Silo - Tips - Employee Welfare in Singareni Collieries Company Limited A Study

Volume: 2, Number: 1, January–March’ 2013 ISSN (P):2279-0950, (O):2279-0969
EMPLOYEE WELFARE IN SINGARENI COLLIERIES COMPANY LIMITED: A STUDY

Bh. Venkateswara Rao1 J. Durga Prasad2
ABSTRACT
Coal mining is one of the most arduous and hazardous operations as miners are exposed to dangers from various mining
hazards like explosions, inundations, roof falls, noxious gases etc. They are also prone to various diseases like
pneumoconiosis, mining nystagmus and dermatitis due to the nature of work. These characteristics of coal industry make
welfare more significant. In view of this, the present article reviews the welfare facilities provided by the company to its
employees and their family members. The areas covered in this article are subsidized canteens, education, literacy programs,
sports and recreation, housing, consumer cooperative stores, and cooperative credit societies. The other areas covered are the
services rendered by Singareni Seva Samithi and Women’s Cells and Associations.
KEYWORDS
District Literacy Mission, Medicare, Sports Authority of Andhra Pradesh, Singareni Seva Samithi, Special Welfare
Amenities Program, Singareni Employees Wives Association etc.
INTRODUCTION
Singareni Collieries Company Limited (SCCL) is a public sector company under the control of Andhra Pradesh State Government
(51% share capital) and Government of India (49% share capital). It is a coal producing company in South India and supplies coal
to power sector, cement industry and various other coal based industries in Andhra Pradesh, Karnataka, Tamil Nadu and Kerala.
The performance of the company is quite commendable as it made a profit of Rs. 268.11 Cr. in 2009-10. Further, it contributed a
huge sum of Rs. 886 Cr. to the State Government and Rs. 541 Cr. to the central government in the form of taxes and dividends. It
is to be noted that public sector undertakings are the front-runners in spending huge sums of money on employee welfare. SCCL
as a model employer provides various welfare facilities to its employees and in this regard, it spent Rs. 32,090 lakhs on employee
welfare during 2009-10 and the per capita employee welfare expenditure stood as high as Rs. 46,478. It shows that, the company
is employee welfare oriented.
NEED FOR WELFARE IN COAL INDUSTRY
Certain characteristics of mining industry in general and coal mining in particular make welfare more significant in this industry.
Coal mining in India is a highly labor intensive industry. For the size of investments and mining operations, the proportion of
manpower to be looked after and welfare facilities to be provided is substantial. Coal mining is one of the most arduous and
hazardous operations. Not only are miners exposed to dangers from mining hazards like explosions, inundations, roof falls,
noxious gases etc., they are also prone to many other hazards. Preventive action has to be taken against miner’s diseases like
pneumoconiosis, mining nystagmus, dermatitis, hook warms and the like. The day-to-day working environment is far from
congenial. Below ground, the miner is exposed to perpetual darkness, forced ventilation, water logging, humidity and extreme
temperatures. Even above ground, working conditions and other civic amenities are not up to the required level. All the same,
accidents leave a trail of misery on dependent families, and sap the morale of co-workers who all work and live together. Post-
accident care of victims and rehabilitation of disabled workers and bereaved families assume significance.
WELFARE IN SCCL
SCCL recognizes workmen as stakeholders in the company’s progress and welfare of workmen continues to be an important
corporate philosophy of the company. One of the important corporate objectives of SCCL is “to enable all the Singarenians to
lead healthy, peaceful, stress-free and prosperous lives”. The objective entails as humanizing working conditions, making mining
operations safer, and providing welfare facilities thereby improving the quality of work life of employees, which would be
conducive to higher productivity, self-development, and steady growth of the company. In pursuance of this objective, the
company generously extends several welfare benefits such as subsidized canteens, Medicare, education, sports & recreational
facilities, housing, consumer cooperative stores, cooperative credit societies etc. to its employees and their family members. In
this regard, the welfare practices undertaken by the company have been outlined hereunder.
CANTEENS
SCCL in accordance with the requirements of the Mines Act, 1952 and keeping in view the welfare of its employees provided 47
canteens in all the 11 mining areas. It also provided the required infrastructural facilities free of cost to run these canteens. Since
these canteens are highly subsidized, they serve almost all the eatables except meals and coffee at throwaway prices.
1Principal, Visakha Institute of Management Science, Andhra Pradesh, India, raobhv@yahoo.co.in

2Lecturer, P. B. Siddhartha College of Arts and Science, Andhra Pradesh, India, prasadjavaji@gmail.com
International Journal of Organizational Behaviour & Management Perspectives © Pezzottaite Journals 179 | P a g e
MEDICARE
SCCL has a generous Medicare scheme for its employees, their family members and dependent parents, which can be availed in
the company hospitals, and at super specialty hospitals in Hyderabad. Medicare is also extended to all retired employees and their
spouses at par with those in service. In SCCL, there are six Area hospitals, one main hospital at Kothagudem, and twenty-six
dispensaries with a bed capacity of 843. Staffed by qualified male and female doctors, these hospitals treat patients with utmost
care and attention. Wherever, specialized treatment is required, for either employees or their dependents or retirees, patients are
referred to super specialty hospitals such as Osmania General Hospital (OGH) and Nizam Institute of Medical Sciences (NIMS)
in Hyderabad. The company also provided accommodation (10 rooms) to employees and their family members at Ramanath
Ashram near Osmania General Hospital besides a hall on the second floor of Siva Ganesh Choultry near NIMS, which can
accommodate 25 people at a time. In short, much attention has been paid to increasing availability of medical facilities both
quantitatively and qualitatively.
EDUCATIONAL FACILITIES
SCCL takes special interest in the overall development of the children of its employees. In pursuance of this objective, it set up 11
schools, which include both high schools and upper primary schools. It also set up two colleges for women out of which one is a
junior college and the other is a degree college. Besides the above, it established one polytechnic college for the benefit of the
children of employees. These schools and colleges stand tall for their excellence in academics, arts, sports, and cultural activities,
thus fulfilling the important objective of all round development of students.
SCCL also grants scholarships to meritorious students who secured admission in engineering and medical courses subject to the
condition that they get ranks below 2000 in the EAMCET / IIT entrance. The company pays a scholarship amount of Rs. 6,000
per annum, per student, and the scholarship is continued until the completion of the studies. Table-1 shows the scholarships
granted to the children of employees for the period from 2002-03 to 2009-10. The table shows that the number of scholarships
awarded ranged between 20 and 36 during the period understudy.
Table–1: Scholarships Granted between 2002-03 and 2009-10
No of Students Awarded
Year
Scholarships
2002-03 22
2003-04 20
2004-05 36
2005-06 27
2006-07 28
2007-08 30
2008-09 26
2009-10 25
Sources: www.scclmines.com
The company in order to encourage the brilliant and meritorious wards of employees and to motivate them to improve their level
of excellence grants Rs. 10,000 per annum as additional scholarship to each student subject to his/her admission in BITS Pilani
through BITSAT. It is in addition to the scholarships payable to students as cited above. It also extends financial assistance (Rs.
12,000 each) to those who qualify in the civil services main examination, subject to a ceiling of 10 persons per year.
SCCL also grants 50 per cent of tuition fee and hostel fee subsidy to the children of certain categories of employees such as coal
loaders and coal mazdoors when they get admission and study in corporate Junior colleges. The eligibility for availing this facility
is subject to the fulfillment of two conditions: (a) The wards of employees should have studied up to SSC in the schools run by
the company (b) They should have secured 500 and above marks in the SSC examination. Overall, 51 wards of employees were
benefited under this scheme up to March 2010.
LITERACY MISSION
A decade ago, illiteracy was rampant in SCCL. A survey conducted in 2001 revealed that about 33,860 workmen were illiterate
who could not read or write Telugu. The company in order to achieve total literacy among employees started organizing literacy
classes in coordination with the concerned “District Literacy Mission” to make the illiterate workmen literate on a time bound
basis. It also engaged a professional organization called M/S LEADS to conduct literacy classes at the work place, an hour before
the beginning of each shift for the benefit of illiterate workmen. All the same, the teachers who work in the educational
institutions of the company undertake special classes for illiterate workmen at regular intervals. Owing to the efforts of the
company, all the workmen were made literate by March 2010.
SPORTS AND RECREATION
‘Health is wealth’ is not simply a proverb, but a fact. A healthy body bears a healthy mind, and obviously, sports are a prime
contributor to the health of people. SCCL as an organization with progressive outlook has laid great emphasis on the promotion of
sports. The company conducts tournaments like-foot ball, cricket, kabbadi, shuttle badminton, Lawn tennis, chess, ball badminton,
caroms etc., every year and to the winners, it presents mementos. It also encourages its employees to participate in the Inter-
district and state level tournaments conducted by the Sports Authority of Andhra Pradesh (SAAP).
The players from the company participated in these tournaments, and won many medals. It shows that the company has made
great efforts to develop sporting culture among employees and their family members to build a healthy organization. Regarding
recreation, it provided ten community halls and thirty-six recreational clubs for formal and informal get-together of employees
and their family members. Further, it arranged seven non-A/c rooms on a regular basis at Pushpagiri Trust Choultry in Tirumala,
the abode of Lord Balaji. When employees go on pilgrimage to Tirupathi, they can make use of this facility.
HOUSING
Among the necessities of life, housing is very important and it comes next only to food and clothing. In developing countries like
India, housing has been a social problem affecting all sections of population in some way or the other. Since the health and
efficiency of workers are directly influenced by the type of houses they live in, SCCL accorded top priority for the construction of
housing quarters and the company provided as many as 50,540 quarters to its employees up to March 2010. It is expected that
every worker will be provided housing facility in about a decade. All the housing quarters are well furnished, and they are
provided with individual water taps. The company also provided as many as 4,500 community taps in the housing colonies and
the colonies are well connected by roads.
CONSUMER COOPERATIVE STORES
Consumer cooperative stores are of immense help to workers and employees. The access to these stores helps in eliminating
intermediaries besides providing the necessary consumables at less than market prices. The company established “Singareni
Collieries Cooperative Central Stores Limited”, popularly known as Singareni Super Bazaar. The required infrastructural facilities
like buildings and furniture are also provided to the Super Bazaar. The Super Bazaar runs 46 sales depots and the depots sell all
essential commodities of daily use and cosmetics at less than market prices, thereby providing value for money to the customers.
CO-OPERATIVE CREDIT SOCIETIES
SCCL has laid emphasis on increasing the number of cooperative credit societies in coalfield areas and as many as 49 such
societies are functioning in the mines and departments of the company. These credit societies grant loans up to Rs. 1.25 lakhs to
each member employee for meeting the various purposes of the latter such as children’s education, purchase of two-wheelers etc.
The company charges 12 percent interest on these loans and the loan amount is recovered in 24 or 36 equated monthly
installments. It shows that the company has made concerted efforts to extend credit facilities thereby freeing the workers from the
clutches of moneylenders.
SINGARENI SEVA SAMITHI
Singareni Seva Samithi (SSS) is a social service organization formed within the company to undertake community development
activities in the coalfield areas. The Samithi organizes free coaching camps to the unemployed children of employees to enable
them to participate in police and army recruitments. When recruitment for these positions takes place, the candidates are
reimbursed two-way fare and the miscellaneous expenditure incurred by them for their stay at the place of selection within certain
limits. The Samithi also trained 5,989 candidates for police and army recruitments up to 31 st March 2010 out of who 723 was
selected so far. Further, the Samithi in order to make the educated but unemployed children of employees as self employed
undertakes training programs free of cost in 13 categories including photo lamination, screen printing, dress making, electrical
courses etc in the coal field areas with the help of Khadi Gramodyog Mahavidyalaya, Rajendra Nagar, Hyderabad. The efforts of
the Samithi are fruitful as 25% of the trained candidates (1,547 of 6,187) became entrepreneurs and started earning on their own.
SPECIAL WELFARE AMENITIES PROGRAM (SWAP)
SCCL launched a unique scheme under the title-“Special Welfare Amenities Program” (SWAP) in 1997-98. In SWAP, both
colony representatives (workmen) and management decide on the works to be carried out in housing colonies and the works
include provision of water, power, street lights, drainage facilities, sanitary lines, removal of garbage, replacement of doors and
windows, construction of roads, establishment of sulabh toilets, maintenance of parks and playgrounds. The company also makes
separate budgetary provisions for the timely completion of these works due to which hygienic conditions of living are created in
the housing colonies.
INCULCATING HEALTHY PRACTICES AND HABITS
The company counsels its employees about the need for giving up bad habits such as smoking, alcoholism, gambling and Gutka
chewing. It also undertakes social campaigns on issues like malaria prevention, importance of sanitation and nutrition, diabetes
control, prevention of heart diseases and HIV/AIDS to bring greater awareness about health and human development. In short, the
company not only encourages its employees to give up bad habits but also educates them about the adverse impact of bad habits
upon their health.
WOMEN WELFARE
The company is committed to the welfare of women employees as well as the wives of employees as evident from the “Corporate
Women Cell” it constituted at its headquarters in Kothagudem and the women cells it constituted in all its mining areas. It also
formed “Singareni Employees Wives Association” (SEWA) in the coalfield areas with active participation of wives of employees.
These cells and associations undertake different programs for the benefit of women employees. The Corporate Women Cell
celebrates the International day for women on 8th March every year by conducting a variety of entertainment programs such as
quiz competitions, sports & cultural events, and presents mementos to the first three winners. All the same, the women’s cells of
different locations look after welfare, improvement in working conditions, and redressal of grievances of women employees
relating to their employment. The wives association also educates and enlightens women employees about the need for health &
hygiene, literacy, children’s education, safety and post-retirement planning. The collective role played by these cells and
associations received wide applause from employees, their families, and the management of SCCL.
CONCLUSIONS
In India, public sector undertakings are model employers, as they are known for their liberal employee welfare practices. SCCL
the giant public sector enterprise as a model employer provides various welfare facilities to its employees. However, the company
needs to reinforce the welfare programs continuously as welfare is an important factor of industrial relations, the extra dimension,
giving satisfaction to the workforce in a way, which even a good wage cannot. To sum up, SCCL is truly employee welfare
oriented.
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6. Garewal, K. S. (1978, July). Dimensions of welfare in coal industry. Vikalpa, 3(3), 73-177.
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expenditures in Karnataka state road transport corporation. Indian Journal of Industrial Relations, 38(4), 525-535.
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9. Annual reports of SCCL from 2002-03 to 2009-10.
10. HRD Bulletins of SCCL.
11. Retrieved from www.scclmines.com
*****
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GREEN HRD PRACTICES AND INNOVATIVE HRD SKILLS

Nitin Nayak3
ABSTRACT
Employers are realizing that the success of an organization relies on more than hiring qualified candidates. Effective human
resource (HR) planning and management is required at all stages of an employee’s corporate lifecycle to help ensure employee
growth and satisfaction. Employee satisfaction is vital to the success of an organization because of its direct impact on
productivity. When employees are satisfied, they are more likely to produce high quality work, optimize performance, and
exercise more critical thought and creativity. This combination of high satisfaction and maximum productivity amounts to
employee engagement.
KEYWORDS
Green HRD, Employee, Benefits, Planning, Knowledge, Performance etc.
INTRODUCTION
Engaged employees are invaluable assets since they are motivated to perform to the Highest of their abilities because of their
dedication and voluntary commitment to the success of the organization. Companies who effectively cultivate employee
engagement benefit from low employee turnover, greater customer satisfaction, a cohesive corporate culture, improved
performance and communication, and higher employee commitment to the core values and objectives of the organization.
While there are a variety of unique methods to carry out HR functions, the true value of these practices is in their tailored
structure to support the unique goals, corporate culture, and objectives of each organization. By choosing appropriate methods and
incorporating them into every day activities, HR practices become meaningful processes that reflect the corporate culture, clarify
the roles and responsibilities of employees, and demonstrate how each individual’s contributions tie in to the overall achievements
of the organization. The best practices featured in this report should not be considered as pre-established solutions to address HR
challenges.
Rather, they should be regarded as problem solving techniques that take into consideration employee engagement and corporate
culture while supporting the core values and business objectives of the organization. Committed to ongoing HR excellence and
improvement, the organizations profiled in this report were selected based on the results of their employee satisfaction scores and
HR practices. Using this assessment and personal interviews, ECO Canada has documented several HR strategies implemented by
these organizations.
STAFFING & RECRUITMENT
With a staff of well over a hundred employees and averaging a growth of 30% per annum in recent years, Rescan has developed
an effective recruitment strategy to attract qualified workers who are committed to the organization’s goals. A key component of
the process relies on hiring individuals who share the same values as the company and demonstrate key attributes that include
flexibility, resilience, and commitment to excellence and dedication.
The recruitment strategy comes into play even before individuals enter the selection process. In order to attract individuals who
share the same environmental leadership values, the company actively markets its achievements and awards to the public to raise
its employer brand awareness. This provides candidates with a better understanding of the corporate culture and in turn, helps
focus and reduce the candidate pool by appealing to a particular type of individual. The company’s job postings further reflect this
strategy by carefully articulating the nature of the work and the desired behavioral competencies in addition to identifying
mandatory technical skill requirements.
Once short-listing is complete, pre-screening telephone interviews are held with all candidates who successfully meet the
requirements. This step aims to quickly identify the applicant’s outlook on work, their interest in joining any company.
Candidates who successfully complete this stage go on to participate in a number of face-to-face interviews with a selection of
senior managers. This process acts as a safeguard by considering the perspectives and feedback of multiple individuals when
assessing a candidate is fit with the organization.
To ensure the most appropriate methods of sourcing and attracting qualified candidates are used, the agency considers the
following details for each position: level of entry (junior, intermediate, and senior), level of education (degree, diploma),
professional association, and technical requirements (Engineer, GIS tech). Using this information, the company determines which
job boards, communication channels, and advertisement strategies are best for targeting candidates with the required skill sets.
Many consultancies firms providing businesses, governments, and organizations with expert advice, information, and tools to
assist with the development and implementation of sustainable policies and practices—offers internships to Masters level
3Director, Bharati Vidyapeeth University BVIMR, New Delhi, India, drnayaknitin007@gmail.com
university students as part of its recruitment strategy. Using the internship program, organizations can target students who excel
academically and provide them with the opportunity to obtain practical work experience. This helps to train and develop the skill
sets of interns at an early stage of their career while giving the company an opportunity to gauge the intern’s skills, abilities, and
inner drive. The program has proven beneficial to both the interns and the company, and is one way Stratos is helping build the
capacity of new graduates in the environment industry.
For instance: Terrapex Environmental Limited. Appreciates the impact that a well-structured orientation process can have on new
employees and their ability to successfully integrate into the workplace. To help them get off on the right foot, Terrapex has
created a detailed New Employee Orientation Checklist that helps new employees learn about basic workplace operations with the
assistance of various staff members. On their first day, all new employees receive the checklist as part of their orientation
package. This checklist ensures that the employee receives information regarding the organization and department, internal
network, passwords, HR policies and paperwork, safety equipment and training, and standard processes. However, rather than
learning everything from their supervisor, the checklist requires new employees to consult with co-workers from various
departments to learn about each topic.
For example, Human Resources will help the employee complete induction paperwork while a senior field employee will conduct
the health and safety training. Once a topic is covered, the new employee reports back to his or her supervisor who then checks off
the task as completed. Upon completion, the orientation checklist is kept on record in the employee’s file .This system helps
introduce new employees to staff members in other departments and guarantees that the most knowledgeable individuals on
specific topics are training employees in the appropriate areas.
NEW HIRE PLANNING
Over the years, TERA Environmental Consultants has fostered a culture and structure that allows self-directed and engaged
employees to find their perfect niche within the company. However, this can be difficult for new graduates as their professional
interests evolve with exposure to diverse projects, skill sets, and career options within the organization. To help support them in
identifying their niche area, TERA pairs each new hire with a senior mentor to receive coaching and career planning support.
By helping new hires discover their interests and professional goals at an early stage of their career, the company can begin to
assist them with structured career development. This is done with the support of mentors who match the professional goals of new
hires with the company’s objectives. By providing new graduates with this information, mentors can further help them become
more self-reliant and self–directed in their learning, resilient to change, and encourage skill development through structured
practice and experience.
This information is further expanded upon during interviews using questions that ask candidates to describe their interests and
reasons for volunteering, previous volunteer experience, and their ability to contribute to the organization. Management also uses
this opportunity to reinforce and clearly communicate the company’s vision and core values. This provides potential candidates
with an opportunity to reassess their fit and ensure their personal values also align with those of the organization.
DURING THE FIRST STAGE OF THE INTERVIEW PROCESS, ALL CANDIDATES ARE INTERVIEWED BY
MULTIPLE MEMBERS OF THE TEAM
Many corporate rely on the perspectives and opinions of its staff to help ensure that new candidates are a good fit for the position,
department, and organization. This is done using a three-stage group interview approach that includes the feedback of multiple
employees of whom the new hire will be working with. During the first stage of the interview process, multiple members of the
team that the candidate would eventually be members of Candidates who successfully advance through the initial screening
process receive a second interview conducted by the team manager interview all candidates.
Prior to sending a candidate to the final interview stage, all team members who helped with the interviews share their opinions
with the team manager and discuss how they feel about the candidate’s ability to work with the team and their compatibility with
the workplace culture. Based on the team discussion, final candidates are selected to advance to the final stage of the interview
process. The third interview is with executive management, most often the President and CEO. This step helps ensure that all
candidates meet the corporate-wide expectations for employee ‘fit’ and they align with their vision of a perfect Intelex Team
Member Training & Development.
EcoMetrix believes that hands-on experience is the best way for staff to develop professionally. To help encourage this
professional growth in junior and intermediate employees, EcoMetrix includes them in challenging and complex work
assignments shortly after they start with the company. Although these employees have little work experience, EcoMetrix believes
that their direct involvement plays an important role in broadening their skill sets at an early stage of their career and instills a
desire to take initiative and advance in the company.
THREE IMPORTANT STEPS OF SAFETY MENTORING PROGRAM
Some companies have taken proactive measures by introducing a formal three-step safety mentorship program. The purpose of
this program is to ensure that employees are conscious of the risks and hazards associated with fieldwork and are well trained to
perform a variety of job related tasks in a safe and reliable manner.
Step One: Prior to performing a particular task for the first time, employees must observe that task being performed. During this
step of the safety program, the supervisor must explain the process involved, advise the employee of any risks, and provide the
employee with an opportunity to ask questions. Once the employee and supervisor both agree that, the employee fully understands
the task they both sign off.
Step Two: During the second step of the safety program, the employee assists the Supervisor in completing the task. This
provides the employee with an opportunity to practice and receive feedback on the required skills. Once the step has been
completed to their satisfaction, both the employee and supervisor sign off for a second time.
Step Three: The final step of the process requires the employee to complete the task independently while under observation from
the supervisor. This allows the supervisor to provide the employee with feedback on his or her performance. Once the task has
successfully been performed, both the employee and supervisor sign off for a third time and the three-step safety mentorship
program is complete.
TRANSFERRING SENIOR’S KNOWLEDGE
With most senior staff members holding advanced degrees at either the Masters or Doctorate level–along with many years of
experience working on diverse complex assignments–the company has made its mentorship program a key priority.
As part of the program, each senior staff member is responsible for the professional and personal development of one or two
junior/intermediate employees. This ratio provides many opportunities for interaction and results in quick staff development
through Progressive learning.
The mentorship program also supports the company’s goal of instilling a sense of personal responsibility for one’s own
performance management. As part of the mentorship role, senior staff encourages employees to take initiative of their careers by
identifying opportunities to be more involved in company operations, discovering new projects; and determining skill sets that
they deem important and want to improve. Rather than relying solely on the guidance of mentors, employees must also
communicate their interests and outline how they can be better supported. To assist with these initiatives, mentors help employees
plan and set long-term career objectives to help staff achieve their goals.
STRATO’s ACADEMY
The ‘Stratos Academy’ is a series of half or full day training sessions that occur three or four times per year. The sessions are
hosted by fellow Stratos employees and are designed to help staff master skills that are used in everyday activities but not always
covered in standard training programs. Previous sessions have included topics such as proposal writing and management systems.
The Academy also assists presenters by providing them with the opportunity to develop their skills as group leaders and trainers.
The ‘Stratos Forum’
The ‘Stratos Forum’ is a bi-monthly opportunity for teams to present information on projects to their colleagues and share best
practice insight. This initiative keeps staff informed about current projects and provides them with a venue to ask questions, share
insight, and discuss how to maximize the impact of the work. This activity also assists presenters by providing them with the
opportunity to develop their skills as group leaders and trainers.
In-House Seminars
Sharing and building knowledge among employees is a key priority at Terrapex Environmental Limited. In support of this
initiative, mid-level employees arrange or present In-house training seminars over the lunch hour every six to eight weeks.
Presentation topics are chosen based on employee suggestions, requests, and need to- know information. Previous topics have
included: Gastech care and maintenance, utility locates, and new PCB regulations.
Communications
Employing over 7,000 people who operate from more than 160 offices located throughout Africa, Asia, Australia, Europe, North
America and South America, Golder Associates relies on innovative technology to maintain open communication and dialogue
among employees.
To support this initiative, Golder developed an extensive intranet called GoldNet that, among many other things allows employees
to access important company notices, read about project wins, find common administrative documents and forms, zero-in on
home office information, complete timesheets, track project costs, and find colleagues in other offices.
Social Hours
Following these highlights, employees have the opportunity to socialize, enjoy refreshments, and occasionally lunch is provided.
To add a special twist, these meetings also recognize and promote the diversity of cultures within the organization. Often, Social
Hours take on a unique cultural theme that allows employees to learn more about the backgrounds of their colleagues. For
example, Fielding employees celebrated the Chinese New Year in their February meeting with traditional decorations, food,
music, and group festivities. The June Social displayed the Maritimes.
BECAUSE EMPLOYEES ARE VIEWED AS THE HEART AND SOUL OF THE COMPANY, SENIOR MANAGEMENT
STRIVES TO INCLUDE ALL OR THE MAJORITY OF EMPLOYEE PERSPECTIVES WHEN MAKING IMPORTANT
DECISIONS
Obtaining employee feedback and perspective is an important component of the decision making process at EcoMetrix. Because
employees are viewed as the heart and soul of the company, senior management strives to include all or the majority of employee
perspectives when making important decisions.
To encourage open communication and employee involvement, EcoMetrix hosts bi-annual “blue-sky” meetings. These moderated
and informal meetings provide staff with an opportunity to interact with one another and discuss overarching goals and future
objectives of the company. The meetings are also used as a forum to discuss significant company decisions that may personally
affect staff. As an example, when EcoMetrix was purchasing a new office building, senior management consulted staff and
invited twelve of the fifteen staff members to tour four of the short-listed buildings before making a decision.
Although the evaluation process is valuable in itself, Maxxam Analytics goes beyond to demonstrate the significance and
importance of the process to its employees by sharing the aggregated survey results—whether scores are high or low. This act of
transparency helps employees understand the rational for upcoming HR initiatives and demonstrates how employee feedback is
considered and used when addressing HR improvements.
Each office receives a tailored in-house presentation given by the Vice-President of Human Resources who discloses the results
on a company-wide scale and breaks down individual scores for the specific office location. Not only do the results highlight
important information for the current year but trends using historical comparisons from the previous two years are also discussed.
Following the presentation, employees are informed of upcoming HR initiatives for the New Year and are provided with an
opportunity to ask questions.
PERFORMANCE MANAGEMENT
Following the Sharing of Ideas, Each Group Engages in a Collaborative Discussion to Evaluate All of the Ideas and Develop
Preliminary Plans to Implement the Best Ones.
Brain Storming Workshops
To support the company’s innovative and progressive culture, Fielding Chemical Technologies hosts brainstorming workshops
with its employees twice a year. These workshops are used to get employees thinking about continuous improvement through
collaborative discussions.
The discussion begins with a brief explanation of the topic and is then opened up to each participant to provide one idea. This
process continues until all ideas have been expressed, and every idea is recorded and grouped into similar categories. Following
the sharing of ideas, each group engages in a collaborative discussion to evaluate all of the ideas and develop preliminary plans to
implement the best ones.
To evaluate performance, the team frequently engages in collaborative discussions to outline project objectives, areas of
improvement, and individual roles and responsibilities. This flat hierarchical structure allows each team member to provide
constructive feedback and present recommendations and/or suggestions to the team. Rather than relying on the guidance and
feedback of the project manager, this structure places accountability on each individual and encourages the team to work as a unit
while utilizing each other’s skills.
SUPPORTING PROFESSIONAL DEVELOPMENT
The professional growth and on-going training of employees is a top priority for Stratos. To support this, the company has
incorporated professional development components into HR policies and its performance appraisal process. This places
accountability on both the employee and manager to ensure that appropriate training and skill set development is received on an
annual basis.
POOLING RESOURCES
Many reputed companies providing specialized environmental consulting services to help expand and diversify the skill sets of
employees, sometimes these companies relies on a pooled resource structure. This type of structure allows project managers to
assemble teams using any available staff members in the organization.
This is done by accessing an on-line company intranet with a calendar-scheduling tool that lists all of the company’s active
projects and the staff members who are booked to do the work. While referencing this resource, project managers can see the
project status and workload of all staff members and then assign available individuals to work on their project. This structure
provides staff members with the opportunity to work with multiple managers on a variety of projects for many different clients. It
also benefits junior employees since they avoid being ‘pigeon holed’ into one specific type of work.
ORGANIZATIONAL SUPPORT STRUCTURE
The majority of project planning and decision-making occurs at the Project Coordinator level, with two other levels that provide
support, direction, and expertise. For additional support, ranging from administrative to strategic planning, Coordinators can
consult the Core Support Team. This team includes three staff Directors who specialize in the areas of finance, internal
operations, and policy.
Throughout the year, project teams meet with members of the Core Team on a quarterly basis to discuss the project’s direction,
objectives, and strategy. Project Coordinators also rely on the assistance of over 250 volunteers with the EAC. To help carry out
frontline activities, connect with the grassroots, and set strategic priorities, Project Coordinators work closely with their volunteer-
run action committees. Volunteers play active roles throughout the organization by assisting with event and outreach initiatives,
supplying special skills, report writing, and sub-committee planning.
360 DEGREEFEEDBACK
Employing over 1,600 employees in 26 laboratories and service centers across Canada, Maxxam Analytics recognizes the
importance of developing knowledgeable and skilled senior leaders throughout the organization. To accommodate unique
developmental needs, workplace demands, and contexts for learning companies relies on a 360-degree feedback tool. Every two
years, all Vice-Presidents, Directors and General Managers in the company participate in the assessment, which consists of self-
ratings, peer evaluation, and upward evaluations.
Although it is an extensive and lengthy process, the tool provides these individuals with an all-around perspective that clarifies:
how others see them, feedback on their skills and abilities, and insight into their communication styles. Using this information, a
gap analysis is performed to identify areas of improvement that require additional training or coaching.
R&D COMMITTEES
Due to the competitive nature of the industry, Intelex Technologies Inc.—a software solutions provider for environmental,
quality, health & safety and businesses performance management—continuously immerses its employees in new and rapidly
evolving ideas. To help reduce turn-around time and streamline the development of products from concept to commercialization,
the company relies on the efforts of its Research and Development (R&D) Committees. The R&D Committees consist of
employees from various departments, backgrounds, and disciplines who collectively work on the planning and execution of a new
product. They are completely self-managed and responsible for overseeing all stages of the product development cycle including
research, development, testing, implementation, and maintenance.
ORGANIZATIONAL TRAINING & DEVELOPMENT PROGRAM
Fielding Chemical Technologies– a cutting edge Canadian family-owned chemical and refrigerant recycling company– recognizes
that employees are one of the best resources to collect new ideas regarding company improvements. Because they perform the
majority of “hands-on” work and act as experts in their fields, the company places high value on the suggestions and
recommendations of employees regarding company operations. To ensure these new ideas are heard, Fielding Chemical
Technologies relies on its IMPROVES (Ideas, Methods, Processes, Operations while Valuing the Environment and Safety)
program.
The goal of the IMPROVES program is to encourage creative, innovative, and resourceful thinking while providing a forum for
employees to share ideas with management. When an employee has an idea that they believe will save the company money or
generate additional income, they can present their idea by submitting an IMPROVES form which is tracked and monitored.
These ideas can range from suggesting new processes to streamline operations or providing recommendations to improve the
efficiency of current processes and/or production equipment. Management separately evaluates each idea and if applicable and
feasible, the development is put into place. Following implementation, the savings and/or revenue generated by the idea is tracked
for one year. If the development is successful, the company shares up to 10% of the savings/increased revenue with the individual.
On average, employees have received between $1,000 and $1,200.
One outstanding example of this program is an employee who suggested an equipment modification designed to increase
production yield. What initially seemed like a small improvement resulted in a combined cost savings and increased revenue for
Fielding of over $100,000 in one year. To celebrate this achievement, the employee received a cheque for $10,000 at Christmas
time.
MOTIVATION BY PERSONAL GOALS
In many organizations, project goals and objectives are determined and outlined by management without the inclusion of
employee opinions. At Ecology Action Centre (EAC), projects are often initiated at the grassroots level and project coordinators
are empowered to set their own project goals. This is possible in part because EAC and its employees share the same vision and
purpose to create a more sustainable environment.
An example of this mutually shared values system is the group of volunteers and staff who realized their personal goals of
increasing the prevalence and importance of recycling in Nova Scotia by launching Nova Scotia’s first paper recycling program.
This work not only supported EAC’s mandate, but it was instigated and propelled by the personal aspirations and passions of the
people involved. Other examples of projects that were proposed and developed on the grassroots level include:
Protecting and restoring over 30 hectares of ecologically significant Bay of Fundy salt marshes through the Cheverie
Creek pilot salt marsh restoration project. • Completing tidal barrier audits for the Nova Scotia portion of the Minas
Basin and Bay of Fundy allowing the identification of priority restoration sites Initiating and delivering the HRM by-
law restricting the cosmetic use of pesticides, reducing restricted pesticide permits by 80% since 2004.
YOUNG PROFESSIONALS GROUP
Urban & Environmental Management Inc. (UEM) recognizes the positive effects generational differences have on diversifying
workplace communication and operations. After hiring several new, younger employees and witnessing how their fresh
perspectives contributed to the company’s baby boomer-dominated workforce, UEM invited all of its new recruits to form a
“Young Professionals” group.
The “Young Professionals” group meets on a monthly basis to share new ideas, provide constructive criticism, and offer
perspective and opinions on the organization. To help focus the discussion and collect valuable feedback, management supplies
the group with a list of questions prior to each meeting.
BENEFITS AND COMPENSATION
As a not-for-profit organization, Upper Thames River Conservation Authority (UTRCA) does not have the financial resources to
pay top wages and benefits. However, these barriers have not stopped the company from attracting qualified workers. To remain
competitive in the industry, UTRCA has successfully marketed its employee-focused corporate culture as a benefit that cannot be
bought.
One key element of UTRCA’s employee-focused corporate culture is its flexi-time program. Working an extra half hour per day,
staff then has the flexibility to take the banked time off when they need it. This flexi-time program reduces the stress of trying to
balance work and family/home life, and allows the employee more control over his or her workday.
BENEFITS OF NOT FOR PROFIT
UTRCA also relies on a sequential process, beginning at the grassroots level, to ensure that employee input is represented in the
development of HR policies and projects. An example of this is UTRCA’s job evaluation team. Staff represents this team from all
job levels and departments, who rank all of company’s positions on a salary grid. The Management Team takes the
recommendations from this team and puts them forward to the Board of Directors for approval. Employees from all levels of the
organization often make suggestions for policy changes and these suggestions are then investigated for possible adoption.
FLEXIBLE BENEFITS
Connected by meaningful relationships and close personal ties, the employees at Cambria Gordon consider themselves a
functional and interdependent team. This mindset has resulted in a trusting and approachable work environment where employees
are direct, honest, and candid about expressing their personal needs to management. To better respond to the unique challenges
and needs of its employees, Cambria Gordon relies on a practical employee focused benefits structure. This allows management
to be flexible and offer employees the precise services or benefits that they require.
As part of the company’s compensation structure, each employee receives an annual Health Spending Account. This provides
employees with a lump sum of money that can be spent at their discretion on various medical and dental services and products
(the only exception is that the expense must be in accordance with the Canada Revenue Agency).
CELEBRATING PROFIT EQUALLY
It is common for companies who participate in profit sharing to only award select employees or distribute weighted proportions
reflective of base salaries. Cambria Gordon differentiates itself by awarding all positions in the company with the same
percentage of profit sharing. This decision is based on the fact that all employees play an important role in contributing to the
overall success of the organization. Because of this, Cambria Gordon shares and celebrates its financial successes equally among
employees.
EMPLOYEE INITIATED EVENTS
To encourage team building and reward employees for their hard work, Golder Associates celebrates staff achievements through a
variety of social events. Two of the most popular include the company’s annual hockey tournament and musical talent show.
SPORTS AND PASTIMES
Every year Golder invites its prairie offices to participate in its annual hockey tournament. During this weekend long event, the
company rents a community hockey arena and hosts a series of friendly hockey games formed by teams from various office
locations. Employees and their families are invited to attend and watch the entertaining demonstration of sportsmanship and
teamwork.
FAMILY FIRST
Odyssey Environmental appreciates that employees work more effectively when family and professional responsibilities are not
conflicting. As a result, the company has developed several policies to create a supportive and flexible work environment that
promotes work-life balance.
To help accommodate outside of work priorities, Odyssey Environmental allows employees to adjust their work hours on a daily
basis and bank hours for future instances where more time is required. This added flexibility makes it possible for employees to
accompany family members to appointments or attend special events such as school plays or sporting competitions.
The company’s remote access network also helps support family obligations. This system allows employees to work from home
when they are sick or need to care for family members. To further compliment the network, each employee receives up to 15 paid
sick days per year that can be used for personal or family illness. This allows employees to care for sick children and/or support ill
parents without having the stress of choosing between family and financial stability.
HEALTH AND WELLNESS TEAM
Many reputed companies indulge in:
• Organizing activities over the lunch hour such as bike rides, yoga, and walking groups,
• Inviting guest speakers to discuss wellness topics and provide fitness demonstrations,
• Offering one year interest-free fitness loans to purchase exercise equipment,
• Providing shower facilities and bike racks to accommodate work-out routines,
• Hosting healthy lunches for employees to enjoy.
UTRCA efforts to create a healthy workforce have not only resulted in healthier employees, but they have also played a
significant part in lowering the health care costs for the organization’s group insurance plan.
GREEN IDEAS COMMITTEE
Few company units having their operations all over the country and abroad adopts corporate culture is the company’s employee-
led Green Ideas Committee. This committee is made up of eight members representing a variety of business units and staff
seniority who are responsible for introducing green initiatives to the workplace and business practices. Some of the committee’s
initiatives to date include:
1. Educating employees on fuel-efficient vehicles and letting them experience the benefits first hand through the purchase
of a Toyota Prius hybrid car that is accessible to employees.
2. Expanding the company’s recycling program to include computer equipment, batteries, and other materials, in addition
to paper, plastic and metal containers, printer cartridges, and other sundry office items Initiating a “Greener Thinking”
campaign that encourages office-wide energy-saving by posting reminders for staff to turn off office equipment
(including computers, monitors, overhead lights, desk lamps, scanners, copiers, fax machines, and printers) at the end of
the day.
3. Instilling social consciousness by providing organic teas and Fair Trade coffees, using paper that contains post-
consumer content and that is certified by the Forest Stewardship Council (FSC) as being produced from a well-managed
forest, choosing energy efficient computers and electrical appliances, and purchasing office products made from
recycled (and recyclable) plastics and that are FSC-certified.
4. Participating in environmental activities such as shoreline cleanups, Earth Day events and Bike to Work Week.
VOLUNTARY MATCHING PROGRAMS
Many reputed TNC, MNCs are aims to bring added fulfillment and support the values of employees, and the company has made
community and volunteer work a key priority. These goodwill initiatives have stimulated employee engagement in multiple ways
and have played a direct role in shaping the culture of the organization.
To support individual contributions, the company offers a Donation and Volunteer Matching Program. This program matches
dollar for dollar any donation made by an employee to a qualified charity throughout the year (to a maximum of $500).
Employees can also record their volunteered time, which the company will also match with a cash donation.
For hands-on activities, TERA supports its employees by providing time off work. Some of these initiatives have included
preparing and serving meals at the local homeless shelter, raising funds to support families in need, and supplying manpower for
local clean-up events. TERA has participated in numerous other charity events including:
 Calgary Corporate Challenge,

 Trout Unlimited Annual Fish Rescue,
 The Great Canadian Shoreline Clean-up,
 Blood Donor clinics,
 Cassie Campbell Street Hockey Tournament,
 Homeless Partners Wish List,
 YWCA Adopt-a-family,
 Calgary Herald Christmas Fund.
SUPPORTING EMPLOYEE VALUES
Fundy Engineering & Consulting Limited’s corporate culture is largely based on the impassioned values of its employees to be
actively involved in the community. This desire has transcended throughout the organization and led to the creation of multiple
HR initiatives. To provide employees with the necessary time to build relationships in the community, Fundy Engineering allows
each employee to spend up to 10% of their paid work time on volunteer activities. This has made it possible for employees to take
on more active roles such as becoming members of various not-for-profit committees and assisting with the execution of charity
events. Fundy Engineering further incorporates the interests of employees into annual event planning and philanthropic decisions
by encouraging them to research and present new volunteer opportunities. This consideration helps diversify volunteer efforts,
broaden community exposure, and ensures that the core values of employees are always represented.
REWARDS AND RECOGNITION
Golder Associates: a global organization specializing in ground engineering and environmental services recognizes the
collaborative efforts of its team. To provide employees with a means of thanking and recognizing one another’s contributions, the
company created its Recognition of Our Colleagues (ROC) program. ROC is a new on-going program that allows employees to
express gratitude to their colleagues throughout the year.
Through the program, employees can access thank you cards and gift certificates (ranging from $25-$200) from the Human
Resource Department. The gift certificates are for the Gift Boutique website, which allows employees to choose a certificate for a
location of their choice. Options include various retailers and restaurants including Sears, The Keg, The Shoe Company and
Mountain Equipment Co.
There is no cost to the employee to participate and employees are never required to provide a reason or the name(s) of the co-
worker(s) whom they want to thank In addition to the on-going ROC program, Golder sponsors one special Thank You Day per
year where employees have an opportunity to thank their mentors. Golder provides wine, boxes of Bernard Callebaut chocolates
and thank you cards to employees. To participate, employees submit a request to Human Resources indicating how many bottles
of wine and boxes of chocolates they require for their mentor(s).The wine and chocolates arrive at the office in time for the
designated Thank You Day where employees have the opportunity to collect their gifts and personally deliver them to their
mentors. Employees are encouraged to participate in the program and are never questioned when requesting their gifts of thanks.
VACATION VOUCHERS
It is common for professionals in the environmental consulting industry to work long hours and manage heavy workloads. To
reward staff for their outstanding effort and achievements, TERA Environmental Consultants presented each employee with a
$500 vacation voucher and an extra paid day off. The only stipulation for the bonus was that it had to be used for something
“restful.” This was further encouraged through a follow-up contest that recognized the employee who used their vacation voucher
most creatively.
Cambria Gordon—an environmental consulting firm situated in northern BC - inspires its staff to approach challenges with
creativity and enthusiasm by upholding a culture that is forgiving of mistakes. Rather than dwelling on the errors of employees,
Cambria Gordon recognizes the effort behind the act and prompts employees not to be discouraged about trying something new
and making a mistake in the process to celebrate and laugh about the innocent slip-ups of employees.
VALUE AWARDS
Maxxam Analytics recognizes exceptional employees who embody and uphold the core values of the organization with its annual
“Values Awards.” To be considered for the prestigious and internally sought-after award, employees must be nominated by their
peers. Only seven to ten Values Awards are given per year. Senior management selects the winners based on the peer nominations
and demonstrated excellence in the company’s core values such as innovation, customer service, creativity, teamwork, etc. Each
award is personally presented by the President of Maxxam Analytics, Jon Hantho, and consists of an engraved plaque, $4,000
after-tax award to be spent on a dream vacation, and an extra week of vacation time.
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*****
INTEGRATING COMPETENCY WITH TALENT MANAGEMENT: GMR EXPERIENCE

