A STUDY ON

Human Resource Management in IT Sector in

India A status report

PROJECT REPORT

SUBMITTED AS COURSE PROJECT OF HUMAN RESOURCE

MANAGEMENT
Under the guidance of
Dr. Mousumi Sengupta

M.A. (TVU, U.K.), GradIPD (IPD, U.K.), Ph.D. (IIT,

Kharagpur) Ex-Chairperson - SDM Research Center for Management Studies
(SDM RCMS)
Ex-Editor-in-Chief- SDMIMD Journal of Management

By

Section B, Group 6 (Batch 2021-2023)

21096 PRATEEK MISHRA

21097 NITHIN M GOWDA

21098 PRIYADARSHINI N C
Date of Submission:
21099 PURBA MUKHERJEE 20/09/2021
21100 R SRINIVAS PRASAD
21101 RAHUL NUNNA

21102 RANJAN KUMAR

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 TABLE OF CONTENTS

ACKNOWLEDGEMENT:.............................................................................3
INTRODUCTION..........................................................................................4
LITERATURE REVIEW...............................................................................5
HCL.................................................................................................................6
MINDTREE:.................................................................................................11
TATA............................................................................................................14
CONCLUSION.............................................................................................18
REFERENCES:............................................................................................19

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 ACKNOWLEDGEMENT:

"The strength of the team is each individual member. The strength of each member is the
team." – Phil Jackson

This Project report was made successful with constant effort and coordination by team
members of group 6.

We would like to express our special thanks of gratitude to our beloved guide
andProfessor, Dr. Mousumi Sengupta, who gave us the golden opportunity to work on
this beautiful project having the topic Human Resource Management in IT Sector in
India. This project helped us do quite a bit of Research and we got to learn lot of things
about the industry as well as the company. The amount of knowledge we gained from
regular lectures and our experience while working on the numerous case studies was key
in making the report possible.

We would also like to thank our teammates who helped us in completing the project
within the given timeframe.

A final and a hearty note of thanks to all the people who are involved incompleting the
project, directly or indirectly.

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 INTRODUCTION:

The HR (Human Resources) department is a gathering who is liable for dealing with the
representative life cycle (i.e., selecting, recruiting, onboarding, preparing, and terminating
workers) and managing worker benefits. Growth of technology has its impact on Human
resource. Ever-growing tech-industry around the globe has created the need for HR to adopt
the dynamics of IT industries and live up to the level of organizational goals and help it to
sustain in the market for the longer period. It has become important now for Indian
technological organizations to adopt the ongoing changes and help the workforce to learn and
upgrade their technical working knowledge to cope with the organizational activities
productively and efficiently.

The success of any program is linked directly with the human resource and
technological advancement that they own and as HR department is the bridge to fill the gap
between organization and employees it is necessary to own a proper Human Resource
Management to guide the employees to work for the attainment of organizational goals
because at the end, business performance the only aspect that matters and HR sector is
directly linked with the success or failure of the organization. HR sector itself has been
experiencing a lot of changes because of the evolution of technology like change in the
systems used by HR a decade ago, seems outdated today. It has become important to the HR
personnel to learn the dynamic systems first and then finding a solution to the existing
workforce problems. Organizations have to invest on both technology and human force today,
to make the business run smoothly and Human Resource management is the tool that connects
people to the organizational goals along with preparing them to withstand the technological
changes.

Following are the three IT companies for which the analysis is done:

1. HCL Technologies is an international technological company and consulting firm,

established in Noida, Uttar Pradesh, India.

2. Mindtree Ltd. is a multinational Indian company with headquarters in Bangalore that

specializes in information technology and outsourcing services.

3. Tata Consultancy Services is an Indian multinational information technology

services and consulting company with headquarters in Mumbai, Maharashtra, India.

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 LITERATURE REVIEW:

Human Resource Management has begun to accumulate significance with the emergence of
human driven divisions, for example, Human Capital Management (HCM) and HR metrics,
including HR analytics. Currently, IT mechanical parts and the board cycles and practices are
becoming increasingly more integrated with respect to the viability and impact of human
assets.

