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3. This study deals about traditional measures of training and development programs and there

are no dealings about other practices like recruitment and selection practices, rewards and

incentives etc., HRD climate and HRD outcomes.

4. This study reveals performance management in the organization and there is no any

performance.

5. This study mainly focuses on measurement on traditional HR measures and not a business

impact measures.

6. The study reveals permanent and temporary employees in public sector & non-profit

organization but not in the private sector employees.

8. The study indicates a large inter-organization difference in HRD practices and its climate and

does not give any importance on impact measures.

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INDUSTRY PORFILE

INTRODUCTION

The automotive industry in India is one of the larger markets in the world. It had

previously been one of the fastest growing globally, but is currently experiencing flat or negative

growth rates. India's passenger car and commercial vehicle manufacturing industry are the sixth

largest in the world, with an annual production of more than 3.9 million units in 2011. According

to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer

in the world grew 16 to 18 percent to sell around three million units in the course of 2011 and

2012. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan,

South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter

of passenger cars.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million

automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country

the second (after China) fastest growing automobile market in the world in that year. The

majority of India's car manufacturing industry is based around three clusters in the south, west

and north. The southern cluster consisting of Chennai is the biggest with 35% of the revenue

share. The western hub near Mumbai and Pune contributes to 33% of the market and the

northern cluster around the National Capital Region contributes 32%. Chennai, with the India

operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler,

Caparo, and PSA Peugeot Citroën is about to begin their operations by 2014. Chennai accounts

for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern

cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan

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corridor near Pune, Maharashtra is the western cluster with companies like General Motors,

Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar

Cars, Fiat and Force Motors having assembly plants in the area. Nashik has a major base of

Mahindra and Mahindra with a SUV assembly unit and an Engine assembly unit. Aurangabad

with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging

cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and

further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-Citroen

plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and

Bangalore with Toyota are some of the other automotive manufacturing regions around the

country.

In 2011, there were 3,695 factories producing automotive parts in all of India. The average firm

made US$6 million in annual revenue with profits close to US$400 thousand.

LIBERALIZATION

Eventually multinational automakers, such as, though not limited to, Suzuki and Toyota

of Japan and Hyundai of South Korea, were allowed to invest in the Indian market ultimately

leading to the establishment of an automotive industry in India. Maruti Suzuki was the first, and

the most successful of these new entries, and in part the result of government policies to promote

the automotive industry beginning in the 1980s. As India began to liberalise their automobile

market in 1991, a number of foreign firms also initiated joint ventures with existing Indian

companies. The variety of options available to the consumer began to multiply in the nineties,

whereas before there had usually only been one option in each price class. By 2000, there were

12 large automotive companies in the Indian market, most of them offshoots of global

68

companies. Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets

and neighboring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe

(Hungary). After some growth in the mid-nineties, exports once again began to drop as the

outmoded platforms handed down to Indian manufacturers by multinationals were not

competitive. This was not to last, and today India manufactures low-priced cars for markets

across the globe. As of 18 March 2013 global brands such as Proton Holdings, PSA Group, and

Geely Holding Group are shelving plans for India due to the global economic crisis.

EXPORTS

India's automobile exports have grown consistently and reached $4.5 billion in 2009,

with the United Kingdom being India's largest export market, followed by Italy, Germany,

Netherlands and South Africa. India's automobile exports are expected to cross $12 billion by

2014.

In 2008, South Korean multinational Hyundai Motors alone exported 240,000 cars made

in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.

Similarly, US automobile company, General Motors announced its plans to export about 50,000

cars manufactured in India by 2011. In July 2010, The Economic Times reported that PSA

Peugeot Citroën was planning to re-enter the Indian market and open a production plant in

Andhra Pradesh with an annual capacity of 100,000 vehicles, investing EUR 700M in the

operation. PSA's intention to utilize this production facility for export purposes, however

remains unclear as of December 2010. In 2009 India (0.23m) surpassed China (0.16m) as Asia's

fourth largest exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by

allowing foreign carmakers 100% ownership of factories in India, which China does not allow.

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On September 2009, Ford Motors announced its plans to set up a plant in India with an

annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the

Indian market and for export. The company said that the plant was a part of its plan to make

India the hub for its global production business. Fiat Motors also announced that it would source

more than US$1 billion worth auto components from India.

In recent years, India has emerged as a leading center for the manufacture of small cars.

Hyundai, the biggest exporter of the country, is now shipping more than 250,000 cars annually

from India. Apart from Maruti Exports' shipments to Suzuki's other markets, Maruti Suzuki also

manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small

cars from its new Indian assembly line. Tata Motors export its passenger vehicles to Asian and

African markets, and is in preparation to launch electric vehicles in Europe in 2010. The firm is

also planning to launch an electric version of its low-cost car, the Tata Nano in Europe and in the

U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV models in

the U.S. market. Bajaj Auto is designing a low-cost car for Renault Nissan Automotive India,

which will market the product worldwide. Renault Nissan may also join domestic commercial

vehicle manufacturer Ashok Leyland in another small car project. While the possibilities are

impressive, there are challenges that could thwart future growth of the Indian automobile

industry. Since the demand for automobiles in recent years is directly linked to overall economic

expansion and rising personal incomes, industry growth will slow if the economy weakens.

