A Study of Corporate Social Responsibility towards Enhancement of Employment Through Skill Development: An Empirical Study

 

Deepali Rani Sahoo1, Prof (Dr) Sukanta Ku. Dwibedi2

Research Scholar and Faculty of Symbiosis Law School, Noida, North Orissa University, Baripada, Odisha

Principal of Mayurbhanj Law College, North Odisha University, Baripada, Odisha

*Corresponding Author E-mail: sahoodeepali_4u@yahoo.com

 

ABSTRACT:

In the present Indian scenario skill development is emerging as an important agenda towards development of the nation. With the rapid growth in every sector, it has emerged the need for skilled manpower to accelerate the development process. Therefore, to fulfill the growing demand for skilled workforce and boost the economy, the CSR wings of corporate entities are coming up to skill the youth through direct involvement or collaboration with non profits organization. Indian Companies Act 2013 makes CSR a strategic initiative for skill enhancement. The corporate world to step forward and contribute their CSR funds for the purpose of expanding quality skill training in the country. The research paper attempts to study the present role of CSR toward skill development. In this context the paper overviewed with ten big projects on CSR with the largest skill development in India. The study also found that both the government and its partner agencies have undertaken various initiatives for the implementation of the skill development and facing various issues and challenges. This paper gives a bird eye view, how the Government should focus and examine those obstacles and challenges to develop the programs for the complete success of the skill development initiatives.

 

KEYWORDS: CSR, Skill Development, National Policy, Challenges, Employment.

 

 


INTRODUCTION:

Unemployment records in India are kept by the Ministry of Labour and employment of India. From 1995 till 2014, unemployment rate in India average 7.6% reaches all-time high in Dec. 2013 and a record low of 3.8% in December 2014. A large pool of youth in the age group of 18-25 years, despite being skilled, are facing unemployment since there are not enough opportunities for them. Dr V.K.R.V. Rao, one of the eminent economists of India, in his Indian Socialism – Retrospect and Prospect has stated that equitable distribution of the income and maximization of the production is the object of socialism under the Constitution to solve the problems of unemployment, low income and mass poverty and to bring about a significant improvement in the national standard of living. He also stated that to bring about socialism, deliberate and purposive action on the part of the State, in regard to production as well as distribution and the necessary savings, investment, use of human skills, use of science and technology should be brought about. Changes in property relations, taxation, public expenditure, education and the social services are necessary to make a socialist State under the Constitution, a reality. It must also bring about, apart from distribution of income, full employment as also increase in the production. In State of Karnataka V. Ranganatha Reddy a Bench of nine Judges of this Court, considering the nationalization of the contract carriages, had held that the aim of socialism is the distribution of the material resources of the community in such a way as to subserve the common hood. The Principle embodied in Article 39(b) of the Constitution is one of the essential directives to bring about the distribution of the material resources. It would give full play to the distributive justice. It fulfills the basic purpose of restructuring the economic order. Article 39(b), therefore, has a social mission. It embraces the entire material resources of the community. Its task is to distribute such resources. Its goal is to undertake distribution as best to subserve the common good. In Sanjeev Coke Manufacturing Co. V. Bharat Coking Coal Ltd. another – Constitution Bench interpreted the word “Socialism” and Article 39(b) of the Constitution and had held that the broad egalitarian principle of economic justice was implicit in every Directive Principle. The law was designed to promote broader egalitarian social goals to do economic justice for all. The object of nationalization of mining was to distribute nation’s resources. In State of T.N. V. L. Abu Kavur Bai, the same interpretation was given by another Constitution Bench upholding nationalization of State Carriages and Contract Carriages (Acquisition) Act. Therefore, all State actions should be such to make socio-economic democracy with liberty, equality and fraternity, a reality to all the people through democratic socialism under the rule of law.

 

According Article-41, of the Constitution “That State shall, within the limits of its economic capacity and development, make effective provisions for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want.

 

Article-42 says that, the State shall make provision for securing just and humane conditions of work and for maternity relief. According to Article 43, the State shall endeavor to secure, by suitable legislation or economic organization or in any other way, to all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work ensuring decent standard of life and full enjoyment of leisure and social and cultural opportunities and in particular, the state shall endeavor to promote cottage industries on an individual or co-operative basis in rural areas.

 

According to Article-43-A, the State shall take steps by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organizations engaged in any industry.  

 

The Preamble and Article-38 of the Constitution envision social justice as the arch to ensure life to be meaningful and likeable with human dignity.

Unemployment records in India are kept by the Ministry of Labour and employment of India. From 1995 till 2014, unemployment rate in India averaged 7.6% reaching all-time high in Dec. 2013 and a record low of 3.8% in December 2014.1 A large pool of youth in the age group of 18-25 years, despite being skilled, are facing unemployment since there are not enough opportunities for them. Interestingly, the gap between rural & urban employment rate is also not very wide. But since India has the largest population of youth in the world, the impact of declining financial market is worst in India.2 Though education level in recent years has increased but skill development is still a crucial issue. Moreover, poverty, limited access to skill-based education, work experience are some of the major factors that lead to unemployment and under employment. Current Prime Minister Narendra Modi too has emphasized on Skill Development of youth so that they would be able to fulfill the mission of nation building. Government should set-up their efforts to support skill and retraining activities to address the gaps between demand and supply of work skills and qualifications. The country needs to take a serious look at its present scenario and think of some serious remedial measures to face the mammoth problem of unemployment.3 The society has to change its out-look on white collar and blue-collar jobs, along with a change in education system and needs to create more opportunities of self-employment. Stress on vocational training is need urgently. Then only we can overcome the growing problem of unemployment.

