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International Journal of Applied Engineering Research ISSN 0973-4562 Volume 9, Number 12 (2014) pp. 1403-1414 © Research India Publications http://www.ripublication.com

An Overview: Human Resource Performance at Automobile Industry in India

Dr. B. Charith

Assistant Professor, Management Studies, Guru Nanak College, Chennai

Abstract

The focus of this research is how widely renowned automobile manufacturing units under the private sector recruits and trains its workers such that they become better performers in their chosen areas of specializations at the top most car manufacturing multinationals in India. The study uses questionnaire survey and analyses the data so generated using multivariate statistical analysis for interpreting the employer and the employees’ perspectives. Keywords: HRA, Human Resource Performance (HRP) and Appraisal System.

1. Introduction The human resource management is a field of study embodying behavioural science knowledge relating to the working of line staff, officials and union leaders to motivate and develop employees towards attaining organizational goals. The Human Resource Approach (HRA) to the management of employees represents a significant measure of utilizing the human resources in order to accomplish organization goals through the application of behavioural sciences. Of the various resources available to an organization, human resource is a highly essential element. It plays a pivotal role, resources such as materials and capital cannot act and produce anything independently without the application of human resources.

2. Human Resources Performance Regular, Formalized Feedback Performance Based Employee Development The elements considered for study and analysis under each of them, gives rise to certain questions that can be answered with ease from a carefully accomplished survey

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amidst the workers. Such questions as are answered in this study are listed here, for brevity of the purpose of study. There are always any number of external components and elements that impinge on the quality and performance of the workers. Collectively, those components as are influential, either positive or negative, may be put under one big word called the ‘social world’.

Social world stands for, and defines, several of the elements within it, namely: social life of the workers in their home, community environments, values and mores held dear by them and the behavioural (social) space they operate on a day-to-day basis, even as they remain employees of the organization, which offers them a workplace which constitutes several other components, most importantly human resources performances, defined by the nature and characteristics of the workplace. As always, a workplace holds a trilogy of place (plant site, or workplace within the company premises), people (fellow workers and the hierarchies) and work (the elements of work, often defined by the type of work and industry).

3. Social World (Externalities) Social life Community Family Values and Mores Behavioural space And so, social world of the workers is an external influence on their work ethics,

behaviour and performances. Although externalities are considered in the present study, the externalities nevertheless play a vital role in the worker performances in any company: to keep themselves happily engaged in productive enterprises, the workers have to keep their social, community and family life as contented as they could be. Values and mores of a society are a great help in stabilizing the behavior of the workers and this has indeed been proved so in several cases: for example, Indians in America and Indians in Multinational Corporations in India. Behavioural space gets to be disturbed when the externalities of the social world, within the social, community and family realms are not kept properly attuned to.

Industrial work environments are often a creative realm. Creativity is at its best when both internal (work environments) and external (home environments) environments balance each other; that is, one functions without disturbing the other. It is also important that the externalities do not interfere in the functioning of the internalities. Creativity in the internal is often a result of the perfect balancing of the external. Hence, there are agitations in either, which the adjustments (part of the home environments related managerial processes) occur so as to balance the internal.

4. Review of Literature Probing into the relationships between strategic HR orientation and firm performance, the study of Kuldeep Singh and others (2003 a) has added to the growing empirical

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evidence in the field. Carried out in an Indian setting, where the importance of human resources has gained currency in the last decade, the results have shown that there is a significant relationship between strategic HR orientation and firm performance. In an yet another study, Kuldeep Singh and others (2003 b) have reported that the aim of the human resources function management and development in the organizational context is to ensure the availability of competent, motivated and learning employees to the firm to facilitate the achievement of its business objectives. The HR function has been quite successful in performing its role in terms of developing capacity, knowledge, attitude and skills of employees. However, in the recent past, a shift has been taking place in the expected model role from both the HR functions and HR manager.

