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Training and Development In HR For Newgen Technology
CHAPTER - 1
1.0 About The Newgen Company
Newgen Software is a leading global provider of Business Process Management (BPM),
Enterprise Content Management (ECM), Customer Communication Management (CCM),
Document Management System (DMS), Workflow and Process Automation. The company has a
global footprint of 1000 installations in over 50 countries with large, mission-critical solutions
that have been deployed at the world's leading Banks, Insurance firms, BPO’s, Healthcare
Organizations, Government, Telecom Companies & Shared Service Centers.
1.2. Overview
Newgen Software is a leading global provider of Business Process Management (BPM),
Enterprise Content Management (ECM), Customer Communication Management (CCM), with a
global footprint of 1000 installations in over 50 countries with large, mission-critical solutions
that have been deployed at the world's leading Banks, Insurance firms, BPO’s, Healthcare
Organizations, Government, Telecom Companies & Shared Service Centers.
Newgen Software has been positioned in the Magic Quadrant for Business Process Management
(BPM) and Enterprise Content Management (ECM). The company has been recognized by
distinguished analyst firms like Frost and Sullivan as a 'Hot Company to Watch for' in their
global ECM Market report in 2009 and by IDC in its exclusive report “Newgen Software: Global
Leader in Business Process Management and Document Management Solutions”.
Management Team:
Mr. Diwakar Nigam
Managing Director
Mr. Diwakar Nigam, the Managing Director of Newgen Software Technologies founded
Newgen in 1992. Mr. Nigam has been an active player at the national software industry as a
founding member of NASSCOM (National Association of Software and Services Companies).
He is also a member of the Anti Piracy Task Group formed by NASSCOM.
Mr. Nigam has been pursuing the goal of building a world-class Product Development Company
ever since his graduation and Newgen is the fulfillment of that goal. Newgen is involved in the
development of Enterprise Content Management and Business Process Management Software
and has made an impact in India and Internationally. Today, Newgen’s client list consists of
some of India’s and the world’s largest Banks, Insurance Companies, BPOs, MNCs and big
corporate houses. Under Mr. Nigam’s dynamic leadership, a team of highly qualified software
professionals develop software, which is totally indigenous.
Prior to forming Newgen, Mr. Nigam, along with a few colleagues, had incorporated (in 1978)
Softek Limited, a product development company specializing in Compilers, Operating System,
Office Productivity tools, etc. He also had a short stint working in the Software R&D of HCL
during the years 1976-78.
Mr. Nigam is a Masters in Technology in Computers Science from the Indian Institute of
Technology, Madras, of the 1976 batch.
Mr. T. S. Varadarajan
Director
Mr. T. S. Varadarajan, Director of Newgen Software Technologies Ltd. is a technocrat and an
entrepreneur with more than 25 years of contribution towards the design and development of
software products of international repute.
Mr. Varadarajan holds a Masters in Technology in Computer Science from I.I.T Madras (1975)
and a Bachelors in Technology from Indian Institute of Science, Bangalore (1973). He represents
the first generation of IT professionals who have contributed towards the proliferation of the IT
industry in India. He is amongst those rare people who have dreamt beyond the frontiers of
conventional thinking towards the creation of a global IT product brand in India.
Earlier in his career, he co-founded Softek Ltd., a company that developed systems software
products like compilers, spreadsheets, databases, word processors, operating systems and also
bilingual versions of the products to cater to the Indian users. "Akshar"- a well-known Hindi
word processor is one such product example. These are still known in the industry for their time-
tested quality and depth.
The ability to visualize future computing needs and the urge to be a technology creator, led to the
establishment of Newgen in 1992. Having co-founded this company in 1992, he has been
overseeing Finance, Processing Services, Operations and certain areas of Software Development.
1.3. Investors Relation:
Newgen is one of the rare software product companies to have backing from leading Financial
Services (Headland Capital Partners, formerly HSBC Private Equity) and Technology (SAP
Ventures) companies. The investments provide for the acceleration of global expansion plans
and continued growth of India's market-leading Business Process Management (BPM) and
Enterprise Content Management (ECM) software vendor.
Newgen Software Receives Investment from SAP Ventures
Speaking on this investment from SAP, Mr. Diwakar Nigam, MD & CEO of Newgen said, 'We
are pleased that SAP Ventures has chosen to invest in Newgen. It is a testimony to Newgen's
Imaging and Workflow products for Business Process Management (BPM). We have many
installations where we complement SAP in the Manufacturing and BFSI market segment. There
are obvious synergies between the products of SAP and Newgen, and the investment will lead to
closer working of the two companies which will help Newgen to grow faster and garner larger
share of fast growing BPM market.