 

 Vocational education refers to a system or course of study which prepares individuals for jobs that are based on manual or practical activities. Moreover, with Indian economy expending, different sectors are growing and so is the demand for skilled professionals in various fields. Recognizing this aspect the government of India (GOI) put in place a National Policy for skill development in 2009.4 Subsequently, the National Policy for skill development and entrepreneurship 2015 (Government of India, 2015) came into effect. The primary objective of this policy is to meet the challenges of skilling at scale with speed, standard (quality) and sustainability. It aims to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common standards and link skilling with demand centers. Skill Development is the shared responsibility of the key stake holders viz the government, the entire spectrum of the corporate sector, community-based organizations, those outstanding, highly qualified and dedicated individuals who have been working in the skilling and entrepreneurship space for many years, industry and trade organizations and other stakeholders.5

 

 

Most of the formal skills-related training in the government apparatus happens through institutions such as the Industrial Training Institutes (it is) and the Industrial Training Centers (ITCs) and Polytechnics which come under the Ministry of Labour and Employment. Many of the ITIs have how been brought under the Public Private Partnership (PPP) route. Informal skills related training, including that in the traditional arts and crafts of India is also supported through different government ministries. Directorate General of Employment and Training (DGET) Launched Women’s Vocational Training Programme, which aimed at bringing more women as skilled employees in the organized sector.7 If all the sectors of India join hands in providing the different education patterns under one roof, it can boost India’s employment rates greatly. Vocational education and skill related training will not only provide jobs, but give many a reason to live a worthy and independent.

 

Review of Literature:

A review of literature on evaluation of training was conducted to identify methods of effectiveness evaluation for training program definitions of evaluations were identified in the literature. 

 

The World Business Council for sustainable development defines CSR as the continuing commitment by business to behave ethically & contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. According to this definition, business societies have responsibilities to contribute to the development of their employees, their families, the local community and wider society to improve their quality of life and thus to try to ensure sustainable economic development.

 

Kirkpatrick (1971) In his book entitled as “A practical guide for supervisory training and development has defined as how well the trainees liked the training program. The second measurement level. Learning is designated as the determination of what knowledge, attitudes, and skill were learned in the training. The third measurement level is defined as behavior. Behavior outlines a relationship of learning (the previous measurement level) to actualization of doing Kirkpatrick recognized a big difference between knowing principles and techniques and using those principles and techniques on the job the fourth measurement level results, it is expected outcomes of most educational training programs such as reduced costs, reduced turnover and absenteeism, reduced, grievances, improved profits or moral and increased quality and quantity of production.

 

Wagner and Roland – 1992 has explained “Three measures were used to determine behavioral changes” over 20 organizations and 5000 participants were studied. Three measures were used to determine behavioral changes. Measure one was a questionnaire completed by participant both before and after training, second measure was supervisory reports completed on the functioning of work groups before and after training,  third measure was interviews with managers other than the immediate supervisor to obtain reactions to individual and work group performance after OBERT program results reported showed no significant changes in behavior.

 

Hopkins, 1995 “has explained skills and leadership capacity of their employees”. There are several ways managers can use professional development to increase the competence, skills and leadership capacity of their employees. One way to do this involves managers encouraging employees to purse continuing education opportunities and empowering employees through various leadership opportunities within the organization.

 

Objectives of the Study:

Ø To study the new companies Act 2013, Section 135.

Ø To study the present skill development system in India.

Ø To study the Government and role of Indian Companies towards Skill Development through CSR.

Ø To study the challenges faced by Skill Development System in India.

Ø To suggest possible solutions.

 

Research Methodology:

The proposed study mainly is descriptive in nature. It solemnly based on secondary data and information which is collected from the concerned source as per need of the research. The relevant books, documents of various departments and organizations, articles, news papers and web-sites are used in this study.

 

meaning of corporate social responsibilities (CSR)

A review of literature on evaluation of training was conducted to identify methods of effectiveness evaluation for training program definitions of evaluations were identified in the literature.

 

The World Business Council for sustainable development defines CSR as the continuing commitment by business to behave ethically & contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.8 According to this definition, business societies have responsibilities to contribute to the development of their employees, their families, the local community and wider society to improve their quality of life and thus to try to ensure sustainable economic development.9

 

Kirkpatrick (1971) in his book entitled as “A practical guide for supervisory training and development has defined as how well the trainees liked the training program. The second measurement level. Learning is designated as the determination of what knowledge, attitudes, and skill were learned in the training.10 The third measurement level is defined as behavior. Behavior outlines a relationship of learning (the previous measurement level) to actualization of doing Kirkpatrick recognized a big difference between knowing principles and techniques and using those principles and techniques on the job the fourth measurement level results, it is expected outcomes of most educational training programs such as reduced costs, reduced turnover and absenteeism, reduced, grievances, improved profits or moral and increased quality and quantity of production.

 

Wagner and Roland–(1992) have explained “Three measures were used to determine behavioral changes” over 20 organizations and 5000 participants were studied.11 Three measures were used to determine behavioral changes. Measure one was a questionnaire completed by participant both before and after training, second measure was supervisory reports completed on the functioning of work groups before and after training, third measure was interviews with managers other than the immediate supervisor to obtain reactions to individual and work group performance after OBERT program results reported showed no significant changes in behaviour.12

 

Hopkins,(1995) “has explained skills and leadership capacity of their employees”. There are several ways managers can use professional development to increase the competence, skills and leadership capacity of their employees. One way to do this involves managers encouraging employees to purse continuing education opportunities and empowering employees through various leadership opportunities within the organization.

 

Holli and Calabrese,(1998)  has explained “value judgments about the quality of programs”. Defined evaluation as comparisons of observed value judgments about the quality to standard or criteria of comparison. Evaluation is the process of forming value judgments about the quality of program, product and goals.13

 

Fancsali, (2002) has explained “Staff development occur on an ongoing basis” Recommends that staff development occur on an ongoing basis more specifically, the national staff development council suggests that educations spend at least a quarter of their work time on staff development activities.14

 

Jackson (2006), has explained “timing of staff development” with regarded to scheduling staff development can affect the success of the development program itself consequently. She recommends that the timing schedule be developed with consideration of staff needs and wants.15

 

Core Principles of Corporate Social Responsibility:

