IRJMST Vol 11 Issue 4 [Year 2020] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

A STUDY ON HR POLICIES AND STRATEGIES IN IT COMPANIES IN INDIA

Ms. Preethi Stanley
Assistant Professor
BMS College of Commerce and Management
Prof. Pankaj Choudhary
Principal
BMS College of Commerce and Management
Abstract
Human Resources are skills, attitude, creative abilities, cognizance and different characteristics
obtained in an organization’s perspective. They correspond to the total inbuilt capacities, obtained
information and skills as exemplified in the attitude and talents of the employees. The policies,
practice and strategies lead the organization to respond on its targets. It ought to be a social
impression of the qualities and convictions of the organization. The approaches ought to be brief and
clear with the goal that everybody in the organization can comprehend its goal, the means to
accomplishing the mission. This everything is possible if the human resource department of the
organization is working adequately and is aligned to the business operations of the organization. This
paper gives clear data about various functions of HR, HR policies and strategies encircled by
selected IT Organizations in India. A conceptual framework based on the past research papers,
journals and other secondary sources is designed for the present study.
Keywords: Human Resource Management, Policies, Strategic alignment, Organizational
development, employee perspective, HR functions
1. Introduction
Every organization operates businesses in a social system with economic pursuits. Human capital is
viewed as an essential resource among all resources utilized in a social system. All the activities of
an organization are commenced and completed by human resource that belongs to the organization.
Plants, workplaces, partially or fully automated machines, sophisticated equipment and many such
materials in an organization are reliant on human resource and remain un-profitable apart from
personnel effort and direction. In short, the achievement of any organization relies especially on the
quality of its human resource1.
Management of staff which was recently considered as an administrative operation has now changed
into key association and significant force of performance and effectiveness of an organization. In the
past, the long-established role of staff unit was cost work identified with selection, recruitment,
compensation and training of employees has developed as integrative and systematic and strategic
human resource management. For the past two decades there has been expanded consideration of
researchers in the field of strategic human resource management because of its constructive relation
with financial and market performance of the organization. Connecting HR work with strategies of
the organization is an approach to use the available skill, knowledge and behaviour to create the
collaboration for achievement of required objectives and goals.
2. Statement of the Problem
Productive use of resources such as hardware, materials and money within an organization relies
upon the effectiveness of human resource. Effective and capable Human Resource (HR) is crucial for

1 Nicholson, B. and Sahay, S. (2008) “Human Resource Development Policy in the Context of Software Exports: Case Evidence from

Costa Rica”, Progress in Development Studies, 8(163).

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any organization and it is the core resource on account of IT industry where quest, innovation and
creativity for ceaseless learning are essential and indispensable. The HR in IT sector must be
dynamic because of multicultural nature, rigid worldwide competition and rapidly evolving
technologies. The perception of employees about management and the idea of their association with
the businesses and managers and other colleagues rely upon HR policies, rules and guidelines.
Therefore, it is significant to frame suitable HR strategies by the management of human resource.
Thus, effectual management of HRM issues in all facet of business is a contributing component in
achieving performance and accordingly becomes strategic in nature. Hence, the present study focuses
on analyzing significant HR policies and strategies in IT companies in India that are aligned for
attaining organizational development.
Objectives of the Study
 To study the functions of HRM in IT companies in India
 To analyze the policies and strategies relating to specific HRM activities such as Selection
and Recruitment, Training and Development, Performance appraisal and Job design and
rotation
 To study the impact of strategic alignment of HR policies on organizational development

