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1
“Learning to Compete : The Performance
Effect of Human Resource Management’
(A Critical Evaluation of IT Industry in Nag...
2
Introduction
• Under present market forces and strict
competition, the Software Companies are
forced to be Competitive.
...
3
The practical knowledge of HR has been
gained mainly by observing all the
activities taking place in HR department.
Unde...
4
HR As A Management
Function In IT Industry
• The knowledge economy encompasses all
jobs, companies, and industries in wh...
5
• Human know-how is a crucial component in
virtually everything we produce, and it
determines how we produce valued good...
6
Rational of the Study
• The primary purpose of this research is to provide a
careful description of the various workplac...
7
Objective of the Study
• To study the HRM practices and policies
adopted and implemented in IT companies
in Nagpur.
• To...
8
• To analyze the investment in Human
Resources Management which can contribute
to a firm’s efficiency by improving the s...
9
IT Companies In Focus at Nagpur
1) Premier Technologies
2) Persistent Technology Group
3) Lambent Technologies
4) Info-s...
10
Hypothesis
1) The local IT companies do not implement
advanced HRM Systems.
2) More extensive use of High Performance W...
11
Research Methodology
Universe of the Study
The universe selected for the study is Nagpur
region.
Population
The target ...
12
Sample Size
• Each and every aspect of human resource
management in all IT companies in Nagpur
was investigated.
Sr. No...
13
Method of Sampling
• For the purpose of this study Non-probability
sampling technique of Quota Sampling was
employed as...
14
Tools of Data Collection
Pre-designed questionnaire and pre-structured
Interview schedules was canvassed for collecting...
15
Data Analysis &
Interpretation
• For the purpose of study 500 respondents were
identified and questionnaire were distri...
Gender Wise Classification of Data
Gender Frequency % of total
respondent
Male 255 66
Female 132 34
Total 387 100
The mai...
Classification on the basis of Age
Majority of respondents are belonging to the age group of 26
years to 35 years which in...
Educational Qualification
Qualification
No. of
Respondents
% of Composition
Diploma 61 16
Graduate 211 55
Post Graduate 75...
Years of Employment in the Company
Years of
Employment
No. of
Respondents
%
compositio
n
0-2 108 28
2-5 yrs 206 53
5 & abo...
Current Designation in the Company
Designation
Frequen
cy
% of
total
Manager 32 8
Software
Developer
195 50
Hardware and
s...
Professional Relationship with Colleagues
Designation Frequency % of total
Yes 286 74
No 64 26
Can’t say 37 10
Total 387 1...
Career Advancement
Designation Frequency % of total
Yes 322 83
No 45 12
Can’t say 20 5
Total 387 100
Data Analysis &
Inter...
Recreational Activities
Response Frequency % of total
Yes 350 90
No 37 10
Total 387 100
Recreational activity is one of th...
Recognition for Achievements
One of the key factor for motivating and increasing employees commitment
is recognition for a...
25
Hypothesis Testing
“ Local IT Companies do not implement
advanced HRM system.”
26
Result of t- test
Variable p – value
HRM Practises  
Training 0.92
Performance Appraisal 0.91
Rewards 0.63
Benefits 0.2...
27
Hypothesis Testing
“ More extensive use of High Performance
Work Practices will be positively associated
with market pe...
28
Hypothesis Testing
There is a significant relationship between
an organization’s business strategy, HR
systems and emp...
29
Hypothesis Testing
Therefore ,Hypothesis “ More extensive use
of High Performance Work Practices will be
positively ass...
30
Findings
1) Majority of sample respondents are
belonging to age group of 18 to 25 years.
2) The majority of sample resp...
31
3) Regarding the holding of current
designation in the organization 50% of the
sample respondents are software
develope...
32
5) The professional relationship with the
employees working in the organization is
very solid and healthy.
6) The findi...
33
7) There is ample opportunity exist in the
current organization for career
advancement, around 83% of the total
respond...
34
9) Many a time organizations promote their
employees for further studies as around
60% of the employees have given
conf...
35
11) It has also been found that job
satisfaction has been related to employee’s
supervision and pay satisfaction, which...
36
Conclusion
1) The results from the study conclusively
indicate that when selection,
compensation, and appraisal HR
prac...
37
2) The area of selection is widely diverted
from Intelligent Quotient (IQ) to
emotional Quotient (EQ). Organisations
ar...
38
3) Study successfully examines the case of
adjustment in a low-cost, labor intensive
model , to understand how traditio...
39
4) The study clearly indicated that IT firm
dependent on the factors like size, age,
network of firm and it plays a key...
40
Suggestions
1) Many IT company officials have suggested
that HRM has to focus on developing a
model that examines hiera...
41
3) For the Success of organization
management has to try and maintain a
good communication for constant flow of
informa...
42
Thank You !
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  1. 1. 1 “Learning to Compete : The Performance Effect of Human Resource Management’ (A Critical Evaluation of IT Industry in Nagpur) Submitted to RashtraSant Tukdoji Maharaj Nagpur University, Nagpur for the Award of Degree of Doctor of Philosophy In the Faculty of Commerce (Board of Studies in Business Management & Administration) Researcher Mohan Sawade M.B.A. M.I.R.P.M. M.C.M. D.B.M. Under the Guidance of Dr Vivek Pimplapure M.B.A., M.Com.,M.Phil.Ph.D. Welcome to Open Defense A Doctoral Thesis Presentation on
  2. 2. 2 Introduction • Under present market forces and strict competition, the Software Companies are forced to be Competitive. • Software Companies must seek ways to become more Efficient, Productive, Flexible and Innovative to stay ahead. • HR system plays a key role & have a practical impacts on the survival and financial aspects of IT firms besides the productivity and quality of work life of the people in them.
