Project Report ON Role of HR Department in IT industry

Submitted in requirement of fulfillment of MBA degree of

GGSIPU, New Delhi

Submitted By Name Enrolment No : : Monika Singh 03715603910 4th Sem

Semester/Batch :

Northern India Engineering College

(Affiliated to GGSIPU) FC-26, Shastri Park, New Delhi-110053

DECLARATION

I, Monika Singh enrollment no.03715603910 do hereby certify that the Research Project entitled Role of HRD in IT Industry submitted in requirement of fulfillment of MBA degree is an authentic record of my own work, under the guidance of Ms. Kamayani, of Northern India Engineering College, Fc-26, Shastri Park, New Delhi.

This is to further certify that I have not submitted this Project Report to any other Institute for the award of any other degree.

(Signature)

NAME Enrollment. No. Batch

Monika Singh 03715603910 MBA 4th Semester

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Date

ABSTRACT

Human resource is a relatively modern management term having been coined in the 1960s. the origins of the function arose in those organizations which introduced 'Welfare management' practices and also in those that adopted the principles of 'Scientific management.

Since 1990 due to liberalized government policies, Indian scenario began to change. Human resource became one of crucial driver for development and change. As the viewpoint of management towards its employees began to change, role and

contribution of human resource as a talent pool also become so vital that most of the organizations started to focus their vision and mission statements on the people who work for them.

With the boom in the technology sector in 2000, newer and newer ways of attracting, recruiting and managing tenant in the companies also started to emerge. This paper tries to identify various trends which came into existence as a result of technology revolution in the country and make a comparison between pre and post liberalization HR trends in IT industry.

1.0 INTRODUCTION
Human Resource

Human Resource is a term used to describe the individuals which comprises the workforce of an organization, although it is also applied in labor economics, for example, business sectors or even whole nations. Human Resource is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the

management of individuals (i.e. the human resources). This function title is often abbreviated to the initials 'HR'.

Human resource is a relatively modern management term having been coined in the 1960s. The origins of the function arose in those organizations which introduced 'welfare management' practices and also in those that adopted the principles of 'scientific management. The use of the term, 'human resources' by organizations to describe the workforce capacity, is available to devote to the achievement of its strategies. In the simplest terms, the objective of an organization's human resource management strategy is to maximize the return on investment from the organization's human capital and minimize financial risk. Human Resources seeks to achieve this by aligning the supply of skilled and qualified individuals, and the capabilities of the current workforce, with the ongoing and future business plans and requirements of the organization in order to maximize return on investment and seeks to secure the future survival and success of the entity. In ensuring such objectives are achieved, the human resource function purpose in this context is to implement the organizations human resource requirements effectively but also pragmatically, taking account of legal, ethical and as far as is practical in a manner which retains the support and respect of the workforce. The Human Resources function may set strategies and develop policies, standards, systems and processes to implement these strategies in a whole range of areas for which the following would be typical of a wide range of organizations.

1. Recruitment and Selection (Resourcing)

2. Organizational design and development.

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3. Business transformation and change management

4. Performance, conduct and behavior management

5. Industrial and employee relations

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

7. Compensation, rewards and Benefits management

8. Training & development (Learning management)

Implementation of such policies, processes or standards may be directly managed by the HR function itself, or the function may indirectly supervise the implementation of such activities by managers, other business functions or via third-party external partner organizations.

HUMAN RESOURCE MANAGEMENT TRENDS

In organizations, it is important to determine both current and future organizational requirements for both core employees and the contingent workforce in terms of their skills/technical abilities, competencies, flexibility etc. The analysis requires consideration of the internal and external factors that can have an effect on the resourcing, development, motivation and retention of employees and other workers.
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The external factors are those largely out-with the control of the organization and include issues such as the economic climate, current and future trends of the labor market e.g. skills, education level, government investment into industries etc. On the other hand internal influences are broadly within the control of the organization to predict, determine and monitor, for example the organizational culture underpinned by management behaviors (or style), environmental climate and the approach to ethical and corporate social responsibilities. In order to know the business environment in which any organization operates, three major trends should be considered: Demographics It is the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc. Diversity It refers to the variation within the population/workplace. Changes in society now mean that a larger proportion of organizations are made up of "babyboomers" or older employees in comparison to thirty years ago. Advocates of "workplace diversity" simply advocate an employee base that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation, etc. Skills and qualifications - As industries move from manual to more managerial professions, so does the need for more highly skilled graduates. If the market is "tight" (i.e. not enough staff for the jobs), employers will have to compete for employees by offering financial rewards, community investment, etc. HR TRENDS IN PRE-LIBERALIZATION PHASE In 1990 due to liberalized government policies of various countries the human resource started floating from one country to another this led to diversification of workforce and cross culture took place as a result employees from one nation migrating to another nation and bringing their culture with them this led to mixed organization culture so the HR professional has to play major role in coordinating the workforce of different
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culture in an organization. Evolution of Personnel management started in 19th century at that time there was a boom in industrialization which leads to increase in franchising and influence of trade unions and harshness of industrial condition called for the better of industrial condition.

HR TRENDS IN POST-LIBERALIZATION PHASE Corporate India has come a long way since Independence. Today Indian companies have spread themselves across the globe and are moving to a borderless world. Similarly post liberalization and globalization a large population of Indians have become a part of the multinational and foreign units. There is constant need to develop capabilities, leverage them to ensure the growth and success of an organization and at the same time add value to an organization. The key players who have served as facilitators are the Human Resource professionals who have moved beyond their administrative role to emerge as a strategic business partner. Their role has become very critical in providing radical solutions to organization success. Today they no longer work in independent silos, but have aligned themselves with the strategic goals. With the changing market trends HR today is faced with several challenges and people management issues in this talent short market. Human resource professionals need to think differently today and further experiment varied processes & methodologies benefiting the human capital and the organization at large.

EMERGING HR TREND IN INDIA

A look at the trends in managing people in this dynamic industry reflects that Attracting, Managing, Nurturing talent and Retaining people has emerged to be the single most critical issue in lieu of the enormous opportunities spun off by the market.
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The new avatar of talent is the knowledge professional who is innovative, business savvy, quick on the uptake, has an instinctive ability to network, and possessing unbridled ambition. They are propelled by an urge to experiment, scan new avenues that can spur their creativity. The knowledge professional will gravitate to an organization that is flexible, has strong values, a robust performance ethic and provides challenging work on latest technology.

This has led to companies proactively taking measures on three fronts. First, companies create an organizational ambience where talent can bloom. Second, they put in place systems that help unleash their potential and third, they build a reward and recognition mechanism that provides value for people.

HR TREND IN INFORMATION TECHNOLOGY INDUSTRY

Technology constantly generates unexpected consequence. The simple ability to send information anywhere immediately, at minimal cost has so many ramifications. The most obvious of the effects being in the reach and speed of
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dissemination of information. The Human Resource trend in Information technology is discussed in this study.

Three significant growth trends in Corporate India are now pushing Hr Manger to look towards technology for solution. First an explosion in CEO Level searches and hires by Indian companies. People like Director of Tata Sons Alan Rosting, Ranbaxy CEO Brian Tempest, and Managing Directors of Indian Hotels Raymond Bickson are familiar examples. Second, many companies are searching for middle and entry-level talent. Tata Consultancy plans to hire 800 people in the US this year, mostly off campuses. Third, Indian companies are inheriting a large number of employees through global acquisitions. For example, Tata Motors gained 1,000 global workers through acquisition in Korea and Spain. And Dr. Reddy added 340 workers through a Mexican acquisition in November.

