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ENHANCEMENT OF COMPETENCY &PRODUCTIVITY OF EMPLOYEES
TABLE OF CONTENTS
Sl. No. Contents Pages
1 Executive Summary 1-2
2 Company Profile 3-6
Brief History 7-13
Organisation Chart 14
3 Importance of Human Resources 15-18
HR Practices Carried out in BTPL 19-31
4 Competency
Introduction 30-34
Identification of Competency 35-38
Developing Competency 39-45
Nurturing the Competency 46
Competency Mapping 47-49
Application of Competency in the Industry 50-51
5 Productivity
Production & Productivity 52-54
Measuring Productivity 55-70
Developing the Productivity 71-72
Labour Productivity 73
Improving Productivity 74-81
Application of Productivity in the Industry 82-88
Findings & Improvements 89-93
6 Conclusion 94
7 Bibliography 95
8 Annexure
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1) Name of the student : Akshata B. Nayak
2) College : K.L.S.’s Institute of Management Education & Research, Belgaum.
3) Semester : M.B.A. – II Sem, (2004-05)
4) Concern of the project work : Bharat Tissus Pvt. Ltd., Bommasandra Industrial Area, Bommasandra, Bangalore.
5) Topic of the project Work : A Study of “Enhancement of Productivity & Competency of Employees”.
6) Period of Project Work : 2 months (20th April to 20th June 2004)
7) Organisation Guide : Mr. A. Mutyalu & Mr. Neelkantan
8) College Guide : Dr. Sachin S. Kamble & Dr. Kirti Shivkumar
9) Methodology : Primary Data & Secondary Data
10) Objectives of the Study :
To study the HR practices at BTPL.
To know the present status – quo of productivity & competency of
employees.
To find the scope available in different areas to improve there competency.
To suggest suitable measures for improvement.
11) Analysis of Data
Studied the Printing Department in the organization found out the Problems
and analysed.
12) Findings
Productivity targets.
Water Saving
Working days inducing sampling.
Use of Power.
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Existing Layout
13) Suggestions
An incentive system covering and balancing quality, production &
machine output can be implemented to motivate the workers and improve
overall productivity.
All the materials required can be planned and kept ready near the
corresponding Table before a Lot is started. Searching of Screens etc. can
be avoided during Production time.
One machine can exclusively allocated for sampling work.
Thinking & aligning the thoughts required for the task.
Continuously questioning and aligning the answers required to complete
the tasks.
14) Limitations
All though the project was carried at Bharat Tissus Pvt. Ltd., the department
which was considered for the project was one of the several departments in
the organization and all the departments are not same as for as the scope and
work. Therefore finding of the case analysis of printing department cannot be
applied to other department and this is because of time limit of two months.
15) Scope for further research
To fix targets for employees.
To study how best employees can be fully employed when work is going
with machine.
How best training & development could be carried, so that employees of
this department could be employed else were two.
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Name of the Company: Bharat Silks Groups
Address: 7/1, K. H. Road, First Floor
Head office: Bangalore 560027
Phone: 91-80-2270642 / 2120288
Fax: 91-80-2275776 / 2278634
E-Mail: [email protected]
Owner & CEO: Mr.Shyam Sunder Goenka
Year of Establishment: 1985
Work force: 1500 personnel
% overseas market: 100%
Annual sales: USD 15 Million Dollars
Status of the Company: Private
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MissionCompany believes customer is supreme in the world. Quality and Innovation are the
key words on which the whole business story lies.
To maintain international standards of the products and to capture the world market.
VisionOur vision to innovate empowers your passion to grow.
ObjectivesTrendsetter for women’s wear and trying to emerge as leaders in furnishing in
coming years.
To act as a source of knowledge on silk.
Provide information to new recruits undergoing induction.
Motto is “Experimentation runs the entire gamut”
About CompanyThey have Model Design Studio with 14 CAD work- stations and it is best in India at
present, aiming to make it best in the world. They provide lot of freedom of thought and
expression and allow people to do experimentation.
Expectation from the peopleThey expect students to be research- minded and they have to bring out unusual ideas,
concepts that will result as unique design and customer falls in love at first at first sight.
What business they are into
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Weaving Dobbys and Jacquards, Print developments, Hand painting, Women’s wear
and Embroideries.
Market ScenarioInternational market scenario looks to be competitive and it is moving towards cost
conscious. Even though, they aim to manufacture unique, different and eye-catching product
the sale of product is limited by cost factor.
They are looking excellent professionals, the persons who would develop innovative
quality products with cost conscious-ness.
Corporate PhilosophyWith a view to enter and establish into global arena in silks a 100% Export Oriented
Unit is set-up with highly sophisticated and most modern state of art technology.
The Ideology is,To ensure and maintain International Standard in producing quality fabric.
To capture new market segments in International Arena with brand name of
“BHARAT SILKS”To be a most prestigious corporate body in silks, one of its kinds, achieves the global
fame and name.
Total Quality ManagementThe Company believes and targets to achieve high quality standards and parameters
and also it believes.
Quality Excellence
Quality is value
Quality is conformance to specifications
Finally, it is meeting and exceeding the customer satisfaction.
Corporate StrategyThey believe in staying tuned with latest trends of market in the industry to have a
competitive edge, over other companies.
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They explore the tremendous opportunity and have a vision to progress with
enormous efforts in future years, to make our company a prestigious Global Silk Institution.
Work ethos/corporate cultureA totally new environment that would help the people to develop designs, by
creativity through research and training, matching with trend forecast.
They have recruited people from NID, NIFT and IIT as textile designers, training has
been imparted and learning has been given higher thrust on orientation of CAD/CAM
systems.
They believe in recruiting of young, vibrant individuals, an interesting lot to
contribute best to the Organization.
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Brief History
Bharat Tissus Pvt Ltd was incorporated during 1985 as an associate of Bharat Silks
Groups. Mr. Shyam Sunder Goenka is the key person behind the venture, who has more than
two decades of experience in the field of silk. The company was converted into 100% EOU
with effect from 1994 and is engaged in the manufacture and export of high quality premium
silk fabrics. BTPL is equipped with state of the art technology in production facilities. The
paid up capital of the company is 12.50 crores.The shares are closely held by Mr. Shyam
Sunder Goenka and his family members.
Mr. Goenka, who is a second-generation entrepreneur with rich experience in this
line of activity, is the managing director with overall charge of the company. The company
has employed professionals in the areas of marketing, production accounting, engineering,
human resource and administration. The company has adequate structure/system to take a
variety of task. The promoters have been able to establish a name in the overseas market for
silk fabrics.
The groups consist of Bharat tissues private limited, Bharat silks, Southern sales and
services, Bharat home accessories, Akshay color dyeing pvt.Ltd, Trendy Tissues pvt., Ltd and
evergreen Farm products. Each firm/company is a separate entity. Bharat silks and southern
sales & services are partnership firms whereas the others are closely held private limited
companies.
Aim of the companyBharat Tissus is working toward expanding its already wide market not just in terms
of area but also in terms strata of market. They are working toward capturing larger markets
and catering to the cream of luxury fabrics with exclusive design in-house like Sahco
Hessien, Zimmer and Rhode etc.At the same time cater also to the wider but more predictable
market with fewer profit margins. To reach their goal the company is constantly updating
itself in the fields of technology and designs both.
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Product RangeBharat Tissus deal with a variety of fabrics both for furnishing and apparel. They
deal with printing, embroidery, dobby and jacquard. Printing and embroidery surfaces are
essentially for apparel and its ever-changing seasons. But they also produce printed and
embroidered curtains in lightweight fabric. In printing they deal with screen-printing and
hand painting, and in embroidery they deal with both machine embroidery and hand
embroidery.
As far as weaving is concerned they have dobby, electrical jacquard and mechanical
jacquard which cater to both furnishing and apparel equally. In woven furnishing they
produce, more medium and light weight fabrics and some heavy weight fabrics. For apparel
they produce, jacketing material, and dress material. All of these fabrics are produced
according to the season it is catering to and all of these are in the form of running, material
not finished goods.
InfrastructureThe company has a wide network of departments and workforce, which work
efficiently thus bringing Bharat Tissus headed by Mr.Shyam Goenka to the position it is
today. It has complete weaving unit, printing unit and embroidery unit. Apart from the
workforce necessary for running such large number of machineries, there is wide network of
management staff efficiently running the company. Being a 100% export unit it also has a
well developed marketing force and design studio to meet international standards.
Customer Service
Customers are the focus of company’s attention and service.
Bharat Tissus Pvt.Ltd is committed to supplying them with the best that can be
offered. In view of this, the company is continuously upgrading the product specifications
such as color and design to suit the taste or culture of customers and to respond to the latest
trends in fashion. Innovation is key in BTPL’s success. Infact, 80% of its products are less
than one year old.
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Human Resources
Human Resources in the group are not merely a functional set up but play an active
role as a strategic business partner.
Human Resources mission is to strive to make Bharat Silks the best place to work for
by attracting, developing and satisfying the right talent available.
At Bharat Silks, people are treated as competitive advantage and they continuously
evolve and implement customized Human Resource policies and services, to suit the needs of
the business and the end user.
The Human Resources and Employee Relations initiatives arte focused on the
following objectives:
Human Resources
Redefining Roles and Responsibilities
Relationship and team building
Cost cutting and realigning of business processes
Operation training
Career development of the employees
Reward and recognition of performance and compensation bench marking
Employee Relations
Build credibility through employee friendly transparent policies
Proactively handle employee friendly transparent policies
Strategic down sizing and address non-productive work practice
Build upon morale and empower first line managers and supervisors.
With the continued commitment to research and development, company keeps
striving to improve not only the quality of our products and management, but also that of
workforce. Knowing fully well that success is impossible to obtain without quality human
resources, they periodically provide workforce with advanced training to better prepare them
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in meeting challenges and demands. Apart from that company also create healthy relations
between the management and the workforce. Backed up by excellent management, well-
trained human resources and sophisticated machinery, BTPL has made a name for itself.
Business Development
The company is continuously expanding the production, marketing, distribution
network and services. It is a commitment to satisfy customers by offering them excellent high
quality products at competitive prices, prompt delivery and hospitable services.
Production Process FacilitiesYarn Twisting
The function of any process needs raw material. Yarn is a raw material for any kind
of fabric, so twisting department has a major role to play in the silk industry. The raw
material is imported mainly from China. The raw silk will be in the form of bales, which will
be processed in this department. Here silk is wounded, twisted, doubled, heat set, re-wounded
and will be issued to the dyeing department as per requirement. This is an ongoing process
that can be observed in this department.
Yarn Dyeing
It’s an integral part of this organization and it plays a vital role in getting quality
fabric. The function of this department is to collect the yarn from the twisting department,
dyeing those according to the required color and issuing them to the weaving department.
Warping & Weaving
Warping
Warping is considered as an important function before weaving. This section will
receive the instruction from the product development or from the PPC.A pattern sheet will be
provided in which warp pattern and weft pattern will be mentioned. i.e. the colors used on
warp, how many times the pattern is repeated, the ends required to produce that etc. By this
process required warp sheet can be prepared.
Weaving
Weaving department plays an important role, as the final product i.e. the fabric is
manufactured or the fabric is woven here. The yarn from the dyeing department, which is
used for weft and the warp sheet from the warping section, are converted into cloth by the
interlacement of warp and weft. The weaving will be carried out according to the pattern
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sheet, which will be provided from the product development or from the PPC. After making
necessary arrangements the fabric will be weaved.
