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CHAPTER 5

 

SURVEY ANALYSIS OF HR TRENDS

 

5.0                 SURVEY BACKGROUND

5.0.1              HR management gets best out of its employees to meet the organisation's goals.  And employees are the best judge of the HR policies of any organisations. IT sector is fastly growing industry in India and  HR requirements of Indian IT Industry are quit different from traditional industrial sectors.., A  major characteristic of modern socio-economic development has been the increasingly  dominant role of service sector .and IT belongs to service sector. So, its HR needs must also be properly identified..

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

5.0.3                 To measure the success and failures of emerging HR trends of Indian IT Industry a structured questionnaire was designed for this purpose. The questionnaire included both open ended and close ended questions. The questionnaire used is placed at Appendix "I". The  procedure  adopted  for  data  collection   was  interview with  the  employees randomly selected from IT organisations to the extent possible and also through mail. . The responses given by the respondents were recorded  on  the  questionnaire. The views expressed by the respondents has been analysed in the succeeding paragraphs. About 100 respondents were selected by convenient random sampling technique.

5.1            RESPONDENTS PROFILE 

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

5.1.2                                 IT industry requires higher level of education standards, both non-technical and technical. The education qualification wise  distribution  of  the  employees who agreed for responding to our  questionnaire has been given below in Table 5.1.

     Table 5.1

                          RESPONDENTS PROFILE - EDUCATION-WISE

(%age)

Respondents' Qualification

Percentage Of Respondents

Non-Tech Graduate and Below

11%

Non-Tech  Post Graduate

23%

 B.Tech/ BCA etc.

34%

M.Tech/MCA Etc.

32%

TOTAL

100%

5.1.3                                                           In the similar fashion the job wise profile of the respondents has also been compiled and the same is tabulated below in the Figure  5.2. As per Figure  the IT industry is dominated by the software professionals  And next computer hardware and marketing services of IT are sharing the other half. Only 13 percent are working in HR and Personnel Management area.  Hence, the HR needs of IT industry must look after  the software professionals at priority.

5.2       WHETHER HR NEEDS OF INDIAN IT INDUSTRY ARE DIFFERENT

    5.2.1                                        Through the Question  No.2 of the questionnaire the respondents  were asked to comment whether the HR needs  of Indian IT industry are  different from traditional HR Management systems. It was a direct question in Yes/NO/No comments format and IT professionals selected for survey were asked to tick one of the choices as mentioned. The responses have been tabulated in Table 5.3. The majority of respondents (69%) view that HR needs of IT industry are different from old economy sector and HR managers in IT industry has to   keep this into mind.  Being highly educated employees are very sensitive in pride and behaviour.

TABLE-5.3

                   Emerging  HR   TRENDS  OF INDIAN  IT  INDUSTRY  

                     ARE  DIFFERENT

        (%age)

Respondents' Observation

Percentage Of Respondents

Yes

69%

No

23%

Can not say

08%

TOTAL

100%

5.3              EFFECT OF NEW COMPENSATION METHODS

5.3.1         The IT industry has been devising newer compensation methods like Profit Sharing/ Stock Options etc. to increase employee welfare and retentively. Whether these new compensation techniques are positively effecting or not was the key point in our next question. As per Figure-5.4, 46% of the employees opined that newer compensation methods has a positive effect in IT industry   while 19%  said that it has a negative effect on employee welfare. 26% view that it has no major effect and 9 percent has replied in CAN NOT SAY. . In the initial stages when IT Industry was sunrise it was mostly welcomed by the employees and when IT industry share prices has gone down. It has a negative effect..

5.4         WHETHER IT INDUSTRY HAS POSITIVE   ATTITUDE TOWARDFS ITS EMPLOYEES

5.4.1        In  has been found  that in  many  organisations  the  management ignores the employees welfare for their profit sake and does not give proper attention towards employees career and prospects. What is the state of affairs in IT Industry in India was quizzed from our valued learned respondents. The respondents  views are given below Table 5.5.  The results are mixed one. While 48% of the respondents' replied in negative and 43% gave a positive reply. So, there is a  profit motive operating more than employees proper welfare management in Indian IT Industry.