As written by Emanuele Gabriel Margherita, industry's human resources department

studies practices for the development of its employees. Along the assembly line, companies
like HCL, TCS, and Mindtree introduce new digital technologies—including Big Data,
robotics, and the Internet of Things. Technology like this supports their activities. According
to some studies, enabling Industry technologies for HR roles has various qualitative benefits.
In many organizations, though, there is a challenge in preparing traditional manufacturers for
this role, requiring a shift in training and layout of job roles, particularly for qualitative
aspects of human- computer interaction and work organization.

Ilenia Bua asserts that traditional manufacturing workers do not possess the necessary skills
to manage complex technology. It is as a result rare to find a study that illustrates the manner
in which an operator is developed. In an organization, human resources management is
responsible for such challenges, such as retaining employees and ensuring a qualified
workforce. Human resource practices are provided to develop workers for their role.
Therefore, we carried out a literature review to summarize the practices used by human
resources to improve the Company's development. The project focuses on the evolution of HR
roles in Information Technology and how the Covid has affected business processes,
including recruitment, training, performance appraisals, job design, and compensation. We
concluded by proposing a detailed study on conceptual evolution that has occurred over time.

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 HCL:

Introduction of the company:

Founders: Shiv Nadar, Arjun Malhotra

Founded on: August 11, 1976

Location of the Headquarters: Noida, India

Vision of the Company:

Human resource Vision of HCL technologies is to be a pacesetter in offering the fine degree
of IT answers and offerings. Endeavour to increase the customers’ expectations and create an
administrative centre wherein all employees thrive in collective environment that honours
excellence

Mission of the Company:

1. Conduct business in accordance with the ultimate standards of honesty and integrity.
2. Require a portfolio of support and assistance that allows our clients to view us as a bit
lucky as their favourite answers.
3. Foster an atmosphere where information, gifts, and partnerships are valued.
4. Customers, contacts, and workers should be able to choose from a variety of flexible,
professional and personalised options
5. The needs of the individuals who are the focus of our involvement will be addressed.
In HCL, there is an HR interview.

Key policies of HRM in HCL:

 Recruitment
 Selection Procedure
 Probation Policy
 Employee training policy
 Health and Safety policy
 Working time Policy

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  Compensation and Benefits policy
 Promotions and Incentives policy
 Employee Relation Policy

Recruitment:

Recruitment is the most common way of finding and drawing in able candidates for business.

Source of Recruitment
1. External
a) Employment Exchange
b) Advertisement
c) Management Institute
d) Management Consultant
2. Internal
a) Promotion
b) Transfer
c) Retired manager
d) Return after Extended Leave
e) Personnel assigned to the deputation
f) Recommendation
g) Internal job opportunity

Selection Process:
Selection is the process of separating candidates in order to discover the ones who've a higher
hazard of succeeding in a process. Selection entails deciding on a candidate who possesses
the vital qualifications and talents to do the task.
Selection Procedure:
 Job analysis
 Preliminary Screening
 Test
 Interview
 Medical fitness
 Proposal
 Substantiation and reference check

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Probation Policy:
Employees are placed on probation for six months, after which they are given confirmation.
Confirmation is contingent on the employee's acceptable conduct and performance
throughout the probationary term. If the behaviour and/or performance is not good during the
probation period, or if the service is not judged physically fit for confirmation, the service
will be terminated without warning or compensation. During the probation phase, the training
authorities monitor the employee's performance as well as the type and scope of his or her
actions.
Employee Training:
Employee training is an organization's organized effort to assist employees in learning the
job- related behaviors and skills they need to execute their jobs correctly.
Steps involved in employee training:
 Conduct Needs Valuation
i. Structural Analysis
ii. Job Analysis
iii. Personal Analysis
 Training method
i. Lecture
ii. On the job training
iii. Simulation
 Training Evaluation

Health and Safety Policy:

HCL is a public sector organization that is governed by the Factory Act of 1948 and the Mines
Act of 1952 to ensure the health and safety of all employees.
Health:
 Waste and effluents disposal
 Temperature and ventilation
 Fume and Dust
 Artificial Humidification
 Lighting
 Overcrowding

Safety:
 Work on or around moving machinery

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  Extreme weight
 Pressure plant
 Self-act machine

Welfare:
 Seating arrangements
 First aid
 Canteens
 Shelter

Work Time policy:

 Weekly hours
 Daily hours
 Interval for rest
 Spread over
 Register of workers
 Prohibition of overlapping shift
 Notice period
 Night shift

Compensation and benefits policy:

