The Impact of Human Resource Management on Organizational Performance
Exploring the Impact and Challenges of Human Resource Management
by K. V. Sridhar*, Dr. D. D. Aggarwal,
- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540
Volume 9, Issue No. 18, Apr 2015, Pages 0 - 0 (0)
Published by: Ignited Minds Journals
ABSTRACT
Human Resource Management (HRM) has become increasingly popular in the last few years, and is now a common function for nearly all larger companies and many smaller ones. One and every reason behind this consistency is that the belief that HRM can be a strategic benefit source that can greatly affect the outcomes and efficiency of the organization. The study offers a more in-depth look at the possible connection of HRM to success. The key plans behind the M-value hypothesis of the time unit was that HR activities influence the perceptions and actions of the workers, as everything influences the organizational efficiency, such as profitability, consistency and creativity, as successively has a positive effect on monetary and business results. An enormous volume of scientific data confirms such a favorable association regarding HRM and the success of the companies. Nevertheless, there are still commentators focusing on the shortcomings of the approach in the area of analysis. Management of human capital is an important task for both private and public sector organizations. The procedure tackles many organizational priorities such as recruiting, supplying the employee with appropriate preparation, hiring the employee, reviewing the employee, encouraging and establishing a good partnership with the employee and ensuring the safety and wellbeing of the workers within the company by legislation established by the state and nation concerned. Managing human capital is a mechanism in which the organization’s small professional staff is employed. The key intensions allow good use of the organization’s available human capital.
KEYWORD
Human Resource Management, organizational performance, strategic benefit source, HR activities, perceptions, organizational efficiency, success, scientific data, shortcomings, management of human capital
INTRODUCTION
Human resource management (HRM) is a comparatively new area which has experienced rapid growth. From its initial origins as the role engaged in the logistical facets of recruiting, firing, and payroll, it has seen stages in which Labor negotiations / evasion, employee retention, and legal enforcement have acted as primary fields of focus and competence. Recently a movement has developed towards defending the HR function’s spending and life. HR functions and systems have been a aspect of the organization's benefit calculation to be reduced as a expense and maximized as a value-added feature of business policy. Yes, those of the mainstream business press have described and proposed doing away with HR departments as bureaucratic wastelands. HR practitioners have since been obsessed with demonstrating the importance of the HR role, in particular by showing its effect on firm efficiency. From Private Management to Running Human Resources. HRM came to life by developments from the early phases of industrial psychology, industrial sociology and the philosophy of labor economics. What to inspire employees and work environments and how to improve workplace participation. The managerial tasks focused on personnel and workers were put together under the umbrella of Personnel Administration (PA) during the Industrial Relations period. There, increasing operation had a straightforward purpose focused on a particular theoretical model linked to a specific problem; furthermore, PA's ultimate aim has yet to be specified. There was a change in emphasis further down the line which created the move from PA to HRM. The goal of recognition and achievement was no longer specific work success but the general productivity of the company. During the 1960s both education and practice moved from planning and organizing operations to guiding a team to meet corporate targets. The transition of language from PA to HRM represented a different way of thinking regarding the employees; they were now viewed as commodities in an working company that had to be started to be established, the ultimate goal of PA / HRM was more visible and directed towards operational performance. Previously PA composed of behaviors deemed alternatives to separate yet similar challenges, such as unemployment, absenteeism and work satisfaction. Nonetheless, changes in the 1980s changed the emphasis from problem management to corporate result evaluation. Increased emphasis was put on transforming conventional HR metrics such as attrition, work efficiency , and quality of instruction into cost and benefit organizationally applicable indicators – while linking HRM to organizational outcomes. A modern way of thinking regarding the supervision of the workers of the organizations indicates the emergence of a new study area, a study area aimed at uncovering HRM’s ability.
HRM AND ORGANIZATIONAL PERFORMANCE (OP) RESEARCH
This is well known that policies and activities related to human resource management ( HRM) are expected to have a major and special impact on corporate efficiency. The clear relation would be either through enhancing productivity or adding to increases in revenues. The opinions on the precise communication process or model connecting the two, though, have experienced a great deal of improvement over time. This transition has taken place with shifts in the views of human capital itself from being a expense to be reduced and a possible source of productivity improvements to a source of profit production, or what "excellent" organisations identified and evaluated. This research motivated other testimonials to write about the importance of inclusive HRM practices and of these practices programs. Staff engagement and accountability and work restructuring in particular, including team-based development processes, intensive staff preparation, and performance-contingent incentive pay, are commonly assumed to enhance organizational efficiency. The belief in human resources as a competitive tool since the late 1980s has driven many articles conducted in the Academy of Management Review, Review of Accounting and Economics and Industrial Relations, among others, in the last three decades or so on the idea that HR may have major economic impact on the bottom line of a company. In various studies carried out in contexts other than Indian, a growing study community has documented positive correlations between firm-level indicators of HRM programs and organizational efficiency. Nonetheless, stress that the context in which HR is conducted must be included in the study in order to assess the efficacy of HR.
