Hrd in It Industry

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Project Report

ON

Role of HR Department in IT industry

Submitted in requirement of fulfillment of MBA degree of

GGSIPU, New Delhi

Submitted By

Name : Monika Singh

Enrolment No : 03715603910

Semester/Batch : 4th

Sem


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Northern India Engineering College

(Affiliated to GGSIPU)

FC-26, Shastri Park, New Delhi-110053

DECLARATION

I, Monika Singh enrollment no.03715603910 do hereby certify that the Research

Project entitled Role of HRD in IT Industry submitted in requirement of fulfillment

of MBA degree is an authentic record of my own work, under the guidance of Ms.Kamayani, of Northern India Engineering College, Fc-26, Shastri Park, New Delhi.

This is to further certify that I have not submitted this Project Report to any other

Institute for the award of any other degree.

(Signature)

NAME - Monika Singh

Enrollment. No. - 03715603910

Batch - MBA 4th Semester


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Date -

ABSTRACT

Human resource is a relatively modern management term having been coined in the

1960s. the origins of the function arose in those organizations which introduced

'Welfare management' practices and also in those that adopted the principles of

'Scientific management.

Since 1990 due to liberalized government policies, Indian scenario began to change.

Human resource became one of crucial driver for development and change. As the

viewpoint of management towards its employees began to change, role and


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contribution of human resource as a talent pool also become so vital that most of the

organizations started to focus their vision and mission statements on the people who

work for them.

With the boom in the technology sector in 2000, newer and newer ways of attracting,

recruiting and managing tenant in the companies also started to emerge. This paper

tries to identify various trends which came into existence as a result of technology

revolution in the country and make a comparison between pre and post liberalization

HR trends in IT industry.

1.0 INTRODUCTION

Human Resource

Human Resource is a term used to describe the individuals which comprises theworkforce of an organization, although it is also applied in labor economics, for

example, business sectors or even whole nations. Human Resource is also the

name of the function within an organization charged with the overall

responsibility for implementing strategies and policies relating to the


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management of individuals (i.e. the human resources). This function title is often

abbreviated to the initials 'HR'.

Human resource is a relatively modern management term having been coined in

the 1960s. The origins of the function arose in those organizations which

introduced 'welfare management' practices and also in those that adopted the

principles of 'scientific management. The use of the term, 'human resources' by

organizations to describe the workforce capacity, is available to devote to the

achievement of its strategies. In the simplest terms, the objective of an

organization's human resource management strategy is to maximize the return

on investment from the organization's human capital and minimize financialrisk. Human Resources seeks to achieve this by aligning the supply of skilled

and qualified individuals, and the capabilities of the current workforce, with the

ongoing and future business plans and requirements of the organization in order

to maximize return on investment and seeks to secure the future survival and

success of the entity. In ensuring such objectives are achieved, the human

resource function purpose in this context is to implement the organizations

human resource requirements effectively but also pragmatically, taking account

of legal, ethical and as far as is practical in a manner which retains the support

and respect of the workforce.

The Human Resources function may set strategies and develop policies,

standards, systems and processes to implement these strategies in a whole range

of areas for which the following would be typical of a wide range of

organizations.

1. Recruitment and Selection (Resourcing)

2. Organizational design and development.


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3. Business transformation and change management

4. Performance, conduct and behavior management

5. Industrial and employee relations

6. Human resources (or workforce) analysis and the management of workforce

personal data

7. Compensation, rewards and Benefits management

8. Training & development (Learning management)

Implementation of such policies, processes or standards may be directly

managed by the HR function itself, or the function may indirectly supervise the

implementation of such activities by managers, other business functions or via

third-party external partner organizations.

HUMAN RESOURCE MANAGEMENT TRENDS

In organizations, it is important to determine both current and future organizational

requirements for both core employees and the contingent workforce in terms of their

skills/technical abilities, competencies, flexibility etc. The analysis requires

consideration of the internal and external factors that can have an effect on the

resourcing, development, motivation and retention of employees and other workers.


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The external factors are those largely out-with the control of the organization and

include issues such as the economic climate, current and future trends of the labor

market e.g. skills, education level, government investment into industries etc. On the

other hand internal influences are broadly within the control of the organization to

predict, determine and monitor, for example the organizational culture underpinned by

management behaviors (or style), environmental climate and the approach to ethical

and corporate social responsibilities. In order to know the business environment in

which any organization operates, three major trends should be considered:

DemographicsIt is the characteristics of a population/workforce, for example, age,

gender or social class. This type of trend may have an effect in relation to pension

offerings, insurance packages etc.

DiversityIt refers to the variation within the population/workplace. Changes in

society now mean that a larger proportion of organizations are made up of "baby-

boomers" or older employees in comparison to thirty years ago. Advocates of

"workplace diversity" simply advocate an employee base that is a mirror reflection of

the make-up of society insofar as race, gender, sexual orientation, etc.

Skills and qualifications - As industries move from manual to more managerial

professions, so does the need for more highly skilled graduates. If the market is "tight"

(i.e. not enough staff for the jobs), employers will have to compete for employees by

offering financial rewards, community investment, etc.

HR TRENDS IN PRE-LIBERALIZATION PHASE

In 1990 due to liberalized government policies of various countries the human resource

started floating from one country to another this led to diversification of workforce and

cross culture took place as a result employees from one nation migrating to another

nation and bringing their culture with them this led to mixed organization culture so

the HR professional has to play major role in coordinating the workforce of different


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culture in an organization. Evolution of Personnel management started in 19th century

at that time there was a boom in industrialization which leads to increase in franchising

and influence of trade unions and harshness of industrial condition called for the better

of industrial condition.

HR TRENDS IN POST-LIBERALIZATION PHASE

Corporate India has come a long way since Independence. Today Indian companies

have spread themselves across the globe and are moving to a borderless world.

Similarly post liberalization and globalization a large population of Indians have

become a part of the multinational and foreign units. There is constant need to develop

capabilities, leverage them to ensure the growth and success of an organization and at

the same time add value to an organization. The key players who have served as

facilitators are the Human Resource professionals who have moved beyond their

administrative role to emerge as a strategic business partner. Their role has become

very critical in providing radical solutions to organization success. Today they no

longer work in independent silos, but have aligned themselves with the strategic goals.

With the changing market trends HR today is faced with several challenges and people

management issues in this talentshort market. Human resource professionals need

to think differently today and further experiment varied processes & methodologies

benefiting the human capital and the organization at large.

EMERGING HR TREND IN INDIA

A look at the trends in managing people in this dynamic industry reflects that

Attracting, Managing, Nurturing talent and Retaining people has emerged to be

the single most critical issue in lieu of the enormous opportunities spun off by

the market.


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The new avatar of talent is the knowledge professional who is innovative,

business savvy, quick on the uptake, has an instinctive ability to network, and

possessing unbridled ambition. They are propelled by an urge to experiment,

scan new avenues that can spur their creativity. The knowledge professional will

gravitate to an organization that is flexible, has strong values, a robust

performance ethic and provides challenging work on latest technology.

This has led to companies proactively taking measures on three fronts. First,

companies create an organizational ambience where talent can bloom. Second,

they put in place systems that help unleash their potential and third, they build areward and recognition mechanism that provides value for people.

HR TREND IN INFORMATION TECHNOLOGY INDUSTRY

Technology constantly generates unexpected consequence. The simple ability to

send information anywhere immediately, at minimal cost has so many

ramifications. The most obvious of the effects being in the reach and speed of


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dissemination of information. The Human Resource trend in Information

technology is discussed in this study.

Three significant growth trends in Corporate India are now pushing Hr Manger

to look towards technology for solution. Firstan explosion in CEOLevel

searches and hires by Indian companies. People like Director of Tata Sons Alan

Rosting, Ranbaxy CEO Brian Tempest, and Managing Directors of Indian

Hotels Raymond Bickson are familiar examples. Second, many companies are

searching for middle and entry-level talent. Tata Consultancy plans to hire 800

people in the US this year, mostly off campuses. Third, Indian companies are

inheriting a large number of employees through global acquisitions. Forexample, Tata Motors gained 1,000 global workers through acquisition in Korea

and Spain. And Dr. Reddy added 340 workers through a Mexican acquisition in

November.

