business sustainability: role for hrm with · pdf fileprimax international journal of human...

Primax International Journal of Human Resources ISSN. 2348-0483

Vol No. II Issue No. 1 July- December issue 2014

BUSINESS SUSTAINABILITY: ROLE FOR HRM WITH SPECIAL REFERENCE TALENT ACQUISITION IN SMEs

Vasantha Lakshmi.R1 Hanuman S Kennedy2

Abstract

The effectiveness of talents in an organization plays a very significant role in the organizational performance which in turn influences the sustainability of the firm. Talents Acquisition is the most significant function which influences all other functions in the organization. The acquisition of the right talents and retention of such talents are major challenges for SMEs. This paper brings out the various problems and the practices for acquisition & retention in the Small Enterprises through cases of small companies and a theoretical framework for SMEs to enhance the effectiveness of the acquisition of talents process. Key words: Human Resource Management; Acquisition of talents; Retention of talents, Business sustainability, HRM in SMEs

Introduction

The Small and Medium Enterprises (SMEs) are of key importance to the Indian economy. They

contributed 17% to the nation’s GDP and employed 40% of Indian work force (ET June9, 14). It

is the second largest work force after the Agricultural sector in India. The scenario in Karnataka,

there is about 10.5 lakh micro, small and medium enterprises in Karnataka. These industries

provide jobs to nearly 250 lakh people with 62 lakh in registered sector. The SME sector in

Karnataka produces about 6000 items (KASSIA report, July 2014). These numbers are very

encouraging and fortunately, the current pro business development initiation from both the state

and central Govt. clearly highlights the move towards Industrial development of our country.

The business friendly environment creation, Invitation for foreign direct investments for

manufacturing and the subsequent new revised SME policy will enable the SMEs to contribute

progressively to the economic development of the country. The Contribution of small and

medium enterprises to the country's gross domestic product (GDP) is expected to increase to

22% by 2020. (Business Standard 27 Sept 2014) At present, the fundamental drivers are in the

right pace for the Small industries development. But, the elements of external environment are

not the only determinant for the firms’ performance. This depends on various internal elements

as well. One of the most important internal elements for firms’ performance is the Human

Resources, that is the Talents. Acquisition of right talents at the right time and the retention of

such talents are very significant for the firms in SME sector.

1. Programme Director, IBMT 2 . Associate Professor, Christ University



Purpose of this study

The purpose of this paper is to bring out the various problems and the practices in talent

acquisition & retention for the Small Enterprises and to prepare a theoretical framework for

SMEs to enhance the effectiveness of the process talent acquisition.

Method used for the study

This study is based on the Case Study of different small enterprises engaged in producing Anti

Depressant drug (Pharmaceutical company), Auto parts, Restaurant and another an educational

consultancy in Bangalore. Data collected through personal interview with the owners and a few

employees of the respective Company.

Business sustainability – Role for HRM

Business Sustainability, i.e., sustainability of the firm in this business world depends on various

factors from both internal & external environment. This present world of business can be

described as - volatile, uncertain, borderless digital world. In this complex business world, there

are many dynamic forces from different directions from the environment acting on the firm. The

external forces collectively represented by the five major ones - Social, Cultural, Economic,

Environment & Political. The change in the intensity of these forces are driven by yet another

force- TECHNOLOGY. These external forces along with the internal forces with different

levels of intensity create turbulence in the firm. The counter forces in the form of different

creative business strategies are applied by the firm in order to seek sustainability. (Vasantha &

Kennedy, 2013). Creative minds generate such innovative and creative business strategies. They

are the talents of the firm. Hence, effective management of such talents signifies the role of

HRM in business sustainability. The acquisition of such talents and retaining of such talents are

very significant functions of HRM for a firm’s sustainability.

Acquisition of Talents

73% CEO s in India spend more than one-fourth of their time directly on talent related activities.

While 68% acknowledge that this time has increased in recent years, 79% also affirm that this

focus will only increase further next year. This indicates a relevant change in the way

organizations are functioning today (monsterindia.com survey 2011). In today’s business

environment, the growth and development of any organization, be it an MNC or a SME is

directly proportional to the employee’s growth. Therefore, talent management can impact any

organization’s bottom line and growth. SMEs are struggling to find skilled workers especially at



middle level positions. They are finding it to identify, who is their real candidate with the right

skills, how their business model can get the quality cost scale balance right, and most

importantly how they can retain their key talent. (Business Standard 27 Sept 2014)

Acquiring talents is not just recruiting, it is an ongoing cycle of processes related to attracting,

sourcing, recruiting, and hiring employees, based on the requirements of the organizations, be it

a particular set of skills or behavior.

The main elements that comprise talent acquisition are-

employer branding, outreach, networking, Relationship building with potential candidate

communities and continuously building and enhancing the talent pool for the organization.

(Geremy Cepin)

The published reports states that the Talent Acquisition in SMEs is the top most challenge

among other challenges. As per the Hire right’s recently released report on Employment

Screening Benchmarking, the acquisition and retention of talents are the major business

challenges for the organizations as shown in the fig 1. The Answer during SME world’s

interview with R.U Srinivas, CEO, Caliber Point, about problems of Indian SMEs shown in the

fig 2 (Source: HireRight survey 2013)

Figure 1

Figure 2

FIGURE - 2 FIGURE - 1



The problems in acquisition of talents given below are based on the responses of the owner

of the company during their interview for the case study–

Finding the right talent at the right time

The employability of majority of the fresh graduates from colleges both technical and non

technical is not up to the standards expected by the employer. It is like searching for a (talent)

needle in a (large pool of graduates coming out of the universities every year) haystack.

At the junior management level, the issue is of finding a trained person with required skills is

more. The gap between demand and supply of required skills is huge. In companies they train

most of the lower level staff in the organization itself. This on-the-job training is very expensive

to the company. Also, most people are not educated enough to be trainable further. At higher

levels, the issues are of affordability.

Next, because of growth of MNCs in IT, ITES and financial services, in middle level, the

problem has been the mismatch of expectations and reality in terms of work and compensation.

The ambitions are huge with very less experience and expertise. Attracting talents towards the

company is a challenge because of Lack of popularity of the company i.e., the brand image &

value in that respective sector, nominal amount spent on advertising/ promotion, lack of

competent compensation packages, fewer opportunities & the image of small size is the biggest

hurdle to attract the talent.

Selection and Recruitment

A bad hire has a greater negative impact in SMEs. A new hire at a small company represents a

much larger percentage of the workforce than one at a large scale company having more

employees. In such cases companies also suffer greater proportionate financial and productivity

loss from having to re-recruit, re-hire and re-train in the aftermath of a bad hire.

Full time HR professional

Adding to these, in this sector, usually the owner or the line manager takes charge of HRM. Even

though there is a necessity felt by the owners, full time professionals are not taken in most of the

SMEs. In the absence of an efficient HR system, owner/ line manager spend their significant

time on HR administration.



Attrition of Talents in SMEs

The problem of attrition is not only for the SME sector; around the world all companies are

facing this problem. The statistics given by the Hay group study is as follows-

One in four employees in the organized sector in India is set to switch jobs, the highest

attrition rate globally, according to a Hay Group study. The series of fresh investments

planned across sectors could raise demand for talent even as economic conditions remain

moderate. Raising concerns are on employee engagement and retention. (Economic Times,

Jun7, 2013)

Causes for Attrition as per the responses given by the Owner of company during their

interview for the case study -

Small companies have become transit camps because they are the primary source of

employment opportunities for new entrants. This sector, for many reasons, invariably

compromises and recruits untrained workers who are then trained on the job. Quite often

once the workers reach a certain level of skill they are absorbed by the larger companies.

Consequently, the small companies are in a constant process of training raw hands and

being unable to retain skilled workers. One person (talent) who leaves the company will

attract many more from his team. Thus attrition percentage increases.

The other most quoted reasons for attrition as per the SMEs survey are (Human capital,

Feb14) –

Insufficient remuneration and employee benefits paid to employee by his employer.

Mismatch of job profile.

Job stress and work-life imbalances.

Entering of new companies and sectors in to the market.

Lack of authority provided to accomplish ones task.

Monotony of job.

Lack of proper facilities provided by employer

Lack of proper environment.

Poor concern about employees by their employer.

Poor promotion policies or lack of promotion for long time.



Practices followed in Acquisition of talents as seen in the case studied:

- As a matter of policy, more than 60% of the employees have recruited through employees’

references or internal job posting.

- Company’s web presence by having updated website, using SCOs and using tools like

LinkedIn, Twitter, and Face book to create brand awareness for the company to attract talent.

- To create awareness about the company and their products, short term projects and

internships to students are offered. With this the students can get opportunity to put their

hands on in the live projects, which creates interest in them to take up job options in the

company itself.

- A wrong hire proved to cost more in this sector. Hence, in order to avoid a wrong hire, the

screening process made short but precise to assess the skills and attitude required for the

position. Avoided all types of theoretical questions in the interview and the talent is assessed

based on the standard tests like competency, behavioral and psychometric tests.

Practices followed to minimize attrition of talents as per the responses of the interview -

There are cases, where some of their employees are working since inception and a few are here

in this company since last 20 years. The common reasons to stick on to the same company as

per their opinion listed in the order of most to least are --

Freedom in terms of expression and experimentation.

The hygienic factors like the work environment & Work place

Commitment & Loyalty factor

Job satisfaction

The HR practices with reference to retention as per the cases studies, Performance based

compensation used for higher level positions. They have the concept of Co-ownership which

encouraged leveraging the talent of the people by making the right balances of power between

employees and employers. At lower levels the companies have taken the attrition as usual. No

other specific strategy or practice seen towards retention of talents in the company.

Current HR trends with respect to acquisition and retention of talent as per Deloitte’s

Human Capital Trends 2014, (Josh Bersin)

The global economic growth has created a new level of competition; the companies are more

focusing on their retention and engagement of their employees rather than concentrating on cost

reduction. Technology, the principal driver of business continues to connect all people, places



and products and making the data as new currency. Talent, skills, and capability needs become

global and integrated capability Development Replaces Training. Talent Mobility and Career

Development are considered seriously and Talent Analytics Comes to Front of the Stage. As per

the trend, it is clear that the economy will grow, employees will be in charge, and HR's role in

business success will be more important than ever.

Theoretical Framework for Talent acquisition in SMEs

Keeping in mind, the problems, practices of talent acquisition and the growing importance of the

right talent for companies, a theoretical framework designed to enhance the effectiveness of the

process.

Talent acquisition is a strategic approach to identify, attract, and take them on board the right

talent. Organizations need right talents to efficiently and effectively meet dynamic business

needs. Talent acquisition is not just recruiting. The recruiting tends to focus mostly on immediate

hiring needs by just posting a requisition and extending an offer. Talent Acquisition is more than

these. It includes attracting the talents, pooling the talents, selecting and recruiting the talents and

taking them on board.

This framework for talent acquisition will help the SMEs in framing their policies, practices and

strategies to hire right talents. The application of this framework will enhance the effectiveness

of the process. The theoretical framework for talent acquisition is as shown in the following

fig3.

Figure 3: Framework for Talents Acquisition



This theoretical framework is designed based on the following concepts –

- Organizational Structure

- Span of Control (Graiciunas formula)

- Competitive Advantage of Human Capital

The figure 4a, 4b & 4c represents the concepts used

in the framework for talent acquisition and also

highlights area of concern for SMEs with respect to

talent acquisition and retention. The triangle in the

figure 4a represents the Organizational structure,

The formula in 4b gives the span of control i.e., the

number of subordinates reporting to the manager

and the rectangular area with the 4–quadrants as in

fig 4c, represents, the Competitive Advantage of

Human Capital highlighting the job positions

significant for SMEs. The Fig 5 gives the

theoretical framework for Talent Acquisition in

SMEs. This gives the complete picture of different

processes involved in the talent acquisition.

Attracting the required talents, pooling the specific

talents, selection and recruitment of the talents and

on boarding of such talents are the different

processes.

The Span of control provides the number of people

reporting to the manager to the senior or to the

middle level manager. This span of control includes

the relationship of the people who directly report,

the cross relationship of the people report to

particular manager. Hence, in order to keep the

productivity standard at optimum level in the

organization, the span of control for managers

should be maintained. Based on the studies

Figure4a: Organization Structure

Figure4b: Graiciunas formula



conducted, HL ≤ 6; ML≤ 20. In recent studies

(HBR April 2012) it is highlighted that the span of

control has doubled over last 2 decades. Current

trend is for SL positions the number of immediate

reports are gone up to 12.

Using the concept of CA of human capital, the Job descriptions can be derived and the concept

organizational structure will provide job position level in the organization. This information can

be strategically used to attract the talent and pool the interested talents. At the same time, using

these concepts the Knowledge, Skills, Attitude essential for each position and the roles and

responsibility along with the expected deliverables can also be derived. These can be effectively

incorporated for the recruitment and on boarding processes.

As per this framework, for any given organization one can identify their functions/ department

with the following chart1 – FUNCTIONS/

DEPARTMENT: ……………..

(S-L/ U-L) BLOCK 1

(S-H/ U-L) BLOCK 2

(S-L/ U-H) BLOCK 3

(S-H/ U-H) BLOCK 4

TOTAL

LEVELS OF JOB POSITION

H / M / L

H / M / L

H / M / L

H / M / L

H / M / L

NO OF POSITIONS PLANNED

NO OF POSITIONS FILLED

JOB DESCRIPTION

DELEVERABLES

KNOWLEDGE; SKILLS;

ATTITUDE ESSENTIAL

Chart 1: Details of Functions/ Department as per the Framework shown in Fig3

4c: Competitive Advantage of



To begin with, keeping the similar format in the excel sheet/ spread sheet, can be expanded to the

number of positions in each level, as shown in the above table. Further this can include, positions

filled, not filled, the job descriptions with KSA, preferences, compensation for all the levels in

different departments. This can also be used for HR planning including replacement chart and

succession planning.

SMEs are more cautious about the employees at the middle level, which contains employee types

of all the blocks(S-H/U-H; S-H/U-L; S-L/U-H; S-L/U-L) & high level, in the (S-H/ U-L) & (S-L/

U-H) blocks.

Junior level attrition is taken as usual. But they have the necessary arrangements made for

regular supply of manpower to this level. Most of them are managing by having tie ups with

colleges and recruiting apprentice trainees under govt. scheme.

The employees in the middle level and high level of (S-H/ U-L); (S-L/ U-H) are considered for

retention and development activities as well. The block (S-L/ U-L) are may be managed by

outsourcing as well depending up on the type of expertise required.

The HR interventions are different for different blocks and levels in each case. Appropriate

interventions required on case to case basis for effectiveness.

With all these three concepts as shown in the framework, the processes involved in talent

acquisition can be effectively managed.

Conclusion

Every SME has its own history and experience with people who build it and working in it. They

are unique and specific cases; every one of SMEs has a unique set of its HRM needs which can

be identified individually, there are although some common features shared by majority of those

companies. The common problem of talent acquisition and retention can be managed effectively

by having effective HRM practices, aligning with the current trends, adopting latest

technological tools and developing brand to attract the talents. Despite all the issues, the fact is

that the smaller companies are capable of producing extraordinary results, if they have dedicated

empowered and motivated people. (Bhardwaj,, 2014) With the enormous productive potential of

their smaller teams SMEs can overcome the factor of small size with right talents.



Reference

Bhardwaj, Anil. “How empowered people can overcome SME handicaps”, Human Factor,

February 2014, p.14

Cepin, Geremy. “Report on Talent Acquisition”. Koltin Consulting Group, 2012

Neilson, Gary L. and Julie, W “How Many Direct Reports?” HBR April 2012, p.3-9

Shell, Scott and Bohlander, George, “Human Resource Management”, south western Publ., 2009

Urwick, L.F.,“The Manager's Span of Control" Harvard Business Review May-Jun 1956, p37-47

Extract from the Newspapers:

Economic Times June 7, 2014

Economic Times June 9, 2014

Business Standard Sept 27, 2014

Times of India Sept 17, 2014

Web Links:

http://www.hireright.com/blog/2013/04/employers-continue-to-struggle-with-talent-acquisition-

challenges/ ; survey 2013

http://monsterindia.com: People matters study, 2011

http://www.monsterindian.com; White paper, How can SMEs recruit efficiently, 2012

http://blog.orgvue.com/span-of-control-what-is-the-optimum-and-what-are-the-drivers/

http:// www.bersin.com



EMPLOYEE ENGAGEMENT EFFORTS –THE RETENTION STRATEGY

Kanchana.K1

Abstract

In Today’s global challenging and competitive business environment, it becomes a most demanding task for the management of any organization to gain engaged workforce and to retain them, particularly, after the economic downturn that started in 2008. Engaged employees create a sense of loyalty in the competitive business environment and are serve as a brand ambassador of the organization. Employee engagement is the key influencer of employee retention and hence highly engaged workforce show high level of retention to stay in the organization. This article tries to explore a clear understanding about the employee engagement among “New-Age” and diverse workforce. Further this article attempts to measure the engagement level and suggest the HR champions to take EE initiatives accordingly to combat employees’ intention to leave and disengagement. Introduction

In Today’s global challenging and competitive business environment, it becomes a most

demanding task for the management of any organization to gain engaged workforce and to retain

them. To put in more precise words, the economic downturn, i.e., the recession period that

started in 2008, has lead the employers to face the challenges of human capital and uncertain

economy. Employee engagement is a construct beyond a mere commitment, involvement and

satisfaction, which touches almost all facets of human resources. Being this as the fact, if every

part of human resources is not paid attention to and addressed in an appropriate manner and at

the right time, the management cannot receive the full engagement on the part of the employees.

Hence, there must exist a strong two-way relationship and consensus between employer and

employee. The employer should listen to and address the needs and problems of the employees

and in turn the employees will show their strong attachment towards the management of any

organization in terms of higher efficiency and productivity beyond a mere employment

contractual agreement.

For any organization to attain sustained success over their competitors, requires well-

engaged workforce that are more efficient and productive with key talents. Employee retention

can be defined as the effort by an employer to keep desirable workers in order to meet business

objectives. Retention of key workers or key talent is the most critical factor to plan HR

requirements in the years ahead. A highly engaged workforce is a more stable workforce. Today,

labor and talent shortages made the retention problem critically important.

1 Research Scholar, Bharathiyar University, Coimbatore.



Objectives and Scope of the study

The primary objectives and scope of this article is to:

1. Provide an overview of both employee engagement and retention, so that the “New-age” and

diverse workforce will have a clear understanding about what actually engagement mean.

2. Measure and identify the level of engagement and suggest HR champions to take employee

engagement efforts/initiatives accordingly for improving retention.

3. Suggest best innovative solutions to combat employee’s intention to leave and disengagement.

Research studies

Rothbard (2001) classifies engagement into two critical components:1) Attention – the amount of

time one spends thinking about a role and 2) Absorption - getting engrossed in one’s role and

intensity to focus on one’s role. Engaged employees feel a strong emotional bond to the

organization that employs them, which results in higher retention levels and productivity levels

and lower absenteeism (Robinson, 2004). Attention and retention is the function of employee

engagement. High retention of employees is always characterized by a highly engaged workforce

(Talent keepers 2004). Truss et al (2006) defines engagement as “Passion for work”. Ellis and

Sorenson (2007) endorse a two dimensional definition of engagement that defines an engaged

employee as one who 1)knows what to do at work and 2) wants to the work, to increase

productivity. Towers Perin research (2007-2008) shows that engaged employees are more likely

to stay in the organization. Gallup identified that highly engaged employees are showing

absenteeism at an average of 2.7 days per year, compared with disengaged employees taking an

average of 6.2 days per year. Development Dimension International (DDI) reported that

absenteeism in low engagement teams hovered around 8 %, while high engagement teams shows

4.1 %. The strong correlation between engagement and retention is well understood. According

to BlessingWhite’s Employee Engagement report (2013), “Intent to stay” (Retention) or an

employee’s stated desire to remain with their current employer, is a strong predictor of actual

turnover. It is also an indication of how strongly committed an employee is to their current

employer’s success. Globally, 60% of all employees report that, given the choice, they plan on

remaining with their current organization for the next 12 months. However, this number jumps to

81% among engaged employees but drops to 23% among the disengaged.



Retention vs. Engagement - The Relationship

The relationship between retention and engagement is an interesting one:-

1. Lack of engagement always leads to employee turnover (i.e., reduction in employee retention).

Actually, an employee may be disengaged but because of lack of viable options may remain with

the organization, i.e., is "'deadwood."

2. Highly engaged employees rarely leave the organization. Highly engaged employees may

leave the organization for a variety of reasons such as because of a leader they do not trust or an

opportunity where the work is even more engaging.

3. High retention organizations are always characterized by highly engaged workforces.

LOW HIGH

Fig 1: Measurement of Employee engagement level and the remedy for the consequences

Source: Author’s research

Measure the employee engagement level at regular intervals through

employee surveys

HR champions should think of EE initiatives to

improve employees’ level

of engagement by explaining how

their performance affected the

organization’s productivity, rather than

punishing/firing

POSITIVE NEGAITIVE

Good sign for the

organization’s success and HRs should initiate

for “Sustainable engagement”

May lead to “Workaholics” rather than

engaged workforce

HR champions should think of flexible work practices to

ensure Work-life balance



4. The factors and solutions relating to employee retention are identical to those of engagement.

They are similar but not identical. Training leaders in trust is appropriate for improving both

leadership and engagement, but compensation typically only affects retention. Strategy to promote retention and engagement of employees

To ensure engagement and retention of employees, “The Towers Perrin, 2003” suggested the

following strategy:

Fig 2: Strategy to promote retention and engagement of employees

Source: Working today: Understanding what drives employee engagement, The 2003 Towers Perrin Talent Report.

