productive.
 More part-time and temporary work (especially among women, the elderly and
 students)
 Introduction of new technology
 Pushing for a more deregulated and flexible labour market
 More emphasis on productivity and quality
 Greater employee involvement in the expert design and execution of work.
 Shifting the focus of collective bargaining from the nation/industry level to the
enterprise level. Employers are in the view of issues, those are relevant to the
employment relationship such as work re-organization, flexible working hours,
contractual arrangements, pay for performance and skills are increasingly workplace-
related, therefore be addressed at the enterprise level.
 Exceptionally, employers reduced terms of employment through 'concession bargaining'
when firms have been in financial difficulties.
 Downsizing the workforce.
One of important response is the introduction of flexibility in the employment
relationship to increase the capacity of enterprises to adapt rapidly to market changes. This has
involved Measures such as
 Flexible working hours (Flexi-timing)
 Part-time work/ work from home
 Different types of employment contracts to the standard ones familiar to collective IR.
 Flexibility in functions, so that employees who are multi-skilled are not confined to the
performance of only one task. They can cover up for absenteeism, and make some jobs
redundant.
 Flexible pay, which involves some component of pay being dependent on performance,
whether of the company, a group or the individual.
3.4 Management and Industrial Relations
The much closer relationship between management and IR needs to be recognized -
principally because both must focus on people and IR at the workplace level.
IR system and practices are shaped by the three main actors - Government,
Workers/Unions and employers/employers' organizations.
It appreciated infrequently by IR specialists that IR are shaped to a large extent by the
way enterprises are managed, and when fundamental changes occur in management they
create changes in IR as well. This is particularly so in the context of globalization; many of the
changes taking place in IR – indeed the increasing shift from collective IR to more enterprise
(and in some cases, individual) focused IR - are spurred by employers. It is significant that the
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collective standardized model of IR evolved during the era of the classical model of the
enterprise which itself sought standardization at the cost of creativity and innovation.
4. Influences on Indian Industrial Relations
Governments' determination of the economic direction of India country was a critical
factor in shaping the IR systems which emerged. A direct consequence of this was the
emergence of the government as the largest employer - particularly in India which had some
socialist orientation. The government as employer, like any other employer would wish to do,
influenced the type of IR institutions which emerged. The shape of IR was further refined by
the particular industrialization and economic strategies. Socialist and import substitution
strategies produced rather different models to ones which emerged in the business-friendly,
outward-looking, export-oriented countries.
5. Future Issues for Industrial Relations
In a globalized environment, money and people moving with ease across borders. The
relentless pursuit of competitive advantage at the cost of the disruption of social relationships
and stability, outdating knowledge, skills and technology, with learning being a life-long
pursuit, and increasing job insecurity. The only certain factor is change and its rapidity.
Poverty worldwide is showing its presence at all the levels of society and on the contrary it is
increasing rapidly. Many results of recent changes have benefitted a few, and in many
countries income gaps are widening, rather than narrowing. Eminent writers are suggesting
that the world may well be heading towards overproduction of goods, food shortages, and
environmental degradation.
IR is no doubt undergoing through changes, and improving its behavior. Its major
Contribution was that it facilitated distributive justice and thereby contributed to social
stability.
IR institutions continue to have the following relevance:
 Collective bargaining, even if at the enterprise level, it helps to reduce inequalities in
negotiating power
 Freedom of association provides the foundation for the recognition that is in the
fundamental rights of employee.
 Industrial peace needs to be ensured by addressing it at the enterprise level, and
providing safeguard mechanisms external to the enterprise such as conciliation, courts or
tribunals in the event of their failure.
 Processes such as tripartism are needed to ensure that the relevant parties have the
opportunity to influence labor policy and legislative outcomes.
 The boundaries of action in which parties may act need to be set.
 Social protection through minimum standards may often be required, whether they relate
to children or women, safety and health or superannuation.
5.1 Current and Future Issues:
In these circumstances, the issues which IR will be called upon to address, in particular
in India, need to be identified. Employers are now view IR as a strategic perspective; in other
words, not only from the traditional viewpoint of negotiating terms and conditions of
employment and performing a personnel and welfare function.
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IR is directly relevant to competitiveness, and how they are managed will impact on
enterprise performance, e.g. its productivity and quality of goods and services, labour costs,
quality of the workforce, motivation, prevention of disputes and not only their settlement, and
aligning employee aspirations with enterprise objectives.
5.1.1 Minimum Wages:
In countries which have a legal minimum wages three employer concerns are evident.
The first is that minimum wages levels sometimes tend to be fixed on extraneous
considerations (e.g. political), or on inadequate data needed to define the level of wages.
The second concern is that such instances have an adverse effect on competitiveness in the
global market and on employment creation where the minimum wages is fixed above a certain
level (much of the controversy relates to what that level is?). Therefore many employers prefer
to see the minimum wage, if there is to be one at all, as a 'safety net' measure to uplift those
living below the poverty line.
The third concern relates to increases in minimum wages not being matched by
productivity gains which would help to offset increased labour costs.
5.1.2 Flexible/Performance Pay:
Many employers, and even some government agencies, wish to review traditional
criteria to determine pay-levels such as the cost of living and seniority. Pay structures which
are flexible (i.e. based on profitability and productivity) so as to be able to absorb business
downturns and also reward performance, are receiving considerable attention. One of the
major problems in this regard is how employees and their organizations can be persuaded to
negotiate on pay revision. The objectives of pay revision is not be achieved unless revisions
are the result of consensual agreements and are a part of a larger human resource management
strategy and change in human resource management systems.
"We now pay workers not for output produced, nor even for labour input provided, but
simply for time spend on the job." Which can be termed as “employment killing”, where
employee stretch short-term job for long-term. It is also known as Time Killing Attitude.
5.1.3 Balancing Efficiency with Equity and Labor Market Flexibility
In this century, IR and the law in industrialization have paid considerable attention to the
means through which the equal bargaining position between employees and management takes
place. The imbalances in their respective positions are corrected primarily through the freedom
of association and collective bargaining. Thereafter, the legislative focus in some countries is
more on the relationship between management and labour and their organization rather than on
their relationships with the state. This is due to the fact that the State has adopted a less
interventionist role than in developing countries, based on the premise that regulation of the
labour market should, to a large extent, be left to the employers, workers and their
organizations.
5.1.4 Freedom of Association, Labour Rights and Changing Patterns of Work
Changing patterns of work (e.g. more homework, part-time work sub-contracting) have
created concerns for unions in particular. Job security, social security and minimum conditions
of work are some of them. Traditional IR systems based on the concept of a full-time
employee working within an enterprise is increasingly inapplicable to the many categories of
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people working outside the enterprise. In some countries in terms of numbers they are likely in
the future to exceed those working within an enterprise.
IR in the public sector - especially in the public service - where negotiation rights, for
instance, are less than in the private sector, is also likely to be an issue in the future.
5.1.5 Women
The increasing influx of women into workforces has raised issues relating to gender
discrimination, workplace harassment like issues as well as high working capacity of women
cam better opportunities for them in relation to training and higher-income jobs and welfare
facilities. This causes immense competition at work place.
To maintain work culture ethics Indian legislative body and government has enforced
legislative compliances like Prevention Of Sexual Harassment At The Workplace (POSH),
which provides safety to the women at Physical, Environmental, Organizational and mainly
Educational level
5.1.6 Migration
There is a large migration of labor from labor surplus countries to labor shortage in India
and vise-versa endorse issues like legal or illegal status (which may affect their rights), Trade
Union Rights and their access to the same level of pay and other conditions enjoyed by
nationalities. Social security for migrant workers is one of the major problems as many
receiving countries do not extend social security benefits to them.
6. Conclusion
There is no single logic of industrialization leading to one particular type of Industrial
Relations system which is driven by work place relations incorporate with gender, culture
(Migrants) and thinking differences." Consequently, Industrial Relations in India should be
understood in the historical context. Industrial Relations played an important role in the
economic success in India. If Industrial Relations have failed to promote economic
development in India, it is arguable that the fundamental problem lay in the economic
direction that sub-region followed which did not adapt to changing circumstances, and the
Industrial Relations in a sense mirrored that direction which failed to deliver growth. Labor
Unions in India have been in the forefront of the demands for nationalization of industries and
enterprises. In the last it is better to comment that, Indian culture, ethics and values system
helps to manage relations and growth based upon healthy-workplace environment by
enforcing POSH like legislative compliances.
REFERENCES:
[1] C. Kerr, J.T. Dunlop, F. Harbison and C.A. Myers Industrialism And Industrial
Man(Harvard University press, Massachusetts, USA, 1960).
[2] For the challenges IR faces in the globalized environment and the implications of
changes for the Asian region - see Russell D. Lansbury "Perspectives of Industrial
Relations in the Twenty First Century", IIRA, Third Asian Regional Congress, Taipei,
1996.
[3] John H. Dunning The Globalization of Business (Routledge, London, 1993) p.5.
[4] Kazuo Koika "Globalization, Competitiveness and Workers' Skills" IIRA Third Asian
Regional Congress, Taipei, 1996.
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[5] S.A. Siddique "Industrial Relations In A Third World Setting: A Possible Model", op.cit.
393.
[6] Sarosh Kuruvilla Industrialization Strategy And Industrial Relations Policy In South East
Asia (Working Paper, Institute of Collective Bargaining, Cornell University, U.S.A.,
1994),
[7] Sarosh Kuruvilla and C.S. Venkata Ratnam Economic Development And Industrial
Relations In South And South-East Asia: Past Trends And Future Directions (Paper
presented at the IIRA World Congress, Washington, May 1995).
[8] S. Hill and K. Thurley "Sociology and Industrial Relations" in 1974 British Journal of
Industrial Relations 147-170.
[9] S.R. de Silva Harmonizing Industrial Relations and Human Resource Management,
op.cit.
[10] Sriyan de Silva “The Changing Focus of IR and HRM.” International labour
organization, act/emp, 1997

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High Erosion Rate; A Big Challenge for HR Department