In this scenario- Role of HRM in integrating employees into the organization

with speed ensuring high levels of performance becomes more critical than ever.

And its is technology in the form of HR systems that is aiding the HR

department in doing this today, keeping pace with the growing needs of Indian

business.

Challenges that the HR function in India faces:


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1. The first and foremost challenge that HR function in India faces is to convert the

abundant population pool into useful human resource.

2. Training and development of human resource to match ever changing industry

demands requires HR to develop new and innovative ideas that suit individual as

well as industry criteria.

3. Employee motivation and satisfaction is another area of concern for the HR

today. HR needs to realize that monetary needs are not the only drive for an

individual and that a sense of belongingness must be imbibed in employees.

4. With the increase in number of job options available nowadays, the HR function

must take care that they hire those people who believe in long-term commitment

to the organization. The HR then must take up the challenge of retaining them

by developing retention techniques like Holiday plans fun-at-work etc.

5. Because of cutthroat competition, HR in India also faces the task of building

competitive advantage for the company over national and international

competitors.

6. The growing importance that companies are nowadays giving to cost-cutting has

posed HR with the challenge to minimize expenditure on HR not compromising

on the productivity.


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7. Since right-sizing has been a growing trend in Indian organization, the HR now

faces the task of identifying and retaining the key employees of an organization

and letting go those that do not suit its future requirements.

8. HR also faces the challenge of creating a balanced organization that originates

from mergers and acquisitions. HR needs to assimilate those policies that are

mutually agreeable to the companies being merges as well as profitable for the

new organization. It also needs to take care about the organizational structure of

the merged organization.

9. Globalization poses HR with challenges such as expatriation and repatriation.

HR needs to train employees that leave their nation for fulfilling a foreign

assignment. It also needs to provide such employees with adequate moral

support and assure them of job security on their return.

10.With multinational organizations on the rise, HR needs to focus on issues such

as cross-cultural training so that problems that can arise because of differencesin international professional values can be diminished.


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Emerging concept of 4 Rs among Human Resource Managers:

4Rs in IT

Recruiting

Signing bonus

Finders Fee

Alumni

connections

Non-techs

Students

Interns

Retaining

Retention bonus

Project pay

Reduce

FTE/same pay

Telecommuting

Externs

Job sharing

Recognition

programs

Retraining

Job rotation

Team

assignments

Skill

inventories

Competency

development

Certification

Restructuring

Broad job

descriptions

Flexible

compensationprograms

Flexible jobs

Positive problem-

solving spirit

Best HR Practice in IT industry

Recruitment Management

Workforce Planning

Induction Management

Training Management

Performance Management

Compensation & Benefits


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Attendance Management

Leave Management

Benefits Management

Overtime Management

Pay slip Distribution

Timesheet Management

Employee Information/ Skill Management

Grievance Redressal

Employee Survey

Exit Interviews & Process

Health & Safety

1.0 HR CHALLENGES IN IT INDUSTRY

HR challenges to be faced in the Indian IT industries are as follows:

1. Encouraging Quality and Customer focus

2. Up-gradation of Skills through Re-training

3. Employee Retention

4. Workforce Retention and Motivation

5. Attracting the Best Talent

6. Compensation and Reward

7. Being at the best place to work with

8. Coping with the Demand-Supply Gap

9. Integrating HR strategy with Business Strategy


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1.1 INNOVATIVE PRACTICES IN HR

Internet and intranet employee services

Strategic human resources Centralized HR departments and call centers

360-degree performance appraisals

HRIS systems

Employee self-service

Voice response systems (VRUs)

Resume scanning and Internet recruitment

Kiosks

Automated time and attendance systems

Team policies and development

Outsourcing

Business process reengineering (BPR)


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Literature ReviewHUMAN RESOURCE MANAGEMENT

Human resource management is the planning, organizing, directing and

controlling of the procurement, development, compensation, integration,

maintenance, and separation of human resources to the end, that individual,

Organizational and social objectives are accomplished

EVOLUTION IN HRM

During the past half century, there has been an evolution from Personnel

Management to Employee/Industrial Relations to Human Resource

Management. The head of a company's HR department has moved from a

transaction-based role, reporting to an administrative manager, to being a

member of senior management, reporting to the senior line executive and

participating in the executive decision process.

DIVERSIFICATION IN HRM

Interesting to see what hrds deal with now a days in the organizations-

hiring and firing employees

creating organizational charts

shaping corporate culture after a merger or acquisition

managing employee communications

settling employee disputes creating benefits programs

navigating government regulations

dealing with legal issues such as sexual harassment and occupational safety

setting up policy and programs for measuring performance

compensating ,recognizing, and training employees


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Success of every business enterprise depends on its human resource. Money,

material and machines are inert factors; but man with his ability to feel, think,

conscience and plan is the most valuable resource. At the same time human

elements are most difficult to be inspired, controlled and motivated.

Growth of an enterprise is vital for the economic development of the country.

This is possible only by maintaining the enthusiasm and motivation of the

employees, which is vital for carrying out the operations in most efficient

manner. The most successful companies, all over the world have designed their

business policies to achieve higher productivity by using potentiality andstrength of people.

The basic aim of human policies is the genuine concern for the people. Proper

design of human policies is based on the higher responsibilities, personal and

positive approach in the total perspective of organizational interest. The world's

best companies have established their strength with their people.

The employees identify themselves with the company they are working for.

This help in building up their spirit and morale which becomes strength of the

company. The culture of excellence thus nurtured contributes to growth with

stability and continuous improvement in productivity.

The human resource management is very crucial in respect of

information technology services than other manufacturing or marketing

enterprises. The IT services are technical in nature and at every stage the human

touch is involved. Hence it is well motivated and devoted manpower which is

very much essential for the success of IT industry.


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Finding the right man for the job and developing him into a valuable resource is

an indispensable requirement of every organization. Human resources are

capable of providing an output that is greater than the sum of the inputs. Proper

recruitment helps them to work most effectively in accomplishing the primary

objective.

In order to harness the human energies in the service or organizational goals,

every manager is expected to pay proper attention to recruitment, selection,

training, development activities in an organization. Thus, personnel functions

such as manpower planning recruitment, selection and training, when carried out

properly, enable the organization to hire and retain the services of the best brainsin the market.

1.0 ROLE OF HR MANAGERS

The role of Human Resources is changing as fast as technology and the global

marketplace. Traditionally, the role of the Human Resource professional in many

organizations has been to serve as the systematizing, policing arm of executive

management. In this role, the HR professional served executive agendas. HR

Department was viewed as administrative overhead. HR processed payroll, handled

benefits administration, kept personnel files, and other records, managed the hiring

process, and provided other administrative support to the business. Those times have

changed. The role of the HR manager must parallel the needs of his changing

organization. Successful organizations are becoming more adaptable, resilient, quick tochange direction, and customer-centered. The positive result of these changes is that

HR professionals have the opportunity to play a more strategic role in the business.

The challenge for HR managers is to keep up to date with the latest HR innovations -

technological, legal, and otherwise. There is a need to know about the current HR

challenges, and how to most-effectively manage them in your workplace.


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1.0.1 Strategic Partner:-In todays organizations, to guarantee their viability and

ability to contribute, HR managers need to think of themselves as strategic

partners. HR person contributes to the development of and the accomplishment

of the organization-wide business plan and objectives. The tactical HR

representative is deeply knowledgeable about the design of work systems in

which people succeed and contribute. This strategic partnership impacts HR

services such as the design of work positions, hiring; reward, recognition, and

strategic pay; performance development and appraisal systems; career and

succession planning; and employee development.

