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