MANAGEMENT IN IT INDUSTRY
1.0.1 Success of every
business enterprise depends on its human resource. Money, material and
machines are inert factors; but man with his ability to feel, think,
conscience and plan is the most valuable resource. At the same time human
elements are most difficult to be inspired, controlled and motivated. The
upcoming competition in India, will demand high motivational level of its
1.0.2 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
1.0.3 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 organisational interest. The world's
best companies have established their strength with their people. The
employees identify themselves with the company they are working for. This
also help in building up their spirit, morale and espirit-de-cops which
becomes strength of the company. The culture of excellence thus nurtured
contribute to growth with stability and continuous improvement in
1.0.4 Finding the right man
for the job and developing him into a valuable resource is an indispensable
requirement of every organisation. Human resources are capable of
enlargement i.e. capable of providing an output that is greater than the sum
of the inputs. Proper recruitment helps the line managers to work most
effectively in accomplishing the primary objective of the enterprise. In
order to harness the human energies in the service or organisational goals,
every manager is expected to pay proper attention to recruitment, selection,
training, development activities in an organisation. Proper promotional
avenues must also be created so as to motivate employees to peak
performance. Thus, personnel functions such as manpower planning
recruitment, selection and training, when carried out properly, would enable
the organisation to hire and retain the services of the best brains in the
1.0.5 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.
OF HR MANAGERS
1.1.1. And Some industry
commentators call the Human Resources function the last bastion of
bureaucracy. Traditionally, the role of the Human Resource professional in
many organizations has been to serve as the systematizing, policing arm of
executive management. In this role, the HR professional served executive
agendas well, but was frequently viewed as a road block by much of the rest
of the organization. While some need for this role occasionally remains you
would no want every manager putting his own spin on a sexual harassment
policy, as an example—much of the HR role is transforming itself. 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. Within this environment, the HR
professional, who is considered necessary by line managers, is a strategic
partner, an employee sponsor or advocate, and a change mentor.
1.1.2 Strategic Partner:-In
today’s organizations, to guarantee their viability and ability to
contribute, HR managers need to think of themselves as strategic partners.
In this role, the HR person contributes to the development of and the
accomplishment of the organization-wide business plan and objectives. The HR
business objectives are established to support the attainment of the overall
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
1.1.3 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. Fostering
effective methods of goal setting, communication, and empowerment through
responsibility build employee ownership of the enterprise. The HR
professional helps establish the organizational culture and climate in which
people have the competency, concern, and commitment to serve customers well.
In this role, the 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.
1.1.5 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. Knowing how to link change to the
strategic needs of the organization will minimize employee dissatisfaction
and resistance to change. 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. To
promote the overall success of his organization, he champions the
identification of the organizational mission, vision, values, goals, and
action plans. Finally, he helps determine the measures that will tell his
organization how well it is succeeding in all of this.
LEADERSHIP AND EMPLOYEE INVOLVEMENT.
1.2.1 The main
role of leadership was seen as creating a participatory process for employee
involvement, to build collective wisdom. Control has given way to
collaboration and the old paradigm of promoting competition and motivating
through incentives shifted to creating co-operation and oneness amongst
people. This is a marked shift to build effective teams. Research shows that
six out of every 10 employees like to work in teams. 87 per cent of all
Fortune 500 companies use parallel teams and about 100 per cent of all
companies use project teams.
telling and appreciative enquiry are emerging as a new dimension in positive
motivation. Finding out what's wrong seems to be the trend. In Walt Disney,
telling success stories is one of the important methods used to remind
people of greatness and goodness of the organisation. Leaders in Disney
concentrate on quality, values and involvement. Speaking in the plenary
sessions, Tom Peters said, " We have transitioned from an asset-based
economy to a talent-based economy. The new definition of lay-off is
untalented go talented stay. Leaders must realise that talent is equal to
brand". His new theory is EVP which means "Employee Value Proposition".
1.2.3 Rosabeth Moss
Kanter said, " Human beings are good raw material, they become assets when
you train them to increase their knowledge and skills". She added that only
a few organisations really train people to make them a success. Seconding
this, Mr Peters pointed out how most organisations are not serious about
developing people. They spend on an average 26.3 hours per person per year
on training. A surgeon, a pilot or an athlete on the other hand spends 10-15
times more on training.
1.2.4 He also
stated that the HRD department should be renamed TDFD (Talent Development
Fanatic Department) and wealth for this new regime will flow from
innovation, not organisation. Quoting Gary Hamel he said, only those
employees will succeed who are "certified radical". Only those companies
will succeed who create a cause, not a business. Leaders according to him
are living individuals, whom people can smell, feel and touch. Their passion
for work must be infectious.
aspect of leadership if the decision to introduce fun in the work place.
Research shows that this reduces absenteeism and builds stronger, deeper and
longer lasting relationships. It appears out of every 100 Fortune companies
in the last decade, 69 are dead and only 31 are alive. In a Forbes Magazine
study of around 100 companies from '17 to '87, only 39 companies were found
to survive. Management of Change:-Research proves that many change models
don't consider the human experience during change. The overriding concern
seems to be to downsize. It was found that most change processes go through
four fundamental stages.
