Impact of Procurement Practices on Job Performance in Select it Companies in Hyderabad- An Analytical Study
Mrs. Kavitha Dasari1, Prof. D. A. R. Subrahmanyam2
1Research Scholar, Acharya Nagarjuna University, Guntur, AP. 522510
2Principal, Mahatma Gandhi College, Guntur, AP
*Corresponding Author E-mail: kavitha2000mba@gmail.com
ABSTRACT:
The aim of the study is to find out procurement practices in the select organizations and its impact on employee job performance for this purpose 5 it organization were selected in the Hyderabad city. the sample size for the study was 500 employees. for analyzing the weighted average mean, percentage analysis, correlation and regression analysis were performed. from the survey it is found that there has been a strong and positive relation between procurement practices and employee job performance. among the select procurement practices recruitment and selection, and job analysis strongly influencing employee job performance in the IT organizations.
KEYWORDS: Procurement Practices, regression, procurement.
INTRODUCTION:
Procurement practices are essential practices for every organization and these practices decide the organization future. Information technological industry strongly based on high intellectual abilities of the employees because IT industry needed to satisfy various requirements of the clients. IT industry always changes according to the technological advancements in this regard there is a huge demand for intellectual peoples in the technology world. To balance organizations functions and to introduce new blood in the organization and some other causes such as withdrawn of employees and retirements, production policies of the organization it is needed to focus on procurement practices in the organizations. Procurement practices include job analysis, human resource planning, recruitment, selection, induction, orientation and internal mobility.
STATEMENT OF THE PROBLEM:
An organization to achieve its goals it required skilled manpower. for procurement of such skills management of the organization required to perform various activities such as job analysis, human resource planning, selection, induction, orientation and internal mobility. IT sector needs more concentration in terms of skilled and intellectual abilities to cope up with advancements and to match requirements and prospect of the various Clients. The primary function of HR manager is attracting and retaining talented people and making them more approachable towards the requirements of the organization and client. This process also very expensive to the organization, in terms of time and money Hence it is required to concentrate on employee procurement practices in the organization.
REVIEW OF LITERATURE:
P Subba Rao in his book essentials of human resource management and industrial relations he opinioned that procurement is a sub function of personal management and it covers the functions such as job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility. Employee Procurement refers the procurement of manpower, hiring or recruitment of people but not limited to recruitment only. In simple terms, employee procurement can be defined as hiring or employing individuals who possess required skill, knowledge, experience and working aptitude.
Cascio Wayne (1998) opinioned that while doing procurement practices in the organization management required to concentrate on organization culture because such culture helps orientation and involvement. further he opinioned that compensation linked performance and conducting continuous training programs make the organization an identifiable difference in terms of productivity of the employees and return on investment.
P. Jyothi and D.N venkatesh (2006) opinioned in their book job analysis, it is a methodical process for sourcing information about work, jobs and association between jobs. they opinioned that work analysis gives primary information about requirement of jobs and skills. such job analysis helps to attract employees and to practice compensation.
VSP Rao (2006), he opinioned that human resource planning forecast the requirements of the manpower in advance so that organization can plan its schedules such as production, marketing plans markets hence, HRP Is an integral part of the organization. HRP gives information about what kind of skilled manpower we have, what types skilled peoples required and how much required achieving firm goals.
Diane Arthur (2010) according to him orientation is a process of making employee familiar with his surroundings, and make him feel comfortable with the important details and routine of a typical day and develops an understanding of company and departmental expectation. he further opinioned in his book that orientation programs helps the organization to retain employees for a long time and such retention reduce the organization cost where to recruit new employee.
OBJECTIVES OF THE STUDY:
· To study the socioeconomic profile of the respondents
· To examine the procurement practices in select IT industry
· To measure the impact of procurement practices on employee job performance in select IT industry.
· To offer suggestion to increase job performance of the employees.
Hypothesis:
Ha1: There is a relation between procurement practices and employee job performance in select IT industry.
