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    Neeraj SharmaSupervisor- Prof. Neelu Rohmetra

    ( DoR- April,2009)

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    The research study has been reported along sixchapters as follows:CHAPTER I: IntroductionCHAPTER II: Review of LiteratureCHAPTER III : Profile of UniversitiesCHAPTER IV: Research Design and MethodologyCHAPTER V: Human Capital Management using

    HRD Scorecard: Findings, Interpretation and

    Comparative Analysis across UniversitiesCHAPTER VI: Summary, Conclusions andSuggestions.

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    Chapter I focuses on the conceptual issues in HumanCapital Management and the Balanced Scorecard. It

    also develops a linkage between Human Capital

    Management and Balanced Scorecard. The Chapter

    further discusses Human Capital Management in

    Higher Education Sector.

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    This Chapter presents a Review of Studies/ Literature in thearea of Human Capital management, Balanced Scorecard

    and the relevant studies in the Higher Education Sector.

    The relevant studies in Indian context have also been

    reviewed. Select researches which were studied in depthinclude: Ostroff, C. (1995), Parsons, J. G.(1997), Prifrel,

    R(1985), Pfeffer, J. (1998), Pfeffer, J. (1994), Fitz-Enz,

    J.(1999), Finn, R. (2003), Ferris, G. R., Hochwarter, W. A.,

    Buckley, M. R., Harrell-Cook, G., & Frink, D. D. (1999).Schuler, R.S. and S. E. Jackson (1987) (1999), Kaplan, R.S.,Norton, David P (1992,1993,1996,2004,2003,2001).

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    King, R (1995),. Becker, B. and Gerhart, B. (1996), Kesler and J.A. Law, (1997), Kessler(1995), Conner and Ulrich (1996),Becker, B. E. & Huselid, M. A.(1998), Pareek, Udai and Rao,T.V.(1988) (1997), Galbraith, J. (1992), Rao, T. V. and Periera D.F. (1986), Sparrow, P. & Hiltrop, J. M. (1994, Ulrich, D.O.,Brockbank, J.W., & Yeung, A., Lake, D. (1995), Ulrich,D.O.,Yeung, A., Brockbank, W. & Lake, D., (1994), Russell, J.;Treborg, J. & Powers, M. (1985), Snell (1992),Delker SueGentryBeverly(2003).The Literature has been reviewed on Human CapitalManagement , Balanced Scorecard, Measurement of Human

    Capital Management using HR Scorecard and its application inthe Higher Education Sector.20 Books, nearly 170 research papers and articles have beenreviewed for the research study.

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    This chapter sketches the organization profile ofJammu University and University of Kashmir focusing

    on organizational structure, employee strength, variouscourses offered and offsite campuses in detail.

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    The chapter on Research Design and Methodologydeals with the purpose of study and the research design.

    This chapter explains the research methodology utilizedfor the execution of the present study. The methodology

    has been evolved in such a manner to facilitate the datacollection process and relevant employment of dataanalysis methods.

    The chapter has been divided into a number of sections

    beginning foremost with rationale and scope of thestudy, objectives and hypotheses formulated for thestudy, survey instrument design, sampling design etc.

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    This chapter presents the results of the gathered data

    which has been subjected to analytical procedures

    through the application of various statistical tools.

    The chapter maps the demographic profile of the

    respondents, carries out a systematic analysis of the

    objectives and tests the hypothesis framed for the study.

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    This Chapter discusses in detail the Summary,Conclusions and Suggestions.

    In this chapter an attempt has been made to present an

    overall assessment in the form of summary of the

    findings and conclusions. Limitations and future

    implications of the research have also been presented in

    this chapter.

    The expected contribution of the present research shallprovide meaningful insights to the higher education

    sector and the society at large in future.

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    The thesis also presents all the supporting information,including scorecard and the questionnaires in the form

    of annexures.

    The references have been provided at the end of each

    chapter and a comprehensive bibliography has been

    presented towards the end of the thesis which includes

    list of selected readings and the publications.

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    Human resource, in this information age, is anincreasingly broadening term that refers to managing

    "human capital", the people of an organization and is

    now more than ever in the spotlight of many

    organizations' agenda.

