PROJECT REPORT ON

“COMPARATIVE STUDY OF HUMAN RESOURCE

PRACTICES IN INFORMATION TECHNOLOGY INDUSTRY”

A dissertation submitted in the partial fulfillment of the

requirement for the award of the Degree in
MASTER OF BUSINESS ADMINISTRATION

Amity global business school, Chandigarh

Submitted to:- Submitted By:-

Pro. Neha Walia Gurpreet kaur Gill
MBA- 4thSem
345
 STUDENT’S DECLARATION

I Gurpreet kaur gill here by declare that I have prepared this project report
in “Comparative Study of Human Resource practices in Information
Technology Industry” in partial fulfillment for the requirement for the
course of “MASTER OF BUSINESS ADMINISTRATION” from AMITY
GLOBAL BUSSINESS SCHOOL, CHANDIGARH under the guidance of
PRO.NEHA WALIA

This Project report is entirely original work of mine and has not been
submitted for any other Degree/Diploma,

(Gurpreet kaur gill)

Place- Chandigarh
Date-2 may.2011
 CERTIFICATE

This is to certify that the project entitled “Comparative study of Human

Resource practices in Information Technology Industry” submitted for
the degree of MASTER OF BUSINESS ADMINISTRATION (MBA) with
specialization in HR and marketing from AMITY GLOBAL BUSINESS
SCHOOL, CHANDIGARH, is a bonafide research work carried out by
gurpreet kaur gill under my supervision that no part of this project has been
submitted for any other degree.

The assistance and the help received during the course of investigation
have been fully acknowledged.

Ms.Neha Walia
Guide
 ACKNOWLEDGEMENT

I am indebted and grateful to Pro.NEHA WALIA, AMITY GLOBAL

BUSINESS SCHOOL, CHANDIGARH for her valuable guidance was
indispensable and invaluable during the days and afterwards. This project
was a great source of learning for me.
 Page No

EXECUTIVE SUMMARY

1. Executive summary 7

2. Introduction Theoretical background

3. Design to study 9
4. Research Methodology 10
5 Hypothesis 11
6 Sampling 12
7 Methodology 13
8 Operational definition of HR concept 14 -18
9 Industry profile 19
10 Company profile 21 -32
11 Conclusion 33
10. Data analysis and interpretation 35-52
12. SUMMARY OF FINDINGS AND SUGGESTIONS 53
Findings
Recommendations
Conclusion 54

BIBLIOGRAPHY 55
Questionnaire 56
EXECUTIVE SUMMARY
This report contains the 'HR Practices of Information Technology Industry’ and a

Documentary Study of the HR Department of IBM Global Services Ltd. The

report gives an overview of the IT industry, and a detailed description about the

various Human Resource Practices & their functions. It also includes a diversity

of the best HR strategies that are critical to a company’s future success –

particularly identifying, Recruitment & Selection process, Training &

Developing, Performance Management systems, Remuneration Strategies and

Retaining top employees of the organization. It also includes the social life of

IT professionals, with IT becoming one of the most important professions

in India today. A comparative analysis has been made based on the data

collected and a Benchmark has been created with respect to the various HR

practices of different companies. The methodology adopted for the study was

through a structured questionnaire, which targeted the privileged

employees of the organization and the sample size was 10. The data collected

from the respondents were analyzed thoroughly and presented in the form of

charts and tables.

In addition this report summarizes the proceedings of the HR department and

other areas of concern about the company. It familiarizes with the organization culture

and how communication flows from the top level to the low-level management or vice

versa in an orderly manner. It also gives a brief explanation about the HR policies and

procedures used for creating the project report of the company. A comparative analysis

has been made on the HR practices of IBM

Introduction
THEORITICAL BACK GROUND

Information Technology (IT) is the technology required for information processing. In

particular the use of electronic computers and computer software to convert, store,
protect, process, transmit, and retrieve information from anywhere, anytime.

There is a shortage of talent at the upper end of the employment scale,

particularly in IT. There simply aren’t enough candidates with the necessary
experience to fill top roles. Seasoned professionals are often in short supply.
Turnover levels have gone up in IT and IT enabled sectors. Though still below
the rate of comparable industry segments in the West, turnover can be a
problem, as economic growth, increased salaries, and a shortage of skilled
employees at the top of the scale can tempt the best and the brightest to
change jobs often.

As a result of this, companies are adopting to Smart HR practices with a flavor of

innovation and modification in order to ensure appropriate Recruitment, Induction, and
Training & Development of employees. Shortage of salaries has raised dramatically in
high demand sectors, especially at the upper ends of the scale. In addition, salaries in
India account for less than half the value of a typical compensation package. Benefits
like rent-free or concessional housing, free use of motor vehicles and/or drivers, interest
subsidies on loans, and the like may all be part of a total compensation package.

Finding and keeping the right employees requires a multifaceted strategy.

Good pay and benefits simply aren’t enough; keeping employees also
requires companies to address less tangible factors, such as rewarding work
experience and the possibility of advancement. Most of the IT companies in
India, as well as major local enterprises are already addressing this issue
through ‘Best’ evolved HR practices

DESIGN OF STUDY
PROBLEM STATEMENT

The HR practices have been varied and significant in the IT industry. It was felt
necessary that a documentation of their practices would throw light on the extent
to which the HR processes has been introduced, and the depth to which each
activity has been carried out in the IT industry. This would be necessary for a
new company in the IT sector, which is looking for benchmarking their practices.
This will also help IBM, ACCENTURE, MASCON and SATYAM to find out where
they stand with the other companies in the industry. Hence this study:-

OBJECTIVE OF RESEARCH

The study is conducted. It cover company that are considered excellent in HR

practices:
1. To find out which method of recruitment is gaining importance in the IT
industry.
2. To find out the selection method that is followed mostly in the industry.
3. To find out the orientation and induction program in IT industry and its
duration.
4. To find out the type of training currently preferred by the company.
5. To find out the reward management system followed by different
companies.
6. To find out which method of appraisal is used in IBM
7. To find out which method of recruitment is gaining importance in the IT
industry.
8. To find out the selection method that is followed mostly in the industry.
 9. To find out the orientation and induction programme followed by the
companies in IT industry and its duration.
10. To find out the type of training currently preferred by the companies.