1. Dearness Allowance
It is paid on
- December-February
- March-May
- June-August
- September-November
2. Travelling allowance
- Tour on official duties
- Recall from leave
- Transfer
- Travel leaves
- Medical leave
3. Canteen allowances
4. Night shift allowances
5. House rent allowances
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 6. Conveyance allowance
7. Subsistence Allowance

Promotion and Incentives policy:

i. Business performance Incentives
ii. Operating cost Incentives
iii. Production Output Incentives
iv. Direct Production Incentives

Other Promotion methods

i. Time scale promotion
ii. Seniority

Performance Appraisal System:

i. Self-Appraisal
ii. Evaluation and planning of performance
iii. Performance Assistance
iv. Development Plan
v. Ultimate Evaluation

Retirement policy:
HCL has all other public sector unit has its retirement policy considering the benefits of its
employee. The retirement benefits include:
i. Provident fund
ii. Gratuity
iii. Half pay leave
iv. VRS

Employee Relation Policy:

A good employee engagement strategy fosters a sense of community among employees, not
simply among co-workers. Employees establish an emotional bond with their employer when
they are successfully and positively engaged with them. They include:
i. Communication Activities
ii. Reward Scheme
iii. Organizational culture-building activities
iv. Team-building exercises

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 MINDTREE:

Introduction of the Company:

Founders of Mindtree: Subroto Bagchi, Krishnakumar Natarajan, Ashok Soota, Anjan Lahiri

Founded on: 18 August, 1999

Location of the Headquarters: Bengaluru, India.

Vision of the company:

"Mindtree takes an agile, collaborative approach to create customized solutions across the digital
value chain."
Mission of the company:
"We engineer meaningful technology solutions to help businesses and societies flourish."

Key Policies of HRM in Mindtree:

i. Policy on corporate social responsibility

ii. Remuneration policy for executive directors
iii. Anti-Slavery policy
iv. Policy of whistleblower
v. Sustainability

 Policy on Corporate Social Responsibility:

 Setting and Vision:
"We engineer major innovative solutions to help organisations and social orders thrive," says
Mindtree's mission statement. We engage with society beyond business because we believe
that a good business must have a greater impact in creating a better future for networks all
over the world. This arrangement characterises Mindtree's Corporate Social Responsibility
(CSR) aims and projects, which it has adopted to meet its obligations as a capable corporate
resident in order to achieve its primary goal.

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  Destinations and Approach:
Mindtree will focus on CSR initiatives that help to develop the areas identified in this
approach. Projects will be attempted wherever Mindtree is present, with a special focus on
the areas surrounding Mindtree's headquarters. CSR projects will be carried out in a variety
of ways, including directly and/or through partners such as NGOs, Trusts, scholarly
institutions, business partners, enrolled social orders, and so forth. The Company will select
its partners after careful consideration.

 Centre Areas:
According to the Companies Act of 2013, among other things, Mindtree will focus on:
o Help the differently-abled
o Encourage education
o Create viable business opportunities
o Promote health

 Remuneration Policy for Executive Directors:

a) The Committee will determine the Executive Directors' salaries, compensation,
commissions, and other benefits, and will recommend them to the Board for approval.
Wherever necessary, the salary / compensation / commission, etc. will be subject to the
approval of the Company's shareholders.

b) The Executive Directors shall be given salary and commission in accordance with the
percentages, limitations, and conditions set forth in the Company's Articles of Association, as
well as the provisions of the Act/LODR.

 Anti-Slavery Policy:
Mindtree is dedicated to eliminating modern slavery and human trafficking from all aspects
of our business, including our supply chains. Mindtree has developed anti-slavery and anti-
human trafficking policies and practises, such as the Whistle-blower Policy, Integrity Policy,
Code of Conduct Policy, and Non-discrimination Policy, as part of a larger effort of supply
chain transparency and accountability, as well as respect for human rights
 Policy of the whistle-blower:
While the Whistle-blower Policy is meant to safeguard a Whistle-blower, who makes a
Protected Disclosure, it is crucial to highlight that if the Whistle-blower makes many

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frivolous

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disclosures or makes a fraudulent or phoney disclosure with mala fide purpose, the Whistle-
blower will face disciplinary action. As a result, protection under the Whistle-blower Policy
does not imply immunity from disciplinary action originating from a Whistle-blower's false,
frivolous, or spurious charges. In addition, the
Whistle-blower agrees to hold Mindtree, including its Directors and Mindtree Minds,
harmless from any issues, claims, allegations, charges, or expenses of any kind brought by
the Respondent or any third party at any time arising from or related to the Whistle-blower's
frivolous or false Protected Disclosure.