3. Human resource management

Human Resource Management implies utilizing individuals, building up their resources, using and
maintaining their services and paying them in line with their role and performance and organizational
requirements. Human resource management is to make the most profitable utilization of human
resource to the best advantages of the organization and people. The organization will probably
achieve profits and social responsibilities. HRM requires alignment of HR policies and practices with
the organizations’ strategies - both corporate and functional. By connecting HR practices and
policies with strategies, the HR administrators help detail and actualize business strategies. HRM
presumes that it is the employees that make the difference in the organization. Only they are
equipped for producing worth and adding to organizations’ competitive advantage. Strategies and
policies making by the Human Resource Department (HRD) for the IT enterprises in India especially
for talent management, innovation orientation, succession planning, learning and development,
benefits and compensations, motivations etc consequently get significant boost up when their staff
individuals are well trained and updated on the decision support system tools for more client driven
approach that outcomes in considerable enhancement of profit in addition to increased customer
satisfaction.
4. Importance of HR/ HRM
Corporate sector face various challenges at this new information era. Digitalisation, deregulation and
liberalisation has constrained business organizations to find better approaches for working and
contending at the worldwide level, nearly in each part of business. Generally, organization used to
emphasize on enrichments and assignments of substantial resources just yet ferocious rivalry in new
information age has constrained the organizations to focus on endowment and use of scholarly
capital particularly human capital. Despite the fact that, human resource management issues are not
aligned with the standard of the organization’s key management process, yet of late, to achieve long
haul performance and sustainable competitive advantage business organizations are searching for
taking a vital stance in their direction towards Human Resource. HRM hence incorporates all

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strategies, policies and practices for overseeing work force. In the midst of transcendence of
mechanist organizations, the perspective used to be disengaged with key reasoning. In present
dynamic and serious condition, HRM is considered as one of the most significant pillars of
formulating strategies and implementing the processes.
5. Role of HRM
The job of HRM is to design, create and manage policies and projects intended to make better use of
organization’s human resources. It is concerned about the individuals at work and their association
with the organization. According to R.L Mathis and J. H. Jackson (2010)2 HR management takes up
the responsibility of fulfilling several roles. The nature and degree of these roles rely upon what the
senior management expects from HR management and what skills do the HR staff possess or
exhibited. Following are the three roles that define the HR management:
 Administrative
The administrative role of HR management has been intensely situated to organization and
recordkeeping including fundamental legitimate desk work and policy implementation. Significant
changes have occurred in the administrative role of HR during the ongoing years. The two significant
movements that drive the change of the administrative role are Greater utilization of technology and
Outsourcing.
 Operational Actions
Most of the HR activities are managed by HR managers in accordance with the strategies and tasks
that have been recognized by management and acts as a supporter for issues and concerns raised by
employees. HR frequently has been seen as the advocate of employee in organizations. They go
about as the voice for employee concerns, and invest impressive energy in HR "emergency
management," managing worker issues that are business related as well as that not related to
business. Worker support assists with guaranteeing reasonable and impartial treatment for employees
irrespective of their personal background.
 Strategic HR
The administrative role customarily has been the predominant role for HR. A more extensive change
in HR is required with the goal that fundamentally less HR time and less HR staffs are utilized only
for administrative work. Contrasts between the operational and vital jobs exist in various HR regions.
The key HR job implies that HR experts are proactive in tending to business real factors and
concentrating on future business needs, for example, strategic planning, strategic compensation, HR
performance and estimating its outcomes.
6. Policies and Practices in Human Resources
Organizational Policies are developed by management of the organizations to transmit its philosophy
and guiding strategy to employees. Management and business process proprietors are liable for the
organization and structure of policies to control it toward progress. Policies apply a solid
accentuation to the expressions of management. They characterize, detail, and determine what is
anticipated from workers and how management plans to address the issues of clients, employees and
stakeholders.
HR management (HRM) is a coordinated arrangement of arranged and planned strategies, policies
and practices for overseeing individuals in an organization; and HRM practices as the operations
really executed and experienced by workers, and that can be equitably confirmed. Human Resource