RESEARCH METHODOLOGY

RESEARCH DESIGN

The researcher used the exploratory research method to understand the HR

practices in various IT company

NATURE OF DATA

• Primary data

• Secondary data

SOURCES OF DATA

Data was collected with the help of interview schedule with open and closed end
questions.
1. Primary data was collected with the help of questionnaire.

2. Secondary data was collected by referencing company’s websites, journals, and

magazines and company documents.

HYPOTHESIS

People are the soul of every enterprise. Gaining recognition as one of world’s most
admired companies and retaining it over the years isn’t easy for any company, but for
the quality of its leaders and employees.

IBM has one of the largest professional workforces in the world today. And what we
bring to market is the expertise of our people, a workforce which is responsive to market
requirements, with the skills and expertise to deliver value to clients, is resilient to
market forces and delivers strong leadership.

IBM has retained its position as one of the World’s Top Employers of Choice over these
years because of its three-fold initiatives for the employees:
• Capability: Rigorous and ongoing career/skills development programs
• Climate: A challenging, empowering work environment, with world-class
infrastructure
• Culture: Sensitive to a global workforce
The attributes that qualify these 3Cs are the Top Reasons that people come to work at
IBM.

TOOLS OF RESEARCH

• The primary data was collected through the questionnaire method.

• Secondary data was collected through the published materials such as

business journals and the internet, etc.

TOOLS AND TECHNIQUES OF DATA COLLECTION

Tables have been widely used to tabulate the raw data. Further, percentage has
been drawn for generalization purpose. Graphs used are to have better pictorial
understanding / representation.

SAMPLING

Sampling Method: -

 Judgmental sampling/Convenience sampling

Sample Plan:-
Population:

Sample was drawn from IBM company in the Software or IT industry. The HR
managers and some of the second level employees of the organization were
interviewed. The company profile and HR practices of IBM Global Services, put
down in this report.

PLAN OF ANALYSIS

1. Stratification of data
2. Tabulation of data – sequencing and arranging the data logically in line
with the objective
3. Graphical representation of the tabulated data
4. Arriving at the key finding based on HR inputs in the graph
Drawing conclusions from key findings in comparison with objectives

METHODOLOGY

A structured questionnaire was prepared. The researcher gathered information

about the HR practices prevailing in the company. The data gathered was
analyzed and a comparative study has been made. Some facts are based on
secondary data like books, journals and website
METHODOLOGICAL ASSUMPTION AND LIMITATIONS

Questionnaires were the only instrument used to conduct the survey. The
questionnaire was prepared by keeping in mind the following factors:

• Data is collected by circulating questionnaires.

 • All primary data collected is true and reflects the actual intentions of
respondents.
• The data collected has been coded, tabulated and analyzed into logical
statements using simple statistical tools.
• Most of analyzed data is converted into percentage to facilitate easier
interpretation of data so obtained.
• All the information is through respondents, hence the result is mainly
dependent on primary data.
• Some facts are based on secondary data like books, journals and website.

LIMITATIONS OF THE STUDY

1. Meeting HR managers was a difficult task, so an exhaustive and in depth

study could not be under taken.
2. Since HR has numerous subdivisions, it was a difficult task to cover each
topic comprehensively.
3. Since the sample size was small, generalization is not possible.

OPERATIONAL DEFINITIONS OF CONCEPTS

HRM-DEFINITION

Human Resource Management is the planning, organizing, directing and

controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual,
organizational and social objectives are accomplished.
The activities include the staffing function of the organization. It includes the
activities of human resources planning, recruitment, selection, orientation,
training, performance appraisal, compensation, and safety.
RECRUITMENT

In simple terms, recruitment is understood as the process of searching for and

obtaining applicants for jobs, from among whom the right people can be
selected. A formal definition of recruitment is: It is the process of finding and
attracting capable applicants for employment; the process begins when new
recruits are sought and ends when their applications are submitted. The result is
a pool of applicants from which new employees are selected.

Though, theoretically, process is said to end with the receipt of

applications, in practice the activity extends to the screening of applications to
eliminate those who are not qualified for the job. The general purpose of
recruitment is to provide a pool of potentially qualified job candidates.
Recruitment represents the first contact that a company makes with potential
employees. It is through recruitment that many individuals will come to know a
company, and eventually decide whether they wish to work for it. A well-planned
and well-managed recruiting effort will result in high quality applicants, whereas,
a haphazard and piecemeal effort will result in mediocre ones. High quality
employees cannot be selected when better candidates do not know of job
openings, are not interested in working for the company, and do not apply. The
recruitment process should inform qualified individuals about employment
opportunities, create a positive image of the company provide enough
information about the jobs so that applicants can make comparisons with their
qualifications and interests, and generate enthusiasm among the best candidates
so that they will apply for the vacant oppositions.
Methods of Recruitment:-
I) Internal Recruitment
• Promotions and transfers.

II) External Recruitment

 • Campus Recruitment
• Employee Referrals
• Consultancies
• Advertisement
• Job Sites

SELECTION
Selection is the process of picking individuals (out of the pool of job applicants)
with requisite qualifications and competence to fill jobs in the organization.
Formal definition of selection is:
“It is the process of differentiating between applicants in order to identify (and
hire) those with a greater likelihood of success in a job.

ORIENTATION
Orientation and induction training, is designed to provide a new employee with
the information employees need to function comfortably & effectively in the
organization. Orientation is a planned introduction of employees to their jobs,
their co-workers and the organization.

Typically, orientation conveys three types of information:

i. General information about the daily work routine;
ii. A review of the organization’s history, founding fathers, objectives,
operations and products of services, as well as how the employee’s job
contributes to the organization’s needs; and
iii. A detailed presentation, perhaps in a brochure, of the organization’s
policies, work rules and employees benefits.
Orientation seeks to expose new employees to all areas of the organization. A
good orientation programme will create a favorable impression of the
organization, and its works.
PLACEMENT
Placement is understood as the allocation of people to jobs. It is the assignment
or re-assignment of an employee to a new of different job. Placement includes
initial assignment of new employees and promotion, transfer of demotion of
present employees. In this section, placement of new employees in emphasized.
Placement arising out of transfers, promotions, and demotions will be discussed
later in this book.