MEASURING HRM AND ORGANIZATIONAL PERFORMANCE
Performance management can be characterized as a systematic mechanism for enhancing organizational departments and people through recognizing and controlling success within an defined system of targeted targets, basic criteria for sand competency. Past reports also demonstrated the organization’s value to human resource management. Human capital plays a key part in keeping the business successful. A good human resource management should enable the organization to accomplish the objectives it needs. The effective utilization of employees ' abilities, experience and competencies in the enterprise will allow operational efficiency to be realized. Essentially, other literature often suggests that systematic human resource strategy has an effect on corporate efficiency. The report evaluated 30 companies, 16 of which are in the public industry and 14 are in the industrial sector. The work framework, to make it a stronger understanding of proof or denial, is as follows: a. Organizations become acquainted with the principles of corporate efficiency and systematic human resources strategy. Within these institutions, this abstract information is transformed into concrete application. b. Organizational efficiency can have impacts from proactive human resources strategy We should address understanding and functional applicability of SHRM values / ideas and organizational success in the first segment. The principles and the outcomes of the quest rely on reports that have been rendered of such organizations. And in order to provide a consistent survey in this analysis, it is important to examine first how organizations are acquainted with these concepts and their growth. Application of principles and expertise in organizations implies that a general management plan was conceived and created by such organizations. In addition, they established and implemented an allocated human resource management plan. From the research of 30 organizations, it resulted that (87 percent) of them were comfortable with the principles and their operational application. To put it another way, such organizations have a clear human resources training plan. Although other companies (13 per cent) were not quite comfortable with applying operational principles. That indicates certain organizations may not have a plan for human capital. Such organizations do not execute appropriate policies which mean it can be difficult to achieve the necessary efficiency. The explanation for that is clear. Organization requires the preparation, organization or specifically the research or review of climate. The company works without needing to research climate. The company is, thus, "the crossroads where they do not realize the direction they can have to follow in a shorter period and at a lower expense" There are two companies in the manufacturing field and two support organizations were not acquainted with implementing
practices designed to allow the enterprise to achieve operational priorities and objectives. How accurate is handling human capital efficiently in corporate success achievements? Is SHRM relevant in terms of its effect on efficiency of the organization? Many of the targets are cost savings, raising revenue rates, growing the amount of buyers, rising the proportion of the business, growing the price of the goods, enhancing the profitability. Organizations choose to assess their success on one or more metrics. For starters, companies seek to improve product efficiency as a metric of success to raise the amount of revenue in the industry. Improving the standard of the commodity would thereby require improved revenue through growing benefit. To reach their outputs the companies must control their inputs. Some of the organization’s key resources are human capital. Effective human resource training should make target achievement feasible. If we apply to human resources inputs, so that will be expertise, abilities, attitudes, competencies, etc. This resulted from the report that (70 percent) companies have shown a major improvement in their output by proactive human resource management, whereas (16.7 percent) organizations acknowledged that their results had been marginal improvements within the enterprise. Such small improvements were attributed to a shortage of good supervision. Human resource plans created and introduced were not in accordance with the organization’s approach. The organizations (13.3 per cent) did not see the effect of systematic human resource management on corporate efficiency. There is no real corporate planning and human capital administration in these organizations. Pay attention to these organizations who manage their human capital strategically in: a. Recruitment and deployment of relevant personnel b. Corporate Job Management c. Education and workforce development d. Employment satisfaction e. Build a complex ambient f. Employee inspiration. In brief, the efficiency of the organizations has improved by systematic control of human capital. This makes the attainment of targets for corporate success feasible. This also makes this easier for the company to remain successful. SHRM is a very powerful method for maintaining organization’s sustainability. Strategic human resources management reflects a comparatively recent shift in the area of human capital management. One essential function in strategic human resource management is to emphasize workforce recruitment as a method for achieving competitive advantage. Today, companies are made conscious that good human resources strategies and effective procedures