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A Final Research Project

HR PRACTICES IN IT INDUSTRY

Submitted for partial fulfillment for the award of

Master of Business Administration


[2017-19]

Submitted by

AKARSHIKA PANDEY

1704770005

Under the able Supervision of

Mrs. Ila Pandey


Designation (Head Academics)

Dr. Virendra Swarup Institute of Computer Studies


810 W1, Saket Nagar, Juhi, Kanpur – 208014

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PREFACE
M.B.A. is stepping-stone to Management career. In order to achieve practical, positive and
concrete results the theoretical knowledge must be implemented with exposure to real
environment. M.B.A. combines both theory and its practical applications as its major content of
study in the field of management. Theoritical knowledge without practical knowledge is of little
value. Theoritical studies in classroom are sufficient to understand the marketing concepts.
Therefore, it becomes necessary to undergo any project work. Practical project supplements the
theoretical studies. It exposes a student to invaluable treasure of experiences. I took my Research
work is a part of our curriculum, which helps to correlate our theoretical concepts with practical
experiences. The topic that I have taken for project is “HR PRACTICES IN IT INDUSTRY”.

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DECLARATION

I hereby declare that the project report entitled HR PRACTICES IN IT INDUSTRY”


Submitted in the partial requirements for the degree of Master of Business Administration to Dr.
A P J Technical University,Lucknow is my original work and not for the award of any other
degree, diploma, fellowship or any other similar title or prizes.

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ACKNOWLEDGEMENT

This is doubtlessly what this project is about. Before getting to brass tacks of things .I would like
to add heartfelt word for the people who have helped me in bringing the creativeness of this
project.
To commit things I would like to present my vote of thanks to the Director of Dr. Virendra
Swaroop Institute of Computer Studies Prof . Pragya Awasthi for being appreciative
enough for giving me this opportunity to undertake this project.
I would like to express my sincere gratitude to Head of Department of Virendra Swaroop
Institute of Computer Studies Mr. Saurabh Shukla of Management of Business
Administration for his encouragement and assistance throughout the work.

I am deeply indebted to mentor of this project Mrs. Ila Pandeyfor their valueable and
enlightened guidance for completion of this report.

My parents need special mention here for their constant support and love in my life.
I also thank my friends and well wishers, who have provided their whole hearted support to me
in this exercise.
I believe that thie Endeavor has prepared me for taking up new challenges opportunities in
future.

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EXECUTIVE SUMMARY
Information Technology Industry in India has come of age and the competition between the
various players have intensified. The main resource based on which IT companies define their
core competencies have always been “manpower”. Therefore attracting capable employees,
developing them in the organization, retaining them and maintaining the knowledge they create
is a major strategic objective for all the organizations in the sector. To do so the Human resource
departments in these companies has to evolve and take on a more central role in the organization.
With the top management support, the HR function in IT organizations has taken to the new
challenges posed by the business environment by bringing in innovation in the Human Resource
practices. While trade papers intermittently record these efforts, research efforts have not been
undertaken to understand the extent and impact of HR practices in India especially in the
Information technology context. Therefore this study attempts to understand:
1. The extent to which HR managers believe that innovation in HR practices are important for
achieving goals of the organization
2. The major areas in which innovation is required
3. The extent to which Indian companies have succeeded in inculcating HR practices
4. The major influences on the kind of HR practices adopted by Indian IT organization
5. The important outcomes of innovation in HR practices with reference to organizational
commitment and performance.

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TABLE OF CONTENT
1. INTRODUCTION
Introduction of the Industry

Need Of the Study


2. REVIEW OF LITERARATURE
3.
HR PRACTICES IN IT INDUSTRY
4. RESEARCH METHODOLOGY
Research objectives

Problem to be investigated

Hypothesis Test

Research Design:
a. Population:
b. Sampling design
1. Sample Size:
2. Sample Unit:
3. Sampling procedure
c. Source of data
d. Methodology of collection of data i.e.
contact methods
e. Statistical tools for evaluating and
utilizing data.

5 DATA ANALYSIS AND INTERPRETATION


6 CONCLUSION AND SUGGESTION
i) Conclusion
ii) Advantage of the study
iii) Limitations of the study

6. BIBLIOGRAPHY
ANNEXURE

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CHAPTER 1

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1 .INTRODUCTION

INTRODUCTION OF THE INDUSTRY:

Information Technology (IT) sector in India is one of the rapidly growing sectors. Indian IT
sector has a great reputation and brand value in the global markets. Indian IT industry comprises
of software sector and Information Technology Enable Services (ITES). Indian IT industry also
includes Business Process Outsourcing (BPO) industry. India is an affordable market destination
for software development and IT & ITES services.
Indian Information Technology (IT) industry has played a key role in putting India on the global
map. The IT-BPO sector has become one of the significant growth sector for the Indian
economy. In addition to fuelling India’s economy, this sector is also positively influencing the
lives of its people through an active direct and diversity. IT sector has played a significant role in
transforming India’s image from a slow moving bureaucratic economy to a place of innovative
entrepreneurs and a global player in providing world class technology solutions and business
services.
According to National Association of Software and Service Companies (NASSCOM), “The
sector is estimated to have grown by 19% in the F.Y. 2011, clocking revenue of almost US$ 76
billion. India’s outsourcing industry has witnessed a rebound and and indirect contribution to
various socio-economic parameters such as employment, standard of living registered better than
expected growth according to NASSCOM.”

ROLE OF IT INDUSTRY:

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The IT industry serve as a medium of e-governance, as it assures easy accessibility to
information. The use of information technology in the service sector improves operational
efficiency and adds to transparency.It also serves as a medium of skill formation.

 Economies of scale for the Information Technology industry are high. The marginal cost
of additional unit of additional software or hardware is insignificant compared to the
value addition softare or hardware is insignificant compared to the value addition that
results from it.
 Unlike other common industries, the IT industry is knowledge based.
 Efficient utilization of skilled labor forces in the IT sector can help an economy achieve a
rapid pace of economic growth.
 The IT industry helps many other sectors in the growth process of the economy including
the services and manufacturing sectors.

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HISTORY AND EVOLUTION OF IT INDUSTRY:

HISTORY:

India’s IT Services was born in Mumbai in 1967 with the establishment of the Tata Group in
partnership with Burroughs. The first software expert zone, SEEPZ- the precursor to the modern-
day IT park-was established in Mumbai in 1973. More than 80 percent of the country’s software
exports were from SEEPZ in the 1980’s.
The Indian economy underwent major economic reforms in 1991, leading to a new era of
globalization and international economic integration, and annual economic growth of over 6%
from 1993-2002. The new administration Sri Atal Bihari Vajpayee (who was Prime Minister
from (1998-2004) placed the develpoement of Information Technology among its top five
priorities and formed the Indian National Task Force on Information Technology and Software
Development.