AUTOMOBILE INDUSTRIES IN TAMIL NADU

In the year 2008, Tamil Nadu had over 16 million 2 and 4-wheeled vehicle

registrations. The 4-wheeler vehicles in Chennai is the base of 30% of India's automobile

70

industry and 35% of its automobile component industry. Chennai is the fourth

largest metropolitan city of the country.

A Heavy Vehicles Factory is also established in Avadi (23 km Northwest of Chennai) in

collaboration with Russia to produce military related vehicles. Avadi also boasts of Combat

Vehicle Research & Development Establishment (CVRDE), a new engine testing facility.

Nissan and Ashok Leyland formed a Joint Venture to set up a Light Commercial Vehicle

(LCV) plant at Pillaipakkam, 40 km from Chennai.

A state-of-the-art assembly plant for BMW 3 and 5 Series started operation in early 2007

in Chennai. Construction of the plant started in January 2006 with an initial investment of more

than one billion Indian Rupees. The plant started operation in the first quarter of 2007.

Daimler is establishing a plant in Oragadam, Chennai to produce trucks to cater to Indian

Markets. The plant will have an initial production capacity of 36,000 vehicles a year. The plant

started operation in the second quarter of 2012. The integration of Daimler Buses, India into

DICV took place on 1 April 2013. Construction work of Daimler Buses, India is yet to start in

2014. Start of production is expected to be by the year of 2015.

Ford entered India in collaboration with Mahindra & Mahindra in 1995 with a plant in

Tamil Nadu. The first model was the Escort. In 2009, Ford invested $500 million to increase its

capacity to 200,000 cars per annum. And Hindustan Motors has a plant in Tiruvallur, Chennai.

Mitsubishi entered India in 1998 as a part of its global expansion program. It has a

manufacturing facility in Chennai with technical collaboration with Hindustan Motors.

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Mitsubishi's plant in Chennai currently has a capacity of 6,000 cars per annum, which will

increase to 24,000 cars per annum in a few years.

Nissan entered India in 2005. It is currently being set up a full-scale manufacturing plant

inOragadam situated about 45 km from Chennai. The plant will have a capacity of 200,000 cars

per annum. It plans to introduce 9 new models in India in the coming months, including its small

car Micra.

Renault entered India in 2007 in a Joint venture with Mahindra. It is currently being set

up a full-scale manufacturing plant in Oragadam situated about 45 km from Chennai. The plant

will have a capacity of 200,000 cars per annum. It plans to introduce many new models in India,

particularly to attract small car buyers.

Thus the above are the top manufacturing industries available in TamilNadu which produces

variety of vehicles.

SPECIFIC INDUSTRY PRROFILE IN CHENNAI

The following are the few automobile manufacturing companies chosen by the

researcher. They are Ashok Leyland, Mahindra and Hyundai.

Ashok Leyland is a commercial vehicle manufacturing company based in Chennai, India.

In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars.

The Company's name changed soon with equity participation by British Leyland and Ashok

Leyland commenced manufacture of commercial vehicles in 1955. Ashok Leyland has six

manufacturing plants: a plant at Ennore near Chennai, two plants at Hosur (called Hosur I and

Hosur II, along with a press shop), and the assembly plants at Alwar and Bhandara.

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Mahindra and Mahindra limited (M&M) is an Indian automobile manufacturing

corporation head quarter in Mumbai, Maharashtra and India. It is one of the largest vehicle

manufacturers by production in India and the largest seller of tractors across the world. It has

vehicle and automobile plant located in Chennai. It is a part of Mahindra group and Indian

conglomerate. It was ranked as a tenth most trusted brand in India by The Brand Trust report,

India study 2014. It was ranked 21st in the list of top companies of India 500 in 2011.

Hyundai entered India in 1996 and in 1998 launched Santro, back in 1998 the Santro's

original arch rival was the Maruti Zen, the Hyundai brand was virtually unknown in the Indian

market. But now Hyundai has good market share primarily because of its entry-level small cars

Santro and i10. Along with its plant in Sriperumbudur, it sets up a second plant, thereby raising

its total capacity to 600,000 cars per annum.

CONCEPTUAL FRAMEWORK

The term human resources spell the total sum of all the components (like skill, creative

abilities) possessed by all employees and other persons (like self employed, employees, owners

etc.) who contribute their services to attain the organizational objectives and goals. Human

resource also includes human values, ethos etc.

Definition:

Human resource management is concerned with the people who work in the organization

to achieve the objectives of the organization. It concerns with acquisition of appropriate human

resources, developing their skills and competencies, motivating them for best performance and

ensuring their continued commitment to the organization to achieve organizational objectives.

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This definition applies to all types of organization, business, government, education, health or

social welfare of the people.

Human Resource Development:

Human resource development is a system of developing in a continuous and planned way

the competencies of individual employees, dyadic groups (superior and subordinates) teams and

the total organization to achieve organizational goals. It maximizes the congruence between the

individual and organizational goals of employees and develop an organizational culture in which

superior-subordinate relationships, teamwork and collaboration among various units become

strong and contribute to the professional well-being, motivation and pride of employees. Thus

understood HRD denoted the culmination of the growth of the well-known human relations

school management, which began over seven decades ago on the basic premise that the

fulfillment of an organization

the fulfillment of its people goals. The following HRD chart explains the development of

individual and organizational performance.

