CHAPTER 2

2.1 REVIEW OF LITERATURE

 Mann (2009), in her Ph.D. thesis, evaluated the recruitment, selection,

training and the wage policy of SSIs in Punjab. A sample size of 429 units had
been taken for the purpose of the study. She concluded that recruitment and
selection in SSIs were done at the factory gate and through agents and HRM
personnel needed some special training. She further concluded that employees
were of the view that wage policy had differed in different SSIs and wage matters
were the major factor of conflict in these organizations. She suggested that there
was need of awareness of HRM practices in SSI and specific type of training
was required to improve the skill of employees.

 ZulfqarBowra and KabirNiazi (2011) in their research paper “Impact of

human resource practices on employee perceived performance in banking sector
of Pakistan” found that The HR practices and employee perceived performance
has positive and significant relationship and it is very crucial for banks to
understand that their HR practices affect the performance of employees and in turn
affect the overall performance of a bank be it private sector or public sector.
Many researchers have recognized numerous HR organizing practices
that significantly influence performance.

 Tripathy (2008) Observed that an organization can have competitive advantage

by utilizing its human resources. This can be achieved through sound HRD
Practices. According to him HRD include three C‘s- Competencies, commitment
and culture. An optimum level of progressive climate is essential for facilitating HRD
in an organization. It was resulted that good HRD Practices can influence financial
and other performance indicators in the organization.

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 Kundu.Subhash C., DivyaMalhan (2009) in their article on "HRM Practices in
Insurance Companies: A Study of Indian and Multinational Companies" opined hat
Competitive advantage of a company can be generated from human resources
(HR) and company performance is influenced by a set of effective HRM practices.
The results of this study indicated that both multinational companies and Indian
companies have to significantly improve their practices regarding performance
appraisal, training and financial benefits, and HR planning and recruitment. Service
sector is human resource intensive business. To gain competitive advantage,
service organizations should emphasize on human resource management
practices, as has been indicated in the results. A well-defined framework of human
resource management practices benefits not only the organization but also the
employee. HR policies of an organization benefit the employee by providing better
opportunities for growth in terms of better compensation, benefits, training and
development opportunities, and career management, in turn leading to job
satisfaction and self- fulfilment.

 Venkateswaran (1997) Conducted a study entitled ―A note on HRD Climate‖

revealed that early identification of human resource potential and development of
their skill are the main tasks of the HRD department. The study based on the
response of 132 executives of large public sector unit of engineering organization.
The study proves the existence of favourable HRD climate in the organization. The
results of the study revealed that the HRD dimensions increases the employee
interest in the work place thereby eliciting a higher level of performance.

 Singh S.K (2008)In his research entitled ― HRD Climate: Interventions and
challenges‖ examined that survival of the organizations in dynamic and complex
environment require 60 employee involvement, productivity and this can be
achieved with the help of quality targets, quality circles, training and development &
suitable method of performance appraisal etc. Above these HRD
interventions/practices should be implemented in a suitable way and HRD Climate
should be conductive so that cooperation of employees can be achieved and
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conflicts can be sorted out which in turn increase the effectiveness of the
organization.

 Majeed (2009) reviewed the HR practices in knowledge-intensive firms and

MNEs. Perception of gold-collar workers with reference to the relationship with top
managers was discussed through the thirty articles published over the period 2000
to 2006. With the help of Chennai qualitative matrix (found in this study), the study
thematically analysed the HR antecedents that emerged into four distinctive
categories. The study found that one must keep in view the variable personnel
demands and extensive training and development needs of knowledge workers,
and highlights the need for attention to be paid to unique scientific practices for
managing gold-collar workers in knowledge-intensive firms.

 Vazirani (2007) is of the opinion that, the best HR Practices enable the company
to affect radical improvements, not just incremental ones.

 Bharathi (2009) explained the value of HR functions in business and its impact
on higher productivity, enhanced quality, better customer service, good industrial
relations and lower cost which influence the profitability of an organisation. Effective
HR practices could play important role in achieving all the above said factors.

 Guest (1999) suggested the best Human Resource Practices that included: job
design in such a manner that employees have the responsibility and autonomy to
use their knowledge and skills; selection process framed to carefully identify best
potential; training as an on-going activity; two-way communication process to keep
everyone informed; and employee participation to increase employees‘ awareness
about the implications of their actions, for the financial performance of the firm.

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 Kundu (2007) conducted a study on, Human Resource Management Practices in
Shipping Companies: A Study.‘ The main objective of the study was to assess.

