Human Resource Challenges and Practices in IT Industry

Proceedings of the 5th provinceal company INDIACom-2011 Computing For Nation Development, March 10 11, 2011 Bharati Vidyapeeth? s form of Computer Applications and attention, newfangled Delhi gentle vision Challenges &038 Practices in IT Industry Rakesh S. Patil1, Varsha Patil2 and Pratibha Waje 3 1 Head and 3Lecturer 1,3 Sir Visvesvaraya Institute of Technology, Chincholi (Sinner) Nashik-422 101 (MS) 2 SNG Institute of Management &038 Technology, Rajgurunagar, Pune (MS) 1 email& one hundred sixtyprotected com and email&160protected om ABSTRACT The motivation of validations for hatful and race for arrangements leave be more(prenominal) than difficult to satisfy in the todays competitory vocation environment. Organizations competitive advantage could be generated from hu objet dart resources (HR) and organization performance is influenced by a set of nucleusive HRM practices. Softw ar is a wealth and job creating sedulousness, which has in just a few years, large to US $ 1 trillion, employing millions of lords worldwide. The Indian fleecywargon industry has burgeoned, showing a nearly 50% compounded annual growth rate all over the recent years.Being a association-based industry, a amply intellectual capital lends competitive advantage to a firm. With a global explosion in market-opportunities in the IT sector, the shortage of manpower both in numbers and skills is a set challenge for HR professionals. The related issues argon varied indeed enlisting of world-class workforce and their retention, compensation and c atomic number 18er planning, technological obsolescence and employee turnover. This paper explains the HR challenges and practices in software package Industries. KEYWORDS HRM, IT,HR strategy, Services 1. INTRODUCTION The economy has transitioned to what some birdcall The Age of Information? an economy in which gross domestic point of intersection is increasingly dominated by services. Services permeate e precise spirit o f our lives. We use transportation services restaurant services hotels electricity and telephones postal, messenger and maintenance services services of hairdressers services of public relations and advertizement firms lawyers physicians dentists stockbrokers and insurance agents movie theatres and swimming pools . When we do buy goods, such as new car or a washing machine, we often tranquillise rely on services to keep them running and repair them when they come upon down.Services al funky us to budget our time as well as our money. The twentieth century was the age of machine the twenty-first century leave be the age of people Buzzwords like globalization, empowerment, cross functional teams, downsizing, erudition organizations and knowledge workers are changing the way of life of lotrs and the way they have it away people. 2. STRATEGIES &038 POLICIES OF SOFTWARE INDUSTRIES 1. Motivation &038 Retention of Employees Retention and motivation of strength are major HR concern s today.People a Gartner group company specializing in centering of human capital in IT organizations has observed that the average tenure for an IT professional is less than three years. Further, the use of new technologies, the support of l acquiting and training, and a challenging environment ranked elevateder(prenominal) than competitive counterbalance structures as effective retention practices. Our own recent survey of 1028 software professionals from 14 Indian software companies, showed that while the professional gave importance to ad hominem and ethnic job- assemble, HR managers believed that the key to retention was salary and public life satisfaction.Money was a strand motivator for starters, but for those into their third or fourth jobs, their value-addition to the organization was more important. Monetarily, offering the best salaries in industry is the minimum every company is doing, unconnected from performancebased bonuses, long-service awards, and stock opti ons. Many organizations frequently conduct employee satisfaction and organization humor surveys, and are setting up Manpower Allocation Cells (MAC) to assign the good project to the right field person.In fact, some are even helping employees with their personal and domestic responsibilities to satisfy &038 motivate their workforce 2. Best Talent coaxer In a tight job market, many organizations often watch precipitous and simultaneous demands for the same kinds of professionals. In their quest for manpower, they are cajoling natural endowment around the world. In such a sellers market, software companies are mental strain to understand which organisational, job, and reward factors contribute to attracting the best endowment fund one having the right blend of technical and person-bound skills.This would mean a knowledge of the tools of the trade combined with preparation and communication skills, capacity for analytical and logical thinking, leadership and team micturateing , creativity and innovation. The Indian software industry suffers from a shortage of experienced people such as systems analysts and project managers, and attracting them is a key HR challenge. 3. fee and Reward Increasing demands of technology coupled with a short add up of professionals (with the requisite expertise) has growthd the costs of delivering the technology.This makes incentive compensation a portentous feature, with the result that software repeat Right INDIACom-2011 ISSN 0973-7529 ISBN 978-93-80544-00-7 Proceedings of the 5th theme Conference INDIACom-2011 companies need moved from conventional pay-for-time methods to a combination of pay-for-knowledge and pay-forperformance plans. With the determinants of pay being profit, performance and value-addition, emphasis is now on profit communion (employee stock option plans) or performance-based pay, keeping in view the long organizational objectives quite a than short-term production-based bonuses.Skills, compet encies, and commitment supercede loyalty, hard work and continuance of service. This pressurizes HR teams to devise optimized compensation packages, although compensation is not the motivator in this industry. 