A Study on Role of Competencies in HRM in IT Industry with Special Reference to Pune District
Exploring the Impact of IT Competencies on HRM Practices in the IT Industry: A Study in Pune District
by Dr. Prasad Suresh Bhanage*,
- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540
Volume 16, Issue No. 9, Jun 2019, Pages 1605 - 1611 (7)
Published by: Ignited Minds Journals
ABSTRACT
The purpose is to understand the function of IT competence as an independent variable in activating Human Resources Management Practices (HRM practices) as a dependent dimension variable (IT usages, IT knowledge and IT operation) (HRM practices) (Training and Development, Recruitment, Job Design, and Performance appraisal). Based on this, two basic hypotheses are formulated to identify correlations and linkages between the independent and dependent variables. The connection of IT competence with HRM practices within the dimensions is substantial and has an influence. In addition, the Informatics and Communication Public Company in Pune is the scope and population of this investigation. To analyze the correlations between variables, a quantitative design technique was used and the researcher used the descriptive-analytical technique. A number of workers and management (responder) were provided with the questionnaire, they have been randomly picked and 76 respondents included. The Statistical Program (SPSS) has been used for the analysis of the data, using statistical and descriptive methods such as mean, variation coefficient, and default variance, to analyze and describe correlation hypothesis data and to test the impact hypothesis by using a simple linear regression coefficient. The main outcomes of this study showed that the association between HRM practices is linked to IT skills, and hence there is an efficient connection of research variables.
KEYWORD
competencies, HRM, IT industry, IT competence, human resources management practices, IT usages, IT knowledge, IT operation, training and development, recruitment, job design, performance appraisal
INTRODUCTION
The main driving force for contemporary organizations is people. The contribution of people to achievement is recognized as human resources in the HR language. Competition and performance define the organizing environment, thereby rendering the management of people superfluous by conventional human resources approaches. The establishment of new types of competitive benefit has thus become a primary priority for organizations. The knowledge workers contributing to the organization, in the form of human capital, becomes increasingly complicated in the modern knowledge-based sector. The hunt for innovative forms of competitive advantage for enterprises is seen in the name of individual competences and creates value for the management of human resources. HRMs have shifted from the measurement of individual productivity among workers to the strategic management of human resources, with an emphasis on competence development, human learning management, knowledge management, and learning organizations. For creative organizations, strategic competency management is increasingly crucial and may be vital for preserving strategic benefit. Increasing Globalization involves more active and fierce competition but also gives the opportunity to increase the organization's competency potential by using skills from many geographical places in the global workforce. Therefore, strategic skill management amongst managers should be given great priority. For over a decade the management of human resources has sought to be a commercial partner for the administration. The new function was described as "the right hand for the execution of strategy" by Fulmer (1990). Galbraith (1992) suggested that the function must be "replaced" such that one repositioned an enterprise in order to make it more competitive. Galbraith believes that a collection of enterprises is more valuable as a business group because of its integrative capacity (in leveraging key talent, for example). HRM and corporate rhetoric alike highlight a strategic requirement for business-oriented HR contributions. However, strategy and practice are far away.
IMPORTANCE OF HRM
The HRM role in organizations, which is recognized as important to link the HRM strategy and business strategy, has acquired growing strategic significance. Effective HRM is essential to be able to satisfy market requirements at all times with skilled people. Competency fulfill present and future demands. The HRM function in organizations, the need of linking HRM strategy and business strategy has acquired greater strategic relevance and is widely recognized. Effective HRM is necessary in order to satisfy market requirements at all times with well-qualified staff. Competency management is an essential aspect of HRM practice, where competences that provide the business with the proper mix of talents to satisfy current and future requirements are generated. In addition, the organization's fundamental competences should give guidance for the competence management process to enhance sustainable competitiveness. A competence-based organization, rather than concentrating on job descriptions and tasks, emphasize the description, encouragement and development of the specific skills of the person. Organizations that wish to create long-term jobs need to concentrate their staff on career development and long-term objectives. It is no longer a novel notion that human resources may become an organization's competitive advantage. It is widely understood that companies may build a competitive advantage from their management techniques and people resources. Efficient management of human resources will create a greater ability to recruit and hold qualified and high-performance staff as well as multiple advantages via sufficient and qualified staff. Some examples include increased profitability, reduced rotation, greater product quality, reduced production costs and a rapid acceptance and execution of the corporate plan. Corporate resources provide a sustainable competitive advantage if they are invaluable, uncommon, unfavorable and have no replacement (Barney, 1991). The first four criteria provide a competitive edge, but if the Company wishes to get this benefit over its competitors, then these resources must be arranged to utilize (Ulrich and Lake, 1990). "The management of personnel is crucial; their knowledge and skills are such that they may achieve a competitive advantage for the longer term."