In this scenario- Role of HRM in integrating employees into the organization with speed ensuring high levels of performance becomes more critical than ever. And its is technology in the form of HR systems that is aiding the HR department in doing this today, keeping pace with the growing needs of Indian business.

Challenges that the HR function in India faces:

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1. The first and foremost challenge that HR function in India faces is to convert the abundant population pool into useful human resource.

2. Training and development of human resource to match ever changing industry demands requires HR to develop new and innovative ideas that suit individual as well as industry criteria.

3. Employee motivation and satisfaction is another area of concern for the HR today. HR needs to realize that monetary needs are not the only drive for an individual and that a sense of belongingness must be imbibed in employees.

4. With the increase in number of job options available nowadays, the HR function must take care that they hire those people who believe in long-term commitment to the organization. The HR then must take up the challenge of retaining them by developing retention techniques like Holiday plans fun-at-work etc.

5. Because of cutthroat competition, HR in India also faces the task of building competitive advantage for the company over national and international competitors.

6. The growing importance that companies are nowadays giving to cost-cutting has posed HR with the challenge to minimize expenditure on HR not compromising on the productivity.

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7. Since right-sizing has been a growing trend in Indian organization, the HR now faces the task of identifying and retaining the key employees of an organization and letting go those that do not suit its future requirements.

8. HR also faces the challenge of creating a balanced organization that originates from mergers and acquisitions. HR needs to assimilate those policies that are mutually agreeable to the companies being merges as well as profitable for the new organization. It also needs to take care about the organizational structure of the merged organization.

9. Globalization poses HR with challenges such as expatriation and repatriation. HR needs to train employees that leave their nation for fulfilling a foreign assignment. It also needs to provide such employees with adequate moral support and assure them of job security on their return.

10.With multinational organizations on the rise, HR needs to focus on issues such as cross-cultural training so that problems that can arise because of differences in international professional values can be diminished.

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Emerging concept of 4 Rs among Human Resource Managers:

4Rs in IT
Recruiting Signing bonus Finders Fee Alumni connections Non-techs Students Interns Retaining Retention bonus Project pay Reduce FTE/same pay Telecommuting Competency Externs Job sharing Recognition programs development Certification Positive problemsolving spirit Skill inventories Flexible jobs Retraining Job rotation Team assignments Flexible compensation programs Restructuring Broad job descriptions

Best HR Practice in IT industry

Recruitment Management Workforce Planning Induction Management Training Management Performance Management Compensation & Benefits
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Attendance Management Leave Management Benefits Management Overtime Management Pay slip Distribution Timesheet Management Employee Information/ Skill Management Grievance Redressal Employee Survey Exit Interviews & Process Health & Safety

1.0 HR CHALLENGES IN IT INDUSTRY HR challenges to be faced in the Indian IT industries are as follows:

1. Encouraging Quality and Customer focus 2. Up-gradation of Skills through Re-training 3. Employee Retention 4. Workforce Retention and Motivation 5. Attracting the Best Talent 6. Compensation and Reward 7. Being at the best place to work with 8. Coping with the Demand-Supply Gap 9. Integrating HR strategy with Business Strategy
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1.1 INNOVATIVE PRACTICES IN HR

Internet and intranet employee services Strategic human resources Centralized HR departments and call centers 360-degree performance appraisals HRIS systems Employee self-service Voice response systems (VRUs) Resume scanning and Internet recruitment Kiosks Automated time and attendance systems Team policies and development Outsourcing Business process reengineering (BPR)

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Literature Review
HUMAN RESOURCE MANAGEMENT
Human resource management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end, that individual, Organizational and social objectives are accomplished

EVOLUTION IN HRM
During the past half century, there has been an evolution from Personnel Management to Employee/Industrial Relations to Human Resource Management. The head of a company's HR department has moved from a transaction-based role, reporting to an administrative manager, to being a member of senior management, reporting to the senior line executive and participating in the executive decision process.

DIVERSIFICATION IN HRM
Interesting to see what hrds deal with now a days in the organizations hiring and firing employees creating organizational charts shaping corporate culture after a merger or acquisition managing employee communications settling employee disputes creating benefits programs navigating government regulations dealing with legal issues such as sexual harassment and occupational safety setting up policy and programs for measuring performance compensating ,recognizing, and training employees
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 Success of every business enterprise depends on its human resource. Money, material and machines are inert factors; but man with his ability to feel, think, conscience and plan is the most valuable resource. At the same time human elements are most difficult to be inspired, controlled and motivated. Growth of an enterprise is vital for the economic development of the country. This is possible only by maintaining the enthusiasm and motivation of the employees, which is vital for carrying out the operations in most efficient manner. The most successful companies, all over the world have designed their business policies to achieve higher productivity by using potentiality 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 help in building up their spirit and morale which becomes strength of the company. The culture of excellence thus nurtured contributes to growth with stability and continuous improvement in productivity.

The human resource management is very crucial in respect of

information technology services than other manufacturing or marketing enterprises. The IT services are technical in nature and at every stage the human touch is involved. Hence it is well motivated and devoted manpower which is very much essential for the success of IT industry.

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 Finding the right man for the job and developing him into a valuable resource is an indispensable requirement of every organization. Human resources are capable of providing an output that is greater than the sum of the inputs. Proper recruitment helps them to work most effectively in accomplishing the primary objective. In order to harness the human energies in the service or organizational goals, every manager is expected to pay proper attention to recruitment, selection, training, development activities in an organization. Thus, personnel functions such as manpower planning recruitment, selection and training, when carried out properly, enable the organization to hire and retain the services of the best brains in the market.

1.0 ROLE OF HR MANAGERS

The role of Human Resources is changing as fast as technology and the global marketplace. Traditionally, the role of the Human Resource professional in many organizations has been to serve as the systematizing, policing arm of executive management. In this role, the HR professional served executive agendas. HR Department was viewed as administrative overhead. HR processed payroll, handled benefits administration, kept personnel files, and other records, managed the hiring process, and provided other administrative support to the business. Those times have changed. The role of the HR manager must parallel the needs of his changing organization. Successful organizations are becoming more adaptable, resilient, quick to change direction, and customer-centered. The positive result of these changes is that HR professionals have the opportunity to play a more strategic role in the business. The challenge for HR managers is to keep up to date with the latest HR innovations technological, legal, and otherwise. There is a need to know about the current HR challenges, and how to most-effectively manage them in your workplace.
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1.0.1 Strategic Partner:-In todays organizations, to guarantee their viability and ability to contribute, HR managers need to think of themselves as strategic partners. HR person contributes to the development of and the accomplishment of the organization-wide business plan and objectives. The tactical HR representative is deeply knowledgeable about the design of work systems in which people succeed and contribute. This strategic partnership impacts HR services such as the design of work positions, hiring; reward, recognition, and strategic pay; performance development and appraisal systems; career and succession planning; and employee development.

1.0.2 Employee Advocate:-As an employee sponsor or advocate, the HR 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. HR manager provides employee development opportunities, employee assistance programs, gain sharing and profit-sharing strategies, organization development interventions, due process approaches to problem solving, and regularly scheduled communication opportunities.

1.0.3 Change Champion:-The constant evaluation of the effectiveness of the organization results in the need for the HR professional to frequently champion change. Both knowledge about and the ability to execute successful change strategies make the HR professional exceptionally valued. The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. He also sponsors change in other departments and in work practices. helps determine the measures that will tell his organization how well it is succeeding in all of this.

