A_DISSERTATION_REPORT_HR_PRACTICES.docx
- 1. A DISSERTATIONREPORT ON STUDY ON BEST HR PRACTICES IN IT INDUSTRY BY RUPALI MALI SUBMITTED TO SAVITRIBAI PHULE PUNE UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF PROF.UMESH GRAMOPADHAY THROUGH DR. VIKHE PATIL FOUNDATION’S PRAVARA CENTRE FOR MANAGEMENT RESEARCH AND DEVELOPMENT PUNE-411016 2017-2019
- 2. ACKNOWLEDGEMENT I am overwhelmed in all humbleness and gratefulness to acknowledge all those who have helped me to put the ideas, well above the level of simplicity and into something concrete. I owe a great debt to my guide Prof. UmeshGramopadhaywho provided information and support to me at every stage of this work. His wisdom, knowledge and commitment to the highest standards inspired and motivated me. My gratitude is also due to our Director Dr. Manoj Narwade, for his unconditional support and guidance. Rupali Mali
- 3. DECLARATION I hereby declare that the project titled “Best HR practices in it industry” is an original piece of research work carried out by me under the guidance of Prof. UmeshGramopadhaythe information has been collected from genuine & authentic sources. The work has been submitted in partial fulfilment of the requirement of degree of Master of Business Administration to SavitribaiPhule Pune University. Date: Place: Pune RupaliMali
- 4. INDEX Acknowledgements Declaration Index List of Tables List of Figures Chapter 1 Introduction Chapter 2 Review of Literature Chapter 3 Research Methodology 3.1 Objectives of Study 3.2 Significance of Study 3.3 Scope of Study 3.4 Data Collection 3.5 Tools of Analysis 3.6 Limitations of Study
- 5. Chapter 4 Data Analysis and Interpretation Chapter 5 Conclusion 6.1 Findings 6.2 Suggestions 6.3 Conclusion References
- 6. LISTOFTABLES Table No Description Page No. Table No Table No Table No Table No Table No Table No Table No Table No Table No Table No Table No Table No
- 7. LISTOFFIGURES Figure No Description Page No. Figure No Figure No Figure No Figure No Figure No Figure No Figure No V
- 8. Chapter No – 1.
- 9. Introduction Indiawasdeclareditselfopento Liberalizationinthe year1991.Thispavedthewayforindustrializationand rapid transformation in the Industry and Business sector Liberalization also meant change in the working style of the people and hence organizations needed to innovate the HRM practices in an effort to ensure survival in an increasingly hypercompetitive environment. (Som, July 2008) (Muduli, June 2012). The key challenges of any HR department are employee acquisition, retention, developing employees, performance management, and talent-management according to (Ramlall, 2009).Seeking, developing and engaging and keeping talent is a big challenge for today’s organizations because of innumerable options available outside (Ramlall, 2009). This is especially true for the Indian IT industry. Hence, (Ramlall, 2009) argues that if companies continue to implement or use the traditional ways of Human Resource practices, is it quite doubtfulwhethertheHRmanagerwouldbeabletosustaintheorganizationduringaneconomicdownturn. 1.1 HRMinIndia 1.2 Previous research has shown that Human Resource Management is one of the most important determinants of organizational performance or efficiency. According to (Stephen A. Stumpf, May-June 2010) companies functioning in India create a robust human resource team by incorporating a strong organized HR practice in place.The authors, (Stephen A. Stumpf, May-June 2010)compared the HRM practices implemented in private and public sector in India, and found some startling facts, such as the HR practices usedinthetwo sectors werequitesimilar on parameters such as 1)thestructureoftheHR department, 2) role of the HR manager in corporate change, 3) recruitment and selection process, 4) compensation andbenefits, 5)traininganddevelopment,6)employee engagement, 7) andemphasis on key HRM Strategies. It is also found that on certain parameters such as the compensation and training and development, the private sector seemed to have adopted a practical approach such as screening and testing of job applicants to ascertain the applicant’s job-fitness, training need analysis, training evaluation, etc. These authors are also of the opinion that Indian companies whether big or small implement HRM practices such as employee involvement practices, training and development practices,employee welfare practices,managingemployeerelations tomanageemployees. (StephenA. Stumpf, May-June 2010) Foreign MNC’s have also realized the potential of Indian employees, and hence are entrusting them to take up higher responsibilities. This is especially true in the Information technology business. For example, IBM’s Indian workforce increased from 9,000 in 2004 to 50,000 in 2007 and GE gave the Business Process outsourcing job to Genpact, which is India’s largest BPO organization and has a head count of nearly 30,000 employees. Accenture also expects its Indian workforcenumberstoexceeditsUSAheadcount (StephenA.Stumpf,May-June2010).Salariesofthe