RESEARCH METHODOLOGY:
The present research study involves both primary and secondary data. Primary data was collected through field survey with the help of a structured questionnaire with closed end questions. The questionnaire consists of definite, concrete and pre ordered questions. The scaling technique in the questionnaire was 5-point Likert-scale. The sample size for the study is 500 IT employees and from 5 organizations in Hyderabad and from each organization 100 employees randomly selected for the study/The Secondary data was collected by referring from published books in order to draw meaningful inferences from the collected data the following statistical tools were applied. The collected data was reduced to the form of tables on which statistical tools like Mean scores, % scores and standard deviations were applied in order to know the nature of the variations in responses. In order to test the relevancy of the proposed hypotheses, statistical tools, Conbach alpha, Pearson correlation analysis and multiple regression analysis were applied.
DATA ANALYSIS AND INTERPRETATION:
Objective-1:
Findings:
Majority of the employees are within the age group of 25-35 years and the men longer in number than women. With regard to educational qualifications of selected respondents, majority of them are post graduates with M Tech qualification. Most of them are from urban conglomerations and majority of them are unmarried. Majority of the employee’s income level between the range of 35 to 45000 rupees most of the employees have 6 years of experience. Employee’s convenience and they were quite satisfied with the procurement in the selected units of the IT industry.
Objective-2
Findings of objective -2
The table no-1 shows the data on job analysis practices. From the table it can be seen that the organizations has been conducting job analysis in their respective organization and all the employees were satisfied with job analysis practices with the mean score 3.43 and the percentage is 61
The table no-2 shows the data on HRP (Human resource practices). From the table it can be seen that the organizations has been conducting human resourcing in their respective organization and all the employees were satisfied with the above said practices with the mean score 3.5 and the percentage is 62.
Table no-1 Job Analysis Practices
S. No |
Item |
SA |
AG |
SWA |
DA |
SDA |
MS |
Sd |
% |
1 |
Superiors involved in job analysis |
145 (29%) |
123 (24.6%) |
75 (15%) |
95 (19%) |
62 (12.4%) |
3.39 |
1.39 |
59.72 |
2 |
Job analysis helps to estimate human resource requirements |
180 (36%) |
94 (18.8%) |
61 (12.2%) |
91 (18.2%) |
72 (14.4%) |
3.44 |
1.49 |
60.99 |
3 |
Job description and specifications, basic pay and packages clearly communicating in the organization |
154 (30.8%) |
140 (28.2%) |
52 (10.4%) |
89 (17.8%) |
65 (13%) |
3.46 |
1.42 |
61.45 |
Average frequencies |
178.76 |
159.67 |
65.67 |
56.67 |
38 |
3.43 |
1.43 |
60.75 |
SDA= Strongly Disagree; DA=Disagree; SWA: somewhat agree; AG= Agree; SA= Strongly Agree
Table no-2 HRP Practices
S.no |
items |
SA |
AG |
SWA |
DA |