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3.1 HR IT SCENARIO

3.1.1 The web is altering the HRD landscape beyond recognition. The key to corporate success in the fast changing information era is thinking on your knees.

3.1.2 The employees are like gypsies, on the move all the time. They camp at some location, enhance their skills, responsibility levels and move on. This is particularly true of the professional from Software Industry. Opportunities are plenty and the next job opening is only a mouse click away.

3.1.3 The question is not about to retain an employee but it is about making him productive, while he is with you. The value addition will then happen for both the employee as well as the employer resulting in a win-win situation. This means that the new strategy calls for the recognition that no employee is expected to be permanently with you. Normal tenure in any Organizations is likely to be between two to three years.

3.2 INNOVATION IS THE KEY

3.2.1 Information

technology and Internet have changed several equations.

Reaching out to the world market place is no more the challenge in achieving corporate victories. Out thinking the competition at electronic speed is the key to winning corporate battles. The corporate success is sum total of entrepreneurship practiced by your staff.

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3.2.2 The key to employee longevity :-Todays most successful Organizations recognize that to fuel growth and sustain a competitive advantage, they must make recruiting, hiring and retaining top talent, as the Organizations major thrust area. Competent people deliver the rest dont matter. Successful business Organizations have no choice but to promote the performers and let nonperformers go.

3.2.3 Organizations recognize that that their ability to gather, manage, analyze, distribute information and transform themselves into a learning organization will provide continuity and ensure for them their leadership role. Systematic organizational learning should be central corporate philosophy. Learning, must be obviously followed by changes, which may not necessarily be welcomed by veterans in the Organizations. But change is the only Constant for guaranteed success.

3.4 OBSTACLES

Denial (This is long term) Misalignment (Ramping up/Ramping down) Timing Treating everyone the same Navigating the bureaucracy Demographics

3 2.3.6

THE CRISIS

Shortage of IT workers

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WHAT OTHERS ARE DOING Pooling recruitment efforts Increasing freedom at the dept level (on-the-spot hiring, broad banding, etc.) Recruiting/retaining students Identifying tech skills in all jobs/people (Skill Inventories/assessment) Sharing staff

2.3.6

COMPETITION Compensation stock options, profit sharing, incentives Alternatives outsourcing

2.3.3 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

RETENTION FACTORS Quality of boss Direction of department Exposure to new technologies Confidence in the company Job security Challenging work Location Access to capital resources Caliber of co-workers Empowerment Department leadership Ability to influence department success
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2.3.4

TAKING THE LEAD

See ourselves as problem-solvers Develop critical skills and competencies in ourselves, then others Build compensation around results not tasks; competencies, not seniority Involve everyone. Constantly align and balance resources to meet changing needs

2.3.5

SEARCH FOR TOMORROW Attract, retain and reward the best performers (Encourage all to be the best) Increase flexibility Reduce fixed costs Reduce administrative effort (Simplify, simplify, simplify) Utilize the full range of individual talents

2.3.7

ATTRACTING Recruiting sign on bonuses Relocation incentives Recruiters Reduced cycle time for hiring Campus/ job fairs / referrals/ internet

2.3.10

DEVELOPING Internship programs Training programs Career development programs

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2.3.8 RETAINING Work environment Communication forums Telecommuting Flexible staffing Exciting projects

2.3.9

PRACTICES Focus on value Financial and human value Commitment to core strategy Linkage between culture an system Multi dimension communication Stakeholders partnerships Mutual support and collaboration ( teamwork) Risk and innovativeness Passion

2.3.12

KEY SUCCESS FACTORS

Understand people What they want Long term perspective Innovative Co ordinated approach Career development I

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2.3.11

LONG TERM SOLUTIONS Education, government, industry partnerships Curricula: technical skills and career skills ( teamwork and communication)

2.4 2.4.1

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 decentralised Organizations involves the development of applications specific to a user's business.

2.4.2

Outsourcing is becoming a strategy for forward thinking IS managers. It is no longer just a means for reducing costs, but a tool for adding value to business. It enables Organizations to concentrate on their core business, carry out business re-engineering and provide information that is valid, timely and adequate to assist decision making at the management level and quality and cost control at the middle and lower levels.

2.4.3

As a result, outsourcing has gradually grown beyond the traditional idea of "having a third party running the data centre". It has come to mean, "any use of an outside contractor to replace or extend in-house resources".

2.4.4

Outsourcing is closely linked with corporate strategy, since it must support the Organizations' major initiative in using IS. It should enhance and add value to the business. A rule of thumb to start and gain experience is, "if IS is low cost and of high value addition, keep it within

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the Organizations, i.e. in-source. If IS is high cost and of low value addition, consider outsourcing". 2.4.5 In the past few years, whenever Organizations around the world have outsourced to India, the Indian software companies have substantially helped to cut costs in software development projects or MIS environments, while maintaining high quality. Moreover, all these cost and quality advantages are coupled with the use of state-of-the-art technologies. 2.4.6 In 2004-05 more than US$ 2500 million worth of software development work was outsourced to India (The total software exports from India during the year was US$ 4085 million). This was 56% higher than outsourcing orders in 2003-04.

HR PROBLEMS OF INDIAN IT PROFESSIONALS

2.0

OVERVIEW OF PROBLEMS

2.1

The IT revolution is sweeping the world, particularly the western world in for nearly a decade now, creating enormous employment opportunities in this area. India joined the bandwagon well in time and smoothly though it is yet to entrench itself strongly in terms of corporate identity and significant share of global revenues in IT.

2.2

Our main contribution seems to be in the less glamorous areas of value addition, maintenance, Y2K, quality assurance and customization of existing packages. The sudden eruption of opportunities in this area left no time for development of

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human resources in a planned manner and also software solutions which tended to be more ad hoc than being assured of quality.

2.3

A number of higher level courses have also been started mainly through private Organizations besides the existing government (State/Central), university and autonomous institutions.. In view of the apparent demand that appears to be exaggerated, most of the programmers are very expensive, almost beyond the reach of a middle-class student. Yet candidates and their parents strain themselves financially to pursue the courses hoping to get an attractive job (financially) which remains a mirage by and large. The problems are further compounded by a lack of proper teaching faculty in most colleges and franchises.

2.4

With the enormous opportunities for employment, entrepreneurship with low capital investment and low gestation period for turning profitable, higher returns per employee and large return on investment/EPS, sustained encouragement from government, a very large number of organizations - large, medium, small have been established. Correspondingly a large number of training establishments and cyber cafes have come up, most of which are in the cities and towns to cash in on the enthusiasm of the urban middle class.

2.5

Except in well-established institutions, job-placements are poor. Even those trained in reputed institutions find their jobs monotonous, leading to depression. Jobs offered by the software industry have demonstrated the above factors as they are able to carry out the projects with persons of any background and levels of attainment, but with a few months training either prior to employment or a short training during probation.
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2.6

Despite these deficiencies, students prefer software jobs mainly with an eye on the pay-package and urban locations. The employee- retention period even in good companies has been shrinking and is found to be three to six months. The companies also try to devise methods to make their employees almost captive with surety bonds, bank guarantees, employee's stock option (ESOP) and housing facilities, among others. There does not appear to be any respectable ethics even among companies as well as the employees in this type of free for all market. To go abroad and become rich has become the motive of most of the employees even if the job does not offer any intellectual satisfaction. The manufacturing and hard-core engineering sector has also shrunk in terms of job opportunities and attractiveness.