K. V. S. Patnaik4 Gudivada Venkat Rao5
ABSTRACT
The focus of competition in the post globalization period is concentrated around functional, process and product quality. The
quality is invariably linked with the potential and performance of the human resources. The core competencies are the tangible
and intangible possessions of an organization. The talent management is an important organizational initiative to acquire,
retain and develop the talent.
A mature organization identifies the key elements of talents and integrates with its strategic business and corporate interests.
The competency standards are the desired outcomes and this paper critically examines the GMR experience in integrating
talent management with competency requirements.
KEYWORDS
Competency, Talent Management, GMR Experience, Nurturing Talent etc.
INTRODUCTION
The focus of competition has shifted from product quality to process quality and to the functional quality. The term quality is a
harbinger of tangible and intangible assets and the focal of exhibited behavior. The possession of these behavioral traits is the
competitive strength of the organization. Talent is one such possession of any organization. Talent is innate with potential and
difficult to understand. The HRM can achieve maturity on integration of HR initiatives with Talent Management to face
competition. The core competencies are the shared skills of employees in the organization and are unique. The talents are the
present and future potentials of the HR in organization. Therefore, developing and building a culture to nurture the talent to suit
the organization’s requirement is continuous. A mature organization identifies the key elements of talents and deals with changes
to suit its business and strategic interests.
Talent management is a systematic and continuous process, for some organizations, talent management is a dynamic process of
identifying, assessing and developing talent in a systematic way for future roles to ensure effective organizational performance.
Talent management is referred to how talent is managed in the organization i.e. identifying the talent, integrating the talent with
the organizational work settings. Some organizations view talent management starts with acquisition whereas others concentrate
on nurturing the existing internal resources (Peter Cappelli, 2008).
Talent Management refers to a set of activities to attract, develop and retain employees and how to deal with talented and or high
potential employees.
Aravamudhan (2011) has constructed talent management concept with ten components namely: (i) work place analysis and
placing, (ii) design role and competencies, (iii) recruitment, (iv) re-employment, (v) retaining, (vi) performance management, (vii)
learning and training, (viii) monitoring, (ix) skill shortage, and (x) corporate branding.
Lakhwinder Singh and Harpreet Sidhu (2011) on their analysis of TCS in India conclude that talent management is both integral
and strategic to business and group needs.
Simon Oberoi (2010) comments most valuable talent see for key benefits laced with differential approach, paying for parity,
paying for performance, communication, rewards, innovative compensation practices and career progression. Jose Mathews
(2012) concludes the nature of information processing and organizational learning adds to the knowledge creation and main
contribution of good talent management is building the intellectual capital (Kirti Sharda, 2012). Douglas A. Reedy and Jay A.
Conger (2007) refer to functionality as a tool, which helps in placing the right people with right skills in the right place at the right
time.
TALENT MANAGEMENT AS STRATEGIC TOOL
Talent management may be classified as a strategic tool. The talent management is utilized to leverage the resources in
combination with human resources. Talent Management is embedded with acquisition, deployment, compensating, retaining and
development:
1. Acquisition: Attracting and selecting the right candidate for the right role is the prerequisite for competitive
effectiveness.
4 Director,College of Management Studies & Computer Sciences, Dr. L. Bullayya College (P.G.), Andhra Pradesh, India,
venkypat999@gmail.com
5Assistant Professor, Department of HRM, Dr. L. Bullayya College (P.G.), Andhra Pradesh, India, gvr101@rediff.com
2. Deployment: Deployment of the acquired talent at the right place with right role mix is the major objective to be
fulfilled.
3. Compensating: Compensation policy to be fair and maintain internal and external equity. Compensating for
performance with potential is the strategy.
4. Human Resource Development: Providing opportunities for enhancement of competencies and capabilities through
mentoring, coaching and counseling.
5. Retaining: Ensuring strategies to retain the talent in compliance with the workplace requirements and quality.
TALENT MANAGEMENT PROCESS WITH LINK TO COMPETENCY
The new competency set may be identified with skills, knowledge, personal traits and exhibited behavior (experience). The
competency requirements for the organization are benchmarked with expected standards to be maintained to attain the desired
vision, values or beliefs.
The process follows: (i) Standards Identification: The process starts with benchmarking the standard competencies required for
the organization to perform at the expected level. (ii) Forecast: The likely shortage in potential on account of attrition, lateral and
vertical movement. (iii) Data Collection: The data pertaining to the performance of the employee are collected for identifying the
potential. The performance is appraised with respect to the competencies exhibited beyond expectations, (iv) Analysis: The
exceeding and consistent performers are identified as talent. The non-performers with potential matching competencies as
scheduled by the organization are also to be analyzed. (v) Evaluation: Employee evaluation is measured with 1) Performance
Appraisal and 2) Potential Appraisal, and (vi) Decision: In this phase, decision on talent utilization, talent development and
capability are made.
In the above context, a study was conducted based on interviews and relying on secondary sources to analyze the talent
management practices in GMR Group.
TALENT MANAGEMENT PRACTICES - GMR EXPERIENCE
GMR is a fast developing infrastructure establishment with multifarious business activities and global presence. GMR GROUP
through subsidiaries, joint ventures and independent companies has presence in Power Generation, Mining and Exploration,
Highways, Infrastructure Development, Construction business including Engineering, Procurement Construction and operation of
Special Economic Zones.
GMR Infrastructure Limited has under its business domain 3 operational power plants, 3 international airports and 6 operational
highways. Some other projects are under construction. GMR Group has Humility, Entrepreneurship, Teamwork and
Relationships, Deliver the promise, Learning and Social responsibility as it values and beliefs. The Core Competencies are based
on 4 pillars and 11 competencies aligned with values.
The HRM policy is rationalized and linked to core competencies, talent grooming and developing of human capabilities. Talent
management is for present and future human requirements with a view to identify the demand-supply gaps, internal sources and
external sources. The talent management is initiated for identifying the successors for leadership role at the Group and Business
level. The talent management in GMR revolves around identification, developing and career movement.
The objectives of Talent Management model in GMR are Talent Potential Mapping, Succession Planning, and Individual
Development Plans, which includes job rotation, key assignment, coaching and external training programmes.
The talent management is initialized at two levels: i) Group Level, and ii) Business level. At GMR, the Talent Management
comprises of the following two important components.
Talent Assessment
Talent Assessment is a process of assessing the employee on past performance and potential, learning, leadership, advancement
potential and competencies. This is done with the help of 9 box performance - potential matrix model.
Potential – Performance Assessment Matrix Tool
The talent is assessed with consistency with the aid of a Potential –Performance Assessment Matrix tool. The output is supplied in
a format by the Talent Review Support team to the Talent Management Review Team for each executive. The Matrix is a grid
with Potential as X –axis and Performance as Y- axis. The grid is arranged at three levels High, Medium and Low. The grid has
nine blocks or boxes.
Potential and Performance Scale
The Behavioral competency of executives is mapped and matched with 16 behavior competencies identified through GMR
Competency Model. The behavior competency is mapped by the Development Centre on 1 to 4 scale as follows ; 2.8 and above as
high potential , between 2.79 to 2.8 as medium potential and less than 1.99 as low potential.
Chart-1: Potential – Performance Matrix Grid
Sources: Authors Compilation
The classification of performance is based on the performance rating in the last 3 year and is categorized as follows:
i) FEE: far exceeds goals, practices values consistently, role model and promotes values,
ii) EE: exceeds goals, practices values consistently and role model,
iii) ME: meets goals, practices values consistently and synergy between values and results,
iv) BE: meets most goals with high-level supervision, practices values inconsistently and may get results.
The performance is classified as High, Medium or Low on the following criteria:
i) 3 performance ratings either FEE/ EE or in combination - High Performance,

ii) Any 2 with FEE/EE or 1 in combination with ME - High Performance,
iii) BE or ME in first year followed by EE/FEE in the next two years - High Performance,
iv) 2 ME with FEE/EE in the following Year - Medium Performance,
v) 2 BE followed by ME in the following year - Medium Performance,
vi) More than 2 BE - Low Performance.
TALENT REVIEW
The Talent Review is a process of systematic qualitative review through formal group discussion method. The talent review
management team at the group and business is responsible for talent review exercise, which starts with formal interaction between
the Group Head, Business Head and Senior Leadership Team at both Group and Business Steering Committee level. The Talent
Review policy covers all employees: (i) with minimum 2 years of service, (ii) has completed 2 Performance Management cycles,
(iii) presently working in M1 – M3 grade at group level and in M4 - S9 grade at business level, and (iv) has undergone training at
development centre.
The Talent Review is conducted at group level and business level with RASCI benchmark model where R - Responsibility, A-
Approval, S – Support, C - Consult, I - Inform. Here, two Talent Level Management Review Teams are constituted at Group level
and Business level. Further, the Management Review Team and Business Head constitute Talent Review Support Teams. The
support team is responsible for preparation of data, facilitation, consolidation, follow-up and suggestions.
The Talent Review Process in GMR undergoes the following stages:
1. Stage1: Talent Support Review Team coordinates with Talent Management Review Team by providing the data and
required facilities. The schedule is prepared at this stage.
2. Stage2: The data provided is compiled and analyzed by the Talent Management Review Team and agenda is prepared.
3. Stage3: The Human Resource Department’s representative formally arranges for one – one discussion.
4. Stage4: The Senior Level Leadership Team at Corporate and Business levels coordinates with the support teams to
prepare and implement the development decisions.
5. Stage5: Preparation of Human Capital Plan. The data is utilized to prepare the plan.
Integrating Core Competency with Talent Management Practices:
The data is sent to the Development centre where based on talent management policy prepares the Report on strengths and Areas
of Development Required. The gaps in performance between the actual demonstrated and desired level are noted. The
performances are linked to competency as scheduled below and identified through GMR Competency Model.
i) Lead self : Personal Effectiveness, Stakeholder focus, Networking,

ii) Lead others: Team Work, Execution and Results,
iii) Lead business: Problem Solving & Analytical thinking, Strategic Orientation, Planning & Decision making,
iv) Lead change: Social awareness, Capability building and Entrepreneurship.
Review Session:
The review session is facilitated by the HR representative with the Talent Management Review Team . The review session
discusses the approach , flow and individual summary sheet of each executive. The recommendations are also recorded. The
executives are classified into different boxes. The Talent Review team in consultation with HOD’s data identifies and thoroughly
matches executives for the following ; Identifying future leaders, Replacement Planning, Retaining High Potential executives,
Retaining Experts, Strength and development needs of executives, Job rotation,Leadership vacancy,Supply- demand gaps and
sources to fill with potential candidates, Role assignment, mission critical assignments.
The Talent Managemnt Team is assigned with the following agenda: (i) Retain High Potential Executives, (ii) Replacement
Planning, Identification of Future Leaders and Succession Planning, (iii) Retaining Experts, (iv) Identifying Leadership Position
Vacancy Risks, and (v) Strength and Development Needs of Executives.
Report Preparation for Review:
The talent support team prepares a report-containing resume, summary and scores of the talent management report and
performance management report.
CHALLENGES AND ISSUES FOR EFFECTIVE TALENT MANAGEMENT PRACTICES
1. Creating Competitive environment with universal and individual best practices.

2. Culture building for performance.
3. Better climate, diversity management and cross cultural best practices.
4. Identifying high performance work teams.
5. Career and succession planning for retention and tapping the potential.
6. Nurturing the talent with effective training and development.
7. Talent utilization through offshore and onshore practices.
8. Create a continuous learning environment.
9. Implement better knowledge management practices.
CONCLUSIONS
The work force is identified as resource. Thus, managing the resource for talent is the emerging challenge for Human Resource
Practitioners. Therefore, Talent Management may be utilized, as a tool for effective management of Human Resource by
integrating with competency.GMR Group experience by linking competency with talent management is broader and futuristic. A
multi dimensional upcoming group with strong presence in infrastructure and proclaims values as its competencies and is holistic
in outlook. GMR model is comparatively different with emphasis on competency linkage. The consistent performance of the
group with varied diversification in infrastructure is a testimony of how it utilizes manpower talents to create core competencies
based on four pillars i.e. lead self lead others, lead business and lead change.
REFERENCES
1. Aravamudhan, A. R. (2011, October). Talent Management: A critical imperative for organizations. HRM Review.
ICFAI University Press, 36-40.
2. Lakhwinder, Singh Kang, & Harpreet, Sidhu. (2011, October). Talent Management of TCS. Global Business Review:
Sage Publications, 12(3), 460-471.
3. Watkins, Michael D. (2012, June). How managers become leaders. Harvard Business Review.
4. Peter, Cappelli. (2008, March). Talent Management for the Twenty-First Century. New Delhi: Harvard Business
Review South Asia.
5. Simon, Oberoi. (2010, August). Desperately seeking talent. Human Capital, 14(3), 32-35.
6. Jose, Mathews. (2012, July-September). Knowledge creation in organization: A social cognitive view. Vikalpa, 37(3).
7. Douglos, A. Reedy, & Jay, A. Conger. (2007, June). Make Your Company a Talent Factory. (Review from the book
Harvard Business Review South Asia). New Delhi.
8. Kirti, Sharda. (2012, July-September). Managing Talent at Lupin Limited.Vikalpa, 37(3), 129.
9. GMR Manuals.
*****
PROVIDING PERSONAL FINANCE EDUCATION AT WORK PLACE AS A

PART OF EMPLOYEE BENEFITS IN INDIA
Lokanath Mishra6
ABSTRACT
Several research studies have been conducted all over the world to measure the impact of comprehensive personal financial
education to employees at workplace on overall productivity, work environment and industrial peace. Most of these studies
have concluded that the impact is positive. India fortunately enjoys a major demographic advantage. As per 2011 Census, it
has more than 50% of its population below the age of 25. As per a recent revelation made in an ILO report, the employment
figure in India grew only from 457.9 million in 2004-2005 to 458.4 million in 2009-2010, while labour productivity grew by
34% over this period.
The report has also revealed that prior to 2000, labour productivity and employment in India had grown at similar rates;
however, over the past decade, increased productivity has taken over as a driver of growth. India can reap the full benefit of its
demographic dividend only by sustaining its present high level of growth in labour productivity, which can only be achieved
by encouraging employers to provide workplace financial education as a part of employee benefits.
KEYWORDS
Workplace Financial Education, Employee Benefits, Labour Productivity, Labour Welfare, Financial Stress Levels etc.
"Workers with money problems are like sharks swimming around the job site taking bites out of the bottom line."
E Thomas Garman
INTRODUCTION
India fortunately enjoys a major demographic advantage. As per 2011 Census, it has more than 50% of its population below the
age of 25 and more than 65% below the age of 35. It is expected that, in 2020, the average age of an Indian will be 29 years,
compared to 37 years for a Chinese and 48 years for a Japanese; and, as per an estimate of Dr. Kausik Basu, Chief Economic
Advisor, Ministry of Finance, Government of India, by 2030, India's dependency ratio would be just over 0.4. A nation's
"dependency ratio" is the ratio of the dependent population (below 14 and above 64) to the working-age population (between 14
and 64).
As per a recent report of ILO (2012) titled, “Global Employment Trends 2012- preventing a deeper jobs crisis”, India is likely to
weather the latest global slowdown better than most countries, provided it ensures rising income levels for the working class and
enough jobs for a growing working-age population. The main challenge is not unemployment, but rather the high degree of
informality that persists despite strong growth. The robust growth witnessed in the South Asian region was driven largely by India
and was mainly due to the rapid rise in labour productivity, rather than an expansion in employment. According to the ILO report,
total employment in India grew only marginally while labour productivity registered significant growth during recent years. The
employment figure grew from 457.9 million in 2004-2005 to 458.4 million in 2009-2010, while labour productivity grew by 34%
over this period. The report also revealed that prior to 2000; labour productivity and employment in India had grown at similar
rates. However, over the past decade, increased productivity has taken over as a driver of growth.
India can reap the full benefit of its demographic dividend only by sustaining its present high level of growth in labour
productivity. This could be possible through consistent positive efforts to improve productivity by all the stakeholders including
Government, employers and employees. Poor personal financial behaviour of employees is an area of growing employer concern
since it is clearly related to employee productivity. The goal of employers therefore should be to seek out employees experiencing
stress from personal financial management difficulties and provide them with assistance. Keeping this in view, wise employers
have already started offering comprehensive personal finance education to their employees.
Several research studies have been conducted all over the world, especially in developed countries, to measure the impact of
comprehensive personal financial education to employees at workplace on overall productivity, work environment and industrial
peace. Most of these studies have concluded that the impact is positive. In course of time, employers in developed countries, have
understood the rationale for providing comprehensive financial education to employees at workplace and are now keen on
investing time and money for offering such education as a part of employee benefits. Studies have revealed that the return on such
investment is quite high.
6Professor, Bharatiya Vidya Bhavan’s, Usha & Lakshmi Mittal Institute of Management, New Delhi, India,
mishra.lokanath@gmail.com
REVIEWOF LITERATURE
Bernheim et al (1996) had conducted two path breaking research studies / surveys, one of employee households and another of
employers and came to the conclusion that financial education offered to employees at workplace has a positive impact on their
savings and investment behaviour and overall financial well-being.
Garman, E.T. (1997) had observed, “Employers should offer comprehensive personal finance employee education because the
cost is low and the benefits are high. To strengthen the case, more research on the bottom-line benefits of personal finance
employee education should be accumulated”.
Kratzer et. al., (1998) had reported the following: “A study was conducted at a chemical production company to investigate the
effectiveness of workplace financial education. Since participating in the workshops, most workers reported that they make better
financial decisions, have increased confidence when making investment decisions, changed their investment strategy by
appropriately diversifying or being more aggressive in their investment choices, and have an improved financial situation. Most
workshop participants took positive actions to improve their financial well-being. Workers were interested in attending more
workshops on a variety of topics.”
Garman, E.T (1999) in his paper titled “The Business Case for Financial Education” had argued that there is a business sense for
providing workplace financial education to employees the premise of their increasing financial wellness and improved job
productivity. The rationale for providing comprehensive financial education to employees at workplace is strong and the return on
investment for both employees and employers is quite high.
Garman et al (1999), in a study conducted in a South-eastern chemical production company found strong evidence that workplace
financial education is effective because it resulted in better financial wellness for workers.
Joo, (2002) had observed that, “the argument that a link exists between personal financial wellness and productivity is empirically
based. It is now widely accepted as true that higher levels of personal financial wellness lead to higher levels of productivity”. She
determined that personal financial behaviours and financial satisfaction are positively related with job performance. She also
found that financial behaviours are negatively related with absenteeism. In other words, those who exhibit sub-optimal personal
financial behaviours tend to be absent from work more than others. Joo concluded that improving personal financial wellness
could be the next step in company specific and macro-economic productivity improvement.
Financial Literacy Partners, LLC (2005) in its report titled “Employee financial stress is costing your company a bundle-
and how you can stop it now!” has observed the followings:
1. There is a silent epidemic that afflicts 30 million workers in the US- a quarter of the American workforce - and it could
cost your business up to $15000 per year per affected employee.
2. It is their debt but it is your problem!
3. Reduced Employee Productivity - 20 hours per month per employee. Employer cost $7000 / per year in lost productivity
alone.
4. Workplace Accidents - 60% to 80% of on the job accidents are stress related.
5. Health and Welfare Issues -75% to 90% of all Doctor’s visits are stress related.
6. Employee Turnover - 40% of employee turnover is due to stress.
7. What is good for your employees is good for your business. Solution: Run an effective financial education programme
for employees.”
Financial Finesse (Feb 29, 2012) has reported the employee financial issues in the year 2011 as follows:
“Overall, employees’ financial stress levels have improved since the recession of 2008. Employees are accelerating the trend we
began to see in 2010, reducing their stress further in the first quarter of 2011. While stress levels improved in the first quarter of
2011, the vast majority of employees are still under financial stress. Even among the least stressed demographics, over 75% report
they are facing financial stress, and among the vulnerable demographic groups, 89% or more report financial stress.
Financial stress is heavily correlated with poor money management skills, with a very direct relationship between the degree of
financial stress someone faces and their ability to manage their expenses, control their debt, and pay their bills on time. While
those with no financial stress are overwhelmingly doing a good job managing their day-to-day expenses, debts, and emergency
savings accounts, they are surprisingly lax about longer-term financial planning priorities such as retirement planning. Sixty-seven
percent of those who report having no financial stress indicate that they are not prepared for retirement, and less than half have
drafted basic estate planning documents like wills and trusts to protect their assets.
There is a significant disparity among different demographic groups with respect to financial stress levels. In general, financial
stress levels improve with increases in age and income, with two notable exceptions: Employees under 30 and those making less
than $35,000 are less stressed than those ages 30-44 and those in the middle income range. Women reported notably higher levels
of financial stress than men with 9% feeling their financial stress was overwhelming compared to only 3% of men reporting
overwhelming stress. Surprisingly, married employees reported lower levels of financial stress than single employees did.
Only 4% of married employees reported overwhelming stress compared to 8% of single employees. This could be due to the fact
that marriage often means two incomes and merged expenses. Family structure had a significant impact on employees’ financial
stress levels. Seventeen percent of households with no children reported no stress compared to only 10% of households with
children. This is not surprising when you consider the average cost to raise a child for a middle-income American family is about
$280,000.
Contrary to the belief that lower-income employees experience higher financial stress, the income group with the most stress was
employees with incomes ranging from $60,000 to $74,999 per year. This could be due to the fact that employees in this bracket
have more access to credit and can get into higher levels of debt than their lower income counterparts. Most notably, our Financial
Wellness Assessment, which is designed to identify employees’ key financial vulnerabilities, revealed that employees who
reported having no financial stress actually had significant vulnerabilities that could jeopardize their financial future. These
vulnerabilities included not saving enough for retirement, investing poorly, and not effectively protecting the wealth they have
built. The fact that these employees have significant financial vulnerabilities but still report no financial stress shows they could
be in a state of complacency with their finances, operating under a false sense of security and not paying enough attention to their
long-term goals”.
Rationale for providing comprehensive financial education to employees at workplace:
1. Increased worker productivity,

2. Reduced absenteeism to take care of personal financial matters,
3. Reduced human resource administrative costs to process wage garnishments and requests for payroll advances and PF
loans,
4. Increased participation in and contributions to employer-sponsored retirement plans,
5. Reduced stress over financial matters and decreased stress-related illnesses from alcohol and other substances,
6. Reduced health care premiums,
7. Fewer accidents on and off the job,
8. Improved use of and satisfaction with employer-provided fringe benefits,
9. Reduced human resource administrative costs because fewer questions are asked,
10. Reduced turnover by attracting and retaining qualified workers,
11. Reduced pressure to increase salaries and wages,
12. Increased capability for retirement saving,
13. Increased number of worker retirements on time, rather than delayed,
14. Increased morale, self esteem, work satisfaction and attitude to work,
15. Improved loyalty to employer,
16. lower household debt-to-income ratio,
17. Reduced exposure to future litigation based upon fiduciary liability as fewer retirees have financial problems,
18. Increased financial wellness,
19. Improved social cohesion,
20. A positive return for money invested in comprehensive financial education. Return on investment can be as high as
300%, or even more.
(Sources: Compiled from various research studies available on the subject)
Garman, E.T et al (1996), on the other hand have studied how poor financial behaviours of employees could adversely impacts the
environment in the workplace, overall productivity, quality of production, level of customer satisfaction etc.
POOR FINANCIAL BEHAVIOUR OF EMPLOYEES AND ITS NEGATIVE IMPACT ON EMPLOYERS
Table-1
Poor Financial Behaviours of Employees Negative Impact on Employers
2. Regularly spending too much money, 1. Absenteeism,

3. Regularly over using credit, 2. Tardiness,
4. Regularly reaching the maximum limit on a credit 3. Fighting with Co-workers and Supervisors,
card, 4. Sabotaging the work of co-workers,
5. Regularly running out of money, 5. Job Stress,
6. Regularly writing "bad checks" (e.g., ones with 6. Reduced Employee Productivity,
insufficient funds in the account, which is a criminal 7. Low Employee Morale,
offence), 8. Loss of customers who seek better service,
7. Typically having a low or non-existent emergency 9. Loss of revenue for sales not made,
fund savings, 10. Accident and increased risk taking,
8. Regularly being unable to pay bills due (e.g., utilities, 11. Disability and worker compensation claims,
rent, child care, credit cards), 12. Substance abuse,
9. Regularly being unable to repay loan installments, 13. Suicide and Murder,
10. Habitually receiving "overdue notices" from creditors 14. Increased use of available health care resources by
11. Regularly paying late some due bills and debt employees and relatives,
installments, 15. Employer time to deal with poor financial

12. Regularly relying on a second income to pay living behaviours of employees,
expenses and debts, 16. Loss of trained personnel.
13. Being denied additional credit because of a poor credit
history,
14. Regularly borrowing, perhaps by obtaining a cash
advance from a line of credit on credit card or advance
pay from an employer, to pay for living expenses and /
or other debts,
15. Regularly obtaining debt-consolidation loans,
16. Typically having liabilities in excess of assets,
17. Typically not contributing to a pension plans,
18. Regularly losing money to rip-offs and frauds,
19. Regularly losing money by gambling or buying lottery
tickets and/or gambling in an attempt to "fix" one's
financial situation,
20. Regularly allowing insurance to lapse (e.g., vehicle,
renter's/homeowner's, medical, life),
21. Regularly making a request for welfare (e.g., cash
grants, food, stamps, subsidized housing),
22. Regularly feeling emotionally stressed about money
matters,
23. Regularly worrying about the security of one's job,
24. Regularly receiving communications from collection
agencies / services, including those for spouse and
child abuse,
25. Being sued for financial reasons,
26. Having property securing a debt repossessed,
27. Having utility service cut off,
28. Being evicted from rental housing or having one's
home foreclosed,
29. Having a lien placed on one's personal or real
property,
30. Having one's tax refund intercepted by a government
agency or court.
In India, there is no report / evidence of any similar study having been conducted by anybody. Indian labour laws are also silent
on this subject. Government has not so far thought of introducing provision of work place financial education as a labour welfare
measure. As a result, employers in India, in general, in both public and private sectors, have not yet given any attention to this
vital issue. Researchers world over are finding that employees not only want workplace financial education, but that such
education improves their personal financial behaviours and job productivity.
However, in India, any effort on the part of employers to spend for increasing the financial wellness of employees would not be
possible until the employers get convincing evidence on the bottom-line savings that result from workplace financial education or
are compelled by some governmental guidelines/ statutory requirements to do so.
TEN MOST DESIRABLE FINANCIAL BEHAVIOURS OF INDIAN FACTORY WORKERS
As per Personal Finance Employee Education Foundation (PFEEF), there are many good personal financial behaviours but the
most fundamental truth is that: (i) one must spend less than one earns, thus sacrificing some spending to invest for one’s future.
Additional good financial behaviours include: (ii) Establishing measurable financial goals and realistic plans to achieve them; (iii)
Building and maintaining an emergency fund equal to three months of take-home pay; (iv) Using a budget to control spending for
regular and irregular expenses; (v) Maintaining adequate insurance for property, liability, life and health exposures; (vi) Paying
credit card charges in full every month and keeping non-mortgage debt payments below 15 percent of disposable monthly
income; (vii) Saving for retirement through an employer’s tax-sheltered plan at least the amount required to obtain the largest
matching contribution and with a Roth IRA account if an employer’s plan is insufficient to achieve a secure retirement; (viii)
Leaving retirement money where it belongs in retirement accounts prior to actually retiring; (ix) Recognizing that the closer one is
to a financial goal that less risk should be taken, and conversely; (x) Preparing, and updating as needed, a will, advance directive
documents and beneficiary and ownership designations on all financial accounts.
Indian situation is little different. Industrial labour in India is characterized by: (i) relatively larger family size - high level of
dependency (ii) abject poverty, most workers living in a hand – to-mouth situations, with little scope for savings and investment
(iii) some industrial labour have addiction to wine and other forms of intoxications, which account for a sizable portion of their
expenditure (iv) low level of literacy (v) High level of borrowings from informal sources at exorbitant rates (vi) not accustomed to
family budgeting (vii) not involving women and children in financial decision making (viii) ignorance about insurance products
and their utility (ix) Retirement savings only through statutory mode (PF & Gratuity, Pension etc) (x) no estate planning.
Table-2
Number Desirable Financial Behaviour of Indian Factory Workers
1 Spending less than earning.

2 Not spending any money on drinking, smoking and other forms of bad habits.
3 Resorting to a practice of monthly family budgeting for controlling expenditure. Involving all the members of
family, including women, in the budget making process.
4 Having a realistic financial plan for the future to meet major family expenses like children’s education, marriages
in the family, funerals, buying a house etc.
5 Creating an emergency fund, equivalent to three to four months of average monthly expenditure, to meet
financial contingencies.
6 Looking for other possible sources of income to supplement the monthly wage earnings.
7 Borrowing only within the limit of one’s repayment capability. In case it is completely unavoidable, resorting to
borrowing only from formal channels, like banks, after evaluating the terms of borrowings from all the available
sources.
8 Adequately insuring life, health (medical), disability risks and properties to safeguard the interest of self and
family.
9 Investing in assets/ instruments only after understanding their risk return profile, suitability and after taking the
advice of an investment advisor.
10 Planning for retirement, right from the beginning of the career. Not withdrawing any amount from retirement
savings before actual retirement.
DESIGNING AN INSTRUMENT (QUESTIONNAIRE) FOR ASCERTAINING FINANCIAL WELLNESS SCORE OF

INDIAN FACTORY WORKERS
An instrument (questionnaire) for ascertaining financial wellness score of Indian factory workers can be developed using the
above ten desirable financial behaviours. A five point numerically graded scale (5, 4, 3, 2, and 1) can be developed for each of the
above ten desirable financial behaviours with score of 5 for most desirable behaviour to a score of 1 for least desirable behaviour
as follows:
Do you spend less than you earn?
(a) Always (b) Mostly (c) 50% times (d) Rarely (e) Never.
What percentage of your monthly expenses you spend on satisfying your undesirable habits like boozing, smoking etc?
(a) 0% (b) 1% to 5% (c) 6%to 10% (d) 11% to 15% (e) 16% and above.
Do you follow a practice of monthly family budgeting, wherein you involve all your family members?
(a) Always (b) Mostly (c) Sometimes (d) Rarely (e) Never.
Do you have a realistic financial plan for future?
(a) Yes, it has been documented and discussed within the family,
(b) Yes, but I have not discussed this with any one,
(c) I am contemplating to have such a plan,
(d) I have not thought about this yet,
(e) No need for having such a plan.
Have you created an emergency fund to meet financial contingencies?
(a) Yes, we religiously maintain this (b) Yes, we had created, but we have not been able to maintain this fund at
appropriate level (c) Yes, we had created, but now the balance in this fund has disappeared (d) We understand
the need for creating such a fund but have not made any effort so far to create such a fund (e) There is no need
to create an emergency fund.
Do you make effort to supplement your income with other earnings?
(a) Always (b) Mostly (c) Sometimes (d) Rarely (e) Never.
While considering to borrow, do you take into consideration your repayment capability and appropriateness of source and terms
of borrowing?
a) Always, (b) Mostly, (c) Sometimes, (d) Rarely, and (e) Not possible, to consider all these factors.
Have you taken adequate life, health, disability and general insurance to safeguard you and your family from risks of life and
properties?
(a) Yes (b) I have taken some insurance, but I don’t know whether this is adequate (c) I have only taken insurance
offered by my employer (d) I have not taken any insurance but would like to cover my risks (e) I do not need
any insurance.
Do you invest in assets / financial instruments only after considering the risk return profile of such investments?
(a) Always (b) Mostly, I take the help of an investment advisor to guide me (c) I only invest in gold and
properties and I feel I don’t need to consider the risk return profile (d) Whenever any surplus is available, I try
to spend that in family entertainment (e) I don’t have any money for investment.
Do you believe in having a suitable retirement plan?
(a) I am a firm believer and I keep on improving my knowledge on this on a continuous basis and act accordingly
to improve my retirement savings.
(b) I believe in having a suitable retirement plan, but I do not update my plans.
(c) I understand the benefits of retirement planning, but I have not made any efforts to go beyond the retirement
benefits offered by my employer.
(d) I feel my children will take care of my needs after retirement.
(e) I will face the challenge when it comes.
The instrument, so developed, has to be properly validated and its reliability tested before putting it to use.
CONCEPT OF “EMPLOYEE BENEFIT” IN INDIAN CONTEXT
Employee benefits and benefits in kind (called fringe benefits, perquisites, or perks) are various non-wage compensations
provided to employees in addition to their normal wages or salaries. Examples of these benefits include: housing (employer-
provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, day care,
tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other
specialized benefits.
Ministry of Labour, Government of India, has identified the following as thrust areas:
 Labour Policy and legislation;

 Safety, health and welfare of labour;
 Social security of labour;
 Policy relating to special target groups such as women and child labour;
 Industrial relations and enforcement of labour laws in the Central sphere;
 Adjudication of industrial disputes through Central Government Industrial Tribunals cum Labour Courts and National
Industrial Tribunals;
 Workers' Education;
 Labour and Employment Statistics;
 Emigration of Labour for employment abroad;
 Employment services and vocational training;
 Administration of Central Labour & Employment Services;
 International co-operation in labour and employment matters;
In the above thrust areas, though workers’ education finds a place, in reality this means providing education to workers on job
related matters and not providing personal finance education to workers and their family members.
According to Accounting Standard-15 (AS-15)
Employee benefits include:
a. Short-term employee benefits, such as wages, salaries and social security contributions (e.g., contribution to an
insurance company by an employer to pay for medical care of its Employees), paid annual leave, profit-sharing and
bonuses (if payable within twelve months of the end of the period) and nonmonetary benefits (such as medical care,
housing, cars and free or subsidized goods or services) for current employees;
b. Post-employment benefits such as gratuity, pension, other retirement benefits, post-employment life insurance and
postemployment medical care;
c. Other long-term employee benefits, including long-service leave or sabbatical leave, jubilee or other long-service
benefits, long term disability benefits and, if they are not payable wholly within twelve months after the end of the
period, profit-sharing, bonuses and deferred compensation; and
d. Termination benefits.
Because each category identified in (a) to (d) above has different characteristics, this Standard establishes separate requirements
for each category.
Employee benefits include benefits provided to employees or their spouses, children or other dependants and may be settled by
payments (or the provision of goods or services) made either:
 Directly to the employees, to their spouses, children or other dependants, or to their legal heirs or nominees; or
 To others, such as trusts, insurance companies.
An employee may provide services to an enterprise on a full-time, part-time, permanent, casual or temporary basis. For the
purpose of this Standard, employees include whole-time directors and other management personnel.
PROVIDING WORKPLACE FINANCIAL EDUCATION AS A LABOUR WELFARE MEASURE
Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages.
Labour welfare is nothing but the maintenance function of personnel in the sense that it is directed specifically to the preservation
of employee health and attitudes. The welfare services in an industry are meant to improve the living and working conditions of
workers and their families because the workers well-being cannot be achieved in isolation of his family.
Labour welfare measures, in Indian context, include: (a) Sanitary and Hygiene Facilities, (b) Rest and Recuperation Facilities, (c)
Feeding Facilities, (d) Medical Facilities, (e) Occupational and Health Services, (f) Family Planning, (g) Crèche Facilities, (h)
Housing, (i) Transport Facilities, (j) Recreational and Cultural Facilities, (k) Educational Facilities, (l) Co-operative and saving
facilities, (m) Personnel Counseling, (n) Distress Relief and Cash Benefits, and (o) Social Security Measures. Education facility,
which is an important component of labour welfare measures in India, however, include only providing education to employees to
enhance their job knowledge for improving their on the job efficiency and providing basic education to children of employees.
Unfortunately, so far in India, providing financial education to employees at workplace has not been recognized as a labour
welfare measure.
SURVEY RESULT ON FINANCIAL EDUCATION FOR EMPLOYEES AT WORKPLACE
The researchers conducted a survey titled “Financial Planning Education Survey” in 2011 with 47 respondents (Educationists,
NGOs dedicated to employee education, Education Providers & Social workers) in India, which, inter alia, revealed the following:
Question 1: Employers who offer personal finance education to employees under their employee benefit scheme convey that they
are concerned with their long-term welfare. However, employers typically offer only narrowly focused financial education about
retirement. They should offer comprehensive personal finance employee education, because the cost is low and benefits are high.
Table-3: Comprehensive Financial Education Graph-1: Comprehensive Financial Education need to be

required to be provided to Employees at provided to Employees at Workplace
Workplace
Response % Responded
Agree 90
Disagree 2
Don’t Know 8
Total 100
Question 2: Financial education within the workplace has become a necessity because there is a direct link between improved
financial knowledge, enhanced personal financial wellness and employee productivity. An Employee cannot perform better if his /
her mind is preoccupied by the financial distress he/she is suffering.
Table-4: Improved Financial Knowledge has Graph-2: Improved Financial Knowledge has Direct Link with
Direct Link with Employee Productivity Employee Productivity
Response % Responded
Agree 90
Disagree 4
Don’t Know 6
Total 100
The survey results quite clearly indicate that most experts believe, even in India, we need to offer workplace financial education
to employees to boost overall productivity. India can truly reap the benefit of its demographic dividend through this process.
Government of India need to consider this seriously and take appropriate steps to encourage employers in India start offering
financial education at workplace as a part of employees benefit soon.
EPILOGUE
According to James E. Buckley, national partner-in-charge of KPMG Peat Marwick's Compensation & Benefits Practice,
“Employers are more and more recognizing that employee financial education can have a positive, tangible impact on the bottom
line”. E T. Garman, while accepting this truth hopes that, “Financial education one day will be an employee benefit that
employers must offer to be competitive. Once employers come to believe that what helps employees in life will help them in
work, they will be more likely to set up and administer successful and equitable benefits programs."
REFERENCES
1. Basu, Kaushik. (2007, July 25). BBC News. Retrieved on 24 September 2011 from "India's demographic dividend"
2. Bayer, P. J., Bernheim, B. D., & Scholz, J. K. (1996). Evidence from a Survey of Employers (NBER Working Paper
5655).
3. Bernheim, B. D. & Garrett, D. M. (1996). The determinants and consequences of financial education in the work
place: Evidence from a Survey of Households (NBER Working Paper No. 5667).
4. Braunstein, S. & Welch, C. (2002). Financial literacy an overview of practice, research and policy (Federal Reserve
BulletineNo.88).
5. Broughton, Sandy. (1997). Personal finance employee education: Best practices. Conference to Explore Issues of
Financial Stress and Worker Productivity.
6. Fox, J., Bartholomae, S. & Lee, J. (2005). Building the case for financial education. The Journal of Consumer Affairs,
39(1), 195–214.
7. Garman, E. T., Leech, I. E., & Grable, J. E. (1996). The Negative Impact of employee poor personal financial behaviors
on Employers. Financial Counseling and Planning, 7.
8. Garman, E. T. & Leech, Irene E. (1996). Employers Pay a High Price For Productivity Losses Caused by the Poor
Personal Financial Behaviors of Employees.
9. Garman, E. T. (1997). Personal Financial Education for Employees--Evidence on the Bottom-line Benefits.
10. Garman, E. T., Kim, J., Kratzer, C. Y., Brunson, B. H., & Joo. (1998). Workplace financial education improves personal
financial wellness. Financial Counseling and Planning, (10)1, 79-88.
11. Garman, E. T. (1998, June). The Business Case for Financial Education, Personal Finances and Worker
Productivity, 2(1), (revised in 1999).
12. Garman, E. T., & Forgue, R. E. (2003). Personal finance (7th ed.). Boston: Houghton Mifflin.
13. Hira, T. K. & Loibl, C. (2005). Understanding the impact of employer-provided financial education on workplace
satisfaction. Journal of Consumer Affairs, 39(1), 173-194.
14. Institute of Chartered Accountants of India, (2005- Revised). Accounting Standard 15 on Employee Benefits.
15. International Labour Organization. (2012). Global Employment Trends 2012 - Preventing a deeper job crisis.
16. Joo, So-hyun. (2002). Work place education: If you provide it, which will come? Journal of Personal Finance, 1(1).
17. Kim, J. (2000). The effects of workplace financial education on personal finances and work outcomes (Doctoral
Dissertation). Blacksburg: Virginia Polytechnic Institute and State University.
18. Kim, J. (2007). Workplace financial education program: Does it have an impact on employees' personal finances?
Journal of Family and Consumer Science, 99(1), 43-47.
19. Kim, J., Sorahindo, B. & Garman, E. T. (2006). Relationship between financial stress and work place absenteeism of
Credit Counseling Clients. Springer Science+Business Media, Inc.
20. Kratzer, C. Y., Brunson, B. H., Garman, E.T., Kim, J., & Joo, S. (1998). Financial Education in the workplace: Result
of a research study. Journal of Compensation and benefits. 14(3), 24-27.
21. Association for Financial Planning and Education. Neilson, R. B. (2010). Assessing Financial Wellness Via Computer
Assisted Telephone Interview.
22. PFEEF (2010). Authorized users of the Personal Financial Wellness Scale. Retrieved from
http://www.personalfinancefoundation.org/docs/IFDFW_Permission_Use_Chart.pdf
23. Prawitz, A. D., Garman, E. T., Sorhaindo, B., O’Neill, B., Kim, J., & Drentea, P. (2006). In Charge financial
distress/financial well-being scale: Development, administration, and score interpretation. Financial Counseling and
Planning, 17(1), 34-50.
24. Quinn, J. M. (2000). Mainstreaming Financial Education as an Employee Benefit. Journal of Financial Planning.
25. To promote and facilitate financial education in the work place. Retrieved from
http://www.personalfinancefoundation.org/
26. Unbiased financial education programme to help your employees. Retrieved from http://www.financialfinesse.com/
27. OECD’s Financial Education Site. OECD has 75 member countries including India. Retrieved from
http://www.financial-education.org/
28. Official Census of India Website. Retrieved from http://www.censusindia.gov.in/
29. Ministry of Labour, Government of India: Thrust Areas. Retrieved from http://labour.nic.in/main/subject.html
*****
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IMPLICATIONS OF KNOWLEDGE MANAGEMENT SUSTAINABILITY IN LEARNING AND

SKILLS SECTOR: AN EXPLORATION AND ANALYSIS OF KNOWLEDGE MANAGEMENT
PRACTICES IN INDIA
K. K. Patra7
ABSTRACT
The present article intends to examine the importance of knowledge management in the field of learning and skill sectors in
India. Knowledge management as a core strategy that organizations worldwide are adopting to manage and leverage
organizational knowledge for sustainable business advantages. The first and foremost discipline treats intellectual capital as a
managed asset. The primary tools applied in the practice of knowledge management are organizational dynamics, process
engineering and technology. These three works in concert to streamline and enhance the flow of an organization data,
information and knowledge to deliver it to the individuals and groups engaged in accomplishing a specific item of work. The
primary goal of knowledge management is to deliver the intellectual capacity of the firm to those individuals who are taking
strategic decisions for the success of the business. This paper resumes the facts, summarizes some criticisms, recapitulates the
arguments, assesses them and summarizes many of the ethical issues in governance needing further academic debate and
research.
KEYWORDS
Knowledge, Management, Sustainable, Learning, Technology, Intellectual etc.
INTRODUCTION
“People do not manage knowledge; knowledge manages people.”

Alvin Toffler
In today’s competitive global market, companies aspire to be more socially responsible as well as sustainable and comparatively
less worried about maximizing profits, sustainability being seen itself as an achievement. An increasing number of companies are
requiring teams that can act virtually, performing without the regional boundaries. Sustainable development is a phrase, a symbol,
a slogan, a concept, a process, an action, a pathway, a guideline, a desire, a motivation, a mechanism, a measurement, an
interpretation, a relationship, an interaction, an aim, a method, a result, an outcome, as well as many other possible interpretations.
As these philosophic aspects of sustainability have been developing, an explosion of attention now given to sustainability science
has also eclipsed them. Sustainable development is a very complex concept and there are many inter-connections between the
environment and business sector. In some cases, environmental improvement and business developments may be connected, for
example, where industrial process improvements may make a plant more efficient and reduce pollution, and in other cases, the
benefits to the economy or the environment may be accompanied by costs elsewhere.
Knowledge management practices are seen as a crucial element of the global business process within organizations and a major
source of competitive advantage. It enables systematic access to business data, competitive information and market demographics
that support the decision making process. Knowledge management practice can broadly be defined as “the acquisition, sharing
and use of knowledge within organizations, including learning processes and management information systems”. It helps to
transform an individual’s tacit knowledge and experience into explicit knowledge that is readily accessible by others, which
thereby increases the structural capital. Gone are the days when companies were seen only as physical entities that converted raw
materials into tangible products. Today, physical capital is of less relative importance for creating and sustaining competitive
advantage than intellectual capital. For many companies the market value of intellectual capital is now too large to be categorized
as goodwill. The emerging recognition of knowledge and intellectual capital has laid the groundwork for new knowledge-based
concepts, theories and practices of management.
Knowledge management in the field of information technology is a nascent but rapidly growing practice that seeks to maximize
the value of an organization by helping its people to innovate and adapt in the face of change. It has been identified as a key to
maintaining the competitiveness of organizations. It also helps an organization to gain insight and understanding from its own
experience. Specific knowledge management activities help the organizations in acquiring, storing and utilizing knowledge for
such things as problem solving. It also protects intellectual assets from decay, adds to firm intelligence and provides increased
flexibility. Knowledge management is the systematic process of finding, selecting, organizing, distilling and presenting
information in a way that improves an employee’s comprehension in specific areas of interest. In the present era, knowledge
management is focusing attention from “Information Value Chain” to “Knowledge Value Chain.” The various relationships
among data, information, knowledge and wisdom are explained by taking into account the understanding relations, understanding
pattern and understanding principles. Knowledge management is not about creating central database that is somehow a complete
replica of all that is known by employees or that is embedded in the systems they use. The world has become very competitive.
The competition has also ushered in huge opportunities for anyone who is willing to prepare oneself to exploit the same
(Shridharan. 2000).
7Professor and Dean (Administration), Rourkela Institute of Management Studies, Odisha, India, dr_kkpatra@yahoo.co.in
CREATION OF SYSTEMS OF SUSTAINABLE DEVELOPMENT
Sustainable development is now being recognized as a vital component of our society in the environmental, ethical, social,
technological, economic and institutional aspects, or dimensions. The need to develop and use indicators of sustainable
development is based on the approach that only what can be measured can be managed. Developing indicators, however, require a
clear vision of sustainable development, and the definition of a framework for structuring these indicators.
TYPES OF KNOWLEDGE MANAGEMENT
The core issue of knowledge management is to place knowledge under management remit to get value from it-to realize
intellectual capital. As a pre-requisite for knowledge management, it is now increasingly becoming clear; an organization has to
cater to an individual’s emotional and physical needs (Varadan, 2000). That intellectual capital can be regarded as a major
determiner of the difference between a company’s book price and the total value of its stock. For a successful company, this
difference can be considerable, representing the difference between the way the company is seen by accountants and by the
market. For example, we can distinguish between at least four different types of knowledge management:
Valuing Knowledge
Knowledge is viewed as ‘intellectual capital’, and the focus is on quantifying and recognizing the value of the
organization’s knowledge base.
Exploiting Intellectual Property
This appeal to firms, which are looking beyond the conventional approach, based on patents etc., to more effective ways
of tapping into the commercial value of their existing knowledge base.
Capturing Project-Based Learning
As firms increasingly move towards innovation and project-based organization, many are recognizing the need to
capture the learning from individual projects and make it available throughout the organization.
Managing Knowledge Workers
The shift towards knowledge work in many sectors creates problems for traditional ways of managing and motivating
employees. In many firms, knowledge management reflects manager’s desire to increase the productivity of knowledge
workers, breaking down some of the barriers to knowledge sharing which are associated with “professionalism”.
KNOWLEDGE MANAGEMENT SYNERGY
Knowledge is a fluid mix of framed experience, values, contextual information, expert insight and grounded intuition that provide
an environment and framework for evaluating and incorporating new experiences and information. It originates and is applied in
the minds of knower. In organizations, it often becomes embedded not only in documents or repositories, but also in
organizational routines, processes, practices and norms (Anand, 2001). The goal of knowledge management is to improve both the
acquisition and the use of knowledge relevant to business success. The exploitation of existing knowledge and the development of
new knowledge provide a sound basis from which to:
 Fulfill customer’s wishes more completely,

 Move innovative products more quickly to market,
 Respond more flexibly to market changes,
 Increase productivity,
 Reduction costs.
RESEARCH METHODOLOGY
Literature survey on the subject has been done to understand the experience in the area of knowledge management. Secondary
data related to knowledge management in India obtained from various sources such as journals and newspapers). Direct personal
interview was conducted with the HRD departments of various industries.
Technological Aspects of Knowledge Management
In today’s post-industrial economy, knowledge management seems to be a critical success factor for any organization. It is a
challenging task before every CEO, how to capitalize the knowledge. The organization should develop links between the
knowledge management and general organizational design areas, such as business processes, leadership, information systems,
corporate culture, human resource management and controlling. The relationship between knowledge and other areas are
mentioned herewith:
Chart-1
Wealth from Knowledge Human Resources