SDA |
Ms |
Sd |
% |
1 |
Provisions for human resource planning |
177 (35.4%) |
141 (28.2%) |
62 (12.4%) |
58 (11.6%) |
62 (12.4%) |
3.63 |
1.39 |
65.65 |
2 |
Hr planning aligned to business requirements |
128 (25.6%) |
141 (28.2%) |
89 (17.8%) |
86 (17.2%) |
56 (11.2%) |
3.40 |
1.33 |
59.95 |
3 |
Hr planning provides manpower as per requirements |
149 (29.8%) |
139 (27.8) |
90 (18%) |
52 (10.4%) |
70 (14%) |
3.49 |
1.38 |
62.25 |
4 |
Hrp is considered as important system in our organization |
130 (26%) |
140 (28%) |
100 (20%) |
60 (12%) |
70 (14%) |
3.40 |
1.36 |
60.00 |
Average frequencies |
146 |
140 |
85 |
64 |
64 |
3.5 |
1.4 |
62 |
SDA= Strongly Disagree; DA=Disagree; SWA: somewhat agree; AG= Agree; SA= Strongly Agree
Table No-3 Recruitment and selection practices and internal mobility
S. No |
items |
SA |
AG |
SWA |
D |
SDA |
MS |
Sd |
% |
1 |
Fairness of selection procedure in the selected organizations |
278 (55.6) |
89 (17.8%) |
50 (10%) |
54 (10.8%) |
29 (5.8%) |
4.07 |
1.27 |
76.65 |
2 |
Ability of selection procedure to keep right person at right place |
192 (38.4%) |
162 (32.4%) |
41 (8.2%) |
63 (12.6%) |
42 (8.4%) |
3.47 |
1.35 |
61.65 |
3 |
Satisfaction with Selection Procedure |
156 (31.2%) |
159 (31.8%) |
79 (15.85%) |
66 (13.2) |
40 (8%) |
3.65 |
1.26 |
66.25 |
4 |
While recruiting employee emotional stability has been identifying |
160 (32%) |
196 (39.2%) |
21 (4.2% |
66 (13.2%) |
57 (11.4%) |
3.67 |
1.35 |
66.80 |
5 |
Recruitment policy of the organization Clearly mentioning while recruiting employees |
97 (19.4%) |
201 (40.2%) |
84 (16.8%) |
61 (12.2%) |
57 (11.4%) |
3.44 |
1.25 |
61.00 |
6 |
Have development oriented recruitment policy in the organization |
131 (26.2%) |
130 (26%) |
89 (17.8%) |
72 (14.4%) |
76 (15.2%) |
3.34 |
1.40 |
58.60 |
7 |
Organization sourcing employees internally |
97 (19.4%) |
201 (40.2%) |
84 (16.8%) |
61 (12.2%) |
57 (11.4%) |
3.44 |
1.25 |
61.00 |
8 |
Adequate number of workforce are recruiting in the work place |
133 (26.6%) |
105 (21%) |
90 (18%) |
91 (18.2%) |
81 (16.2%) |
3.24 |
1.43 |
55.90 |
9 |
Feeling Monotones while doing job due to lack of job rotation |
145 (26.6%) |
148 (21%) |
99 (18%) |
51 (18.2%) |
57 (16.2%) |
3.55 |
1.31 |
63.75 |
Average frequency |
154 |
155 |
71 |
66 |
55 |
3.55 |
1.32 |
64 |
SDA= Strongly Disagree; DA=Disagree; SWA: somewhat agree; AG= Agree; SA= Strongly Agree
Table no-4 Induction and Orientation
S. No |
Items |
SA |
AG |
NT |
D |
SDA |
Ms |
SD |
% |
1 |
Mangers introducing peers and sub ordinates |
285 (57%) |
100 (20%) |
74 (14.8%) |
19 (3.8%) |
22 (4.4%) |
4.21 |
1.11 |
80.35 |
2 |
Induction helped me to do my job and to perform responsibilities |
209 (41.8%) |
122 (24.4%) |
80 (16%) |
33 (6.6%) |
56 (11.2%) |
3.79 |
1.35 |
69.75 |
3 |
job related policies are appropriate in the organization |
126 (25.2%) |
176 (35.2%) |
84 (16.8%) |
33 (6.6%) |
81 (16.2%) |
3.47 |
1.36 |
61.65 |
4 |
Management giving guidance to perform my job |
154 (30.8%) |
113 (22.6%) |
93 (18.6%) |
92 (18.4%) |
48 (9.6%) |
3.47 |
1.35 |
61.65 |
Average frequencies |
193.50 |
127.75 |
82.75 |