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3.1

MAIN PROBLEM AREAS

Recruitment process:-Without going into the deficiencies of the present practices, the following suggestions are made to improve the process in terms of efficiency, availability of manpower and equity to all the aspirants irrespective of the fact where they got educated. The various steps of the proposed approach are as follows: Based on scores and preferences of the candidates (career counselling), companies can ask for a video clip for subsequent interview if required. Interviews can also be conducted simultaneously either physically or over the phone or by video conference and selections completed. Once selected and the candidate joins the organizations, all member organizations should adopt a code of conduct such that the candidates stays at least for a period of one year. Small companies can form some kind of a cooperative society wherein software professionals' services can be tapped and steer clear and manpower shortage. The selection can be conditional that he acquires certified skills in the required areas either through training in house or through approved training agencies and establishments.. This will also ensure that there is a focus on proper training and optimal deployment of time, effort and finances. The selection process can thus be continuous and commensurate with the requirements thus avoiding idle inventory. There can be general norms of pay packages depending on the reputation of the companies (classifying them as A, B, C, D by any reputed management institute like IIM etc.) with the ratio of maximum pay within reasonable and realistic limits.

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Post employment care: - The companies/organizations should take adequate interest in the career development of the employee by suitable HRD approaches which should include the following: Opportunities for creative work in the first phase particularly for those who are bright, and have an aptitude and come with a good pedigree say from IITs. Opportunities to lessen the monotony and improve interpersonal relationship and mixing and group activities. Periodic rotation of the rolls and jobs if possible. Opportunities for retraining and upgrading the skills. Conducting effective career development programs regularly. Incentives like ESOP, lucrative assignments and challenging projects, opportunities of higher education. Make the employee more versatile with wider perspective and flexible for easy deployment in areas needing strengthening. Encouraging simplicity and excellence.

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3.1.3 i. ii. iii. iv. v.

Advantages:Cost effective and efficient process. Proper deployment of skills optimally. Idle employment can be minimized. Retention can be improved. Particularly useful for small firms which can also operate in the cooperative society mode.

vi.

The candidate's skills are molded to suit the needs of the job and need not waste time, money and efforts.

vii.

Equitable opportunities to all aspirants irrespective of location, pedigree and background.

viii. ix.

Reduces the mushrooms of training shops with inadequate faculty. This may also give the manufacturing and core engineering sector jobs reasonable chance to attract willing and bright candidates.

x.

The process is ideally suited for candidates to plan their careers with adequate preparation in core areas.

xi.

The process also enables a realistic assessments of needs and demands regularly and meeting them even at short notices.

xii.

The aptitude tests can become richer and more representative over a few years and as the question bank becomes larger and random on-line questioning can be introduced which is more objective like GRE, GMAT

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4. RESEARCH METHODOLOGY
4.1

Research design
The design of research study is exploratory in nature. Exploratory research is a type of research conducted for a problem that has not been clearly defined. -The study was exploratory in nature. All published and unpublished data available on the subject matter was consulted. Interview and discussions were held with the various executive/ Managers/ staff employed in IT sector. -The HRD functions/ activities being undertaken in different IT organizations were also studied. Primary and secondary data available with these organizations was also used for this project study.

4.2

Research instrument
The survey was based on structured questionnaire. The questionnaire was mainly based on objective type close-ended question, but few open ended questions were also included. In order to measure the employees perceptions of emerging HR trends in different IT organization, the survey was undertaken. The survey was based on structured questionnaire. The questionnaire was mainly based on objective type close-ended question, but few open ended questions were also included.

4.3

Method of sampling
Probability sampling method is used for the study. It is also known as random sampling.
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4.4

Sample size of study

100 persons working in Indian IT Industry interacted to study this topic. Hence the sample size of the study is 100. The final questionnaire was administered in person to the extent possible and through mail if needed. The 100 respondents were selected among the executives and staff working in various IT organizations. The convenient random sampling technique was used for the selection of the respondents.

4.5

The sample
Firstly, the pilot survey on ten randomly selected respondents was undertaken. Then the questionnaire was modified accordingly, if desired. The final questionnaire was administered in person to the extent possible. Finally, the results of the survey has been presented in Tabular form, analyzed and interpreted to meet the required needs of this project study and presented in Report form.

4.6

Data Collection

Primary data
More emphasis is given a primary source of data and its analysis for maintaining the accuracy, reliability and for good result. Personal interview method is used for collecting information through questionnaire.

Secondary data
Secondary data is collected from referring Books, Files, Record, Booklet and Websites.
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2.

SURVEY ANALYSIS HR TRENDS

Survey Background HR management gets best out of its employees to meet the organizations goals. And employees are the best judge of the HR policies of any organizations. IT sector is fast growing industry in India and HR requirements of Indian IT Industry are quite different from traditional industrial sectors. A major characteristic of modern socioeconomic development has been the increasingly dominant role of service sector .and IT belongs to service sector. So, its HR needs must also be properly identified.

Indian IT sector is contributing a large in employment and foreign exchange. A developing country like India can ill afford continued conflict ridden; rigid and litigation oriented Industrial Relations. What employees perceive about the emerging HR trends of the IT organizations has been measured.

To measure the success and failures of emerging HR trends of Indian IT Industry a structured questionnaire was designed for this purpose. The questionnaire included both open ended and close ended questions. Procedure adopted for data collection was interview with the employees randomly selected from IT organizations to the extent possible and also through mail. The responses given by the respondents were recorded on the questionnaire. The views expressed by the respondents have been analyzed in the succeeding paragraphs. About 100 respondents were selected by convenient random sampling technique.

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5.1

RESPONDENTS PROFILE Table 5.1.1 RESPONDENTS PROFILE - EDUCATION-WISE No. of Respondents Percentage Of Respondents Male Female TOTAL 54% 46% 100%

Female 46%

Male 54%

Interpretation: The main features of the employees randomly selected sex-wise, education-wise and type of functions wise has been provided here. The 54 percent of the respondents were Male and 46 per cent of the respondents were Female.

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Table 5.1.2 RESPONDENTS PROFILE - EDUCATION-WISE Respondents' Qualification Number Of Respondents Non-Tech Graduate and Below Non-Tech Post Graduate B.Tech/ BCA etc. M.Tech/MCA Etc. TOTAL 11 23 34 32 100 Percentage Of Respondents 11% 23% 34% 32% 100%

Non-Tech Graduate and Below 11% M.Tech/MCA Etc. 32%

NonTech Post Graduate 23%

B.Tech/ BCA etc. 34%

Interpretation: The chart shows the educational qualification wise distribution of the employees who agreed for responding to our questionnaire. IT industry requires higher level of education standards, both non-technical and technical.
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Table 5.1.3 RESPONDENTS PROFILE JOB PROFILE-WISE Respondents' Job profile Number Of Respondents Software Professional Computer Hardware Marketing Services of IT HR and Personnel Management TOTAL
HR and Personnel Management 13%

Percentage Of Respondents 48% 23% 16% 13% 100%

48 23 16 13 100

Marketing Services of IT 16%

Software Professional 48%

Computer Hardware 23%

Interpretation: IT industry is dominated by the software professionals and next computer hardware and marketing services of IT are sharing the other half. Only 13 percent are working in HR and Personnel Management area. Hence, the HR needs of IT industry must look after the software professionals at priority.