Company value seen to be dependent on: People are seen to own knowledge,
intangible assets, knowledge assets, create value, and retain organizational
MANAGEMENT
intellectual capital and intellectual memory and they can leave.
KNOWLEDGE
property.
Knowledge Interdependence Organizational Learning
Cross-boundary inter-dependence Pace of change requires continuous
between organizations: customers, regeneration of organizational knowledge
suppliers, partners etc. base.
Technology
Limits of Information Systems, Innovation
Information Management, Potentials of Advantage through innovation,
World Wide Web, and Knowledge knowledge creation, knowledge, sharing
Technologies. and applications.
Sources: Knowledge Management: A Blueprints for Delivery, Tom Knight and Trevor Howes, Butterworth, Heinmann, Tokyo,
2003, p.27
KNOWLEDGE MANAGEMENT FRAMEWORK: WORK MODELS
Knowledge is high value information, which at some point resided in someone’s brain. Every employee is the most important
resource in effective knowledge management. Every organization should create an environment and culture so that knowledge
creation and sharing will be encouraged. Systems have to be put in place to extract knowledge from employees, transfer it to new
brains if required and apply to business problems and decisions. In the present situation as the computers are storing data and
information, knowledge requires a human to take action on it.
From this, it is evident that every organization has to pursue such HR policies, which create a culture to encourage knowledge
generation and dissemination. The challenge for any organization today is to utilize the knowledge that exists in an organization,
which can create or give it a differential advantage. Intelligence becomes an asset when some useful order is created out of free-
floating brainpower - that is, when it is given coherent form, Intellectual capital is packaged useful knowledge (Shivakumar,
2002).
Knowledge Management, being a set of management practices and supplemented by tools, is highly applicable in all development
projects. Sustainability of development projects does ensure the sustainable development of nation. All the stakeholders need to
be aware about the influencing factors and enhance their positive effects in development projects. A working model of knowledge
management framework is given below:
Chart-2
SUGGESTIONS FOR SUCCESSFUL KNOWLEDGE MANAGEMENT
 Every organization should continuously maintain the flexibility in order to cope with the ever-changing environment.
 Employees of the organization should be trained to identify the realistic goals and time frames keeping in mind the
constant change.
 The success of the knowledge management project would definitely improve only when there is a possibility of
changing the organizational infrastructure like Chief Knowledge Officer, and overall Knowledge facilitator.
 Knowledge management project requires investment. Return on investment should be comparable with the expected
benefit derived out of the investment.
 Every organization must upgrade the knowledge base for strengthening the knowledge management project.
Knowledge Management being a set of management practices and supplemented by tools, is highly applicable in all development
projects. Sustainability of development projects does ensure the sustainable development of nation. All the stakeholders need to
be aware about the influencing factors and enhance their positive effects in the development projects. The role of management
culture, knowledge creation and collaboration, and efficient and effective tools has been well understood by the professional
society. All we need is to develop an efficient framework that supports knowledge integration from different fields of expertise
and conduct sustainable projects. Drivers of sustainability reporting along with their description are given below:
Table-1: Drivers for Sustainability Reporting
Driver Description
Ethical Ethical obligations accepted by corporate executives
Accountability Social expectations for broader corporate accountability, transparency and improved ethical
behaviour, particularly with social and environmental issue i.e. a license to operate.
Financial To highlight the value of the business in order to attract investment, improve shareholder value
and market position i.e. increases investor confidence. Sustainability reporting could be driven
by the community recognition that sustainability generates greater economic returns.
Communication A process to enhance constructive engagement with external stakeholders.
Risk To aid in risk management (strategic, financial, operational, commercial and technical risk).
Legislation Legally obligated as part of license to operate to disclose particular areas of business
performance e.g. financial, environmental impacts, social governance.
Business Improve the operation and management of the business, i.e. cost savings from cleaner
Management production, enhance production efficiencies, lower health and safety costs, improve employee
motivation, increase access to finance, influence regulation by best practice, attract investment,
increase reputation and market advantage.
Benchmarking The ability to benchmark performance with similar businesses.
Table-2: The Global Reporting Initiative Reporting Principles
Principles Function
Transparency, and Inclusiveness Starting point in the framework and basis for all principles.
Sustainability, Relevance, and Completeness Determines what the organization should report.
Neutrality, Comparability, and Accuracy Guides the quality and reliability of the report content.
Clarity and Timeliness Concerns access to and availability of the report.
Audit ability Closes the framework and allows for report preparation and content to
be tested against expectations.
Sources: Global Reporting Initiative, 2002
KNOWLEDGE MANAGEMENT NEEDS TO REACH OUT
Many organizations are suffering acute information overload that can stifle innovation and put a brake on efficiency. Many
companies suffer more than they need to because they fail to distinguish between data, information and knowledge. Managing
knowledge involves looking both outward and inward. Some organizations still think that they are managing knowledge when
they are actually managing information. Managing knowledge involves dealing with a wide range of knowledge management
stakeholders and characteristics.
Learning: A Lifelong Challenge
‘I don’t think much of a man who is not wiser today than he was yesterday.”
Abraham Lincoln
Training is a critical activity since this helps in improving skills, attitudes and knowledge. Individuals acquire through practical
experience, knowledge, skills and attitude by the process. The earlier concept ‘training actually begins where education ends’ has
been changed to ‘training goes hand-in-hand with education’. Managers have to learn to cope with the change in their
environment with themselves. An effective system for management education should aim at equipping managers with the required
conceptual, interpersonal and team skills, for decision-making and its implementation. Business games show the short-term
impact of decisions as well as enhance the long-term planning ability of the participants. All business decisions have constrains. If
these constraints are properly understood and resources are located at the appropriate place, organizations will achieve success.
INDIA IN POST KNOWLEDGE MILLENNIUM
Knowledge management is primarily a management discipline that treats intellectual capital as a managed asset. The primary
tools applied in the practice of knowledge management are organizational dynamics, process engineering, and technology. These
three work in concert to streamline and enhance the capture and flow of an organization’s data, information and knowledge and to
deliver it to individuals and groups engaged in accomplishing a specific item of work (Goel, 1999). The new knowledge economy
presents the most attractive opportunity for lifting Indians out of poverty by enhancing overall productivity and per capital
income. Several studies, indicate that the Total Factor Productivity of a country increase by fostering a strong knowledge
economy (Murthy, 2007). India today is at a stage where it can make a range of choices, including those that would ensure
sustainability. The corporate sector must not only lead in this effort as its duty to Indian society, but also as a measure of
enlightened self-interest, since future markets worldwide would favour products and services that sub-serve the objectives of
sustainability. It would be a sad development if Indian society and the corporate sector in particular were to blindly follow the
record of what well-known scientist (Pachauri, 2009). Knowledge is the currency of the post new millennium and no other nation
comes close to representing this paradigm shift than India. Unlike other developing nations that have relied on their natural
resources or physical labour, India has cleverly used the immense power of its human capital to leapfrog into the league of
technologically advanced nations. This is seen from the rise and recognisition of India as a powerhouse of talent, which is
primarily due to the IT and technical talent that the country has demonstrated to the world in the part tow and a half decades.
CONCLUSIONS
Business sustainability entails the incorporation of the objectives of sustainable development, namely social equity, economic
efficiency and environmental performance, into a company's operational practices. Companies that compete globally are
increasingly required to commit to and report on the overall sustainability performances of operational initiatives. Knowledge is
high value information, which at some point resided in someone’s brain. Every employee is the most important resource in
effective knowledge management. Every organization should create an environment and culture so that knowledge creation and
sharing will be encouraged. Systems have to be put in place to extract knowledge from employees, transfer it to new brains if
required and apply to business problems and decisions. In the post information era, every organization adopts different strategies
to survive and flourish.
In order to survive, every organization must train the employees and managers to adopt the new method, which will help them to
acquire new skills in order to introduce knowledge creation and sharing. Knowledge management can be very useful for
organizations to survive in competitive environment. On one side it helps in improving in potential of employees, on the other
side it helps in improves capability of the organization to survive and grow. Knowledge Management is the management of
knowledge in the best possible ways. It can be a strategic strength when practiced and could be a fatal weakness, if not pursued.
Application of knowledge is the most essential task of knowledge management. To convert learning into an organizational
knowledge base that is accessible across the organization, converting information into knowledge and putting it to productive use.
Knowledge management is available everywhere but the challenge lies in how to spot them and make their best use. In the
development of a sustainable knowledge base, information should be reliable and easily accessible.
REFERENCES
1. Anand, N. V. Ram. (2001, July-September). Knowledge Management, Udyog Pragati (Paper published in the special
issues on knowledge management).The Journal for practising Managers, Mumbai: NITIE, 25(3), 66-70.
2. Goel, Sharad. (1999, December 18). India in the Knowledge Millennium-Practicing knowledge management, The
Economic Times, 8.
3. Jaishankar, Kalpana. (2007, April 16). Using human capital for global leadership. The Hindu-Business Line, 13.
4. Murthy, N. R. Narayana. (2007, May 7). Securing India’s place in the knowledge economy, The Economics Times, 6.
5. Pachauri, Rajendra K. (2009, September 21). CSR and sustainable development. The Economics Times, 9.
6. Shivakumar, Kirti. (2002, July-September). Training for Knowledge Management. Indian Journal for Training and
Development, XXXII, 129, New Delhi.
7. Sridharan, N. C. (2000, February). Shaping human excellence. The Hindu, 22.
8. Varadan, M. S. S. (2000, August 17). Knowledge Management: Key to leveraging human potential. The Hindu, 5.
*****
EMOTIONAL INTELLIGENCE IN LEADERSHIP: A CONCEPTUAL REVIEW

Vani Sarada Ramesh8
ABSTRACT
Emotional Intelligence (EI) is the ability to understand and manage both your own emotions and of people around you.
Emotions are any strong feeling, as of joy, sorrow, or fear. It is generally understood a psychological state that arises
spontaneously rather than through conscious effort and is sometimes accompanied by physiological changes. People with high
degree of Emotional Intelligence (EI) usually know what they are feeling, what this means and how their emotions can affect
other people. An American psychologist, Daniel Goleman, helped to make the idea of Emotional Intelligence very popular.
According to him, there are five main elements of Emotional Intelligence. They are: a) Self-awareness, b) Self-regulation, c)
Motivation, d) Empathy, and e) Social Skills.
Research Methodology
This is a concept paper and the researcher has adopted the method of reviewing different research articles, research journals
and case studies to collect data about Emotional Intelligence (EI) and Emotional Intelligence in Leadership, which is
consequently incorporated as a concept paper drafted by the researcher.
KEYWORDS
Emotional Intelligence (EI), High Achievers, Low Achievers, Emotions, Communication, Leaders (ship) etc.
INTRODUCTION
The term Emotional Intelligence (EI) was first appeared in 1985, in Wayne Payne`s doctoral thesis, A Study Of Emotions:
Developing Emotional Intelligence.
EQ - is a measure of your Emotional Intelligence, or your ability to use both your emotions and cognitive skills in your life.
Emotional Intelligence competencies include but are not limited to empathy, intuition, creativity, flexibility, resilience,
coping stress management, leadership, integrity, authenticity, intrapersonal skills and interpersonal skills.
Figure-1 Figure-2
IQ - a number used to express the apparent relative intelligence of a person that is the ratio multiplied by 100 of the mental age as
reported on a standardized test to the chronological age. IQ is the measure of cognitive abilities, such as the ability to learn or
understand or to deal with new situations; the skilled use of reason; the ability to apply knowledge to manipulate one's
environment or to think abstractly as measured by objective criteria (as tests); mental acuteness; logic and analytical skills.
In this Article, we look at why emotional intelligence is so important for leaders - and how one, as a leader, can improve his own.
Emotional Intelligence is the ability to recognize, acknowledge, manage and handle your emotions in such a way that promotes
personal growth. In this article, the author has given ample of practical examples to understand Emotional Intelligence perfectly.
1. A person who projects his anger on his little child just because he had a fight with his manager, or
8 Head of Department, Management Studies, Brindavan College of Commerce and Management, Karnataka, India,
saradavani23@gmail.com
2. A driver who shouts at the other drivers in the street just because the hot weather was irritating, are the examples of the
people who aren`t Emotionally Intelligent.
Emotionally Intelligent people know the real reasons behind their emotions and thus they do not confuse them with other factors.
Figure-3: Emotional Intelligence
For Example: Your best friend betrayed you in the past and as a result you developed a fear of trusting people in general then
you are not applying emotional intelligence in your life. Therefore, Emotional Intelligence is a way of identifying and managing
your emotions in such a way that you become able to control them in better way and direct them in the right direction.
Figure-4
Failing to recognize your Emotions & Emotional Intelligence:
There are many examples of people who did not develop emotional intelligence, so failed to recognize the real reasons behind
their unwanted emotions, and so ended up being unhappy and dissatisfied.
Many people feel bad without knowing why and the majority of them blame incorrect reasons for the bad feelings they get.
Why do you think many people become bad tempered when they feel stressed?
Those people have bad stress management abilities yet they always think that others are the ones to blame.
If those people were to understand that they become bad tempered because of their lack of stress management abilities then they
would have taken the first step towards becoming emotionally intelligent people.
Some people think that they are bored because the town they live in is boring but the truth is that they are bored because
something inside them needs a fix and not the place they live in.
Again becoming emotionally intelligent in such a case involves learning how to understand the real reasons behind their unwanted
emotions so that they can deal with them correctly.
Some people spend years suffering from a breakup thinking that they loved that person while the truth is that they only needed
him to compensate for one of their personal weaknesses.
Some people feel depressed thinking that their life style promotes depression while the truth is that there is a deeply buried issue
in their minds that they are afraid to bring to the surface and that is responsible for their depression.
HOW TO BECOME EMOTIONALLY INTELLIGENT
The steps for becoming emotionally intelligent are clear and well known but applying them requires lots of hard work in addition
to a solid Self-discipline. The first thing you should do in order to become emotionally intelligent is to learn how to identify the
real reasons for your emotions instead of blaming other innocent factors for them.
After recognizing the reasons behind your emotions, it is time to handle them in an intelligent way. For example, knowing that
you are angry because you had a fight with your manager should help you prevent yourself from shouting at your innocent child.
In summary, if you understood your emotions then learned how to channel them in a way that does not cause harm to you or to
the people around you then you will become an emotionally intelligent person.
EMOTIONAL INTELLIGENCE IN LEADERSHIP
In this current age of information, leaders cannot afford to ignore or even avoid follower emotions in the workplace. The
definition of emotional leadership is the leading of followers through the proper identification and management of an array of
emotions and influencing the outcome of their subsequent needs. According to Stein & Book (2000), emotions are information
and follow logical patterns. They have universals as well as specifics. Leader decisions must incorporate follower emotions about
the organization, the department, the culture and/or the project.
Figure-5 When a leader disregards follower emotions, follower attention is

divided between what they should do and want they want to do.
Followers draw the conclusion that since what they feel does not
matter to the leader then it does not matter to the organization. For
most followers, emotional distress detracts from performance
especially when that distress is a result of leader/follower conflict
regardless if the leader is a high achieving or low achieving leader.
Leading follower emotions should be the first priority for anyone
building an organization, changing an organization or simply
Sources: Authors Compilation looking to leave a legacy in an organization.
For leaders, having Emotional Intelligence is essential for success. Leaders fall into one of two categories:
- High Achieving Leaders, and

- Low Achieving leaders.
High Achieving:
The High Achieving leaders continuously address the emotional needs of followers in an effort to “bring out the best” in them.
Effective leaders rating “high” are concerned with, for and about others in addition to company profits, are optimistic about
subordinate success as well as their own. They seek ideas from followers and implement the best of these ideas for the good and
welfare of the Organization. High achieving leaders are good listeners and listen more than they speak.
Low Achieving Leaders:
Low Achieving Leaders avoid direct communication, distrust subordinates, do not consult followers, and are so preoccupied with
their own security that daily activities are designed for self-preservation and not the long-term development of followers and the
future of the organization. They are also fears to resolve the problems, excited about follower failures and guided by the concept
of “let them fail”. They provide followers with some but not all of the information needed to carry out the task, restrict
communication, and impose deadline that cause anxiety, fear and stress. The low achieving leaders overload followers and
terminate due to poor performance. They disregard follower’s emotion while high achieving leaders embrace emotional
leadership through Emotional Intelligence.
Emotional Leadership is rooted in BarOn five realms or relationships of Emotional Quotient (e.g., Emotional Intelligence). They
are:
The Interpersonal Realm
Interpersonal leaders who fall under the category of high achieving are self-directed, self controlled, and independent. They are a
step ahead in their thinking about the future of the organization, its stakeholders and what is best for all involved. High achieving
leaders consider diversity amongst followers and promote the balance between different religions, age, gender, race, and beliefs.
To be independent requires high levels of self-esteem and self-efficacy and low levels of narcissism. It requires a lack of passive
aggressive behaviour that when left unchecked, can develop into maladaptive and even pathological behaviour over the long term.
High achieving leaders address problems directly by confronting issues and resolving/managing conflict quickly. High achieving
leaders know that complete harmony in the workplace is not possible but they strive for balance amongst followers.
Low achieving leaders often create dissention through favoritism, gender bias, and/or other unequal measures. Low achieving
leaders do not rise above the day-to-day commonality of workplace politics. Often times they are at the heart of it. Self-regard and
self-actualization are critical areas for high achieving leaders. Self-regard is the realization of strengths and weaknesses of a
leader’s talents, gifts and abilities and the subsequent contentment with the results. The causal effect of contentment in the area of
self-regard affords the high achieving leader the opportunity to reach their potential and be happy with it.
BarOn calls this “self-actualization.” Low achieving leaders are tied up in the realm of self-regard, emphasizing only strengths
and denying weaknesses and never reach contentment with who they are and what they can and cannot do. Unfortunately, for low
achieving leaders, without self-regard, self-actualization is not possible and the full Interpersonal Realm is inaccessible.
Interpersonal Realm BarOn’s second realm of Emotional Intelligence is the interpersonal or the “people skills” realm. In this
realm, leader relationships are assessed in the three areas: empathy, social responsibility, and interpersonal relationships. High
achieving leaders understand that followers are emotional creations who think, feel, get excited about success and fear failure.
High achieving leaders empathize with follower emotions, whether it is to celebrate the victories or console the grief in failure.
Low achieving leaders take sides and point fingers to either take credit for follower success or humiliate followers for failing.
Low achieving leaders destroy workplace camaraderie, diminish workplace competition, and drive hard working followers to
seek employment elsewhere. Both high achieving leaders and followers have a sense of responsibility to be cooperative and
contributing members of society. Social responsibility starts at the follower level and extends throughout the organization to its
stakeholders. To be a cooperative and contributing member of society requires both leader and follower to obey the established
governmental laws, respect the diversity in a multicultural society, and do better today than yesterday. Low achieving leaders
believe the organization as well as society is a better place because they exist. It is their opinion that once they exit the scene, the
organization is doomed to fail.
High achieving leaders know that interpersonal relationships are emotionally satisfying, mutually beneficial, two-way connections
between leader and follower. Interpersonal relationships are satisfying due to a high level of trust built over a long period of time
and that both leader and follower will not let the other down except for extenuating circumstances beyond control. Low achieving
leaders disregard trust and emotional satisfaction to operate under Machiavelli-like conditions where it is better to be respected
than loved. Low achieving leaders are too stringent to be adaptable to a changing environment.
Adaptability
In BarOn’s realm of Adaptability, high achieving leaders adjust their thoughts and feelings to changing conditions and view the
world as it really is rather than how they want it to be. They define problems and take steps to resolve them. Unlike low achieving
leaders, high achievers do not mix reality with unrealistic outcomes that, no matter how hard followers try, will never come to
fruition. In the realm of adaptability, low achieving leaders continue to do the same things repeatedly each time expecting a
different outcome. They force followers to perform tedious tasks designed to show loyalty rather than actually accomplish
something of importance. Due to their lack of adaptability, low achieving leaders generate debilitating stress in their followers
because they fail to manage it in their own careers.
Stress Management
The distinct area separating high achieving leaders from low achieving leaders is the realm of Stress Management. High achieving
leaders remain cool, calm, and collected in the process of leading. They control the impulse to react by either resisting or delaying
reaction when faced with a major catastrophe or disruption in daily activities. High achieving leaders are constructive rather
destructive when life throws them curve balls knowing that life is not without its challenges and everything can work together for
good in the end. Low achieving leaders are constantly under pressure to perform and to succeed. Stress comes through poor
planning, lack of purpose in personal and professional life, and a general distrust of subordinates limiting the delegation of tasks
to accomplish the overall goal. Low achieving leaders have difficulty delegating to followers and must complete and/or
micromanage all of the tasks to insure perfection. In the end, low achieving leader perfectionism causes failure rather than success
and perfectionism negates good mood.
Good Mood
The final realm of BarOn’s Emotional Intelligence is the positive mental attitude that creates “good mood.” Good Mood is
comprised of optimism and happiness. Optimism is the maintenance of a positive outlook in the face of adversity. Optimism relies
heavily on the underlying scales of the Intrapersonal and Interpersonal Realms in order to come to fruition. High achieving
leaders must first feel good about themselves before they can effectively lead others. Similar to Good Mood, happiness or the
ability to enjoy life, relationships with others along with the ability to obtain joy from daily activities also relies on the
Intrapersonal and Interpersonal Realms in order to be realized. For the high achieving leader, optimism and general happiness is
what attracts good followers to them. High achieving leaders use optimism and happiness to motivate followers to rise above
mediocrity, to persevere, and to persist through the high and lows of task execution.
Followers of high achieving leaders do respond to a pat on the back, an “atta boy” or simple a peaceful smile that says,
“Everything is going to be alright.” Good mood is a result of proper stress management, adapting to the current environment, and
good personal relationships with others. Good mood exists in high achieving leaders who are efficacious, value themselves as
well as others and strive to be the best they can be with what they are given. Good mood is the quintessential emotional
intelligence realm and one that high achieving leaders are committed to, while low achieving leaders slip into and out of this
realm depending on the circumstances of the moment.
An emotionally intelligent leader knows that, “Good relationships and coping strategies are the key to our success…from the
initial bonding between parent and child to the ability of a manager to bring out the best in [their] employees” (Stein & Book, p.
2). According to BarOn, a balance in these five realms and their 15 underlying areas equates to good performance but it is noted
that not all high achieving leaders strictly adhere to all fifteen areas. A comparison of high performing leaders and low performing
leaders in light of BarOn’s Realms of Emotional Intelligence will yield specific steps to take in order to be a highly effective
leader in any organization. A closer look at the differences between high achieving leaders and low achieving leaders will help
develop the foundation of this comparison as explained in fugure4:
Figure-5
Self-Awareness
If you are self-aware, you always know how you feel, and you know how you are emotions, and your actions, can affect the
people around you. Being self-aware when you are in a leadership position also means having a clear picture of your strengths and
weaknesses. In addition, it means having humility.
So, what can you do to improve your self-awareness?
 Keep a Journal: Journals help improve your self-awareness. If you spend just a few minutes each day writing down
your thoughts, this can move you to a higher degree of self-awareness.
 Slow Down: When you experience anger or other strong emotions, slow down to examine why. Remember, no matter
what the situation, you can always choose how you react to it that will help you understand what your emotions are
telling you.
Self-Regulation
Leaders who regulate themselves effectively rarely verbally attack others, make rushed or emotional decisions, stereotype people,
or compromise their values. Self-regulation is all about staying in control. This element of emotional intelligence, according to
Goleman, also covers a leader's flexibility and commitment to personal accountability.
So, how can you improve your ability to self-regulate?
 Know Your Values: Do you have a clear idea of where you absolutely will not compromise? Do you know what values
are most important to you? Spend some time examining your "code of ethics." If you know what is most important to you,
then you probably will not have to think twice when you face a moral or ethical decision – you will make the right choice.
 Hold Yourself Accountable: If you tend to blame others when something goes wrong – ‘STOP’. Make a commitment to
admit to your mistakes and face the consequences, whatever they are. You will probably sleep better at night, and you will
quickly earn the respect of those around you.
 Practice being calm: The next time you are in a challenging situation, be very aware of how you act. Do you relieve your
stress by shouting at someone else? Practice deep-breathing exercises to calm yourself. Also, try to write down all of the
negative things you want to say, and then rip it up and throw it away. Expressing these emotions on paper (and not
showing them to anyone!) is better than speaking them aloud to your team. What's more, this helps you challenge your
reactions to make sure that they are fair!
Motivation
Self-motivated leaders consistently work toward their goals. In addition, they have extremely high standards for the quality of
their work.
How can you improve your motivation?
 Re-examine why you are doing this – It is easy to forget what you really love about your career. So, take some time to
remember why you wanted this job. If you are unhappy in your role and you are struggling to remember why you wanted
it, try the Five Whys technique to find the root of the problem. Starting at the root often helps you look at your situation in
a new way; and make sure that your goal statements are fresh and energizing. For more on this, see our article on Goal
Setting.
 Know where you stand – Determine how motivated you are to lead. Our ‘Leadership Motivation Assessment’ can help
you see clearly how motivated you are in your leadership role. If you need to increase your motivation to lead, and it then
directs you to resources that can help.
 Be hopeful and find something good – Motivated leaders are usually optimistic, no matter what they face. Adopting this
mindset might take practice, but its well worth the effort. Every time you face a challenge, or even a failure, try to find at
least one good thing about the situation. It might be something small, like a new contact, or something with long-term
effects, like an important lesson learned. However, there is usually something positive – you just have to look for it.
Empathy
For leaders, having empathy is critical to managing a successful team or organization. Leaders with empathy have the ability to
put themselves in someone else's situation. They help develop the people on their team, challenge others who are acting unfairly,
give constructive feedback, and listen to those who need it.
If you want to earn the respect and loyalty of your team, then show them you care by being empathic.
How can you improve your empathy?
 Put yourself in someone else's position – It is easy to support your own point of view. After all, it is yours! However,
take the time to look at situations from other people's perspectives. See our article on Perceptual Positions for a useful
technique for doing this.
 Pay attention to body language – Perhaps when you listen to someone, you cross your arms, move your feet back and
forth, or bite your lip. This body language tells others how you really feel about a situation, and the message you are giving
is not positive! Learning to read body language can be a real asset when you are in a leadership role because you will be
better able to determine how someone truly feels. In addition, this gives you the opportunity to respond appropriately.
 Respond to feelings – You ask your assistant to work late – again. In addition, although he agrees, you can hear the
disappointment in his voice. So, respond by addressing his feelings. Tell him you appreciate how willing he is to work
extra hours, and that you are just as frustrated about working late. If possible, figure out a way for future late nights to be
less of an issue (for example, give him Monday mornings off).
Social Skills
Leaders who do well in this element of emotional intelligence are great communicators. They are just as open to hearing bad news
as good news, and they are experts at getting their team to support them and be excited about a new mission or project. Leaders
who have good social skills are also good at managing change and resolving conflicts diplomatically. They are rarely satisfied
with leaving things as they are, but they are also not willing to make everyone else do the work. They set the example with their
own behavior. So, how can you improve your leadership by building social skills?
 Learn Conflict Resolution - Leaders must know how to resolve conflicts between their team members, customers, or
vendors. Learning conflict resolution skills is vital if you want to succeed.
 Improve your communication skills - How well do you communicate? Our communication quiz will help you answer
this question, and it will give useful feedback on what you can do to improve.
 Learn how to praise others - As a leader; you can inspire the loyalty of your team simply by giving praise when it is
earned. Learning how to effectively praise others is a fine art, but well worth the effort.
DEVELOPING “EXPERT” LEADER
What does the “expert” leader look like? Moreover, how would we know we are in the presence of an expert leader? The National
Research Council (NRC) (2000) suggests the following as attributes of experts. Which do you think apply to leadership?
 Experts notice features and meaningful patterns of information that are not noticed by novices (NRC).
 Experts have acquired a great deal of content knowledge that is organized in ways that reflect a deep understanding of
their subject matter (NRC).
 Experts’ knowledge cannot be reduced to sets of isolated facts or propositions but, instead, reflects contexts of
applicability: that is the knowledge is “conditioned” on a set of circumstances (NRC).
 Experts are able to flexibly retrieve important aspects of their knowledge with little attention effort (NRC).
 Though experts know their disciplines thoroughly, this does not guarantee that they are able to teach others (NRC).
 Experts have varying levels of flexibility in their approach to new situations (NRC).
So, does any of this sound like an expert leader? Which of the bullets apply? Which may not? More important, what are additional
attributes of an individual who is displaying expertise in the term of leadership? Lord & Hall (2005) would suggest that there are
six specific skill domains when it comes to leadership: task, emotional, social, identity level, meta monitoring, and value
orientation. So this is interesting…do you think that the leader needs to show expertise in each of the six domains outlined by
Lord & Hall? Seems like a tall order, but perhaps that is truly being asked of a man or woman who has chosen to take on a formal
or informal leadership role.
CONCLUSIONS
Leadership abilities vary according to rater perspective and level of emotional intelligence. In general, co-workers seem to
appreciate managers’ abilities to control their impulses and anger, to withstand adverse events and stressful situations, to be happy
with life, and to be a cooperative member of the group. These leaders are more likely to be seen as participative, self-aware,
composed, and balanced.
REFERENCES
1. Bar-On, R. (1999). Bar On Emotional Quotient Inventory: A measure of emotional intelligence (Technical manual).
Toronto, Canada: MultiHealth Systems.
2. Goleman, D. (1998). Working with emotional intelligence. New York, NY: Bantam Books.
3. Ruderman, M. N., Hannum, K., Leslie, J. B., & Steed, J. L. (2001). Leadership skills and emotional intelligence
(Unpublished manuscript). Greensboro, NC: Center for Creative Leadership.
4. Marian, N. Ruderman, & Kelly, Hannum. Emotional Intelligence–A new praxis for leaders.
5. Goleman, Daniel. (1998). Working with Emotional Intelligence.
6. Dalip, Singh. (2003). Emotional Intelligence at Work.
7. Retrieved from http://blogs.reliableplant.com/1139/emotionalintelligence.productivity
8. Retrieved from http://www.eiconsortium.org
*****
THE EFFECT OF NATIONAL CULTURE, ADAPTATION AND ENVIRONMENTAL

FACTORS IMPACT ON CROSS CULTURAL MNCS
Vedantam Leela9
ABSTRACT
Based on the literature on Multinational Corporations, I propose that the Institutional Theory and Strategic Choice theory need
a further examination in emerging MNCs from developing countries. I suggest that HQ and subsidiary unit’s relationship are
determined by three important factors: (i) the strength of the cooperation between Government and regulatory framework; (ii)
the convergence and integrations of National Cultures of HQ and subsidiary Units in Host country; and (iii) the environmental
forces that influence subsidiary unit’s performance.
This paper is built on two premises: (1) that HQ and subsidiary manager’s differ in their responses about their role in the
subsidiary in the multinational corporation, and (2) that strength of HQ–subsidiary relationship has different implications in
actualizing the MNC’s strategic goals. Using data collected from 23 HQ–subsidiary units among China, India and Africa.
Specifically, I hypothesize that Subsidiary Units managers’ can effectively deliver functional responsibilities provided they
get a greater cooperation from HQ; work in similar cultural environment; hence there is a greater positive outcome if strategic
choices of MNCs workplace environments are conducive to work in.
KEYWORDS
Culture, Control Headquarters-Subsidiary Relationship, Cross Culture Perception Gap, Multinational Corporations,
Host Government Co-operation, Workplace Environmental Concerns etc.
INTRODUCTION
Multinational Companies are long term mutual engagements between parent organization in one country and subsidiary unit in
one or more countries to execute specific transactions for mutual gain and to maximize profits and exploit the resources through
cost reduction, knowledge transfer and labour efficiency. A multinational can be defined as ‘the means of coordinating production
from one centre of strategic decision making where this coordination takes a firm across national boundaries’ (Cowling and
Sugden, 1987). The participating MNC in any country would vary in its approach by location, prevalent governmental policies
and environmental factors. Further, its performance strength is based on investment, competitiveness, activities and functions and
parent hierarchical controls, be it independent or dependent (Schuler, Jackson and Luo, 2004). MNCs have become increasingly
important because of the choice of strategic location, market entry, shared knowledge and options for growth of economy. The
role of the multinational subsidiary has become more dynamic and has attracted the interest of management scholars (Bartlett and
Ghoshal, 1986; Birkinshaw and Hood, 1998; contributions by different authors in Birkinshaw and Hood, 1998; Taggart, 1998).
The success of MNC is primarily based on the zone adaptability between two country’s national cultures.
With the increase in MNC framework, a concern generally is raised as to whether components of national culture vis. a vis. cross
culture or environmental factors play a vital role in determining the success of its operations. To address the concerns of
compatibility in divergent national cultures in functioning organizations like MNCs, I tend explore two questions in this study to,
how dimensions of national cultures propounded by Hofstede and Tromperaans affect the MNCs effectiveness? How does
compliance with: (i) governmental & regulatory framework (ii) cultural alignment between HQ and subsidiary Units in Host
Country and (iii) workplace environmental factors affect the performance of MNCs.
While considering the available literature in MNCs in International Human Resources Management (Edwards and Rees, 2007),
Briscoe, Schuler and Claus, 2009) and National Culture Dimensions of Hofstede (1991) and Trompernaars (1997), (Ivancevich
and Matterson, 1999; (Robbins and Judge, 2007) and the importance of MNCs accomplishing their assigned strategies of
exploitation of resources from foreign country. I emphasize MNCs operating in cross cultural references do face the impact of
Power distance, Individualism and Collectivism, Uncertainty Avoidance, Masculinity and Feministic, Long Term Orientation etc
(Hofstede, 1980). Moreover dimensions emerging from Task versus People and Centralized versus Decentralized do raise
concerns (Tompernaars, 1997). However, issues of governmental sanctions and environmental risks do play an important role in
ensuring the continuation of MNCs in a cross-country.
Research reflects that China and India are expanding their MNCs in cross-country framework, and both are being compared as
suitable developing nations and are being compared as emerging as power pockets in Asia, posing a challenge to the western
countries. In the insight, China and India are expanding its MNCs operations in various countries, but limited research has been
conducted to examine the cross-country dynamics of emerging MNCs between China and India. Even the general issue of cultural
adaptability and non-compatibility between these two countries is also untouched.
I suggest that it is important to understand the study of cross culture dimensions in an MNC framework for two reasons. First,
MNCs selectively apply centralization, formalization and /or socialization along business functions, areas tasks as coordination
9AssistantProfessor, Faculty of Management Studies; Executive Director: Centre of Human Resources Initiatives and Industrial
Relations Studies (CHRIIRS), National Law University, Jodhpur, Rajasthan, India, vedantamleela25@gmail.com
mechanism (Barlett and Ghoshal, 1989). Chinese MNCs have been exploring the opportunities in Africa and India based on the
required flexibility and comfort zone to simultaneously optimize economies of scale, and to increase the scope to marginalize
factors costs. Second, considering the cautious evaluation of responsive support of prevailing local governments (Barlett and
Ghoshal, 1989), the Chinese MNCs have progressively marched towards operationalizing their MNC activities and share their
knowledge jointly. Chinese MNCs have strategically and structurally gained momentum to centralize their activities in countries
Africa but not yet in India. On the other hand, India has been making a constant endeavor to gather confidence by formulating
Indian MNCs in China. With these changing priorities and preferences of cross cultural managerial issues of formulating MNCs
among China and India, while both choose the most favored destination as Africa, I argue that beyond the realm of cultural
dimensions, active support of government and social acceptance create a conduit of MNCs to be institutionalized, whereby
processes and effectiveness can be determined. I intend to examine compare the convergence, divergence and cross vergence
among the national cultures between the two nations. Doeringer (1981) restates the convergence hypothesis in weaker form by
arguing there is convergence in a broad sense, as countries develop alternative solutions to problems common to all industrial
relations systems. Differences observed among industrial relations systems are not simply random, but are rooted in individual
country responses to the underlying compulsions of industrial evolution. Williamson (1981) argues that pressure from market
forces will enforce institutional convergence on efficiency grounds. This may even result in ‘regime shopping’, as firms seek out
locations with low labour costs and standards (Streek 1992). On similar note, I intent to examine the role of government’s
initiative to face the hurdles created by the prevailing factors which ultimately influence the outcomes in determining the cross-
cultural compact ability.
When MNCs operate in host countries, MNCs have to be realistic in handing the local challenges at the two levels: firstly, it is at
the workforce level and secondly, the government. What Poole calls process of control over work relations emerges from
applicable employment contracts. Trade unions often use the method of collective bargaining, which becomes an essential
instrument to define employment relations between the actors (employees and workers). The institutional policies regarding
accommodation towards employment relations form the foundations of his approach to understanding national diversity, are
inseparable from his notion of strategic choice. The choices of actors to create conducive environment encompasses factors like
cultural values, ideologies, economic policies and public and legal policies. International labour relations is concerned with
analyzing the problems related to labour and management relations and rapid changes in the global workforce and the differences
in national cultures in dealing with these problems have seen increased incidence in MNCs. According to Prahalad and Doz
(1987), inadequacies in understanding the local industrial and political conditions often dampen the performance outcomes of
MNC Managers. The escalation in the local conflicts between MNC managers and local stakeholders could be resolved provided
the MNC’s headquarters these critical issues by familiarizing the MNCs managers with the host country and its labour concerns.
Accepting the fact that national cultures differ from country to country it is important to note that their labour relations are also
different in the context of labour costs, productivity standards, and ultimately profits. However, for Poole, if these can be
overcome and cultural meanings are properly specified, it will still be necessary to control for contingencies and different
economic systems, and to demonstrate that remaining differences are explicable in terms of an adequate theory of national
cultures. If cultural values can be translated into verifiable, measureable and implementable moral codes especially in
employment relations then it would be effective tool to ensure social integration and cooperation, for attainment of social goals.
These cultural values could be negotiated or voluntarily accepted, and then these cultural codes will highlight the strategic choices
in the industrial relations sphere. Hence, national culture plays an important, though a subordinate role in Poole’s (1986)
theoretical construct.
International firms explore opportunities to interact with complex situation where replicating domestic firms is an unrealistic
preposition. Although dimensions like economic, legal, social, political and cultural factors do play a active role in formulating a
strategic choice, but, the dominant of them all are two factors namely: (i) stability and interest of the employees to pursue the
parent institutions’ agenda in garnering the required support to bring about a desired change (Turner 1991). Inclusive of firm’s
complex network of knowledge and resource outlays, the underlying inters / intra organizational interdependencies have to be
furnished to the MNC managers to broadly understand the parent organization and the subsidiary unit’s linkages. If these
fundamentals are not designed effectively, then uncertainty may increase at the end of MNCs and will reflect in its operations and
environment. The role of parent organization would be to effectively draw the lines of distinction between degrees of
centralization and control while demarcating the degrees of decentralization and decision making process. The critical issues that
parent institution should address are whether the subsidiary units will be allowed to take independent decisions in response to the
local demands imposed by its local context (Nohria and Ghoshal, 1994), Prahalad, and Doz, 1984). The clarity has to put forth on
two issues: Firstly, the extent to which unions are integrated into the processes of managerial decision making, as opposed to
being engaged in adversarial, arm’s-length unionism. Secondly, the presence or absence of employment laws or corporate
bargaining arrangements may encourage and regulate firm-level union participation from outside the firm. In the view of
changing framework of institutions from parent to subsidiary firm’s operations, workplace environment redefines the significant
role is given to the role of strategic actors and their choice, the range of strategic choice being defined by parent institution.
However, the strategic choice analysis is criticized because it categorically ignores the presence of organized labour or
management, the recognition and participating models to draw organizational cohesiveness for labour groups and the political will
and structure of the trade union by the governmental agencies in a comparative context.
Ferner and Hyman (1992) state that although state actors intend to show preference towards appropriation of strategic choices,
they also maintain relative autonomy over the institutions. Thereby adaptation to such strategic concerns of state actors creates a
challenge of national diversity issue on one side and on the other cross-cultural pressures for convergence, divergence and cross-
vergence to be present. Industrial Relations in both countries do reflect upon the key dimensions like strong points and degree of
firmness of institutions. The emergence of ‘centrally controlled decentralization’ has been trend since 1990. According to Ferner
and Edwards 1995, argued that formal systems add strength to institutions which is generated by a careful and cautious effort of
founding members of such institutions to reflect upon their institutional ‘culture’, although institutional culture is ‘invisible’ it can
perceived by various stakeholders strategies, and of ‘tacit skills’, business processes and “how decisions are made”.
Although it appears that China and India share a great of similarity in the context of national culture, research finds
incongruence’s of regional stratification regarding the effects as Indian MNCs in China; Chinese MNCs in India and Africa.
Considering factors of regional strategy like economic, political, social, legal and liberal policies each nation, opportunities were
identified accordingly. Thus, based on the literature review, this paper identifies key dimensions of regional strategy for MNCs,
considering the prevailing constraints of dimensions of national culture and offer a thematic review of this construct primarily
from a contingency perspective and provide an overview of the relationship between environment, strategy and structure in the
MNC functioning. Therefore, motivated by the friend-foe philosophy, the study becomes more useful and meaningful to know,
whom the near competitors in MNCs and design changes in strategies appropriately.
I argue that MNCs apparent similarity and compatibility of national culture dimensions negatively relate to MNCs effectiveness,
while the non-apparent national culture dimensions positively related to MNCs effectiveness. In addition, I suggest ‘hierarchical
control’ – spins the required amount of activities and manages the interdependencies of various actors in an MNC context
(Tromprenaars, 1997). Our attempt is to make three contributions to the existing literature.
First, I was interested to expand the research on national cultures by exploring MNCs effectiveness. Hence, I intend to contribute
to the existing literature on Cross-Culture reference by focusing comparatively less researched International Human Resource
Management area of MNCs. Second, our study of cross culture MNC provides a critical evaluation and insight to a relatively
unexplored area of suitably isolating geographical places for conducting MNC activity. Third to our understanding, there are only
few researchers who have explicitly worked on cross-cultural concerns in MNCs. However, operations of MNCs would differ
from country to country although there may be similarities. In addition, by formulating a study of national cultures, it is pertinent
to highlight the component of MNC: internationalization of an ‘organization’. While an organization attempts to make a global
presence, can parent organization continue to take positive protectionist approach and continue to make its strategic decisions to
favors MNCs operations in host country? Finally I intend to add to the literature on the role of Local governmental support and
mutual and reciprocal gains in risk / peace areas where effectiveness of MNC functioning s being questioning.
REVIEW OF LITERATURE AND HYPOTHESIS
Institutional Theory: The profounder of Institutional theory argue that the institutions are primarily based on regulatory structures,
governmental agencies, laws, courts, and professions (Scott 1987a, 498). In order to ensure that Institutions operate to their full
capacity, the prerequisite conditions are: (i) stable system; (ii) they regulate social relations to maintain conformity with existing
value patterns and (iii) consistency among these patterns themselves’ (Oberman 1993). Institutional theory identifies three types
of pressure: coercive-conforming in response to unavoidable requirements, such as regulatory pressure, normative-conforming in
response to cultural norms, and mimetic-conforming to meet (mimic) the behaviors of competitors (DiMaggio and Powell 1983).
The institutional environment comprises the rules and requirements with which organizations must comply to gain the desired
rewards of support and legitimacy (DiMaggio and Powell 1983; Meyer and Rowan 1977; Zucker 1988).
Institutions emphasize that rules, laws and regulations, norms of behaviour, and cultural-cognitive orientations all but determine
behaviour more than do contingency and competitive factors (DiMaggio and Powell, 1983). Institutional actors include not only
the state and the professions, but also interest groups and public opinion (Scott, 1987b). In the search for legitimacy and
acceptance, organizations tend to behave in ways that are alike rather than different. Isomorphic behaviour is therefore seen as
widespread, conditioning is often seen as strategic behaviour. Therefore, it is considered essential to follow institutionalistic
approach for organizational success in a complex institutional environment.
Multinational Corporations: MNCs are being explored as a strategic move from home environment to another country‘s
environment either to develop and exploit business opportunities or to react to perceived threats by the competitors (Andrews
1987). As the name suggests, any company is referred to as a multinational company or corporation (M. N. C.) when that
company manages its operation or production or service delivery from more than a single country. Such a company is even known
as international company or corporation. Apart from playing an important role in globalization and international relations, these
multinational companies even have notable influence in a country's economy as well as the world economy. Increasingly in IHR,
theoretical literature has recognized multinational corporations (MNCs) as an essential control of operations across border (Doz &
Prahalad, 1984; Harzing, 1994). According to (Barlett and Ghoshal, 1998), the multinational organisation is defined by the
following characteristics feature: (i) a decentralised federation of assets and responsibilities, (ii) a management process defined by
simple financial control systems overlaid on informal personal coordination, and a dominant strategic mentality that viewed the
company’s worldwide operations as a portfolio of national business. The resource dependence framework identified that the
greater the flows of various resources between the parent and the subsidiary, the stronger the MNC will exercise control over the
HRM of the subsidiary (Kim and Mauborgne, 1993). On the other hand, when a subsidiary is to great extent embedded in a local
network; according to institutionalism theory, its HR policies and practices will otherwise be strongly influenced by local forces
(Wright and McMahan 1992; Rosenzweig and Nohria, 1994). Dicken (1994) described the production networks as a mix of intra-
and inter-firm structures of relationships, shaped by different degrees and forms of power and influence over inputs, throughputs,
and outputs. The sustenance of a MNC in host country depends upon adaptability to the prevalent national culture and thrives to
attain the strategic goals for the HQ multinational corporations (MNCs) as “networks of alliances” that cross national borders and
industrial sectors Lorange and Roos (1993). According to Scott (1981), the best way to organize depends on the nature of the
environment to which the organization must relate. The strength of a relationship between environment and strategic behaviour
suggested that changes in strategy, and in structure, are directly related to changes in the market or in general in the firm - relevant
environment (Chandler (1962). Advocating the philosophy of contingency theory, Chandler’s work has opened the door to
emergence of various theories and studies that have confirmed the close relationships between host country environment, HQ
strategy and institutional structure (Lawrence and Lorsch 1967; Thompson 1967; Venkatraman and Prescott 1990).
Moving away from the contingency theory that focuses mostly on the task environment (Thompson 1967), institutional theory
deals with choices made in response to or in compliance with an organization’s institutional environment (Bluedorn et al., 1994).
Institutional theory, which was developed from the behavioral theory of the firm, focuses on the purposeful efforts of individuals
to respond to environmental pressures in ways consistent with the institution’s rituals and formality and based on values that are
important to the institution (Stinchcombe 1997).
NATIONAL CULTURE
Why China and Indian perspective?
Research states that foundations of institutional theory would remain constant and concurs to the predispositions as long as it
operates within the framework of its own prevalent national culture, but in case of MNCs operating in host country there may be
varied change in the implementation of institutional strategy and adapting to the national culture of host country. The success to
maximize profitability and sustenance different from Parent HQ and subsidiary units operating in Host County. The dynamics and
degree of change is dependent on adaptability of Parent organization to have convergent, divergent or cross-vergence approaches
of both national cultures. Hence, presumably there two possibilities: (i) there would be high coherence between two institutional
theory constructs with similar background of national cultures; or (ii) there could be fundamental differences in implementation of
institutional theory frameworks, although there are stark similarities between the two national cultures. If the first presumption is
true then the question arises is why China took 2 decades to operationalizing its MNCs framework in India, but is investing in
countries like Africa.
Being considered as most prominent and emerging super-powerful nations, both China and India have reflected their urge to
explore and exploit resources through MNCs framework. Like phoenix rising from the ashes, the developing nations like China
and India, although has huge hurdle to face i.e., population crisis, attempted to have aggressive measures to exploit unexplored
regions. Since the emergence of liberalization, 1989 China intended to enter into Indian scenario but as per the Chinese embassy
in India, only 6 organizations have actually become operational, of which 3/4 are Chinese state owned enterprises, whereas 73
Indian MNCs have successfully being operating in China since 1990s from both private sector and public sector enterprises.
China has become one of the most favorite destinations of FDI since 1978. It is well known that the government in China plays a
significant role in the economy (e.g. EIU, 2003; OECD, 2005), and in the entry and operation of foreign MNCs (e.g. Child and
Tse, 2001; Peng, 2003). In other words, uncertainty and (formal or informal) government interference characterize the
institutional environment in China, and how foreign MNCs manage the government relationship effectively is assumed crucial to
their operation (e.g. Sanyal and Guvenli, 2000). Therefore, China provides us a rich context to explore this issue. However, very
few studies were reported for in China so far (e.g. Luo, 2001; Osland and Björkman, 1998; Peng, 2000; Sanyal and Guvenli,
2000), and based on the above, underlying hypothesizes has been formulated.
Adaptability of national culture and relations between HQ and MNCs (subsidiary units)
The essence of a MNC to make its presence felt in the host country is through a new concept “anticipation of worldwide
innovation”. The forces of such concept provide required thrust for an MNC to develop diverse and dispersed capability within its
on subsidiary units (Bartlett and Ghoshal, 1991). Although it is not practiced to become competitive, innovation should solely be
developed at home, where this innovation and knowledge is sought dispersed to the subsidiaries and companies around the world.
Most important aspect of any MNCs in the degree of adaptation required to blend and merge its national culture of parent
organization with that of the MNC operating as subsidiary units in Host country. Therefore, to meet with the local and regional
competitiveness, it is ideal that MNCs demonstrate a greater deal of autonomous decision-making in its subsidiaries and
companies.
Kostova (1999), in her research based on resource dependence theory and institutional theory, argues that MNC subsidiaries “may
develop perceptions of dependence on the parent” due to various resources such as technology, capital, and promotion of the
subsidiary staff. She suggests that “under such conditions of dependency and intra-organizational competition”, a subsidiary will
try to implement parent company’s practices as a way of gaining internal legitimacy. Therefore, contextually, new ideas,
innovation and knowledge are sought to be developed within each individual subsidiary, or likewise sought dispersed to the entire
network of the MNC. Many modern MNCs will therefore, most likely, need to choose a transnational strategy, because many
MNCs must master both the art of cost reduction and local differentiation to maintain its competitive edge (Bartlett and Ghoshal,
1991). In an interesting observation, Edwards (2004) points out that “employees, as actors at various levels of plant may be
reluctant to share their knowledge, expertise with their counter parts expatriate employees, for fear of undermining their
performance within the group”. Therefore to conclude, there could be organizational politics could play a vital role in making a
decisive factor of what and how much of National cultural practices could transfer from HQ to MNCs. The strategic choices made
and tactics followed would result from either: (i) external competition pressures or (ii) internal politics (Edwards, 2004) just to
retain the competitive advantage.
H1a: The degree of assertion of HQ to transfer their national culture dimensions to their MNCs in host countries will be more in
organizations with high centralization.
H1b: The negative effect of cross-cultural assertion on non-adaptation towards HQ parent cultures will be stronger when host
countries follow liberal decision-making framework.
Linkages Between Cross National Culture and Role of Government and Regulatory Agencies
It has been an emerging concept of ‘conformity to the codes of conduct being drawn up the international organizations that
address aspects of industrial relations. The OECD guidelines, 1976, which form the basis for tripartite declaration on social policy
of MNC’s, were ultimately adopted in 2000 after a long deliberation and revision. Under the patronage of UN, 50 large MNCs
have signed a global compact which quiet signifies that these MNCs will follow principles laid under the code to maintain
freedom of right to form association, right to collectively bargain, prohibit child labour etc, health and safety of the employees,
levels of wages, and anti-discrimination. With the growing upsurge in MNCs across the globe, the need is being felt to incorporate
the principles relating to codes of conduct in the international trade agreements in it. There needs to be a degree of compliance
and conformity to be followed in the host country where these codes are strictly adhered. More so, the local governmental
agencies, enforcement agencies and regulatory authorities would be tracking the performance of MNCs in the host country. It is
obligation of the HQ in parent organization, to ensure that appropriate declarations are duly disclosed. Managing the issues
connected with employment and employability are related to bringing about a balance between commitment and control (Walton,
1985). The MNCs do often face the criticism of having a struggle for legitimacy of management’s decision-making process to
ensure smooth internal functioning in a host country. Thus, resulting into constant forces to be present from within and outside the
MNC. On one hand, MNCs face a continued comparison of employees to be treated on par with the HQ in the home country and
on the other, to main the trust and faith of the external stakeholders is always a challenge. The HQ strategization to meet local
needs and responsiveness may be to such an extent that, managers may be forced to appreciate local culture, although there may
ideological clash to acclimatize to existing differences. According to Marginson et al, 2004 , there are six factors which are
potential influencing factors namely business alignment, management structure, industrial relations platform, management policy,
employee side orientation and European works council. To conclude, when MNCs operate in multiple regions, through various
integrated systems like internal joint ventures, mergers and acquisitions, or wholly owned subsidiary units etc, it would be
difficult to anticipate a best picture perfect outcomes unless there is parallel political power/authority of substance is present to
support such cross cultural MNCs to operate. Such MNCs should also have strong HQ coordination in shouldering the integrated
management systems to face the force of directly opposite country with strong industrial relations systems. Therefore, cultural
alignment and compatibility becomes an essential ingredient for successful MNCs functioning with effective governance system
in the right perspective.
H2a: The degree of conformation between MNCs towards governmental demands is less where National Cultures are more
democratic in their approach.
H2b: The increase in governmental interaction and compliance with MNCs will be perceived as a source of interference and
threat by MNCs than in HQ Culture.
Linkages between cross national culture and workplace environment (external vs. Internal)
In order to maintain cordial business relations with the HQ and host country, the MNCs have to explore ways and means to attain
the right balance between the expectations of both the environments. Most of the times, it might appear the workplace
environments are similar in order to actualize the objectives, but the inherent difference could be in designing the employment
contracts, treatment being given to the employees, compensation differentials, adherence to labour practices and issues connected
with compliance with local laws. MNCs are often prone to have labour performance comparisons, which are important aspects in
management decisions on investment or divestment (Marginson et. al. 1995). When the question arises as to what and how much
of Employee Relations to be transferred, it has been pointed out that coercive comparisons may intensify the pressures for non-
managerial employees and cause tensions between management and labours (Ferner and Edwards, 1995; Marginson et. al., 1995;
Martin et.al., 1998). Large organizations do intend to carry forward their corporate culture like mission, CEO’s corporate
statement, relevant corporate projections, to create the brand value and distinctive image even in host country. To face realistic
challenges, MNCs do have best approaches from both HQ and host country culture. (Doeringer et.al. 2003). Further he states that
patters of transfer and accommodation differ from country to country n ways that suggest new management practices are blended
with traditional practices to create distinctive national ‘hybrid’ management regimes. When there is presence of strong bargaining
process in the host country and persistence of trade unionism as an active force amongst their workforces, MNCs would intend to
have either high performance driven cultures or lean organizational structures, this is to avoid the perceived threat by the trade
union workers.
H3a: The degree of assertion of HQ on MNCs will be more if workplace environment is favorable to HQ to strategically operate
its MNCs activities.
H3b: The negative effect of workplace environment will prevent MNCs from expanding their operating in host country.
Sample:
The paper forms a part of cross-country survey conducted to study the prevalence of adaptability between national culture and
relations between Head Quarter and MNCs as subsidiary units. The study sample was received from 43 MNCs, which comprised
of 137 respondents. Of the total questionnaire sent, 52 responses were rejected because they were not filled in a required manner.
The respondents comprised of ex-employees of MNCs (23%), personal contacts (25%), Client contacts (21%), Academicians and
Professors (19%) and Law Graduates (12%) who interned in various MNCs in China, India and Africa. Most of the responses
obtained by respondents from China were not completely relevant or were not of much utility.
Seventy Eight percent of the sample respondents were male and ages ranged from 26 to 45 years (mean age=33). We conducted a
random sample survey, to ask questions relating to the completion of the survey. The respondent’s interaction occurred
occasionally through emails, web-chats, and telephonic conversations. Under scheduled Phase 1 phase of the study, respondents
were provided with questionnaire relating to their reflections on home country national culture and how they perceived and
understood their experiences in Home country on the variables provided (Hofstede, 1980). In Phase II, six months later, I emailed
the second set of questionnaire relating to the cross-country experiences in MNC. The focus of the study was to understand
whether the variables regarding regulatory framework of host country and workplace environment did play a vital role in
determining the manager / expatriate’s roles and responsibilities.
Measures:
In phase I, questionnaire comprised of five items for each dimension of National Culture (Hofstede, 1980). On a similar note to
verify the other variables that could influence subsidiary managers roles, questionnaire for formulated where 5 variables each
were listed for: (i) interface between HQ and Host country for suitable functioning of MNC operations, (ii) influence of host
country regulatory framework, and (iii) conducive workplace environment. Five point Likert scales were used were scales were
(Strongly Agree = 1, Agree=2, Neutral=3, Disagree=2, and Strongly Disagree=1). ANOVA (single factor) was used to determine
the strength of each variable identified under the national culture and to check the degree of adaptability.
In questionnaire 2, Multivariate Correlation is used to determine the strength of relationships between multiple variables while
descriptive statistics are used to describe the mean, variance and the determination and description of data, it is presented through
correlation matrices.
This paper is designed to highlight relationships, to focus attention upon critical variables, and to formulate propositions for
inquisitorial inquiry and statistical testing. The dependent variable is the adaptability of National Culture. The independent
variables are: (i) the contexts (government and regulatory mechanism, (ii) conducive workplace environment, and (iii) the
strength of convergence and social adaptability of dimensions between HQ and MNC subsidiary units. After examining the
interclass correlation at different levels (reliability and inter-individual agreement) and variability between MNCs namely ICC I
and ICC 2. ICC I estimate for adaptability of home country national culture towards MNCs was 0.26. ICC 2 estimates for the
same variable was -0.15.
Similarly, estimates for ICC I and ICC 2 for conformity were 0.73 and 0.39 respectively. The estimated F test value for
adaptability was (2.08) significant at the p<0.05 level indicating that adaptability towards host country national cultures varied
between MNCs.
Table-1: Result of ANOVA - Understanding of National Cultural Dimensions of Home Country

