Research Proposal
“An Empirical Study of the impact of Training and Development on
employee productivity in MSME (Special Ref. to IT & ITeS Companies,
Pune)”
Index
Sr. No. Description Page No.
1. INTRODUCTION
2. SIGNIFICANCE OF THE STUDY
3. LITERATURE REVIEW
4. OBJECTIVES OF THE STUDY
5. EXPECTED OUTCOME/HYPOTHESIS
6. RESEARCH METHODOLOGY
7. BIBILIOGRAPHY
Introduction
Training is one of the most inevitable compulsions and necessary for professional and
personal evolution. It always assists towards a continuous and continual development. The
maxim “the fittest who survive” changed into “one who quickly adapts to the change would
survive” and this can be only through a continual and lifelong training and development
process which must be goal oriented and systematic.
Companies are experiencing great change due to new technologies, rapid development of
knowledge, globalization of business, and development of e-commerce (Raymond A Noe,
2008). Also, companies have to take steps to attract, retain, and motivate their human
resources. Training is not a luxury, it is a necessity if organizations are to participate in the
global and electronic marketplaces by offering high quality products and services. Training
prepares employees to use new technologies, function in new work system and communicate
and cooperate with peers or customers who may be form different cultural background.
India laddered to numerus pinnacles in the IT/ITeS business. They account for 25% of the
total Indian Trades (2019). From $2 billion industry in 1994 -95 when the Indian IT/ITeS has
come into limelight, since then, the industry had grown exponentially over the years.
Information Technology is the main sector of new and digitalized India. The sector is
contributing a lot toward the GDP of the nation. In this era, IT industry especially, that kind
of organization which come under the influence of Micro, Small & Medium Enterprises
(MSME) categories, they have been facing lots of challenges—that reads: proper training and
development facility, measuring the productivity of employees pre – training and post –
training and a myriad of problems. And because of above mentioned problems, MSME
(especially IT/ITeS) has been facing problems pertaining to tactical decision making, dearth
of knowledge transfer activity, leadership and attrition rate.
Training is the best solution for achieving high productivity and improving employee
performance. Among all the assets, human assets is very pivotal and precious. Those
companies who invest in human capital would survive in the competitive and dynamic
scenario. Imparting good training skills will mitigate the staff attrition, alleviate the
miscommunication, cut down the redundant costs and so on. When an organization optimally
implements these constructs, undoubtedly there will be enhanced productivity and excelled
performance.
“In accordance with the provision of Micro, Small & Medium Enterprises Development
(MSMED) Act, 2006 the enterprises are classified into two classes: -
1. Manufacturing Enterprises (Special ref. to IT Organisation)
2. Service Enterprises (Special ref. to ITeS Organisation)
“Definition of Enterprises base on Investment”
Manufacturing Sector:
Micro Enterprise Does not exceed 25 Lakhs INR
Small Enterprise More than 25 Lakhs INR but does not exceed 5 Crore
Medium Enterprise More than 5 Crore INR but does not exceed 10 Crore
Service Sector:
Micro Enterprise Does not exceed 10 Lakh INR
Small Enterprise More than 10 Lakhs but does not exceed 2 Crore
Medium Enterprise More than 2 Crore but does not exceed 5 Crore
Significance of the Study:
A training and development programme allows one to consolidate those skills that each
employee mandates to improve. More precisely, a well – structured training and development
programme ensures the employees to horn and upgrade their skills and background
knowledge constantly and consistently.
With a proper planning around a proven framework or potential to be proven framework,
realistic evaluation targets, training and development would reap financial benefits. It is now
strategically imperative that training is conducted with clear understanding that if people are
truly the organization’s greatest assets, then training and development is beyond doubt the
greatest investment and must hence be utilized.
Micro, Small & Medium Enterprise sector has emerged as a high vibrant and dynamic sector
the Indian Economy over the last five decades. The MSME plays a significant role in the
progress of the economy with their effective, efficient and flexible role.
Objective of the Study:
1. To study features affecting training and development (T & D) of employees in MSME
(special ref. to IT/ITeS)
2. To determine the impact of training and development on Employee Productivity
3. To explore the impact of training on organizational effectiveness through employee
productivity
4. To recommend approaches that can be used to improve the T & D of employee in
MSME
5. To examine whether there is link between training and employee productivity in
MSME
Why to Study MSME (Special Ref. IT/ITeS, Pune)
The pivotal role of MSME in developing nations like India is often discussed in terms of their
well -known contributions, such as employment and regional development. However, the
contemporary world sustainability of these enterprises is a more crucial concern.
