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RREEVVIIEEWW OOFF LLIITTEERRAATTUURREE
Review of Literature
19
Arguably, the single most defining feature of a company is the extent
to which it recruits and utilizes human resource, especially in the current
business ethos marked by liberalized economic policies and resultant
transnational competition. The growth and proficiency of a company directly
depends on the caliber and competence of its personnel. The realization that
personnel are of paramount importance in deciding the fate and future of a
company has brought human resource management to the forefront of all
organizational strategies.
Even though industrial sickness is a global phenomenon, it has special
implications for and negative impact on the economy of India because as an
emerging economy it cannot afford to have a pessimal entrepreneurial
ambience where idle capital assets lead to slackened production and
consequent unemployment. Given the economic imperatives that drive us, it
is essential to assess and quantify the incidence of industrial sickness on the
economy.
Kerala has the largest number of public sector undertakings in India.
Out of the thirty-nine PEs under the Industries Department of the State,
fourteen are working with a negative net worth. An analysis of 637 large
scale units show that deficiency in management is the bane of fifty-two
percent cases of sickness. This underlines the importance of efficient human
Resource Management for the revival and survival of the public sector units
in the State. A number of studies have been conducted to analyze the
performance of these units. But a study of this type which tries to answer
the question ‘What is the role played by an efficient HRM system for the
revival of Sick Public Sector Units in Kerala?’ is yet to be carried out. Under
these circumstances, an attempt is made here to present a brief review of
studies related to the above topic.
1) Rekha Murali (1st August 2012) in her article entitled “The dynamics of
appreciation at work” states that people leave their jobs not because of
Review of Literature
20
salary constraints but due to lack of appreciation. She also says that every
company can develop an action plan for suitable reward programmes and
also to celebrate the company’s successes and milestones with the
employees. She concluded her article by saying that appreciation cannot
be bought. It has to come voluntarily and spontaneously.
2) Tenneti (13th June 2012) in an article entitled “Building Two-way
Trust” stresses the importance of two-way trust between the employer
and the employee in an organization. He says that listening to
employees, involving them and empowering them are significant
factors in building trust. He concludes by arguing that any policy or
process encouraging such aspects would go a long way in building two-
way trust which is very essential for keeping smooth industrial relations
within an organization.
3) Mir Mohammed Nurul Absar (2012) through an article entitled
“Recruitment and Selection Practices in Manufacturing Firms in
Bangladesh” tries to explore the differences and similarities between
the public and private sector manufacturing firms of Bangladesh in
terms of recruitment and selection practices, sources of recruitment,
and selection devices. He concludes that the recruitment and selection
practices of the private sector firms are significantly better than those of
the public sector firms in Bangladesh.
4) Sandy Srikanth (7th December 2011) in her study of “Workplace
Discipline Correct Errant Employees” explain the importance of
workplace discipline in an organization. In her opinion, to encourage
self-discipline among the staff, the manager should be self-disciplined
in the first place. Managers should be at work on time, exemplarily
discharge their duties and display self-control in their behavior. When
self-discipline becomes the order of the day in the workplace, the need
for external imposition of discipline will become less.
Review of Literature
21
5) Dilipkumar Datta (Sept. 2011) through his article titled “Industrial
Sickness, in India, Magnitude and Intensity” shows that the problem of
industrial sickness has had adverse effect on Indian economy which
can neither afford unemployment nor loss of production by keeping
capital assets idle. He also states that during the period from 1980-81
to 2002-03, the total number of sick industrial units in India increased
by about seven times. During the same period, the total amount of bank
credit blocked increased by about five times.
6) Payal Chanania (8thJune 2011) in his study of “Authentic Communication
Includes Honest Self – Expression” says that even though so many people
work together day in and day out, the sad fact is that there is little or no
trust in the corporate world. He also emphasizes the need for a natural
style of communication with authenticity.
7) Rajasekher, K.V (2011, June) points out that while effective
communication is important in itself, better business communication is
the pillar that all business and corporate relations stand on. He indicates
7Cs for better business communication namely clarity, correctness,
completeness, conciseness, consideration, concreteness and courtesy. He
stresses that without these skills a manager, though he may be technically
proficient and highly qualified, will find himself at a professional cul-
de-sac.
8) Nitya Sai Souma ( May 25th 2011) in her article entitled “Empathy
forms cornerstone for building good interpersonal relationships” states
that productivity and job satisfaction is always depends upon the way
the manager treats his employees. She also indicates that the manager
should realize the fact that ‘different people react differently in
different situations’. She concluded by saying that enquiring and
practicing empathy is an important element of building good
interpersonal relationships at the work place.
