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CHAPTER - V FINDINGS, SUGGESTIONS AND CONCLUSIONS 5.1 Introduction This chapter deals with the summary of the study, followed by the discussions and the implications for the future policy development, curriculum design and implications for future research considerations. Firstly, the background of the study will be presented, followed by the discussions of the findings. Implications are drawn followed by the conclusion to the study. This study was attempted with the primary purpose of understanding the skill gaps across select industries in the twin cities of Hyderabad and Secunderabad. They are (i) Financial Services, (ii) Manufacturing Sector, (iii) Process Industries, (iv) Service Sector, (v) IT/ITES, and (vi) Research & Development. For the purpose of the analysis and comparison the select forms have been discussed in six sections. 5.2 Summary of the findings All the results presented in the previous chapters have been presented in brief as a summary in the following sections.

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Page 1: FINDINGS, SUGGESTIONS AND CONCLUSIONSshodhganga.inflibnet.ac.in/bitstream/10603/25154/11/11... · 2018-07-09 · FINDINGS, SUGGESTIONS AND CONCLUSIONS 5.1 Introduction This chapter

CHAPTER - V

FINDINGS, SUGGESTIONS AND CONCLUSIONS

5.1 Introduction

This chapter deals with the summary of the study, followed by the

discussions and the implications for the future policy development, curriculum

design and implications for future research considerations. Firstly, the

background of the study will be presented, followed by the discussions of the

findings. Implications are drawn followed by the conclusion to the study.

This study was attempted with the primary purpose of understanding

the skill gaps across select industries in the twin cities of Hyderabad and

Secunderabad. They are (i) Financial Services, (ii) Manufacturing Sector, (iii)

Process Industries, (iv) Service Sector, (v) IT/ITES, and (vi) Research &

Development.

For the purpose of the analysis and comparison the select forms have

been discussed in six sections.

5.2 Summary of the findings

All the results presented in the previous chapters have been presented

in brief as a summary in the following sections.

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5.2.1 Drivers of future skill needsi. The organisation under study were found involved in activities like

(a) processing goods and services to the common people

(b) focus on R&D and

(c) administrative office only.

ii. The current financial turnover being one of the drivers of skill needs.

The study highlighted the fact that in all the sectors of business, the

turnover had significantly increased, indicating increased level of

activities and consequent use of skilled workforce.

iii. Majority of all the sectors were found being the major players in the

market; and are further found operating in the competitive markets.

iv. A Majority were found involved in new product development as it is

considered crucial for survival in the future.

These findings indicate the dynamic environment of the sectors under

study.

5.2.2 Skill Acquisition Barriers

This study brought to light certain barriers to skill acquisition in the

selected sectors of business.

i. Surprisingly, majority of the executives were of the opinions that the

applicants lack motivation or right attitude towards work irrespective of

the sector of business.

ii. It was also found that a large majority of the executives were of the

opinions that the applicants for jobs in their companies lack adequate

qualifications.

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iii. Similarly, a large majority of executives were of the opinions that the

applicants for the jobs in their companies lack relevant experiences,

besides relevant skills irrespective of the sector of business to which

they belong.

iv. As regards ability to pay according to market rates for attracting talent

a large majority of the executives are of the opinion that their

companies are having the ability to pay according to the market rates.

v. It was also found that a large majority of executives stated that in

respect of certain operations though it is hard to fill the vacancies, it is

not because of the shift system or because of unsocial working hours

such as night shifts etc.

vi. Another reason for not filling the vacancies as majority of the

executives stated is that applicants are unwilling to work for the market

rates. Similarly they are also having the opinion that they lack adequate

resources for effective recruitment.

vii. A majority of the executives are also of an opinion that one of the

reasons for not filling the vacancies is that, the applicant are reluctant

to relocate to other cities, besides poor career progression being

another reason.

viii. A majority of them though said that seasonal work is not the reason,

applicants lacking right attitude or motivation being reason for not filling

the vacancies.

