Emerging trends of human resource management

Emerging Trends of Human Resource Management (With Special Focus on Information Technology Industry)
88 LACHOO MANAGEMENT JOURNAL, Volume 1, Number 1, July – December 2010
EMERGING TRENDS OF HUMAN RESOURCE
MANAGEMENT (WITH SPECIAL FOCUS ON
INFORMATION TECHNOLOGY INDUSTRY)
Eme rgin g Tre n d s of Hum an Re sou rc e Man age me n t (Wit h Sp e c ia l Foc u s on I n f orma t ion Te c h n ology I n dust r y)

Ms. Amrita Garg
Human Resource Executive, Teerthanker University, Moradabad
Ms. Anshika Sharma
Lecturer, Department of Management Studies, IFTM, Moradabad
Mr. Manish Ranjan Pandey
Senior Lecturer, Department of Management Studies, IFTM, Moradabad
ABSTRACT
Human resource is a relatively modern management term having been coined in the
1960s. The origins of the function arose in those organizations which introduced
'welfare management' practices and also in those that adopted the principles of
'scientific management.
Since 1990 due to liberalized government policies, Indian scenario began to change.
Human resource became one of crucial driver for development and change. As the
viewpoint of management towards its employees began to change, role and
contribution of human resource as a talent pool also become so vital that most of the
organizations started to focus their vision and mission statements on the people who
work for them.
With the boom in the technology sector in 2000, newer and newer ways of attracting,
recruiting and managing tenant in the companies also started to emerge. This paper
tries to identify various trends which came into existence as a result of technology
revolution in the country and make a comparison between pre and post liberalization
HR trends in IT industry.
Keywords: Human Resource Trends in IT industry, Online Recruitment Systems,
Human Resource in Pre and Post Liberalization Era.
GENESIS
Human Resource is a term used to describe the individuals which comprises the
workforce of an organization, although it is also applied in labor economics, for
example, business sectors or even whole nations. Human Resource is also the name of
the function within an organization charged with the overall responsibility for
implementing strategies and policies relating to the management of individuals (i.e. the
human resources). This function title is often abbreviated to the initials 'HR'.
LACHOO MANAGEMENT JOURNAL, Volume 1, Number 1, July – December 2010 89
Human resource is a relatively modern management term having been coined in the
1960s. The origins of the function arose in those organizations which introduced
'welfare management' practices and also in those that adopted the principles of
'scientific management. The use of the term, 'human resources' by organizations to
describe the workforce capacity, is available to devote to the achievement of its
strategies. In the simplest terms, the objective of an organization's human resource
management strategy is to maximize the return on investment from the organization's
human capital and minimize financial risk. Human Resources seeks to achieve this by
aligning the supply of skilled and qualified individuals, and the capabilities of the
current workforce, with the ongoing and future business plans and requirements of the
organization in order to maximize return on investment and seeks to secure the future
survival and success of the entity. In ensuring such objectives are achieved, the human
resource function purpose in this context is to implement the organization‘s human
resource requirements effectively but also pragmatically, taking account of legal,
ethical and as far as is practical in a manner which retains the support and respect of
the workforce.
The Human Resources function may set strategies and develop policies, standards,
systems and processes to implement these strategies in a whole range of areas for
which the following would be typical of a wide range of organizations.

