human resource development practices in information technology

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177 CHAPTER VII HUMAN RESOURCE DEVELOPMENT PRACTICES IN INFORMATION TECHNOLOGY INDUSTRY IN INDIA In highly skilled intensive and knowledge intensive industries like information technology industry, human resource plays a vital role. This industry is highly competitive, dynamic and technical industry, whose growth and development depends upon its human resource much more strongly than other resources. This industry needs highly skilled, talented and well-learned human resource. The quality of products and services both depend upon the quality of human resource, which needs continuous and multiple-skill training. Thus, to attain such human resource, there must be emphasis on developing and nurturing a strategy-based on human resource development practices in the information technology organisations. Human resource development comprises of many components like selection procedures, training policy, performance and promotion policy, transfer policy, wages, compensation, social-security policy, worker's welfare policy, recreational policy, employee- employee/employer/management relations, trade union, health policy, etc. All these components help to develop highly skilled, efficient, effective and dynamic human resource in these organisations. For the success of information technology organisations, it is necessary that right person must be placed at right job and his potential must be enhanced through multiple and continuous training. Thus, this sector must give more emphasis on the development of human resources by prevailing upon different aspects of human resource development practices in their organisations. All the components of human resource development practices must be integrated with the human resource policy of the organisation. The success of IT/ITES, sector is basically due to skilled, efficient and energetic human resource in Indian information technology sector. In India, the other reason for the growth of information technology industry is the availability of English language

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Page 1: Human Resource Development Practices in Information Technology

177

CHAPTER – VII

HUMAN RESOURCE DEVELOPMENT PRACTICES IN

INFORMATION TECHNOLOGY INDUSTRY IN INDIA

In highly skilled intensive and knowledge intensive industries like information

technology industry, human resource plays a vital role. This industry is highly

competitive, dynamic and technical industry, whose growth and development depends

upon its human resource much more strongly than other resources. This industry needs

highly skilled, talented and well-learned human resource. The quality of products and

services both depend upon the quality of human resource, which needs continuous and

multiple-skill training. Thus, to attain such human resource, there must be emphasis on

developing and nurturing a strategy-based on human resource development practices in

the information technology organisations. Human resource development comprises of

many components like – selection procedures, training policy, performance and

promotion policy, transfer policy, wages, compensation, social-security policy, worker's

welfare policy, recreational policy, employee- employee/employer/management relations,

trade union, health policy, etc. All these components help to develop highly skilled,

efficient, effective and dynamic human resource in these organisations. For the success of

information technology organisations, it is necessary that right person must be placed at

right job and his potential must be enhanced through multiple and continuous training.

Thus, this sector must give more emphasis on the development of human resources by

prevailing upon different aspects of human resource development practices in their

organisations. All the components of human resource development practices must be

integrated with the human resource policy of the organisation.

The success of IT/ITES, sector is basically due to skilled, efficient and energetic

human resource in Indian information technology sector. In India, the other reason for the

growth of information technology industry is the availability of English language

Page 2: Human Resource Development Practices in Information Technology

178

proficient labour class. The present study attempts to explore the practices of human

resource development in various information technology organisations. The employees of

information technology organisations covered in this study are – Tata Consultancy

Services (TCS), Wipro Technologies, Infosys Technologies Ltd., Hindustan Computer

Ltd. (HCL), Dell International, Birlasoft, Pyramid Consulting Inc., Quack Inc., Semi-

Conductor Laboratory (SCL Ltd), Alcatel-Lucent Technologies, Attra, Kanbay

International Inc. and Omnia Technologies from Delhi, Bangalore, Pune, Chandigarh,

Mohali respectively. Through detail questionnaire the implementation of human resource

development practices in information technology organisations, have been estimated. An

effort has also been made to measure the human resource development climate in

information technology organisations. The sample-size of five hundred employees has

been taken in this study.

The questionnaire has been divided into three parts. Part (a) includes detailed

information of personal and demographic data of the employees, about age, sex,

educational qualification, nature of job, marital status, background, work-experience,

monthly income and nature of appointment of employees in information technology

industry. Part (b) includes various aspects of human resource development – selection,

training, performance and promotion, transfer, wages and compensation, relation among

employees, health and welfare policies, which are practiced in information technology

industry.

Page 3: Human Resource Development Practices in Information Technology

179

Table 7.1

Age of Employees

Age of Employee <20yrs 20-30yrs 30-40yrs >40yrs Total

No. of Employees 10 359 130 1 500

Percentage 2 71.8 26 0.2 100

Source: Primary Survey

H0: No. of employees in various age groups are equal

H1: No. of employees in various age groups are not equal

Chi-square (χ2

Test) (Calculated value) = 667.056

(χ2

α) (Tabulated value)=11.3449

d.f. = 3

χ2

is significant at 1% level

Table 7.2

Sex of Employees

Sex Male Female Total

No. of Employees 391 109 500

Percentage 78.2 21.8 100

Source: Primary Survey

H0: No. of employees of different sex groups are equal

H1: No. of employees of different sex groups are not equal

Chi-square ( χ2

Test) (Calculated value) = 159.048

(χ2

α) (Tabulated value)=6.63490

d.f. = 1

χ2

is significant at 1% level

Page 4: Human Resource Development Practices in Information Technology

180

(a) General Characteristics of Employees in Information Technology

Industry:

Followings are the general characteristics of employees, covered in the survey.

1. Age of Employees: India is a nation of youth and majority of Indians belong to

this group. In India there are nearly above fifty nine percent people in the age group of

15-60 years. They are also known as working population. Higher proportion of working

young population is a good indicator for the growth of Indian economy. Young

population, have good or excellent stamina to do work efficiently and effectively and

they are also dynamic by nature who change, as the nature of the organisation changes.

Table 7.1 depicts that in Indian information technology industry, near about 71.8

percent employees are in the age group of 20-30 years, whereas 26 percent employees are

in the age group of 30-40 years. It means that in Indian information technology industry,

majority of employees are that is 97.8 percent are in the age group of 20-40 years. Data

from the above table reveals that, just two percent employees are even less than the age

of twenty years and point two percent employees are of more than forty years. In our

survey (χ2

Test= 667.056) > (χ2

α=11.3449) means calculated value is greater than tabulated

value, so null hypothesis is rejected and it is significant at 1% level. It shows that the

number of employees in various age groups is not equal.

2. Sex of Employees: In information technology industry, there is majority of male

employees as compared to female employees. It means that there is a wide gender gap

between male and female employees.

Table 7.2 reveals that near about 78.2 percent male employees are employed in

information technology industry, whereas just 21.8 percent female employees are

employed in this industry, which is much lower as compared to male employees.

Participation of female employees is lower as compared to male employees in this

industry in India, due to economic factors as well as other factors like cultural, social and

ideological factors, or they also play a vital role in the determination of participation of

female employees in information technology industry. Another reason may be that in

information technology industry especially in BPO-ITES, there are night shifts because

of 365x24x7 services of the organisations. Long-working hours are also, another

hindrance, for the low participation of female employees. Survey shows that (χ2

Test =

Page 5: Human Resource Development Practices in Information Technology

181

159.048) > (χ2

α=6.63490), the H1 is accepted and Chi-square is significant at 1%

level. It means the number of employees of different sex groups is not equal. There is low

participation of female employees as compared to male employees in information

technology organisations.