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5.2.3 Skill Profiles

In this section findings relating to executives opinions about the levels

of skills that are needed in their companies sector wise have been presented.

i. With regard to level of numeracy skill needs, large number of the

executives, irrespective of the sector which they belong were of the

opinion that their employee numeracy skill was either basic or

intermediate.

ii. On the contrary with regard to level of literacy majority of them were of

the opinion that such literacy level should be high.

iii. A majority of them were of the opinion that the language skills of their

employees are expected to be high, surprisingly including

manufacturing sector.

iv. As regards the trade/process skills, it was found that a good number of

them were of the opinion that their employees are expected to have

high or advanced, skill level in this area.

v. With regard to the problem solving skills, a large majority of the

executives are of the opinion that they expect such skill to be high.

vi. Communication skills requirements were considered to be high as

majority of the executives opined. Some of them even wanted such

skills to be advanced.

vii. As ability to follow instructions is an important skill, a majority of

executives said that such skill is highly expected, followed by around

one forth of them wanted such skill to be advanced.

viii. IT skills were found either basic or high level in large number of

industries.

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ix. A good number of executives were of the opinion that employee

initiative skill are expected to be high or advanced among their

employees.

x. Leadership and motivation skills, as opined by executives in majority is

that such skill should be high, followed by few of them were wanted it

advance.

xi. Management skills were as expected to be high as expressed by a

majority of the executives irrespective of their sector of business.

xii. Ability to learn and develop self was expected to be high are advanced

by a majority of executives irrespective of the sector to which they

belong.

xiii. Team working skills were also expected to be high by a majority of

executives irrespective of their sectors.

xiv. Understanding the customers needs was also expected to be high by a

majority of the executives irrespective of the sector.

xv. A majority of the executives expected adaptability and flexibility skill to

be high irrespective of their sectors.

5.2.4 Skill Gaps

In this section the findings are presented according to the executives’

responses sector wise for quick understanding of the skill gaps prevalent in

the sector.

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FINANCIAL SECTOR

Specifically, out of 13 skills in this sector, the serious skill gaps found in

the order are communication skill, Adaptability/ Flexibility, IT, Ability to

learn, Management Skill and ability to follow instructions.

MANUFACTURING SECTOR

In this sector, the serious skill gaps are found in order of

communication skills, Adaptability/ Flexibility skills, IT, Ability to learn,

management skills and ability to follow instructions.

PROCESS INDUSTRIES

In this sector, the serious skill gaps are Communication skills, ability to

follow instructions and management skills.

SERVICE SECTOR

In this sector, it is interesting to note that the serious skill gaps exists in

language skills, communication skills and management skills as

reported by the executives.

IT/ITES

In this sector many serious gaps were found in the skills indicating that

the sector suffers from the shortage of skills. Some of the serious skill

gaps are found in communication skills, ability to follow, language

skills, problem solving skills, leadership/ motivational skills,

Management skills and Adaptability/ Flexibility skills.

RESEARCH & DEVLOPMENT SECTOR

As this sector is an emerging sector, serious gaps were found in many

skills. They are, in order, Management skill, Communication skills,

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Ability to follow instructions, showing initiative, IT skill, Understanding

customer needs, Adaptability/ Flexibility skills, Leadership/ Motivating

skills.

5.2.5 Consequences of skill gaps

In this section, the impact of the skill gaps are being encountered by

the sectors have been presented.

Numeracy Skills

It was found that a majority of the executives are of the uniform opinion

that there is severe impact are numeracy skill gap on their day to day

operations irrespective of their sectors.

Literacy Skills

Similarly in all the sectors of business the impact of gap in literacy skill

is felt severe by all the executives working in the sectors.

Language Skills

Except in finance sector, the language skill gap has created severe

impact in all the sectors as stated by a large majority of the executives.

Trade/ Process Skill

A large majority of executives stated that the severity of impact created

by the lack of trade/processing skills was faced in all the sectors of

business.

Problem Solving Skills

Executives in large majority were of the uniform opinion that the impact

of gap in problem solving skills is felt severe in their respective sectors

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Communication Skills

Except in manufacturing sector, executives were of the uniform

opinions that the impact of shortage in communication skills is felt very

severe in their workplaces.