Fabric Dyeing
Fabric Dyeing is a department, which plays an important role in producing the
quality dyed fabrics. These fabrics are directly imported and allotted to printing, hand
painting or to the embroidery depending on their requirement. The fabrics that are dyed in
this department are Silk, Viscose, Linen, Nylon and Cotton.
Printing
Printing is a process, which is carried out by using screens; the fabric can be printed
with the desired design and can be used for various purposes. The screens, which are used,
should be prepared with every care in order to avoid the defects in printing. While preparing
a particular design the colors required will decide the total number of screen. The printing
screens will range from one to any number based on the complication of the design and how
attractive it can be.
Sampling
Weaving sampling is an important department in the organization in which the
samples as well as costing and pricing are carried out. Sampling of output of following
departments i.e. weaving, printing, hand painting and embroidery are done in this department.
Sampling is like a library where we can refer the fabrics and can select the hanger based on
the requirement.
Sampling department’s functions are very necessary as the samples done will be
forwarded to the clients through the marketing professionals. Sampling helps the customer to
select whatever they need and will place the order, so a lot of importance will be given to this
department.
Costing is done considering all the parameters. The costing starts right from the
yarns, which are brought and continue up to the finished goods. The twisting costs, the
dyeing processing costs, the weaving costs and the marginal costs are considered while
pricing. The overhead costs are computed and based on the value obtained a profit margin
will be considered and the price will be given to the fabric.
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Laser Studio
Laser Studio caters to color separation and screen making process of the designs
coming in from the design studio. Specialized software called ‘Ramsete’ is used for the color
separation. Each design that comes from the design studio has to go through a series of
operations viz., scanning, image processing, color separation and screen making.
Hand Painting
Hand Painting is a skillful job, which is done by the experienced artists. A lot of
creativity is involved in this department. This department came up with the slogan “Art to
Wear”, initially people used the fabrics for furnishing and for other purposes, but now the
hand fabrics are having great demand in fashion wear.
Printing Design Studio
It’s a department where the art work for the printing design is carried out. A number
of artists and designers will be involved to produce the design for a particular season. The
work will then be sent to Laser Studio where CAD work is carried out and screens are
prepared for printing. So this is a base for printing.
Weaving Design Studio
The main aim of the weaving design studio is to create new innovative designer
fabrics according to current trends keeping in mind the cost viability and production
constraints for both furnishing and fashion.
Fabric Inspection
It is a department where inspection of dyeing, printing and hand painted fabric is
carried out. The inspection of the fabrics is done and it will be analyzed whether it can be
passed or not.
Computer Embroidery
This department develops concepts and developed with new ideas and they prepare a
layout with an artist. Then the creation of new stitches and techniques for the particular
design and selection of suitable base fabric, getting the design punched, controlling the cost if
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necessary and solving problems while punching, and finally making the color ways for the
final design to be made in hangers.
Environmental Awareness
Clean and safe environment are given special priority. They are fully aware that
polluting is tantamount to not only destroying environment but also bringing disaster on the
people living in and around them. In view of this, company has applied water treatment
facility to prevent water and the area surrounding the factory from being polluted or
damaged. Green trees and shrubs planted around the factory convincing the visitors, that
company is environmental friendly.
Utilities
- Effluent treatment
- Energy conservation
- Reverse osmosis
- Environment monitoring system
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Importance of Human Resources
“Manpower” or “human resource” may be thought of as “the total knowledge, skills,
creative abilities, talents and aptitudes of an organization’s work force, as well as the values,
attitudes and benefits an individual involved. It is the sum total of inherent abilities, acquired
knowledge and skills represented by the talents and aptitudes of the employed persons.” Of all
the “Ms” in management (i.e., the management of materials, machines, methods, money,
motive power), the most important is “M” for men or human resources.Itis the most valuable
asset of an organization, and not the money or physical equipment. It is in fact an important
economic resource, covering all human resources-organized or unorganized, employed or
capable of employement,working at all levels-supervisors,executives,government employees,
“blue” and “white” color workers,managerial,scientific,engineering,technical,skilled or
unskilled persons, who are employed in creating,designing,developing,managing and
operating productive and service enterprises, and other economic activities Human resources
are utilized to the maximum possible extent in order to achieve individual and organizational
goals. An organization’s performance and resulting productivity are directly proportional to
the quantity and quality of its human resources.
An organization, whether formal or informal, large or small, is composed of people -
the human resources – who come from different walks of life and who are different from
another in their psychological make up. Human resources consist of the total knowledge,
skills, creative abilities, talents and aptitudes of an organization’s work force, as well as the
values and attitudes and beliefs of the individuals involved in it. They are the sum total of
inherent abilities, acquired knowledge, and skills represented by the talents and aptitudes of
the employed.
The quantity and quality of human resources are modified by such environmental
factors as education, training and development. With the help of acq1uired knowledge and
talents, a human being is capable of producing new ideas, developing and improving capital
goods and modifying the available physical (land) and financial (capital) resources in order to
achieve greater productivity, satisfaction and the goals set by an organization.Capital,national
resources, foreign aid and international aid play an important role in economic growth; but
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none of these factors is more important than efficient pool of well-educated, well-trained and
highly developed personnel, through whose creative efforts the goals of an organization may
be achieved. In this fact lies the importance of human resources.
Human Resources are the most important assets an organization has and their
effective management is the key to its success. This success is more likely to be achieved if
the personnel policies and procedures of the enterprise are closely linked with and make a
major contribution to the achievement of corporate objectives and strategic plans.
The corporate culture and the values organizational climate and managerial behavior
that emanate from that culture will exert a major influence on the achievement of excellence
and it is concerned with integration getting all the members of the organization involved and
working together with a sense of common purpose.
Components of Human Resource Management
Human Resource Organization
Human Resource Organization is concerned with achieving success by organization
design and development, motivation, the application of effective leadership, and the process
of getting across the message about what the enterprise is setting out to do and how it process
to do it. The fundamental objective is to ensure that every aspect of the organization,
employment, motivation and management of people is integrated with the strategic objectives
of the business and contribute to the successful achievement of those objectives.
The programme has to take account of cultural issues so that the desired corporate
culture can be developed or reinforced. More over, organizational development programmes
and interventions are needed to achieve better integration, improve team work, motivate
human resource, develop proper leadership, facilitate communication system, manage conflict
and change and obtain commitment.
Human Resource Planning
It sets out to define how many people the organization wants, but with a particular
interest in the type of people the organization needs at present and in the future, in terms of
their expertise and how they “fit” the corporate culture. It involves the forecasting of both the
supply and demand for future labour. It provides the base for recruitment programme and for
human resource development plans.
Human Resource Systems
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These are the essential programmes needed to recruit, appraise, pay and look after the
health, safety and well-being of the employees in the organization.
The main key programmes are:
1. Recruitment Management
2. Information Management
3. Training Management
4. Performance Management
5. Reward Management
6. Career Management
7. Health and Safety Management
8. Discipline Management
9. Culture Management
Human Resources Development
HRD as a system depends on work itself which generates a higher degree of
responsibility for the employees, the individual’s personal and professional growth, the
improved quality output as a result of increased responsibility and organization as an open
system.
HRD as a function consist of various activity related to training and development and
performance appraisal which plays a significant role in achieving the individual’s growth and
development.
The primary responsibilities of a HRD manager are
1. To act as an internal change agent and consultant.
2. To initiate change and act as an expert and facilitator.
3. To activity involve him in the company’s strategy formulation.
4. To keep communication lines open between the HRD function and individuals and
groups both within and outside the organization.
5. To identify and evolve HRD strategies in consonance with overall business strategy.
6. To facilitate the development of various organizational teams and their working
relationship with other teams of individuals.
7. To try and relate people and work so that the organization objectives are achieved
effectively and efficiently.
8. To diagnose problems and to determine appropriate solutions particularly in the
human resources areas.
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9. To provide co-ordination and support services for the delivery of HRD programmes
and services.
10. To evaluate the impact of an HRD intervention or to conduct research so as to
identify, develop or test how HRD in general has improved individual or
organizational performance.
Human Resource Relationship
It deals with the handling of employee individually and collectively as members of
trade unions or staff associations. Their aim is to increase co-operation and trust and to
involve employees actively in the company’s affairs. It also deals with problem-solving
techniques, particularly to solve problems relating to disciplinary cases and grievances. There
are two sides to a dispute in most organizations; the management and the workers. There is a
gap and the means have to be found to bridge that gap. Whether or not unions exist, it is
highly desirable for the management to develop methods of dealing with employees
collectively. The necessary techniques must be evolved from the encouragement of mutually-
working together in the interests of all. Unions have to be managed like everything else in an
organization. Management normally gets the union it deserves. If it handles unions the wrong
way, the results for the organization can be disastrous. An approach to collective dealing
should be the recognition of the union, the respective role performance of management and
union, the type of procedures one can adopt to regularize relationships with unions, the basic
techniques of negotiating with unions and the mechanism of involvement through
participation, both traditional forms of joint consultation.
Human Resource Management Approach
Human Resource Management has received tremendous attention in recent years.
Broadly, there are three meanings attached to the concept of HRM.In the first place, persons
working in organization are regarded as a valuable source, implying that there is a need to
invest time and effort in their development. Secondly, they are human resources which mean
that they have their own special characteristics and, therefore cannot be treated like material
resources. The approach focuses on the need to humanize organizational life and introduce
human values in the organization. And; thirdly, human resources do not merely focus on
employees as individuals, but also on other social realities, units and processes in the
organization.
There has been great deal of HRM actively in organizations, although most of such
HRM systems are designed without understanding the organization’s structure, tasks,
processes and people. It is imperative for any HRM activity to have a conductive
organizational climate to stabilize such efforts in reality. It is essential that HRM systems are
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designed in the framework of the total organization. HRM efforts fail miserably in such
organizations where no attention is paid to these systems.
HR Practices carried out in BTPL
Man power planning
It is a process by which a management determines how an organization should move
from its current manpower position to its desired manpower position.
Through planning, a management strives to have the right number and the right kind
of people at the right places, at the right time, to do things which result in both the
organization and individual receiving the maximum long range benefit.
As the manpower planning is engaged in all the organization, BTPL is also adopted a
simple system where the receptive department, which is in need of human resource, must
contact to the HR department. Then HR department will start to search the right manpower.
Recruitment
It is one of the important functions of the personnel management to ensure that the
organization has the right number of employees and the right kind of employees at the right
places. The number and nature of employees required by an organization depends upon the
nature of method of work.
It forms the first stage in the processes which continues with the selection and ceases
with the placement of the candidate.
It is the next step in the procurement function, the first being the manpower planning.
Recruiting makes it possible to acquire the number and types of people necessary to ensure
the continued operation of the organization.
It is a process of discovering of potential applicants for actual or anticipated
organizational vacancies.
In BTPL, they are following the campus interview system and whenever in need of
manpower they give the advertisements in newspapers. They also have agreement with some
agencies which are engaged in recruiting the candidates for BTPL. At present BTPL is
recruiting a lot of fresh graduates as they are hard and smart workers and more interested in
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doing work. So I can say that BTPL is the best organization or way to make a fantastic career
for freshers.
Selection
It is concerned with securing relevant information about an applicant. It is a long
process, commencing from the preliminary interview of the applicants ending with the
contract of employment.
