Hu­man Re­source De­vel­op­ment in Tile In­dus­try in In­dia-A strat­egy for Em­ployee Re­ten­tion

- Hardeep

Economic Challenger - - NEWS - * Hardeep Re­search Scholar, Com­merce Depart­ment, M.D. Univer­sity, Ro­htak, Cell: +91 9416058880 email: hard­eep­nar­

Ce­ramic In­dus­try in In­dia is about 100 years old. It com­prises ce­ramic tiles, san­i­tary ware and crock­ery items. Ce­ramic prod­ucts are man­u­fac­tured both in the large and small-scale sec­tor. In­dia ranks 5th in the world in terms of pro­duc­tion of ce­ramic tiles and pro­duced 600 mil­lion sq. me­ters of ce­ramic tiles, out of a global pro­duc­tion of 6900 mil­lion sq. me­ters dur­ing FY 2012. State-of-the-art ce­ramic goods are be­ing man­u­fac­tured in the coun­try and the tech­nol­ogy adopted by the or­gan­ised sec­tor within In­dian ce­ramic In­dus­try is of in­ter­na­tional stan­dard. How­ever, as the com­pe­ti­tion is in­creas­ing, not only in In­dian tile com­pa­nies, but also with For­eign com­pa­nies, it is nec­seeery to pay spe­cial at­ten­tion to hu­man el­e­ment in the or­ga­ni­za­tion. Hu­man re­source de­vel­op­ment plays an im­por­tant role in in­dus­try growth with im­proved qual­ity and quan­tity of pro­duc­tion and re­duc­ing the cost.

Hu­man Re­source De­vel­op­ment is the in­te­grated use of train­ing, or­ga­ni­za­tion, and ca­reer de­vel­op­ment ef­forts to im­prove in­di­vid­ual, group and or­ga­ni­za­tional ef­fec­tive­ness. HRD de­vel­ops the key com­pe­ten­cies that en­able in­di­vid­u­als in or­ga­ni­za­tions to per­form cur­rent and fu­ture jobs through planned learn­ing ac­tiv­i­ties. Groups within or­ga­ni­za­tions use HRD to ini­ti­ate and man­age change. Also, HRD en­sures a match be­tween in­di­vid­ual and or­ga­ni­za­tional needs.


Ce­ramic Tiles to­day have be­come an in­te­gral part of home im­prove­ment. It can make a huge dif­fer­ence to the way your in­te­ri­ors and out­doors look and ex­press. The In­dian tile in­dus­try, de­spite an over­all slow­down of the econ­omy con­tin­ues to grow at a healthy 15% per an­num. In­vest­ments in the last 5 years have ag­gre­gated over Rs. 5000 crores. The over­all size of the In­dian ce­ramic tile in­dus­try is ap­prox­i­mately Rs 18,000 crore (FY12). The pro­duc­tion dur­ing 2011-12 stood at ap­prox. 600 mil­lion square me­ters.

The In­dian tile in­dus­try is di­vided into or­ga­nized and un­or­ga­nized sec­tor. The or­ga­nized sec­tor com­prises of ap­prox­i­mately 14 play­ers. The cur­rent size of the or­ga­nized sec­tor is about Rs 7,200 crores. The un­or­ga­nized sec­tor ac­counts for nearly 60% of the to­tal in­dus­try bear­ing tes­ti­mony of the growth po­ten­tial of this sec­tor.

In­dia ranks in the top 3 list of coun­tries in terms of tile pro­duc­tion in the world. With proper plan­ning and bet­ter qual­ity con­trol our ex­ports ( presently in­signif­i­cant) con­tri­bu­tion can sig­nif­i­cantly in­crease


HRD is a process in which the em­ploy­ees of an or­gan­i­sa­tion are con­tin­u­ally helped in a planned way;

1. Ac­quire or sharpen ca­pa­bil­i­ties re­quired to per­form var­i­ous func­tions as­so­ci­ated with their present or ex­pected fu­ture roles. 2. To de­velop their gen­eral ca­pa­bil­i­ties so that they may be able to dis­cover their own in­ner po­ten­tial­i­ties and ex­ploit them fullest for their own and or­gan­i­sa­tional de­vel­op­ment pur­pose. 3. To de­velop an or­gan­i­sa­tional cul­ture where su­pe­rior - sub­or­di­nate re­la­tion­ship, team work, col­lab­o­ra­tion among dif­fer­ent sub­units con­trib­ute to or­gan­i­sa­tional wealth and mo­ti­va­tion and pride of the em­ploy­ees

The at­trac­tion, re­ten­tion and per­for­mance man­age­ment of peo­ple have been fo­cus area for re­ori­ent­ing hu­man re­source sys­tem in tiles in­dus­try. Hu­man re­source poli­cies re­lated to:

HRP, Re­cruit­ment and Se­lec­tion:

The hu­man re­sources plan­ning in­volves all the steps of plan­ning i.e. an­tic­i­pat­ing, look­ing at present avail­able hu­man re­sources, fore­cast­ing of hu­man re­sources, and plan­ning for fu­ture re­quire­ments on the ba­sis of busi­ness plans of the or­ga­ni­za­tion. This is im­por­tant for mak­ing ar­range­ments of man­power as and when needed as per the re­quired qual­ity in terms of qual­i­fi­ca­tion, ex­pe­ri­ence, com­pe­tency etc.

