introduction and the design of the study -...
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CHAPTER I
INTRODUCTION AND THE DESIGN OF THE STUDY
1.1 INTRODUCTION:
Human Resources are considered as backbone of enterprise. It is man
who makes it possible to get more production from machine. Among the Four factors
required for development – task, men, money and material. It is the men or human
element which is required more than any other factors which determine the quantity
and quality of the performance and output.
The subject matter of Human Resource Management is human being,
employees of the organization because it is that part of management process, which
is concerned with the effective utilization of the labour resources of an organization.
In modern Industry, the human resource Management plays an
important role in promoting good relationship between labour and management and
smooth functioning of the organization. The success and growth of any organization
of Industry depend upon the effective use of its human resources. India is an agri-
based country and majority of the Indian Population has engaged in agricultural
operations.
As a result of a Industrial revolution, the Industrial growth of India has
attained a satisfactory level. The Government of India has been providing various
incentives to the new entrepreneurs to promote industrial units in the backward
areas of the country, the utilization of these resources are not encouraged due to
lack of proper Human Resource Management system. Each and every Industry
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including private sector in the country is providing employment opportunities to a
large number of people in its respective areas. The Private sector industries provide
employment opportunities to many people residing in and around Hosur City.
The present study highlights the Human Resource Trend in Private
sector in and around Hosur.
Human Resource Trends:
The resource of men, money, materials and machines are collected,
co-ordinated and utilized through people. These resources by themselves cannot
achieve the objectives of an organization. They need to be united by a team. It is
through the combined efforts of people that material and monetary resources are
effectively utilized for the attainment of common objectives. Without united human
efforts no organization can achieve its goals. All the activities of an organization are
initiated and executed by the persons who make up the organizations. Therefore,
people are the most significant resource of any organizations. This resource is called
human resource.
Human resources trend may be defined as “The knowledge, skills,
creative abilities, talents and attitudes obtained in the population”. From the
viewpoint of organization Human resources represent the people at work. They are
the sum total of the inherent abilities, acquired knowledge and skills as exemplified
in the talents and aptitudes of its employees.
According to Jucius, human resources or human factors refer to “a
whole consisting of inter-related, inter dependent and interacting Physiological,
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Psychological, Sociological and ethical components”. Thus, human resources
represent the quantitative and qualitative measurement of the work force required in
an organization.
Various Elements of Human Resource Management:
Human resources of an organization are the product of their biological
inheritance and interactions with the environment. Family relationship,
religious influences, caste or racial background, educational
accomplishments and organizational climate influence the attitudes,
behaviour and performance of human beings.
Human resources are heterogeneous. They consist of large number of
individuals each having a unique personality, different needs, attitudes
and values. Each individual has own physical and psychological traits.
Most of the problems of an organization are people-related problems.
These problems arise from the wrong belief that people are alike and
they can be treated identically. In order to make effective use of the
human resources, an organization must recognize and pay attention to
differences between individuals so that each person can maximize
his/her potential.
Human resources are dynamic and behave differently. They react to
the same situation in quite different ways. Even the same individual
may behave differently at two different points of time. It is very
difficult to predict human behaviour.
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Human resources are the most important element in an organization.
The effective utilization of all other resources depends upon the quality
of human resources.
Human resources have the greatest potential to develop and grow
provided the right climate is provided to them. An organization can
survive and grow if it has the right people at the right time working at
right jobs.
The term human resource is wider than the term personnel. Human
Resource includes all the dynamic components of all the people at all
levels in the organization whereas personnel mean employees working
in the organization.
Industries In And Around Hosur:
Hosur in and around industries has been the most important factor in
the development as well as survival of the human race. The growth of Industries was
phenomenal in Hosur. Particularly from 2000 to 2009.