It is one of the important functions of HR department. If the right person is selected,
he is a long valuable asset to the organization and if faculty selection is made, the employee
will become a liability to the organization itself. Therefore at the time of selection process
candidates are carefully scanned to fill up the different positions.
BTPL is following a campus interview system and they also have an agreement with
an agency who will find the right candidates for the vacancies arise over here.
Induction
It is a technique, by which a new employee is rehabilitated into his surroundings and
introduced to the practices, polices and purposes of the organization.
In other words, it is a welcoming process the idea is to welcome a newcomer, make
him feel at home and generate in him a feeling that his own job, however small, is
meaningful and has significance as a part of the total organization.
Truly speaking induction is socializing by which the organization tries to make the
new employee as it’s agent for the achievements for its aim and objectives.
Lecture, handbook, presentation, group seminar are used to impart the information to new
employees about the nature of the job and organization in order to make the new employee
acquaint himself with company’s history, strategies, policies procedures, department,
supervisors and subordinates.
In BTPL, they used to conduct an induction programme, for the new employees for
the period of 5-10 days. Almost all the top designation will be there in the progamme, along
with the new employees.
The company has made a wonderful power point presentation where it contains the
brief introduction of the company, various departments, its function, organization chart,
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process etc. So this presentation will be shown to impart the information to the new
employees, trainees etc.
Manpower Development
An employee once gets his job in an organization needs to develop. It’s an
organization’s responsibility to see that whether the employee is developing or not.
The BTPL has set the standards by which an employee has the opportunity to
develop, for this employees needs a developmental program. It can be done through Training
and other management development programmes.
Training
Every organization needs to have well trained and experienced people to perform the
activities that have to be done. If the current or potential job occupant can meet this
requirement, training is not important. But when this is not the case, it is necessary to raise
the skill levels and increase the versatility and adaptability of employees.
Training is a process of learning a sequence of programmed behavior. It is
application of knowledge. It gives people an awareness of the rules and procedures to guide
their behavior. It attempts to improve their performance on the current job or prepare them
for an intended job and it’s a short term process utilizing a systematic and organized
procedure by which non-managerial personnel learn technical knowledge and skills for a
definite purpose. The success of every organization, to a greater extent depends on the
amount, qualitative and timely training is to be provided.
BTPL is providing excellent training programme to both the new as well as existing
employees. It conducts the training programme to its new employees for the period of 6-12
months and also engaged in conducting the Training & Development programme to its
existing employees every now and then. They are inviting designers, artists from various
countries to get the training from BTPL employees and it’s a wonderful for both BTPL
employees and designers from outside to learn about the new designs, the taste of different
country. BTPL is more interested in conducting the developmental programmes to develop
employee’s skills and competence.
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Motivation
It is the process of creating organizational conditions which will impel employees to
strive to attain company goals. It plays a key role in all type of organization. The organization
has to identify the unsatisfied needs of its employees and try to satisfy them. And it is a way
of getting work done by others. BTPL use to give increment to those employees whoever
performs well in their work, which will be known by the results of Performance-
Management- Systems. Promotions are also depended upon it.
Communication
Communication is one of the most basic functions of management. The manager can
make a good decision, think out well conceived plans, establish a sound organization
structure and even be well linked by his associates. It forms a basis for management by
objectives, long range strategic goal setting and policy formulation, strategic planning,
organization development and organization effectiveness, control decision making and allied
managerial activities aimed at effective achievement of organizational goals.
Through a proper communication, the managers would be able to study the
understanding and reaction of the subordinates and create a congenial atmosphere so as to
induce the subordinates to put in best of their efforts in accomplishing their tasks.
It can be effective if an opportunity is not given to the subordinates to express their
views.
Managers and subordinates in BTPL discuss before deciding matter. Management
would like to have a glance over the viewpoints or suggestions collected by its subordinates.
BTPL is following an open door policy where it doesn’t have any restrictions or barriers in
between top management and in its workers and they can approach his managers directly
because Open communication enhances the comfort levels of employees apart from making
them feel worthwhile.
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Performance-Evaluation
It is a method of evaluating the behavior of employees in the work spot, normally
including both the quantitative and qualitative aspects of job performance. The various
factors to be taken into account for rating the Performance-Evaluation of employees, such as
quantity and quality of output, knowledge of the job, ability to do that job, personal qualities
like spirit of co-operation, reliability and dependability, supervisory qualities like leadership,
initiative, self confidence, judgment, analytical abilities, decision making abilities etc. Each
of these factors is given certain marks and the total of such marks gives the rating of the work
of performance.
Performance appraisal is a dynamic process. Variables and complexities pertaining to
the situation in an organization should be given due wait age. The parameters like quality
production, productivity, utilization and attendance percentage will remain the same. The
degree of importance might/can varies as per the needs of the organization from time to time.
Any appraisal system should be simple, realistic, effective and easily measurable.
Subjective factors/Subjective assessment is bound to be there in any appraisal system. But
this doesn’t mean that an appraisal system is a subjective and academic exercise.
On the contrary it’s the most important exercise performed in an organization
towards measuring performance.
BTPL is applying its own developed method of performance-Evaluation called it as
performance appraisal system (Rating-Method). BTPL conducts this performance-Evaluation
for every year. Employee gets Increment/Promotion according to his performance-ratings.
There is increasing recognition that people are key to corporate performance.
Thus, performance measurement like leadership, excellence, ability to innovate,
attention to customers etc is necessary.
Organizations need to meet transparency concerns as well as drive maximum value.
An organization needs to measure and report the impacts of its people policies and, in
particular, the value that derives from them.
BTPL has prepared a performance appraisal sheet for management and non
management is enclosed,
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And BTPL is in process of preparing an evaluation sheet for workers also.
Bharat SilksPerformance Appraisal for Management Staff
Name:
Designation:
Emp.Code:
D.O.J
Qlfn:
D.O.B:
Location:
Grade:
Years of service:
Company:
Group:
Total:
Period of appraisal: From: To:
1. Key responsibilities handled during assessment period?
2. Significant Contributions during the assessment period?
3. Areas of strength?
4. Areas of weakness together with key improvements required?
5. Action Plan for development?
Rating Scale:
5: Exceeds target expectations 2: Contributes to target expectations
4: Achieves target expectations 1: Below target expectations
3: Meets target expectations
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Factors (Please rate the
following wherever
applicable)
Rating Remarks
Job Knowledge 5 4 3 2 1
Quality of work / output 5 4 3 2 1
Analytical ability 5 4 3 2 1
Commitment 5 4 3 2 1
Planning 5 4 3 2 1
Organizing 5 4 3 2 1
Team work / Participation 5 4 3 2 1
Presentability 5 4 3 2 1
Adaptability 5 4 3 2 1
Integrity 5 4 3 2 1
Cumulative Rating 5 4 3 2 1
i. Personal Characteristics
1 Acceptability 5 4 3 2 1
( Consider carriage , manners, poise, tact, expression, courtesy etc. Does he create , on the
whole, a favorable general impression?)
2 Maturity 5 4 3 2 1
( Consider emotional make-up. Does he normally appear stable and relaxed ? Does he usually
keep his emotional expressions under control? Can he take criticism and set-backs.?)
3 Discipline 5 4 3 2 1
( Consider the way in which he carries out self- discipline. Does he observe discipline
always? Is he punctual in terms of attendance, timings, etc.?)
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ii. Social Effectiveness:
1 Relational Skill 5 4 3 2 1
(Consider ability to get along with people. Is he liked and respected? Does he have a
sympathetic and understanding approach to people? Can he listen to others without bias? Do
others show a willingness to associate themselves with him?)
2 Communication Skill 5 4 3 2 1
( Consider skill in expression. Does he use good English/ local or a language understood by
majority of the people? Can he present ideas accurately in an orderly sequence and in a
convincing and effective manner?)
iii. Approach to Learning situation
1 Ability to derive benefits from learning: 5 4 3 2 1
(Consider the extent of willingness & skill shown in getting maximum benefit from training.
Is he eager, attentive, persistent, & quick at grasping, things? Can he see deeply into a
situation, process, method, etc. or is he content with superficial explanations?)
2 Ability to Contribute to learning situation: 5 4 3 2 1
(Consider his ability to evaluate what has been taught or what he has observed himself. Does
he show concern with more information or does he try to look at things from new angles,
showing vision and imagination? Has he offered constructive criticism and suggestions? Has
his general behavior contributed in any way to the efficiency and good relationships in the
concern?)
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IV. Work performance
1 Initiative & Ingenuity 5 4 3 2 1
(Consider the extent of willingness shown in assuming responsibilities. Has he shown any
remarkable urge to work? Has he shown a spirit of enterprise and a tendency towards
development on his own?
2 Proficiency & Dependability 5 4 3 2 1
(Consider the manner in which he carries out duties and responsibilities. What degree of
intelligence, speed, accuracy, resourcefulness, etc. Does he show in performing task
entrusted to him? Besides the above, the following also needs to be rated after appraise
has taken charge of his actual job/assignment/section.
V. Management Skills
1. Decision making Ability 5 4 3 2 1
(How is he taking initiative to conclude issues to it’s logical end. Risk bearing
capacity.)
2. Executive functions: 5 4 3 2 1
(How is he on his executive ability to plan, organize, direct, control, and review
the resources under him?)
3. Problem Solving Skill: 5 4 3 2 1
(How is he on his ability to identify, screen and solve problems related to men,
machine, material, method, wastage, etc?)
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4. Approach to Quality and Productivity:
5 4 3 2 1
(Does he have a commitment to wards quality and productivity? Has he taken any
concrete steps for improving these? )
5. Approach to Systems/Methods/ Discipline/Safety / Housekeeping :
5 4 3 2 1
(Does he have a positive approach towards system & methods, discipline
safety, and housekeeping? Does he have a concern to address these issues and
improve? )
Overall assessment about the employee : 5 4 3 2 1
Sign of the Appraiser Name / Manager
Comment of reviewing authority \ Unit Head
V.P. Group –HR
M.D / Director
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Bharat Silks
Performance Appraisal for non-Management Staff
Name:
Designation:
Emp.Code:
D.O.J
Qlfn:
D.O.B:
Location:
Grade:
Years of service:
Company:
Group:
Total:
Period of appraisal: From: To:
Rating Scale:
5: Exceeds target expectations 2: Contributes to target expectations
4: Achieves target expectations 1: Below target expectations
3: Meets target expectations
Factors (Please rate the
following wherever
applicable)
Rating Remarks
Job Knowledge 5 4 3 2 1
Quality of work / output 5 4 3 2 1
Analytical ability 5 4 3 2 1
Decision -Making 5 4 3 2 1
Communication and
interpersonal skills
5 4 3 2 1
Planning 5 4 3 2 1
Organizing 5 4 3 2 1
Team work / Participation 5 4 3 2 1
Initiative and drive 5 4 3 2 1
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Commitment 5 4 3 2 1
Presentability 5 4 3 2 1
Adaptability 5 4 3 2 1
Integrity 5 4 3 2 1
Cumulative Rating 5 4 3 2 1
Overall assessment about the employee : 5 4 3 2 1
Sign of the Appraiser Name / Manager
Comment of reviewing authority \ Unit Head
V.P. Group –HR
M.D / Director
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Welfare Measures
Welfare Measures are exhaustive and extensive and they are influenced by number of
factors like general economic conditions in the country, level of education of the workers,
social environment, customs, labour laws, attitude of the employees etc. These welfare
facilities vary from organization to organization. They are better known as ‘Fringe- Benefits’.
