CHAPTER - 3

REVIEW OF LITERATURE
INROTD UCTION;

Literature Review chapter refers to the various research studies carried out in various
parts of our country. Extensive research studies have been carried out on these aspects
in India as well as foreign countries. On the contrary, we can find a lot of research
paper being published on the same. This study is an attempt made to refer the national
as well as international journals, articles, newspapers, periodicals, etc. This portion of
the research study will focus about the available literature worldwide on the
researches conducted in a concise manner. Though it may not be directly linked to the
research subject, but the inferences on each segment have given a path for the
completion of this research study. A generous attempt is made to review briefly some
of the relevant studies as follows:

1. Hax, Amoldo, C., A New competitive Weapon: The Human Resource Strategy,
Training and Development Journal, 1985, May, vol.39 (5), pp.76-82. This study
contended that the importance of human resources in business has been identified due
to recent competitive pressures and changing values in the workforce. A methodology
for enabling managers to translate the basic principles of human resource strategy into
pragmatic and concrete action programmes has been presented. It is indicated that this
strategy can be applied to selection and promotion, appraisal, rewards, management
development and labour relations.

2. Roback, Thomas, H., Personnel Research Perspectives on Human Resource

Management and Development, Public Personnel Management, 1989, Vol.18 (2),
pp. 138-161. The author has reviewed the literature in the field of human resource
management and development, with emphasis on training and evaluation, career
development systems and management, and discipline. Particular research patterns
focusing on public personnel perspectives have been emphasized and analyzed.

3. Helms & Marilyn M., A study on “Employee perceptions of the relationship

between strategy, rewards and organizational performance”. This study is published in
journal of business strategies. The study explores the relationship between
organizational strategy, reward practices and firm performance. Researchers have not
extensively investigated this potentially important topic. This paper presents some
initial empirical evidence that supports the nation that different types of reward

68 | P a g e
practices more closely complement different generic strategies and are significantly
related to higher levels of perceived organization performance. The researchers
suspect that certain reward practices may be associated with stronger organizational
performance based on the type of strategy being used by the firm. The use of reward
practice, which logically complements a specific organizational strategy, should serve
to motivate employees to help the organization, which performed at a higher level.

4. According to Lynette Harries in her article published in the International Journal of

Human Resource Management, Vol.12, Issue 7,2001, titled “Rewarding employee
performance: line managers’ values, beliefs and perspectives.” In her article, it
explores managerial perception of the effectiveness and fairness of individual
performance-related pay schemes. It draws upon findings from a two-part study of
middle managers’ interpretation and application of performance-related pay processes
in a variety of organizational contexts. The analysis reveals that middle managers all
too often do not share the principles or the stated objectives of the schemes, they are
required to operationalize. The conclusion of her article is that the importance of
managerial values and beliefs about rewarding individual contribution has been an
overlooked and underestimated dimension in the design and application of individual
performance related pay schemes (IPRP) despite the significance of the manager’s
role in their organizational effectiveness.

5. According to Puwanenthiren Pratheepkanth in his article published in Global

Journal of Management and Business Research, Vol.ll, issue 4, version 1.0, March
2011, titled “Reward system & its impact on Employee Motivation” in commercial
Bank of Sri Lanka Pic. In Jaffna District in Sri Lanka. The researcher had given a key
focus of recognition to make employee feel appreciated and valued. This research has
proven that employees, who get recognized, tend to have higher self-esteem, more
confidence, more willingness to take on new challenges and more eagerness to be
innovative. The study is based on reward system and the employee’s motivation. This
study covers only commercial bank of Ceylon Pic. Jaffna. The bank employees
reward system is analyzed; when the information obtained is looked into out of the
particular 28 employees have high motivation, at the same time 50 employees’
moderate motivation in reward system. But 22 employees are very lower motivation
regarding reward system, i.e. 78% employees are high and moderate motivation and

69 | P a g e
the rest 22% have replied unfavourably. The main aim of the study is to examine the
rewards and recognition has an impact on employee motivation.

6. According to Theresa M. Welboume in her article published in Human Resource

Management Journal, volume 51, issue 3, pages 309-311, May/June 2012, which is
also first published in Wiley Online Library on 25th May 2012, titled “HRM: The field
of dreams.” This article is filled with thought- provoking and also that lead to new
approaches to the human resources management field. The article also provides
practicing managers and academics with the latest concepts, tools and information for
effective problem solving and decision making in this field. It explores issues of
societal, organizational and individual relevance.

