CHAPTER 1

Introduction, Significance of the Topic, Objective of the Study, Methodology Used, Concepts Used.

1.1 INTRODUCTION Brief Historical & Theoretical Background:

Despite a growing interest of competency among mangers and human resource professionals in recent years, the modern competency movement in industrial-organizational psychology actually dates from the mid 1950s and early 1970s. In that regard, John Flanagans work (1954) and Dave McClellands studies (1970) might be cited as two landmark efforts that originally invented the concept of competency. Over the past 10 years, human resource and organizational development professionals have generated a lot of interest in the notion of competencies as a key element and measure of human performance. * Defining the factors for success in jobs (i.e., work) and work roles within the organization * Assessing the current performance and future development needs of persons roles * * Mapping Assigning succession possibilities grades for and employees levels to within particular the jobs organization and roles

compensation

* Selecting applicants for open positions, using competency-based interviewing techniques.

Competencies include the collection of success factors necessary for achieving important results in a specific job or work role in a particular organization. Success factors are combinations of knowledge, skills, and attributes (more historically called "KSA's") that are described in terms of specific behaviors, and are demonstrated by superior performers in those jobs or work roles. Attributes include: personal characteristics, traits, motives, values or ways of thinking that impact an individual's behavior.

Concepts of Competency:
Competency is the vital behavioral skills, knowledge and personal attributes that are translations of organizational capabilities and are deemed essential for success. They distinguish exemplary performers from adequate performers. In that regard, competencies offer a highly descriptive means of discussing job performance. They go beyond traditional job descriptions because they focus on how employees perform their jobs, not simply on what they do. While job descriptions detail specific tasks, competencies encompass the tangible and intangible abilities employees possess. For

instance, a necessary competency for a marketing professional might be the ability to perform detailed market analysis while another competency might be leadership qualities, as evidenced through the ability to build consensus.

Definitions:
Competency- The word competency is derived from Latin word "Competere" which means 'to be suitable'. The competency concept was originally developed in Psychology denoting individuals' ability to respond to demand placed on them by their environment. A Competency is an underlying characteristic of a person which enables him/ her to deliver superior performance in given job, role or a situation. Competencies are seen mainly as inputs. They consist of clusters of knowledge, attitudes and skills that affect an individuals ability to perform. Competency Mapping- Competency mapping is a process through which one assesses and determines one's strengths as an individual worker and in some cases, as part of an organization. It generally examines two areas: emotional intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure, leadership, and decisionmaking. Large organizations frequently employ some form of competency mapping to understand how to most effectively employ the competencies of strengths of workers. They may also use competency mapping to analyze the combination of strengths in different workers to produce the most effective teams and the highest quality work.

The steps involved in competency mapping with an end result of job evaluation include the following: 1) Conduct a job analysis by asking incumbents to complete a position information questionnaire (PIQ). This can be provided for incumbents to complete, or we can conduct one-on-one interviews using the PIQ as a guide. The primary goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs. 2) Using the results of the job analysis, we are ready to develop a competency based job description. A sample of a competency based job description generated from the PIQ may be analyzed. This can be developed after carefully analyzing the input from the represented group of incumbents and converting it to standard competencies. 3) With a competency based job description, we are on our way to begin mapping the competencies throughout our human resources processes. The competencies of the respective job description become our factors for assessment on the performance evaluation. Using competencies will help guide us to perform more objective evaluations based on displayed or not displayed behaviors. 4) Taking the competency mapping one step further, we can use the results of our evaluation to identify in what competencies individuals need additional development or training. This will help us focus our training needs on the goals of the position and company and help our employees develop toward the ultimate success of the organization.

Components of Competency:
There are four major components of competency: 1. Skill: capabilities acquired through practice. It can be a financial skill such as budgeting, or a verbal skill such as making a presentation. 2. Knowledge: understanding acquired through learning. This refers to a body of information relevant to job performance. It is what people have to know to be able to perform a job, such as knowledge of policies and procedures for a recruitment process. 3. Personal attributes: inherent characteristics which are brought to the job, representing the essential foundation upon which knowledge and skill can be developed.
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4. Behavior: The observable demonstration of some competency, skill, knowledge and personal attributes. It is an essentially definitive expression of a competency in that it is a set of action that, presumably, can be observed, taught, learned, and measured. Based on the above definition, it can be said competency only include behaviors that demonstrate excellent performance. Therefore, they do not include knowledge per se, but do include applied knowledge or the behavioral application of knowledge that produces success. In addition, competencies do include skills, but only the manifestation of skills that produce success. Finally, competencies are not personal work motives, but do include observable behaviors related to motives. See figure below for an illustration of these key points.

