REPORT REPORT ON “ HR PRACTICES AND ORGANISATIONAL STRATEGI ES IN IT INDUSTRY ” Submitted in fulfillment for the award ofMaster of Business Administration (G.B. Technical University, Lucknow) 2009-2011 Submitted To: Submitted By MR. D.N. PANDEY POOJA SINGH DIRECTOR GENERAL M.B.A. II YearROLL NO- 0920370056 1
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8/3/2019 Hr Practices and Org Strategies in It Sector
1.0.1 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. The upcoming competition in India, will demand high
motivational level of its employees.
1.0.2 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 and strength of people.
1.0.3 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 organisational 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 also help in building up their spirit, morale and espirit-de-cops which becomes strength of the company. The culture of excellence thus nurtured
contribute to growth with stability and continuous improvement in productivity.
1.0.4 Finding the right man for the job and developing him into a valuable resource
is an indispensable requirement of every organisation. Human resources are capable of
enlargement i.e. capable of providing an output that is greater than the sum of the inputs.
Proper recruitment helps the line managers to work most effectively in accomplishing the
primary objective of the enterprise. In order to harness the human energies in the service or
organisational goals, every manager is expected to pay proper attention to recruitment,
selection, training, development activities in an organisation. Proper promotional avenues
must also be created so as to motivate employees to peak performance. Thus, personnel
functions such as manpower planning recruitment, selection and training, when carried out
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properly, would enable the organisation to hire and retain the services of the best brains in the
market.
1.0.5 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.
1.1 ROLE OF HR MANAGERS
1.1.1. And Some industry commentators call the Human Resources function the last
bastion of bureaucracy. 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 well, but was frequently viewed as
a road block by much of the rest of the organization. While some need for this role
occasionally remains you would no want every manager putting his own spin on a sexual
harassment policy, as an example—much of the HR role is transforming itself. The role of the
HR manager must parallel the needs of his changing organization. Successful organizationsare becoming more adaptable, resilient, quick to change direction, and customer-centered.
Within this environment, the HR professional, who is considered necessary by line managers,
is a strategic partner, an employee sponsor or advocate, and a change mentor.
1.1.2 Strategic Partner:-In today’s organizations, to guarantee their viability and
ability to contribute, HR managers need to think of themselves as strategic partners. In this
role, the HR person contributes to the development of and the accomplishment of the
organization-wide business plan and objectives. The HR business objectives are established to
support the attainment of the overall 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
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positions, hiring; reward, recognition, and strategic pay; performance development and
appraisal systems; career and succession planning; and employee development.
1.1.3 Employee Advocate:-As an employee sponsor or advocate, the HR manager
plays 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. Fostering effective methods of
goal setting, communication, and empowerment through responsibility build employee
ownership of the enterprise. The HR professional helps establish the organizational culture
and climate in which people have the competency, concern, and commitment to serve
customers well. In this role, the HR manager provides employee development opportunities,
employee assistance programs, gain sharing and profit-sharing strategies, organizationdevelopment interventions, due process approaches to problem solving, and regularly
scheduled communication opportunities.
1.1.5 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. Knowing how to link change to the strategic needs of the
organization will minimize employee dissatisfaction and resistance to change. 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. To promote
the overall success of his organization, he champions the identification of the organizational
mission, vision, values, goals, and action plans. Finally, he helps determine the measures that
will tell his organization how well it is succeeding in all of this.
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Leaders according to him are living individuals, whom people can smell, feel and touch. Their
passion for work must be infectious.
1.2.5 Another aspect of leadership if the decision to introduce fun in the work place.
Research shows that this reduces absenteeism and builds stronger, deeper and longer lasting
relationships. It appears out of every 100 Fortune companies in the last decade, 69 are dead
and only 31 are alive. In a Forbes Magazine study of around 100 companies from '17 to '87,
only 39 companies were found to survive. Management of Change:-Research proves that
many change models don't consider the human experience during change. The overriding
concern seems to be to downsize. It was found that most change processes go through four
fundamental stages.
• People try to resist or deny change
• They adapt, participate in the change
• They attempt to add value
• The culmination or formation of a new status-quo
1.2.6 A number of presentations revealed that leaders who initiate change must do so
with one foot in the future and the other planted in past values. Forgetting tradition must can
devalue existing strengths. The success of a change process depends on the skill of thefacilitator to create a participatory process to enlist the support of people and address the issue
of grief.
