HUMAN RESOURCE MANAGEMENT PRACTICES FOR ...

HUMAN RESOURCE

MANAGEMENT PRACTICES

FOR INDUSTRY 4.0EDITORS Hardik ShahPoonam ChhaniwalBhajan Lal

INSTITUTE OF MANAGEMENT

Institute of ManagementNirma UniversityAhmedabad

-Book ISBN: 978-93-91355-14-2

Prologue

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ie-ISBN: 978-93-91355-14-2

HUMAN RESOURCE


FOR INDUSTRY 4.0

Prologue


ii e-ISBN: 978-93-91355-14-2

www.groupexcelindia.com

HUMAN RESOURCE


FOR INDUSTRY 4.0

EDITORS

Dr. Hardik ShahDr. Poonam Chhaniwal

Dr. Bhajan Lal

ExcEl IndIa PublIshErs nEw dElhI

INSTITUTE OF MANAGEMENT

Institute of ManagementNirma UniversityAhmedabad

First Impression: July, 2021

Edition: I

Copyright © 2021 Institute of Management, Nirma University, Ahmedabad

Title: HUMAN RESOURCE MANAGEMENT PRACTICES FOR INDUSTRY 4.0

Editors: Dr. Hardik ShahDr. Poonam ChhaniwalDr. Bhajan Lal

ISBN: 978-93-91355-14-2 (e-Book)

No part of this publication may be reproduced or transmitted in any form by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the copyright owners.

DISCLAIMERThe authors are solely responsible for the contents of the papers compiled in this volume. The publishers or editors do not take any responsibility for the same in any manner. Errors, if any, are purely unintentional and readers are requested to communicate such errors to the editors or publishers to avoid discrepancies in future.

Published byEXCEL INDIA PUBLISHERS

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Managing Business in VUCA World: Cases and Experiences

ISBN: 978-93-86724-02-1

No part of this publication may be reproduced or transmitted in any form by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the copyright owners.

DISCLAIMER

The authors are solely responsible for the contents of the papers compiled in this volume. The publishers or editors do not take any responsibility for the same in any manner. Errors, if any, are purely unintentional and readers are requested to communicate such errors to the editors or publishers to avoid discrepancies in future.

Published by

EXCEL INDIA PUBLISHERS

91 A, Ground Floor Pratik Market, Munirka, New Delhi–110 067 Tel: +91-11-2671 1755/ 2755/ 3755/ 5755 Fax: +91-11-2671 6755 E-mail: [email protected] Web: www.groupexcelindia.com

Typeset by Excel Prepress Services, New Delhi–110 067 E-mail: [email protected]

Printed by Excel Printing Universe, New Delhi–110 067 E-mail: [email protected]

Prologue


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PrologueThe book titled Human Resource Management Practices for Industry 4.0 of 26 selected research papers. The various papers selected for the book provide a research based perspective on a whole range of Human Resource Management issues in the context of Industry 4.0.

Rightly mentioned the advent of Industry 4.0 encompasses and era of new promises which could be paralleled to marrying of sophisticated manufacturing technologies with Internet of Things to create manufacturing systems that are not only interconnected, but also are in a position to communicate, analyse and use information to drive further intelligent action.

Against the backdrop of Industry 4.0, organizations have slowly and gradually understood and started appreciating the need and development of culture focusing on lifelong learning and agility. Consequent to this, organizations are leaving no stones unturned to facilitate and ensure that workforce is future ready with the necessary skills.

Needless to say, Human Resource Management practices could be acknowledged as critical given its contribution to the organizational and business performance in the context of Industry 4.0. Traversing its way from being an Industrial Relations (IR) function to more of transforming to a strategic business partner, the field of Human Resource Management has attained a new level of significance. With ‘Agility’ and ‘Pace’ as defining elements of Industry 4.0, People Management practices needs remarkable transition for continued business relevance. Industry 4.0 organizations would essentially demand HR specialists with a knack of understanding and interpreting financial data, ability to scan and understand the sectoral dynamics to bring about desirable changes.

With the spread and augmentation of robotics, artificial intelligence and other technological advancements workforce structures would change and probably in the short run partly cause unemployment. In the long run, the labour force will increase in quantity and quality. The muscular power in the past will pave its way for mind power. The definition of the workforce has changed. Consultants, home office workers, freelancers, brand awareness professionals, and suppliers will contribute to the activities of periodic and project based companies. Reaching out to talent would be big gamble for Human Resources given the context of the needed competencies of digital conversion and Industry 4.0

The current business environment defined and shaped by technology, Internet of Things (IOT), Artificial Intelligence would world provide level playing for organizations. The success or failure of the organizations lies on the superiority of Human Resource Management practices in creating relationships with the employees subsequently leading to compelling employee experiences throughout the important touch points of the employee life cycle.

Paper titled A Study of Competency Mapping and Competency Based HRM examined and analyzed the continuous changes faced by Business Organization due to

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globalization, increasing competition, diversity among consumers and newer forms of technology. To face Global competition organization must employ competent, committed and motivated employees. Competency based HRM is essential for continuous up gradation of skills of employees, to build and sustain organizational competencies, systematic implementation of competency mapping for achieving excellence. The paper focuses on the study of concept of competency mapping, its history and competency based HR functions like recruitment, selection, training and development, performance management and succession planning.

Paper titled HRM in Industry 4.0: Multi-Approach for Organizational Effectiveness aims bring out the imperatives of reskilling, up skilling, and redeployment besides co-creation and collaborative nature of work culture; transitioning with the agile workforce to face upfront the initial impact of Industry 4.0. It also examines the lens with which the issues can be viewed are analytical, industrial, conceptual and adaptive approaches for tackling the impending challenges and leveraging the opportunities in the days to come. The paper comprises of two case studies delineating conceptual models and discussion way forward at organizational and individual level with its relevance to social contract. Theoretical and practical Implications for the practitioners are also discussed.

Paper titled People Centric Digital Transformation for Organization Excellence and Business Success examines and analyses Human-centric digitization. The essential features are data exchange and communication, work-process transformation, skilling and re-skilling towards the digital labour, performance assessment and instant communication with verification & validation on periodic basis. These digitization entrails the HI, AI with machine intelligence. Customer and business-oriented requirement are the main inspiration for human-digitization. In people centric digitization, administrative based leaders will be upgraded to technical leader and traditional industries will transform towards modern & world-class industries for advancement from local to global presence. Every decision on digitalization should be value added on the perspective of customer’s benefit. Business value addition is an added advantage of overall digitalization of the organization, through developing a people engagement planning for domestic industries & country and organizational continuous learning aspirations.

Paper titled Does Global Trade Affects the Number of Trade Unions in India? brings to light that every country performs global trade to increase overall growth of the country but by doing so the macro aspects are achieved and micro factors are neglected. This study aims to determine a correlation between global trade and effects of it on the labor which is associated with the formation of trade unions. To what level can global business I.e. Import and export of goods can impact and influence the labor and the trade unions? Keeping in mind the effects of globalization the data for the year 1991-2013 of imports and exports and number of trade unions were taken for this research. The research is based on analyzing the pattern of imports and exports with formation of trade unions. The result indicated that in early stage of globalization, global trade majorly impacted on the labor market. It decreased the labor benefits and affected the formation of trade unions. Broadly


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Prologue

exports and imports affected the wages of the laborers in India and unemployment rate also increased. Which significantly disturbed the laborers and hence trade unions were formed. Remedial measures like collective bargaining, application of labor laws played vital role in stabilizing the effects.

Paper titled Elements of Employee Relationship Management for Enhancing Organizational Effectiveness in an Era of Industry 4.0 focuses in the present era of Industry 4. 0 where digitalization and automation of operations, the effective ERM framework is acting as a catalyst for creating competitive advantage for organization and in turn enhances organization effectiveness. ERM framework in an era of Industry 4. The purpose of this research is to explore the elements of ERM in an era of Industry 4. 0 using review of existing literature in the form of books, research and academic articles, articles published in the magazines and internet, blogs etc. It is clearly evident that employee relationship management elements in an era of Industry 4. 0 are making significant contribution in enhancing organizational effectiveness and success.

Paper titled Rewards and Recognition and its Effects on Employee Relationship Management demonstrate that the employee’s relationship management has emerged as one of the important tools for motivating employees and enhancing their satisfaction. The objective of this article is to study the effect of key motivational factors like reward and recognition on employer employee relationship which further influences the overall growth of organization. Although work life balance, working environment, shared goals and values, learning and career development, leadership style also affects relationship among workforces. The study result depicts that though there is strong connection between all five motivational factors and employee’s engagement but reward and recognition is most influencing factor which contributes to build harmonious association among employees and employer.

Paper titled Performance of BSE Group Stocks in India contributes in the understanding of the performance of various stock groups of Bombay Stock Exchange (BSE) in the Indian share market. The study was done in order to understand the performance of various stock groups of Bombay Stock Exchange (BSE). The research was focused on the objective to study performance of various stock groups of Bombay Stock Exchange (BSE). Further the research findings focus on the assumed null hypothesis; Average returns of all the groups are same for the group stocks in BSE for the period of ten years. With the help of the different tools used in the study, the returns for the various group stocks were analyzed for the period selected. The research has proved substantially that all the selected groups stocks of BSE for the period selected for the study differed with other groups stocks. Moreover the groups show a similar relationship between themselves.

Paper titled Competency Modeling in IT Industry demonstrates Competency modeling as part of the HR subsystem being adopted and followed by more and more organizations with time. The content in this paper is an amalgamation of primary data, subject material from different articles/research papers, Reviews from various industry HR experts, and insights from university faculties. In this research paper,

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the degree to which competency modeling is used in the IT industry has been analyzed. Service sectors like IT industries rely heavily on the performance and skillset of its different taskforces, the scope of HR in employee heavy industries grows tremendously. IT industry demands knowledge and skillset from the very functional level. Growth of the company is directly correlated with the performance of its employees. Hence to be able to survive in this competitive world, competency modeling is very essential.

Paper titled HRM and Organizational Performance: Does it Really Contribute? This paper is an attempt to explore the HRM-OP linkage, and throw light on the concerns, based on the literature available in the area. A growing wakefulness regarding the significance of HRM practices has been seen in the past few decades. However, designing and implementing an effective HRM system is still a concern for many organizations. Ensuring an effective implementation of the HRM practices, by understanding how particular practices individually or in group shall contribute to organization-wide outcomes is what is required.

Paper titled Employees Experience and Remote Working: Implications for the New Normal explores new methods for enhancing the employee experience during transact from traditional “Work from Office” (WFO) to modern “Work from Home” (WFH) setup. This study would help in analyzing the employee experience in a WFH setup by better monitoring the trigger points as well as the source - whether from the employee end or the employer end. This understanding will help organizations to optimize the proportion of work from home and office in the coming times. The principle findings of this paper are that the stress level of employees has increased due to this abrupt transition; the intensity of the sources of distraction – internally as well as externally generated has increased; and the perceived employee productivity has reduced by 5%.

Paper titled Exploring the Impact of Individual, Interpersonal and Contextual Factors Influencing Employee Innovative Behavior focuses on developing a model with the factors influencing the employee innovative behavior. In this model two conditions are considered, one ‘dissatisfaction with status quo’ and ‘innovativeness as a job requirement.’ Hypothesis of the study is that employee innovative work behavior is related to the three dimensions of self-efficacy that is creative self-efficacy, persuasive self-efficacy and change self-efficacy. And it also hypothesize innovative work behavior is related to the intrinsic interest of the employee. This study explored the multi dimensionality of the concept Employee Innovative Behavior like idea generation, idea dissemination and idea implementation as different dimensions of EIB. Simply focusing on any one of the three dimensions and neglecting the other two is likely to yield low returns on human resource investment in this area.

Paper titled Future of Work: Man-Machine Collaboration (Recruitment) will contribute in the topic of whether humans are to be replaced by machines or are to be added to human help. It discusses about how Artificial Intelligence would be helping human make better choices while recruiting employees. It would also be talking about the various methods that will be used in the future after man and machine collaborate.

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From the paper it was concluded that the replacement of machine for the tedious work of humans will be evident and useful in almost all the sectors and industries. This practice can be used in all types of industries as recruitment for all positions are carried through different methods. This way a win-win situation will be witnessed in the future when man and machine collaborate to bring out better efficiency and productivity.

Paper titled A Study on Happiness among Faculty Members of Selected Colleges across Alappuzha, Kerala has made an attempt to understand the factors influencing happiness among faculty members specifically in Commerce Colleges in Alappuzha District of Kerala. Research findings show that a significant relationship exists between happiness and work context, goals, personality, values. From regression, it could be concluded that 68% of changes in happiness is influenced by work context and goals. Hence, more attention needs to be invested in work context and goals to ensure happiness. An organization can take steps in ensuring the well-being of their employees which leads to an individual being happy in their profession. Education industry too need to shift their focus on the happiness of their employees, since, this in turn affects the students.

Paper titled Employee’s Staying Intention in a Startup: Why and Why Not? discussed the issue regarding employee’s desire to remain with a start-up organization. The factors considered in the research are psychological ownership and affiliation to the workplace”. Through this analysis, experts draw on a trilateral perspective upon this stance of developing and analyzing a typology between the relational ownership of workers, the cohesion of the working relationship and the intent of turnover. The findings suggest that the scale of “psychological ownership” perceived by workers appears strongly linked to employee retention. In comparison, work place partnerships influence the effect between psychological possession and the desire to make a turnover.

Paper titled An Empirical Study on Impact of Dividend Announcement on the Top Three Market Cap Company’s Stock Prices in BSE Sensex aims is to determine the impact of dividend announcement on the stock prices of the company. This paper investigates existence of abnormal returns on the window of 29 days i.e. 14 days before and after the date of announcement including the announcement day. This research will help investors in understanding the declaration impact and bringing transparency in the price changes of the stock market. This study validates the efficiency of Indian stock market as there are not significant changes in average returns before and after the announcement for selected stocks. For the further examination of impact, industry-wise studies can be carried out for the selected events. Econometric models and multiple regression models can be used to measure the statistical significance of the abnormal returns.

Paper titled Antecedents of an Individual Ambidexterity: A Psychological Contract Perspective tried to explore the psychological contract of healthcare employees from the lenses of work practices and how it affects their ambidextrous behavior (Explorative & Exploitative activities). It was found that for the employees in the

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healthcare sector a sense of belongingness has contributed highest in exploration activities followed by work-life balance, rewards, and managerial support. Work-life balance has contributed highest in exploitation activities followed by a sense of belongingness, teamwork and managerial support. The study offers important implications for researchers as well as employers of the healthcare sector and highlights the significance of the psychological contract and its fulfillment leads to the ambidextrous behavior of the employees. In the study, an attempt was made to identify the work practices offered in the healthcare industry and how that is associated with explorative and exploitive ambidextrous behavior.

Paper titled, A Comparative Study between Moonlighting and Non-moonlighting Academicians’ Involvement in their Respective Organization’s Development—A Pilot Study has main objective to compare the efforts made by the moonlighting academicians with non-moonlighting academicians for the development of organization. It is assumed that the efforts might vary with the level of multiple jobs and also the readiness of the academicians to initiate in development of the organisation. The rationale behind doing such research is that, very limited focus is done in such area of research where the efforts of academicians having moonlighting jobs are analyzed. The study would contribute in the field of HRM practices of academicians, opening new horizons and providing future scope of further analysis on such area of research. The future scope of this research would be conducting survey of more respondents so that the results can be generalized and it could guide the faculties, principals, trustees and the professor fraternity at large.

Paper titled Role of HR in Future of Work discusses how the introduction of new technology, such as artificial intelligence, virtual reality, and this Covid pandemic, will impact the future work and the role of HR. With the present disruption within the industry, traditional ways of working became things of the past. This COVID-19 crisis, as a global shock, illustrates once again that HR have an opportunity but also the shared responsibility to make a difference. Changes in working conditions during this pandemic have sometimes resulted in an imbalance of resource allocation. Re-skilling and up-skilling of employees according to changes and challenges in technology and working conditions is become most important

Paper titled Drug Abuse: Issues and Approaches would study the impacts of the legalization of cannabis in US, Canada and the western world. A comparative study post and pre-legalization and option before policymakers in the context of INDIA would be done. At present, 11 states in the US have legalized cannabis for recreational use, and another 16 for medicinal research. The reasons cited included marijuana being a less harmful drug, its widespread use and the fact that decriminalizing it would encourage more conversation around responsible drug consumption. The consumption of cannabis has increased significantly despite the law in 1985, as per research by the Institute of Narcotics Studies Analysis (INSA), a New Delhi-based think-tank. Cannabis consumption and production cannot be controlled in India. There is no point in turning a blind eye to the millions who consume it across the country.

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Paper titled The New-Normal in Education: Comprehending the Stages of Concern through the Concerns-Based Adoption Model (CBAM) is an attempt to understand the various concerns of teachers with the new online methodology using the Concerns-Based Adoption Model (CBAM). The study focuses on the stages of concern and tries to comprehend the stage in which majority of the teachers are. It was found that majority of them are in the collaboration stage. The study also tries to understand the impact of the stages of concern on the psychological well-being of teachers. The concern-based adoption model helps the academic leaders to understand the process of change and how people respond to the new change. And also help them to ensure the success of the change initiative. In this regard this study tried to understand the concerns of teachers regarding the new normal teaching pedagogy and how that will influence their psychological well –being.

Paper titled Marks & Spencer: Brand’s Strategic Expansion and Sustainable Growth in India focuses on understanding the retail landscape and growth journey of M&S and its foray into the Indian market. It also talks about the dynamics of marketing and consumption patterns which are deeply impacted by uncontrollable environmental forces thereby hampering the business growth of any country. Paper also highlights and discusses the challenges and path ahead for M&S in Indian market post Covid -19 scenario. Paper suggests that technological improvements and digital marketing will push Marks & Spencer to attain competitive advantage across various markets. Focus on improving its e-commerce presence and operation to enhance a multi-channel offering would be a success mantra for Marks and Spencer in today’s e-tailing landscape. Eventually the capability to offer right marketing mix for an exceptional customer experience would be a major force in any M&S future strategy globally.

Paper titled Employee Turnover: A Conceptual Framework has proposed a conceptual frame work which shows that the main influencer turnover tariff in the Trivandrum district banking sector. A conceptual framework shows how researchers view concepts involved during the study, especially the relationship between variables. Employee turnover has become a critical problem in the current organization. Management must trigger a further program to find out why employees quit the organization and identify interesting problems and maintain them in the organization. Turnover rates have increased from time to time thanks to many things that support review of previous research findings five factors found related to the change of employees; Namely demographic social factors, organizational climate, work life stress, organizational support and payment.

Paper titled Building Organizational Efficiency and Capacity through Effective Interpersonal Communication reviews through the available literature, the essentials of connecting with other people professionally on an interpersonal level, particularly for managers. It explores how interpersonal communication can help managers to achieve professional excellence. This paper aims to analyse the complexities of interpersonal communication. It proposes to suggest ways of responding to difficult situations and unfriendly and hostile colleagues that may be adopted by

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professionals. An attempt has been made through this conceptual and prescriptive paper to discern the impact of interpersonal communication upon capacity-building.

Paper titled Contemporary Issues in People Management Analysis using the Toyota Way endeavors to study the role of HRM in an organization like Toyota, which has a profoundly different people management model as compared to other traditional companies. Toyota has implemented a collection of coaching values, managerial values, and business methods together known as the Toyota Way - style of people management. These values and methods have been analyzed and then proposed as generic solutions that could be optimized by each Organization. The Toyota Way effectively integrates people, processes, and technology. It ensures that one should focus on the global optima and not focus on local optima. The Toyota Way or system is a continual, coordinated, and comprehensive effort to bring about a change in the leadership and management skills across an organization.

Paper titled Financial Distress among Indian SMEs Listed on National Stock Exchange focuses on assessing the financial health of Indian listed SMEs and to identify the existence of financial distress, if any. The study finds the existence of severe financial distress among the sample SMEs. This is an indication of a very alarming situation. The study identifies the need of immediate measure to prevent an otherwise certain business failure. Asset turnover ratio and profitability ratio are identified to be the most significant ratios affecting the Z-score value. Inference drawn from the study can be of immense interest to various stakeholders including government, regulatory bodies considering the economic significance of SMEs. The financial aspect of bankruptcy is only studied in this paper through secondary data analysis. Future studies can dwell deeper by using primary data for identifying the reasons for the prevailing situation. The data used in the study include only listed SMEs belonging to manufacturing sector. Similar study can be done for service sector SMEs also. Further studies can also be done with a broader sample including non-listed MSMEs.

Paper titled Gen-Z and Gig Economy attempts to analyze various factors that affect the decision making of people to enter into this economy. Some of these factors are family support, societal expectations, income, flexible working hours, so on and so forth. For instance, in India the cultural norm is to have a permanent job with regular income while Gig worker shifts between different jobs and gets paid accordingly because of this they do not receive family support. This research dives deep into exploring the factors that affect the decision making of this generation to become the part of this economy. The research paper helped us understand that there exist various reasons to enter into any kind of job. As the technology is evolving corporate world is also evolving accordingly and so trend of working too. Gig economy has got a greater push due to Covid-19 and many individuals have entered and shifted to Gig economy to earn and gain experience.


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AcknowledgementWe express our heartfelt appreciation to all the authors from academia and industry whose thoughts are contained in this book. Their experiences and thought provoking work presented in this books have far reaching impact. The themes and topics discussed in the book will provide the reader an avenue for understanding of the management of human resource in forth industrial revolution.

We are highly grateful for the constant encouragement and word of wisdom received from our management, especially our President, Padmashree Dr. Karsanbhai Patel , conference Patrons Shri K.K. Patel, Vice President, Nirma University, and Dr, Anup Singh, Director General, Nirma University for their persistent guidance. Our thanks are due to Mr. G.R. Nair, Executive Registrar, Nirma University, for his constructive support. We also express our gratitude to all the members of the advisory council of NICOM-2021 for their valuable inputs and suggestions. We sincerely thank Dr. M. Mallikarjun, Director, Institute of Management, Nirma University for his great intellectual support, resolving issues as well as encouragement for execution and completion of this task.

Mr. Digant Mandavia and Mr. D.M. Patel, Assistant Registrars, IMNU and their team especially Office Superintendent Mr. Mahesh Solanki deserves a special thanks for their administrative support. We also thank the sponsors of NICOM-2021. Thanks are due to all members of Human Resource Management area viz. Prof. Harismita Trivedi, Prof. Shrestha Dabral and Prof. Rajwinder Kaur for their active encouragement in the conception and execution of the international conference. We are also thankful to all our faculty colleagues who have appreciatively given their time and effort for reviewing the papers and helping us to bring out the book within such a short time.

Our thanks are due to all the members of Core Committee of NICOM-2021, for their diligent support. We are also thankful to our students from the DPM program for their whole hearted editorial support. A final word of appreciation is due to Academic Associates Ms. Arpita Katuwa, Ms.Veena Rao and all other staff members for their secretarial and administrative support for NICOM-2021. Finally, our sincere thanks to Excel India Publishers for timely publication of this book within a short period.

Editors

Dr. Hardik ShahDr. Bhajan Lal

Dr. Poonam Channiwal

Contents

u Prologue v

u Acknowledgement xiii

1. A Study of Competency Mapping and Competency Based HRM Ms. Ruta S. Desai and Dr. Arun S. Mokashi 1

2. HRM in Industry 4.0: Multi-Approach for Organizational Effectiveness Arvind Chandrashekar and Ashwyn Chandrashekar 10

3. People Centric Digital Transformation for Organization Excellence and Business Success Dilip Kumar Gayen and Tanuja Kaushik 22

4. Does Global Trade Affects the Number of Trade Unions in India? Pooja Shah 34

5. Elements of Employee Relationship Management for Enhancing Organizational Effectiveness in an Era of Industry 4.0 Pankaj Chavda 46

6. Reward and Recognition and its Effects on Employee Relationship Management Anjali Agarwal and Parikshit Kala 57

7. Performance of BSE Group Stocks in India Aaditya Chandra Tiwary, Prabhjot Kaur, Ankit Mittal and Aryansh Sinha 67

8. Competency Modelling in IT Industry Apoorva Sacheti, Sarthak Chandrana and Shashwat Tripathi 91

9. HRM and Organizational Performance: Does it Really Contribute? Hemaprabha Purohit 102

10. Employee Experience and Remote Working: Implications for the New Normal Anvay Bhargava, Shilpi Sharma and Vanya Sharma 108

11. Exploring the Impact of Individual, Interpersonal and Contextual Factors Influencing Employee Innovative Behavior Saji P.A 119

12. Future of Work: Man–Machine Collaboration (Recruitment) Noble Samuel 127

13. A Study on Happiness among Faculty Members of Selected Colleges across Alappuzha, Kerala Shino Abraham and Sumina Susan Kochitty 138


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Contents

14. Employee’s Staying Intention in a Startup: Why and Why Not? B. Aiswarya and G. Ramasundaram 146

15. An Empirical Study on Impact of Dividend Announcement on the Top Three Market Cap Company’s Stock Prices in BSE Sensex Shikha Gupta, Shlok Pimpalkar, Sonal Gupta and Nikunj Patel 155

16. Antecedents of an Individual Ambidexterity: A Psychological Contract Perspective Anushree Karani, Mitesh Jayswal and Rasananda Panda 165

17. A Comparative Study between Moonlighting and Non-Moonlighting Academicians’ Involvement in their Respective Organisation’s Development—A Pilot Study Dr. Kaushal Bhatt and Jeel Sheth 181

18. Role of HR in Future of Work Sharda Gangwar, Nimisha Maheshwari and Ankita Patel 195

19. Drug Abuse: Issues and Approaches Hariom Gandhi and Anjali Gokhru 202

20. The New-Normal in Education: Comprehending the Stages of Concern through the Concerns-Based Adoption Model (CBAM) Rohini S Nair and Smitha Rajappan 209

21. Marks & Spencer: Brand’s Strategic Expansion and Sustainable Growth in India Priyanka Rawal and Ankush Sharma 219

22. Employee Turnover: A Conceptual Framework Sindhu. S. Pillai, Rincy. V. Mathew and M.K. Prasanth 226

23. Building Organizational Efficiency and Capacity through Effective Interpersonal Communication Monali Chatterjee 234

24. Contemporary Issues in People Management Analysis using the Toyota Way Pramiti Rawat 244

25. Financial Distress among Indian SMEs Listed on National Stock Exchange Sushma Verma, Aakruti Patel and Samik Shome 253

26. Gen-Z and Gig Economy Ishani Jain, Mahima Bachani and Sakshi Agarwal 263

Author Index 284

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1

A Study of Competency Mapping and Competency Based HRM

Ms. Ruta S. Desai1 and Dr. Arun S. Mokashi2

1Research Student, IMCC, Kothrud, Pune, India 2Principal, T.J. College, Khadaki, Pune, India

ABSTRACT

Competency mapping is a process of identifying competencies of employees. Apart from various resources, human resources are the key asset for an organization. human resource management has become very crucial for the survival of the organization in today’s competitive world. Management of human capital is a method of putting together individuals and organisations to accomplish individual as well as organizational objectives. Business organizations are facing continuous changes due to globalization, increasing competition, diversity among consumers and newer forms of technology. Thus, organizations are under tremendous pressure to improve their performance by reducing cost and improving quality. And this is possible only with competent and motivated employees. Organizations must employ competent and committed employees to face the global competition. For this, organizations must concentrate on continuous upgradation of skills of its workforce and hence competency based HRM is very essential.

The main task of human resource management is to build and sustain organizational competencies to achieve excellence. Achieving excellence is based on outstanding staff which is only possible through competency based human resource management. For having the outstanding employees, continuous learning is the key. Systematic implementation of competency mapping focuses on gap existing in the skills, knowledge of the employee; which is essential for the job and this can be improved with competency based HR functions to achieve effectiveness and excellence. This paper is based on the study of concept of competency mapping, its history and competency based HR functions like recruitment, selection, training and development, performance management and succession planning.

Keywords:Competency, Competency Mapping, Competency Mapping Models, Human Resource Management, HR Functions

INTRODUCTIONHuman resource management involves joint efforts of workforce and the organization to achieve individual as well as organizational goals. It is very difficult for any firm to achieve financial goals without healthy relations among its human resource. Increasing developments and competition requires skilled and knowledgeable employees. It is therefore essential to do skill mapping for current and potential


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employees via suitable HRM activities within the company. Globalization has made the organizations in India to realise and consider the shifts in policies, procedures, organization cultures etc. Multitasking is the key to withstand in the today’s competitive environment. Competency is a combination of expertise, skill and mindset essential to achieve high performance with productivity and performance. Competency mapping mainly identifies the competency gaps by comparing expected competencies required to perform a job with the actual competencies of an employee. The method of competence mapping helps to assess how skilled the company and its members are, and it also helps to identify the strengths and improvement areas of the individual employee. Competency mapping helps employees towards career development aspects. Competency mapping has proved to be the most precise method of identifying the competencies essential for an employee to perform the job well.

For a Human Resource practitioner, it is very essential to match the required skills based on the job descriptions to acquire the most suitable human capital. For this, competency mapping plays a crucial role. Acquiring right human resource consumes excess time and efforts which can be reduced with the help of competency mapping. Competency mapping can help to improve employee efficiencies which results in employee retention for the organization. Thus, competency mapping can be expressed as a technique for defining substantial capabilities of the organization, as well as the jobs and capabilities in it.

Generally, competency mapping examines the areas such as emotional intelligence and individual capability in team management, leadership, decision making etc. Competency mapping analyses SWOT for improved understanding as well as to help for job advancement of employees. It also helps in identification of slit for refining skills and knowledge for achieving progress. Organizations are immeasurably changing their methodology or tactics of having multi-skilled employees with comprehensive knowledge of only one skill. The Competency models assists the organizations to achieve exceptional performance as well as it also offers a valuable means to guide employee development. Specific competencies are planned in to competency frameworks to enable employees to understand, converse, and adapt the competencies for successful performance.

Competency Mapping is a way of identifying essential skills in a company and a task. It includes combining competencies through numerous actions like recruitment, training and development, assessment, succession planning etc. Knowledge, hard work, honesty does not guarantee to be an outstanding performer. It requires some additional factors to support an individual to excel in the allocated responsibilities.Organizational psychologists have perfected and changed this in an organizational and official tool known as Competency Mapping. Competency mapping has arisen as the most influential instrument for HR professional in recruiting the suitable or right employee for a particular job and developing the employee to perform the assigned job successfully.


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A Study of Competency Mapping and Competency based HRM

MEANING OF COMPETENCY

The term competence is derived from the word “competere” in Latin and it means “to be appropriate.” In the field of psychology, the idea of competency was originally developed to specify an individual’s ability to adapt or react to the pressure imposed on them by the environment. Competencies are resultant from specific job within the organization.

Components of CompetenCy

Knowledge

Knowledge is an organized body of information that a person mentally holds as a result of proper education, training, or experience. Gain knowledge via learning. It denotes a frame of information associated to performance of a job. It is nothing but the information people should have about how to perform the allotted job. It can also include the knowledge about the recruitment policies and procedures of an organization.

Ability

An ability is the natural talent or developed expertise to accomplish a noticeable activity; e.g., ability to report writing, analysing arithmetic data, skill of planning and organizing the work.

Skills

The job might comprise physical or intellectual actions accomplished through affluence, accuracy by an employee holding the required skill. Proficient use of expertise and abilities is considered as a skill while performing the given job. Proficiencies developed and embraced with the help of practice. Examples of skills can be financial skill like accounting or a verbal skill for required a presentation

Personal attributes

Personal attribute is a tendency on the part of an individual to behave in a particular way. Personal characteristics signify what an individual wants to or will do, as divergent to what the individual can do or has the capability to do. Essential characteristics, which are brought to the task signifying that which knowledge and skill can be developed or established.

Definitions of CompetenCy

“Competence at individual level means an ability of an employee to offer superior performance in assigned tasks.”

—Drucker (1985)

“Competencies are personal characteristics that contribute to effective managerial performance.”

—Albanese (1989)

“Competency is an underlying characteristic of an individual that is casually related to criterion referenced effective and / or superior performance in a job or a situation.”

—Spencer & Spencer (1993)



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“Competency is a measurable characteristic of a person which are related to efficient actions at work, organization and special culture.”

—Hay Group (2012)

HISTORY OF COMPETENCY MAPPING

A prominent royal advisor and prime minister from Vedik India, Arya Chanakya ‘authored a famous book known as ‘Arthashastra’ before 3000 years ago. The first book on competency mapping is possibly this book. Arthashastra mainly explains about the philosophies related to human aptitude, IQ, EQ, the information related with human behaviour regarding work, logic and emotions and about models of competency.

The early Romans used competency profiling to find the characteristics of a ‘Good Roman Soldier’. In beginning of the twentieth century, job became critical and hence required complex skills to perform the given job. Business processes required specific competencies to perform the allotted task. The only ways to acquire such competencies was through years of on-the-job learning and practice it.

David McClelland was an eminent Psychologist of Harvard, who initiated the competency program in the world. His books on “Talent and Society”, “Achievement Motive”, “The Achieving Society”, “Motivating Economic Achievement”, “Power the Inner Experience” etc. carried out numerous levels of competencies. These competencies given by McClelland dealt with the affective domain in Bloom’s terminology. The article published in 1973, in American Psychologist by David McClelland brought a turning point in competency movement. In this article, he explained that traditional marks or scores can not predict the success at job and what is more important is develop the competencies required for the job to improve the performance. These competencies can be measured using various techniques of assessments. Later, David McClelland and his associate Berlew, initiated McBer a consulting firm. McBer specialized in competency mapping of industrialists and managers across the world. They developed an innovative and simple method for mapping the competencies known as Behaviour Event Interviewing (BEI).

In short, a Harvard University professor, David McClelland (1973), introduced the concept of competency mapping in his thesis “Testing competence rather than intelligence”. Later Boyatzis popularised the concept of application of competency to management (Boyatzis R.E., 1982). Then Raven conducted study on competency in practice (John Riven, 1995). Related study on competency mapping and its practices was summarized by Spencer and Spencer and proposed Iceberg Model as well as the Onion Model. They created a record of competency models (Spenser and Spence, 1993).

The Department of Management Sciences in China in 2006, undertook a project on competency based HRM in organizational behaviour and supported it financially. Today, competency model is a popular and an important practice in human resource management.


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MEANING OF COMPETENCY MAPPING MODELSThe competency model is a paradigm for identifying a task’s abilities and expertise criteria. The model of competence is a set of competencies that determine positive and efficient job results. In organisations, it is widely used for defining and assessing competencies. These models are an important component of recruiting and placement, workforce growth and success improvement roles.Competency modelling approach originated before 45 years ago and it has become very crucial in human resource management. The method is evolving continuously in response to frequent global changes in business and to address specific needs of the organization.

DifferenCe in Job AnAlysis AnD CompetenCy moDelling

• Job analysis is focused on understanding tasks and skills required to perform tasks. Whereas competency models are focused on personal characteristics essential for success in job.

• Job analysis is focused on effective performance based on the views of job holders and other experts about what is essential for effectiveness and according to competency modellers, best performers provide insight about it.

• Job analysis includes long lists of tasks and skills required whereas competency models involve a set of underlying characteristics of individual.

• Competency models focus on distinguishing top performers from average performers.

• Competency models include description of how competencies develop with employee level.

• Competency models consider future job requirements directly or indirectly.• Competency models are linked to objectives and strategies of the business

organization. • Competency models are used to support HR systems.

reAsons for orgAnizAtions Developing CompetenCy moDels

Organizations use competency models to increase productivity and effectiveness of the workforce to achieve business results and this is achieved through:

• Reducing percentage of wrong hires to ensure competent person is selected for the right job.

• Competency based training programs to improve the employee productivity.• Developing competency based succession planning to select competent

successor. • Frequent assessment of important competencies during the performance

reviews helps to enhance business results.• Precise competency model based on values and vision of organization helps to

meet the strategic objectives of the business.• Well defined competency model support talent management in the organization.



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COMPETENCY BASED HRM

meAning

Human Resource Management focused on competency mapping is nothing more than applying the idea of competency and competency gap findings to update and optimize HR roles such as recruiting, placement, training & growth, incentives, performance management, etc.

Competencies stand for language of achievement. Competencies communicate the anticipated results from an individual and the possible ways to carry out these activities. It provides a common language to describe the expected performance in different contexts.

Competency-based Human Resource Management focusses mainly on individuals and then on their performance or results. Competencies are everlasting, but the activities and tasks are temporary. Job descriptions are improved with the help of competency models and thus they can be used as a base of HR system in the organization. Competency based Human Resource management, considers human point of view than job oriented approach and this forms the foundation of the HR functions.

Development of competency based HRM started in USA and Western European countries from the beginning of 1990s. Competency based HRM is a new trend in human resource management which focuses on management, development and utilization of the employee competencies. This changes the role of HRM from only recruitment, training and development and appraisal to utilization and development of employee competencies. With the help of competency based HRM, all the functions of HR can be linked to competency as indicated and explained below. It is refereed as competency management cycle. The main aim of competency management cycle is to create a workforce that is engaged and motivated, so these employees will grow and will contribute their knowledge to the organization to achieve desired results. Five steps of Competency Management cycle are as follows:

Recruitment and Selection

This step involve strategies and tactics to create and maintain talented and skilled employees for organization. Competency based recruitment and selection improves the performance level of employees because it results in placement of right person at the right job at the right time. It also attracts applicants who possess the required characteristics. It also helps the organization run effectively if rapid or sudden changes take place. Reduction in training time can also be seen if competency based recruitment and selection is implemented. But the success of competency mapping based recruitment and selection is based on communication of up to date work performance requirements. These are required to be communicated by the organization to employees. The mismatch between the requirements and applicants will not give expected results to the organization.


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On-boarding

It embraces the on boarding process for the new jonnies. This can comprise supervision and support to switch to new job roles.

Training and Development

This step is associated with providing employees with required skills and knowledge to perform job role. It also helps in learning of new skills. In any organization, training and development function play a key role in improving necessary skills and reduce the skill gaps if any. If the training and development programs are based on competency then the training programs can be customized according to the skill gaps and it will thus reduce the unnecessary time and efforts of the organization and improved competencies of the employees.

Performance Management

It contains giving feedbacks on employee work performance and providing recognition for successful performance. The concentration of performance management system based on competency would not be on outcomes but how these results are achieved. The main aim here is based on the development of employees rather than on results only.

Succession Planning

This includes mentoring programs, employee development programs, training opportunities required to achieve strategic goals of the organization. It helps to identify the skill set required for the positions which will be vacant due to retirement, transfer or for any other reason and also the top positions which can be filled by the suitable candidates with set of required competencies.

Fig. 1.1 Competency Management Cycle



Recruitment and

Selection

On boarding

Training and development

Performance management

Succession planning

Recruitment and

Selection

On boarding

Training and development

Performance management

Succession planning

Fig. 1: Competency Management Cycle

Competency based human resource management can be applied based on the requirements of the organization, expected results from employee’s perspective rather than from job position perspective. Competency-based Human Resource



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Management is based on implementing competency mapping and the results of competency mapping to notify and enrich the HR functions such as recruitment, selection, training and development, performance management, succession planning. Organizations can be said to be using competency based human resource management when its’ all HR functions are focused developing competencies of its employees.

CONCLUSION

In this constantly changing business environment, identification and development of employee competencies is a major task for the managers to ensure fast organizational growth and development. As the scenario is changing rapidly, the competencies essential for effective performance also keep on changing. And hence, identification of current level of employee competencies and developing the required set of competencies for achieving desired results is very crucial.

It highlights that every organization need performing employees for the required job roles and this is possible only when the competent candidate is selected for the right job. Along with competency, motivation, organizational culture, processes, job satisfaction etc also effect on the employee performance.

Organizations have started considering its human resource as an asset of the organization and to get a competitive advantage, organizations have started to attract, retain and develop its human resources using various techniques. Thus, they are trying to improve employee skills and motivate them to learn and develop new competencies. For this, organizations are developing and implementing competency based human resource management to have competent employees and achieve organizational objectives.

REFERENCES[1] Dr. Didem Engìnoglu and Dr. Cenk Laçin Arikan (2016). A Literature Review on Core

Competencies, International Journal of Management (IJM), Volume 7, Issue 3, March-April 2016, pp. 120–127, http://www.iaeme.com/MasterAdmin/Journal_uploads/IJM/Volume_7_Issue_3/IJM_07_03_012.pdf

[2] David C. McClelland (1973). Testing for Competence Rather Than for “Intelligence” American Psychologist January 1973

[3] Raven, John. (2001). The McClelland/McBer Competency Models. Competence in the Learning Society (pp.225-235).

[4] Richard E. Boyatzis (2007). Competencies in the 21st century. Journal of Management Development Vol. 27 No. 1, 2008 pp. 5-12

[5] Prof. Pooja Tripathi, Dr Jayanthi Ranjan and Dr Tarun Pandeya (2010). PAKS: A Competency based model for an Academic Institutions, International Journal of Innovation, Management and Technology, Vol. 1, No. 2, June 2010

[6] Dr. Mohammad Abu Faiz (2014). Organization’s Core Competencies; A Key for Successful & Happy Organization, International Journal of Accounting & Business Management, Vol. 2 (No.1), April, 2014, Page: 06-16


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[7] Vikram Singh Chouhan and Dr. Sandeep Srivastava (2013). Competency Mapping For HR Professionals In IT Industry, The International Journal of Management, Vol 2 Issue 3 ( July, 2013)

[8] Prof. Lakshmi Narayana. K and Dr. K. Gayathri Reddy (2014). A Study on Competency mapping of the employees in Textile Manufacturing Companies with reference to Bangalore city, Acme Intellects International Journal of Research in Management, Vol- 6 No. 6 Apr 2014

[9] Mohammad Ahmed Abdullah Alsabri and BelqesMutarAlaraqe (2015). Core Competency Mapping and Skills of Employees for Enhancement in IBM, India, Acme Intellects International Journal of Research in Management, Social Sciences & Technology, Vol- 10 No. 10 Apr 2015

[10] Preeti Jayachandran Nair (2012). Is Talent Management Accentuated by Competency Mapping? : With Special Reference to Educational Sector, International Journal of Social Science & Interdisciplinary Research, Vol.1 Issue 11, November 2012

[11] S. Praveen and Dr. R. Karuppasamy (2012). Competency Mapping of the Employees in the Manufacturing Companies with Special Reference to Coimbatore - A Study, International Journal of Social Science & Interdisciplinary Research, Vol.1 Issue 11, November 2012

[12] Prof. R Ramakrishnan (2006). Competency Mapping, Emerging Trends in Business Research, Easwari Engineering College, Chennai

[13] Michael A. Campion, Alexis A. Fink , Brian J. Ruggeberg , Linda Carr , Geneva M. Phillips And Ronald B. Odman (2011). Doing Competencies Well: Best Practices In Competency Modeling, Personnel Psychology 2011, volume 64, Issue 1, 225–262

[14] Leanne H. Markus, Helena D. Cooper-Thomas, Keith N. Allpress (July 2005). Confounded by Competencies? An Evaluation of the Evolution and Use of Competency Models, New Zealand Journal of Psychology Vol. 34, No. 2, 117–126

[15] Dr. Richard S. Mansfield (2005). Practical Questions in Building Competency Models, Workitect Inc.

[16] Nancy E. McTigue, Richard S. Mansfield (2013). Competency Model Development and Application to Meet Water Utility, Workforce Needs, Water Research Foundation, Denver.

[17] Vikram Singh Chouhan & Sandeep Srivastava (Jan. 2014). Understanding Competencies and Competency Modeling—A Literature Survey, IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 1. Ver. I, PP 14-22

[18] Reenu Mohan (2013). Using Competency Models for Performance Management, International Monthly Refereed Journal of Research In Management & Technology 91 Volume II

[19] James C. Hayton, Alan P. Warnick, Steven H. Hanks (2005). A Competency-Based Model for Developing Human Resource Professionals, Journal of Management Education 2005; 29; 383, DOI: 10.1177/1052562904267538

[20] S. Tamilarasi (2015). Managing Human Resource Through Competency Mapping, Paripex – Indian Journal of Research, Volume : 4 | Issue : 11

[21] https://flylib.com/books/en/2.309.1/an_overview_of_competency_based_hr_management_practices.html

[22] https://drive.google.com/file/d/1iJxBxpTur2FxqSoSIfKY9xKEN4evaeYS/view

[23] Kaushiki Tripathi, Manisha Agrawal (2014). Competency Based Management In Organizational Context: A Literature Review, Global Journal of Finance and Management, Vol. 6, pp. 349 – 356, ISSN 0975-6477


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2

HRM in Industry 4.0: Multi-Approach for Organizational Effectiveness

Arvind Chandrashekar1 and Ashwyn Chandrashekar2

1Madras School of Economics University of Madras, Chennai 2Engineers Regiment, College of Military Engineers, Pune

ABSTRACT

The descriptive paper embarks upon four different approaches and three in dealing with the HRM for industry 4.0. The aim of the paper is to bring out the imperatives Of reskilling, upskilling, and redeployment besides co-creation and collaborative nature Of work culture; transitioning with the agile workforce to face upfront the initial impact of Industry 4.0. It also examines the lens with which the issues can be viewed are analytical, industrial, conceptual and adaptive approaches for tackling the impending challenges and leveraging the opportunities in the days to come. The universality perspective, the other two being contingency and configuration perspective forms the alternative basis for bracing the rapid advancements in technology and the speed with which likely disruptions are inevitable. Trends and contemporary challenges are dealt with in detail using a pilot study based on survey method. Inferential and descriptive statistics have been utilised for the empirical study to establish the relationship between variables under study.

It is expected that the aforementioned approaches and perspectives will give rise to fresh grounds for theory building and knowledge sharing the diverse approaches with its inherent advantages, that throws open vistas for experimenting, planning and deriving the benefits of becoming market leaders rather than being laggard. The paper comprises of two case studies delineating conceptual models and discussion way forward at organisational and individual level with its relevance to social contract.. Theoretical and practical Implications for the practitioners are also discussed

INTRODUCTIONThe galloping advancements in robotics, augmented reality, machine learning (ML), artificial intelligence (AI), autonomous systems, edge computing, software as a service (Saas) and the internet of things (IoT) are not only disrupting traditional and existing technologies but harbinger paradigm shift in various sectors like manufacturing and service industry. Industry 4.0 portends an inflection point with far reaching ramifications from product life-cycle, corporate culture to stakeholders and customers being at the epicentre of all activities. In 2011, Germany coined the word “Industry 4.0” for denoting the digital transformation taking place in manufacturing. Industry 4.0 has since created a revolution and a game changer within industry.


Multi-Approach for Organizational Effectiveness

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One of the main advantages of Industry 4.0. is optimization by reinventing with smart factory that consists of multitudes of new level of connectivity having inter-connected Smart Devices that are able to self-optimize production leading to an almost zero down-time. The paper begins by identifying what is Industry 4.0 and Organizational effectiveness, and then review a diverse body of research to discover what we know about their relatedness.

Organizations that keep abreast of the rapid advances in the information and communications technologies, and leverage them to optimize productivity and manufacturing processes are going to gain irrespective of any time horizons. They lend themselves to more mass customization and niche personalized value-creation, production, make faster and better decisions; agile, flexible, enabling better monitoring and implementation of policies and strategies. Industry 4.0 foreshadows lean, continuous, incremental improvement and replace with fast, breakthrough or step-change improvement thereby impacting culture, leadership and the way organizations function. A pictorial depiction in Fig 1 is made for easy assimilation of Industry 4.0.

Fig. 1Source: Boston Consulting Group Discussion on Industry 4.0

The aim of the paper is to bring out the imperatives of reskilling, upskilling, and redeployment besides co-creation and collaborative nature of work culture; transitioning with the agile workforce to face upfront the initial impact of Industry 4.0. The lens with which it examines the issues can be viewed are analytical,



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industrial, conceptual and adaptive approaches for coping with the impending challenges and leveraging the opportunities in the days to come. The universality perspective, the other two being contingency and configuration perspective, forms the alternative basis for bracing the rapid advancements in technology and the speed with which likely disruptions are perceived as inevitable. Trends and contemporary challenges that affect organizational effectiveness are dealt with in detail using a pilot study based on survey method.

CLUSTERS OF DISRUPTIVE TECHNOLOGIES• Big-data, enormous computing speed and memory, with improved connectivity

– low-power, WAN • Data Analytics and AI, • Human-machine interface e.g., touch screens and augmented reality. • Conversion of Digital-to-real world entities e.g., Cobots and 3D printing.

As manufacturing sectors embarks upon long-term investment cycles, it must be capable of :

• Push OE to the next level, • Be adaptable to changing business models, and • Getting prepare for digital transformation.• Protection, security especially in operations and proprietary data becomes vital.

UBIQUITY IN COMPUTINGInfluence of disruptive technologies can be made advantageous when simplified and integrated work processes are in place. In all likelihood networks usage will get accelerated:

• Judicious and better resource utilization • Efficient consumption of resources• Reduction of waste and human error• Enhanced productivity and organizational effectiveness

HRM AND INDUSTRY 4.0 The effects on value creation and distribution by reconfiguring of business models due to the embracing the new normal still evolving. The approaches may differ based on type of sector. However, it is visualised that adoption agile and lean workforce for organizational effectiveness will remain the focus of Industry 4.0.

Industry 4.0, by utilising computer technology at an entirely new level, will enhance production. It is perceived that co-creation due to collaborative nature of work within horizontal organization would gain more prevalence.

Digitalization has made the world a smaller place by eliminating time and distance which will affect production, processes and reciprocated by the environment. There is likely lag in availability of skilled manpower at the right time unless upskilling is



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carried out well in advance. In addition have the capability not only to keep pace with the advancements but be adaptive to absorb the initial impact seamlessly. There will be need to reconsider communication in a new perspective both for internal as well as external stake-holders. The resultant would affect the functions of HRM like recruitment, training, succession planning and modelling fresh career paths. Contingent workers would be on the increase. Multi-cultural work force in different time -zones will have to tackled parsimoniously through structural changes in the HR department.

First as social environment changes, say in service industry e.g., hotel enterprises too must change rapidly and with accurate reaction. Second change is the knowledge economy caused by transformation technology as seen in Industry 4.0. becomes fundamental. The foundation being knowledge, so the organization members need to equip as knowledge experts specific to the field in which they work, through continuous learning to identify and solve all kinds of problems. The main task of management is to create the stimulus to drive learning, in order to adapt to the fundamental transformation, build the model of learning organization with creative ability (Zhu 2014). With the coming of age in the use of virtual HR organization structure, the enterprises tend to be the central function of HRM control in private hands, and outsourcing company is only responsible for preparatory work or routine work, upgrade the quality of services, to help the hotel get the advantage in the fierce market competition. “Reengineering the hotel HR organization efficiency is the process of comprehensive improvement and integration, though careful thought, to implement is necessary” (Zhu 2014:3)HRM cannot depend on the traditional approach. They have to transform with a growth mindset and embrace HR 4.0.

• Identify the skill-deficits as needed for foreseeable industry of the future e.g., Digitisation and immersive learning.

• HR must become more adaptable, agile and digitally focused to retain the competitive advantage.

• HR must reconfigure how they network and communicate with stakeholders both internal and external clients.

• HR must accept that the people-centric decisions are slowly shifting towards department and groups

• HR must be innovative in reskilling and upskilling at various levels and empower its employees.

AnAlytiCAl ApproACh

Industry 4.0 heralds new challenges across diverse sectors leading to social problems that require an analytical approach rather than any other approach and determines the probability of solving it. Above all, an analytical approach uses an appropriate process to dissect a problem into its smaller segments and pieces necessary to solve and if need be break them down into further subproblems, and so on. Each smaller piece becomes easier to solve. Moreover, it is methodologically driven and is often used to view the respective constituents of a problem in order to provide a clear



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explanation about its very nature. In other words, it is a kind of ‘formal analysis’ aiming at the bottom of a complex structure by explaining the ways by which its internal entities are organized, interact and can be applied in all processes.

inDustriAl ApproACh

Even though the industry-wise skill-sets needed maybe common, yet the level of skill-sets needed will vary from domain to domain due to organizational size, structure, policy in vogue and strategies adopted, besides the core values pursued. Further the stage at which the transformation would take place will determine the efficacy of change envisaged. Green technology would always over-ride the emerging Industry 4.0 as mankind grapples with the new-normal. Focus on agile workforce would of necessity render learning and development to take precedence without forsaking the employee engagement and organizational effectiveness. Environmental concerns would be inbuilt in the technology and more stringent compliance can be foreseen. Despite the enhanced level of consciousness on externalities, matching consumer behaviour and matching the swiftness with which the changes in technological output occurs. Social media networks and aggressive marketing may become more.

ConCeptuAl AnD ADAptive ApproAChes

Very much like the 2K hysteria, the aftermath and its speculations, very little change occurred at the grass-root level . Similarly, the Industry 4.0 is bringing about changes in mindset, speed of adaptation, and above all pervasively affect all walks of life. As change is inevitable, no business wants to be left out but also wrest the completive advantage. Adaptability would become imperative to the envisioned alterations in processes, operations and diverse management functions becomes a reality. Flexibility on absorbing change, by being prepared in advance and handle data-driven decisions in the knowledge economy would be order of the day. Electing to implement Industry 4.0 though welcome involves a radical change.

orgAnizAtionAl effeCtiveness

The organizational effectiveness can be assessed based on the output/outcome, the production capacity of its products, the reduction in rework, improvement in quality etc. A resource based view would assess the optimal utilisation of resources. The strategy adopted and policy for implementation would describe the effectiveness derived.

REVIEW OF LITERATURE

Pankaj Kumar (2019) sectors studied the association between performance and OE among Indian manufacturers. Since business enterprises are constantly faced with a VUCA world, they have to find ways and means to alleviate any debilitating scenarios. One such study where the dynamics of the external environment On a Polish enterprise was examined involving dimensions of stability/ changeability and its interdependence on friendliness /unfriendliness and in turn its influence on organizational effectiveness Chudzi ski, P. & Cyfert, S. (2019).



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Amah, E. and Ahiauzu, A. (2013) deals with banks in Nigeria to examine the relationship between autonomy, team performance, and capacity building with OE. It was brought out that any increase in the former had a corresponding increase in the latter and is associated with organizational effectiveness.

An empirical analysis on Algerian SMEs determined the nature of impact of organizational effectiveness due to the inherent characteristics of SMEs. It was found that centralisation, , Entrepreneurial kind of decision-making, leadership style (authoritarian) and typical Algerian entrepreneur who gives importance to Continuity, autonomy, being growth oriented were some of the features that were favouring organizational effectiveness.

The significance between Job Characteristic (skill variety, task identity, task significance, task autonomy, and task feedback) and Organizational Effectiveness (job satisfaction, organizational commitment, and turnover intention) due to enablers was studied by Kim, M. D., & Lee, C. H. (2016). It brought out the importance of stress free work environment (Premkumar & Ramamurthy, 1995; Panda & Ramanathan, 1996; Bozeman, 2000; Cohen, 2004.)

The modalities of value creation, manner in which communication is changing and operations or the processes and expansion of automation in the workplace are under perpetual flux are undoubtedly some of the indications of what’s in store for the future. There are speculations on the effect of Industry 4.0 on workforce employability and nature of skills-sets that would be in demand. about how these transformations affect workers, organizations and societies.

RELATIONSHIP BETWEEN WORKERS AND TECHNOLOGY

The manner in which technology is affecting people’s well-being and expect it to affect employment in the future. The ubiquitous nature of information and communication that is going to take place dictates the way job transformation will influence requirements for knowledge and skills. Advent of Cyber-Physical Systems (CPS) the blending of hardware and software that can interact with humans to complete work), artificial intelligence and machine learning (Baldassari and Roux, 2017) are some of the features anticipated in the new era.

Collaborative and adaptability, considering hard and soft skills, is required and expected in the work of the future , the changes are going altering the dynamics of jobs, workers and organizations alike and needs to be studies under organizational, political and institutional levels are discussed.

Cobots, robots and automated machines have made ingress into the new integrated workplaces, where they are reckoned as social actors within the system; social acceptance has gained prominence as a critical aspect in their design and implementation (Redden et al., 2014). The fallout could be a reduction in human interactions and hence relationships within the workplace, with potential negative consequences in terms of informal learning, organizational commitment, motivation and well-being.



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Studies that have utilised the job-demands resources approach have shown the positive role of co-workers’ informal acceptance as a resource that can bring down costs related to job demands, being optimistic towards achievement of goals, and driving learning and development atmosphere (Bakker and Demerouti, 2017). Thus, it is essential to recognize and develop fresh opportunities for human interactions within the dynamic working environments. Bringing in innovative and advanced technological systems can possibly bring about lack of autonomy and skills that, in turn, can produce stress, demotivation, and counterproductive work behaviours (Cascio and Montealegre, 2016).Besides an increasing need for employees with enhanced IT skills and specialized technical expertise, a crucial role will also played by soft skills, e.g., continuous learning, flexibility, the ability to work in multi-functional teams and to deal with complex situations. The existing skill deficit is noticeable among graduates leave university and that in several cases they are not even aware of the significance of these skills sets necessary for the future workforce (Ghislieri, 2017).

TECHNOLOGICAL EFFECTS ON WORK AND ORGANIZATIONS Four well known technologies namely electronic monitoring systems, robots, teleconferencing, and wearable devices are considered. There are advantageous as well as disruptive effects of emerging information and communication system that are widely used in the above mentioned technologies. The manner in which businesses create and capture value, how and where the work takes place, and how the interaction and communication occurs all play its role in the outcome. There are other IoTs like cloud and mobile computing, big data and machine learning, sensors and intelligent manufacturing, advanced robotics and drones, and clean-energy technologies. (Cascio and Montealegre 2016:350)Novel ways of control, coordination, and collaboration on activities are available at lower costs, largely ordained by the law of diminishing costs. As more and more digital resources become accessible, processed, transferred, and stored irrespective of geographic location or time-zones, borders and spatial distances are no longer impediments as they were earlier. Innovative and new business models e.g., Airbnb, Uber, Ola, Zipcar, My-Taxi, Car2go, Duolingo are emerging and are impacting in ways not seen before; where even major players have been found wanting. Not only that, even society has welcomed with open arms. It has changed how organizations evolve and work to capture market share. The concept of ubiquitous computing refers to an environment in which computational technology permeates almost everything, thereby enabling people to access and control their environment at any time and from anywhere. Industrial sensors and processors, speech-recognition and eye-tracking devices, mobile gadgets, RFID and near-frequency-communication tags and labels, GPS-enabled devices, smart televisions, autonomous car navigation systems, array of drones, wearable sensors, robots, and 3D virtual reality, are some of the others that cannot be missed without mentioning its inroads in various segments of everyday life among others. The implications for privacy, security, and personal space are equally essential in how the organizations are organized.



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Industry 4.0 will impact the total functioning of the organization from organization strategy to manufacturing and from the design of products and services to productivity (Bassi, 2017).

METHODOLOGY

Questionnaires survey method was used online. Inferential statistics have been utilised for establishing the relationship between variables under study. Managers and supervisors in the Industrial cluster at Guindy and Ambattur combined in Chennai were studied. The independent variable, “employee involvement” was measured by empowerment, team orientation, and capacity development. OE was measured using a five–point Likert scale (anchored 1=strongly disagree to 5=strongly agree) and Spearman’s rank correlation was used to test the hypotheses.

DATA ANALYSIS AND DISCUSSIONThe respondents age pattern were as indicated in Fig. 2. The graph indicates more employees in the lower age group as compared to above 60 years. Also the ration of female to male employees were 60.9 % as against 39,1% females. Because the selection of criteria of organizational effectiveness has important effects on the strategies that organizations pursue, it is important that the selection be done thoughtfully and critically.

Fig. 2: Respondents Age Distribution

The Institutional effectiveness process is systematic and broad-based.

Fig. 3



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Overall, the organizational structure of the institutions you are associated is sound and effective.

Fig. 4

There is somewhat agreement across current literature with regards to the consequences of Industry 4.0 in terms of a necessary intensification of cross functional collaboration as well as cross-company networking. Though, the latter aspect has been debated in some of the recent articles. Some authors are rather sceptical in their assessment on the initiatives of German industrial companies towards cooperation with competitors. Those industrial companies are facing the risk of losing their competitive advantage and may consequently lag behind American technological companies such as Google or Apple, who are aggressively trying to enter traditional industries like mechanical engineering and automotive also by intending to leverage on the expertise of their network partners (Maier & Student, 2014; Sommerfeldt, 2015).

Cobots

Collaborative robots (cobots) are robots that are capable of collaborating with humans thereby enhance human abilities in a safe way. In comparison, robotics deployments that do not assume human-robot collaboration typically function independently from humans, and often reside in a cage. They can also be programmed to stop when a human enters the facility where the robot operate. This, in turn leads to unwanted delays in operation or production, which can be avoided through the use of Cobots.

finDings

The descriptive statistics of the explanatory variables indicate that employee involvement positively influences organizational effectiveness. The result (r=0.511, p<0.05) shows a positive significant relationship between employee involvement and profitability. The result (r=0.127 p<0.05), (r=0.249, p<0.05) shows a positive relationship between employee involvement and productivity and market share respectively.One of the limitations was that the result cannot be generalized because the study was carried out only in two clusters of SMEs. The second limitation was that out 350 only 250 responded resulting in 71.43% response rate. One of the reasons could be ascribed to fear of leakage of information to the competitors.



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The other limitation could be that the socially acceptable syndrome maybe at the back of the mind of respondents that cannot be ascertained accurately. The other limitation is that we only assess the implications for employment of structural shifts in employer demand. In practice, however, employment opportunities will arise when workers retire from the workforce (or leave for other reasons) and need to be replaced. Indeed, replacement needs are expected to provide significantly more job openings than employment growth over the next decade. Even those occupations where employer demand is otherwise expected to fall may still offer attractive career prospects. As such, incorporating estimates of the age structure of the workforce to predict replacement needs would complement our approach and assessment of future employment opportunities.

The study revealed that any increase in employee contribution will directly enhance OE. Jobs currently performed by humans which are routine and repetitive and mundane will be substantially replaced by robots or digitalisation. There is likely to be structural changes in the economy, such as the long-term drop in the consumption of coal, and hydro-carbon as cleaner sources of energy become more popular.

The article contributes to better comprehension and appreciation of human behaviour by analysing the relationship between employee participation and OE , thereby significantly enhances knowledge on the OE.

Upskilling in digital skills is a target that is fully advocated by the European Digital Single Market Strategy (Negreiro, 2015), which implies that digital inclusion projects with the objective of tackling and reducing the digital divide, according to which there still exists a divide between people who have access to specific information technology and people who do not.

The impact of the organization strategy on the successful implementation of Industry 4.0 should be studied in different sectors. Such studies will help to clarify the variations in success factors across different types of sectors. Industry 4.0 will change the relationships between organization and environment, organization and communities, organization and value chains, organization and humans and future studies can be directed as to what components of organizational strategy must be designed for considering these changing relationships. The level of digitization within the Industry and the success of Industry 4.0 would need to be classified in a typological analysis.

CONCLUSION In this article, the focus was on the importance and influence of Industry 4.0 and the Internet-connected technologies for the creation of value addition for organizational effectiveness and society. The results of the research reviewed here suggest that commitment can also have benefits for employees, making it a potential win-win situation. The study contributes to the understanding of Industry 4.0 and the Intern related technologies. The findings were based on the review of the literature and confirmed the assumption that the business value of the IoT technology is significantly higher than is reflected by the number of devices.



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Managers need to encourage practices for OE without compromising ethical standards and environmental concerns. A scenario where hyperconnected and data saturated networks, and a world where an Internet of everyone is linked to an Internet of everything would become a reality. The paper also attempted to presents the role that technology, particularly information and communication technology, has a predominant role in changing work and organizations. Second, it consolidates on the advancement, course, and purpose of the current research related to technology and work in organizations. Third, it illustrates the implications for future research that go far beyond the fundamental effort to align technology and the work done in organizations.

Since the current literature is scarce, research should foremost target in deepening our understanding of the inextricable connectivity between workers, organizations and technology. Pursuit of longitudinal studies would be specially of big assistance in examining the effects of technology on people’s performance, well-being and motivation, and understand whether and when these are positive or negative. Nevertheless, at this stage, preliminary evidence is needed in order to direct future research and decisions, and this could also come from cross-sectional studies. Moreover, it might be useful to focus on specific contexts and categories of workers to draw accurate conclusions, using both qualitative and quantitative methods to build up knowledge in this field.

To sum up, under the prevailing backdrop of intense market competition, how to use the HRM to build organizational effectiveness of enterprises in general and manufacturing industries in particular, basically to gain competitive edge over others is of prime importance. Service industry and HRM strategies as partners to the development of organizations will directly affect the enterprises sustainability and growth, whether it is contemplated from resource point of view or of human capital, or from the integration of human resources observation, HRM is the key to gain competitive advantages. Therefore, HRM comes under focus, in enhancing effectiveness of the organization, strengthen the service innovation, so as to promote the enterprises to gain the advantages of sustainable development.

REFERENCES[1] Amah, E. and Ahiauzu, A. (2013). “Employee involvement and organizational

effectiveness”, Journal of Management Development, Vol. 32 No. 7, pp. 661–674.

[2] Bakhshi, H., Downing, J.M., Osborne, M.A., & Schneider, P. (2017). The future of skills: Employment in 2030. Pearson.

[3] Bakker, A.B., & Demerouti, E. (2017). Job demands–resources theory: taking stock and looking forward. Journal of occupational health psychology, 22(3), 273.

[4] Bassi, L. (2017). “Industry 4.0: hope, hype or revolution?”, 2017 IEEE 3rd International Forum on Research and Technologies for Society and Industry (RTSI), IEEE, pp. 1-6.

[5] Bozeman, B. (2000). Technology transfer and public policy: a review of research and theory. Research policy, 29(4-5), 627–655.

[6] Cascio, W.F., & Montealegre, R. (2016). How technology is changing work and organizations. Annual Review of Organizational Psychology and Organizational Behaviour, Vol.3,No.1, pp.349–375.



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[7] Chudzi nski, P. & Cyfert, S. (2019). Organizational effectiveness of Polish enterprises in the context of changeability and unfriendliness of an environment. Management and Production Engineering Review, 10.

[8] Cohen, S. (2004). Social relationships and health. American psychologist, 59(8), 676.

[9] Frey, C.B., & Osborne, M.A. (2017). The future of employment: How susceptible are jobs to computerisation?. Technological forecasting and social change, 114, 254-280.

[10] Ghislieri, C., Molino, M., & Cortese, C.G. (2018). Work and organizational psychology looks at the fourth industrial revolution: How to support workers and organizations?. Frontiers in psychology, 9, 2365.

[11] Kerbouche, M., Belmimoun, A., Bouhelal, F., & Imen, K. (2015). The impact of organizational characteristics in effectiveness (Algerian’s empirical study of small and medium enterprises). Mediterranean Journal of Social Sciences, 6(2), 277.

[12] Kim, M.D., & Lee, C.H. (2016). A study on the relevance between workers’ job characteristics and organizational effectiveness by job stress in small & medium sized enterprises. Journal of digital convergence, Vol. 14, No. (5), pp. 207–215.

[13] Komarova, N.V., Zamkovoi, A.A., & Novikov, S.V. (2019). The Fourth Industrial Revolution and Staff Development Strategy in Manufacturing. Russian Engineering Research, 39(4), 330-333.

[14] Mishra, G.P., Mishra, K.L., & Mishra, R. (2018). Leadership, Organizational Effectiveness and Entrepreneurship in Small and Medium Enterprises-A Study in Indian Context. Academy of Entrepreneurship Journal, Vol. 24, No. (2), pp.1-12.

[15] Panda, H., & Ramanathan, K. (1996). Technological capability assessment of a firm in the electricity sector. Technovation, 16(10), 561–588.

[16] Pankaj Kumar (2019). ‘Relationship between Performance Management System (PMS) and Organizational Effectiveness (OE): Manufacturing Enterprises in India’, SCMS Journal of Indian Management, ISSN 0973–3167, Vol. XVI, No. 3, pp.79–88.

[17] Premkumar, G., & Ramamurthy, K. (1995). The role of interorganizational and organizational factors on the decision mode for adoption of interorganizational systems. Decision sciences, 26(3), 303-336.

[18] Roblek, V., Mesko, M., & Krapez, A. (2016). A complex view of industry 4.0. Sage Open, 6(2), 2158244016653987.

[19] Sommerfeldt, N. (2015). ‘Die Angst vor dem Nokia-Effekt. Welt am Sonntag (11/2015), p. 10.

[20] Sony, M., & Naik, S. (2019). Key ingredients for evaluating Industry 4.0 readiness for organizations: a literature review. Benchmarking: An International Journal.

[21] Zhu, F (2014). ‘Consideration on The Effect of Strategic Human Resource Management on Organizational Effectiveness in Hotel Enterprises, 3rd International Conference on Science and Social Research (ICSSR 2014), pp.1250–1254.


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3

People Centric Digital Transformation for Organization Excellence and Business Success

Dilip Kumar Gayen1 and Tanuja Kaushik2

1, 2G.D. Goenka University, Gurgaon

ABSTRACT

Digital transformation is a process of adopting digital tools & techniques to achieve strategic goals for business success. Usually, it is an intricate procedure with multi-layered interventions which requires immense Techno-cultural modifications and upgradation in the system & workplace through the transformation approach for positive impact in all functional areas of a business.

Digital transformation (DT) is integration of the digital technologies of all functions of an organization with its’ operations and processes. Primarily and necessarily the transformation aimed at and delivering the additional values for customers. It is both procedural and cultural revamp acquaintance with industry revolutions that entails organizations to quash the incessant challenges from market-based performance, explore opportunities for achieving business goals.

Through industrial reforms which influences more digitization, is somewhat imagined as alternative of people involvement and substitute of human effort. But these practices are establishing the people-centric improvement approach, includes the consistent communication around the changes & benefits are being made in the organization; especially to their customer through process overhaul, clarity of roles, performance with responsibilities, people engagement on an individual & functions level, integrate in strategic management of individual intelligence and over-all innovation management.

In Human-centric digitization, the essential features are data exchange and communication, work-process transformation, skilling and re-skilling towards the digital labour, performance assessment and instant communication with verification & validation on periodic basis. This digitization entrails the HI, AI with machine intelligence. Customer and business-oriented requirement are the main inspiration for human-digitization. For manpower-oriented working, technological innovations may be secondary, but people’s working process modernization with modifications through transformation becoming more essential in industries. Productivity and quality perspective, country employment or not de-humanization are the mediating factors for digitalization. In people centric digitization, administrative based leaders will be upgraded to technical leader and traditional industries will transform towards modern & world-class industries for advancement from local to global presence.

Keywords:DT – Digital Transformation, HI – Human Intelligence, AI – Artificial Intelligence, HCD - Human Centred Design, AI – Artificial Intelligence, VR – Virtual Reality, AR – Augmented Reality, IIoT – Industrial Internet on Things, IIoT – Industrial Internet on Things, CPS – Cyber Physical System, CAGR - Compound Annual Growth Rate, APAC - Asia Pacific Accreditation Cooperation Incorporated



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ABOUT DIGITAL TRANSFORMATION AND BUSINESS SUCCESS

overview of DigitAl trAnsformAtion Digitization is the change in the data from Physical to different digital formats too easy to use & communicate, makes the operation centres more available and accessible. Digitalization utilized in business for overall improve in compatibility for global standards & practices. Digital Transformation is sufficed through technology, culture, operations and value addition in delivery & total supply chain, people involvement and customers’ delight. Digital transformation for an enterprise starts with rethinking and evolutional approach through new, user friendly, changing environment, capable the platform-based business model with resilience. Digitalization is the application to improve through radical change in business for generating revenue and customer support through simplified operations.

DT is a planned process by analyzing customer needs and experimenting with new technology & leveraging technology to improve the operation & process timings, continual adaptation & exploration to a constantly changing business environment & eco-system.

The DT could be classified in four areas of transformations; first, technological transformation; second, internal process & total supply chain transformation; third, transformation of business processes and forth, human-centric transformation. These are based on application IT interventions, business excellence model, working in various domains, caters the implementation of various industry revolution techniques and improvement in cultural of working in an organization. Organization and management essentially focus to all four areas and levels for significant value additions.

Figure 1: Various Aspects of Digitization

Figure 2: 9 Elements of digital transformation

Aspects of Digitalization

Areas of transformations

Technological transformation

Internal process & total supply

chain transformation

Transformation of business processes

Human-centric transformation

IT interventions

Establish system for monitoring &

controlling

IIoT, CPS

Online Data and management

Cloud Computing

Application business

excellence model

Organizational Excellence

Operational Excellence

Implementation of planned

Improvement

Application of Techniques for Improvement

Implementation of various industry

revolutios & evolutions

Define the Techniques of improvement

Cultural of working

Performance based

Management

9 Elements of Digital transformation

Understanding

customer’s &

organization’s benefit

Cconcurrence with

top-prioritized growth in business

Develop customer

&business interaction points

Implement the

process digitization with reengine

ering

Worker enablement

through improveme

nt

Performance management, monitoring

&improvemen

t

Digitally modifications for next generation business

preparation

New digital

mode of business operatio

ns

Global expansio

nthrough digital mode

Fig. 1: Various Aspects of Digitization



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Digital Transformation has many-fold impact in organization, these are productivity, quality, speed of customer delivery, agility in total supply chain and corporate values. Digital transformation creating the opportunity for Small and Medium-Sized Enterprises (MSMEs) in the areas of project management through application of digital project management software like making masters work progress, electronic sign-off, customer relationship management etc., which impacts in process improvement with automatic starter, human-machine collaboration, such as Robotic arm handlers in complicated and dangerous work, online Quality inspection and product Approval through mistake proofing (poka-yoke) with automated sensors with alarm or stop the process during mistakes and use of optical sensor detection during final checking.

Value additions through project on people management are contact of people in real time, increase the efficiency of people-to-person communication, 24hr control progress; in process improvement, it is through increase in machine utilization rate, increase in output, and reduced manufacturing costs. Digital method of Quality inspection increases the yield & time by reducing in over-engagement of human in operations & human error, and reduce in administrative overhead costs.

