Human capital management

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  • 1. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –Journal of Management Research and Development (JMRD),9390(Online), Volume 1, Number 1, January - December (2011)ISSN 2248 – 937X (Print)ISSN 2248 – 9390(Online), Volume 1, Number 1 JMRDJanuary - December (2011), pp. 47-51 © PRJ PUBLICATION© PRJ Publication, HUMAN CAPITAL MANAGEMENT IS THE KEY FACTOR FOR THE SUCCESS OF IT INDUSTRY 1 Saranya R and 2 Muthumani S 1 Research Scholar, Sathyabama University, Chennai. 2 Research Guide, Sathyabama University, Chennai. email-id:saranyajagadeeswaran@gmail.comABSTRACT Human Capital is increasingly recognised as a key competitive advantage for companies,as well as a key indicator of a company’s success. There is a growing body of evidence that thequality of Human Capital Management is an important factor in a businesss competitiveadvantage, and correlated with competitive performance. Companies need to manage HumanCapital through all the phases of an employee’s work life - from recruitment to development toretention. Human Capital Management involves getting the right people, with the right skills, inthe right position, at the right time, rewarding them with the right incentives to perform the rightfunction in the right environment, to most effectively perform the work of the organization. Italso involves training/developing the capital, improving their output/productivity.KEYWORDS : Human Capital Management, Human Asset.INTRODUCTION A business strategy that links the competencies, motivations and satisfactions of its employeesdirectly with drivers of value for customers, which in turn drives profitability for the enterprise.Human Capital decisions are guided by data-driven, results-oriented planning and accountabilitysystems. The keys to a successful HCM strategy are process efficiencies, effective use ofinformation technology and business metrics. Human Capital Management is a yet anotherimportant aspects with perspective to IT industries. It is must to identify the prospect employeeswho are highly talented towards their work areas. So measuring the capability of employees willbe possible through talent management and also we can retain them .METHODOLOGY Research is an art of scientific investigation. The data collection pertaining to the studyinvolves on the basis of primary data and secondary data. In this study the samples were drawnusing stratified random sample method. The estimated total sample size is 75, out of which 61were collected back and 50 were useful for the study. The respondents were the employeesworking in IT industries in Chennai City. The study was carried out with the objectives of 47
  • 2. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –9390(Online), Volume 1, Number 1, January - December (2011)evaluating the effectiveness of Human Capital Management in the organisation and to increasethe value of employees. Mainly it also aims to evaluate the impact of training and developmentof the employees to improve their level of productivity.RESULTS AND DISCUSSIONAfter the data collected the data are compiled by using the appropriate statistical applications.The results are shown in the form of tables and interpretations.Table 1. Table showing that the level of motivation of employees towards their Job. NO OF S.NO OPTIONS PERCENTAGE RESPONDENTS 1 Strongly 0 0 Disagree 2 Disagree 5 10 3 Undecided 5 10 4 Agree 28 56 5 Strongly Agree 12 24 Total 50 100INFERENCE: It is clearly understood that most of the employees agree that the level ofmotivation of employees towards their job is high.Table 2 Table showing that the level of dedication of employees towards their Job. S.NO OPTIONS NO.OF PERCENTAGE RESPONDENTS 1 Strongly Disagree 0 0 2 Disagree 5 10 3 Undecided 5 10 4 Agree 28 56 5 Strongly Agree 12 24 Total 50 100INFERENCE: It is clearly understood that majority of the employees are highly dedicatedtowards their Job areas. 48
  • 3. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –9390(Online), Volume 1, Number 1, January - December (2011)RANKING METHODTable 3 Table showing that the performance level of employees through their training OBSERVED COUNT OPINIONS 1 2 3 4 5 TOTALFACTORSEMPLOYEE’SARE WELL 0 5 2 30 13 50QUALIFIEDRECEIVEAPPROPRIATE 0 3 6 28 13 50TRAININGTRAINING 0 4 5 25 16 50LEVEL ISHIGHEDUCATION 0 1 2 16 31 50NEEDSWEIGHTED AVERAGE TABLEWEIGHTS FACTORSW X1 WX1 X2 WX2 X3 WX3 X4 WX45 13 65 13 65 16 80 31 1554 30 120 28 112 25 100 16 643 2 6 6 18 5 6 2 62 5 10 3 6 4 8 1 21 0 0 0 0 0 0 0 0TOTAL 50 201 50 201 50 194 50 227CW 4.02 4.02 3.88 4.54Rank 3 4 2 1 49
  • 4. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –9390(Online), Volume 1, Number 1, January - December (2011)INFERENCE: Education needs is ranked as 1, level of training as rank 2, Qualification ofemployees as rank 4 for appropriate training received by the employees.Table 4 : Table indicating the level of Human Capital Management OBSERVED COUNT OPINIONS 1 2 3 4 5 TOTALFACTORSHIRING 0 1 10 33 6 50PEOPLECREATIVITY & 0 11 5 36 7 50INNOVATIONEMPLOYEES 0 1 6 32 11 50ATTITUDE &INTELLIGENCESOLVE 0 2 6 34 8 50COMPLEXPROBLEMSEMPLOYEE’SSKILLS & 0 1 6 30 13 50KNOWLEDGESUGGESTIONS • Employers in the organization are happy and satisfied with organization’s support for continuing their education needs. Training received by the employee should be based upon their needs and the level of motivation should be more in order to increase employees dedication towards organization and to attain the organization’s goals. • Organization value alignment should be developed according to the desires of employees. • High morale should be maintained which directly leads to high productivity in the organization. • Employees information sharing with superiors, subordinates and peers should be increased. • Organisation should increase the value of employee by motivation, high pay, training and development programs so that it reduces the retention level of employees. 50
  • 5. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –9390(Online), Volume 1, Number 1, January - December (2011)CONCLUSION The study about the human capital management will have an impact towards identifyingthe areas in which the management should be concentrated. From the overall study on the humancapital management, it is understood that majority of the respondents are expecting appropriatetraining, good salary should be given to employees and company should focus on hiring mosttalented people. Most of the respondents are satisfied with the team work. So the organizationshould ensure that adopting proper strategies and policies towards concentrating on the views ofthe employees will help the organization to achieve the prospective goals as well as it improvesthe level of intelligence of the employees wherein which restraint the disputes and thereupon theemployees will have congenial relationship with all the people.REFERENCES 1. Angela Baron &Michael Armstrong (April 2007). ‘Human Capital Management : achieving added value through people, Kogan Page Publishers’. 2. John F.Tomer ‘The Human Firm:A Socio-economic analysis of its behaviour and Potential in a new economic’ 3. Ronald J.Burke,Cary L.Cooper ‘Reinventing Human Resource Management Challenges and New Directions’. 4. Patrick M,Wright & Gary C.MCMahan ‘Exploring HUMAN Capital ; putting ‘human’ back into Strategic Human Resource Management’ Volume 21, Issue 2, pages 93-104 – April2011. 5. Becker G.S (2002) ‘The Age of Human Capital Education in the Twenty-First Century’. 6. Wright P & Snell S(1998) ‘Towards a Unifying Framework for Exploring fit and flexilibility in Strategic Human Resource Management’ - Academy of Management Review 23, Page756-772. 51