Prof. Pravin Thorat
E-mail : Thorat82@gmail.com
ABSTRACT:
As we all are aware today’s biggest problem in front of the HR personals is the
high erosion rates in every Industry. Whether it is a booming BPO’s, IT industry,
Service Industry or even the pharmaceutical industry, each & every industry is facing
the same problem. This paper focuses on the current scenario of the Industry with
reference to the erosion rates. Also we try to discuss on the different reasons for the
increasing erosion rates in the different sectors. The paper will also try to find out &
suggest the different ways to reduce the erosion rates in the industry.
Objectives of the Study:
 To Study the current scenario of the different sectors with special reference to the
increasing erosion rates in the industry.
 To understand the reasons why the erosion rate is growing day by day.
 To Study the costs companies has to bear due to the increasing rate of erosion .
 To suggest different solutions to reduce the high erosion rate in Industry.
Introduction:
In the best of worlds, employees would love their jobs, like their coworkers, work hard
for their employers, get paid well for their work, have ample chances for advancement, and
flexible schedules so they could attend to personal or family needs when necessary. And never
leave.
But then there's the real world. And in the real world, employees, do leave, either
because they want more money, hate the working conditions, hate their coworkers, want a
change, or because their spouse gets a dream job in another state. So, what does that entire
turnover cost? And what employees are likely to have the highest turnover? Who is likely to
stay the longest?
Alarm bells are ringing loudly in corporate corridors as erosion rates in IT organizations
is average 22 percent as per a study conducted by the Indian Institute of Technology, Bombay
(IIT-B) with a sample of 1,028 IT companies in the country. Another survey done by People—
a Gartner group company specializing in the management of human capital in IT
organizations—has observed that the average tenure of an IT professional is less than three
years.
What is Erosion ?
Erosion can be defined as "A reduction in the number of employees through retirement,
resignation or death."
We can Define Erosion rate as "the rate of shrinkage in size or number"
Major sectors facing the problem of high erosion rate:
 Software Industry
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 BPO Sector
 Pharmaceutical Industry
 Hospitality industry.
 Software Industry:
Almost every sector in India is facing high rates of erosion these days. A recent study
revealed that employees leave either because of compensation reasons or due to better growth
opportunities. According to NASSCOM, Indian IT-ITES industry recorded US$ 39.6 billion in
revenues in 2008-07. The revenue of US$ 49-50 billion has been projected in 2009-08 at a
growth rate of 24-27 per cent. The IT industry's contribution to GDP was 4.8 per cent in 2005-
06.
Though the IT/ITES sector is booming, it is constantly facing high erosion rates of 25%
- 30%. Even the big brands are also facing the same problem. Below are the details of erosion
rates of various players in IT sector. According to the survey conducted by BES and Data
Quest, Sierra Atlantic recorded highest erosion rate (29%) followed by Kanbay with 25% and
Accel Frontline with 20 per cent.
Rank Company Erosion rate (FY 06)
1 Sierra Atlantic 29%
2 Kanbay 25%
3 Accel Frontline 20%
4 Sasken 19%
5 Nucleus 18%
6 Geometric 18%
7 Flextronics 18%
8 HCL Infosys 16%
9 Induslogic 16%
10 NIIT Technologies 15%
11 Cybage 15%
12 Wipro 13%
13 Hexaware 13%
14 Computer Sciences Corp 12%
15 Infosys 10%
16 TCS 9%
17 Interra 9%
18 RMSI 8%
19 Cadence 8%
20 Aztecsoft 6%
*BES Survey 2008 Source: DQ-IDC
BPO Sector:
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Business Process Outsourcing, commonly known as BPO, is one of the most booming
sectors in the Indian industry. Since its inception, the Indian BPO industry has grown at a
constant annual rate of 40-50 per cent and within a couple of years, India managed to secure
the position of the most preferred and low cost destination for business process outsourcing.
Despite the recent concerns about the non-viability of BPO due to the increasing cost
(explained later in the article) and the emerging security issues, the Indian BPO industry is
expected to generate one million jobs by the year 2008. The sector has also increased its
revenue manifolds to $8.5 billion in 2008-07 and is poised for higher growths. Ironically, in
spite of the tremendous growth potential of the sector, erosion rate and the manpower crisis is
dampening the growth of the sector. The human resource professionals of the BPO industry
are facing various challenges like the erosion rates and its implications, skill shortages,
retaining the employees etc. The sources of recruitment used by the BPO companies are
advertisements, employee referrals, outsourcing and walk-ins. The Indian BPO industry,
which established itself as the low-cost destination for business process outsourcing in just a
couple of years, is losing its position as the low-cost destination because of the rising people
costs. According to the NASSCOM reports- The IT industries are struggling with the critical
issue of acquiring and sustaining manpower in the industry. The BPO industry – one of the
most rapidly growing sectors in the Indian industry- is grappling with the issues of skill
shortages, high erosion rates, and performance management along the confidentiality and
security concerns. All these issues are having a negative impact on the BPO industry.
According to NASSCOM data, the erosion rate for voice-based BPO’s is around 55-60
per cent and 15-20 per cent for the non-voice based processes. The erosion rates and the
retention have become the major threat and the biggest challenge for the human resource
professionals of the sector. In fact, the outsourcing industry is expected to face a shortage of
2,62,000 professionals by 2012. The human resource professionals of the BPO sector are
focusing their strategies on tackling the disruption caused due to the shortage of the skilled
manpower as well as the unplanned or the undesired exists.
 Pharmaceutical Industry:
After IT and BPO, it is now the pharma sector that is facing the issue of high erosion
rates. For most HR managers, employee retention is the biggest challenge. “Erosion is pretty
high in the industry these days. This year, we have witnessed almost 20 percent plus erosion
and definitely I consider it very critical to the company,” said Dr Kashmira Pagdiwalla, Vice
President-HR, Biotech Division, Intas Pharmaceuticals.
Whenever a well-trained and well-adapted employee leaves any organisation, it creates a
vacuum. The organisation loses key skills, knowledge and business relationships. And it is not
an easy task to find a sustainable substitute. “Situation is worse when it happens at a critical
(decision making) position, as there is a scarcity of such technical resources in the market,”
explains Abraham T M, Head-HR, Veeda CR, who feels erosion directly affects the company.
Pagdiwalla says that recruiting and training programmes for employees is an expensive affair.
The company has to invest a lot while recruiting an employee.
Erosion is a universal phenomenon and no industry is devoid of it, but the degree
fluctuates from industry to industry. “Major pharmaceutical companies in India are age-old
and established, having their own culture and work practices and therefore, employee turnover
will be a common phenomenon in such companies. According to Beena Handa, Vice-
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President-HRM of Claris Lifesciences, erosion is a serious issue in the pharmaceutical
industry because the industry is knowledge-based and hence employees are its “assets”.
 Hospitality Industry:
The erosion rate in the hospitality industry is set to double to nearly 50 per cent by
2010, up from the earlier 25 per cent, thanks to rapid expansion, reveals a study conducted by
Associated Chambers of Commerce & Industry of India (ASSOCHAM). The study also
predicts that due to further expansion in the hospitality sector in the Middle East and Europe,
there will be a huge demand for trained and skilled personnel in large numbers, in next three
years.
In a study entitled 'Erosion Rate: its possible impacts on the hospitality industry',
ASSOCHAM has estimated that the Commonwealth Games 2010 alone, will create job
opportunities for nearly 50,000 skilled professionals, as about 70 hotels are likely to be
commissioned in the next three years, assuming that each hotel will need about a 600-strong
regular workforce.
Speaking to Express Hospitality, Venugopal N Dhoot, president of ASSOCHAM says,
"This huge constraint will trigger erosion rate in the hotel industry, as it will create greener
pastures for those experienced employees, currently engaged in established business houses in
the hospitality sector."
He states further that almost every established hotelier is chalking out their expansion
strategies for overseas ventures in countries like Dubai, Saudi Arabia, Bahrain, Iran, Oman
and European Nations like UK, Germany, Italy, as well as Australia and New Zealand. "They
all prefer Indian managers because of their high educational qualifications, quality standards
followed through HM training in India, and the experience gained by working in Indian
conditions."
According to the study, more opportunities are also opening up in the hospitality
industry, as a worldwide diversification drive is intensifying, which will generate larger
employment opportunities for Indian hotel staff, in view of the cost factor, which in case of
India gives an edge as most of its workforce is accustomed to work for longer. This is another
factor contributing towards enhancement in erosion rate.
Dhoot feels that in view of heavy expansion taking place in India and other parts of the
world in the hospitality sector, it is estimated that an additional 300 million job opportunities
for professionals would come up by 2008 itself, which would be taken up by the existing
engaged lot. This will again result in spurring erosion rates.
As such the hotel industry is facing a manpower crunch especially at entry and junior
managem management levels. More than half of the students who pass out from catering
institutes, are not as keen to serve the budgeted hotels. On the contrary, they opt for overseas
jobs, cruise liners, and airlines, which offer attractive remuneration. This again has created
problems for hoteliers to recruit qualify staff at entry level.
Estimates reveal that an assistant housekeeping manager with two to three years
experience on the cruise lines makes about US $1,900 (Rs 82,650) a month. An assistant
purser front desk receptionist for the same liner, with some experience, will get about US
$1,650 (Rs 71,775).
INCON - XI 2016 270

The travel and tourism sector is clearly enjoying the fruits of boom time. On the other
hand, the hospitality industry is witnessing a significant churn. Today, erosion in hotels is not
restricted solely to entry level.
With a large number of new properties on the anvil and lucrative opportunities in other
service segments, the churn at senior levels is happening. In order to cope, hotel chains are
putting retention programmes in place, while poaching from other industries like financial
services. At this juncture, manpower crunch - especially skilled and trained manpower, is a
major issue. Mere mushrooming of catering institutes and colleges will not suffice.
The industry should work on how to attract good talent and how to retain existing talent.
And, naturally, poaching has become the order of the day, resulting in at least 30 to 35 per cent
erosion . India has a hotel room inventory of over 1,10,000 across all categories in the
organised hospitality sector. However, the unanimous verdict is that the industry has failed to
keep pace with the exponential economic growth, and therefore a substantial demand-supply
gap exists. It is no surprise then that room rates are steep and room availability is low across
cities, with the situation worsening in peak season.
 Reasons for Higher erosion rates in the Industry:
As per an interesting study on the why workers decide to leave their job. Of course,
salary is one of the top ranked reason, but a few “affective” topics are involved as well,
proving that succesful management and employee motivation is not just a question of raw
money.
 Inadequate Compensation (57.2%): Compensation below the market average, or lack
of annual increases, i.e. More money is one of the major reason why people leave the
job.
 Inadequate Opportunities for Career Advancement (37.3%) :Dangling the ‘carrot’
for too long as a demotivator,
 Insufficient Recognition or Appreciation (34.2%): Cash or gift certificates, or even
just a pat on the back, employees lack recognition.
 Boredom (20.1%): When employees just waste their time, or their company’s time.
 Inadequate Benefits (16.9%) : Insufficent basic medical coverage and healthcare
program
 Inadequate Opportunities for Professional Development (15.3%): People are finding
themselves too experienced for any further promotion in their company.
 Insufficient Job Security (11.8%): Fear of outsourcing, which shows employees
lacking confidence in upper management’s ability to save their company.
 Undesirable Impact on Health or Stress Level (10.5%): Overall health and stress level
being affected by hard working long hours. Physical strains because of long and odd
working hours.
 Poor Relations with Management (10%): Incompetent, clueless, overcompensated,
abusive, hostile or predatory boss. What fun ! Problems with peers and managers
 Undesirable Commute (9%): Gas vs Salary is becoming an issue for more and more.
 No personal life: Due to heavy & Long working hours.
 For Higher Education: Sometimes people go for higher education for further
promotions.
 Policies and procedures: sometimes may be due to the policies of management.
INCON - XI 2016 271

 lack of match between personal requirements and organisational culture was quite
prevalent
 Costs Companies has to bear due to higher erosion rate:
 Staff erosion (or turnover) and absenteeism represent significant costs to most
organizations. It is odd, therefore, that many organizations neither measure such costs
nor have targets or plans to reduce them. Many organizations appear to accept them as
part of the cost of doing business - a sign of increasing job mobility and decreasing staff
loyalty perhaps, a matter to be regretted but just 'one of those things.' They add a sum in
their budgets for 'temp staff' and 'recruitment' and forget about it.
However, it seems to be one of the areas in which HR can make a difference - and one
that can be measured in quantifiable, financial terms against targets.
It is clear that there are massive costs associated with erosion or turnover and, while
some of these are not visible to the management reporting or budget system, they are none the
less real. The 'rule of thumb' appears to be very inaccurate indeed and, while it depends upon
the category of staff, it is probably better to estimate around 80% of salary as a truer rule of
thumb - and this will be on the conservative side.
Following are some of the major costs company has to bear due to erosion of the
employees:
1 . Recruitment Costs
 The cost of advertisements; agency costs; employee referral costs; internet posting costs.
 The cost of the internal recruiter's time to understand the position requirements, develop
and implement a sourcing strategy, review candidates backgrounds, prepare for
interviews, conduct interviews, prepare candidate assessments, conduct reference
checks, make the employment offer and notify unsuccessful candidates. This can range
from a minimum of 30 hours to over 100 hours per position.
 Calculate the cost of the various candidate pre-employment tests to help assess a
candidates' skills, abilities, aptitude, attitude, values and behaviors.
2. Training Costs
 Calculate the cost of orientation in terms of the new person's salary and the cost of the
person who conducts the orientation. Also include the cost of orientation materials.
 Calculate the cost of departmental training as the actual development and delivery cost
plus the cost of the salary of the new employee. Note that the cost will be significantly
higher for some positions such as sales representatives and call center agents who
require 4 - 6 weeks or more of classroom training.
 Calculate the cost of the person(s) who conduct the training.
 Calculate the cost of various training materials needed including company or product
manuals, computer or other technology equipment used in the delivery of training.
3. Lost Productivity Costs
As the new employee is learning the new job, the company policies and practices, etc.
they are not fully productive. Use the following guidelines to calculate the cost of this lost
productivity:
 Upon completion of whatever training is provided, the employee is contributing at a
25% productivity level for the first 2 - 4 weeks. The cost therefore is 75% of the new
employees full salary during that timeperiod.
INCON - XI 2016 272

