Importance of HRD in Small Scale Industries

1. Importance of HRD in Small Scale Industries Submitted by Ajay Pratap Singh Kanwar Submitted to Mrs.Basumam

2. INTRODUCTION India with 300 million people still living Under powerty line, needs to up lift the status of these people. The Indian small scale sector has been instrumental in generation of employment opportunities to the local and less educated strata of the society, particularly the poor. It has created new oppurtunities and paved way for their empowerment through self employment and entrepreneurship. Small and medium entreprises are treated as the engine of growth in most of the developiug countries like India.

3. Since the time of independence, the small-scale sector in India has been a major contributor to country’s Gross Domestic Product (GDP). This traditional sector in India is considered to have huge growth prospect with its wide range of products. With 40 percent share in total industrial output and 35 percent share in exports, the small-scale industrial sector in India is acting as Engine of Growth in the new milenium. With the advantage associated with small scale industries focus has to be made on its HRD aspect .

4. SMALL SCALE INDUSTRIES The definition for small-scale industrial undertakings has changed over time. Initially they were classified into two categories-those using power with less than 50 employees and those not using power with the employee strength being more than 50 but less than 100. However the capital resources invested on plant and machinery buildings have been the primary criteria to differentiate the small-scale industries from the large and medium scale industries. An industrial unit can be categorized as a small- scale unit if it fulfils the capital investment limit fixed by the Government of India for the small-scale sector.

5. The traditional small-scale industries clearly differ from their modern counterparts in many respects. The traditional units are highly labor consuming with their age-old machineries and conventional techniques of production resulting in poor productivity rate whereas the modern small-scale units are much more productive with less manpower and more sophisticated equipments. Khadi and handloom, sericulture, handicrafts, village industries, coir, Bell metal are some of the traditional small-scale industries in India. The modern small industries offer a wide range of products starting from simple items like hosiery products, garments, leather products, fishing hook etc to more sophisticated items like television sets, electronics control system, various engineering products especially as ancillaries to large industrial undertakings.

6. NowadaysIndian small-scale industries (SSIs) are mostly modern small-scale industries. Modernization has widened the list of products offered by this industry. The items manufactured in modern Small-scale service & Business enterprises in India now include rubber products, plastic products, chemical products, glass and ceramics, mechanical engineering items, hardware, electrical items, transport equipment, electronic components and equipments, automobile parts, bicycle parts, instruments, sports goods, stationery items and clocks and watches. Since independence the Government of India has nurtured this sector with special care with the following aims: - To develop this sector as a major source of employment To encourage decentralized industrial expansion To ensure equitable distribution of income. To mobilize capital investment and entrepreneurship skills.

7. HUMAN RESOURCE DEVELOPMENT The concept of of HRD was formerly introduced by Leonard Nadler in 1969 in a conference organised by the American Society for Training and Development . He defined HRD as “those learning experiences which are organised for a specific time and designed to bring about the possibility of behavioural change” An applied field, HRD focuses on solving individual and organizational performance problems. Whether the organization is for-profit or non-profit, a school or a family, the central processes of human relating and learning are applied to elevate performance. More precisely, HRD is systematic interventions designed to teach, empower and free individuals to relate constructively and think productively for organizational and social benefit.

8. The goals of HRD are: • to develop new sources of capital that can be leveraged to enhance organizational productivity, including the sources of potential competitive advantage of human capital, information capital, organizational capital and marketplace capital; • to help individuals, groups and organizations anticipate, adapt to and create change; to enhance the quality of life for individuals. • HRD enables the individual and the organization to generate maximum outputs while investing a minimum of finite resources. • As finite resources become scarcer and changes in the environmental requirements and conditions accelerate, HRD strategies and skills will belong in the repertoire of every person in every type of workplace. This can be seen in the variety of jobs in which HRD graduates are applying their skills.

9. HRD AND SSI Human resource unlike most other resources is volatile therefore there is need of very high degree of skill and sensitivity to handle this volatile substance. Such a skill development can be achieved by having sound knowledge of human behavior, conceptualizing the broad objectives and issues, ultimately it results in development of workforce in proper direction and manner. Cordial human relationship is equally important for large, medium or small scale industries. The productive capacities of individuals can be tapped by proper motivation of the employees, healthy interpersonal relationship, training and competent leadership. the success of an organization largely depends upon efficient and competent personnel which

10. could be possible by efficient training and periodical review of the expectations, problems of the personnels and providing them appropriate environment to work. Training attitude and practice is neccesary to improve employees performance but hardly any ssi provide trainig facilities in practice . NISIET(national institute of small industry extention training) provides entrepreneurship development related training programmes, training research and consultancy, including the methodology of cluster development. For small scale industry loss of employee could be devastating therefore for building loyal, efficient, and commited workforce ssi owners have to pay attention to hiring, training and employee development activities and undertake systematic human resource management practices on a long term basis.

11. To develop competencies in individual, groups and collectives. Developing competencies is a never-ending process because competency development is the driver of development for any industry, and it has become essential after the government initiative to make small and medium enterprises go global. SSI are labour intensive production process therefore concept of work teams, suitable reward schemes, there assigning right job to an individual becomes necessary that could be evidently be applied to these industries by using techniques of HRD such as potential appraisal and employee development With globalization, all forms of production of goods and services are getting increasingly fragmented across countries and enterprises. The SME sector can become globally competitive, if these are able to make use of the HRD concepts, like developing managerial skills in workers, identifying potential workers for future prospects to develop mutiskilled human resource

12. Various institutional support facilities provided to the SME sector • The Small Industries Development Organisation (SIDO) • National InstituteFor Entreprenurship and Small Business Development (NIESBUD) • National Institute Of Small Industry Extention(NISIET)

13. THANK YOU

14. Advantages associated with Small Scale Industries • This industry is especially specialized in the production of consumer commodities. • Small scale industries can be characterized with the special feature of adopting the labour intensive approach for commodity production. As these industries lack capital, so they utilize the labour power for the production of goods. The main advantage of such a process lies in the absorption of the surplus amount of labour in the economy who were not being absorbed by the large and capital intensive industries. This, in turn, helps the system in scaling down the extent of unemployment as well as poverty. • It has been empirically proved all over the world that Small Scale Industries are adept in distributing national income in more efficient and equitable manner among the various participants in the process of good production than their medium or larger counterparts.

15. Small Scale Industries help the economy in promoting balanced development of industries across all the regions of the economy. • This industry helps the various sections of the society to hone their skills required for entrepreneurship. • Small Scale Industries act as an essential medium for the efficient utilization of the skills as well as resources available locally. • Small Scale Industries enjoy a lot of help and encouragement from the government through protecting these industries from the direct competition of the large scale ones, provision of subsidies in the form of capital, lenient tax structure for this industry and many more.