Bibliography

Competency Mapping:
Book:
Ann D.Lucia & Richard Lepsinger, The Art & Science of Competency Model, Pffiffer , ISBN-0-7879-4602-8
Ganesh Shermon, Competency based HRM, Tata McGraw Hill, ISBN-978-0-07-052804-8
Article:
Competency Mapping, K. Murli Mohan
The Art and Science of Competency, T.V.Rao
Competency Management, Practitioners Guide by R.Palanippan
Competency Mapping-Pre requisite for HR Excellence, Dr.Lovy Sarikal
Competency based HR, 10 Jan 2005, Sudipta, Express Computer
Motivation:
Books:
Anne Bruce , How to Motivate every employee, McGraw Hill , ISBN-0-07-146330-5
John Baldons, Great motivation Secrets of Great leader, McGraw Hill, ISBN-0-07-144774-1
Les50ns, Motivating people, Hardward Business press , ISBN-978-I-4221-3981-3
Gary P Latham, Work motivation, Sage Publication, ISBN-978-0-7619-2018-2
Richard Denny, Motivate to win-how to motivate yourself & others, Kogan page India private limited, ISBN-978-817554-330-0
Herwig W.Kressler, Motivate and Reward, Palgrave Macmillan, ISBN-1-4039-0378-6
Puneet Srivastava, Managing Motivation, Rupa & co, ISBN-978-81-129-10623-0
Dean R.Spitzer, Super Motivation, Prentice Hall of (I) private limited, ISBN-978-81-203-3135-8
Alexander Hiam, Motivating & Rewarding Employees, Adam Media Corporation, ISBN-1-58062-130-9

Retention:
Books:
Stephen Taylor, The employees retention Hand book, Jaico Publishing House, ISBN-978-81-7992-909-4
S.Michel Kravitz Ph.D, Managing Negative People, Viva Books (p) Limited, ISBN-81-7649-590-5
Patrick Forsyth, Developing your Staf, Kogan Page (I) Private Limited, ISBN-978-81-7554-446-8
JenniferA.Careen J.D, HR How to - Employees Retention, CCH Knowledge Point, ISBN-0-8080-0847-1
Sue Browell, Staf Retention in a week, Hodder & Stoughton, ISBN-0-340-849738
Jack J.Phillips & Lisa Edwards, Managing Talent Retention, PFFIFFER, ISBN-978-0-470-37595-2

Website:
http://www.slideshare.net
http://www.scribd.com
www.Authortream.com
www.citehr.com
www.google.com
www.freelibrary.com
www.wikipedia.com
www.Zenithresearch.org.in
http://ijrcm.org.in
http://ijser.org.in

Bibliography
Books:
Example :
Bowersox, Donald.J., (1996), Logical Management Tata McGraw Hill, New Delhi
Document Sources:
Newspapers: New York times / Chirstian Times mentor / National observer
General Interest Magazines : Atlantic monthly/new Yorker
Scholarly Journal
Special interest magazines : Psychology today/ Arizona Highway
IBM SPSS statistics 19 core system user guide.pdf

__________________________________________________________________i

__________________________________________________________________i
i

A STUDY ON COMPETENCY MAPPING AND ITS

EFFECTIVENESS ON MOTIVATION TOWARDS EMPLOYEES
RETENTION

SUBMITTED BY
A.R.GURUPRASAD
(REG No.

UNDER THE GUIDENCE OF

Dr.C.M.Bhaskar Reddy, M.Com, M.B.A, Ph.D
Thesis Submitted for the award of the Degree of
Doctor of Philosophy In Management

Rayalaseema University
Kurnool.

_________________________________________________________________ii
i
CERTIFICATE

This is to certify that, the thesis entitled Study on Competency

Mapping and Its Effectiveness on Motivation towards
Employees Retention is bonafide research work done by Mr.
A.R.Guruprasad for Doctor of Philosophy in Management
submitted to Rayalaseema University , Kurnool, Andhra
Pradesh is a record of original research work carried out by him.
The thesis has not previously formed the basis of the award of
any degree, diploma, associateship or other similar titles

Place:

Date:
(Signature of the
Guide)

_________________________________________________________________iv

DECLRATION

I, A.R.Guruprasad hereby declare that the project titled A

Study on Competency Mapping and Its Effectiveness on
Motivation towards Employees Retention submitted to
Rayalaseema University, Kurnool, Andhra Pradesh for the award of
Degree of Doctor of Philosophy is a record of original work done
by me under the guidance of Dr.C.M.Bhaskar Reddy

M.Com,M.B.A,Ph.D., is a Director , CMR college of Management,

Bangalore.

Signature of the Candidate

__________________________________________________________________
v

ACKNOWLEDGEMENT

I express my foremost thanks to Almighty for his blessings in

helping me to complete my thesis successfully.
I express my deep sense of gratitude to all the faculty of
Rayalaseema University, Kurnool for their motivation. I
express my sincere thanks to my guide Dr.Bhaskar Reddy for
his guidance and for his extremely useful and effective
suggestions.
I have immense pleasure in thanking all the staffs, who have
given me their help and source of great support throughout my
project.
I owe my gratitude to all the respondents who have given me the
necessary information for carrying out my project successfully.
Last but not the least I would like to thank my parents, wife and
daughters who were the source of encouragement and support for
the successful completion of my project.

_________________________________________________________________vi

Publication based on this thesis

International Journal Publication

Indian Journal Publication

_________________________________________________________________vi
i

Abstract

________________________________________________________________viii

Keywords

_________________________________________________________________ix

Abbreviation and details

Abbreviation
TCS

Detail
Tata Consultancy Services

__________________________________________________________________
x

CONTENTS

Chapt
er No

Title of the Chapter

Page
No

1.

Presentation of the Study

2.

Introduction

3.

Role of IT in Economic Development

4.

Competency
Mapping in HRM

5.

Motivational
Techniques

and

Competency

Theories

and

6.

Employees
Organization

Retention

of

an

7.

Conceptual Frame work

7.

Profile of Select IT Companies

8.

Survey, Analysis & Interpretation

9.

Summary of Findings, Suggestions

and Conclusion

10.

Bibliography

11.

Annexure - Questionnaire

_________________________________________________________________xi

List of Tables

_________________________________________________________________x
ii

List of Figures

PRESENTATION OF THE STUDY

1. PRESENTATION OF THE STUDY.

The first chapter is an introduction to the research topic. The extensive survey of Literature at national and
international is examined. Need of the study , objective of research work , limitation involved therein , methodology
of study , hypothesis are formed. The role of IT companies in growth of Indian Economy is covered in second
chapter in order to have meaningful base for the research work. This chapter covers companies before and after
economic reform, IT companies contribution towards economic development.

INTRODUCTION
2.1

About Information Technology Industry.

Indian Software and services industry strong value proposition-existence of large English speaking , technically
qualified manpower, competitive billing high productivity gains and scalability had helped the country emerge as a
key IT services outsourcing destination. The situation further continues to hold India in good stead. These intrinsic
strength and advantages gave India a leg up in the burgeoning ITES-BPO space as well taking it beyond the realm of
IT services. Export comprises of traditional and non traditional goods that fetch buoyant sources of Foreign
Exchange to any country like India. The study reveals that non traditional exports constitutes over 90% of the total
exports. Needless to say, non traditional trade consists of Gem and Jewelry, leather, consultancy services, software,
IT services, setting of joint venture abroad, engineering and capital goods etc.,
Information Technology is one of the most important industries in the Indian economy .The IT industry of India has
registered huge growth in recent years. Indian IT Industry grew from $150 Million US in 1990-91 to a whopping $50
billion US in 2006-07. In the last 10 Years the Information Technology industry in India has grown, at an average rate
of 30% annually. The liberation of Indian economy in the early 90s has played a major role in the growth of the IT
industry in India. Deregulation policies adopted by the Government of India have led to substantial domestic
investment and inflow of foreign capital to the Industry. In 1970, high import duties has forced IBM to leave India.
However, after the early 90s, many multinational IT companies including IBM have set up their operations in India.
During the 10 year period 1992-2002 the Indian software industry grew at double the rate of the US software
industry. Microsoft became a pioneer, in the field of software. The traditional company having its institution and its
associates all over the world has been making splendid performance. In consequence the company with talented
human resources could post profit perpetuatingly for decade together. TCS, Infy, Wipro have who made similar
attempts for internationalization of their products (ie) software services.

2.2

Growth Of IT Industry in India

The country is at an important juncture in the industry, having completed the transition from an agrarian economy
to a fully-fledged first world economy, operating at the loading edge of contemporary technology. A key element in
taking the country forward and maintaining its growth momentum will be the provision of a highly skilled and
competent global workforce. An apt IT and management skills in fact, in assuming an ever greater importance in
the current day environment where the IT sector is emerging as a major drive of the Indian economy. IT manpower
development today, is not only crucial for sustaining the growth of the Indian economy, but also important for
maintaining the countries edge in the global market where competition is on the rise. The emphasis on quality is
just as predominant in the ITES-BPO industry. Most of the Indian ITES-BPO companies adhere to world class quality
standards; have a dedicated quality department responsible for developing and deploying the organizations quality
policies. They undertake periodic reviews of their quality processes which are conducted by their own senior
management team as well as members from the client organizations.
Today majority of the companies in India have already aligned their internal processes and practices to international
standards such as ISO, CMM, Six Sigma etc., which have helped establish India as a credible sourcing destination.
As of December 2008, over 500 Indian companies had acquired quality certification with 112 companies certified at
SEI-CMM Level -5 higher than any other country in the world. The growth of IT industry in India can also be
attributed to the following:
Abundant availability of skilled Manpower
India is the second largest populated country in the world before 1991 population explosion was considered to be
bane for the country. In the wake of globalization, the population explosion is treated as a major strength of the
country as it prosper by training the human resources. APJ Abdul Kalam, the then President of India admits that
India has rich potential due to abundant manpower. Needless to say, manpower comprises of unskilled, semi skilled
and skilled. IT industry having the state of art training institute imparts proper knowledge and skill, Infosys
Technologies Ltd has carved out Global Training centre with a total investment of Rs. 360 crores. A heritage building
comprises of 7300 rooms , could accommodate human resources from different parts of the world for imparting
Knowledge and skills in IT industry.
Reforms in the Telecommunication Sector
The turnover of the Indian Telecom sector has touched US$15 billion in 2008, thanks reforms made by
Telecommunication Regulatory Authority of India (TRAI) and corporatizing of Bharat Sanchar Nigam Ltd (BSNL) to
facilitate the operations of IT industry. The growth in telecom market is observed from 1996-97 with the influx of
many private operations entering the market showing 20% growth annually. Some of the major reforms are opening
of International long distance, national long distance and basic telephone for free competition. Further internet
service providers (ISPs) were granted licenses freely and have been allowed to setup their own international
gateways and submarine cable landing stations. Revenue sharing and Internet telephony have added their
contribution to the significant growth of IT sector.
Reduction in import duties on Software and Hardware product
In an endeavor to setup software and hardware product development the government announces various packages
to ensure the cost of effectiveness. India imports components and accessories of software and hardware
development from other countries such as USA, UK, Germany, China, Japan and south-east nations. The ministry of
commerce and Industry recommends to the Ministry of Finance to reduce import duties on such products mainly for
promotion of software and Hardware in India.

Cost advantage due to adequate supply of skilled human resources

IT and ITES have gained momentum in India due to cost of advantage. MNCs operate in the field of IT in our
country to reap the benefits of cost advantage as envisaged by Ricardo. In the given situation US and India are
considered to be strong countries. Not withstanding India is considered to be the strongest as the human resources
are available in plenty. Further this is proved by the application of opportunity cost. Some of the major companies in
the IT industry in India are- Today the software industry has become the backbone of companies around the world.
With technology advancing in leaps and bounds, there is no stopping of IT professionals from around the world, to
bridge the gap between huge untapped markets and its customers as well as creating an opportunity for
innovation. The companies that dominate the software industry are there which took out for these opportunities and
provide instant solution. The Indian software industry has arrived and the companies that are dominating the
industry based on their turnover.
Table S.N

Name of the Company

Sales in Million Rs.

TCS

97,272

Wipro Limited

82,330

Infosys Technologies Ltd

71, 292

NIIT

3984

Source :
The constant encouragement accorded by government of India from time to time has given a big push to IT and
ITES. The cost advantage in terms of human resources could be a motive behind MNCs operating in IT and ITES.
The economy which was at the verge of collapses in
1989-90 could see a turn around owing to magnificent
growth in IT and ITES. The IT sector could bring in metamorphosis in the economy.

2.3

Review of Literature

The study for the Purpose of Gaining in-depth insight into the employee competency mapping in organizations has
reviewed global leading articles on the topic. It has also identified research gap and that justified the present
research program. What is clear from all type of review is that you should examine what has been written
previously and learn from the earlier work in the area. Here are the snapshot of the literature review :
Competency :
Klemp, 1980- A job competency is an underling characteristic of a persons behavior , which results in an effective
display of superior performance in a job
Green Competency is a description of measurable work habits and personal skills used to achieve a work
objective .
Prahlad and Hamel, 1990 As job becomes more knowledge and service focused, organizations need to be more
adaptable and to compete on the basis of their core competencies and skills.
SENGE 1990 Knowledge, skills, capabilities and learning become an important part of organizations ability to
compete and are at the heart of an organization adaptability and ability to learn
Pfeffer, 1981 power in terms of McClellands model can be seen as the ability to overcome resistance in
achieving an objective or goal.
Daniels, 1989 Many performance problem may be created, not by what we do, but by what we dont do.
L.M.Spencer (competency at Work) once a few jobs have been studied and people assessed, a computer is needed
to keep track of job competency requirements employee competencies and job person match data.
Honey (1997:33) - Provided that competencies are specific, unambiguous and written down, they are useful in
helping every one know what is expected of their performance.
Competency Mapping:
Nedunchezine and Prabhakar Competency mapping is the process of identifying key competencies for a particular
position in an organization and then using it for job evaluation , recruitment , training and development and in
identifying training needs.
Dhar Competency mapping is the process of identifying key competencies for an organizationand the jobs and
functions within it.