1.0.2 Employee Advocate:-As an employee sponsor or advocate, the HR managerplays an integral role in organizational success via his knowledge about and

advocacy of people. This advocacy includes expertise in how to create a work

environment in which people will choose to be motivated, contributing, and

happy. HR manager provides employee development opportunities,

employee assistance programs, gain sharing and profit-sharing strategies,

organization development interventions, due process approaches to problem

solving, and regularly scheduled communication opportunities.

1.0.3 Change Champion:-The constant evaluation of the effectiveness of the

organization results in the need for the HR professional to frequently champion

change. Both knowledge about and the ability to execute successful change

strategies make the HR professional exceptionally valued. The HR professional

contributes to the organization by constantly assessing the effectiveness of the

HR function. He also sponsors change in other departments and in work

practices. helps determine the measures that will tell his organization how well it

is succeeding in all of this.


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3.1HR IT SCENARIO

3.1.1 The web is altering the HRD landscape beyond recognition. The key to

corporate success in the fast changing information era is thinking on your

knees.

3.1.2 The employees are like gypsies, on the move all the time. They camp at some

location, enhance their skills, responsibility levels and move on. This is

particularly true of the professional from Software Industry. Opportunities are

plenty and the next job opening is only a mouse click away.

3.1.3 The question is not about to retain an employee but it is about making him

productive, while he is with you. The value addition will then happen for both

the employee as well as the employer resulting in a win-win situation. This

means that the new strategy calls for the recognition that no employee is

expected to be permanently with you. Normal tenure in any Organizations is

likely to be between two to three years.

3.2INNOVATION IS THE KEY

3.2.1 Information technology and Internet have changed several equations.

Reaching out to the world market place is no more the challenge in achieving

corporate victories. Out thinking the competition at electronic speed is the key

to winning corporate battles. The corporate success is sum total of

entrepreneurship practiced by your staff.


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3.2.2 The key to employee longevity :-Todays most successful Organizations

recognize that to fuel growth and sustain a competitive advantage, they must

make recruiting, hiring and retaining top talent, as the Organizations major

thrust area. Competent people deliver the rest dont matter. Successful business

Organizations have no choice but to promote the performers and let non-

performers go.

3.2.3 Organizations recognize that that their ability to gather, manage, analyze,

distribute information and transform themselves into a learning organization

will provide continuity and ensure for them their leadership role. Systematic

organizational learning should be central corporate philosophy. Learning, mustbe obviously followed by changes, which may not necessarily be welcomed by

veterans in the Organizations. But change is the only Constant for guaranteed

success.

3.4OBSTACLES

Denial (This is long term)

Misalignment (Ramping up/Ramping down)

Timing

Treating everyone the same

Navigating the bureaucracy

Demographics

3 2.3.6 THE CRISIS

Shortage of IT workers


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WHAT OTHERS ARE DOING

Pooling recruitment efforts

Increasing freedom at the dept level (on-the-spot hiring, broad banding, etc.)

Recruiting/retaining students

Identifying tech skills in all jobs/people (Skill Inventories/assessment)

Sharing staff

2.3.6 COMPETITION

Compensation stock options, profit sharing, incentives

Alternatives outsourcing

2.3.3 RETENTION FACTORS

1. Quality of boss

2. Direction of department

3. Exposure to new technologies

4. Confidence in the company

5. Job security

6. Challenging work

7. Location

8. Access to capital resources

9. Caliber of co-workers

10. Empowerment

11. Department leadership

12. Ability to influence department success


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2.3.4 TAKING THE LEAD

See ourselves as problem-solvers

Develop critical skills and competencies in ourselves, then others

Build compensation around results not tasks; competencies, not seniority Involve everyone. Constantly align and balance resources to meet changing

needs

2.3.5 SEARCH FOR TOMORROW

Attract, retain and reward the bestperformers (Encourage all to be the best)

Increase flexibility

Reduce fixed costs

Reduce administrative effort (Simplify, simplify, simplify)

Utilize the full range of individual talents

2.3.7 ATTRACTING Recruiting sign on bonuses

Relocation incentives

Recruiters

Reduced cycle time for hiring

Campus/ job fairs / referrals/ internet

2.3.10 DEVELOPING

Internship programs

Training programs

Career development programs


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2.3.8 RETAINING

Work environment

Communication forums

Telecommuting

Flexible staffing

Exciting projects

2.3.9 PRACTICES

Focus on value

Financial and human value

Commitment to core strategy

Linkage between culture an system

Multi dimension communication

Stakeholders partnerships

Mutual support and collaboration ( teamwork)

Risk and innovativeness

Passion

2.3.12 KEY SUCCESS FACTORS

Understand people

What they want

Long term perspective Innovative

Co ordinated approach

Career development I


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2.3.11 LONG TERM SOLUTIONS

Education, government, industry partnerships

Curricula: technical skills and career skills ( teamwork and communication)

2.4 OUT SOURCING

2.4.1 In the last few years, more and more companies around the world are

looking towards India for outsourcing their software requirements. The

changing business environment is demanding new applications. In

particular, the spread of client-server computing in decentralised

Organizations involves the development of applications specific to a

user's business.

2.4.2 Outsourcing is becoming a strategy for forward thinking IS managers. It

is no longer just a means for reducing costs, but a tool for adding value to

business. It enables Organizations to concentrate on their core business,

carry out business re-engineering and provide information that is valid,timely and adequate to assist decision making at the management level

and quality and cost control at the middle and lower levels.

2.4.3 As a result, outsourcing has gradually grown beyond the traditional idea

of "having a third party running the data centre". It has come to mean,

"any use of an outside contractor to replace or extend in-house resources".

2.4.4 Outsourcing is closely linked with corporate strategy, since it must

support the Organizations' major initiative in using IS. It should enhance

and add value to the business. A rule of thumb to start and gain

experience is, "if IS is low cost and of high value addition, keep it within


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the Organizations, i.e. in-source. If IS is high cost and of low value

addition, consider outsourcing".

2.4.5 In the past few years, whenever Organizations around the world have

outsourced to India, the Indian software companies have substantially

helped to cut costs in software development projects or MIS

environments, while maintaining high quality. Moreover, all these cost

and quality advantages are coupled with the use of state-of-the-art

technologies.

2.4.6 In 2004-05 more than US$ 2500 million worth of software

development work was outsourced to India (The total software exports

from India during the year was US$ 4085 million). This was 56% higher

than outsourcing orders in 2003-04.

HR PROBLEMS OF INDIAN IT PROFESSIONALS

2.0 OVERVIEW OF PROBLEMS

2.1 The IT revolution is sweeping the world, particularly the western world in for

nearly a decade now, creating enormous employment opportunities in this area.

India joined the bandwagon well in time and smoothly though it is yet to

entrench itself strongly in terms of corporate identity and significant share of

global revenues in IT.

2.2 Our main contribution seems to be in the less glamorous areas of value addition,

maintenance, Y2K, quality assurance and customization of existing packages.

The sudden eruption of opportunities in this area left no time for development of


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human resources in a planned manner and also software solutions which tended

to be more ad hoc than being assured of quality.

2.3 A number of higher level courses have also been started mainly through private

Organizations besides the existing government (State/Central), university and

autonomous institutions.. In view of the apparent demand that appears to be

exaggerated, most of the programmers are very expensive, almost beyond the

reach of a middle-class student. Yet candidates and their parents strain

themselves financially to pursue the courses hoping to get an attractive job

(financially) which remains a mirage by and large. The problems are further

compounded by a lack of proper teaching faculty in most colleges and

franchises.

2.4 With the enormous opportunities for employment, entrepreneurship with low

capital investment and low gestation period for turning profitable, higher returns

per employee and large return on investment/EPS, sustained encouragement

from government, a very large number of organizations - large, medium, small -

have been established. Correspondingly a large number of training

establishments and cyber cafes have come up, most of which are in the cities

and towns to cash in on the enthusiasm of the urban middle class.

2.5 Except in well-established institutions, job-placements are poor. Even those

trained in reputed institutions find their jobs monotonous, leading to depression.