1. Recruitment and Selection (Resourcing)
2. Organizational design and development.
3. Business transformation and change management
4. Performance, conduct and behavior management
5. Industrial and employee relations
6. Human resources (or workforce) analysis and the management of workforce
personal data
7. Compensation, rewards and Benefits management
8. Training & development (Learning management)
Implementation of such policies, processes or standards may be directly managed by
the HR function itself, or the function may indirectly supervise the implementation of
such activities by managers, other business functions or via third-party external
partner organizations.
HUMAN RESOURCE MANAGEMENT TRENDS
In organizations, it is important to determine both current and future organizational
requirements for both core employees and the contingent workforce in terms of their
skills/technical abilities, competencies, flexibility etc. The analysis requires
consideration of the internal and external factors that can have an effect on the
resourcing, development, motivation and retention of employees and other workers.
The external factors are those largely out-with the control of the organization and
include issues such as the economic climate, current and future trends of the labor
market e.g. skills, education level, government investment into industries etc. On the
other hand internal influences are broadly within the control of the organization to
predict, determine and monitor, for example the organizational culture underpinned
by management behaviors (or style), environmental climate and the approach to ethical
and corporate social responsibilities. In order to know the business environment in
which any organization operates, three major trends should be considered:
Demographics – It is the characteristics of a population/workforce, for example, age,
gender or social class. This type of trend may have an effect in relation to pension
offerings, insurance packages etc.
Diversity – It refers to the variation within the population/workplace. Changes in
society now mean that a larger proportion of organizations are made up of "babyboomers"
or older employees in comparison to thirty years ago. Advocates of
"workplace diversity" simply advocate an employee base that is a mirror reflection of
the make-up of society insofar as race, gender, sexual orientation, etc.
Skills and qualifications - As industries move from manual to more managerial
professions, so does the need for more highly skilled graduates. If the market is "tight"
(i.e. not enough staff for the jobs), employers will have to compete for employees by
offering financial rewards, community investment, etc.
HR TRENDS IN PRE-LIBERALIZATION PHASE
In 1990 due to liberalized government policies of various countries the human resource
started floating from one country to another this led to diversification of workforce and
cross culture took place as a result employees from one nation migrating to another
nation and bringing their culture with them this led to mixed organization culture so
the HR professional has to play major role in coordinating the workforce of different
culture in an organization.
Evolution of Personnel management started in 19th century at that time there was a
boom in industrialization which leads to increase in franchising and influence of trade
unions and harshness of industrial condition called for the better of industrial
condition. Second World War increased the importance of having personnel
department because of producing large war materials the ministry of labor and
national services insisted to combine both personnel department and welfare officer
work on a full time basis.
HR TRENDS IN POST-LIBERALIZATION PHASE

Corporate India has come a long way since Independence. Today Indian companies
have spread themselves across the globe and are moving to a borderless world.
Similarly post liberalization and globalization a large population of Indians have
become a part of the multinational and foreign units. In short, the Indian workforce
and the industrial climate are both continuously changing. Thus at this juncture it is
very vital to understand the changing trends of the most valuable asset of an
organization – Its people. There is constant need to develop capabilities, leverage them
to ensure the growth and success of an organization and at the same time add value to
an organization.
The key players who have served as facilitators are the Human Resource professionals
who have moved beyond their administrative role to emerge as a strategic business
partner. Their role has become very critical in providing radical solutions to
organization success. Today they no longer work in independent silos, but have
aligned themselves with the strategic goals. With the changing market trends HR today
is faced with several challenges and people management issues in this talent – short
market. Human resource professionals need to think differently today and further
experiment varied processes & methodologies benefiting the human capital and the
organization at large.
EMERGING HR TREND IN INDIA
A look at the trends in managing people in this dynamic industry reflects that
Attracting, Managing, Nurturing talent and Retaining people has emerged to be the
single most critical issue in lieu of the enormous opportunities spun off by the market.
The new avatar of talent is the knowledge professional who is innovative, business
savvy, quick on the uptake, has an instinctive ability to network, and possessing
unbridled ambition. They are propelled by an urge to experiment, scan new avenues
that can spur their creativity. The knowledge professional will gravitate to an
organization that is flexible, has strong values, a robust performance ethic and provides
challenging work on latest technology. This has led to companies proactively taking
measures on three fronts. First, companies create an organizational ambience where
talent can bloom. Second, they put in place systems that help unleash their potential
and third, they build a reward and recognition mechanism that provides value for
people.
HR TREND IN INFORMATION TECHNOLOGY INDUSTRY
Technology constantly generates unexpected consequence. The simple ability to send
information anywhere immediately, at minimal cost has so many ramifications. The
most obvious of the effects being in the reach and speed of dissemination of
information. The Human Resource trend in Information technology is discussed in this
study.
Three significant growth trends in Corporate India are now pushing Hr Manger to look
towards technology for solution. First – an explosion in CEO – Level searches and hires
by Indian companies. People like Director of Tata Sons‘ Alan Rosting, Ranbaxy CEO
Brian Tempest, and Managing Directors of Indian Hotels Raymond Bickson are
familiar examples. Second, many companies are searching for middle and entry-level
talent. Tata Consultancy plans to hire 800 people in the US this year, mostly off
campuses. Third, Indian companies are inheriting a large number of employees
through global acquisitions. For example, Tata Motors gained 1,000 global workers
through acquisition in Korea and Spain. And Dr.Reddy added 340 workers through a
Mexican acquisition in November.
In this scenario- Role of HRM in integrating employees into the organization with
speed ensuring high levels of performance becomes more critical than ever. And its is
technology in the form of HR systems that is aiding the HR department in doing this
today, keeping pace with the growing needs of Indian business.
FINDINGS AND DISCUSSION