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Walcott & Goodman (2003) report on the role of the Indian National Task Force on Information
Technology and Software Development.
The Indian IT industry originated under very unfavourable conditions. During olden times local
markets were absent and government policy toward private enterprise was hostile. The Indian IT
industry was begun by Bombay –based conglomerates who entered the business by supplying
programmers to global IT firms located overseas. During 1970s the indian economy was the
Indian Economy was state-controlled and remained hostile to the software industry.
IT Industry in the country has played a major role in placing India on the international map. The
Indian IT industry mainly comprises of instance system integration, software experiments, netork
services and IT solutions. According to the analysis done by the annual report 2009-10,prepared
by the Department of Information Technology (DIT), the IT-BPO industry was expected
toachieve a revenue aggregate of US$ 69.6 billion in 2008-09, growing a rate of over 5%. The
report even predicts that the indian IT-BPO revenues may reach US$ 225 billion in 2020.

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EVOLUTION:

The evolution of the IT sector can be studied in 4 states as follows:


• Stage 1 Prior to 1980: In the first stage of evolution, Indian IT sector was basically started
with hardware products and software industry did literally not exist in India until 1960.
Government protected the hardware sector through high tariff barriers and licensing. In the
west, there was a greater demand for software development because the inbuilt software with
the systems was insufficient to perform all the operations accurately. So, to earn more foreign
exchange, the Indian Government found out the potential of software sector. In 1972, the
government formulated a new software export scheme, in which it was decided to import
hardware and export software. TCS Ltd. became the first company to accept such scheme. In
1974, the software export was started in India.

• Stage 2 1980 to 1990 :During this stage, in spite of government initiatives, the software
exports could not be reached at the expected level because of two reasons. First, the export of

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software was dependent on the imports of hardware and the procedural aspects ware too
cumbersome. Second, there were no proper infrastructural facilities for software
development. In order to encourage more participants in this sector, it was mandatory to
reduce import duty and to simplify import and export procedure. To overcome the above
problem, a new software policy was formulated. According to this policy, the import
procedure was simplified and the import duty for import on hardware for software developers
was reduced. In 1986, the government took some healthy corrective steps to develop IT
sector. As a result, Indian Government software policy and liberalized the IT sector.
According to this policy, the imports of hardware were de-licensed and were also made duty
free for exporters. This policy has reduced a number of entry barriers making the growth in
this sector inevitable.

• Stage 3 1990 to 2000: This period has witnessed intensified competition in the IT sector.
During this stage, there were some significant changes in Indian economy, including trade
liberalization, relaxation in the entry barriers, opening up of Indian economy for foreign
investments and devaluation of rupee. Due to the liberalization, a flow of foreign investments
was come in India and MNCs in India were introduced. “Offshore Model”, “Onsite Model”
and “Global Delivery Model (GDM) were also introduced as part of their distinguished
services.

• Stage 4 Post 2000: The global problems like Y2K, the dotcom crash and the recession in the
US economy has forced many US firms to utilize the services of the Indian firms. This has
resulted in placing the Indian IT industry on the global map. Post 2002-2003, the industry
had registered a robust growth rate. During this stage, there was in increase in the Indian
client base, large sized contracted and a strong global delivery model.

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MAJOR PLAYERS ARE:

Players
Indian software industry has a mix of a few large companies and several small to medium sized
companies. Currently 42 Indian companies have exports of more than Rs 1 billion. First
generation entrepreneurs, who had limited access to finance and low risk taking capabilities,
operate most of these large companies. Smaller companies which are also typically entrepreneur
run companies, have a similar potential to strike it reach. Some of the key players in this industry
are Infosys, Wipro, Mahindra British Tele., Mastek etc.

Geographical Distribution

Most of the software companies are concentrated in western and southern part of India. These are
further concentrated in a few cities. Choice of location has been driven by availability of
infrastructure facilities, cost of space and manpower availability. In terms of business size,
Mumbai, Pune, Hyderabad, Banglore and Chennai have the highest concentration

Most of the software companies are concentrated in western and southern part of India. These are
further concentrated in a few cities. Choice of location has been driven by availability of
infrastructure facilities, cost of space and manpower availability. In terms of business size,
Mumbai, Pune, Hyderabad, Banglore and Chennai have the highest concentration.

TCS
Wipro
HCL
Tech Mahindra
SLK Software
Accenture
Infosys
Oracle financial service

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PRESENT SCENERIO:
The current scenario in the IT sector

India has the largest pool of manpower, second only to the US.
According to a study conducted by the National Association of Software and Services
Companies (NASSCOM)-quantity of skilled knowledge workers in India seems to be a non-
issue, and it would be so atleast for another couple of years.

The arithmetic out of 1.22lakh engineering graduates qualifying every year in India, about
73,000 are software engineers from IITs and other RECs. Thus, around 73,000 fresh software
engineers are expected to be available annually. Total demand for software professionals during
the next couple of years is estimated at 1.40 lakh. Against this, India is expected to have a pool
of 1.46 lakh software engineers. Besides, quite a few Indian universities have started courses
leading to Masters in computer Applications and there are private Training Institutes which offer
high level software engineering courses.

According to an AIMA survey, 60% of the IT Companies have a written job description of all
levels of employees. The rest 40% either have a partly written job description or they donot have
anything written at all making it difficult for both the employee and the employer.

Most CEOs site lack of skilled professionals as one of the major hindrances to growth in the
Indian Software Industry. Reputed software companies might get people at the base level but
getting somebody with an experience of more than 4-6 yrs is a problem. The problem of
retention was more prevalent in the telecom, IT and the Services sector than manufacturing and
traditional sector.

When asked about employee retention, the majority among HR professionals of IT felt that it
was all about retaining good people in the company and creating such situations for the non-
performing employees that they quit on their own. It was felt that employee retention was a
collective responsibility of the HR department, top management and individual departments in

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an ascending order with the HR Department having the maximum and individual department
having minimum accountability.

Data shows that in companies with more than 1000 employees, the HR Department was strong
whereas in mid-sized companies, the individual department was responsible along with the top
management.

Large companies with growth rate higher than 10% did not face serious retention problems, but
large companies with lower growth rates had acute problems in retaining their employees. In all
industry segments, the employee attrition rates at the junior level were on the higher side
compared to that at the top management level.

Studied over the last two years, retention levels have either increased or remained same due to
better compensation, healthy competitive environment, higher profitability of the company, and
good working conditions. But the case is not so with the IT sector, where the key motivator is the
lure of U.S market.