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Growth of Industries in and Around Hosur
Year Number of Units
2000-2001 300
2001-2002 325
2002-2003 375
2003-2004 400
2004-2005 450
2005-2006 500
2006-2007 510
2007-2008 520
2008-2009 536
1.2 Statement of the problem:
The target achievement of any industry including Hosur Industries is
based on many factors and that include human resource management. To achieve
the goals of on organization, formulation of appropriate human resource policy
seems to be necessary. Any organization can achieve its aim with proper
management of his human resources.
The production of Hosur industries products is increasing year after
year in the country, even now the majority of the industries manufactures or
adapting traditional techniques in administering their human resources. So, the
quality of manufacturing product is not comparatively superior to the product of
advanced countries.
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Hosur is a major producing the components town in India. Industries
plays a vital role in the promotion and the development of economy of Hosur town.
The large number of manufacturing units in India, in General and Hosur in particular,
are unorganized units. Hence, no systematic policies are adopted in Manpower
planning, recruitment, selection, interview, training, performance appraisal and
promotion of workers in industries.
The Manufacturing units are mainly employing unskilled or semiskilled
employees who are neither educationally qualified nor technically experience. The
workers gain knowledge only by doing the work. They are paid wages on the basis of
the performance and experience.
So far, no systematic and specific study about human resource
management in Industries have been made. In this situation, the need to analyse
the problems of various categories of working employees in the Industries of Hosur
and evaluate the present system of human resource policies of Industries in general
and of these Hosur in particular is felt and hence the researcher has planned to
undertake this study.
1.3 Objective of the Study:
The present research endeavor was master minded with the
pretentious objectives set forth below:
1.3.1 To review the history and growth of Industries in Hosur.
1.3.2 To analyse the socio economic conditions of the workers of Industries in and
around Hosur.
1.3.3 To evaluate to job satisfaction of workers of industries in and around Hosur.
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1.3.4 To study the functional areas of Human resource practices in industries in and
around Hosur.
1.3.5 To offer suitable suggestion for improving the Manpower management in
Industries in and around Hosur.
1.4 Hypothesis:
The following Hypothesis have been set based on the objectives of the study.
1.4.1. a) Null Hypothesis: There is no significant relationship
between the sex and wages.
b) Alternative Hypothesis: There is significant relationship
between the sex and wages.
1.4.2. a) Null Hypothesis: There is no significant relationship
between the experience and income.
b) Alternative Hypothesis: There is significant relationship
between the experience and income.
1.4.3 a) Null Hypothesis: There is no significant relationship
between the experience and job satisfaction.
b) Alternative Hypothesis: There is significant relationship
between the experience and job satisfaction.
1.4.4 a) Null Hypothesis: There is no significant relationship
between the job satisfaction and income.
b) Alternative Hypothesis: There is significant relationship
between the job satisfaction and income.
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1.4.5 a) Null Hypothesis: There is no significant relationship
between the working condition and job satisfaction.
b) Alternative Hypothesis: There is significant relationship
between the working condition and job satisfaction.
1.4.6 a) Null Hypothesis: There is no significant
relationship between the educational level and income.
b) Alternative Hypothesis: There is significant relationship
between the educational level and income.
1.4.7 a) Null Hypothesis: There is no significant relationship
between the Incentives and job satisfaction.
b) Alternative Hypothesis: There is significant relationship
between the Incentives and job satisfaction.
1.5 Concepts and Definition:
1. Manpower Planning:
Manpower planning is a process by which an organization should move
from its current Manpower position to desired Manpower position. Planning
management strives to have the right number and right kind of people at right
places at the right time, doing things, which result in both organization and
individual receiving maximum long-run benefit.
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2. Recruitment:
Recruitment is the process of searching for prospective employees and
stimulating them to apply or jobs in the organization.
3. Training:
Training is the organized procedure by which people acquire
knowledge and /or skill for a definite purpose.
4. Performance appraisal:
Performance appraisal is a method of evaluating the behaviour of
Employees in the workspot, normally including both the quantitative and qualitative
aspects of job performance.
5. Promotion:
A Promotion is the transfer of an employee to a job which pays more
money or one that carries some preferred status.
