human resource development practices in information technology
TRANSCRIPT
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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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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.
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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
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(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 =
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.
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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
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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
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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
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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.
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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
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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
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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
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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.
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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
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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
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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.
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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
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
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
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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.
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,
198
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
199
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
200
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
201
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.
202
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
203
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
204
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
205
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.
206
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
207
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
208
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.
209
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.
210
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
211
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
212
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
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.
214
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
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)
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.
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
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
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
220
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
221
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.