    Human Capital Management can be regarded as the

    umbrella term of three separate management disciplines

    i.e., Human Asset Management, Human CultureManagement and Human Potential Management(Marrewick, Timmers, 2002).

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    T. V. Rao (1999) proposed a model, popularly knownas the HRD Score Card to grade the organizations with

    respect to their organizational maturity and for making

    assessment of the human capital identifying human

    capital elements and the underlying values, which help

    to integrate their human capital strategies with their

    strategic and programmatic planning.

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    HRD Scorecard proposes a four dimensionalassessment criteria which includes the following:

    (i)the extent of maturity of the organization in terms of

    its HRD systems;

    (ii)HRD structure and competencies (of HRD managers,

    line managers, the top management and the workmen

    and their representatives);

    (iii) HRD styles, culture and values ;(iv) business linkages of HRD and its strategies.

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    This framework can act as an instrument for analyzingthe human capital by looking at the current state of

    human resources and help in creating knowledge

    managers. This framework can act as an instrument for

    analyzing the human capital by looking at the current

    state of human resources and accordingly create

    knowledge managers.

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    The HRD Score Card is based on the BalancedScorecard Model.( Kaplan and Norton, 1996).The

    Balanced Score Card requires the use of sets of

    measure to evaluate how well the organization is doing

    with each of its objectives..

    HR Scorecard describes two important things:

    Manage HR as a strategic asset and

    Demonstrate HRs contribution to the firms financialsuccess.

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    The most valuable asset of a 20th century company was

    its production equipment. The most valuable asset of

    21st century institution will be its knowledge workers

    and their productivity. (Peter Drucker,1999)Emergence of higher education institutions, therefore, holds

    an important place in the present glocal environment,

    characterized by rapid change, intense information flows and

    increasing competition.

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    Universities being skill development centers of thesociety and the grooming place where manpower

    required for the future growth of the society is

    developed, have contributed extensively towards the

    remarkable progress that our country has achieved all

    through years in different sectors.

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    To meet out these enormously complex and everchanging developmental needs, properfunctioning of the Universities depend upon howeffectively the available manpower is utilized.

    On the one hand, Universities are increasinglybeing required to teach ever increasing numberof students in increasing numbers ofspecializations and disciplines, and, on the other,

    they are being asked to pay more attention toquality of teaching and educational programs

    ( Uma Shanker, Dutta,2007)

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    This card helps to explain which systems are good,which competencies are good or weak ( HR Staff,

    etc.) , what impact is missing. The Scorecard helps to

    focus on Human Capital function and its impact in the

    context oforganisations current and future goals.

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    The scope of present research study is extended to theHigher Education Sector.

    For the purpose of this study, two Higher Education

    Institutions have been identified, namely, the

    University of Jammu and the University of Kashmir in

    the state of Jammu and Kashmir, India.

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    University of Jammu is recognized as one of thepremier institutions of the country, the University of

    Jammu, accredited as 'A' grade University by National

    Assessment and Accreditation Council (NAAC), came

    into existence in 1969 vide Kashmir and Jammu

    Universities Act 1969 following bifurcation of the

    erstwhile University of Jammu and Kashmir by an

    Ordinance promulgated by the Governor on September

    5, 1969 and subsequently adopted as an Act of the State

    Legislature.

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    University of Jammu is primarily a research, teaching,affiliating and examining body involved in promotion

    of arts, science and other branches of learning.

    Apart from its main campus in Jammu, the University

    has 11 other campuses, out of which 7 campuses

    located at Kathua, Bhaderwah, Poonch, Udhampur,

    Ramnagar, Kishtwar and Reasi have been made

    functional.

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    Teaching-learning and research are carried out by 11faculties comprising around 34 departments, 13 centers

    and around 167 affiliated colleges, awarding degrees in

    around 40 programmes both at the postgraduate and

    undergraduate level.

    The University has a total manpower strength of around

    1350 permanent employees comprising teaching as

    well as non-teaching staff.