TRAINING
Human resource development has long been recognized by many developing
nations as a basic factor for socio-economic emancipation. Process is concerned
with the improvement and growth of the capabilities of individuals and groups
within the organizations. Every organization, in order to survive and to be
effective, should adopt the latest technology, that is, mechanism,
computerization and automation. Technology alone, however, does not guarantee
success unless people possessing requisite skills support it. Therefore,
organization should train the employees to enrich them in the areas of changing
technical skills and knowledge from time to time.

MOTIVATION
Motivation is an inner drive or an urge to gain or achieve the desired objective.

Motivation is a process that starts with a physiological or psychological

deficiency f need that activates behavior or a drive that is aimed at a goal or an
incentive. Motivation techniques IT companies must be new, innovative, and
should be able to keep employees in good humor.
Top Employee Motivators:
• Recognition
• Values and Culture
• Career growth
 • High compensation
• Quality of work life

PERFORMANCE APPRAISAL
Performance Appraisal may be understood as the assessment of an individual’s
performance in a systematic way, the performance being measured against such
factors as job knowledge, quality and quantity of output, initiative leadership,
leadership abilities, supervision, dependability, co-operation, judgment
versatility, health and the like. Assessment should not be confined to past
performance alone. Potentials of the employee for future performance must also
be assessed. “It is the systematic evaluation of the individual with respect to his
or her performance on the job and his or her potential for
development.”Companies like IBM appraise their employees twice in a year .
They use 360-degree performance method to appraise employees at managers’
level.

Objectives
 To effect promotions based on competence and performance.
 To assess the training and development needs of employees.
 To decide upon a pay rise.
 To let the employee know where they stand as their performance is
concerned.
 To find out the top 10 performers and the bottom 10 dead wood employees.

TEAM WORK
Teamwork is the spirit and the driving forces which different kinds of individuals
together for the successful accomplishment of a task.

COMPENSATION MANAGEMENT
Compensation – “Consideration for which labor is exchanged is called
compensation.” It refers to all forms of pay or rewards going to employees and
arising from their employment.

Basis for determining compensation

• Based on time.
• Based on work.
• Based on cost of living or inflation.
• Based on market situation and business performance.

Objectives
• To satisfy employee needs.
• To maintain or increase productivity.
• To satisfy ego needs (Status, perception, recognition)
• To motivate employees.

INDUSTRY PROFILE

India's IT industry is growing at a rapid pace as overseas companies continue to move

jobs to the country. India's software and services industry grew by nearly 35 percent in
the financial year that ended in March 2005, helping Indian information technology
companies earn $22 billion.

The National Association for Software and Services Companies says the industry
boomed as international companies continued to move work such as software research,
design and development, and customer support to cheaper locations. India's huge pool
of skilled, English-speaking, technology workers has helped it become one of the prime
destinations for such work.

The United States and Britain are the dominant market for India's IT industry, but it has
begun winning new customers elsewhere, including Japan, Singapore and Germany.
According to research, India will remain a global technology hub because few countries
in the world can match its huge pool of low-cost, trained engineers.

Indian IT companies are now becoming very, large; they are beginning to now compete
globally with the large American and multinational players, so that position continues to
remain a very dominant one.

In recent years tens of thousands of jobs have moved to India as Western firms
transferred basic operations such as call centers, data processing and billing to benefit
from lower wages. The industry was expected to grow by 30 percent in 2008, helping it
reach its target of $50 billion by 2009.

India's IT industry now employs more than one million people in the country, and the
boom has raised worries about possible shortages of skilled manpower in the coming
years.

IT Professionals in India

With IT becoming one of the most important professions in India today, the IT
professionals are on demand. The outside world views their lifestyle to be
quite glamorous, as lot of wealth is associated with this industry; IT is seen
as a high profile and sunrise industry. This is a people driven industry that is
demonstrated in the fact that the companies share wealth with employees,
who help to create it.

There has been considerable attention to the roles of human resource professionals as
business partners and leaders of business change. For many individuals, these new
roles require the development of capabilities in such areas as formulating business and
human resource strategies, leading change, and redesigning HR processes to support
strategy implementation.
The average age of the IT professional is between 21-27 and they do not have a very
high level of maturity. All along, they nurture the ‘I, me and myself’ attitude. They are the
confused lots they do not know whether to have short tern or long-term goals. Most IT
professionals are wedded to their jobs (not company) and accomplishment gives them a
high. In addition, what is worse is the fact that society and IT companies are reinforcing
these attitudes. Social life of IT professionals in India consists of either drifting or
escapism.
The younger generation of this community constantly looks for better opportunities,
both financial as well as developmental. As a result, frequent job switching has become
the order of the day. Since the importance of HR in IT industry, every organization in
order to survive and to be effective, should adapt the latest technology. Technology
alone, however does not guarantee success unless people possessing requisite skill
support it. Through human resource, organization wants to direct and control all other
resources like, men, material and money. “People” are the real capital of an
organization. The success and survival of an organization depends on the
empowerment of people.
In today’s tight labor market, sound HR strategies are critical to a company’s future
success – particularly identifying, training, developing and retaining top employees. Job
requirements are changing for all industries; performance management has become a
critical link to developing productive workers and managers; identifying tomorrow’s
leaders takes front stage as company’s grow and change; rewards structures
demonstrate commitment to retention.
IT industry has given HR chance to be more creative. At the time when there is a
change across the entire IT industry, the innovative policies and trends adopted by HR
professionals may perhaps help the industry to reach a new level of maturity and
strength to. It seems new breed of HR professionals are keen to change the codes that
the high tech world has written for itself long ago. The HR department of various IT
companies now has a new role to come out with new and innovative perks to keep
employees in good humor. While organizations as IBM have been reading the HRD
revolution in the IT industry, others are not too far behind.
On one hand IT industry is unable to retain their best people, and on the other hand, it is
throwing out many IT professionals. The IT professionals need to keep pace with the
changes in technology; they need to fulfill the changes and demands in the new skill set
required. In addition, they need to develop leadership skill. With the desired
qualifications and man management skills.