These are the benefits provided by the employers to their employees; these are those
monetary and non-monetary benefits given to the employees during and post employment
which is connected with employment.
Fringe-Benefits covers bonus, social security measures, retirement benefits like
provident fund, gratuity, pension, housing, medical, canteen, consumer stores, financial
facility etc. These benefits are provided to create and improve sound industrial relations, to
boost-up employee morale, to motivate towards work and to create a sense of belongings
among employees and retain them.
BTPL, is having a Fringe-Benefits- Policy to it employees which are as follows,
Increments, medical facility, Employee Deposit linked insurance, Leave travel allowance,
Gratuity, Free accommodation facility for workers, Transportation facility for staff, Night
shift allowance, Wedding gifts, Management training, Safety equipments, Uniforms, Shoes
etc. All the employees of BTPL are happy with the present ‘Welfare-Measures-Policy’. And
the company is planning to provide the facilities like group health insurance scheme, group
personal insurance scheme, Service award (On completion of 5,10 and 20 years of service),
Co-Operative society etc.
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Competency Introduction
Have you ever wondered why the rush hour is so slow? Or why an elevator brings
you down? Or asked why the king of hearts in a pack of cards is the only king without a
mustache? Or why mosquito repellents are called so when they don’t exactly repel? Probably
everybody saw apples fall, but only Newton asked why. Why I am mentioning all these
things here because questioning leads to activation of thinking. While thinking definitely
there will be lots of brain storming, reengineering, self motivation, use of creative instincts,
adventurous, willing to take risks, ready to try something new and always up to challenges.
Ultimately it improves the analytical, interpersonal skills, decision making ability, which is
nothing but a Competency.
In today’s highly competitive environment, competency matters and the organization
that makes the best use of the talent available to it as well as that which attracts talent will
emerge as the forerunner. Thus, the management of talent has assumed strategic proportions
and corporate the world over are using structured competency frameworks to make people-
related decisions.
What is competency and what it constitutes?
Competence refers to abilities based on tasks or job responsibilities.
Competency refers to abilities based on behavior. These are the characteristics of the persons
who are doing the job.
Competencies are the characteristics of manager that lead to the demonstration of
skills and abilities, which result in effective performance within an occupational area.
It also embodies the capacity to transfer skills and abilities from one area to another.
Talent may mean the following:
Natural endowment or ability of a superior quality.
A specific mental or physical aptitude; an innate ability to perform successfully in a
particular field.
Gifted people collectivity.
It would appear to mean that the organization is looking for someone who does
things in a manner that is instinctive and different from that of others, yet in a way that is
distinctly better than that of others.
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Commonly occurring competencies in organization
1. Intellectual
These competencies that are related to mental processes are best seen in individual
exercises, particularly in paper and pencil type exercises. However, interactive exercises
should not be ruled out for eliciting behaviors related to the cognitive competencies, as they
provide real-life-like situations in which impromptu reactions to unexpected situations are
required.
Various types of Intellectual competencies are,
Comprehension
Analytical Ability
Innovation
Decision Making
Planning and Organizing
Strategic Perspective
2. Interpersonal
These social competencies are best seen in situations which closely resemble those in
which these competencies will be used. These are interactive exercises, which could be an
equitable mix of group and one-to-one exercises. However; it may be prudent to bear in mind
that assigned leadership or assigned role types of exercises may inspire behavior different
from the participant’s typical behavior.
Various types of Interpersonal competencies are,
Communication
Adaptability
Interpersonal Skills
Ability to influence others
3. Dynamic
These competencies are best seen in situations where there is a certain amount of
stress created. This stress may be externally imposed, but in reality, stress is created
internally in the participant’s mind tends to elicit better and more characteristic examples of
behavior.
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Various types of Dynamic competencies are,
Initiative
Drive
Resilience
Stress Resistance
Result Orientation
4. Business Related
The requirement here is to create situations which are similar to the situations faced
in the normal course of business.
Various types of Business Related competencies are,
Business Understanding
Customer Focus (could also belong to the interpersonal group)
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Identification of Competency
The competencies identified as being relevant to the organization constitute the talent
that may be required by the organization, which are yet to be identified. It may be beneficial
to examine the business of the organization independent of its people as well as similar
business in order to ascertain if there are any more areas of innate capability, which would
help the organization in its business.
Once the constituents of the talent required by an organization have been identified,
the search for talent within the organization begins. The quest for talent within the
organization consists of locating the people who have the requisite competencies that
comprise talent in the organization.
The methods of uncovering the talent in an organization are the same as those meant
for measuring competencies. In the era of competing through competence, many knowledge
driven industries have recognized that competence has to be managed strategically.
Organisations are using structure competency frameworks to make a range of decisions about
their executives while a variety of tools are available to assess employee potential and some
of them are,
Competency-based Interviews.
Performance Appraisal Ratings (if these are based on competencies)
Psychometric Instruments.
Work Ability Tests.
Assessment Centers.
Competency-based Interviews
The interview when it is structured in a manner to bring out the competencies is an
effective tool of assessment. It is likely to be affected by the biases of the interviewer, the
candidate may project a favorable façade and thus the interview suffers from a slightly lower
validity and may be prone to errors of assessment.
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Performance Appraisal Ratings
The ratings from the performance appraisal would be of use in the search for talent
only if the ratings are based on competencies. Appraisals based on quantitative performance
parameters cannot be used for this purpose since they show little of the person’s innate
qualities and more about the quantitative output which can be influenced by a number of
external factors.
Psychometric Instruments
Psychometric Instruments may also be used in the selection of talented people in the
organization. These are mostly self-reported and hence the possibility of a candidate ‘beating
the test’ continues.
Work Ability Tests
Some of the well-designed work ability tests are quite effective in measuring the
abilities that they claim to measure. However, though these may be of use in uncovering
talent at a lower level, where specific skills are required, they may prove less effective at
higher levels where the level of ambiguity increases.
Assessment Centers
This method is one where the focus is on competency and the result is predictive. The
assessment centre method produces good results in most cases, as the validity of a well-
designed centre is the highest among the methods described above. However, in case the
competencies required are those that are not easily manifest in the assessment centre itself,
another method for the measurement of these competencies will have to be added on.
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Assessment Centre as a part of HR Strategy
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Late
ral M
ovem
ent
Conceive organization’s mission
Strategy to achieve mission
Identify competencies required for high
Performance in context of strategy
Design assessment centers to measure identified
Competencies
Determine Present state of organization
Determine gap between desired and essential competencies
Stimulate developmental needs
Design and administer development and Training system
Career and succession planning
ENHANCEMENT OF COMPETENCY &PRODUCTIVITY OF EMPLOYEES
There are certain questions which need to be a swered in order to have a definite
picture of the variables that required to be addressed during the exercise.
1. Who are the people for whom the assessment centre is intended?
This should also include the levels or positions above the target population in the
organization. So that the potential for occupying these positions too can be evaluated.
2. What is the assessment centre intended to achieve?
The purpose of the assessment centre is of paramount importance. The competency
definitions identified should meet the requirement.
3. Who are the successful people who can define what behavior lead to success in
the organization and who are the average people who follow the role definitions but
meet only moderate success?
It is only by comparisons of these two that behavior that differentiates between
successful people and mediocre people in the organization can be found.
4. Are the behavior and performance that are valued as leading to success now the
same as these which will be valued in the future?
This envisages any major changes in the culture of the organization foreseen in the
future.
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Developing Competency
The development of talent is no different from the development of competency.
However, in the case of talent, the organization will have to concentrate not just on the
disparity between the present level of competency and the desired level of competency, but
will also have to work on the strengths of the participants revealed by the selection process.
The identification process must, therefore, aim not just at identifying the talent but also at
identifying the area in which these people are talented. Thereafter the organization must give
them the wherewithal to utilize their talents in the manner best suited to the interests of the
organization. The effort should also be to channellise the strengths of the person so that he is
able to capitalize on them. This may involve a lateral movement of the person to a position
better suited to his talents. It may also involve restructuring of a job to accentuate the
particular talents of the individual.
“If you don’t like the weather, stick around for a few minutes and it will change”
Businesses might not change that often, but they are changing, and changing more
dramatically than ever before. And through it all, employees are having a difficult time
keeping with the multiple and changing hats they are being asked to wear.
But today’s dynamic business environment, how can companies focus on enhancing
employee competencies when change is the only constant? Through timely, up to date
learning content that links competencies to a company’s performance objectives, companies
can keep their employees qualified for the challenges ahead. By focusing the limited time and
resources dedicated to learning on key competencies, companies can feel secure in knowing
that the learning content they do provide has a direct impact on the company.
A competency-based training development process ensures a strategic focus and
achievable scope, leading to greater learner involvement and motivation. So what is
development process? The development process incorporates these steps:
Develop performance maps
Conduct star performer focus groups
Document skills tables for key competencies
Assess current learning content against skills tables
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Create competency development guides
Develop Performance Maps
A performance map is a visual representation (similar to chart) of the links, or the
line of sight, between a role, the critical competencies for that role and overall corporate
business goals.
Performance maps identify how each role within a department directly impacts the
success of the overall company. They also identify the critical competencies employees need
to master within a role if they are going to help the company meet its performance objectives,
or business scorecard.
Performance maps display how each employee plays a role in reaching company
goals. This emphasis on individual contribution helps employee understand the importance of
their key competencies. By focusing on the competencies that are most critical in driving
business success, employee development remains aligned with the strategic company goals.
The result is competency-driven learning content that directly supports company performance
objectives.
Focusing on key competencies also helps avoid the creation of laundry lists of skills
and knowledge that can be overwhelming for both employees and their leaders.
The performance maps usually focus on four standard categories that companies use
to measure and communicate their success. These categories include company financial
objectives, process improvement objectives, customer satisfaction objectives and employee
satisfaction objectives. Each one of these categories links objectives from the company level
to the divisional level to the role so that the key competencies can be clearly identified.
Conduct Star Performer Focus Groups
Once the performance maps are created, the learning organization conducts focus
groups with star performers to validate the maps and further clarify the key competencies.
The star performers are employees who continually succeed in the roles identified on various
performance maps. The focus groups are conducted similar to the format of a behavioral
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interview. Star performers are asked to provide specific examples of how they perform the
critical competencies identified on the performance map for their role.
Document Skills Tables for Key Competencies
Based on information gathered from the focus groups, the performance maps are
finalized and summary skills tables are created that clearly define the key competencies. The
skills tables contain examples gleaned from star performers during the focus groups. The
skills table should clearly communicate the actions star performers execute on a regular basis
that enables them to excel within their positions.
Assess Current Learning Content against Skills Tables
From the skills tables, the learning organization identifies learning content materials
that exist within the region, across the company and externally that directly impact the key
competencies listed on the performance maps. If the skills tables are documented properly
and include action verbs that help describe degree of mastery, learning organization can
quickly review existing learning content to determine what portions still meet the needs of the
organization.
From this review process, companies can easily determine what portions of existing
training materials need to be enhanced replaced or remain the same. From the skills tables,
learning organizations can quickly develop the necessary performance objectives for any
materials that may need to be developed or purchased off the shelf.
Create Competency Development Guides
From the skills tables, learning organization also creates a competency development
guide for each role represented on a performance map. The competency development guide
contains statements and examples regarding the key competencies listed on the performance
map as executed by the star performer.