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    University of Kashmir is also A' grade accreditedUniversity by National Assessment and AccreditationCouncil (NAAC), an independent organisation of theUniversity Grants Commission (UGC).University of Kashmir has now come a long way and has

    developed into a multi-faculty University, impartinginstruction in various subjects in the Faculty of Arts,Languages, Natural Sciences, Social Sciences, Education,Commerce, Law, Medicine, Dental Surgery, Engineering,Music and Fine Arts and Non-formal Education, all manned

    by academics with considerable teaching and researchexperience, some of whom occupy places of eminence inthe academic world.

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    The University is spread over three campuses. Whilethe main campus is located at Hazratbal, Srinagar, the

    North Campus at Delina, Baramulla, and the SouthCampus is situated at Fatehgarh, Anantnag.

    The University has at present 09 faculties, 35 post -graduate Departments, 17 Research and other centres,04 Post-graduate Centers, 40 Govt. affiliated Colleges,06 Constituent Colleges, 07 Oriental Learning Colleges

    and around 74 Affiliated Colleges offering professionaldegree courses.

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    University of Kashmir has also acquired around 75acres of land at Kargil and around 100 acres at Leh for

    establishing its two Satellite Campuses there. It has a

    total manpower strength of around 1700 permanent

    employees comprising teaching as well as non-

    teaching staff.

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    Primary data was collected from the employees of theselect organizations from Jammu and Kashmir

    respectively. The Questionnaires were distributed

    among 670 respondents from both the Universities, out

    of which only 520 completely filled questionnaires

    were included in the study yielding a response rate of

    80%. The universe comprises 1350 permanent

    employees from University of Jammu and 1700permanent employees from Kashmir University.

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    The sample size was selected based upon the level ofprecision, standard deviation and standard error of the mean(Malhotra, Dash, 2010; Gupta, S.P.2008) excluding ClassIV employees.

    The sample size is nearly 30% of the total population understudy which is considered an apt size for social sciences.Representative sample from each cadre i.e. faculty, officersand non teaching staff is taken.

    The sample thus constitutes of 520 employees, 273

    employees from the Kashmir University and 247 employeesfrom the Jammu University. Further, the sample size asstated by Balaure, (2000), can be calculated by the formula:

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    n=t2 x p x (1-p)e2

    The sample size, thus can be calculated as n- sample

    size, t- degree of confidence (1.96 Tabulated Value at5% level of significance)e- error limit at 5%. Since it is

    difficult to estimate p value it is taken as 0.5

    so, n= 1.962 x 0.5(1-.5) = 384

    0.052

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    The respondents for the study were selected fromJammu and Kashmir Universities. Out of 520respondents, 47.50% were from Jammu Universitywhile 52.50% were from Kashmir University.

    70.96% of the respondents were male while 29.03% ofthe respondents were female. 44.98% of the malerespondents were from Jammu University and 55.01%of male respondents were from Kashmir University.

    53.64% of the female respondents were from JammuUniversity and 46.35% of the female respondents werefrom Kashmir University.

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    The teaching employees constitute 28.8% and the nonteaching employees constitute 71.2% of the sample.

    The respondents below graduation were 15%, 50% ofthe respondents were graduates and 35% of the

    respondents were above graduates.About 16.3% of the respondents were having workexperience of less than 5 years, 30.8% of therespondents were having work experience of 5-10 years

    and nearly 26.9% and 26% of the respondents werehaving work experience of 10-15 years and more than15 years respectively.

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    6.7% of the respondents gross salary is less thanRs.10,000 , 9.8% of the respondents gross salary lies

    between Rs.10,000-20,000, 13.3% respondents gross

    salary lies between Rs.20,000-30,000 and 30.8% of the

    respondents gross salary lies between Rs.30,000-

    40,000 and 39.4% of the respondents gross salary lies

    above Rs. 40,000.

