SKILL DEVELOPMENT

IN
HINDUSTAN AERONAUTICS LTD
For
Submitted in part fulfilment of the requirements for the
degree
OF

MASTER IN BUSINESS ADMINISTRATION

In the subject

HUMAN RESOURCE MANAGEMENT

At

CENTRAL UNIVERSITY OF ORISSA

BY
SWAGATIKA PATRA
ROLL NO: 16/06/DBM/25

UNDER THE COMPANY GUIDE UNDER THE INTERNAL GUIDE

MRS. SMITA MOHAPATRA MR. LALATENDU KESHARI JENA

MANAGER-(HR) FACULTY, DEPT. OF BUSINESS MGMT.

KORAPUT CUO, KORAPUT

1|Page
 i
DECLARATION

I, the undersigned, hereby declare that this project titled, “Skill development”, is my own
work and that all the sources that I have used or quoted have been indicated and
acknowledged by means of complete references under the guidance of Mrs. Smita
Mohapatra, Manager HR in Engine Division. I submit this report in partial fulfilment of the
requirement for the Degree of MBA from Central University of Orissa.

---------------------------------------------
Swagatika Patra
---------------------------------------------

2|Page
 ii

ACKNOWLEDGEMENT
I express my heartiest indebtedness to Mrs. Smita Mahapatra, Manager HR for her immense
help while continuing my summer training at ‘Hindustan Aeronautics Limited’, Engine
Division, Koraput by providing necessary documents and materials.

I would also like to express my sincere gratitude to Mr. P. Natraj, Manager (Training) for
giving me an opportunity to undertake a project in HAL Koraput Division.

I am greatly indebted to my professor Mr. Lalatendu Keshari Jena for his help in preparing
my project report for the better shape than it would otherwise have been.

I am also thankful to the staff members of HR Department for their support and assistance,
for giving assistance time from their busy schedule and guiding me to complete my project
successfully.

3|Page
 iii

ABSTRACT

The skill development program will assist the Government in the implementation of a pilot
program to stimulate the private sectors, public sectors and government sectors through a
demand driven and competitively based mechanism. It is consider as a major policy agenda
in the past few years.

Hindustan Aeronautic ltd. having higher and better skilled people can easily face challenges
and grab opportunities in their work.

Key words:

In India the formal sector employs nearly 90% of the work force, most of whom are either
non-skilled or inadequately and there is very little investment or opportunities for formal
skilling.

According to the National Sample Survey Organisation (NSCO) report, two types of
vocational training are available in India

1) Formal
2) Informal

According to the NSCO report, vocational training is received by only 10% of the person
aged between 15 and 29 years out of this only 2% receives formal and non-formal training
constitutes the remaining 8%. In case of formal training received by that particular age group
only 3% is employed.

So Hal is also helping out in the skill development program by providing physical
infrastructure for giving formal training to the people of rural area especially under Pradhana
Mantri Kaushal Vikas Yojana (PMKVY)

4|Page
 iv

CERTIFICATE OF COMPLETION FROM THE INTERNAL

GUIDE

This is to certify that Miss. Swagatika Patra has worked under my guidance for her project on
“SKILL DEVELOPEMENT” in Hindustan Aeronautics Limited, Engine Division and her
report is an independent and bonafide work done by her.

I wish her all success in her life.

Date:

Place:

Dr. Lalatendu Keshari Jena

Faculty, Dept. of Business Mgmt.

CUO, Koraput

5|Page
 v

TABLE OF CONTAIN

Pages
Declaration..............................................................................................................i

Acknowledgement....................................................................... .........................ii

Abstract.................................................................................................................iii

Certificate of completion from the guide..............................................................iv

Certificate of completion from the guide...............................................................v

CHAPTER-1: INTRODUCTION
1.1. Introduction......................................................................................1

1.2. Background for the study.................................................................1-3

1.3. Importance.......................................................................................4

1.4. Objective of the study.....................................................................5

1.5. Scope of the study..........................................................................5

1.6. Research design..............................................................................6

1.7. Data collected.................................................................................6

1.8. Place for the study..........................................................................6

CHAPTER -2: LITRETUE REVIEW

2.1. Human resource development...........................................................7-8

2.2. Training and development.................................................................8-9

6|Page
 vi

2.3. Training needs assessment....................................................................9-10

2.4. Literature review on skill development.............................................10-56

CHAPTER-3: INDUSTRIAL PROFILE

3.1. Brief history of HAL..........................................................................57-59

3.2. Vision, mission and objective............................................................59-60

3.3. Location and complex of HAL Division...........................................60-62

3.4. Various range of Products.................................................................62

3.5. Suppliers of HAL...............................................................................63

3.6. HAL customers..................................................................................63-65

3.7. Joint ventures......................................................................................65

3.8. Awards and achievements..................................................................66-70

3.9. Company profile of HAL, Koraput....................................................71-77

CHAPTER-4: FUNCTIONAL PROFILE OF COMPANY HR

4.1. Functional profile............................................................................78

4.2. Functional sections.........................................................................78-92

CHAPTER-5: CONCEPTUAL PROFILE

5.1. Skill Development policy..............................................................93-108

5.2. Skill Development Quality Management......................................109-149

5.3. Skill Development Quality Assurance..........................................150-153

5.4. Training for Trainers.....................................................................153-154

5.5. Training program for rural people................................................154-158

7|Page
 vii

CHAPTER-6: REVIEWS
6.1. Reviews......................................................................................159-162

6.2. Conclusion....................................................................................162

CHAPTER-7: FINDINGS, SUGGESTION, CONCLUSION OF

SUMMARY
7.1. Findings and limitation……………………………...163-165

7.2. Suggestion…………………………………………..156-166

7.3. Conclusion…………………………………………..166

CHAPTER-8:
Bibliography.....................................................................167-168

CHARTS
1. Employees competence management.................................................123

2. Process of assessment of skill gaps....................................................124

3. Guidelines for the policy....................................................................125

4. Skill development models..................................................................126

5. Training process.................................................................................127

6. Skill development portal....................................................................130

7. Skill development portal output.........................................................131

8. Balance score card..............................................................................144

9. Organisational chart for the skill development...................................145

10. Skill development organisation chart.................................................146

8|Page
 viii

11. Process approach of skill training..................................................

12. Process model for skill development management System .............150

TABLES

1. Employability attribution valued by employees.................42

2. Skill with people and their level of importance..................43

3. Dimension of service quality in the hospitality industry....51

4. Obstacles to improve the small firm business

Performance .....................................................................52

5. Divisions of HAL across the country.............................60-62

6. Skill & trades according to individual skill......................103-105

7. Skill training modules of Nipun and Praveen..................105-106

8. Skill levels........................................................................113

9. Essential skills and cross functional skill requirement.....134

10. Skills required for factory of future................................135

11. Skill required for important technology for future manufacturing

activity...................................................................................136

12. Identification of skill requirement and assessment of skill

gaps.......................................................................................139-140

13. Matrix for critical skill....................................................141-143

14. Training given by ASMACS for different trades............155

9|Page
 1

CHAPTER-1

1.1. INTRODUCTION
Skill development refers to imparting an individual with required set of skills. Skills and
knowledge are important factors for economic growth of the country.

Every organisation requires some material, machine, man force to perform the task and
achieve the organisational goal. For that proper sets of skilled are required to handle the
machine and man in proper way and produce the result in efficient and effective manner. So
skill is need by organisation for touching the heights. So skill development is one of the
initiatives taken by the organisation for smooth running.

The main of the skill development is to achieve growth through:

a) Enhancing individual’s employability to meet labour market demand.

b) Improving productivity and living standards of the people
c) Strengthens competitiveness of the country.

1.2. BACKROUND FOR THE STUDY:

Skill development is an initiative scheme taken by the Government of India for the
recognition and standardisation of skills. It was launched by Prime Minister Narendra
Damodardas Modi on 16th July 2015which aims at train over 40 corer people in India in
different skills by 2020. It includes various initiatives of the government like “National Skill
Development Mission”, “National policy for Skill Development and Entrepreneurship,
2015”, “Pradhana Mantri Kaushal Vikas Yojana (PMKVY)” and “Skill Loan Scheme”.

HAL is also stretching its hand to help the government out in the
generation employability by adopting the scheme of “Pradhana Mantri Kaushal Vikash
Yojana (PMKVY)”

Pradhana Mantri Kaushal Vikas Yojana (PMKVY):

This scheme launched by the Union Cabinet Chaired by Prime
Minister, Shri Narendra Damodardas Modi on 16th July 2015. This is the flagship scheme for
skill training of the youth to be implemented by the new Ministry of Skill Development and
Corporation (NSDC). The scheme will cover 24 lakh persons. Skill training would be done
based on the National Skill Qualification Framework (NSQF) and industry led standards.

10 | P a g e
 2

The demand is assessed on the basis of recent skill gap studies conducted by the NSDC for
the period 2013-17, for the assessment of demand of central Ministry/Department/State
Governments, industry and business would be consulted. Skill training under the new scheme
will primarily be focuses on the first time entrant to the labour market and primarily target
class 10 and class 12 drop outs. The scheme will be implemented through NSDC training
partners. Currently NSDC has 187 training partners that have 2300 centres. In addition,
Central /State Government affiliated training under the scheme.

Skill Development Management System (SDMC) would be put in the

place to verify and record details of all training centres a quality of training locations and
courses. All persons undergoing training would be required to give feed back at the time of
assessment and this would become the key element of the evaluation Framework
effectiveness of the PMKVY scheme. A robust grievance redressal system would be put in
place to address grievances relating to implementation of the scheme. An online citizen portal
would be put in place to disseminate information about the scheme.

1.3. IMPORTANCE
With the advancement of the technologies and process in the Aircraft/ Aerospace
manufacturing and assembly techniques, there is a need for up-skilling and re-skilling
the employees in new technologies and processes to make them competent to perform
the job roles to the required standards thereby improving the competitiveness and
performance of the company.
This calls for life-long learning and continuous development measures to meet the
skill requirement of the company. It also involves skilling of the employees in
different job roles to make them perform multi-skilling jobs.
The skill development policy is formulated with the intent of bring various skill
development measures throughout the company on a single platform for the company
on a single platform for standardisation of the process of skill development aligned
with job roles standards, curriculum, quality assurance and effective measurement
system.
The policy will also aid in identification of skill gaps with job roles standards as
reference points and promote multi-skilling and multi-tasking. The skill development
initiative will also help in addressing the gaps through carefully designed training
curriculum and modules delivered by well equipped training centre.

11 | P a g e
 3

1.4. OBJECTIVES

A few studies have been conducted on various aspects of HAL. In the present study an
attempt is made to analyse skill development.

Hence the study sets the following objective before it:

To develop a large base of quality conscious skilled workforce relevant to the current
and emerging needs of the company.
To establish a flexible delivery mechanism for skill development that responds to the
characteristics of wide range of skills needed by the company.
To promote consistent commitment of all division of HAL and their executives to
own and actively support skill development initiative and system.

1.5. SCOPE
The policy is applicable to all direct and indirect workmen in the technical and non-technical
disciplined department of the company.

1.6. RESEARCH DESIGN

The present study is based on primary and secondary data.

Primary Data:

The source of primary data was collected through the discussion with the concerned
executives of the organisation.

Secondary Data:

The secondary data includes information from company website, official records.

1.7. DATA COLLECTED

The relevant data and information for the purpose of study of skill development has been
collected through secondary sources which are collected from ministry of labour and
development and from HAL magazines, paper, internet and other sources were utilized.

1.8. PLACE FOR THE STUDY

The total project work was carried out in Engine division of HAL (Koraput Division),
Sunabeda.

12 | P a g e
 4

CHAPTER-2
2.1. HUMAN RESOUSE DEVELOPMENT
Human resource development is the part of human resource
management that specifically deals with the training and development of the employee in
organisation. Human resource development includes training of a person after he is hired first
and providing him opportunities to learn new skills and explore his knowledge. It also
enhance the skill set of existing employees by providing them training on the new advanced
technologies and up-skilling and re-skilling the employees on their field regarding the new
changing environment.

According to Leonard Nadler:

“Human resource development is a series of organisation activities, conducted within a

specialised time and designed to produce behavioural changes”.

In the words of Prof. T.V. Rao:

“HRD is a process by which the employees of an organisation are helped in a continuous and
planned way to

(i) Acquire or sharpen capabilities required to perform the various function associated with
their present and expected future roles

(ii) Develop their journal capacities as individual and discover and exploit their own and
organisational development purpose

(iii) Develop an organisation culture in which superior-subordinate relationship, team work

and collaboration among sub-units are strong and contribute to the professional well being,
motivation and pride of the employees.

In the opinion of M.M. Khan:

“Human resource development is the across of increasing knowledge, capabilities and

positive work attitudes of all people working at all level of business undertaking”.

Human resource development is essential for any organisation

that would like to be dynamic and growth oriented. Unlike other resources of the
organisation, human resources have rather unlimited potential capabilities. HRD is a process,
not merely a set of mechanism or techniques. The mechanism and techniques such as
performance appraisal, counselling, training and organisation development interventional are
used to initiate facilitate and promote this process in continuous way. Because the process has
no limits, the mechanism may need to be examined periodically to see whether they are
promoting or hindering the process. Organisation can facilitate this process by planning for it,

13 | P a g e
 5

by allocating organisations resource for the purpose, and by exemplifying an HRD

philosophy that values human beings and promotes their development.

2.2. TARINING AND Development

Training and development is a function concerned with
organisational activities aimed at bettering the job performance of the individual and group in
organisational set ups. Training and development can be described as “an educational process
which involves the sharpening of skills, concepts, changing of attitudes and gaining more
knowledge to enhance the performance of employees”.

Training is the process for providing required skills to the

employees for doing the job effectively and efficiently and qualitatively. Training of the
employees are not continuous, rather it is periodical in nature. Generally, the training is given
by the professional and expert in their elated job or field. There are many types of training
programs like on the job training, off the training, sensitivity training, management
development training, behavioural training etc.

Training and development is essential because newly appointed

labours and employees required detailed information of effective performance. People have
not to work but to work efficiently, qualitatively under minimum supervision and it should
help in minimising wastages, spoilage and produce qualitative goods and services. Apart
from that employees needed to be updated with new techniques, tools and equipments to cope
with the market and competition on the ground.

Training keeps the employees motivated and increases their

belongingness towards the organisation. It creates a positive vibe in the job environment.
New skills and knowledge also helps in reducing the boredoms. Most importantly it increases
the level of productivity, return on investment and helps in decreasing the cost of production,
wastage and spoilage.

2.3. TRAINIING NEED ASSESMENT

Training need assessment is the process of identifying the skill gap between the present skills
set obtained by employees and the skill required for future to accomplish the organisational
objectives. It helps in identifying what kind of training is required for the

14 | P a g e
 6

employees. This is an assessment that looks at employee and organisational knowledge,

skills, abilities, to identify any gaps or need. Once the training needs are identified, then you
need to determine and develop objective to be accomplished by the training.

The training need assessment helps an organisation to achieve its

present and future objective smoothly. It reduces the gaps between the employee skills and
skill required by the job, department and organisation. The training needs assessment survey
can also form benchmark for determining effectiveness of the training administrated.

2.4. LITRETURE REVIEW ON SKILL DEVELOPEMET

Increasing number of corporations around the world are
recognizing the fact that, in order to gain competitive advantage, in addition to the obvious
skills, they also need to make sure that their people know how to handle themselves at work
and relate with their peers and customers. Self-awareness, self management skills, and ability
to influence others are some of vital competencies employees of a progressive organisation
need to possess. All these together can be referred to as soft skills.‟Soft-skill set is often the
underlying edge that trademarks a company for professionalism and the use of these skills
elevates organisation with a better competitiveness in the industry. Most compliments and
appreciations that executives and managers receive have been linked more with the use of
soft skills than with your actual knowledge. Companies have now started linking soft skills in
employee performance appraisals and compensation packages. They are considered as
important criteria during recruitment. Soft skills such as interpersonal communication,
business ethics, effective presentations, e-mail etiquette, self-awareness, persistence,
confidence, self-motivation, trustworthiness, adaptability and a talent for collaboration now
weigh higher importance and can no longer be ignored. The workplace reform has brought
many changes to the way things are done in various industries and accompanying these
changes has been the growing recognition of the need for 'soft skills’.

Many studies have been undertaken around the world on the relationship
between various employee skills and performance. The studies were reported in different
industries, such as construction, health, retailing, IT, education, and hospitality. It has been
observed that most of these studies were focused on a few skill components and did not
attempt to frame a comprehensive list of performance enhancement skills. Some of the
studies closely related to this topic of research are reviewed hereafter.

There are studies in construction industry on the role of various skills

as a tool for improving the performance. Studies have pointed out a series of ongoing
difficulties in the crucial areas of the industry due to the lack of soft 17 and inter personal
skills. Hager, Garrick and Crowley (2000), in their study „The Generic Competencies and
Workplace Reform in the Australian Construction Industry‟, identified teamwork,
communication and planning and organising as prominent amongst the critical skills for
performance. Building and construction workers who are incorporating soft skills into their
work practices are be compared legitimately to the workers in knowledge industries. This
research was conducted with strategic partnership with industry research and training, the
University of Technology, Sydney and the New South Wales department of public works and
15 | P a g e
 7
services .The three-year project provided the research team an opportunity to investigate the
industry in several phases. This research project identified significant progress in the
development of various skills as a workplace reform in the building and construction
industry. The findings were derived mainly from interviews with employees of large
companies that are undertaking major projects.

This study identified the competencies that are significant to

the construction industry and verified the critical role of competencies like communication,
teamwork, planning and organising and to a lesser extent collecting, analysing and organising
information. In final phase, middle and senior management were interviewed about two
aspects of workplace reform such as occupational health and safety and environmental
practices. This data was then analysed in relation to the role of the competencies and the
management aspects of construction work. This research identified that senior and middle
management spend significant time utilizing the competencies such as communicating,
problem solving and planning, and organising, collecting and analysing information. The
Meyer Key Competencies form the basis of the concept of generic competencies used here.
This study takes an integrated approach to competence. This means competence is meant in
general terms of knowledge, abilities, skills and attitudes.

This research challenged the common view that these skills are
inborn and cannot be developed, i.e. you either have soft skills or you don't‟. Many instances
were identified where workers had been able to improve and refine their soft skills with
experience and practice. Management too is able to employ a range of strategies that support
the development of these skills development. This study identified a wide range of strategies
that both 18 organisations and individual workers can employ successfully to further improve
their own and others' soft skills. Two other main themes that emerged from the research were
the holistic interweaving of soft skills and the need for them to be learned and adapted to the
unique and changing circumstances of each building and construction site. Teamwork,
communication, planning and organising were identified as the important components of
good OHS&R (occupational health, safety and rehabilitation) practices that we encountered.
The successful spread of better OHS&R practices throughout the building and construction
industry in the 1990s is one way in which soft skills have been incorporated into the
performance of the industry. The presence and strengthening of the soft skills helped to create
learning cultures. The growing emphasis on environmental aspects of building and
construction was seen as an emerging area requiring further development of soft skills.

The findings about the holistic interweaving of soft skills and

the need for them to be learned and adapted to the unique and changing circumstances of
each building and construction site are supported by earlier research findings about generic
competencies. (Hager et al. 1996).

When any significant component of work is considered, there

tends to be a clustering or interweaving of key competencies together with more specific
competencies as well as features that are particular to the context. The key competencies are
major features of quality at workplaces that focus on high performance or high quality
products (Field & Mawer, 1996).

16 | P a g e
 8

According to Ford (1990), the internationalisation of demand has

meant organisations to transform themselves to provide greater quality; improvement and
innovation; adaptability and reliability; and better services. The required transformations by
organisations focus on a more multifunctional and multi-skilled workforce. This is facilitated
by the creation of a responsive workplace culture. As Ford points out, there are diverse
strategies for achieving this, but they generally integrate new kinds of work organisation,
innovations in technology, innovative skill formation practices, and innovations in employee
commitment, participation and remuneration. It is identified that many of these, especially
new kinds of work organisation and innovations in employee commitment, participation and
remuneration, are 19 just the kinds of strategies that have driven successful workplace reform
in the Australian building and construction industry over the last decade. However skill
formation practices are one area where further innovation is needed. To see the reason for
this, the full scope of skill formation practices needed to be considered. Ford argues that 'skill
formation' should be viewed as 'an emerging holistic concept that embraces and integrates
formal education, induction, continuous on-the-job learning, recurrent off-the-job learning
and personal development'. By pointing to the importance of continuous on-the-job learning
in skill formation, Ford is endorsing a wider notion of learning in the workplace that applied
in the previous industrial era.

Haskel J et al (2003) attempted to answer three questions: First, do

more productive establishments employ a more skilled workforce? Secondly, if so, which
skills matter for productivity? And the last, how much of the variation in productivity is
associated with variation in skills? The researchers find that there is enormous interest in
these questions at a number of levels. The data were collected with four main considerations.
Firstly, data on skills and productivity at the plant level; secondly, since productivity is likely
to be determined by a host of unobserved factors, a panel tried to control at least to some
degree for these; thirdly, to frame a number of measures of skills. In particular, whilst
qualifications have often been used as a formal skill measure, it has been argued that more
informal skills (attitude, time keeping etc.) are just as important to company productivity.
Usual measures such as work experience, years of education or test-scores, fail to capture the
so-called „soft skills‟. Fourth, average productivity inside an establishment is also likely to
depend not just on its average skill level but also the organisation of its human capital, so
distribution of the workforce skills are concluded as important.

Haskel J et al (2003) tried to fill the evidence gap using two data
sets, the Employer Skills Survey (ESS)* and the New Earnings Survey (NES) **. The NES
has information on wages, occupation and age of workers. Using the ESS data five different
potential measures of skills were calculated. The main skill measure used on the ESS is
derived from two questions. First, firms are asked to specify the most common qualification
held by their employees by nine occupational groups. Second, firms are asked to set out the
fraction of 20 workers who are in each occupational group. The occupations were managers,
professionals, associates, administrators, skilled, manual, machine operation personal, sales
and elementary occupations. The second measure is based on average occupation-based
skills. Some data sets have only occupation data, which is sometimes converted into skills. It
is done for comparability with other works. To construct skills from occupations, they
assigned a skill rank to each occupation. The second derives from the wage information and
the panel structure of the data. In a competitive economy with perfect information, workers
would be paid their marginal productivity at all times, and wages would therefore be a good

17 | P a g e
 9

measure of the market value of the workers‟ human capital. Data is therefore collected at the
reporting unit level, where a reporting unit is a plant or a group of plants. Each reporting unit
has its unique reporting unit identification number and an enterprise has enterprise group
identification number.

The main fact from the study was that more productive firms employ
and hire workers of higher skill. The more skills - more productivity correlation holds well
with many of these measures. Measures of formal qualifications found to be insufficient to
capture the complete picture of firm’s workforce skills. Human capital is again significant
and it is the person effect‟ that is found to be the most significant. There was again some
suggestion of more significant contributions from the highest skilled workers. However, there
is a significant correlation between skill and productivity (controlling for capital, materials,
and industry effects).

The researchers document that more productive firms do indeed hire

more skilled workers. First, in their sample of manufacturing firms, plants in the top segment
of the productivity rank distribution hired workers with, higher skills relative to plants in the
bottom sides of the productivity ranking. Second, they found that skill measures based on
qualifications (hard skills) and person affects from double-fixed effect wage regressions (hard
and soft skills) both affect productivity. Third, they estimate that the skills gap between the
top and bottom firms in the productivity distribution explains about a significant gap.

Abowd et al (2002a) had constructed skill measures by estimating a

panel wage equation controlling for person and firm effects and use the 21 estimated person
effects and the implied experience effect to measure skills at the business. This measure
captures skills in a way that qualifications cannot. He observed strong correlation between
employee skills and organisational productivity.