 During weeks 5 - 12, the employee is contributing at a 50% productivity level. The cost
is therefore 50% of full salary during that timeperiod.
 During weeks 13 - 20, the employee is contributing at a 75% productivity level. The cost
is therefore 25% of full salary during that time period.
 Calculate the cost of mistakes the new employee makes during this elongated
indoctrination period.
4. New Hire Costs
 Calculate the cost of bring the new person on board including the cost to put the person
on the payroll, establish computer and security passwords and identification cards,
telephone hookups, cost of establishing email accounts, or leasing other equipment such
as cell phones, automobiles.
 Calculate the cost of a manager's time spent developing trust and building confidence in
the new employee's work.
5. Lost Sales Costs
Calculate the revenue per employee by dividing total company revenue by the average
number of employees in a given year. Whether an employee contributes directly or indirectly
to the generation of revenue, their purpose is to provide some defined set of responsibilities
that are necessary to the generation of revenue. Calculate the lost revenue by multiplying the
number of weeks the position is vacant by the average weekly revenue per employee.
 Different solutions to reduce the high erosion rate in Industry.
Alarm bells are ringing loudly in corporate corridors as erosion rates in IT organisations
average 22 percent as per a study conducted by the Indian Institute of Technology, Bombay
(IIT-B) with a sample of 1,028 IT companies in the country. Another survey done by People—
a Gartner group company specialising in the management of human capital in IT
organisations—has observed that the average tenure of an IT professional is less than three
years.
Industry experts feel, as the industry was still in its nascent strategy there was lot of
strategies available to reverse this trend and make it an attractive employer. The HR
professionals need to redesign the HR policies for the industry without comprising on the cost
competitiveness
To arrest this trend, companies can look into various options like good rewards, bonding
programme, flexible working hours and stronger career path. With erosion rates ranging
between 30-60 percent in the BPO industry, HR specialists feel that a scientific and analytical
approach should be implemented.
Pay cheques alone are not enough to retain employees. Management also needs to
consider other aspects like secure career, benefits, perks and communication. The erosion
battle could be won by focusing on retention, making work a fun place, having education and
ongoing learning for the workforce and treating applicants and employees in the same way as
one treats customers.
According to experts, the cost of erosion is 1.5 times the annual salary. Age should not
be a barrier for training employees and could in fact bring in more stability to the company.
 Total transparency in its HR practices to ensure continuous business growth.
Top management should communicate continuously with all the employees about the
vision and mission of the company. Line managers or project managers should establish a
INCON - XI 2016 273

connection between the lower-level and top management. Develop leaders at all levels.
Understanding an employee’s needs at various levels is a recommended HR practice.
 Additional Benefits :
Offering medical insurance, taking care of employees’ families, and a good overall
package should make sure these processes are not derailed. Going to onsite locations matters a
lot to IT workers, so organisations should allow all employees to avail of this chance on a
rotational basis.
 It is important to take feedback from employees:
Through different means and work with the HR department to iron out differences.
 Exit interviews:
Help management learn the reasons why employees leave the company; based on their
revelations, the organisation can address the problems of existing employees, thereby curb
erosion .
 Employee’s advocate :
One of the main reasons why employees leave IT companies is because of problems
with their managers. An HR professional can be termed an employee’s advocate and a bridge
between top management and employees at all levels. There is a huge gap between HR
professionals and IT professionals in terms of understanding challenges and delivering
requirements.
 Training focus:
The company has a strong focus on manpower training according to their requirements.
The internal training department aims at improving the skill sets relevant to the work profile of
employees. This includes improving communication skills, e-mail programming and operation
systems. Train leaders in the skills they need to manage effectively. Identifying the right
training for the right person is very important . The use of new technologies, the support of
learning and training, and a challenging environment rank higher than competitive pay
structures as effective retention practices.
 Career growth:
Talent must be appreciated. Diplomas and courses for future growth should be offered.
Better employee retention schemes should be developed. Cash incentives can be used to
satisfy the employees. But money is not the only way to retain employees. Hire candidates
who actually need the job. Not the people who are taking up jobs on a temporary basis. Hiring
mature talent. Many young people do not take work so seriously.
 To curb a high erosion rate For HR managers
 Consider both a person’s culture-fit and job-fit.
 Understand the expectations at the entry level.
 Do not make false promises about benefits
Conclusion:
Though the higher erosion rate in the industry is the major challenge for the HR
department there are various ways to reduce it. Mainly the management has to Total
transparency in its HR practices to ensure continuous business growth. The HR depatment has
to play a very important role right from the manpower planning, recruitment & selection,
Training & development etc.

INCON - XI 2016 274

Competency Mapping: A Strategic Tool for Recruitment

Mrs. Vishranti Raut Mr. Saurabh Pandey
Lecturer, BBA Lecturer, B.Com
Dr. D.Y.Patil Arts, Commerce G.H.Raisoni College of Arts, & Science
Commerce & Science Wagholi, Pune Pimpri,
E-mail: - vishranti.it07@gmail.com Pune -18
E-mail: - saurabh.pandey7777@gmail.com
ABSTRACT:
Competency Mapping is a route to identify the key competencies required for an
organization and incorporating those competencies throughout the various processes
(i.e. job evaluation, training, recruitment) of the organization. Competency mapping is
the process by which we can resolve the nature and scope of specific job, skills and
knowledge required and the behavioral capacity of how those skills and knowledge will
be utilizes for the successful accomplishment of the job.
Competency Mapping plays an imperative role in selecting, recruiting and
retaining the right person for the right job. This research speaks about different methods
used for competency mapping such as interview, group discussion, group work, task
forces so that the competent person can be selected for the specific job.
Keywords: competency mapping, competency methods - interview, group discussion,
group work, task forces.
Introduction: -
In today’s competitive world it is becoming particularly important to build on the
competitive activities of business. Competency mapping explore individual‘s SWOT
(Strengths, Weaknesses, and Opportunities & Threats) for better understanding and this helps
to improve his career growth. It identifies the gap and helps the individual’s to improve and
develop their knowledge so as to meet the organizational requirement. Organizations are
enormously shifting their approach of having multi-skilled employees rather than only one
skill. The competence approach focuses on development of employees and enhancing their
competencies rather than preparing them for moving to jobs. In this way they can develop
capabilities useful throughout the organization as it changes and evolves.
Competency methods thus help the organizations by providing employees with excellent
performance, and also provide an important and useful tool to guide individual development.
What are Competencies?
Competencies are the characteristics of employees that lead to demonstration of skills
and abilities, which results in effective performance within an occupational area. It is a group
of knowledge, skills and abilities that affects once job, and compared with the performance on
the job, that can compared with the set standard and can be improved by means of training and
development programs.
In other word, competencies are characteristic of outstanding performers, who do more
often in more situations with better results as compared to the average performer.
INCON - XI 2016 275

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CON - XI
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76
 Foresight
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 Leadership
 Independence
HR Challenges:
 Retention and Motivation of personnel are major HR concerns today. The use of new
technologies, the support of learning and training, and a challenging environment ranked
higher than competitive pay due to which retention of employees become very difficult.
 Attracting the Best Talent is another challenge. Many organizations often experience
continues demands for the same kinds of professionals. The Indian software industry
often suffers from a shortage of experienced people, attracting them is a key HR
challenge.
 Another challenge faced by HR is to give good compensation and rewards to the
employees who have performed best so that they remain motivated and devoted toward
the organization.
 The HR professional is expected to be a strategic partner contributing to the success of
business plans, which to a great extent depend on HR policies pertaining to recruitment,
retention, motivation, and reward.
 Up-gradation of Skills through Re-training due to rapid and unpredictable changes and
the increased emphasis on quality of services are compelling to recruit adaptable and
competent employees. HR provide the employees with all the training they may need in
order to perform not only in their current projects, but also in related ones that they may
subsequently hold within the organization.
Types of Competencies
With a view to moving away from traditional method to describe competency in terms of
knowledge, skills and attitudes instead focusing on the self-image there are various
INCON - XI 2016 277

competencies that can be used for the development of performance of the employees in a
given job or role.
1. Core competencies
Core competencies differentiate an organization from its competition (e.g. the
technologies, methodologies, strategies or processes of the organization that create
competitive advantage in the marketplace). An organizational core competency is an
organization’s strategic strength.
2. Technical competencies
Depending on the position, both technical and performance capabilities should be
weighed carefully as employment decisions are made. For example, organizations that tend to
hire or promote solely on the basis of technical skills, i.e. to the exclusion of other
competencies, may experience; an increase in performance-related issues (e.g. systems
software designs versus relationship management skills)
3. Behavioral competencies
Individual performance competencies are more specific than organizational
competencies and capabilities. It is important that they be defined in a measurable behavioral
context in order to validate applicability and the degree of expertise (e.g. development of
talent)
4. Management competencies
Management competencies identify the specific attributes and capabilities that illustrate
an individual’s management potential. Competencies in this category should demonstrate
pertinent behaviors for effective management to be effective.
5. Organizational competencies
The mission, vision, values, culture and core competencies of the organization that sets
the context in which the work of the organization is carried out. (e.g. customer-driven, risk
taking and cutting edge).
6. Functional competencies
Functional competencies are those which are required in small or large measure within
specific function E.g. knowledge of products, labour laws, etc.
7. Threshold competencies
Threshold competencies are the characteristics which any job holder needs to have to do
the job effectively. E.g. language skills, computer skills etc.
Advantages of Competency Mapping:
 Increased Productivity.
 Improved Work Performance.
 Training that is focused on Organizational objectives.
 Employees know exactly what is expected from them.
 Empowered Employees responsible for their own development.
INCON - XI 2016 278

