CHAPTER -1

NATURE AND SCOPE OF STUDY

SR. NO. TOPIC PAGE NO.

1.1 INTRODUCTION 1

1.2 PROBLEM STATEMENT 6

1.3 RELEVANCE OF STUDY 7

1.4 OBJECTIVE OF STUDY 9

1.5 JUSTIFICATION OF STUDY 10

1.6 WORKING DEFINITIONS 11

1.7 HYPOTHESIS 12

1.8 APPROACH OF THE STUDY 15

1.9 LIMITATIONS OF THE STUDY 19

1.10 SUMMARY 20
 CHAPTER -1

NATURE AND SCOPE OF STUDY

1.1 Introduction

Human resource development was task oriented and organized efforts for
strengthening the potential of employee, diversification of capabilities, grooming
alternate skills or consideration of him. The role of human resource management has
evolved in recent decades. HRM no longer just perform a supportive administrative
function, relating to the organization's human resource transactions that are essential
to its day-to-day operations but also encompasses those activities designed to provide,
motivate and coordinate the human resources of an organization. The human resources
of an organization represent its largest investment. HRM is also, in many
organizations, a strategic function, where human capital is explicitly and prominently
factored into the organization's corporate planning and strategy decision-making
processes. With this comes increasing recognition that senior HR professionals need to
engage in corporate strategic discussion, as adviser and partner of the executive
management team. At the same time, it behaves HR professionals to ensure that
human resource transactions are completed competently and efficiently, in accordance
with the organizational policies. In short human resource management is a process
brining people and organization together so that the goals of each other are met.

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Over the years, highly skilled and knowledge based jobs are increasing. This leads to
future skill mapping through HRM initiative. In today's world organizations could
survive only by ensuring a competitive approach. A balanced HRD policy is the most
essential for any organization. At the micro level, apart from conductive environment,
job satisfaction, role clarity and job effectiveness are important contributors to the
excellent in working of any organization. The fusion of positive approach to human
resource strategies and up scaling of capacities, capabilities and caliber of the
employee could create healthy environment in the organization.

The traditional practice to manage human resource as an asset for organization was
hardly seen. They were holding the traditional view that managers are bom and not
made. There were also some views that training is a very costly affair and not worth.
Organizations used to believe more in executive pinching. The human resource was
treated like other assets of organization without considering the fact that it is the only
active and vibrant factor, which influences the efficiency of any organization. The
individuality and sensibility of this resource is hardly appreciated. Larger emphasis
was on physical movement, regularity and conduct of employee.

But now the scenario seems to be changing. In due course organizations started
realizing that the human resource is not only a cog in the wheel of organization but it
is most sensitive and great contributor to the effectiveness and progress of
organization. Organizations understood that this human force is capable of realizing
and experiencing the corporate goals and could devise ways and means of achieving
them effectively. The human factor has inherent capabilities of equipping in enhancing
its skills, knowledge and capabilities besides attitude for the long term sustainability of
the organization, creation of conductive environment at different levels and work in a
team spirit solely from the organizational point of view. The changing internal
envirormient in organization; call for better understanding of human resource
management. The culture or climate of an organization is made up of traditions,
values, habits and interpersonal relationships at work therefore major elements of
HRM strategy and functions can be related to organizational culture and the future

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direction it want to take'. Indian Organizations have realized the importance of
corporate training due to increasing competition, globalization of business,
technological changes and unstable market conditions. Training is now considered as
more of retention tool than a cost. The training system in Indian Industry has been
changed to create a smarter workforce and yield the best results.

1.1.1 Training and Development

Training, education and development are three terms frequently used. On the face of
it, there might not appear any difference between then, but when a deep thought is
given, there appears some differences between them. In all training there is some
education and in all education there is some training. These two processes, training
and education; cannot be separated from development. Training and Development
Process involves developing appropriate skills, competence and attitude in people at
different levels of the organization. Besides the principal objective to make sure the
availability of a skilled and willing workforce to an organization, there are four other
objectives: Individual, help employees in achieving their personal goals;
Organizational, assist the organization with its primary objective by bringing
individual effectiveness and Societal ensure that an organization is ethically and
socially responsible to the needs and challenges of the society . Training is an act of
increasing knowledge, skill of an employee for improving his performance on the job.
Training is concerned with imparting specific skills through a sequence of
programmed behavior to develop and rise within organization .