7. A survey on Total Health and Choice Benefits, which is published in Times Ascent
on Wednesday, November 2, 2011. Mercer’s Asia Pacific Total Health and Choice
Benefits 2011, survey report. Almost 900 employers (of which 87% were
multinationals) provide an exclusive insight into how employers are using health and
choice to cope with this demanding landscape. This year’s survey represents the first
time that the inter-wined issues of health and choice have been brought together to
review the current state of employers’ health and wellness programmes, what choices
they offer and future plans for their programmes. 81% of companies were concerned
about the current and future health of their employees. Health benefits costs as a
percentage of payrolls are increasing. 35% indicate, they are spending more than 6%
of payroll on the provision of their health benefits packages, while 10% respondents
are spending more than 15%.

8. An articles in Gulf News in UAE on Saturday, March 3, 2012 by Cleofe Maceda,

Senior Reporter in Gulf News. In this articles, a survey was conducted on Gulf
countries employees i.e. satisfaction level on salary payment. The survey was
conducted by GCC (Gulf Corporation Council). The study shows that employees in
the Gulf are often unclear about how compensation is calculated and allocated,
especially when it comes to allowances, benefits and variables pay. Workers in the
Middle East are 15% less positive than workers in Europe and U.S. about being paid
fairly when compared to their peers.

70 | P a g e
 9. Samuel Collins R., Incentive Programmes: Pro and Cons, Personal Journal, Vol.60
(7), July, 1981, pp. 571-575. The author has been identified two primary reasons why
many employee incentive programmes do not work because the programme does not
meet the needs and priorities of enough employees and the programme is improperly
designed or implemented by management. The author has suggested criteria for
successful incentive programme and even emphasized that management should take
all necessary steps for communicating all the employees before the implementation of
the programme.

10. Gilbert Siegel B., Compensation, Benefits and Work Schedules, Public Personnel
Management, 1989, vol.18 (2), pp. 176-192. The study of Siegel discussed
compensation, benefits and work schedules from the point of view of human
resources management, which revealed common areas of their impacts and effects.
These include employee morale, motivation and performance and workforce
recruitment, retention and turnover.

11. Manjeshwar Ramanand Ramakrishna, Human Resource Management Systems in

a Multinational Organization- A Case Study of Philips India Ltd, Ph.D. Thesis,
University of Pune, April, 1996. The author conducted a study on “Human Resource
Management System in a Multinational Organization- case study of Philips India
Ltd”, to examine impact of HRM practices on the improvement of operational,
managerial, and individual efficacy on the whole. In his findings there has a strong
bearing to the HRM practices as such for it vouches for the fact that the objectives of
the organization can be achieved well purely on the basis of a strong orientation of
HRM practices. He concluded that organizational goals are subservient to good HRM
practices.

12. Ravi D., New Age New Workers, Indian Management, October, 2001, pp.45-
48.The author has made a study relating to the human resources in the present
scenario. He pointed out that new economy demands new thinking and even
otherwise the machine era has ended being replaced by that of the mind. Managing
knowledge workers is a new challenge which HRD faces today. HR professionals
facing new challenges can be met by satisfying the employees by providing social
recognition, turning subordinates into fellow executives and by making employees as
partners.

71 | P a g e
 13. S.V.V.S.Vara Prasad, HR Practices and Business Performance, HRM Review,
May 2007. In this article, the author has been discussed that organizations can gain
competitive advantage by implementing successful HR practices. Such practices
consistently generate attentiveness on the part of employees to attain business goals in
the best possible and ethical manner. He also stated that the use of HR practices
contribute to enhance employee commitment and is in turn linked to higher levels of
productivity and quality of services.

14. Venkatesh R., HR Development Credit Bank, Indian Management, Sept 2007. In
his article entitled “HR’s new touch points” had discussed human resource
department’s ability to see beyond its traditional role and extended it across the
organization and has the ability to integrate various functions and process. He also
stated that HR plays a vital role in having the right people through whom strategies of
the organization will be executed.

15. Ferzana Rabia Jahani G., Changing Role of HRM, HRD Times, Sept.2006. In her
article entitled “Changing role of HRM”, outlines the changes required for HRM to
become a dynamic contributor to competitive advantage in the contemporary
knowledge-based business environment and also highlights the innovative HRM
practices being adopted by Indian firms to brace competition in the post-liberalization
scenario. She also discusses HRM need to be strategically directed towards
developing and sustaining organizational capabilities through activities that overlap
with traditional business functions such as finance, marketing, strategy and non-
traditional activities such as knowledge management.