The key influencing factors for digital transformation in most of the businesses, are related to planned & enormous investments, use of digital technology, develop digital management and, techniques & processes of e-commerce applications. Covid-19 pandemic and struggling of engaging workforce, tempted management to introduce more people-centric digitization.

9 Elements of digital transformation are; understanding customer’s & organization’s benefit, concurrence with top-prioritized growth in business, develop customer & business interaction points, implement the process digitization with reengineering, worker enablement through improvement, performance management, monitoring & improvement, digitally modifications for next generation business preparation, new digital mode of business operations, global expansion through digital mode or follow the global operational for customers with new leadership approach.

Figure 1: Various Aspects of Digitization

Figure 2: 9 Elements of digital transformation

Aspects of Digitalization

Areas of transformations

Technological transformation

Internal process & total supply

chain transformation

Transformation of business processes

Human-centric transformation

IT interventions

Establish system for monitoring &

controlling

IIoT, CPS

Online Data and management

Cloud Computing

Application business

excellence model

Organizational Excellence

Operational Excellence

Implementation of planned

Improvement

Application of Techniques for Improvement

Implementation of various industry

revolutios & evolutions

Define the Techniques of improvement

Cultural of working

Performance based

Management

9 Elements of Digital transformation

Understanding

customer’s &

organization’s benefit

Cconcurrence with

top-prioritized growth in business

Develop customer

&business interaction points

Implement the

process digitization with reengine

ering

Worker enablement

through improveme

nt

Performance management, monitoring

&improvemen

t

Digitally modifications for next generation business

preparation

New digital

mode of business operatio

ns

Global expansio

nthrough digital mode

Fig. 2: 9 Elements of Digital Transformation

To deal with constant change, people expects their individual involvement which matters and they are integral part in the organization and will provide a sense of purpose & urgency. These will help in positive response in the effects of encouraging them to work in a perpetual state of change & challenge for benefit. Establishing a



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sense of workplace community is essential, at this time when digital technologies reduces direct interactions with co-workers and customers.

RESEARCH METHODOLOGY This study followed various techniques applied in the industry for operational excellence to make market-oriented business advancement through productivity, conformance of quality and speed of production. Various organizations and plants are studied and implemented the required system and process techniques for digitization for local & global customers, corporate decision making for better formulating the strategy on investment in technology, process and people centric initiative for making the company competitive and efficient. Internal analysis also conducted for comprehending the impacts on human performance and application of intelligence on digital interventions with cost benefit analysis.

LITERATURE REVIEW

To make these article industry specific informative, numerous studies are covered with review of national and internal journals & publications. Various case studies discussed and presented on people and technology centric initiatives in the countries participated in the conferences conducted by Asian Productivity organization (APO) Japan, China Productivity Council (CPC), Taiwan. Effectiveness of People centric digitization are discussed with various resource persons of Japan, Taiwan, Singapore, presentations from MIT university, and India with paper presentation on various countries contributes to develop this paper.

Studied literature covered the concept of new industry evolutions with revolution through Industry 4.0 & 5.0 techniques, which encompasses the techniques of IIoT, CPS, AI, HI, Layer devices, digital data acquisitions and monitoring with cloud computing on delivery and feedback system (Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).

MANAGERIAL IMPLICATIONS OF DIGITAL TRANSFORMATION People-centric digitization is a strategic decision endorses by top management. As it is a radical change through transformation of overall techniques and processes of utilizing and managing people in the existing or next level improved system. Following significant aspects are related to comprehension for business implications of human-centric digitization in the phases digitalization of any organization and that industry.

Figure 3: Structure of Managerial implications of digital transformation

Figure 4: Departmental Initiatives in Human-Centric Digitization

Figure 5: Road Map for Preparing People Participation in The Digital Transformation

Managerial implications of digital transformation

Role of individuals in people-

centric digitization

People-centric

digitizationin business

Establish the digital literacy as a driving

force

Business understanding and resilience of digital transform

ation

Social use of

digitization

Core concern

in technolog

ical growth

Disruptions to the

future work of

digitalization

Technological

advancement

through digitalizat

ion

Manage digital

technology

Dep

artm

enta

l Ini

tiativ

es in

H

uman

-Cen

tric

Dig

itiza

tion Attributes of a people-centric approach

Transformational evolution in roles & leadership

Develop effective communication for better engagement

Implement agility in working

Digital leadership

Fulfil the employee expectations

Road Map for Preparing People Participation in The Digital Transformation

Evaluating opportunities for

digital transformation

Define values envisaged through

such initiatives

Make these initiatives as

people-centricThe benefits of these initiatives

Execution plan of such initiatives

Fig. 3: Structure of Managerial Implications of Digital Transformation



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role of inDiviDuAls in people-CentriC DigitizAtion

The role of individuals in people-centric approaches are work with purpose and achieving target, move out from easy to proactive zone, learn for relearn and for gaining applicable knowledges, follow and adopt the culture of training as a learning. It establishes re-skilling & e-skilling for up-skilling, be lean and agile in resources for expected results, performance-centric management and distribution of responsibility, comprehending the values and processes of continuous leaning for continuous improvement.

people-CentriC DigitizAtion in business Business use the people centric digitization with the process for establishing the adaptation method, digital exploration competency among people, collaboration with external agencies, prioritize the digital-first approach, tolerance in the beginning period, develop strategic policy through feedback, invest in training programs, scheme of digital adaptation and organizational performance through digitalization.

estAblish the DigitAl literACy As A Driving forCe Organization needs to establish the business resilience through digital literacy as a driving force for the future working, communication and data acquisition. First, digital literacy is related to; Technological digital literacy through using internet platforms, social media to make corporate standing on digitalization. Second part is human digital literacy through re & e-skills, digitalized work recording, innovations in working, e-safety, cultural & social understanding, critical thinking & evaluation of human involvement. Third, in human-literacy, most important is the cost of literacy with customer’s satisfaction and making technological literacy among individuals. Forth is business excellence in literacy for digitalization which is mostly market and customer driven for process agility thinking and collaborative approach for business expansion, targeted for result and superiority. Other concepts in the digital literacy are information literacy and media literacy which are applied and extend on utilization of various digital mode for literacy, and adopting the managerial approaches for problem solving.

business unDerstAnDing AnD resilienCe of DigitAl trAnsformAtion

Business understanding and resilience of digital transformation consists of business priorities, enhance the process capabilities, making the digital-first mode for momentum in implementation, acceptance of new emergence of conversion, application of data driven decisions, make significant for instant decision, promote the collaboration with cooperative attitude. It also accommodates the upgradation in skills and competencies, do work specialization in technological & technical digitization, count & measure the impact on the total system & functions for business with required arrangements, comply the government policies and regulations with step-by-step graduates through readiness.

soCiAl use of DigitizAtion Social use of digitization encompasses with prevention of criminal’s activities, instant and extended reach of total banking procedures for all public and all places in the



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country. It will increase the accessibility of the common people, industry employees at all sectors and people centric utilisation of technology with successful application of digitalization.

Core ConCern in teChnologiCAl growth Study based implementation and upgradation of the significant areas of process and business is the key areas technological growth. Technological growth also caters the cultural growth and managerial efficiency with management preparedness through application of AI, VR and AR. It also impacts on the emerging market in Asia Pacific.The Asia Pacific digital transformation market accounted for US$ 138.94 Bn in 2017 and is expected to grow at a CAGR of 26.9% over the forecast period 2018-2025, to account for US$ 825.11 Bn in 2025. (www.marketwatch.com). The global digital transformation market is expected to grow at a CAGR of 22.7% from 2019 to reach $3,294 billion by 2025 (www.meticulousresearch.com).

Disruptions to the future work of DigitAlizAtion Socio-economic challenges, the stiff challenges in the industries of food, health, storing process, Anti-covid-19, improvement through could computing, remote users, innovative & warm services on new business model. Problems to solve in resiliency are the factors of industry ecosystem and applications with high values, toughness for local manufacturing in sustainability, smart living in bearable environment and, potential for forever changes in flexibility, speed and transparency.

teChnologiCAl ADvAnCement through DigitAlizAtion

Impact of technological growth is the future opportunities in human literacy and business planning with digital disruptions to the future work with the perspective of socio-economic challenges, technological advances and employee management with their expectations.Technological advances through digitalization, it the prime point of future of factory (FoF), with application of smart manufacturing cells, smart factory and service system, and improving supply chain in production management. It is also significant for smart scheduling, process simulation & optimization, quality control with data statistics and flexibility in common fixtures.Digital technologies are applying in material and it’s processing, human & artificial intelligence and automation at factory level with additive manufacturing. Recycling and life-cycle of technologies are enhanced, new addition in energy and power supply technologies. In FoF, Lean manufacturing techniques are applied for agility and better value addition. In Operation, digitization value adds in products, customers, reengineering, planning, man-management, developing smart factory, total support, reengineering and IIoT with application of Industry 4.0 manufacturing, for mostly use in operational excellence for goods & services. Organizations are developing the IIoT Infrastructure in products and production, field level shop-floor control, shop-floor applications, enterprising at various



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gateways in traditional pyramid through Robots model identification of parameters with accuracy, high precision and continuity.

mAnAge DigitAl teChnology

It is related the methods on how the People centric technology and digitalization for business and customers are implement as per the planning and profitability with various process reengineering and process benchmark with revolutionary business redesigning and evolutionary change management. Theory of reasoned action (TRA) with innovation diffusion theory, Technology Acceptance Model (TAM) with various variables are used as drivers for digital transformation by organizations (IT Adoption).

Through digitization, organizations managed the external pressure with Professionalism of IS (information system), unit with external information sourced by top management support, for better customers experience with their expectations, perceived usefulness and managing the behavioural intention.

DEPARTMENTAL INITIATIVES IN HUMAN-CENTRIC DIGITIZATION The mission of the human-centred digitalization is to digitally enabling the functional departments of organisations to exploit the full potential of emerging technologies and its’ analytics by creating high-tech knowledge on best suitable methods in both the individual and their organisation. Human centred design in digital transformation and Human centred design (HCD) is a framework crucial & vital to any and the culmination of essentially resolving the real human and business complications. With cultural touchpoints, digitalization uplifts the working of an organization more technically dependence and less reliant on human effort to create & accelerate an enterprises’ digital transformation initiatives. It applies to make great companies with great people, big theme and great values. Following are the interlinked factors for human centric digitization.







People-centric



force


ation

Social use of

digitization

Core concern

in technolog

ical growth

Disruptions to the

future work of

digitalization

Technological

advancement

through digitalizat

ion

Manage digital

technology

Dep

artm

enta

l Ini

tiativ

es in

H

uman

-Cen

tric

Dig

itiza





Digital leadership






such initiatives




Fig. 4: Departmental Initiatives in Human-Centric Digitization



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Attributes of A people-CentriC ApproACh

Major attributes and practices that set people-centric approach consist of; reliable communication around the planning & the changes are being made, especially to those on the front line of the organization; clear definitions of roles and responsibilities in daily work & digitalization; people engagement in assigned process at a personal level; and a strategic approach to talent & innovation management. To engage in constant improvement & change, people should realize that it does matters in the organization and business progress.

trAnsformAtionAl evolution in roles & leADership

Transformational evolution in roles & leadership in digitization is the process which the successful companies develops leaders that are intensely engaged and committed to the transformational change through persisting advancement. These stimulating leaders in the organization generates umph, develops consent, and inbuilds the company’s mission. Leaders are for change and catalyst for whatever the situation for any process constraints or digitization.

Develop effeCtive CommuniCAtion for better engAgement

In an effective communication employee are engaged to boost the workplace productivity & performance, can increase and drive business growth. Develop the effective platform of communication is the keystone for engagement of manpower in overall digitization. Workforce always represents its most significant drivers, who controls & regulates the success or advancement of any organization.

Some methods to improve digital communication in the workplace are introduction of a new & latest technological platform for communications, training employees on the new platform, thoughtful communication with efficiently with professionalism, schedule the communications correctly by using the probable digital communication through e-mail, cell phones, videoconferencing, instant messaging, text messaging, blogs, wikis and through other latest medias.

implement Agility in working

Agility can be termed as readiness & inclination to change; it is ability to change and the nimbleness one exhibits when adapted to change rapidly. This is significant feature for future in creating agility in workplace. In this method organization achieve agility with potentiality to improve the processes and outcomes. It also increases the potential for strategic growth for organizations to empower & utilize people, squeeze disruptions, and experiments to realize the change as to use for achievement.

Five main aspects of learning agility are mental agility, people agility, change agility, results agility, and self-awareness to build the far-sighted thinking in the changes as a scope. Many companies adopted the agility as method of working for speed in execution. Agile methods & process of working make that happen by shaving time from processes, simplifying decision making, and engaging as well as empowering employees and improvement teams.



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DigitAl leADership

Digital leadership is the strategic use as a company’s digital assets to achieve business goals. This can be allocated with both in organization and at an individual level. In an effective digital environment, leaders would be aware of the business goals and comprehend what are their job responsibilities to assist in digital transformation.

The purpose digital leadership is the connected to cheaper, faster, reliable and easy migration, reduce the technological constraints in work & process performance. The prime purpose of digital leadership is how to accomplish the total digitalization with business success & profitable and making business more agile.

fulfil the employee expeCtAtions

Other aspects of digitization are systematically planned & adopted training courses & sessions after identification of technical trainings, intense IT application, online and on-job distance learning for performance and its financial benefit. Application of various layer platform such as SQL Database, My SQL, OPC UA; Edge layer, M/c layer, Cloud etc.

Digitization for employees through establishing comprehensive training infrastructure, Ready-to-use Key components, Smart M/c box, OSI (open system interconnection) compatibility, online operation recoding, easy to approach professional consultants plus services with internal smart manufacturing consulting teams.

ROAD MAP FOR PREPARING PEOPLE PARTICIPATION IN THE DIGITAL TRANSFORMATION

In industries, digital transformation efforts are struggling to keep up system improvement process with the innovation and speed necessary for digital success. Technology innovation is outpacing the ability of the business to address digital value creation, in delivery & capacity. Business is opening & preparing to understand the significance of idealizing the customers at the centre of every working and decisions. Management of any organization could follow the below stated long-term planning for digitalization.







People-centric



force


ation

Social use of

digitization

Core concern

in technolog

ical growth

Disruptions to the

future work of

digitalization

Technological

advancement

through digitalizat

ion

Manage digital

technology

Dep

artm

enta

l Ini

tiativ

es in

H

uman

-Cen

tric

Dig

itiza





Digital leadership






such initiatives




Fig. 5: Road Map for Preparing People Participation in The Digital Transformation

evAluAting opportunities for DigitAl trAnsformAtion

Following bulleted points describes the opportunities of digital transformation;

• Make business efficient and make global through digitization and digitalization



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• Transformation drives for customer & cost centric, technology & process centric, business and people centric approach of management and business

• Introduction of people centric processes through digitalization• Corporate and management facilities through digitalization• Technological evolution and advancement for customer delight (kano techniques)• Customer success and innovations in process and operations • Value added customer support in services like transportation & other public

services• Digital way of functioning of all operations and easy access to customers

• Make the organization performance oriented and provide services of future.Define vAlues envisAgeD through suCh initiAtives

Digitization and digitalization could be envisioned through the following initiatives;• Productivity, quality, capability and overall equipment effectiveness• Making planning with online and effective data management • Cost effectiveness production and services on sustainability• Better controlling, effective monitoring of all operations and resources utilization• Global access of the customers, expansion of business through instant and

effective communication• Enhance corporate values to the customers and employees• Transformation of business management and performance from traditional

towards automations, IIoT, CPS, data management & data driven decisions • Use of HI, AI, VR and additive manufacturing• Develop the smart business & organization through smart manufacturing,

services and customers management.

mAke these initiAtives As people-CentriC

For making the initiative people-centric, management necessarily plan and engage workforce for digitally savvy environment as per the below stated areas;

• Starting with implementation planning on developing the basis and steps• Strategic business planning for identifications the functional areas, cost centers

and processes-wise • Duration and required investment with payback periods as per cost benefit

analysis• Connect digitalization with people performance • Digitalization human literacy and business planning • Digital disruptions to the future work with the perspective of socio-economic

challenges, technological advances, employee management with their expectations.



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the benefits of these initiAtives

All benefits of digitization are people performance and benefit for organization, these are;

• Better undertaking the socio-economic challenges• More volume of business and customer services • Improve in digital literacy for making it a driving force for business success

through resilience • Introduction digitally management for transformation from administrative to

technical management• It is a mechanism of controlled business and starting point next generation

business management & excellence model• Technological advancement with process reengineering • More RoI from investment.

exeCution plAn of suCh initiAtives

Execution is the planned execution of the strategy on digital transformation, which implemented by management through people and process, these are;

• Develop a people engagement planning for domestic industries & country• Follow the industry and business trend • Organization learning model and may be by developing the internal maturity

model • Internally develop the business excellence model through digitalization• Include digitization and digitalization in business strategy • Follow the business evolutions for introducing new industry revolutions • Develop guiding principles of digital transformation• Establish your vision, mission, and values• Get people on-board with your digital transformation plan• Quantify and prioritize those issues• Set KPIs and establish accountability• Allocate time and budget• Take a phased approach• Post-implementation feedback• Celebrate micro goals and achievements• Ride the momentum.

CONCLUSIONCompanies are ai present planning for organizational preparedness for transformation in digitalization effectively with digitally people-first approach, give themselves a



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significant competitive superiority by focusing on the aspects which are essential to success. Effective directional changing at right time is a set of goal with reliability, practical capabilities that harness the energies of the entire organization in continuity. There is upward trend appreciation of the need for organizational change which is absolutely do a better work & workforce management in changing global challenges which esteems the changes as a really of constant necessity.

Every decision on digitalization should be value added on the perspective of customer’s benefit. Business value addition is an added advantage of overall digitalization of the organization, through developing a people engagement planning for domestic industries & country and organizational continuous learning aspirations.

ACKNOWLEDGMENTThe authors are approving with the acknowledgment of the support from industry seniors, research colleague and team-effort provided by the organizations where it is studied and industrial councils. Authors also acknowledge to the National Productivity Centres of Taiwan, Singapore, India and APO, Japan who helped by approving my country participation from India with other Asian countries to develop this study with their valuable criticism to progress towards better outcome and worthiness of this paper.

REFERENCES [1] Carr, E.H.; Haslam, J. From Napoleon to Stalin and Other Essays; Macmillan London: London,

UK, 1980.

[2] Driving Digital Strategy: A Guide to Reimagining Your Business – 28 September 2018 - Publisher: Harvard Business University (28 September 2018).

[3] Duszak, R., Jr. What will the Radiologist’s Job Description Look Like in a Decade? Available online:https://acrbulletin.org/acr-bulletin-june-2016/492-technology-informatics-appropriateness (accessed on 15 March 2019).

[4] Leading Digital: Turning Technology into Business - Publisher: Harvard Business; Edition (12 November 2014)

[5] Kagermann, H.; Lukas, W.-D.; Wahlster, W. Industrie 4.0: Mit dem internet der dinge auf dem weg zur 4. industriellen revolution. VDI Nachr. 2011, 13, 1.


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4

Does Global Trade Affects the Number of Trade Unions in India?

Pooja ShahAhmedabad University, Ahmedabad

ABSTRACT

In 2017 India was contributing 48.8% to GDP through global trade. Every country performs global trade to increase overall growth of the country but by doing so the macro aspects are achieved and micro factors are neglected. Research shows that global business can increase wages, high demand for commodities leading to more employment and better job opportunities. This study aims to determine a correlation between global trade and effects of it on the labor which is associated with the formation of trade unions. To what level can global business I.e. import and export of goods can impact and influence the labor and the trade unions? Keeping in mind the effects of globalization the data for the year 1991-2013 of imports and exports and number of trade unions were taken for this research. The research is based on analyzing the pattern of imports and exports with formation of trade unions.

Other factors like number of strikes, wage rates and unemployment rate were also observed and taken into consideration. The result indicated that in early stage of globalization, global trade majorly impacted on the labor market. It decreased the labor benefits and affected the formation of trade unions. Broadly exports and imports affected the wages of the laborers in India and unemployment rate also increased. Which significantly disturbed the laborers and hence trade unions were formed. Remedial measures like collective bargaining, application of labor laws played vital role in stabilizing the effects. But on this basis, it is visible that trade unions play very important role in forming any countries economic conditions.

Keywords:Trade Unions, Import, Export, Globalization

INTRODUCTIONIn today’s world we see increase in global trade which simply means import and export of goods and services with other countries. Countries perform global trade in order to increase economic growth, GDP, maintain amicable relations with other countries and increase overall growth of the country. In doing so it increases the level of economic growth at macro level but on the other side it neglects the factors affecting at micro level. This paper talks about how global trade can affect the labor which eventually leads to increase/decrease of formations of number of trade unions. The purpose of this paper is to analyze both the factors i.e. global trade and no. of trade unions year wise and note the pattern formed to come up with a result



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that whether they are correlated or not. In this paper I have used Excel and multiple regression method to get the results. The results and discussion to the data is also given in this paper.Formation of trade unions is a very powerful tool to fluctuate the economic conditions of any country. There are certain cases which I observed had major changes due to impact of formation of trade unions. Like the Suzuki case where serious actions happened due to industrial dispute and trade union impacted the policy changes in the firm. The Nike India case also reflects how it impacted the firm and leads to change in company’s growth. Therefore a trade union is a very influential and strong way to change the unfair practices happening in the country.Trade unions as per Trade Union Act 1926 define it as any combination whether temporary or permanent workers formed primarily for the purpose of regulating the relation between workmen and employers. Mainly trade unions are formed in against of practices like unfair treatment, lower wages, bad working conditions, overtime work etc. in this paper I also have presented that due to global trade what affected the Trade Unions i.e. whether it increased or decreased. Overall the results challenge the globalization effects on labor and number of trade union. The results of this paper will contribute to the literature by ‘how global trade affects trade unions’.

LITERATURE REVIEWIn 2017 India was contributing 48.8% to GDP through global trade. When I think of global trade affecting labor the first thought which comes is that it will provide workers to move from low wage job to high wages job. Or as export increases the demand of commodities will increase which will lead to increase in demand of workmen and thus employment will rise. Or import will bring new cheap products in market which will reduce cost from businessman’s perspective. Here are some key facts which cannot be ignored.

i. According to WTO, Globally, millions of jobs depend on international trade. Imports support jobs by improving the competitiveness of firms, while exports allow firms to reach larger markets. The share of export-related jobs in domestic employment can reach up to 30 per cent in some countries. [Error! Reference source not found.]

But is it really practically happening or the numbers are lying, is this research all about. Globalization came in India in 1990s. Keeping in mind the effects of globalization I have taken data for the year 1991-2013 for this research. In many countries effects of global trade was very positive on the labor market, but this was limited to skilled labors. And in Indian economy the ratio of unskilled labor is 50-60% which justifies the significance of this research. Moreover I have also taken the data of unemployment rates to see how it affects overall on economy. As from 1990s the unemployment rates were shifting at very fast pace and due to it there can be a chance that there is a correlation in both the trends. The concept of trade union started in 1875 over issue of low wage rates. It will also reflect in this paper that how lower wages have impacted in the big picture of global trade.



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DATA ANALYSIS

reseArCh methoDology

The data was collected via existing data sources to conduct the primary research and backed up by existing websites and research papers.

Quantitative Methods

This method includes various tests conducted in excel using functions like correlation and regression. By using hypothesis which are further explained in the paper the research shows the result.

Existing Data

The secondary data was taken from renowned website ‘ILOSTAT’ for the base of trade union formation and other relevant websites referred below for backing up the main data.

methoDs

To conduct this research I have taken help from excel and methods like correlation and regression analysis are taken to understand the relation between the independent variables- exports (X1) and import (X2) and dependent variable- number of registered trade unions(Y) during the years 1991-2013. All this data is taken from ILOSTAT and the statistic year book. To further more add to the significance of this research I have also taken unemployment rates, number of strike and lockouts and wage rates in India data to consideration.

vAliDity of DAtA

Running the multiple regression tools in Excel, I came up with this results which is shown as under:

Normal Probability Plot

Fig. 1: Normal Probability Plot of No. of Trade Unions and Global Trade



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On Y axis the range of no of trade unions is present and on X axis the import and exports percentile is present. When we analyze this chart it clearly indicated that there is positive correlation between the independent and dependent variable. To further add the multiple R value is 0.90 which is quite strong to justify the test. This step verified me to move further to conduct the research. To further more justify the data here are some results with analysis done for the same.

RESULTS

exports

H0= increase in exports affects the number of trade union

H1= increase in exports doesn’t affect the number of trade union

Analysis

The value of p is 0.3345 for exports. At 5% significance level, α = 0.05, the p-value is greater than 0.05. This indicates that the null hypothesis H0 cannot be rejected and we conclude that the increase in exports affect the number of trade unions.

The significance F value is 0.0000000863685 which is smaller than 0.05 which means the multiple regression model developed from sample data is statistically valid for entire population.

The multiple correlation coefficient of is 0.8963, which means that there is a very strong correlation among import export and no. of trade unions.

imports

H0= increase in imports affects the number of trade union

H1=increase in imports doesn’t affect the number of trade union

Analysis

The value of p is 0.9274 for imports. At 5% significance level, α = 0.05, the p-value is greater than 0.05. This indicates that the null hypothesis H0 cannot be rejected and we conclude that the increase in imports affect the number of trade unions.

The above data analysis makes sure that the correlation done is valid and therefore I can move to the second step of relation between import and export to no. of trade unions.

effeCts of exports

Looking at the chart below, there is a description of how export influences the no. of trade unions and also answer why it happens so.

Export means sending goods to other countries. As earlier said it might seem that exports will increase the work and that will increase the employment rates as the demand is high. But as visible the chart above in year 1999 there is highest no of trade unions registered. When the hike of export rates is around 3-4% but in year 1999-2000 there is a hike of 8% which is the highest amongst the given data. This



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means the export increased and simultaneously the trade union increased at its highest. Assumable that increase in work (exports) lead to increase in employment but at low wages. But this statement is not enough to prove it therefore statistical evidence is provided below to prove it.

X1 export (in billion $) Line Fit Plot

Fig. 2: Effects of Export on Number of Trade Unions

Fig. 3: Increased Value Added and Household-Wise Increased Income due to Increase in Export

To furthermore prove the data as seen from the above table, only 1.6% of the total income goes to the poor people or the workers working in heavy industries. This results shows that export was increased in all the sectors. But the incomes were only benefited to certain sectors. The incomes of the poor and the poorest of the poor



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have increased, but it is a very small proportion of the total increase in incomes generated by exports. (Source). Which means workers were working but not with satisfaction. It is very clear that people who are not physically working earns a lot more than the one working as a labor. Though the jobs are totally different but only earning 1/4th of it is unfair. Thus by looking at this data I can say that there is a correlation between income level and trade unions formation. I could not find brief data regarding the same, thus not a detail idea but an overview of why trade unions form due to global trade is discussed.

I can say that increase in exports do rise employment but with low cost in these years but when trade unions started forming and were active enough I see that even when the export is increasing the no. of trade unions are decreasing. This is because of the implementation of policies regarding wages and active trade union participation in years 2000s. Further positive effects after year 2000s is talked in below discussion.

One more factor which can contribute to justify the assumed statement is the no. of strikes due to economic activity like global trade is shown below.

Number of strikes and lockout due to economic survey

Fig. 4: No of Strikes and Lockout Due to Economic Activity

Noticeably, the number of strikes in 1991-1999, it decreased at certain points because the workers did not have strong support to put there points. But it increased in 2000s because workers got support from trade unions at national level and acts like employment relation act, equality act etc. came into existence. Therefore more and more awareness spread about it as in early times workers used to think that being a part of trade union might result into losing of job but due to increase in actors like technology people started getting information that it is more beneficial to be a part of it rather than working on the same wage rate. Hence with the help of all this workers in any industry started getting a voice which they could present.



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effeCts of import

Looking at the chart below we will see how import influences the no. of trade unions and also answer why it happens so.

X2 import (in billion $) Line Fit Plot

Fig. 5: Import Affecting No of Trade Unions

As we see that during the year 1991-1999 there in increase in imports and there is increase in the no. of trade unions as well. I can assume that increase in import activities i.e. getting goods from other countries results in decrease in unemployment rate or decrease in wages would have increase no. of trade unions. But by looking only the above graph I cannot conclude that there is a correlation. Therefore to furthermore justify I have taken unemployment rates for the years.

Fig. 6: Unemployment Rate from 1992-2012



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ANALYSIS

1991–1999

As we see in year 1990s the imports are increasing as India was new towards the phase of globalization and was at growth stage as a developing nation. In India globalization effects was mixed. Of course the rich people were benefitted with the impact of globalization but not the poor. The situation was like rich become richer and poor became poorer. Therefore the industrial sector with heavy manpower was affected. On one side the industrialists were happy as there business was growing with import of products and new services but the job of workers was taken lightly. And thus in year 1990s, the unemployment chart the unemployment rates in increasing. For the increase in this ratio it cannot only blame globalization as one of the factor but it can be considered one of the major ones affecting the economy. So as above charts when the imports in 1999 are 50.2 billons the increase in no. of trade unions increased to 64817 one of the highest noted. This is because workers were provided jobs but at very low wages. This was not limited to few sectors but it was present in all the sectors which finally give us this total figure. When we see the wage rates in below chart in 1999 when import increased it had the lowest wage pay in the entire decade when even the productivity was very high. This means people use to work more but paid less.

Fig. 7: Wages of Worker in Organized Manufacturing Sector

So we can finally say that increase in import resulted into unfair wage rates which eventually affected the number of trade unions registrations and the unemployment increased in initial phase i.e. 1991–1999.



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2000-2010

As seen in the figures and charts above there might also be a noticeable fact that after 2000s situations were getting normal, that is registered trade unions were decreasing even when global trade was increasing and the unemployment rate was also decreased tremendously.

X2 import (in billion $) Line Fit Plot

Fig. 8: Import Affecting No of Trade Unions Fig. 9: Unemployment Rate

This was mainly because of formations of strong and active trade unions like The National Centre for Labor (NCL), a lead organization for informal labor established in 1995, and the New Trade Union Initiative (NTUI), a non-party affiliated union established in 2002, also reflect a shift in union strategy to take into consideration the larger issues facing both formal and informal workers in the prevailing economic climate (Hill, 2009). Efforts were made to bring to a common solution by the companies and trade unions. In 2005 MNREGA was established and the second labor commission was established. Overall a lot of efforts were made to bring justice to the workers which apparently made the above results. I can also say that collective bargaining played major role in bringing the wages and justice to the workers. Thus a new shift was seen in India in year 2000s.

Collective bargaining played a very important role in decreasing the number of trade unions. Collective bargaining is a method of settlement of industrial dispute. The benefit of this method is that it is a democratic way to resolve and also represents our nation’s ideology. Of course it has impacted the labor and industries both the parties to resolve the conflicts without any need of violence.

HOW WILL THIS IMPACT?

Increase in number of trade union can highly impact on the business of global trade. Not only the business will stop its image, production and other factors will also get affected. Economic development without workers’ rights and job protection also there opinion in decision-making does not amount to growth in the economy.



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proDuCtion loss

As workers increasing the amount of strikes and as problem is not solved reaching out to trade unions will affect the company’s overall production. As people are on strike and there is less manpower which we lead to bandh and lockouts and no production will occur. This will result into huge losses for the global traders. Not only there profits will be gone but even there image in global market may be at risk.

globAl imAge will reDuCe

As said because of companies name on the front page of discussion, not only at regional or national level it will impact but to global level as the work is related to import and export and as said global trade means to do business with other countries.

Disturb overAll eConomy

With the company’s image the countries name can be also spoiled as this is the matter of global concern and therefore suppose Indian company is having some issue, the word Indian’ will be associated with it as well. This may overall disturb the economy as investors from foreign countries will now think twice before investing in a country that is in the discussion because of its failure in exports and imports due to Xyz Company.

By means of foreign trade it can also transmit the troubles to other countries. For example, the collapse of American markets in 1929 resulted in a world-wide depression. Something like this can also happen because of one country failing in foreign trade.

SUMMARY

• Firstly there is a positive correlation between global trade and formation of trade unions. i.e. when global trade increases there is high possibility of trade union increase.

• Talking about the impact of exports, it was positive but it was limited to certain sectors. The skilled labor was benefited by it as the more the export the more the economy in terms of money grows. The better job opportunities were created and overall it was increasing the overall growth at macro level. But the unskilled labor or labor working in factories found a decline in there wage rates and income. Though they were getting minimum wages according the act but the ratio of it was very low. Their productivity and work was increased but wages remained the same.

• Overall I can say that the global trades especially exports have played major role in developing the nation. It has created jobs and income levels were increased, however it can be said that the workers income was very marginal from the generated exports.

• The impact of imports was significantly apparent in this research. The increase in import reduced the jobs as well as the wages in India. Though corrective



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measures were taken through methods of collective bargaining and application of labor laws in 1990s we see quite impact of global trade on unions.

• There were other measures like settlement and remedial actions which also played a role in decrease in trade unions.

• Overall I can say that global trades focus to imports, impacted in the initial stage of globalization i.e. the 1991-1999 due to lot of policy, law changes. This eventually affected the workers’ wages and jobs.

LIMITATIONS

Measure used to collect the data• The secondary data was collected from various sources across the internet. The

information available from these sources were only limited up to Year 2013. The analysis also covers data till this period.

• The data doesn’t consider any current pandemic situation and purely based on a certainty based global environment. Henceforth this paper doesn’t consider any crisis based situation and so analysis cannot be 100% accurate and will be excluding the uncertain factors.

CONCLUSION

Concluding it, Trade increases welfare because each economy’s consumers thereby gain access to relatively scarce products that are relatively abundant in another economy (Source) but this paper has questioned an unseen side and has aimed to correlate the global trade in India with number of trade unions. The question asked in the beginning of this paper was that does global trade affects the number of trade unions? And coming to the answer through this research, I can say that in early stage of globalization, global trade majorly impacted on the labor market but due to increase in education and awareness workers started asking for their rights which brought a substantive difference in now and then situation. It did increase the number of trade unions and eventually also decreased the number. Formation of trade unions can change the picture of entire country and that it is what traders should take care of.

REFERENCES

DAtA

[1] International Labour Organization. (2020). ILOSTAT database [database]. Available from https://ilostat.ilo.org/data/

[2] Wikipedia contributors. (2019, October 24). Foreign trade of India. Retrieved November 24, 2020, from https://en.wikipedia.org/wiki/Foreign_trade_of_India

[3] Plecher , H. (2019). Unemployment rate in India 2007-2018 | Statista. Retrieved November 24, 2020, from https://www.statista.com/statistics/271330/unemployment-rate-in-india/

[4] wits. (2000). wits. Retrieved 2020, from https://wits.worldbank.org/CountryProfile/en/Country/IND/Year/1998/Summary Text

[5] Government of India, Indian labour year book, Table 4.01 (2003), pp. 87–88.



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others

[1] D Impact of trade on labour market outcomes. (n.d.). Retrieved November 24, 2020, from https://www.wto.org/english/res_e/booksp_e/wtr17-4_e.pdf

[2] Dasgupta, I.K. (2018, March 28). The labor market in India since the 1990s. Retrieved November 24,020, from https://wol.iza.org/articles/the-labor-market-in-india-since-the-1990s/long 2

[3] Ivlevs, A., & Veliziotis, M. (2015, October). ftp.iza [discussion paper-What Do Unions Do in Times of Economic Crisis? Evidence from Central and Eastern Europe]. Retrieved November 24, 2020, from http://ftp.iza.org/dp9466.pdf 4

[4] Unknown (2018). India Wage report. Retrieved on November 24,2020 from https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---sro-new_delhi/documents/publication/wcms_638305.pdf 5

[5] Study, (2019). What is Global Trade? - Definition, Advantages & Barriers. Retrieved November 24, 020, from https://study.com/academy/lesson/what-is-global-trade-definition-advantages-barriers.html -

[6] Srivastava, S.C. (2007). Industrial Relations and Labour Laws. Delhi: Vikas

[7] Seth, Tushar (2015, August 12). 9 Disadvantages of International Trade – Discussed! Retrieved November 29, 2020, from http://www.economicsdiscussion.net/international-trade/9-disadvantages-of-international-trade-discussed/1910


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5

Elements of Employee Relationship Management for Enhancing Organizational

Effectiveness in an Era of Industry 4.0

Pankaj ChavdaVeer Narmad South Gujarat University, Surat, Gujarat

ABSTRACT

Employee Relationship Management (ERM) is strategy, process and system at the workplace to effectively manage the relationships between employees and manager and among employees. In the present era of Industry 4.0 where focus is on digitalization and automation of operations, the effective ERM framework is acting as a catalyst for creating competitive advantage for organization and in turn enhance organization effectiveness. ERM framework in an era of Industry 4.0 encompasses elements such as developing leadership capability towards digitalization and automation, integrating technology with workforce, provide effective employee experience, develop an agile and personalized learning culture, embedding diversity and inclusion at workplace and encourage collaborate, communicate and connect using digital tools and techniques. Industry 4.0 provides opportunities to connect and collaborate faster and aids in taking quick decisions. The purpose of this research is to explore the elements of ERM in an era of Industry 4.0 using review of existing literature in the form of books, research and academic articles, articles published in the magazines and internet, blogs etc. It is clearly evident that employee relationship management elements in an era of Industry 4.0 are making significant contribution in enhancing organizational effectiveness and success.

Keywords:Employee Relationship Management, Industry 4.0, Organization Effectiveness, Digitalisation, Automation, Digital Tools, Collaboration, Communication

INTRODUCTION

Working environment is a significant factor for employees to perform their job effectively and remain innovative and creative. Employee Relationship Management (ERM) creates a strong foundation for enhancing relationship between the employees and the organization (Osama Al-Khozondar, 2015). Organizations are realising that strong Employee Relationship Management practices are supporting the organizations to build effective relationships with the workforce (Chaubey, D.S. et al, 2017). When employees have sound relationship with others at the workplace, it will clearly demonstrate in their performance and productivity as well as reflect in organizational performance. It will be visible through free flow of communication,


Elements of Employee Relationship Management for Enhancing Organizational Effectiveness in an Era of Industry 4.0

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strong collaboration and open cooperation. In an era of Industry 4.0, managing employee relationship is more complex and requires special skills and abilities. Managers and Human Resources professionals need to create a proper framework with a mix of physical and digital tools and techniques for developing and nurturing effective relationship at the workplace and beyond to achieve organizational effectiveness and success. Employee Relationship Management leads to mutual value for employees (advanced satisfaction of individual needs) and employers (advanced attraction, retention, motivation and performance of employees) (Strohmeier, 2013).

OBJECTIVE

The objective of this research is to explore and identify elements of Employee Relationship Management in an era of Industry 4.0 which are critical for achieving organizational effectiveness through review of available literature on the subject.

RESEARCH METHODOLOGY

The present research is conducted using exploratory research method of review of secondary data available in the form of books, periodicals, journals, blogs, internet articles etc.

KEY TERMINOLOGIES

employee relAtionship mAnAgement

Employee Relationship Management (ERM) is a process of developing and managing relationship between employees and employer and between employees and employees. According to Stefan Strohmeier (2013) “Employee Relationship Management is the strategy of building and long term maintaining individualized mutually valuable relationships with selected former, current and potential employees, which is operationalized through collaborative, operational and analytical processes, and realized through collaborative, operational and analytical functionalities of information systems”.

Employee Relationship Management includes Human Relations dynamics at workplace. Human relations in an organization refers to humanisation of relations, i.e. human relations between human beings in an organization. According to V. P. Michael (2006), “Human relations can be defined as the cordial atmosphere in an organization in which people practice the art of living in such a way that they communicate, act, interact and transact in a cordial manner recognizing each other’s needs, views, values and temperaments, so that every interaction or transaction which takes place in an organization would have a concern for each other’s interest and feelings leading to better motivation and morale of people at all levels in the organization.”

ERM is an important process as most of the employees spent most of their active time in the organization. A workplace survey conducted by HP in 2017 found that employees in the organization spend about 56% of their time at the workplace than their own family. Therefore, the organization can get maximum advantage when



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employees create and sustain cordial and sound relations at the workplace. It is also found in the survey that cordial and sound relationship with superiors, subordinates and peers results into increase in productivity and develops a feeling of well-being in the workplace.

Structured and tailor-made strategy integrated with organization processes and information systems mainly for automation of personalised activities and strategic actions and reactions of competitors plays a pivotal role on the success of ERM (Stromeier, 2013). ERM can create sound relationships and commitment for the organization and enhance the employees’ level of job satisfaction (Chaubey, D.S. et al, 2017).

orgAnizAtionAl effeCtiveness Organizational effectiveness is the efficiency of the organization to achieve its goals. According to Basil A. Georgopoulos (1957), “Organization effectiveness is the extent to which an organization as a social system, given certain resources and means, fulfils its objectives without incapacitating its means and resources and without pressing undue strain upon its members”

In relation to HRM, organizational effectiveness refers to the efficiency of HRM strategies, processes practices and procedures to support the organization in achieving the goals of the organization. To achieve organizational effectiveness, HRM need to understand behavioural imperatives, understand and partner with multiple stakeholders, gather, interpret and use data and balance the concerns of stakeholders (Schuler & Jackson, 2015). Employee Relationship Management contributes significantly for achieving organizational effectiveness.

inDustry 4.0

Industry 4.0 refers to the fourth industrial revolution. The First Industrial Revolution evidenced with the mechanization and powered through water and steam. This was followed by a second industrial revolution. The Second Industrial Revolution witnessed mass production and assembly lines with the use of electrical power. The Third Industrial Revolution created a great revolution with electronics, IT systems and automation. Now, in the Fourth Industrial Revolution, which is known as Industry 4.0 is using cyber physical system for automation of operations and data exchange in technology and processes within the manufacturing industry. Internet of Things (IoT), Industrial Internet of Things (IIoT), Cyber-physical Systems (CPS), Artificial Intelligence (AI), Cloud Computing, Robotics etc. are the key tools of Industry 4.0.

According to Dragan et al. (2016), “the term ‘Industry 4.0’ means the smart factory in which smart digital devices are networked, and they communicate with raw materials, semi-finished products, products, machines, tools, robots and men. This industry is characterized by flexibility, efficient use of resources and integration of customers and business partners in the business process”. The concept of Industry 4.0 covers entire spectrum of the value chain from suppliers to customers and also includes all operational and services functions of the organization (Rojko, 2017).



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ELEMENTS OF EMPLOYEE RELATIONSHIP MANAGEMENT (REVIEW OF LITERATURE)

leADership CApAbility

Leadership plays a significant role in developing and sustaining sound employee relationship within the organization. Leader’s major role is to enable employees with clear objectives and directions, provide necessary resources and guidance. Sharing of goals and values by managers with employees and provide them direction and required support for achievement of goals can strongly and positively influence individual performance and organizational results (Osama Al-Khozondar, 2015). The world of work demands speed and flexibility. Technology provides new perspectives and insights to the business. Leaders are required to lead with a purpose and demonstrate an example by using latest tools and technology for creating sound processes, structure and culture. Leaders also required to better equip with the latest tools and technology to provide opportunities to employees and build a sound relationship in the organization. Leaders need to develop an ability to embrace ambiguity and remain aware about associated risks and uncertainties at the workplace (Lyuba, 2019). Leaders are expected to integrate operational, technical and people related skills. The new ways of working with the use of latest technology creates borderless organization and pose challenges in keeping a team together. Culture plays a pivotal role for engagement and alignment of a diverse pool of talent with the organizational requirements.

Leaders also requires developing efficient analytics using combination and business data to generate insights for the organization. The three key actions – (i) understand “why” and “how” new technologies drive and deliver values; (ii) invest in people for resilient workforce; and (iii) collaborate to innovate, will help leaders succeed (Chuter, 2019). In order to contribute in developing and sustaining positive employee relationship, leaders needs to acquire, develop and continuously upgrade their capabilities.

Leaders need to acquire and develop Cognitive Skills for communicating and disseminating information through digital medium, encourage collaboration and openness, create and operationalise digital platforms and evaluate digital environment and challenges; Interpersonal leadership Skills for creating collaborative and participative environment, adopting more open and digital mind-set and understanding how to prepare and enable employees to think and act digitally; Strategic Leadership Skills such as creating an inspiring vision for setting the tone for developing an innovative and learning culture, experimenting, collaborative, participative and networked culture, system evaluation and solution appraisal; and Business Leadership Skills such as management of resources such as people, material and finance (Guzman et al., 2020).

teChnology integrAtion with workforCe

The entire work environment is tremendously changing with the advent of new technology at accelerated speed, networked organization structure and changing employment models (Lyuba, 2019). Technology Integration with the workforce is a



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key determining factor for achieving organizational effectiveness. As the world of work is changing, the workplace also needs to change. The changing nature of work necessitates that workplaces are increasing geared for flexibility, collaboration and connectivity (Nayela, 2020). People and technology have a symbiotic relationship. Therefore, it is imperative to develop an ideal approach to ensure integration of people and machines in an era of Industry 4.0. Alternative employment models are creating further complexity. Such changes in workplace and work environment is creating tremendous pressure on the relationship between management and workforce and among employees. In such an environment, the organization is required to calibrate and develop strategies for reviewing job design and upskilling, reskilling and redeployment of talent affected by technology and automation to make them employable (Lyuba, 2019). Due to automation and digitalization of operations, reskilling and upskilling of existing workforce is posing serious challenges to the organization. Ultimately, the dynamic character of an organization is expressed through its people – not digital artefacts (Campbell, 2016). Technology can pump out analytical data, but it is the powerful minds of the people that will ensure required output to achieve efficiency and effectiveness. Encouraging collaboration and employee enrichment increases individual performance and confidence which will results in intellectual integrity. Further millennial workforces are entering into workplaces, and they prefer more to communicate through electronic medium, and they would like to continue at the workplace which has advanced technologies (Attaran et al. 2019). In a networked factory, with the use of artificial intelligence, robots and workers are working together as a single unit. The sensors embedded on robots give quick response to even minor variation. Such quick response help worker to correct the variation in a real time and this creates high degree of cooperation between robots and workers (Dragan et al. 2016).

enhAnCing employee experienCe

Employee experience is the ultimate level of fulfilment that an employee can feel and derive from their interactions with work and work environment in the organization (Itam & Ghose, 2020). The workplace consists of different generations of workers and variety of work methods. In such a complex work environment, employee experience is a significant measurement metric for evaluation of employee engagement for success of organization (Lyuba, 2019). The employee experience is impacted by digitalization and automation, which forces organizations to manage work with agility and optimal mix of employees, external experts and technology. Josh Bersin et al. (2017) in their research pointed out that in a world of digital solutions, transparency and high demand of talented workers and professionals with dynamically changing skills and competency, employee experience will be the key dimension for active engagement of employees and gaining competitive advantage. HR can enhance employee experience by making investments in digital and technology driven HR tools such as artificial intelligence drive talent management and performance management system, learning through gamification etc. (Itam & Ghose, 2020).

In an era of Industry 4.0, employee experience can be seen from four critical dimensions – (i) connect with colleagues and trust in leadership; (ii) individual growth



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and reward opportunities; (iii) meaningful work that aligns with employees’ values and contributes to higher purpose; and (iv) occurring an environment that supports productivity and performance (Lyuba, 2019). Leaders need to create human centric, holistic and purposeful employee experience for developing a sound framework for employee relationship management. Also, leaders need to introspect on alignment of employee experience and well-being by ensuring balance of operating model and deployment of technology for effective engagement of employees (Lyuba, 2019). When an organization prioritize and focus on employee experience, it results into creation of self-managed teams who values loyalty and exceeds performance expectations (Itam & Ghose, 2020). According to Michel Liley et al. (2017), a new paradigm of talent management addresses professional and personal moments that matter across three dimensions of employee experience, i.e. physical experience (choices related to workplace environment), human experience (choices related to interactions with others) and digital experience (choice related to how employees perform their jobs). Effective employee experience will create a long term and sustainable employee relationship management which will enhance organizational effectiveness.

builDing An Agile AnD personAliseD leArning Culture

Employee Relationship will be significantly influenced by employees to remain updated with the latest knowledge, skills and competence. A new way of learning culture focussing on agility replaces traditional learning & development (L&D) programmes where stakeholders work together on shared learning goals, take lead and contribute thoughtful understanding, and develop milestones from larger plans in the form of “sprints”(Basu Mallick, 2019). In a rapid business environment, to meet business needs, workforce need to learn, unlearn and relearn skills at an accelerated speed. This is critical challenge which organisations are facing today (Lyuba, 2019). Technological changes, longevity, new and next practices and business models have created a need for continuous and life-long learning. Learning is becoming a centre stage for talent management. Organizations have started delivering learning to employees in more personalised manner matching with his/her learning style with integration of work. Also, social and technology advancements are playing key role in shaping person through learning experience (Lyuba, 2019). Experiential learning enables employees to create an insights for refinement in job specific abilities, taking decisions, handle difficulties and concerns, learn from previous mistakes and receive feedback. Highly motivated employees who are keen to develop their skills are resilient to the advancement in technology and keen to develop various skills, including critical thinking, empathy, collaboration, problem solving, communication and presentation. This creates an inquisitiveness and helps in creating a culture of life-long learning. The primary focus would be on creating employability by way of upskilling and reskilling of universal transferable skills and not just job specific technical skills (Lyuba, 2019). It the responsibility of a leaders to inspire a culture of life-long learning focussing more on personalized way. Leaders shall share responsibility for learning, engage and pro-actively manage employees in at-risk jobs, unlock the learning mix that is right for the organization and track and



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measure skills in the organization. Creation of an agile and personalized learning culture will benefit the organizations in the following manner (Basu Mallick, 2019):

• Creating an atmosphere of collaborative learning

• Enabling organization to gain from data

• Aligning personal goals to organizational objectives

• Making learning a non-linear process

• Breaking learning into bite-sized, digestible chunks

embeDDing Diversity AnD inClusion

Achieving excellence with inclusiveness and diversity is most difficult objective for any organization (Itam & Bagali, 2018). Diversity is derived from a mix of demographics, skills and experiences, while inclusion unlocks the potential of diverse workforce (Lyuba, 2019). Diversity is about the differences that people bring on board – visible as well as invisible differences (Agarwal, 2018). Inclusion is defined as fairness and respect, feeling valued and sense of belonging, as well as being empowered and growing. Inclusion is the sense of belongingness that an individual feels at both the organization and the team level and comes a live through the daily lived experience of the employee (Agarwal, 2018). Diversity is leverage through inclusion, which requires employees to feel valued and included by an organization. It calls for simultaneously recognizing differences and overcoming them, by valuing differences in and across the organization (Nair & Vohra, 2015). Diversity in organisation is becoming powerful tool which promotes diverse views to achieve and sustain individual and organizational goals (Itam & Bagali, 2018). Diversity and Inclusion creates significant vibration in working environment of organization and helps in building sound employee relationship. Management approach in providing stable leadership and treating employees fairly and consistently, earns commitment and loyalty from employees and create a sound relationship at workplace (Osama Al-Khozondar, 2015).

Juliet Bourke & Bernadette Dillion from Deloitte have identified Eight Powerful Truths about diversity in Deloitte Review Report (2018) as below:

• Diversity of thinking is the new frontier

• Diversity without inclusion is not enough

• Inclusive leaders cast a long shadow

• Middle managers Matters

• Rewire the system to rewire the behaviour

• Tangible goals makes ambition real

• Match the inside and the outside

• Perform a culture reset, not a tick-the-box programme

Organizations have begun to define measureable objectives, targets and quotas to promote diversity and inclusion. Diversity and Inclusion helps to generate a culture



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of equality at workplace where everyone can thrive. Leaders are expected to align diversity with business growth and embed Diversity and Inclusion into the processes, utilise digital tools for getting data analytics rto measure diversity, assess inclusion and engage with stakeholders and knowledge sources beyond the organization (Lyuba, 2019).

CollAborAte, CommuniCAte AnD ConneCt

Open and transparent communicate communication goes a long way in creating trust and loyalty. It plays significant role in enhancing relationship with employees (Osama Al-Khozondar, 2015). Efforts needs to made to build trust through internal communication develops positive relationship between employees and organisation and mutually benefit to the both. Employees feel more engrossed in their work, build sound understanding with their supervisors and the organization and therefore more motivated to develop relationships with clients also. The success and failure of organization performance depend on people and culture of the organisation and communication, connect and collaboration plays greater role (Lyuba, 2019). Culture of the organization determines how and to what extent employees leverage the digital tools to connect, communicate and collaborate in a digital manner. Online, seamless, integrated and intuitive collaborative tools play a dominant role building strong employee relationship.

Collaborative organization structures, processes and mechanisms are required to realize effective materialization of digital and automation initiative as a part of Industry 4.0. This is confirmed through an analysis of the Industry 4.0 requirements along its six dimensions – vertical integration, horizontal integration, through-engineering, acceleration of manufacturing, digitalization and new business models (Camarinha-Matos, 2017). Effective environment where employees can collaborate to take decisions, clearly communicate expectations and needs and leaders and managers connect with employees through physical digital medium will create warm employee relationship which will ensure long term success for organization. Leaders should always show and make known to employees that they value employees (Sarangi & Nayak, 2016).

legAl frAmework

The legal framework of the country significantly influences employee relationships. In India, the government has taken the initiative with a view to craft the labour law modern, flexible, promote employment opportunities, attract many investors and to create numerous manufacturing hubs (Peter J.A. et al., 2016). In the labour codes, the definition of employee covers supervisory and managerial personnel and definition of worker, supervisor upto certain wage limit is covered. Also, legalization of Fixed Term Employment will create a different set of employee relationship dimension. Such provisions will protect the interests of employees and worker and may become a new element which will influence Employee Relationship Management. The provisions of Industrial Relations Code, 2020 - recognition of unions, formation of negotiation council in case of multiplicity of union, changes in the criteria of registration trade union, creation of grievance redressal committees, special provisions for organization



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employing upto 300 workers etc. will create long-lasting and sustainable impact on employee relationship framework in India.

DISCUSSION AND CONCLUSION

Based on empirical evidences presented in this article, it gives an indication that Employee Relationship Management using tools of industry 4.0 influences strategy, people and process and effective deployment of digital and automation tools promotes good employee relationships for organization effectiveness. By an investment in developing leadership capabilities to with respect to awareness of Industry 4.0, the organization can devise and execute strategies for digitalization and automation of operations and leverage technologies to enhance operational efficiencies. The task of integration of technology with workforce is very crucial for gaining competitive advantage. Business Heads, Line Managers and HR professionals are required to work together for integration of technology in organizational processes and plan for reskilling and redeployment of people affected by automation and digitalization. Diversity and inclusion is a key to get diverse views and suggestions for improvement of operations and can act as an enabler for smooth implementation of digital and automation strategies. Employee experiences, agile learning culture and tools for collaborate, communicate and connect will act as game changer for speedy absorption of technological change in the organization. Positive employee experience by way of using smart tools of collaboration, connect and communication reflects in high motivation and morale and will result in improvement of individual and organizational productivity. Organization strategy towards developing agile learning culture in a personalized manner will help in developing a culture of life-long learning for keeping employees updated with the latest knowledge and skills. Post implementation of Indian Labour Codes will create significant impact on employee relationship as it will bring flexibility for employers and at the same time safeguards interests of employees and workers even though employed for a shorter period.

LIMITATIONS AND FUTURE SCOPE OF STUDYPresent research is conducted based on limited available literature on the subject. While the author has tried to collect relevant literature available in the form of books, research articles, magazine articles and articles on the internet, as the subject is recent and new, it might have missed some literature on the subject which may change some perspective. This research is primarily done based on literature review and there is larger scope to conduct primary research on the organizations where these concepts are implemented and test its significance on organizational effectiveness.

ACKNOWLEDGMENT TO RESEARCH GUIDE AND ARTICLE AUTHORS At the outset the author is sincerely thankful to the research guide for necessary guidance. The author also express sincere gratitude to all the authors list of which is mentioned in references for their enlightened knowledge summarized in the form of articles, blogs, reports etc, based on which this research was conducted.



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REFERENCES[1] Attaran, Mohsen et al. (2019). The Need for Digital Workplace: Increasing Workforce Productivity

in the Information Age. International Journal of Enterprise Information Systems. Vol. 15. Issue 1. Jan-Mar 2019. ISSN: 1548-1115.

[2] Basu Mallick, Chiradeep (2019). 5 Benefits of Creating an agile Learning Culture. HR Technologist, retrieved from https://www.hrtechnologist.com/articles/learning-development/agile-learning-culture-benefits/

[3] Bersin, Josh et al. (2017). The Employee Experience Culture, Engagement and Beyond. Deloitte Global Human Capital Trend Report. Pg. 51-62. Retrieved from https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2017/improving-the-employee-experience-culture-engagement.html.

[4] Bourke, Juliet & Dillon, Bernadette (2018). Deloitte Review. Issue 22. Jan-2018. Retrieved from https://www2.deloitte.com/content/dam/insights/us/articles/4209_Diversity-and-inclusion-revolution/DI_Diversity-and-inclusion-revolution.pdf

[5] Camarinha-Matos, Luis M. et al. (2017). Collaborative Networks as a Core Enabler of Industry 4.0. Advances in Information and Communication Technology. Vol. 56, pg. 3-17. DOI: 10.1007/978-3-319-65151-1_1.

[6] Campbell, Jessica Lynn (2016). Workforce 2.0 : Technology, Integration and People. Workflow (business process management revolutionised). retrieved from https://workflowotg.com/workforce-2-0-technology-integration-and-people/

[7] Chaubey, D.S. et al. (2017). Analysis of Employee Relationship Management and its impact on Job Satisfaction. International Refereed Research Journal. Vol. VIII. Issue–2(10). April 2017, ISSN: 2231-4172.

[8] Chauter, David (2019). Towards an Industry 4.0 future – leadership for Innovation, Manufacturers’ Monthly. November 2019. pg 8-9.

[9] Das, Girish Prasad et al. (2020). Employee Relationship Management (ERM) and its significance – A systematic Review. Pacific Business Review International. ISSN:0974-438X.

[10] Dutta, Shreya (2020). The Role of HR in Employee Relationship Management (HRM). retrieved from https://blog.vantagecircle.com/employee-relationship-management/#:~:text=Employee%20Relationship%20Management%20or%20ERM,allows%20them%20to%20be%20creative.

[11] Georgopoulos, Basil S. (1957). The Study of Organizational Effectiveness. Paper presented at Annual Conference of the American Association for Public Opinion Research, Washington D.C. on May 11, 1957.

[12] Guzman et al. (2020). Characteristics and Skills of Leadership in the context of Industry 4.0. (17th Global Conference on Sustainable Manufacturing). Proceed Manufacturing. Vol. 43. 2020. pg 543-550. (Available online at www.sciencedirect.com).

[13] Itam, Urmila & Gosh, Nitu (2020). Employee Experience Management: A New Paradigm Shift in HR Thinking. International Journal of Human Capital and Information Technology Professionals. Vol. 11. Issue 2. Apr-Jun 2020 ISSN: 1947-3478

[14] Itam, Urmila & M.M., Bagali (2019). Diversity & Inclusion Management: A Focus on Employee Engagement. DOI: 10.4018/978-1-5225-4993-8.ch009.

[15] Liley, Micheal et al. (2017). Employee Experience Reimagined, Accenture Strategy Report. Retrieved from https://www.accenture.com/_acnmedia/PDF-64/Accenture_Strategy_Employee_Experience_Reimagined_POV.pdf.

[16] Mishra, Karen, Boynton, Lois & Mishra, Aneil (2014). Driving Employee Engagement: The Expanded Role of Internal Communications. International Journal of Business Communication. Vol. 51 (2), pp 183-202, DOI: 10.1177/2329488414525399.



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[17] Mulla, Nayela (2020). Empowering HR by Integrating Technology. BW People.in, retrieved from http://bwpeople.businessworld.in/article/Empowering-HR-By-Integrating-Technology-/ 14-06-2020-287169/

[18] Nair, Nisha & Vohra, Niharika (2015). Diversity and Inclusion at the Workplace: A Review of Research and Perspective. (Research & Publications). Indian Institute of Management, Ahmedabad.

[19] Osama Al-Khozondar, Nisren (2015). Employee Relationship Management and its Effect on Employees Performance at Telecommunication and Banking Sectors. retrieved from http://thesis.mandumah.com/Record/209797/Details

[20] Peter, John A., Savarimuthu, A., et al. (2016). An assessment of Labour Reformation proposed in Indian Labour Code 2015 with special reference to Industrial Relations Bill. Indian Journal of Applied Research. Vol. 6, Issue 4, Special Issue April-2016. (ISSN:2249-555X).

[21] Rojko, Andreja (2017). Industry 4.0 Concept: Background and Overview. International Journal of Interactive Mobile Technologies (iJIM). June 2017 eISSN: 1865-7923 (http://www.i-jim.org)

[22] Sarangi, Pratima & Nayak Bhagirathi (2016). Employee Engagement and its impact on Organizational Success – A study in manufacturing company, India. IOSR Journal of Business and Management (IOSR-JBM), Vol. 18, Issue 4 (Ver. I)), April 2016, pp 52-57 (ISSN:2319-7668)

[23] Schuler, Randall. & Jackson, Susan E. (2014). Human resource management and organization effectiveness: yesterday and today. Journal of Organizational Effectiveness People and Performance. March 2014 ISSN: 2051-6614.

[24] Spagnoletto, Lyuba et al. (2019). HR4.0: Shaping People Strategies in the Forth Industrial Revolution. White Paper. World Economic Forum. Retrieved from https://www.weforum.org/reports/hr4-0-shaping-people-strategies-in-the-fourth-industrial-revolution.

[25] Strohmeier, Stefan (2013). Employee Relationship Management – Realizing Competitive Advantage through Information Technology. Human Resource Management Review 23 (2013) pp 93-104. ISSN:1053-4822 (Source: ELSVIER).

[26] Vuksanovic, Dragan et al. (2016). Industry 4.0: The Future Concepts and New Visions of Factory of the Future Development, Conference Paper presented at International Scientific Conference and e-Business related Research, Jan-2016.


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6

Reward and Recognition and its Effects on Employee Relationship Management

Anjali Agarwal1 and Parikshit Kala2

1,2Himgiri Zee University, Dehradun

ABSTRACT

The present span of time is characterised by intense competition in the business world. Organization across the world are attempting to wrestle with the changing business environment, and because of the arrival of multinational companies in India competition has increased for Indian companies as multinational companies have big brand name and market value which allows employee to work in a multicultural environment gives cross cultural learning experience. Now people tend to work with multinational companies for longer run as they get a lot of benefits in terms of monetary and non-monetary allowances which strengthen the relationship between employee and employer. The growing reality of globalisation has contributed too many new challenges for Indian organizations, which placed more pressure on Indian firms to put more emphasis on workforce relationship to drive for long-term sustainability. As a result, the employees relationship management has emerged as one of the important tools for motivating employees and enhancing their satisfaction. The objective of this article is to study the effect of key motivational factors like reward and recognition on employer employee relationship which further influence the overall growth of organization. Although work life balance, working environment, shared goals and values, learning and career development, leadership style also affects relationship among workforces. The study result depicts that though there is strong connection between all five motivational factors and employee’s engagement but reward and recognition is most influencing factor which contributes to build harmonious association among employees and employer.

Keywords:Multicultural Environment, Sustainability, Harmonious Association, Multinational Company

INTRODUCTION AND REVIEW OF LITERATURE

Employee relationship management means to manage the relationship among several employees in an organization. The relationship can exist between employee and the employer as well as among employees. ERM platform’s objective is to check the interests of both parties, employee and employer. It also updates daily work operations under an organized workflow. It is a vital part of Human Resource Management. Employee relationship management is the process of building and monitoring approaches and practices to build harmonious relations among workforce in the organisation. One of the foremost objectives connected with



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employee relationship management emphasize on establishing and retaining fruitful associations of employees within a company.

Although effective organizational communication, work life balance, working environment, shared goals and values, learning and career development, leadership style are big components of ERM, this article will focus on two key motivators – reward and recognition and will examine some attractive figures about the effect of reward and recognition on workforce performance and tells some strategies to utilize this powerful system which leads to the employee confidence, trust, loyalty and harmonious relationship in the organization. If an organisation is effectively managing relationships among workforce, it can govern whether a its goals are being achieved. One the key motivation factors “Reward and Recognition” work as major stimuluses for employees to perform better on job as well as maintain pleasant relations in workplace.

The concept of reward and recognition days back to first Olympic game in ancient Greece when various rewards and recognitions were given to winners (Prizes, statues, inscriptions, respect in society). An Olympic victor was crowned with an olive laurel. Olympic champion became protagonists among people and they earned countless honour for their family and native place. In their native cities people often feed them for the rest of their lives. Olympic medals are considered to be one of the great recognitions in sports fraternity. Human nature revolves around the need for appreciation that helps them strives towards their goals.

Many rewards and recognition stem from our military history also where soldiers are awarded for their bravery. Decorations are awarded for extraordinary bravery and courage, as well as distinguished service during times of war and peace. These rewards and recognition are associated with great esteem and respect in society.

In modern day workplace also with the rise of immense competition and globalization, delivering instant rewards and recognition has now became an integral part of organization across the world. Employees now seek meaning for appreciation and a longing sense of gratification. It’s now high time for employer to rethink workplace recognition with a platform that engaging, innovative and easy to handle, which recognise employees instantly to make rewarding more meaningful. Rewards and recognitions are Psychologically confirmed techniques to motivate employees towards their work and it also supports development among different workforces. It is the prime element for the structure of an involved workforce within the organisation.

Employees who feel recognised and appreciated are more engaged, leading them to be more productive, happier and show higher rate of job satisfaction. Companies that effectively appreciate their employees being 20% more profitable than those who don’t. as compare to the employee who don’t feel recognised or appreciated are less loyal to their employers than their appreciated team members.

Stress free employees are happier and display higher rates of job satisfaction. Working employees engaged always perform better at work and are less susceptible to stress, which is a significant cause of poor mental as well as physical health. In



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addition to strong workplace culture also plays an important role in motivation of the employees as the different culture background from which they come gives them a way to conduct their work properly. This is one of the effective ways to take maximum productivity from the employees in the organisation, which leads to business success.

OBJECTIVE OF THE STUDYThe major objectives of the study are as follows:

• To identify the effect of rewards and recognition on employee’s job performance and employee’s engagement

• Identify the need to improve employee’s relationship and engagement at job.• To identify- are the companies rewarding the employees in accurate way or just

following the practices thoughtlessly? Recognition and rewarding methods are adopted by the organisation as per employee’s expectations or not?

• To analyse is rewarding employees through other avenues more effective solution, than providing monetary benefits.

RESEARCH METHODOLOGYWe propose that intention to adopt reward and recognition techniques coupled with the instant recognition and personalisation in reward system, according to the need of employees, influence the job performance and productivity of employees on job as well as promote the harmonious relationship among workforce. In this research paper, reward and recognition strategies play a mediating role among the two construct variables i.e. employee’s relationship management in the organisation and job performance of personnel. The research is based on descriptive research design and data was collected through the books, magazines, journals, research papers, articles, dissertations etc. books, magazine, journals, research paper etc books, magazine, journals, research paper etc

OBSERVATIONSThe concept of rewarding someone for a job well done is not a new one. Reward and recognition practices were introduced in terms of appreciating something that exceeded expectations. With Industrial Revolution, the approach of employee rewards and recognition programs at workplace became more official. We explore the background of reward and recognition below: when organisation started recognising their staff in the workplace? How companies recognise their workers earlier? How this concept became significant from ancient Greece to the modern workspace.

freDeriCk w. tAylor’s stuDieD “With the Industrial Revolution a new approach emerged to manage the workers for better productivity and job performance in 1909”. This approach is given by Frederick W. Taylor, known as father of scientific management. He observed that the owners and managers of the factories knew little about what actually took place in the workshops. Taylor believed that the system could be improved, and he looked



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around for an incentive. Reward must come soon after the work has been done, then it will be more effective way to stimulate men to do their work. As per him an average workman must be able to measure what he has accomplished and clearly see his award at the end of the day. He settled on money. He believed a worker should get “a fair day’s pay for a fair day’s work”—no more, no less. Taylor believed that workers were mostly motivated and productive by monetary benefits. It meant the productivity of workers increased who were paid more. It was the initial stage of employee recognition and rewards to maintain relations among employees and improve their job performance.

20th Century

After that in 20th century, B.F. Skinner has given the theory of positive reinforcement stated that a behaviour that is followed by pleasant or desirable consequences is likely to be repeated, while behaviour that is followed by undesirable consequences is less likely to be repeated. To encourage positive reinforcement, a desirable stimulus is introduced to encourage certain behaviour. So, employers started rewarding and recognise employees, who do hard work in organisation, and as a result pay incentive plans became popular during this time period. Bonuses have served for a number of years as an incentive program to reinforce positive, efficient behaviour among employees.Furthermore, recognition awards were also heavily influenced by employee tenure. From jewellery to trophies, employees were rewarded but personalisation was not a trend during that time, employees didn’t have freedom to choose an award that is relevant to their personal lives. And most of it was based off tenure with the company. Rewards also given in the form of promotions.

moDernizeD reCognition progrAms

Today’s successful rewards and recognition programs include the following aspects: personalization, timeliness, socialization, peer-to-peer, unique to company culture, etc. Furthermore, employers should reward employees with items that they actually want, and organisations make sure that employees also recognize great work being accomplished by other co-workers.In an effective rewards system, personal thank you, or internal announcement on company’s intranet helps employees to feel valued. Ultimately, this will improve employee engagement and job performance.In an organization, management use thanks along with company name, to recognise when one of its team does a great job. Using the company feed, Thanks can be submitted on either mobile or desktop and makes it super easy for management to appreciate one another. Not only does it make the appreciated person feel more confident, it’s an excellent way for other employees to see how people outside their teams contribute to the success of the business.Company-visible expressions of recognition makes it easier for employees to communicate with one another, it breaks the ice that can sometimes build up between teams that don’t often collaborate with one another and improve employee’s relationship management system.



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reCognition through benefits other thAn sAlAry

In today’s scenario, salary is not an only substitute for appreciation and recognition in work. Employees can be motivated through other benefits also (flex time, time off, free or discounted parking, gym membership discounts, retirement aids, mentoring programs, tuition assistance and child care, medical or other insurance etc). These all benefits are planned as per the specific needs of employees. Recognition through these benefits drive motivation to work and high performance. In many countries, different minimum benefits such as paid time off, employers pension contribution and sick pay are provided. In the U.S., organizations provide health plan to which employers contribute and that sometimes includes vision and dental coverage, along with basic health coverage. With strong recognition employees become more engaged with their organization. Rewards and recognitions promote physical and mental well-being of employees.

prACtiCes of rewArD AnD reCognition in inDiA

In India, because of the growing population of nation and limitation of opportunities, employees have countless responsibilities of their family members and their willingness to maintain a social status among community too, monetary benefits as well as recognition among the colleagues of office premises play an essential role in job satisfaction of employees which further improve the relationships of employees in the organisation.As per research in India, employees out of who are strongly recognized employees, 81% of the employees felt associated with their organisation. This percentage came down to just 21% among employees who were not recognised well in their organisation.According to research, Indian organisation who recognises employee’s performance strongly, generally have a tendency to be more innovative. In this sort of work culture, employees generate1.5x as many ideas per month in comparison of those employees who are not valued well by their companies.Recognition builds and strengthens work relationships among workforce. This Towers Watson research depicts that recognition also increases manager’s faith, communication, accountability and goal-setting qualities.This research declares about the most favoured methods of recognition in India are:

• One of the most preferred forms of recognition in India is a letter or certificate of achievement that can be reserved and showed to other employees and management to value them, which is personalized with the explanation of accomplishment

• 71% employees believed that addition of their organization’s logo on their award is meaningful to them

• Apart from that, employees ranked highly Travel allowances and electronics goods.

Work recognition improve relationships among employees and Organization. According to this study 83% of employees, those who receive strong recognition



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from their reporting authority, they share a strong relationship with their direct managers.

Reward and recognition also help management to attract and retain top talented employees. Study shows that employees who receive excellent reward and recognitions are consistent high performers in their organizations and it promotes harmonious relationship among them.