Newgen is one of India's leading software vendors that has managed to establish a global
footprint and we look forward to be part of the Company's continued geographic and product
expansion' said Jai Das, an Investment Partner at SAP Ventures and manages its investments in
India. "The Company has created a very compelling product for automating workflows and for
managing business processes of enterprises in various market segments including BFSI, BPO
and Telecom, which has enabled the company to have significant year-over-year revenue growth.
We hope to help Newgen build on the platform that it has already created.
An integrated Content Management and Business Process Management platform is vital to
successfully automate paper-based workflows and manage the enormous volume of digital
content created,' said Ranjan Das, President & CEO, SAP Indian Subcontinent. "In line with our
focus, I am delighted that SAP India is able to nurture innovation in the Indian IT Sector through
this investment in Newgen by SAP Ventures."
1.4. About SAP Ventures
SAP Ventures invests in innovative and disruptive software and services companies globally. We
pursue opportunities across all stages for outstanding financial return. Our goal is to bring
substantial benefit to all parties by facilitating interaction between portfolio companies and SAP
and its ecosystem of customers and partners. SAP Ventures has a successful track record of
building industry-leading companies by partnering with outstanding entrepreneurs and top-tier
venture capital firms since 1996. For more information, visit www.sapventures.com.
HSBC Private Equity Asia* (now Headland Capital Partners) invests in Newgen Software
In 2008, Newgen announced a significant investment of INR 300 million for a minority stake in
the company by HSBC Private Equity Asia* (now Headland Capital Partners). Speaking on this
investment, Diwakar Nigam, MD & CEO of Newgen said, "Our company has been growing at
the rate of 50-60 percent in products and solutions business over the last three years. We have
been working with more than 30 large BFSI customers on a continual basis. With HSBC* on
board, we look forward to replicating our success in new markets and maximizing shareholder
value through our highly scalable product-based business model.
According to James Savage, Investment Director of HSBC Private Equity Asia*, "Newgen is one
of a few sizeable software product companies in India, which has established a blue chip client
base. Newgen is able to deliver outstanding value to its customers based on the intellectual
property it has developed. The worldwide market for business process management and content
management solutions is expected to experience strong growth over the medium term. We
believe that Newgen is well positioned to benefit from this opportunity. HSBC Private Equity
Asia* will assist Newgen in its business development through our extensive network and reach
in overseas markets.”
1.6. History
1992-1993
Product development initiated with 20 engineers
R&D group constituted for image processing applications
1992-1993
Product development initiated with 20 engineers
R&D group constituted for image processing applications
1996-1997
Imaging & DMS toolkit licensed to Canon
Canon long-term product development initiate
Imaging and workflow implemented at Citibank India
Release of FinFlow & OmniReportsTM products
1998-1999
Newgen switches focus to large scale enterprise products vs. off the shelf products
Development of Javabased multi-tier system for next gen.DMS engine
Release of OmniExtractTM & ImagePrinter
ISO 9001 certification
Software engineering team grows to 250
2000-2001
Newgen repositioned as end-to-end provider of enterprise DMS and
BPM/ ECM product
Release of J2EE-based OmniDocsTM , ASP-based DMS & PDFWriter product
Supply OEM DMS engine licensed to Toshiba
2002-2003
OmniDocsTM ported to Solaris, AIX & Linux
Development of MicroPDF image compression technology
Release OmniFlowTM , XML printer & OmniCapture
Listed amongst Top 10 product companies in India, by Data Quest magazine
CMM Level 4 Certification
2003-2005
Unicode support for OmniFlowTM
Versions launched in Thai, Korean, Japanese languages
Acquired Konica Minolta as SES customer
Newgen emerges as the market leader with 40% market share in Workflow and DMS
survey done by Frost & Sullivan
Acquired customers like HDFC Bank, Max New York Life, RSA, Hutch, Philips and
Indigo (Unilever)
Acquired customers like Sahara Insurance, Bajaj Allianz, Kenya Airways & iGate BPO
2005-2006
CheckFlow product launch
Newgen won the prestigious “Distinguished Application Product Company”award at the
Product Summit: 2005, hosted by NASSCOM, and Indian Institute of Management
Bangalore
Acquires customers like HSBC, Deutsche Bank, SBI, FIC, Bank of Baroda, ING Vysya,
Cathay United Bank, Huanan Bank, Taishin Bank, Lippo Bank, Bank of Tanzania, GHB
and EXL BPO
Filed its first patent
2006-2007
Listed in Red Herring Asia Top 200
Newgen Software wins Frost & Sullivan Market Leadership Award for Document
Management & Workflow software & Services for 2006
Celent recognizes Newgen as a “significant” global Document Management player for
the Banking Sector
Acquired customers like Kotak Mahindra Bank, Bank of America, Abu Dhabi
Commercial Bank, Mashraq Bank, ECO Bank, Asia Financial Holdings, Equinox BPO
Biggest EDMS implementation in the world for a leading insurance company
3 patents filed for image processing
2007-2008
Gartner adds Newgen under "Other Vendors" category in MQ report for BPMS
CMS Watch recognition of OmniFlowTM as a 'true' BPM product" in DMS Suites Report
ISO 27001: 2005 Certification (Information Security Management System)
IDC recognition as a Global Leader in Business Process Management and Document
Management System
Black Book recognition as No.1 Outsourced Software Application
/Engineering/DMS/BPM Vendor in the Wealth Management industry Report
Newgen launches new version of their workflow solution - OmniFlow TM 7.0
2010-2011
Featured in the Magic Quadrants for BPM & ECM, 2010 by Gartner
Release of products Document Processing System, Invoice Processing System and
automatic signature verification
HP becomes Newgen’s first customer on Cloud platform
Release of OD 7.1 and OF 9.1
63 new customers added
IndusInd Bank won silver award for Global Excellence in BPM and Workflow
2011-2012
Newgen positioned in ECM MQ report, Forrecter CCM wave report
Lakshmikumaran and Sridharan won Gold award for global excellence in Adaptive Case
Management
Ecobank won silver award for excellence in workflow and BPM from MEA region
Finalist for global award in Knowledge Management solution conducted by KMWorld
magazine USA
Finalist for best CXO award for egovernanace implementation.