Jobs offered by the software industry have demonstrated the above factors as

they are able to carry out the projects with persons of any background and levels

of attainment, but with a few months training either prior to employment or a

short training during probation.


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2.6 Despite these deficiencies, students prefer software jobs mainly with an eye on

the pay-package and urban locations. The employee- retention period even in

good companies has been shrinking and is found to be three to six months. The

companies also try to devise methods to make their employees almost captive

with surety bonds, bank guarantees, employee's stock option (ESOP) and

housing facilities, among others. There does not appear to be any respectable

ethics even among companies as well as the employees in this type of free for all

market. To go abroad and become rich has become the motive of most of the

employees even if the job does not offer any intellectual satisfaction. The

manufacturing and hard-core engineering sector has also shrunk in terms of job

opportunities and attractiveness.


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3.1 MAIN PROBLEM AREAS

Recruitment process:-Without going into the deficiencies of the present practices, the

following suggestions are made to improve the process in terms of efficiency,

availability of manpower and equity to all the aspirants irrespective of the fact wherethey got educated. The various steps of the proposed approach are as follows:

Based on scores and preferences of the candidates (career counselling), companies can

ask for a video clip for subsequent interview if required. Interviews can also be

conducted simultaneously either physically or over the phone or by video conference

and selections completed.

Once selected and the candidate joins the organizations, all member organizations

should adopt a code of conduct such that the candidates stays at least for a period of

one year.

Small companies can form some kind of a cooperative society wherein software

professionals' services can be tapped and steer clear and manpower shortage.

The selection can be conditional that he acquires certified skills in the required areas

either through training in house or through approved training agencies and

establishments.. This will also ensure that there is a focus on proper training and

optimal deployment of time, effort and finances.

The selection process can thus be continuous and commensurate with the requirements

thus avoiding idle inventory.

There can be general norms of pay packages depending on the reputation of the

companies (classifying them as A, B, C, D by any reputed management institute like

IIM etc.) with the ratio of maximum pay within reasonable and realistic limits.


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Post employment care: - The companies/organizations should take adequate interest

in the career development of the employee by suitable HRD approaches which should

include the following:

Opportunities for creative work in the first phase particularly for those who are bright,

and have an aptitude and come with a good pedigree say from IITs.

Opportunities to lessen the monotony and improve interpersonal relationship and

mixing and group activities.

Periodic rotation of the rolls and jobs if possible.

Opportunities for retraining and upgrading the skills.

Conducting effective career development programs regularly.

Incentives like ESOP, lucrative assignments and challenging projects, opportunities of

higher education.

Make the employee more versatile with wider perspective and flexible for easy

deployment in areas needing strengthening.

Encouraging simplicity and excellence.


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3.1.3 Advantages:-

i. Cost effective and efficient process.

ii. Proper deployment of skills optimally.

iii. Idle employment can be minimized.

iv. Retention can be improved.

v. Particularly useful for small firms which can also operate in the

cooperative society mode.

vi. The candidate's skills are molded to suit the needs of the job and need

not waste time, money and efforts.

vii. Equitable opportunities to all aspirants irrespective of location, pedigree

and background.

viii. Reduces the mushrooms of training shops with inadequate faculty.

ix. This may also give the manufacturing and core engineering sector jobs

reasonable chance to attract willing and bright candidates.

x. The process is ideally suited for candidates to plan their careers with

adequate preparation in core areas.

xi. The process also enables a realistic assessments of needs and demands

regularly and meeting them even at short notices.

xii. The aptitude tests can become richer and more representative over a few

years and as the question bank becomes larger and random on-line

questioning can be introduced which is more objective like GRE, GMAT


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4.RESEARCH METHODOLOGY

4.1 Research design

The design of research study is exploratory in nature. Exploratory research is a

type ofresearch conducted for a problem that has not been clearly defined. -The

study was exploratory in nature. All published and unpublished data available on

the subject matter was consulted. Interview and discussions were held with the

various executive/ Managers/ staff employed in IT sector. -The HRD functions/

activities being undertaken in different IT organizations were also studied.

Primary and secondary data available with these organizations was also used forthis project study.

4.2 Research instrument

The survey was based on structured questionnaire. The questionnaire was

mainly based on objective type close-ended question, but few open endedquestions were also included. In order to measure the employees perceptions of

emerging HR trends in different IT organization, the survey was undertaken.

The survey was based on structured questionnaire. The questionnaire was

mainly based on objective type close-ended question, but few open ended

questions were also included.

4.3 Method of sampling

Probability sampling method is used for the study. It is also known as random

sampling.
http://en.wikipedia.org/wiki/Researchhttp://en.wikipedia.org/wiki/Research


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4.4 Sample size of study

100 persons working in Indian IT Industry interacted to study this topic. Hence

the sample size of the study is 100. The final questionnaire was administered in

person to the extent possible and through mail if needed. The 100 respondentswere selected among the executives and staff working in various IT

organizations. The convenient random sampling technique was used for the

selection of the respondents.

4.5 The sample

Firstly, the pilot survey on ten randomly selected respondents was undertaken.

Then the questionnaire was modified accordingly, if desired.

The final questionnaire was administered in person to the extent possible.

Finally, the results of the survey has been presented in Tabular form, analyzed

and interpreted to meet the required needs of this project study and presented in

Report form.

4.6 Data Collection

Primary data

More emphasis is given a primary source of data and its analysis for maintaining the

accuracy, reliability and for good result. Personal interview method is used for

collecting information through questionnaire.

Secondary data

Secondary data is collected from referring Books, Files, Record, Booklet and

Websites.


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2.SURVEY ANALYSIS HR TRENDS

Survey Background

HR management gets best out of its employees to meet the organizations goals. And

employees are the best judge of the HR policies of any organizations. IT sector is fast

growing industry in India and HR requirements of Indian IT Industry are quite

different from traditional industrial sectors. A major characteristic of modern socio-

economic development has been the increasingly dominant role of service sector .and

IT belongs to service sector. So, its HR needs must also be properly identified.

Indian IT sector is contributing a large in employment and foreign exchange. A

developing country like India can ill afford continued conflict ridden; rigid and

litigation oriented Industrial Relations. What employees perceive about the emerging

HR trends of the IT organizations has been measured.

To measure the success and failures of emerging HR trends of Indian IT Industry a

structured questionnaire was designed for this purpose. The questionnaire included

both open ended and close ended questions. Procedure adopted for data collection

was interview with the employees randomly selected from IT organizations to the

extent possible and also through mail. The responses given by the respondents were

recorded on the questionnaire. The views expressed by the respondents have been

analyzed in the succeeding paragraphs. About 100 respondents were selected by

convenient random sampling technique.


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5.1 RESPONDENTS PROFILE

Table 5.1.1

RESPONDENTS PROFILE - EDUCATION-WISE

No. of Respondents Percentage Of

Respondents

Male 54%

Female 46%

TOTAL 100%

Interpretation: The main features of the employees randomly selected sex-wise,

education-wise and type of functions wise has been provided here. The 54 percent

of the respondents were Male and 46 per cent of the respondents were Female.

Male

54%

Female

46%


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Table 5.1.2

RESPONDENTS PROFILE - EDUCATION-WISE

Respondents' Qualification Number Of

Respondents

Percentage Of

Respondents

Non-Tech Graduate and Below 11 11%

Non-Tech Post Graduate 23 23%

B.Tech/ BCA etc. 34 34%

M.Tech/MCA Etc. 32 32%TOTAL 100 100%

Interpretation: The chart shows the educational qualification

wise distribution of the employees who agreed for responding to our questionnaire. IT

industry requires higher level of education standards, both non-technical and technical.

Non-Tech

Graduate and

Below

11%

Non-

Tech Post

Graduate

23%

B.Tech/ BCA

etc.

34%

M.Tech/MCAEtc.