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NEED OF THE STUDY:

The boom in the information technology revolution has been rising during the recent past and is
expected to go on for many years to come. Attracting the best professionals is never easy, no
matter what industry segment we consider.

This is especially true in the case of the IT industry where the attrition rate has been the highest.

Attracting and retaining talent has become a Herculean task in this sector. The objective of this
project has been to find out the major causes of employee turnover in the IT companies. It also
looks at how this brain drain can be reduced and what methods can be adopted to retain the
knowledge worker in the company.

The project focuses on


1. The importance of retentior in the IT companies.
2. Most effective methods to find the cause of turnover.
3. Factors favoring retention.
4. Innovative methods adopted by companies to retain people.
5. Constraints faced by the organization in implementation of retention strategies.
6. Effectiveness of the methods used to retain people.
The boom in the information technology revolution has been rising during the recent past and is
expected to go on for many years to come. Attracting the best professionals is never easy, no
matter what industry segment we consider.

This is especially true in the case of the IT industry where the attrition rate has been the highest.

Attracting and retaining talent has become a Herculean task in this sector. The objective of this
project has been to find out the major causes of employee turnover in the IT companies. It also
looks at how this brain drain can be reduced and what methods can be adopted to retain the
knowledge worker in the company.

17
The project focuses on
1. The importance of retentior in the IT companies.
2. Most effective methods to find the cause of turnover.
3. Factors favoring retention.
4. Innovative methods adopted by companies to retain people.
5. Constraints faced by the organization in implementation of retention strategies.
6. Effectiveness of the methods used to retain people.

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CHAPTER 2

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2.REVIEW OF LITERATURE:

INTRODUCTION:

A detailed review of literature has been made to find out the research gap and to identify
the relevant researchable issues for the study. It is essential for a researcher to review the related
literature study to have a clear knowledge about the subject and understand the research gap in
order to draw the scope for the study. This chapter contains discussion on research work of
various authors on the research topic of HR (Human Resource) practices and policies of
employee.
HR Department would be accountable for the strategic decisions and the overall performance of
the organization (Harvey, Dec 2001). A lot of Researchers have emphasized that employees that
work in teams or team work has resulted in productive performance of the organization (Carmen
Camelo Ordaz, April 2008). Nowadays, there are many companies which have also adopted
newer technologies like internet services in an effort to undertake their HR
Resource Management Practices
(HRM) Human Resource Management Research has always been a very hot topic and has been
discussed and researched by several researchers all over the world. There have been several
developments in the Human Resource field and the Human resource department has eventually
evolved over the years (Paauwe, Nov 2001) (Harvey, Dec 2001). Because of rapid
industrialization and globalization, the need for trained and skilled manpower becomes
imperative. Companies have started recognizing the importance of the HR Department and are
aligning the HR function to the strategic business goals and objectives (Srimannarayana, Oct
responsibilities. There are many social networking websites available which connect people from
the farthest corner of the world. Websites such as naukri.com, timesjobs.com and LinkedIn are
very popular websites for recruitments in India. (Bing, 2011).
While a few research efforts have been made in this area,a definition for it is sparce. Som in the
article titled “What drives adoption of innovation in SHRM practices in Indian Organizations”,
(May 2007) and in “Bracing for MNC Competition through Innovative HRM Practices : The
way ahead for Indian Firms”, (March-April 2006) defines innovative HRM practices as “Any
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intentional introduction of HRM programme, policy, practice or system designed to influence or
adapt employee the skills, behaviors, and interactions of employees and have the potential to
provide both the foundation for strategy formulation and the means of strategy implementation
that is perceived to be new and creates current capabilities and competencies”.

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CHAPTER 3

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3.H R PRACTICES:
Global Workforce

 Global presence –operations in 47 countries, 160 offices world wide

 Employs about 85,600 people (by the end of December 2006)

 IT Industry has a huge percentage of overseas employees almost 10 per cent

 About 8,000 employees of our global workforce are from 65 different nationalities
including Chile, Brazil, China, Romania, Australia, Mexico, and Hungary

 IT Industry continues to have the lowest attrition rate in the industry 10.8 per cent as
against the industry attrition average of about 15 per cent

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The HR Policies

 IT Industry gave utmost importance to its human resource function.


 The company believed in the premise that
"Good ideas can come from any level of the organization and teams can do better than
the individuals."
 The mission statement of HR division in IT Industry
"The role of HR is to provide the context for energizing and developing people to play
effective roles in ensuring that IT Industry becomes one of the top global consulting
firms. Towards achieving this we will identify, develop, facilitate, and measure the
human and technological processes in the pursuit of excellence.

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Human Resource Planning

 Human resource planning involves getting the right number of qualified people into the
right jobs at the right time so that an organization can meet its objectives.
 It is the system of matching the supply of people with the openings the organization
expects over a given time frame.
 At IT Industry, its main objectives are:
o Forecast Personnel Requirements
o Use Existing Manpower Productively
 It is done at top level at the end of every quarter and for every project
 Process of HR Planning at IT Industry:
o First clients requirements are collected at the central level
o Then they are considered Geography wise, Branch wise & Project wise respectively

Project wise

Branch wise

Geography wise

Client
requirements
are considered
(Centrally inf. Is
given)

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Job Analysis

 IT software and services has attempted to create a segments solution to fit the needs of
different layers of job opportunities within its environs.
 It is based on
o Activity to be performed
o Skills required for that job
 To begin with, the company has mapped the educational streams to the hierarchy of job
opportunities within its domain.
o Typically, the company has found that non graduates need to be trained in basic IT
and deployed for the spectrum of jobs provided in the basic level of ITES.
o Graduates in Arts and Science can fit into the programming profiles.
o A sub-set from the engineering and management teams can get placed in software
engineering activities.
o The high performers in graduate level engineering and a subset from the master’s
level can be used in high end services.
o The high performers at the master’s level and PhDs can get routed to research.
 By undertaking this mapping for its internal purposes, IT Industry is ensuring that there is
a constant supply of the right human resources to the right career opportunities and that
there is no mismatch between the roles and the available skill sets.

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Hierarchical Structure in IT Industry

National
Head

Regional Head

Delivery
Centre Head

Group Head

Project Lead

Team Lead

Module Lead
(not necessary)

Team
Members

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Recruitment & Selection

 Both internal as well as external

 Depends on:

o Manpower cost

o Effectiveness

o Past data

 External Recruitment can be on campus or off campus

 Off Campus process includes recruitments from:

o Advertisements

o Associate referral process

o Job Portal

o Consultants

 Fresher

o Mainly Campus Placements

 Experienced Professionals

o Mainly through Consultants

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Selection Procedure

Campus Placement procedure:


 IT Industry usually conducts its campus placements through a standard procedure.