^Michael Armstrong, 'A handbook of Human Resource Management Practice', 10*

Edition,Kogenpage,London,2006
^ K. Aswathappa, 'Human Resource Management', S"' Ed., TATA McGRAW
HILL,2008
^Singh N.K., 'Human Resource Management', Excel Books, New Delhi, 1999

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Earlier the concept of training was based on observation-work-guidance pattern and
role of educational qualification was not considered basic criterion for employment.
Faith and loyalty were the foremost considerations. Person who got employment was
asked to observe the activities of his seniors and under his guidance he initiates
actions. It was the on the job training method and shortcomings were pointed out with
mild punishments. Now a day's globalization and liberalization is pushing business
organizations towards perfect competition. There is no doubt that a well trained and
developed employee will be a valuable asset to the organization. Hence the dimension
of Training and Development are also changed. In such a situation the maximum
result is the minimum requirement and survival of the fittest manager is the rule of the
game. Such an organization needs the fittest managers who are sharp enough to
perform the best. This calls for high competency, which may not be readily there in all
managers. The competency gap could be narrowed down with the help of well-
developed training and development programs.

Brings in new
Ideas
Brings in New Participative
Ideas Culture

#
% #
Boosts up Training and Changes
Productivit>' Development Attitude
17
J0 % .
Enliances Better Human
Performances Relations
Improved
Skills

Figure 1.1: Influence of Training «& Development.

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The term ' Development' has a broader meanmg and it aims to improve overall
personality of an individual. Development is less skill oriented but refers to theoretical
and conceptual ideas 4 .Development process helps employee to learn, grow and
improve his abilities to perform variety of roles within and outside the organization.
Training and Development differ from each other in terms of their obj ective and
consequently, in terms of their content.

1.1.2 Indian Economy and IT Revolution

India dreamed to become superpower by 2020. India is one of the fastest growing
economies in the world. Indians are enjoying the all round growth and they are very
much ready to take their rightful place in the new world order. The growing India
should emphasis on Training and Development of human resources in all sectors i.e.
corporate business, Services, Industry, Health services, Education, Agriculture,
Entertainment and many more. Indians have already experienced the "Green
Revolution" and "White Revolution".

Now we are experiencing the "1.T. Revolution". It gave the new face to modem India.
The pace of growth of software industry is tremendous. The structure and functions of
software industries are largely different than the conventional organizations. The
inputs for this industry are changing with a great pace which leads towards the rapid
changes in the Training and Development (TD) Practices. The training inputs do not
remain constant because of the dynamic pace of Software Industry. Obsolescence will
occur fast as there will be constant gap between the job requirements and the
individual capabilities. As such there is a need of greater emphasis on acquainting the
Trainers and Human Resource Development (HRD) professionals with emerging
approaches and concepts. A proper training process with following steps has to be
adopted by HRD professional.

4
Badi R. V. ,' Human Resource Management ', Vrinda Publication, Delhi,2006.

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 1. Organization Vision and Plan.
2. Assessment of training needs.
3. Setting training objective and Developing training policy and plan
4. Designing training programs.
5. Implementation of training programs.
6. Evaluation of results and feedback of action.

The pace of Software Industry is tremendous. Human resource is the major resource
for any software industry. Therefore major human resource function in software
industry is basically buying, borrowing and building talents^. Organizations have to
spend a lot of money on the Training and Development Practices. Since the
technology up gradation is fast and costlier, the expenditure on Training and
Development Practices is also increasing. The innovative practices in Training and
Development are the need of Software Industry. At the same time these Training and
Development Practices have to be cost effective. We are aiming to address all these
issues in proposed research.

1.2 Problem Statement

Software Industry is one of the rapidly growing sectors in our economy. The core
strength of this sector is Human Resource. Therefore emphasis has to be given on
adopting policies of HRD through Training and development. The structure and
ftinctions of software industries are largely different than the conventional
organizations which demand a different rule of game to become more effective. Ways
of attracting and retaining talent trough appropriate HR initiative thus become crucial
issues as organizations battle it out to lure 'creme de la creme' in circulation.

PattanayakBiswajeet, 'Human Resource Management', 3"'Edition,PHI, New

Delhi,2005.

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Hence the problem statement is "New Trends in Training and Development Practices
in Software Industry in Pune City- A Study".

1.3 Relevance of the Study

Present study is relevant on following accounts.

1.3.1 Academic Relevance

One of the most important concepts in HRD is Training and Development. In spite of
so many changes in socio economic and technological changes, importance of Human
Resource is not reduced^. On the contrary it has acquired further higher status due to
growing importance of skills, knowledge and competence.

No organization, whatever its purpose, cannot survive without developing its Human
Resource and hence learning. Training and development become integral part of
organizational excellence.