The Competency Paradigm in the Indian IT Industry
In the Indian economy, Indian IT sector has become more and more important, with a spectacular role in generating jobs. The Indian IT sector has been widely acknowledged for its performance in terms of service and business strategies. The principal strength of this accomplishment was the inherent quality of the software development teams working in Indian IT companies. Indian IT companies are considered to be vital to Indian IT companies' success with its team-orientation, delivery style, procedures and client focus. The industry is not, however, free from inconvenience. The following are 1. Currently, many IT businesses have no comprehensive competence mapping understanding. 2. Organizations have enormous challenges in acquiring appropriate qualified individuals that can assist their organization. 3. Building and sustaining dedicated and a skilled personnel has become a Hercules in today's highly competitive and globalized marketplace. 4. It lacks well-established methods for assessing workers' qualifications and distinguishing competences. 5. The success elements in employment and labor functions within the firm vary greatly.
LITERATURE REVIEW
Kumari Anitha and Sita V (2010) The role of employee development skills in the Indian IT and Pharmaceutical sectors has been experimentally examined. They observed that the skills of workers had an influence on corporate success. The research also concluded that the development and use of a skill-based method is vital to successful management of human resources. Sharma Ritu and TewariRuchi (2013) The link between skills and work performance in companies derived, among others, from IT sector was investigated. To that end, they provided a pool of skills based on several worldwide research. These skills were submitted to a panel of experts and practitioners from five different fields, including the IT sector. The research revealed that certain of the important skills – given the top classification – should be mandatory for the entry level managers so as to guarantee efficient organizational performance. Ujval Rajadhyaksha (2005) A model of techno-management capabilities was evaluated based on data collected during the consultation evaluation exercise of more than 250 managers at one of the leading Indian automobile manufacturing enterprises. A total of 24 competence items, of which 13 were technical and the remaining 11 were managers, were selected on the basis of talks with top managers in the organization. The expert panel evaluated CEOs for the aforementioned competences using the mix of written examinations, group discussions and extensive interviews.
connection between the IT competences in the undertaking investigated and the characteristics of HRM practices. 2. Determine the amount of top managerial interest in HRM and the usage of IT in a Pune research company. 3. Test the nature of correlations and effect interactions in the research business between key research factors.
METHODOLOGY
The research population was represented by the Pune Company for Information Technology and Communication. The sample of study was randomly chosen and covered the department of human resources and other areas of business, including internet, computer and communication units. According to a sample of D. Morgan, there were 76 replies from 93 respondents. Seventy-six questionnaires were circulated and seventy-five were found. The analytical descriptive technique has been selected. In order to understand the links between the independent variable and its dimensions and the dependent variable, this methodology is utilized to gather and analyze the data.
DATA ANALYSIS AND RESULTS
The data were reviewed and analyzed to analyze the sample replies and to examine the hypotheses of the research study linkages between the research variables inside the firm being investigated.
Description of the study sample
The first portion of the questionnaire comprised the respondent's personal information Table (1) relates to the demographic character-related outcomes, in all, the number of men (54) was 72%, and the number of girls (21) reached 28%. For the age range 36-45 the greatest proportion with a ratio of (0.36). Educational levels were 3% of doctoral, 7% of masters, 10% of higher degrees, 59% of bachelor's and 16% of graduates. 51% of the 10-15 years‘ experience was the highest.
