Promoting Gender Diversity at Work Place - Implications on High Performance work systems in Software Industry in India

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(AJIRSET)

Available online at: www.engineeringjournal.info

RESEARCH ARTICLE

Promoting Gender Diversity at Work Place - Implications on High

Performance work systems in Software Industry in India

Manu Melwin Joy

Research Scholar, School of Management Studies, Cochin University of Science and technology, India.

Abstract

Research done in the past two decades has proved that women constitute a significant untapped source of human capital. With the advent of information technology and enhancement of educational infrastructure, more qualified women are venturing into jobs previously considered suitable for men. Since it is crucial for companies to attract and retain their employees in the highly competitive environment, creating women friendly workplace has been receiving due attention from top management. With majority of studies supporting the positive effects of promoting gender diversity such as creativity and innovation, new generation IT firms are adopting practices that ensure a gender diverse work environment congenial for women employees. The current study explores whether gender has any influence on High Performance Work System initiatives adopted by software firms in India. A sample of 300 employees was selected from 15 software companies and data was collected using structured questionnaires. For data analysis, one way ANOVA test was carried out using SPSS software. Results showed that female employees perceived higher levels of selection & recruitment and compensation& reward dimensions of High Performance Work Systems compared to that of male employees working in software industry in India.

Keywords: High Performance Work Systems, Gender diversity, Software industry.

Introduction

A recent research done by the International Labor Organization [1] shows that there has been an increase in work force diversity across the globe. Several researchers have confirmed the trend of change in work force diversity, especially in service sector [2,3]. The creation of better opportunity for women helps the firm with access to a greater talent pool. The economic case of gender diverse workplace is that it may result in a firm to gain more profit and this group may have unique attributes which add to value for shareholders [4]. Robinson & Dechant [5] argued that the participation of women in top management is expected to have a positive impact on firm performance. McKinsey and associates [6] found that gender diversity in top management has high correlations with organizational excellence. A survey conducted in 2005 by the Chartered Institute of Personnel and Development (CIPD) in the United Kingdom

organizations with diversity policies claimed that innovation and creativity improved as a result.

The term diversity is commonly used to capture all types of differences in the workplace which includes differences in social identities such as gender, race, ethnicity, sexual orientation, class, nationality and religion and difference in individual characteristics such as idiosyncratic attitudes, values, cognitive styles and preferences [7]. Gender diversity can also be defined as the consideration of the difference skills and potentials of male and female employees as equal resources. In the context of work setting, gender diversity refers to the proportion of male and female employees in the workplace that may influence the way people communicate and work with each other in that area and affect the firm’s performance [8]. Even though

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new initiatives to ensure gender diversity at workplace, the perception of employees towards these practices is still under researched. The current study tries to find out gender difference in the perception of the four dimensions of High Performance Work Systems in software industry.

Literature Review

High Performance Work Systems

Within management literature, the basic assumption underlying most of HRM research is that employees are the most valuable asset that organizations can develop to ensure high levels of firm performance [9]. Because of the rise of interest for HRM practices within management studies, a new philosophy of best practices have emerged which are commonly referred to as high performance work systems [10], high commitment or high involvement HRM [11] out of which High Performance Work Systems is the least studied. HPWS can be defined as a bundle of different but interrelated HRM practices with a specific structure developed to maximize organizational performance through improving employee skill development [12]. It was found that the synergistic effect of a bundle of HRM practices like that of HPWS has the potential to increase organizational performance by improving various key elements of the work environment [13].

From studies done across the globe in the area of high performance work systems, it was found that these bundle of practices are highly correlated to firm performance. Considering the context of Greece, researchers Katou & Budhwar [14] tried to find out the effects of HPWS on firm performance using a sample of 200 Greek organizations operating in the 25 manufacturing industries. They identified four dimensions of HPWS such as staffing and recruitment, performance appraisal, compensation and rewards, and training and development as the independent variables.

The main objective of the study was to investigate the effects of HPWS on employee skills, attitudes and behaviors as the mediating variables between HPWS and firm performance.

The results showed significant positive relationships between each dimension of HPWS and firm performance. It also showed that HPWS do not have a direct relationship with firm performance, but is mediated by employee skills, attitudes and behaviors [14].

Research Methodology

The current research has adopted descriptive framework since the study tries to describe the influence of gender on perception of High Performance Work Systems. The tool developed by Boselie and associates [15] to assess the perception of employees on the four dimensions of High Performance Work systems was employed for data collection. With the help of structured questionnaires, primary data was collected from software professionals with more than one year of experience working in 10 software firms situated in two Techparks in Kerala during the time period from June 2015 to October 2015. Out of the 312 respondents, 168 were males and the remaining 144 were females. Multiple regression analysis using SPSS software was used to carry out data analysis

Data Analysis

Influence of Gender on Staffing and

recruitment Dimension of High

Performance Work Systems

One way ANOVA was used for testing hypothesis H1 which were about the significant difference in staffing and recruitment dimension of HPWS across gender. H1 was stated as:

H1 - There is a significant difference in the staffing and recruitment dimensions of High Performance Work Systems across gender. ANOVA-test results for gender and staffing and recruitment dimension of High Performance Work Systems

Sum of squares df Mean square F Sig HIWP –S&R

Between groups 1.145 1 1.145

2.249 .002*

Within groups 147.335 310 .449

Total 149.724 311

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The above table shows the one way ANOVA results done on staffing and recruitment dimension of the High Performance Work Systems with gender. The results showed that the values are significant at 5% level. Thus, there is a difference in the staffing and recruitment dimension of the High Performance Work Systems with regards to gender of the employees. H1 is therefore accepted. The mean value of male employees was found to be 3.64 and that of female employees was found to be 3.88. So it can be inferred that female employees perceived higher levels of staffing and recruitment dimension of the High Performance Work

Systems compared to that of male employees.