Ability To Follow Instructions

A majority of executives were of the uniform opinion that the impact of

gaps in the skill to follow instructions had been severe in their

workplace irrespective of their sector.

IT Skills

It was found that in all the sectors, a majority of the executives were of

the opinion that the impact of shortage of IT skills was severely felt in

their workplaces.

Ability To Learn

It was found that a majority of executives were of the opinion that the

impact of gap in such skill had been severe in their workplaces

Showing Initiative

A majority of executives were of the opinions that lack of initiative

among employees created a severe impact in their workplaces

irrespective of the sectors.

Leadership/Motivational Skill

It was found that except in service sector, a majority of executives were

of the opinions that the impact of shortage in this managerial skill is felt

more severe in their workplace.

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Leadership And Development Skill

As regards the impact of leadership and development, the impact of

such skill shortage is found more severe in all the sectors except in

Financial services, IT/ITES and Research and Development.

Team Working Skills

Except in service sector, the impact of shortage of such skills was

severe in all the sectors as reported by the executives.

Understanding Customer Needs

As regards the impact of skill gaps regarding understanding customer

needs, it was found that except in financial sector, the impact was

severe in all sectors as reported by the managers.

Entreprenuer Skills

It was found that except in service sector the impact of the shortage of

this skill was severe in all the sectors as felt by the managers.

Adaptability / Flexibility

Lastly with regard to the employee skill of adaptability to change and

flexibility, though the impact is felt in all the sectors, the severity was

not there in any of the sector as felt by the managers.

5.2.6 Management Challenges

Some important challenges that results due to the impact that of skill

gap in various sectors have been explored. The challenges identified by

them as the once to be addressed for survival and growth of business have

been presented.

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Training as a Challenge

It was found that except in financial services, the majority of managers

in all other sectors were of the opinion that they met the challenge of

the skill gap by providing training to the existing employees. Rather

than recruit afresh.

Losing Business

It was found that a majority of executives in all the sectors were of the

opinion that losing business to the competitors is not at all a challenge,

a little over one third across all the sector said that it is a challenge to

be addressed.

Loss of quality of service

Except in IT/ITES sector a majority of the executives in other sectors

were of the opinion that loss of quality in the service was a major

challenge which needs to be addressed.

Developing new products/ services

In the wake of significant gaps in the skills, addressing development of

new products/ services is a very serious challenge. Surprisingly it was

found that this one is not a serious challenge in process industries and

service sector.

Withdrawal of products/ services

In manufacturing, the majority of the executives are of the opinion that

they are under the pressure to withdraw certain products/ services

since the impact of skill shortage is more.

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Meeting Customer service Needs

A majority of executives with exception in process industries, service

sector and R & D sector were found reporting that meeting customer

service objectives is a major challenge than in other sectors.

Difficulties in introducing Technologies

As regards difficulties in introducing technologies at workplace, it was

found that majority of the executives were of the same opinions that

there is difficulty in introducing new technology with an exception in IT/

ITES sector where 50% of the respondents said no to such challenge.

Difficulties in introducing new work practices

Similarly, majority of the executives were of the opinion that it is also

difficult to introduce new work practices.

Increased running costs

It was found that a large majority of executives in all sectors said that

increased running costs due to use of overtime subcontracting or

temporary staff. However either a little over one third or one fourth said

that it is a challenge.

Difficulties in meeting delivery schedules

It was found that, surprisingly a majority of executives in IT/ITES said

that meeting delivery schedule is not a challenge. Whereas majority in

all the sectors said it is a challenge and were so in financial sectors.

Loss of efficiency/ increased wastage

It was found that except in service sector and IT/ITES sectors, a

majority of executives in all other sectors said that loss of efficiency is a

challenge.

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5.2.7 Addressing Skill Gap

A large majority of executives said that they have taken all the

precautionary measures to address the skill gaps irrespective of

sectors and did not leave it to the market. Some of the measures are

presented below.