- 10. Indian workforce increased 15% or more annually from 2002 to 2007. But the attrition level also increased with an approximate increase of 15% to 30% every year (Stephen A. Stumpf, May-June 2010). (Stephen A. Stumpf, May-June 2010) opinioned that the high attrition levels and acculturation posed the biggest challenge to the growth of a company. It is considered that good HRM practices are moreimportantthaneverinthisindustrywithcurrencyfluctuationsetcintheglobaleconomyleadingto unprecedented uncertainties.Human resource practices have, evolved over the period of time due to globalization, changing needs and requirements, privatization/deregulation, competition. These external forces have exerted companies to implement newer HR practices for sustained and improved organizational and employee performance (Gurbuz, Nov 2009). Employee turnover is one of the biggest challenges of an organization. Therefore, retention of talented and skilled workforce becomes crucial because it creates a competitive advantage for the company. Labor force is regarded the most indispensable asset of an organization and retaining the manpower becomes imperative.Retention becomes even more crucial because acquiring new talent becomes veexpensive;hence retaining the old labor force becomes the smarter choice (Kiwook Kwon, 2010) (Jr., 2011). It has been researched that theemployeeturnoverorthe attritionrateis foundtobehighintheServiceandthe BPOorthe Business ProcessOutsourcingIndustry(Cho,June2010)(Chand,March2010). Ithasbeenobservedthatbecause of heavy industrialization and accelerated globalization, the working environment has become very stressful. Hence, employees fail to strike a work-life balance which results in increased turnoverabsenteeismandsickness(ThomasLange,Oct2010).
- 11. HR practices, IT industry and India India has 179 languages and 154 dialects, with an uneven distribution of literacyrate. Though rich in culture and natural resources, India continues to face multiplicity of problems including, political and religious instability; increasing population, unemployment and poverty; relatively low per-capita income; unmanageable public sector Regional differences, caste systems, socioeconomic status, and urban-rural. Globalization and liberalisation policies have enforced competition, fosteringmore creativityand innovation among Indian organizations. In order to manage its workforce, India mostly follows global best practices to implement HRM systems. There is a growing theoretical appreciation that HR practices are contextual and culture specific. Given the socioeconomic and cultural diversity of India, imitating global practices could be mired with challenges. Researchers have typically discussed Western-focused cross-country and cross- cultural HR applications and practices. However, there is serious dearth of such studies based on Indian HR perspectives. With a growth reaching USD 1 trillion, the IT industry in India is among the top job creators worldwide, with two-third of its operations and exports from North America, Western Europe, and Asia Pacific. With a whopping55percentshareofglobalmarket,theIndian ITservicessectorprovidesdirectemploymentto2.8 million people in India; moreover, with its presence in 52 countries with over 500 global delivery centres it employs over 600,000foreignnationals.Recruiting,retaining, and developinghumanintellectual talent with a global mindset is one of the key success factors for Indian offshore service provide as global HR management capabilities play a key role in effectively leveraging the intangible resources for successful performance of these firms. Multinational companies usually try to keep the balance between parent and subsidiary globally by also using standardized HR practices, In coping with the challenges coming from operating at the worldwide level, multinational Indian organizations instead have been more reactive than proactive in its approaches to HRM. Ignoring the HR function over decades has therefore built up pressure ontheindustry.
- 12. ObjectivesOfTheStudy Whilethereis considerableinterestinacademicresearchintheareaofiHRMorinnovativeHumanresource management and considerable need for the same suggested bythe ever changing external environment, the extent to which these practices have been adopted by the Indian IT industry have not been explored understoodanddocumented.Therefore,theobjectivesofthestudyaretounderstand: 1. The extent to which HR managers believe that innovation in HR practices are important for achieving goalsoftheorganization. 2.Themajorareasinwhichinnovationisrequired 3.TheextenttowhichIndiancompanieshavesucceededininculcatinginnovativeHRpractices 4.themajorinfluencesonthekindofHRMinnovationsadoptedbyIndianITorganization 5. The important outcomes of innovation in HR practices with reference to organizational commitment and performance OrganizationoftheChapters In an attempt to address the various objectives set bythis studya research was undertaken. The introduction to the back ground of the study and the objectives are discussed in Chapter 1. Chapter 2 goes in to the literature base for the study and the conceptual evolution of the research gap and need for the study. The methodology followed is discussed in detail in Chapter 3.The results and analysis is presented in Chapter 4. This is followed by a detailed discussion of the findings and the evolved recommendations. Chapter 5 discusses the various limitations faced by the study from the methodological and applicative perspective. It also discusses possible future directions. Finally Chapter 6 concludes the report. After presenting the references.