Company’s Profile

1. IBM GLOBAL SERVICES INDIA PVT LTD.

IBM has been present in India since 1992. Since inception, IBM in India has expanded
its operations considerably with regional headquarters in Bangalore and offices in 14
cities including regional offices in New Delhi, Mumbai, Kolkata and Chennai. Today, the
company has established itself as one of the leaders in the Indian Information
Technology (IT) Industry.

IBM is the only company in the world that offers end-to-end solutions to the
customers from hardware to software, services and consulting. IBM has the
e-business capabilities, products, services and partner network to help large
and small enterprises plan, build and implement the e-business
infrastructure. Linux support has further enhanced IBM's e-business
infrastructure enabler capability. The company also offers finance and
leasing facilities to customers.

India is an important market for IBM and the company has been making significant
investments from time to time. Working within IBM Global Services you can have an
access to the company's worldwide quality assurance, world class training and project
management methodologies. IBM is one of the top MNC software services exporters in
our industry: recognized by the STPI, Karnataka Chapter, Dataquest and leading
industry associations like NASSCOM and MAIT. IBM supports its diversity commitment
through three principles:
1. Equal Opportunity - Commitment to maintain a non-discrimination and harassment-

free environment.

2. People Investment - Creating a level playing field for all to compete.

3. Work / Life - Helping employees balance the demands of their work and personal

lives.

IBM Today:

• The world’s largest information technology company

• The 8th largest corporation in the world
• Operations in more than 170 countries worldwide
• Nearly 60 percent of revenue generated outside the United States
• Year end 2003, IBM reported:
- $89.1 billion in revenue
- More than 320,000 employees worldwide

IBM Values:

• Dedication to every client’s success

• Innovation that matters : for our company and for the world
• Trust and personal responsibility in all relationships

The IT industry in specific has the challenge of retaining its employees. Hence, it is
imperative to understand the career aspirations and ambitions of each individual and
provide them the right direction. Employee career progression at IBM is well structured.
Each employee's performance during the year is assessed. Increment is awarded to
employees who have performed reasonably
Well during the year.
IBM is reasonably successful in retaining its employees through innovative methods.
The attrition rate is hardly 6% that is much less than the industry's average, 15 - 20%.
There are various schemes linked to performance, talent, and commitment. These are
 given in the form of cash benefits to the individual so that the employees are motivated
and have the spirit of competition.

The retention strategies adopted by IBM are:

• Cross-Platform Training

• Job Rotation

• Recognition of Talents

• Opportunity for International Experience

• New Technology Training

• Service Agreement

The main purpose of the HR Department at IBM is to ensure appropriate Recruitment,

Induction, and Training & Development of employees. It covers all the activities related
to recruitment, training and subsequent evaluation of the same.

THE HUMAN RESOURCE PRACTICES FOLLOWED AT IBM GLOBAL SERVICES

INDIA PVT LTD. ARE DISCUSSED BELOW:

RECRUITMENT PROCESS
IBM follows a methodology known as 'Behavioral Based Structured Interviewing’. It is
based on the principle that past behavior predicts future performance/success. Questions
reveal the candidate's past behaviors, so that they can be assessed against the
performance requirements, of the job they are applying for.
• Firstly, the hiring manager will call for the requirement. Then the resumes are
reviewed by the recruitment centre.
• Successful applicants go through a pre-selection interview that takes place by
using the Behavioral based structured interview. Here HR department along with
functional head shall scrutinize the applications and shortlist the candidates for
 inviting the candidates for further interview to ensure compliance with the
requirements specified in the job description.
• Then comes the face to face interview, where in the candidates build a good
rapport with the interviewer which helps in having control over the entire process.
• Finally, the applicant is evaluated based on his/her education, work experience,
necessary skills and knowledge base.
• Reference checks

IBM follows both External as well as internal sources of recruitment. As an internal

source, they have recently come up with a new Employee Referral Programme known
as 'Sampark'. It is a database in which employees are asked to put in their information
as well as their referrals such as their family members, friends, relatives, etc used as a
data base for future job requirements.
The components and Benefits of Behavioral based Structured recruitment are as
follows:
• Competencies- the knowledge, skills, abilities & values to be important to
succeed.
• Lead questions- each competency is assessed with lead questions asking about
specific job related experiences in which the candidate demonstrated behaviors
relevant to that competency.
• Rating scale- responses to the lead questions and probes are evaluated using a
standard rating scale specific to the particular competency.

Benefits:
1. Greater business efficiency and effectiveness by reducing the number of interviews
managers will need to undertake to make a hiring decision.
2. Selecting professional who can quickly perform at a higher level of competence in
the role they were hired for.
3. Promotes fairness in the selection process.
PERFORMANCE APPRAISAL
Appraisal is a continuous process in IBM. The employee is informed of his strengths
and weaknesses besides counseling. The necessary training needs are identified to
overcome the weaknesses.

Benefits of Performance Appraisal for IBM:

1. Create a learning environment
2. Develop an effective and motivated workforce to drive change
3. Have well informed HR system (training, career planning, succession,
remuneration)
4. Anticipate gaps and conflicts in human resources’ ability to achieve company goals.

Why Performance Appraisals?

1. Employees have a right to know how what they are doing

2. Appraisals should evaluate values, behavior, and performance.
3. The appraisal discussion is a developmental exchange.
4. The appraisal process should allow for goal setting to meet both business and
career / developmental needs

IBM has implemented the Rating Scale in its office on the basis of the following
parameters:

TRAINING

IBM believes that training can bridge the gap between the employee and the industry
needs. It encourages self-learning and knowledge acquisition by providing the requisite
facilities. The main purpose of the training program me at IBM is to provide adequate
and required training for personnel to ensure that they are equipped with skills,
competence and attitude for their performance. The main purpose and scope of training
program me is:
• To ensure that the organization has staff with the requisite skills to perform as
per the Service Level agreements agreed with the client
• To assign responsibility for the training of the staff to the trainer aligned to
process
• To conduct refresher trainings in accordance with feedback
• To ensure training is conducted in compliance with the training needs of IBM and
Client standards

It includes:
a) Communications Training
This is conducted along with process training. The trainees will go through a soft
skills module and Communication skills training
b) Process Training
This is conducted as per the standards set with the client.

