JMRD Journal of Management Research and and Development (JMRD), ISSN 2248 937X (Print) ISSN 2248 9390(Online), ISSN 2248 Volume 937X (Print) 1, Number 1, January - December (2011) ISSN 2248 9390(Online), Volume 1, Number 1 January - December (2011), pp. 47-51 PRJ PUBLICATION PRJ Publication, http://www.prjpublication.com/jmrd.asp HUMAN CAPITAL MANAGEMENT IS THE KEY FACTOR FOR THE SUCCESS OF IT INDUSTRY ABSTRACT 1 Saranya R and 2 Muthumani S 1 Research Scholar, Sathyabama University, Chennai. 2 Research Guide, Sathyabama University, Chennai. email-id:saranyajagadeeswaran@gmail.com Human Capital is increasingly recognised as a key competitive advantage for companies, as well as a key indicator of a company s success. There is a growing body of evidence that the quality of Human Capital Management is an important factor in a business's competitive advantage, and correlated with competitive performance. Companies need to manage Human Capital through all the phases of an employee s work life - from recruitment to development to retention. Human Capital Management involves getting the right people, with the right skills, in the right position, at the right time, rewarding them with the right incentives to perform the right function in the right environment, to most effectively perform the work of the organization. It also involves training/developing the capital, improving their output/productivity. KEYWORDS : Human Capital Management, Human Asset. INTRODUCTION A business strategy that links the competencies, motivations and satisfactions of its employees directly with drivers of value for customers, which in turn drives profitability for the enterprise. Human Capital decisions are guided by data-driven, results-oriented planning and accountability systems. The keys to a successful HCM strategy are process efficiencies, effective use of information technology and business metrics. Human Capital Management is a yet another important aspects with perspective to IT industries. It is must to identify the prospect employees who are highly talented towards their work areas. So measuring the capability of employees will be possible through talent management and also we can retain them. METHODOLOGY Research is an art of scientific investigation. The data collection pertaining to the study involves on the basis of primary data and secondary data. In this study the samples were drawn using stratified random sample method. The estimated total sample size is 75, out of which 61 were collected back and 50 were useful for the study. The respondents were the employees working in IT industries in Chennai City. The study was carried out with the objectives of 47
evaluating the effectiveness of Human Capital Management in the organisation and to increase the value of employees. Mainly it also aims to evaluate the impact of training and development of the employees to improve their level of productivity. RESULTS AND DISCUSSION After the data collected the data are compiled by using the appropriate statistical applications. The results are shown in the form of tables and interpretations. Table 1. Table showing that the level of motivation of employees towards their Job. S.NO OPTIONS NO OF RESPONDENTS PERCENTAGE 1 Strongly 0 0 Disagree 2 Disagree 5 10 3 Undecided 5 10 4 Agree 28 56 5 Strongly Agree 12 24 Total 50 100 INFERENCE: It is clearly understood that most of the employees agree that the level of motivation of employees towards their job is high. Table 2 Table showing that the level of dedication of employees towards their Job. S.NO OPTIONS NO.OF PERCENTAGE RESPONDENTS 1 Strongly Disagree 0 0 2 Disagree 5 10 3 Undecided 5 10 4 Agree 28 56 5 Strongly Agree 12 24 Total 50 100 INFERENCE: It is clearly understood that majority of the employees are highly dedicated towards their Job areas. 48
RANKING METHOD Table 3 Table showing that the performance level of employees through their training OBSERVED COUNT OPINIONS EMPLOYEE S ARE WELL QUALIFIED RECEIVE APPROPRIATE TRAINING TRAINING LEVEL IS HIGH 1 2 3 4 5 TOTAL 0 5 2 30 13 50 0 3 6 28 13 50 0 4 5 25 16 50 EDUCATION NEEDS 0 1 2 16 31 50 WEIGHTED AVERAGE TABLE WEIGHTS W X 1 WX 1 X 2 WX 2 X 3 WX 3 X 4 WX 4 5 13 65 13 65 16 80 31 155 4 30 120 28 112 25 100 16 64 3 2 6 6 18 5 6 2 6 2 5 10 3 6 4 8 1 2 1 0 0 0 0 0 0 0 0 TOTAL 50 201 50 201 50 194 50 227 CW 4.02 4.02 3.88 4.54 Rank 3 4 2 1 49
INFERENCE: Education needs is ranked as 1, level of training as rank 2, Qualification of employees as rank 4 for appropriate training received by the employees. Table 4 : Table indicating the level of Human Capital Management OBSERVED COUNT OPINIONS 1 2 3 4 5 TOTAL HIRING PEOPLE CREATIVITY & INNOVATION EMPLOYEES ATTITUDE & INTELLIGENCE SOLVE COMPLEX PROBLEMS EMPLOYEE S SKILLS & KNOWLEDGE 0 1 10 33 6 50 0 11 5 36 7 50 0 1 6 32 11 50 0 2 6 34 8 50 0 1 6 30 13 50 SUGGESTIONS Employers in the organization are happy and satisfied with organization s support for continuing their education needs. Training received by the employee should be based upon their needs and the level of motivation should be more in order to increase employees dedication towards organization and to attain the organization s goals. Organization value alignment should be developed according to the desires of employees. High morale should be maintained which directly leads to high productivity in the organization. Employees information sharing with superiors, subordinates and peers should be increased. Organisation should increase the value of employee by motivation, high pay, training and development programs so that it reduces the retention level of employees. 50
CONCLUSION The study about the human capital management will have an impact towards identifying the areas in which the management should be concentrated. From the overall study on the human capital management, it is understood that majority of the respondents are expecting appropriate training, good salary should be given to employees and company should focus on hiring most talented people. Most of the respondents are satisfied with the team work. So the organization should ensure that adopting proper strategies and policies towards concentrating on the views of the employees will help the organization to achieve the prospective goals as well as it improves the level of intelligence of the employees wherein which restraint the disputes and thereupon the employees will have congenial relationship with all the people. REFERENCES 1. Angela Baron &Michael Armstrong (April 2007). Human Capital Management : achieving added value through people, Kogan Page Publishers. 2. John F.Tomer The Human Firm:A Socio-economic analysis of its behaviour and Potential in a new economic 3. Ronald J.Burke,Cary L.Cooper Reinventing Human Resource Management Challenges and New Directions. 4. Patrick M,Wright & Gary C.MCMahan Exploring HUMAN Capital ; putting human back into Strategic Human Resource Management Volume 21, Issue 2, pages 93-104 April2011. 5. Becker G.S (2002) The Age of Human Capital Education in the Twenty-First Century. 6. Wright P & Snell S(1998) Towards a Unifying Framework for Exploring fit and flexilibility in Strategic Human Resource Management - Academy of Management Review 23, Page756-772. 51