Impact of GST on Spending Behaviour of Consumer in India

1. By
Ms Bharati Amol Ahire
Under the Guidance of
Dr.U.V.Panchal
Former Principal
Vinayakrao Patil Mahavidyalaya,
Vaijapur
Impact of competency based management
strategies on human resource retention in
engineering industries in Marathwada
Region

2. The Prologue
Human resources is a term with which many organizations describe the
combination of traditionally administrative personnel functions with
performance, Employee Relations and resource planning. The field draws
upon concepts developed in Industrial/Organizational Psychology. Human
resources has at least two related interpretations depending on context.
The original usage derives from political economy and economics, where
it was traditionally called labor, one of four factors of production. The more
common usage within corporations and businesses refers to the
individuals within the firm, and to the portion of the firm's organization that
deals with hiring, firing, training, and other personnel issues. Though
human resources have been part of business and organizations since the
first days of agriculture, the modern concept of human resources began in
reaction to the efficiency focus of Taylorism in the early 1900s. By 1920,
psychologists and employment experts in the United States started the
human relations movement, which viewed workers in terms of their
psychology and fit with companies, rather than as interchangeable parts.
This movement grew throughout the middle of the 20th century, placing
emphasis on how leadership, cohesion, and loyalty played important roles
in organizational success. Although this view was increasingly challenged
by more quantitatively rigorous and less "soft" management techniques in
the 1960s and beyond, human resources had gained a permanent role
within an organization. A lot is going on in recent times on the issue of
competency mapping. A lot of resources spent and consultants invited to
do competency mapping. Increased manpower costs, need for ensuring
that competent people man critical positions, and the need to be
competitive and recognition of the strategic advantages of having good

3. Competency Mapping What Are Needs?
The term "need" can be somewhat ambiguous. What one person
considers a need, another may consider a want or desire, leading to the
terms "felt" and "actual" needs. In some cases, felt needs are actually
symptoms of deeper actual needs. For example, a group of employees
expresses a felt need for stress management training. Upon investigation,
however, the actual need may be to ameliorate or eliminate the sources of
stress, such as noise, inefficient work processes, or ineffective supervisory
practices. In good organizations competency mapping existed already.
Traditionally HR directors and their top management have always paid
attention to competencies and incorporated them mostly in their appraisal
system. Competency mapping is important and is an essential exercise.
Every well managed firm should: have well defined roles and list of
competencies required to perform each role effectively. Such list should be
used for recruitment, performance management, promotions, placement
and training need identification. Competency Mapping, the buzz word, is
not as complicated as it may appear from the face of it. Some companies
have truly worked the concept into several of their processes. A few have
a fully implemented competency modeling and reporting system in place.
These address the development of people from process design through
succession. However, quite a few organizations are still striving to build a
competency model and implement it. Most organizations, of all sizes, are
still struggling with defining, designing and implementing competency
model projects. The process is completely customizable. The decisions of
competency design are driven by a number of organizational factors,
including management philosophy, customer requirements, business
needs, and in-place processes. These factors vary from one organization

5. Employee Retention: Meaning and Importance
Employee retention has become a critical issue in today’s competitive
world. Organizations are required to execute strategies for employee
retention in order to cope up with employee turnover effectively and
efficiently. High employee turnover shows that organizations are losing a
high number of employees in comparison to the number of employees
they hired in a specific period of time. This also indicates that
organizations are unable to do proper job selection and to create such a
work environment which motivates employees to remain in the
organization. In the service organization, a high employee turnover rate is
undesirable because it adversely affects an organization in many ways like
low employee morale, poor performance, low productivity of employees
and organization, decreased sale, and the major losses of revenue
because of decreased sales. Employee retention is defined as the ability
of an organization to retain its employees. Employee retention can be
understood with the help of the following example: if the employee
retention rate is 70%, then it indicates that an organization has kept 70%
of its employees in a specific period of time. Organizations must make
efforts to create and maintain a positive working environment which
encourages the employees to stay in the organization. Organizations are
required to recognize employee abilities and contributions, and reward
and recognition must be given to the employees to appreciate their
contributions as it is one of the critical factors which can helps
organizations to retain their employees. Reward and recognition is not
only the worth of the contribution for the employees but it motivates them
to work even harder and become more loyal to the company. Hence a
good reward and recognition policy can helps an organization to create a

6. Objectives of the study
 To identify the impact of competency based
management strategies on human resource retention in
engineering industries in Marathwada Region.
 To explore the major challenges organizations face in
relation to employee retention in the engineering
industries.
 To analyze the organization interventional strategies to
manage employees retention.
 To study the relation between job satisfaction and
Human resource retention in select organization under
study.
 To determine to what extent HRM practices and
organizational culture may affect employee retention in
engineering industries.