2 R.L. Mathis and J.H. Jackson, Human Resource Management, 13th Edition, South-Western College Publishing, Ohio (2010).

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Management accentuate the joining that must exist between HR management practices and the
external and internal possibilities of the organization Oliveira and Oliveira (2011)3. HR policies and
strategies are important to oversee individuals at work, explicitly in the angles identified with
employing, training, assessment, compensation and the arrangement of a decent and secure condition
for organization representatives (Dessler (2002)4. There were five primary policies and practices that
established employee management in organizations by the HR region they are selection and
recruitment, training and improvement, compensation, performance appraisal and working
conditions.
7. Human resource policies and strategies - Organisation’s role
Every organization considers its HR director as a part of the senior management group. The
organization has HR policies and strategies established on the rule of justice. This implies
reasonable standards, methods and decisions that are applied fairly in every individual staff’s
case. Relational correspondence is described by politeness, dignity, respect and honesty.
The organization creates, evaluates and implements HR policies and strategies that are
proposed to make a positive workplace. Authority supported by compelling HR policies and
strategies is a main thrust in making a positive workplace in the organization.
The organization advances the significance of HR policies and strategies, especially those
identifying with work connections and acknowledgment of diversity, at all varieties of the
organization.
8. The organization normally reviews and monitors basic indicators through HR performance
including the nature of work connections, staff prosperity, organizational equity,
receptiveness to diversity and emotional intelligence. The organization researches to evaluate,
develop and monitor individual staff.
9. Human resource policies and strategies - Individual’s role

Individuals fit in with the HR policies and systems that ensure to reach the customers and
employees. An example of this is the code of conduct.
Individuals have confidence and trust in their associates, managers and the organization.
They feel remembered for the group, regarded equivalent to other people, and ready to raise
their concerns securely. Employees expect transparent communication from HR managers.
Employees recognized and rewarded for their good performance result in enhanced
productivity.
Employees request managers for providing flexible working hours to balance their work and
personal commitments. They want decisions and processes to be fair from organization.

10. Human resource policies and strategies - Manager’s role

Managers actualize reasonable HR policies and strategies with the help of HR professionals.
They utilize the performance management system to create and assess the capability of their
team to shape positive work connections.
Managers use training as a technique for developing, spurring and holding quality staff and
advancing positive work connections, acknowledgment of diversity and fair practices.

3 Oliveira, a. M. B.; Oliveira, A. J. Gestão de Recursos Humanos: uma metanálise de seus efeitos sobr desempenho organizacional.
Revista de Administração Contemporânea - RAC, v. 15, n. 4, p. 650–669, 2011.
4 Dessler, G. Administração de Recursos Humanos. 2ª.ed. São Paulo: Prentice Hall, 2002

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Managers collaborate with their staff without partiality. They are expected to be polite and
honest and treat every individual staff with dignity and respect.
11. Human Resource strategy and characteristics
A Human Resource strategy is an overall plan for managing business and the human capital to run
the business operations. The Human Resource methodology sets the heading for all the key zones of
HR, including recruiting, execution evaluation, improvement, and pay. The HR system is
subsequently a long term plan that directs HR practices throughout the organization.
12. Characteristics of HR strategy
HR requires organizational analysis and scrutinizing of external environment. It takes longer
than one year to actualize to shape the character and course of Human Resources
Management operations.
Helps in the allocation and deployment of organizational resources such as time, money, staff
etc.
It fuses the master judgment of senior (HR) management and is amended on annual basis.
It is number-driven and brings about a particular behaviour.

13. Impact of IT Sector in the growth of Indian Economy

IT part has obtained one of the most huge development impetuses for the Indian economy.
Notwithstanding fuelling India's economy, this industry is likewise emphatically affecting the lives
of its kin through a functioning immediate and aberrant commitment to the different financial
parameters, for example, work, way of life and diversity among others. The business has assumed a
huge role in changing India's image from a slowly developing bureaucratic economy to a place that is
known for creative business visionaries and a worldwide player in giving global technological
solutions and business administrations.5 The business has helped India change from a agricultural
and rural based economy to an information based economy.
14. Research methodology
The purpose of the study is to find how HR policies and strategies are playing a significant role in
the organizational and employee performance in selected IT industries. For this study a sample of
employees working in selected IT companies across India are selected and studied. The methodology
used for the study is described below with universe for the study, sampling method, data collection
and tools for analysis.
Research Design: A descriptive survey design was adopted in the present study.
Target Population: Target population comprises of the HR Managers, Project Managers, Team
Leads and Software Engineers within the selected IT companies in India.
Study area: Top four IT companies in India were selected for the present study viz. TCS, Infosys,
Wipro and Tech Mahindra.
Sample Size: The sample size determines the number of individual samples measured in a survey.
The sample size for the current study is 103.
Sampling method: Simple random sampling method has been adopted for the present study.
Data Sources