People try to resist or
They adapt, participate in
They attempt to add value
The culmination or
formation of a new status-quo
1.2.6 A number of
presentations revealed that leaders who initiate change must do so with one
foot in the future and the other planted in past values. Forgetting
tradition must can devalue existing strengths. The success of a change
process depends on the skill of the facilitator to create a participatory
process to enlist the support of people and address the issue of grief.
1.2.7 E-Learning :-
Organisations like Ford Motor, Hewlett Packard, Intel and IBM are using
e-learning to increase the knowledge of their people. Companies like
Fordstar even manage time differences between countries while conducting
virtual class rooms, chats, demos, presentations to communicate new
concepts, product details, core values, issues of governance and corporate
1.2.8 CEO's are talking to
their people about new ideas and enlisting their support through forums and
message boards. This is changing the way people behave and work. The
advantages of e-learning are many: It is self-paced, flexible, less
expensive, modular and has a huge reach.
1.2.9 Universities like
Cornell, MIT, Stanford, etc, have started emphasizing e-learning to attract
a worldwide audience. Web-centric universities are becoming the order of the
day. William Taylor, editor and managing partner of the Fast Pace magazine,
said, "There is no going back from back from dotcoms". He was of the opinion
that there is a merger taking place between computers and human beings.
INNOVATIVE PRACTICES IN HR
1.3.1 The Innovative
Practices in Human Resources study uncovered 12 practices that are reducing
HR costs and improving service quality to employees. Key findings from this
research included the need for HR managers to streamline processes, lower
overhead costs, and enable their departments to advance from transactional
organizations to strategic partners in the business.
1.3.2 Practices and
Internet and intranet
Strategic human resources
Centralized HR departments
and call centers
Voice response systems
Resume scanning and
Automated time and
Team policies and
LINKING PAY TO PERFORMANCE
1.4.1 Most Human Resource
professionals are familiar with the concept of strategy. There is much more
concentration and focus today on the strategic outcomes of human resource
activity than ever before. The area of compensation is no exception.
1.4.2 Pay for performance
systems are becoming more and more popular as senior managers reach beyond
the use of compensation systems to deliver pay. There is far more interest
in more closely linking the reward mechanisms to the achievement of
corporate objectives. Motivation for superior performance is the goal.
1,4.3 In experience, most
organizations will profess to a "pay-for-performance" philosophy as a
keystone of their compensation system. Such a system requires solid
grounding in a clear and documented link between performance and salary
increases. Unfortunately, the link between individual performance and pay is
frequently nonexistent - "merit" pay is a hollow concept in this regard.
1.4.4 A merit system demands
that managers be willing to make distinctions in merit increases based on
performance. However, several factors get in the way of this happening.
First, the annual salary change is usually a small percentage. Giving the
better performer 2% more than the cost of living has little motivation or
recognition attached to it. Similarly giving the poor performers 2% less
than the cost of living increase is not that much of a penalty. So many
managers don't make that distinction - it is too much hassle. So everybody
gets the same increase.
1.4.5 Second, most
performance appraisal systems are after-the-fact appraisals. In other words,
at appraisal time, which is usually toward the end of the year, managers are
required to evaluate the performance of their staff. It means sitting down
and trying to reconstruct what each staff member did, capturing it in a
non-threatening way, communicating the evaluation without a fuss and
finally, making a merit increase recommendation. Sound like a familiar
pattern? It is a process that repeats itself year after year.
1.4.6 The end result is
usually a lot of avoidance behavior. Managers avoid the appraisal process
like the plague. Although employees profess to want to "know where they
stand" they often take issue with the appraisal. Besides, they don't listen
to the evaluation, they wait until the penny literally "drops". "What is my
rating and how much do I get?" is a constant theme in merit systems where
salary decisions are tied so closely with the appraisal process.
1.4.7 You might well ask is
there any way out of this mess? The answer is fortunately yes. Organizations
that are the best and want to separate themselves from the rest, are turning
away from the merit system and toward an annual incentive system,
particularly for middle and upper management positions but increasingly for
teams and individuals lower down in the organization as well.
1.4.8 They are adopting a
system of annual incentive bonuses linked directly to the achievement of
corporate and individual objectives in three specific areas. The areas are
corporate revenues and gains, cost containment and behavioral changes. The
first two areas are quantitative and the third area, which is gaining in
importance, is qualitative in nature, and has a great deal to do with
building managerial and individual competence.
1.4.9 Why Is This Transition
Occurring? :-Well, there are many challenges facing businesses today and
these challenges are driving them to find better ways of linking pay and
performance to the achievement of corporate results..
CHANGING JOB DESIGN IN IT COMMUNITY
1.5.1 The California State
University (CSU) system is being challenged to meet increasing demands for
educational and administrative services through the innovative use of
technology and human resource systems. Even though funding levels for higher
education have been cut in recent years, public/taxpayer expectations and
the demands for quality education, access, service, and accountability have
grown. Technology initiatives within the CSU have resulted in significant
advances and improved technical capabilities and efficiency. Human resource
and organizational systems are also needed to capitalize on and thrive in
this rapidly changing work environment.