Briscoe, 1996 Competency models can play a vital role in every process of HRM system.
Drucker, 1954 Performance management owes its origins to management by Objectives(MBO)
Hendry et al , (1997:20) We believe that the approach you take should depend on your organization , its culture, its
relationship with employees and the type job they do.
LM Spencer(Competency at work) Once a few jobs have been studied and people assessed, a computer is needed
to keep track of job competency requirements employee competencies & job-person match data.
Cook,1990 Good employees are twice as valuable in terms of contribution as poor employees , then putting time
and resources into selection becomes crucial.
Mayfield and Carlson ,1966 Most people in the country believe that they are good drivers, good lovers and good
interviewer/ one of the principle finding of a study on selection, interviewing was that performance improved with
training.
Briscoe , 1996 Competency models can play a vital role in every process of HRM system.

Motivation:
Roberts(1997:1) Neither praise nor pay can motivate people to perform beyond their means , and best training
programme cannot make a silk purse of a sows ear.
Researcher Alfa Khan (1993) Published by Rewards Strongly that managers need to understand intrinsic
motivation .The Three Cs of motivation are Collaboration, Content and Choice.
Rebecca Boyle - Empire America Federal Saving Bank Any time you make people feel better about themselves , you
are building strong motivation.
Jack Welch General Electric No matter how many ideas we try, it all comes back to people their ideas, their
Motivation their motivation their passion to win.
Martin Van Mesdag To motivate others is the most important of management tasks. It comprises the abilities to
communicate , to set an example, to challenge, encourage, to obtain feedback, to delegate, to inform and to
provide just reward.
Dan Eckert With my 30 years of personal management experience it has become clear that people have to
motivate themselves.
Retention:
Ann Vincola Career Journal Dec10,2001 Balancing work and play prompts employees to stay.
Dawn Schauble Chicago based Mercer Consultant Offering both an attractive benefit package and an appealing
work environment are essential to attracting and retaining the right employee.
Philip Brewer president of keep employees inc quoted in employee recruitment & retention march 2002 The key
reason perhaps the number one reason the people stay with current employer is the relationship they have with
their direct manager.
Elton said money is not a motivator for employees and is not memorable. He added that when employees are
valued that they are less likely to ask about pay.
Lillian Eby Ph.D an assistant Professor of psychology at the university of Georgia Mentoring is a relatively
inexpensive method of training and development and its promotes succession planning both of which are important
for retention.
John Farrell, Senior director of client strategy for Carlson Marketing group Recognition is like oxygen to
employees ; They cannot survive without it.
Review of Literature.
1. Insofar as employees commitment exists, it is to the boss, to the team, and to the project. That is different from
loyalty, which previously was to the name on the building or to the brand. Therefore any retention strategy must be
driven by individual managers and supervisors, not just the folks in human resources.
-President - AON consulting
2. Todays network demands to be treated as an individual and not as a member. Unfortunately, though
management is often good at giving Kudos to other managers an to those in the important an visible professional
ranks the heros and the champions it is often woefully inept when it comes to saluting the troops . Respect
for the individuals and recognition of the contribution that a person is able to make within the confines of his job are
of paramount importance in keeping the best.
- Martin John, Yete
Keeping the best and other thought on building a super competitive work force

3. The leader need to be in touch with the employees and communicates with them on daily basis.
- Donald Peterson Former CEO, Ford Motor Company
4. The moral is simple; If you satisfy their deep wants, employees become more cognitively and emotionally
engaged and will perform better. And this is so across national and corporate culture, in all organizations, regardless
of rates of pay because the underlying needs are universal.
- James K. Harter
Taking feedback to the Bottom line Gallup Management Journal , Spring 2001
5.The way to attract and retain good people is to give them interesting work to do, interesting people to do it with,
and treat them like the responsible adult they are.
- Charles A. OReilly III and Jeffery Preffer
6. Employees retention is Effective employee retention is a systematic effort by employers to create and foster an
environment that encourages current employees to remain employed by having policies and practices in place that
address their divers needs. Also of concern are the cost of the employee turnover. Replacement cost usually are 2.5
times the salary of the individual. The costs associated with turnover may include lost customers, business and
damaged morale. In addition there are the hard costs of time spent in screening, verifying credentials, references,
interviewing hiring, and training the new employee just to get back to where you stand.
- Get Les Mckeown

2.4

Statement of Problem

Employee competency mapping is about assessing the value of human capital and its development. Care need to
be taken to ensure the involvement of entire organization. The need to map and monitor the competence is
perceived by most organizations as a tool to add value to their key resource areas like motivation and retention of
employees. To cater to this need the research program also discusses comprehensive models for competency
mapping. A business might possess extremely capable human resource but they might not work on the position
that suits them. This is where competency mapping and the tools like motivation and retention of employees to
help HR experts. Competencies have attracted much attention in MNCs, and there is growing interest in
competencies. Interest in using competencies as a foundation for human resource management programmes stems
from continued downsizing in organizations, declining profit margin and growing acceptance of motivationally-based
research.
Properly implemented, competency management led to improved workforce retention, performance, opportunities,
motivation and commitment. High attrition is big challenge faced by industry. Most IT companies suffer high
attrition problem. Engaged and satisfied employees are more likely to stay with their companies. Identifying
motivation and satisfaction factor for IT consultants high attrition , is therefore of great importance in increasing
employees retention. The purpose of the research is to investigate the reason for the employee leaving their
companies and to minimize the attrition rate by giving training on competencies and motivate the employees.
Therefore, manager at all cost must minimize employees attrition. Therefore, there is a need to develop
competency model, competency identification, executing the mapping and put into practice of competencies
mapped. There is no trick to motivating others. It requires a clear, unbiased understanding of the situation at hand,
deep insight into the vagaries of human nature at both individual and the group levels, the establishment of
appropriate and reasonable expectation and goals and the construction of a balanced set of tangible and intangible
incentives.

2.5

Need of the study

Competency refers to the intellectual , managerial, Social and emotional competency. Many Organizations in India
and abroad are channeling their efforts to mapping competencies implementing assessment and development
centre. Normally, the purpose of analyzing training needs, is to uncover the gap that exists between the present

competency of the enterprise and the competency needed to reach strategic goals in the future. The need of the
study to understand how the competency map prepared for employees in the organization, help to motivate them
and minimize attrition rate.

2.6

Scope of study

The research focuses upon competency mapping and its effectiveness on non managerial and managerial cadre of
employees working in select IT companies in the heritage city. There are more than 25 IT companies established in
Mysore. The industrial policy could attract lot of MNCs and domestic companies to operate in Mysore as well

2.7

Objective of the study

To identify company specific competencies in select organization To know how competencies are identified,
Defined, Assessed , Monitored and Measured in select organization. To observe whether there is relation between
competency mapping ,motivation and Retention of employees. To highlight the advantage and disadvantages of
competency mapping. To evaluate the performance of employees in IT Industry

2.8

Research Methodology

The Research depends on primary data and secondary data. About, 6000 employees work in IT sector in Mysore
District. In IT Companies generally, five cadres of employees. They are Software Engineers/Developers, Team Leads,
Project Head/Managers, executives and others. These groups put their effort to steer IT companies towards greater
productivity. As already stated the researcher has picked up 5 Major IT Companies of 25 companies in Mysore city.
The study was conducted in two phases , Pilot study and main study. A pilot study was conducted initially to
identify the significance of the study. During the study, a total of 5 employees of each company were randomly
selected and interviewed personally by the researcher. This is mainly done in order to have an insight about the
plight of the employees because of undue stress in the select IT companies. The researchers has adopted
stratification of different cadres of employees in the sampling Unit. Out of the total 1635 employees the researcher
elicited responses from 410 employees. The % of Sampling size under each stratum varied from a minimum of 25%
to 40%.

2.9

Hypothesis

Testing of Hypothesis The following Hypothesis was formulated and tested.

Ho : There is no significant difference wit job satisfaction level between managers who have participated in more
number of Training Programmes than others.
Hi : There is significant differences in the job satisfaction level between managers who have participated in more
number of Training Programmes than others.
Manager
Mean
SD
Mean Diff
SD SE tvalue pvalue
High Job Satisfaction
3.32
0.75
2.15
1.07 0.08 26.2
0.0000
Moderate Satisfaction
1.17
0.62
The result of t-test rejects the null hypothesis and accepts the research Hypothesis as the p-value associated with
mean difference between the number training programmes attended by manager with high job satisfaction and that
of managers with moderate job satisfaction is < 0.01 The study found that there is an impact of Training on job
satisfaction. Higher the number of Training Programme attended by Manager would be the job satisfaction level.
Varying concept of theory inference and Guess

2.10

Limitations:

IT industry operates all over the country but the study is confined to the select companies of Mysore. The
responses from the target group does not reflect on the response of this universe. There may be a slight variation in
the data and the statistical figure published in different secondary sources. The Variation in the study may be due to
the impact of global economic crisis. The study is restricted to period 2006-2009.Time constraints of employees
sample size to 100. Few employees are not responded due to busy schedule.

2.11

Presentation of study:

The first chapter is an introduction to the research topic. The extensive survey of Literature at national and
international is examined. Need of the study , objective of research work , limitation involved therein , methodology
of study , hypothesis are formed. The role of IT companies in growth of Indian Economy is covered in second
chapter in order to have meaningful base for the research work. This chapter covers companies before and after
economic reform, IT companies contribution towards economic development.

ROLE OF INFORMATION TECHNOLOGY IN ECONOMIC

DEVELOPMENT
3.1

Introduction

India being developing country, has scarcity of financial resources since independence. The country agrarian
economy has 70 % of people who are living in rural India. World war and Indo pak war have, degraded the natural
resources of country as such, the country has accorded agriculture sector a priority status. Frequent failure of
monsoon become a threat for the people in rural India. Unemployment and underemployment, dismal standard of
living low per capita income (PCI) at the national level abysmally low rate of the GDP etc., have been common
factors India through 5 Year plans have determined to undertake developmental activities mainly to promote the
growth rate for that purpose India had to embrace the dictum-industrialize or perish. In consonance, small and
medium enterprise, and large scale industries had to gain momentum. The Government has given industrial sector
through various promotional measures to generate employment opportunities, besides informing the standard of
living of people with modest economic growth. It may be recalled that, India had to have agriculture or perish as a
dictum during the five year plan.
In an endeavor to step up the quality of production, the government had to import capital goods and technical
know how. This compelled India to mobilize foreign exchange to pay for import bill. The disproportionate rise in
import bill had serious strain on the balance of payment as the foreign exchange reserve went on depleting. In
order to meet the import bill commitment, India was forced to resort to communal borrowing from the international
monitory fund and international board for reconstruction and development. Needless to state that, external debt at
at commercial rate become threat to the existence of the country. During 1981-1982 the import and export of the
country was Rs 21,000/- crore and 12,500/- crore respectively. While the external debt of the country stood Rs
31,00/- crore during 1990-91 the import and the export of the country was Rs 49,000/- crores and Rs 32,500 crores .
While the external debt has gone unprececedently Rs 1,12,00/- crores. The burgeoning external debt was inevitable
to clear the internet accumulated on the external debt. The export was not driven as expected, as the country had
to take care of traditional exports. Further tariff and non tariff barriers both in India and overseas have crippled the
growth of exports EXIM policies adopted from 1985-1988 could provide stimulus package to promote non traditional
exports such as petroleum, Leather, Products, Gems, and Jewellary Plastic, Chemical, Hardware and Software India
had to focus on the non trade exports of goods as the demand for such items gained momentum at the global level.
Boom in Information Technology, Information enabled Services (ITES) opened up avenues for employment. Further
the emergence regional blocks such as G-8, G-20, G-72, SAARC, Common wealth countries, NAFTA and European
unions have made provisions for interdependencies, to achieve growth at not only regional level but also at the
country level. Formation of world trade organization (WTO) has accorded. Most favored nation to every member
country such as , free trade regime was established besides providing new vista for the overall development of the
country. As has already been stated , the export of traditional goods were sluggish; as such every country had to

focus on non traditional products. In an endoveour to boost foreign exchange reserve the country had to shift to non
traditional goods such as software, Hardware and such other IT integrated services. The researcher has made
attempt to outline the country in two stages viz status of economic development up to 1990-91 and the
development of the country in globalized scenario.

3.2

IT-INDUSTRY AN OVERVIEW.

Information Technology (IT) is an industry through which the use of computers and other supporting equipment
such as numerical control machine barcode readers, scanners and internet help in the spread of knowledge and
provides solution to pertinent problems. The term information technology includes, computers and communication
technology along with associated software. Information Technology for some time was used as synonym to
computers.But, with the rapid advancement in various information delivery systems such as Radio,TV, Telephone,
Newspapers, Information Technology refers to, the entire gamut of media and devices used to transmit and process
information for use by various target groups in the society. IT has therefore, been rightly termed as Information and
Communication revolution.
Emergence Of Knowledge Economy
With advancement of Information technology information is being regarded as the fourth factor of production, along
with land, labour, and capital. Information , has, therefore, become an important and distinct in production. Thus,
along with three sector model of primary, secondary and distinct input in production. Thus, along with three sector
model of primary, secondary and tertiary industries, a fourth sector information related industry has emerged.
Information is therefore used as a raw material for knowledge just as iron is a raw material for machinery. Thus,
according to low (2000) , The activities of generating, processing, transmitting, disseminating, storing, achieving
and retrieving information constitute information industry. The information industry has thus, pervaded in wide
range of industries viz manufacturing, education, entertainment, defense, trade and communication. In the
knowledge economy, the raw material that matters is, intellectual rather than physical. Low states: The know.ledge
economy implies shift in the geographical centre from raw material and capital equipment to information and
Knowledge, especially in education and research indent and man made brain industries. The knowledge economy
depicts the automation of labour intensive manufacturing and service activities, as well as growth in new service
industries such as health care, distance education, software production and multimedia entertainment. The

pervasive influence of information technology is so strong that there is no sphere of human life in which it is not
able to make a niche for itself. Information technology has integrated the world by the use of Internet. It is now
possible to download information from any part of the world after introduction of world wide web (www).Internet
economy hs become very powerful in USA. Internet economy accounted for US$270 billion in 1998 as against
energy (US$223 Billion) and automobile (US$350 Billion). The new knowledge economy is thus creating high quality
employment. It is reshaping the job market . Many of the jobs did not exist prior to 1994-95.
IT IN INDIA AS VIEWED IN WORLD MARKET.
Information Technology is of resent origin, but spreading fast in India. India has a long way to go before it can catch
up with the developed countries. Table-1 provides some information regarding the use of various instruments of
information technology. Take for instance, TV sets, India accounted for 320sets per 1000 population in 2006 as
against 990 in Japan, 980 in USA and Russian Federation and 890 in China. Telephone (Mainlines) accounted for 45
per 1000 in India, as against 570 in USA, 550 in UK, 280 in Russian Federation and 280 in china. There is no doubt
that kept people prefer mobile phones I place of Fixed lines phones, but even then , India is way behind although it
has progressed sharply during last 4 Years. Personal computer per 1000 persons accounted for only 16 in India in
2006 as against 762 in USA as against 762 in USA, 876 in Canada, 676 in Japan and 43 in china.