7.  Hypothesis tested
 H1:- The majority of selected organizations use
competency based management strategies to retain
human resource
 H2:- There are few frequently used management
strategies adopted by selected organizations to
retain human resource
 H3:- There is an association between job satisfaction
and competency based management strategies

8. Sources of data collection
 Primary data collection: A self structured interview schedule
was used for data collection. Primary data is collected using
a structured questionnaire as a research instrument and
interviewing the respondents for finding answers to the
research problem defined in the study.
 Secondary data collection: Data collected by extensive
literature review by various researchers, using books,
Journals, Magazines, health care periodicals, Indian Medical
Association, Internet, Research papers, articles, Annual
Reports of Hospitals, to find the research gap.
 Analysis of Data: Collected data was analyzed logically and
meaningfully using appropriate statistical tools and treated
with SPSS (Statistical Package for Social Sciences) package
to deduce the interpretations. The analyzed data was
interpreted for deriving conclusion and suggestive
recommendations will be given as per finding.
 Research Technique: Survey method, Studying past
employee turnover records

9.  Selection of Samples
 There are in all 390 engineering Industries with 39,485 employees and 467 HR mangers in Marathwada
Region a huge universe, hence it was not possible for researcher to selected 10 % of samples due to time,
money and physical limitations, therefore by applying convenience sampling method researcher has
decided to take a representation sample of 50 engineering Industries, 500 employees and 50 HR
managers selected randomly from among the huge available sample.
Tools and techniques used
 Statistical Tools: Mean, Mode, Median, Tables, graphs, questionnaires S.P.S.S.: Regression ,Correlation,
Weighted Average, Factor Analysis
 Research Design
In the view of objectives of the study a descriptive research design is undertaken. Descriptive design
describes data and characteristics about the population or phenomenon being studied. The study would
provide information on the states of matter as it exists (Ex post facto).
 Scope of the Study
Geographical Scope : This research confines to automobile industry covering major engineering
manufacturing units in Marathwada region
 Temporal Scope : This research covers data and information from 2010 onwards
 Operational Scope :This research covers analysis and application of competency based management
strategies concerned with supervisory and above managerial cadre.
 Limitations of the study
Only large and medium manufacturing units and their first tier vendors are focused in the research.
The second tiers and other small units is out of purview of the study.
The service sector related to engineering industry is out of purview of the research.
The industries which are not registered with Dept of Industrial Health & Safety are not covered in the study.

10. Presentation of the study
Research is divided into following chapters:
 1) Introduction
 2) Review of Literature
 3) Socio-Economic Development of Maharashtra
state
 4) Competency based Management Strategies and
Human Resource Retention
 5) Data Collection and Analysis

11. Income Wise Classification of
Respondents
53
156
145
67
80
0
20
40
60
80
100
120
140
160
180
Below Rs. 15000
PM
Rs.15001 to
Rs.25000 PM
Rs.25001 to
Rs.40000 PM
Rs.40001 to
Rs.60000PM
Rs.60001 and
above
No of respondents

12. Department you are associated with at
present
49
100
180
25
100
46
0
20
40
60
80
100
120
140
160
180
200
Production Quality HR Marketing Finance Other
No of Respondents

13. Training and Development programs provided by
the companies for the Respondents
15
40
175
270
0
50
100
150
200
250
300
350
400
Excellent Good Average Poor
No of respondents

14. Criteria for performance appraisal in
the Industries
10
100
180
210
0
50
100
150
200
250
Excellent Good Average Poor
No of Respondents

15. Employee Satisfaction at a glance in
industries
Sr.
No.
Questions asked Choices Percentage
respondents
1 1. How would you rate
your overall satisfaction in
the company at the present
time
Satisfied
Dissatisfi
ed
Neither
57
25
12
2 2. How do you like your
job-the kind of work you
do?
Good
Average
poor
65
24
10
3 5. I Feel my Job makes the
best use of my abilities.
Yes
No
53
47
4 4. Dou you Feel the
company is concerned
about your performance
Yes
No
75
25

