The advent of information technology into business and industry during the last two decades has brought about a radical shift in the management paradigm from physical assets to people assets . While even during the old economy days, sensible and enlightened management, albeit, in a benevolent manner, used to value the people factor in business profitability, in the new economy, it has become a business imperative. The primary human resource (HR) focus has also undergone a sea change with this shift in people paradigm. Today, people are the real assets and all HR policies & practices should underscore this aspect.
The greatest concern of some of the major players in the new economy in the knowledge-based industry is that human capital is the foundation of value creation. However, the dilemma is that the most important asset is generally the least understood, least prone to measurement and hence least susceptible to management. This calls for a new impetus to HR framework for acceptable and desirable business performance and growth. Some of the key drivers for a successful HR practice in the IT industry where outsourcing of projects is generally the norm today are discussed below:
HR as a Business Enabler
Traditionally, in the past, HR has been seen as a support function and not necessarily as a core business function. The high stakes and risks under which the knowledge industry operates have turned it round and today it is generally accepted that in order to be effective in the long term, the HR function should also become a business enabler function. This entails a long term strategic perspective, alignment with the vision, mission and guiding principles of the organisation with continuous business focus retained at all times.
Systems and Process Orientation
A well-designed and effectively implemented HR system and practice with functional excellence will go a long way in supporting the business policies of the organisation. With established players in the IT industry, this aspect gains greater significance in view of the global scale of operations in a multicultural environment. HR should learn from benchmarking studies and best practices of major IT companies operating in the global marketplace and acquire the necessary process expertise to support business plans in a proactive manner. One of the most important functions for a global IT company would be adequate and timely immigration support to ensure that the onsite-offshore model works and supports the deliveries in a seamless fashion. This entails a lot of hard work and research coupled with dedicated and continuous support, proper networking and coordination with multiple agencies like consulates, travel agencies, and legal entities to ensure smooth immigration of employees well ahead of the requirements projected. Besides, all HR processes should be supported by quantitative data and analysis of performance metrics at all times.
Attract, Develop and Retain Talents
A well-oiled selection process and scientific talent management are called for resourcing and recruitment of knowledge workers. The emphasis here should be “hiring the right attitude” rather than looking for past performance and skills, which can always be developed once a person is hired. Recruitment is one of the high-pressure functions in any IT industry and there is always a gap between the demand and supply. There should be a constant endeavour to raise the bar by effective image building and expectations management. Once the right talent is tapped, it is necessary that their skills and competencies are further developed through a well thought-out career planning and career development strategy. It may be worth remembering that the desirable skills and competencies which an organisation is looking for may not be congruent with the aspirations of the employee. Therefore, a constant dialogue and career consulting through an effective feedback mechanism should be put in place to achieve the necessary goal congruence.
Knowledge workers are generally compensation sensitive and understand their price in the marketplace. Good organisations, therefore, always benchmark the desired compensation levels, at least, on an annual basis and keep the satisfaction levels at a high pitch. It should be the endeavour of the organisation to become the first choice employer, at least, in the chosen market segment. There is always a trap in the management of compensation as it is, generally, a moving target.
Therefore, IT organisations should aim beyond the satisfying levels of compensation and provide a challenging and rewarding work environment through goal setting, scientific performance management and good productivity management.
This should be further reinforced through due recognition and rewards for exemplary performance and such events should be celebrated with public recognition. The HR Scorecard’ method introduced by reputed organisations can be gainfully utilised in this context.
Work Culture And Environment
The IT industry in India has been largely responsible to usher in an open work culture with world class facilities and an environment of creativity, fun and high level of self management, HR should handle this aspect with due care and sensitivity through open and effective communication, high level of networking, transparent dealings and judicious balance between empowerment and work discipline.HR, to be credible, should deal in an ethical manner encouraging honest feedback and objective criticism of the work environment, meeting the aspirations of the young workforce. The employee satisfaction and feedback surveys should be organised periodically to assess the state of work environment and work culture so that necessary corrective actions and improvements can be applied continually.
Training And Education
The knowledge Industry leverages the collective competencies of its work force and there is nothing else really to fall back upon. As a result , training and education to address career aspirations of the employees assumes far greater significance.Some of the initiatives which an IT company takes through the HR Department are enumerated below :-
# Competency mapping of all the roles and functions based on business models.
# Availability of multiple vehicles for training like classroom teaching, on-the-job training, self-learning, one-to-one coaching and mentoring etc.
# Acquiring business knowledge and domain skills.
# Comprehensive proficiency in various soft skills like communication skills, team building & team leading, personal effectiveness, cross-cultural orientation, technical writing, time management, managing executive stress etc.
# Facilities for career development by pursuing courses at own time at various reputed universities and institutions.
# Networking with reputed associations and institutions for knowledge sharing and skill advancement.
The writer is Head of Operations, Keane India Ltd , Hyderabad .
[ Originally published in the Financial Express dated August 16 , 2003]