- 13. Chapter No – 2.
- 14. REVIEWOFLITERATURE 2.1 INTRODUCTION This research project will remain incomplete if various research studies conducted in the field of human resource management and human resource development are not taken into account. The Researcher has reviewed several Research Papers, Books and Theses to provide an insight into the academic endeavours related to HRD and their impact on organizational performance. This chapter reviews the past researches on similar or related topics and helps the researcher in providing a sound research foundation to understand the issues on which the study is focused. In the following pages, an attempt has been made to review some of theimportantstudiesconductedbyvariousResearchersinIndiaandeveninforeigncountries. 2.2Reviewofliterature- Anupama Gupta (2010) described the challenges faced by Human resource manager in context of new economic scenario. This paper emphasized that these challenges should seriously taken care of. Main challenge is the shortage of skilled manpower. This paper examined the role of human resource department to tackle the problem. It was the duty of HR department to design a possible career path to retain talent. It was suggested that HR manager should be readyto handle the challenges, but the role of other stakeholders shouldalsobeincludedinordertoensurehealthysurvivaloftheorganization. Saini R.R.(2010)inhis article―Humanresourcedevelopment inUCOBank-A case studyofChandigarh Region.‖ evaluates the Human Resources Development policies and practices. This study identified the process and problems in designing and implementingHuman Resources Development Systems. This study was analytical in nature and consist a sample of 100 respondents to analyze their opinion about HRD Policies and Practices.The Important findings ofthisstudywere,qualificationwas the mostimportant factor ofrecruitmentatalllevelofmanagersandemployees. Kundu. Subhash C., DivyaMalhan (2009) in their article on "HRM Practices in Insurance Companies: A Study of Indian and Multinational Companies" opined that Competitive advantage of a company can be generated from human resources (HR) and company performance is influenced by a set of effective HRM practices.Theresultsofthisstudyindicatedthatbothmultinationalcompaniesand Indiancompanieshaveto significantly improve their practices regarding performance appraisal, training and financial benefits, and hr planning and recruitment. Service sector is human resource intensive business. To gain competitive advantage, service organizations should emphasize on human resource management practices, as has been indicated in the results. A well-defined framework of human resource management practices benefits not onlytheorganizationbutalsotheemployee.HRpoliciesofanorganizationbenefittheemployee.
- 15. Tripathy(2008) observed that an organization can have competitive advantage by utilizing its human resources. This can be achieved through sound HRD Practices. According to him HRD include three C‘s- Competencies, commitment and culture. An optimum level of progressive climate is essential for facilitating HRD in an organization. It was resulted that good HRD Practices can influence financial and otherperformanceindicatorsintheorganization. Singh S.K (2008) in his research entitled ― HRD Climate: Interventions and challenges‖ examined that survival of the organizations in dynamic and complex environment require 60 employee involvement, productivity and this can be achieved with the help of quality targets, quality circles, training and development & suitable method of performance appraisal etc. Above these HRD interventions/practices should be implemented in a suitable way and HRD Climate should be conductive so that cooperation of employees can be achieved and conflicts can be sorted out which in turn increase the effectiveness of the organization. Patil, Kallinath S. (2007) in his studyopined that, the service sector plays a vital role in the development of the country. LIC has grown into a living saga. This transformation has not come about overnight. A breakthrough has been achieved on the strong foundation laid by the people of this great institution, which provided confidence and inner strength to explore new frontiers through the program of massive decentralization, development, expansion and diversification undertaken in recent years. The organization is today on the threshold of new vistas, striving and straining for reaching new heights and surging ahead in questofexcellence. Hemant Rao (2007) emphasized the changing role of HR. There was dramatic change in HR during past five years. This study shows the significant role of human resource managers in various areas like Empowerment of workers, Business process Reenergizing, Total Quality management, Humanization of work, and Quality of work life. It was the challenge of HRM to balance the impact of liberalization and globalization on productivity. Earlier the role of Personnel department was to give advice or support when asked but the changing professional employment scenario emphasized the role of HR professional while dealingwithemployeesofdifferentregions,caste,languageandsocialbackgrounds. Sharma and jyoti (2006) in an article on "job satisfaction" concluded that job satisfaction is an effective reaction to an individual's work situation, and has been described as a positive emotional response resulting from appraisal of one's job. One of the aspects that can lead to 61 Dissatisfaction is one's attitude towards one's job. job attitude can be defined as an overall feeling about one's job or career or in terms of specific facetofthejoborcareerandcanberelatedtospecificoutcomes,suchasproductivity.