 The Selection Procedure consists of a written test.

 Those who clear written test will face technical and HR Interview.

 The HR Interview is very general to test your temperament. General questions based on
current affairs, general awareness, trends in IT etc. may be asked.

 The technical interview is based on subjects you have already studied in your curriculum.

Online Technical HR
Test Interview Interview

Selection procedure for Experienced Professionals (EPs):

Management
Technical HR Review Round
Interview Interview (by Senior
Mgmt)

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Training & Development

 The primary motive of this consulting firm is to make its employees knowledgeable
about the on going practices in their respective domains.
 For this, it invests 4% of its annual revenue on training, development and other
employee empowerment programs.
 Its learning centers are at Tiruvnanthapuram & Bhubaneswar.
 Its learning centers have state of the art facilities coupled with all modern day amenities
to make learning fun.
 It has in place a well-planned induction programme for new recruits, which includes
two months of intensive training at its dedicated training facility.
 This facility is equipped to train over 600 people simultaneously in various software
subjects and technologies and soft skills.
 IT Industry also sends its consultants overseas for further education programmes.
 The company is also providing employees with Just -in-time training, which is more
reactive in nature and caters to the skills related to platform, technology, application
domain, etc. specific to a project.
 It reinforces the concepts learnt during education/induction training through on-the-job
experience.
 At IT Industry, the experience gained in handling projects is captured, encapsulated and
disseminated through Continuing Education Programs.
 These programs have been designed in such a way that they are consistent with IT
Industry strategic thrust areas, career opportunities available in the company’s ladder and
individual aspirations of employees.
 Under the umbrella of its HR policies, IT Industry has earmarked the following career
paths for employees:
o technical architecture
o project management
o business relationship/geography management
o corporate functions such as Finance, HR, quality and R&D

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 Despite the vast size of IT Industry, the company is providing learning opportunities to
its professionals so that they can move up the value chain in terms of skill sets and across
streams.
 The company has developed a robust framework for career progression and professional
development and created and implemented a three –tiered training program to create a
better alignment between its expectations from employees and their knowledge and
practical skills.

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Compensation Management System

 IT Industry is reputed to be a world class employer which always cares for its employees
and maintains sound yet flexible HR policies.

 Its pay packages are designed in a way to accommodate for both the basic and incentive
components.

 The package is determined on the basis of the level (recruited for) and the amount of
experience an employee has.

 It is based on the EVA model i.e. Economic Value Added Model.

 With the implementation of EVA based compensation, the salary of employees


comprised of two parts - fixed and variable in the ratio of 70:30.

 Fixed part includes basics + bunch of benefits (cafeteria benefits, LTA, conveyance,
etc.)

 The variable part of the salary was arrived after considering

 Corporate EVA

 Business unit EVA

 Individual performance EVA

 Also there is super augmentation after every 5 years

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Performance Appraisal

 The major objectives of performance appraisal at IT Industry are:

o Identifying employees for salary increases, promotion, transfer and lay off or
termination of services.

o Determining training needs for further improvement in performance.

o Motivating employees by indicating their performance levels.

 Appraisal at IT Industry is done for both the Services & Managerial Employees

 It happens on

o Quarterly Basis: Before confirmation by Speed 3 online tool

o Half yearly Basis : After confirmation by Speed 4 online tool

 Every new employee is confirmed only after 1 year

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Process of Performance Appraisal

Associate

Supervisor

Reviewer

Associate

Accept Reject

HR
Department

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Retention Strategies

 IT Industry has been able to retain talent by offering software professionals a clear
defined career growth path.
 This includes ability to work in diverse geographies across network of 169 offices and
development centres in 35 countries, as well as on new technology platforms and
domains like banking, telecom, life sciences and retail.
 This is facilitated by a promotion policy, which is performance-based.

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Job Rotation

 IT Industry offers its employees a flexibility of choices on career streams across domains,
technologies and services.

 It encourages job rotation and allows movement of associates across different job roles
and functions.

 For instance, employees can move from a technical role to HR, finance or learning and
development to facilitate their professional requirements and individual aspirations.

 But before that an employee must have worked in his or her present role for at least 2
years.

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Succession Planning

 In an era of stiff competition for seasoned professionals, it has become necessary to


identify and develop leaders from within the organisation and empower them with
additional responsibility to assume increasing levels of leadership

 Succession Planning strategy is also a critical part of IT Industry business planning


process

 It is done mainly for Key Roles to retain the Talent Pool

 It is planned in each ‘practice’ which happen to be the business units of the company

 In each ‘practice’ they have a systematic process for succession planning

 High-fliers are identified at the time of appraisals and their progress is monitored

 When somebody gets identified as an exceptional performer by more than one manager,
he/she comes up for positioning in the succession planning system.

 The process however just does not stop at identifying the successors. The need is also to
provide challenges and motivation to those who have been identified as successors.
Therefore there has to be an excellent career planning process and talent mindset.

 For Example:

At Project Level – Module Lead whose role is to provide back-up to Project Lead
is considered as a successor of Project Lead

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Employee Benefits

 Flexible Working Hours

 It has an Adoption Leave Policy benefits which is extended to male associates also

o This means that associates of both genders are eligible to three months paid leave
after they adopt a child

 IT Industry also has other add-ons such as sabbaticals, joining spouse overseas, part-time
or work from home facility, holiday homes across the country and welfare trust
facilitation for higher education

 Also, as employees of the Tata group, associates get discounts on products and services
of other Tata Group companies

 The other employee benefits which are offered here include House building loans,
automobile loans, mentoring, career counseling, stress development programs and many
more

 Medical Insurance to all employee & their immediate family

o Basic Cover of 7x24 hrs of hospital facilities – Rs. 45,000& day-to-day expenses
– Rs. 5000

o Additional cover of 5 lakhs is provided for dependents on 3500Rs. Premium

o Further cover increases depending on the post

 Many of the IT Industry branches also offer recreation facilities

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Employee Welfare, Safety & Health

 Safe computer screens

 Quarterly fire drills

Grievance Handling

 They have an Open door policy i.e. any employee can approach his supervisor anytime
for his or her problems.

 They also have a special “Organization Effectiveness Department” for this purpose.

 Also an employee can approach the HR person online anytime.

 Every weak HR hour is there i.e. HR Person is available on the floor to discuss the issues.

 Group meetings are also held on regular basis.

 Also every associate must be covered at least by the HR personally in every quarter.

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Organizational Exit

 At IT Industry exit Interviews are conducted & purpose of them is mainly to know two
things:

o Why people are leaving the organization

o Why are they joining the other organization

 They are conducted by PL & HR Person of the respective team.