Types of Competencies:
There are four types of competencies: 1. Employee Core Competency Competency that relate to organizations values, mission and strategy; these are competencies that reflect organizational core capabilities and should be possessed by all employees regardless of their function. Example: Customer satisfaction; quality orientation 2. Managerial Competency

Competencies that relate to skills needed to perform managerial work and process; it deals with the interaction process either with individual or group of people. Typically generic in nature, these competencies are common skills sets required by most companies; are not necessarily industry specific, and are not confined to managerial positions. In typical organizations, managerial competencies will play greater emphasis as the position progresses within the organization.

In general, managerial competency could be divided into two categories: y Human Competency: An ability to work with, understand, and motivate other people as individuals or in group. It relates to the individuals expertise in interacting with others in a way that will enhance the successful completion of the task at hand. Examples: interpersonal skills; developing people.

Conceptual Competency: An ability to understand the degree of complexity in a given situation and to reduce that complexity to a level at which specific courses of action can be derived. Example: problem solving and decision making.

Technical/Functional Competency: Competencies that pertain to specific bodies of knowledge and skills required to perform the defined activities in an industry, function or job. It includes the abilities to use the procedures, techniques and knowledge of a specialized field. Example: sales ability, behavior interview technique.

Personal Attribute: Competencies that relate to inherent personal characteristics (e.g. motives, self image, self concept, etc.) and potentially affect work attitude and performance. Example tolerance for stress; achievement motivation.

Levels of Competency:
y y Practical competency - An employee's demonstrated ability to perform a set of tasks. Foundational competence - An employee's demonstrated understanding of what and why he / she is doing. y Reflexive competence (An employee's ability to integrate actions with the understanding of the action so that he / she learn from those actions and adapts to the changes as and when they are required. y Applied competence - An employee's demonstrated ability to perform a set of tasks with understanding and reflexivity.

Objectives of Competency Mapping:

1. Providing effort towards mapping competencies and implementing assessment and development centers. 2. To design and implement low cost assessment and development centers specially designed to meet the requirements of developing economies. 3. To uncover the gap that exists between the present competency of the enterprise and the competency needed to reach strategic goals in the future.

Importance of Competency Mapping:

1. Companies need a clearly defined organizational structure to function effectively. 2. It is important to have well defined roles in terms of the key performance areas or activities associated with each role. 3. It is useful for companies to map the competencies required for each role. 4. Generic competencies should be identified for each set of roles of levels of management.

Competency mapping ensures various HRM activities

1. Selection system: an interviewer looks for best-fit candidate as per the job profile. 2. Training and development: It provides a list of behavior and skills that must be developed to maintain satisfactory levels of performance. 3. Succession planning: It focuses on the same set of attributes and skills relevant to succeed on the position under consideration. 4. Performance management appraisal system: It focuses on specific behavior offering a roadmap for recognition and reward and possible advancement. Competency mapping can be an effective way of communicating to the workforce the value of the senior management and what people should focus on their behaviour. For e.g. A competency based appraisal system, helps to distinguish individuals with the characteristics that are required to build and maintain an organization, value teamwork, respect for individual innovation or initiative.

1.2 SIGNIFICANCE OF THE STUDY: Globalization and rapid technological change has transformed the manner in which business has been routinely conducted and career paths which are no longer linear and unbroken but are spiral and lateral in nature. With global economy and the world becoming a global village, firms have become more aware of the need for competent employees and developing distinguished competencies for every organization. Thus competency mapping has gained importance these days. Competency mapping ensures that competent employees are available for performing various critical roles. It can be used to focus on the need for time management, nurturing of competence and to increase emphasis on performance management system. It also helps in downsizing and the consequent need to get a lot of things done with fewer people and thus reduce manpower costs and pass on the advantage to the customer. Competency mapping enables the organization to link selection, training and development and compensation to business strategy. It focuses performance management on what is critical for success of the organization and makes recruitment and selection more efficient. The process of competency mapping also helps the organization to understand what constitutes superior performance and also provides a framework for superior performance. It enables to establish measurements that make a difference in performance levels.

1.3 OBJECTIVE OF THE STUDY:

1. To understand and develop competencies. 2. To identify the desired competencies. 3. (Desired competencies- competency needed by employees to perform critical organizational roles.) 4. To identify the list of profiled competencies to create a final competency framework.