In the contemporary business environment, human resource (HR) is an indispensable input for organizational effectiveness (Tanuja Agarwala and others, 2003). An effective management of human resources has an important role to play in the performance and success of organizations. Alagaraja and Dooley (2001) in their comprehensive review of literature on the origins and growth of human resource development have found that much of its development is attributed to western (predominantly U.S) thought and perspectives. This study is an effort to explore the significant contribution from a global perspectives including those that are primarily non-western .To do so, this paper identifies and examines key non-western contributions to the field of HRD. There is an ever-growing pool of foundational knowledge in HRD field. But it appears that only a modest body of literature has been written on historical contributions from non-western perspectives to the field of HRD. It is the premise of the paper that inclusiveness of other cultural contributions would facilitate greater understandings of HR development as a relatively new body of knowledge.

In the field of human resource management, there is often need for more cross-national studies. The seminal study of Pawan S. Budhwar and Naresh Khatri (2001) has the main objective of examining a wide range of HRM policies and practices in cross-national and comparative contexts. There is a significant difference in recruitment, compensation, training and development and employee communication practices between Indian and British industrial establishments. Pawan S. Budhwar and Pawan S. Budhwar (2000) have analyzed the practices of integration of HRM into the corporate strategy and ‘devolvement’ of responsibility for HRM to line managers in six British manufacturing industries. The findings are based on a questionnaire survey, in-depth interviews and cognitive mapping methodologies. The results show that over 50 per cent of the firms under study practice a high level of strategic integration. On the other hand, over 61 per cent of the sample firms practice a low level of development practices. Interestingly, both the practices of integration of HRM into the corporate strategy and devolvement of HRM to line managers are largely determined by a number of organizational policies than traditional contingent variables. The adoption of a mixed methodology has been useful in bringing out insights and perspectives useful for emulation and follow-up. Yet another study has however indicated to a homogeneity in Indian management practices (Amba–Rao, Petrick, Jatinder, Gupta and von Der Embse, 2000) as the empirical study compares performance appraisal practices and management values in India by firm ownership.

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Employee performance within an organization can be defined with a variety of ways including their behaviour, attitude and motivation to achieve goals (Ali and Jadoon, 2012). Many of the past research conclude that HR practices are found to be weakly related with performance (Wright and Kehoc, 2008), and various examples about HR practices and employee performance show a positive relation. Although employee performance is considered to be an important factor in organizations, few studies did not find a direct effect of HR practices and employee performance (Qureshi et al., 2010). Many Studies have found that HR practices of staffing, training, involvement of employees and incentives have a positive relation with employee performance and increases the productivity of the firm (Ali and Jadoon, 2012; Qureshi et al., 2010).

Padala (2010) conducted a study to identify the various parameters for employee job satisfaction and organizational commitment. The study revealed that employees have a positive inclination in their intensity of commitment towards their organization. Age, education, nature of the job, length of service and income have negatively relations with the employee job satisfaction as well as organizational commitment. Employees having very active participation in trade union are found to have more job satisfaction and high degree of organizational commitment. Several researches have also examined the relationship between HR practices and employee performance. Different concepts have been discussed to explain the how level of performance of HR practices affect employee performance and a general tendency shows that HR practices have positive impact on individual performance.

Hussain and Rehman (2013) examined the relationship between the HRM practices implemented by the organization on employee’s intention to stay and work effectively for the organization. The result of the study explored that HRM practices viz-a-viz: person-organization fit, employment security, communication and training and development are contributing strongly in developing the employees’ intentions to stay with organization. Further, strong positive inter-relationships were found between HRM practices and employees’ retention and such practices enhances employees’ retain ability of organizations. Lamba and Choudhary (2013) revealed that how HRM practices provide an edge to employee’s commitment towards an organization goal in the global competitive market. The study concluded that HRM practices such as training & development, compensation and welfare activities has significant effect on organizational commitment and are associated with superior organizational performance, which help in retention of knowledgeable and skilled employees.

