Academic journal article IUP Journal of Organizational Behavior

Exploring the Relationship between HR Practices and Job Satisfaction across Selected IT Companies

Academic journal article IUP Journal of Organizational Behavior

Exploring the Relationship between HR Practices and Job Satisfaction across Selected IT Companies

Article excerpt

The dynamic market scenario reviving from the recent recession has seen a lot of changes in the employee perspectives and behavior. With new avenues opening up for employees enhancing attrition, each organization needs to map the satisfaction of its employees with the Human Resource (HR) practices it follows to ensure that the talent pool is retained. The current study is an attempt to determine the relationship between HR practices and job satisfaction in selected IT companies in India. Three IT companies in Northern India were covered as part of this study. The data was collected by using a questionnaire based on a job satisfaction scale developed by Wood et al. (1986) and HR practices through e-mail to 200 employees across these companies. 124 responses received were coded and the data was analyzed using t-test and correlation. The results indicate that male and female employees in the organizations under study have different perceptions of HR practices and job satisfaction. The results also show that in the IT industry, 82% of the HR practices are driven by three dimensions of job satisfaction, namely, information, variety, closure and pay.

Introduction

The dynamic industrial policy declared in 1996, with comprehensive packages of incentives and concessions, has ensured a productive ground for various industries. The hardware and software industries have now brought about a revolution of sorts under these schemes. Various institutions and computer training centers have contributed to the large number of trained and talented professionals. According to NASSCOM, the industry is growing atan extremely high pace, indicative of a decade of strong growth- growing 15 times to aggregate revenues of $69.4 bn in FY2009. Also, it is one of the largest employers in the organized private sector, providing direct livelihood to 2.2 million people (NASSCOM, 2010).

India's software industry statistics demonstrates the great leaps it has achieved and the prospects it unfolds. According to the NASSCOM Strategic Report (2010), the sector aggregated revenues of $73.1 bn in FY2010, a growth of 5.4% over FY2009. It has generated direct employment for 2.3 million people, diversifying beyond traditional IT into many more service lines, with Indian and MNC service providers collaborating and competing to build the industry.

India is becoming the offshore software development outsourcing destination of choice. In Springboard Research report released Feb 2009 (Business Week, 2008), IT spending in India is deemed to have expanded by 14.1% in 2009, although at a slower rate than the 18.1% growth it clocked in the previous year. NASSCOM's Strategic Review (2009) sharing the annual statistics related to the Indian IT-BPO industry described 2008 as a transformational year for the IT-BPO sector, where it re-engineered itself to face the challenges presented by a global economic downturn. According to the report, during 2007-08, the Indian IT-BPO industry maintained its double-digit growth rate and was a net hirer. This growth was fueled by increasing diversification in the geographic base and industry verticals and adaptation in the service offerings portfolio. While the effects of the economic crisis were expected to linger in the near-term future, the Indian IT-BPO industry displayed resilience and tenacity in countering the unpredictable conditions and reiterating the viability of India's fundamental value proposition. Consequently, India managed to retain its leadership position in the global sourcing market. At the same time, the survey showed that substantial growth would take place over the next two years, enabling the industry to get past the $60 bn export target in FY2011. In the current global crisis, it is a must that organizations retain the best of the talent and ensure its motivation and satisfaction.

It is observed from the review of literature that in an organization, reduction of attrition and improvement of turnover can be achieved by increasing the involvement of highly skilled employees. …

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