Table 1: Demographic features of interviewees
parts by diagnosis of the reality in their dimension of IT skills and the diagnosis of the reality of HRM practices in their dimensions as shown in Table 2 and 3.
Diagnose and analysis the Dimensions of IT competency
The IT expertise is three-dimensional (IT operations, IT knowledge, IT usage). 16 objects were measured based on the scale by the three dimensions (Tippins, M., & Sohi, R., 2003). The findings were based on the significance of the sample replies. It is obvious that the IT skills of the studied organization are being dealt with. The proportion was (77%), and the average (3,86%), which is more than the supposed average of the size (3). This shows that IT's involvement in corporate success is interesting and effective. As well as the measurement of the variation coefficient for each dimension of IT competence, the measurement first reveals IT application; second, IT knowledge; and third, IT operations do not get management attention compared to the other dimensions. The examination of each IT skill dimension as described in the table (2):
Table 2: Diagnose and analysis the Dimensions of IT competency
• IT operations The IT operations component was evaluated using six parameters, the first of which was the most significant (―our company has the ability to collect and analyse information about the customers through the computer-based systems‖). The second element to consider is (―the company is used the computer-based systems to access market information from external database‘s). The third item to consider is (―our company emphasizes the procedures by which data and information are collected based on Internet sources‖). The fourth item to consider is (―our company use computer-based systems to analyse customer data‖). The sixth item to consider is (―our company relies on the computer-based systems to obtain, store and process customers information‖). The sixth consideration is (―the company frequently use decision support systems when it comes to customer information management‖). is interested in the availability of jobs with a variety of performance requirements, as evidenced by the fact that 78 percent of respondents were interested. The standard deviation, which measures the degree of dispersion of this variable, was (0.365), showing that the study sample's responses in this region were dispersed very little. • IT Knowledge The first one (―the firm has a technical support staff that has expertise in computer systems‖). This dimension was assessed by five elements. The second point (―our company has a high degree of computer-based technical expertise‖). Item three (―the company is knowledgeable with new computer-based innovations‖). The 4th (―the company has the knowledge to the development and maintaining computer-based communications links with customers‖). Item five (―the company has human resources that possess the knowledge, skills and can able to deal with global developments‖). The five items were measured by (3.88), a satisfactory mean relative to the hypothesis. The 77%, the standard deviation for this variable (0,365), shows a small dispersion of the research sample responses in this region. • IT usage Five objects were measured, the first item (―our company employs a manager whose main functions include our IT department‖). The second point (―our company employs the employees on the basis of possessing experience in our IT management‖). Item three (―our company members are connected to an internal and external computer network‖). Item four (―the company can create a software application whenever needed‖). The 5th (―our company allocates a large amount of money to new IT hardware and software and how to use it‖). The five elements reached a mean of three,80 and are by a substantial amount greater than the hypothesis. This demonstrates that the employment of researchers is mostly focused on the expertise and usage of IT. The 76%, the standard deviation of this variable (0.353), indicated that the replies of the study sample in this field were tiny.
