Human Resource Challenges and Practices in IT Industry

Topics: Human resource management, Human resources, Management Pages: 9 (2757 words) Published: November 24, 2012
Proceedings of the 5th National Conference; INDIACom-2011 Computing For Nation Development, March 10 – 11, 2011 Bharati Vidyapeeth‟s Institute of Computer Applications and Management, New Delhi

Human Resource Challenges & Practices in IT Industry
Rakesh S. Patil1, Varsha Patil2 and Pratibha Waje 3 1 Head and 3Lecturer 1,3 Sir Visvesvaraya Institute of Technology, Chincholi (Sinner) Nashik-422 101 (MS) 2 SNG Institute of Management & Technology, Rajgurunagar, Pune (MS) 1 and ABSTRACT The need of organizations for people and people for organizations will be more difficult to satisfy in the today’s competitive business environment. Organization’s competitive advantage could be generated from human resources (HR) and organization performance is influenced by a set of effective HRM practices. Software is a wealth and job creating industry, which has in just a few years, grown to US $ 1 trillion, employing millions of professionals worldwide. The Indian software industry has burgeoned, showing a nearly 50% compounded annual growth rate over the recent years. Being a knowledge-based industry, a high intellectual capital lends competitive advantage to a firm. With a global explosion in market-opportunities in the IT sector, the shortage of manpower both in numbers and skills is a prime challenge for HR professionals. The related issues are varied indeed: recruitment of world-class workforce and their retention, compensation and career planning, technological obsolescence and employee turnover. This paper explains the HR challenges and practices in software Industries. KEYWORDS HRM, IT,HR Strategy, Services 1. INTRODUCTION The economy has transitioned to what some call „The Age of Information‟- an economy in which gross domestic product is increasingly dominated by services. Services permeate every aspect of our lives. We use transportation services; restaurant services; hotels; electricity and telephones; postal, courier and maintenance services; services of hairdressers; services of public relations and advertising firms; lawyers; physicians; dentists; stockbrokers and insurance agents; movie theatres; and swimming pools .When we do buy goods, such as new car or a washing machine, we often still rely on services to keep them running and repair them when they break down. Services allow us to budget our time as well as our money. “The twentieth century was the age of machine; the twenty-first century will be the age of people” Buzzwords like globalization, empowerment, cross functional teams, downsizing, learning organizations and knowledge workers are changing the way of life of managers and the way they manage people. 2. STRATEGIES & POLICIES OF SOFTWARE INDUSTRIES: 1. Motivation & Retention of Employees Retention and motivation of personnel are major HR concerns today. People a Gartner group company specializing in management of human capital in IT organizations has observed that the average tenure for an IT professional is less than three years. Further, the use of new technologies, the support of learning and training, and a challenging environment ranked higher than competitive pay structures as effective retention practices. Our own recent survey of 1028 software professionals from 14 Indian software companies, showed that while the professional gave importance to personal and cultural job-fit, HR managers believed that the key to retention was salary and career satisfaction. Money was a prime motivator for 'starters', but for those into their third or fourth jobs, their value-addition to the organization was more important. Monetarily, offering 'the best salaries in industry' is the minimum every company is doing, apart from performancebased bonuses, long-service awards, and stock options. Many organizations frequently conduct employee satisfaction and organization climate surveys, and are setting up Manpower Allocation Cells (MAC) to assign 'the right project to the right...
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