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Page 1: REVIEW OF LITERATURE - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/19659/10/10_chapter2.pdfReview of Literature 19 ... industrial sickness has had adverse effect on Indian

2

RREEVVIIEEWW OOFF LLIITTEERRAATTUURREE

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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

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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.

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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.

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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.

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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

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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

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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.

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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.

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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

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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.

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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.

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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

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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.

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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.

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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.

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Source

1) Rekha Murali. (1st August 2012). The dynamics of appreciation at

work, The Hindu, p. 3.

2) Tenneti. (13th June 2012). Building two-way trust. The Hindu.

3) Mir Mohammed Nurul Absar. (2012). Recruitment and Selection

Practices in Manufacturing Firms in Bangladesh. The Indian Journal of

Industrial Relations, Vol.7, No.3.

4) Sandhya Srikanth,V. ( 7 December 2011). Workplace Discipline –

Correct Errant Employees. The Hindu.

5) Dilipkumar Datta. (Sept. 2011). Industrial Sickness in India: Magnitude and

intensity. The Management Accountant Journal. ICWAI pp 782 – 787.

6) Payal Chanania. (8 June 2011). Authentic Communication Includes

Honest Self-Expression. The Hindu.

7) Rajashekar, K.V. (8th June 2011). Master 7Cs for Better Business

Communications. The Hindu.

8) Nithya Sai Soumya. (25 May 2011).Empathy Forms Corner Stone for

Building Good Interpersonal Relationships. The Hindu.

9) Payal Chanania. (30th March 2011). Know Manager’s Expectations

from You to Excel at Job. The Hindu.

10) Purnima Srikrishna,,N. (30thMarch 2011). Continuous Learning Will

Place You on Firm Growth Path. The Hindu.

11) Payal Channania. (2nd March 2011). The Science of Self-discipline. The

Hindu.

12) Chandankumar Sahoo, Dr. and Dr. Santhosh kumar Tripathy. (2011).

Building Work Place Commitment through Strategic HRM Initiatives.

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