As per the research plan, the researchers are gone through various available literatures
showcasing the trends in Human Resource Management features and practices across
the industries and found the following key trends in such practices:
1. The country which has been such a popular people resource for the IT industry the
world over, is struggling with numbers to meet its own demand. To meet the
overall software and services (domestic and export) target of $87 billion by 2008,
according to the Nasscom-McKinsey report, the country will require a minimum of
2.2 million knowledge workers for its domestic needs. This implies that the present
strength, which stands at 12,00,000 (December 2004), has to increase about twice,
not just in quantity but in quality as well.
2. According to industry estimates, majority of the demand for manpower will be in
the area of IT-enabled services. While Nasscom puts the requirement at 11,00,000,
MIT says IT-enabled services and e-business will need 12,70,000 workers by 2007.
Experts insist that since this sector does not require very highly skilled manpower,
we can easily meet this demand. "IT-enabled services is a wonderful opportunity
for India and for such services you don‘t need highly skilled professionals. You just
need smart graduates who can speak English, all you need to do is train them. For
instance, in a call center, they need to be trained on accents and customer services,"
3. Emerging concept of 4 R’s among Human Resource Managers:
Recruiting Retaining Retraining Restructuring
Signing bonus
Finders Fee
Alumni
connections
Non-techs
Students
Interns
Retention bonus
Project pay
Reduct FTE/same
pay
Telecommuting
Externs
Job sharing
Recognition
programs
Job rotation
Team
assignments
Skill inventories
Competency
development
Certification
Broad job descriptions
Flexible compensation
programs
Flexible jobs
Positive problemsolving
spirit
Source: Hr Trend in IT Industry, War talent
4. HIRING TRENDS among IT Companies in last few years:
The above chart shows that the recruitment of engineers and IT professionals in the
industry is growing at the Compound Annual Rate of 14.5% approximately. The direct
employment in the IT-ITES sector was 1.3 million people and the indirect employment

was 3 million approximately.
5. SALARY TREND also shows that Along with abundant growth opportunities, IT
sector is one of the highest paying sectors. The average increase in salary in IT
sector across the levels was around 16% and the average increase in the ITeS BPO
sector across the levels was in between 16%-18%.
6. The Indian IT services industry, which has been a forerunner in creating and
implementing innovative HR strategies, is expected to focus more on strengthening
the middle management cadre. The IT industry's challenge seems bigger as the
sector is facing an acute shortage of skilled manpower, rising income levels and the
proliferation of new job opportunities.
7. During the recovery period, many companies have adopted various advanced
technologies in their work life like human analytics, human capital management,
early warning systems and others. These technologies help increase the efficiency
level and meet the ever increasing needs in this competitive world."
8. Pankaj Shankar, global head (HR) at the technology solutions company Infogain
Corporation, says that acquisition and retention of talent will not be the only
challenge. "Apart from talent acquisition and retention, leadership development,
aligning and integrating people's performance with business goals, management of
intellectual capital and compensation management would also require attention of
HR managers in the coming year," he adds. The Indian IT services industry, which
has been a forerunner in creating and implementing innovative HR strategies, is
expected to focus more on strengthening the middle management cadre. The IT
industry's challenge seems bigger as the sector is facing an acute shortage of skilled
manpower, rising income levels and the proliferation of new job opportunities
9. Nine Major HRM Trends and Strategies to deal with global slowdown include:
(Source- HANNA HUMAN RESOURCE)
Trends Response
Transportation Support and Flexible
Scheduling
None
Telecommuting
Four-Day Work Week
Organized Carpools
Public Transportation Discount
Gas Card Reward System
Job Sharing
41.4%
37.9%
31.0%
17.2%
10.3%
6.9%
6.9%
Environmental Responsibility
Policy (Go Green)
Informal Policy implemented
No Policy with Plans to Have One in 2009
No policy with No Plan to Create One
Formal Policy Implemented
31.1%
25.0%
25.0%
17.9%
Use of Online Communities
Used in the Workforce.