6. Wage:
Wage is defined as the remuneration paid by the employer for the
services of hourly, daily, weekly and monthly of the employees.
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7. Workers:
It means a person (employed, directly by or through any agency
(including a contractor) with or without the knowledge of the principal employer,
whether for remuneration or not) in any manufacturing process or in cleaning any
past of the machinery process or in any other kind of work incidental to or
connected with the manufacturing process, or the subject of the manufacturing
process, workers include male workers, female workers.
8. Unorganized Unit:
Working in the Unorganized Unit means almost working without legal
protection, without job security and for low wages.
9. Incentives:
Incentives are variable reward granted according to variations in
achievement of specific results. Incentive plans are designed to play a casual role as
well as to reward the effect.
10. Compensation package:
1) A basic regular commitment in terms of annual/ monthly salary /
wage rate.
2) A security and benefit programme such as life insurance, health
insurance, retirements or pension plans, disability income program.
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3) Perquisites and working conditions such as paid vacation, holidays,
recreation facilities, cafeterias and special dinning facilities, air conditioning,
uniforms, company cars, office furnishings and so forth.
4) Incentives in the form of additional compensation, commissions, bonus
plans, standard hours, prizes, safety awards, suggestion system, profit sharing,
stock opinions etc.,
II Week:
It means period of seven days beginning at midnight on Saturday
night or the Chief Inspector of factories may approve such other night as in working
for a particular area.
1.6 Significance and scope of the study:
The present study will confine to Human Resource Management of the
Industry in Hosur. The study will be focused from these stand point of the
Management as well as the employees of the Industries.
The study does not include the other agency like industries association, the
Government and NGO‟s and the like, the significant of Human Resource Management
can be discussed at four levels. ie. corporate, professional, social and national level.
Corporate Significance:
Human Resource Management can help an enterprise in achieving its goal
more efficiently and effectively in the following ways.
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o To attract and retain the required talent through effective human
resource planning, recruitment, selection, placement, orientation,
compensation and promotion polices.
o To develop the necessary skills and right attitudes among the
employees through training, development, performance appraisal
and the like.
o To utilize effectively the available human resources.
o To ensure that the enterprise will have in future a team of
competent and dedicated employees.
Professional Significance:
Effective Management of human resource contribute to professional
smooth in the following ways.
To provide maximum opportunities for the personal development of
each employees.
To maintain healthy relationship between individual and different work
groups.
To allocate the work / assignment properly.
Social Significance:
Sound human resource management has a great significance for the
society. It helps to enhance the dignity of labour in the following ways.
To eliminate waste of human resource through conservation of
physical and mental work.
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To provide suitable employment that provides social and psychological
satisfaction to people.
To maintain a balance between the jobs available and the job seekers
in terms of number, qualification, needs and aptitudes.
National Significance:
The level of development in a country defence primarily on the skills,
attitudes and values of its human resources. Human resource management has
become very significant in reason decades due to following factors.
Growing expectations of society from employers.
Rise of professional and knowledge workforce.
Growth of powerful nation wise trade unions.
Increasing proposition of women in the workforce.
Rapid technological development like automation rapidly changing jobs
and skills requiring long term manpower planning.
1.7 Research Design and Methodology:
The present study is based on both Primary and Secondary data. The
primary data has been collected from workers and management of Industries in and
around Hosur by using the interview schedule method. Descriptive research is
considered more suitable for the study. Therefore, the study has been descriptive
and analytical. The secondary data has been obtained from the offices of various
agencies such as inspector of factories, and Sipcot office at Hosur as well as private
publication reports connected with industries.
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Primary Data: Being an empirical study, first hand data were collected through
sample survey and interview of experts in the field. The data relating to various
functions of human resource management were gathered from the representative of
the units in the study over with the aid of well-structured interview schedule. In the
process of setting objectives of the study and constructing the interview schedule,
the researcher discussed and collected all the relevant issues from industry, Hosur
Municipality connected various Government reports.