 Also whole information is kept secret

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Spirit of IT Industry

 Intensity to Win

o Make customers successful

o Team, Innovate, Excel

 Act with Sensitivity

o Respect for the individual

o Thoughtful and responsible

 Unyielding Integrity

o Delivering on commitments

o Honesty and fairness in action

The Spirit of IT Industry is the core of IT Industry, the Spirit is rooted in current reality, but it
also represents what IT Industry aspires to be, thus making it future active.

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Training and Development

 2 training programmes a year

 For both services as well as managerial level employees

 Vary in nature and duration

 On need basis

 Services: internally designed

 Managerial: outside bodies & internal

Training stages at IT Industry:

Induction

Post half yearly appraisal

Post yearly appraisal

Annual special training

42
 Additional Training is also provided on:

1. Ethics and values

2. Session on handling media

3. Standard responses

43
Induction

 Employee induction program of 3 days in the respective branch


 Main Objectives of induction of this consulting firm is to:
o Make new employees feel welcome and at ease.
o Help them understand the organization in a broad sense.
o Make clear to them what is expected in terms of work and behavior.
 Conducted first by HR Manager, then by Finance manager & Administration team
includes:
 12.5% - Provident Fund pay is 60:40.
 Fixed part of every month Pay packages are designed in a way to accommodate for both
the basic and incentive components
o Ratio of Fixed to Variable
o 50% - House Rent Allowance
o Rs.800 – Conveyance

Exit Interviews

 Conducted by Assistant HR Manager


 Final report is sent to the concerned department head.

44
CHAPTER 4

45
4.RESEARCH METHODOLOGY:
The objective of this project is to throw light on various strategies used by the IT companies to
retain people.
The objective of this project has been to find out the major causes of employee turnover in the IT
companies. It also looks at how this brain drain can be reduced and what methods can be adopted
to retain the knowledge worker in the company.

The project focuses on


1. The importance of retentior in the IT companies.
2. Most effective methods to find the cause of turnover.
3. Factors favoring retention.
4. Innovative methods adopted by companies to retain people.
5. Constraints faced by the organization in implementation of retention strategies.
6. Effectiveness of the methods used to retain people.

46
STATEMENT OF THE PROBLEM:

• Threat of new emerging service economies


• Emergence of China as substitute
• Poor Infrastructure
• Concentrated market and Anti-outsourcingExchange rate
The challenges of finding, keeping, developing and motivating people in key positions are
precisely what progressive HR professionals are focusing on.
These managers face ongoing talent management challenges that are critical to their achieving
business goals.
Thus, it could be rightly stated that in Indian information system is undergoing a tremendous
change, and so these changes should be adhered to by the institutions concerned.
Based on the conceptual discussion and researchable issues identified by the researcher this
study becomes important for future research.
The challenges of finding, keeping, developing and motivating people in key positions are
precisely what progressive HR professionals are focusing on. These managers face ongoing
HR practice challenges that are critical to their achieving business goals.
Thus, it could be rightly stated that in India hospital system is undergoing a tremendous
change, and so these changes should be adhered to by the institutions concerned.
The modern administrator must use relevant administrative theories and appropriate
techniques in order to cope with the changing context of IT administration, where HR
practices claims to be primary.
study becomes important for future research

47
HYPOTHESIS OF THE STUDY:
To justify the objectives of the study following hypotheses are framed:

 The IT industry staff does not differ in their opinion on talent based
recruitment practices adhered by their organisation.

 Employees’ Perception towards HR practices adhered in their


organization differs according to their demographic & socio-
economic status and work profile.

 The IT industry staff does not differ in their perception on HR


practices adhered by their organisation.

 The IT industry staff does not differ in their perception on talent


management dimension of their organisation.

 HR practices & organisation policies of private company


significantly influences their employee commitment.

 There exists no association between effective HR practices and


employees’ commitment toward their organisation.

 There exists no association between effective HR practices and


employees’ retention by the organisation.

 There exists no association between HR practices and talent


management systems in private hospitals’ .

 There exists no association between organisation policies of private

48
hospitals and their talent management.

Research Methodology:

The research methodology of the study consists of two stages, explorative and descriptive in
nature.

The current study is both explorative and descriptive in nature.

Stage I: Explorative research form part of desk work carried for collection
of review of literature. The data collected in this stage of researcher helped
the researcher to frame interview schedule.

Stage II: Filed survey form part of descriptive study, that is a fact finding
investigation with adequate interpretation. The present study depends on
primary and secondary sources of information.

Area of the Study:


Results of various studies and data of City Corporation report of
Kanpur clearly state that, this has largest industrial center next to Chennai
in Tamilnadu. Moreover, growing income level and rapid economic
changes among the population (i.e., Business class, working population and
professionals) of Kanpur city has motivated the researcher to select this
region as the study area.

Significance of the Study Area:


Kanpur has established itself as a leading center in HR practices
next to Chennai in Kanpur. It has several reputed companies providing
specialisedp practices.

49
Research Design:
The study aims to analyse the talent management practices of
private hospital in Kanpur city:
(i) Study focused only on the senior level employees, those who
are working in the multi-specialty hospitals in Kanpur city, with
more than 3 years of work experience in the present
organisation.
(ii) Industry are large, diverse organizations with numerous
departments that often dramatically differ from each other in
size, function and performance quality. This study uses
department level data drawn from the industry
(iii). Sample subjects who participated in the survey were: junior
employees(senior level), staff and administrators and officers.

50
CHAPTER 5

51
5.DATA ANALYSIS AND FINDINGS:

I. Employees’ Commitment and Intention to stay

Fostering employee’ s commitment can have a great impact on decreasing


turnover rates. Earlier research works have proved that commitment has a positive
effect on productivity, turnover and employees willingness to help co-workers’ . In
fact, increased employee commitment improves team performance and productivity
and decreases absenteeism, turnover, and intention to quit. Based on this theoretical
discussion the following table represents the sample employees’ levels of perception
towards their organisation.2.71 have opined that their organisation helps them in the
career development and promotion that in turn enrich their organisational
commitment; this variable is rated first. Followed by, majority of sample employees’
have opined that their organisation pays more attention on the personal growth and
self-learning of employees, these variables are ranked second and third with the mean
scores of
2.39 and 2.21, respectively. Employees’ view on above stated are well
complemented with their perception on organisation providing compensation /
benefits to the employee for enhancing their talent in taking up new assignment job
assignment. This variable is ranked in the fourth place, with the mean scores of 2.06,
respectively. Similarly, on an average score of 1.68 of employees feel that their
organization provides career development opportunities to its employee. Most of the
employees’ have opined that their organisation offers them a very pleasing lifestyle,
spouse plan, work life balance, stress free environment etc. These variables are ranked
sixth with a mean score of 1.66.