Preparation of Training
• Procurement of Training material, handouts, slides etc
• Familiarization with the Product
• Arrangement of Logistics requirements

Method of Training
The various methods that are used in classroom training to enhance learning:
• Slide Presentations
• Computer based training
• Self Study packs
• Role plays and Activities
• One to one Coaching
• Call Listening
On the job training:

Individual Development plan

The development of their people is as critical to IBM's success as the development of
technologies, products, and solutions. Building expertise and aligning development
goals to IBM's strategy is the best way to increase contribution and value within IBM
and ensure market vitality and professional success.
The Individual Development Plan (IDP) is an action plan for expertise and career
development. It provides a framework to identify employee strengths, interests, goals,
expertise needs, and development activities.

Procurement Training:
The Procurement Learning Framework establishes a proficiency path for all
procurement professionals, whether new or transferred into Global Procurement. It
contains resources and recommendations for developing new skills in the procurement
profession, as well as enhancing current skills and increasing awareness.

Career Planning
Career planning is a part of IBM’s exercise as they are driven by process. The objective
is to balance corporate needs with individual aspirations and competencies.

Reaching Out
IBM believes that one of the most effective methods of attrition control is to "Reach Out"
to employees and communicate with them Company’s plans, vision and targets. Every
employee gets opportunity to discuss on the issues either to his immediate superior or
higher ups.

Training effectiveness
Trainee Feedback Form
• Trainer to get feedback from participants on a weekly basis / end of training
Trainer Observation Form
• Training manager/ co workers to give feedback on training delivery and content

Training Report- Feedback Tracker

• The trainer to prepare the training report and also update the Training.
Operations Managers regarding the outcome of training. The training report is
updated and sent across to relevant people.

The following areas are covered in training of employees (internal training organized as
identified in the training plan):

• Quality System, Policy, Procedures

• Quality Improvements
• Team Working and Motivation
• Use of statistical techniques
• Problem solving tools and techniques
• Skill up-gradation
• Inter Personnel relations
• Communication and presentation
• Safety and Precautionary measures
• Housekeeping and its importance
• Any other specific, work related areas

REMUNERATION
Remuneration refers to “wages paid by cheque”. Commonly called payroll. Includes
wages, commissions, bonuses, overtime pay, and pay for holidays, vacations and
sickness, payment for piece work, value of meals and lodging and other substitutes for
money.
IBM promotes a balance between career and personal life:
1. The company's professionals benefit from flex time and work-at-home
arrangements.
2. IBM provides numerous Employee Services, including:
• Family Care Services
• Adoption Assistance
• Life Planning
• Dependent Care Spending
• Scholarships
• Shopping tools and discounts
• The Employee Assistance Program (EAP) provides information, support
and free counselling
3. IBM promotes Community Programs
• The Matching Grants Program (for higher education, hospitals/hospices/nursing
homes, cultural institutions and environmental institutions), whereby IBM
matches employee contributions.
• Fund for Community Service - IBM makes financial and product grants to eligible
community organizations and schools where an employee is actively involved on
a continuing basis.

4. IBM provides $250 a year for some life planning activities such as health education,
fitness programs and financial planning services.

5. IBM provides a dependent care spending account for its employees to pay dependent
care expenses on a pre-tax basis.

IBM pays for performance and competitiveness:

Pay reflects the value of the job in the marketplace and the ongoing performance once
the individual starts. The Hiring Manager will make a decision based on whether the
individual's total cash compensation is competitive in the market, considering:
 Job/skill family, e.g. Project Manager, HR
Role and responsibilities
Potential Performance
Retention requirements

IBM invests significant resources to ensure they are delivering competitive pay. IBM
participates in more than 200 third-party salary surveys annually worldwide and
benchmarks their compensation programs to ensure that their professions are
competitive with the external marketplace. IBM also considers how they compare to
their competitors in the distribution of other types of cash compensation, such as
awards, stock options and benefits

IBM rewards employees through a number of programs:

1. IBM’s Employee stock option program (ESOP) targets employees with the
greatest potential for the most sustained impact on the business and those with
critical skill sets
2. Stock option grants are highly selective as options are a limited resource to avoid
dilution of stock value.
3. Many top performers are not awarded options, but still have differentiated
compensation via base salary and bonuses.
4. IBM has many awards program to reward and recognize individuals. Across IBM
there are six awards, ranging from $25 to $25,000, recognizing peer assistance
above and beyond job performance, innovation, knowledge sharing, outstanding
contributions, teaming and target achievement. There are numerous technical
awards available to individuals and teams focused on specific technical areas.
5. Recognition and award programs include:
• Delivery Excellence Award
• Thanks! Award
• STAR performer of the month award
• Golden Circle
 • 100% Club
• Leadership Award
• Professional Leadership Technology Exchange (PLTE)
• Appointment to IBM Academy of Technology

IBM offers a generous comprehensive benefits program:

1. IBM offers comprehensive health benefits on par with the best in the
industry:
• Medical, dental and vision coverage
• Employee Assistance Program for emotional well-being
• Future Health Accounts to assist in health care coverage after career at
IBM
• Long-term Care Insurance, Sickness & Accident and Long-term Disability
2. IBM also provides additional benefits:
• Employee discounts on IBM products
• Scholarships for children of IBM employees and retirees
• Life planning account – provides $250 reimbursement for expenses related
to health education, fitness and/or financial planning services
• Dependent care spending account -- covers tax-free day care costs for
both children and adults
• Discounts from service providers in banking and financial services,
automotive, travel services, wireless phones and consumer products
industries
3. IBM conducts continual benefits benchmarking exercises to stay competitive
The Open Door Policy is deeply ingrained in IBM and they intend to make it a
cornerstone of their human relations strategy. The fact that each Manager’s door is
open to any of his or her employees or to others who have a problem and want help
will be a key element in maintaining IBM's high standards of human relations.
 Re-training
Resource management group ensures an immediate assignment when an employee
returns after the completion of an assignment. If the employee cannot be assigned
with any work, then training is provided to him on latest technologies in line with the
business strategy.