 Sustainability:
o Sustainability in the workplace
o Environmental Longevity
o Social Persistence
o Governance
o Leadership Commitment of Stakeholders in Management

RECRUITMENT PROCESS:
There are 5 steps involved in the recruitment process in Mindtree
 Step-1: Pre-Placement Talk
 Step-2: Online Written Test
 Step-3: Spoken English
 Step-4: Technical Interview Round
 Step-5: H.R interview

HR analytics: Prediction of future:

HR analytics are now being used to forecast future results, rather than only to assess
intangibles like leadership, corporate culture, and employee loyalty, as decision science,
pattern recognition, and statistical analysis have evolved Employee costs account for 20
percent to 70 percent of all corporate expenses. HR executives, particularly their business
partners, cannot overlook this.
HR professionals are becoming better business partners by utilising HR data to aid
realignment inside the enterprise. Clearly, this is a trend that is affecting many businesses,
although acceptance is still in its early phases.

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 TATA:

Introduction of the Company:

Founders of TATA: J.R.D Tata, Faquir Chand Kohli, Tata Sons

Founded on: April 1, 1968

Location of the Headquarters: Mumbai, India

Vision of the company:

To be among the 5 most respected Information Technology Solution Providers internationally
with leadership focus in conveyance of items, arrangements and administrations which are
universally competitive
Mission of the company:
TCS Technology will give items and administrations that meet as well as surpass the
expectations of the clients through arranged and nonstop improvement of the Services,
Products, Processes and People.

Key Policies of HRM in TCS:

1. Recruitment

2. Selection

3. Organizational Exit

4. Performance Appraisal Policies

5. Promotion Policies

6. Training and Development

7. Grievance Handling Policies.

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Recruitment:

Recruitment is the most common way of finding and drawing in able candidates for business.

Methods of Recruitment:

1. Internal search

2. Employee recommendations

3. Job placement services

4. Educational establishments

5. Applicants who are interested

Selection:

The method involved with picking the most appropriate possibility for a task from among the
accessible candidates is called selection. The choice interaction begins with the complete data
about the candidate from his application structure and finishes with enlisting the up-and-
comer into the association.

Steps involved in Selection:

1: Aptitude Exam
2: Technological Interview
3: Management evaluation
4: HR Interview
5: Call regarding the-Offer letter

Organizational Exit:

TCS has a policy of interviewing people for are leaving the company for 2 main reasons:
1.Why are individuals stepping down from the company?
2. What is their motivation for joining the other organization?
They are led by the appropriate team’s PL and HR representative, with all information kept
confidential.

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Compensation Policy:

The Economic Value Added (EVA) Model is the basic notion or theory used to determine
compensation policies. In 1999, TCS established a Management Consultancy Division and
adopted the EVA. This approach assessed the organization’s operational and financial
performance. The compensation for employees was set on a rigid basis. The goal was to
evaluate the employees’ contribution to the company. Pay components that are fixed and
variable were determined. Compensation can also be used to reward exceptional achievement
on the job.

Performance Appraisal:

TCS conducts two performance reviews each year:

1. At the end of the calendar year
2. At the conclusion of the project
Employee performance is measured against four tiers of targets in the Balanced Scorecard,
which guides appraisals: financial, customer, internal, and learning and growth. In terms of
revenue growth, cost savings, enhanced asset utilization, and so on, the financial perspective
measures the employee’s contribution. Employees are given a rating of one to five stars (five
= “superstar”) based on their accomplishments. When employees obtain a poor grade (less
than two) in two consecutive assessments, the red lights turn on. “If the low-performing
educational projects to receive poor grades, dismissal may be considered.” TCS has
discovered the sequence that leads to some of the most significant loss in performance.
Employees’ performance suffers or they leave the company when they work on the same
project for more than two years. TCS avoids this by changing project personnel every 18
months or so. “Performance decreases when motivation suffers,” according to TCS.