 Increase in Employee Retention Levels.
 Develop situational leadership skills.
 Manage to accept organizational changes.
 Talent retention
 Help to appreciate human capital.
 Help to properly utilize and manage HR.
Data Source
Primary Data
The primary data is being collected through questionnaires and discussion the various
employees in the organization. Sample size for the primary data collection (questionnaires and
discussion) was 20 employees.
Secondary Data
The secondary data is being collected from Internet, Journals, and Books and from
previous publications.
Conclusion
Competency Mapping is one of the most accurate means for helping in development of
the skill within the employee. It also helps to identify the job and behavioral competencies of
an individual in the organization. Competency mapping is not only made for the middle level
employees but it can also be done for the higher level and lower level employees.
Competency is a set of knowledge, skills and attitudes required to perform a job
effectively and efficiently. A Competency is something that describes how a job might be
done excellently; a Competence only describes what has to be done, not how. Core
competency is something which cannot be copied and it is the pillar upon which individual
rest.
REFERENCES:
[1] R.Yuvaraj, International Journal Of Scientific & Engineering Research, Volume 2, Issue
8, August-2011 1 Issn 2229-5518 Ijser © 2011 Http://Www .Ijser.Org :- Competency
Mapping – A Drive For Indian Industries.
[2] Dr. K.V. KANNAN, Mr.A.Jayaseelan: -A General Review Of Competency Mapping.
INCON - XI 2016 279

[3] R.Palaniappan : -Competency Management- A Practitioner’s Guide , Specialist
Management Resources
[4] Dr. Lovy Sarikal : -Competency Mapping: A Pre- Requisite For HR Excellence
[5] Article -“Competency Mapping”- By K. Murali Mohan
[6] Article -“The Art And Science Of Competency Mapping”- By T.V. Rao,
[7] Http://Www.Wikipedia.Com
[8] Seema Sanghi: -The Handbook Of Competency Mapping Understanding, Designing And
[9] Implementing Competencymodels In Organizations Second Edition

INCON - XI 2016 280

Significance of Competencies for Organization - A Case Study

Ankush Puri Dr. Asha Pachpande
Research scholar ,SPPU, Pune Director ,IBMR, Pune.
India India
ankush_p@yahoo.com
ABSTRACT:
Employee performance directly influences company performance. Organizations
who understand the employee competency and assign the responsibilities based on
competencies, take a path of success. Right mapping of employee competency, to right
job profile, helps in achieving organization objectives. This paper describes a case
study on significance of competencies for organization, based on data collection.
Introduction
The research was conducted in ELCOM International Private Limited. Theoretical
knowledge is insufficient to cope up with the modern functioning of the companies. So in
order to gain knowledge about competencies of employees of ELCOM International Private
Limited, a survey was conducted through a questionnaire and responses were analyzed.
Further, competency significance is studied as per the following research methodology:
Objectives
 To study the respondents opinion about the competencies in Elcom.
 To review employees opinion on initiatives taken by the organization regarding
competency mapping.
Sampling Procedure
Sampling is a method of selecting a few items from a particular group to obtain relevant
data which help in drawing conclusions regarding the entire group i.e. population or universe.
Sampling Size
The sample size selected for the study was 100 employees of “ELCOM, who have
experience of minimum 5 years.
In this study, competency is measured with reference to the following parameters.
(a) Income level of the respondents
(b) Job allotment based on competency of the employee
(c) Equal treatment at work place irrespective of competencies
(d) Influence of working conditions on employee productivity
(e0 Opportunity to develop special abilities
Table No - 1 : Income level of the respondents
Income Level No. of Respondents Percentage
Below Rs. 5,000 - -
Rs. 5,000 – Rs.10,000 38 38
INCON - XI 2016 281

Income Level No. of Respondents Percentage
Rs. 10,000 – Rs.20,000 59 59
Above Rs. 20,000 3 3
Total 100 100
Inference:
The above the table shows that as much as 82 per cent of the respondents are in the
higher income group of more than Rs. 10,000 income per month. Hence it can be inferred that
monetary benefits are not a constraint to assess the quality of work life, in the study unit.
Table No - 2 : Job allotment based on competency of the employee
Opinion No. of Respondents Percentage
Strongly Agree 46 46
Agree 51 51
Disagree 2 2
Strongly Disagree 1 1
Total 100 100
Inference:
The above the table states that as much as 97% of workers in the study unit were of the
opinion that their job enables them to use their competencies in full. Only 3% of them
disagreed to this point. Hence, it can be inferred that the work in the study unit is such that
which allows almost all the workers to use their skill and ability in full.
Table No - 3: Equal treatment at work place irrespective of competencies.
Agree 57 57
Disagree - -
Strongly Disagree - -
Total 100 100
Inference:
The above the table shows that no harm is done to the self-respect of the workers in the
study unit. 43% of the respondents strongly agreed to the statement and 57% of the
respondents also opinioned that the workers are treated equally irrespective at their work
places. Thus it can be concluded that the organization provides equal treatment at work place
irrespective of competencies.
Table No - 4 : Influence of working conditions on employee productivity
Agree 51 51
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Disagree 2 2
Strongly Disagree 1 1
Total 100 100
Inference:
From the above table it can be understood that almost 97% all the workers in the study
unit either agree or even strongly agree that the conditions on their job allow them to be
productive. Only 3% of them were of negative opinion. Thus, it is clear that the conditions on
job are congenial to raise the productivity of the workers which is very essential for both the
management and workers to achieve their objectives of higher productivity.
Table No - 5 : Opportunity to develop special abilities
Agree 63 63
Disagree 12 12
Strongly Disagree - -
Total 100 100
Inference:
The above table states that 25% of the workers strongly agree to the point that there are
adequate opportunities to develop their own competencies in the work place. 63% of the
respondents agree to it only to some extent. Only 12% of the workers find no such
opportunities in the study unit. Hence, it can be inferred that the opportunities available in the
workplaces to develop competencies s of the workers is satisfactory. No doubt in the
improvement of competencies would definitely improve the quality of work life in the study
unit.
Findings:
 From the table 1, it is inferred that as much as 82 per cent of the respondents are in the
higher income group of more than Rs. 10,000 income per month.
 From the table 2, it is inferred that as much as 97% of workers in the study unit were of
the opinion that their job enables them to use their competencies in full. Only 3% of
them disagreed to this point.
 From the table 3, shows that no harm is done to the self-respect of the workers in the
study unit. 43% of the respondents strongly agreed to the statement and 57% of the
respondents also opinioned that the workers are treated equally with respect at their
work places.
 From the table 4, it is inferred that almost 97% all the workers in the study unit either
agree or even strongly agree that the competencies allow them to be productive. Only
3% of them were of negative opinion.
 From the table 5, it is inferred that 25% of the workers strongly agree to the point that
there are adequate opportunities to develop their own competencies in the work place.
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63% of the respondents agree to it only to some extent. Only 12% of the workers find
no such opportunities in the study unit.
Conclusion
This study reveals that Elcom gives importance to competency mapping and works are
assigned based on employee skill set. It also indicates that all the employees are equally
treated with respect and are given good working conditions and opportunities to excel in their
area. The same study can be applied on various types of companies to evaluate the signifance
of competency mapping to get optimum result.
REFERENCES:
 K. Aswathappa (1997), “Human Resources and Personal Management” Tata Mcgraw-
Hill Publishing Company Limited, New Delhi – 110 001.
 C. R. Kothari (2001) “Research Methodology” of Wishwa Prakashan Publishing,
Chennai – 17, Edition
 C. B. Mamoria and S. V. Gankar (2001), “Personnel Management Text & Cases”,
Himalaya Publishing house Mumbai, XXI Edition.

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The Role Of Competency Mapping In Employee Performance And

Development With Respect To Selected IT Industries In Pune City
Prof. Mrunal Belsare
Assistant Professor
MIT School Of Management
mbelsare@mitsom.com
ABSTRACT:
The competency is the underlying characteristic of a person which enables them to
deliver superior performance in a given job, role or situation. HRD aims at constantly
assessing competency requirements of different individuals to perform the jobs assigned
to them effectively and provide opportunities for developing these competencies to
prepare them for future roles in the organization. It is necessary to keep the record of
employees’ Job Roles and prepares the Job descriptions accordingly.
The present study was undertaken to analyze employee competencies including
Attributes, Skills and Knowledge parameters in detail and make a gap analysis in the
actual and desired skills and assess the training needs of the employees. It will help to
improve the performance of the employees in general and provide information to the
company about the skills they possess which will ensure development of promotion
strategies within the company. The parameters were derived from the Job roles, HR
policies and Key Result Areas (KRAs).
Keywords : Job roles, Job descriptions, competencies, attributes, skills, knowledge and
KRAs,
Introduction
Chankya‟s Arthashastra, is probably the first book on Competency Mapping. It is
perhaps the oldest management book which is still proving to be an excellent leader for
management professionals and practitioners. The book contains competency mapping models,
the thesis and theories of human aptitude, intelligence quotient and emotional quotient. In
general, it has everything related to human behavior regarding work, logic and emotions.
Competency is “an underlying characteristic of a person in that it may be a motive, trait
or skill aspect of one‟s self –image or social role or body of knowledge.” - Boyatzis (1982).
The competence approach encourages employees to develop competencies which can be used
in diverse work situations rather than being boxed into the job. Employee Development also
focuses on enhancing employee competencies which help them to cope up with organizational
change.
Competency may take the form of Knowledge, Attitude, Skill and Values. Besides these,
it may also include characteristics of an individual, motives and self-conception. Katz in a
classic article published in Harvard business review in 1994, grouped competencies into 3
categories which were later extended to four including:
1. Technical i.e. relating to technology/ know-how. It is associated with function, role or
task and hence, termed as functional category.
2. Managerial/ Organizational- It deals with managerial aspects including planning,
resource mobilizing, organizing, monitoring etc.
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3. Human/ Behavioral- These competencies deals with personal, inter personal and group
matters.
4. Conceptual- They include visualization, model building and so on.
In view of the significance of the competencies, for the employees and the organization,
competency mapping becomes indispensable. Competency Mapping is a process of
identification of competencies required to successfully perform a particular job or role or a set
of tasks at a given point of time. It consists of breaking the given job into constituent tasks and
identifying the competencies needed to perform the job successfully. It is a way of assessing
the strengths and weaknesses of the employees or organization. It’s about identifying a
person’s job skills and strengths in areas like teamwork, leadership, and decision-making.
Large organizations may use some form of this technique to understand how to best use each
worker or how to combine the strengths of different employees to produce the highest quality
work. Individuals may also find that this type of assessment can help them prepare for a career
change or advance in a specific job field. (Solomon, 2013)
For building strong working relationship within the organization, competency of the
people has to be continuously monitored and enhanced in congruence with the business plan.
There are various competencies including Initiative taking, Strategic Thinking, Business
Acumen, Relationship Building, Teamwork, Cooperation & Collaboration, Communication,
Strategic Thinking Problem Solving & Decision Making etc. Competencies vary from Job to
Job, Department to Department. For different departments and different jobs, these
competencies have separate weightage.
Accordingly, Competency Mapping rates the employee skills and helps them to improve
the competence which is important for their career development. In view of the recent
developments of liberalization and globalization, every organization has to achieve excellence
to become global. Competence Development will play a pivotal role in this regard.
Considering the significance of Competency Mapping in an organization, the present
project has been undertaken with reference to IT Sector in Pune .
IT industry in India .
IT Industry In India The Information technology industry in India has gained a brand
identity as a knowledge economy due to its IT and ITES sector. The IT–ITES industry has two
major components: IT Services and business process outsourcing (BPO). The growth in the
service sector in India has been led by the IT–ITES sector, contributing substantially to
increase in GDP, employment, and exports. The sector has increased its contribution to India's
GDP from 1.2% in FY1998 to 7.5% in FY2012.According to NASSCOM, the IT– BPO sector
in India aggregated revenues of US$100 billion in FY2012, where export and domestic
revenue stood at US$69.1 billion and US$31.7 billion respectively, growing by over 9%.The
major cities that account for about nearly 90% of this sectors exports are Bangalore,
Hyderabad, Chennai, Delhi, Mumbai, Pune.
HR Challenges In The Indian IT Industry
 Retention and Motivation of personnel are major HR concerns today.
 Attracting the Best Talent is another challenge. In a tight job market, many organizations
often experience precipitous and simultaneous demands for the same kinds of
professionals. The Indian software industry suffers from a shortage of experienced
INCON - XI 2016 286