It is recommended that employees meet with their leaders to discuss their
competency development guide results and potential learning content opportunities. At that
time leaders can also discuss any on-the-job opportunities that target the critical items
highlighted on the competency development guide.
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Results to Expect
Through the competency-driven training development process (performance maps,
focus groups, skill tables, competency development guides), a company is assured that its
learning content investments are strategically linked to business goals. Companies also
achieve consistent, measurable performance improvement by focusing on the key
competencies that most directly impact organizational goals.
As the time change and companies adjust, performance maps, skill tables,
competency development guides should be updated to reflect company financial objectives,
process improvement objectives, customer satisfaction objectives and employee satisfaction
objectives. Once these documents are created, their maintenance should require only a few
days every 12 to 18 months. The update process should trigger a review of the competency
driven learning content to ensure that it reflects the, most current goals of the company.
Company employs a Learning Management System (LMS), it is recommended that
the distribution of the competency development guides and the linking of the competency
driven learning content take advantage of the LMS infrastructure. Through the LMS,
employees can quickly access the competency development guides and then review the
available leaning content. The LMS can also track the needs regarding the learning content
and help learning organizations forecast future trends.
For companies to survive, not to mention grow, in today’s dynamic business climate,
workforce employees must master key competencies. And as key competencies that are
directly linked to company performance objectives are mastered across the organization, peak
performance will become a reality.
Various methods to develop the competency
The management development programme should follow a series of integrated
activities.
There are a number of distinct activities that can lead to development in the
participants. However, since the participants will generally have different developmental
needs, a variety of activities are required leading up to the development of the participants.
The various types of developmental activity can be competency based workshops, job
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rotation or enrichment, project based learning-learning programmes and Open University
programmes. In addition to these, there may be the requirement of counseling to cater for
problem areas.
Competency based workshops
These workshops specifically designed for the enhancement of certain competencies.
The best workshops are those that concentrate on a single competency at a time. The
workshops must be designed to enhance the competency of the participant and the
understanding of the competency may follow as an after-effect and is not the main objective
of the programme.
The competencies covered by the workshops will be the same competencies which
are covered by the assessment centre and are thus relevant to the organization. Hence it is
always advisable to invest in designing an entire set of competency-based workshops. The
major advantages of this approach are many. The workshops are directly related to the job
content and to the behaviors expected to enhance the competency of participants. It tends to
be small and specific and thus the participants do not have to be spared for long period of
time.
The competency based workshops can be used in tandem so that one competency can
be enhanced before addressing the next and so on. The system is an ongoing process and the
competencies are continuously upgraded.
Job Rotation or Enrichment
In organizations where people are generally static at their functions and jobs, the
exposure they get is severely limited and the possibility of bettering one’s competencies by
experience reduces considerably. People who have had a better exposure always appear to
have a higher level of competencies. Organization can take advantage of this phenomenon by
exposing their people to a greater variety of jobs. This can be done either by job rotation or
job enrichment.
Job rotation should be done in a systematic manner with the rotation so organized
that people are familiarized with each function in turn and rotated so that the entire range of
function is covered.
Job enrichment is the extension of the work so that the boredom that may set in from
repetitive work does not affect the incumbent. This also serves to extend the participant’s
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exposure and the effect is the same as that of job rotation, though at a lower scale due to the
limited exposure.
Project based Learning
There are numerous recorded instances of learning schemes based on action-oriented
programmes. The scheme, which has been outlined in the job enrichment system, can well be
used for the type of learning. However, project based learning needs to the designed with the
objective of eliciting a particular competency, or a set of related competencies and the
implementation must also be planned so that the desired competency is highlighted.
Project-based learning will have to be facilitated extensively to produce the results
that are desired. However, the success or otherwise of project-based learning is totally
dependent on the willingness of the participant to absorb this knowledge. The participants
should be eager to learn from the project and the facilitator can optimize the learning by
directing the participant to the desired behavior and outcome. In fact this method lends itself
to another very effective method of learning-mentoring.
E-learning
An increasing number of large organizations are providing their employees an
opportunity of further learning through the internet and also through intranets in the
organization. This method is particularly effective because it provides the employee with
information, which is closely targeted to the objective of the organization. It can be used to
provide competency based exercises and projects to the participants. A further benefit of this
method is that the competency based exercises can be used by the employees even in their
own time. The system provides a real time evaluation of the progress made by the participant
during the e-learning course and this can then be monitored closely to ensure that the desired
result is achieved. E-learning can be a very powerful tool and organizations are progressively
turning to this to improve the competencies of their employees.
Open University Programmes
Most participants are active managers and cannot be spared to attend formal courses
to upgrade their skills. Hence the availability of Open University and other correspondence
programmes to improve their theoretical knowledge are very welcome and can be effectively
used. The participant along with the HR department of the organization must examine the
various programmes on offer for content, quality of study material, correction of assignments
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and most importantly the effectiveness of the contact programmes offered. The utility of the
employees is thus vastly increased and the organization benefits through the exposure to the
best practices in the industry that are learned here.
Monitoring the Progress
The progress made by the participants in the development process must be monitored
continuously for it to have any appreciable effect. The ultimate objective of the organization
is to have the best people for the job when and where it needs them. With this objective in
mind, the organization must maintain records of the participant’s performance in the
assessment centre. Records must also be maintained of the development process he was
exposed to and the progress made on these development processes, in particular the
improvements made by the participant.
The monitoring process must be continuous if there is to be any benefit to the
organization and to the individual. The system instituted should also consider the career
aspirations of the participants. Once this is done, the system is capable of handling the career
and succession planning functions of the organization.
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Nurturing the Competency
The nurturing of talent is possibly the most difficult part of handing talent in an
organization. Talented people are sensitive and easily suffer slights, both real and imagined.
Thus, care must be taken while dealing with them. It is important to recognize and reward
talent in order to encourage them to use it for their own good as well as for the organization.
There are a number of means by which the organization can nurture talent such as:
Recognition Schemes
There is a system whereby any act of furthering the business of the organization
through innovative means is given due recognition and the initiator is feted publicly. This
gives the talented person the feeling of being recognized and appreciated. In one
organization there was a board put up near the assembly line where the photographs and
citations of employees who had contributed significantly to the organization were displayed.
Rewarding Talent
Monetary rewards are as important as recognition and accelerated promotions. At the
same time, it must be ensured that talented people are not promoted out of their areas of
competence. Thus the organization has to perform a delicate balancing act to be able to
handle these valuable yet sensitive people.
The organization needs to give them the feeling that they too are valuable to the
organization and that their contribution too is appreciated.
Thus the organization will also have to institute special schemes for people who are
functionally competent and also for those who have been performing at a high level, although
they may lack the potential for further advancement in an organization. This dual recognition
of people who are talented and those who are not, but are yet competent will serve the
organization well in taking care of the issue of the management of talent.
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Competency Mapping
A competency is a practical ability that is informed to some degree by theoretical
understanding; this is a much better model for assessment than any purely conceptual model.
Competencies for job classification
Components
What is a competency based job classification model?
A competency model is a human resource tool that outlines for employees the
particular combination of knowledge, skills, and characteristics needed to effectively perform
a role in an organization. These competencies are observable and can be objectively measured
through defined behaviours. They provide narrative descriptions of standards and summarize
job competencies that have broad application to many types of jobs. Competency models help
define career strategies for employees by providing different levels through which employees
can potentially move as they gain additional skills and knowledge that clearly meet a business
need. Such models aid management in employee selection, training and development,
appraisal, and succession planning.
What is the competency matrix that is used in competencies for job
classification?
The matrix consists of five levels of competencies with behavioral measures for each
competency. The competencies chosen mirror those in the staff Review and Development
plan and all contribute to the achievement of the organization’s strategic business objectives.
The competencies build in a logical, measurable manner from one level to another. The five
competencies measured are effective knowledge, Accountability and self management,
Teamwork and Leadership, Communication and innovation & Problem-solving.
How will an employee be assigned to a level in the competency matrix?
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A job profile for each category will provide examples of typical work activities and
examples of skills and activities that characterize each level. Managers will assign each of
their employees to appropriate levels based on the competencies as defined in the job profile
for their particular position.
Why is there a separate matrix for management?
Having a separate matrix for management positions recognizes the administrative
aspects and the breadth of such positions. Both matrices contain the same functional
competencies with the management matrix adding competencies in areas such as strategic
planning and resource management.
What is the relationship between the five levels and the current levels of
management such as supervisor, manager and director?
There is no direct link between the current titles and the five levels. All jobs that are
included in the management matrix will use the same manager profile. However, working
titles will not change so titles such as supervisor and director may still be used.
Advantages of competencies for job classification
Competency models support the organizational needs and mission is to recognizing
the characteristics, skills and knowledge demonstrated by employees. The current system is
hierarchical and fosters the perception that position upgrades are the only way to be
recognized for strong performance within a job. The reduced emphasis on grades in the new
Smodel focuses employees on job competencies needed for advancement. Competency model
provides management with a tool for evaluating, developing, and compensating employees
appropriately. Understanding our position in relation to the market, in addition to maintaining
internal equity, aids in recruitment and retention of staff, therefore improving morale and
reducing turnover and its associated costs.
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Application of competency in the industry
Competency starts from the alignment of thought process. The thought process and
continuous questioning should be aligned and coherent towards the task on hand.
A staff’s competence can be steadily improved by applying the following steps
thinking and aligning the thoughts required for the task.
Continuously questioning and aligning the answers required to complete the task
Starting with the end in mind
The complete thought process and questioning should lead to achieving the end
(target) Handling tasks on a continuous basis leads to wide exposure, broadening of lateral
and logical thinking. Always handling new tasks and completing it within dead line becomes
a practice and habit. This is nothing but competence. E.g. A staff working as a technical
officer in an organisation can become competent/trend to be competent by assigning
continuous tasks/projects like,
Task A
Which machine is better suited for twisting silk yarn, technical parameters of the
machine, its features available, machinery cost, power consumption level and manufacturers
after sales service facility and reputation. This data has to be collected, analyzed covering at
least three manufacturers of twisting machine. The past experience with the existing twisting
machine also has to be factored in before arriving at a decision. Immediately after completing
task a, task b should be given to the technical office.
Task B
Preparing an improved weaving layout taking all the determining factors- material
flow, optimum utilization of cubic space, feasibility of integrating warping section along with
weaving department etc. into considering while preparing the layout.
The following has to be thought about and worked out
a) Linear/ non linear arrangement of machines.
b) Space between 2 machines
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c) Material flow feasibility/ convenience between machines and in alleyway.
d) Whether any extension of space/bay is required, justification for such space/ bay, how
economically that bay can be extended/constructed etc.
After completing the Task A and B, logically the next task should be given to the
technical officer and it should be an on going process.
Questioning, corrections and directions wherever necessary should be given by Vice
President technical and the tasks should be endorsed and certified ok by Vice President
technical.
When the technical officer is continuously exposed to the above given kind of
working and tasks, 2 to 3 years down the line he becomes a totally competent technical
officer with potential for higher responsibilities.
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Productivity Production and Productivity
Among all the functional areas of management production is considered to be crucial
in any industrial organization.
Production is a process by which, raw materials and other inputs are converted into
finished products. In other words production is manufacturing.
Production and operations management includes series of activities such as product
design, forecasting, organizing, physical facilities, quality control, plant maintenance,
materials management and the like.