ATTRACT

• Competitive health care benefits, Competitive base pay, Work-Life balance, Competitive retirement benefits, Career advancement

opportunities, Challenging work, Caliber of co-workers, Pay equal to individual performance, Recognition and Company reputation.

RETAIN

• Career advancement opportunities, Retention of high caliber people, Overall work environment, Development of employee’s skills,

Resources to get the job done, Competitive base pay, Clear goals from superior, Challenging work, Manager inspires enthusiasm and

Overall satisfaction with benefits needed in day-to-day life.

ENGAGE

• Management’s interest in employees well-being, Challenging work, Decision-making authority, Customer orientation, Career

advancement opportunities, Company reputation, Collaboration with co-workers, Resources to get the job done, Input into decision

making and Management vision.

ATTRACTION

RETENTION

ENGAGEMENT



Price Waterhouse Coopers suggested 3 common surveys among employee across their lifetime in the employment, as exhibited below:

Fig 3: 3 Common surveys

Source: Surveys can shore up worker engagement; retention - Kathleen Koster, October 2013

Employee Benefit Nevus

From the elements suggested above, we can analyze what HR professionals do or what are the

best HR’s “Employee Engagement Efforts” that can be implemented to promote the

engagement and retention of the workforce in this 21st century:

Strategic HR Planning

Strategic HR planning helps to manage and direct the human resources towards the

organization’s objectives. Strategically planning will help the organization to meet its current

and future needs of human resources and the step for employee engagement and retention should

begin from the day one of the employee. Management should be strong in choosing the right

person for the right job and strong induction and orientation programme should be given to the

employees. New hires tend to quit the job early due to their inability in meeting expectations. At

such beginning time, management should handhold the employee and connects them with a

buddy and help in assimilating them into the organization and their new role. Hence, the

management should implement an employee selection strategy which involves effective

• Provide a view into the new employee's perspective. Employers have a unique opportunity to shape engagement as the new hire's employment experience begins.

ONBOARDING SURVEY:

• Offers a detailed assessment of which aspects of the employee/ organization relationship drive employee effor, pride and commitment.

ENGAGEMENT SURVEY:

• Provides candid insight into the factors that are driving employee turnover. They can point to organization's strength, as well vulnerabilities.

EXIT SURVEY:



interviewing, job benchmarking, and personality profiling to ensure that new hires are a good fit

for the job. “Bridge the gap” between the employee needs and understanding of the employer.

Financial and Non – financial benefits

Management should motivate the employees through both financial and non-financial

incentives for the good job done. Employees’ performance should be linked with proper reward

and recognition in terms of compensation and other benefits when they perform above and

beyond the expectation towards the organization’s success, to ensure the satisfaction and

intention of employees to stay in the organization. While rewarding for employees good job

done, the management should be mindful about the fact that not all the employees prefer to be

satisfied for their job well done in the same ways. Also, the management should organize

recreational activities like festivities, get-togethers, sports, outing, etc. for bonding with the

organization.

Framing and Developing HR Policies

Both, the policies and procedures communicate the values of the organization and

provide every employee with a consistent process to follow which in turn help the employees to

approach any critical situation with much confidence. HR policies and procedures explain the

employees about the work culture, work methods and other work practices for their smooth

functioning of the task in the work environment. An open and transparent policy should be

focused on employee empowerment.

Job description

A well-written job description helps the employees to understand what is expected of

them actually and sets an employee up for success by outlining their roles, responsibilities and

parameters of their position. Job description shows how an employee’s position contributes to

the mission, goals and objectives of the organization.

Learning, Training and Development programs

Management should make optimum investment in training programs to help the

employees for their personal and professional growth. Liberty, for choosing the own best way of

doing the job must be given to employees, as long as it yields good results without affecting the

organization’s interests and violating organization’s policies. Also, the management should find

steps to increase the employees’ knowledge, skills and abilities to perform their job without any

difficulty or confusion, through appropriate training programs. When the employees’ KSAs (i.e.,



knowledge, skills and abilities) increase, their level of confidence, self-efficacy and commitment

also will increase. Career navigation along with adequate training programs will help the

individual employee to plan and advance in their desired career path, which in turn will increase

the engagement and retention and also decrease, their attrition level. Aashish Singh, VP and

Head – India HR, Sutherland Global Services, tells in his article titled “New-Age Retention

Strategies” to The Times of India (16.04.2014), “Career Ecosystem” is a practice that Indian

companies should strongly emulate as it will help increase retention rates. He further adds that

high performance expectations and monotonous jobs make the employees feel frustrated. Hence,

a well-defined career path with skill development opportunities should be provided by in-house

learning and development teams to reposition employees’ career aspirations. Organizations must

adopt a multi-pronged retention strategy to handle the diverse workforce and make them

engaged. Hence the organizations must look for innovative technologies by providing growth

opportunities.

Two-way communication

A clear and consistent communication of what is expected of employees paves the way

for engaged workforce. Management should listen to the voice of their employees for any matter

that affects their interests in the workplace. Management should respect the employees for their

input and share power with them through participative decision-making which in turn will build

a sense of belongingness thereby increasing their engagement as well. The organization should

encourage communication forums to provide regular feedback to and from very employee,

meetings at regular intervals, conferences, In-house magazines, on-line communications

including discussion boards and blogs by company, employee suggestion schemes, monthly

updates on organization goal, employee satisfaction survey.

Effective performance management and feedback system

Performance management is an on-going and never-ending process where the superior

and subordinate employees work together to plan, monitor, review and direct an employee’s wok

towards the achievement of organizational goal or objective. Effective performance management

system provides constructive feedback on employees’ performance and motivates them to do

their best. Whenever required, plans are established to improve performance and identify skills

and abilities of each employee, so that work assignments build on and reflect an employee’s

strength. Performance management system should be framed in such a way that it identifies



employees for more challenging work. Performance should be reviewed at regular intervals and

same should be communicated to the employees by way of feedback. Feedback system must lead

the management to develop action-oriented plans that are specific, measurable, accountable,

realistic and time-bound (i.e., SMART) to yield the very expected result.

Distinctive Corporate culture with good value system

The organization should hire the right kind of employees who can fit into the culture of

the organization. If an employee is so skilled and very talented, but not fit for the culture of the

organization, then it will not lead to maximum performance or retention. An organization culture

of trust often has higher levels of performance. Organizations with a strong work culture shows

mutual respect and trust by keeping success stories alive. This will surely help to engage

employees and also to baptize new employees. A culture of unfairness and mistrust will lead the

employee to assume negative or withdrawal behavior which will in turn result in absenteeism,

employee theft, feeling of under-appreciation, workplace depression, employee turnover, etc.

“Everyone makes mistakes”, hence instead of penalizing and finger-pointing their mistakes,

management should explain the employees and make them understand how their mistake A

healthy workplace is more holistic and takes into consideration the physical, spiritual,

environmental, intellectual, emotional, occupational and mental health of employees. Wellness in

terms of sufficient and adequate resources or tools to perform their work, better conflict

resolution, better management of workplace diversity by providing the work environment which

is secure and safe from harassment, statutory and non-statutory welfare facilities, job security,

effective grievance handling system, etc. help the management to overcome the problem of

absenteeism, intention to leave and increase the level of engagement and retention.

Employee recognition

Recognize employees for their significant business achievements. Good work of the

employees need to be recognized, congratulated and applauded by the management to drive them

to contribute further towards organization’s success. Management must thank the employees for

their every contribution to make them feel motivated and valued. For example, the organization

can exhibit the employee’s photo along with a short bio with appreciation notes, in the

organization’s website. Employees are filled with feelings and emotions and hence motivation

and recognition are the prime part of employees to engage and continue further in the

organization. Motivate employees and raise morale through recognition letters, profit sharing



schemes, long performance awards, etc. Management should make the employees to understand

the truth that they care about not just the performance, but also them as an individual human-

being.

Conclusion

Employee engagement is a continuous process. Employee engagement efforts followed

by best HR practices are greatly instrumental for high retention rates and in turn for

organization’s success. Employee engagement and retention are the two major HR functions and

has to go hand-in-hand. Green HR should be seriously adopted in all organizations to ensure

environmentally-friendly HR initiatives for greater efficiencies, lower costs and better Employee

engagement and retention.

References

1.Lockwood NR (2007), Leveraging employee engagement for competitive advantage: HR’sstrategic

role, Society for Human Resource Management Quarterly, ¼

2.Macey WH, Schneider B (2008a), The meaning of employee engagementı, Industrial and

Organisational Psychology, 1, 3–30

3.Robinson, D., Perryman S., & Hayday, S. (2004). The drivers of employee engagement

Report 408, Institute for Employment Studies, UK



WORKERS’ STRESS IN HOTEL INDUSTRY

Dr.WRPK Fernando1

Abstract The aim of the study is to identify the level of workers’ stress and it’s causing factors for employees in the

hotel industry. In individual, stress is a habitual part of life and everyone has to endurance with the situation and it is deviation as the result of psychological a physical condition of human life. The research problem of the study was to diagnose the moral with what employees in the hotel industry work. Out of 39901 employees who are working in various levels in the hotel industry, 250 respondents were selected based on random sampling method. The variables were analyzed with the aid of multiple regressions, factor analysis and the Karl person’s coefficient of correlation in tune with the objective of the study. The analysis was carried out by using the software SPPS version 17. The studies found that majority of factors are interrelated. It can be concluded that majority of Stress Related Factors are correlated and Stress Related Factors significantly influence on stress. And stress management is an important issue to be addressed to maximize the performance of the hotel industry in Sri Lanka. Keywords: Workers’ Stress, Work Load, Dissatisfaction, Income and Organizational Commitment

Introduction

Stress is a force of dynamic order in which an individual is confronted with a situation,

demand or environmental factors related to what the individual desires. In new society,

“mentally pressure” is one of the well-known used words today, because the human has to do

necessary work without thinking about psychological and physical rest. In the individual, stress

is a habitual part of life and the outcome of stress is a deviation from the psychological and

physical condition of human life. Normally, everyone has to endurance or cope with the

situation.

Many people have efforts to define the concept of stress. And several theories can be seen

under different views of stress. The first actual scientific investigation of stress is attributed to by

Hans Selye - 1956, who is considered by many to be the “Father of stress” (Steve M Jex., 2002).

In the continuing behavior process of stress the human has to come across three stages such as,

(1). Alarm, (2). Resistance and (3). Exhaustion. (under General Adaptations Syndrome (GAS)

concept – Stages of Stress).Two stages, alarm and exhaustion are harmful to the institute, while

resistance stage is effected to the organization as equilibrium when an individual finds work

proceedings within his control and able use his ability and skill to fulfill the target at most

efficiently and effectively. The Walter B. Cannon theory has explained; if the situation is

1 Senior Lecturer, Department of Commerce and Financial Management, University of Kelaniya, Kelaniya, Sri Lanka



unmanageable, human beings who have to follow flight or fight response. This is not only

relevant to individuals, but the organizations (group of people) as well.

According to McGrath(1976) situations have potential for stress when they demands

which are perceived to be threatening to exceed a person’s capabilities to meet them and where

there are substantial differences, in rewards and cost from meeting versus not meeting the

demand. Nelson et al. (2003) explained that stress is an important topic in organizational

behavior, in part due to the increase in competitive pressures that take a toll on workers and

manager alike. Luthans (2002) has explained that stress is usually thought of in negative terms. It

is thought to be caused by something bad. According to Robbins, “stress is typically discussed

in a negative context and it also has a positive value (2005)”.The consequence of stress is a

deviation from the existing physical and psychological condition of human life. The stress is

regarded as an inevitable consequence of employee functionality. The workers’ stress negatively

affects the routine of employees in an organization. The workers stress should not be denoted as

a problem of the personal alone. The present study is one such an attempt to find the situation in

the hotel industry.

The study revealed level of workers’ stress and it’s causing factors for employees in the

hotel industry. The economic prospects of post –war development in Sri Lanka depend on a few

key industries. The tourism and hotel industry is one of the sectors among them. Furthermore,

this industry is contributing around 2% to Sri Lankan’s gross domestic product (The Central

Bank, 2010). The hotel and tourism industry can be an important source of jobs for the Sri

Lankan society, especially for those that are economically to develop the country. According to

the Sri Lanka Tourism Development Authority (2011), the many significant points can be noted

comparing with previous year such as

- Sri Lanka Tourism has boomed to a new milestone of 855975 arrival in 2011(grew by 4.4%),

the foreign exchange earnings increased from Rs. 65,018 million (increased by 41.4),

- The total room capacity in tourist hotels (graded establishments) was 14653 in 2011, the room

occupancy rate in graded accommodation increased to 77.1% in 2011

- Employment generated in the tourism sector (both direct and indirect) increased by 5%

(138685) in 2011.

The hotel industry is important in different ways; it seems that there are discernible

services among others. The study has considered about employees of the industry.



Statement of the Problem

The hotel/tourism can be an important source of jobs for the society, especially for those

that are economically important to develop the country. Even though, comparatively years from

2010 to 2011, the hotel and restaurants sector recorded minus growth from 39.8% to 26.4 %

respectively. The hotel industry is contributing around 0.6 % to Sri Lankan’s gross domestic

product (The Central Bank, 2011). And Sri Lankan hotel/ tourism sector is suffering some

shortage in qualified and trained employees for job opportunities. The research problem of the

study was related to workers’ mental pressure. Jobs in the hotel/tourism industry are frequently

low-paying and seasonal and often offer limited benefits. In addition, job environment problem,

job insecurity, cultural problem, effectiveness of stakeholders and a sense of feeling

undervalued. And also, particularly where tourism strategies are ineffectual, local community

may have to pay for tourism marketing and infrastructure through higher expensive. Thus the

present study is making an examination regarding the major causes behind the occupational

stress of the workers in the hotel the industry. However, Sri Lankan researchers did not much

study so far above stress concern as well as workers’ stress in the hotel industry. Thus, this study

is an attempted to fill this vacuum in the hotel industry.

Literature Review

The relevant literature pertaining to the present study has been abstracted to provide the

background of variables, to evaluate the significance of this study.

Goldman et.al. (1994) discussed the source for conducting study for tourism activities and

stresses the need for early planning in tourism activities. The study has recommended

communities develop a six-step tourism strategy based on business, social and environmental

components.

According to Williams Stephen and Cooper Cary L. (1998), the study of United

Kingdom, occupational stress was hindered. The outcome scales measure with job satisfaction,

organizational satisfaction, organizational security, work environment, organizational

commitment, anxiety depression, resilience, worry, physical symptoms, work load and

exhaustion.

Ronald and Burke (1976) found that there are some occupations that are reporting worse

than average scores on each of the factors named physical health, psychological well – being and

job satisfaction. Further they have explained the relationship between occupational stress and job



satisfaction. The occupational stress index was significantly related to the job satisfaction index –

the greater the stress, the lower the satisfaction.

Chandraiah, et al. (2003) investigated the effect of occupational stress and job satisfaction

among employees of different age groups in Calcutta City, India. The findings of the study

revealed that there was positive relationship between higher levels of job stress and reduced job

satisfaction among employees of 25-35 years of age than their counterparts in the middle age

(36-45 years) and the old age groups (46-55years). The study found that the age negatively

correlated with occupational stress and positively correlated with job satisfaction.

Oi-Ling Siu (1996), in his study reviews the different conceptualizations of teacher stress

and burnout, and agrees that interactional approach proposed by Dunham (1992) is more

constructive. The author identified policy changes that can potentially reduce levels of stress

among Hong Kong teachers. Specifically, unresolved issues relating to teacher stress in the light

of the reports of the Education Commission were discussed.

Conceptual Framework

Research Questions

The research questions of the study stemming from the nature of the problem stated

above are as follows.

What are the characteristics that influence on occupational stress among the workers in the

hotel industry of Sri Lanka?

What is the Maximum level of occupational stress in the hotel industry of Sri Lanka?

Variables -Independent

Dissatisfaction

Organizational Commitment

Work Load

Work Environment

Variable- Dependent

Occupational Stress

Workers’ Services



What is the minimum level of stress to reduce service quality of workers in the hotel industry

of Sri Lanka?

What are the major characteristics to identify groups of occupational stress among the

workers in the hotel industry of Sri Lanka?

Objectives

The objectives of the study are;

To find out the level of stress among the workers in the hotel industry of Sri Lanka

To identify priority of factors (variables) causing stress among the workers in the hotel

industry of Sri Lanka.

To find out relationship between the various dimensions of workers stress related variables.

To find out groups of workers based on similar characters of stress in the hotel industry.

Hypotheses

H1 = There is a positive relationship between the degree of work load and the workers stress

related variables in the hotel industry of Sri Lanka.

H2 = There is a significant relationship between the degree of work load and the organizational

commitment related variables in the hotel industry of Sri Lanka.

Methodology

Sample:

The population of the study consists of the workers in the hotel industry of Sri Lanka.

39901 employees are working in various levels of position named non executive, skilled and

semi skilled workers in the hotel industry of Sri Lanka (Sri Lanka Tourism Development

Authority, Annual Statistics Report, 2011). A sample of 250 workers was chosen for the study

based on simple random technique.

Procedure:

The required data for this investigation were collected through questionnaire by using the

five point Likert scale. Total score on this scale was considered for the assessment of workers’

stress totally. More the score on this scale indicates more stress.

Statistical Tools:

The variables were analyzed by using the Multiple Regression, Factor Analysis and the

Karl person’s coefficient of correlation in tune with the objective of the study. The analysis was



carried out by using the software SPPS version 17. And also, the Karl person’s coefficient of

correlation was applied for testing the hypotheses.

Period of study

The study was carried out during a period of one year since January 2011. Result of the Discussion Stress Levels – Variables wise Table -1 describes the results of multiple regression analysis of the respondents in the Western Province in terms of R (Multiple Correlation Co-efficient), R2 (co-efficient determination) and the incremental value of R2.

Table -1 Result of Multiple Regression Analysis

Variables R R2 Incremental value R2 Dissatisfaction 0.723 0.522 0.522 Organizational Commitment 0.837 0.700 0.178 Work Load 0.920 0.846 0.146 Work Environment 0.990 0.980 0.134 Income 1.000 1.000 0.020

Source Primary Data

It is found from the above Table that among the five factors how to contribute occupational stress, the Dissatisfaction related to stress explains 52.2% of the total stress. The job Organizational Commitment related to stress accounts for 0.178%. The Work Load related to stress explains 14.6%, Work Environment related stress accounts for 13.4% and Income related to stress 2.0% on the total stress. It is inferred that Dissatisfaction related stress gets 52.2% while Organizational Commitment related stress. It is noted from the above table that nearly 52.2% is recorded in the Dissatisfaction related to stress among workers in the hotel industry of Sri Lanka.

Classification of Stress

Table - 2 shows the consequences of factor analysis made by using the principle of

component analysis under the varimax rotation with kiser normalization method.

Table – 2 Factor Analysis

Factors (Variables) Group 1 Group 2 Group 3 Dissatisfaction 0.824 Organizational Commitment 0.737 Work Load 0.526 Work Environment 0.334 Income 0.290

Source Primary Data

As shown in the above table that factors were classified under three groups based on

similar characters of the occupational stress of workers in the hotel industry. Table shows that



there are three groups such as group 1, group 2 and group 3 for the respondents. Dissatisfaction

and Organizational Commitment are as a group 1, Work Load is a group 2 and Work

Environment and Income can be seen as a group 3.

Correlation of Variables

Table - 3 reveals the results of inter correlation analysis between the different variables

of stress among workers in the hotel industry of Sri Lanka in the form of correlation matrix,

further; the significance of the correlation is also indicated.

Table - 3 Correlation of Variables

Variables of Stress Dissatisfactio

n Organizati

onal Commitme

nt

Work Load

Work Environment

Income

Dissatisfaction 1 Organizational Commitment 0.650* 1 Work Load 0.545* 0.650* 1 Work Environment 0.388 0.517* 0.567* 1 Income 0.477* 0.500* 0.654* 0.624 1

*- Significant at 5% level, Source Primary Data

According to the Table, there is a significant inter correlation between the different

variables of stress of workers in the hotel industry of Sri Lanka. It is revealed, significant inter

correlation among the variables can be created various level of stress in the hotel industry of Sri

Lanka.

Testing - Hypotheses:

H1 = There is a positive relationship between the degree of work load and the workers stress

related variables in the hotel industry of Sri Lanka.

The hypothesis, “There is a positive relationship between the degree of work load and the

workers stress related variables in the hotel industry of Sri Lanka.” is accepted. The correlation

value was positive and significant in all the cases of Work Load (four cases in Work Load),

Dissatisfaction (0.545*), Organizational Commitment (0.650*), Work Environment (0.567*) and

Income (0.654*). The above hypothesis is accepted since correlation value was positive and

significant.

H2 = There is a significant relationship between the degree of work load and the organizational

commitment related variables in the hotel industry of Sri Lanka.

As indicated in the table – 3 the hypothesis “There is a significant relationship between

the degree of work load and the organizational commitment related variables in the hotel



industry of Sri Lanka” is accepted. The value was significant in the cases of Work Load and

Organizational Commitment (0.650*) under significance at 5% level. The above hypothesis is

accepted because correlation value was significant.

Finding and Conclusion

Throughout the study the following findings here made.

There is a significant and positive inter correlation among the various stress related factors of

the workers in the hotel industry of Sri Lanka

It was found that there is a significant difference among all the factors of the dissatisfaction

related stress of the workers in the hotel industry of Sri Lanka. Hence, the level of stress is

significantly more.

There is a positive correlation between work load and stress.

The factors related to stress of workers were classified under three groups such as group 1,

group 2 and group 3

Conclusion

The variables; Dissatisfaction, Organizational Commitment, Work Load, Work

Environment and Income, were significantly influenced on the workers’ stress in the hotel

industry. It was noted that majority of factors are interrelated. It can be concluded that majority

of stress related factors are correlated and stress related factors significantly influence on stress.