The  “triple bottom line” introduced by Elkington is one of the best – known models to discuss the core of Corporate Social Responsibility.16 In this model, the concept of CSR  emphasizes three responsibility of a company :  i.e.  social, economic & environment. These responsibilities are necessary to ensure economic prosperity, environmental quality and social justice. Carroll has identified four responsibilities which a company should accept to become socially responsible in a balanced way. According to him a socially responsible company encompasses the economic, legal, ethical and discretionary expectations that society has of organizations at a given point of time. Another strong argument in the recent CSR practice literature relates to stakeholder engagement in CSR performance.17 Freeman argues that companies have a responsibility to add their stakeholders to corporate activities.18 To him; stakeholder engagement is a valid way for companies to deal with their external environment effectively. Considering these major sources of CSR practice, they may be grouped into four major categories: the societal, environmental, economic and stakeholder approaches.19

 

Each of these approaches has different perspective in terms of definitions and boundaries of responsibility. However, each of these approaches has their individual underlying principles. Briefly, the principle of societal approach to CSR is that companies should contribute to building better societies and therefore they should incorporate social concerns into their core strategies as well as consider the full scope of their impact on societies. More particularly, the principle requires companies to implement fair wage policies, uphold human rights, fair trade and ethical issue, produce safe products and cooperate in the network of companies and communities. The economic principle emphasizes company efficiency in producing goods without compromising social and environmental values. This principle denotes that along with their responses to the financial expectations of their shareholders, companies should focus on the economic well-being of society as a whole. The environmental principle, in short, states that the companies should not harm the environment in order to maximize their profits and those companies should have a strong role in repairing environmental damage caused by their irresponsible use of natural resources. Finally, the principle of the stakeholder approach to CSR practice holds companies responsible for considering the legitimate interest of their stakeholders. These principles are the drivers of the sources of different CSR practices and hence important factors for initiating any strategies for developing CSR practices. These principles are used broadly within different segments of government, business and the academic world. For this book, these principles are considered to be the corner store, for the development of socially responsible corporate culture.

 

Corporate Social Responsibility – Indian Companies Act – 2013.

India’s recent companies Act-2013 has made current new provisions which diversity the face of Indian Corporate business with one of such new provisions in Corporate Social Responsibility. The ideology of Corporate Social Responsibility is based on give and take such as companies take resources in form of raw material, human personnel’s and many more from the society.20 By operating the CSR activities, the organizations are contributing some portion back to the society.21

 

Ministry of Corporate Affairs has newly introduced section-135 and schedule – VII of the companies Act as well as the Companies provision on CSR policies and Rules, 2014 has come to an action of 1st April 2014.

 

Application:

Companies Act-Section-135 provides the verge for the limits of applicability of the CSR at a company i.e. (i) net worth of the company to be Rs. 500/- crores or more (ii) turnover of the company to be Rs. 1000 crores or more (iii) net profit of the company to be Rs. 5 crores or more. Further as per the CSR rules, the provisions of CSR are not only applicable to Indian Companies, but also applicable to branch and project offices of a foreign company in India.22

 

Corporate Social Responsibility Committee and Policy:

Every entitle organizations requires to spend at least 2% of its average not profit of the immediate preceding’s of 3 financial years on CSR activities. In addition, all certified companies are required to constitute to constitute a committee for CSR in Board of Directors consisting 3 or more direct or members.23 The Corporate CSR Committee should develop and recommended to the board, a policy which illustrate the exercise are to be taken (CSR) policy; endorse the amount of expenditure to be incorporated on the activities suggested and monitored the CSR policies of the organization. The Board shall take into account the suggestions and the recommendations made by the CSR Committee and approve the CSR Policy of the Company.24

 

Activities under Corporate Social Responsibility:

The exercise that can be performed by the organization to achieve the CSR obligations which includes wipe out of extreme hunger and poverty, promotion of education, promoting equality of gender, reducing child mortality, focusing on woman’s empowerment, improving maternal health, combating human immune deficiency virus, acquired, immune deficiency syndrome, malaria and other diseases, ensuring environmental sustainability, employment enhancing vocational skills, social business projects, contribution to the Prime Minister’s National Relief fund or any other and set up by the Central Government or State Governments for Socio-economic development  and relief and funds for the welfare of the scheduled castes, the scheduled Tribes, other backward classes, minorities and women and such other matters as may be prescribed.

 

Local Area:

Under the Companies Act, importance should be given to the local areas and the areas where the organization operate, organization may also want to associate with 2 or more companies for fulfilling the CSR activity provided they are capable to execute individually.25 The CSR committee shall also develop CSR policy in which it includes the projects and programs which is to be undertaken, prepare a list of projects and programs which a company plans to execute during the year and also high light on integrating business models with social and environmental importance and process in order to develop share value.26

 

Benefits of Corporate Social Responsibility

The benefits of Corporate Social Responsibility (CSR) have been highlighted in three main dimensional (Organizational, Social and Environmental)

 

Organizational Benefits:.27

(a) Enhanced financial performance;

(b) Lower operating costs;

(c)  Increase the brand image and reputation;

(d) Appreciation sales and customer loyalty;

(e)  Larger productivity and quality;

(f)  More capacity to attract and retain employees;

(g)  Reduction in regulatory oversight;

(h) Approach to capital;

(i)   Workforce diversity;

(j)  Product safety and decreased liability.

 

Social Benefits:.28

(a) Charitable contributions;

(b) Employee volunteer programs;

(c)  Corporate involvement in community education, vocational educational skill to generate employment and homelessness programs;

(d) Product safety and quality.

 

Environmental Benefits:.29

(a) Greater material recyclables;

(b) Better product durability and functionality;

(c)  Greater use of renewable resources;

(d) Integration of environmental management tools in to business plans including life – cycle assessment and costing, environmental management standards and eco-labeling.

 

CSR Towards employee motivation:

Motivation is derived from the word “Motive”. A ‘motive’ is an inner state that energizes, activates or moves and directs or channels behavior towards goals. “Motivation represents an unsatisfied need which creates a state of tension or disequilibrium causing the individual to move in a goal directed pattern towards restoring a state of equilibrium by satisfying the need.” According to the Encyclopedia of Management, ‘motivation refers to the degree of readiness of an organization to pursue some designated goal and implies the determination of the nature and locus of the forces, including the degree of readiness.”