3. Educational Qualification of Employees: Education, training and skill

acquisition is one of the key features of employees in the information technology

industry. The information technology industry being a knowledge-based industry, entry

to the labour market in this sector is restricted to the employable people with at least

minimum level of education in general or technical education.

In this survey, employees have been categorized into two categories of education

that is general and technical education. In information technology industry most of

employees are technically qualified people. Out of five hundred sample-sizes of

employees, ninety five employees are with general qualification, whereas 405 employees

are with technical qualification. General education includes arts, commerce and science

faculty with B.A., M.A., B.Com, M.Com, B.Sc., M.Sc., etc., whereas technical education

includes B.C.A, M.C.A, B-tech, M-tech, M.B.A, PGDCA, M.Sc. (IT) etc. In general

education 51.58 percent, 46.32 percent and 2.11 percent employees are graduate, post-

graduate and under-graduate, whereas in technical education 36.30 percent employees are

MCA, 24.69 percent are BCA, 21.98 percent are B-Tech, 9.38 percent are M-tech, 7.16

percent are MBA and point forty nine percent are of other qualification like Diploma in

Computer Science or P.G. Diploma in Computer Applications etc. It proves that in

information technology industry most of the employees are technically skilled

employees.

General education depicts, (χ2

Test = 41.66) > (χ2

α =9.21034), so null hypothesis is

rejected and alternative hypothesis is accepted. It means employees with different general

education are not equal. This test is significant at 1% level. Again in technical education

(χ2

Test= 212.99) > (χ2

α =15.0863), which means number of employees having different

technical education are not equal. Alternative hypothesis is accepted and it is significant

at 1% level.

Page 6: Human Resource Development Practices in Information Technology

182

Table 7.3

General Educational Qualification

Edul. Qualification (General) U.G. Graduates P.G. Total

No. of Employees 2 49 44 95

Percentage 2.11 51.58 46.32 100

Source: Primary Survey

H0: No. of employees having different general education are equal

H1 : No. of employees having different general education are not equal

Chi-square ( χ2

Test) (Calculated value) = 41.66

( χ2

α) (Tabulated value)=9.21034

d.f. = 2

χ2

is significant at 1% level

Table 7.4

Technical Educational Qualification

Edul. Qualification

(Technical)

BCA MCA B-TECH M-TECH MBA Other Total

No. of employees 100 147 89 38 29 2 405

Percentage 24.69 36.30 21.98 9.38 7.16 0.49 100

Source: Primary Survey

H0: No. of employees having different technical education are equal

H1: No. of employees having different technical education are not equal

Chi-square (χ2

Test) (Calculated value χ2) = 212.99

(χ2

α) (Tabulated value)=15.0863

d.f. = 5

χ2

is significant at 1% level

Page 7: Human Resource Development Practices in Information Technology

183

Table 7.5

Background of Employees

Background Rural Urban Total

No. of employees 74 426 500

Percentage 14.8 85.2 100

Source: Primary Survey

H0: No. of employees of different background are equal

H1: No. of employees of different background are not equal

Chi-square ( χ2

Test) (Calculated value) = 247.808

(χ2

α) (Tabulated value)=6.63490

d.f. = 1

χ2

is significant at 1% level

Table 7.6

Marital Status of Employees

Source: Primary Survey

H0: No. of employees of having different marital status is equal

H1: No. of employees of having different marital status is not equal

Chi-square ( χ2

Test) (Calculated value) = 20.808

(χ2 α) (Tabulated value)=6.63490

d.f. = 1

χ2

is significant at 1% level

Marital Status Married Unmarried Total

No. of employees 199 301 500

Percentage 39.8 60.2 100

Page 8: Human Resource Development Practices in Information Technology

184

4. Background of Employees: Most of information technology organisations are

located in metro cities, like National Capital Region (Delhi), Mumbai, Bangalore etc. It

is because of availability of good infrastructure as well as skilled employees in these

areas.

Table 7.5 shows that most of the employees engaged in information technology

industry are having urban background. A majority of employees that is 85.2 percent are

of urban background and on the other hand just 14.8 percent employees are of rural

background. In background of employees again (χ2

Test = 247.808) > (χ2

α =6.63490), so it

is significant at 1% level. H1 is accepted which means the number of employees from

different background that is from urban and rural areas, are not equal. There are majority

of urban background employees.

5. Marital Status of Employees: Marriage is an important custom of Indian society.

In traditional Indian society, people used to get married at early age but now the trend has

been changed. Now, people don’t believe in early age marriage. They are career

conscious now. With the spread of education particularly among females, the trend of

early marriage is declining and the same is reflected in our study findings.

Table 7.6 shows that just 39.8 percent employees are married and 60.2 percent

employees are unmarried. It means, a majority of employees are unmarried. In marital

status, (χ2

Test = 20.808) > (χ2

α=6.63490), so it is significant at 1% level. H0 is rejected and

H1 is accepted. It means that the numbers of employees having different marital status are

not equal.

6. Nature of Job of Employees: In any type of organisations, there is need for

various employees having different skills. Nature of job can be classified as follows –

technical, non-technical, managerial and others like administrators, allied services

providers including – clerks, peons, secretaries, P.A. and maintenances staff etc. In our

study, we have even included the security staff because they are an integral part of the

Page 9: Human Resource Development Practices in Information Technology

185

organisations. They are good observers as well as good informers. They also play a vital

role in the security of the organisations through collecting the information and

identification of the visitors. Even some time in large scale organisations visitors are also

checked by security staff.

Table 7.7 reveals that majority of employees are engaged in technical department

that is near about 74.8 percent, whereas, in non-technical, managerial and other

department, 19 percent, 5.8 percent and 0.4 percent employees are engaged. Information

technology industry is a technical industry and hence needs more technical employees as

compared to others. Here, (χ2

Test = 697.968) > (χ2

α = 11.3449), so H1 is accepted which

means number of employees in different nature of job are not equal. It is significant at

1% level.

7. Work Experience of Employees: In information technology industry, a majority

of young employees are employed. Many employees have just completed their graduation

and post graduation at early age and also get job early. In BPOs most of employees have

just completed their +2 or graduation at the age of 19-20 years.

Table 7.8 shows, that there is no employee having more experience than thirty

years. On the other hand, a large number of employees that is 61.6 percent are having

experience less than five years, 30.4 percent of employees are having experience between

five to ten years and 7.6 percent of employees are having experience ten to twenty years.

Out of five hundred employees just two employees have experience between twenty to

thirty years. Our survey reveals that near about 92.0 percent employees having

experience between one to ten years. There may be senior employees are having

experience more than 30 years but they did not participate in this survey. Some of them

directly refused to take participation in our survey. Data reveals that, (χ2

Test = 694.16) >

(χ2

α = 13.2767) so, alternative hypothesis is accepted, whereas null hypothesis is rejected.

It shows that number of employees in various work experience categories is different

from each other. This test is significant at 1% level.