5. The Need for Study The Human Resources Development is an important factor in determining the growth and prosperity of a firm. The successful management of human resources is one of the indispensable concomitants of sound performance of an organization. The HRD aims at segmenting productive capacity of workers through a provision of required skills and knowledge need for each work force thereby stabilizing their employment, improving their social status and ultimately contributing to the development of the society.


6. Statement of the Problem The Corporate and Industrial sectors have realized that human resources are the most important assets of the organization as they decide the successes and failures of a business entity. The human resources are the most crucial constituent within the organization. It is constantly being challenged by the changing processes of human resources development, which enable them to discover and exploit the inherent potential of human force, to develop the organizational culture and establish a close but cordial support and relationship between the employees and subordinates for making a easy interaction to motivate the human force of the organization. The need for a good number of workers of relevant categories, and utilizing them efficiently, assumes greater importance.

7. The Objectives of the Study The following are the objectives of the present study:

To examine and assess the nature, extent and effectiveness towards evaluating the performance appraisal techniques practised in human resource management in the organization; and

To suggest suitable suggestions and recommendations for policy improvements and best practices based on the findings and conclusions of the study.

8. The Research Methodology The database for the study has been based on both the primary and the secondary data. The primary data have been collected using a well-structured interview schedule, which has questions that are aimed at probing into the effectiveness of performance appraisal in Automobile industry. The sample of workers is 510, chosen from among the different categories of workers of the organizations, have been interviewed to gather ideas on the performances. The secondary data have been gathered from the reports and work and performance related documents. Ideas have been assembled using library sources towards establishing an overview on the employee performances in Automobile Industry.

The collected data have been compiled into databases, processed, analyzed with statistical tools such as the frequency and percentage analysis. The multivariate factor analysis has been applied to retain several factors and the research questions have been answered using the analytical results of the study.

9. Dimensions of Performance of Workers in Automobile Industry There are 33 variable-statements in connection with the appraisal system in place for evaluating the employees based on their performance, although among them are some variable-statements which are connected to periodic orientation, performance reviews, training needs identified by performance evaluation and so on. The other five variables are the socio-demographical ones common to other two analyses as well. The

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executive appraisal system in use does offer employees opportunities for a clear understanding of his or her returning officers, just as it has mechanisms by which the employee and appraiser can have an appreciation of employee’s job, the managers can plan their performances well, and the employee can communicate as to what support he or she needs from his superiors to do his / her job well, the employees can have self-review and reflection.

The appraisal system is so designed that it has: Opportunity for appraiser and employee to reach a common understanding of

performance factors; Facility for a discussion between appraiser and employee on expectations,

achievements, failures, constraints and improvements required; Scope for reflection and assessment on employee’s personality attributes

required for current job; Open communication between appraiser and employee through performance

review discussion; Provision for an employee opportunity to express his/her developmental needs; Scope for correcting biases of reporting officer in review process; Means of strengthening appraiser-employee relationship through mutuality and

trust; Help for interested employees to gain more insights into their strengths and

weaknesses; Scope for helping employee to discover his/her potential; and Scope for communicating top management plans and business goals to staffs

below. Besides, there are possibilities for employees to have orientation on the appraisal

itself. It is also imperative then that the superiors take interest in subordinates discuss key performance areas, key result areas, tasks, targets between appraiser and employee and such discussions are educative to both appraiser and appraised employee. Performance review discussions are of high quality and care. Efforts are made by appraisers to be objective in their appraisals.

HRD Department follows up seriously training needs identified during appraisals. Appraisal data are used by HRD Department for development decisions such as job rotation and job enrichment. Review officers take appraisals seriously and educate their subordinates to overcome personal biases and favoritism. HRD Department provides adequate feedback to line managers on their rating behavior and decisions taken on their ratings.

Performance: Dimension I: Reflections, Expression of Needs, Recognition,

Development Decisions to Discover Employee Potentials S. No. Variable Description Loadings Communalities %

08 Appraisal system has scope for reflection and assessment on employee’s personality attributes required for current job.