5. To analyze the gap between the target and the existing competencies. 6. To identify the employee training needs through competency mapping. 7. To integrate employee training needs with the career development process. 8. To implement a thorough career development process that encourages employee empowerment. 9. To adopt competency based HRM, which integrate HR through competencies. 10. To link organizational issues and HR functions through competency mapping process. 11. To develop competencies model based on competency mapping process. 12. To define roles in terms of the key performance areas or activities associated with each role and to identify generic competencies for each set of roles of levels of management.

LIMITATION OF THE STUDY: 1. Time constraints. 2. Interest of the employee in interacting with the researcher. 3. Uncertainty whether the sample is representative of the universe. 4. Proper analysis has been done without any flaw. 5. Lack of top management commitment.

1.4 METHODOLOGY USED:

Research inculcates scientific and inductive thinking and it promotes the development of logical habits in any organization. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. Thus, when we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by other. The research study will be conducted in order to know the present situation and possible trends by building awareness and participation level regarding the topic selected. The researcher subdivided the study into steps so as to make the research simplified. Step 1: Understanding and formulating the problem. Step 2: Review of literature Step 3: Constructing instrument for data collection Step 4: Selecting a sample Step 5: Data collection Step 6: Tabulation and Analysis of the Data Step 7: Writing the Research Report Step 8: Results and Discussion Step 9: Recommendations and Suggestions

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TYPES OF DATA:
Entire research work was focused on collection of data, interpretation of data, and analysis of data. Therefore the research was carried out by using two types of data: 1. Primary data 2. Secondary data

SOURCES OF PRIMARY DATA:

We collect primary data during the course of doing experiments in an experimental research. This means we can obtain primary data either through observation or through direct communication with respondents in one form or another or through personal interviews. This, in other words, means that there are several methods of collecting primary data, particularly in surveys and descriptive researches. Important ones are: (i) observation method, (ii) interview method, (iii) through questionnaires, (iv) through schedules. 1. Questionnaire method: The main instrument for the collection of primary data is the questionnaire method. The questionnaires are prepared for executives, skilled laborers which will mainly contain questions related to the topic. 2. Informal discussion: Informal discussions will be carried out with executives and

employees across levels in the organization to know their viewpoints or suggestions on the topic. 3. Interview method: The interview method of collecting data involves presentation of oralverbal stimuli and reply in terms of oral-verbal responses. This method can be used through personal interviews.

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DATA COLLECTED:
1. Inputs were received from various divisional heads and team members through discussions in deciding the desired level of competencies. 2. Department wise discussions were held with the head of the departments for listing out the competencies to be applied, in prioritized order.

SOURCES OF SECONDARY DATA:

Secondary data was calculated by reviewing different literatures like company profile/ annual report, books, articles, magazines, journals etc and also through websites and other possible resources.

DATA COLLECTED:
Datas were collected from TBEM(Tata business excellence model) and a reference from the companys web site was taken regarding knowledge of company, knowledge of competency and competencies required to perform the tasks in the organization.

Tool used for data collection:

1. Assessment sheets were circulated among the various heads for rating their immediate subordinates, in the following departments-:  Finance, Excise  PPC, Progress & Spare Parts  Human Resource  Security and Safety  IR, PSD, Security, and Safety  ADD & ICR  NPI, Projects, Contracts, Marketing  Central planning  Materials  Housing, Covering & Shifters forks  Heat Treatment  Gear hard  Assembly
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 QA, SQIG & ERC  Gear Soft  Human Resource  Central Maintenance(Electronics)  Central Maintenance(Mechanical)  Central Maintenance(Electrical)  Central Maintenance(Heat Treatment)  Central Maintenance(Tool Room)  Central Maintenance(Maintenance Planning)  Central Maintenance(MCSP Procurement) 2. Analysis was done on the basis of bar graphs.