Prob­a­bly the most im­por­tant el­e­ment in any hu­man re­source de­vel­op­ment sys­tem is re­cruit­ment and se­lec­tion. Find­ing and hir­ing the right peo­ple is absolutely crit­i­cal to the suc­cess or fail­ure of any or­ga­ni­za­tion.

A key el­e­ment in Hu­man Re­source Plan­ning is not only of at­tract­ing but also of re­tain­ing em­ploy­ees. Peo­ple have to want to work for the or­ga­ni­za­tion and be able to cre­ate an en­vi­ron­ment where peo­ple want to come to work and give their best.


Tiles or­ga­ni­za­tion sees train­ing and de­vel­op­ment as the key to re­main­ing com­pet­i­tive and pro­vid­ing qual­ity pro­grams and ser­vices to the peo­ple they serve. Th­ese “learn­ing or­ga­ni­za­tions” view train­ing and de­vel­op­ment as an in­te­gral part of their strate­gic plan. In this in­for­ma­tion age, a well trained and well qual­i­fied work­force is es­sen­tial to de­liv­er­ing qual­ity pro­grams and ser­vices.

Per­for­mance ap­praisal:

Per­for­mance ap­praisal has been con­sid­ered as a most sig­nif­i­cant and in­dis­pens­able tool for Tiles or­ga­ni­za­tion, for the in­for­ma­tion it pro­vides is highly use­ful in mak­ing de­ci­sions re­gard­ing var­i­ous per­son­nel as­pects such as pro­mo­tion and merit in­creases. Per­for­mance mea­sures also link in­for­ma­tion gath­er­ing and de­ci­sion–mak­ing pro­cesses which pro­vide a ba­sis for judg­ing the ef­fec­tive­ness and per­son­nel sub–di­vi­sion such as re­cruit­ing, se­lect­ing, train­ing and com­pen­sa­tion and help de­ci­sion re­gard­ing over­all qual­ity of firms' ac­tiv­i­ties and prod­ucts man­age­ment of most of the tiles plant in In­dia. Ac­cu­rate in­for­ma­tion plays a vi­tal role in the or­ga­ni­za­tion as a whole.

Re­wards and mo­ti­va­tion:

It is nec­es­sary for peo­ple to get re­ward be­cause it is pay­ment of their work. There are two types of re­wards- in­trin­sic and ex­trin­sic. In­trin­sic re­ward comes from the job it­self such as feel­ing of pride, achieve­ment and sat­is­fac­tion etc. Ex­trin­sic re­wards come from a source out­side the job. Th­ese in­clude pay, pro­mo­tions and other ben­e­fits of­fered by man­age­ment, which are linked to per­for­mance and to mo­ti­va­tion for high achieve­ment

In tile in­dus­try man­age­ment tries to ful­fil the same for mo­ti­vat­ing the em­ploy­ees

Em­ployee Wel­fare:

The work­ing en­vi­ron­ment in a fac­tory ad­versely af­fects the health of the em­ploy­ees. This has to be con­tained through preven­tive steps aimed at im­prov­ing the lot of work­ers. Ef­forts must be done to make life worth liv­ing for em­ploy­ees in tiles units. It in­cludes var­i­ous ser­vices, fa­cil­i­ties amd ben­e­fits of­fered to

em­ploy­ees by the em­ploy­ers, unions and the govern­ment.

An im­por­tant rea­son in favour of wel­fare work is called the "so­cial in­va­sion of the fac­tory”. Work­ers face lots of ad­just­ment prob­lems when they take up fac­tory work. Th­ese changes call for ex­tra in­duce­ments in the work­place in ad­di­tion to nor­mal wages, so that the worker be­gins to en­joy a fuller and richer life.

HRD NEEDS IN THE IN­DUS­TRY Skilled tech­ni­cal man­power re­quired by tile plants

Ce­ramic tiles as a prod­uct seg­ment has grown to a size­able chunk to­day at ap­prox­i­mately 680 mil­lions square me­ters pro­duc­tion per an­num. How­ever, the po­ten­tial seems to be great, par­tic­u­larly as the hous­ing sec­tor, re­tail, IT & BPO sec­tors have been wit­ness­ing an un­prece­dented boom in re­cent times. So skilled tech­ni­cal man­power re­quired by the in­dus­try is the key driver for the ce­ramic tiles in In­dia as there is a boom in hous­ing sec­tor cou­pled by govern­ment poli­cies fu­elling strong growth in hous­ing sec­tor. The re­tail boom in the In­dian econ­omy has also in­flu­enced the de­mand for high end prod­ucts. Over­all the bullish growth es­ti­mates in the In­dian econ­omy has sig­nif­i­cantly in­flu­enced the growth of the In­dian Ce­ramic tile in­dus­try. Both, tra­di­tional meth­ods of man­u­fac­tur­ing (tun­nel) and the lat­est sin­gle fast fir­ing meth­ods are de­ployed in man­u­fac­tur­ing. Some of the lat­est trends in man­u­fac­tur­ing meth­ods can be seen in In­dia.