 

It is a bare fact that most of the employees use a small portion of their mental and physical abilities. To exploit the unused potential in people, they are to be motivated. Needless to say that such exploitation results in greater efficiency, higher production and better standard of living of the people. Some special employee motivation schemes for this purpose i.e.

 

(1) Scheme for sponsoring Executives for Higher Specialized Education / Training:  

The Scheme is applicable for all level of executives for recognized professional courses only. The courses covered are in the areas of general management programme, special programme in the areas of engineering and technology or other functional disciplines and specialization courses for medical executives. The company sponsorships are provided to the programmes on the basis of individual initiatives or company initiatives. Sponsorship with any financial commitment from the Company are made only for the courses / categories of institutions like; for management courses at IIMs, XLRI, Jamnalal Bajaj Institute of Management (Bombay University), FMS, IITs, IIFT, MDI; for engineering and technical courses at IITs and IISc. Bangalore or research laboratories of national and international repute; tailor made course for public sector at MDI, Gurgaon and FMS, Delhi University; specialization courses for medical executives at AIIMS and medical institutions of such eminence recognized by Medical Council of India.

(2) Incentive Scheme for Acquiring Professional Qualifications :

The objectives of this scheme is to motivate employees to strive for self-development through improving their knowledge and professional competence by undertaking advanced studies relevant for the company as well as their functions. All employees below Board level including Management Trainees shall be given lump sum incentive when they acquire additional qualifications as specified and relevant for their effective functioning in the Company. The employees are motivated to acquire degrees like Doctorate, Master’s Degree, Bachelor’s Degree, ICWA, MBA etc. through this scheme.

(3) Cash Incentive Scheme for Promoting Small Family Norms:

Those employees (or their spouses) who undergo sterilization operation including laparoscopic sterilization operation are entitled to some incentives by the Company under some conditions.

(4) Incentive Scheme for Promotion of Progressive use of Hindi in day to day office / work: 

The objective of this scheme is to encourage employees to acquire qualifications in the Hindi language and use official language Hindi in their official work and to comply with the provisions of the Official Languages Act 1963, the Official Languages Rules 1976 and the Orders issued from time to time by the Government of India regarding the Hindi Teaching Scheme and the use of Hindi as Official Language. The Company provides incentives in terms of waving tuition fees for these examinations, providing free textbooks for Prabodh, Praveen and Pragya Examinations. TA as per TA Rules for attending training classes and duty leave for appearing in the examination. The Company also gives cash awards and lump sum awards on passing the prescribed Hindi Examination which are Income Tax free.

 

CSR TOWARDS EMPLOYEE WELFARE:

In Consumer Education and Research Center V. Union of India, a Bench of three Judges had to consider whether right to health of workers in the Asbestos Industries is a fundamental right and whether the management was bound to provide the same? In that context, considering right to life under Article– 21, its meaning, scope and content, this Court had held that the jurisprudence of personhood or philosophy of the right to life envisaged under Article-21 enlarges its sweep to encompass human personality in its full blossom with invigorated health which is a wealth to the workman to earn his livelihood, to sustain the dignity of person and to live a life with dignity and equality. The expression ‘life’ assured in Article- 21, does not connote mere animal existence or continued drudgery through life. It has a much wider meaning, which includes right to livelihood, better standard of living, hygienic conditions in the workplace and leisure.

 

The Constitution Commands justice, liberty, equality and fraternity as supreme values to usher in the egalitarian social, economic and political democracy. Social justice, equality and dignity of person are comer stones of social democracy. The concept of ‘social justice’ which the Constitution of India engrafted consists of diverse principles essential for the orderly growth and development of personality of every citizen. “Social Justice” is thus an integral part of justice in the generic sense. In other words, the aim of social justice is to attain substantial degree of social, economic and political equality, which is the legitimate expectation and constitutional goal. Social security, just and humane conditions of work and leisure to workman are part of his meaningful right to life and to achieve self-expression of his personality and to enjoy the life with dignity. The State should provide facility and opportunities to enable them to reach at least minimum standard of health, economic security and civilized living while sharing according to their capacity, social and cultural heritage.

 

In a developing society like ours, steeped with unbridgeable and ever-widening gaps of inequality in status and of opportunity, law is a catalyst, rubicon to the poor etc, to reach the ladder of social justice. The welfare measures need not be in monetary terms only but in any kind / forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families, employee welfare schemes for this purpose:

(1)           House Building Allowance: 

The objective of this scheme is to establish uniform policy and rules relating to grant of House Building Advance and to grant house building advance as a purely welfare measure. These rules are implemented subject to availability of funds of the annual operations budget of the Company.

(2) Grant for Vehicle Advance: 

The objective of this scheme is to assist the employees of the company to purchase Motor Vehicle. All regular employees (including employees on probation on first appointment and management trainees) are eligible for this scheme. All employees with minimum basic per month of Rs. 4640/- are eligible for purchasing motor-cycle, scooters or moped through this scheme. However, only executives with minimum basic per month of Rs. 12,250/- are eligible for purchasing motor vehicle or cars through this scheme. The rate of interest for two wheelers is 4% while it varies between 6% to 9.5% for motor vehicles.

(3) Reimbursement of Expenses towards Specialized Medical Treatment not Available at the Headquarters of the Employees:   

The objective of this scheme is to regulate medical claims towards specialized treatment obtained from outside the Headquarters to the employee, on being referred by the Competent Authority and standardize operation in various plants and units. All employees and their family members including Management Trainees are eligible to take benefits of this scheme.

(4) Scholarship Schemes: 

The objective of this scheme is to provide encouragement and to facilitate higher education of meritorious children of employees. The dependent legitimate children of employee (except for children employees under deputations) are eligible for this scheme. There are various types of scholarships provided under this scheme. i.e. Merit and Merit-cum-Means Scholarship. Scholarship for Differentially Abled Children for Science and Technology.

(5) Scholarship etc. scheme for Farewell to Retiring Employees: 

The Scheme is for employees superannuating or voluntarily retiring from the service of the company by giving them a fitting farewell.