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    Factor No. of Respondents Percentage

    Organization KU 273 52.50%

    JU 247 47.50%

    Gender

    Male 369 JU KU 71% JU KU

    166 203 44.98% 55.02

    %

    Female 151 81 70 29% 53.64% 46.36

    %

    Class Teaching 150 72 78 28.5% 48% 52%

    Non Teaching 370 175 195 70.3% 47.29% 52.70

    %

    Education

    Below Graduation 78 44 34 15% 56.41% 43.58

    %

    Graduation 261 117 144 50.19% 44.82% 55.17

    %

    Above Graduation 181 95 86 34.80% 52.48% 47.51

    %

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    Work ExperienceLess than 5 85 45 40 16.34% 52.94% 47.05%

    5-10 160 87 73 30.76% 54.37% 45.62%

    10-15 139 68 71 26.73% 48.92% 51.07%

    More than 15 136 47 89 26.15% 34.55% 65.44%

    Monetary BenefitsLess Than 10,000 35 16 19 6.73% 45.71% 54.28%

    10,000 -20,000 51 24 27 9.80% 47.05% 52.94%

    20,000-30,000 69 34 35 13.26% 49.27% 50.72%

    30,000-40,000 160 77 83 30.76% 48.12% 51.87%

    More than 40,000 205 96 109 39.42% 46.82% 53.17%

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    The present study catered to the following objectives: To study and evaluate the Human Capital Management

    Systems in Universities under study.

    To identify and highlight the strengths and weaknesses of the

    existing Human Capital Management Systems by using HRDScorecard Model.

    To undertake a comparative analysis along Human Capital

    Management Systems between the organizations under study

    on the basis of research findings.

    To suggest a HRD Score Card Model for the organizations

    understudy

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    HRD Audit Questionnaire designed by Rao, T. V.(2008) was administered on thesample selected on convenience basis to collect data for Human CapitalManagement. The scores were analysed accordingly.

    The HRD Audit Questionnaire covers the dimensions of Human CapitalManagement which includes items grouped into factors as follows:

    (A)Career System including

    A1. Manpower Planning and Recruitment,

    A2

    . Potential Appraisal and Promotions,

    A3. Career Planning and Development. ,

    (B) Work Planning including

    B1 Role Analysis,

    B2 Contextual Analysis,

    B3. Performance Appraisal Systems,

    (C) Development System withC1 Learning Systems/ training Questionnaire,

    C2 Performance Guidance and Development,

    C3 Other Mechanisms,

    C4 Worker Development,

    (D)S lf R l S i l di

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    (D)Self Renewal Systems includingD1 Role Efficacy,D2 Organisational Development andD3 Action Oriented Research,(E) HRD includingE1 Quality Orientation,E2 Rewards and Recognition,E3 Information,

    E4 Communication andE5 Empowerment(F) HRD Function and(G) Competency Mapping, 360 degree Feedback and

    Assessment and Development Centres.

    The structured questionnaire also incorporates the open endedprovision for seeking insight into the Suggestions ,Strengths and the Weaknessesparameters.

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    To collect data for the dependent variable HRD Climatethe structured 38 item HRD Climate Questionnaire ( Raoand Abraham,1986) has been used.The Questionnaire is grouped into three categoriesincluding General HRD Climate, OCTAPAC, HRD

    Mechanisms.The General HRD Climate deals with the importance givento HRD in general by Top management and line managers.The OCTAPAC items deal with the extent to whichOpenness, Confrontation, Trust, Autonomy, Pro-activity,

    Authenticity and Collaboration.The items dealing with HRD Mechanisms measure theextent to which HRD Mechanisms are implemented.

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    The reliability for both the questionnaires have beenascertained by applying Cronbach alpha and the results

    show a very high reliability.

    The instruments have been designed on a 5 point

    Likert scale ranging from strongly disagree to strongly

    agree., where 1 stands for not at all true, 2 stands for

    not true, most of the times, 3 stand for somewhat true 4

    stands for mostly true and 5 stands for mostly true.

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    S.

    No.

    Dimension Alpha(Before

    pre testing)

    Alpha(After

    pre testing)

    1. Human Capital

    Management

    0.789 0.880

    2. HRD Climate 0.791 0.896

    Table : Reliability Coefficient of Human Capital Management and HRD Climate

    Construct

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    In order to achieve the objectives laid down for the study,the data of different aspects were collected from bothprimary and secondary sources. The data from secondarysources was gathered from both published and unpublishedsources.