The study conducted by Hellerstein, Neumark and Troske (1999), match

a business level US data set with worker information for one cross-section and estimate
production functions using worker qualification, age and gender information. From this they
calculated relative marginal productivities and compared them to those from estimates of
wage equations.

Jones (2001) undertook a similar study using matched employee /

employer data in Ghana and finds that education is positively correlated with productivity.
This study is closest in spirit to Abowd et al (2002) where strong positive correlation between
skills and productivity was observed. They also find that the most skilled workers have a
disproportionate impact on productivity and that the least skilled workers have a
disproportionate negative effect on productivity.

Gamble Jos (2004), in his study explores training and skills development
in UK- and Japanese-invested retailer operations in China. The research carried out at twelve
retail stores in six Chinese cities between 1999 and 2003. An ethnographically orientated case
study approach was adopted to elicit contextualised accounts of interactive service workers‟
own perceptions of their training and skills development. Over 170 semi-structured
interviews were conducted with a cross-section of local employees and expatriate staff, with a
concentration on sales staff. Additionally, over 1100 employees completed questionnaire to

18 | P a g e
 10

Further ascertain their self-assessment of skill levels. It was found that these firms made a
substantial contribution to skills development, fostered and enhanced both directly by
company training and also through experiential workplace-based learning.

This study of multinational retailers in China has provided research

data that illuminates the nature of skills in the retail sector. This study relied primarily on
employees‟ own accounts of their skills development. It points to focus on multinational
retail firms‟ impact on workers‟ skills in developing nations. In addressing the nature of
skills in service sector firms, this study 22 also explores multinational enterprises‟
contribution to human resource development in a developing economy.

It has been found that it required good interpersonal skills to strike the
right balance between persuasions, creating a basis of trust. The service offered by sales staff
both in terms of helpfulness and their ability to advise customers on products was seen as
crucial to the firm’s success. It was found that the main reason customers go to a retail store
is because of the customer service, the sales staff are very enthusiastic and patient about
explaining the product. The researcher has quoted one of the respondents of the study, a
showroom sales advisor, he says, if you explain well, customers will feel you’re an expert
and will wish to do business with you.‟ This form of differentiation, which takes time and
effort to develop and is difficult to replicate, required that staff had good product knowledge
and were polite and enthusiastic in their engagement with customers. For sales staff,
technology was not crucial as role of sales staff centred largely upon face-to-face interaction
with customers. Product knowledge was vital for sales staff to fulfil their roles.

Social skills were found helpful to get on well with customers, co-
workers and staff in other departments. A variety of observational and psychological skills
were found useful, and there was ample chance to develop these. Distinct skills were required
for dealing with angry customers. Respondents described politeness to customers as the key
feature that would attract and retain customers. Despite the large volume of customers,
employees were expected to bow and welcome each one.

Recruits appointed before store openings underwent three months

training, with attention to company history and policies, product knowledge, team-building,
job content, dress and appearance, use of the polite phrases, appropriate gestures and
behaviour, and bowing. Training stressed the necessity for employees to abide by strict dress
and behavioural codes and to show faultless, high levels of enthusiasm, warmth and
politeness to customers. Customer service training was often taught using role-play exercises
in which employees took the part of customers. The firm had a relatively light touch in terms
of scripting customer service interactions.

Employees‟ desire to help customers encouraged them to upgrade their

knowledge and skills. The company also adopted various direct and indirect material
incentives to increase motivation and learning. It was crucial not only to attract and train
suitable employees, but also to ensure employees remained in the firm thus minimising lost
training investment. Promotion prospects, training, motivation and retention were mutually
reinforced. Retention was important because the skills involved took considerable time and
effort to develop; they were also harder to buy-in, although many employees had developed

19 | P a g e
 11

tradable skills and could easily find other jobs. The arrival of foreign competitors had begun
to increase competition not only for market share but also for skilled workforce.

It has been found that skills and knowledge grew not only from
company provided training, but also incrementally from workplace experience such as
sharing knowledge and experience with co-workers. There was also the potential to learn
from customers as customer asks difficult questions and exhibit different behaviour.

Sales staff required flexibility, knowledge and skill to respond to

customers. In a highly competitive market, the company’s success depended upon staff being
experts‟ and skilful in the „drama of persuasion‟. In the UK, training provides incremental
increases in these dimensions; in China there was often a qualitative increase in skill levels.
The skill levels requirements of sales staff in Japan were higher than those needed by their
counterparts in the UK. In part this related to the social skills required in an environment
where selling was „more used to negotiating‟. The Japanese firms placed a greater emphasis
on predictability in employee-customer interactions. However, within this predictability there
was space for skills development.

Employment in retailing is generally perceived to fall within the

category of increasingly deskilled jobs. It might be necessary to re-think assumptions about
the nature of skills in the service sector and the expectation that up-skilling is primarily to be
found in technologically demanding jobs. Technology had a limited impact on the work of
sales staff. Despite this there has been a substantial learning experience for many of the
employees interviewed. Skilful workers were needed in order to train and advise the amateur
customers.
Researchers are likely to take the presence of rules and routine as
prima facie evidence for the absence of skills. However, the data from this research has
indicated that even the most tailored roles can still allow a space for the development of
product knowledge, organisational and social skills. Typically, Chinese workers sought
employment in these foreign multinationals in anticipation of not only better pay and
conditions, but also improved training and promotion prospects than locally owned firms.
Even when employee-provided training was relatively limited, employees regularly cited
significant learning from interaction with customers, fellow employees and managers.
Additionally, employees overwhelmingly perceived skills developed at these multinationals
as transferable to other workplaces.

The extent of learning and skill development outlined in this study

contradicts the expectation of Frobel et al. (1980) that foreign-invested firms do little to
benefit the human resources development in host countries. The proportion of „value-added‟
to employees in China in terms of training might be significantly greater than in the
investors‟ parent countries. The evidence presented in this study does not preclude such a
development, although even the recognition of a transitional skills effect is of intrinsic
interest and worthy of further investigation. Local configurations of skills and skills
requirements will continue to differ from those found in western countries.

20 | P a g e
 12

Noorbakhsh and Paloni (2001) found that human capital is a statistically significant
determinant of FDI inflows. Policy makers focus attention on the importance of workplace-
centred training and skills development schemes such as those implemented in Singapore and
Malaysia, as valuable adjuncts to inputs in formal education.

In businesses studied by Jones et al. (1997) and Rosenthal et al.

(1997), managers pursued polices intended to increase employee commitment, motivation
and flexibility. In hotel chain management; high quality, authentic and more intense social
interactions between employees and guests were the key in gaining competitive advantage
(Jones et al. 1997).

Thompson et al. (2001) acknowledge that social skills are crucial in

interactive service work. Front-line staff would transfer effective styles of interacting in their
personal life into dealings with customers. Such an approach can be construed as widening
the potential for employees to utilize, at the very least, their social skills.

Many of the skills required and fostered were human interaction

skills. In the context of US department stores, Benson (1986) highlights the centrality of
social interaction and skills of persuasion. He argues that „you persuade customers to buy by
introducing the products well, to persuade them to buy you must explain very well, when
they hear that what you say is reasonable they will buy‟. Researcher adds, at times, customers
were portrayed as blank sheets or empty vessels, ready and willing to be led by sales staff
provided that they possessed the requisite skill.

Frenkel et al. (1995), confirms that Social and people skills, which
„include the capacity to organise and communicate with, to learn from, work with and impart
knowledge to others‟ are especially important. Although there was a tendency in the
companies for social skills to be taken-for-granted, it was recognised that they are selected
for during recruitment, and also that they could be honed and developed. Frenkel et al.
mention about a good recognition system practiced in some of the stores, the gold certificate,
and the requirements of this certificate involved all the elements of „theoretical knowledge,
creativity, and use of analytical and social skills.‟

Kerr et al. (1973) optimistically anticipated that technological

development would lead to more complex types of work task and therefore rising levels of
skills and responsibility. The study focused on the Skill sets in the service sector. Since much
of the initial debate on skill development and utilization focused upon the impact of
technology and on the manufacturing sector. In this study the researchers re-looks at the
technique of scripting customer service interactions as a means to improve quality of
customer interaction.

George Ritzer (1998), building on the work of Max Weber and F.W.
Taylor, has explicitly focused upon what he perceives to be the dominant trends in the service
sector. In the same way as technology removes workers‟ manual skills, so scripts usurp their
verbal and interactive skills. In the growing literature on HRM in the service sector, there are
divergent perspectives on the nature of work in this sector. Proponents from the new service
management school focusattention on human resources as the key means for firms to
differentiate themselves from competitors (Bowen and Lawler 1995).

21 | P a g e
 13

Implicit in this approach is that workers‟ empowerment will help

to create a customer satisfaction-workforce satisfaction mirror. For some firms, however,
more personalized service is considered as a source of value-added differentiation. Overly
scripted interactions lack sensitivity to individual situations and may be resented by
customers who see them as insincere (Leidner 1993).

Nickson et al. (2001) in his study „managing empowered workers

and the service encounter in an international hotel chain‟ use the term „aesthetic labour‟ to
describe the employee with good interpersonal and social skills. He emphasised the
importance of such workers in the productivity of an organisation.

Prasad Kaipa et al. (2002) conducted a study on the role of soft

skills development in the entrepreneurial success. They categorized important soft skills as
leadership, decision-making, conflict resolution, negotiation, communication, creativity and
presentation skills, and observed that soft skills are essential for entrepreneurial success and
maximizing human capital in any enterprise. The important observations of the study can be
summarised as: ignoring or failing to pay adequate attention to soft skills development will
impede entrepreneurial success; the soft skills are key factors that make or break a company;
soft skills are critical to all facets of the venture; they can provide great energy and cohesion
for the members of and enterprise and thus, provide a way to get the highest return on the
investment in terms of human capital; while professional skills may open the door of
opportunity, soft skills keep an entrepreneur in the driver’s seat; conversational skills and
dealing with conflict are found to be the critical skills for building good entrepreneurial
teams. The study also found that very few executives are good in dealing with conflict in
teams.

Findings of the study emphasized the importance of hiring the

right people with the right skills-set. They observed a concept called „human capital
triangle‟ i.e. the right people, the right skills and right management system, which constitute
the three corners of this triangle. Maximizing human capital requires the right balance
between the executive team and development of appropriate skill-sets with proper talent
management systems and organisational culture. When the talent management system,
including executive teams and skill sets (technical, professional and soft skills), are not
balanced and optimised, then financial capital and human capital do not pay the returns.
When the focus is too much on „hard technical skills,‟ the dynamics in the workplace
become difficult to manage and many companies never see their first anniversary because
they lack soft skills. Without soft skills; poor decisions are made, negotiations go poorly,
communication lacks passion, and leadership withers away fairly quickly.

Prasad kaipa et al. described the soft skills as the keystones to

success and good leadership presupposes refined „soft skills.‟ some of the skills are related to
attitudes, while others are processes, and still others relate to awareness, self-control, and
team focus, influencing others and building relationships. The researchers observed that
nearly one-quarter of executives in high-tech positions are in trouble due to poor soft skills.
About 70% of managers feel that soft skills are more important than they were five years ago.
It is stated that „Technical skills get you at the door, but soft skills keep you at the job‟.
Companies sink or swim based on soft skills regardless whether technologies keep them

22 | P a g e
 14

afloat temporarily. According to Fortune's Most Admired Companies, 1998, leadership is one
of the key soft skills along with communication, creativity, learning and teamwork.

The study conducted by Rosemary Batt (2000) analyses how

organisational restructuring is affecting managerial labour markets. This study, drawing on
field research from several bell operating companies and also from a detailed survey of
managers in one company, considers how organisational restructuring affects the
employment levels, the nature of work, and the career tracks of lower and middle level line
managers. The central argument of the research is that a new vision of organisation has taken
hold – one that replaces bureaucracy with enterprise.‟ This vision, however, entails sharp
contradictions because it relies on two competing approaches to organisational reforms, one
that relies on decentralizing management to lower levels to enhance customer responsiveness;
the other that relies on re-engineering and downsizing to realize scale economies. While the
first approach views lower and middle managers as central to competitiveness, the second
views them as indirect costs to be minimized. The central question is whether or how the two
approaches can be reconciled. The evidence from this case study shows that restructuring has
had the unintended consequence of creating new organisational cleavages: between lower and
middle level managers on the one hand, and top managers on the other.

The major findings of this study (Rosemary Batt, 2000) were that
ninety-three percent of all managers responded that the skill needed for their jobs were
changing, but the kinds of new skills varied significantly by managerial levels. Over 60
percent of lower level managers in customer services cited technical (computer) skills as the
most important new ones, whereas 75 percent of middle managers cited „soft‟ skills in
leadership, general management, quality, and labour relations. The pattern was similar, but
less pronounced in network, where 53 percent of lower managers ranked new technical skills
in first place and 60 percent of middle managers ranked soft skills as the critical new ones.
Management training emphasized a softer approach, listening rather than dictating skills.
Managers had to learn to discuss and negotiate with employees and union leaders over
problems as they arose, rather than only in the context of grievances. Changes appear to be
more in the thrust of training in new areas such as knowledge of business, marketing, and the
industry; and management and leadership skills.

There were enough studies on the importance of soft skills for

information science (IS) and Information Technology (IT) professionals. Further, there has
been number of specific studies analysing the role of education curriculum in equipping the
IT students the relevant skills necessary to perform the job to the expectation of the industry.
Finding of the majority of the studies in this regard reveal that there exist a visible gap
between the industry demands and academic input. It has been found that only hard skills are
being given importance in the curriculum and the soft skills are neglected which limits the
quality of performance.

In the study by Turner, R. (2001), to find out the skill set

required by an Information Science (IS) professional to perform their tasks effectively and
efficiently, focus is being given to a range of soft skills that may be attitudinal and influenced
by life and work experiences. The researcher describes an IS/IT professional as a person who
is endowed with technical skills formally learned during the formal education, has some other
non-technical academic knowledge studied during the course. The Information Science

23 | P a g e
 15

professional also has personal qualities and attributes that are sometimes intrinsic to the
individual and sometimes developed and enhanced during the education process and is likely
to have some concerns and expectations surrounding the work environment. These qualities
and qualifications are not isolated from each other but, the researcher suggests, interact and
affect the individual.

This study suggests that these skills, attributes and work

environment do not sit in isolation from each other, but interact in an unmeasured way. There
is a noticeable difference in the performance at work with the varying range of soft skills in
getting on well with people and communication skills being the strongest skills. The value of
this research is that a clear picture is revealed that shows the interactions between these
important elements in a quantitative way.

The purpose of this study was to present the results of a study

utilising structural equation modelling methods to develop a model that shows the possible
relationships between these areas and the perceived emphasis that students place on these
skill sets. Soft skills are very important in this model and this has been known for some time
that employers are seeking a variety of these skills in their new employees. This model
supports the importance that these qualities constitute a better Information Science employee.
It also indicates that these skills appear to strongly influence the work performance.

An instrument is developed and modified by the authors to

include some additional items. Questions covered technical topics in undergraduate
Information Science degree programmes, core non-Information Science subjects, personal
skills/attributes and a number of work features and incentives that are appealing to graduates
seeking employment in the field.

On the perceptions of what skills and competencies an

Information Science professional should have from the position of individual stakeholders
such as academics, employers, students and others. There have been several studies
concerning the comparing the different views of the various stakeholders. Other studies have
investigated the importance of soft skills in the development of the Information Science
professional from different perspectives. The outcome is a model, which fits the data and
which successfully relates educational skills (both technical and non-technical), soft skills
and personal attributes and work attributes.

A work has been done investigating skill requirements of

Information Science graduates including soft skills. Determining those skills that the
employers of new Information Science graduates seek is important for educators in designing
curriculum and advising students (Van Slyke, Kittner, & Cheney, 1997).

Gupta & Wachter (1998) suggest the need for Information

Science students to develop skills and abilities in various areas including teamwork,
creativity and communication and propose a capstone course to achieve these aims.

Kakabadse & Korac-Kakabadse (2000) highlight the

changing role of the Information Science/IT professional and identify the skills and
competencies required for development in the early twenty-first century.

24 | P a g e
 16

Turner & Lowry (1999a), in a study across various Information

Science job classifications found that systems development skills and interpersonal skills
were common across classifications but programming skills were more important for entry-
level Information Science positions. Results were obtained in a study of 102 students and 54
employers of Information Science graduates.

Ross & Ruhleder (1993) suggest the Information Science

curriculum should concentrate on developing technical & business skills, working in a
collaborative setting, instilling sensitivity to social and organisational impacts and to
inculcate the ability to self-learn in a rapidly changing technological environment. It has been
asserted that technical skills are not the total answer in preparing Information Science
professional. It is observed that many system shortcomings arise from the fact that they do
not address business objectives and neither are they sensitive to user needs or concerns.
Further, they suggest, programs aimed at developing Information Science professionals of the
future must cover a wide range of skills and assist to integrate these skills in complex
environments.

Ashley & Padgett, (1997); Turner & Lowry, (2001a)have shown that
despite the call from Information Science employers for more business orientated skills in
exiting Information Science students, core business subjects do not rate highly.

It has been suggested that it is not sufficient for graduates to just

have technical capabilities but should be aware of the employer need for professionals to
have responsibility for their work and the importance of appropriate ethical behaviours (Little
et al., 1999). They further suggest a need to include these aspects in the curriculum of current
programmes. They (Little et al., 1999) discuss the „industry-academic gap‟ that leads to
dissatisfaction amongst employer groups. They suggest that the lack of components of
professional skills and workplace issues in the curriculum is a reason for this gap.

Wrycza et al. (1999), state that the IT profession is being pulled in

opposite directions, one being the human orientation and the other towards the technical skill.
It has been suggested that the IS/IT profession is handicapped by the differing needs of
business and geography.

The range of activities IT professionals are called upon to perform

leads to a lack of formal career structure that matches skills with roles causing confusion
among stakeholders (Hemingway & Gough, 2000, p179).

Gillard (2000)maintains that there should be two aspects of a

university course that require consideration, they are employer expectations of graduates
candidates and student preparedness to a course to make sure that students are equipped with
employability skills like soft skills.

Calitz, Watson, & deKock (1997) endeavoured to find predictors to

success in matriculating high school students. They identified several new performance and
psychometric criteria useful in selecting IT students. In addition they identified non-technical
skills that are important for success in a business environment including business knowledge,

25 | P a g e
 17

social skills and communication skills as important criteria. They particularly noted the
importance of English language, and especially technical English.

In addition, they also observed that while the investigative

personality type of individuals succeeds in the IT industry, the social personality type is also
becoming increasingly important.

An early study by Young (1996), looking at the importance of a

range of technical and interpersonal skills to industry when employing new IS personnel was
replicated in a study of students from differing backgrounds.

Dramatic changes in the economy and the consequent corporate

restructuring are bringing about significant changes in the structure of jobs, skill
requirements, and the labour–management social contract. A central dilemma in the observed
changes is that the need for a more skilled workforce has arisen and at the same time firms
are restructuring in ways that reduce their capacity and/or willingness to provide workforce
skill development. The economy of the 1990s is generally characterized as one of intense
global competition, rapid technological advance, and significant transformation in work
practices and firm structure. New job and organisational structures are seen to require greater
levels of workforce skill. More generally, it is thought that the best way for both firms and
workers to develop a competitive advantage in the global economy is to improve the level of
workforce skills (Murnane and Levy, 1997).

Howell and Wolff (1991), find a compositional shift toward

higher-skill occupations in the economy in the 1980s. But, more recently, Howell (1997)
observed that recent changes have been relatively small. The changes that appear to have
been most significant recently are increased demands for soft skills. Thus, provide clear
evidence of a significant skill shift in the 1990s because of changes in job content, with the
probable exception of requirements for the lower level jobs. In Ford’s system, work skills are
not those of craft but of attitude and behaviour, which become the focus of education for
students who will enter the production and front-line workforce.

A mutually interacting system requires limited task skills and

educational systems provide only basic skills and industrial acculturation rather than
occupational skills (Lynch, 1994). The focus of the study by Salzman, H. et al. (1998), is on
how structural changes in firms and jobs affect the skills needed and the involvement of firms
in skill development efforts. The researchers focussed on the broader issue of how firm
structure and behaviour shape a range of skill development opportunities, and they focussed
specifically on firms‟ engagement with post-secondary institutions for training and broader
skill development. This research identifies multiple factors that shape and influence firms‟
involvement in skill development, such as multidimensional analysis, they believe, is
necessary to answer the dilemmas in the current era of corporate restructuring.

They (Salzman, H et al. 1998) chose insurance as a representative

of service industry as it employs workers at a broad range of skill levels and traditionally
have a highly developed internal labour market in which on-the-job learning supplemented in
some functional areas with externally obtained education offered the potential for significant
mobility. In the life insurance market the product itself is undergoing changes, as it becomes

26 | P a g e
 18

a financial planning product and is thus in competition with other financial product
companies. The case-studies focus on the life insurance and financial services lines, although
all the firms studied are multi-line companies. These cases were supplemented by case
studies of firms that have actively engaged in significant skill development efforts as a way to
better understand the factors that do motivate firms to engage in skill development. Salzman,
Harold et al were concerned about is the skills for managers and some technical areas. The
most important value of HR is to improve its selection of managerial talent. This was a view
echoed explicitly or implicitly, by nearly all the HR people they interviewed. Hiring criteria
are no longer based on an assessment of a person’s ability to perform a particular function or
set of task-skills but rather on an assessment of his or her ability to master a host of skills and
responsibilities.

Job structure and skills requirements are changing, as companies

move their focus from operational efficiency alone to innovation and growth strategies. The
commonly discussed increase in skills due to broadening job structure and increased levels of
performance has occurred. The study found that much of the change is organisationally
driven (e.g., by use of teams, cross-selling, multiple service responsibilities) with technology
as a supporting but not a driving factor. The major skill needs as the selection criteria
identified in the interviews are for „soft‟ skills for lower-level employees and leadership /
managerial skills for professional/managerial-34 level employees. Sometimes there was a
skills shift to higher basic skills. Cross-selling in insurance, for example, requires agents to
have a securities license and thus involves passing a test that includes basic mathematical
knowledge and aptitude. The skills reported as lacking were „soft‟ skills of teamwork,
communication, willingness to learn, related skills and characteristics (Salzman, H et al).

In assessing content for technical education courses, the college

surveyed companies in the college’s geographic area. Eight of ten companies said
communications skills, oral and written, as the most important. They cited social skills as one
that would promote teamwork. Critical thinking and problem solving skills were also noted.
They had an advisory committee to develop requirements for these skills in the program but
remarked that it was difficult to balance these soft skills with education for more specific
skills. Service value additions are contributed by workers with a deeper and broader skill
base. (Salzman, Harold et al).

As firms change organisational forms they are also changing

job structure to support new competitive strategies. The changes in job structure are
fundamentally organisational changes designed to deliver services or produce goods
differently; although they often require new technology in a supportive role, technology does
not tends to be the driver of job structure change nor the most important factor defining the
changes.

Thus, often there is not a dramatic change in the hard technical

skills needed but there is a change in the capacity for learning (e.g., the ability to acquire
multiple job skills through training and/or on-the-job learning) and soft skills and
development of social character attributes (Salzman, Harold et al).

27 | P a g e
 19

Analysis of the organisational context of the skill shifts suggests

that factors influence the impact that the observed increase in skill requirements actually has
on firm’s skill development strategies. The compositional shift in the workforce establishes
hiring criteria at a level where skill development is at least adequate and often more than
adequate for the tasks. Abandoning the idea of finding qualifications as criteria because of the
wide variability of both hard and soft skills at that level and the difficulty of selection leads to
targeting an applicant pool that has higher technical skills than required and that has a higher
probability of having the soft skills needed.