1.2.7 E-Learning :- Organisations like Ford Motor, Hewlett Packard, Intel and IBM
are using e-learning to increase the knowledge of their people. Companies like Fordstar even
manage time differences between countries while conducting virtual class rooms, chats,
demos, presentations to communicate new concepts, product details, core values, issues of
governance and corporate communities.
1.2.8 CEO's are talking to their people about new ideas and enlisting their support
through forums and message boards. This is changing the way people behave and work. The
advantages of e-learning are many: It is self-paced, flexible, less expensive, modular and has a
huge reach.
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1.4.1 Most Human Resource professionals are familiar with the concept of strategy.
There is much more concentration and focus today on the strategic outcomes of human
resource activity than ever before. The area of compensation is no exception.
1.4.2 Pay for performance systems are becoming more and more popular as senior
managers reach beyond the use of compensation systems to deliver pay. There is far more
interest in more closely linking the reward mechanisms to the achievement of corporate
objectives. Motivation for superior performance is the goal.
1,4.3 In experience, most organizations will profess to a "pay-for-performance"
philosophy as a keystone of their compensation system. Such a system requires solid
grounding in a clear and documented link between performance and salary increases.
Unfortunately, the link between individual performance and pay is frequently nonexistent -
"merit" pay is a hollow concept in this regard.
1.4.4 A merit system demands that managers be willing to make distinctions in merit
increases based on performance. However, several factors get in the way of this happening.
First, the annual salary change is usually a small percentage. Giving the better performer 2%
more than the cost of living has little motivation or recognition attached to it. Similarly giving
the poor performers 2% less than the cost of living increase is not that much of a penalty. So
many managers don't make that distinction - it is too much hassle. So everybody gets the same
increase.
1.4.5 Second, most performance appraisal systems are after-the-fact appraisals. Inother words, at appraisal time, which is usually toward the end of the year, managers are
required to evaluate the performance of their staff. It means sitting down and trying to
reconstruct what each staff member did, capturing it in a non-threatening way, communicating
the evaluation without a fuss and finally, making a merit increase recommendation. Sound
like a familiar pattern? It is a process that repeats itself year after year.
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1.4.6 The end result is usually a lot of avoidance behavior. Managers avoid the
appraisal process like the plague. Although employees profess to want to "know where they
stand" they often take issue with the appraisal. Besides, they don't listen to the evaluation,
they wait until the penny literally "drops". "What is my rating and how much do I get?" is a
constant theme in merit systems where salary decisions are tied so closely with the appraisal
process.
1.4.7 You might well ask is there any way out of this mess? The answer is
fortunately yes. Organizations that are the best and want to separate themselves from the rest,
are turning away from the merit system and toward an annual incentive system, particularly
for middle and upper management positions but increasingly for teams and individuals lower
down in the organization as well.
1.4.8 They are adopting a system of annual incentive bonuses linked directly to the
achievement of corporate and individual objectives in three specific areas. The areas are
corporate revenues and gains, cost containment and behavioral changes. The first two areas
are quantitative and the third area, which is gaining in importance, is qualitative in nature, and
has a great deal to do with building managerial and individual competence.
1.4.9 Why Is This Transition Occurring? :-Well, there are many challenges facing businesses today and these challenges are driving them to find better ways of linking pay and
performance to the achievement of corporate results..
1.5 CHANGING JOB DESIGN IN IT COMMUNITY
1.5.1 The California State University (CSU) system is being challenged to meetincreasing 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.
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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.
1.5.6 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/procedureorientation, 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
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2.0.1 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’.
2.0.2 What is this thinking on your knees? Normally as the HR person you know
what the situation is and operate from there. A repositioning is required in your decision
process with questions like why, how and when and not just what. At this point you operate
on your knee i.e. with far more dynamism and with a lot more effectiveness than thinking on
your feet.
2.0.3 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. The question is not about what else you can do 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 permanentlywith you. Normal tenure in any organisation is likely to be between two to three years.
2.1 INNOVATION IS THE KEY
2.1.1 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.
