RESEARCH METHODOLOGY

Transcription

1 Chapter: - IV RESEARCH METHODOLOGY

2 Chapter No: - IV RESEARCH METHODOLOGY 4.1: Research Methodology: The researcher has studied the innovative HR practices adopted by automobile sector with special reference to passenger car manufacturing multinational companies in Pune District of Maharashtra state. This research was both exploratory and descriptive in nature and it has utilized both quantitative and qualitative data collection tools. In view of the objectives and hypotheses stated the methodology adopted for the present study is elaborated as under. 4.2: Objectives of the study: The objectives of the study are as listed below: 1) To study the automobile industry in India with special reference to passenger car manufactures in Pune District of Maharashtra state. 2) To understand the importance and significance of the innovative HR practices adopted by the select multinational companies of automobile sector. 3) To find out the HR challenges faced by select automobile multinational companies. 4) To find out differences in HR practices of the select multinational companies. 5) To suggest measures if any to overcome the challenges faced by the HR department. 51

3 4.3: Hypotheses of the study: Research study has covered following hypotheses: This research has formulated the following hypotheses: Hypothesis 1: The innovative HR practices implemented differ significantly among the automobile multinational companies. Hypothesis 2: Strategies used for employee retention are different in different automobile sector multinational companies. 4.4: Sources of Data: The researcher adopted survey method to collect the required information for the study. The researcher has used primary and secondary data collection methods for this research : Primary Data: The researcher has collected required information for innovative HR practices adopted by automobile sector from the executive level managers of the select passenger car manufacturing multinational companies in Pune District of Maharashtra state. The primary data was collected through questionnaire, discussion, interviews, observation and necessary field work. The researcher had conducted pilot survey to clarify and finalize the key issues pertaining innovative HR practices. After the pilot survey the selected organizations were visited and responses were collected. A comprehensive questionnaire based on the data required for objectives and hypothesis was designed. All the questions were applicable to the selected HRM functions practiced in the selected automobile sector multinational companies. Open-ended opinions were further included in the 5 Point Likert scale for obtaining ranking. An 52

4 all inclusive questionnaire is used for data analysis. The Questionnaire is appended to this thesis as Annexure-I 4.4.2: Secondary Data: The sources for secondary data comprised of existing published and unpublished literature, which was used for laying the conceptual foundation, review of literature relevant to the study and statistical data with respect to the study. Large number of published text and reference books were referred for clarifying the theoretical concepts. Previous research in the field of the present study was reviewed by referring to research journals, trade magazines, reference books and Ph.D. research work, different websites, newspaper articles etc. 4.5: Statistical Tools Used: The statistical primary data for research is processed on a Personal Computer (PC) with use of appropriate statistical tools like spreadsheet application software like MS Excel to generate tables and graphs for data presentation; further the primary data was analyzed using SPSS software and interpretation were drawn. Researcher has also used Excel spread sheet, SPSS computerized software with one way ANOVA test applied to test the various hypotheses set for finding inter relationship between and among different variables. 4.6: Sample Design: 4.6.1: Criteria for selecting the Automobile manufacturing Multinational companies in Pune district in Maharashtra state: India is becoming the potential destination for automotive industry, in recent few years Pune district in Maharashtra state is recognized as the leading center for the automotive sector in India, as well as one of the top automotive centers globally. A large number of engineering, electronic and electrical industries, also investments in areas like floriculture and IT-enabled services are based in Pune. With huge employment potential opportunities people in the country travel to Pune, 53