Luria (1997), and Streeck (1991), argue that, in skill development

that involves the educational mission of the college as opposed to a more specific task
training such as the type of skill development that is durable and more likely to contribute to
sustained employment and productivity. All of them agree to the point that soft /interpersonal
skills contribute to the organisational productivity and often act as the differentiating tool in
the competitive business environment.

There have been studies in UK proving the correlation between

skills and productivity. Soft skills have been found as a crucial element in the overall skills
set. There have been studies specifically focussed in finding the skill gap in various sectors.
Most forms of qualifications and training leading to the enhancement of skills produce
benefits to individuals and to the firm. Studies suggest that a more highly skilled workforce is
associated with higher productivity and other positive organisational outcomes. There were
different studies conducted in the UK on the role of skill sets in the productivity of
manufacturing and service organisations.

Tamkin et al., 2004, have attempted to identify whether higher

skill levels among the workforce have contributed to the success of high performing firms.
Overall, the association between a highly skilled workforce and organisational performance
has been confirmed as a positive one. The first section of this study examines the productivity
gap between the UK and other countries. In section two, Evidence of the relationship between
skills, productivity and business performance is analysed. Section three outlines the nature
and extent of the skill deficiencies facing by organisations in the UK. The supply of available
workforce skills is examined in section four. Section five examines the importance of using
the skills more effectively in the workplace by working smarter. The study concludes with a
look at the shape of employment in the future. The employers demand for skills and the
importance of a sector approach to skills across the UK is evident throughout this research
report.

Most forms of qualifications and training leading to the

enhancement of skills produce benefits to individuals and to the firm. Studies suggest that a
more highly skilled workforce is associated with higher productivity and other positive
organisational outcomes. The skills demanded also vary by occupation. Many key results
emerged in this study. Lack of communication skills amongst applicants was observed as
very critical in important administrative and secretarial occupations and also sales and
customer service vacancies. It was also significant for managers, personal service and
elementary occupations. Customer handling skills were found particularly difficult to obtain
from applicants for the same set of occupations. Team working skill was less of a problem

28 | P a g e
 20

amongst professional and associate professionals, but sought more in connection with
managers, operatives in personal service, sales, customer service and elementary occupations.

Problem solving was mentioned mainly in relation to managers,

senior officials, administrative and secretarial occupations. Management skills were
mentioned mainly in relation to managers and senior officials (Tamkin et al., 2004).

A skill gaps occurs when an employer regards a member of their

staff as not being fully proficient in their job. The demands placed on employees are a
function of organisation’s objectives and therefore skill gaps often occur when organisations
attempt to better their performance. Green et al. (2003) found that higher levels of product
specification are associated with higher workforce skills level and higher levels of skills
requirement. One third of establishments with skill gaps were being prevented from moving
up market by their current workforce skills. Sales and customer service occupations and
elementary occupations experience skill gaps over and above their share of employment. It is
useful to consider the occupational spread of skill gaps. The study found that communication
and customer handling skills were particularly lacking in sales, customer service and personal
service occupations, though were widespread across all occupational groups. Team working
was a common skill lacking in all occupations, but was most frequently cited with respect to
personal service occupations. Management skills tended to be mentioned with respect to
management occupations, although professionals and associate professionals were also
frequently cited as lacking these skills (Tamkin et al., 2004).

A well-educated and well-trained labour force is important for the

social and economic well being of nations and individuals. Education and training provides
individuals with the knowledge, skills and competencies to participate effectively in social
and economic development. This widens our focus from the relationship between skills
possession and productivity. It’s concern is with the efficient and effective use of the
workforce; quality work, not more work; working smarter not harder, to produce services and
products that have a higher value and contribute to a increase in productivity per man hour
(Tamkin et al., 2004).

This is explained by the higher level of skills within these high

performing manufacturing companies which leads to innovation and more sophisticated
production processes, in turn leading to higher quality and higher value products (Haskel and
Hawkes, 2003). High performing companies therefore hire workers with higher skills, both
soft generic skills as well as hard technical skills.

Similar effects are reported in the service sector. Mason and

Wilson (2003) found that an additional year of skill based education among the workforce of
firms in the manufacturing and service industries in the UK increased each firm’s
productivity. A clear connection between higher skills and higher productivity was identified,
particularly at the intermediate level of skills.

A long-term study of sector trends in productivity and skills

(O’Mahoney et al 2002) revealed that productivity growth was greatest in those industries
where the proportion of workers with higher-level skills was highest as well as a positive
correlation between intermediate skill levels and productivity growth in particular.

29 | P a g e
 21

Those industries where the proportion of skilled workers was rising were those that
experienced the fastest productivity growth.

A study (Mason and Wagner, 2002) comparing the automotive

sector in different countries reported that while the UK had made gains in reducing inventory
cost and reject rates compared to other countries since this sector focus on people with higher
skill sets. From their matched firm studies they suggest that most of the productivity gap
between the UK and its competitors can be attributed to differences in investment in physical
capital and skills. It is estimated that as much as one fifth of the productivity gap with
Germany is the result of the UK‟s relatively poorly qualified workforce.

Griffith (1999) has shown that foreign owned car plants in the UK
have a substantial productivity advantage over UK owned plants because of both superior
capital and skills inputs. Griffith and Simpson (2000) show that this applies more generally
across a range of manufacturing and service sectors.

Higher skill levels are not just associated with higher productivity.
Greater skill levels can also bring improvements in other areas of a firm’s operation. For
instance Reid (2000) noted that a relatively highly skilled workforce was connected with a
more commercial orientation, strategic awareness and a propensity to innovate to retain
competitive advantage among new and small businesses, all factors that can enhance a firm’s
chances of survival. Similarly, higher education levels are more likely to foster innovation
(Albaladejo and Romijn, 2001).

Cosh et al (2003) found that half of business organisations feel

that the training they provide increased their profit margins. Recent data from the Skills for
Business Survey of employers (IFF, 2004) shows that greater benefit to employers who had
higher skill levels among the workforce. This response was given by three fifths of
employers. The second most common benefit of training, given by a quarter of respondents,
was observes that it improved labour productivity and employees‟ ability to work smarter‟.

Spilsbury (2002) found that two-thirds of employers (65%) in

England that provided training for their employees over the previous 12 months attributed an
increase in productivity to that training. 47 percent of employers in the private sector
considered that training led to an increase in profit. Productivity remains the area of
performance that benefits most from all four types of training activity according to
employers. He suggested that generic soft skills off-the-job training produced greater returns
to productivity than firm specific training.

Green et al. (2003), find that higher value products are associated
with higher skill levels and skill needs. Up-skilling the workforce can positively affect
productivity, increase workforce performance through high quality leadership and
management, develop people’s skills and improve work organisation and business processes.
It can increase the range of options available to employers in developing their business
strategies and creating more high performing organisations.

30 | P a g e
 22

The ranges of activities that are concerned with working smarter

are often collectively referred to as high performance working practices (HPWPs). There is
no definitive list of practices that constitute high performance working and in some cases
there is disagreement about what constitutes HPWPs. This apparent ambiguity is one of the
attractions and strengths of high performance working. This is its flexibility to incorporate
different practices to meet the varying needs of individual organisations (EEF/CIPD, 2003).

The high performance workplace encourages the development of

workers‟ skills and taps into their emotional capital and tacit knowledge in order to enhance
organisational performance. In addition to developing technical skills and multi-skilling, the
need for ongoing problem solving, communication and team working requires the continuous
exercise of discretion and day-to-day learning by employees. This environment of self-
confidence, flexibility and continuous learning is at the heart of the performance impact of
the high performance working approach (EEF/CIPD, 2003).

Becker et al‟. (2001) inferred that, high performing firms made

more use of knowledge management and business performance systems. Employees were
viewed as being value adders or value creators in organisational processes.

Purcell et al.‟s (2003) have conducted research on people-

performance link in organisations. It starts with the premise that human capital advantage is
created by employing better people in organisations with better processes. It is the intangible
assets such as culture, skill and competence, motivation and social interaction between
people, teams and business units that are increasingly viewed as the source of strength in
firms that are able to combine people and processes together. Purcell et al. (2003) propose
that:
“Performance is a function of Ability/skill + Motivation + Opportunity”

For people to perform at high levels they must not only have the
ability to do so but posses the necessary skills, experience and knowledge. They must also be
motivated, finically and intrinsically, to work and work well. Moreover, in order to perform,
employees must be given the opportunity to do so. High performance companies therefore
enhance customer experiences, understand their preferences and align the organisation’s
capabilities with customer needs. To make this happen employees must be equipped with
skills in general and soft skills in particular (Bloom et al., 2004).

The Working Futures report (Wilson et al., 2004)64

commissioned by the SSDA provide this insight for the years 2002-2012. It is attempted to
understand what the workforce and labour market of tomorrow may look like. Insight into
tomorrow’s employment patterns enables consideration of the nature and volume of skills
that will be needed. Skills for business are about people and organisations doing things better,
by understanding and acting on sector specific skill and business performance needs
throughout the economy. It has shown that skills can make a difference to the performance of
individuals and firms and in turn increase the returns to these groups. However, there are a
number of shortages in the supply of available skills and important gaps in the current stock
of workforce skills.

31 | P a g e
 23

It has therefore become important to look at how we up-skill the

economy and use the skills that we have more efficiently to work smarter and more
productively. So as to enhance productivity, organisations should ensure that the right skills
are available in the right place at the right time.

The SSDA has developed four strategic priorities for 2005-2008

(SSDA, 2004a), to increase „smarter working‟ by business and the public services; to
improve workforce competence and the supply of skills needed by employers; to develop the
skills for business to support the introduction of sector skills agreements by all Sector Skill
Councils.

This research (Robert J. Bowles) investigates the effect of student

motivation of integrating technical and soft skills on a workforce development program.
Informal observations of students in courses that explicitly feature skill integration seem to
indicate increased student motivation. The study is among the technology students of
Middlesex Community College, Massachusetts. The purpose of the study aimed to prepare
students to succeed in the workplace. The researcher found that, in response to industry’s
demand students entering the workplace must have a mastery of technical and soft skills.

According to Hoffman (2003) survey among Information

Technology (IT) professionals, including management, technical staff, and consultants, these
skills desired by the industry include „communication skills, people skills, business skills,
real-world hands-on experience, troubleshooting, project management, analytical skills, and
integration.‟ A mastery of technical and soft skills is the trademark of a successful computer-
electronics technician. According to this study, among the respondents of IT professionals, 75
percent are of the opinion that colleges and universities are not adequately preparing students
for the IT jobs of the coming years. However, employers were not complaining about the
level of technical skills possessed by entry-level job applicants.

This means integrating the practice of technical skills in authentic

workplace tasks with the practice of other non-technical workplace skills, such as oral
communication, following instructions, decision making, and writing. According to industry
surveys compiled by Cotton, the CET industry Advisory Board echoes unanimously that
employers value employability skills or soft skills more highly than occupational (i.e.,
technical) skills (Cotton 2001) .

It is generally recognized by industry that the repertoire of skills

that successful employees bring to the workplace has two components: technical skills and
employability, or soft skills. In the past, employers trained their employees in the practice of
these essential „soft skills.‟ Now, employers believe that employees are responsible for
acquiring them. This is one factor that has influenced industry to depend on public education
institutions, among others, to train employees and prospective employees in the practice of
soft skills. (Hissey, 2002).

Soft skills are those that are crucial to a worker’s ability to work
smarter. Study revealed that business and industry representatives have expressed
considerable dissatisfaction with the general level of preparedness of prospective entry-level

32 | P a g e
 24

employees. It was found that more than half of young people leave school without the
knowledge or foundation required to find and hold a good job. (Alpern, 1997).

A survey among employers has revealed a list of specific soft skills

that they believe as essential for employees. The skills most frequently mentioned are
„knowing how to learn; competence in reading, writing, and computation; effective listening
and oral communication skills; adaptability through creative thinking and problem solving;
personal management with strong self-esteem and initiative; interpersonal skills; the ability to
work in teams or groups; leadership effectiveness; and technology skills”(Clagett 1997).

According to Wentling (1987), employers have no quarrel with the

skills performance of today’s graduates, but they do have serious reservations when it comes
to their non-technical abilities. Mastery of non-technical skills by new employees is a serious
concern because this deficiency detracts from their performance at work and their ability to
hold a job.

Beach (1982) indicates that 87% of persons losing their jobs or

failing to be promoted were found to have improper work habits and attitudes‟ rather than
insufficient job skills or knowledge”. It also revealed industry’s need to hire and keep
employees who are competent in technical skills and soft skills and passes the responsibility
of soft-skill training to the colleges. The special focus needs to be given to reinforcing the
value of being able to refine their soft skills.

There have been studies about the criticality of skill sets

among the project managers. Richard N Bolles (2002) puts skills into three categories: skills
with data, people, and things. Within these three categories, he arranges the skills into a
hierarchy, focus on the top-most skills when using the hierarchy; if someone can claim skills
at a certain level, he or she has all the skills below it as well (Bolles 2002).

33 | P a g e
 25

TABLE NO: 1

EMPLOYABILITY ATTRIBUTES VALUED BY EMPLOYERS

Basic skill Higher order thinking Affective skills and traits

skill

Oral Problem Dependability/responsibility

Communication solving Positive attitude towards work
(Speaking & Learning skills Conscientiousness, punctuality
listening) and strategies & efficiency
Reading Creative & Interpersonal skills, cooperation
Understanding & innovative & working as a team member
following thinking Self confidence & positive self-
instructions Decision image
Basic arithmetic making Adaptability& flexibility
Writing Enthusiasm & motivation
Self discipline & self
management
Appropriate dress & grooming
Honesty & integrity
Ability to work without
supervision

Source: Richard N Bolles

The only thing more important than data to the project manager is people. People skills
should be at the highest level for any project manager. The job description typically focuses
on the supervising level of skills; most of us count the number of people we manage when
describing our jobs. „Supervising‟ is not the highest-level skill and instructing, negotiating,
and mentoring are more difficult skills to master. The ideal project manager enjoys the
negotiation problems that most people hate. Many successful project managers relish the
opportunity to try to get better contract terms from a vendor and being a negotiator is an
essential job requirement. It may be possible for a project manager to avoid mentoring. Some
matrix organisations have department managers responsible for career development and
advice, leaving the project manager in charge of only project issues. To build a solid project
team, though, the project manager should be able to act as mentor to the team members.
Effective team building also requires the project manager to diffuse difficult personnel
conflicts and to identify skills development needs within the team. These activities require
negotiating and mentoring skills.

34 | P a g e
 26

TABLE NO: 2

SKILLS WITH PEOPLE AND THEIR LEVEL OF IMPORTANCE

SKILLS WITH PEOPLE

High Mentoring
Negotiating
Instructing
Supervising
Persuading
Speaking
Serving & Helping
Low

(Source: Mulcahy)

According to (Mulcahy, 2000), the most critical skill of all for a

project manager is communication; project managers spend 90% of their time
communicating, and it appears as a low-level people skill as speaking. All the high-level
skills depend upon the ones below them. We need to note the fact that persuading,
supervising, negotiating, and mentoring all depend upon strong communication skills. A
strong project manager will have experience in communicating in a variety of ways,
including speaking, writing, one-on one, in large groups, formally and informally. Listening
skills are also implicit in the higher-level people skills. Success requires not just expressing
ideas, but listening and reading ideas, then reflecting them back to many audiences.
Communication does not appear directly in the hierarchy, but it is implicit in all the people
skills.

A study by Alex S. Brown (2002) among the project managers

revealed the criticality of people skills that would apply to project management and would
help to excel in their success. Hospitality has been a fertile ground for research with
numerous different applications of SERVQUAL (service quality). There have been similar
studies in the hospitality industry about the role of skill sets responsible for the high
performance of the industry. Policy-makers and academicians have always maintained a keen
interest in reviewing and debating the link between skills, knowledge and organisational
performance at national, sector and firm level. The identification of the main services
characteristics, the study of service encounters and service experience suggest that service
quality is more complex to evaluate than in the case of goods. Services are more difficult to
measure and standardise and consequently establishing an instrument attempting to measure
quality has become a central challenge for the delivery of good service quality and success of
service companies. The challenge of evaluating service quality has been motivated by recent
research and debate, which increasingly demonstrates the significance of service quality as a
central factor of business success. Service quality has consequently become a focus of

35 | P a g e
 27

marketing strategy of any management and high quality of service is seen as a means for
organisations to achieve a competitive advantage and position themselves more effectively in
the market place. Competitive trends have increased customer expectations and customers are
becoming more aware and critical of the alternatives on offer thus rising standards of
services.

The key aim of Nickson, D. et al (2003) is to determine the

influence of companies‟ product market strategies on -skill levels, work organisation, job
design and people management systems. More specifically the study had a number of
secondary objectives such as:

To develop active definitions of service quality and its specification and also to
review operators‟ conceptions of different dimensions to quality.
To review the different elements of the product and service that makes a given
offering “high specification‟ or “low specification‟ in relation to issues such as
physical capital, equipment, decor, ambience and the role of people.
To assess the contribution of employees to the dimensions of quality; modes of
involvement and type of staff involved; skills involved by type (technical, aesthetic,
social, emotional) and level.
To analyse the relationship of skills-fit to broader system of work organisation and
job design and the relationship of high/low specification operations to forms of work
organisation using a variety of models.
To assess the extent to which people management systems support or hinder the
delivery of quality.

The data sources utilised for this Study include; interviews with
owners/managers, employees of local large international hotel chain. Also interviews were
conducted with significant others‟ such as representatives from local enterprise networks, the
employer’s organisation for the hospitality industry, the British Hospitality Association
(BHA), and a consultant working with the Excellence through People (ETP) initiative. This
study is primarily focused on developments within hospitality and tourism, the nature of work
and skills in hospitality, De-skilling within the hospitality workplace, the technical/generic
skills debate within hospitality and the Skills and the education/training process in hospitality
sector.

Nickson, D et al (2003) Supported the proposition that the

importance of service quality dimensions would differ according to the service
characteristics. Consideration of the sector offers some potential answers as to why there may
be reliance upon cost based competitive strategies, with low specification goods and the poor
human resource management practices and lack of skills within the hospitality workforce.
This study suggests that aesthetic criteria also feature increasingly prominent in the
recruitment of front line staff for hospitality work. Employers, as has been demonstrated,
place value on generic skills such as the willingness to learn and the ability to be flexible and
adaptive. At the same time, initiative is also a valued skill and found to be lacking in the
industry.
Generally services are intangible or at least much less tangible
than physical goods or Products. This lack of possession means that services generally cannot
be owned in the same way that manufactured goods can, they can only be experienced,

36 | P a g e
 28

created or participated in, with the result that customers may find it difficult to evaluate the
services rendered here comes the importance of tangible skills associated with the service
(Edgett and Parkinson, 1993).

Keep and Mayhew (1999: 7) recognise that, the UK‟s distinctive

capabilities are not raw materials, land or cheap labour. They must be the components such as
knowledge, skills and creativity which helps create high productivity business processes and
high value added goods and services. As organisations aim to compete on the basis of high
quality and productivity, the notion of “best practice‟ is also dependent on employers
adopting a high cost, high skill employment strategy. Keep and Mayhew list the
characteristics of hospitality work and tends to confirm weak internal labour market
attribution and tendency to low wages, except where skills shortages act to counter this. Keep
and Mayhew conclude that there are major skill gaps amongst the existing hospitality SME
workforce including those of an entrepreneurial and management nature.

Campbell and Verbeke (1994: 96) suggest that often the lack of a
tangible product makes it difficult for service organisations to differentiate themselves since
customers do not always understand what information is being conveyed by different
competitors. In response to such problems they suggest that service companies may seek to
tangibilise’ the intangible via such things as standardising the exterior and interior of
buildings to create an image, which customers will immediately recognise, a strategy pursued
with considerable success by companies such as McDonald’s.

In the words of Lashley and Taylor (1998), intangible dominant

increasingly seek to differentiate themselves on the basis of the software aspects such as
seeking high quality and authentic service interactions for the increasingly discerning
customer.

The key feature of inseparability is the high level of face-to-face

or voice-to-voice interaction between buyer (the customer) and seller (the employee)
resultant from the simultaneous production and consumption within the service process. This
process has been variously described in hyperbolic terms as the so-called „moment of truth‟
(Carlzon, 1987) as enacted by what Tom Peters has called „service stars‟ (Armistead, 1994)
or more prosaically as the „service encounter‟ (Czeipel et al., 1985). Carlzon’s suggests that
the organisation, via its front line staff, has to get it right first time‟ in order to ensure a
flawless performance which will result in the customer returning to any given service
business.

This is particularly so on the issue of quality assurance where

the consumer finds it difficult to isolate service quality from the quality of the service
provider organisations. There may have significant problems in attempting to manage and
control interaction between their front line employees and customers. (Enderwick, 1992).

The quality and essence of a service can vary from producer to

producer, from customer to customer, and from day to day. As a result of this possible
variance in employee-customer interactions, service organisations may face difficulties in
ensuring uniform quality of service between outlets, especially in branded services.

37 | P a g e
 29

This involves organisations recognising and acting upon the idea of staff being crucial to
organisational success and, as a result, supporting things like soft HRM, staff empowerment,
internal marketing, and total quality management (TQM) and empowerment (Edgett and
Parkinson, 1993).

Korczynski (2002) terms the new service management school

recognising that the source of competitive advantage for many service firms is likely to stem
from a perceived difference in the quality of the service offered to the customer. Satisfied and
committed employees offer high quality services to equally satisfied customers and
differentiation comes from organisations not only meeting, but exceeding customer
expectations. To-date, there has been implicit consideration of the issue of quality in services
marketing and management. Studies to assess these to consider the issue of whether it is,
indeed, the hardware (facilities) or software (human factor) which is the most important
element of the customer experience.

Lehtinen and Lehtinen (1982) offer an important distinction in

their identification of process quality, which is judged by consumers during a service, from
output quality, evaluated after a service has been performed. These authors also distinguished
between the physical qualities, relating to the physical supports of the service, corporate
quality, which involves the company’s image and profile, and finally interactive quality,
which refers to the interactions between a consumer, the service organisation and other
customers.
Gronroos (1984) proposed a model in which he distinguished two
types of quality; technical quality that means what the consumer receives as a result of his
interactions with a service firm and functional quality which involves the manner in which
the service is delivered.
A SERVQUAL scale has been developed by Parasuraman,
Zeithaml and Berry (1988). SERVQUAL emanated from the American school of thought and
aimed to develop a quality scale that would be applicable across different services. The
authors first identified a range of ten dimensions in 1985 which reflect the notions of
hardware and software identified earlier. The five dimensions were named and described as:

Tangibles - The appearance of physical facilities, equipment, personnel and

communication materials.
Reliability -The ability to perform the promised service dependably and accurately.
Responsiveness - The willingness to help consumers and provide prompt service.
Assurance - The knowledge and courtesy of employees and their ability to convey
trust and confidence.
Empathy - The caring, individualised attention provided to the customers.

Original authors‟ goal was to produce a generic scale which would translate consumers‟
quality judgement in any service setting: The instrument has been designed to be applicable
across a broad spectrum of services. As such, it provides a basic skeleton through its
expectations and perceptions format encompassing statements for each of the five
dimensions. The skeleton, when necessary, can be adapted or supplemented to fit the
characteristics or specific research needs of a particular organisation (Parasuraman et al.,
1988).

38 | P a g e
 30

Saleh and Ryan (1991) applied the scale to hotels. The authors
followed the SERVQUAL methodology but produced their own numbers of items and
identified five dimensions. The five dimensions did not confirm the SERVQUAL dimensions
since they related to conviviality, tangibles, reassurance, avoid sarcasm and empathy.

Another study on hotels by Getty and Thompson (1994) followed

step by step SERVQUAL methodology and created a new scale, named LODGSERV, which
displayed only three dimensions: tangibility, reliability and contact.

Another application of SERVQUAL to hotel and motel services

conducted by Knutson et al. (1991) defined as elements, which would cause dissatisfaction
by their absence but would not influence customers “satisfaction by their presence since
customers assume that they would be present.