(As Perceived By Respondents)
(A) Chinese MNCs in India (N=33) (B) Indian MNCs in China (N=42)
Dimensions of Dimensions of
SS MS F P-value SS MS F P-value
National Cultural National Cultural
Power distance 15.27 3.82 2.99* 0.02 Power distance 15.36 3.84 2.38* 0.05
Uncertainty Uncertainty
17.07 4.27 3.05* 0.02 6.46 1.61 0.99 0.41
avoidance avoidance
Individualism Vs. Individualism Vs.
6.39 1.60 1.27 0.28 3.67 0.92 0.66 0.62
Collectivism Collectivism
Feministic Vs. Feministic Vs.
4.33 1.08 0.78 0.54 13.59 3.40 2.42* 0.05
Masculinity Masculinity
Long Term Long Term
23.67 5.92 4.01* 0.00 32.17 8.04 4.41* 0.00
Orientation Orientation
Level of Significance: p = 0.05*, p < 0.05**, p = 0.01***
(C) Chinese MNCs in Africa (N=24) (D) Indian MNCs in Africa (N=37)
Dimensions of Dimensions of
SS MS F P-value SS MS F P-value
National Cultural National Cultural
Power distance 19.20 4.80 3.41* 0.01 Power distance 11.92 2.98 2.79* 0.03
Uncertainty Uncertainty
11.88 2.97 2.36* 0.06 7.81 1.95 2.17* 0.07
avoidance avoidance
Individualism Vs. Individualism Vs.
15.22 3.80 2.95*** 0.02 54.99 13.75 2.46* 0.05
Collectivism Collectivism
Feministic Vs. Feministic Vs.
18.72 4.68 3.92 0.01 65.26 16.32 2.67*** 0.03
Masculinity Masculinity
Long Term Long Term
11.17 2.79 2.26* 0.07 33.51 8.38 1.33 0.26
Orientation Orientation
Level of Significance: p = 0.05*, p < 0.05**, p = 0.01***
Sources: Data Analysis
The sample of Chinese MNCs and Indian MNCs variances (see Table 1), reflects the ANOVA result. In Section (C), I find that
there is significant difference between the Individualism vs. Collectivism in where Chinese MNCs in India and Africa. Chinese
MNCS in Africa show (F=2.95, p=0.01) and on a similar note, Feministic vs. Masculinity. Section (D) Indian MNCs in Africa
reflected (F = 2.67, p = 0.01) as against the Indian MNCs in China.
Table-2: Descriptive Statistics and Correlation between Chinese HQ and Chinese MNCs in India and Africa
Variables Mean SD 1 2 3 4 5 6
1 HQ Centralization 4.51 1.90 1
2 HQ Decentralization 3.86 1.34 0.95 1
3 High Concern for Task 2.77 1.07 0.86 0.65 1
4 High Concern for Person 4.05 0.92 0.03 0.35 -0.49 1
5 Compliance with Disclosure Norm between HQ and MNC 3.12 1.55 0.95 0.80 0.97 -0.28 1
6 Freedom To Make Strategic Choices 3.19 1.80 -0.02 0.30 -0.53 1.00 -0.33 1
N=58
Table-3: Descriptive Statistics and Correlation between Indian HQ and Indian MNCs in China and Africa
1 HQ Centralization 3.17 1.55 1
2 HQ Decentralization 3.13 1.49 0.40 1
3 High Concern for Task 2.75 1.41 0.96 0.63 1
4 High Concern for Person 2.92 1.50 0.84 -0.16 0.67 1
5 Compliance with Disclosure Norm between HQ and MNC 3.58 1.44 -0.99 -0.24 -0.90 -0.923 1
6 Freedom To Make Strategic Choices 2.18 1.36 -0.47 -0.980 -0.69 0.077 0.31 1
N=79
Results: Table2 and 3 show the descriptive statistics and correlation matrix. Model1 reflects the positive linkage between National
culture Hofstede (1980) and Tromprenaars (1997) and expectation of HQ to follow degree of similar of national culture in its
MNCs in host country. Of the six variables (dependent) HQ decentralization, high concern for task showed positive correlation.
This shows that dimensions of national culture like power distance, masculinity is mostly prevalent in Indian and Chinese MNCs.
Table-4: Descriptive Statistics and Correlation between Chinese HQ and Chinese MNC’s in India and Africa
1 Adherence to legal compliance in Host Country 3.73 1.17 1
2 Open for inspection by regulatory bodies (people) 2.50 1.10 0.89 1
3 Belief of informal networking groups 3.92 0.88 -0.39 0.08 1
4 Confirmation to HQ requirements 4.08 1.03 0.99 0.80 -0.54 1
5 Permissible technology transfer 1.68 0.92 -0.23 0.24 0.99 -0.39 1
6 Engage in Talented and Diverse workforce 1.47 0.73 -0.51 -0.06 0.99 -0.65 0.95 1
N=58
1 Adherence to legal compliance in Host Country 2.97 1.48 1
2 Open for inspection by regulatory bodies (people) 1.56 0.74 0.89 1
3 Belief of informal networking groups 3.41 1.30 -0.80 -0.44 1
4 Confirmation to HQ requirements 3.18 1.65 0.40 0.78 0.22 1
5 Permissible technology transfer 1.62 0.85 0.90 1.00 -0.46 0.76 1
6 Engage in Talented and Diverse workforce 2.93 1.54 0.35 -0.12 -0.84 -0.72 -0.09 1
N=79
Table 4 and 5 depict that both in Chinese MNCs and Indian MNCs have positive correlation towards adherence to legal
compliance in the host country and they are open for inspection by regulatory authorities. Although Chinese MNCs have reflected
negative correlation in case of confirmation to HQ, requirements but Indian MNCs have showed a positive correlation. That
would mean, Chinese MNCs do not have same ideology and culture as that of their counter-part, State owned enterprises in Home
country.
With reference to permissible technology transfer and engage in talented and diverse workforce, both MNCs have reflected a
negative correlation. This indicates that Both Chinese and Indian MNCs have differing cultural values in HQ and in MNCs
operate in Host Countries.
Table-6: Descriptive Statistics and Correlation between Chinese HQ and Chinese MNCs in India and Africa
1 Over concerned about trade secrets 3.36 1.29 1
2 Concerns over Trade union involvement in MNC functioning 1.31 0.53 0.90 1
3 Operations in Risk prone areas 2.33 1.24 0.74 0.96 1
4 Threats of militants, terror groups 2.73 1.48 -0.89 -0.61 -0.35 1
5 Positive Bilateral relations 1.32 0.51 0.82 0.99 0.99 -0.47 1
6 Advantageous Liberal Policies of Host County 2.45 1.62 -0.88 -1.00 -0.97 0.58 -0.99 1
N=58
1 Over concerned about trade secrets 3.45 1.16 1
2 Concerns over Trade union involvement in MNC functioning 1.86 1.05 -0.92 1
3 Operations in Risk prone areas 1.55 0.74 0.74 -0.41 1
4 Threats of militants, terror groups 2.07 0.95 -0.84 0.98 -0.24 1
5 Positive Bilateral relations 1.29 0.55 -0.96 0.99 -0.52 0.95 1
6 Advantageous Liberal Policies of Host County 2.36 1.21 -0.37 -0.03 -0.90 -0.20 0.10 1
N=79
Table 6 and 7 show that both countries are quite concerned about their trade secrets. Chinese MNCs show positive correlations
over trade unions movement in MNCs on the contrary, Indian MNCs have shown negative correlation over the same. Chinese
MNCs reflects positive correlation in their understanding over risk prone areas, whereas, Indian MNCs showed negative
correlation. Both Chinese and Indian MNCs show negative correlation in case of threat of militant and terror groups, positive
bilateral relations, and having advantage over liberal polices of host country. There could be a possible variation in difference of
negative correlation due to the National culture of country and political scenarios present at a given point of time.
ANALYSIS AND CONTRIBUTIONS
As a researcher, I had considered, keeping the constraints of national cultures, confined to one’s own geographical boundaries of
the country. I also have taken three broad theoretical frameworks namely HQ Adaptability and MNC cooperation, strategic choice
options, and workplace environments, such that empirically one can test the constructs. Although availability of literature in these
three constructs was relatively scanty, yet I relied on the information to probe and find out if it can create significant impact and
therefore, I did consider them.
The above-mentioned researchers had examined the issues of national culture headquarter control through centralization of
decisions. Trompernaars (1997) effectively discussed this unique characteristic feature of Headquarter to maintain high
centralization. The degree of decentralization of decisions required by MNCs to take ground level decisions, proved to a critical
factor which ensured continuous drive to present to convince the Headquarter on the matters of high priority. Therefore, I have
tried to examine the effect of centralization and decentralization, task and people.
It has been stated by Hofstede that India and china share a similar national cultural dimension. Yet when Chinese MNCs operate
in India or Africa, they are perceived as non-adaptable. They consider labour regulations as too interfering and demanding. As
trade union movement reflects active presence, Chinese MNCs have just tried to test the waters in India, whereas they have been
proactive and progressive in exploring opportunity and options in Africa.
While both Chinese and Indian MNCs have been actively perusing options to be en-cash through informal relations, observations
stand on the contrary because, Chinese national culture is predominantly governed by “Guanxi” philosophy. It could be possible
to apply customized ‘guanxi’ in Africa than in India because the legal and procedural compliance system is very transparent.
Moreover, the governmental and regulatory agencies ensure that MNCs do adhere to the predefined norms. Preference is given to
networking in-group members which breeds nepotism, favoritism etc, which automatically become the essential of Chinese
business process. On the other hand, Indian MNCs operates in China.
An area for further research is to find out the extent to which the Indian MNCs face a degree of hostility and faces a situation of
out-group in China. If so, why Indian MNCs are not open to have diverse and talented workforce and opt for geocentric approach.
Briefly, Chinese MNCs operations have been quite extensively been expanding in Africa than in India. Contrarily, Indian MNCs
demonstrate higher tolerance and adaptability to national cultures and have to develop a balance out reach between China and
Africa.
Table-8: Results of Analysis of Variance
S. Linkages Between VARIABLES Chinese HQ and Indian HQ and

No. HQ and MNC Chinese MNCs in Indian MNCs in
India and Africa India and Africa
F-Ratios F-Ratios
1 PART A HQ Centralization 0.700* 21.10**
2 Transferability of HQ HQ Decentralization 5.021** 6.817**
3 Culture to MNC in host High Concern for task 4.157** 0.755*
4 county High Concern for person 4.160** 19.653**
5 Compliance with disclosure norm between HQ and MNC 0.026* 3.687*
6 Freedom to make strategic choices 6.754** 8.309**
7 PART B Adherence to legal compliance in host county 0.897* 36.215**
8 Compliance of MNCs to Open for inspection by regulatory bodies 0.031* 0.055**
9 Host Country legal Belief of informal groups 0.048* 1.461*
10 requirements Confirmation to HQ requirements 0.082* 4.540**
11 Permissible technological transfer 0.002* 0.175*
12 Engage in talented and diverse workforce 0.746* 15.238**
13 PART C Over concerned about trade secrets 0.007* 0.001**
14 Assertion of HQ on Trade unions involvement in MNC functioning 0.351* 2.333**
15 operating MNCs across Operations in risk prone areas 4.458** 0.0639*
16 challenging workplace Threats of militants, terror groups 17.502** 1.498*
17 environment in host Positive bilateral relations 1.153* 0.194*
18 countries Advantageous liberal policies of host country 4.476** 8.044**
F-Critical =4.012 F-Critical =3.968
*p<0.01, **p<0.05
In addition, by examining the issues like militancy, terror groups, active trade union movement, bilateral relations, I argue that the
protectionist approach that should be shown by the Headquarters towards MNCs performance. The phenomenon of threat whether
perceived or real needs to be explored. Positioning and performance of MNCs are constantly posed with this challenge and
concerned of Headquarters raise because other important factors like foreign directive Investment, modes of payment, entry and
exit barriers, International Human Resources and Industrial Relations. The subsidiary mangers in MNCs often are influenced by
these factors and need constant updation of matters of sensitiveness.
From this study, two implications arise: Firstly, the extent to which China has expanded its MNCs in India is very slow and non-
explorative. To compare 73 Indian MNCs those are currently operating in China, to name of few are Marico, Dabur, Godrej, Tech
Mahindra, Emani etc. In the last two decades, only 6 telecommunication companies have established their operations in India and
have been successful. Chinese MNC like Fiberhome Technologies group, Huawei, Jiangsu Overseas Group Corporation, China
Shougang International Trade and Engineering Corporation India, CMIEC India, ZTE (www.embassy.org). However, the Africa
experience is providing a greater participation to Chinese MNCs in the recent past. Probably, China enjoys a greater mutual and
reciprocal trust, economic win-win cooperation and smooth exchange of culture between the two countries.
The point to be addressed in further research is whether trust deficit plays a vital role in ensuring Chinese and Indian counterparts
maintain arms length distance although they continue to be projected as “emerging superpowers” in Asia. Secondly, I observed
that the concept of ‘adaptability’ is a critical issue. Indian MNCs both Public Sector and Private Sector) greater local responsive
behaviour and high conformity to Headquarter strategies. Contrarily, Chinese MNCs are primarily State Owned enterprises and
strategically positioned MNCs are meant to actualize the Headquarters directions. Therefore, there is extreme amount of
Headquarter control. Moreover, the subtle issues of strategic issues are coined as “State Secrets” rather than trade secrets. China
has been actively considering a tough draft proposal on State Secret law. Therefore, transparency and disclosure of financial
performance faces causality as State Secrets are meant to be concealed. An issue of further research leads to find out the
conflicting issues between HQ state secrets and transparency and disclosure norms of host country where MNCS operate.
The results presented in Table 8, indicate that results of analysis of variations. Contrary to our hypothesis, in case of part of the
table (Transferability of HQ Cultures to MNCs in host countries), it is found that, in case of Chinese HQ and its MNCs where HQ
Centralization and in Indian HQ and its MNCs where high concern for task and on similar lines, in both cases, compliance with
disclosure norm between HQ and MNCs seem to be appear to be significant. Hence, the Hypothesis 1a is rejected. It is also found
that variables like HQ Decentralization, High Concern for person and Freedom to make strategic choices in both countries
perspective has reflected that there is statistically significant difference. Therefore, Hypothesis 1b is supported.
Hypothesis 2 signifies that importance legal compliance as this indicates the constant interaction between HQ requirements and
the degree of confirmation by the MNCs operating in the host country. This shows that MNCs conform to the legal provisions of
Host country. Further, Host country might demonstrate a degree of relaxation by providing exemptions from Foreign Direct
Investments to move freely by ensuring that operating MNCs can explore and exploit their business. This relationship in Part B
(Compliance of MNCs to Host Country legal requirements) in Both Chinese MNCs and Indian MNCs reflected statistically
significance and hence, Hypothesis 2a is supported. MNCs, largely both whether Indian, Chinese or African context reflected that
the degree of conformation between MNCs and governmental demands is less where democratic approach is adopted.
However, since compliance of host country requirements by Indian MNCs mandatorily show statistically significant difference in
areas like adherence to legal compliance in host country, open for inspection by regulatory bodies, confirmation to HQ
requirements; engage in talented and diverse workforce. Therefore, Hypothesis 2b is partially supported.
As shown in part C of Table 8, it deals with assertion of HQ on operating MNCs across challenging workplace environment in
host countries. Contrary to the hypothesis 3, it has not supported for degree of assertion of HQ on MNCs. However, variables like
Over concerned about trade secrets, Trade union movement, positive bilateral relations showed statistically significance is case of
Chinese MNCs where in Indian MNCs context, Operations in risk prone areas, Threats of militants, terror groups and positive
Bilateral relations showed statistical significance. Therefore, Hypotheses 3a and 3b not fully supported.
Major reasons why Africa seems to an attractive and a safe destination
1. Untapped national resources under exploited and underutilized market.

2. Looking for involvement of foreign companies to encash on developmental process.
3. Not so stringent and strict government owned regulatory framework.
4. Inter-industry competition is weak.
5. Organizations are primarily governed by Focus strategies or lost cost leadership strategies.
6. Enforcing institutions do not implement such rules exists to protect employees and environment, as they are too weak to
enforce them.
LIMITATIONS AND FUTURE RESEARCH
There could be many factors, which might be responsible for drawing accurate information to the test the hypothesis. We find that
there is negative inference about the variable ‘advantageous liberal policies in host country and MNCs effective performance. In
the absence of verifiable and observable data relating to which government policies, bilateral treaties, or modalities of MNC
formulation, the respondents may not be aware of the information relating to policy matters.
As subsidiary managers, the expatriates may be over-concerned about employment contracts during the international assignment
and reluctant to share crucial information. Moreover, ethnocentric approach of expatriates may also provide a gap in appreciating
the degree of change that has actually taken place from Headquarter to MNCs in host country. Thereby their contribution does not
elicit change, which can term as ‘substantial” to understand the impact on MNCS performance. Future research is required in
these intervening variables.
CONCLUSIONS
Clearly, the statistical findings has shown that national culture (Hostede, 1980; Hampden Turner and Trompenaar, 1997) has great
impact on MNCs. It is true that the scope of National Culture when looked beyond the five dimensions, it could give an in-depth
perspective of how MNCs could face the impact and how it could be measured. Irrespective of the fact that there are varied forms
of MNCs operating in different countries, yet the dynamics of working in the host country still would raise issues of greater
concern. I agree to the critiques of national cultures (Smith et al. 1996), who state that the dimensions identified and examine by
Hofstede may not be comprehensive.
I also have identified that countries not only explore options to exploits resource by formulating MNCs but also may envisage
interest to capture strategic information that could be used by parent institution. Therefore, I argue that this research would
provide scope further inquiry how MNCs who are susceptible to appreciate the pressures from the host country and deal with
cross cultural differences.
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*****
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THE CRISIS OF MORAL VALUES: A STUDY IN ARTHUR MILLER’S THE CRUCIBLE

Pawan Kumar Sharma 10
ABSTRACT
“Arthur Miller (1915-2005) is regarded as one of the celebrated and leading playwrights of America. In The Crucible, Miller
exaggerates the values of human behavior inherent in a cultured society. The tragic hero, John Proctor fights to protect his
personal dignity in the society and prefers to accept death rather than to live without a name. Proctor has been introduced as an
ordinary farmer like an ordinary sales representative in Death of a Salesman who becomes the victim of existing social order.
To be wounded by indignity, filled with growing imagination and to struggle in securing a personal dignity this is the essential
core of John Proctor’s experience. The Crucible however, accomplishes significant complexity, as we have noticed in view of
the hero’s efforts to achieve his rightful position in a society where, because of dedicated devotion to orthodoxy, human
values are perverted. The Crucible truly depicts a shameful period in the history of America when fanaticism destroyed reason
and witch-hunts reduced man to a fearful animal. Miller fights for the right to dissent.”
KEYWORDS
Tragedy, Identical Crisis, Allegory, Honesty etc.
INTRODUCTION
Arthur Miller has acted a profound and reliable critic of modern American society and he has illustrated a significant social
awareness in his plays. In this context, Miller can be compared with Ibsen. Like Ibsen he had the talent to compose a play upon
realistic bedrock. His reputation and distinction as a dramatist is known chiefly due to the fact that he copes with the most leading
and mystifying problems of his era. Miller has been regarded an artist because he has dealt with these issues in such a way as to
differentiate his compositions quite clearly from the common sociological problem play. He has experienced these social evils and
issues as living issues; his most successful characters are not merely aspects of the way of life but individuals who are divine and
values in themselves.
Set in the village of Salem Massachusetts in 1662, Arthur Miller’s The Crucible reminds us about America of the seventeen
century when there was widespread fear of witchcraft, under the authority of the church many innocent people were tortured and
put to death.
The hero, John Proctor, a farmer and a good man, along with other good citizens of Salem, is found guilty of witchcraft by the
court. However, the verdict is an injustice, representing not law but the malice of the community nurtured by jealousy and greed
among the citizenry and lust for power among the magistrates.
In fact, identical crisis is prevailing everywhere in the world, and Arthur Miller’s The Crucible is one such a candid example that
shows that a man cannot live without his good name and image in the society. If Shakespeare had lived in the twentieth century
and read Miller’s plays, he probably would not have written, ‘What is in a Name’? In this age of extensive anonymity and
alienation, a name affords a symbol of recognition. The society, which tries to suppress the individual’s ego and its concomitant
aspiration, is given a diabolical coloring in The Crucible. In this play, the society not only tries to subjugate the individual but also
to shape his thinking ability in such a way as to make him conform its codes, whether right or wrong, good or bad. It is something
akin to Nazism, fascism and present day communism.
Miller’s The Crucible is an allegory of the contemporary social-political situation. The play illustrates what happens if men leave
their conscience in the hands of the nation’s self-appointed keepers, how they are made to turn on each other, how simple, day-to-
day activities are interpreted as being dangerous to the country and detrimental to the society.
Miller decided to write a play “which would show that the sin of public terror is that it divests man of conscience, of him.” In the
play, The Crucible, John Proctor transcends the mundaness of daily life by having to face a terrible choice, a choice between his
name and life. He decides to maintain the purity of his name. In his temporary capitulation, he rationalizes the situation to himself
by saying that:
“I cannot mount the gibbet like a saint--- my honesty is broke---

I am no good man. Nothing is spoiled by giving them this lie
that was not rotten long before.” (The Crucible)
Though he is ready to sign the confession document, he would not incriminate others in the false confession. “They think to go
like saints I like not spoil their names.” (The Crucible) His confession false or true, must concern himself, only himself. When
Danforth insists, John Proctor says, “I speak my own sins.” (The Crucible) By signing the document, Proctor, with all his concern
for name, tries to hide behind an official wall censure. When Danforth insists that his confession will be nailed to the church door
for public view, Proctor decides clearer than before. Either he must side with those he sought to defend, or be a partner to their
10Assistant Professor, Vishwa Bharti P.G. College, Rajasthan, India, pawankmr937@gmail.com
prosecution. He knows he cannot buy his life by selling away his conscience. Once he is proved wrong, it would stand that others
were wrong, and hence described their fate to be hanged. He realizes the implications of signing the confession on the private,
personal side, his reasons are:
“I have three children- how may I teach them to walk like men in the world,
and sold my friends? Beguile me not! I blacken all of them when this is
nailed to the church the very day they hang for silence!” (The Crucible)
The social implications are clearly stated. John Proctor talks about why he would not allow the public display of his confession:
“Because it is my name! Because I cannot have another in my life!

Because I lie and sign myself to lies! Because I am not worth the
dust on the feet of them that hang! How may I live without my name?
I have given you my soul; leave me my name!” (The Crucible)
Proctor realizes that personal integrity is somehow tied up to a responsibility to a world that extends beyond him. From someone
who thought he was separate and at the centre of the universe, he is transformed into an individual who realizes that he is an
integral part of a large universe, with a function to perform. If he signs the confession and gives away his name in favor of life, he
would meet the same fate, which overtook Eddie Carbone in A View from the Bridge. However, by maintaining his name and
identity, Proctor is also maintaining the names and identities of his colleagues, by endorsing the stand they had taken.
John Proctor is operating within a different system of justice from the judicial system. He is revealing to the unwritten laws of
conscience while the public court, by its very nature, must maintain publicity in its proceedings. Like Saint Joan in Bernard
Shaw’s Saint Joan, Proctor recants as he comes to terms with his identity. Like Saint Joan, he will not betray the Saints and lend
his name to the injustice of the court. His name is his conscience, his immortal soul, his identity.
As Proctor faces his death, he feels relieved that he has found his integrity. He now has his identity (his name and goodness)
because the only verdict he has accepted is his own verdict—a verdict of his conscience. He has become true to himself. His wife
Elizabeth realizes this truism:
“But let none be your judge. There be no higher judge

under Heaven than Proctor is!” (The Crucible)
The Crucible has been rightly considered by critics as a successful tragedy. Proctor’s choice to embrace death rather than buy life
with a false confession is the catastrophe of the play. Moreover, his decision is preceded by agonizing soul searching. Until the
last moment of the play, he has a chance to save himself. His choosing to die answers the question, “What shall it profit a man if
he shall gain the world and lose his own soul?” Proctor’s sufferings and death are undeserved and he exhibits the strength of an
ethical conviction that can rebel death.
The Crucible can be viewed as a play of universal significance. It is of significance at all times and is of particular significance to
us today. In the Preface to another play, Miller refers to the question whether one’s vision of truth ought to be a source of guilt at
a time when the mass of men condemn it as a dangerous and devilish lie. The courage to face persecution and to die for one’s
convictions is needed in every age. The play is not obtrusively didactic. Nevertheless, it portrays with dignity and reference the
martyrdom of good men and women for freedom of conscience.
In all the major plays of Miller including The Crucible, the name is a symbol of one's reputation and honesty. Miller had written a
script for the radio entitled as ‘The Pussycat and the Plumber Who Was a Man’, at the beginning of his career in the 1940's which
deals with the same subject. The dialogue of one of the characters, Tom Thomas, foregrounds one of Miller's major concerns,
which he would develop in his mature works:
"... The one thing a man fears most next to death is the loss
of his good name. Man is evil in his own eyes, my friends,
worthless, and the only way he can find respect for himself
is by getting other people to say he's a nice fellow."1
The desire of this respect is one of the causes of Proctor's final choice. This concern chased Miller not only on stage but also in his
own life. When hauled before the House of Un-American Activities Committee, he was asked to name those whom he knew and
had any link with Communist ideology. He was faced, then, with a situation similar to Proctor's.
Miller refused naming others and his response to the Chairman seems to Paraphrase the expressions of his hero to Danforth when
Proctor said that he would speak only of his own sins and could not judge others:
“I am not protecting the Communists or the Communist

Party. I am trying to, and 1will, protect my sense of myself.
I could not use the name of another person and bring trouble
on him ... I take the responsibility for everything I have ever
done, but I cannot take responsibility for another human being.” 2
Miller had composed The Crucible three years before he was forced to play in real life the role of the character he created. The
value, Proctor attributes to his name in the end of the play, is symbolically related to the sense of Miller himself, to his family, his
fellows, and even God. Until the end, Proctor attempts to convince himself that he was no saint, no good man, and therefore, did
not deserve the others' respect. In the end of the play, however, he realizes that he does need it and recants his lie. With this act he
commits himself to a cause, something that he has avoided since the beginning of the play. The question of commitment becomes
central in the discussion of the play.
Actually, it seems difficult for Proctor to fit into a Manichean system like the Puritan. He cannot tolerate hypocrites, but at the
same time does not consider himself a saint, a religious person. At the end, he is pushed into a decision. He wishes to keep
neutral, but he comes to know that it is not possible. By telling a lie he can save his life, but with this action he will be associated
with the hypocrites he hates. By telling the truth, he corroborates and support the purity in the hearts of his neighbors and
consequently his own. With either decision, he commits himself to one side. By telling the truth, according to Elizabeth, Proctor
finally gains or finds his goodness. Proctor's final choice demonstrates Miller's constant endeavor to exhibit how the individual is
given, from integration with his society, his reason for existence, his personal significance, and his morality. Miller's plays in one
way or another foreground the aspect of moral responsibility. Proctor's apathy will be forced to turn into commitment.
In The Crucible, the conflict is not between the poor and the rich but between the authorities' power and the individual's
conscience, a conflict between a man's actions and his conception of himself. Miller brings up the question of "whether
conscience is in fact an organic part of the human being, and what happens when it is handed over not merely to the state or the
mores of the time but to one's friend or wife."3
Proctor’s awful quest for his integrity carries on in the prison scene in Act four. The nature of the attraction experienced by
Proctor, who is faced with the vision of imminent death, is summed up by the logic of Hale’s words addressed to Elizabeth:
Life, woman, life is God’s most precious gift; no principle,

however glorious, may justify the taking of it” (The Crucible)
For a moment, Proctor appears convinced of the value of Hale’s argument. Proctor suddenly senses that he “cannot mount the
gibbet like a saint.” He signs a prepared confession in order to save his life. However, as Danforth insists on making his
confession a public document, Proctor tears it up. Indignation compels him to save self-respect, and embrace martyrdom. At this
stage, Proctor displays a compelling concern for his “good name”—his personality which has been located by many critics as one
of the running themes, which highlight the fate of the protagonists in Miller’s social, plays, a concern which is equally significant
for his twentieth-century characters like Willy Loman and Eddie Carbone. Proctor dies for his good name, while his victory over
evil suggests us that this is the only course of action open before an honest man in such wrenching times.
Miller's beliefs are an indictment of the time in which he was living. The political persecutions of the McCarthy era encouraged
the atmosphere of alarm and fear, which he expresses in The Crucible. A situation like this prompts the appearance of men of
magnitude, who fight for their sense of an integral self, but at the same time produces men ready to sell whatever they have to
save their skins, and their conscience is among the items for sale. Miller comments about the horrors he observed in his time. He
states that above all, the one he considered worst is that he saw "accepted the notion that conscience was no longer a private
matter but one of state administration. I saw men handing conscience to other men and thanking other men the opportunity of
doing so."4 Miller does not cover his intentions of a moral renewal of his own country, and consequently, the restoration of its
liberal principles. Such restoration, however, is not to begin with the authorities but with the individual.
Finally, it is noteworthy to emphasize the idea of the necessity of tension. When people have to undergo their own crucible, their
real self is revealed. When there is only a calm breeze, to which everyone is used, the deepest desires and sins of the heart are
hidden, but when God’s icy wind begins to blow they come to the surface, and we come to "know who is who”. In Proctor's case,
through his crucible, he came to know who he was.
REFERENCES
1. Hogan, Robert. (1964). Arthur Miller (pp. 8). Minneapolis: University of Minnesota Press.
2. Martin, Robert A. (1978). The Theatre Essay of Arthur Miller (173). Viking Press.
3. Bigsby, C. W. E. (1984). Modern American Drama, 1945-2000. Cambridge University Press, 88.
4. Ibid, 3.
*****
ACCOUNTABILITY OF PERFORMANCE IN APPRAISAL OF TODAY’S HR FACES WITH

CHALLENGES AND ISSUES AHEAD
Hardeep Singh11 Bikram Pal Singh12
ABSTRACT
All the employees / HR faces differ in their abilities and their aptitudes. There is always some difference between the quality
and quantity of the same work on the same job being done by two different faces. A performance appraisal should not be
regarded as a social chitchat or as an adversarial proceeding. It is a purposeful, goal-directed communication link between two
professionals with a common purpose. Performance evaluation of Employees is necessary to understand each employee’s
abilities, competencies and relative merit and worth for the organization. Performance evaluation rates the employees in terms
of their performance. The process by which manager or consultant (1) examines and evaluates an employee's work behavior
by comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results to provide
feedback to the employee to show where improvements are needed and why?
Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or
fired. Main objectives of this study are: to understand the concept of performance appraisal; its benefits; tools and techniques;
to evaluate the performance appraisal system; and to study the issues and challenges to the existing performance appraisal
programmes conducted by companies and organizations. Research methodology used is this paper is primary and secondary
data. The primary data has been collected with the help of telephonic interactions, personal interviews and surveys. Secondary
data was collected from newspapers, journals, magazines, books and research papers.
KEYWORDS
Accountability, HR Faces, Performance Evaluation, Performance, Organization / Company etc.
INTRODUCTION
Performance Appraisal
A performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual
employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other
aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential
for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production,
personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation
methods. A PA is typically conducted annually. The interview could function as “providing feedback to employees, counseling
and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions”. PA is often
included in performance management systems. Performance management systems are employed “to manage and align" all of an
organization's resources in order to achieve highest possible performance. “How performance is managed in an organization
determines to a large extent the success or failure of the organization. Therefore, improving PA for everyone should be among the
highest priorities of contemporary” organizations. Some applications of PA are performance improvement, promotions,
termination, test validation, and more. While there are many potential benefits of PA, there are also some potential drawbacks.
For example, PA can help facilitate management-employee communication; however, PA may result in legal issues if not
executed appropriately, as many employees tend to be unsatisfied with the PA process. PAs created in and determined as useful in
the United States are not necessarily able to be transferable cross-culturally.
History of Performance Appraisal
Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether the
salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's
performance were found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than
the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of
appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or
continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than
not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could
be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were
confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee
performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the
traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of
11Assistant Professor, Training & Placement Officer, Department of Training & Placement, Ferozepur College of Engineering &
Technology (FCET), Punjab, India, eminentsodhi@gmail.com
12Assistant Professor, Training & Placement Officer, Department of Training & Placement, Global Group of Institutes, Punjab,
India, bikram2k2@gmail.com
appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is
known today, began from that time.
REVIEW OF LITERATURE
The amount of research regarding the topic “Performance Appraisal” is so vast. The topic is literally not new; it is as old as the
formation of the organizations. Before early 1980’s, majority of theoretical studies emphasized on revamping the rating system
within the organization. The actions were a great thing to reduce the chaotic of employee’s performance appraisal (Feldman,
1981). With the passage of the time, the methods and rating system among the employees were enhanced and received an
immense appreciation and attentions of the managers.
Behavioral Observation Scale (BOS) is one of the best techniques utilized by the managers to arte the employees. The dilemma
was on the peak in the 1960s and 1970s. In the same period couple of new innovated rating scales were introduced, which was
Behaviorally Anchored Rating Scale (BARS) and the Mixed Standard Scale (MSS). The innovations were dominant one, which
condensed the errors and improved the observation skills from the performance appraisal practice. According to the research of
Arvey and Murphy (1998), there were hundreds of thousands of researches had been taken place between the periods of 1950 to
1980, which merely focused on the different types of rating scales? Landy and Farr (1980) reviewed and researched the methods
of performance appraisal in totally a different manner, in which they understand the rater and process in an organizational context.
Other Performance appraisal reports include the rater characteristics in their report like race, gender and likeability.
After the year, 1980 the biasness among the performance appraisal system occurred outrageously, appraisal had been granted on
the favoritism or race, and gender basis rather examined the knowledge, skills and style of the work of the employee. The
accuracy criteria among the performance appraisal system clutched its grip in the start of the 1980s, where the researches were
emphasized on common psychometric biases, which include the diversified rating errors like leniency, central tendency and halo,
which were termed as rating errors in the appraisal method. It has been observed that the bias free appraisals were inevitably true
or more precisely we can say more accurate, but the concept was totally refused by the research of Hulin in 1982. According to
them, the biasfree appraisals were not necessarily accurate (Murphy & Balzer, 1989).
Researches, which had been done in the year 1980, were found the most dominating one, which contributed the appraisal system
in a great deal. The researches of the1980 also helped to clarify some presumed assumptions regarding the performance appraisal,
just like the work of Murphy (1982). Research has included the measure of employee attitudes towards the system of performance
appraisal and its acceptance (Roberts, 1990). Bernardian and Beatty (1984), suggested in their research that behavioral and
attitudinal kinds of measure ultimately prove to be better anticipator as compared with the traditional psychometric variables,
which we have declared earlier as well, like leniency, halo and discriminability. A Performance Appraisal system is very
ineffective in practice due to the dearth of approval from the end users (Roberts, 1990).
According to a number of researchers, the enhanced and upgraded performance appraisal procedure and method will enhance the
satisfaction level of the employees and definitely will improve the process of goal setting within the organization.
OBJECTIVES OF STUDY
Objective is an end that can be reasonably achieved within an expected timeframe and with available resources. In general, an
objective is broader in scope than a goal, and may consist of several individual goals. Objectives are basic tools that are
underlying all planning and strategic activities. They serve as the basis for policy and performance appraisals. Any study done
without any objective is useless.
 To study the concept; issues and challenges of PA.