will improve efficiency in various ways, such as profitability, consistency, and financial results. Performance management is a planned process in which various measurements, responses, positive reinforcement and continued discussion between employees and managers are key elements. This has to do with calculating outcomes in the context of realized success relative to the goals articulated as targets. Sometimes, it's in the inputs and meanings. Inputs are the knowledge, skills and behaviors required to deliver the expected results. In identifying these criteria, expectations are defined and the degree to which the desired standards of success are met by successful application of expertise and abilities, acceptable behavior is measured. Strategy for success improvement needs to do with the entire company and not just the executives. But administrators are not only accountable for achieving the output they need. Managers will have the ability to delegate power and accountability throughout the company. In a sense, managers need to collaborate and consider for reporting on achieving the required performance as part of their own people. Managers and their teams are jointly responsible for the outcomes and both are involved in agreeing what to do and how to do it. Performance monitoring systems are part of organization-wide sweeping. The organization's managers and other employees should work together to commit themselves to achieving the performance. Performance assessment approach would be based on evolving into a constant and scalable mechanism including administrators and all the enterprise working as a cohesive unit. This will decide whether they can better function together and achieve the outcomes they need. It helps the emphasis to be on preparing for potential success and efficiency enhancements. HRM Policy offers the foundation for ongoing and periodic communication with management and other staff about the organization's success expectations and future growth. Strategic human resource strategy may offer an enterprise many benefits: • Contributing to the company's accomplishment of its target and survival. • Supporting and implementing client management plans successfully. • Enhancement of the company's flexibility and growth potential. • Increasing the amount of potential strategic alternatives for the company. • Participate in corporate preparation and control the company's future course as a Top. Management participant equally eligible. • Boost communication between HRM and line managers.
A CONCEPTUAL FRAMEWORK FOR HRM AND OP RESEARCH IN INDIA
In the Indian sense, the analytical and methodological research related to the question of the firm-level connection between HRM and organizational efficiency has not advanced far. Therefore we need to develop our theoretical and empirical perspectives in three main fields in order to offer a persuasive description of the relationship between HRM and organizational success in the Indian context. Which are the essence of HRM, and in particular the reason for the different HR activities lists; the essence of organizational success; and the relation between HRM and results. Within this paper we focus on the last relation. We seek to synthesize and integrate ideas from SHRM literature into a structure that is more cohesive and applicable to the Indian context. Along these terms, a detailed model is built to investigate such linkages. The paradigm to direct scientific research is extracted from a set of unique, testable propositions. A structure that illustrates how external and internal influences impact HRM activities that in effect create certain advantages for the enterprise and eventually contribute to better organizational success. Seven identified firms adopted several "innovative" HR activities, namely J K Lakshmi Cement, Grasim Industries Ltd, Tata AIG General Insurance Co Ltd, Maruti Udyog Limited (MUL), HCL Technology Ltd., LG India and Pantaloons (India) Ltd. Noting that these businesses are performing "better" in their industries, they credit their prosperity to these so-called "innovative" HR strategies and speculate that the latter may have helped to create the company's reputation in the eyes of the workforce and thereby added to their respective "successful" market results. Anil K Singh took a survey of 95 respondents from two India-based private sector companies, and identified strong associations between HRM activities and corporate culture variables. Nevertheless, we ought to move beyond superficial views and conjectures, and look deeper into the exact process or pattern of transmission that connects HR activities and firm success in the Indian context. An HR program, which operates in every societal setting, is likely to lead to business performance because it is implemented as an integrated kit (or set of practices) that blends in with success in the Indian context. The missed linkages between HR activities and results ought to be carefully investigated. Which method variables are at work here to intervene?
CONSTRAINTS
A drawback of these methods model of mediation is that it does not suggest any concrete operationalization of the corporate structure, business perspective and policy frameworks employed in the process. It is a significant problem that needs to be bridged before HR — firm result analysis in the Indian cultural context — can validate the relevance of the concept. The approach used to establish the structure is therefore of a strictly methodological type, focused on the analysis of prior research study as well as the results of a topic focus group.