The approach to HR development is based on the fact that approximately 80% of an

individual’s learning occurs through on-the-job experiences. These experiences
help build the skills and competencies needed as a business partner. Although we
encourage the use of both internal and external educational programs (e.g., project
management), we have made experience the foundation of the five-part model
adopted by IBM for use by HR professionals in assessing themselves and planning
their careers. The model and its accompanying tools are intended to help:

• Provide information and guidance on key HR developmental experiences,

• Match the development needs of current and future HR leaders to the right
experiences,
• Promote effective development discussion between HR professionals and their
managers/mentors.

As indicated, the HR development model is strongly related to the company’s overall

leadership model. Leadership at IBM is characterized by the ability to execute with
the speed, simplicity and teamwork needed to keep ahead of competition and
exceed customer expectations. Successful leaders excel in four key areas and
demonstrate a series of related competencies:

1. Focus to Win – Understanding the business environment moment to moment

and setting strategies for breakthrough results. Competencies include: Customer
insight, Breakthrough thinking, Drive to achieve
 2. Mobilize to Execute – Implementing with speed, flexibility and teamwork.
Competencies include: Team leadership, Straight talk, Teamwork, Decisiveness

3. Sustain Momentum – Obtaining lasting results that continue to grow.

Competencies include: Building organizational capability, Coaching, Personal
dedication

4. Passion for the Business – Being excited about what IBM technology and
services can do for the world.

CONCLUSION

Because of India’s economic, social and cultural complexity, there are a large
number of pitfalls that can plague unsuspecting companies. The problems
are immense: India’s bureaucracy can be a nightmare; the loose job market
means that finding talent and retaining it can be very difficult, and India’s
poor infrastructure can cause any number of problems.

Still, for IT companies looking to remain cost-competitive, India represents a

significant opportunity. Indians not only work for much smaller sums of
money than do other nationals, they often match or exceed other places in
terms of quality. Nevertheless, India’s job market is in constant flux, and
companies considering doing business there should devote adequate
resources to developing a sensible HR policy
DATA ANALYSIS & INTERPRETATION
Based on the study, the following analysis and data interpretation has been tabulated.
The data collected from the respondents were analyzed thoroughly and presented
in the form of charts and tables.

TABLE 1

FACTORS REQUIRED WHILE HIRING NEW EMPLOYEES

Factors No. of respondents Percentage

Attitudes 9 90%

Knowledge 7 70%

Skill 5 50%

Education 8 80%

GRAPH 1

10
8
6
4
2
0
Attitudes Skill

Inference: - According to the survey, it has been discovered that IBM companies are
looking for attitude, 80% for required minimum education. Companies now hire for the
attitude and train for the skills. Hence IBM do not stress on skills, but it does differ as
per the job requirements. The company felt that skills could be trained once the basic
attitude and educational background are ensured.

TABLE 2

EMPLOYEE REFERRALS

Employee Referralls No. of respondants Percentage

Yes 9 90%

No 1 10%

GRAPH 2

15
10
No Yes
5 c
0
1 2

Inference:- From the above table we can analyze that, employee referral is a good
source of internal recruitment. This is more effective because it is cost effective and it
builds qualified personnel. Moreover it is a belief that the referred individual is likely to
be similar in type.

Question

What is the company's recruitment and Selection procedures?

The survey analysis that, Recruitment & Selection process have become more
intensive. Selection for higher posts includes 2 to 3 levels of testing in skill, technical
and also reference is checked. Selection & Recruitment are all getting to be done in a
very professional way, as the company devise elaborate techniques and tools for
selection and orientation. More rounds of testing such as aptitude technical testing and
testing by HR for behavioral aspects are gaining ground.

TABLE 3

ORIENTATION

Do you provide
orientation for a new Forma Informa Individual Collective Total Percentage
employee? l l

Yes 5 2 0 2 9 90%

NO 1 10%

Total 10 100%

GRAPH 3

No ORIENTATION
10%

Yes
90%
Inference:- From the above table we can analyze that 90% in IBM provide orientation
and most of them follow formal method with structured programmes. These differ in
different companies. Orientation and induction training have gained importance for most
of the companies, while companies such as Motorola conduct only 2 hrs of induction
programme, before a new recruit taken up his duties, companies such as IBM
technologies have a 3 month compulsory training program.

TABLE 4
TRAINING PROGRAMME

Yes 8 80%

No 2 20%

GRAPH 4

Training

80%
60%
No. of
Respondents 40%
20%
0%
Yes No
Inference: - Training is a very important activity for most of the companies. Hence 80%
of the companies have training programmes of training such as on the job, off the job,
classroom-training, seminars.
• The managerial level and the first grade employee level training is different from
each other as per the knowledge, skills and responsibilities required.
• Training need assessment can be determined on organizational analysis- to achieve
company goals and objectives and Individual analysis- to enhance individual
personality to meet job requirements.
• The training calendar for the year, differ as per the training requirements for
particular projects. IBM had 5-6 training in a year.
• Training methods: - Case study method; Conference (Discussion); Lecture;
Business games; Films; Programmed instruction; Role playing and Sensitivity
training.

Question
Different resources are used for various types of training
IBM provide training to their employees use the following training resources:
• Training Expenses
• Overheads
• Efficient Trainers
• LCD's
• Audiovisuals
• Handouts
• Television slides
• Procurement of external resources
• Classrooms

TABLE 5
TRAINING EFFECTIVENESS
 Training Effectiveness
No. of respondents Percentage

FEEDBACK FORMS 6 75.00%

OBSERVATION 2 25.00%

TOTAL 8 100%

Inference: - From the above table, we can analyze that the company evaluate the
training effectiveness in the feedback forms given to them at the end of the session.
This form contains the attributes acquired from the training session. e.g., Knowledge
acquisition, Changing attitudes, Problem solving skills, Interpersonal skills, Knowledge
retention, etc. if the employees are satisfied then the training is a success. The
remaining 25% of the companies follow the observation method, which is the
Longitudinal or Time Series analysis and control groups for training effectiveness.

IT company follow certain systems, practices and procedures that are used to evaluate
Training effectiveness.

