Challenges and Strategies in Industry †MyAssignmenthelp.com

Question: Discuss about the Challenges and Strategies in Industry. Answer: Introduction Recruitment procedure of corporations includes various steps such as attracting potential candidates, evaluating the qualification of applicants, and posting them in the right job. The employees assist in the expansion of companys growth, therefore, the human resource management is required to select the right person for right job. The human resource management of software industry faces various challenges in their recruitment procedure. For succeeding in the software industry, it is necessary that software companies hire talented employees. This report will evaluate the challenges faced by corporations in the software industry. Further, the report will provide suggestions based upon HRM policies to address such problems. Software industry comprises development manufacturing and selling of software by various companies. Software organisations are making different kinds of software which companies are using in their accounting and production process. According to Lavie (2007), Software companies provide services like consultation data storage, data recovery and much more. According to estimation in 2013 this sector valued at the US$407.3 billion (approx.). It is growing with an estimating five percent growth rate. Microsoft, IBM, and SAP are some of the most successful companies in this industry. As per Lee et al. (2010), this sector started getting popular in 1953, and since that time they have never seen a negative growth. This industry has seen remarkable growth in last two to three decades, and it is generating millions of jobs in different parts of the world. Most of the government institutions and other industries are getting a significant amount of assistance to the facilities which software sec tor is providing in recent times. Every industry has to face various kinds of problems in the hiring process as they failed to get the desired candidate because of some reasons. Below are some of the major issues which software industry faces in the recruitment process. Software corporations require specific knowledge of different software and technology in a new employee. According to Agrawal, Khatri Srinivasan (2012), there has to be various tests procedures and infrastructure to check the ability and capabilities of candidates; all these require a high amount of time.Hours and even days are being consumed in selection processes of a software company. The recruitment process is significantly exhausting; some of the candidates leave in between the selection procedure. Due to lengthy recruitment process company has to face the consequences regarding talent loss. For example, Google prefers to hire only the talented programmers from the industry. Therefore, the recruitment process at Google takes around six to eight weeks. Human resource department prefers to check a candidate at various levels. They do not just check their technical skills, but they also prefer to know the social behaviour and logical knowledge of every candidate. Omnipresent Recruitment To recruit skilled and talented employees, human resource department has to explore various sources of recruitment. As per Swart Kinnie (2003), they have to check job applications of a large number of candidates through different sources, such as LinkedIn, Facebook, Twitter and their online portal. Software companies also need to take the assistance of various human resource firms to select the most eligible candidates. Potential candidates like to take the support of social media websites to find suitable jobs for them. The human resource department of companies face difficulties in maintaining a positive image over different social media platforms. The candidates can provide wrong information regarding their qualification over social media platforms; the human resource department finds difficulty in assessing such information and selecting employees based on such information (Agarwal Thite 2003). In the software industry, the demand for skilled and experienced employees is considerably high; it is an employee-oriented industry because usually talented employees decide their terms of working contract. According to Antony et al. (2007), Software corporations pay high salary packages and incentive schemes to talented employees to attract them in the organisations which can affect the budget of the company. The human resource department of enterprises, which did not have a large number of resources, find it difficult to attract or retain talented employees. Most of the companies did not fulfill their requirement of skilled programmers which causes them to work with limited employees, which increase the pressure of workers. High pressure at a job is one of the primary reasons for a developer to quit their organisation. The supply of skilled and talented programmers is low in the market, which causes human resource department to hire employees from foreign countries. If a large number of employees are from different countries, then corporations are require establishing diversity policies; without better diversity policies human resource department cannot recruit candidates from other nations (Richardson et al. 2010). Human resource department does not have any direct contribution to profit earned by a company; this issue creates funding problems for HR department because they fail to convince top-level management to allow the necessary amount of funds which is required to hire best candidates that are available in the industry. As per Chapman Webster (2003), for analysing talent and skills of candidates, human resource department require investing a large number of resources over machinery and test objects. Usually, the top level management did not allow a large budget for human resource department, which makes it difficult for them to select the right person for right job. In the software industry, a large number of corporations are start-ups; they did not have the proper funding or sources to hire talented employees. Therefore, most of the talented employees are hired by the large organisations which can be negative for the growth of start-ups. Millennial Retention People who were born in between the 1980s to 2004 are known as millennial. In the software industry, the majority of workers are young as compared to other sectors. Most aged people are not good with technology as compared to young adults. Issac, Rajendran Anantharaman (2004) provided that the average age of employees in the software industry is in between 24 to 32 years. The human resource department of modern companies finds it difficult to retain millennial employees in the organisation because they prefer to change companies quickly. The retention