Chapter-1

Introduction

1. Introduction

HR practices involve the strategic operation of HR. they form the foundation and
guidance for managing the company’s employees and should coordination with the
executive business plan.

Example of HR practices include….planning, organizing, and managing the hr

department

Human resource management practices play an important role in the part of the
social exchange which characterizes employment relations, and in which the
components of its practices helps to manage and understand the better relationship
of the human resource in the organization. All most all developing countries are
trying to professionalize management practices in recent years. In spite of such
efforts, employee's indiscipline, politicized labor unions, low individual
productivity and unsatisfactory enterprise performance are some of the commonly
observed realties in most of the organization. Because of the prevalent socio-
economic conditions, these countries are placed at competitive disadvantages even
when they have huge of technical competent human resources. Most professional
manager in these countries expresses frustration over the situation but seem to
suffer from a withdrawal syndrome symptomatic of inaction and helplessness.

Recently, several attempts have been made to explain the ineffective utilization of
human resources in India These attempts provide different perspectives for our
understanding, but argue for developing a systemic rather than piecemeal approach
to the study of human resource management practices.
Many organizations have started to realize that Human Resource Managers must
take a proactive role on the employee's motivation.The knowledge, skills, creative
abilities, talents and aptitudes of an organisation’s workforce, as well as the value,
attitudes and beliefs of the individuals involved. It does mean that the management
can get and use the skill, knowledge, ability etc.
Different terms are used to denote human resource management. They are labour
management labour administration, labour management relations employee
employer relations, industrial relations, personal administration, personal
management, human capital management, human asset management, human
resources management and the like. Though these terms can be differentiated
widely, the basic nature of distinction lies in the scope or coverage and
evolutionary stage.
Human resource management is a management function that helps manager recruit,
select, train and development for members function obviously; HRM is concerned
with the people’s dimension in organisation.
Human Resource Management is a function involving procurement of suitable
human resources train and develop their competences motivate them reward them,
effectively and create inpart of the management team whose aim should be to
rendered dedicated and committed service for the success and growth of the
organization.
Organization and individual should develop and progress simultaneously for their
survival and attainment of mutual goals. So every modern management has to
develop the organization through human resources. Employee is a specialized
function and is one of the fundamental operative functions for human resources
management.
Why name 'Human Resource Management'?
 Human: refers to the skilled workforce in the organisation.
 Resource: refers to limited availability or scarceness.
 Management: refers how to optimize and make best use of such limited and
a scarce resource so as to meet the ordination goals and objectives.
1.2Meaning of Human Resource Management

Human Resource Management is a management function concerned with hiring,

motivating, and maintaining workforce in an organization. Human resource
management deals with issues related to employees such as hiring, training,
development, compensation, motivation, communication, and administration.
Human resource management ensures satisfaction of employees and maximum
contribution of employees to the achievement of organizational objectives.

Human resource management is the process of recruitment and selecting employee,

providing orientation and induction, training and development, assessment of
employee (performance of appraisal), providing compensation and benefits,
motivating, maintaining proper relations with employees and with trade unions,
maintaining employees safety, welfare and health measures  in compliance with
labor laws of the land.

1.3 Definition

Many great scholars had defined human resource management in different ways
and with different words, but the core meaning of the human resource management
deals with how to manage people or employees in the organization.
According to Edwin Flippo - 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”

The National Institute of Personal Management (NIPM) of India has defined

human resources – personal management as “that part of management which is
concerned with people at work and with their relationship within an enterprise. Its
aim is to bring together and develop into an effective organization of the men and
women who make up enterprise and having regard for the well – being of the
individuals and of working groups, to enable them to make their best contribution
success

According to Decenzo and Robbins- “HRM is concerned with the people

dimension” in management. Since every organization is made up of people,
acquiring their services, developing their skills, motivating them to higher levels of
performance and ensuring that they continue to maintain their commitment to the
organization is essential to achieve organizational objectives. This is true,
regardless of the type of organization – government, business, education, health or
social action”.

According to Michael Armstrong (1997), -Human Resource Management can be

defined as “a strategic approach to acquiring, developing, managing, motivating
and gaining the commitment of the organization’s key resource – the people who
work in and for it.”
1.4 Nature of human resource management:

1. Inherent Part of Management: Human resource management is inherent in

the process of management. This function is performed by all the managers
throughout the organization rather that by the personnel department only. If a
manager is to get the best of his people, he must undertake the basic
responsibility of selecting people who will work under him.

2. Pervasive Function: Human Resource Management is a pervasive function

of management. It is performed by all managers at various levels in the
organization. It is not a responsibility that a manager can leave completely to
someone else. However, he may secure advice and help in managing people
from experts who have special competence in personnel management and
industrial relations.

3. Basic to all Functional Areas: Human Resource Management permeates all

the functional area of management such as production management, financial
management, and marketing management. That is every manager from top to
bottom, working in any department has to perform the personnel functions.

4. People Centered: Human Resource Management is people centered and is

relevant in all types of organizations. It is concerned with all categories of
personnel from top to the bottom of the organization. The broad classification
of personnel in an industrial enterprise may be as follows: (i) Blue-collar
workers (i.e. those working on machines and engaged in loading, unloading
etc.) and white-collar workers (i.e. clerical employees), (ii) Managerial and
non-managerial personnel, (iii) Professionals (such as Chartered Accountant,
Company Secretary, Lawyer, etc.) and non- professional personnel.
 5. Personnel Activities or Functions: Human Resource Management involves
several functions concerned with the management of people at work. It
includes manpower planning, employment, placement, training, appraisal and
compensation of employees. For the performance of these activities
efficiently, a separate department known as Personnel Department is created
in most of the organizations.

6. Continuous Process: Human Resource Management is not a ‗one shot

‘function. It must be performed continuously if the organizational objectives
are to be achieved smoothly.

7. Based on Human Relations: Human Resource Management is concerned

with the motivation of human resources in the organization. The human
beings can‘t be dealt with like physical factors of production. Every person
has different needs, perceptions and expectations. The managers should give
due attention to these factors. They require human relations skills to deal with
the people at work. Human relations skills are also required in training
performance appraisal, transfer and promotion of subordinates.

1.5 Importance of human resource management

An organization cannot build a good team of working professionals without good

Human Resources. The key functions of the Human Resources Management
(HRM) team include recruiting people, training them, performance appraisals,
motivating employees as well as workplace communication, workplace safety, and
much more. The beneficial effects of these functions are discussed here:
 Recruitment and Training

This is one of the major responsibilities of the human resource team. The
HR managers come up with plans and strategies for hiring the right kind of
people. They design the criteria which is best suited for a specific job
description. Their other tasks related to recruitment include formulating the
obligations of an employee and the scope of tasks assigned to him or her.
Based on these two factors, the contract of an employee with the company is
prepared. When needed, they also provide training to the employees
according to the requirements of the organisation. Thus, the staff members
get the opportunity to sharpen their existing skills or develop specialized
skills which in turn, will help them to take up some new roles.
 Performance-Appraisals
HRM encourages the people working in an organisation, to work according
to their potential and gives them suggestions that can help them to bring
about improvement in it. The team communicates with the staff individually
from time to time and provides all the necessary information regarding their
performances and also defines their respective roles. This is beneficial as it
enables them to form an outline of their anticipated goals in much clearer
terms and thereby, helps them execute the goals with best possible efforts.
Performance appraisals, when taken on a regular basis, motivate the
employees.

 Maintaining Work Atmosphere

This is a vital aspect of HRM because the performance of an individual in an

organization is largely driven by the work atmosphere or work culture that
prevails at the workplace. A good working condition is one of the benefits
 that the employees can expect from an efficient human resource team. A
safe, clean and healthy environment can bring out the best in an employee. A
friendly atmosphere gives the staff members job satisfaction as well.

