Chapter V FINDINGS, SUGGESTIONS AND CONCLUSIONS 5.1 FINDINGS: The major findings of the study based on the analysis and interpretation of the data are stated below: 1. Majority of the respondent employees (59.25%) in Computer software industries are in the age group of 31 to 40 years; Of these 76.80 % are post graduates. 2. 87.30% of respondent employees are males. Thus male employees are more in Computer software industries. 3. Of the sample 189 respondent Computer software industries in Karnataka, 109 industries have above mean score of 99.67 %.This indicates that majority have better HR policies and practices. 4. 163 respondents opined that the quality of services provided by the HR department in the Computer Software Industries is satisfactory. 5. 145 employees, out of 189 agree to the fact that there is a good HRD climate in the Computer Software Industries. 6. The mean value of the score was 125 which denote a moderate level of service delivery by the HR department. 7. Moderate turnover (Above 25 but below 50 crores turnover) Computer software industries have better human resource 325
development policies and practices than the Low turnover (below 25 crores turnover) Karnataka. Computer software industries in 8. High turnover (Above 50 crores turnover) Computer software industries have much better human resource development policies and practices than the Low turnover ( below 25 crores turnover) Computer software industries in Karnataka. 9. High turnover (Above 50 crores turnover) Computer software industries have better human resource development policies and practices than the Moderate turnover (Above 25 but below 50 crores turnover) Computer software industries in Karnataka. 10. Majority (77.20 %) of Computer software industries carry out role analysis of employees. 11. Low turnover Computer software industries and moderate turnover Computer software industries in Karnataka are more or less equal in respect of role analysis of employees. 12. High turnover Computer software industries have much better to low turnover Computer software industries with regard to role analysis of employees. 13. High turnover Computer software industries have much better practices compared to moderate turnover Computer software industries with regard to role analysis of employees. 14. In majority of Computer software industries Human resource planning is done particularly to meet the circumstances like 326
capacity enhancement (94.7%), resignation, (77.8%), retrenchment, (51.3%), retirement (55. 6%) and transfers (52.9%). 15. Majority of Computer software industries undertake HR planning yearly. 16. Moderate turnover Computer software industries have much better human resource development policies and practices compared to Low turnover Computer software industries with regard to human resource planning. 17. High turnover Computer software industries have much better to low turnover Computer software industries with regard to human resource planning. 18. High turnover Computer software industries have much better to low turnover Computer software industries with regard to human resource planning. 19. Majority of (77.80%) Computer software companies have formal recruitment policy. 20. Majority (72%) of computer software companies are not giving importance to domicile state factor in recruitment. 21. Experience (85.2%),compensation (83.6%) and age (76.7%) are dominant factors and regarding which computer software industries are less flexible; whereas in respect of qualifications(58.7%), service bond (66.1%),working hours (64%) and resignation (64.6%) are also much important factors in 327
recruitment and regarding which industries are much flexible. Also gender and nationality are considered by only few companies and they are much flexible with regard to these factors. 22. More or less Computer software industries practice both centralized and decentralized. 23. In majority of Computer software industries there is a clear recruitment policy. 24. Majority of Computer software industries have a clear criterion of selection of employees. 25. Majority of Computer software industries depend on external sources of recruitment. 26. The major criterions for selection are aptitude test, presentation, personal interview, medical examination and reference checking. 27. Online presentation, interview and reference checking are practiced in many of the Computer software industries. 28. Experience and qualification are the important factors considered while recruiting the employees. 29. Referral scheme, e-mail sourcing, advertising, social media network is widely used as a source of recruitment. 30. Employment outsourcing is also gaining importance (59%) apart from using the services of manpower consultants (64%). 328
31. In majority of the computer software industries recruitment is carried out by Functional managers in consultation with the HR department (66.13%) 32. Moderate turnover Computer software industries have little better human resource development policies and practices compared to low turnover Computer software industries with regard to recruitment. 33. High turnover Computer software industries have much better to low turnover Computer software industries with regard to recruitment. 34. High turnover Computer software industries have much better to moderate turnover Computer software industries with regard to recruitment. 35. All most all (99.5%) Computer software industries are conducting formal induction programme for the new employees. 36. In majority (87.30%) of the Computer software industries HR department is conducting the induction programme. 37. There are no differences between low turnover, moderate turnover and High turnover Computer software industries with regard to the HRD policies and practices in respect of induction. 38. All most all (95.8%) Computer software industries have formal training and development practices. 329