Increased Apprenticeship

It was found that though a majority of executives in all sectors have

increased apprenticeship. To combat skill gap problems, however, this

was not so in process and service sector.

Providing further training

In order to address the skill gaps, a majority of executives in services,

IT/ITES and R & D said that they are providing further training.

Changed work practices

A large majority of the executives said that they have changed work

practices to address the skill gaps, irrespective of their sector. This

could result in use of new alternative skill set or ensure maximum

output from existing skill set.

Relocate work elsewhere

A large majority of the executives said that they did not initiate

relocation of work elsewhere. In other words they combat the skill gap

by other means such as training, work practices, technology up

gradation etc.

Increased recruitment activities

A large majority of the executives said that they have increased

recruitment activities, to acquire new skills in addition to other

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measures to address the challenges of the skill gap.

It is seen that the industries are resorting to various measures to fight

the skill gap including measures like training, technology up gradation,

changing work practices etc.

5.2.8 Summary of Hypothesis

The Hypothesis formulated at the beginning of the study and the

results of the testing of these hypotheses is summarized in the following table

and brings out the entire study into a nut-shell.

Table: 5.1: Summary of Hypothesis

S.No. HypothesisAccepted/

Rejected

Ho1There is no significant association betweendrivers of future skills and the type of sector inthe select companies

Rejected

Ho2 There is no significant association betweenskill acquisition process and the type of sector.

Rejected

Ho3 There is no significant association between typeskill reserve and the type of sector.

Rejected

Ho4There is no significant Gap in the skills asreported by the managers in the selectcompanies across the sectors

Rejected

Ho5 There is no significant association betweenconsequences of skill gaps and type of sectors.

Rejected

Ho6 There is no significant association betweenmanagerial challenges and type of sector. Rejected

5.3 Discussions

ASTD research in 2009 identified two underlying causes of the skills

gap:

1. Jobs are changing

2. Educational attainment is lagging.

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In addition to those factors, which have long contributed to creating and

widening skills gaps, the large-scale loss of jobs during the recession that

began in late 2007 also plays a role. The recession is the longest since World

War II, and in the 2009 the jobless rate has soared up.

Even though organisations may have skills gaps, they will not be filling

them from the ranks of the unemployed. “Recessions accelerate the trend to

eliminate low-wage, low-skills jobs”, “and those jobs don’t come back.”

Instead, companies create jobs requiring more education and skill. Growth of

these jobs is slow in part because they require paying higher salaries and

providing costly technological infrastructure for these workers. “Employers will

hire cautiously to fill skill gaps that they couldn’t address by hiring during the

recession,” (Carnevale, 2009). He predicts that pressure to fix skills gaps will

intensify again, probably by 2013, when the economy has added back the

millions of lost jobs and will need to create many millions more to produce

growth (Carnevale, 2009).

5.4 Implications

In this section, Implications are drawn for the development of a skills

Policy at government, enterprise and industry levels. Secondly implications

are also drawn for Curriculum Development, and lastly, implications are drawn

for Practicing training and development in organisations.

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5.4.1 Government and the National Skills Development Policy

This study suggest that the government needs to focus on raising the

education and skill levels of its citizens so that people and the businesses can

continue to compete and thrive in the global economy . Some of the important

recommendations that need to be followed in observing the policy

considerations are:

1. Educators must emphasize science, math, and technology-related

programs in central and state curricula, invest more in effective teacher

education focused on math and science, and ensure that programs

regarding career opportunities and requirements for graduation are

geared for the next century employment.

2. Employers should invest at least five percent of their profits, whenever

possible, to provide training opportunities for their current employees.

3. Central and state governments should invest in the capacity of

university and technical colleges to prepare individuals for careers in

high-growth industries.

4. Government education standards should include career education as a

measurable criterion for success.

5. The Higher Education & its funding mechanisms should provide

increased access for adult learners. Further, there should be strong

interface with the industry for making the young people more skills

driven.

6. Individuals must take responsibility for their own careers and

employability by earning relevant industry certifications and formal

education credentials.