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Figure 3.1: HRD System

To improve

Source: Dr. V. Balu, Human resource management, Hand Book.

HRD

Facilitates & focuses on

Growth & development of individuals Growth & development of organization

by by

Developing capabilities in individuals capabilities

for for

Optimum & effective utilization of human & organizational resources

Improved performance & job satisfaction

Organizational strengths & potential through focused collaboration

for

Mutual Prosperity

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The above diagram clearly segments HRD and its multifarious interventions over an

organization. The main focus of HRD is to facilitate simultaneously growth and development of

individual employees and their organization. This attempt would develop the capabilities and

potentials of individual employees into their performance and offer them the satisfaction of their

job. At the organization levels, it would review the poor capability of the organization and the

efficiency in optimizing the effective utilizing of human resources. This approach leads to

organizational strength; productivity increase and profitability, increase and also offer mutual

prosperity to the employees & organization.

Human resources are one of the most vital assets of an organization. It is the people who

make other resources, moving; they perform various activities in different functional areas like

production, marketing, finance, etc. The following are the elements or factors of HR Practices.

They are Organizational development, Performance appraisal, Rewards and incentives,

Recruitment and selection, Career development, Executive development, Goal setting,

Interpersonal relationship, Training and development, Management policies, Potential appraisal,

Job rotation.

ORGANIZATIONAL DEVELOPMENT

Organizational development aims at the overall improvement of the employees as well as

their skills in a conducive work environment. Since all HR practices focus on increasing

organization organization develops as its analogy

with HR practices and also become one of the important elements of HR practices.

Organization development is a response to change a complex

educational strategy intended to change the beliefs, attitudes, values and structure of the

76

organization so that they can better adapt to new technologies, markets and challenges and the

Process of Organization Development:

Organization development can be taken as a process of changing people and other related

aspects of an organization. Thus, it consists of many sub processes or steps. However, theorists

and practitioners both differ about the various steps and their sequence in OD. This is because

most of the ideas in OD are generated from practices and these practices have differed from

organization to organization. It is not necessary that each organization may involve all the steps

with the same results from OD strategy. As such, uniformity in the steps involved cannot be

expected. Moreover, since OD is an ongoing interactive process - a process is an identical flow

of interrelated events moving over time towards some goal many of the events overlap, and in

real practice, a clear-cut demarcation between various events becomes difficult. In OD programs,

various steps may be problem identification and diagnosis, planning change strategy, intervening

in the system, and evaluation. These steps are not exclusive to each other and do not follow the

same sequence but interact with each other. The following diagram explains the stages or process

of organizational development. Figure 3.2: Stages of Organisation Development

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Source: L.M. Prasad, Human Resource Management, Hand Book.

The above diagram clearly explains the process of organizational development. Initial

Diagnosis which diagnoses the problems and to prepare the OD programs. Data collection which

deals with the data necessary for determining the organizational climate and identifying the

behavioral problems can be collected by means of the survey method. Data analysis and review,

which provides steps to analyze and review the same. Preparation of action plans which gives the

necessary action plans to solve the specific problems identified. Interventions, the structured

activities designed to help individuals and groups improved their work effectiveness. Evaluation

and follows up, at this stage; the results of the OD program are evaluated.

The Organization development and workplace learning help to achieve effective human

resource development outcomes. The learning process in the organization involves a two-way

1 - Diagnosis

2 - Data collection

3 - Data analysis and

review

4 - Action plans

5 -Interventions

6 - Evaluation and follow -

up

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diffusion of knowledge between the organization and individuals. The management of a large

organization influences the capability of the organization and relates that to the work-based

learning of the individual members of the organization. The role of a manager is to use the

organization to deliver certain work outcomes and the capability of the organization to deliver

those outcomes is a key concern of manager.

The organization makes heavy use of job rotation to develop organizational capability

and organizational capability can quickly be changed by placing different people in key

positions. Organizational performance is mostly depends on HRM outcomes such as employees

attitudes and behaviours. Work base learning outcomes thus become very important because the

organization has to monitor that the required behaviour is achieved.

Organization development is a useful process. Its chief advantage is that it tries to deal

with changes in a whole organization or a major unit of it. In this manner it accomplishes more

widely dispersed improvement other benefits include improved motivation, productivity, quality

of work, job satisfaction, teamwork and resolution of conflict negative factors such as absences

and turnover also are reduced.

PERFORMANCE APPRAISAL

Performance appraisal is one of the most valuable human resource tools. It is a vital

component in recruiting and hiring employees, where it is used to validate selection tests, and in

staffing, where transfer, layoff, termination, or promotion decisions are made on the basis of

appraisal results. It is one of the most complex and controversial human resource technique. The

performance appraisal is the process of assessing the performance and progress of an employee

or of a group of employees on a given job and his potential for future development.

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According to Andrew ystematic, periodic, and an

Armstrong (2012), performance management can be defined as a systematic process for

improving organizational performance by developing the performance of individuals and teams.