Communicate with Customers
Recruit Potential Employees
Between Employees
Network With Blessing Prospects
60.0%
53.3%
53.3%
40.0%
Tasks That Will be Outsourced in 2009
Employee Assistance
Background Checks
Payroll
Compensation Administration
Outplacement
Training
Benefits Administration
78.9%
63.2%
47.4%
21.1%
15.8%
15.8%
5.3%
Percentage of Workforce Being
Downsized
No Layoffs
1-5%
6-10%
31.1%
35.7%
10.7%
11.20%
21-30%
14.3%
7.1%
Strategies to Deal With Increased
Healthcare Costs.
Health Promotion Wellness Program
Consumer Directed health Plan Designs
Defined Contribution Health Plan
Risk Factor Identification
Broader Absence Measurement Manager
92.6%
33.3%
29.6%
14.8%
11.1%
Solutions Used To Support
Retention Strategies.
Training and Development Programs
Compensation and Benefits
Recognition and Reward Program
65.4%
53.8%
50.0%

Preparation for the "Brain Drain"
Plan on dealing with the issue in 2009
Do not plan on dealing with the issue
Active Program in place to identify and
train future leaders
On-Going Recruitment Program
Solid Succession Plan
48.3%
13.9%
13.9%
10.3%
10.3%
Multiple Generations in Workforce
Baby Boomers (ages 44-62)
Generation X (ages 28-43)
Generation Y (ages 24 below)
Traditionalist (ages 63-82)
42.22%
40.19%
15.22%
6.38%
The above 9blocks are showing the 9 Human resource Trends of the year 2009 along
with responses by various respondents in various ways. These trends includespercentage
of workforce being downsized, Strategies to deal with increased healthcare
costs, solutions used to support retention strategies, preparation for the brain drain,
multiple generation for the workforce, Transportation support and flexible scheduling,
environmental responsibility policy, uses of online communication used in workforce
and tasks that will be outsourced in 2009.
10. The HR function is in for a very different year from last year and a tough one too:
HR budgets are being reduced in 43% of organizations.
40% of organizations expect to be reducing headcount.
The focus for the year ahead has changed dramatically from last year:- 2008 was a
year focused on recruitment and retention. And 2009 will be a year focused on
organizational restructuring and developing employee capability.
11. IBM said-―IBM researchers have also developed a "Skills Planning" model for
optimal allocation of skills and job roles across an organization's multiple sites, to
minimize the impact of a disaster at any one site. This model takes into account
various operational aspects, including critical workloads, skill levels, mobile
workers, multi-skilled workers, cross-training, operations in shifts, wage costs, and
multi-location communication or management overheads.‖
12. Keeping employees ‗in-the-know‘- HCL Technologies has also oriented itself in a
similar manner, focusing on communications, to keep employees ‗in-the-know‘ and
maintain transparency. According to D K Srivastava, Global Head, Corporate HR,
HCL Technologies, trust through transparency with all its stakeholders is the core
culture at HCL.
―HCL Technologies has a well-fuelled mechanism set up to enable employees to
enhance their skills; increase productivity and increase deployability. We have a
dedicated department that focuses only on training employees — the Talent
Transformation and Entrepreneurship Development team,‖ Srivastava states.
CONCLUSION
Human resource Management will be the key area of focus in 21st century as in
companies and government organization put in place strategies to cope up with the
economical crisis and recovery. The so called ―war for talent‖ is on the backburner as
the focus shifts to hiring freezes, benefits and compensation cost management, and