Occupational stress related to three groups could be seen in the hotel industry. Throughout the

overall survey it can be concluded that the hotel industry workers are suffering from stress. And

stress management is an important issue to be addressed to maximize the performance of the

hotel industry in Sri Lanka. In a hotel, an individual has to challenge the hindrance stress that

draws off him back to reach the target. The sustainable development of the hotel industry is

necessary to manage workers stress.

References .

Central Bank of Sri Lanka (2011). Annual Report. Colombo

Chandraiah K, Agarwal, S. C., Marimuthu P and Manoharan N (2003). “ Occupational

Stress and job Satisfaction among managers”. Indian Journal of Occupational and

Environmental Medicine, Vol.7, No.2, PP6-11

Cooper C.L.and Catwright S. (1994). Healthy mind, healthy organization: A proactive

approach to occupational stress. Human Relation. Australia. 47 (4), Pp. 455- 471.



Goldman, George, Anthony Nakazawa, and David Taylor. ( 1994). ‘The Economic Impact of

Visitors to Your Community’. Corvallis, Oregon: Western Rural Development Center, Oregon

State University.

Jex, S. M., (2006). Organizational Psychology. John Wiley and Sons, Inc. New York pp 179-

207.

Kotler, Philip, John Bowen, and James Makens. 1998. Marketing for Hospitality and Tourism

2nd ed. Upper Saddle River, New Jersey: Prentice-Hall

Luthans Fred (2002), ‘Organizational Behavior’, McGraw-Hill, New York, NY10020,

America. Pp. 395- 422.

McGrath, J.E.(1976), Stress and Behavior in organization, Chicago, Rand McNally.

Nelson Debra L. and Quick James Campbell (2003) ‘Organizational Behavior’, Thomson

South –Western, Ohio 45040. Pp 216- 241, 538- 563.

Oi-Ling Siu (1996), ‘Occupational Stress among School teachers: A Review of Research

Findings Relevant to Policy Formation’ Education Journal, Chinese University of Hong

Kong.

Robbins Stephen P. (2005), ‘Organizational Behavior’, F.I.E. Patparganj, Delhi 110092,

India Pp. 576 – 586.

Ronald J. and Burke (1976) ‘Occupational stress and job satisfaction’, Administrative

Science Quarterly

Sri Lanka Tourism Development Authority(2011), Annual Statistics Report, Colombo

Steve M. Jex, (2002), ‘Organizational psychology’, John Wiley & Sons (Asia) Pte Ltd, 2

Clementi Loop, Sigapore 129809.



A STUDY OF EMPLOYEES MOTIVATION

E.Sathiyamoorthi1 Dr. S Tameem Sharief 2

Abstract Most employers today would like to have their employee’s motivated and ready to work, but do not

understand what truly motivates a person. Companies could be more efficient if the employees had an invested interest in the future of the company. There are essential needs to be met for a person, specifically an employee, to succeed in the workplace. I will examine different theories of motivations, how they are relevant to the workplace, and how employers can implement the theories to ensure happy and motivated employees.The most important theories include: Maslow’s hierarchy of needs, Herzberg’s two-factor theory, Aristotle’s seven causes, and the different types of motivation. Each theory is related in the fact that there are needs for all people to meet. Every employee is at a different stage in their lives, which requires different management techniques. It is shown that motivation must come from within the employee. The theories investigated will help describe how managers can influence their employees to self-motivate and produce the best work possible.There are two specific types of motivation: financial and non-financial. I will focus on ways the employers can motivate their employees using financial means as well as non-financial recognitions. In this day in time, there is not always a plentiful amount of money to spend on motivation, so it is important to understand how managers can make their employees feel important without breaking the bank. Both types need to be executed in a strategic way to provide the best results.

Lastly, I will focus on how managers are able to implement these types of motivation into their specific work place. This will show how motivation is important to all industries, and how it can change and impact the amount sales a company performs. Motivated employees will intern create a successful company. Introduction

One may ask why there is a need for managers to spend time on motivating their

employees, but the answer is to extend their existence. Employees make up an organization and

if they do not have organizational commitment, then there is no incentive to excel at their jobs.

A2012 study showed that eighty-six percent of organizations struggled with attracting new

employees and fifty-eight percent of those organizations expressed challenges with regards to

retaining current employees. Although this study is older, the information is still relevant today.

Studies show that when ten professional employees of an organization leave, that organization

loses roughly one million dollars. In addition to the financial loss, they also suffer the loss of

knowledge and experience the individual(s) may have, which is one of the most valued employee

assets. This cost could be avoided or lessened by motivating employees by keeping them

involved and committed to the organization.

Two important reasons that employees should be motivated are to achieve their own

personal goals and the organizational goals. In a study done by the Society for Human Resource

1 Research Scholar, The New Collage (Autonomous), Chennai 2 Research Supervisor, The New Collage (Autonomous), Chennai



Management, they found that eighty-six percent of the people they surveyed were satisfied with

their jobs (SHRM). This number could increase if the soon to be discussed techniques are

implemented in the specific work sites. In a different study by Career Vision, they found that

thirty-three percent of employees feel as though they have reached a dead end in their career

("Job Satisfaction Statistics"). The research presented will discuss the research and theories of

motivation, then prove there is a need for motivation in all workplaces and explain the most

effective ways of motivating employees with financial and non-financial means. The final

question is: how and in what ways can managers motivate their employees to make them more

productive to the organization?

Research Methods I began my research by interviewing people in the field of human resources to assist me

in developing a clear understanding and focus of motivation. The topic from the beginning was

motivation, but after talking to peers, adults, and my advisor I knew that I needed to focus on the

why and how aspects of the topic. I began my research on the internet by using Google to get an

understanding of exactly what I would be discussing. I then used search engines listed on the

Madras University library’s website. Soon after, I decided to look through relevant books for

information pertaining to motivation. Through all of these resources, I was able to gather the

information needed in order to justify my argument. Definition of Motivation

Just like any other word, there are variations of definitions to describe a concept.

Motivation too has many different definitions, but it is important to focus on those that are

related to the workplace. Understanding exactly what motivation is will help managers decide

what actions to take to encourage their employees. The definition of motivation starts with the

root word, motive. Webster’s Dictionary defines motive as, something that causes a person to

act. Therefore, motivation can be defined as, the act of providing motive that causes someone to

act. In other words, according to Nancy Shanks, motivation causes someone to act and someone

else cannot make someone motivated. It is the discretion of the person to decide if they are going

to be motivated or not. Motivated and unmotivated are not opposites, but instead, there are

determining factors that could cause someone to be unmotivated, such as life events and attitudes

towards a specific job.

With relation to the workplace, Ray Williams, who writes for Psychology Today, defines

motivation as, “predisposition to behave in a purposeful manner to achieve specific, unmet needs



and the will to achieve, and the inner force that drives individuals to accomplish personal

organizational goals” (Williams). A person becomes motivated in order to achieve their own

personal goals as well as the organizational goals. The more motivated an employee is, the more

likely they are to have organizational commitment and identify themselves with the organization.

This will meet some of the unmet needs, and connect them with the organization. If willing, the

manager is able to give the employee incentives to meet their own goals and the goals set by the

organization. Richard Ryan and Edward Deci, from the University of Rochester, agree that

motivated means that the person is moved to do a particular act. The authors describe motivation

as, the “orientation of motivation concerns the underlying attitudes and goals that give rise to

action”.

Although the words of the definitions might be different, they all are describing the same

concepts. Motivation is the act of getting someone to act on a situation. This definition will be

important throughout the rest of the paper due to the constant use of the word. When referring to

the word motivation, the above definition will be used. Now that there is an understanding of

what the word means, it is important to understand the studies that have been conducted and the

findings that have come about because of the studies.

Theories of Motivation There are many different theories that try and help explain motivation. Scientists have

been studying the topic of motivation for over a century and have made tremendous progress for

explaining motivation which can be interpreted into the workplace. The following are some

theories that have been proven and accepted by society. These include Maslow’s hierarchy of

needs, Herzberg’s two-factor theory, different types of motivation, such as intrinsic and extrinsic,

and the PERMA model.

Maslow’s Hierarchy of Needs Abraham Maslow was born in April of 1908 to Jewish immigrants from Russia.

Maslow’s studied law at City College of New York and Cornel. After getting married he moved

to Wisconsin so he could study at the University of Wisconsin. There he studied psychology and

earned his BS, MS, and PhD in 1934. Later in 1943, Maslow discovered his theory in which he

called the hierarchy of needs (Abraham Maslow).

Maslow believed every person had needs that need to be met. He transferred his idea into

triangle design. The follow displays Maslow’s hierarchy of needs (Hodder Education):Maslow



believed that people are motivated to fulfill their own needs (“Motivation Theories”). Every

person starts at the bottom of the pyramid and works to achieve the goals ofthe next layer

working to the top sector. One is not able to move on to the next level of the pyramid until the

needs of the first level are met. Once they move to the next level, those needs must be met and if

they are not, then it is possible to fall back down the pyramid. According to the article,

“Motivation Theories”, the following is a definition of the different levels.

The first level is the physiological needs. These are the basic needs that are to be met in

order to survive, including food, water, clothing, sleep, and shelter. The next step is security,

Self- Actualization

Esteem Affiliation Security

Physiological which means that the person’s surroundings are not threatening to them or their family. If the

environment seems to be safe, then it means that there is a since of predictability or stability in

the surroundings. Security could also include financial security so that there is no financial

uncertainty in the future. This could be achieved by creating a retirement package, securing job

position, and insurance. The third level is affiliation which is the need to feel a since of

belonging or to be loved. In the workplace, this means to feel as though they are a part of the

group and included in the work. People have the urge to be accepted by others, especially the

people they are around the most. The fourth level is explained as esteem. This is the view that

one has of themselves. In order to fully understand this level, the person must have a high image

of them self and encompass self-respect. This level has two components: feelings of self-worth,

and the need for respect from others. The last and final stage of the hierarchy of needs is self-

actualization. This level is defined as someone being all they can be and they have met each of

the previous stages. In this particular level, the person’s talents are being completely utilized.

Maslow believes that no one is ever completely self-actualized. People are always striving to be

better and use their talents in new ways. This is important to motivation because a person must

be motivated to fulfill their needs and strive for the next level until they reach self-actualization.

These needs motivate humans to care for themselves and live a rich life.



Herzberg’s Two-Factor Theory

Frederick Herzberg, was an American psychologist who was born in 1923 and passed

away in 2000. He completed his undergraduate degree at City College of New York and then

went on to pursue a graduate degree at University of Pittsburg. Herzberg was a management

professor at Case Western Reserve University where he was able to create the Department of

Industrial Mental Health for the university. He was a well-known psychologist focusing on

management and wrote many books pertaining to the idea (Western Libraries).

One of Herzberg’s many theories is known as the Two-Factor Theory or the Motivation-

Hygiene Theory. This theory is commonly related to Maslow’s theory of hierarchy of needs and

was conducted in the late 1950’s. In his first steps of studying the redesigning of jobs, he looked

at all the available information at the time. From this data, he decided to conduct his own study

which involved two-hundred accountants and engineers. From his study he found that the

subjects he surveyed described satisfying events at work in terms of factors that were connected

to the job itself. He believed that the mental health of an employee is directly related to

performing meaningful work (“Motivation Theories”).

Based on the study, he discovered factors that he labeled as motivators, or job content

factors, and hygiene factors, or job context. Motivators or job content factors were those that

focused on work. These included achievement, work itself, advancement, recognition,

responsibility, and growth. Likewise, hygiene factors or job context are defined as factors that

are related to job dissatisfaction. Examples of hygiene factors include the company,

organizational policies, administration, salary, status, job security, working conditions, personal

life, and interpersonal relations (Doyle, “Motivation Theories”). The organization may have

control over many of these factors, but some of them they do not, such as personal life or

interpersonal relationships.

Herzberg found that the factors that lead to job satisfaction are different and separate to

those that may lead to job dissatisfaction. He found that the growth needs, or the highest level of

needs, are the only real motivators of employees. Employees are motivated by the existence of

the motivating factors, but are only dissatisfied, not unmotivated, by the hygiene actors

(“Motivation Theories”). One of Herzberg’s leading arguments was, “for an employee to be truly

motivated, the employee’s job has to be fully enriched where the employee has the opportunity

for achievement and recognition, stimulation, responsibility, and advancement”. Herzberg found



that for the employee to be motivated, they must feel personally responsible for the products

produced from the job. This will have them working harder to achieve their own personal goals,

as well as the goals of the organization. The employee also needs to feel like the working that

they are doing is meaningful and enriching.

In order to do this and to address the different types of factors, a manager might want to

consider the following (“Motivation Theories”):

• Remove some job controls

• Increase worker accountability for their own work

• Give workers complete units of work to produce

• Give greater job freedom or additional authority to workers

• Make periodic reports directly to the workers (not through the supervisor)

• Introduce new and more difficult tasks

• Assign specialized tasks to workers so they can become experts

The Four Motivations There are four commonly defined motivations which include: extrinsic motivation,

intrinsic motivation, in trojected motivation, and identified motivation. Before the definitions are

explained, the following charts, from Changing Minds, which is a website that collects data on

psychological findings, help illustrate the importance and definitions of the four

motivators("Extrinsic Motivation”, "Four Motivations.").

Definition of Different Types of Motivation

Motivation Behavior sustained by: Example External Motivation environmental reward or

punishment contingencies Do work because paid to do it.

Interjected Motivation desire to avoid internally imposed guilt and Recrimination.

Do work to earn money to sustain family.

Identified Motivation desire to express important Self-identifications.

Do work because it is what I want to do.

Intrinsic motivation is done for reasons that are internal to one self. It is for self

satisfaction and not for the fear of a consequence. The reward is within the action itself and does

not need external factors to steer behavior. Extrinsic motivation comes from external factors and

the actions are done because of what has been said. This means that if we are told to do



something, we do it because of extrinsic motivation. In trisected motivation also comes from

within one’s self, but if the action is not done, then the person is filled with guilt.

The main difference between in traversed and intrinsic motivation is the feeling of guilt. Lastly,

identified motivation is defined as when person knows that a task needs to be completed, but

does nothing to complete it ("Four Motivations”). These different definitions help define the

different types of motivation that employees encounter. As extrinsic motivation rises, intrinsic

motivation decreases because the person starts to only look for external rewards instead of

working on something for personal satisfaction. There should always be a combination of both,

but in essence, the person must be able to motivate from within to truly gain worth or a feeling of

self-accomplishment from a task or goal.

These four motivators were studied by Lepper, Greene, and Nisbett in 1963. They wanted

to see if extrinsic rewards had any effect on people. There are intrinsic rewards and extrinsic

rewards as well. Intrinsic rewards are those that come from within a person. The reward is not

tangible and is important to the individual, such as pride. There are also extrinsic rewards which

are those that are given out by another person. These rewards are tangible and the individual

must prove themselves to someone in order to obtain the reward, such as a bonus.

Lepper, Greene, and Nisbett had two groups of children coloring and drawing. One of the groups

was told that they would receive a medal for their drawings at the end and the other group was

not told they would get anything. It was found that the group that was promised nothing worked

harder than the group that was promised the metal (Greene and Lepper).

Intrinsic motivation was first studied through animal behavior, and then transferred into

studies of human behavior. A person gains understanding of skills through acting on a previous

interest. It is also important to point out that not every person is intrinsically motivated for every

single task and does need some extrinsic motivation as well. Intrinsically motivated behaviors in

turn feed the psychological needs of a person, such as competency or self-worth. On the other

hand, extrinsic motivation has as separate reward other than feelings from within. A great

example of this for people in school is that students work hard throughout the year to earn the

grades they receive. The grades are the external reward that the students are motivated by.

Richard Ryan and Edward Deci, the writers of “Intrinsic and Extrinsic Motivations; Classic

Definitions and New Directions” state that,“ because extrinsically motivated behaviors are not

inherently interesting and thus must initially be externally prompted, the primary reason people



are likely to be willing to do the behaviors is that they are valued by significant others to whom

they feel connected, whether that be a family, a peer group or society”.

Along with motivated people, there are a motivated people. This means that “a person’s

behavior lacks intentionality and a sense of personal causation”. This can be caused by many

different reasons such as the person not valuing the task being done, the person not feeling as

though they are adequately trained or knowledgeable to complete the task, or the person not

thinking that there is a desirable outcome from the task.

Perma Model Dr. Martin Seligman is a well-known psychologist and has written many books on

different topics regarding psychology. He is currently a professor at the University of

Pennsylvania teaching psychology (University of Pennsylvania). In 2011 he published a

bookcalled Flourish in which he described his PERMA model. PERMA stands for positive

emotion, engagement, positive relationships, meaning and accomplishment/achievement

("PERMAModel."). Dr. Seligman says that these five categories are essential for humans to have

long lastingwell-being ("PERMA Model.").

The following definitions of the five categories are from Mind Tools and Changing

Minds articles. In order for us to experience well-being, we need to have many different positive

feelings throughout the day. Dr. Barbara Fredrickson, a well-known researcher in emotions,

tastes that for every one negative feeling we have, we need to have three positive feelings to

continue the current state of happiness ("PERMA”). Positive emotions include: peace, hope,

love, etc. Dr. Seligman believes that people need to take the time out to identify people, places,

or events that give the person pleasure so that they can focus on those and make sure to

incorporate them into daily life. Secondly, we should be engaged in the work or tasks that we

take part in. The engagement in work creates what is called “flow” which is when we find

ourselves enjoying moment and concentrating on what we are working on. In order to increase

engagement at work or in life is to decrease the amount of distractions and interruptions. The

opposite of engagement is distraction. This will keep the person alert and motivated by being on

task ("PERMA Model."). Next, we need to create relationships with the people around us.

It is proven that people who have meaningful relationships with those around them are happier

than those people who do not. Most people will spend a majority of their life at work, so these

positive relationships should start in the work setting to create a better environment.



As human beings, we need to do activities that give life meaning and enjoyment to help

with lasting well-being. To do this, we should engage in activities in which make a difference

bigger than we can imagine. Meaning can come internally or externally. Lastly, we need to have

achievements and accomplishments in our lives. There are countless accomplishments that can

be done to better ones self. All five of these categories add up to the long lasting well-being of a

person. With all five, a person will be more motivated and have a better work attitude. A person

must be aware of themselves and what objects or people make each of these categories richer.

Example of Motivation

When motivating employees, there are two main ways: financial motivation and

nonfinancial motivation. A McKinsey Quarterly study found that seventy percent of

organizations say that they use or plan on using a motivation program (Dewhurst, Gut ridge, and

Mohr). Many managers still believe that money is everything. Through research, it is shown that

for most people non-financial rewards or recognition serve as a better motivator than money.

Rewards, financial or non-financial, can be achieved independently or as a group. There are

positives and negatives to groups in the work place. Group rewards can be positive because the

employees have a common bond together, the teams are more likely more productive, and

communication between employees and upper management increases due to the team

atmosphere. There are also some disadvantages which include: high performers are discouraged

by working with low performers, there is a higher likelihood of conflict, and there can be more

pressure on people when others are not completing their work (Doyle). Either individual or

group rewards, the following are some examples of financial and non-financial rewards.

Financial

When speaking about financial motivators, it means that the employer spends money a lot

on the reward directly, or the employee receives some kind of monetary reward. Financial

rewards are short-term motivators to employees and are forgotten about later in the employee’s

careers. This method may not take as long for management, but it also does not have as long as a

lasting effect on employees.

The most common financial reward is either a cash bonus or a salary raise. More than

half the employees surveyed by the Society for Human Resources Management in 2009 said that

benefits and compensation are important ("2009 Employee Job Satisfaction"). With the recent

economy, compensation may be more important, but it may not serve as a strong motivator for



all. A cash bonus is extra payment on top of the regular salary to encourage employees to work

harder and meet company goals (Hodder Education). A bonus motivates the employee to

understand exactly what the organizational goals are as well as to be a productive employee and

make sure the goals are met. There are certain deadlines for bonuses which are usually around

Christmas time or in the summer. Bonuses benefit the employee as well as the employer. The

employee receives money that they would have not had and the employer gets the best work

possible from the employee. An increase in the employee’s salary is called a raise. Raises are

usually done once or twice a year. These raises are based on performance, sales, and many other

factors that are important to the specific organization. Raises are usually a percentage of the

current salary. Raises are also associated with promotions. Promotions and raises motivate

employees to be on their best behavior and perform at the top level.

Another way to motivate employees with regards to pay is commission. Pay can be based

purely on commission or can be an addition to a salary. This type of pay is usually used for

people in sales and is a percentage of the amount of sales that are completed. Commission pay

encourages the employees to make as many sales as possible so they can increase their

income(Hodder Education). The Society for Human Resources Management 2009 Employee Job

Satisfaction survey says that “employees were asked how likely they were to stay with their

current organization if they were offered more money, with the same benefits, at another

company. Almost six out of 10 employees indicated that they would be very likely to leave their

current position if they received an offer of a 30% salary increase and the same benefits package

from another company” ("2009 Employee Job Satisfaction").

An employer can also offer benefits to its employees as a way of compensation and

recruitment tool to attract the most motivated employees. Benefits can range from organization

to organization. There are many different packages and the employer has the option to pay for a

percentage of the premiums or none at all. The less the employee has to pay, the more they are

able to save and are financially motivated. In hard economic times, some employers may use

benefits as a form of compensation, which keeps the pay low, but the compensation even or high

("2009 Employee Job Satisfaction"). The better the benefits package, it could make the company

more appealing to candidates in the job market.