Software Industry is one of the rapidly growing sectors in our economy. The core
strength of this sector is Human Resource. Therefore emphasis has to be given on
adopting policies of HRD through Training and development. From this point of view
the role of Training and development policies has enhanced considerably. The study
becomes significant as every organization emphasis on its HRD. From this point of
view relevance of research can be justified as follows -

a. Every organization develops its own techniques for HRD. Innovation is a

key to HRD. New methods of Training and Skill development are
identified and introduced. How these methods work in given
environmentand what is their role is the specific aspect of study. This study
will help to identify silent features of innovation in Training and

^Frances and Roland Bee, Training Needs Analysis and Evaluation.,1994

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 development adopted by software industry. It will also help to know what
are constituent of industry specific HRD techniques.
b. This study shall also help to examine critical aspect of Training procedures
and their implications on organizational development.

1.3.2 Industry Relevance

Software Industry is passing through a phase of growth and maturity. The

initial momentum of rapid development is now slowly moderated due to
various competitive and other external factors'.How industry looks at Training
and development policies can help to know approach of industry towards
manpower development, skill and excellence enhancement.

a. The structure and functions of software industries are largely different than
the conventional organizations which demand a different rule of game to
become more effective. Ways of attracting and retaining talent trough
appropriate HR initiative thus become crucial issues as organizations battle
it out to lure 'creme de la creme' in circulation. The industry specific
benefit of study is to identify limitation in the prevailing policies and offer
corrective measures to improvise the existing Training policies.

1.3.3 Research Relevance

Every experiment and study offers new insights. It becomes a corrective policy
mechanism to identify drawbacks and weaknesses in prevailing mechanism and helps
to correct the system by using suitable inputs. A research is a understanding of
prevailing phenomenon and offering corrective solutions. From this point of view
study has great research relevance. It can be stated as follows-

•7

Government of India, Department of Information Technology, Ministry of

Communications & IT, Task Force Report - 2009.
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 a. Many innovations are made at unit level in terms of HRD and many
activities of skill development. In certain cases they are more cost
effective, industry specific and utility oriented.
b. Research in industry specific area like Software Industry is also helps to
know the redundant aspects of prevailing system and what efforts can be
made to overcome it.

1.4 Objectives of the Study

Well-developed training programs are the important instruments to change the

mindsets of the people. Training programs purport to improve job performance,
minimize conflicts, prepare individuals for promotions and to accept organizational
changes, facilitate understanding of organizational goals and attain allied behavioral
objectives. All this is possible only when different phases of the program turn out to
be effective.

The proposed study has following objectives:

1. To understand the Training and Development Practices adopted by new
age software organizations.
2. To identify traits qualities those are enhanced through Training and
Development Programs.
3. To examine area of emphasis considered more important by the
organization under study.
4. To find out new trends in Training and Development Practices and
introduction of new techniques in Training and Development Practices.
5. To make a cost benefit analysis of Training and Development Practices
adopted by organization under study.
6. To assess the response by the employee to such Training and Development
Practices.

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1.5 Justification of the Study

The objective of the research can be justified on following grounds.

1. The proposed study is an enquiry as to know the role of Training and

Development in enrichment of Software Industry.
2. Software Industry is a new kind of business organization with specific features
and requirements which cannot be met unless and until the Human Recourses
are trained and developed to satisfy the expectations of Software Industry.
3. Software Industry is basically an institution where Skills, Competence and
Attitude to accept changes has become very important ingredient of work
culture. These ingredients cannot be inculcated without appropriate Training
inputs.

Following parameters are considered for evaluation of training methods.

1. Nature of training programme
2. Duration and frequency of training programme
3. Cost and investment involved in training
4. Potential benefits of training programme
5. Expected changes in terms of attitude and skills
6. Impact of training on employee attitude and behavior
7. Acceptance level of training
8. Utility and applicability of training
9. Limitations of training as identified by beneficiaries

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1.6 Working Definitions

Considering nature of study, following terms are defined to conduct the research
process in effective manner.

1. Training
The term training is defined as every activity, system implemented for
development of human resource through systematic plan and well
constructed program either in house or by external agencies.

2. Development Practices
The term development practices leads to development of skills, caliber,
competence and hands on experience as well as insight of people working
in a particular industry or business activities such as Information
Technology.

3. Software Industry
The term software industry means and includes that part of computer
programming activity that is traded between software-producing
organizations and corporate or individual software consumers. The traded
software industry consists of three main sectors: programming services,
enterprise software products, and shrink-wrapped software products.

Above definitions limits the scope of study in following manner.

1. The study is restricted to examine specific training and human resource

development policies.
2. The study covers in house as well as external Training Program.
3. It pays specific attention to salient features of Training Program.
4. It identifies various innovations, developments and variables in different
software industry for HRD.

