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.


between the experience and income.

1.4.3 a) Null Hypothesis: There is no significant relationship

between the experience and job satisfaction.


between the experience and job satisfaction.


between the job satisfaction and income.


between the job satisfaction and income.

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between the working condition and job satisfaction.


between the working condition and job satisfaction.

1.4.6 a) Null Hypothesis: There is no significant

relationship between the educational level and income.


between the educational level and income.


between the Incentives and job satisfaction.


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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