    The published data was gathered from journals, magazines,reviews, periodicals, and books. The data collected fromsecondary sources were mainly accessed through internet.An odd number of research papers were reviewed forcollecting the secondary data. The list of research papers

    which were reviewed has been provided at the end of theeach chapter and also the references of all the researchpapers reviewed has been provided at the end of thesis.

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    Descriptive Statistics-

    The mean values as well as the standard deviations offactors and their items were studied. On a 5 point Likertscale ranging from strongly disagree to strongly agree with

    a neutral value of 3, the mean value of Human CapitalManagement construct, the first factorCareerSystem wasfound to be 3.63 with a standard deviation 0.248 andvariance 0.062. For second factor i.e., WorkPlanning the

    mean value was 2.57 with a standard deviation 0.33 andvariance 0.116 and the mean value for the third factor, i.e.,DevelopmentSystem was 2.56 with a standard deviationof 0.312 and variance 0.098.

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    The fourth factor SelfRenewal System has a mean valueof 2.782 with a standard deviation 0.460 and variance0.212. The fifth factorHRD has a mean value of 2.49 witha standard deviation 0.332 and variance 0.111. The sixthfactor HRD Function has a mean value of 2.63 with astandard deviation 0.336 and variance 0.113. The seventhfactor Competency mapping, 360 degree feedback andAssessment and Development Centres has a mean value of1.08 with standard deviation 0.107 and variance 0.012.

    The mean values for Jammu University and KashmirUniversity across Human Capital Management dimensionsand HRD Climate were also studied.

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    Descriptive Statistics-The mean value for the first factor for HRD Climate

    Construct, General HRD Climate was 2.82 with a

    standard deviation of 0.22 and variance 0.05 . The

    second factor OCTAPAC has obtained a mean score

    of 2.52 with a standard deviation of 0.259 and variance

    of 0.067. The third factor HRD Mechanism has a

    mean value of 2.71 with a standard deviation of 0.353

    and variance 0.125.

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    The first hypothesis raised by the study was thatBalanced Scorecard serves as an instrument for

    Human Capital Management. To verify the

    hypothesis, the review of literature was undertaken and

    the data was analysed for the two Universities by usingthe structured Questionnaire ( Rao,2008) on HRD

    Audit.

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    RegressionThe following regression equations were derived based on the regression output:

    Y = + X

    Where,Y= Human Capital Management (Dependent Vari able) X= HRD Cl imate (I ndependent Vari able),

    HCM = + 1GHRD C (1)

    HCM = + 1GHRD C + 2OCTAPAC HRD (2)HCM = + 1GHRD C + 2OCTAPAC HRD + 3HRD M (3)

    The equations thus formed are:

    HCM = 0.016 + 0.096 GHRD C (1)

    HCM = 0.016 + 0.096 GHRD C + 0.821OCTAPAC HRD (2)

    HCM = 0.016 + 0.096 GHRD C + 0.821OCTAPAC HRD + 0.079 HRD M (3)

    Where,

    = 0.016

    1= 0.096, 2 = 0.821, 3= 0.079

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    Regression Model Summary

    Model R R Square Adjusted R Square Std. Error of the Estimate

    1 .731a .535 .534 .17549

    2 .956b .914 .914 .07538

    3 .957c .916 .916 .07461

    a. Predictors: (Constant), hrd1

    b. Predictors: (Constant), hrd1, hrd2

    c. Predictors: (Constant), hrd1, hrd2, hrd3

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    Regression ModelThe Table shows the Model Summary. It is depicted that inModel 1, R2 = 0.535 means that 53.5 percent of the totalvariation in the dependent variable is explained by independentvariable.

    With the inclusion ofOCTAPAC HRD Climate in Model 2, R

    2

    = 0.914 which means that 91.4 percent of the total variation inthe dependent variable is explained by independent variables.Similarly with the inclusion ofHRDMechanisms in the Model3, R2 = .0.916 which means that 91.6 percent of the totalvariation in the dependent variable is explained by the

    independent variables.The second output generated was regarding regressioncoefficients. The t values of the variables in the model arestatistically significant as their sig. values lie below 0.05.