Table 2.2.1
Telecommunication and Information status in selected countries (2006) per 1000 persons.
Countr
Daily
Televisio
Telepho
Mobile
Personal
y
News Paper
n Sets
ne Main
Telephones
Computer
Lines

Internet
Users

USA

194

990

570

780

762

695

UK

292

980

550

1150

758

554

France

431

940

360

1080

535

491

Japan

551

990

110

780

676

685

China

74

890

280

350

43

104

India

73

320

45

150

16

55

Source : Compiled from world Bank, world development Indicator (2008)

Regarding Internet , a principal agency for acquiring and disseminating information, India had 55 Internet users per
1000 persons in In other words although information Technology has made roads in India , it has not been accessed
by the masses and is thus the preserve of only the rich and the elite in Indian society.

MAJOR ISSUES IN INFORMATION TECHNOLOGY

It is now being increasingly felt that Information Technology is a major facilitator, and a catalyst for accelerating
growth of the economy. It is therefore necessary to remove impediments on the path of growth of IT Industry,
business and services. The working group set by the Ministry of Information Technology has identified four
categories of Issue:
Infrastructure and Services, Electronic Governance, Education and Mass Campaign for IT awareness.
INFRASRTUCTURE SERVICES

The development of various forms of information delivery systems such as TV, Radio, Newspapers, Telephones,
Personal Computers and Internet into one unified system, it is very desirable to improve the reach of the IT services
to the common man in India. Nearly 26 percent of the population lives below poverty line, 20 percent belong to
higher and richer classes and 40 percent to the middle class. The government in the first instance aim at 400
million strong middle class on the one hand , which provides a very large potential market for IT products and
services, which can be , in the near future enabled to make use of the benefits of IT in its day to day lives. On the
other hand, for 26 percent of the people living below the poverty line, government should initiate steps, so that
they have to move from above poverty line.
For providing IT information and services to the common man the working group setup by the Ministry of
Information Technology in May 2000 was of the view that the three conditions are necessary:
a. Availability and affordability of access devices
b. Establishment of communication and network infrastructure including telecommunication network, Internet
enabled cable TV network and
c. Development of IT Services.
ELECTRONIC GOVERANCE
Government and its numerous agencies are the major services provides in the country. The use of Information
Technology especially computers is being encouraged in various ministries, department of the central government ,
State government, District Administration, Municipal Services and at Block/ Panchayat Level. This is a welcome
development as E-Governance has reduced the paper work and people of getting instant and accurate information.
But, the working group has drawn attention to a major set back in effort. Most of the application of IT in government
services, has been confined to back office computerization. Consequently, the improvement in the quality of service
has not taken place in a sufficient measure. This approach should be replaced by front office applications as against
back office use. This will develop enough pressure on government agencies, to improve and sustain IT services, so
as to raise the level of public satisfaction. This aspect of e-governance need to be altered and strengthened. A
gradual change is taking place. This pace is in urban areas is much faster than in rural areas. Presently, the
government sector is the largest consumer of IT services in India. State government and central government have
initiated the process of computerization particular to mention to be made of the state government of Karnataka,
Andhra Pradesh and Tamilnadu for making vigorous effort to computerize Government Departments, with a view to
offer better services to the people. Income tax and other departments of the central government have also taken
steps , to computerize their operations.
EDUCATION
IT education issues may be divided into two categories. IT education & Training and Use of IT for education and
literacy
IT education requires the training of human beings in various skills associated with wide range of products
processes. Since, quite a good number of high quality jobs exists in the IT sector, it is very much necessary to train
the required number of personnel, to take advantage of these jobs opportunities. Two kinds of trained personnel are
needed (1) for Hardware (2) for software. The hardware training, the country needs development of Polytechnics
and Engineering colleges, to impart education and training and for software the country needs Educational
Institutions, which can impart training n operations of computers to suit the needs of different vocation, like
publishing of books, journals and news paper, accounting packages for preparing accounting books. It is useful for
banks for conducting banking operations , business, for railways in reservation and other associated jobs. The major
problem with the training in IT is the high costs, whether in polytechnic, or in Engineering colleges or in institutions
such as NIIT, APTECH or even in , Universities. Good quality Institutions for IT training charges fees, which the poor
and the lower middle class cannot afford. In India these Institutes charge fees ranging from Rs.20,000/- to Rs.
100,000 for a one year course and thus, they price out the poor and the middle classes. Even meritorious students
belonging to certain group, which do not have an economic standing, cannot have access to these courses. At the
Indivitual level, the access to Internet the chief Instrument of acquiring information and thus converting it into
knowledge, is also beyond the reach of the lower classes in the society. There is, therefore, the painful existence of
Skill and access divides in IT education. This has led to the division of the society in the knowledge economy on
the basis of socio economic classes and the regions rural and urban. Consequently, the inequality in access in IT
education and skills and those who remains excluded. IT professionals are described as skilled knowledge workers.
From a low base of 6800 knowledge professions in 1985-86, their number has shot up to 6.5 lakhs by March 2003.
These professionals get their training in engineering colleges and polytechnics and prestige IIT (Indian Institute of
Technology). A large number of universities have also started computer courses. This has resulted in Sharpe
increase in the output of trained manpower in IT, at the degree and diploma level. Their annual output was of the
order of 1.2 Lakhs in 2002.
CLASIFICATION OF IT INDUSTRY
The Information Technology industry can be broadly divided into four categories.
(1) IT Services (2) Software (3) ITES-BPO (4) Hardware Networking.
IT Services
IT services involve a full range of operations that include consulting. System integration, application services,
enterprise quality services, independent validation services, information management services, infrastructure
services, packaged application services, SOA services, IT outsourcing managed services, hosting services and
support and maintenance.
SOFTWARE

R & D , engineering services addresses the complete value chain, servicing various Industry verticals product
engineering, Manufacturing Process, Plant solution, Lifecycle management

ITES-BPO
Business process outsourcing combines domain expertise, process skills and technology, to deliver world class
process outsourcing for the industries such as Aerospace and automotive, Banking and Capital market,
communication service provider, energy and utilities, Healthcare, Insurance, Life sciences, Manufacturing, media
and entertainment, retail and consumer, packaged goods services, transportation and services.
HARDWARE AND NETWORKING
IT infrastructure and applications, networking and communication, became key priorities for India. Inc, hardware
platform, storage system, tool selection, data modeling, ETL and end user reporting. Fresh approaches are required
to scale the data warehouse and optimize performance.

3.3

ECONOMIC DEVELOPMENT BEFORE 1991.

Indian economy was in deep crisis during 1990-1991. The foreign revenues had plummeted to almost $1 billion;
Inflation to an annual rate of 17%; Fiscal deficit was very high and had become unsustainable; foreign investors and
NRIs h
ad lost confidence in Indian economy. Capital wad flying out of the country and India was close to
defaulting on loans. Further, the gulf crisis imposed a burden of higher import bill, with a declinein exports and
inflow of remittances from west Asia. Along with these bottlenecks , India had many unforeseeable changes that
swept the economics of nation in Western and Eastern Europe South east Asia
, Latin America and in other
countries of the world. To avert the financial crisis, India adopted polices to maintain a stable exchange rate to
lessen exchange rate risk, and increase international confidence and safeguard its foreign currency revenues. India
put forth restrictions in the form of trade barriers and financial restrictions, protectionist policies, particularly
restrictions on import of goods and services. Prior to globalization the external debt amounted to Rs 80,135 Crores
which is 22% of GDP. Due to the deteriorating conditions and uncertainties from political and economic.
Consequences of Gulf war, Indias borrowings increased to million US $9045 from US $3291 in 1990.The protective
economy itself has created a lot of barriers for growth. Industrial policy resolution coupled with Exim policy adopted
from time to time has given some freedom to import goods and services. As a part of it was very essential in the
export promotion. In an endeavor to fulfill the requirement of industrial policy resolutions , the government has
liberalized import policies. As a result the import bill has gone disproportionately higher than export. The burgeoned
import bill to compel the country to adjust foreign exchange through various ways such as NRI deposits, tourism,
and external debt. The sluggish of export and burgeoned import could, create a dent on the balance of payment
positions of the country.

Year

Table Export
crores)

1981

7766

14260

-6494

1982

9137

15857

-6719

1983

10169

17093

-6925

1984

11959

18680

-6721

1985

11578

21164

-9586

1986

13315

22669

-9354

.No
1

(In

Import
crores)

(In

Trade
Balance

-82
2
-83
3
-84
4
-85
5
-86
6

-87
7

1987

16396

25693

-9296

1988

20647

34202

-13556

1989

28229

40642

-12413

1990

33153

50086

-16933

-88
8
-89
9
-90
1
0

-91

(Source RBI Publication)

The table 3.3.1 given reflection on the status of foreign trade, concept of export, import and balace trade in 19801990. The export which stood at Rs 7766 crores has been to over Rs. 33153 crores in 1990-91, thereby export to
the extent of Rs. 25,000 crore increase was registered over a perid of one decade. Similarly import was stood at Rs.
14,260 crore in 1981-1982 had gone upto Rs.50,086 crores in 1990-1991. The burgeoned import bill was registered
following the countries policy of liberalizing the import.The Indian exports were not given thrust soon after
independence, but slowly export promotion measures were initiated. But , the raising import bill could deny all the
incentives taken by Government of India , resulting in continuous increase in alance of payment problem.
India Has been suffering from hunger, poverty and diseases. The UNO at its conventions held that the countries
which were confronting with these problems had to be addressing them on top priority. Indis had to have this
problem due to galloping inflation, disproportionate raise in import bill , unemployment problem, low standard of
living, higher rate of below poverty line, negative balance of payment, unproductive subsidy etc.,. The resources in
the coffer walls depleted thereby developmental work came to a complete halt bill end of 1990. India had to
connect huge resources, on primary education, health care sanitary, agriculture and small scale, shelter to
shelterless had to be supported by the Government. Therefore developmental work of the country was at a
standstill . In 1990-91 the treasury of government had deflected to the level equivalent to three weeks import bill.
International financial Institutions like IMF, IDBI and ADB had stammered the country for not initiating the measures
to dismantle the proactive economy, which itself ruins the country. The former PM of the country Sri. Chandrasekar
had to have bitter experience not only with the economic condition of the country but also with the World Bank , to
get tranche loans sanctioned not only to take up developmental work in the country, but also to pay the
disproportionate rise in import bill.

The economic status depicted in the following table shows different parameters
Table -

Indicators

1979-

.No

80

1984
-85

198990

Growth of GDP (%)

-5

5.6

GDP growth by Sector (%)

1. Agricultural & Allied
2. Industry of Manufacturing
3. Services

2.5
4.5
5.6

3.4
6.2
6.7

2.7
6.7
6.7

Inflation rate (WPI Index %)

11.5

5.5

9.1

Current account Balances

As % of GDP

0.03

-2.33

Foreign

7.361

5.95

3.96

exchange

1.12

Reserve(US$ Bn)
6

Exchange Rates (Rs/US $)

10.49

11.8

16.6

22.9

18.9
8.8

8
7

Rate Growth of
(a) Export %
(b) Import %

12.1
34.2

4
14.2
4

Fiscal Deficit as % of GDP

7.4

6.08

7.9

Unemployment Rate

1.9

4.5

1.7

.
(source : RBI data hand book 2008-09)
To contribution to economic growth, GDP of the country, signifies a parameter, to reflect on the productivity. There
are various sectors both priority and non priority, which contributes their might to GDP. Agriculture,, SMEs, Housing,
exports, tourism are considered to be major priority sectors contributing significantly to the economic growth. Many
economic policy makers and analyst held, widely convergent views on the causes on the unprecedented economic
crisis face d by India in 1990-91. The root cause of the crisis could be traced to micro economic mismanagement
throughout the 1980s as reflected in an unsustainability high fiscal deficit, revenue deficit and the monetized
deficit. The central government fiscal deficit alone peaked at 7.9
TABLE -

Year

.No
1

Export
Crores)

(In

Import
Crores)

(In

Trade
Balance

1981

7766

14260

-6494

1982

9137

15857

-6719

1983

10169

17093

-6925

1984

11959

18680

-6721

1985

11578

21164

-9586

1986

13315

22669

-9354

1987

16396

25693

-9296

-82
2
-83
3
-84
4
-85
5
-86
6
-87
7
-88

1988

20647

34202

-13556

1989

28229

40642

-12413

1990

33153

50086

-16933

-89
9
-90
1
0

-91

(Source RBI Publication)

The table 2.3.1 given reflection on the status of foreign trade, concept of export, import and balace trade in 19801990. The export which stood at Rs 7766 crores has been to over Rs. 33153 crores in 1990-91, thereby export to
the extent of Rs. 25,000 crore increase was registered over a perid of one decade. Similarly import was stood at Rs.
14,260 crore in 1981-1982 had gone upto Rs.50,086 crores in 1990-1991. The burgeoned import bill was registered
following the countries policy of liberalizing the import. The Indian exports were not given thrust soon after
independence, but slowly export promotion measures were initiated. But , the raising import bill could deny all the
incentives taken by Government of India , resulting in continuous increase in alance of payment problem.
India Has been sufferin from hunger, poverty and diseases. The UNO at its conventions held that the countries
which were confronting with these problems had to be addressing them on top priority. Indis had to have this
problem due to galloping inflation, disproportionate raise in import bill , unemployment problem, low standard of
living, higher rate of below poverty line, negative balance of payment, unproductive subsidy etc.,. The resources in
the coffer walls depleted thereby developmental work came to a complete halt bill end of 1990. India had to
connect huge resources, on primary education, health care sanitary, agriculture and small scale, shelter to
sheterless had to be supported by the Government.
Therefore developmental work of the country was at a standstill . In 1990-91 the treasury of government had
deflected to the level equivalent to three weeks import bill. International financial Institutions like IMF, IDBI and ADB
had stammered the country for not initiating the measures to dismantle the proactive economy, which itself ruins
the country. The former PM of the country Sri. Chandrasekar had to have bitter experience not only with the
economic condition of the country but also with the World Bank , to get tranche loans sanctioned not only to take
up developmental work in the country, but also to pay the disproportionate rise in import bill.