52
Confi
Leade dence 4 Emoti
2 3
Dialogu 2 6T.3r2u
Mainte 4 4 5.35
Liste F

EMPLOYEES’ PERCEPTION ON FACTORS THAT


INFLUENCE TALENT RETENTION IN AN ORGANIZATION

EMPLOYEES’ PERCEPTION TOWARDS ORGANISATIONAL


COMMITMENT

Source: Primary Data


Study shows the employees’ perception towards organisational commitment.
Employees’ commitments towards their organisation are classified as: positive and
negative commitment.

I. Positive Feel of Commitment

Out of 100 respondents surveyed, employees with an average score of


4.18 employees surveyed out of every five feel proud for being part of their
organisation, i.e., to work in the organization, this variable is ranked in the first place.
Similarly a considerable number of respondents are influenced by work involvement,
job motivation, responsibility and job fit in the organisation. These variables are
ranked second, third, fourth and fifth with the mean score of 4.17, 4.14, 4.13 and 4.11,
respectively. On an average score of 4.02 employees feel the sense of belonging to the
organisation, it is rated sixth.

II. Negative Feel of Commitment

It has been found that on an average score of 4.15 employees feel that there is
low scope for personal and career development in the current job; it is ranked first.
Followed by, a sizeable number of respondents have opined that there is disintegration
with organizational policies and they are in an urge to
enrich work experience, so they claim that they feel less committed towards their

53
organisation. These variables are placed in second and third places with the mean
score of 4.12 and 4.06, respectively.

Individuals prefer to stay in a company that clearly consider and take care of
their career priorities (life stage needs), health, location, family, dual- career, and
other personal needs. Table 6.4 depicts employee’ s intention to either stay or leave
the present organisations.

54
EMPLOYEES’ PERCEPTION TOWARDS THEIR TURNOVER
INTENTION

According to the study, an absolute majority i.e., 80.20 per cent of employees
have an intention to stay in the current organisation. On the contrary, 19.80 per cent of
employees have the intention to leave their current organisation.

Mohd H. R. Joarder et al (2012) studied intervening effects of affective


commitment on the relationship between certain human resource practices and
turnover intention in the context of private university in Bangladesh and reveal that
HRM Practices do have significant impact on affective commitment except job
autonomy.

Chew and Chan (2008) examined the impact of HR practices on employees’


organizational commitment and their intention to stay and found that organizational
commitment was positively affected by person-organization fit, remuneration,
recognition, and an opportunity to undertake challenging employment assignments.
Intention to stay was significantly related to person- organization fit, remuneration
recognition, training and career development. Further, he found that training and
career development is not significantly
related to organizational commitment and challenging assignments but also
significantly related to employees’ intention to stay in an organisation.

Shahnawaz and Juyal’ s (2006) study aims at assessing the degree of


commitment to the two industries can be attributed to HRM practices. Similarly,
Smeenk et al. (2006) examined the factors which affected organizational commitment
among Dutch university employees in two faculties with different academic identities
(separatist versus hegemonist,). The analysis of data reveals that in the separatist
faculty decentralization, compensation, training/development, positional tenure and
career mobility have significant effects. Age, organizational tenure, level of
55
autonomy, working hours, social involvement and personal importance significantly
affects the employees’ organizational commitment in the hegemonies faculty.
Maheshwari et al. (2005) conducted a study to find out the commitment of health
officials and its implications for HR practices in Maharashtra. The study suggests that
the district health officials do not share a strong emotional bond with their department.
Based on the past literature’ s results and discussion the following hypotheses are
framed, that aims to analyse the effect of HR and organizational practices on the
employee’ s commitment towards their organisation, employee retention and in
effective talent management

56
EMPLOYEES’ PERCETION TOWARDS HR PRACTICES AND
ORGANISATION POLICIES EMPLOYEES’ COMMITMENT

To determine one or more of the independent variables that are significant to


the predictors of HR practices and organisation practices and employees’
commitment, the information provided in the co-efficient table is examined. All the
above 43 parameters are found to be statistically insignificant. The standardized co-
efficient beta column reveals that HR
practices and talent management have beta co-efficient of -1.439 which is
statistically significant at 0.000.

To assess multi-collinearity one looks at the size of tolerance and VIF


(Variance Inflated Factor). For the tolerance, small values indicate the absence
of collinearity. The VIF is the inverse (opposite) of tolerance, one looks for
large values. If the tolerance value is smaller than .10, it is concluded that
multi-collinearity is a problem. Similarly, if the VIF is 5 or larger, then multi-
collinearity is a problem. Since the tolerance value is substantially above .10
and the VIF is smaller than 5, it is concluded that multi-collinearity among the
independent variable is statistically.

57
MULTIPLE REGRESSION MODEL SUMMARIES HR PRACTICES
AND ORGANISATION PRACTICES ON EMPLOYEES’
RETENTION

It is obvious from the above econometric analysis that F ratio (516.244) is


statistically insignificant at 5 per cent level of significance. From the above table it is
seen that the coefficient of correlation (R) value .990 between variables and the
coefficient of determinant (R2) .980 values describes that HR practices and talent
management will vary around 99.00 per cent for variation in each of those 43
independent variables. Hence the hypothesis framed stands accepted and it is
concluded that there exists association between HR practices & organization policies
and employees’ retention in the organisation.

58
HR PRACTICES AND ORGANISATION PRACTICES ON
EMPLOYEES’ RETENTION

To assess multi-collinearity one looks at the size of tolerance and VIF (Variance
Inflated Factor). For the tolerance, small values indicate the absence of collinearity.
The VIF is the inverse (opposite) of tolerance, one looks for large values. If the
tolerance value is smaller than .10, it is concluded that multi-collinearity is a problem.
Similarly, if the VIF is 5 or larger, then multi- collinearity is a problem. Since the
tolerance value is substantially above .10 and the VIF is smaller than 5, it is concluded
that multi-collinearity among the independent variable is statistically significant.

59
EFFECTIVE TALENT MANAGEMENT PRACTICES AND
EMPLOYEES’ NEGATIVE COMMITMENT TOWARDS THE
ORGANISATION

It may be found that probability value of ANOVA at 5 per cent level does not
establish good relationship between the variables. Hence the hypothesis framed stands
rejected and it is concluded that there exists association between effective talent
management practices and employees’ commitment towards the organisation.

H10: There exists no association between effective talent


management practices and employees’ retention by the
organisation.