 Managing-Disputes

In an organisation, there are several issues on which disputes may arise

between the employees and the employers. You can say conflicts are almost
inevitable. In such a scenario, it is the human resource department which
acts as a consultant and mediator to sort out those issues in an effective
manner. They first hear the grievances of the employees. Then they come up
with suitable solutions to sort them out. In other words, they take timely
action and prevent things from going out of hands.

 Developing public relations

The responsibility of establishing good public relations lies with the HRM to
a great extent. They organize business meetings, seminars and various
official gatherings on behalf of the company in order to build up
relationships with other business sectors. Sometimes, the HR department
plays an active role in preparing the business and marketing plans for the
organization too.

 Any organization, without a proper setup for HRM is bound to suffer from
serious problems while managing its regular activities. For this reason,
today, companies must put a lot of effort and energy into setting up a strong
and effective HRM.
1.6 Objectives of human resource management
The primary objective of HRM is to ensure the availability of right people for right
jobs so as the organizational goals are achieved effectively.

 To help the organization to attain its goals effectively and efficiently by

providing competent and motivated employees.
 To utilize the available human resources effectively.
 To increase to the fullest the employee’s job satisfaction and self-
actualization.
 To develop and maintain the quality of work life (QWL) which makes
employment in the organisation a desirable personal and social situation.
 To help maintain ethical policies and behavior inside and outside the
organization.
 To establish and maintain cordial relations between employees and
management.
 To reconcile individual/group goals with organizational goals.
 Helping to create and maintain a harmonious employer or employee
relationship.
 To communicate HR policies to all employees.

1.7Significance and need of human resource management

 HR Strategy Planning:

HRM works towards improving a company’s bottom line profitability by

streamlining ways in which human capital impacts organizational success. It
outlines the scope of hiring staff members to get the work done and ensure a
close follow-up with the projections to assess future workforce needs as per
the business demand.

 Recruitment:

HR recruiters have an active role in executing the entire manpower hiring

process right from screening resumes, scheduling interviews till issuing offer
letter and competing related formalities.

 Compensation:

HRM is an unavoidable part since it presents the compensation structures

that which set company wages competitive balancing it competitive
businesses operating in the similar area, industry or companies. Here in this
purview the department acts attentively to conduct wage and salary surveys
to bring down compensation costs to match it with organization’s financial
status and forecasted revenue.

 Safety:

HRM plays a vital role in ensuring safe and sound working conditions to the
employee. This department executes Workplace Safety and Risk
Management Policies by maintaining correct work logs and records, and
setting programs in order to reduce incident of workplace injuries and
fatalities.

 No to Liability Claims:

HRM delivers a safe net to the company against liabilities pertaining to

allegations of unfair employment practices. The department is important to
 function in the direction to identify, examine and resolve workplace issues
keeping in consideration federal as well as state anti-discrimination and
harassment laws.

 Training and Development:

HR Department lays its prime focus towards offering the required training
and development programs to forge a strong employer-employee
relationship.

1.8 Functions of Human Resource Management

Human Resource Management functions can be classified in following three

categories.

1. Managerial Functions,
2. Operative Functions, and
3. Advisory Functions

1. The Managerial Functions of Human Resource Management are as follows:

 Human Resource Planning 

In this function of HRM, the number and type of employees needed to accomplish
organizational goals is determined. Research is an important part of this function,
information is collected and analyzed to identify current and future human resource
needs and to forecast changing values, attitude, and behavior of employees and
their impact on organization. To get things done through the subordinates, a
manager must plan ahead. Planning is necessary to determine the goals of the
organization and lay down policies and procedures to reach the goals. For a human
resource manager, planning means the determination of personnel programs that
will contribute to the goals of the enterprise, i.e., anticipating vacancies, planning
job requirements, job descriptions and determination of the sources of recruitment.

The process of personnel planning involves three essential steps.

Firstly, a supply and demand forecast for each job category is made. This step
requires knowledge to both labour market conditions and the strategic posture and
goals of the organization.

Secondly, net shortage and excess of personnel by job category are projected for a
specific time horizon.

Finally, plans are developed to eliminate the forecast shortages and excess of
particular categories of human resources.

 Organizing –

In an organization tasks are allocated among its members, relationships are

identified, and activities are integrated towards a common objective. Relationships
are established among the employees so that they can collectively contribute to the
attainment of organization goal. Once the human resource manager has established
objectives and developed plans and programs to reach them, he must design and
develop organization structure to carry out the various operations

 Directing –

Activating employees at different level and making them contribute maximum to

the organization is possible through proper direction and motivation. Taping the
maximum potentialities of the employees is possible through motivation and
command.The plans are to be pure into effect by people. But how smoothly the
plans are implemented depends on the motivation of people. The direction function
of the personnel manager involves encouraging people to work willingly and
effectively for the goals of the enterprise.

In other words, the direction function is meant to guide and motivate the people to
accomplish the personnel programs. The personnel manager can motivate the
employees in an organization through career planning, salary administration,
ensuring employee morale, developing cordial relationships and provision of safety
requirements and welfare of employees.

The motivational function poses a great challenge for any manager. The personnel
manager must have the ability to identify the needs of employees and the means
and methods of satisfy those needs. Motivation is a continuous process as new
needs and expectations emerge among employees when old ones are satisfied.

 Controlling –

After planning, organising, and directing, the actual performance of employees is

checked, verified, and compared with the plans. If the actual performance is found
deviated from the plan, control measures are required to be taken. Controlling is
concerned with the regulation of activities in accordance with the plans, which in
turn have been formulated on the basis of the objectives of the organization. Thus,
controlling completes the cycle and leads back to planning. It involves the
observation and comparison of results with the standards and correction of
deviations that may occur.
Controlling helps the personnel manager to evaluate the control the performance of
the personnel department in terms of various operative functions. It involves
performance appraisal, critical examination of personnel records and statistics and
personnel audit.

2. Operative Functions:

The operative functions are those tasks or duties which are specifically entrusted to
the human resource or personnel department. These are concerned with
employment, development, compensation, integration and maintenance of
personnel of the organization

The Operative Functions of Human Resource Management are as follows:

 Recruitment and Selection –

Recruitment of candidates is the function preceding the selection, which brings the
pool of prospective candidates for the organization so that the management can
select the right candidate from this pool.

The first operative function of the human resource of personnel department is the
employment of proper kind and number of persons necessary to achieve the
objectives of the organization. This involves recruitment, selection, placement, etc.
of the personnel.Before these processes are performed, it is better to determine the
manpower requirements both in terms of number and quality of the personnel.
Recruitment and selection cover the sources of supply of labour and the devices
designed to select the right type of people for various jobs. Induction and
placement of personnel for their better performance also come under the
employment or procurement function.
  Job Analysis and Design –

Job analysis is the process of describing the nature of a job and specifying the
human requirements like qualification, skills, and work experience to perform that
job. Job design aims at outlining and organizing tasks, duties, and responsibilities
into a single unit of work for the achievement of  certain objectives.

 Performance Appraisal –

Human resource professionals are required to perform this function to ensure that
the performance of employee is at acceptable level.

 Training and Development –

This function of human resource management helps the employees to acquire skills
and knowledge to perform their jobs effectively. Training an development
programs are organized for both new and existing employees. Employees are
prepared for higher level responsibilities through training and development.

Training and development of personnel is a follow up of the employment function.

It is a duty of management to train each employee property to develop technical
skills for the job for which he has been employed and also to develop him for the
higher jobs in the organisation. Proper development of personnel is necessary to
increase their skills in doing their jobs and in satisfying their growth need.