16. Intention to Quit
121
43
47
106
25
106
10
12
8 14 8
Appropriate
Remuneration/pay
package
Supportive work culture/
environment
Relationship with
immediate superior
Career growth
Training/skill
enhancement
Company
Image/reputation in
industry

17. Age Group of HR Group
39
11
No of HR Heads
35-40
41-45

18. Competency Mapping Process offered to respondents
enables them to identify opportunities for contribution. Growth
within the Organization
2
46
2
No of respondents
To a Very Great Extent
To a Considerable Extent
To a Very Little Extent

19. Competency Mapping in our Organization
has enabled the Organization to decide on
Reengineering
0
45
5
No of respondents
Yes. in all the cases
Yes. in most of the cases
Yes, in some cases

20. Testing of hypothesis
Testing of Hypothesis:-
H1:- The majority of selected organizations use competency based management strategies to retain human resource
Competency based management strategy adopted by the companies in selected Industrial area
Sr. No. Response
No of
Respondents
Percent
1 Yes 323 64.60%
2 No 187 35.40%
Total 500 100%

21.  H0: the proportion of respondent’s opinion regarding competency based
management strategies to retain human resource adopted by the companies in
selected industrial area is equal to 60%.
 H1: the proportion of respondent’s opinion regarding regarding competency
based management strategies to retain human resource adopted by the
companies in selected industrial area is greater than 60%.
 i.e. Test of H0: p = 0.60 vs H1: p is greater than 0.60
 The hypothesis is tested by one proportion test for statement as follows
 Minitab output Hypothesis testing (one proportion Z-test).
Sr.
No.
Item Favorabl
e
response
Total
customer
s
Sample
proportion
Z-
value
p-
value
1 Competency based
management strategies
to retain human
resource
323 500 0.6460 2.10 0.018

22.  Here calculated a z-statistic of 2.10 which is greater
than the critical value, 1.96 associated with a
significance level α = 0.05. Thus, we reject the null
hypothesis.
 As above table we show that using one proportion Z-
test, the p-value (0.018) is less than the level of
significance 5% (i.e. 0.05), hence null hypothesis is
rejected (H0) and the alternative hypothesis (H1) is
accepted.
 Hence, we conclude that, the proportion of respondents
opinion regarding competency based management
strategies to retain human resource adopted by the
companies in selected industrial area is greater than
60%.
 This means regarding competency based management

23. H3:- There is a no association between job
satisfaction and competency based
management strategies
Cross Table of Most Frequently used management
strategies/parameters and Job satisfaction
Sr.No
Parameters Job satisfaction
Reason to Quit Yes NO
No of
respondents
1
Appropriate
Remuneration/pay package 108 13 121
2
Supportive work culture/
environment 17 26 43
3
Relationship with immediate
superior 27 20 47
4 Career growth 89 17 106
5 Training/skill enhancement 18 7 25
6
Company Image/reputation
in industry 41 65 106
Total 300 148 448

24. Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-
Square 68.24 6 0.00
As above table we show that using Chi square -test, the p-value (0.000) is less than the level of significance
5% (i.e. 0.05), hence null hypothesis is rejected (H0) and the alternative hypothesis (H1) is accepted.
Hence, we conclude that, there is an association between job satisfaction and competency based
management strategies

25. Major conclusions:-
 55% of Respondents belonged to the age group between 31-35
years ,22 % Respondents belonged to the age group 36-40
years,7% of Respondents belonged to 26-30 years and 16%
belonged to the age group between 41-45 years.
 67% of Respondents are Post Graduates, 32% of Respondents
are Graduate and 1% of Respondents are less than graduate.
 60% of Respondents have work experience of 11-15 years, 24% of
Respondents have work experience of 5-10 years, 13% of
Respondents have work experience of 16-20 years and 3% of the
Respondents have work experience of 21-25 years.
 32% Respondents were satisfied and 68% Respondents were not
satisfied with their welfare facilities provided by the companies.

26.  57 percent of respondents were satisfied with their work, 65% preferred
their jobs and the kind of work they were doing, and 75 percent felt that
the company concerned their performance.
 58% of respondents agreed that work load is very much and task are
not finished on appropriate time; 23.4% agreed that work load is very
much but due to participative environment respondents are able to
complete their task; 15% said that work load is evenly distributed and
respondents are able to complete their task on time; and 3.6% said that
work load is less as compared to other companies.
 65% of respondents indicated that they have participative work
environment; 13% indicated that they have autonomy to do work; 13.8%
indicated that their work environment is Non-conventional in nature; and
8.2% revealed the presence of red tapism in the organization.
 Out of 500 respondents, 25% of the sample unit of respondents opined
low salary is the reason to quit the organization, followed by 35 % of
respondents opined superior negative behavior, 10% of respondents
opined bad working conditions, 25% of respondents highlighted low
career growth.
 78% of HR Group belonged to the age group between 35-40 years and
nearly 22% belonged to the age group between 41-45 years.