2. SWOT ANALYSIS
SWOT analysis stands for analyzing the Strengths, Weaknesses, Opportunities and Threats
of a certain industry or company.
2.1. STRENGHTS:
Exponential growth.
Skilled Human Resource at low-cost.
Access to infrastructure-optical network and satellite links.
Favorable policies (to some extent) and regulator.
A wide range of products.
Huge infrastructure.
Provision of network flexibility for expansion.
24/7 maintenance support.
Lowest rates.
Versatile, State of Art Latest Technology.
Provision of Redundant/ Backup Links.
Standby Power Arrangements.
Rapid Response Units.
Experienced and Qualified Technical Staff.
Competitor’s Dependency upon NEWGEN Network.
Provision of Alternative Solutions.
International brand name.
2.2. WEAKNESSES:
Quality of services.
Low revenue per user (ARPU).
Customer retention.
No clear strategic direction.
Poor organizational structure.
No research and development programs.
Employee skill inconsistency.
Very low employee morale.
2.3. OPPERTUNITIES:
Huge market size.
Local set manufacturing.
Making technology accessible to all (e.g. broadband).
Removal of international trade barriers.
2.4. THREATS
Recession in economy .
Inconsistent decisions from regulatory authorities.
Political instability, security issues.
Adverse shift in trade policies of Government.
2.5. RECOMMENDATIONS
Sincere and hardworking employees should be recruited.
NEWGEN should established more training centers, if the resources are not up to the
mark then other training centers of any organization should be hired for this purpose.
The most important thing that should be focused while training the employees is
ETHICAL VALUES.
Permanent / Government Employees and old staff should be trained according to the
need.
Previous records of files and all the data should be converted to computerized system
from manual system.
Human Resource department should allocate resources for this computerized system.
Unions worked in NEWGEN should be decreased and controlled by the management.
Discrimination between the old staff who is permanent and the new hiring staff should be
minimize.
Every employee must know their duties and responsibilities, and worked for the benefit
of the Organization.
NEWGEN basically have large number of employees worked in the organization, so
there must be a system to check the performance of each employee.
2.6. CONCLUSION
Human Resource Management can play a vital role in building infrastructure of
telecommunication in Pakistan. There is need to realize the importance of HRM in mind of
NEWGEN’s employees and to train them according to the emerging technologies in the world.
Employees motivation level is also very low in NEWGEN they must work on it for more good
services. There is a lot of discrimination between the old staff and the new hiring staff, old staff
who are permanent they know that even if they work not well and performed not according to the
need of the Organization, no one can easily dismissed them from their jobs. Management must
give them training on ethical values and aware them of new technologies because they still
giving more preference to the manual work then the computerized work. And because of all this
there is a discrimination between the old staff who are permanent and new hiring staff after the
privatization of NEWGEN. This thing should be overcome by the management and if they really
control all these things NEWGEN would really had a bright future and will go further with
success and the performance of the organization must increased.
CHAP 3: Training and Development
In creativity training, trainers often focus on three things:
(a) Breaking away: In order to break away from restrictions, the trainee is expected to (i)
identify the dominant ideas influencing his own thinking (ii) define the boundaries within which
he is working (iii) bring the assumptions out into the open and challenge everything
(b) Generate new ideas: To generate new ideas, the trainee should open up his mind; look at the
problem from all possible angles and list as many alternative approaches as possible. The trainee
should allow his mind to wander over alternatives freely. Expose himself to new influences
(people, articles, books, situations), switch over from one perspective to another, -arrange cross
fertilization of ideas with other people and use analogies to spark off ideas.