Review of Literature
22
9) Payal Chanania (2011, March) through the article entitled “Know
Manager’s Expectations from You to Excel at Job” states that according
to a recent employee survey, one of the top ten reasons why employees
suffer from workplace stress is the fact that they do not understand what
their employer expects of them. Further he stresses that ignorance of
employees about their boss’s expectations can kill their career.
10) Purnima Srikrishna, N (2011, March) in her study of “Continuous
Learning Will Place You on Firm Growth Path” argues that whenever
an employee finds his work less than exciting, it means he has
outgrown his job and needs some fresh challenges to keep him
engrossed. Continuous learning alone can place him firmly on the
growth path. She adds that in order to enjoy excellent career prospects,
we have to ensure our learning curve is always on.
11) Payal Channania (2011) through an article says that management can
create a conducive environment for self-discipline through effective
leadership. He concludes by stating that managerial attitude should
shift to supporting and coaching, not directing or supervising closely
and constantly. Only then will employees “follow and adhere to the
rules and regulations not due to the fear of punishment but due to the
inherent desire to harmonies in achieving organizational goals.”
12) Chandankumar Sahoo, Dr. and Santhosh kumar Tripathy, Dr. (2011)
have made a study on “Building Work Place Commitment through
Strategic HRM Initiatives”. They suggest that the organizations today
need to change themselves by being more innovative, creative and
people –oriented.
13) Hema Gopalakrishnan (2010) through an article entitled “Effective
Leaders Maintain Self-control Always” says that to be an effective leader,
you must first learn self control; your behavior will set an example for
others and is also crucial for your own professional and personal success.
Review of Literature
23
14) Jagadish Prakash, Nageshwar Rao and Mata Badal Shukla (2010) have
made a study on “Administration of Public Enterprises in India”. They
opine that since the adoption of the new Industrial Policy on July 24,
1991, there has been a move towards liberalization and globalization
of the Indian economy with the result that the PEs are required to face
several challenges. They also suggest that PEs have to improve their
productivity, efficiency and competitiveness and learn to live without
budgetary support.
15) Bhaskar Chatterjee (2010), Secretary, Dept. of Public Enterprises,
Ministry of H & PE, in his speech at the first public sector day
celebration on 10th of April 2010 stated that PEs should place special
emphasis on the corporate social responsibility, talent attraction and
retention so as to ensure their strong participation at a global level.
16) Rajat Kant Baisya (2010) in his publication “Winning Strategies for
Business” describes a comprehensive strategy management resource
that brings together all the business tools that managers need for
surviving business challenges and succeeding in the dynamic economic
environment of today. His book provides a holistic and contemporary
lesson on strategic management by encompassing areas such as survival
strategies, competitive advantage, growth, mergers, globalization,
innovation and portfolio management.
17) Moid Siddiqui (2010) is of the opinion that business is not to kill the
competition, but to maintain a healthy competition where there is an
equal opportunity for everyone to survive and thrive. Through his book
Who Will Bell the Cat?, the author takes the reader through the various
stages of strategic management using a lively narration that parallels the
fable: Bell the cat (evolve business strategy), How to bell the cat?
(strategic management techniques), who will bell the Cat? (locate right
people), make people capable to bell the cat (develop people’s
Review of Literature
24
capabilities) and the cat is belled (align and execute). The author
concludes by saying that managers must think beyond established norms.
18) James M. Hunt & Joseph R. Weitraub (2010) argue that if managers
hope to move ahead they have to keep on learning. The second edition
of their book ‘The Coaching Manager includes new materials and
cases to demonstrate how developmental coaching can be integrated
with goal-setting and selection to create an integral talent management
process that is appropriate at all levels of organizations.
19) Suriyamurthi,S, Dr., Mahalakshmi,V, Lalitha, S (2010) state that the
workplace is changing. Today’s managers are competing for skilled
workers, facing high turnover and coping with technology changes that
occur at warp speed. They also point out that effective managers must
be less product-oriented and more people-oriented.
20) Rao,P.L,Dr. (2010) states that in the present business environment,
management institutes and other training providers undertake various
exercises such as case studies, management games and instruments to
help participants learn more effectively. Through his book Management
Games, the author provides a wide range of management games,
management exercises, role plays, ice-breakers, etc.
