Welcome to Open Defense A Doctoral Thesis Presentation on Learning to Compete : The Performance Effect of Human Resource Management

(A Critical Evaluation of IT Industry in Nagpur)

Submitted to
RashtraSant Tukdoji Maharaj Nagpur University, Nagpur for the Award of Degree of Doctor of Philosophy In the Faculty of Commerce (Board of Studies in Business Management & Administration)

Researcher

Mohan Sawade
M.B.A. M.I.R.P.M. M.C.M. D.B.M.

Under the Guidance of

Dr Vivek Pimplapure
M.B.A., M.Com.,M.Phil.Ph.D.
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Introduction
Under present market forces and strict competition, the Software Companies are forced to be Competitive. Software Companies must seek ways to become more Efficient, Productive, Flexible and Innovative to stay ahead. HR system plays a key role & have a practical impacts on the survival and financial aspects of IT firms besides the productivity and quality of work life of the people in them.
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Introduction
HR practices inHR has increasing in The practicalhelps knowledge of been gained and mainlyquality by observing all to the gain the productivity and activities taking place in HR department. competitive Under present advantage market forces of and a strictworkforce competition, the software companies are strategically aligned with the organization forced to be competitive. companies must seek ways to goals and Software objective. become more efficient, productive flexible innovative accounting under constant pressure to HRA also and involves for investment improve results. system have replacement important, practical costs, as in peopleHRand their impacts on the survival and financial also the performance economic of on people in an of value firms and the productivity and quality of work life of the organization. people in them Evaluation becomes fairer if it is based on the records of periodic counseling & achievements of the employee, tracked over the year.
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HR As A Management Function In IT Industry

The knowledge economy encompasses all jobs, companies, and industries in which the knowledge and capabilities of people, rather than the capabilities of machines or technologies, determines competitive advantage. The manufacturing sector is also becoming more dependent on knowledge and human capabilities as microprocessors and computers pervade almost every facet of work.

HR As A Management Function In IT Industry

Human know-how is a crucial component in virtually everything we produce, and it determines how we produce valued goods and services.

Rational of the Study

The primary purpose of this research is to provide a careful description of the various workplace practices used by Indian IT companies and to examine the effect of these different practices on their performance. The Study will also uncover the details of workplace practices in an environment that has not been widely researched in the past and in IT industry which is a vital source of livelihoods for low income groups and source of foreign exchange for many less developed countries

Objective of the Study

To study the HRM practices and policies adopted and implemented in IT companies in Nagpur. To study the effect of particular human resource policies and practices, and systems on performance of employees. To analyze the role of HR in developing organizational competencies. To identify the HR practices for high performing employee engagement.
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Objective of the Study

To analyze the investment in Human Resources Management which can contribute to a firms efficiency by improving the skills, welfare and loyalty of employees. To study the functions of various departments individually and jointly with respect to H.R. department. To suggest the effective means and measures in effective working of the organization. To evaluate the performance level of employees at various levels.
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IT Companies In Focus at Nagpur

1) Premier Technologies 2) Persistent Technology Group 3) Lambent Technologies 4) Info-spectrum 5) Precision 6) ACES e-technology 7) ADCC Research and Computing 8) Prism Technologies 9) Ascent Transcription Services 10) Central System Provider and etc.
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Hypothesis
1) The local IT companies do not implement advanced HRM Systems. 2) More extensive use of High Performance Work Practices will be positively associated with Market Performance.

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Research Methodology
Universe of the Study

The universe selected for the study is Nagpur region.

Population

The target population for this study is all the IT Companies in Nagpur region were treated as sample.
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Research Methodology
Sample Size

Each and every aspect of human resource management in all IT companies in Nagpur was investigated.
Sr. No. Sample Unit Sample Size

01 02

IT Company Employees IT Company Officials

500 50

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Research Methodology
Method of Sampling

For the purpose of this study Non-probability sampling technique of Quota Sampling was employed as the sample size was small and fixed and the sampling unit was clearly defined. Questionnaire asked for all the categories were closed ended. Both Descriptive and exploratory research was used in compiling this study.

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Research Methodology
Tools of Data Collection

Pre-designed questionnaire and pre-structured Interview schedules was canvassed for collecting primary data to study each and every aspect of Human Resource Management in IT Companies in Nagpur.

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Data Analysis & Interpretation

For the purpose of study 500 respondents were identified and questionnaire were distributed amongst them. Only 387 respondents have submitted duly filled in questionnaire. Hence analysis is done

on the basis 387 respondents.

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Data Analysis & Interpretation

Gender Wise Classification of Data
Gender Frequency % of total respondent

Male Female
Total

255 132
387

66 34
100

The main reason for difference in ratio of male & female respondents is the actual ratio of employees recruited in the selected IT firms are approximately 70:30 (male: female)

Data Analysis & Interpretation

Classification on the basis of Age

Majority of respondents are belonging to the age group of 26 years to 35 years which in terms of percentage 44% total sample size. Apart from this age-group, mainly age group of 18 25 is having second largest share which is around 25% of total sample size, which reveals that there is heavy scope of employment at early age.