Performance appraisals can be defined as the formal assessment and rating of individuals by their

managers. Performance management is the system through which organizations set work goals,

determine performance standards, assign and evaluate work, provide performance feedback,

determine training and development needs and distribute rewards (Briscoe & Claus, 2008). The

most common appraisal methods are checklists and rating scales. Narrative methods require a

description of the work performance of an employee by a manager; they include the essay or free

narration method, the critical/key incident method and the confidential report. The group of

behavioural methods covers the BARS method (Bogardus, 2007)

Appraisal participation provides employees with a voice in the appraisal process. With

the presence of employee participation, employees are empowered to rebut ratings,

documentation or verbal feedback that they disagree with. It derives from the assumption that

employees possess valid, unique and relevant performance information and insight that is

unavailable or unobservable by the rater. Thus, when employees participate in the appraisal

process, the quality and quantity of performance appraisal information increases, leading to a

more accurate and valid rating.

over the process and manifest ego involvement as the rate manifests a stake in the success of the

system, enhancing employee acceptance. Employees frequently set higher performance goals

80

than management when they possess the requisite level of autonomy, authority and resource

support. The important element is that greater employee participation generates an atmosphere of

cooperation and employee support, which encourages the development of a coaching or

counseling relationship, thereby reducing appraisal related tension, defensive behavior and rater-

ratee conflict.

Performance appraisal impacts upon many aspects of management and enhances

employee related decision making: it may be linked to: discipline policies, probationary reviews;

promotion; redeployment; redundancies; reward packages; and, the foundation for training

evaluation. Appraisal systems provide a multi-dimensional means of systematically evaluating

employee performance (Cable and Judge, 1996).

It is clear that performance appraisal continues to present a varying human resource

challenge. When employees possess a meaningful role in the appraisal process, employee

acceptance and satisfaction with the appraisal process is strongly enhanced.

Performance Appraisal Effectiveness:

The following measures may be adopted to make performance appraisal effective: There

must be criteria for performance appraisal; should ensure consistency in assessment; capacity to

judge the subordinates; main focus on job performance of the subordinates and related issues;

appraisal of sub ordinates performance must be undertaken at regular intervals; the result of

appraisal must be communicated to the subordinate of the right time; the superior must also tell

them the ways and means to improve their performance; incentives must be given to the

subordinates who have performed really well; performance appraisal is meaningful only if

certain important decisions like employee promotion, transfer etc are linked to their job

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performance; For the appraisal of employees to be successful it is important that there is trust and

confidence between the superiors and subordinates.

REWARDS AND INCENTIVES

Reward management is a key function in HRM systems in modern enterprises, playing an

important role in attracting, retaining and motivating employees (Milkovich and Newman, 2004).

Kaya (2006), interested in researching the intersection between human resource management

(HRM) and entrepreneurship has increased. In fact, some studies highlight the role of HRM as an

effective facilitator for innovation and as a dimension of entrepreneurship (Wang and Zang,

2005). Yuzhou, 2011 sets out to empirically explore the relationship between HRM and

innovation, particularly between reward management and employee creativity in the workplace.

Since any object that is able to satisfy employee needs is known as incentive, the scope of

the incentive is quite broad. It may include base compensation along with other monetary

payments to employees as well as the nature of the job that they perform and the context in

which they perform the job. Thus, incentives may be of a financial nature as well as of non-

financial nature, though more emphasis is placed on financial aspects. An incentive is most

frequently built on monetary rewards, but may also include a variety of non-monetary rewards or

prizes.

Financial incentives are in direct monetary form or measurable in monetary worth that

are provided to employees to motivate them for better performance. Incentives include all those

payments to employees, which are in addition to their base pay. Such payments enhance an

-being.

82

Financial incentives may be for operatives as well as for managerial personnel. These

incentives may be classified as an individual or group basis. Individual incentives link

him, which may vary among individuals

depending on their outputs. These are known as output-linked incentives. Group incentives are

linked to the group performance and all members shares equal rewards irrespective of their

individual outputs. Some common forms of such incentives are a bonus, Scanlon plan, profit

sharing, and co-partnership.

The reward system is based on the net profit for several reasons. First, it encourages the

salesperson to sell close to the retail price of the vehicle therefore resist the attempt of the

customer to negotiate a lower price. This also encourages the salesperson to aggressively push

the after sales products and services, such as extended warranty, paint protection coating, CD

changer, etc. Those products and services carry a large profit margin for the dealership.

Michele Marchetti (1997), it indicates that salespeople, despite their market

specialization, want money or cash as an incentive. In his other research (1998) points out that

commission encourages salespeople to pursue new business aggressively. Types of

compensation set by a dealership will determine the types of salespeople it attracts and repels

(Sawyers, 1997).

The relationship between human resource management (HRM) and innovation,

particularly between the utilitarianism and romantism reward approach and employee creativity

in the workplace. Extrinsic rewards are necessary to encourage the innovative behaviour of

employees. Excessive extrinsic rewards, however, may depress the behaviour by eroding self-

motivation. A series of intrinsic rewards emphasizing clear innovation orientation, flexible

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empowerment, recognition, learning support and the comprehensive development of human

capital have a substantially robust effect on promoting innovative behaviour.