21) Durai and Pravin (2010) states that training is significant as it helps the
organization in forming growth skills and competency, effective
utilization of existing human resources, improvement of customer
satisfaction, enhancement of competitive advantage, enrichment of
team spirit, ensuring personal growth, enabling a learning culture,
establishing a positive organizational climate, encouraging better
health, safety measures and enduring organizational growth and
development.
22) York, Kenneth M (2010) are of the view that the purpose of training
employees is to improve their individual capability. Even though
Review of Literature
25
whether the training should be done is a kind of cost benefit
calculation, the improvement in the employee’s job performance should
be greater than the cost of training the employees.
23) Dhamodharan,V (2009) in his study of “Measuring the Skill Sets of
Trained Personnel” states that the success of any training program
depends upon the improvement in morale among the personnel,
productivity, profit maximization and loss minimization. In his paper
the author has taken up the task to evaluate the skill sets of trained
personnel who have already acquired the skills from the training
program.
24) Rajasekhe, K.V (2009) has made a study entitled “Integrated Rewards
System Must in HR Strategy”. In the study the author emphasizes the
importance of recognition and reward system in HR policy that will
prove as a prime motivating factor for people to transform themselves
from ordinary contributors to star performers.
25) Abdulkalam, A.P.J, Dr. (2009), the former President of India states that
“India will only truly shine when it shines for one and all”.
26) Nagaraj, D.R (2009) in his study “Some Lessons in Industrial Relations”
states that ‘never close the doors of negotiation’, keep it always open.
There is a possibility that some new ideas could develop at a later stage to
solve the problem. He advises the managerial category to be humane with
their trade union leaders as also with workmen. If managers are just and
factual but humane in their approach, it is possible to establish rapport and
meaningful relationships.
27) Prasad, G.B.S, Dr. (2009) in his study states that the challenges to the
HR professional during recession and meltdown are to keep the people
ready to move in decisively when the tide turns. However, to keep the
HR costs down during financial crunches, the right sizing of manpower
for the current scenario will be necessary.
Review of Literature
26
28) Chinmay Kumar Podder (2009) points out that attracting brains is
more difficult than Foreign Direct Investment these days. Strategies
are to be framed for overcoming talent shortages. He also states that
a rightly managed talent turns out to be a gold mine. It is
inexhaustible and priceless. It will keep supplying wealth and value
to the organization.
29) Shiv Khera (2009) says that “Successful people do not do different
things, they only do things differently”.
30) Goethe (2009) – “All truly wise thoughts have been thought already
thousands of times; but to make them truly ours, we must think them
over again honestly, till they take root in our personal experience.”
31) Sudeep, P (2009) in his study, “Relevance of Public Sector
Undertakings in India” points out that the public sector still remains the
biggest employer in the organized sector and has a better track record
in smooth industrial relations than the private sector. Often the public
sector offers avenues for people from ordinary social backgrounds to
get jobs with good career prospects. So growth of public sector
enterprises is most important in a country like India.
32) Lokesha.M.U. & Dr. Y.S. Siddegowda (2009) in their paper “Training
and Development Practices- A comparative study of Public & Pvt. Sector
Industries” state that the drastic changes in the business world require
adoption of new values, modified behavior, acquisition of new skills and
competencies and the attitude to run more risk. Such a transformation is
possible only through effective training and development programs.
33) Prasad Rao, D.S.N.V (2009) states that there is a preformed truth in the
HR philosophy that the best organizations succeed not because of the
people they have but because of the right people.
Review of Literature
27
34) Barrie S. Grellf (2009) states that “No one dies from working too hard.
But when people do not get any recognition in their work, the stress of
that lack of control can kill them.”
35) Vasanthagopal, R & Venugopalan. K.V. (2008) have made a study
entitled “Nature & Causes of Disputes in Public and Private Enterprises
in Kerala”. They found that there is no single cause for industrial
disputes anywhere in the world and the causes of industrial disputes in
India are of various categories which differ not only from state to state
but also from industry to industry.
36) Swati Agrawal (2008) has made a study on “Competency Based Balanced
Score Card Model: An Integrative Perspective”. This study emphasizes
that human resource and HR practices are the foundation for achieving
business existence in terms of ROI, market share, employee satisfaction
and customer delight. The paper also explains the implementation of
balanced score card by developing competencies in relation to values of
the organization necessary for achieving business excellence.
37) Premasish Roy (2008) makes an attempt to understand how
performance appraisal and its management are related to change in
organization culture. He also identifies which factors of performance
appraisal and dimensions culture are related so that the corporate
executives could have better performance management to fulfill
organizational goals and objectives.