All the activities need to be so organized and implemented that, the firm should
realize increased productivity. It is the productivity of men and other resources that speaks
about the substantiability of the individual firm and of the growth of an economy.
Production refers to the total output. Productivity refers to the output relative to the
inputs.
Productivity is a measure of efficiency with which resources, both human and
material, are converted unto goods and services.
It is measured in terms of output per man-hour. It is not due to labour efforts alone.
Technological improvements, better organization and management, greater ingenuity and
skill by labour are all responsible for the increase in productivity. Actually; productivity
measures the contribution of all resource factors-men, machines, methods, materials and
management. No productivity index can be devised which will measure only the productivity
of a specific factor of production. Another problem is that productivity can be measured at
several levels-jobs, plant, industry or national, economic level. Thus, although theoretically it
is a sound compensation criterion, operationally many problems and complications arise
because of definitional measurement and conceptual issues.
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Stated more clearly, productivity refers to the amount of goods and services
produced with the resources used. Productivity is a maximization of available resources.
Productivity is measured with the help of a formula which runs as follows,
Productivity = Quantity of goods and services produced
Amount of resources used
As the equation indicates, there are two variables in measuring productivity the
amount of production and the amount of resources used. Productivity varies with the amount
of production relative to the amount of resources used.
MAINTANANCE ADMINISTRATION PRODUCTION
PRODUCTIVITY
QUALITY SERVICE OTHERS
Productivity is interrelated with production, quality, administration, services,
maintenance and others. All leads to increasing the productivity. So all the above components
should be in balanced.
Types of Productivity
Labour Productivity
Machine Productivity
Capital/Finance Productivity
Raw material Productivity
Power/ Electricity Productivity
Faster rate of economic growth can be ensured through accelerated production and
higher productivity in, all branches of economic activity. Human resources, being an
important input, their productivity play a significant role in determining the overall economic
growth of a nation.
Apart from the level of human skills, the quality of raw materials and the technology
employed are also responsible for productive human resources.
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Productivity can be increased in several ways namely,
1. Increase production using the same or a smaller amount of resources.
2. Reduce the amount of resources used while keeping the same production or
increasing it.
3. Allow the amount of resources used to increase as long as production increases more.
4. Allow the production to decrease as long as the amount of resources used to decrease
more.
Whichever the method, productivity needs to be improved, as increased productivity
contributed to the competitive advantage of an organization. When productivity increases, the
company can pay higher remuneration to its employees. Improving productivity also means
getting more from the given inputs. Higher productivity does not mean adding more inputs
but using the resources better. Improving productivity does not mean working harder; it
means working smarter, mot just doing things right but doing right things.
Today’s economy demands that, we do more with less- fewer people, less money, less time,
less space and fewer resources in general.
Productivity benefits the whole economy, besides contributing to the success of the
organization. Any economy is made up of multiple organizations and if all organizations
prosper because of increased productivity, economy itself tends to benefit.
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Measuring Productivity
As stated earlier, Productivity refers to the output relative to the inputs. Inputs in any
production process comprise capital, labour, materials & energy. Productivity of each
resource can be measure separately.
Such measurement gives partial productivity. Productivity of all resources put
together gives productivity on the total factor basis.
This method of calculating productivity considering all resources is called multi-
factor approach to meaning productivity.
Following are the 2 formula for calculating partial & total productivity.
Partial Productivity = Output in a given period
Labour hours used in the period
Total productivity = Output in a given period
Labour + Capital + Materials + Energy used in the Same
period
In practice, Partial productivity is mainly calculated for purposes of analysis &
remedial actions.
Among all the inputs, it is the direct labour, which is mainly used as the terminator
for calculating partial productivity. This is so, because labour continues to occupy a place of
pride in manufacturing systems, Net with standing automation. Certain operations cannot be
automated because of extreme product variability, the variable nature of some duties (such as
materials handling), the nature of the materials being produced & similar reasons.
For these operations, either it is simply not cost effective to automate them or
capital is not available in purity for automation. Moreover, most services remain labour
intensive. For these reasons, improving productivity of labour continues to receive
management attention.
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Various methods to measuring the productivity
1. Work study
a. Method study
b. Time study.
2. Organization & methods study (O & M Study)
3. Value Engineering
4. Statistical Quality Control
5. Operations Research
6. Project management
7. Production, Planning & Control
8. Plant Layout Engineering
9. Methods Time Measurement (MTM analysis)
Work study
Industry everywhere has been striving hard to discover new work methods and
techniques which could help to produce goods of required quality at reasonable costs. The
search has resulted in finding techniques such as work simplification, job design, value
analysis and the like. All these are collectively called "methods engineering" or "industrial
engineering". The either names used are 'work design', 'work study', 'method analysis' &
‘operation analysis’.
For the sake of simplicity, the terms work study is used.
Importance of work study
In today's competitive business environment, it is necessary that the employees work
harder, be more productive so that, production costs can be kept low to meeting global
competition.
Operations managers have to continuously strive for low production costs, high
product quality and improve every facet of manufacturing. In this direction, improving labour
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productivity and reducing costs by improving work methods and simplifying the work, needs
special attention by operations manager. To facilitate this, the work study technique has been
developed over a period of time.
Work study is defined as that body of knowledge concerned with the analysis of the
work methods and the equipment used in performing a job, the design of an optimum work
method and the standardization of proposed work methods.
Work study has contributed immeasurably to the search for better methods, and the
effective utilization of this management tool has helped in the accomplishment of higher
productivity. It's a management tool to achieve higher productivity in any organization
whether manufacturing tangible products or offering services to its customer.
Work study is also understood as a systematic, objective and critical examination of
the factors, affecting productivity for the purpose of improvement. It makes use of techniques
of method study and work measurement to ensure the best possible use of human and
material resources in carrying out a specific activity.
Objective of work study
1. To analyze the present method of doing a job, systematically in order to develop a
new and better method.
2. To measure the work content of a job by measuring the time required to do the job
for a qualified workers and hence to establish standard time.
3. To increase the productivity by ensuring the best possible use of human, machine &
material resources and to achieve best quality product & services at minimum
possible cost
4. To improve operational efficiency.
Benefits of work study
1. Introducing productivity & operational efficiency.
2. Reduced manufacturing costs.
3. Improved work place layout
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4. Better manpower planning & capacity planning.
5. Fair wages to employees.
6. Better working conditions to employees.
7. Improved work flow.
8. Reduced material handling costs.
9. Provides a standard of performance to measure labour efficiency.
10. Better industrial relations & employee morale.
11. Basic for sound incentive schemes.
12. Provides better job satisfaction to employees.
The purpose of work study is to determine the best or most effective method of
accomplishing a necessary operation or function. The criteria for best method could be an
increase in job satisfaction and individual morale, reduction in physiological fatigue,
decrease in number of accidents & personal injuries, minimization of material usage, total
breakage or usage of consumable supplies and increase in productivity by reduction of
performance time.
Method Study
It is a scientific technique of observing, recording & critically examining the present
method of performing a task or job or operation with the aim of improving the present
method and developing a new & cheaper method.
It is also known as methods improvement or works improvement.
Objectives of method study
1. To study the existing/proposed method of doing any job, operation or activity.
2. To develop an improved method to improve productivity & to reduce operating
costs.
3. To reduce excessive materials handling or movement and thereby reduce fatigue of
workmen.
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4. To improve utilization of resources.
5. To estimate wasteful & inefficient motions.
6. To standardize work methods or processes, working conditions, machinery,
equipments & tools.
Advantages of Method Study
1. Work simplification.
2. Better product quality.
3. Reduce manufacturing lost & higher productivity.
4. Higher job satisfaction for workmen.
5. Improved working method.
6. Optimum utilization of all resources.
Method Study procedure
The various steps involved in method study are
1. Select
Select the work or job to be studied and define the objectives to be achieved by
method study.
2. Record
All the relevant facts or information pertaining to the existing method using the
recording techniques like operation process charts, flow process charts, motion charts, film
analysis charts.
3. Examine
The recorded facts critically, challenging everything being done & seeking
alternatives, questioning the purpose, the means, sequences, place & the person.
The questioning attitudes of methods analysis
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1. What is done? What is the purpose of the operation? Why should it be done? What
would happen if it were not done? Is every part of the operation necessary?
2. Who does the work? Why does this person do it? Who could do it better? Can
changes be made to permit a person with less skill and training to do the work?
3. Where is the work done? Why is it done these? Could it be done somewhere else
more economically?
4. When is the work done? Why should it be done this? Would it be better to do it at
some other time?
5. How is the work done? Why is it done this way?
4. Develop
Develop the improved method by generating several alternatives and selecting the
best method.
5. Define
Define the new method for the job / process / operation.
6. Install
Install the improved (new) method in planning, arranging & implementing phases as
a standard practice.
7. Maintain
Maintain the new method by ensuring that the installed method is functioning well.
This is done by periodic checks and verifications at regular intervals. Proper controlled
procedures are used to ensure that the new method is practiced to achieve the benefits of
methods study & also achieve the benefits of methods study and also achieve higher
productivity.
Time Study
It is concerned with the determination of the amount of time required to perform a
unit of work. It consists of the process of observing and recording the time required to
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perform each element of an operation so as to determine the reasonable time in which the
work should be completed.
Objectives of time study
1. To determine by direct observation.
2. To determine standard costs.
3. To set labour standard for satisfactory performance.
4. To determine equipment & labour requirements
5. To determine the number of machines an operator can handle.
6. To balance the work of operators in production.
7. To determine the cycle time completion of a job.
Value engineering
It is an important activity that typically occurs jointly between purchasing and
methods engineering. This activity is aimed at modifying the specifications of materials, parts
and products to reduce their costs, while reducing their original function.
A value analysis team takes a product, which has been designed or produced and
attempts to define what function the product should fulfill
Once the function has been identified the analysis team examines the possible way of
performing the function at the lowest cost.
The following questions are considered while examining the product.
1. Is there a less expensive product which will perform the required function?
2. What does each component contributed?
3. Can a less expensive material be used?
4. Can parts be combined?
5. Can it be designer for easier assembly?
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6. Can it be fabricated by other parts?
Asking questions is probably the simplest and most effective approach for value
analysis which results in the achievement of improved and increased productivity.
Statistical Quality Control
It is the application of statistical techniques to accept or reject products already
produced, or to control the process and therefore, product quality while the part is being
made.
Mainly it is used for controlling quality during production in mass production
industries which produce standard products.
This method offers several advantages to its users. Hence it is being increasingly
used in the industrial field.
1. It helps prevent defects from being made.
2. Costly, rework, rejection, & scrap are avoided.
3. It helps avoidance of the risk of accepting a bad lot.
4. It avoids the inspection of the entire lot.
5. It ensures the maintenance of high standards of quality & enables the users to build
up their good will.
6. To supply an audit of quality regarding the procedures products.
Operations Research
Operations Research can be characterised as the application of scientific methods,
tools & techniques to problem involving the operations of systems so as to provide these in
control of the operation with optimum solution to the problem.
Characteristics
1. Its system (or executive) orientation.
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2. The use of interdisciplinary teams, application of scientific method.
3. Uncovering of new problems.
4. Improvement in the quality of decisions.
5. Use of Computer.
6. Quantitative solution.
7. Human factors.
Scope of Operations Research in Management
1. Allocation and Distribution
a) Optimal allocation of limited resources such as men, machines, materials, time and
money.
b) Location and size of warehouses, distribution centres, retail depots etc.
c) Distribution policy.