The in­dus­try also en­joys the unique dis­tinc­tion of be­ing highly in­dige­nous with an abun­dance of raw ma­te­ri­als, tech­ni­cal skills, in­fras­truc­tural fa­cil­i­ties de­spite be­ing fairly cap­i­tal in­ten­sive. A to­tal of over 5, 50,000 peo­ple are em­ployed in the sec­tor. Out of this, 50,000 peo­ple are di­rectly em­ployed and 5, 00,000 are in­di­rectly as­so­ci­ated.

Train­ing needs in tile plants

Tile plants need train­ing at all lev­els i.e.; worker lev­els and man­age­rial level at all times to up­date the em­ploy­ees with the time and tech­nol­ogy. The ex­port level of In­dian tile in­dus­try is very low due to stan­dards or qual­ity of prod­uct is not of that level which is be­ing pro­vided by other ex­porter coun­tries so far. To get that level of qual­ity bet­ter the in­dus­try needs trained staff. The In­dian In­dus­try has de­vel­oped an ex­port mar­ket al­though at the lower end. In vol­ume it con­sti­tutes less than half a per­cent of the global mar­ket. (Presently In­dia does not fig­ure in the list of ma­jor ex­port­ing coun­tries). But this re­al­ity could change as In­dian ex­ports are ris­ing at an ac­cel­er­at­ing growth an­nu­ally. The top-end of the global ex­port mar­ket is presently dom­i­nated by China (36.8%) and Italy (15.1%)


1. Pre­pare a plan for man­power re­quire­ment for five year and de­velop the source of re­cruit­ment. 2. Pro­vide so­cial se­cu­rity to em­ploy­ees. 3. Pre­pare a train­ing cal­en­dar ev­ery year and en­sure that ev­ery em­ployee un­der­goes train­ing at least once in two years. 4. Pro­vide good re­wards to em­ploy­ees for mo­ti­va­tion 5. A pos­i­tive and open at­ti­tude of the man­age­ment and trade unions to­wards each other needs to be de­vel­oped. 6. Pro­vide non fi­nan­cial mo­ti­va­tions like job en­rich­ment, ad­vance­ment in or­gan­i­sa­tion, ap­pre­ci­a­tion of work done etc.


A feel­ing of mu­tual re­spect and trust be­tween man­age­ment and em­ploy­ees and trans­parency in op­er­a­tions would go a long way in de­vel­op­ing em­ploy­ees and in­dus­try. That is very nec­es­sary for the tile in­dus­try be­cause it works like a foun­da­tion stone. Thus the man­age­ment of hu­man re­source in tile in­dus­try has never been more im­por­tant than it is to­day. Peo­ple there with skills, at­ti­tudes, be­liefs and

philoso­phies have be­come the cen­trifu­gal force in tile or­ga­ni­za­tions. To­day HRD is in­ti­mately in­ter­twined with busi­ness suc­cess and strat­egy. HRD has be­come a cul­ture of higher pro­duc­tiv­ity and in­dus­trial process in tile in­dus­try. There­fore, man­agers are mak­ing at­tempts to use HRD strate­gies in tile in­dus­try for growth in the mar­ket. With the help of HRD em­ployee re­ten­tion. How­ever, many con­sider em­ployee re­ten­tion as re­lat­ing to the ef­forts by which em­ploy­ers at­tempt to re­tain em­ploy­ees in their work­force. In this sense, re­ten­tion be­comes the strat­egy rather than the out­come.


1. In­dian Coun­cil of Ce­ramic Tiles & San­i­tary­ware Web­site: www.ic­c­

2. Pre­sen­ta­tion made at Ceramitec 2006 by Mr. Vi­jay Ag­gar­wal, Man­ag­ing Di­rec­tor,

3. H&R John­son In­dia Limited. Ce­ram­ics In­dus­try in In­dia: A Trade Per­spec­tive news­let­­let­ters 4. EX­PORT-IM­PORT BANK OF IN­DIA Visit us at www.ex­im­bankin­

5. Hrd in ce­ment in­dus­try: A Way To­wards com­pet­i­tive ad­van­tage Jour­nal eco­nomic chal­lenger

6. Karol, S.H., (1996). The In­flu­ence of Plan­ning Ac­tiv­ity on Em­ployee Per­for­mance Re­view. Un­pub­lished Dis­ser­ta­tion, Evanston, IL.

7. Zedeck S., and Cas­cio. W. F. Per­for­mance Ap­praisal De­ci­sions As A Func­tion of Rater Train­ing and Pur­pose of Ap­praisal. Jour­nal Of Ap­plied Psy­chol­ogy, 67, 752-758

8. Hrm text and case , K Aswathappa fifth edi­tion

9. Hrm Agar­wal N.P./ Tai­lor R.K.

10. Rao, T V (1999). HRD Au­dit, New Delhi: Re­sponse Books (A Di­vi­sion of Sage Pub­li­ca­tions). 11. Cor­po­rate Cat­a­lyst In­dia, AS­CER & Ce­ramic Work Re­view.

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