RECRUITMENT AND SELECTION

Recruitment and selection is one the most important functions of human resource

management (HRM). Recruitment is a process or a series of activities rather than a single act or

event. Recruitment process generally begins when the human resource development receives

acquisitions for recruitment from any department of the company. The human resource

requisition contains details about the position to be filled, the number of persons to be recruited,

the duties to be performed, qualifications required from the candidate terms and conditions of

employment and the time by which the person should be available for appointment.

Budhwar (2007) also found that recruitment and selection were positively related to all

organizational performance variables such as effectiveness, efficiency, innovation, and quality.

Griffen (2006) explained management as a process of managing the resources of the

organization. Armstrong (2009) suggests that the overall aim of the recruitment and selection

process should be to obtain at minimum cost, the number and quality of employees required to

satisfy the human resource needs of the organization. Recruitment and selection extends to

attracting suitable candidates, eliminating unsuitable candidates and converting the successful

candidates to an effective employee (Pilbeam and Corbridge, 2002).

Recruitment Process:

Recruitment is a process consisting of various activities, through which search of

prospective personnel-both in quantity and quality-as indicated by human resource planning and

job description and job specification is made. This process includes recruitment planning,

84

identification of recruitment sources, contacting those sources, and receiving applications from

prospective employees. These applications are then passed on to the selection process. The

following chart indicates the process of recruitment. Figure 3.3: Recruitment Process

Source: C. B. Gupta, Human resources management, Handbook.

The above diagram segments the process of recruitment which involves the recruitment

planning, it determines the number of applicants and type of applicants to be contacted and the

second process is sources of recruitment which includes internal sources and external sources.

The internal sources may be of two types: present personnel and referrals of these personnel. The

external source constitutes all those avenues through which an organization makes contact with

prospective candidates, other than its own internal candidates, either directly or indirectly. The

methods of contacting sources from where the prospective candidates will be selected, the

process of contacting those sources shorts. Recruitment is a two-way street, it involves recruiter

and recruits. Application pool which depends on the type of organization, the type of jobs, and

the conditions on the specific human resource market.

Recruitment is the process of searching for prospective employees and stimulating them

to apply for jobs in the organization. It is searching for and obtaining quality job candidates in

adequate numbers so that the organization can select the most appropriate people to fill its job

Recruitment planning

Sources of recruitment

Contacting sources

Application pool

To selection process

85

needs (Dowling and Schuler, 1990). According to Whiteball (1992) describes it as building a

roster of potentially qualified applicants. The recruitment process has two key aims: the

attraction and retention of the interests of suitable applicants, and the projection of a positive

image of the organization to those who come in contact with it (Beardwell and Holden, 1996).

Recruitment and selection process determines the decision as to which candidates will get

employment offers. The aim of this practice is to improve the fit between employees, the

organization teams, and work requirements, and thus to create a better work environment.

Sophisticated recruitment and selection system can ensure a better fit between the individual

abilities and the organization requires.

CAREER DEVELOPMENT

Career development is essential for implementing career plans. It is an activity

undertaken by the individual employees and the organization to meet career aspirations and job

requirements. Career development is the ongoing acquisition or refinement of skills and

knowledge, including job mastery and professional development, coupled with career planning

Professional development skills are the skills and knowledge that go beyond the scope of the

Career development is operationalized as employee perceptions of towards multiple

career options in present and future position in an organization which includes the promotion

opportunity, and skill improvement.

Kirk, Downey, Duckett & Woody (2000), career development refers to as a process for

organization goals, which includes providing career

86

information to employees, helping employees identify advancement opportunities and promoting

job satisfaction. Likewise, career development program also can be used to sustain or increase

and the organization work force requirements. In other words, career development activities can

help employees discover their vocational interests and strengths, whilst employers can make it as

a way to attract and best employees and retain them over time.

based on personal evalua

many successful individuals may not feel accomplished despite having high salaries are holding

influential positions in organizations.

vocation (Blau, 1985). Career commitment is characterized by a strong sense of identification,

persuasion, development and active involvement in individual career goals.

EXECUTIVE DEVELOPMENT

Executive development (or) management development is a systematic process of learning

and growth by which managerial personnel gain and apply knowledge, skills, attitudes and

insights to manage the works in their organization effectively and efficiently. Executive

development is a planned and organized process of learning rather than a haphazard or trial and

error approach.

Executive development is guided self-development. An organization can provide

opportunities for development of its present and potential managers. Executive development is

87

possible only when the individual has the desire to learn and practice. It is essential because

executives are the most valuable asset of any organization. The success and growth of an

organization depends largely upon the caliber and performance of its executives.

Process of Executive Development:

The essential ingredients of an executive development program are as follows: Analysis

of development needs: it deals with the present and future developmental needs of the

organization are ascertained. It helps to know the type of knowledge, skills, training and

experience required for each position. Appraisal of present managerial talent: A qualitative

assessment of the existing executives is made to determine the type of executive talent available

within the organization. Inventory of executive manpower: This inventory is prepared to obtain

complete information about each executive. An analysis of this information will show the

strengths as well as deficiencies of executive in certain functions relative to the future needs of

the organization. Planning individual development programs: Each one of us has a unique set of

physical, intellectual and emotional characteristics. Therefore, development plan should be

tailor-made for each individual. Establishing training and development programs: The human

resource department prepares comprehensive and well conceived programs. The department

identifies development needs and may launch specific courses in the fields of leadership,

decision-making, human relations, etc. the one is evaluating development programs:

Considerable money, time and efforts are spent on executive development programs. Program

evaluation will reveal the relevance of the development programs and the changes that should be

made to make this more useful to the organization.