5Jalaja E (2015) Contribution of IT & ITES Sectors in the Growth of Indian Economy, International Research Journal of Management
and Commerce , Volume 2, Issue 12, Dec 2015

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Primary Data: A self-structured questionnaire was administered to obtain data about the HR
policies and Strategies in selected IT companies in India. Three questions are related to demographic
variables such as gender, age, etc. Other 6 dimensions are based on the HR policies and Strategies in
selected IT companies like selection and recruitment, training and development, performance
appraisal, job design and rotation, strategic alignment and organizational development. These factors
are selected based on discussion with expert and based on past studies. Five-point Likert scale is
used in the questionnaire to collect data where 1 stands for Strongly Disagree, 2 stands for Disagree,
3 Neutral, 4 stands for Agree and 5 stands for Strongly Agree.
Secondary Data: Secondary data was collected through reports, newspaper, articles, journals,
conference proceedings, textbooks and Internet sources.
15. Data Analysis:
The association between the study variables were analysed with the help of various statistical tool
such as Regression, Chi Square and Correlation. The collected data was entered and analysed using
Statistical Package for Social Sciences (SPSS) version 20.
H01 - There is no relationship between Age and Experience of the respondents
Chi-Square Test
Table – 1
Factor Value Df Symp. Sig. (2- Statistical
sided) Inference

X 2= 133.125a
a
Pearson Chi-Square 133.125 6 .000 Df = 6
P= .000 <0.05
Likelihood Ratio 134.271 6 .000 *significant at 5%
level
Linear-by-Linear
16.767 1 .000
Association

N of Valid Cases 103

*Significant at 5% level
Analysis:
It can be seen from Table - 1 the P value is lesser than our chosen Significance at = 0.05 levels, the
null hypothesis is rejected.
Discussion:
The value of Pearson Chi-square is 133.125, at 6 degrees of freedom and 5 per cent level of
significance, therefore the Null Hypothesis (“There is no relationship between Age and experience of
the respondents”) is rejected; and it is concluded that there is an association between age and
experience factors.

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Correlation between Strategic Alignment and Organizational Development

H02: There is no significant relationship between Strategic Alignment and Organizational
Development
Table No – 2
Strategic Alignment and Organizational Development
Strategic Alignment Organizational
Development
Pearson Correlation 1 .366**
Strategic
Sig. (2-tailed) .000
Alignment
N 103 103
**
Pearson Correlation .366 1
Organizational
Sig. (2-tailed) .000
Development
N 103 103
*Correlation is significant at the 0.01 level (2-tailed)
Analysis and Interpretation
From the table – 2 it is found that the value of coefficient of correlation between Strategic Alignment
and Organizational Development is 0.366. It represents a positive correlation between two variables.
The obtained coefficient of correlation is found to be significant at 1% level of significance. Thus the
null hypothesis, i.e. “There is no significant relationship between Strategic Alignment and
Organizational Development” is rejected. It seems fair to interpret that the Strategic Alignment and
Organizational Development are related to each other. It implies that correlation exists between these
two sets of variables, i.e., Strategic Alignment and Organizational Development.

Regression Analysis
H03 – There is no significant relationship between Training and development and Strategic
Alignment
H04 – There is no significant relationship between Performance Appraisal and Strategic Alignment
Table No – 3
Model Summary
Model R R Square Adjusted R Std.Error
Square
a
.990 .919 .919 0.74196

ANOVA
Model Sum of df Mean F Sig
Squares Square

Regression 815.354 2 423.334 769.425 .000b

Residual 57.493 100 0.537
Total 882.807 102
*5% Significant Level

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Co-efficient
Model Unstandardized Standardized t Sig.
Coefficients Coefficient

