The impact of human capital development initiatives on employee performance of it executives: case study of Bangalore, India

This research paper discusses the initiatives and its impact on the strategies and operations of the executives, and how this impacts on their abilities to contribute positively towards the attainment of their goals and objectives..
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The impact of human capital development initiatives on employee performance of it executives: case study of Bangalore, India International Journal of Management (IJM) Volume 9, Issue 3, May–June 2018, pp. 01–13, Article ID: IJM_09_03_001 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=3 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication THE IMPACT OF HUMAN CAPITAL DEVELOPMENT INITIATIVES ON EMPLOYEE PERFORMANCE OF IT EXECUTIVES: CASE STUDY OF BANGALORE, INDIA Murali S Assistant Professor, Department of Management Studies, Ramaiah Institute of Management Studies, Bangalore, India ABSTRACT Human capital development initiatives for purposes of this study refer to the training and development programs that the IT executives in Bangalore, India are accorded with. Currently, the fact that human capital development of employees translates to competitive advantages is no longer a subject for debate. According to Tomé, and Goyal, (2015) human capital development of employees not only enhances their productivity in the short term, it also helps prepare them for future skills and responsibilities. For organizations, industries and economies, this translates to a lot of things including improved profitability, performance efficiency, creativity and innovativeness. Moreover, it also helps improve employee engagement while at the same time reducing turnover rates. The challenge however is how to develop and implement the best human capital development strategy for specific industries and organizations. The review of literature focuses on the factors that influence IT firms in Bangalore, India to adopt human capital development initiatives, as well as the significance of the initiatives to IT executives. This research paper discusses the initiatives and its impact on the strategies and operations of the executives, and how this impacts on their abilities to contribute positively towards the attainment of their goals and objectives.. This way, the paper gets to discuss the overall function and impact of the human capital development initiatives on performance of the IT professionals. Key words: Human Capital Development, Performance Management, Training & Development, IT Services. Cite this Article: Murali S, The Impact of Human Capital Development Initiatives on Employee Performance of it Executives: Case Study of Bangalore, India. International Journal of Management, 9 (3), 2018, pp. 01–13. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=9&IType=3 http://www.iaeme.com/IJM/index.asp 1 editor@iaeme.com Murali S 1. INTRODUCTION 1.1. Background Organizations usually get work done through its employees and this is an attribute that led to the emergence of the concept of human capital. Human capital has been described by Siddharthan, and Narayanan, (2016) as the culmination of capabilities, knowledge, values, personalities, and creativity, that facilitate the ability of individuals to perform labor and in turn produce economic value. This concept is especially important when it comes to the selection of competent and qualified employees out of a pool of several candidates. A best example of this according to Azam, Raza, (2016) includes selecting the top management team for organizations. Tomé, and Goyal, (2015) explain it more simply by claiming that the concept of human capital applies most appropriately in circumstances when the pool of qualified and competent human resources is in abundance, but opportunities are scarce, hence human resources exceeds capital resource, as is the case with India. Ardichvili, Zavyalova, and Minina, (2012) concur and postulates that human resources can be transformed through a host of development strategies, the most common being training and development initiatives. The authors add that the development of human capital usually translates to highly productive human resources and when this is achieved for countries, economic progress and improvement is inevitably realized. An example of regions where human capital formation is highest is India and Bhattacharya (2017) explains that this is because the region has one of the world’s highest population growths and the region continually invests in qualitative improvement in each generation. The author explains that the evidence of this can be seen in the fact that currently, the third generation of India’s population is more qualitatively qualified than the previous generations. Furthermore, the region’s economy has been significantly improving due to its investments on human capital. Figure 1 Size of India’s IT Industry as a Share of India’s GDP from 2008-2016 Source: Adopted from (Deepashree, 2016) One of the main contributors to India’s growing economy is the Information Technology (IT) Industry. The country’s technology industry consists of IT services and business process outsourcing (BPO) (Deepashree, 2016). By 1998, the industry contributed about 1.2% of India’s GDP, however, by the end of 2016 it contributed about 10% of the region’s GDP and http://www.iaeme.com/IJM/index.asp 2 editor@iaeme.com The Impact of Human Capital Development Initiatives on Employee Performance of it Executives: Case Study of Bangalore, India the trend has been projected to increase exponentially as it has always done as shown in Image 1 below. Directly and indirectly, the industry has provided employment to over 14 million Indians (Deepashree, 2016). On average, the IT industry generated revenues of $160 billi ...