 

          TABLE - 5.5

                   WHETHER  IT INDUSTRY HAS A  POSITVE

                   ATTITUDE TOWARDS ITS EMPLOYEES

        (%age)

Respondents' Observation

Percentage Of Respondents

Yes

43%

No

48%

No comments

09%

TOTAL

100%

5.5                 STATE OF  GRIEVANCES  HANDLING IN INDIAN IT  INDUSTRY

5.5.1           The respondents  responses to the status of  grievances  handling  mechanism  was through  an  indirect  approach. In the Question No. 5 of the questionnaire the respondents   were  to  comment  upon  the  positive  hypothesis   that   grievance handling is done properly in the  IT  organisation. The five choices provided were strongly agree, agree, no comments, disagree and strongly disagree. The data collected is given below in Table-5.6.

       TABLE - 5.6

       GRIEVANCE HANDLING IN

     INDIAN IT INDUSTRY IS PROPER

                                                                                           (%age)

Respondents' Observation

Percentage Of Respondents

Strongly Agree

12%

Agree

39%

 No Comments

14%

Disagree

26%

Strongly Disagree

09%

TOTAL

100%

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

5.6         TOP   MANAGEMENT  AWARENESS

5.6.1            Whether top management awareness about working conditions of  the employees and state of working conditions in  the organisation was measured through next question.  Table-5.7 shows the response. 65% of  the respondents view that the top  management's  are  not aware or little aware about  the  employees working  conditions  in  the IT organisations Only 6 percent  vouched that top management is very  well  aware  about the nature of working conditions and 18  percent say   "Much  Aware".

     Table 5.7

            TOP MANAGEMENT AWARENESS

                                                   (%age)

Respondents' Observation

Percentage Of Respondents

Not at all aware

20%

Very little  aware

45%

Some what aware

11%

Much aware

18%

Very much aware

06%

TOTAL

100%

5.7            EMPLOYEE EMPLOYER RELATIONSHIP IN IT INDUSTRY

5.7.1                              Cordial employee employer relationship is very essential in the upcoming highly competitive economy. The state of employee employer relationship in Indian IT Industry was measured through the   next  question. The state of employee-employer relationship is not very encouraging.

              Table 5.8

                   STATE OF EMPLOYEE EMPLOYER

                 RELATIONSHIP IN IT INDUSTRY

                                                                                         (%age)

Respondents Grading

Percentage Of  Respondents

Excellent

14%

Very Good

44%

Satisfactory

28%

Poor

14%

TOTAL

100%

5.7.2            58 percent of the respondents has graded it very good and  above.  While 42 percent consider it satisfactory and below. The employment of modern technology requires more positive and effective relationship between management and the employees. Indian IT Industry has very effective employee employer relationship.

5.8                EMPLOYEES   RETENTIVITY   IN   INDIAN   IT INDUSTRY

5.8.1           The most of the employees of IT sector are highly educated and sensitive in nature. Moreover, the opportunities outside are very attractive, Whether Indian IT Industry is able to retain its employees was the next opinion query from the randomly selected IT industry employees. Their opinions in this regard are presented below in "YES/NO/NO COMMENTS" format in the Figure 5.9.

5.8.2         61% of the employees view that Indian IT companies are unable to retain its employees due to  most attractive avenues outside. Only 23%  viewed that they are able to retain the employees.

