Journal of Management (JOM) Volume 3, Issue 1, June (2016), pp. 13 18, Article ID: JOM_03_01_002 Available online at http://www.iaeme.com/jom/issues.asp?jtype=jom&vtype=3&itype=1 Journal Impact Factor (2016): 2.4352 (Calculated by GISI) www.jifactor.com ISSN Print: 2347-3940 and ISSN Online: 2347-3959 IAEME Publication UNDERSTANDING TECHNICAL APPROACH TO PRODUCTIVITY IN HUMAN RESOURCE PLANNING Dr. Vineet Singh Assistant Professor, Department of Commerce, Guru Ghasidas Vishwavidyalaya, Bilaspur (C.G) ABSTRACT The concept of productivity was originally given by economists like Adam Smith, David Ricardo and J.S Mill as early as in the 18 th century. The Classical economists who originated this concept of productivity had Technocrats like Taylor who gave practical slant to productivity in his task study. He gave the concept of increased productivity not by working harder but by working smarter. Technical effectiveness is measured in terms of productivity and efficiency. Thus, an increase in the number of units produced without the use of additional labour indicates a gain in productivity. In this paper an emphasis is given to evaluate technical approach of productivity as a vital tool of Human Resource Planning and to analyze productivity issues and the impact of technological changes on work or job content. Key words: Productivity, Technical Approach, Human Resource Planning Cite this Article: Dr. Vineet Singh, Understanding Technical Approach To Productivity In Human Resource Planning. Journal of Management, 3(1), 2016, pp. 13 18. http://www.iaeme.com/jom/issues.asp?jtype=jom&vtype=3&itype=1 1. INTRODUCTION Human Resource Planning has always accounted for productivity. There are a number of measures available to evaluate productivity and performance. Sales people are evaluated on the basis of their sales volume in terms of units sold or the amount of revenues earned. Production workers are evaluated on the basis of the company profits or growth rates. Traditionally, productivity was considered as an input-output relational measurement. Each of these measures direct link what employee achieve and the outcome that benefit the organization. At the same time it should be noted that attributing productivity to labour efficiency alone is no longer enviable. We have to analyze productivity issues and the impact of technological changes on work or job content. In this way, results appraisals can directly align employee and organizational goals. Total factor productivity concept gives emphasis on quantification of such http://www.iaeme.com/jom/index.asp 13 editor@iaeme.com
Dr. Vineet Singh abstract inputs and likewise, enables us to measure the overall corporate efficiency more scientifically. 2. OBJECTIVES OF THE PAPER To know Technical Approach to Productivity Understanding the means of enhancing productivity The Productivity benefits of technical change The challenges of knowledge-based economics 3. RESEARCH METHODOLOGY This paper is derived from secondary sources of data, earlier research and exploration of scholars, documents made available by the government, newspaper/magazines as well as journal articles that are related to the subject. This study convoluted present status, problems and prospects of human resource planning as part of the roadmap to employee productivity in Indian public enterprises. 4. INTERPRETATION & ANALYSIS 4.1. Productivity From the organization s point of view productivity is the quantitative relationship between what we produce and the resources we use. The term Productivity can be defined as the output derived from a fixed amount of inputs. In other words, product is getting a higher output over a given input. Organizations can increase productivity either by reducing inputs or by increasing the output of the employees. It is therefore quite possible for managers to cut costs only to find that productivity falls at even a more rapid rate. The concept of productivity was originally given be economist like Adam Smith, David Ricardo and J.S Mill as early as in the 18 th century. The Classical economists who originated this concept of productivity had Technocrats like Taylor who gave practical slant to productivity in his task study. He gave the concept of increased productivity not by working harder but by working smarter. In India, the productivity movement and consciousness gained momentum with the establishment of National Productivity Council (NCP) in 1958. 4.2. Technical Approach to Productivity Technical effectiveness is measured in terms of productivity and efficiency. Thus, an increase in the number of units produced without the use of additional labour indicates a gain in productivity. Productivity measures are objective measures of production line managers to measure productivity at all stages of the production process and to be rewarded for reducing the costs. Organizations use productivity measures such as amount of sales per employee to judge employee productivity. Employee attitude and motivation and a desire to cooperate are also important factors influencing productivity and efficiency. 4.3. Enhancing Productivity Pure cost-cutting efforts such as downsizing, outsourcing and leasing may prove to be disappointing interventions if managers use them, as simple solutions to complex http://www.iaeme.com/jom/index.asp 14 editor@iaeme.com