39. 85.2% of Computer software industries are practicing the assessment of Training and development needs in their organisation regularly. 40. Training and development needs are identified by following three different methods, namely recommendation of the Superior, performance appraisal and interaction with individual employees in Computer software industries. Thus, a healthy practice of using multiple methods for determining the training needs of employees exists in Computer software industries. 41. Coaching (86.50%) is more widely used compared to job rotation (74%) for training and development. 42. Training is a most common practice in software firms. Training is imparted through different methods like lecture, seminars, role plays, workshops; brainstorming session etc. 94 % respondents agree that they have undergone training in their companies more than twice. Training is given to the employees to improve technical skill, introduction of new methods and as well as to improve their communication skill, soft skill personality etc. 43. The contents of the training programme includes team building activities, participative management, feedback system, time management and communication Skills. 44. Moderate turnover Computer software industries have much better human resource development policies and practices compared to low turnover Computer software industries with regard to training and development. 330
45. High turnover Computer software industries have much better to low turnover Computer software industries with regard to training and development. 46. High turnover Computer software industries have better to moderate turnover Computer software industries with regard to training and development. 47. Human resource department carries out career planning and development activities (79.90%) in Computer Software industries. 48. Career planning and development activities, consists of dissemination of career options and informations, assessment centers, career counseling, career development workshops, continuing education and training and periodic job change in majority of Computer Software industries. 49. Moderate turnover Computer software industries have slightly better human resource development policies and practices than the Low turnover Computer software industries with regard to career planning and development. 50. High turnover Computer software industries have better to low turnover Computer software industries with regard to Career planning and development. 51. High turnover Computer software industries have better 331
to moderate turnover Computer software industries in with regard to career planning and development. 52. All most all use promotion as a motivation tool in Computer software industries. 53. Transfer is also popular in Computer software industries as a motivation tool. 54. Transfer happens due to multiple reasons like promotion, filling new vacancy, job rotations and new projects in Computer software industries. 55. Transferand promotion happens most of the times due to the introduction of new projects. 94% of the respondents opine that, transfer and promotions happen only to execute the new projects. 56. Seniority cum merit is widely practiced as a basis of promotion in Computer software industries. 57. No demotion happens in majority of the Computer software industries. 58. Though both low turnover and moderate turnover are equal Moderate turnover Computer software industries have slightly better human resource development policies and practices than the low turnover Computer software with regard to transfer /promotion/ demotion. 59. High turnover Computer software industries have much better 332
to low turnover Computer software industries in Karnataka with regard to transfer /promotion/ demotion. 60. High turnover Computer software industries have much better human resource development policies and practices compared to Moderate turnover Computer software industries in Karnataka with regard to Transfer /promotion/ demotion 61. Only 51.30% of the Computer software industries are encouraging employee participation in management. Thus, it is not widely practiced. 62. No board room representation is given in Computer software industries. 63. Only few Computer software industries are allowing the employees to take part in decision making relating to human resource management. 64. Low turnover and moderate turnover Computer software industries are more or less equal in respect of employee participation in management is concerned But interestingly the mean difference shows that low turnover industries have marginally better human resource development policies and practices than the moderate turnover Computer software industries management. with regard to employees participation in 65. High turnover Computer software industries have better to Low turnover Computer software industries with regard to employee s participation in management. 333
66. High turnover Computer software industries have better to moderate turnover Computer software industries with regard to employees participation in management. 67. All most all Computer software industries in Karnataka (96.80%) are measuring their employee s performance by conducting timely performance appraisal. 68. Majority of the firms (62.40%)) are conducting the appraisal annually. 69. Establishing performable standard, its communication, evaluation and discussion with employees is the practice followed (92%) in majority of computer software industries. 70. There will be both an external appraiser and internal appraisers in the appraisal process. 71. There is an involvement of both appraiser (100% ) and appraise (94.50% ) in the appraisal process in Computer software industries. 72. In case of appraising of core executives at higher level reviewer is also involved in the appraisal process. 73. In majority cases the appraisal is carried out internally. 74. Rewards, promotions, compensation, termination, transfers and training are the major decisions commonly observed across all the respondents of Computer software industries based on performance appraisal.. 334
75. Moderate turnover Computer software industries to some extent have better human resource development policies and practices compared to low turnover Computer software industries with regard to performance appraisal. 76. High turnover Computer software industries have better to low turnover Computer software industries in Karnataka with regard to performance appraisal. 77. High turnover and moderate turnover Computer software industries in Karnataka follow all most similar practices with regard to performance appraisal. Only small difference exists but high turnover industries are little better placed. 78. Considerable (50.80%) number of Computer software industries are conducting compensation survey. 79. Majority (85.70 %) of Computer software industries in Karnataka are communicating compensation policy to their employees. 80. Compensation structure of most (87.30 %) of the Computer software industries in Karnataka consists both fixed and variable salary. 81. There is no consensus among Computer software industries regarding the factors to be considered in determining compensation policy. Some are considering performance appraisal, some are considering compensation survey and few are considering both. 335