 To review the performance of the employees over a given period.
 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 To diagnose the strengths and weaknesses of the individuals to identify the training and development needs of the
future.
 To provide feedback to the employees regarding their past performance.
 Provide information to assist in the other personal decisions in the organization.
 Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
 To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection,
training and development.
 To reduce the grievances of the employees.
This paper is totally based on empirical studies and data. The data used in the study is primary as well as secondary. Primary data
is collected by using descriptive research method from retail outlets of all types. Primary data was collected with the help of
personal interviews. Structured questionnaire used to collect the primary data. Contacts were carried out for the retail outlets.
Secondary data is collected from the books, professional magazines, websites, journals, research papers and newspapers.
Sampling method used was non-probabilistic sampling scheme by using convenience and judgment sampling technique. Sampling
size was 100. Respondents were all types of employees and managers of various organizations of Punjab area. There were no
geographical limitation (Punjab) while selection of the respondents. All the respondents were individuals and no group responses
were collected.
PERFORMANCE APPRAISAL TOOLS AND TECHNIQUES
Following are the tools used by the organizations for Performance Appraisals of their employees:
Table-1
 Ranking  Essay Evaluation  BARS

 Paired Comparison  Critical Incident  Forced Choice Method
 Forced Distribution  Checklists  MBO
 Confidential Report  Graphic Rating Scale  Field Review Technique
 Performance Test
Sources: Author Compilation
Ranking Method
The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a
rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative
position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job
performance against another member of the competitive group.
Forced Distribution method
This is a ranking technique where raters are required to allocate a certain percentage of rates to certain categories (e.g.: superior,
above average, average) or percentiles (e.g.: top 10 percent, bottom 20 percent etc). Both the number of categories and percentage
of employees to be allotted to each category are a function of performance appraisal design and format. The workers of
outstanding merit may be placed at top 10 percent of scale; the rest may be placed as 20% good, 40% outstanding, 20% fair and
10% fair.
Critical Incident Techniques
Under this method, the manager prepares lists of statements of very effective and ineffective behavior of an employee. These
critical incidents or events represent the outstanding or poor behavior of employees or the job. The manager maintains logs of
each employee, whereby he periodically records critical incidents of the workers behavior. At the end of the rating period, these
recorded critical incidents are used in the evaluation of the worker’s performance. Example of a good critical incident of a
Customer Relations Officer is: March 12 - The Officer patiently attended to a customers’ complaint. He was very polite and
prompts in attending the customer’s problem.
Checklists and Weighted Checklists
In this system, a large number of statements that describe a specific job are given. Each statement has a weight or scale value
attached to it. While rating an employee the supervisor checks all those statements that most closely describe the behaviour of the
individual under assessment. The rating sheet is then scored by averaging the weights of all the statements checked by the rater. A
checklist is constructed for each job by having persons who are quite familiar with the jobs. The judges then categorize these
statements and weights are assigned to the statements in accordance with the value attached by the judges.
BENEFITS OF PERFORMANCE APPRAISAL
There are a number of potential benefits of organizational performance management conducting formal performance appraisals
(PAs). There has been a consensus in the belief that PAs lead to positive implications of organizations. Furthermore, PAs can
benefit an organization’s effectiveness. One way is PAs can often lead to giving individual workers feedback about their job
performance9. From this may spawn several potential benefits such as the individual workers becoming more productive.
Other potential benefits include:
 Performance appraisals provide valuable insights about the candidate and his/her present level of achievement.
 Maintaining good communication with the candidate about performance and performance expectations creates
opportunities for different teaching approaches and alternative methods.
 An effective appraisal session reduces anxiety because the candidate knows exactly how she/he is doing.
 Productivity is increased when candidates receive regular, formative feedback on their performance.
 Two-way communications with candidates clarifies goals and maximizes the chances for achievement.
 Regular appraisal sessions remove surprises about how the quality of the performance is being perceived.
FINDINGS / SURVEY RESULTS
 More than 80% of the respondents were of the view that identification of the appraisal criteria is one of the biggest
problems faced by the top management. The performance data to be considered for evaluation should be carefully
selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms.
 Nearby 77% of the respondents responded that the purpose of the Performance appraisal process is to judge the
performance of the employees rather than the employee. The focus of the system should be on the development of the
employees of the organization.
 According to 72% of the respondents, third challenge is lack of competence. Top management should choose the
raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria
accurately. They should have the experience and the necessary training to carry out the appraisal process objectively.
 According to 90% of the respondents errors in rating and evaluation is another challenge to performance appraisal-
Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating
for all other traits) etc. may creep in the appraisal process. Therefore, the rater should exercise objectivity and fairness
in evaluating and rating the performance of the employees.
 Resistance is another challenge to performance appraisal according to 81% of the respondents. The appraisal process
may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees
should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be
clearly communicated and every employee should be made aware that what exactly is expected from him/her.
 Most of the respondents (95%) responded that most of the managers do not assess actual performance (i.e.
commitment; technical knowledge; attendance etc.). There is politics going on in every organization due to which the
actual performance appraisal is lagging behind.
 85% of the respondents responded that non-data-based assessment is another challenge to performance appraisal -
most processes rely 100% on the memory of those completing the assessment because pre-populating the forms with
data to inform decisions would be too difficult (cynicism). In addition, most assessment criteria are “fuzzy” and
subjective.
 Nearly 76% of the responded that lack of effectiveness metrics is also another challenge - many accept that the goals
of the process are to recognize results, provide feedback to address weaknesses, determine training needs, and to
identify poor performers. Unfortunately, rarely do process owners ever measure their processes’ contribution to
attaining any of these goals. Instead, the most common measure relating to performance appraisal is the percentage
completed.
 According to 80% of the respondents lack of accountability is also one of the challenges – managers are not measured
or held accountable for providing accurate feedback. While they may be chastised for completing them late, there is
no penalty for doing a half-assed job or making mistakes on them, which is incredibly common. One firm attempting
to remove a troublesome employee found that the manager had rated the individual the highest within the department
and awarded them employee of the year.
 According to most (79%) of the respondents (employees), managers are not trained - in most organizations; managers
are not trained on how to assess and give honest feedback. If the process includes a career development component, it
is even more likely that managers will not know how to enhance the career path of their employees.
 According to most, (79%) of the respondents (employees), managers are “chickens” - some managers will do almost
anything to avoid tough decisions or confrontation. Some provide no differentiation and spread “peanut butter” (an
even distribution) to avoid it, while others give everyone “above average” ratings. Some managers will provide
feedback that is extremely vague in order not to offend anyone. Rarely if ever is anyone immediately terminated
because of the process. Managers, especially do not consult employee files and data, have a tendency to evaluate
based primarily on events that occurred during the last few months (rather than over the entire year).
 According to 79% of respondents (employees), gaming the system is another problem - often managers artificially rate
individual employees to save money or to keep employees from becoming visible for promotion. Some selfishly give
a score just below that required for a pay increase, while others give scores just above the point where they would be
required to take disciplinary action.
 According to 77% of the respondents (employees) corporate culture issues is also another challenge to performance
appraisal - subjective appraisals can restrict cultural change in organizations. In some organizations, there are cultural
norms and values that influence performance appraisals. For example, in one organization new hires were
automatically given an average rating for their first year, regardless of their actual performance. One top performing
hire I knew abruptly quit after receiving this cultural gift.
 According to 79% of the respondents (employees) inconsistency across managers is also one of the major challenges -
some managers are naturally “easy raters” while others are not. As a result, employees working under easy managers
have a better chance of promotion due to their higher scores. In firms that rely heavily on the narrative portion of the
assessment, having a manager with poor writing skills may hamper an employee’s career. Without “benchmark”
numbers to set as a standard, inconsistency is guaranteed in large organizations.
 According to 75% of the respondents (employees), managers do not know the employee - managers of large and
global organizations, as well as newly hired and “transferred in” managers may be forced to do appraisals on
employees they barely know. Recently promoted managers may be forced to assess their former friends and
colleagues. Following a merger, managers are likely to be confused about whether to focus on the whole year or just
“post-merger” work.
 According to 75% of the respondents (employees) performance appraisal is a time-consuming process - most of the
forms are incredibly long and time-consuming. As a result, some managers routinely recycle “last year’s” evaluations.
If HR is required to sit in on the sessions, the amount of wasted time increases significantly.
 According to 72% of the respondents, there are some limitations of Ranking Method. The “whole man” is compared
with another “whole man” in this method. In practice, it is very difficult to compare individuals possessing various
individual traits. This method speaks only of the position where an employee stands in his group. It does not test
anything about how much better or how much worse an employee is when compared to another employee. When a
large number of employees are working, ranking of individuals, become a difficult issue. There is no systematic
procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap
judgments.
 According to 74% of the respondents the limitation of using Forced Distribution in salary administration, however, is
that it may lead low morale, low productivity and high absenteeism. Employees who feel that they are productive, but
find themselves in lower grade (than expected) feel frustrated and exhibit over a period of time reluctance to work.
 According to 73% of the respondents, Critical Incident Techniques has also some limitations. Negative incidents may
be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about the
incidents during an annual performance review sessions. It results in very close supervision, which may not be liked
by an employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or may
forget to do it.
 Checklists and Weighted Checklists method is very expensive and time consuming rather may be biased in
distinguishing the positive and negative questions. It becomes difficult for the manager to assemble, analyze and
weigh a number of statements about the employees characteristics, contributions and behaviors
CONCLUSIONS
A well-designed performance appraisal system supports an integrated human resource strategy, which enables the attainment of
organizational and business goals. Performance appraisal techniques include Ranking; Paired Comparison; Forced Distribution;
Confidential Report; Essay Evaluation; Critical Incident; Checklists; Graphic Rating Scale; BARS; Forced Choice Method; MBO;
and Field Review Technique. Major challenges to performance include lack of competence; untrained managers; limitations of
PA techniques; inconsistency across managers; time-consuming process; non-data based assessment; and corporate culture issues.
REFERENCES
1. Aswathappa, K. Human Resource Management–Text and Cases. New Delhi: Tata McGraw Hill Publishing Company
Limited.
2. Chhabra, T. N. Human Resource Management - Concept and Issues. Delhi: Prentice Hall.
3. Lubinski, D. J. & Dewis, R. V. (ed.). Assessing individual differences in human behaviour: New concepts, methods,
and finding. Davis-Black.
4. Verma, A. P. Human Resource Management. Delhi: S. K. Kataria and Sons.
5. Yoder, dale. Personnel Management and Industrial Relations. Delhi: Prentice Hall.
*****
SUITABILITY OF 360 DEGREE APPRAISAL SYSTEM TO MANAGE COMPANY’S HEALTH:

AN ANALYTICAL STUDY
Taru Gupta13
ABSTRACT
Health has its different meaning for different people, but here I want to discuss the health of a company that plays an
important role in its growth & progress. Certain factors affect the environmental health of a company. Different tools can
apply to make a healthy Environment. Kaizen is a Japanese word. It means continuous improvement with the involvement of
everybody in the organization. It is based on the belief that there will be no progress if you keep on doing things exactly the
same way all the time. Training is the one of the tool. Training is an investment is one’s life whose fruitful results show in the
form of better quality of work and better future. Training period provides a chance to give practical shape to theoretical
knowledge. A company, manager encounters many problems for which theoretical knowledge offers no solution. According to
the study, absence disturbs the efficiency of the group as well as the environment. Jobs are inter-connected if one single man
remains absent without prior notice the whole operation process is disturbed. Certain welfare schemes benefit and help to
control these disturbing factors. Study of these schemes measure the satisfaction levels of employees on various level and give
suggestions for improving the same, analyze the company’s working environment, determine how people feel and react to
their job related condition , determine the level of awareness and satisfaction on the various welfare policies, determine how
people feel and react to their job related condition. The need of the study aroused in the order to fill the gap between the
aspects, which have already been covered by the previous works.
KEYWORDS
Environment, Health, Organization, Training, Welfare Policies etc.
INTRODUCTION
Traditional appraisal systems have been developed within a paradigm that essentially conceptualizes behavior as measurable,
reducible and open to monitoring, with the idea that long-term plans can be made and people can be objectively observed.
Most 360-degree appraisal systems involve a number of people allocating ratings on several behavioral scales. An average rating
for each behavioral scale is calculated and fed back by an independent person to preserve the anonymity of the raters. From the
perspective of the new paradigm, behavior is contextual, so feedback is only meaningful when one knows who has said it and can
therefore put it into context. 360-degree feedback is the process used in the performance management system to solicit comments
and views of other individuals in the organization about an employee's performance, typically in the area of competencies and
behaviors. Broadly, a performance management system provides a linkage between an employee's contribution and:
 Organizational results;
 Recognition and rewards received by the employee;
 Career development opportunities of the employee.
In order to make this linkage rigorous and objective, performance assessment of the employee is critical. 360-degree feedback
ensures that the performance assessment process becomes more effective by involving more raters to provide inputs on an
employee's performance. This transparency is essential, since it may affect an employee's pay, career progression and training
decision.
HISTORY OF APPRAISAL SYSTEM
In any organization, Human Resources play the most important basic function in any aspect of management. Liberalization,
deregulation and competition have irreversibly altered the face of traditional area of Personnel Management. Once relegated to the
background as a stiff function, today Human Resource Management is probably the most crucial step in a change process.
Liberalization and the resulting competitive pressures have created huge demand for a skilled workforce and competent managers.
However, more importantly, organizational changes have themselves demanded transformations in the ways in which people are
selected, trained, evaluated and rewarded in organizations. Most change efforts are unlikely to succeed unless human resource
practices create a supportive climate for change.
Why are human resource practices crucial to successful change? Jeffrey Pfeffer, a professor at the Stanford Graduate School of
Business, argues that people are the principle source of competitive advantage for organizations in the current environment. This
is because the traditional sources through which business firms achieved a competitive advantage are less important in the current
dynamic environment. In the past firms achieved superiority over their rivals through product and process technology, protected
or regulated markets, access to financial resources and economies of scale. These are less important now compared to how an
organization manages its people.
13Assistant Professor, Department of Mathematics, S.S.D.W.I.T., Punjab, India, taru275@gmail.com
The changing role of HR in the present business environment has provided the impetus to new strategic HR tools such as - 360-
degree feedback. The tool is being successfully adopted in organizations across the globe to align business with HR strategies In
India there exists a knowledge gap with regard to 360 degree feedback as progressive organizations have introduced the concept
only recently with wide variations in approach and methodology. While some organizations have adopted the competency route,
yet others have focused on values.
The concept of 360 degree feedback has its roots in Industrial and Organizational Psychology when Nadler (1997) conducted an
‘Employee Attitude Survey' in which employees rated their satisfaction with their immediate supervisor and top executives. The
term "360 degree appraisal" was coined in the US in 1998. There are various opinions about the origin of this method. According
to Forbes (1996), Peter Farey of the British Airways developed upward feedback in 1973. Harris and Schaubroeck (1988), who
quoted studies conducted as far back as in 1953, offered other viewpoints and Bracken (1996) quoted a 1978 review of 24
commercial feedback instruments that existed at the time.
Recent studies and surveys, however, present a different picture. A study of Fortune 500 companies by the Wyatt Company
conducted in 1993, had reported that 26 percent companies have been employing 360-degree feedback method (Vinson, 1996).
The finding of 'recent surveys' reported by Edwards and Ewen (1996) estimate that 90 percent of the Fortune 1000 firms have
been using some form of multi-source assessments. According to a 1997 survey 8 percent of the companies used this approach
and 69 percent planned to introduce it in the mid-1980s and is emerging as a prominent HR tool being used for developmental
purposes by companies like Wipro, the Indian Tobacco Company (ITC), Motorola, SmithKline Beecham, Nokia, Seagram, Shell
(India), Phillips, Aditya Birla group, NUT and Star TV, among other progressive companies.
Although a debate is currently on in the industrial circle around the globe whether 360 degree feedback can be used as a
development tool or should it be linked with appraisal and compensation, it is being used in various forms by 8 percent of the
major companies in the US, and 69 percent companies plan to introduce it in the next 3 years. In India the process was initiated in
the mid - 1980's and it is an emerging HR tool, being used for development. 360 degree feedback is increasingly being used by
companies the world over. In India, most companies are using the approaches largely on standalone basis. Identification and
assessment of competencies can be done through 360-degree feedback. Similarly, an organization using 360 degree feedback for
development purposes needs to identify areas of improvement for the development of competencies.
360-DEGREE FEEDBACK IN PERFORMANCE MANAGEMENT SYSTEM
From the figure, an overview of a performance management system and where the 360-degree feedback fits into the process
becomes very much clear:
Table-1: Performance Management System and Full-Circle Feedback
Organizational Planning Organization’s

Business Articulation and communication of desired business results, Vision and
Environment strategy and goals, to arrive at a common understanding of Mission
the direction of the business.
Jointly set by
manager &
employee. Functional Planning
Covers all area Cascading of organizational objectives to various
of performance functions, departments, or teams.
such as: target,
responsibilities
& competencies Individual Performance Planning
Translation of the above into individual roles and
clarification expectations from employee.
Performance Assessment
Provided inputs on individual's capability, delivery, and
potential on the job for the performance period based on
expectations set.
Performance related Decision Making

Based on feedback, decisions on pay, career development and
training are taken. This affects the commitment of employees.
360-DEGREE FEEDBACK
360-degree feedback is the process of giving feedback to an employee on various aspects of performance using more than one
rater. "The 360 degree feedback process involves collecting perceptions about a person's behavior and the impact of that behavior
from the person's boss or bosses, direct reports, colleagues, fellow members in the project team, internal and external customers
and suppliers."- Lepsinger, 1997.
The 360-degree appraisal is a multi-sources process which requests feedback from an employee's supervisor/ team leader, peers,
customers (internal & external), and subordinates. All stakeholders are encouraged to participate in this process. Self-appraisal is
a vital element in this process. The feedback is intended to be used by the employee as a tool for professional development, and
by the supervisor as a tool for coaching. This process allows the manager to move into a "comfort zone" since theirs is now one of
many opinions.
The past ten years have given rise to an elevated level of competitiveness within the private and public sector. In order to meet
and survive these new challenges, organizations have reviewed and significantly changed the activities of their people
management. The 360-degree appraisal has become an innovative method that is well suited to the internal and external changes
that have taken place within competitive companies. 360-degree feedback has the following features:
 Feedback anonymity and rater confidentiality;

 More than one rater and different “sources".
Chart-1
 Raters provide feedback based on the extent of interaction,

 Degree defines extent of Feedback comprehensiveness.
Chart-2
 The "how" of performance is a typical area of assessment? An employee to the organization may view performance as
an amalgam of two distinct areas of contribution.
Chart-3
Competencies, desired behaviors, attitudes and values are demonstrated in the daily interaction of an employee with other parties,
as an employee goes about achieving the "what" of performance. These are articulated by the organization and are known to all
employees. Hence, these may form appropriate parameters of assessment by multiple sources.
SIGNIFICANCE AND NEED OF STUDY
In the current scenario - productivity, efficiency and profitability are the key words. The changing business environment has made
it the underlying factor for any successful organization to make its employees committed to organizational goals and providing
their best inputs. These necessitate the use of strategic tools in the area of HR which could make it possible that the people are
recognized, developed and motivated enough to perform their best. One of the major considerations for organizations, which have
gone for 360-degree feedback, has been strategic integration and alignment of performance management with business goals in
the increasingly competitive environment. It has helped them create a mechanism for integrating inputs, creating an appropriate
work culture, and under-bidding the company's leadership assessment and development programme.
Although it would be desirable to have a 360-degree feedback system in the entire organization, the experience in India shows
that it has so far been largely introduced at the top and in a few cases at the middle levels in progressive companies. These are
implementations are having their own modifications as per the culture of the implementing organization.
The present study tries to look into all these aspects which are more relevant with regard to the implementation of the 360-degree
feedback system in the Indian organizations and how these organizations implementing the process. There are many advantages,
which an organization is going to achieve by 360-degree feedback, but there are certain pitfalls also. Certainly considering the
Indian cultural factors are also of importance while implementation and working of the system.
IT IS EFFECTIVE...?
The concept, largely, is most democratic as it takes into account the perception of not only your supervisors, but also of several
others. The employee also perceives an element of objectivity here. Further, the linking of an individual's performance with all
relevant constituents fits in well into the emerging team-based work culture. However, its greatest strength lies in designing future
development programmes for employees. "Our 360-degree programme is just one year old, but we have begun to notice
significant changes in employee-personalities and their way of functioning," reveals Rajan Dutta, chief, HR & Quality, Escotel
Mobile Communications. "It's a powerful tool for employee growth and building a positive work culture," he adds. Adesh Goyal,
VP (HR), Hughes Software Systems, agrees. "The concept has been very successful in providing developmental inputs to
managers in our organization," he says.
But...The implementation is not so easy. "Organizations need a minimum level of maturity to adopt this concept," says T
Sreedhar, executive director & COO, TMI Network, whose company embraced 360-appraisal a year ago. There is also the culture
factor. "Indian society does not encourage criticism of authority figures. Therefore, the feedback to the boss is also not always
unbiased," says Kris Lakshmikanth, CEO, prizedjobs.com. The biggest stumbling block, however, lies somewhere else-in the
unwillingness of the top management to accept feedback from the rank and file. "It takes courage and extreme candidness to
accept that," says Dutta. Will my colleagues agree? I wonder!
SCOPE OF STUDY
The present study being a research oriented one was based mainly on the primary sources. Primary data is obtained through
personal interview and interaction with the HR managers and executives in various organizations covered under the study. This is
a descriptive research and is aimed towards describing the various advantages, the organizations aim to achieve, by using 360-
degree feedback. The information validity depends upon the ability of the Managers and Executives understanding of the
questions put forward by the researcher. The major part of the study is done through personal visits to managers and executives of
leading companies through the e-mails, and online interaction. Help of the various books and websites on the internet is also
taken.
FINDINGS OF DATA COLLECTION
The survey reveals that almost every company, which has implemented 360 degree appraisal system, has some common
objectives to serve like individual development, team building and as a support to the strategy implementation and culture change.
That is the major reason behind its being a developmental tool rather than a method to decide on pay revisions and rewards. The
organizations are also due to similar reasons are using the tool for their top or upper middle management people.
The organizations are employing the appraisal system to focus the individual performances towards the organizational goals, thus
the organizations need to have a Performance driven culture. Also before the system to be in place, there need to be proper
awareness in the organization and its people, about what are the measuring parameters and what is expected from them, so it
requires definition and articulation of competencies, desired behaviors on the part of individuals and organizational values. In
whole of the process, it is most important that such a process must have commitment of the top management, as it should start
from there. Later on, the system will be there for people, so the people need to be willing to be part of the system. So they are
required to be formalized and trained about the whole process. As the clients are also going to be a part of the feedback process,
the organizations need to have a culture, which is external or outward oriented, that is, a customer-focused culture.
The 360-degree feedback system makes it possible on individual basis to determine the areas of strength and the areas in need of
development, but for this, there need to be open communication system, which helps the people to give their views openly. In
addition, the people must be ready to accept the negative feedback and strive to improve on. To help the people work on weak
areas there need to be organizational stress on career development, training and coaching which will help a person trying to
improve on and serve the basic purpose of the development. For all this, one crucial requirement in the organization is the
partnership orientation in the management rather than top down management. The feedback system makes people all around to
give their views about others and know about oneself, making them know others and they better. This is the most appropriate for
the team-based working style in the organization.
For the system to be effective and to serve as a developmental tool in the organization, people in the organization should be role-
focused as opposed to job-driven. They must focus on the organizational needs of the hour rather than their particular job. For all
purposes to be served there need to be a proper data administration system in place in the organization, which will make it
possible to carry out the processes effectively. The people involved must be able to believe that there is an anonymous and
confidential system of feedback in place, and they could rely on and that gives and receives feedback confidentially. Also for the
effective participation of the employees to the system and useful results thereof, they should be made aware of how the data will
be used and analyzed.
IMPLEMENTATION PROCESS IN THE ORGANIZATION
In generally all the organizations implementing the 360-degree feedback process, the subjects are free to select the appraisers out
of the given number of people out of their superiors, peers, subordinates, and clients. That is out of given number of persons
some, which makes a subset to represent all the corners. Here superiors are generally involved without any choice as there are
only one or two superiors; one is able to choose out of the peers if there are more, and likewise from subordinates. The clients are
also having there say into the feedback, these may be external or internal clients depending upon the profile of the subject. The
subjects are not able to influence the feedback, as there are all persons included which are surrounding him/her. Nevertheless, the
system is also based on the empowerment to the people and encouraging leadership, so people are mostly given free hand in
exercising their own judgment to perform better. In addition, the feedback process makes it imperative to make people know
about the organizational plans, to make them aware of what is expected from them.
On a whole, appraisers are now in a position to criticize ones' performance arbitrarily as others are also giving the feedback.
Certainly, such a process makes one to know the areas of development. The person is also provided with proper training and
support to help them perform better after improving upon the weak areas. The subjects are generally provided with comprehensive
repot based on the feedback collected from people all around, which is properly and openly provided to the subject and discussed
too. The subjects are further given a free hand to exercise their creativity in their jobs and are made confident by the system that
their performance will be recognized, as people are able to believe that the system is unbiased and hence reliable. All these factors
also make the appraiser to give feedback to others in an objective manner.
BENEFITS OF 360 DEGREE APPRAISAL SYSTEMS
The major benefit, which an organization expects to achieve by having 360-degree appraisal system, includes first a confidential
system, which makes it possible to arrive at accurate ratings on the parameters of performance for the people there in. The system
helps in having an unbiased feedback in place, which makes people to rely on it and hence perform better. The individual is
provided with a comprehensive report generally which indicates how the person performed on various parameters included in the
feedback and how performance faired in the eyes of people surrounding the person. The system makes the person to improve
upon his perception about himself as all persons surrounding him have provided him with their viewpoints and hence the person is
able to know how people perceive him. Hence points out to the person areas of strength and improvement precisely.
There is hence a transparent system, which makes people rely on it and trying to improve on. Hence, the organization has open,
enthusiastic and motivated members striving to perform better than before. The feedback process includes clients also so make
them more interested in the business as they are also having a say regarding the performance of an individual dealing with them.
All this feedback process provides more insight for self, managers, hence HR people to plan initiatives, and hence to take
decisions based on all the information. As the process is mainly used for developmental purposes, the people feel less "threat"
about negative feedback, as it is believed to help one rather than making any harm. This leads to an increase in team development
and open communication in the team members as all are striving to improve upon and deliver their best. All the employees are
focused on self-development. The 360-degree appraisal system makes the whole appraisal process standardized and hence makes
it an "All-Round Evaluation" process.
LIMITATIONS OF SYSTEM
There is a major shift in the process of carrying out the 360-degree feedback and appraisal system, from the rest of the traditional
appraisal systems in place. This requires a lot of change efforts on the part of people administrating the whole process and with
regard to the people involved in it. Some organizations find it hard to implement the system, as it requires massive efforts and
attitudinal changes on the part of the people involved. One major issue in the feedback process is that people who are to be
appraised by the process (subjects) and the people appraising (appraisers), also require to be trained and the tool being used
mainly for developmental purposes, is applied in the organizations mainly to some higher management levels only. These include
top management, upper—middle, middle or to the most lower management.
The feedback process involves feedback on the various parameters given by nearly at least ten people around a subject, which
generates a lot of data to be analyzed and interpreted, hence a lot of administrative efforts and a system need to be in place, which
may make an organization ready before it go for it. The people who are crucial in the feedback process, as people are to be
appraised, people have to appraise, people will be provided with report based on feedback, and people should develop in result to
that feedback to serve the basic purpose of the process. Hence, the maturity of the people involved determines the success of the
system and how the things will go down the line.
INDIAN SCENE
While considering the Indian context, there are a few organizations, which have 360-degree system in place, the organizations are
using it mainly for developmental purposes. Here the organizations are using it mainly for top management or the upper middle
management persons who are mature enough to understand the whole process. However, the difficulty is about giving feedback to
the superior, as here in India people do not find it easy to criticize authority figures. Hence, the feedback to the boss will be
unbiased; chances of this happening are less. In addition, people usually tend to rate average to the subject, as traditionally one
needed to justify, in case he is rating the subject either too good or too bad, so people do not find it easy using whole of the ratings
provided. Similarly, it is usually hard to believe that the top management will be at any time ready to accept feedback from the
rank and the file.
On a whole, it is believed that the whole process is implemented and followed with a good spirit and is improving. The people are
provided proper support and coaching to know the areas of improvement and development. In addition, training is provided to the
individuals to work on those points and to deliver results. People are open and ready to accept negative feedback. It is believed
that on a whole the feedback results in improvement in the individual performance; but when the question arises that if the people
think there should be any other appraisal system more appropriate, generally people find that 360 degree appraisal system is better
and even if there may be certain lacunas in implementation process, it is good to be there.
RECOMMENDATIONS AND SUGGESTIONS
The research was conducted with a view to find out how organizations are implementing the 360-degree appraisal system and
what are the benefits they are having out of it. Many facts about the limitations of the system and the pitfalls of the system were
also to be investigated. The researcher would like to name the following suggestions after going through the research. They are as
follows:
First, there must be the commitment of the top management for the system to be in place and the management should be ready to
believe in individual capabilities, need and ability to development, equality to all individuals in the organization.
 To start with the system, it requires massive change in attitude and perception about the concept and working of the
feedback process. Hence there need to be carried out proper organizational change and developmental program to
support such a change process.
 Initially the concept may only be used for developmental purposes rather than linking it with pay, promotions and
rewards. People must first be given ample time to know, adjust and use the process for development.
 The organization must be having an open, transparent and confidential communication system in place to make people
say what is true and needs to be done and at the same time they should feel secure that the feedback provided on
someone will not fall back on face.
 There need to be proper report and support system, which provides guidance and coaching to the individual based on
the feedback pinpointing areas of development. Finally, there need to be proper training facilities to improve the
individual in those areas requiring development.
 The organization must be having a partnership, customer-oriented culture and employee empowerment and freedom
prevailing to help the feedback system flourish and grow.
 Finally, the organization must be able to provide people with an atmosphere where people are confident that their
performance will be recognized anyway and are having the freedom to use their own judgment and freedom in
decision.
REFERENCES
1. Aswathappa, K. Human Resource and Personnel Management. New Delhi: Tata McGraw Hill Publishing Company
Limited, 224-228.
2. Bernardin, H. John. Human Resource Management-An experimental approach. New Delhi: Tata McGraw Hill
Publishing Company Limited, 156-157.
3. Bolar, Malathi. Performance Appraisal, Readings, Case Studies and a Survey of Practices. New Delhi: Vikas
Publishing House Private Limited, 6-17.
4. Hartle, Franklin. Transforming the Performance Management Process. England: British Library Cataloguing in
Publication Data, 57-82.
5. Methis, Robert L., & John, H. Jackson. Human Resource Management. United States: South- Western College
Publishing-Thomson Learning, 391-392.
6. Neale, Frances. Handful of Performance Management. Delhi: Jaico Publishing House, 20-29.
7. Rao, T. V. 360-degree feedback and Performance Management System. New Delhi: Excel Books, 226-229.
8. Sharma, Radha R. 360-degree feedback, Competency Mapping and Assessment Centers - For personal and business
development, New Delhi: Tata McGraw Hill Publishing Company Limited, 5-70.
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17. Retrieved from http://www.gopd.co.uk/pdf/360%20Brochure.pdf
18. Retrieved from http://www.mansis.com/page1237.html
19. Retrieved from http://www.qopd.co.uk/360deg.html
20. Retrieved from http://www.themanagementor.com/kuniverse/kmailers_universe/hr_kmailers/perf_lookinginwards.html
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22. Retrieved from http://www.tutor2u.net/business/people/effectiveness_360feedback.asp
*****
MANAGEMENT BY OBJECTIVES AND ITS IMPLICATION IN INDIAN MANAGEMENT

Neetu Sharma14
ABSTRACT
MBO is both a philosophy and approach of management. It is a process whereby superiors and subordinates jointly identify
the common objectives, set the results that should be achieved by the subordinates, assess the contribution of each individual,
and integrate individuals with the organization to make the best use of organizational resources. Thus, MBO is a system for
integrating managerial activities. Managing is essential in all organized co-operation, as well as at all levels of organization in
an enterprise.
It is the function performed not only by corporation President and the army general but also of the shop supervisors and the
company commander. Managing is equally important in business as well as non-business organizations. During the last few
decades, Management as a discipline has attracted the attention of academicians and practitioners largely. The basic reason
behind this phenomenon is the growing importance of management in day-to-day life of the people.
KEYWORDS
MBO, Management, Business Environment, Employees, Organization etc.
INTRODUCTION
For many people working in modern business environments, it is hard to remember a time when non-managerial employees were
not involved with, and interested in, corporate strategy and goals. We are regularly reminded about the corporate mission
statement, we have strategy meetings where the "big picture" is revealed to us, and we are invited to participate in some decisions;
and we are aware of how our day-to-day activities contribute to these corporate goals. This type of managing has not been around
forever: It is an approach called Management by Objectives; a system that seeks to align employees' goals with the goals of the
organization. This ensures that everyone is clear about what they should be doing, and how that is beneficial to the whole
organization. It is quite easy to see why this type of managing makes sense – when the parts work in unison the whole works
smoothly too. In addition, by focusing on what you are trying to achieve, you can quickly discriminate between tasks that must be
completed, and those that are just a waste of valuable time.
During the Last fifty Years, society in every developed country has become a society of institutions. Every major social task,
whether economic performance or health care, education or the protection of the environment, the pursuit of new knowledge or
defense, is today being entrusted to big organizations, designed for perpetuity and managed by their own managements. On the
performance of these institutions, the performance of modern society—if not the survival of each individual - increasingly
depends. MBO relies on the defining of objectives for each employee and then to compare and to direct their performance against
the objectives which have been set. It aims to increase the performance of the organization by matching organizational goals with
the objectives of subordinates throughout the organization. Ideally, employees receive strong input to identify their objectives,
time lines for completion, etc. MBO includes continuous tracking of the processes and providing feedback to reach the objectives.
Only seventy-five years ago, such a society would have been inconceivable. In the society of 1900, the family still served in every
single country as the agent of, and organ for, most social tasks. Institutions were few and small. The society of 1900, even in the
most highly institutionalized country (e.g., Imperial Germany), still resembled the Kansas prairie. There was one eminence, the
central government. It looked very large on the horizon - not because it was large but because there was nothing else around it.
The rest of society was diffused in countless molecules: small workshops, small schools, the individual professional - whether
doctor or lawyer practicing by himself, the farmer, the craftsman, the neighborhood retail store, and so on. There were the
beginnings of big business - but only the beginnings. In addition, what was then considered a giant business would strike us today
as very small indeed?
The octopus, which so frightened the grandparents of today’s Americans’ Rockefeller’s giant Standard Oil Trust was split into
fourteen parts by the U.S. Supreme Court in 1911. Thirty years later, on the eve of America’s entry into World War II, every
single one of these fourteen Standard Oil daughters had become at least four times as large as the octopus when the Supreme
Court divided it - in employment, in capital, in sales, and in every other aspect. Yet, among these fourteen, there were only three
major oil companies - Jersey Standard, Mobil, and Standard of California. The other seven were small to fair-sized, playing little
or no role in the world economy and only a limited role in the U.S. economy.
While business has grown in these seventy years, other institutions have grown much faster. There was no university in the world
before 1914 that had much more than 6,000 students—and only a handful that had more than 5,000. Today the University of
6,000 Students is a pygmy; there are even some who doubt that it is viable. The hospital, similarly, has grown from a marginal
institution to which the poor went to die into the center of health care and a giant in its own right—and also into one of the most
14 Assistant Professor, Department of Commerce, Career College, Barkatullah University, Madhya Pradesh, India,
anilshrm206@gmail.com
complex social institutions around. Labor unions, research institutes, and many others have similarly grown to giant size and
complexity.
In the early 1900s, the citizens of Zurich built themselves a splendid City Hall, which they confidently believed would serve the
needs of the city for all time to come. Indeed, it was bitterly attacked by conservatives as gross extravagance, if not as
megalomania. Government in Switzerland has grown far less than in any other country in the world. Yet the Zurich City Hall long
ago ceased to be adequate to house all the offices of the city administration. By now, these offices occupy ten times or more the
space that seventy-five years ago seemed so splendid—if not extravagant.
Managers always have been challenged to produce results, but the modern manager must produce them in a time of rapid
technological and social change. Managers must be able to use this rapid change to produce their results; they must use the change
and not be used or swallowed up by it. Both they and the organizations they manage need to anticipate change and set aggressive,
forward-looking goals in order that they may ultimately begin to make change occur when and where they want it to and, in that
way, gain greater control of their environments and their own destinies.
The most important tool the manager has in setting and achieving forward-looking goals is people, and to achieve results with this
tool the manager must: first, be able to instill in the workers a sense of vital commitment and desire to contribute to organizational
goals; second, control and coordinate the efforts of the workers toward goal accomplishment; and, last, help his or her
subordinates to grow in ability so that they can make greater contributions. In hopes of increasing individual production and
contribution, managers have resorted to many different approaches: they have tried to get commitment and hard work through
economic pressure and rewards; they have sought greater production by teaching the workers the best or most efficient ways to do
a job; and they have tried to cajole their employees into a sense of well-being, hoping that their comfort would produce a desire to
contribute. All these approaches had some success, but none succeeded totally in injecting enough of that element of vitality and
adaptability into organizational life to allow it to thrive and remain viable in this age of change and socio-technological turmoil.
The impact of MBO on organizational productivity and workers motivation have been largely investigated from the empirical
standpoint included studies involving various types of organizations, from banks (Level et al., 1990), to airlines (Ellis, 1982), to
research and development workers (Moss holder and Dewhirst, 1980), to university faculty (Torstar et al., 1982), to public
administration employees (Busch, 1998). Most of the empirical research claims that a positive relationship between the
introduction of MBO and organizational productivity does exist. Rodgers and Hunter (1991) present a survey comprising 70
different studies on MBO in organizations in both the public and private sectors. The authors show that 68 out of 70 studies
reported productivity gains as the joint result of goal setting, participation in decision-making and objective feedback.
On the other side, many empirical studies on MBO show that various problems have been encountered with the effective
implementation of the MBO programs. One evidence of the survey of Rodgers and Hunter (1991) is that an effective
implementation of a MBO plan requires both the support and commitment from the top management. Some difficulties of
implementing a MBO device have been addressed also from the theoretical viewpoint, for instance Halter and Osofsky (1990)
claim that the classical formulation of MBO suffer from many shortcomings such as that it does not give protection to
subordinates in the goals negotiation process and against superior manipulation or arbitrariness. Thus one can easily derive that
the pseudo {participative property of MBO may decline to connect and the assignment of targets and goals may be a difficult
process and may not always result in increasing firm performance.
The present study starts from the analysis of a case study about the introduction of a MBO program within the major Italian
electric utility corporation (Enel). The MBO program, introduced during 1997, seemed to be quite infective with respect to the
corporate aims (eliciting higher level of effort from executives involved). Three levels of executives were subject to the MBO:
CEO, divisional directors and functional directors; evidences, gathered using interviews to executives and data available on the
MBO program, show that objectives assigned to functional directors from their superior (the divisional director) were low. As a
result, the productivity of functional directors was low. Thus, the MBO program had little influence on job performance and in
fact, the prize connected with the fulfillment of objectives was assigned to a large majority of the executives involved in the
program.
This study tried to understand how different MBO programs affect job performance and tried to give some operative suggestions
to Enel on the way to improve its existing MBO plan. The MBO plan of Enel was given a game theoretical formulation within the
agency framework and some laboratory experiments were designed and were ran in order to assess to what extent the
experimental outcomes were similar to the evidence gathered in the field study. Then, two alternative versions of the MBO game
were introduced to test the relative effectiveness of different institutions (rules for assigning payoffs) on firm performance.
BACKGROUND
Management by Objectives was introduced by Peter Drucker in the 1950s and written about in his 1954 book, The Practice of
Management. It gained a great deal of attention and was widely adopted until the 1990s when it seemed to fade into obscurity.
Partly, the idea may have become a victim of its own success: It became so much a part of the way business is conducted that it no
longer may have seemed remarkable, or even worthy of comment. In addition, partly it evolved into the idea of the ‘Balanced
Scorecard’, which provided a more sophisticated framework for doing essentially the same thing.
The “Management by Objective” (MBO) approach, in the sense that it requires all managers to set specific objectives to be
achieved in the future and encourages them to continually ask what more can be done, is offered as a partial answer to this
question of organizational vitality and creativity. As a term, Peter Drucker first used “Management by Objectives” in 1954. As a
management approach, it has been further developed by many management theoreticians, among them Douglas McGregor,
George Odiorne, and John Humble. Essentially, MBO is a process or system designed for supervisory managers in which a
manager and his or her subordinate sit down and jointly set specific objectives to be accomplished within a set time frame and for
which the subordinate is then held directly responsible.
Peter Drucker first outlined management by Objectives in 1954 in his book 'The practice of Management'. According to Drucker,
managers should avoid 'the activity trap', getting so involved in their day-to-day activities that they forget their main purpose or
objective. One of the concepts of MBO was that instead of just a few top-managers, all managers of a firm should participate in
the strategic planning process, in order to improve the implement ability of the plan. Another concept of Management by
Objectives was that managers should implement a range of performance systems, which are designed to help the organization to
function well. Clearly, Management by Objectives can thus be seen as a predecessor of Value Based Management.
All organizations exist for a purpose, and, to achieve that purpose, top management sets goals and objectives that are common to
the whole organization. In organizations that are not using the MBO approach, most planning and objective setting to achieve
these common organizational goals is directed downward. Plans and objectives are passed down from one managerial level to
another, and subordinates are told what to do and what they will be held responsible.
The MBO approach injects an element of dialogue into the process of passing plans and objectives from one organizational level
to another. The superior brings specific goals and measures for the subordinate to a meeting with this subordinate, who also brings
specific objectives and measures that he or she sees as appropriate or contributing to better accomplishment of the job. Together
they develop a group of specific goals, measures of achievement, and a period in which the subordinate commits himself or
herself to the accomplishment of those goals. The subordinate is then held responsible for the accomplishment of the goals.
The manager and the subordinate may have occasional progress reviews and reevaluation meetings, but at the end of the set
period of time, the subordinate is judged on the results the he or she has achieved. He or she may be rewarded for success by
promotion or salary increases or he or she may be fired or transferred to a job that will provide needed training or supervision.
Whatever the outcome, it will be based on the accomplishment of the goals the subordinate had some part in setting and
committed himself or herself to achieving.
USING MANAGEMENT BY OBJECTIVES
Peter Drucker outlined the five-step process for MBO shown in figure1. Each stage has particular challenges that need to be
addressed for the whole system to work effectively.
Figure-1: Five Step MBO Process
Sources: Drucker, Peter F., "The Practice of Management", 1954.
These steps are explained below:
1. Set or Review Organizational Objectives
MBO starts with clearly defined strategic organizational objectives. If the organization is not clear where it is going, no one
working there will be either.
2. Cascading Objectives Down to Employees
To support the mission, the organization needs to set clear goals and objectives, which then need to cascade down from one
organizational level to the next until they reach to everyone.
To make MBO goal and objective setting more effective, Drucker used the SMART acronym to set goals that were attainable and
to which people felt accountable. He said that goals and objectives must be:
 Specific,
 Measurable,
 Agreed (relating to the participative management principle),
 Realistic,
 Time related.
Notice the "A" in SMART is "agreed." This is sometimes referred to as "achievable" but, with MBO, agreement about the goals is
a critical element: It is not enough for the goals and objectives to be set at the top and then handed down. They must flow, or
trickle, down through various stages of agreement. The only goal that is going to be met is one that is agreed on. How much easier
is it to get buy in when the person responsible for achieving the goal had a hand in developing it? For each objective, you need to
establish clear targets and performance standards. It's by using these that you can monitor progress throughout the organization.
These are also important for communicating results, and for evaluating the suitability of the goals that have been set.
Because of the divergent views, it is very difficult to give a precise definition to the term ―Management‖. It has drawn concepts
and Principles from economics, sociology, psychology, anthropology, history, and statistics and so on. The result is that each
group of contributors has treated Management differently. Management is invariably defined as the process of ―getting things
done through the effort of others, getting from where we are to where we want to be with the least expenditure of time, money and
efforts, or coordinating individual and group efforts, or co-coordinating individual and group efforts towards super-ordinate goals.
In 1965, George S. Odiorne completed a textbook titled, Management by Objective. Just five years later, the same book was
undergoing its tenth reprinting. The fact that the term “management by objective” has now become common nomenclature to
company executives around the country attests to the success of Odiorne's literary efforts.
If the agribusiness manager devotes even a nominal amount of time to professional reading, he has no doubt encountered the term
“management by objective.” It is somewhat less likely, however, that he understands its meaning. Finally, it is extremely unlikely
that the agribusiness manager has studied the concept in detail and applied it in his own operations. Hopefully, this letter will
correct this apparent deficiency. The following discussion is designed to: (1) summarize the management related thoughts of
Professor Odiorne, (2) review the basic elements of the management-by-objective system, and (3) illustrate the practical relevance
of each system element to the area of agribusiness management.
Figure-2
Sources: Harold Koontz and Cyril O'Donnell, Principles of Management: An Analysis of Managerial Functions
According to Koontz and O ‘Donned, ‘MBO is a comprehensive managerial system that integrates many key managerial activities
in a systematic manner, consciously directed towards the effective and efficient achievement of organizational objectives’.
FEATURES OF MBO
The following are the important features of MBO:
 MBO is an approach and philosophy to management and not merely a technique.