60
ANALYSIS AND FINDINGS:
Need for innovation and areas of HR
1.Importance of innovation in various areas of HR
From the senior Human resource representatives the study attempted to understand the major
areas in the Human resource function in which they felt that innovation was necessary. The data
was collected on a likert scale. The mean value for the importance ascribed to each of the areas is
represented in figure 1. in a descending order. Employee Retention strategies were considered
the most crucial area in which innovative practices is required followed by Rewards and
Recognition, Compensation and incentives and employee retention strategies.
The areas which have been rated as least important for Indian IT companies while investing in
innovative practices are Knowledge management and CSR.

HRM and its adoption in Indian IT organizations

The mean value for the extent to which the HR managers of IT companies felt that companies
have adopted iHRM in each of the areas is represented in in a descending order.
Extent to which Indian IT companies have adopted iHRM
Reward and Recognition strategies, compensation and incentives were considered the most
common areas in which innovative practices is adopted followed by employee acquisition
strategies and performance appraisal. The areas which have been rated as least prevalent are
Employee exit and separation management, welfare measures and knowledge management in
Indian IT companies.

61
Adoption of HRM and size of organizations
The areas adoption for innovation in HR practices of the Indian IT industry were subject to factor
analysis and the three factors thus evolved were used to compare between IT organizations of
different sizes.
Ho: There is no significant difference between large, medium and small IT organizations in the
adoption of Employee acquisition and reward strategies, Employee growth management
strategies and other HR initiatives

Ha: There is significant difference between large, medium and small IT organizations in the
adoption of Employee acquisition and reward strategies, Employee growth management
strategies and other HR initiatives
Based on the results of the analysis of variance and the acceptance of the null hypothesis, it is
evident that there is no difference adoption of these initiatives by the HR managers in IT
organizations of different sizes.

62
CHAPTER 6

63
CONCLUSION:

It can be concluded that Emerging HR trends of Indian IT Industry are quite different from
the old economy industry. India is considered one of the 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.
HR managers in IT industry must keep the sensitive nature of IT professionals and state
greater opportunities outside in mind for devising HR policies for their organisations

64
FINDINGS:

 Complex business equations made more difficult y competitors all offering great
incentives, good work environment, and work place satisfaction and career development
opportunities.

 The problem however, is that even though most companies recognize that they could
improve, few realize that they have a retention problem.

 Retention problems are like cancer that can hit any company anytime, but there are ways
to combat leaving, most importantly knowing your staff needs and how to provide them.

 The biggest challenge employer’s face is the changing nature of workplace with advent
of new technologies and practice.

 The buoyant job market is one of the most serious issues facing employers who are
struggling to keep staff.

 The number one reason for employees to leave is lack of opportunities for career
development.

 Opportunity to work on particular technology leads to employees leaving the company.


This is more so, where the companies are big with more number of employees and it
becomes difficult to assign projects according to skills.

65
 Other areas of difficulty are poaching by competitors, people chasing money and senior
professional positions and the challenge of providing interesting and varied work and
global opportunities

 People are becoming increasingly selective about who they work for “Can I be proud of
the company I work for?”

 It’s a candidate tight market where there are more jobs than candidates and employees
feel they are better informed about what the market is providing and employment
conditions in competitor companies to make career-shift judgements.

 Salary is not the single most important factor. Employees are also looking at poor
management and whether companies have innovative means of rewarding people.

 Highly undesirable turnover can cost companies significantly.

 “Who is hit?” lower levels are the most vulnerable. Small companies are becoming
increasingly vulnerable and departure of even one person hits hard.

 The Indian scene


87% of the organizations feel attrition concerns acutely.
60% of the companies report increased employee turnover
52% of the employees also feel retention as an issue

 Exit interviews and employee satisfaction survey do help. These are the two most
commonly used methods used to find the cause of turnover.

 Major causes of employee turnover

Employer’s version
1) Growth opportunities
66
2) Opportunity to work on new technology
3) Compensation
4) Rewards and recognition
5) Good work environment(open culture)

Employee’s version
1) Compensation
2) Career advancement
3) Job challenges
4) Work life balance
5) Boss
6) Education
7) Health

 Some of the constraints faced by many of the companies in implementation of retention


strategies are:
1) Coping with high salary expectations and demands
2) Matching organizational v/s individual demands
3) Technology change
4) Desire to work abroad

67
LIMITATIONS:
This study is limited in many ways:

Sample size: While attempt was made to include different kinds of IT companies in the sample,
the generalizability of the study is limited by the fact that it has used a small sample

1. Data collection: The data for the study has been collected from Mumbai but other cities
like Hyderabad, Thiruvanthapuram, Pune etc. have also become established IT hubs. Future
studies can cover HR mangers in firms in these cities.

2. Cross Sectional study: While a cross sectional study has its uses, it would be ideal to garner
better depth of information on the topic if the study could access longitudinal data gathered
from deep within the firms over a period of time.

3. Analytical tools used: Normal distribution of data has been assumed for data analysis.
Further the Bartlett test was used to check ensure the applicability of techniques like factor
analysis but ideally a larger sample would be suited to conduct these tests Future studies
should look at larger samples in terms of larger participation of IT managers and larger
participation of IT companies. Attempt can also be made to look at differences between
different companies and different sub-divisions like IT and ITES or companies that cater to
the US markets vis-à-vis the European or the other markets in differences in adoption. While
this study indicates that the size of the organization in itself has limited impact a more
detailed study into actual practices instead of the reports by the IT managers would give
better insights.

68
ADVANTAGES OF INFORMATION TECHNOLOGY:
 Increases production and saves time.
 Improves Communication
 Improves data storage, File Management, Data Reporting
 Improves financial management
 Cut cost of operation and increases in RIO
 Improves business to consumer relationship
 Improves business competitive advantage