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Executive development may require structured processes to help executives focus on

learning, share lessons, and integrate these into existing personal and organizational

knowledge/competence bases. ED involves the

attributes and experience to enhance the performance of the CE/director role. Experimental

learning may enhance self confidence through feedback, the observation of others and through

self-checking or self-monitoring.

GOAL SETTING

Goal setting is a factor that influences the success levels of individual employees,

departments and business units, and the overall organization. A goal is a performance target that

an individual or group seeks to accomplish at work. Goal setting is the process of motivating

employees by establishing effective and meaning full performance targets. It is often given as an

example of how the field of organizational behaviour should progress from a sound theoretical

foundation to sophisticated research to the actual application of more effective management

practice.

Goal setting in career advancement is based on the goal setting theory which states that

performance goals play an important key role in motivation. The goal as what an individual is

trying to accomplish that is the object or aim of action. In order to attain a set goal one needs

een as

important and achievable in order for them to be of sufficient force to initiate action (Averill et

al., 1990). The goal is about career advancement a specific goal should state the position which

an employee is aspiring to be in terms of job title, grade level and job content are the main

element of the job.

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Challenging goals are difficult and demand a lot of effort to be put in to meet the goals.

Robbins (2000) states that an individual should participate in setting the difficult goals of

himself/herself so that he or she can be committed to attaining it. The pursuit of challenging

goals is likely to lead to a higher income, job security and opportunity for promotions. However,

setting challenging career goals and working towards their achievement is insufficient for career

advancement. One requires to track of their performance regarding the attainment of the set

goals. Regular feedback is thus a perquisite to successful goal attainment and by extension,

career advancement.

Organizations typically spend less time setting and establishing direction and goals than

they spend evaluating employee performance at the end of the performance cycle. However, as

organizations realize the value of having a robust performance management process, they are

investing more time in establishing strategic direction and goal setting.

The following are the steps in a goal-setting process recommended by Mone and London

(2002). While this is a logical sequence, day-to-day realities of organizational life may not allow

for completion of all the steps, particularly in the sequence we present. The first three steps are

preliminary and a foundational part of good management practice, while the remaining steps are

the core of a strong goal-setting program: The first step explains that the Managers tell their

employees that they are starting the goal-setting process for the upcoming performance year and

indicate the time frame in which they want to have the goal-setting process completed. Managers

outline the process for them & the second step In preparation, managers advise their employees

to do the following to create a context for current goal setting: re-read the mission and vision for

the company; re- iew

their current goals, strategies, and tactics; identify any new overarching goals; and develop a

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working team of draft goals for their departments (Fitzgerald, 1995). The third step is Managers

share the overarching goals and department with their employees. They also share any other

strategic messages that may be important for their employees to consider. The fourth step is

performance goals, strategies, and tactics, and development goals. The fifth step is Managers

meet with each of their employees to review and discuss their goals, strategies, and tactics.

aligned with the overall direction of the company and the department, are challenging and

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development goals will help him or her to improve performance in the current job or acquire the

skills or knowledge necessary to prepare for future jobs. The sixth step is once the goals,

employees to develop the goal measures of success and goal measurements. The seventh step is

Managers meet with their employees to review, discuss, and finalize measures. The eighth step is

The

ninth step is Managers communicate and discuss any changes with their employees and revise as

necessary. The last step is

to goals, strategies, etc., and each should keep a copy for their files.

When organizations provide employees with an abundance of tools and resources to

empower them to control and manage their performance, they also equip and enable employees

to act in a self-regulatory mode, which ultimately leads to greater focus on goal achievement and

performance success.

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The benefit of participation in goal setting is cognitive, not motivational. Participation

engenders information exchange, for instance, about strategies to achieve the goal, and such

discussions increase self-confidence in the ability to do so. However, participation in goal setting

results in setting more difficult goals than those who are assigned goals and more difficult goals,

not necessarily having participated in setting the goals, leads to higher performance. Locke and

Latham (2002) reported that when goal difficulty is held constant, the performance of those who

participate in setting goals. In fact, both a participatively set a goal and an assigned goal resulted

in higher performance than merely urging people to do their best. However, an assigned goal is

given; if the goal is assigned without explanation, it leads to lower performance than a

of goal

commitment, goal commitment can be increased in other ways. Employee

to assigned goals is important because it increases the relationship between goal difficulty and

performance.

INTERPERSONAL RELATIONSHIP

A dictionary of human resources & personnel management (1997) defines interpersonal

relations as relations, communications and dealing with people. There are three main areas of

dealing with co-workers are Dealing with subordinates, Dealing with peers, Dealing with

superiors. Good interpersonal skills, communication skills, empathy, collaboration and

cooperation and conflict management are required for good interpersonal relations at work in

case of all three groups of Co-worker.