Secondary data:
The data collected from Inspector of factories and various Government
offices constituted the basic source of secondary data. The secondary data were also
collected from various standards text books, research articles, and internet, which
constituted a supportive literature for the purpose of making analysis and
suggestions.
Construction of Interview schedule:
With reference to the objectives of the present study, and based on
the reports relating to industries, a preliminary interview schedule was prepared
pretesting was done and after that the schedule was redrafted taking in to account
the views of the expert of industries, Government officials and academicians in the
view of wording, sequence, format and the like.
Pre-test:
The Pre-test was conducted for a period of one month, with 60
respondent in the study area, the pre-tested schedule was finalized after
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incorporating the necessary changes. A specimen of the interview schedule
administered to the industries is shown in the Appendix-I.
Study population:
The study population consists of out of 676 units available in the
Krishnagiri District, 536 units have been situated in and around Hosur as per the
classifications mentioned in the sampling design of the study.
Sampling Design:
In Hosur there were 536 registered units in the year 2009, out of 97
units coming under up to 50 employees category, 411 industries coming under 51 to
250 employees category, 28 units comes under 251 to 500 employees. Around
60,000 direct employees are working in and around industries of Hosur, in which
55% are male and 45% are female. In order to have a representative of sample of
the population, the stratified random sampling technique was adopted. For this
purpose, the entire population was divided in to three strata considering the nature
and size of the population, a sample size of 20% was considered adequate. These
are approximately 24864 workers (average of 256 workers) are working in factories
registered, approximately 33640 workers (average of 82 workers) are working in the
factories as per our classification mentioned further approximately 1060 workers
(average of 38 workers) are working in the factories mentioned as per our
classifications from the sampling design of the study. Proportionate stratified
Random sampling technique was adopted based on the average number of workers
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working in each stratum. Thus the sample will consists of 429 male workers and 321
female workers working in the private sector industries in and around Hosur.
Sampling design of the study – Employees
Classification
No.of industries No.of Male
respondents
No.of
female
respondent
s
Total No.of
Respondent
s
Population Sample
Up to 50
employees
97
(18.09%) 19 (18.09%) 292 219 511
51 – 250
employees
411 (76.70%) 82 (76.70%) 92 69 161
251- 500
employees
28
(5.21%) 6 (5.21%) 45 33 78
Total
536
(100%)
107
(100%)
429
321
750
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Period of the study:
The Primary data collected and used in the present research report will
cover a period of two years 2007-2009.
Tools and techniques:
The simple statistical tools like arithmetic mean, tabulation,
percentage and advanced tools like chi-square test, test of significance, factor
analysis, and correlation analysis have also been used by researcher to enrich the
analysis.
1.8 Field work and collection of Data:
After the preparation of the final interview Schedule, the researcher himself
personally visited and collected the data from the individual sample private sector
industries in the study area. The field work was made in two spells. The first one was
made during the period October 2007 to December 2007 was made during the
period June 2008 to November 2008. Since the interview schedule was in English,
the researcher had to explain the question in Tamil (Vernacular) also to obtain the
responses from sample units. After filling up the interview schedule, the researcher
ensures its correctness and completeness by carefully going through the filled in
schedule and getting necessary from the respondents.
Data Processing:
After the collection and editing of the data, they were processes with the help
of the computer. Basically, the data collected were analyses and frequencies were
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worked out category wise. Various statistical tools like percentage, ratios, and ranges
were used for the purpose of analysis.