2.1.2 The key to employee longevity :-Today’s most successful organisations
recognize that to fuel growth and sustain a competitive advantage, they must make recruiting,
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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
3.2 LONG TERM PERSPECTIVE
3.2.1 These tests can be conducted at the end of 10+2 level or B.Sc. level also and
train the candidate with or without stipend in courses where he could get
admission for his degree. This will help in decreasing the pressure on
engineering education as otherwise the skills acquired by the candidate at a
great cost in branches other than computer sciences are wasted and lost for
good if employed by the software industry.
3.2.2 It may be a good idea to have a National Test for Software Talent similar to
science talent test which can be sponsored by NASSCOM and such other
interested groups
3.2.3 The idea of forming a cooperative society by small firms may prove to be
beneficial as the facilities and manpower can be shared optimally. While
otherwise they may face the problems of lack of adequate manpower (belowthe critical mass level) because of less attractive pay and perks they are able to
offer.
3.2.4 Renowned organizations like IITs, IIMs and MNCs, and can play a catalytic
roll in streamlining the processes for an efficient HRD in this vital area of
software manpower which is a national resource.
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4.1.2 How do Stock options work? An option is created that specifies that the owner
of the option may 'exercise' the 'right' to purchase a company’s stock at a
certain price (the 'grant' price) by a certain (expiration) date in the future.
Usually the price of the option (the 'grant' price) is set to the market price of the
stock at the time the option was sold. If the underlying stock increases in value,
the option becomes more valuable. If the underlying stock decreases below the
'grant' price or stays the same in value as the 'grant' price, then the option
becomes worthless.
4.2 MERIT PAY
4.2.1 Merit Pay is an incentive plan implemented on an institutional wide basis to giveall employees an equal opportunity for consideration, regardless of funding
source. The merit increase program is implemented when funds are designated
for that purpose by the institution's administration, dependent upon the
availability of funds and other constraints. .
4.2.2 Advantages OF Merit Pay :-
· Allows the employer to differentiate pay given to high performers.
· Allows a differentiation between individual and company performance.
· Allows the employer to satisfactorily reward an employee for
accomplishing a task that might not be repeated (such as implementation of
new systems).
4.3 GAIN SHARING
4.3.1 Gainsharing is a technique that compensates workers based on improvements in
the company's productivity.
4.3.2 How does Gainsharing work? A Company shares productivity gains with the
workforce. Workers voluntarily participate in management to accept
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but they're not sure what it might be. This article will start you down the path to
choosing and implementing the plan or plans best suited to your company.
4.5 ASSESSMENT OF PLANS FOR BROAD-BASED
EMPLOYEE OWNERSHIP
4.5.1 Let us begin by quickly reviewing the main possibilities for broad-based
employee ownership. A "broad-based" plan is one in which most or all
employees can participate.
4.5.2 An employee stock ownership plan (ESOP) is a type of tax-qualified
employee benefit plan in which most or all of the assets are invested in stock of the employer. Like profit sharing and 401(k) plans, which are governed by
many of the same laws, an ESOP generally must include at least all full-time
employees meeting certain age and service requirements. Employees do not
actually buy shares in an ESOP. Instead, the company contributes its own
shares to the plan, contributes cash to buy its own stock (often from an existing
owner), or, most commonly, has the plan borrow money to buy stock, with the
company repaying the loan. All of these uses have significant tax benefits for
the company, the employees, and the sellers. Employees gradually vest in their
accounts and receive their benefits when they leave the company (although
there may be distributions prior to that). Over 8 million employees in over
11,000 companies, mostly closely held, participate in ESOPs.
4.5.3 A stock option plan grants employees the right to buy company stock at
a specified price during a specified period once the option has vested. So if an
employee gets an option on 100 shares at $10 and the stock price goes up to
$20, the employee can "exercise" the option and buy those 100 shares at $10
each, sell them on the market for $20 each, and pocket the difference. But if
the stock price never rises above the option price, the employee will simply not
exercise the option. Stock options can be given to as few or as few employees
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as you wish. Perhaps 7 to 10 million or more employees in thousands of
companies, both public and private, presently hold stock options.