Another form of financial motivation is organizations offering employees to participate in

profit sharing program. Profit sharing, as its name implies, means that the employees get a



proportion of the profit on top of their regular salary. This type of motivation is usually used in

the service sector because it is hard to calculate the employees profit contribution to the

company(Hodder Education). Profit sharing is a good way to motivate employees because the

more profit the company makes, they more they will receive as well. This motivates employees

to work harder and be the best employee they can be. This also give the employee a feeling that

they are a part of the business since they are directly associated with it. This gives a unique

common bond between all employees. A drawback of profit sharing is that there are some

employees that will not work as hard as others, but they will still benefit in the profit sharing

program (Hodder Education).

A last major example of financial motivation is called piece work, which means that the

employee gets paid based on the amount of a product that is produced ("Financial and Non-

Financial Incentives"). The employee is usually paid a minimum base and is given extra money

based on how much product is produced. This method is good for employers as well as

employees. The employer will have more products made at a quicker rate and the employee will

be paid more on how much they produce. There are draw backs to this type of motivation. The

first problem is that this method only works if there is a way to count how much is produced by

specific employees.

There has to be a counting method. Secondly, employees may try to rushthrough the

production process to make more products and the quality may decrease ("Financial and Non-

Financial Incentives.").

There are many ways to financially motivate employees, but these may become expected

or unappreciated. There are different methods for all different sectors of the economy. Not all

will work for every type of job, but there should be one that fits for an organization. If these

methods are used properly, they can be extremely helpful tools to motivate employees and have

them understand that their work is appreciated. Financial tools are limited due to the direct tie to

the budget. Hard economic times make financial tools harder to implement. If employees are

used to getting bonuses and one year they do not, they may become discouraged and decrease in

productivity. It needs to be noted that managers must be careful with all types of motivation, but

specifically with monitories because employees are dependent of financials for their livelihoods.



Non-Financial Unlike financial motivators, non-financial motivators are more plentiful and can bring out

the creativity of managers. This method does take more time on the manager, but it has longer

lasting effects. If a manager wants to truly motivate their employee, they need to think about the

individual and decide what non-financial rewards can be given to a specific employee. It needs to

be said that everything requires money whether that be time, resources, materials, etc. In

aMcKinsey Quarterly survey, they found that the following non-financial motivators are viewed

no less, or sometimes more effective than the top rated financial motivators: praise from

managers, attention from leaders, and the opportunity to lead projects (Dewhurst, Guthridge, and

Mohr). In this discussion of non-financial motivation, it means that there is no monetary reward

given to the employee, but instead focuses on the emotional needs of the employee. There are a

wide variety and many different ways to non-financially motivated employees, but this paper

will only focus on a few of them.

Non-financial motivators are based around the idea of recognition, which is found

through many surveys to be the key driver of motivation in most employees. Dr. Gerald

Graham,a professor at Wichita State University, found in one of his studies that the “top five

incentives that employees mention are free. These are (1) ‘a personal thank-you’ from the boss,

(2) a‘ written thank-you’ from the same, and (3) ‘public praise’”.

Recognition is only effective if it is delivered in the correct way and has meaning behind it. The

rewards must be meaningful and be given for an action that the manager wants repeated by other

employees.

To make a reward meaningful, it should be specific to the person receiving it, and it

should have thought put into it. It will mean more to a person if they know the reward is

sentimental and meant for them. Employees should not be given a reward for a good effort, but

instead on a stellar job on a project or action. It is also important to recognize the employees that

are behind the scenes and doing the background work. Without these people, the organization

would not stay afloat.

There are many different ways to conduct effective recognition. The most basic way is to

give a verbal compliment to the employee. This could be an acknowledgement of job well done

,a good sale, or a particular action that the employee did that benefitted the organization. The

compliment could be done in public or in private. This gives the employee reassurance that they



are doing what their managers are looking for and that they are paying attention to the work

being done. Secondly, the manager could send the employee an E-mail that explains the

appreciation of the employee. This is an immediate way to show gratitude, but an E-mail is less

meaningful to an employee as a hand written note. A hand written note shows the employee that

the manager took the time to write a message to them. This could be hung in their work space as

a “trophy” to other employees.

A manager can also publically acknowledge an employee in front of their peers at a

meeting, presentation, in the office, etc. There are a variety of different ways to strategize on

how to go about the acknowledgement. The process can be short and sweet, or drawn out into a

large ceremony for the person. Acknowledging the person in front of their peers will motivate

them and have others look at them as a role model in the work place. In Shawn Doyle’s, “The

Manager’s Pocket Guide to Motivating Employees” suggests that there should be a “hero” in the

work place. This is someone that is looked up to and people can go to with questions. This

“hero” can be made by public recognitions. Although a hero could be helpful in the workplace,

but a manager must be care to not make other employees resent the person.

There are different types of rewards for short and long term goals of the organization. Rewards

can also be grouped into different types.

The following definitions come from Shawn Doyle’s article, “The Manager’s Pocket

Guide to Motivating Employees”. The first type is a MBO reward which is when there is a

common goal between the employee and the manager and if the goal is reached then the

employee receives a reward based on the terms of the agreement.

This can be financial or non-financial. The second is an accomplishment reward when the

manager has identified an achievement and rewards are given to the employees when the actions

towards the achievement are observed. A tenure award is given to employees based on a

timeframe of their commitment to the organization. All of these different types of rewards can be

done non-financially. The rewards do not have to involve some type of money, which is

commonly believed.

Rewards can be tricky because they have to be given correctly to avoid any complications

from other employees. Rewards can create resentment among the work place. This can be

avoided, given the right circumstances and making all employees feel appreciated and that their

work is valued (Doyle). Managers should not over recognize people, but instead only give



rewards when they are deserved. Recognition can lose its value when it is done all the time and

is no longer personal to the employee. If it is overdone, employees can start to expect rewards

and when they are not given when they believe they should, it can create the opposite affect and

discourage the employees. Rewards should be done spontaneously so that they are a surprise and

valued. The manager should also give recognition and rewards honestly (Doyle). If they see that

there is a problem, then it should be addressed. If a manger follows the proper steps in giving

rewards and recognition, it can be a wonderful non-financial tool to motivate employees.

One way to provide non-financial motivation is to provide an opportunity for job rotation. Job

rotations allow for the employee to explore other jobs within the organization. This is a great

training tool so that the employee can have a better understanding of all that jobs that are done in

the organization. This also prevents the employee from getting bored in their own job and gives

them the opportunity to do something different for a while (Hodder Education). This technique

does not work for all areas, but is specifically good for the factory sector. Job sharing is another

way to allow flexibility in the workplace and keep employees happy.

Job sharing means that a job that would typically be done by one person is split up into

two people who each do half the time to add up to a full time employee. This gives the

employees flexibility in their work schedule (Hodder Education). It is important to make sure

there is good communication between the two people so that they can work together and relay

any important information that the other would need to do their job.

A good way to provide motivation as well as a since of cohesion to a group is to allow

the employees to work in teams. This is great for a task that takes different people with different

skill sets. It allows employees from a range of departments to work together and become a group

with a mission. The team is responsible for the decisions made, so they have to work together.

Being appointed to the group is a form of non-financial motivation because it can be a

prestigious accomplishment to be part of working groups. This gives each employee the

opportunity to demonstrate their talents to the whole organization. A 2009 study done by the

Society for Human Resources Management found that “employees rated opportunities to use

their skills and abilities in their work as the fourth most important aspect of their job

satisfaction”("2009 Employee Job Satisfaction"). Employees are more likely to be confident in

their work when they are doing something that they enjoy and are good at. The study also states

that, “nearly one-half of employees (47%) indicated that their professional abilities/skills and the



importance of their job to their organization’s overall success increased their sense of job

security” ("2009 Employee Job Satisfaction"). The work given in the groups should be

meaningful and used once completed. Employees want to know that what they are doing is

impacting the organization in a positive manner. If the work is not valued or meaningful, then the

employee could become discouraged.

Security is another non-financial motivator that can be used in the workplace. This

security is used in all senses. Employees want to feel that their job is secure and will be there in

years to come. This allows them to freely work and have to worry about what will happen if they

lose their job. It motivated the employees to work their hardest because they are sure their work

is benefiting the company. Security is also used in the physical sense. Employees do not want to

feel as though they are in danger while they are at work. “Fifty-four percent of employees

and52% of HR professionals indicated that feeling safe in the work environment was very

important to employee job satisfaction”, in which females ranked it more important than males

("2009Employee Job Satisfaction"). This number has doubled from 2004 with the recent threats

of violence in the workplace ("2009 Employee Job Satisfaction").

Lastly, quality circles are a good way to get employees involved, and for management to hear the

concerns of the employees so that they can appropriately address them. The quality circles meet

on a regular basis to analyze the work and see if there are better ways to complete it(Hodder

Education).

The circles benefit the organization because it will help create happier employees as well as

better products. Quality circles can lead to meetings with management. When employees are able

to give their input to management, it makes them feel as though their opinion is valued and their

work is crucial to the organization. Through these quality groups and meetings with

management, the employees are able to create meaningful relationships in the workplace which

can be a good motivator. With these meaningful relationships, the employees are able to feel

connected to other employees as well as to the organization.

A great example of a company that motivates their employees and has gotten a lot of

recognition is Southwest Airlines. Colleen Barrett, the president and COO, says, “We want

people to have fun at work. We don’t want them to think that work is, you know, this

professional stuffy, stereotype, you know, leave your personality at home and become this

robotic Stepford wife-type deliverer of whatever it is that you do”. Southwest’s culture is based



on recognition which is done by Barrett herself. She writes personal notes to the employees and

makes appearances at employee gatherings. Southwest has worked hard to create this culture.

They have jobs that are specific for recognizing employees and creating culture programs

(Baldoni, 19). As well as having fun, Southwest Airlines also puts an emphasis on hard work and

dedication. The employees know that they are to work hard and keep the customers happy. This

type of culture has helped the business grow financially. For the sixth year, Southwest Airlines

was named in the top 10 Most Admired Companies by Fortune Magazine.

In the article, “Southwest Airlines Employee Motivation”, it explains Southwest Airlines

seven elements in employee motivation. The first is having a strong set of values. These values

come from the organization itself as well as from the employees. The values are clear and must

be accepted by all. The second element is that the employees come first, which is clear in their

mission statement as well. Southwest values their employees and makes sure that their wellbeing

is valued. Third is rewards and recognition. The employees know what is given by the company

when a job is well done. The fourth element is the mission of the organization. Not only is the

mission statement written, but it is also believed throughout the organization. Next is the hiring

process. Southwest is very rigorous in an attempt to find the best possible candidate for every

position. The sixth element is distributed leadership, which means that there are strong leaders

throughout the entire company.

Every level has leaders and every level is training employees to become leaders. The last

element is performance management. This is essential to articulate the goals to all employees and

keep the organization transparent. There are many companies that value motivation in employee

like Southwest does. There are also many companies that could learn from the culture that

Southwest has in order to benefit their own organization.

Implications for Managers

Ways to implement financial, non-financial, and other types of motivation could be used

by managers to help motivate their employees and allow them to be the best that they can be. If

taken seriously, managers have the opportunity to change the culture of the organization and

create one where employees are valued and motivated. It needs to be noted that not every

employee is motivated in the same way. Every employee is different and has different needs. The

manager needs to take this into account and recognize the differences between each employee to

make sure they are helping them meet their needs. People may not necessarily be motivated by



one particular factor, but it could be a combination of things that really want them to work. The

following recommendations could have extreme lasting effects on the organizations and the

employees working for them.

Aristotle says that every action that someone takes is due to one of seven causes that he

identified. These causes include: chance, nature, compulsions, habit, reasoning, anger, or

appetite. Managers should take the time to understand why their employees are performing the

way that they are. First, a manager should be a leader. This will give the employees something to

look up to. It will also encourage the employees to perform on the same level as the manager.

The manager should also display the actions that he/she wants from their employees. It is a lead

by example kind of attitude that will have employees trying to behave the same. If an employee

is looking to advance their career, then they can learn from their manager exactly how to act

when they reach that promotion.

By leading by example, managers should create an environment where their employees feel that

they are able to perform up to their potential. John Baldoni, the author of Great Motivation

Secrets of Great Leaders says that, “leaders need followers to follow them; organizations need

leaders to lead them”.

Baldoni also says that leadership can be described by two things: trust and results. The

employees must be able to trust their manager, which in turn must create the results they are

looking for. In order to gain trust, they must be able to lead by example and the employees must

feel that they have the support and guidance from their leader. Leaders are not directly able to

motivate their employees, but indirectly by creating an environment in which the employee is

able to motivate themselves (Baldoni, 4). From the Society for Human Resources Management

findings of what motivates employees, they believe that employers are able to get the best talent

possible if they follow what motivates employees. Being able to use personal skills was ranked

highly in what creates job satisfaction. Therefore, employers should make this a priority so that

their employees are able to use their skills and abilities to their fullest ("2009 Employee Job

Satisfaction"). This will give the employees the opportunity to feel that they are valued, as well

as being used to their fullest potential. This will motivate them to do their best since they are

working in their professional area. “The first challenge is to motivate employees to work toward

helping the organization achieve its goals. The second is to motivate employees to work toward



achieving their own personal goals”. A manager should make sure that they are meeting these

two goals for their employees.

First, an organization should make sure that they start from the beginning of the process,

the hiring process. The following information is from Shawn Doyle’s, The Manager’s Pocke

Guide to Motivating Employees (Doyle). Doyle says that in order to create a motivated working

place, it must start with hiring motivated people. This can be done by conducting multiple

interviews to make sure that the person is exactly who the managers believe them to be. It also

helps identify if the prospective employee will fit in with the rest of the organization. First, a

phone interview should be done to screen the applicants and make sure only the best move on to

the next round. There should next be an initial interview to get to know the person on a basic

level. There should then be at least one or two more interviews to get to know that applicant

better to make sure that they indeed fit in with the organizational culture. The hiring manager

should be the one to make the final decision. They know what their office is like and exactly

what they are looking for. Human resources should be involved to make sure that the hiring

process is legal and going correctly, but the hiring manager should make the final decision on the

applicant to hire.

After the hiring process, the employees first few days are very important. The employee should

feel welcomed because the first few days are the true impression they have on the organization.

Again, Doyle believes that the new employee should be given an accurate job description. This

will motivate the employee because they will be aware of exactly what they are supposed to be

doing. Also, from the manager’s perspective, this is a way for them to hold the employee

accountable for their work. The job description should be done in writing so that the employee

has the opportunity to go back and review. Also, if it is in writing, then there is no vagueness in

what is supposed to be done. Alone with the job description, the employee should be told the

importance of their job. This will motivate them by showing how valued they are in the work

place. It will also create an organizational web and show where they fit in within the

organization. Once they realize where they are in the company, they will then be able to see how

their job relates to all other jobs. Lastly, the employee should be told about the organizational

goals and where the manager sees the organization heading in short term and long term time.

This can be done in orientation, annual reviews, communication, actions, etc. The goals should

constantly be discussed so that the employees and even the manager, does not forget about them.



There are many different ways that managers can make sure that their employees are motivated.

First, managers should expect the best from their employee. If they did not think that the

employee could do the task, then they should not have been hired in the first place. It is

motivating to employees to know that their managers believe that they can be the best, and that

they expect it (Shanks, 33). People will be as good as others believe they are. Desirable behavior

should be rewarded properly. Work places should be fun and pleasant. Since most of someone’s

life is spent at the work place, it should be a place that they enjoy going instead of dreading.

Managers should focus on their employees and their needs. Every employee is at a different

stage and has different needs. Ramlall and Thomas say, “Employees have multiple needs based

on their individual, family, and cultural values. In addition, these needs depend on the current

and desired economic, political, and social status; career aspirations; the need to balance career,

family, education, community, religion, and other factors” (Ramlall, 58). When the manager

takes the employees needs into consideration, they are displaying a helpful behavior.

Through studies, it has been shown that those who have positive attitudes are more willing to

help others (Staw, Sutton, and Pelled, 56). If the manager is willing to help their employees, then

they can help with the development of that employee. Employee would rather be challenged in

their work and if they have a helpful manager at their side, they can be confident (Ramlall, 58).

Lastly, very employee was hired for a reason and they all work for the same organization.

Everyone should be treated equal. There should not be someone who receives every award and

gets all of the attention. The authors from Harvard Management Update agree that employees

seek equity, achievement, and camaraderie ("Why Your Employees Are Losing Motivation").

Employees want to be treated fairly in the workplace. They also want to receive the respect that

they deserve. Employees also want to feel proud of their accomplishments, and they want their

employer to also be proud of them. Lastly, they want to have good, lasting relationships with

those they work with. A manager should try to achieve these goals. The authors believe that

mangers can achieve these by providing recognition. Again this can be financial recognition as

well as non-financial recognition. They also say that managers can coach employees and

communicate with them.

Managers and employees have the responsibility to make sure that the work place can be

the best that it can be. It has been explained what the managers can do to make sure that

employees are happy and motivated, but employees also have a responsibility to make sure that



they accepting the motivation from within. Baldoni says that employees “need to open

themselves up to the examples of communication, coaching, challenging, and recognition”

(Baldoni, 209). A work place environment is more likely to succeed if all parties are willing to

participate.

Conclusion

Motivation is a complex concept and can help or harm an organization depending on how

it is used within an organization. If a manager takes the time to understand the needs of his/her

employees, then the recognition can be extremely useful. There have been many philosophers

who have tried to understand what motivates people, but every person is different and a theory

cannot describe all people. It is understandable the mangers have a full time job and do not have

much down time to be spending on rewards, but it also gives them the opportunity to understand

their employees and connect with them on a personal level.

Managers are not the only ones who can recognize others in the workplace. Employees

can recognize each other as well. It has been proven to that one can not directly motivate

someone else, but they can give them the tools they need to motivate themselves. Managers are

the resources for employees and they should make sure that their work environment is pleasant

and desirable. This will help the productivity and improvement of their employees. If the above

suggestions are implemented properly, managers will have a fully motivated team.

Resources "Abraham Maslow." Web. 08Nov. 2014. <http://webspace.ship.edu/cgboer/maslow.html>.

"Employee Motivation: Theory and Practice." Team Building Training and Development. Web.

12 Nov. 2014. <http://www.accel-team.com/motivation>.

"Biography - Frederick I. Herzberg (1923-2000)." Western Libraries. Web. 06 Dec. 2014.

<http://www.lib.uwo.ca/programs/generalbusiness/herzberg.html>.

"PERMA Model." Management Training, Leadership Training and Career Training. Web. 31

Oct. 2014. <http://www.mindtools.com/pages/article/perma.htm>.

"PERMA." Changing Minds. Web. 31 Oct. 2014.

<http://changingminds.org/explanations/motivation/prema.htm>.

"Job Satisfaction Statistics." Career Vision: Career Counseling, Guidance, Planning, and

Assessments. 2005. Web. 11 Dec. 2014. <http://www.careervision.org>.



EFFICIENT STRATEGIES FOR ENHANCED SELF POSITIONING

Dr.C.Shanmugapriya1 Sankar Prabakaran 2

Abstract

Self-positioning is a process for personal self-reflection; you can do it on your own, as a personal development exercise, or with a group of people who agree to work with you for the mutual benefit of all of you. It is based on the psychology of social skills development. self-positioning is reflective, but also active, because you have to go through the exercise of thinking and you are invited to think about some action you can take. It’s also gentle: You can pick and choose: some will not be relevant to you, some will strike you like a hammer. Over time, you can build up by trying out different opus.is the practice of people marketing themselves and their careers as brands. While previous self-help management techniques were about self-improvement, the personal-branding concept suggests instead that success comes from self-packaging. The term is thought to have been first used and discussed in a 1997 article by Tom Peters. Personal branding, self-positioning and all individual branding by whatever name, was first introduced in 1937 in the book Think and Grow Rich The idea surfaced later in the 1981 book Positioning: The Battle for Your Mind, by Al Ries and Jack Trout. Branding has reached a new level of imperative because of the rise of the Internet. The growth of the virtual world created the necessity of managing online identities. Despite being expressly virtual, social media and online identity has the ability to affect the real world. Because Individuals want to portray themselves a certain way to their social circle, they may work to maintain a certain image on their social media sites. As a result, social media enables the creation of an online identity that may not be completely true to the real self. The purpose of this paper is to examine the personal. Three research questions are addressed, each of which contributes to the overall aim: What is the level of awareness about personal branding? How personal brand can be achieved? The findings contribute to the theoretical discussion on the source of the personal image and the factors that will help to enhance the image

Introduction

Does your brand popular? Do you have a Brand?I bet you would say no, am I right? Guess

what… ‘Your Brand’ Already Exists and is known.Brand is a promise --- a set of values and

expectationsPersonal branding is the process that takes your skills, personality, values and

unique characteristics and packages them into a powerful identity that lifts you above the crowd.

One of the hot topics in self improvement field today is personal branding .Each of us has

unique personality, strengths, gifts, talents and also a distinct objective or aim in our life. By

connecting all those talents and aim we open ourselves to a higher level happiness and success.

In today’s business world more than ever knowledge is preeminence. "It's the idea of 'Me Inc.'"

This meaning that each individual must take accountability for ensuring that the market be on

familiar terms about them and their services. With all of the social media opportunities today,

personal branding is frequently being used not just in personal, but also in professional roles. It

1 Assistant professor, Veltech Multitech Dr.Rr & Dr.Sr Engineering college ,Avadi, Chennai. 2 General Manager, Aceway Industries, Lagos Nigeria.



can be quite a dilemma for people to brand themselves successfully without losing their real

selves in the process. (Marshall (2009)

The key to personal branding is to know, how you are perceived by others.