(c) Delaying judgement: To promote creative thinking, the trainee should not try to kill off
ideas too quickly; they should be held back until he is able to generate as many ideas as possible.
He should allow ideas to grow a little. Brainstorming (getting a large number of ideas from a
group of people in a short time) often helps in generating as many ideas as possible without
pausing to evaluate them. It helps in releasing ideas, overcoming inhibitions, cross fertilising
ideas and getting away from patterned thinking.
Diversity Training: Diversity training considers all of the diverse dimensions in the workplace -
race, gender, age, disabilities, lifestyles, culture, education, ideas and backgrounds - while
designing a training programme. It aims to create better cross-cultural sensitivity with the aim of
fostering more harmonious and fruitful working relationships among a firm's employees.
The programme covers two things: (i) awareness building, which helps employees appreciate the
key benefits of diversity, and (ii) skill building, which offers the knowledge, skills and abilities
required for working with people having varied backgrounds.
Literacy Training: Inability to write, speak and work well with others could often come in the
way of discharging duties, especially at the lower levels. Workers, in such situations, may fail to
understand safety messages, appreciate the importance of sticking to rules, and commit avoidable
mistakes. Functional illiteracy (low skill level in a particular content area) may be a serious
impediment to a firm's productivity and competitiveness. Functional literacy programmes focus
on the basic skills required to perform a job adequately and capitalise on most workers'
motivation to get help in a particular area. Tutorial programmes, home assignments, reading and
writing exercises, simple mathematical tests, etc., are generally used in all company in-house
programmes meant to improve the literacy levels of employees with weak reading, writing or
arithmetic skills.
The quality of employees and their development through training and education are major factors
in determining long-term profitability of a small business. If you hire and keep good employees,
it is good policy to invest in the development of their skills, so they can increase their
productivity. Training often is considered for new employees only. This is a
mistake because ongoing training for current employees helps them adjust to rapidly changing
job requirements. Purpose of Training and Development Reasons for emphasizing the growth
and development of personnel include Creating a pool of readily available and
adequate replacements for personnel who may leave or move up in then
organization .Enhancing the company's ability to adopt and use advances in
technology because of a sufficiently knowledgeable staff. Building a more
efficient, effective and highly motivated team, which enhances the company's competitive
position and improves employee morale.Ensuring adequate human resources for expansion into
new programs. Research has shownspecific benefits that a small business receives from
training and developing its workers, including: Increased productivity. educed employee
turnover .Increased efficiency resulting in financial gains.Decreased need for supervision.
Employees frequently develop a greater sense of self-worth, dignity and well-being as
theybecome more valuable to the firm and to society. Generally they will receive a greater
shareof the material gains that result from their increased productivity. These factors give them
asense of satisfaction through the achievement of personal and company goals.
3.1. The Training Process
T h e m o d e l b e l o w t r a c e s t h e s t e p s n e c e s s a r y i n t h e t r a i n i n g p r o c e s s :
O r g a n i z a t i o n a l Objectives Needs Assessment Is There a Gap? Training Objectives Select the
Trainees Selectthe Training Methods and Mode Choose a Means of Evaluating Administer
TrainingE v a l u a t e t h e T r a i n i n g T h e p u r p o s e o f f o r m u l a t i n g a t r a i n i n g
s t r a t e g y i s t o a n s w e r t w o relatively simple but vitally important questions:
(1) What is our business? And
(2) Whatshould our business be? Armed with the answers to these questions and a clear vision
of itsmission, strategy and objectives, a company can identify its training needs.
IdentifyingTraining Needs Training needs can be assessed by analyzing three major human
resourceareas: the organization as a whole, the job characteristics and the needs of the
individuals.This analysis will provide answers to the following questions:
3.2. Where is training needed?
What specifically must an employee learn in order to be more productive? Who needs to
betrained? Also, in today's market-driven economy, you would be remiss not to ask
yourc u s t o m e r s w h a t t h e y l i k e a b o u t y o u r b u s i n e s s a n d w h a t a r e a s
t h e y t h i n k s h o u l d b e improved. In summary, the analysis should focus on the total
organization and should tellyou
(1) where training is needed and
(2) where it will work within the organization.Once you have determined where training
is needed, concentrate on the content of thep r o g r a m . A n a l y z e t h e
c h a r a c t e r i s t i c s o f t h e j o b b a s e d o n i t s d e s c r i p t i o n , t h e w r i t t e n narrative of
what the employee actually does. Training based on job descriptions should gointo detail
about how the job is performed on a task-by-task basis. Actually doing the job will
enable you to get a better feel for what is done.