Understanding Technical Approach To Productivity In Human Resource Planning performance problems. Employee productivity is the result of a combination of employee abilities, motivation and work environment. In sum, this can be given by the equation; Performance= f (ability, motivation, environment) Or, Pref=f(A,M,E) Where; ability includes Recruitment, Selection, Training and Development. Motivation includes Job enrichment, Promotion, Coaching, Rewards and Feedback. On the other hand Environment here means Empowerment, Teams, Leader support and Culture. 4.4. Realizing the Productivity Benefits of Technical Change Technology directly increases the productivity of innovating firms and indirectly raises economy-wide productivity through its diffusion and adoption. As information and communication technologies become pervasive, the potential for economy-wide productivity gains shift from high-tech manufacturing to the overall economy and notably to the expanding service sector. The realization of these potential productivity gains can be helped by policies which either directly encourage technology development and diffusion or seek to remove obstacles to such activities arising from market, policy and systemic failure. They involve regulatory reforms in product and factor markets, policies that allow domestic firms to take advantage of international sources of technology. They also encompass direct policy initiatives providing services to firms aimed at increasing their capacity to absorb new technologies, as well as to engage in collaborative research with other firms. Policies are needed not only to encourage the efficient diffusion of and exploitation of technology but also to encourage innovation and growth in the knowledge base of an economy. This involves initiatives aimed at improving the management of the science base, as well as reforming support schemes of industrial R&D so as to increase their leverage effect on the firms R&D efforts and consequently improve productivity. However such policies will only be fully effective if complemented by measures which help firms improve their performance in terms of non-technological aspects of innovation, e.g. adoption of new organizations structures and upgrading the workforce skills. 5. KNOWLEDGE-BASED ECONOMIES RAISE NEW POLICY CHALLENGES The report Technology, Productivity and job Creation-Best Policy Practices evaluates Innovation and technology diffusion policies, identities best policy practices and makes country specific recommendations. It presents evidence on the extent to which new technologies are transforming the structure of OECD economies and enhancing their ability to grow and create wealth and jobs. Economic activity is becoming increasingly knowledge-based: jobs are shifting from low to high-skilled workers; productivity and employment growth depend on the conditions for economywide diffusion of new products and processes. While aggregate productivity and employment growth remain modest in most countries, those firms that combine technological change, organizational change and up-skilling display strong economic performance. In the era of globalization innovation and production systems of http://www.iaeme.com/jom/index.asp 15 editor@iaeme.com
Dr. Vineet Singh different countries are becoming significantly interdependent to each other; opening up new opportunities with accentuating the need for restructuring and adaptation. Further countries differ in connection to where they stand in the process of structural adjustment as a result of different starting points, institutions, policies, technological and industrial specializations and attitudes to be changed. 5.1. Technology Policy: An Integral Part of the Broader Structural Policy Agenda While a number of countries have undertaken impressive reforms in innovation and technology diffusion policies, present approaches are not sufficiently modified to the characteristics and problems of knowledge-based economies, and the potential contribution of technology to growth and employment remains largely untapped. Technological policies continue to be piecemeal, with inadequate consideration given to linkages within national innovation systems and to the broader structural reform agenda. In order to be successful, they are required to be functioned in a stable macroeconomical environment and complement reforms broadly. 5.2. Wide- ranging Policy Reforms are Demand of the Time Enhancing the Contribution of technology to growth and productivity while putting in place, the conditions to translate its potential into upper incomes and employment does require the implementation of wide-ranging and logical policy reforms. In most OECD countries, current policies in this area focus too much on developing new technologies in the small high-tech part of the manufacturing sector and very slight on nurturing innovation & technology diffusion throughout the economy of the countries. There is scope for growing policy effectiveness through improved use of market linked instruments and improved appraisal efforts. While substantial progress has been made in these areas, much remains to be done. There is a large potential for mutual learning among them member countries from the existing best practices and the experience of past and current reform efforts. 