For this purpose, the personnel departments will device appropriate training
programs. There are several on- the-job and off-the-job methods available for
training purposes. A good training program should include a mixture of both types
of methods. It is important to point out that personnel department arranges for
training not only of new employees but also of old employees to update their
knowledge in the use of latest techniques.
  Compensation:

This function is concerned with the determination of adequate and equitable

remuneration of the employees in the organization of their contribution to the
organizational goals. The personnel can be compensated both in terms of monetary
as well as non-monetary rewards.

Factors which must be borne in mind while fixing the remuneration of personnel
are their basic needs, requirements of jobs, legal provisions regarding minimum
wages, capacity of the organization to pay, wage level afforded by competitors etc.
For fixing the wage levels, the personnel department can make use of certain
techniques like job evaluation and performance appraisal.

 Wage and Salary Administration –

Human resource management determines what is to be paid for different type of

jobs. Human resource management decides employees compensation which
includes -  wage administration, salary administration, incentives, bonuses, fringe
benefits, and etc,.

 Employee Welfare  and maintenance

This function refers to various services, benefits, and facilities that are provided to
employees for their well being. Human resource is considered as asset for the
organisation. Employee turnover is not considered good for the organisation.
Human resource management always try to keep their best performing employees
with the organization.
Merely appointment and training of people is not sufficient; they must be provided
with good working, conditions so that they may like their work and workplace and
maintain their efficiency. Working conditions certainly influence the motivation
and morale of the employees.

These include measures taken for health, safety, and comfort of the workforce. The
personnel department also provides for various welfare services which relate to the
physical and social well-being of the employees. These may include provision of
cafeteria, rest rooms, counseling, group insurance, education for children of
employees, recreational facilities, etc.

 Motivation:

Employees work in the organisation for the satisfaction of their needs. In many of
the cases, it is found that they do not contribute towards the organisational goals as
much as they can. This happens because employees are not adequately motivated.
The human resource manager helps the various departmental managers to design a
system of financial and non-financial rewards to motivate the employees.

 Industrial Relations:

These days, the responsibility of maintaining good industrial relations is mainly

discharged by the human resource manager. The human resource manager can help
in collective bargaining, joint consultation and settlement of disputes, if the need
arises. This is because of the fact that he is in possession of full information
relating to personnel and has the working knowledge of various labour enactments.

The human resource manager can do a great deal in maintaining industrial peace in
the organisation as he is deeply associated with various committees on discipline,
labour welfare, safety, grievance, etc. He helps in laying down the grievance
procedure to redress the grievances of the employees. He also gives authentic
information to the trade union leaders and conveys their views on various labour
problems to the top management.

 Separation:

Since the first function of human resource management is to procure the

employees, it is logical that the last should be the separation and return of that
person to society. Most people do not die on the job. The organisation is
responsible for meeting certain requirements of due process in separation, as well
as assuring that the returned person is in as good shape as possible. The personnel
manager has to ensure the release of retirement benefits to the retiring personnel in
time.

 Labour Relations –

This function refers to the interaction of human resource management with

employees who are represented by a trade union. Employees comes together and
forms an union to obtain more voice in decisions affecting wage, benefits, working
condition, etc,.

 Personnel Research –

Personnel researches are done by human resource management to gather

employees' opinions on wages and salaries, promotions, working conditions,
welfare activities, leadership, etc,. Such researches help in understanding
employees’ satisfaction, employees turnover, employee termination, etc,

This function involves recording, maintaining, and retrieving employee related

information like - application forms, employment history, working hours, earnings,
employee absents and presents, employee turnover and other other data related to
employees. The human resource or personnel department maintains the records of
the employees working in the enterprise. It keeps full records of their training,
achievements, transfer, promotion, etc. It also preserves many other records
relating to the behavior of personnel like absenteeism and labour turnover and the
personnel programs and policies of the organization.
 Chapter 2
Research Design Methodology’s

2.1 Statement of the research problem:

Alloy casting industry is experiencing a change, which is resulting in change

of employee behavior. So, it is the necessary for the “companies to know and
understand the reasons for the change and extent of change. The small scale
industry sector is highly heterogeneous in terms of the size of the enterprises
variety of product and services and levels of technology. Small scale industries
have been instrumental in the upward trend of our GDP and other indicators of
development; at this it is very important to understand the HRM practices of
employees.

2.2 Need for the study:

The study is to intend to know the human resource practices in the

organization. Through this it helps to develop the organization and also employees
a human resource practices procedure is essential to achieve goal of the
organization. If efficient human resource practices of employees are made only
that particular organization but also in other organization.

2.3 Objectives of the study

 The Study and analyze the HRM practices adopted by the organization
 To evaluate the perception of the employees towards the HRM practices of
the organization
  To study the factors effecting employee satisfactions towards HRM practices
of the organization
 To offer suitable suggestions to the problems encountered during the study

2.4 Scope of the study

The scope of a study explains the extent to which the research area will be
explored in the work and specifies the parameters within the study will be
operating. Basically this means that you will have to define what the study is going
to cover and what it is focusing on

2.5 Research Methodology

Research methodology is the specific procedures or techniques used to identify

select process and analyze information about a topic. In a research paper the
methodology section allows the readers to critically evaluate a study overall
validity and reliability.

2.6.1 Sources of Data

Data refers to information or facts however it also includes descriptive facts, non-
numerical information, qualitative and quantitative information

Data could be broadly classified as

 Primary data

 Secondary data
Secondary data

Secondary data are data; wich cannot be traced back to the level of individual cases
of statistical unit. In contrast to primary data it does not allow for mathematical
calculation such as determining an arithmetic mean, a correlation.etc

2.8 Limitation of the study

 The survey was conducted only for the sample size respondents.
 Lack of co-operation by organization to disclose the information.
 Interaction employee was very limited because of their busy schedule.
 The time limit for the study was very short and insufficient.

2.9 Literature review:

A literature review is an evaluative report of information found in the

literature related to your selected area of study. The review should describe,
summaries, evaluate and clarify this literature. It should give a theoretical base for
the research and help you (the author) determine the nature of your research.
Works which are irrelevant should be discarded and those which are peripheral
should be looked at critically.

Folger& Konoysky, 1989. Therefore employee's positive perception of HRM

practices will be positively related to employee's trust in their managers.
Customers are exposed to organizational climate by being close to employees
psychologically and physically Management should be aware of this closeness,
which has a strong influence customer's perception of service quality (Schneider &
Bowen, 1993). Therefore trust is associated with positive and desirable outcomes
(Collins &Porras, 1997; Mayer & Gavin, 1999; Mishra & Mishra, 1994; Sako,
1998; Shaw, 1997). Hence it is true to say that employees’ trust in managers will
be positively related to perceived service quality. Likewise participatory
management is equally important. Participatory management practice balances the
involvement of managers and their subordinates’ information processing, decision
making and problem solving endeavor.

Bennet (1996) described that CRM seeks to establish long term, committed,
trusting and cooperative relationship with customers characterized by openness,
genuine concern for the delivery of high quality services, responsiveness to
customer suggestions, fair dealings and willingness to sacrifice short term
advantage for long term gains. As suggested by (Levitt, 1986; Gronroos, 1994;
Morgan, 1994; Gummesson, 1999; Bejouetal, 1998) trust, commitment, ethical
practices, fulfilment of promises, mutual exchange, emotional bonding,
personalisation and customer orientation have been reported to be the key elements
in the relationship building process. Schneider and Bowen (1999) suggested that
companies manage how to implement concern for customer needs in all actions
that might influence.

Schuler (1992) suggests that Strategic Human Resource Management (SHRM) has
many different components, including policies, culture, values and practices.
Strategic business needs of an organization are influenced by its internal (which
mainly consist of factors such as organizational culture and nature of business) and
external characteristics (consisting of the nature and state of economy in which the
organization is existing and critical success factors, i. e., opportunities and threats
provided by the industry), which are influenced by HR activities.