Page 10: Human Resource Development Practices in Information Technology

186

Table 7.7

Nature of Job of Employees

Nature of job Technical Non-technical Managerial Others Total

No. of Employees 374 95 29 2 500

Percentage 74.8 19 5.8 0.4 100

Source: Primary Survey

H0: No. of employees in different nature of jobs are equal

H1: No. of employees in different nature of jobs are not equal

Chi-square (χ2

Test ) (Calculated value) = 697.968

( χ2

α) (Tabulated value) = 11.3449

d.f. = 3

χ2

is significant at 1% level

Table 7.8

Work Experience of Employees

Work Exp. <5 yrs 5-10yrs 10-20yrs 20-30yrs >30yrs Total

No. of employees 308 152 38 2 - 500

Percentage 61.6 30.4 7.6 0.4 - 100

Source: Primary Survey

H0: No. of employees having different experienced are equal

H1: No. of employees having different experienced are not equal

Chi-square (χ2

Test) (Calculated value) = 694.16

(χ2

α ) (Tabulated value) = 13.2767

d. f. = 4

χ2

is significant at 1% level

Page 11: Human Resource Development Practices in Information Technology

187

Table 7.9

Monthly Income of Employees

Monthly Income Not disclosed

(Rs.000’s)

<20

(Rs.000’s)

20-30

(Rs. 000’s)

30-40

(Rs. 000’s)

>40

(Rs. 000’s)

Total

No. of Employees 266 43 64 76 51 500

Percentage 53.2 8.6 12.8 15.2 10.2 100

Source: Primary Survey

H0 : No. of employees having different monthly income are equal

H1 : No. of employees having different monthly income are not equal

Chi-square (χ2

Test) (Calculated value) = 350.78

(χ2

α ) (Tabulated value) = 13.2767

d.f. = 4

χ2

is significant at 1% level

Table 7.10

Nature of Appointment

Nature of Appointment No. of Employees Percentage

Trainee 30 6

Trainee & likely to be permanent 91 18.2

Permanent 335 67

Purely temporary 44 8.8

Total 500 100

Source: Primary Survey

H0: No. of employees having different nature of appointment are equal

H1: No. of employees having different nature of appointment are not equal

Chi-square (χ2

Test) (Calculated value) = 486.68

(χ2

α ) (Tabulated value) = 11.3449

d.f. = 3

χ2

is significant at 1% level

Page 12: Human Resource Development Practices in Information Technology

188

8. Monthly Income of Employees: Salary in the software industry is one of the

most flexible feature and at the same time one of the most closely guarded secret in the

industry. There are no fixed norms regarding the wage payment made to the employees.

Information technology industry provides one of the highest salary levels in comparison

to any other sector for same level of skills. The salary level in this sector has ushered in a

new class of young urban upwardly mobile group of information technology employees.

The high rates of salary in the industry are attracting workers from other sectors.

Table 7.9 depicts, that the large number of employees did not disclose their

monthly salaries. It means 53.2 percent of employees did not give any idea regarding

their monthly salaries. The 15.2 percent of employees are getting salary between the

ranges of Rs. 30-40 thousand per month. Approximately 12.8 percent and 10.2 per cent of

employees are getting their monthly salaries between the range of Rs. 20-30 thousand and

more than Rs. 40 thousand per month. Near about 8.6 percent employees are getting their

salaries less than Rs. 20 thousand per month. It shows that (χ2

Test = 350.78) > (χ2

α =

13.2767), so null hypothesis is rejected and alternative hypothesis is accepted. All

employees in information technology organisations, having different monthly income and

chi-square are significant at 1% level.

9. Nature of Appointment: Information technology sector in India is well organized

sector which includes – public sector, private sector and MNCs. Though information

technology industry is primarily in private sector, the nature of appointment in

information technology sector is similar to that in the public sector. Some of employees

are permanent, trainees, trainee and likely to be permanent and purely temporary. In

information technology industry most of the employees are permanent because this

industry spends a lot of resources and time on its employees by providing training and

development. It is in the interest of organisations to have permanent employees.

Table 7.10 reveals, that 67 percent of employees are permanent and 18.2

percent are trainees and likely to be permanent. The 8.8 percent employees are purely

temporary and 6 percent employees are just trainees. It means that 85.2 percent

employees are permanent in the nature of appointment. Here, (χ2

Test = 486.68) > (χ2

α =

11.3449), so alternative hypothesis is accepted. It means numbers of employees having

Page 13: Human Resource Development Practices in Information Technology

189

different nature of appointment are not equal. Most of them are permanent. Hence, chi-

square is significant at 1% level.

Human Resource Development Practices in Information Technology

Industry:

During 1990s, the development of human resource practices has played a

significant role in the performance of organisations. There has been a paradigm shift in

the attitude of organisations towards human resource function. So, various organisations

are embarking on the development of human resource. Human resource development

practices depend upon human resource development culture and human resource

development learning processes. Human resource development culture can be developed

by providing multiple-training, promotion and welfare facilities to employees. It helps in

fulfilling the satisfaction of the employees. The learning process includes communication

and human resource development values. Communication may be upward, downward

and lateral but it must be effective. Human resource development values include

autonomy, collaboration, trust and openness among employees. By this type of human

resource development practices, an organisation may get higher level of competent

employees and better utilization of human resources in the form of outcome (Fig. 7.1).

The present study attempts to explore employee’s perception of the adequate and

effective implementation of human resource development practices in the information

technology organisations. In these organisations various human resource development

systems like effective selection procedure, multiple-training, performance and promotion

policy, employee’s welfare, transfer policy etc., have been implemented for

organisational growth and development. In order to evaluate the effectiveness of human

resource development practices in the sample survey of information technology

organisations - the level of satisfaction of employees has been estimated.

Page 14: Human Resource Development Practices in Information Technology

190

Fig. 7.1

HRD Practices

HRD Culture HRD Learning Processes

Multiple Promotions Welfare of

Training Employees Communication HRD Values

Upward Downward Lateral Openness Collaboration Trust Autonomy Communication Communication Communication

HRD Outcomes

Employee’s Competence Better Utilization of

Human Resource

Page 15: Human Resource Development Practices in Information Technology

191

Table 7.11

Criteria of Selection

Multiple Choices No. of Employees Percentage

Through open interview/test 353 70.6

Through placement agencies 48 9.6

Through campus interview 68 13.6

Through contacts 30 6

If any other, specify, 1 0.2

Total 500 100

Source: Primary Survey

Table 7.12

Fairness of Selection Procedure

Choices No. of Employees Percentage

Totally Fair 297 40.6

Generally Fair 203 59.4

Not Fair - -

Total 500 100

Source: Primary Survey

Page 16: Human Resource Development Practices in Information Technology

192

1) Selection Procedure: In human resource development, emphasis must be placed

on selection procedure because it is the process through which an organisation makes the

balance between job’s requirement and candidate’s qualification. The selection of any

candidate is done on the basis of his educational qualification, experience, physical

ability, mental ability and his behaviour in the organisation etc. To make selection

procedure more effective and to keep right person at right place, various types of written

tests, interviews, practical tests etc. are organized by information technology industry.

a) Criteria of Selection

Table 7.11, reveals the various criteria of selection procedure, which include -

open interview/test, placement agencies, campus interview, contacts are used by the

information technology organisations. Out of five hundred employees majority of

employees are selected by open interview/test method that is 70.6 percent. It is followed

by campus interview, through which 13.6 percent employees are selected. Next is 9.6

percent and six percent employees are selected by placement ag encies and by contacts.