(6) Scheme for Granting Assistance towards Funeral Expenses of Employees who die while in Service:   The objective of this scheme is to grant assistance in the nature of pecuniary as well as non-pecuniary aid to families towards funeral expenses for honorable funeral to employees who die while in service in the Company and to give a fitting funeral to employees who die on duty. All regular employees are eligible for this scheme.

 

Vision for the National Skill Development Initiative in India.

The following points depict the vision for the National Skill Development Schemes (NSDP, 2009).30

Scale of Ambition:

Currently the capacity for skill development in India is around 3.1 million individuals per year. The 11th five year plan envisages an increase to 15 million on an annual basis. India has set up an objective of creating 500 million skilled workers by the year 2022. In order to achieve this objective the country has to formulate skill building programs and plans.31

 

High Inclusivity:

The skill development schemes will connect inclusivity and reduce distributions such as males and females, rural and urban, organized and unorganized employment and traditional and contemporary working environments.32

 

Dynamic and Demand based System Planning:  

The skill development schemes sustain the delivery of trained workers who are adaptable dynamically to the changing demands of employment and technologies. This policy will promote superiority and will meet the requirements of knowledge economy.33

 

The skill development scheme does not discriminate between private or public delivery and puts importance on the results, users, preference, competition among trainers an their responsibility.34

 

Policy Coordination and Coherence:

The skill development schemes sustain employment generation, economic growth and social development process. Skill development policy will be a fundamental part of widespread economic, labour and social policies and programs. A structure for better organization among various ministries, states, industry and other stake holders will be instituted.35

 

National Policy on Skill Development:

In order to provide adequate training to the youth the government formulated the national skill development policy that laid an outline for skill development, ensuring that the youth of the country get better access to skills and knowledge. Key features of the National Skill Development Policy have been stated in the following paragraphs.36

 

Institution – based skill development:

This includes vocational schools, technical schools, polytechnics, professional colleges etc; learning initiatives of skill development organized by different ministries and departments; formal and informal apprenticeships and other types of training by enterprises; training for self-employment and entrepreneurial development; adult education, retraining of retired or retiring employees and lifelong learning; non-formal training, including training by civil society organizations and E-learning, web-based learning and distance learning.37

 

Institutional Framework:

The policy lays down three institutional frameworks comprising of Prime Minister’s National Council on Skill Development, National Skill Development Co-ordination Board, National Skill Development Corporation (NSDC) and National Council for Vocational Training (NCVT).38 The policy conditions the roles and responsibilities of stakeholders, which include the government, industry, trade unions, local governments, civil society institutions, skill providers & resource persons. Promotes the expansion of outreach, equity & access under skill development plan; the skill development plan requires that there is a significant amount of capacity building, innovative delivery approaches and managerial aptitude. The policy provides equal access of skill development for women, disadvantaged groups (SC, ST and OBCs), minorities, disabled persons and economically weaker sections of the society.

 

Lays down standards for quality and relevance:

The policy also makes provision for quality standards to achieve global competitiveness. It lays downs standards for quality assurance which is based on legalization of qualifications for ensuring that they reflect market requirements, substantiation of training process, accreditation of training providers and institutions, research and information.39 Quality of infrastructure, trainers, national vocational qualification framework, labour market factors and HR planning mechanisms are some of the aspects that have been reflected under the policy agenda.

 

Emphasizes on Skill Development for the unorganized sector:  

The policy lays down special importance on skill development for the unorganized sector. The policy provides for having a separate institutional method to arrange, execute and scrutinize the skill development for the unorganized sector.40 It focuses on having target groups within the unorganized sector, literacy and soft skills, recognition of prior learning and skill development for self-employed individuals.

 

Impartment of Skill Development Through Vocational TRAINING:

Skill Development through Vocational Training in India is offered by Directorate General of Employment and Training (DGET) under the Ministry of Labour and Employment. The DGET is an organization for development and coordination at the national level for the programs relating to vocational training is imparted through various schemes and they have been categorized as follows: 41

(1)  Craftsman Training Scheme (CTC) – ITI / ITC

(2)  Apprenticeship Training scheme

(3)  Craftsmen Instructor Training Scheme

(4)  Advance vocational Training Scheme

(5)  Women Training

(6)  Research and Staff Training

(7)  Instructional Material Development

 

The Courses being offered are Technical SKILLS:

Electrical Home Appliance Repair. 42

Ø Introduction to usage of tool and safety precautions while using tools.

Ø Cable joints and terminations.

Ø Electrical accessories and their uses.

Ø Connection of electrical accessories.

Ø Introduction to wires and understanding different types, gauges and colour codes.

Ø Understanding wiring diagrams and layouts.

Ø Causes of electrical shock first and safety and preventions.

Ø Purpose of earthing and making of earthing pit.

Ø Properties types and uses of conductors and insulators.

Ø House wiring including planning, making layout plan and cost – estimation.

Ø Repair, maintenance and troubleshooting of home appliance.

 

Pumps and Motor Repair: 43

Ø Fundamentals of pumps and motors sets.

Ø Components of pumps and motors sets.

Ø Pumps and motor sets installation, operation and troubleshooting.

Ø Difference type of firm centrifugal, jet, submersible, dewatering, suction etc.

Ø Detailing of induction motors.

Ø Concept of motor connection.

Ø Electrical measurement instrument.

Ø Operation of desile engine pump set.

Ø Piping connection including fitting, values, sealing, packing, couplings and bearings.

 

Refrigeration and AC Repairs: 44

Ø Understanding heat and pressure measurement.

Ø Vapour compression refrigeration and components.

Ø Types of AC (split AC and window AC)

Ø Parts of AC (Electrical and Non-electrical)

Ø Charging and evacuating or refrigeration system.

Ø AC installation procedure. (Split and window AC)

Ø Service and maintenance of AC.

Ø Checking compressor and refrigerator electrical circuits.

Ø Troubleshooting and repair of different refrigeration’s products.

 

Central Air Conditioning: 45

Ø Understanding heat and pressure measurement.

Ø Understanding principle of air conditioning.

Ø Basis of electrical connections.