32%


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Table 5.1.3

RESPONDENTS PROFILEJOB PROFILE-WISE

Respondents' Job profile Number Of

Respondents

Percentage Of

Respondents

Software Professional 48 48%

Computer Hardware 23 23%

Marketing Services of IT 16 16%

HR and Personnel Management 13 13%

TOTAL 100 100%

Interpretation: IT industry is dominated by the software professionals and next

computer hardware and marketing services of IT are sharing the other half. Only 13

percent are working in HR and Personnel Management area. Hence, the HR needs of

IT industry must look after the software professionals at priority.

Software

Professional

48%

ComputerHardware

23%

Marketing

Services of IT

16%

HR and

Personnel

Management

13%


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5.2 Whether HR Needs Of Indian It Industry Are Different

TABLE-5.2

Emerging HR trends of Indian IT industry

Respondents'

Observation

Number Of

Respondents

Percentage Of

Respondents

Yes 69 69%

No 23 23%

Can not say 08 08%

TOTAL 100 100%

Interpretation: It was a direct question in Yes/NO/No comments format and IT

professionals selected for survey were asked to tick one of the choices as mentioned.

The majority of respondents (69%) view that HR needs of IT industry are different

from old economy sector and HR managers in IT industry has to keep this into mind.

Being highly educated employees are very sensitive in pride and behaviour.

Yes

69%

No

23%

Can't say

8%


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5.3 EFFECT OF NEW COMPENSATION METHODS

Table 5.3

EFFECT OF NEW COMPENSATION TECHNIQUES

Respondents'

Observation

Percentage Of

Respondents

Number Of

Respondents

Positive Effect 46 46%

Negative Effect 19 19%

No Major Effect 26 26%

Cant Say 9 9%

TOTAL 100 100%

Interpretation: The IT industry has been devising newer compensation methods like

Profit Sharing/ Stock Options etc. to increase employee welfare and retentively. 46%

of the employees opined that newer compensation methods has a positive effect in IT

industry while 19% said that it has a negative effect on employee, welfare. 26% view

that it has no major effect and 9 percent has replied in cant say

Positive

Effect

46%

Negative

Effect

19%

No

Major

Effect

26%

Can't

Say

9%


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.5.4 WHETHER IT INDUSTRY HAS POSITIVE ATTITUDE

TOWARDFS ITS EMPLOYEES

Table 5.4

IT INDUSTRY HAS A POSITVE

ATTITUDE TOWARDS ITS EMPLOYEES

Respondents'

Observation

Number Of

Respondents

Percentage Of

Respondents

Yes 43 43%

No 48 48%

No comments 09 09%

TOTAL 100 100%

Interpretation: It has been found that in many Organizations the management

ignores the employees welfare for their profit sake and does not give proper attention

towards employees career and prospects. 48% of the respondents' replied in negative

and 43% gave a positive reply. So, there is a profit motive operating more than

employees proper welfare management in Indian IT Industry.

Yes43%

No

48%

No

comment

9%


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5.5 STATE OF GRIEVANCES HANDLING IN INDIAN IT INDUSTRY

TABLE - 5.6

GRIEVANCE HANDLING IN

INDIAN IT INDUSTRY IS PROPER

Respondents'

Observation

Number Of

Respondents

Percentage Of

Respondents

Strongly Agree 12 12%

Agree 39 39%

No Comments 14 14%

Disagree 26 26%

Strongly Disagree 09 09%

TOTAL 100 100%

Interpretation: Only 12 respondents strongly agree to the statement and similarly a

small number of 9 respondents strongly disagreed with this. Only 14 percent have

nothing to comment. 39 percent agree that the grievance handling in Indian IT industry

is done properly and remaining 26 percent disagree with it.

StronglyAgree

12%

Agree

39%NoComment

s

14%

Disagree

26%

Strongly

Disagree

9%


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5.6 Whether top management awareness about working conditions of the

employees and state of working conditions in the organization.

Table 5.6

TOP MANAGEMENT AWARENESS

Respondents'

Observation

Number Of

Respondents

Percentage Of

Respondents

Not at all aware 20 20%

Very little aware 45 45%

Somewhat aware 11 11%

Much aware 18 18%

Very much aware 06 06%

TOTAL 100 100%

Interpretation: 65% of the respondents view that the top management's are not

aware or little aware about the employees working conditions in the IT

Organizations Only 6 percent vouched that top management is very well aware

about the nature of working conditions and 18 percent say "Much Aware".

Not at all

aware

20%

Very

little aware

45%

Somewhat

aware

11%

Much

aware

18%

Very much

aware

6%


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5.7 EMPLOYEE EMPLOYER RELATIONSHIP IN IT INDUSTRY

Table 5.7

STATE OF EMPLOYEE EMPLOYER

RELATIONSHIP IN IT INDUSTRY

Respondents

Grading

Number Of

Respondents

Percentage Of

Respondents

Excellent 14 14%

Very Good 44 44%

Satisfactory 28 28%

Poor 14 14%

TOTAL 100 100%

Interpretation: Cordial employee employer relationship is very essential in the

upcoming highly competitive economy. The state of employee-employer relationshipis not very encouraging. 58 percent of the respondents has graded it very good

and above. While 42 percent consider it satisfactory and below. The employment of

modern technology requires more positive and effective relationship between

management and the employees.

Excellent

14%

VeryGood

44%

Satisfacto

ry

28%

Poor

14%


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5.8 Whether Indian IT Industry Is Able To Retain Its Employees

Table 5.8

Retention of Employees

Respondents'

Observation

Number Of

Respondents

ercentage Of

espondents

Yes 23 23%

No 61 61%

No Comments 16 16%

TOTAL 100 100%

Interpretation: The most of the employees of IT sector are highly educated and

sensitive in nature. Moreover, the opportunities outside are very attractive, whether

Indian IT Industry is able to retain its employees was the next opinion query from the

randomly selected IT industry employees. 61% of the employees view that Indian IT

companies are unable to retain its employees due to most attractive avenues outside.

Only 23% viewed that they are able to retain the employees.

Yes23%

No

61%

NoCommen

ts16%

Number Of Respondents


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5.9 HOW TO INCREASE EMPLOYEES RETENTIVITY IN

INDIAN IT INDUSTRY

TABLE- 5.9

Suggestions For Increase Receptivity In Indian It Industry

Respondents' Suggestions Number Of

Respondents

Percentage Of

Respondents

Increase wages to international levels 22 22%

Increase foreign postings 36 36%

Increase profit sharing 10 10%

More promotions 11 11%

Others 21 21%

TOTAL 100 100%

Interpretation: 22% of the respondents has suggested to increase the wages to

international level to increase employees retentively in Indian IT industry. 36% want

more foreign postings, 10% suggest increase profit sharing and 11% suggested more

promotions. 21% of the other suggestions included lateral induction from lower the

institutes and better HR management.

Increase

wages to

internatio

nal levels

22%

Increaseforeign

postings

36%

Increase

profit

sharing

10%

More

promotion

s11%

Others

21%


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5.10 APPLICABILITY OF EXISTING INDIAN LABOUR LAWS IN

INDIAN IT INDUSTRY

TABLE-5.10

Indian It Industry Require Separate Labour Laws/ Rules

Respondents'

Observation

Number Of

Respondents

Percentage Of

Respondents

Strongly Agree 57 57 %

Agree 32 32 %

No Comments 02 02%

Disagree 07 07%

Strongly Disagree 02 02%

TOTAL 100 100%

Interpretation: The comfortable majority of respondents (89%) strongly agrees or

agree with the hypothesis that Indian IT sector requires separate labour management

system/ regulations. While only minority of 13% has given divergent views.

Strongly

Agree

57%

Agree

32%

No

Comment

s

2%

Disagree

7%

Strongly

Disagree

2%


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5.11 EFFECTIVENESS OF OLD AGITATIONAL METHODS IN IT

INDUSTRY

Table 5.11

IT industry can afford old traditional trade union methods of agitations

Respondents'

Observation

Number Of

Respondents

ercentage Of

espondents

Yes 67 67%

No 28 28%

No Comments 5 5%

TOTAL 100 100%

Interpretation : 67% of the respondents has given their reply in No and 28%

answered in affirmative. 5% has ticked No Comments choice. So, it is concluded that

old agitation techniques of trade unions are not desired in IT industry.