The 0.2 percent employees are selected by other methods. Hence, in information

technology industry main mode of selection of employees is open interview/test mode,

which is more effective to find out right person for right job. In some cases the unskilled

employees at low level are appointed without any interview or written test.

b) Fairness of Selection Procedure

For the success of any organisation, it is the necessary condition that selection

procedure must be fair. Table 7.12 shows that 59.4 percent employees consider that

selection procedure in information technology organisations is generally fair. On the

other hand 40.6 percent of employees consider that selection procedure is totally fair.

None of employees says that it is unfair. It means employees are selected on the basis of

their capabilities, knowledge and skills in these organisations.

Page 17: Human Resource Development Practices in Information Technology

193

c) Satisfaction with Selection Procedure

Table 7.13, is related to the satisfaction of employees with selection procedure.

Near about, 87.2 percent employees are satisfied with selection procedure but 12.8

percent employees show their dissatisfaction regarding this procedure.

d) Ability of Selection Procedure to Keep Right Person at Right Place

An effective selection procedure is that, which has ability to select right person

and to keep him at right place also. In these organisations 86.4 percent employees, agree

that organisations are capable to keep right person at right place but just 13.6 percent

employees disagreed regarding this (Table 7.14).

2. Training Policy: Training is one of the most vital sub-systems of human resource

development. It is generally carried out either formally or informally in almost all

organisations irrespective of the size of the organisations. Training refers to the activities

carried on by the organisations to increase knowledge, skill and efficiency of employees

to achieve organisational goals. It also helps the new as well as old employees to cope up

with the pressures of changing environment of the modern and dynamic organisations.

a) Provision of Training in the Organisation

Table 7.15 shows that in all the organisations there are provisions of training.

Near about 89 percent employees consider that each and every organisation in

information technology sector has provided training facility to its employees. But 11

percent employees oppose it. Now-a-days, in knowledge oriented industries like

information technology, there is need of multiple-skilled employees. So, these

organisations are providing multiple-skill training to their employees. Near about 89

percent employees consider that multiple-skill training is provided to them and just 11

percent employees say that it is not provided.

Data regarding the provision of training and multiple-skills training is almost

the same. It means information technology industries are providing multiple-skill training

Page 18: Human Resource Development Practices in Information Technology

194

Table 7.13

Satisfaction with Selection Procedure

Choice Yes No Total

No. of employees 436 64 500

Percentage 87.2 12.8 100

Source: Primary Survey

Table 7.14

Ability of Selection Procedure to Keep Right Person at Right Place

Choice Yes No Total

No. of employees 432 68 500

Percentage 86.4 13.6 100

Source: Primary Survey

Table 7.15

Provision of Training in the Organisation

Choice Yes No Total

Is there provision of training in the organisation 445

(89)

55

(11)

500

(100)

Is there provision of multiple training in the organisation

445

(89)

55

(11)

500

(100)

Is training programme need based

423

(84.6)

77

(15.4)

500

(100)

Source: Primary Survey

Braces in table shows % of number of employees

Page 19: Human Resource Development Practices in Information Technology

195

Table 7.16

Level of Employees at Which Multiple-skills Training is Provided

Multiple Choice No. of Employees Percentage

New 42 8.4

Junior level 16 3.2

Middle level 28 5.6

Senior level 22 4.4

All 392 78.4

Total 500 100

Source: Primary Survey

Page 20: Human Resource Development Practices in Information Technology

196

to its employees. It is necessary that training must be provided according to the

requirements of the organisations as well as employees. In information technology

organisations, 84.6 percent employees agree that the need based training is provided to

them, whereas 15.4 percent employees do not agree regarding this. In competitive era,

multiple-skills and need-based-training must be provided to the employees to improve

quality.

b) Level of Employees at Which Multiple-skills Training is Provided

Table 7.16, depicts that multiple-skill training should be provided to the different

levels of employees – new employees, junior level, middle level, senior level and to all

levels of employees. The new employees usually need multiple-skill training before they

assume their posts, according to the requirement of organisation. The senior employees

too require multiple-skills training to increase their quality in dynamic organisations. In

these organisations, multiple-skill training is given regarding communication skills, voice

accent, HR policy, leadership, time management, personality development, financial

management, various computer software and hardware work, e-learning, C++, UBC,

edge, multi-media etc. Table 7.16 shows that 78.4 percent employees consider that

multiple-skill training is provided to all employees at different levels. Followed by 8.4

percent employees consider that it is provided to new employees of the organisation.

Next 5.6 percent, 4.4 percent and 3.2 percent employees consider that multiple-skill

training is provided to middle level, senior level and junior level employees.

3. Performance and Promotion Policy: Performance policy is practiced in most of

the organisations of the information technology industry. For effective performance of

employees, multiple-skill training is provided to the employees at various levels. If the

employee’s performance is satisfactory promotion is given by the organisation.

Promotion refers to the movement of employees to the higher position. It results in an

increase of status, prestige, pay-scale, responsibilities and also a greater personal

satisfaction of employees.

Page 21: Human Resource Development Practices in Information Technology

197

a) Provision of Adequate Career Development Opportunities in the

Organisation

Provision of adequate career development opportunities in these organisations

helps in improving the performance of employees. Table 7.17 shows that in the

information technology organisations, 84.2 percent employees accept that there are

adequate career development opportunities but 15.8 percent employees do not accept it.

b) Satisfaction with Promotion Policy

Satisfaction with promotion policy means that either the employees are satisfied

with the up-gradation in the organisation or they are satisfied that able person/employee

is achieving higher position with his hard work, experience and knowledge. This type of

satisfaction is must for effective human resource development climate. If not, then it can

create conflicts and groupism in the organisation, which is harmful for the growth of an

organisation. In information technology industry, majority of employees that is 83.4

percent, are satisfied with the promotion policy and 16.6 percent are dissatisfied (Table

7.18).

Methods adopted for granting promotion to employees are generally of two

types – formal and informal. Formal methods include 360 degree flexible method of

performance appraisal, half-yearly goal assessments, performance-matrices, career

success factors, are adopted by information technology organisations to assess the

performance. Performance is also evaluated on yearly basis, twice in a year and

according to targets.

c) Nature of Promotion Evaluation Methods

Table 7.19 shows that 85.2 percent employees consider that the information

technology organisations mostly adopted formal methods for performance evaluation.