82. Though moderate turnover and low turnover Computer software industries follows same practices the mean difference indicates that moderate turnover industries are slightly better practices than the low turnover Computer software industries in Karnataka with regard to compensation. 83. High turnover Computer software industries have much better to low turnover Computer software industries in Karnataka with regard to compensation. 84. High turnover Computer software industries have much better to moderate turnover Computer software industries in Karnataka with regard to compensation. 85. All most all (98.90 %) employees are eligible for welfare facilities and benefits in Computer software industries. 86. Medical facility and transport facilities ( 94% ) are the two benefits which almost all industries provide to their employees. 87. Majority of Computer software industries provide canteen facilities (69%). 88. Loan facility to employees exists (51.30) in good number of software companies. 89. Educational assistance, club membership, personal accident benefit policies and insurance benefits are offered only in few software industries. 336
90. Though moderate turnover and Low turnover Computer software industries follows same practices the mean difference indicates that moderate turnover industries have slightly better practices than the low turnover Computer software industries i with regard to compensation. 91. High turnover Computer software industries have much better to low turnover Computer software industries with regard to welfare facilities and benefits. 92. High turnover Computer software industries have much better to moderate turnover Computer software industries with regard to welfare facilities and benefits. 93. All Computer software industries are giving provident fund benefit. 94. Majority of Computer software industries provide gratuity (92.10%) and maternity ( 82 %) benefits to their employees. 95. Considerable number of Computer software industries (57.7 %) are offering Leave travel concession. 96. Majority of Computer software industries are offering gifts (91.50%) and monetary reward (76.70 %) for better performance. 97. Only few Software companies have offered employees stock option plan (ESOP).(32.80%). 98. Less number of Computer software industries has the policy of sponsoring for holidays and tours (13.2%). 337
99. Low turnover Computer software industries and Moderate turnover Computer software industries are all most equal with regard to the HRD policies and practices in respect of Rewards to employees. However. The mean difference indicates that Computer software industries have little better practice compared to low turnover software industries. 100. High turnover Computer software industries have better to low turnover Computer software industries with regard to Rewards to employees. 101. High turnover Computer software industries have much better to moderate turnover Computer software industries with regard to Rewards to employees. 102. Majority (70.40%) of the Computer software industries have grievance redressal system in place. 103. Majority of Computer software industries attends grievances issues relating to promotions (64 %), compensation (68.30%), benefits (66.10%) and reward (63.50%). 104. Only few are giving attention for grievances issues relating to shifts and working hours, deputation, transfer, sexual harassment and gender bias. 105. Low turnover Computer software industries and moderate turnover Computer software industries in Karnataka are all most equal with regard to the HRD policies and practices in 338
respect of Grievance redressal. But moderate turnover Computer software industries have marginally better practices. 106. High turnover Computer software industries have much better to low turnover Computer software industries with regard to grievance redressal. 107. High turnover Computer software industries have much better to moderate turnover Computer software industries with regard to grievance redressal. 108. All HR policies and practices have high correlation with the overall HR practices in the industry. Thus, higher the turnover better is the HR policies and practices in Computer software industries. 109. In case of induction there is a very low degree of correlation (+.20) to overall HR practices (+1) Thus induction of new employee is not fully depending on turnover. Irrespective of the turnover induction is performed by all most all Computer software industries. 110. No high degree correlation between rewards (+ 520) and overall HR practices (+1). It implies that in low turnover computer software industries also employees are offered rewards for better performance. 111. There exists a high degree of between role analysis, human resource planning, recruitment, performance appraisal, career planning and development, transfer/promotion/demotion, 339
training and development, employees participation in management, compensation, employee welfare facilities and benefits, grievances redressal and overall human resource policies and practices in computer software industries in Karnataka. This indicates higher the turnover better will be the HR policies and practices. 112. At the end it is found that higher the turnover better is the HR practices. Healthy HR policies and practice is depending on turnover. 113. In all it is found that moderate turnover Computer software industries have better HRD policies and practices compared to low turnover Computer software companies. 114. High turnover Computer software industries are better placed compared to moderate turnover Computer software companies and low turnover software industries with read to HRD policies and practices on overall basis as well as various HRD intervention wise. 340