A personal brand is a person’s public persona; it is the image that you consciously build up of

yourself. This image is based on what you stand for and how you want to be perceived by the

people around you. A strong personal brand is built by clear communication and consistent

actions, so that people around you and media perceive you the way you want to be perceived. All

personal branding gurus agree that cultivating an image and marketing it takes a real work. The

persons in the top level management of any business organization need to have a look at their

self. I believe winning people is more important in ones life. One have to expose, expand and

express the genius. One should have a clear understanding of who you are and what you're

meant to do. One have to apply the knowledge to attract the people and opportunities that are a

"perfect fit" for you! The more you win the people the more you get opportunities in everything.

The following chapter discusses the concept of personal branding

The chapter briefly explains the conceptual framework of personal branding. The main elements

in personal branding are listed in the below figure.

Fig 1 : Conceptual framework for personal branding

Here in the above conceptual diagram this paper is concentrating on the fifth element out of the

13 elements that is Specialization, service and dominant attribute. According to Rampersad

(2008)



The above holistic Personal Branding framework will help you to create a brand that builds a

trusted image of yourself and will help you enrich your relationships with others, master

yourself, unlock your potential, and develop self-esteem.

Review of related literatures

This chapter reviews some of the related literatures in the topic of personal branding.

A trivial research on who said what about personal branding is given below. Here’s a list of

Personal Branding quotes NOT from the usual suspects of Personal Branding experts but from

people who have achieved remarkable things and built up great brands.

“Your brand is what people say about you when you’re not in the room” - Jeff Bezos, Founder

of Amazon

“All of us need to understand the importance of branding. We are CEOs of our own companies:

Me Inc. To be in business today, our most important job is to be head marketer for the brand

called You.” - Tom Peters in Fast Company

“Your premium brand had better be delivering something special, or it’s not going to get the

business.” - Warren Buffett, Investor and philantropist

“Personal branding is about managing your name — even if you don’t own a business — in a

world of misinformation, disinformation, and semi-permanent Google records. Going on a date?

Chances are that your “blind” date has Googled your name. Going to a job interview? Ditto.” -

Tim Ferriss, Author of the 4-Hour Work Week

According to Deckers and Lacy (2011) the purpose of brand is “an emotional response to the

image or name of a particular company, product, or person”. Kahle and Kim (2006) view a

brand as “a ‘name, term, sign, symbol, or design or combination of them which is intended to

identify the goods or services of one seller or group of sellers and to differentiate them from

those of competitors”

Marshall (2009) stated the benefits of an authentic personal brand. What are the benefits of an

authentic personal brand? Having a strong authentic personal brand is an important asset in

todayâ ™s online, virtual, and individual age. It is the key to personal success, and it's the

no vision + no self-knowledge + no self-learning + no thinking + no mindset change + no integrity + no happiness + no passion + no sharing + no trust + no love = no authentic Personal Branding



positioning strategy behind the world's most successful people, such as Oprah Winfrey, Richard

Branson, and Bill Gates. Everyone has a personal brand, but most people don't manage it

strategically, consistently, and effectively. It's important to take control of your brand and the

message it sends, as it will help you distinguish yourself as an exceptional professional.

Thomson (2006) uses an example of political campaigns to demonstrate this idea. “The

candidate’s message, public appearance, endorsements, and so on, are all controlled by

consultants and political parties in the hopes of managing perceived quality and brand image to

increase ‘market share’ at the polls”

According to the paper by Mohammad Fazli Baharuddin (2014) in an IBIMA conferene, it is

stated that librarians need to have a strong personal brand according to him librarians should be

approachable to achieve the goal , vision and mission and he also says that the image of what the

public has on them is very much academic. Having a personal brand would allow librarians to

represent the level of knowledge and professionalism they possess. He also presented a

conceptual framework of developing personal branding for librarians based on literature reviews

and also it discuss on 3 facets of a librarians personal branding namely level of education,

competencies and interests

Sepdi (2010) in her thesis provided information about how individuals can develop their

personal brand she insists that the main objective to personal brand is to develop it to gain an

employment where personal brand will help you stand out among the competitors

Juliana (2011) in her paper Developing and Managing Personal brands strategies in

marketing and public relations focused on various aspects of personal and celebrity branding

and how strategies in marketing, public relations and entertainment industry contributed their

growth and management.

His research questions were How does one gain visibility through the creation of a brand? How

does personal branding differ from corporate or product branding? How does one develop a

personal or celebrity brand from the ground up using strategic planning? How can the success

and widespread knowledge of a personal brand be measured?

According to Schawbel (2009), you need to approach your career in terms of Differentiation

(standing out in the crowd) and marketability (providing something people Want or need)

Creating a brand, say those who are doing it, means taking something amorphous and making it



tangible. Branding also can mean simply identifying a career goal and implementing a game plan

to achieve it (Towle, 2003).

Deckers and Lacy (2011) suggest the five universal objectives to creating a personal brand: (1)

discovering your passion, (2) being bold, (3) telling your story, (4) creating relationships, and (5)

taking action.

Accoriding to Branding Guru Tom peters Personal branding will also develop as people feel

the need to be heard and to be able to position themselves in a world of increasing competition.

Where one person is just like another in terms of skill sets and experience, it will be the personal

brand that will act as the differentiator.

“Branding demands commitment; commitment to continual re-invention; striking chords with

people to stir their emotions; and commitment to imagination. It is easy to be cynical about such

things, much harder to be successful.” - Sir Richard Branson, CEO Virgin

“It’s important to build a personal brand because it’s the only thing you’re going to have. Your

reputation online, and in the new business world is pretty much the game, so you’ve got to be a

good person. You can’t hide anything, and more importantly, you’ve got to be out there at some

level.” - Gary Vaynerchuk, Author of Crush it!

“If I lost control of the business I’d lose myself–or at least the ability to be myself. Owning

myself is a way to be myself.” -Oprah Winfrey, Television mogul

“Life isn’t about finding yourself. Life is about creating yourself.” - George Bernhard Shaw,

Author

“Too many people overvalue what they are not and undervalue what they are.” - Malcolm

Forbes, Publisher

“Be Yourself, Everyone Else is Already Taken”. - Oscar Wilde, Author and Playwright

Findings – Awareness is a key indicator of people's knowledge about the personal brand .

Branding may be an elementary tool in enhancing awareness as well as altering or reinforcing

stereotypical views. The results of this study bring out that out of the 13 elements in personal

branding like personal vison, mission, key roles, brand objectives, specialization , service ,

domain , personal brand statement, brand story, personal critical success factors personal

objectives, performance measures, personal targets and personal improvement actions . Focus

has been made on specialization & service



Research limitations/implications –. The findings contribute to the theoretical discussion on the

source of the personal image and the factors that will help to enhance the image.

Practical implications – Knowledge of the information sources and their role in image building

will help person to stand out uniquely among their competitors.

Originality/value – To the authors’ knowledge, this is the second study to focus on personal

branding

Specialization & service in Building a Personal brand:

Conferring the figure in the conceptual framework 5th element Specialization and service is

enlightened as it is considered most important in developing self brand. For a proper

specialization and service in building a personal brand the below points are considered to me

most appropriate.

When building a personal brand you have to focus even more on your issue. An issue is

something you are passionate about, something that drives you. It is something you work for

which is above your commercial and personal level; in society or in your business - globally,

regionally or locally. Generally you can have better control of your personal brand than a

corporate brand, since you are the only one who is responsible for it.

The reality is we are all branded by other people whether we like it or not. It can’t be

avoided. It just depends on whether you proactively create your own brand or leave it to chance

and are branded by others. In other words, ‘Brand or Be Branded.’

Here are some questions to get you thinking about your own brand.

How you think that others feel about you?

In what way others describe you?

What three words do you feel your boss or clients would use to describe you?

What pops up in others mind when they see you?

Right now, what does your reputation say about you?

What three words would you like others to use to describe their experience of

interacting with you?

Picture your ideal self. You have become the new and improved version of yourself.

Write out a paragraph describing yourself, how you look, the characteristics you

display regularly, the emotions you feel.



Are you proud of your reputation? If not, are you ready to take personal responsibility for

your reputation?

What is that people often admire in you?

In an age where the ‘job for life’ concept has been replaced with career mobility, the ability to

determine your own brand is vital in terms of your career success.

Guidelines to build up a personal brand

Principle 1: Become genuinely interested in other people.

Try to accept people as they are. Everybody has both the positive and negative qualities .Look

into the positive qualities of othes. A simple way to make a good impression.

The expression one wears on one's face if far more important than the clothes one wears on one's

back. Actions speak louder than words.Make others feel that you are genuinely interested in

them.

2: Remember that a person's name is to that person the sweetest and most important

sound in any language.

The average person is more interested in his or her own name than all the other names on earth

put together. Remember that name and call it easily, and you have paid a subtle and very

effective compliment. But forget it or misspell it-and you have plac e yourself at a sharp

disadvantage. Whenever you meet a new acquaintance, find out his or her complete name and

some facts about his or her family, business or political opinions. Fix all these facts well in mind

as part of the picture, and the next time you meet that person, even if it was a year later, you will

be able to shake hands, inquire after the family, and ask about the hollyhocks in the backyard.

Sometimes it is difficult to remember a name, particularly if it is hard to pronounce. Rather than

even try to learn it, many people ignore it or call the person by an easy nickname. Most people

don't remember names, for the simple reason that they don't take the time and energy necessary

to concentrate and repeat and fix names indelibly in their minds. If you don't hear the name

distinctly say excuse me I didn't get your name clearly. Then, if it is an unusual name, ask how it

is spelled. Use the person's name several times in the conversation; try to associate it in your

mind with the person's featur es, expression and general appearance.



Principle 3: Be a good listener.

Encourage others to talk about them.

An easy way to become a good conversationalist is to listen intently; listen because you are

genuinely interested. That kind of listening is one of the highest compliments we can pay

anyone. Be more eager to hear what a person has to say then even they are to tell it. Many people

prefer good list eners to good talkers, but the ability to listen seems rarer than almost any other

good trait. All we want when we are in trouble is a friendly, sympathetic listener to unburden

yourself. That is frequently all the irritated customer wants, and the dissatisfied employee or the

hurt friend. If you aspire to be a good conversationalist, be an attentive listener. To be

interesting, be interested. Ask questions that other persons will enjoy answering. Encourage them

to talk about themselves and their accomplishments.

Principle 4: Talk in terms of the other person's interests

The royal road to a person's heart is to talk about the things he or she treasures most. Make an

effort to find out what interests the person then get them talking about it. Talking in terms of the

other person's interests pays off for both parties. When asked what reward he got from it, Mr.

Herzig responded that he not only received a different reward from each person but that in

general the reward had been an enlargement of his life each time he spoke to someone.

Principle 5. Make the other person feel important-and do it sincerely.

How to make people like you instantly?Ask yourself " What is there about him or her that I can

honestly admire?" That is sometimes a hard question to answer, especially with strangers. You

want approval of those with whom you come in contact. You want recognition of your true

worth. You want a feeling that your are important in our little world. You don't want to listen to

cheap, insincere flattery, but you do crave sincere appreciation. So let's obey the Golden Rule,

and give unto others what we would have others give unto us. How? When? Where? The answer

is all the time, everywhere. Use little phrases such as "I'm sorry to trouble you, ___." "Would

you please ___?" "Won't you please?" "Would you mind?" "Thank you." The unvarnished truth

is that almost all the people you meet feel themselves superior to you in some way, and a sure

way to their hearts is to let them realize in some subtle way that you recognize their importance,

and recognize it sincerely. Talk to people about themselves and they will listen for hours.



Principle 6: Accept People and keep Smiling.

A smile says, “I like you. You make me happy. I am glad to see you." You must have a good

time meeting people i f you expect them to have a good time meeting you. You don't feel like

smiling? Then what? Two things. First, force yourself to smile. If you are alone, force yourself to

whistle or hum a tune or sing. Act as if you were already happy, and that will tend to make you

happy. "Action seems to follow feeling, but really action and feeling go together; and by

regulating the action, which is under the more direct control of the will, we can indirectly

regulate the feeling, which is not."

How to market a personal brand ?

Your issue is your best tool for communication. Then you will find opportunities to expose

yourself in the places and media that are important for you. When you show real involvement

and are clear, you automatically radiate charisma and attract attention

Your brand can be marketed through

Impression Intellectual Positive self image Education Concentration personality Making Impression

Let us take a concrete example. A man comes; you know he is very learned, his language is

beautiful and he speaks to you for hours; but he does not make any impression. Another man

comes; he speaks only a few words, not well-arranged, ungrammatical perhaps, and not fluent in

speech; and he makes an immense impression. Many of you have seen such occasions. So it is

evident that words alone cannot always produce an impression. Words, even thoughts, contribute

only 1/3 of the influence in making an impression; the man 2/3. What you call the personal

magnetism of the man - that is what goes out and impresses you. Coming to great leaders of

mankind, we always find that it was the personality of the man that counted. The personality of

the man is 2/3 and his intellect, his words, his thoughts etc. is only 1/3.

Man-making

The ideal of all education, all training, should be this man-making. But, instead of that, we are

always trying to polish up the outside. The man who influences is a dynamo of power. When he

is ready, he can do anything and everything he likes. Though this is a fact, no physical laws will



explain this. Compare the great teachers of religion with the great philosophers. The

philosophers scarcely influenced anybody's inner man, and yet they wrote most mavellous

books. The religious teachers, on the other hand, moved countries in their lifetime. The

difference was made by personality. In the former we touch the intellect; in the latter we touch

life.

Positive self image

One have to concentrate on the individual body shape, style personalities and also the color of

the outfit. The science of yoga helps to build up the positive image of a person. By doing yoga

one can develop the personality very well.. This is one of the great practical things and this is the

secret of all education. This has a universal application. They are laws, very fine, which are

behind the physical laws, as we know. The grossest part is the body and the finest is the spirit.

A very short course in human experience boils down three dimensions: mind, emotions, and

physical.

1. Mind: to learn, think, create, decide, discern, act, negotiate, allocate resources, give-and-

receive, and perform.

2. Emotions: every person has a "heart" place -- either cold or warm that is the center of and

defines a quality of spirit, affinity and action that, if positive, leads to sincerity, joyfulness,

commitment, and promise-keeping.

3. Physical: a physical form, a body, a look that creates a physical presence.

Qualities of a great person, and a great brand.

Turn now to think about some of the qualities you might recognize in a successful person. First,

a successful person knows how to meet and make contact with others in friendly ways. They're

reliable and consistent: people trust them. They have a well-focused clear vision in life;

something vital propels them and outsiders see it. Beyond making contact, they have a knack for

truly connecting their world and with others on an intellectual, emotional, or physical plane.

Lastly, an effective person picks a spot to demonstrate leadership by motivating, teaching, or

coalescing followers in some important way. Any person, regardless of station in life, can

demonstrate leadership.

Colors and Outfits

Everybody dresses according to the mood and personality, not only following fashion. And I do

believe that colours affect our mood, and that we prefer to dress depending on the mood we



have on a certain day. Generally, we like to dress in light colours like white, yellow or even pink,

when we are in a good mood, when we are happy and feel that we have nothing to worry about.

It seems as if we’d like to be in the centre of attention and that our joy and happiness

contaminated the persons around. There are persons who make a good choice expressing their

inner feelings by the way they dress and by the colours they choose.

By choosing proper colors we are enhancing our appearance and assisting ourselves to feel good

as well. By learning the language of colors we can create the mood we want by bringing a

positive influence into our lives. Understanding colours will give you a little guidance on how to

choose and mix your clothes so that your sense of style would be unique. You do not necessarily

need to copy styles from magazines, or sew exactly what your designer says will suit you.

Instead, choose a style that will make a designer ask if he has been sleeping all the while or

even wish you were his assistant! Imagine a woman with a yellow blouse over a red pleated skirt

and purple shoes. Believe me, she would look like a clown who has lost his way to the circus or

better still, a magician in a children’s cartoon! There is a saying that you never never get a

second chance to make a first impression.

Education

Education is the manifestation of the perfection already in man. Knowledge is inherent in man.

No knowledge comes from outside; it is all inside. The external world is simply the suggestion,

the occasion, which sets one to study their own mind.

We say Newton discovered gravitation. Was it sitting anywhere in a corner waiting for him? The

falling of an apple gave the suggestion to Newton, and he studied his own mind. He rearranged

all the previous links of thought in his mind and discovered a new link among them, which we

call the Law of Gravitation. It was not in the apple nor in anything in the centre of the earth.

All knowledge therefore, secular or spiritual, is in the human mind. In many cases it is not

discovered, but remains covered. When the covering is being slowly taken off, we say "we are

learning”. The man from whom this veil is being lifted is the more knowing man. The man upon

whom it lies thick is ignorant. All knowledge and all power are within. All knowledge comes

from the human soul. Man manifests knowledge, discovers it within himself, which is pre-

existing, through eternity. No one was ever really taught by another. Each of us has to teach

himself. The external teacher offers only the suggestion, which arouses the internal teacher to

work to understand things. Then things will be made clearer to us by our own power



of perception and thought, and we shall realise them in our own souls. Within man is all

knowledge, and it requires only an awakening, and that much is the work of the teacher. We

want that education by which character is formed, strength of mind is increased, the intellect is

expanded and by which one can stand on one's own feet. The end of all education, all training,

should be man-making.

Concentration

There is only one method to attain knowledge, and that is called 'Concentration'. From the

lowest man to the highest yogi, all have to use this same method. The more the power of

concentration, the greater the knowledge that is acquired. This is true even in cooking,

polishing, making money or in worshipping God.

Conclusion

The main difference between men and the animals is the difference in their powers of

concentration. This same power of concentration makes the difference between man and man as

well. When a professor gives a lecture, the students understand it differently according to their

respective degree of concentration. The power of concentration is the only key to the treasure-

house of knowledge. Brand identity is relevant not just for companies, but also for individuals.

Some advocate complex strategies for personal brand creation, but

we assert that social network interactions in Facebook, LinkedIn and Twitter implicitly define a

personal brand. We posit that the chain of people and entities with whom the individual

interacts both explicitly and implicitly as well as the topics of those interactions is core to three

facets of personal brands: actual, targeted, and perceived. Analysis and refinement of personal

information generated in network relations can quickly create a personal brand. This paper

presents an experiment to change our brand

With these above guidelines one can have an idea of how to market your brand and how to be

specialized in some criteria’s for self branding

Build your Brand by

Building your experiences

Building your learning attitude

Building your expertise in a particular area

Building your academic credentials

Build thirst for knowledge in the area in which you want to specialize



Build self promotion by moving with people

Build up the network with the people whom you are moving around.

To conclude if one think marketing and branding are concepts only relevant to business , it is

wrong. What companies like Wipro, Cognizant etc do on a global scale we can apply to our

career also.

The sky-scrappers in the world of business or any other field see the power of corporate

branding strategies and apply them to their own business.

In the words of marketing and branding guru Tom Peters , “ we are CEOs of our own

companies: ME incorporated. To be successful , our most important job is to be head marketer

for the brand called “ YOU “.

Start imaging you as brands and start managing your professional life accordingly

Make people think of you when they think of your field…………..

References

1.Rampresad ( 2008) http://www.brandchannel.com/papers_review.asp?sp_id=1360

2.Marshall (2009) Authentic Personal branding

http://www.businessweek.com/managing/content/sep2009/ca20090929_228578.htm

3.Mohammad.F (2014) , conceptualizing personal brand for librarians

http://www.ibima.org/SPAIN2014/papers/mfna.html

4.Sepdi (2010 ), Perosnal branding, a case study on how individuals can develop themselves as

their own personal brand , http://epubl.ltu.se/1402-1773/2010/144/LTU-CUPP-10144-SE.pdf

5.http://www.brandchannel.com/images/Papers/PersonalBrandingMeInc.pdf

6. Me Incorporated : Your Own Magnetic Brand by Randall Frost

7. Be Your Own Brand by Karl Speak

8. The Brand Called You by Tom Peters, www.Fastcompany.com

9. The Brand Called You - By Julie Fuimano, Success Coach

10. Ries, Al; Trout, Jack (1981). Positioning: The Battle for your Mind. McGraw-

Hill. ISBN 978-0-07-135916-0.

11. http://economictimes.indiatimes.com/opinion/self-brand-

positioning/articleshow/23016809.cms

12. Marshall, P.D. (1997). Celebrity and power: fame in contemporary culture. Minneapolis:

University of Minnesota Press.



GROWTH AND PROSPECTS OF MSMES IN INDIA

Harisha H 1

Abstract India adopted liberal and free-market principles in 1991 and liberalised its economy to international trade under the guidance of Former Finance minister Sri. Manmohan Singh under the Prime Ministry of Sri P.V. Narasimha Rao, prime minister from 1991 to 1996, who had eliminated Lincence Raj, a pre- and post-British era mechanism of strict government controls on setting up new industry. Following these major economic reforms, the government of India has withdrawn many protective policies for the Micro, Small and Medium Enterprise (MSMEs) and have introduced promotional policies to increase the competitiveness of the sector. This globalization process has forced the MSMEs to face the ruthless competition not only from Indian large enterprises but also from Multi-national companies. With the introduction of MSMED Act in 2006,this sector is facing many problems and Challenges. In this current paper, the authors have made an attempt to analyse the challenges faced by the Owners of MSMEs with some suggestions for improvement . Key words: Micro, Medium and Small enterprises, Liberalisation, Globalisation.

Introduction

The strength of any country is measured by its economy. The economy of any country is

expressed in terms of its Gross Domestic Product (GDP). GDP is explained briefly as” It is the

total consumption (private + government spending), investment and trade balance (exports -

imports) together.”