Just 14.8 percent employees consider that informal methods are adopted for the

performance evaluation.

d) Mechanisms Used by the Organisation for Rewarding Good Performance

Various mechanisms are used by organisations for rewarding good performance. These

mechanisms are - salary increments, cash awards, promotion, foreign travel, appreciation,

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Table 7.17

Provision of Adequate Career Development Opportunities in the Organisation

Choice Yes No Total

No. of Employees 421 79 500

Percentage 84.2 15.8 100

Source: Primary Survey

Table 7.18

Satisfaction with Promotion Policy

Choice Yes No Total

No. of employees 417 83 500

Percentage 83.4 16.6 100

Source: Primary Survey

Table 7.19

Nature of Promotion Evaluation Methods

Source: Primary Survey

Nature of Promotion Evaluation No. of Employees Percentage

Formal 426 85.2

Informal 74 14.8

Total 500 100

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Table 7.20

Mechanisms Used by the Organisation for

Rewarding Good Performance

(No. of Employees = 500)

Multiple Choice No. of Employees Percentage

Salary Increments 435 87

Cash Awards 356 71.2

Promotion 413 82.6

Foreign Travel 149 29.8

Appreciation 428 85.6

Advanced Training At Reputed Institutions 87 17.4

Study Tours 57 11.4

Any Other, Specify 7 1.4

Source: Primary Survey

Table 7.21

Types of Transfer Policy

Types of Transfer Policy No. of Employees Percentage

As Per Worker’s Convenience 16 3.2

Company's Requirement 153 30.6

Both 331 66.2

Total 500 100

Source: Primary Survey

Table 7.22

Employee’s Satisfaction with Transfer/Initial Placement Policy

Source: Primary Survey

Choice Yes No Total

No. of Employees 438 62 500

Percentage 87.6 12.4 100

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advanced training, study tours etc. Table 7.20 shows that majority of employees that is 87

percent employees consider that salary increments, is one of the most popular methods

adopted for rewarding good performance. Next are appreciations, promotion and cash

awards which are accepted by 85.6 percent, 82.6 percent and 71.2 percent employees are

well known methods for rewarding good performance. On the other hand rewards like

foreign travel, advance training at reputed institutions, study tours are – 29.8 percent,

17.4 percent and 11.4 percent are relatively less used methods. Other rewards include

gifts, holiday are accepted by 1.4 percent employees, which is very low.

4. Transfer Policy: Transfer is a process of placing the employees in position, where

they are likely to be more effective and get more job satisfaction. It is a movement of an

employee from one section or department to another at the same or other place, where his

remuneration, status and responsibility is same.

a) Types of Transfer Policy

Table 7.21 shows that transfer of an employee is done on the basis of worker’s

convenience, company’s requirement and keeping in both the requirement’s. Table 7.21,

depicts that 66.2 percent employees consider that a transfer is done on the basis of

keeping in view both the requirements. The transfer policy on the basis of company’s

requirement is 30.6 percent, whereas on the basis of worker’s convenience, it is just 3.2

percent, which is relatively very low.

b) Employee’s Satisfaction with Transfer/Initial Placement Policy

Employees must be satisfied with the transfer policy of the organisation. If any

employee is not satisfied with the transfer policy of the organisation, he will not do his

work conveniently and there will be adverse effect on the productivity of that employee.

Majority of employees’ state, that is 87.6 percent, they are satisfied with the transfer

policy but just 12.4 percent of employees are dissatisfied with this policy in the

information technology organisations, as shown by table 7.22.

5. Wages, Compensation, Social Security and Working Conditions Policy:

Information technology organisations invest in their employees by improving wages and

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compensation, social security and working conditions, so as to increase the productivity

and profitability of the organisations.

a) Employee’s Satisfaction with Wages and Perks

Salary and wages of the employees are not fixed in information technology

industry. They vary from person to person, location to location and accordingly to

organisational size. In information technology organisations, wages of the employees are

much higher than other organisations. Table 7.23 reveals that 94.6 percent employees are

satisfied with their wages and perks, whereas just 5.4 percent employees are not satisfied.

b) Factors for Job Changing

Another feature of information technology industry is that its employees change jobs

frequently in their career. The average duration of the information technology employees

in a firm is very short, as compared to traditional employees. Employees in these

organisations are highly professional, so they change their jobs because of following

reasons – higher salaries and perks, better working conditions, better job satisfaction and

better career growth. Table 7.24 shows that 74.6 percent employees change their jobs for

higher salaries and perks, 63.8 percent for better job satisfaction, followed by 53.4

percent for better working conditions and 31.4 percent employees for better career

growth/opportunities. Around 7.8 percent of employees consider that they don’t want to

change their jobs for any reason because they are highly satisfied with their existing jobs.

c) Employee’s Satisfaction with Job Security in the Organisation

Job security is the main issue for any employee belonging to any organisation. An

employee will put his full efforts only when his job is secure. In information technology

industry, maximum employees consider that their jobs are secure. In private organisations

attrition rate is also very high. Table 7.25 shows that 77.2 percent employees accept that

there is job security in the information technology organisations. But 22.8 percent

employees do not accept that their jobs are secure.

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Table 7.23

Employee’s Satisfaction with Wages and Perks

Source: Primary Survey

Table 7.24

Factors for Job Changing

(No. of Employees = 500)

Multiple Choice No. of Employees Percentage

Higher Salaries and perks 373 74.6

Better working conditions 267 53.4

Better job satisfaction 319 63.8

Better career growth 157 31.4

If any other, specify - -

None 39 7.8

Source: Primary Survey

Table 7.25

Employee’s Satisfaction with Job Security in the Organisation

Choice Yes No Total

No. of Employees 386 114 500

Percentage 77.2 22.8 100

Source: Primary Survey

Choice Yes No Total

No. of Employees 473 27 500

Percentage 94.6 5.4 100

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Table 7.26

Type of Social Security Benefits Provided by the Organisation

(No. of Employees= 500)

Multiple Choice No. of Employees Percentage

Pension 155 31

Provident Fund 493 98.6

Gratuity 441 88.2

Health Insurance 456 91.2

Compensation in case of major accident 361 72.2

Compensation in case of death 187 37.4

Any other, specify - -

Source: Primary Survey

Table 7.27

Provision of Adequate Paid Leave Facilities and Holidays

Choice Yes No Total

No. of Employees 471 29 500

Percentage 94.2 5.8 100

Source: Primary Survey

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d) Type of Social Security Benefits Provided by the Organisation

In India to achieve the goal of employees’ welfare, several laws have been

enacted by the government to provide social security to the workers. Some of the well-

known laws are – The Employee’s Provident Funds - 1952, The Employees State

Insurance Act - l948, The Payment of Gratuity Act - 1972, The Maternity’ Benefit Act -

1961, etc. There are various types of social security benefits such as pension, provident

fund, gratuity, health insurance, compensation in case of major accident and

compensation in case of death, maternity benefit, survivor’s benefit etc. are provided to

employees to secure their future and for their welfare. Table 7.26 conveys that

approximately 98.6 percent, employees reported that provident fund is provided to them,

followed by 91.2 percent employees reporting that health insurance is provided. The 88.2

percent employees accept that gratuity benefit is provided to them. Compensation in case

of major accident is given to employees, is accepted by 72.2 percent. Just, 37.4 percent

and 31 percent employees say that compensation in case of death and pension benefit is

given to them, which is comparatively very low.

e) Provision of Adequate Paid Leave Facilities and Holidays

In information technology industry most of organisations provide, five days work

weeks to their employees. In most of these organisations Saturday and Sunday are off. To

permit for leave or not depends upon the work-schedule. In this industry, there is provision of

adequate holidays and leave as per employee’s requirement and organisational policy.