Thornhill, Lewis, Millmore, and Saunders (2000) found a potential role for HR-
centred strategies to be used to change or realign the culture of an organization. An
organization can change its culture through its recruitment strategy of replacing
managers with those from outside, restructuring the organization, downsizing the
workforce, training programmes, new reward strategies and performance
management to alter employee behaviours or reinforce emergent ones. After the
economic liberalization, Indian organizations were under pressure to change from
low-cost, indigenous, less efficient and outdated technology to high-cost modern
technology and prepare people to use it. This was done to develop and maintain
their competitive edge in the larger business environment (Khan, 1999).

The potential value of the employees is to be increased by collectively enhancing

and linking their skills and capabilities in tune with the contemporary requirements
of the market, and to be faster than the competitors. The success of the HRM will
be determined by its ability to harness the intelligence and spirit of people by
creating a learning climate. Indian organizations normally direct their HRM efforts
towards the development of competencies, culture and effectiveness among
employees individually or in groups.

Fombrun, Tichy, and Devanna (1984) expanded these premises and developed
the model of SHRM, which emphasises a ‘tight fi t’ between the organizational
strategy, organizational structure and HR system. Political, economic and cultural
forces are responsible for an organization’s mission and strategy. This explains
these causal relations, which form the ‘tight fi t’ between strategy, organization
structure and HR polices and practices. On the basis of mission and strategy, the
shape of organization is structured, i.e., people are organized to carry out different
tasks to achieve the organization’s mission.

Mr. R. K. Raoin his article” management by values" (personnel today, vol. xx,
no.3, oct-dec; 1999) has mentioned about the importance of ethics in an
organization and management. According to him an organization that follows a set
of guiding beliefs and communicates those ethical values to its employees to
follow them and thus institutionalize as a culture, can win and sustain loyalty of the
customers for longer period of time. Also, such organizational culture has a
positive impact on the performance of its employees. True cost of employee
turnover has long been underappreciated and underestimated by human resource
managers and all stakeholders entangled in the issue (Mohanty, 2009). Internal
marketing concept in organization has long been viewed by several researchers.

White, and Poul (1998) developed and tested a model of the effects of the service
oriented climates in bank branches on customer satisfaction. They took some HRM
factors e.g. participation, leadership and training and treated these as foundation
variables important to create climates for service. They found some support for
inferring that HRM factors influenced theclimate for service and found that climate
had a reciprocal cause-effect relationship with customer satisfaction.

Gelade&Ivery (2003) in a study of bank branches estimated a structural model of

the effects of several HRM related variables and a general climate measure on a
mix of performance outcomes. Their 'general climate' factor was a composite
measure of sub-factors depicting employee perception about top management's
concern for employees, local managers efforts to build team work, team goals,
feedback, pay fairness, training and opportunities to use one's abilities. The authors
found that these HR practices helped predict their general climate construct, which
itself was strongly related to performance. Service organizations are shifting their
focus from 'transactional exchange' to 'relational exchange' for development of
mutually satisfying relationship with customers.
Wolf and Zwick (2008) found that employee involvement and financial incentives
and inducement were often honored as efficient way for increasing the
organizational productivity. They revealed that employee job involvement lifted up
the organizational productivity, but monetary incentive scheme did not do so.
Schneider and Bowen (1993) postulated that by recruiting and selecting right
people, training them to work in the market segment allocated to them, rewarding
them according to the objective achieved by them would get benefits to the
organization. Efficient service deliveries were the result of the quality of employee
improvement and welfare, including environment for work, training and
development, job design, and attention to the employee interests. The outcome of
the analysis pointed out that the service approach reflecting the magnitude of
employee development derived employee outcomes such as efficiency and
productivity and employee job satisfaction. The outcomes of employees due to
such activities were significantly correlated with the customer satisfaction and,
thus, with the business performance, but only some associations to financial
performance were significant.

Delaney and Huselid (1996) categorized the human resource management

practices into the factors that improved employee skills, motivated and inspired the
employees, and arrangement design of the workplace. They concluded that at least
the following four human resource management dimensions could be
acknowledged in his work, these were, employee feedback, their training and
development, workplace design, and the employee pay system. A number of
authors have explored the links between individual HR practices and corporate
financial performance.

Garvin (1988) and Zemke (1989) examined internal service quality from different
perspectives; they shared a fundamental underlying belief that the organizations
attempting to deliver service quality to their external customers must do so by
serving the needs of their internal customers first. Berry (1981); Gronroos (1990)
and Gummesson (1990) stated that if a management wanted its employees to
deliver an outstanding level of service to customers, it must be prepared to do a
great job with its employees. Gronroos (1981) stated that internal marketing should
create an internal environment which supports customer consciousness among
staff.
 Chapter scheme:

Chapter -01: Introduction

Human resources management introduction, definition, characteristics,
nature, importance, significance, need, objectives of human resources
management, functions of human resources management

Chapter -02 Research Design Methodology

This chapter deals with Introduction, statement of problem, literature
review, objectives of the study, scope of the study, methods of data
collection ,limitation of the study, chapter scheme.

Chapter-03 HR Practices of MSME In India

Introduction of hr practices of MSME in India. MSME overview, Meaning
of MSME, HR Practices of MSME in India. Human resource issues in
MSME.

Chapter-04: Data analysis and Interpretation

This chapter deals with the introduction, tables, graphs, and interpretation.

Chapter-05: Findings, Suggestions, Conclusion.

This chapter deals with findings, suggestions, and conclusion.

 Chapter 3

HR practices in MSME-an overview

3.1 Introduction

The MSME sector is an important pillar of Indian economy as it

contributes greatly to growth of Indian economy with a vast network of
around 30 million units, creating employment of about 70 million,
manufacturing more than 6000 products, contributing about 45% to
manufacturing output and about 40% of exports, directly and indirectly.
Despite the significant contributions of the MSME sector, the sector
continues to face certain constraints like, as pointed out in PM’s Task Force
Report, 2010, availability of adequate and timely credit, high cost of credit,
collateral requirements, access to equity capital and rehabilitation of sick
enterprises, etc. It thus emerges that adequate, timely and affordable credit is
one of the bigger issues for the MSME sector. At present, a literature survey
indicates that no study for the estimation of credit gap for the MSME sector
is available in India. However, the National Commission on Enterprises in
the Unorganised Sector (NCEUS) had estimated the credit gap only for the
micro enterprises at 73% as at end March 2012-the terminal year of the 11th
Five Year Plan, with the caveat that the number of such unorganized micro
enterprises was estimated at 70 million with an average credit off take of `
1.23 lakh per enterprise. This is in contrast to the MSME sector, which is
estimated to have 32.2 million enterprises with an average credit off take of `
7.16 lakh as at end March, 2012, based on scheduled commercial banks data
on number of MSME accounts. Against the backdrop of non-availability of
data on the demand for credit from MSME sector and the credit gap, the
Sub-Group has made an attempt to estimate the supply of, demand for and
gap of credit for the MSME sector for the 12th Plan. At the beginning of the
12th Plan period, the outstanding credit gap for the MSME sector is
estimated at 62%, which is estimated to reduce to 43% in March, 2017 with
the 2 assumption of minimum 20% Y-o-Y credit growth to MSME sector
and 10% Y-o-Y credit growth to medium enterprises by Scheduled
Commercial Banks (SCBs). However, if SCBs are directed to maintain
minimum 22% in their outstanding credit growth to MSE sector and
Medium Enterprises during the first two years of the 12th Five Year Plan
(i.e. FY 2012-13 and FY 2013-14) and further minimum 25% during the
remaining three years of the 12th Five Year Plan (i.e. FY 2014-15, FY 2015-
16 and FY 2016-17), the MSME credit gap will further reduce to 32% by the
terminal year of 12th Five Year Plan. To achieve the above reduction in
credit gap and for creating the enabling credit environment for the MSME
sector, the Sub- Group has made various recommendations, viz. 22% Y-o-Y
credit growth by SCBs for MSE sector and Medium Enterprises for FY
2012-14 and thereafter 25% YoY credit growth for FY 2014-17, 3% interest
subvention for Micro Enterprises, uniform application form by banks,
enhanced refinance fund to SIDBI to reach to ` 10,000 crore for FY 2017,
capacity building of MSME loan officers, innovative ways for offering
branchless banking, etc. 3 Section 1: MSME Sector Overview The MSME
sector is an important pillar of Indian economy as it contributes greatly to
growth of Indian economy with a vast network of around 30 million units,
creating employment of about 70 million, manufacturing more than 6000
products, contributing about 45% to manufacturing output and about 40% of
exports, directly and indirectly. This sector even assumes greater importance
now as the country moves towards a faster and inclusive growth agenda.
Moreover, it is the MSME sector which can help realize the target of
proposed National Manufacturing Policy of raising the share of
manufacturing sector in GDP from 16% at present to 25% by the end of
2022.