Ø Refrigeration’s and their properties.

Ø Components of AC system.

Ø Cooling towers and their operations.

Ø Air handing unit (AHU) and their operation.

Ø Chiller units working principles and troubleshooting.

Ø Pressure testing and commissioning.

 

Paints Application Techniques; 46

Ø Learning the different types of paints and their uses.

Ø Applications of paint surface (majority wall, wood, metal, roof, stone and roof tiles)

Ø Learning paint components (pigments, binders, solvents, additives) and how it influences the paint quality.

Ø Practicing paint application (interior and exterior surface) on new surface and existing surface.

Ø Using the colour properties in selection paint as part of creative design.

Ø Understanding the elements of paint disposal.

Ø Using safety equipments and guidelines and following basis first aid procedure to ensure safe work environments.

Ø Understanding the causes remedy and preventions of common paints problems.

 

Retail Cafe Operation: 47

Ø Introduction to customer service.

Ø Order taking serving order and up selling.

Ø Working with POS system and understanding between cash counter and POS.

Ø Introduction to coffee and coffee beans.

Ø Operation of coffee machine.

Ø Handling of food beverages and merchandise.

Ø Café opening equipment checks machinery setup miscellaneous tasks.

 

Office Skills Selling Skills: 48

Ø Introduction to sale.

Ø Understanding frontline selling.

Ø Sales planning and its importance.

Ø Understanding various sources of lead generation.

Ø Understanding the importance of lead tracking.

Ø Understanding pre call preparation and its importance.

Ø Learning to open cell, develop need, probe customer, propose solution, eliminate doubts and close call.

Ø Maintaining customer relationship.

Ø Conducting follow up activities.

 

Retail Sale: 49

Ø Introducing the learners to the world of retail and explaining the activities involved in offering retail products and service.

Ø Explaining the advantages and features of retailing.

Ø Introducing the learning’s to various types of retail stores.

Ø Familiarizing the learners on concept of retail store operation.

Ø Training the learner on opening a conversation, developing a need, proposing a solution, eliminating doubts and closing sale.

Ø Training learners on maximizing sales through maintenance of good customer relationships.

 

Office Administration: 50

Ø Complete office management like managing filling system, maintaining office supplies and using office equipment such as photo copier, printer, fax etc.

Ø Undertaking basics of accounting such as debit and credit.

Ø Recording transaction in accounting software.

Ø Learning administrative skills like handling office visitors, attending telephone calls, handling business correspondence and making travel arrangements.

Ø Learning the basics of banking.

Ø Writing normal letters and business emails.

 

Web Designing: 51

Ø Learning the common features and parts of a computer.

Ø Learning to use the Internet.

Ø Working with window and micro soft.

Ø Understanding elements of visual communication.

Ø Understanding elements design.

Ø Understanding visual perception and techniques.

Ø Understanding an usage of adobe dream weaver.

Ø Introduction to programming logic and techniques.

Ø Learning HTML programming.

Skill Development in India

Ø The Indian skill development service will be dedicated cadre which would look into addressing the challenges and infusing professionalism in India’s skill development scenario. The many changes in India’s skill development scenario as the establishment of several Industrial Training Industries (ITIs) by the ministry of skill development attribute the need for a dedicated service in this firmament.52

Ø On 12th February 2016 announced that it will build a new 2.8 million sq ft campus in Bengaluru will be Oracle’s largest outside of its headquarters in Redwood Shores, California Oracle academy will lunch an initiate to train more than half-a-million students each year to develop Computer Science skills by expanding its partnerships to 2700 institutions in India from 1700 at present.53

Ø As of 15th February 2016 the Indian leather development program trained 51,216 youth in a span of 100 days and its plain in train 14,400 young people annually.54 Four new branches of Footwear design and development institute at Hyderabad, Patna, Banur (Punjab) and Ankleshwar (Gujrat) are being set up to improve training infrastructure. The industry is undergoing acute skill shortage and most of the people trained are being observed by the industry.55

Ø Japan’s private sector is to setup six institute of manufacturing to train 30,000 people over 10 years in Japanese style manufacturing skill and practice primarily in the rural areas.56 Japan-India institute of manufacturing and Japanese endowed courses in engineering colleges designated by Japanese companies in India in co-operation between public and private sectors would be established for this purpose. The first three institutes would be set up in Gujrat, Karnataka and Rajasthan in the year 2017.57

Ø In the budget of financial year the government of India has decided to set aside Rs.17,000 crore the highest ever allocation to this sector, in order to boost the skill India mission.58 At least ten million Indian youth enter the country’s workforce each year but the employment creation in India has not been able to do absorb this influx, making increasing unemployment a serve problem. Though this allocation the government aims at generating employment and providing livelihood to millions of young Indian who enter workforce every year.59

Ø The government of India has invested Rs. 4000 crore in the launch of SANKALP (Skill Acquisition and Knowledge Awareness for Livelihood Promotion Program) another big initiative under the skill India mission.60 Through this it aims at providing market relevant training to 35 million young Indians. Apart from this the Government would setup 100 India international skills centre that will conduct advanced courses in foreign languages to help youngster prepare for jobs idea.61

 

A list of 10 big CSR Projects in Skill Development in India (Financial Year 2016-17)-

(1) Larsen and Toubro Limited: 

The Company is a major technology, engineering, construction, manufacturing and financial services conglomerate with global operations. The companies over all CSR spent in Skill Development: 37.33 Cr. The Skill Development Centres location at Hyderabad, Ahmedabad, Panvel (Maharastra), Bengaluru, Cuttack (Odisha), Kanchipuram, Pulicat (Tamilnadu), Pilkhuwa (Delhi), Srirampore (West Bengal). The age group of beneficiaries is 18-35 years.62 The Company implements its skill development program by establishing construction Skill Training Institutes. L&T has setup eight construction Skill Training Institute (CSTIs) running across the country to contribute to the demand for Quality Craftsmanship in construction. The CSTI provide formal, free vocational training in construction skills for the largely un-organized workforce in the sector.