Mei et al. (1999) surveyed 155 three to five-star hotels in Australia

using a modified version of the SERVQUAL scale. Their research aimed to test the reliability
of the SERVQUAL model by establishing the number of dimensions of service quality in the
hospitality industry in an attempt to determine which dimension is the best predictor of
overall service quality. The amended version of SERVQUAL developed by Mei et al. added
eight items, which were considered to specifically pertain to the hospitality industry and
deleted three items. This customised version of SERVQUAL was renamed HOLSERV.
Based on their findings Mei et al. suggest that there are three dimensions of service quality in
hospitality such as employees, tangibles and reliability and argue that „the employee
dimension emerged as the best predictor of overall service quality.‟ This primarily
demonstrates the importance of people skills in determining the service quality.

39 | P a g e
 31

TABLENO: 3

DIMENSIONS OF SERVICE QUALITY IN THE HOSPITALITY INDUSTRY

Factors Elements from Main emphasis

SERQUAL
Responsiveness Prompt service, willingness
Employees Assurance to help, confident in the
(Factor:1) Empathy delivery of service, polite,
Tangibles knowledgeable, skilful,
caring, understanding,
sincere, neat and professional
employees

Tangibles Tangibles Modern looking equipment,

(Factor:2) fixtures & fittings, appealing
facilities & materials,
comfort, cleanliness, user
friendly equipment &
facilities, variety in food and
beverages, operation of
services at a convenient time

Reliability Reliability Keeping promises, accurate

(Factor:3) Responsiveness & timely service and safe &
Assurance secure stay

The SERVQUAL scale was built from the study of four

commercial services, namely repair and maintenance, retail banking, credit-card and
securities brokerage. These services involve situations in which consumers buy a service for
rational and functional purposes. The service delivery usually encompasses a short service
encounter principally monitored by an employee and the delivery takes place in a limited
environment. It is highly questionable that this context might be relevant to all other services
and particularly to the provision of tourism and hospitality services. Indeed, most tourism and
hospitality services may potentially involve complex processes, multiple encounters and a
longer involvement with the service firm.

Rosen and Karwan (1994) compared the relative importance of

the SERVQUAL dimensions across services displaying different degrees of interaction and
customisation. The study examined the relative importance of the five SERVQUAL
dimensions in four new service contexts: teaching, restaurants, health care and bookstores.
Services appeared to display different importance ratings for the dimensions according to
their characteristics: in high interaction-high customisation services (such as restaurants)
„knowing the customer‟ was rated as the most important dimension whereas in low
interaction-low customisation services (such as budget hotel chains), reliability and tangibles
were the first two dimensions.

40 | P a g e
 32

TABLE NO: 4

OBSTACLES TO IMPROVED SMALL FIRM BUSINESS PERFORMANCE

Managerial
Lack of ambition, vision and inclination to increase production.
Constrained resources to solve gaps in managerial competence.
Perception that business growth would negatively impact on
product/service quality.
Anti-business „hobbyist‟ approach.
Quality of lifestyle protectionism.

Skill
Multi-skilling in every category of staff needed.
Limited resources available to narrow skill gaps

Size
Weak power position within the industry sector and markets as
an individual unit. Limited capacity to solve skill problems.
Physical constraints curtail expansion.
High dependency on externalities.

(Source: Sherwood et al)

This section has pointed to a number of things, which may be

inimical to management and skills development in the specific context of the SME sector.
Whilst recognising the credence of the low skills descriptor often applied to the hospitality
industry, will also seek to explore the question of whether such a description is universally
accurate.

Research into wider areas of hospitality work, particularly those

that have emerged with the expansion of services and functions in the area (front desk,
leisure, entertainment, reservations and call centres) is much more poorly served and this
study draws on a limited range of work in these areas. The newer areas include functions and
tasks that exhibit considerable crossover with work that falls outside normal definitions of
hospitality in food and drink manufacture, office administration, and IT systems management
skills. Most of the skills that are employed within the sector also have relevance and
application in other sectors of the service economy. Those employed in areas where there is
considerable skills overlap with hospitality, such as the areas listed above, may well see
themselves in terms of their generic skills area rather than as part of the hospitality labour
market. Some of these skills have been subject to separate assessment in a manner that has
value and crossover implications for the hospitality sector. There is major labour market and
skills implications of such change as businesses re-shape the range of services they offer or

41 | P a g e
 33

respond to fashion and trend imperatives in the consumer marketplace (Warhurst and
Nickson, 2001).

Burns (1997) draws upon the often used dramaturgical analogy

for the service workplace to argue that „working in service environment requires more than
an ability to operate a cash register; emotional demands are made of employees to constantly
be in a positive, joyful and even playful mood. An ability to cope with such demands must be
recognised as a skill par excellence. Burns emphasises on “emotional demands‟ as an
additional dimension of hospitality skills. Notion of “emotional labour‟ makes the point that
work in traditional areas of service work areas demands considerable emotional elements in
addition to any overt technical skills.

Poon (1993: 262) notes that new employees in hospitality must

be trained to be loyal, flexible, tolerant, amiable and responsible. At every successful tourism
establishment, it is these employees that stand out as better performers.

Baum (1996) questions the validity of claims that hospitality is a

work area of low skills. He argues that Social and inter-personal skills also demand
considerably more by way of prior learning, whether this pertains to language skills or wider
cultural communications. It is also arguable that these sectors have grown in response to new
consumer demand as opposed to displacement of demand for traditional services.

Parsons and Marshall (1995) summarise the arguments of a

number of studies about changes in skills across various sectors. Their analysis of research
from the mid-1980s shows that the traditional skills and functional boundaries breaking down
in many occupations, leading not to functional fragmentation, but to multi-skilling in more
integrated tasks.

Relatively little de-skilling disproportionately concentrated on

lower skill and craft level jobs where barriers to cross-trade re-skilling had reduced the
potential for integration. Much inter-occupational hybridisation of skills at all occupational
levels and in manufacturing and service sectors combined with both up-skilling and de-
skilling. Demand for higher-level occupations stimulated by the effect of structural trends and
labour supply on employers‟ interpretation of skill needs. This analysis has relevance in the
context of changing skills in hospitality. The argument that hospitality is moving towards
increasingly multi-skilled models of training and work has been aired since the early 1980s.
The programme discussed in this study has evolved to include “higher order‟ skills in front
office, representing a degree of skills progression. Creating the opportunity to develop a
wider range of skills within the workplace is frequently included within models of job
enrichment. (Baum, 1987).

Skills shortages in hospitality are increasingly seen in terms of

generic rather than specific technical competencies. Studies of employer expectations of
graduates note demand for communication skills, people management and problem solving
abilities as the priority in both the US and Europe. Christou (1997, 2000) and Tesco (1999)
inferred similar observations and triggered that it is an issue that demands a debate across the
service sector, as well as within the wider economy.

42 | P a g e
 34

(QCA, 2000) with their development of core or key skills, the

identified key skills are: communications, working with others, improving own learning and
performance, application of number and Information Technology.

HTF (2000c) continue to report employer demands for improved

generic skills as a priority. These skills include communication skills, showing initiative,
delivering customer service and demonstrating a willingness to learn. Recommendations to
tackle the generic skills gap have been observed as following.

Building generic skills development into full-time education programmes.

Funding for training providers to deliver key skills and develop appropriate aptitudes
and attitudes within young people.
Ensuring providers are developed to be able to deliver key skills.
Recruitment practices need to encompass generic skills requirements.

Odgers and Baum (2001)107 provides empirical evidence from a study of front office work
and skills requirements across a number of European countries, and observe that this generic
skill focus operates in practice. Hotels in all quality categories in seven European countries
recruit on the basis of generic employability rather than specific skills and experience. They
note that even five star hotels accept the reality of the marketplace and are willing to recruit
staff without front-office experience provided they have good general education and a
willingness to learn. The same report also notes that; a key evolving change in front-office
work is the integration of technical and interpersonal skills in all aspects of work. This is the
result of a growing emphasis on the latter while technology has developed as a support for the
delivery of service rather than as an objective in it. In a technical sense, technology will
continue to reduce the skills demands of front-office work as systems become more user-
friendly and share their basic operating features with widely used office and domestic
computer software. They conclude that many hotels will increasingly look to generic, non-
technical competencies, such as communication, problem solving, customer service and IT
skills, in recruiting new personnel and build in extended on-the-job-training within the
induction phase.

............................................................................................................................
* ESS (Employers Skill Survey) is a workforce level survey, which was first undertaken in
1999 and has been undertaken annually since 2001. It originally had a sample of 27,000
English firms, which was reduced to 4,000 English firms in 2002. The 2001 ESS sample
covered all sectors of the economy for plants with one or more employees. The survey covers
a range of subjects including product market characteristics, product strategy & skills,
recruitment problems, skills & proficiency and training.
** NES (New Earnings Survey) is a one percent sample of all employees who are members
of the British PAYE (Pay As You Earn) tax scheme, carried out in April of each year. Thus
researchers make no claim in this paper to have a representative sample of manufacturing:
rather due to data constraints they have larger firms in the NES and smaller firms with the
ESS.

43 | P a g e
 35

Chapter-3
INDUSTRY PROFILE

3.1. History of HAL

Hindustan Aeronautics Limited (HAL) came into existence on1st October 1964. The
Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India
Limited and Aircraft Manufacturing Depot, Kanpur.

The Company traces its roots to the pioneering efforts of an industrialist with extraordinary
vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at
Bangalore in association with the erstwhile princely State of Mysore in December 1940. The
Government of India became a shareholder in March 1941 and took over the Management in
1942.

Today, HAL has 20 Production Division and 10 Research & Design Centres and one facility
management division. The Company has an impressive product track record - 15 types of
Aircraft/Helicopters manufactured with in-house R & D and 19. HAL has manufactured over
3658 Aircraft/Helicopters, 4178Enginesand Upgraded 272 Aircraft and overhauled over
9643Aircraft and 29775 Engines.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guard and Border
Security Force. Transport Aircraft and Helicopters have also been supplied to Airlines as well
as State Governments of India. The Company has also achieved a foothold in export in more
than 30 countries, having demonstrated its quality and price competitiveness. Hal has hold
first position among South-East Asian countries as the company that design, manufactures,
overhauls and maintain the aircraft as one organization.

HAL was conferred NAVRATNA status by the Government of India on 22nd June 2007.

The Company scaled new heights in the Financial Year 2015-16 with Turnover of Rs.16,
736crs.

44 | P a g e
 36

HAL has been successful in numerous R & D programs developed for both Defences and
Civil Aviation sectors. HAL has made substantial progress in its current projects:

 Advanced Light Helicopter – Weapon System Integration (ALH-WSI)

 Tejas - Light Combat Aircraft (LCA)
 Light Utility Helicopter (LUH)
 High Combat Helicopter (HCH)
 Intermediate Jet Trainer (IJT)
 Light Combat Aircraft (LCA)
 Fifth generation fighter Aircraft (FGFA)
 Multi-role Transport Aircraft (MTA)
 Medium Multi-role Combat Aircraft (MMRCA)
 Multi-role Helicopter
 Various military and civil upgrades.

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in
March 2002, in the very first year of its production, a unique achievement.

Hal assembly lines are currently producing SU-30 MKF, Hawk, Light Combat Aircraft,
Intermediate Jet Trainer, ALH, DO-228, Chetta, Chectak, JIT .

3.2.1. VISION:
Vision of HAL is “To become a significant global player in the aerospace industry.”

3.2.2.MISSION:
" To achieve self reliance in design, development, manufacture, upgrade and maintenance of
aerospace equipment diversifying into related areas and managing the business in a climate of
growing professional competence to achieve world class performance standards for global
competitiveness and growth in exports. ".

45 | P a g e
 37

3.2.3. VALUES
 Customer satisfaction

 Commitment to total quality

 Cost and time consciousness

 Innovation and creativity

 Trust and team spirit

 Respect for the individual

 Integrity

TABLE: 5

3.3. DIVISIONS OF HAL ACROSS THE COUNTRY

BANGALORE COMPLEX

Aircraft Division Aerospace Division

LCA Tejas Division Airport service centre

Engine Division Airport service centre

IMGT Division Central material and Process

Laboratory

Overhaul Division Facility Management Division

MIG COMPLEX

Aircraft Manufacturing Division, Engine Division , Koraput

Nasik
Aircraft Overhaul Division, Nasik Sukhoi Engine Division, Koraput

46 | P a g e
 38

DESIGN COMPLEX

Aircraft R&D Centre Gas Turbine R&D Centre,

Koraput

Rotary wing R&D Centre Aerospace System and Eqpt. R&D

Centre , Lucknow

Mission& combat system R&D Strategic Electronic R&D Centre ,

Centre Hydrabad

Aero Engine R&D Centre Transport Aircraft R&D Centre ,

Kanpur

Aircraft upgrade R&D Centre , Aerospace System and Equipment

R&D Centre , Korwa
Nasik

HELICOPTER COMPLEX

Helicopter Division Barrackpore Division

Helicopter MRO Division Aerospace composite Division

ACCESSORIES COMPLEX

Transport Aircraft Division, Kanpur Avionic Division, Hydrabad

Accessories Division , Lucknow Avionic Division , korwa

47 | P a g e
 39

3.4. VARIOUS RANGE OF PRODUCTS:

The various types of product manufactured are follows:

1. Communication / Navigation Equipment

2. Advanced communication Equipment
3. Accessories of Aircrafts, Helicopters and Aero engines
4. Aerospace Equipment
5. Aero engine of Russian Origin
6. Aero engine of Western Origin

HAL has played a significant role for India's space programs by participating in the
manufacture of structures for Satellite Launch Vehicles like

 PSLV (Polar Satellite Launch Vehicle)

 GSLV (Geo-synchronous Satellite Launch Vehicle)
 IRS (Indian Remote Satellite)
 INSAT (Indian National Satellite)
Apart from these, other major diversification projects are manufacture & overhaul of
Industrial Marine Gas Turbine and manufacture of Composites.

3.5. SUPPLIERS
Jayems Engineering Company – Mumbai
Professional Traders – Panchakula
Bombay Tools Supplying Agency – Mumbai
Aero Spares Equipment – Vishakhapatnam
Atul Enterprises – Kolkata
M.B.Corporation – Vishakhapatnam
Bhatia Tools & Technology – Bangalore
Mahr Gabh Esslinger – Germany
Hi-tec Instrumentation Pvt. Ltd. – Mumbai
Romada Engineering Works – Mumbai
Karthik Industries – Chennai
Aryan Aerospace Tools – Nasik
J.S.Precisions – Bangalore
Belavadi Tool Room – Bangalore
Kalyani Engineering Works – Ghaziabad
S.N.Tools – Balasore

48 | P a g e
 40

3.6. CUSTOMERS
DOMESTIC
DEFENCE & SPACE:
Indian Air Force
Indian Army
Indian Navy
Indian Coast Guard
Indian Space Research Organisation
Defence Research & Development Organisation
Ordnance Factory Board
CIVIL:
Border Security Force
Geological Survey of India
Oil & Natural Gas Corporation of India
Govt. of Karnataka
Govt. of Jharkhand
Govt. of Maharashtra
Bharat Heavy Electricals Ltd.
EXPORTS:
Airbus Industrie, France
Boeing, USA
Coast Guard, Mauritius
Ecuadorian Air Force
ELTA, Israel
GE Aviation, USA
Hamilton Sundstrand, USA
Honeywell International, USA
Israel Aircraft Industries
Mauritius Police Force, Mauritius
Moog Inc. USA
Namibian Air Force, Namibia
Nepal Army, Nepal
RAC MIG, Russia
Rolls Royce Plc, UK
Royal Air Force, Oman
Royal Malaysian Air Force, Malaysia
Royal Thai Air Force, Thailand
Ruag, Germany
Rosoboron export, Russia

49 | P a g e
 41

Suriname Air Force

Turbomeca, France
Vietnam Air Force, Vietnam

3.7. JOINT VENTURES (JVS):

BAeHAL Software Limited

Indo-Russian Aviation Limited (IRAL)

Snecma-HAL Aerospace Pvt Ltd

SAMTEL-HAL Display System Limited

HALBIT Avionics Pvt Ltd

HAL-Edgewood Technologies Pvt Ltd

INFOTECH-HAL Ltd

TATA-HAL Technologies Ltd

HATSOFF Helicopter Training Pvt Ltd

International Aerospace Manufacturing Pvt Ltd

Multi Role Transport Aircraft Ltd

Several Co-production and Joint Ventures with international participation are under
consideration.

HAL has won several International & National Awards for achievements in R&D,
Technology, Managerial Performance, Exports, Energy Conservation, Quality and fulfilment
of Social Responsibilities.

3.8. ACHIEVEMENTS AND AWARDS

HAL was awarded the MOU Excellence Award for the year 2004-05, 2005-06, 2007-
08 and 2008-09.
HAL was awarded Performance Excellence Award-2009 (Organisation) for the year
2008-2009 by Institution of industrial Engineering.

50 | P a g e
 42
Foundry & Forge Division, Bangalore was awarded International Diamond Star
Quality Award during 23rd World Quality Commitment Convention 2009 held at Paris
on 25th September 2009.
HAL was awarded the Regional Export Award for Export Performance for the year
2007-08 by EPC India. The award was presented on 21st February 2010 in Maldives.
Foundry & Forge Division was awarded “Gargi Huttenes Albertus Green Foundry
Award” of the year 2008-09 by the institute of India Foundry men. The Award was
presented in the 58th Indian Foundry Congress held at Ahmedabad in between 5-7
February 2010.
HAL was awarded the “Supplier of the year 2008” by Boeing USA.
HAL was awarded the ‘INTERNATIONAL GOLD MEDAL AWARD’ for Corporate
Achievement in Quality and Efficiency at the International Summit (Global Rating
Leaders 2003), London, UK by M/S. Global Rating, UK in conjunction with the
international information and marketing centre (IIMC)
HAL was presented the International ‘ARCH OF EUROPE’ Award in Gold Category
in recognition for its commitment to Quality, Leadership, Technology and Innovation.
At the National level HAL won the ‘GOLD TROPHY’ for excellence in Public Sector
Management, instituted by the Standing Conference of Public Enterprises.

SOME OF THE PRESTIGIOUS AWARD RECEIVED:

Conferred NAVARATNA status by the Government of India on 22nd June, 2007.

Raksha Mantri’s Awards for Excellence for the year 2007-08 and 2008-09.
HAL was conferred with the Raksha Mantri’s Awards for Excellence as follows:

2006-07
i). Division/Factory Award: Transport Aircraft Division, Kanpur
ii). Group/Individual Awards: Design Effort Award for TARDC, Kanpur
2007-08
i). Institutional Award: Excellence in Performance
2008-09

51 | P a g e
i). Institutional Award: Best Performance in Exports.
43

Some of the prestigious Awards received during 2009-10 &2010-11 are:

2009-10

“MOU Excellence Award” for the top performing CPSEs for the year 2006-07(Top Ten
Public Sector Enterprises). HAL has been receiving awards consecutively since 2001-
02.

Raksha Mantri’s Award for Excellence for the year 2007-08 under the “Institutional”
category.

“Regional Export Award” from EEPC, India for the year 2007-08.This award was
presented on 21st Feb 2010 in Maldives.

“The Supplier of the year 2009” by Boeing, USA.

Foundry & Forge Division, Bangalore conferred with International Diamond Star
Award for Quality in the realm of customer satisfaction, leadership, innovation and
technology as established in QC100 TQM Model.

Foundry & Forge Division, Bangalore conferred with “Gargi Huttenes Albertus Green
Foundry Award” of the year 2008-09 by Institute of Indian Foundrymen.

2010-11

“MOU Excellence Award” for the top performing CPSEs for the year 2008-09.

Raksha Mantri's Award for Excellence for the years 2008-09, for Export under the
“Institutional” category.

International Aerospace Awards (instituted by SAP Media Worldwide Ltd) as mark of

recognition to the Indian Industry for excellence in innovation, indigenous technology
and entrepreneurship under the following categories:-

Outstanding contribution to the Defence Industry.

Most Influential Company of the year
Excellence in Indigenous Technology
Excellence in Exports

52 | P a g e
 44
Foundry & Forge Division, Bangalore conferred with “Casting of the Year 2010”
award to Main Gear Box (MGB) casting of ALH from the Institute of Indian
Foundrymen.

Aerospace Division, Bangalore: Runner-Up in “Viswakarma Rashtriya Puraskar and

National Safety Award – 2008 “instituted by Ministry of Labour, Government of
India.

Aerospace Division, Bangalore was awarded Gold Medal by the Society of Aerospace
Manufacturing Engineers (SAME) for the year 2010 for outstanding contribution in
the field of Aerospace Manufacturing.

Engine Division, Bangalore won Rajiv Gandhi National Quality Awards 2009,
instituted by Bureau of Indian Standards, New Delhi for Commendation for Large
Scale Manufacturing Industry-Engineering & Others.

Shri G.C Bhagwanani, Chief Supervisor, HAL- TAD, Kanpur, was awarded the Prime
Minister’s “Shram Shree” Award for 2006 on 15th Sept 2010.

Shri A.Selvaraj, AGM (Mfg), Foundry & Forge Division, Bangalore was awarded the
“Foundryman of the year 2010” by the Institute of Indian Foundry men.

Shri Mohan Lal, Chief Supervisor of Accessories Division, Luck-now was selected
for Prime Minister’s “Shram Vir” for the year 2009.

2012-13

Rakhsha Mantri’s award for excellence in performance under Institutional Award category

2013-15

Uttama Suraksha Purashkara Certificate and Trophy in the year of 2015

3.9. ORGANIZATION PROFILE HAL, Engine Division Koraput

53 | P a g e
Engine Division - Koraput, a unit of HAL's vast network, was set up in April 1964 to
manufacture R11-f2 turbo jet engine of MiG-21 FL aircraft under licence from the erstwhile
USSR. Subsequently, the division took up, under various licence agreements, manufacture of

45

R-11 series engines of MIG-21 FL and MiG-21M aircraft, R-25 series engines of MiG-21
BIS aircraft and R-29B engines for Mig-27M aircraft. Simultaneously, facilities were set up
for overhaul of R-11 and R-25 series engines, which started in 1971 and 1983 respectively.
Starting from 1997 - 98 we have also undertaken overhaul of RD - 33 Engines of MiG-29
aircraft.

The Division has stepped into diversification by signing on MOU with GTRE for supply of
components belonging to three modules (gear box, fan and turbine modules) of KAVERI
engine meant for LCA.

The Division has also entered the export market by overhauling R25 engines for Vietnam,
supply of helicopter gears for MH1, Japan and supply of spares for Egypt. The Division has
bagged an order from M/s allied Signals, USA for machining of castings. The Division has a
long term plan to undertake manufacture of AL-31FP engines for SU-30MKl aircraft under
licence.

Today we have behind us a rich and enviable experience of manufacturing more than 1000
aero-engines and overhaul of nearly 4500 power plants.

The Division has the unique distinction of manufacturing almost all types of components
required for manufacture and overhaul of engines and spares for service exploitation. The
Division is equipped with modern Forge and Foundry shops which cater to the requirements
of prevision forgings and castings.

Raw materials used

The raw materials are borrowed from Russian Country and some of the raw materials are
collected within India.

Technology used
HAL has borrowed its technology MiG from USSR. It has been manufactured and
collaborated with Russian Government.

54 | P a g e
 46

Location of the organization

The company Hindustan Aeronautics Limited (HAL) Koraput division is located in a

difficult position and this company is situated at Sunabeda in Koraput District of Odisha,
which is about 140 kms from Vizianagram and 39 kms South from Jeypore. The river
Kerandi which acts as a perennial source of supply in water is following in north-eastern side
to HAL Sunabeda. Moreover this factory is in adjacent to the NH-43 linking Visakhapatnam
to Raipur.