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7. The apex bodies that promote the interests of the employers,

employees and the industries must strengthen their mutual

engagement in order to better advise workforce functions on rising and

declining economic conditions, business investments, skill needs, and

employment requirements.

8. Public and private partnerships should be encouraged to support

career awareness campaigns.

5.5 Curriculum Development

As mentioned above, the findings of this study are important in

understanding the skills gap in two ways—the importance assigned to tasks

by the employer and the measure of proficiency derived from the proficiency

ratings. These findings also can inform policy, curriculum development and

practice.

Vallas (1990), in his research on "what is skill?", indicated that skill

research and public policies form a relationship. That is, the development of

policy around skill research is a known fact. Furthermore, Cappelli (1995)

indicates that shortly after the Commission's first publication of the SCANS

Report, efforts were made to have these skills institutionalized in curricula

across the nation.

Because of the very nature of this study on skills research, and

because the SCANS’ general workplace skills findings, both policy and

curriculum issues are raised in this study. For example, regarding policy, the

question is raised regarding whether there is the need for more research and

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development to deepen the understanding of the skills gap in particular

industries, as well as attention to the definition of skills in relation to

educational preparation.

These observations are a first step in the curriculum or policy

development process toward aligning educational programs with general or

basic needs of employers in industry. As the findings reflect, the top one third

of the skill (tasks) assigned ratings of importance by the front-line supervisors

were also found to be important in how the worker interacts with other

workers-employers, supervisors, and customers, and, as was mentioned

above, in technology basics.

5.6 Suggested Training Programs – Sector-wise:

Based on the findings of the research, sector wise training programs to

address the skill gap have been drawn up and presented in the following

tables. However, these are only suggestive and generic and the actual

training in any organisation/company should be only after a through analysis

of the training need and specific need based.

The tables below presents the curriculum for training and education of

employees sector-wise indicating both the technical and socio behavioral

skills as brought out by the managers of the companies in different sectors in

this study.

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Table 5.2: Skill Building Programme in IT/ITES SECTOR

Functional skills Technical skills Socio behavioral skillsLanguage Skills

Good Communication skillsGood Problem solving skillsListening skillsLeader ship skills andTime management skills.Good grip over subjectThinking out of the box and coding itin a simple manner.Should be a quick learnerEtiquette and grooming skillsManagement Skills

Quantitative SkillsInformationTechnology Skills

Updated knowledgeon the softwares onwhich they areworkingCoding and decoding Potent technicalskills. Good simulationskills Solving technicalissues quickly.Upgrading thesoftware ortechnology andmaintaining themintelligently.Quality assurance

Problem Solving SkillsAbility To LearnShowing InitiativeTeam Working SkillsLeadership/MotivationalSkillsUnderstandingCustomer NeedsAdaptability/ Flexibility

To be a good teamplayer and good teamleader Must have patience Friendly Adjust yourself to theambience. Must be a goodmotivatorAbility to FollowInstructions

Table 5.3: Skill Building Programme in Research and Development Sector

Functional skills Technical skills Socio behavioral skills

Good knowledge in their field of research

Good presentation and communication

skills

Ethics and governance

Negotiation skills for research contracts

Good project management skills

Good time management skills

Good written communication for

publications

Simulation based training at

the early stage

Should know how to handle

the equipments

Good research skills

Use molecular mechanics

and dynamics to study

biomolecular systems.

Develop computer software

for chemical applications

In depth experience with

computational chemistry

programs including SYBYL,

MacroModel,

Insight/Discover,

Quanta/CHARMm, Cerius2,

Biograf, Chem-X, AMBER

Must have lot of

patience

Good team player

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Table 5.4: Skill Building Programme in Service Sector)

(Hospital Industry)

Functional skills Technical skills Socio behavioral skillsGood communication skillsTime management skillsPatience level should be highLeadership skillsDecision making skillsTeam working skillsEmergency management

Technological advances inhealth caresimulation-based trainingGood surgical skillsProper usage ofequipments

Individual situationawarenessEmpowerment issuesand team situationawarenessPatient safety andmanagementHumanity

