human capital management

Journal of Management Research and Development (JMRD), ISSN 2248 – 937X (Print) ISSN 2248 –

9390(Online), Volume 1, Number 1, January - December (2011)

47

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:[email protected]

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

Journal of Management Research and Development (JMRD),

ISSN 2248 – 937X (Print)

ISSN 2248 – 9390(Online), Volume 1, Number 1

January - December (2011), pp. 47-51

© PRJ Publication, http://www.prjpublication.com/JMRD.asp

JMRD

© PRJ PUBLICATION



48

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.

S.NO OPTIONS NO OF

RESPONDENTS PERCENTAGE

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 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

RESPONDENTS

PERCENTAGE

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.



49

RANKING METHOD

Table 3 Table showing that the performance level of employees through their training

OBSERVED COUNT

OPINIONS

FACTORS

1 2 3 4 5 TOTAL

EMPLOYEE’S

ARE WELL

QUALIFIED

0

5

2

30

13

50

RECEIVE

APPROPRIATE

TRAINING

0

3

6

28

13

50

TRAINING

LEVEL IS

HIGH

0

4

5

25

16

50

EDUCATION

NEEDS

0

1

2

16

31

50

WEIGHTED AVERAGE TABLE

WEIGHTS

W

FACTORS

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



50

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

FACTORS

1 2 3 4 5 TOTAL

HIRING

PEOPLE

0

1

10

33

6

50

CREATIVITY &

INNOVATION

0

11

5

36

7

50

EMPLOYEES

ATTITUDE &

INTELLIGENCE

0

1

6

32

11

50

SOLVE

COMPLEX

PROBLEMS

0

2

6

34

8

50

EMPLOYEE’S

SKILLS &

KNOWLEDGE

0

1

6

30

13

50

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.



51

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.

human capital management

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