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1.7 Hypothesis

The concept of Training and Development is related with three aspects of work
culture. These aspects are as follows:
1. Competence Enhancement
2. Skill Enhancement
3. Attitudinal Changes
Training program is not only bunch of inputs to improve Competence and Caliber but
it also emphasis on change in Attitude and Willingness to work in a specific work
Q

environment .From this point of view every industry and every unit in industry
requires specific tailored programs. These Training programs should satisfy basic
needs of employees and expectation of institution. The questions before the
Researcher are: Whether Software Industry design and structure Training programs
according to its specific requirement? Whether Software Industry introduced new
Concepts and Techniques to meet the specific Training and Development needs of its
employees?

From these points of view following hypothesis are considered as premises of research
work.
HI. The training needs of IT employees are industry specific and require
specific training inputs to enrich Skills and Qualities of the employees.
H2. The Software Industry introduced specific need based Training and
Development Program for the benefit of the employees.
H3. The Software Industry has adopted innovative approaches to train its
employees in terms of Skills, Caliber and Attitude enhancement.
H4. There is a positive association between cost of Training and benefits
derived from the Training Programs.

^Mamoria C.B., Gankar S.V. (2008), Personal Management, Text and Cases, 2^"'
Edition, Himalaya publishing house, Mumbai.

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Present study deals with an enquiry into prevailing methods of training adopted by
select software industry. For this purpose researcher has taken above four premises.
They are justified on following ground.

The purpose of training programme is to enrich quality of employee, develop

necessary skills and formulate positive attitude. From this point of view the researcher
has taken premise that employees in working in Software Industry have specific
training needs. Without enriching skills, qualities and caliber of employee. Software
Industry can't maintain and enhance the quality of its employee. In order to access the
hypothesis HI following parameters are laid down by the researcher.
1. Software Industry is specialized business segment.
2. Software Industry requires peculiar type of skills
3. Without having well defined set of qualities employee cannot perform upto
the mark.
4. Software Industry requires certain technological, professional and
managerial skills.

Software Industry is a specialized industry where emphasis is on technical skills and

knowledge input. Unless and until software professional possesses such kind of
expertise, they can't deliver desired performance. Hence training becomes essential
input for skill advancement. In order to evaluate statement of hypothesis H2 the
researcher has laid down certain parameters.
1. Software Industry requires specific skills.
2. The skill set of Software Industry is different fi"om others and specified for
Software Industry.
3. There are well defined needs of Software Industry in terms of employee
caliber and competence.
4. Special efforts are required to develop employee caliber in Software
Industry.
5. Well defined Training Programs can develop skills of employees in
Software Industry.

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Every industry has to changes its training approach considering change in industry, job
profile and business environment. The change in Training Program is the result of
changes in the overall job profile and industry's approach towards employee
development. Software professionals are trained as knowledge workers. They are
highly educated professionals who exhibit caliber, competence, and job performance.
In order to retain such employees, conventional methods of training are not suitable. It
is necessary to offer training by innovative and industry specific methods. In order to
assess the validity of premise H3, researcher has collected data from different software
organizations. The data is collected on following parameters.
1. Conception regarding Job.
2. Approach towards Training.
3. Assessment regarding prevailing Training Program.
4. Utility and benefit of existing training system.
5. Strength and weaknesses of Training methods.
6. New methods of training and employee development adopted by
organization.
7. Utility of such new methods of training.
8. Benefits derived from new methods of training.
9. Effectiveness of such innovative methods of training.

Expenditure on training is often considered as investment. Trained employee is often

considered as human asset of organization. Naturally alike any other asset, they should
give desired yield or returns. From these point of views investment in training is not
merely a cost but amount spent on building an asset. Hence there has to be arelation
between benefits derived fi-om an asset and investment in the asset.In order to assess
validity of hypothesis H4, the researcher has collected data from Training managers
and HR managers of various IT units. The information is collected on following
parameters.
1. Cost of training
2. Per employee cost of training
3. Per training program cost

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 4. Total cost of Training
5. Total budget allocation for training
6. Assessment of cost and benefit of various Training Program

1.8 Approach of Study

1.8.1 Methodology

Approach of research work means the manner in which study is conducted.

Considering the nature of study the research is divided in following phases-
1. Selection of business units.
2. Identification of Trainees.
3. Identification of Trainers / HR managers
4. Designing the scope of study.
5. Developing the instruments of study.
6. Conduct the pilot study.
7. Testing reliability and validity of instruments and data.
8. Restructuring the instruments.
9. Selection of samples.
10. Collection of data.
11. Interpretation of data.