The following table shows the GDP and respective population of some important countries to

have a comparison of economy of different important countries, US which tops in its GDP with $

15.1 trillion dollars is having 3rd Rank in its population but India with a population of about 124

crores and standing at 2 place after China stands at 10th place in GDP. With about ¼ population

of India, US stands at 1st Rank as for as GDP is concerned, indicating that US is having a very

strong economy.

The table showing the GDP and population and their ranks of few important countries:

Table 1 Sl no Country GDP Rank Population Rank 1. United states $15.1 trillion dollar 1 31.7 cores 3 2. China $ 7.32 trillion dollar 2 136 cores 1 3. Japan $5.9 trillion dollar 3 12.7 cores 10 4. India $ 2.47 trillion dollar 10 124 cores 2

Source: Wikipedia, Washington post If the GDP trend is positive it means the economy is growing and if it is negative, it means that

the economy is shrinking. It is broadly the economic worth of the country. The major 1 Asst. Prof. Dept of commerce and Management, Shridevi P.G Centre, Tumkur , Karnataka.



contributors to the constitution of GDP are Agriculture sector, Industry sector and the Service

sector. Among these, the Industry sector and the Service sector are the major contributors to

GDP.

Table 2 Sector wise contribution to GDP by different countries

Source- CIA world fact book The table above shows the sector wise contribution to GDP by the same countries mentioned in

table1.It can be observed from the table that, among the four counties china looks to be having a

balanced contribution of different sectors to its GDP, indicating a healthy growth for China

The constituents of Industry sector is further identified as the Micro, Small, Medium and Large

Enterprises. The classification is based on the amount of Capital investment made.

A major change took place in 2006 with the enactment of MSME Development Act, 2006. In

accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED)

Act, 2006, the Micro, Small and Medium Enterprises (MSME) are classified into two categories.

(a) Manufacturing Enterprises- The enterprises engaged in the manufacture or production of

goods pertaining to any industry specified in the first schedule to the industries (Development

and regulation) Act, 1951. The Manufacturing Enterprise is defined in terms of investment level

in plant & machinery.

(b) Service Enterprises: The enterprises engaged in providing or rendering of services and are

defined in terms of investment in equipment.

The limit for investment in plant and machinery / equipment for manufacturing / service

enterprises, as notified are as under:

Manufacturing Sector Enterprises Investment in plant & machinery Micro Does not exceed twenty Rs. 5 lakhs Small more than Rs.25 lakhs but does not Exceed Rs.5 crores

Medium Enterprises More than Rs.5 crore but does not exceed Rs10 croresr Service Sector

Sl No. Type of Enterprise Capital Amount limits

1. Micro Up to Rs. 25 Lakhs 2. Small Above Rs. 25 Lakhs and below Rs.5 Crores. 3. Medium Above Rs.5crores and below Rs, 10 Crores 4. Large Above Rs.10 Crores



Enterprise Investment in equipments Micro Does not exceed Rs.10 lakhs Small More than Rs.10 lakhs but does not exceed Rs.2 crores Medium More than Rs.2 crores but does not exceed Rs. 5 cores

Source: MSME Development Act 2006, MSME Government of India. The contribution of Micro, Small and Medium Enterprises (MSME) sector to manufacturing

output, employment and exports of the country is quite significant. According to estimates, in

terms of value, the sector accounts for about 45 per cent of the manufacturing output and 40

percent of the total exports of India. The MSME sector employs about 42 million persons in over

13 million units throughout the country. There are more than 6000 products, ranging from

traditional to high-tech items, which are being manufactured by the Indian MSMEs.

The Govt. of India has provided two separate Ministries, one to look after the affairs of Micro,

Small and Medium Enterprises (MSME) and the other to look after the affairs of Large

Enterprises. With the introduction of Liberalisation policy by India and the technological

advancement in the area of IT industry, the contribution of the service sector to GDP became

more significant and important. The effect of this was that Agriculture and industry sector took

the back seat in contributing to GDP. Particularly the Industry sector suffered in the hands of

Service sector because of the disparities in the salary, comforts, huge employment opportunities

and working conditions provided by the IT industry of Service sector. So, the hit on Industry

sector obviously hit individually on the constituents of the Industry sector also.

Micro, small and Medium Enterprises (MSMEs) are one of the most dynamic, sensitive and very

important sectors the in Indian economy. The significance of Micro, small and Medium

Enterprises (MSMEs) is due to its capacity of employment generation, low capital and low

technology requirement, use of traditional or inherited skill, use of local resources, mobilization

of resources and exportability of products.

The MSME sector today is functioning under severe competitive environment due to: to:

(a) Liberalisation of the investment regime during the 1990s, favoring foreign direct investment

(FDI).

(b) The formation of the World Trade Organization (WTO) in 1995, forcing its member-

countries (including India) to drastically scale down quantitative and non-quantitative

restrictions on imports



(c) Domestic economic reforms.

Analysis

The following are some of the few challenges faced by MSME sector in Indian scenario

1. Effect of the liberalization and the agreement of WTO

Earlier to liberalization and WTO agreement there was a protected market for the 821 items

manufactured by MSME’s. However because of the acceptance of liberalization policy and the

agreement with WTO, presently only 20 items are reserved for MSME. That too, items reserved

for MSME varies from pickles to wax candles, safety matches, glass bangles, steel chairs, steel

and aluminum utensils and etc. These 20 items reserved for msmes does not have any impact on

the exports by msmes because of it’s limited demand or insignificant demand. For example Glass

bangles , wax candles themselves ,are having very much limited domestic demand and hence

we cannot expect international demand for these products. However the international demand

for unreserved products are high but there is a tough competition from countries like China and

South Korea, where their govt’s policies favors their msmes to manufacture their products on

mass production. Under these conditions it is very difficult for our msmes to compete with

their international counter parts .

As per the norms of the central government 50% of the total production of MSME should be

export oriented. So the production of any MSME directly depends on demand from the outside

country. The item reserved for MSMES are all having very less demand or no demand outside

the country and hence the MSME’s although having high capacity to produce may be compiled

to produce less.

2. Financial constraints

Small businesses face a different range of problems than their larger counterparts, due to their

inability to enjoy some of the same advantages in the marketplace. Most of these problems are

due to revenue and cash-on-hand availability when the bills come due. If the products are to be

manufactured with quality ,then the capital investment may increase steeply making the msme a

debtor instead of earning profits as the Machines for making high quality products will cost

heavily to the msme. So the financial constraint may come as a road block for msms ,because of

the govt policy of limiting the financial assistance to msmes. Msmes cannot raise their finance

from public in the form of equities like companies coming under large industries

The financial problems can be classified into:



A. Less Cash flow

B. Rising costs

C. Taxation and business regulation

D. The higher dollar rate

E. High Interest rates

3. Competition from internal and external enterprises

The revenue of an msme much depends on how much it sells in the market. this quantity depends

on how much demand is there for it’s product. This demand depends on the export potential and

the domestic demand. So the msmes has to compete with the domestic market and the

international market.

The MSMES are having external competition from outside the country and internal competition

from large enterprises.

External competition is due to the effect of liberalization and Agreement signed at WTO. These

factors have directly affected the export of MSME products. In particular china and South Korea

became the important rivals or competitors for Indian.. In fact unsigned and unhealthy price war

declared by china had serious effect on the export of items from most of the counties.

Internally also, the MSMEs were made to struggle and compete with large enterprises, as most of

the reserved items for MSMEs were converted into unreserved items and the large industries

started making the products once reserved for MSMEs. . For example Bosch a large enterprise

under the name of MHB filters Ltd in Tumkur are manufacturing Air filters for automobiles.

Which are usually manufactured by msmes.

4. Government policies

No doubt the Government is spending significant sums on support for MSME, but the effective

use of these funds by Government agencies were not assed and monitored. The result was

suffering for MSMEs. Hence the Task Force took the view that it was important to attempt to

assess the impact of this expenditure, and to make recommendations on how business are better

channeled and targeted. It is needed that the potential role for Government to support small

business with programmes whose outcomes are monitored and shown to be effective.

The ministry of micro small and medium enterprises, Government of India and state

governments are offering heavy subsidies depending upon the enterprises product and the export

potential.



5. Quality awareness

To create export demand, the product should have quality and low price. This is very difficult to

achieve as the price increases with the quality. To reduce the price of the product , the product

has to be manufactured on mass production without comprising the quality. This requires

Machines and equipments costing heavy amount towards capital investment for the msmes.

Msmes cannot afford this amount because of the ceiling fixed by the government. The msmes

cannot raise the money for investment in public as is done by large industries.

To compete internationally the Quality of the product should be very good and the price should

be competitive. But both cannot go together. In fact most of the products manufactured in China

are very much compromised with the price. They will not give any guarantee as for as the

quality is concerned and hence the prices for their items will be very low.

Conclusion

1. There are adverse effects on the export of msme items because of liberalisation and

globalization. But this cannot be avoided..

2. Because of the financial constraints imposed by both the Central Government and the State

Government, these constraints had become a road block to the healthy growth of MSMEs

sector in India.

3. Like a big fish eating a small fish, large enterprises are manufacturing some of the items

which were earlier reserved for the MSMEs.

4. There is a difficulty in the functioning of MSMEs to produce high quality products at

competitive prices, because of their inability to invest on costly machineries and

equipments.

5. poor exposure of MSME products at international level, although there is “National

Promotional council” exclusively setup by Government of India to look after and improve

the export opportunities for the products of Indian MSMEs.

6. The 20 items exclusively reserved for MSMEs does not have any worth at the international

market and hence very poor demand for these items.

7. Some of the policies of the govt. are coming in the way of positive growth of MSMEs.

8. The effect of inflection and devaluation of rupees against American dollars are also the

reason for the poor exports or stagnation in the export growth.



Suggestions

1. Although much can’t be done against liberalization and globalization Governments should

revive their policies to suit the msmes of India.

2. Government should relax some of the financial constraints like, source of funding to suit in

favor of MSMEs in India.

3. At least at domestic level if possible, some of the engineering products having good demand

at national level should be reserved for MSMEs to boost their performance.

4. To overcome the high investment on costly machineries and equipments the Government

should come forward to establish a common facility center in each district so as to enable the

MSMEs use their facilities on rental basis.

5. The functions of “The National Promotional council” should be critically revised and suitable

changes are to be made, to improve the interaction between Indian and its foreign countries

with regards to the MSMEs Products.

6. The Government of India should encourage to manufacture the msmes items

which are having heavy demand abroad by extending some incentives and subsidies if

possible.



STRATEGIC LEADERSHIP: NEW PARADIGMS IN MANAGING WORKFORCE DIVERSITY

Mrs. Jesintha 1S Dr.R Rajendran2

Abstract

Workforce diversity continues to be a key focus for organizations, in the globalized economy. This diversity challenge can be managed effectively by a Strategic leader. They have high potential and capacity to navigate with change. A strong focus on long-range objectives and the process to be followed to achieve such objectives are the hall mark of strategic leaders. This study highlights how an organization can retain its diversified workforce for a sustainable success. It also portrays the new paradigms in the leadership traits and attributes that are required to manage the diversity effectively. Human capital is the valuable asset of a firm. Every employee has a defined profile which varies from time to time depending on career progression. Strategic leaders focus on grooming the talents and skills of the workforce. Key words: Workforce diversity, Strategic leader, Career progression

Introduction

Diversity can be defined as the individual differences due to age, gender, cultural

background, geographical location, spiritual practice and so on. Managing diversity is the way

the organization manage change and the way the leaders leads the workforce. An ideal

workforce management is the key for the success of the organization. Leaders with high

potential and determination can bring forth new ideas which result in creativity and innovation.

Strategic leaders are catalyst for change who also prepare the organization for change.

(Finkelstein & Hambruck 1996, Hitt & Keats 1992)

Strategic Leadership involves creating meaning and purpose of the organization with a

powerful vision and mission that creates a future for the organization (Ireland 7 Hitt 1999).

Strategic Leadership focuses on the top executives and leaders who create an impact on

organizational performance through their leadership. Leaders face the challenge of managing a

diversified workforce because they need to consider the values, beliefs and emotions of each

individual. Strategic leaders have the core competence like formulating goals and strategies for

the organization, grooming the next generation of executives, maintaining an effective

organizational culture, sustain a system of ethical values. The strategic leaders must motivate the

lower levels of management to fulfill two vitally important responsibilities. First, the leader

1 Research Scholar, Mother Teresa Women’s University. Tamilnadu. 2 Research Supervisor, Mother Teresa Women’s University, Assistant Professor(SS), Department of Business Administration, Annamalai University.



must obtain essential and accurate information from the lower level management for the

formulation of strategic plans. Second, is to make all the levels of employees to participate in

the implementation of strategic plan.

MNCs, often characterized by a distinctive corporate leadership culture which

emphasizes harmony, helpful attitude, conflict balancing, and consensus prior to taking crucial

decisions (Falkenberg, 1997) which is fairly unique and appealing to study. The Business firm

has to define how it is going to meet the challenges and how it will achieve its competitive

advantage. The traditional leaders merely accept the facts of a diverse workforce in the global

economy. The strategic leaders respect and make positive use of key differences including

gender, age,, culture and geographical location. Elenkov and Manev (2005) found that socio-

cultural context moderates the relationship between leadership and organizational innovation in

private firm. This concept was further justified by Santos, Cooper and Santora (2008) that

organizational culture plays a moderating role in the relationship between leadership and

organizational innovation.

Statement of the Problem

In the current scenario the largest employment providers are Information and

Communication industries. Most of the work in this sector has to be performed in teams. In

order to accomplish the targets, the workforce belongs to different backgrounds work together.

The Project leaders and team leaders have a tough time in managing the diversified workforce.

Business that fails to successfully manage diversity will suffer economic and social

consequences. . .A workplace culture that allows disruption to work teams results in loss of

productivity. The traditional leaders focused only on short-term business affairs whereas

Strategic leaders focus on the changing business environment. They emphasize on the

development of individual and organization as a whole.

Objectives of the study

The present study aims at determining the leadership traits and attributes required to

manage the workforce diversity effectively. The purpose of the study is to focus on the

psychological dimension of leaders in coping with environmental changes.

Research Methodology

The research design of the study is descriptive in nature. This research article identifies

the competencies that are required for the strategic leaders in managing the diversified



workforce. The study is purely based on secondary data. It is collected from Journals, Research

articles, Newspapers and Websites. The study is limited with Information and Communication

industries. Primary data was not used for the study.

Review of literature

In a life-span perspective, a leadership style is fundamentally the outcome of a

development process. Most empirical theories, however attempt to analyse and explain the

individual’s behavior in isolation from any developmental processes that may have led to the

individual’s present state.

Morrison (2000) points out the individual and company perspective of strategic

leadership. He identified the competencies of strategic leaders as follows;

(1) Relationship management (includes five competencies: change agentry,

community building, conflict management and negotiation, cross-cultural

communication, and influencing)

(2) Business acumen (includes five competencies: depth of field, entrepreneurial

spirit, professional expertise, stakeholder orientation, and total organizational

shrudness)

(3) Personal effectiveness (includes five competencies: accountability, curiosity and

learning, improvisation, maturity, and thinking agility)

Research shows that the major trait of a leader that influence the organizational

performance is Charisma. Boal and Bryson (1988) suggest that there are two forms of

charisma: Visionary and crisis responsive. The first form of charisma results from the leader

creating a world that is intrinsically valid for the follower, in which the behaviors are linked with

organization vision and goals. The second form of charisma results from a leader creating a

world that is extrinsically valid, in which outcomes are linked to behaviors. The visionary

charismatic leader starts with the creation and move towards action. On the other hand the crisis

responsive charismatic leader starts with action and move towards the creation of new

interpretative schemes.

Fings, an internationally known consultant and speaker on leadership highlighted other

general personality traits associated with effectiveness. It includes “outside-the box thinking”

encouraging people to think creatively, clear vision and exercising self-control. The other



characteristics of an effective leader include independence, risk-taking; focus on winning,

adaptability and ethical attitude.

Specific attributes of Strategic leader

Most empirical theories treat leaders and followers as individuals who exist only in the

public domain. The private activities, personal needs, and values of the person outside work are

seen as off limits. Leaders bring their personal lives into their work in ways that are not always

rational or easy to control. It is unrealistic to imagine that events and experiences outside the

professional sphere do not affect a leader’s formal decisions and programs. When knowledge of

the person’s capacity to deal with all of life’s stressors, as a family member, citizen, or neighbor,

is lacking, the ability to predict leadership effectiveness is severely curtailed. Indeed, the

capacity to integrate disparate pieces of personal identity and experience across situations has

been considered the question mark of highly effective leadership and other creative phenomena.

The research reviews for leadership attributes that were published between 1990 and 2003 are

offered by Mumford, Zaccaro, Harding, Fleishman, and Reiter-Palmon (1993) and by Mumford,

Zaccaro, Harding, Jacobs, and Fleishman (2000). They specified six categories of leadership

attributes: (a) cognitive abilities, (b) personality, (c) motivation, (d) social appraisal and

interpersonal skills, (e) Problem-solving skills and (f) leadership expertise and knowledge

Key Attributes of strategic leader 1. Cognitive capacities General intelligence Creative thinking

capacities

2. Personality Extroversion Conscientiousness Emotional stability Openness Agreeableness Intuition

3. Motives and needs Need for power Need for achievement Motivation to lead

4. Social capacities Self-monitoring Social intelligence Emotional intelligence

5. Problem-solving skills Problem construction Solution generation

6. Tacit knowledge Skills Expertise

In 2009, Management Research Group (MRG) completed a large scale global study on

leadership practices and effectiveness of 40,000 managers and executives in 144 countries and

27 industries. Each participant was assessed with the Leadership Effectiveness Analysis (LEA), a

360-degree assessment tool measuring 22 leadership practices and more than 20 measures of

effectiveness. Leadership included such practices as innovation, persuasion, communication, and

results orientation, while measures of effectiveness included such characteristics as future

potential, credibility, business aptitude, and people skills. The Research group found that



strategic approach to leadership was between two and 46 times more important to the perception

of effectiveness than any of the other behaviors studied. In fact, leaders who were high on

“strategic” (those who focused long range and who had a process to achieve those objectives)

were five times more likely to be seen as effective as the leaders that were low on strategic,

independent of any of their other behaviors. This suggests that a strong strategic orientation is an

important factor in the successful transition from a mid-level to senior position

Techniques for strategic leadership

This ability to derive value from human differences is a core skill for 21st-century

leaders. The leader must aware of the cultural impact on global workforce. The diversified

workforce needs a flexible leadership; and focused guidance.. All of these tasks require leaders

who balance their own strong identity with their daily effort to understand people who are very

different from themselves.

The leaders value and leverage human differences, including gender, age, nationality,

belief, and work styles. The leaders can prove their ability to work with diverse people and

appreciate cultural perspectives by practicing the following ways;

• Strive to meet the needs of team members representing other cultures.

• Encourage free flow of communication among the team members who vary

among themselves

• Effectively lead groups made up of diverse people.

• Learn about the business practices of other cultures.

• Manage virtual teams with explicit customer centric goals and practices.

Conclusion

Burgehman and Grove (1996) says that life of any organization is an important

Strategic inflection points (SIPs). These SIPs are caused by changes due to technology, so it

creates an opportunity for the strategic leaders to develop new vision and to move the

organization in new direction at times of uncertainity. This research article reveals that strategic

leadership has proven best results in Diversity Management. Furthermore, many global

companies insist their executives to be a strategic leader to lead the organization successfully.

Reference

Bernard M Bass,(2007), Executive and Strategic Leadership, International Journal of

Business 12(1)



Boal. K.B & Bryson J.M. (1988), Charismatic leadership: A phenomenological and

structural approach in J.G. Hunt, II, P Dachler &C.A Schieshem (Eds), Emerging

leadership Visas (pp 11-28), New York; Lexington

Burgehman .A & Grove A.S (1996), Strategic dissonance, California Management

Review, 38(2), 8-28

Elankov D.S. & Manov I.M. (2005), Top Management leadership and influence on

innovation. The role of socio-cultural context. Journal of Management, 31(3), 381-402

Falkenberg, A. W. (1997) Quality of live: efficiency, equity, and freedom in the U.S.and

Scandinavia. Journal of Socio Economics

Finkelstain S & D.C Hambruck (1996), Strategic Leadership: Top executives and their

effects on organizations, Minneapolls, West Publishing

Hitt M.A & B.W Keats (1992), Strategic Leadership and restructuring: A reciprocal

inter-dependence in R. L Phillips & J.G Hint (Eds). Strategic Leadership: A multi-

organization level perspective, Westport, CT, Quorum Books

Ireland R.D, & M.A Hitt (1999), Achieving and maintaining strategic competence in the 21st

Century. The role of strategic leadership. Academy of Management Executive, 13, 43-57

Kelly A Phipps & Mark E Burbach (2010), Strategic Leadership in the Non-Profit sector:

Opportunities for Research. Institute of Behavioral and Applied Management

Kinberly B. Boal & Robert Hooijberg,(2001), Strategic Leadership Research :

Moving on, leadership quarterly, 11(4), 515-549

Major Michael E. Phelps (1997), Understanding and managing diversity - The personnel

challenge for leaders, Air Command and Staff College,

Morrison, A. J. “Developing a global leadership model”, Human ResourceManagement,

Summer/Fall 2000, Vol. 39, Nos. 2 & 3, (117–131)

Priscilla Dike (2013), The impact of workplace diversity on organizations, Arcada University

of Applied sciences



A STUDY ON THE EFFECTIVENESS OF EMPLOYEE TRAINING AND DEVELOPMENT METHODS OF IT SECTORS IN CHENNAI

R.Divya1 Dr.M.Chandrasekaran2

Abstract Training is the act of increasing the knowledge and skill of an employee for doing a particular job much effectively. It is concerned with imparting specific job-related skill to the employee. It bridges the gap between what the employee has and what the job demands. The term 'Development' implies overall development in a person and as well as the organisation. The purpose of training is to increase efficiency and to promote versatility and adaptability to new methods and for a quality work.The Primary objective to study on the effectiveness of employee training and development methods at IT sector in Chennai and to study about the employees perception on training programs. The information technology (IT) and information technology enabled services (ITeS) industry has been one of the key driving forces fuelling India's economic growth Key words: ITeS - Information technology enabled services, On the Job training and Off the job training.