38) Varadharajan,S (2008) in an article opines that many medium and large
sized organizations in India use the services of external consultants to
take care of their HR functions (Outsourcing of HR). He concludes by
saying that one of the major advantages to organizations, which
outsource their recruitment process, is that it helps to save as much as
39 percent of their recruitment costs. In addition, outsourcing enables
Review of Literature
28
the human resource professionals of organizations to focus on the core
and other HR and strategy issues.
39) Saha, I.K. Dr. (2008) in his study on ‘Human Resource – The Business
of Business’, explains that ‘HR Dept. Can act as torch – bearer’ in
assisting the operating functions in achieving targets in various areas.
He also points out that HR department can act as a catalyst in
generating “fire in the belly” of every employee that nothing less than
the best will be acceptable.
40) Praveen Sabu & Gaurav Jaiswal (2008) through an article found that in
the present era of privatization and internationalization, businesses can
grow and compete only when the employee performance is at par with
the best in the industry. In order to do so, corporate houses conduct
training programs for their employees with a view to updating their
skills and enhancing their efficiency and working performance.
41) Sujoya Sanyal and Praveen Ahmed Alam (2008) in their research
“Employee Counselling: Performance Management Perspectives”
opine that the need of the day is to develop managers who are equipped
with skills of a competent counselor as this would not only enrich the
interpersonal sensitivity and managerial capacity of the manager but
also contribute to the effectiveness of the employee and ultimately the
organization.
42) Chaudhari, K.K, Dr. (2007) who authored “HRM – The Road Ahead”
has provided valuable guidelines on how human resource management
can be used to successfully bring about required changes in the
corporate world. He has emphasized that management professionals
need to reduce their reliance on age old theories and models of
management and should, instead, think out of the box in order to
successfully respond to the changing environment.
Review of Literature
29
43) Mahendru and Sharma (2006) state that a successful organization is
built with its employee’s contribution, a contribution that will not be
effective unless the employees are engaged [involved?] in strategy
decision making and other initiatives.
44) Sumathi Annamalai (April June 2006) in her study of “Evaluation of
Training Programmes: An Exploration” states that continuous learning
is prerequisite for every individual and organization to survive and
develop. Organizations face challenges due to technical and economic
changes and hence the need to prepare themselves to adapt to these
changes. These require upgrade of skills, knowledge and change in the
attitude and perception of individuals and groups. She also emphasizes
the importance of evaluation after every training program.
45) Seijts and Crim (2006) show how leaders can engage employees’
heads, hearts and hands. They state that leaders should actively try to
identify the level of engagement in their organization, find the reasons
behind the lack of full engagement, strive to eliminate those reasons,
and implement behavioral strategies that will facilitate full engagement.
These factors should be ongoing.
46) Elamaram Karim (2006), then Industrial Minister of Kerala argues that
the challenging task for the Government of Kerala is to revive the
manufacturing sector, in order to provide employment to semi-skilled
and unskilled workers of the economy.
47) Sangeetha (2006) stresses that success in business is directly linked to
the commitment of employees and also states that successful companies
are those that recognize opportunities to foster employee engagement.
48) Planning Commission (2006) in its 11th Five Year Plan notes that
“Public Sector Enterprises have made a major contribution to the
economic growth of the country by creating a diversified industrial
base. They have been major providers of organized sector employment.
Review of Literature
30
Some of the Central Public Sector Enterprises (CPSEs) has had strong
financial results over many years and recently some more have turned
the corner.”
49) Misra and Pendse (2005) state that employee engagement is being
increasingly seen as a determinant of productivity at the work place.
While a good salary and benefits package, decent work hours and
conducive work environment help drive employee satisfaction, it is
only if an employee feels a special bond with the organization will he
or she put in what is termed as ‘discretionary’ effort into the job.
50) Douglas, (2004) notes that money compensation and perks are not even
in the top seven factors that indicate satisfaction and retention. Rather,
intrinsic factors like psychological and emotional well-being are the
drivers for employee contentment.
51) Pfau, Bruce N and Kay.T. (2002) say that “we can teach a squirrel to
fly. But it is easier to hire the eagle”.
52) Aswathappa (2001) states that collective bargaining at the firm level is
the interaction between the attitude of management to employees and
unions, the attitude of employees to management, and the attitude of
employees to unions that determines the quality of industrial relations.
