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“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
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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.
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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
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.
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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
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
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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.
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• 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
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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.
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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.
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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.
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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
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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
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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
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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.
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. 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
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. 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. 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
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. 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
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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.
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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 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.
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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 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
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