 Patil, Kallinath S. (2007) in his study opined that, the service sector plays a vital
role in the development of the country. LIC has grown into a living saga. This
transformation has not come about overnight. A breakthrough has been achieved
on the strong foundation laid by the people of this great institution, which provided
confidence and inner strength to explore new frontiers through the program of
massive decentralization, development, expansion and diversification undertaken in
recent years. The organization is today on the threshold of new vistas, striving and
straining for reaching new heights and surging ahead in quest of excellence.

 Hemant Rao (2007) emphasized the changing role of HR. There was dramatic
change in HR during past five years. This study shows the significant role of human
resource managers in various areas like Empowerment of workers Business
process Reenergizing, Total Quality management, Humanization of work, and
Quality of work life. It was the challenge of HRM to balance the impact of
liberalization and globalization on productivity. Earlier the role of Personnel
department was to give advice or support when asked but the changing
professional employment scenario emphasized the role of HR professional while
dealing with employees of different regions, caste, language and social
backgrounds.

 Maitin, T.P. (2003) in his article "Dynamic Human Resources" stated that, out of
wide variety of resources which participated in the process of organizational growth,
human resources are the most dynamic element of efficiency and productivity. In
the context of modern information age, manpower owns the responsibility of
information mobilization and their profitable utilization, which increases performance
of organization. The role of human resource as great intellectual assets in
management is too valuable to accelerate the rate of economic progress.

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 Malik and sur (2003) in their study on "Human Resource Accounting in India”
observed that the progress of any organization is absolutely dependent on the
skilful utilization of its human resources. Even in the modern world, an organization
may own adequate financial resources and acquire physical resources with latest
technology as it needs, it would find difficult to manage its affairs, if the human
organization of the concern is not strong enough. However, the strange irony is that
in India most of the organizations do not recognize it properly. They do not adopt
human resource accounting (HRA) although it could contribute significantly both to
internal and external management decisions. HRA also helps the people of the
organization in improving their performance and bargaining capacity. It makes each
of them conscious about the ratio between his contribution towards the betterment
of the concern and the expenditure incurred by the concern on him.

 G.V.Chalam and L. Srinivas (2005) in this paper made an attempt to explore the
basic gender disagreement with respect to HRD Climate in 20 branches of SBI at
Andhra Pradesh. Findings of the study showed that women employees have much
more concern on HRD climate than men. They come up with high level of
satisfaction in respect of HRD Practices. Female Employees had higher degree of
pleasure toward HRD Climate. It was also revealed that women respondents closely
observed and followed the Human Resource development climate of the Bank and
were also very loyal toward bank regarding their commitment toward work.

 Mishra and Bhardwaj (2002) in their research entitled ―HRD climate: An

empirical study among private sector managers‖ examined the nature and extent of
HRD climate over the hieratical levels in large private sector organizations located
in eastern parts of India. A sample of 107 managers at senior, middle, and lower
levels is taken. The standardized questionnaire on HRD climate developed by Rao
and Abraham (1990) was used consisting of a 5-point scale to measure the three
categories i.e. general climate, OCTAPAC culture and HRD mechanisms. For
analysing results mean scores and percentage scores of each item was calculated,
and t-test was applied to verify the results. The conclusion was that the HRD
climate prevailing in private sector organizations was good and satisfactory. Further
63 the authors recommended that the top-level managers should be responsible

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enough to introduce a well-integrated sound training policy for imparting training to
the employees.

 Hassan et al (2006) investigated whether ISO certification contribute toward

improvement in HRD system and also examined the role of HRD Practices on
employees development and quality orientation in the organization. Results
indicated that ISO certified companies, as compared to others, obtained higher
means on some HRD Variables. It was identified that organizations with better
learning, training and development, reward and recognition, and HRIS (Human
resource information system) promote HRD climate in the organization. Quality
orientation was estimated by career planning, performance guidance and
development, role efficacy, and reward and recognition.

 Amiri, M. and Nobakht, A. (2016). It was found that, performance management

is an essential way to improve the effectiveness of organization and achievement of
organizational goals. However, the effect of talent management among HR
professionals and managers is more essential for improving the circumstance of the
organization for achieving the goals

 Chattopadhyay.P, (2013). Author has stated that, it may be underscored that the
return on talent is a calculable measure both- in quantitative and qualitative terms.
In the opinion of the author, in typical organizational situations, this concept can
wonder though it must be said in the organization, especially those belonging to the
same ranks may create problems related to camaraderie. The author has further
stated that, development of the right attitudes and enduring managers and people
with required powers can bring forth result several times higher than the
expenditure that may be incurred in finding talents, harnessing them and deploying
them not only for the purposes of today but also tomorrow.