DIRECTIONS FOR FUTURE RESEARCH
It is also necessary to establish a "correct" theory or philosophical construct that defines and illustrates the interest phenomena in the most detailed way possible. Throughout the case of the HR-firm success partnership we sought to do the same here in the Indian sense. Nonetheless, in order to develop and analyze relationships one requires both a theoretical context and analytical research. The conceptual structure embodied in the above model is critical in attracting attention from researchers in empirical work in this field. Potential studies can maybe concentrate resources on producing a combined body of reliable and significant impact size estimates in this model. We hope future empirical research can include stronger and more concrete testing of the theoretical concept established here in the Indian perspective. Given the substantial contribution of SCM (supply chain management) activities to OP, the results from this analysis suggest that OC's effect on OP is stronger than the influence on the same model of SCM practices. Therefore, as with other factors, all researchers and administrators will give priority to corporate principles, standards, and expectations. Future work will also analyze OC's moderating and mediating position regarding the partnership between supply chain activities and OP. The purpose of this analysis is to clarify the causal association between SCM, OC and OP in the absence of previous studies in Jordanian settings. Nevertheless, in the same sense, the expected direct relationship is known to be an initial point for creating alternative models of direct – indirect relationships between such variables. In the present research, however, neither mediating nor moderating influences were studied. Future work is required to investigate these casual impact of mediating and moderating factors, as suggested.
rivals would hold secrets. The results can therefore be viewed with care, based on the rejected response figure. Higher answer rate would only impact projections for the survey. Future research will examine the effect of OC and supply chain processes of many production organizations in other countries on the operations. Ultimately, the study model will provide external variables that relate to the degree of OP to investigate further influences that in Jordanian settings may influence OP.
FACTORS AFFECTING OP
Per company, it has its own thoughts and principles. Nearly anything that determines the capacity of an entity to successfully compete and respond to adjustments in the outer environment – ultimately affects the success or failure of the organization. The factors that determine how an individual authoritative material moves the company forward are:
FORMATION OF AN ORGANIZATION
An organization's framework will hinder or progress implementation, based on how practicable the supervisory relations and the job cycle affect productivity. The departmental structure and accountability system are defined by both. Unless defined structures and processes that are consistently managed in the organization, operation of the board techniques can fail to achieve their ideal aim of enhancing the customer's commodity and efficiency of administration.
GUIDANCE
Extraordinary clear and rousing leaders. The way they do this most effectively is often by identifying a pattern. Leaders tend to make it well for themselves as well as other people. We are setting direction, creating a inspiring dream and producing it fresh. We know how to plan whether to succeed as a community or with an association; so it is their complex, energizing so inspiring features that render the company outstanding.
THE SURROUNDINGS OF THE ORGANIZATION
This aspect focuses on how members have essential and adequate resources, supplies and good environmental conditions for admirably fulfilling their task. This also analyzes how the organization has the mechanisms of maintenance set up to support a workable climate. miscellaneous materials • Manuals for conventions / strategy, research supports, and documents. • Physical job (equipment, office, fluids, illumination and ventilation) • On-the-job health.
ABILITY OF AN INDIVIDUAL
It factor — mostly the most easily understood — includes an expectation that employees have the necessary technical abilities and expertise required to meet the obligation. This leads to the central question: Will the leaders and departments know how to successfully perform their responsibilities? Workers / groups, for example, provide professional competence experience, health and specialized coping abilities, cognitive and management skills, logical thought, clear logic, teamwork, or improve work efficiency, etc.
EXTERNAL FACTORS
There are several external influences affecting the success of the organization, organizations, and people beyond organisations. A majority of these variables fall outside of the control spectrum or conditions under which an organization operates. Some can alter after some time may be influenced may strengthened by marketing gathering events, skilled affiliations, or network connections. Focal question is: Will outer situation variables impede or improve the association's and members' capacity to meet and accomplish their goals? Instances of these causes include national policy and directives and technical field of operation, regional and local framework: travel, public relations, water and sanitation, needs and procedures for accreditation or licensing, Social, Race, Religion and Ethnicity requirements, Monetary arrangements, educational and lifestyle rates, Economic status.
GLOBAL OR INTERNATIONAL HUMAN RESOURCE MANAGEMENT
The method of recruiting, improving and promoting staff in multinational or regional organizations is corporate or foreign human resource management. It includes handling individuals everywhere, and not only controlling expatriates. An international corporation or firm is one in which activities take place in overseas subsidiaries and depend on the parent company's business experience or production resources executives cannot continue to neglect the external impact on their jobs.
ISSUES IN INTERNATIONAL (GLOBAL) HRM
Managing foreign human capital requires a variety of problems that are not present while the company's or organization's operations are limited to one region. The International HRM challenges include: • Existing complex multinational organizational structures • To what degree HRM strategies and procedures will differ across nations. (This is also regarded as the Convergence and Divergence question). • The question of staff management in diverse communities and various climates • Approaches used to identify, employ, grow and compensate expatriates who may be citizens of the parent company or "third-country nationals" (TCNs) – nationals of nations besides the parental company working overseas in the parent company's subsidiaries.