Yes

67%

No

28%

No

Commen

ts

5%


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5.12 EFFECT OF EXCESSIVE COMPETION IN INDIAN IT INDUSTRY

TABLE - 5.12

Excessive Competition Is Harming Employees Long Term Welfare

Respondents'

Observation

Number Of

Respondents

ercentage Of

espondents

Yes 53 53%

No 35 35%

No Comments 12 12%

TOTAL 100 100%

Interpretation: Whether excessive competition in Indian IT sector is harming theoverall long term prospects of employees The table above clearly indicates that

excessive competition is observed as harmful to the employees prospects. . 53 percent

of the respondents has replied in Yes to this question. While 35% has a negative

viewpoint.

Yes

53%No35%

No

Comment

s

12%


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5.13 ROLE OF TRADE UNION IN IT INDUSTRY

Table 5.14

Role of Trade Union In It Industry

Respondents Grading Number Of

Respondents

Percentage Of

Respondents

No Trade Union 21 21%

Single Trade Union 13 13%

Multi Trade Union 09 09%

Only welfare association 57 57%Total 100 100%

Interpretation: The largest 57 percent of the respondents view that there should be

only welfare association in Indian IT industry. 21% need no trade union and 13% like

single trade union only.. 9 percent of the respondents opted for multi trade union.

No Trade

Union

21%Single

Trade

Union

13%

Multi

Trade

Union

9%

Only

welfare

associatio

n57%


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5.14 OVERALL ASSESSMENT OF EMERGING HR TRENDS IN INDIAN

IT INDUSTRY

Table 5.14

OVERALL ASSESSMENT OF EMERGING HR TRENDS

Respondents Grading Number Of

Respondents

Percentage Of

Respondents

Excellent 32 32%

Very good 13 13%

Good 20 20%

Satisfactory 20 20%

Poor 15 15%

Total 100 100%

Interpretation: In the end, respondents were asked to give their overall assessment/

grading of emerging HR trends in Indian IT Industry. The overall assessment on five

point scales of excellent, very good, good, satisfactory and poor is tabulated. 65% of

the respondents were in positive grading of excellent, very good and good. While

35% gave a assessment of satisfactory and poor.

Excellent

32%

Very

Good

13%

Good

20%

Satisfacto

ry

20%

Poor

15%


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6.SUMMARY

Overview of the study

6.1.1 The era of skill-based workers has arrived but if India wants to truly move to the

global arena, it has to spruce up its workforce. Small may be beautiful, but not in

the IT industry. In the knowledge era and a skill-based economy, it has become

imperative that human resources become one of the most essential ingredients of

success. The growth of IT companies worldwide depends on its people and the

intellectual capital it possesses.

6.1.2 Knowledge workers has become a buzzword in todays IT scenario. And if we

look at the top software exporters, they have been growing phenomenally in

workforce strength. To make it big in the global software market, India needs to

increase its mass of knowledge workers. The establishment of Indian Institutes

of Information Technology is definitely a step ahead in the right direction, but

what the industry needs is experts in niche areas, in other words, persons with

domain expertise.

6.1.3 The total human resource strength of the IT industry as a whole stands at

425,609. A company-wise break-up of this figure reveals that nearly 525

companies constituting 35% of the IT industry employ an average of 58 personseach, 750 companies constituting 50% of the industry employ an average of 275

persons each, and 150 companies constituting 10% of the industry employ an

average of 726 persons each. At least 40 companies have more than 1,000

employees, while some very big companies like TCS, Wipro, HCL and Infosys

have staffs above 5,000 each.


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6.1.4 Geometrical growth of Information Technology in the world as well as India has

created lot of revenues for government and number of avenues for employees.

The introduction of computers has changed the way of life everywhere,

including work places and our homes. The life has become quite fast and speed

of provisioning of different services has also increased. But all this activities are

being managed by number of well qualified professionals. They may be from

computer hardware developers, software engineers or marketing managers. As

the things are running fast, so they have to be managed fast.

6.1.5 This fastness of services and higher level of education/training standards are not

easy to manage by the Organizations concerned. As we already know that

Human Resource Management of the Organizations deals with the individuals

putting their hard work to meet the Organizations goals. Managing people is the

toughest element of any Organizations than land, machinery or finances. Every

human being has its own degree of preferences, likings and attitude. So, HRmanagers have to take care of all these things in mind while dealing with the

number of people working in the Organizations.

6.1.6 Different type of employees/workers recruited for different level of working has

to be managed in different styles. The hundreds years of Organizational

management experience has been converted into a standard personnel

management and industry and service Organizations are following these HR

techniques for their Organizational management. Due to availability of written

down procedures and rules by the learned managers, it was felt that HR managing

was not so typical.


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6.1.7 Despite having abundant English-speaking skilled workforce, an acute shortage

of skilled workforce will affect the countrys software exports in the long run, if

remedial actions are not taken immediately.

6.1.8 But, emerging HR trends of Information Technology industry cannot be managed

properly by the old traditional HR techniques. As it is commonly known that man

learns by experience. 50 years of introduction of computers has provided us the

areas to be additionally addressed by the HR managers in IT sector. Indian IT

industry is not an exception. Moreover, due to existence of old conservative .and

protective labor laws it is not possible to meet the ever-growing international

competition in the IT services.

6.1.9 Hence, the IT industry has been devising newer Personnel Management/ HR

techniques which specifically meet the needs of IT industry. The main reason for

this is high standards of education and professional training required for this

industry. Secondly, there are excessive job demands for developed countries in this

sector and high wage standards. So, HR managers mainly in developing countries

like India find it very difficult to retain and recruit their manpower. HR managers

worldwide have devised handsome compensation methods like Profit

Sharing, Employee Stock Option Schemes ESOP etc. Though over the period few

schemes has flopped like ESOP due to heavy fall in company share prices.


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6.2 OBSERVATIONS

The employees opinion survey regarding status of HR management in Indian IT

Industry and success of emerging HR trends was conducted through the use of astructured questionnaire. The survey was conducted by randomly selecting 100 persons

working in Indian IT Industry.

The respondents observations in this respect are described in brief in the following

paragraphs:

6.2.1The 54% of the employees were Male and 46 per cent of the respondents were

Female. It was observed that IT industry is dominated by the software

professionals (46%), computer hardware and marketing services of IT are

sharing the other half.

6.2.2The respondents were asked to comment whether the HR needs of Indian IT

industry are different from traditional HR Management systems.. The majority

of respondents (69%) view that HR needs of IT industry are different from old

economy sector and HR managers in IT industry has to keep this into mind.

6.2.3The IT industry has been devising newer compensation methods like Profit

Sharing/ Stock Options etc. to increase employee welfare and receptivity. 46%

of the employees opined that newer compensation methods has a positive effect

in IT industry while 26% said that it has a negative effect on employee welfare.

6.2.4As per 48% of the respondents IT Organizations has more concern for profit

motive than employees welfare. While 43% were not agree to this proposition


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6.2.551 percent of the respondents strongly agree/agree to the statement that

grievance are handled properly in the Indian IT industry. While 33% think

otherwise.

6.2.6 Whether top management awareness about working conditions of the

employees and state of working conditions in the IT Organizations, 65% of the

respondents view that the top management's are not aware or little aware about

the employees working conditions in the IT Organizations . Only 4 percent

vouched that top management is very well aware about the nature of working

conditions and 16 percent say "Much Aware".

6.2.7Cordial employee employer relationship is very essential in the upcoming highly

competitive economy. The state of employee employer relationship in Indian IT

Industry was measured through the next question. The state of employee-

employer relationship is very encouraging. 58 percent of the respondents has

graded it very good and above. While 42 percent consider it satisfactory and

below.