Promotion Policies:

Policies for Promotion is defined as an increase in the functions and responsibilities of an

individual who has the ability to handle that position or job. When an employee has the
possibility to advance in the organization, it is vital and mandatory to evaluate their
performance. Promotion is determined by the needs of the company. TCS promotes its staff
based on two criteria:
1. Promotion based on role – Promotions are granted depending on the employee’s actual
performance.

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2. Promotion based on maturity – The employee is promoted based on his or her maturity and
devotion to the organization in Maturity Based Promotion.

Training and Development:

 This consulting firm’s major goal is to educate its staff on current industry practices
in their respective fields.
 It has a well-thought-out induction programmed in place for new recruits, that
includes 60 days of extremely severe training at a specialized training centre.
 The company also offers “Just-in-Time” training to employees, which has a reactive
nature and focuses on skills related to technology, platform, application domain and
other project-based skills.
 It reintroduces concepts learned during education or induction training through on-
the- job experience.

Grievance Redressal:

When an employee’s displeasure or dissatisfaction isn’t addressed appropriately in the

workplace, it’s referred to as a grievance. When a new employee joins a company, they have
specific expectations of the company. If those expectations are not realized over time,
discontent develops, which, if not addressed effectively, develops into grievance. There can’t
be a corporation without complaints. Every company, on the other hand, should have a proper
complaints management procedure. Grief is a form of communication that is directed upward.
It alerts management to vital information about looming problems in advance. Grief might be
real or imagined, legitimate or invalid, true or false. Employee grievances were sought to be
addressed since they can cause displeasure, frustration, discontent, low morale, and, most
significantly, negatively impact production. TCS has created a special site named
“ULTIMAX” to ensure that the employees’ key concerns are handled. An employee can
quickly access the portal and file a complaint. HR will then address the complaint and
attempt to resolve it. One thing to keep in mind is that the grievance will be kept confidential,
and only approved employees, such as an HR Manager, will be able to see it.

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 CONCLUSION:
In today’s world, the Human Resource Management plays a very significant role in the daily
life. On the one hand, the Human Resource Management influence on the business and lets
them develop rapidly. It can improve employee’s motivation in a business and pay attention to
company’s policy and law respectively, which can increase the efficiency of company and get
higher profits. On the other hand, trade unions help the employee to achieve negotiation
successfully in the early time; it means the employee can negotiate a better wage and a good
working condition.

Human resources are a key element in the success or failure of monitoring program to
meet their objectives. Without an adequate strategy to develop the human resources available
and attract high caliber staff, monitoring programs rapidly stagnate. Human resources
development should encompass a much wider remit than training and should address issues
such as career structures and professional development. It should also provide all levels of
staff with the support and framework within which to function effectively and efficiently.
Human resource management play a vital role in achieving organizational goals through HR
planning and managing performance.

HRM not only responsible for HR planning and decision making. Through
recruitment, training and development HRM selects best employees for organization which
play its role to achieve strategic goals. Through HRM performance appraisal which makes an
organization more efficient. It does not only focus on the overall strategic goal of an
organization, but also manage its human capital also helps in keep track on globalization and
the effects or benefits it could have and at the same time have to monitor and updating the
organizations HR policies and procedures. The HR department must not only attract, recruit,
selecting and train and develop the workforce but also helps in monitoring through different
methods.

Here in this project, we have examined distinctive roles of HRM in chosen

organization (HC, Mindtree and TCS). The people component has been very significant for
the development of the Indian software services industry. This project indicates that there is a
collection of useful HR practices by the IT companies.

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 REFERENCES:

[1.] Shivam Pandey’s work published in the ‘India Documents’ website, dated July 7, 2018,
https://fdocuments.in/document/hrm-policies-of-tcs-and-pantaloons.html

[2.] Gunjan Thakkar’s work uploaded on ‘SlideShare’, dated December 25, 2014,
https://www.slideshare.net/gunjanthakkar148/human-resource-management-policies-
of-tcs-and-pantaloons

[3] Monika S’ work uploaded on ‘SlideShare’, dated February 7, 2012,

https://www.slideshare.net/monikakunwar/hr-policies-in-hcl-monika-ndim

[4] Pamela Kundu’s work uploaded on the website, dated August 20, 2015,
https://www.mindtree.com/insights/blog/make-hr-transformation-destination-rather-
journey

[5] Website https://www.mindtree.com/about/investors/policies on the official page of

Mindtree

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