*Learning to Compete : The Performance Effect of Human Resource Management(A Critical Evaluation of IT Industry in Nagpur)

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

ResearcherMohan SawadeM.B.A. M.I.R.P.M. M.C.M. D.B.M.

Under the Guidance of Dr Vivek Pimplapure

M.B.A., M.Com.,M.Phil.Ph.D.

Welcome to Open Defense A Doctoral Thesis Presentation on

* IntroductionUnder present market forces and strict competition, the Software Companies are forced to be Competitive. Software Companies must seek ways to become more Efficient, Productive, Flexible and Innovative to stay ahead.HR system plays a key role & have a practical impacts on the survival and financial aspects of IT firms besides the productivity and quality of work life of the people in them.

*The practical knowledge of HR has been gained mainly by observing all the activities taking place in HR department. Under present market forces and strict competition, the software companies are forced to be competitive. Software companies must seek ways to become more efficient, productive flexible and innovative under constant pressure to improve results.HR system have important, practical impacts on the survival and financial performance of firms and on the productivity and quality of work life of the people in them HR practices helps in increasing in productivity and quality and to gain the competitive advantage of a workforce strategically aligned with the organization goals and objective.HRA also involves accounting for investment in people and their replacement costs, as also the economic value of people in an organization. Evaluation becomes fairer if it is based on the records of periodic counseling & achievements of the employee, tracked over the year.

Introduction

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

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

HR As A Management Function In IT Industry

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

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

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

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IT Companies In Focus at Nagpur1) Premier Technologies 2) Persistent Technology Group 3) Lambent Technologies 4) Info-spectrum 5) Precision 6) ACES e-technology 7) ADCC Research and Computing 8) Prism Technologies 9) Ascent Transcription Services 10) Central System Provider and etc.

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Hypothesis1) The local IT companies do not implement advanced HRM Systems. 2) More extensive use of High Performance Work Practices will be positively associated with Market Performance.

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Research MethodologyUniverse of the Study The universe selected for the study is Nagpur region.

PopulationThe target population for this study is all the IT Companies in Nagpur region were treated as sample.

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Sample SizeEach and every aspect of human resource management in all IT companies in Nagpur was investigated.

Research Methodology

Sr. No.Sample UnitSample Size01IT Company Employees50002IT Company Officials50

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

Research Methodology

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

Research Methodology

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Data Analysis & Interpretation

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

Gender Wise Classification of Data

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

GenderFrequency% of total respondentMale25566Female13234Total387100

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

Educational Qualification Data Analysis & Interpretation

QualificationNo. of Respondents% of CompositionDiploma6116Graduate21155Post Graduate7519Other4010Total387100

Years of Employment in the Company Data Analysis & Interpretation

Years of EmploymentNo. of Respondents% composition0-2108282-5 yrs206535 & above7319Total387100

Current Designation in the Company Data Analysis & Interpretation

DesignationFrequency% of totalManager328Software Developer19550Hardware and system specialist8221Administrative Staff4512Other339Total387100

Professional Relationship with Colleagues Data Analysis & Interpretation

DesignationFrequency% of totalYes28674No6426Cant say3710Total387100

Career Advancement Data Analysis & Interpretation

DesignationFrequency% of totalYes32283No4512Cant say205Total387100

Recreational ActivitiesRecreational activity is one of the vital part in employees commitment towards organizational goals.Recreational activity is one of the vital part in employees commitment towards organizational goals. Data Analysis & Interpretation

ResponseFrequency% of totalYes35090No3710Total387100

Recognition for AchievementsOne of the key factor for motivating and increasing employees commitment is recognition for achievement. On analyzing this point it is revealed that there is good numbers of employees are getting the recognition for their achievementsRecreational activity is one of the vital part in employees commitment towards organizational goals. Data Analysis & Interpretation

DesignationFrequency% of totalYes21656No339SOME TIME13836Total387100

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

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Result of t- test

Since the Sig. value is greater than 0.05. The Hypothesis Local IT Companies do not implement advanced HRM system was supported.

Variablep valueHRM PractisesTraining 0.92Performance Appraisal0.91Rewards0.63Benefits0.21Working Condition0.32Equal Employment Opportunity0.38Information Sharing0.5

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Hypothesis Testing More extensive use of High Performance Work Practices will be positively associated with market performance

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Hypothesis TestingThere is a significant relationship between an organizations business strategy, HR systems and employee relations strategy; specifically, incentive HR strategy and Traditionalist strategy are more likely to be found in champion organizations; Investment HR strategy and Sophisticated moderns strategy is more likely to be found in Analyzer organizations, and Involvement HR strategy and Standard modern strategy is more likely to be found in Prospector organizations.

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Hypothesis Testing Therefore ,Hypothesis More extensive use of High Performance Work Practices will be positively associated with market performance was supported.

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Findings 1) Majority of sample respondents are belonging to age group of 18 to 25 years.

2) The majority of sample respondent in the study are having the maximum qualification as Graduate. The main reason behind this may the early openings of job in this sector.

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3) Regarding the holding of current designation in the organization 50% of the sample respondents are software developers, whereas 21% are hardware and system specialist.

4) Around 75% i.e. 290 respondent said there is a possibility to talk to your boss about subjects not related to business,

Findings

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

6) The findings in this study show that the respondents prefer a challenging and interesting work. The same result has been found in studies that showed that the majority of the IT professionals feel that an interesting and challenging work is an important motivational factor for performing a good work.

Findings

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7) There is ample opportunity exist in the current organization for career advancement, around 83% of the total respondent said they find very good career advancement in the organization in which they are working currently.

8) There is good numbers of employees are getting the recognition for their achievements, though there might be having a differential policy for recognition for achievement.

Findings

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9) Many a time organizations promote their employees for further studies as around 60% of the employees have given conformity for this question, very negligible employees have given negative response. 24% of employees said it offered on occasional basis, keeping merit factor in to consideration.

10) Many organizations have accepted the role of HR executives is one of the main concerns for formulating firm strategy for success.

Findings

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11) It has also been found that job satisfaction has been related to employees supervision and pay satisfaction, which is evidence that monetary incentives are a motivating factor.

12) It is observed that if the management gives more attention to training and career development to their employees, it will be a step for gaining superior employee commitment, which in return, it can enhance, organizational knowledge management.

Findings

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Conclusion 1) The results from the study conclusively indicate that when selection, compensation, and appraisal HR practices interacted with highly employee participative management systems , it will have a significant and strong positive relationship to financial performance of the organization.

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

Conclusion

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

Conclusion

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

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

Conclusion

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Suggestions 1) Many IT company officials have suggested that HRM has to focus on developing a model that examines hierarchical impacts of HRM on organizational performance.

2) HRM should focus on developing measures of organizational performance that can be used for organizations at business unit level.

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3) For the Success of organization management has to try and maintain a good communication for constant flow of information and to make the employees feel that they really are part of the organization.

Suggestions

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Thank You !

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