B Std.Error Beta
(Constant) .411 0.223 1.578 0.000
Training and
Development 0.928 0.022 .943 33.653 0.000

Performance
0.966 0.022 0.969 39.431 0.000
Appraisal
*5% Significant Level
Inference:
Training and development is an independent variable and Strategic Alignment is a dependent
variable. From the above table it is found that the P Value is 0.000, Therefore it is found that
Training and development influence the Strategic Alignment, as the P value is lesser than 0.05.
Hence null hypothesis is rejected.
Performance Appraisal is an independent variable and Strategic Alignment is a dependent variable.
From the above table it is found that the P Value is 0.000, Therefore it is found that Performance
Appraisal influence the Strategic Alignment, as the P value is lesser than 0.05. Hence null hypothesis
is rejected.
16. Key Findings
 The value of Pearson Chi-square is 133.125, at 6 degrees of freedom and 5 per cent level of
significance, therefore the Null Hypothesis (“There is no relationship between Age and
experience of the respondents”) is rejected; and it is concluded that there is an association
between age and experience factors.
 Correlation test shows that the value of coefficient of correlation between Strategic
Alignment and Organizational Development is 0.366. It represents a positive correlation
between two variables. The obtained coefficient of correlation is found to be significant at
1% level of significance. Thus the null hypothesis, i.e. “There is no significant relationship
between Strategic Alignment and Organizational Development” is rejected. It seems fair to
interpret that the Strategic Alignment and Organizational Development are related to each
other. It implies that correlation exists between these two sets of variables, i.e., Strategic
Alignment and Organizational Development.
 Regression analysis proves that the training and development is an independent variable and
Strategic Alignment is a dependent variable, it is found that the P Value is 0.000, Therefore it
is found that Training and development influence the Strategic Alignment, as the P value is
lesser than 0.05. Hence null hypothesis is rejected. Performance Appraisal is an independent
variable and Strategic Alignment is a dependent variable, it is found that the P Value is 0.000,
Therefore it is found that Performance Appraisal influence the Strategic Alignment, as the P
value is lesser than 0.05. Hence null hypothesis is rejected.

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17. Limitation
The number of IT organizations is developing quickly, so the review has been limited to
chosen number of IT organizations in the sample size.
Sample respondents and their perception on HR policies and strategies over various HRM
aspects were obtained only from sample companies.
It was challenging to collect data from samples in equal number from various segments
which would have been more appropriate for research studies.
Present study is limited to IT organizations based in India while different nations were not
taken into consideration.
Respondents are limited to 103, where few of them were not interested in providing valid
answers to the questionnaire and few were disinterested in participating in the survey. Hence,
the results could be different when compared to large sample size.

18. Suggestion
 Based on the study results and observations, following suggestions are framed with respect to
the topic under study:
 To accomplish a balanced growth and improvement of human resources, a complete system
of human resource planning, such as, career development are to be structured and
implemented.
 To reinforce the joint effort and participation among managers and employees other than the
foundation of the method of meritocracy at various levels of the organization, incentive bonus
schemes and payment policies are to be designed and executed on the basis of proficiency,
performance and productivity of the employees.
 It is also important for HR professionals in IT organizations to revise the retirement policies
and benefits for the IT employees.

19. Conclusion
HRM empowers the organization to get and hold the talented, submitted and all around inspired
workforce it needs, to upgrade and build up the inborn limits of individuals - their commitments,
potential and employability - by giving learning and continuous opportunities for development. The
act of HRM must be seen through the crystal of in general key objectives for the organization rather
than an independent tint that takes a unit based or a miniaturized scale approach. The thought here is
to receive an all encompassing point of view towards HRM that guarantees that there are no
progressive strategies and the HRM policy that entangle itself completely with those of the
organizational objectives.
References
 Dessler, G (2002). Administração de Recursos Humanos. 2ª.ed. São Paulo: Prentice Hall,
2002
 Jalaja E (2015) Contribution of IT & ITES Sectors in the Growth of Indian Economy,
International Research Journal of Management and Commerce, Volume 2, Issue 12, Dec
2015

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