people such as systems analysts and project managers, and attracting them is a key HR
challenge.
 Coping with the Demand-Supply Gap: Shortage of IT professionals is global in nature
and not peculiar to the Indian software industry alone.
 Compensation and Reward: Increasing demands of technology coupled with a short
supply of professionals (with the requisite expertise) has increased the costs of
delivering the technology.
 Integrating HR strategy with Business Strategy: The strategic HR role focuses on
aligning HR practices with business strategy.
 Up-gradation of Skills through Re-training: Rapid and unpredictable technological
changes, and the increased emphasis on quality of services are compelling IT businesses
to recruit adaptable and competent employees.
Statement of the Problem
Dynamic people build dynamic organizations and effective employees contribute to the
effectiveness of the organization. Competence of the employees plays a key role to enhance
overall efficiency of the organization.
Competency Mapping is therefore quite useful for the organizations in terms of their
own growth and growth of their employees.
The present study seeks to determine the competencies needed by the employees for
their own development and consequently the growth of the organization.
Objectives of the Study :
The study has been undertaken with the following objectives in mind.
1. To study the Job roles and Job descriptions of the respondents.
2. To study the reason why the various competencies are required.
3. To study the level of leadership competence as required by their future expected roles.
4. To study the gaps in actual and desired competencies.
Primary Data has been used for the study. However, at appropriate places, secondary
data has also been used.
The data on employee competency has been collected from the company records,
personal interaction with the employees, their superiors, peers and employees of other
departments.
For this purpose, the various parameters of attributes, skills and knowledge were framed
in accordance with HR policies, job roles and KRAs which were approved by the HODs and
the HR department.
For the purpose of data collection, 32 employees were selected representing nearly 12%
of the population on random basis.
The analysis has been made by applying charts, tables, diagrams and statistical tools. HR
tools have also been applied to arrive at appropriate conclusions.
Scope of the Study
The research is limited to the selected IT industries in Pune region .
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Significance of the Study
The study is of great significance to the employees and the organization as it provides an
insight to the individual to ascertain the competencies he possesses, the potentials he has in
him and the perception of the superiors and other members about his abilities. The
organization on the other hand is likely to be benefited from this study as it will be able to
analyze the training needs, the gaps in actual and desired skills, future perspectives for
development in an individual. It will also help the company to improve its overall efficiency
and effectiveness.
Survey of Literature
A review of literature highlights the important role played by Competency Mapping in
employee development and successful performance of organizations. Some studies have been
undertaken in the past to study Competency
Mapping in the Indian Organizations.
Arya Chankaya in his book “Arthashastra” has explained competency mapping models
as early as 3000 years ago. But in the present times, McClelland [1973] pioneered
Competency movement. In his study, he has presented data to show that traditional
achievement and intelligence scores may not be able to predict Job Success and it is only the
exact competencies required to perform a given job effectively and measuring them using a
variety of tests, one can be sure about his profile.
Katz [1994] in his study on Competency Mapping grouped competencies under three
categories including:
Technical, Managerial and Behavioral (Human).
Solomon [2013] in his study on Competency mapping has tried to explore the level of
Competency prevailing among the executives of public sector. The results of the study show
that nearly half of the respondents have moderate level of managerial HR and general
competencies.
Yuvaraj [2011] has explained the Job Competencies required to work in a
manufacturing industry, professionals for knowledge, ability and attitude. Gap analysis was
also made to a limited extend.
Md.Ishtiak Uddin, et. al. [2012] in his study “Competency Mapping: A Tool for HR
Excellence” has explained various tools for implementing Competency Model including Job
Analysis, Job Description, Job Specification, used for coaching and succession planning,
Considering the significance of Competency Mapping for individual and organizational
growth, the present study was undertaken. In this study, efforts have been made to elaborate
the various competencies with minute parameters and to correlate them with the managerial
competence level.
How is the Competency Mapping done?
Every organization that wants to achieve its goals in terms of productivity, quality,
profitability, stability and growth and increase organizational effectiveness, it must pay
attention to the enhancement of competencies of its human resources in a systematic and
planned manner.
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Human Resource Department is responsible for the development of the employees‟
competencies, dynamism, motivation and effectiveness in a systematic and planned manner.
The competency development is a process which can be presented with the help of following
diagram.
Fig. 1 : Competency Development Process

The study is based on the following “Competency Model” It is a framework which
defines a set of competencies for a specific position and level in the organization, if possessed
by incumbents, is likely to produce desired results.
The objective of Competency Model is to:-
 Translate Vision, Values & Goals into expected employee behavior.
 Provide input for:
 Recruitment & Staffing
 Competency based Training Programs,
 Performance Evaluation & Developmental Plans.
 Talent Management & Succession Planning
 Improve Employee Engagement and Retention.
Competency Model
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The competency is the underlying characteristic of a person which enables them to
deliver superior performance in a given job, role or situation. The various components of
Competence Assessment of the jobs have been explained with the help of following diagram:
Various parts of the diagram are further explained as under:

A. Visioning, Groundwork, Planning & Awareness Creation
For the purposes of Competency Mapping of the employees, all the employees of the
company is explained the objectives of Competency Mapping in their departments separately
under the supervision of their departmental heads.
The Attributes, Skills and Knowledge variables are studied and selected in consultation
with the heads of departments and HR Department. The various parameters for these variables
have been taken from the KRA (Key Result Areas) Reports, SOPs (Standard Operating
Procedures), Job Roles and Policy Statements of the Company.
B. Designing Competency Model & Data Gathering

The process of designing the competency model and collecting data has been explained
with the help of following flowchart:
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Data Collection
To assess employee competencies, the data is collected. Following steps are generally
taken for this purpose.
1) Format of Job Description is finalized in consultation with the HR Department.
2) Job Description of the employees is completed in consultation with the employees in
predetermined format.
3) The job descriptions of the employees are finalized after the following process is
undertaken
a. The employee approved the Job Description
b. The HODs approved the relevant information in the Job Description to avoid
exaggerations.
c. The review of the HR Department was obtained to avoid biasness.
4) As indicated earlier, the assessment of the employees on three aspects was taken up:
a. Attributes
b. Skills
c. Knowledge
5) Various parameters on all the above three variables are selected. These parameters are
further elaborated by adding factors of each parameter to bring in more clarity and
precision.
6) The parameters are derived from the Key Result Areas (KRA) included in the
Performance Appraisal System.
7) The scores on all the three variables viz. Attributes, Skills and Knowledge are averaged
to find the final score. Assessment is made on the basis of five point Scale in personal
interaction with each of the employees. The final score is used to analyze the ranking of
each employee on 5-point scale In order to study the competency development skills
among the employees, the following steps are undertaken:
1. Job Description
2. Assignment of Scores on attributes, Skills and Knowledge of the employees
3. Assessment of Overall Competency of the employees.
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4. Evaluation of Overall Skills of the employees to ascertain the Level of Managerial
Competence in them.
1. Job Description
Job description explains the job roles, responsibilities, knowledge and skills of the
employees. Job Description is been prepared after making interaction with the employees,
HODs and Peer Group. As it is not possible to present the Job Description of all the employees
here, a specimen of the Job Description is presented below. It will help in the analysis of
competencies of the
2. Assignment of Scores on Attributes, Skills and Knowledge of the Employees
The competency of an employee is the sum total of three variables – Attributes, Skills
and Knowledge. Various competencies have been analyzed on the basis of behavioral
indicators. These indicators have been used as parameters to assign scores on particular
variables. The scores on these variables were assigned to the respondents on the basis of
evaluation conducted with personal interaction with them. The authenticity of the data was
cross checked by interacting with the subordinates, the peers, superiors and the cross
functional departments. The opinions of the HODs were taken up separately on each
parameter for each employee working in their department to match the observed results with
the ratings of HODs. Re consultation were made with the employees and HOD where there
was larger gap and necessary corrections were made. However, the analysis has been made on
the basis of observed results.
In this section, scores on the following variables have been assigned and analyzed but
only composite score on each parameter has been presented in part 3 later:
 Attributes: Attributes include Performance Focus, Entrepreneurial Drive, Customer
Responsiveness, Trustworthiness, Quality Orientation, People Development and
Concern for Safety & Management
 Skills: The Skills include Specialized Work Centric Knowledge, Ability to Plan &
Execute, Analytical Skills, Ability to Learn, Problem Solving & Decision Making,
Interpersonal Communication Skills. Business Acumen, Team Work, Cooperation &
Collaboration, Relationship Management, Initiative Taking, Coaching Strategic
Thinking and Global Prospective
 Knowledge: The parameters of knowledge were job role specific and differed from
department to department.
It is not possible to derive the nature of competencies of all employees on the basis of
Job Description. The scores presented below are assigned to the respondent, whose job
description has been shown above. These scores are assigned to above variables with respect
to the parameters for each such variable. These parameters have been evaluated on the basis of
several indicators. The parameters have been evaluated on the basis of various indicators.
The scores on various parameters of the variables of the selected respondent on
attributes, skills and knowledge have been shown in the tables later. The variables and their
parameters are described here as below:
I. Attributes
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All the attributes mentioned above have a great impact on the assessment of employee
performance. Attainment of moderate level of these attributes is mandatory in RXY for all the
employees as it is an important part of their K R As.
a) Performance Focus
Performance Focus is defined as the set of human attributes required to achieve work
related results & thereby improve organizational & individual efforts.
b) Entrepreneurial Drive
Entrepreneurial Drive is defined as the set of human attributes required to display
entrepreneurial behavior, spot and capitalize opportunities.
c) Customer Responsiveness
Customer Responsiveness is defined as the set of human attributes required to
understand & satisfy customer needs & requirements.
d) Trustworthiness
Trustworthiness is defined as the set of human attributes required to keep commitment
and holds on ethical values and culture.
e) Quality Orientation
Quality orientation is defined as the set of human attributes required to provide quality
products & services by showing concern for all aspects of the job & accurately checking
processes and tasks.
f) People Development
People Development is defined as the set of human attributes required to understand
peoples' self-concept, traits, attitude and motivating factors and thus identify their
development needs.
g) Concern for Safety & Management
Concern for Safety & Management is defined as the set of human attributes required to
ensure safe & healthy work environment.
II. Skills
The various components of the skills have been studied under this sub-section including:
a) Specialized Work Centric Knowledge
Specialized work centric knowledge is defined as the set of human attributes required to
effectively perform the technical responsibilities of the job position.
b) Analytical Skills
Analytical Skill is defined as the set of human attributes required to understand &
interpret the data or information and identify patterns and draw logical inferences.
c) Ability to Plan & Execute
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It is set of human attributes which enable an individual to visualize the interrelationships
of activities, foresee requirements of different resources to enable him to carry out the planned
activities to meet objectives within timelines and as per customer satisfaction.
d) Team Work, Cooperation & Collaboration
It is a joint action by two or more persons having different set of skills, interests &
opinions who have come work collaboratively in order to achieve common goals.
e) Ability to learn
It is defined as the set of human attributes required to continuously update oneself &
learn by observation, experience, innovation, interlinking of two or more concepts (creativity)
and apply it when required.
f) Problem Solving & Decision Making
Problem Solving & Decision Making Skill is defined as the set of human attributes
required to quickly identify and understand the key issues, evaluate the alternatives, pros and
cons and then take an effective decision to impact organization in a positive manner.
g) Interpersonal Communication Skills
Interpersonal Communication skills are set of human attributes including all aspects of
personal interaction, contact and communication between individuals or members in a group.
It includes a variety of skills such as persuading ability, convincing ability, conflict
management ability, and influencing ability to achieve the desired result.
h) Relationship Management
It is defined as the set of human attributes required to manage relationships with internal
& external customers to build loyalty and meet business objective.
i) Initiative taking
Initiative taking skill is defined as the set of human attributes required to identify and act
upon new opportunities to enhance business results without being asked or delegated.
III. Knowledge:
The parameters of knowledge included updation; in-depth knowledge of instruments,
equipment, systems; knowledge of processes; documentation; applicability of technical skills
etc.
Conclusion:
Assessment of Overall Competency of the Employees , as discussed earlier, the
competency is sum total of Attributes, Skill and Knowledge. i.e.
Competency = Attributes + Skills + Knowledge
On the basis of total average score, the level of competency of each respondent has been
ascertained and designated as under:
Level of Competency:
Level 1: Limited - Does not demonstrate the competency on the job or may have had limited
opportunity or understanding to demonstrate the competency.
Level 2: Basic - Demonstrates the competency minimally with basic understanding needed for
the job.
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Level 3: Proficient (Medium) – Demonstrates consistency in performing the job to a
reasonable extent.
Level 4: Proficient (High) - Demonstrates high level of specialization in performing the job.
Level 5: Expert - Demonstrates the competency at an exceptionally high level with in depth
understanding.
As indicated earlier, various parameters have been used for studying the variables of
Sills, Attributes and Knowledge. For the purposes of interpretation of these variables, the total
score of all the parameters of a variable were summed up and average score was derived by
dividing the total score with the number of parameters.
There is a strong and positive relationship between possession of competencies and
successful job performance. This can be explained by the fact that HR jobs have different role
to play and each role requires different dimensions of behavior. Thus, competencies and
competency models are a viable tool that can be utilized to prepare the current and future
workforce and retain skilled incumbent workers to meet the job requirements and other needs
of employers.
REFERENCES :
1. Boyatzis. R– (1982), ‗The Competent Manager: A model for effective Performance‘.
New York Wiley – 6.
2. Cascio. W.F. (1998),. ‗Applied Psychology in Human Resource Management‘.
Englefield Cliffs; N.J. Prentice Hall – 9
3. Cockerels, T., Hunt, J., & Schroder, H. (1995), ‗Managerial competencies: Fact or
fiction?‘ Business Strategy Review – 26
4. Dubois (1993), ‗Competency Based performance improvement: a strategy for
organizational Change‘. Amherst: HRD- 12
5. Lucia, A. D., & Lepsinger, R. (1999), ‗The art and science of competency models:
Pinpointing critical success factors in organizations‘. New York: Pfeiffer – 28
6. Lucian Cernusca and Cristina Dima (2007), ‗Competency and Human Resource
Management‘. International journal of psychology, Vol.II.
Websites ;
1. http://www.theijm.com/vol2issue3/1.218.pdf
2. file:///C:/Users/mitsom/Downloads/33620-33276-1-PB.pdf
3. file:///F:/competancy%20mapping/research%20paper%202%20.pdf
4. http://www.ermt.net/docs/papers/Volume_2/issue_10_October2013/V2N10-130.pdf