T r a i n i n g G o a l s T h e g o a l s o f t h e t r a i n i n g p r o g r a m s h o u l d r e l a t e d i r e c t l y
t o t h e n e e d s determined by the assessment process outlined above. Course
objectives should clearlystate what behavior or skill will be changed as a result of the
training and should relate tothe mission and strategic plan of the company. Goals should include
milestones to help takethe employee from where he or she is today to where the firm
wants him or her in thef u t u r e . S e t t i n g g o a l s h e l p s t o e v a l u a t e t h e
t r a i n i n g p r o g r a m a n d a l s o t o m o t i v a t e employees. Allowing employees
to participate in setting goals increases the probability of success. Training
Methods The company's history and mission. The key members in the organization.
The key members in the department, and how the department helps fulfill themission of the
company. Personnel rules and regulations. Some companies use verbal presentations
while others have written presentations. Many small businesses convey thesetopics in one-on-
one orientations. No matter what method is used, it is important that thenewcomer understand his
or her new place of employment.Lectures present training material verbally and are used when
the goal is to present a greatdeal of material to many people. It is more cost effective to lecture to
a group than to trainpeople individually. Lecturing is one-way communication and as such may
not be the mosteffective way to train. Also, it is hard to ensure that the entire audience
understands a topicon the same level; by targeting the average attendee you may
under train some and loseothers. Despite these drawbacks, lecturing is the most cost-
effective way of reaching largeaudiences.Role playing and simulation are training techniques
that attempt to bring realistic decisionmaking situations to the trainee. Likely problems and
alternative solutions are presented fordiscussion. The adage there is no better trainer than
experience is exemplified with this typeof training. Experienced employees can describe real
world experiences, and can help in and
learn from developing the solutions to these simulations. This method is cost effective and isused
in marketing and management training.Audiovisual methods such as television, videotapes and
films are the most effective meansof providing real world conditions and situations in a short
time. One advantage is that thep r e s e n t a t i o n i s t h e s a m e n o m a t t e r h o w m a n y
t i m e s i t ' s p l a y e d . T h i s i s n o t t r u e w i t h l e c t u r e s , w h i c h c a n c h a n g e a s t h e
s p e a k e r i s c h a n g e d o r c a n b e i n f l u e n c e d b y o u t s i d e c o n s t r a i n t s . T h e
m a j o r f l a w w i t h t h e a u d i o v i s u a l m e t h o d i s t h a t i t d o e s n o t a l l o w
f o r q u e s t i o n s a n d i n t e r a c t i o n s w i t h t h e s p e a k e r , n o r d o e s i t a l l o w
f o r c h a n g e s i n t h e presentation for different audiences.
3.3. Trainers
I n - h o u s e t r a i n i n g i s t h e d a i l y r e s p o n s i b i l i t y o f s u p e r v i s o r s a n d
e m p l o y e e s . Supervisors are ultimately responsible for the productivity and,
therefore, the training of their subordinates. These supervisors should be taught
the techniques of good training.They must be aware of the knowledge and skills necessary
to make a productive employee.T r a i n e r s s h o u l d b e t a u g h t t o e s t a b l i s h g o a l s a n d
o b j e c t i v e s f o r t h e i r t r a i n i n g a n d t o d e t e r m i n e h o w t h e s e o b j e c t i v e s
c a n b e u s e d t o i n f l u e n c e t h e p r o d u c t i v i t y o f t h e i r departments. They
also must be aware of how adults learn and how best to communicatewith adults.
Small businesses need to develop their supervisors' training capabilities bysending
them to courses on training methods. The investment will pay off in
increasedproductivity.There are several ways to select training personnel for off-the-job training
programs. Manys m a l l b u s i n e s s e s u s e i n - h o u s e p e r s o n n e l t o d e v e l o p f o r m a l
t r a i n i n g p r o g r a m s t o b e delivered to employees off line from their normal work activities,
during company meetingsor individually at prearranged training sessions.There are many
outside training sources, including consultants, technical and vocational schools,
continuing education programs, chambers of commerce and economic developmentgroups.
Selecting an outside source for training has advantages and disadvantages.
Thebiggest advantage is that these organizations are well versed in training techniques, whichis
often not the An effective training program administrator should follow these steps:Define the
organizational objectives. Determine the needs of the training program.Define training goals.
Develop training methods. Decide whom to train. Decide who shoulddo the training. Administer
the training. Evaluate the training program.
3.5 CHANGING JOB DESIGN IN IT COMMUNITY
1.5.1 The California State University (CSU) system is being challenged to meet increasing
demands for educational and administrative services through the innovative use of technology
and human resource systems. Even though funding levels for higher education have been cut in
recent years, public/taxpayer expectations and the demands for quality education, access, service,
and accountability have grown. Technology initiatives within the CSU have resulted in
significant advances and improved technical capabilities and efficiency. Human resource and
organizational systems are also needed to capitalize on and thrive in this rapidly changing work
environment.