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Interactions with superiors are

/ her contacts with any other individual within the organization. When dealing with superiors, it

is wise to give positive reinforcement. The employee should praise his / her boss for the meeting,

listening, understanding, being open minded and being willing to work with him / her. (Knippen

& Green, 1999)

Dealing with peers is an organization wants to improve the quality of its

products/services with them; it should help team members develop their personal relationships.

Building bonds, nurturing instrumental relationship collaboration and co-operation, team

capabilities are the competencies dealing with peers. Team capabilities, in other words, creating

group synergy in pursuing collective goals, are also important because when the team works

well, turnover and absenteeism decline, while productivity tends to rise.(Moreland et al.,in

Goleman,1998)

Building bonds-nurturing instrumental relationships People who are good at building

bonds cultivate and maintain extensive informal networks seek out relationships that are

mutually beneficial, build rapport and keep others in the loop, and make and maintain personal

friendships among work associates. (Goleman, 1998). People good in collaboration and

cooperation, balance the focus on the task with attention given to relate, share plans, information

and resources; they promote a friendly, cooperative climate and they spot the nurture

opportunities for collaboration.

Finally, one of the skills that enable good interpersonal relations among colleagues at

work is conflict management. Good feelings spread more powerful than bad ones, and the effects

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are extremely salutary, boosting cooperation, fairness, collaboration, and the overall group

performance.

TRAINING AND DEVELOPMENT

Human resource is considered as the most important resources of all other resources. The

human resource can be effectively put at work by means of proper training and development.

The training and development programmes are the instruments which determine the efficiency of

the employee, hence result in profit. As a part of the development activity in human resources,

the research is focused on the training activity. Training is a best way to make a person more

knowledgeable.

Training is a short-term process utilizing a systematic and organized procedure by which

non managerial personnel learn technical knowledge and skills for a definite purpose

development is a long term educational process utilizing a systematic and organized procedure

by which managerial personnel learn conceptual and theoretical knowledge for general purpose.

Training and development may be seen in the context of a continuum in which training content

proceeds in continuity rather than in discrete form because an individual proceeds in his job

hierarchy and what he has learned at a particular job is transferred to another job because of

transfer of learning. The transferability of this learning is more when two jobs have some kinds

of relationship in terms of the use of skills.

Therefore, the need for training does not remain continued in the development of skills

needed for specific jobs. They require skills and competence for future managerial jobs besides

their present jobs. Thus the distinction between training and development is more on account of

the contents rather than on account of the process involved.

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The following diagram explains Planning, training and development activities: It

comprises various activities spread into four. Figure 3.4

Source: L.M. Prasad, Human resource management, Handbook.

According to the model for planning, training and development activities, an organization has to

go through the following four stages:

Assessment Stage: Assessing training and development needs and stating training and

development objectives based on this assessment.

Stating T&D objectives

Assessing T&D Needs Assessment Stage

Identifying T&D methods for developing required competencies Methodology Stage

Organising T&D programmes keeping in view organizational policy and factors in the T&D effectiveness

Organising Stage

Evaluation of T&D outcomes in the light of stated objectives Evaluation Stage

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Methodology Stage: Identifying training and development methods through which required

competencies may be developed in trainees.

Organizing Stage: organizing training and development programs, keeping in view

organizational training and development policy and factors that affect training and

development effectiveness.

Evaluation Stage: Evaluation training and development outcomes in the light of training and

development objectives.

In each of the above stages, various critical issues are involved, which must be addressed

effectively to make training and development system effective.

The training and development continues to be a valued component in the modern

management of human resources. The scope of training and development activities vary from

one organization to another. The activities include employee, associate, technical, operational,

supervisor and management training and development programs. Group discussion and case

studies can be given to all the respondents for the further development in the training and

development.

MANAGEMENT POLICIES

Human resource management policies influence organizational performance through

employee behaviour. HRM policies-organizational performance, relationship was implicitly

assuming that HRM policies lead directly or indirectly though will mediate variables to

organizational performance. The business strategies are followed by HRM policies in

determining business performance and generic business strategies of cost reduction, quality

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enhancement, and innovation with HRM policies in improving organizational performance. The

link between HRM policies and organizational performance, many authors argued that employee

attitudes such as satisfaction, commitment, and motivation are mediating the relationship

between HRM policies and organizational and indicated employee satisfaction and motivation,

as HRM mediating outcomes.

Barney, 1991 argues that HRM policies such as employee resourcing, development,

rewards, and relations may play an important role in building the organization

pool by developing its rare, inimitable and non-substitutable internal resources and HRM

policies have a direct impact on employee attitudes, such as employee satisfaction, commitment,

and motivation, which subsequently influence employee behavior, such as employee absences,

turnover, and disputes that consequently affect organizational performance. Additionally, it is

argued that positive employee attitudes will produce low absences, turnover, and disputes.

Human resource management policies with respect to the innovation strategy, facilitate

cooperative, interdependent behavior that is oriented toward the long term, and foster exchange

of ideas and risk taking. The emphasis on the HRM policies with respect to the quality strategy,

facilitate quality enhancement by helping to ensure highly reliable behavior of individuals who

can identify with the goals of the organization. Thus, The contingency perspective, which is

represented by the link between the business strategies and HRM policies. Specifically, this link

is stronger between the business strategies of improvement of goods, quality enhancement, and

improvement of service and the HRM policies of recruitment, training and development,

promotion, and communication.

