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Skills Gap Analysis: A Case of Faridabad Industries in India*

CASE STUDY, HUMAN RESOURCE MANAGEMENT
ET Cases - GSMC, 12 Pages
AUTHOR(S) : Dr. Lata Bajpai Singh - Associate Professor, Dr. Anita Singh - Professor - Institute of Management Studies, Ghaziabad

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Skills Gap Analysis: A Case of Faridabad Industries in India

 

With more than 50% of the total population below 25 years of age, brings India as one among the young nations in the world. It has been estimated that in India the working age population is going to be far excess than those of the dependents on them for the coming three decades till 2040. It posed various issues and challenges in different segments. One of the challenges would be to provide employment to more number of people with lack of enough job opportunities. To deal with it, better utilization of the demographic strength of the country in terms of working age population has been identified. Now it has been considered a potential source of significant strength to the national economy and thus we need to continuously upgrade the skills among the working age population. For the said purpose the Government of India put skill development on priority for the country in coming years. As per a discussion held at BBC news channel ‘the Government of India started working on skilling more than 400 million Indians with practical skills by 2022.’

As per the report by NSDA 2015, it is expected that by 2022, India would have 500 million skilled people. Apart from this, it is also estimated that every year approximately 12 million people would join the workforce, so an urgent requirement of adequate skilling of the talent pool is the need of the hour.6 Different initiatives have been taken by the Government of India towards dealing with the challenges of adequately utilizing the talent pool........................

About Faridabad

Faridabad, a small district of state Haryana is one of the prime driver of state’s economy. The district is known for its industrial establishments, it has more than 15,000 small, medium and large scale enterprises. The large scale organizations in Faridabad have grown at tremendous pace. As per NSDC report 2012-17, Faridabad has been known as a major manufacturing hub for tractors, motorcycles, switch gears, shoes, tyres and refrigerator etc............

Skills Gap Assessment in Faridabad: A Background

NSDC engaged KPMG12 to conduct skills gap analysis in India on their behalf. They prepared a report of the skill gap analysis of Haryana state too and the same was published in October 2013. They conducted the study to find out skills requirement during 2012 to 2022 among the workforce in the industry to estimate the existing skill gap along with suggesting suitable timeline based measures in terms of action plan to address the skills gap.............

Skills Gap Assessment in Faridabad: An Investigation

On the basis of previous work an in depth study was carried out by authors, in which data was collected from 21 organizations through structured interview. Out of total 21 organizations, 11 were Intermediate Goods industries, 6 Capital Goods and 04 were Consumer Goods industries. The responses were collected through interview of senior officials of HR or production department as they were directly dealing with the skills sets of the working professionals. Since Faridabad is hub of different industries, the emphasis was on engineering, fabricated and other products manufacturing units...........

Intermediate Goods Industries

During the study it was found that intermediate goods industries require fundamental/basic knowledge of semiconductors, circuit design, analog and digital operations. About production and operations management the concept and application of Kaizen, Kanaban, SQC, 7QC tools, QMS, EMS, RFQ, shop floor practices, lean Management, 3D modeling, and supply chain, soldering, automation and maintenance of machines were found as the skill gap areas.........

Capital Goods Industries

In capital goods industries, it was found that the basic knowledge along with application was one of the grey areas, be it crane manufacturing or networking organization. Few organizations found skill gap among their employees regarding production and operation management, including the concept and application of PLC, 5S concept, Kaizen, Six Sigma, conversion of raw material, usage of quality testing instruments, material science and calculation of machine tolerance etc..........

Consumer Goods Industries

In Footwear manufacturing organizations, the fitters, assembly operators and stitching jobs were considered important and the company did not get talent easily........

Conclusion

Through the investigation it was concluded that the technical skills in respective industries needs to be managed. Different areas have been identified where further initiatives are required and the current investigation added few additional areas where the concerned agencies can work upon to develop the skills set.........

Assignment Questions

I. Discuss the key issues of this case. Explain how the skills scarcity can be taken care of?
II. .............

Exhibits

Exhibit I: Skills Level Requirement on the Basis of Sector During 2012-22 at Faridabad

Exhibit II: Requirement of Skills Set in Key Growth Sectors

Teaching Note Preview

Skills Gap Analysis: A Case of Faridabad Industries in India

 

Synopsis

This case study is meant to introduce the students/participants to the concept of training need assessment and its significance. The given case presents skills gap analysis of 21 manufacturing organizations including intermediate, capital and consumer goods industries. It also results in identification of various skills set for which the industry professionals are struggling to get talented manpower. The list of skills set identified can be further used for the purpose of skills development by respective institutions, agencies or bodies dealing in it.

Prerequisite Conceptual Understanding/Before the Classroom Discussion

For the purpose of meaningful case study discussion and analysis, the students must have the knowledge of the concepts of training and training need analysis. They should be encouraged to read the following mandatory reading:

Nick, Blanchard P. Effective Training: Systems, Strategies and Practices. Pearson Education India, 2008 & 2014

Case Positioning and Setting

The case study can be used for the students/participants in MBA/PGDM, Executive MBA, Management Executive Development for courses such as Human Resource Management and Training & Development. The case study may be used for explaining the concepts such as relevance of Training and Training Need Analysis.

Assignment Questions

I. Discuss the key issues of this case. Explain how the skills scarcity can be taken care of?
II. What do you understand by Training Needs Assessment? Why it is needed? Discuss in brief about different types of it and the steps involved therein.
III..............

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Abstract

This case study is suitable to introduce the concept of training need assessment and its significance to the students/participants. It presents skills gap analysis of 21 manufacturing organizations including intermediate, capital and consumer goods industries of Faridabad, Haryana. For the purpose of analysis an in-depth interview of industry experts was carried out to gauge their skills requirement at the workplace. It resulted in identification of various skills sets for which the industry professionals are struggling to get talented manpower. The list of skills set identified can be further used for the purpose of skills development by respective institutions, agencies or bodies dealing in it.



Pedagogical Objective

  • To discuss and understand the various ways to deal with scarcity of skills or talent
  • To understand the concept of training need assessment including various issues and challenges involved in it
  • To discuss and debate on the pros and cons of using different methods for identifying training needs

Case Positioning and Setting

The given case study can be used by graduate, post graduate and executive management program students or participants in their courses such as Human Resource Management and Training & Development and Manpower Acquisition. The case study may be used to explain the requirement of training in manpower acquisition, and for discussing concepts such as training need analysis and human resource planning and acquisition.


* GSMC 2017, IIM Raipur

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