4.5.4 An employee stock purchase plan (ESPP) is a little like a stock option
plan. It gives employees the chance to buy stock, usually through payroll
deductions over a 3- to 27-month "offering period." The price is usually
discounted up to 15% from the market price. Frequently, employees can
choose to buy stock at a discount from the lower of the price either at the
beginning or the end of the ESPP offering period, which can increase the
discount still further. As with a stock option, after acquiring the stock the
employee can sell it for a quick profit or hold onto it for awhile. Unlike stock
options, the discounted price built into most ESPPs means that employees can profit even if the stock price has gone down since the grant date. Companies
usually set up ESPPs as tax-qualified "Section 423" plans, which means that
almost all full-time employees with 2 years or more of service must be allowed
to participate (although in practice, many choose not to). Many millions of
employees, almost always in public companies, are in ESPPs.
4.5.5 Section 401(k) plan is a retirement plan that, unlike an ESOP, is designed
to provide the employee with a diversified portfolio of investments. Like an
ESOP, however, a 401(k) plan is a tax-qualified plan that generally must
include all full-time employees meeting age and service requirements. The
employees can choose among several or more choices for investments, and the
company may make a matching contribution. Perhaps several million
employees in a few thousand companies participate in plans with a heavy
company stock component; company stock may be an investment choice for
the employees and/or the means by which the company makes matching
contributions. 401(k) plans may be combined with ESOPs (these are called
"KSOPs"), where the company match is an ESOP contribution.
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4.6.1 A study has found that employee ownership companies have lower workers'compensation insurance rates than comparable non-employee ownership firms.
Leslie Hakala authored the study. She began the project as an NCEO research
intern and completed it for a thesis requirement at Harvard University. The
study was unable to ascribe a specific causal relationship between employee
ownership and lower workers' compensation costs, but it did find that these
costs declined as employee ownership plans matured.
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4..6.2 Background:- In 1989, the last year for which we have data, U.S. employers
spent over $48 billion on workers' compensation costs. These costs grew at
16.9% per year in the mid-1980s. Cost increases were partly attributable to
increased benefits mandated by state workers' compensation insurance reforms.
At the same time, as employer provided health care coverage has declined,
more employees sought to cover health problems under workers'
compensation. Many people believe there has been increased fraud as well.
4.6.3 Workers' compensation programs vary from state to state, but in
most programs, insurers attempt to provide employers with an incentive to limit
safety problems by developing an experience rating. The ratings compare an
individual firm's experience with other firms of its type. If the rating is better
than average, insurance premiums will be lower; if it is worse, they will go up.
4.6.4 In this study, we looked only at California firms. In California,
employers are assigned a "manual rate," an insurance rate expressed as a
percentage of every $100 of payroll. Rates are assigned to all companies based
on their industry classification. These rates are then adjusted for companies with
a premium above a certain level according to their actual experience. This means
smaller and less risky firms are not assigned an experience modification rating.The experience modification rate is set for each year based on three years of past
experience, excluding the most recent year (because data are generally not yet
available). The experience modification rate is determined by looking at actual
experience modified by a size weighting factor. For larger firms, the adjustment
may be very small; for smaller firms, actual experience is given a lower weight
because a single incident can skew results dramatically. This weighted
experience rating now becomes the "experience modification" figure.
4.6.4 Theoretically, the average experience modification factor for any
business classification should be 100%. A company with a good record would
have a rating under 100%; a bad record would rate higher. These numbers are
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4.7.4 Theoretically, an employee who exercised his option now, would have
to buy at the exercise price, sell at the current market price, and pay out the
difference.
4.8 ESOPs HARDLY BENEFICIAL -
4.8.1 At the height of the IT euphoria in the markets, those employees
saw their company's scrips scaling new heights, they could not benefit as the
ESOP's had 1-2 year lock-in periods, and could not be sold. The lock-in period,
also known as the vesting period in industry jargon, in the period during which
the employee cannot convert his or her option into shares. To make matters
worse, some companies has specified that the option had to be exercised, that isconverted into shares, within a specified time frame after the lockin period
expired. For instance, this was one year in the case of Silverline, and 10 in the
case of Aptech.