16. Michael R. Carrell, Human Resource Management, Prentice Hall, Englewood

Cliffs, 1995, p.785. The author has observed, Sound human resource research can
significantly strengthen an organization’s human resource programme. Some specific
uses of research include measurement and evaluation of current personnel policies,
programmes and activities and appraisal of proposed policies, programmes and
activities.

17. Nishchae Suri, Trends in Compensation, Human Capital, Vol.ll, No. 10, March
2008, pp.45-46. Suri viewed that Compensation is becoming more important to the
new-age employees. Organizations have to create innovative compensation strategies
to attract, motivate and retain high quality talent. Companies are facing a huge
 challenge in keeping employees happy through compensation alone. In his opinion
organization have to develop a compensation strategy that catches top performers’
attention and sends a signal to mediocre performers, establishing well-defined rules
for performance that make clear how the rewards are gained, challenge the
entitlement mentality and optimize the organization’s compensation investment by
using variable pay incentives instead of focusing on base pay increases.

18. Rao Madhava P. (2005) Social Security administration in India- Study of

provident funds and pension schemes. According to the author, social security is
becoming a distinct part of social policy of India and the time has come to give a
serious thought to ever increasing social security needs of the population and it also
has diversified views on extension of social security coverage. The article says that in
the recent times the affordability and sustainability of publicly managed old age
income security provisioning has been under scrutiny.

19. Dr. A. K. Balyan, Managing Director & CEO, Petronet LNG Limited. Once said
in an article “Emerging HR practices in Indian Corporate Sectors”. Mostly employer
talks about corporate performance and growth, it is quite natural that the ultimate
focus comes on the people-“The Human Resource”. The present need is to look
closely at HR. He says a successful business model needs three major components
required for a successful organization. One of course Technology, which also needs
day to day, updates so as to be able to compete with others. The second one is work
practices, the systems and procedures to utilize that Technology effectively. There are
several organizations that have access to the best technologies as well as work
practices, but many of them do not perform equally well as other organizations. This
happens not only in the case of companies, but also in societies and countries. The
third most important component is that “People”. It is the people, who makes most
tremendous difference and who can also able to take the organization to a high level
of performance or bring them down to a mediocre performance. If people become the
differentiating factor, then one should all be conscious of doing everything to make
this component of people the most effective one.

Today when one can see a discretionary effort comes in and have started thinking of
people as investments. This is the change, which signifies as to how HR has made a
difference to the performance and growth of a company. Dr. Balyan concluded by

73 | P a g e
 stating that something different needs to be done by companies to add value to the
organization in terms of HR Developments.

20. In one of the research paper Zhou Jiang, Qian Xiao, Henan Qi and Lei Xiao
studied “Total Reward Strategy: A Human Resource Management Strategy going
with the Trend of the Times”, published in International Journal of Business and
Management,vol.l 1, November 2009, they examined total reward strategy is a holistic
approach aligning with business strategy and people strategy, it encompasses
everything employees value in their employment relationship like compensation,
benefits, development and the work environment. This newly coming management
approach acts according to the circumstance helps with costing savings, brings about
maximum return on the rewards strategy adoption and builds up employment brand,
all of which are likely to contribute to both short-term and long term goals of an
organization. As a reward strategy of effectiveness, it’s able to gain enough good
information of employees and conduct objective analysis, so that the organization can
make wise decisions and assess their influences internal and external.

21. Steven H. Appelbaum published a research paper on “Compensation Strategy:

Determinants and Contingencies in High-technology organizations”, in International
Journal of Manpower, vol.l2. Issue 8. The author analyzed that employees who
possess critical skills expect to be rewarded for their contributions and often go
looking for work elsewhere if they don’t get those rewards. In the high-technology
industry, that problem is amplified by the fact that these firms are concentrated in
/

certain areas, thus minimizing the moving costs incurred. These facts should guide the
human resource professionals responsible for compensation policies and practices in
the design of compensation programs adapted to the specific needs of the
organizations and talented high-tech professionals ultimately responsible for the firm
actualizing its mission. Compensation, in this regard, occupies as significant a niche
as articulated strategies and leading edge innovativeness.

74 | P a g e