3.2meaning of MSME

MSME is stand for micro small and medium enterprise it was introduce by
the government of India in agreement with the micro, small, and medium
enterprises development act of 2006

3.3 HR Practices of MSME in India

Number of MSMEs in India FY 2020,

The micro, small and medium enterprises sector in India just like the
population, only second to China. In financial year 2020, the total number of
MSMEs in the country was more than 63 million. The majority comprised of
micro enterprises, with a higher number in rural areas than urban parts of the
country. More often than not, these were run by the owners with little or no
support and revenue earnings as a priority.

MSME significance

MSMEs are vital for the economy in terms of their contribution to the
market and generation of employment in the country. The manufacturing
output of MSMEs was close to 30 trillion Indian rupees during financial year
2015. The output from the enterprises also accounted for an almost 31
percent contribution to the GDP in the same financial year. A glance at the
enterprises. Between the two sectors, the dominant hand is laid by the
 service sector, which had an employment figure of approximately 50
million, whereas the manufacturing sector could only pull off half that
number. Most of the employment comes from unregistered enterprises, with
hesitations and avoidance of the difficult registration process quite evident.
The saying “small things make the largest impact” holds true for MSMEs in
India where small enterprises had a fixed asset value of over two trillion
Indian rupees. With more infrastructural input and a simplified process of
registration and receiving benefits from the government, MSMEs in the
country are destined to go a long way.

Number of micro, small and medium enterprises across India in financial

year 2020, by type (in millions)

Table column chart

Characteristi Rural Urban All

c
Micro 32.41 30.64 63.05
Small 0.08 0.25 0.33
Total 32.49 30.9 63.39

3.4 Review of Literature

MSME is the backbone of our Indian economy and it is facilitating a

sustained growth over the years both in terms of employment and economic
growth. Its role in exports and industrial growth is significant. In spite of
these facts, our Indian MSMEs are lagging as compared with developed
economies of the world. MSMEs are facing many hurdles and as a result, the
expected high growth has become a nightmare. The hurdles can be listed as
financial constraint, lack of strategies in marketing, lack of quality, lack of
newness or novelty etc. Hence in this paper, attempt has been made by
considering Innovation as one of the main construct which might have
considerable impact on the performance of MSMEs of Indian origin.

3.4.1Innovation

Today’s Indian economy is characterized by great complexity and its growth

mainly depends on the innovation. It is the one which increases the comfort
level of a common man by offering value added products/services. These
innovative firms create employment, generate revenue and also change the
people’s life style by offering quality products or services

. However, more innovation happens only if there exists an ecosystem which

nurtures the ideas resulting in the creation of good number of technological.

Innovation is a process rather than an event and it is on continuous basis,

having taking care of technology, manufacturing and other related activities.
The innovation in a firm is an interactive process which happens across the
different departments and results in break- through products which are ready
to be commercialized

. Innovation also happens as a result of organization’s learning capabilities

in order to deal the unexpected situations. So firms should try to give due
importance for its learning ability, in order to improve innovations. As a
result, the employee starts accumulating knowledge and consistently starts
using the intellect quickly for producing new products/services. The
innovation also depends on the firm’s ability to respond the ever changing
market demands. Proposed that the firm’s innovation ability is defined as a
set of characteristics that promotes the organization innovation. The
productivity, profitability, customer satisfaction, overall improvement of
an organization is happening in the Indian firms adopting innovations. This
is a fact realized after a thorough research done to find how innovations are
affecting Indian firms. As a result of this, the firms are able to achieve the
competitive advantage. Innovations acts like a catalyst which enhances the
performance of a company as compared with the company’s not adopting
innovations. Thus, innovation is a process of idea generation, technology
management, commercialization of a new product or improvement of an
existing product or process

We are using Technological, Product, Process and System innovation as the

four different variables under innovation constructs in our research.

3.4.2 MSME and Innovation

Innovations are not meant for only large firms which happen through
rational and analytical approach. In the existing competitive market, MSME
should take an initiative to use all unmet needs and convert them as
opportunities for its growth against the large firms. The literature indicates
that MSMEs have a significant potential that favors innovation. As against
big players, the MSMEs can distinguish themselves with less bureaucracy in
R & D system, ability to react quickly to the market demands and also less
of goal conflicts among employee and employer. In case of MSMEs,
employer strategy to grow is only to seek the opportunity and convert them
as innovative product…
3.5 Human resource issues in MSME

Micro Small Medium Enterprise (MSMEs) constitute over 90% of total

enterprises in most of the economies and are credited with generating the
highest rates of employment growth and account for a major share of
industrial production and exports. In India too, the MSMEs play a pivotal
role in the overall industrial economy of the country. In recent years the
MSME sector has consistently registered higher growth rate compared to the
overall industrial sector. With its agility and dynamism, the sector has
shown admirable innovativeness and adaptability to survive the recent
economic downturn and recession. In accordance with the provision of
Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the
Micro, Small and Medium Enterprises (MSME) are classified in two
Classes: Manufacturing Enterprises The enterprises engaged in the
manufacture or production of goods pertaining to any industry specified in
the first schedule to the industries (Development and regulation) Act, 1951).
The Manufacturing Enterprise is defined in terms of investment in Plant &
Machinery.