0.933 92.5


10 Appraisal system provides employee opportunity to express his/her developmental needs.

0.918 86.5

28 Appraisal data are inputs for recognition and encouragement of high performance and desirable behavior.

0.904 84.6

27 Appraisal data are used by HRD Department for development decisions such as job rotation and job enrichment.

0.882 79.5

14 Appraisal system has scope for helping employee to discover his/her potential.

0.844 73.6

07 Appraisal system provides for a discussion between appraiser and employee on expectations, achievements, failures, constraints and improvements required.

0.840 74.6

09 Appraisal system encourages open communication between appraiser and employee through performance review discussion.

0.824 73.6

15 Appraisal system has scope for communicating top management plans and business goals to staffs below.

0.677 78.9

25 Efforts are made by appraisers to be objective in their appraisals.

0.668 76.9

26 HRD Department follows up seriously training needs identified during appraisals.

0.655 73.5

33 Appraisals facilitate growth and learning both for appraisers and employees appraised.

0.529 56.7

Eigen value 10.511 Variance explained in percentage 24.443 Cumulative variance explained in percentage 24.443

Source: Results of Factor Analysis.

Performance: Dimension II: Review of Appraisal, Feedback and Discussions,

Performance Review, Orientation and Education for overcoming Personal Biases S. No. Variable Description Loadings Communalities %

30 HRD Department actively reviews each appraisal and discusses it with line managers.

0.895 84.6

31 HRD Department provides adequate feedback to line managers on their rating behavior and decisions taken on their ratings.

0.867 79.5

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23 Performance review discussions are taken seriously by managers and sufficient time is spent on them.

0.856 84.2

32 Performance review committees do a thorough job in reviewing and using appraisal data.

0.852 75.5

17 Periodic orientation to explain objectives and other details of appraisal system.

0.814 81.3

29 Review officers take appraisals seriously and educate their subordinates to overcome personal biases and favoritism.

0.639 50.5



Performance: Dimension III: Planning Performance, Discussions, Review and Self-

Appraisals

S. No. Variable Description Loadings Communalities % 19 Reporting officers help employees to plan

their performance in the beginning of year. 0.914 83.5

20 Discussions on key performance areas, key result areas, tasks, targets between appraiser and employee are educative to both appraiser and appraised employee.

0.903 81.6

18 Line managers generally spend time with subordinates discussing their performance.

0.814 67.3

24 Performance review discussions are of high quality and care.

0.806 65.4

22 Executives do thorough job on self appraisal in reviewing, reflecting and analyzing factors affecting their performance.

0.777 60.8



10. Findings and Conclusions For the purpose of appreciation of the findings and conclusions, the summary below is of the most significant findings and conclusions. The important findings and conclusions are encapsulated.


Three datasets have been entered into factor analyses for determining the dimensions of human resources development and management, in regard to Employee Performances in the organizations.

In all of the factor analyses, 5 common socio-demographic variables have also been entered besides scaled data on 33 employee performance related statements in connection with the appraisal system in place for evaluating the employees based on their performance, although among them are some variable-statements which are connected to periodic orientation, performance reviews, training needs identified by performance evaluation.

The 3-factor matrix extracted using the 38 variables account for a cumulative variance of 39.559 per cent.

Although 12 component dimensions explaining a total variance of 71.9 per cent could have been retained from analysis, only three have been retained because such a structure is easy enough to interpret and understand.

The main dimension has an Eigen value of 10.511 and a total variance of 24.443 per cent, while the bipolar dimension has an Eigen value of 3.680 and a total variance of 8.559 per cent and the third and reduced dimension has an Eigen value of 2.819 and a total variance of 6.557 per cent.

The main dimension is designated as ‘Reflections, Expression of Needs, Recognition, Development Decisions to Discover Employee Potentials’ based on the most loading variable-statements.

Among the 11 variables loading significantly, 7 have very high loadings (that is, above 0.800).

The implications of the main dimension that explains a total variance of 24.443 per cent are that the appraisal system designed for evaluating the performance of the employees is absolutely good and that both the appraisers and the appraised benefit out of the process.

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