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KES SHROFF COLLEGE

:INTRODUCTION SUMMARY:

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.
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. In the era of cutting-edge technologies, it is this
skilled workforce that will make all the difference.
The total human resource strength of the IT industry as a whole stands at 425,609.
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.
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 organization deals with the individuals putting their hard work to meet
the organizations goals. Managing people is the toughest element of any organization than
land, machinery or finances. Every human being has its own degree of preferences, likings
and attitude. So, an HR manager has to take care of all these things in mind while dealing
with the number of people working in the organization.
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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 is an excessive
job demand 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. An HR manager 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 price

:CHAPTER-1INTRODUCTION:
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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. The upcoming competition in India will demand high motivational
level of its employees.
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.
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 also helps in building up their spirit, morale and espirit-de-cops that
becomes strength of the company.
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
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
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, would
enable the organization to hire and retain the services of the best brains in the market.
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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1.1 OBJECTIVES OF STUDY :


Following were the objectives of the study:1. To enlist emerging HR trends in Indian IT Industry
2. To find out lacking areas regarding the HRD in IT sector.
3. To measure the perceptions of IT sector employees in respect of application of HRD in
their organization.
4. To suggest the measures to fill the gaps and improve motivation level of employees and
HR management in IT industry.
5. The goal of improved organizational effectiveness and an orientation towards
reengineering and skills guided the development of the proposed job design approach

1.2 SCOPE OF STUDY :


Following were the scope of the study: To know the emerging HR trends in Indian IT Industry.
Give information about the Indian IT Industry.
To know about the HR problems of Indian IT Professionals.
Give information that whats wrong seems to be the trend.

1.3 LIMITATIONS:
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Employees by and large are reluctant in expressing their feelings/thoughts inthe


Questionnaire and tend to be biased.
The Organization is reluctant to openly share data/information and tend to
keepsensitive data/information confidential which is understandable.
Some personnel in the Organization, irrespective of their seniority, cannot pay
adequate attention to the requests of such studies given the constraints of time and the
work pressures prevalent in the Industry today.
Long term perspective

ROLE OF HR MANAGERS :
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
examplemuch of the HR role is transforming itself. The role of the HR manager must
parallel the needs of his changing organization.
Strategic Partner:-In todays 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 organizationwide business plan and objectives. The HR business objectives are established to support the
attainment of the overall plan and objectives. 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.
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. In this role,
the HR manager provides employee development opportunities, employee assistance
programs, gain sharing and profit-sharing strategies, organization development interventions,
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due process approaches to problem solving, and regularly scheduled communication


opportunities.

INNOVATIVE PRACTICES IN HR :
The Innovative Practices in Human Resources study uncovered 12 practices that are reducing
HR costs and improving service quality to employees. Key findings from this research
included the need for HR managers to streamline processes, lower overhead costs, and enable
their departments to advance from transactional organizations to strategic partners in the
business.
Practices and technologies include:

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

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Outsourcing

Business process reengineering (BPR)

HR TRENDS IN IT INDUSTRY:
HR IT SCENARIO:
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.
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.
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
permanently with you. Normal tenure in any organization is likely to be between two to three
years.

INNOVATION IS THE KEY:


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.
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
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do not matter. Successful business organizations have no choice but to promote the
performers and let non-performers go.
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 must be obviously followed by changes, which may
not necessarily be welcomed by veterans in the organization. But change is the only
constant for guaranteed success.
Points to note: The following points are important and must be properly understood.
People have a great deal of informational knowledge to contribute to the organization.
People are responsible
People desire opportunities to effect change, not just being expected to change.
Organizations need to create awareness amongst their employees about their vision and then
empower them to act on that vision.

Establishing a sense of urgency well ahead of the problem surfacing.

Form inter-functional core group. Encourage the group to work together as a


team.

Plan and create short-term win targets reward employees and recognize
achievers.

Consolidate improvements through a knowledge base driven system and


institutionalize proven new methodologies.

New Paradigms in HR:

Business plans must consider HR issues, focus and adapt.

Corporate goals must factor in individual career growth and personal growth
must be tied to corporate growth and vice versa

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Job responsibilities must facilitate personal development and learning should be


institutionalized with well-established knowledge bases. Capturing experience and making it
available corporate wide should be a permanent feature of an organization.

4 Rs of HR in IT:TABLE:

Recruiting Retaining

Retraining Restructurin

Signing bonus

Retention bonus

Job rotation

Finders Fee

Project pay

Team

Broad

assignments

descriptions

Skill inventories

Flexible

Alumni

Reduct FTE/same

connections

pay

g
job

compensation
Non-techs

Telecommuting

Students

Externs

Competency

programs

development
Flexible jobs
Certification
Interns

Job sharing
Recognition

Positive

problem-

solving spirit

programs

OBSTACLES

Denial (This is and long term)

Misalignment (Ramping up/Ramping down)

Timing

Treating everyone the same

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Navigating the bureaucracy

Demographics

RETENTION FACTORS
1. Quality of boss
2. Direction of department
3. Exposure to new technologies
4. Confidence in the company
5. Job security.