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    Hypothesis that there is a significant relationshipbetween Human Capital Management and HRD

    Climate in the organizations, stands accepted on the

    basis of correlation analysis. Further the stepwise

    regression analysis showed that there is a significantimpact of HRD Climate on Human Capital

    Management

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    The third hypothesis raised by the study was that No variation exists across the Universities with respect

    to Human Capital Management.

    To verify the hypothesis, independent sample t-Test was

    applied. Hypothesis was tested at 0.05 level of

    significance.

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    Independent Samples Test

    Levene's Test

    for Equality of

    Variances t-test for Equality of Means

    F

    Sig.

    T

    df

    Sig. (2-

    tailed)

    Mean

    Difference

    Std. Error

    Difference

    95% Confidence

    Interval of the

    Difference

    Lower

    Upper

    HCM 3.771 .053 90.07 518 .000 .498 .0055 .487 .509

    89.35 485.77 .000 .498 .0055 .487 .509

    HRD 0.261 .610 49.15 518 .000 .437 .0089 .419 .454

    49.24 515.89 .000 .437 .0088 .419 .454

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    The comparative analysis of the mean scores for

    Human Capital Management across the twoUniversities shows that Kashmir University has scoredhigher mean values for all the seven factors of HumanCapital Management.

    Similarly, for HRD Climate the comparison of themean scores across the two Universities along the threefactors of HRD Climate shows that again KashmirUniversity has scored a higher value of mean scores for

    all the factors.Further, ANOVA is applied Similarly, the scores of Fvalues and P values have been compared for the factorsof HRD Climates.

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    To fit the suitable model for the Higher EducationSector Confirmatory Factor Analysis has been applied.

    The CMIN/DF is 1.934 after extraction of first factor of

    HRD Climate Construct and sixth and seventh factors

    of Human Capital Management Construct.

    The RMR is 0.001, GFI is 0.986 and AGFI is 0.970 and

    RMSEA is 0.04. This shows the fit model for the

    universities.

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    The Overall HRD Systems Maturity on the HRDscorecard for both the Universities lies at a low grade .

    This shows that no work has been done till date on the

    development of HRD as a separate department in the

    Universities, although the employees recognize theneed for the same. There is lack of in house training

    facilities and the Performance Management System is

    not at all developed.

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    There is lack of developing a linkage between theperformance and rewards. There is lack of Careerplanning and succession planning and no system forpotential appraisal exists in both the Universities.

    Jammu University has scored a low score incommunication as compared to Kashmir University .This can be done by communication of jobresponsibility and the key result areas to the employees.This in turn requires integration of the individual

    performances with the organizational goals byincreasing the involvement of the employees.

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    Fourthly, with the increasing diversification ofknowledge at the higher education level, reward system

    become a necessity and this need to be linked with the

    performance management system. Finally, the

    integrative approach can never be attained unless apositive work culture or a collaborative culture, with

    openness transparency proactiveness and

    experimentation is developed.

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    In addition, the future research direction might be tofurther refine and improve the psychometric properties

    of the facets of HR mechanisms. This might be

    improved by developing additional items to the scale

    measuring the constructs of HRD Climate and HumanCapital Management. Further, the current study

    presents future research directions regarding the nature

    and number of organizations to be selected for

    conducting an inquiry.

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    In social science researches, initiatives confront

    multiple limitations during the course of conducting

    field surveys.A number of limitations faced is as under:

    Absence of specialized personnel which could provide

    the necessary information about the organization.

    Employees were reluctant to provide comprehensiveinformation while collecting the data.

    Given the paucity of the resources particularly financial

    and time, the study was restricted to Jammu & Kashmir

    state only.

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    Convenient selection of the sample for the study wasbased on the accessibility of organizations for data

    collection.

    Findings of this study need further validation and

    inquiry because of being exploratory in nature.However, the findings have provided a foundation and

    measurement base for future studies related to Human

    Capital Management.

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