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A study on Work-Life Balance in Working Women

Ms. Shital H. Rathod Mrs. Sunayana Shivthare
Faculty Department of Computer Science
Department of Computer Science Dr.D.Y.Patil ACS College Pimpri,Pune
Dr.D.Y.Patil ACS College Pimpri,Pune sunayanashivthare@gmail.com
Sheetal6.rathod@gmail.com
ABSTRACT:
The role of working women has changed throughout the world due to economic
conditions and social demands. This has resulted in a scenario in which working women
have tremendous pressure to develop a career as robust as their male counterparts
while sustaining active engagement in personal life. The ever-increasing work pressure
is taking a toll on the working women leaving them with less time for themselves. The
increasing responsibilities on the personal front with the technological Blessings like
advanced mobile phones, notepads, etc. that keeps work life integrated with personal life
also creates stress on personal and professional fronts in this knowledge age. This
affects the person’s physical, emotional and social well-being. Thus, achieving work life
balance is a necessity for working women to have a good quality of life. This paper is an
attempt to explore the tough challenges faced by working women in maintaining a
balance between their personal and professional life. The various factors affecting the
work-life balance of married working women have been examined in this study.
Keywords: Working life balance, Working women, Role model,
Introduction
Work life balance is a concept that supports the efforts of employees to split their time
and energy between work and the other important aspects of their lives. Work-life balance is a
daily effort to make time for family, friends, community participation, spirituality, personal
growth, self care, and other personal activities, in addition to the demands of the workplace.
Work-life balance and working women
Traditionally, women have been looked upon as nurturers and care givers and assigned
all roles related to maintaining and managing a family.. In urban India, the percentage of dual-
earner couples is gradually increasing and for most women and men today, their work
environment and the family have become the two important institutions in life. Women often
find it more difficult to maintain balance on account of the competing pressures of work and
demands at home. Working women have to carefully handle their personal balance and
skilfully blend their roles, so as to optimise their potential in all quadrants of life.
Factors affecting work life balance
Burden of excessive work: Most of the respondents agree that they suffer from the
burden of excessive work. Working women are often confronted with tasks involving children,
home, in-laws, parents and their social circle. To add to this they must also take up multiple
roles in their personal lives. With the increasing demands on the job, working women have to
spend long hours of work and sometimes even carry their work home. Therefore majority of
INCON - XI 2016 296

them are burdened with excessive work in both their personal and work spaces. This is a
contributing factor to work life imbalance and may lead to conflict.
Interference of work with family life:
Majority of the respondents agreed that work interfered with family life. This may be
attributed to the fact that mostly work hours are not limited to 7 or 8 hours a day and the
private sector employees spend 12-16 hours at work. This leaves them with very little time for
family. As more that one half of the respondents are employed in the private sector, there may
be interference of work with family life due to long hours spent in completing official work.
Fulfil others’ expectations:
A large majority of the respondents agree that they are under pressure to fulfil other’s
expectations. As working women are constantly juggling between two full time jobs, taking
multiple roles in both domains, there is a lot of work pressure resulting in work life conflict.
While, there is a lot of expectation from family to fulfil social roles, the organisation also
expects them to perform effectively. Both domains expect the working women to do full
justice to all their roles thereby exerting tremendous stress and strain. The above analysis
suggests that in trying to fulfil others’ expectations, working women are often left with very
little space for themselves to pursue their personal interests.
Longer work hours:
Working women have to put in longer hours of work as they need to compete with their
male counterparts in their work domain so as to remain in the race for advancement and
promotions. In the Indian context, women remain the sole caretakers of children and older
dependents which will entail longer hours of work at home thus jeopardizing their work life
balance. It is observed that working women
are left with hardly any time to pursue personal interests.
No time for oneself:

Majority of the respondents agreed that they had no time for themselves. Though a large
majority of the respondents did not have to travel frequently at work and over half of them
also had family support, they had to commute long distances everyday to work. This robbed
them of precious time that could be constructively spent for their personal growth or spiritual
pursuits.
Further, the analysis of responses on factors affecting work life balance has indicated
that working women selected for the purpose of this study are not necessarily stressed due to
financial pressures. The respondents also disagree that they do not find time to meet social
obligations. Working women in India are not exempt from fulfilling their social obligations.
As women are aware that certain social obligations must be met whether they are working or
not, they may be consciously setting aside the time to fulfill such obligations. Discussions with
respondents revealed that though the younger generation Indian men today are more tolerant
of non-traditional lifestyles of the working women in their homes, they are still fairly
conservative and expect women to manage household work and childrearing tasks. Often,
working women are expected to make career sacrifice by restricting themselves to limited
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work at the workplace. This may cause anger and frustration which has the potential to spill
over to the various roles women play in their work and family lives.
Three factor model
This model advocates that the key to healthy work life balance lies in maintaining a
dynamic equilibrium of three factors i.e. knowledge, behaviour and skill in both family as well
as work life. The three factor model is depicted in table 1 as follows:
Three factor model
Factors Family Work
Knowledge Self Organisation
Other Environment
Tasks Functions
Skills Peace -Keeping Decision –Making
Sharing -Feeling Communication
Networking Technical
Behaviour Relationship Role
Social Profession
Informal Formal
Knowledge of the self, others and tasks in family life enables the working woman to
engage effectively in her multiple roles as mother, spouse, sister, daughter and so on. It also
enables her to develop meaningful relationships with others and provides clarity of the tasks
involved in managing the various roles. In having complete knowledge of her organisation, the
external environment with which she must interface and the functions that her work roles
involve, the working woman can establish the right balance for achievement and enjoyment in
both spheres.
In family life, the working woman’s behaviour being relationship based, she must accord
due importance to all her personal relationships and engage in the social environment through
informal interaction. Her behaviour in the work place should be role based and therefore,
professional and formal. The working woman also has to develop relevant skills to deal with
both, the family and work spheres. In the family space, she should be adept in peace keeping
skills by sharing feelings and encouraging others to do the same. Moreover to build her
support system, she must network effectively. In the work space, she must focus upon
decision making and technical skills and ensure that she builds effective communication
with her team. A judicious blend of the three factors – knowledge, behaviour and skill will
enable the working woman to strike a healthy work life balance.
Conclusion:
In the Indian culture, women remain primarily responsible for their family and career is
rarely given top priority. This study has revealed that burden of excessive work, the need to
fulfil others’ expectations and not having time for themselves are the prime factors affecting
work life balance of working women. As a consequence women suffer from job burn-out,
experience high levels of stress and anxiety, are unable to realize their full potential and also
do not enjoy harmonious family life. Informal discussions with working women revealed that
INCON - XI 2016 298

those who had family support and flexible work schedule enjoyed better work life balance.
The above findings have implications for working women with regard to gaining a deeper
understanding of factors affecting work life balance. It also provides insights into finding
solutions to maintain healthy work life balance.
The role analysis model and the three factor model of work life balance clearly elucidate
the fact that working women must take responsibility to achieve a harmonious balance in both
spheres of their lives.
REFERENCES
[1] Achanta, Raja (2004). The Work- life Balance. HRM Review March 2004, The ICFAI
University Press.
[2] Champoux, Joseph E. (1978). Perceptions of work and non work – A Re-examination of
the compensatory and spill over models. Sociology of work and occupations,
November,1978.
[3] Duxbury, Linda-Elizabeth and Higgins, Cristopher Alan (1991) Gender differences in
work family conflict. Journal of Applied Psychology, 76.
[4] Frone, Michael R, Russell, Marcia; Cooper Lynne M. (1992). Antecedents and outcomes
of work-family conflict: Testing a model of the work-family interface. Journal of
Applied Psychology Vol.77 No.1.
[5] Frone, Michael R.; Russel, Maria; Cooper, Lynne.M (1992). Prevalence of work-family
conflict: Are work and family boundaries asymmetrically permeable. Journal of
organisational Behaviour, Vol.13.
[6] Grice, M.M.; McGovern, P.M.; Alexander, B.H.; Ukestad.L; Hellerstedt, W.(2011).
Balancing work and family
[7] Adam, Lynn M. et al., 2004. It's About Time: Part-Time Policies and Practices in Atlanta
Law Firms.
[8] Association of the Bar of the City of New York, 2008. The Committee on Women in the
Profession, “Parental Leave Policies and Practices”, 63 The Record 94. (LexisNexis).
[9] Baker and Katharine K. 2007. Supporting Children, Balancing Lives”, 34 Pepp. L. Rev.
359 (Issue 2). (HeinOnline) (CSU remote access). Benton,
[10] Cathy and Brown, Nicole, 2008. Taking Care of Lawyers Taking Care of Children”, 17
Business Law Today 12 (January/February 2008). (Westlaw).
[11] Chanow and Linda Bray. Results of Lawyers, Work and Family: A Study of Alternative
Schedule Programs at Law Firms in the District of Columbia", available via the
Women's Bar