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

SEARCH FOR TOMORROW

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

Increase flexibility

Reduce fixed costs

Reduce administrative effort (Simplify, simplify, simplify)

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Utilize the full range of individual talents

THE CRISIS

Shortage of IT workers

COMPETITION

Compensation stock options, profit sharing, incentives

Alternatives outsourcing

RETAINING

Work environment

Communication forums

Telecommuting

Flexible staffing

Exciting projects

PRACTICES

Focus on value

Financial and human value

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Commitment to core strategy

Linkage between cultures an system

Multi dimension communication

Stakeholders partnerships

Mutual support and collaboration (teamwork)

DEVELOPING

Internship programs

Training programs
Career development programs

LONG TERM SOLUTIONS


Education, government, industry partnerships

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

KEY SUCCESS FACTORS

Understand people

What they want

Long term perspective

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Innovative

Co ordinate approach

Career development

OUT SOURCING:
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
decentralized organizations involves the development of applications specific to a user's
business.
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 organisations 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.
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".
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 low cost and of high value addition, keep it within the
organization, i.e. in-source. If IS high cost and of low value addition, consider outsourcing".
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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.
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. It is estimated that the
quantum of outsourcing may jump to US$ 5 billion and reach as high as US$ 10 billion by
2010 A.D.

IT SECTOR COMPENSATION METHODS :


EMPLOYEE STOCK OWNWERSHIP PLAN Employee Stock Ownership Plan (ESOP):
is a defined contribution employee benefit plan that allows employees to become owners of
stock in the company they work for.
How does ESOP work?
1. The ESOP operates through a trust, setup by the company that accepts tax deductible
contributions from the company to purchase company stock
2. The contributions made by the company are distributed to individual employee accounts
within the trust.
3. The amount of stock each individual receives may vary according to pre-established
formulas based on salary, service, or position.
4.

The employees may cash out after vesting in the program or when they leave the

company. The amount they may cash out may depend on the vesting requirements.

STOCK OPTIONS :
Stock Options:The right to purchase stock at a given price at some time in the future .Stock
Options come in two types:

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1.Incentive stock options (ISOs)in which the employee is able to defer taxation until the

shares bought with the option is sold. The company does not receive a tax deduction for this
type of option.
2.Nonqualified stock options (NSOs ) in which the employee must pay income tax on the

'spread' between the value of the stock and the amount paid for the option. The company may
receive a tax deduction on the 'spread'.
How do Stock options work? An option is created that specifies that the owner of the option
may 'exercise' the 'right' to purchase a companys 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.

MERIT PAY :
Merit Pay is an incentive plan implemented on an institutional wide basis to give all
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. .

GAIN SHARING :
Gain sharing is a technique that compensates workers based on improvements in the
company's productivity.
How does Gain sharing work? A Company shares productivity gains with the workforce.
Workers voluntarily participate in management to accept responsibility for major reforms.
This type of pay is based on factors directly under a workers control (i.e., productivity or
costs). Gains are measured and distributions are made frequently through a predetermined
formula. Because this pay is only implemented when gains are achieved, gain sharing plans
do not adversely affect company costs.
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What are the 'Gains' that are measured?

Increases in production with equal or less effort.

Equal levels of production with less effort.

What are examples of Gain sharing formulas?

Calculate gain in hours: The actual hours worked minus the expected hours (for the given

level of output) equal the gain in hours.

PROFIT SHARING :
Profit Sharing is an incentive based compensation program to award employees a percentage
of the company's profits. How does Profit sharing work? The company contributes a portion of its
pre-tax profits to a pool that will be distributed among eligible employees.
The amount distributed to each employee may be weighted by the employee's base salary so that
employees with higher base salaries receive a slightly higher amount of the shared pool of profits.
Generally this is done on an annual basis How to Choose an Employee Stock Plan for Your
Company:-Many companies we encounter have a pretty good idea of what kind of employee
ownership plan they want to use, usually based on specific needs and goals.

