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Research Article | Volume 2 Issue: 2 (March-April, 2025) | Pages 43 - 53
A Study on HCM Practices in IT and ITeS Companies and Their Influence on Employee Intelligence
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1
Associate Professor, ISBR Business School, Bengaluru, Karnataka 560100
2
PGDM Student, ISBR Business School, Bengaluru, Karnataka 560100
3
Assistant Professor, ISBR Business School, Bengaluru, Karnataka 560100
Under a Creative Commons license
Open Access
Received
Dec. 27, 2024
Revised
Jan. 23, 2025
Accepted
March 10, 2025
Published
March 17, 2025
Abstract

The aim of this paper is to compare the HCM  policies followed in the IT and ITeS  companies in Bangalore and to check if they have an impact on the emotional intelligence of the employees. In this paper we have classified the HCM practices into eight categories and compared them across IT & ITeS industries and studied their impact on the emotional intelligence of the individual ( employee). The eight categories of HCM are Leadership Practices, Knowledge accessibility ,Workforce optimization, Learning capacity, Employee engagement, Relationship with immediate supervisor, Ethical capital and Succession planning. In order to do this study the 8 HCM practices were taken as Independent variables, and the EI was taken as a dependent variable.The study was conducted across 287 respondents (112 from IT and 175 from ITeS). It was revealed that there were certain differences in the relationship between the different HCM practices (stated as HR practices) and the select behavioural variable EI; however, at the end it was revealed that though differences exists, all the hypothesized relationships were  accepted asserting that the existence of relationship. Furthermore, there are no great differences in the IT and ITES sector in the present research scenario which depicts the fact that in both these sectors, HCM and HR practices are generally people centric wherein the focus becomes to retain talented knowledge workers and provide them with peaceful and comfortable working environment

Keywords
Introduction

Human capital management (HCM) practices in an organization help in producing desired levels of performance based on innovation. Therefore, various constructs of HCM practices were analysed among IT and ITeS sector respondents by Friedman test, in order to determine the level of preference. The various constructs included learning capacity, relationship with immediate supervisor, knowledge accessibility, employee engagement, ethical capital, succession planning, workforce optimisation and leadership practices. Productivity is defined by the business dictionary as a measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs. Productivity is computed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period. Productivity is a critical determinant of cost efficiency. Sustainability is the new buzzword gone are the days when starting an organization was very difficult now starting a new firm is easier than lot before, but sustainability has become an important concern for all stakeholders of the business. Sustainability can be built only with the human capital. Human Capital management refers to managing an organisation's employees for them to contribute significantly to the overall productivity of an organization. In a layman’s language managing workforce of an organization refers to human capital management. Coming back to productivity it is directly affected by the individual’s behaviour that he or she exhibits at the workplace. Those behavioural aspects could be many. For this study, we have taken Emotional Intelligence. These behavioural factors are affected by the HCM practices followed in a company. Choo Huang et al., (2007) also defined a clear and simple definition about HC which is convening a novel combination of components, and it was confirmed and identified in classification format. Further, Huang asserted the HC in 15 items which were classified into three groups are described in below table.

Table 1.1: Human capital items listed by Choo Huang et al. (2007)

S.No

Employees’ capabilities

Employees’ development & retention

Employees’ behaviour

1

Employees’ know-how and expertise

Employees’ job satisfaction

Key employee turnover

2

Employees’ work-related competence

Leadership qualities of managers

Incentive programme and compensation scheme

3

Employees’ creativity and Innovativeness

Employees’ motivation

Employees’ previous job experiences

4

Employees’ work-related knowledge

Employees’ loyalty

Employees’ level of education and vocational qualification

5

 

 

Employees’ profitability

6

 

 

Employees’ training

7

 

 

Employee recruitment costs

 

Emotional intelligence has been defined, by Peter Salovey and John Mayer, as "the ability to monitor one's own and other people's emotions, to discriminate between different emotions and label them appropriately, and to use emotional information to guide thinking and behaviour.

The Genos Emotional Intelligence Inventory (Genos EI), is a behaviour-based measured. It provides insight into how well someone demonstrates emotionally intelligent workplace behaviour from the most credible source available: those who see the person in action every day. Underpinned by a wealth of peer-reviewed research Genos EI Is available in self, 180 and full 360-degree formats and in Leadership and Individual Contributor versions. It is also available in many different languages being used by a wide variety of fortune 500 multinational companies every day.We have used this tool to study the EI of participants( Genos short version tool is free. In this study the researcher tries to examine the relationship between the HCM practices followed in a  company and its impact on the Emotional intelligence of the person.

 Information Technology (IT) means creating, managing, storing and exchanging information using all types of technology to deal with information. ITeS: Information Technology that enables the business by improving the quality of service is Information Technology enabled Services (ITeS).These industries have helped the Indian GDP growth to a significant level.

Literature Review:

The concept of HC was formulated initially by Theodore Schultz in the 19th century, as a way of describing the benefits of infusing education on a national scale.

Paton (1962) asserted that an accounting theory should represent employees in an organisation like assets which reinstated noble prize winners Schultz and Becker theory that described and published that the human capital is an investment in the education of employees which is same to investments in equipment.

Morrison (2007) analyzed emotions and the role of emotional intelligence with various work tasks: clients engagements; evaluation and perception; making decisions; coordinated efforts and support; managing stress in the rapidly changing context of social work: merger of social services departments with all the more powerful administrations; integrated service delivery; and the new social degree. Thus, social work is required to distinguish its claims to expert skills at the time of such change, one of which is the ability to use relationships to address users’ needs. This requires the ability to handle one’s own and others’ emotions effectively.

Higgs (2004) stated that it is found that there has been very strong association within the employee's view point, innovation, readiness, creative ability and conflict lies as strong factors which influences performance with the emotional intelligence. The emotional intelligence has a significant relationship between job performance and organizational performance. It was found that contribution in increasing organizational and individual's performance is depended on with emotionally intelligent leaders in the specific organization.

Anand and  Udasuriyan (2010) stated that there is an association with emotional intelligence and management skills and this was evident in South India. The managers with good emotional intelligence have good tactics for management because the success can be predicted with their skill. So, emotional intelligence is very important in management, and it was their inference. Emotional intelligence plays a good role in knowledge sharing with juniors and friendly relationship with the colleagues.

Lindebaum & Cartwright (2010) stated that Emotional intelligence is an influential variable in recognizing success in both workplace and life. Emotional intelligence plays as a positive association thereby the individuals who possess high-level emotional intelligence were the star performers in the firm.

Hess & Bacigalupo (2011) identified practical approaches to enhance individual and group decisions making process with the use of emotional intelligence. They stated that as emotional intelligence helps in assessing the effect of decisions on an individual’s career and simultaneously improves the effectiveness and quality of decision-making process, organizations benefit from the use of it.

Moon & Hur (2011) examined the effect of emotional intelligence on burnout and how it impacts the performance of an individual in terms of job satisfaction and organizational commitment. The results indicated that emotional exhaustion was negatively related to job performance in terms of organizational commitment and job satisfaction and the mediating effect of emotional exhaustion was confirmed in the relationship between job performance and appraisals of emotions, optimism, and social skills as factors in emotional intelligence.

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Published: 19/03/2025
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