3.5.2 In 1991, the CSU began a study to look at alternative work and job design approaches to
meet these challenges. The study focused on the information technology community and how
work processes and activities could be better organized to remove artificial barriers and improve
organizational effectiveness, a process often associated with the term "reengineering." Secondly,
the study focused on developing a job design approach that could adapt to changing skill
requirements and that would promote the continuous acquisition of skills for knowledge-based
employees in information technology. The goal of improved organizational effectiveness and an
orientation towards reengineering and skills guided the development of the proposed job design
approach.
3.5.3 This article begins by identifying several trends that led to the study, then describes the
overall project within the context of an organizational effectiveness equation. A new job design
approach that was proposed as a result of the study is presented, including a new classification
structure and competency dimensions and measures for defining and evaluating positions.
Finally, other supporting systems are described for an integrated human resources approach. The
development phase of the project has been completed, and the CSU anticipates entering into
negotiations with its employee representatives in the near future.
3.5.4 Three trends have had a direct impact on the development of a strategic job design
approach for the information technology community at the CSU: (a) diversification and
convergence of technology, increased demand for educational access and (b) changes in
instructional delivery methods; and changing work place demands and priorities.
3.5.5 The technology demands within higher education lead to a complex and dynamic
computing environment. Academic and administrative computing strategies tend to be at cross-
purposes in terms of defining systems requirements. This has resulted in widely diverse systems
and technology within and across the CSU's twenty campuses. Increasingly, however, campus
systems are becoming more integrated, as data are shared across multiple platforms on a network
"highway" that is linked to external information sources. Networking and desktop computing
have removed traditional boundaries for information access, research, and decision-support
purposes. Data, voice, and video technologies continue to be combined in more interactive and
user-friendly formats.
3.5.6 In terms of educational trends, many institutions offer distance learning using various
transmission media and are incorporating instructional technology into curriculum development.
Students expect guaranteed access to technology and to research databases, and this access has
become an issue of social responsibility.[1] Library and computing functions are becoming
increasingly interdependent in "an infrastructure of scholarly communication" within higher
education.[2] Workplace trends, as presented in Sustaining Excellence in the 21st Century: A
Vision and Strategies for College and University Administration, well represent the outlook for
the CSU. Two key issues are identified:
(1) Economics. There is increasing pressure to constrain administrative costs within the "labor
intensive cost structure" that exists in higher education. Reductions in staff are occurring at the
same time as transaction volume and service expectations are growing.
(2) Decentralization of responsibility. With fewer people and greater access to information,
organizations are moving responsibility for decision-making downward to the point of service.
Work organization is shifting away from job specialization and a task/procedure orientation, to
more generalized job responsibilities focused on outcome and greater participation on cross-
functional teams
(3) Another central workplace trend is the "earning and learning" environment described by the
U.S. Department of Labor in its Secretary's Commission on Achieving Necessary Skills
(SCANS) report. To quote Thomas P. Foley, Secretary of the Pennsylvania Department of Labor
and Industry:"We've changed from the idea of "one skill, one job" to the reality of a range of
skills that have to apply to a number of different kinds of professions. More to the point, workers
must possess a skill that they continually upgrade just to keep pace in the professions they
choose."
(4) The influx of new technology and applications has created a demand for continual learning
and adaptation. Due to the CSU's relatively stable workforce, maintaining skills to keep pace
with changing technology was identified as a critical goal. Knowledge requirements are
expanding to encompass a greater breadth of technologies and subject expertise, as well as
including process-oriented capabilities such as communication and negotiation skills.
3.5.7 The implications of these technological , educational, and workplace trends point directly
to the need to reengineer organizational structures, work design, and processes. Based on these
trends and overall organizational goals, two key objectives were established for a new job design
approach for the CSU: flexibility and skill development. Fundamentally, each campus needs the
flexibility to achieve its goals by distributing work assignments in a way that optimizes its
available skill mix and promotes individual skill development and initiative.
3.6 OBJECTIVES OF STUDY
1.6.1 Following were the objectives of the study:-
1. To enlist emerging HR trends in Indian IT Industry
2. To review literature and research done in this area.
3. To find out lacking areas regarding the HRD in IT sector.
4. To measure the perceptions of IT sector employees in respect of application of HRD in their
organisation.
5. To suggest the measures to fill the gaps and improve motivation level of employees and HR
management in IT industry.
CHAP 4 :Lesson Learnt
4.1 Difficulties In the company
4.1.1 The main features of the employees randomly selected sex-wise, education-wise
and type of functions wise has been provided here in the succeeding paras. The
54 per cent of the respondents were Male and 46 per cent of the respondents
were Female
4.1.2 IT industry requires higher level of education standards, both non-
technical and technical. The education qualification wise distribution of the
employees who agreed for responding to our questionnaire has been given below
in Table 5.1.