HOW TO IMPROVE REWARD AND RECOGNITION PRACTICESThe recognition practices should be framed in way to create ample chances for the employees to feel pride in their relationship to the organization. Public announcements among the other employees and congratulatory statements are specifically significant as they help the employee who received the rewards and recognition for their astonishing work done, to get noticed by the higher authority.Following are the five different ways that employees of any organization want to receive reward and recognition at workplace:

lift ColleAgue to ColleAgue reCognition

Every person needs to be respected and treated well by public in his/her surroundings. In workplace, employees devote a huge amount of time with their colleagues. Employees spend their whole day working with colleagues, as a result they share stronger bonds with their them as compared to management. Employees feel that sometimes appreciation from managers can be forced and not honest. In contrary, when they recognised by their peers it is considered more meaningful and make them feel more valued. Organisation should enable a work culture where frequent peer recognition becomes a part of reward and recognition program in the organisation. Furthermore, when the organization encourages a culture of appreciation and gratitude, internal communication system improves and it will promote the harmonious relationship among the employees.

reCognition through soCiAl meDiA

Employees really feel valued if they rewarded and recognised on social networking websites of organisation that has large numbers of followers.For the present generations, it’s important that if someone is rewarded and recognised by the Organisation it should be posted on social media. As appreciation comes from the social media gives employees the sense of being actually in public attention. When an employee gets the tag of “employee of the week” or similar accomplishment will instantly become more significant when organisations post a picture of rewarded employees on the organisation’s social media portal. Companies can reward and recognise the entire team or department for their great achievement in social media. It encourages team work among employees than working as an individual all the time. It will further improve employee’s relationship in the organisation.With the help of internal cloud-based reward and recognition program, employees can recognise each other, exchange good wishes on birthdays and work anniversaries, can complement each other. Managers/team leaders can also circulate an appreciation mail, letter of excellence to staff about the great achievements of employees. A wall



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of fame for the recognition of employees who are weekly/ monthly award winners can definitely make them feel valuable for the organisation.

instAnt reCognition on time

There has been a reflective modification in our workplace in the previous few decades. In organisation managers dominate the workforce, they want to get the work done effectively and promptly within the certain time limit decided by the management. In response of that they should also instantly reward and recognise their subordinates. Delayed recognition is equivalent to denied recognition for today’s multigenerational workforce. Its essential to frame a good encouragement program for each and every organisation. In performance appraisal system also, feedback should be given honesty and on time, so that employees can understand the fairness and value of system. Instant, regular reward and recognition tactics should be made a vital part of the organisation culture to make the employees motivated toward their work. Employees are more likely to take up the new challenges and assignments when they believe that they will be applauded and their efforts will be noticed definitely of the senior authority. Management should help them in their career development by providing guidance and support. As a result, employees become associated with the long-term objectives of organisation. It will rise win-win situation for both parties.

proviDe time off

Now a days because of highly competitive environment, maintaining balance between the work and family became a major challenge for people working in an organisation. Office agendas are getting harder and private time is getting shorter. To achieve healthy work-life balance, flexible timing and few time-off, so that they can spend quality time with their family and friends, is the top-seeking reward for employees everywhere. Providing extra paid days off works as a bonus that helps organisation in retaining the talent and promoting the fruitful relationships among workforce.Providing an extra time-off not only shows companies appreciation but it is something employees really need after hectic work schedule. When employees don’t take time off to rest, it affects their health because of the pressure and stress of deadlines to complete the work. These often creates to high absenteeism, low productivity and low motivation. If employees had to work hard to hit a tight deadline, they’ll really be happy for a bonus day of vacation for personal time.To make recognition truly expressive, organisations must discontinue traditional practices and accept modern techniques. When an employee performs a job extraordinary well, companies can provide them-

• A day or two days off or a short paid-holiday,• Another option for providing time off is: “half-day Fridays off” if employees

meet certain performance goals, they can start their weekend early.• In addition, allotting employees extra time off right before a paid holiday so they

can enjoy an extended holiday with their family and can get few more hours of relaxation.



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It will help in boosting their motivation and at the same time it shows a kind image of the organisation. Which will further improve the relationship of employees with employer. It is also great from the company’s perspective.

personAlizAtion in rewArDs AnD reCognition

For an employee to feel truly valued and more motivated, a personalised recognition will have the greatest impact and promote the most positive results. Rewarding employees do not have a one-size-fits-all solution. Every employee is different and loves a personalized approach. Management should choose a program that offers flexibility in providing different rewards to different team members according to their preferences. It not only shows that managers know and understand their staff, it enables organisation to give a truly appreciated and therefore worthwhile reward, maximising impact.

how personAliseD rewArD AnD reCognition progrAm CAn be DesigneD

Firstly, in today’s scenario because of technology advancement, personal life of employees is becoming increasingly transparent and social media inevitably brings personal lives into the workplace. Due to social media, it is possible now to know more about an individual’s social life, personal preferences, likes and dislikes. It makes easier for managers to learn and acknowledge an employee’s personality and accordingly management can reward and recognise employees as per their preferences and likes. Personalisation in appreciation intensely improves the chance of working specifically to individual preferences. This will ultimately build sense of belongingness and promote harmonious relationship among employer and employees.

Secondly, organisation can conduct employees’ surveys through emails. A quick survey before designing the reward and recognition schemes can help managers to learn a lot about employee’s preferences. Companies can offer employees loads of reward choices to pick from the different option available.

Furthermore, the next solution that can be used to reward and recognise employees is Point-based rewarding system.

In a point-based rewarding system, each employee is considered a part of employee rewards program and the management can allot points to their employees as gifts or rewards. Later on, employees can cash these points received by them and they can use it to purchase goods/services as per their choice from different categories available – electronics, merchandise, travel benefits, lifestyle, accessories etc.

Now a days a personalised card (sent or emailed to employees with a personalised message) are given to employees to recognise their work. Through this way, they can reserve the money to spend on something extra special, rather than it just being combined into a monthly pay package and then used to pay every-day bills as a result it’s easily forgotten.

Organisations can form such an appreciation packages for the employees which will demonstrate positive qualities at the workplace. By formulating this flexible



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personalized recognition platform, organisations help employees to choose from thousands of gift card options for popular, local stores, restaurants, entertainment or travel outlets, and even charitable houses.

Nelson suggests that, in order for organizations to ensure that employee recognition activities are effective, genuine and meaningful, they should consider the following: recognition should be fair, transparent, inclusive, frequent, timely and varied; the form of recognition used should be appropriate to the contribution that was made; recognition should be meaningful and reflect the preferences of the recipients.

CONCLUSIONCompanies now are finally acknowledging the importance of rewards and recognition in the workplace. Reward and Recognition programs will continue to advance with the skilled and efficient workforce, so it’s essential for the organization to customise its reward and recognition program as per expectation of current employees. If a company is suffering from poor employee engagement rates, it’s time to adopt an effective reward and recognition system. In India it is necessary to reward and recognise employees through monetary benefits as well as other avenues (non-monetary aids). But they should design it in right way not just follow the trend blindly. Companies should personalise rewards and recognition strategies to appreciate employees because each and every individual is different and they have diverse preferences. Being recognized for doing a good job makes individuals feel better about themselves and the organization they work for ensuring more loyalty. This research is done to identify the effect of reward and recognition on employee relationship and suggests ways through which organization can improve on current practices. Engagement and recognition eventually mutually reinforce each other.Rewards and recognition is a wide concept and is increasingly being redefined to include not just traditional ways of thanking and compensating employees, but also newer areas like physical, and emotional well-being of employees. The purpose of rewarding and recognising, as we all understand, is to tell employees that their contributions are valuable to the organisation. It matters to employees because they feel validated, important and respected. And ultimately happy and motivated employees promote harmonious relationship in workplace which further increase their engagement and job performance. When employees are engaged in their work and take greater pride in it, companies’ business is likely to be more profitable. In fact, research shows that higher employee engagement levels can increase profitability by 22%.Almost 90% of business leaders face a lack of employee engagement as one of the top three threats facing their organisation. But when employees feel good about their employers (have pleasant relationship among employer and employees) and observe the difference that their efforts are making every day, this major issue becomes far less of a problem.

There is no doubt in saying that reward and recognition programs motivate employees. But as well as enhance their moral to hit personal targets and achieve their own



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professional goals, they can also be used to bring teams and departments closer together and proves as an essential tool of employee relationship management.

REFERENCES[1] Roy Saunderson, August 10, 2017. A short history of the origin of recognition.

[2] Naz Beheshti, Forbes, June 16, 2019, article 10 Timely Statistics About the Connection Between Employee Engagement and Wellness.

[3] Prachi Juneja, MSG management study guide, employee relationship management.

[4] Dhani Shankar Chaubey, Ms. Navita Mishra, Rajat Praveen Dimri, April 2017, Analysis of employee relationship management and its impact on job satisfaction.

[5] Ravi Kumar Chitnis, Anjali Sane, October 2019, paper/ trends in business environment in India.

[6] Nandini Rathi, April 20, 2016, how recognition matters in India & how to make it effective.

[7] Ahmad Puad Mat Som, November-December 2012, Motivational Factors of Employee Retention and Engagement in Organizations Benjamin Balbuena Aguenza1, 1School of Health Science, Management and Pedagogy, Southwestern University, Philippines. 2School of Housing, Building and Planning, Universiti Sains Malaysia, Malaysia.

[8] Darshana Dutta, November 3, 2020, Article-Art of giving recognition at work.

[9] Kevin Chamberlain, do personalised rewards make better rewards?

[10] Teamriver.com, January 30, 2020, blog 6 benefits of employee recognition programs.


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7

Performance of BSE Group Stocks in India

Aaditya Chandra Tiwary1, Prabhjot Kaur2, Ankit Mittal3 and Aryansh Sinha4

1,2,3,4Institute of Management, Nirma University, Ahmedabad

ABSTRACT

The purpose of the research was to understand the performance of various stock groups of Bombay Stock Exchange (BSE) in the Indian share market. In the research, the data of around 250 different companies belonging to four different BSE groups have been taken. Calculations were done for their returns, Yearly standard deviation, Jensen Alpha Ratio and Sharpe ratio. The research focuses on the group stocks of A, B, Z and T. The research is based on the findings of ANOVA test, wherein 100 observations are taken and divided in each group to find the significant relation between the return of the group stocks of BSE. Further the study was conclusive and the significant relationship between the different groups stocks was drawn. The research findings clearly indicate that returns of the different group stocks of BSE varies with groups.

INTRODUCTION

Bombay stock exchange also known as BSE was established in the year 1875 at Dalal Street. It is an Indian stock exchange and one of the oldest stock exchange in Asia. In the world it is the 10th largest stock exchange. It has market capitalization of more than US$2.2 Trillion. It has a very efficient and transparent market for trading in currencies, equity, derivatives, mutual funds and debt instruments. It has listing of over 6000 companies across the world.

The stock groups of BSE are categorized into 6 groups. They are A, B, T, S, TS, and Z. These groups are classified on the basis of size, liquidity and exchange compliance.

T Group

Under this group the stocks which fall under trade-to-trade settlement are considered. The share price under this group is marketed on the day of the purchase. Some of the features are

• Deals which take place under this group are known as Individual trade settlement.

• The stocks under this group are versatile.



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S Group

This group falls under BSE IndoNext segment which comprises of small and medium size stocks are dealt with. The companies under this group are usually listed in the regional stock exchange. These stocks are of low liquidity.

TS Group

This group consists of mixture of stock from T group and S group. It has the features of both the groups.

• It has BSE IndoNext segment.

• The stocks in this category are settled on trade-to-trade basis.

Z Group

This group is considered to be among the riskiest group to invest in. It consists of stock of companies which have a dematerialization agreement with CDSL or NDSL.

Some of the features are

• It is risky to invest in companies under this zone as there is no information about the company available on the public domains.

• As these companies do not get much of media coverage, they save themselves from public scrutiny.

B Group

This group consists of those stocks which do not fall under any other category.

A Group

This group consists of the most liquid stocks listed in the BSE. They have high trade volume. These are very popular stocks.

slb group

This group was introduced in the year 2007 by SEBI. It is a platform for borrowing of the securities. Currently there are 207 companies listed under this group.

Groups Based on Classification of the Capitalization of the Market

• The companies with more than 1000 crore rupees of the capitalization value of the market are known as large-cap companies, which has large-cap stocks.

• The second in mid-cap stocks of companies with capitalization value of the market between 200-1000 crores.

• The last group is small-cap stocks of companies with capitalization value of the market between 30-200crores.

OBJECTIVETo study the Average returns of the different group stocks of the Bombay Stock Exchange (BSE).



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LITERATURE REVIEWBalan and Srinivasan (2017) in their study took 69 companies of BSE group A from 7 different industries to find the determinants of share price of the stock. The stocks selected have a higher weight on index. The value of the share is determined by demand and supply of that stock in the market. But the demand of that stock is based on various other factors. The factors influencing Market Price (P) that are considered in this study are Dividend per share (DPS), Earning per share (EPS), Dividend Payout Ratio, Book value, Price Earnings Ratio, Net Worth, Net Profit, Dividend Yield and Return on Net Worth (RONW). Multiple Regression Analysis was conducted to find the dependence of Response variable (market price) on Explanatory variables (factors affecting Market price). F statistics of 61.484 and p-value less than 0.05 showed that explanatory variables are significantly associated with dependent variable. Here, DPS, Sales and RONW are major determinants of share price as their coefficients were high and positive in Regression equation. In conclusion, the study supported liberal dividend policy and regularity in paying dividends as DPS was the strongest determinant of share price.

Pandey (2012) in his study showed the results generated by Markowitz model stating the risk and returns calculated using this model. This study was conducted to find a way to select optimal portfolio by examining the relation between risk and return using Markowitz model. In this study, 6 portfolios were formed having 5 stocks in each of the portfolio. Portfolio analysis was done first using Interactive risk and portfolio returns by Markowitz model, Variance and Covariance. Then the stocks that have performed well in a particular month are selected; these stocks must have given significant returns within optimum risk. Risk that was calculated was interactive risk calculated under Markowitz model, which considers the overall risk of the portfolio. On the basis of analysis month wise list of top most companies if formed on the basis of Risk and Return, representing an optimal portfolio. Financial planners can help the traders and investors to arrive at the risk level that they can assume using Markowitz model and optimum portfolio can be identified. This study is based on single model and further models can be used to bring optimum portfolios.

Chakrabarty and Lee ( 2017) The purpose of the research was to explore the motives and rationale behind international investment in order to better express the conflicting findings of previous research and provide some answers to the current debate on international diversity. Monthly return data and annual financial data of NYSE listed companies over a period of four to five years were reviewed, with sample companies divided into three groups according to their degree of international diversity. The research focuses on the monthly profit, adjusted market returns, total risk and average risk was analyzed in the research.

An important step in determining whether the difference between the variables under study is statistically significant is to examine whether the data are typically distributed. If the data are normally distributed, the sources of each sample pair can be compared with the help of T- samples. Otherwise, the unilateral analysis of variability was suitable test of equality.



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Siegel et al. (1995) in the research the researcher used a multi-country study and Test how CSRoriented ETFs perform against their global, national and regional market indicators. For every ETF and its associated benchmark market,the researcher calculated risk-adjusted returns over a multi-year period. The research results show that during the sample period, the majority of ETFs showed at least one corresponding market index, and some also improved the market. Relatively new investment vehicles - focusing on CSR-based ETFs - have the impact of a growing SRI sector in our search. In the research the researcher used the Sharpe ratio and multivariate regressions to perform a multi-country study to examine how CSR-oriented ETFs perform against global, national, and regional market indexes. The researcher uses paired groupings of each CSR-oriented ETF with its corresponding index after taking in consideration the adjustments id the risk.

Gautami (2018) gives an idea as how to analyse the fluctuations of share prices. There are 3 companies mentioned in the paper on which they have compared their Risk and Return i.e., Bharti Airtel, Dabur India Panyam and Asian Paint. Risk is determined by the changes in variations. The variance of a portfolio is defined a measure of its variability. It is used to measure the risk of a company by looking at the assets & liabilities of the company. The CAPM model implies that the expected return on the asset which is determined from its Beta value. Beta shows how much the value of a stock is fluctuating with the change in the overall market. High beta means High volatility of the stock and considered as to be Risky whereas low beta is supposed to be less risky.

The study compares the stocks on the basis of Covariance. An investor always looks for a low covariance which helps them in managing their portfolio better. With reference to the paper, Covariance of Asian Paints is 1.028 and Bharti Airtel is 2.91, so the investor has an option to invest in Asian Paints. As an investor, he must have to use Fundamental analysis as well as Technical Analysis so that, investors can analyze the fluctuations in a better way and manage their portfolio better.

Weinraub (1994) discusses about how beta helps in analyzing and determining the risk of an individual investor portfolio. Basically there are 2 measures of calculating the beta variability: Standard Deviation and Coefficient of variation. It is suggested that one-year beta is not sufficient so, they have calculated for 4 years’ period. It has been observed that Beta decreases over 5 years’ period when the number of stocks are increasing in the portfolio. Low beta stock shows they are less volatile with the market and vice-versa. When the 2 companies are exactly opposite to each other, their Covariance will be negative and if they are fluctuations in both the companies are same then, Covariance will be positive. An investor always looks for a low covariance which helps them in managing their portfolio better. First conclusion from the paper is “An investor can reduce the risk of the overall portfolio by replacing the stocks of High beta with low beta stocks”. Second conclusion is Low beta stocks have higher relative beta variability.

Harrington (1983) worked to figure out the reliability of Beta as a predictor for the future returns from the market. He concluded that the future cannot be predicted



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based on historical events as the possibility of Black Swan event can never be ruled out, thus the returns depend more on the stability of markets. It also cannot be said that the calculation of beta is an exercise in futility as if the market behaves normally then beta may help to gauge the future returns.

Wiggins (1992) has attempted to revaluate the findings of Lamoureux and Poon (1987) and Copeland’s (1988); their findings include arbitrarily large values of systematic risk compared to their historical data. A thorough study on the existence of autocorrelation between the returns of stock before stock splits and after stock splits was conducted; this study has been done using Brennan and Copeland’s tests. The correlation on the day t and that of the market return on t-2 by the pre-split returns were considered to be significant as well as positive. Also this suggested that the Fowler- Rorke may not be in a position to capture the majority of the adjustment in the prices, and as a result become a bias estimator. Weekly returns dataset yielded a small discrepancy in the results compared to the results of daily returns dataset when both these datasets were subjected to the Brennan and Copeland’s tests. However, the monthly data established that there was no change in beta.

Malepati (2015) discusses about how the capitalisation has been used as primary indicators to make a comparative analysis of Indian stock exchange with international markets. There has been an attempt to understand the trends, similarities and patterns in the activities of the Indian stock market in comparison to the international markets. The relationship between the Sensex, number of listed companies and market capitalization of the capital market can be computed through the Pearson’s multiple coefficient of correlation. The calculation show ed that the correlation between the market capitalization of the capital market of the BSE and Sensex is positive at 0.97. The relationship between the market capitalization of the capital market of the BSE and listed company is negative at -0.56. The relationship between listed company and Sensex is also negative at -0.59. This clearly indicates that the market capitalization of the capital market of the BSE is quite closely related to Sensex. The higher the Sensex would result in greater capitalization. This showcases that there is no interdependency between the market capitalization of the capital market of the BSE and the number of the listed companies. Also, there is no interdependency between the Sensex and the number of listed companies.

There were several groups in BSE market for the scrips to be traded. ‘A’, ‘B’, ‘E’, ‘M’, ‘MT’, ‘S’, ‘ST’, ‘S’, and ‘Z’ these are some of the groups. These groups are representation of specific class of securities.

The scrips of group A and B put together constituted 95% of the total market in the, for almost a decade from 2001-2010.

Khan (2018) is trying to help the novice but high risk taking investors to construct portfolio by estimating the β values. It is necessary to estimate the β values to identify various risk factors usually incontrollable by nature to improve the returns from their investments.

To create optimum diversifies portfolio with lower betas, there are 3 sectors Health care, Infrastructure and Software which have been chosen. The market capitalization,



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EPS, and P/E ratios were taken into consideration for making the selection of the sector. ‘10 years’ index return Sensex and company returns were also considered.When (β<1) beta is less than 1 it indicates that the selected stocks are less volatile when compared to the current market and this makes investment in such scrips more feasible. Beta calculated for all the companies selected in these sectors in less than 1. The companies have been ranked with respect to their lowest beta values, for the purpose of investment. The investment would be bearing low risk. This would suggest allocation of investment funds.


Research will be based on the secondary data for the BSE group stock companies. The study will be focused on the daily equity data which has been collected for the period starting from 1st April, 2010 to 31st of March, 2020.The data required are collected from the different secondary databases like ace knowledge, yahoo finance and official Bombay Stock Exchange of India, Limited website. The collected data from the different sources are tabulated and structured.

sAmple DesCription

The study is based on the Daily stock price data for last 10 years period (1st April, 2010 to 31st March, 2020) for the below mentioned group stocks of BSE:

• Top 100 stocks as per market capitalization of BSE A group stocks.• Top 100 stocks as per market capitalization of BSE B group stocks.• Top 40 stocks as per market capitalization of BSE Z group stocks.• Top 100 stocks as per market capitalization of BSE T group stocks.

Tools that are taken in consideration for the study are as follows:

Sharpe Measure

The Sharpe measurement is similar to the teynor measurement except that it operates at standard deviation, not beta, as a risk scale.Equation 1 : Sharpe Measure

Following are taken in the consideration:• Sharpe measure gives a linear relationship between risk and return, and

its risk measure is Standard Deviation.• In case of the very diversified portfolios, the two measures i.e. Treynor

measure as well as the Sharpe measure gives identical rankings because in such cases the total risk and systematic risk are the same.



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Jensen Alpha Measure

Jensen alpha ratio tells us the excess ratio that the stock has generated as compared to the returns expected by the CAPM (Capital Asset pricing model). This actually reflects the difference between the return on a portfolio, and according to the capital asset value model, given his on, the return was to obtain a portfolio.

Following is the equation for Jenson:Equation 2. Jensen Measure

Analysis of Variance (ANOVA)

Analysis of variance (ANOVA) is a statistical technique that is used to find whether the means of two or more groups are significantly different from each other. Generally, ANOVA checks the impact of one or more factors by comparing the means of different samples. Moreover, in the research the comparison is made between the arithmetical mean returns of the different group stocks of the BSE for a period ten years.

Further the use of the ANOVA Table in MS-Excel is done for calculation and tabulation of data in the study.

ANALYSIS AND INTERPRETATION

returns

Returns capture the average price movement of the stock. For the study, lognormal returns are calculated. Firstly, the daily lognormal returns of last 10 years, from 1 April 2010 to 30 March 2020 are calculated. And then, the average of those returns is taken for getting the daily average return. Lastly, the daily average returns are multiplied by 252 to get the yearly returns, as we have considered that there are 252 trading days in a year. The analysis of these returns showed that the returns of mostly all the stocks of Group A and Group B are positive while that of Group T and Z are negative. The returns in Group A are as high as 49% given by Bajaj Finance and returns from Group Z are as low as -106.9% given by Ramsarup. So, arranging groups return wise in descending order would be A, B, T and Z.

vAriAnCe AnD stAnDArD DeviAtion (sD)Variance as well as Standard Deviation shows the risk of the stock. Standard deviation shows how much the stock is deviating from the average returns. Both SD and variance are low for the companies belonging to group A and high for the companies belonging to group Z. So, companies of Group A are less risky and companies belonging to Group Z are riskier to invest in. Both variance and SD are calculated on daily basis as well as yearly basis. For yearly basis calculations, 252 trading days are considered.



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CovAriAnCe

Covariance of the stocks is taken with respect to the market. Covariance shows how the stock returns are moving in relation to the market returns. Due to the daily stock data, covariance is not that significant and is approximately same along all the groups and can’t be differentiated as per groups.

CorrelAtion

Correlation is a scaled measurement lying between -1 to 1. Here, correlation of each stock under each group is done with respect to the market. In the study the correlation values is very small and are approximately similar for the stock groups. So, difference can’t be established in groups on the basis of correlation.

Table 1: Ratios of Group Stocks (BSE)

Yearly Portfolio Return

Yearly Portfolio SD

Sharpe Ratio Jensen Ratio

Portfolio figures Grp A 15.485 10.916 33.141 9.450

Portfolio figures Grp B 9.206 13.426 23.138 3.157

Portfolio figures Grp T -15.179 15.194 -36.469 -21.219

Portfolio figures Grp Z -42.991 28.238 -62.272 -48.967

yeArly portfolio returns

Returns of each portfolio are the average returns of all the stocks of each Group that are taken to form that Portfolio. The study considers the returns of all 4 portfolios, Group A portfolio is giving us highest returns while group Z is giving lowest returns and is negative. As A group stocks are from the BSE top 500 stocks and are selected as per highest market capitalization, they give us highest return and provides liquidity as well. While Z group stocks have low returns as they are not in public domain and no information about the company is known to the exchanges, so they are risky to invest.

yeArly portfolio sDStandard deviation of the portfolio is the average of the yearly SD of the stocks falling in that portfolio. In the above 4 portfolios, risk or Standard Deviation is minimum in Group A stocks and Maximum in Group Z stocks. Group A has the lowest risk with highest return, which makes it the best portfolio among all 4 portfolios.

Portfolio A having low risk and high return has questioned the saying of “High Risk and High Returns”

shArpe rAtio

In Sharpe Ratio, Standard deviation is taken to measure the risk of the portfolio. As all the Risk figures are positive, standard inference can be drawn from the Sharpe Ratio. Group A is having the highest ratio which shows an optimum amount of risk and return, i.e. highest returns with lowest risk. While Sharpe Ratio of Group Z is smallest and negative which is due to the negative returns that group Z is generating



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with the highest level of risk. So, Sharpe Ratio is establishing the fact that Group A portfolio is having a good risk-return profile.

Jensen rAtio

Jensen alpha ratio tells us the excess ratio that the stock has generated as compared to the returns expected by the CAPM (Capital Asset pricing model). Here, according to Jensen model, highest excess returns are generated by A group portfolio. While lowest and even negative returns are generated by portfolio of Z group stocks. Jensen model is also considering beta but it does not impact the model results as it had done in the Teynor model. So, according to this model as well, A is the best portfolio to be selected for investment.

hypothesis testing using AnovA At 0.05 level of signifiCAnCe

H0: Average returns of all the groups are same

H1: At least one of them differs.Table 2: ANOVA Table

ANOVA Single Factor

SUMMARY

Groups Count Sum Average Variance

Group A 100 1506.777 15.06777 306.983144

Group B 100 1239.87 12.3987 1155.943213

Group T 100 -2366.137 -23.66137 834.8202033

Group Z 40 -1671.859 -41.796475 753.7324601

Sensex 1 4.874 4.874

ANOVA

Source of Variation MS df MS F P-value F crit

Between Groups 159110.7322 4 39777.68306 52.03088221 4.39E-34 2.398526

Within Groups 256872.4754 336 764.5014148 0.212179

Total 415983.2076 340 8.173186667

As the p-value is less than alpha value, the null hypothesis gets rejected. So, the average returns of different BSE stock groups are different. As the groups are formed on a particular criterion and that criteria differs for all the groups. So, the returns as well as risk of the portfolio of each group will vary and there would not be any similarity in it. This is also proven by ANOVA test.

CONCLUSIONThe study was done in order to understand the performance of various stock groups of Bombay Stock Exchange (BSE). The research was focused on the objective to study performance of various stock groups of Bombay Stock Exchange (BSE). Further the research findings focus on the assumed null hypothesis; Average returns of all the groups are same for the group stocks in BSE for the period of



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ten years. With the help of the different tools used in the study, the returnsfor the various group stocks were analyzed for the period selected. The research has proved substantially that all the selected groups stocks of BSE for the period selected for the study diffed with other groups stocks. Moreover the groups show a similar relationship between themselves.

REFERENCES[1] Balan, S. & Srinivasan, B. (2017). Determinants of Share Price with Reference to BSE “Group

A” shares. EPRA Journals.

[2] Pandey, M. (2012). Application of Markowitz model in analysing risk and return- A case study of BSE stock. Jaunpur, UP: VBS Purvanchal University.

[3] Chakrabarty, B., Lee, S.B. and Singh, N. (2017). “Doing good while making money: Individual investor participation in socially responsible corporations”, Management Decision, Vol. 55 No. 8, pp. 1645-1659.

[4] Siegel, P.H., Omer, K., Rigsby, J.T. and Theerathom, P. (1995). “International Diversification: A Review and Analysis of the Evidence”, Managerial Finance, Vol. 21 No. 9, pp. 50-77.

[5] Gautami, D.S. (2018). A Comparative Study on Risk & Return Analysis of Selected Stocks in India. International Journal Of Management And Economics Invention,04(05). https://doi.org/10.31142/ijmei/v4i5.03.

[6] Herbert J. Weinraub & and Bruce R. Kuhlman. “The Effect of Common stock beta variability on the variability of the portfolio beta”, Financial and Strategic Decisions Volume 7 Number 2 Summer 1994.

[7] Harrington, D.R. (1983). Whose Beta is Best? Financial Analysts Journal, 39(4), 67-73. doi:10.2469/faj.v39.n4.67.

[8] Wiggins, J.B. (1992). Beta Changes around Stock Splits Revisited. The Journal of Financial and Quantitative Analysis, 27(4), 631. doi:10.2307/2331145.

[9] Faisal, S.M., Khan, A.K., &Aboud, O.A.A. (2018). Estimating Beta (β) Values of Stocks in the Creation of Diversified Portfolio - A Detailed Study. Applied Economics and Finance, 5(3), 89. https://doi.org/10.11114/aef.v5i3.3243.

[10] Malepati, Venkataramanaiah (2015). Market Performance of The BSE With Reference to Market Capitalisation. Madras University Journal of Business and Finance. 3. 35-45.



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ANNEXURE - I: GROUP-A PORTFOLIO CALCULATIONSGROUP-A Daily

Average Returns

Yearly Average Returns

Variance Yearly Variance

Deviation Standard

Yearly SD

Covariance Correlation

RELIANCE 0.043 10.858 2.725 686.823 1.651 26.207 -0.034 -0.019

HDFCBANK 0.082 20.718 1.751 441.218 1.323 21.005 0.006 0.004

HINDUNILVR 0.081 20.428 2.101 529.335 1.449 23.007 -0.006 -0.004

IOC 0.052 13.173 3.679 927.060 1.918 30.448 -0.035 -0.017

INFY 0.011 2.661 3.277 825.704 1.810 28.735 0.007 0.003

HDFC 0.062 15.658 2.679 674.994 1.637 25.981 0.009 0.005

BHARTI ARTL 0.017 4.373 4.021 1013.311 2.005 31.833 -0.031 -0.014

KOTAK BANK 0.086 21.632 2.825 711.974 1.681 26.683 0.007 0.004

ICICI BANK 0.050 12.613 4.040 1017.996 2.010 31.906 -0.001 -0.001

ITC 0.042 10.628 2.294 578.080 1.515 24.043 0.002 0.001

HCLTECH 0.075 18.827 3.127 788.024 1.768 28.072 0.018 0.010

MARUTI 0.063 15.946 2.895 729.592 1.702 27.011 0.046 0.025

BAJFINANCE 0.195 49.231 4.490 1131.559 2.119 33.639 -0.028 -0.012

ASIANPAINT 0.094 23.667 2.427 611.647 1.558 24.731 0.030 0.018

SBIN 0.015 3.753 4.302 1084.226 2.074 32.928 -0.011 -0.005

WIPRO 0.020 4.985 2.393 603.154 1.547 24.559 -0.010 -0.006

NESTLEIND 0.074 18.662 2.147 540.947 1.465 23.258 0.018 0.011

DMART 0.146 36.841 4.980 1255.009 2.232 35.426 -0.150 -0.060

AXISBANK 0.054 13.556 4.286 1079.999 2.070 32.863 -0.017 -0.008

HDFCLIFE 0.082 20.544 5.377 1355.080 2.319 36.811 -0.004 -0.002

ULTRACEMCO 0.062 15.672 2.797 704.943 1.673 26.551 0.005 0.003

TITAN 0.114 28.622 4.545 1145.359 2.132 33.843 -0.034 -0.015

ADANIGREEN 0.539 135.926 14.879 3749.510 3.857 61.233 0.117 0.026

BAJAJFINSV 0.134 33.674 4.373 1102.028 2.091 33.197 0.028 0.012

HINDZINC 0.023 5.869 4.029 1015.297 2.007 31.864 -0.045 -0.021

ONGC -0.019 -4.826 3.388 853.796 1.841 29.220 -0.048 -0.024

BPCL 0.060 15.070 4.651 1172.156 2.157 34.237 -0.064 -0.028

NTPC -0.019 -4.865 2.434 613.297 1.560 24.765 -0.056 -0.034

Annexure-I (contd)...



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GROUP-A Daily Average Returns



Deviation Standard

Yearly SD


POWERGRID 0.022 5.506 1.888 475.659 1.374 21.810 0.014 0.010

BRITANNIA 0.118 29.634 2.619 660.095 1.618 25.692 0.014 0.008

DABUR 0.074 18.533 2.315 583.290 1.521 24.151 -0.025 -0.015

SBILIFE 0.028 6.989 4.556 1148.134 2.134 33.884 0.187 0.080

BAJAJ-AUTO 0.052 13.048 2.434 613.292 1.560 24.765 0.040 0.024

DIVISLAB 0.070 17.625 3.550 894.630 1.884 29.910 -0.023 -0.011

COALINDIA -0.042 -10.524 3.523 887.715 1.877 29.795 0.030 0.017

TECHM 0.045 11.367 3.531 889.898 1.879 29.831 -0.002 -0.001

PIDILITIND 0.109 27.536 2.625 661.579 1.620 25.721 -0.030 -0.017

M&M 0.027 6.678 3.119 785.894 1.766 28.034 -0.006 -0.003

DRREDDY 0.038 9.641 2.691 678.028 1.640 26.039 0.030 0.017

ADANIPORTS 0.051 12.926 5.509 1388.256 2.347 37.259 0.020 0.008

SHREECEM 0.101 25.428 3.119 786.110 1.766 28.038 0.040 0.021

GODREJCP 0.086 21.571 3.868 974.843 1.967 31.222 0.059 0.028

JSWSTEEL 0.041 10.262 5.547 1397.824 2.355 37.387 -0.043 -0.017

ICICIPRULI 0.040 10.102 6.009 1514.393 2.451 38.915 -0.066 -0.025

HEROMOTOCO 0.014 3.512 3.000 755.932 1.732 27.494 -0.012 -0.006

ICICIGI 0.089 22.415 5.416 1364.746 2.327 36.942 0.030 0.012

EICHERMOT 0.141 35.548 4.389 1105.949 2.095 33.256 -0.016 -0.007

CIPLA 0.014 3.475 2.437 614.227 1.561 24.784 -0.031 -0.018

BERGEPAINT 0.131 33.132 4.384 1104.704 2.094 33.237 -0.019 -0.009

KEI 0.065 16.296 2.951 743.666 1.718 27.270 -0.035 -0.019

BIOCON 0.073 18.480 4.111 1036.071 2.028 32.188 -0.056 -0.026

INDIGO 0.033 8.294 7.082 1784.757 2.661 42.246 -0.078 -0.028

TATACONSUM 0.058 14.548 4.184 1054.361 2.045 32.471 0.004 0.002

HDFCAMC 0.052 13.019 5.818 1466.120 2.412 38.290 -0.017 -0.006

TATAMOTORS 0.007 1.649 6.197 1561.667 2.489 39.518 -0.085 -0.032

TATAMTRDVR -0.009 -2.363 6.461 1628.203 2.542 40.351 -0.094 -0.034

...Annexure-I (contd.)

Annexure-I (contd.)...



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Deviation Standard

Yearly SD


BANDHANBNK -0.070 -17.696 16.104 4058.235 4.013 63.704 0.186 0.040

VEDL -0.022 -5.526 9.184 2314.460 3.031 48.109 -0.088 -0.029

MARICO 0.077 19.444 2.764 696.540 1.663 26.392 0.068 0.038

TORNTPHARM 0.093 23.361 3.070 773.540 1.752 27.813 -0.071 -0.038

AUROPHARMA 0.065 16.382 6.009 1514.188 2.451 38.913 -0.062 -0.024

GRASIM 0.030 7.489 2.971 748.756 1.724 27.363 -0.014 -0.008

INDUSINDBK 0.096 24.087 4.089 1030.372 2.022 32.099 0.013 0.006

TATASTEEL -0.009 -2.289 5.034 1268.480 2.244 35.616 -0.080 -0.033

MUTHOOTFIN 0.081 20.490 7.505 1891.363 2.740 43.490 0.079 0.030

NAUKRI 0.100 25.139 4.577 1153.400 2.139 33.962 0.022 0.010

SIEMENS 0.039 9.741 3.676 926.445 1.917 30.438 -0.079 -0.038

LUPIN 0.039 9.811 3.023 761.731 1.739 27.599 -0.033 -0.018

AMBUJACEM 0.028 7.111 3.522 887.611 1.877 29.793 -0.025 -0.013

HAVELLS 0.102 25.679 4.325 1089.934 2.080 33.014 -0.028 -0.013

GAIL 0.003 0.732 3.219 811.152 1.794 28.481 -0.064 -0.033

HINDALCO 0.010 2.607 6.022 1517.664 2.454 38.957 -0.085 -0.032

IDBI -0.052 -13.156 6.789 1710.774 2.606 41.362 -0.008 -0.003

DLF -0.016 -4.116 9.019 2272.847 3.003 47.674 0.004 0.001

COLPAL 0.059 14.854 1.930 486.270 1.389 22.052 -0.024 -0.016

BOSCHLTD 0.046 11.690 2.419 609.499 1.555 24.688 -0.032 -0.020

CADILAHC 0.044 10.994 3.536 890.982 1.880 29.849 0.020 0.010

INFRATEL 0.003 0.694 6.476 1632.053 2.545 40.399 0.071 0.028

YESBANK -0.005 -1.301 9.943 2505.519 3.153 50.055 -0.017 -0.005

MOTHERSUMI 0.084 21.254 5.471 1378.591 2.339 37.129 0.095 0.038

PETRONET 0.082 20.682 3.649 919.658 1.910 30.326 -0.040 -0.019

ABBOTINDIA 0.112 28.312 2.619 659.911 1.618 25.689 -0.035 -0.020

ALKEM 0.064 16.155 3.230 813.906 1.797 28.529 -0.041 -0.022

PGHH 0.076 19.179 2.049 516.440 1.432 22.725 -0.019 -0.013


Annexure-I (contd.)...



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Deviation Standard

Yearly SD


ADANIENT -0.030 -7.652 22.254 5607.884 4.717 74.886 -0.084 -0.017

PNB -0.044 -11.133 6.381 1608.098 2.526 40.101 -0.045 -0.017

JUBLFOOD 0.113 28.400 6.559 1652.852 2.561 40.655 -0.019 -0.007

HONAUT 0.103 25.983 3.653 920.652 1.911 30.342 -0.007 -0.003

HINDPETRO 0.043 10.746 5.994 1510.580 2.448 38.866 -0.058 -0.022

ADANITRANS 0.183 46.185 10.502 2646.545 3.241 51.445 0.116 0.034

PEL 0.057 14.366 4.697 1183.617 2.167 34.404 -0.045 -0.019

GLAXO 0.028 7.118 1.743 439.198 1.320 20.957 0.016 0.011

PIIND 0.144 36.375 5.609 1413.503 2.368 37.597 -0.046 -0.020

WHIRLPOOL 0.116 29.167 4.793 1207.895 2.189 34.755 0.099 0.042

KANSAINER 0.094 23.571 2.981 751.089 1.726 27.406 0.009 0.005

UBL 0.084 21.125 6.367 1604.496 2.523 40.056 -0.046 -0.017

NMDC -0.051 12.953 4.661 1174.508 2.159 34.271 0.059 -0.026




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ANNEXURE - II: GROUP-B PORTFOLIO CALCULATIONSGROUP-B Daily

Average Returns

Yearly Returns


Standard Deviation

Yearly SD


DEN 0.007 1.768 4.445 1120.222 2.108 33.470 0.002 0.001

SBICARD 0.179 45.151 12.834 3234.263 3.583 56.871 -0.184 -0.051

TATACOMM 0.010 2.603 5.221 1315.607 2.285 36.271 -0.064 -0.026

IRCTC 0.276 69.659 10.464 2637.006 3.235 51.352 0.334 0.095

SUNDARMFIN 0.091 22.983 2.723 686.144 1.650 26.194 -0.026 -0.015

INDIAMART 0.440 110.885 13.501 3402.322 3.674 58.329 0.006 0.001

SUMICHEM 0.312 78.727 15.393 3879.014 3.923 62.282 -0.397 -0.100

IBVENTURES 0.067 17.003 11.129 2804.458 3.336 52.957 -0.138 -0.039

BBL -0.016 -4.106 4.680 1179.467 2.163 34.343 0.012 0.005

SUVENPHAR 0.569 143.454 21.088 5314.197 4.592 72.899 0.292 0.065

IIFLWAM -0.107 -26.955 11.225 2828.750 3.350 53.186 0.079 0.021

KIOCL 0.296 74.612 14.044 3539.186 3.748 59.491 -0.001 0.000

AFFLE 0.445 112.236 13.678 3446.731 3.698 58.709 0.097 0.024

ALKYLAMINE 0.159 40.079 8.144 2052.391 2.854 45.303 -0.003 -0.001

AARTIDRUGS 0.097 24.514 5.862 1477.173 2.421 38.434 0.059 0.023

UJJIVANSFB -0.260 -65.589 14.320 3608.531 3.784 60.071 0.113 0.029

FLUOROCHEM -0.137 -34.580 13.069 3293.475 3.615 57.389 0.252 0.065

ASAHIINDIA 0.050 12.634 5.341 1345.817 2.311 36.685 -0.028 -0.011

ABB 0.003 0.702 2.444 615.871 1.563 24.817 0.032 0.019

PNC 0.041 10.354 2.248 566.544 1.499 23.802 0.003 0.002

IOLCP 0.114 28.707 14.152 3566.251 3.762 59.718 -0.106 -0.029

POLYMED 0.124 31.354 6.940 1748.837 2.634 41.819 -0.105 -0.041

ROSSARI 0.143 36.144 9.823 2475.335 3.134 49.753 -0.595 -0.164

SWSOLAR -0.376 -94.868 18.960 4777.904 4.354 69.122 -0.417 -0.086

BHARATRAS 0.199 50.093 12.260 3089.627 3.501 55.584 -0.075 -0.023

POWERINDIA 0.228 57.438 2.460 619.982 1.569 24.899 0.140 0.089

Annexure-II (contd.)...



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GROUP-B Daily Average Returns

Yearly Returns


Standard Deviation

Yearly SD


CSBBANK -0.146 -36.671 12.631 3183.109 3.554 56.419 -0.148 -0.041

ELGIEQUIP 0.073 18.492 4.239 1068.321 2.059 32.685 0.019 0.009

TANLA 0.005 1.224 12.059 3038.856 3.473 55.126 -0.035 -0.009

SEQUENT -0.019 -4.761 10.043 2530.871 3.169 50.308 0.002 0.000

DHANUKA 0.094 23.637 5.280 1330.517 2.298 36.476 -0.025 -0.011

SPANDANA -0.144 -36.379 14.004 3528.884 3.742 59.404 0.044 0.011

SOLARA 0.251 63.161 13.886 3499.198 3.726 59.154 -0.053 -0.012

SUNCLAYLTD 0.115 28.889 4.711 1187.152 2.170 34.455 0.047 0.020

KSCL 0.095 23.864 6.227 1569.301 2.495 39.614 -0.078 -0.029

CHALET -0.165 -41.587 9.952 2507.857 3.155 50.079 -0.287 -0.078

CMI 0.054 13.718 3.424 862.843 1.850 29.374 -0.003 -0.002

FACT 0.005 1.382 10.848 2733.796 3.294 52.286 -0.163 -0.046

KARURVYSYA 0.015 3.760 2.869 722.927 1.694 26.887 0.065 0.036

ALEMBICLTD 0.034 8.508 13.044 3286.987 3.612 57.332 -0.146 -0.038

BALAMINES 0.106 26.708 9.160 2308.221 3.026 48.044 -0.049 -0.015

ICRA 0.052 13.023 2.972 748.897 1.724 27.366 -0.057 -0.031

JSWHL 0.009 2.346 7.309 1841.953 2.704 42.918 -0.058 -0.020

TATASTLBSL -0.091 -23.045 8.988 2264.991 2.998 47.592 -0.057 -0.018

SHARDACROP 0.009 2.273 7.653 1928.613 2.766 43.916 -0.077 -0.026

GAEL 0.075 18.849 9.690 2441.996 3.113 49.417 -0.121 -0.036

ORIENTREF 0.094 23.797 6.623 1668.946 2.573 40.853 -0.005 -0.002

TECHNOE -0.079 -19.870 7.528 1896.949 2.744 43.554 -0.101 -0.031

PRINCEPIPE 0.114 28.752 15.333 3863.951 3.916 62.161 -0.323 -0.079

FAIRCHEM 0.003 0.873 0.000 0.001 0.002 0.033 0.000 -0.003

ASTEC 0.070 17.698 11.941 3009.142 3.456 54.856 -0.027 -0.007

INDOCO 0.056 14.226 6.638 1672.881 2.577 40.901 0.000 0.000

ESABINDIA 0.036 9.002 5.002 1260.561 2.237 35.504 0.061 0.025

...Annexure-II (contd.)




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Yearly Returns


Standard Deviation

Yearly SD


GRSE 0.117 29.556 10.002 2520.586 3.163 50.205 -0.208 -0.055

FMGOETZE 0.061 15.315 5.251 1323.329 2.292 36.378 -0.020 -0.008

PPL 0.004 1.003 1.224 308.452 1.106 17.563 0.002 0.001

PAPERPROD 0.058 14.521 4.700 1184.317 2.168 34.414 -0.001 0.000

MASTEK 0.003 0.743 13.862 3493.334 3.723 59.104 -0.066 -0.017

NIITLTD 0.015 3.763 7.067 1780.857 2.658 42.200 0.019 0.007

VESUVIUS 0.067 16.952 3.330 839.113 1.825 28.967 0.043 0.022

HIKAL 0.031 7.733 5.197 1309.614 2.280 36.189 -0.007 -0.003

SWARAJENG 0.055 13.771 3.063 771.814 1.750 27.782 0.008 0.005

MARKSANS 0.048 12.167 13.670 3444.792 3.697 58.692 0.062 0.016

INGERRAND 0.025 6.234 4.044 1019.206 2.011 31.925 -0.066 -0.031

HNDFDS 0.294 74.144 10.317 2599.848 3.212 50.989 0.237 0.066

JINDALPOLY 0.012 2.964 8.312 2094.720 2.883 45.768 -0.049 -0.016

NAVNETEDUL 0.032 8.044 3.574 900.583 1.890 30.010 0.042 0.021

SCHNEIDER 0.013 3.271 7.336 1848.589 2.708 42.995 0.060 0.023

TRIVENI -0.017 -4.357 13.744 3463.374 3.707 58.850 0.166 0.042

JPPOWER -0.150 -37.800 12.895 3249.565 3.591 57.005 -0.085 -0.022

NFL -0.038 -9.461 7.996 2015.067 2.828 44.889 -0.059 -0.020

KIRIINDUS -0.021 -5.254 15.337 3864.876 3.916 62.168 0.026 0.006

JTEKTINDIA 0.067 16.917 7.605 1916.453 2.758 43.777 0.022 0.008

PAISALO 0.046 11.592 9.789 2466.830 3.129 49.667 0.031 0.009

AHLUCONT 0.017 4.180 8.038 2025.578 2.835 45.006 0.010 0.003

ICIL 0.106 26.732 15.471 3898.629 3.933 62.439 0.209 0.050

UNICHEMLAB 0.009 2.179 4.923 1240.671 2.219 35.223 -0.024 -0.010

DAAWAT 0.051 12.726 9.442 2379.340 3.073 48.778 -0.062 -0.019

RENUKA -0.106 -26.650 10.075 2538.805 3.174 50.387 -0.070 -0.021

...Annexure-II (contd.)...




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Yearly Returns


Standard Deviation

Yearly SD


ATFL 0.034 8.450 4.043 1018.737 2.011 31.918 -0.005 -0.003

KIRLOSENG -0.029 -7.336 4.984 1256.004 2.233 35.440 0.030 0.014

RAMCOIND 0.054 13.661 7.976 2010.003 2.824 44.833 0.016 0.005

KENNAMET -0.101 -25.528 8.392 2114.822 2.897 45.987 -0.066 -0.021

NEOGEN 0.295 74.405 10.563 2661.955 3.250 51.594 0.002 0.001

SUBROS 0.074 18.585 8.632 2175.280 2.938 46.640 0.067 0.021

BANARISUG -0.023 -5.720 5.571 1403.951 2.360 37.469 0.108 0.043

VSTTILLERS 0.061 15.355 5.007 1261.766 2.238 35.521 0.000 0.000

NUCLEUS 0.024 5.971 7.483 1885.733 2.736 43.425 -0.060 -0.021

VISHAL -0.072 -18.102 5.033 1268.353 2.243 35.614 -0.263 -0.106

GABRIEL 0.080 20.061 7.229 1821.779 2.689 42.682 0.041 0.014

RUPA 0.013 3.354 7.667 1932.206 2.769 43.957 0.081 0.030

SANDHAR -0.043 -10.764 6.212 1565.435 2.492 39.566 -0.179 -0.062

NEWGEN -0.029 -7.338 7.977 2010.120 2.824 44.834 0.031 0.010

ACCELYA 0.098 24.602 6.467 1629.778 2.543 40.371 -0.066 -0.024

PSPPROJECT 0.091 22.928 5.239 1320.284 2.289 36.336 0.031 0.012

HGS 0.009 2.350 4.268 1075.606 2.066 32.796 -0.021 -0.009

CGPOWER -0.126 -31.782 15.511 3908.741 3.938 62.520 0.014 0.003

RTNPOWER -0.116 -29.123 10.710 2698.870 3.273 51.951 -0.084 -0.024

...Annexure-II (contd.)...



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ANNEXURE III: GROUP-T PORTFOLIO CALCULATIONSGROUP-T Daily

Average Returns

Yearly Returns


Standard Deviation

Yearly SD


SENSEX 0.019 4.874 1.142 287.788 1.069 16.964 1.142 1.000

HATHWAY -0.033 -8.304 9.154 2306.699 3.025 48.028 -0.153 -0.047

VCU 0.022 5.652 16.565 4174.495 4.070 64.610 -0.063 -0.015

5PAISA 0.067 16.770 13.685 3448.600 3.699 58.725 0.288 0.070

RCOM -0.215 -54.131 15.322 3861.187 3.914 62.138 -0.150 -0.036

KARDA 0.174 43.822 9.754 2458.068 3.123 49.579 0.038 0.011

BUTTERFLY -0.024 -6.012 12.087 3045.899 3.477 55.190 -0.072 -0.020

BRFL -0.158 -39.748 7.319 1844.348 2.705 42.946 -0.004 -0.001

HTMEDIA -0.089 -22.438 5.270 1327.965 2.296 36.441 -0.173 -0.070

EKC -0.063 -15.956 12.577 3169.417 3.546 56.298 0.035 0.009

VIMTALABS 0.049 12.293 12.245 3085.719 3.499 55.549 -0.028 -0.007

XELPMOC 0.271 68.369 17.223 4340.137 4.150 65.880 -0.176 -0.036

MIC 0.047 11.727 3.830 965.110 1.957 31.066 0.018 0.009

SKC -0.025 -6.231 2.485 626.285 1.576 25.026 -0.105 -0.062

JAYNECOIND -0.084 -21.180 12.653 3188.497 3.557 56.467 0.010 0.003

RSWM -0.001 -0.225 6.689 1685.524 2.586 41.055 -0.085 -0.031

EROSMEDIA -0.088 -22.296 11.178 2816.792 3.343 53.073 -0.097 -0.030

MCLEODRUSS -0.160 -40.253 5.888 1483.880 2.427 38.521 0.026 0.010

SWELECTES -0.006 -1.510 8.537 2151.255 2.922 46.382 -0.039 -0.012

ROHLTD -0.001 -0.212 9.000 2268.026 3.000 47.624 -0.079 -0.025

ESSARSHPNG -0.054 -13.498 10.362 2611.197 3.219 51.100 -0.038 -0.012

BALLARPUR -0.162 -40.920 10.127 2551.953 3.182 50.517 0.058 0.017

VISHNU -0.013 -3.298 12.995 3274.866 3.605 57.226 -0.028 -0.007

VIKASECO 0.001 0.233 18.570 4679.675 4.309 68.408 -0.097 -0.023

HEXATRADE X -0.055 -13.849 13.851 3490.497 3.722 59.080 0.039 0.011

GENESYS -0.023 -5.846 13.781 3472.849 3.712 58.931 0.090 0.023

Annexure-III (contd.)...



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GROUP-T Daily Average Returns

Yearly Returns


Standard Deviation

Yearly SD


BLKASHYAP -0.037 -9.418 16.820 4238.750 4.101 65.106 0.001 0.000

HITECHCORP -0.013 -3.178 11.888 2995.765 3.448 54.734 0.004 0.001

SHREYAS 0.012 3.029 12.980 3270.904 3.603 57.192 0.056 0.015

RUCHINFRA -0.131 -33.020 9.786 2466.032 3.128 49.659 -0.170 -0.051

SETCO -0.146 -36.690 10.460 2635.910 3.234 51.341 0.026 0.007

PRAXIS -0.296 -74.570 13.127 3308.024 3.623 57.515 0.303 0.073

VENUSREM -0.103 -25.835 11.334 2856.266 3.367 53.444 -0.023 -0.006

ISMTLTD -0.102 -25.642 11.861 2989.047 3.444 54.672 0.032 0.009

IITL -0.066 -16.521 15.128 3812.236 3.889 61.743 -0.051 -0.013

EMAMIREAL -0.048 -12.055 13.319 3356.393 3.650 57.934 0.029 0.007

MBECL -0.165 -41.662 7.703 1941.212 2.775 44.059 0.015 0.005

RANASUG -0.055 -13.938 13.109 3303.575 3.621 57.477 0.081 0.021

NDL 0.009 2.316 9.427 2375.590 3.070 48.740 -0.069 -0.021

8KMILES -0.013 -3.292 16.721 4213.714 4.089 64.913 0.148 0.034

TRF -0.068 -17.178 11.732 2956.498 3.425 54.374 -0.175 -0.048

ROLLT -0.153 -38.546 14.124 3559.153 3.758 59.659 -0.218 -0.052

WANBURY -0.051 -12.820 10.628 2678.277 3.260 51.752 -0.022 -0.006

MINDTECK -0.106 -26.762 11.568 2915.250 3.401 53.993 -0.048 -0.013

MAHAPEXLTD -0.181 -45.713 10.182 2565.761 3.191 50.653 0.193 0.052

MODIRUBBER -0.214 -53.876 11.068 2789.132 3.327 52.812 0.051 0.013

BIGBLOC 0.042 10.519 12.800 3225.529 3.578 56.794 0.024 0.006

RAMASTEEL -0.039 -9.948 10.381 2616.102 3.222 51.148 0.114 0.034

KALYANIFRG -0.003 -0.659 9.570 2411.614 3.094 49.108 -0.111 -0.037

KSERASERA -0.101 -25.517 226.352 57040.590 15.045 238.832 0.314 0.020

GARDENSILK -0.075 -18.845 9.479 2388.684 3.079 48.874 -0.008 -0.003

MEGASOFT -0.050 -12.691 14.626 3685.878 3.824 60.711 0.169 0.041

...Annexure-III (contd.)




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Yearly Returns


Standard Deviation

Yearly SD


CINEVISTA 0.005 1.294 17.876 4504.777 4.228 67.118 -0.013 -0.003

NEXTMEDIA -0.066 -16.617 25.234 6358.852 5.023 79.742 0.041 0.008

BVCL -0.031 -7.699 12.090 3046.777 3.477 55.198 -0.022 -0.006

BLBLIMITED -0.047 -11.866 17.832 4493.726 4.223 67.035 0.078 0.019

ATLASCYCLE -0.033 -8.325 8.189 2063.702 2.862 45.428 0.010 0.003

FLEXITUFF -0.121 -30.580 10.007 2521.854 3.163 50.218 0.024 0.008

RMCL -0.055 -13.967 15.902 4007.389 3.988 63.304 0.016 0.004

LPDC -0.066 -16.527 17.327 4366.411 4.163 66.079 -0.008 -0.002

SANGHVIFOR -0.076 -19.227 13.817 3481.920 3.717 59.008 -0.042 -0.012

BEARDSELL 0.017 4.227 14.587 3675.857 3.819 60.629 -0.048 -0.013

GTL -0.227 -57.287 15.116 3809.320 3.888 61.720 -0.180 -0.043

ARCOTECH -0.173 -43.547 12.604 3176.284 3.550 56.359 -0.024 -0.006

IVC -0.051 -12.877 10.925 2753.150 3.305 52.470 -0.083 -0.023

KERNEX -0.080 -20.161 9.609 2421.453 3.100 49.208 0.025 0.008

METALFORG E -0.110 -27.699 12.097 3048.440 3.478 55.213 -0.019 -0.005

PSL 0.043 10.785 0.706 178.004 0.840 13.342 -0.025 -0.028

JITFINFRA -0.217 -54.707 9.835 2478.352 3.136 49.783 0.235 0.067

GOLDTECH -0.058 -14.695 16.780 4228.667 4.096 65.028 0.001 0.000

INFOMEDIA -0.136 -34.374 14.458 3643.316 3.802 60.360 0.067 0.018

JHS 0.004 0.883 0.538 135.536 0.733 11.642 -0.011 -0.014

NATNLSTEEL -0.097 -24.394 10.035 2528.932 3.168 50.288 -0.009 -0.003

INDSWFTLTD -0.095 -24.048 11.236 2831.538 3.352 53.212 -0.038 -0.011

DHARSUGAR -0.104 -26.265 14.004 3529.083 3.742 59.406 0.008 0.002

GLOBOFFS -0.144 -36.333 12.952 3263.833 3.599 57.130 -0.072 -0.019

ANKITMETAL -0.168 -42.422 36.087 9093.950 6.007 95.362 0.103 0.017

STAMPEDE -0.414 104.233 25.388 6397.749 5.039 79.986 -0.146 -0.026





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Yearly Returns


Standard Deviation

Yearly SD


SCAPDVR -0.195 -49.033 65.665 16547.585 8.103 7 0.082 0.009

ZENITHSTL -0.135 -34.076 28.521 7187.382 5.341 84.778 -0.144 -0.028

SATHAISPAT -0.134 -33.672 11.883 2994.501 3.447 54.722 0.023 0.006

CASTEXTECH -0.169 -42.699 15.685 3952.642 3.960 62.870 0.093 0.022

ROHITFERRO -0.145 -36.533 37.290 9397.139 6.107 96.939 0.073 0.011

PREMIER -0.184 -46.331 10.772 2714.527 3.282 52.101 -0.043 -0.012

VIVIDHA -0.190 -48.000 52.229 13161.624 7.227 4 0.015 0.002

TECHNOFAB -0.142 -35.790 9.957 2509.097 3.155 50.091 -0.031 -0.009

ADROITINFO -0.184 -46.441 12.055 3037.972 3.472 55.118 0.139 0.038

GAYAHWS -0.580 -146.277 71.406 17994.367 8.450 134.14 3 -0.294 -0.029

CALSOFT -0.076 -19.183 14.136 3562.393 3.760 59.686 -0.027 -0.007

VICEROY -0.141 -35.548 10.754 2710.120 3.279 52.059 0.030 0.009

STINDIA -0.051 -12.853 15.652 3944.206 3.956 62.803 0.042 0.010

JIKIND -0.169 -42.577 46.306 11669.197 6.805 108.02 4 -0.123 -0.018

TNTELE -0.097 -24.354 10.567 2663.001 3.251 51.604 0.080 0.025

RADAAN -0.048 -11.977 19.491 4911.689 4.415 70.083 -0.028 -0.007

KAUSHALYA -0.106 -26.695 21.423 5398.656 4.629 73.476 0.011 0.003

IMPEXFERRO -0.122 -30.796 2366.255 596296.18 6 48.644 772.20 2 -1.082 -0.023

SUJANAUNI -0.174 -43.773 54.740 13794.501 7.399 117.45 0 -0.262 -0.033

BLUECOAST -0.326 -82.096 16.517 4162.290 4.064 64.516 -0.126 -0.029

TVVISION -0.528 132.990 12.195 3073.051 3.492 55.435 0.217 0.056

TANTIACONS -0.161 -40.612 11.660 2938.438 3.415 54.207 -0.114 -0.031




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ANNEXURE IV: GROUP-Z PORTFOLIO CALCULATIONSGROUP-Z Daily

Average Returns

Yearly Returns


Standard Deviation

Yearly SD


SENSEX 0.019 4.874 1.142 287.788 1.069 16.964 1.142 1.000

UNITECH -0.182 -45.879 15.980 4026.91 8 3.997 63.458 -0.082 -0.019

JETAIRWAY S -0.104 -26.238 16.982 4279.41 5 4.121 65.417 0.007 0.002

HDIL -0.198 -49.915 13.991 3525.60 8 3.740 59.377 -0.065 -0.016

SANWARIA -0.088 -22.169 16.544 4169.15 1 4.067 64.569 -0.113 -0.026

VIDEOIND -0.170 -42.802 6.031 1519.73 0 2.456 38.984 -0.118 -0.045

PUNJLLOYD -0.210 -52.983 10.755 2710.34 5 3.280 52.061 -0.080 -0.023

IL&FSENGG -0.183 -46.138 12.076 3043.13 3 3.475 55.165 0.002 0.001

SELMCL -0.195 -49.248 15.735 3965.12 7 3.967 62.969 0.121 0.029

EDUCOMP -0.264 -66.644 10.345 2606.94 5 3.216 51.058 0.022 0.006

KOHINOOR -0.077 -19.453 10.426 2627.23 9 3.229 51.257 -0.025 -0.007

SUPREMEIN F -0.113 -28.396 10.749 2708.79 9 3.279 52.046 -0.051 -0.014

COX&KINGS -0.200 -50.469 7.165 1805.56 5 2.677 42.492 0.001 0.000

GOENKA -0.090 -22.693 47.631 12002.9 17 6.901 109.55 8 -0.041 -0.006

NITINFIRE -0.144 -36.227 15.326 3862.22 3 3.915 62.147 0.057 0.014

PARABDRUG S -0.134 -33.853 14.802 3730.18 5 3.847 61.075 0.066 0.016

UNITY -0.240 -60.359 17.911 4513.69 5 4.232 67.184 0.065 0.014

EMCO -0.196 -49.488 11.134 2805.65 4 3.337 52.968 0.060 0.017

EASUNREYR L -0.151 -38.096 10.236 2579.54 2 3.199 50.789 -0.016 -0.005

CANDC -0.196 -49.296 13.300 3351.56 9 3.647 57.893 0.099 0.025

BARTRONIC S 0.192 - -48.341 12.874 3244.273 3.588 56.959 0.102 0.027

SPENTEX -0.155 -39.128 24.739 6234.183 4.974 78.957 0.098 0.018

RAJRAYON -0.125 -31.553 185.065 46636.413 13.604 215.95 5 0.517 0.036

METKORE -0.131 -32.986 22.695 5719.01 6 4.764 75.624 0.038 0.008

UNIPLY -0.077 -19.500 15.937 4016.18 5 3.992 63.373 0.022 0.005

Annexure-IV (contd.)...



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GROUP-Z Daily Average Returns

Yearly Returns


Standard Deviation

Yearly SD


SMPL 0.080 20.052 6.342 1598.11 5 2.518 39.976 -0.017 -0.006

DIGJAMLTD -0.342 -86.133 16.401 4133.14 1 4.050 64.290 -0.038 -0.009

JYOTISTRUC -0.220 -55.515 5.664 1427.30 5 2.380 37.780 0.106 0.041

DIAPOWER -0.155 -38.937 7.945 2002.08 3 2.819 44.745 -0.018 -0.006

SEZAL -0.307 -77.308 16.590 4180.73 1 4.073 64.659 0.127 0.029

EON -0.132 -33.220 15.561 3921.31 5 3.945 62.620 -0.132 -0.031

JAINSTUDIO -0.040 -10.067 16.387 4129.45 1 4.048 64.261 0.503 0.115

EUROCERA -0.301 -75.804 14.366 3620.22 4 3.790 60.168 -0.016 -0.004

THIRUSUGA R -0.135 -34.100 12.380 3119.63 5 3.518 55.854 0.013 0.003

LAKPRE -0.073 -18.366 9.207 2320.06 7 3.034 48.167 -0.010 -0.003

MELSTAR -0.165 -41.495 14.396 3627.90 5 3.794 60.232 0.056 0.014

ORTEL -0.317 -80.000 10.009 2522.34 4 3.164 50.223 0.038 0.011

JAIHINDPRO -0.271 -68.169 17.676 4454.42 2 4.204 66.741 0.214 0.047

RAMSARUP -0.424 -106.920 13.194 3324.87 1 3.632 57.662 0.136 0.035

KGL -0.386 -97.368 64.600 16279.1 13 8.037 127.59 0 0.488 0.056

HMT 0.181 45.578 238.529 60109.3 75 15.444 245.17 2 -0.010 -0.001

...Annexure-IV (contd.)


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8

Competency Modelling in IT Industry

Apoorva Sacheti1, Sarthak Chandrana2 and Shashwat Tripathi3

1,2,3Institute of Management, Nirma University, Ahmedabad

ABSTRACT

Competency modelling as part of the HR subsystem is being adopted and followed by more and more organizations with time. In this paper, we have tried to converge our focus of research to the usage of competency modelling in the IT industry in India. We have restricted the scope of this research paper to the frequency of usage of competency modelling in IT organizations, the trends in its usage, and finally, the result obtained by it. The content in this paper Is an amalgamation of primary data, subject material from different articles/research papers, Reviews from various industry HR experts, and insights from university faculties. In this research paper, we have tried to understand and analyse the degree to which competency modelling is used in the IT industry. Relating it with results obtained by the same.

INTRODUCTION

In ever-increasing business markets, industries are competing and competing at a cutthroat level. No one would have thought 10 years ago that Nikon would be destroyed by Apple iPhones. AMAZON would fulfil the orders on last-mile strategies in scales which might astonish you. The point being organizations are evolving and competing inter industries, gone are the days when your competitors were someone in the same business. Right now, we live in a world which is so volatile and so dynamic, every individual Is a prospective customer or competitor. It is only natural for organization amongst every sector to do whatever they can to sustain and thrive in the cutthroat market. To gain a competitive edge, most of the organization nowadays try to build their arsenal of employees with star performers and top-notch talent in the industry. This idea of ideal employees is the very fundamental principle of an HR subsystem, commonly known as competency modelling.


We have tried to integrate the primary and secondary data as per theory and practical model. Meaning primary data for recording usage of the competency modelling in the IT industry and theories related to its concept as secondary data.



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Primary Data

Snowball survey through questionnaire made with the help of industry expert, workshops attended on competency mapping and modelling and educational interviews with industry.

Survey Questionnaire

Questionnaire method was adopted to record and collect the data of the survey of 10 managers of 9 different IT organizations. The questions for the same was designed with help inferences drawn from competency mapping workshops and educational interview with industry experts.

Secondary Data

Research papers in competency modelling and HR subsystems, prior studies made on the competency modelling.

OBJECTIVEWith this research paper, we have tried to analyse the actual responses associated with the use of competency modelling in HR subsystem. To systemically conclude that whether the competency modelling approach is used in the emerging IT industry. Also, to identify if there is a shift in the trend of usage of competency modelling. Furthermore, we have tried to identify the upcoming competencies which might be preferred for potential employees in the IT industry.

COMPETENCY MODELLING

The environment that an organization functions in is highly competitive and dynamic. For it to be successful it is necessary that it has a competitive edge over its competitors. Competencies helps in achieving that edge as an organization is what it is because of its employees. Competencies can be defined as the underlying traits and characteristics of employees that contribute to enhance employee performance and leads to organizational success. By mapping competencies, they can understand the key competencies that the employees of their organization possess and what all new competencies do they require to recruit. And for that comes the use of Competency models. Competency models are widely used by corporate sectors to establish expectations related to performance excellence and help employees align their behavior with these expectations.

A competency model is a behavioral job description that must be defined by each occupational function and each job (Fogg 1999). Competency model is a framework that defines the key skills and knowledge required in a particular job developed by the HR department so as to ensure that the job performances are on track. It is the collection of all those competencies that differentiate good and average job performance in a work setting. Competency models provides us with specific details about the behavior that should be must in order to perform a task. Competency models are widely used in organizations to define competencies needed by them in the form of both hard as well as soft skills.



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Competency Models are becoming popular day by day as these models analyze the abilities and skills that an organization requires to achieve competitive edge.

These models work as the foundation for various functions of human resources like recruitment, training and development, promotion etc. These models are developed with specific jobs, job groups, organizations in mind.

While making the model, HR managers have to keep in mind that competencies of which area are being talked about. There are thousands of competencies and out of those it’s the task of the HR manager to find the competencies that fit in exactly with the job and with the culture of the organization. Many organizations have given years to build the perfect competency model for their organization and many are still striving to achieve the best one. Although there isn’t any strict method that one has to follow while developing the models, still there are many common steps that every organization delves into, like setting up competency names and giving out the detailed information about what is expected from that competency. The models vary from organization to organization as per their relevance in the organization.

CompetenCy bAseD mAnAgement AnD hrNow that we’re living in the volatility, Uncertainty, Complexity and Ambiguity (VUCA) world, we can’t live the same way that we used to. Transition is a must, and as years goes by HR practitioners are also realizing that. Industry 4.0 has brought in with it the transformation from industrial workings to technical excellence, and that’s where the knowledge and skills come into place- to cater to that change. Now, competencies are the differentiating factors and the source of success. HRM practices are no longer restricted to just recruitment, training, promotion etc. They have gotten amplified with the mix of traditional plus the modern approaches. Now the HRM practices include a competency-based approach in all the areas be it recruitment, training and development, performance appraisal etc. These competencies differ department wise, job wise, and even organization wise. Proper competency models are made and followed throughout the functions of Human resource manager. These well stated approaches provide the HR with a clear mindset and understanding of the requirements and the end result that is required for them to achieve. Sparrow (1995) observed that competency literature includes a huge range of claimed benefits specific to HR processes in organization.

ChAllenges while using CompetenCy moDels

Competency models are not the sole solution for every hiring and selection decision or other managerial functions (Cockerill, Hunt, Schroder, 1995), nor should they be the only tool utilized in meeting education and training needs (Dalton, 1997). Simply putting, there are various other methods and functions that have to be undergone while a process is going on. Furthermore, there are thousands of ever-changing competencies, implementing a model based of the most relevant one that too on a timely bases are a challenging task. As soon as the model is completed, need for a new competency comes up, hence managing them and bring on track with the same is never an easy task.



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CompetenCy bAseD orgAnizAtion

Nowadays we are talking of organization acquiring competencies to meet the VUCA environment. Competence based organization makes employees competitive and do better than other organization. Competency based organization has following characteristics:

• Every employee knows his/her job and not only job but also the purpose, linkage with other jobs so the employee has to be knowledgeable about jobs.

• Employee should know the activities that are associated with the job also the priorities of these activities and the weightages associated with KPAs and KRAs at any given point of time.

• A knowledge-based organization fully aware of its tasks and responsibilities. Employee should know the skills, attitude, knowledge and values to perform the job successfully.

• In the competency-based organization the details of the roles and the competency profile required internally for every employee.

• There is constant assessment of competencies as people changes and role too by using the competency maps that are available. Identification of the developmental gaps and preparation of developmental plans for the leadership positions.

• Culture, values and vision are shared by all the employees.

Fig. 1: Competency: A Combination of Knowledge, Skills and Abilities (KSAs) Describing the Demonstrable Indicators of Proficiency

Core competencies are the set of skills, knowledge and abilities that an employee needs in order to be successful in the organization. Core competencies are applicable



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for all the roles and it is first and foremost important for every employee in the organization. After the core competencies there are different competencies for different job roles. In this research paper we will be researching about the core competencies for IT sector.

usAge of CompetenCy moDelling

Recruitment

Competency based interview are designed to find out the competencies and skills of the candidate. The interview has questions that are targeting specific skills and the answers of candidate will be compared with predetermined answers. It tells that past behaviours are the indicators of the future performance. In unstructured interviews questions that are asked are open ended and random. In competency-based interview each question targets specific skills and the questions are situation based. Interviewer can do analysis based on comprehensive answers and strive to render accurate results. Following are the benefits of competency-based interview.

Fig. 2

According to the research companies that use competencies can rate their staff effectively when it comes to quickly and effectively filling the positions. It can help in internal acquisition of talent and the internal employees are better able to compete for hiring the required candidate.



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Fig. 3

Training and Development

Competency based training and development provide framework for employees that can build specific skills and behaviour for required role. It is also cost efficient, productive and personalised. According to LinkedIn’s 2018 Workplace Learning Report

• 93% of the employees said that they will stay for longer period of time if company invest in their careers.

• 68% of employees prefer to learn at work.• 58% of employees prefer to learn by their own.

Employee Assessment Centre

Assessment Centre is most reliable for delivering right job to right employee. In this method various tasks are given to employee/employees and to succeed in that, necessary competencies are required which relates to the job. It is generally one day program which involves role play, presentation on given topic, Psychometric testing and case studies. Following is the framework how Assessment Centre works in the organization:

Fig. 4

Benefits of Assessment Centre

It provides the information about employee’s strength and weaknesses.• Comparison of employees is possible.• Allocation of right job to right person can increase productivity of both employee

and organization.• It is fair method to select employee for a job so no dissatisfaction will create.



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Performance Appraisal

Competencies are used in performance appraisal by describing skills, attribute and abilities that are important to be successful in particular job. It also helps in giving reward and recognition to the employee. HR manager measure employee’s on job attitude, qualities, behaviour and also mark defaults, it can help HR manager for appreciating and promoting employee.

Table 1

COMPETENCIES USAGE IN FIVE MAJOR IT COMPANIES

IBM GOOGLE TCS INFOSYS MICROSOFT

Collaborate Effectively

Being a good coach

Emotional intelligence

Complex problem solving

Self-development

Presenting with Purpose

Communicating and listening well

Interpersonal skills Critical thinking Self-confident

Interpersonal Skills Possessing insights into others (social awareness)

Resilience Creativity Intellectual horsepower

Delivering Quality Work with Agility

Empathy and support toward colleagues

Cross-cultural sensitization

People management

Integrity and trustworthiness

Solving Problems with Critical and Creative Thinking

Critical thinkingProblem solving

Time management Coordinating with others

Dealing with Ambiguity

Connecting complex ideas

Decision-making ability

Emotional intelligence

Creativity

Technical savviness Judgement and decision making

Conviction and courage

Acceptance of feedback to improve:

Service orientation Composure

Communication Negotiation Action oriented

Cognitive flexibility

FINDINGS

Method: Questionnaire

Sample size: 10

obJeCtives for QuestionnAire

• To check the awareness of competency modelling in IT Industry.

• To know the current trends of competencies required in IT Industry.

• To predict future competencies required in IT Industry.



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Fig. 5

Fig. 6

Fig. 7



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As we decided to make this data authentic, we asked 10 Senior Level Managers of different IT companies to fill our Questionnaire. From the above responses we can infer that few companies are practicing and half of the managers are aware about Competency Modelling but they are not practicing in their organization. IT companies use Competency Modelling in Training and development the most and then in recruitment process. Slowly Managers are knowing the importance of Competency Modelling in Recruitment as a wrong employee can is the big loss of time, money, energy and productivity in an organization. In IT industry recruiters focuses more on the technical knowledge of the candidate and not the other competencies. Even tough time and again many authors and HR experts such as Prof.TV Rao have stated the importance of competency modelling in an organization still in India we can see that organizations and HR managers are yet to incorporate the competency model as mandatory process.