5.9                HOW TO INCREASE EMPLOYEES   RETENTIVITY   IN   INDIAN   IT INDUSTRY

5.9.1           As has been observed in general and also concluded in previous paras that the IT sector employees in India are very quickly jumping the employment. So, what the employers has to do for retaining its professionals was asked from the respondents. Few suggestions were listed and one column was open ended to express their any other suggestion. The Table 5.10 list outs all the suggestions. I

TABLE- 5.10

 

       SUGGESTIONS FOR INCREASE RETENTIVITY

IN INDIAN IT INDUSTRY

Respondents' Suggestions

Percentage Of Respondents

Increase wages to international levels

22%

Increase foreign postings

36%

Increase profit sharing

10%

More promotions

11%

Others

21%

TOTAL

100%

(%age)

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

 5.10      APPLICABILITY  OF  EXISTING INDIAN  LABOUR  LAWS    IN  INDIAN  IT  INDUSTRY

5.10.1                          "Existing Indian labour Laws/Rules are not strictly applicable to Indian IT Industry as IT sector employees are quite different from general factory workers and are well educated and trained. The separate Labour to whether as a Laws/Rules should be designed for IT Industry:. This hypothesis was presented to the respondents. They were to respond upto which extent they agree or disagree. The employees responses have been  tabulated below in the Table 5.11. The comfortable majority of respondents (89%) strongly agree or agree with the hypothesis that Indian IT sector requires separate labour management system/ regulations. While only minority of 13% has given divergent views. Low

    TABLE-5.11

                 INDIAN IT INDUSTRY REQUIRE

                 SEPARATE LABOUR LAWS/ RULES

                                                                                  (%age)

Respondents' Observation

Percentage Of Respondents

Strongly Agree

57 %

Agree

32  %

 No Comments

02%

Disagree

07%

Strongly Disagree

02%

TOTAL

100%

5.11          EFFECTIVENESS  OF  OLD AGITATIONAL METHODS  IN  IT INDUSTRY

5.11.1        Whether IT industry can afford old traditional trade union methods of agitations like Strike or Gherao etc. was also asked from the employees. The question was direct in nature of Yes or No. As has been listed in Figure 5.12 below, 67% of the respondents has given their reply in No and 28% answered in affirmative. 5% has ticked No Comments choice. So, it is concluded that old agitational techniques of trade unions are not desired in IT industry.

5.12        EFFECT OF EXCESSIVE COMPETION IN INDIAN IT INDUSTRY

5.12.1        Whether excessive competition in Indian IT sector is harming the overall long term prospects of employees in this sector The respondents  opinion is tabulated below in Table 5.13. The table above clearly indicates that excessive competition is observed as harmful to the employees prospects. . 53 percent of the respondents has replied in Yes to this question.  While 35% has a negative viewpoint.

TABLE - 5.13

    EXCESSIVE COMPETITION IS HARMING

     EMPLOYEES LONG TERM  WELFARE

(%age)

Respondents' Observation

Percentage Of Respondents

Yes

53%

No

35%

No Comments

12%

TOTAL

100%

 

5.13              ROLE OF  TRADE UNION IN IT INDUSTRY

5.13.1      The respondents were asked to comment upon whether Indian IT Industry needs a trade union or management's are looking after the employees interest in the best possible manner. The Table 5.14 shows the responses in this regard.

Table 5.14 

ROLE OF TRADE UNION IN IT INDUSTRY

                                                                            (%age)

Respondents Grading

Percentage Of  Respondents

No Trade Union

21%

Single Trade Union

13%

Multi Trade Union

09%

Only welfare association

57%

Total

100%

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

5.14          OVERALL  ASSESSMENT OF EMERGING HR TRENDS  IN INDIAN IT INDUSTRY

5.14.1      In the end  respondents were asked to give their overall assessment/ grading of emerging HR trends in Indian IT Industry. The overall assessment on five point scales of excellent, very good, good, satisfactory and poor is tabulated below in the Table 5.15.   65% of the respondents were in positive grading of excellent, very good and good. While 35%  gave a assessment of satisfactory and poor

 

Find the 4th Chapter ....................IT SECTOR COMPENSATION METHODS

 

Find the next chapter ......................... SUMMARY AND CONCLUSION


 

 



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