Introduction

Training and development play an important role in the effectiveness of organizations

and to the experiences of people in work. Training has implications for productivity, health and

safety at work and personal development. All organizations employing people need to train and

develop their staff. Most organizations are cognizant of this requirement and invest effort and

other resources in training and development. Such investment can take the form of employing

specialist training and development staff and paying salaries to staff undergoing training and

development. Investment in training and development entails obtaining and maintaining space

and equipment.

Employee training tries to improve skills, or add to the existing level of knowledge so

that employee is better equipped to do his present job, or to prepare him for a higher position

with increased responsibilities. However individual growth is not and ends in itself.

Organizational growth need to be measured along with individual growth.

Indian Information Technology Industry

The information technology (IT) and information technology enabled services (ITeS)

industry has been one of the key driving forces fuelling India's economic growth.

The industry has not only transformed India's image on the global platform, but also

fuelled economic growth by energizing the higher education sector (especially in engineering

1 Research Scholar, Department of MBA, Bharathidasan University , Coimbator. 2Head &Professor, Department of Management Studies Dhanalakshmi Srinivasan College of Arts & Science for Women.



and computer science). It has employed almost 10 million Indians and hence, has contributed a

lot to social transformation in the country. Indian organisations are turning to IT to help them

grow business in the current economic environment.

The Indian IT-business process outsourcing (BPO) sector, including the domestic and

exports segments, continue to grow from strength to strength, witnessing high levels of activity

both onshore as well as offshore. The companies continue to move up the value-chain to offer

higher end research and analytics services to their clients.

Training and Development at Indian Information Technology Industry

With this rapid expansion of IT sector and coming up of major players and new

technologies like SAP, the need of human resource development has increased.

According to the recent review by Harvard Business Review, there is a direct link

between training investment of the companies and the market capitalization. Those companies

with higher training investment had higher market capitalization. It clearly indicates that the

companies which have successfully implemented training programs have been able to deliver

customer goals with effective results. It shows that good training results in enhancement of

individual performance, which in turn, helps the organization in achieving its business goals.

Training is a tool that can help in gaining competitive advantage in terms of human resource.

With the growing investment by IT companies in the development of their employees

many companies have now started their own learning centers. As an example, Sun has its own

training department.

Accenture has Internet based tool by the name of “My Learning” that offers access to its vast

learning resources to its employees. Companies are investing in both the technical training,

which has always been an essential part in IT industry, as well as in managerial skills

development. Companies now kept aside 3-5% of revenue for training programs. As an example,

some of the major players like Tata Elexi and Accenture are allocating 7% and 3% respectively

of the company’s overall revenue.

Literature Review

The purpose of training is basically to bridge the gap between job requirements and

present competence of an employee. Training is aimed at improving the behaviour and

performance of a person. It is a never ending or a continuous process. Training is closely related

with education and development but needs to be differentiated from these terms.



Milkovich and Bureaou

Training is a systematic process of changing the behaviour, knowledge and motivation of

present employees to improve the match between employee’s characteristics and employment

requirements.

Nanda (`1976) conducted a study in ICF Chennai on training programme. He selected

respondents through accidental sampling.

Sethuraman (1974) studies the impact of short term training programme for supervisor. All 15

members and engineering unit Bangalore who had attended supervisory training programme

were interviewed.

Pauldavison conducted a study on HR development services at MRF in year 1982.The study

was conducted with some objectives.

Training has to be imparted to supervisor in following areas of Production, housekeeping,

supervisors lacked desired qualities in these areas.

Nathniel Sarkar (1988) conducted a study on HRD programme in BHEL; Trichy. Two

respondents were selected through simple random.

Raja Sekaran (1991) conducted study on the identification of training needs at BHEL.The study

revealed that the following areas have been identical by more than 50% of the respondents where

the need for training to develop their personality ,communication skills ,leadership qualities,

transaction analysis, industrial relations ,positive thinking and motivation are found essential.

L.A.Kennedysam (1994) conducted a study on HR development for executive at BHEL,Trichy

60% of the respondents were selected through systematic random sampling and finding of study.

Hamblin (1974) conducted a study on training programme at FORD.The feedback on the effects

of a training programme and to assess the value of training in the light of that information

According to Casse and Banahan (2007), the different approaches to training and development

need to be explored. It has come to their attention by their own preferred model and through

experience with large Organizations. The current traditional training continuously facing the

challenges in the selection of the employees, in maintaining the uncertainty related to the

purpose and in introducing new tactics for the environment of work and by recognizing this, they

advising on all the problems, which reiterates the requirement for flexible approach.

According to Davenport (2006), mentioned in his recent studies that it’s easy to

implement strategy with the internet supported software. Some of the Training theories can be



effective immediately on the future of the skill and developments. The “content” and the

“access” are the actual factors for the process. It is a representation itself by the Access on main

aspect what is effective to the adopted practice in training development.

A manager is that what the other members of the organization want them to be because it

is a very popular trend of development training for the managers in the training for the

management (Andersson, 2008, Luo, 2002). Most of the managers seem to reject a managerial

personality in support of the other truth for themselves (Costas and Fleming, 2009).

Penn State Harrisburgdefines The Training and Development profession focuses on

analyzing and improving employee learning and performance. It encompasses such activities as

performance analysis, training, career development, organization development, and program

evaluation.”

Need of the Study

Training and development is needed in Human resource to improve or develop additional

competency or skills in an employee on the job one currently holds in order to increase the

performance or productivity.

It is needed to help employees in achieving their personal goals, which in turn, enhances the

individual contribution to an organization.

Objectives of the Study

Primary Objective

To study on the effectiveness of employee training and developments methods at IT sector in

Chennai.

Secondary Objectives

To study about the employees perception on training programs

To analyse on the training needs and satisfaction of the employees and to find the best

method of training

To study the innovative new training methods adopted by the IT sectors in recent trend

Research Methodology

Research Methodology is the process used to collect information and data for the

purpose of making business decisions. The methodology may include publications, research,

interviews, surveys and other research techniques and could include both present and historical

information.



Research Design

A Research Design is the specification of methods and procedure for acquiring the information

needed. It is the overall operation pattern or the framework of the research that stipulates what

information is to be collected from which source by what procedure. It is also referred as the blue

print of the research process.

The research design was based on descriptive study. Descriptive research means of

obtaining information include the use of the questionnaire, personal interviews with the aid of

study guide or interview schedule.

Data Collection

Data collection is a term used to describe a process of preparing and collecting data.

There are two types of data collection:

Primary Data ( Original Source)

Secondary data ( reused data from other sorces)

The required data for the research is to be collected from primary data. The Secondary data can

be collected from Journals and Research article to support the research.

Area of study

The data has been collected from employees of various IT companies present inside Chennai. (

Infoysis, HCL, Accenture,TCS, CTS ,Mphasis ,Polaris ,IBM, WIPRO & DELL – Ten leading

IT companies in chennai )

Research Instrument

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents. The survey is to be

conducted through a questionnaire mode which comprises of 10 questions, that identifies the

strong feelings of the employees on the effectiveness of training and development methods.

Sampling

Sample design

The sample design is used in this study is probability sampling, sampling technique used is

random sampling.

Study population- The study population is 100.



Statistical Tools

The collected data is tabulated and analysed with some of the statistical tools listed – Percentage

Analysis, Bar Charts ,Line graphs , Chi-Square ,ANOVA and Factor Analysis etc

Limitation of the Study

The survey is subjected to the bias and prejudices of the respondents. Hence 100% accuracy

can’t be assured.

The research was carried out in a short span of time, where in the research could not widen

the study.

The study could not be generalized due to the fact that researcher adopted personnel

interview method.

This study is concerned with only women entrepreneurs in Chennai city only

Analysis and Interpretation

Table No.1 Designation of the respondents

No. Designation No. of respondents Percentage

1 Lower level 36 36 2 Middle level 48 48 3 Top level 16 16 Total 100 100

Interpretation

Table 1 shows the Designation of the respondents, among the 100 respondents, 36 percent of the

respondents are in lower level, 48 percent of the respondents are in middle level and 16 percent

respondents are in top level.

Table No.2 Training of the respondents

No. Training No. of respondents Percentage

1 Yes 89 89 2 No 11 11 Total 100 100 Interpretation

Table 2 shows whether the training is given for the present job or not. Among the 100

respondents, 89 percent of the respondents are given training for their present job, 11 percent of

the respondents were not trained for their present job.



Table No.03 Type of trainer gives your training

No. Types of Trainer No. of respondents Percentage

1 External 76 76 2 Internal 24 24 Total 100 100

Interpretation Table 03 shows 76% of the respondents’ type of trainer give your training and 24% are not aware

Table No.04 Training aids used

No. Training aids No. of respondents Percentage 1 Audio visual 31 31 2 Group discussion 20 20 3 Slides 16 16 4 Lectures 12 12 5 Practical session 13 13 6 All the above 08 08

Total 100 100 Interpretation

Table 04 shows how the training are aids used among the 100% respondents, 31% are training

audio visual, 20% are training group discussion, 16% are training slides, 12% are training

lectures, 13% are training practical session, 08% are training all the above.

Table No.05 Conducts training for the employees

No. Training No. of respondents Percentage 1 Performance 36 36 2 Experience 16 16 3 Employee attitude 32 32 4 Knowledge 16 16 Total 100 100

Interpretation

Table 05 shows how the organization conducts training for the employees among the 100

respondents, 36% say training improves performance, 16% say training increases experience,

32% say training increases employee attitude, 16% say training improves knowledge.



Statistical Analysis

Parameters strongly Agree

green

neutral

strongly disagree

strongly disagree

earn score Rank

Training programmer are conducted according to the requirements 7 6 4 4 1 .82 33

Safety measures are taught duringtraining programmers 1 5 3 3 0 .03 55

Training duration 6 7 5 4 0 .86 2 Training improves personal growth and development 9 6 3 3 1 .17 44

Knowledge gained for attending training 7 5 3 4 3 .98 11

Interpretation

From the above table it has been inferred that the employees are answered for the given attributes

and the weighted average, of weighted average and rank of weighted average. The attributes are

respondents opinion about the safety measures are taught during training programmer

weighted average of 4.031 and its rank of weighted average is 1st rank, the attributes are

respondents opinion about the training duration weighted average of 3.86 and its rank of

weighted average is 2nd rank, the attributes are respondents opinion about the training

programmer are conducted according to the requirements weighted average of 3.82 and its rank

of weighted average is 3rd rank, the attributes are respondents opinion about the improves

personal growth and development weighted average of 3.17 and its rank of weighted average is

4th rank, the attributes are respondents opinion about the knowledge gained for attending training

weighted average of 2.98 and its rank of weighted average is 5th rank.

ANOVA

Aim:

To find out whether there is any relation between quality of the training program

conducted and level of employees in IT industry.

Null Hypothesis [H0]

There is no significant difference exists among the respondents opinion about the factors

influencing training based on their designation

Alternate Hypothesis [H1]

There is significance different among the respondents opinion about the factors

influencing training based on their designation.



ANOVA

Factors Mean of Squares Df

Mean Square F P

Remarks

Explanation about the programmer organization.

Between Groups 080 1 .080 .043 .837 Significant Within Groups 9.600 1 1.867 Total 9.680 0

Satisfaction about the training programmer

Between Groups .780 1 5.780 .620 023 significant Within Groups 6.640 1 1.597

Total 2.420 0

Quality of the training material and training

Between Groups 500 1 .500 .307 .582 Significant Within Groups 8.080 1 1.627

Total 8.580 0 Technical Methodology

Between Groups 000 1 .000 000 .000 Significant Within Groups 6.480 1 1.593

Total 6.480 0 Communication Between Groups .280 1 1.280 693 409

Significant Within Groups 8.720 1 1.848 Total 0.000 0

Trainee involvement and participation

Between Groups .480 1 6.480 .935 .043 Significant

Within Groups 9.040 0 1.647 Total 5.520 1

Training aids between Groups

.014 1 671 515

673

Significant Within

groups 2.969 0 .303

Total 4.983 1 Involvement in the training programmer

between Groups

.050 1 263 .176 322 significant

Within groups

2.283 0 233

Total 3.333 1 The significance difference exists in the opinion of the respondents about the influencing factors

on training. From the obtained values it is inferred that there is no significance difference exist in

the opinion of respondents about the Working conditions ,explanation about the programmer

organization, quality of the training material and training, communication, training ,



involvement in the training programmer, training There is significance difference exist about the

satisfaction about the training programmer trainee involvement and participation. Since the

obtained values are less than 0.05.

Findings

The major findings are:

36% of the respondents are intermediates

16 % respondents are in top level.

89 % of the respondents are given training for their present job

76% of the respondents’ type of trainer gives your training

32% are training employee attitude

20% are training group discussion

Suggestions & Recommendations

Training should be conducted according to the employees reads.

Trainer, training place, training methods, trainee are the major things that should be

considered while conducting the training program.

More improvement in latest knowledge should be added in the training program.

The in-house training programmer can be improved by inviting faculties from various

business schools or mostly from various private agencies for conducting training

programs for the employees.

Visual & audio type of training must be followed, as it won’t be getting bored for the

employees than lecture type.

Proper knowledge management system must be followed and also check whether the

system is useful for the employees or not.

Conclusion

The paper attempted to study the effectiveness made on training and development programmes

on employees by IT organisations in Chennai. It will also help to analyse the various methods

adopted by IT sectors. Training and Development programmes help in motivating employees and

creates a team spirit within the organisation.

Bibliography

1. Armstrong, M. (2006).A Handbook of Human resource Management Practice, Tenth

Edition, Kogan Publishing, London, p. 264



2. George, J.M. and Jones, G.R. (2008).Understanding and Managing Organizational

behaviour, Fifth Edition,

3. Luthans, F. (1998).Organizational Behaviour, 8 Editions, McGraw-Hill/Irwin, Boston, p.

147

4. Mullins, J.L. (2005). Management and organizational behaviour, Seventh Edition,

Pearson Education Limited,

WEBSITES:-

1. www.managementparadise.com

2. www.hrsite.com

3. www.google.com

4. www.managementjunction.com

5. www.naukrihub.com



CONTEMPORARY HUMAN RESOURCE PRACTICES IN CEMENT INDUSTRY

V.Purendra Prasad1 Prof.M.Muthyalu Naidu2

Introduction Human resource had been an important factor of production. It is the only active factor of

production that can employ other factors in the best possible manner. Every organization

operates by combining resources both material and non material resource. HRM is concerned

with the people’s dimension in management. Every organization is made up of people acquiring

their services, developing their skills, motivating them to high levels of performance and

ensuring that they continue to maintain their commitment to the organization, referred to as

human resource management.

The main purpose of this study to examine the contemporary hr practices implementing in the

cement industry.

Contemporary human resource practices

High performance work systems: Creating high performance work systems is one change in

what human resource management does a focus on productivity and performance. High

performance work systems is an integrated set of human resource management policies and

practices that together produce superior employee performance .

A) Selective hiring. B) Employee security. C) Self managed team. D) Emphasis on high quality of work.

1. Knowledge work human capital: Knowledge, education, training, skills and of a firms

workers considered called a human capital.

2. Tele commuting or work from home: Tele work is work arrangement in which employees

do not commute to a central place of work. Many telecommuters work from home, while

others sometimes called ‘nomad workers ‘use mobile, tele communication technology.

3. Flexi time: A work schedule in which employees workdays are built around a care of

midday hours , and employees determine within limits, what other hours they will work

1 Research Scholar, Skim, SK University, Anantapuramu. 2 Research supervisor



1. Recruitment and selection

E- recruitment: E-recruitment is the process of personnel recruitment using electronic

resources; in particular the internet. Companies and recruitment agents have moved much of

their recruitment process online so as to improve the speed by which candidates can be matched

with live vacancies.

Social recruiting: social recruiting is the process of sourcing or recruiting candidates through

the use of social platforms or advertising channels such as face book, Google, twitter, job boards,

employee referrals.

Head hunting process: it is a process where the recruiters identify approach specific individuals

for jobs. The company will hunt for the need of a specific person.

Recruiting through internet: most people today go online to look for jobs. One survey found

that on a typical day, more than 4 million people turn to the web looking for jobs.

2. Training and development

E-learning: E-learning is broadly inclusive of all forms of educational technology in learning and teaching. E-learning is inclusive of with multimedia learning, technology enhanced learning, and computer based instruction, virtual learning environments.

Tele training: Tele training is training that

1. Usually conveys live instruction via tele communication facilities

2. May be accomplished on a point –to- point or a point –to- multipoint basis and

3. May assume forms including tele seminars, tele conferences electronic classrooms, including both audio & video.

Training through management games: Training games started in 1995, with the initial

objective of developing games & simulations to make training routinely more effective

experience but also more entertaining. We still have the capacity to develop new products and to

custom design courses.

3. Performance management

Electronic performance management: it means “having supervisors electronically

Monitor the amount of computerized data an employee is processing per day, and there by his

Or her performance.

Web-based performance management: This type of performance management generally



Enable managers to keep computerized notes on subordinates during the year, and then to

Combine these with ratings of employees on several performance traits. The software program

Then generate written text to support each part of the appraisal. 540 degree performance

management: This performance management adds more external customers and suppliers.

4. Compensation management

Competency based pay: competency based pay means the company pays for the employees

range, depth, and type of skills and knowledge, rather than for the jobs title he or she holds

experts variously call this competence, knowledge or skilled based pay.

Profit sharing plan: A plan whereby employees share in the company’s profits. Profit sharing

plans in which all or most employees receive ashare of the firm’s annual profits. Profit sharing

plans boost productivity and morale.

Automating compensation administration: when all the firms managers review employee’s

performance and match these budgetary constraints and formulate pay raise recommendations.

5. Employee safety management

Safety training: safety training is another way to reduce unsafe acts especially for new

Employees. Company trainers should instruct them in safe practices & procedures. Reduce

unsafe conditions: reduce unsafe conditions is always an employer’s first line of Defense in

accident prevention, safety engineers should design jobs so as to remove or reduce Physical

hazards. Employers increasingly use computerized tools to design safety equipment Behavior

based safety conditions: It means identifying the worker behaviors that contribute to Accidents

and then workers to avoid these behaviors.

Conduct safety & health audits: reducing unsafe acts is no substitute for eliminating Hazards

.managers should therefore routinely inspect for possible problems using checklist As aids.

Review of literature

Recruitment and selection- Udeshi K.J (1960) has done a study on recruitment and selection

plan for cement Industries. Stressing the need for carrier path for employees and suggested that

objective of carrer path is to develop every officer in to confident, efficient and knowledgeable

incumbent of the present job as also to enable Him to realize his/ her maximum potential.

Officers should make full use of the opportunities’ that exists for meaningful learning when an

officer is performing his job. After he has availed of on the job training he should be provided

with institutional training and to reinforce this learning by proper Placement.



Gannon (1971) examined the relationship between several Methods by which individuals heard

about job openings and voluntary turnover? Among his Findings, individuals who were referred

by a current employee or who had applied directly (“Walk-ins”) without knowing if there

werejob openings were Less likely to quit than Individuals who responded to job advertisements

or who Were referred by an employment Agency

Surya Narayana (1974) has done a study on recruitment and selection in Allahabad Bank. The

researcher says that till 1976 no direct recruitment of officers was permitted in Allahabad bank.

Thereafter as per the government Directives up to 25 percent of the officer vacancies are being

filled through direct recruitment.

While Gorter and Ommeren (1994) pushed the analysis one steps further. The authors

concluded that two main recruitment strategies can be identified: a sequential use of search

Channels, in which the first search channel chosen is Usually the informal channel and

Additional search channels are activated one After the other; and an “adding to the pool

“Strategy in which the first search Channel chosen is basically advertisement and later one or

more search channels Are activated in order to enrich the pool of available applicants.

Calif reported by Starcke (1996), also projected growth in Internet Recruiting. The firm's

research showed that of 210 companies polled in phone Interviews, 93per cent say they expect to

use the Internet more intensively for Recruiting in the future. The Austin Knight survey also

showed two-thirds of the Companies surveyed consider the Internet more cost-effective than

most or all other available recruitment methods. Companies that had used the Internet Longer or

posted more jobs rated the Internet's cost effectiveness higher than did other firm.

Mencken & Winfield (1998) had explored the advantages and disadvantages of informal and

Formal recruiting practices in external labor markets. The data was analyzed from

1981Metropolitan Employer-Worker Survey (MEWS). Based on random-digit-dial telephone

survey of 2,713 adults, the authors had constructed seven dichotomous dependent variables. The

empirical analysis of their study found that quality was the stronger motivator than cost for

informal Recruiting, hiring managers viewed the volume of applicants as the central Advantage

of formal recruiting techniques and the employment agencies were seen as having the advantages

of both informal and formal recruiting—high Quality and large volume. At the same time,

authors also found that cost made Employment agencies less attractive to hiring managers for

whom quality rather Than volume was the primary concern.



Bartram (2000) presented a snapshot of Internet development as recruitment and selection

medium. He examined the role of the Internet within a traditional Recruitment cycle. At the so-

called “attraction stage,” he wrote, the Internet helps to draw people into a large pool by

providing a virtual stage for a job posting.

Kinder (2000) examined a new model for decomposing e-commerce. The paper suggested that

use of the Internet in recruitment processes is likely to change The Interface between internal

and external labor markets for many firms. The Paper predicted that the conceptions behind

current research programs in labor Market theory may require rethinking in the Internet era.