2. Production and facility planning.
a) Selection, location and design of the production plants.
b) Project scheduling and allocation of resources.
c) Preparation of forecasts for the various inventory items and computing economic
order quantities and reorder levels.
d) Determination of the number and size of the items to be produced.
e) Maintenance policy.
f) Scheduling and sequencing of production runs by proper allocation of machines.
3. Procurement
a) What, how and when to purchase at the minimum procurement cost.
b) Bidding and replacement policies.
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4. Marketing
a) Product selection, timing & competitive actions.
b) Selection of advertising media.
c) Demand forecasts and stock levels.
d) Customer’s preference for size, colour and packing of various products.
5. Finance
a) Capital requirement, cash flow analysis.
b) Credit policies, credit risks etc.
c) Profit plan for the company.
d) Determination of optimum replacement policies.
6. Personnel
a) Selection of personnel, determination of retirement age and skills.
b) Recruitment policies and assignment of jobs
7. Research and Development
a) Determinations of areas for research and development.
b) Reliability and Control of development projects.
c) Selection of projects and preparation of their budgets.
From all of the above areas of applications it can be concluded that operations
research can be widely used in taking timely management decisions and can be also used as a
corrective measure.
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Project Management
A Project is an organized endeavors to accomplish a specified non -routine or law
volume task.
Management of project differs in several ways from management of a typical
business. Operations manager must after organize project team to plan and control projects.
While the projects work is proceeding the remainder of the organization must continue to
produce the organization’s products.
The type of techniques required to manage the projects depends on the complexity of
the projects.
For small projects, Gantt charts are adequate whereas for large and complex projects,
the critical path method or programme evaluation and review technique would be more
effective.
Gantt chart or Scheduling chart
It indicates what must be done and when it must be done. As the projects progresses,
the chart is updated to indicate the amount of accomplishment towards the plan.
In this way, the projects managers can compare actual project work accomplishment
with planned projects progress.
These charts are easy to understand and to modify. They are of low cost.
Critical Path Method
It refers to a quantitative technique which, when applied to network planning, is
helpful in calculating the minimum time and the sequence of tasks needed to complete a
projects.
This method is used to ensure logical discipline in planning, scheduling and
controlling projects.
1. To encourage more long range and detailed planning of projects.
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2. To provide the management with periodic reports as the projects progress.
3. To identify the most critical element of the plan.
Program Evaluation & Review Techniques (PERT)
It is a name given to a networking approach to planning, monitoring, controlling and
evaluation of complex projects. It consists of a network diagram which is a two-dimensional
schematic of the relationships between tasks in a project.
1. It is an outstanding approach for the timely completion of projects.
2. It minimizes delays in various parts of the overall job & helps in expediting the
completion of the project.
3. It is a method of budgeting resources to pre-determine the job on schedule.
Methods Time Measurement (MTM)
In this method, predetermined time values for basic motions such as reach, move,
turn, apply pressure, grasp, position release etc are established in terms of TMU's (i.e. Time
Measurement Units)
Methods Time Measurement has been used for
1. Developing effective methods in advance of beginning the production.
2. Improving the existing methods.
3. Establishing standard time data.
4. Estimating labour time & cost.
5. Training supervisors to be method conscious.
6. Choosing between alternative methods.
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Production Planning & Control
It functions essentially consists of planning production in a manufacturing
organization before actual production activities start and exercising control activities to ensure
that the planned production is realized in terms of quantity, quality, delivery schedule and the
cost of production.
Objectives of PPC
1. To deliver quality goods in required quantities to the customer in the required delivery
schedule to achieve maximum customer satisfaction & minimum possible cost.
2. To ensure maximum utilization of all resources.
3. To ensure production of quality products.
4. To maintain optimum inventory levels.
5. To maintain flexibility in manufacturing operations.
6. To co-ordinate between labour, machines and various supporting departments.
7. To minimize the product through production / manufacturing cycle time.
8. To plan for plant capacities for future requirements.
9. To solve problems related to production.
10. To ensure effective cost reduction and produce effective results for least total cost.
11. To ensure the optimum utilization of materials, labour, equipments & machines.
12. To prepare production schedule and ensure that promised delivery dates are met.
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13. The ultimate objectives are to contribute to the profit of the enterprise.
Plant Layout Engineering
When a new plant is erected, the question of the placement of machinery at different
places, the location of stores, inspection cabins, tool rooms, maintenance wings, plating
shops, heat treatment chambers, toilets, canteens, trolleys, cranes and other handling
equipments and the like, receive a priority consideration. This is so because the efficiency of
the production flow depends largely on how will the various machines, production facilities
and employee amenities are located in plant.
A plant layout refers to the arrangement of machinery equipments and other
industrial facilities such as receiving and shipping departments, tool rooms maintenance
rooms and employee amenities for the purpose of achieving the quickest and smoothest
production at the least cost.
The subject of plant layout not only covers the initial layout of machines and other
facilities but encompasses improvements in, or revisions of the existing layout in the light of
subsequent developments in the method of production.
Objectives of Good Layout
1. Provide enough production capacity.
2. Reduce material handling costs.
3. Reduce congestion that impedes the movement of people or material.
4. Reduce hazards to personnel.
5. Utilize labour efficiently.
6. Increase employee morale.
7. Reduce accidents.
8. Utilize available space efficiently & effectively.
9. Provide for volume & product flexibility.
10. Provide ease of supervision.
11. Facilitate co-ordination & face- to-face communication where appropriate.
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12. Provide for employee safety & health.
13. Allow high machine / equipment utilization.
14. Improve productivity.
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Developing or improving the productivity
1) Companies focus their attention on increasing productivity. The first step in
improving productivity ratio is to understand the factors that influence the
relationship between Output and Input.
2) The methods of improving productivity are particularly the same as those of
scientific management. Specifically production planning, production control,
inventory control, operations research, cost control, budgetary control, marketing
research, preventive maintenance & so on will help to improve productivity. The
basic pre-requisite for increasing productivity is to improve the performance of
production.
3) Specifically in the beginning production runs, workers are unfamiliar with their tasks
and the amount of time required to produce the first few units is high but as the
workers learn their tasks, their performances improves. The performance time drops
of rather dramatically at first and it continues to fall at some slower rate until a
performance plateau or leveling-off is reached. This learning pattern applies to
groups and organization as well as individuals and it is often regular & predictable.
Production function – Areas of Productivity
1. Improving volume of production.
2. Reducing rejection rates
3. Minimizing rework rate.
4. Maintaining delivery schedules.
5. Contracting all kind of machines and men.
6. Establishing / up dating / improving / setting industrial engineering norms.
7. Updating process and procedures.
8. Maintaining accuracy & timeliness of MIS.
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9. Decreasing machine set - up time.
10. Controlling over time.
11. Good house keeping.
12. Checking absenteeism, thefts / pilfers age & misconduct.
13. Eliminating accidents.
14. Effective grievance handling.
15. Efficient training & team building.
16. Minimizing inventory & achieving better yields.
17. Enhancing customer satisfaction.
18. Total quality management (TQM)
19. Business process re-engineering (BPRE)
20. Automation.
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Labour / Employee Productivity
There are at least three ways of measuring labour productivity,
1) Output per man - hour
Labour Productivity = Output
Man-hour used
2) Labour hours per unit of output
Labour Productivity = Total labour hours used
Output
3) Added value per unit of labour cost
Labour Productivity = Added value for the product
Total wages.
Added value for a product is taken as the difference between its sales value and the
cost of bought out items.
Obviously, the first formula is most commonly used to measure partial productivity.
Measurement of productivity involves the problem of expressing the related factors
numerically to active at the mathematical expression of productivity.
The main objective behind productivity measurement is to provide management with
a concise and accurate index for comparison of actual results with expected levels of
productivity.
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Improving the Labour productivity
Successful businesses know that their organizations’ success is directly related to
worker performance, which is directly related to worker health. Measuring employee
productivity will prove invaluable in quantify the value of employee’s health to the bottom
line.
Safety & Health
Safety
Thousands of employees throughout the works lose their fingers, eyes, limbs, even
their lives, everyday. Much blood flows in the sewers of industrial establishments. The
dangerous inherent in industrial work has made the life of a worker very cheap.
Accident costs the organization dearly. Two types of costs are incurred by the mgmt
when an accident occurs. There is the direct cost, in the form of compensation payable to the
dependents of the victim if the accident is fatal and medical expenses incurred in treating the
patient if the accident is non fatal. The management however is not liable to meet the direct
cost if the victim has been incurred under the ESI scheme.
More serious than the direct costs are the indirect or hidden costs which the mgmt
cannot avoid. Hidden costs include loss on account of down time of operations, scanned - up
production rate of other workers, materials spoiled and labour for cleaning and damage to
equipment. Morale of the employees is lost. The firm may lose customers because of non
execution of orders.
Organization also suffers financial losses which accompany accidents.
Safety, therefore assumes greater relevance in industrial establishments. Safety
simply refers to the protection of workers from the danger of industrial accidents. Safety is
the necessary as it has an impact on productivity, cost and loss of revenue.
Safety is important on humane grounds too, managers must undertake accident
prevention measures to minimize the pain & suffering the injured workers & his family are
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often exposed as the result of an accident. An employee is a worker in the factory and the
bread winner for his family. Management has no right to make the worker disabled are
economical crisis or lose his life. Organization evolve elaborate safety program to prevent
accidents. A typical safety program comprises five elements namely,
1. Development of policies, procedures & training systems.
2. Creation of an organization to ensure safety.
3. Analysis of the causes & occurrence of accidents
4. Implementation of the safety program and
5. Evaluation of the effectiveness of the program
Health
Health is wealth for employees as wells as for employers. Health of employees is
affected by surroundings, job stress, noise, alcoholism, drug abuse & Aids.
Health of employees is significant as it has an impact on productivity, absenteeism
and turnover. The protection of health of workers is a legal requirement too. Realizing the
need for healthy employees’ organization takes necessary steps to prevent causes which
result in ill health to workers.
Measuring Employee Productivity will help to
1. Determine the impact of health issues on your worker’s performance.
2. Compare the impact of different health issues on worker performance.
3. Identify areas of opportunity for health interventions.
4. Assess the potential productivity gains from alternative health improvement
strategies.
Incentive Payments
Incentives are monetary benefits paid to workmen in the recognition of their
outstanding performance. The primary advantage of incentives is the inducement &
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motivation of workers for higher efficiency and greater output. It may not be difficult to get
people for fixed remuneration; it is difficult to motivate workers to show better performances.
Fixed remuneration removes fear of insecurity in the minds of employees. A feeling
of secured income fails to evoke positive response. Positive response will surely come when
incentives are included as a part of the total remuneration.
Earnings of employees would be enhanced due to incentives. Increased earnings
would enable the employees to improve their standard of living. Then there will be reduction
in the total as well as per unit cost of production, through incentives. Productivity would
increase resulting in a greater number of units produced for given inputs. This would bring
down the total and unit cost of production.
Production capacity is also likely to increase. The higher capacity has been achieved
with the result of the implementation of the recommendation for the adoption of an
individual/group incentive scheme.
The other advantages of incentive payments as reduced supervision, better utilization
of equipments, reduced cost time, reduced absenteeism & turnover and increased output
which leads to increase in productivity.