1.5.2 In 1991, the CSU began
a study to look at alternative work and job design approaches to meet these
challenges. The study focused on the information technology community and
how work processes and activities could be better organized to remove
artificial barriers and improve organizational effectiveness, a process
often associated with the term "reengineering." Secondly, the study focused
on developing a job design approach that could adapt to changing skill
requirements and that would promote the continuous acquisition of skills for
knowledge-based employees in information technology. The goal of improved
organizational effectiveness and an orientation towards reengineering and
skills guided the development of the proposed job design approach.
1.5.3 This article begins by
identifying several trends that led to the study, then describes the overall
project within the context of an organizational effectiveness equation. A
new job design approach that was proposed as a result of the study is
presented, including a new classification structure and competency
dimensions and measures for defining and evaluating positions. Finally,
other supporting systems are described for an integrated human resources
approach. The development phase of the project has been completed, and the
CSU anticipates entering into negotiations with its employee representatives
in the near future.
1.5.4 Three trends have had
a direct impact on the development of a strategic job design approach for
the information technology community at the CSU: (a) diversification and
convergence of technology, increased demand for educational access and (b)
changes in instructional delivery methods; and changing work place demands
1.5.5 The technology demands
within higher education lead to a complex and dynamic computing environment.
Academic and administrative computing strategies tend to be at
cross-purposes in terms of defining systems requirements. This has resulted
in widely diverse systems and technology within and across the CSU's twenty
campuses. Increasingly, however, campus systems are becoming more
integrated, as data are shared across multiple platforms on a network
"highway" that is linked to external information sources. Networking and
desktop computing have removed traditional boundaries for information
access, research, and decision-support purposes. Data, voice, and video
technologies continue to be combined in more interactive and user-friendly
1.5.6 In terms of
educational trends, many institutions offer distance learning using various
transmission media and are incorporating instructional technology into
curriculum development. Students expect guaranteed access to technology and
to research databases, and this access has become an issue of social
responsibility. Library and computing functions are becoming increasingly
interdependent in "an infrastructure of scholarly communication" within
higher education. Workplace trends, as presented in Sustaining Excellence
in the 21st Century: A Vision and Strategies for College and University
Administration, well represent the outlook for the CSU. Two key issues are
(1) Economics. There is
increasing pressure to constrain administrative costs within the "labor
intensive cost structure" that exists in higher education. Reductions in
staff are occurring at the same time as transaction volume and service
expectations are growing.
(2) Decentralization of
responsibility. With fewer people and greater access to information,
organizations are moving responsibility for decision-making downward to the
point of service. Work organization is shifting away from job specialization
and a task/procedure orientation, to more generalized job responsibilities
focused on outcome and greater participation on cross-functional teams
(3) Another central
workplace trend is the "earning and learning" environment described by the
U.S. Department of Labor in its Secretary's Commission on Achieving
Necessary Skills (SCANS) report. To quote Thomas P. Foley, Secretary of the
Pennsylvania Department of Labor and Industry:"We've changed from the idea
of "one skill, one job" to the reality of a range of skills that have to
apply to a number of different kinds of professions. More to the point,
workers must possess a skill that they continually upgrade just to keep pace
in the professions they choose."
(4) The influx of new
technology and applications has created a demand for continual learning and
adaptation. Due to the CSU's relatively stable workforce, maintaining skills
to keep pace with changing technology was identified as a critical goal.
Knowledge requirements are expanding to encompass a greater breadth of
technologies and subject expertise, as well as including process-oriented
capabilities such as communication and negotiation skills.
1.5.7 The implications of
these technological , educational, and workplace trends point directly to
the need to reengineer organizational structures, work design, and
processes. Based on these trends and overall organizational goals, two key
objectives were established for a new job design approach for the CSU:
flexibility and skill development. Fundamentally, each campus needs the
flexibility to achieve its goals by distributing work assignments in a way
that optimizes its available skill mix and promotes individual skill
development and initiative.
OBJECTIVES OF STUDY
1.6.1 Following were the
objectives of the study:-
1. To enlist emerging HR
trends in Indian IT Industry
2. To review literature and
research done in this area.
3. To find out lacking areas
regarding the HRD in IT sector.
4. To measure the
perceptions of IT sector employees in respect of application of HRD in their
5. To suggest the measures
to fill the gaps and improve motivation level of employees and HR management
in IT industry.
1.7.1 The study was
exploratory in nature. All published and unpublished 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 organisations were also studied.
Primary and secondary data available with these organisations was also used
for this project study.
1.7.2 In order to measure
the employees perceptions of emerging HR trends in different IT
organisation, 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.
1.7.3 Firstly, the pilot
survey on ten randomly selected respondents was undertaken. Then the
questionnaire was modified accordingly, if desired.
1.7.4 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.
1.7.5 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
Next Chapter ....................HR IT SCENARIO and OUT SOURCING