Approach of study focuses on collecting first class, fine quality original data from the
respondents. Researcher identified hindrances in data collection and removed
hindrances. Developing appropriate repo with industry and respondents, elimination of
faults in data input and refining of data is also done.

The pilot study was conducted by selecting two software industries - one public and
one private. Similarly 20 respondents also contacted for this study with equal
representation to each unit.

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The respondent were given questionnaire and data schedules to know their opinion as
to quality approach and direction of data input. The suggestions rightly incorporated
and questionnaires were redesigned.

For reliability, the instruments were tested and improper and ill framed questions and
statements were removed after discussion with employees and HR managers. For the
purpose of validity 5% level of significance is considered as tolerance limit.

1.8.2 Universe of Study

1. For the purpose of proposed study universe is defined as territorial

universe. The territory for the purpose of study is restricted to Pune City
only.
2. In terms of population, universe is considered as all Public and Private
limited Software companies.
3. In terms of respondent population, universe is considered as all the ftjll
time regular employees in software industry under study.

1.8.3 Sample of Study

Considering nature of study sample is divided in following areas.

1. Organizations: Researcher shall study 10 Private and Public limited
software companies.

2. Respondent: In terms of employee, Researcher shall study Managerial staff

and Technical staff to access their Training needs and Training program
offered.

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In order to know Quality, Duration, Affectivity and Utility of Training program,
Researcher shall study 20 Trainers from various organization to study the data
regarding above parameters.

Table 1.1: Sample of Study

Sr. No. Name of Particulars Sample Size Method

Sample

I Organizations HR Persons from 20 Questionnaire

Software
Companies
2 Respondents Managerial and 200 Questionnaire
Technical Staff
3 Resource Trainers 20 Questionnaire /
Persons Interview
4 Training Training providers 10 Questionnaire /
Institutions Interview

1.8.4 Types of Data Inputs Collected

Considering the nature of the study researcher has collected both the Primary and
Secondary data.

Primary Data: The term primary data means and includes various data input
collected from respondents and organization under study. The scope of this
data is related with opinion, views, ideas, systems and practices regarding
HRD practice. Therefore primary data is collected from primary classes of
respondents such as-

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 1. Employees and Managers
2. Training Officers
3. HR Officers
4. Trainers

Justification of classes of respondents:

Table 1.2: Justification of Respondent Classes

Sr. No. Class Kind of Data collected Justification

1 Employees Opinion, views and To understand extent of

responses towards utility, effectiveness and
Training method purpose of training.
2 Training To know prevailing To understand
Officers / policies regarding organizational goal and
HR officers training and HRD philosophy, and its
practices reflection in prevailing in
HR and Training and
Development policies.
3 Trainers To identify various To know what are the
methods of training methods and system
adopted for improving adopted for offering
skills, caliber and training programs and
competence change of attitude towards
organization. 1

Secondary Data: The term secondary data means and includes various
supplementary sources justifying nature and type of primary data collected. It
also helps to know opinions and views of different experts on prevailing topics.

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 The principal secondary source include-
1. Books, magazines, periodicals etc. from institutional libraries such as
University/ College libraries, individual collection of books.
2. Reports published by various government organizations, NASSCOM,
etc. have been referred to get information about software industry in
India.
3. Training centers and the formal study material or related literature has
been referred to get information about the training culture prevailing in
organizations.
4. Electronic media - use of internet websites, CDs, specific computer
packages, e-mails, audiovisual cassettes etc. also provide great help.
Email facility has been used as many of the respondents preferred to
send their responses through e-mail, as per their convenience.

1.9 Limitations of the Study

1. The study is limited to the organizations that are located in and around
Pune City.
2. The study is limited to the role of Training in overall development of the
employee and the organization in which he is working and does not include
other factors.
3. The study may not reflect the overall impact of effectiveness of Training
and Development on the organization's behavior immediately since it is a
long term process.

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1.10 Summary

The role of human resource management has evolved in recent decades. Organizations
have reaHzed the importance of corporate training due to increasing competition,
globaHzation of business, technological changes and unstable market conditions.

India is a global leader in software industry. Software industry is technology based

industry. It thrives on new technology hence human resource is it's the major resource.
Therefore human resource ftinctions such as training and development do have
significant importance than any other industry. Effectiveness of human resource is a
deciding factor in organizational competition, which leads to talent building process in
software industry. Since software industry has global presence, behavioral training has
also gained importance.

Skills, competence and attitude to accept technological and cultural changes are
important ingredients of work culture. These ingredients cannot be inculcated without
appropriate Training and Development inputs. Hence the study will enable us to
understand significance and need of training process. It also finds new trends in
Training and Development practices and suggest a suitable model on training and
development for software industry.

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