3.4

INDIAN IT COMPANIES BEFORE GLOBALIZATION

The status of Indian IT industry before globalization was not attractive. India did not see any development in IT till
1991. The period was not convincing due to heavy restriction on import of computer peripherals, high import tax,
strict foreign exchange and regulation act limiting its allocation. A notable turning point in the Indian software and
IT industries policy environment was, when Shri Rajiv Gandhi became PM in 1984. The major policy reforms were to
recognize software as an industry, to invest and make it eligible for incentives as other domestic industries,
reducing import tariffs and announcement of CSDT policy which liberalizes exposures to the latest technologies, to
compete globally and to capture a share of global software exports. In 1986, when all state owned banks were
standardizing banking processes, there came a need for using UNIX over DOS and, which created a puzzle for local
vendors to shift towards UNIX based platforms and made India become Unix Country. Another important event in
Mid 80s was when GEs Chairman Jack Welch visited India in 1986 which lead to GE technology partnership with
India. Till this period, policies were able to remove the barriers in IT industry but not completely. In 1990,
Department of Electronics (DOE) intrduced the concept of software technology park (STPs) in India. STPs were
allowed with base infrastructure , dependable power supply, tax exemption and also given 100% ownership for th
foreign firms. In 1990 development was mainly because of STPs. MRTP act was placed de-facto in 1991 which
allowed unbiased trade practices there after. During this period, India saw dramatic changes in heavy investments
on higher education and booming privately funding engineering colleges which made India ready with. Technical
manpower resources.
South Indian states saw drastic changes in higher education after 1983 where liberalization made amajor impact on
private funded colleges. This created IT clusters to form, in and around Bangalore, Hyderabad, Chennai, New Delhi,
Mumbai and Calcutta. A significant breakthrough factor in IT Industry development was by Y2K. Indians had already

gained expertise in converting mainframes and DOS PCs into UNIX platform. Y2K created a battle ground for Indian
software professions and which prepared to compete and show their talent globally. High investment in higher
education and formation of prestigious engineering colleges, policy reform to allow foreign investment in 1991
enabled for significant growth in development. From just programming and documentation work, India emerged to
implementation, R&D, outsourcing, and diversified itself to hidden depth of IT industry, to become a global hub for
software and IT enabled services
THE MAJOR COMPANIES OPERATING BEFORE 1991
INFOSYS
Infosys was established in1981 by Mr N.R. Narayana Murthy and six engineers in Pune , India with a initial capital of
US$250. Its first client was Data Basics Corporation, in New York. In 1983, it relocated its corporate headquarters in
Bangalore. In 1987 it opened its first international office in Boston, USA. Infosys started expanding its operations
into system integration, application services, architecture services, and enterprise quality services to name a few.
Infosys, Government listed itself Indian stock exchange board in 1992 as Infosys Ltd and went for public issue to
raise capital. In 1992 June, it became Infosys Technologies Limited.
TCS
Tata consultancy services was established in the year 1968 and is a pioneer in the Indian IT Industry. Despite
unfavorable government regulation, like the license Raj, the company succeeded in establishing the Indian IT
Industry. It began as the Tata Computer Centre a division of the Tata group whose main business to provide
computer services to other groups. Mr.F.C.Kohli was first Gr.F.C.Kohli was first General Manager. J.R.D Tata was first
Chairman, followed by Nani Palkhivala. One of the TCS first assignment was, to provide punch card services to a
sister concern Tata Steel (Then Tisco). It later bagged the first software project the Inter Bank Reconciliation system
(IBRS) for central bank India. It also provided bureau services to Unit Trust Of India. Thus becoming one of the first
companies to offer BPO services.
In the early 1970s TCS, started exporting its services. TCS first international order came from Burroughs, one of the
first business computer manufacturers. TCS was assigned to write code for the Burroughs machines, for several US
based clients. This experience also helped TCS bag its first on site project. The institutional group and information
company (IGIC) a data centre for Ten banks, which catered to two million customers in the US, assigned TCS, the
task of maintaining and upgrading its computer system. In 1981, TCS setup Indias first software research and
development centre (TRDDC). The first client-dedicated offshore development centre was set up for Compaq in
1985. In 1989, TCS delivered an electronic depository and trading system called SECOM for SIS Sega Inter Settle,
Switzerland. It was by far, the most complex project undertaken by an Indian IT Company.

3.5

Summary.

The electronic development of the country , largely depends on the support expansion. Agriculture and small scale
industry are also contributing their might to the growth. But, export expansion is conceded to be primary
instrument to economic growth. Indo-pak could ruin the natural resource of the company , therefore shortage of
food products , unemployment , inability on the part of Government to mobilize the required resources to the
development , disproportionate rise in import bill, unproductive expenses, poverty, illiteracy and inadequate
infrastructure are responsible for Indias failure in achieving the expected growth

CHAPTER -4
4.1

COMPETENCY AND COMPETENCY MAPPING IN HRM.

INTRODUCTION.

Ongoing and unrelenting economic, social and technological changes have spurred the need for flexible, skilled
workers who can help their organizations succeed and sustain a competitive advantage. To be relevant within
organizations and indispensable to clients and customers alike, workplace learning and performance professionals
must continually reassess their competencies, update their skills and have the courage to make necessary changes.
Businesses and managing business has and will always be complex. There is no denying the need to perform
through a combination of utilizing predictive or forecasting tools, techniques and methods, yet without trivializing
the need to sustain and drive a motivated high performing workforce. The company need to sustain in a
competitive environment, gave rise to the need to understand and learn to establish the context of competency
mapping.
This report gives an overview of the competency mapping. The report presents the meaning and history of
competency approach in the first section. In the following sections the components and types of competencies have
been covered. Further the report discusses the meaning of competency mapping and also defines the competency
map. The section that follows discusses the main advantages and disadvantages of competency mapping. The role
of competencies in an organization as a vital tool for recruitment, selection and retention and the areas of
application are discussed in the trailing section. The next section analyses how competency frameworks can be
designed developed and implemented. It also discusses how to develop customized competency models based on
the management philosophy, customer needs, and existing processes of the organization. The report also reveals
the results of Industrial visits to Ambuja Cement Ltd. and Ready Concrete Mix Ltd. In this section the procedures
followed by the respective organizations have been discussed and the stage of implementation of competency
mapping has been analyzed and presented for both the organizations.

4.2

COMPETENCY.

A competency can be defined as a specific, identifiable, definable, and measurable knowledge, skill, ability, and/or
other deployment-related characteristic (e.g., attitude, behavior, physical ability) which a human resource may
possess and which is necessary for, or material to, the performance of an activity within a specific business context
4.2.1 HISTORICAL DEVELOPMENT.
The competency approach to human resources management is not new. The early Romans practiced a form of
competency profiling in an attempts to detail the attributes of a good Roman soldier. The introduction of
company based approaches was realized around 1970, and their development since then has been rapid. The
distinguished Harvard psychologist David McClelland is credited with introducing the idea of competency into
the human resource literature, in his efforts to assist the United states Information agency in improving its selection
process. The latter argued that traditional intelligence tests, as well as proxies such as scholastic grades, failed to
predict job performance.
According to Lyle M.Spencer and Signe M.Spencer (Spencer and Spencer)
Competency is an underlying
characteristic of an individual that is casually related to criterion-referenced effective and/or superior performance
in a job or situation.
According to Green competency is a description of measurable work habits and personal skills used to achieve a
work objective
According to Mirabile Competency is knowledge, Skill, ability, or characteristic associated with high performance
on a job.
According to Hogg Competencies are the characteristic of a manager that lead to the demonstration of skills and
abilities, which results in effective performance within an occupational area. Competencies also embodies the
capacity to transfer skills and abilities from one area to other. Throughout the years, competency based
approaches have proven a critical tool in many organizational functions such as workforce and succession planning,
performance appraisal, etc.
4.2.2
CHARACTERISTIC OF COMPETENCY.
There are five types of competency characteristic motivates, traits, self-concept, knowledge and skills.
Motives:
Things a person constantly thinks about or wants, which results in actions.
Traits:
Physical Characteristics and consistent responses to situations or information.
Self-Concept:
A person attitude, values, or self image.
Knowledge:
Information that a person has in specific content areas.
Skills:
The ability to perform a certain mental or physical Task.
4.2.3
TYPES OF COMPETENCY.
Universal: These competencies emphasize that all the employees of an organization must reflect the companies
values, cultures, and business imperatives. Transferable: These competencies include skills and abilities needed to
perform several roles in varying degrees of importance and mastery, e.g., leadership and managerial skills.
Unique: These competencies refer to specialized know-how or abilities required within a specific role or job.

4.2.3

COMPETENCE VERSES COMPETENCY.

S
Competence
.No
1
.

Competency

Means the ability to perform a

Means Behavioral competencies

job
2

Skill
and
standard
Performance reached

of

The behavior by which the competence

has been achieved

Skill based

Behavior based

Refers to aptitude

Refers to attitude.

4.3

COMPETANCY MAPPING.

4.3.1
MEANING AND DEFINITION OF COMPETENCY MAPPING.
Competency mapping is a process of identifying key competencies for an organization and/or a job and
incorporating those competencies through the various processes (i.e. Job evaluation, Training, Recruitment, career
and succession planning) of the organization.
According to Nedunchezhian and Prabhakar, Competency mapping is the process of identifying key
competencies for a particular position in an organization and then using it for job evaluation, recruitment, training
and development which results in talent induction, management development appraisal, and in identifying training
needs. According to Dhar Competency mapping is a process of identifying key competencies of an organization
and the jobs and functions within it. According to Garrette Competency mapping is a process an individual uses
to identify and describe competencies that are the most critical to success in a work situation or work rule
4.3.2
DESIGN OF COMPETENCY MAPPING.
An organizations competency mapping process is designed to consistently measure and assesses individual and
group performance as it relates to the expectations of the organization and group performance and its customers.
Designing competency mapping includes the following:
Map Competencies: Map skills, personal attributes, and training for a given job and specify the required
performance level against that. Rank order, finalize, validate, and benchmark skills and attributes. This will act as a
checklist for subsequent performance planning of employees. Identify Competency: Conduct competency test
(psychometric tools and 360-degree approach) at the time of recruitment of new employees and use skill matrix
audit for existing employees. Analyze Competency Gap: Measure current performance level against standard or
desired performance level and note down the gap. Decide: If current performance is more than or equal to the
required performance level, then select the candidate or reward the employee concerned. If current performance is
less than required performance level, then reject the candidate or desire appropriate training and development
program for the employee concerned. Last step is to lay-down a proposed performance level and benchmark.
4.3.3
METHODS OF COMPETENCY MAPPING.
Competency mapping is necessary at an individual and organizational level. At the individual level, competency
mapping spells-out the performance level required to be exhibited by an individual in order to achieve job goals
objectives successfully, where it is the basis of performance management system for achieving organization-wide
success in human performance. Therefore, competency mapping holds the key to success of performance
management in any organization. There are various methods for competency mapping as explained below:
Past Performance Based Method : This approach uses Behavioral event interview (BEI). It is an adaptation of
critical incident interview. This method uses Thematic Apperception Test (TAT) in probing data about individual
personality and cognitive styles of thinking , feeling etc., This is an interview technique based on the premise that
the best predictor of future behavior is past behavior. Steps followed in this method are:
Identify the position to be mapped. Identifying the outstanding performers, and below average, or average
performers. Interview them by using BEI. Generating the list of competencies needed (from outstanding performers)
and not needed
(from below average or average performers). Job-Focused Method : Job-focused
approach/method has the task, role, or job profile of the incumbent as the central point. The starting point of this
method makes use of position information questionnaire, which gathers information on the incumbents position.
This method includes; understand the purpose of the job. Ask the incumbent to list down the jobs major activities