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5.2

Whether HR Needs Of Indian It Industry Are Different TABLE-5.2 Emerging HR trends of Indian IT industry Respondents' Observation Yes No Can not say TOTAL Number Of Respondents 69 23 08 100 Percentage Of Respondents 69% 23% 08% 100%

Can't say 8%

No 23% Yes 69%

Interpretation: It was a direct question in Yes/NO/No comments format and IT professionals selected for survey were asked to tick one of the choices as mentioned. The majority of respondents (69%) view that HR needs of IT industry are different from old economy sector and HR managers in IT industry has to keep this into mind. Being highly educated employees are very sensitive in pride and behaviour.
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5.3

EFFECT OF NEW COMPENSATION METHODS Table 5.3 EFFECT OF NEW COMPENSATION TECHNIQUES

Respondents' Observation Positive Effect Negative Effect No Major Effect Cant Say TOTAL

Percentage Of Respondents 46 19 26 9 100

Number Of Respondents 46% 19% 26% 9% 100%

No Major Effect 26%

Can't Say 9% Positive Effect 46% Negative Effect 19%

Interpretation: The IT industry has been devising newer compensation methods like Profit Sharing/ Stock Options etc. to increase employee welfare and retentively. 46% of the employees opined that newer compensation methods has a positive effect in IT industry while 19% said that it has a negative effect on employee, welfare. 26% view that it has no major effect and 9 percent has replied in cant say
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.5.4

WHETHER IT INDUSTRY HAS POSITIVE ATTITUDE

TOWARDFS ITS EMPLOYEES Table 5.4 IT INDUSTRY HAS A POSITVE ATTITUDE TOWARDS ITS EMPLOYEES Respondents' Observation Yes No No comments TOTAL
No comment 9% Yes 43% No 48%

Number Of Respondents 43 48 09 100

Percentage Of Respondents 43% 48% 09% 100%

Interpretation: It has been found that in many Organizations the management ignores the employees welfare for their profit sake and does not give proper attention towards employees career and prospects. 48% of the respondents' replied in negative and 43% gave a positive reply. So, there is a profit motive operating more than employees proper welfare management in Indian IT Industry.
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5.5

STATE OF GRIEVANCES HANDLING IN INDIAN IT INDUSTRY TABLE - 5.6 GRIEVANCE HANDLING IN INDIAN IT INDUSTRY IS PROPER Respondents' Observation Strongly Agree Agree No Comments Disagree Strongly Disagree TOTAL Number Of Respondents 12 39 14 26 09 100 Percentage Of Respondents 12% 39% 14% 26% 09% 100%

Strongly Disagree 9% Disagree 26% No Comment s 14%

Strongly Agree 12%

Agree 39%

Interpretation: Only 12 respondents strongly agree to the statement and similarly a small number of 9 respondents strongly disagreed with this. Only 14 percent have nothing to comment. 39 percent agree that the grievance handling in Indian IT industry is done properly and remaining 26 percent disagree with it.

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5.6 Whether top management awareness about working conditions of the employees and state of working conditions in the organization. Table 5.6 TOP MANAGEMENT AWARENESS Respondents' Observation Not at all aware Very little aware Somewhat aware Much aware Very much aware TOTAL Number Of Respondents 20 45 11 18 06 100 Percentage Of Respondents 20% 45% 11% 18% 06% 100%

Very much aware 6% Not at all aware Much 20% aware 18% Very little aware 45% Somewhat aware 11%

Interpretation: 65% of the respondents view that the top management's are not aware or little aware about the employees working conditions in the IT Organizations Only 6 percent vouched that top management is very well aware about the nature of working conditions and 18 percent say "Much Aware".

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5.7

EMPLOYEE EMPLOYER RELATIONSHIP IN IT INDUSTRY Table 5.7 STATE OF EMPLOYEE EMPLOYER RELATIONSHIP IN IT INDUSTRY Respondents Grading Excellent Very Good Satisfactory Poor TOTAL Number Of Respondents 14 44 28 14 100 Percentage Of Respondents 14% 44% 28% 14% 100%
Excellent 14% Poor 14% Satisfacto ry 28% Very Good 44%

Interpretation: Cordial employee employer relationship is very essential in the upcoming highly competitive economy. 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.

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5.8

Whether Indian IT Industry Is Able To Retain Its Employees Table 5.8 Retention of Employees Respondents' Observation Yes No No Comments TOTAL Number Of Respondents 23 61 16 100 Percentage Of Respondents 23% 61% 16% 100%

No Commen ts 16%

Number Of Respondents
Yes 23% No 61%

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.

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5.9

HOW TO INCREASE EMPLOYEES RETENTIVITY IN INDIAN IT INDUSTRY TABLE- 5.9 Suggestions For Increase Receptivity In Indian It Industry

Respondents' Suggestions

Number Of Respondents

Percentage Of Respondents 22% 36% 10% 11% 21% 100%

Increase wages to international levels Increase foreign postings Increase profit sharing More promotions Others TOTAL

22 36 10 11 21 100

More promotion s 11%

Others 21%

Increase wages to internatio nal levels 22% Increase foreign postings 36%

Increase profit sharing 10%

Interpretation: 22% of the respondents has suggested to increase the wages to international level to increase employees retentively in Indian IT industry. 36% want more foreign postings, 10% suggest increase profit sharing and 11% suggested more promotions. 21% of the other suggestions included lateral induction from lower the institutes and better HR management.
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5.10

APPLICABILITY OF EXISTING INDIAN LABOUR LAWS IN INDIAN IT INDUSTRY TABLE-5.10 Indian It Industry Require Separate Labour Laws/ Rules

Respondents' Observation Strongly Agree Agree No Comments Disagree Strongly Disagree TOTAL
No Comment s 2%

Number Of Respondents 57 32 02 07 02 100

Percentage Of Respondents 57 % 32 % 02% 07% 02% 100%

Strongly Disagree 2%

Disagree 7%

Agree 32%

Strongly Agree 57%

Interpretation: The comfortable majority of respondents (89%) strongly agrees or agree with the hypothesis that Indian IT sector requires separate labour management system/ regulations. While only minority of 13% has given divergent views.
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5.11

EFFECTIVENESS OF OLD AGITATIONAL METHODS IN IT INDUSTRY Table 5.11 IT industry can afford old traditional trade union methods of agitations Respondents' Observation Yes No No Comments TOTAL
No Commen ts 5% No 28% Yes 67%

Number Of Respondents 67 28 5 100

Percentage Of Respondents 67% 28% 5% 100%

Interpretation : 67% of the respondents has given their reply in No and 28% answered in affirmative. 5% has ticked No Comments choice. So, it is concluded that old agitation techniques of trade unions are not desired in IT industry.

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5.12

EFFECT OF EXCESSIVE COMPETION IN INDIAN IT INDUSTRY TABLE - 5.12

Excessive Competition Is Harming Employees Long Term Welfare

Respondents' Observation Yes No No Comments TOTAL

Number Of Respondents 53 35 12 100

Percentage Of Respondents 53% 35% 12% 100%

No Comment s 12% No 35% Yes 53%

Interpretation: Whether excessive competition in Indian IT sector is harming the overall long term prospects of employees The table above clearly indicates that excessive competition is observed as harmful to the employees prospects. . 53 percent of the respondents has replied in Yes to this question. While 35% has a negative viewpoint.

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5.13

ROLE OF TRADE UNION IN IT INDUSTRY Table 5.14 Role of Trade Union In It Industry Respondents Grading Number Of Respondents No Trade Union Single Trade Union Multi Trade Union Only welfare association Total 21 13 09 57 100 Percentage Of Respondents 21% 13% 09% 57% 100%
No Trade Union 21% Single Trade Union 13%

Only welfare associatio n 57%

Multi Trade Union 9%

Interpretation: The largest 57 percent of the respondents view that there should be only welfare association in Indian IT industry. 21% need no trade union and 13% like single trade union only.. 9 percent of the respondents opted for multi trade union.