  3. 3. 3 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
  4. 4. 4 HR As A Management Function In IT Industry • The knowledge economy encompasses all jobs, companies, and industries in which the knowledge and capabilities of people, rather than the capabilities of machines or technologies, determines competitive advantage. • The manufacturing sector is also becoming more dependent on knowledge and human capabilities as microprocessors and computers pervade almost every facet of work.
  5. 5. 5 • 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
  6. 6. 6 Rational of the Study • The primary purpose of this research is to provide a careful description of the various workplace practices used by Indian IT companies and to examine the effect of these different practices on their performance. • The Study will also uncover the details of workplace practices in an environment that has not been widely researched in the past and in IT industry which is a vital source of livelihoods for low income groups and source of foreign exchange for many less developed countries
  7. 7. 7 Objective of the Study • To study the HRM practices and policies adopted and implemented in IT companies in Nagpur. • To study the effect of particular human resource policies and practices, and systems on performance of employees. • To analyze the role of HR in developing organizational competencies. • To identify the HR practices for high performing employee engagement.
  8. 8. 8 • To analyze the investment in Human Resources Management which can contribute to a firm’s 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
  9. 9. 9 IT Companies In Focus at Nagpur 1) Premier Technologies 2) Persistent Technology Group 3) Lambent Technologies 4) Info-spectrum 5) Precision 6) ACES e-technology 7) ADCC Research and Computing 8) Prism Technologies 9) Ascent Transcription Services 10) Central System Provider and etc.
  10. 10. 10 Hypothesis 1) The local IT companies do not implement advanced HRM Systems. 2) More extensive use of High Performance Work Practices will be positively associated with Market Performance.
  11. 11. 11 Research Methodology Universe of the Study The universe selected for the study is Nagpur region. Population The target population for this study is all the IT Companies in Nagpur region were treated as sample.
  12. 12. 12 Sample Size • Each and every aspect of human resource management in all IT companies in Nagpur was investigated. Sr. No. Sample Unit Sample Size 01 IT Company Employees 500 02 IT Company Officials 50 Research Methodology
  13. 13. 13 Method of Sampling • For the purpose of this study Non-probability sampling technique of Quota Sampling was employed as the sample size was small and fixed and the sampling unit was clearly defined. • Questionnaire asked for all the categories were closed ended. • Both Descriptive and exploratory research was used in compiling this study. Research Methodology
  14. 14. 14 Tools of Data Collection Pre-designed questionnaire and pre-structured Interview schedules was canvassed for collecting primary data to study each and every aspect of Human Resource Management in IT Companies in Nagpur. Research Methodology
  15. 15. 15 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.
  16. 16. Gender Wise Classification of Data Gender Frequency % of total respondent Male 255 66 Female 132 34 Total 387 100 The main reason for difference in ratio of male & female respondents is the actual ratio of employees recruited in the selected IT firms are approximately 70:30 (male: female) Data Analysis & Interpretation
  17. 17. 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
  18. 18. Educational Qualification Qualification No. of Respondents % of Composition Diploma 61 16 Graduate 211 55 Post Graduate 75 19 Other 40 10 Total 387 100 Data Analysis & Interpretation
  19. 19. Years of Employment in the Company Years of Employment No. of Respondents % compositio n 0-2 108 28 2-5 yrs 206 53 5 & above 73 19 Total 387 100 Data Analysis & Interpretation
  20. 20. Current Designation in the Company Designation Frequen cy % of total Manager 32 8 Software Developer 195 50 Hardware and system specialist 82 21 Administrative Staff 45 12 Other 33 9 Total 387 100 Data Analysis & Interpretation
  21. 21. Professional Relationship with Colleagues Designation Frequency % of total Yes 286 74 No 64 26 Can’t say 37 10 Total 387 100 Data Analysis & Interpretation
  22. 22. Career Advancement Designation Frequency % of total Yes 322 83 No 45 12 Can’t say 20 5 Total 387 100 Data Analysis & Interpretation
  23. 23. Recreational Activities Response Frequency % of total Yes 350 90 No 37 10 Total 387 100 Recreational 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
  24. 24. Recognition for Achievements One of the key factor for motivating and increasing employees commitment is recognition for achievement. On analyzing this point it is revealed that there is good numbers of employees are getting the recognition for their achievements Recreational activity is one of the vital part in employees commitment towards organizational goals. Designation Frequency % of total Yes 216 56 No 33 9 SOME TIME 138 36 Total 387 100 Data Analysis & Interpretation
  25. 25. 25 Hypothesis Testing “ Local IT Companies do not implement advanced HRM system.”
  26. 26. 26 Result of t- test Variable p – value HRM Practises   Training 0.92 Performance Appraisal 0.91 Rewards 0.63 Benefits 0.21 Working Condition 0.32 Equal Employment Opportunity 0.38 Information Sharing 0.5 Since the Sig. value is greater than 0.05. The Hypothesis “ Local IT Companies do not implement advanced HRM system ” was supported.
  27. 27. 27 Hypothesis Testing “ More extensive use of High Performance Work Practices will be positively associated with market performance ”
  28. 28. 28 Hypothesis Testing There is a significant relationship between an organization’s 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.
  29. 29. 29 Hypothesis Testing Therefore ,Hypothesis “ More extensive use of High Performance Work Practices will be positively associated with market performance ” was supported.
  30. 30. 30 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.
  31. 31. 31 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
  32. 32. 32 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
  33. 33. 33 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
  34. 34. 34 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
  35. 35. 35 11) It has also been found that job satisfaction has been related to employee’s 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
  36. 36. 36 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.
  37. 37. 37 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
  38. 38. 38 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
  39. 39. 39 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
  40. 40. 40 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.
  41. 41. 41 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
  42. 42. 42 Thank You !

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