Majority of employees 94.2 percent consider that there are adequate provisions of leave

facilities and holidays in information technology industry. But a very low percentage –

that is 5.8 percent employees say that they are not satisfied with the provision of adequate

paid-leave facilities and holidays in this industry (Table 7.27).

f) Over Time Working Hours in the Organisation

In information technology organisations working hours are nine hours which include one

hour for the rest time. In these organisations, especially in software organisations,

projects are given to its software specialist employees to complete work within given

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time period. There are relaxed periods as well when there are not many projects or the

projects are at the beginning stages. But if projects are nearing completion, working

hours would extend to any tenure of time. The software organisations provide the option

of flexible office time depending on the convenience of the workers. The number of

hours of work in the IT product and services are much longer than that of the ITES

sector. Table 7.28, shows that 47 percent employees say that they work for longer hours

than as per schedule and they are not paid any over time allowances for extra hours they

work, whereas 53 percent employees say that there are no over-working hours. They do

work, according to the fixed working hours decided by the organisation. If they do

overwork then company pay extra amount to them as an overtime allowance. Hence, there

is fifty-fifty proportion about longer working hours in information technology industry.

g) Usual or Exceptional Working Hours

Working hours further have been divided into two parts – usual working hours

and exceptional working hours. Usual working hours mean to do work for more than

eight hours in routine, while exceptional working hours mean to do work more then

eight hours but rarely. The 55.32 percent employees state that it is exceptional that they

work for more than eight hours on an average in a day. But 44.68 percent employees

state that they usually work for more than eight hours (Table 7.29).

6. Recreational Facility: Information technology being a high-tech industry and high-

competitive industry, the employees in this industry face more stress and depression.

This industry is a dynamic industry in which technologies are ever changing. So,

various types of tensions related to skill, knowledge, competition, government policies,

market fluctuations are faced by organisations which increase the stress level of

employees. In order to overcome stress among employees – industry provides

recreational facilities.

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Table 7.28

Over Time Working Hours in the Organisation

Choice Yes No Total

No. of Employees 235 265 500

Percentage 47 53 100

Source: Primary Survey

Table 7.29

Usual or Exceptional Working Hours

Choice Usual Exceptional Total

No. of Employees 105 130 235

Percentage 44.68 55.32 100

Source: Primary Survey

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Table 7.30

Provision of Recreational Facility in the Organisation

Choice Yes No Total

No. of Employees 492 8 500

Percentage 98.4 1.6 100

Source: Primary Survey

Table 7.31

Types of Recreational Facilities

(No. of Employees=500)

Multiple Choice No. of Employees Percentage

Gym 374 74.8

Indoor/Outdoor games 333 66.6

Meditation/ Yoga classes 348 69.6

Music/ Television facilities 339 67.8

Library facility 350 70

Late night parties 290 58

Club facilities 90 18

If any other, Specify 7 1.4

Source: Primary Survey

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a) Provision of Recreational Facility in the Organisation

To overcome the tension, depression, stress and tiredness among employees and

to make them energetic, active and refresh, information technology sector provides

various types of recreational facilities. Table 7.30 shows that majority of employees near

about 98.4 percent employees agree that organisations provide all these facilities to them

but just 1.6 percent employees say that organisations do not provide such facilities.

b) Types of Recreational Facilities

The activities like – gym, indoor/outdoor games, meditation/yoga classes, music/

television facilities, library facilities, late night parties and club facilities, are provided to

the employees for their relaxation. In the era of high competition – employees need these

types of facilities to minimize their stress and work pressure.

In these organisations, 74.8 percent employees accept that gym facility is provided to

them for their fitness. After this 70 percent, employees state that library facility is provided

to them to upgrade their knowledge and skill. Meditation/yoga classes are provided to them

is accepted by 69.6 percent employees. Music/television facilities are provided to employees

and this is accepted by 67.8 percent employees. Indoor/outdoor games facilities are provided

to employees and this is accepted by 66.6 percent employees. Near about 58 percent

employees’ state that late night parties are provided to them. In information technology

industry, 18 percent employees accept that club facilities are provided to them. Only 1.4

percent employees state that other facilities like holiday tour, may be domestic or foreign

tour are provided to them (Table 7.31). Thus, in general good recreational facilities are

provided to the employees.

7. Employees-Employees/Employer/Management Relations: For the success of

any organisation rapport relation among employee-employee/employer/management

must be strong and cordial; there must be an atmosphere of mutual understanding and

mutual trust. Now a days, there is open and direct communication among all types of

members. TCS, Infosys, Wipro are the set examples, which tell the success stories of

these huge information technology organisations due to strong and harmonious

employee-relationship.

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a) Organisation Encourage Teamwork

In information technology industries, projects are undertaken by the organisations. To

complete these projects there is a need for teamwork, in which members openly

communicate with each other, share their views with each other, respect each other’s

views and show mutual understanding within the group. Success of any organisation is

not a contribution of single person, but is a contribution of all members from top to

bottom level. Table 7.32 depicts that 90.2 percent employees state that there is an

encouragement for teamwork in the organisation but just 9.8 percent employees disagree

with it. The 91.4 percent employees accept that there is freedom to communicate with

their seniors, colleagues and juniors or even with the employees of other departments.

There is not any type of restriction in communication with any one. But just 8.6 percent

employees believed that there is lack of communication.

Now-a-days, the management promotes employees’ participation in decision-

making. In new industries, like information technology industry in the decision- making

process, an employee can also express his views more openly. The 78.6 percent

employees state that they have opportunity to take part in decision-making process but

21.4 percent employees’ state that they do not have freedom to take participation in the

process of decision-making.

b) Management’s Attitude towards Employees

Relation between employee and management generally depends upon the attitude

of management. If management is co-operative, friendly, inspiring and has strong

leadership quality then, it can establish good, strong and harmonious relation with its

employees. By this, an organisation can achieve its set targets. TCS, Infosys, Wipro, Dell

International are the set examples of such kind of attitude. On the other hand if

management’s attitude is dictatorial and indifferent, it cannot motivate its employees in

positive ways. In table 7.33, 79.6 percent and 71.6 percent, employees state that

management’s attitude towards them is corporative, friendly and inspiring. Leadership by

self example is moderate according to 43.6 percent of employees. Whereas 9.6 percent

and 3.8 percent employees consider that the management’s attitude towards them is

dictatorial and indifferent, this is relatively lower. This type of attitude is unfavourable

for any organisation.

