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Asian Journal of Management Cases
http://ajc.sagepub.com/content/4/1/5
The online version of this article can be found at:
DOI: 10.1177/097282010600400103
2007 4: 5 Asian Journal of Management Cases
Piyali Ghosh and Geetika
Recruitment Strategies: Exploring the Dimensions in the Indian Software Industry
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What is This?
2
5.25 3.26 3.1 4.857 0.676 2.103
Note: For a sample size of more than 35, the critical value of D at an =0.20 is 1.07/N.
For k-1=2 df at 0.20 level of significance,
2
critical
=3.219.
Table 2
Median
Values for Recruitment Strategy
Size Prmt Extrnl Rtskill Splnng Mpwr Mplnng
Large 4 3 5 4 4 2
Medium 4 4 5 5 4 2
Small 3 4 5 4 4 2
2. Mode of Recruitment
H
2
: There is no difference among the respondents from Large (L), Medium (M) and Small (S)
organizations regarding internal recruitment in the event of a vacancy.
H
2a
: There is a difference in agreement ratings among the respondents (L, M and S groups)
regarding internal recruitment in the event of a vacancy.
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RECRUITMENT STRATEGIES IN THE INDIAN SOFTWARE INDUSTRY 17
ASIAN JOURNAL OF MANAGEMENT CASES, 4(1), 2007: 525
The Kolmogorov-Smirnov D value is 0.35 (Table 1). As the sample size in this case is
43, D =1.07/43 =0.163. Since D
cal
> D
critical
, we reject the null hypothesis and conclude
that there exists a difference in ratings among the respondents, with regard to internal
recruitment in the event of a vacancy.
On the basis of the Median Test, the value of
2
cal
=5.25 (Table 1). Since
2
cal
>
2
critical
,
this implies that difference in median values between groups L, M and S with regard to
internal recruitment in the event of a vacancy is significant.
Table 2 reveals that average response on PRMT is 4 (Agree) for L and M, though S have
an average response of 3 (Neither Agree or Disagree); this reveals a greater preference
for internal sources among large and medium organizations than small ones. Between
groups L, M and S there exists difference in median values. As such we may infer that
strategy to recruit from internal sources may differ across different sizes of software
organizations.
H
3
: There is no difference among the respondents (L, M and S groups) regarding external
recruitment in the event of a vacancy.
H
3a
: There is a difference among the respondents (L, M and S groups) regarding external
recruitment in the event of a vacancy.
The Kolmogorov-Smirnov D value is 0.33 (Table 1). As sample size in this case is 42,
D=1.07/43 =0.165. Since D
cal
>D
critical
, we reject the null hypothesis and conclude that
there exists a difference in ratings among the respondents with regard to external
recruitment.
On the basis of the Median Test the value of
2
cal
=3.26 (Table 1). Since
2
cal
>
2
critical
,
this implies that difference in median values between the groups L, M and S with regard
to external recruitment is significant.
Table 2 reveals that the average response on EXTRNL is 3 (Neither Agree or Disagree)
for L, though M and S have an average response of 4 (Agree); this reveals a greater pre-
ference for external sources among medium and small organizations than large ones. Be-
tween groups L, M and S there exists significant difference in median values. As such we
may infer that strategy to recruit from external sources may differ across different sizes
of software organizations.
3. Human Resource Planning
H
4
: There is a difference in agreement ratings among the respondents from Large (L), Medium
(M) and Small (S) organizations regarding identification of manpower requirements
well in advance.
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18 PIYALI GHOSH AND GEETIKA
ASIAN JOURNAL OF MANAGEMENT CASES, 4(1), 2007: 525
H
4a
: There is a difference in agreement ratings among the respondents from Large (L), Medium
(M) and Small (S) organizations regarding identification of manpower requirements
well in advance.
The Kolmogorov-Smirnov D value is 0.29 (Table 1). As one sample size in this case is
43, D=1.07/43 =0.163. Since D
cal
> D
critical
, we reject the null hypothesis and conclude
that there exists a difference in ratings among the respondents, with regard to identification
of manpower requirements well in advance.
On the basis of the Median Test, the value of
2
cal
=0.676 (Table 1). Since
2
cal
<
2
critical
,
we cannot reject the null hypothesis. This implies that difference in median values be-
tween groups L, M and S with regard to identification of manpower requirements well in
advance is not significant.