 

The youth, especially the school dropouts and illiterate are taught skills like bar-bending, form work carpentry, masonry, scaffolding and welding.63 A stipend, hostel facility and certificate of proficiency on completion are given to the participants. The short courses – ranging from three to six months – transform the once unemployable youth into certified, skilled, self-reliant young men, ready to join the workforce and support themselves and their families.64 The CSTIs has made 7000 youths from underprivileged employable through initiative.

 

(2) HDFC Bank Limited

HDFC is a leading provider of Housing Finance in India. Overall expenditure towards Skill Development is 18.40 Cr.65 The beneficiaries youth between age group of 18-35 years. The Bank provides skill training and development to enable beneficiaries to earn a living, with a special focus on women and youth.

 

Impact:  Nearly 16,000 individuals have benefited from the Bank’s efforts in Skills based training. It has supported more than 1,100 individuals to become entrepreneurs. One of the projects to provide job-based skills training in Uttar Pradesh has benefited more than 5,000 individuals.

 

(3) ICICI Prudential Life Insurance Company:  

ICICI Prudential Life Insurance Company Ltd. (ICICI Prudential Life) is a Joint Venture between ICICI Bank Ltd. The companies over all CSR spending Skill development is Rs. 17.03Cr. The target beneficiaries youth between age group of 18-35 years with special focus on women. The company implements its skill training through ICICI Academy for skills. The skill academy offers 12 weeks occupational skill building programs. It offers on training such as communications, financial literacy and skills to adapt to an organized working environment.

 

Impact:   

Over 64,000 youths have completed training with 100% placement. In the year 2017, more than 28,000 youths have been trained and placed with women represent action across the centers at 41%. ICICI Academy has tied up with over 800 industry partners to provide employment opportunities to the trained youth.

 

(4) NHPC Ltd. :  

NHPC Limited, a Govt. of India Enterprise, it’s over all CSR spent in skill development Rs. 16.97 Cr. The target beneficiaries – Youth between age group of 18-35 years. The company implements its skill development programs through adaptation of it is.66 The skill development centers location is Bilaspur (Himachal Pradesh), Darjeeling (West Bengal), Reasi, Baramula, Kishtwar (Arunanchal Pradesh, Leh, Srinagar (Jammu & Kashmir), Kullu, Chamba (Himanchal Pradesh) Rangit (Sikkim). The company leads froom the front when its comes to imparting education and skill development, especially to the poor and underprivileged sections of the society.67

Impact:   

The project has helped in bringing change in the lives of the beneficiaries.

 

(5) Idea Cellular:  

The Company actively contributes to the social and economic development of the communities in which they operate. The companies aim is to build a better and sustainable way of life for the weaker sections of the society, so that raising the country’s human development index.68 The companies over all CSR expenditure towards skill development is Rs. 16.00 Cr. The companies initiates its skill development programs by establishing vocational education and training centres at Raipur (Chhatisgarh), Nagpur (Maharashtra), Bhopal (Madhya Pradesh), Kanpur (Utter Pradesh), Baroda (Gujrat), Udaipur (Rajasthan). Under the initiative, 10 training programs with six technical service is conduct, namely household electrician, hardware & mobile technician, field technician CD & WG, Salon Executive, Tailoring, Logistics, Operation Executive and four service sector programs.69

 

Impact :    The project reaches out to 1800 youngsters in 6 states. The key activities include setting upa vocational centre, identification of youth, imparting training, placement etc.70

(6) Oil India Ltd:   

This Company is fully committed to safety, health and environment and is a responsible corporate citizen deeply committed to socio-economic development in its areas of operations.71 The overall CSR expenditure for the financial year 2016-17 is Rs.12.07 Cr. The skill development centre is located Tinsukia, Dibrugarh, Sivsagar in the state of Assam. It offers short term course such as construction industry, house keeping & hospitality, food & beverages, electrician, sewing machine operator, general duty assistant etc. certified by NSDC, Govt. of India.72

 

Impact:    

Since the lunch of the project in 2013-14 till 2016-17, a total of 8,560 candidates have been successfully trained and 6,669 have been placed in various industries across the country. Further, entrepreneurship education programs for students and teachers of schools and colleges were conducted under the project benefiting 4290 participants.73

 

(7) Maruti Suzuki India Limited :   

The company implement its skill development programs by adopting and upgrading it is.74 Students were imparted training on global best practices in vehicle service and repair and latest automobile technologies along with training in soft skills like discipline, punctuality, cleanliness, safety, and quality in the field of service. Maruti Suzuki is already working with 141 it is across India. The companies expenditure towards Skill Development is Rs. 11.76 Cr.75

 

Impact:

A total 1444 students, studying the Maruti Suzuki training module has been employed by Maruti Suzuki dealers in all.

 

(8) JSW Steel Ltd:  

The Company has partnered the country in the journey to self-reliance, by embracing sustainability, adopting cutting-edge technology and having innovation and R&D Initiatives in line with the culture. The Skill Development Centre is location Vijaynagar (Tamil Nadu), Vasind, Dolvi, Kamleshwar (Maharashtra), Tarapur Uttarkhand. The company has designed the CSR initiatives in line with the ‘Kushal Bharat Kaushal Bharata’ vision of Honorable Prime Minister -  Narendra Modi, with a vision of skilling 2 lakhs unemployed youth between age group 18-35 years. The overall CSR spent ini skill development in the year 2016-17 was 11.51 Cr.

 

Impact:   

Till date 6000 peoples have been already skilled through an ISO certified rural BPO and nearly 280 women have started enjoying financial empowerment and have become instrumental in motivating others.