The nearest link in Vizianagram station (130kms form sunabeda) which under the south-
eastern railway and the nearest city is Visakhapatnam, which is approximately 210 kms from
Sunabeda.

Location advantage

Water supply is available around the year. Excellent power facility is provided by Odisha
state electricity board which is a separate grid for HAL. The communication is available near
at NAC Bus stand the atmosphere is very cold and total pollution free.

Area covered by HAL Koraput division

The factory covers 200 acres of land but the area occupied by the organization is about 2500
acres.

Registration number of HAL Koraput division

KT/62 SI.00169 from D.I. Factories and Boiler, Government of Odisha.

Products in Current Manufacturing Range

The Engine Division at Koraput, a unit of HAL's vast network, has the unique distinction
of being one amongst the few Aero Engine manufacturers in the world.
The spectrum of manufacturing facilities extends literally from the production of nuts and
bolts to discs, shafts, blades, forgings and castings - all that are required to make an Aero
Engine right from the Raw materials.

55 | P a g e
 This spectrum is further enlarged to include overhaul of Aero Engines for the MiG family
and supply of spares required during service.

47

AL-31 FP ENGINE

AL-31FP is a high temperature turbojet by-pass engine of modular design. A specific

feature of AL-31FP is an axi-symmetric vectoring nozzle with a thrust vector angle of
±15° in the vertical plane providing super manoeuvrability of the aircraft. The vectoring
nozzle control is integrated with the engine control system. AL-31FP engines ensure
stable operation in all
available evolutions of the
aircraft in super
manoeuvrability
modes. AL-31FP
engines power advanced
multi- purpose Su-30
MKI fighters of
the 4+ generation.

56 | P a g e
 48

R25ENGINE

This is a Twin Spool, Axial Flow, Turbojet Engine fitted with after burner and a
variable area Jet nozzle. It powers the MiG-21 BiS multi-role Fighter Aircraft. The
Engine has provision for an emergency After-burner thrust boost, which can be selected
below 4.5 KM altitude.

R-29Bengine

This Engine is a Twin spool, axial flow

Turbojet Engine incorporating After-burner
system and variable area Jet nozzle of
convergent-divergent type. The Engine is
equipped with automatic Fuel regulation
system, Turbo-starter, Anti-surge system,
Temperature controller, Constant speed drive
for AC Generator and Two speed drive for
Hydraulic Pump. R-29B Engine powers
MiG-27 M, a Multi-role Ground attack / Air combat Aircraft.

Precision Components

The Division also produces precision components like: total gamut of ranging from
Compressor Rotors and Stators to Turbine Blades and Nozzle Guide Vanes, intricate Cored

57 | P a g e
Magnesium Alloy Gear Casings, Compressor and Turbine Discs and Shafts, JIS class-l/DlN 5
Spur, Helical Gears and DIN 6 straight and Hypoid / Spiral Bevel Gears ranging from module
1 to 6.

Repairs, Major Servicing, Supply of Spares

Since the early 1970's, the Division has been overhauling Aero Engines to make fighter
Aircraft flight-worthy again for the Indian Air Force.
The Division follows the 'Flow Line Group Technology' with the Engine parts being
dismantled, viewed and loaded to different work centres.

Regular follow-up through PC ensures timely completion of sub-assemblies.

49

The stripped components are subject to detail micrometric and Non Destructive Testing
(NDT) checks. Repair and refurbishing of worn-out parts and sub-assemblies are
undertaken by skilled workmen.
Repairs and Refurbishing Processes include welding, hard alloy coatings, vibro-tumbling,
micro-shot preening, ultrasonic strain hardening, nickel alloy powder coating and a large
number of protective coatings. Assemblies and sub-assemblies undergo rigorous
functional tests on various Hydraulic, Fuel and Electrical Rigs.
Quality control checks are carried out using various NDT methods, like X-ray, Magna-
flux, Dye-penetrate check and ultrasonic inspection besides other conventional
techniques. Overhaul of accessories is carried out in environmentally controlled rooms.
All the accessories after overhaul are subjected to stringent tests on test rigs.
Every manufactured / overhauled Engine undergoes rigorous tests on Engine test beds
that simulate all flight conditions.
The preliminary and final acceptance test, hot test, endurance test and gas dynamic
stability tests are conducted through computerised controls.
Electronically assisted throttle, digital and analog read-outs help get real-time
simultaneous data and engine parameters during R-29B and RD-33 Engine testing.

Today we have behind us a rich and enviable experience of manufacturing more than 1000
aero-engines and overhaul of nearly 4500 power plants.

58 | P a g e
 50

CHAPTER-4
Functional profile

4.1. FUNCTIONAL PROFILE OF ORGANISATION HR

Human Recourse Department is a very essential part of the organisation. The main function
of the HRD is Recruitments, Selection, training, Retention of employees, performance
appraisal, Promotion, Retirement of man power in the organisation.

Apart from that HR department also maintains industrial relation, interpersonal relationship,
Redressal of grievances of the employees for settlement of dispute, disciplinary aspect, MIS,
CSR, township management, facility management etc.

Humans are that recourses of every organisation through which all other resources are
dependent. So for an organisation it is vitally required effective and efficient management of
human recourses.

HR department plays significant role in smooth functioning of the organisation by

maintaining the relationship between organisation, employees and societal needs.

4.2. FUNCTIONAL SECTION IN HAL:

1. Establishment section
2. ERP & Statistics Section
3. ERM & IR Policy Section
4. ERM Legal & Disciplinary Section

59 | P a g e
 5. HR-OL Section
6. HR-TM/PM Section

1. ESTABLISHMENT SECTION:

A). Wage & Salary Administration

(i) Wage & remuneration paid by the employer for the service of hourly, daily, weekly,
monthly and fortnightly employees.

(ii) Employees are provided with 3% annual increment the month of January.

51

(iii) The criteria for promotion for officer promotion is made in January and July. For the
EMPLOYEES promotion is made in January only.

(iv) Allotment of employees PB NO., roster maintenance and consultant engagement.

(v) The workers after 6 months receives confirmation latter and his increment of 3% will be
received after 1 year. But for an officer, after 1 year confirmation increment is more 3%.

(vi) Its sponsor P.G Course in various College sponsored by HAL which is a bond is signed
for five years.

(vii) It also provides Scholarship from I to XII employee children and it is paid categorical
basis i.e. General SC, ST & Money paid to children approved by GM.

(viii) It also provides Service Certificate issue, Loan Subsidy and Group Saving Linked
Insurance (GSLI).

2. ERP AND STATISTICS SECTION:

(A). ERP (Enterprise Resource Planning System): It comprises of a commercial software

package that promises the seamless integration of all the information following through the
company financial, accounting, human resource, supply chain and customer information.

(B).The HR officer of the statistics section deals with the following functions:

60 | P a g e
 To maintain the personal static reports & returns regarding manpower for submission
to corporate office.
It records the report monthly, quarterly, annually on demand provided through
corporate office.
To provide Certificate to the eligible employee on their completion of 10/15/25 year
of service.
To maintain Human Resource Information System (HRIS)
To manage all the allowances like School fees reimbursement, Hostel fee
reimbursement, School allowance, uniform allowance, washing allowance, merit
scholarship, handicapped allowance; post retirement assistance, HR initiatives etc.
52

3. ERM& IR POLICY SECTION:

Review of Human Resource policies being communicated from corporate office.

Forwarding back of improvements/suggestions in various HR policies.
Seeking clarification in policy matters.
Releasing internal circulars.
Maintenance of personnel circular and POL files.
From entry to exit all activities under policy and procedures are recorded.

ERM-IR (INDUSTRIAL RELATION):

To maintain harmony and peace in the industry

To deals good communication with the trade union for employee benefits and also
worker’s participation in management (WPM) for decision making.
To provide welfare facility as per the factories act 1948.
To coordinate the VIP visits & maintain relationship among outer agency, Govt.
agency and Labour authority. It also provides annual gifts to the employees.
As per the government guideline most important function is corporate social
responsibility (CSR) the organization has to spend 2% of profit for CSR.

FOLLOWING DAYS ARE CELEBRATED:

61 | P a g e
 1. Independence Day
2. Republic Day
3. Sadbhavana Divas
4. Public Sector Day
5. HAL Foundation Day

OTHER ACTIVITIES

(A). Puja’s & Celebrations

(B). Cultural Programs
(C). Co-ordination of VIP Visits
(D). CSR activities
(E). Adopted village activities
(F). SAI – HAL Sports Academy
53

(G). AFT – Aeronautical Football Tournament

(H). Contract Labour

4. ERM-LEGAL AND DISCIPLINARY SECTION:

Looking into the legal cases.

Coordination of files.
Coordination of bank guarantees.
Defending cases for contract labours/ suppliers/ contractors etc.
Scrutinizing & coordinating contact documents.
Preparing legal documents like core agreements, indemnity.
Conducting eviction calls before the court of estate officer under the public premises
Act.
Preparing brief statement for facilitating divisions advocate in the various cases.
Right to information Act. Assist public information officer.
Handling disciplinary action like: initial investigation, giving charge sheet to
employee, performing suspension, dismissal, discharge, demotion, withholding of
increments, suspension fine, warning & censure.
Excusing the person involves in minor crimes like: bribes, incentive, co-workers etc.
Taking necessary action for the major cases like: theft, wilful damage to the property
order competent authority & finance statement.

62 | P a g e
5. HR-OL (OFFICIAL LANGUAGE)
It acts as facility management such as:

Translation from English to Hindi and vice-versa.

Hindi language typing, training stenography, computer etc.
All types of printed materials namely name book, sign board etc.
Constitutional provision contains Section- 343 to 351 related to the language
policy of Govt. of India.
Hindi training is given to the employees who do not know how to read & write
Hindi.
54

The employees appear examinations like: - Prabodh, Proveen and Pragya.

Those who are passed the examination are given incentive in one increment for 12
months i.e. 4% of basic pay.
Each year the employees are celebrated Hindi Pakhwada Day for 15 days.
Based on these three constitutional provision rules are their regarding official
language:
(i) Official language Act. 1963. (ii) Official language resolution 1968 (iii)
Official language rules 1976.

6. HR-TM/PM (TALENT MANAGEMENT AND PERFORMANCE

MANAGEMENT)

1. Recruitment section
2. HRD cell

1. RECRUITMENT SECTION

The Govt. guidelines are being followed in the organization for recruitment.
The source used for recruitment is advertisement made through local news paper,
employment exchange, online/website etc.
The officer and manager are recruited on the basis of grades such as: Grade. I,
Grade. II, Grade. III onwards is being recruited by the corporate office.

63 | P a g e
 Others are recruited by two ways i.e. (a). Direct meant for technical candidates such
as MSD, IT, Manufacturing etc. (b) Indirect is specifically for those candidates who
have qualified Diploma Engineering. These recruited through the open test selection
(like:- Written examination)
There is no operation of consultancy in this organization, as it is a Public Sector
Undertaking (PCU).
Outsourcing is helpful for minimization of cost, concentrating on job of maintaining
good quality. Recruitment is given to outside agencies that look after receiving the
application, scrutinizing and sending call letter to the prospective candidates.

55

And also looks the recruitment, selection, promotion, apprentice, trainee appoint,
DT/TT Regularization etc.

2. HRD CELL:

HRD Intervention:

HRD intervention is the techniques or tools which are used by management for bring changes
in the division or company. The various types of interventions involved in HAL, Engine
Division, Koraput are:

Knowledge Management:

It is the process to capture critical skill which is getting deteriorated or depleted. Example:
Video clipping, oral interaction.

Mentoring:
The newcomer is appointed by an experienced or highly knowledge and skill to
him son that he can perform the same taught to him. Guide or mentors are
identified by the HR Manager, who had an experience of nearly 20 years.
Knowledge Sharing:
Sharing and gaining knowledge is a very important element of HR Intervention. It
is purely internal. It can be identified through Johari window.

64 | P a g e
 Employee Introduction:
HR Managers are appointed to introduce the new comer to the existing employee
so that he will not feel any kind of inferiority or uncomforted in working with
them.
Counselling:
Counselling is done by counsellors. Habitual drunker or habitual absentees, non-
performers will be counselled or called or discussed about their problem. Social
counselling was also observed.

56

Finding training needs:

From performance appraisal, training needs of the individual is found out and his
boss also finds out the required needs.
Interaction with newly joining executives:
Interaction with newly joined executives is done to ask problems and to settle
problems. Interacting session is made with every 3 months.
360* Performance appraisals:
It is in transition position in HAL. It was in search of who will be
subordinates/peers/colleges or who will be the customers/clients. Once it was
decided then it will be implemented fully.
Birthday card :
On every employees birthday they get an opportunity to visit the factory with their
family members and greeted with a birthday card. There photo along with the
identification is displayed through electronic media in the important places.
Superannuation programme :
It is conducted for every employee on their retirement day. A one day training
program is conducted in which they are given tips about managing their daily life,
managing finance; yoga classes etc. apart from that a folder is given to them about
their achievements in the organisation, information about provident funds, health
insurance etc by GM.

65 | P a g e
ROUTINE ACTIVITIES:

Probation and Confirmation:

It is the training period of the employee for 1 year. After 1 year the management
should have to see the performance of the employee and declare service period.
Inter-divisional transfer:
If the employee cannot adjust themselves with the climate of the organization or
children wants higher education which is not available or for any other reason, they
request for transfer from one division to another division.

57
Inter-departmental transfer:
It refers to transfer from one department to another department. By this an employee
can gain some new skills or knowledge which helps him for getting promotion
(because he gains experience).
Performance Appraisal of executives and non-executives:
The HR Manager appraises the performance of the executives and non-executives.
Basing on the PAR the employees are given by the respective departmental heads.
Annual property returns:
The details of property like movable and immovable, share market, mutual fund
should be provided to the HR department by the employees.
Feedback after foreign visit:
When a new employee is sent to a foreign country then the feedback is given to him
from the one who had already visited it before.
Quarterly task:
The HR Manager collects information quarterly regarding the performance appraisal
of the employees.
Confirmation of executives and non-executives:
In this process after appraising the executives gets confirmation after one year and
non-executives after 6 months.
Succession planning:
Succession planning is identifying to be placed in the key position areas in advance.
Key Position Areas require skill without which organization may suffer to perform its
normal process.

66 | P a g e
HR- FM (FACILITIES MANAGEMENT)
TOWNSHIP AND GUEST HOUSE;
The HAL Township Administration Department comprises of the following contents:-
(a) Quarter allotment section:
(b) Market allotment section:
(c) Russian Enclave, Transit Accommodation and crèche:
(d) Guest House and BOH (Bachelor officers Hostel):
(e) Miscellaneous section
58

The functions are of these sections, in a nutshell are follows:-

A) Quarter Allotment section:

Quarter allotment to Employees – A part from allotment of Quarters this includes request for
direct change of Quarter/ mutual change of Quarters allotment of higher type of Quarters to
employee attaining entitlement for the same .other routine functions include preparation of
statistical returns for submission to corporate office and various correspondence connected
with allotment ,maintenance or relevant etc.

Quarter allotment to private parties –This includes allotment of Quarter to Non-Employees

like; contract, school teachers, Government organization etc. Allotment of Quarters to
employees on temporary and chargeable basis for performance of school/ religious functions
is also done by this section.

Handling/ taking over the quarter: The Quarters that are handed over by the employees on
their superannuation/resignation/termination and by the dependants of inspection of the
inventory of the respective Quarter.

B) Shops allotment:

It is the process of allotting shops to the suitable businessmen after conducting interviews and
Renewal/ cancellation/ transfer of the shop license.

Here Preparation and presentation of cases before the state officers for eviction of
unauthorized occupants from Quarter and shops.

C) Russian Enclave, Transit Accommodation and Crèche:

67 | P a g e
The Russian enclaves are of 24 type-III and 20 type-IV Quarters. The Enclave also has a
multipurpose cell, a library and a children park. Procuring, issuing and replenishment of
items like: line, crockery, cutlery, furniture etc. to Russian specialist, guest house and
Bachelor Officers’ Hostel, Toys, Toffees, etc. to crèche. So they have up-keep of the rooms
in Guest House/Bachelor Officers’ Hostel and arranging V.I.P visits and official parties.

59

D) Guest House and Hostel for Bachelor Officers:

Matters of Guest House include Accommodating HAL officers, Central & State Government,
Officials and executives from HAL and Private Organizations on HAL jobs, organizing
official parties in honour of VIPs and proper upkeep and maintenance of kitchen, room, hall,
toilets, veranda and the guest house premises. They used to Allotment of room for
Bachelor/Management Trainees of the Division.

E) Miscellaneous Section:

Matters of the Bachelor Hostels, Bus stand and various other public utility building, under the
preview of the section. The public utility building in the township are School & college
building, sports club building, Bhanja Mandap, Utkal cinema hall, Kalyan Mandap building,
etc.

68 | P a g e
 60

CHAPATER-5
CONCEPTUAL PROFILE

5.1. SKILL DEVELOPMENT POLICY FOR PERSONNEL IN THE NON-

EXECUTIVE CADRE

1. With the advancement of technologies and processes in the aircraft aerospace

manufacturing and assembly technique, there is a need for up-skilling & re-skilling the
employees in new technologies and processes to make them competent to perform the job
roles to the required standards their improving and performance of the company. This
cause for lifelong learning and continuous skill development measures to meet the skill
requirement of the company. It also involves skilling of the employees in differs job roles
to make them perform multi-skilling jobs.

2. In this regard ,a skill development policy as formulated with the intent of bringing
various skill development measures through the company on a single platform for
standardization of the process of skill development aligned with job role standards
,curriculum, quality assumes and effective measurement system, curriculum ,quality
assurance and effective measurement system . The objectives of the policies also to align
the skill development systems and practices to the vision and mission of the company and
enable significant enhancement of the competitiveness of the organisation.

3. Skill development is a continuous process and initiatives aims at

A- Enhancing the individual’s skill, knowledge and understanding to ensure ability to adopt
to changing technologies and market demands.

69 | P a g e
B- Introducing practices for improving productivity and quality for the growth of the
company.

4. The policy will also aid in identification of skill gaps with job role standards as reference
points and promote multi-skilling multi-tasking. The skill development initiative will also
help in addressing the gaps through carefully designed training curriculum and training
module delivered by was equipped training centre.

5. Division offices are requested to draw up actions plans for skill development as per the
policy and take steps for its implementation, including review at regular intervals.

61

5.1.1. OBJECTIVES:
1. To develop a large base of quality conscious skilled workforce relevant to the current
and emerging needs of the company.
2. To establish a flexible delivery mechanism for skill development that responds to the
characteristics of wide range of skills needed by the company and
3. To promote consistent commitment of all divisions of HAL and their executives to own
and actively support skill development initiatives and system.

5.1.2. SCOPE:
The policy is applicable to all direct and indirect workmen to all technical and non-technical
disciplinary departments of the company.

5.1.3. GUIDELINES:
1. The categorizations of skill, similar skills grouped to skill clusters (sc) and mapping of
trades against skill clusters for both technical and non-technical disciplines.

2. The skill development management systems (SDMS) is the framework for

implementation of the skill development policy which will cover the process of skill
development, job roles and functional standards, skill mapping, skill development
quality assurance system and the skill development portal ”Kausal Vikash” .

3. A centralised syllabus and curriculum for all job roles will be assured from skill
development unit, corporate office (in consultation with the respective experts from the
divisions outside), which will be basis for certifying workmen for each types of job role
and skill cluster. This centralised syllabus and curriculum will cover the following
aspects.
70 | P a g e
 a) Familiarization and orientation including awareness about the product and its safety
requirements, company and its environment , behavioural aspects ,communications
,computer, safety, lean, quality etc .
b) The cortical input, demonstration and practical training for the trade.
c) Shop floor familiarization and basic training before commencement of on job training.
d) On job training based on standard of preparation (sop) with independent assessment.
e) Specialized skill training certification.
f) Project work and Independent module wise evaluation and final evaluation.

64

4. The systems and procedure for skill development will be managed by head of skill
development unit to be established in every division.

5. Division will establish necessary infrastructure for training such as workshops,

laboratories and trainings aids and ensure availability of modern methods of training,
such as computer based training and stimulators in a phased manner. The same may be
complicated within two years of issue of this policy.

6. A centralized system will be established for survey, auditing and improving the
infrastructure, training and certification process including syllabus, curriculum and
courseware for skill development. The team for survey will be nominated by skill
development unit, corporate office and implementation will be done by TTI heads and
HR heads of the respective divisions.

7. Wherever necessary, cares can be in local language to enhance the effectiveness of

training.

8. All workmen trainings will be included into the respective division and will be absorbed
on the recommendation of the TTIs, after completing the requirements for the
certifications. The trainees will be under of TTI till the successful completion of their
training.

9. Every training module will be reviewed at least once in 3 years by a cross-divisional

team setup by skill-development unit, corporate office, to ensure continuous updating,
feedback on training modules; faculty and facilities will be the obtained by TTI from the
trainees at the end of each module of training.

10. The ratio of input hours for training on soft skills and trade skill training would be in the
ratio 1:4 for ITI technicians and 3:7 for diploma holders.

71 | P a g e
 11. For technical direct and indirect employees ,each cause skill include topics line
understanding safety standards, drawing reading process hangout, producing , finished
parts in single setting, inspection & testing , lean,5-s , TPM, cellular manufacturing
hangout , single minute exchange of dies (SMED) etc. For non-technical employees,
each lower shall include topics on best practices prevailing in similar industries and IT
related systems.

12. Keeping in view the requirement in a particular discipline, highly skilled, and motivated
workmen of divisions may be utilized as ‘mentor’ for imparting practical training to
employees.

65

13. The skill training modules for technical and non-technical discipline like ‘Nipun’ and
‘Praveen’ for new inductees.

14. A process approach based skill development management system (SDMS). The same is
to be adopted as a framework for skill training processes to fulfil the objectives of the
policy.

15. Head of TTI was functionally reported to head of skill development unit of corporate
office for implementing the skill development policy and report the progress to
governing council of HMA.

16. A document titled skill development quality assurance system(SDMS) a part of SDMS,
will be developed as a guiding documents for quality assurance of training process by
skill development unit, with quality assurance the skill development policy will be
based on the following four day process :

a) Validation of training process for ensuring that proper infrastructure, proper tools,
technique, methodology and materials as suggested in cultural standards are used for
continuous improvement (CI) which will be achieved through Deming wheel-
PDCA(Plan, Do, Check and Act) .

b) Validation of qualification for ensuring that the qualification reflect the workplace
requirements and expressed in the form of competencies with clear assessment criteria
with an auditing process;
c) Assessment of learners for ensuring that the assessment is based on standards and use
of valid, objectives and reliable assessment methods.

d) Where the skill training is outsource accreditation of training provider and training
institutions for ensuring that training is delivered by complete &b qualified trainees in
well-resourced and managed institutions.

72 | P a g e
5.1.4. GOVERNANCE OF SKILL DEVELOPMENT INITIATIVES:
1. The governing council of HMA is renamed as governing council hearing and
development with the additional members. An eminent external members as expert in
skill development will be included in the governing council. Governing council will
have responsibility for all the aspects of managing the companies learning and skill
development structure, system, process for both officers and employees. Governing
council will be responsible for reviewing and uploading the skill development
management system for ensuring is adequacy for meeting the skill requirements of the
division & the company.
66

2. A central skill development portal will be created by corporate IT development

networking all the TTIS divisions, office and corporate offices skill training data bank
will be created, updated and maintained by division through the portal .The
management of skill training will be done by TTIS through portal.

3. Heads of TTI should be at the level of Gr-VI/VII depending on the size of TTI the
number of apprentices’ and employees handled by them .Heads of TTIS will be the
members of the repeat over divisional committees of management .

4. Skill development unit, corporate office in coordination with TTI heads and divisional
HR heads will issue the skill development management system (SDMS) document
with required templates for skill Gap mapping assessment &measurement of
effectiveness of training after review by the Governance councils.