53) Yamnill, Siriporn and McLean Gary, N. (2001) review theories and
conceptual frameworks necessary to describe three factors affecting
transfer of training. This information helps HRD professionals
understand why people wish to change their performance after
attending a training programme.
54) Srivastva (2001) through his article “Trade Union Situation in India:
Views of Central Trade Union Organisations (CTUOs)” argues that the
management needs to look at employee empowerment through getting
the workers to take responsibility for shop – floor decisions over
Review of Literature
31
quality, safety, productivity and material use as a strategic option to
develop strong industrial relations.
55) Baccaro (2000) in a study suggests that for the collective bargaining to
succeed government has to be supportive of centralization and
organized employers need to be willing to engage in centralized wage
regulation. Unfortunately, with the advent of globalization, the situation
is quite different.
56) Mushra and Dhar (2000) suggest that the emerging competitive realities
of the new economic order have made it imperative for organizations to
build collaborative relationships between workers and managers, if they
want to succeed.
57) Adams (1999) contends that there is a strong international consensus,
supported by a large range of organizations cutting across political
paradigms, which holds that collective bargaining should be recognized
as a human right at par with fundamental rights like the right to vote
and the right to free expression.
58) Philips (1997) indicates that organizations consider their training
expenditure as investments on human assets. When there is investment,
one wise question would be: “What is the return on investment?”
59) Ramanandham.V.V (1996) states that “PEs has been transformers of
our economy. They have played an important role in the development
processes and borne a heavy proportion of the burdens of national
development”.
60) Thurow Lester (1992) suggests that organizations can buy skills
through hiring, or they can develop skills through training and
development activities. His paper focuses on strategically aligned
training and development systems that advance and sustain the
organization’s competitive position in its market.
Review of Literature
32
61) Bureau of Public Enterprise (1990-91) states that the PEs should not
only make a reasonable profit but should also be able to meet their
requirements of working capital for capital expansion and also contribute
surplus to the national budgetary resources. PEs is also expected to
ensure that their operations yield adequate surplus not only for
replacement and renewal of their assets, but also to meet the needs of
expansion and growth.
62) Narayan,R (1989) in an article entitled “Performance and Development
of the State Level Public Enterprises in Kerala” opined that the
inefficiency of PEs in Kerala is due to labor unrest and lack of
professionalism in management.
63) Singh, K.R.V (1981) has made a study entitled “The performance of
public enterprises during the period 1979 – 80”. He finds out certain
causes for the bad performance of public enterprises such as long
gestation period, adoption of administered price policies, managerial
inefficiencies accountability, role of politicians in policy making, etc.
64) Ullhas Pagey (1981) explains that most of the organizations allocate
very little amount in their budget for training. The reason is that the
return on training investment is very little. In his study he mentions
about a quantitative approach to measure the Return On Training
Investment by a cost-benefit analysis. He finds that higher the ROTI
index, the more effective is the training.
65) Govt. of India Industry Policy Statement (1980) states that “the Indian
industry must earmark substantial resources for Research and Development
to constantly update technologies with a view to optimal utilization of scarce
resources, better services to customer and achieving greater exports.”
66) Nandy (1974) in his article indicates that evaluation of training is as
important as its effectiveness. He also argues that evaluation should be
a continuous process.
Review of Literature
33
67) Dayal (1970) in his study “Management Training in Organization”
states that the effectiveness of training depends on its serving a need
shared by a large number of managers in the enterprise. He also
mentions that the training should be need-based; otherwise it would not
serve any useful purpose and states that this is very fundamental.
68) Hanson A.H. (1954) points out that “Public enterprise without a plan
can achieve something; a plan with out public enterprise is likely to
remain on paper”. He also states that “whatever the ultimate
perspective may be, the country anxious to develop economically has
no alternative but to use public enterprise on a considerable scale, at the
very least in order to get things going.”
69) Government of India, First Five year Plan, (1953) states that “The
scope and need for development are so great that it is best for the
public sector to develop those industries in which private enterprise is
unable or unwilling to put the resources required and to run the risk
involved.”
70) Industrial Policy Statement of Government of India (1945) points
out the role of industrial development in developing economy like
India. The statement points out: “Certain industries must be taken
under central control in the interest of co-ordinate development.
Government should play an active part in the industrial development
of the country.”
71) Winston Churchill (1943) observes that “the empire of the future will
be empires of mind”. He might have added that the battles of future
will be battle of talents.
Review of Literature
34
Source
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2) Tenneti. (13th June 2012). Building two-way trust. The Hindu.
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