1.9 Frame work of analysis:
In the present study, 17 components have been identified to study the job
satisfaction of the industries workers in and around Hosur. The components are
relationship with the management, the relationship with the company workers, the
relationship with other category workers the relationship with other unit workers,
allowances given by the unit, extra hour rate, bonus provided by the unit, benefits
such as sickness, medical and disable benefits, management encourage to suggest
for improvement, knowledge and experience are recognized and rewarded, the
functioning of workers committee in the unit, canteen facility in the unit, the views
of the workers considered by the management, workers proposal for self
improvement and given due weightage, the safety measures provided by the unit,
recruitment procedures adopted by the unit, selection policy of the unit, the freedom
given by the management in work place, the working conditions of the unit, the
recognition of the workers, consideration of workers welfare, leave facility and the
transport facility, offered by the units, In order to facilitate scoring each component,
a 5 point scale has been used. The 5 points of the scale are highly satisfactory,
satisfactory, moderately satisfactory, not satisfactory, and highly not satisfactory.
The scores allotted to these scales ranging from 0 to 4 are based on the respondent‟s
view. The worker gives highly satisfactory response to all the 17 components he will
be awarded the maximum of 116 scores and a respondent who has given highly not
satisfactory responses to all the 17 components, the maximum score based on 17
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components, given to him is 0. Hence the scores secured by the individuals
respondents will range from 0 to 116.
1.10 Limitation of the study:
1. The design of the research is descriptive, and therefore, the
approach to the human resource management is made at a higher narrative level,
exercising an in-depth case study or experimentation. It is beyond the scope of the
study to measure in concrete terms the extent to which the adherence of the
functions affects the working of industries.
2. The limitations and basis of sampling technique applied in the
present study may influence the findings of the study, despite every effort was made
to have a representative sample.
3. The data-gathering instrument is another source of error. The
interview schedule was for this study despite pretesting does remain a source of
error. Moreover, the translation of the questions in Tamil could create response
errors especially ambiguity in understanding the question as well as the answers.
4. It has been the experience of the researcher that data
collection in industries is very time consuming. The unit is almost a „one man – show‟
and consequently, the top management is not normally in a position to spare time
for responding to the questionnaire owing to his heavy schedule of engagements in
his business activities. Because of this, it was necessary to make at least 2 to 3 visits
to an individual unit to collect the required data.
5. The present study will have the normal limitations of time,
funds and other facilities commonly faced by a any researcher. The present study will
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mainly concentrate on Human Resource aspects of Hosur Industries and hence the
production, marketing, financial aspects of Hosur Industries are not going to
considered. The provisions of the study can entirely be dependent on the samples
and hence it cannot be generalized.
1.11 Scheme of Chapterisation:
The research work is branched off into seven chapters.
The first chapter Identifies and specifies the problem of the study,
lists the objectives set for research, outlines the scope of the study, defines the
operational terms used in the research report. It also describes the methodology of
the study, administration of sample survey, the method of analysis of data,
limitations of the study and the scheme of chapterisation.
Chapter II under the caption “ Profile of the industry and review of
literature” explains basic knowledge of the history of manufacturing of Private sector
industries in and around Hosur, and the profile of the sample units to facilitate a
better understanding of the research problem and review of Literature.
Chapter III bearing the title “Socio-economic conditions of the
employees” analysies the socio-economic status of the workers of Private sector
units in Hosur. It includes factorial analysis of democratic factors, and the
employee‟s opinion on human resource trends followed in Private sector Industries.
Chapter IV entitled “Job satisfaction of the employees in Private
sector industries” evaluates the workers attitudes towards satisfaction of their jobs.
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It includes component factor wise analysis, overall impact of components, and the
level of job satisfaction of the Private sector Industries.
Chapter V captioned “Various HR practices adopted in Private sector
industries” includes Demographic analysis of the employers and the Human
Resource Trends such as Man Power planning, recruitment, selection, interview,
compensation, training and performance appraisal being adopted in their
organization in Private sector industries.
Chapter VI bearing the title “Summary of finding and implications”
attempts to find out the view points of the study participants on the development of
their Private sector Industries and the suggestions for the scientific human resource
practices for the growth of Private sector Industries.
Chapter VII brings the research report to a suggestions and
conclusions by high lighting the summary of the survey findings with a view to obtain
answers to the questions raised in the statement of the research problems and
providing valuable suggestions for the development of the Private Sector Industries.
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