Fig. 8

In the time of pandemic where there’s no certainty of anything, problem solving is one competency that most of the HR Managers are looking for. The above question depicts that, in current times the pandemic that brought whole world to a standstill with not one or two but a whole lot of problems, problem solving skill is a must. Along comes, the interpersonal skills, these too are very important as now people are all working remotely and no face-to-face communication is there, it often gets difficult for one person to understand what the other wants to convey, hence at times like these as per these managers, interpersonal skills is one important competency to have. Similarly, an employee should always be willing to learn in order to achieve success, both for themself and the organization, hence, self-development is really important. Managers also think that in current times skills like people management, critical thinking, flexibility, time management, decision making are all important.



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Fig. 9

The Future of IT Industry looks like TCS Model that is:

• Time Management

• Creativity

• Self-Development

TCS Model suggests that in future these 3 Core Competencies are required for IT professionals to succeed in the IT Industry. Form the above data we can clearly identify that time management and creativity followed by self-development are the competencies which will be looked for in future. furthermore, if we analyze previous figure, it too has self- development. Through this we can conclude that IT industry is emphasizing highly on self-development competency. It is natural choice pertaining to that sector as IT industry is highly technology driven. In order to provide best services organizations, need employees who are best updated with the current market trend

To give an example- if we talk about coders in IT industry, 5 years ago knowing JAVA with combination of python was good enough for an average coder in any industry. If we see now even an average coder of small to midsized organization is required to have knowledge of JIRA, JAVA, PYTHON in addition to working on online coding platforms.

Apart from that we can also see rise in competency of technical savviness which also very obvious as we are moving more and more towards digitalization.

CONCLUSION Service sectors like IT industries rely heavily on the performance and skillset of its different taskforces, the scope of HR in employee heavy industries grows tremendously. IT industry demands knowledge and skillset from the very functional



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level. Growth of the company is directly correlated with the performance of its employees. So, to enhance the quality of its taskforce companies has started to define their ideal candidate and hire, train, assess and appraise potential employees in a which allows them to match both sides. With the research and survey done in this report, we can safely conclude that even growing businesses in IT industry is starting to believe in competency modelling. From the information collected in our survey of 10 managers of different companies, all of them knew or practised the concept of competency modelling. In our attended workshop about competency mapping and modelling, we were told that recruiting is the area in which competency modelling is majorly used because training and developing employees according to their competency’s costed lot of resources, so the approach was recruiting the perfect candidate. But through our research, we can fairly conclude a significant shift from recruiting to T &D, this trend is now followed even in midsized IT companies. One more interesting input drawn from the survey was future competencies that are emerging in the wake of industry 4.0. Hence to be able to survive in this competitive world, competency modelling is your go to.

REFERENCES[1] Ennis, M.R. (2008). Competency models: a review of the literature and the role of the

employment and training administration (ETA) (pp. 1-25). Office of Policy Development and Research, Employment and Training Administration, US Department of Labor.

[2] Tripathi, K., & Agrawal, M. (2014). Competency based management in organizational. Global Journal of Finance and Management, 6(4), 349–356.

[3] Websites-https://www.valamis.com/hub/competency-model#:~:text=A%20competency%20model%20is%20a,to%20perform%20their%20job%20successfully.

[4] https://www.centranum.com/resources/competency-management/what-is-a-competency-model/

[5] https://trainingindustry.com/wiki/professional-development/competency-model/

[6] https://www.careeronestop.org/competencymodel/getstarted/userguide_competency.aspx

[7] https://www.ibm.com/blogs/ibm-training/ibm-releases-new-courses-the-top-five-soft-skills-you-need-to-succeed-in-business/

[8] https://ceoworld.biz/2019/08/08/10-skills-you-need-to-have-to-get-job-at-google

[9] https://www.tcs.com/blogs/life-skills-develop-improve-career-prospects

[10] https://www.infosys.com/insights/human-potential/documents/human-skills-mandate2020.pdf

[11] https://sourcesofinsight.com/microsoft-competencies-for-skilled-effectiveness/

[12] https://www.hr.upenn.edu/for-managers/performance-management/competencies

[13] https://asystems.as/tools-services/assessment-center/


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9

HRM and Organizational Performance: Does it Really Contribute?

Hemaprabha PurohitMahila PG Mahavidyalaya, Jodhpur

ABSTRACT

HRM has gained much attention in the past few decades. The emergence of research community that established support for the relationship between HRM and organizational performance has brought about a revolution in the area. This led to a spread of wakefulness amongst the corporate leaders, and a growing number of organizations established a dedicated HR department and developed HRM systems. However, a lot of mystification hovers over the HRM-OP relationship as yet. A faction of researchers have questioned the existence of the linkage, and doubted if it really exists. The paper is an attempt to explore the HRM-OP linkage, and throw light on the concerns, based on the literature available in the area. Also, suggestions have been extended on the same.

Keywords: HRM, Organizational Performance, HR Practices, Organizational Effectiveness, HRM-OP Linkage

INTRODUCTIONAfter being under estimated for a longer period, HR started being accepted as a key factor for gaining competitive advantage (Huselid, 1995) and enhancing firm performance (Barney & Wright, 1998). Many studies have highlighted the inevitability of HR’s strategic alignment with business, and its criticality in terms of influencing the overall business (Khandelwal, 2005). Consequently, the impact that HR has on the organizations became an area, which attracted much interest of scholars and practitioners (Algaraja, 2012).

METHODOLOGY The paper is an attempt to contribute to the literature available on the HRM-OP linkage. On the basis of literature available in the area, various perspectives regarding the linkage under study have been discussed, and also the concerns and probable reasons for the same have been stated. Further, suggestions have been extended, which might prove beneficial for practitioners in approaching the HRM practices being designed by them in a different manner, so that they can make the most out of their HRM system, and the fat investments made by the top management do not prove unproductive.



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BACKGROUND As the years have passed by, it has been widely accepted both by the academia and the corporate fraternity, that HR function plays an instrumental role in firm performance (Barney & Wright, 1998). Prior researches have established that, a pool of human capital can be developed to contribute towards the firm goals through human resource practices (Schuler & Jackson, 1987; Schuler & MacMillan, 1984; Wright & Snell, 1991).

It has been argued that employees can be encouraged to become more oriented towards firm’s interest by developing reward systems, communication systems, training programs, and socialisation systems in organizations (Schuler & MacMillan, 1984; Schuler, 1992). Wright, McMahan, and McWilliams (1994) assert that HR practices moderate the relationship between the human capital pool and firm effectiveness, which means that the pool is only effective when it is blended with right kind of HR practices, which can help by bringing out the required employee behavior. Thus, achieving a right mix of HR practices is a necessary condition to attain maximal effectiveness of the human capital pool. They proposed that HR practices aid in developing human resources as a source of sustained competitive advantage through creating and developing a high quality human capital pool.

The HRM literature embraces quality studies which have thrown light upon the HRM-Performance linkage. Dyer and Reeves (1995) in their study found that bundles of HR activities are to be considered superior to the individual HR activities in enhancing productivity. Huselid (1995) reported that the investments made in high performance work practices (like recruiting efforts, training, promotion criteria, personnel selection, performance appraisal, incentive compensation, job design, grievance procedures, information sharing, attitude assessment and labor-management participation) are related to low employee turnover and, greater productivity and corporate financial performance. Delaney and Huselid (1996) in their study reported a positive relationship between HRM practices and firm performance. Patterson, West, Lawthom, and Nickell (1997) pointed out that, HRM practices are the major area on which the managers should work upon, if they intend to influence their organizational performance.

Paauwe and Richardson (1997) discussed a framework of HRM-performance relationship, where they discussed how HRM activities influence HRM outcomes (like employee satisfaction, commitment etc.), which influence the firm performance (like profit, productivity, product/service quality, customer satisfaction, etc.). Also, some HRM activities were considered to influence firm performance directly. Further, a possibility of reverse causality, that the firm performance itself influences the HRM practices was also exhibited. Paul and Anantharaman (2003) proposed a causal model of HRM-OP linkage; with employee competence, teamwork, organizational commitment, and customer orientation as intervening variables.

Lall (2007) explored the “black box” in his study, to explain how, when and to what extent do the HR practices affect employee performances. It was argued



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that organizations use many HRM practices (motivating the employees, result oriented appraisal, career management system, organizational culture, awards and rewards) simultaneously, but in order to achieve a ‘strategic positioning’ they have to combine HRM practices in a way that produces a synergistic effect. Singh, Singh, and Bhattacharya (2008) put forward that good HR practices contribute to high performance, and thus organizations can benefit by introducing best HR practices for enhancing organizational performance. Ayanda, Lawal, and Ben-Bernard (2014) in their study found support for HRM practices (selection, training, job description, performance appraisal system, compensation system career planning system and employee participation) having a positive impact on financial performance. Thus, it can be seen that a lot of studies can be found in the literature, which support direct and indirect relationship between HRM and organizational performance.

However, the research undertaken in the area has received a lot of criticism due to various methodological limitations (like number of respondents, their role in the organization, analysis and interpretation, ignorance of influencing variables, and possibility of reverse causality); lack of longitudinal studies, and evidence available for possible gains from HRM being offset by the costs related to it, which lowers down the credibility of the supporting literature available on a clear HRM-OP linkage (Paauwe & Boselie, 2005; Buller & McEvoy, 2012; Byremo, 2015) and has led to much confusion regarding the contribution of HRM towards firm performance.

DISCUSSION

The growing popularity of HRM brought about a major shift in how the HR was viewed earlier. The academic and corporate world witnessed how it evolved through the years that passed by, and gained the status of being a strategic contributor and also a source of sustainable competitive advantage.

Never the less, much perplexity hovers around its true contribution, which necessitates a deeper understanding in the area. There has been a lot of debate regarding if HRM actually contributes towards the organizational performance (Katou, 2017). The author is of the view that it is not the HRM-OP linkage that needs to be questioned. Whether the sample selected by the researcher is not a large one, or the respondents’ perspectives are captured at a particular point of time and not over a longer period of time, or varying criteria are used to capture their perspective and study their impact.; the linkage reported by the study cannot be disregarded, and such studies have only paved the path for further scholarly work to be undertaken in the area. What really matters is that a strong justification has been put forward, and some good statistical techniques have been used for analyzing the data collected for the study.

Nevertheless, it is true that many of the organizations are unable to capitalize on their human resource well, and often doubt the investments made for their people practices (Tharenou, Saks, & Moore, 2007). The probable reason behind this is that, their “HRM programs, practices, and policies have a simple operational focus of attracting, selecting, developing, retaining, and utilising employees for accomplishing specified tasks and jobs” (Lengnick-Hall & Lengnick-Hall, 2003, p.1).



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Also, simply having a HR department is not enough; HR professionals need to understand the theory behind HR practices leading to specific outcomes. An ‘effective implementation’ of a HRM system spells the difference between a successful or unsuccessful HRM system in an organization (Bowen & Ostroff, 2004; Khilji & Wang, 2006).

Right from the policy makers or the top management, to the middle management, to the front line staff, and the employees at an individual level, all need to understand the role that they need to play, and the vigor that effective HR practices can bring along, which will much benefit the entire organization. A better understanding on how the policies need to be framed and how those policies framed shall contribute to the firm performance is necessary. Further, ensuring effective implementation at different levels of organization, and spreading awareness in the organization on how the ignorance on the part of even small teams/groups can render the large investments made by the top management unproductive, is of much significance.

Thus, deeper insights on how individual HR practices and a system of integrated HR practices work and impact the overall organizational performance (Dyer & Reeves, 1995; Lall, 2007) need to be gained by the top management and communicated further to other organizational members.

In all, it can be safely concluded that, the HRM-OP linkage cannot be disregarded, and enough support can be found for the same in form of several studies (both theoretical and empirical) undertaken (Cooke, 2001; Datta, Gutherie, & Wright, 2003; Paul & Anantharaman, 2003; Bowen & Ostroff, 2004; Biswas, Srivastava, & Srivastava, 2007; Lall, 2007; Singh, Singh, & Bhattacharya, 2008; Katou, 2009; Subramony, 2009; Katou & Budhwar, 2010; Tiwari & Saxena, 2012; Quansah, 2013; Ayanda, Lawal, & Ben-Bernard, 2014; Schuler & Jackson, 2014; Trehan & Setia, 2014; Delery & Gupta, 2016; Ogunyomi & Bruming, 2016). The reason why in particular cases HRM is not found to contribute towards the firm performance needs to be probed into deeper by the organizations.

CONCLUSIONIn the contemporary scenario, organizations are witnessing a sea of changes and incessantly growing and adapting to such changes is the need of the hour (Markovic, 2008). It is only the ‘people’ of an organization who can help organizations match pace with the ever changing scenario, survive the turmoil, and gain an edge over others, now and in the years down the road.

A growing wakefulness regarding the significance of HRM practices has been seen in the past few decades. However, designing and implementing an effective HRM system is still a concern for many organizations. It is high time now that the organizations round the globe realize that merely the presence of a HR department, does not necessarily contribute towards enhancing the organizational performance. Ensuring an effective implementation of the HRM practices, by understanding how particular practices individually or in group shall contribute to organization-wide outcomes is what is required.



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REFERENCES [1] Alagaraja, M. (2012). HRD and HRM perspectives on organizational performance: A review of

literature. Human Resource Development Review, 12(2), 117–143.

[2] Ayanda, A.M., Lawal, O.R., & Ben-Bernard, P. (2014). Effects of human resource management practices on financial performance of banks. Transnational Journal of Science and Technology, 4(2). Retrieved from http://www.tjournal.org/tjst_april_2014/01.pdf?i=1.

[3] Barney, J.B. & Wright, P.M. (1998). On becoming a strategic partner: The role of human resources in gaining competitive advantage. Human Resource Management, 37(1), 31-46.

[4] Bowen, D.E., & Ostroff, C. (2004). Understanding HRM–firm performance linkages: The role of the “strength” of the HRM system. Academy of Management Review, 29 (2), 203-221.

[5] Buller, P.F. and McEvoy, G.M. (2012), “Strategy, human resource management and performance: Sharpening line on sight”, Human Resource Management Review, 22(1), 43-56.

[6] Byremo, C. (2015). Human resource management and organizationals performance: Does HRM lead to improved organizationals performance? (Master’s Thesis). Department of Sociology and Human Geography, University of Oslo. Retrieved from https://www.duo.uio.no/bitstream/handle/10852/49030/Cathrine-Byremo-2015---HRM-and-Organizationals-Performance--Does-HRM-lead-to-improved-organizationals-performance-.pdf?sequence=1&isAllowed=y.

[7] Delaney, J.T. & Huselid, M.A. (1996). The impact of human resource management practices on perceptions of organizational performance. The Academy of Management Journal, 39 (4), 949-969.

[8] Dyer, L., & Reeves, T. (1995). Human resource strategies and firm performance: what do we know, where do we need to go?. International Journal of Human Resource Management, 6(3), 657-667.

[9] Huselid, M.A. (1995). The impact of human resource management practises on turnover, productivity and corporate financial performance. Academy of Management Journal, 38 (3), 635-672.

[10] Katou, A.A. (2017). How does human resource management influence organizationals performance? An integrative approach-based analysis. International Journal of Productivity and Performance Management, 66(6), 797-821

[11] Khandelwal, A.K. (2005). Criticality of HR reforms for public sector banks in the new era. Economic and Political Weekly, 40(12), 1128-1135.

[12] Khilji, S.E., & Wang, X. (2006). ‘Intended ’and ‘implemented’ HRM: The missing linchpin in strategic human resource management research. The International Journal of Human Resource Management, 17(7), 1171-1189.

[13] Lall, M. (2007). The impact of human resources management planning on organizational performance. 8th International Conference in HRD Research and Practice. Oxford. Retrieved from https://www.ufhrd.co.uk/wordpress/wp-content/uploads/2008/06/lall-204-wp.pdf.

[14] Lengnick-Hall, M.L. & Lengnick-Hall, C.A. (2003). Human resource management in the knowledge economy: New challenges, new roles, new capabilities. Retrieved from https://www.bkconnection.com/static/Human_Resource_Management_In_The_Knowledge_Economy_EXCERPT.pdf.

[15] Markovic, M.R. (2008). Managing the organizational change and culture in the age of globalization. Journal of Business Economics and Management, 9(1), 3-11.

[16] Paauwe, J. & Boselie, P. (2005). HRM and performance: What next? Human Resource Management Journal, 15(4), 68–83.

[17] Paauwe, J. & Richardson, R. (1997). Introduction special issue on HRM and performance. The International Journal of Human Resource Management, 8(3), 257-262.



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[18] Paul, A.K. & Anantharaman, R.N. (2003). Impact of people management practices on organizationals performance. International Journal of Human Resource Management, 14, 1246-1266.

[19] Patterson, M.G., West, M.A., Lawthom, R., & Nickell, S. (1997). Impact of people management practices on business performance. London: Institute of Personnel and Development. pp. 1-23. Retrieved from http://www.dphu.org/uploads/attachements/books/books_4936_0.pdf.

[20] Schuler, R.S. & Jackson, S.E. (1987). Linking competitive strategies with human resource management practices. Academy of Management Executive, 1, 207-219.

[21] Schuler, R. (1992). Strategic human resource management: Linking the people with the strategic needs of the business. Organizational Dynamics, 21(1), 18-31.

[22] Schuler, R.S., & MacMillan, I. (1984). Gaining competitive advantage through human resource practices. Human Resource Management, 23, 241-256.

[23] Singh, S., Singh, K.N., & Bhattacharya, A. (2008). High performance organisations: Relationship with human resource policies and practices. Indian Journal of Industrial Relations, 43(4), 507-527.

[24] Tharenou, P., Saks, A.M., & Moore, C. (2007). A review and critique of research on training and organizational-level outcomes. Human Resource Management Review, 17(3), 251-273.

[25] Wright, P.M., McMahan, G.C., & McWilliams, A. (1994). Human resources and sustained competitive advantage: a resource-based perspective. International Journal of Human Resource Management, 5(2), 301-326.

[26] Wright, P.M. & Snell, S.A. (1991). Toward an integrative view of strategic human resource management. Human Resource Management Review, 1(3), 203-225.


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10

Employee Experience and Remote Working: Implications for the New Normal

Anvay Bhargava1, Shilpi Sharma2 and Vanya Sharma3

1,2,3Jaipuria Institute of Management, Jaipur

ABSTRACT

With the onset of COVID-19 pandemic, companies had to strategize for maintaining the employee productivity and organizational efficiency. Organizations under FMCG sector had to transact from traditional “Work from Office” (WFO) to modern “Work from Home” (WFH) setup. In developed countries this is not a new concept and employees transited to extended work from home mode, relatively fast. Hence, companies experienced a minimal impact on employee productivity during the pandemic. In Indian context, such a proposition was new and organizations faced a difficult time in ensuring a satisfactory employee experience during remote working. This research paper explores new methods for enhancing the employee experience during remote working. The main focus was given to minimizing stress and maximizing employee productivity by monitoring the three major triggers- Number of Distractions, Number of Interruptions and Free Time available to employees during WFH. This study would help in analyzing the employee experience in a WFH setup by better monitoring the trigger points as well as the source - whether from the employee end or the employer end. This understanding will help organizations to optimize the proportion of work from home and office in the coming times.

Keywords:Employee Experience, Remote Working, Productivity, Stress, Distractions

INTRODUCTIONIn the past few decades, the popularity of Work from Home culture has seen an upward trend owing to factors such as advancement in information technology and ever-increasing digitalization (Shamir & Salomon, 1985) (Baruch, 2000). But now it has become a necessity and need of the hour amidst this pandemic of COVID-19.

With the onset of the COVID-19 pandemic, companies had to strategize for maintaining employee productivity and organizational efficiency. Organizations had to transact from traditional “Work from Office” (WFO) to modern “Work from Home” (WFH) setup.

With a more flexible working schedule, unlike work from the office, employees’ autonomy in organizing their office work provided better accountability checks of their work resulting in more productive working hours (Bailyn, 1988). In addition,



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to calm working space at home, employees are less exposed to triggers which may hamper their productivity (Bélanger, 1999) (Bloom, 2015)

In developed countries, this is not a new concept, and employees transited to extended work from home mode, relatively fast. Hence, companies experienced a minimal impact on employee productivity during the pandemic. In the Indian context, such a proposition was new and organizations faced a difficult time in ensuring a satisfactory employee experience during remote working.

In this research paper, an attempt has been made to explore new methods for enhancing the employee experience during remote working. The main focus was given to minimizing stress and maximizing employee productivity by monitoring the three major triggers- Number of Distractions, Number of Interruptions, and Free Time available to employees during WFH. This study would help in analyzing the employee experience in a WFH setup by better monitoring the trigger points as well as the source - whether from the employee end or the employer end.

LITERATURE REVIEW

stress

Stress—an inevitable factor at the workplace—affects employees irrespective of their gender, seniority level or the type of employment. A research by (Michie, 2002) states that the non-availability of resources in a difficult situation leads to stress in an individual. Stress may affect the physical state along with psychological state of an individual. Thus, it is dependent on one’s capability to manage resources in demanding situations. Hence, some individuals are more likely to experience it more often than others; and in more situations.The employees experience stress mostly at the place of their job, regardless of their position, gender, seniority level or employment type. The factors at workplace which causes stress can be categorized in 2 major categories—Content of work & Context of work. (Michie, 2002) Other researchers have also categorized stressors in terms of being intrinsic or extrinsic in the job. The intrinsic stressors include long working hours, urgent work pressure, inadequate break times and work conditions. The extrinsic stressors include competition in the market, new technologies, one’s own problems related to self and family, country’s economy and culture. (Michie, 2002)In this research paper, based on reference from (Bhui, Dinos, Stansfeld, & White, 2012) we have used 4 types of stressors to identify the cause of stress experienced by the employees:

• Working conditions (Workload, Understaffed, Work-Life Balance, Physical Environment)

• Nature of Job (Handling clients, Uncertainty/ unpredictable situations, High expectations)

• Management Practices (Impractical expectations, poor support/ appreciation, unfair/ biased environment, lack of transparency & communication)

• Compensation related factors (pay, perks, inadequate increments, job stability)



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DistrACtions

According to the research by (Baron, Baron, & Miller, 1973) and (Glass & Singer, 1972) Distraction is a kind of manipulation where an individual’s priorities is affected and they ignore certain tasks. It is more of attention capacity getting affected.

The distinction between interruption and distraction is very blur. In this research paper, distraction is understood as some stimulus that affects concentration on current job, adversely (Speier, 1996). Interruption is understood as additional jobs putting pressure on available resources and increasing the impact of distractions.

Many factors can be the cause of distraction for employees while working, such as noise in the surroundings, anxiety or stress, unfair appraisal, and sudden changes in organizational policies. (Mark, Gonzalez, & Harris, 2005) states 2 sources of distractions – Internal and External. Internally generated distraction includes need to check messages for non-work related things/ Urge to respond to Pop-ups; while Externally generated includes Auditory, Environmental, Management, Organizational, Technological. This is the focus of this research as well.

interruptions

According to a research by (Speier, 1996), interruptions are those attentional distraction that make you do other activities beyond your own capacity or available resources. Thus it increases the impact of distractions.

Multiple reasons can cause interruptions while working such as answering a phone call, responding to messages instantly, or to address a colleague (WFO)/ family member (WFH). Regardless of the cause of interruption, (Allen, Guinn, & Horvitz, 1999) (McFarlane, 2002) have quoted four known strategies in their research for managing interruption and focusing on work, namely: immediate; scheduled; negotiated, and mediated strategy.

The immediate interruption strategy involves immediate response to the interruption by the user in circumstances that are critical and need immediate attention. The scheduled interruption strategy involves scheduling the interruption to a pre-arranged time slot without hampering the working schedule of the user. The negotiated interruption strategy gives the individual full authority on how to control and deal with the interruption according to his convenience/ preference. Here, the need to respond is first assessed and then the response time is negotiated based on the priority. The mediated interruption strategy involves dealing with undirected and unrequested interruptions by determining the way how it will reach to the user.

Several studies have been done in this area. The types of interruptions that were of interest in this research are taken from the study by (Sykes, 2011) and are like ringing of phone, updates of software on system or mobile, new mail pop ups, colleagues visiting by and miscellaneous distractions like a truck passing by, noise from AC, passers walking next to office, sound of doors or windows, crockery, surroundings, etc.



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free time/ personAl time

In the literature around free time/ personal time, studies have quoted free/ personal time as a coping resource for the stressors (Chun, Lee, Kim, & Heo, 2012) (Nimrod, Kleiber, & Berdychevsky, 2012) and have used numerous conceptual models to try to explain how people use free time/ personal as a mechanism to cope up with stress in general. (Iso-Ahola & Park, 1996) (Iwasaki, 2003)

In other words, people are more likely to feel stressed if they don’t get enough free time to themselves in order to clear their mind and relax for a while. In this research paper, we have incorporated this variable as a trigger for stress and have tried to determine the range of free time/ personal time available to employees in two different setups – WFO & WFH

perCeiveD employee proDuCtivity

Literature on this variable is quite low and just a few research papers have been found and explored on perceived employee productivity. Some studies (Bailyn, 1988); (Olson & H., 1989); (DuBrin, 1991); (Bélanger, 1999) analyzed the relation between work from home and employees’ perceived productivity and found that it is positively correlated, based on data collected by survey. Other studies such as (Dutcher, 2012) further explored this relationship using lab/ field experiments. Dutcher, his research, considered the nature of the job as creative/boring tasks (Dutcher, 2012). He concluded that when individuals are doing creative tasks as home, their productivity increases. But for boring task or repetitive jobs, there is a negative influence on productivity, while working from home. These studies found that working from home has a significant positive effect on individual employees’ productivity.

In this research paper, we have tried to measure the perceived employee productivity in both work from office and work from home setup using a defined measurement scale in terms of percentage.

METHODOLOGY

Exploratory research was undertaken where in structured questionnaire was administered to 70 employees who experienced work from home during COVID times.

DATA ANALYSIS

This section presents the descriptive analysis of the data collected and analyzed according to the different sections namely – Demographics, Comparative analysis of WFO and WFH, Possible Interventions.

Out of 70 respondents, 36 were male which accounted for 51% of the total respondents while 34 were female which accounted for the rest 49%. Majority of the respondents belonged to the age group below 25 years, followed by the respondents



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in the age group 26-35 years, followed by the respondents in the age bracket of 36-45 years and the minority belonged to the age group above 45 years of age.

Fig. 1 Fig. 2

Based on the department of respondents, it was observed that 25 respondents

belonged to the Sales & Marketing department, 14 respondents belonged to the

Human Resources department, 12 respondents belonged to the IT/ Business

Analytics department, 10 respondents belonged to the Operations department while

9 respondents belonged to the Finance Department. (Fig. 3)

05

10152025

9 14 12 1025

DEPARTMENT

E N T R Y L E V E L

M I D D L E L E V E L

S E N I O R L E V E L

22

38

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SENIORITY LEVEL

Figure 3 Figure 4 Fig. 3

05

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E N T R Y L E V E L

M I D D L E L E V E L

S E N I O R L E V E L

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SENIORIT Y LEVEL


Majority of the respondents, i.e. 32 out of 70 respondents were in the Middle level

management of their organization, followed by 22 respondents in the entry level

positions while only 10 of them were in the senior level management. (Fig. 4)

It could be analyzed from Fig. 5 that – on an average, working hours have increased

by approximately 1 hour 38 minutes after the transition from WFO to WFH, while

the break duration has gone up by approximately 48 minutes on an average. (Fig. 6)



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77.5

88.5

99.510

Work from Office Work from Home

8.23

9.87

Working hours/ day

0.00

0.50

1.00

1.50

2.00


1.202.00

Break duration/ day


77.5

88.5

99.510


8.23

9.87

Working hours/ day

0.00

0.50

1.00

1.50

2.00


1.202.00

Break duration/ day


A Likert scale on 1-5, was used to capture the likelihood of certain triggers for the respondents- Causes of stress, Source of interruption, Source of Distraction.

As analyzed from fig. 7, an increment in the stress level can be observed as on an average, the rating for the triggers of stress – namely Working conditions (Workload, Understaffed, Work-Life Balance, Physical Environment); Nature of Job (Handling clients, Uncertainty/ unpredictable situations, High expectations); Management Practices (Impractical expectations, lack of support/ appreciation, unfair/ biased environment, lack of transparency & communication); Compensatory factors/ problems (pay, perks, inadequate increment in salary, job security) – have increased very little.

Fig. 7

From Fig. 8, it was observed that the major source of interruption is colleagues in the work from office scenario which has significantly reduced in the work from home scenario. Interestingly, the source of interruption – calls – turned out to be a major source of interruption in the work from home setup, unlike in work from office scenario when it was not a major concern.



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Fig 8.

The frequency of the triggers namely – emails, calls, messages – have increased after the shift from work from office to work from home setup, while the frequency of another trigger – colleagues – have decreased. (Fig. 9) As evident from fig. 8 as well, the influence of this trigger has significantly reduced in the work from home setup leading to lesser impact on stress levels.

Fig. 9

The length/ duration of the interruptions namely – emails, calls, messages – have increased after the shift from work from office to work from home setup, while the length/ duration of another source of interruption– colleagues – have decreased. (Fig. 10)



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Fig. 10

As evident from fig. 11, overall ratings for the sources of distraction – Internally generated – which includes Urge to check messages/ Urge to Surf the net for non-work related things/ Urge to respond to Pop-ups; or Externally generated – which includes Auditory, Environmental, Management, Organizational, Technological. – have increased for work from home setup as employees were facing a lot of uncertainty and had to survive this unprecedented situation.

Fig. 11

As evident from Fig. 12, on an average, the perceived employee productivity has decreased by 5% with the transition to work from home. The employees perceived that they are 26% productive on an average per day while they were working from



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office. This figure drastically dropped to 21% when they were working from home as they were not attuned to the scenario.

Fig. 12

As per fig. 13, it can be analyzed that the highest rated intervention to reduce stress and maintain productivity was Organizational- Working Culture (Flexibility; balanced working hours; Fixed days off; well-planned shifts), followed by Organizational- Team Culture (Space for discussion; Dialogue group; Notice board) as well as Organizational- Management practices (supportive, approachable, appreciative; communicative; frequent business/ staff meetings; supervision; 2- way feedback); and eventually by Individual- Psychological (Intranet/ Internet Counseling, 1-1 therapy, complementary therapy, helpline/ telephone counseling).

Fig. 13



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CONCLUSIONWith the intent to analyze the employee experience in a work from home setup for the FMCG industry specifically, this research paper presents the following principle findings.

The stress level of employees has increased due to this abrupt transition. It was observed that now the factors of working conditions – work-life balance, work load, physical environment; Financial factors/ problems - pay/ benefits, lack of appreciation in salary, job security – triggers the stress level more than earlier. Respondents also feel that there is high expectations from the job and some extent of unpredictability as well.

One of the reasons for an increase in stress level was an increase in the working hours for the employees. There was a thin boundary between work and home/ personal space. On an average, the working hours increased by 1 hour 38 minutes while the average break time/ duration increased by approximately 48 minutes.

The intensity of the sources of distraction – internally generated (Urge to Surf the net, Urge to respond to Pop-ups) as well as externally generated (One minute requests; Telephone rings; Environmental) have increased. Even though the increase is minimal, in a work from office setup, the source of distraction was internally generated while in a work from home setup, it was externally generated.

In the work from office scenario, colleagues were the major source of interruption while in the work from home setup, it has become the least rated source of interruption and calls have become the major source of interruption. The frequency and length/duration of this source have also increased the most.

The perceived employee productivity has reduced by 5% assuming that the reason is the increase in stress levels of the employees.

This understanding will help organizations to optimize the proportion of work from home and office in the coming times.

REFERENCES[1] Allen, Guinn, C.I. & Horvitz, E. (1999). Mixed-initiative interaction. IEEE Intelligent Systems,

14(5), 14–23.

[2] Bailyn, L. (1988). Freeing work from the constraints of location and time. New Technology, Work and Employment, 3(2), 143-152.

[3] Baron, R., Baron, P. & Miller, N. (1973). The relation between distraction and persuasion. Psychological Bulletin, 80, 310-23.

[4] Baruch, Y. (2000). Teleworking: Benefits and pitfalls as perceived by professionals and managers. New Technology, Work and Employment, 15(1), 34-49.

[5] Bélanger, F. (1999). Workers’ propensity to telecommute: An empirical study. Information and Management, 35(3), 139-153.

[6] Bhui, K., Dinos, S., Stansfeld, S., & White, P. (2012). A synthesis of the evidence for managing stress at work: a review of the reviews reporting on anxiety, depression, and absenteeism. J Environ Public Health, 1-21.



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[7] Bloom, N.J. (2015). Does working from home work? Evidence from a Chinese experiment. Quarterly Journal of Economics, 130(1), 165-218.

[8] Chun, S., Lee, Y., Kim, B., & Heo, J. (2012). The contribution of leisure participation and leisure satisfaction to stress-related growth. Leisure Sciences, 34, 436–449.

[9] DuBrin, A.J. (1991). Comparison of the job satisfaction and productivity of telecommuters versus in-house employees: A research note on work in progress. Psychological Reports, 68(3c), 1223-1234.

[10] Dutcher, E.G. (2012). The effects of telecommuting on productivity: An experimental examination. The role of dull and creative tasks. Journal of Economic Behavior and Organization, 84(1), 355-363.

[11] Glass, D., & Singer, J. (1972). Urban Stress. Experiments on Noise and Social Stressors.

[12] Iso-Ahola, S., & Park, C. (1996). Leisure-related social support and self-determination as buffers of stress-illness relationship. Journal of Leisure Research, 28, 169–187.

[13] Iwasaki, Y. (2003). Roles of leisure in coping with stress among university students: A repeated-assessment field study. Anxiety, Stress and Coping, 16, 31–57.

[14] Mark, G., Gonzalez, V., & Harris, J. (2005). No task left behind? Examining the nature of fragmented work”, paper presented at Conference on Human Factors in Computing Systems.

[15] McFarlane, D.C. (2002). Comparison of four primary methods for coordinating the interruption of people. Human–Computer Interaction, 17, 63–139.

[16] Michie, S. (2002). Causes and Management of Stress at Work. An international peer-reviewed journal in all aspects of occupational & environmental medicine, 59(1), 67-72.

[17] Nimrod, G., Kleiber, D., & Berdychevsky, L. (2012). Leisure in coping with depression. Journal of Leisure Research, 44, 419–449.

[18] Olson, & H.M. (1989). Work at home for computer professionals: Current attitudes and future prospects. ACM Transactions on Information Systems (TOIS), 7(4), 317-338.

[19] Shamir, B., & Salomon, I. (1985). Work-at-home and the quality of working life. Academy of Management Review, 10(3), 455-464.

[20] Speier, C. (1996). The Effects of Task Interruption and Information Presentation on Individual Decision-making.

[21] Sykes, E.R. (2011). Interruptions in the workplace: A case study to reduce their effects. International Journal of Information Management, 31(4), 385–394.


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11

Exploring the Impact of Individual, Interpersonal and Contextual Factors

Influencing Employee Innovative Behavior

Saji P.A.Alliance University Bangalore, India

ABSTRACT

Although both scientists and practitioners emphasize the importance of employees innovative behavior (EIB) for organizational success, this paper develops a model of employee innovative behavior abstracting it as distinct from innovation outputs and as a multi-faceted behavior rather than a modest count of ‘innovative acts’ by employees. It understands individual employee innovative behaviors as a foundation for innovation initiatives which tend to depend heavily on employee’s human capital and behavior at work as key inputs in the value creation process. Employee innovative behavior was supported as comprising of idea generation, idea dissemination and idea implementation that is embedded in and influenced by Individual, Interpersonal and contextual factors. Building from a review of existing employee innovative behavior literature and theoretical considerations we develop a model with the factors influencing the employee innovative behavior. Further to explore employee innovative work behavior and the social political perspective that moderates, we developed a study model. In this model we consider two conditions one ‘dissatisfaction with status quo’ and ‘innovativeness as a job requirement.’ We wish to explore the four combinations of the above variables how the innovative behaviors of employees change according to the proposed model

We further hypothesize that employee innovative work behavior is related to the three dimensions of self-efficacy that is creative self-efficacy, persuasive self-efficacy and change self-efficacy. We also hypothesize innovative work behavior is related to the intrinsic interest of the employee.

Keywords:Idea Generation, Employee Innovative Behavior, Self-efficacy, Intrinsic Interest

INNOVATION

The importance of innovation for organizational effectiveness is widely accepted (e.g., Janssen, Van DeVliert, & West, 2004; Van de Ven, 1986; Woodman,Sawyer, & Griffin, 1993). Employee innovative behavior as developing, adopting, and implementing innovative ideas for products and processes is an important advantage that enables an organization to succeed in a vibrant business environment (Kanter, 1983; West &



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Farr, 1990a). A variety of aspects have been studied as imperative antecedents to individuals’ innovation, such as organization culture and climate (e.g., Scott & Bruce, 1994), relationship with their supervisors (e.g., Janssen & Van Yperen, 2004), job characteristics (e.g., Oldham & Cummings, 1996), social/group context (e.g., Munton & West, 1995), and individual differences (e.g., Bunce &West, 1995). Innovation theory has repeatedly stressed that innovation is broader than only creativity and includes the implementation of ideas (e.g., King & Anderson, 2002). Following Farr and Ford (1990) organizations today strive for high degrees of not only productivity and service excellence but also innovation (Greve & Taylor, 2000; Han, Kim, & Srivastava, 1998). Researchers have thus increasingly examined both the factors that promote idea generation and those that encourage idea dissemination and implementation (Axtell et al., 2000; Ng, Feldman, & Lam, 2010; Yuan & Woodman, 2010). Innovative behavior has also become a core component of employee performance evaluations (Gong, Huang, & Farh, 2009; Welbourne, Johnson, & Erez, 1998) and is thus an important construct that deserves more attention in its own right. Despite the importance of innovative behavior, it is not necessarily easy to promote it in the workplace. Employees may believe that their ideas are not important , will not be well acknowledged by others, and/or cannot be effectively implemented in practice (Baer, 2012). To engage in innovative behavior, employees must possess a strong sense of agency (a desire to intentionally make things happen through their own actions; Bandura, 2001). Although research on employee creativity has shown that stronger beliefs in one’s ability to generate ideas are associated with greater creativity (Gong et al., 2009; Tierney & Farmer, 2002),

EMPLOYEE INNOVATIVE BEHAVIOR Most literature treats EIB as a single construct, ignoring its multidimensionality ‘and its impact with the perception of employee towards management on these dimensions. This would be essential to explain how to encourage employees in organizations to improve their innovative behaviors and performance. Innovation is pertinent for the sustainment and survival of businesses. Employees are an important part of this survival as they play a critical role in developing new goods and services (Waheed, Abbas, & Malik, 2018). Additionally, Waheed et al. (2018) pointed out that employee innovative attitude and behavior significantly affects organizational performance. The researchers further argued that for an organization’s innovation to grow, employees must have a positive attitude towards organizational transformation and must adjust their behaviors to accommodate new innovations. The innovation within a firm depends on the willingness of employees to adopt innovative behaviors. Also, their perceptions regarding job satisfaction may impact on their innovative behaviors (Tsai & Yen, 2018). Therefore, the aim of the study is to explore the multi-faceted model for employee innovative behavior and the factors that affect their innovative performance. And further to explore the two conditions ‘innovativeness as a job requirement ‘and ‘dissatisfaction with status quo’ with a model with self-efficacy and intrinsic interest as independent variables and employee innovative behavior as dependent variable.


Exploring the Impact of Individual, Interpersonal and Contextual Factors Influencing Employee Innovative Behavior

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CONCEPTUAL MODEL/ FRAMEWORK FOR THE FACTORS INFLUENCING EIB

Employees can make a substantial contribution to organizational innovation through the generation of new ideas, sharing ideas with colleagues or supervisors, spreading the innovation to the entire organization, implementing the ideas themselves so that other people can follow, and persevere towards the set goals (Jain, 2015). Based on the framework, the factors that determines employee innovative behavior includes individual, interpersonal, and contextual factors. Individual factors comprise psychological capital and psychological empowerment. Interpersonal factors include transformational leadership and leader-member exchange (LMX) and social networks with knowledge sharing. The contextual factors comprise of job context and organizational climate (Jain, 2015). The framework is demonstrated in the figure below.

Fig.1: A Conceptual Framework for Employee Innovative Behavior

Source: Jain (2015)

inDiviDuAl fACtors

Individual factors such as self-efficacy, intrinsic interest, or psychological capital of the employees to decide the outcomes of incremental innovation are vital in the innovation performance of employees in an organization. Psychological capital entails having self-efficacy or confidence to successfully tackle challenging issues and optimism or making a positive attribution towards current and future success. It also entails persevering with the aim of reaching a particular goal and surpassing challenges and adversities to achieve success. Self-efficacy is the belief that one can organize and implement strategies required to achieve a particular outcome.

Psychological capital, self-efficacy, cognitive ability, positivism, and self-leadership are associated with innovative employee behavior (Jain, 2015) Similarly, dissatisfaction is an important individual attitude that makes people aware of the need to change



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(Farr & Ford 1990) and the value of introducing latest ideas .Dissatisfaction with the status quo is defined here as the employee’s dissatisfaction with the current performance condition of his work unit or organization.

interpersonAl AspeCts

Positive Impression management is designed to improve an employee’s social image; it is triggered by self-enhancing intentions activated by perceived opportunities for creating promising impressions on others (Arkin,1981; Schlenker, 1980) An employee may suggest new ideas to a supervisor in order to appear competent and conscientious. An employee may engross in innovative behavior as a deliberate effort to advance their image. Defensive impression management is intended to protect an individual’s established social image; It is triggered by adverse affective states (e.g., embarrassment, shame) (Arkin, 1981; Schlenker, 1980)

Potential image risks will restrain employee innovativeness. An employee may pick to “play it safe” and evade “rock the boat” innovative behaviors in order to look socially apposite and to prevent undesirable social evaluations. Interpersonal factors include the exchange between leaders and members, transformational leaders, knowledge sharing, and social networking. Transformational leadership is essential in enhancing strategies for getting things done and testing for new ideas using novel ways (Jain, 2015). Zhou and Velamuri (2018) acknowledged that leadership style, supervisory behavior, and leader-subordinate relationship are major motivators of employee innovative behavior. Transformational leadership has been identified as a facilitator of innovation since such leaders demonstrate idealized positive influence and inspirational motivation towards their employees (Zhou & Velamuri, 2018). Also, the leader-member exchange entails the relationships between leaders and their followers, satisfaction levels regarding relationships among co-workers, the level of job engagement, and the quality of relationships. Social networks enhance knowledge sharing, hence affecting the individual behaviors of employees thereby promoting innovative behavior (Jain, 2015). Zhou and Velamuri (2018) also cited that employees who exercise good relationships with their supervisors are more confident and tend to practice innovative behavior. This is because in most cases, employees receive instructions from their supervisors and expect them to be their mentors. Additionally, good interpersonal relations and considerable trust levels within a group ensure that employees feel safe to air their ideas openly and encourage knowledge sharing (Zhou & Velamuri, 2018). (Last Name, Year)

ContextuAl fACtors

Contextual factors include job characteristics like ‘innovativeness as a job requirement ‘and organizational climate. The job context is an essential determinant of employee innovative behavior. The two major job characteristics including job autonomy and job complexity. Job complexity is associated with the challenges and requirements associated with a job. When employees are involved in complex jobs, they are likely to the challenges positively and become involved, interested, curious, and satisfied with their job. They may adopt innovative behavior (Jain, 2015).



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Job autonomy can be described as the extent to which workers are allowed to perform their tasks with little or no close supervision. In situations where employees are allowed to exercise freedom in performing their tasks and making decisions, they are more likely to practice innovative behavior. Autonomy in the workplace encourages independent thinking, information sharing, and the emergence of new strategies to address challenges (Jain, 2015). Zhou and Velamuri (2018) cited that rewarding jobs encourage workers to become more innovative. Organizational climate is also an important predictor of employee innovative behavior. A friendly organizational climate that encourages innovation is important in influencing the attitudes and orientation of the organizational members towards innovation. Climate refers to the signs that members receive regarding the behavioral and potential behavioral outcomes that an organization expects of them (Jain. 2015). Zhou and Velamuri (2018) explained that job characteristics significantly influence employees’ innovative behavior. Basically, more challenging tasks that are characterized by a wide range of responsibilities play an influential role in encouraging creativity as employees strive to look for alternative options to find solutions to challenging occurrences.

Considering the study from literature we propose the following model to explore employee innovative work behavior and the social political perspective that moderates it. In this model we consider two conditions one ‘Dissatisfaction with status quo’ and ‘Innovativeness as a job requirement’. I wish to explore the four combinations of the above variables how the innovative behaviors of employees vary according to the proposed model we further hypothesize that employee innovative work behavior is related to the three dimensions of self-efficacy, that is creative self-efficacy, persuasive self-efficacy and change self-efficacy. We hypothesize innovative work behavior is related to the intrinsic interest of the employee.

the moDel

Fig. 2



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ConDitions for stuDy

Table 1

Innovativeness as a Job Requirement

Dissatisfaction with the status quo

Yes Yes Yes No

No Yes No No

Creative Self-efficacy

Social-cognitive theory would suggest that individuals who experience growth in creative self-efficacy, which is the self-view that one has the ability to produce novel ideas. (Tierney & Farmer, 2002), are increasingly likely to engage in idea-generation behavior and persist in the face of setbacks (Gist & Mitchel, 1992; Sadri & Robertson, 1993).

Persuasion Self-efficacy

Persuasion, self-efficacy is the extent to which employees are confident in their ability to convince others to accept and adopt their (or others) new ideas. The aim of this persuasion process is to increase others’ acceptance of an idea (Jaccard, 181). Persuasion that involves the use of arguments or evidence in favor of an issue has been successful at changing the attitudes of intended targets (Greenwald, 1965; Staub, 1972)

Change Self-efficacy

In the process of implementing novel ideas (such as experimenting with new work method), innovators may encounter many ambiguous situations that create discomfort and distress (Janssen 2004) Change self-efficacy refers to an individual’s perceived ability to handle change in the workplace and to function well on the job despite the demand of that change (Wanberg & Banas, 2000).

Intrinsic Interest

Engaging in innovative acts in a workplace brings benefits and costs for employees beyond a sense of intrinsic enjoyment (Janssen,2003; Janssen et al 2004) .One pertinent psychological aspect suggested by previous readings is an individual’s intrinsic interest in his or her assignment, which would positively affect individual creativity (Amabile ,1996; Woodman et al., 1993).

Social Expected Image Gains

Assertive Impression management is designed to improve an individual’s social image; it is triggered by self-enhancing motives activated by perceived opportunities for creating favorable impressions on others (Arkin,1981; Schlenker ,1980).An employee may advocate new ideas to a supervisor in order to appear competent and meticulous. An employee may engage in innovative behavior as a deliberate effort to improve their image



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Social Expected Image Risk

Defensive impression management is envisioned to protect an individual’s established social image; It is activated by negative affective states (e.g., embarrassment, shame) (Arkin, 1981; Schlenker, 1980) Potential image risks will constrain employee innovativeness.An employee may pick to “play it safe” and avoid “rock the boat” innovative behaviors to look socially appropriate and to prevent negative social assessments.

Theoretical Implications

In this study we explored the multi dimensionality of the concept Employee Innovative Behavior like idea generation, idea dissemination and idea implementation as different dimensions of EIB. Simply focusing on any one of the three dimension and neglecting the other two is likely to yield low returns on human resource investment in this area (Scott & Bruce, 1994). We found from literature that there are individual, interpersonal and contextual factors that directly or indirectly influence the EIB and developed a conceptual framework for EIB with the factors influencing EIB. This study proposes to examine how the social political perspectives of expected image gains and expected image risks moderate the outcome of employees in their innovative behavior. We are examining two latent variables, self-efficacy and intrinsic interest and their dimensions, how these variables affect the different dimensions of employee innovative behavior. Our study suggests that using a single perspective to understand psychological considerations behind innovative behavior does not capture full pictures. Employees are more innovative when they anticipated behavior would benefit their work by supporting an efficiency-oriented perspective. At the same time, the concern for potential image risks and unfavorable social impressions negatively affects innovativeness, suggesting a significant impact of social-political considerations on employee innovation.

Practical Implications

One of the reasons why employees do not innovate is that they do not believe doing so will benefit their work. It is important to provide positive social recognition for innovative employees and increase the extent of employees’ self-views as innovative. Companies with histories of successful performance need to take steps to break psychological comfort with the status quo and sensitize employees to opportunities for further improvement. These findings highlight the importance of managerial cognizance of dynamic relationships between innovative behavior and other variables.

REFERENCES[1] Liot Eldor (2017). The relationship between perceptions of learning climate and innovative

behavior and proficiency. Emerald Publishing Limited.

[2] Susanne G Scott and Reginald A Bruce (1994). Determinants of Innovative Behavior: A Path Model of Individual Innovation in the Workplace. Academy of Management

[3] Carsten Christoph Schermuly, Berolt Meyer,and Lando Dammer (2013). Leader – Member Exchange and Innovative Behavior. The Mediating Role of Psychological Empowerment . Journel of Personal Psychology 2013 ;Vol.12(3):132-142



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[4] Cheng-Fei Tsai & Yu-Fang Yen (2018). Moderating effect of employee perception of responsible downsizing on job satisfaction and innovation commitment . The international Journal of Human Resource Management.

[5] Manjari Singh and Anita Sarkar (2012). The Relationship Between Psychological Empowerment and Innovative Behavior. Journal of Personal Psychology Vol.11(3):127-137.

[6] Wenqian Zhou and Vivek K. Velamurai (2018). Key contextual success factors for employee innovative behavior: A study in a foreign manufacturing subsidiary in China.

[7] Congent Business & Management, 5:141770.

[8] Feiroung Yuan & Richard W, Woodman (2010). Innovative behavior in the workplace: The role of performance and image outcome expectations. Academy of management journal.

[9] Ravindra Jain, R. (2015). Employee Innovative behavior: A conceptual framework. Indian Journal of Industrial Relations, 51(1), 1–16. Retrieved from https://www.jstor.org/stable/43974534.

[10] Rebeka, E., & Indradevi, R. (2015). A study on perception of employees during change in an organization. Mediterranean Journal of Social Sciences, 6(1), 72–79.

[11] Thomas W.H.Ng, Within Individual Increases in Innovative Behavior and Creative, Persuation, and Change Self – Efficacy Over Time: A social – Cognitive Theory Perspective.

[12] Jeroen P.J. De Jong , Deanne N. Den Hartog Innovative Work Behavior: Measurement and Validation.

[13] Tsai, C.F., & Yen, Y.F. (2018). Moderating effect of employee perception of responsible downsizing on job satisfaction and innovation commitment. The International Journal of Human Resource Management, 1-25.

[14] Waheed, A., Abbas Q. & Malik O. (2018). ‘Perceptions of performance appraisal quality’ and employee innovative behavior: Do psychological empowerment and ‘perceptions of HRM system strength matter?. Behavioral Sciences, 8(12), 114-134.

[15] Zhou. W & Velamuri V.K. (2018). Key contextual success factors for employee innovative behavior: A study in a foreign manufacturing subsidiary in China.

[16] Jeroen P.J. De Jong, Deanne N. Den Hartog (2008) Innovative work behavior: Measurement and validation. Scientific Analysis of entrepreneurship and SMEs.

[17] Thomas W.H. Ng, Lorenzo Lucianetti, (2015). Within-Individual Increses in Innovative Behavior and Creative, Persuasion, and Change Self-Efficacy Over Time: A Social-Cognitive Theory Perspective Journal of Applied Psychology 2016 .Vol. 101 , No. 1,14–34.

[18] Martin Lukes, Ute Stephen, (2017). Measuring employee innovation. International Journal of Entrepreneurial Behavior & Research .Vol. 23 No pp.136-158.

[19] Akram,Tayyaba; Lei, Shen, Haider, Muhammad Jamal (2016). The impact of relational leadership on employee innovative work behavior in IT industry of China. Arab Economic and Business Journal Vol. 11, Iss. 2, pp.153–161.

[20] Isabel M. Prieto and M. Pilar Perez-Santana, (2012). Managing innovative work behavior: The Role of Human Resources Practices. Emerald Group Publishing Limited.

[21] Shung Jae Shin, Feirong Yuan and Jing Zhou (2016). When Perceived job requirement increases employee innovative behavior: A sense making perspective. Journel of Organizational Behavior, J. Organiz. Behav.


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12

Future of Work: Man–Machine Collaboration (Recruitment)

Noble SamuelAhmedabad University, Ahmedabad

ABSTRACT

Human Resource is an integral part of any company. Employees are considered to be the most useful and important resource a company can have. It is very important that the right employees are recruited and after recruitment these employees are taken care of properly. All the tasks related to employees, their welfare and benefits are taken care of by the Human Resource Department of a company.

Starting from selection of candidates to recruitment of employees to helping employees give their best to saving them from burn out and many other important aspects and tasks are all taken care by the Human Resource (HR) Department of a company. In all these tasks recruitment is considered to be one of the most important tasks as the employees selected will decide the future of the company and so it is very important to select the right employees for the job so both the employees and the company can benefit from it.

Selecting the employees for the future of the company based on their present position is difficult and tiresome too. One has to go through hundreds of applicants in order to select the right candidates. These processes can be made easier and more efficient by involving machines and Artificial Intelligence into it. Man, and Machine collaboration would make the perfect combination for selection and recruitment process.

INTRODUCTIONThe paper would be discussing about the future of Human Resource specifically in the field of recruitment. There would be a detailed discussion about how Artificial Intelligence would be helping human make better choices while recruiting employees. It would also be talking about the various methods that will be used in the future after man and machine collaborate. We have always been obsessed with thought of creating intelligent machines (Ashwani Kumar Upadhyay, Komal Khandelwal., Applying artificial intelligence: implications for recruitment. 8 October 2018.) It is very sure that in the near future half of the human work would be done by machines. The paper is very clear on the fact that machines will be brought in to help humans and not replace them.

For Example: Machines can easily select the candidates that are eligible/qualified for the job reducing the workload at huge level from the recruiters. The Artificial



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Intelligence technology would also be able to tell if the candidate if apt for the job and about his performance in the coming years. It would be able to predict the behaviour and tenure of his life at the company based on his past data and help the recruiters take decisions accordingly. Example: Call centres.

The discussion of the paper is quite relevant and apt as where are living in a century where we can imagine all this. If we talk about the 19th or early 20th century it would have been impossible to even imagine man and machine working together, but in the 21st century we know quite for sure that the technological advancements that we have made are not stopping here and we are developing each second. With this progress and fore sighting, the future we can be sure that the day is not far when man and machine will work side by side. The topic in the field of HR is relevant as we know that many a times by employing the wrong candidate a lot of resources of the company are wasted. Even during the selection and recruitment process a lot of efforts and human resources are spent which can be replaced with a minimal expense of software and Artificial Intelligence (Artificial Intelligence). This would not only reduce the expenses for a company but will also reduce the burnout of recruiters and bring out the most efficient and accurate results.

There is always an ongoing debate whether machines and Artificial Intelligence are capable enough to replace humans and their abilities. Talking about recruitment while selecting the candidate through a machine or Artificial Intelligence it is quite predictable that it will follow the set of instructions and standards that are programmed into them, whereas on the other hand humans use their instincts and few a times even make the right choices. But the real question here is how many times does this instinct prove to be true? What is the benefit of one instinct over the tiresome work of going through thousands of applicants which could have been even taken care of by a machine? This paper will contribute in the topic of whether humans are to be replaced by machines or are to be added to human help.

LITERATURE REVIEWHR plays a very important role in the functioning and growth of the company as it supports and take cares of the backbone (employees) of the company. Employees are one of the most valuable resource a company can ever cherish. Without the employees the working of the company is impossible. One should keep in mind to use these resources very carefully and not exhaust them. Employees should be taken care of well as they are the ones taking care of the company. HR has a crucial role in the journey of an employee beginning from his/her recruitment till the employee retires, HR takes care of everything and makes sure that the employee is able to give his best.

Artificial Intelligence is a technological advancement achieved that helps the human to get their work done smarter, faster and more efficiently. AI is the future as it cuts down the human work by 60% and also reduces the time span of a work. AI in the present time is being used by many organizations for various purposes. AI can be useful when worked together with man, but assuming that it will replace human is a different perspective. We live in a world where we aim at growth each



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and every moment and it is very important for us to innovate and adapt to the new technology. Technology is evolving at a pace which is unimaginable and if we don’t predict the future and don’t change accordingly then the chances of our survival in the competition is at stake.

Decisions taken by Human resources are limited to human knowledge (Arthur Yeung, Patricia Woolcock, John Sulliva. Identifying and Developing HR Competencies for the Future. (n.d.). HR being the backbone and AI being the future of technologies, it would be an ideal proposal to combine both of them and get more efficient and productive output. Recruitment is a process where a lot of activities like screening of applicant’s form, their documents and tests care carried out. A lot of time and human resources are spent on this. This could easily be done the machines and could possibly provide with better results too.

For Example: Computer software could easily do the screening process of various candidates and then come with a shorter list as compared for recruitment. This would help pace the process as well get more accurate results in a shorter span of time. This reduces the time and resources spent.

There are few methods that are currently being used for the recruitment process which also give us a rough idea and a sketch of how advanced the software’s and machines would be in the future. These would be bringing out the best in us.

The few methods used for recruitment nowadays are as:

Semantic Search Technology

In recruitment semantic search is an innovative technology for enhancing the precision of search outcomes when searching the internet or the internal systems of an organization. The main aim is to make the meaning of the ideas and the relationships between them comprehensible for machines, which would help in making improved logic of the user’s query context and intent.

Job Aggregators

A job aggregator is a search engine which aids job boards & job seekers thereby helping probable applicants to get appropriate jobs. When a probable candidate searching for an appropriate job keys in a query for a job search in a search engine, it shows the available jobs corresponding to the keywords from several portals. A job aggregator portal would extract job postings from multiple job websites where different jobs are posted which means candidates can see job listings at a single place without the need of going to different job portals.

Examples: Indeed, CareerBuilder & Google.

Automation for Scheduling

Automation in recruitment is a technology that lets corporations automate hiring tasks so that the recruiter productivity and yield ratio can be increased. By implementing this there would be an increase in time-to-fill, reduction in cost-per-hire and finally it would improve the total talent profile in the organization which is a key task of the Talent Acquisition team in any organization.



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Efficiently and effectively write in controversial language and email communications while scheduling candidates. Details of each request and preferences are used to find the best scheduling options.

Examples: Clara Labs, ConveyIQ, Paradox & AllyO.

Pre-hiring Assessment Tools

Employment of the incorrect individuals can have a very adverse effect on the morale of the employees and the management time. It becomes a huge expense on the organization as a lot of the training and development cost is incurred. So, Pre-employment tests & innovative screening tools and techniques help Talent Acquisition team to lessen hiring time and hire the most suitable candidates who are best suited for the organization. Gamified neuroscience approach coupled with bias free algorithms to map the right candidate. They are run on a series of behaviour-based games that collect millions of data points for objectively measuring cognitive and personality traitsExamples: Hacker Rank and Pymetrics

Artificial Intelligence and Automation

Artificial Intelligence in recruitment is a fat developing thing in HR with an aim to reduce the time-consuming actions like manual screening of CV’s. Screening CV’s capably and efficiently is one of the main tasks in recruitment. Artificial Intelligence in recruitment is basically problem-solving or learning that a computer does in Talent Acquisition of new candidates. It is intended to restructure or automate parts of the recruiting workflow like the iterative high-volume tasks. It uses machine learning to auto-screen candidates for a particular job based on the competencies mentioned in the job descriptions.

Ideal uses Artificial Intelligence to screen and shortlist candidates by analysing rich candidate information such as Resumes, assessments, conversations and performance data.

Miscellaneous

Applicant Tracking System

ATS eases the work of human as it collects internal data as well has a record of external data of various candidates from different websites. This eases the process of inviting various applicants and then screening their applications, instead the software does all this and saves a lot of time and human efforts too.

Examples of few companies that use ATS now are: Buulhorn, Greenhouse, SAP, Success Factors.

Video Interviewing

A lot of companies are using this nowadays to interview candidates from different geographical locations. This has removed the restriction of candidates not being recruited because of geographical restriction. A lot of interviews are taken through this within a state as well as outside.



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Few examples of companies who used this technology on a large scale for recruitment are: HireVue & SparkHire

Human Management Capital Software

This software helps the company in maintaining a track record of all its employees and their traits. It also keeps a record of the applicants who were not recruited so that they have a data when the company has an opening for the same. This way the company has a record of all their talented employees and people retained too. This software is generally used by a big size firm.

Few examples are: BambooHR, Namely’s, OpenTute

PRIVATE SECTOR ORGANIZATIONSThese processes are not industry specific as each and every industry can make a different use of it and add it to its own benefit. But if we try to be sector specific, we can say that it will be used more in private sector organizations than as compared to public sector organizations.

Private sector organizations are always on the verge of cost cutting and maximizing the profit. The reason why the private sector is selected for the given discussion is because private sectors recruits only those employees who would be the most beneficial to their business. It’s not that the recruitment process carried out by humans is flawed or does not select the right candidates but the new approach of man and machine collaboration will help them do a lot better. It will help them recruit the right kind of employees who match the company’s values, ideology and goals. The recruitment process would be done more on the basis of facts and not just mere human instincts. Employees contribution to the company could also be known beforehand and hence necessary changes could be made accordingly during their training.

Few examples:

a. Call centres could use the most of this feature while recruiting employees as they could know whether or not the employees are apt for the prescribed job. They could also know the nature of an employee and his social traits which are very important for the job that he is applying to.

b. Companies like Google, HP and Amazon could use these techniques to recruit employees who match their culture and have the same goals as the company.

c. KFC has started using gamification to train their employees after selecting them. This gamification helps them with the process of cooking and also is an ENABLE activity. This is different from the monotonous training session and also helps the employees adapt things faster and in a better manner. After the completion of the game, the final recruitment is done from the selected employees.

Talking more specific to industry this could be used in all types of industry but more specifically in service and e commerce industry. It will also be used by companies



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who have non-traditional work culture in their companies. Companies like HP and Google who believe in continuous innovation and growth could make the best use out of it. By using this method, they could recruit the right employees who are in line with their values and would be beneficial to the company. This way the company can identify the potential employees and groom them from beginning for the succession.

Artificial Intelligence and other software’s can reduce the work of man scrutinizing the candidate list upon the basis of specific standards. This will reduce the number of employees that one would have to interview. Also, a comparative report of a candidate from both machine and human will help in better selection of an employee. It also increases the accuracy by 95% while recruiting.

CompArAtive AnAlysis

Table 1

Company Without Machine Ideal Time with Machine

Amazon 1-2 months 10-15 days

Google 3-4 months 1-2 months

HP 1-4 weeks 1-2 weeks

WeWork 3-4 months 1-2 months

Note: The time taken in the table for the column ideal time with machine is purely based on assumption as there are no theories or models related to it. This is the prediction of the future and no primary or secondary data is used to predict the ideal time.

On an Average:

Amazon Takes at Least a Month’s Time to Interview and Select an Employee

Amazon bring one of the leading e-commerce websites takes careful and precautionary measures while recruiting it employees. It makes sure that the employees that are recruited are in line with the company’s goals and values. Amazon also provides benefits and incentives higher than the prevailing market rate so it is very important for them to choose the right kind of employees.

Google Takes around 15-20 Interviews Spanning around a Period of 3–4 Months

Google is on the top of providing internet service to its customers worldwide and makes sure that employees recruited have a significant contribution in the company’s growth. They also aim at the overall development of the employees and continuous growth of the company. As they aim at continuously growing, they make sure that their employees are always curious and are exploring new ways to make theirs as well as others lives easy. This is one of the main qualities that they look for in an employee.



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HP’s Interview Round Spans for a Period of 1–4 Weeks

HP’s core value is innovation and is constantly on the verge of bringing new products in the market staying one step ahead of its competitors. While recruiting its employees they conduct various tests and competitions to check the candidate’s skill sets. Also they encourage employees to learn new things every day and even arrange for the same.

WeWork’s Interview Rounds Lie within a Range of 3–4 Months

WeWork is a growing service providing company. They help companies have better workspace, better technology to work and provide them with many other facilities. Care, customer satisfaction, creativity and innovation these four are their core values and they stay firm on it and also keep in mind while recruiting its employees.

From the above data we can see that each company takes a considerable amount of time to recruit its employees and huge amount of resources are spent on this too. Apart from money, a considerable amount of human resources is also spent for conducting these activities. With the collaboration of man and machine we can ideally reduce this time to half and also the exhaustion of resources would be reduced. This would increase the accuracy while selecting employees and also the right employees required for the companies will be selected. Also, the exhaustion of human resources would be reduced which will bring out better productivity and more efficiency.

exAmples of few CompAnies thAt Are AnD will be using the new teChnology in the future

KFC

KFC has started using gamification in order to train its chefs the procedure of cooking. This was a revolutionary step taken by KFC and was a different practice as compared to the traditional old practices which the other food chains were following. Generally, the chefs used to go through a rigorous training process in which they were trained for a week or so regarding the various dishes that the food chain offered. After the training was over, they were given a test, which they had to pass in order to be recruited. The ones who pass this test were only recruited and the others were retained till further openings.

KFC has also started the new trend of employing deaf and dumb people for which, they have customized their training methods. They use various different types of simulation in order to train theses employees in the real world. There are various methods of gamification and simulation that are used to make the employee and customer experience both smooth and satisfactory.

KFC might use technologies in future which might enable the employees to hear what the customers are trying to say more easily. This will not only be beneficial to the employees but will also increase customer satisfaction. They are also working on customizing their training and recruitment processes to hire more efficient and skilled employees.



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Google

Google has started hosting coding competitions through which they do talent acquisition which later helps them in the process of recruitment. It rewards it winner with monetary benefits and also gives them a chance of interning at the google headquarters making them familiar with all the work procedures, values and patterns that the firm follows.

Google believes in investing in its employees and so also aims at least employment turnover rate. For this it provides it different types of benefits and incentives at a higher rate as compared to the other companies. Apart from this there are many a times when employees willingly leave the company even though they receive so many benefits as they believe that there lie better opportunities for them outside the company. For this they use, various test such as psychometric tests and other tests which determine the level of determination and dedication that an employee has or will have towards the company. It also considers factors such as ambition, curiosity, eagerness and determination which are considered to be important factors for recruitment at Google.

Google is supposed to be the most technologically advanced company and surely will be using various technologies to recruit employees all over the world. It is planning to groom its potential candidates from a very young age by selecting the potentials with the help of various software’s and test.

WeWork

WeWork is in the business of service providing. It provides advices and services to various companies regarding work structure, technologies and other work-related issues. For this it uses various tests and methods while recruiting its employees as innovation and creativity is the main requirement of the company. For this the company holds a set of interviews during which the employees are presented with certain problems to which they find the solution. They are also put under pressure situations which shows their pressure bearing capacity as well as their creativity which they use to solve the problem. All the above companies are using technologies to reduce their workload and to increase their efficiency. It is quite sure that with the advancing technologies in near future they will be making more use of such machines and technologies for the recruitment process, thus helping the company grow.

DISCUSSION AND MANAGERIAL IMPLICATIONSHuman Resource Department is always on its look to save its employees from burning out. They find different methods and ways to rejuvenate their employees and also to increase their productivity. By man-machine collaboration they will be provide with a solution that will reduce the workload and stress level at the humans. This way they will be able to give better productivity at their work and also indulge into various other fields too.Human Resource Department will also have to form new policies and ways to make man and machine work together. The proposal and idea truly exist only if man and



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machine work together and not against each other. HR will have to make sure that there is smooth co-ordination between the two and efficiency and productivity both are increased. They will have to see that there is no kind of disruption as even a small spark can lead to the failure of the entire system and approach.

Future of recruitment according to the paper is the man-machine collaboration and one can be assured that the benefit lies in the working of man and machine together and not against each other. The proposal of man and machine working together for the recruitment process will be beneficial as the company will be evaluating and estimating the future of an employee even before recruiting one. They would be able to customize their training programmes and incentives plans according to the employee’s nature, traits and requirements. Thus, in overall, they would lead to a higher productivity and a faster growth rate of the company.Though this idea proposes for the benefit of the mankind, there are few negative aspects of this collaboration such as:

• Lay off of people would take place. As half of the processes carried out by human would then be carried out by machines and software’s it would lead to the lay off of people from their jobs creating a disruption but It will also open new openings for various positions,

• Human touch and instincts would be left out of the recruitment process. Human touch is a very important aspect in the recruitment process and without it would be an automated generated programmed result. Hence, we cannot totally cut human from the process.

• Recruitment would be done only on specific standards and overall development of an employee won’t be taken into consideration.

While recruiting an employee, one is not recruited based on one’s specific skill sets but is also judged on one’s overall development. Ones personality, nature and traits also play a role in recruitment.

• Companies will have to restructure their working pattern as machines will bring a huge change as compared to the traditional methods.

• Technology is quite costly so there would be heavy investment required from the company’s side.

The company’s will have to through a financial restricting as their investment in machinery would increase which might eventually lead to decrease of investment in the Human Resource and other areas.

There is also a chance that a single error by the machine or the man can turn down the entire process (assumed). Conflicts between man and machine’s thinking, results and judgements might also lead to a serious imbalance in the work environment. All these should be and will be considered before adapting to the system.

On comparing the negative and positive aspects of the man-machine collaboration we can see that are few negative aspects too but the positive ones outnumber the negatives ones and hence, it would be advisable to adapt to the new technology and use resources to its maximum potential.



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CONCLUSIONFrom the entire discussion in the paper we can conclude that man machine collaboration will be quite important for various HR activities. Tasking specifically about the recruitment process the man and machine collaboration will be a boon to HR and the company as they will be saved the hazardous and tedious traditional process of selecting the employees after screening their applications and then checking whether they are eligible or not as per the set standards. Even after selection a company needs to conduct rounds of interview to recruit the final employees. With the man-machine collaboration the work load will be reduced as well as their resources will used to the maximum for faster growth. This way a win-win situation will be witnessed in the future when man and machine collaborate to bring out better efficiency and productivity.

This practice can be used in all types of industries as recruitment for all positions are carried through different methods. Even the resources spent are of different kind and at a different range. Hence, the replacement of machine for the tedious work of humans will be evident and useful in almost all the sectors and industries.

REFERENCES[1] Tom Haak (January 30, 2017). Man-Machine Collaboration (HR Trends 2017, 4). By HR institute.

Retrieved from: https://hrtrendinstitute.com/2017/01/30/man-machine-collaboration/

[2] Kelly Barcelos (March 7, 2018). HR Embracing Agility with the Man-Machine Collaboration. By Jobsoid. Retrieved from: https://www.jobsoid.com/hr-embracing-agility-man-machine-collaboration/

[3] Edgeadmin. (Mar 22, 2018). Machine-human collaboration: Is this the key to future HR success? By Edgenetworks. Retrieved from: https://edgenetworks.in/2018/03/22/machine-human-collaboration-key-future-hr-success/

[4] H. James Wilson, Paul R. Daugherty (July–August 2018). Collaborative Intelligence: Humans and AI Are Joining Forces. By Business Harvard. Retrieved from: https://hbr.org/2018/07/collaborative-intelligence-humans-and-ai-are-joining-forces.

[5] Manish Bahl (Oct 04, 2018). The Five Ts of Human-Machine Collaboration. By Cognizant. Retrieved from: https://www.cognizant.com/futureofwork/article/the-five-ts-of-human-machine-collaboration.

[6] Preparing for a future of Man machine Collaboration. (n.d.) Retrieved from: https://www.wipro.com/content/dam/nexus/en/newsroom/win/2017/cobotics-ien-europe-2-11-2017.pdf.

[7] Alice Carpenter (December 4, 2018). Five ways to ensure man-machine collaboration. By Aspioneer. Retrieved from: https://aspioneer.com/five-ways-to-ensure-man-machine-collaboration/

[8] Human-machine collaboration transforms the workplace. (n.d.) Retrieved from: https://www.pnc.com/content/dam/pnc-ideas/articles/CIB_ENT_PDF_0116-071-211502-CIB_NovArticles_Machine_rev1.pdf.

[9] Hiring Process at Amazon.com. (n.d.) by Indeed. Retrieved from: https://www.indeed.com/cmp/Amazon.com/faq/hiring-process.

[10] Amazon Recruitment Process. (n.d.) by Geek for geeks. Retrieved from: https://www.geeksforgeeks.org/amazon-recruitment-process/



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[11] Tom Popomaronis, (Apr 17 2019). Here’s how many Google interviews it takes to hire a Googler. By CNBC make it. Retrieved from: https://www.cnbc.com/2019/04/17/heres-how-many-google-job-interviews-it-takes-to-hire-a-googler.html.

[12] Human Capital Management Software (HCM Software). (n.d.). by techpedia. Retrieved from: https://www.techopedia.com/definition/28076/human-capital-management-software-hcm-software.

[13] John Shields. (August 30, 2018). 8 Things You Need To Know About Applicant Tracking Systems. By jobscan. Retrieved from: https://www.jobscan.co/blog/8-things-you-need-to-know-about-applicant-tracking-systems/

[14] Hai Dong, Farookh Khadeer Hussain, Elizabeth Chang. (March, 2008). A survey in semantic search technologies. By research gate. Retrieved from: https://www.researchgate.net/publication/224331268_A_survey_in_semantic_search_technologies.

[15] Arthur Yeung, Patricia Woolcock, John Sulliva. Identifying and Developing HR Competencies for the Future. (n.d.). Retrieved from: https://s3.amazonaws.com/academia.edu.documents/7400423/identifyinghrcompetencies.pdf?response-content-disposition=inline%3B%20filename%3DIdentifying_and_Developing_HR_Competenci.pdf&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIAIWOWYYGZ2Y53UL3A%2F20191202%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Date=20191202T052915Z&X-Amz-Expires=3600&X-Amz-SignedHeaders=host&X-Amz-Signature=26c979ee4d514215059c5b2fe50895a091cf47aaa9abf57b8cf9d956fdd7b9ef.