44.25 |
51.75 |
3.74 |
1.29 |
68.35 |
SDA= Strongly Disagree; DA=Disagree; SWA: somewhat agree; AG= Agree; SA= Strongly Agree
Table no-5 levels of Job performance
Sl.No. |
items |
SA |
AG |
SWA |
DA |
SDA |
MS |
SDV |
% |
1 |
Giving full efforts to perform job |
188 |
126 |
72 |
60 |
54 |
3.67 |
1.37 |
66.7 |
2 |
while performing job feeling I responsibility |
190 |
136 |
66 |
56 |
52 |
3.71 |
1.35 |
67.8 |
3 |
Organizational goals are achieving |
153 |
186 |
46 |
67 |
48 |
3.66 |
1.3 |
66.45 |
4 |
Have punctuality in the work |
147 |
179 |
51 |
56 |
67 |
3.57 |
1.37 |
64.15 |
5 |
Have obedient towards work |
126 |
176 |
84 |
33 |
81 |
3.47 |
1.36 |
61.65 |
6 |
doing job with an intention to complete |
132 |
164 |
72 |
69 |
63 |
4.47 |
1.35 |
61.65 |
7 |
Work burden is an obstacle to perform work |
141 |
168 |
84 |
61 |
46 |
3.59 |
1.27 |
64.85 |
|
AVG frequency |
154 |
162 |
68 |
57 |
59 |
3.73 |
1.35 |
64.75 |
SDA= Strongly Disagree; DA=Disagree; SWA: somewhat agree; AG= Agree; SA= Strongly Agree
The Table no-3 shows the data on Recruitment and selection practices. From the table it can be seen that the organizations has been conducting recruitment and selection practices fairly in their respective organization and all the employees were satisfied with the practices and the mean score 3.55 and the percentage is 64.
The table no-4 shows the data on induction and orientation practices. From the table it can be seen that the organizations has been conducting induction and orientation practices in their respective organization and all the employees were satisfied with the practices and the mean score of all the items were 3.74 and the percentage is 68.35.
The table no-5 shows the data on employee job performance. From the table it can be seen that employees in the organizations performing their jobs efficiently in their respective organization and all the employees were satisfied with the performance with the mean score of all the items were 3.73 and the percentage is 64.75
Test of Reliability and Validity:
Before applying statistical tools, testing of the reliability of the scale is very important as it shows the extent to which a scale produces consistent result if measurements were made repeatedly. This is done by determining the associations in between scores obtain from different administrations of the scales. If the association is high, the scale (Five Point Likert Scale) given consistent results, thus it is reliable. Cronbach’s a (alpha) is coefficient of reliability. It was first named alpha by Lee Cronbach in 1951
Table –no 6: Reliability Statistics
Cronbach's Alpha |
N of Items |
.988 |
4 |
Table not 6 shows the data on reliability of independent variables. The items average Cronbach alpha was 0.988 it can be measured in terms as significant .
Objective 3 findings:
The data in table 4 indicate that select Procurement facets (job analysis, human resource planning, recruitment and selection, induction and orientation) were positively correlated with job performance and also significant at 1% level. Hence; hypothesis of h1 the present study was accepted.