TABLE 5.5: Skill Building Programme in Process IndustryFunctional Skills Technical skills Socio behavioral skillsGood communication skillsGood leadership skillsGood maintenance skillsHandling uncertainitiesHandling unions and strikesGood motivational skillsThe ability to optimize the supply chainGood decision making skills

Good mechanical skillsKnowledge about thesoftware that are used intheir industry in the processof manufacturingCutting-edge engineeringexpertise

Good team playerFlexible

TABLE 5.6: Skill Building Programme in Financial ServicesFunctional skills TECHNICAL SKILLS SOCIO –

BEHAVIOURAL SKILLSApplication oriented domainknowledgeGood communication skillsCustomer orientation – servicing& acquisitionInfectious positive attitudeHigh levels of integrityExposure to application softwareSelf learning capabilityOther soft skills like ability to workwith teams, deadline and targetorientation etc…Location flexibility

Sales and customer acquisition:Business Development, Sales,Marketing & RelationshipManagementFront office operations: Branch andCorporate, and other Customerservicing functionsBack office operations: Transactionprocessing, underwriting, queryhandlingHigh end operations: Treasury,Forex, high end underwriting,Financial Planning for HNI, WealthManagement and many moreEntrepreneurial : Consulting,Financial Planning, WealthManagement, Insurance advisors toindividual & corporate

Listening skillsGood networkingHigh levels of patience

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Table 5.7: Skill Building Programme in Manufacturing

FUNCTIONAL SKILLS TECHNICAL SKILLS Socio – BehavioralSkills

CommunicationMathematicsInformation and communication technology(ICT)Reading and writingLanguage competenciesNegotiationAnalytical

Computer knowledge(advanced)Manufacturing materialsand processesMechanical measurementand instrumentationQualitySafetyElectronicsDigital design and modelingMechanical design andfabricationpurchasing and managing

team playerleadership skills

5.7 Conclusions

The problem of skill shortages among people across the world has

never been felt as it is now. Such scenario is globally relevant and nations

across the world have been constituting national skills commissions one after

the other. Indian is no exception. Industries across all sectors of economy

have felt such need direly / and voiced their concerns for the future of the

economy. Encouraged by such challenge, the present study was undertaken.

The present study was conducted primarily to explore the skills gaps

that are prevalent across six sectors of business namely i) Financial Sector, ii)

Manufacturing Sector, iii) Process Industries, iv) Service Sector, v) IT / ITES,

and vi) Research & Development.

The study had four-fold purpose. They are i) to analyse the type of

skills across the six industry sectors under study. Secondly, it intends to

access the skills gap analysis Industry –wise since analyzing the gaps in

various skills is the centrality of this research. Thirdly, the consequences of

skill gaps in the industries have been examined. Lastly, the managerial

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challenges in response to the skill gaps were explored.

There were six null hypotheses tested in this study. Interestingly, all of

them were rejected based on the chi-square test results and the paired t-test

results. Such rejections indicate that the problem of skill shortages across all

the six sectors is very harmful to the economy which is at present positioned

at 5 percent.

Human resource functionaries from 210 companies across six sectors

mentioned above participated in this study. Their responses to a structured

questionnaire formed the basis of the results of the study.

Therefore, in relation to the findings of the study, various implications

have been drawn. Particularly, the implications for designing new training

programmers across the sectors customized and generalized, followed by the

managerial implications of skill building through various programmes of

mentoring, coaching and counseling.

5.8 Recommendations for Future ResearchSeveral workforce studies have analysed skills gaps by utilizing a mix

of workforce survey research and aggregate labour market supply/demand

indicators. This hybrid approach of using both survey and labour market

supply/demand data is recognized as a “best practice” of addressing skills

gaps for many state workforce agencies and labour market information offices

around the world.

One example of this hybrid approach is to determine skill supply from

responses to telephone-based labour shed surveys and skill demand on

employer job vacancy surveys. Such surveys are need of the hour.