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5.14

OVERALL ASSESSMENT OF EMERGING HR TRENDS IN INDIAN IT INDUSTRY Table 5.14 OVERALL ASSESSMENT OF EMERGING HR TRENDS

Respondents Grading

Number Of Respondents

Percentage Of Respondents 32% 13% 20% 20% 15% 100%

Excellent Very good Good Satisfactory Poor Total

32 13 20 20 15 100

Satisfacto ry 20%

Poor 15%

Excellent 32%

Good 20%

Very Good 13%

Interpretation: In the end, respondents were asked to give their overall assessment/ grading of emerging HR trends in Indian IT Industry. The overall assessment on five point scales of excellent, very good, good, satisfactory and poor is tabulated. 65% of the respondents were in positive grading of excellent, very good and good. While 35% gave a assessment of satisfactory and poor.
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6. SUMMARY
Overview of the study
6.1.1 The era of skill-based workers has arrived but if India wants to truly move to the

global arena, it has to spruce up its workforce. Small may be beautiful, but not in the IT industry. In the knowledge era and a skill-based economy, it has become imperative that human resources become one of the most essential ingredients of success. The growth of IT companies worldwide depends on its people and the intellectual capital it possesses.

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

look at the top software exporters, they have been growing phenomenally in workforce strength. To make it big in the global software market, India needs to increase its mass of knowledge workers. The establishment of Indian Institutes of Information Technology is definitely a step ahead in the right direction, but what the industry needs is experts in niche areas, in other words, persons with domain expertise.

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

425,609. A company-wise break-up of this figure reveals that nearly 525 companies constituting 35% of the IT industry employ an average of 58 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.
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6.1.4 Geometrical growth of Information Technology in the world as well as India has

created lot of revenues for government and number of avenues for employees. The introduction of computers has changed the way of life everywhere, including work places and our homes. The life has become quite fast and speed of provisioning of different services has also increased. But all this activities are being managed by number of well qualified professionals. They may be from computer hardware developers, software engineers or marketing managers. As the things are running fast, so they have to be managed fast.

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

easy to manage by the Organizations concerned. As we already know that Human Resource Management of the Organizations deals with the individuals putting their hard work to meet the Organizations goals. Managing people is the toughest element of any Organizations than land, machinery or finances. Every human being has its own degree of preferences, likings and attitude. So, HR managers have to take care of all these things in mind while dealing with the number of people working in the Organizations.

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

to be managed in different styles. The hundreds years of Organizational management experience has been converted into a standard personnel
management and industry and service Organizations are following these HR techniques for their Organizational management. Due to availability of written down procedures and rules by the learned managers, it was felt that HR managing was not so typical.

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

of skilled workforce will affect the countrys software exports in the long run, if remedial actions are not taken immediately.

6.1.8 But, emerging HR trends of Information Technology industry cannot be managed properly by the old traditional HR techniques. As it is commonly known that man learns by experience. 50 years of introduction of computers has provided us the areas to be additionally addressed by the HR managers in IT sector. Indian IT industry is not an exception. Moreover, due to existence of old conservative .and protective labor laws it is not possible to meet the ever-growing international competition in the IT services.

6.1.9 Hence, the IT industry has been devising newer Personnel Management/ HR techniques which specifically meet the needs of IT industry. The main reason for this is high standards of education and professional training required for this industry. Secondly, there are excessive job demands for developed countries in this sector and high wage standards. So, HR managers mainly in developing countries like India find it very difficult to retain and recruit their manpower. HR managers worldwide have devised handsome compensation methods like Profit Sharing, Employee Stock Option Schemes ESOP etc. Though over the period few schemes has flopped like ESOP due to heavy fall in company share prices.

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6.2 OBSERVATIONS

The employees opinion survey regarding status of HR management in Indian IT Industry and success of emerging HR trends was conducted through the use of 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:

6.2.1 The 54% of the employees were Male and 46 per cent of the respondents were
Female. It was observed that IT industry is dominated by the software professionals (46%), computer hardware and marketing services of IT are sharing the other half.

6.2.2 The respondents were asked to comment whether the HR needs of Indian IT
industry are different from traditional HR Management systems.. The majority of respondents (69%) view that HR needs of IT industry are different from old economy sector and HR managers in IT industry has to keep this into mind.

6.2.3 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.

6.2.4 As per 48% of the respondents IT Organizations has more concern for profit
motive than employees welfare. While 43% were not agree to this proposition

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6.2.5 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.

6.2.6 Whether top management awareness about working conditions of the

employees and state of working conditions in the IT Organizations, 65% of the respondents view that the top management's are not aware or little aware about the employees working conditions in the IT Organizations . Only 4 percent vouched that top management is very well aware about the nature of working conditions and 16 percent say "Much Aware".

6.2.7 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 employeeemployer relationship is very encouraging. 58 percent of the respondents has graded it very good and above. While 42 percent consider it satisfactory and below.

6.2.8 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 profit sharing and 11% suggested more promotions. 21% of the other suggestions included lateral induction directly institutions and better HR management.

55

6.2.9 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.

6.2.10

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.

6.2.11

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

welfare association in Indian IT industry. 21% need no trade union and 13% like single trade union only.. 9 percent of the respondents opted for multi trade union.

6.2.12

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

grading of emerging trends of Indian IT industry. The overall assessment on five point scales of excellent, very good, good, satisfactory and poor. 65% of the respondents were in positive grading of excellent, very good and good. While 35% gave a assessment of satisfactory and poor.

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7.

Findings and Conclusion

7.1 FINDINGS Findings from the above study are as follows:

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

computer hardware and marketing services employees.

7.1.2 HR needs of Indian IT industry are different from traditional HR Management

systems.

7.1.3 The IT industry has been devising newer compensation methods like Profit
Sharing/ Stock Options etc. to increase employee welfare and receptivity.

7.1.4 IT organization has more concern for profit motive than employees welfare. 7.1.5 The top management's are not aware or little aware about the
employees working conditions in the IT organizations.

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7.2Conclusion

7.2.1 There is a lack of HR professionals and HR Department in the IT industry. 7.2.2 Emerging HR trends of Indian IT industry are quite different from the old
economy industry. HR managers in IT industry have to keep this into mind.

7.2.3 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.

7.2.4 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 Organizations.

7.2.5 There is a need for modification of old agitation techniques. 7.2.6 There must be an open communication system at all levels. 7.2.7 There should be a proper grievance handling and feedback system in Indian IT
industry.

7.2.8 A competent HRD which may help in understanding the issues related to the
employees working conditions.

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8. Recommendation and Suggestion

Based on the study on Need of HRD in Indian IT industry, the important suggestions are mentioned here under:

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

pay per knowledge and performance.

8.2 A welfare facility organization should be made.

8.3 Appraisals must be given annually as per the policies.

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

8.5 Employee employer relation needs to be improved.

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9. Limitation
As it is true for most of the study this project is also not free from limitation. Some of the limitations of the study are:-

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

sufficient for proper understanding of the whole process.

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

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

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

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

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

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

granted as truly reflecting their perception.