Measures of successful training and development

• Post-training evaluation which demonstrates sustained enhanced capability
• Quantification of current skills\competence levels across the organization • Ability
to demonstrate the link between training interventions and enhanced staff
capability and improved people/business performance
• The existence of an agreed personal development plan for individual staff which
reflects their own and the organization’s learning requirements
• Identification and achievement of benchmark standards
• Increased investment in training and development based on proven success.

GRAPH 5
•

EVALUATION OF TRAINING EFFECTIVENESS

80.00%

70.00%
75.00%
60.00%

50.00%

40.00%

30.00%
25.00%
20.00%

10.00%

0.00%
TABLE 6
1
EXPATRIATE TRAINING
feedback forms observation
Expatriate training No: of Respondents Percentage
yes 7 70%
 no 3 30%

total 10 100%

GRAPH 6

EXPATRIATE TRAINING

70%

70%

60%

50%
PE
R
30%
CE 40%
NT
A 30%
G
E 20%

10%

0%
yes no

Inference: - Expatriate Training is the preparation for an overseas assignment. It is the

training given to those employees who have been assigned to work abroad.The
Company provide opportunities for oversea projects, conduct this type of training to
manage the transition into a new culture, preparing them to live and work with others
who share different cultural values and attitudes.Kinds of Expatriate training: Cultural
Training; Language training; Practical training; Management development & strategy.

TABLE 7
APPRAISAL METHODS

Methods No: of Respondents Percentage

 Web Based System 3 30%
3600Performance
4 40%
Appraisal
Performance
2 20%
Management System
Rating Scale / Point
1 10%
Appraisal
Total 10 100%

GRAPH 7

APPRAISAL METHODS

Percentage

0% 5% 10% 15% 20% 25% 30% 35% 40%

Web Based System 360 degree Performance Appraisal

Performance Management System Rating Scale / Point Appraisal

Inference: - Table shows that 30% of the organizations use the web based
performance appraisal system to appraise the employees respectively. 40% use the
most famous 3600Performance Appraisal, 20% of the organization use the performance
management system and 10% rating scale point appraisal method to appraise the
employees.

Question
Need for performance appraisal
According to the study conducted in IT company, The company regard the following
multiple purpose of Performance Appraisal as the basic criteria:
1. Developmental uses: -
• Identification of individual needs
• Performance feedback
• Determining transfers & job assignments
• Individual development & strengths
3. Administrative uses: -
• Salary
• Promotion
• Retention/ termination
4. Organizational objective: -
• HR planning
• Determine training needs
• Formation/Evaluation of company goals & HR system
5. Documentation: -
• Validation research
• Document HR decisions
• Meet legal requirements
Question
In what way does an employee learn the full terms and conditions of
employment?
the IT company have a documented manual known as the Employee Handbook, which
contains the various HR policies & procedure of the company. It contains the codes of
conduct, rules & regulations that help the employees to understand and get introduced
to the company's HR systems.
TABLE 8

TYPES OF WORKING ARRANGEMENTS

Working Arrangements No: of Respondents Percentage

Day shifts 10 100%

Night shifts 7 70%

Flexible working hours 8 80%

GRAPH 8

WORKING ARRANGEMENTS

Day shifts 30%

Flexible working hours 80%

Inference: - From the above table, we can analyze that; the IT company have day
night shifts 90%
shifts. Since, the IT industry consists of call canters & BPO’s, these companies work on
UK based and US based work timing. Indians will have to work in the nights; hence we
have the night shift arrangement.

Day shifts 100%

Flexible working time arrangements are also provided in IT company in the form of
"annualized" hours. These essentially allow employees to choose, within certain
boundaries, their days and hours of work, with the proviso that they work a specified
number of hours in a year. This can also be calculated over a shorter averaging period,
be it on a monthly, biweekly, or other basis. Such arrangements combine elements of
flextime and compressed work weeks and can have the added advantage of reducing
recourse to overtime.

Lastly IBM have Flextime. It is an arrangement whereby employees can vary the
scheduling of their working hours within specified guidelines.

TYPES OF ALLOWANCES

Allowances No: of Respondents Percentage

HRA 9 90%

Conveyance Allowance 9 90%

DA 6 60%

Others 2 20%

GRAPH 9
 EMPLOYEE ALLOWANCES

300%

250% 20%

60%
200%

150%
90%
Inference: - The study reveals that the company do provide HR allowance such as Car
allowance, house allowance, rent free accommodation, medical, travel, etc. 60% of the
100%
companies provide Dearness allowance to their employees.

50% 90%
TABLE 9
NON-FINANCIAL REWARDS

0%
Non financial rewards No. of Respondents Percentage

Vacations 10 100%
credit cards 7 70%
Free Guest House 3 30%
Vehicle or Car Perks 8 80%

GRAPH 12
 NON FINANCIAL REWARDS

80%

30%
Vehicle or Car Perks
Free Guest House
70% credit cards
Vacations

100%

0% 20% 40% 60% 80% 100%

PERCENTAGE

Inference: - From the above table we can say that the company provide non-financial
rewards in the form of motivational rewards discussed in the next table.

TABLE 10
TYPE OF MOTIVATIONAL SCHEMES

No. of
Percentage
Motivational schemes Respondents

Reward for Outstanding Performance 10 100%

Annual/monthly Increment 10 100%

 Spot Awards 8 80%

GRAPH 10

MOTIVATIONAL SCHEMES
120%

100% 100%
100%

80%
80%
PERCENTAGE

Inference: - The IT company

provide the following
motivational programme which reward employee performance:-
60%
• Casual dress days
• Company paid professional memberships
• Employee teams to resolve issues and problems
• 40%
Company paid professional certification sponsorship
• Lunch with senior management
• Company paid seminar and conference attendance
• Free or company sponsored community service activities
20%
• Company sponsored training
• Motivational and team building activities

0%
 • Employee involvement activities
• Regularly scheduled employee meetings
• Employee recognition
• Reduced rate parking
• Holiday parties
• Paid time off
• Employee dinners
• Continuing education programs
• Performance appraisals
• Employee of the month programs
• Spot recognition programs

