MANUFACTURING & BANKING SECTOR IN INDIA

A Comparison between the Manufacturing and Banking Sector in India

A Comparison between the Manufacturing and Banking Sector in India

CHAPTER 1: INTRODUCTION

This chapter will discuss the main topic of the research. It is important to discuss about the topic and to ensure that both the sectors i.e. manufacturing and banking is explored in India in a manner that will focus on the HR practices and its impact on both these sectors in the country.

Background

Human resource management practices may be viewed as supervisory practices. However, the review of the literature revealed a broader and more contemporary definition of HRM practices that focuses on the constructs of inclusion of the human elements for the efficient operation of the organization. Consequently, according to the operational definition human resource is to identify those factors that influence the relation between managers and subordinates within an organization. HRM practices are the activities and tasks that a supervisor or manager engages in to manage and support the activities of the organization's most valuable resource i.e. human beings. Thus, human resource management practices are the functions in an organization that focus on the management of people. They are practices and activities supervisors and managers utilize to support, develop, and guide employees.

Ross (1981) defined human resource management as a comprehensive approach to managing people that goes beyond the traditional personnel functions. She argued that HRM has two objectives: the motivation and development of employees to affect organizational performance.

The effective management of people within the organization is important to the organization's efficiency and effectiveness. Boyne (2003) argued that the improvement in the banking depends on better management, including a focus on leadership and human resource management (HRM) practices. He maintained the focus on regulations and organizational structure limits the progress of today's public organizations. HRM consists of all the tasks involved in ensuring the effective and efficient use of the people inside the organization to meet an organization's goals and objectives. The process of effective management of people means cultivating effective work environments, fostering employee participation and contribution to the organization's success.

An organization's need for effective teams has led to significant advancements in research for enhancing team performance. Researchers now concur that effective organizational teams provide a directed and collaborative effort when addressing organizational tasks. However, organizational teams are often not inherent in competitive workplace environments; lack of acceptance often causes the team to fail, even if forming the team is perfectly logical and necessary. Research suggests organizations that are developing teams must recognize critical team characteristics in order to utilize a more comprehensive framework to capitalize on their teams' capacity for change.

In this context, the team design fundamentals advocated in lean manufacturing advance intellectual seeking behaviors that may encourage team members to look at traditional problems in new ways by seeking different perspectives from other team members. The principles of lean manufacturing are specifically designed to develop autonomous work teams integrated from all functional areas across an organization that is engaged in continuous improvement ...