An important issue that is being faced by MSMEs worldwide is continuous improvement.
MSMEs need to consider continuously improving skills, knowledge and competency to their
employees pertaining to specific job to foster their productivity as well as organizational
productivity.
From the paper title, “Training and Development in MSME – Issues and Challenges” by
Federation of Indian Chamber of Commerce and Industry (FICCI), MSMEs in India facing a
lot of problems because the dearth of proper training and development programme and its
proper evaluation for the productivity measuring.
Today’s world economy has been said as a knowledge-based economy and because of that
knowledge became the most important resource and training became the most important
process. Training and development improve the performance and productivity of the
employee. So, it is essential to foster the level and frequency of training and development for
the high productivity.
Literature Review
1. Training and Development
2. Training and Development in MSMEs
3. Employee Productivity (Fostering)
Mani, A. & Murugesan, G (Nov. 2019) As organizations endeavour to improve execution
through their human capital, trainers and professionals in the working environment are
progressively anticipated to provide better results. HR today is a key benefactor towards
unravelling authoritative issues and accomplishing significant business results. The market
situation after the subsidence has prompt radical changes in the IT business. Now and again,
there is a requirement for the researchers to stop and think about the status of the HR
practices. Best HR practices will help the organization in achieving radical improvement as
opposed to incremental ones. The examination recognized two arrangements of primary
factors, the traditional HR practices and the advanced HR practices. The paper discusses the
importance of training transfer and the role of human resources management in providing
effective training and development practices to the employees in IT/ITES industry.
Ronald (2016) in his study highlights the importance of lifelong learning for an organisation
to sustain in the market which is ever changing. He points out that such an organisation
should have options for a continuous training aid the or should have provisions to supply
training and education from outside. It can also even happen through informal means of
training and development activities. The study examines the benefits of a formal training
program in a service firm. According to the study employees were hugely benefited in terms
of improved satisfaction, enhanced effectiveness and performance, satisfaction from
providing high quality and creative service to client, proven potential for development of the
carrier, enhanced commitment to the firm and the investment that this made on the staff. This
also highlights the managerial and professional women’s participation in a variety of
educational programmes conducted by the organisation and usefulness and impact of these
kind of training programme.
Chang [2014] in their paper explores the way in which the different administrators certified
employees and managers perceive the value of getting their employees trained. The method
adopted for the study was in the interview where close group perspective was analysed and a
combination of academic and industry experts were interviewed for the perceived benefits of
a certification program offered by the company. The findings reveal a favourable perception
towards the certification program in terms of individual and professional development and
enhance the rate at which enrolment for these programs happen in an organisation. The study
was conducted in a casino, which was one of the most preferred gaming destinations in the
world. The study also highlights a phenomenal growth in the scale of performance of the
employees who have undergone training and development programs.
Research Methodology
1. Research Objective
2. Research Design
a. Types of Research
b. Sampling
3. Data Collection
a. Primary Data
b. Secondary Data
A) Methods of data collection
Primary data: Primary data is the data which is collected for the first time.
There are several methods of collecting primary data, particularly in surveys
and descriptive researches.
Important ones are:
1) Observation method.
2) Interview method.
3) Through questionnaires.
The method of data collection is primarily personal interviews. Data gathered
from the selected sectors includes interviews with, Managers, CEO/HR
managers, sector specific employer’s and employee’s associations. Case
Studies of best practices - a study of one successful woman manager who has
reached a senior managerial position, from each industrial sector.
Secondary data: Secondary data means data that is already available i.e., it
refers to the data which has already been collected and analyzed by someone
else. When the researcher utilizes secondary data, then he has to look into
various sources from where he can obtain them. In this case he is certainly not
confronted with the problems that are usually associated with the collection of
original data. Secondary data may either be published data or unpublished
data. Usually published data are available in:
Secondary data Collection Sources
1) Various publications of the central, state and local
governments
2) Technical and trade journals;
3) Books, magazines and newspapers
4) Review of Research Thesis
5) Review of Research Paper / Article
6) Review of Books
7) Review of News Paper Article
8) Important Reports prepared by research scholars, universities,
economists, etc. in different fields;
9) Public records and statistics, historical documents and other
sources of published Information.
10) Any type of Audio, Video or any form of authentic material
Secondary sources: A temporal analysis of data based on secondary sources
and existing macro/micro studies and literature to assess the situation. For
secondary data collection a framework and a list of sources and materials were
developed which was used for the analysis. For primary data collection sector
specific questionnaire and interview schedule will be developed.