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Chapter-2 REVIEW OF LITERATURE:


Rosabeth Moss Kanter said, Human beings are good raw material, they become assets
when you train them to increase their knowledge and skills". She added that only a few
organisations really train people to make them a success.
Seconding this, Mr Peters pointed out how most organisations are not serious about
developing people. They spend on an average 26.3 hours per person per year on training.
A surgeon, a pilot or an athlete on the other hand spends 10-15 times more on training.
Tom Peters said, We have transitioned from an asset-based economy to a talent-based
economy. The new definition of lay-off is untalented go talented stay. Leaders must
realise that talent is equal to brand". His new theory is EVP which means "Employee
Value Proposition".
William Taylor, editor and managing partner of the Fast Pace magazine, said, "There is no
going back from back from dotcoms". He was of the opinion that there is a merger taking
place between computers and human beings. According to a study carried out by
Nasscom , there were more than 10,000 IT staff last year holding around 18 million
ESOPs valued at roughly Rs 12,000 crore($3 billion) at February '00 prices.
PramaNath
India's growth story has drastically slowed down due to the cascading effect of the slow
global economy. Organisations are suffering, employees are confused and HR the
profession has been unofficially assigned the unenviable task of retention, higher
productivity, even helping increase of sales revenue by using a synthesis of the tools at its
disposal and innovative thought leadership
People and knowledge retention during these tough times will propel the talent
management domain in the forefront and ensure it doesn't remain consigned to a folder in
the laptop of the talent manager after the annual talent review ritual. From using reliable
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tools in hiring and assessing employees to developing high potential talent, creating a
strong leadership bench and work on a robust succession planning strategy, talent
management will become an empirically substantiated document for the business and HR
leaders to retain people and curb knowledge transfer outside the organisation.
The role of the Human Resources Department has changed dramatically over the past 30
years and will become increasingly more strategic in nature in the future, said a leading
light of the HR community in the recent 2006 Annual Conference and Exposition of HR
practitioners in Washington, DC.

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:Chapter 3 CONCEPTUAL FRAMEWORK:


HR PROBLEMS OF INDIAN IT PROFESSIONALS
OVERVIEW OF PROBLEMS
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.
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 human resources in a
planned manner and also software solutions which tended to
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.
A number of higher level courses have also been started mainly through private
organizations besides the existing government (State/Central), university and autonomous
institutions. There are about 500 private engineering colleges besides IITs, RECs,
universities, colleges offering courses such as MCA, M.Sc., M.E., and M.Tech. In view of the
apparent demand that appears to be exaggerated, most of the programmes (barring a few by
government institutions and IITs) are very expensive, almost beyond the reach of a middleclass 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
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
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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.
Even those software professionals, who are offered good financial packages, spend their
earnings on expensive lifestyles, vehicles, and credit card syndrome and find themselves
disenchanted on all fronts including the intellectual front. It should also be a cause for
concern to project beyond the present software boom as to what happens to all these if the
opportunities decline. The scenario appears to be quite fluid with a predominant western bias
in all the activities concerning software profession with scores of Indian boys getting lured
and sucked into the vortices created by the opportunities in this area.

Advantages :Thesuggested processes in 4 and 5 above can be expected to have the


following significant 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 moulded 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.
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SIGNIFICANCE OF STUDY:
Optimum Utilization of Human Resources
Healthy work environment Due to study of HR trends in IT Industry we find the
deficiencies and helps in creating the healthy working environment. It helps to build
good employee, relationship so that individual goals aligns with organizational goal.
The study focused on the information technology community and how works
processes and activities could be better organized to remove artificial barriers and
improve organizational effectiveness, a process often associated with the term
"reengineering.

RESEARCH PROBLEM STATEMENT:


Significant problem areas, which may be contributing to the present scenario and can be
addressed, can be identified as given

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:
i. 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.
ii. Opportunities to lessen the monotony and improve interpersonal relationship

Recruitment process - Aptitude tests could be conducted by reputed institutes like IITs/
private organizations/HR agencies for prospective professionals preferably ``on-line'' like
GRE, GMAT etc. or physically at regular intervals and scores are given.

:Chapter4 RESEARCH DESIGN AND METHODOLOGY:

4.1 RESEARCH METHODOLOGY:


"A research is a careful investigation or inquiry especially through search for new facts in any
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branch of knowledge; it is a systematized effort to gain more knowledge"

(A)Types of research
Types of Research selected for this project is EXPLORATARY .In exploratory research
design we focused the objective of the study, method of data collection and then select the
sample. After collection the data we analyses and at last interoperate the final result & finds
the best solution of particular problem. In Quantitative research is based on the measurement
of quantity or amount. It is applicable to phenomena that can be expressed in terms of
quantity

(B) Sampling methodology


Sample Size

- 20 respondents.

Sample Unit-Employees were selected among the executives and staff working in various IT
organizations.
Sampling Area-Malad to GoregoanIT sector
Sampling Technique - Random Sampling technique.