3.6 MANUFACTURING SECTOR

Enterprises Investment in plant & machinery Micro Enterprises Does not

exceed twenty five lakh rupees Small Enterprises More than twenty five lakh
rupees but does not exceed five crore rupees Medium Enterprises More than
five crore rupees but does not exceed ten crore rupees (Source Annual
Report, 2019-2020, Ministry of Micro, Small and Medium Enterprise)
Service Enterprises The enterprises engaged in providing or rendering of
services and are defined in terms of investment in equipment. SERVICE
SECTOR Enterprises Investment in equipment Micro Enterprises Does not
exceed ten lakh rupees Small Enterprises More than ten lakh rupees but does
not exceed two crore rupees Medium Enterprises More than two crore
rupees but does not exceed five crore rupees (Source Annual Report, 2019-
2020, Ministry of Micro, Small and Medium Enterprise) As per the quick
estimates of 4th All-India Census of MSMEs, for reference year 200607 the
number of enterprises is estimated to be about 26 million and these provide
employment to an estimated 60 million persons. Of the 26 million MSMEs,
only 1.5 million are in the registered segment while the remaining 24.5
million (94%) are in the unregistered segment. The state-wise distribution of
MSMEs show that more than 55% of these enterprises are in 6 States,
namely, Uttar Pradesh, Maharashtra, Tamil Nadu, West Bengal, Andhra
Pradesh and Karnataka. Further, about 7% of MSMEs are owned by women
and more than 94% of the MSMEs are proprietorships or partnerships.
MSMEs contribute 8 per cent of the country‟s GDP, 45 per cent of the
manufactured output and 40 per cent of our exports. The labour and capital
ratio in MSMEs and the overall growth in the MSMEs are much higher than
in the larger industries. The non-homogenousstructure in terms of range of
produce/service as well as size of industry adds to its dynamism. Thus,
MSMEs are important for the national objectives of growth with equity and
inclusion. The MSME sector has slowly come into the limelight, with
increased focus from government and other government institutions,
corporate bodies and banks. It is viewed as one of the greatest agents of
growth. Policy based changes, investments into the sector; globalization and
India‟s robust economic growth have opened up several latent business
opportunities for this sector. 2. MSMES IN INDIA Indian MSMEs represent
the model of socio-economic policies of Government which emphasized job
creation at all levels of income section and diffusion of economic power in
the hands of few, discouraging monopolistic practices of production and
marketing; and contributing to growth of economy and foreign exchange
earning with the low import-intensive operations.

Indian MSMEs also play a significant role for Nation development through
the high contribution to Domestic Production, Significant Export Earnings,
Low Investment Requirements, Operational Flexibility, Location Wise
Mobility, Low Intensive Imports, Capacities to Develop Appropriate
Indigenous Technology, Import Substitution, Contribution towards the
Defense Production, Technology – Oriented Industries, Competitiveness in
Domestic and Export Markets and Generate new entrepreneurs by providing
knowledge, training and practice. MSMEs that have a strong technological
base, innovative, inventive, international business outlook, competitive spirit
and willingness to restructure them as they can withstand the Present
challenges and come out successfully to contribute 22% to GDP.

3.7 ROLE OF HUMAN RESOURCES IN MESE’s Human resource

management plays an important role in MESE‟s, in order to implement a
successful business strategy to face this challenge, organizations, large or
small, must ensure that they have the right people capable of delivering the
strategy. HR and its different facets also play an important role to address
the growth issues that MSME‟s face. While the organization plans to follow
a successful trajectory, there is a need for both HR and the Promoters to
appreciate and agree on change management agenda through change in
organization culture. HR has the responsibility to understand business
dynamics in MSME‟s environment This sector is considered too been
engine of growth, especially in a developing country like India due to their
contribution to income generation, employment, GDP and export earnings.
The Indian economy is now the second fastest growing economy of the
world. As per the Ministry of Finance, the GDP of India stood at 8.8% in the
first quarter of 2019-20 (the overall growth of GDP in 2018-19was 7.2%);
overall growth in the Index of Industrial Production (IIP) was recorded at
13.8% during July 2019 as opposed to 7.2% in July 2019.In such a
visiblegrowth environment, tremendous efforts are being made by MSME‟s
to make their prominent presence felt and to convert their growth plans into
reality. In the last two decades, there have certain spaces where many
MSME‟s have not grown either by choice or by challenges in capabilities to
transform their business. The Small and Medium Scale Enterprises being
very volatile in nature take high amount of risk. It is therefore imperative for
them to address the uncertainty through reliable and loyal work force which
cash holder them in good and bad times.

3.8 SPECIAL HR CHALLENGES IN MSME’s When big organizations

go on a rampage, small ones have to be smart. This is the wisdom for
India‟s micro small and medium enterprises (MSME‟s) that fail to keep
pace with the growth juggernaut. Human resources are one of the most
essential growth indicators for these organizations. Growth-hungry in large
companies are scouring the market for human resources (HR), leaving only
crumbs for MSME‟s who can never out pay the big ones when it comes to
salaries. Moreover, typical about micro firms is the predominantly
horizontal structure that one wants to preserve it. The employees that
surround the entrepreneur are mostly the tight group that communicates
informally. When the organization grows, it becomes more difficult to
involve all employees equally in operational decisions. specifically, many
employees report a need for a transparent training and compensation policy
and a standardized introduction procedure for new employees. Employees
miss a uniform strategy and functional organizational structure. HR can
afford to give personalized attention to individual‟s needs in terms of
benefits, rewards, career goals, trainings& development needs and
sometimes HR functions in these organizations come as a weakness when all
the efforts invested in building a team become fruitless because of high
attrition rates. There can be several reasons to this such as dissatisfaction
with pay, HR policies and practices, lack of hygiene factors, employee
loyalty issues, and the like. Talent Attraction

 Not maintaining an active database of potential hires – adverts are placed

each time there is a vacancy without harnessing past database efficiently.

 Not implementing ample hiring channels such as referral, graduate

recruitment, internal transfers etc.,

 Lack of detailed job analysis which leads to ineffective recruitment Weak

or no employer branding – candidates and do not have a good knowledge of
the overall organization OR do not have a good experience during the
recruitment exercise

 Unable to offer higher than average starting salaries and having

„standard‟ benefits/rewards Hiring and Selection
 Top talent command premium: after weeks of hunting and rounds of
interviews, a person is selected. But his pay expectations are way beyond the
estimates. This is a typical scenario in

3.9 INNOVATIVE HR STRATEGIES MSME‟s

face unique challenges that stem largely from their size. While economies of
scale permit larger organizations to employ a team of specialists to address
the complexities involved in managing HR programs, this is not a viable
option for many MSME‟s. However, there has been little to no attention
paid to the role these strategic human resource management practices of
MSME‟s in bringing about the sustainability of the business. The
uniqueness of the MSME‟s forces the HR managers to be creative and make
some major amendments in their policies. Most of the MSME‟s failed to
achieve their individual objectives due to the lack of human resources and
the organization capabilities. Other reasons were probably because there was
a little invention, lack of skilled or know-how workers, traditional methods
of operation, cash flow and difficulties in obtaining financial support from
financial institutions or the government, lack of human resources
development, high level of international competition; lack of willingness to
spend on technology facilities. The market place for talented, skilled people
is competitive and expensive. Taking on new staff can be disruptive to
existing employees. Also, it takes time to develop 'cultural awareness',
product/ process/ organization knowledge and experience for new staff
members. As organizations vary in size, aims, functions, complexity,
construction, the physical nature of their product, and appeal as employers,
so do the contributions of human resource management. But, in most the
ultimate aim of the function is to: "ensure that at all times the business is
correctly staffed by the right number of people with the skills relevant to the
business needs. MSME‟s faces a number of problems - absence of adequate
and timely banking finance, limited capital and knowledge, non-availability
of suitable technology, low production capacity, ineffective marketing
strategy, identification of new markets, constraints on modernization&
expansions, non availability of highly skilled labour at affordable cost,
follow up with various government agencies to resolve problems etc.
 Chapter 4
Data analyses and interpretation
4.1 Introduction
Data analyses are the process of systematically applying statistical and or logical to
describe and illustrate, condense and recap and evaluate the data. An essential
component of ensuring data integrity is the accurate and appropriate analyses of
research findings.

This chapter deals with the data analysis and interpretation. For the purpose of the study
data were collected by way of administering questionnaires to the private sectors
employee. Analysis involves organizing the data in a manner, while interpretation is that
which explains the facts and figures.

The survey has been successfully carried out and the respondents gave good and
realistic answers to the questions. The information collected from the respondents is
tabulated, processed and analyzed to get some meaningful inferences.