(9) Hindustan Petroleum Corporation Limited:  

This Company is a Government of India Enterprise with Navratna Status. The company implements its skill development project “Swavalambam” through implementing partners. The company skill development project location Andhra Pradesh (Visakhapatnam, Vijayawada), Chhatisgarh (Jajpur), Gujarat (Vadodra), Haryana (Fatehabad, Gurugram), Himanchal Pradesh (Sirmaur), Jamu & Kashmir (Jamu, Srinagar, Baramulla), Jharkhand (Dumka, Gumla, Simdega, West Singhbhumi, Palamu, Jamshedpur, Ranchi, Hazaribagh), Karnataka (Belgaum), Kerala (Kochi), Madhya Pradesh (Chhindwara, Shivpuri, Indore), Maharashtra (Mumbai, Nagpur, Pune, Nashik), Odisha (Jagatsinghpur, Bhubaneswar), Pubjab (Bhatinda), Tamil Nadu (Thiruvallur), Telangana (Hyderabad), Uttar Pradesh (Amroha, Varanasi), West Bengal (Purulia, Coach Behar).85 The company implements its skill development project “Swavalambam” through implementing partners.86 Target Beneficiaries is marginalized youth. The company strongly believes that different locations have different and diverse labour demands and needs depending on the opportunities like infrastructure and industries available in these locations. It offers short term courses / trades such as electrical, welding, hospitality, driving, tailoring, beautician course etc. The over all CSR spent in skill development in the Financial Year 2016-17 was Rs. 11.48 Cr.76

 

Impact: 

The project has increased access to professional training for candidates from under privileged social and economic back grounds. It has helped the aspirants to access opportunities of new job / self employment opportunities and career paths economic improving empowerment of candidates and their families it also helped in bridging of the gap between local industry demand and supply of skilled candidates.77

 

(10)         Mahindra and Mahindra Finance Limited:   

As a socially responsible citizen, the company has undertaken corporate social responsibility activities since 2006.78 Through their activities, they constantly touch the lives of the under privileged communities across the country, in and around the areas of operation. The skill development project location Pune (Maharashtra), Chennai (Tamil Nadu), Patna (Bihar). Overall CSR spent towards the project in the financial year 2016-17 was Rs. 12.26 Cr. The beneficiaries are youth from the disadvantages section of the society between age group 18-25 years. The company implements its project through KC Mahindra Educational Trust under Mahindra Pride School.79

 

Impact: 

It has successfully placed 25,092 students from socially disadvantaged communities after receiving training in one of the three areas of Hospitality craft, Information Technology Enabled Services (ITES – for BPOs & KPOs) and Retail customer relationship management. The job placement record across batches continues to be 100% across the eight Mahindra Pride Schools in the Country. 80

 

(11)         BOSCH India Ltd :   

The company operates in the manufacturing and trading of automotive product. The company BOSCH India Ltd. reaches out to school dropout youth from under privileged backgrounds that are between the ages of 18 and 25, and not in education, employment or training. The company implements its program through PPP mode and adopting it is. Which serves as BRIDGE Training Centres.81 The company has designed the “BRIDGE’ which is a pioneering Bosch CSR program that helps in fulfilling the growing need for skilled across sectors in India. It is a 3 months short-term program. The companies over all CSR spent in skill development was Rs. 8.06 Cr in the financial year 2016-17.82

 

Impact:    

The program has trained more than 4,500 students (school dropout youth) who received 100% job placement offers.83

 

Challenge before skill Development in India:

Despite various concentrated efforts there is still a long way to bring the Skill Development mission to completion due to presence of certain serious key challenges in the path of the mission which are below.

Ø The demand made by the industries and supply of labour-force mismatch lends to aggregate all types of skill development initiatives of the government and its partner.

Ø Majority of formal institution are located in urban areas as compared to rural areas and even private sector institutions are also reluctant to operate in rural areas. Hence, large proportions of rural population do not have any formal vocational training institutions.

Ø There is lack of block level mapping of employment demand, local economy activities, youth population profile, social demographic profile etc. This leads to sub-optimal planning of skill development and local employment demand.

Ø Due to lack of awareness about industrial requirements and the availability of matching vocational courses, most of the prospective students in the country do not go for Vocational Education.

Ø The Private sector provide skill training as required by service sector mainly to educated youth (especially 12th Plan) and largely in Urban regions. Ultimately, hundreds of workers in unorganized sector do not get any kind of skill training which results in low productivity levels and employability gaps among majority of workforce.

Ø Despite of various efforts on the part of Government and its partner agencies, the credibility of vocational courses in India is still questionable. Moreover, the low reputation linked with vocational courses (or blue collar jobs) and also low compensation levels among people with such skills, prevents the students from taking vocational education as they are not aware on how vocational courses can improve their career prospects.

Ø Women in India are mainly concentrated in the formal sector and are engaged in low paid jobs with no security benefits.

Ø The private sector companies are not involved adequately in curriculum development and policy formation related to educational and vocational training.

Ø A major problem in India’s existing skill development system is lack of linkages between education and placement of that trained workforce.

Ø One of the important requirements for the proper implementation of the skill and training development programs is the availability of the basic infrastructure for the same. It has been noticed that many skill development institutions suffer from lack of proper infrastructure.

Ø Training of trainer is one of the important key of the skill development frame work and absence of the same would result in serious bottleneck in the implementation of skill development projects.

Ø The absence of proper Labour Management Information System (LMIS) impedes the very objective of the skill initiative in India as it results in poor linkage between skill development and employment.

 

Suggestions for SOLUTION AND CONCLUSION:

Ø To create a people – centric approach for skill development, it is required that the skill development initiatives needs to be coordinated with demand and supply scenarios across geographic, industries and labour markets so that new skills required by industry or changes in supply of labour are speedily adjusted with adequate and efficient training programs.

Ø The government along with its partner should set-up skill-based institutions across in the country, particularly in backward states with a view to provide equal access to all segments and sections of the society, so that the whole society gets the benefits of the skill initiatives and strategies.

Ø The syllabus must be prepared jointly by the industry and the educational planner. It should be regularly updated and must include more of practical learning than the theoretical. So that students should imbibe the necessary job skills as demanded by the industrial sectors.

Ø Finances have been major issues especially for the economically weaker sections of the society; hence, some measure has to be formulated to finance their skill development programs.

 

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Received on 01.02.2020          Modified on 18.03.2020

Accepted on 28.03.2020            © A&V Publications All right reserved

Int. J. Rev. and Res. Social Sci. 2020; 8(1):17-30.

DOI: 10.5958/2454-2687.2020.00006.4