[16] Ashwani Kumar Upadhyay, Komal Khandelwal. (8 October 2018). Applying artificial intelligence: implications for recruitment. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/SHR-07-2018-0051/full/html.


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13

A Study on Happiness among Faculty Members of Selected Colleges across Alappuzha, Kerala

Shino Abraham1and Sumina Susan Kochitty2

1,2Saintgits Institute of Management, Affiliated to APJ Abdul Kalam Technological University, Trivandrum

ABSTRACT

For millennia, human happiness has been a fascinating subject for philosophers as well as poets. It is in the recent times that valid methods to measure the same have been developed. Happiness in the workplace is directly associated with increased productivity and better group performance at work. And this also holds true for the teaching fraternity of higher educational institutions. This study has made an attempt to understand the factors influencing happiness among faculty members specifically in Commerce Colleges in Alappuzha District of Kerala.

The population considered for the study is the faculty members of Commerce Departments in Alappuzha, Kerala. The independent variables undertaken for the study are work context, personality, values, culture and goals; happiness being the dependent variable. Through purposive sampling, data was collected, using a questionnaire, from a sample of 50 faculty members.

Statistical tools namely correlation and regression were used for testing the data and drawing inference from the same. Research findings show that a significant relationship exists between happiness and work context, goals, personality, values. From regression, it could be concluded that 68% of changes in happiness is influenced by work context and goals. Hence, more attention needs to be invested in work context and goals to ensure happiness. Happiness of employees of any organization has a positive impact on their productivity as well as the quality of the deliverables. Happiness breeds positivity which is imperative in the ever changing and dynamic world of education.

Keywords:Happiness, Work Context, Personality, Culture, Goals, Values, Faculty, Kerala, Commerce Colleges.

INTRODUCTION

Happiness in any workplace is a subjective concept which is gaining momentum and significance. The necessity for increased productivity has made the organizations shift their focus to the happiness of their employees. At work, one is more likely to undertake risks or perils that could lead to subsequent increase in happiness.

For this very reason, employee who are happy tend to be more amiable to opportunities, readily mingle with their colleagues, do not hesitate to help their



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coworkers, and also have a more positive approach. On the other hand, an unhappy person or employee feel the need to protect and defend their source of happiness as it is limited. This further discourages them from taking risks as they fear the loss of their happiness. For this very reason, people who are not happy easily feel threatened in their work environment which results in them being defensive and cautious around their coworkers. They also tend to be less optimistic and confident. For an unhappy employee, there is a compulsive need to preserve the sparse source of happiness which results in the poor performance of the employee. In the case of a happy employee, there is flexibility due to the presence of ample sources of happiness that leads to superior performance in their workplace. Thus, organizations are increasingly feeling the need to ensure or enhance the happiness of their employees so as to increase their productivity.

In one of the studies administered by University of Warwick, UK, it was found that upto 12% happy employees are more productive than unhappy employees. In earlier studies, it has been observed that people who have a tendency to give in to their negative emotion more easily tend to use disputable interpersonal manoeuvres, resulting in the displeasure of their colleagues. Hence, unhappy people report less support being received from their coworker and supervisors when compared with their happy counterparts. It has further been observed that happy people tend to perform much better in jobs or tasks where social interaction is an essential requirement.

For an employee to stay committed to an organization, one should be happy working for as well as in the organization. Or else it can lead to job dissatisfaction resulting in the lowering of quality of the work done by the employee. This may also result in the employee looking for a job change where the employee can conserve their happiness. Where the teaching fraternity is concerned, frequent switchovers of faculty have been observed in educational institutions.

The study helps the Education Industry to study the relationship between the factors causing happiness for faculty working within an institution. Further, it can also facilitate the education institutions in retaining their trained faculty members. This can also lead to an increase in commitment of the faculty members towards the institution. Hence, this study was conducted with the aim of understanding the happiness of faculty and the factors that can influence, which may help the institutions in retaining their existing employees and have qualified faculty join their institution.

OBJECTIVE OF THE STUDYThe paper aims to look closely at the concept of happiness and the factors that can influence the same in the context of the education industry. The objectives of this study are

• To study the variables that influences the happiness of faculty.

• To understand the relationship existing between the factors influencing the happiness of faculty.



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Diener, Suh, Lucas, & Smith. (1999)—There are two set of variables that clearly can explain the differences in the levels of happiness or well-being of the employees at work. The first set consists of factors revolving around the individual employee namely value, personality and goals. The second set includes the characteristics of the organization like the organizational culture and the work context.

The past decade has witnessed the rise of positive psychology. This has led to more attention being given to positive concepts like happiness. This is in contrast to the earlier areas of research which were more about negative concepts illness, depression, stress, and similar negative experiences and outcomes. This has inspired researchers of organizational study to undertake research on positive psychology. Further, the shift in the area of research has also generated much interest in areas like positive organizational scholarship and positive organizational behavior.

Porto & Pilati (2010) states that the constructs related to happiness are generally defined and measured as impermanent states that differ at the individual level that can consist of positive mood, the experience of flow of emotions such as satisfaction joy, pleasure and happiness.

Personality has also been considered as a variable to understand happiness. It has lead to a much better understanding as to why certain individuals are more satisfied than others. The big five traits of personality as well as the positive and negative disposition have been able to explain job satisfaction. Diener, Suh, Lucas, & Smith. (1999) found that inspite of earlier researches corroborating the influence of these variables on happiness, there is still much work needed to be done to understand the interconnection between the characteristics of an individual employee and the organization. Hence, several researches have been done to explain the integrated influence of the two types of characteristics on satisfaction, happiness and several other similar ideas. Inspite of the large amount of research done in this area, there seems to be a lack of attention in some areas, which has lead to gaps, especially happiness at one’s workplace.

Even though there exists quite a number of theoretical assumptions with reference to the non–linearity between organizational characteristics and happiness, very few studies have been conducted to analyze this trend. According to Russell Cropanzano, a non-linear relation in this matter implies that the increase in positive predictors of happiness can promote increase of happiness up until a certain point, after which happiness ceases to grow in the same pace as before, eventually even dropping its levels. Ultimately, in relation to personal and organizational value interactions, there is a dearth of compatible models to understand the structure of values. The relevance of a well-structured model of values is also to be noted. Contemporary research has focused their attention to constructing and analyzing interventions that aim at improving long term happiness. One major breakthrough in this regard involved an



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on-line assessment of—one’s signature strengths coupled with instructions to use character strength in a new way each day for a week. Another effective intervention involved writing down three good things that happened each day and attributing causes to each, for a week. However, improving happiness is not so easy. For example, practicing gratitude three times per week was less effective than doing it once per week, perhaps because the habituation began to set in, while performing several acts of kindness on a single day of the week was more effective than performing one act per day over the same week. Juliana Moraes de Sousa (2015) studied that work engagement, job satisfaction and organizational commitment would be a part of a comprehensive measure of individual level happiness. Certain aspects of happiness have been conceptualized and measured at multiple levels, including transient experiences, stable person level attitudes, and collective attitudes, and with respect to multiple foci, such as discrete events, the job, and the organization. There is evidence that happiness has important consequences for both individuals and organizations.

Hartnell, Ou & Kinicki (2011) researched that experience of work indicates how employees feel in their day-to-day working lives. The stresses and frustrations of work are explored, along with, how happy and engaged they are in their jobs as well how worthwhile they find them. No one can deny that stresses and frustrations are an inevitable part of our working lives. Sometimes employees are faced with deadlines or are required to do mundane and uninteresting boring tasks. Consequently, when negative feelings are frequently and persistently experienced, they prevent people from performing at their best. One of the most important goals of organizations is to have engaged employees. When employees are interested, absorbed and can relate to the work that they do, they find the work very rewarding and motivating. As such, when employees find their work genuinely worthwhile and personally satisfying, then not only is their work more rewarding for them it also tends to reduce absenteeism, retain good people and raise productivity. When employees are able to apply their own ideas, organize their own work and influence decisions around them, they are better able to show how capable they are.

Russell Cropanzano further states that healthy relationships are the epitome of great teams and great organizations – they also help make great places to work. As such, they support cooperation, collaboration, higher performance and an environment where everyone cooperates and nobody wants to leave. Organizational system is about how employees experience their workplace. It covers how is the quality of the work environment is, how well the organization is managed, the way jobs are designed and how employees assess the social value of their work. Getting the management system right is also one factor that attributes to the success of any organization. In order to thrive, people need to feel trusted as well receive regular and constructive feedback so that they learn and develop in their roles. The organizational culture, the values, as well as the location and the physical surroundings can all support, or undermine people to carry out their jobs safely and to a high standard.



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Sousa, J. M., & Porto, J. B. (2015) studied that if employees are happy in their personal lives it has positive impacts on both of their own and their colleagues’ work experiences. Having a strong and supportive relationship is one of the essential elements of personal happiness. Peoples’ confidence and ability to cope with the unexpected challenges of life is what enables them able to learn, adapt and feel optimistic about the future. This, in turn, breeds resilience which is critical in the changing world of work.


In this study, the aim was to understand the relationship between happiness and the factors influencing it. The hypotheses tested in this study are mentioned below:

• H01: There is no significant relationship between work context and happiness in an organization.

• H02: There is no significant relationship between personality and happiness in an organization.

• H03: There is no significant relationship between values and happiness in an organization.

• H04: There is no significant relationship between culture and happiness in an organization.

• H05: There is no significant relationship between goals and happiness in an organization.

The population taken for the study consisted of the faculty members of Commerce in the entire district of Alappuzha. The sample size employed for the study was 50. The happiness of the faculty members were measured on the basis of 5 independent variables namely Work Context, Personality, Values, Culture and Goals, the dependent variable being happiness. Data was collected through primary sources. A structured questionnaire was employed for collecting primary data. The questionnaire consisted of 12 items for measuring the dependent as well as the independent variable. The responses were rated on a Likert scale of 5 where 1 denoted “Completely disagree” and 5 denoted “Completely Agree”. Questionnaires were distributed to the concerned respondents. 50 valid responses were collected. The collected data were analysed using correlation and regression through the SPSS Software.

RESULTS

The results of correlation suggest that a significant relationship exists between Work Context, Values, Personality, Goals and Happiness since the significance value is below .05. Hence, the corresponding null hypothesis - H01, H02, H03 and H05, are rejected.



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Table 1: Correlation Analysis

cWC cC cV cP cG cH

cWC

Pearson Correlation 1 .238 .526** .703** .526** .624**

Sig. (2-tailed) .09 .00 .00 .00 .000

N 50 50 50 50 50 50

cC

Pearson Correlation .23 1 .10 .335* .21 .087

Sig. (2-tailed) .09 .47 .01 .12 .087

N 50 50 50 50 50 50

cV

Pearson Correlation .526** .10 1 .374** .492** .534**

Sig. (2-tailed) .00 .47 .00 .00 .000

N 50 50 50 50 50 50

cP

Pearson Correlation .703** .335* .374** 1 .599** .522**

Sig. (2-tailed) .00 .01 .00 .00 .000

N 50 50 50 50 50 50

cG

Pearson Correlation .526** .21 .492** .599** 1 .767**

Sig. (2-tailed) .00 .12 .00 .00 .000

N 50 50 50 50 50 50

cH

Pearson Correlation .624** .08 .534** .522** .767** 1

Sig. (2-tailed) .00 .54 .00 .00 .00

N 50 50 50 50 50 50

From correlation, it has been observed that a significant relationship exists between the dependent and independent variables. Hence, the collected data were further analyzed through regression to understand the influence. Regression analysis helps in examining the influence of one or more independent variables on a dependent variable.

Table 2: Regression AnalysisModel Summary

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

1 .825a .681 .645 1.06772

a. Predictors: (Constant), cG, cC, cV, cW C, cP

ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 106.984 5 21.397 18.769 .000b

Residual 50.161 44 1.140

Total 157.145 49

a. Dependent Variable: cHb. Predictors: (Constant), cG, cC, cV, cW C, cP

Table 2 contd...



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Coefficientsa

ModelUnstandardized Coefficients Standardized

Coefficients t Sig.B Std. Error Beta

(Constant) .022 .624 .035 .972cWC .328 .130 .330 2.525 0.15cC -.133 .110 -.109 -1.209 .233cV .117 .127 .098 .925 .360cP -.075 .125 -.080 -.598 .553cG .675 .125 .617 5.402 .000

a. Dependent Variable: cH

From the regression analysis it can be inferred that 64.5% of changes in happiness is influenced by work context and goals since the significance value is .015 and .000 respectively, which is below the significant value of .05 (95% confidence level).

FINDINGSBased on the correlation and regression analysis carried out on the collected data, the following were observed:

• A significant positive relationship exists between happiness and work context• A significant positive relationship exists between happiness and values• A significant positive relationship exists between happiness and personality• A significant positive relationship exists between happiness and goals• 64.5% of changes in happiness is influenced by work context and goals

CONCLUSION

DisCussion

Happiness is a concept which cannot be easily measured. This study was an attempt to understand the factors that can influence happiness of employees in a workplace. It was observed that work context, goals, values and personality significantly influence happiness of employees in a workplace. Further it was noted that work context and goals have a considerable influence in happiness of the employees. Organizations/Institutions need to give due attention to the happiness of their employees in order to attract good talent, retain their existing employees and most of all, for increase in productivity. Happiness of an individual can be from several factors including personal as well as professional. An organization can take steps in ensuring the well being of their employees which leads to an individual being happy in their profession. Education industry too need to shift their focus on the happiness of their employees, since, this in turn affects the students.

mAnAgeriAl impliCAtions

The study also provides several managerial implications. Managers or supervisors should try to motivate their employees using the factors considered in the study.

Table 2 contd...



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Work context gives clarity to the job itself. Thus, the employees are fully aware of the requirements and expectations from the job. By providing this information, the employer is also minimizing the risk that newly recruited candidates leave the job due to their incompatibility to the work setting. The work context makes the occupational profile more precise. Work context can be used as a means of filtering to find more accurate concepts. Therefore the job description of the faculty should be structured and well defined for clarity. The organizations/ institutions have to accept the changing preferences and work life balance requirements of the employees and structure the jobs accordingly. Managers should also ensure that the job profile matches to a greater extent with the personality of the employee. Personality of an employee also plays an influential role in happiness. Organizations may take care of this aspect through close inspection of the candidate during the time of selection. Further, organizations should ensure that the goals of the faculty as well as of the organization should be well aligned. Values which are important for the faculty should be given due consideration by the organization. Or else, the faculty may feel adrift which may lead to disgruntled employees. A Happiness Committee may also be set up at the organization level for maintaining the decorum and fair being of the employees. This also can be considered as a sign of goodwill from the perspective of an employee. These shall ensure that the employees are motivated as well as happy in their workplace.

limitAtions AnD future reseArCh

This study is limited to faculty members of selected number of colleges in Alappuzha. Due to time constraint, only limited number of samples could be taken for the purpose of research. Measuring the happiness of college teachers across more number of colleges could be a further scope of study. Comparison between the happiness of teachers teaching at UG and PG level could also open up new dimensions of knowledge for researchers interested in this field.

REFERENCES[1] Cranny, Smith & Stone (1992). Levels Issues in Organizational Happiness Research.Journal

of Managerial Psychology, 61, 211–220.

[2] Cynthia D. Fisher (2010). Happiness at Work. International Journal of Management Reviews, 12 (4), 384–412.

[3] Diener, Suh, Lucas, & Smith (1999). Individuals affective experiences on hedonic tone, and pleasantness. Journal of Occupational and Organizational Psychology 48 (01).

[4] Hartnell, Ou, & Kinicki (2011). Pursuit of positive social relationships and positive contribution to society through work. Human Resource Development Quarterly 22 (605).

[5] Juliana Moraes de Sousa (2015). Happiness at Work: Organizational Values and Person- Organization Fit Impact. Journal of Applied Behavioural Science 61, 211–220

[6] Porto & Pilati. (2010). Direct Effect of Organizational Values on Happiness. Journal on Impact of working environment on job satisfaction, 38(2),336–361.

[7] Russell Cropanzano. (2016). When a “Happy” Worker Is Really a “Productive” Worker. A Review and Further Refinement of the Happy-Productive Worker Thesis (217).

[8] Sousa, J.M., & Porto, J.B. (2015). Work Happiness and PO Fit, Work engagement, career satisfaction and subject well-being. Career Development International, 97 (01).


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14

Employee’s Staying Intention in a Startup: Why and Why Not?

B. Aiswarya1 and G. Ramasundaram2

1Loyola College, Nungambakkam, Chennai 2P.S.G. Institute of Management, Coimbatore

ABSTRACT

Staying intention has always been of concern to scholars and experts, primarily because of its ability to “adversely impact corporate effectiveness and morale (Chen et al., 2011; Shaw et al., 2005)”. Around the same time, academics and specialists and practitioners are still trying to address questions like, “Why are people leaving?” And “Why are they staying?” (Na Zhao, Lu Lu and Jun Liu 2017)

While a multitude of scholars have proposed how ‘psychological ownership is positively linked to optimistic work-related behaviours” [1] such as employee satisfaction, interpersonal engagement and organisational identity. The process by which psychological ownership helps minimise the turnover intent remains under investigation, and further study is required to quantitatively exemplify the significance of the correlation among “psychological ownership and continued intent”. To alleviate this question, we recommend that the intent to stay be one pattern of “job attitude”.

Start-ups are key to India’s economic stability. In this economy, start-ups play an important role in producing jobs, making a substantial proportion to GDP, also provide a wide range of goods and services.

Experts indicated that start-ups might well have trouble sustaining workforce as start-ups are expected to report lower degree of purported employment credibility than big enterprises. In other words, start-ups are more likely to see staff and job-seekers as rather quiet (low) ideal, modest, or acceptable bosses. As a consequence, start-ups seem to be more likely to trigger job insecurity than larger businesses.

“The issue discussed by this report was the employee’s desire to remain with a start-up organisation. The factors considered in the research are psychological ownership and affiliation to the workplace”.

A key managerial presumption indicated by the study is that managers should intend to establish courteous, intensely interpersonal relationships between workers at the workplace by the introduction of formal or informal procedures to promote more interpersonal interactions. (Settoon & Mossholder, 2002).

Keywords:Employee Staying Intention, Psychological Ownership, Organisational Identification, Job Commitment and Satisfaction



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INTRODUCTION

“Researchers proposed that workers stay if they are happy with their work or associate with the company and leave and if they’re not (Lambert et al., 2001; Tett & Meyer, 1993; Van Dick et al., 2004)”.

Others also recommended more organisational methods to mitigate the intent to consider leaving including a range of human resource practises to strengthen labour relations, like that of “acknowledgement of workers performance and achievements (Davies, 2001)”, provision of adequately demanding and diversified job material (Kraut & Korman, 1999), and “the social inclusion of more self-employed employees (Liu et al., 2011) and including staff in the decision-making activities (Allen et al., 2003)”

Staying intent, characterised by “a conscious and intentional intention to leave the company” (Tett & Meyer, 1993, p. 262), has to be the most substantial affective and cognitive indicator of real turnover conduct. Since then, surveys stressed that, as workers understand as well as serve as stakeholders of the firm, people would believe they do possess a larger obligation to add value to the “organizational functioning and success of the organization, will experience improved commitment to the organization and will thus be less likely to abandon their job (Pierce et al., 2001)”.

RESEARCH GAP

Start-ups are key to India’s economic prosperity. In this economy, start-ups play a big part in generating employment, raising the gross domestic product substantially and providing a wide range of services and products. Consequently, the success of small start-up companies has a huge effect on national economic health. Start-up company growth is also related to human capital. The expertise, talents and strengths of small companies are a potential core competence [4]. Considering the significance of “small and medium scale enterprises” and its main employees, very little study is devoted towards “human resource management in start-ups”. Concurrently, the “literature on employee retention in start-ups is scant (Cardon & Stevens, 2004; Wagar & Rondeau, 2006) however this discrepancy in theology is troublesome on both theoretical and realistic grounds”.

STATEMENT OF THE PROBLEM

Experts indicated that start-ups will have unique challenges in ensuring workers, since start-ups are are anticipated to have a relatively low level degree of assumed employer credibility than established companies (Williamson, 2000). Across other terms, start-ups tends to see staff and job-seekers as less enticing, decent, or acceptable workers. Therefore, “start-ups are much often prone to incur work turnover than developed larger firms (Storey & Greene, 2010). Cardon and Stevens(2004, p.316) observed, no research look at factors that influence employee engagement or retention of intent in start-ups”.



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INDUSTRY PROFILERecent World Bank survey report “India ranks 130 (out of 189 countries) in the overall ease of doing business ranking. The opening of an industry in India is much more challenging than some of its BRIC counterparts”. Essential elements such as supplying loans, electricity, payment of taxes and addressing liquidity crisis remain sluggish and challenging in India. The On 16 January 2016, Indian Government proposed the “Startup India, stand up India” initiative to provide a credence to the Indian entrepreneurial eco - system. The aim of the initiative is to create a database of start-ups and to provide a paradigm shift of entrepreneurial activities in the region.Maharashtra contributes to a large proportion of listed new firms, shortly followed by Delhi. “These two states, along with West Bengal, Karnataka and Tamil Nadu, account for 65.9% of all registered firms. But at the other side, the Northeastern states of Arunachal, Manipur, Nagaland and Mizoram collectively represent approximately less than 1% of registered companies” (Huffington Post, 2017).High-performing countries have continued to create a better environment for entrepreneurial investment by optimising their regulatory structure. Though Delhi and Maharashtra have emerged from their dominance as the political, financial and commercial hubs of the nation, Karnataka became the first country to create a start-up plan from 2015-2020 with a five-year timeline. The policy involves the establishment of “incubators in postgraduate schools”, “collaboration between research and development institutions and businesses”, and “technology incubators in higher education institutions”.Similarly, Tamil Nadu has set up a state-level facility in Tidel Park to set aside dedicated regions for start-up work. According to the World Bank, “it is viewed as one of the most critical considerations for start-ups to be able to build a macroeconomic environment that stimulates enterprise”.

OPENING A BUSINESSThe states wishing to foster “new businesses” have been permitted for appointing centralized “state ability” to support as a common medium of interaction for all start-up franchise agreement. The evaluation report undertaken by the “Department of Industrial Policy and Promotion (DIPP)” lists the top five countries on several criteria for efficiency of business growth:

Fig. 1

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The flexibility of start-up is regularly described amongst the most critical variables in all published studies.

ACCESS TO HUMAN CAPITAL

A main practice for profitable businesses is investing in human capital. A higher number of colleges per lakh population are in the southern countries of Maharashtra, Karnataka, Andhra Pradesh and Kerala. Under the “Technology Incubation and Entrepreneur Development (TIDE)” scheme initiated by the “Department of Electronics and Information Technology (DeitY),” so many of these organisations support incubation centres. In these states, nearly 50 percent of the 27 TIDE institutes have already been created. A strong connection with the initiation of start-up missions is given by the continuous availability of skilled individuals.

Fig. 2

The data strongly demonstrate that the states in the south of “Karnataka, Tamil Nadu, Maharashtra, Andhra Pradesh and Kerala” have been able to develop an innovation infrastructure.


psyChologiCAl ownership AnD turnover intention

“Psychological ownership” often described as just another cognition stage in which people assume that psychological ownership is the target. A sense of ownership against a single aim is the theological centre of this concept, and it indicates a significant connection between an individual and the aim. Workers are often socially entangled with their companies, and perception of ownership is often matched by a feeling of obligation for the progress of the company. (Pierce et al., 2001) [3].

The loyalty to remain is defined as one’s theory of expected burnout from the company, that’s been found to be the most direct predictor of actual turnover. The decreased plans of workers to leave sometimes go hand and hand with any improved optimistic work-related attitudes. Staff members’ perception that they are institutional stakeholders will influence their continued purpose in two ways. “First, individuals seem to believe that they ought to be more important (Beggan, 1992; Nesselroade et al., 1999), so workers who feel psychological ownership may think more about their company while compared it with other organizations. Second,



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several scholars (Pierce et al., 1991; Wagner et al., 2003; Van Dyne & Pierce, 2004) proposed that psychological ownership could encourage positive level of employee engagement and organisation, such as job satisfaction, organizational engagement, and organizational identity, which, in turn, minimize intentions to quit (Avey et al., 2009; Van Dyne & Pierce, 2004; Vandewalle et al., 1995)”[1].

the effeCt of work relAtionship Closeness

Professional partnerships as a “central component of the interpersonal work atmosphere have long been suggested to have a profound effect on workers’ intention to withdraw or remain with an organisation (Dess & Shaw, 2001; Morrison, 2004)”. During a continuous period of contact, employees may build sense of loyalty, trust and dependency on their superiors and co-workers. Around the same time, workers often receive guidance, reinforcement and help from many other people in the organization. As a result, several other participants have come near, some of whom are linked to staff. “The closeness of the working relationship reflects the degree of shared support, loyalty, empathy and insight that employees see from their co-workers (Chen & Chen, 2004; Chen & Peng, 2008)”. A multitude of studies indicate that the nature of cohesion with workers affects the actions of employees and their work-related attitudes. For example, “the nature of co-worker relationships can have an effect on interpersonal citizenship actions (Setton & Mossholder, 2002), and encouragement from co-workers can improve employee engagement and affiliation with companies (Rousseau & Aubé, 2010)”.As long as the desire to stay is concerned, the nature of the working arrangement often influences the inclination of the workforce to leave the job (Dess & Shaw, 2001; Morrison, 2004). This is because the expression of shared trust, caring and concern establishes interpersonal relations between workers and other stakeholders of the staff (Mossholder et al., 2005). Meretz and Griffeth (2004) suggest that attachment to individuals in an organisation should normally mean attachment to the organization.


The problem addressed by this study was the employee’s intention to remain in a start-up organisation. The variables considered in the study are psychological ownership and the work place relationship. “Psychological ownership and work place relationships are important constructs in the employee’s intention to stay in research”. psychological rate of ownership and the scale of the work place partnership are used to assess if there is an association between the level of decision to stay and how they link the turnover of workers to start-up firms. The quantitative approach used in this study has made it possible to establish the relationship between variables.

Q1. What is the “relationship between psychological ownership” on the staying intention of the employee in a start-up company?

Ho1 The person working for a start-up has “no significant relationship” between psychological possession and the staying intention.

Ha1 There is significant relationship between psychological ownership and the staying intention among the employee working with a start-up.



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Q2. What is the influence of the “psychological ownership” of the employee on the staying intention in Start-up Company with work place relationship as a moderator?

Ho2 What is the impact of the psychological ownership of the employee on the staying intention in Start-up Company with work place relationship as a moderator?

Ha2. What is the impact of the psychological ownership of the employee on the staying intention in Start-up Company with work place relationship as a moderator?

reseArCh methoDs AnD Designs

The approach used for this analysis was the empirical testing method. The methods used in this research used survey tools, such as the scale of psychological possession, the scale of the current purpose and the scale of the work place partnership.The statistics can be derived from the sample at a specific instance and the metadata can be ascribed over a span of time. Surveys were performed “vis-à-vis, interviews, telephone interviews, written questionnaires”. Surveys were presented with accurate information from the same collection of questions. They are systematic and are built to quantify variables.

populAtion

The employees who work for a start ups in Chennai are the population considered for the study. A sample of 400 was considered for the study, including varied age groups and gender. A “convenience sampling method” was used. A copy of the survey tools was given to each of the respondents in order to request full participation in the sample. Although 500 questionnaires were distributed around 425 were returned from which 400 were is a usable condition. Principal components factor analysis was carried out. The identified two factors that explained 54.9% of the variance.

meAsures

“5-point Likert indexes” were used for all cross and intra assessments, with anchors spanning from 1 (strongly dissident) to 5 (strongly dissident) (strongly agree).

Psychological Ownership

Three-point scale adapted from Van Dyne and Pierce (2004) was used to assess “psychological ownership”. The alpha coefficient was “I feel this is MY Company.” The Cronbach alpha for the scale was 0.81.

Staying Intention

“We used a three-item scale adapted from Bozeman et al. (2001) to measure turnover intention. A sample item was I am not thinking about quitting my job at the present time (reverse coded). The scale’s Cronbach’s alpha was 0 .77”.

Work Relationship Closeness

“A nine-item scale developed by Chen and Peng (2008) was used to measure employee perceived work relationship closeness. A sample item was We support each other at work. The Cronbach’s alpha was 0.84”.



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OPERATIONAL DEFINITION OF VARIABLES

Staying intent is known to be the consequence or predictor variable of this analysis. Psychological ownership, work place relationship and staying intention variables were tested.

DAtA ColleCtion, proCessing AnD AnAlysis

Data Processing

Empirical research began upon requisition of completed survey tools. When processed, the data was loaded into the SPSS and the parameters were run to detect any lost or invalid data, anomalies or human-made errors. Data cleaning and any appropriate data transitions and/or re-coding have been carried out at this period.

Data Analysis

For each experimental query, a multiple linear regression (MLR) was used to evaluate the results. Multiple linear regression is an effective approach for describing or forecasting the uncertainty of the explanatory variables using knowledge from multiple independent variables.

Discussion

Through this analysis, experts draw on a trilateral perspective upon this stance of developing and analysing a typology between the relational ownership of workers, the cohesion of the working relationship and the intent of turnover. The findings suggest that the scale of “psychological ownership” perceived by workers appears strongly linked to employee retention. In comparison, work place partnerships influence the effect between psychological possession and the desire to make a turnover. We also looked at the pragmatic role of working partner cohesion in the associated between psychological possession and continued purpose. Results support the positive influence, which illustrates that a good association with co-workers can increase the negative impact of psychological ownership on employees who remain purposely.

Pertinently, if a worker is considered to have a high degree of strong relationship with other employees, including mutual loyalty, confidence, empathy and viewpoint, then his or her probability of staying will improve. Contrarily, if the worker has a generalised co-worker association, he or she will experience stronger “turnover intention” than people in close relationships.

Theoretical Implications

Our thesis makes a variety of important disbursements to psychological ownership, on-the-job relationships and on-the-job analysis. Second, previous research addressed “Why do employees stay from various relational viewpoints, such as Social Capital Theory (Dess & Shaw, 2001), Social Interaction Theory (Van Knippenberg et al., 2007), and Job Embedded Theory (Mitchell et al., 2001)”.



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Our current research offers a unique perspective on the problem by building on the triadic perception of “psychological ownership”, work-place partnership and continuing purpose. Second, a mechanism answering the issue of “how psychological ownership affects the continued intent of employees” was explicitly proposed and empirically tested. While previous research has demonstrated that “psychological ownership” will raise the possibility that employees will proceed, there is still little scientific study.The present research fills this void and offers longitudinal proof of the negative effects of psychological ownership on continued intent. In relation, the findings of our research also suggest that “the association between psychological ownership and continuing purpose is mediated by a work place association.However, to date, observational research remains limited. Our thesis is the first to investigate the same empirically”. The findings of our research affirm the negative association between psychological ownership and on-the-job relationship and further show the positive effects on staying intention.

Practical Implications

Staying has drawn a large amount of corporate analysis with a clear connection with fact, taking into account the expenditures that turnover brings to firms in relation to the cost of core staff and the widespread belief that the ongoing target is positively related to organisational effectiveness (Shaw et al., 2009). Psychological ownership is a prevalent occurrence in organisations, and workers are encouraged to create and retain the ownership to which they feel connected. Managers should also recognize that it is inevitable and common for workers to participate in certain psychological habits of possession, which further strengthen their remaining motives, to allow managers to do so, or at least not to encourage them. The second main managerial assumption implied by our research is that the understanding of strong working relationships will reinforce the bond between the members of the organisation and their organizations. Managers can also aim to develop friendly, closely intimate relationships between workers at the workplace through the introduction of formal or informal procedures to promote further interpersonal contact.

REFERENCES[1] Avey, J.B., Avolio, B.J., Crossley, C.D., & Luthans, F. (2009). Psychological ownership:

Theoretical extensions, measurement and relation to work outcomes. Journal of Organizational Behaviour, 30(2), 173–191.

[2] Boxall, P., & Purcell, J. (2011). Strategy and human resource management (3rd ed.). New York: Palgrave Macmillan.

[3] Bozeman, D.P., Hochwarier, W.A., Perrewe, P L., & Brymer, R.A. (2001). Organizational Politics, perceived control, and work outcomes: Boundary conditions on the effects of politics1. Journal of Applied Social Psychology, 31(3), 486–503.

[4] Honours Student Olivia Gialuisi (2011) Employee retention practices in small businesses: A proposed study, Small Enterprise Research, 18:2, 152-154.



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[5] Cardon, M.S., & Stevens, C.E. (2004). Managing human resources in small organizations: What do we know? Human Resource Management Review, 14(3), 295-323.

[6] Chen, X.P., & Chen, C. (2004). On the intricacies of the Chinese guanxi: A process model of debates. The Academy of Management Annals, 4(1), 317–357.

[7] Chen, X.P., & Peng, S. (2008). Guanxi dynamics: Shifts in the closeness of ties between Chinese co-workers. Management and Organization Review, 4(1), 63–80.

[8] Davies, R. (2001). How to boost staff retention. People Management, 7, 54–56.

[9] Dess, G.G., & Shaw, J.D. (2001). Voluntary turnover, social capital, and organizational performance. Academy of Management Review, 26(3), 446–456.

[10] Judge, T.A., & Kammeyer-Mueller, J.D. (2011). Job Attitudes. Annual Review of Psychology, 63, 341-367.

[11] Kilduff, M., & Brass, D.J. (2010). Organizational social network research: Core ideas and key meta analysis of co-worker effects on perceptions, attitudes, OCBs, and performance. Journal of Applied Psychology, 93(5), 1082–1103.

[12] Kraut, J. & Korman, P. (1999). Evolving Practices in HRM. San Francisco: Jossey-Bass.

[13] Maertz, C.P., & Griffeth, R.W. (2004). Eight motivational forces and voluntary turnover: A

[14] Morrison, R. (2004). Informal relationships in the workplace: Associations with job satisfaction, organizational commitment and turnover intentions. New Zealand Journal of Psychology, 33, 114–128.

[15] Mossholder, K.W., Settoon, R.P., & Henagan, S.C. (2005). A relational perspective on turnover: Examining structural, attitudinal, and behavioural predictors. Academy of Management Journal, 48(4), 607–618.

[16] Nesselroade, K.P., Beggan, J.K. & Allison, S.T. (1999). Possession enhancement in an interpersonal context: An extension of the mere ownership effect. Psychology & Marketing, 16(1), 21–34.

[17] Pierce, J.L., Kostova, T. & Dirks, K.T. (2001). Toward a theory of psychological ownership in organizations. Academy of Management Review, 26(2), 298–310.

[18] Rousseau, V. & Aubé, C. (2010). Social support at work and affective commitment to the organization: The moderating effect of job resource adequacy and ambient conditions. The Journal of Social Psychology, 150(4), 321–340.

[19] Settoon, R.P., & Mossholder, K.W. (2002). Relationship quality and relationship context as politics, perceived control, and work outcomes: Boundary conditions on the effects of politics1. Journal of Applied Social Psychology, 31(3), 486–503.

[20] Storey, D.J., & Greene, F.J. (2010). Small business and entrepreneurship. Essex: Pearson Education.

[21] Tett, R.P., & Meyer, J.P. (1993). Job satisfaction, organizational commitment, turnover intention, and turnover: Path analyses based on meta-analytic findings. Personnel Psychology, 46(2), 259–293.

[22] Van Dick, R., Christ, O., Stellmacher, J., Wagner, U., Ahlswede, O., Grubba, C., Hauptmeier, M., Höhfeld, C., Moltzen, K., & Tissington, P.A. (2004). Should I stay or should I go? Politics, perceived control, and work outcomes: Boundary conditions on the effects of politics1. Journal of Applied Social Psychology, 31(3), 486–503.

[23] Wagar, T.H. & Rondeau, K.V. (2006). Retaining employees in small and medium-sized firms: Examining the link with human resource management. Journal of Applied Management and Entrepreneurship, 11(2), 3-16.


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15

An Empirical Study on Impact of Dividend Announcement on the Top Three Market Cap

Company’s Stock Prices in BSE Sensex

Shikha Gupta1, Shlok Pimpalkar2, Sonal Gupta3 and Nikunj Patel4

1,2,3,4Institutе of Managеmеnt, Nirma Univеrsity,Ahmеdabad.ABSTRACT

The purpose of this paper is to determine the impact of dividend announcement on the stock prices of the company. This paper investigates existence of abnormal returns on the window of 29 days i.e. 14 days before and after the date of announcement including the announcement day. The sample is drawn from the top three companies listed in BSE based on the Market Capitalisation as on March 31, 2020 that have announced the dividend over the period of April 01, 2016 to March 31, 2020. The abnormality of return is examined using discriptive statistics and t-test of pre and post data of average return. The means of return founded by t-test shows that there is no significant difference in the proceedings before and after the date of announcement for Reliance Industries Ltd, Tata Consultancy Services Ltd and Hindustan Unilever Ltd. There was not much change in the average return just before and after the date of announcement. Further research can be extended considering different parameters of the Indian Market. Also, industry wise research can be undertaken for the exploration. This research will help investors in understanding the declaration impact and bringing transparency in the price changes of the stock market.

Keywords: Dividend Announcement, Bombay Stock Exchange (BSE), Impact of Dividend, Abnormal Return

INTRODUCTIONThe Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. There was a group of 22 informal stock brokers who used to conduct their meeting under the banyan tree in front of the Town Hall of Bombay in mid 1850s. These stockbrokers then decided to organize their meetings formally and were recognized as ‘The Native Share and Stockbrokers Association’ which was then recognized as BSE. It is now known to be a world’s fastest stock exchange which is having a speed of just six microseconds. It helped all the brokers in terms of giving them a transparent and an efficient market where they can trade equity derivatives, interest rate derivatives, equity debt instruments, stock lending and borrowing, currency derivatives and mutual funds in its own trading platform. All the benchmark in the stock market are set by the BSE’s approves equity index i.e. the S&P BSE SENSEX. Currently, the BSE is functioning as a decentralized platform where many directors



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are appointed to manage this exchange. BSE is said to be a heart of Mumbai which plays a vital role in controlling the economy of India.

The study conducted focuses on how the stock prices of a company fluctuates when they announce their new final dividend. Basically, the logic behind fluctuation is that in the lure of getting dividend, investors buy stock which increases its price in the market due to the increase in demand. The process starts after the company announces its ex-date which is the last for shareholders and investors to buy the shares of the company. Because the investors know they would be getting dividend after purchasing stock so they buy a premium. And till the ex-date approaches the price of the stock rises. The rise in price is usually equal to the amount of dividend to be distributed. It is also possible that the rise in stock price is more than the amount of dividend announced. Thereafter the stock price is reduced so that the new investors can purchase the shares as they would be reluctant to pay premium because they won’t be getting dividend for the same. This relationship between dividend and stock price lead the price of the shares to fluctuate in the market when the company announces its dividend distribution date.To observe this impact practically, we have decided to take top three companies based on Market Capitalisation as on March 31, 2020 i.e. Reliance Industries Ltd, Tata Consultancy Services Ltd and Hindustan Unilever Ltd. Market capitalization refers to the total value of a company’s outstanding shares which is calculated by multiplying the total number of outstanding shares of a company with its current market price per share. This value is useful in determining the size of the company for the investors along with the risk.Reliance Industries Ltd headquartered in Mumbai was founded by Mr. Mukesh Ambani in 1973. The company is involved in textile, energy, natural resources, retail, telecommunication and petrochemical sector. Reliance Industries Ltd has the highest market cap of 7,06,03,579 lakhs.Tata Consultancy Services Ltd headquartered in Mumbai was founded by the divisions of Tata Sons in 1968. It is an information technology consulting company that provides IT services worldwide. It stands second in list of top companies based on market cap at 6,85,22,297 lakhs.Hindustan Unilever Ltd headquartered in Mumbai is a subsidiary of Unilever which is a British-Dutch company. It was founded in 1933. The company is involved in Indian consumer goods that include products such as personal care products, foods, water purifier, beverages, cleaning agents and other fast-moving goods. The company has a market cap of 4,97,58,412 lakhs and stands third in the list of top companies based on market capitalisation.

LITERATURE REVIEWThere is no consensus in the published literature on the impact of dividend announcements on global stock prices, but there is mixed evidence of the effect of dividends. Several papers have analyzed the effect of dividend announcements on stock prices, and much research has been on increasing / decreasing information about dividend announcements and stock movements (Petit, 1972).


An Empirical Study on Impact of Dividend Announcement on the Top Three Market Cap Company’s Stock Prices in BSE Sensex

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Dividend signalling theory proposes that when a company announcement pertaining to a growth in dividend pay-outs is made, it indicates positive future prospects. This theory is directly tied to game theory; where, managers with good investment potential are more likely to signal. Poterba and Lawrence (1984) developed a “traditional view” of dividends, which highlights that dividends signal some private information about profitability; and stock prices tend to rise when a company announces an increase in dividend pay-outs and fall when dividends are to be decreased. They also concluded that there is no apparent difference between the hypothesis that an increased dividend conveys good news and the hypothesis that the dividend increase is good news for investors.Woolridge (1983) examines the effect of both increase and decrease in dividend change announcement on stock prices. He observed that the announcement pertaining to increase in dividend generated positive returns and information pertaining to decrease in dividend led to decrease in stock prices. The author accredited the movement of stock prices to dividend signalling theory and wealth transfer hypothesis.Rao (1994) looked at appropriate announcements related to dividends, bonus issue and public issue for companies listed on the Bombay Stock Exchange between 1988 and 1989. He said stock prices had risen and continued to rise two days before the official announcement of the dividend increase. In the event of a bonus announcement, the share price will be adjusted on the day of the announcement. When the correct issue was announced, the amendment was delayed one day and continued into the next day. He attributed the stock reaction to the signal theory.Travlos and Vafeas (2001) studied the impact of rise in cash dividend and bonus issues on stock prices. The study was conducted during the period of 1985-95. The study exhibited that the stock prices increased with rise in cash and in stock dividends announcements. They concluded the existence of information asymmetry and the dividend payout policies and dividend signalling theory attempts to bridge this information asymmetry gap.Gupta et al. (2012) examined the stock price reaction to 65 dividend announcements (increases) by 28 companies during the period of 2006-09 which were listed on BSE 30 Sensex. The study finds that stock prices are consistent with the increase in dividend announcements and that dividend announcements have a signal nature. The survey also found that the Indian stock market was ineffective.Pradhan (2014) studies the impact of dividend announcements on stock prices from 2009 to 2011. The results demonstrated that stock prices would rise following the announcement, but the rise in stock prices is primarily due to the market conditions and not dividends. Changes in stock prices do not reflect dividends. After the dividend is announced, RCA is considered positive in the long run.Gordon (1959), Arif and Finn (1986), Stevens and Jose (1992) found a significant positive effect on dividend advertisements. Mark et al. (1984) investigated the valuation effect of stock dividend announcements. Accordingly, upon the announcement, the company’s share price generally rises. Ball & Brown (1968) Notified changes after profit notice. This shows that stock prices tend to fluctuate over days or months. On the basis of their research, they found that the investors were making extraordinary



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profits at the time of their annual reports and earnings. We saw three different models.

• Profit and dividends after the end of the market.• Dividends declared before the market closed and dividend announcements after

the market closed.• Announcing profits before the market closes and announcing profits after the

market closes.Based on the extraordinary earnings, they gathered evidence to support the general premise, indicating that investors were paying consideration to the relative timing of the announcement during the day. (Denis & Atulya Sarin, 1994) had come to a conclusion that would explain the positive relationship between the announcement of dividend fluctuations and the reaction of stock prices. (Obaidullah, 1992) examined the efficacy of the Indian stock market by evaluating the impact of dividend announcements using the event research method. He points out that all the stock price adjustments made by the announcement took place long before the announcement itself, and prices fell during the coming period. The study also found that market reaction has nothing to do with the size of dividends. Plus, we saw extraordinary earnings when we ran out of stock without bonuses three months after our announcement date. Some researchers found evidence of apathy in dividend announcements (Pichardo & Bacon, 2009) and (Mahadevan & Saravanakumar, 2011). Some of the researchers found indifferent evidences on the dividend announcement (Pichardo & Bacon, 2009) and (Mahadevan & Saravanakumar, 2011). (Kang & Diltz, 2000) inspected the stock returns of 175 divestitures and 21 acquisitions between 1990 and 1994 and found abnormal positive returns on and before the announcement date, that signalled information flow have already entered in the market.Stock returns didn’t change much, but the announcement affected stock prices and the t-test score rose dramatically. On the contrary, (Loughlin, 1982) and (Easton & Sinclair, 1989) negatively affected dividend announcements. Md. Hamid Uddin (2003) surveyed 137 dividend payers listed on the Dhaka Stock Exchange, and found that investors had not received any comments on the dividend announcement, and 30 days before the dividend announcement, the shareholders were close to arriving. I was losing 20%. Bacon (2009) investigated the impact of Lehman’s bankruptcy declaration on 15 securities companies. He examined risk-adjusted returns before and after the announcement and found that stocks had fallen and continued to decline for several weeks, 24 days before the announcement.Miglani (2011) has studied the impact of right issues on the returns of selected Indian companies. She has selected 32 right issues published during year 2005 to 2010. The study evidences the presence of significant abnormal returns around the announcement date and estimated abnormal returns using OLS. Mohanty & Panda (2011) examined the reaction of market on the announcement of share buyback by the companies. They conducted the study on 25 companies to validate semi strong form of EMH. The public announcement dates of buying back of shares were taken and tested to analyse the market reaction. Salameh & AlBahsh (2011) studied Semi-strong level of Palestine Stock Exchange event study on Mandatory disclosure. They have rejected the semi-strong form of efficiency based on significant OLS



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regression and paired sample t-test. Sujith & Halageri (2011) have studied bonus announcements for a period 1996 to 2011; they have taken stock prices - 30 to + 30 days to test the abnormal returns before and after the announcement date. The results indicate that Indian stock market (NIFTY) is not perfectly efficient and there is significant abnormal return during the announcement period.

The corporate events announcement and information helps in validating the semi-strong form of efficient Market Hypothesis as this information is publicly available. In developed countries, various researches have been undertaken to validate the EMH with respect to corporate events and announcements like bonus issue, rights issue, mergers and dividend & earnings announcement. In India, very few researches have been done to test the efficiency of stock market with respect to dividend announcement for large market capitalization companies. Hence, this study attempts to test the semi strong efficiency of Indian stock market by contemplating the dividend announcement information of three selected companies.

METHODOLOGY AND DATA DESCRIPTION

sCope of the stuDy This study has been done to analyse the informational efficiency of the Indian stock market in the semi-strong form of efficient market hypothesis. The scope of the study is limited to the dividend announcement of the top three Market caps companies from BSE Sensex, with benchmark taken as March 31, 2020. The study covers four financial years ranging from Apr 01st 2016 to Mar 31st 2020. Corporate event announcements have always had an impact on the stock prices which is a matter of interest to the investors. The information and trends related to the corporate announcements can be used for the valuation purposes. The stakeholders of this information are mainly investors, fund manager, analysts, rating agencies, market regulators, policy makers, researchers and the general public. This paper attempts to study the impact of dividend announcement on stock prices in India.

stAtement of the problem

Dividend is basically the rate of returns that an investor earns on the investment made on a particular security. Blue chip companies (Large Market Cap companies) have always displayed excellent dividend history. Every time an organization issues dividend, it sends across a message to the investor community and the concerned stakeholders about the financial health (particularly the cash flows) of the organization. Many researchers have come to a conclusion that dividend announcements always carry a positive outlook for the company. This has always been an underlying assumption. The specific question is how quickly the dividend announcement actually affect the stock prices. This paper tries to test the effect of dividend announcement on the stock prices.

the sAmple, sAmpling size AnD sourCe of the DAtA

Sample has been taken from the top three companies in terms of market capitalization as of March 31st 2020. The data is taken for a period of four financial year ranging from April 2016 till March 2020. The dataset of the daily stock prices



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of the BSE index, the Companies index and the dividend dates has been taken from BSE website, Yahoo Finance, InvestingIndia.com and Money control.The dividends that has been considered are the annual final dividends. The announcement dates have been taken as the benchmark for the +14 and -14 window range. The data has been analysed for descriptive statistics, t-test and abnormal returns.

Table 1: The Sample companies with date of Announcement of Dividend (DD/MM/YYYY)

2016-17 2017-18 2018-19 2019-2020RIL 25-04-2017 27-04-2018 18-04-2019

TCS 18-04-2017 24-04-2017 19-04-2018 12-04-2019HUL 09-05-2017 18-05-2017 14-05-2018 03-05-2019

In FY 2016-17, Reliance Industries Ltd. has not declared any final dividend.

obJeCtives of the stuDy • The primary objectives of this study are: • To establish a relationship between the stock prices and the announcement of

dividend of the top three market capitalization companies.• To analyse the abnormal returns immediately before and after the announcement

of the dividend, in our case the window is of 29 days (+14 and -14 days)• To study the agility with which the market indices of these companies adjust to

the corporate announcements.

tools useD for AnAlysis

The different tools used for analysis are: Descriptive Statistics and t test for significance. Different formula used for calculating the returns are as follows:

Daily Returns

The daily lognormal returns of the stocks have calculated based on the formula:

𝑹𝑹𝒕𝒕 = 𝒍𝒍𝒍𝒍 ( 𝑷𝑷𝒕𝒕𝑷𝑷𝒕𝒕−𝟏𝟏

)

Where:

Rt = returns for the day t

Pt = price for day t

Pt-1 = price for the previous working day

Expected Returns E(R)

Expected returns have been calculated by using CAPM (Capital Asset Pricing Model)

𝑬𝑬(𝑹𝑹) = 𝑹𝑹𝒇𝒇 + 𝜷𝜷(𝑹𝑹𝒎𝒎 − 𝑹𝑹𝒇𝒇)



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Where:Rf = risk free return rate ß = beta of the stockRm = market return (It has been calculated by taking S&P BSE as a benchmark).• The yield has been taken on 10 year bonds as risk free return rate on the

date of dividend announcement.

Abnormal Returns (AR)

Abnormal returns have been calculated as the difference of actual daily returns and expected returns.

𝑨𝑨𝑨𝑨 = 𝑨𝑨𝒕𝒕 − 𝑬𝑬(𝑨𝑨𝒕𝒕)

Cumulative Abnormal Return (CAR)

It is the cumulative value of abnormal returns on daily basis

𝑪𝑪𝑪𝑪𝑪𝑪𝒕𝒕 = ∑ 𝑪𝑪𝑪𝑪 𝒕𝒕

DesCriptive stAtistiCs

Descriptive Statistics is used to analyse the significant difference in returns before and after announcement of dividend. The calculation of mean values and standard deviations of returns is performed to understand any significant difference in returns and volatility of stock prices due to dividend announcement.

Table 2: Descriptive Statistics

Year Security RIL TCS HUL

2016-17

Mean (Pre) - -3.762 -2.392Mean (Post) - -3.865 -2.183

SD (Pre) - 1.147 0.793SD (Post) - 1.230 1.131

2017-18

Mean (Pre) 3.111 -6.123 1.564Mean (Post) 2.017 -5.657 1.815

SD (Pre) 1.638 0.932 1.194SD (Post) 0.872 0.892 1.399

2018-19

Mean (Pre) 5.189 -5.241 -3.721Mean (Post) 4.653 -5.417 -3.370

SD (Pre) 1.049 1.339 1.280SD (Post) 1.270 2.286 1.464

2019-20

Mean (Pre) 4.716 -1.275 -3.385Mean (Post) 4.833 -0.638 -3.333

SD (Pre) 0.859 1.319 0.682SD (Post) 1.054 1.831 1.113

Since RIL has not announced final dividend for the year 2016-17, descriptive statistics values are missing.



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According to the descriptive statistics, there are no significant differences in pre- and post-announcement of dividend in prior and post 14 days. There is no significant difference between before and after returns in stock prices over the period of 29 days.

T test of Significance

t test: paired two sample for means for the analysis and understanding of significant mean differences before and after the announcement of dividends. In order to check the relationship of dividend on stock prices and difference in stock prices, the hypothesis are as follows:H0: There is no significant difference of pre and post announcement of dividend on stock prices returns.H1: There is significant difference of pre and post announcement of dividend on stock prices returns.

Table 3: T-Test Statistics

Company 2016-17 2017-18 2018-19 2019-20RIL t stat - 2.224 1.098 -0.282

p value - 0.045 0.292 0.783TCS t stat 0.217 -1.373 0.241 -0.955

p value 0.832 0.193 0.813 0.357HUL t stat -0.718 -0.425 -0.787 -0.168

p value 0.485 0.678 0.445 0.869This test of significance is conducted at 0.05 level of significance.

According to the t test, the null hypothesis is not rejected. In other words, it can be concluded that there is no significant relationship between returns before and after the date of dividend announcement. It can be concluded for most of the companies at 5% level of significance that were part of the study. There has been no significant impact on the share price pre and post 14 days of dividend announcement.

GRAPHICAL REPRESENTATIONThe graphs depict the graphical presentation of pre and post abnormal returns of the dividend announcement for a window of 29 days. These graphs indicate that there is no substantial difference between pre and post returns.

Fig. 1: Graphs for the year 2016-17 (TCS and HUL)



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Fig. 2: Graphs for the Year 2017-18 (RIL, TCS and HUL)



CONCLUSION

The study “Impact of dividend announcement on stock prices of top three market cap companies” gives findings about the impact of dividend announcement on the company’s share price. To sum up, there is no existence of significant ARs on event day during any period of dividend announcement under study. The graphical representation of pre and post announcement AR does not specify and particular trend in the market price of selected stocks. The results of paired t-test for means have shown that there are no substantial differences in the share price during the period of study. This study helps in analysing Indian market on the basis of its efficiency and its volatility related to any announcement. This study validates the efficiency of Indian stock market as there are not significant changes in average returns before and after the announcement for selected stocks. For the further examination of impact, industry-wise study can be carried out for the selected events. Econometric models and multiple regression models can be used to measure the statistical significance of the abnormal returns.



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REFERENCES[1] Patel, Prof. Nikunj. (2014). Impact of dividend announcement on the stock prices of Indian

companies: an empirical evidence. Elk Asia pacific Journal of finance and risk management, 5(2), 11.

[2] Gordon, M.J. (1959). Dividend, Earning, and Stock Prices. The Review of Economics and Statistics, Vol 41 (2), pp. 99-105.

[3] Easton, S.A., & Sinclair, N.A. (1989). The Impact of Unexpected Earnings and Dividends on Abnormal Returns to Equity. Accounting & Finance, 29, 1-19.

[4] Mahadevan, & Saravanakumar (2011). Dividend Announcement Impact on Indian Bourses, International Journal of Enterprise and Innovation Management Studies (IJEIMS), Vol 1(3), pp. 1-11.

[5] Neetu Mehndiratta & Shuchi Gupta (2010). IMPACT OF DIVIDEND ANNOUNCEMENT ON STOCK PRICES International Journal of Information Technology and Knowledge Management July-December 2010, Volume 2, No. 2, pp. 405-410.

[6] Ramesh Chander & Renuka Sharma & Kiran Mehta, Dividend Announcement & Informational Efficiency: An Empirical Study of Indian Stock Market, ICFAI Journal of Finance, March 2006.

[7] A Study on The Impact of Dividend on Stock Prices, International Journal of Management Studies.

[8] Parul Bhatia, L. (December 2010). A Study of Dividend Announcements on Stock Return of Popularly Traded Companies in India. APJRBM, 1(3).

[9] Thirumalvalavan, & Sunita. (2005). Share Price Behaviour around Buy back and Dividend Announcements in India. Indian Institute of Capital Markets.

[10] Chakraborty, Nilanjana and Chiranjit Mukhopadhyay (2010). “Stock Price Response to Firm Specific Events: Indian Evidence”, South Asian Journal of Management; Vol. 17 No. 3, pp.38-52.

[11] Ariff, M., & Finn, F.J. (1986). Announcement Effects and Market Efficiency in a Thin Market: An Empirical Application to the Singapore Equity Market. Asia Pacific Journal of Management, 6, 243–267.

[12] Loughlin, P. (1982). The Effect of Dividend Policy on Changes in Stockholders’ Wealth-A Ph.D Thesis. USA: Graduate School of Saint Louis University.

[13] Cheung, J.K., & Yau, J. (1995). Price Effects of Relative Reporting Delay of Same-Day Earnings and Dividend Announcements. Journal of Financial and Strategic Decisions, 8(1).

[14] Fama, E. (1965). The Behavior of Stock Market Prices. Journal of Business, 38, 34-105.

[15] Ogden, J.P. (1994). A Dividend Payment Effect in Stock Returns. Financial Review, 29, 345-369.

[16] Fama, E. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. Journal of Finance, 383-417.

[17] Aamir, M., & Shah, S.Z. (2011, November). Dividend Announcements and the Abnormal Stock Returns for the Event Firm and Its Rivals. Australian Journal of Business and Management Research, 1(8), 72–76.


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16

Antecedents of an Individual Ambidexterity: A Psychological Contract Perspective

Anushree Karani1, Mitesh Jayswal2 and Rasananda Panda3

1,2Sardar Patel University, India 3MICA, The School of Ideas

ABSTRACT

Purpose–Healthcare is a very vital sector in any economy and the employees of the healthcare industry should be treated well. The psychological contract of an individual is shaped by work policies and practices. The current study tried to explore the psychological contract of healthcare employees from the lenses of work practices and how it affects their ambidextrous behavior (Explorative & Exploitative activities).

Design/Methodology/Approach–A descriptive cross-sectional research design was used with snowball sampling where 786 respondents from 6 hospitals were surveyed. The questionnaire was developed with the help of expert opinion taken from HR managers and experts in the domain and AMOS 20 was used for the structural equation modeling.

Findings–It was found that for the employees in the healthcare sector a sense of belongingness has contributed highest in exploration activities followed by work-life balance, rewards, and managerial support. Work-life balance has contributed highest in exploitation activities followed by a sense of belongingness, teamwork and managerial support.

Research limitations/implications–The study offers important implications for researchers as well as employers of the healthcare sector and highlights the significance of the psychological contract and its fulfillment leads to the ambidextrous behavior of the employees.

Originality/value–There was no prior work that had empirically proved the relationship between psychological contract and ambidextrous behavior. In the study, an attempt was made to identify the work practices offered in the healthcare industry and how that is associated with explorative and exploitive ambidextrous behavior.

Keywords:Employee Work Practice, Social Exchange Theory, Organization Support Theory, Explorative Behaviour, Exploitative Behavior

INTRODUCTIONPsychological contract (PC) has now become an accepted part of the human resource department’s thinking and practice. Irrespective of industry, employees cannot self-reward or self-punish (Kanfer & Karoly, 1972), their expectations are to be met by their employers. This is explained by the phenomenon of the PC.



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Levinson Price, Munden, Mandl & Solly (1962) explained the PC as a series of mutual expectations between the organization and the employee, some of these expectations are held consciously and others are held unconsciously. PCs can be developed from an individual’s interaction with an organization with the help of its human resource (HR) management practices as these HR practices contribute to creating an environment that is expected to be conducive to meet the expectations of the employees. This is in line with the research of Schuler & Jackson (1987) who explained how employees’ behaviors are influenced by high-performance work systems or so-called work practices that act as ‘levers’ to employees’ attitudes in the organizations. Further, various past studies have also contributed to the idea of work practices impacting the PC of employees (Westwood, Sparrow & Leung 2001; Purcell, Kinnie & Hutchinson, 2003; Suazo Martínez, & Sandoval, 2009). Rousseau & Schalk (2000) also argued that organizational culture, employment condition, labor laws, etc. are the factors which influenced the PC of employees. Hence, it can be ascertained that the PC is a multidimensional construct and work practices and policies are the key indicators of developing and shaping the same in the organization (Westwood et al., 2001; and Koene & Van Riemsdijk, 2005).

The research on PC has made substantial progress in documenting the link between PC and various attitudinal and behavioral outcomes (Coyle-Shapiro & Kessler, 2000). The effect of PC developed from work practices should embrace the productive behavior of their employees that act as an aid to organizational success. Thus, the PC should instigate the individuals to do anything to deliver results. This view closely linked to the perspective of behavioral ambidexterity in the organization which is referred to an individual’s efforts towards the simultaneous pursuit of exploration and exploitation on daily basis (Gibson & Birkinshaw, 2004). The roots of ambidexterity can be traced from 1991 when March introduced the concept of exploitation and exploration; where “exploitative activities are associated with aspects such as improving efficiency, implementation and execution and explorative activities are aimed at changing the existing models, experimentation and radically impacting organizational routines” (March, 1991). Ambidexterity at the individual level plays a very important role for the organization to succeed irrespective of structure and size (Swart & Kinnie, 2014) because individuals were engaged in work practices and processes (Scott, 1995; Janssen, van de Vliet, & West, 2004). In this view, it fits healthcare and hospitality organizations where employees were defined as an agent of ambidexterity who has taken the initiatives and are ell aware of the opportunities beyond their jobs (Birkinshaw & Gibson, 2004).

The content of the psychological contract has changed from time to time. Many scholars (Aggarwal & Bhargava, 2009; Freese & Schalk, 2008; Guest, 1998; Rousseau, 1989; Rousseau & Tijoriwala, 1998) have highlighted the need for examining the psychological contract contents “in order to form a satisfactory understanding about the employment relationships” (Herriot et al., 1997, p. 152). These psychological contract content studies focus more on the traditionally perceived obligations of the employees. Moreover, the limited number of studies that have been conducted to examine the psychological contract contents mostly represent the west, leaving



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Asian countries under-represented (for exceptions see Aggarwal & Bhargava, 2009; Bellou, 2007; Truong & Quang, 2007). The current study focused on the Indian healthcare sector which is one of the largest sectors - both in terms of revenue and employment (IBEF, 2019). The healthcare sector in India is growing because of its strengthening coverage, services and expenditure by both public and private players. At the organizational level, the biggest challenge is to deal with the employees and get work done in an effective, proactive and efficient manner. For a developing nation, to explore new ways and exploit the current resources for high-end services is a huge constraint (Tiwari & Herstatt, 2012). There were very few studies conducted on the vital role of PC (from the work practices perspective) as a channel to guide employees’ ambidextrous behavior (Patel, Messersmith, & Lepak, 2013). The current study is an attempt to address the gap by examining the PC acts as an antecedent of employees’ ambidextrous behavior. More specifically, the PC is understood as promises done by employers while recruiting the employees. The past studies have considered factors such as manager/peer support on ambidextrous behavior (Birdi, Allan, & Warr, 1997). But, no studies have speculated the PC from the work practices perspective affects the ambidexterity at the individual level, especially among healthcare employees.

THEORETICAL BACKGROUND & LITERATURE REVIEWThe current study is drawn from social exchange theory (SET) (Blau, 1964) and organization support theory (OST) (Eisenberger, Huntington, Hutchison, & Sowa., 1986). PC is rooted in SET and it suggests that there is a two-way relationship, if there is something offered then there is a quiet pledge to return it equally (Gouldner, 1960; Perugini & Gallucci, 2001). Based on SET, we argue that employees have certain expectations in terms of work environment, managerial support, team-work, rewards, proper role and responsibility, balancing work and life, and feeling of belongingness. But, all these expectations are based on the extent of support the employee gets from the organization. This can be supported with the help of OST theory. OST theory argues that employee observed that their employee’s contribution is valued by the employer and how much care and support they get from their employer (Eisenberger et al., 1986). One, of the important arguments, were managers were seen not only as the individuals but as representatives of the employer (Zagenczyk, Gibney, Few, & Scott, 2011). In this vein, it was argued that OST theory supplements SET theory (Aselage and Eisenberger, 2003). SET theory talks about reciprocal relationships whereas OST theory stresses on socio-emotional relationship which includes care and concern, respect, and value the employees. On this basis, we argue that the employees have expectations from the employer and if their expectations are fulfilled then it leads to ambidextrous behavior.

pC As A multiDimensionAl ConstruCt

The decisive factor for the employment relationship is the extent to which the organizations fulfill their promises (Restubog, Bordia, & Bordia, 2011; Restubog, Zagenczyk, Bordia, Bordia, & Chapman, 2015). PCs are the promises made by the employers/organization in exchange for the efforts taken by the employee



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(Rousseau, 1995). Work practices help in shaping PC (Guest & Conway 2002; Aggarwal & Bhargava, 2009; Uen, Chien, & Yen, 2009). Rousseau (1995) argued that organizations explicitly or implicitly communicate PC by different means. Culture, observation and employee reputation were the implicit means whereas memo, email, mission statements, training, performance review, and benefits are explicit means of communication. Guzzo & Noonam (1994) argued that realistic job previews at the time of hiring the employees develop PC whereas Lucero & Allen (1994) found that when the benefits like healthcare insurance, pensions, etc. are promised, they create PC fulfillment. The most work practices cause the PC like Suzao, Martínez, & Sandoval (2009) argued that apart from routine work practices like recruitment, training, performance appraisal and compensation, employee handbooks can also create psychological and legal contracts. The increasing number of studies have reported PC generated from the work practices such as job content, career opportunity, organizational policy and environment, work-life balance practices, rewards and support from peers and supervisors (Freese, 2007; Freese, Schalk, & Croon, 2008; De Vos, De Stobbeleir, & Meganck, 2009; De Hauw & De Vos, 2010; Lub, Nije Bijvank, Bal, Blomme, & Schalk, 2012, Lub, Bal, Blomme, & Schalk 2016). It was also argued that the multidimensional lens allows studying specific areas of PC and its association with employment outcomes (De Vos & Meganck, 2009).

inDiviDuAl AmbiDexterity

The Factors affecting organizational ambidexterity were given a lot of importance in past studies (He & Wong, 2004; Raich & Birkinshaw, 2008) but very few studies had focused on Individual ambidexterity (Lavie, Stettner, & Tushman, 2010). Mom, Van Den Bosch, & Volberda (2009) pinpointed the individual ambidexterity for managers where, “searching for, discovering, creating, and experimenting with new opportunities” defined as explorative activity and “selecting, implementing, improving and refining existing certainties” defined as exploitative activity. The behavioral orientation of employees for combining the exploration and exploitation activities in a definite period is termed as bi-dimensional constructs of employee/individual ambidexterity (Caniëls & Veld, 2016; Gibson & Birkinshaw, 2004). Individual ambidexterity is a behavioral capability wherein an employee is engaged and rotated between the paradoxical task elements instead of being just a psychological attribute (Miron-Spektor, Gino, & Argote, 2011). The different short-run exploitative activities were utilizing the current knowledge and skills for improving efficiency and effectiveness. Whereas in explorative activities for new products and process innovation for meeting the competitive solutions and behaviors which were required for the employees to develop new skills or knowledge for adapting to the present routines. Both the exploration and exploitation activities were for having learning-related activities (Kauppila & Tempelaar, 2016). From all the levels, an individual level is said to be the level where ambidexterity is most difficult to achieve (Gupta, Smith, & Shalley, 2006). Employees need to get the intellectual, social, physical capacity, will, strength, ability to produce, carry out, and refine current rules and routines for getting the balance the activities of exploration and exploitation activities and interpret the environment which can make them ideal employee who can be an entrepreneur in



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exploring new rules and routines within an organizational environment (Holmqvist & Spicer, 2012). In this vein, the job roles, practices and policies foster motivation for the employees and leads to the ambidextrous behaviour.

Empirical research on ambidexterity to date can be divided into three levels: organization, group and individual. There are few studies which addressed antecedents of ambidexterity such as intrinsic motivation (Kao & Chen, 2016; Mom et al., 2019); cognitive, information, and social individual capabilities (Lee & Lee, 2016); self-efficacy (Kauppila & Tempelaar, 2016; Mom et al., 2019; Patterson et al., 2014); attitudes and orientation of individuals (Lam et al., 2019; Yu et al., 2018) handling work stress and trust building for social support (Zhang et al., 2019); or psychological empowerment (Garcia et al., 2019). Most ambidexterity studies have centered on the organization level. This level includes areas such as strategy and structure. The group level focuses on the social work context. Our research explores the individual level, which is a primary concern for employees of healthcare sector. There is a total lack of research into ambidexterity at an individual level of analysis. This is evidenced by Turner et al. (2013), who demonstrated that the exploration of ambidexterity at individual level is sparse. It is our aim to fill this gap by empirically exploring individual ambidexterity antecedents.

pC AnD inDiviDuAl AmbiDexterity

To sustain in today’s dynamic era, organizations need to be ambidextrous. Organizations need to exploit existing resources and explore new products and services (Tushman & O’reilly, 2002). To make the organization ambidextrous, there should be different kinds of employment relationships (Litz & Klimecki, 2005). The previous studies on ambidexterity were more talking about how the HR practices can create an ambidextrous organization which is a macro-level analysis but how the PC leads to ambidextrous behavior is not yet studied. Cegarra-Navarro, Jiménez-Jiménez, García-Pérez, & Del Giudice (2018) found that managerial support is necessary to nurture an environment of explorative and exploitative activities. Prior studies indirectly talk about PC and ambidexterity at the individual level. For example, work context shapes the relationship between ambidexterity and performance outcomes (Garaus, Wagner, & Kummer, 2015). Patel et al. (2013) suggested that a high-performance work system i.e. different work practices promote ambidexterity at an individual level. Garaus et al. (2015) highlighted that work practices were able to convert explorative and exploitative activities into innovative work behavior and hence it can be proved that when the organization was able to fulfill their promises then ambidextrous behavior at an individual level can be achieved. Based on this reasoning, first is a PC i.e. generated from work practices can generate ambidextrous behavior. Second, work practices like role and responsibility, the opportunity for learning and development develop their professional skills and fulfillment of these can make the employee ambidextrous. Hence, we propose that the way work practices were perceived by the employees i.e. their PC can inculcate the ambidextrous behavior at an individual level. The majority of the previous research which talks indirectly about PC and ambidexterity



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is carried out in the context of a developed nation, where the work environment and implementation of work practices are quite different. Thus to address this gap, we proposed the following hypothesis;H1a: PC (Managerial Support, Rewards, Role and Responsibility, Sense of Belongingness, Teamwork, Work Environment, Work-Life Balance) is positively related to the explorative ambidextrous behaviorH1b: PC (Managerial Support, Rewards, Role and Responsibility, Sense of Belongingness, Teamwork, Work Environment, Work-Life Balance) is positively related to influence the exploitative ambidextrous behavior

METHODOLOGY

reseArCh Design

The current study has followed the quantitative research approach and descriptive research design. The descriptive research design aims to find the underlying relationships amongst the variables under study.

sCAle Development of psyChologiCAl ContrACt (through work prACtiCes)First of all, we reviewed the extant literature and conducted a phenomenological study (structured interview of 10 individuals who were working at the capacity of managers in the healthcare sector). At the end of the study, we were able to generate 47 items.The study requires the content as well as face validity of the generated items (Netemeyer et al., 2003). Hence, content validity and face validity were established by incorporating the feedback from five experts. Three experts working as the faculty members of human resource management and organizational behavior (content validity) and two HR managers (face validity) were invited. The experts were asked to raise any concerns pertaining to items mentioned in the scale. At the end of this exercise, 40 out of 47 items were retained while the remaining items were refined in accordance with the suggestions received from the experts.According to Clark and Watson (1995), the scale development process has several stages. At first, the pool of items were modified as per the experts’ suggestions. On the 100 sample size, the first quantitative study was performed. To achieve this, the respondents were pulled from the relevant targeted population. To mitigate the requirement of sample representativeness, a hundred respondents who have experience of at least five years were qualified as respondents of this study. The research followed the judgmental sampling method. The respondents were familiarized with the concept of the psychological contract prior to the data collection. The data was collected using the 5-point Likert scale. The responses were evaluated by using 40 items that describe the perceived obligations of the employer during a pandemic. Eleven items were discarded after performing EFA. Hence, the final scale of 29 items was confirmed for the final study.For the final study, we have identified the 6 organizations (hospitals) based on their human resource strength and its area of operations. Non-probability snowball sampling was adopted. In the current study, 1550 questionnaires were floated and



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803 came back, out of which some of the questionnaires were having respondent’s errors which were discarded. The final sample size was 786 healthcare sector employees working at different capacities.

meAsures

The current study has adopted a 5-point Likert scale, ranging from Promises not fulfilled (1) to Promises fulfilled (5). EFA confirmed seven variables; role and responsibility, rewards, managerial support, work environment, work-life balance, teamwork and aid creating a sense of belongingness. The questionnaire also included demographic variables like gender, age, and category like support, admin, nursing, paramedical, etc. For individual ambidexterity work done by Swart, Turner, Van Rossenberg, & Kinnie (2019); Lubatkin, Simsek, Ling, & Veiga (2006); and Tiwana (2008) were reviewed and scale has been developed. Analysis has been done with the help of SPSS and AMOS 20.

DATA ANALYSIS

reliAbility To assess the reliability of the used scales Cronbach’s alpha values were derived. (Nunnally, 1978) indicated an admissible value above 0.7 for all variables that were studied. Identification of the need for factor analysis as a necessity was done by performing Kaiser Meyer-Olkin (KMO) and Bartlett’s test for Sphericity. Significance was established by values 0.966 for KMO and p=0.000 by Bartlett’s test Adequacy was indicated by a KMO value between 0.8 and 1. Equal variances across sample populations was indicated by a significant Bartlett’s test. Acceptance of factor loading values greater than 0.50 established validity as a consequence of exploratory factor analysis (EFA).

Common methoD biAs AnD non-response biAs

For this study, data has been collected through structured questionnaire only, therefore it became imperative to check whether the data was free from common method bias or not. In order to achieve this, Harman’s single factor test was conducted, and a single factor accounted for 40% of the difference. This concluded that the results were free from common method bias (Podsakoff et al., 2003). Additionally, there was no difference between the early and late respondents to the study, and so it was proposed that there was a lack of response bias (Armstrong & Overton, 1977).

meAsurement moDel Next, the confirmatory factor analysis (CFA) was performed by using maximum likelihood estimation, and the model demonstrated an acceptable fit. Two items from WE scale was removed due to lower loadings. The recommended fit indices (χ2= 2279.215, df=552, CMIN/DF=4.12, CFI=0.914, GFI=0.900, TLI=0.901, NFI=0.890, RMSEA=0.061 and SRMR=0.0436) were significant and within acceptable limits (Hair et al, 2009).