Creation of whole jobs
Under this procedure, complete jobs are assigned to the workers; jobs should be
exchanged that is the complexity of a job should be increased. So that it may appeal to their
needs. On an assembly line, for example a worker may be allowed to perform more than one
specialized function.
Job enrichment
This involves a greater use of the factors which are intended to motivate the worker
rather than to ensure his continuing satisfaction with the job he performs. The idea is to
reduce employee discontent by changing or improving a job to ensure that he is better
motivated. Job enrichment also opens up for the employee an opportunity for greater
recognition, growth, advancement & responsibility.
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Building responsible into a job
Employees should be encouraged to take risk decision. This can be ensured by
delegating authority to them.
Modifying the work environment
This involves the use of teams of work groups, developing the social contacts of the
employees, the use of music, regular rest breaks.
Flexing working hours
Introducing flextime and flexible working hours so that an employee may have
enough time to look after his children and his family as well as after his personal affairs. In
this manner the rate of absenteeism can be reduced.
Job sharing or twinning
Under this system, two workers divide a full-time job between themselves, splitting
not only the hours of work but also the salary.
Rotation of jobs
Job rotation helps to reduce an employee’s boredom which arises out of the
monotonous nature of his work. By the adoption of this procedure, imaginative managers can
develop many more ways of making a job interesting for their employees.
By all these methods we can develop the employee morale and which finally leads to
productivity enhancement.
Job Design
Job design involves conscious efforts to organize tasks, duties and responsibilities
into a unit of work to achieve a certain objective. It specifies the content of each job and
determines how work is distributed within the organization. Job design integrates work
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content (tasks, functions and relationships), the extrinsic and intrinsic rewards and the
qualification required (skills, knowledge and abilities) for each job in a way that meets the
needs of employees and the organization.
The design of jobs has a critical impact on organization and employee objectives.
From the organization’s prospective, the way tasks and responsibilities are grouped can affect
productivity and costs. Therefore, the thoughtful design of jobs can help both the
organization and its employees achieve their objectives. Jobs are more than a collection of
tasks recorded to a job analysis schedule and summarized in a job description. Jobs are the
foundation of organizational productivity and employee satisfaction. Jobs have to be designed
in such a way that it must play an increasingly important role in the success, even survival of
any organization. As the number of new worker coming into the labour market slows and
international competition increases, well designed jobs will become even more important in
attracting and retaining a motivated workforce, which is capable of producing quality
products and services. It may be stated that, poorly designed jobs may lead to lower
productivity, low employee turnover, absenteeism, complaints, unionization and other
problems.
A job is a long term assignment of tasks by means of which a person is able to
contribute to the effectiveness of an organization. A firm depends on its employees for
success. The three main objectives that a manager tries to realize in specifying jobs are
Technical feasibility, Economic feasibility, Behavioral feasibility.
Technical feasibility
A job is a set of tasks or duties assigned to be performed. The person who holds the
job must be capable of performing the assignment with the equipment and systems available
and the job must take the necessary transformation of inputs into outputs.
A job must not be beyond the reasonable limits of a person’s skills or physical and
mental endurance. Proper selection of processes and equipment as well as proper training of
employees helps ensure technical feasibility.
Economic feasibility
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The cost of performing the job should not be too high. Since many business must
perform in a competitive environment, they are subject to some pressure, to keep prices at
reasonable levels.
Behavioral feasibility
Some characteristics of a job may affect the job-holders’ perception of themselves,
their perception of others and their relationships with others. The feeling that people desire
from a job affects their motivation to perform it. It is often more than a mechanical motion
and it requires motivation and mental simulation if it is to be performed successfully. Beyond
the individual, jobs carry with them, social interaction that may lead to group reaction. Work
groups have a large impact on the effectiveness of an organization.
An organization must achieve economic feasibility in order to survive. This may
make it necessary to stress technical efficiency at the expense of employee satisfaction and
motivation. Jobs must be made satisfying to add to the worker’s motivation so that there is no
reduction in efficiency and perhaps even an improvement in quality and cost performance.
Factors affecting job design
Organizational factors
1. Characteristics of Task
2. Work flow
3. Ergonomics
4. Work practices
Environmental factors
1. Employee abilities & availability
2. Social & Cultural expectations
Behavioral factors
1. Feedback
2. Autonomy
3. Use of abilities
4. Variety
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Ergonomics
In recent years, a body of knowledge has developed that deals with the design of
work situations, known as human factors engineering or ergonomics. This area of knowledge
is also called as biomechanics or engineering psychology. Job design takes into account the
physical effects of work on the workers and these effects are taken into account in the design
of equipments used by the workers ergonomics endeavors to apply relevant information about
human characteristics and behavior to the design of things people use.
As stated earlier, ergonomics is concerned with designing and shaping jobs to fit the
physical abilities and characteristics of individual so that, they can perform the work more
effectively. Ergonomics is the study of how human beings physically interface with their
work. It evolves guidelines on the development and adjustment of technology for rational
utilization of human potential under the favorable environment and social conditions. In turn,
this enhances system safety, human comfort, effectiveness and quality of work life.
Ergonomics can be applied in two major areas, namely
The physical devices or equipments people use in performing work, and
The environment in which, work is performed.
Design of Physical devices or equipments
A worker is part of a system, containing many elements, including the tools and
equipment he or she uses. These combinations are sometimes called machine-worker
systems, because they are interrelated components that form a subsystem in the total
collection of factors that affect operations. Since the human part of the machine-worker
system cannot be redesigned and reconstructed to increase its effectiveness, the machine must
be adapted to the worker. To operate equipment or a device, the worker must be able to sense
the operating conditions, able to reach the controls without undue fatigue or effort and apply
the necessary force on the controls. The average worker is capable of reaching many
locations (for controls) but the speed of reach and accuracy of adjustment are affected by the
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location of the control for which one is reaching. Therefore the determination of the best
location for the controls, require considerable investigation and understanding of human
capability and limitations.
Work environment
The environment in which, people work can affect their comfort, health and
productivity. Some environmental variables to be considered are temperature, noise and
lighting.
Temperature: Human beings can perform under a variety of combinations of temperature,
humidity and air movements. The effects of these variables depend on the great effort of the
work task and adaptation of individuals to the conditions.
Noise: Noise or unwanted sound in the workplace, not only is distracting, but may even cause
damage to the workers’ hearing. For occupational safety and health, it is necessary to ensure
that, the workers should not be exposed to noise intensity of above 90db for more than nine
hours continuously. When sound intensities are above 85 to 90db protection devices need to
be worn.
Lighting: Good illumination at the work place or on the work surface is necessary for proper
work performance without strain for the eyes. The color content of light and the amount of
glare are also important.
Activities involved in Ergonomics are,
Improving the workflow.
Reducing repetitive physical motions.
Adjusting illumination levels.
Allowing employees to personalize the work area
Using pleasing colors in the office.
Creating private offices and work spaces.
Providing lounges for rest breaks.
Rearranging, adjusting or replacing equipment parts and work spaces.
Placing team members close together so that they can interact easily.
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Providing adjustable office furniture to fit varying body physiques and particular
work activities.
Productivity application in the industry
Case Analysis
Printing department was taken for case study analysis.
The following is the structure in printing
Machinery = 5 machines
Labour = 36
FLOW CHART
1. P.O. Receipt from H.O.
2. P.O.Checking
3. Process Checking
4. Indenting for Grey fabric & color preparation
5. Arranging for pre process
6. Inspection of fabric
7. Color matching
8. Printing
9. Inspection before steaming
10. Steaming or curing
11. Washing & drying
12. Stentering
13. Wrinkling or graining
14. Fastness checking
15. Final inspection
Time study sheets are enclosed
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The Findings and improvements have been summarized below.Macro Observation
1. Productivity targets
Output/machine/shift and Output/worker/shift can be fixed.
2. The rate of working of the workers can be significantly improved.
3. An incentive system covering and balancing quality, production and machine output can
be implemented to motivate the workers and improve overall productivity.
Micro Observation
1. Every printing machine is operated by an operator and a helper. Engaging the helper may
be avoided, as he has got hardly 10% of the work to perform.
2. During multicolor printing the operator can keep all the required screens adjacent to the
work spot.
3. Screens washing may be done by a common helper. The operator need not wait for the
helper to wash the screens, fixed the new screens for work spot and then start the printing
of next color.
4. Pasting Side Polycovers work has been totally eliminated.
5. Water saving
Water hoses can be fixed with stop guns to give necessary pressure during screen
cleaning leading to save the water.
6. 1 Cleaner (Contract Worker) per Shift can be allocated to clean all the used Screens and
Squeeze brushes. This unskilled, unproductive work need not be done by the Helper.
7. Cleaning Room can be shifted to the Dept.’s Corner (the place where UPS and Workers’
Lockers are located). It would be more logical as the Screens Stack (Main Stack) is also
located that Side.
The existing and proposed layout sheets are enclosed.
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8. All the materials required can be planned and kept ready near the corresponding Table
before a Lot is started. Searching of Screens, repairing Screens etc. can be avoided during
Production time.
9. Sampling work
At present sampling work is done in between production work, leading to loss of machine
capacity Sunday can be fixed as a sampling day and all samples can be planned week
wise and finished on Sundays. This would lead to significant improvement in machine
productivity and capacity utilization.
Or
One machine can be exclusively allocated for sampling work.
10. 5 days working/ 6 days working (including sampling) may be implemented whenever
orders are less.
11. Lighting
Lighting levels can be studied and analyzed to save on the lighting cost.
12. Existing and proposed man power plan has been enclosed
Existing Proposed
Operators- 5/shift
(1 worker/machine)
Operators- 5/shift
(1 worker/machine)
Helpers- 5/shift
(1 helper/machine)
Helpers- 2/shift
(1 helper for screens washing and 1 helper for
assisting all running machines)
Lab- 1worker/shift 1 worker/shift
1 worker in the general shift 1 worker in the general shift
34- workers 25- workers
7th day- 5.66 4.16
10% L & A- 4 3
Grand Total- 44 workers 32 workers
Average
production/day =500mtrs
Average production/day=1000mtrs
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Average 6 colors/lot
(Please see the Table no 1 for details)
Average 6 colors/lot
Projected labour savings = 28%
Projected wages savings/day = 2400 Rs/-
(CTC of Rs 200/work/shift)
Projected savings/year
(356 days working) = 2400*356
= 854400 Rs/-
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Conclusion
The Project “Enhancement of Competency and Productivity of Employees” done at
the Bharat Tissus Pvt. Ltd., Bangalore has been valuable experience.
This project has been learning experience. It enable me to learn about the different
types of competencies occurring in organization & its enhancement and Labour productivity
its improvements and measuring methods and to study the HR practices carried out in the
BTPL.
To improve the competency of employees there has to be a continuous thinking,
questioning and aligning the thoughts & correction and proper directions are to be
implemented.
To improve the productivity there has to be optimum utilization of resources, man
power and done by various measures.
There is significant scope for improving labour and machine productivity and
reducing labour and power cost.
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Bibliography
Books –
Personnel Management by C.B. Memoria
Production & Operations Management by K. Ashwatthappa
Operations Research by Hira & Gupta
Assessment Centre by Nitin Sawardekar
Websites –
http://www.gogglesearch.com
http://www.clomedia.com.
http://www.competency.html
http://www.aplawrence.com/opinion/productivity.html
http://www.itf-schwerin.de/english/external-management.htm
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