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Table 7.32

Organisation Encourage Teamwork

Choice Yes No Total

Is there encouragement for

teamwork

451

(90.2)

49

(9.8)

500

(100)

Freedom to communicate with

senior and co-workers

457

(91.4)

43

(8.6)

500

(100)

Participation of employees in

decision-making process

393

(78.6)

107

(21.4)

500

(100)

Source: Primary Survey,

Braces in table shows % of number of employees

Table 7.33

Management’s Attitude towards Employees

(No. of Employees = 500)

Multiple Choice No. of Employees Percentage

Leadership by self-example 218 43.6

Co-operative and Friendly 398 79.6

Inspiring 358 71.6

Dictatorial 48 9.6

Indifferent 19 3.8

Source: Primary Survey

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Table 7.34

Encouragement to Employees to Experiment/Risk-Taking

Choice Yes No Total

No. of Employees 390 110 500

Percentage 78 22 100

Source: Primary Survey

Table 7.35

Trade Union in Information Technology Industry

Choice Yes No Total

Does trade union exist in your organisation -

-

500

100

500

(100)

Should there be a trade union 46

(9.2)

454

(90.8)

500

(100)

Is there an effective joint conflict management machinery 239

(47.8)

261

(52.2)

500

(100)

Is there grievances redressal machinery in the organisation 252

(50.4)

248

(49.6)

500

(100)

Are the employees satisfied with grievances redressal machinery 234

(46.8)

266

(53.2)

500

(100)

Source: Primary Survey, Braces in table shows % of number of employees

Table 7.36

Methods of Resolving Conflicts

(No. of Employees = 500)

Methods No. of employees Percentage

By informal discussion 288 57.6

By negotiation b/w workers and management 183 36.6

By HR department 449 89.8

By some formal committees 86 17.2

If any other, specify 5 1

Source: Primary Survey

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c) Encouragement to Employees to Experiment/Risk-Taking

In these days management’s attitude towards employees has strongly changed.

Management encourages their employees to do experiments/risk-taking in advance

industries like information technology. Table 7.34 shows that 78 percent employees

accept that their management encourages them to do experiment/risk-taking but 22

percent employees think otherwise.

8. Trade Union: Trade unions are the associations of employees formed to maintain

industrial peace and protect the rights of employees. Generally, trade unions exist in all

types of organisations but in information technology industry, trade unions don’t exist.

a) Trade Union in Information Technology Industry

There is no trade union in information technology industry. Its reason is that all

basic facilities are provided by organisations to its employees or if there are any types of

conflict then they are sorted out by a committee. In information technology industry,

employees also leave the organisation almost within few years because they may get a

better opportunity which reduces the importance of trade union in information technology

industry. On the other hand just 9.2 percent employees state that there is need for trade

union but majority of employees’ that is 90.8 percent do not want any trade union. Table

7.35 shows that 52.2 percent employees state that there is not any effective joint conflict

management machinery; whereas 47.8 percent employees say that there is machinery to

manage conflict effectively. Grievances redressal machinery exists, is accepted by 50.4

percent employees but 49.6 percent employees refuse it. The 46.8 percent employees are

satisfied with grievance redressal machinery while 53.2 percent are not satisfied with it.

b) Methods of Resolving Conflicts

In information technology industries, no trade union exists. So, if there is any type

of conflict or dispute, it is sorted out by different measures – by some formal committees,

by informal discussion, by negotiation between workers and management, by human

resource department. In table 7.36, approximately 89.8 percent employees accept that

maximum conflicts are sorted out by human resource department whereas 57.6 percent

employees say that they are solved by informal discussions. A low percentage of

employees that is 36.6 and 17.2, accept that conflicts are sorted out by negotiation

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213

between workers and management and by some formal committees. Just one percent

employees state that for this other methods are used. Hence, in information technology

industry, instead of trade union, HR department plays a vital role to solve the conflicts.

9. Health Facility: Now-a-days, several health facilities are provided to employees

by the organisations because they know that efficiency in work is possible only when an

employee is healthy. If the employee is not healthy, there will be a high rate of

absenteeism and turnover, industrial discontent and indiscipline, poor performance and

low productivity in organisations.

a) Provision of Medical Facility in the Organisation

In information technology industry various types of health facilities are provided

to employees like medical facilities and improved working conditions. In various

information technology organisations, medical check-ups of employees are done at the

time of recruitment to check their physical fitness to perform work efficiently. Table 7.37

shows that hundred percent employees state that medical facilities are provided to them

by these organisations.

b) Work Related to Health Hazards in the Organisation

Despite good health facilities in information technology organisations, majority of

employees face work related health hazards. In information technology organisations

there are various health hazards because of stressful job and long-working hours. These

health hazards create various health problems like obesity problem, backache problem,

joint pain, eyes stress. In information technology organisations, near about 82.6 percent

employees are facing problems related to eyes because of long time working on computer

screen. Other problems are backache problem, neck pain and obesity problem which is

accepted by 89.2 percent, 50 percent and 39 percent employees. Joint pain problem is

faced by 24.8 percent employees, 2.6 percent employees face other health problems like

headache, swelling on feet etc (Table 7.38). In information technology industry, eyes

stress is the main health hazard which is faced by employees in majority, followed by

backache and neck pain.

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Table 7.37

Provision of Medical Facility in the Organisation

Choice Yes No Total

No. of Employees 500 - 500

Percentage 100 - 100

Source: Primary Survey

Table 7.38

Work Related to Health Hazards in the Organisation

(No. of Employees =500)

Multiple Choice No. of Employees Percentage

Obesity Problem 195 39

Backache Joint Problem 296 59.2

Joint Pain 124 24.8

Neck Pain 250 50

Eyes Stress 413 82.6

Any Other, Specify 13 2.6

Source: Primary Survey

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215

Table 7.39

An Equal Opportunity/No Bias Institution

Source: Primary Survey

Braces in table shows % of number of employees

Table 7.40

Facilities to Women Workers

(No. of Employees = 500)

Multiple Choice No. of Employees Percentage

Maternity Leave 497 99.4

Hostel Facility 48 9.6

Crèche Facility 100 20

Exemption From Night Shifts 307 61.4

Special Convenience Facility 338 67.6

If Any Other, Specify 7 1.4

Source: Primary Survey

Multiple Choice Yes No Don’t

Know

Total

Whether the organisations are equal

opportunity/no bias institution

457

(91.4)

4.3

(8.6)

- 500

(100)

Are the organisations encourage to women

workers and consciously promotes no

gender discrimination

416

(83.2)

8

(1.6)

76

(15.2)

500

(100)

Are unmarried female workers want to

continue their job after marriage

108

(99.08)

1

(0.92)

- 109

(100)

Are married female workers feel difficult to

pull on with their job

17

(15.60)

92

(84.40)

- 109

(100)

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216

10. Other Aspects: It includes other relevant aspects of human resource development

practices like whether the organisations are equal opportunity/no bias institutions. Other

welfare measures – like housing, schools, hospitals, transportation facilities, provision of

stock option, adequacy staff and the stressfulness of job etc. are covered under other

aspect.

a) An Equal Opportunity/No Bias Institution

As per Indian Law - equal wage must be paid for equal work without any bias for

caste, community and gender. In information technology industries, the participation of

female employees is less because of social constraints and long-working hours. But in

these industries, there is not any gender bias. The 91.4 percent employees state that it is

an equal opportunity institution but just 8.6 percent employees opted otherwise. Likewise

83.2 percent employees state that information technology industry encourages the woman

employees to participate and promotes conscious no gender discrimination policy. The

15.2 percent employees do not know and express their ignorance about gender sensitivity

issue. The participation of female employees is low in information technology industry.

In case of female employees 84.40 percent feel that they don’t find it difficult to pull on

with their jobs after marriage, but 15.60 percent female employees feel otherwise.

