Arresting Attrition in Manufacturing Sector

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“Anyone who can spell Java aspires to be a software professional in India.” This paper aims at finding the impact of this phenomena on the traditional industries such as automotive industry, steel industry and infrastructure industry such as Tata Motors, Tata Steel and the efforts they are putting to arrest the attrition in the sector. We have tried to look at the problem through the eyes of HR Personnel at Tata Motors who are leaving no stones unturned to make the best of the talent pool at their disposal. The paper also looks at the problem of the laterals movements of the employees in Tata Motors as a lot of mid level managers move to pursue higher study and join industries such as software and Knowledge Processing Outsourcing companies where in they tend to earn more because of the salary. Background

India produces more than 750,000 engineers every year. Almost 40 per cent who are interested in job search for one almost a year, while around 22 per cent take almost two years before bagging a job, according to HR firms. China alone does not suffer from the great disease called skill shortages. In May 2006, in New York Times Somini Sengupta, wrote an article titled “Skills Gap Hurts Technology Boom in India”, reports an acute shortage of engineers in the skilled sector. In India, technology companies have brought a revolution. This has made India ready for growth with young engineers from all functional area flocking to software sector to make a career. India which was earlier regarded as a country with a large number of talent pool especially mechanical engineers is now in midst of problems. The infrastructure sector, steel sector and auto sector bgoast of companies which are expanding at break neck speed through both . But their competence has become the issue. The rest were deficient in the required technical skills, fluency in English or ability to work in a team or deliver basic oral presentations. The skills gap reflects not only the lack of talent but it also reflects the lack of ability of the system to generate engineers who can change system The problem can also be attributed to the archaic and rudimentary education system in the country in which university systems produce engineers who are not really motivated by the marvels of attaining growth in engineering technology but are only being motivated by the money . The best and most selective universities generate too few graduates, and new private colleges are producing graduates of uneven quality. Many fear that the labor pinch may signal bottlenecks in other parts of the economy. It is already being felt in the information technology sector. With the number of technology jobs expected to nearly double to 1.7 million in the next four years, companies are scrambling to find fresh engineering talent and to upgrade the schools that produce it. Some companies are training faculty members themselves, offering courses tailored to industry needs and improving college labs and libraries. They are rushing to get first choice of would-be engineers long before they have completed their course work. And they are fanning out to small, remote colleges that almost no one had heard of before. The country’s most successful technology concerns can no longer afford to hire only from the most prestigious Indian universities. Nor can they expect recent graduates to be ready to hit the shop floor. Most companies require in-house training of anywhere from two to six months. Demand is beginning to be felt on the bottom line. Entry-level salaries in the software industry have grown by an average of 10 to 15 percent in recent years. Nasscom, which helps companies wanting to outsource find workers, forecasts a shortage of 500,000 professional employees in the technology sector by 2010. The labor crunch is starting to pop up across the service economy. ICICI, the country’s largest financial services company, announced plans to hire up to 40,000 workers in the...
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