TABLE 11
WELFARE PROGRAMMES

Welfare programme No. of Respondents Percentage

Intramural Facility 10 100%

Extramural Program 9 90%

Educational Assistance 4 40%

Others 3 30%

GRAPH 11
 W ELFARE PROGRAMME

30%

others
40%
Educa

90% Recre
Inference: - From the above table we can say that, a the IT company have welfare
facilities inside the organization and outside the organization. Intramural facilities are:
Cante
• Conditions of work environment 100%
• Conveniences
• Worker’s health services
• Women & child welfare
• Worker’s recreation
• Employment follow up
0% 20% 40% 60% 80% 100%
• Economic services
• Worker’s education PERCENTAGE
Extramural Facilities provided by the companies are :
• Water, sanitation, Waste disposal
• Roads, lighting, parks, recreation, playground
• Recreation
• Transport
 • Bank

TABLE 12

GRIEVANCE REDRESSED PROCEDURE

Grievance No. of Respondents Percentage

Yes 8 80%
No 2 20%

According to the study conducted,the company has a well laid down procedure for
handling employee grievances through committee systems Some companies follow a
system under which employees can directly meet the Chief Executive on a scheduled
day to present their grievances and to seek on-the-spot solution thereof. The redressal
of staff grievances are coordinated by the concerned executives, who send a monthly
progress report on the number of employees’ grievances received and redressed etc.
for compilation, computerization and monitoring.

GRAPH 12

GRIEVANCE REDRESSAL COMMITTEE

20%

Yes
No

80%
RECOMMENDATIONS & SUGGESTIONS

1. It is recommended that IBM should hire employees considering attitude, for those
who have required qualifications and train them according to the need.
2. It is suggested that company should consider fresher for entry-level positions and for
that campus recruitment are the major source.
3. It is recommended that company should give more importance for employee
referrals, which can reduce the cost of recruitment. At the same time can motivate
the employees through rewarding them for valuable references.
.
4. It is suggested that company should provide rewards for long year services.
5. It is recommended that company should invent some innovative HR practices like
Hughes have 4 E’s.
(a) Empowering – employees by providing them maximum access to key
information, interfaces and resources, an ability to share their views and
impact their own as well as the organization’s future.
(b) Enabling people to manage their jobs and personal transactions smoothly,
speedily, efficiently and independently.
(c) Energizing the organization’s internal environment with a positive energy
in a way that makes each and every employee feel energized and charged up
about life too!
(d) Engaging employees so that they develop a sense of bonding with the
company, its value and ethos as well as its constituents Satyam says its
innovative HR practices as rewarding for the valuable suggestions provided
by the employees where anybody can provide suggestions.
 CONCLUSION

1. Since the human resources is the most important resource in the knowledge
industry, HR activities are very alive and hectic in the IT Industry. Perhaps in no
other industry, so much attention and thought has gone into Human Resource
Management as in the IT industry.
2. At the recruitment for the lower levels attitude seems to be more important – as
company felt that skills could be trained once the basic attitude and educational
background are ensured.
3. Employee referral is becoming a key recruitment focus. Employees get rewarded if a
good referral gets selected. This acts as both a motivation for the employee, and a
cost reducing measure for the company. Where the cost of recruitment by other
means is more than the reward that would be paid to the employee.
4. Innovative methods of performance appraisal, Training and new approaches of
compensation are continually being done to reward and retain the knowledge
worker.
5. Motivation is an important concept that has been receiving considerable attention
from HR managers.
6. In short, acquiring talent and retaining talent is occupying the mind of the HR person,
and HR activities are vibrant in the IT sector.
 BIBLIOGRAPHY

Primary data was collected through a structured questionnaire that was given to the
HR personnel of selected IT company that is IBM.

Secondary data was collected by the following methods-

• WENDELL WELL AND FRENCH CECIL

Organizational Training and Development
Tata McGraw Hill
2002 Edition

• COMPANY WEBSITES, REPORTS AND MANUALS.

Websites:-

• www.ibm.com/in/en/

Search engines:-

• www.google.com
• www.yahoo.com
 QUESTIONNAIRE

Dear Madam,

I, Gurpreet kaur gill doing my final year MBA from AGBS, CHANDIGARH.
I am currently doing my Project Work with respect to “Comparative study Of HR
Practices of IBM”, as a part of my curriculum. I would be obliged if you could spare a
few minutes of your valuable time. The information provided will be kept confidential and
used for academic purposes.

• Name of the Organization

…………………………………………………………………..
• Name of the Respondent
…………………………………………………………
• Designation …………………………………..

1) What is/are the most important factor/s that you look into, while hiring a new
employee?
a)……………………………………………………………
b)……………………………………………………………
c)……………………………………………………………

2) Do you follow employee referrals?

………………………………………………………………

3) What is the company's recruitment procedure?

………………………………………………………………
………………………………………………………………
………………………………………………………………
4) Do you provide orientation for a new employee?
a. Yes [ ] b. No [ ]

If yes, what type of orientation?

a. Formal [ ] c.Informal [ ]
b. Individual [ ] d. Collective [ ]

5) Do you provide induction training to your employee ?

a. Yes [ ] b. No [ ]

If Yes:
• How long
………………………………………………………

• Topics Covered
……………………………………………………………

6) Do you provide Expatriate training?

Yes [ ] No [ ]

If yes what kind of training programme?

……………………………………………………………………………………

7) How often do you have Job Rotation? Where are these employees shifted to?
………………………………………………………………………

8) What are the allowances provided to the employee ?

a. HRA [ ] d. DA [ ]
b. Conveyance Allowance [ ] e. Uniform Allowance [ ]
c. Others ………………………….

9) Do you provide any of the following non financial rewards to the

employee?
• Vacations [ ]
• Credit cards [ ]
• Free Guest House [ ]
Exclusive Club Membership [ ]
• Vehicle or Car Perks [ ]

10) What type of motivational schemes exists?

a. Reward for Outstanding Performance [ ]
b. Annual Increment [ ]
c. Spot Awards [ ]
d. Others ……………………………………………

11) What kind of welfare program exists?

a. Canteen Facility [ ] c. Educational Assistance [ ]
b. Recreation Program [ ] d. Others ……………………

12) Do you have any grievance redressed procedure in your organization?

a. Yes [ ] b. No [ ]