1.5 Concepts Used:

Competencies differ according to sectors, industries, departments and roles. Competencies can be generic or specific. Generic which can be applicable at any levels and departments, and specific competencies are specific to the departments and roles as such here both the generic as well as specific are used. Some of the technical competencies are explained below: Knowledge of Statistical Process control- sometimes also called a run chart or cross section. It is used to measure and control wastage and any default. For e.g.. If a nail is to be cut 10 inches in order to fix it into the gear box, we should measure it every time we cut it so that a cut of 11 or 12 inches may not create any default & wastage of the raw material. Knowledge of jigs, tools & fixtures - Tools = are the instruments which are used to carry out mechanical functions like cutting etc. Fixtures = are the instruments which are used to hold the parts or machines. Jigs = are the guide which helps in holding the tools. Knowledge of ABC analysis - In ABC analysis prioritization of the problems is done. Higher level problems are solved on the basis of priorities. Which problem should be given maximum priority amongst all the problems, in order to solve first. Knowledge of industrial engineering - Productivity = output/input Output for example gear, gear boxes. Inputs may be manpower, materials, power. Industrial engineering deals with the
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question of how to improve? Means how to improve the productivity of the industry along with the quality. Knowledge of lean manufacturing - This deals with how to use less resources resulting in more output with less amount of defects. Lean manufacturing leads to: defect prevention, Low inventory levels. Lean manufacturing is also known as one piece flow. Knowledge of Quality Management standard - This standard is used to maintain the standard of the quality of the products/ raw materials/ tools/ equipments being used for the manufacturing process Knowledge of low cost automation - Low cost automation is to make some work automated without spending much of time and cost. It is all about how we make the best utilization of resources provided, which means saving money & time but the work is going on. Knowledge of inspection methodology - Every employee should have the knowledge of the methods used for inspections of the products, whether they are of standard quality or not and of the process in order to avoid defects in the products. Knowledge of shot blasting - In the process of shot blasting we blast a particular product with lead shots. After the blasting process the product becomes very clear and smooth Knowledge of heat treatment - Heat treatment is the process through which carbon gas is infused inside the galvanized steel to make it soft and smooth from inside, so that it can be cut in the desired shape and form. Knowledge of parameter - One should have the knowledge of dealing with the tools. It is all about how fast one should go with his work, how much deep to drill. Knowledge of safety regulation - The employees working in an organization must be aware of the safety rules and regulations being applied in the organization. It must be seen that all the safety rules are being followed by the employees and all the safety equipments like- safety helmets, safety boots, safety goggles etc are provided to all the employees. Some of the behavioural competencies are Tenacity- means continuous improvement and leadership means the leadership qualities shown be the employees at work.
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CHAPTER-2

Company Profile

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HV Transmission Limited (HVTL) is in the business of manufacturing Gearboxes & Gearbox parts for Medium &Heavy Commercial Vehicles. HVTL was spun off from Tata Motors(TML) as a 100% subsidiary and incorporated on 13th march, 2000 to give specialists focus on development and supplies if Gearboxes for TML, while TML concentrated on Vehicle Design, Integration and Marketing. Later, with HVTLs growth potential as a backdrop, Tata Capital took a 15% stake. HVTL operates as a Business to Business (B2B) entity with TML in a Captive market scenario. HVTL is exploring business opportunities with customers other than TML to benchmark itself with the worlds best and benefit from the learning and sharing emanating from such business. HVTL has set up its own Design and Development Center (ERC) where new generations of gearboxes are being designed in joint collaboration with Tata Motors and in partnership with a design house. Learnings from this experience will enable HVTL to design world class products in line with customer requirements for future TML and other potential Original Equipment (OE) Customers. This will also help speedily upgrade products in line with ever changing customer expectations. Culture, Purpose, Vision, Mission and Values.. HVTLs Vision, Mission and Values were first articulated in 2002. Over the years, the company transformed from a loss making enterprise during its early years to a profitable one with consistent growth (even during the recent recession, continued to make profits). With the increased confidence in capabilities and enhanced knowledge of products and requirements, a need was felt to revisit the VMV. The current VMVs are re- articulated in October 2008 through a structured process involving participation of employees. Key stakeholder requirements were taken as inputs. HVTLs philosophy is Growth with Quality and functions in a harmonious IR atmosphere stemming from adoption of the basic tenents of the Tata Groups philosophy of respect for employees and their welfare.