(C)Method of data collection


Primary data has been used in the form of Questionnaire 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. The pilot survey on ten randomly selected
respondents was undertaken. Then the questionnaire was modified accordingly

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Secondary data has been used from various internet sites such as motorola.com &
google.com has been used.

FINDINGS:
As per the survey result Indian IT sector feel different HR needs.
New compensation techniques in Indian IT Industry are giving positive effect.
Employees Grievances are not properly handled in these Industries.
Good relationship between employee and employer in Indian IT Industry.
Indian IT companies are unable to retain its employees due to most attractive avenues
outside.

Excessive competition in Indian IT sector is harming the overall long term prospects of
employees in this sector.

Shortage of IT workers in India.


More employees say that negative attitude of IT sector towards its employees.

:Chapter5 DATA ANALYSIS AND INTERPRETATION:

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.
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What employees perceive about the emerging HR trends of the IT organisation has been
measured.
To measure the success and failures of emerging HR trends of Indian IT Industry a structured
questionnaire is prepared for this purpose.
The questionnaire included both open ended and close-ended questions. The questionnaire
used is placed at Appendix "I".
The procedure adopted for data collection

was interview

with the employees

randomly

selected from IT organization to the extent possible and also through mail. .
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

1. Whether Indian IT Industry needs a trade union or management's?

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Interpretation The respondents were asked to comment upon whether Indian IT Industry
needs a trade union or managements are looking after the employees interest in the best
possible manner. 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.

2.

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


overall long term prospects of employees in this sector?

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Interpretation: Whether excessive competition in Indian IT sector is harming the overall


long term prospects of employees in this sector the respondents opinion is that 53 percent of
the respondents has replied in Yes to this question. While 35% has a negative viewpoint&
12% Respondents no reply.

3. Whether IT industry can afford old traditional trade union methods of agitations
like Strike or Gherao etc.?

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Respondents observations with % - Yes (67%)

No (28%)

No comments

(05%)

Interpretation: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. 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. What the HR managers of Indian IT sector should do to increase the retentivity rate
of its employees?

Respondents' Suggestions with %: Increase wages to international levels (22%), Increase


foreign postings (36%), Increase profit sharing (10%), More promotions (11%), Others (21%)

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Interpretation: A 22% of the respondents has suggested increasing 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.

5. 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?

Respondents observations with % - Yes (61%)

RECENT TRENDS OF HRM IN IT SECTOR

No (23%)

No comments (16%)

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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.

6. What is the state of employee employer relationship in Your Organisation?

Respondents grading with %: Excellent (14%)

Very Good (44%) Satisfactory (28%)

Poor (14%)

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Interpretation: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. 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.

7. Whether IT Industry has a Positive attitude towards its employees?

Respondents observations with % - Yes (43%)

RECENT TRENDS OF HRM IN IT SECTOR

No (48%)

No comments (9%)

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Interpretation: It 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 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

8."The grievances of the employees in Indian IT sectors are handled properly". To what
extent do you with this statement.

Respondents' Observation with % : Strongly Agree (12%) Agree (39%) No


Comments (14%) Disagree Strongly (26%) Disagree (09%)

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Interpretation: The respondents


mechanism was through

responses to the status of

grievances

handling

an indirect approach. In this Question 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. 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.

9. Whether you feel that HR needs of Indian IT sector is different from old HR
practices?

Respondents observations with % - Yes (69%)

No (23%) no comments

(8%)

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Interpretation:Through the Question 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
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 behavior.

:Chapter 6 CONCLUSION AND RECOMMENDATIONS:

SUGESSATIONS:
It is found that in these Industries employees grievance are not properly handled so
for retaining the employee first of all employee grievance are handled.
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Indian IT Industry want that they provide the attractive avenues to its employee for
retaining good employee.
Provide the training & development program time to time to employee for meeting
the competition.
The main problem of Indian IT sector is hoe they retain the employee , so Indian IT
sector want that they provide the job security to employee.

CONCLUSION:
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.
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.
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
organization.
China is also entering this area vigorously and Government of India must help Indian
It industry to meet this challenge.

:B I B L I O G R A P H Y:
BOOKS REFERENCE:

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Burack, E.R. & Mc. Nicholos, T.J. Human Research Planning: Technology, Policy and
& Change, The Comparative Administration Research Institute of the Centre for
Business and Economic Research, College of Business Administration, Kent State
University, 1973.

Edwards, John et.al., "Manpower Planning", John Wiley, New York..,1983

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


Communication Service.

Kothari, CR." research Methodology Methods and tech- niques", Wiley Eastern
Limited.

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


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

Websites Reference
www.google.com
www.wikipedia.com
www.investopedia.com
www.kml.com
www.businesslink.gov.com

www.altavista.com
www.yagoohoogle.com

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