 MBO gives emphasis open objectives.
 MBO is concerned with the participation of concerned managers I objective setting and performance reviews.
 MBO reviews performance periodically.
 Objectives in MBO provide guidelines for appropriate systems and procedures.
 MBO establishes a community of interest and a shared sense of vision among all the managers.
PROCESS OF MBO
The following are the stages involved in the MBO process:
Setting of Organizational Objectives
The first step in MBO is the definition of organizational objectives and purpose. Usually the objective setting starts at the top
level of organization and moves downward to the lowest managerial levels. The setting objective include defining the purpose of
organization, long range and short range organizational objectives, divisional or departmental objective an d individual manager‘s
objectives.
Identification of Key Result Areas
Organizational o0bjectves provide the basis for the identification of Key Result Areas (KRAs). KRAs are derived from their
expectations of various stakeholders and they indicate the priorities for organizational performance such as profitability, market
standing, innovation, productivity, social responsibility etc.
Setting subordinates Objectives
The achievement of organizational goals is only possible through individuals. Therefore, each individual manager must know in
advance, what he is expected to attain. Every manager in the managerial hierarchy is both superior and subordinate (except the
managers at top and bottom level). The process of objective setting begins with superior‘s proposed recommendations for his
subordinate‘s objectives. In turn, the su8bordinate state his own objectives as perceived by him. Thereafter the final objectives for
the subordinates are set by the mutual negotiation between superiors and subordinates.
Matching Resources with Objectives
Resource availability is an important aspect of objective setting because it is the proper application of resources, which ensures
objective achievement. Therefore, there should be a matching between objectives and resources.
Appraisal
Appraisal tries to measure whether subordinate is achieving his objective or not. Appraisal is undertaken as an on-going process
with a view to find out deficiency in the working and to remove it promptly in order to attain the objectives of organization.
Recycling
Though appraisal is the last aspect of MBO process, it is used as an input for recycling objectives and other actions. Recycling
process include setting of objectives at various levels, action planning based on those objectives and performance review. Each of
these three aspects gives base for others. This process goes on a continuous basis.
VARIATIONS IN PRACTICE
In practice, this MBO approach, of necessity, varies widely, especially about how formalized and structured it is in a given
organization and to what degree subordinates are allowed to set their own goals. In some organizations, MBO is a very formal
management system with precise review scheduling, set evaluation techniques, and specific formats in which objectives and
measures must be presented for review and discussion. In other organizations, it may be so informal as to be described simply as
“we get together and decide what we’ve done and what we’re going to do.”
However, in most organizations, MBO takes the form of formal objective setting and appraisal meetings held on a regular basis -
often quarterly, semi-annually, or annually.
Even more situational than the degree of formality and structure is the degree to which a subordinate is allowed to set his or her
own goals. In this regard, the kind of work that an organization does plays a large part in determining how much and on what
level a subordinate will be allowed to participate in formulating his or her own goals. In some organizations a subordinate is
almost told what he or she needs to do and is simply asked if he or she will commit to achieve that goal, while in others the
subordinate is given great latitude and room for innovation.
For example, there is a contrast between a production situation in which a supervisor informs a subordinate that so many widgets
must be made over the next six months and simply asks which part of that production burden the subordinate is willing to
shoulder and a university situation in which a department head informs a subordinate of the need to develop more community-
oriented programs and asks how the subordinate thinks he or she can contribute to this goal. In the latter circumstance, the
subordinate has much more room for innovation and personal contribution as well as a greater part in designing the specifics of
the program than does the production worker who is simply asked which part of a very specific activity he or she cares to commit
too.
POTENTIAL ADVANTAGES
No matter what form the MBO approach takes in a given organization, it is essentially a process that helps to (a) direct managers’
attention toward results, (b) force members of the organization to commit themselves to specific achievement, and (c) facilitate
their thinking in terms of their organization’s future needs and the setting of objectives to meet those needs. In addition, the MBO
approach can supply the manager with greater measures of tools he or she needs to make the best use of organization’s greatest
resource: people. The manager can:
 Gain greater commitment and desire to contribute from subordinates by (a) allowing them to feel that the objectives
they are working toward were not just handed to them but are really theirs because they played a part in formulating
them, (b) giving subordinates a better sense of where they fit in the organization by making clear how the subordinates’
objectives fit into the overall picture, and (c) injecting a vitality into organizational life that comes with the energy
produced as a worker strives to achieve a goal to which he or she has taken the psychological and (sometimes
economic) risk to commit.
 Gain better control and coordination toward goal accomplishment by (a) having a clearer picture of who is doing what
and how the parts all fit together, (b) having subordinates who are more likely to control and coordinate their own
activities because they know what will help and what will hinder their goal achievement, and (c) being able to see which
subordinates consistently produce and which do not.
 Gain an increased ability to help subordinates develop by (a) being better able to see their strengths and weakness in
operation on a specific objective and (b) using a management approach that teaches the subordinates (and the manager,
for that matter) to think in terms of results in the future—an approach that teaches them to try to anticipate change, to
define clear and specific objectives, and to delineate concrete measurements that will tell them when they have achieved
their goals. The benefits of MBO can be seen as follows:
 MBO helps in better managing the organizational resources and activities.
 Since organizational objectives are defined very clearly in MBO, they help in relating the organization with its
environment.
 MBO provides greatest opportunity for personnel satisfaction because of their participation in objective
setting and rational performance appraisal.
 MBO stimulates organizational change and provides a frame work and guidelines for organizational change.
POTENTIAL FOR MISUSE
MBO easily can be misused and often is. What is supposed to be a system that allows for dialogue and growth between boss and
subordinate with a view to achieving results often degenerates into a system in which the boss puts constant pressure on the
subordinate to produce results and forgets about using MBO for commitment, desire to contribute, and management development.
Sometimes even, well intentioned managers misuse MBO because they do not have the interpersonal skills or knowledge of
human needs to keep their appraisal sessions from becoming critical, chewing-out periods.
Finally, many managers have a tendency to see MBO as a total system that, once installed, can handle all management problems.
This has led to forcing issues on the MBO system that it is not equipped to handle and that frustrate whatever good effects it
might have on the issues with which it is designed to deal. Each organization is likely to encounter specific problems in MBO
practice but some of the common problems are as follows:
 MBO is a time consuming and costly process,

 Manager‘s failure to teach MBO philosophy,
 Problems in objective setting,
 more emphasis on short term objectives,
 Danger of inflexibility in the organization in a dynamic environment,
 MBO creates frustration among managers.
In spite of thee obstacles and problems in MBO, it continues to be a way of managing organization.
CONCLUSIONS
MBO provides a framework for planned changes. It enables managers to initiate and manage change. It helps to identify
shortcomings in organizational structure and processes. In this way, MBO improves the capacity of the organization to cope with
its changing environment. When an organization is managed by objectives, it becomes performance-oriented and socially useful.
Originally, MBO was developed for business organizations but now it is being used by social welfare organizations also.
However, MBO might not be very successful in welfare organizations because of the abstract nature of the values to be measured
in specific and quantified terms, general unwillingness on the part of personnel to subject their efforts to precise evaluations and
lack of measuring instruments, which could generate valid and reliable data. MBO has special significance in the areas of long-
range planning and performance appraisal.
Management by Objectives is a powerful tool for aligning employee’s actions with an organization's goals. Its overarching
premise is that of employee empowerment. By empowering employees to take responsibility for their performance and allowing
them to see how their achievements affect the organization as a whole, you increase people's motivation, dedication, and loyalty.
When you bring that full circle and link performance to evaluation and appraisal, you have a strong system that supports and
values employees and facilitates great performance.
REFERENCES
1. Drucker, Peter F. (1954). The Practice of Management.
2. Dionne, George S., (1965). Management by Objectives; a System of Managerial Leadership. New York: Pitman
Publication.
3. Deming, W. Edwards. (1994). Out of the Crisis. The MIT Press.
4. Alex, Sheerer J. (2010, March 3). Deming’s 14 Points and Quality Project Leadership.
5. Harper, Row, & Drucker, Peter. (1973). Management Tasks, Responsibilities, Practices.
6. Humble, J. (1968). Improving business results. New York: McGraw-Hill.
7. Humble, J. (1970). Management by objectives in action. New York: McGraw-Hill.
8. McGregor, D. (1966). Leadership and motivation. Cambridge, MA: M.I.T. Press.
9. Deurne, G. (1970). Management by objectives. New York: Pitman.
10. Redden, W. J. (1971). Managerial effectiveness. New York: McGraw-Hill.
11. (2008). Guide to Management Ideas and Gurus. The Economist's.
12. Spencer, Johnson, & Ken, Blanchard. (2000). One Minute Manager.
13. Sedge, Peter (et. al.). (1994). The Fifth Discipline.
14. Edward, Deming. (1986). Out of the Crisis.
15. Robbins, S. P. (2003). Organizational Behavior. Prentice Hall.
16. Chiron, L. B. (2002). Execution: the discipline of getting things done. New York: Crown Business.
17. Barbour, J. L. (2012). The Basics of Performance Measurement. Productivity Press.
18. Ajay, M. (2012). A New Approach to MBO. Updating a Time-Honored Technique.
19. Weihrich, H. (2011). MBO: Appraisal with Transactional Analysis.
20. Sneha, D. (2012). Strategic Management and Management by Objectives. Small Business.
*****
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GLOBAL MOBILITY PROGRAMS AS EFFECTIVE TOOL TO INTERNATIONAL HUMAN

RESOURCE MANAGEMENT: ISSUES AND CHALLENGES
Sweta Dixit15 Alka16
ABSTRACT
With companies trying to make a move towards expansion of global operations, it is very important to seek opportunities
outside one’s country and send their talent to train themselves in the work patterns of other economies. The traditional model
used international assignments for troubleshooting or fulfilling the skill gap in the overseas operations, but these days in
leading MNCs, Global mobility Programs aims at overall development of an individual and in nurturing the employee for
more important positions in future. Employees are sent to established or mature markets for business staffing or career
development reasons. This program is used by companies for deploying employees all over the world to support new business
start-ups, up skill a local workforce or sort out an operational issue.
However, a thorough global mobility program too comes with its own sets of issues and challenges. Four such major concerns
to deal with have been discussed in this article: The globalised business environment, Talent environment that addresses the
need for global leadership and talent shortages, compliance environment that takes care of rapid regulatory changes of
different countries, and Internal Expectations of the organizations in terms of ROI.
The article discusses some leading examples of business conglomerates who have taken a lead in developing such programs,
the benchmarks and trends in putting up one such program in place, the advantages and challenges that are faced and met by
the organizations who deal with these global programs dealing with expatriates.
KEYWORDS
Global Mobility, Compliance Environment, Talent Environment etc.
INTRODUCTION
Success today, for all companies, requires talented workforce with a global mindset. With companies trying to make a move
towards expansion of global operations, it is very important to seek opportunities outside one’s country and send their talent to
train themselves in the work patterns of other economies.
It is thus a major challenge these days for companies to have employees who have truly global outlook. Thus sending employees
on international assignments has gained importance over the year in many organizations.
According to “Talent mobility 2020: The next generation of international assignments” report of PwC:
 Number of people on international assignments increased by 25 per cent in the last decade; further 50 per cent growth
predicted by 2020.
 Global organizations placed employees in an average of 13 locations in 1998; this increased to 22 by 2009 and could
reach 33 in 2020.
 New ‘capital’ cities will emerge as business hubs according to size of local working age populations and new revenue
streams.
 Collaboration will be the watchword as companies and governments share costs and knowledge to remove barriers to
mobility and manage regulation.
 Economic and demographic imperatives could force leniency on immigration rules for specific workers, while
technology will reduce tax compliance burden.
 PwC research projects that the E7 countries will overtake the G7 in terms of GDP by 2020.
 Of the 30 most populated cities in 1950, 11 have slipped off the list to be replaced by new destinations.
According to Manpower Group’s Migration for Work Survey of 14,385 employees across nine countries, more than 1 in 4 people
report that they are more willing to relocate for work since the global recession.
15Assistant Professor, NIILM-Centre for Management Studies, Uttar Pradesh, India, sdixit@niilm.com
16Assistant Professor, Amity University, Uttar Pradesh, India, amaurya@amity.edu
The Manpower Group survey showed the preferred destination’s for workers to be the United States, Canada and Australia
followed by the United Kingdom, France and Germany. China, the United Kingdom, and the United States remain the top
international assignment destinations and have been so since Manpower’s 2000 report. Rising popular destinations with
companies include Australia, Brazil and Canada.
China, India, Russia and Brazil were cited as posing the greatest challenges for assignees and program managers. China, India and
the United States were cited as the locations with the highest rate of assignment failure.
This survey indicates that companies have realized intrinsic and extrinsic values of sending employees beyond their national
borders for a fixed period of time. Therefore nurturing truly global workforce is need of the hour. Keeping this in mind leading
companies worldwide have devised many strategies for training employees for taking up challenging global assignments and
Global Mobility Program is one of the move in this direction.
For many multinational companies, global mobility program have been around since the start of the business. For others new to
the world of corporate relocation, it may be a foreign territory. Before a company begins to send executives on short term or long
term international relocation assignments, it would be essential for them to put together a solid global mobility program.
GLOBAL MOBILITY PROGRAM
Companies have been international since colonial days, but post-WWII major multinationals began sending more employees
around the globe to establish best business practices and manage acquisitions smoothly. Over the years this old "colonial model"
(from headquarters to smaller market) is giving way to a more global approach that focuses not only on sending talent abroad but
also on sourcing talent from maturing markets.
The traditional model used international assignments for troubleshooting or fulfilling the skill gap in the overseas operations, but
these days in leading MNCs Global mobility Programs aims at overall development of an individual and in nurturing the
employee for more important positions in future.
Global mobility extends beyond the idea of giving talent a chance to develop themselves in emerging markets. Employees are sent
to established or mature markets for business staffing or career development reasons. This program is used by companies for
deploying employees all over the world to support new business start-ups, up skill a local workforce or sort out an operational
issue. Bentley, A., in his research article “Global Mobility: Managing costs to maintain a successful international assignments
program in line with corporate strategy”, outlines the relevant strategic reasons for corporate having global mobility programs in
place:
 Troubleshooting,
 Project delivery/technical need,
 Skills gap/transfer of skills,
 Personal/Career development,
 Talent management,
 Imposing the company culture (e.g. following a merger or acquisition),
 Personal request of the individual employee.
Surveys by agencies that began before the economic crisis beginning 2008 have consistently indicated an increased use of
expatriate employees. Varying international work experience enhances a person’s ability to deepen his or her knowledge and
acquire globally applicable skills that make internal knowledge transfer and teaching possible. (Bonache, Brewster, Suutari and
De Saá, 2010).
Reiche. S.B,(2011),in his research on “Knowledge transfer in multinationals: the role of inpatriates’ boundary spanning” has
examined the role of inpatriates as boundary spanners between their home unit and headquarters for transferring their knowledge
to the headquarter staff and based on a sample of 269 inpatriates in 10 German MNCs, the author found that inpatriates’ boundary
spanning is positively related to inpatriates’ individual efforts to transfer knowledge and inpatriates’ perceptions of HQ staff
efforts to acquire subsidiary-specific knowledge. Both perceived HQ absorptive capacity and mentoring by HQ staff moderate
these relationships.
In order to achieve desired result from the Global Mobility Programs organizations should also choose the right person for the
right job. Fish and Alan (1999) in their work “Selecting managers for cross-border assignments: building value into the process”
opine that selecting cross-border managers simply by relying on an assessment of technical competence, isolated and domestic
management success as well as perceived commitment to the organization has become inadequate.
In addition to these, multiple value orientations associated with cross business performance should form an integral part of the
selection process. Value orientations associated with cultural identity, cross-border business focus and personal and professional
development need to be taken into consideration when selecting managers for cross-border assignments.
Bonache and Zarraga,(2008) in their research paper entitled “Determinants of the success of international assignees as knowledge
transferors: a theoretical framework” have identified the factors influencing the success of international assignees as knowledge
transferors They argue that in addition to the specific characteristics of the knowledge involved, transfer success will be affected
by three sets of human-related factors: abilities and motivation of international staff; abilities and motivation of local employees;
and the relationship between local and international staff.
Many companies all over the world either have implemented the Global Mobility Program or are planning to offer such programs
for the overall development of their employees. On one hand there are companies like Deloitte, KPGM, PwC, AT Kearney,
Samsung, Philips etc., which have successfully offered global mobility programs in different forms to their employees, while on
the other hand there are companies like AIRNIC and Mercer which are offering consultancy services to various organizations who
are either offering or aspire to offer such programs.
GLOBAL MOBILITY - NEED OF THE HOUR
International assignments are managed as a high-touch, low-volume activity in most of the organizations. The main focus is on
addressing the employee’s short-term needs (a relocation that is pleasant and hassle-free) without much thought to long-term
employee development or the strategic needs of the business. This one-dimensional approach is not beneficial for the organization
in today’s competitive environment.
Four types of challenges are driving the new requirements for global mobility:
Business Environment
Globalization is driving the need for global mobility by increasing the number and variety of international assignments. In
particular, emerging markets such as Brazil, Russia, India, and China are fueling the global mobility trend as companies in mature
economies look abroad to achieve their aggressive growth objectives. Technology and workplace innovations are also a factor,
making it possible for companies to overcome traditional barriers of time and space and providing new alternatives to long-term
relocation.
Talent Environment
Global talent trends such as baby boomer retirements, aging workforces, and declining interest in science and technology
education are creating a chronic shortage of critical talent. To survive and thrive, companies must find ways to tap into the
world’s talent wherever it happens to reside and deploy it wherever it is needed. They also must use international assignments to
cultivate leaders with global experience to help run their increasingly broad, geographic operations. In a recent survey, HR
executives said their global mobility staff spends most of its time on transaction issues such as compensation, benefits, and cost
management.
Meanwhile, the need for talent management is virtually ignored. The people selected for overseas assignments are not consistently
the company is best performing and brightest. In addition, returning employees often lack a planned “landing pad” to ease their
re-entry and harness the new skills and experience they have gained. In fact, many of these employees leave the company shortly
after their assignment ends.
Internal Expectations
To become a standard tool for competitiveness and growth, global mobility programs must do a better job of meeting the needs of
the business; delivering fast service that can keep pace with the requirements of a rapidly changing market. Offering flexible
options to fit a variety of situations and applying repeatable and efficient methods that help deliver a positive result for every
assignment. Today, most programs revolve around the needs of the employee – not the needs of the business – with little regard
for cost (see sidebar entitled “A cold, hard example about global mobility”).
Every assignment is treated as a special case that requires significant manual effort and a long lead-time. Meanwhile, the business
rationale for an assignment is often not clearly defined, and there is generally no formal tracking mechanism to evaluate an
assignment’s ROI impact on short-term business performance or long-term leadership development.
Compliance Environment
Accounting scandals and other corporate missteps have put businesses under greater scrutiny than at any time since the 1930s.
New regulations are being introduced in rapid succession, and there is no relief in sight. Of course, the problem is exponentially
worse for companies that operate across national borders and must, therefore, comply with a bewildering – and often conflicting –
array of local, national, and international regulations.
Moreover, the risks related to global compliance continue to mount. On a strategic level, companies continue to aggressively push
for global growth. However, on a tactical level, many are not devoting enough attention and resources to the details of local and
international compliance. This dichotomy puts global companies and local regulators on a collision course.
Figure-1: Four Challenges Driving New Global Mobility Requirements
Sources: Smart Moves, New Approach to International Assignments and Global Mobility, PWC
BEST PRACTICES FOR CREATING AN EFFECTIVE GLOBAL MOBILITY PROGRAM
Typically, international policies are tiered by assignment type: long-term assignments, short-term assignments, permanent global
relocations, extended business trips, etc. Evolving business drivers necessitate the implementation of more flexible policies.
According to Worldwide ERC, the main reasons cited for implementing flexible policies include:
 Employees’ needs have increased and become more diverse; however, budgets have decreased.
 Standard packages often result in unused services/benefits.
 Flexibility allows employees’ individual (highest priority) needs to be met within a budget that management can
support.
The challenge for organizations is to structure their program to fit the company’s corporate culture and level of decentralization in
the management of the international mobility program. Some of the salient points of a good mobility program are:
 Create a Global Policy: When implementing any type of program, it is important to identify rules and regulations. The
policy should be reviewed in order to assure that it meets industry standards.
 Create a Candidate Selection Process: When relocating executives internationally, it is important to assure that each
candidate is prepared for the challenges of international relocation. The selection process can be done by conducting
surveys and interviews with potential candidates prior to sending them on the assignment.
 International Assignment Selection Systems: are centered on predicting the environment in which the incumbents
will need to work effectively rather than the technical or functional job they are being asked to do which in many cases
is already assessed or assumed to be at an acceptable level of competence. Therefore, unlike predictors of success in the
domestic context where knowledge, skills, and abilities may dominate the selection strategy, many psychological and
biodata factors including personality characteristics, language fluency, and international experience take on increasing
importance in predicting international assignee success. (Caligiuri, Tarique & Jacobs, 2009).
 Calculate Company Costs: There are a number of costs associated with global mobility. It is essential to create a
budget outlining all of the costs of the relocation as well as analyzing any possible options for cost savings. The key is
achieving cost efficiencies whilst implementing a seamless program.
 Identify Company Responsibilities: It is important for each company to know what they are responsible for in terms
of the relocation process. For most multi-national companies, a large number of relocation-associated tasks are
outsourced to specialists. Some employers may even provide mortgage loans to employees in order to alleviate housing
concerns. Responsibilities should be outlined and understood by both the employer and the employee.
 Hire a Respected Provider: International relocation companies such as Cosmopolitan Services are hired to offer advice
and resources to assure that the international relocation process goes smoothly for both the employer and the employees.
It is good practice to outsource these responsibilities so that a trusted global mobility manager cannot only have
direction & support, but this also allows for the specifics of the relocation of the employee to be managed effectively.
Once there is a solid global mobility program in place, the company will be able to make smooth transitions in the world of
international relocation. This also helps avoid the issue of having “stealth expatriates” within the company.
When dealing with executives on long & short term assignments alike, organizations should be sure to have repatriation and
reintegration plans in place. This will be important when it is time to send the executive back to their home country once the
assignment ends.
SUCCESSFUL EXAMPLES OF LEADING COMPANIES IMPLEMENTING / PROVIDING CONSULTATION ON

GLOBAL MOBILITY PROGRAMS
Global Mobility Programs at Deloitte
Deloitte is the biggest name, which comes to our minds when we think about audit, consulting, financial advisory, risk
management, and tax services to selected clients. These firms are members of Deloitte Touche Tohmatsu Limited (DTTL), a UK
private company limited by guarantee. Each member firm provides services in a particular geographic area and is subject to the
laws and professional regulations of the particular country or countries in which it operates. DTTL does not itself provide services
to clients. DTTL and each DTTL member firm are separate and distinct legal entities, which cannot obligate each other. DTTL
and each DTTL member firm are liable only for their own acts or omissions and not those of each other. Each DTTL member
firm is structured differently in accordance with national laws, regulations, customary practice, and other factors, and may secure
the provision of professional services in its territory through subsidiaries, affiliates, and / or other entities.
Deloitte member firms recognize the value of having individuals with global skill sets and work opportunities for their employees
to expand their skills and experience by working abroad. Interested Deloitte professionals are encouraged to apply for positions
through the various international assignment programs that the company offers.
Assignments vary from short-term client service projects to longer-term strategic roles and are available across all levels. They
will provide the employees with an opportunity to enhance their global knowledge and skill sets, build cross-cultural capabilities,
and develop leadership competencies.
Deloitte member firms also recognize that there is a growing interest in employees to develop global skills by permanently
transferring to member firms in other countries. As a result, Deloitte member firms strive to support the development and
retention of professionals by offering them the opportunity to pursue an international experience, and have created
an International Transfer Opportunities site on the Deloitte intranet to help facilitate the pursuit of these transfers.
By linking careers to the needs of Deloitte and its member firms, these programs provide clear career paths that benefit both the
individual and the member firm, and ultimately its clients.
To advance responsible globalization and good corporate governance, DTTL member firms have entered into strategic
commitments with several organizations around the world. These organizations promote responsible global citizenship, good
governance and sustainable development by encouraging business to recognize and commit to sustainable economic growth,
environmental protection and social equity no matter where they operate. They provide a valuable forum for discussion of
corporate social responsibility and best practices for acting on this commitment. In the case of the World Economic Forum,
DTTL's commitment includes a range of activities with the forum including a commitment to the forum's Global Corporate
Citizenship initiative.
Global Mobility Program in Price Waterhouse Coopers
PwC firms help organizations and individuals create the value they are looking for. PwC is a network of firms in 158 countries
with close to 169,000 people who are committed to delivering quality in assurance, tax and advisory services. In India, PwC
offers a comprehensive portfolio of Advisory and Tax & Regulatory services; each, in turn, presents a basket of finely defined
deliverables. Network firms of PwC in India also provide services in Assurance as per the relevant rules and regulations.
Rapid globalization of business and rising activity in emerging markets have increased the need for companies to move people
and source talent around the world. As a result, deploying employees across borders is critical to the success of today's
multinational companies.
However, managing a global mobility program is incredibly complex. Companies face numerous challenges such as navigating
the intricate and dynamic nature of national and regional tax regulations; controlling rights against a vast, global backdrop;
coordinating assignees' taxes; and finding the right technology to help manage it all.
Whether an organization has a small kor large global mobility program, PwC's International Assignment Services (IAS) practice
can help by applying the experience, methodologies, and tools they have used to manage diverse mobility programs around the
world.
PwC offers total tax program assistance to help clients achieve home- and host-country tax compliance. These include core
services such as tax planning, determining effective ways to deliver compensation, preparing home- and host-country filings,
providing tax equalization calculations, and assisting with tax authority inquiries. PwC does not only provide clients with these
essential tax services, they can also help them to get the most out of their mobility programs.
In addition to PwC’s core tax offerings, they provide a wide range of global mobility services, including but not limited to:
 Strategy and global mobility policy advice,

 Administration and global coordination,
 Compensation, rewards, and benefits planning,
 Payroll and employment tax advice,
 Immigration services (outside the US).
“Global Opportunities” - KPMG’s Global mobility Program
KPMG international operates as a network of member firms offering audit, tax and advisory services. They work closely with
their clients, helping them to mitigate risks and grasp opportunities.
Member firms' clients include business corporations, governments, public sector agencies, and not-for-profit organizations. They
look to KPMG for a consistent standard of service based on high order professional capabilities, industry insight and local
knowledge.
KPMG member firms can be found in over 153 countries. Collectively they employ more than 145,000 people across a range of
disciplines.
Sustaining and enhancing the quality of this professional workforce is KPMG’s primary objective. Wherever they operate, they
want their firms to be no less than the professional employers of choice.
Salient features of “Global Opportunities”-KPMG’s Global mobility program
 Global Opportunities (GO), KPMG's "Global Mobility Program," is all about creating career development opportunities
for KPMG people throughout their careers, and having the right resources in the right place to serve the evolving needs
of our clients throughout the world.
 GO is open to all KPMG professionals anywhere in the world.
 In most cases, applicants must have worked at their KPMG member firm for at least two years.
At KPMG, they try to create sustainable, long-term economic growth, not just for their member firms and their clients
but for the broader society, too. KPMG seeks to be a good corporate citizen, making a real difference to the
communities in which it operates.
Global Mobility Program in AT Kearney
AT Kearney is the trusted advisor to most of the world is leading corporations. The Global Mobility Program of the organization
was developed with the aim to build and maintain a global firm while fostering individual development, shared values,
innovation, and diversity.
A.T. Kearney’s Global Mobility Program provides three options that balance the needs of individuals and the firm:
Exchanges – provide employees with a temporary experience in another market, as a personal or developmental opportunity. For
example, a tailored program can be developed for a high potential employee to gain a concentrated and carefully designed
experience in another market.
Transfers – combine business needs and personal preferences for a period of time or on a permanent basis to fill an open
position. Individuals transfer to the “host” country under local terms and conditions of employment in that country.
Assignments – become available because of a temporary, specific, and critical need within a market or functional area. The
individual maintains their home country purchasing power and benefit levels to facilitate successful repatriation upon completion
of the assignment
Global Mobility Services by AIRINC
Associates for International Research, Inc. (AIRINC), is human resources consulting firm dedicated to facilitating global mobility.
Since 1954, AIRINC has provided organizations with superior cost-of-living services for their cross-border transfers.
They offer an array of services, including data delivery, educational seminars, policy roundtables, policy consultation, and
mobility program design.
AIRINC's data services include calculations of Cost-of-Living Allowances, Expatriate Rent and Utilities Guidelines, Statistical
Income Tax, Hardship Evaluations, Automobile Capital and Operating Costs Per Diems and One-Way Transfer Calculations.
Most of their data services are available as interactive internet programs accessed via their web-based Airline platform. All
standard data configurations and data delivery options may be customized according to client specifications.
In addition to its data products and services, AIRINC offers a wide range of educational and consulting services as if they offer a
series of Expatriate Compensation Seminars, which explore both the principles of expatriate compensation and best practices in
policy design and strategy. They also offer topical seminars and roundtables that focus on current issues in mobility policy and
practice.
AIRINC consults with clients about all aspects of compensation program design, including policy development, mobility program
assessment, benchmark surveys, and transition support.
AIRINC have headquartered in Cambridge, Massachusetts, USA, and has full-service offices in Brussels, Amsterdam, and Hong
Kong.
Global Mobility Services offered by Mercer
Mercer is the global leader for trusted HR and related financial advice, products and services. They help their clients enhance their
financial and retirement security, health, and productivity and employment relationships of the global workforce. Mercer has more
than 19,000 employees serving clients in over 180 cities and 40 countries and territories worldwide.
GLOBAL MOBILITY INFORMATION SERVICES
Mercer’s extensive reports, surveys, calculators and information databases give us a unique and comprehensive capability to
provide on-going service to maintain effective global mobility policies and practices. Their continuously updated information
services include:
Product Solutions
 Cost of Living Reports - reliable information to help the client determine the cost of living allowance for transfers to
more than 260 cities.
 Spendable income and Home housing norms - reality-based expenditure patterns to support the client in developing
appropriate cost of living and housing allowances.
 Quality of Living reports - information to help the client establish the hardship allowance for transfers to more than 280
cities.
 Personal Tax Reports - a concise and easily understandable guide to income tax, other personal taxes and social security
contributions in nearly 70 countries worldwide.
 Short-Term Assignment Allowances – allows the client company to grant daily allowance in a fair and consistent
manner.
 Employee Mobility Guides - a reference source for developing expatriate policies and for expatriates wanting to know
more about their new host country.
 Worldwide Benefit & Employment Guidelines (WBEG) - provides information on employment conditions and benefits
regulations, statutory employment conditions and an overview of HR environment of the country. The reports, available
individually, cover 60 countries worldwide, in every region of the globe.
Benchmark and Trends
 Expatriates and Third-Country National Benefits Survey - highlights current trends and provides the client with valuable
information to assist them with operating competitive benefit programs for their international assignees.
 International Assignments Survey - a survey to assist the client in the development, modification, and customization of
their expatriate’s packages based on best practices.
 Managing Quality of Living for Expatriates - provides all the elements necessary to enable HR professionals and
managers to understand the importance of assessing worldwide levels of living conditions in key areas, namely:
personal safety and security, health, cleanliness and pollution, and transportation infrastructure.
 Intra Regional Mobility Trends in Asia - provides guidance for organizations interested in or currently managing
international assignments within Asia and will assist them in developing flexible and competitive packages.
 Visa and Entry Requirements America - provides an easy-to-read reference guide on all matters regarding visa and
administrative procedures for travel to the Americas.
 Visa and Entry Requirements Asia - provides a clear and structured summary of administrative procedures for entry into
11 key countries across this diverse region.
Global Mobility Software Tools
 The Global HR Monitor®, Mercer's web based application, acts as a single source, supporting the client in all aspects of
managing their expatriate compensation on a worldwide and/or regional basis. The reports and built-in calculators allow
the clients to customize the data to your own specific needs and to obtain the best return on investment from your
international assignments.
 Mercer Passport- Mercer Passport contains valuable reference information that will help expatriates learn what it is
really like to live in another country. It provides the whole family with a clear understanding of how to appreciate and
adapt to life in a new location, as well as essential practical guidance about moving abroad and acclimating to a new
home.
BENEFITS OF GLOBAL MOBILITY PROGRAM
The Global Mobility Program is a very effective tool used by leading global companies in managing their diverse international
operations. The Program helps them to build and maintain a global firm while fostering individual development, shared values,
innovation, diversity and many other similar strategic benefits. Some of the advantages of Global Mobility Program are
highlighted below:
 Reduces costs: Delivers the appropriate level of benefits and support for each assignment. Uses methods and tools that
are efficient and repeatable. Improves visibility to costs,
 Develops talent: Makes talent development a top priority. Helps organizations to develop efficient teams with global
frame of mind,
 Fits the needs of the business: Offers flexible options to address a wide range of needs,
 Improves ROI: Places returning employees into positions that capitalizes on their new skills and experience, improving
retention and business value,
 Reduces the risk of non-compliance: Facilitates a rigorous and consistent approach to complying with rules and
regulations at every level,
 Supports global growth: Gets the right resources in place, quickly and efficiently. Handles a high volume of global
mobility assignments,
 Provides opportunity to work in a cross cultural environment,
 In certain cases global mobility program provides unparalleled opportunities for partners and children,
 Cost effective compared to other strategies for providing international assignments,
 High-potential employees benefit from such programs as it helps develop competencies,
 Helps in filling the gap in local skills, these strategies not only help in overall development of the individual, but also
facilitate the nurturing process for more important positions,
 Effective retention strategy in most of the companies,
 Employees perceive an overseas posting as a step up the career ladder.
CONSTRAINTS & CHALLENGES
Even though Global Mobility Program has manifold advantages, but organizations face many challenges while implementing
such programs:
 With employees deployed throughout the world, there is a need to track their progress and establish regular
communication to ensure a talent remains aligned with the company and does not feel excluded from a corporate vision.
 Global Mobility Program, which is aimed primarily at younger employees, but these Generation Y employees prefer to
travel to developed economies and the more affluent APAC countries such as Australia compared with less developed
markets. Thus, it is challenging to ask any young employee to take up international assignments in less affluent markets.
 Poses new challenges professionally and personally, for example, at times the employee finds it difficult to adjust in the
new cultural environment or candidate’s spouse may be reluctant to move because they have a steady career in the home
country or there is a reluctance to move children because of the difference in education systems. Alternatively,
employees may not want to move their families to the host country because there is insufficient domestic support.
 Problems with immigration, currency differences, spouse or dual-career issues and the ability to get assignees to
understand tax equalization approach.
 Peer comparisons with expatriates and local employees doing the same role, but with vastly different levels of
compensation.
 Relocation of employees on their return is a major problem as the employees assume more important positions on their
return.
 At times, it becomes difficult to adhere to clauses in the contract. For example, the employee will not be able to back
out of the assignment until the contract ends.
 Employees also have concerns related to housing and living conditions on offer in the host country. Their expectations
of accommodation may differ in size, location and facilities. Their transportation needs may also be different.
 Employees at times are reluctant to accept postings in rural areas.
 Employees expect attractive compensation packages while accepting foreign postings.
 Administrative complexity .For instance, at times it becomes difficult to devise appropriate compensation and benefits
packages.
 The selected employee returning from the assignment will add further value to the organization in the long run.
 However, make the same offer to a high-potential talent; they will gladly take up the job. They may even put up their
hands first for a transfer to developing economies because they can see the potential in working in those markets
compared with the successful ones.
ENSURING A SUCCESSFUL ASSIGNMENT
A research cited by the IPM Limited. Indicates that the following attrition statistics are typical among international assignees:
 21% leave the company during the assignment,

 23% leave within 1 year of repatriation,
 20% leave between 1-2 years after repatriation,
 Attrition rates are double the rates of other employee groups.
Organizations should ensure that the assignment does not fail – the needs of the expatriates’/international assignees’ family should
not be ignored.
The company should also ensure that the repatriation process is successful. An assignee that leaves the company on return from
assignment is a lost investment.
Given the cost of international assignments, ranging from three to five times base salary(depending on host location and family
size),companies increasingly recognize that they must take all steps necessary to promote assignee success and to avert failure
(Bennett, Aston and Colquhoun, 2000).
The authors above in their research work “Cross-cultural training: a critical step in ensuring the success of international
assignments have discussed about the rationale and the components cross-cultural training programs for increasing the success
and effectiveness of these assignees.
According to research (Brislin & Yoshida, 1994; Kohls & Brussow, 1995) and practitioner experience, cross-cultural training
should, at a minimum, include the following topics:
 General and country-specific cultural awareness,

 Area studies, history, geography, politics, economics,
 Frameworks for understanding and valuing cultural differences,

 Planning for a successful international assignment,
 Intercultural business skills for working effectively in the local environment,
 Understanding cultural variations for those with regional responsibilities,
 Business and social customs in the host country,
 International transition and stress management,
 Practical approaches to culture-shock management and lifestyle adjustment,
 Information on daily living issues,
 Special issues: partners and families abroad,
 Repatriation as a pre-departure issue.
A well-structured and integrative program guides participants in understanding how culture shapes their own beliefs, values,
perceptions, expectations, and behaviors.
Global mergers and acquisitions will further increase the need for programs geared to the development of effective multicultural
teams as well as to those aimed at facilitating smoother corporate cultural merges (Bennett, Aston and Colquhoun, 2000).
However, the focus on retention rates has led to seeing departures as failures from a corporate perspective while an individual
career perspective tends to see such career moves as generally being positive for an individual’s career. (Bonache, Brewster,
Suutari and De Saá, 2010).
It is critical to manage all stages of the assignment process effectively to minimize the loss of these people. Recruitment and
training costs are significantly more than retention, and the organization would already have invested heavily in these employees,
so to lose they would more than likely be a false economy.
CONCLUSIONS
There may be many variations of the Global Mobility Programs offered by different organizations but the objective is always to
create a workforce with global orientation. The program provides an opportunity to the employees to work on different assortment
of engagements in a truly cross-cultural environment. The program has many advantages, but we cannot ignore its limitations.
The organizations while working on strategies to create global workforce should also keep in mind the constraints mentioned
above to ensure that they are able to address most of the problems faced by the employees who are part of the Global Mobility
Programs.
REFERENCES
1. Global Mobility Program. AT Keaney. Retrieved on 25 February 2012 from

http://www.atkearney.com/index.php/Careers/global-mobility-program.html
2. Smarter moves executing and integrating global mobility and talent programs. Deloitte. Retrieved on 3 March 2012
from http://www.deloitte.com/assets/Dcom-
UnitedStates/Local%20Assets/Documents/IMOs/Talent/us_talent_SmarterMoves_062410.pdf
3. Global Mobility. KPMG. Retrieved on 15 March 2012 from http://www.kpmgcampus.com/whykpmg/globalops.shtml
4. Establishing an Effective Mobility Program. AIRNIC. Retrieved on 20 February 2012 from http://www.air-
inc.com/index.php?id=233
5. About AIRNIC. AIRNIC. Retrieved on 20 February 2012 from http://www.air-inc.com/index.php?id=233
6. Global Mobility Overview. Mercer. Retrieved on 20 January 2012 from http://www.imercer.com/content/global-

mobility-overview.aspx
7. Global Mobility. PwC. Retrieved on 25 February 2012 from http://www.pwc.com/us/en/hr-management/issues/global-

mobility.html
8. Global mobility (Cover Story 2010, September 9). Human Resources. Retrieved on 20 January 2012 from
http://www.humanresourcesonline.net/news/21910
9. Mobility Consulting. Ernst & Young. Retrieved from http://www.ey.com/UK/en/Services/Tax/Global-Mobility/HC---

Global-Mobility---Consulting.
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November 2010 from http://ebn.benefitnews.com/news/global-mobility-programs-international-safety-nets-2684573-
1.html.
11. Global Workforce–Trend Forecast. News and Views from News one, Florence Foster. Retrieved from
http://www.moveoneinc.com/blog/industrynews/englobal-workforce-trend-forecast/
12. Global mobility statistics and trends. Mary Beth Nitz, ACS Market Update. Retrieved from http://www.acs-
alumni.co.uk/page.cfm?p=649
13. Smart Moves. A new approach to international assignments and global mobility. PwC. Retrieved from
https://www.deloitte.com/assets/Dcom-
UnitedStates/Local%20Assets/Documents/IMOs/Talent/us_talent_smartmoves_062410.pdf
14. Retrieved from www.ipmltd.eu
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adjustment. Academy of Management Journal, 48(2), 257–281.
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Studies of Management and Organization, 34(3), 68–95.
17. Bonache, J., & Oberty, Celia-Zarraga. (2008). Determinants of the success of international assignees as knowledge
transferors: a theoretical framework. The International Journal of Human Resource Management, 19(1), 1-18.
18. Reiche, Sebastian B. (2011). Knowledge transfer in multinationals: the role of inpatriates’ boundary spanning. Human
Resource Management, 50(3), 365-389.
19. Fish, Alan. (1999). selecting managers for cross-border assignments: building value into the process. International
Journal of Management Reviews, 1(4), 461.
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Introducing the special issue. Thunderbird International Business Review, 52(4).
21. Bennett, R., Aston, A., & Colquhoun, T. (2000). Cross-cultural training: a critical step in ensuring the success of
international assignments. Human Resource Management, 39(2&3), 239–250.
22. Brislin, R., & Yoshida, T. (1994). Intercultural communication training: An introduction. Thousand Oaks, CA: Sage.
23. Kohls, L. R. (1994). Intercultural training for overseas posting. In W.R. Tracey (ed.), Human resources management
and development handbook. AMACOM: A division of the American Management Association.
24. Kohls, L. R., & Brussow, H. (1995). Training knowhow for cross-cultural and diversity trainers. Duncanville, TX:
Adult Learning Systems.
25. Paige, R. M. (1996). Intercultural trainer competencies. In D. Landis & S. Bhagat (Eds.), Handbook of intercultural
training (2nd ed.). Thousand Oaks, CA: Sage.
26. Trompenaars, F., & Hampden-Turner, C. (1997). Riding the waves of culture (2nd ed.). London, UK: Nicholas Brealey
Publishing.
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Handbook of intercultural training (2nd ed.). Thousand Oaks, CA: Sage.
28. Hofstede, G. (1991). Cultures and organizations. Berkshire: McGraw-Hill.
29. Hofstede, G. (1984). Culture’s consequences. London, UK: Sage Publications.
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*****
DYNAMIC IMPACT OF JOB SATISFACTION AND PSYCHOLOGICAL CLIMATE ON

EMPLOYEES BEHAVIOUR: A STUDY OF INDIAN INSURANCE SECTOR
Ambika Shukla17
ABSTRACT
The present study pertaining to human resource management in India reveals a variety of factors that affect employee’s
behaviour / employee’s performance in the organization. The study attempts to examine the factor like job satisfaction,
turnover intentions, job environment, Job involvement etc. Human resource is considered very crucial in the organization’s
well being.
Presently organizations have started realizing that human resources are the most important asset and its development is
considered to be the soul of human resource management function, which reflects on the organizational’ effectiveness. The
data was collected from 200 managers / executives from insurance sector. This paper aims to study the attitudinal variables
like job satisfaction and Job involvement, with organizational effectiveness and turnover intentions in insurance sector.
The results established that job satisfaction, turnover intentions, job environment and Job involvement all are simultaneously
and partially have a significant influence on employee performance and organizational’ effectiveness.
KEYWORDS
Job Satisfaction, Insurance, Psychological, Climate, Job involvement, Turnover Intentions etc.
INTRODUCTION
Work in today’s organizations is characterized by increasing complexity, rapid change and increasingly competitive business
environments. In such a turbulent environment, the organizations are facing a gradual shift in the traditional employment
relationship. Organizational loyalty is reported to be in decline as turnover rates, rate increase, average job tenure falls and the
employees go ‘job shopping’ according to Neumark. Before the introduction of the new economic policy in 1991, the Indian
business environment was distinguished by the dominance of large firms in the manufacturing sectors, which are usually marked
by mechanistic processes and rigid practices (According to Biswas & Verma, 2007).
Till the privatization of the Indian economy in the early 1990s, Indian organizations were extremely bureaucratic and were
characterized by one way flow of decision making from the top to the bottom, which is not uncommon in social cultures
dominated by collectivism and high power distance norms (According to Hofstede, 2001).
However with the liberalization with the Indian business environment, managerial practices, especially those related to the
cognitive and effective facts of individual employees at the work place, underwent measures alterations. Furthermore HR
practices in Indian Firms have experienced a sea change, as contemporary HR Policies and Practices are designed in a manner that
promotes individual involvement on the job and encourages extra role behaviour in addition to the enroll behaviour of the
employees.
According to Biswas and Verma 2007, “HR practices in India are increasingly geared towards improving the way individual
employees perceive their day to day working environment, or the way they perceive the physiological climate in the workplace”.
In such a context, it becomes necessary to investigate the variables that are related to an Individuals perception of his or her
immediate work place, atmosphere based on his or her everyday experiences (According to Schneider and Scrutton, 1993).
In this regard, it is worth nothing that the relevant literature recommends the examination of psychological climate as a primary
antecedent of a variety of individual level outcomes such as Job Satisfaction, Job Involvement and Turnover Intentions. This
paper seeks to empirically examine these theoretical suggestions in the context of Indian Insurance Sector.
Figure-1: Impact of different Factors on Employee Behaviour and its Outcomes
17Assistant Professor, Rattan Professional Education College, Punjab, India, shukla_ambika@yahoo.com
According to Locke 1976, Job satisfaction has been defined as a pleasurable of positive emotional state resulting from the
appraisal of once job or job experience. According to Wanous and Lawer, 1972, identified several different operational definitions
of Job satisfaction examining different facts of job satisfaction and their combine effect in providing a journal understanding of
the Job satisfaction construct. Job satisfaction has been found to be a multi dimension construct manifesting the emotional
evaluations of individual regarding their expectations and how well they have been met.
According to Shneke, 1983, conceptualized three dimensions of Job satisfaction representing intrinsic, extrinsic and social aspect
of job satisfaction. Intact, Schnake, “Dimensions of job satisfaction cover cognitive and effective and responses made by
individual in connection to their work environment.
According to Bawsinger and Mobley, 1983, observed that the act of quitting and organization occurs at a specific point of time.
While reviewing the social psychological perspective of employees intention to stay or quit an organization, a substantial body of
literature indicated that the intention to quit an organization may be a significant response to stress factor rising out of
incongruence between an individual psychological about his or her job environment on the way hand and his or her needs and
aspirations on the other hand, mediated by an individual’s attitudinal facets such as level of involvement and satisfaction with his
or her job responsibilities.
According to Spencer and Steers 1981, found a strong negative relationship between job satisfaction and turnover only for
employees who were relatively low performers. They observed that high performing employees who became dissatisfied were
encouraged to stay by receiving whatever inducements could be provided to change their feelings. Whereas, low performers
receive no such encouragement, therefore Job satisfaction was more likely to be related to quitting for them then for high
performers.
According to Arogyaswamy & Byles, 1987; Robbins, 2001, As far as relationship between organizational culture and
organizational effectiveness was concerned, it was argued that organizations possessing a strong culture that was concurrent with
their top management leadership styles, organizational structure and internal management practices attained.
HYPOTHESES OF STUDY
Based on the above discussion above, four hypotheses were postulated:
H1: Psychological climate will have a significantly positive influence on job satisfaction.
H2: The psychological climate will have significant impact on job involvement.
H3: Job satisfaction will have a significantly negative impact on turnover intentions.
H4: Psychological climate and job satisfaction have a direct impact on employee behaviour.
OBJECTIVES OF STUDY
The broad objectives of the present studies are:
 To study the impact of Job satisfaction on employee behaviour.