Table 4.1
RESPONDENTS PROFILE - EDUCATION-WISE
(%age)
Respondents' Qualification Percentage Of
Respondents
Non-Tech Graduate and Below 11%
Non-Tech Post Graduate 23%
B.Tech/ BCA etc. 34%
M.Tech/MCA Etc. 32%
TOTAL 100%
4.1.3 In the similar fashion the job wise profile of the
respondents has also been compiled and the same is tabulated below in the Figure
5.2. As per Figure the 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.
4.2 WHETHER HR NEEDS OF INDIAN IT INDUSTRY ARE DIFFERENT
4.2.1 Through the Question No.2 of the questionnaire the respondents were
asked to comment whether the HR needs of Indian IT industry are different from
traditional HR Management systems. 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 responses have been tabulated in Table 5.3. 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.
TABLE-4.3
Emerging HR TRENDS OF INDIAN IT INDUSTRY
ARE DIFFERENT
(%age)
Respondents' Observation Percentage Of
Respondents
Yes 69%
No 23%
Can not say 08%
TOTAL 100%
4.3 EFFECT OF NEW COMPENSATION METHODS
4.3.1 The IT industry has been devising newer compensation methods like Profit Sharing/
Stock Options etc. to increase employee welfare and retentively. Whether these
new compensation techniques are positively effecting or not was the key point in
our next question. As per Figure-5.4, 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 CAN NOT SAY. . In the initial stages when IT
Industry was sunrise it was mostly welcomed by the employees and when IT
industry share prices has gone down. It has a negative effect..
4.4 WHETHER IT INDUSTRY HAS POSITIVE ATTITUDE TOWARDFS ITS
EMPLOYEES
4.4.1 In has been found that in many organisations the management ignores the
employees welfare for their profit sake and does not give proper attention towards
employees career and prospects. What is the state of affairs in IT Industry in India
was quizzed from our valued learned respondents. The respondents views are
given below Table 5.5. The results are mixed one. While 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.
TABLE - 4.5
WHETHER IT INDUSTRY HAS A POSITVE
ATTITUDE TOWARDS ITS EMPLOYEES
(%age)
Respondents'
Observation
Percentage Of
Respondents
Yes 43%
No 48%
No comments 09%
TOTAL 100%
4.5 STATE OF GRIEVANCES HANDLING IN INDIAN IT INDUSTRY
4.5.1 The respondents responses to the status of grievances handling mechanism was
through an indirect approach. In the Question No. 5 of the questionnaire the
respondents were to comment upon the positive hypothesis that grievance
handling is done properly in the IT organisation. The five choices provided were
strongly agree, agree, no comments, disagree and strongly disagree. The data
collected is given below in Table-5.6.
TABLE - 4.6
GRIEVANCE HANDLING IN
INDIAN IT INDUSTRY IS PROPER
(%age)
Respondents'
Observation
Percentage Of
Respondents
Strongly Agree 12%
Agree 39%
No Comments 14%
Disagree 26%
Strongly Disagree 09%
TOTAL 100%
4.5.2 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.
4.6 TOP MANAGEMENT AWARENESS
4.6.1 Whether top management awareness about working conditions of the employees
and state of working conditions in the organisation was measured through next
question. Table-5.7 shows the response. 65% of the respondents view that the
top management's are not aware or little aware about the employees working
conditions in the IT organisations Only 6 percent vouched that top
management is very well aware about the nature of working conditions and 18
percent say "Much Aware".
Table 4.7
TOP MANAGEMENT AWARENESS
(%age)
Respondents'
Observation
Percentage Of
Respondents
Not at all aware 20%
Very little aware 45%
Some what aware 11%
Much aware 18%
Very much aware 06%
TOTAL 100%
4.7 EMPLOYEE EMPLOYER RELATIONSHIP IN IT INDUSTRY
4.7.1 Cordial 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 not very encouraging.
Table 4.8
STATE OF EMPLOYEE EMPLOYER
RELATIONSHIP IN IT INDUSTRY
(%age)
Respondents Grading Percentage Of
Respondents
Excellent 14%
Very Good 44%
Satisfactory 28%
Poor 14%
TOTAL 100%
4.7.2 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. Indian IT Industry has very effective employee
employer relationship.
4.8 EMPLOYEES RETENTIVITY IN INDIAN IT INDUSTRY
4.8.1 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. Their opinions in this regard are
presented below in "YES/NO/NO COMMENTS" format in the Figure 5.9.
4.8.2 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.