workforce reduction in the hardest- hit segment and as the the era of skill-based
workers has arrived but if India wants to truly move to the global arena, it has to
spruce up its workforce. Small may be beautiful, but not in the IT industry. In the
knowledge era and a skill-based economy, it has become imperative that human
resources become one of the most essential ingredients of success. The growth of IT
companies worldwide depends on its people and the intellectual capital it possesses.
‗Knowledge workers‘ has become a buzzword in today‘s IT scenario. And if we look at
the top software exporters, they have been growing phenomenally in workforce
strength. To make it big in the global software market, India needs to increase its mass
of knowledge workers. The total human resource strength of the IT industry as a whole
stands at 425,609. A company-wise break-up of this figure reveals that nearly 525
companies constituting 35% of the IT industry employ an average of 58 persons each,
750 companies constituting 50% of the industry employ an average of 275 persons each,
and 150 companies constituting 10% of the industry employ an average of 726 persons
each. At least 40 companies have more than 1,000 employees, while some very big
companies like TCS, Wipro, HCL and Infosys have staffs above 5,000 each.
As we already know that Human Resource Management of the organization deals with
the individuals putting their hard work to meet the organizations goals. Managing
people is the toughest element of any organization than land, machinery or finances.
Every human being has its own degree of preferences, likings and attitude. So, HR
managers have to take care of all these things in mind while dealing with the number
of people working in the organization.
But, emerging HR trends of Information Technology industry cannot be managed
properly by the old traditional HR techniques. As it is commonly known that man
learns by experience. 50 years of introduction of computers has provided us the areas
to be additionally addressed by the HR managers in IT sector. Indian IT industry is not
an exception.
Hence, the IT industry has been devising newer Personnel Management/ HR
techniques which specifically meet the needs of IT industry. The main reason for this is
high standards of education and professional training required for this industry.
Secondly, there is an excessive job demand for developed countries in this sector and
high wage standards. So, HR managers mainly in developing countries like India find
it very difficult to retain and recruit their manpower.
Hence, it can be concluded that Emerging HR trends of Indian It industry are quite
different from the old economy industry. India is considered one of Super Power in
Information Technology and allied fields. Majority of world leaders in IT sector are
outsourcing their requirements from Indian IT Industry and recruiting Indian IT
professionals. Hence, the Indian Government must allow the Industry to meet
international competition and desired environment in respect of Labour Laws and
financial rules must be liberalized for this Indian IT Industry. Moreover, HR managers
in Indian IT Industry must keep the sensitive nature of IT professionals and state of
greater opportunities outside in mind for devising HR policies for their organizations.
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edition
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Publishing House, Twenty Fifth edition.
4. Pareek, U and T.V.Rao, 1981, "Designing and Managing Human Resource
Systems", Oxford and IBH Publishing Co., New Delhi.
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Rao, T.V. and Pereira, D.F., Recent Experiences in HRD, New Delhi, Oxford & IBH,
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6. http://www.articlesbase.com/authors/shiny-p-kumar/177340
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html
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ews
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%20Staffing%20&%20Compensation
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13. http://www.scribd.com/
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sp?cat=Human%20Resource%20Management
15. http://gateway.sources.com/
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time-of-the-global-economic-slowdown/
19. http://www.vservesolution.com/pdf/Information%20Technology%20Industry%2
0in%20India.pdf

Infosys Technologies (Rank 2)
Revenue FY11: Rs 25,997 crore
Revenue FY10: Rs 21,355 crore
Growth FY11: 22%

Infosys is the second largest IT company in India with 133,560 employees as of March 2011.
Infosys is ranked 28th globally in the list of IT services providing firms.
It has offices in 33 countries and development centers in India, China, Australia, UK, Canada, Brazil
and Japan.

Image: Infosys campus, Mysore.

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