 To study the relationship of Job satisfaction, psychological climate with job involvement and turnover intention.
 To study the impact of psychological climate on employee behaviour.
RESEARCH METHODOLGY
Data Collection
The present study, which is exploratory in nature, was conducted on a sample of 200 employees of Insurance sector including
both Public and Private sector of Indian insurance sector. A simple random sampling technique was adopted for selection of
samples. All employees are educated at least up to the graduate level and having at least one year experience in the same
organization were only included in the sample.
The employees were in the age range of 25-45 years. The respondents were 200 employees from different organization of
Insurance sector. For the purpose of collection of data, the respondents were contacted individually. A covering letter describing
the reasons for the study was attached with each filled questionnaire.
The questionnaires were completed by the employees of Insurance sector and were returned to researcher. Therefore, for
collection of data we introduced personal interviews and filled questionnaires.
DATA ANALYSIS
For analyzing the data researcher use five point rating scale consist of total 21 items ,In which researcher analyze psychological
climate, job satisfaction, job involvement, turnover intention and organizational effectiveness etc. For analyzing the data
researcher use 5 point rating scale and Regression analysis {Results has been shown in Table1 and Table 2 of Annexure}
Table-1: Result of Regression Analysis
S. No. Predictors Regression Coefficient Mean

1 Age .03 45.57
2 Qualification .55 1.84
3 Designation -.19 1.81
4 No. of Dependents .21 2.75
5 Experience -.09 20.59
6 Job Satisfaction -.18 69.33
Table-2: Standardized Regression Estimates between Key Constructs
S.No Factors Measurement Standardized β Critical Ratio

1 Psychological Climate Job Satisfaction 0.77 9.15
2 Psychological Climate Job Involvement 0.55 7.75
3 Job Satisfaction Turnover Intention -0.32 -3.85
4 Job Involvement Turnover Intention -0.21 -2.72
5 Turnover Intention Employee Behaviour -0.49 -5.19
DISCUSSIONS AND CONCLUSIONS
The result justify the acceptance of the first hypothesis that is, Psychological climate will have a significantly positive influence
on job satisfaction. Theoretically, an individual behaviour is affected by events in the external environment and in this context;
individual outcomes are going too predicted by psychological perceptions rather than objective realities. These individual
outcomes also include job related outcomes such as work performance.
Interestingly, psychological perceptions once immediate work environment or in other words psychotically were once viewed as
synonym with the job satisfaction construct. However, low intercourse relation between them has placed psychological climate
and job satisfaction as distinct concept, which lead to the formulation of the first hypothesis of the present study.
The result and analysis of the data collected for the present study also lead to the acceptance of the second hypothesis, which
stated that the psychological climate would have significant impact on job involvement. In this study, psychological climate was
conceptualized at both the organizational level and the individual level. At both level the commonality lies in the managerial
policies, practices and processes are based on the same individual psychological perceptions. In this connection, Job involvement
is conceptualized as the extent an individual’s psychological with his/her jobs .Hence the acceptance of Second hypothesis extent
conceptually justified. The regression analysis result support the third hypothesis that Job satisfaction will have a significantly
negative impact on turnover intentions.
The implication of this result is that the complexity of the work environment, if perceived in a favorable light would increase an
individual job satisfaction. Thus the grater the job satisfaction of an employee extrinsically intrinsically and socially, the higher
the level of organizational identification and commitment. Evidentially, such an attitude would encourage the individual to
continue with the organization and restrain his/her turnover intention. The results of the study also support the fourth hypothesis
of the study that is Psychological climate and job satisfaction has a direct impact on employee behaviour.
Theoretically, this implies that when the employee satisfies his job involvement will high and he will restrain in the organization
as well as when the psychological environment is in favour of the employee his satisfaction level will high.
To conclude the present study found a significant relationship between psychological climate and job satisfaction on employee
behaviour, this shows that job satisfaction or dissatisfaction place a significant role in influencing turnover intentions of
employees. People satisfied from their job, do their work with full interest and loyalty and have low intent to quit the organization
and vice a versa.
LIMITATIONS OF STUDY
There are certain limitations to our study. First of all the study was focus on insurance sector in India. That is covering a huge area
and both the private and public sector organization of Indian insurance sector. In addition, some time employees are reluctant to
give right information; and since the data were based on self reports, their analysis was limited due to inflation of the relationships
between variables. There are a lot of other factors also which influence employee behaviour, by using other factors we can find
out other apprehensions.
REFERENCES
1. Alwin, D. F., & Hauser, R. M. (1975). The decomposition of effects in path analysis [Review of the book American
Sociological]. 40, 37-47.
2. Biswas, S., & Verma, A. (2007). Psychological climate and its relationship to job involvement, effort, and performance.
Journal of Applied Psychology, 81, 358-368.
3. Cable, D. m., & Graham, M. E. (2003). The determinants of Job Seekers’ reputation perceptions. Journal of
Organizational Behavior, 21, 929-947.
4. Freeman, R. (1978). Job satisfaction as an economic variable. American Economic Review, 68, 135-141.
5. Lodahi, T. M., & Kejner, M. (1965). The definition and measurement of job involvement. Journal of applied
psychology, 49, 24-33.
6. Pattnaik, S., & Biswas, S. (2005, February 24-27). The mediating role of organizational citizenship behavior between
organizational identification and its consequences (Paper presented at the international Research Conference of the
Academy of Human Resource Development). Estes Park, Co.
7. Staw, B. M. (1980). The consequences of turnover. Journal of Occupational Behavior, 1, 253-273.
8. Strutton, D., Pelton, L. E., & Lumpkin, J. R. (1993). The relationship between psychological climate and sales person-
sales manager trust in sales organization. Journal of Personal Selling and sales Management, 13(4), 1-14.
9. Verma, A., Budhwar, P., Biswas, S., & Toh, S. M. (2005, May). An empirical investigation of host country national
categorization of expatriates in the United Kingdom (Paper presented at the European Academy of Management).
Germany: Munich.
*****
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An author must cite all relevant publications. Information obtained privately, as in conversation, correspondence, or
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Additionally, the author understands that co-authors are bound by these same principles.
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(Editor-In-Chief)
JOB SATISFACTION: A COMPARATIVE STUDY OF PUBLIC & PRIVATE SECTOR BANKS

Kavita Jain18 Preeti Jain19
ABSTRACT
In this competitive era only those organization can survive, the employees of which are satisfied. Job satisfaction is paramount
for both type of banks whether public or private sector. In the present study, an effort has been made to undertake a
comparative study between public and private sector banks regarding job satisfaction with special reference to three important
determinants of job satisfaction, namely management employee relationship, nature of job and working conditions.
Statistical results showed that there is no significant difference between the mean score of public and private sector banks
regarding employees-management relationship, in relation to the nature of job and in relation to the working conditions of
bank. Astonishingly researcher found that though there are several measures to improve the job satisfaction but the most
important measures are good remuneration, promotional opportunities, and Job security.
KEYWORDS
Job Satisfaction, Public Banks, Private Banks, Work Conditions, Job Security, Remuneration, Promotional
Opportunities etc.
INTRODUCTION
Job satisfaction is a most frequently studied variable in organizational behavior research. Job satisfaction is an internal feeling of a
person, which he/she feels about his / her job. Generally we see that the more satisfied employees with their jobs are high
involved in their job and even more productive than unsatisfied employees. It is needless to say that a satisfied employee is also
more productive, inspired and positive towards their work.
Today’s work environment is so changed due to many factors as globalization, growing economies and improved technology
which creates new opportunities and challenges for the employees every time. In this competitive market, every organization is
dependent on its workforce. Here, satisfaction of an employee towards his job is so important because if an employee is not
satisfied then he cannot do his work with zeal and dedication.
Many scholars connote job satisfaction differently. Hoppock defined job satisfaction as any combination of psychological,
physiological and environmental circumstances that cause a person truthfully to say I am satisfied with my job (Hoppock, 1935).
Vroom views that job satisfaction focuses on the role of the employee in the workplace. Thus, he defines job satisfaction as
affective orientations on the part of the individuals toward work roles which they are presently occupying (vroom, 1964). The
term job satisfaction refers to the attitude and feelings people have about their work. Positive and favorable attitudes towards the
job indicate job satisfaction. Negative and unfavorable attitude towards the job indicate job dissatisfaction (Armstrong, 2006).
Lvancevich et al. (1997) defined job satisfaction as feeling and perception of a worker regarding his/ her work and how he or she
feels himself well in an organization. According to Davis and New Storm (1999), job satisfaction is an experience, which has
various aspects. The most significant aspects are those, which are relevant to working conditions and the nature of work. Low job
autonomy, low job security, low wages and lack of expectation for promotion negatively affect job satisfaction of employees
(Guest, 2004 and Silla et al., 2005).
Job satisfaction is the collection of feelings and beliefs that people have about their current job. People’s levels of degrees of job
satisfaction can range from extreme satisfaction to extreme dissatisfaction. People also can have attitudes about various aspects of
their jobs such as the kind of work they do, their coworkers, supervisors or subordinates and their pay (George et al., 2008). Job
satisfaction is a complex and multifaceted concept, which can mean different things to different people. Job satisfaction is usually
linked with motivation, but the nature of this relationship is not clear. Satisfaction is not the same as motivation. Job satisfaction is
more of an attitude, an internal state. It could, for example, be associated with a personal feeling of achievement, either
quantitative (Mullins, 2005).
Job satisfaction represents a combination of position negative feelings that a worker employed in a business organization, brings
with it the needs, desires and experiences which determinates expectations that he has dismissed. Job satisfaction represents the
extent to which expectations are and match the real awards. Job satisfaction is closely linked to that individual’s behavior in the
workplace (Davis et al., 1985).
According to lee and ho (1989) participation of employees in decision-making process adds positively in employee’s job
satisfaction. Job satisfaction and work motivation among the managers of Chinese restaurant in Hong Kong was studied by lam
et.al. (2001). The result of the study showed that the job itself, work environment and rewards are the important determinants of
job satisfaction in that industry.
18Lecturer, Government College Safidoo, Haryana, India, kavitajain4net@gmail.com

19Junior Research Fellow, Department of Commerce, Maharishi Dayanand University, Haryana, India, pjain1831@gmail.com
The term job satisfaction has been conceptualized in many ways. It focuses on all the feelings that an individual has about his/her
job. It has been assumed by organizational behavior researches that individuals also express high satisfaction in their jobs are
likely to be more productive, have higher involvement are likely to resign than employees with less satisfaction. Various
researchers in various spheres have studied it.
Arunima Srivastava and Pooja Purang (2009) conducted a study on Employee perceptions of job satisfaction: comparative study
on Indian banks. The objective of the study was to compare the job satisfaction level of employees of a public and private sector
bank and to ascertain whether the sectorial differences in terms of compensation, growth opportunities, social environment and
job security influence employees’ perception of job satisfaction. The study used independent samples t-test and qualitative
analysis and the results revealed that private sector bank employees report greater satisfaction with the pay and benefit aspect and
the public sector bank employees are more satisfied in respect to job security.
RaiImtiaz Hussain (2009) conducted a research to examine the relationship between dependent factor i.e. job satisfaction and all
independent factors i.e. pay, job security, supervision, relationship with coworkers and promotional opportunities. Correlation,
regression, reliability, means, median, independent samples t-test was applied to analyze the survey. The finding was that
supervision, job security and promotional opportunities have positive relationship with job satisfaction. Relationship with co–
workers is moderate with job satisfaction while pay has weak but positive relationship with job satisfaction.
K.R. Sowmya and N. Panchanathan (2011) conducted a research to identify the factors influencing job satisfaction of employees
in the banking sector in Chennai and to give suggestions about the factors influencing employee commitment level in the
organization to the banking sector. The researcher has done a factor analysis using principal component method. The results found
that the job suitability as well as working conditions and other interpersonal relationship among the workers is able to ascertain
their level of satisfaction with in the working domain.
Nalan Yetim and Unsal Yetim (2005) oriented a research to determine whether cultural orientations of employees’ job
satisfaction, which was pervasive, and salient attributes for Turkish society. The findings of the study revealed that paternalism,
collectivism and power distance predicted employees’ job satisfaction significantly.
Komal Khalid Bhatti and Tahir Masood Qureshi (2007) conducted a study to understand and analyze employee participation, job
satisfaction, employees’ commitment and employee productivity and to expose the scope of association sandwiched between
employee participation, job satisfaction, and employee commitment and employee productivity in Pakistan’s telecommunications,
oil & gas and banking sector organization. The finding was that employee participation not only an important determinant of job
satisfaction components. Increasing employee participation will have a positive effect on employee commitment and employee
productivity.
Dr. Nikkos Kakkos, Dr. Panaglotis Trivellas and Kaliopi Fillipon (2010), focuses on employee perceptions regarding job
motivation and work stress in order to study the relationship with the perceived employee job satisfaction in banking industry. It
examines the impact of multiple needs’ satisfaction, work stress and such variables as gender, age, work experience, work
position, educational level on job satisfaction. The findings of this study was that four motivation dimensions i.e. existence need –
pay, relatedness needs – supervisors, relatedness needs – peers and growth needs expected one dimension i.e. existence needs –
fringe benefits have a positive influence on job satisfaction. The analysis also supports a negative relationship between stress
experienced at work and employee job satisfaction while the latter seems to be influenced by employees’ age too.
Yasir Hussan, Kashifuddin, Zark–mir, Khalil Ahmed, Abdul Mateen, Waseem Ahmed and Ahmed Bilal Nasir (2011), conducted
a study to examine the job satisfaction level in private banking sector of Pakistan. The result of the study was that most of the
employees working in private banks are satisfied with their work, management functions and job positions. The study reveals also
some factors that are point of high concern to employees regarding satisfaction as- job security, organizational operations,
working conditions, incentives and rewards.
Debashish Sengupta (2009) conducted a research to ascertain the job satisfaction degree among bank officers, to elicit officer’s
views on the different factors of job satisfaction and to study the impact of different variables such as the occupational level, age,
education, organizational climate, economic background and gender on the various job satisfaction factors. Sampling techniques
used was no probability, convenience and judgmental. The finding shows that with the change of satisfaction determinants, level
of job satisfaction also varies.
Ahmed Imran Hunjra, Muhammad Irfan Chani, Sher Aslam, Muhammad Azam and Kashif – U. R. – Rehman (2010) oriented a
research to determine the impact of various Human Resource Management Practices like job autonomy, teamwork environment
and leadership behavior on job satisfaction. The study used correlation, regression and independent samples t-test. The findings
inferred that male and female workers have significantly different level of job satisfaction and there is a positive and significant
link between job satisfaction and Human Resource Management. Practices like team work environment, job autonomy and
behavior of leadership.
Nourdin Mansor, jannah Munirah Mohd Noor & Nik Fakrulhazri Nik Hassan (2012), conducted a study for exploring the
antecedents to the strengthening of job satisfaction. Further examination on differences between the work positions, work
experience as related to job satisfaction is expected to form the basis for understanding the job satisfaction level of banking staff.
Pilot testing was applied to conduct the study. The final analysis revealed that job satisfaction could be predicted by using
motivational factors, reward system, supervision / leadership, nurturing of working environment, and the competition climate
within the industry.
As, review of literature states that there are so many determinants which affects the job satisfaction level of employees, out of
which some affects positively and some of which negatively affects. In the present study, three aspects were studied i.e.
employees – management relationship, nature of the job and all the working conditions of the employee.
Employees-Management Relationship
It is a very important aspect of job satisfaction. If the relationship of employees with their management employees are
good then the good work of employees is appreciate by superior management very soon. Due to which employees get
motivated, do their work with the interest, and show dedication to their work. As a result, their satisfaction level
increases.
Nature of Job
The nature of the job of the employee also affects the satisfaction level of the employee. Nature of job means at which
level an employee is working. If an employee is highly educated and doing a respected job, he is more satisfied with the
nature of job. On the other hand, a less educated employee is doing a lower level job then he is also satisfied with his
nature of job i.e. why nature of the job affects the satisfaction level.
Working Conditions
It means all the circumstances in which an employee is working as: general infrastructure of the place where an
employee works. Therefore, it also affects the satisfaction level of the employee.
OBJECTIVES OF STUDY
 To undertake a comparative study of Job Satisfaction among employees between public and private sector banks
regarding employees-management relationship.
regarding job satisfaction level in relation to the nature of job.
regarding job satisfaction level in relation to the working conditions.
 To suggest the measures to improve upon level of job satisfaction.
HYPOTHESIS OF STUDY
1) There is no significant difference between public and private sector banks regarding employees-management
relationship.
2) There is no significant difference between the mean score of public and private sector banks regarding job satisfaction
level in relation to the nature of job.
3) There is no significant difference between the mean score of public and private sector banks regarding job satisfaction
level in relation to the working conditions.
Research Design: Research design of the study is descriptive in nature.
Locale of Study: The study was conducted in Rohtak and Gohana (Haryana) during the year, 2012.
Population of Study: All commercial banks of public and private sector in Rohtak and Gohana constitute the population of the
present study.
Sampling Method, Sample Size and Sample Unit: Convenience non-random sampling method was followed. 120 respondents
filled self-administered questionnaire. Data was analyzed based on responses provided by 120 respondents. Sampling unit of the
present study consists of employees of operating level of selected 4 banks (Two from public sector and two from private sector).
Research Instrument and Method: Survey was conducted. Well-structured questionnaire was developed for conducting the
study. Questionnaire was designed to obtain demographic information about respondent’s sex, education, marital status, age and
income. Second part of the questionnaire contains several statements on likert scale to measure job satisfaction and multiple
choice questions were asked to know the areas to improve job satisfaction.
ANALYSIS OF DATA
The collected data through questionnaire was coded and analyzed by t-test. It was analyzed by frequency also by using SPSS
version 17 for windows through the study.
Table-1: Demographic Profile of Respondents
Demographic Variables Frequency Percent

Gender
Male 74 61.7
Female 46 38.3
Total 120 100
Marital Status
Single 27 22.5
Married 93 77.5
Total 120 100
Ages
Below 30 55 45.8
30-39 24 20
40-49 8 6.7
50 and Above
Total 120 100
Educational Qualification
Diploma 23 19.2
Bachelor’s Degree 68 56.7
Master’s Degree 29 24.2
Total 120 100
Monthly Income
Below 10,000 7 5.8
10,001-20,000 44 36.7
20,001-30,000 21 17.5
Above 30,000 48 40
Total 120 100
The Table-1) depicts that 61.7% of the respondents are male employees and 38.3% are female employees. 45.8% of the
respondents are below the age of 30, 20% of the respondents are of the age between 30-39, 6.7% are of the age between 40–49
and 27.5% are of the age of 50 and above (Table 1.2). 22.5% of the respondents are single and 77.5% are married (Table 1.3).
5.8% employees are of the income below 10,000, 36.7% are of the income between 10,001 - 20,000, 17.5% are of 20,001-30,000
and 40% of the employees are of the income group 30,001-40,000 i.e. highest in percentage (Table 1.4). 19.2% of the respondents
having diploma courses, 56.7% having bachelor’s degree and 24.2% employees have the master’s degree (Table 1.5).
ANALYTICAL RESULTS
To undertake a comparative study between public and private sector banks regarding 1) employees-management relationship, 2)
in relation to the nature of job and 3) in relation to the working conditions, two independent samples t-test was applied. To
suggest the important areas for enhancing job satisfaction, frequency analysis was applied. Due to central limit theorem, it is
assumed that mean sore of employee management relationship, mean score of job satisfaction level in relation to the nature of job
and mean score of job satisfaction level in relation to the working conditions are normally distributed.
Objective Number-1: To undertake a comparative study between public and private sector banks regarding employees-
management relationship.
Table-2: Employee-Management Relationship*Type of Bank

Group Statistics
Type of Banks N Mean Std. Deviation

Public Banks 60 4.0278 0.6357
Employee Management Relationship
Private Banks 60 4.0361 0.72036
Sources: Primary Data
Table-3: Independent Samples T-Test
Leven’s test for Equality of Variances t-test for Equality of Means

F sig. T Df Sig. (2-tailed)
Equal variances assumed 0.372 0.543 -0.067 118 0.947
Equal variances not assumed -0.067 116.202 0.947
The Table-2 shows that there are 60 employees from the public sector banks and 60 employees from the private sector banks. The
mean value of public banks is 4.0278, which are more than 3, and the mean value of private banks is 4.0361, which are also more
than 3. It shows that employees of public and private banks are satisfied with their management.
The independent samples t-test [table-3] shows that the significance value of Leven’s test for equality of variances is 0.543 which
is greater than 0.05 (0.543> 0.05). It means that the population from which sample has been taken have equal variances. So we
interpret the 1st row, which shows the significant value (2-tailed) i.e. 0.947 which is more than 0.5. So null hypothesis (H0) is not
rejected and concludes that there is no significant difference between the mean score of public and private sector banks regarding
employees-management relationship.
Objective Number-2: To undertake a comparative study between public and private sector banks regarding job
satisfaction level in relation to the nature of job.
Table-4: Nature of Job * Type of bank

Group Statistics

Public banks 60 3.7 0.85291
Nature of Job
Private banks 60 3.9233 1.362

Equal variances assumed 0.472 0.83 1.016 118 0.284
Equal variances not assumed 1.076 99.106 0.284
The table-4 shows that the mean score of public sector banks is 3.7 and of the private sector banks are 3.9. Both have the value
greater than 3. It means that the employees of the public and private sector bank employees are both satisfied with their nature of
job.
The analysis of the independent samples t-test [table-5] indicates the significant value i.e. 0.830 which is greater than 0.05 which
means that population have equal variances. The sig. value comes to 0.284, which is more than 0.05. Therefore, the null
hypothesis is not rejected and concludes that there is no significant difference between the job satisfaction level of public and
private sector banks in relation to the nature of job.
Objective Number-3: To undertake a comparative study between public and private sector banks in relation to the
working conditions.
Table-6: Working Conditions * Type of bank

Group Statistics

Public banks 60 3.4933 0.79188
Working Conditions
Private banks 60 3.87 1.53858

Equal variances assumed 0.379 0.539 -1.686 118 0.094
Equal variances not assumed -1.686 86.21 0.095
The analysis of the group statistics shows that the mean score of public sector banks in relation to the working conditions of the
bank is 3.4933 and of the private sector bank are 3.87. It shows that both banks have the value greater than 3, employees of both
types of banks are satisfied with their working conditions of bank. (Table: 6).
Table7 shows the significance value of 0.539, which is greater than 0.5, it, is means that population of the study from which
sample has been selected have equal variances. According to which sig. value for t-test is 0.094, which is more than 0.05. So, null
hypothesis is not rejected and statistical results concludes that there is no significant difference between the public and private
sector banks regarding the job satisfaction level in relation to the working conditions.
Objective Number-4: To suggest the measures to improve upon the level of job satisfaction.
Table-8: Set Frequencies
Responses Percent of Cases

Dimensions
N Percent
1.Good Remuneration 95 18.30% 79.20%
2.Promotional Opportunities 93 17.90% 77.50%
3.Job Security 65 12.50% 54.20%
4.Incentives And Rewards 48 9.20% 40.00%
How to increase
5.Job Involvement 44 8.50% 36.70%
The level of job
6.Job Enrichment 31 6.00% 25.80%
satisfaction
7.Working Conditions 49 9.40% 40.80%
8.Skills And Abilities 51 9.80% 42.50%
9.Work Activities 43 8.30% 35.80%
Total 519 100.00% 432.50%
Graph-1
Table-8 shows that out of 120 employees, most of the employees consider good remuneration, promotional opportunities, job
securities, skills, and abilities as important measures of job satisfaction. Remaining measures are also important for job
satisfaction but the bank employees give these factors less weight age. Statistical results suggest that good remuneration and
promotional opportunities are most important measures to increase the satisfaction level of employees.
CONCLUSIONS
Job satisfaction of employees is vital for the development of the banks. To know the job satisfaction level of banking employees,
the present study has set up four different objectives. To attain objectives, data was analyzed by using t-test and frequency
analysis.
The statistical results of the independent samples t-test shows that there is no significant difference between job satisfaction of
public and private sector bank employees regarding 1) employees-management relationship, 2) in relation to the nature of job and
3) working conditions. Both the banks are satisfied with these aspects. Statistical results also cleared that good remuneration,
promotional opportunities, and job security are the important measures of job satisfaction.
REFRENCES
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banks. Asian Academy of Management Journal, 14(2), 65-78.
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Chennai, India. Journal of law and conflict Resolution, 3(5), 76-79.
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and Business Research, 11(12).
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Productivity. International Review of Business Research Papers, 3(2), 54-68.
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Investigation. Asia Pacific Journal of Business and Management, 1(1), 1-14.
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Polytechnic Institute and State University.
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commitment among public employees before privatization. European Journal of Social Sciences, 18(1).
9. Jain, Madhy, & Pratibha. (2006). Demographic Antecedents of Organizational Commitment and Job Satisfaction- A
Study on Engineers. Journal of Psychological Researches, 50(1), 34-40.
10. Singh, Mira, Hussain, G. M., & Rajul, Pathak. (1994). Job Involvement and Work Motivation among Different
Categories of Employees. Journal of Psychological Researches, 38 (1&2), 66-71.
11. Savery, Lawson K. (1989). The Influence of Job Factors on Employee Satisfaction. Journal of Managerial Psychology,
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12. Bhargava, S., & Kelkar, A. (2000). Prediction of Job Involvement, Job Satisfaction and empowerment from
organizational structure and corporate culture. Journal of Psychological Studies, 45(1 & 2).
*****
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CUSTOMER RELATIONSHIP MANAGEMENT IN BIHAR TELECOM SECTOR

Md. Mahmood Ul Farid20 B. K. Jha21
ABSTRACT
The purpose of this study is to ascertain customer satisfaction perception of Customer Relationship Management in telecom
sector Bihar. This study surveys more than 100 mobile telecom customers to investigate their opinion about the quality of
services offered by their service providers and its impact on customer satisfaction and hence customer. However, today,
telecom industry is facing an aggressive competition and lost a substantial portion of their business to other industries just
because lack of customer relationship management in the sector. Empirical findings present evidence that the quality of
customer service significantly affect customer satisfaction and thus customer loyalty.
KEYWORDS
Telecom, CRM, After Sales Service, Customer Care etc.
INTRODUCTION
In today’s globalised and borderless market, to attract and retain loyal customers are key for growth and survival. Business
success depends on understanding and meeting customers’ needs and demands. Today, often, the objectives become constraints
for businesses and their employees when they do not have appropriate tools, equipment, or methods to achieve this goal. Since the
last two decades, the telecommunications sector has become a vital key area for the economic development of nations. The nature
of a country’s telecommunication industry affects its pace of commercial and domestic activities.
It is well known that attracting new customers cost more compared to retaining existing ones (Hsieh, 2009). With this in mind,
information technologies (IT) can be used to establish strong and profitable long-term relationships with customers (Babu, &
Kumar 2010; Agrawal, Berg & Hsieh 2009). Long. Changing to customer-centric means that, organizations must build up ways of
gathering data about customers and obtain the needed tools to satisfy the desires of their customers (Mendoza et al., 2007).
CRM helps organizations understand their customers' requirements, and it is considered a tool for improving the competitive
advantage (Lin et al, 2010; Agrawal, & Berg, 2009) and to enhance innovation capabilities (Lin et al., 2010). CRM also helps
organizations become more effective and efficient when dealing with customers, which boost customer loyalty and satisfaction
(Pezeshki et al., 2009).
Nowadays, technology provides businesses with systems that can help companies track customer interaction with firms and allow
employees to quickly retrieve all information about the customers. This concept is called a customer relationship management
(CRM) system and if used properly, it could enhance a company’s ability to achieve the ultimate goal of retaining customers and
so gain a strategic advantage over its competitors.
Customer loyalty has been is more pronounced in today’s highly globalised, industrialized and competitive markets. The growth
and survival of companies depend on how loyal their customers are of which telecommunication is no exception. Various studies
have been carried out in the developed countries regarding customer loyalty. The concept of the vendors-customers relationships,
named “relationship marketing”, has evolved from the idea that there is a variety of customer relationships ranging from
transactional to relational dealings. Today, most companies seek to create total or cumulative customer satisfaction as opposed to
transaction specific customer satisfaction. Customer satisfaction and the quality of customer service are particularly considered
significant in building trustworthy relationships with customers and retaining the competitive advantage. Customer relationship
management gives firms the ability to deploy strategies by customizing individual customer relationships utilizing customer
databases, interactive and mass customization technologies (Verhoef and Donkers, 2001). It was principally evolved by marketing
(Kotler, 1997) and was started by a deep analysis of consumer behaviour.
CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management can be defined as the use of wide range techniques including pricing, communication,
marketing and research to allow the company understands their customers, isolate the best customers to enable the Companies
have long standing relationships, to create relationships stretching over time and involving multi interactions, manage that
relationship to mutual advantage and finally seek to acquire more of the best customers. CRM is a business process, which
integrates individual customer data from multiple sources in order to create a mutually valuable proposition Smith and Clark
(2002).
20Research Scholar, University Department of Commerce and Business Administration, T.M. Bhagalpur University, Bihar, India,
mahmood.mba@gmail.com
21Reader, Department of Commerce and Business Management, TM Bhagalpur University, Bihar, India, (M): 09431690332
There are two main types of customer relationship between an organization and its stakeholders, these include:
Transactional-Based Relationship
In this type of relationship between an organization and its stakeholders, organization provides a product or service in exchange
for money. The focus is on actual exchange. It builds a short-term profit for Network Company. The main performance indicator
is sales volume and so marketing decisions are primarily concerned with enhancing efficiency and effectiveness of that sale.
Relationship Marketing
Relationship marketing is to establish, maintain and enhance relationships with customers and other parties at profit so that the
objectives of the parties involved are met. This is done by mutual exchange and fulfillment of promises Gronoos (1994). Morgan
and Hunt (1994) also define relationship marketing as activities directed towards establishing and maintaining successful and
relational exchanges. The customer should receive a consistent and appropriate behaviour from their knowledge partners. The
requirement for consistency means those who meet the customers share the responsibility for customer care.
In relationship marketing, the sale of a product or service is not the end of the selling process but rather the start of an
organizations relationship with those customers. Telecom sector needs to build a long term, trusting and win-win relationship with
valued customers and other stakeholders. For instance, management Telecom sector can track their customers regularly to know
how well the network is helping them and offer advices where necessary. The reason of doing that is to know that the success of
their company is in direct relationship with the growth of the network.
The study was administered in Bihar (Patna and Bhagalpur region) State, India. The telephone service providers in Bihar during
the study period were as follows: a) BSNL (Bharat Sanchar Nigam Limited), b) Airtel, c) Reliance, d) Aircel, and e) Others.
BSNL (Bharat Sanchar Nigam Limited) is the Government owned service provider and the others are private players. The
adequacy, accuracy and appropriateness of the data collection tool were ensured after incorporating necessary corrections, before
administering the questionnaire for the final data collection.
Sampling Method, taking into account the operational difficulties associated in the process of data capturing. However, by going
through this method of sampling it was ensured that all units of the population were adequately represented.
Sample: The pilot study was administered on 120 samples, taken through convenient sampling method. A questionnaire is
distributed to telecom customers. However, the total number of usable questionnaire is 100 (20 questionnaires were found
incomplete).
Data collection: Questionnaire is developed in two parts. First part contains demographic questions such as gender, age and
education level. The second part assesses behaviour of customer care, customer care rating and waiting period for customer care.
Statistical Techniques used: To arrive at certain conclusions regarding the hypothesis advanced in the present investigation, the
following statistical tools for the analysis of data were employed. Percentage Analysis, Correlation Analysis T-test, calculations
have been made making extensive use of Microsoft Excel and SPSS Software Packages on the computer.
RESEARCH RESULTS AND DISCUSSIONS
In this part of the analysis, we discuss demographic information of the respondents. Table no. 1 shows that 79% are males. Ages
ranged from 15 to 25 years are 46% and between 26 and 40 years old are 29%. 20% of participants’ ages are between 41 and 55
years old. From educational perspective, 43% of participants hold graduation degree. 36% hold high school degree and 14% hold
postgraduate degree.
Table-1: Demographic Details
Frequency Percentage
Gender Male 79 79.0
Female 21 21.0
Age 15 to 25 years 46 46.0
26 to 40 years 29 29.0
41 to 55 years 20 20.0
56 and above 5 5.0
Education Illiterate 7 7.0
High School 36 36.0
Graduation 43 43.0
Post Graduate 14 14.0
Participant’s Customer Distribution
Through the below analysis we can easily find out that most of the people in Bihar prefer Reliance 31% and 28% people goes for
Air-tel. There is a very healthy competition between them and Reliance is still ahead in the competition. It is because of the
different schemes like Reliance to Reliance free talk etc. have helped it to gain the more market share which is found out in
survey. Air-cell is doing very well having a market share of 15%, company is peaking very fast. BSNL has only a fraction of
share 6%. Government sector is nearly losing their share. Other players are also doing very well by securing a handsome amount
of share of 20%. Mobile customers consist 90% of Pre-paid customer and 10% of post-paid customers. Telecom companies
regard post-paid customers as long-term relationship customers, whereas prepaid customers as short term ones. However, prepaid
customers yield highest profits due to the nature of prepaid plan prices where they tend to be more expensive with expiry dates.
Companies fight to attract post-paid customers as they provide stable and predictable income source for companies.
Services Rendering
Table-2
Connection Total
Pre-paid Post-paid
BSNL 5 1 6
Airtel 25 3 28
Reliance 27 4 31
Aircel 14 1 15
Others 19 1 20
Total 90 10 100
Telecom Sector Performance
As seen in our study, providing quality customer service leads to customer satisfaction. Satisfaction in turn leads to customer
loyalty. In other words, quality customer service leads to customer loyalty and hopefully customer retention. Customer
Relationship Management (CRM) plays a vital role in interacting with customers.
Calculation of Satisfactory Score
The respondents were asked to state their level of satisfaction relating to their service provider. Based on his or her responses the
satisfaction score obtained by each respondent was found out. A five-point Licker scale and five different scores were used to
represent the five-point scale: 1= Very Dissatisfied, 2 = Dissatisfied, 3 = Neutral, 4 = Satisfied, 5 = Very satisfied.
Concerning customer care services respondent had to answer the research question: Rate your customer care satisfaction level of
your service provider. Customers must have been satisfied or unsatisfied with their perception of services. Thus, hypothesized test
value in our study is 4 and it can split customers into satisfied and unsatisfied. In this way, the null hypothesis could be specified
as follow:
Null hypothesis Ho: μ ≥4 “Customers are satisfied with Customer care service quality”.
Null hypothesis Ho: μ ≥4 “Customers are overall satisfied with their Service provider”.
One Sample T Test was used to analyze customer expectation. The one-sample t test shows whether a mean of a single variable
differs from a specified constant.
Table-3: Demographic Details
N Mean Std. Deviation Std. Error Mean

Customer Care Rating 99 2.97 .984 .099
Overall Satisfaction Rating 100 3.48 .990 .099
The one-sample statistics table shows the mean, the standard deviation, and the number of participants in each condition.
Table-4: One-Sample Tests
Test Value = 4
95% Confidence Interval of Difference
T df Sig. (2-tailed) Mean Difference Lower Upper
Customer Care Rating -10.417 98 .000 -1.030 -1.23 -.83
Overall Satisfaction Rating -5.254 99 .000 -.520 -.72 -.32
As shown in Table 2, service scores had negative value, which means that service quality was not close to the service quality that
satisfies customers. Therefore, the null hypothesis was rejected, that means that customers were not satisfied with service quality.
Table2 also indicates that the p-value .000 is lower than the significant level .05, denoting that there is a significance difference
between customer satisfaction with service quality, and service quality delivered.
CONCLUSIONS
Therefore, we can conclude that:
Customers are not satisfied with Customer care service, provided by their telecom service provider in Bihar.
Their telecom service provider in Bihar does not satisfy customers overall.
This analysis is also based on the interviews with the management of telecom sector. When the question “how quickly the
customers complaint where handled. According to management, “we make sure we resolve that issue as quickly as possible”.
Another staff said “lower income levels customers never complained but gave a bad word-of-mouth recommendation to other
prospects”; but we encourage those customers to complaint and also trained our retailers to solve their quarries. One staff also
commented, we are paying attention to relationship management to satisfy more customer quarries and have more contact with
our customers.
SUMMARY OF FINDINGS
Based on the analysis of the data gathered, it could be conclude that majority of customers responses indicated that the
relationship they are having with their telecom service provider is not satisfactory. These observations confirmed the first
objective, which sought to determine the importance of customer relationship management. Responses gathered shows that
majority of customers given the questionnaires indicated that it is due to the quality and range of services provided by the network
was what convinced them to be loyal to the network. Some of the services include video calls, free night calls, mobile internet,
lower call charges and network clarity.
CONCLUSIONS
In the telecom industry today, there exist many choices of products, which may not be of much difference when it comes to cost
to the customer, hence customer retention schemes need to be put in place in order to maintain customers. Segmentation can help
in such a way that one is able to know the most valuable customers and hence accord them preferential treatment in terms of
customer service.
In conclusion, customer relationship management should be implemented properly by telecom sector. Marketers should not only
build a long-term relationship with customers but also with their staff, shareholders and other key parties (stakeholders) who have
interest in the activities of telecommunication company.
REFERENCES
1. Agrawal, G. K., & Berg, D. (2009). The Development of Services in Customer Relationship Management (CRM)
Environment from 'Technology' Perspective. Journal of Service Science and Management, 2(4), 432-438.
2. Babu, K., & Kumar, B. (2010). Customer Service Management-Turning Customer Loyalty into Profitability. Synergy,
8(2), 93- 98.
3. Boohene, R., & Agyapong, G. K. Q. (2011). Analysis of the Antecedents of Customer Loyalty of Telecommunication
Industry in Ghana the Case of Vodafone (Ghana). International Business Research, 4(1), 1-13.
4. Hsieh, M. H. (2009). A Case of Managing Customer Relationship Management Systems: Empirical Insights and
Lessons Learned. International Journal of Information Management, 29(5), 416-419.
5. Philip, Kotler. (2005). Management Information for Marketing Decisions. Marketing Management (5th ed.). London:
Marketing Planning.
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EMERGING INTER-DISCIPLINE APPROACH IN HRD WITH SPECIAL REFERENCE TO

BHARAT HEAVY ELECTRICALS LIMITED, TIRUCHIRAPPALLI
T. Suganya22
ABSTRACT
The purpose of this study is to establish responsibilities, policies, and procedures for the Human Resources Development of
BHEL. The programs for Training and Development, Welfare Measures provided in BHEL. All industries are made up of
people e and function through people, without people no industries exist. The resources for men, material and machinery are
collected, co-coordinated and utilized through people.
Human resource by themselves fulfill the objectives of an industries, they need to be united into a team. It is through the
combined effects of people that material and monetary resource are effectively utilized for the attainment of common
objectives without unity.
KEYWORDS
Resources Development, Training and Development, Welfare Measures, BHEL etc.
INTRODUCTION
Human Resource Development is "a continuous process to ensure the development of employee competencies, dynamism,
motivation and effectiveness in a systematic and planned way".
---T. N. Chabra
Human Resource Development (HRD) in an Organization is an integrated and collective from of practice among all levels of
Management. It helps all sorts of employees to acquire and sharpen the skills to perform. Their present and future roles, enables
them to utilize their inner potential and develop better environmental condition.
HRD programme needs the overall efforts of each employee in the form of its sub systems and processes.
It is common knowledge that without a continuous development of employees' competencies no organization can survive today let
alone grow or compete to be effective. Every manufacturing organization needs competent people in all areas whether they be
cost reduction in delay's increased customer's satisfaction., better quality, prompt service, improved market image and so on.
Human competencies are even more critical for service organizations such as banking, rural development, health, education etc,
where one has to deal constantly with people. In short, all types of organizations, which want to grow, diversify, renew, change,
improve or stabilize need competent employees. Human resource development meets this need.
Human Resource Development is a newly emerging field of study. Although development of human beings has been in existence
in some form or the other since the beginning of civilization, a planned and systematic approach to HRD in the corporate sector
emerged in the latter half of the 20th century.
In the past training was only planned way of developing human resources, but now HRD has emerged as an inter-disciplinary and
integrated approach to the development of human resources.
OBJECTIVES OF THIS PAPER
1. To study the Corporate Planning & Development in BHEL, Trichy.

2. To study the Training & Development in BHEL, Trichy.
3. To study the Welfare Measures provided in BHEL, Trichy.
4. To study the organization Development in BHEL, Trichy.
INTER DISCIPLINES IN BHEL, TRICHY
The top executives to be followed the corporate planning & development.
HRD encompasses these learning areas:
"Improving performance of an individual's present job (training); preparing an individual for an identified job in the not too
distant future (education); and general growth not related to any specific job (development)".
22Research Scholar, Department of Commerce & Management, Idhaya College For Women, Tamil Nadu, India,
sukamonisha@gmail.com
CORPORATE PLANNING & DEVELOPMENT
Corporate Planning & Development actions at BHEL follow the pattern of public sector enterprises in India. BHEL undertakes
the following functions:
1. Plan for modernization and expansion of manufacturing base.

2. Develop technology and management capability in view of the rapid rate of technological obsolescence.
3. Assist in the development, review and evaluation of product plans.
4. Introduce contingency planning in all areas of business operation.
5. Raising planning capability at divisions by conducting workshops on strategic plan, planning manager’s meetings etc.,
6. To preparation of functional plans.
7. Study organization needs.
8. Strategic Management Development.
9. Monitoring performance at divisions.
10. Environmental analysis.
The Corporate planning & Development group directs and coordinates the planning activity in the BHEL but the basic inputs for
the planning are generated by the top executives for the achievement of the goals.
TRAINING & DEVELOPMENT
Training refers to the instructions provided to increase the knowledge and skill for the current job. Development, on the other
hand, has broader scope and aims at developing an individual in all respects. Training aims at achieving immediate gains for the
organization while development aims at achieving long-term needs of the organization.
Organization takes up Executive development programmes to enhance the capabilities, potential and creative instinct of the
managers enabling them to be more effective in performing various managerial functions to achieve the pre-determined goals.
The development programmes include a course in Management Information Systems that help the organization to develop into an
efficient one in the long run.
The following are the main training activities being pursued in various divisions of BHEL:
 Induction Training;
 Artisans Retraining and Development;
 Supervisory Development;
 Executive / Management Development Programmes;
 Quality Training; and
 Worker-Education Programmes.
The training needs are identified on individual, group, unit, corporate and Government directive level. BHEL has a standard
system for training, which includes evaluation of the training programme.
A complete and thorough training and development is given to all the employees with reference to their work. In case of
promotion, a special training is given to employees who seek promotion. Correct training plays a critical role in promoting
efficiency, changing attitudes of officials and in inculcating a better sense of service.
Regular training programmes are organized by PCRI for specific requirements in the field of Environmental Audit, Water Quality
Analysis, etc. for various organizations. Every year, the institute imparts training to large number of graduate and post-graduate
students from various universities as vocational training.
WELFARE MEASURES PROVIDED IN BHEL – TRICHY
The welfare measures provided in BHEL, Tiruchirappalli units, are divided into types:
1. Statutory welfare measures, and

2. Non-statutory welfare measures.
Statutory Welfare Measures
Statutory welfare constitutes those provisions of welfare work, which are provided in different legislations, and it is obligatory on
the part of the employers to observe those provisions.
They are canteen, drinking water, washing facilities, latrines, urinals and bathrooms, facilities for storing and sitting, restrooms,
shelter and lunchrooms, first aid, occupational health service, safety, leave facilities, etc. Wages are paid after taking statutory
deductions such as: House rent and water charges, Provident Fund, if any, vehicle advance taken, club charges, diet charges in
case an employee is admitted in the company hospital, all advances and funds, employee pension, etc.
Non-Statutory Welfare Measures
Non-statutory welfare work includes those activities, which are undertaken by the employers for their workers voluntarily. The
non-statutory welfare measures play an important role because the various welfare activities of the employers not only increase
the efficiency of the workers but also reduce the chance of conflicts.
They are: Workers' education scheme, Death relief fund, Staff benefit fund, Group saving linked insurance, Leave travel
concession, uniform / stitching charges, protective clothing, allowances, advances, Festival advance, Advance for purchase of
motor car and motor cycle, House building advance, etc.
REWARD SYSTEM
Rewards motivate people to join the organization. Organizations do certainly rely on rewards to get employees to come to work
and perform effectively once they are hired. Outstanding works done by employees individually and in teams are recognized
through:
 Letters of Appreciation;
 Good work awards (cash) at section/department level;
 Gift on completion of 10 years of service;
 Suggestion awards (for those giving valuable suggestions);
 Token awards immediately on receipt of prima-acceptable suggestions;
 Sponsorship for competitions outside;
 Annual House-keeping and Safety awards;
 Quality circle awards, etc.
ORGANISATION DEVELOPMENT
Organization development may be defined as a technique for bringing change in the entire aspects of the organization so that
change is easily absorbed.
OD programme is carried out to build up teamwork and to improve work effectiveness through right attitude and productive work
culture, and thereby to promote the company values in the minds of trainees. The organization will identify the areas of
improvement in the selected section by interviewing as many employees as possible in the particular section. Findings in the
interview are discussed with the senior level executives and suggestions are invited for improvement in the identified areas,
interventions noted, the progress is reviewed, and the improvements are consolidated.
HRDC also conducts an action research on controlling the absenteeism through counseling. It helps in guiding the employees to
realize their mistake in their approach and rounding their ways. Situations may even demand family counseling and frequent
follow-up.
The labour-management relations prevailing in BHEL has much to be appreciated. A good labour-management relation is a sine-
quo-non of industrial progress and development. The most important factor in this relation is the Human Resource, which
appreciates and tones up the productivity of the organization. This has been fully understood and is the essence of success in
BHEL, Trichy.
SELECTION PROCESS
Organizations make large investment of money to get right kind of people. A sound selection procedure is therefore necessary.
More and more information is obtained at every step in the selection procedure about the applicant to decide regarding the
suitability of the candidate. The screening of applicants is done at every successive step to eliminate undesirables. The candidates
who are found suitable are finally selected.
PROMOTION POLICY
Granting of promotion to the employees is an important issue. It must be given due weight age because any person joining an
organization as an employee hopes for better prospects through promotion and, therefore, he works hard in quest of getting it.
Promotion motivates for hard work and boost up the morale of an employee. Management must therefore adopt a clear and sound
policy regarding promotion.
WORKING CONDITIONS
Productivity goes up if working conditions or environment at the work place is improved favorably. Favorable working conditions
save time, wastage of materials and man-hours and improve efficiency. Regarding working conditions like light, fan, toilet,
furniture and ventilation, the employees feel that the working conditions are adequate. All the employees are satisfied with the
working conditions.
The employees are satisfied with the welfare facilities provided to them like health care, education, transport, canteen, recreation,
Bank, etc.
MEDICAL EXAMINATION
The medical and physical examination has now become a part of selection procedure in India. The health of the employee is more
important to the organization. Health care is an important aspect of HRD. BHEL is providing health services through the hospital
established in the campus.
The employees are given free treatment both for inpatient and outpatients, and in addition, in the hospitals like Apollo Hospital in
Chennai. The entire expense is met by the BHEL. The employees are fortunate to have such a good facility within the township.
CONCLUSIONS
The subject of Human resource development is dynamic and fairly wide. It means different interpretation and is not limited to any
one country or one region, one industry or occupation. The line of democracy could not be very précised but what should be
common is that the welfare measures ameliorate the working and living conditions of the workers. The ultimate goal of providing
the HRD is to help the management. To get more efficiency from the workman and help them is to lead a happy and satisfactory
life.
As per the study which was undertaken regarding the HRD provided in BHEL Trichy-14 it was found that the HRD programmes
are undertaken sincerely and employees were satisfied with all the facilities provided by the company. It can also take further
effective steps to improve the existing HRD welfare facilities.
REFERENCES
1. Pradeep, Chandra Kathi. (1994, October-December). Performance appraisal system and their application to the
Government sector in India. Journals-Personnel Today.
2. Rao, T. V. (1999). Human Resource Development, New Delhi: Oxford and IBH publishing Company.
3. Ibid, 1
4. Jayakumar, V. (2012). Human Resource Management. Chennai: Lakshmi Publications.
5. Swanson, R. A., & Holton, E. F. (1997). Human Resource Development Research Handbook. San Francisco: Barrett-
Koehler.
6. (2006, September). BHEL Journal, 27(2), 62.
7. Elwood, F. Holton II, & James, W. Trott Jr. (1996). Trends toward a Closer Integration of Vocational Education and
Human Resources Development. Journal of Vocational and Technical Education, 12(2), 7.
8. Woodall, J. (2001). HRDI special issue: defining HRD. Human Resource Development International, 4(3), 287.
Retrieved from EBSCOhost.
9. Maurer, T. J. (2002, March). Employee Learning and Development Orientation: Toward an Integrative Model of
Involvement in Continuous Learning. 1(1), 9-44. doi:10.1177/1534484302011002
10. Holton, E. F. III. (2002, March). The Mandate for Theory in Human Resource Development. 1 (1), 3-8.
doi:10.1177/1534484302011001
11. Tuttle, M. (2002, March). A Review and Critique of Van Maanen and Schein’s Toward a Theory of Organizational
Socialization and Implications for Human Resource Development. 1 (1), 66-90. doi:10.1177/1534484302011004
12. Collins, D. B. (2002, March). Performance-Level Evaluation Methods Used in Management Development Studies
from 1986 to 2000. 1(1), 91-110. doi: 10.1177/1534484302011005
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STUDY ON EMPLOYEES JOB SATISFACTION: AN CONCEPTUAL REVIEW

V. Dhayalan23 K. Maran24
ABSTRACT
The broad objective of this study was to examine the nature and causes of job satisfaction. This was pursued through a
literature review of the more popular theories and models pertaining to job satisfaction that it is the most general level of
conceptualization and a tool to know - how much an individual is involved in his or her job.
KEYWORDS
Job Satisfaction, Performance, Relationship, Factors, Lifestyle etc.
INTRODUCTION
Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature of their work. Job satisfaction can be influenced
by a variety of factors, e.g., the quality of one's relationship with their supervisor, the quality of the physical environment in which
they work, degree of fulfillment in their work, etc. There is no strong acceptance among researchers, consultants, etc., that
increased job satisfaction produces improve job performance, in fact, and improved job satisfaction can sometimes decrease job
performance. For example, you could let sometime sit around all day and do nothing. That may make them more satisfied with
their "work" in the short run, but their performance certainly did not improve.
Personality type, coping skills, procedural justice, locus of control, and organizational involvement are all factors that affect job
satisfaction. This study looks at other factors such as age, education level, sex, shift, and part or full-time status to see how they
affect job satisfaction. Employees of the Wal-Mart Supercenter in St. Joseph, Missouri filled out surveys intended to gather
information about what makes people satisfied with their jobs, and what types of people are more likely to be satisfied with their
jobs. Results showed that there were three major predictors of job satisfaction: thinking all employees are treated
equally by their boss, sex (females were more satisfied than males), and employees seeing themselves having a future in their
present job. Factors hypothesized to be significant predictors of job satisfaction, such as education level and age, did not
turn out to be significant at all. Shift was significant, however, in that first shift workers were more satisfied with pay than were
second or various shift workers.
There have been many studies performed to determine variables that affect job satisfaction. Some have looked at factors such as
organizational involvement, locus of control, age, identification with role, dual career families, and commitment to
organization. Others have examined stress, Type a behavior, coping strategies, participation in decision making, procedural
justice, emotional exhaustion, race, And education.
Prause and Dooley found that a larger percentage of intermittently unemployed and non full-year poverty wageworkers expressed
dissatisfaction with their jobs when compared to the employed and full-year poverty wageworkers. This suggests superiors and
subordinates may tend to accentuate their differences and be more prone to stereotype one another. These are at the functional
core of many jobs. The study by labor economists of job satisfaction is still in its infancy. This may be, in part, because
economists are suspicious of the usefulness of data on reported well-being. However, it is known that satisfaction levels are
correlated with observable phenomena (such as quit behavior).
FACTORS AFFECTING JOB SATISFACTION
Work Itself: (a) Skill Variety, (b) Task Identity, (c) Task Significance, (d) Autonomy, (e) Feedback.
Pay Structure: It should be more attractive & lucrative. Some people get satisfaction only because of salary and compensation
and they stick to the organization for a long time.
Advancement Opportunities: There should be good scope and opportunity to grow. Opportunity should be given to employees
at regular interval.
Supervision: Proper supervision should be there in every organization. It helps the employee not to deviate from their path and
employee works in a proper way.
Co-Workers: It is an important factor. Employee feels comfortable when their colleagues are good. They feel happy, because
they can gain knowledge, culture, & so many things.
Environment: Company should be free from dispute, politics. Employees like to work in friendly environment.
23Research Scholar, Department of Management Studies, Sri Sairam Institute of Management, Tamil Nadu, India,
dhayalan.phd@gmail.com
24Director, Management Studies, Sri Sairam Institute of Management, Tamil Nadu, India, maran.mba65@gmail.com
Compensation & Benefits: Employee wants more compensation & benefits. Benefits attract employees like perquisites, fringe
benefits, and club memberships etc.
Training: What kind of training is given to the employees and whether they are gaining benefits out of it or not.
Climate, City & Neighbors: Employees wants to work in a good climate. Sometimes city also matters that it is affordable to him
a comparison of salary.
Ethics and Principle: The ways a firm is doing business. Some people are very ethical. They will never compromise with their
values & principles.
RELATIONSHIPS OF THE BIG FIVE TRAITS WITH JOB SATISFACTION
Neuroticism
Because of their essentially negative nature, neurotic individuals experience more negative life events than other individuals in
part, because they select themselves into situations that foster negative effect. To the extent that such situations occur on
or with respect to the job, they would lead to diminished levels of job satisfaction. Neuroticism has been described as the primary
source of NA, and the link between NA and job satisfaction was documented in meta-analysis.
Extraversion
Neuroticism is related to the experience of negative life events, extraverts are predisposed to experience positive emotions, and
positive emotionality likely generalizes to job satisfaction, as demonstrated meta-analysis of PA-job satisfaction relationships.
Evidence also indicates that extraverts have more friends and spend more time in social situations than do introverts and, because
of their social facility, are likely to find interpersonal interactions (such as those that occur at work) more rewarding.
Openness to Experience
Openness to Experience is related to scientific and artistic creativity, divergent thinking, low religiosity, and political liberalism.
None of these psychological states seems to be closely related to job satisfaction. Furthermore, it is noted that
"Openness to Experience is a 'double-edged sword' that predisposes individuals to feel both the good and the bad more deeply”,
rendering its directional influence on affective reactions like subjective well-being or job satisfaction unclear.
Agreeableness
McCrae and Costa (1991) argued that agreeableness should be related to happiness because agreeable individuals have greater
motivation to achieve interpersonal intimacy, which should lead to greater levels of well-being. Indeed, they found that
Agreeableness was positively related to life satisfaction, although at a relatively low level (mean = .16). Assuming these same
communal motivations exist on the job, and then the same process should operate with respect to job satisfaction’s Rgan and Lingl
(1995) apparently agreed, commenting that Agreeableness "involves getting along with others in pleasant, satisfying
relationships".
Conscientiousness
Organ and Lingl (1995) argued that Conscientiousness should be related to job satisfaction because it represents a general work-
involvement tendency and thus leads to a greater likelihood of obtaining satisfying work rewards, both formal (e.g., pay,
promotions) and informal (e.g., recognition, respect, feelings of personal accomplishment). Indirectly, the subjective well-being
literature also suggests a positive relationship between Conscientiousness and job satisfaction.
CREATING JOB SATISFACTION
For many of us, the idea of having a job that is truly satisfying - the kind where work does not feel like work anymore - is pure
fantasy. Sure, professional athletes, ski patrollers, and golf pros may have found a way of doing what they love and being paid for
it. However, is there actually anyone out there who dreams of sitting at a desk and processing paper, or watching products fly by
them on conveyor belts, or working to solve other people's problems? Career dreams are one thing; practical reality is often
another. When they happily coincide, seize the opportunity and enjoy it! Luckily, when they do not, it is good to know that it is
possible to get job satisfaction from a practical choice of career. Job satisfaction does not have to mean pursuing the ultra-
glamorous or making money from your hobby. You can work at job satisfaction, and find it in the most unexpected places. The
heart of job satisfaction is in your attitude and expectations; it is more about how you approach your job than the actual duties you
perform. Whether you work on the farm, a production line, in the corner office or on the basketball court, the secret is to
understand the key ingredients of your unique recipe for job satisfaction.
BUILDING JOB SATISFACTION
Once you have identified the blend of status, power, or intrinsic enjoyment that need to be present in your work for you to feel
satisfied, you then need to work on some of our seven 'ingredients' for a satisfying job. These ingredients are:
Self-Awareness
The first step in the search for job satisfaction is to know oneself. If you are to be happy and successful, you need to understand
your strengths and weaknesses. This will help you identify what types of profession will allow you to build on those strengths,
and minimize those weaknesses. A useful framework for conducting this type of analysis is a Personal SWOT analysis. It is
difficult to feel satisfied with something you aren't very good at, so rather than spend time beating yourself up about it, take a long
hard look at the things at which you excel, and try to find a position that uses some of those skills too. The greater the match
between your preferences and the requirements of the job, the more potential for job satisfaction you have. The remaining six
'ingredients' determine how much of that potential you actually achieve.
Challenge
Even if the job itself is not all that challenging, you can make it challenging. Some great ideas here include:
 Set performance standards for yourself and aim to beat your previous record, or set up a friendly competition among co-
workers.
 Teach others your skills - nothing is more challenging, or rewarding, than passing your skills and knowledge on to
others.
 Ask for new responsibilities - these will give you opportunities to stretch yourself.
 Start or take on a project that uses skills you would like to use, or want to improve.
 Commit to professional development - take courses, read books or trade magazines and attend seminars. However you
do it, keep your skills fresh and current.
Variety
Closely related to the need for challenge is the need to minimize boredom. Boredom is a common culprit when it comes to job
dissatisfaction. When your mind is bored, you lack interest and enthusiasm and even a well-matched job becomes dissatisfying.
Some common methods to alleviate boredom at work include:
 Cross train and learn new skills.

