1.

1 Learning to Compete : The Performance Effect of Human

Resource Management (A Critical Evaluation of IT Industry
in Nagpur) Submitted to RashtraSant Tukdoji Maharaj
Nagpur University, Nagpur for the Award of Degree of
Doctor of Philosophy In the Faculty of Commerce (Board
of Studies in Business Management & Administration)
Researcher Mohan Sawade M.B.A. M.I.R.P.M. M.C.M. D.B.M.
Under the Guidance of Dr Vivek Pimplapure M.B.A.,
M.Com.,M.Phil.Ph.D. Welcome to Open Defense A Doctoral
Thesis Presentation on
2. 2 Introduction Under present market forces and strict
competition, the Software Companies are forced to be
Competitive. Software Companies must seek ways to
become more Efficient, Productive, Flexible and Innovative
to stay ahead. HR system plays a key role & have a
practical impacts on the survival and financial aspects of IT
firms besides the productivity and quality of work life of
the people in them.
3. 3 The practical knowledge of HR has been gained mainly by
observing all the activities taking place in HR department.
Under present market forces and strict competition, the
software companies are forced to be competitive. Software
companies must seek ways to become more efficient,
productive flexible and innovative under constant pressure
to improve results. HR system have important, practical
impacts on the survival and financial performance of firms

and on the productivity and quality of work life of the

people in them HR practices helps in increasing in
productivity and quality and to gain the competitive
advantage of a workforce strategically aligned with the
organization goals and objective. HRA also involves
accounting for investment in people and their replacement
costs, as also the economic value of people in an
organization. Evaluation becomes fairer if it is based on
the records of periodic counseling & achievements of the
employee, tracked over the year. Introduction
4. 4 HR As A Management Function In IT Industry The
knowledge economy encompasses all jobs, companies,
and industries in which the knowledge and capabilities of
people, rather than the capabilities of machines or
technologies, determines competitive advantage. The
manufacturing sector is also becoming more dependent
on knowledge and human capabilities as microprocessors
and computers pervade almost every facet of work.
5. 5 Human know-how is a crucial component in virtually
everything we produce, and it determines how we produce
valued goods and services. HR As A Management Function
In IT Industry
6. 6 Rational of the Study The primary purpose of this
research is to provide a careful description of the various
workplace practices used by Indian IT companies and to
examine the effect of these different practices on their
performance. The Study will also uncover the details of
workplace practices in an environment that has not been

widely researched in the past and in IT industry which is a

vital source of livelihoods for low income groups and
source of foreign exchange for many less developed
countries
7. 7 Objective of the Study To study the HRM practices and
policies adopted and implemented in IT companies in
Nagpur. To study the effect of particular human resource
policies and practices, and systems on performance of
employees. To analyze the role of HR in developing
organizational competencies. To identify the HR practices
for high performing employee engagement.
8. 8 To analyze the investment in Human Resources
Management which can contribute to a firms efficiency by
improving the skills, welfare and loyalty of employees. To
study the functions of various departments individually
and jointly with respect to H.R. department. To suggest
the effective means and measures in effective working of
the organization. To evaluate the performance level of
employees at various levels. Objective of the Study
9. 9 IT Companies In Focus at Nagpur 1) Premier Technologies
2) Persistent Technology Group 3) Lambent Technologies
4) Info-spectrum 5) Precision 6) ACES e-technology 7)
ADCC Research and Computing 8) Prism Technologies 9)
Ascent Transcription Services 10) Central System Provider
and etc.
10. 10 Hypothesis 1) The local IT companies do not implement
advanced HRM Systems. 2) More extensive use of High
Performance Work Practices will be positively associated

with Market Performance.

11. 11 Research Methodology Universe of the Study The
universe selected for the study is Nagpur region.
Population The target population for this study is all the IT
Companies in Nagpur region were treated as sample.
12. 12 Sample Size Each and every aspect of human resource
management in all IT companies in Nagpur was
investigated. Sr. No. Sample Unit Sample Size 01 IT
Company Employees 500 02 IT Company Officials 50
Research Methodology
13. 13 Method of Sampling For the purpose of this study
Non-probability sampling technique of Quota Sampling
was employed as the sample size was small and fixed and
the sampling unit was clearly defined. Questionnaire
asked for all the categories were closed ended. Both
Descriptive and exploratory research was used in
compiling this study. Research Methodology
14. 14 Tools of Data Collection Pre-designed questionnaire
and pre-structured Interview schedules was canvassed for
collecting primary data to study each and every aspect of
Human Resource Management in IT Companies in Nagpur.
Research Methodology
15. 15 Data Analysis & Interpretation For the purpose of
study 500 respondents were identified and questionnaire
were distributed amongst them. Only 387 respondents
have submitted duly filled in questionnaire. Hence analysis
is done on the basis 387 respondents.
16. Gender Wise Classification of Data Gender Frequency % of

total respondent Male 255 66 Female 132 34 Total 387

fference in ratio of male &
female respondents is the actual ratio of employees
recruited in the selected IT firms are approximately 70:30
(male: female) Data Analysis & Interpretation
17. Classification on the basis of Age Majority of respondents
are belonging to the age group of 26 years to 35 years
which in terms of percentage 44% total sample size. Apart
from this age-group, mainly age group of 18 25 is
having second largest share which is around 25% of total
sample size, which reveals that there is heavy scope of
employment at early age. Data Analysis & Interpretation
18. Educational Qualification Qualification No. of Respondents
% of Composition Diploma 61 16 Graduate 211 55 Post
Graduate 75 19 Other 40 10 Total 387 100 Data Analysis
& Interpretation
19. Years of Employment in the Company Years of
Employment No. of Respondents % compositio n 0-2 108
28 2-5 yrs 206 53 5 & above 73 19 Total 387 100 Data
Analysis & Interpretation
20. Current Designation in the Company Designation Frequen
cy % of total Manager 32 8 Software Developer 195 50
Hardware and system specialist 82 21 Administrative Staff
45 12 Other 33 9 Total 387 100 Data Analysis &
Interpretation
21. Professional Relationship with Colleagues Designation
Frequency % of total Yes 286 74 No 64 26 Cant say 37 10
Total 387 100 Data Analysis & Interpretation