Diagnose and analysis the Dimensions of HRM practices
Four dimensions of HRM were measured (performance appraisal, training programs, recruitment, and job design). These practices were assessed by (28) items dispersed by using the scale of Hellrigel, Slocum & Woodman, 2001, to the sub-dimensions of the practice of HRM. Table (3) demonstrates that medium attention from the management of the firm under investigation is paid to the same as the average (3.34), greater than the hypothetical average of three, but smaller. This shows that the company's attention to the function of HRM practices is minimal. Moreover, these practices have proven that recruiting is a first arrangement, training and development is the first arrangement for each dimension of the HRM practice and third arrangement is a performance assessment and fourth arrangement is the work design. This shows that the firm investigated did not provide sufficient attention to the work's design. The characteristics of HRM practices chosen in accordance with the independent variable are analyzed below:
Table 3: Describe and analysis the Dimensions of HRM practices
• Performance appraisal Seven elements examined the dependent variable, the first item ―management relies on the individual's personal features as significant criterion for measuring their performances‖. The second point ―the management of the company applies the important criteria that measure the performance of the employed individuals‖. The 3rd ―the management of the company depends on the opinion of the direct supervisor in appraisal performance of employees‖. Item Fifth ―the modern assessment system uses the latest technology‖. The sixth point ―promotions and training testing are based on evaluation information‖. The eighth ―the assessment methodology for the firm is focused on development and expansion‖. The 8th ―performance is measured based on objectives and quantitative results‖. • Recruitment Management develops programs and incentives to successfully relocate personnel,(3) management focuses on the recruitment and testing of highly qualified and diversified skills to increase its services, (4) the company relies upon qualified services. This variable is measured by six elements, When the firm anticipates a shortage of competence inside it to continue to enhance its activities, the firm depends on skilled employees from outside Canada (5) recruiting
promote employee morality and get work happiness in order to boost productivity. The mean of the six elements is 3,31, which is higher than the hypothesis (0.31), This indicates that among management of companies that investigate the identification and recruitment of the proper people, the figure was 66%. This variable standard deviation was (0.308), but the recruiting arrangement initially occurred, however management did not provide the necessary attention. • Training programs This variable is measured by the following eight points: (1) the company is responsible for nominating employees for training courses that contribute to their preparation and development; (2) the company trains new employees on the nature of work, before assigning their employees to work; The average of eight things is 3,00, which is the same as the hypothesis. This level of replies explains why the firm investigated doesn't pay much attention to this procedure and does not take into consideration the contents of the individual training program. The selection of workers for training courses within and outside Canada without reference to specific criteria in this respect consequently constitutes the proportion achieved by the majority of respondents, and the involvement of HR officers and managers is restricted (60 percent). The standard deviation of this variable was (0.278) shows the consistency of the study sample responses, the absence of dispersion of these responses to most paragraphs, as well as their recognition of the relevance of training programs at a certain period in their career development. • Job Design (1) Management of the firm aims to give the occupant a chance to be independent and to perform freely, and (2) management aimed so that the individual feel that they belong to the job and have an effect on each other to achieve good results, (3) management is responsible for ensuring that people are able to work effectively. This variable was measured by seven items: (6] the corporation uses the employee mobility strategy to enhance expertise and efficiency across occupations in several directions; (7) the function of the direct officer in supplying the employee with information that enables the career development process; The seven factors were averaged (3.37) by the amount of (0.37) which shows that the management trend for the firm and the person involved in process design was a medium one, with a percentage of 67%. This variable's standard deviation was (0.313) which imply that the research sample replies are low in this region.
Table (3) indicates the association of IT skill characteristics to HRM practices as a whole. The total link between them is really substantial. t (2.64) is more than the table value below the meaning level (0.05), and the crucial grade of (1.68). The value of the correlation (0,85) indicates the correctness of the first important hypothesis, a high positive correlation (there is a significant relationship between the IT competency and HRM practices in terms of dimensions). The IT skills which are well employed and employed in all activities and in accordance with all three fundamental dimensions will lead to the efficient role of HRM practices being increased. The initial hypothesis hypotheses are tested appropriately:
Table 4: Relations between Total IT competence dimensions and the HRM practices
Value (t) Tabular under significance level (0.05), Freedom degree = (1.68).
Analyze the influence of IT competence on HRM practices and its aspects
Table 5 presents the findings of the regression analyzes in HRM practices between IT expertise in general. There is a strong indication of IT skills in HRM practice in general with their aspects. The values computed for (F) were (7.17) which are higher than the table value of (05) (3.95). By observing the beta coefficient (da) of (0.465), the one-unit change in IT is followed by the (0.46) change in human resource management practices and this demonstrates the relevance of IT to enhance the efficiency of HRM activities. The R2 value (0,691) is a high percentage indicator indicating, according to the employee understanding of the relevance of the sample of study IT skills and of their impact on managerial practices the value (0.691) of total variations in HRM practices is calculated. The rest (0.226) reflects additional unknown factors. The remaining variables are: The value of the regression curve (α), which shows the value of the variable, if it is a 0, varies from 0, which demonstrates that there is a good link between IT skills and the HRM practices. Therefore, in the investigated organization is a significant deal of interest in the management of human resources (8.028). This data demonstrates that the second primary expressed as follows (Y= 8.028+ 0.465X).