4.9 HOW TO INCREASE EMPLOYEES RETENTIVITY IN INDIAN IT
INDUSTRY
4.9.1 As has been observed in general and also concluded in previous paras that the IT
sector employees in India are very quickly jumping the employment. So, what the
employers has to do for retaining its professionals was asked from the
respondents. Few suggestions were listed and one column was open ended to
express their any other suggestion. The Table 5.10 list outs all the suggestions. I
TABLE- 4.10
SUGGESTIONS FOR INCREASE RETENTIVITY
IN INDIAN IT INDUSTRY
Respondents' Suggestions Percentage Of Respondents
Increase wages to international levels 22%
Increase foreign postings 36%
Increase profit sharing 10%
More promotions 11%
Others 21%
TOTAL 100%
(%age)
4.9.2 A 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.
4.10 APPLICABILITY OF EXISTING INDIAN LABOUR LAWS IN INDIAN IT
INDUSTRY
4.10.1 "Existing 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 to whether as a
Laws/Rules should be designed for IT Industry:. This hypothesis was presented
to the respondents. They were to respond upto which extent they agree or
disagree. The employees responses have been tabulated below in the Table 5.11.
The comfortable 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 13% has given divergent views. Low
TABLE-4.11
INDIAN IT INDUSTRY REQUIRE
SEPARATE LABOUR LAWS/ RULES
(%age)
Respondents'
Observation
Percentage Of
Respondents
Strongly Agree 57 %
Agree 32 %
No Comments 02%
Disagree 07%
Strongly Disagree 02%
TOTAL 100%
4.11 EFFECTIVENESS OF OLD AGITATIONAL METHODS IN IT INDUSTRY
4.11.1 Whether IT industry can afford old traditional trade union methods of agitations like
Strike or Gherao etc. was also asked from the employees. The question was direct in nature of
Yes or No. As has been listed in Figure 5.12 below, 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 agitational techniques of trade unions are not desired in IT industry.
4.12 EFFECT OF EXCESSIVE COMPETION IN INDIAN IT INDUSTRY
4.12.1 Whether excessive competition in Indian IT sector is harming the overall long term
prospects of employees in this sector The respondents opinion is tabulated below
in Table 5.13. 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.
TABLE - 4.13
EXCESSIVE COMPETITION IS HARMING
EMPLOYEES LONG TERM WELFARE
(%age)
Respondents'
Observation
Percentage Of
Respondents
Yes 53%
No 35%
No Comments 12%
TOTAL 100%
4.13 ROLE OF TRADE UNION IN IT INDUSTRY
4.13.1 The respondents were asked to comment upon whether Indian IT Industry needs a
trade union or management's are looking after the employees interest in the best
possible manner. The Table 5.14 shows the responses in this regard.
Table 4.14
ROLE OF TRADE UNION IN IT INDUSTRY
(%age)
Respondents Grading Percentage Of
Respondents
No Trade Union 21%
Single Trade Union 13%
Multi Trade Union 09%
Only welfare association 57%
Total 100%
4.13.2 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.
4.14 OVERALL ASSESSMENT OF EMERGING HR TRENDS IN INDIAN IT
INDUSTRY
4.14.1 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 below in the Table 5.15. 65% of
the respondents were in positive grading of excellent, very good and good. While 35% gave a
assessment of satisfactory and poor CHAPTER - 5
SUMMARY AND CONCLUSION
5.0 OVERVIEW
6.0.1 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.
6.0.2 ‘Knowledge workers’ has become a buzzword in today’s 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. In the era of cutting-edge technologies, it is this skilled workforce that will
make all the difference.
6.0.3 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 persons each, 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.
QUESTIONNAIRE FOR
PROJECT STUDY ON EMERGING HR NEWGEN
When to use coaching usefully? Coaching could be put to good use when:
an employee demonstrates a new competency
an employee expresses interest in a different job within the organisation
an employee seeks feedback
an employee is expressing low morale, violating company policies or practices or having
performance problems
an employee needs help with a new skill following a formal training programme.
Effective working, obviously, requires patience and communication skills. It involves:
explaining appropriate ways of doing things
making clear why actions were taken
stating observations accurately
offering possible alternatives / suggestions
following up
Personal Profile of the Respondent
1. (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) Your Nature of Job:
(i) Computer Hardware
(ii) Computer Software
(iii) Marketing Services of IT
(iv) HR/ Personnel management
2. Whether you feel that HR needs of Indian IT sector are different from old HR practices.
(Please Tick)
(i) Yes
(ii) No
(iii) Can Not Say
3. Whether new compensating methods being adopted by the various IT companies are positively
effecting the employees welfare?
(i) Positive Effect
(ii) Negative Effect
(iii) No Effect
(iv) Can Not 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.
(i) Strongly Agree
(ii) Agree
(iii)No Comments
(iv) Disagree
(v) Strongly Disagree
6. How much do you think the top management of your organisation 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 Organisation
(i) Excellent
(ii) Very Good
(iii) Satisfactory
(iv) Poor
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. "Existing 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:. Do you agree with
this proposition.
(i) Strongly Agree
(ii) Agree
iii) No Comments
(iv) Disagree
(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 roll of trade union in the IT Industry?
(i) No Trade Union
(ii) Single Union
(iii) Multi Union
(iv) Only welfare association
(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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