4. Increasing loyalty and commitment As with any other professional, what unfeignedly matters to software professionals is selecting the best place to work with, which is what every company is strain to be. The global nature of this industry, and the project-environment has added new cultural dimensions to these firms.In a value-driven culture, values are determined and shared through bulge the organization. Typically, areas in which values are evince are performance, competence, competitiveness, innovation, teamwork, eccentric, customer service, and care and consideration for people. Flat structure, open and knowledgeable culture, authority based on expertise and ability rather than position, and flexi-timings are some of the norms software firms follow. The idea is to make the work place a fun place with the hope of increasing loyalty and commitment. 5.The Demand Supply go a evolvest Shortage of IT professionals is global in nature and not peculiar to the Indian software industry alone. W. Strigel, founder of Software Productivity Centre Inc. (1999) has intercommunicate the shortage of software professionals to be one million by 2006. In fact, a survey reports that 75 per cent of US companies planned to reengineer their applications victimization newer technologies, but found that 72 per cent of their existing staff lacked the skills undeniable in these technologies, and 14 per cent were not even retrainable. Graph no 1.Annual demand for IT Professionals For India, it is predicted that in the year 2004 itself, the IT sector will learn 1,95,000 professionals. This turn out will continue, and in the year 2010 almost 3,70,000 IT professionals will be infallible (Strategic Review Reports, NASSCOM 19962001). Consequently, recruitment managers are exploring new sources of IT manpower from non-IT professional sectors, as well fresh, trainable science graduates. 6. Integrating HR strategy with chore Strategy The strategical HR role focuses on aligning HR practices with backup strategy.The HR professional is expected to be a strategic fellow contributing to the success of tune plans, which to a great extent play on HR policies pertaining to recruitment, retention, motivation, and reward. The other major areas of concern for HR personnel in this context are, care of revision, matching resources to future pedigree requirements, organizational effectiveness, and employee phylogeny. 7. Encouraging Quality and Customer focus Today? s corporate culture needs to actively support quality and customer orientation.With globalization and rapid technological change, quality is of utmost importance for the Indian companies, which earn most of their revenues through exports. Hence, the HR professional as a strategic partner need s to encourage a culture of superior quality to check over customer satisfaction, the only real measure of quality of a product or service. To be competitive today, an organization needs to be customer responsive. Responsiveness includes innovation, quick decision-making, leading an industry in cost or value, and effectively linking with suppliers and vendors to build a value chain for customers.Employee attitudes correlate highly with customer attitude. The shift to a customer focus redirects charge from the firm to the value chain in which it is embedded. HR practices within a firm should consequently be extended to suppliers and customers outside the firm. 8. Value admission training for up-gradation of Skills Rapid and unpredictable technological changes, and the increased emphasis on quality of services are compelling software businesses to recruit filmable and competent employees.Software professionals themselves expect their employers provide them with all the training they whitethorn need in order to perform not only in their underway projects, but also in related ones that they may subsequently stamp down within the organization. As observed by Watts Humphrey, Fellow of the Carnegie Mellon University, as software professionals gain competence, they do not necessarily gain motivation. This is because a imaginative engineer or scientist who has learned how to accomplish something has little interest in doing it again.Once they have satisfied their curiosity, they may abruptly lose interest and hear an immediate change. And when the rate of technological change is high may be higher than the time required to acquire competence in one area professionals could undergo psychological turbulence owing to the need to work in a new technology throughout their career. They indirect request to gain new knowledge, which will be utilized by their organization. On the basis of the new learning they want to work in higher segments of software value chain. Therefore, constant up-Copy Right INDIACom-2011 ISSN 0973-7529 ISBN 978-93-80544-00-7 piece Resource Challenges &038 Practices in IT Industry gradation of employee skills poses yet another challenge for HR personnel. 3. CHALLENGES FOR IT persistence The main challenges to the IT Industry are i. enlisting planning ii. Performance management iii. Training and development iv. Compensation management v. HRM as whole 1. Recruitment Planning Recruitment planning is most important component in new people management with special reference to IT industry.We have to enshroud with human assets so it becomes important and have good quality of people in the organization. We have to take the recruitment planning in very serious manner to ensure that we lavatory get best talent in the organization. 2. Performance management instantly the challenges how to manage the performance of your employees. You have to get right person in a organization to manage your business. The challenge should be to create a performance culture where you can provide opportunities for enhance performance, where optimum performance becomes a way life. 3.Training and development This is another challenging area in IT industry. We have to chalk out a suitable strategy for training &038 development so that employees are well equipped to handle the challenges in advance. 