Data Analysis & Interpretation

Educational Qualification
Qualification Diploma No. of Respondents 61 % of Composition 16

Graduate Post Graduate

Other
Total

211 75
40
387

55 19
10
100

Data Analysis & Interpretation

Years of Employment in the Company
Years of Employment No. of Respondents % compositio n

0-2 2-5 yrs

5 & above Total

108 206
73 387

28 53
19 100

Data Analysis & Interpretation

Current Designation in the Company
Designation Manager Software Developer Hardware and system specialist Administrative Staff Other Total Frequen % of cy total 32 8 195 82 45 50 21 12

33 387

9 100

Data Analysis & Interpretation

Professional Relationship with Colleagues
Designation Frequency % of total

Yes
No

286
64

74
26

Cant say Total

37 387

10 100

Data Analysis & Interpretation

Career Advancement
Designation Frequency % of total

Yes
No Cant say Total

322
45 20 387

83
12 5 100

Data Analysis & Interpretation

Recreational Activities
Response Yes Frequency % of total

No
Total

350 90 Recreational activity is one of the vital part in 37 10 towards organizational employees commitment goals. 387 100

Recreational activity is one of the vital part in employees commitment towards organizational goals.

Data Analysis & Interpretation

Recognition for Achievements
Designation Yes No SOME TIME Total Frequency 216 % of total 56

Recreational activity is one of the vital part in 33 9 employees commitment towards organizational goals. 138 36 387 100

One of the key factor for motivating and increasing employees commitment is recognition for achievement. On analyzing this point it is revealed that there is good numbers of employees are getting the recognition for their achievements

Hypothesis Testing
Local IT Companies do not implement advanced HRM system.

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Result of t- test
Variable HRM Practises Training Performance Appraisal Rewards Benefits 0.92 0.91 0.63 0.21 p value

Working Condition
Equal Employment

0.32

0.38
Opportunity Information Sharing 0.5

Since the Sig. value is greater than 0.05. The Hypothesis Local IT Companies do not implement advanced HRM system was supported.
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Hypothesis Testing
More extensive use of High Performance Work Practices will be positively associated with market performance

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Hypothesis Testing
There is a significant relationship between an organizations business strategy, HR systems and employee relations strategy; specifically, incentive HR strategy and Traditionalist strategy are more likely to be found in champion organizations; Investment HR strategy and Sophisticated moderns strategy is more likely to be found in Analyzer organizations, and Involvement HR strategy and Standard modern strategy is more likely to be found in Prospector organizations.
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Hypothesis Testing
Therefore ,Hypothesis More extensive use of High Performance Work Practices will be positively associated with market performance was supported.

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Findings
1) Majority of sample respondents are belonging to age group of 18 to 25 years. 2) The majority of sample respondent in the study are having the maximum qualification as Graduate. The main reason behind this may the early openings of job in this sector.

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Findings
3) Regarding the holding of current designation in the organization 50% of the sample respondents are software developers, whereas 21% are hardware and system specialist. 4) Around 75% i.e. 290 respondent said there is a possibility to talk to your boss about subjects not related to business,

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Findings
5) The professional relationship with the employees working in the organization is very solid and healthy.

6) The findings in this study show that the respondents prefer a challenging and interesting work. The same result has been found in studies that showed that the majority of the IT professionals feel that an interesting and challenging work is an important motivational factor for performing a good work.
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Findings
7) There is ample opportunity exist in the current organization for career advancement, around 83% of the total respondent said they find very good career advancement in the organization in which they are working currently. 8) There is good numbers of employees are getting the recognition for their achievements, though there might be having a differential policy for recognition for achievement.
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Findings
9) Many a time organizations promote their employees for further studies as around 60% of the employees have given conformity for this question, very negligible employees have given negative response. 24% of employees said it offered on occasional basis, keeping merit factor in to consideration.

10) Many organizations have accepted the role of HR executives is one of the main concerns for formulating firm strategy for success.
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Findings
11) It has also been found that job satisfaction has been related to employees supervision and pay satisfaction, which is evidence that monetary incentives are a motivating factor. 12) It is observed that if the management gives more attention to training and career development to their employees, it will be a step for gaining superior employee commitment, which in return, it can enhance, organizational knowledge management.
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Conclusion
1) The results from the study conclusively indicate that when selection, compensation, and appraisal HR practices interacted with highly employee participative management systems , it will have a significant and strong positive relationship to financial performance of the organization.

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Conclusion
2) The area of selection is widely diverted from Intelligent Quotient (IQ) to emotional Quotient (EQ). Organisations are looking for those men who can handle the complex business situations in proper way.

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Conclusion
3) Study successfully examines the case of adjustment in a low-cost, labor intensive model , to understand how traditional factors in developing regions IT companies cope with external crises and rise above them like phoenix.

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Conclusion
4) The study clearly indicated that IT dependent on the factors like size, network of firm and it plays a key and impacts the performance of the either directly or indirectly. firm age, role firm

5) In short the performance effect of any IT firm largely dependent on its type of HR system and policies it implements.

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Suggestions
1) Many IT company officials have suggested that HRM has to focus on developing a model that examines hierarchical impacts of HRM on organizational performance. 2) HRM should focus on developing measures of organizational performance that can be used for organizations at business unit level.
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Suggestions
3) For the Success of organization management has to try and maintain a good communication for constant flow of information and to make the employees feel that they really are part of the organization.

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Thank You !

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