- 16. Subramanian, V. (2005) expressing his views regarding recruitment and selection of employees stated that any organization which gives a fair share of attention to the recruitment and selection of its people is bound to get good returns. Recruitment and selection should be viewed in the wider context of the organizational future. What are the strategic objects and hence what capabilities will the enterprise need in the future? Must be the questions the organization should always address itself to. Therefore, an important strategic issue to considerishowtherecruitmentandselectionactivitycancontributetolongtermbusinessgoals. G.V.Chalam and L. Srinivas (2005) in this paper made an attempt to explore the basic gender disagreement with respect to HRD Climate in 20 branches of SBI at Andhra Pradesh. Findings of the study showed that women employees have much more concern on HRD climate than men. They come up with high level of satisfaction in respect of HRD Practices. Female Employees had higher degree of pleasure toward HRD Climate. It was also revealed that women respondents closely observed and followed the Human Resource development climate of the Bank and were also very loyal toward bank regarding their commitmenttowardwork.
- 17. Chapter No – 3.
- 18. 3. RESEARCH METHODOLOGY 3.1 Instrument Development And Measures Giventheobjectivesoftheresearch,instrumentwasdevelopedtomeasure 1) the importance of innovation in HRM practices Employee acquisition strategies(areas of iHRM evaluated included -Employee Retention strategies-Induction-Training and Development- Leadership Development-Career Planning-Performance appraisal-Compensation and incentives- Rewards and recognitions-Welfare measures-Organization Development-Knowledge Management-HR strategy-Employee exist and separation management-Corporate social responsibility) 2) the evaluation of the extend of innovation adopted in various HRM practices (areas of iHRM evaluated included -Employee Retention strategies-Induction-Training and Development- Leadership Development-Career Planning-Performance appraisal-Compensation and incentives- Rewards and recognitions-Welfare measures-Organization Development-Knowledge Management-HR strategy-Employee exist and separation management-Corporate socialresponsibility) 3) the major reasons for /influences on the kind of HRM innovations adopted (these reasons included -External environmental forces-Organizational Structural Characteristics-Organizational culture-History of success with past HRM innovations-Influence of consultants-Top management insistence-To remain competitive in the industry-Quest for continuous improvement in HR M-To reduce costs of HRM Services-To increase services of HRM department-To increase impact of HRMdepartment-Toprovidemoresatisfyingworkexperiencetotheemployeeand 4) the impact of iHRM on organizational commitment and organizational effectiveness. This was measures using a pre-validated scale which tried to evaluate the degree to which the employees were likely to continue with the organization under different circumstances. It checked the Employees willingness to change companies if the new job offered 25% pay increase, More creative freedom, More status or Opportunity to work with friendlier people Pre-validated Scales werenotavailableforthefirst threesetsofvariablesorwerefoundnotsuitableintheIndiancontext. Therefore, except for Organizational commitment, all the items for the instrument were adapted
- 19. from the various previous studies according to their relevance in the Indian context and while ensuringthattheitemswereasdomainrelevantaspossible. 3.2 Objectives of study – 1. The extent to which HR managers believe that innovation in HR practices are important for achieving goalsoftheorganization. 2.Themajorareasinwhichinnovationisrequired 3.TheextenttowhichIndiancompanieshavesucceededininculcatinginnovativeHRpractices 4.themajorinfluencesonthekindofHRMinnovationsadoptedbyIndianITorganization 5. The important outcomes of innovation in HR practices with reference to organizational commitment and performance 3.3 Significance of study – • To find out appropriate candidate for right job this study gives us basics for searching any candidate. • This study helps in becoming more efficient in performing day to day recruitment operations. • This study is more important because it represents the culture of one efficient recruitment firm. 3.4 Scope of study- The scope of HRM is very wide: 1. Personnel aspect-This is concerned with manpower planning, selection, placement, transfer, promotion layoff and retrenchment, remuneration, incentives, productivity etc. 2. Welfare aspect-It deals with working conditions and amenities such as canteens, rest and lunch rooms, assistance, and safety, recreation facilities, etc. 3. Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.
- 20. Data collection: - 4. Primary Data: - For collecting primary data, I used questionnaire technique to get appropriate response from each respondent. I made questionnaire and distributed it among the newly recruited office staff for getting their opinion about asked questions by providing three to four options for each question. 5. Secondary Data: - 6. For increasing data collection, I have also used secondary data sources such as books, websites, articles, blocks etc. from these sources secondary data is collected for making project report more efficient.