5.3. Improving Conditions for the Creation and Growth of New Technology based Firms This increases their direct job-creating potential, while indirectly contributing to overall economic growth and job creation through superior productivity, greater product variety and lower prices. At the same time there is still scope for dropping regulatory barriers at entry level and encouraging private venture-capital industry, including programs by leveraging private investment. Deterrents to technological entrepreneurship i.e. regulations discoursing spin-offs from universities and large firms and obstacles to risk-taking for example bankruptcy law that excessively penalizes failure must be uninvolved or modified tactfully. 6. REFORMS NEED TO BE MADE POLITICALLY FEASIBLE Achieving consistency and credibility in implementing reforms is the key to best policy practice which requires conquering institutional apathy along with dealing with transition cost and the distribution of incomes and jobs associated with technological change. Factors or success include the extent to which coordination can be achieved between different ministries and the involvement of various stakeholders. Checks must be in force against government failure, such as institutions furthering their own special interests or adopting a partial measure rather than an economy-wide http://www.iaeme.com/jom/index.asp 16 editor@iaeme.com
Understanding Technical Approach To Productivity In Human Resource Planning perspective. Actions to promote skilling and lifelong learning can raise the mobility and employability of workers, mitigate the costs of job displacement resulting from rapid technological change and use resistance to reform. At the same time, policies must be designed so as to avoid determining incentives for work, up-skilling, organizational change and restructuring. 7. RECOMMENDATIONS Based on the problems discussed above associated with human resource planning (HRP) in provoking workers productivity and in order to the possible dealings bring forward, the following recommendations are highly suggested; Business associations should clinch human resource planning as to ensure employees/workers productivity. As to enable enhanced employee productivity, human resources planning in the business institutions must be harmonized with the strategic planning of the organizations. In order to ensure better productivity, business organizations should learn to clinch human resources outsourcing as an inclination in HR management. 8. CONCLUSION Human Resource Planning needs to account for productivity. There are a number of results measures available to evaluate productivity and performance. However, attributing productivity to labour efficiency alone is no longer desirable. We have to analyze productivity issues and the impact of technological changes on work or job content. Total factor productivity concept gives emphasis on quantification of such abstract inputs and likewise, enables us to measure the overall corporate efficiency more scientifically. Technical effectiveness is measured in terms of productivity and efficiency. Thus, an increase in the number of units produced without the use of additional labour indicates a gain in productivity; employee productivity is the result of a combination of employee abilities, motivation and work environment. This involves initiative aimed at improving the management of the science base, as well as reforming support schemes of industrial R&D, so as to increase their leverage effect on firms R&D efforts and consequently improve productivity. REFERENCES [1] Onah, F. O. (2007), Strategic Manpower Planning and Development. Great AP Express Publishers Ltd. [2] Onah, F. O. (2008), Human Resource management 2nd Edition, Enugu: John Jacob s Classic Publishers Ltd. [3] Koontz, H. et al. and Weihrich, H. (1981), Management 7th Edition, Tokyo: McGraw-Hill Book Company. [4] Mathis, R. L. and Jackson, J. H. (1980), Human Resource Management, New York: West Publishing Company. [5] Ubeku, I. O. (1975), Personnel Management in Nigeria. Benin City: Ethiope Publishing Corp. [6] Wildavsky, A. (1972). If Planning is Everything; Maybe It s Nothing Policy Sciences Vol. 4 [7] Argyris, C. Personality and Organisation. Harper and Row, New York (1957). http://www.iaeme.com/jom/index.asp 17 editor@iaeme.com
Dr. Vineet Singh [8] Davis. Keith. Human Behaviour at Work: Dynamics of Organization Behavior. Tata McGraw Hill Publishing Company, New Delhi (1975) [9] Monappa, A. and M.S. Sayaddin. Personnel Management. Tata McGraw Hill Publishing Company, New Delhi (1979). [10] Chakraborthy, S.K. Managerial Effectiveness and Quality of Worklife: Indian Insights. Tata McGraw Hill Publishing Company Ltd, New Delhi (1987) [11] Human Resource Planning and Development, Study material, The Global Open University Nagaland. [12] Dr. Vineet Singh, Significance of Working Capital Turnover Ratio: A Case Study of Bhel and Crompton Greaves. International Journal of Management, 6(3), 2016, pp. 01 07. [13] Dr. Vineet Singh, Indirect Tax Revenue - An Assessment of Central V/S State Government. International Journal of Management, 7(3), 2016, pp. 12 17. [14] 'Technology, productivity, and job creation: best policy practices' 1998. (The OECD jobs strategy) [15] OECD Report, http://www.oecd.org/industry/ind/2759012.pdf http://www.iaeme.com/jom/index.asp 18 editor@iaeme.com