INCON - XI 2016 299

Digitalization of Human Resource Management in Indian Banking Sector

Prof. Dr. Jagdeesh Ramchandra Lanjekar
Brihan Maharashtra College of Commerce, Pune
(Email – jrlanjekar@gmail.com)
ABSTRACT:
HR Management is concerned with the development of the efficiency and quality of
human resources to achieve the better performance, quality service and profitability of
the organization.
Adoption of new technologies helps the employees to acquire new skills resulting
in increase in the productivity. Digitalization of Human Resource Management can
bring revolutionary changes and improve the performance of the employees in any type
of organization. Digitalization of HR Management includes the areas like Recruitment,
Selection, Training and Development, Communication, Performance Management,
Payroll Management, Promotion, Rewards and Appraisal System, Employee Self-
Service, Workflow Management, employment branding, etc.
Banking is a service industry and the HR Management in Banks plays a vital role
in the performance of any Bank. Today’s customers demand to provide the services on
their mobile or smart-phone platform. Therefore, banks must be ready for that and they
have to train and equip their employees accordingly to satisfy the customer demand.
This research paper attempts to explore the HR practices and highlights the
importance of digitalization in HR management in Indian Banking sector.
1.2 Objectives
1. To study the present scenario of Human Resource Management in banks.
2. To study in detail the digitalization of Human Resource Management in Indian Banking
Sector.
3. To study the advantages of digitalization of Human Resource Management in banks
4. To give suggestions for the improved use of digitalization of Human Resource
Management in banks.
1.3 Hypothesis
‘Banks which combine effective HR management processes with effective HR
technology can get the better productivity and profitability.’
1.4 Research Methodology
The present research work is based on the data collected through the secondary sources
such as books, journals, websites, Reports, etc.
The collected information has been presented in suitable form to understand the subject
matter. Some information has been presented with the help of charts and tables. Suggestions
based on the analysis and interpretation of data has been given for the digitalization of Human
Resource Management in Banks for better results.
INCON - XI 2016 300

1.5 Indian Scenario
Earlier the banks had only two important functions of accepting deposits and granting
loans and advances. However, today’s banks provide various type of precuts. Today the
number of banks and financial institutions have increased on a large scale and it has become a
complex multi player market with the introduction of specialized banks.
There were total 7,57,535 employees in public sector Banks and 2,18,679 employees in
private sector Banks in India in the year 2010-11. The cost per employee in the public sector
Banks was Rs. 7,15,914/-as compared to that of in private sector Banks was Rs. 5,69,154/-.
The competition in the Banking industry is increasing day by day. The entry of
technologically advanced new generation private sector Banks and the foreign Banks has
created a great challenge before the traditional Indian Bankers. Digitalization is the way which
will transform the Banking industry.
1.6 Human Resource Management
Every organization must have the sound Human Resource Management philosophy
based on the following principles :-
1. Respect the dignity of labour and human diversity
2. Consideration of the value of employee-contribution
3. Commitment to the employee satisfaction, welfare and growth \
4. Employee participation in the management and decision making
5. Equitable and fair sharing of the income and wealth of the organization
1.6.1 HR Policies and Practices
There must be a right system of HR policies and practices regarding the following
elements of Human Resource Management –
1. Recruitment and selection of the employees
2. Training and development
3. Performance appraisal, Quality Circles
4. Compensation and perks
5. Career Planning, Promotion, welfare facilities, transfer, etc.
6. Healthy relations between the Management and Employee,
7. Organization development and management development, etc.
1.7 Digitalization of Human Resource Management
The 21st Century has brought many new challenges before the Management and
organization in all the sectors and Banking sector is no exception to it. Now-a-days, there are
certain challenges regarding human resource management before every bank and these
challenges are due to the factors such as advancement of ICT, emergence of knowledge
economy, global working environment, hyper competitive market, changes in the workforce,
changes in the personal values of the employees, etc. Efficient human resource management is
every much essential to cope with these challenges and succeed in the banking business.
Digitalization of human resource management pays the way for success and many more banks
have successfully started to adopt it.
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1.7.1 Essential features of Digital HRM System
1. The system must be easy to operate and interface, user friendly, speedy and interactive.
2. The system should be such that the integrated data could be used in single window for
multiple functions.
3. It must be cost effective.
4. It must enabled to give immediate response and consistent interface by the authorities
and employees.
5. The technology used in it must be continuously upgraded.
6. It should enable easy contact with the managers, authorities and other employees.
Chart 1.1 HRM Data accession by the stakeholders
Sr. Stakeholders HRM related data to be kept available in digital form for
No. accession
1. Candidates interested Career opportunities and Job openings
inapplying for the job Job Description and Application Form
Company Profile
2. Employees Personal Profile
Organizational Structure and Code of conduct
E-Learning Material
Skill development activities and Training Schedule
Perks, Welfare activates and facilities available
3. Managers Corporate Governance
Key Factors in Decision-Making
Execution of H R Policies and Practices
4. Executive Officers Succession Planning and Planning of HR
Cost and Profit per employee
Attrition Rate
5. Board of Directors Workers Participation in Management
Facilitation for the best performances
Fixation of HR Policies and Practices
1.7.2 Essential elements of Digital Human Resource Management System

I. Essential elements of Digital Recruitment
(1) Interactive and user friendly website
(2) Reaching out up to the suitable candidates
(3) Information about company and work environment
(4) Use of different methods of Recruitment
(5) Maintenance of HR Diversity
II. Essential Elements of Digital Selection
1. Selection of the workers who have work-knowledge, skills and abilities.
2. Accuracy in online Tests
INCON - XI 2016 302

3. Standardized web-based training
4. Steps to filter up the unsuitable candidates.
5. Continuous improvement in the selection techniques.
6. Alignment of specific duties to the employees with certain skills and capabilities
III. Essential Elements of Digital Learning
1. Development of Learning Communities
2. Employee-Management interactions
3. Blended Learning (Mix of various E-Learning methodologies)
4. Easy to read and understand Material
5. Practical implications of the theory containts.
6. Conducive online environment
IV. Essential Elements of Digital Performance Management
1. Setting of Performance Standards
2. Performance expectations by the management and rewards
3. Display of the measured performance of each employee
4. Data collection with the help of Employees
5. Performance improvement through the continuous interaction with the employee
6. Suitable methods to examine the behavioral pattern of each and every employee.
7. Use of different methods or mix of various performance appraisal methods
8. SWOC Analysis of each employee
9. Rewards to the employees for the best performances
10. Reporting of the deficiencies to the concerned employees and guiding them for the
improvement after taking them into confidence
V. Essential Elements of Digital Compensation
1. Compensation based on the performance of the employees
2. Fair and effective compensation Plans
3. Consultancy and guidance about the Investment and Retirement Planning
4. Attractive perks and packages to attract and retain available best HR.
VI. Essential Elements of Digital Fringe Benefits
1. Availability of perks and various other facilities to induce the employees for giving their
best performance.
2. Detailed information about all the benefits available for the employees, Mangers and
authorities
3. Proper administration of employee benefits
4. Easy access to the information about the perks and fringe benefits
5. Reducing and controlling the cost to deliver the benefits.
6. Encouragement and empowerment to the employees to avail and access their own
benefits.
1.8 HRM in Banking Sector
Effective management of Human resources is an essential factor for the successful
banking business. Banks can function efficiently and effectively only with the help of
developed human resources which are ready to adapt to any kind of change.
INCON - XI 2016 303

Human Resource Management in Banks is more sensitive, personalized and context
dependent as compared to the other functional areas of management. People can not be
managed exactly as per the set of predefined techniques. It should not be considered only as a
supporting activity, but it has to be considered as a strategic tool to gain the competitive
advantage in the banking business. Customer satisfaction is the precondition for the success in
the banking business and it depends on the employee satisfaction. Satisfied employees can
keep their customers satisfied in a better way.
Following table shows the data on staff expenses (Payments to and Provisions for
employees) of Public sector and Private sector banks in India
Table No. 1 Staff Expenses in Public and Private sector Banks
Year Public Sector Banks Private Sector Banks
Staff Cost per Employee Staff Cost per Employee
(Rs.) (Rs.)
1998-99 8,83,648 1,67,940 60,777 1,69,307
2002-03 7,57,251 2,70,426 59,374 3,54,532
2006-07 7,28,878 3,81,449 1,37,284 3,83,439
2010-11 7,57,535 7,15,914 2,18,679 5,63,154
(Source: RBI Report, June 2012)
The above table shows that the number of employees in public sector banks is reducing
year by year and their cost per employee is increasing enormously, on the contrary, the
number of staff in private sector banks is increasing and their cost per employee is going down
year by year. It shows that public sector banks are no longer employment provider and their
staff expenses are more than 150% higher than that of private sector banks. The main reason
behind it is that the private sector banks as more techno savvy as compared to the public sector
banks.
1.9 HR Challenges faced by the Banks
1. Following are the challenges related to human resources faced by the banking industry :-
2. Conversation of huge manpower into the useful human resource
3. Training and skill development of the available human resources to suit the requirement
of the industry.
4. Encouragement and motivation to work better and to be loyal to the organization
5. Increasing the belongingness to reduce the rate of attrition
6. Building competitive advantage over the foreign competitors.
7. Reduction in the expenditure on HR without affecting the productivity and quality
8. Reduction in the size of HR by removing the non-performing employees
9. Creation of multicultural environment in case of HR with different originalities.
1.10 Digitalization of HRM In Indian Banking Sector
IT revolutions have brought new technologies in various aspects of life. It has made our
life comfortable. Modern technology has been introduced in manufacturing as well as service
a sector and banking sector is no exception to it. Banking sector has been making huge
investment in the adoption of new technology for the survival and growth in today’s global
INCON - XI 2016 304

competitive environment. Use of modern technology has helped Banks to improve their
customer service in day to day business with easy and speedy product delivery, lower the cost
and to increase the profitability. Core Banking, ATM, Internet Banking, Mobile Banking, etc.
are just few example of IT becoming an integral part of Banking business.
The stages in the evolution of technological development in the Banking sector in India
can be stated as follows:-
Chart No. 1.2 Technological Development in Indian Banks
Year Details
1960 Introduction of Mechanized Banking
1966 Use of Accounting machines manufactured by IBM for inter-branch reconciliation
1970 Introduction of Computer software useful for banking industry
1980 Beginning of computer-linked communication between the banks
1983 Installation of Advanced Ledger Posting Machines (ALPM)
1984 Use of MICR cheques in banks to have standardized forms and encoders
1988 Committee Recommendations for computer based clearing and settlement
1989 Committee Recommendations for computerization and branch connectivity through
P.C.s
1993 Computerization started in banks as per the agreement between IBA and Bank
Employees’ Association
1994 Recommendation of Saraf Committee to use EFT (Electronic Fund Transfer),
Electronic Clearing Services and extension of the use of MICR cheques in all banks
2000 Information Technology Act. Creation, transmission and retention of electronic data to
be treated as valid proof in the court of law.
2001 RBI Guideline on Internet Banking, Mobile Banking, Prepaid (stored) value cards, etc.
2002 Use of RTGS and NEFT for speedy transfer of funds
Use of Information Technology is improving the efficiency and effectiveness of the
banking services. Use of ICT in banking business has enabled the banks to automate the wide
range of activities performed by the employees and the internal stake-holders can have easy
poin-of-access.
Chart No. 1.3 Digital Transformation of Retail Banking in India
Year Stage Details
1980- Digitalization of Replaced paper-based payments
2000 Payments Cost saving technologies such as ATM, Cards, Tele-
banking,etc.
Reach up to more number of customers
2000- Digitalization of Banks access 24/7 remotely by customers
2010 basic Banking Bulk of low value added activities
Convenience to customers and cost effectiveness to banks
2010- Digitalization with Digitalization of Sales and after-sales service
2015 Human Touch Face to face interaction or more complex service
2015 Radical change in Branch networks transformed into sales and advice outlets
INCON - XI 2016 305