27.  Most of the respondents 45 (94.7 %) agreed to the statement
that the competency mapping in the Organization has led to
Rapid Organization Growth.
 47 (94%) agreed to the statement that the competency
mapping methods are validated regularly, only 2respondents
Disagree to the statement that the competency mapping
methods are validated regularly.
 44 (89.4 %) agreed to the statement that the competencies
for all managerial respondents have been documented. And
only 3 (6.4%) of the respondents said in some cases only
competencies for all managerial respondents are
documented.
 45 (90.7%) agreed to the statement that the competency
mapping initiative of our Organization is a time bound
process. Only 3 (6.1%) said that to a Very Little Extent
Competency Mapping Initiative of our Organization is a Time
Bound Process in their organization.

28. Important implication
 Competency Mapping is the building block for the long term
retention of talented human resource. It begins with the entry
point at recruitment level where competency of the position
must be matched with the competency of the new entrant in
the organization. The competency mapping exercise must be
executed at least once a year to incorporate changes which
are happening at the fast pace. The organizations should
make their system strong and unshakable by adopting
competency based strategies to retain and manage their
human resource.
 It is the job of HR heads to always select employees with
competencies that are closest to the organizational strategic
goals. They should maintain a data bank of information of
employees competencies which should be periodically
reviewed and updated.
 Organizational and team renewal exercises are building
blocks for sustained development of Organizations and
groups. Companies that implement competency mapping

29.  Every organization should ensure that Retention Strategies
form a part of their policy manual and overall strategies
which should be in the DNA of organization which should be
well communicated and executable. Any employee
irrespective of his position feel valued when retention
strategies are highlighted at par with other important
strategies of the organization.
 Every management has to conceptualize the supposition
that the employee needs to be managed and retained at all
levels in the organization in way that probability of their
quitting is reduced to minimum.
 In majority of the cases inappropriate remuneration becomes
the trigger point to exit the organization. So to ensure the
appropriate remuneration vis-à-vis industry and level, every
organization should periodically conduct salary survey in the
concerned area. It protects organization from poaching of
key talent ensuring long term success.
 Every organization has different financial standing in the
market. Some organizations have budgetary challenges

30.  The job of every employee irrespective of his level should be
viewed as extraordinary and no role even of a peon to be viewed
as ordinary by the organization. It gives equal opportunity to all to
perform extraordinary. It helps employees to love his or her job and
feels motivated and more glued to the job in hand.
 There should be equal opportunities to each and every employee
in an organization to remove their phobia or fear to participate in
the decision making process which is helpful for making
recognition in the organization.
 Exit interviews should be conducted for all levels in the
organization and should not be limited to only paper work. Exit
interviews should be taken very seriously and analyzed so as to
get valuable feedback to correct systems and pain areas resulting
into reduction of further outflow of the talent from organization and
to ensure satisfaction of job for the employees.
 Instead of big success or results, small activities leading to the big
success to be noted, praised and celebrated. It gives immense
sense of pride to the employee who got the small role to play in the
big team and motivating him.

31.  In engineering industry, varied generations worked together. Every
organization should have generation centric approach to cope up with the
internal politics played due to generation gaps. To team up varied
generations together and keep them motivated, generation difference
should be minimized because every generation has different reasons to
stay back in the organization. Hence to be critically analyzed in
perspective of generation.
 For long term retention of talent and successful organizations has always
kept watch on the prejudiced superiors. It is said that the employee does
not leave company but his boss. To ensure performance oriented work
culture with minimum interference of personal judgements, 360 degree
performance appraisal should be implemented in the organization for
authentic feedback and maximum retention.
 Factors like salary, career plan, improvement in position, better working
environment, flexible timings, employee involvement in the organization,
and better remuneration were identified as the most important factors for
employees when they look for a new job. Hence organizations are
needed to give emphasis to these factors to stop their employee to look
for other jobs.
 It has been observed that flexible working hours, organizations image,
and organization culture are the most important factors affecting
employee retention. Hence it is suggested that organization must focus