and accountabilities. Map each accountability or major work. ValueBased Method: This method uses normative,
cultural, and tadiional values of the organization to construct competencies. It ranges from a very careful and
structured dialogue process involving top leadership, to simple pronouncements made by the CEO or HR Head on
the competency by HR group
4.2.4
MODEL FOR COMPETENCY MAPPING.
There are three models in mapping the competencies described as follows:
One-Size-Fits-All competency Model: This model uses the data obtained from existing job description and job
analysis. The data pertaining to class of jobs, e.g. civil structural engineers/sales representatives will be
consolidated and key features will be identified to convert them into competency traits. The general features like
organizational mission, objectives and culture related competence would be added to build a competency model for
a civil structural engineer/ sales representatives likewise. Multiple job competency models: There are three
steps in this. In the First Step, competencies required for organizational function will be identified. In the Second
Step, these competencies will be classified into technical, Social, marketing, management, finance and general. In
the Third step, combination of competencies will be grouped to draw a particular role like finance manager,
technical manager, quality manager likewise. Single job competency Model: This is traditional, time tested and
commonly used method. A position that s most important and being performed well will be identified from a class of
position (jobs). Data will be obtained observing its incumbent while performing the job, discussing with him/her and
other related departments, past records, decisions taken by that person, formal job description, etc. The data so
obtained will be used to build competency model for that particular position.
4.2.5
STEPS INVOLVED IN COMPETENCY MAPPING.
The steps involved in competency with an end result of job evaluation include the following:
Conduct a job analysis by asking incumbents to complete a Position Information Questionnaire (PIQ). This can be
provided for incumbents to complete, or you conduct one-to-one interviews using the PIQ as a guide. The primary
goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs.
Using results of job analysis develop a competency based job description. A sample of a competency based job
description generated from the PIQ may be analyzed. This can be developed after carefully analyzing the input from
the represented group of incumbents and converting it to standard competencies. With the competency based job
description, begin the mapping of competencies throughout human resources processes. The competencies of the
respective job description become factors for assessment on the performance evaluation. Using competencies will
help guide you to perform more objective evaluations based on displayed or not displayed behavior.
Taking competency mapping one step further, we can use the results of evaluation to identify in what competencies
individuals need additional development or training. This will help in focusing training needs on the goals of the
position and company and help employees to develop towards the ultimate success of the organization.
4.2.6 BENEFITS OF COMPETENCY MAPPING.
Once Competency mapping is adopted successfully, the approach yields a number of benefits for Individuals in an
organization
To organizations it helps to translate the organizations vision and goals into expected employee behavior. Helps
implement more effective and legally defensible recruitment, selection and assessment methods. Reduces
recruitment cost. Properly implemented reduces absenteeism, reduces training cost, improves performance and
there by profitability. Reinforce corporate strategy, culture, and vision. Improve job satisfaction. Provide common
organization wide vision strategies. To Individual Managers it will identify performance criteria to improve the
accuracy and ease of the hiring and selection process. Provide more objective performance standards. Clarify
standards of excellence for easier communication of performance expectations to direct reports. Provide a clear
foundation for dialogue to occur between the manager and employee about performance, development, and careerrelated issues. To Individual Participants it will identify competencies for a particular role/job. Generate
behavioral indicators for these competencies. Understand and integrate competencies identified with other HR
systems and processes like selection, placement, promotion, training etc. understand various methodologies used
for competency mapping. Develop competency models for own organizations
4.2.7.
MICROSOFT COMPETENCY MODEL.
Microsoft steadily maintained an edge over its competitors because of its competence advantage. This company
achieved this competence advantage through well crafted and implemented competency development model.
Microsoft has a specific program for development of competencies called Skills Development Program It is also
called SKUD within Microsoft terminology. This program consists of Five components as described below.
Thomas Davenport conducted a detailed case study on Microsoft competency and knowledge Management
initiative and published it in 1997 along with other cases with the title Knowledge Management Case Studies.
Development of a structure of competency types and levels. In development the competency structure Microsoft
used a four type hierarchy model which included. Foundation skill is base level skills. Local advanced skills that
apply to a particular job. Global skills that is present in all employees with in a particular function. Universal skills
present in all employees within the entire company. Defining the competencies required for a particular job. While
mating jobs and competencies Microsoft IT development templates to measure competencies the average template

contained 40 to 60 competencies. Rating the performance of individual employees in a particular job based on
competencies. The goal of employee rating process was to build a competency inventory that could be used all
across Microsoft. For example, a manager who was building a new team for a specific project could query an online
database for the employees who were qualified for the project. Implement the competencies in an online system.
Skill planning and development involved building an online system that contained the competency structure, the
job rating system and rating database an the competency levels for employees. The system had web enabled front
end for easy access through Microsoft Intranet. Linkages to education resources. Microsoft goal was to be able to
recommend not only specific courses, but also even specific material or segments within a course that would be
aimed at the targeted competency levels. Microsoft hoped to use system to access course demand on the basis of
role description and the competencies required. Thus helped Microsoft that the program implemented was sue
program implemented was successful and contributed in keeping the company in high competency zone.
4.2.8 CASE STUDIES IN COMPETENCY MAPPING.
Case Study -1. Competency Mapping at The Kolkata Glory.
The Market place of the 21st Century is fraught with numerous challenges. As competition increases day-by-day,
there is tremendous pressure on organizations to exploit their resources to the maximum to achieve success.
Among others, the human resource is also under pressure as organizations expect their employees to work to their
highest potential. Under such circumstances, competency mapping can be of help to both for employer and the
employee. This case study was written to develop an understanding on the concept of competency mapping. What
is competency mapping? Why should companies employ competency mapping?
Competency mapping helps companies to achieve competitive advantage by identifying and bridging the gap
between the companies that an employee possesses and the competencies that the employee is expected to have
to perform the job effectively. For example, the hotel industry needs constant up-gradation of competencies to
remain competitive. Competency mapping gains significance under such circumstances. However, it is debatable if
competency mapping can help to achieve competitive advantage across various industries. Nevertheless,
competency mapping comes across as an important HR tool as seen in the case of The Kolkata Glory, a 5-star
hotel where competency mapping was carried-out for the concierge. Pedagogical Objective is to highlight the needs
and importance of the concept of competency management and to analyze and critically evaluate the concept of
competency mapping and also to debate on the relative relevance of competency mapping across industries and
different type of business. To understand the relationship between competencies and the critical success factors for
the hotel industry.
Case Study -2. Competency Mapping Titan Industries.
Titan Industries Ltd. was incorporated in 1984 as a joint venture between Tata Group and TIDCO Ltd, a Government of Tamil Nadu undertaking.
The company has been manufacturing and marketing quartz watches since 1987. The company diversified in 1995 into manufacturing and
marketing 18-Carat studded Jewelry. It expanded its business sphere entering into two more businesses, namely: License brands and accessories
to leverage the marketing and retailing skills by launching Fast Track eye gear and entering into an agreement for marketing Tommy Hilfinger
Watches. Precision engineering division is to leverage the precision engineering capabilities in Titan.
Human Resources department of Titan Industries has about 3,000 employees in its factories, the regional offices, and corporate office. The
members of the factory workforce are technocrats with a high level of technical skills, while the personal of corporate and regional offices are
from sales and marketing, retailing, finance, and administration backgrounds. The HR personnel are performing support functions.
Table : Mapped Competencies at each level
Levels/Competency
Knowledge
Skill Competency
Behavioral
Competency
Competency
Entry Level
Competency
Profile for the
position of sales
officer/sales executive

Differential Level
Competency
Profile for the
position of sales
officer/sales executive

Basic marketing
and selling concept
Channel functions
and flows.
Product and
branding strategies.
Analyzingn
consumer Market
and buying
behavior.
Market Knowledge
Customer
Knowledge

Basic selling and

communication skill
Problem-solving skills
Quantitative
reasoning
Followup &
maintenance
Stress Tolerance

Positive Attitude
Knowledge
High Emotional
stamina
Focus
Ego Drive

Relationship Building

Positive attitude

Decisiveness
Organization Initiative

Personal Integrity
Focus

Product Knowledge

High energy level

Competitor
Knowledge

Entry Level
Competency
Profile for the
position of sales
officer/Customer
Relationship officer

1.Goal Orientation
2.Customer
Perception
3.Value Driven

Assertiveness

1.Comminication Skill
2.Selling Skills
3.Undestanding needs
4.Problem Solving
skills
5.Stress Tolerance

1.Positive Attitude
2.Knowlegeable
3.Assertiveness
4.Helpful

In Titan Industries Ltd . the hierarch positions in sales are : Sales channel The regional sales manager heads the
channel . Other position includes area sales manager , sales executive and sales officer. Retail sales (watch
Division) The regional retail executive heads the division where the other two levels are store manager and
customer relationship officer. Jewelry Division The regional business manager is the head and other levels includes
regional business executive, boutique manager, assistant boutique manager and retail sales officer
The competency profile for the position of sales officers or sales executives requires consideration at two levels- at
entry level and differential level. Both the levels need knowledge competency, skill competency and behavioral
competency. At entry level, the rails sales officer and customer relationship officer need knowledge, skill, and
behavioral competencies. The regional sales manager and area sales manager must have managerial competencies
translated to financial competencies. The managerial competencies include Human resource in terms of bu cluster
etc.
Mapped competencies.
Competency Profile: Sales officer or sales executive at entry level. Sales officer or sales executive at different level
as they move up along the organizational hierarchy. Retail sales officer or customer relationship officer at entry
level are shown in table above.
The competency profiles for the position of regional sales manager and area sales manager are as follows:
Table : Managerial and Functional competency
Managerial Competency
Functional Competency
Human Resource Cluster

Goal and action cluster

Directing Subordinate Cluster

1.

Marketing Knowledge

2.

Leading both in terms of business and team

1.

Sales and Process Driven

2.

Foresight and planning

3.

Trade relationship management

4.

Strong analytical knowledge

4.3 COMPETENCY MAPPING PROCEDURE AND STEPS.

All organization are talking about competencies. Some have truly worked the concept into several of their
processes. A few have fully implemented competency modeling and reporting system in place. These address the
development of people from process design through succession. However, quite a few organizations are still striving
to build a competency model and implement it. Most Organizations of all sizes are still struggling with defining,
designing, and implementing competency model projects. The process is completely customizable. The decisions of
competency design are driven by a number of organizational factors, including management philosophy, customer
requirements, business needs, and in-place processes. These factors vary from one organization to another,
requiring a customized approach to competencies in the workplace. Customization is essential to the overall
success of competency efforts, since every organization must integrate competency concepts into its own job
design, recruitment, hiring orientation, development, and succession processes.
Designing competency studies. There are three methods for the design of competency studies.

The Classic study design using criterion samples. A short study design using panels. Studies of single incumbent
and future jobs where there are not enough job holders to offer samples of superior and average performance
Steps in the Classic competency study design.
Define performance effectiveness criteria. Identify a criterion sample. Collect Data. Analyze data and develop
competency model. Validate the competency model. Prepare applications of the competency model. A full
competency study takes two to three months, depending on the logistics of scheduling and conducting the
Behavioral Event Interviews (BEI) , and about 30 person days. A rule of thumb is to budget one and half person days
per BEI- half day to conduct the BEI, half a day to code it, an additional half for concept formation , report writing,
and project administration.
Performance Criteria
Performance criteria basically define what an individual needs to accomplish in order to be deemed competent
based upon a specific competent statement. Performance criteria are expectations for performance of specific
competency. They define the performance behaviors that are necessary for an identified competency. Performance
criteria have been used in the past to define the required standards for a job applicant. Similarly, performance
criteria have been used to monitor and manage job performance through appraisal, and training and development
programs have been designed and evaluated using performance criteria.
As Human resources Department (HRD) have become more integrated it makes sense to have ne common set of
criteria to cover common themes in different people-management processes. This would ensure that key criteria
used to select an individual are also used to monitor and manage their performance and to focus their training and
development. Competencies are an efficient way of providing a common framework of performance criteria for use
across the full range of people-management process.
Characteristic of Performance Criteria . Describe employees behavior, Describe behavior that is observable
and measureable, Are limited to a single behavior, Include sufficient description of the behavior, Include a
performance standards, Include essential aspect of performance.
Sample of Performance criteria. Performance statements are fundamentally behavioral objective and should
begin with a verb. In addition, they should be appropriate to the cognitive, affective, and psychomotor domains
defined by Bloom.
Table: RN orientation competency performance criteria (samples)
Standard Interdisciplinary Collaboration
Competency Statement

Performance Criteria

Initiate and maintains a liaison relationship with

all appropriate health care providers to ensure that all
efforts effectively complement one another

1.
2.

Initiates referrals when appropriate.

Documents evidence of interdisciplinary
collaboration.

Standard Ethics
Competency Statement
Utilizes code for nurse established by the ANA as
a guide for ethical decision-making in practice.

Performance criteria
1. Provides an example of an ethical dilemma
encountered in home care practice.
2. Verbalizes the chain of command to be used
when encountering an ethical dilemma.

Table : Comparison of instructional objective and performance criteria

Feature

Instructional Objectives

Performance Criteria

Behavioral emphasis

Knowing

Doing

Means of evaluation

Written test

Performance checklist

Location of evaluation

Classroom

Work setting

Criteria Sampling
Criteria sampling or sampling criteria also referred to as eligibility criteria; includes a list of characteristics essential
for membership or eligibility in the target population. The criteria are developed from the research problem , the
purpose, review of literature, the conceptual and operational definition of the study variables, and the design. The
sampling criteria determine the target population, and the sample is selected from the accessible population with in
the target population. When the study is complete, the findings are generalized from the sample to the accessible
population and then to the target population. A researcher might identify very broad sampling criteria for a study,
such as all adults over 18 years of age able to read and write English. Sampling criteria may include characteristic
such as the ability to read, to write responses on the data collection instruments or forms, and to comprehend and
communicate using English language. Age limitation s are often specified, such as adults 18 years aical incidencend
older. Persons who are able to participate fully in the procedure for obtaining informed consent are often selected as
subjects. If potential subjects have diminished autonomy or are unable to give informed consent, consent must be
obtained from their legal representative. Thus, persons who are legally or mentally incompetent, terminally ill , or
confined to an institution are more difficult to access as subjects. Sampling criteria can become so restrictive that
an adequate number of subjects cannot be found.
Tools for Data Collection
Following are the tools of data collection for mapping are: Observation method, Repertory grid, Critical incidence
technique, Expert panels, Surveys, Automated expert systems,Job task analysis

Behavioral event interview

Data Analysis. Data analysis is a practice in which raw data is ordered and organized so that useful information
can be extracted from it. The process of organizing and thinking about data is key to understand what the data does
and does not contain. There are a variety of ways in which people can approach data analysis, and is notoriously
easy to manipulate data during the analysis phase to push certain conclusions or agendas. For this reason, it is
important to pay attention when data analysis is presented, and to think critically about the data and conclusions
which were drawn.
Data analysis in competency mapping contains the following steps:
Review list of competencies. Review the competencies that are identified, to check if they fulfill the purpose of the
job. Competencies are finalized for each job role. Identify and list meta competencies. Have it agreed with
management team.Each role profiles in turn would now have a detailed set meta and sub competencies.
Each of the competencies are now defined in the context of the role profile.
Assign Proficiency Level
Define what proficiency means to the organization and what use would it be put to within the organization. Define
levels and differentiate between appraisal rating and proficiency level
Table : Construct Competency Definitions
Job family