Table no-7 Correlations
|
|
Job analysis |
HRP |
Recruitment and selection |
Induction and orientation |
Job performance |
Job analysis |
Pearson Correlation |
1 |
.960** |
.926** |
.919** |
.945** |
Sig. (2-tailed) |
|
.000 |
.000 |
.000 |
.000 |
|
N |
500 |
500 |
500 |
500 |
500 |
|
HRP |
Pearson Correlation |
.960** |
1 |
.927** |
.926** |
.945** |
Sig. (2-tailed) |
.000 |
|
.000 |
.000 |
.000 |
|
N |
500 |
500 |
500 |
500 |
500 |
|
Rrecruitment and selection |
Pearson Correlation |
.926** |
.927** |
1 |
.959** |
.951** |
Sig. (2-tailed) |
.000 |
.000 |
|
.000 |
.000 |
|
N |
500 |
500 |
500 |
500 |
500 |
|
Induction and orientation |
Pearson Correlation |
.919** |
.926** |
.959** |
1 |
.936** |
Sig. (2-tailed) |
.000 |
.000 |
.000 |
|
.000 |
|
N |
500 |
500 |
500 |
500 |
500 |
|
Job performance |
Pearson Correlation |
.945** |
.945** |
.951** |
.936** |
1 |
Sig. (2-tailed) |
.000 |
.000 |
.000 |
.000 |
|
|
N |
500 |
500 |
500 |
500 |
500 |
|
**. Correlation is significant at the 0.01 level (2-tailed). |
Table No-8 (a)Model Summary
Model |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
1 |
.969a |
.939 |
.938 |
.33608 |
a. Predictors: (Constant), INOR, job, RS, hrp
Table No-8(b) ANOVAb
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
1 |
Regression |
855.489 |
4 |
213.872 |
1893.564 |
.000a |
Residual |
55.909 |
495 |
.113 |
|
|
|
Total |
911.398 |
499 |
|
|
|
a. Predictors: (Constant), IN and OR, job (job analysis), RS (recruitment and selection), HRP (Human resource planning) b. Dependent Variable: JPER (job performance)
Table No-8 (c) Coefficientsa
Model |
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
||
B |
Std. Error |
Beta |
||||
1 |
(Constant) |
-.145 |
.052 |
|
-2.778 |
.006 |
Job analysis |
.276 |
.043 |
.271 |
6.409 |
.000 |
|
Human resource planning |
.234 |
.045 |
.227 |
5.213 |
.000 |
|
Recruitment and selection |
.435 |
.047 |
.399 |
9.264 |
.000 |
|
Induction and orientation |
.095 |
.042 |
.094 |
2.244 |
.025 |
a. Dependent Variable: PER
According to the table 8(a) the R value 0.969 which indicating that there was a strong relation between procurement practices and job performance. The table 8(b) depicts that F value was 1893.564 which was significant at 5% (p=0.000) which suggest that procurement significantly impact on job performance. All the results derived from multiple regressions in the table 8(c) co-efficient justify procurement practices was shown significant impact on job performance. Further in this table it was seen that recruitment and selection (t-value 9.264), job analysis (t-value 6.409) and human resource planning (t-value 5.213) were most important predictors of the job performance of employees. Induction an orientation programs were significant but compare to other variable it was less.
SUGGESTIONS:
· Before pooling the application from various sources management of the organization clearly mention the description of the job and job specification requirements so that eligible candidates may apply and this would reduce complexity to both the parties.
· Superiors in the IT organizations must focus carefully while doing job analysis
· IT organizations should hire employees form their internal sources so that employee can get motivation.
· IT organization should frame their recruitment policy for individual development of the employees.
· In order to reduce monotonous nature of the employees job rotation opportunity should be given to all levels of employees in the organization.
· To increase job performance organization should reduce work burden among the employees by recruiting sufficient work force.
· organization should clearly stated their requirement to employees so that they can work with clarity.
CONCLUSIONS:
It is concluded from the study that IT organizations required technical employees and they select employee who have knowledge to perform according to their requirements. Hence; before pooling of the applications they needed to focus on procurement practices carefully in order to increase job performance and to achieve competitive advantage in their respective segment.
REFERENCES:
1. P. subbarao (1999) essentials of human resource management and industrial relations, Himalaya Publications Pp (68,69)
2. Cascio wayne (1998) Managing human resource productivity, Irwin Mc Graw HIll,1998
3. P. Jyothi and D.N Venkatesh (2006) Human resource management, Oxford, Pp (52,53)
4. VSP Rao (2006), Human resource management, second edition, EXCEL Books, Pp (108)
5. Diane Arthur (2010) recruiting, interviewing, selecting and orienting new employees, fourth edition, PhI eastern economy Edition.Pp(290,291)
Received on 26.01.2018 Modified on 28.03.2018
Accepted on 18.04.2018 © A&V Publications All right reserved
Asian Journal of Management. 2019; 10(1):01-05.
DOI: 10.5958/2321-5763.2019.00001.5