Training and development

S.K. Bhatia (1967) discussed the main objectives of training &development in cement industry.

He Suggested a shift from knowledge to attitude while designing the training programmers He

identified three areas of training, technical skills, knowledge of organization and external

systems, conceptual and inter personnel skills. The emphasis on different skills should vary with

the type of employees.

Dr.Nadler, Carroll and Jones (1970) have used the term “HRD” mainly referring to training,

education and development. According to them is focused On the present job education and the

future job and development is concerned With providing learning experiences to employees so

that they may be ready to Move to new directions and dimensions that the organizational change

Requires.

NARASIMHAN K (1989) conducted a study at Hindustan aeronautics Hyderabad. It has

been conducted that HRD facilities technology Improvements through training and development.

Training and Development has not only yielded tangible benefits of increased Productivity but

intangible Benefits of increased working Relationships such as positive attitude towards Change,

increased Motivation to take up newer jobs, higher involved in work and in the Organization and

pride of work.

Anglin (1995) compiled the discussions of leading professionals in the field of Instructional

Technology. The contents of the discussions were instructional Designs, research and evaluation

in Instructional Technology, future prospects for instruction technology and professional

development in the field of Instructional Technology. All discussions rated positivism towards

the Effectiveness of Instructional Technology



McLagan PA (1989) an ASTD (AMERICAN SOCIETY FOR TRAINING AND

DEVELOPMENT) sponsored study by pat Mc Lagan sought to identify the hr roles and

competencies HRD function. This study documented A shift from the more traditional training

and development topics to a function That included career development and organization

development issues.

Compensation management Schwab (1980) being strategic about compensation implies support of the Business strategy and

sensitivity to anticipated environmental pressures. But such a general characterization does not

provide much leverage for Research or theory building nor does it offer much guidance for

managing Compensation. And the folly of undertaking research based on poorly defined

constructs is well recognized.

Lawler (1981) while not the longest is perhaps the most inclusive. It includes the market

position (level of pay relative to competitors) internal versus external Orientation, hierarchy (the

steepness of the pay structure and the basis, job versus skills - for the pay structure reward mix,

and the basis of rewards (Performance versus seniority, groups versus individual, criteria used,

etc).

Dyer (1985) the term strategy is often used to refer to everything considered Important. The

danger is that if it refers to everything, it may mean nothing. Generally, strategy refers to the

overarching, long-term directions of an Organization that is critical to its survival and success.

Strategies take Advantage of the opportunities’ and threats in the external environment by

marshaling internal resources in some coherent, consistent direction.

Gehart and Milkovich (1992) in his own analysis says compensation management is all about

developing a positive employment relationship and psychological contract that adopts a total

compensation approach This recognizes that there are a number of ways in which people can be

Compensated.

Brown (2003) sees compensation as a return in exchange between their Employees and

themselves as an entitlement for being an employee Of the organization or as a reward for a job

well done .employees pay does Not depend solely on the jobs they hold.

Anyebe (2003) the task in compensation administration is to develop policies and the terms of

attracting, satisfying, retaining and perhaps motivating Employees.



Armstrong (2005) stated that compensation management is an integral part of Human resources

management approach to productivity improvement in the Organization. It deals with the design,

implementation and maintenance of Compensation system that are geared to the improvement of

organization, Team and individual performance

Safety Management

IN 1970, ‘Occupational Safety And Health Act, (OSHA) ‘was passed in United States of

America as a comprehensive national Safety law, safety took a new direction and meaning as

result of (OSHA). Similar steps were followed by other countries, such as United Kingdom

(health and safety at work act, 1974), Australia (Victoria occupational health and safety act,

1985)

Powell and Canter (1985) observed that “more than half of the Industrial accidents are

attributable to deficiencies in the human and management component than to unforeseeable

weakness in the Technical component “these findings prompted further studies to Improve safety

management in iron and steel industry.

Dumas (1987) discovered that programmes of quality and Programmes of safety have similar

components. He concluded” safety is a dimension of quality, after everything, the elimination of

defects includes the elimination of practices of unsafe work.”

Gupta (2002) points out the major causes of this accident as, Indifferent attitude of the

management towards safety and lack of Enforcement of existing regulations by regulatory

bodies. Learning Lessons from Bhopal disaster, most of the industrial organizations In India has

made considerable investments in safety related Infrastructure, equipment and training.

Enforcement rules and Regulations also been made more stringent with number of Amendments

in the acts and rules.

Glendon and McKenna (1995) suggest that organizations with a positive Safety Cultures are

characterized by effective communication. Such Communication is Founded on shared beliefs of

the importance of safety and Mutual trust as well as Confidence in effectiveness of preventive

measures.

Cox and Oliver (1999) also found that management influenced work force Appraisals o f

commitment across manufacturing, dairy produce, Transportation. Management also consistently

influenced training across three Industries but only influenced workforce personnel actions &



responsibility In the manufacturing and diary produce materials. As well as providing insight in

to the role of management in work place safety.

Tomas, Melia, and Oliver (1999) found that supervisors played an important Role in the

accident prevention process by transferring the elements of safety Climate to members of the

workforce. Evidence for this came from support For a tested model in which the casual chain ran

from the “safety climate” to “Supervisor response” to “co-workers response “to “worker

attitude” and then to “safety behavior”, “risk and finally “accidents. Finally from a Study in the

steel industry.

Thompson et al. (1998) suggests that senior managers support Safety through indirect means

such as establishing safety policies and Procedures, setting Production goals etc.. While

supervisors act as the link between management and shop floor, they monitor worker compliance

to safety and provide feedback to workers concerning their Behavior.

Need For the Study

Human resource management is very important in all organizations. The Creative abilities,

capacities and knowledge of human resource is very important in case of manufacturing industry

especially in Cement industry Human resource practices are very important forGoodproductivity.

Cement Companies play an important role ‘In development of nations. Huge Competitions are

there for cement Companies, so cement companies need to adopt new trends in Human resource

practices for expanding the market globally. Human resource practices have to be viewed as a

dynamic process, which need to be kept aligned with the changing realities in the Environment.

The underlying emphasis, in human resource Practices, therefore would be Work for the

appropriate fit between Work and people from time to time. From the above literature it has been

found that many of the studies have concentrated on conventional human resource practices such

as recruitment and selection, training and development, performance management,

Compensation management, employee safety management, employee Empowerment, industrial

relations, welfare and labor laws management, etc.

Most of the studies are in the area of financial Management, marketing management is very

limited that limited studies are found in the area of human resource management. Moreover in

the area of human resource management also much of the research has been undertaken on

industrial relations, welfare and labor law management, Training and development, employee

retention, performance management, Wage and salary administration etc. Very few studies have



concentrated on Contemporary human resource practices like e-recruitment, tele –recruiting,

Internet based training, virtual classroom training, benchmarking, and 540 Degree performance

appraisal, safety training, competency based salary, Work from home, flexi timings. Hence the

present study has been undertaken on such “contemporary human resource practices” in Indian

cement industry.

Research Method

Sampling Method

The sampling method choosed for this study is stratified random Sampling. The size of sample

amongst 30 % of total population in Ultratech cements Pvt .ltd Company. Table: 1 Details of sample

Employee strength Company Executives Field staff Frontline

executives Total Sample

Chosen (30%)

Total Sample (30%)

Total Sample (30%) Total Sample

(30%) Ultratech cement

218 65 168 51 242 72 628 188

Data Analyis: The data is analyzed by calculating, mean Score method and for testing hypothesis

chi-square statistical tool has been applied with the help of SPSS.

Results And Discussion

Table-2 Recruitment And Selection

S.no

Companies

I am aware e-recruitment practice in our organization

Total

Strongly agree

Agree Uncertain

Disagree Strongly disagree

1 Ultratech limited Cement Company

7 116 57 7 1 188 3.7% 61% 30.0% 3.7% 0.53% 100%

Source: Field data Inference

From the above table we can observe that 61% of respondents have aware about e-recruitment

process in the organization. So the organization is providing awareness of contemporary hr

practices.



Table-3 Recruitment and Selection

S.No

Companies

I am not satisfied with the Tele-recruiting practice in our organization

Total

Strongly agree

Agree Uncertain Disagree Strongly disagree


5 27 107 46 3 188 2.6% 14.3% 56.91% 24.4% 1.5% 100%

Source: Field data

Inference

From the above table we can observe that 56.91% respondents are not satisfied with the Tele-

recruiting process in the organization. So the organization need to satisfy the Employees by

providing guanine recruiting process.

Table: 4 Recruitment And Selection

S.N

Companies

Our organization recruits through internet by online recruiting selects the right person

Total

Strongly agree

Agree Uncertain Disagree

Strongly disagree


29 23 23 86 27 188 15.4% 12.2% 12.2% 45.7% 14.3% 100%

Source: Field data Inference

From the above table we can observe that 45.7% respondents are disagreeing with the

organization online recruiting process.


S.N

Companies

I am aware of human resource information system to improving productivity in our organization

Total

Strongly agree

Agree Uncertain Disagree Strongly disagree


51 23 41 32 41 188 27.12% 12.2% 21.8% 17% 21.8% 100%

Source: Field data



From the above table we can observe that 27.12% strongly agree with the human resource

Information system to improving productivity in the organization.


S.N

Companies

Our organization provides implements phone and video interviews to select the candidate

Total

Strongly agree

Agree Uncertain



37 31 29 51 40 188 19.68% 16.48% 15.42% 27.12% 21.27% 100%

Inference

From the above table we can observe that 27.12% disagree with implements phone and Video

interviews to select the candidate in the organization.

Table: 7 Training And Development

S.No

Companies

I am aware of internet based training provides to the employee in the organization

Total

Strongly agree

Agree Uncertain



27 30 52 46 33 188 14.3% 15.95% 27.6% 24.46% 17.55% 100%

Inference

From the above table we can observe that 27.6 % uncertain or not known about internet.

Based training provides to the employee in the organization.


S.N

o

Companies

We have audio-visual based training in our organization

Total

Strongly agree

Agree Uncertain



27 36 43 57 25 188 14.36% 19.14% 22.87% 30.31% 13.29% 100%

Inference

From the above table we can observe that 30.31% are disagree about audio-visual training

in the organization.




S.No Companies

Our organization provides virtual classroom to

enhance training and development Total

Strongly agree

Agree Uncertain



28 32 53 46 29 188 14.89% 17.02% 28.19% 24.46% 15.42% 100%

Inference

From the above table we can observe that 28.19 % are not known about virtual Classrooms

enhance training and development practices being implemented in the Organization.


S.No Companies

Our organization provides video conferences, tele training to the employees

Total

Strongly agree

Agree Uncertain



34 36 43 49 26 188 18.08% 19.14% 22.87% 26.06% 13.83% 100%

Inference

From the above table we can observe that 26.06% are disagree about video conferences, tele –

conferences to the employees provided in the organization.


S.No Companies

Our organization provides training matches the job requirements and employs present specifications

Total

Strongly agree

Agree Uncertain



23 30 47 49 39 188 12.23% 15.95% 25% 26.06% 20.7% 100%

Inference

From the above table we can observe that 26.06% are disagree that the organization provides

training matches the job requirements and employees present specifications.



Conclusion

The study on “contemporary human resource practices in the cement industry” has been

examined in the Ultratech cement Ltd Company. So overall in the cement industries

Contemporary practices are not implementing properly compared with software Companies.

This report described the 10 contemporary practices result by asking Questions to the selected

employees in the organization.

References

1. Agarwala, Tanuja (2002), “Innovative Human Resource Practices and HRD climate: A

comparison of automobile and IT industries,” in pareek, osmangani, Ramanarayan & Rao T.V.

(Eds), Human Resource Development in Asia, New Delhi: Oxford & IBH: 3-10. 2. Aquinas P.G. (2006) “Human Resource Management” Vikas publishing house New Delhi1 3. Rattans Reddy.B (2007). “Effective Human Resource Training and Development strategy

“Second Revised & Enlarged Edition, Himalaya Publishing House. 4. Alan Clardy (2008) “Human Resource Development and the Resource – Based Model Of core

competencies: methods for diagnosis and assessment “, Human Resource Development Review,

Vol .7.no. 4, p387-407 (2008)



CORPORATE GOVERNANCE AND ORGANIZATIONAL EFFECTIVENESS

Dr.K.Ramachandra1 Lakshmamma.H.R2

Abstract Corporate Governance is a system of structuring, operating and controlling a company with a view to accomplish long term strategic goals to satisfy its shareholders, creditors, employees, customers and suppliers. The paper mainly focus on the various facets, corporate governance committees in global level, corporate governance in India. The paper concludes that The efforts of the government and the empowered regulator should be ably supplemented by an attentive and vigilant stakeholder’s community. The stakeholders should complement the efforts of the government and the regulator. If they do, they will have rendered service to the country. It is tread toward economic prosperity. Keywords: Corporate Governance, Committees, CEO`S, Mechanism, Concept, Guidelines.

Introduction to Corporate Governance

Corporate Governance in India has evolved mainly over the last 10 years, just as it evolved over

the world. During this period, the Indian economy opened up, mergers and acquisitions took

place and foreign investors started evincing interest in Indian companies. The first formal

Corporate Governance initiative in India came in 1998. When confederation of Indian Industry

(CII) came out with a “Desirable Code of Corporate Governance”. Later Securities and

Exchange Board of India (SEBI) appointed a committee under the chairmanship of Kumar

Mangalam Birla, noted industrialist recommend appropriate Corporate Governance regulations

for Indian Companies. This committee submitted its report in early 2000. Based on the

recommendations of this committee, SEBI mandated introduction of new Corporate Governance

provisions in the Listing agreements with Stock Exchange, Popularly known as clause 49 which

took effect from March 31, 2001.

The provisions of clause 49 prescribed guidelines on areas such as Board composition and

directors, independence criteria, Audit committee- powers , role and responsibilities, Board

procedures, Directors Compensation, Management Discussion and Analysis, various disclosures.

Clause 49 was amended in October 2004 and the amendments were finally effective from

December 31.2005. The important changes were new provision pertaining to code of conduct,

review of subsidiary companies, risk management, review of related party transactions. Schedule

1 HOD of commerce and management, Maharani’s Art’s, Commerce & Management college for women, Bangalore . 2 Research Scholar, Dravidian University, Kuppam, A.P.



assessment of non – executive directors, constitution of remuneration committee, whistle blower

policy etc.

Effective Mechanisms of Good Corporate Governance

As per research conducted by Department of Trade and Industry and Kings college, London

there are 18 Drivers of good corporate governance

1. Board Independence.

2. Diversity, human and social capital within the board.

3. High engagement in board processes.

4. Presence of large block shareholders.

5. Shareholders activism.

6. Breadth and depth of public information disclosure.

7. Breadth and depth of private information sharing.

8. Independence of the external auditors.

9. Competence of the audit committee,

10. Presence of internal control systems and support of whistle blowing

11. Long term performance –related incentives.

12. Transparent and independent control of the remuneration committee.

13. An active market for corporate control.

14. Transparency and protection for shareholders and stakeholders during mergers and

acquisitions.

15. Board powers in takeover bids, subject to shareholders veto

16. Shareholders involvement with corporate governance.

17. Voice mechanisms for debt holders.

18. Employee participating in financial outcomes and collective voice in decision making

The Concept of Corporate Governance

The system which aids the management to direct and control the company to the

best interest of its shareholders and other stakeholders, ascertain better financial reporting and

more transparency is called Corporate Governance. Corporate Governance was defined by the

Cadbury Committee as “ The system by which an organization is directed and controlled , at its

most senior levels in order to achieve its objectives and meet the necessary standards of

accountability and profitability”.( Cadbury Report,1992)



Corporate Governance is a system of structuring, operating and controlling a company with a

view to accomplish long term strategic goals to satisfy its shareholders, creditors, employees,

customers and suppliers.

The various Facets of Corporate Governance are.

Corporate Governance Committees

a) Cadbury committee – 1992 The stated objectives of the Cadbury Committee was “To help raise the standards of corporate

governance and the level of confidence in financial reporting and auditing by setting out clearly

what it sees as the respective responsibilities of those involved and what it believes his expected

of them. The committee investigated the accountability of the board of directors to shareholders

and to society.

b) The Paul Ruthman Committee The committee was constituted later to deal with the said controversial point of Cadbury

Report. It watered down the proposal on the grounds of practicality. It restricted the reporting

requirement to inner financial controls only as against “the effectiveness of the company’s

system of internal control” as stipulated by the Code of Best Practices contained in the Cadbury

Report.

c)The Greenbury Committee This committee was setup in January 1995 to identify good practices by the Confederation of

British Industry (CBI), in determining directors’ remuneration and to prepare a code of such

Facts of Corporate

Governance

Directors Responsibilites

Disclosures

Shareholdres Grievance

Committee

Audit Committee

Remuneration Committee

Corporate and Financial Reporting



practices for use by public limited companies of United Kingdom. The committee intended to

provide an answer to the general concerns about the accountability by the proper allocation of

responsibility for determining directors’ remuneration, the appropriate reporting to shareholders

and greater transparency in the process.

d) The Hampel Committee The Hampel committee was setup in November 1995 to promote high standards on Corporate

Governance both to protect investors and preserve and improve the standing of companies

listed on the London Stock Exchange. The committee developed further the Cadbury report.

And it made the following recommendations.

i) The auditors should report on internal control privately to the directors.

ii) The directors maintain and review all controls.

iii) Companies should time to time review their need for internal audit function and control.

e) The Turnbull Committee The Turnbull Committee was set up by the Institute of Chartered Accountants in England and

Wales (ICAEW) in 1999 to provide guidance to assist companies in implementing the

requirements of the Combined Code relating to internal control. The committee provided

direction to assist companies in implementing the requirements of the Combined Code relating

to internal control. It recommended that where companies do not have an internal audit function,

the board should consider the need for carrying out an internal audit annually. The committee

also recommended that board of directors confirm the continuation of procedures for evaluation

and managing key risks.

Corporate Governance: History in India

The They have been several major corporate governance initiatives launched in India since the

mid-1990s.The first was by the Confederation of Indian Industry (CII),India’s largest industry

and business association, which came up with the first voluntary code of corporate governance

in 1998. The second was by the SEBI, now enshrined as Clause 49 of the listing agreement. The

third was the Naresh Chandra Committee, which submitted its report in 2002. The fourth was

again by SEBI — the Narayana Murthy Committee, which also submitted its report in 2002.

Based on some of the recommendation of this committee, SEBI revised Clause 49 of the listing

agreement in August 2003.Subsequently, SEBI withdrew the revised Clause 49 in December

2003, and currently, the original Clause 49 is in force.



• Kumar Mangalam Birla committee report and Clause 49

A committee under Kumar Mangalam Birla to promote and raise the standards of good

corporate governance. In early 2000, the SEBI board had accepted and ratified key

recommendations of this committee, and these were incorporated into Clause 49 of the Listing

Agreement of the Stock Exchanges. This report pointed out that the issue of corporate

governance involves besides shareholders, all other stakeholders. The committee’s

recommendations have looked at corporate governance from the point of view of the

stakeholders and in particular that of shareholders and investors.

• Naresh Chandra Committee Report

The Naresh Chandra committee was appointed in August 2002 by the Department of Company

Affairs (DCA) under the Ministry of Finance and Company Affairs to examine various

corporate governance issues. The Committee submitted its report in December 2002. It made

recommendations in two key aspects of corporate governance: financial and non-financial

disclosures: and independent auditing and board misunderstanding of management. The

committee submitted its report on various aspects concerning corporate governance such as

role, remuneration, and training etc. of independent directors, audit committee, the auditors and

then relationship with the company and how their roles can be regulated as improved.

• Narayana Murthy Committee report on Corporate Governance The committee was set up by SEBI, under the chairmanship of Mr. N. R. Narayana Murthy, to

review Clause 49,and suggest measures to improve corporate governance standards. Some of

the major recommendations of the committee primarily related to audit committees audit

reports, independent directors, related party transactions, risk management, directorships and

director compensation, codes of conduct and financial disclosures.

• Corporate Governance voluntary guidelines 2009 More recently, in December 2009, the Ministry of Corporate Affairs (MCA) published a new

set of “Corporate Governance Voluntary Guidelines 2009”, designed to encourage companies

to adopt better practices in the running of boards and board committees, the appointment and

rotation of external auditors, and creating a whistle blowing mechanism.



Conclusion

Thus, attempts have been made by the government and the empowered regulator to usher in

corporate governance principles for the welfare of the various stakeholders in the enterprise. The

efforts of the government and the empowered regulator should be ably supplemented by an

attentive and vigilant stakeholder’s community. The stakeholders should complement the efforts

of the government and the regulator. If they do, they will have rendered service to the country. It

is tread toward economic prosperity.

Bibliography Arora, Ramesh K, and TanjulSaxena (eds), Corporate Governance Issues and Perspectives;,

2004.

Bajaj.P.S. and Raj Agarwal, Business Ethics; An Indian Perspective; New Delhi, 2004.

Balachandran, S. Managing Ethics, Sangeath Associates, 1996.

K.Aswathppa, Essentials of Business environment, Himalaya Publishing House, Mumbai,

2001.

Journals And Articles

Balasubramanian, N., ‘’Changing Perceptions of Corporate Governance in India’’, ASCI

Journal of Management, Vol.27 (1&2).

Chang, S.J. and Daesung Ha, ‘’Corporate Governance in 21st Century’’, American Business

Review, 2001.

Gollanapalli, Sarath,’’ Corporate Governance Global Perspective, Effective Executive’’, 2003.

Web Resources

www. businessweek.com

www. cipe.org

www.mamma.com

www.altavista.com

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