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APPENDIX
QUESTIONNAIRE FOR PROJECT STUDY ON EMERGING HR TRENDS IN INDIAN IT INDUSTRY

Dear Sir/Madam, I am a management student of Northern India Engineering College, affiliated to Guru Gobind Singh Indraprasth University, Delhi. As part of course I am undertaking this project study on emerging HR trends in Indian IT Industry. I would a request you to kindly answer a few questions. This questionnaire gives you the opportunity to express your opinion regarding various aspects of emerging HR trends in Indian a new IT Sector. As you are all aware that Information Technology (IT) industry is achieving a great success in Indian employment context. As you are to a part of IT industry and must be observing that the HR trends of IT sector are quite different from the conventional old economy sectors.

The results shall be submitted to the university in the report format for the usage of researchers and other concerned authorities. As is the case for entire study, no individual will be identified. Only group averages will be reported. Thanking You Date .....
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1. Personal Profile of the Respondent

(a) Place of survey.................................. (b) Name............................................. (c) Address........................................... (d) Male/Female.......................................

(e) Educational qualifications: I. II. III. IV. Non Tech Graduate or below Non-Tech Post-Graduate B. Tech/BCA etc. M. Tech/MCA/MBA

(f) Nature of Job: I. II. III. IV. Computer Hardware Computer Software Marketing Services of IT HR/ Personnel management

2. Whether you feel that HR needs of Indian IT sector is different from old HR practices. (Please Tick)
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(i) Yes (ii) No (iii) Can Not Say

3. Whether new compensating methods being adopted by the various IT companies are positively affecting the employees welfare? (i) Positive Effect (ii) Negative Effect (iii) No Effect (iv)Cant Say

4. "Indian IT sector companies has a positive attitude towards its employees and are not neglecting their welfare and prospects for their profit sake." Do you agree with the statement. (i) Yes (ii) No (iii) No Comments

5 "The grievances of the employees in Indian IT sectors are handled properly". To what extent do you with this statement.
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(i) Strongly Agree (ii) Agree (iii)No Comments (iv) Disagree (v) Strongly Disagree

6. How much do you think the top management of your organization is aware of the working conditions of its employees? (i) Not at all aware (ii) Very little aware (iii) Somewhat aware (iv) Much aware (v) Very much aware

7. What is the state of employee employer relationship in Your Organization? (i) Excellent (ii) Very Good (iii) Satisfactory (iv) Poor

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8. The most of the employees of Indian IT sector or highly educated and sensitive in nature. Moreover, the opportunities outside are very attractive, Whether Indian IT Industry is able to retain its employees.(Please Tick) (i) Yes (ii) No (iii) Comments 9. What the HR managers of Indian IT sector should do to increase the retentivity rate of its employees (Please Tick) (i) Increase wages to international level ii) Increase foreign postings iii) Increase profit sharing (iv) More promotions (v) Any other(please specify) __________________________

10. The separate Labour Laws/Rules should be designed for IT Industry. Do you agree with this proposition? (i) Strongly Agree (ii) Agree (iii) No Comments (iv) Disagree
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(v) Strongly Disagree 11. Whether old methods of employees association/trade union like strike or Gherao

etc. are desirable in Indian IT Sector (Please Tick) (i) Yes (ii) No (iii) No Comments

12. In your view whether excessive competition in Indian IT sector is harming the overall long term prospects of employees in this sector. i) Yes (ii) No (iii) No Comments

13. Whether do you feel there is any role of trade union in the IT Industry? (i) No Trade Union (ii) Single Union (iii) Multi Union (iv) Only welfare association

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(iv) Can not say

14. Give your overall assessment of HR Management in Indian It Industry. (i) Excellent (ii) Very Good (iii) Good (iii) Satisfactory (iv) Poor

15. Please give your comments and suggestions to bring further improvement in HR Management in Indian IT Industry.

Thank You
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BIBLIOGRAPHY

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

2. Lawler III, Edward E., "Control Systems in Organizations," In Handbook of Industrial and Organizational Psychology, (Rand-Menally, 1976).

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

4. Pareek, U and T.V.Rao, 1981, "Designing and Managing Human Resource Systems", Oxford and IBH Publishing Co., New Delhi.

5. Rao, T.V. and Abraham, E.A.," A Survey of HRD Practices in Indian Industry, in Rao, T.V. and Pereira, D.F., Recent Experiences in HRD, New Delhi, Oxford & IBH, 1985.

6. Silvera, D.M., "Human Resource Development", 1988, The Indian Experience.Higher Education and IT

7. Burack, E.R. & Mc. Nicholos, T.J. Human Research Planning: Technology, Policy and & Change, The Comparative Administration Research Institute of the

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Centre for Business and Economic Research, College of Business Administration, Kent State University, 1973.

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

Examples

HR Practices: A Best Practice in HR is a particular method, approach, or practice of managing people which has a positive impact on a companys overall business performance by improving employee satisfaction, employee motivation, and customer Satisfaction, and/or bottom-line business performance. At PepsiCo plant many HR practices are used for the employees, but these practices can be categorized on the following basis:

Financial Practices Reward and Recognition Scholarship Program

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Learn smart( Training and development

facilities

Occasional Gifts Annual free medical checkup Domiciliary reimbursement Uniform distribution

Nonfinancial Practices o Performance Appraisal: MBO For Staff Members 360 degrees for workers System of half yearly appraisal review Employee Recognition program Home Visit/Nanhe Sitare Safety related Training Sports day and Annual day Community Development in villages of associates Monthly employee communication: Sankalp Birth day celebration Of employees

Idea Acceptance Award Employee of the month

Training in practice IBM UK: Tailor made training package specific to the individuals' or projects needs.

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Formal classroom training Self-study On-the-job training with senior colleagues. Both technical and personal skills training SAIL: Many mines situated in ecologically sensitive areas. Environment awareness training to around 200 middle and senior level executives. Regular environmental courses in-house every year, for middle and senior level executives. NESTLE : Several training programmes to suit varied needs: Employee Assistance Programme(EAP) : build the productive capacity of individual. Adult Basic Education and Training (ABET) : for employees without formal education. Aids them with various skills. Management Science I Dr. T. J. Kamalanabhan Indian Institute of Technology Madras Fundamental Skills:Language, literacy and communication (English), mathematics and science. Core Skills : Natural, economic and management sciences. Elective Skills : Manufacturing and Assembly, Quality Control Analysis etc.
71

 Management and Leadership Development (MLD) : Three E's: Envisioning, Enabling and Energising. The Skills Development Framework(SDF) : On-site classes fitting, turning, mathematics, engineering science, etc. Tata Management Training Centre : In-house training center for the Tata Group. Develop leadership traits. Issue- and need-based training Project orientation and action learning. Classroom sessions

Gender differences in managerial development. Male managerial hierarchy one composed predominantly of men. A glass ceiling exists for women in their professional advancement through an organization. Several reports that women were given less authority, less international mobility compared to men. Developmental activities had a more positive influence on men than on women.

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Four issues of contemporary relevance to the management development process : Cultural diversity Sexual harassment 360 degree feedback Mentoring process Cultural diversity training : for countries having cultural homogeneity and diversity and multinational companies Approaches to cultural differences : 1. Colour blind perspective ignoring cultural differences 2. Accept the presence of cultural differences and proposes to improve relationships by teaching people from each culture to appreciate the perspectives of people from other cultures. Triandis (1995) classified these 2 approaches as : Melting pot conception cultural differences are homogenized Multiculturalism conception assumes each cultural group should maintain its original culture while contributing to the smooth functioning of the society. Management Science I Dr. T. J. Kamalanabhan Indian Institute of Technology Madras Problems in diversity : Difficulty in communication
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Lower inter personal attraction. Goal of diversity training programmes - to reduce barriers such as values, stereotypes and manager practices. Sexual harassment training : 2 kinds of sexual harassment Quid pro quo harassment sexual compliance is made mandatory for promotions, favours and retaining ones job Hostile-environment harassment less blatant , refers to conditions in the work place that are regarded offensive, such as unwanted touching and off-colour jokes. Training in this area consists of teaching sensitivity to other peoples values and preferences. 360-Degree feedback : Multiple raters including self ratings, in the assessment of individuals. To enhance managers awareness of their strengths and weaknesses to guide developmental planning. Tornow(1993) 360-degree assessment activities based on two key assumptions : 1. Awareness of any discrepancies between how we see ourselves and how others see us enhances self awareness. 2. Enhanced self awareness is a key to maximum performance.