Table 2 reveals that the average response on MPWR is 4 (Agree) across all sizes of
organizations; between groups L, M and S there is no significant difference in median
values. We may thus infer that software organizations of all sizes identify manpower re-
quirements well in advance.
H
5
: There is a difference in agreement ratings among the respondents from Large (L), Medium
(M) and Small (S) organizations regarding the strategy of succession planning.
H
5a
: There is a difference in agreement ratings among the respondents from Large (L), Medium
(M) and Small (S) organizations regarding the strategy of succession planning.
The Kolmogorov-Smirnov D value is 0.28 (Table 1). As the sample size in this case is
42, D=1.07/42 =0.165. Since D
cal
> D
critical
, we reject the null hypothesis and conclude
that there exists a difference in ratings among the respondents with regard to the strategy
of succession planning.
On the basis of the Median Test, the value of
2
cal
=4.857 (Table 1). Since
2
cal
>
2
critical
,
we reject the null hypothesis. This implies that difference in median values between
groups L, M and S with regard to the strategy of succession planning is significant.
Table 2 reveals that the average response on SPLNNG is 4 (Agree) for L and S, though
M have an average response of 5 (Strongly Agree). Between groups L, M and S there
exists a significant difference in median values. As such we may infer that the strategy of
succession planning differs across different sizes of software organizations.
H
6
: There is a difference in agreement ratings among the respondents from Large (L), Medium
(M) and Small (S) organizations regarding manpower planning done with 5 yearly
projections.
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RECRUITMENT STRATEGIES IN THE INDIAN SOFTWARE INDUSTRY 19
ASIAN JOURNAL OF MANAGEMENT CASES, 4(1), 2007: 525
H
6a
: There is a difference in agreement ratings among the respondents from Large (L), Medium
(M) and Small (S) organizations regarding manpower planning done with 5 yearly
projections.
The Kolmogorov-Smirnov D value is 0.28 (Table 1). As the sample size in this case is
42, D =1.07/42 =0.165. Since D
cal
>D
critical
, we reject the null hypothesis and conclude
that there exists a difference in ratings among the respondents with regard to manpower
planning done with 5 yearly projections.
On the basis of the Median Test, the value of
2
cal
=2.103 (Table 1). Since
2
cal
<
2
critical
,
we cannot reject the null hypothesis. This implies that difference in median values
between groups L, M and S with regard to manpower planning done with 5 yearly projec-
tions is not significant.
Table 2 further shows that the average response on MPLNNG is 2 (Disagree) across all
sizes of organizations; between groups L, M and S there is no significant difference in
median values. As such we may infer that software organizations, irrespective of their
size, do not have manpower planning with 5 yearly projections.
ANALYSIS
Even though highly qualified talent is more readily available in India than it is in the
United States, recruitment of software professionals seems to be a large issue facing soft-
ware organizations. This study examined the differences in recruitment strategies across
different sizes of organizations in the software industry in India. For the variable organ-
izational size (in terms of number of employees), we used various aspects of a recruitment
strategy, and have analysed the data as:
Whom to recruit: In their decision to make or buy professionals, software organ-
izations may opt for different qualification profiles of their employees, on the basis of a
number of factors like the size of the organization and requirements of skill sets (both
short- and long-term). The organizations surveyed reveal a wide diversity with regard to
whom to hire; this is reflected in the varied proportions of different qualification profiles
of employees across different sizes of organizations.
Qualification Profile of Software Employees
Professionals in the organizations surveyed have been categorized into five types: graduate
(non-engineering+ IT certification), graduate (engineering), post-graduate (engineering),
post-graduate (non-engineering) and others (including MBAs, Chartered Accountants,
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20 PIYALI GHOSH AND GEETIKA
ASIAN JOURNAL OF MANAGEMENT CASES, 4(1), 2007: 525
Graphic Designers, diploma holders and administrative staff). These are further classified
on the basis of the size of the organization (Table 3).