The next convergent and discriminant validity were examined. The Values obtained for average variance extracted (AVE) and composite reliability (CR) were above 0.5



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and 0.7 respectively, and were thus appropriate (Fornell & Larcker, 1981). We also conclude our constructs display satisfactory discriminant validity, square root of AVE for each construct was greater than the association amongst the constructs and the other constructs (Bhattacherjee & Premkumar, 2004)

struCturAl moDel

Our developed hypotheses were tested using structural equation modeling (SEM) in step-wise fashion leading to a model with all major constructs as SEM can measure the direct effect of latent and observed variables (Hair et al. 1998). The obtained value of the recommended fit indices were χ2=2532.32, df=556, CMIN/DF=4.55, CFI=0.901, GFI=0.901, TLI=0.900, NFI=0.899, RMSEA=0.065 and SRMR=0.045. The results helped establish a good fit between data and the model. SEM was used to test the proposed hypotheses. Out of seven indicators of PC, only teamwork (ß=0.142, p<0.05), work life balance (ß=0.355, p<0.05) and sense of belongingness (ß=0.292, p<0.05) were positively impacting to exploitation. For exploration, sense of belongingness (ß=0.553, p<0.05), Rewards (ß=0.103, p<0.05) and work life balance (ß=0.264, p<0.05) were positively associated.

DISCUSSION AND CONCLUSION

DisCussion & theoretiCAl impliCAtions

The previous section has provided empirical pieces of evidence in support of PC and ambidextrous behavior. The study has a theoretical contribution in many ways. For example; PC theory has been the central theme of the study for western countries (Katou & Budhwar, 2012; Lee, Chiang, van Esch, & Cai, 2018). However, in the Indian context, this study was limited and further, if we narrow down it to the healthcare sector then the relationship between PC and ambidextrous behavior has not been explored. The results were not consistent with the previous research that managerial support is one of the major enablers in creating ambidextrous behavior (Gibson & Birkinshaw, 2004; Rosing, Frese, & Bausch 2011). Those who are working as managers are a strong support system for the exploration and exploitation behavior of other employees (Floyd & Lane, 2000; Taylor & Helfat, 2009). But, in case of employees of healthcare sector managerial support was not contributing to their ambidextrous behaviour. The current study has found that sense of belongingness which comes from the work practices and as PC fulfilled is also the enabler for explorative and exploitative ambidextrous behavior. In the health care sector, a sense of belongingness is a necessity because employees are dealing with the life of an individual. Jansen, George, Van den Bosch, & Volberda, (2008) also suggested that the sense of belongingness caters to the explorative and exploitative behavior of team members. Work-life balance is one of the hot topics for several years. Work-life balance policies were one of the constructs of PC which is very important for the organization (Freese et al., 2008). There were past studies that showcase the relationship between work-life balance and organizational outcomes (Beutell, O’Hare, Schneer, & Alstete, 2019; Armstrong, Atkin-Plunk, &



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Wells, 2015; Lisson, Mee, & Gilbert, 2013). Thus, this caters to the balanced situation where explorative and exploitative activities were present (with the help of work-life balance work practices). Caniels & Veld (2016) suggested that there is an unbalanced situation if explorative activities outweigh exploitative activities or vice-versa. The current study also found that rewards were only contributing to exploration and not to exploitation among healthcare employees. If the employees are given rewards for their improved skill, innovative behavior then it can act as a positive motivation for them (Woodman, Sawyer, & Griffin 1993; Thomas & Velthouse, 1990). In the case of teamwork, exploitation was significant rather than exploration. It is human behavior that while working in a team, employees would like to work only what is assigned and no extra efforts for innovation they would like to put forth. Another exploitative thing also talks about using the existing resources fully. Here, we argue that while working in a team, exploring other things was not possible and employees are working best with the current resources. Role and responsibility and work environment were not at all contributing to ambidextrous behavior. It was found when HR managers were asked how they assign roles and responsibilities? They said that “they want their nurses and other staff to be multitalented and they assign a role with fewer specifications and rotation will be there”. And employees were unhappy with these practices which lead to an insignificant impact on role and responsibility as well as the working environment. Overall it was found that managerial support, sense of belongingness and work-life balance caters to the ambidextrous behavior among the healthcare employees.

prACtiCAl impliCAtions

An employee’s role in the organization should be in line with organizational goals and due to complex task demands the ambidexterity at individual level is getting more attention (Parker, 2014). In this vein, the study has multiple implications for practitioners. The scale items are developed in such a way that they are easily measurable and comprehensible. The study has multiple implications for practitioners. First, the study provides a list of obligations that employees perceive from their organizations. The measure will be highly relevant to the practitioners as it covers two dimensions of the psychological contract scale:first, it allows the HR manager to understand the employees’ expectations from the organization, and second, the findings from the studies also highlight how the revised psychological contract has an impact on the ambidextrous behaviour among the healthcare employees. For managers results suggest that supporting the employees and providing work-life balance will lead to ambidextrous behaviour. For employees the results suggest that to strengthen ambidextrous behaviour, individuals should follow a specific learning orientation that includes expertise in their work by expanding the scope and depth of their proficiency and capability. Ambidextrous behavior also leads to proactive behavior and this kind of attitude is much needed in the health care sector. The study pinpoints which HR practices lead to ambidextrous behavior and how the management of hospitals should build their human resource system which leads to ambidexterity in the organization.



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CONCLUSION

The current study has explored the relationship between PC and individual ambidextrous behavior. Ambidextrous behavior was divided into explorative and exploitative activities. During the interaction with HR managers and experts from the healthcare sector, we identified the promises made by them while they were on boarding their employees. Work practices like a good work environment, rewards, managerial support, appropriate role and responsibility, teamwork and colleague support, aid to create a sense of belongingness and policies for work-life balance were found. In exploration activities the most influential factor was ‘aid to the sense of belongingness’ and ‘work-life balance policies’, ‘rewards’ and ‘managerial support’ were the highest contributing work practices for exploitative activities. Findings indicate that to have ambidextrous behavior the organization must help in creating policies that can aid a sense of belongingness. Work-life balance policies were one of the major practices which strike a balance between personal and work life and inculcated ambidextrous behavior Managerial support was equally important in creating ambidextrous behavior among the employees of hospitals as these employees are working in the day and night shifts, holidays and also sometimes with more than 9 hours per day. They psychologically need their superiors to support to work productively and effectively at the workplace.

LIMITATIONS AND FUTURE RESEARCH

Every study has limitations. The limitations of the current study can give directions for future research. First, the study was specific to employees of hospitals only. In future studies, researchers can consider other sectors to test the results of the current study. Second, the study is primarily to understand the direct relationship between PC through work practices and ambidextrous behavior. In future mediation/moderation variables can be studied to understand the direct and indirect impact of PC and ambidextrous behavior. Third, the sample size of the study can be increased in future studies for generalizing the findings of the study. Fourth, the study has not considered demographic variables like age, gender, experience, position, etc. In the future, the effect of control variables can be studied. Fifth, the current study has adopted the descriptive method. In the future, a longitudinal study could make it possible to explore different time effects on individual ambidextrous behavior and it can make results stronger and justifiable.

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[61] Podsakoff, P.M., MacKenzie, S.B., Lee, J.Y., & Podsakoff, N.P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of applied psychology, 88(5), 879.



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[62] Purcell, J., Kinnie, K., & Hutchinson, R.B., & Swart, J. (2003). People and performance: How people management impacts on organizational performance. London Chartered Institute of Personnel Development.

[63] Raisch, S. & Birkinshaw, J. (2008). Organizational ambidexterity: Antecedents, outcomes, and moderators. Journal of management, 34(3), 375-409.

[64] Restubog, S.L.D., Bordia, P., & Bordia, S. (2011). Investigating the role of psychological contract breach on career success: Convergent evidence from two longitudinal studies. Journal of vocational behavior, 79(2), 428-437.

[65] Restubog, S.L.D., Zagenczyk, T.J., Bordia, P., Bordia, S., & Chapman, G.J. (2015). If you wrong us, shall we not revenge? Moderating roles of self-control and perceived aggressive work culture in predicting responses to psychological contract breach. Journal of Management, 41(4), 1132-1154.

[66] Rosing, K., Frese, M., & Bausch, A. (2011). Explaining the heterogeneity of the leadership-innovation relationship: Ambidextrous leadership. The leadership quarterly, 22(5), 956-974.

[67] Rousseau, D. (1995). Psychological contracts in organizations: Understanding written and unwritten agreements. Sage publications.

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[69] Rousseau, D.M. (1989). Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal, 2(2), 121–139. https://doi.org/10.1007/BF01384942.

[70] Rousseau, D.M., & Tijoriwala, S.A. (1998). Assessing psychological contracts: Issues, alternatives and measures. Journal of Organizational Behavior, 19(SUPPL.), 679–695. https://doi.org/10.1002/(sici)1099-1379(1998)19:1+<679::aid-job971>3.0.co;2-n.

[71] Schuler, R.S., & Jackson, S.E. (1987). Linking competitive strategies with human resource management practices. Academy of Management Perspectives, 1(3), 207-219.

[72] Scott, R.K. (1995). Creative employees: A challenge to managers. The Journal of Creative Behavior, 29(1), 64-71.

[73] Suazo, M.M., Martínez, P.G., & Sandoval, R. (2009). Creating psychological and legal contracts through human resource practices: A signaling theory perspective. Human Resource Management Review, 19(2), 154-166.

[74] Suazo, M.M., Turnley, W.H., & Mai, R.R. (2005). The role of perceived violation in determining employees’ reactions to psychological contract breach. Journal of Leadership & Organizational Studies, 12(1), 24-36.

[75] Swart, J., & Kinnie, N. (2014). Reconsidering boundaries: Human resource management in a networked world. Human Resource Management, 53(2), 291-310.

[76] Swart, J., Turner, N., Van Rossenberg, Y., & Kinnie, N. (2019). Who does what in enabling ambidexterity? Individual actions and HRM practices. The International Journal of Human Resource Management, 30(4), 508-535.

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[78] Thomas, K.W., & Velthouse, B.A. (1990). Cognitive elements of empowerment: An “interpretive” model of intrinsic task motivation. Academy of management review, 15(4), 666-681.

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[80] Tiwari, R. and Herstatt, C. (2012), Assessing India’s lead market potential for cost-effective innovations, Journal of Indian Business Research, 4 (2), 97-115.



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[81] Truong, D.X., & Quang, T. (2007). The psychological contract in employment in Vietnam: Preliminary empirical evidence from an economy in transition. Asia Pacific Business Review, 13(1), 113–131. https://doi.org/10.1080/13602380601033245.

[82] Tushman, M.L., & O’Reilly, C.A. (1996). Ambidextrous organizations: Managing evolutionary and revolutionary change. California Management Review, 38, 8–30.

[83] Uen, J.F., Chien, M.S., & Yen, Y.F. (2009). The mediating effects of psychological contracts on the relationship between human resource systems and role behaviors: A multilevel analysis. Journal of Business and Psychology, 24(2), 215-223.

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Table 1: Discriminant Validity, Cronbach’s Alpha, Composite Reliability (CR), Average Variance Extracted (AVE)

Discriminant Validity Cronbach’s Alpha CR AVE

E1 E2 MS Rew Role SB TW WE WLExploitation 0.845 0.800 0.882 0.714

Exploration 0.751 0.843 0.864 0.907 0.710Managerial Support 0.597 0.631 0.820 0.878 0.911 0.672

Rewards 0.532 0.58 0.592 0.926 0.834 0.923 0.858Role and Responsibility 0.568 0.599 0.542 0.434 0.826 0.882 0.914 0.682

Sense of Belongingness 0.644 0.755 0.586 0.521 0.59 0.887 0.865 0.917 0.787

Teamwork 0.637 0.656 0.607 0.504 0.628 0.650 0.826 0.884 0.915 0.682Work Environment 0.558 0.567 0.644 0.509 0.591 0.559 0.573 0.709 0.832 0.875 0.503

Work Life Balance 0.655 0.679 0.557 0.52 0.544 0.609 0.596 0.503 0.885 0.862 0.916 0.783

Where, E1- Exploitation, E2- Exploration, MS- Managerial Support, Rew - Rewards, Role-Role and Responsibility, SB- Sense of Belongingness, TW - Teamwork, WE - Work Environment, WL - Work Life Balance

CR-Composite Reliability, AVE-Average Variance Extracted


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17

A Comparative Study between Moonlighting and Non-Moonlighting Academicians’

Involvement in their Respective Organisation’s Development—A Pilot Study

Dr. Kaushal Bhatt1 and Jeel Sheth2

1,2Gujarat Technological University, Ahmedabad

ABSTRACT

In this research the study aims to evaluate the involvement of academicians in the activities pertaining to organisational development. The main objective is to compare the efforts made by the moonlighting academicians with non-moonlighting academicians for the development of organisation. It is assumed that the efforts might vary with the level of multiple jobs and also the readiness of the academicians to initiate in development of the organisation. The rationale behind doing such research is that, very limited focus is done in such area of research where the efforts of academicians having moonlighting jobs are analysed.

The research would present extensive literature on concept of moonlighting and its types along with academicians’ role in organisation development. The literature would also describe the probable factors leading to moonlighting, by academicians. The research is based on positivism philosophy and deductive approach is used. The hypotheses are constructed and appropriate statistical tests would be used in order to justify them. The tool used for analysis is survey questionnaire which is to be collected from reasonable number of respondents who are academicians of Gujarat teaching in undergraduate, postgraduate, diploma, etc (academicians teaching for Higher studies). The sampling method is non- probability convenient sampling. Cross-sectional and explanatory design is used for the study whereby it would justify the present aim and objective of the research. The probable outcomes might give a background analysis of the academicians and their favourable situations of moonlighting along with their primary organisation’s job requirement. Factor analysis would be used along with descriptive analysis for presenting a detailed view on academicians’ efforts for organisation’s development along with other jobs. The study would contribute in the field of HRM practices of academicians, opening new horizons and providing future scope of further analysis on such area of research.

Keywords:Academicians, Involvement, Organisational Development, Moonlighting, Non-moonlighting.



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INTRODUCTION

bACkgrounD

The job of Academicians is to teach various age groups on the basis of their subject of specialisation. It is observed on the basis of the observation of researcher that most of the Academicians moonlight. Moonlighting here refers to a concept where the person is involved in more than one job simultaneously and earning a livelihood from multiple jobs in which one is associated. Moonlighting means for example in the present case the Academician involved in the primary job would also be associated in some other job such as part-time carpenter, painter, musician, accountant, etc. So, his/her main employment in this case would be teaching and developing the organisation in which he/she is working but simultaneously they would be having a second job also. The most common reason which is observed for getting involved in multiple employments is the limited source of income from primary job or one single job (Vyas & Pareek, 2015).A person teaching in school in day time and working as a part time tutor after school hours is an example of moonlighting. The commonly identified reasons for the person to moonlight are: extra source of income, use idol time, reduce boredom, test their skill at different jobs, etc. It is like having a secret job part from the principal place of work. The limitation which was observed in various studies in the past also revealed that those employees who performed moonlighting observed too much of fatigue and exhaustion. It is observed in various fields and not only among academicians. In the study by Timothy and Nkwama, (2017) it was observed that nurses were also involved in moonlighting as the salary paid to them was insufficient so they provided personal home visits to required old aged patients or were indulged in other such additional economic activity.

problem stAtement

The Problem for the analysis is that academicians who might be moonlighting i.e. they might be involved additional economic activities would not be involved in organisational development. The reasons might be over burden of other job, lack of time for preparing for primary job which is teaching, fatigue, dilemma of which work should be given priority, etc. Therefore the current research would focus and find whether such issue prevails or not and also analyse the behavioural pattern for organisational development activities of moonlighters and non-moonlighters.Aim of the stuDy

The aim of the research is to compare the involvement of moonlighting Academicians involvement in Organisational development activities with the non-moonlighters and their involvement in developmental activities of the organisation. Also, to analyse various factors affecting their performance in the primary job of teaching and resultantly affecting their productivity.

obJeCtive of reseArCh

The following are the objective of the research:

• To analyse the profiles and experiences of the Academicians

• To know the ratio between moonlighters and non moonlighters


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• To analyse the involvement of the Academicians in organisational development activities and relating it to their moonlighting status.

reseArCh Questions

The following are the research questions:

• What is the impact of involvement level of Academicians whether moonlighting or not?

• Would the moonlighting Academicians leave the second job if paid well in the primary job?

• What the type is of moonlighting academicians i.e. whether they are Blue, Quarter, half or full moonlighting?

DissertAtion struCture

The structure of dissertation would be as follows:

Literature review would be presented in next chapter and extensive information about the moonlighting among academicians from different literatures would be presented. Also, the results from those literatures would be presented which would provide the base for the current research and focus on some significant factors either leading to moonlighting or affecting the performance of the academicians and their involvement level in organisational development.

Research Methodology would present the research paradigm, research approach, research strategy, research method, research design, sampling method, data analysis method, and research ethics. A complete methodology base for the present research would be described.

Analysis section would describe the question wise analysis of the present research questionnaire and present the respondents view. Also, statistical analysis would also be performed in order to identify whether the hypothesis for the research holds true or not.

Discussion would be describing the relationship between the present findings and the literature reviews presented in this area of research. Conclusion would describe that whether the aim of the research has been fulfilled or not.

LITERATURE REVIEW

ConCeptuAl frAmework

The activity of moonlighting has many types as mentioned in the study of Tiwari, (2020). Moonlighting is the situation where in the person is involved in another part time or full time economic activity. The following are the four types of it:

Blue Moonlighting

The employees do this to fulfil their monetary expectations or for getting a sense of satisfaction. The main focus of this term would be that due to their incapacity or lack of knowledge such employees would not perform up to the standard at the second



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job also and they would not get satisfactory returns there too. As mentioned above that it depends on organisations whether to allow their employees to moonlight or not.

Quarter Moonlighting

In this type of moonlighting the reason to moonlight is similar to that observed above that a person who is in need of monetary incentive would indulge in another economic activity. In this the person would invest quarter amount of time in second job as compared to first or primary job. For example, suppose a person is working for 8 hours at primary job than he/she would be working for 2 hours in the second job.

Half Moonlighting

In the Half moonlighting the person would be involved in another job for more than half time as compared to the Primary Job. The person who would wish to live a luxurious life and an extra hand over expending for lavish needs would take up half moonlighting. Half moonlighting also enables employees to save a sufficient amount for their future safety, the employee can also start any new venture in future with the accumulated funds.

Full Moonlighting

The reason behind such kind of rigorous employment is the person feels shallow in comparison to their friends and relatives. Such people feel humiliated and feel insignificant in terms of status and cannot stand the high expectation from others. In order to overcome such feelings they take up such rigorous work and two full time employments to earn that equal extra share and make their earnings exceed the reasonable amount.

professors holDing multiple Jobs

In most of the papers found on the concept of moonlighting it was observed that the basic reason for doing another economic activity was for earning extra source of income. In the study by Urwick & Kisa, (2014) the study was based on the moonlighting of the science teacher. In Uganda the government worked to increase the education among the children but it was observed that most of the science teachers were enrolled in the extra job activities as they earned very less pay. The teachers were not getting sufficient pay for livelihood. This increased the troubles of quality teaching. It was found in the study that due to low pay there was shortage in the supply of teacher. Almost more than half of the teachers agreed that they were employed in more than two schools. Some were working at non teaching jobs apart from the school hours. The respondents who did teaching jobs at both the places of employment had workload of 22 mean lectures from one school and 41 mean lectures from two schools in total. Hence, this results in exhaustion.

It was observed that almost 40% of the people enrol in second job in order to reduce their financial stress (Arora, 2013). The aim of research by Arora, (2013) was to present the concept of moonlighting by working people and also presented it in context of retention. Based on the sample of 36 people it was depicted that teachers



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and professors are the most number of moonlighters. The reasons identified were that they joined second job for trying a different area of work, for additional income, to explore one’s passion, etc. There were many advantage presented of moonlighting like: increase earnings, be creative at other skills, reflect the entrepreneurial skills. The disadvantage is stress, reduces the productivity of employees, hectic work schedules, huge amount of time is blocked in commuting among different jobs, conflicting roles among both the jobs, deteriorating health, increasing stress levels. Efforts should be made by the employer that employees do not involve in the moonlighting activities by changing their time and availability to anytime in 24x7, signing some particular contract, providing them with extra care and facilities so that they do not involve in other jobs, care should be taken that the employees should not moonlight in the competitors firm leaking the secrecy of business.

The employees working in more than one or two jobs might reduce moonlighting when they would receive the job security and reasonable pay scale from one principal place of work. This outcome based on the view of the study presented by (Nunoo et al., 2018) which depicts the relationship between the job security of employees and their moonlighting behaviour. The study is based on Ghana. This paper would support the policy making in Ghana regarding employment. This paper worked on the model presented by Shishko and Rostker (1976) and contributed in the sixth survey data of Ghana. The employment index based on four variables was constructed. The findings depicted that when any employee is given a job security the tendency to moonlight reduced by 0.03. The persons holding more than two or three jobs the tendency to moonlight reduced by 0.0008 from 0.029. Hence, this study concluded that if an organisation wants their employees to be productive and limited up to their job only, then they should provide these employees with job security. It was strange to note from this study that when the job security is given to the employees with more than two or three jobs, it would deteriorate their performance and also they would continue moonlighting as they wish to gain security at other places of employment even. The gap covered here was a very little than required research has been done in such areas for the betterment of the organisations and the health of employees. Reasonable income from one job might solve such issues.

In the study by Brown, Sullivan and Maninger, (2019) the focus was laid on the fact that teachers were forced to take up second employment in order to fulfil the need of their family. They have to bear many issues like money shortage, emotional break downs, exhaustion, etc. which affects to their work output considerably. This study was based on Texas teachers and it was identified from the past research that the teachers used to work 12 hours extra than the regular working hours. It was observed that 33% of the teachers moonlight and 46% thought of leaving the teaching field and it was significant that if given chance 63% teachers would leave moonlighting but it would make things financially difficult for them. 67% of the Texas teachers presented a thought that they wanted to leave moonlighting as it had been more than five years doing multiple jobs which was affecting their health which became a major concern for them.



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reseArCh gAp

The literatures in the past focus on some basic reasons and one such commonly observed is the insufficient income. Also, it is observed that either other professionals or teachers are covered in the studies of moonlighting but very limited focus is given on professors teaching in graduation or post graduation moonlighting. This study would reduce that gap and analyse the background of the respondents and relate their factors which motivated them to moonlight.

RESEARCH METHODOLOGYIn the present research the following research methodology parameters would be followed with reference to Saunders, Lewis and Thornhill, (2016).

reseArCh pArADigm

The very first parameter of research methodology is to select the appropriate research paradigm which defines the scientific method of analysing the assumptions of the research. The paradigm is base for the research on which the entire structure of the study is developed. There are two research paradigms i.e. Ontology and Epistemology (Rehman and Alharthi, 2016).

Ontology would describe the situation as it exists i.e. ‘the state of being’. In this paradigm the materiality of the facts is presented and what truly exists is described. Whereas, epistemology would present the reason behind what exists. So, in the present research both the paradigms are used as it would be described whether the academicians are involved in organisational development while they are simultaneously performing other economic activities.

The research paradigm is to be used along with stipulated philosophies. There are four philosophies based on which research is conducted. They are: Positivism, Realism, Interpretivism and Pragmatism. In present research positivism philosophy is used because in that the reality is checked with the physically present traits and the causality between such traits. In this research philosophy the data is collected and tested numerically in order to present the simplistic view of the data and present whether the variables under the study are related to each other or not. (Saunders and Tosey, 2015).

positivism rAtionAle

Positivism philosophy is accepted as the variables under the study would be defining the level of involvement of academicians in the activities for organisational development. Also, the causality between the variables would be identified and it would be known based on the respondents analysis that are they able to involve in organisational development activities while performing additional economic activities. This is a pilot research wherein such depiction would direct the future researches in identifying the reasons behind additional economic activities and also the development of students and many other aspects. So, this would serve as the base for the argument of future studies in this area of research. The assumptions would be tested statistically from the responses received.



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reseArCh ApproACh

There are three research approaches: Deductive Approach where hypothesis are developed and statistical analysis is done; Inductive approach is used where the study is to be carried out on already existing theories and Abductive Approach is to be used where mixed method approach is to be used (Thomas, 2006; Awuzie and McDermott, 2017). In the present study deductive approach is used as the quantitative data would be used.

Rationale for Selecting Deductive Approach

The researcher has chosen deductive approach in order to find out the causality between the stated variables under the study. The variables like additional economic activities, academicians’ involvement in organisational development, their experience, their proportion of earnings from extra activities, etc. The hypothesis is developed and is tested statistically.

reseArCh strAtegy

There are two research strategies: Qualitative strategy, quantitative strategy. In the present study Quantitative strategy would be used.

Rationale for Selecting Quantitative Approach

This approach is taken as various aspects for moonlighting would be presented and it would focus on many prevailing factors apart from commonly known financial constraints. This particular research would focus on the academicians moonlighting, their impact on productivity, the hustle of maintaining two jobs, etc. The response of the Academicians would be coded numerically as there are question based on productivity and organisation development with five scales ‘Likert Scale’ response. The scale ranges from ‘Strongly Agree’ to ‘Strongly Disagree’ and the codes would range from 5 to 1 respectively in decreasing order of the responses.

reseArCh tool

The tool used for this research is questionnaire in which there are demographic as well as organisational development and moonlighting oriented questions. Some of the parameters which are included are the Name, age, experience, gender, their family background, their profile, etc. The other organisational development oriented questions would focus on the factors like the involvement of academicians in moonlighting, the cooperation from the principal, etc. These questions as mentioned above would be based on ‘Likert Scale’ which would be coded.

reseArCh Design

There are two research designs in research structure: Cross sectional and longitudinal. In the present study cross sectional data and explanatory design is to be used (Ployhart and Vandenberg, 2010).

Rationale for Selecting Cross Sectional Design

In this research the data would be collected for satisfying the aim of the present research. The respondents might present a different view on the similar concept



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presented by some other researcher based on their aim and objective. In the present study the responses would be analysed for this particular period only unlike in longitudinal design where the responses of the respondents are collected over the period of time and variances are analysed. But in the present research the opinions would be analysed for the present period of research which might not be applicable for comparison with other researchers in future but can be taken as reference.

methoDs of DAtA ColleCtion

There are two methods of data collection: Primary data and secondary data. In this research Primary data collection method is selected (Quinlan, Babin and Griffin, 2019).

Rationale for Methods of Data Collection

In primary data collection there are various tools through which, data is collected and analysis is performed based on that. Tools like survey, experiment, interviews, observation, etc. Survey can be conducted through questionnaire by sending it through any medium or even taking face-to-face interview based on that questionnaire. Data collected through questionnaire is then coded into numeric forms like giving numbers to responses based on their priority and then identifying the relationship among the variables.

methoD of sAmpling

There are two methods of sampling: probability sampling and non-probability sampling (Taherdoost, 2016). In probability sampling every sample has the equal chance of selection. If the respondents would have been selected on the basis of probability sampling then it would have been very difficult as the total number of professors working in Gujarat and that too in graduation and post graduation would be needed. This would have been difficult to identify and also the standard data banks would have the records of only those professors who have University profiles so it would have limited certain factors for analysis. In non- probability every event does not get equal chance of being selected. In this study non probability convenient sampling is used as the Academicians are selected conveniently from the available data. The sample size chosen is 50 Academicians.

reseArCh ethiCs

This study will cover information from all the secondary sources from authenticated sources. The information collected would not be used to misguide the impression of the situation or participants involved. It would maintain their esteem in the field of business. The data collected about past researchers and organisations would be from credible sources and no anonymous or confidential source would be presented. The case would present the factual information about the research and the respective outcomes in context to moonlighting and its significant factors, issues and impact (Brakewood and Poldrack, 2013).



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ANALYSISThe analysis section would describe the following question wise interpretation: The questionnaire was distributed to 50 respondents out of which the acceptable responses were 37. Hence, the data was filtered and 74% of the data was used for analysis.

DesCriptive AnAlysis

In order to satisfy objective 1 the following background study is conducted of the academicians

Objective 1: Analyse the profiles and experiences of the AcademiciansTable 1: Descriptive Analysis

Gender Male- 18 (48.6%)Female- 19 (51.4%)

Age Group 25-30 years- 22 (59.5%)31-35 years - 22 (59.5%)36-40 years- 4 (10.8%)41-45 years- 046-50 years- 0Above 50 years-1 (2.7%)

Marital Status Married- 14 (37.5%)Unmarried- 22 (59.5%)Other- 1 (2.7%)

Experience in Teaching Less than 5 years- 15 (40.5%)5-10 years- 15 (40.5%)11-15 years- 4 (10.8%)More than 15 years- 3 (8.1%)

Type of Institute Self-Financed- 36 (97.3%)Grant in Aid- 1 (2.7%)Government- 0

Stream of Teaching Computer Science-6 (16.2%)Management- 13 (35.1%)Commerce- 10 (27%)Arts- 1 (2.7%)Engineering- 0Any Other- 7 (18.9%)

Level at which Academicians Teach Under graduate (UG Level)- 25 (67.6%)Post Graduate (PG)- 7 (18.9%)Post Graduate (PG)- 7 (18.9%)Diploma- 0UG and PG- 5(13.5%)

Table 1 (contd.)...



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Registered Profile at University Yes- 24 (64.9%)No- 13 (35.1%)

Total Number of Family Members in Academicians Family

3 Members- 9 (24.3%)4 members- 13 (35.1%)More than 4 members- 15 (40.5%)

Family Member of Academician with Government Job

Yes- 7 (19.4%)No- 29 (80.6%)Contract Basis- 0

Academicians Family Member is a Retired Government Employee

Yes- 10 (27%)No- 27 (73%)

Number of Working Members in Academicians Family

1 (Only you)- 8 (21.6%)2-15 (40.5%)3-13 (35.1%)More than 3 (Or all)- 1 (2.7%)

Family Income of Academicians is Sufficient to Cater the Needs and Ensure Savings

Yes- 31 (83.8%)No- 6 (16.2%)

Highest Degree Possessed by Academicians Ph. D- 9 (25%)M. Phil- 0Master Degree- 27 (75%)

Type of Teaching Job Academicians are Enrolled in Part-Time- 31 (83.8%)Full Time- 6 (16.2%)Visiting- 0Other- 0

stAtistiCAl AnAlysis

Objective 2: Ratio between Moonlighters and Non–moonlighters

It is observed that out of 36 Academicians 21 Academicians are involved in other economic activities whereas the remaining 15 Academicians do not have any second source of economic activity. Therefore, 58.3% of the academicians moonlight and 41.7% of the Academicians did not moonlight. Correspondingly the time spent by the Academicians on other economic activity is 13 moonlighters spend less than 4 hours in their second job and another 11 Academicians spend 4-8 hours in second job also. Hence, out of total moonlighters 54.2% spend half amount of time in their second job. It is observed that more respondents has replied in the question of number of hours spent in second job which depicts that 3 respondents have attempted this question and it might be considered as dummy 6-50 years- 0 Above 50 years- 1 (2.7%) responses. Hence, in present case the researcher considers 21 moonlighters in comparison to 36 respondents who replied to this question.

Objective 3: Analyse the Involvement of the Academicians in Organisational Development Activities and Relating it to their Moonlighting Status.

In order to analyse the objective 3, two hypotheses are constructed which are presented as follows:

...Table 1 (contd.)



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Hypothesis 1

H0= There is no correlation between the moonlighting status of academician and the justification they can provide to the multiple jobs at a time.

H1= There is correlation between the moonlighting status of academician and the justification they can provide to the multiple jobs at a time.

Using SPSS software it was analysed that the correlation coefficient between their moonlighting status and justification to their primary job is positive with a value of r = 0.945 as per Pearson’s Correlation method and r = 0.891as per Spearmen’s correlation method. It is observed that as per both the methods the value of correlation is nearer to 1. Hence, it can be interpreted that those who moonlighted did not compromised their primary job and their productivity would not be affected due to serving in multiple jobs at multiple times. So, it can be observed from the analysis that there is a positive correlation between the two variables and hence, the null hypothesis is rejected and alternate is accepted.

Hypothesis 2

H0= There is no significant difference among the group of dependent variables and the factor.

H1= There is significant difference among the group of dependent variables and the factor.

In the present research, the following are the Dependent Variables:Table 2: ANOVA

I earn more in my other economic activities apart from the primary job.

SS df MS F Sig.

Between Groups 1.774 1 1.774 .872 .358

Within Groups 59.000 29 2.034

Total 60.774 30

I am able to justify multiple jobs at the same time.

Between Groups .675 1 .675 .649 .427


Total 31.875 31I carry out class activities for the development of students at my organization.

Between Groups 1.408 1 1.408 2.288 .141

Within Groups 18.467 30 .616

Total 19.875 31

I never do overtime at my primary place of work/ organization.

Between Groups .752 1 .752 .473 .497


Total 48.469 31

The Academician is able to justify multiple roles at the same time, The academician carries out school activities Hence, it is observed that null hypothesis is accepted and there is no significance between the Academician moonlighting and the impact of that on their involvement in organisation as all the results of the test variables significance show the value more than 0.05 which depicts that nothing holds true



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to the assumption that if the person is moonlighting his/her performance will deteriorate.

DISCUSSIONThere are many types of moonlighting activities which are described in this paper such as full moonlighting, blue moonlighting, half moonlighting and quarter moonlighting. Moonlighting Academicians observe a constant stress of managing both the jobs simultaneously but in order to reduce financial stress they indulge in other jobs (Arora, 2013). It was observed from the data that most of the respondents i.e. 38% of the people earned more in their secondary job than in their primary job. It was also observed that the 35% of the academicians strongly agreed that they actively participate in the organisational activities organised for the betterment of the students and actively participate in their primary Job. 62% of the Academicians were made in-charge of the activities organised at their college. 83% of the Academicians actively organised class activities for student development. 64% of the respondents were able to justify their multiple jobs simultaneously. 75% of the respondents agreed that leaders co-ordinate with them in such a manner that they would be delivering what is expected from their job roles. Most of the Academicians i.e. 62% of them agreed that Principal used to coordinate equally when the academician desired to conduct any event and accordingly provide all the required information for the same. 51% of the Academicians were strong enough to counter ask their superiors if they were not sure about any information or they find something is wrong. Very less number of the academicians i.e. 37% agreed to the fact that other faculty members who are not in charge of the activities organised do not actively participate in the event. 67% of the Academicians agreed to the fact that they were able to justify their multiple jobs simultaneously. 64% of the academicians even who were moonlighting or not, spend more than required time at their principal place of work. The respondents who responded that they are spending more time at their principal place of work correspondingly disagreed to the question that they never do overtime at their organisation. Most of the moonlighters agreed that if at all they must have not been involved in the secondary job then they would have focused more on the primary job activities. Half of the academicians were agreed and disagreed both that they feel exhausted by doing multiple jobs simultaneously. 21 respondents agreed that they are getting sufficient pay from their organisations but still most of them moonlight.

54.2% of the respondents are involved in the activities which are either coming under blue moonlighting or under quarter moonlighting. Rest of the academicians are involved in half to full moonlighting with reference to the study by Tiwari, (2020). Also, from the results of the present paper it was observed that most of the respondents indulge in secondary jobs due to insufficient salary and a better quality living which was similarly observed in the sty of Urwick & Kisa, (2014). The results of the present research also correlated with the study by (Nunoo et al., 2018) because there is a relationship between job security and moonlighting. In The response it was mentioned that if they would get job security or more pay they would have been involved more in the organisational developmental activities.



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CONCLUSIONThe literature review style can also be referred in future for presenting in dissertation as it is divided into moonlighting in developed countries, developing countries. Extensive literature studied around the globe and presenting significant crux from it. Since the aimed doctorate thesis is based on India academicians the focus could be presented on either Indian or even Asian and developing countries. The research methodology also describes every detail but the sample size and tool can be used more which would make this research more reliable. Hence, in this paper the researcher achieved the objective of the research and analysed that there is no relation between the factors that when a person moonlights than his or her performance is affected. Also, it was observed in the past literature the reason which lead Academician to moonlight was the insufficient income of the person which forced them to take up the secondary job and earn an extra income for a better quality life. The assumptions of the study did not hold true and those who moonlighted also provided good services at their principal place of work. They were also involved in the student development activities, they did overtime, they were also in charge in many activities, and they carry out class room activities.This particular research is a very limited view of the moonlighting academicians. It covered only limited respondents as it was a pilot study which is not necessarily the representative sample size of the population. The number of professors enrolled in entire Gujarat is also not specifically known. So, such limitations should be discarded in the future research. Also, some extensive interviews and focus group which should be conducted from the same respondents in order to exchange their views about concept of moonlighting and its impact on their career and productivity. The future scope of this research would be conducting survey of more respondents so that the results can be generalised and it could guide the faculties, principals, trustees and the professor fraternity at large.

REFERENCES[1] Arora, N. (2013). Analyzing moonlighting as HR retention policy: A new trend. Journal of

Commerce and Management Thought, 4(2), 329-338.

[2] Awuzie, B. and McDermott, P. (2017). An abductive approach to qualitative built environment research. Qualitative Research Journal, 17(4), pp.356-372.

[3] Brakewood, B. and Poldrack, R.A. (2013). The ethics of secondary data analysis:Considering the application of Belmont principles to the sharing of neuroimaging data. Neuroimage, 82, pp.671-676.

[4] Vyas, M., & Pareek, J. (2015). A Study of Employee Moonlighting in Present Scenario.

[5] INROADS- An International Journal Of Jaipur National University, 4(1), 28. https://doi.org/10.5958/2277-4912.2015.00006.5.

[6] Nunoo, J., Darfor, K., Koomson, I., & Arthur, A. (2018). Employment security and workers’ moonlighting behavior in Ghana. Journal Of Economic Studies, 45(1), 144-155. https://doi.org/10.1108/jes-04-2016-0074.

[7] Ployhart, R.E. and Vandenberg, R.J. (2010). Longitudinal research: The theory, design, and analysis of change. Journal of Management, 36(1), pp.94-120.



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[8] Quinlan, C., Babin, B., Carr, J. and Griffin, M. (2019). Business research methods. South Western Cengage.

[9] Rehman, A. and Alharthi, K. (2016). An Introduction to Research Paradigms. International Journal of Educational Investigations, 3(8), pp.51-59.

[10] Saunders, M., Lewis, P. and Thornhill, A. (2016). Research Methods for Business Students. 7th ed. Pearson.

[11] Saunders, M.K., and Tosey, P. (2015). Handbook of Research Methods on Human Resource Development, Cheltenham, UK: Edward Elgar Publishing. Available From: Elgar Online: The online content platform for Edward Elgar Publishing https://doi.org/10.4337/9781781009246

[12] Shishko, R., & Rostker, B. (1976). The economics of multiple job holding. The American Economic Review, 66(3), 298-308.

[13] Taherdoost, H., 2016. Sampling Methods in Research Methodology; How to Choose a Sampling Technique for Research. SSRN Electronic Journal.

[14] Thomas, D. (2006). A General Inductive Approach for Analyzing Qualitative Evaluation Data. American Journal Of Evaluation, 27(2), 237-246. doi: 10.1177/1098214005283748

[15] Timothy, V. and Nkwama, S. (2017). Moonlighting among teachers in urban Tanzania: A survey of public primary schools in Ilala District. Cogent Education, [online] 4(1). Available at: https://doi.org/10.1080/2331186X.2017.1334434.

[16] Tiwari, R. (2020). Moonlighting and implementing policies that prevent it. Project Guru.Retrieved 26 May 2020, from https://www.projectguru.in/moonlighting-avoid/.

[17] Urwick, J. & Kisa, S. (2014). Science teacher shortage and the moonlighting culture: The pathology of the teacher labour market in Uganda. International Journal Of Educational Development, 36, 72–80. https://doi.org/10.1016/j.ijedudev.2013.11.0042.


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18

Role of HR in Future of Work

Sharda Gangwar1, Nimisha Maheshwari2 and Ankita Patel3 1,2,3Institute for Excellence in Higher Education, Barkatullah University, Bhopal

ABSTRACT

The role of HR in organization like planning and managing strategic growth is as important as the role of technology and business leadership. Not long ago, the normal HR department at any given business was focused totally on functional activities like the recruitment of new employees and disciplining current employees who broke the rules of organization. But things have changed now, Now days it is all about innovation and technology, as the technology is changing day by day so as the role of HR. After all, it is all about employees or human and there are hardly exists a complete role of humans in carrying any task, today the technology is superseding every human intervention the human actions and performances get controlled and ruled by the directions of technology they adopt. With the present disruption within the industry, traditional ways of working became things of the past. This COVID-19 crisis, as a global shock, illustrates once again that HR have an opportunity but also the shared responsibility to make a difference. Changes in working conditions during this pandemic have sometimes resulted in an imbalance of resource allocation. Re-skilling and up-skilling of employees according to changes and challenges in technology and working conditions is become most important. This paper discusses how the introduction of new technology, such as artificial intelligence, virtual reality, and this Covid pandemic, will impact the future work and the role of HR.

Keywords:HR, Human Resource, The Changing Role of HR, Automation, New Technologies

HR INTRODUCTIONHR (Human resource) the term refers to the people who make up an organization’s workforce at the company or national level. A human resource is an individual in a company’s overall workforce, each individual lending their skills and expertise to the organization to help it succeed. A person who is willing to trade his/her labor, knowledge, or time for compensation in an effort to improve the organization is a human resource. It doesn’t matter which position they acquire in organization, if they’re part-time, full-time, freelance, or contract employees. For any organization most valuable asset is its human resources.

Human resources are often describe as both the people who work for organization and the department within organization responsible for managing resources



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associated to employees. HR department of an organization hires, administers, and trains personnel. In fact, that department may exist in any organization that employs people.

The term human resources was first coined in 1960s when the worth of labor relations began to garner attention and when notions like motivation, organizational behavior, and selection assessments began to take shape. Before the evolution of HR to today’s standards, working conditions were harsh and dangerous (in the Middle Ages) and the tension between the need for physical protection and higher output was growing. This was the time when workers were considered expendable. In this period, where people were out for themselves and there wasn’t a human resource department to quash the bullies and make them put down their swords. But there was a time when working conditions were untenable and unsafe for human beings. After this, the idea of a connection between worker wellbeing and their productivity emerged between 1890 and 1920, As the HR function continues to undergo rapid development and changes due to technology and globalization, it continued to add value to the organization and deliver better results. Slowly the organizations were shifting towards the concept that the Workers need to be treated as people, not as expendable resources they should get opportunities to learn on the job and should compensated fairly for their efforts, they became more valuable to the organization. The modern form of Human resources has started from the early days of the industrial revolution, where factories introduced programs to enhance the satisfaction of workers so as to increase their productivity, after that organization introduce the HR department to take care of employee related issues and compliance to labor laws.

Today the technology is superseding every human intervention the human actions and performances get controlled and ruled by the directions of technology they adopt. We are witnessing revolutionary, not just incremental change. As Paul Daugherty said in his book, Human + Machine: Re-imagining Work in the Age of AI, the workplace experience is changing in profound ways. Now days it is all about innovation and technology, HR should be diverse. After all, it is all about employees or human and there are hardly exists a complete role of humans in carrying any task. More or less human actions and performances get controlled and affected by the directions of technology they adopt. Diverse approaches can bring little yet an impactful change within day-to-day work of employees. therefore Human Resource has to be all more mindful to underpin every activity associated with it and to fast forward the future, it need the help of technology.

OBJECTIVES OF THE STUDY• To understand the changing role of HR.

• To analyze the future need of HR.

RESEARCH DESIGN

Sources of Data

The study on the topic “Role of HR in Future of Work” is based on secondary data.



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HR COMPETENCIESIt won’t be that HR was just the place you visited get hired or fired, but those days are long gone. Today, HR is liable for a good range of employee activities, most of which focus on enabling, engaging, and empowering employees. HR workers are the core players in creating employee experience, which works with an organization’s culture and growth and ensures that employees feel, valued and supported along every step of their workplace journey.

Instead of being the people within the company who enforce the principles, HR representatives are now thought of as leaders and mentors. Employees wont to be anxious of interacting with HR employees for fear that they might get in trouble for doing something wrong, but today that mentality has shifted towards viewing HR employees because the people to go to with suggestions or feedback of a way to enhance employee experience and to achieve insights into a way to better your career.

HR was long thought of the department that kept the organization humming along which was proof against change. If you wanted to do something new, create a brand new program, or change your work schedule, it might likely get delayed in HR. Now, however, HR is usually liable for obliterating the establishment to keep the organization moving forward. Rather than holding things back, HR is the driving force in building a unified work environment where employees are glad and progress can happen.

The new HR embraces technology to enlarge its role. Using new tools like vast statistics and analytics, HR can better understand employees and make more strategic decisions, as against the old role of using emotion and tradition to create decisions. Internal data is out there on regarding everything, from how employees are performing to how often they visit certain areas of the office. HR representatives use this data to seek out trends and make the simplest possible strategy and employee environment.

It won’t to be that HR just did because it was told and did not have much impact in the overall strategy of the organization. Today, HR employees help shape and lead strategy, especially as corporation realize the impact on employee experience can have on growth and revenue. Fulfilled and happy employees play an enormous role within the overall success of a corporation, which suggests HR now helps shape and lead the general strategy.

Today, HR is evolving into a more central role within the organization where it’s a key seat at the decision-making table. Various C-level executives come from HR backgrounds and work with the department to make sure its needs are met. HR is more involved than ever with other departments and sometimes has its hands in many baskets through the corporate.

HR now does far more than simply work through payroll and compensation. Rather than that specialize in the fundamental needs of employees, it focuses on building an excellent experience where employees want to come back to the office and do their best work. With an excellent corporate culture, employees show up to work for



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more than just the paycheck, which suggests HR also needs to work on more than just payroll.

In many cases, the change in HR’s role within a corporation is because of executives realize its profit-creating potential. The old HR was often considered to be a cost center, but by driving strategy and employee experience, the new HR provides the chance to make profits and growth. This has helped the HR department get a bigger budget because executives can see that investing in HR results in stronger employees, a far better workplace experience, and sometimes to higher profits.

The workforce is changing right alongside HR, and therefore the department has got to be able to meet those changes. as the workforce changes, so too does HR’s approach to employee experience. More employees are working in HR to achieve experience they will use in other areas, which implies the department is consistently getting new points of view, which it can use to make a more cohesive work environment.

As HR evolves, it’s having more interaction with employees and playing a bigger role within the day-to-day activities and responsibilities of workers. Rather than that specialize in employee inputs and what it takes to induce the work done, HR today is more focused on employee outputs and the way it can encourage employees to try and do their best work possible.

Employees are now viewed as HR less as resources and more as vital parts of the organization that they cannot live without. It won’t to be that without employees, HR wouldn’t have anyone to hire or fire--employees were simply things HR needed to try and do its job. Now, employees are seen as more vital--they are what drive everything HR does, and that they play an enormous role in the department’s success. What HR does now depends on what employees want and is customized to their needs.

HR is now more engaged in the everyday employee experience than ever before. Much of this comes from real-time employee feedback with regular check-ins rather than the old way of annual performance reviews. With more applicable feedback, HR hopes to make a dialogue with employees where they feel comfortable hearing ways to enhance and are receptive making suggestions of their own

In many cases, HR is now focused on ensuring employees get the professional development skills they have to better their careers. Rather than simply plugging employees into positions within the organization, HR works with people to seek out their best skills, unlock and develop talents which may be below the surface, and shape a position within the organization that meets their skills and interests.

The developing HR department not applies a one-size-fits-all solution to the company and instead uses a one-size-breaks-all approach. HR now realizes that every department and employee is different and that a distinct approach must be taken to satisfy individual needs. This can be often implemented by spending time with individual employees and departments to seek out how HR can best support them and drive their strategies.



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IMPACT OF 2020 ON ROLE OF HRIn recent years, HR has undergone dynamic shifts in its functions, not only innovation and technology but in the year 2020 the pandemic COVID 19 has also changed many dynamics and overall impact in shaping organizations. Health & safety become first priority of HR due to these pandemic organizations has to switch to a remote work model. As face-to-face meetings is replaced with videoconferencing, for some organization, the technology and communications infrastructure needed for successful remote work are not available to employees. Even before COVID-19, many workers lacked digital capabilities. Some organizations have all these facilities, but none of them have clear policy and rules for remote work model. Now HR requires to, team up with Finance, IT and other departments to develop and implement new rules. Following are some recommendations that can help organization in surviving in this changing environment. The sooner the shift happens, the higher the chances of survival.

• To compete for talent effectively, organizations should provide flexible work rules and policies that support longer-term shifts in working practices, policies should be more flexible, techno friendly and remote-friendly,

• Now the most important job of HR managers’ is to keep employees up-to-date, inspire and build trust, they can use technologies, like text messages, or e-mails, and video conferencing to communicate with them.

• Develop and maintain, discipline, and loyalty in employees by nurturing their emotional, physical and mental, health. It will build a sense of togetherness.

• Some organizations are already hiring Director of wellbeing like Johnson & Johnson is currently recruiting for Director Mental Wellbeing & Work Life Effectiveness. They also started a ‘telemedicine program’ to help the employees with questions about their physical and mental health.

• Flipkart is also encouraging its employees to take a ‘Digital Chai Break’ and guiding them in scheduling their work day.

• Buffer a European company providing online therapists for its entire remote workforce.

• Online meditation and fitness sessions during work for home can help to keep employees motivated and engaged.

CONCLUSION In a time where automation and new technologies are rapidly changing the planet of labor, HR will play an enormous role in helping organizations and their people become future proof. The COVID-19 crisis, as a global shock, illustrates once again that HR have an opportunity – but also the shared responsibility – to make a difference. They can do so by providing inspired responses, grounded in state-of-the-art scholarly work, to the grand challenges of our time. The pressure is on HR to organize themselves and their organizations for important changes coming each and every industry. That means HR professionals got to study all emerging



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technology and therefore the issues surrounding them. Employees are going to be turning to HR to answer questions like, “What skills should I be developing to future-proof my career?” and HR needs to be able to confidently answer them. Whatever the next decade holds, you’ll make certain that HR are going to be the primary to feel the impact of it. Today’s HR teams got to intensify cram and obtain ready - because the longer term is coming for you. But HR itself will look pretty different within the not too distant future too. HR professionals will get to equip themselves with a replacement range of skills including people analytics, digital HR, strategic workforce planning, design thinking, and stakeholder management. At the same time, HR departments are going to evolve and adapt because of new technology, trends and challenges. There’ll be more analysts within HR teams, perhaps someone purely dedicated to addressing job losses from automation, and even a few of career coaches.

REFERENCES[1] The Future of Work: How Technology Will Impact the Workplace and HRConference: XI

International Workshop on HRM, At Sevilla, Spain.

[2] https://www.tutorialspoint.com/human_resource_management/human_resource_management_introduction.htm

[3] https://www.tutorialspoint.com/human_resource_management/human_resource_management_ehrm.htm

[4] https://courses.lumenlearning.com/boundless-business/chapter/the-functions-and-goals-of-hr/#:~:text=In%20short%2C%20human%20resource%20activities,a%20wide%20variety%20of%20activities

[5] https://www.digitalhrtech.com/human-resources-functions/

[6] https://www.startuphrtoolkit.com/functions-of-human-resources/

[7] https://greatpeopleinside.com/5-future-roles-hr/

[8] https://www.forbes.com/sites/jeannemeister/2018/09/24/the-future-of-work-three-new-hr-roles-in-the-age-of-artificial-intelligence/#4184bd5d4cd9

[9] https://www.tutorialspoint.com/human_resource_management/human_resource_management_quick_guide.htm

[10] ht tps ://economict imes . ind iat imes .com/smal l -b iz/hr- leadership/leadership/the-future-is-now-the-changing-role-of-hr/art ic leshow/68229542.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

[11] https://theorganicagency.com/news/hrs-role-in-the-future-of-work/

[12] https://www.digitalhrtech.com/hr-roles-of-the-future/

[13] https://guild.co/blog/the-changing-role-of-hr-in-the-future-of-work/

[14] https://hbr.org/2020/08/21-hr-jobs-of-the-future

[15] https://www.selecthub.com/hris/hr-trends/

[16] https://content.timesjobs.com/top-5-indian-companies-revisiting-employee-wellness-strategies-amid-covid-19-outbreak/articleshow/75200141.cms

[17] https://asanify.com/blog/human-resources/future-of-hr-2025-2030/

[18] https://www.shrm.org/hr-today/news/hr-news/pages/hr-managers-rethink-their-work-coronavirus-pandemic.aspx



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[19] http://bwpeople.businessworld.in/article/Role-of-Human-Resource-in-the-Post-COVID-Environment/19-06-2020-289219/

[20] https://www.researchgate.net/publication/344769881_Effects_of_Covid-19_on_Human_Resource_Management_from_the_Perspective_of_Digitalization_and_Work-life-balance

[21] https://www.hrmorning.com/articles/covid-will-transform-hr/

[22] https://www.ey.com/en_gl/health/how-covid-19-reshapes-the-mental-health-needs-of-workers

[23] https://www.workstars.com/recognition-and-engagement-blog/2019/11/20/10-companies-getting-workplace-wellbeing-right/


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19

Drug Abuse: Issues and Approaches

Hariom Gandhi1 and Anjali Gokhru2

1,2K.S. School of Business Management, Gujarat University, Ahmedabad

ABSTRACT

Drug abuse has always been a matter of concern for any civilized society. Around 5% of the world’s population consumes drugs. The present generation is the one that is most interconnected and getting influenced by drugs. Anything that happens in the Western world is being blindly adopted by third World countries. The problem lies in the fact that it is difficult to follow the good practices of the West and easier to adopt the bad ones.

Drug abuse has taken an ugly turn in today’s life. The most glaring example is the recent episode where many Bollywood stars have come under the scanner for drug consumption which has certainly fueled the debate on the issue in the country. Drug abuse all over the world as well has taken a different dimension during these challenging times of Covid 19.

The key question is that in spite of having very tough laws like NDPS ACT 1985 where punishment ranges from 6 months imprisonment to even death penalty, people from all walks of life are continuously consuming drugs. Many of these people are suffering from serious mental/ neurological disorders, poor mental health which culminates in suicide in many cases. It has become a big challenge for any organization and its higher management to develop a foolproof plan that can give them a road map/ example to save their employees from drug abuse.

Cannabis legalization is now a reality in the USA, Canada and few other countries. It is also a point to ponder about its implication in India. We need to see in detail the issues regarding the society, the cultural aspects of India and pros & cons while taking any policy decision. This research paper would study the impacts of the legalization of cannabis in US, Canada and the western world. A comparative study post and pre-legalization and option before policymakers in the context of INDIA would be done..

Keywords:Drug Abuse, Drug Issue, Legislation, NDPS Act, Cannabis Legalization, Harm and Medical Emergencies

INTRODUCTIONToday, no piece of the world is liberated from the scourge of medication dealing and medication misuse. A great many medication addicts, everywhere in the world, are having hopeless existences, among life and demise. Around 190 million individuals everywhere in the world devour drugs. Medication Abuse is a perplexing wonder, which has different social, organic, topographical, verifiable and financial angles. Medication Abuse and Alcohol in the adolescent age have expected disturbing measurements in India. Generally, changing social qualities, expanding monetary pressure and waning



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steady bonds are prompting inception into substance maltreatment in youth. In India, more youth and teenagers struggle with drug addiction than ever before. The basic root causes of drug addiction are poor knowledge of child psychology, communication gap with parents and peer pressure, addiction to social media, junk food and leading an unhealthy lifestyle. It will harm the physical, mental, good and scholarly development of the adolescent. So, the impact of drug abuse is reflected on individuals, families, communities and nations (Geetanjali, 2011).

CANNABIS AND ITS DERIVATIVES

A cannabis plant implies any plant of the class cannabis and it contains 70 extraordinary mixtures, all things considered, known as phytocannabinoids, the fundamental psychoactive substances being Tetrahydrocannabinol (THC), which gives the psychoactive impacts of cannabis. Even though there is a continuous discussion concerning whether the family cannabis contains at least one animal variety, the medication is viewed as monospecific (Cannabis sativa L). There are two subspecies of the plant (Sativa and Indica) and four assortments.

Cannabis delivered in pretty much every country, cannabis spice comprises of the dried and disintegrated leaves and blooming highest points of the cannabis plant, which are by and large smoked. Conversely, cannabis tar, which is the concentrated concentrate of cannabis bloom and plant, is chiefly created in a couple of nations in North Africa, the Middle East and South-West Asia. Hash oil is a cannabis item that can be separated from any piece of the plant, with negligible or no remaining dissolvable. With the significant change of cannabis development lately, the cannabis market has differentiated to the degree that it currently contains an expansive scope of items with shifting methods for ingestion, power and impacts (WDR, 2019).

According to NDPS Act, Cannabis (hemp) implies; (a) Charas, that is, the isolated pitch, in whatever structure, regardless of whether rough or sanitized, acquired from the cannabis plant and incorporates concentrated readiness and sap known as hashish oil or fluid hashish. (b) Ganja, that is, the blossoming or fruiting highest points of the cannabis plant (barring the seeds and leaves when not joined by the tops), by whatever name they might be known or assigned; and (c) any blend, with or with no nonpartisan material, of any of the above types of cannabis or any beverage, arranged there from (NDPS Act, 1985).

CANNABIS AND ITS DISORDERSIn India, almost 0.7 percent of the all-out populace (matured 10-75) was viewed as experiencing cannabis use problems (WDR, 2019). The problems are;

Short-term Efforts

• Mild euphoria

• Lowering of inhibitions

• Reddening of eyes

• Sense of smell, touch and taste are often enhanced



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• Altered sense of time perception• Impaired short-term memory• Impairment of ability to perform complex motor tasks.

Long-term Effects

• Decreased cognitive ability• A motivational syndrome• Psychosis• Respiratory problems• Sterility / impotence• In women abusers, fetal damage can occur.

Withdrawal Symptoms

• Sleep disturbances• Loss of appetite, irritability• Tremors• Depression or psychotic symptoms may become prominent.

REGULATION OF THE NON-MEDICAL USE OF CANNABISIn March 2019, lawful arrangements permitting the non-clinical utilization of cannabis have been affirmed in Uruguay and Canada just as in 10 locales in the United States. The normal element of the enactment is that it for the most part considers the creation and offer of cannabis items for non-clinical use in the applicable wards. In any case, there are contrasts in the degree of guideline and control of the non-clinical utilization of cannabis and the various guidelines that are being executed in various neighborhood settings and elements are probably going to include an alternate effect inside every ward on the advancement of cannabis showcases, the degree of non-clinical utilization of cannabis and another general wellbeing, security and criminal equity results (WDR, 2019).

regulAtion of CAnnAbis in uruguAy

In 2013, the Government of Uruguay affirmed enactment directing the development, creation, apportioning and utilization of cannabis for non-clinical purposes. The guideline and control of cannabis and by picking one of three choices; (1) buy- in approved drug stores; (2) participation of a club; (3) homegrown development. The amount of cannabis allowed per individual, acquired through any of the three components, can’t surpass 480 g each year. In February 2018 there were 16 drug stores administering cannabis for non-clinical use in the country, with 34696 individuals enlisted to get cannabis from them. By February 2019, 115 cannabis clubs had been enrolled, with absolute participation of 3406 and 6965 people had been enlisted for individual or homegrown development of cannabis. It makes a sum of around 45000 individuals with admittance to the controlled cannabis market in Uruguay (WDR, 2019).



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regulAtion of CAnnAbis in CAnADA

In 2018, the Government of Canada passed an enactment allowing the creation and offer of cannabis for non-clinical use among individuals matured 18 or more seasoned. The targets of the enactment are to get cannabis far from youngsters (under 18 years old) while keeping hoodlums from benefitting from the appropriation and offer of cannabis and defending general wellbeing and security by permitting grown-ups (matured 18 or more seasoned) lawful admittance to cannabis. The amount of cannabis allowed per individual 30 g of dried cannabis (or) same or 150 g of new cannabis (or) 450 g of a consumable item or 2100 g of the fluid item (or) 7.50 g of concentrates (strong or fluid) (or) 30 cannabis plant seeds. Based on the established division of forces in Canada, the government and common governments have various duties. The Federal Government is liable for setting the prerequisites for the individuals who develop and produce cannabis, including the kinds of cannabis items ready to move. The commonplace and regional governments are answerable for creating, executing, keeping up and implementing frameworks to regulate the dispersion and offer of cannabis (WDR, 2019).

regulAtion of CAnnAbis in the uniteD stAtes

In 2018, a sum of 33 states, just as the District of Columbia, Guam and Puerto Rico had endorsed or had set up an exhaustive public clinical cannabis program. In 2019, 10 state-level locales in the United States, in addition to the District of Columbia, permit the non-clinical utilization of cannabis. In 2018, Michigan and Vermont were the two states wherein enactment permitting the non-clinical utilization of cannabis had been endorsed. Vermont is the solitary express that legitimized it through the state lawmaking body. While the non-clinical utilization of cannabis was sanctioned through elector’s drives in different locales. Indeed, in states, for example, Colorado, the underlying applications for sporting cannabis licenses were confined to organizations that were at that point authorized to sell cannabis for clinical purposes (WDR, 2019).

NON-REGULATION OF CANNABIS IN INDIA

pAst history

The utilization of the cannabis plant for an assortment of purposes has since quite a while ago existed in India, a reality likewise noted for some different nations of Asia. Its utilization for clinical reasons, just as its brain modifying limit, is critical. Cannabis has been utilized alongside different fixings to treat ailment, headache, jungle fever and cholera; to diminish transitions, encourage careful activities, loosen up nerves, reestablish hunger, for general prosperity; and it is additionally viewed as valuable for the working of the heart and liver. Furthermore, the cannabis plant gives food grain, oilseed and fiber for the assembling of sinewy items in select pieces of India.

Until the 1980s cannabis utilization doesn’t seem to have been viewed as an issue of significant social worry in India, with practically zero authority notice of over the top use. In India and Nepal, the utilization of cannabis seems, by all accounts, to be



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connected to strict celebrations like Shivaratri, Krishna Ashtami and cooperation in bhajan meetings, events like Holi, the celebration of tones are not finished without the sharing of bhang – a beverage made with cannabis. At such select events, ladies and young people were allowed to utilize bhang and different things produced using cannabis, including bites, desserts and curry. The arrangement made for ladies and youngsters to devour cannabis items in select social settings and determined structures demonstrates a solid social acknowledgment for cannabis inside India.

As noted before, the adherence to social standards on authorized utilize arose out of a solid relationship of cannabis with Lord Shiva. For instance, Sadhus of different organizations who principally love Lord Shiva utilize the medication for fortifying their fixation and otherworldly hunt. Before smoking cannabis, the sadhus acclaim their Lord and take it in his name, an example of utilization seen likewise among lay devotees. The example of utilization for smoking cannabis and opium likewise confines drug use, because as a gathering movement the clients just breathe in s multiple times from the line. Additionally, smoking the line is nevertheless a piece of social connection and not the sole action of the gathering. Sharing the medication is additionally not the aftereffect of any financial thought as is now and then found on account of heroin.

In any case, drug control activities set up techniques that made it hard to acquire these substances. Enactment of the Narcotic Drugs and Psychotropic Substances Act, 1985 and Amendments in 2001include arrangements for clinical use, yet there has been a pattern not exclusively to decrease the amount delivered by the public authority, yet additionally to straighten out procedural guidelines for acquiring the medications by conventional therapeutic experts. The subsequent powerlessness to source adequate licit cannabis for conventional use has constrained such professionals to make buys from the extending unlawful market.

present history

During the Covid -19 period’s month of September 2020, in a sensational twist to the actor Sushant Rajput death case, the Narcotics Control Bureau arrested the late actor’s girlfriend Rhea Chakraborty, her brother Showik and 10 others for the alleged possession, transportation and purchase of ganja and charas, all derivatives of the cannabis. In the charge sheet, the NCB says it has recovered 500 grams of weed and five grams of a dark brown substance to be hash from three suspects so far. The quantity recovered less than the 1 kilo specified as a small quantity under the NDPS Act, 1985.

Indeed, cannabis consumption is common across the country and does not attract the kind of stigma attached to other narcotic drugs and psychotropic substances being consumed illegally in India. The Government of India, Ministry of Social Justice and Empowerment has directed a National Survey on the degree and example of Substances Use in India through the National Drug Dependence Treatment Center (NDDTC) of the All India Institute of Medical Sciences (AIIMS), New Delhi. The Household Survey (HHS) was led among the agent, overall public (10-75 years of age) in all states and UTs of the country. At the public level, a sum of 200111 family units



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was visited in 186 areas and an aggregate of 473569 people was met. A Respondent Driven Sampling (RDS) study alongside a multiplier approach was led in 135 locales among 72642 individuals experiencing reliance on unlawful medications. Substance maltreatment of Cannabis (Bhang/Ganja/Charas) 2.8% of Indians (3.1 crore people) detailed having utilized any cannabis item inside the previous year (Bhang – 2% or 2.2 crore individuals; Ganja/Charas – 1.2% or 1.3 crore individuals) (AR-MSJE, 2019). Generally speaking, the previous year’s utilization of cannabis was higher among men (5 percent) than ladies (0.6 percent) and in the conditions of Uttar Pradesh, Punjab, Sikkim, Chhattisgarh and Delhi than in other states (WDR, 2019).

CONCLUSION

There has been much debate over legalizing marijuana. Globally, in the past decade, several countries have legalized the consumption of cannabis for medicinal purposes, while Uruguay and Canada have legalized it entirely. At present, 11 states in the US have legalized cannabis for recreational use, and another 16 for medicinal research. The reasons cited included marijuana being a less harmful drug, its widespread use and the fact that decriminalizing it would encourage more conversation around responsible drug consumption.

The consumption of cannabis has increased significantly despite the law in 1985, as per research by the Institute of Narcotics Studies Analysis (INSA), a New Delhi-based think-tank. Cannabis consumption and production cannot be controlled in India. There is no point in turning a blind eye to the millions who consume it across the country. Given the consumption, the arrests under the NDPS Act for cannabis are very little and largely done to heckle the common man. There are a lot of adulterated cannabis products on the market. These are far more harmful than the pure plant. But there is no way to control the quality of an illegal drug. However, there is no scientific study yet to conclusively prove that legalizing cannabis leads to a healthier relationship with drugs and substance abuse.

The recent news, India too votes to reclassify as the UN decides cannabis not, a dangerous narcotic. India has cast a ballot with the dominant part at the UN to eliminate cannabis and cannabis tar from the rundown of most perilous substance in the flagship international convention on narcotic drugs. Twenty-seven of the CND’s 53 member States including India, the United States and most European nations voted ‘Yes’ on the motion to delete cannabis and cannabis resin from Schedule IV of the 1961 convention. Twenty-five countries, including China, Russia and Pakistan, voted ‘No’ and there was one abstention by Ukraine. With the noteworthy vote, the UN said, the CND has made the way for perceiving the restorative and helpful capability of the regularly utilized yet at the same time to a great extent illicit sporting medication.

REFERENCES[1] Annual Report. (2019-20). Ministry of Social Justice and Empowerment, Government of India.

[2] Geetanjali. (1st Ed.). (2011). Drug Abuse in India. New Delhi: Centrum Press.



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[3] Jagadamba, G.V. and Murthy, O.N. (2013). Drug traffic in A.P. The Indian Police Journal, 60(2), 235–249.

[4] Kumar, I. (2012). Drug Control and Human Rights Violations. The Indian Police Journal, 59(2), 121–144.

[5] Mishra, R., Maithil, B.P., Verma, M.K., Pandey, P.K. (2008). Trends of illicit narcotic drug trading in Chhattisgarh state a data base study. The Indian Police Journal, 55(3), 35–42.

[6] The Narcotic Drugs and Psychotropic Substances Act, 1985.

[7] World Drug Report. (2019). Booklet 5, Cannabis and Hallucinogens. Austria: Division for Analysis and Public Affairs, United Nations Office on Drugs and Crime.


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20

The New-Normal in Education: Comprehending the Stages of Concern through

the Concerns-based Adoption Model (CBAM)

Rohini S Nair1 and Smitha Rajappan2

1,2Bhavan’s Royal Institute of Management

ABSTRACT

The outbreak of the pandemic has led to an overhaul of the entire education sector. The face-to-face mode of communication and classes had to be forcefully shifted to the online mode. With technology taking the major space in online education, modification of the pedagogy and methods were inevitable. The study is an attempt to understand the various concerns of teachers with the new online methodology using the Concerns-Based Adoption Model (CBAM). The study focuses on the stages of concern and tries to comprehend the stage in which majority of the teachers are. It was found that majority of them are in the collaboration stage. The study also tries to understand the impact of the stages of concern on the psychological well-being of teachers.

Keywords:Concerns-based Adoption Model (CBAM), Stages of Concern, Education, Teachers, Collaboration

INTRODUCTIONThe COVID-19 global pandemic is bringing out new challenges to every possible areas of the education sector. Change involves growth. Facilitating change requires focusing on individuals and the context. Online teaching platform is the area which is the need of the hour. But it is not that easy to change. It is important to identify the key concerns of teachers regarding the new method of online teaching in the present scenario. This may help academic leaders to identify the concerns of the teachers and focus on innovative methods in teaching and learning. Adapting to the new normal demands considerable modifications to the entire educational system as well as the teaching pedagogy.

The new platform involves several uncertainties as well. Uncertainties related to the implementation, usage, and outcomes are the most evident and which raise several concerns. Stress among teachers and students is unavoidable in this uncertain situation. This will have an impact on their mental well-being. Teachers are facing the stress of a great shift form the normal classroom teaching and learning scenario. Adding on to this, the requirement of technical knowledge has doubled the levels of



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anxiety among majority of them. To overcome this, a proper support system must be incorporated with a view to improving the mental well-being of teachers.

While adopting an innovative idea, the individuals involved are faced with several apprehensions. The level of these concerns varies from one individual to the other. In this demanding times, as virtual platforms are the need of the hour, many teachers are faced with the difficulty of handling technology, which is completely an alien though to many teachers. Being used to face-to-face communication, this sudden transition has left many baffled. If left unattended, these concerns might elevate to higher levels, ultimately affecting the quality of education. The study attempts to comprehend the concerns of teachers in this digital era through the framework of concerns-based adoption model (CBAM) and theoretically trying to capture its influence on their psychological well-being.

THEORETICAL FRAMEWORK

the ConCerns-bAseD ADoption moDel (CbAm)Change is an inevitable component behind any innovation. The process of change must be managed positively and efficiently to ensure the smooth functioning of any system. It is essential to understand how change is managed as well as the various concerns faced during the process of change. Not attending to these concerns might destroy the innovation altogether. In order to closely address the various concerns faced during the implementation of change, the concerns-based adoption model (CBAM) was designed. The model was the result of the works of Francis Fuller (1969) in collaboration with various other researchers of the time. The model evolved as a response to understanding the response to the change in the educational system during 1960s and 1970s. The model was greatly applied to understanding the response of teachers towards the implementation of innovations in education (Hall, et al., 1973).

CBAM provides a deeper view into the process of change and the response of individuals involved to the change. The model also addresses the several concerns and the extend of use of the innovation by the individuals involved. The process of change is believed to be kick started by individuals, usually referred to as the adopter. One of the earliest applications of CBAM included identifying the events following when teachers are presented with a change (Hall, et.al., 1973). It largely attempts to describe the process of change and further to how people respond to the change. Understanding their response to change is critical as it assists to decide if the implementation of change was successful or not. Hall and Hord (1987) have also described that the model focuses on the way people, especially, teachers, students, parents react to change.

Change is usually followed by an immediate resistance to it. The resistance strengthens when it is left unattended. So, the researchers extended the scope of CBAM to include not just how people respond to change, but also to understand the concerns they face and how to effectively attend to them. The model is a framework which helps to focus on the concerns during change as well. It forms


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the foundation for responding to the concerns and to effectively manage resisters and to instill confidence in them to positively embrace the innovation. Managing the resistance, in fact, is a great challenge. Effective handling of resistance enables to reap the complete benefits of the innovation. The researchers observed this fact that individuals adopting an innovation certainly were faced with definite concerns. This led to the modification of the concerns-based adoption model to include three diagnostic dimensions to clearly provide an insight into the pattern of usage and the levels of concerns.

The CBAM consists of 3 diagnostic dimensions – Innovation configurations, stages of concern and levels of use. Innovation configurations provides an overview of the change and its effective implementation as envisioned by the change implementers. It throws light on what is expected from the change. This clarifies any difference in expectations before, during and after the change process. Stages of concern helps to identify the attitude and beliefs of the members towards a new initiative or innovation. It describes the feelings and thoughts of people towards innovation. Levels of use describes the usage of the new initiative. It shows the extent of usage of the new programme. It may range from no use to advanced use. The different stages of concern and the levels of use together provide a powerful portrayal of the dynamics of an individual involved in change. Each employee will belong to a different stage of concern and level of use during a particular innovation. This entire framework identifies the requirements and special needs of the individuals involved in the change process and help to devise suitable plans of action to attend to these needs.

The pandemic of 2020 has pushed every sector and almost every kind of work to go online. Education is also no different. Though online education has been existing, the system has moved online in its entirety due to the pandemic. Schools, colleges, universities are now relying completely on various online platforms to conduct classes. For majority of teachers and students, this is an entirely new experience. It could, thus, be considered to be a new initiative. Due to its novelty for majority of teachers, they experience several issues, concerns and have varying attitudes and issues towards this. For many teachers, the world of computers, laptops and internet are, in fact, alien. Under such circumstances, to manage the technological aspects and the classes together is a challenge that they face. Adding on to the stress, is the thought of how effective they would be through the new medium. So, the present study is an attempt to focus and understand the diagnostic dimension –stages of concern, which will aid in identifying the various concerns of teachers in the present situation.

stAges of ConCern: teAChers AnD the online teAChing methoDology

In the process of adopting a new idea, people involved will encounter several difficult situations, which must be overcome for the idea or innovation to be successful. Different people respond to innovations differently. This depends on their awareness of the idea or innovation as well as their attitude and belief towards it. According to CBAM, there are seven stages of concern. These stages are representative of the



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level of awareness and easiness of adopting the innovation as well as the interest to be involved in it and to use it to further their efficiency. They are called stages because they progress one level to the other. As one concern diminishes, another concern might emerge.. The stages progresses from little to no concern. The various stages of concern as per the model illustrating the concerns about new method in teaching put forth by Fuller (1969) are:

Refocusing (6): This stage explains that the individual focus on exploring better ways to get greater benefits form the innovation, including the intention to modify it or to replace it.