5. The (HR) will be the competent authority for approval and subsequent review and
reissue of the SDMS document and changes in the organization structure, it necessary.

6. Appropriate training will be imported to the personal involved in the implementation

of skill development management system for effective implementation.

7. A committee will be formed by will development unit, corporate office for

scrutinizing/reviewing the adequacy of the syllabus and curriculum. Skill
development unit, corporate office will review the audit report on the effectiveness of
this policy and recommend necessary changes to the governing council, as necessary.

5.1.5. ROLES AND RESPONSIBILITY:

The broad roles and responsibilities at corporate level, divisional level (head/HR/Head of
division), TTI.

73 | P a g e
RESPOND TO THE FUTURE:

Skill development unit, corporate office will promote excellence through focusing on
developing high quality faculty, high quality programmes in current and emerging technology
areas. All heads of TTIs and Heads of HR will work together to ensure that skill development
initiatives will strives to identity the future requirements and constantly respond to changes
in the external environmental, learn from them and experiment with new approaches and
structures .

67

5.1.6. OUTCOMES OF THE SKILL DEVELOPMENT POLICY:

The following outcomes are envisaged through implementation of the skill development
policy:

1. Demand driven system guided by the skill requirement information and human
resources planning there by reducing the skill mismatch.

2. System to deliver competencies in-line with the recognized standards.

3. Lifelong learning focuses on pre-service (new inductees) and in –service training

(existing employees).

4. Stress on skill development planning and monitoring.

5. Promoting excellence by use of modern training technologies.

6. Skill up-gradation of trainers and their quality assurances.

7. Relearning and re-certification systems would be introduced are based on the personal
development plan of every individual, duty monitored and followed by adequate
training will ensure focus on continuous improvement and learning.

8. The skill development processes and their impact will be reviewed in the divisions
every six months through a presentation by the heads of TTIS to the committee of
members (COM).

74 | P a g e
 5.1.7. POLICY REVIEW:
The processes of skill development operate in a highly dynamic environment. Hence a
personal review once on 2 years is required to maintain their alignment with the changes in
the company’s needs.

The competent authority for review amendments to the policy will be director (HR).

68

TABLE NO: 6

INDIVIDUAL SKILLS AND PREVAILING TRADES

PSL INDIVIDUAL SKILLS PREVAILING TRADES
No.
1 General/ conventional machining Fitter/General/Machinist/Miller/Turner

2 CNC machining computerised manners Machinist/fitter/Draughtsman(Mechanical)/

Programmed Grinder
3 Non-conventional machining Grinder / machinist

4 Special machine Grinder / Machinist

5 Gear manufacturing Grinder

Advanced Machining Machinist

6
Sheet metal 1 Sheet metal matches operator Fitter/ mechanist/ sheet metal worker.

2 Sheet metal forming Fitter.

3 Advanced sheet metal forming Machinist /sheet metal worker

Welding 1 Welding Welder fitter

Pipe
2 Advance Welding Welder fitter

Fabrication 1 Conc. Pipe fabrication Welder/fitter

75 | P a g e
 2 CNC pipe bending Fitter

Process 1 Process shop / surface coating Electroplater/fitter/process mechanic

HT 1 Heat treatment Heat treat operator
Painting 1 Painting Painter
Plastic 1 Rubber and Plastic Fitter /Rubber Technician/ Laboratory
assistance/Heat treat operate
Casting and 1 Forging Machinist(grinder) tool & Welder/ Tuner /
forging operator Advanced machine tool

2 Casting Foundry map technician/foundry man/

moulder
Composites 1 Composites technician Fitter/store keepers/Tool and Die maker
process mechanic
2 Composite lab technician Lab assistant
3 Composite mechanist Machinist

Aircraft 1 Aircraft/helicopter structure Fitter

&Helicopter assembly
assembly
2 Aircraft/Helicopter equipping Fitter
3 Aircraft/Helicopter electrode Electrician

4 Aircraft/Helicopter Flight test Instrument mechanism/fitter/electrician

5 Aircraft/Helicopter/arsenics Electronic Mechanic

6 “System” Electronic Mechanic

7 Transmission Assembly Fitter

8 New engine assembly Fitter

Electronics 1 Avionics assembly Electronic/Instrument Machine
inter optics
2 Process Process Mechanic

3 Optical assembly Electronic/instrument Mechanic

4 Mechanical Assembly Mechanic Mech at ron / electrical machine

5 Electrical System Electronician /Wireman

ATC 1 Air Traffic Control Electronic/ Electrical/ Database

Administration

76 | P a g e
 Quality 1 Quality Engineering and Fitter
Quality Assurance
2 Inspection Fitter /Radiology/ Technician / Electronic
Mechanic
3 Lab Fitter / Radiology / Technician/Electrician
mechanic / Lab assistant
Design 1 Design Design Assistance DME

Production 1 Production Engineering Diploma Trainee / Mechanical Assistance

Engineering
Tooling 1 Tooling Tool and die Makers /DME/ carpenter
customer /draughtsmen

Support 1 customer support Aircraft technicians / electrician

IMM 1 Material management / Commercial Trainees /DME/PEE

outsourcing

Finance 1 Finance Accounts Trainee / b.com

IT 1 IT Diploma Trainee Computer

Hr and legal 1 HR and Legal Admin Trainee, Hindi Typist and translator

Marketing 1 Marketing Diploma Trainee Mechanical

Maintenance 1 Civil work and maintenance Mill Wright, electricians, Boiler operator,
dup trainee Mechanical and electrical.

Safety 1 Fire and Safety Fireman , safety inspector

Security 1 Security Security guard , watch and ward guard

Office 1 Office management Admin Trainee

Management
Training 1 Training Instructor – Diploma in Electrical

77 | P a g e
 71

TABLE: 7

SKILL- TRAINING MODULER: NIPUN AND PRAVEEN:

Training module will be designed separately for ITI, non technical staff and diploma level
induction. The satellite and indicate features of these modules are given below.

TECNICIAN (ITI) INDUCTION TRAINING SCHEAMS (NIPUN- T)

Training 30 weeks

Induction & orientation at TTI : 1 week

Trade/skilled &safety theory and practical training at TTI: 5 weeks

Familiarisation at Division: 1 week

Familiarization/ Basic training in shop at Division: 2 weeks

ON job training and project work at Division: 16 weeks

Specialized skill training at TTI/External inst.: 4 weeks

Final assessment at TTI: 1 week

NON- TECHNICAL STAFF INDUCTION TRAINING SCHEME (NIPUN-NT):

Training 30 weeks

Induction & orientation at TTI: 1 week

Training in respective area at TTI: 3 weeks

78 | P a g e
Familiarization at Division: 1 week

Familiarization of work in dept. at Division: 2 weeks

On job training and project work at Division: 22 weeks

Final assessment at TTI: 1 week

72

DIPLOMA INDUCTION TRAINING SCHEME (Praveen):

Training 30 weeks

Induction & orientation at TTI: 1 week

Basic aeronautical engineering and product safety,

Manufacturing production management, industrial engineering,

Policy and process uses, Demonstration and practical

Training at TTI: 6 weeks

Familiarization at division: 1 week

Familiarization /Basic training in dept/ shop at Division: 2 months

On job training & project work at Division: 15 months

Specialized skill training at TTI /

External inst: 4 months

Final assessment at TTI: 1 week

5.1.8. ROLE AND RESPONSIBILITIES:

A) CORPORATE LEVEL:

Head of the skill development unit

Actions in line with this policy.

79 | P a g e
 Organise certifications training for trainers
Setting – up Qualification Framework and quality assurance mechanism.
The performance appraisal of the TTI heads will be functionality viewed by corporate
office.
Review the plans of the TTIs and report on the performance of the entire sill development
function to the governing council.
Develop common templates for skill gap mapping, assessment and for measurement
circulate to all divisions and TTIs for us ,
Identity TIS centre of excellence for specialized grades.

73

B) DIVISIONAL LEVEL

Heads of Divisions:

To won the skill development process to identity the competencies required in the
division and for setting –up competencies standards including preparing catalogues of
types of skill and there range and depth required for the successful execution of tasks as
per plans and budgets.
To share work place experience machinery equipments when required with other
divisions.
To project budget requirements for creating and maintain infrastructures and facility
improvement for civil works/ workshop/ laboratories/training aids etc.
To design faculty and assistants to effectively support skill development.

HR Heads:

For effectively deploying the skill requirement information system and planning the skill
development based on the analysis of demand.
For drawing skill matrix of workmen carrying out the skill mapping of the employees,
carrying out the analysis to access the skill gap, training not, organization training for
workmen for bridging the skill gap, measurement of the effectiveness of training and
further corrective action .
For maintaining skill inventory and use the same for effective planning of manpower and
training / retraining.
To raise awareness about the benefit of the skill development plans and activities among
employees.

C) TECHNICAL TRAINING INSTITUTES LEVEL:

Heads of TTIS:

80 | P a g e
 Course /curriculum development.
Delivery of training, monitoring and evaluations, measurement of effectiveness of
training and feedback to corporate office.
Planning and budgeting to fulfil the requirements of the policy.
Conducting evaluation of employees & trainees through examination and
certification/recertification.
Maintaining affiliation and acceleration process as required.
Effective utilized of resources & infrastructure and outsource specialized trainings
/certifications where adequate and economic resources are availability externally.
Use skill development information system to identify employees who require regular
retraining and recertification in co-ordinating with the department of the division.
Behavioural aspects need to be addressed in the training modules.
Organise training for trainers.
74

5.2. SKILL DEVELOPEMENT QUALITY MANAGEMENT SYSTEM

5.2.1. SKILL DEVELOPMENT STRATEGY:-

1. Development and establishment of skill development framework (SDF)
2. Development and establishment of skill requirement information system (SRIS) for
present and future business plan.
3. Demand driven pull system guided by the skill requirement information and human
resource planning thereby reducing the skills mismatch.
4. System to deliver ‘competencies” in-line-with occupational standard(HALOS)
5. Continuous learning and skill improvement focussed on ab-initio (new inductees) and
training for up skilling and re-skilling existing employees.
6. Thrust on skill development planning and monitoring
7. Promoting excellence by use of modern training technologies and best practices.
8. Skill up gradation of trainers and their quality assurance.
9. Development and establishment of SDMS portal (SDMSP) interface with ERP
10. Development of functional standards for the job roles.
11. Skill mapping of employees with respect to functional standards, analysis of the skill
Gap and measures to bridge the Skill Gap through personal development plan (PDP).
12. Identification of critical technologies requiring specialized skill and the associated
Skill Gap in the company and subsequent bridging the skill gap.
13. Quality assurance of Skill Development System to meet the standards.
14. Leaving technology in skill training for scale and speed.
15. Standardization of training through centralized syllabus , curriculum and courseware
16. Investment and up-gradation of infrastructures of technical training institutes (TTIs
17. Out-sourcing generic training to external Training Institutes.
18. Organization structure of skill development unit
19. Introduction of skill certification system for technicians
20. HR policy to be aligned with skill development initiatives.

81 | P a g e
5.2.2. SKILL DEVELOPMENT PROCESS
1. DEVELPOMENTAL OF FUNCTIONAL STANDARDS (FS0 FOR THE JOB ROLES
(JR)

Functional standards are statements of the standards of performance individuals must achieve
with carrying out functions in the work place, together with specifications of the
underpinning knowledge and understanding.

Functional Standards (FS) has

a. Unit Title which reflects the content of Task.

b. Overview which gives a brief a summary of the standard.
75

c. Performance Criteria (PC) which state the outcomes of competent performance.

d. Knowledge and Understanding (K) in the Organizational context and Technical
Knowledge which are required to perform competently in the workplace, Knowledge
means the outcome of the assimilation through learning.

Knowledge is the body of facts, principle, theories and practices that are relate to a field of
work or study.

e. Skills(S) required performing competently in the workplace namely. Core skills genetic
skills and professional skills. Skills mean the ability to apply knowledge and know-how
to complete tasks and solve problems.
f. Skills are described (involving the use of logical , intuitive and creative thinking) or
practical (involving manual dexterity and the use of methods, materials, tools and
instruments)

2. INDIVIDUAL COMPETENCE/ SKILL MAPPING

Competence mapping in the process of identifying the specific skills, knowledge, abilities
and behaviour required to operate effectively in a specific trade or job position.

Competence mapping is referred to as competence profiles or skill profiles.

Competence mapping is a platform for comparing the present and desired level of
skills to the competencies of n individual required to perform a task effectively and
efficiently to the required standard .This helps in identifying individual’s skill gap and
the subsequent training needs for his up-skilling and performance appraisals of the
individual.
The process involves:--
A) Identifying of skills from the job description. Every job role its designated set of job
description. Identify the skills from the explained job description.

82 | P a g e
 Example- one of the job descriptions for a CNC operator is: He/she needs to
maintain the machine as per the preventive maintenance schedule. For they have
adopted knowledge of 5 S (A concept for maintaining cleanliness). Competency
identified: - Awareness towards safety and hazard.

B) Listing of all the skills across organization. Repeat the above-mentioned process
department wise by talking to managers, supervisors and operators. Sum up all the job
descriptions and list down every possible skill that contributes towards an effective task
performance.
Target performance deflects.
Highlight skills that require additional training or practice
Benchmark employee performance across organization norms.
Define performance standards within organization.
76

C) Farming skill categories. Fix the categories which depend on product & process.
Example- Technical Behaviour and Processes are some of the category that is common to
almost all.

D) Assign skills into categories. Assign every single skill set into its suitable category.
Example. “Machining” is a skill under Technical parameter. However, “5S” (the concept)
will go to Processes and “Behaviour safety” can be fixed at Behaviour parameter.

E) Prepare a skill directory. Every skill is explained with level wise description in Five-
levels:

TABLE NO: 8
LEVEL MEANINGS
5. Exceptional Employee performs the tasks
independently and can guide others.
4. Highly Effective Employee performs the tasks
independently.
3. Proficient Employee performs the tasks under
guidance.
2. Inconsistent Employee requires assistance and training.
1.Needs Improvements Employee lacks skills required or fails to
utilize necessary skills.

F) Under the levels. Level 1 being lowest, every single addition to its level is commensurate
with the difficulty/ perfection level to perform the task. And Level 5 is the epitome for
perfection. Assigning workmen to these levels depicts their present calibre and
knowledge level in that particular skill.

83 | P a g e
G) Mapping in comparison. One workman need to be mapped against every single skill. As it
is a tool to enhance the skill and get the appropriate training. Hence one need to be
mapped for knowing what is the desired skill level to perform the task most efficiently. It
will vary according to designation, years of work experience and education qualification.
H) Identify the gap and translate it to training: gap between actual and desired is the source
of training need identification. Comprehend the gap and fix it with appropriate training
scheduling.
I) Map the resource again. Competency mapping is a cyclic process. If, after post training
evaluation, the workman has improved in his performance, then the actual skill level is
enhanced.
J) Link the evaluation with performance appraisal schemes. It is a very useful tool for
objective appraisals.

77

3. COLLECTIVE COMPETENCE AND ORGANIZATION SKILL

REQUREMENT:-
An organizational skills gap is defined as a significant gap between an organization’s and the
current capabilities of its workforce. It’s the point at which the organization can no longer
grow or remain competitive because they don’t e right skill have the right skills to help drive
business results and support the organization’s strategies and goals.

This also addresses the competences available in the company today and the competence
needed for tomorrow through six steps:-

a. Understand the strategies, goal and performance metrics

b. Identify competencies and skills that map to strategies and performance metrics.
c. Assess the skill gap at organization prospective.
d. Set goals and prioritize the path of filling the gaps.
e. Implement solutions.
f. Monitor and measure results and communicate the impacts.

4. THREE STEP INDIVIDUAL COMPETENCE ASSESSMENT PROCESS:-

This is to know how employee is applying knowledge and skills against the job requirement

a. MAPPING BY MANAGER:
The manager’s checks the job already assigned or select a new job for each position in
his team, this step is called mapping.

b. INDIVIDUAL COMPETENCE:

84 | P a g e
1) SET REQUIREMENT BY MANAGER:
The manager updates the proficiency level (PL) for the job and each competence and
skills. He can also add other competences and skill

2) SELF ASSESSMENT BY EMPLOYEE:

The employees assess his PL against the requirements. He can add competences and skills.

3) ASSESSMENT AND INTERVIEWS:

Interview- the manager and the employee discuss the employee’s competences and
the best solution to develop them.
Assessment review by employee- the employee updates the assessment following
the interview.

78

validation by manger- the manager validates the assessment the competence gaps
(including those linked to learning events) are summarized in the profile match up

Assessments are developed as skills checklists, self –assessments, or interviews in which

employees and employers can track an individual’s performance over time. An assessment
presents organization with a means to:

1. Select the most important skills

2. Prioritize the skill gap to the addressed
3. Provide ongoing employee performance coaching
4. Acknowledge satisfactory and exemplary performance

5. SKILL GAP ANALYSIS AND TRAINING NEED ASSESSMENT

A. Align with the competencies required-map the curriculum to the specific competencies
needed by an individual.

B. Pre-filter each worker’s course scheduled to meet individual needs- instead of generic
programs for all workers align competencies, curriculum and all he needs of individual
worker considering the potential of individual employee for absorption of training.

C. Post training assessment provides concrete validation of results.

6 .PERSONAL DEVELOPMENT PLAN (PDP)

85 | P a g e
PDP is the personalized plan to develop, build on and learn specific skills as identified by a
skill assessment for an employee’s current or future job role. Create Personal Development
Plan (PDP) and the assessment checklist with the skills to build on skills to develop.

A. SKILLS TO BUILD ON:

Skills that technician already have with some working knowledge, but would like to
improve for better performance.

Prepare assessment checklists.

B. SKILLS TO DEVELOP:
New skills that technician does not have or very little working knowledge in the
assessment checklists.

Identifies specific skills to develop that are linked to specific action

79

7. DESIGN AND DEVELOPMENT OF TRAINING MODULES AND

DELIVERY
Training modules are designed specific to address the skill gaps. Curriculum focused for
addressing the skill gap, is designed with contents, structures and method of training. While
contents cover the syllabus and course contents, structures addresses the sequence of the
contents and the interlinking between subjects, chapters and sub modules. Methods cover the
ways and means to delivery of training is most effective and efficient way.

a. Organize generic skill training modules in-house in TTIs.

b. Organize critical and specialized skill training modules in external training institutes by
outsourcing.
c. Organize very specialized skill modules in division by creating TWI Cells in the
division.
d. Organize the skill training module in shop floor in division s by specialists called
mentors.
e. Develop common standards training modules and configure them based on modular
concept to design training for the skill sets.
f. Investment and up gradation of infrastructures of TTIs.
g. Creates alignment between the training needed and the training provider
h. Design the syllabus, curriculum and courseware for the identified skill gap.
i. Design the teaching technology, demonstration and practical training
j. Organize on the job training and project work based on standard of preparation (SOP)

86 | P a g e
8. TRAINING OF TRAINERS (TOT)
A. Introduction of certificate system for the trainers
B. Plan for the training of the trainers and mentors
C. Institutes to be identified for training and trainers
D. Empanelling the external trainers from industries and training institutes
E. Empanelling the certified internal trainers from divisions.

9. SKILL DEVELOPMENT QUALITY ASSURANCE SYSTEMS (SADQAS)

A. Standard and QA system documentation control.
B. Quality and certification for the technician.
C. Quality and certification system for the trainers.
D. Auditing system to ensure compliance to standards & QA
E. Plan for continual improvement.
80

10. MEASUREMENT OF EFFECTIVENESS OF SKILL DELIVERY

SYSTEM
A) Measurement of effectiveness of skill delivered in the specific jobs

1) How has the skill been demonstrated on the job?

2) Is development on target?
3) Are there any additional activities to add to the plan?
4) Are there any additional activities to add to the plan?
5) Are there any further resources required?

B) Measurement and evaluation of skill development of individuals for effectiveness

1) Measurement system of skill enhancement to be introduced base on parameters like

productivity and quality.
2) PDCA Cycle to be implemented for preventive and corrective measure
3) Review system for improving the effectiveness of the skill training
4) Are there any further resources required?

11. LEVERAGING TECHNOLOGY FOR SPEED AND SCALE OF SKILL

DEVELOPMENT
A. development of a web portal for skill development management system (SDMS)
interfacing SDSM portal to ERP

B. Connectivity of all divisions, TTIS and HMA for sharing skill inventory and information.

87 | P a g e
C .Large scale use of Computerization in training in terms of simulators, web based training,
digital class rooms. E-book and Kiosks.

D. Development of a portal for skill, knowledge and best practices.

12. REVIEW THE SKILL DEVELOPMENT MANAGEMENT SYSTEM FOR

MEETING THE REQUIREMENT CONSTANTLY AND CONSISTENTLY
A. Periodical review system and upgrading the SDSM for meeting the requirement, adequacy
and effectiveness.

B. Bench-making the best practices of global corporate in Aerospace sector in skill

management.

C. Review SDSM ensures” continual improvement”

81

13. DEVELOPING BALANCENSCORE CARD FOR SKILL

DEVELOPMENT
Develop balance score card (BSC) for monitoring the skill development strategy. The process
for developing a Balance Score Card is placed.

14. COMPANY WIDE DATA BASE OF SKILL DEVELOVEPMENT

A. Build the competency and skill training data base

B. Knowledge database online.

C. Sharing problem solving experience online

D. Documenting the key solutions to recurring problems.

E. Up-loading the skill mapping and training data to the SDSM web.

F. Up-loading the details of the training of the employees to the web.

G. Up-loading the data of the external training institutes to web.

15. HELP INDIVIDUALS DEVELOP THROUGHOUT THEIR CAREER

A. Follow up with the individual to check progress and see if they need any support at a
regular interval.

88 | P a g e
B. By mentoring and hand holding.

C. Measures enabling the employees for multi skilling and multi-tasking

D. Mid-career skill development for existing employees on multi-tasking.

E. Support system to the employees enabling them to develop knowledge and skill.

16. SYSTEM OF COMPETEENCE BASED CAREERPROGRESSION

SYSTEM
A. Develop HR policy to give progression to the employees based on their competency to
perform and conformance to the job role.

82

B. Weight-age being given on career progression based on the continuous improvement in the
skill and competence of employee in terms of multi skilling and multi tasking objective
defined in the Personal Development Plan (PDP)

C. Improvement on the parameters like productivity and quality of the deliverables.

17. COMPETENCY BASED TRAINING AND DEVELOPMENT

Competency-based

Training is an approach to learning concrete skills than abstract learning. Learners

work on one competency at a time, which is a small component of a larger learning
goal.
The employee is evaluated on the individual competency and only after mastering it
do they move on to others.
Higher or more complex competencies are learned to a degree of mastery and
isolated from other topics.
Competency-based learning is the ability to skip learning modules entirely if the
learner can demonstrate they already have mastery.

Some of the common benchmark competency-based practices in learning and development

are:

Assessments against competencies- Once the competencies have been defined for particular
job role, it becomes possible for employees and others to assess the employee’s competencies
against those required for current or future roles within the organization.