 Ask to be moved to a new assignment or department requiring the same skills.
 Ask to work a different shift.
 Volunteer to take on new tasks.
 Get involved with committee work.
 Go on an extended leave, or take a sabbatical.
Positive Attitude
Attitude plays a huge role in how you perceive your job and your life in general. If you are depressed, angry or frustrated, you are
much less likely to be satisfied with anything. Making a change to a positive attitude is a complex process that requires a lot of
work and a strong commitment. However, over time, you can turn your internal dialogues around and start to see most events in
your life as positive and worthwhile. Here are some tips:
 Stop negative thoughts from entering your brain.

 Reframe your thoughts to the positive.
 Put the events of the day in the correct context.
 Do not dwell on setbacks.
 Commit to viewing obstacles as challenges.
 Accept that mistakes are simply opportunities to learn.
 Become an optimist.
To help you with your quest to become positive, Mind Tools has a useful article titled Rational Positive Thinking, which helps
you to identify and change negative and unhappy thinking patterns.
Know Your Options

When you feel trapped, you can start to get anxious. At first, you wonder what else is out there for you. This progresses to the
point where you become convinced that anything other than the job you are doing has to be more satisfying. To combat this,
continuously scan your environment for opportunities. When you feel you have options, you have more control. When you make
a positive choice to stay with a job, that job has much more appeal than if you feel forced to stay because you feel you have no
alternative. Here are some tips:
 Keep a list of your accomplishments.

 Update your resume on a regular basis.
 Keep up to date on employment trends.
 Research other jobs that interest you.
 Adopt an 'I'm keeping my options open' approach.
Maintain a Balanced Lifestyle

You will have heard many times that you need to keep your life and work in balance. When you focus too much on one at the
expense of the other, you risk putting your whole system in distress. When work takes over your life, it is easy to resent it and lose
your sense of perspective: Suddenly everything about your life is clouded with negativity. The Life Career Rainbow and The
Wheel of Life are two great tools to use when seeking to attain and maintain an appropriate work life balance.
Find a Sense of Purpose

Last, but certainly not least (for many people) is the need to find a sense of purpose in the things you do. Even if you have a
boring job, it helps a lot if you can see the real benefit you are providing for people. Even the most mundane job usually has
purpose if you dig deep enough. In addition, if it doesn't, should you be wasting your life doing it?
CONCLUSIONS
In all cases, there is evidence of large perceived increases in strain over time. Roughly, half of all Worlds’ workers believe that
there has been in their workplace a significant rise in effort, responsibility and stress. Approximately a quarter believe that the
tightness of supervision has gone up significantly. The overall distributions, weighted to be representative of the World are as
follows: a) Sleep, b) Unhappiness, c) Lost confidence, d) Difficulties, e) Strain, and f) Worthless. It is not easy to know what to
make of the numbers. Taken at face value, they Seem remarkable, and perhaps worrying for the Western democracies. A natural
response is to wonder if human beings accidentally or deliberately exaggerate their difficulties. Therefore, Work plays a
significant role in our lives. In our quest to be happy and productive, having a strong sense of job, satisfaction is important. When
you are dissatisfied with your job, this tends to have an influence on your overall outlook on life. While you may not be in the
career of your dreams right now, it is still your responsibility to make sure that what you are doing is satisfying to you. By
knowing the key elements that go into job satisfaction, you can choose to take control and make the changes you need to feel
really satisfied and motivated by what you do. Make one small change at work today that makes you feel good or different - build
on that change and create a satisfying environment for yourself.
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9. Carmody, H. (1987, August). The job satisfaction of non-professional library staff (Book Review). Canadian Library
Journal, 44, 255-256.
10. Dickinson, G. K. (2002). A new look at job satisfaction [theoretical approach]. Library Administration &
Management, 16(1), 28-33.
11. Madhavan, S. M. (2000). The job satisfaction level of Chinese and Indianan born engineering faculty (Research
University Dissertation). West Wirginia University.
*****
Editor-In-Chief
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STRESS MANAGEMENT IN SRI VENKATESWARA INSTITUTE OF MEDICAL SCIENCES

HOSPITAL, TIRUPATI, ANDHRA PRADESH
Himabindu N.25 S. M. Syed26
ABSTRACT
The word stress is derived from Latin word “Stringi” which means “To Be Drawn Tight”. In medical terms, stress is defined
as “a physical or psychological stimulus that can produce mental tension or physiological reactions that may lead to illness”.
According to Richard S Lazarus, stress is feeling experienced when a person thinks “the demands exceed the personal and
social resources the individual is able to mobilize”.
Work stress is a major challenge for the workers and their employing organizations. Workers who are stressed are also more
likely to be un healthy. Poorly motivated, less productive and less safe at work. Their organizations less likely to be successful
in competitive market. Good management and good work are the best forms of stress prevention. It is important that the work
place be monitored from time to time.
Work related stress is the response people may have when presented with the work demands and pressures that are not
matched to their knowledge and abilities and which challenge their capabilities to cope with its demands and pressures
research findings show that most stressful type of work is that which values excessive demands and pressures that are not
matched to workers knowledge and abilities, where there is little opportunity to exercise any choice or control, and where
there is little support from others. The more demands and pressures of work are matched to the knowledge and abilities of
workers, the less likely they are to experience work stress.
There has to be some outlet for the people under stress, to relieve them of their pressure. Thus, the concept of “Stress
Management” has being discussed here. In this particular SVIMS organization a sample size of 120 were taken from a total
population of 1200 employees. I have used Random Sampling Method for the purpose of data collection.
This paper examines the stress levels of employees of various departments working for SVIMS Hospital, Tirupati (A.P). This
paper also explains reasons for their stress. This paper also concludes what measures employees are taking to overcome stress
and these studies findings and suggestions helps to suggest measures to overcome stress. From this study, it can be concluded
that there is significant relationship between stress and sexual difference.
KEYWORDS
Stress Management, Long Hours, Working Conditions, Recreational Facilities, Meditation & Counseling Sessions etc.
INTRODUCTION
The word Stress is derived from Latin word “Stringi” which means, “to be drawn tight”. There is no single definition for the term
stress. In medical terms stress is defined as, “A physical or psychological stimulus that can produce mental tension or
physiological reactions that may lead to illness”. According to Richard S Lazarus, stress is a feeling experienced when a person
thinks, “the demands exceed the personal and social resources the individual is able to mobilize”.
These are few terms, which are related to stress:
Stressor: A specific problem, issue, challenge, personal conflict.
Stress Reaction: An individual response to a given stressor (psychological, behavioral, emotional, signs, symptoms).
Strain: The prolonged impact of a stressor on the system, fatigue, precursor to illness.
Work stress is a major challenge for the workers and their employing Organizations. Workers who are stressed are also more
likely to be unhealthy, poorly motivated, less productive and less safe at work. Their Organizations are less likely to be successful
in competitive market. Good management and good work are the best forms of stress prevention. It is important that the work
place be monitored from time to time.
There has to be some outlet for the people under stress, to relieve them of their pressure. Thus, the concept of “Stress
Management” has been used here, wherein the pent up frustrations and the stress of the people are looked into and various coping
strategies are suggested to help them relieve their stress.
25 Research Scholar, Department of Management Studies, Sri Venkateswara University, Andhra Pradesh, India,
himasrees@gmail.com
26 Research Scholar, Department of Management Studies, Sri Venkateswara University, Andhra Pradesh, India,
syedmbaphd@yahoo.com
SOURCES OF STRESS
The following have been outlined as sources of work stress in women:
Job Condition: Quantitative & qualitative work overload, people decisions, physical danger, and techno stress.
Role Stress: Role ambiguity, gender bias and sex – role stereotypes.
Interpersonal Factors: Poor work and social support systems, lack of management concern for the worker, political rivalry,
jealousy, or anger.
Career Development: Under promotion, over promotion, job security, frustrated ambitions.
Organizational Structure: Right and impersonal structure, political battles, inadequate supervision or training, non-participative
decision-making.
Home – work Interface – Spillover: Lack of support from spouse, martial conflict, dual career stress.
EFFECTS OF STRESS
In short, the effects of stress can be broadly categorized in to 3 areas:
Physiological Effects
These could take the form of increased blood pressure, increased heart rate, excessive sweating, frequent hot & cold spells,
breathing problems, muscular problems so on.
Emotional Effects
These include anger, anxiety, nervousness, irritability, depression, low self-esteem, unhappiness with superior and job
dissatisfaction.
Behavioral Effects
Work stress can cause individual behavior changes visible in the form of absenteeism, higher turnover rates, frequent lapse in job
performance, improper communication and so on.
Figure-1
Consequence of Distress
Physiological
Work Related  Heart disease,
Stressors  Ulcers,
 High blood pressure,
Interpersonal stressors  Headache
Stress
 Sleep disturbance
Role related stressors
 More illness
Psychological
Organizational physical
environment stressors  Job dissatisfaction,
 Depression,
 Exhaustion,
 Moodiness,
 Burnout.
Behaviour
Non-Work  Lower job performance,
Stressors  More accidents,
 Faulty decisions,
 Higher absenteeism,
 Workplace aggression.
Sources: Adapted from H. Selye. The Stress of life, (New York, NY: McGraw-Hill, 1956)
The above diagram depicts the causes and consequences of work related stress both at individual and organizational levels.
STRATEGIES FOR COPING WITH STRESS
a. Prioritize and Delegate work,

b. Laughter and Exercise,
c. Relaxation and sleep,
d. Healthy Diet.
Kochar (2006) had analyzed a study on “Role of stress an organization in Kurukshetra”. Role stress is the stress experienced by
the persons because of their role (job) in the organization. They assume a role based on the expectation of the self and others at
work place. The family members try to adjust their roles within the family and a change is being felt in their attitudes.
John Mathew (2000) examines a study on “stress at the work place in Gujarat”. Everyone is under stress. It is nothing bad; neither
does it always hamper your performance. Look at the people who drive the heavy locomotives, dive deep in the sea, the coal
miners, the mountaineers, who live with stress all the time. The notable difference is that they can handle the stress, because of
their capacity to take control over the factors that cause stress.
Owen (2006) attempted to study “The occupational stress among correctional supervisors”. The purpose of this research was to
examine occupational studies have focused on correctional officers; the systematic study of correctional supervisor stress has been
neglected. Results indicated that overall stress levels were low. Furthermore, reported levels of stress do not vary along gender,
race, educational level and institution. However, three variables were significant predictors of low levels of stress high levels of
job satisfaction, high levels of social support and an internal locus of control.
Micheal (2007) in his study “Coping Strategies in the Work place: Relationships with Attribution Style and Job Satisfaction in
Orlando”. This research examined the relationships between workplace coping strategies, occupational attribution style, and job
satisfaction among a sample of 190 nurses employed with a Veterans Affairs Medical Center. As an occupational group, nurses
experience high levels of chronic workplace stressors.
Stephen (2007): in his study ‘Workplace stress in London”. The aim of this review was to evaluate research relating to the role of
gender in the level of workplace stress. A further aim was to review literature relating to stressors of particular relevance to
working women. These stressors included, multiple roles, lack of career progress and discrimination and stereotyping.
Wells et al. (2009) attempted to study “The job stress among staff in juvenile homes”. The job stress subscale of the prison social
climate survey, 443 (72 percent of those surveyed) working in residential placement facilities and group homes operated on a
wide range of potential predictors. The significant predictor variables were all related to the work environment; background
variables had no predictive utility lower staff was predicted by organizational satisfaction and commitment, job satisfaction and
sense of personal efficacy. Staff who perceived less danger in the work environment and those who did not supervise other staff
reported lower stress. Implications of the findings for policy and practice are discussed.
Jennifer Wright (2006) analyzed a study on “Women and workplace Stress”. Stress in the workplace has become an occupational
health and safety risk worldwide, including the U.S. debate centers around who is responsible for illness related to stress if the
workplace is contributing. Research shows that a majority of work related stress is borne out of attrition and the requirement for
more in less time by employees.
RESEARCH PROBLEM
Stress levels of employees of various departments working for SVIMS Hospitals.
OBJECTIVES OF STUDY
 To find out the stress levels of employees of various departments working for SVIMS Hospital.
 To study reasons for their stress.
 To find out what measures employees are taking to overcome stress.
 To find out significant relationship between stress and sexual difference.
 To suggest measures to overcome stress.
Scope: Management of employees of an organization is very challenging Job, because no two persons are similar in their abilities,
attitude, thinking and behavior. Therefore, the stress levels also vary from person to person. My study aims at dealing with stress
levels of employees of various departments working for SVIMS Hospitals.
Explanatory
To study the cause and effect relationship between different variables.
Sample Design, Size and Methods
All items under consideration in any field constitute “universe”. The items selected from the universe for our study purpose is
technically called SAMPLE, and the way of selecting sample is called sample design. In this particular organization a sample size
of 120 were taken from a total population of 1200 employees. Random Sampling Method for the purpose of data collection. Data
is collected from both sources: a) primary sources through questionnaire, interview technique, observation methods, and b)
Secondary sources through books, websites, journals and articles.
Statistical Tool and Techniques
The data collected were analyzed using a) percentage analysis, and chi-square test.
SVIMS Hospital
Alleviating human suffering has been a part of dedicated services of Tirupati Tirumala Devasthanams to the mankind. To provide
the most advanced medical technology to the needy, the T.T.D. has launched a monument, a blessing from the Lord by opening
Sri Venkateswara Institute of Medical Sciences, a sophisticated super specialty hospital at Tirupati in Andhra Pradesh. SVIMS
was conceived in the year 1986 on the lines of AIIMS, New Delhi and the foundation stone was laid on 18.4.86 by Late Sri. N. T.
Rama Rao, the Hon'ble Chief Minister of Andhra Pradesh in the world famous pilgrim town Tirupati. It was established with a
view to providing Super Specialty facilities with nominal cost to the poor.
DATA ANALYSIS
Do you feel stress at your work?
Table-1
Options Opinions Respondents Percentages

A Yes 45 37.5
B No 15 12.5
C Sometimes 60 50
Total 120 100
Inference: From the above table, it is observed that 37.5% of the respondents are feeling stress,12.5% of the respondents are not
feeling stress,50% of the respondents are feeling stress sometimes at their work due to various reasons like work pressure ill
health, Deadlines etc.
Do you think you are handling too many responsibilities?
Table-2

A Yes 55 46
B No 40 33
C Sometimes 25 21
Total 120 100
Inference: From the above table it is observed that 46% of the employees are handling too many responsibilities, 33% of the
employees are not handling responsibilities and rest of 21% of the employees are sometimes handling their responsibilities.
Do you find difficult to make the decisions and stick to them?
Table-3

A Mostly 54 45
B Sometimes 26 22
C Very rare 28 23
D Never 12 10
Total 120 100
Inference: From the above table it is observed that mostly 45%, sometimes 22%, very rare 23%, never 10% of the employees are
finding difficulty to make decisions and stick to them.
Do you work for long hours by your own choice?

Table-4

A Yes 36 30
B No 26 22
C Sometimes 58 48
Total 120 100
Inference: From the above table it is observed that 48% of employees are sometimes interested in working for long hours by their
own choice but not with the pressure of management, 30% of the employees are interested in working for long hours, 22%of the
employees are not interested in working for long hours.
Do your family members complain that you are giving them enough time?
Table-5

A Yes 65 54%
B No 35 29%
C Sometimes 20 17%
Total 120 100
Inference: From the above table it is observed that employees revealed that their stress level is affecting their family members
mostly, because they are unable to meet the expectations and requirements of their family members.
Do you complete your work on time?
Table-6

A Yes 80 67
B No 25 21
C Sometimes 15 12
Total 120 100
Inference: From the above table it is observed that 67% of the respondents are completing their work on time,12% of the
respondents are sometimes completing their work, rest of 21% are not completing their work on time.
Do you feel stress during the day?
Table-7

A Yes 65 54
B No 35 29
C sometimes 20 17
Total 120 100
Inference: From the above table it is observed that 54% of the respondents are feeling stress during the day, 29%of the
respondents are not feeling stress, sometimes 17% of the respondents are feeling stress during the day.
If you feel stress what is the reason for your stress?

Table-8

A Long Working Hours 17 14
B Volume of Work 21 17
C Nature of Work 10 8
D Dead Lines 10 8
E More Responsibilities 16 13
F Employee-Employer Relationship 6 5
G Any Other Reason 0 0
H None of Them 40 35
Total 120 100
Inference: From the above table it is observed that 35% of the respondents have no reason to feel stress in their working
organization and remaining respondents are feeling stress for so many reasons such as volume and nature of work, long working
hours.
Do you feel that the shift system reduces stress?
Table-9
Options Opinion Respondents Percentages

A Yes 45 37.5
B No 45 37.5
C Not Applicable 30 25.0
Total 120 100
Inference: From the above table it is observed that 37.5% of the respondents feels shift system reduces the stress, 37.5% of the
respondents does not feel that the shift system reduces the stress, 25% of the respondents are not applicable for shift system.
Are you satisfied with your working conditions?
Table-10

A Yes 56 46
B No 30 25
C Sometimes 34 29
Total 120 100
Inference: From the above table it is observed that 46% of the respondents are satisfied, 29% of the respondents are sometimes
satisfied, and 25% of the respondents are not satisfied with their working conditions.
Do you know how to manage stress?
Table-11

A Yes 92 77
B No 28 23
Total 120 100
Inference: From the above table it is observed that 77% of the employees know how to manage stress as they are following tips
like listening music, meditation, reading books and spending weekends with family etc, 23% of the employees are not managing
their stress.
Have you been to any counseling sessions on Stress Management?
Table-12

A Yes 82 68
B No 38 32
Total 120 100
Inference: From the above table it is observed that except few departments, 68% of all the respondents of different departments
have been too many counseling sessions on stress management, 32% of the respondents are not attending counseling sessions on
stress management.
Do you want any recreational facilities in your organization?
Table-13

A Cafeteria 36 30
B Snooker Parlor 26 22
C Gym 16 13
D Swimming Pool 36 30
E Any Other 6 5
F None Of Them 0 0
Total 120 100
Inference: From the above table it is observed that 30% cafeteria, 30% swimming pool, 22% snooker parlor,13% gym,05% any
other, of the employees want the recreational facilities in their organization. Some of the employees suggest about refreshment
tours.
Which of the following you suggest to overcome stress?
Table-14

A Meditation 80 67
B Rest Hours 20 17
C Playing Games 14 11
D Other Suggestions 6 5
Total 120 100
Inference: From the above table it is observed that 11% of the employees suggest playing games, 5% of the employees suggest
other suggestions, 17% of the employees suggest rest hours, and 67% of the employees have good opinion about meditation to
overcome the stress. They know how to manage stress as they are suggesting some tips like taking short breaks during the work.
Listening music, reading books, and cracking jokes with co employees for some time.
Chi Square Table
Aim: To find out significant relationship between stress and sexual difference.
Null Hypothesis: There is no significance relationship between stress and sexual difference.
Alternative Hypothesis: There is significance relationship between stress and sexual difference.
Observed Frequency
Table-15
Stress Yes No Sometimes Total

Sex
Men 20 10 15 45
Women 25 5 45 75
Total 45 15 60 120
Expected Frequency
Table-16
Stress Yes No Sometimes

Sex
Men 16.87 5.62 22.5
Women 28.12 9.37 37.5
Total 45 15 60
Table-17: Chi Square Table
Oi Ei Oi-Ei (Oi-Ei)2 (Oi-Ei)2 / Ei

2.0 16.87 3.13 9.79 0.58
25 28.12 3.12 9.73 0.34
10 5.62 4.38 19.18 3.41
5 9.37 4.37 19.09 2.03
15 22.5 7.5 56.25 2.50
45 37.5 7.5 56.25 1.50
10.36
Calculated Value = 10.36
Degree of Freedom = (r-1) x (c-1) = (2-1) x (3-1) = 2
Level of Significance = 5%
Table Value = 5.991
Conclusion: Since the calculated value of chi-square is more than table value, so null hypothesis is rejected.
Inference: There is significant relationship between stress and sexual difference.
FINDINGS
 It is found that out of 120 respondents 37.5% of the respondents are feeling stress.
 The study reveals that 46% of the employees are handling too many responsibilities.
 Mostly 45% of the respondents are finding difficulty to make decision and stick to them.
 Employee revealed that their strong level is affecting their family members mostly because they are unable to meet the
expectations and requirements of their family members.
 It is found that 33% of the respondents are not completing their work on time.
 It is found that 54% of the respondents are feeling stress during the day.
 It is found that 65% of the respondents are feeling stress for so many reasons such as volume and nature of work, long
working hours.
 The study reveals that SVIMS organization employees know the tips to overcome the stress while working in this
organization.
 It is found that 37.5% of the respondents feel shift system reduces the stress.
 It is found that 25% of the respondents are not satisfied with their working conditions.
 The study reveals that 77% of the employees know how to manage stress as they are following tips like listening music,
meditation, reading books and spending weekends with family etc.
 The study reveals that 68% of the respondents of different departments have been too many counseling sessions on
stress managements.
 It is found that SVIMS organization employees want recreational facilities such as cafeteria snooker parlor, gym,
swimming pool, some of the employees suggest about refreshment hours.
 The study reveals that 67% of the respondents suggest meditation helps to overcome from stress.
 The study reveals that there is a significant relationship between stress and sexual difference.
SUGGESTIONS
Stress should be curbed at the initial stages before it reaches Burn Out stage. Measures should be taken to overcome stress. Some
of the suggestions are:
 Since stress is inevitable, employees should be trained to cope with stress i.e., to take it in a positive sense. They must
view stress as a challenge but not as an obstacle.
 Effective time management is one way to reduce stress.
 Employees must associate with people with whom they enjoy and share problems with those who support them.
 Employees should take short breaks to refresh their minds.
 Meditation helps the employees to avoid stress related problems.
 Though cigarettes, alcohols and sleeping pills give relief from stress, they should be avoided because they are hazardous
to health.
 Employees must see to it that, they do not carry work problems to home.
 Persons suffering from distress or burnout should express themselves.
 Employees should not work overtime unless they feel it is necessary.
 Proper sleep, Watching TV, Cracking Jokes, Listening to Music, Playing Games are some tips to overcome stress.
It is imperative on the part of Management to take some measures to curb the stress of their employees. Some of them are;
 Provision of healthy and hygienic climate in the organization,
 Role ambiguity should be reduced,
 Provision of healthy and hygienic climate in the organization,
 Role ambiguity should be reduced,
 Timings must be made flexible,
 Too many responsibilities and work pressures should be reduced organizational functioning should be monitored from
time to time and changed when required,
 Individual and group counseling sessions should be held periodically,
 Recreational activities should be conducted,
 Constraints and demands should be avoided,
 Management should not change its policies very frequently,
 Management should encourage their employees with rewards and promotions,
 Job enrichment and Job Rotation should be implemented,
 Management must give enough time to the employees to learn newly introduced concepts relating to their jobs.
CONCLUSIONS
Alleviating human suffering has been a part of dedicated services of Tirupati Tirumala Devasthanams to the mankind. To provide
the most advanced medical technology to the needy, the T.T.D. has launched a monument, a blessing from the Lord by opening
Sri Venkateswara Institute of Medical Sciences, a sophisticated super specialty hospital at Tirupati. It was established with a view
to providing Super Specialty facilities with nominal cost to the poor.
It was a pleasure to interact with employees of SVIMS Hospitals, who has shown keen interest in this project work and almost all
of them were aware of the term Stress and Stress Management. They took out time from their busy schedule to fill up the
questionnaires and responded to the queries posed to them .Some employees were anxious to know the result. Based on my study
I found that the employees of SVIMS Hospital are undergoing stress due to various reasons. Since stress is inevitable, employees
cannot avoid it, but must learn to cope with it. Therefore, I gave few suggestions as to how to cope with stress, mostly, to provide
recreational activities and to conduct counseling sessions.
REFERENCES
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0709952554, Cambridge: Great Briton University.
2. Jonathan, C. Smith. (2002). Stress management: a comprehensive handbook for techniques and strategies. New York:
Springer Publishing Company.
3. Kochar, G. (2006). Role Stress and Preventive Management. The International Journal of world health and societal
politics, 3, 265-289.
4. Michel. (2007). Coping strategies in the work place relationship with attribution style and job satisfaction. 177-193,
Netherlands: Springer Publishers.
5. Wells. (2009). The Job Stress among Staff in Juvenile Correctional Facilities. Eastern Kentucky University.
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University.
7. Panner, Sselvem R. (2010). Research Methodology. Eastern Economy (8th ed.). New Delhi: PHI learning Private
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10. Garry, Dessler. (2002). Human Resources Management (8th ed.). New Delhi: Pearson Education Private Limited.
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Limited.
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22. Retrieved from www.stressmanagement.com
23. Retrieved from www.svimshospital.com
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26. Retrieved from http://www.mindtools.com/pages/article/newTCS-00.htm.
27. Retrieved from http://www.businessballs.com/stressmanagement.htm.
28. Retrieved from http://www.stress.org.uk/
*****
CASE STUDY ON EMPLOYEES PERFORMANCE APPRAISAL

IN GMR INFRASTRUCTURE LIMITED
Cheekoori Jyothsna27 Cidda Reddy Jyoshna28 Channa Rajanikanth29
ABSTRACT
Performance appraisal is essential for the effective management and evaluation of staff. Appraisals help to develop individuals
and improve organizational performance. Formal performance appraisals are generally conducted annually for all staff in the
organization. Annual performance appraisals enable the management to the standards; agree on expectations and objectives,
and delegate responsibilities and tasks. Staff performance appraisals also establish individual training needs and enable
organizational training needs analysis and planning. Performance appraisals data feeds into organizational annual pay and
grading reviews, and coincides with the business planning for the next trading year. Performance appraisals generally review
each individual’s performance against objectives and standards for the trading year, agreed at the previous appraisal meeting.
Performance appraisals are also essential for career and succession planning. Performance appraisals are important for staff
motivation, attitude and behaviours development, communicating organizational aims, and fostering positive relationships
between management and staff. Performance appraisal provides a formal, recorded, regular review of an individual’s
performance, and plan for future development.
KEYWORDS
Performance Appraisal, Employees, Work Life, Organizational Goals, Career Development etc.
INTRODUCTION
Once the employee has been selected, trained and motivated, then appraisal is made for their performance. If any problems are
identified, steps are taken to communicate with the employee and to remedy them. Performance appraisal is a process of
evaluating an employee’s performance of a job in terms of its requirements. Individually or collectively, it is a part of all the other
staffing processes, as a requirement, selection, placement and induction. Performance appraisal, also known as employee
appraisal, is a method by which the performance of an employee is evaluated (generally in terms of quality, cost and
time).Performance appraisal is a part of career development for employees in the organization. Performance appraisal is a method
of acquiring and processing the information needed to improve an individual employee’s performance and accomplishments. In
many organization appraisal results are used, either directly or indirectly that helps to determine reward outcomes i.e., the
appraisal are used to identify the better performing employee who should get the merit, increase of pay, bonus and promotions.
Performance appraisal is the systematic evaluation of the individual with respect to their performance on the job and their
potential for development. Performance appraisals actively involve employees in understanding what is expected of them by
setting agreed objectives and later reviewing the results from each employee about their own performance.
DEFINITIONS
"Performance appraisal is the systematic description of an employee's job relevant strengths and weaknesses."
Wayne Cascio
“Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the
performance of the employee. Based on these appraisal future Promotions, incentives, increments in salary are decided.”
Edwin Flippo
“A basic human tendency to make judgments about those one is working with, as well as about oneself.”
Dulewicz (1989)
SCOPE OF STUDY
The scope of the study involves providing employees with a better understanding of their roles and responsibilities and increase
confidence through recognizing strengths and identifying training needs to improve weakness. The study aims at improving
working relationships and communication between superiors and subordinates, increase commitment to organization goals, and
develops employees in to future supervisors. This study also assist in personnel decisions such as promotions or allocating
rewards and allow time for self-reflection, self-appraisal and personal goal setting.
27 AssistantProfessor, Department of MBA, Sreenivasa Institute of Technology & Management Studies, Rajasthan, India,
jyothsnacheekoori@yahoo.com
28 Assistant Professor, Department of MBA, Sreenivasa Institute of Technology & Management Studies, Rajasthan,
josh.jyoshna2008@gmail.com
29 Associate Professor, Department of MBA, Sri Venkateswara College of Engineering & Technology, Rajasthan, India,
rajanihod@gmail.com
STATEMENT OF PROBLEM
The present study is chosen for its relevance to the private sector enterprises, as it reflects the various hidden issues pertaining to
employee performance appraisal and its impact. There are many problems relating to employee performance appraisal like lacking
of a proper framework to evaluate and measure the employee in so many private sector enterprises.
On account, these problems there are many competent and skilled employees affecting, negatively in their job progression. In
India, except some organizations which have not possess a proper framework in apprising their employees. These problems must
be investigated and an attempt should be made to identify present apprising system and to create a pragmatic, transparent
framework of employee performance appraisal.
OBJECTIVES OF STUDY
 To review the performance of the employees once a given period.

 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 To help the employees in identifying their strengths and weakness, to plan the various training and development needs
of the future.
 To provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
 To provide feedback to the employees regarding their past performance.
LIMITATIONS OF STUDY
 This study is confined only to GMR Infrastructure Limited.

 Time is a major constraint.
 Sample size is 130 respondents.
 The respondents are hesitant to give the necessary information because of the fear of the management.
Type of Research: The research design used for the research is Descriptive Research Method. Simple random sampling method
is used to obtain information from respondents.
Sampling Size: The sample size will be taken for this study is 130.
Tools for Analysis: Percentage Analysis, Weighted Average Method, Chi-Square Test.
DATA ANALYSIS & INTERPRETATION
Table-1: Awareness about Organizational Performance Appraisal System
S. No. Opinion Respondents Percentage

1 Fully aware 92 70.76
2 Partially aware 26 20
3 Not all aware 12 9.23
Total 130 100
Inference: From the above table, it is revealed that 70.76% of the employees are fully aware about the organization performance
appraisal, 20% of employees are partially aware about the organization performance appraisal,9.23% are not all aware about
organization performance appraisal.
Table-2: Basis of Performance Appraisal

1 Quality 94 72.30
2 Target 19 14.61
3 Both 17 13.07
Total 130 100
Inference: From the above table, it is revealed that 72.30% of the employees feel that basis of appraisal is quality, 14.61 % of the
employees feel that basis of appraisal is target, 13.07% of the employees feel that basis of appraisal is both quality and target.
Table-3: Periodicity of Appraising

1 Quarterly 15 11.53
2 Annually 97 74.65
3 half yearly 18 13.84
Total 130 100
Inference: From the above table, it is revealed that 11.53% of employees are interested towards half-yearly appraisals, 74.65% of
the employees are interested towards annual appraisals, and 13.84% of the employees like their performance should be appraised
quarterly.
Table-4: Employees Roles and Responsibilities

1 Strongly Agree 87 66.92
2 Agree 13 10
3 Neutral 9 6.92
4 Disagree 14 10.76
5 Strongly Disagree 7 5.38
Total 130 100
Inference: From the above table, it is revealed that 66.925 of the employees strongly agree that their roles & responsibilities are
clearly defined, 10% of the employees agree that their roles & responsibilities are moderately defined.
HYPOTHESIS TESTING
Chi-Square Test:
H0 = The employees roles and responsibilities are not defined.

H1 = The employees roles and responsibilities are clearly defined.
Chi2 = ∑𝑛𝑖=0(𝑂𝑖 − 𝐸𝑖)/𝐸𝑖
Where Oi = Observed frequency; Ei = Estimated frequency.
Then we apply chi square test for the above question, the following table can be framed based on the observed frequencies and
estimated frequencies.
Table-5
Oi Ei Oi-Ei (Oi-Ei)2 (Oi-Ei)2/Ei
87 26 61 3721 143.11
13 26 -13 169 6.5
9 26 -17 289 11.11
14 26 -12 144 5.53
7 26 -19 361 13.8
Total 180.15
In the above table, Ei = 130/5,
The calculated value of Chi2 = 180.15,
Significant value = 5%,
Degree of freedom = n-1 = 5-1 = 4,
The value of Chi2 for 4 degrees of freedom at 5% level of significant is 9.4888.
As the calculated value of Chi2 is greater than the table value of Chi2, the result does not support the hypothesis. Hence, we regret
the null hypothesis.
Inference: It infers that employees agreed their roles and responsibilities are clearly defined.
Table-6: Appraisal System Facilitates for Employee’s Career / Future
S. No. Opinion Respondents Percentage (%)

1 To a great extent 107 82.30
2 To some extent 23 17.69
Total 130 100
Inference: From the above table, it is revealed that 82.30% of the employees feel that performance appraisal is useful for career
growth and learning largely, 17.69% of the employees feel that performance appraisal is useful for career growth & learning to a
moderate extent.
Table-7: Objectives of Performance Appraisal

1 For rewards 13 10
2 For career planning & development 72 55.38
3 To set targets 14 10.76
4 To review performance 31 23.84
Total 130 100
Inference: From the above table, it is revealed that 10% of the employees feel that objective of the performance appraisal is for
rewards, 55.38% of the employees feel that performance appraisal is for career planning & development, 10.76% of the
employees feel that performance appraisal is done to set targets, 23.84% of the employees feel that appraisal is done in order to
review the performance.
Table-8: Performance Appraisal Distinguishes Performers & Non-performers

1 Strongly Agree 7 5.38
2 Agree 47 36.15
3 Neutral 11 8.46
4 Disagree 52 40
5 Strongly Disagree 13 10
Total 130 100
Inference: From the above table, it is revealed that 5.38% of the employees ‘strongly agree’ that performance appraisal system
distinguishes performers & non performers, 36.15% of the employees ‘agree’ that performance appraisal system distinguishes
performers & non performers, 8.46% of the employees are neutral, 40% of the employees ‘disagree’, 10% of the employees
‘strongly disagree’ that performance appraisal distinguishes performers & non performers.
Table-9: Appraisal Helps to Discover the Potential in Employees
S. no Opinion Respondents Percentage

1 Strongly Agree 52 40
2 Agree 22 16.92
3 Neutral 18 13.84
4 Disagree 32 24.61
Total 130 100
Inference: From the above table, it is revealed that 51.53% of the employees ‘strongly agree’ that appraisal system helps to
discover potentiality of employees, 16.92% of the employees ‘agree’ that appraisal system helps to discover potentiality of
employees, 13.07% of the employees are neutral, 13.84% of the employees ‘disagree’, 4.61% of the employees ‘strongly
disagree’ that appraisal system helps to discover potentiality of employees.
Weighted Average Method:
The general formula for Weighted Average Calculation:
Weighted Average = (X1W1+X2W2…+XnWn) / (W1+W2…+Wn) = ∑i = 1 to n

(Xi Wi) / ∑I = 1 to nWi
By giving the ranks to the number of respondents, we get the table as:
Table-10
S. No. Opinion Scaling (X) Respondents(w)

2 Agree 3 22
3 Neutral 4 18
4 Disagree 2 32
Total 130
Therefore from the above table:
Weighted average= (1*52) + (3*22) + (4*18) + (2*32) + (5*6)/130

= 284/130
= 2.18
In the above table, the rank 2 corresponds to the response “Disagree”.
Inference: So we can say that appraisal system is helping the employees to discover their potential in GMR Infrastructure limited.
Table-11: Performance Appraisal Communicated to Employees

1 Written form 18 13.84
2 Oral form 25 19.23
3 Open communication 87 66.92
Total 130 100
Inference: From the above table, it is revealed that 13.84% of the employees feel that their performance should be communicated
to them in a written form, 19.23% of the employees feel that their performance to be communicated in oral form, 66.92% of the
employees need open communication about their performance.
Table-12: Kind of Counseling Occur in an Organization
S. No.
Opinion Respondents Percentage
1 Formal 97 74.61
2 Informal 33 25.38
Total 130 100
Inference: From the above table, it is revealed that 74.61% of the employees feel that counseling in an organization should be of
formal, 25.38% of the employees feel that counseling in an organization should be of informal.
Table-13: Employees Discussion about Their Performance with Superiors

1 Frequently 84 64.6
2 Sometimes 26 20
3 Rarely 13 10
4 Never 7 5.38
Total 130 100
Inference: From the above table, it is revealed that 64.6% of the employees frequently discuss about their performance with
superiors, 20% of the employees discuss about their performance with superiors ‘sometimes’, 10% of the employees rarely
discuss about their performance, 5.38% of the employees ‘never’ discuss about their performance with superiors.
Table-14: Training & Development Programs Improve the Quality of Employees
S.No. Opinion Respondents Percentage

2 Agree 17 13.07
3 Neutral 25 19
4 Disagree 22 16.92
Total 130 100
Inference: From the above table, it is revealed that 68.46% of the employees ‘strongly agree’ that training & development
programs improve the quality of employees, 13.07% of the employees ‘agree’ that that training & development programs improve
the quality of employees, 9.23% of the employees are neutral, 6.15% of the employees ‘disagree’, 3.07% of the employees
‘strongly disagree’ that training & development programs improve the quality of employees.
Weighted Average Method:
The general formula for Weighted Average Calculation:
Weighted Average = (X1W1+X2W2…+XnWn) / (W1+W2…+Wn) = ∑i = 1 to n (Xi Wi) / ∑i=1 to n Wi
By giving the ranks to the number of respondents, we get the following table.
Table-15
S. No. Opinion Scaling (x) Respondents(w)

2 Agree 5 17
3 Neutral 2 25
4 Disagree 3 22
Total 130
Therefore from the above table,
Weighted average = (1*50) + (5*17) + (2*25) + (3*22) + (4*16)/130

= 315/130
= 2.42
From the above table, Rank 2 correspond to the response “Neutral”.
Inference: From the above table it is inferred that training & development programs improve the quality of the employees in
GMR Infrastructure limited.
Table-16: Employees are given Chance to Comment on what they Have Been Apprised

1 Yes 63 48
2 No 67 51
Total 130 100
Inference: From the above table, it is revealed that 48% of the employees are given chance to comment on how they have been
appraised, 52% of the employees feel that they are not given chance to comment.
Table-17: Employees are Getting Necessary Feedback regarding their Performance
S. No. Opinion Respondents Percentage (%)

1 Yes 51 39
2 No 79 61
Total 130 100
Inference: From the above table, it is revealed 77.69% of the employees are getting necessary feedback regarding their
performance, 22.30% of the employees are not getting necessary feedback about their performance.
Table-18: Additions are made to be Existing Performance Appraisal System

1 Yes 76 58
2 No 54 42
Total 130 100
Inference: From the above table, it is revealed that 58% of the employees feel that additions are to be made for existing
performance appraisal system, 42% of the employees do not need any additions for the existing performance appraisal system.
FINDINGS
 It is revealed that 66.92% of the respondents strongly agreed that their roles & responsibilities are clearly defined by the
management.
 It is revealed that 36% of the respondents agreed that present performance appraisal of GMR Infrastructure limited
distinguishes performers & nonperformers.
 Most of the respondents i.e., 40% felt that the performance appraisal system help them to discover their potential and
enables to know their shortcomings.
 It is revealed that 48% of the respondents are given chance to comment on what they have been appraised.
 39% of the respondents in GMR Infrastructure limited are getting necessary feedback from time to time regarding their
performance.
 It is revealed that 58% of the respondents felt hat management has to made additions to the existing performance
appraisal system.
SUGGESTIONS
 The organization should adopt best practices in performance appraisal system that distinguishes performers and non-
performers.
 Organization should need to conduct several sessions on performance appraisal programs to get awareness in the
employees.
 The organization should implement proper reward system to motivate employees and to improve their performance.
 Most of the employees are not given chance to comment on what they have been appraised. So the organization has to
give freedom to the employees to express their opinions regarding the appraisal system.
CONCLUSIONS
Performance appraisal system will be effective only when the appraiser realizes that his appraisal is the basis through which an
organization functions effectively. Performance appraisal acts as a bridge between the management and employees. The
organization adopts best practices in performance appraisal to motivate the employees and to improve their performance.
REFERENCES
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*****
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Volume: 2, Number: 1, January–March’ 2013 ISSN (P):2279-0950, (O):2279-0969

EMPLOYEE WELFARE IN SINGARENI COLLIERIES COMPANY LIMITED: A STUDY

NEED FOR WELFARE IN COAL INDUSTRY

1Principal, Visakha Institute of Management Science, Andhra Pradesh, India, raobhv@yahoo.co.in

Table–1: Scholarships Granted between 2002-03 and 2009-10

SPORTS AND RECREATION

CONSUMER COOPERATIVE STORES

CO-OPERATIVE CREDIT SOCIETIES

SINGARENI SEVA SAMITHI

SPECIAL WELFARE AMENITIES PROGRAM (SWAP)

INCULCATING HEALTHY PRACTICES AND HABITS

9. Annual reports of SCCL from 2002-03 to 2009-10.

10. HRD Bulletins of SCCL.

11. Retrieved from www.scclmines.com

FOR PAPER SUBMISSION & CLARIFICATION OR SUGGESTION, EMAIL US @:

GREEN HRD PRACTICES AND INNOVATIVE HRD SKILLS

Green HRD, Employee, Benefits, Planning, Knowledge, Performance etc.

STAFFING & RECRUITMENT

3Director, Bharati Vidyapeeth University BVIMR, New Delhi, India, drnayaknitin007@gmail.com

NEW HIRE PLANNING

THREE IMPORTANT STEPS OF SAFETY MENTORING PROGRAM

TRANSFERRING SENIOR’S KNOWLEDGE

The ‘Stratos Forum’

Brain Storming Workshops

SUPPORTING PROFESSIONAL DEVELOPMENT

ORGANIZATIONAL SUPPORT STRUCTURE

ORGANIZATIONAL TRAINING & DEVELOPMENT PROGRAM

MOTIVATION BY PERSONAL GOALS

YOUNG PROFESSIONALS GROUP

BENEFITS AND COMPENSATION

BENEFITS OF NOT FOR PROFIT

CELEBRATING PROFIT EQUALLY

EMPLOYEE INITIATED EVENTS

SPORTS AND PASTIMES

HEALTH AND WELLNESS TEAM

Many reputed companies indulge in:

GREEN IDEAS COMMITTEE

VOLUNTARY MATCHING PROGRAMS

 Calgary Corporate Challenge,

SUPPORTING EMPLOYEE VALUES

REWARDS AND RECOGNITION

INTEGRATING COMPETENCY WITH TALENT MANAGEMENT: GMR EXPERIENCE

Competency, Talent Management, GMR Experience, Nurturing Talent etc.

TALENT MANAGEMENT AS STRATEGIC TOOL

TALENT MANAGEMENT PROCESS WITH LINK TO COMPETENCY

TALENT MANAGEMENT PRACTICES - GMR EXPERIENCE

Potential – Performance Assessment Matrix Tool

Potential and Performance Scale

Chart-1: Potential – Performance Matrix Grid

Sources: Authors Compilation

The performance is classified as High, Medium or Low on the following criteria:

i) 3 performance ratings either FEE/ EE or in combination - High Performance,

The Talent Review Process in GMR undergoes the following stages:

Integrating Core Competency with Talent Management Practices:

i) Lead self : Personal Effectiveness, Stakeholder focus, Networking,

Report Preparation for Review:

CHALLENGES AND ISSUES FOR EFFECTIVE TALENT MANAGEMENT PRACTICES

1. Creating Competitive environment with universal and individual best practices.