CRITICAL REVIEW OF LITERATURE

Importance of Human Resource Management

Human Resource Management is concerned with a holistic approach towards the
management of people working in an organization, who contribute to the achievement of
organizational objectives. Human resource management ensures the most effective and
efficient use of human talent for accomplishing the goals of an organization. IN order to
successfull utilize and manage the human resource of organization to achieve
organizational objectives, each organization needs to develop a well!defined HR strateg
"#garwala, $%%&'.
It is this human resource, which is of paramount importance for success in an
organization and their appropriate development, pave down its foundation. #nd
considering these aspects, the organization can develop, change and e(cel, onl if it
possesses developed human resources ")ulmer et al, $%%%'. *ver firms needs to have
well trained and e(perienced people to perform the activities that have to be done. If
current or potential job occupants can meet this re+uirement, training is not important
",ernardin, $%%-'. .hen this not the case, it is necessar to raise the skill levels and
increase the versatilit and adaptabilit of emploees.
)rom the organizational conte(t HR/ is a process which helps emploees of an
organization to improve their functional capabilities for their present and future roles, to
develop their general capabilities, to harness their inner potentialities both for their self
and organizational development and to develop organizational culture to sustain
harmonious superior subordinate relationships, teamwork, motivation, +ualit and a sense
of belongings "#rmstrong, $%%&'. *ssentiall, HR/ activities are designed to make
people effective in their present job position, which is a part of training function. )or
future unidentifiable jobs, i.e. to develop capabilities for a future position of new
activities within the organization, which are not ver specific at the present stage, it
becomes a part of development function. #s regards this an organization must develop its
training and development practices with due care and caution.
Employee Training
0raining ma be defined as a planned programmed designed to improve performance and
to bring about measurable changes in knowledge, skills, attitude and social behaviour of
employees for doing a particular job "1attanaak, $%%&2 3-'. Nowadas, training has an
additional purpose of facilitating change. #nd management raining is basicall e+uipping
managers with such knowledge, skills and techni+ues as are relevant to managerial tasks
and functions "/essler, $%%&'.
India, through a developing countr, spends 45% billion on training each ear whereas
wealth 67# spends nearl twice as much. *(penditures of such magnitude call for
periodic sharp look especiall since organizations are e(panding fast and there is a
growing demand for finding benefits commensurate with the escalating costs of training
"1attanaak, $%%&'.
.ith the resurgence of the manufacturing sector, the countr is faced with a shortage of
vocationall trained workforce. It is estimated that in India appro(imatel onl &8 of the
workforce is vocationall trained. Hence, leading firms are investing on re!training the
force with multi!skills. #ll of these changes and their conse+uences have made it
imperative for firms to make considerable investments in HR training and development
")ulmer et al, $%%%'. 9rganizations have no choice but to put the recruits through long
training programmes. 0picall, I0 services firms are spending upwards of Rs :%,%%%!
-%,%%% for training one engineer. In the last +uarter of the ear $%%5, Infoss spent ;.;8
of its total revenues on training. 0he compan places great emphasis on regular
upgradation of skills. It also holds regular value workshops to reinforce articulated values
and has also set up a <lobal *ducation =entre and Infoss >eadership Institute in
Msore. 0he firm will invest upto Rs ;$ billion in this centre b the end of $%%&
"#garwala, $%%&'.
.hat toda?s and tomorrow?s training programmes must focus on, are soft!skills such as
interpersonal communication, teamwork, innovation and leadership. Most importantl,
the training has to be comprehensive, sstematic, and continuous and should be closel
linked to the strateg with which the compan is planning to fight the competition
"=outinho, $%%&'. In the future, it is training that will act as catalst between people,
between strateg and sstems, between customers and the organization.
9rganization and individual should develop and progress simultaneousl for their
survival and attainment of mutual goals. 7o, ever modern management has to develop
the organization through human resource development "/esler, $%%&'. *mploee training
is the most important sub sstem of human resource development. #ccording to
#rmstrong "$%%&' training is a specialized function and is one of the fundamental
operative functions for human resource management. It is a short term educational
process and utilizing a sstematic and organized procedure b which emploees learn
technical knowledge and skills for a definite purpose.
9rganization provide managerial skills to emploees at all levels, in addition to technical
skills Managerial skills are provided through management development programmes
whereas technical skills are provided through training "<uest et al, $%%%'. 0hus, while
the former refers to training given to emploees in the areas of operations, technical and
allied areas, the latter refers to developing an emploee in the areas of principles and
techni+ues of management, administration, organization and allied areas.
9ne critical area, which throws up a great challenge to the HR professionals, is managing
the motivation of the managers. In their new found roles as mentors and coaches,
mangers would be at a loss for power and positioning. Man times, the unattended
concerns of middle managers will scuttle the change process. In a well!handled change
forces, the an(ieties and concerns of this level of e(ecutives are addressed with care and
concern. *(ercises like resetting personal goals, values workshop, stress management,
and training in mentoring would help managers enjo new roles ",aum, ;@@5'.
Management development is an activit designed to improve the performance of e(isting
managers, provide a suppl of managers to meet the need of organizations in future and
e(tend the understanding of the management activit. #ccording to Marchington and
.ilkinson "$%%32 $5&' it is a set in the context of social and economic environment,
within unique organizational settings, and is concerned with the individual development
of managers, making a kaleidoscope of permutations.
#ccording to Marchington and .ilkinson "$%%3' training is a process that attempts to
improve emploee performance on a currentl held job b providing the emploee with
the knowledge and skills needed for their present job. It is designed to bring about
changes in specific knowledge, skills, attitudes, or behaviour. #n ideal training effort is
one that meets the goals of the organisations well as those of the emploees.
/evelopment refers to learning opport;mities directed toward helping emploees grow.
<enerall, the term development is used to refer to new learning e(periences provided to
managerial emploees, and hence, it is also called management development. 0he
development opportunities are not limited to improving emploeeAs performance on their
current jobsB rather, development represents efforts to help an individual ac+uire
capabilities beond those re+uired b the current job. Management development consists
of all learning e(periences provided b an organization to upgrade knowledge, change
attitudes, or increase skills in order to improve current or future management
performance ",ernardin, $%%-B =outinho, $%%&'. *mploees with appropriate capabilities
enhance organizational competitiveness and its change adaptabilit. #t the same time, for
the emploees, development e(tends opportunities for career growth. 0hus, development
is future!focussed and benefits both the organization and the individual "7ingh, $%%-'.
#ccording to *dwin ,. )lippo2 C0raining is the act of increasing the knowledge and skill
of an emploee for doing a particular jabC.
#ccording to Micheal D. Duciens2 C0he term training is used to indicate onl process b
which the aptitudes, skills and abilities of emploees toA perform specific jabs are
increasedC "#rmstrong, $%%&'.
7tone "$%%$' argues that training is vital to strengthening emploee commitment. )or that
reason the first step in building commitment is to improve the +ualit of management.
Much has been written recentl about the need for improving the education and training
of our workforce. #ccording to to Horwitz ";@@@' training and development of human
resources in industr has been recognized as an important tool for the development of
desirable motives and attitudes for both the management and labour. 0raining serves as an
important means for the development effective work habits and methods of work and
thereb improves job performance, reduces waste and accidents, prepare individuals for
modified jobs, avoids unnecessar turnover, improved the +ualit of the product and so
on It means no onl merel improved production but also e+uips the, with capabilities for
promotion and health relations ",ratton, and <old, ;@@@'. New programmes ma
encourage emploers and managers to accept organizational change to g, in a better
understanding of organizational goals and philosoph and evaluate economic and social
consideration.