69
DISCUSSIONS AND SUGGESTIONS:

Information Technology Industry in India has come of age and the competition between the
various players have intensified. The main resource based on which IT companies define their
core competencies have always been “manpower”. Therefore attracting capable employees,
developing them in the organization, retaining them and maintaining the knowledge they crate is
a major strategic objective for all the organizations in the sector.
To do so the Human resource departments in these companies has had to evolve and take on a
more relevant role in the organization. With the top management support, the HR function in IT
organizations has taken to the new challenges posed by the business environment by bringing in
innovation in the Human Resource practices.
While trade papers intermittently record these efforts, research efforts have not been hither to
undertaken to understand the extent and impact of iHRM practices in India especially in the
Information technology context. Therefore this study attempts to understand:-he extent to which
HR managers believe that innovation in HR practices are important for achieving goals of the
organization, the major areas in which innovation is required, the extent to which Indian
companies have succeeded in inculcating innovative HR practices, the major influences on the
kind of HRM innovations adopted by Indian IT organization, and the important outcomes of
innovation in HR practices with reference to organizational commitment and performance
In order to do so, HR managers at twenty large, medium and small IT companies were
interviewed in the city of Mumbai with head quarters in Bengaluru.. The data collection
instrument was tested for reliability and validity before proceeding. The data thus collected was
subjected to empirical analysis using descriptive analysis, Factor analysis and Analysis of
variance.
The results of the study indicate that HR mangers agree that including innovative HR practices is
extremely important especially in the process of attracting and rewarding employees which are
two of the largest challenges they face. Of all the major areas in which the function oversees,
Employee Retention strategies were considered the most crucial area in which innovative
70
practices is required followed by Rewards and Recognition, Compensation and incentives and
employee retention strategies. The areas which have they been rated as least important for Indian
IT companies while investing in innovative practices are Knowledge management and CSR
The areas in which these mangers are currently seeing extensive use of iHRM practices include
the Compensation, Rewards and Employee acquisition strategies. In Employee acquisition use of
referral bonus and the social media is increasingly common while in use of a blend of financial
and non-financial rewards in addition to “Best employee” ect. is finding more takers. Virtual
working has also become increasingly acceptable to organizations if it means that they can retain
talent.
The main motivation for organizations to adopt iHRM is to remain competitive in the market
according to the HR managers interviewed in this study. Moreover the external environmental
factors including competition and the customers compel organization to incorporate innovate
practices. The other major reasons include attempt to provide a satisfying work environment,
Top management insistence, already inculcated organizational culture and structural
characteristics.
The respondents were very positive about the impact of innovative practices in HRM. They said
that the most visible impact is on the ability of the organization to attact and retain talent. This
first may also be because of the increased employee satisfaction which is also a outcome of
iHRM. The third area in which the impact of iHRM can be felt is Employee productivity. Other
areas in which the managers felt that iHRM practices can have apositive effect are: Employee
attitude and Behavior, Sales growth and People orientation of the management. While ROI,
market share and customer satisfaction are according to them positively impacted too. These
have been rated the least since these iHRM may not have a direct or immediate impact on these.
An organization investing in iHRM naturally would do so only if the outcomes gave them
strategic advantages. These innovative practices according to HR mangers of these companies
help organizations to remain competitive in the job market; moreover their clients also audit
them to ensure that their HR practices as per acceptable international standards. With these and
the employee satisfaction in view, top managements have also been pushing their HR
departments to bring in innovative HR strategies. But at the same time it’s interesting to note that
the impact of the iHRM initiatives is significantly higher for larger organizations than for smaller
ones. In Impact of organizational effectiveness at the micro level including Employee
71
satisfaction, employee productivity, attitude and behavior and on people orientation of the
management, the

smaller firms are similar to the medium sized firms but larger firms have higher impact. This
may be because the larger firms are able to implement these initiatives more fully and have the
costs spread over a larger group of people.
But the bad news is that these HR managers feel that in spite of the efforts the industry is
making, the employee commitment levels are low and they will shift for higher pay or status.
Solving this issue is the holy grail as far as HR managers are concerned. It is well known that
when employees are committed to their employer, they will deliver higher levels of performance.
Highly committed employees can also help an organization achieve much more each year than
employees with average or low commitment.
IT Organizations can use different innovative HR and leadership strategies to increase the level
of commitment of their employees. For this it’s important that the iHRM practices are tailored to
induvidual workplace culture and objectives of the companies. This begins with recruitment.
Hiring well-qualified employees who match clearly-defined job descriptions is important. Induct
them successfully into the organizational culture is also important.
Since in the IT industry it is quite prevalent to find employees shift for larger packages its
important to hold people within in its culture through informal bonding as well. While this brings
with it the fear of large chunks of an organization together, this occurrence is rare. Initiatives to
build the teams into cohesive wholes have to be initiated by HR. It seems likely that, as
employees become more embedded in a social identity, changing organizations would become
less attractive.
It is also important to develop employees as assets by giving them increasingly challenging
tasks, allowing them to become more influential and derive intrinsic benefits. Effort could also
be made to keep an ongoing dialog with employees to understand what motivates them and
adjust their development plans to help them achieve their goals inside the organization.
Therefore one of the goals of iHRM has to be to move decision making rights from mangers to
lower levels. This will help make decisions by tapping into a much larger knowledge base and
simultaneously develop problem solving skills down the line. It is also important that firms stay

72
committed to iHRM practices though it may not show immediate visible results. There is
increasing body of evidence that iHRM improves employee
productivity. But the advantages of using iHRM practices can go beyond employee productivity
and performance. An emotionally committed employee is a loyal employee.

73
RECOMMENDATIONS:
To aid in retention, companies must look at valued employees place highly and attempt to meet
these with the core values of the organization.

 Invest efforts and money in becoming an employer of choice and build company
branding to overcome retention dilemmas.

 Companies need to continually invest to ensure that they are a step ahead and know what
competition is doing.

 Be a people’s person

 Provide an environment which assists in work life balance

 Create an atmosphere where employees perceive the company as being interested in


partnering them in their career. An eg. Of work life balance would be providing financial
support to learn one new non-work skill every two years.

 Both employees and employers are equally responsible for employee retention. Senior
executives can make this happen by discussing both company goals as well as
employee’s ambitions.

 This can be done by having an open communication across the organization.

 One of the most important tasks for any manager is hiring an employee. Yet, very few are
rained in this skill. Responsibility lies with management in hiring managers. Right hiring
will ensure longer retention cycles.

 Look at retention linked performance bonuses for managers who are good at retaining
their people.

74
 Treat employees as you would treat valuable investments and ensure that they have clear
job roles, clear links to business needs and skills to successfully perform their roles is a
must.

 Employee satisfaction is the key to business success. Take care of your people, they will
atke care of your business.

 Focus on three important things-Money, Culture, Career development.

 Different strokes for different folks


-increase professionalism
-make appraisal as a robust process
-involve people in decision making
-ensure there is enough measurement of people satisfaction
-compensation
-increase organizational transparency

Enable Enlist Encourage


1) Inculcate right leadership in your supervisors
2) Enable by empowering
3) Enlist support
4) Encourage from heart

Training
1) Train and re-train
2) Skill based training
3) Training on new technology

Rewards and recognition


1) Extrinsic salary benfits, promotions
2) Intrinsic motivation
75
Capture the heart
1) Open up communication
2) Create a sense of belongingness
3) Drive learning
4) Emancipate action

76
BIBLIOGRAPHY
A. Internet sites
www.indiainfoline.com
www.atosorigin.com
www.rave-tech.com

B. Publications
Business Today
Human capital

C. Reports
Mc. Kinsey Report on retention
AIMA study on retention

D. Books
Employee rewards

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