6.2.8Whether Indian IT Industry is able to retain its employees was the a query from

the randomly from IT industry employees. 61% of the employees view that

Indian IT companies are unable to retain its employees due to most attractive

avenues outside . 22% of the respondents has suggested to increase the wages to

international level to increase employees retentivity in Indian IT industry. 36%

want more foreign postings, 10% suggest increase profit sharing and 11%

suggested more promotions. 21% of the other suggestions included lateral

induction directly institutions and better HR management.


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6.2.9Existing Indian labour Laws/Rules are not strictly applicable to Indian IT

Industry as IT sector employees are quite different from general factory workers

and are well educated and trained. The separate Labour Laws/Rules should be

designed for IT Industry:. This hypothesis was presented to the respondents. The

majority of respondents (89%) strongly agree or agree with the hypothesis that

Indian IT sector requires separate labour management system/ regulations.

While only minority of 11% has given divergent views. Further, 67% of the

respondents has opined that old agitational techniques of trade unions are not

desired in IT industry.

6.2.10 Whether excessive competition in Indian IT sector is harming the overalllong term prospects of employees in this sector . 53 percent of the respondents

has replied in Yes to this question. While 35 percent has a negative viewpoint.

6.2.11 The largest 57 percent of the respondents view that there should be only

welfare association in Indian IT industry. 21% need no trade union and 13% like

single trade union only.. 9 percent of the respondents opted for multi trade

union.

6.2.12 In the end respondents were asked to give their overall assessment/

grading of emerging trends of Indian IT industry. The overall assessment on five

point scales of excellent, very good, good, satisfactory and poor. 65% of the

respondents were in positive grading of excellent, very good and good. While

35% gave a assessment of satisfactory and poor.


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7. Findings and Conclusion

7.1FINDINGS

Findings from the above study are as follows:

7.1.1It was observed that IT industry is dominated by the software professionals,

computer hardware and marketing services employees.

7.1.2HR needs of Indian IT industry are different from traditional HR Managementsystems.

7.1.3The IT industry has been devising newer compensation methods like Profit

Sharing/ Stock Options etc. to increase employee welfare and receptivity.

7.1.4IT organization has more concern for profit motive than employees welfare.

7.1.5The top management's are not aware or little aware about the

employees working conditions in the IT organizations.


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7.2Conclusion

7.2.1There is a lack of HR professionals and HR Department in the IT industry.

7.2.2Emerging HR trends of Indian IT industry are quite different from the old

economy industry. HR managers in IT industry have to keep this into mind.

7.2.3India is considered one of Super Power in Information Technology and allied

fields. Majority of world leaders in IT sector are outsourcing their requirements

from Indian IT Industry and recruiting Indian IT professionals.

7.2.4HR managers in Indian IT Industry must keep the sensitive nature of IT

professionals and state of greater opportunities outside in mind for devising HR

policies for their Organizations.

7.2.5There is a need for modification of old agitation techniques.

7.2.6There must be an open communication system at all levels.

7.2.7There should be a proper grievance handling and feedback system in Indian IT

industry.

7.2.8A competent HRD which may help in understanding the issues related to the

employees working conditions.


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8.Recommendation and Suggestion

Based on the study on Need of HRD in Indian IT industry, the important

suggestions are mentioned here under:

8.1Most of the employees demanded proper compensation benefits for them to get as

pay per knowledge and performance.

8.2A welfare facility organization should be made.

8.3Appraisals must be given annually as per the policies.

8.4A sound and competent HRD must be there in every IT company.

8.5Employee employer relation needs to be improved.


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9.Limitation

As it is true for most of the study this project is also not free from limitation. Some of

the limitations of the study are:-

9.1Scarcity of time is one of the important limitations in this study. Time was not

sufficient for proper understanding of the whole process.

9.2All the employees were found very busy in the working hours.

9.3Difficulty was faced in extracting correct information and response to the

questions due to hesitation and lack of interest among some respondents.

9.4The result may be depended on the answer received from respondent.

9.5The sample size is too small to reflect the opinion of the whole organization.

9.6The answers given by the respondents have to be believed and have to be taken for

granted as truly reflecting their perception.


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APPENDIX

QUESTIONNAIRE FOR

PROJECT STUDY ON EMERGING HR TRENDS

IN INDIAN IT INDUSTRY

Dear Sir/Madam,

I am a management student of Northern India Engineering College, affiliated to

Guru Gobind Singh Indraprasth University, Delhi. As part of course I am undertaking

this project study on emerging HR trends in Indian IT Industry. I would a request you

to kindly answer a few questions. This questionnaire gives you the opportunity to

express your opinion regarding various aspects of emerging HR trends in Indian a new

IT Sector.

As you are all aware that Information Technology (IT) industry is achieving a

great success in Indian employment context. As you are to a part of IT industry and

must be observing that the HR trends of IT sector are quite different from the

conventional old economy sectors.

The results shall be submitted to the university in the report format for the usageof researchers and other concerned authorities. As is the case for entire study, no

individual will be identified. Only group averages will be reported.

Thanking You

Date .....


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1. Personal Profile of the Respondent

(a) Place of survey..................................

(b) Name.............................................

(c) Address...........................................

(d) Male/Female.......................................

(e) Educational qualifications:

I. Non Tech Graduate or below

II. Non-Tech Post-Graduate

III. B. Tech/BCA etc.

IV. M. Tech/MCA/MBA

(f) Nature of Job:

I. Computer Hardware

II. Computer Software

III. Marketing Services of ITIV. HR/ Personnel management

2. Whether you feel that HR needs of Indian IT sector is different from old HR

practices. (Please Tick)


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(i) Yes

(ii) No

(iii) Can Not Say

3. Whether new compensating methods being adopted by the various IT companies are

positively affecting the employees welfare?

(i) Positive Effect

(ii) Negative Effect

(iii) No Effect

(iv)Cant Say

4. "Indian IT sector companies has a positive attitude towards its employees and are

not neglecting their welfare and prospects for their profit sake." Do you agree with the

statement.

(i) Yes

(ii) No

(iii) No Comments

5 "The grievances of the employees in Indian IT sectors are handled properly". To

what extent do you with this statement.


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(i) Strongly Agree

(ii) Agree

(iii)No Comments

(iv) Disagree

(v) Strongly Disagree

6. How much do you think the top management of your organization is aware of the

working conditions of its employees?

(i) Not at all aware

(ii) Very little aware

(iii) Somewhat aware

(iv) Much aware

(v) Very much aware

7. What is the state of employee employer relationship in Your Organization?

(i) Excellent

(ii) Very Good

(iii) Satisfactory

(iv) Poor


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8. The most of the employees of Indian IT sector or highly educated and sensitive in

nature. Moreover, the opportunities outside are very attractive, Whether Indian IT

Industry is able to retain its employees.(Please Tick)

(i) Yes

(ii) No

(iii) Comments

9. What the HR managers of Indian IT sector should do to increase the retentivity rate

of its employees (Please Tick)

(i) Increase wages to international level

ii) Increase foreign postings

iii) Increase profit sharing

(iv) More promotions

(v) Any other(please specify) __________________________

10. The separate Labour Laws/Rules should be designed for IT Industry. Do you agree

with this proposition?

(i) Strongly Agree

(ii) Agree

(iii) No Comments

(iv) Disagree


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(v) Strongly Disagree

11. Whether old methods of employees association/trade union like strike or Gherao

etc. are desirable in Indian IT Sector

(Please Tick)

(i) Yes

(ii) No

(iii) No Comments

12. In your view whether excessive competition in Indian IT sector is harming the

overall long term prospects of employees in this sector.

i) Yes

(ii) No

(iii) No Comments

13. Whether do you feel there is any role of trade union in the IT Industry?

(i) No Trade Union

(ii) Single Union

(iii) Multi Union

(iv) Only welfare association


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(iv) Can not say

14. Give your overall assessment of HR Management in Indian It Industry.

(i) Excellent

(ii) Very Good

(iii) Good

(iii) Satisfactory

(iv) Poor

15. Please give your comments and suggestions to bring further improvement in HR

Management in Indian IT Industry.