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The human resource policies can represent a significant source of competitive advantage

because they allow a firm to locate and develop employees who are more effective than those of

competitors. Superior employees create superiority both in primary value chain activities such as

managing inbound logistics and in support activities (such as development of a high-quality

management practices and its sources of advantage in competitive markets.

Human resource management policy decision involves the mechanism through which the

firm actually realizes the potential of its people; namely its strategy for developing employees. In

particular, the provision of training by the employer and the utilization of promotion-from-within

to fill vacancies. Company-sponsored training often increases the firm specificity of employee

skills, decreasing the likelihood that other firms would be able to deploy these trained workers in

an equally productive manner. Employees with firm-specific skills are then retained by the firm

that utilizes promotion-from-within as a primary mechanism for filling vacancies. A firm that

pays for training and that subsequently fails to promote from within is arguable failing to

capitalize on its investment. Therefore, that the capital intensity of the organization will magnify

the productivity affects of human resource management policies.

POTENTIAL APPRAISAL

In the modern era of human resource management appraisal system lays greater emphasis

on the department of employees rather than on their evaluation. This is better fulfilled by the

potential appraisal which involves assessing the capability of an employee which he possesses

but that is not being utilized fully. A fundamental premise behind potential appraisal is that every

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individual has certain hidden qualities in varying proportion. When these qualities are not

properly tapped and utilized, these remain dominant.

Steps in Potential Appraisal:

Potential appraisal approach in the same way as the performance appraisal with some

adjustments. Usually in a potential appraisal following steps are involved:

The first step involved in potential appraisal is the determination of role dimensions for

description and specification which provide information about the responsibilities involved in a

job and attributes required in the job holder. Usually, large organization prepares directory, for

job descriptions and main specifications. The second, After the determination of various

attributes required for the effective job performance, the mechanism for appraising these

attributed in an employee should be determined. The mechanism involved should include the

methods through which potential is to be appraised and the person(s) who will appraise. The

third, At this stage, the potential of the employee can be appraised in the light of various

attributed identified as above. The fourth, potential appraisal should be linked with other human

resource management elements such as providing feedback and counseling, training and

development, promotion, job rotation, etc. to make the appraisal meaningful.

Potential appraisal is used in a number of human resource management functions such as

human resource planning, promotion/termination decisions, and employee training and

development. Because of different uses of potential appraisal, it has become one of the important

tools for managing human resources throughout the world including India. Many companies in

India undertake potential appraisal either independently of performance appraisal or integrating

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both the systems into one. However, potential appraisal system works better when it is taken

independently.

JOB ROTATION

Job rotation has also been suggested as a motivational strategy. In this case, a person is

required to perform one job at one time, but he is rotated at different jobs after a certain period of

time. Thus, by performing a particular job only up to limited period, the person can find a change

in new jobs and his continuity of interest in jobs remain there. This has almost the same effect as

the job enlargement has. However, there are certain problems in this case. First, productive work

may suffer because of the obvious disruption caused by such changes. Second, job rotation

becomes less useful as specialization proceeds, for few people have breadth of technical

knowledge and skills to move from one job to another job. Third, there is no appreciable change

in personal satisfaction unless the jobs are such that the person is really interested in them. For

this purpose, the job rotation is not required. Thus, the role of job rotation in motivating people is

limited.

Job rotation practices in Japanese human resource management system; one element that

appears to be fundamental to the Japanese model of human resource management is the

flexibility that Japanese firms possess, where they depend on multi skilled employee. The

influence of job rotation on career development could be explained from various perspectives.

Firstly, job rotation is an effective way to enhance career development through its contribution in

developing employee's ability and specifically to those who needs to be trained at the workplace.

Career development refers to as a process for achieving s

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goals, which includes providing career information to employees, helping employees identify

advancement opportunities and promoting job satisfaction.

Job rotation provides information that the firm can use to improve the allocation of jobs

among employees, and it indirectly would reflect to career development opportunity. Job rotation

might be used as an effective way to transfer the resources within the organization. With job

rotation, each time an employee rotates the employer learns about new aspects of an employee's

ability. However, if an employee does not rotate, the employer has to learn more information

about the employee abilities.

Job rotation, mostly considered in human resource has come to be accepted as an

effective method of developing skills and providing motivation. Although employees moving

from one task to another for set periods are based on a simple logic, the value of employees is

considerably high. Job rotation, especially when focused on functional flexibility is an important

technique.

Correct implementation of job rotation should provide for the employee to be able to see

various stage of the production process as a whole. That is rotation facilitates the learning of all

aspects of the business, all products and services, sales and deliveries, even extending to after-

sales service. Therefore the employee has the opportunity to see how the efforts of his own

department and the quality of his own production affect other departments and processes, to

know the working conditions and management techniques of other departments, to know the

working conditions and management techniques of other departments, to know the details of the

terminology used in various technical processes at company level, and to be aware of the

potential effects of both external and internal forces on the company as a whole.

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The review of literature and conceptual framework above is concerned generally with HR

practices in automobile manufacturing companies. The following chapter deals with the findings

of the current research project on the HR practices in automobile manufacturing companies in

Chennai.