89 | P a g e
 18. HARMONISATION, THE APPROACH TO SKILL DEVELOPMENT
A. Standard and structured training inputs in all TTIs

B. Centralized syllabus, courseware and curriculum

C. Common certification and validation procedure for certifying technicians

D. Make TTIs centre of excellence for specialized skills with relevant infrastructure

83

CHART NO.1

EMPLOYEES COMPETENCE MANAGEMENT

ECM-C STRATEGIC 1. Identification of key/ critical

COLLECTIVE COMPENTENCE jobs, technical domain,
MANGEMENT competences
Competence 2. Workforce planning focused on
management key/ critical items
WORKFOR E
ECM PLANNING 1. As-is mapping
2.To-Be Distribution
3. Future Gap identification
ECM-I
4. Competence action plan
INDIVIDUAL
INDIVIDUAL
Competence COMPETENCE 1. Competence assessment
management DEVELOPMENT interview
2. Consolidation and action plan

Process Scope

90 | P a g e
 84

CHART NO.2

PROCESS OF ASSESSMENT OF SKILL GAPS

UPDATING SET SELF INTERVIEW ASESSMENT VALIDATION

JOB FOR REQUIREME ASSESSMENT
THE NTS
POSITION

MAPPING INDIVIDUAL CPMPENTENCE ASSESMENT & INTERVIEW

UPDATING SET SELF INTERVIEW ASESSMENT VALIDATION

JOB FOR REQUIREMEN ASSESSMENT
THE TS
POSITION

MANAGER MANAGER EMPLOYEE MANAGER & EMPLOYEE MANAGER

EMPLOYEE

91 | P a g e
The manager The manager The employee The manager The employee The manger
checks the updates the assesses his PL & employee updates the validates the
job already proficiently against the discuss the assessment assessment.
assigned for level for the job requirement. employee’s following the The
selects new and He adds the competences interview competence
job in his competence competencenc & the best gap are
team skill es & skill solution to summarised in
required for develop them the profile
the job match up

85

CHART NO.3

GUIDELINES OF THE POLICY

STEP-1 STEP-2 STEP-3

CATEGORIZATION OF CENTRALIZED
FUNCTIONAL
SKILL AND CONCEPT OF STANDARD
STANDARDS(FS) OR
SKILL CLUSTER FOR SYLLABUS,COURSEWARE
VARIOUS JOB ROLES
MULTI SKILLING AND CURRICULUM

SKILL DEVELOPMENT
MEASUREMENT AND CENTRALIZED AUDIT QUALITY ASSURACE
ASSESSMENT SYSTEM SYSTEM SYSTEM (SDQAS) AND
CERTIFICATION

92 | P a g e
 86

CHART NO: 4

SKILL DEVELOPEMENT MODEL

•DIGITAL BOARDS •SIMULATORS

•KISOSKS •CUT MODELS
•E-BOOKS •LIVE ASSEMBLIES
•CAD MODELS
•COMPUTERS
•FLOW CHARTS
•PA SYSTEM
•INTERNET
DEMONSTRATION
TEACHING 10%
20%

ON THE JOB 50% PRACTICAL 20%

•LIVE PROJECTS •WORK-SHOPS

•WOKING ON •LABORATORIES
AIRCRAFTS •TETTRA TRAINING
•WORKING IN SHOPS

93 | P a g e
 87

CHART NO: 5

TRAINING PROCESS

CONDUCT
TRAINING
NEEDS
ANALYSIS
1

IDENTIFY
EVALUATE LEARNNG
TRAINING OBJECTIVES
2
5

DESIGN
CODUCT OF TRAINING
TRAINING COURSE
3
4

5.2.3. SKILL DEVELOPMENT WEB PORTAL

94 | P a g e
 The web portal, ’Kaushal Vikas’ aims at up skilling employees by findings the skill gap of
employees and bridging it via providing training and mentoring programs.The employees
need to be mapped and remapped at regular intervals so as to provide a continuous
improvement system.

Once the job role standard, JR-FS (job roles-functional standards),

has been defined, each of the employees need to be mapped to one or more job roles. The
supervisors are then required to evaluate their employees by skill gap mapping the
performance criteria of each of the FS.

Each of the performance criteria needs to be prioritized so that the skill gaps can focus on
most prioritised items first. There will be three priority categories namely,

Priority 1: implies highest priority of critical nature,

Priority 2: implies moderate priority and

Priority 3: implies low priority

88

The performance criteria of employees are mapped based on the following legend:

LEVEL MEANINGS
5. Exceptional Employee performs the tasks independently
and can guide others.
4. Highly Effective Employee performs the tasks independently.
3. Proficient Employee performs the tasks under guidance.
2. Inconsistent Employee requires assistance and training.
1.Needs Improvements Employee lacks skills required or fails to
utilize necessary skills.

Once the mapping is done, the skill gap of an employee can be calculated via the portal. It
will also show the training requirements based on the skill gaps. The skill gap report shows
the highly priority items where the skills lack. This helps in focusing on highly critical skills
that are required on job over the skills which are of lower priority.

Training will then be organized and delivered. A re-mapping is to be followed after the
training so as to re-evaluate the skill gaps. The skill gap of department is also done so as to
focus on the area which lacks most in the skills. This will also help us in organizing trainings
and focus on areas of utmost priority. The web portal will assist in the following:-

entry of JR-FS
mapping of JR-FS to employees
mapping of performance criteria of employee
skill gap analysis of employee

95 | P a g e
 skill gap of department
Trainings recommended to bridge the skill gap

The employee HR data including trainings data are the inputs to the system. These are
gathered from the current IFS ERP system.

The JR-FS standard will be entered by HR heads.

Key features of web portal include:-

The web portal will be networked among all TTIs, divisions, HMA and CO.
Job roles and trainings data bank will be created, updated and maintained in to the
portal.
Supervisors will map the job roles of the employees
Employee’s skill gaps will be addressed via trainings and mentoring by supervisors.
Trainings attended will be re-mapped.
This will be a continuous development procedure until excellence is achieved.
Workmen will be allowed to view their Personal Development Program (PDP).

89

CHART NO: 6

SKILL DEVELOPEENT PORTAL (SDP)

EMPLOYEE'S SKILL DATA

KAUSHAL VIKASH DATA
MINE
TRAINING
MODULE/INSTITUTES

SKILL REQUIREMENT
INFORMATION SYSTEM

DATA ON TRAINERS
AND TRAINING

96 | P a g e
 90

CHART NO: 7

SKILL DEVELOPEMENT PORTAL OUTPT

EMPLOYEE'S SKILL
GAP

TRAINING NEED
FOR BRIDGING
SKILL GAP

KAUSHAL VIKAS SKILL LEVEL

OUTPUT MEASUREMENT

FUTURE SKILL
REQUIREMENT
AND DEVELOPMNT

DELIVERY OF
TRAINING

97 | P a g e
5.2.4. SKILL REQUIREMENT INFORMATION SYSTEM (SRIS)

1. DEFINATION:
This SRIS system identifies the skill requirement of the company project-wise, division-wise
for the current and future projects in order to plan the skill development of employees in
alignment to the business goals and strategies of the company. The information is hosted in a
website and accessible to all stake owners for use.

2. PROCESS FOR IDENTIFICATION OF FUTURE TRADE SKILL

REQUIREMENT AND ASSESSMENT OF SKILLS GAPS
The following table identifies in six steps how to identify the skills and competencies needed
now and in the future so as to find out the skill gaps in-order to align their development to the
key drivers for the organization.

91

3. IDENTIFICATION OF NEW TECHNOLOGIES IN THE NEW AND

FUTURE PROJECTS.
It is required to identify the new technologies in the new and future projects where skills need
to be developed as such skilled employees may not be available in the organization. Since
skill development takes considerable time and efforts, it is required to plan skill development
well in advance so that employable skills are available to undertake the job.

4. IDENTIFICATION SKILL REQUIREMENT FOR NEW TECHNOLOGIES

The new technologies may require multiple skills to perform a particular job. Hence it is
required to understand the nature of skills to perform a particular job. Hence it is required to
understand the nature of skills required for each technology and develop employees with
multi skill technology wise instead of developing people in each skill.

5. SKILLING EXISTING WORKMEN FOR NEW TRADE SKILL

REQUIREMENT
1. Multi-skilling: performing more than one trade in a group of similar skills called skill
set/cluster

2. Multi-tasking: simultaneous operation of more than one machine reduces the labour cost.

3. Up-skilling:

98 | P a g e
 A) Skills to build-on: Skills that technician already have some working knowledge, but would
like to improve

B) Skills to develop: New skills that technician does not have or very little working
knowledge.

6. SKILL FOR MANUFACTURINGEXCELLENCE

New skills will be required in the areas of manufacturing excellence as the new technologies
will have more computer application, flexibility, agility, redundancy and play a major role in
productivity and quality.

92

7. REQUIREMENT OF SKILLS FOR SUSTAINABLE MANUFACTURING

PROCESSES
Creation of manufacturing products that use process that minimize negative environmental
impact, conserve energy and natural resources, are safe for the employees, communities and
consumers and are economically sound.

8. ESSENTIAL SKILLSAND CROSS FUNCTIONAL SKILLS

REQUIREMENT
Skills required for new technologies, requires other than the trade skills. Essential skills and
cross functional skills as tabulated below:

TABLE NO: 9

SL NO ESSENTIAL SKILLS SL NO CROSS FUNCTIONAL

SKILLS
1 READING 1 OPERATION MONITORING
ENGINEERING
DRAWING
2 DOCUMENT USE AND 2 OPERATION CONTROL
INTERPRETATION

99 | P a g e
 3 WRITING ENGINEERING
DOCUMENT
4 JOB KNOWELDGE AND
SKILL
5 PROBLEM SOLVING
3 TROUBLE SHOOTING
4 INFORMATION
SYNTHESIZING

6 COMPUTER USE

93

TABLE NO: 10

9. SKILL REQUIRED FOR FACTORIES OF FUTURE

AREA TYPICAL CURRENT LIKELY FUTURE FEATURES LIKELY
FEATURE SKILL
REQUIREME
NT
PROCESS AND LIMITED HIGHLY
PRACTICE FLEXIBILITY OF CAPABLE,FLEXIBLE,EMBEDDED
PRODUCTION KNOWLEDGE,CLOSE CUSTOMER
LINES WITH SOME RELATIONSHIP,CROSS SECTOR R&D
POTENTIAL FOR
MULTI-PRODUCT
MANUFACTURING
SUPPLY CHAIN MIXTURE OF LOCALIZED AND INTEGRATED
GLOBAL AND ‘’PATNERING’’’EFFECTIVE USE OF
LOCAL SUPPLY GLOBAL CAPABILITIES AND
CHAIN.NOT WELL ADAPTABLE LOGISTIC SYSTEM.
INTEGRATED
WITHPARTNERS
WITH LIMITED
RISK/REVENUE
SHARING

100 | P a g e
GOALS AND MOSTLY FOCUSED SPEED,AGILE,DEGREE OF CROSS
MATRICES ON COST,QUALITY REGION/SECTOR COLLABORATION
AND DELIVERY LOCAL RESOURCE
WITH LSS EFFICIENCY,GLOBAL
EMPHASIS ON COMPETITIVENESS
FUTURE
PERFORMANCE
AND
SUSTANIBILITY
FACILITIES CLOSE TO URBAN INNOVATIVE AND CUSTOMIZED
AREAS WITH BUILDINGS,SPACIOUS,SUSTAINABLE
LEGACY OPERATIONS, OPEN TO CUSTOMERS,
INFRASTRUCTURE PARTNERS AND THE COMMUNITY
AND POOR
SUSTANIBILITY
PERFORMANCE
TECHNOLOGY TYPICALLY INTEGRATED VALUE CHAIN
AFOCUS ON LOW APPROACH,DIGITIZED, BIG DATA
RISK AUTOMATION ENABLED,ADDITIVE PROCESSES
AND PRODUCT AND MANY NEW ADVANCED
TECHNOLOGIES MATERIAL
RELIANT ON
TECHNOLOGY
FROM EQUIPMENT
SUPPLIER
SKILL OF TYPICALLY INCREASINGLY KNOWELDGE BASED
PEOPLE TECHNICIAL AND WORK,CONTINUOUS IMPROVEMENT
PROFESSIONAL PRINCIPLES,MULTI-SKILLED
WORKERS, WITH
PROCESSESS ON
MATERIAL
INTERVENTION

TABLE NO.: 11

10. SKILLS REQUIRED FOR IMPORTANT TECHNOLOGIES FOR

FUTURE MANUFACTURING ACTIVITIES
SL NO TECHNOLOGIES LIKELY FUTUREIMPACTS
1 INFORMATION MODELLING AND
TECHNOLOGY SIMULATION INTEGRATED
INTO ALL DESIGN PROCESSES
WITHVIRTUAL REALITY
TOOLS WILL ALLOW
COMPLEX PRODUCTS AND
PROCESSES TO BE ASSESSED
AND OPTIMIZED WITH
ANALYSIS AND NEW DATA

101 | P a g e

2 SENSORS
STREAMS.
THE INTEGRATION OF
SENSORS INTO NETWORKS
OF TECHNOLOGY SUCH AS
PRODUCTS CONNECTED TO
INTERNET WILL
REVOLUTIONIZE
MANUFACTURING. NEW
DATA STREAMS FROM
PRODUCTS WILL BECOME
AVAILABLETO SUPPORT NEW
SERVICES, ENABLE SELF-
CHECKING INVENTORIES
AND PRODUCTS WITH SELF
DIAGONSTICS FAULT BEFORE
FAILURE AND REDUCED
ENERGY USE.

3 ADVANCED NEW MATERIALS WILL

MATERIALS INCLUDE REACTIVE NONO –
PRACTICLES , LIGHT WEIGHT
COMPOSITES,SELF-HEALING
MATERIALS ,CARBONADOES-
TUBES,BIOMATERIALS AND
INTELLIGENT MATERIALS
PROVIDING USER FEEDBACK
4 SUSTAINABLE THESE WILL BE REDUCED TO
TECHNOLOGIES RESOURCES USED IN
PRODUCTION INCLUDING
ENERGY AND WATER,
PRODUCE CLEAN ENERGY
TECHNOLOGIES AND
DELIVER IMPROVED
ENVIROMENTAL
PERFORMANCE OF
PRODUCTS MINIMIZING THE
USE OF HAZARDOUS
SUBSTANCES
5 BIG DATA AND THIS WILL BE IMPORTANT IN
KNOWELDGE BASED THE ON-GOING AUTOMATION
AUTOMATION TO MNY TASKS THAT
FORMELY REQUIRED PEOPLE.
THE VOLUME AND DETAILS
OF INFORMAION CAPTURED
WILL FUEL FURTHER
INCREASE IN DATA
ALLOWING FIRMS TO
UNDERSTAND CUSTOMER’S
PREFERNCE AND
PERSONALIZED PRODUCTS

102 | P a g e
6 ADVANCED AND ADVANCES ARE LIKELY TO
AUTONOMOUS MAKE MANY ROUTINE
ROBOTICS MANUFACTACTURING
OPERATIONS OBSOLETE
7 ADDITIVE THIS IS EXPECTED TO HAVE
MANUFACTURING PROFOUND IMPACT ON THE
WAY MANUFACTURES MAKE
ALMOST ANY PRODUCT. IT
WILL BECOME ONE
ESSENTIAL TOOL ALLOWING
DESIGNS TO BE OPTIMIZED
TO REDUCE
WASTE.,INVENTORIES OF
SPARE PARTS TO BE
REDUCED,GREATER
FLEXIBILITY IN THE
LOCATION OF
MANUFACTURING,PRODUCTS
TO BE PERSONALIZED TO
CONSUMERS
8 COMPOSITES AND THIS WIL REDUCE
POLYMER PRODUCTION TIMES AND
COST, INCREASE
LIFETIME,INCREASE
PERFORMANCE AND RESULT
IN TO SIGNIFICANT ENERGY
SAVING BOTH IN
PRODUCTION AND
OPERATION
9 COATINGS ATOM TRANSFER PROCESS
LIKE CVD AND PVD
PROCESSE,PRACTICLE
TRANSFER PROCESS LIKE
SLURRY SPRAYING,FLAME
SPRAYING AND PLASMA
SPRAYING
10 NANOTECHNOLOGY IN AEROSPACE DOMAIN THE
NANO TECHNOLOGY FALLS
INTO FIVE POTENTIAL AREAS
LIKE COATING STRUCTURE
MATERIAL,
SENSORS,ELECTRONICS AND
ENERGY/EMISSION
REDUCTION
11 CLOUD COMPUTING COMPUTERIZED
AND CMSE MANUFACTURING
EXECUTION SYSTEM (CMES)
WILL WORK INCREASINGLY
IN REAL TIME TO ENABLE
THE CONTROL OF MULTIPLE

103 | P a g e
 ELEMENTS OF THE
PRODUCTION PROCESS.
OPPORTUNITIES WOLL BE
CREATED FOR ENHANCED
PRODUCTIVITY, SUPPLY
CHAIN MANAGEMENT,
RESOURCE AND MATERIAL
PLANNING AND CUSTOMER
RELATIONSHIP
MANAGMENT.

12 PLASTICS FLEXIBLE AND

ELECTRONICS TRANSPARENT ELECTRONIC
CIRCUITS IN WHICH ACTIVE
MATERIALS ARE DEPOSITED
AS PRINTABLE INKS ON TO
POLYMER BASED
SUBSTRATES USING
VARIOUS PRINTING
TECHNOLOGIES
97

11. CRITICAL SKILLS

Critical sills refer t particular capabilities needed within an occupation or the qualitative
deficiencies that may exist or develop in the skills apparatus of the existing workforce.

Critical skills, in keeping with international trends refers to

Particular occupationally specific ‘top-up’’ skills required for performance within that
occupation to fill a ‘’skills gap’’ that might have arisen as a result of changing
technology.

Specific key or generic and top-up skills within an occupation. These would include
cognitive skills (problems solving) mathematical skills, customer handling skills,
teamwork skills, and communication technology skills.

12. SRIS UP-LOADED TO SDM PORTAL FOR ONLINE APPLICATION

The SRIS portal will work piggyback to the SDSM portal having connectivity to all stake
holders to the company. SDSM will take, compile and generate useful reports on skill
requirement and the solutions to address the same.

104 | P a g e
 98

TABLE NO: 12

STEPS FOR IDENTIFICATION OF SKILL REQUIREMENT AND

ASSESSMENT OF SKILL GAPS

SL.STEP- 1 STEP – 2 STEP -3 STEP - 4 STEP - 5 STEP - 6

NO.Understand the Identify Assess the skill Set goals and Implement Monitor &
organisation’s key competencies and prioritize the path solutions measure results
strategies, goals skills that map to group of filling gaps and
and strategies & communicate
performance metricsperformance the impacts
metrics

1 What factors in Identify the core Define the Establish base line With key leaders inDemonstrate
economy & competencies for scope how the as a measure of the organization closing the skills
the organization organization employee’s prioritize solutions gap has
Market most will address the gapwill address thecurrent skills and the secure increased
influences the and consider gap and funding and organizational
organization? starting with one consider resources needed performance
function or businessstarting with to the work while improving
one function productivity &

105 | P a g e
 unit as a plot or business unit reducing coat
as a plot

2 What are the Identify current Use analytical Set goal for closingCreate organizationEnsure the
organizations key needs as well as tools such as gaps between ` wide plan to measures are
strategies and those for the next impact existing skill sets address the skills fully aligned with
goals and three to seven mapping to and those needed gaps the
performance years identify to support organization’s
matrices for performance current & future measures of
those? behaviours goals success
required to
meet the
specific goal

3 What business Working with the Conduct a Determine which Prioritize what Use assessment
functions have the leaders of key capability audit paths to take to fillorganization can tools to measure
most impact on business functions ,to determine particular gaps- implement and progress before
the success of determine which where the gaps outsourcing, sustain even if and after
organization? skills and exist in hiring, training & there are learning &
competencies employee’s development, disruptions, development
their employee knowledge skillcoaching & changes and takes place
need to be able to mentoring. challenges to the
meet key goals organization.
and be effective at
implementing
strategies

4 Which makes withinMap current and . Determine how For identified Communicate
those units have the future results in filling knowledge & skill progress and
impact on the competencies to skills gap will be gaps, create results regularly
current & future current and future measured learning & to the
success of the strategies and development stakeholders
organization goals opportunities using

106 | P a g e
 99

TABLE NO: 13

MATRIX FOR CRITICAL SKILLS

SL SKILL CRITICAL SKILLS DIVISIONS INVOLVED

NO AREA
. IDENTFIED

1 Aircraft Aircraft structure assembly Aircraft drive BC & Helicopter Kanpur Div
Assy & including drilling, reaming, MC Div, HC
testing reverting& trimming

2 Installation, integration & Aircraft drive BC & Helicopter Kanpur Div

functional checks of MC Div, HC
Hydraulic systems

3 Installation, integration & Aircraft drive BC & Helicopter Kanpur Div

functional checks and MC Div, HC
pressurization of fuel system

4 Installation, integration & Aircraft drive BC & Helicopter Kanpur Div

functional checks of Flight MC Div, HC

107 | P a g e
 control system

5 Aircraft painting Aircraft drive BC & Helicopter Kanpur Div

MC Div, HC

6 PRC/sealant application Aircraft drive BC & Helicopter Kanpur Div

MC Div, HC

7 Installation, integration & Aircraft drive BC & Helicopter Kanpur Div

functional checks of AP/CP MC Div, HC
& canopy systems

8 Avionics/ Rader system Aircraft drive BC & Helicopter Kanpur Div

installation & integration MC Div, HC
techniques at Aircraft level

9 Engine Aero engine assembly-turbo Engine Div, BC& MC

ass y& fan & turbo shaft assembly
testing techniques

10 Engine test bed preparation, Engine Div, BC& MC

test bed and test rig
maintenance
11 Transmission assembly HD ,Koraput, engine,
BC

12 Avionics Assy, Functional checks and Avionic Divs,

LRU associated snag rectification Korwa
Assy& of instrumentation systems.
Testing

13 Assy, , Functional checks and Avionic Divs ,

associated snag rectification Hyderabad
of radio & radar systems

14 Crimping and assembly of Aircraft divs BC & Helicopter Div, Kanpur,

signal cable harnesses and RF MC HC Hyderabad,
cable assemblies. Korwa Div.

108 | P a g e
15 Trouble Shooting of RF Avionics Divs,
PCBs and multilayer PCBs Hyderabad &
Korwa AC

16 PCB Manufacturing Avionics Divs,

Hyderabad

17 Mechanic Assy, test and repair various Accessories Divs, Lucknow

al LRUs electrical, Hyd ECS Mech
like LRUs
aircraft
pumps
motors &
actuators

18 Gear manufacturing HD, Koraput, Engine, BC

19 CNC Machining All Divisions except Korwa, Hyderabad, CMD, OH,F&F

20 CNC programming skills on All Divisions except Korwa, Hyderabad, CMD, OH,F&F
various operations platforms
like Franuc, Sinumerik,
Hidenhen etc.

21 Sheet metal forming All Divisions except Korwa, Hyderabad, CMD, OH,F&F

(Hot, Stretch, Fluid, CNC)

SL SKILL CRITICAL SKILLS DIVISONS INVOLVED

AREA IDENTIFIED
N
o.

22 Welding Tig welding, Shielded metal All Divisions except Korwa, Hyderabad, CMD, OH,F&F
Arc, Gas welding

23 Chemical Chemical milling & etching All Divisions except Korwa, Hyderabad, CMD, OH,F&F
process
24 Anodising All Divisions except Korwa, Hyderabad, CMD, OH,F&F

25 Plating( nickel, chrome, All Divisions except Korwa, Hyderabad, CMD, OH,F&F
copper, cadmium, silver)

109 | P a g e
 PCB processing operation Avionic Divs, Hyderabad
like Electroplating, Metal
26 etching, metal stripping, hot
air levelling and VL_931
vanish on internal surfaces of
wave guides.