Tabulation is the part of technical procedure where in the classified data are put in the
form of tables. After analyzing the data, the researcher should have to explain the
findings on the basis of some theory. It is known as interpretation. The data has been
collected from 50 employees. On HRM Practices,
Table 4.1: Classification of the Respondents Based on their Gender

Particulars No. of employees Percentage of

employees
Male 40 80
Female 10 20
Total 50 100

Chart 4.1: Classification of the Respondents Based on their Gender

100
90
80
70
60
50 No. of employees
40 Percentage of employees
30
20
10
0
Male
Female
Total

Interpretation: The above table and chart reveals that among 50(100%)
respondents, 80% of respondents belong to male category and 20% of the
respondents belong to female category. Thus from the above data it is found that
the highest respondents (80%) were male.

It Cleary shows that a majority of respondents belong to male categories, it found

the company have included more male workers because of the nature of the work

Table 4.2: Classification of the Respondents Based on their Age

Particulars No. of respondents Percentage of
respondents
18-20 10 20
21-30 20 40
31-40 10 20
41-50 8 16
50-above 2 4
Total 50 100

Chart 4.2: Classification of the Respondents Based on their Age

160

140

120

100

80 Percentage of respondents
No. of respondents
60

40

20

0
18-20 21-30 31-40 41-50 50- Total
above

Interpretation: The above table and graphs shows that out of 50(100%)
respondents 18-20 years old are 20%, 21-30 are 40%, 31-40 are 20% 41-50 are
16% and 50 above were 4% in the company.

Thus from the above data shows that majority 56% of the respondents
belong to the age group of 26-35 years.

Table 4.3: Classification of the Respondents Based on their marital status

Particulars No. of respondents Percentages of
respondents
Married 20 40
Unmarried 30 60
Total 50 100

Chart 4.3:Classification of the Respondents Based on their marital status

married unmarried

40%

60%

Interpretation: The above table and chart shows that among 50 (100%)
respondents, 40% of the respondents are married where as 60% of the respondents
are unmarried.

From the above data it is found that majority of the respondents were
unmarried.

Table 4.4: Classification of the Respondents Based on their Family structure

Particulars No of respondents Percentage of
respondents
Nuclear family 20 40
Joint family 30 60
Total 50 100

Chart 4.4:Classification of the Respondents Based on their family structure

100
90
80
70
60
No of respondents
Interpretation:
50
40
Percentage of respondents The above graphs
30 shows thatout of
20
50 respondents
10
0 40% of the
Nuclear family Joint family Total
employees were in
nuclear family and 60 % of the employees were lived from joint family.

From the above data it is found that majority of the respondents were
belongs to joint family

Table 4.5: Classification of the Respondents Based on their social background

Particulars No of respondents Percentage of

respondents
Rural 28 56
Urban 22 44
Total 50 100
Chart 4.5: Classification of the Respondents Based on their social background

160

140

120

100
Percentage of respondents
80
No of respondents
60

40

20

0
Rural Urban Total

Interpretation: The above graph shows that out of 50 respondents 56 % of the

employees were coming from rural areas and remaining 44% of the employees are
coming from urban areas.

It clearly shows that more number of respondents belongs to rural background.

Table 4.6: Classification of the Respondents Based on their Designation

Particulars No of respondents Percentage of

respondents
Managerial employees 5 10
Supervisor 6 12
Workers 35 70
Others 4 8
Total 50 100

Chart4.6: Classification of the Respondents Based on their Designation

 160
140
120
100
80
60
40
Percentage of respondents
20
No of respondents
0
s or rs rs l
ee ke ta
oy r vis r the To
l o O
p pe W
l em Su
eria
ag
an
M

Interpretation: The above graph shows thatout of 50 respondents Managerial

employees are 10%, Supervisor are 12%, Workers are 70% and other department
employees were 8 % in the company.

Table 4.7: Classification of the Respondents Based on their Experience

Particulars No of respondents Percentage of

respondents
Less than 1 year 10 20
1 year - 5 year 25 50
5 year - 10 year 7 14
10 year – 15 years 5 10
15 years and above 3 6
Total 50 100

Chart 4.7: Classification of the Respondents Based on their Experience

 100

90

80

70

60

50
No of respondents
40 Percentage of respondents

30

20

10

0
Less than 1 year - 5 5 year - 10 year – 15 years total
1 year year 10 year 15 years and
above

Interpretation: The above graph shows that out of 50 respondents 20% of the
employees have less than 1 year experience, 50% 1-5 years, 14% 5-10 years, 10%
10-15 years and 6% having the job experience of above 15 years.

The majority of the respondents are having 1-5 years of the work
experience.

Table 4.8: Classification of the Respondents Based on their Monthly income

Particulars No of respondents Percentage of

respondents
Below 5000 0 0
5000 – 10000 32 64
10000 - 15000 8 16
15000 - 20000 4 8
Above 20000 6 12
Total 50 100
Chart 4.8: Classification of the Respondents Based on their Monthly incom

70

60

50

40

30 No of respondents
Percentage of respondents
20

10

0
Below
5000 5000 -
10000 10000 -
15000 15000 -
20000 Above
20000

Interpretation: The above graph shows that out of 50 respondentsthere is 0% of

the employees are getting below 5000 salary, 64% of the employees were getting
5000-10000, 16% of the employees were getting 10000-15000, 8% of the
employees were getting 15000-20000 and 12% of the employees were getting
above 20000 in the company.

From this data we can interpret that majority 32% of the employees have
5000-10000 of monthly income.

Table 4.9: Classification of the Respondents Based on their Educational

qualification

Particulars No of respondents Percentage of the

respondents
SSLC 14 28
PUC 10 20
Graduation 4 8
Post-graduation 2 4
Others 20 40
Total 50 100

Chart 4.9: Classification of the Respondents Based on their Educational

qualification

100
90
80
70
60
50
40
No of respondents
30
percentage of the respondents
20
10
0
LC C n n rs l
PU tio tio ta
SS a a the To
ad
u du O
Gr gra
st-
Po

Interpretation: The above graph shows that out of 50 respondents 28% of the
employees were completed SSLC, 20% of the employees were completed PUC,
8% of the employees were completed graduation, 4% of the employees were
completed post-graduation and 40% of the employees were completed other
course.

Thus from the study it is observed that majority of employees are hold other
qualification.
Table 4.10: Classification of the Respondents Based on their opinion aboutmethod of
recruitment

Particulars No of respondents Percentage of respondents

Advertisement 5 10
Third party recruitment 15 30
College recruitment 0 0
Job fairs 0 0
Employee referrals 5 10
Walk in interview 25 50
Total 50 100

Chart 4.10: Classification of the Respondents Based on their opinion about

method of recruitment

160
140
120
100
80
60
40 Percentage of respondents
20 No of respondents
0
t

iew
irs

als

l
ta
en

en

en

fa

To
r
m

tm

tm

rv
er
b
se

te
ef
ui

ui

Jo
rti

in
r
cr

cr

ee
ve

re

re

in
oy
Ad

ge
rty

alk
pl
lle
pa

W
Em
Co
ird
Th

Interpretation: The above graph shows that out of 50 respondents 10% of the
employees were joined the company through advertisement, 30% were joined from
third party recruitment, 0% from college recruitment, 0% from job fairs, 10% from
employee referrals and 50% of them are joined walk in interview.