Works Manager

Sales Manager

Production
Manager

Trasurer

Forcasting

Competency 1

ProblemSolving

Sales force
Management

Conflict
Management

Competency 2

Conflict
Management

Channel
Administration

Decision
Making

Competency -3

Quality
Management

Data Gathering

Problem
Solving

Issue
Management
Data Gathering

Validating Competency Model

Validation can be done in three stages, which are as follows:
Content Validation Session. Bring together an appropriate focus group consisting of top management, cross-section
managers, and typical role profile-holders.Validate the skill identified and competencies profiled. Conduct a
validation exercise to check for the ease of understanding implementation possibility, time, and the process
involved to roll it out through the enterprise. Define milestones for such an implementation work. Tabulate the
learning process. Evaluate whether the exercise has generated adequate data and information to process with the
competency definition and proficiency mapping exercise.
Reinforce Proficiency of Critical Competencies. At this stage, Proficiency analysis and validation is essential to be
conducted through similar cross management focus group. Illustrate with examples how proficiency levels have
been articulated, valued, and they would be used.
Refine Competency Definitions, if necessary. Focus on the competency definitions obtained through the validation
exercise. Conduct a top management workshop and finalize the definitions. Run a pilot focus group, if necessary.
Methods of Data Collection for Mapping
Following are the methods of data collection for mapping. Observation Method, Repertory Grid, Critical Incident
Technique, Expert Panels, Surveys, Automated Expert Systems, Job Task Analysis, Behavioral Event Interview
Observation Method. Resource persons observe the top and average performers while working and taking decisions,
interacting with people, leading co-employees, learning new aspects, and applying them. Typically, the first part of
such report contains record of observation and the second part observers own interpretation and analysis of record.
This observation of extreme performers in action facilitates identification of the competencies required to carry-out
a task or job in the most efficient manner and also, what inadequacy in competencies result in average
performance. However, effectiveness of this method depen upon the objectivity and neutrality of observers.
Repertory Grid. In a repertory grid analysis, the jobholder is asked to write on separate cards the names of atleast
six people whom he supervises or works with. The jobholder separates the cards into two sets, one those who are
good at work and other those who he considers are less efficient. The cards are shuffled with name face down and
the jobholder is asked to pick two cards from the pile and one from the other. The jobholder has to now describe the
ways in which the two are similar to each other and differ to the third. This process generate a list of attributes. The
jobholder I asked to be the behavioral indicators that made it possible to distinguish the good and less efficient.
The repertory grid technique can help a company to identify its core competencies as well as superior performance
competencies. This technique is best used by businesses that are either in the introductory stage, where it is
important to identify key success factors, or in the maturity stage, where change management becomes critical.
RGT is still new in the Indian management milieu, and it is used only by Turner Morrison. It involves distilling the
elements or construct-that underlie competencies, and using them to identify the latter. The process starts with a
team comparing the company to two other organizations that it thinks can pose a threat to it in the future. This is
done at the level of elements. For example , the team might identify a company with an excellent distribution
network as a threat; distribution is the element in this case. These constructs are laddered, or taken to their logical
denouement to understand the core competencies of the business. The same approach is used to arrive at superior
performance competencies; only, this time instead of companies , the team identifies three people :
A superior performer . An average performer . A Low performer. Thus, the competencies stand revealed.
Critical Incidence Techniques. The jobholder are interviewed in a systematic manner. They are asked structured
questions about what situation and challenges they have faced. The remarks about what situation and challenges
they have faced. The remarks about what they thought did and consequences of the action are noted down. Both
the incidences, ones in which the interview has been successful and also unsuccessful , are recorded. The
interviewee is asked about what factors he/she attributes to the success or failure in an incidence. The recorded
observations are analyzed to infer the needed competencies.This approach draws on the learning from the past
behavior. Due to the dynamic nature of the business and strategies, there is a danger that past learning may not be
a correct indicator of the competencies needed today and in the future.
Expert Panel. In this method, a team or panel of experts is constituted to identify the competencies required in the
organization.The experts are the following members: Top management representatives, Experts from different
functional background who have a fair idea of the nature of tasks performed in each function, Representatives from
HR department.The panel goes into details of the critical behaviors needed for successful performance in each job
or group of jobs. The business strategy and the expected behavior for achieving the desired results is studied and
documented. The panel could start with a list of standard competencies and arrive at modifications needed.
Surveys. A survey is a process of collecting data from existing population units, with no particular control over
factors that may affect the population characteristics of interest in the study. Alost every country in the world
uses survey to estimate their rate of unemployment, basic prevalence rof immunization against disease, opinions
about the Central Government , intentions to vote in an upcoming elections, and peoples satisfaction with

services and products that they buy. Survey are a key tool in tracking global economic trends, the rate of inflation in
prices, and investments in new economic enterprises. Surveys are one of the most commonly used methods in the
social sciences to understand the way societies work and to test theories of behavior. In a very real way , surveys
are a crucial building block in a modern information-based society.
Characteristic of surveys. Information is gathered primarily by asking people questions. Information is collected
either by having interviewers ask questions and record answers or by having people read or hear questions and
record their own answers. Information is collected from only a subset of population to be described a sample
rather than from all members.
Automated expert system. Expert system tools can be used to analyze the need to re-schedule based on progress
towards expected performance. They can also identify problems in production schedules developed for alternative
scenarios and present them in an easy-to-interpret format. They can extend the schedulers experience and greatly
ease the data analysis requirements.

Expert system could perform data reductions as well as analyze the output. They could make decisions to generate
alternative scenarios and select the best. This application of expert system technology would also be of use in
automated environments, where the user of the scheduling module might be a cell controller or another CPU. In this
circumstance, the need is to be able to reschedule and evaluate the results of the simulation scheduling application
without human intervention. If the analysis procedures couls be captured in an expert system, the decisions could
be made automatically.
Job Task Analsis. Basically, task descriptions are generated through the review training manuals or direct
observation of the job performance. The task descriptions are then clustered and weighed to reflect the essence of
the job. The steps involved are: Generation of task description item banks by scientific staff. Subject matter
specialists review the consolidated list and delete the tasks not performed or out-of-date tasks. The task list
narrowed down to most representative tasks. Experts rank the tasks based on the importance. Competence
required performing the tasks identified. This method requires a great deal of time and effort.
Behavioral Event Interview.The behavioral interview technique (BEI) is used by employers o evaluate a candidates
experiences and behaviors in order to determine their potential for success. The interviewer identifies desired skills
and behaviors, then structures open-ended questions and statements to elicit detailed responses. A rating system is
developed and selected criteria are evaluated during the interview. This methodology is used to identify
competencies in a person. It includes sitting through with the candidate in an interview situation carrying-out a
behavioral interview followed by recording of responses and identification of behavioral interview followed by
recording of responses and identification of behavioral codes. These codes will in turn help in identifying the
competencies in a person and arriving at a form of relative ranking for each competency: Empirical identification of
competencies, Precision about how competencies are expressed, Freedom from gender, cultural, bias, Generation of
data for assessment, training, etc.
Various Competency Models.
Job Competence Assessment method: This is developed using interview and observations of outstanding and
average performers to determine the competencies that differentiate between them in critical incidents
Modified Job Competence Assessment Method. This also identifies such behavioral differences, but to reduce costs,
interviewees provide a written account of critical incidents.
Generic Model Overlay Method: Organizations purchase an off-the-shelf generic competency model for a specific
role or fuction.
Customized Generic Model Method: Organizations use a tentative list of competencies that are identified internally
to aid in their selection of a generic model and then validate it with the input of understanding and average
performers.
Flexible Job competency Model Method: This seeks to identify the competencies that will be required to perform
effectively under different conditions in the future.
Systems Method: This demands reflecting on not only what exemplary performers do now, or what they do overall,
but also behaviors that may be important in the future.
Accelerated Competency Systems Method: This places the focus on the competencies that specifically support the
production of output, such as an organizations products, services or information.

CONCLUTION.
Competency mapping is not rocket science but it can be as explosive in terms of re-energizing employees and
building a dynamic organization. Competency model are not ends in themselves. Competency based HRM have the
capacity to actually derive organization change rather simply enabling change to take place.

CHAPTER -5
5.1

MOTIVATION.

INTRODUCTION.

Motivation comes from the Latin word Movere which means To Move . Employee motivation started as an
experimental project in the early 19 th Century. Ultimately, it evolved as a prime factor of todays organizational
success. In this fiercely competitive business environment containing talented employee is extremely crucial.
Human capital can be a point of differentiation for any organization. According to Harrington(2003), having an
outstanding workforce and better utilization of ideas are the key factors to any organization. Productivity is highly
correlated to employee motivation. It has been proven in many studies that productivity and employee motivation
are positively related. When the motivational factors get intensified, then the productivity of employees also
increases. There are many academic theories regarding this very issue.
Many individuals wrongly view motivation as a personal trait that is some individuals have it, and others do not.
But, motivation is defined as the force that causes an individuals to behave in a specific way. Simply put, an
extremely motivated person works hard at a task. An unmotivated person doesnt managers frequently have
difficulty in motivating employees. But, motivation is really an internal process. It is the result of the interaction of a
persons needs his or his power to make choices about how to meet those needs and the environment created by
management that appropriates these needs to be met and the choices to be made. Motivation isnt something that
a manager do to an individual. Motivation is the inner power or energy that pushes toward acting, performing
actions and achieving. Motivation has much to do with desire and ambition, and if they are absent, motivation is
absent too. A motivated person takes action and does whatever it needs to achieve his/her goals. Motivation is one
of the most important keys to success. When there is lack of motivation you either get no results, or only mediocre
results, whereas when there is motivation you attain greater and better results and achievements. A motivated
person is a happier person, more energetic, and sees the positive end result in his/her mind. The topic of motivating
employees is extremely important to managers and supervisors. Despite the important of the topic, several myths
persist -- especially among new managers and supervisors.The process that accounts for an individuals intensity,
direction, and persistence of effort towards reaching the goal.

5.2

PROCESS OF MOTIVATION.

In the initiation a person starts feeling lacknesses. There is an arousal of need so urgent, that the bearer has to
venture in search to satisfy it. This leads to creation of tension, which urges the person to forget everything else
and cater to the aroused need first. This tension also creates drives and attitudes regarding the type of satisfaction
that is desired. This leads a person to venture into the search of information. This ultimately leads to evaluation of
alternatives where the best alternative is chosen. After choosing the alternative, an action is taken. Because of the
performance of the activity satisfaction is achieved which than relieves the tension in the individual.

5.3

TYPES OF MOTIVATION.

Achievement Motivation. It is the drive to pursue and attain goals. An individual with achievement motivation
wishes to achieve objectives and advance up on the ladder of success. Here, accomplishment is important for its
own shake and not for the rewards that accompany it. It is similar to Kaizen approach of Japanese Management.
Affiliation Motivation. It is a drive to relate to people on a social basis. Persons with affiliation motivation
perform work better when they are complimented for their favorable attitudes and co-operation. Competence
Motivation. It is the drive to be good at something, allowing the individual to perform high quality work.
Competence motivated people seek job mastery, take pride in developing and using their problem-solving skills and
strive to be creative when confronted with obstacles. They learn from their experience. Fear Motivation. It is drive
to influence people and change situation. Power motivated people wish to create an impact on their organization
and are willing to take risks to do so. Attitude Motivation. Attitude motivation is how people think and feel. It is
their self confidence their belief in themselves, their attitude to life. It is how they feel about the future and how
they react to the past. Incentive Motivation. It is where a person or a team reaps a reward from an activity. It is
You do this and you get that, attitude. It is the types of awards and prizes that drive people to work little harder.
Fear Motivation. Fear motivation coercions a person to act against will. It is instantaneous and gets the job done
quickly. It is helpful in the short run.

5.4

THEORIES OF MOTIVATION

Classical
Theor

Description

Strengths

Limitation

Paradigm

Managerial

y
Heize
nbergs
Two
Factor
Theor
y

Maslows
Hierarch
of Needs

Theor
y X and Y

Application

States
that
there
are
two
general
factors
that
cause
Job
satisfaction
or
dissatisfaction
Job
context
as
source
of
dissatisfaction and
job
content
as
source
of
satisfaction.

Simplifies the
source
of
dissatisfaction
and satisfaction,
which gives the
employer
an
understanding of
what to do to
decrease
dissatisfaction
and
increase
satisfaction; has
practical
implications
for
management
thinking

Seems
only verifiable
if the same
methods
are
used, not if
different
methods
are
used;
if
it
cannot
be
replicated
using different
method,
it
does not hold
as
much
weight
as
other theories.

It works well
within
the
paradigm
of
management
working to find
ways to improve
employee
attitudes. The two
factors
have
continued to be
relevant
in
subsequent
thinking, but have
been
drastically
expanded upon.

Mangers have
to make the work
environment
challenging
for
their employees.
Manager also
wants
the
employees to work
to
their
full
potential.

States
that
there
is
a
hierarchy of needs
where the bottom
needs must be
met before moving
on to the higher
order needs. It is
strict
and
universal.

Easy
to
understand;
straight-forward
Hierarchy of
importance;
makes sense in
general.
Motivation is the
result of a series
of needs and can
be traced to what
needs have been
satisfied to that
point

Need
do
not follow such
a
strict
hierarchy;
does
not
translate
to
more
social
cultures; need
tend to vary in
importance
depending on
stage in life;
once one need
is met, the
next is not
necessarily the
most
important

Functions
within a general
paradigm. Clearly
someone needs to
be able to eat
before
worrying
about
other
things. It works
within the USs
individuals
culture.

Managers
have to figure out
what level of need
each employee is
on. Managers have
to provide certain
things
to
employees
for
them to move fro
level
to
another.Managers
hae
to
provide
things that range
from
cigarettes
breaks
to
retairment
benefits.

Both of these
theories have the
foundation that
managements
role is to assemble
the factors of
production
including people,
For the
economic benefit
of a company.

Theory-Y
there is hope that
you can align
personal goals
with
organizational
Goals by
using employees
own search for
fulfillment as the
motivator

Theory X
assumptions
that people
will only work
for money
rather than
security.

Theory-X
approaches can
range from hard
approach to soft
approach. TheoryY approach is that
high level needs
of esteem will
always be a factor
because needs
are never
completely
satisfied.