Table 3
Qualification Profile of Employees
Qualifications Large (per cent) Medium (per cent) Small (per cent)
Graduate (Non-Engineering) 5.06 11.3 22.5
Graduate (Engineering) 63.29 60.9 42.4
PG (Engineering) 17.23 12.9 16.3
PG (Non-Engineering) 11.18 6.6 7.9
Others 3.23 8.2 10.9
Total 99.99 99.9 100.0
Graduates (non-engineering) have the lowest presence in large organizations. Graduates
(engineering), on the other hand, have the highest presence in large organizations and
the least in small organizations. Post-graduates (both engineering and non-engineering)
have the highest presence in large organizations. Others are most commonly found in
small organizations. It is evident from Table 3 that the percentage of graduates (non-
engineering) follows a declining trend with an increase in the size of the organization
and the percentage of graduates (engineering) follows an increasing trend with an increase
in the size of the organization. With regard to large organizations, the lowest presence of
graduates (non-engineering) at 5 per cent may imply requirement of higher skill sets in
the different activities of such organizations. Relatively higher (more than one-fifth) is the
presence of post-graduates (non-engineering and engineering). This may be due to the
fact that large organizations need to take care of other activities (like HR and marketing)
apart from their core activities on a broader scale than the other two categories of organ-
izations. The wider domain of such activities may compel these organizations to look for
people with diversified skill sets. Hence there is greater variation in the qualification
profiles of employees in large organizations.
Medium-sized organizations have a comparatively higher presence of graduates (non-
engineering) and a lower presence of graduates (engineering) than large organizations.
This may hint towards requirement of lower skill sets in such organizations and a tendency
of multi-tasking by employees. This would explain a lesser presence of post-graduates
(non-engineering and engineering) than in large organizations.
Smaller organizations seem to stress more on core activities (here software develop-
ment) and hence have a lesser presence of post-graduates (non-engineering) at around
8 per cent. These organizations may also opt for multi-tasking of their employees and
would hence need less higher qualification in their employees.
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RECRUITMENT STRATEGIES IN THE INDIAN SOFTWARE INDUSTRY 21
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Source and mode of recruitment: The organizations surveyed were asked about the
different external sources of recruitment, the primary ones in use being campus, place-
ment agencies, advertisements, online and employee referrals. An attempt was also made
to capture the rates of change in such modes adopted by organizations before and after
the software industry entered the period of maturity (after 2002). Hence the questions
reflect changes in the recruitment strategies of software organizations across this phase
and the reasons thereof.
In the phase after 2002, large organizations have shown an increase in the use of the
online mode, advertisements and employee referrals to recruit staff; the biggest increase
being in the online mode (Figure 1). They revealed that they had kept the other two
sources at the same levels. Medium-sized organizations opted for more campus recruitment;
they also reported the highest increase in the online mode. But such an increase in all the
Figure 1
160
Change in Mode of Recruitment 2002 onwards
120
80
40 P
e
r
c
e
n
t
a
g
e
40
0
Large Medium
Size of Organization
Small
1
6
.
6
7
5
0
.
0
0
5
0
.
0
0
1
1
.
1
1
6
6
.
6
7
1
4
.
2
9
6
2
.
5
0
1
5
.
3
8
6
.
2
5
1
6
.
6
7
9
.
0
9
7
1
.
4
3
1
8
.
1
8
0 0
Campus
Employee Referrals
Placement Agency
Advertisements Online
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22 PIYALI GHOSH AND GEETIKA
ASIAN JOURNAL OF MANAGEMENT CASES, 4(1), 2007: 525
other modes of recruitment in such organizations seems to be at the cost of hiring through
placement agencies, which has suffered a fall of 6.25 per cent. The most remarkable in-
crease in the use of the online mode was registered in this phase by small organizations;
such organizations also went in for more campus recruitment.
It can thus be inferred that the phase of maturity has experienced an overall increase
in the use of the online mode of recruitment and an average lowered use of placement
agencies by software organizations. Campus recruitment, on the other hand, has increased
among medium-sized and small organizations, the greater increase being in case of the
latter (by a remarkable 66.67 per cent). Recruitment by advertisements seems to have
gained popularity among all the groups; the highest increase being over 50 per cent in
the case of small organizations. Employee referrals enjoyed an overall increase across all
the three categories, the highest being in case of small organizations.
Overall it can be inferred that except recruitment by campus and placement agencies
(for large organizations) and placement agencies (for both medium and small organiza-
tions), all the other modes have enjoyed an increase in usage 2002 onwards.