Table 4.1
ESOP IN INDIAN CONTEXT
Recent ESOPs
No of
Shares
(Lakh)
Plan Exercise Plans
(Rs)
Vesting
Period
(Yrs)
Current Price
(Rs)
NIIT 18.1 Aug '04 1,593 1 162
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5.5 STATE OF GRIEVANCES HANDLING IN INDIAN IT INDUSTRY
5.5.1 The respondents responses to the status of grievances handling mechanism was
through an indirect approach. In the Question No. 5 of the questionnaire therespondents 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 - 5.6
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%
5.5.2 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 tocomment. 39 percent agree that The grievance handling IN Indian IT industry
is done properly and remaining 26 percent disagree with it.
5.6 TOP MANAGEMENT AWARENESS
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5.9.2 A 22% of the respondents has suggested to increase the wages to internationallevel 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.
5.10 APPLICABILITY OF EXISTING INDIAN LABOUR LAWS IN INDIAN
IT INDUSTRY
5.10.1 "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
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6.0.5 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 every where, 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.
6.0.6 These fastness of services and higher level of education/training standards are not easy
to manage by the organisations concerned. As we already know that Human Resource
Management of the organisation deals with the individuals putting their hardwork to meet the
organisations goals. Managing people is the toughest element of any organisation than land,machinery or finances. Every human beings has its own degree of preferences, likings and
attitude. So, HR managers has to take care of all these things in mind while dealing with the
number of people working in the organisation.
6.0.7 Different type of employees/workers recruited for different level of working has to be
managed in different styles. The hundreds years of organisational management experience has
been converted into a standard personnel management and industry and service organisations
are following these HR techniques for their organisational management. Due to availability of
written down procedures and rules by the learned managers, it was felt that HR managing
was not so typical.
6.0.8 But, emerging HR trends of Information Technology industry can not 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 labour laws it is not possible to meet the
ever-growing international competition in the IT services.
6.0.9 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
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education and professional training required for this industry. Secondly, there is 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 has 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.
6.1 Finding
6.1.1 As given out in Chapter 1, 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 a structured 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
6.1.2 The 54% of the 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.
6.1.3 The respondents were asked to comment whether the HR needs of Indian IT industry aredifferent 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.
6.1.4 The 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.
6.1.5 As per 48% of the respondents IT organisation has more concern for profit motive than
employees welfare. While 43% were not agree to this proposition
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6.1.6 51 percent of the respondents strongly agree/agree to the statement that grievance are
handled properly in the Indian IT industry. While 33% think otherwise.
6.1.7 Whether top management awareness about working conditions of the employees and
state of working conditions in the IT organisations, 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 4 percent vouched that top management is very well aware about the
nature of working conditions and 16 percent say "Much Aware".
6.1.8 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 very
encouraging. 58 percent of the respondents has graded it very good and above. While 42
percent consider it satisfactory and below.
6.1.9 Whether 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 profitsharing and 11% suggested more promotions. 21% of the other suggestions included lateral
induction directly institutions and better HR management.
6.1.10 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:. 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.
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6.1.11 Whether excessive competition in Indian IT sector is harming the overall long 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..
6.1.9 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.
6.1.10 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
6.2 CONCLUSION
6.2.1 Hence, it can be concluded that Emerging HR trends of Indian It industry are quite
different from the old economy industry. India 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.Hence, the Indian Government must allow the Industry to meet international competition and
desired environment in respect of Labour Laws and financial rules must be liberalized for this
Indian IT Industry. Moreover, HR 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 organisations China is also entering this area vigorously and Government of
India must help Indian It industry to meet this challenge.
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12. Shadecor George W, " Statistical Methods" The IOWA State University Press, AMES,
IOWA, USA (6th edition)
13. Silvera, D.M., "Human Resource Development", 1988, The Indian Experience.Higher
Education and IT:
14. Ehrmann, Stephen C. "Reaching Students, Reaching Resources: Using Technologies to
Open the College." _Academic Computing_, April 1990, pp. 10-34.
15. Penrod,James I., and Michael G. Dolence"Concepts for engineering Higher Education."
_CAUSE/EFFECT_, Summer 1991,
16. 5 Mark J. Wallace, Jr., "Rewards and Renewal: Competitive Advantage throughWorkforce Effectiveness," Paper presented at American Compensation Association National
Conference, Anaheim, California, 1993.
17. Helen Murlis and David Fitt, "Job Evaluation in a Changing World," _Personnel
Management, May 1991, pp. 39-43.
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