5.2 SUGGESTIONS: Human resources are one of the most important asset of the organizations. Human resources provide an organization a source of sustainable competitive advantage in a highly competitive environment, facing a shortage of talents. The management of these vital resources is critical for the effective utilization of this talent and success in the market place. In order to create value and deliver results, the HR department must begin not by focusing on the activities or work of HR but by defining the deliverables of that work. a) Suggestion to Improve the Overall Quality of Services Computer Software industries being in the service sector where human resources are critical to their success. The level of quality of services provided by the HR department should be of a high quality so as to attract and retain qualified and competent persons. This implies that the administrative role is dominant than the strategic role. In order to improve the overall quality of services, increase in the efficiency and effectiveness of all. Following are the suggestions 1. The administrative efficiency of the HR function can be improved by the use of information technology. The routine administrative tasks can be computerized using information technology. Also different informations required to be maintained can be stored into a database, which can be accessed whenever required. The operational functions like recruitment, selection, training, compensation benefits and reward etc. can be effectively performed with the help of information technology. Personnel records can also be efficiently maintained and managed using information technology. Organization can also benefit by implementing a Human resource information system (HRIS). Large 341
organization can implement a enterprise resource planning (ERP) system for getting real time HR information and increase the efficiency and effectiveness of the HR function. 2. The organization can also outsource their routine administrative tasks to third party vendors and consultants. Many organizations have started outsourcing their HR tasks to cut cost and improve the quality of their HR services. Many administrative functions such as recruitment and selection, reference checking, payroll processing, training, legal compliance, transport, canteen etc. can be outsourced, thereby relieving the HR department and HR professionals from the day to day administrative burden and helping them to focus on long term strategic activities. 3. The overall efficiency of the HR function can also be improved if the line managers are involved and trained in the discharge of routine HR functions like recruitment, training, performance appraisals grievances etc. The involvement of the line manager in these functions will create a better understanding and co-operation of the line managers in the delivery of HR functions. However, care should be taken to provide adequate training to ensure that line managers have the necessary skills needed to perform these duties and that they are not overburdened by these tasks. b) Suggestions to Make HR Functions More Strategic Today when the very existence of the HR department / function is being challenged the HR function has to have a strategic focus, enabling the firm in the accomplishment of business goals and objectives. 342
The analysis of the data and the findings show that the mean score for the four different HR practices namely induction, Rewards, promotion/transfer/demotion and compensation does not differ significantly in the case of of lower and moderate turnover Computer software industries. This means all the four roles are given equal emphasis and importance. However if the HR function is to become a partner in formulation and implementation of business strategy it has to have a strategic focus. In order to focus more on the strategic role the organizations should free the HR department from the burden of routine day to day administrative and clerical work; this will free them from these routine tasks and allow them to focus on how HR can contribute to the attainment of business goals. This can be done by the use of information technology i.e. automation and computerization of the operations or by outsourcing these activities to third party vendors or consultants. The line managers can also be trained to perform many of these tasks. The environment in which today's organizations are operating is dynamic and turbulent. There are continuous changes taking place in the business environment, all of which have an impact on the organizations. The organizations have to continuously monitor the environment and adapt themselves to the changing environment. This requires fundamental cultural change within the firm. The HR professionals / department has an important role to play in this transformation and change process. They should help organizations to identify and implement the processes for change. They should help employees to let go old and adapt to a new culture and should help identify the process for managing change. Many a times the HR departments have not encouraged with regard to the change process. 343
Hence, the HR professionals should be trained in the change management and acquire competencies related to managing and implementing change. c) Suggestions for the Government The Government also plays an important role in the development of the Computer software industry. The Computer software industry has great potential for earning foreign exchange as well as creating direct as well as indirect employment. Moreover it is a non polluting industry. Hence the Government should take appropriate measures for promotion and development of the industry. The following measure should be addressed by the Government. 1) The industry is facing a shortage of trained and skilled manpower, hence the Government should set up national and state level institutions on the lines of IIM's and IIT's for training human resource development in the sector, so as to meet the demand of the industry. 2) The Government should extend the Software Technology Parks of India (STPI) Schemes as it has helped the small and medium Computer software industries. It may be extended for another 5 years, so as to face the turbulent environment and prepare them to for the competition confidently. 3) It is suggested that the policy and concessions provided by the Government to Computer software industries be extended for some more years, taking into consideration the pressures on the Computer software industries in wake of the appreciation of the dollar and the recession in the U.S. economy. 344