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Another variation of this hybrid approach to skills gap analysis includes

more general comparisons of aggregate labour market supply indicators

various occupational projections data in combination with employer job

vacancy survey data to represent skill demand.

In each case, the hybrid approach provides a balanced approach that

incorporates both aggregate and customized data to determine gaps in skills.

The phrase “skills gap” is used in industrial / organisational (I/O)

psychology literature within the context of competency analysis and modeling.

The task force was charged with studying the related issues of job

analysis and the burgeoning practice of competency modeling used as a

method for addressing the strategic needs of organisations. Specifically, it

noted that job boundaries were increasingly becoming blurred and that this

trend necessitated the use of competency-based approaches to job analysis.

While the task force concluded that there was disagreement among

practitioners at the time regarding a common definition for competencies and

competency modeling, the importance of such research continued to be a

focus in the literature over the years.

A gradual consensus formed in the competency analysis research

conducted soon thereafter around defining the process of competency

modeling. Competency modeling generally includes the steps of: (1)

competency mapping, (2) competency gap analysis, (3) competency

development, and (4) competency monitoring.

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The second step of the competency modeling, a competency gap

analysis, has been defined as the gap between the competencies that

employees possess in comparison with the competencies required by an

organisation. While there is a noted distinction between the concepts of

“competencies” and “skills,” the I/O literature uses the terms “competency

gap” and “skills gap” interchangeably in researching the process of

competency modeling. This report will not enter into the fray of determining

the appropriateness of investigating either competencies or skills, but rather

will provide a review of the methodologies used in conducting a gap analysis

in the context of the I/O literature. Irrespective of the use of “competency” or

“skill,” the results of a gap analysis are often used by I/O and human

resource management researchers to indicate whether present employees

have the necessary skills and competencies for their jobs and, if not, where

they need development.

The practice of using competency modeling and gap analysis to meet

the goals and strategies of a business is referred to in the I/O literature as

competency management.

This concept includes a larger framework of documenting, mapping,

and assessing competencies, sometimes in the context of future, as well as

current, organisational needs.

Within competency management practices, a gap analysis is critical to

minimizing time spent in training and enabling workers to focus on specific

skills that they lack.

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The ability to create cost effectiveness in organisational training

systems has increased the use of competency management systems in large

organisations, resulting in more granular distinctions in the definition and use

of skills gap research.

The I/O literature has many variations on defining and implementing

competency or skills gap analysis. While some of the gap analysis is

conducted within the context of an organisation, there are also many

examples of I/O gap analysis conducted from an industry-wide perspective.

In addition to variations on research context, the literature also contains

major differences in the definition of skill supply and demand. In defining the

concept of gap analysis, some of the I/O research uses supervisory

perception to define skill supply and demand.

Research by McClain defined a skills gap as any difference between

supervisors’ perceptions of the importance of a skill versus their perception of

actual skills possessed by entry-level employees.

Other researchers have to define supply as skills identified by

hospitality educators as important, and demand as skills identified as

important by industry recruiters.

A critique of this approach is the assumption that perception of skill

importance by educators can be used as a proxy for skills possessed, either

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by graduates or by entry-level workers. Similar problems exist in studies that

utilize self-reported skill level to determine supply rather than actual assessed

level of skills.

Another recommendation in regard to the future research is replication

of the results using an instrument similar to this instrument. For instance, this

study could be replicated in similar industries and occupations in different

states which would assist the National Skill development commission in

determining the viability of "national" skill standards.

For gathering information about skill gaps toward understanding the

skills gap, a third recommendation is to apply a combined direct measure

approach in other entry-level occupations, firms, and industries. Replication of

this "skills gap analysis" model in another industry, at the firm level, and in

another entry-level occupation will confirm the relationship between

importance and proficiency of the SCANS general workplace skills and will

determine if different or similar patterns of clusters in core skills are evident.

A fourth recommendation addresses the use of case studies. A series

of case studies should be conducted where teachers are given these data and

asked to develop a curriculum for high school and technical college students.

It would be useful to know how teachers interpret and use this information in

creating learning experiences and assessing learner outcomes.