Thank You


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B I B L I O G R A P H Y

1. Kothari, CR." research Methodology Methods and techniques", Wiley Eastern

Limited.

2. Lawler III, Edward E., "Control Systems in Organizations," In Handbook of

Industrial and Organizational Psychology, (Rand-Menally, 1976).

3. Mustafi, CK 1981. "Statistical Methods in Managerial Decisions, Macmillon

New Delhi.

4. Pareek, U and T.V.Rao, 1981, "Designing and Managing Human Resource

Systems", Oxford and IBH Publishing Co., New Delhi.

5. Rao, T.V. and Abraham, E.A.," A Survey of HRD Practices in Indian Industry,

in Rao, T.V. and Pereira, D.F., Recent Experiences in HRD, New Delhi, Oxford

& IBH, 1985.

6. Silvera, D.M., "Human Resource Development", 1988, The Indian

Experience.Higher Education and IT

7. Burack, E.R. & Mc. Nicholos, T.J. Human Research Planning: Technology,

Policy and & Change, The Comparative Administration Research Institute of the


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Centre for Business and Economic Research, College of Business

Administration, Kent State University, 1973.

8. Gelden, P Stevan," Report Writing for Business and Industry", Business

Communication Service.

Examples

HR Practices: A Best Practice in HR is a particular method, approach, or practice of

managing people which has a positive impact on a companys overall business

performance by improving employee satisfaction, employee motivation, and customer

Satisfaction, and/or bottom-line business performance.

At PepsiCo plant many HR practices are used for the employees, but these practices

can be categorized on the following basis:

Financial Practices

Reward and Recognition

Scholarship Program


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Learn smart( Training and development facilities

Occasional Gifts

Annual free medical checkup

Domiciliary reimbursement

Uniform distribution

Nonfinancial Practices

o Performance Appraisal:

MBO For Staff Members

360 degrees for workers

System of half yearly appraisal review Employee Recognition program

Home Visit/Nanhe Sitare

Safety related Training

Sports day and Annual day

Community Development in villages of associates

Monthly employee communication: Sankalp

Birth day celebration Of employees

Idea Acceptance Award

Employee of the month

Training in practice

IBM UK:

Tailor made training package specific to the individuals' or projects needs.


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Formal classroom training

Self-study

On-the-job training with senior colleagues.

Both technical and personal skills training

SAIL:

Many mines situated in ecologically sensitive areas.

Environment awareness training to around 200 middle and senior level executives.

Regular environmental courses in-house every year, for middle and senior level

executives.

NESTLE : Several training programmes to suit varied needs:

Employee Assistance Programme(EAP) : build the productive capacity of

individual.

Adult Basic Education and Training (ABET) : for employees without formal

education. Aids them with various skills. Management Science I

Dr. T. J. Kamalanabhan

Indian Institute of Technology Madras

Fundamental Skills:Language, literacy and communication (English),

mathematics and science.

Core Skills : Natural, economic and management sciences.

Elective Skills : Manufacturing and Assembly, Quality Control Analysis

etc.


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Management and Leadership Development (MLD) :

Three E's: Envisioning, Enabling and Energising.

The Skills Development Framework(SDF) : On-site classes fitting, turning,

mathematics, engineering science, etc.

Tata Management Training Centre :

In-house training center for the Tata Group.

Develop leadership traits.

Issue- and need-based training

Project orientation and action learning.

Classroom sessions

Gender differences in managerial development.

Male managerial hierarchyone composed predominantly of

men.

A glass ceiling exists for women in their professional

advancement through an organization.

Several reports that women were given less authority, less

international mobility compared to men.

Developmental activities had a more positive influence on men

than on women.


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Four issues of contemporary relevance to the management development process :

Cultural diversity

Sexual harassment

360 degree feedback

Mentoring process

Cultural diversity training : for countries having cultural homogeneity and diversity

and multinational companies

Approaches to cultural differences :

1. Colour blind perspectiveignoring cultural differences

2. Accept the presence of cultural differences and proposes to improve

relationships by teaching people from each culture to appreciate the

perspectives of people from other cultures.

Triandis (1995) classified these 2 approaches as :

Melting pot conceptioncultural differences are homogenized

Multiculturalism conceptionassumes each cultural group should

maintain its original culture while contributing to the smooth functioning

of the society. Management Science IDr. T. J. Kamalanabhan


Problems in diversity :

Difficulty in communication


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Lower inter personal attraction.

Goal of diversity training programmes - to reduce barriers such as values,

stereotypes and manager practices.

Sexual harassment training : 2 kinds of sexual harassment

Quid pro quo harassment sexual compliance is made mandatory for

promotions, favours and retaining ones job

Hostile-environment harassmentless blatant , refers to conditions in

the work place that are regarded offensive, such as unwanted touching

and off-colour jokes.

Training in this area consists of teaching sensitivity to other peoples values

and preferences.

360-Degree feedback :

Multiple raters including self ratings, in the assessment of individuals.

To enhance managers awareness of their strengths and weaknesses

to guide developmental planning.

Tornow(1993)360-degree assessment activities based on two key

assumptions :

1. Awareness of any discrepancies between how we see ourselves and

how others see us enhances self awareness.

2. Enhanced self awareness is a key to maximum performance.


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Mentoring :

Older and more experienced individuals advice and shepherd new people

in formative years of their careers.

Transfer of training

The extent to which trainees effectively apply knowledge, skills, and attitudes

gained in a training context back to the job is called as transfer of training.

Increasing transfer :

What to do:

Variety of examples and variability

Explicit goal-setting and barrier-coping

Meet expectations of trainees (realistic preview, recruiting)

Training choice for employees

Incentives and accountability on the job

Manager support - reinforcement, modelling of trained behaviours, goal

setting activities

Organizational climate - risk taking, experimentation, personal

development

Have a culture which recognizes the importance of continuous learning

Extent to which the post-training environment provides opportunities for

trainees to apply what they have learned


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Relapse prevention trainingtrainees identify potential problems in

application and brainstorm how to deal with them

Evaluation of training

Evaluation criteria : (by Kirkpatrick, 1976)

Reaction criteriameasure impression and feelings of the trainees.

Learning criteriaevaluate how much has been learnt in the

programme.

Behavioural criteriato what extent the desired changes in the

job behaviour of the trainee are realised by the programme.

Results criteriaeconomic value of the training programme to the

company.

Research designs : How can we measure these outcomes? (i.e., was there

a change and was it caused by the training program?)

Compare pre-training performance to post-training performance (1

group, two time periods)

Pre-test - given to establish baseline level on the outcome

Post-test - given to determine change caused by training

Compare the performance of trainees to the performance of a

control group (2 groups, one time period)


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Why have performance appraisals?

z Performance Appraisal offers several advantages at the level of the:

Individual

Recognition of past effort

Developmental requirements can be uncovered

Team

Alignment of effort with objectives

Motivation of team members

Organization

Development of staff

Achievement of key objectives

Best and focused utilization of human resources

360 degree appraisal

Multirater appraisal and feedback system

Culture building

Leadership development

Potential appraisal

Career planning

Succession planning

Team building Management Science I



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Prerequisites for 360 degree

Top management commitment

Implementing HRD systems effectively

Top management willing to invest time and effort in providing

feedback

Top management needs to conduct performance review sessions

regularly

Top management is willing to be assessed by its subordinates and

colleagues

Overall benefits of appraisals

Increased employee performance

Greater control of work

Improved motivation and commitment

Increased information flow

Better relationships within & across the organization Management Science I



Managers role in performance management

Set Objectives with Employees

Manage Rewards and ensure Fair Compensation for a level of Job


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Performance

Offer Accurate, Timely, Regular& Specific Feedback

Advantages to managers

Thro

Documents

Hrd in It Industry