Change in existing strategy of recruitment: Reasons cited by large organizations in
changing their existing strategies of recruitment are dominated by focus on new skills,
followed by plans for expansion. Only 20 per cent of such organizations stated changes
in economic conditions as the driving cause (Table 4). An equal percentage of medium
size organizations opted for plans for expansion and focus on new skills as the main rea-
sons. Even in case of these organizations, the lowest percentage reveals economic condi-
tions as the reason behind changing their strategies of recruitment. For small organizations
the highest percentage reveals plans for expansion as the main reason. Surprisingly,
changes in economic conditions have had no influence in this change. Of all the organiza-
tions surveyed, 13.33, 23.53 and 45.45 per cent of large, medium and small organizations
respectively, revealed no change in strategies of recruitment.
Table 4
Reasons Behind Change in Existing Strategy of Recruitment
Reasons Large (per cent) Medium (per cent) Small (per cent)
Plans for Expansion 33.33 52.94 63.64
Company Focus on New Skills 46.67 52.94 27.27
Change in Economic Conditions 20.00 23.53 0.00
Quality Consciousness 26.67 47.06 27.27
No Change 13.33 23.53 45.45
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CONCLUSION
To conclude, we can say that recruitment strategies do vary with the size of the organiza-
tion in the software industry; in our study a majority of the dimensions of such strategies
showed variance across different sizes of organizations. The qualification profile of know-
ledge workers showed the major diversity: the percentage of employees with non-technical
background was seen to follow a declining trend with an increase in the size of the or-
ganization, while the percentage of engineering graduates was seen to follow an increasing
trend with an increase in the size of the organization. Major differences were also perceived
in modes of recruitment used by different sizes of organizations. The modes used by these
organizations include advertisements, placement consultants and recruiting on univer-
sity and college campuses. Some of them claimed to pursue very stringent recruitment
criteria. Except recruitment by campus and placement agencies (for large organizations)
and placement agencies (for both medium and small organizations), all the other modes
enjoyed an increase in usage ever since the industry entered the phase of maturity. On-
line recruitment registered the highest rate of growth among all other traditional modes
of recruitment across all the three categories of organizations surveyed; small organizations
come up as the highest users of this mode. This spells out the gradual gaining of popularity
of online recruitment over other modes of recruitment and affirms the fact that this
method is affordable for even small organizations. The only aspect in which the software
organizations have shown similarity in this study is the strategy of manpower planning.
Today, decisions about what work should be kept internally; what should be out-sourced;
the quality of incumbents and skill set requirements of the organization are as central to
recruitment strategy, as they are to the human resource strategy in particular and the
business strategy in general. Organizations in the software industry encounter the twin
problems of recognizing the skill sets in demand in the industry and hunting for human
resource proficient in such skills at the right time and right place. Besides, recruitment
strategies in such a dynamic industry also need to incorporate decisions about the balance
and mix of different types of human capital within a typical software organization.
In order to deal with so many dimensions in the recruitment of knowledge workers,
software organizations must strive to set the right recruitment strategy with manifold ap-
proaches. Organizations in this industry must realize that learning is a key area of their
concern; hence they need to consider individual learning needs of employees and address
them suitably by creating learning opportunities for them (Kodwani and Kumar 2004).
Realizing that employees have definite career needs, organizations should not only chart
different career paths in accordance with such needs, but also make such paths known
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24 PIYALI GHOSH AND GEETIKA
ASIAN JOURNAL OF MANAGEMENT CASES, 4(1), 2007: 525
to all the employees. Promotion routes within the organization should also be made pub-
lic. Openness should be the hallmark of an effective organization in this area (Pattanayak
2001). Besides, the bond between employees and their organization should be strengthened
by a number of factors like job scope, job challenge, occupational commitment, job involve-
ment and job satisfaction, thus leading to organizational commitment. This will have
multiple advantages for the organization: one it will result in a lower turnover, contribute
to greater productivity and will also attract prospective employees.
One caveat in this study is that we have focused on recruitment strategies with reference
to the size of the organization. We believe this is a reasonable strategy dimension. Yet, an
examination of the relationship between other business strategies and recruitment would
be beneficial. Another issue that needs to be addressed is the time period in which the
research has been conducted. We collected data from 2003 to 2004, when the Indian
economy and the software industry had started recovering from a recessionary trend.
Although data relating to 200405 could have added more weight to the study, our data
may be considered to be relatively recent as compared with other studies. Besides, it does
not affect the foundation of the study.
To conclude, our study confirms that strategy-size fit applies to organizations in the
software industry as well. Whatever be the industry, organizations should develop their
recruitment strategies considering their size keeping in mind the critical place of recruit-
ment in the overall strategic gamut.
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