HR Issues in IT Startups

Making IT Work

Entrepreneurship & New Ventures

Group 10 |Niketa Narain | Rameez Raja | Sandesh Banger | Vigneshwar M | Vikram Singh 98 109 115 189 123

Contents

1. 2. 3. 4.

Task at Hand
Company Overview Analysis Recommendations

Task at Hand

Identify issues related to Human Resource Formulate Human Resource Engagement Program

NuCore Software Solutions

Started in 2002 Around 25 employees

Markets: India and Middle East Focus: air travel and car rental verticals End-to-end IT consulting services company

Motto

Values

Believe in Mutual Success

Professionalism & Commitment Provide the best service to our clients

Products & Services

Products
Travel Back Office Solution TRAACS Electronic Travel Order Management Solution for Corporates Car-rental Business and Accounting Solution - RACE Real Estate Back Office Solution.

Services
Enterprise Portal Development Services for Travel Agencies Travel Business Intelligence Reporting Services for Travel Agencies Open Source Consultancy for OrangeHRM, KnowledgeTree, and SugarCRM Customized Software Development Software Re-engineering and Maintenance

Management
CEO, MD CSE, Univ. Calicut MCA, NIT Calicut Works with CTO, HR & AQ Teams CTO & Director CSE, Univ. Calicut MCA, NIT Calicut MBA (IT), Bharatiyar Univ. Expertise: Open Source S/W

CTO & Director 7yrs exp. in business dev., proj. planning Commerce, Univ. Calicut MCA, Gandhigram Deemed Univ. Expertise: Project Planning & Implementation

Suhail

Niyas

Vinod

Core Team
Mohan Kumar

Chief Advisor 2 decades work-ex in banking, IT, finance MBA, Systems & Finance Expertise: Open & Legacy technologies, IT, Finance

Director - International Business Development Was CEO for 4 years Computer Applications, MG Univ. MCA, NIT Calicut Expertise: Design, Develop S/W

History
Started in 2002 by 6 MCA Students, NIT Calicut
Rationale: WTC Recession Placements

Seed Capital: INR 1 lakh (family & friends) Inauguration of NuCore (2002)
Director, NIT C Chief Guest: Saji Gopinath IIM K

Technology Business Incubator (TBI), NIT C

Professional guidance Bank Loan of INR 5 lakh at low rate (2005)

Niche Segment Less Competitors

Customers
2002-03 2004-05 2005-10

2010-2012

Clients

4 Pillars of Successful Organizations

Fundamental measures of organization performance
Organization Focus Employee Engagement Customer Loyalty Business Results
Organization Focus

SUCCESS

Employee Engagement

Customer Loyalty

Business Results

These elements form the pillars of success for a firm

If all 4 are strong, chances are that everyone including customers, employees and shareholders are happy

Organization Focus Not Clear

The company doesnt have vision and mission statements
These are important to set direction and tone of the company and which inspires you, your people, partners and customers

No Firm wide Mission or Vision means

Direction-less growth
Symptoms

There are no concrete future plans in place There is a huge disconnect with employees

Employee Engagement - Low

Low productivity
Significant increase in absenteeism Deadlines are hardly followed Tendency to postpone work
Symptoms

Lack of cooperation with administration

Strong sense of resistance towards any change in internal administration Refrain from participating in team building activities Strong bond among themselves but not with the firm

No HR department No appraisal system for employees No clear career growth path for employees

Customer Loyalty & Results

Customer Loyalty - Good

Business Results - Average

Most clientele is in Gulf Although there is a Single Major Client, however over years the client has been very loyal Major source of revenue

Revenues have been average Profitability has not been very good over years

However, forecasting revenue & growth is difficult

Fishbone Analysis

Challenges for Organization

Increased Non-billable hours due to bugs and patches Regular attrition happening in the organization

Lack of punctuality

Employee productivity is very low

Absenteeism

Direct impact on revenue

Resistance to change

Deadlines not met properly

Challenges for Employees

Lack of well defined career growth

Lack of awareness about organizational growth

Low motivation to work Lack of work culture No emotional attachment to the organization

Job responsibilities

Learnings from the project

Standardized work processes

Recommendations
Highly productive and motivated employees

Organizational functioning

Recruitment processes

Other HR practices

Organizational functioning
Mission and Vision
Formulate a proper mission & vision statement Communicate to all Stakeholders

Regular communication program

Keep employees aware of projects, targets, realized revenues Have them well informed of organizational progress

Flexible timings based on work

Gives greater degree of independence and freedom

Continuous engagement through programming events and related activities

Provides a greater sense of respect and worth

Process documentation
Make employees realize the organizational initiatives

Recruitment process

Comprehensive on-boarding process Introduce them to organizational way of working Familiarize the organizational procedures Referral programs Known recruits from familiar institutions Informal communication channels

Prepares them for reality

Other HR Practices
Well defined appraisal system Incentive to put in better efforts Accelerated career path Grievance redressal mechanisms Formal platform to anonymously report problems and issues HR policy manual Clarity in terms of organizational policies

Comprehensive feedback mechanisms

Option for peers & subordinates to provide feedback

http://nucoreindia.com