DIFFERENCE BETWEEN FORMAL AND INFORMAL

SECTOR

Point Of Comparison Formal Organisation Informal Organisation

Origin Created deliberately Arise spontaneously

Nature Planned and official Unplanned and official

Size Large Small

Continuity Stable Unstable and dynamic

Focus Build around jobs Build around people and their

roles
PROBLEMS RELATED TO UNORGANISED
SECTOR
UNORGANISED CONSTRUCTION
SECTOR
IMPORTANCE OF HUMAN RESOURCE
MANAGEMENT IN UNORGANISED CONSTRUCTION
SECTOR
PRESENT STATE
OF THE INDIAN CONSTRUCTION
INDUSTRY
● Human Resource Management is still at a nascent
stage in the construction sector.
● India is expected to reach 16.5% of growth i.e. INR
42,127 billion in 2022
● Shortage of skilled workforce.
● The second-largest recipient of FDI in India.
● Less Return on Investment.
SOME FACTS AND FIGURES
ROLE OF CONSTRUCTION SECTOR
TOWARDS GROSS DOMESTIC
PRODUCT (GDP) CONTRIBUTION
Comparison of GDP contribution between the Construction
Sectors and various other sectors
Contribution of Gross Domestic Product(GDP) by
Construction Sectors
Contribution of Gross Fixed Capital Formation (GFCF)
by Construction Sector and it’s effects in the
economy
 IN DEPTH

AVERAGE OF TOTAL LABOUR WORKFORCE

Particulars Salaried Employees Contract Casual

Average of total labour workforce workers workers

This table depicts the share of

Rural 68.6 51.3 92.6
construction workers in different statuses,
including wage/salaried employees,
contract workers, and casual workers, in Urban 64.1 71.1 92.0
both rural and urban locations. It is also
believed that over 93 percent of casual
employees do not have a formalized Total 66.1 68.4 92.5
working contract, implying more
informality among them.
COMPARISON OF TOTAL EMPLOYMENT IN 2011-12 TO
2020 -21
States Share in Total States Share in total

Uttar Pradesh 17.9 Uttar Pradesh 18.8

Rajasthan 10.5 Rajasthan 11.0

Gujrat 10.1 Gujrat 15.8

West Bengal 8.7 West Bengal 9.9

Tamil Nadu 8.2 Tamil Nadu 8.8

Share in 5 states 55.2 Share in 5 states 64.3

REGISTERED WORKFORCE IN CONSTRUCTION
INDUSTRY AND WORKFORCE NOT UNDER
SOCIAL SECURITY SCHEME
Registered workers of constuction sectors across various states In India
Registered and Migrant
Workforce
Initiatives implemented by the government

● RAJIV GANDHI SHRAMIK KALYAN YOJANA

● PMKVY (PRADHAN MANTRI KAUSHAL

VIKAS YOJNA)

● NATIONAL MATERNITY BENEFIT SCHEME

(NMBS)
● Training and Employbility
 Recommendations for Corrective Measures to
be taken by the Construction sector to
improve HR Development

● More Intensive research is needed in this field

● Total Quality Management
● Proper Training and development