Collaboration (5): The individual focuses on joining forces and cooperating with others to uncover the potential of the innovation and also the excitement to share the learnings with others.

Consequence (4): The individual expresses the concerns about the level of impact of the innovation on students as well as about the feedback form them.

Management (3): The focus of the individual is on the time taken to integrate the innovation into the existing approach and to put information and resources to its best use. Issues related to efficiency, organizing, managing, and scheduling dominate.

Personal (2): The individual is concerned about the demands of the innovation and if the individual is capable enough to meet those demands. Are the skills adequate?

The individual is also concerned about the consequences of the innovation and its effect on the reward structure of the organization. This stages also addresses the concern of the employee about his or her role in decision-making. Concerns might involve the financial or status implications of the program for the individual and his or her colleagues.

Informational (1): The individual exhibits awareness about the innovation and also establishes interest to learn more about it. The individual does not seem to be worried about himself or herself in relation to the innovation.

Unconcerned (0): This stage describes that the individual expresses little or no concern about the innovation.

Each stage expresses a different concern which must be addressed to at the earliest. Every concern has a direct influence on the effectiveness of teachers. Having a fair knowledge about the innovation will not guarantee its effective use. Awareness coupled with proper implementation, right skills and abilities and good design leads to its success. Several factors, including individual’s perception and environmental and institutional factors affect how quickly one moves to a higher level of concern. And for teachers, this escalating concern directly impacts on the quality of education offered.

The challenges of using and integrating technology is immense, especially, for school teachers, and this pandemic has made it even worse. The difficulty of using online platforms coupled with connectivity issues and other technological aspects, has placed a huge demand on teachers’ shoulders. As they are learning to embrace the new normal in education, they come across several concerns, and if unattended,



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might cause a great dip in their efficiency, the impact of which will be felt on the students and the overall quality of education. Different teachers might be at the different stages of concern depending on the individual, institutional and other general factors. The study tries to understand the most prominent stage of concern among the school teachers in this era of pandemic.

The panic and varying anxieties experienced by teachers during this time of online education can be said to have impacted their psychological well-being. Teachers are very much used to having face-to-face interactions with the students, and this is what has left them passionate about their profession. The sudden shift in medium has caused considerable burnout among teachers. They were, in fact, forced to pick up technical skills without the benefit of an effective and formal training sessions. But majority of them have emerged victorious by fighting against all odds including, technical know-how, virtual platforms and resources and internet protocols. This is the end result of an ongoing battle which they manage to fight every day, for which they experience elevated levels of stress and burnout. The demand of delivering quality learning through the virtual platform by modifying the pedagogy, in fact, has been, is been and will be an extremely taxing experience for the teachers. Even more is the daily increasing demands of parents, majority of whom are the ambassadors of “no school, no fees”. They struggle to engage students, deliver lessons effectively as well as assess the learning outcomes through a platform, which is the unavoidable aspect of the new normal. All this undoubtedly affects the psychological well-being of teachers.

The impact on psychological well-being varies according to the concerns experienced by the teachers with respect to online teaching. Teachers who are quite aware and have the technical know-how, might find it to be less challenging than those without any technical knowledge. The experience of well-being varies with the different stages of concern.

RESEARCH METHODSFor the conduct of this study, 15 CBSE schools in Ernakulum District were selected for participation on the basis of convenience. 100 teachers were selected from the lower primary and upper primary grade for the study. Data was collected through a structured questionnaire and was carried out online due to the situational constraints.

RESEARCH INSTRUMENTSuccessfully implementing a methodology in teaching involves more than providing them materials and training. It is important to give importance to human elements and their concerns- those people actually doing the work. Each of them will respond to a new change with unique attitudes and belief. The Concern Based Adoption Model (CBAM) was used to accelerate the understanding of the different concerns about the new teaching methodology.

For measuring the concerns of teachers, the stages of concerns questionnaire by Archie A. George, PhD Gene E. Hall, PhD Suzanne M. Stiegel Bauer was used. According to this scale seven stages are included in this stages of concerns



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questionnaire. These stages include a) Unconcerned b) Informational c) Personal d) Management e) Consequence f) Collaboration and g) Refocusing. The Stages of Concern Questionnaire (SoCQ) is the standard tool for determining where an individual is in the stages.

DisCussion of results

Reliability

Cronbach’s Alpha value for school teachers selected for this study is given belowTable 1: Reliability Statistics

Stage 0 1 2 3 4 5 6

Reliability 0..85 0.60 0.67 0.73 0.72 0.60 0.67

The study aimed to understand the stage of concern in which majority of the teachers are in this scenario. Due to variation in several personal and environmental factors, the stage in which each one is will vary. It might affect their mindset and interest to be involved in the online methodology.

Figure 1 – Teachers in Various Stages of Concern

The result indicates that majority of the teachers are interested in collaboration, the fifth stage of

concern. They are interested and excited about interacting and collaborating with their fellow

mates to share knowledge and learnings with each other. This would enable them to incorporate

their ideas and to uncover and design a better methodology to ensure efficient conduct of the

online sessions. Teachers who have little knowledge about the technological aspects will also be

benefitted through this collaborative effort. The result also shows that the second stage of

concern for the teachers is informational. They are curious to involve and learn in depth about

the new methodology.

Figure 2 – Stages of Concern and Age

Unconcerned

Informational

Personal

Management

Consequence

Collaboration

Refocusing

Unconcerned Informational Personal Management Consequence Collaboration Refocusing

31-41 years Above 41 years

Fig. 1: Teachers in Various Stages of Concern

The result indicates that majority of the teachers are interested in collaboration, the fifth stage of concern. They are interested and excited about interacting and collaborating with their fellow mates to share knowledge and learnings with each other. This would enable them to incorporate their ideas and to uncover and design a better methodology to ensure efficient conduct of the online sessions. Teachers who have little knowledge about the technological aspects will also be benefitted through this collaborative effort. The result also shows that the second stage of concern for the teachers is informational. They are curious to involve and learn in depth about the new methodology.



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Fig. 2: Stages of Concern and Age

Variations in the stages of concerns were observed according to the demographics. Teachers in the age group of 31-41 years were found to be in the unconcerned stage than teachers in the age group of above 41 years. They were also found to be inquisitive and curious about the new teaching approach and also much more interested in collaborating with colleagues to share knowledge and achieve better results. It is also seen that they are less concerned about the consequences that the new methodology might have. Techers in the age group of above 41 years are found to be a bit concerned about the online methodology and its effectiveness. They might also be facing issues with adjusting to the technological aspects, which can be a probable reason for their concern and anxiety. The curiosity in learning and completely involving in the new online method is also found to be less among older teachers. They are also found to be concerned about the consequences and the effect of this method on their teaching and overall performance. These teachers are interested to explore the possibilities of the new methodology and to understand how this system will enhance and supplement the classroom teaching.

Fig. 3: Stages of Concern and Years of Experience



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Work experience is an important aspect which decides the extent of adaptation and comfort in a profession. The above analysis shows that, based on the work experience, majority of the teachers with above 10 years of experience are in the collaboration stage, followed by being concerned about the consequence of the online methodology. The next majority fall in the informational stage and then the refocusing stage. This highlights their interest of being involved and efficiently manage the new methodology. Majority of the teachers with an experience of 5-10 years are in the informational stage and collaboration stage and closely followed by teachers in the refocusing stage. They are seen to be comparatively less concerned about the consequence. They also seem to be less concerned about organizing themselves for the new method and incorporating it into their technique.

Overall, the analyses show that teachers have progressed to the collaborative mode. They have been engaged in this online mode for some time now. This may have triggered their interest to collaborate and share information and learnings with their colleagues and students. Majority of them have overcome the various concerns and have started to get adapted to the online mode. Rather, it can also be seen that teachers are in multiple stages as well.

stAges of ConCern AnD psyChologiCAl well-being

The current pandemic has brought a tremendous change to our ways of teaching and learning.

Educators are vested with several responsibilities, apart from teaching. They take up numerous roles, which adds on to their work pressure. Especially in times of pandemic, stress tends to double. So, the physical and mental well-being of teachers must be given priority. The changing technologies and culture put teachers under a lot of stress. This stress, in turn, affects their Psychological Well-Being (PWB). According to WHO, psychological well-being is described as the experience of complete physical, mental and social well-being and is not just about the absence of disease (Ryff & Singer, 1998). Research studies have acknowledged that the experience of greater psychological well-being result in happy, healthier and longer lives and also uncover better quality of life.

According to Carol Ryff (1989), psychological well-being consisted of 6 dimensions: autonomy, environmental mastery, personal growth, positive relations with others, purpose in life, self-acceptance. The dimensions are explained below in detail (Ryff, 1989): 1) Autonomy: Self-determination, independence and regulation of behavior from within. 2) Environmental Mastery: The ability to develop in the world and change it creatively by engaging in physical or mental activities. 3) Personal Growth: Developing one’s capacity to grow and expand from birth to death.4) Positive Relations with Others: Having close interpersonal relations based on trust; ability to love..5)Purpose in Life: Having intentions, goals and sense of direction. 6)Self-acceptance. -The center of mental health; characteristic of self-actualization, optimal functioning, and maturity.



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The remote working culture has substantially increased teachers’ workload, with a recent study indicating that some teachers were working an extra 20 hours per week. Teachers those who are from low socio economic or disadvantaged schools faces additional barriers and having perform their roles with less support and less resources. Reduced opportunities for teachers to collaborate and work with colleagues is another area where teachers felt stressed and shown impact on their performance and commitment to the profession. Based on the study conducted by Kawada, Otsuka, Inagaki, Wakayama et al. (2011) positive lifestyle has a significant impact on Psychological wellbeing and quality of work life. Psychological wellbeing (PWB) positively influence individuals work life and over all well –being and negatively influence job satisfaction, stress, boredom, frustration Al-Qutop & Harrim, (2011).

IMPLICATIONS The concern-based adoption model helps the academic leaders to understand the process of change and how people respond to the new change. And also help them to ensure the success of the change initiative. The stages of concerns describe seven categories of concerns related to an innovation or a change. Techers who are there in the earlier stages of a change process will likely have more self -focused concerns, such as concerned about whether they can learn the new methodology or how it will affect their performance and personal growth. As teachers become more comfortable with new online methodology of teaching their concerns shift to focus broader impact, such as the effect of this new methodology with their students and with colleagues.

In the context of teaching, literature have shown a significant impact on mental health of the teachers and academic performance of the students. Thus teacher’s happiness and psychological well- being are influencing the student’s happiness and well-being. Today teaching is a profession associated with high stress and responsibility. And teachers are put under high stress because of the unexpected change in the new teaching methodology. In this regard this study tried to understand the concerns of teachers regarding the new normal teaching pedagogy and how that will influence their psychological well –being. Psychological well-being (PWB) is concerned with an individual’s judgement regarding his/her continual happiness; satisfaction with his/her physical and mental health, and how it relates to some psychosocial factors such as life satisfaction or work satisfaction (Garg & Rastogi, 2009).

REFERENCES[1] Fuller, F.F. (1969). Concerns of teachers: A developmental conceptualization. American

Educational Research Journal, 6(2), 207–226.

[2] Garg, P., & Rastogi, R. (2009). Effect of psychological wellbeing on organizational commitment of employees. The Icfai University Journal of Organizational Behavior, 8(2), 42-51.

[3] Hall G.E., Hord S.M .(1987). Change in Schools: Facilitating The Process. State University Press, Albany.

[4] Hall, G.E., Wallace, R.C., and Dossett, W.A. (1973). A Developmental Conceptualization of the Adoption Process Within Educational Institutions (Research and Development Centre for Teacher Education, University of Texas, Austin).



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[5] Martin, J.J., McCaughtry, N., Hodges-Kulinna, P. & Cothran, D. (2008). The influences of professional development on teachers’ self-efficacy toward educational change. Physical Education and Sport Pedagogy, 13(2), 171-190. https://doi.org/10.1080/17408980701345683

[6] Saunders, R.R. (2012). Assessment of professional development for teachers in the vocational education and training sector: An examination of the Concerns Based Adoption Model. Australian Journal of Education (ACER Press), 56(2), 182-204.

[7] https://www.centralriversaea.org/curriculum/assessment/concerns-based-adoption-model cbam/#:~:text=The%20Concerns%2DBased%20Adoption%20Model%20(CBAM)%20is%20use d%20to,how%20individuals%20respond%20to%20change

[8] https://timesofindia.indiatimes.com/blogs/edutrends-india/teacher-wellbeing-self-care-in-covid-times/


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21

Marks & Spencer: Brand’s Strategic Expansion and Sustainable Growth in India

Priyanka Rawal1 and Ankush Sharma2

1,,2Jagran Lakecity University, Bhopal (MP)

ABSTRACT

Being one of the biggest multinational retail company Marks & Spencer product portfolio comprises of food, home, personal care and apparels category. Indian retail sector is likely to grow due to the opportunities for expansion along with being a strategic market for many international brands striving to deliver value to consumer’s needs and preferences across different age groups. In terms of brand awareness M&S is more established in India than other markets, thereby prioritizing its long term goal plans in the country. In another five years this fashion and accessories retailer plans to reach a figure of 100 stores in Indian market, thereby making its presence widespread. As a part of their retail strategy M&S is focusing on smaller store formats for beauty, lingerie etc due to changing psychographics of Indian consumers. The research focuses on understanding the retail landscape and growth journey of M&S and its foray into the Indian market. It also talks about the dynamics of marketing and consumption patterns which are deeply impacted by uncontrollable environmental forces thereby hampering the business growth of any country. Paper also highlights and discusses the challenges and path ahead for M&S in Indian market post Covid -19 scenario.

Keywords:Customer, Retail, Strategy, Product Portfolio, Environmental Force, Marketing Communications

INTRODUCTIONAn iconic brand in Britain, Marks and Spencer has almost 1300 stores across the world that produces high quality clothing products for women, men and kids wear along with selling gifts, home furnishings, beauty products and foods. Headquartered in Westminister, London M&S was founded by Michael Marks almost 134 years ago in 1884 in Leeds UK. M&S continues to expand its retail presence across world due to its reputation for high quality and a strong belief on principles of value innovation, trust and quality. Operating in a very competitive environment the brand has to continuously keep up with changing clothing trends as per consumer preferences and tastes in order to stay ahead of competitors in the market. In Asia India is already the fastest growing market with growing demand seen for international brands. Rapid increase in the number of internet users in India is making the country the world’s fastest growing e-commerce market. The Indian



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e-commerce market is set to grow and is expected to cross 200 bn mark by 2026.Also Indian retail landscape is mostly dominated by the unorganized players with a contribution of 88% to the total retail sector in India. By 2021 it is forecasted that the organized retail space will increase to 23-25%.

Under such projected figures the organized retail marketplace, is likely to reach around $140-160 bn. As per figure 1 we can see that pre COVID-19 Indian retail sector was expected to witness a growth of $1.3 trillion by year 2020, but the number may show a decline due to lockdown seen worldwide. During this period of sluggish growth it can be assumed that the number of online shoppers will definitely grow and can be a good source of revenue generation for brands.

A great penetration of the global brands in small cities of India can be seen and consumers are able to have an access of the foreign brands due to the increase in purchasing power of consumers. Increasing consumerism can also be seen due to foreign direct investment, ultimately uplifting the lifestyle of Indian consumers. With easy in FDI policy even India now enjoys the consumption pattern seen worldwide. Retailing has also witnessed the changing GST regimen which has attracted lot many foreign brands to invest in Indian market due to a single framework pertinent to a large variety of investment practices.

MARKS & SPENCER: THE INDIAN WAYBeing one of the most successful brands in UK Marks & Spencer is looking to augment its global presence, by carefully analyzing the local market trends. One such market which M&S felt not only promising but had a steady development and acceptance to global brands has been India. The growth of Indian middle class consumers has opened the doorway to provide quality products suiting to their tastes and preferences.In 2001 Marks & Spencer entered the Indian market as a part of franchise agreement, and later in 2008 made a joint-venture agreement with Reliance Retail to expand its Indian operations. India is a strategic market with acceptance of global brands and a huge potential to tap. Marks and Spencer Group Plc. (M&S), has a joint venture with Reliance Retail Ltd, and has almost 62 stores outside UK. It is increasing its online reach in India through fashion platforms such as Myntra, Ajio and Amazon. India is increasingly becoming a competitive market and is seen in line with international fashion trends with over 2 billion population, thereby giving M&S a larger clientele and opportunities to increase profits. M&S now has 76 stores across country with almost 32 cities and has growth plans for Indian market. In FY 2017-18 M&S clocked a turnover of Rs 908 crore in India and expect to continue its growth momentum further in the next fiscal. After targeting the affluent consumers from metro cities like Delhi and Mumbai brand now focuses its expansion in tier II & tier III cities giving Indian middle class consumers an opportunity to feel the brand.

Lifestyle changes are encouraging more and more Indian consumers to choose western wear which has a strong focus on quality fashion for both urban men and women. In terms of fashion Indian consumers are aware of global trends and also on the lookout for brands at great value. Essential aspect of M&S India strategy



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is customization to suit the distinctive tastes of Indian consumers who prefer lot of variety in colors unlike any other market. Also styles in apparels for various categories needs to be tailor made as per Indian consumers. Also changes in pack sizes can be seen as per their purchasing capacity. Localization also enables brand to offer competitive prices to customers. Marks & Spencer in India reported revenue of nearly 900 crore during 2018 financial year with an annual growth of nearly 10% in last 4-5 years. Internet penetration, robust demographics together with strong macroeconomic factors will drive the retail growth which is projected to increase to 12-13 % by 2020.Indian consumers are also shopping online; hence brand has its presence in fast growing online sales through e-commerce websites such as Amazon and Flipkart which still need to compete with higher sales numbers from physical formats.

strAtegiC expAnsion in inDiAn mArket

For any successful global brand one of the most important aspects to grow business through globalization is a right and well thought of marketing plan that ensures the success rate of brand wanting to generate profitability in the international market. M&S, thus left no stone unturned and took a survey and did a careful research on the following parameters:

Swiftness

This talks about how fast can any brand enters in a foreign market and in case of M&S it could enter Indian market strategically using business models of franchising and joint venture with reliance retail which is a leading Indian organization. This partnership leveraged Marks & Spencer to run its stores in India by holding 51% of the stakes.

Expenditure

The cost of any project plays a significant role in the success of any brand and thus expenditure includes how much the project will will cost. Keeping in mind the market growth in the next 10 years, £29 million from both partners was planned as a total initial investment, with an additional investment of £750 million for expanding its operations.

Flexibility

Flexibility defines the level of difficulty to start business in international market .India is a foreign investment friendly market and the laws governing this market has made entry of M&S smooth to continue its operations.

Risk Involved

Another major factor to understand is how safe is the Indian market to enter to make the growth condition conductive for M&S. Certain amount of risk is part of any business strategy but with proper market research risks of failure can be minimized to a greater extent.



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Profit Expectations

For any global market aiming to reach diverse markets it is important to understand at which stage of PLC the brand will make profits. M&S has been doing really well in other select markets, keeping in view the cultural diversity and the product adoption and consumption curves Marks & Spencer is making profits by not only entering into tier 2 & tier 3 towns of India but also customizing the marketing mix as per the localized tastes and preferences.

Continuing Objective

For any organization sustainability is the key to stay and serve its market .Indian market is highly promising and M&S wishes to stay in India by making its stay long and fruitful. The iconic British brand Marks & Spencer Reliance India, has been persistent in its growth and expansion in the market with a strong financial performance as seen in financial year 2018-19.

Increasing Market Relevance

Being relevant to the target customers is the key for profitability. Indian consumers are fashion conscious and also are inquisitive about discovering newer ways to experiment with clothing. M & S India collections create balance by providing a mix of western contemporary fashion with pricing strategy that would appeal to India’s price sensitive consumers. To attract consumers’ Indian specific marketing campaign titled “Rethink” was launched to boost consumer awareness and drive footfall to stores.

strAtegiC positioning

Creating a unique image in the consumers mind plays a significant role in marketing products to target audiences. India s apparel market is growing is and to succeed M&S has to ensure positioning gets right and also being communicated well to consumers. India has a family centric culture and given its product range an appropriate positioning would be the second option. Brands first foray into Indian market with franchisee model with a positioning that was focused as a brand which wants a premium and an aspirational brand image was totally off. To position itself as a brand known for the family with attractive price/quality ratio M&S pricing and positioning was right with its partnership with Reliance but could not escape being affected by the global slowdown. For Marks & Spencer in India Grey group created an ad campaign particularly intended to appeal Indian consumer’s fashionable side, after understanding the brand’s acceptability. These engaging advertisements were shot in street style environment challenging people to “Rethink” about the latest trends and occasions and were run across different media vehicles like print, social, digital, OOH and in-store communications. This campaign also instigates the fashion forward shoppers to explore their personality along with being a brand known for being a trend setter (Fig 2).



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Fig 2: Rethink Campaign in IndiaSource: https://brandequity.economictimes.indiatimes.com/news/advertising/marks-spencer-and-grey- launch-rethink-campaign-in-India/67951777

MACRO ENVIRONMENTAL IMPACT FROM CORONA VIRUS OUTBREAK ON RETAIL BUSINESS The biggest challenge worldwide seen as of today is to cope up with COVID-19 impact on retail sales globally. This macro environmental force has disrupted business and economy to a greater extent, thereby giving brands reason to think and work on their strategic moves to curb losses. Social distancing and lockdown has created a huge setback across all markets for M&S, India being one of them. No one could ever imagine life would all of a sudden come to a standstill, as the beginning of 2020 saw the spread of corona virus which is dangerous not only to the health of people but also their livelihood. Even India which is a $2.9 trillion economy is badly affected and has reached the stage where the government and citizens are on the highest alert inspite of an early lockdown as compared to other countries. Reports and data from Retailers Association of India have revealed that due to ongoing lockdown most stores related to garments, electronic durables, furniture, and many more across country have been closed across the country, except shops selling critical food & grocery. The alarming signal is no retailer has the clue how long this scenario would exist making them revamp their marketing strategies by making contingency plans. It is also estimated that the Indian retail sector would take minimum 9-12 months as only 8% of the industry is functioning so as to recover losses in sales due to outbreak of corona virus pandemic.

Apparel brands are also strongly hit and will have to face 50-60% of losses in the first quarter of financial year 2020-21.Many brands such as Label life has come up with a work–from-home collection which are not only comfortable and yet look stylish during quarantine , post COVID-19 so as to meet changing consumer demand. Such a move is helping brands to stay connected with their consumers during tough times. Due to significant drop in footfalls a high inventory level can be seen across all apparel brands. This has stopped new launches of fall-winter collection by brands as it would lead to excess inventory which will be unmanageable. Moving towards a more flexible supply chain model is the need of the hour and brands will have to change their business model and adapt to changing consumer behaviour.



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British retailer Marks & Spencer over coming few months will also see sluggish sales in its clothing and international businesses due to corona virus pandemic. The group also will not be paying a final dividend for FY 2019-20, resulting in saving 130 million pounds and are determined to support their customers. They have also redeployed around 4600 employees to support its food business in such tough times.

M&S will be going for a prolonged downturn as a part of their strategy in demand for clothing and home goods, focusing more on its food business to trade profitably throughout. They are also prepared to close down some stores on a temporary basis to curb losses. Not going ahead with non essential recruitments ,cutting marketing spends, deferring all pay increases, redeployment of staff into food business and postponing capital spending commitments are some more strategies brand is implementing until the ill effects of corona virus is visible. As the world is still witnessing the ill effects of Corona, organizations have started to revamp their marketing strategies towards digital platforms. Company needs to continuously work on building its brand image on fashion to support innovation and value.

FUTURE AHEADWith almost 75 plus stores that are spread across various cities like Delhi, Mumbai, Kanpur, Lucknow, Amritsar, Pune, Chandigarh, Kolkata and many more M&S, India has been expanding at a steady clip with respect to store expansion and revenues. For world’s leading fast fashion retailers Thus to stay ahead among all competition and being continuously relevant, challenges are bound to exist. Prior to lockdown M&S has expansion plans to open nearly 100 more stores in the global market along with improving supplier relations to provide quality products. But as of now there is strategy reformation and good revenue generation from brick and mortar stores is still a question that only time can answer. Technological improvements and digital marketing will push Marks & Spencer to attain competitive advantage across various markets. Talking specifically about Indian market, by bringing more tailor made and pertinent quality product portfolio and being relevant through e commerce and digitization will result in creating, communicating and delivering value to appeal Indian customers than ever before. Hence focus on improving its e-commerce presence and operation to enhance a multi-channel offering would be a success mantra for Marks and Spencer in today’s e-tailing landscape. Eventually the capability to offer right marketing mix for an exceptional customer experience would be a major force in any M&S future strategy globally.

REFERENCES:[1] https://www.indiaretailing.com/2011/09/13/retail/customization-is-essential-plank-of-ms-

india-strategy/

[2] https://writepass.com/journal/2012/12/analysis-of-marks-and-spencers-past-failures-and-present-developments/

[3] h t tps ://www.campa ign l ive . co .uk/ar t i c l e/superbrands-case-s tud ies -marks-spencer/233544?src_site=brandrepublic

[4] https://www.financialexpress.com/industry/marks-spencer-knows-what-women-want/1511643/



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[5] https://www.marketingweek.com/marks-spencer-one-brand-marketing-strategy/

[6] https://www.business-standard.com/article/news-ani/marks-spencer-reliance-continues-to-deliver-sustainable-growth-in-india-119110500505_1.html

[7] https://www.aninews.in/news/business/marks-spencer-reliance-continues-to-deliver-sustainable-growth-in-india20191105121932/

[8] https://www.ibef.org/industry/retail-india.aspx

[9] https://www.investindia.gov.in/sector/retail-e-commerce

[10] https://www.indianretailer.com/article/whats-hot/trends/how-ongoing-lockdown-continues-to-cause-havoc-on-the-health-of-retail-industry.a6553/

[11] https://www.bbc.com/news/business-51972422

[12] https://www.firstpost.com/business/britains-marks-and-spencer-warns-of-severe-impact-from-coronavirus-outbreak-not-to-pay-final-dividend-for-2019-20-8171891.html

[13] https://www.ii.co.uk/analysis-commentary/ii-view-ms-scraps-dividend-save-cash-ii510999

[14] https://www.indiatoday.in/business/story/marks-spencer-warns-of-severe-impact-from-coronavirus-1657849-2020-03-20

[15] https://timesofindia.indiatimes.com/business/india-business/marks-spencer-didnt-want-to-locate-food-units-in-india/articleshow/68300731.cms


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Employee Turnover: A Conceptual Framework

Sindhu. S. Pillai1, Rincy. V. Mathew2 and M.K. Prasanth3

1Annamalai University, Chidambaram 2,3Institute of Management and Technology, Punnapra

ABSTRACT

“Substitution of Employees” may be a term that is widely used in business. The change of workers is that the proportion of co-employees departs for a certain period. Even though it’s most often expressed on annual employee turnover, the calculation is often completed a shorter or longer period. This paper has proposed a conceptual frame work which shows that the main influencer turnover tariff in the Trivandrum district banking sector. A conceptual framework shows how researchers view concepts involved during the study, especially the relationship between variables

Keywords:Turnover Level, Conceptual Frame Work, New Generation, Bank Employees

INTRODUCTION AND BACKGROUND

Over the past few years, the private banking sector in India has seen extraordinary growth and now among the main income generators in the commission sector. Banking reform is implemented with differences in the Narasimhan Commission (Narasymhan Committee, 1991) report. Fixed from private banks and foreign banks after deregularization, have caused a lot of competition, to attract and retain customers, adapting new technologies. This has resulted in new challenges for workers. The main defy faced by the private banking sector cannot hold employees. The Indian banking system is in the eyes of typhoon rates. Organizations in India must provide serious consideration on what drives employee promises. The change of workers has become a problem that never ends faced in Indian organizations thanks to no rewards for justice, fewer opportunities in career growth, dissatisfaction with superiors later. Maintaining committed and experienced employees is very important in avoiding the cost of turnover that can run even in crores for large giants in the banking sector. Experienced employees are often useful even in handling competitions. Even the most important modern engine cannot replace the efficiency of citizens. Therefore, talent management has been wearing important aspects of the most important business. For this reason it becomes very important for HR managers to find out the factors that encourage employees to get out of the corporation. There are a number of things that contribute to turnover rates.



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They are economics, organizational performance, organizational culture, work characteristics, unrealistic expectations, demographics etc. Aggressive global players enhance their operations in India, thanks to the benefits offered by India Industry; Indian banking co is also preparing to knock markets throughout the world. The same time the worker’s change runs high. Thanks to this reason this study will help Banking Co in India in mapping explanations for turnover and steps to be adopted to reduce changes with the applicable standards in other industries. The Deloitte Firm Consulture has begun with a talent priority survey entitled “Talent 2020”, which talks about how the mastery of employees is negatively correlated to show intention. The purpose of this paper is to propose a conceptual framework for Turnover rates.

PAST STUDIES ON REPLACEMENT OF EMPLOYEES

The change of employee is that the rotation of workers surrounds the labor market; between companies, employment and work. The serious challenge faced by the organization is to maintain employees employed in the organization. When employees leave the organization, this may not only have an impact on the organization but also on the workforce itself. Prices and Muller (1981) have observed that work dissatisfaction affects the actual change indirectly through the direct effect on the intention of change. Variables that affect job satisfaction are salary, promotional opportunities, direct supervisors, suburban benefits, contingent benefits, rules and procedures, relationships with coworkers, jobs, and communication in the organization. Manu et al. (2004) argue that employees quit organizations thanks to economic reasons.

Using the Mich et al economic model. (2001) has shown that people quit organizations thanks to economic reasons and this often will not predict the change of labor in the market. Organizational characters affect Turnover rates. Jackson (1981) and Stear (1991) have stated in their study that the main turnover is caused by UN happiness with work, inadequate compensation, unrealistic conditions and unrealistic expectations. Chan et al. (2010) also states that Turnover rates are a significant problem, especially in the field of human resource management.

CONCEPTUAL FRAMEWORK

A conceptual framework shows how researchers view concepts involved during the study, especially the relationship between the concept “. Designing conceptual models begins with a radical literature review. Supporting previous findings from theoretical literature and therefore the need for further study, below is that the skeleton Research proposed for this study To stop or leave the organization (Elangovan, 2001). Therefore, there are no better benchmarks will be more appropriate to live out behavior than the intention of change.



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Independent Variables and Dependent Variable

Socio Demographic Factors

Quality of Work Life

Employee Turnover

o

Pay

Organizational Support

Organizational Climate

Employee Turnover

Fig. 1: Independent Variables and Dependent Variable

soCiAl DemogrAphiC fACtors

Age, term of office, education level, income level, work and gender categories are proven to affect employee retention and are found to have a well-established relationship with the intention of change. Among the demographic factors above age, the level of ownership and income was found negatively related to the intention of turnover (price and Muller 1986), the level of education was positively related to the turnover because the employee with the education level had a higher tendency to stop (cotton and Tuttle, 1996), with reference to the work category, TAI and Robinson (1998) and prices and Muller (1986) found that non-managerial employees have a higher tendency to stop than managerial employees.

stressful work life

Stress work life is one of the big problems while this global world. Work and life are complicated and difficult to stay in a tight water compartment (Mathew and Panchanatham, 2010 and 2011). Many workers often or greatly feel the level of stress thanks to work. The balance of work life is increasingly important for involvement and influencing retention. Hyman et al (2003) has noted that in an investigation at UK found that labor intervention demands personal life (see for example; work for weekends) resulting in increased stress and emotional fatigue among the workers. RAM Lall (2003) has emphasized the need to recognize the individual needs of an employee in a company and it will encourage commitment and supply the appropriate work environment. Jawahar Rani and Muzhumathi (2012) have also found that women professionals (lectures, bank officers, doctors and engineers) with



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high WFC have higher work stress. This example is related to the current stop behavior has not been determined in the Indian banking system.

orgAnizAtionAl support

Organizational support reflects the general beliefs of employees that their organization respects their contributions and concerns about their welfare. The provision of organizational support to an employee may make a feeling of good intentions to the organization, strengthening the bond between employers and employees, who are consecutive, increasing the emotions of the obligation to repay the organization through the norms back and forth. Organizational support must be positively related to influencing organizational commitment and negatively related to the intention of change. Jackson and Stear (1981) have stated in their study that the main turnover is caused by unhappiness with work, inadequate compensation, unrealistic conditions and unrealistic expectations.

orgAnizAtionAl ClimAte

Most workers remain with organizations if they receive a motivating tool such as bonuses but remuneration is not only the thing that will motivate employees to remain with the organization. The biggest mind is about interesting and most of the main employees maintain culture. Recent research (Schyns, Van Veldhoven and Wood, 2009) determined that the reconnaissance of the organizational climate negatively influenced the successful job satisfaction that could accelerate the turn of employees, Stephnia and Boy Le (2003) to confirm the organizational climate effect on the intention of turnover in technology companies Information. They found a strong relationship between them.

pAy

Variables related to payment and payment have a simple effect on rotating, Griffeth et al. (2000). Their analysis also includes studies that examine the relationship between payments, performance and someone’s change. They concluded that when high players were not valued enough, they stopped. Injustice in low salary or wages is a big cause of dissatisfaction that can lead some employees to stop. Once again a replacement worker might wonder why the person next to him receives a high wage for what appears to be an equal job. If the work provides adequate financial incentives, the more likely permanent employees with the organization and vice versa. Factors affecting job satisfaction is payment, promotional opportunities, direct supervisors, suburban benefits, contingent gifts, rules and procedures, relationships with coworkers, some kind of work done, and communication in the organization (Ravisankar and Muneer, 2013).

METHODOLOGYThis study aims to form an investigation of factors that influence turnover rates in the banking sector, Trivandrum district. This quantitative research study adopts survey design. Primary data for this study was collected through standard psychometric instruments. The sampling method is used for this study. Secondary data needed



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for this study was collected from journals, magazines, other published documents, reports, online data sources, magazines and articles, research papers, websites, manuals and booklets etc.

RESULTS AND DISCUSSIONSubstitution of employees has become an important problem in the current banking organization. Management must incite further programs to find out why employees quit the organization and identify the problems of major employees and in what way organizations can attract and maintain it within the company. So far, this research focuses on the main influencers turnover tariffs in the banking system. So that looking for directions and relationships between organizational commitment, stress work life, organizational climate, organizational support, salary and turnover in the banking sector of the Trivandrum district of Kerala. So that looking for directions and relationships between work life stress, organizational climate, organizational support and turnover rates in the banking sector of the Trivandrum district, Pearson correlation analysis was carried out. The equation of multiple correlation is used to seek the influence of organizational commitment, stressful work life, organizational climate, organizational support, and pay at turnover rates.

hypothesis

H1

Organizational support, organizational climate, organizational commitment, pay and stress are having relationship with turnover intention behaviour of the new generation employees.

H2

Organizational support, organizational climate, organizational commitment, pay and stress are significantly influencing the turnover intention of the employees.

Table 1: Relationship between Organizational Support, Organizational Climate, Organizational Commitment, Pay, Work Life Stress and Turnover Intention

Turnover Intention

r-value P-value

Organizational Support 0.006 0.897

Organizational Climate 0.043 0.354

Organizational Commitment 0.404 0.001

Pay -0.362 0.001

Stress -0.094 0.001

H1

Organizational support, organizational climate, organizational commitment, pay and stress are having relationship with turnover intention behaviour of the new generation employees.



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To test the hypothesis mentioned above, Pearson correlation test is run. The value-p calculated was found 0.001 for commitment, payment, and organizational stress. For organizational support and organizational climate with calculated values each is 0.892 and 0.354. Therefore organizational commitment, salary and stress are relations with the behavior of the intention of the workers. Organizational commitment has a positive and more relations (r = 0.404) with the behavior of the intention of the change of workers. Stress (R = -0.094) and Pay (R = -0.362) has a negative relationship with the behavior of the intention of the workers. It was found that organizational commitment has a positive relationship and payment, stress has a negative relationship with the behavior of the intention of the change of workers. But organizational support and organizational climate has no relationship with the behavior of the intention of the workers. In the Ramlall study (2003) emphasized the need to recognize the individual needs of an employee in a company and it will encourage commitment and supply the appropriate work environment. The intervention of labor demands becomes a personal life (eg working over the weekend) resulting in high pressure and emotional fatigue among the workers (Hyman et al., 2003). Stone. (2006) report that there is a relationship between the organizational climate and the intention to go. Organizational support reflects the general confidence of employees that their organization recognizes their efforts and cares about employee welfare. Supply support from organizations to employees may make a feeling of good intentions to the organization, creating a strong attachment between employers and employees, which in a row improve the attitude of accountability to compensate for organizations through turnover rates. Thatcher et al. (2003) confirm the organizational climate results and therefore the intention of Turnover rates. Downey, Don, and Sloccum (1975) recommend six organizational climate components: decide, warmth, risk, openness, gifts and structures.

Table 2: Influence of Organizational Support, Organizational Climate, Organizational Commitment, Pay, Work Life Stress on Turnover Intention

R-value R2-value Adjusted R2 Value F-value P-value

0.494 0.244 0.236 29.891 0.001

PredictorsUnstandardized Coefficients Standardized Coefficients

t-value p-valueB Std. Error Beta

Constant 0.282 0.634 - 0.446 0.656

Support 0.004 0.006 0.029 0.711 0.477

Organization Climate 0.007 0.003 0.092 2.238 0.026

Organization Commitment 0.045 0.006 0.339 7.997 0.001

Pay -0.025 0.004 -0.282 -6.703 0.001

Stress -0.001 0.006 -0.011 -0.256 0.798

H2

Organisational support, organizational climate, organizational commitment, pay and stress are significantly influencing the turnover intention of the employees.



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Here the average average score of organizational support, organizational climate, organizational commitment, payment and stress are taken as independent variables and substitution intentions taken as dependent variables. Furthermore, some square regression is applied to check the hypothesis mentioned above. The results displayed in Table - 2. In the f-F value regression is 29,891 and therefore P-Value is 0.001 which is very important at the level of 1%. In a summary of regression summary models that adjusted R-Square values found 0.236 which revealed that organizational support, organizational climate, organizational commitment, payment and stress have a variance of 23.6% in the intention of the change of workers. Furthermore, the co-efficient regression value shows the strength of the relationship between the independent and dependent variables. it was expressed by the next equation.Turnover intention = 0.282 + 0.045 (organizational commitment) + 0.007 (organizational climate) - 0.025 (pay).From the Y regression in X it was observed that organizational commitment and organizational climate positively and significantly influenced the intention of the change of workers. Payments have been negatively and significantly influencing the intention of the change of workers. In the efficient beta regression value shows that an increase in 1 unit in the intention of change is thanks to an increase in organizational commitment at a rate of 0.045 while other factors remain constant. Likewise to have a unit of increasing the intention of turnover must be an increase in the organization’s climate at the level of 0.007 when other factors remain constant. But there was a decrease in 1 unit in Turnover’s intention thanks to a decrease in payment factors at the level of 0.025. It was found that organizational commitment and organizational climate have positively influenced the intention of the change of workers. Pay has a negative impact on the intention of the change of workers. Stress has no effect on the intention of the change of workers. A kind of compensation also has an impact on turnover rates. In addition to the increase in salary and cash bonuses, Dunford, ORER and Boudreau have shown that stock options do have an impact on executive turnover, and Sutton has shown that companies with higher levels of insurance and pension benefits generally experience lower level turnover levels.

CONCLUSIONEmployee turnover has become a critical problem in the current organization. Management must trigger a further program to find out why employees quit the organization and identify interesting problems and maintain them in the organization. Turnover rates have increased from time to time thanks to many things that support review of previous research findings five factors found related to the change of employees; Namely demographic social factors, organizational climate, work life stress, organizational support and payment. These factors are treated by organizations to ensure that they will retain their employees, especially those who can contribute significantly to the welfare of the organization. Bank management must implement customized employee programs to hold employees leaving the organization and identifying interesting concerns and maintaining them in the organization.



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[10] Pillai and Mathew R.V. (2019). Push Factors of Employee Turnover: A Review of Literature. International Journal Of Advance and Innovative Research,Vol.6,pp.37-39.

[11] Labov B. (1997).”Inspiring employees the easy way”, Incentive ,171(10):114-118.

[12] Magner, N., Welker, R. and Johnson (1996). The interactive effects of participation and outcome favorability in performance appraisal on turnover intentions and evaluations of supervisors .J. Occupational org.psychol.69:135-143.

[13] Mathew R.V., Panchanatham, N. (2010). Development of a psychometric instrument to measure work life balance. Continental Journal of Social Sciences, 3, 50-58. 12

[14] Mathew R.V., Panchanatham, N. (2011). An exploratory study on work life balance of women entrepreneurs. Asia Academy of Management Journal, 6(2),77-105.

[15] Normariati Silaban and Tantri Yanuar Rahmat Syah (2018). The Influence of Compensation and Organizational Commitment on Employees’ Turnover Intention. Journal of Business and Management, 20(3), 01-06

[16] Ramlall S. (2003). Managing employee retention as a strategy for increasing organizational competitiveness. Applied H.R.M Research, 8(2), 63-72

[17] Stone P.W., Larson E.L., Mooney Kane C., Smolwitz J., Lin S.X., Dick A.W. (2006). Organizational climate and intensive care unit nurses’ intention to leave. Critical Care Medicine, 34(7), 1907-1912.

[18] Sutton, N. (1985). Do employee benefits reduce labor turnover? Benefits Quarterly, 1, 16-22.

[19] Thatcher J.B., Stephinia L.P., Boyle R.J. (2003).Turnover of information technology workers: Examining empirically the influence of attitudes, job characteristics and external markets. Journal of Management Information Systems, 19(3), 231-261.

[20] Trevor C (2001).”Interactions among actual ease –of –movement determinants and job satisfaction in prediction of voluntary turnover”. Acad. Manage J.44(6):621-638.

[21] Williams L.J., Hazer J.T.(1986).”Antecedents and consequences of satisfaction and commitment in turnover models: a reanalysis using latent variable structural equation methods,”J.Appl.psychol.71(2):219-231.


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23

Building Organizational Efficiency and Capacity through Effective Interpersonal Communication

Monali ChatterjeeInstitute of Management, Nirma University, Ahmedabad

INTRODUCTIONManagers of all levels and capacities are often faced with the dynamics of human communication that is based on personal familiarities as well as the involvement of the others who participate in the process. For the managers of today, communication is an inevitable process and skill that helps them make sense of things in professional contexts. Interpersonal communication at work occurs among supervisors, subordinates, co-workers and customers. Beyond policies about appropriate relationships in the workplace, employees face difficulties in communicating with clients as well as co-workers. On beginning with a new position, it is important to get acquainted and acclimatized to the organizational culture and diverse workforce.

RESEARCH OBJECTIVEThis paper reviews through the available literature, the essentials of connecting with other people professionally on an interpersonal level, particularly for managers. It explores how interpersonal communication can help managers to achieve professional excellence. This paper aims to analyse the complexities of interpersonal communication. It proposes to suggest ways of responding to difficult situations and unfriendly and hostile colleagues, that may be adopted by professionals. An attempt has been made through this conceptual and prescriptive paper to discern the impact of interpersonal communication upon capacity-building.

METHODOLOGY• Systematic Literature Review and Thematic Bibliometric research

• Conceptual, exploratory and prescriptive

INTERPERSONAL COMMUNICATIONInterpersonal communication, also known as people skills or soft skills, is an area that is needed to develop and foster throughout one’s career if one wishes to achieve professional excellence as well as for the overall capacity building for the workplace. Interpersonal skills or interpersonal communication is the way people interact. It is



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a powerful skill that helps to grow in the workplace. It is a dyadic process. It can make one establish connections with the others and connect to prepare a network of professional relations. Though the concept of interpersonal communication came into existence only in the 1950s (Berko, Wolvin, & Wolvin, 2004, p. 135) it has been a part of human communication ever since its inception. Exhaustive research in the area caused the field of speech to expand from a study focused on public speaking into broader field of communication encompassing self-disclosure, approval seeking, conversational communication and conflict resolution and crisis communication. (Idem.) Interpersonal communication refers to “communication that is based on communicators’ recognition of each other’s uniqueness and the development of messages that reflect that recognition.” (Hulbert as quoted in Berko) It is an interactive process in which the sender and the receiver communicated messages. (Berko, Wolvin, & Wolvin, 2004, p. 140) Julia Wood suggests that interpersonal communication exists on a continuum from extremely personal to extremely impersonal. (Stuart, Sarrow, & Stuart, 2007, p. 12)

Interpersonal communication is governed by two factors: Firstly, communication requires sending and receiving. Secondly, communication is founded upon relationships and information. The messages for interpersonal transactions involve the sending and receiving of messages in such a way that they are successfully encoded and decoded. The more experiences the communicators have in common and the more openness they have between them. Hence it is highly probable that their communication will be successful. Interpersonal communication helps to fight loneliness, define self-esteem, review experiences, renew personal and intrapersonal growth, and aid us in understanding who we are and how we relate to others. Interpersonal skills have been identified by business executives as one of the three most important abilities that employees must have (good listening and effective problem solving are the others). 2 At the personal level, family and relational communication are dependent on the competence interpersonal communicator.

BASIC CONCEPTS OF INTERPERSONAL COMMUNICATION As we enter into communicative relationships with others, we set a pattern by which we will interact. A change in the system results in a change of communication. If someone in the system changes roles (a personal gets promoted or receives an interdepartmental transfer) or external factors change the system, that changes the communication pattern.

LITERATURE REVIEW Interpersonal communication refers to the co-creation of meaning as people interact. (Quintanilla & Wahl, 2017, p. 120) This powerful skill can enable one to grow in the workplace. Interpersonal communication occurs in dyads. It involves a minimum of two individuals. Dyads help to make connections which help one to build a network of professional relationships. One should consistently endeavour to build and maintain a healthy professional relationship with co-workers, leaders and clients. According to Wiemann (1977) communicative competence as the “ability of



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an interactant to choose among available communicative behaviours in order that he may successfully accomplish his own interpersonal goals during an encounter while maintaining the face and line of his fellow interactants within the constraints of the situation”. (Wiemann, 1977) Similarly, Rogers observes “that interpersonal linkages among individuals in a social system can influence the communication flow and promote the adoption and diffusion of innovations in the system.” (Rogers, 2001) Despite having positive experiences in the past, in order to achieve professional success and achieve professional success and excellence, one needs to refine and hone interpersonal skills and be effective in one’s connection with other people in every professional ambience. Interpersonal communication serves some significant purposes:

1. The ability to relate with others leads to achieving professional excellence. 2. Interpersonal relationships at work offer a supportive social system that can

enhance one’s job satisfactionThis can be demonstrated by an exemplary achievement:Henry Ford embodied the proverbial “rags to riches” story; he dropped out of school at the age of 16, yet managed to build the biggest, industrial organization of the early twentieth century and to accumulate a personal fortune of $36 billion. (Argenti & Forman, 2003, pp. 66-67) However, Ford wasn’t just building cars to make a profit. He boldly placed people before profits, vowing: “I don’t believe we should make such an awful profit on our cars. l hold that it is better to sell a large number of cars at a reasonably small profit...I hold this because it enables a larger number of people to buy and enjoy the use of a car and because it gives a larger number of men employment at good wages.” (Idem.) These priorities, combined with Henry Ford’s vision of cars for every man, enchanted millions of Americans. In turn, after he shared this vision-and joined with close friend Harvey Firestone to convey it-the nation saw the car transformed into the unofficial American symbol of freedom, status, and mobility. (Idem.)Interpersonal relationships help to establish relationships and hence communication and relations are mutually dependent on each other. A relationship is a form of dynamic interaction that is founded upon an organized form of communication between or amongst two or more individuals. (78) There are various kinds of relationships in the workplace. In the idiom of the workplace, the superior is the supervisor or employer. He/she usually enjoys a higher status than the subordinate who is the employee and has a position lower than him or her. The entities or people that are catered to by one’s workplace are the external customers. An internal customer refers to an employee who uses products or services from other sections of the workplace to undertake a duty or responsibility. In order to sustain positive customer relations, communication has to be effective. This is imperative in the corporate world of today. Customer relations and customer services thrive on the positive interaction between the employees and the representatives of the business and the people the organization caters to through their products or services.

The difference in the status of the superior and the subordinates may sometimes cause clashes of interest and may disturb or adversely affect the situational



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communication between them. Semantic Information distance describes a situation wherein employees and supervisors do not share the same view of the operational areas such as issues relating to the organization as well as duties and responsibilities. Similarly, upward distortion happens when the messages going upward in the chain of command, from subordinates to supervisors, are altered. (Quintanilla & Wahl, 2017, p. 121)

According to Fulk and Mani, messages are altered in four different ways: Gatekeeping, summarizing, withholding or general distortion. Gatekeeping occurs when only partial information is passed on to the supervisor. Summarizing is done, by emphasizing only on certain aspects of the message while communicating. Withholding means that the information is not passed to the supervisor. General distortion refers to changing the meaning of the message to suit the interest of the supervisor. (Idem.)

In surveys of highly successful managers across the world, effective communication was identified as the most crucial skill a successful manager possesses. However, studies often reveal that employees feel that their employers or managers are weak communicators and the employers share the same opinion about their employees. The instructions of some managers sound hostile and tyrannical. (Conrad, 2014, p. 106) While these messages may be understandable, precise and clear, they are not well received, not embraced, by employees. Asking and telling an employee to do something will produce the same result, but asking will not produce the resentment that telling does. Employees like to be treated with respect and dignity, and, if a manager sets the tone and content of communications to do this, it will help develop a more productive and supportive workforce. Thus, respect begets respect and co-operative communication helps to break silos, thereby enhancing the scope of capacity building in the workplace. Faulty habits of communication lead to most of our work problems. The means and modes of communication have evolved from the basic face-to-face discussion to highly advanced innovative technology. Emails, social media, text messages, and video teleconferencing are common ways of communicating in the resent time. Yet, they lack the personal touch and are subsequently misinterpreted. (Conrad, 2014, p. 106) While the grapevine—an informal system of communication spreads information quickly its abuse may also become the hub of gossip, rumours and malicious, hostile communication or distortion of messages.

A successful method of increasing organizational efficiency is through capacity building. Capacity building refers to the method by which individuals and organizations obtain, improve, and retain the skills, knowledge, tools, equipment and other resources needed to do their jobs competently or to a greater capacity (larger scale, larger audience, larger impact, etc). Capacity building and capacity development are often used interchangeably. According to Shams,

Capacity building is a continuous process to develop innovative capacities in socio-economic settings through on-going development and adaptation of strategies and processes that enable higher advantage in collective and individual levels, compared to the prior strategies and processes to enhance socio-economic development. (Shams, 2016)



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A BIBLIOMETRIC ANALYSIS OF AVAILABLE LITERATURE:In order to seek a profound insight for how interpersonal communication of managers can impact the efficiency, growth and development of organizations an elaborate literature review of journals listed in Scopus has been conducted for this research. The indexing ensures that the papers have internationally recognized quality and can contribute great value to the performance of an organization today. The papers reviewed are research articles that are themed broadly on “interpersonal communication” and “Organizational development”. Over a hundred papers had been sifted before shortlisting a dozen of well-researched research articles based on this theme.

Table 1

Content of the Research Sources

The influence of innovative behaviour, interpersonal communication, managerial competence, and organizational development on the performance of an organization. The higher the innovative behaviour and the better the interpersonal Communication as well as Managerial competence the more the development of the organization.

(Marlina Siregar, 2020)

Another study revealed that the right form of coaching including guidance and facilitation coaching can improveadaptive performance, creativity, and emotional exhaustion.

(Hui, Law, & Lau, 2020)

Implicit and ambiguous policies, which are often poorly communicated, are inversely associated with the positive work conditions and organizational growth.

(Babapour Chafi & Rolfö, 2019)

Employees who are bound by fewer organizational constraints and high contribution tend to share and seek information and opinions over social media. On the other hand, employees having more recognition of adversity are likely only to process information. This pioneering research attempts to integrate the relational perspective along with the situational perspective. It even provided relevant ideas for large establishments on how to create and preserve long-term associations with employees and positively influence their communication behaviours on social media.

(Wang, 2020)

Appropriate and effective interpersonal communication as a part of transformational leadership improves the empowerment of teams, sharing of knowledge, motivation and team-efficacy in the organization.

(Ul Hassan, 2019)

With an increase in the exchange of information and communication among employees, with varying background in culture and ethnicity, there is a high probability of positive interpersonal interactions, building of teams and decision making, better transfer of knowledge and corporate governance.

(Ravlin, 2014)

To enable interpersonal communication and conflict resolution as well negotiation within an as in intercultural, team members need to use their emotions in a constructive manner.

(Ulijn, 2005)

Taking conflict personally can adversely affect communication competence and organizational ambience. A research that responds to psychometric and conceptual difficulties of investigating this relationship offers some subscales and dimensions to the interpretation of conflict.

(Hample, 1995)

A seminal paper relates difficulties of language to perspectival dimension across multiple disciplines. This research also focuses on communicative exchanges within organizations.

(Goodall, 1984)

Another study proposed that competence in foreign language, non-verbal communication as well as the perception of cultural proximity and self-awareness, skills, knowledge, effectiveness, motivation, appropriateness, contextual interaction patterns, and affinity have practical implications –can positively impact organizational growth

(Kupka, 2016)

Table 1 (contd.)...



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Being positive, sound interpersonal communication, socio-emotional skills and values as well as overcoming difficulties and resolving conflicts can make one capable of influencing well-being in the workplace

(Biggio, 2013)

Leadership communication at the supervisory and senior levels can improve symmetrical internal communication system. The analysis also shows that symmetrical internal communication and leadership communication cause employees to seek more feedback from different interpersonal sources including supervisors, coworkers, and peers in other departments, which in turn enhances creativity.

(Lee, 2021)

From the view point of organizational behaviour interpersonal communication skills can improve openness, agreeableness, and neuroticism, as perceived by experienced human resource professionals.

(Suen, 2020)

This research develops guidelines involving sound interpersonal communication to help meeting organizers select effective meeting modes based on meeting objectives

(Standaert et al., 2021)

This research attempts to extend the literature on corporate governance and firm strategic performance from the perspective of emerging African economies. It shows how interpersonal communication can deeply impact the growth of an organization and support the smooth functioning of corporate governance.

(Osazevbaru and Tarurhor, 2020)

The study depicts how participants in faculty development work with change in their practical activities. The change also includes aspects of their interpersonal communication

(Elmberger et al., 2020)

This study suggests a framework for a better comprehension of the mental models of the users of computer mediated communication which can cause a timely design, gauging of intelligent systems and the redefining of the roles for human interpersonal communication amidst emerging technical innovations.

(Lee and Malcein, 2020)

This research demonstrates that engineering students in Philippines can achieve high commendable internship performance evaluation rating in relation to attitude, personality, knowledge and skills, including interpersonal communication which can offer an advantage to the productivity of an organization they perform their internship in.

(Laguador et al., 2020)

This study seeks to find a correlation between stakeholders and organizational growth. One of the crucial elements that determine the degree of the stakeholders’ trust in an organization is interpersonal skills.

(Habersaat et al., 2020)

The study focuses on language-coping mechanisms and psychological safety in adding language as a potential barrier to innovativeness. It also projects how non-English speakers in MNCs can hone their interpersonal communication and thereby contribute effectively to an organization

(Nurmi and Koroma, 2020)

MANAGERIAL IMPLICATIONSSome of the broad themes that the literature centres on are organizational growth, productivity, organizational well-being and good will. There are several strategies to increase efficiency in organisations by improving interpersonal communication. Much of the methods of increasing efficiency may be aligned for the purpose of this research.

By evaluating the barriers to communicate effectively, one can “make changes that create a calmer, more welcoming workplace - cultural, physical, emotional, and personality barriers might be some factors impacting office communication”. (Conrad, 2014, p. 106) Business leaders and managers strive to offer an open system of communication to facilitate positive interpersonal communication. It is necessary

...Table 1 (contd.)



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to conduct oneself with professional excellence in interpersonal communication at the workplace. One should know how one intends to achieve professional excellence as a manager. It is necessary to be acquainted with one’s weaker areas of interpersonal communication with both colleagues and clients. This will not only improve a manager’s interpersonal communication but also inspire the subordinates to replicate similar behavioural improvement and people skills thereby leading to the overall capacity building of the organization.

From the perspective of external business, many companies are realizing that their interpretations of what new products and technologies mean for the future need to match their customers more closely. Research and development departments of renowned organizations encourage its scientists and mathematicians to go out into the field and talk to customers about problem solutions, innovations and technologies that could benefit them. The connection between the scientists and customers creates a basis for shared meaning and interpretations that didn’t exist before. Each organization and each business situation has a different context that determines what words behaviours and even future innovations mean. (Angell, 2007, p. 124) Thus a business maintains interpersonal communication with its stakeholders as a homogenous body.

Within an organization capacity building may be affected by the strengthening of the manager-employee relationship. When both managers and employees recognize the importance of communication and jointly assume the responsibility for sharing meaning, then communication breakdowns are less likely to occur and the need of both relationship members are likely to be met. (Verderber & Verderber, 2004, p. 377)

The use of self-managed teams is increasing in organizations today. This increases capacity building because the onus of responsibility is shared by every individual in the group. It is necessary to structure and guide a group discussion in a team. A manager should be alert to digression, clarify the roles of each member elaborate upon the expected contribution of each member. (Hargie, 2017, p. 155) Conflicts are often perceived as destructive and should be avoided at all costs. However, expressing different points of views and opinions can be an advantage to the group. During a conflict, the focus should be on issues and not on personalities. The manager or leader of the group should make all the contributors feel that their suggestions have at least some merit. If the discussion reaches loggerheads, it is advisable to highlight the points of agreement and the discussion can be shifted to a broader topic or arrive at a mutual consensus. There is no “I” in a team and the emphasis should be on “we” and “us”. These skills of interpersonal communication can go a long way to strengthen a team in an organization and support its capacity building.

Leadership is synonymous with the act of influencing others in a range of group contexts. However, it is important to bear in mind the distinction between leadership and leader. While specific individuals may occupy the position of a leader, acts of leadership can be demonstrated by any member of the group. Theories of leadership offer a contrasting explanation about the emergence, performance and functioning of a leader. The degree of autonomy of the leader as well as the members often determines the success of an efficient group at the workplace. (Hargie, 2017, p. 156)



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To increase capacity building in organisations through interpersonal communication it is necessary to evaluate the professional context. This can enable the manager to become more sensitive to the needs of his/her audience and become familiar with how he/she is perceived by his/her clients and colleagues. One should put in efforts while making decisions regarding people skills and interpersonal communication. This can make a manager more confident and genuine during interpersonal encounters with clients and co-workers. (Quintanilla & Wahl, 2017, p. 134) Self-reflection about one’s interpersonal communication can help a manager to deal with difficult situations or people. This can further bring about social and behavioural improvements and lead to the infrastructure development of the organization. This can further improve the work ambience of the organization, thereby increasing its capacity development.

Another significant method to enhance capacity building at the work place is to bear in mind that “Competent communicators are concerned with the interest of others as well as themselves. Openness implies the willingness to share responsibility in the transaction.” (Vaught, 1992)

The research can be carried forward and the model can be validated in a variety of ways:

• Qualitative Study

• Context Analysis

• Structured Interviews

Based on the observations gathered from the available literature, a number of case studies can be drawn and analysed.

CONCLUSIONThe deliberations elaborated above centre on the how the efficiency and capacity-building potentials can be enhanced through a planned and constructively channelized interpersonal communication within the organization. The onus of its success lies with every employee if the organization follows an open system of communication. This is also dependent on the existence and power of the hierarchical structure of the organization. However, apart from these detrimental factors, the implementation of effective interpersonal communication is impacted by many other variables that cannot always be controlled but bearing some of the above-mentioned strategies may go a long way to improve efficiency in organizations.

REFERENCES[1] Angell, P. (2007). Business Communication Design: Creativity, Strategies and Solutions. New

York: McGraw-Hill International Edition.

[2] Argenti, P. & Forman, J. (2003). The Power of Corporate Communication: Crafting the Voice and Image of Your Business. New Delhi: Tata McGraw-Hill Publishing Company Limited.

[3] Babapour Chafi, M. & Rolfö, L. (2019). Policies in activity-based flexible offices -‘I am sloppy with clean-desking. We don’t really know the rules.’. Ergonomics, 62(1), 1-20. doi:10.1080/00140139.2018.1516805.



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[4] Berko, R.M., Wolvin, A.D., & Wolvin, D.R. (2004). Communicating: A Social and Career Focus Library (Ninth ed.). Boston: Houghton Mifflin Company.

[5] Biggio, G. &. (2013). Well-being in the workplace through interaction between individual characteristics and organizational context. International Journal of Qualitative Studies on Health and Well-being, 8(1). doi:10.3402/qhw.v8i0.19823.

[6] Conrad, D. (2014). Workplace Communication Problems: Inquiries by Employees and Applicable Solutions. Journal of Business Studies Quarterly, ISSN 2152, 5(4).

[7] Elmberger, Agnes, et al. “Collaborative Knotworking – Transforming Clinical Teaching Practice through Faculty Development.” BMC Medical Education, vol. 20, no. 1, BMC Medical Education, 2020, pp. 1–11, doi:10.1186/s12909-020-02407-8.

[8] Goodall, H. (1984). The Status of Communication Studies In Organizational Contexts. Communication Quarterly, 32 (2), 133-147. doi:10.1080/01463378409369544.

[9] Habersaat, Katrine Bach, et al. “Ten Considerations for Effectively Managing the COVID-19 Transition.” Nature Human Behaviour, vol. 4, no. 7, Springer US, 2020, pp. 677–87, doi:10.1038/s41562-020-0906-x.

[10] Hample, D.D. (1995). A Lewinian Perspective on Taking Conflict Personally: Revision, Refinement, and Validation of the. Communication Quarterly. doi:10.1080/01463379509369978

[11] Hargie, O. (2017). Skilled Interpersonal Communication: Research, Theory and Practice. New York: Routledge.

[12] Hui, R.T., Law, K.K., & Lau, S.C. (2020). Online or offline? Coaching Media as Mediator of the Relationship between Coaching Style and Employee Work-related Outcomes. Australian Journal of Management, Article in Press. doi:10.1177/0312896220914383.

[13] Kupka, B.W. (2016). Experientially educating future consultants: Benefits, challenges, and constructs. Journal of Applied Research in Higher Education, 8(2), 177-195. doi:10.1108/JARHE-02-2015-0015.

[14] Laguador, Jake M., et al. “Employability Skill Development Needs of Engineering Students and Employers’ Feedback on Their Internship Performance.” Universal Journal of Educational Research, vol. 8, no. 7, 2020, pp. 3097–108, doi:10.13189/ujer.2020.080738.

[15] Lee, Y. &. (2021). Cultivating employee creativity through strategic internal communication: The role of leadership, symmetry, and feedback seeking behaviors. Public Relations Review, 47(1). doi:10.1016/j.pubrev.2020.101998

[16] Lee, Y.C. and L. Malcein. “Users’ Mental Models for Computer-Mediated Communication: Theorizing Emerging Technology and Behavior in EHealth Applications.” Human Behavior and Emerging Technologies, vol. 2, no. 4, pp. 354–66.

[17] Marlina Siregar, e. a. (2020). Effect of Innovative Behavior, Interpersonal Communication, Principal Managerial Competence on School Organization Development. 348-359. doi:10.5281/ZENODO.3982495.

[18] Nurmi, Niina, and Johanna Koroma. “The Emotional Benefits and Performance Costs of Building a Psychologically Safe Language Climate in MNCs.” Journal of World Business, vol. 55, no. 4, Elsevier, 2020, p. 101093, doi:10.1016/j.jwb.2020.101093.

[19] Osazevbaru, Henry Osahon, and Emmanuel Mitaire Tarurhor. “Unobservable Characteristics of Board Directors and the Performance of Financial Services Firms in Nigeria.” Investment Management and Financial Innovations, vol. 17, no. 4, 2020, pp. 378–88, doi:10.21511/imfi.17(4).2020.32.

[20] Quintanilla, K.M., & Wahl, S.T. (2017). Business and Professional Communication: Keys for Workplace Excellence. Los Angeles: SAGE.



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[21] Ravlin, E. W.K. (2014). Exchanging Social Information Across Cultural Boundaries. Journal of Management, 40(5), 1437-1465. doi:10.1177/0149206314531623

[22] Rogers, J.D. (2001). Obstacles and opportunities in the application of network analysis to the evaluation of R&D. Research Evaluation, 10(3), 161-172.

[23] Shams, S. (2016). Capacity building for sustained competitive advantage: a conceptual framework. Marketing Intelligence & Planning, 34(5), 671 (pp. 671-691). doi:https://doi.org/10.1108/MIP-08-2015-0161

[24] Standaert, Willem, et al. “How Shall We Meet? Understanding the Importance of Meeting Mode Capabilities for Different Meeting Objectives.” Information and Management, vol. 58, no. 1, Elsevier B.V., 2021, p. 103393, doi:10.1016/j.im.2020.103393.

[25] Stuart, B.E., Sarrow, M.S. & Stuart, L. (2007). Integrated Business Communication in a Global Marketplace. New Delhi: Wiley-India.

[26] Suen, H. (2020). Intelligent video interview agent used to predict communication skill and perceived personality traits. Human-Centric Computing and Information Sciences, 10(1). doi:10.1186/s13673-020-0208-3

[27] Ul Hassan, M.I. (2019). Transformational leadership and Team Performance: An Empirical Study of the Hotel Industry of Pakistan. International Journal of Business Excellence, 18(2), 151-173. doi:10.1504/IJBEX.2019.0995

[28] Ulijn, J.F. (2005). Patterns of feelings in face-to-face negotiation: A Sino-Dutch Pilot Study. Cross Cultural Management: An International Journal, 12(3), 103-118. doi:10.1108/13527600510798097

[29] Vaught, B.A. (1992). Cultural Diversity and Interpersonal Communication Skills: A Study of Indian Managers. Leadership & Organization Development Journal, 13(7), 26-31. doi:https://doi.org/10.1108

[30] Verderber, K.S. & Verderber, R.F. (2004). Inter-Act: Interpersonal Communication Concepts, Skills, and Concepts. New York: Oxford University Press.

[31] Wang, Y. (2020). When Relationships Meet Situations: Exploring The Antecedents of Employee Communication Behaviours On Social Media. Social Science Computer Review. doi:10.1177/0894439320904719

[32] Wiemann, J. (1977, Spring). Exhibition and Test of a Model of Communicative Competence. Human Communication Research, 3(1), 198 (195-213).


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24

Contemporary Issues in People Management Analysis using the Toyota Way

Pramiti RawatInstitute of Management, Nirma University, Ahmedabad

ABSTRACT

Human Resource Management is one of the most crucial factors in the success of an organization in today’s contemporary world. This paper endeavors to study the role of HRM in an organization like Toyota, which has a profoundly different people management model as compared to other traditional companies. Toyota has implemented a collection of coaching values, managerial values, and business methods together known as the Toyota Way - style of people management. These values and methods have been analyzed and then proposed as generic solutions that could be optimized by each Organization.

The Toyota Way effectively integrates people, processes, and technology. It ensures that one should focus on the global optima and not focus on local optima. The Toyota Way or system is a continual, coordinated, and comprehensive effort to bring about a change in the leadership and management skills across an organization.

Keywords:People Management, Leadership, Toyota Way, Contemporary

INTRODUCTIONAccording to Dave Ulrich (1998), human resource management (HRM) has never been more necessary as it is in the 21st Century. In most companies HRM has been playing the role of the policy police or the regulatory watchdog. However, in the contemporary business world the role of HR has changed radically. The 21st century is a reflection of the changes that the business environment has experienced in the context of work and employment: which can be summarized in the phrase ‘accelerated disruption’.

Organizations in today’s world face various internal and external (competitive) challenges. Some challenges include poor communication, intellectual capital, standardization of processes and products, and customer satisfaction. Therefore, to thrive in today’s business environment, organizations need to increase their ability to learn, collaborate, and manage diversity, complexity, and ambiguity (Ulrich, 1998). Organizations also need to focus on their profitability, that is, the revenue growth. They need to be more creative and innovative in order to attract new customers as well as to develop new products that provide value to their customers. A competitive advantaged that businesses need to consider in the 20th century is intellectual capital



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or knowledge. The greatest challenge that organizations need to face is change. They need to have the capacity to adapt and embrace as well as learn from the changes taking place in the dynamic business environment. These phenomena have significantly influenced the forms of work and employment and have led to their transformation and disruption. This disruption which in and of itself is progress, has created a fundamental adjustment in work and employment. It has facilitated new and emerging issues in the workplace (Holland, 2019). These issues have steadfastly increased in complexity and this paper endeavors to provide an insight into these new and emerging issues and challenges in human resource management. It aims to study the role of HRM in an organization like Toyota, which has a profoundly different people management model as compared to other traditional companies.

Toyota is a multinational automotive manufacturing company founded in 1937. It operates 50 manufacturing facilities outside Japan and sells vehicles in more than 170 countries and employs close to 300,000 people. The Toyota culture has been a core competence of the company since its inception. The way people think and behave is deeply rooted in this culture. Additionally, the top executives of the company believe that “everybody should know everybody else’s business”. Toyota believes that the only way to grow and achieve all the organizational goals is through harmony and by fundamentally respecting people: stakeholders, customers, and labour. It fosters a corporate culture that enhances not only individual creativity, but also the value of teamwork while honoring mutual trust and respect between labour and management. This is implemented through a collection of coaching values, managerial values, and business methods together known as the Toyota Way - style of people management. The underlying assumption here is that when people are carefully selected and developed over long periods of time, they will continuously improve the work processes and ultimately lead to competitive advantage as well as mutual prosperity.

THE TOYOTA WAY OF MANAGING PEOPLE Even though Toyota is a lean manufacturing company, they believe in applying the continuous improvement concept not only for manufacturing products but also for the people working there. They foster an environment that encourages initiatives and creativity. Unlike other mass production companies, Toyota believes that an organization can survive long term and gain outstanding financial results from a continuous and robust improvement process instead of pushing people to achieve financial targets while disregarding the effect of their actions on the processes.

The Toyota Way outlines three interconnected elements: courage, kaizen, and humility that allows them to respect people and develop a culture of continuous improvement. These three forces of integration, help stabilize the company, help employees make sense of the environment in which they operate, and perpetuate Toyota’s values and culture (Takeuchi, Osono, & Shimizu, 2008). An example of this is Genchi Genbutsu often translated to ‘Go and See’. The most important reason to do so is for the employees to learn. The employees cannot formulate a suitable solution to the problem if they have never stepped foot on the factory floor or if



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they have never observed the problem. Hence, Toyota encourages their employees to learn deeply about the situation and what is needed from them before jumping to a solution. Another reason for following Genchi Genbutsu is to teach the employees to ask questions which will lead them and their team to find the correct answers.

intelleCtuAl CApitAl

In Toyota, the people and not the machines or processes, are the key to their success. According to them, humans are the most capable when it comes to learning, creating, and solving problems. Therefore, the actions and reactions of the people in the firm and their ability to effectively understand situations and develop smart solutions enables Toyota to continuously improve and adapt. In order to thrive, an organization must continually improve and evolve as well as systematize all procedures and routines i.e. methods that channel the human capabilities. Toyota makes use of such routines to guide and support everyone in the organization by giving them a specific pattern on how they can go about sensing, adapting, and improving. The improvement capability of all the people in the organization is considered to be the strength of the firm. Since Toyota was in its nascent stage, it emphasized on teamwork being its guiding principle. When a problem arises, each member of the team is accountable and has the authority and responsibility to find a solution. This is practice has started from the factory floor and has now spread through the organization. Thus, according to Kathi Hanley (group leader at Toyota Motor Manufacturing, Kentucky), it is better for an organization’s adaptiveness, competitiveness, and survival to have a large group of people working systematically and methodically, and making small steps of improvement every day rather than a small group doing periodic projects and events. Toyota deliberately fosters contradictory viewpoints within the organization and challenges employees

Fig. 1: Main Elements of Toyota CultureSource: Toyota by Toyota: Reflections from the Inside Leaders on the Techniques That Revolutionized the Industry, 2012



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to find solutions by transcending differences rather than resorting to compromises. This culture leads to the ability to resolve problems incrementally, radically, and permanently and then improve stable processes. This has also been considered to be one of Toyota’s competitive advantages. When the entire workforce is charged with solving their workplace problems, the power of the intellectual capital rises tremendously. Mike Rother in his 2009 book “Toyota Kata: Managing people for Improvement, Adaptiveness, and Superior Results” cited the following lines from page 16 of the Toyota 2004 Annual Report.“Toyota has a unique corporate culture that places emphasis on problem solving and preventative measures, such as making decisions based on the actual situation on the ground and highlighting problems by immediately flagging and sharing them. Toyota’s management team and employees conduct operations and make decisions founded on that common system of checks and balances and on high ethical standards.A distinctive feature of Toyota’s system is that senior managing directors do not focus exclusively on management. As the highest authorities in their areas of supervision, they also act as links between management and on-site operations. Retaining an emphasis on developments on the ground—one of Toyota’s perennial strengths—helps closely coordinate decision making with actual operations. Management decisions can be swiftly reflected in operations, while overall management strategy is able to readily incororate feedback from frontline operations.”Typically, companies either promote their employees or ask them to leave; they follow the up or out system. However, Toyota rarely weeds out the underperformers. They instead focus on upgrading the underperforming employee’s capabilities. For example during the 1997 Asian financial crisis, Toyota’s Thailand operation weathered losses for four straight years without making any job cuts. The then Chairman Hiroshi Okuda, had sent the message to, “Cut all costs, but don’t touch any people”. Toyota’s main commitment lies not for their machines, processes, or ratings, but for their people. Furthermore, Toyota tries to always maintain humility in the employees by remind them that their success is due in part to the efforts of equally accomplished colleagues. For example, when an employee is promoted, the message delivered to them is along these lines: “Congratulations on your promotion. Many others were within a hair’s breadth of being selected. Keep that in mind as you do your job.” (Rother, 2009).

empowerment

In traditional mass production organizations, the shop floor workers have the least amount of power over processes and specialists and consultants analyze the problems and inefficiencies and suggest a solution. However, Toyota focuses on handing the maximum power and tasks to those who actually ‘do the job’. The workers have full control over the production process and even suggest improvements to the system. This allowed each employee to see the effects of their contribution in the whole production system. The Toyota Production System (TPS) believes that by empowering their workers, they will be able to add value not only in production but in the organization as a whole. The skilled employees are highly valued by the



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management and there is trust between the employees and the management. The Toyota people management system builds trust between its members through daily interactions. The team leaders actively work with their subordinates as a part of a group. The team does its own clean up and repairs and improves itself through the process of Continuous Improvement (Kaizen).

soft innovAtion

According to Takeuchi et al. (2008), the Toyota Production System (TPS) is a ‘hard’ innovation which allows the company to keep improving the way they manufacture vehicles. Additionally, Toyota has also mastered the art of a ‘soft’ innovation which is related to its corporate culture. The employees have to work in a company culture where they constantly deal with challenges and problematic situations and must come up with fresh ideas to tackle them. This enables Toyota to constantly get better; with the hard and soft innovations working in tandem. Theses two innovations together move the company forward. The company is famous for its lean manufacturing process. However, mechanical efficiency is not enough, the process will be able to function smoothly only if the people operating it are innovative and have a scientific manner of thinking. Toyota does not view its employees as a pair of hands, instead they are viewed as knowledge workers who accumulate “chie”—the wisdom of experience—on the company’s front lines. The ideas for improvement can be garnered from people working in every department- from the factory floor to the offices to the field. Thus, Toyota invests heavily in people and their organizational capabilities.