Table 5: Analyze the impact of IT competence on HRM practices and its dimensions
Table below level (0.05), degree of freedom Equals meaning of value (f) (3.95). These are the test hypotheses derived from the second key hypothesis: a. Table 5 showed that there was an important influence of IT usage on HRM practices where the estimated value (F) of (9.06) was bigger than the tabular value of (0.05) and freedom was more important than the tabular value of the IT. a. (3.95). By observing the beta coefficient (dé) of (0.494), it indicates that a change in one unit of usage of IT is associated by a change in HRM practice (0.494). This highlights how important IT is to make HRM procedures more successful. The (R2), a high proportion, was (0.750). Therefore, the value of (d) in the examined organization is of high relevance to human resources management activity (7.559). These findings supported the validity and confirmation of the second principal hypothesis the first subhypothesis (there is a great significance of IT usage on HRM practices). It is possible to express the regression equation as follows (Y=7,559+0,494). b. Table 5 showed a substantial IT influence on HRM practices, when the computed value (F) of (4.54) is larger than its tabular value at a significant level (0.05) and the level of freedom is displayed in the results analysis. b. (3.95). From observation of the beta (peti) coefficient, which shows a shift in HRM practice in one unit at the IT operation (5.545). This demonstrates the necessity of IT to improve the efficiency of HRM procedures. The (R2) score was (5.444), a high proportion. This suggests that HRM procedures at the research firm are of major importance in the value of (so) (4.555). These findings have demonstrated that the second hypothesis stems from the second hypothesis is valid and validated (there is a great significance of IT operation on HRM practices). This may be expressed as the regression equation (Y=4.555+5.545). c. Table 5 showed the analyzed findings that IT knowledge significantly affected HRM higher than the table value (0.05). (3.95). By observing the beta coefficient (d) of (5.455), the change of the IT knowledge unit is followed by the change in HRM practices (5.455). This demonstrates the necessity of IT know-how to make HRM procedures more successful. The (R2) value was a high percentage (5,454). This suggests that HRM procedures at the research firm are of major importance in the value of (so) (4.544). These findings show that the third hypothesis derives from the second main hypothesis was valid and validated (there is a great significance of IT knowledge on HRM practices). The regression equation is as follows (Y= 4,544+ 5,455).
CONCLUSION
In the fields of IT, and human resources as a key aspect of most worldwide corporations and organizations, there has recently been a worldwide trend. The research thus focused on a range of findings, e.g. that the usage of IT is important for the improvement of workforce performance. In addition, owing to the availability of excellent IT competence aspects that derive from the firm management's interest, the work held by the workers of the examined organization is adequate. Through continued usage and modernization of hardware and software, the firm responds to the change in variables that is related with the efficiency and usage of technology. In terms of relevance, the recruitment variable is organized first and shows that the job creation of the individual with skilled, excellence, ability and experience is provided in the organization. The study sample answers demonstrated a medium trend for the management of the organization investigated towards HRM practices. Some activities under various titles are undertaken as one of the functions of the Human Resources Department. The corporation is serious about training programs since it depends on performance technologies. Further, the results from the study showed the disparity of training options in the undertaking being examined. The performance evaluation of the study sample contributes to the definition of the objectives and the skills and abilities of the personnel. This is a positive signal that workers are aware and that performance evaluation is important to attain future targets. Finally, the personnel of the firm questioned recognize that IT effectiveness may play an essential part in activating HRM practices by fostering excellent performance via technology and human resources that are distinctive of the current era.
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Dr. Prasad Suresh Bhanage*
Director, Madanbhai Sura Institute of Business Management, Khed, Ratnagiri