Hr Organizations in Indian It Companies

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  • Topic: Strategic management, Management, Human resources
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| |2013 | | |II Semester, MBA (P.T) | | | | | |Kanu Aravindakshan |

|HR ORGANIZATION IN INDIAN IT COMPANIES | |This document explores the HR organizations across the Indian IT landscape. It gives a perspective on how different organizations evolved| |over time and how each structure solved some of the key issues plaguing IT industry |

Introduction

The Indian IT industry revenue consisting of software and services for the FY 2012 is expected to cross USD 100 billion. The share of Indian IT industry as a proportion of national gross domestic product has increased from 1.2 per cent in 1998 to an estimated 6.4 per cent in FY 2011. Its share of total Indian exports has increased from about 4% to 26% in FY 2011. It is estimated that industry provides employment to about 10 million people in direct, indirect and induced employment. This relatively young and flourishing industry has presented some unique challenges within the Indian context. Major challenges include managing human resources in globally distributed team, talent shortage, lack of well-developed HR systems and processes, high employee turnover, lack of work balance and so forth. It is in this context, the HR organizations have a great relevance in solving some of the aforementioned issues.

HR organization – Historical Perspective

For most part of IT industry post liberalization and early IT industry borrowed principles and structure from the ‘personnel management’ and industrial labour relations policies. Clearly, the growth in IT industry did not translate into a balanced growth and transformation in HR policies and well established HR organizations.

In the late 90’s and early 2000, HR organization typically revolved around performance management, reward systems, training and recruitment. This support function and cast obviously did not support the changing dynamics of the organization. While the IT industry itself has moved into offshoring services, HR organizations remained mired in the traditional matrix organization. It did not see itself has a growth partner in the new bludgeoning service industry. The service industry was a new phenomenon and then HR managers did not have the right skills in comprehending the complexity involving in managing the new young age techie. Another problem around that period was that most of the senior leadership team came from non-IT background and hence was not able to appreciate the HR needs of the young IT industry. HR organization itself was meted out a ‘step child’ treatment within the organization. No one really understood the need for an HR system, when they thought technology could replace most of the HR managers. Fortunately, during this period, leaders and key employees of the organization also came into contact with several world leader organizations in the IT industry and the HR policies and administration around it. Far from being perfect, these organizations however had transformed its HR organizations from an administration into a function that support senior leadership team in terms of productivity and employee satisfaction. This had direct bearing on the IT industry as some of the major challenges were related to productivity of the skilled resources.

The new structure evolved in this period and context, highlight of which was the supportive cast to the senior leadership team. The HR head reported to either COO or CEO and that clearly sent signals to the whole organizations that HR systems is here to stay with increased importance.

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Global Delivery model & implications on HR organization

As the IT industry matured, new...
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