Influence of Gender on Performance

Appraisal Dimension of High

Performance Work Systems

One way ANOVA was used for testing hypothesis H2 which was about the significant difference in performance appraisal dimension of HPWS across gender. H2 - There is a considerable difference in the performance appraisal dimensions of High Performance Work Systems across gender. ANOVA-test results for gender and performance appraisal dimension of High Performance Work Systems

Sum of squares df Mean square F Sig HIWP - PA

7.539 .129

Total 157.291 311

(* Indicates items significant at 5% significance level)

The one way ANOVA results done on performance appraisal dimension of the High Performance Work Systems with gender showed that the values are not significant at 5% level. Hence, there is no difference in the performance appraisal dimension of High Performance Work Systems with regards to gender of the employees. H2 is therefore rejected.

Influence of gender on compensation and rewards dimension of High Performance Work Systems

Using one way ANOVA, hypothesis H3 which were about the significant difference in compensation and rewards dimension of High Performance Work Systems across gender was tested. H3 was stated as:

H3 - There is a considerable difference in the compensation and rewards dimensions of High Performance Work Systems across gender.

ANOVA-test results for gender and compensation and rewards dimension of High Performance Work System

Sum of squares df Mean square F Sig HIWP –C&R

Between groups .284 1 .284

.347 .473

Total 265.372 311

The one way ANOVA results done on compensation and rewards dimension of the High Performance Work Systems with gender showed that the values are not significant at 5% level. Hence, there is no difference in the compensation and rewards dimension of High Performance Work Systems with regards to gender of the employees. H2 is therefore rejected

Influence of Gender on Training and

Development Dimension of High

Using one way ANOVA, hypothesis H4 which were about the significant difference in training and development dimension of High Performance Work Systems across gender was tested. H4 was stated as:

H4 - There is a significant difference in the training and development dimensions of High Performance Work Systems across gender.

ANOVA-test results for gender and training and development dimension of High

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Sum of squares df Mean square F Sig HIWP – T&D

8.629 .004*

Total 231.129 311

The above table shows the one way ANOVA results done on training and development dimension of High Performance Work Systems with gender. The results showed that the values are significant at 5% level. Thus, there is a difference in the training and development dimension of High Performance Work Systems with regards to gender of the employees. H4 is therefore accepted. The mean value of male employees was found to be 3.29 and that of female employees was found to be 3.58. So it can be inferred that female employees perceived higher levels of training and development dimensions of High Performance Work Systems compared to that of male employees.

Findings and Discussion

The analysis showed that female employees perceived higher levels of selecting & recruiting and compensation & reward dimensions of High Involvement Work Processes compared to that of male employees working in IT industry. This is because of the gender diverse strategies adopted by software firms. Software industry in India has adopted best practices in area of HR to promote the employment of women [16]. But to tap the full potential of women employees, gender diversity should penetrate to all levels of organizational ecosystem. At individual level, each woman can bring about the desired changes through conscious effort and overcome stereotypes. By recognizing their skills, women can reinforce their collective bargaining power and become role models for others. At societal level, multiple role models for women is promoted rather than focusing on redefining gender relations. In orthodox society, career oriented women are forced to give secondary preference to their work and they tend to feel guilty of spending much time at work. Restricting them to the stereotype of good wives or mothers, majority of women tend to leave their

careers prematurely. To bring an end to this trend, a sweeping change at societal level should happen. Organizational level, top management should adopt a supportive stand for women to realize their full capabilities. Even though most organizations have given employment opportunities for women, they have failed to empower them by assigning them with leadership roles. Policies and procedures have to be in place to attract women to the top management so that gender diversity at board roam can be maintained. Apart from creating forums for formulating policies against sexual harassment, surveys need to be carried out for voicing problems of women. At governmental level, policy makers should introduce suitable legislation to ensure diversity across workplace. This may include initiatives like transportation facilities for women, security for women working at odd hours and forum for grievance redressal. For promoting these initiatives, government can provide tax holidays for industries implement such initiatives [17].

Conclusion

Sweeping changes in the past have made software industry the largest private sector employing women in India. Employment in software industry has challenged many restrictions previously imposed on women and has provided ample opportunity for career mobility. Because of the gender diverse strategies adopted by firms such as meritocracy and flexi time, more and more women were attracted to the industry. But studies show that the rewards are enjoyed by the privileged few which include young, educated, urban women with upper caste background. In reality, working conditions put greater hurdle to women for entry and career growth. Therefore, it is time for industrial leaders to do some soul searching. More strategies focusing on gender diversity at work setting should be in place to ensure the attraction, empowerment and retention of women working in software industry.

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