4. Compensation management The IT industry is one of the high paying industries. This is very competitive industry, we have to attract best talent, offer best possible compensation package to the employees. Now IT companies are having ESOP with the compensation package. But the really challenge should be how we are able to incorporate all the subsystems in HR.Ultimately this would help the organization for achieving exceptional performance. People have to be groomed to get in with the performance culture. We have to create an environment that stimulates the creation of knowledge, its sustenance will be the challenge for IT compani es in the future. HR department cannot function with conventional systems. Now the role will shift to HR facilitator, to facilitate change process. HR facilitator will have to involve the whole organization in this process and act as a guide, coach, counselor and facilitator.Any organization in the IT industry will have to face these challenges like Infosys, Satyam, Pentafour, DSQ Software, Micro soft India, Intel India. These IT companies are leaders in their own stride. They have excellent recruitment policies, huge data bank, and placement agencies. They are also having rigorous tests to ensure that they can get high profile talent that will fit in their culture. They have best performance system that evaluates the organization as whole. They have been able to tackle the quantum of performance with fairly efficient manner.The skin rash tasks for these IT companies are to build corporate culture. They are diverting all the efforts to build performance driven culture. The major i ssue for these companies to get right man for right job. We have to find person with the required skills, experiences, mindsets, and also he must be suitable for these organizations. 5. Attrition and Retention IT companies are having high degree of attrition. The challenges for these companies are to keep this attrition rate as low as possible. Various companies adopt different techniques to retain their employees like high pay packets, ESOP, other benefits.So we have to keep this attrition rate as low as possible to retain super achievers. CONCLUSION With the sexual climax of a work situation where more and more companies are having to let that their valued employees are leaving them, a new concept of career and human resource management is bound to emerge. The focus of this new epitome should not only be to attract, motivate and retain key knowledge workers, but also on how to reinvent careers when the loyalty of the employees is to their brain ware rather than to the organizati on.With lifetime employment in one company not on the agenda of most employees, jobs will become short term. Todays hightech employees desire a continuous up-gradation of skills, and want work to be exciting and entertaining a trend that requires designing work systems that fulfill such expectations. As employees gain greater expertise and control over their careers, they would reinvest their gain back into their work. HR practitioners must also play a proactive role in software industry. As business partners, they need to be aware of business strategies, and the opportunities and threats facing the organization.As strategists, HR professionals require to achieve integration and fit to an organizations business strategy. As interventionists, they need to adopt an allembracing approach to understanding organizational issues, and their effect on people. Finally, as innovators, they should introduce new processes and procedures, which they believe will increase organizational effective ness REFERENCES 1. Noe, R. A. , Hollenbeck, J. R. , Gerhart, B. and Patrick, P. M. (2007) Human Resource Management Gaining aCompetitive Advantage, Tata McGraw-Hill, New Delhi. 2. Prasad, K. (2005) Strategic Human Resource Management Text and Cases, Macmillan India Ltd. , New Delhi. 3. Kandula,Srinivas R. (2003) Human Resource Management in practice with 300 models Techniques and Tools, Sage, Delhi 4. Rao T. V. , Rao Raju, and Yadav Tara. (2001). A lead of HRD concepts, structure of HRD Copy Right INDIACom-2011 ISSN 0973-7529 ISBN 978-93-80544-00-7 Proceedings of the 5th National Conference INDIACom-2011 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. epartments, and HRD practices in India, Vikalpa, ol 261, No. 1, Jan. -Mar Page 49-62. Siekel Tom. (2002). After CRM, its ERM Employee Relationship Management Indian Management, Vol. 41, Issue 9, July p. 38 Storey J. (ed. ) (1989). New Perspectives in Human Resource Management, Routledge, London, p. 114. Truss Catherine. (2001). Shifting the paradigm in Human Resource Management From the resource based view to thickening adaptive system. Published in a Research theme on Human Resource Management by Kingston Business School, Kingston University Thite, M. 2004) Managing People in the New Economy Targeted HR Practices that deflect People to Unlock their Knowledge Power, Response Books, New Delhi. Truss, C. (2001) Complexities and Controversies in Linking HRM with Organizational Outcomes Journal of Management Studies, Vol. 38, No. 8. Walker, J. W. and Stopper, W. G. (2000) Developing Human Resource Leaders Human Resource Planning, Vol. 23, No. 1, p. 38-44. Webb, J. (2004) Putting Management hazard into Performance A Handbook for Managers and Supervisors, Allen &038 Unwin, Australia.Joynt, P. and Morton, B. (2005) The Global HR Manager Creating the unseamed Organization, Jaico Publishing House, Mumbai. Jyothi, P. and Venkatesh, D. N. (2006) Human Resource Management, Oxford University Press, New Delhi. Kandola, R. and Fu llerton, J. (1994) Managing the Mosaic Diversity in Action, IPD, London. Kandula, S. R. (2004), Human Resource Management in Practice With 300 Models, Techniques and Tools, Prentice Hall of India Private Limited, New Delhi. Copy Right INDIACom-2011 ISSN 0973-7529 ISBN 978-93-80544-00-7