Skill based framework for achieving productivity enhancement with respect to SMEs in Manufacturing sector at Peenya Industrial Area

Abstract

Today, the world is leaning towards the industries which are technologically advanced and newlinehave highly skilled workforce. Protection against unemployment and opportunity for higher newlineearnings for employees at one side and achieving competitiveness and performance excellence newlinefor employers can be achieved with skill strategy. As India evolves to become a manufacturing newlinehub, the sector grew at the rate of 7.7 percent in 2017. SMEs contribute nearly 45 percent to newlinemanufacturing and about 40 percent to the Indian export sector. SMEs are proving to be one of newlinethe upcoming sectors of developing India where technological innovation in SMEs has become newlinea dynamic process. For any labor-intensive SMEs, experienced and efficient skilled operators newlineare considered as a valuable asset. For more effective and efficient operation of manufacturing newlineequipment, greater should be the existence of skilled workforce to operate the machines. newline newlineUnlike Large scale industries, who have instituted their own in-house training programs, newlineMedium and Small-scale industries are confronted with the barrier of investment, poor newlineinfrastructure, lack of skilled manpower etc. Hence, there is a need to have training programs newlineto train the people in order to combat shortage of skilled labor. Also, it has become imperative newlineto take a note on current technology available in various manufacturing enterprises that impacts newlineon the organizational development in terms of its productivity, profitability, market value, newlinecustomer satisfaction per se. newline newlineThe present research can be considered as a tool to identify the challenges in the path of skill newlinedevelopment and arrive at an effective Skill-based framework that drives towards the newlineperformance excellence of manufacturing industries. Skill development initiatives undertaken newlineby enterprises can be raised to next level through determining the skill-based framework at newlineoperators levels. The research of skill-based framework mainly includes perceptions of newlineemployers towards existing sector specific Technology, Training and Skill Development newlineStrategy. The employee productivity sector specific skill set is used an intervening variable newlinebetween predictor and criterion variable. newline newlineThe purpose of the research is to evaluate the perceptions of employers and operators with newlineregard to current sector specific technology, training and skill development strategy adopted newlineby the enterprises over the productivity and performance of operators. The study intends to newline newlineii newline newlineknow the impact or variance generated by the independent variables on the productivity of the newlineenterprise. newline newlineThe present research is a perceptual quantitative study and is based on empirical data. The newlineresearch study is carried at three different manufacturing sectors viz: Precision Component newlineManufacturers, Electronics and Electrical OEM sectors. Samples are selected using random newlinesampling from Small and Medium scale enterprises of Peenya Industrial Area, Bangalore. newlinePeenya Industrial Area is considered as a hub of SMEs and the largest and oldest Industrial newlinecluster in South Asia. Data is collected using two structured questionnaires one for enterprise newlineand other for operators from each sector. Data analysis and interpretation is done separately for newlineeach sector using both descriptive and inferential statistics. newline newlineThe study recommends few solutions to all stakeholders so that they become more vibrant and newlineable to make perforated efforts to overcome skills shortage in future. The study tries to evaluate newlinethe views and perceptions of an operator towards the importance and knowledge of skills newlinerequired for current job and towards the skill development initiatives undertaken by the newlineenterprise. The study aims to identify sector specific types of training adopted by the enterprises newlineat three different sectors of manufacturing industries. The importance of the study lies with fact newlinethat many organizations in today s world are making constant efforts to attain competitive edge newlinewhich is hard to achieve without focusing on employees capabilities, skills etc., and raising it newlinenext level through adequate training, backed by technology and skill development strategies of newlinespecific sectors. newline newlineThe study results will help the employers to identify the gap, challenges, along with the effects newlineof skill-based framework on the organizational performance which in turn may help in newlinedetermining the areas where improvements can be done. This will help the management in newlineplanning or developing an effective and efficient framework that will lead for the enhancement newlineof productivity. The findings of the study will set platform for theoretical framework for further newlineresearch work in other sectors of manufacturing industries. newline