 22. Career Advancement Designation Frequency % of total Yes

322 83 No 45 12 Cant say 20 5 Total 387 100 Data
Analysis & Interpretation
23. Recreational Activities Response Frequency % of total Yes
350 90 No 37 10 Total 387 100 Recreational activity is one
of the vital part in employees commitment towards
organizational goals. Recreational activity is one of the
vital part in employees commitment towards
organizational goals. Data Analysis & Interpretation
24. Recognition for Achievements One of the key factor for
motivating and increasing employees commitment is
recognition for achievement. On analyzing this point it is
revealed that there is good numbers of employees are
getting the recognition for their achievements Recreational
activity is one of the vital part in employees commitment
towards organizational goals. Designation Frequency % of
total Yes 216 56 No 33 9 SOME TIME 138 36 Total 387
100 Data Analysis & Interpretation
25. 25 Hypothesis Testing Local IT Companies do not
implement advanced HRM system.
26. 26 Result of t- test Variable p value HRM
Practises

Training 0.92 Performance Appraisal 0.91

Rewards 0.63 Benefits 0.21 Working Condition 0.32 Equal

Employment Opportunity 0.38 Information Sharing 0.5
Since the Sig. value is greater than 0.05. The Hypothesis
Local IT Companies do not implement advanced HRM
system was supported.
27. 27 Hypothesis Testing More extensive use of High

Performance Work Practices will be positively associated

with market performance
28.
between an organizations business strategy, HR systems
and employee relations strategy; specifically, incentive HR
strategy and Traditionalist strategy are more likely to be
found in ch
strategy and Sophisticated moderns strategy is more likely
to be found in Analyzer organizations, and Involvement
HR strategy and Standard modern strategy is more likely
to be found in Prospector organizations.
29. 29 Hypothesis Testing Therefore ,Hypothesis More
extensive use of High Performance Work Practices will be
positively associated with market performance was
supported.
30. 30 Findings 1) Majority of sample respondents are
belonging to age group of 18 to 25 years. 2) The majority
of sample respondent in the study are having the
maximum qualification as Graduate. The main reason
behind this may the early openings of job in this sector.
31. 31 3) Regarding the holding of current designation in the
organization 50% of the sample respondents are software
developers, whereas 21% are hardware and system
specialist. 4) Around 75% i.e. 290 respondent said there is
a possibility to talk to your boss about subjects not related
to business, Findings
32. 32 5) The professional relationship with the employees
working in the organization is very solid and healthy. 6)

The findings in this study show that the respondents

prefer a challenging and interesting work. The same result
has been found in studies that showed that the majority
of the IT professionals feel that an interesting and
challenging work is an important motivational factor for
performing a good work. Findings
33. 33 7) There is ample opportunity exist in the current
organization for career advancement, around 83% of the
total respondent said they find very good career
advancement in the organization in which they are
working currently. 8) There is good numbers of employees
are getting the recognition for their achievements, though
there might be having a differential policy for recognition
for achievement. Findings
34. 34 9) Many a time organizations promote their employees
for further studies as around 60% of the employees have
given conformity for this question, very negligible
employees have given negative response. 24% of
employees said it offered on occasional basis, keeping
merit factor in to consideration. 10) Many organizations
have accepted the role of HR executives is one of the
main concerns for formulating firm strategy for success.
Findings
35. 35 11) It has also been found that job satisfaction has
been related to employees supervision and pay
satisfaction, which is evidence that monetary incentives are
a motivating factor. 12) It is observed that if the
management gives more attention to training and career

development to their employees, it will be a step for

gaining superior employee commitment, which in return, it
can enhance, organizational knowledge management.
Findings
36. 36 Conclusion 1) The results from the study conclusively
indicate that when selection, compensation, and appraisal
HR practices interacted with highly employee participative
management systems , it will have a significant and strong
positive relationship to financial performance of the
organization.
37. 37 2) The area of selection is widely diverted from
Intelligent Quotient (IQ) to emotional Quotient (EQ).
Organisations are looking for those men who can handle
the complex business situations in proper way. Conclusion
38. 38 3) Study successfully examines the case of adjustment
in a low-cost, labor intensive model , to understand how
traditional factors in developing regions IT companies
cope with external crises and rise above them like phoenix.
Conclusion
39. 39 4) The study clearly indicated that IT firm dependent on
the factors like size, age, network of firm and it plays a key
role and impacts the performance of the firm either
directly or indirectly. 5) In short the performance effect of
any IT firm largely dependent on its type of HR system
and policies it implements. Conclusion
40. 40 Suggestions 1) Many IT company officials have
suggested that HRM has to focus on developing a model
that examines hierarchical impacts of HRM on

organizational performance. 2) HRM should focus on

developing measures of organizational performance that
can be used for organizations at business unit level.
41. 41 3) For the Success of organization management has to
try and maintain a good communication for constant flow
of information and to make the employees feel that they
really are part of the organization. Suggestions
42. 42 Thank You !