Table 4.11: Classification of the Respondents Based on their opinion about

Recruitment and selection
Particulars Strongl
Strongly Disagr y
Agree Neutral Total
Agree ee Disagre
e
R % R % R % R % R % R %
Recruitment
&Selection
process is 1
10 20 20 40 10 20 7 3 6 50 100
effective for the 4
organizational
objectives.
Recruitment
&Selection
increase
1
efficiency in 20 40 10 20 10 20 6 4 8 50 100
2
the
organization
activities.
Do you think
best source
increase the 1
18 36 20 40 5 10 5 2 4 50 100
efficiency on 0
all organization
department
Recruitment
&Selection
process 1
15 30 20 40 10 20 5 0 0 50 100
depends on 0
source of
Recruitment
Better result of
Recruitment
1
&Selection can 15 30 20 40 10 20 5 0 0 50 100
0
increase by
Recruitment
Recruitment 10 20 30 60 2 4 6 1 2 4 50 100
&Selection 2
process
depends on
 interviews.
Interviews are
the basic filter
of the 1
18 36 17 34 10 20 5 0 0 50 100
Recruitment 0
&Selection
process.
Different
methods should
20 40 15 30 10 20 3 6 2 4 50 100
be used for
Recruitment
Recruitment
should be 1
18 36 17 34 8 16 7 0 0 50 100
knowledgeable 4
and experience.
Recruitment
&Selection
1
behaviour 10 20 15 30 10 20 5 10 20 50 100
0
depends on
recruiter
End result of
Recruitment
&Selection 2
15 30 10 20 0 0 10 15 30 50 100
process can be 0
wrong because
of recruiters.

Chart 4.11: Classification of the Respondents Based on their opinion about

Recruitment and selection
100

90

80

Recruitment &Selection process is

effective for the organizational
objectives.
70
Recruitment &Selection increase
efficiency in the organization
activities.
Do you think best source increase the
efficiency on all organization
60 department
Recruitment &Selection process
depends on source of Recruitment
Better result of Recruitment
&Selection can increase by
50 Recruitment
Recruitment &Selection process
depends on interviews.
Interviews are the basic filter of the
Recruitment &Selection process.
40 Different methods should be used for
Recruitment
Recruitment should be
knowledgeable and experience.
Recruitment &Selection behaviour
depends on recruiter
30
End result of Recruitment &Selection
process can be wrong because of
recruiters.

20

10

0
Interpretation:

Interpretation is the act of explaining, reframing, or otherwise showing your own

understanding of something..Interpretation requires you to first understand the
piece of music, text, language, or idea, and then give your explanation

The above graph shows that out of 50 respondents 20% strongly agree, 40% agree,
20 % neutral, 14% disagree and 6% strongly disagree for Effectiveness of selection
process in organization. 40% strongly agree, 20% agree, 20% neutral, 12%
disagree, 8% strongly disagree for increase efficiency in the organization.
36%strongly agree, 40%agree, 10% neutral, 10% disagree and 4% strongly
disagree for increase efficiency in organization activities. 30% strongly agree, 40%
agree, 20 % neutral, 10% disagree and 0% strongly disagree for selection process
depends on source of recruitment. 30% strongly agree, 40% agree, 20 % neutral,
10% disagree and 6% strongly disagree for increase in selection if recruitment
result are good. 20% strongly agree, 60% agree, 4 % neutral, 12% disagree and 4%
strongly disagree for selection depends on recruiter. 36% strongly agree, 34%
agree, 20 % neutral, 10% disagree and 0% strongly disagree for interviews are
filter of selection process.20% strongly agree, 30% agree, 20 % neutral, 6%
disagree and 4% strongly disagree for different methods of recruitment. 36%
strongly agree, 34% agree, 16 % neutral, 14% disagree and 0% strongly disagree
for it recruitment should be knowledgeable. 20% strongly agree, 30% agree, 20 %
neutral, 10% disagree and 20% strongly disagree for behaviour of recruiter.
 CHAPTER- 5

FINDINGS, SUGGESTION AND CONCLUSION

5.1 FINDINGS:

A following are the major finding that the researcher came across in the study of
effectiveness of training program on the performance of employees.

 The highest numbers of the respondents were male.

 It is found that a majority (40) percent of the respondents were in the age
group between 21-30 years.

 The highest numbers of the respondents were unmarried (60) percent.

 The majority 50 percent of the respondents were having 1-5 years of service.

 About their monthly income it is observed that most of the employees have
Rs 5000 to10,000.

 Number of employees are completed lower level education like SSLC and
PUC just few of them have completed higher studies

 Majority 80 percent of the respondents were responded to modern

techniques of performance appraisal is more effective in the organization

 Performance appraising techniques used by the organization are very old and
traditional it may not give clear picture of real performance.

 Organization’s working environment is rather dusty.

 Employees are know about facilities are given by the organization to

motivate the employees.
  Employees are agreeing with the HR practices properly following by the
organization

 All employees are commonly satisfied with organization work and

environment

5.2 SUGGESIONS:

Vishveshwarayya alloy casting pvt ltd currently has Performance related meetings
once in a year but these meetings to be conducted more frequently in a year,
because it will help employees to correct their loopholes immediately. Rather than
waiting for whole year.

 Management should provide proper induction and orientation program that

will help employees to know about their roles and responsibilities.

 Training should be given very effectively, because employees shown

dissatisfaction in their responses about T & D.

 Need based training may be given to every employees

 Labour welfare measures must be taken because it is obligated under law; so

far less measure are taken to maintain welfare of the employees.

 Employees should be well motivated in the means of awards, rewards that

could be in monitory form or in the non-monitory form.

 Provide the incentives to the employee based on the performance in order to

motivate the employee of the better performance.

 Organization should maintain the environmental-friendly techniques of

manufacturing, which helps to our eco-system.
  Organization been maintaining traditional technology in it’s production and
better use sophisticated technologies of today.

 Organization need to be upgraded as per today’s competition in the

manufacturing sector.

 Higher level employees should maintain friendly environment with the

employees in the organization.

 Organization should be providing better career developing opportunities to

workers it helps reduce the employee’s turnover.

 Prioritizing lower employees in the decision making process, increase level

of feel of participation in the organization.

 Personal touch may inculcated to maintain relationship with its staff by

ensuring the well being of the employees

5.3 CONCLUSION:

In order to have a better HR practices, every system to be effective and

constructive. Human Resource Management focuses on matching the needs of the
business with the needs and development of employees. Tarmac depends on its
people because their skills contribute to achieving its business objectives. The
emphasis is on helping individuals to work together. Workforce planning is part of
this strategic process, which looks at the long-term needs across the organization.
Personal development plans enable every individual to grow both professionally
and personally within the business. They create a distinct and important
competitive advantage through selecting and developing highly motivated and
skilled staff that are able to perform at high levels.
The respondents are more aware of the determinants as well as the implications of
hr practices like recruitment and selection, training and development, motivation,
performance appraisal, labour welfare measures etc. Vishveshwarayya alloy
casting pvt.ltd already has fair and good technologies their production and all
different techniques using for different situations. Vishveshwarayya alloy casting
pvt.ltd adopted new technologies even in performance appraisal system. Blend of
technological up gradation and traditional principles would create a management
of effective HR practices in the organization that manages organization
constructively.
BIBLOGRAPHY:

1 Rao. V.S.P. (2005) “HUMAN RESOURCE MANAGEMENT” (second

edition), Arunag Jain for Excel Books News Delhi.
2 P.C.Thripathi,&P.N.Reddy(2007) “PRINCIPLE OF MANAGEMENT”
(3rd edition) Tata McGraw-Haill Publishing company limited .new Delhi.
3 Dr.Avadesh.S.JHA, and Mrs.S.Bhargava,A.P.H.,(2010) “HUMAN
RESOURCEMANAGEMENT” publishing corporation,newdelhi .
4 P.SubbaRao(2010) “HUMAN RESOURCE MANAGEMENT AND
INDUSTRIAL RELATION”, Himalaya Publishing house Pvt.ltd. Delhi.
5 P.G.Aquinas (2006) “HUMAN RESOURCE MANAGEMENT”, Vikas
publishing house Pvt. Ltd. New Delhi.
6 K.Aswathappa, (2008) “HUMAN RESOURCE MANAGEMENT” (fifth
Edition), Tata McGraw-Hill Publishing company Limited.
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