onwards distribution mix Sales start with an online enquiry or investigation
Calls Centers will be profitable, professional channels
Multichannel processes for more tailored customer services
Digitalization in banking sector is truly changing the face of banking business. Constant
technological advancement has enabled the automation and digitization of the work and the
ways of getting things done.
There is a huge impact of digitalization on the HR functions such as Recruitment,
Training & Development, Performance Management, Payroll, Employee Self-Service,
Workflow management, etc. Majority of the administrative tasks associated with HR have
been automated. Therefore, modern HR professionals must be more strategic, proactive and
technically trained to improve their performance to suit the requirement of the posts.
Indian banks are converting their HR functions into e-HR functions online through
intranet.
Table No. 1.2 : Digitization in HR Functions
Sr. HR Function Digital Equipments, Tools, Name of the Bank and the
No. Software, etc. related to the HR name of it’s software
Function
1. Recruitment Internet Job Boards, Resume Many banks perform the
and Selection Databases and Applicant Tracking recruitment and selection
Technology, Online Testing and function online with the
Assessments, or combined internet and website
technologies
2. Training & Tata Interactive Systems (TIS) – State Bank of India’s
Development custom e-learning Gyanodaya E-Learning
Gateway
3. Performance Infosys BPO’s ‘Performagic’ – Bank of Baroda’s HRNes
Management online appraisal tool (Human Resource Network for
Employee Services)
4. Payroll L & T Infotech SAAS Payroll - Punjab National Bank’s Payroll
Management Payfast TPS6 (Transaction Processing
System)
5. Employee Self- Employee Self-Service Portal of Café HR for ABB Employees
Service Telecommunication Consultants
India Ltd.
6. Workflow Smart-stream and workflow by D & New Business and
Management B Software Underwriting automation
Solution of Canara HSBC
(IBM FileNet)
(Source – www.ircjournals.org)
1.11 Advantages of Digitalization of HR in Banks
1. Digitalization increases the speed, improves the quality and reduces the cost of the
service.
INCON - XI 2016 306

2. Wider use of It and automation reduces the number of employees and the cost of
managing of these employees, i.e. the administration and compliance costs.
3. HR Digitalization streamlines HR Process and reduces the burden of administration.
4. Digitalization of HR increases the competencies and the HR becomes globally
competent.
5. Digitalization improves the quality of service and access to the data and information for
the managers as well as the employees.
6. The top management can understand the trends in the HR market and it can manage the
workforce more effectively and efficiently.
7. HR is enabled to become more strategic in the business.
1.12 Suggestions
1. Top management of the banks have to think and take action about innovation and
experimentation for better customer service with lower cost.
2. The regulatory institutions like RBI must update the rules and regulations to keep pace
with the changing environment in the banking business.
3. Even though the banks are using modern technology to speed up the customer services
and to lower the cost, they have to take care about the human touch while providing the
customer service. Each bank must give importance to human interaction in the form of
consultancy, advice, etc.
4. Banks must retain it’s skilled staff to provide the more specialist services.
5. The transformation from old-fashioned bricks and mortar bank to a modern, digital bank
is necessary to keep pace with the changing environment.
6. For getting success in digital era, the bank staff and managers must acquire special
proactive skills and adopt the strong performance management disciplines.
7. Banks must attend the customers grievance properly. Banks should check their ranking
and rating by customers through the way of search engine.
8. Digital Bank with human face concept requires the IT capacity and effectiveness of the
customer service, organizational and governance change as well as the cultural change in
the working environment.
9. Banks have to organize the training sessions continuously to the employees regarding
use of digital instruments and equipments to increase the level of their performance.
10. Technology support must be provided to the HR functions to make the bank globally
competent. The e-HRM tools such as LAN (Local Area Network), Intranets, Portal, e-
mails, video conferencing, dynamic websites, social networking sites, etc. must be made
available to the employees at the time of delivery of services.
11. The IT oriented human resources must keep human touch in their working giving more
importance to human relations than the profit.
12. Delivery of HR service using web-based technology is the need of today. The HR
professional have to master their traditional HR skills. They also must have the ability to
apply the same with the help of modern technology.
INCON - XI 2016 307

1.13 Conclusion
Top management should try to use human resource as their strategic partner in achieving
their business goals. The HR professionals must have mastery over traditional HR skills and
the ability to apply the technology in managing the human resources for their better
performance and ultimately the progress of the organization.
Both the top Management and Trade Unions must come together to think over the HR
challenges faced by Banking sector. They should motivate the employees to adopt the digital
technology in their work for the cost effective performance of better results of the
organization.
In short, digitalization in HR Management is essential for improving the communication
between the stakeholders, customer service and protection, employee supervision and their
efficiency and effectiveness for the better Banking business.
REFERENCES :
(I) Articles
[1] Dr. N. Ramu, ‘Human Resource Management in Co-operative Banks in India : Issues
and Challenges’, CAB CALLING, July-September, 2008
[2] Md. Tofael Hossain Majamder, ‘Human Resource Management Practices and
Employees’ Satisfaction Towards Private Banking Sector in Bangladesh’, International
Review of Management and Marketing, Vol. 2, No. 1, 2012, pp.52-58, ISSN : 2146-
4405 (www.econjournals.com)
[3] Shilpi Singh, ‘Face of HR Practices in today’s scenario in Indian Banks’, International
Journal of Application or Innovation in Engineering & Management, Volume 2, Issue 1,
January, 2013
[4] Bhagawan Chandra Sinha and Dr. Mruidula Mishra, ‘ E-HRM Tooks : An Empirical
Study in select Indian Orgnizations’, International Journal of Business and Management
Invention’, Volume 3, Issue 9, September, 2014 PP.71-83
[5] Dr. Harsh Sharma and Prof. Sneha Shukla, ‘Human Resource Management in Digital
Age : Trends in Indian Corporate HR Practices’, IRC’s International Journal of
Multidisciplinary Research in Social and Management Sciences’, Volume 1, Issue – 3,
July – September, 2013
[6] Richard D. Johnson and Hal G. Gueutal, ‘ Transforming HR Through Technology’,
SHRM Foundation’s Effective Practice Guidelines Series Publication
(II) Reports
[1] Retail Bank Distribution 2015 – full digitalization with a human touch
(www.mckinsey.com)

INCON - XI 2016 308

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ASM’s International E-Journal on ‘Ongoing

Research in Management & IT’

HUMAN RESOURCE MANAGEMENT

ASM Group of Institutes, Pune- 411018

INCON “International conference on Ongoing Research in Management and IT” is an

Dr. Asha Pachpande

Dr. Sandeep Pachpande Chairman, Audyogik Shikshan Mandal

Dr. Santosh Dastane Director Research, ASM Group of Institutes

Dr. S. B. Mathur Director General, ASM’s IIBR

Dr. Sudhakar Bokephode Director, ASM’s IPS

Dr. G.B. Patil Dean, ASM’s IPS

Dr. Nandkumar Khachane Director , ASM’s IIBR

Dr. K. C. Goyal Professor, ASM’s IIBR

Dr. J. N. Shah Director, ASM’s IMCOST

Prof. Ashish Dixit Director, ASM’s ICS

Dr. Dhananjay Bagul Principal, ASM’s CSIT

Dr. Nirmala K Director MCA, ASM’s IBMR

Dr. Priti Pachpande Associate Professor, ASM’s IBMR

1 Innovative Quality Indicators of Faculty of Ravi Nath Kumar 1 to 8

2 Study on Best Talent Management Practices Dr. (Mrs) Asha Pachpande 9 to 19

3 H R Challenges & Strategies of 21st Century Dr Ashok Verma 20 to 26

4 Managing Human Resources in Small & Prof: Sangita Solanke 27 to 33

5 Emerging Engagement Models for Employees Prof Shakti Marhatta 34 to 40

6 Negaholics At Workplace And Toxic Culture Mrs. Vidya Khachane 41 to 48

7 Role & Challenges for HR in Retail Industry in Swati Manoj Yeole 49 to 55

8 Study on Recruitment through Social Media Miss. Shraddha Prakash 56 to 64

9 Leadership Development And Succession Yogini Kulkarni 65 to 76

10 To Study the Industrial Relation in the Prof. Bhushan Pednekar 77 to 83

12 “Study of the Need of 'Emotional Intelligence' Prof. Eapen Thomas 93 to 99

14 A Study on Soft-Skills Training and Cultural Dr. D. B. Bagul 106 to 114

16 Talent Management: A Linking Pin To Ms. Gazal Yadav 126 to 131

17 Quality of Work -life as Corporate Ms. Trupti Shelk 132 to 135

20 Socialism At Work Place – Advocate - Dr. Ruby 152 to 160

21 A Study of Women Workers in selected Fruit Rupesh G. Sawant 161 to 170

24 Training & Development Process Ms. Pallavi P. Kulkarni 193 to 198

25 A Study of Human Resource Management Prof. Kalpana Lodha 199 to 217

27 Gender Diversity A Shift in Paradigm: Ms. Deepti Sharma 226 to 230

30 Effect of Organizational and Occupational Mr. Swapnil Undale 251 to 259

34 Significance of Competencies for Organization Ankush Puri 281 to 284

35 The Role Of Competency Mapping In Prof. Mrunal Belsare 285 to 295

36 A study on Work-Life Balance in Working Ms. Shital H. Rathod 296 to 299

37 Digitalization of Human Resource Prof. Dr. Jagdeesh 300 to 308

Innovative Quality Indicators of Faculty of Management Institutions : A

To a Great To a Large To Moderate To Some Not at

To a Great To a Large To Moderate To Some Not at

Study on Best Talent Management Practices of Selected Foreign MNC’S in

H R Challenges & Strategies of 21st Century in Indian Power Generation

Fig.1.2: Strategies to meet the HR challenge posed by Globalization:

Managing Human Resources in Small & Emerging Organizations

Emerging Engagement Models for Employees in IT and ITES Companies

© 2013 Modern Survey, Inc. All rights reserved. | http://www.modernsurvey.com/mailers/fall-

Most effective retention initiatives by generation

4. Scope of the Study

Negaholics At Workplace And Toxic Culture Within Organization With

Fig 1 : Types of Negaholics

Role & Challenges for HR in Retail Industry in Indian Context

Study on Recruitment through Social Media Networking Sites

 Calculation of statistics of effective social site for recruitment.

 Calculation of statistics for knowing the effectiveness of social site in recruitment.

Findings and Suggestion

Leadership Development And Succession Planning In Manufacturing

To Study the Industrial Relation in the Context of Changing Business

10 Equal pay for equal work 4 6 5 33 43 4.15