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HVTLs culture is characterized by: y A passion for engineering and innovation among the employees- a major transformation of facilities in the past 3 years has taken place with many innovations: unique high quality-low cost semi-automated assembly line, automated shim selection, conveyorised automated painting, and semi-automated SQF Line and 5-chamber short blasting. y An increasingly seamless work culture and open communication with little or no barriers between functions or organizational levels. This has helped HVTL many successful cross functional projects for product and process improvements. y A learning and collaborative environment. Organizational knowledge gained through execution of many product and process improvements along with solicitation of eternally sourced expertise led to setting up of modern facilities at significantly lower costs and resulted in many processes improvement. y Sensitivity to Safety and Climate Change as an integral part of HVTLs management reviews. y A team based culture to achieve stretch targets on production, cost, quality and other key objectives while enabling HVTL to strengthen its philosophy of Growth with Quality. This culture, while fostering high performance, also HVTLs core competency is Ability To Manufacture Low Lifecycle Cost M&HCV Transmission which dovetails with Tata Motors core competency and going forward, it will also give an edge over its competitors to cater to customers other than Tata Motors. HVTLs ability to continuously drive process and product improvements helps provide appropriate transmissions to Tata Motors and potential customers. This in turn enables it to support TML in its product lifecycle cost improvement. This is consistent with HVTLs mission of delivering value to its customers and shareholders. HVTL is ISO TS-16949:2009 accredited as applicable to automobile companies and also an ISO 14001 / OHSAS 18001: 2007 certified company and conforms to all products, environment, labor and industrial, occupational health & safety requirements. Also, financial regulations, laws and enactments as well as all statutory requirements for smooth and effective functioning of HVTL are complied with. HVTL has adopted Safety, Health, Environment & Climate change policies. HVTL products dovetail with TML vehicle requirements for emission compliance.

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Key Employee segments Senior Management (EGs) Middle Management (TM1 TM5) Supervisors (TM A/B/C) Blue (Permanent)

Education Levels Key Factors That Motivates To Engg Fina Genl. Dip / other Engage In Accomplishing Mission . nce Grad FTA s Grad Prof Challenging Assignments, Growth 12 1
Opportunities, Involvement in Strategic Decision-Making. Specific responsibility for Group / Company Initiatives. Challenging Assignments, 83 Empowerment, Career Progression, Job Rotation, Effective PMS, CFTs Growth Opportunities Coaching and Mentoring, Reward and Recognition

Tota l 13

21

115

23 74

160 117

5 309

188 500

Multiskilling & Growth Opportunities, collar Welfare Policies, Safe & Ergonomic Work Environment

TOTAL Blue collar(Flexible)

Tenure Of Employment In A Year, Opportunity To Become Permanent Employees, Welfare Policies, Safe & Ergonomic Work Environment

95

101

298

317

816

Automobile industry is cyclical, therefore engagement of flexible work force depends on customer demand throughout the year and varies from 300 to 750

Workforce profile
HVTLs has 816 permanent employees. In addition to this, HVTL has access to a captive pool of flexible manpower (750 personnel) who are inducted from time to time, based on volume requirements. A strong performance management system aligns individual employees and functions with HVTLs strategic objectives.Non-core activities like House-Keeping, Security, Civil, Construction, and Structural Jobs in HVTL operations are outsourced through contracts.

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Permanent employees are entitled to key benefits such as subsidized housing and canteen facilities, free medical facilities, interest subsidy on loans, recreation facilities for self and family etc.HVTL is a engineering intensive organization with diverse job roles such as manufacturing, materials, quality assurance, PE & Tools and finance. Requirements emerging from growth aspirations are called for increased job diversity in the areas of R&D, Marketing, HR & Training. Diversity factors such as education and skill characteristics are used to HVTLs advantage to fit the job requirements in terms of competency and skill. Workforce diversity includes bargain able (unionize) and non-bargain able employees belonging to all castes, religion and gender. Special Health & Safety requirements: Apart from a focus on general machine shop safety issues, HVTL has a special focus on hazardous areas such as shot-blasting and painting. Hazards have been identified and reduced in both these areas through commissioning of new assets designed to reduce health risks.

HVTL is organized into 3 manufacturing units in addition to central functions. HVTL possesses all the modern technologies and facilities required for gearbox manufacturing. In line with the philosophy of Growth with Quality, new facilities are strategically acquired to enhanced HVTLs core competency.

Organizational structure and governance system. HVTL is governed by a Board of Directors with Mr. R Pisharody (President, CVBU, Tata Motors) as its Chairman, and representation from its shareholder TML & Tata Capital. The board functions with the support of two committees, namely operations Committee & Audit Committee. HVTLs CEO, Mr. A B Lall (who is also the CEO of HVAxles Ltd.) reports to the board and leads a team of professionals, as depicted in the organization chart. Board Meetings are held on a regular basis to review plans and performance and also to give directions for the future to the management. Operational committee & Audit committee meetings are held to specifically review Operations & Audit issues. CEO is also member of Tata Motors Steering Committee.

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CHAPTER- 3

ANALYSIS & FINDINGS

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