 L. Overton, titled, (2008). Through this study, the article author has explained
employee’s perspectives regarding their untapped potential. The author has

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observed that employees were not only using e-learning provided as a part of their
job but also using it to develop skills outside of their work. The study is based on a
survey of 1950 employees. The author has found that 57 percent of employees
were engaging with activities out of work, that their employers could use but they
are not currently doing so. The author has also found that, if employees’ untapped
skills were used at work, they would feel more motivated, more empowered at work
and would stay at their present company for a longer period of time. The author has
concluded that tapping into hidden skills would also directly impact on the business
and it would increase efficiency.

 Amiri M. and Safariolyaei, N. (2017). Authors have discussed about talent

management among employees. They have explained that the talent management
the hidden talent of employees and emphasized that the management should
focused on the talent of employees for improving and increasing the productivity
and performance of workers.

 Amiri, M. and Chavan, B. (2016). It could be said, however, the computerization

of higher education and higher educational institution changed the way of teaching
as well as learning of students and finding a better solution for identifying the skills
of students. Here also the role of talent management among teachers and students
can play an important role in identifying their hidden talent and skills for changing
the condition.

 K. R. Manjunath and K. Jalaja, (2013). Authors have stated that, what is

important for the organization is not to acquire quality human resources, but it is
important for them to realize optimal value for them which requires them to develop
such strategies to appraise-develop-retain the intellectual resources for creating
long term sustainable competitive positions in the competitive or highly fragmented
market conditions. Acquiring the right talent and sustaining them for the long term
would always ensure them with all the advantages of realizing strategic turnaround
to the operations

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 J. Bersin, (2006). In this study paper author, has discussed the critical issues.
These issues are – i) Talent management requires integration and communication
between existing HR and Research and Development activities. ii) Competency
management, misunderstanding and difficult part of training and HR have become
critical and iii) Vendor claims, there is no complete ‘Talent management software
solution yet. On these issues, the author has discussed critically in the study paper

 Tobias. C. (2007). In the opinion of the author, organizations should aim to hire,
develop and retain motivated capability people, who have the “Can do” (i.e. ability or
capability) and the “Will do” (motivational) factors that relevant to the job. This study
is based on the survey. Through the study, the author has observed that the
greatest cause of job dissatisfaction is the underutilization of management talent. In
the opinion of the author, talent has egoistic needs, which must be met, if they are
to be fulfilled; and this forms the key content of talent management in a high
performing work organizations.

 R. Shukla. (2009). This book pertaining to talent management highlights that,

how organizations can identify and get the most out of high potential people; by
developing, improving and promoting them to important positions. Through this
book author has highlighted on a system for integrating human resources building
blocks and conditions of human resources, which are essential for any
organizations’ development and excellence, also focused on, how to link employee
assessment process to career planning and improvement. In the opinion of the
author, it is fall of simple, efficient, easy to follow methods for assessing, planning
and improving high talented people to meet the organization’s current and future
requirements. The author has further stated that it will helpful for the organizations
to combine their diverse human resources functions into a single, cogent system.

 Rath.T. (2011). In the opinions of authors, integrated talent management is an

approach to building organization and capability and engagement by integrating
talent acquisition; development and deployment across traditional HR silos. Authors
have further opined that this process keeps all the aspects of talent management

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aligned with business objectives and goals. Through this book, authors have
presented strategic and tactical guidelines for training and development
professionals seeking to play key roles in the process

 M. Goldsmith and Louis Carter. (2009). Authors have highlighted up to date

thinking, tools models, instruments and case studies that are important with a view
to identify, lead and manage talent within the organisation. Through the study,
authors have provided a vast amount of provoking ideas, tools, and models for
formulating and implementing talent management strategies. Authors have also
provided the case studies for planning and implementing on effective talent
succession management strategy in the organization.

 J. Smilansky. (2007). He has discussed the systematic and strategic process of

talent management of executives, Author has opined that, the real turning point for
a business is when the management realized that if the managerial population does
not reflect client base and cannot understand the consumer and therefore, they
cannot provide them good service that the client wants to. This book is based on the
interviews of senior HR professionals in 20 leading organizations of UK. The author
has defined that, talent management as an integrated set of corporate initiatives
aimed at improving the caliber, availability, and flexibility utilization of exceptionally
capable (high potential) employees who can have a disproportionate impact on
business performance. The author has concluded that, while most organizations are
now seen talent management as a priority, there is still widespread reluctance to
conduct an objective assessment of senior executive’s capability and makes sure
only the most talented individuals occupy key corporate roles.

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