HUMAN RESOURCE MANAGEMENT PRACTICES
Human resource management is a process of managing and controlling an organization's workforce which helps to improve an organization's performance and productivity. The efficient and sufficient tools help to create a better method of running the company and have a viable means of expanding the sector. The primary goal or intent of this study is to provide an summary of how efficient and productive human resource management affects the overall company growth cycle. In this sense, Organization helps to explain the reality and important factors in the resource management method. A company is designing and purchasing the capital according to business operation demands and specifications. There are however some shortcomings in resource management that will be listed later in this study.
RECRUITMENT AND SELECTION
The work potential inside an company requires for the workers a broad spectrum of employment opportunities. The HRM hires hire typically according to the applicants' ability and abilities. In relation to the operating phase, an company requires numerous tasks such as promotion, servicing, and financial operations. In fact, an company has many specific roles including in defense, parking and housekeeping. HRM plays an important part in the recruiting of organization's production and productivity. Every organization’s procurement mechanism primarily regulates the organization’s personnel resources team. In fact the recruiting process relies on the applicant’s ability and abilities. During this step the CVs are categorized by the vacant place criteria. Instead, the applicants chosen will face a face-to - face examination, where the candidate's ability, skill background and skills are tested. The Human Resources team monitors and manages the face-to - face conversation. The chosen applicant will instead undergo a written test, following the interview rounds. The general skill and information of the actual job was tested in the written process of the exam. The final phase includes career selection, which primarily requires requirements such as problem-solving skill, adaptability and versatility of employees in the workforce, mostly handled by department managers. A significant component of Human Resource Planning is the work contract. The primary purpose of the employment arrangement is to maintain the status of the company and its workers and to protect them. This assists with maintaining inside the company those rules and regulations. The company and its employees are expected to obey the specific principles or instructions found in the arrangement. The arrangement and amounts of the work contract was planned according to the workers' basic needs. The deal meets the needs of both the workers and the company on the other. The method aims to establish a positive structure in the workforce, without any responsibilities and questions. The workplace policy frequently offers details about the workers' duties, obligations, and privileges. Any company has a really hard time developing deals that are beneficial for all. This provides some other details such as what to do with a positive way, and what to stop. The job policy is thus quite important in protecting the role of the company and the workers.
EMPLOYABILITY SKILLS
There are employability capabilities associated towards the role inside an enterprise in order to accomplish the ultimate purpose and objective. An agency in Saudi Arabia is very serious with their recruitment method to find the best applicant for the best job with appropriate employability skills to boost the organization's method efficiency. The core attributes at employability are as follows. • The boss must have good interpersonal experience to communicate with the organization's other employees. The job must be capable of operating as a team to inspire other workers to achieve a positive outcome
• The boss must be professional and have the power to supervise the staff • The manager must be informed of the technological and code issues in order to handle the restaurant's technical tools. • Decision-making capability is the most crucial aspect and the boss must be competent enough to make critical decisions within an organization Apart from employability abilities, professional skills are often essential for handling HRM-oriented roles and duties. The members will be mindful of the various working peoples' communities and uphold all cultural principles • Will the work be self-managed and well-structured to handle the job load • Must include imaginative and inventive methods inside the restaurant to address some problems. • Candidates must establish integrity to recover the full sum for the company or to meet the aim of productive business • Should have the flexible ability to function in the atmosphere under strain. • Should have professional leadership, consistency and learn how to handle time.
CONCLUSION
In the HRM-performance review we have seen an area unit range of specific hour activities and area unit of constant. Nevertheless, what efficiency variations these hour methods, or their structures, assessed against differ in area region. In the following portion, I will describe in a succinct fashion the kinds of output the area unit usually utilizes the field of study at intervals. The results various variations are grouped into three major categories: 1) money and business output; 2) organizational efficiency; and 3) job experience and conduct. The aim of this research is to empirically analyze the effect on corporate success of wage administration, workforce growth and citizenship behavior. The goal was to assess the effect of corporate leadership practices, workforce growth and rewards on organizational success from the workforce viewpoint. The results of the study suggest that developing higher rates of pay selection procedures, advancement of workers, and actions of corporate citizenship would result in a higher degree of organizational success. As that the impact of workforce engagement and corporate citizenship behavior is also assessing the efficiency of the organization. There are several fields that need to be more explored in the future like the subjects that apply to the research that can be done with more variables on manufacturing firms. Work needs to be carried out that covers more factors , i.e. human resource management and its effect on change management , corporate financial success in other Indian cities.
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Corresponding Author K. V. Sridhar*
Principal, Private High School, Mysore