4) The power scenario in the state should be improved by planning and setting up power generation units with more installed capacity for uninterrupted power supply which is very much necessary for the growth of the industry. 5) There have been instances of theft of data and other sensitive information by the employees of the Computer software industries. The Government should set up a institute for data security to provide training in data security as well as strict implementation of the information technology act. d) Other Suggestions 1) More women employees are to be attracted. Because at present women employees are less in the Computer software industries. 2) In Computer software industries majority have better HR policies and practices; but all of these are in the high turnover or moderate turnover group of industries. Therefore it is suggested to the low turnover group of Computer software industries to improve the efficiency and scope of HR practices. 3) There should be HRD climate in all Computer Software Industries. Therefore particularly low turnover as well as moderate turnover Computer software industries have to widen the scope of their HRD policies and practices. 4) Role analysis of employees should be conducted by all Computer software industries. 5) Human resource planning is crucial in Computer software industries. Therefore HR planning process should cover all the circumstances. 345
6) All Computer software industries must have clear recruitment policy. 7) All Computer software industries must have a clear criterion of selection of employees. 8) Online election process relating to presentation, interview reference checking etc should be introduced by all. 9) Campus selection should be further strengthened and to be extended to rural area education institutions; so that talented persons can be taped. 10) Recruitment process should be carried by functional managers in consultation with the HR department in all industries. So that highly talented candidates can be recruited. 11) Assessment of training and development needs should be undertaken by all the computer software industries regularly. 12) In all computer software industries training should flow in the direction to train the employees technically on new developments and as well as to improve their communication, personality etc. 13) All Computer software industries are suggested to encouraging Employee participation in Management. 14) Board room representation should be given to employees by all Computer software industries. 15) It is suggested to conduct performance appraisal at least twice in a year. 16) It is suggested to conduct compensation survey by all Computer software industries. 346
17) There should be consensus among Computer software industries regarding the factors to be considered in determining compensation policy. Both performance appraisal and compensation survey result should be the basis for determining the compensation policy. 18) Canteen facilities, transportation, maternity, bonus, leave travel concession, education loan, leave encashment, gratuity, gifts, and other benefits should be given by all Computer software industries. 19) Employee s stock option plan (ESOP) to be introduced by all. 20) All Computer software industries must have grievance redressal system. 21) All types of grievances of the employees should be attended. 22) Low turnover industries are particularly not doing well in respect of HRD policies and practices. Therefore they are advised to improve HRD climate in their firm. 5.3 CONCLUSION: The role of human resources in management gaining sustained competitive advantage and has been proved empirically by numerous studies. In the current study we empirically arrive at conclusion that, there is a clear HRD climate in software industries and majority have most effective policies and practices in force. From the Computer software industry study we can summaries that, the Software sector's contribution to the country's GDP has been steadily increasing and has reached more than fifty percent. The service sector and more so the information technology sector is heavily people driven and hence requires proper development of its human resources. 347
The present study in this regard attempts to understand the dynamics of human resource development and the role of human resource function in the Computer software industries. The results of the study show that the current levels of services provided by the HR department were found to be of a moderate level. It also revealed that high turnover Computer software industries have much better HR policies and practices compared moderate and low turnover Computer software industries. Further the HRD climate is good in moderate turnover Computer software industries Compared to low turnover units. The test of hypothesis has clearly proved this. So the conclusion is more the turnover better is the HRD policies and practices. Organizations and HR department can thus formulate appropriate plans, policies, programmes and strategies to make the HR function more strategic and improve the quality of services provided by the HR department. It will also be of great help for organization to align and involve the HR function in the process of strategy formulation and implementation. The Software industries contribution to the country's human resources has been remarkable. The number of workers in the Computer Software industries only in Karnataka state is found steadily increasing and has crossed more than 1 million. The service sector and more so the Computer software sector is heavily people driven and hence requires proper management of its human resources. The present study in this regard attempts to understand the dynamics of human resource management and the role of human resource function in the Computer software industries. 348
From this we conclude that the HRD practices like role analysis, HR planning, recruitment, selection, induction. Appraisal, training and development, career planning and development, performance based incentives, promotion and transfer, grievance handling, employee involvement in decision making etc. effectively exist in high turnover industries and goof in moderate turnover sized units; but low turnover firms have to improve their performance. The testing of hypothesis set in the current study to test whether there is any significant difference exists among the software companies based on their turnover. The test of the hypothesis clearly indicated that there is a significant difference between low turnover and moderate and high turnover Computer software companies as well as between moderate and high turnover Computer software companies in Karnataka with regard to human resource development policies and practices. High turnover computer software industries are better placed in all respects. As the employee size increases the companies tend to adopt newer and newer HR policies has been clear from the study. The results of the study show that the current levels of services provided by the HR department were found to be of a moderate level. A comparative study of quality of HR service between and across different sectors could be an area for further research. 349