5 this factor has attracted the leading multinational automobile companies to open their manufacturing facility centers in Pune. Therefore Pune district satisfy the set criteria for the research study : Universe of sample: In Pune district there are more than 10,000 automobile manufacturing and automobile ancillaries units in the large, medium and small scale sectors. For the present study researcher has focused only upon automobile sector passenger car manufacturing multinational companies in Pune district. There are totally eight automobile sector passenger car manufacturing multinational companies in Pune district, the detailed list of companies is as follows: Table No. 4.1: Automobile Sector Passenger Car Manufacturing Multinational Companies in Pune District Sr. No. Name of the Company 1 FIAT Automobiles 2 TATA Motors Ltd. 3 Volkswagen India Ltd. 4 Mahindra Vehicle Manufacturing Ltd. 5 Piaggio Vehicles Pvt. Ltd 6 General Motors India Pvt. Ltd. 7 Mercedes India Pvt. Ltd. 8 Force Motors Ltd. Through the source as well through personal visit to the office of Mahratta Chamber of Commerce Industries and Agriculture located at Senapati Bapat road Pune. 4.7: Sampling Method: The researcher has selected purposive quota sampling method, as the scope of this study is limited to eight automobile sector passenger car manufacturing multinational companies in Pune district of Maharashtra state in India. 54

6 4.7.1: Sample Size: A purposive quota sampling method is adopted. Out of total population of executive level managers of the organization 20% respondents has been taken, therefore the total sample size is 168 respondents i.e. 21 respondents from each of eight selected multinational companies is used for collection of the data for analysis. The study confines itself to executive level managers, reason being that these are instrumental in taking major decisions relating to organizational functioning. Their knowledge and experience is vital from the point of view of organizational effectiveness. Other categories of employees namely Nonbargainable, Bargainable, Temporary and contractual have not been included in the category of respondents. Employee category details are as follows: Table No 4.2: Employee Category Details Sr. Name of the Executive Non Bargainable Temporary Contractual TOTAL No. Company level Bargain able 1 FIAT Automobiles TATA Motors Ltd Volkswagen India Ltd. 4 Mahindra Vehicle Manufacturing Ltd Piaggio Vehicles Pvt Ltd 6 General Motors India Pvt. Ltd. 7 Mercedes India Pvt Ltd. 8 Force Motors Ltd

7 4.8: Scope of the study: The research study has vast relevance and significance in the present scenario. A pilot survey of select multinational automobile companies in Pune district has shown that the organizations are facing different challenges in Human Resources Management and are in search of an effective solution with respect to implementation of innovative HR practices. The HR practices for the select human resource management functions such as Recruitment and Selection, Employee Compensation, Employee Motivation, Employee Attrition and Retention, Employee Learning and Development, Quality of Work Life, Employee Job Satisfaction and Corporate Social Responsibility keeping in view their social, cultural, legal, economic and political environment factors are only considered for this research. In view of above facts this topic titled A Study of Innovative HR practices in Automobile Sector with Special Reference to Select Multinational Companies manufacturing passenger car in Pune District of Maharashtra State. The research is carried out during period from year 2009 to : Operational Definitions of select HR Functions: 4.9.1: Recruitment and Selection: The first and fore most function in Human Resource Management is Recruitment and Selection. Recruitment involves the creation of a pool of available human resources for the organization. Procuring the right candidate for the organizational responsibilities is the biggest challenge for HR professionals. Recruitment and Selection is not just hiring people who have skills required to perform particular jobs, it aims to hire employees globally whose styles, beliefs and value systems are compatible with those of the organization : Employee Compensation: Compensation is any form of payment given to employees in exchange for work they perform. Compensation is usually composed of base wage or salary, rewards, perquisites and incentives or bonuses, valued by employees in accordance 56

8 with their relative contributions to organizational development. It also consists of an organization s policies, procedures and rules determining the compensation system. The openness with which compensation decisions are made, and the degree of stakeholder involvement in those decisions create difference that may exist between organizations. The compensation plans are numerous and every company attempts to innovate, some multinational companies are proportionally more generous to certain levels of super performers or executive level, while others believe in principle of achieving equity across all employees : Employee Motivation: Motivation is the process of creating organizational conditions in which people are willing to work with zeal, initiative, interest and enthusiasm, responsibility, loyalty and discipline and with pride and confidence in most cohesive manner, so that the goals of an organization are achieved effectively. Achieving organizational goal, vision, mission, retaining the employee and keeping everything in place, employee motivation is very important for every organization. The present market scenario for delivering right products on right time and to satisfy customer needs, competent motivated manpower for every organization is required : Employee Attrition and Retention: Today s highly competitive world, without an inspired workforce, organizations face breakdown of authority, work related stress, early burnouts, increased intolerance, higher attrition rates and subsequent costs of replacement are prominent issues before organizations. Employers, face major challenges when they consider the increasing difficulty of finding skilled people, a younger workforce with different attitudes and with large financial ambition from work, and also growing population of older workers heading toward retirement. Such voluntary quits issues have made organizations to focus upon the employee retention strategies. 57