27 Plastics Plastic/FRP/GRP Forming Aircraft Divs BC & MC

28 Composit Composite Layup & CMD. Aircraft, BC

es bonding

29 Foundry Precision casting F&F, Koraput

& Forge
30 Precision Forging F&F, Koraput

31 Heart Heart treatment processes All Divisions except Korwa, Hyderabad, CMD, OH,F&F
Treatment like Annealing. Hardening,
Tempering
,hardening/carburising
/intruding

32 Tooling Tool Fabrication & All Divisions except Korwa, Hyderabad, CMD, OH,F&F
calibration

33 Quality Meteorology & precision All Divisions except Korwa, Hyderabad, CMD
Control Measurement

34 NDT(florescent dye All Divisions except Korwa, Hyderabad, CMD

penetrate test, radiography&
magnetic test)

CHART NO: 9

V. BALANCE SCORE CARD

FLOW CHART FOR BUILDING A BALANCED SCORE CARD

Define Build the

Select priority
Strategic Strategic
initiatives
Destination Linkages
110 | P a g e
 Identity key
Determine Plan for
Themes Driving
measures and implementing
the Strategy
targets

Objectives Measures & Prioritized Implement

Themes
Strategy Targets Initiatives ation plan

5.2.5. SKILL DEVELOPEMNT ORGANISATION

The Organisation Chart of the skill development Organization of the companies placed at
chart no- , will be spear headed by D-HR as per the skill Development Policy. Governing
Council will have responsibilities for all aspects of managing the company’s learning and
skill development structures, system, processes for both officers & employees.

103

Governing council will be responsible for reviewing and updating the skill development
management system for ensuring its adequacy for meeting the skill requirements of the
divisions and the company.

The HR will be complete authority for approval and subsequent review and reissue of the SDMS
document and changes in the organization structure if necessary.

CHART NO: 10

ORGANISATION CHART FOR SKILL DEVELOPMENT:

D-HR OED (HMA)

GOVERNING
COUNCIL (L&D)
111 | P a g e ED (HR)-CO
 AGM/GM (SKILL DEV)-CO HR OFFICER(IN-
CHARGE)SKILL
DEV OF
DIVISION

Head, TTI, Head, TTI Head, TTI, Head, TTI, Head, TTI, Head, TTI, Head, TTI,
Bangalore Nasik Koraput Lucknow Kanpur Korwa
Hyderabad

104

CHART NO: 11

SKILL DEVELOPMENT ORGANIZTION CHART

Head of skill Two office

development assistants

Executive Executive Executive Executive quality Executive IT,

Programme innovation & standards & Assurance MIS &
development Employee Document Monitoring
& project Engagement
management

Executive Executive
Executive Job Description: Job Description:
Employee information
project 1. To develop FS & 1. To develop skill
Engagement job roles technology
112 | P a g e
manageme development quality
2. To formulate assurance system
nt
syllabus, which includes
curriculum & validation of training
course-ware
 Job Description: Job
Job 1. To support Description:
Description: innovate 1. To evaluate
Facilitate product/practices to the
identificatio add value to the skill performance
SYSTE
n of skill & development of TTIs through
competencie 2. To facilitate various MIS
s employee
reports
Facilitate engagement/innova
skill gap tion involving shop 2. Tocreats&
analysis in charges &HR
maintain skill
Facilitate heads.
implementat 3. To formulate development
ion of employee portal, skill
learning engagement data baric,
solutions strategies networking of
4. TO draft MOU all divisions,
with sector skill
CD, HMA
council for
optimization of
resources &
monitoring the
same
105

5.3. SKILL DEVELOPMENT QUALITY ASSURANCE SYSTEM

(SDQAS)

5.3.1. QULITY ASSURANCE STANDARDS

1. OBJECTIVE OF SKILL DEVELPOEMENT QUALITY ASSURANCE

SYSTEM
To set-up a robust and stringent certifications & accreditations process to ensure consistency &
acceptability of standards.

Focuses on accountability measures that can be linked to investment and performance

management in a skill development system.
Serve as a common reference to ensure consistency amongst different job rules at all
levels.
Have transparent processes and procedures to ensure mutual understanding and trust
between different job rules.

Kill system has indicators, used to measure their efforts to achieve quality and relative priority
placed on the different chosen.
113 | P a g e
 Teaching and training staff are well-qualified and familiar with workplace practices.
Facilities utilize the latest requirements and technologies.

With adequate skills imparted, a certifying system can ensure only employees who have acquired
the required skill level & knowledge are employed in each activity.

This will help to move towards a greater reliance on self-certifications for quality
&productivity.
This will mitigate the risks of poor quality due to inadequate workmanship which lead to
significant level of rework.
This will be an approach to develop the competitive edge require to complete for greater
volumes of offset and export market.

5.2.2. THE PROCESS APPROACH PHILOSOPHY OF SKILL

DEVELOPMENT SYSTEM
The skill development system has seen designed on process approach model, where resources
are utilised and managed in order to enable transformation of skill of the employees to meet
the performance standards by enhancing knowledge, Understanding & Skill.

106

The process approach is a management strategy which covers:

Understanding and meeting requirements

Consider processes in terms of added value
Obtaining results of process performance and effectiveness.
Continual improvement of processes based on objective measurement.

The skill development system comprises of the following process parameters which need to
confirm to the standard. The process parameters are monitored for meeting the end
requirement of the quality of the trainee as required by the employer to perform the job role
to the required competence.

5.2.3. PROCESS PARAMETERS & PROCESS MODEL:

Infrastructure for Facility, faculty and teaching Technology
Syllabus, curriculum & course-ware
Qualification, evaluation & validation process
Certification process of competence level

114 | P a g e
 Each parameter will have the standard which will ensure the adequacy of meeting the end
requirement followed by audit to confirm that the standard in place &certification that it is in-
order. The flow chart the process model of the skill development system is as follows:

CHART NO: 12

PROCESS APPROACH OF SKILL TRAINING

WORKSHOPS SYLLABUS STANDARDS VALIDATION

LABORATORIES CURRICULUM QUALITY AUDIT
TESTING
TEACHING COURSE COMPALNCE
HARDWARE MATERIAL CERTIFICATION
MEASUREMENT
FACILITIES TRAINING CONTINIOUS
FACULTIES SOFTWARE IMPROVEMENT COMPETENCY

CERTIFICATION

107

CHART NO: 13

PROCESS MODEL OF SKILL DEVELOPMENT MANAGEMENT SYSTEM

(SDMS)

SKILL DEVELOPEMNET PROCESS

QUALITY ASSURANCE

PROCESS CONTROL FOR CONFORMITY AND CONSISTANCY

FACILITY, CURRICULUM QUALIFICATION CERTIFICATION

FACULTY & COURSEWARE TEST & PROCESS OF
TEACHINHG & EVALUATION CONPETENCY
TECHNOLOGY TEACHINH PROCESS LEVEL

115 | P a g e
 TECHNOLOGY
INPUT TEST OUTPUT CONSIST
AND ANTLY
RAW ENROLL SKILLED
MENT FOR
TRAINEE TRAINEE
SS PERFOR
MANCE

FOR UP

SKILLIN
G
STANDARD JOB ROLE QA STANDARD SKILL LEVEL AS
PER NVQF

CAPACITY NON-QP CERTIFICATION AUDITING

CAPABILITY ADEQUCY AUDITING CERTIFICATION

AUDITING AUDITING CERTIFICATION

CERTIFICATION CERTIFICATION

108

5.3. QUALITY ASSURANCE PROCEDURES

5.3.1. QUALITY ASSURANCE is based on the four key functions

a) Validation of training process for ensuring that proper tools, techniques, methodology and
material as suggested in curriculum/standard as used
b) Validation of qualification for ensuring that the qualification reflect the workplace
requirement and expressed in form of competencies with clear assessment criteria.
c) Quality assured assessment of learners for ensuring that the assessment is based on national
standards and uses valid & reliable assessment method
d) Where the skill training is outsourced, accreditation of training providers & training
institutions for ensuring that training is delivered by competent & qualified trainer in well-
resourced and managed institutions

This will be achieved through the following:

116 | P a g e
a. Qualification & certifying system to ensure only the employees who have acquired the
required level of skill and accompanying knowledge can be employed in each activity
b. Quality standards & assurance of teaching technology, facility, curriculum, course-ware,
faculty. Periodically auditing to ensure the standard is maintained

5.3.2. EVALUATION, VALIDATION &CERTIFICATION

a. TRAINEES: Certification framework for competency level will be conform NVQF
guidelines for various job roles.
151
b. TRAINER: Assessments & Certification of Trainer will be done by the guidelines of
assessments of Aerospace sector council.

c. TRAINING FACILITY: place where the training would be given must be arranged with
appropriate machines and tools.

d. TRAINING COURSE-WARE: Quality certification of skill training curriculum as per

standards & QA norms prior to programme roll out.

e. TRAINING CENTERS : Accreditation of training organisation with respect to course

contents, minimum infrastructure requirement, certification of faculty & level practical
exposure

109

5.3.3.1. AUDITING
Regular & periodical internal & external auditing of the training system must be done by trained
& authorized auditors & non-compliance reports (NCR) must be generated in case of non-
conformances.

5.3.3.2. PREVENTIVE & CORRECTIVE MEASURE:

PDCA Cycle to be implementing for preventive & corrective measures

5.3.3.3. MONITORING, REVIEW & FEEDBACK MECHANISM:

Regular & periodical review mechanism & feedback from trainees &trainers must be
established.

117 | P a g e
5.3.3.4. DEVELOPEMENT OF AEROSPACE SPECIFIC STANDARDS &
CERTIFICATIONS
Mapping of job profiles as qualification pack, occupational standards & competency standards
as NOS, must be available. This will conform to the NOS-QP of Aerospace skill council being
set-up by HAL.

5.3.3.5. SKILL TRAINING DELIVERY QUALITY ASSURANCE

A) INTERNAL FACILITY: Adequate number of workshops/ laboratories, with required
equipment &facilities, must available with required number of trained trainers.

B) OUT-SOURCING: Training institute to be identified for skill training outsourcing. The

process for accreditation of these institutes must be ensured.

5.4. TRAINING FOR THE TRAINERS (TOT)

Training for the trainer program is a form of imparting to an individual with a view to prepare
them for his future role as a trainer. This is a process which aims at develop his capability
and capacities of imparting training to others as a skilled professional. Besides, tot also aims
to help organisation to build their own cadre of trainers. Thus TOT has a dual role to play:
individual growth and the organisational growth. The focus of TOT is not only to build a
cadre of trainers, but also to develop necessary orientation, awareness and ability to perform a
catalytic role as facilitators of change.

110

Objectives of TOT:
Especially TOT is aims at the followings:

To use training as a tool of social change.

To help organisation in their efforts of human resource development for acceleration
growth oriented participatory action at the local level.
To promote the activity of training for field level training activities.
To develop necessary skills in designing and organising the training programmes.
To provide an understanding of principles and practices of the training process.
To sharpen communication skill of the trainer.
To build up the trainers skill regarding the organisational management aspect of the
training programmes.

118 | P a g e
5.5. TRAINING PROGRAM CONDUCTED BY HAL FOR RURAL AREA
Providing training to the surrounding area people

Hal provides CSR activities to people of the surrounded village for their livelihood. It is also
known as lively hood training. This training is provided make them enable for their self
income. There are two types of training normally provided by the organisation which is
sponsored By HAL.

TABLE NO: 14

A) INFORMAL TRAINING PROGRAM:

TRAININGS PERIOD

Tailoring 3 – 6 months
Mushroom cultivation 3 months
Agarbati 3 months
Soft doll/ toys making 3 months
Candle making 3months
Beauty-Parlour 3months

111

B) FORMAL TARINING PROGRAM:

TRAINING PERIOD

Cad cam training 6 months-1yrs

(Technical, CPET)
Plastic 9 months
(PPMMT, Mole manufacture)
Apprentices 2yrs-3yrs

5.5.1. ASMSCX:

119 | P a g e
(Ashutosh Manpower and Consultancy)

This organisation has signed MOU which Government of India and also with the HAL,
Koraput Division in 19th Nov 2015 for generating employability especially for youth under
the Pradhana Mantri Kaushal Vikas Yojana. HAL is providing the infrastructure for each and
every student to make this program successful.

This program is conducted in two ways:

A) DDUGKY :

(Dean Dayal Upadhaya Gramen Kaushalya Yojana)

This program is mainly conducted for generating employability for the rural people.
Especially focuses the Residential people.

B) OSENS :

(Orissa State Employment Mission Service)

These programs mainly target the urban people and try to create the employment for them.
Right now DDUGKY program is running successfully as more no of rural people are
approaching positively. Urban people are also coming forward but the no. is less.

Hal and ASMSCX are together putting efforts to aware people about this program. They
promote the program with the help of block office, banners, Block Nijukti Mela and District
level Nijukti Mela and lastly by word of mouth.

112

5.5.2. PROCESS:
1) APPLICATION :

Here application are received and the scanned.

2) SELECTION :

Here first one aptitude test is conducted to test the knowledge of the candidates and
behaviour of the selected candidates is studied for the next ten days. After that a batch of 30
students are taken in a group at a time. Here the first comes are served first.

3) TRAINING :

120 | P a g e
 There are different types of trades, according to the interest of the candidates their given
the appropriate training.

TRADES MONTHS

Helper Training Bar Bender 3 months

Helper Bar Bender and Steel fixer 6 months
Assistant Bar Bender and Steel Fixer 6 months
Helper Mason Level-1 3 months
Retail trainee Associate 6 months

4) SKILL SET ANALYSIS:

It is a continuous evaluation process through which the trainer gets to know about the
progress of the trainee in regular interval. In the gap of every 15 days there will be an exam
for every trainee among which the first exam will be surprise test and at end of every month
there will be a monthly test.

5) SKILL MATCHING :

In this process the skill set of the trainees are tested and find out that they are able to work in
foreign and domestic country. Those who want to work in foreign country if they need any
special training that is provided before their joining

6) JOINING IN THE ORGANISATION:

Institute also make assure that people will join in their respective field in privates, public and
Govt. Sector companies and also in foreign countries also.

113

7) FOLLOW UP :

If anyone is unable to get the job after completion of the training period they are followed up
for at least from 3 months - 8 months. Till yet 101 people ate already get employed in
different organisation. Almost 80% of the trainees get engaged in different companies within
first 2 months. Mostly they are placed in the location like Quart, Saudi- Arab like foreign
countries and Hyderabad, Pune, Gujarat, Odisha, Vishakhapatnam in India. This skill
development program main is to generation of employability and its playing its role in
amazing way right now.

121 | P a g e
 114

CHAPTER-6
REVIEWS

6.1. REVIEWS FROM PARTICIPANTS

1) In their opinion, it is a vital activity for some shops because skill development is need in
very organisational set up for matching their skill sets with organisational requirements. This
has two aspect of training. One is the training for the trainers who are going to train the
trainees and other one is training for trainees. This process will help the employees and works
in stress handling process, enhancing their skill sets for effective production.

122 | P a g e
2) It is a relevant process for an organisation and the benefit of this process can be derived for
life time. By the help this program the unskilled workers can be converted in to skilled level
and skilled workers can be act as a mentor to the unskilled and semi-skilled group. This will
ultimately have a positive impact of on production process. This process would help the
mentor for convenient delivery of the skill to the mentees.

3) By nature it is very relevant process for the organisational set up. It works as an additional
activity for this shop because the workers are highly skilled and busy in their primary job. If
this activities will conducted there will be cutting of the time of the worker from the primary
job, which will affect the productivity of the organisation. Skill development program has
positive impact but as it is a new concept so it is not properly understood till yet.

4) It will help in the transformation of knowledge and skill from superior to the subordinates.
This skill will help them for a life time period. If a person also moves to another division of
same shop he can also apply his skill there. It will help in effective utilisation of time,
machine and manpower in the organisation.

5) This is a relevant process for the Aero-engines set up through which employee’s skill sets
are going to be further refinement stages. But as the works are highly skill and there is a
negligible amount of skill gap, so it is an additional process. It is required only when there
will be any technological change.

6) The process needs to be more focused. Apart from the managerial and behavioural skill it
should be included with some technical skill training according to the requirement of
different shops. He feels that the information’s are not enough to guide the trainers and
supervisors. Only one part sounds relevant that is basic parameters for measurement of
training.

115

7) It is a vital activity for an organisation that will helps the trainer to provide training to the
new comers in such a way that they will feel comfortable in the organisation set up. It will
improve the confidence of trainer and training and boost up their morality level and will help
them to improve their commitment towards the organisation. This kind of program should be
conducted one in a year.

8) There should be practical example of problem solving approach with live examples. Only
managerial skill and behavioural skill sets may not be much helpful for any mentor. Its
benefit can only be derived if there will training program in a regular interval. Otherwise
trainers may forget the lessons along with the passage of time.

9) It will help in changing the mind set of old worker i.e., some old employees don’t want to
transfer their skill set and experience to the subordinates. It will help in developing the

123 | P a g e
effective communication to convince them. It does also develop the skill sets to for effective
communication process to instruct the new workers and convince the old worker to adopt
new process.

10) This training should be given from bottom line of the organisation. The opinion of the
head of the division should be taken prior before conducting the training program. Feedbacks
mechanism should be induced properly. Follow up mechanism must be set up rigidly not only
in paper pen work but also practically after the training is given.

11) It is a kind of recharge program for the mentors. It is highly relevant for the aero-engine
set up. It will reduce the rejection, improve the quality of the product and enhance the skill of
the workers to perform their work effectively. Training program will helps in identifying the
skill gaps and reduce it as soon as possible. It will motive the trainer and trainees and give
them confidence to perform their work efficiently.

12) Less man power is available in the organisation in comparison to the machinery. So if
people will spend their time on these activities the production of the organisation may be
hampered. The primary aim of the shop and organisation is produce quality products and
delivery that on time that cannot be achieved. These programmes should be conducted after
the working hours are over. The programmes should be conducted ones in three / four years
of interval.

116

6.2. CONCLUSION DRAWN FROM THE AVAILABLE DATA:

This program is relevant for the Aero-Engine set up. It will enhance the skill sets of the
employees by reducing the skill gaps and also help the trainer to demonstrate the trainees in
better manner. It improves the quality standard of the product; reduce the rejection and
effective utilisation of man and machine.

Though this has positive impact on the company but it may not be communicated properly by
organisation due to ineffective communication gap.

124 | P a g e
 117

CHAPTER-7
Findings, Limitations, Suggestions & Conclusion

7.1. FINDINGS & LIMITATIONS:

Ensuring a skilled workforce is a prime requirement of technology intensive industries like
Hindustan Aeronautics Limited. Hence Skill Development programme finds a relevant place
in its business strategy.

125 | P a g e
From the intensive study of the available secondary data it is quite clear that company has
established a quite strong policy for skill Development Implementation in line with the Skill
Development initiatives of Government of India and “Make in India Initiatives”. The frame
work, various cross functional Implementing teams and Infrastructure in terms of website
Development has already taken place. However as this is being done for the 1st time and there
are more than 20 Divisions, 10 R & D centres and a huge workforce scattered in these
multifarious Divisions makes it time consuming process to complete the cycle. Hence the
concept is in pilot project stage only. An extended study with a lapse of another 6 months
may yield into a better and clear picture of the concept with practical examples available,
which will help in visualizing a complete picture of Skill Development Initiative in HAL.

As the study conducted it was analysed by the concerned officials that the type of skill
required or the type of training required for these specialized workforce, is not available with
the outside training institutions, as the quality and accuracy of aero engine components is
beyond comprehension. Hence trainers have to be identified from the Existing Subject matter
Experts (SMEs) only.

Hence an idea of TOT (Training to the trainers) has been generated and implemented as a
parallel activity with the skill mapping process. Accordingly from Every shop and
manufacturing area middle level managers having exposure to all the section of the particular
shop have been identified as SMEs and they have been trained how to impart training to the
identified workmen(whose skill mapping and gap analysis will be done in due course of time)
with the various behaviours patterns.

Apart from this, it was also opined that the human resource of this organization are
already trained and huge amount of expenditures have already incurred during their
induction and on the job training as a pre-requisite practice in the regular past.
These additional training as an enforced condition of the Government of India is
viewed as an additional repetitive cost to the company.

118

It is difficult to establish the direct link between employee training and

enhancement of productivity in the organization. There is no established method to
measure the effectiveness of training programmes. Hence ROI (Return on
investment) measurement is a bottleneck of this project.

Skill development policies, Skill development quality assurance system and skill
development frame work are quite strong in the HAL.

As it is in the implementation stage so skill mapping and employees opining in the

training has been phenomenally completed. However gap analysis, validation by
HOD & training need assessment are yet to be identified for different shops.

126 | P a g e
 In a small set up it is quite easy to implement. But in the large scale organisation
like HAL it is very difficult to implement the policy so first.

It is found that this program is helps in generation of the employability for the rural
people also.

7.2. SUGGESTION
The following are the recommended suggestions

It will be helpful for the organisation if Multi-skilling approach will be followed for
transforming the skill sets and it can be helpful in overcoming dependability and
absenteeism issues.

The skill development cycle should be completed in coming future for evaluation of
the effectiveness of the program in the organisation.

The investments required for the implementing the program should be granted in
proper time.

119

7.3. CONCLUSION
Skill is the backbone for Aero-engine set up because worker
required very specific skill set to perform their jobs according to their assigned shops. As
their skill requirement are very specific in nature so other institution are unable to provide
training for this program. Hence, the shop heads are assigned as a trainer for providing
training program effectively. Skill development program will be help in enhancing the skill
set of the program. So if it would be implementing properly in the organisation in the near
future then it would definitely going to beneficial for the organisation.

127 | P a g e
 120

Chapter-8
BIBILOGRAPHY
1. https://www.sdi.gov.in/en-US/Pages/SDISHome.aspx
2. http://www.tandfonline.com/doi/abs/10.1080/10429247.2004.11415252
3. https://en.m.wikipedia.org/wiki/Pradhan_Mantri_Kaushal_Vikas_Yojana
4. http://nifaindia.com/skill_projects
5. http://www.pmindia.gov.in/en/news_updates/pradhan-mantri-kaushal-vikas-yojana/
6. http://www.hal-india.com/Engine%20Division%20Koraput/M__138

128 | P a g e
 7. http://projects.worldbank.org/P118101/skills-development-project?lang=en
8. https://www.adb.org/projects/38176-015/main
9. https://www.pmi.org/learning/featured-topics/skill-development
10. http://ficci.in/sector/74/Project_docs/SectorProfile.pdf
11. http://www.ndtv.com/india-news/pm-modi-launches-skill- india-initiative-that-aims-to-
train-40-crore-people-781897
12. http://www.msde.gov.in/
13. http://shodhganga.inflibnet.ac.in/bitstream/10603/2540/8/08%202.
14. https://www.brianmac.co.uk/articles/rindexski.htm
15. https://www.researchgate.net/publication/258844928
16. https://scholar.google.co.in/scholar
17. https://www.researchgate.net
18. http://www.ed.ac.uk/education/rke/centresgroups/creid/projects/lit-review-skills-dev
19. https://dehatindia.org/donate/?gclid=Cj0KEQjwy4zLBRCOg6-
4h6vs3cUBEiQANyzfuxG8zrVKppzNh4w2ROqdDmtR2UAqXikOsWHgsF_GUaAnJf
8P8HAQ
20. http://journals.sagepub.com/doi/abs/10.1177/0266242697153004
21. http://cafindia.org/campaigns/kaushal-india-campaign
22. http://www.ilfsets.com/skilldevelopment/
23. https://www.thebalance.com/what-is-human-resource- development-hrd-1918142
24. http://www.businessdictionary.com/definition/human-resource-development-HRD.html
25. http://www.businessdictionary.com/definition/human-resource-development-HRD.html
26. https://en.wikipedia.org/wiki/Training_and_development
27. https://en.wikipedia.org/wiki/Training_and_development
28. https://en.wikipedia.org/wiki/Needs_assessment
29. https://www.pmi.org/learning/featured-topics/skill-development
30. http://www.abahe.co.uk/business-administration/Quality-Management-Systems.pdf
31. http://skillbild.com/
32. http://www.cammgnt.com/Brochure/Effective%20QMR%20Skills%20Development.pdf
33. http://india-euskills.com/
34. http://indianconsulate.com/page/display/129

121

35. http://www.mapsofindia.com/my-india/society/skill-india-a-new-programme-to-be-
launched-in-march-2015
36. http://www.ndtv.com/topic/skill-development

129 | P a g e