Managers
must have a
management style
that is between a
sot and hard
approach. They
have to balance a
style that will
range from threat
and coercions to
giving increasing
rewards to
employees

The contemporary theories of motivation are more relevant today than the classical theories since they have
greater flexibility and are more relevant on todays atmosphere. Equity theory is important for a manager because
it is important for someone to feel recognition for their contributions. A manager may not think that giving extra
benefit for someones effort is bad, but the resentment others will feel will outweigh any benefits for the new. We
feel that this theory is applicable for the average or below average employee. They need to know the exact amount
of effort needed to get a stable, suitable reward. For the above average employee or over-achieving employee, the
are much less interested in everyone else than themselves and will compare themselves internally rather than to

others. The ERG theory is a useful theory when understanding the common needs of all people, and it recognizes
that the order of importance for of these needs varies foe individuals. In order of understanding the motivation, this
theorys assumption of flexibility precludes its use across a wide demographic without a solid understanding of eah
persons order of importance. The literature review showed that people at different levels o an organization often are
motivated by different things, so when one group tries to motivate another, they are often coming from different
perspective than their target audience. It is useful in theory, but the practice of it is left up to individual
interpretation. Goal setting theory I much more relevant in todays wok setting. It give managers a much better
understanding of how to motivate employees. This theory guides manager on different aspect of motivating goals
and also provides a framework to give employees to st goals for themselves. It builds off the growth needs of ERG
theory and the self-actualization of the Maslows theory by saying that goals are the clear way to get people to
strive for achievement. For a manager trying to motivate a workforce towards a specific end, this theory is
extremely helpful. It is also useful for allowing employees to motivate themselves by rewarding them for creating
andth in th in reaching goals within the context of the organization. If personal and company goals can be aligned,
then the manager has used this theory to its fullest. In acquired needs theory, people with a high need for
achievement seek to excel and thus tend to avoid both low-risk and high-risk situation. Then, those with a high
need for affiliation need harmonious relationships with each other and need to feel accepted by other people.
Furthermore, a persons need for power can be one of two types, personal and institutional. Accordingly, those who
need personal power want to direct others, and this need is often perceived as the contrary, in expectancy theory
expectancy is the belief that ones effort will result in attainment of desired performance goals. Similarly,
instrumentality is the belief that a person will receive a reward if the performance expectation is met in the
workplace While McClelland theory had stronger impact on personal truth in psychology about our need (when
performing within the organization, for example), Vrooms expectancy theory is related mostly to Strategic Human
Resource Management, correlating mainly with how to imply better productivity due to individuals expectance on
being rewarded in the performance process.
Contribution of Robert Owen : Though Owen is considered to be paternalistic in his view, his contribution is of a
considerable significance in the theories of Motivation. During the early years of the nineteenth century, Owens
textile mill at New Lanark in Scotland was the scene of some novel ways of treating people. His view was that
people were similar to machines. A machine that is looked after properly, cared for and maintained well, performs
efficiently, reliably and lastingly, similarly people are likely to be more efficient if they are taken care of. Robert
Owen practiced what he preached and introduced such things as employee housing and company shop. His ideas
on this and other matters were considered to be too revolutionary for that time. Jeremy Benthams The Carrot
and the Stick Approach : Possibly the essence of the traditional view of people at work can be best appreciated
by a brief look at the work of this English philosopher, whose ideas were also developed in the early years of the
Industrial Revolution, around 1800. Benthams view was that all people are self-interested and are motivated by the
desire to avoid pain and find pleasure. Any worker will work only if the reward is big enough, or the punishment
sufficiently unpleasant. This view - the carrot and stick approach - was built into the philosophies of the age and is
still to be found, especially in HE. The various leading theories of motivation and motivators seldom make reference
to the carrot and the stick. This metaphor relates, of course, to the use of rewards and penalties in order to induce
desired behavior. It comes from the old story that to make a donkey move, one must put a carrot in front of him or
dab him with a stick from behind. Despite all the research on the theories of motivation, reward and punishment are
still considered strong motivators. For centuries, however, they were too often thought of as the only forces that
could motivate people. At the same time, in all theories of motivation, the inducements of some kind of carrot are
recognized. Often this is money in the form of pay or bonuses. Even though money is not the only motivating force,
it has been and will continue to be an important one. The trouble with the money carrot approach is that too often
everyone gets a carrot, regardless of performance through such practices as salary increase and promotion by
seniority, automatic merit increases, and executive bonuses not based on individual manager performance. It is as
simple as this : If a person put a donkey in a pen full of carrots and then stood outside with a carrot, would the
donkey be encouraged to come out of the pen ?. The stick, in the form of fearfear of loss of job, loss of income,
reduction of bonus, demotion, or some other penaltyhas been and continues to be a strong motivator. Yet it is
admittedly not the best kind. It often gives rise to defensive or retaliatory behavior, such as union organization,
poor-quality work, executive indifference, failure of a manager to take any risks in decision making or even
dishonesty. But fear of penalty cannot be overlooked. Whether managers are first-level supervisors or chief
executives, the power of their position to give or with hold rewards or impose penalties of various kinds gives them
an ability to control, to a very great extent, the economic and social well-being of their subordinates. Abraham
Maslows Need Hierarchy Theory : One of the most widely mentioned theories of motivation is the hierarchy of
needs theory put forth by psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy,
ascending from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of
need ceases to be a motivator. As per his theory this needs are :

Physiological Needs : These are important needs for sustaining the human life. Food, water, warmth, shelter,
sleep, medicine and education are the basic physiological needs which fall in the primary list of need satisfaction.
Maslow was of an opinion that until these needs were satisfied to a degree to maintain life, no other motivating
factors can work. Security or Safety Needs: These are the needs to be free of Physical danger and of the fear of
losing a job, property, feed or shelter. It also includes protection against any emotional harm. Social Needs: Since
people are social being, they need to belong and be accepted by others. People try to satisfy their need for
affection, acceptance and friendship. Esteem Needs: According to Maslow, once people begin to satisfy their need
to belong, they tend to want to be held in esteem both by themselves and by others. This kind of need produces
such satisfaction as power, prestige status and self-confidence. It includes both internal esteem factors like selfrespect, autonomy and achievements and external esteem factors such as status, recognition and attention.

Need for self-actualization: Maslow regards this as the highest need in his hierarchy. It is the drive to become
what one is capable of becoming, it includes growth, achieving ones potential and self-fulfillment. It is to maximize
ones potential and to accomplish something. As each of these needs are substantially satisfied, the next need
becomes dominant. From the standpoint of motivation, the theory would say that although no need is ever fully
gratified , a substantially satisfied need no longer motivates. So if you want to motivate someone, you need to
understand what level of hierarchy that person is on and focus on satisfying those needs or needs above that level.
Maslows need theory has received wide recognition, particularly among practicing managers. This can be
attributed to the theorys intuitive logic and ease of understanding. However, research does not validate these
theory. Maslow provided no empirical evidence and other several studies that sought to validate the theory found
no support for it. Theory X and Theory Y of Douglas McGregor: McGregor in his book The Human Side of
Enterprise states that people inside the organization can be managed in two ways. The first is basically negative,
which falls under the category X and the other is basically positive, which falls under the category Y. After viewing
the way in which the manager dealt with employees, McGregor concluded that a managers view of the nature of
human beings is based on a certain grouping of assumptions and that partly used.he or she tends to mold his or
her behavior towards subordinates according to these assumption. Under the assumption of theory X:Employees
inherently do not like to work and whenever possible, will attempt to avoid it. Because employees dislike work, they
have to be forced , coerced or threatened with punishment to achieve goals. Employees avoid responsibilities and
do not wok till formal directions are issued. Most workers place greater importance on security over all other factors
and display little ambition. In Contrast under the assumption of Theory Y: Physical and mental effort at work is as
natural as rest or play. People do exercise self-control and self-direction and if they are committed to those goals.
Average human being are willing to take responsibility and exercise imagination, ingenuity and creativity in solving
the problems of the organization. That the way the things are organized, the average human beings brain power is
only used. On analysis of assumption it can be detected that theory X assumes that lower-order needs dominates
individuals and theory Y assumes that higher-order needs dominate individuals. An organization that is run on
Theory X lines tends to be authoritarian in nature, the word authoritarian suggests such idea as the power to
enforce obedience and the right to command. In contrast Theory Y organization can be described as
participative where the aims of the organization and of the individuals in it are integrated; individuals can
achieve their own goals best by directing their efforts towards the success of the organization. However, this theory
has been criticized widely for generalization of work and human behavior. Contribution of Rensis Likert: Likert
developed a refined classification, breaking down organizations in to four management systems. Primitive,
Benevolent, consultative and participative. As per the opinion of Likert, the 4 th system is the bevationst, not only for
profit organizations, ut also for non-profit firms.
Frederrick Herzbergs motivation-hygiene theory: Frederick has tried to modify Maslows need theory. His theory is
also known as two factor theory or Hygiene theory. He stated that there are certain satisfiers and dissatisfiers
employees at work. Intrinsic factors are related to job satisfaction , while extrinsic factors are associated with
dissatisfaction. He devised his theory on the question: What do people want from their job ?. He asked people to
describe in details, such situations when they felt exceptionally good or exceptionally bad. From the responses he
received, he concluded that opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristic from
a job does not necessarily make the job satisfying. He states that presence of certain factors in the organization is
natural and the presence of the same does not lead to motivation. However, their nonpresence leads to
demotivation. In similar manner there are certain factors, the absence of which causes no dissatisfaction, but their
presence has motivational effect. Example of Hygiene Factors are: Security, status, relationship with subordinates,
personal life, salary, work condition. Example of Motivational factors are: Growth prospectus, job advancement,

responsibility, challenges. Contribution of Elton Mayo: The work of Elton Mayo is famously known as HawthOrne
Experiments. He conducted behavioral experiments at the Hawthorne Works of the American Western Electric
Company in chicago. He made some illumination experiments, introduced breaks in between the work performance
and also introduced refreshments during pauses. On the basis of this he drew the conclusions that motivation was
a very complex subject. It was not only about pay, work condition and morale but also included psychological and
social factors. Although this research has been criticized from many angles, the central conclusion drawn were:
People are motivated by more than pay and conditions. The need for recognition and a sense of belonging are very
important. Attitudes towards work are strongly influenced by the group. Vrooms Valance X Expectancy Theory: The
most widely accepted explanations of motivation has been propounded by Victor Vroom. His theory is commonly
known as expectancy theory. The theory argues that the strength of a tendency to act in a specific way depends on
the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that
outcome to the individual to make this simple, expectancy theory says that an employee can be motivated to
perform better when there is a belief that better performance will lead to good performance appraisal and that this
shall result into realization of personal goal in the form of some reward. Therefore the employee is: Motivation =
Valance X Expectancy. The Porter and Lawler Model : Lyman W.Porter and Edward E.Lawler developed a more
complete version of motivation depending upon expectancy theory. Actual performance in a job is primarily
determined by the effort spent. But it is also affected by the persons ability to do the job and also by individuals
perception of what the required task is. So performance is the responsible factor that leads to intrinsic as well as
extrinsic rewards. These rewards, along with the equity of individual leads to satisfaction. Hence, satisfaction of the
individual depends upon the fairness of the reward. Clayton Alderfers ERG theory: Alderfer has tried to rebuild the
hierarchy of needs of Maslow into another model named ERG (Existence-Relatedness-Growth). According to him
there are 3 groups of core needs as mentioned above. The existence group is concerned mainly with providing basic
material existence. The second group is the individuals to maintain interpersonal relationship with other members
in the group. The final group is the intrinsic desire to grow and develop personally. The major conclusions of this
theory are: In an individual, more than one need may be operative at the same time. If a higher need goes
unsatisfied than the desire to satisfy a lower need intensifies. It also contains the frustration-regression dimension.
McClellands Theory of Needs: David McClelland has developed a theory on three types of motivating needs: Need
for Power. Need for affiliation. Need for achievement. Basically people for high need for power are inclined towards
influence and control. They like to be at the center and are good orators. They are demanding in nature, forceful in
manners and ambitious in life. They can be motivated to perform if they are given key positions or power positions.
In the second category are the people who are social in nature. They try to affiliate themselves with individuals and
groups. They are driven by love and faith. They like to build a friendly environment around themselves. Social
recognition and affiliation with others provides them motivation.

People in the third area are driven by the challenge of success and fear of failure. Their need for achievement is
moderate and they set for themselves moderately difficult tasks. They are analytical in nature and take calculated
risks. Such people are motivated to perform when they see atleast some changes of success. McClelland observed
that with the advancement in hierarchy the need for power and achievement increased rather than Affiliation. H
also observed that people who were at the top, later ceased to be motivated by this drives.
Equity Theory: As per the equity theory of J.Stacey Adams, people are motivated their beliefs about the reward
structure as being fair or unfair, relative to the inputs. People have a tendency to use subjective judgment to
balance the outcomes and inputs in the relationship for comparisons between different individuals. Accordingly

If people feel that they are not equally rewarded they either reduce the quantity or quality of work or migrate to
some other organization. However, if people perceive that they are rewarded higher, they may be motivated to
work harder.
Reinforcement Theory: B.F.Skinner, who propounded the reinforcement theory , holds that by designing the
environment properly, individuals can be motivated. Instead of considering internal factors like impression,
feelings, attitudes and other cognitive behavior, individuals are directed by what happens in the environment
external to them. Skinner states that work environment should be made suitable to the individuals and that
punishments actually leads to frustration and de-motivation. Hence, the only way to motivate is to keep on making
positive changes in the external environment of the organization. Goal Setting Theory of Edwin Locke: Instead of
giving vague tasks to people, specific and pronounced objectives, help in achieving them faster. As the clarity is
high, a goal orientation also avoids any misunderstandings in the work of the employees. The goal setting theory
states that when the goals to be achieved are set at a higher standard then in that case employees are motivated
to perform better and put in maximum effort. It revolves around the concept of Self-efficacy i.e. Individuals belief
that he or she is capable of performing a hard task. cognitive Evaluation Theory: As per these theory a shift from
external rewards to internal rewards results into motivation. It believes that even after the stoppage of external
stimulus, internal stimulus survives. It relates to the pay structure in the organization. Instead of treating external
factors like pay, incentives, promotion etc and internal factors like interest, drives, responsibility etc, separately,
they should be treated as contemporary to each other. The cognition is to be such that even when external
motivators are not there the internal motivation continues. However, practically extrinsic rewards are given much
more weightage.