However, 99.08 percent of female employees want to continue their jobs even after

marriage (Table 7.39).

b) Facilities to Women Workers

Information technology provides several facilities to the woman employees for

their welfare and to increase their participation ratio. There are provisions of maternity

leave facility in these organisations. Table 7.40 conveys that near about 99.4 percent

employees consider that maternity benefit is provided to female employees when

required. The 67.6 percent employees consider that special conveyance facility is

provided to female employees, whereas 61.4 percent employees accept that exemption

from night shift facility is provided to female employees. Twenty percent employees state

that creche facility is provided. The 9.6 percent employees’ reports that hostel facility and

1.4 percent state that other facility are provided to female employees. So, information

technology industry plays a vital role in the welfare of women employees by providing

them special facilities.

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217

c) Other Welfare Measure

Other welfare facilities like housing facility, co-operatives, schools, hospitals,

sponsorship for high education and transportation facilities are also provided to

employees. Many information technology organisations have already established schools

and hospitals for the welfare of their employees and provide services at low charges.

These organisations provide transportation facilities to its employees, 96.4 percent of

employees accepted it. The 51.6 percent employees state that hospital facility is provided

to them and 43.2 percent employees state that housing facility is also provided to them.

Sponsorship for higher education facility is accepted by 39.4 percent employees. The

22.4 percent employees accepted that school facility is provided to them by organisations.

A very low percentage of employees that is 14.2, consider that co-operative facility is

provided to them (Table 7.41).

d) Provision of Stock Option in the Organisation

Today, several organisations are providing the stock option to their employees. It

means that employees can buy the share of the organisations but this facility is provided

mainly to the senior employees only. In table 7.42, 50.8 percent employees consider that

there is provision of stock option for them but 49.2 percent employees state that there is

no provision of such facility. Thus, there is fifty-fifty proportion response of employees

about stock option facility in information technology industry.

e) Adequate Staff in Organisation

In table 7.43, 50.8 percent employees state that there are adequate staff members

in the organisations but 49.2 percent employees disagreed. There is fifty-fifty ratio of

employees who have different opinions regarding adequacy of staff in organisations.

f) Stressfulness of Job

Information technology, being a high-tech sector there is a lot of pressure or stress on the

employees to achieve desirable goals. Although, several welfare facilities and recreational

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218

Table 7.41

Other Welfare Measure

(No. of Employees =500)

Multiple Choice No. of Employees Percentage

Housing facility 216 43.2

Co-operatives 71 14.2

Schools 112 22.4

Hospital 258 51.6

Sponsorship for higher education 197 39.4

Transportation 482 96.4

Any other, Specify. - -

Source: Primary Survey

Table 7.42

Provision of Stock Option in the Organisation

Choice Yes No Total

No. of Employees 254 246 500

Percentage 50.8 49.2 100

Source: Primary Survey

Table 7.43

Adequate Staff in Organisation

Choice Yes No

No. of Employees 254 246

Percentage 50.8 49.2

Source: Primary Survey

Table 7.44

Stressfulness of Job

Choice Yes No

No. of Employees 444 56

Percentage 88.8 11.2

Source: Primary Survey

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219

facilities are provided to the employees to reduce their stress but still 88.8 percent

employees confess that it is really a stressful job. Just 11.2 percent employees deny that it

is stressful job (Table 7.44). The emergence of information technology industry in India

has brought numerous changes in Indian economy. The information technology industry

is a knowledge intensive, hi- tech and a multi-skill industry. This sector has converted

Indian economy from traditional economy to highly knowledgeable and highly

competitive economy. In India, there are several information technology organisations

whose product and services are not only well known in India but also in foreign countries

like USA, UK etc. These organisations have provided work to unemployed population.

Hence, this sector has proved a backbone for Indian economy.

Success of information technology industry lies in its knowledgeable, skilled and

competitive labour-force. These organisations have given more emphasis to its human

resources. Various organisations in this industry have achieved many awards for being

best employers. In information technology industry many favourable human resource

development practices have been implemented. These are selection procedure, transfer

policy, training policy, performance and promotion policy, wage compensation, social

security and working conditions policy, recreational policy, employee-employee/

employer/ management relations and health policy.

Thus it can be calculated that in information technology sector, most of young and

technical skilled people are employed belonging to urban-areas and majority of them are

male employees. The participation of women employees is relatively lower because of

socio constraints, night-shifting, long-working hours and highly challengeable nature of

jobs. Data reveals that in this industry majority of employees are unmarried. The nature

of the job of most of employees is technical. In this industry majority of employees are

young, so majority of them have experience less than five years. The monthly income of

employees in information technology organisations is very high as well as flexible,

which differs from location to location and varies with size of organisations and skill of

employees. Large organisations are offering high salaries and benefits to their workers as

compared to their smaller counterparts. In this survey maximum employees do not

disclose their monthly income. Most of employees are permanent in nature of

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appointment, because industry spends a large amount of resources on the training of their

employees.

Data reveals that information technology industry selects its employees through

several fair interview and test rounds in organisations, so that they can get skilled and

efficient employees. Majority of employees are also satisfied with selection procedure of

surveyed organisations. Maximum employees also accept that selection procedure has

ability to keep right person at right place. Information technology industry is high-tech

and dynamic industry, so it provides multi-skills and need-based training to all

employees employed at any level, to tackle with competition and stress. In information

technology industry, majority of employees state that there is provision of adequate

career development. In this sector to evaluate the nature of promotion, formal method is

adopted and majority of employees are satisfied with promotion policy.

For good performance, rewards like salary increments, cash awards, promotions,

foreign travel etc. are given to employees. Most of employees state that salary increment

method is one of the most popular methods for rewarding good performance. Majority of

employees are satisfied with transfer policy and it is done on the basis of worker’s

convenience and company’s requirement. Data conveys that industry pays high wages,

compensations, social securities and perks, job security. Employees are highly satisfied

with these facilities. Majority of employees state that if they will change the present job

they will do so for higher salaries and perks. The working conditions in these

organisations are well improved. The sanitation, ventilation, proper lighting is taken into

consideration. Provident fund, gratuity, health insurance facilities and compensation in

case of major accidents are provided to most of the employees. In this sector, there is

provision of leave facilities and holidays. These organisations pay for overtime to

employees.

In information technology industry, to meet the set targets, employees are

constantly under the pressure of work because of long-working hours, to complete the

projects within the specific time limits. Many types of recreational facilities - gym,

indoor /outdoor games, meditation /yoga classes, library facilities and late night party

facilities are provided to them for their entertainment and to reduce work pressure.

Majority of employees said that the top management in information technology sector is

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very co-operative, friendly, encouraging and inspiring. There is no trade union. If there is

any type of conflict then it is solved by human resource department and other formal or

informal committees.

Health facilities are provided to employees, are accepted by all surveyed

employees. In spite of good health facility majority of employees face health hazards

mainly related to eyes, neck pain and obesity. In these organisations there is not any type

of discrimination among male and female employees. Various facilities are provided to

female employees to increase their participation ratio in this industry. Here, all

employees are equal and have open communication among them. For the welfare of

employees various facilities like medical, transportation, co-operative, hostel and hospital

facilities are provided to them. There is also provision of stock option for employees.

There is provision of adequate staff in this industry. Majority of employees accept that in

information technology work is really stressful. In spite of this majority of employees are

satisfied with the prevailing human resource development practices in information

technology industry in India.