1. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –
Journal of Management Research and Development (JMRD),
9390(Online), Volume 1, Number 1, January - December (2011)
ISSN 2248 – 937X (Print)
ISSN 2248 – 9390(Online), Volume 1, Number 1
JMRD
January - December (2011), pp. 47-51 © PRJ PUBLICATION
© PRJ Publication, http://www.prjpublication.com/JMRD.asp
HUMAN CAPITAL MANAGEMENT IS THE KEY FACTOR FOR THE SUCCESS OF
IT INDUSTRY
1
Saranya R and 2 Muthumani S
1
Research Scholar, Sathyabama University, Chennai.
2
Research Guide, Sathyabama University, Chennai.
email-id:saranyajagadeeswaran@gmail.com
ABSTRACT
Human Capital is increasingly recognised as a key competitive advantage for companies,
as well as a key indicator of a company’s success. There is a growing body of evidence that the
quality of Human Capital Management is an important factor in a business's competitive
advantage, and correlated with competitive performance. Companies need to manage Human
Capital through all the phases of an employee’s work life - from recruitment to development to
retention. Human Capital Management involves getting the right people, with the right skills, in
the right position, at the right time, rewarding them with the right incentives to perform the right
function in the right environment, to most effectively perform the work of the organization. It
also involves training/developing the capital, improving their output/productivity.
KEYWORDS : Human Capital Management, Human Asset.
INTRODUCTION
A business strategy that links the competencies, motivations and satisfactions of its employees
directly with drivers of value for customers, which in turn drives profitability for the enterprise.
Human Capital decisions are guided by data-driven, results-oriented planning and accountability
systems. The keys to a successful HCM strategy are process efficiencies, effective use of
information technology and business metrics. Human Capital Management is a yet another
important aspects with perspective to IT industries. It is must to identify the prospect employees
who are highly talented towards their work areas. So measuring the capability of employees will
be possible through talent management and also we can retain them .
METHODOLOGY
Research is an art of scientific investigation. The data collection pertaining to the study
involves on the basis of primary data and secondary data. In this study the samples were drawn
using stratified random sample method. The estimated total sample size is 75, out of which 61
were collected back and 50 were useful for the study. The respondents were the employees
working in IT industries in Chennai City. The study was carried out with the objectives of
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2. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –
9390(Online), Volume 1, Number 1, January - December (2011)
evaluating the effectiveness of Human Capital Management in the organisation and to increase
the value of employees. Mainly it also aims to evaluate the impact of training and development
of the employees to improve their level of productivity.
RESULTS AND DISCUSSION
After the data collected the data are compiled by using the appropriate statistical applications.
The results are shown in the form of tables and interpretations.
Table 1. Table showing that the level of motivation of employees towards their Job.
NO OF
S.NO OPTIONS PERCENTAGE
RESPONDENTS
1 Strongly 0 0
Disagree
2 Disagree 5 10
3 Undecided 5 10
4 Agree 28 56
5 Strongly Agree 12 24
Total 50 100
INFERENCE: It is clearly understood that most of the employees agree that the level of
motivation of employees towards their job is high.
Table 2 Table showing that the level of dedication of employees towards their Job.
S.NO OPTIONS NO.OF PERCENTAGE
RESPONDENTS
1 Strongly Disagree 0 0
2 Disagree 5 10
3 Undecided 5 10
4 Agree 28 56
5 Strongly Agree 12 24
Total 50 100
INFERENCE: It is clearly understood that majority of the employees are highly dedicated
towards their Job areas.
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3. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –
9390(Online), Volume 1, Number 1, January - December (2011)
RANKING METHOD
Table 3 Table showing that the performance level of employees through their training
OBSERVED COUNT
OPINIONS 1 2 3 4 5 TOTAL
FACTORS
EMPLOYEE’S
ARE WELL 0 5 2 30 13 50
QUALIFIED
RECEIVE
APPROPRIATE 0 3 6 28 13 50
TRAINING
TRAINING 0 4 5 25 16 50
LEVEL IS
HIGH
EDUCATION 0 1 2 16 31 50
NEEDS
WEIGHTED AVERAGE TABLE
WEIGHTS FACTORS
W X1 WX1 X2 WX2 X3 WX3 X4 WX4
5 13 65 13 65 16 80 31 155
4 30 120 28 112 25 100 16 64
3 2 6 6 18 5 6 2 6
2 5 10 3 6 4 8 1 2
1 0 0 0 0 0 0 0 0
TOTAL 50 201 50 201 50 194 50 227
CW 4.02 4.02 3.88 4.54
Rank 3 4 2 1
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4. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –
9390(Online), Volume 1, Number 1, January - December (2011)
INFERENCE: Education needs is ranked as 1, level of training as rank 2, Qualification of
employees as rank 4 for appropriate training received by the employees.
Table 4 : Table indicating the level of Human Capital Management
OBSERVED COUNT
OPINIONS 1 2 3 4 5 TOTAL
FACTORS
HIRING 0 1 10 33 6 50
PEOPLE
CREATIVITY & 0 11 5 36 7 50
INNOVATION
EMPLOYEES 0 1 6 32 11 50
ATTITUDE &
INTELLIGENCE
SOLVE 0 2 6 34 8 50
COMPLEX
PROBLEMS
EMPLOYEE’S
SKILLS & 0 1 6 30 13 50
KNOWLEDGE
SUGGESTIONS
• Employers in the organization are happy and satisfied with organization’s support for
continuing their education needs. Training received by the employee should be based
upon their needs and the level of motivation should be more in order to increase
employees dedication towards organization and to attain the organization’s goals.
• Organization value alignment should be developed according to the desires of employees.
• High morale should be maintained which directly leads to high productivity in the
organization.
• Employees information sharing with superiors, subordinates and peers should be
increased.
• Organisation should increase the value of employee by motivation, high pay, training and
development programs so that it reduces the retention level of employees.
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5. Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –
9390(Online), Volume 1, Number 1, January - December (2011)
CONCLUSION
The study about the human capital management will have an impact towards identifying
the areas in which the management should be concentrated. From the overall study on the human
capital management, it is understood that majority of the respondents are expecting appropriate
training, good salary should be given to employees and company should focus on hiring most
talented people. Most of the respondents are satisfied with the team work. So the organization
should ensure that adopting proper strategies and policies towards concentrating on the views of
the employees will help the organization to achieve the prospective goals as well as it improves
the level of intelligence of the employees wherein which restraint the disputes and thereupon the
employees will have congenial relationship with all the people.
REFERENCES
1. Angela Baron &Michael Armstrong (April 2007). ‘Human Capital Management :
achieving added value through people, Kogan Page Publishers’.
2. John F.Tomer ‘The Human Firm:A Socio-economic analysis of its behaviour and
Potential in a new economic’
3. Ronald J.Burke,Cary L.Cooper ‘Reinventing Human Resource Management Challenges
and New Directions’.
4. Patrick M,Wright & Gary C.MCMahan ‘Exploring HUMAN Capital ; putting ‘human’
back into Strategic Human Resource Management’ Volume 21, Issue 2, pages 93-104 –
April2011.
5. Becker G.S (2002) ‘The Age of Human Capital Education in the Twenty-First Century’.
6. Wright P & Snell S(1998) ‘Towards a Unifying Framework for Exploring fit and
flexilibility in Strategic Human Resource Management’ - Academy of Management
Review 23, Page756-772.
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