challenges are faced by even large software companies such as Apple, Microsoft, and Google. Most of the employees prefer positive and cooperative organisational environment over high salary packages. Therefore, many of talented employees establish their start-ups. Without an effective organisational environment strategy, it is difficult for human resource management to retain employees in the company. The growth of software industry is significantly high as compared to other industries, the companies which failed to keep up with the fast pace of growth, failed in the industry. As per Edison, Bin Ali Torkar (2013), for sustaining their growth, corporations are requiring to hire and retain talented employees in the organisation. High level of competition creates several problems for human resource department because competitive organisations pay large amount of salary package to attract talented employees in their corporations. Human resource department faces difficulty in retaining employees because they prefer to go for companies with higher benefits. In case of start-ups, they do not have significant sources which make it significantly difficult for them to recruit talented employees. Recommendations For improving the recruitment procedure in the software industry, corporations can implement various strategies of human resource management. These policies can benefit the company by recruiting and retaining talented employees. Following are few examples of HRM strategies which can be implemented by software companies. Most of the software corporations recruit employees through online portals or social media websites. The human resource management should include a separate department for talented profiling candidates through social media platforms. As per Christensen Hughes Rog (2008), the department should maintain a positive organisational image over social media sites and analyse various online application to find talented employees. Organisations should focus their sources on online platforms because it also reduces the recruitment expenditure of corporations. The human resource department can find and analyse the qualification of candidates through online portals. There is a significant demand of talented programmer in the software industry. High demand forces companies to pay high salary packages to talented employees. The companies can avoid such expense by providing training to their employees. Training the employees on their job can improve their skills and productivity which can benefit the companies. Organisations can establish a lock-in period for trained employees in the enterprise which can improve the retention of employees (Chan Kuok 2011). Most of the talented employees in software industry prefer positive working environment over high salary packages. The top-level managers of corporations should promote and implement policies regarding positive and cooperative culture in the company. A positive culture also attracts the talented employees in such organisation. For example, Google is known as the best place to work because of their positive environment culture. Google provide their employee's space to work, and their projects and the culture in their workplace is positive. This strategy allows Google to attract the best talent from the industry and sustain their future development (Lievens, Van Dam Anderson 2002). Conclusion Form the above report, it can be concluded that software industry in one of the fast-growing industries which include the development of software product and applications. The competition between software corporations is considerably high, and it is an employee-oriented industry. The recruitment procedure for software companies includes various problems such as high expenditure, long process, strong competition, the demand for talented workers, different sources of recruitment and retention of employees. For sustaining future growth, human resource department requires to employ and retain talented employees. The corporations can implement various HRM policies to address such challenges such as training facility can satisfy the demand for skilled workers, online process can reduce the expenditures and establishment of positive culture can improve retention of employees. These strategies can be valuable for the companies since they augment the development of the corporation. References Agrawal, N. M., Thite, M. (2003). Human resource issues, challenges and strategies in the Indian software industry.International Journal of Human Resources Development and Management,3(3), 249-264. Agrawal, N. M., Khatri, N., Srinivasan, R. (2012). Managing growth: Human resource management challenges facing the Indian software industry.Journal of World Business,47(2), 159-166. Antony, J., Jiju Antony, F., Kumar, M., Rae Cho, B. (2007). Six sigma in service organisations: Benefits, challenges and difficulties, common myths, empirical observations and success factors.International journal of quality reliability management,24(3), 294-311. Chan, S. H., Kuok, O. M. (2011). A study of human resources recruitment, selection, and retention issues in the hospitality and tourism industry in Macau.Journal of Human Resources in Hospitality Tourism,10(4), 421-441. Chapman, D. S., Webster, J. (2003). The use of technologies in the recruiting, screening, and selection processes for job candidates.International journal of selection and assessment,11(2?3), 113-120. Christensen Hughes, J., Rog, E. (2008). Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organizations.International Journal of Contemporary Hospitality Management,20(7), 743-757. Edison, H., Bin Ali, N., Torkar, R. (2013). Towards innovation measurement in the software industry.Journal of Systems and Software,86(5), 1390-1407. Issac, G., Rajendran, C., Anantharaman, R. N. (2004). A holistic framework for TQM in the software industry: a confirmatory factor analysis approach.The Quality management journal,11(3), 35. Lavie, D. (2007). Alliance portfolios and firm performance: A study of value creation and appropriation in the US software industry.Strategic management journal,28(12), 1187-1212. Lee, C. H., Venkatraman, N., Tanriverdi, H., Iyer, B. (2010). Complementarity?based hypercompetition in the software industry: Theory and empirical test, 19902002.Strategic Management Journal,31(13), 1431-1456. Lievens, F., Van Dam, K., Anderson, N. (2002). Recent trends and challenges in personnel selection.Personnel Review,31(5), 580-601. Richardson, I., Casey, V., Burton, J., McCaffery, F. (2010). Global software engineering: A software process approach. InCollaborative Software Engineering(pp. 35-56). Springer Berlin Heidelberg. Swart, J., Kinnie, N. (2003). Sharing knowledge in knowledge?intensive firms.Human resource management journal,13(2), 60-75.