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 To balance organizations functions and to introduce new blood in the organization and some other causes such as withdrawn of employees and retirements, production policies of the organization it is needed to focus on procurement practices in the organizations.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