9 4.9.5: Employee Learning and Development: Learning and Development is an important as well as non separable ingredient of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format. It clearly indicates that the companies which have successfully implemented training programs have been able to deliver customer goals with effective results. It shows that good training results in enhancement of individual performance, which in turn, helps the organization in achieving its business goals : Quality of Work Life: Employee work and family life have become complimentary factors to each other. If employee s work life gets disturbed, it affects badly on his/her family-life and vice-versa. Harmonious relations between work and family life of employee are having the direct effect on his productivity. To bring the peaceful and stressfree minds at work and improve the productivity is the challenge in front of strategic human resource management. The quality of work-life strategy offers a variety of means to reduce stress levels and increase job satisfaction in the employee while enhancing business benefits for the employer : Employee Job Satisfaction: Job satisfaction refers to a person s attitude toward his job, his attitude may be positive or negative. A number of individual s characteristics such as health, age, level of aspiration and social status while organizational activities such as pay and benefits, supervision, working condition, the nature of work and company policies, influence upon employee job satisfaction. Only a satisfied employee can become an engaged employee. Therefore it is very essential for an organization to see to it that the job given to the employee matches his career goals which will make him enjoy his work and he would ultimately be satisfied with his job. 58

10 4.9.8: Corporate Social Responsibility: Every decision and actions taken by business enterprises contemplates social implications. Be it a takeover, diversification, opening up of a new branch, closure of an existing unit or automation, the society is affected in one way or other. Corporate Social Responsibility needs a comprehensive set of policies, programmes and practices in place and all these being integrated throughout business operations and decision making processes. 4.10: Limitations of the Study: 1. The research study covers the innovative HR practices in selected eight HR functions i.e. Recruitment and Selection, Employee Compensation, Employee Motivation, Employee Attrition and Retention, Employee Learning and Development, Quality of Work Life, Employee Job Satisfaction and Corporate Social Responsibility only. 2. This research study is limited to eight automobile sector passenger car manufacturing multinational companies only. 3. The geographical area selected for the study encompasses the multinational companies in Pune district of Maharashtra, which is one of the largest districts in the country. Therefore, personal visit to these organizations (for the survey) was time consuming. 4. The research study outcomes are based upon the information s collected from the select organizations only. 5. Due to high work pressures it was difficult for the company official s to spare sufficient time to the survey, thus researcher had to gather the relevant information s. This may have affected the final outcome of the study. 59

11 4.11: Conclusion: The research methodology adopted for the study is aimed at fulfilling the objectives of the study viz. to study the automotive industry visa-vis the innovations implemented in the HRM practices, the challenges faced by HR managers in the industry, to find the differences in HRM as practiced by the automotive MNC s and the measures adopted to overcome the challenges by this industry. This study has set out two hypotheses i) The innovative HR practices implemented differ significantly among the automobile multinational companies and ii) Strategies used for employee retention are different in different automobile sector multinational companies. The researcher has adopted the survey method to collect the data i.e. both the primary as well as the secondary sources of data has been utilized. The data thus collected has been processed on a personal computer using various statistical tools and methods. The purposive quota sampling method is adopted for sample selection. The sample comprises of executive level managers of all the eight organizations of the Pune region. Therefore 20% of the total population i.e. 168 executive level managers of select automobile multinational companies were selected as respondents for the survey. The scope of the study includes all the HR functions like recruitment, selection, compensation, motivation, attrition, retention, learning, development, quality of work life and corporate social responsibility. The subsequent chapter is Data Analysis and Hypothesis Testing, which analyses the collected data and tests the hypothesis by using relevant statistical tools. 60