CommuniCAtion

In Toyota, it is an unwritten rule that employees must keep their language simple while communicating not only with each other, but also with their subordinates and superiors. The company has also developed horizontal links between employees across functional and geographic boundaries, grouping them by specializations and year of entry; creates vertical relationships across hierarchies through teaching relationships and mentoring; and fosters informal ties by inviting employees to join clubs based on birthplaces, sports interests, hobbies, and so on (Takeuchi, Osono, & Shimizu, 2008). Additionally, the top executives of the company believe that “everybody should know everybody else’s business”. The information flows freely up and down the hierarchy and across functional and seniority levels, extending outside the organization to suppliers, customers, and dealers. In Toyota, personal relationships are the most important; its communication networks are human rather than virtual. These are fostered in and open environment, where all the employees cultivate the skill of listening to everybody’s opinions. For example, the information is received and delivered by the executives by going to the front line themselves. The senior sales officers also share the information with the dealers and learn about customer tastes by personally vising them. The former Executive Vice President Yoshimi Inaba called this network the ‘nerve system’. Similar to the human nervous system, the communication system in Toyota is a web of networks which transmits information swiftly across the entire organization. This system helps Toyota to avoid the poor communication pitfalls typical of big organizations.



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mentoring

The objective of the people working in Toyota is to hone their skills and work towards the set goal of mastering the work they do. For the same, coaching and mentoring is also practiced throughout the organization. Each employee is assigned a more senior employee, a mentor, who actively guides them through the process of making actual improvements or dealing with any work-related situations. The mentors in turn have their own mentors who are doing the same for them. The mentor mentee relationship is not necessarily linked to the organizational hierarchy. An employee may get mentored not only by his immediate superior but also by someone who is assigned to them based on their current activities and development needs (Wilburn & Obara, 2012).

stAnDArDizAtion

The rigorous standardization in the lean processes of Toyota is driven by the people who work to achieve the common organizational objectives. To do this work requires people with “towering technical competence” who learn the specific technology they are engineering in tremendous depth and also learn through intense mentoring in the “Toyota Way” of identifying problems, analyzing them, developing countermeasures, communicating, and improving (Rother, 2009). The people not only work with high levels of skill but also with discipline to reflect on and improve their current processes and work. However, even if the employees follow a work standard, the work process will tend to slip towards chaos if left alone. This has also been stated in the second law of thermodynamics or entropy. In order to prevent the processes from decaying the organization follows a disciplined regime that enables them to think and behave in a way that continuously improves and adapts to the requirements of the environment. This has been achieved by changing people’s previous inefficient and wasteful patterns to patterns that will enable the organization to grow. Toyota teaches its employees a standardized, conscious means for understanding the situations and problems and providing a solution for the same by thinking scientifically. Thus, Toyota’s success is due to the behaviour routines followed by the organization and its people. This has proved to be more efficient, effective, and optimal than trying to implement tools, techniques, or introducing a set of principles. Takahiro Fujimoto (1999) in his book, “The Evolution of a Manufacturing System at Toyota” stated the following lines.“… it is my impression that, after many contacts with Toyota employees, they view new situations in daily life—whether new problems, solutions elsewhere, partial solutions to the present problems, or chance events—as potential opportunities to improve competitiveness more often than those in other firms.”Toyota was able to change the thinking pattern of its employees only through practice. It takes a lot of conditioning to make the behavioral routines last and become the employees’ second nature. Consequently, Toyota’s managerial as well as mentoring activities involve having people develop their improvement and intellectual capabilities by practicing. In order for any organization to succeed, just doing what another organization (Toyota) is doing will not take them forward and lead to accomplishment of their set goals. Furthermore, emulation of TPS should



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not entail adopting TPS exactly like how Toyota had developed it. Organizations need to re-interpret and re-model the Toyota style of people management in order to successfully accomplish their goals.

PEOPLE MANAGEMENT METHODS THAT CAN BE OPTIMIZED BY ALL ORGANIZATIONS

Organizations should adopt on-the-job training programs instead off-the-job ones. When employees are provided on the job training, they can effectively make use of the “Genchi Genbutsu” principle. An employee can better understand the organization processes and problems by actually observing the challenges and problems. Additionally, employees should be given the freedom to make judgment calls even during the initial training. This provides the employee with a sense of empowerment and enables to add value to the organizational processes. Employees should also be trained in problem solving methods and thinking scientifically from their initial training.

Organizations, instead of making their employees follow a strict set of rules, must have them adhere to a broad set of guidelines. These guidelines will provide the employees to act freely and according to what they think is right, but still adhere to the compony protocols. However, it should be ensured that employees follow a standardized behaviour routine which can only be achieved through continuous practice. Moreover, each employee should be assigned a mentor to help them work according to the organizational requirements as well as grow from a professional and personal standpoint. In other words, a modern-day apprenticeship system should be employed by organizations.

While evaluating employees as well as managers, process performance and learning over results should be emphasized. The organization should look at how the goals have been achieved, how employees handle various organizational issues, how organizational skills are fostered, and how the employees as well as managers have developed, motivated, and empowered the people. The criteria employed for the same can include:

• Willingness to listen and learn from others

• Capturing the subordinates’, seniors, as well as fellow employees’ trust and respect

• Behaviour while working in teams

• Persistence and resilience while dealing with a challenging situation or problem

• Ability to take quick and effective decisions

• Interest in coaching and mentoring others

• Modestly/ Humility

Emulating from the Toyota people management style, the information in organizations should be disseminated laterally. Communication should be the vital component of the company with knowledge being diffused in all directions. The communication



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network must be transparent, everybody should know what everybody else is doing. The practice of converting experimental or tactic knowledge into an explicit form must be followed in the company. Employees feel safe, even empowered, to safe, even empowered, to voice contrary opinions and contradict superiors (Takeuchi et al., 2008). Confronting the boss should be made acceptable; bringing bad news to the boss should be encouraged; and ignoring the boss sometimes must be excused. This will help maintain a healthy work environment in any organization. Furthermore, organizations must have face to face interactions not only with the employees but also with their supplier, distributors, and dealers. It is also important for organizations to create support mechanisms. The formal mechanisms support the organization’s communication networks by disseminating best practices and company values. The employees should be encouraged to join a wide variety of informal groups to create a multilayered communication network.

Workshops and value-stream mapping can be implemented for the continuous improvement of an organization. The improvement workshops are special improvement efforts that temporarily bring together a team of people to focus on a particular process (Rother, 2009). The value mapping tool is used to look at the flow of material and information and the associated lead time, across multiple processes. However, in order too improve the lead time, organizations must look to improve their individual processes in a value stream. Value mapping is not for improving the processes, it is for checking whether the process-level improvement efforts match the organization’s targets as well as serve the requirements of the external customer. Organizations can adopt a globalized system of human resource management. The globalized system creates unified, standard global operating procedures.

CONCLUSIONHuman Resource Management (HRM) is one of the most crucial roles in today’s business environment. Organizations in today’s contemporary business world face various internal and external challenges which are growing steadfastly. This paper has endeavored to provide a solution for contemporary issues faced like standardization of processes, poor communication, employee motivation, etc. For this, the manufacturing company Toyota has been taken into consideration. Even though Toyota is known for its lean manufacturing processes, the most vital element for their success are the people. The people include not only the employees but also their suppliers, distributors, and dealers. The Toyota Way is one which effectively integrates people, processes, and technology. Toyota Way - style of people management which implements a collection of coaching values, managerial values, and business methods together. These values-respect, kaizen, humility, courage, and “Genchi Genbutsu” have been analyzed and are proposed as generic solutions that can be optimized by each and every organization. However, while emulating the Toyota Way, organizations need to re-interpret and modify it according to their organization culture. The Toyota people management style is a system of continual, coordinated, and comprehensive effort to bring about a change in the leadership and management skills across an organization.



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REFERENCES[1] Fujimoto, T. (1999). The Evolution of a Manufacturing System at Toyota.

[2] Holland, P. (Ed.). (2019). Contemporary HRM Issues in the 21st Century. Emerald Publishing.

[3] Rother, M. (2009). Toyota Kata: Managing people for Improvement, Adaptiveness, and Superior Results. McGraw-Hill Education.

[4] Stankiewicz, K. (Ed.). (2015). Contemporary Issues and Challenges in Human Resource Management. Retrieved from https://www.researchgate.net/publication/290376851_Contemporary_Issues_and_Challenges_in_Human_Resource_Management

[5] Takeuchi, H., Osono, E., & Shimizu, N. (2008, June). The Contradictions That Drive Toyota’s Success . Retrieved from Harvard Business Review: https://hbr.org/2008/06/the-contradictions-that-drive-toyotas-success

[6] Ulrich, D. (1998, January-February). A New Mandate for Human Resources. Retrieved from Harvard Business Review: https://hbr.org/1998/01/a-new-mandate-for-human-resources

[7] Wilburn, D. & Obara, S. (2012). Toyota by Toyota: Reflections from the Inside Leaders on the Techniques That Revolutionized the Industry.


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25

Financial Distress among Indian SMEs Listed on National Stock Exchange

Sushma Verma1, Aakruti Patel2 and Samik Shome3

1Vivekanand Education Society’s Institute of Management Studies and Research 2,3Institute of Management, Nirma University, Ahmedabad

ABSTRACT

SMEs significantly contribute to the growth and economic development of any country. The purpose of this study is to assess the financial health of Indian listed SMEs and to identify the existence of financial distress, if any. For this, manufacturing firms listed on NSE SME Exchange have been taken as sample. Altman’s Z-score model has been used for identifying the existence of financial distress. Further, Ordinary Least Square (OLS) regression has been performed to identify the most significant variable affecting the Z-score of each firm individually. The study finds the existence of severe financial distress among the sample SMEs. This is an indication of a very alarming situation. The study identifies the need of immediate measure to prevent an otherwise certain business failure. Asset turnover ratio and profitability ratio are identified to be the most significant ratios affecting the Z-score value. Inference drawn from the study can be of immense interest to various stakeholders including government, regulatory bodies considering the economic significance of SMEs..

Keywords:Financial Distress, Small and Medium Enterprises, National Stock Exchange, Altman’s Z-score Model, Ordinary Least Square (OLS) Regression

INTRODUCTIONFinancial distress is considered as the predecessor of bankruptcy (Hotchkiss et. al., 2008). The reasons for financial distress can be broadly classified into two categories: (i) macroeconomic factors which include fluctuation in business cycle, sudden change in government policies, variation in interest rates, etc. and (ii) firm specific factors like fund constraints, poor operational performance, inappropriate capital structure, among others (Terdpaopong and Farooque, 2011). Considering the disastrous effect of bankruptcy on overall economic growth and on society, distress prediction is of great economic significance. Early warning signals of financial distress are extremely important for any business, so that timely corrective action may be initiated (Shome and Verma, 2020).

Small and Medium Enterprises (SMEs) are considered as the backbone of any economy (Adalessossi and Utku, 2015, Verma et al., 2020). This is due to their significant contribution in job creation and inclusive sustainable growth (Green et.



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al., 2006; Ayyagari et al., 2011). Governments all over the world are paying significant attention towards growth and development of SMEs.

However, it is perceived that SMEs across nations are finding it difficult to raise funds through various formal sources due to several reasons like, information asymmetry, inability to provide collateral, high transaction cost etc. (Mullineux, 2013; Yoshino and Taghizadeh-Hesary, 2018). Several countries have taken initiatives to set up trading platform exclusively for SMEs, to help them have better access to finance, like AIM (Alternate Investment Market) in United Kingdom, MOTHERS (Market of the High-growth and Emerging Stocks) in Japan, Chinext of China to name a few.

The Securities and Exchange Board of India (SEBI) in 2010 issued guidelines for setting up trading platform exclusively for SMEs with lower entry barrier as compared to the main board. Eventually, in the year 2012, two exclusive SME platforms were introduced at Bombay Stock Exchange (BSE) known as BSE SME Exchange and NSE Emerge in National Stock Exchange (NSE).

These platforms are expected to improve access to finance for the SMEs by reducing information asymmetry and bringing transparency in financial reporting as listing criterion includes mandatory disclosure and publication of financial statements. However, since the terms of listing are less stringent at SME exchanges as compared to main board, concerns have been raised about quality of firms opting for listing (Neilsson, 2013). Moreover, even post listing no significant increase is observed in availability of debt financing for SMEs (Verma et. al., 2020).

Due to the lack of financial data of SMEs, very few studies have tried to examine their financial distress (Selassie et. al., 2016). Moreover, most of the empirical research of credit default in case of SMEs are focussed on financial institutions and not on the firm level (Tabouratzi et. al., 2017). Considering the fact that they are an integral part of any economy and also drives the economic development, it is reasonable and prudent to assess the financial distress of SMEs. Given this backdrop, the objective of this paper is to assess the financial health of listed SMEs and examine the existence of financial distress, if any. It also aims to identify the most significant financial ratio that influence the distress of the selected companies.

The study, by assessing the financial health of SMEs, helps in identifying the need of timely intervention in this sector. The companies with weak financial fundamentals can be identified and appropriate measures can be taken. The well-timed intervention can help in preventing an otherwise certain business failure.

The organization of this paper is as follows: section 2 provides an overview of SME sector in India followed by the research methodology in section 3. Data analysis along with discussion of the result is provided in section 4. Section 5 gives the concluding remarks including the limitations and future scope of the study.

SMEs IN INDIA: AN OVERVIEWIn line with the global perspective, SMEs in India also play a very significant role for sustainable socioeconomic growth. With more than 63.4 million SMEs in the



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country1, this sector creates highest number of jobs after agriculture sector and employs more than 150 million people2 mostly skilled and semi-skilled. It is an important pillar for maintaining growth rates and provides stability during economic downturns (Abdin, 2017).

SME’s contribute approximately 31 per cent to the service sector Gross Domestic Product (GDP) and around 45 per cent in total industrial output in India (Boateng et al., 2019). The contribution of this sector is approximately 49 per cent of total exports for 2018-19 (Arora, 2019). SMEs play a pivotal role in many industries as supportive organizations thereby contributing tremendously to the fiscal progress of the country. As this sector is typically dominated by labor-intensive industries and requires relatively lesser capital investments, it has a high capacity to contribute to the economic development.

All companies, irrespective of its size, need funding on appropriate terms and conditions for meeting all its commitments. In absence of funds for timely payments to various concerned parties, company may be declared bankrupt (Beaver, 1966). The dynamics of the business world is changing rapidly causing major disruptions to companies. As most of the SMEs typically form a part of supply chain of large companies, they become highly vulnerable to such disruptions. SMEs are also prone to financial distress despite its high contribution in GDP, generation of employment, enhancement of entrepreneurial skills, economic diversification, innovation, maintaining balanced regional development, earnings from export and social stability (Jahur and Quadir, 2012; Wang, 2016; Abdin, 2017). The reasons for financial distress are either related to availability of finance or firm’s fundamentals3. For SMEs in India, the government, on its part, has taken a number of initiatives to promote these enterprises through many schemes and subsidies like Prime Minister Employment Generation Programme, Market Promotion and Development Scheme, Export Market Promotion, Technology Upgradation Fund Scheme to name a few with a goal of achieving balanced long term growth objectives.


The study is based on secondary data collected from the ACE Equity database. The five years data of listed SMEs between 2015 and 2019 has been taken to analyse their financial health. Financial data for listed SMEs can be reliable in view of listing requirements. This study has chosen the SMEs listed on NSE SME Exchange. The data was available for 86 listed companies, comprising of both manufacturing and service sectors. Of this, 63 companies belonging to manufacturing sector has been considered for the study. Out of this, data for seven companies were incomplete and hence are ignored. Therefore, in total 56 companies are taken for the study. 1https://www.msme.gov.in/desk.js-sme-jan-2019.html accessed on November 12, 2020.2 https://economictimes.indiatimes.com/small-biz/sme-sector/msmes-to-contribute-50-to-indias-gdp-provide-15-cr-jobs-in-5-years-gadkari/articleshow/70092226.cms?from=mdr accessed on December 10, 2020.3 https://virtualaw.in/2019/12/23/financial-stress-insolvency-issues-for-msmes/ accessed on December 20, 2020.



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In this study, Altman’s Z-score model (1968) has been used to assess the financial health of each firm. This model continues to be the most popular model to predict business failure across sectors, globally.

It is based on five accounting ratios which helps to assess various aspects of financial health of any firm. Thereafter, OLS regression has been performed to identify the most significant variable affecting Z-score of each firm.

AltmAn’s z-sCore moDel

Altman’s Z-score model, developed by employing data from 66 companies, was originally meant for listed manufacturing firms. This model was later modified to be used for predicting bankruptcy in non-manufacturing firms known as alternate Z”-score model (1984). This original model is represented as follows:

Z = 0.012X1 + 0.014X2 + 0.033X3 + 0.006X4 + 0.999X5

Where,

X1 is the measure of liquidity which is calculated as ratio of net working capital to total assets;

X2 is a measure of profitability calculated as ratio of retained earnings to total assets;

X3 is also the measure of profitability calculated as ratio of operating profit to total assets;

X4 is the leverage ratio measured as ratio of book value of equity to book value of debt;

X5 is the turnover ratio calculated as sales to total assets; and

Z is the overall indicator known as Z-score.

It is evident that all these five ratios focus on different aspects of the financial wellbeing of any company. Based on Z-score, the companies are divided into following three zones as shown in Table 1.

Table 1: Categorization of Firms Based on Z Score

Z-score Zone Interpretation

Z<1.81 Distress Zone (D) High Probability of insolvency in the near future.

1.81<Z<2.99 Grey Zone (G) Marginal cases. Altman referred this Zone as the “zone of ignorance”.

Z<2.99 Safe Zone (S) Low Probability of insolvency in near future.Source: Altman (1968)

DATA ANALYSIS AND DISCUSSIONThis section presents the results of the analysis which is done with the objective of understanding the financial situation of listed SMEs and to identify the existence of financial distress. For this, five different ratios are calculated in the Altman’s model and then the combined Z-score is calculated to evaluate if the company is financial distressed (Table 2).



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Table 2: Z-score of All Sample Companies (2015-2019)

Sr. No. Company Name

Z-scoreZone

2015 2016 2017 2018 2019

1 A And M Jumbo Bags Ltd. 1.011 1.010 1.019 1.101 1.052 D

2 Ahlada Engineers Ltd. 1.111 1.112 1.049 1.118 1.133 D

3 Airo Lam Ltd. 1.161 1.162 1.044 1.172 1.174 D

4 ANI Integrated Services Ltd. 2.016 2.016 1.886 2.647 2.168 G

5 ASL Industries Ltd. 0.917 0.916 0.925 0.910 0.906 D

6 Beta Drugs Ltd. 1.235 1.243 1.202 1.296 1.306 D

7 Bohra Industries Ltd. 0.870 0.870 0.750 0.877 0.809 D

8 Bright Solar Ltd. 1.155 1.159 1.012 1.246 1.614 D

9 CMM Infra Projects Ltd. 1.718 1.717 1.609 1.733 1.718 D

10 Continental Seeds and Chemicals Ltd. 3.813 3.808 3.670 3.824 3.822 S

11 Debock Sales and Marketing Ltd. 0.498 0.498 0.402 0.512 0.508 D

12 Emkay Taps and Cutting Tools Ltd. 1.326 1.319 1.134 1.296 1.326 D

13 Euro India Fresh Foods Ltd. 0.720 0.722 0.651 0.743 0.743 D

14 Felix Industries Ltd. 0.561 0.564 0.460 0.666 0.570 F

15 Focus Lighting & Fixtures Ltd. 2.368 2.381 2.410 2.455 2.475 G

16 Ganga Forging Ltd. 1.087 1.085 1.060 1.090 1.091 D

17 Innovative Tyres & Tubes Ltd. 1.021 1.023 1.038 1.050 1.029 D

18 Jakharia Fabric Ltd. 1.888 1.889 1.869 1.875 1.889 G

19 KHFM Hospitality & Facility Management Services Ltd. 1.446 1.446 1.286 1.447 1.450 D

20 Kritika Wires Ltd. 1.889 1.891 1.784 1.898 1.904 G

21 Lagnam Spintex Ltd. 0.859 0.860 0.886 0.866 0.865 D

22 Laxmi Cotspin Ltd. 1.403 1.407 1.344 1.402 1.406 D

23 Laxmi Goldorna House Ltd. 2.488 2.492 2.293 2.496 2.499 G

24 Lexus Granito (India) Ltd. 0.948 0.950 0.909 0.959 0.950 D

25 Madhya Pradesh Today Media Ltd. 1.102 1.104 1.018 1.133 1.152 D

26 Marshall Machines Ltd. 0.722 0.722 0.669 0.736 0.741 D

27 Marvel Decor Ltd. 0.765 0.764 0.646 0.873 0.824 D

28 Milton Industries Ltd. 0.837 0.836 0.729 0.844 0.849 D

29 Mohini Health & Hygiene Ltd. 1.191 1.194 1.183 1.205 1.210 D

30 Moksh Ornaments Ltd. 4.156 4.157 4.016 4.171 4.173 S

31 Narmada Agro-base Ltd. 2.715 2.717 2.613 2.722 2.728 G

32 Omfurn India Ltd. 1.131 1.131 1.046 1.131 1.119 D

33 Par Drugs and Chemicals Ltd. 0.785 0.784 0.844 0.789 0.802 D

34 Pulz Electronics Ltd. 1.269 1.273 1.192 1.311 2.671 G

Table 2 (Contd.)....



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Sr. No. Company Name

Z-scoreZone

2015 2016 2017 2018 2019

35 Pushpanjali Realms and Infratech Ltd. 0.390 0.395 0.249 0.412 0.382 D

36 Rajshree Polypack Ltd. 1.213 1.231 1.196 1.240 1.264 D

37 RM Drip and Sprinklers System Ltd. 1.142 1.144 1.068 1.163 1.100 D

38 Sarveshwar Foods Ltd. 1.239 1.236 1.100 1.250 1.246 D

39 Servotech Power Systems Ltd. 1.394 1.396 1.285 1.415 1.414 D

40 Shree Tirupati Balajee FIBC Ltd. 1.684 1.688 1.600 1.699 1.704 D

41 Sikko Industries Ltd. 0.908 0.905 0.791 0.927 0.924 D

42 SKS Textiles Ltd. 1.537 1.538 1.432 1.539 1.539 D

43 SMVD Poly Pack Ltd. 1.166 1.166 1.162 1.181 1.181 D

44 Solex Energy Ltd. 1.979 1.983 1.854 2.005 2.017 G

45 Sonam Clock Ltd. 1.259 1.264 1.214 1.273 1.283 D

46 SS Infrastructure Development Consultants Ltd. 0.956 0.960 0.794 0.995 1.033 D

47 Surani Steel Tubes Ltd. 2.883 2.890 2.799 2.896 2.888 G

48 Thejo Engineering Ltd. 1.432 1.433 1.321 1.445 1.457 D

49 Transwind Infrastructures Ltd. 1.071 1.075 0.935 1.092 1.094 D

50 Uniinfo Telecom Services Ltd. 0.958 0.960 0.797 0.999 1.010 D

51 United Polyfab Gujarat Ltd. 1.008 1.010 1.036 1.010 1.013 D

52 Uravi T and Wedge Lamps Ltd. 0.895 0.896 0.869 0.909 0.909 D

53 Vadivarhe Speciality Chemicals Ltd. 0.840 0.840 0.845 0.838 0.820 D

54 Vinny Overseas Ltd. 2.253 2.253 2.191 2.261 2.263 G

55 Wonder Fibromats Ltd. 2.168 2.176 2.104 2.190 2.189 G

56 Zodiac Energy Ltd. 1.942 1.944 1.764 2.096 2.002 GSource: Author’s CalculationNote: D represents Distress Zone; G represents Grey Zone; and S represents Safe Zone.

It can be observed that only two out of 56 companies (4 per cent) considered in the study are in safe zone. It shows that the financial situation of the listed SMEs in the NSE platform are not healthy. Furthermore, about 21 per cent of the companies fall in grey zone category whereas 75 per cent of the companies are in distress zone. Almost all companies show consistency in their zone categories as per Altman’s model for the chosen period of five years. These results are indicative of a very unfavourable situation of SMEs warranting immediate remedial action. The probable firm specific reasons may be poor working capital management, lower operating efficiency and overall inadequate profitability situation resulting in lower values of different X variables constituting Z score. The non-availability of finance on appropriate terms and conditions is also one of the major issues negatively affecting performance of SMEs (Singh and Wasdani, 2016). No shift in zone categories means that not much has changed over a period of five years in terms of firms’ performance. It also implies that probably SMEs have not been able to avail the

...Table 2 (Contd.)



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benefits of various initiatives taken by the government for their betterment. In the year 2015, several policy measures were initiated by the Government for SMEs such as credit guarantee scheme, creation of Rs 100 billion equity fund etc.

ols regression Further, to identify the most significant financial ratio that influence the distress of the selected companies, OLS regression was performed for each of the distressed firms between independent variables X1, X2, X3, X4 and X5 and the dependent variable Z. Of the total 42 distressed firms, regression result was significant only for 31 firms whereas, for 11 firms the results were indeterminate. Table 3 shows the results of the regression analysis indicating most significant variable for each firm.

Table 3: List of Significant Variables in Bankruptcy Study (based on regression output)

Sr. No.

Company Name Significant Variable

Level of Significance

1 A And M Jumbo Bags Ltd. X4 0.0032 ASL Industries Ltd. X1 0.0153 Beta Drugs Ltd. X5 0.0124 Bohra Industries Ltd. X3 0.0175 Debock Sales and Marketing Ltd. X4 0.0016 Emkay Taps and Cutting Tools Ltd. X3 0.0017 Euro India Fresh Foods Ltd. X5 0.0018 Felix Industries Ltd. X3 0.0229 Ganga Forging Ltd. X3 0.003

10 Innovative Tyres & Tubes Ltd. X1 0.00811 Lagnam Spintex Ltd. X5 0.01512 Lexus Granito (India) Ltd. X3 0.02413 Madhya Pradesh Today Media Ltd. X5 0.00314 Marshall Machines Ltd. X2 0.00115 Marvel Decor Ltd. X5 0.00116 Mohini Health & Hygiene Ltd. X3 0.00717 Omfurn India Ltd. X4 0.00818 Par Drugs and Chemicals Ltd. X1 0.02619 Pushpanjali Realms and Infratech Ltd. X3 0.01120 Rajshree Polypack Ltd. X5 0.01521 RM Drip and Sprinklers System Ltd. X5 0.02022 Sarveshwar Foods Ltd. X2 0.03623 Sikko Industries Ltd. X1 0.00324 SMVD Poly Pack Ltd. X3 0.01525 Sonam Clock Ltd. X5 0.00226 SS Infrastructure Development Consultants Ltd. X5 0.02527 Transwind Infrastructures Ltd. X5 0.00028 Uniinfo Telecom Services Ltd. X1 0.00629 United Polyfab Gujarat Ltd. X4 0.00930 Uravi T and Wedge Lamps Ltd. X3 0.03131 Vadivarhe Speciality Chemicals Ltd. X5 0.030

Source: Author’s Calculation



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As seen from Table 3, variables X5 (Sales /Total Assets) and X3 (EBIT/Total Assets) are found to be the most significant variables affecting the value of Z-score. This is like conclusion derived by Selassie et. al. (2016) based on their study of financial distress in SMEs in Ethiopia. Tabouratzi et. al. (2017), based on their study on Greek manufacturing SMEs, found leverage ratio to be very significant in addition to asset turnover ratio and return on total assets. Furthermore, in Table 4, the study tried to rank the variables based on the frequency of appearance as most significant variable among the companies.

Table 4: Ranking of Variables based on Frequency of Appearance

Sr. No.

Name of the Variable Number of Companies Rank

1 Working Capital to Total Assets (X1) 5 3

2 Retained Earnings to Total Assets (X2) 2 5

3 EBIT to Total Assets (X3) 8 2

4 Book Value of Equity to Total Liabilities (X4) 4 4

5 Sales to Total Assets (X5) 11 1

Total No. of Companies 31

Source: Author’s Calculation

It is observed that variable X5 i.e. sales/total assets (asset turnover ratio) is appearing as the most significant variable for the maximum number of companies (11 out of 31 firms) followed by variable X3 i.e. EBIT/total assets (return on total assets) (8 firms). The variable X2 i.e. Retained earnings/total assets appeared as significant only for two companies. Firms are required to work towards increasing their sales and operating profit to improve their financial situation.

CONCLUDING REMARKS

The study aimed to assess the financial health of listed SMEs in manufacturing sector in India and to examine the existence of financial distress. In total, 56 manufacturing firms are considered here. Results of Altman’s Z-score model indicate that approximately 75 per cent of the companies studied are in the distress zone whereas around 21 per cent of the chosen firms are in grey zone. Thus, more than 95 per cent of the firms are in undesirable zone. This is an indication of a very alarming situation. There is a very high probability of grey zone companies to become a part of distressed group if corrective actions are not initiated immediately.

There is a need of fresh assessment of various aspects of business after receiving early warning signals of financial distress. Cooperation from lenders is also expected in case, a need for major financial reengineering is identified. Lenders should have a clear-cut framework for supporting distressed SMEs as per Government directives. Government on its part needs to ensure effective implementation of existing schemes for supporting distressed SMEs such as credit guarantee schemes for subordinate debts and to launch more such schemes. These steps will help the distressed SMEs and SMEs in grey zone to move into a better financial situation.



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The financial aspect of bankruptcy is only studied in this paper through secondary data analysis. Future studies can dwell deeper by using primary data for identifying the reasons for the prevailing situation. The data used in the study include only listed SMEs belonging to manufacturing sector. Similar study can be done for service sector SMEs also. Further studies can also be done with a broader sample including non-listed MSMEs (Micro, Small and Medium Enterprises).

REFERENCES[1] Abdin, M.J. (2017). SMEs and Our Development Goals. Available at SSRN: https://ssrn.com/

abstract=2923886 or http://dx.doi.org/10.2139/ssrn.2923886

[2] Adalessossi Kokou & Utku. D. Burcu. (2015). Financing difficulty of Small and Medium Enterprises in West African Economic and Monetary Union Area, (edit; David publishing) China-USA Business Review, February 2015, Vol. 14, No. 2, 79-99 doi: 10.17265/1537-1514/2015.02.003.

[3] Aggarwal, N., & Thomas, S. (2017). Response of firms to listing: Evidence from SME exchanges (No. 2017-022). Indira Gandhi Institute of Development Research, Mumbai, India.

[4] Altman E.I. (1968). Financial ratios discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance 23. 589-609.

[5] Arora, A. (2019). From the desk of J.S. (SME), Retrieved from https://www.msme.gov.in/desk.js-sme-jan-2019.html accessed on November 12, 2019.

[6] Ayyagari, M., Demirguc-Kunt, A., & Maksimovic, V. (2011). Small vs. young firms across the world: contribution to employment, job creation, and growth. The World Bank.

[7] Beaver, W. H. (1966). Financial ratios as predictors of failure. Journal of accounting research, 71-111.

[8] Boateng, K., Sodem, N. & Nagaraju, Y. (2019). The Contribution of MSMEs to the Growth of the Indian and Global Economy. Research Review - International Journal of Multidisciplinary, 4(3).

[9] Government of India (2015). Report of the Committee Set Up to Examine the Financial Architecture of the MSME Sector. Ministry of Finance. New Delhi

[10] Green, C.J., Kirkpatrick, C.H., & Murinde, V. (2006). Finance for small enterprise growth and poverty reduction in developing countries. Journal of International Development: The Journal of the Development Studies Association, 18(7), 1017-1030.

[11] Hotchkiss, E.S., John, K., Mooradian, R.M., & Thorburn, K.S. (2008). Bankruptcy and the resolution of financial distress. In Handbook of empirical corporate finance (pp. 235-287). Elsevier.

[12] Jahur, M.S., & Quadir, S.N. (2012). Financial distress in small and medium enterprises (SMES) of Bangladesh: Determinants and remedial measures. Economia. Seria Management, 15(1), 46-61.

[13] Mullineux, A. (2013). Enterprise financing: Lessons for Sub-Saharan Africa. Proceedings from a September 2012 report for the AFDB at an African Finance Journal conference.

[14] Nielsson, U. (2013). Do less regulated markets attract lower quality _rms? Evidence from the London {AIM} market. Journal of Financial Inter- mediation, 22(3), 335-352.

[15] Selassie, E.G., Tarekegn, G., & Ufo, A. (2016). Analysis of Financial Distress and its Determinants in Selected SMEs in Wolaita Zone. Global Journal of Management and Business Research.

[16] Shome, S., & Verma, S. (2020). Financial Distress in Indian Aviation Industry: Investigation Using Bankruptcy Prediction Models. Eurasian Journal of Business and Economics, 13(25), 91-109.



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[17] Singh, C., & Wasdani, P. (2016). Finance for micro, small, and medium-sized enterprises in India: Sources and challenges.

[18] Tabouratzi, E., Lemonakis, C., & Garefalakis, A. (2017). Determinants of failure in Greek manufacturing SMEs. Corporate Ownership and Control, 14(3), 45-50.

[19] Terdpaopong, K., & Al Farooque, O. (2011). Financial distress, restructuring and turnaround: evidence from Thai SMEs.

[20] Verma, S., Shome, S., & Patel, A. (2020). Financing preference of listed small and medium enterprises (SMEs): evidence from NSE Emerge Platform in India. Journal of Entrepreneurship in Emerging Economies.

[21] Wang, Y. (2016). What are the biggest obstacles to growth of SMEs in developing countries? –An empirical evidence from an enterprise survey. Borsa Istanbul Review, 16(3), 167-176.

[22] Yoshino, N., & Taghizadeh-Hesary, F. (2018). The role of SMEs in Asia and their difficulties in accessing finance.


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26

Gen-Z and Gig Economy

Ishani Jain1, Mahima Bachani2 and Sakshi Agarwal3

1,2,,3IMBA Fourth Year, Nirma University, Ahmedabad

ABSTRACT

The onset of rapid digitalisation and industrialisation, the trend of flexible working has evolved in the recent times. Flexible workers and freelancers are creating an environment of Gig economy in the industry. Gig economy was termed by Former New Yorker editor Tina Brown in 2009, because of the 2008 financial crisis, there was rise in unemployment level, thus workers started looking for alternatives to earn money and they started providing their services to various companies on demand. Gradually the traditional system of 9-5 working hours is changing because of disruptive technological innovations and new age competitors.

According to a survey Deloitte global millennial conducted by Deloitte in 2019, 81% Gen-Z’ers would consider joining the Gig economy. Gen-Z comprises of people born in late 90’s and early 2000’s. There are various factors that Gig workers consider while working in this economy, such as flexible working hours, work life balance, to earn more, diverse experience, distinctive opportunities etc. Various factors that firms consider while hiring freelancers with the help of online platforms. These online platforms are facilitating flexibility, low transaction coasts, cost effectiveness, competitive advantage, low barriers for market entry, access to a broader talent pool and wider markets. Thus, Gig economy is promoting economic growth and in expanding opportunities.

INTRODUCTIONWork on demand via app is becoming the new normal these days. The Gig Economy is a concept that revolutionise the 9 to 5 drudgery by offering flexibility and independence at your work. A Gig Economy is a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. Particularly, Gig Economy has risen dramatically which has resulted in creating large number of opportunities for workers to be hired on demand and complete short-term projects known as “Gigs”. Taking into consideration the current situation of COVID-19 which has disrupted the job market has become yet another major reason in the rise of Gig economy.

Quoting India specifically as an example to study the rise of people entering into this economy can be seen in this pandemic situation as a lot of employees were laid off, had pay-cuts or did not get the job, majority of these people can now be seen as the part of this flexible economy. The government of India has extended support



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to Gig workers by announcing Social Security benefits be extended to Gig workers through the Code of Social Security. Thus making this modal of employment acceptable. Even though, looking at the support offered by the government, people are still hesitant to enter into this economy because of various factors that play vital role in decision making. This paper attempts to analyze various factors that affect the decision making of people to enter into this economy. Some of these factors are family support, societal expectations, income, flexible working hours, so on and so forth. For instance, in India the cultural norm is to have a permanent job with regular income while Gig worker shifts between different jobs and gets paid accordingly because of this they do not receive family support.

Generation Z (GEN Z) born between 1990 – early 2010s form a major part of this economy, mainly because they have desire to explore, become independent, have diverse work experience, different lifestyle etc. This generation is contributing towards the growth of Gig Economy. The following research dives deep into exploring the factors that affect the decision making of this generation to become the part of this economy

LITERATURE REVIEW

Most researchers consider Gen Z’s between mid-1990 to mid-2000’s. According to them this generation values autonomy at work which includes non-traditional employment that is working as a gig worker. They also suggest that Gen Z employees value lifestyle choices over security.(Ravikiran Dwivedula, 2019)

Gig economy offers variety of tasks to variety of people around, offering great opportunities and jobs with great benefits. Jobs offered by Gig economy are like double edged sword both good and bad jobs, good and bad are in terms of quality of jobs and work. Jobs in the gig economy differ in their wages and in the degree of control that workers have over their work, the degree of flexibility workers have over when and how long they worked. Jobs being good or bad depend on individuals as well as the task they are assigned with. Working in the gig economy for some might be their main source of earnings, while for others it might supplement their earnings from other jobs or simply be something to fill the time. (Arne L. Kalleberg)

Another research paper reveals that Gen Z that they believe they are more hardworking and prefer to have work schedules that are flexible. This generation prefers to work when they are willing to and not like being forced by their employer to work, they want to have work lifestyle where they can have annual leaves whenever they want and work in different shifts. (Bureau, 2019)

Fourth Industrial Revolution is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres. Technology has this potential to transform work and workplaces, displace jobs, create new jobs, and impact living conditions. Like each coin has two sides similarly Gig economy also has two sides- an optimistic and pessimistic. An optimistic scenario suggests that gig work can increase savings, productivity, and flexibility. A pessimistic scenario suggests major job losses, increased insecurity in employment, de-skilling,



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and growing inequalities. Businesses “enjoy numerous benefits from working with freelancers such as a fluid workforce adaptive to change, wider access to hyper-specialized talent, cost savings and an increase in productivity” Gig workers enjoy flexibility in their employment: they can work from anywhere at any time, possess autonomy, and can decide the number of hours per day to be dedicated. This business model liberates for workers seeking to escape the strictures of organizational hierarchy and bureaucracy. This view of gig work, more often than not associated with professionals in possession of a university education, is that of such workers being freelancers, able to pick and choose their job assignments with different clients. (Alex de Ruyter).

The sharing economy model is glorified for its ability to promote economic growth, offer firms and workers flexibility, expand opportunity, spaces for employment in the inefficiencies of capitalism and exploit them through the sheer scale of the internet. It facilitates endless matching opportunities and transactions worldwide that could not happen without the enabling technologies. Individuals can work from wherever they happen to be, when they want to, choosing from a variety of jobs. Some workers make more money than they otherwise could or simply make money they otherwise couldn’t: for those fixed at home because of disability or caring for children or the elderly, this contingent work may be their only option for getting by. For others, it supplements income from regular jobs. The opportunities offered on these platforms are distinctive and offers variety of chances to people to earn, enhance and enrich. (Liebman)

One person’s flexibility is another person’s uncertainty—just as one person’s stability is another person’s rigidity. There is difference between flexibility by workers and for workers. Flexibility for workers occurs when companies change work practices or working time to better suit worker needs. But when employers complain about a lack of flexibility, they usually mean flexibility by workers. Researchers differentiate between two types of flexibility by workers. They are functional and numerical flexibility. Functional flexibility refers to the employer’s ability that deploys employees between activities to match changing workloads, production methods or technology. While, Numerical flexibility is the employer’s capacity to adjust labor inputs to fluctuations in output. These different types of flexibility are usually associated to different type of management styles.(PEETZ)

On-tap workers remain under constant pressure to take whatever work is available and accessible whenever it is available, the times and spaces that were once impinged upon by paid labor—the home, cultural spaces, outdoor public space, public transport—become progressively infringed on. It encapsulates the way in which work can invade the rest of life. It additionally interrupts into private time when consultants feel constrained to stretch out their working hours to make sufficient income, when they crowd extra income-earning tasks into the tiny gaps between their other activities, or when they work through the night to supply markets in other time zones.

Digital technologies deliver the workplace straight to the worker via a single device and allow activities to be carried out almost simultaneously—work tasks interspersed



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with domestic ones. As the worker uses the same devices and applications for paid work and other activities alike, the boundaries among the different areas of his or her life—between labor and leisure, or between paid and unpaid labor— become obscured so much that it is hard to depict what is really work. Work infringes on private space as well, when the home becomes the workplace, and thus the site of paid work as well as of unpaid domestic work, family care, physical and administrative tasks, leisure, and family and social relationships. (Webster)

whAt is gen z?Widely known as Generation Z—born between 1995 and 2012. Generation Z is the demographic cohort succeeding Millennials and preceding Generation Alpha. According to a 2019 Bloomberg report, Gen Z made up for 32 percent of the global population, with India’s Gen Z population at 472 million. Gen Z is the most ethnically and racially diverse generation in history: One in four is Hispanic, 14% are African-American and 6% are Asian, according to studies led by the Pew Research Center. Gen Zers are more dependent on technology and always desire to explore more and experience new adventures.

whAt is gig eConomy?The gig economy gets its name from each bit of work being associated to an individual ‘gig’. It also known by names like sharing economy, platform economy, collaborative economy. This economy is a free market system wherein organizations hire independent workers on short term contracts inviting pool of diversity in the organization.

who Are gig workers?The term “gig worker” covers a number of worker statuses—freelancer, temporary worker, and contract worker all being part of Gig Economy. This people enter into formal agreements with on-demand companies to provide services to the company’s clients.

Factors

Income

Organizations give monetary benefit in form of salary to employees for the network done by them. Income of an individual is important to them because it represents their ability to work efficiently, their social position, economic position, so on and so forth. The Gen Z who are more aware about their rights (e.g., equal pay, overtime pay, etc.) analyses the income given by organizations. Some people work because income is the most important factor for them while for some it is not that important.

Flexibility of Working Hours

Gen Z are looking for gigs or jobs that offer flexible working hours rather than working mundane job of 9 a.m. to 5 p.m. They prefer to have multiple team-based projects that they can do anytime they want. This generation do gig along with pursuing education degrees. Thus, they are more inclined to enter the gig economy as it offers the same.



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Work–life Balance

It is defined as an equilibrium between career and personal life. Gen z prefer to work in organizations and take up jobs that helps them maintain this equilibrium. The gig economy offers a solution by letting gen z’s take up gigs that they prefer and whenever they want.

Mental Well-being

An improper work life balance results in affecting mental well-being of any individual. Gen Z are more well aware about the importance of mental well-being. They prefer to know the kind of job they are doing will impact positively on their mental health.

Skill Enhancement

Gen Z believe in the phrase ‘Jack of all trades, master of none’ meaning they do jobs that upscale their skills and helps improve it. They are skilled in many things and can-do different type of jobs. Unlike their older generation who prefer to have specialization in one skill.

Diversity (In Terms of Different Projects)

Gen Z who are skilled in different jobs do different types of projects and often prefer to have jobs that challenge them. They prefer diversity in terms of project because they have had access to resources that help them learn skills that are necessary in today’s time. They prefer to have entrepreneurial opportunities. However, some people might prefer to have a job in which they are most specialized.

Mobility (Ease of Switching Jobs)

Gig economy offers workers to switch between different jobs because gig workers work in different companies according to the time span depending on the duration of projects, contract periods. But if a gig worker has an ease of switching between different jobs, he/she also face the difficulty of finding a new gig. In a permanent job, employees have to think twice before they can switch to a different job while they have the security of job.

Perks and Benefits

Companies offer various perks and benefits along with the basic salary to its permanent employees. On the other hand, gig workers are paid on the basis of projects and no additional benefits are given to them. also, there are not many laws that protect the right of gig workers. However, because of the pandemic, gig workers have been on rise and government of India has rolled out law to protect them.

Family and Societal Support

From the Indian perspective if we analyses the gig worker, family and society does not support them. this is because the Indian culture is that a person should have a stable, permanent job with regular income. Though, gen z wants to do jobs that they love and not do jobs solely because they offer good income and stability.



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Workload

The COVID-19 pandemic has increased the workload of employees because of layoff (as work of removed employees is now being done by existing employees), technology (employers can contact employees anytime they want), competition, etc. Gen Z work more and harder but ensure that the work load do not hinders their work life balance and mental well-being.

METHODOLOGY

methoD of DAtA ColleCtion

To conduct the research in depth we have used both quantitative and qualitative data. We did primary and secondary research to derive at the conclusion. For primary data, we have conducted a survey.

Survey

Prepared a questionnaire having some general questions such as name, age, gender, occupation, field of study and the factors were listed in which 5-pointLikert scale was provided to respondents to mark the intensity of the factors that affect them. (The questionnaire is attached in the annexure.)

For secondary data, we relied on:

Existing research papers- Papers already prevailing on various databases. These research papers helped us in deriving the knowledge about the topic and also helped us in analyzing the gap which we can study upon. All the sources and papers that we went through are provided in the references.

sAmpling methoD

Sampling method refers on determining the population size, sample size and method of sampling. It provides an outline on the basis of which research is conducted.

Sample Population refers to any group of people or objects that form the subject of study. So, for our sample population we have chosen the people who be generation that is born between late 1990’s and mid 2000’s.

SamplingDesign

In it, we have chosen Non-probability sampling design. And in it further, we have chosen Convenience sampling. Justification- Convenience sampling is used when researcher takes his/her neighbors, friends, family members, colleagues and passers-by. We are going to do same in our sample frame. Convenient sampling means to collect data from conveniently available respondents. This method is adopted as it is economical, easy to do research, enables quick responses and is less time consuming.

SampleSize

We have chosen 300 respondents who are going to participate in our survey. This sample size is considered as it will be enough to analyze the impact of the factors and the resultant decision making by the people. It will help us in understanding



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that what factors promotes people to enter into this economy and what factors will act otherwise.

Justification

There are two reasons:

1. We have chosen this sample size on the basis of confidence level basis. It is an expression on how confident a researcher can be of the data obtained in a sample. In other words, it indicates how frequently target population would give an answer that lies within the confidence interval

� Confidence interval means margin of error that is allowed for in case of miscalculation or change in circumstances.

� We decided to have 95% of confidence level in the sample response. Thus, giving 5% of margin of error.

� We have calculated it as under:

� Margin of error = 1/square-root of sample size

� Therefore, MOE= 1/square root of 300

� MOE= 1/17.32

� MOE= 0.057

� Therefore, at the sample size of 300, there is only 5.7% of margin of error

� Thus, giving approximately 95% of confidence level on the sample.

2. Researcher’s confidence level is also influenced by other factors like responsiveness of sample, motivation to participate, authenticity of answers, etc. Thus, with the help of convenience sampling method, our group has determined that we would get response from 300 respondents while eliminating sampling and non-sampling error.

type of reseArCh

It is a descriptive research as we are doing in depth analysis of every factor that impacts the decision making of people, specifically the Gen Z to enter into this Gig Economy. For qualitative data we completely relied on the existing research that has been done on the topic. For quantitative data, we rolled out a questionnaire and did primary research.

reseArCh gAp

Generation Z has got a push to enter into the work force because of the COVID-19 pandemic. Now because of the pandemic this generation is mainly working as gig workers simultaneously other generations have joined the league. The human resource departments of various organizations have to address the problem arisen because of COVID-19 like change in working landscape (work from home, gigs, etc.)



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along with new age labor force. Generation Z is increasingly inclined towards working as Gig workers because of various factors and they have different expectations from their job.

obJeCtive of the stuDy

To study the factors that affects the decision making by Gen Z to enter into Gig Economy. There are various reasons that people consider before becoming the part of this economy as all these factors do impact their future.

hypothesis

• Income, perks and benefits is an important factor for gig workers who are of Gen Z generation.

• Gig workers that pursue higher education tend to value work life balance and mental well-being more than income.

• Gen Z will do gig work even though they do not get family and societal support and prefer to have mobility in their job that is ease of switching between different jobs

DAtA ColleCteD

Fig. 1

Fig. 2



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Fig. 3

Fig. 4

Fig. 5 Source: All the graphs have been formed by the authors of this paper.

DAtA AnAlysis

The different factors that influence the decision making of Gen Z to enter into this economy is different for people of different Gender. In the questionnaire, we have given three options for gender: Male, Female, Prefer Not to Say.

IncomeandGender

Table 1

Factors that Influence your Decision [Income]

Gender Prefer Not to Say Grand TotalFemale Male

1 4 8 2 142 11 14 2 273 27 19 6 524 22 31 5 585 62 69 18 149

Grand Total 126 141 33 300



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In the above table, we can observe that for 23% of male respondent’s income is the most important factor while for 20.67% of female respondent’s income is more important factor. On the other hand, for all nearly 30% respondent’s income is not an important factor. (respondents who have chosen option 1, 2, and 3). Even though this workforce is willing to enter in this economy, income still plays an important role before selecting a job or gig.

PerksandBenefitsandGenderTable 2

Factors: [Perks and Benefits]

GenderPrefer Not to Say Grand Total

Female Male

1 2 4 3 9

2 27 30 4 61

3 40 31 11 82

4 36 40 8 84

5 21 36 7 64

Grand Total 126 141 33 300

Perks and benefits to employees such as travel allowance, food coupons, etc. are given by companies mostly to permanent employees and not contract based workers or gig workers. Often, companies exploit these workers as there are no provisions protecting them. Thus, companies mostly provide basic income to these workers.For most respondents, income is an important factor but for 27% of the total respondents perks and benefits is a somewhat likely to affect their decision to enter into this economy. While for 12% and 13% this factor is likely to affect their decision for female and male respondents respectively. This implies that respondents are aware of the fact that gig workers are not given the same level of benefits given to permanent employees in an organization. Thus, they might not choose or leave a gig because of this factor solely.

FlexibilityofWorkingHoursandGenderTable 3

Factors: [Flexibility of Working Hours]

Gender Prefer Not to Say Grand Total

Female Male

1 5 3 1 9

2 10 10 1 21

3 25 36 5 66

4 54 61 16 131

5 32 31 10 73

Grand Total 126 141 33 300

For 68% respondents who have chosen option 4 and 5 belonging to different gender flexibility in working hours is of importance. For male and female respondents have both have preferred flexibility in working hours. This implies that this gen z



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prefers to have work schedules that are flexible and can be adjusted with their other activities.

Work–lifeBalanceandGenderTable 4

Factors: [Work-life Balance]


Female Male

1 2 4 2 8

2 15 12 1 28

3 47 39 12 98

4 29 43 8 80

5 33 43 10 86

Grand Total 126 141 33 300

Work-Life Balance for 15.67% female respondents is somewhat important (option 3) while for male respondents 14.33% work-life balance is more important. And for respondents in prefer not to say category this factor is also somewhat important. This implies that female respondents are less likely to accept or reject a gig work on the basis of work-life balance. While for male respondents it is important.

MentalWellBeingandGender

Mental Well-Being of a person is important for organization as well as for the person himself. This is because a person with good mental well-being will be able to work productively. Nowadays, Gen Z suffer from depression, anxiety, peer pressure a lot because of social media, cut throat competition, etc. But they are becoming aware about the importance of mental well- being more than their older generations.

Table 5

Factors: [Mental Well Being]


Female Male

1 1 4 2 7

2 16 16 2 34

3 38 39 7 84

4 41 53 10 104

5 30 29 12 71

Grand Total 126 141 33 300

In the survey conduct nearly 50% of the respondents including all genders are likely and most likely to be influenced by the decision making to enter into gig economy. Mental well-being is also influence by work-life balance, family and societal support. If the work aspect on an individual is satisfactory, he is less likely to project negative behavior. Family and societal support given to people helps them boost their motivation and perform well. Surprisingly, 27.33% of the respondents are somewhat likely to be influenced by this factor. It is important to note a greater number of male



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respondents have given importance to mental well-being. 25% Male respondents (including option 4 and 5) and only 19% (including option 4 and 5) of the female respondents give importance to this factor.

SkillEnhancementandGenderTable 6

Factors: [Skill Enhancement]


Female Male

1 4 4 2 10

2 10 20 6 36

3 28 35 7 70

4 42 39 9 90

5 42 43 9 94

Grand Total 126 141 33 300

Skill enhancement at jobs helps employees improve their skill and learn new skills. Gen Z now prefer jobs/gig that offer them the opportunity to do so and broadens their job description. Respondents of female, male and prefer not say category have responded 28%, 27% and 9% respectively are likely and most likely that this factor influences their decision making to enter this economy/ this implies that Gen Z realize the importance of skill enhancement in today’s time.

Diversity,MobilityandGenderTable 7

Factors: [Diversity (in Terms of

Different Project)]


Female Male

1 4 5 3 12

2 17 24 5 46

3 36 34 8 78

4 34 42 7 83

5 35 36 10 81

Grand Total 126 141 33 300

Table 8

Factors: [Mobility Ease of Switching

Job)]


Female Male

1 5 10 5 20

2 19 29 4 52

3 37 44 6 87

4 39 31 6 76

5 26 27 12 65

Grand Total 126 141 33 300



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Diversity in terms of different projects helps Gen Z’s in skill enhancement as different projects require them to have different skills and ability to perform them. Diversity in these terms can be obtained when gig workers have ease of switching between jobs as gigs require them to complete a single project at times and their job is finished.

All the genders give diversity in terms of different project nearly equal preference between the range of 3 to 5 (somewhat likely to most likely) that is 45%, 37% and 8%, female, male and prefer not to say respectively.

While most female respondents 13% prefer to have mobility and 10% and 8% of male and prefer not say respondents respectively prefer mobility. Overall 29% of respondents give somewhat likely preference to mobility

WorkloadandGenderTable 9

Factors: [Workload] Gender Prefer Not to Say Grand Total

Female Male

1 9 9 2 20

2 11 22 6 39

3 26 32 5 63

4 38 40 9 87

5 42 38 11 91

Grand Total 126 141 33 300

Workload of work becomes important factor in decision making because excessive workload could lead to work life disbalance which will result in instability in mental well-being. Female and male respondents give nearly equal importance to this factor – 26.67% and 26% respectively (including option a and 5). This implies Gen Z realize that workload should be such that it manageable which can be completed efficiently and effectively.

FamilyandSocietalSupportandGenderTable 10

Factors: [Family and Societal

Support]


Female Male

1 3 9 3 15

2 21 20 4 45

3 35 35 11 81

4 34 45 10 89

5 33 32 5 70

Grand Total 126 141 33 300



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Gigworkers do not have permanent job and regular income thus they are not given much family and societal support. More than 50% of the respondents consider family and societal support important factor in decision making to enter the gig economy. Equal 24.33% and 25.67% of female and male respondents respectively give preference to this factor. This implies that Gen Z seek family and societal support and willing to enter this economy if they get this support.

professionAl bACkgrounD

Professional background plays a vital role for gig workers, as it gives them a base to rise from beginning and shows the way for their career ahead. In the survey, we provided option for graduation, post-graduation and doctoral programmes.

IncomeandProfessionalBackgroundTable 11

Factors: [Income] Professional Background Grand Total

Doctoral Programmes Graduation Post-Graduation

1 9 5 14

2 3 14 10 27

3 7 25 20 52

4 5 31 22 58

5 19 54 76 149

Grand Total 34 133 133 300

From the survey conducted, the responses collected it has been observed that 149 respondents out of 300 respondents i.e., 49.67% respondents believe that income is one the most important factor and 19.33% respondents find income as important factor for entering into Gig Economy, while only 4.67% respondents consider income as least important factor.Out of the three professional backgrounds i.e., Graduation, Post-graduation and Doctoral programmes, it is found that out of 149 respondents who feel that income is a major factor 57.14% student of Post-Graduation background, 40.6 % of Graduation while 55.8% of Doctoral programme background believes income as major factor to work in gig economy.That concludes that major respondents i.e., 57.14%of Post-Graduation believe the same whereas Post Graduation also has the least i.e., 1.67% of respondents for considering income as the least important factor.In Doctoral background, 0 respondents consider income as least important factor, 7 out of 34 respondents consider as somewhat likely important reason to enter into the gig economy. Respondents from Graduation background, 6.76% of total respondents of graduation background consider income as least important factor whereas 40% of respondents consider income as most important factor.Earning income remains one of the important factors for an individual despite of working in gig economy or working in 9 to 5 job, the only major difference is gig



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workers tend to earn pool of money by working with different companies and different projects with their own leisure and comfort

FlexibilityinWorkingHoursandProfessionalBackground

Flexibility is what one looks in today’s time. Individuals look for dynamic and flexible environment to work. This type of environment according to their need tend to increase efficiency and effectiveness in the work.

Table 12Factors: [Flexibility of Working Hours]

Professional Background Grand Total


1 1 3 5 9

2 3 13 5 21

3 8 34 24 66

4 12 53 66 131

5 10 30 33 73

Grand Total 34 133 133 300

It is observed that 24.33 % feel flexibility is most important factor whereas we can also observe that around 43.67% respondents believe flexibility is important reason, this can be concluded as though flexibility is an important factor but this is not the sole or the only reason which gig workers look to enter into the gig economy. To observe individual professional backgrounds, the data says that among Graduates 2.25%, 3.75% Post graduates, 2.94% of Doctoral programme do not consider flexibility as an important reason to look to for entering into this economy. Whereas 25.5% Graduates, 18.04% Post graduates, 23.5%Doctoral programme students voted for somewhat likely, this means they are bit confused about their reason for flexibility for being part of gig economy.

WorkLifeBalanceandProfessionalBackground

Balancing work life along with personal life is the need of the hour and a concept trending in corporate world.

Table 13

Factors: [Work Life Balance]



1 2 4 2 8

2 3 16 9 28

3 13 39 46 98

4 6 37 37 80

8 10 37 39 86

Grand Total 34 133 133 300

The survey shows that, 32.67% that is majority of respondents are not sure about the work life balance as an important factor for being the reason to be the part of



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gig economy. It also says that 34.5% of Post graduates voted for considering this factor as somewhat likely important. While 28.67% and 26.675 respondents consider work life balance as most important and important respectively. 5.88% of Doctoral programmes 3% and 1.5% of Post graduate respondents tend to believe this factor as least important for being part of their decision making.

MentalWellBeingandProfessionalBackgroundTable 14

Factors: [Mental Well Being]



1 2 5 7

2 4 17 13 34

3 10 39 35 84

4 12 45 47 104

8 8 30 33 71

Grand Total 34 133 133 300

34.67% and 23.67% consider this factor as important and most important respectively, while 28% think it as somewhat important and 2.33% believe it as least important factor. The data can be seen a bit contradicting here, majority of respondents i.e., 32.67% felt work life balance factor as somewhat important while it is observed that majority of respondents i.e., 34.67% feel mental well-being as one of the important factors. This can be understood that respondents do not feel that work life balance is the key to their mental well-being.

SkillEnhancementandProfessionalBackground

Gen Z generation involve themselves in activities to enhance their skills and enrich their personality along with their skills. Because today’s corporate world demand skilful individuals to be in the workforce. So, to survive in corporate world one needs to pursue different task, activities, courses to stay active in the market.

Table 15

Factors: [Skill Enhancement]



1 1 4 5 10

2 8 11 17 36

3 9 33 28 70

4 9 40 41 90

5 7 45 42 94

Grand Total 34 133 133 300



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The data shows that 31.33% and 30% respondents consider skill enhancement as an important factor. They tend to work with different companies on various projects and gain experience in different field and master skills. As we know that corporate world demands Jack of all individuals, the respondents understand market in a better way and tend to mould themselves according to the market and its demand.

DiversityinTermsofProjectTable 16

Factors: [Diversity in Terms of

Different Project]



1 4 5 3 12

2 7 19 20 46

3 10 34 34 78

4 4 39 40 83

5 9 36 36 81

Grand Total 34 133 133 300

To gain and attain skills individuals need to work and tend to work on diverse projects. It is understood that 27.67% and 27% respondents consider diversity of projects as an important and most important factor respectively for being the reason to gain diversity in their skills and portfolio to enter into gig economy.11.7% of Doctoral programme, 3.75% Graduates and 2.25% Post Graduates do not consider diversity in terms of project as an important factor for them to enter into gig economy.

MobilityandProfessionalBackground

Along with diversity in projects, another benefit that gig economy provides to its gig workers is mobility i.e., ease of switching job. As the jobs are based on short term contracts gig workers tend to switch jobs quickly and attain diversity in their projects.

Table 17

Factors: [Mobility (Ease of Switching

Job)]



1 3 5 12 20

2 7 29 16 52

3 8 37 42 87

4 5 32 39 76

5 11 30 24 65

Grand Total 34 133 133 300



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29% of respondents voted mobility as somewhat important factor for being the reason for them to enter into the economy. While 6.67% do not consider mobility as an important reason.

31.5% of Post graduates, 27.8% of Graduates and 23.5% of Doctoral programmes are not sure about mobility being an important reason for them to be into gig economy.

PerksandBenefitsandProfessionalBackground

Perks and benefits are another factor that attracts majority of individuals towards projects and organisations.

Table 18

Factors: [Perks and Benefits]



1 4 3 2 9

2 7 22 32 61

3 11 40 31 82

4 5 37 42 84

5 7 31 26 64

Grand Total 34 133 133 300

Majority of Post Graduates respondents i.e., 31.5%, 27.8% Graduates and 14.7% of Doctoral programme respondents believe perks and benefits as the important reason for them to influence them to entry into the economy. While 1.5% Post graduates, 2.2% Graduates and 11.7 % Doctoral programme respondents feel perks and benefits as least important for them being a driving factor to influence them to work in gig economy.

WorkloadandProfessionalBackground

Workload—individuals try to run away and tend to and want to stay away from the burden of work. Burden of work affects the efficiency and effectiveness of the work of individual. And it is generally observed and found that there is less of burden of work in gig economy because of its characteristics and features of like short time contracts, flexibility etc.

Table 19

Factors: [Workload} Professional Background Grand Total


1 3 10 7 20

2 8 15 17 39

3 8 27 28 63

4 6 41 40 87

5 10 40 41 91

Grand Total 34 133 133 300



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30.33% and 29% of respondents feel that workload is most important and important factor respectively for them to influence them to work in gig economy, whereas 6.67% respondents do not feel it as an important factor to be considered.Of total respondents of 6.67% considering this factor as least important, 35% of respondents have Post graduation as their professional background, 50% belong to Graduation and 15% belong to Doctoral programme category

FamilyandSocietalSupportandProfessionalBackground

Having family and societal support is also a major reason for individuals for their decision- making process specially in country like India where family decisions and support matters to individuals.

Table 20

Factors: [Family and Societal

Support]



1 3 4 8 15

2 4 26 15 45

3 13 32 36 81

4 6 41 42 89

5 8 30 32 70

Grand Total 34 133 133 300

*Source: All the tables in used in data analysis have been formed by the authors of this paper.

From the responses received it is found that 29.67% of individuals consider this as an important factor and from those 47.19% are from Post-graduation background, 46.065 from Graduation and 6.7% from Doctoral programme category.Whereas 27.06% of Post graduates 24.065 of graduates and 38.2% of Doctoral programme respondents consider this as a somewhat important factor, they are least likely to comment on this factor.

FINDINGSThe findings from this research paper are:

• Income, perks and benefits is an important factor for gig workers who are of Gen Z generation.

� From the above research, this hypothesis is partially rejected. This means that respondents of Gen Z would evaluate income as a factor in their decision making to enter gig economy while not adhere equal importance to perks and benefits received from organizations. From the data collected, 49.67% of the respondents responded most likely for income as a factor while only 21.33% responded most likely for perks and benefits.

• Gig workers that pursue higher education tend to value work life balance and mental well-being more than income.

� From the data gathered and analyzed it is observed that respondents pursuing higher education that is pursuing Doctoral programmes tend to value their



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work, work life balance and mental well-being more important than compared to income as a factor. They do not consider income as the most important factor to be considered to do job and enter into gig economy.

� Data from table 1 of income and professional background tells that only 8% of Doctoral program students consider income as one of the most important and important factors for them to be in gig economy. While 28.3% of graduates and 32.67% post graduates consider income as one of the most important and important factors. This data tells that Graduates and Post graduates students are found to be inclined more towards earning income and become independent by exploring corporate world with diverse projects and companies to enhance their skills, while Doctoral program respondents do not consider income as one of the most important factors for them to enter into the gig economy, instead they consider work life balance and their mental well-being as most important factor for them to be considered.

� Hence it can be proved by the data that was received through the survey conducted that higher education students tend to value their work, mental well-being and work life balance more than to value income more. Because they understand that for earning income and doing work effectively along with efficiency mental well-being is more important. If an individual manages its work life balance, his/her mental peace is maintained successfully along with it. And mental well-being will increase efficiency in the work which will help an individual to earn peacefully and successfully without compromising on its quality of work.

• Gen Z will do gig work even though they do not get family and societal support and prefer to have mobility in their job that is ease of switching between different jobs. This hypothesis is rejected from the above research conducted. Only 20% of the respondents including all the genders responded that least likely and less likely that their decision to enter gig economy will affected by family and societal support. This means that Gen Z will be willing take gigs that are supported by their family and friends.

LIMITATIONS OF THE STUDY• The research study has taken limited sample size to study the factors that affect

the decision making of Gen Z.

• Push to gig economy has been given by the COVID-19 pandemic because of which more workers have entered into this economy. Later, when situation becomes normal, these people might shift to more permanent jobs. Thus, it will lead to change of preference for the above factors.

• The respondents in questionnaire include people from gen z who have entered the gig economy or are interested in entering this economy. Thus, the study does not cover responses entirely from gig workers.

• The research study lacks the point of view of organization on how they manage gig workers and address their issues and needs.



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• There are not enough research papers that provides in depth analyses of factors that Gen Z analyze when entering into in gig economy.

CONCLUSIONThe research paper helped us understand that their exist various reasons to enter into any kind of job. Individuals consider various factors before taking up any job. Similarly, there are certain factors that influence GEN Z community to be part of Gig economy. Gen Z finds these factors as per their choices and leisure. Individuals tend to earn income along with their education simultaneously. Earning income has been concluded as one of the most important factors that pushes Gen Z individuals into Gig economy along with their education and become independent. But income is not the only purpose and factor behind working in Gig economy, having flexibility in working hours, diversity, mobility, skills enrichment and various other benefits they get attracts Gen Z community. Gen Z community is driven majorly by technology. Individuals tend to work smarter than harder and in their own leisure time and comfort zone. As the technology is evolving corporate world is also evolving accordingly and so trend of working too. Gig economy has got a greater push due to COVID-19 and many individuals have entered and shifted to Gig economy to earn and gain experience.

REFERENCES[1] Alex de Ruyter, M.B. (n.d.). Gig Work And The Fourth Industrial Revolution. Journal of

International Affairs Editorial Board .

[2] Arne L. Kalleberg, M.D. (n.d.). Good Jobs, Bad Jobs in the Gig Economy. JOB QUALITY . University of Illinois Press on behalf of Labor and Employment Relations.

[3] Liebman, W.B. (n.d.). Debating the Gig Economy, Crowdwork and New Forms of Work. Bund- Verlag GmbH.

[4] PEETZ, D. Flexibility, the ‘gig economy’ and the employment relationship. In D. PEETZ, The Realities and Futures of Work. ANU Press.

[5] Webster, J. (n.d.). Microworkers of the Gig Economy. Sage Publications, Inc.

[6] Bureau, D.Q. (2019). Meet Gen Z. Dataquest, 8.

[7] Ravikiran Dwivedula, P.S. (2019). Gen Z: Where are we now, and future pathways. Journal of Human Resource Management, 14.


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Abraham, Shino, 138

Agarwal, Anjali, 57

Agarwal, Sakshi, 263

Aiswarya, B., 146

Bachani, Mahima, 263

Bhargava, Anvay, 108

Bhatt, Kaushal, 181

Chandrana, Sarthak, 91

Chandrashekar, Arvind, 10

Chandrashekar, Ashwyn, 10

Chatterjee, Monali, 234

Chavda, Pankaj, 46

Desai, Ruta S., 1

Gandhi, Hariom, 202

Gangwar, Sharda, 195

Gayen, Dilip Kumar, 22

Gokhru, Anjali, 202

Gupta, Shikha, 155

Gupta, Sonal, 155

Jain, Ishani, 263

Jayswal, Mitesh, 165

Kala, Parikshit, 57

Karani, Anushree, 165

Kaur, Prabhjot, 67

Kaushik, Tanuja, 22

Kochitty, Sumina Susan, 138

Maheshwari, Nimisha, 195

Mathewand, Rincy V., 226

Mittal, Ankit, 67

Mokashi, Arun S., 1

Nair, Rohini S., 209

Saji, P.A., 119

Panda, Rasananda, 165

Patel, Aakruti, 253

Patel, Ankita, 195

Patel, Nikunj, 155

Pillai, Sindhu. S., 226

Pimpalkar, Shlok, 155

Prasanth, M.K., 226

Purohit, Hemaprabha, 102

Rajappan, Smitha, 209

Ramasundaram, G., 146

Rawal, Priyanka, 219

Rawat, Pramiti, 244

Sacheti, Apoorva, 91

Samuel, Noble, 127

Shah, Pooja, 34

Sharma, Ankush, 219

Sharma, Shilpi, 108

Sharma, Vanya, 108

Sheth, Jeel, 181

Shome, Samik, 253

Sinha, Aryansh, 67

Tiwary, Aaditya Chandra, 67

Tripathi, Shashwat, 91

Verma, Sushma, 253

Author Index


Author Index

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ABOUT THE EDITORS

Hardik Shah is working as an ‘Associate Professor & MDP Chair’ at Institute of Management, Nirma University. He is a passionate faculty, trainer, and researcher having around 18+ years of experience in HRM & OD domain. He successfully facilitated and steered a number of training/ consulting assignments in the different organizations including Johnson Controls, Hitachi Air-Conditioning, IOCL, BPCL, Aga Khan Foundation, Nuvoco Vistas Corp, Mahindra Comviva, NIAM, CEL, Apollo Tyres, Reckitt Benkiser (RB), EXL Service Inc., IFB, NIIT, NHPC, ISP, GSRTC, IIT-Roorkee, NTPC, SAIL, UPCL, HPCL, GUVNL, EISS, Hindustan Zink, GETRI, Cadila Pharma, Eureka Forbes etc. He is an ‘Associate Certified Coach (ACC)’ from ICF, USA. He is also a certified ‘Psychometric Testing Professional’, ‘MBTI Administrator’, ‘Thomas PPA & TEIQue Administrator’, and ‘Hogan’ Certified Professional. He has authored three books and over 35+ research papers. He is on the editorial board of AI Practitioner, the only journal worldwide, dedicated to ‘appreciative inquiry’. He is also a reviewer for the Journal of Public Administration and Policy Research (JPAPR), Journal of Management Development (JMD) and European Journal of Training and Development (EJTD). His current areas of interests include competency mapping, projects teams, managerial capability building, psychometric testing/assessment, and appreciative inquiry.

Poonam Channiwal has more than 13 years of experience in academics. Her areas of interest include Talent Management, Labour Laws and Generation Y in the Workforce. She is a reviewer of Asian Journal of Management Cases, published by Sage Publications India. She is recipient of ‘Emerging HRD Thinkers Award’ conferred by ISTD, New Delhi. She has published research papers in international and national journals and presented papers in national and international conferences. She has also written case studies primarily on contemporary issues on Human Resource Management like role of inherent biases in Performance Management, HR integration in the merger and acquisition, role of corporate culture etc.

Bhajan Lal is an Assistant Professor in HRM area. He has completed his doctoral degree from Indian Institute of Technology (IIT) Roorkee. He has more than 6 years of experience in teaching, research, and consultancy. He has published and presented more than 15 articles in different journals and conferences of repute. He is also the recipient of Second Best Paper award at in a national conference held at Poornima Group of Colleges, Jaipur. He is also the reviewer for many international journals like South Asian Journal of Business Studies, International Journal of Business Governance and Ethics to name a few. His research interests are in the areas of Human Resource Analytics, Psychometric Assessment, Organizational Change & Development and Performance Management.

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