5.5

MOTIVATIONAL FACTORS.

There are several factors tht motivate a person to work. The motivational factors can be broadly divided into two
groups. Monetary Factors, Non-Monetary Factors.
Monetary Factors: Salaries and Wages, Bonus, Incentive. Salaries and Wages: Salaries and wages is one of the most
important motivational factors. Resonable salaries must be paid online while fixing salaries the organization must
consider such as Cost of living, Company ability to pay, Capability of company to pay. Non-Monetary Factors: Status
or Job title, Appreciation and Recognition, Delegation of Authority, Working Condition, Job Security, Other Factors,
Status or Job Title. By providing a higher status or designation the employee must be motivated. Employees prefer
and proud of higher designation. Appreciation and Recognition. Employee must be appreciated for their services.
The appreciation should not come from immediate supervisor but also from higher authorities. Delegation of
Authority. Delegation of authority motivates a subordinate to perform tasks with dedication and commitment when
authority is delegated , the subordinate knows that his supervisor has placed faith and trust on him. Working
Condition. Provision for better working condition such as air conditioned room, proper plant layout, proper
sanitation, equipment, machines, Job security. Guarantee of job security or lack of fear of dismissal etc., can also be
a good way to motivate the employees.
Other Factors: Providing Training to the employees, Proper Job Placement, Proper Promotion and Transfer, Proper
performance feedback, Proper welfare facilities, Flexible working hours.

5.6

NEED AND IMPORTANCE OF MOTIVATION.

Higher efficiency, Reduces absenteeism, Reduces employees turnover, Improves a corporate image, Good
relation, Improved morale

5.7

CONCLUTION.

Motivating people is still a challenge for the simple reason that ever one is different. The reason that different
theories exist to explain motivation is that no single theory is able to fully describe human behavior. With so many
possible explanations for how a person can be motivated, managers would have to be experts in nearly all theories
in order to apply them correctly for each employee. Different organizations may use certain aspect of motivation in
specific areas while incorrectly neglecting other methods of motivation elsewhere.

6.0

RETENTION.

6.1

INTRODUTION

Staff retention is one of the important issues within organization and can influence its success. If the best staff are
not retained then organization may not retain key clients and customers. Keeping valuable staff can be a source of
competitive advantage. Their knowledge, expertise and skills can contribute to the long term success. Of an
organization. You need to attract new good people, use them effectively and reward them so you keep the staff you
want and also need to accept that some staff will leave and this is not always negative. The process is therefore
attract, recruit, induct, develop, reward, retain and separate. It costs money when you lose staff and cost money to
keep them but failing to deal with staff retention can potentially affect financial performance and reduce an
organizations profit. Staff retention is not a simple issue but if you want to keep your best staff then you need to
take action. However, you should not be alone in trying to deal with staff retention. A variety of people should be
working together and accepting joint responsibility for staff retention.
It is not appropriate to retain all staff and it is the quality not the quantity of staff that are retained that is important
organization need to accept that staff will leave and staff turnover is not always negative . Rather than recruit and
retain , emphasis should be on attract, recruit and the separate. Separating positively can result in staff being
positive about organization.
When does staff retention begins?

Staff retention begins long before recruitment. You might think that this is strange and retention will only begin
once, you have staff working with in the organization. However you need to consider whether the organization has a
good reputation and in some where that people want to work, organization need to focus on employer brand to both
attract and retain staff and this requires more than websites and glossy brochures. If it is not a good place to work
and you have difficulty keeping staff then you will probably not attract good people. If you are not accurate and
honest then any new member of staff may leave quickly.
Meaning of retention.
Employees retention involves taking measure to encourage employees to remain in the organization for the
maximum period of time. Corporate is facing lot of problem in employee retention these days. Hiring knowledgeable
people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth
of opportunities for talented person. There are many organizations which are looking for such employees. If a
person is not satisfied by the job he is doing, he may switch over to some other more suitable job. In todays
environment it becomes very important for organizations to retain their employees.

Benefit of Staff Retention.

There are many benefit for retaining staff as we have seen in earlier days. Reduce cost of recruitment, selection and
training of new staff and makes it easier to recruit new staff. Keep skills and knowledge in the organization,
particularly t if there are skills shortage. Improve performance, productivity and profitability. Improve customer
loyalty and satisfaction, can increase sales and aid competitiveness. Less costly than replacing staff
Disadvantages of staff retention and advantages of staff turnover. Employers need to accept that staff will
leave and some staff turnover is unavoidable. This can be healthy for an organization because new staff turnover
can cause career blockages, lack of promotion opportunities, an older workforce and lack of new ideas, skills and
approaches. It is sometime easier to introduce change when there is staff turnover. Staff turnover provides
opportunities to redesign jobs and change jobs and working practices such as, replacing full time job with part
time. Losing staff can reduce some cost by staff employed on lower pay scales.
Assessment and measurement to measure staff turnover. There are lots of different assessment and
measurements that can be used to measure staff turnover, morale, staff retention and other issues.
Surveys and discussion groups. Attitudes or opinion surveys examine the attitudes and perceptions of staff
towards their jobs and the organizations/employer. These are often used when organization begin to encounter
problems or difficulties and they need to understand why , as they can identify critical factors. Attitude survey
include one-to-one interviews, discussion groups or questionnaire and can be general or very specific. If surveys
are completed by existing staff, potential leavers and those who have already left, information can be compared.
This helps to identify and explain the causes of staff turnover and doing something about it can help improve staff
retention.
Absenteeism: Staff retention can be linked absence staff, who are frequently absent, may be considering leaving
and may be attending job interviews. It is important to monitor absence figures, weekly or monthly and annually
and try to determine cause of absence. Staff Turnover Rates: Staff turnover is closely related to retention and
can highlight problem area. Turnover refers to starters and leavers in an organization, including voluntary and
involuntary leavers.

Number of staff leaving in a given period

-------------------------------------------------------Average number employed during same period

x 100

Whenever possible try to use data for those people who are leaving voluntarily as this group is the most important
when considering the retention and the one that employers have least control over. Stability and retention rate can
be calculated :
Number with minimum one year service
------------------------------------------------------Total Number employed in a year ago

x 100

Employee Retention Strategies : Hiring individuals who are truly fit to succeed in the position for hire will
dramatically increase the chances of that employee being satisfied with his or her work and remaining with the
company for extended period of time. By far , we have found this is to be biggest predictor of future employee
retention. Communication, Include employees in decision making, Allow team members to share their knowledge
with others, Shorten the feedback loop, Balance work and personal life, Provide opportunities for growth,
Recognize team members for their hard work, Clearly define what is expected of team members, The quality of
supervision, Fair and equitable treatment of all employees, Best employee reward programs, Career development
program, Performance based bonus, Employee referral plan, Loyalty bonus, Giving voice to the Knowledge banks,
Employee Recreation, Gifts on some occasions, Accountability, Surveys, Fun and Laughter at workplace.
Communication: Communication has become so heavily stressed in the work place that it almost seems clich.
However, communication couldnt be more important in the effort to retain employees. Be sure that team members
know their rules, job description, and responsibilities with in the organization. Communicate any new company
policies or initiatives to all employees to be sure that everyone is on the same page. Nobody wants to feel that they
are being let out of the loop. Include Employees in decision making:It is incredibly important to include team
members in the decision making process, especially when decision will effect an individuals department or work
team. This can help to create of employee involvement and will generate new ideas and perspectives that top
management might never have thought of. Allow team members to share their knowledge with others: The
highest percentage of information occurs when on shares the information with others. Having team members share
when they have learned at a recent conference or training workshop will not only increase the amount of
information they will retain, but also lets a team member know that he is A valuable member of the organization.
Facilitating knowledge sharing through an employee mentoring program can be equally beneficial for the team
member being mentored as well as mentor. Shorten the feedback loop: Do not wait for an annual performance
evaluation to come to give feedback how an employee is performing. Most team members enjoy frequent feedback
about how they are performing. Shortening the feedback loop will help to keep the performance level high and will
reinforce positive behavior. Feedback does not necessarily need to be scheduled or highly structured. Simply
stopping by a team members desk and letting them know they are doing a good job a current project can do
wonders for morale and help to increase retention. Balance work and personal life: Family is incredibly
important to team members. When work begins to put a significant strain on ones family no amount of money will
keep an employee around, stress the importance of balancing work and ones personal life. Small gestures such as
allowing a team member to take an extended lunch once a week to watch his sons baseball game will likely be
repaid with loyalty and extended employment with an organization.
Provide Opportunities for growth and development: Offer opportunities for team members to acquire new
skills and knowledge useful to the organization. If an employee appears to be bored or burned out in a current
position offer to train this individual in another facet of the organization where he or she would be good fit. Nobody
wants to feel struck in their position and no possibility for advancement or new opportunities. Recognize team
members for their hard work: This can be one of the single greatest factors affecting employees retention.
Everybody, in all levels of an organization wants to know that their efforts are appreciated and recognized. This can
be as simple or as extravagant as a supervisor may desire. Often at times short e-mail or quickly stopping by a
team members desk and saying thanks can do wonder for morale. Other options might include a mention in the
company newsletter for outstanding performance or gift certificates to a restaurant the possibilities are endless.
Clearly define what is expected of team members: Nothing can be more frustrating or discouraging for an
employee than the lack of a clear understanding of what is expected of him on the job. In a performance driven
workplace a lack of clarity regarding job duties and expectations can cause fear and anxiety among employees who
are unclear of what is expected of them. The quality of supervision and membership: It has been said so often
that it is almost clich, but people leave, not their jobs. Supervisors play the largest role in a team members
development and ultimate success within an organization. All employees want to have supervisors who are
respectful, courteous, and friendly that is given. But more importantly team member want supervisors who see
clear performance expectations, deliver timely feedback on performance, live up to their word an promises, and
provide an environment where the employee can grow and succeed. Failure by supervisors and management to
provide this can cause an employee to start looking for greener pastures. Fair and equitable treatment of all
employees: One of the surest ways to create animosity and resentment in an organization is to allow favoritism
and preferential treatment of individual team members. The so called good ole boys club can create a noxious
organization culture and foster resentment among team members. This culture will only get worse and can create a
devastating exodus of valued team members. Best employee reward programs: If these rewards are in term of
money, by dividing it into two parts and giving the first half parts with the initial months salary and the remaining
after six months helps in retaining the employee for six months. Career Development Program: Conditional
assistance for certain courses should be provided within the company in which the company will bear the expenses
only if he or she scores a certain aggregate of marks. Performance based program: To get more work out of the
employees, remuneration in the form of bonus helps to retain individuals who are highly productive. It does not add
extra pressure on the companys budget. It can be arranged by cutting a part of the salary hikes.
Employee referral plan: Introducing employees referral plans and giving referral bonus after six to nine months
of continuous working of the new employee as well as existing employee reduces the hiring cost of new employee
as well as helps retention of the existing ones for a longer period of time. Loyalty Bonus: After successful
completion of a specified period of time in an organization rewarding employees with money or position gives

recognition and satisfaction to them. It also gives encouragement to the fellow employees. Giving voice to the
knowledge banks:
important intellectual assets of the company is the workforce. The company should retain it through involving them
in some of the important decisions. Employee Recreation: Involvement of top management along with lower and
middle level management in some recreational activities makes the employee s feel that they are very close to the
management and are treated equality.Gifts on some occasions: Giving some gifts on festivals and special
occasions to the employees make them feel good and realize that the management is concerned about them.
Accountability: Creation of an environment that demands accountability and transparency helps employees to
feel that they are as superiors. This helps in emotional bonding of the employees. Surveys: Conducting regular
surveys, feedbacks from superiors as well as other issues lie morale, development plans, etc. This makes them feel
important and understand that the company really cares for them. Fun and laughter at workplace: Fun and
laughter in a workplace lend a competitive advantage to an organization through its human resources. The
presence of humor in a workplace enables the employees to work with interest and enthusiasm that reduce the
work pressure and attrition level.

New age retention strategies

The retention practices that seem redundant but are still followed in companies. Some practices are like
requesting the employees to pledge their educational certificates, signing bonds for a fixed period (usually for a
period of 12 to 18 months) with a financial penalty clause, pay for . training, and others are early practices , which
are still followed by some companies. The newage retention practice: Social media is the current norm and to
leverage this platform, companies have restored to rewards and recognition , Intranet solution offered by
specialized vendors. Such a tool helps recognize employees instantly across the organization and geographical
boundaries. It also helps in accumulating the points, which could be exchanged through online e-retailers to buy
their choices of goods. Employees who look beyond their remuneration, are able to enjoy the employee value
proportions offered by organizations which provide employees with discounts to retail outlets and their favorite
restaurants just by showing their company identify card. Due to card pressure companies are unable to pay doubledigit yearly appraisals. In such prevailing market conditions, these are innovative, new-age solutions to compensate
the employees in some form while improving retention rates.
Despite modern retention techniques, why is the attrition rate still high? ITeS is still not a favorite industry
for many young people and the society at large. While such perceptions are fast changing, complete acceptance is
still missing due to the challenging working hours, especially in the international BPO space. Also, the gender ratio
is an issue in this industry due to cultural preferences and perceived health hazards. Above all in India, we have a
sizeable number of engineering graduates who take up jobs in ITeS but keep pursuing opening in their preferred
industries and move on. Such issues result in higher attrition rates for ITeS companies.

Summary.
Staff retention is all about keeping those members of staff that you want to keep in the organization. In order to do
this you need to understand what individuals want and also how organizations and work are changing. Analysis and
assessment and measurement will help you understand this and enable you to put in place retention strategies that
will satisfy both staff and organization. No single strategy will work and whatever strategy and strategies you put in
place will need to be reviewed to ensure that their objective are being met. There are cost associated with both
staff turnover and staff retention and you should understand what these are failing to do anything about staff
retention can be very costly indeed.