74

Mentoring : Older and more experienced individuals advice and shepherd new people in formative years of their careers. Transfer of training The extent to which trainees effectively apply knowledge, skills, and attitudes gained in a training context back to the job is called as transfer of training. Increasing transfer : What to do: Variety of examples and variability Explicit goal-setting and barrier-coping Meet expectations of trainees (realistic preview, recruiting) Training choice for employees Incentives and accountability on the job Manager support - reinforcement, modelling of trained behaviours, goal setting activities Organizational climate - risk taking, experimentation, personal development Have a culture which recognizes the importance of continuous learning Extent to which the post-training environment provides opportunities for trainees to apply what they have learned

75

 Relapse prevention training trainees identify potential problems in application and brainstorm how to deal with them Evaluation of training Evaluation criteria : (by Kirkpatrick, 1976) Reaction criteria measure impression and feelings of the trainees. Learning criteria evaluate how much has been learnt in the programme. Behavioural criteria to what extent the desired changes in the job behaviour of the trainee are realised by the programme. Results criteria economic value of the training programme to the company. Research designs : How can we measure these outcomes? (i.e., was there a change and was it caused by the training program?) Compare pre-training performance to post-training performance (1 group, two time periods) Pre-test - given to establish baseline level on the outcome Post-test - given to determine change caused by training Compare the performance of trainees to the performance of a control group (2 groups, one time period)

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Why have performance appraisals? z Performance Appraisal offers several advantages at the level of the: Individual Recognition of past effort Developmental requirements can be uncovered Team Alignment of effort with objectives Motivation of team members Organization Development of staff Achievement of key objectives Best and focused utilization of human resources 360 degree appraisal Multirater appraisal and feedback system Culture building Leadership development Potential appraisal Career planning Succession planning Team building Management Science I Dr. T. J. Kamalanabhan
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Indian Institute of Technology Madras Prerequisites for 360 degree Top management commitment Implementing HRD systems effectively Top management willing to invest time and effort in providing feedback Top management needs to conduct performance review sessions regularly Top management is willing to be assessed by its subordinates and colleagues Overall benefits of appraisals Increased employee performance Greater control of work Improved motivation and commitment Increased information flow Better relationships within & across the organization Management Science I Dr. T. J. Kamalanabhan Indian Institute of Technology Madras Managers role in performance management Set Objectives with Employees Manage Rewards and ensure Fair Compensation for a level of Job
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Performance Offer Accurate, Timely, Regular & Specific Feedback Advantages to managers Through Performance Appraisal, Managers can : Translate business goals into individual job objectives and standards Monitor performance and offer feedback Communicate and seek agreement on objectives Coach employees on how to achieve their performance objectives Identify employees strengths and weaknesses Generate and agree development plans to best serve the organizations and individual needs Employees role in performance management Set Objectives with Manager Improve Performance Be Actively involved in their Development Management Science I Dr. T. J. Kamalanabhan Indian Institute of Technology Madras Advantages to employees Through Performance Appraisal, Employees can : Openly discuss performance with managers Be provided with a development tool
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 Reinforce and sustain performance Improve existing performance Determine career progression goals Identify training needs Link rewards to performance

Here are some of the best HR practices that help in the creation of a highly satisfied and motivated work force. Work Environment A safe and happy workplace makes the employees feel good about being there. Each one is given importance and provided the security that gives them the motivation and incentive to stay. This is usually achieved through internal surveys to find out whether they are satisfied and if not what they think needs to be changed. Open Management Employees dont like the feeling of being kept in the dark about what is happening in the company. They feel motivated and develop enthusiasm only when the management opens up to them and discusses the company policies, sales, clients, contracts, goals and objectives. This encourages participative management. Asking them for ideas on how to improve will get their creative
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juices flowing. Being open about everything related to the company will help in building trust and motivating the employees. This open management policy can be practiced using several tools. Performance Incentives Every good performance is appreciated in the form of a pat on the back, bonuses or giving some other compensation for a job well done. Organizations that struggle to keep up with the attrition rate are mostly those that think employees are just doing their job. Even if it is the employees job, completion in an appreciable manner calls for an incentive, and this goes a long way in boosting the staff morale. These incentives can be implemented at the individual as well as the team level and it has been seen that this works wonders in getting the best out of the employees. But it is important to keep in mind that these bonuses should not be given without a reason, unless it is a commitment for annual bonuses or some such thing. Doing so will only reduce the perceived value of the bonuses. Performance Feedback This is one the methods that is being followed by many organizations. Feedback is not only taken from the boss, but also from other seniors and subordinates. Previously, appreciation was only sought from the immediate boss or the management, but now organizations understand the importance of collecting performance feedback from several quarters. The opinion of everyone matters, especially for someone who is in a leadership role at any level. Each person in the team is responsible for giving constructive feedback. This kind of system helps in identifying people who can perform well as leaders at higher levels in the organization. Even the senior level managers can use this system to their advantage, as a tool to improve themselves. Employee Evaluation
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Every company has an employee evaluation system in place but a good system links individual performance to the goals and priorities of the organization. This works well when achievements are tracked over an year. For a fair review of each employee, the evaluation, apart from being done by the boss, should be done by another person at a higher level, for whom the employees contribution is important. Ratings can also be obtained by other employees. This ensures a fair and accurate rating of each and every employee. Sharing of Knowledge Knowledge sharing is a wonderful strategy that helps in the betterment of the employees and their work. Keep all the knowledgeable information in central databases that can be accessed by each and every employee. For example, if an employee is sent on some training, the knowledge that is acquired by that employee can be stored in these databases for others to learn from it. Even innovative ideas that the management deems fit for employees to see, can be stored here for all to see. Publicize Good Performances Every company has some employees who outperform others. Such performances should be highlighted and displayed where other employees can look at them; such as on the display boards and intranet etc. This will encourage others to give their best. A proper system should be set up to make a list of high performances at specific times in a year. Discussions Successful organizations nurture ideas and they understand that employees who are actually working and know the business can provide the best ideas. The management should have discussions with employees to get these ideas
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out of them. There can also be suggestion boxes to capture these ideas. Through this system, managers can find talented employees and develop them. Rewards While recognition of talent is highly important, this recognition has to be made public and what better way than holding ceremonies and announcing to the whole world (the employees), the achievements of a fellow employee. There can be nothing better for an employee than the heady feeling from a resounding applause. The Surprise Factor Who doesnt like a surprise? Surprise deserving employees when they are least expecting it. It could be a gift certificate or a small reward of some sort. This surprise doesnt have to be limited to the best performers, but it can be randomly given to others as a motivating factor too. Anyone can be given this surprise reward. Such healthy HR practices encourage the growth of the organization as employees after all play a major role in the well-being of a company. Making an employee feel like a million dollars pays in the form of the success of an organization.

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