A Case Study of China's C Information Technologies Co - Dissertation Example

?Contents Contents 1. INTRODUCTION: 2 2. RESEARCH METHODOLOGY: 7 3. LITERATURE REVIEW: 12 4. CONCLUSION: 23 List of References 26 INTRODUCTION: Human resource management has growingly become the area of concrete attention in organizations with realization of the importance of human resource as strategic asset and most of the companies are more inclined to constantly find the right person for the right job and once found then to retain that resource for long terms. Alongside with the competition growing in various sectors, Information Technology (IT) sector has also been rapid in growth as a sector as well as competition within industry. Therefore, combination of competition in Information Technology (IT) sector as well competitive resources is multiplied and human resource with Information Technology (IT) skills is of multitude competition. Among 150 economies, China being an emerging economy has also increased its pace of digitalization hence accelerated its move of growth in IT industry (as show in the figure below). This growing pace has also increased importance of IT professionals’ altogether. However, this growth is not only concerned to meet statistics but immense consideration have been given to high value performing IT professionals and hence, performance management of IT professionals of IT industry has arisen as important area that calls for due consideration (Dutta and Bilbao-Osorio, 2012). (Dutta and Bilbao-Osorio, 2012) MATA (1995) has found that proficiency of Information Technology (IT) employees of an organization on technical as well as operational front has significant positive correlation with business performance. Higher their capacity to provide more customized products or projects greater it will benefit the firm. Their competency is also important as implementation phase of the Information Technology (IT) project also require more knowledge staff than other sectors. Information technology since its development and growing phase has been progressively facing issues and challenges pertaining to its application. IT issues vary in large in number from sector to domain, size and type of the company etc. These may range from the selection and implementation problems of the system to staff issues and also variation from sector as well (Shaukat, Zafarullah, and Wajid, 2009). Among large number of failures of IT project, many of them fails and cited reason of failure is the delay and financial excess burden that it causes. In HR only, 30 percent to 70 percent of the projects fail in this respect (Sohal, Moss, and Ng, 2001). If explored reason behind these two factors is directly or indirectly human resource as it is human resource that work on implementation of designed technology and scope. Project Management in general and Information technology in specific has a dominant list of failing projects. Most of projects fail for their inability to be completed on time, within defined cost and scope. And main reason cited behind the failure of IT projects is its inability to meet the organizational need to technology update. Top ten corporate information technology failures given in images below, cites former or later the similar reason: (Top 10 Corporate Information Technology Failures) With the highlighted importance of Information Technology (IT) staff in an organization, author of the study has aimed to explore the avenue in China due to it accelerated growth. With case study methodology, author has selected China's C Information Technologies Co., Ltd. for this study. The study is aimed to find the factors, methods and strategies that are effective tools of performance management in specific relation to the performance of Information Technology (IT) personnel. Researcher has identified certain research questions addressing them will lead to get insight of the topic. Following are the research questions for the case: 1- Given the characteristics of C Company’s Information Technology (IT) project staff, what are the theoretical bases for their incentives? 2- In C Company, what are the factors that influence the performance of the Information Technology (IT) project staff? 3- In C Company, what are the strategies employed to improve the performance of the Information Technology (IT) project personnel? Author will be able to address the question with the help of the information available and with the basic knowledge of Incentives. Researcher will be able to draw conclusion from reading about incentive and if any variance exist specific to Information Technology (IT) staff of Information Technology (IT) industry to keep them competitive and un- imitable resource for the company. Further understanding will be developed about the effective and efficient way to improve performance of Information Technology personnel. This study will develop conclusion based on the information provided however, application of the results on IT professional of other industry or other country can be considered as limitation if applicability of the results are questioned. 2. RESEARCH METHODOLOGY: This research aims to study the performance improvement of the Information Technology (IT) management workers or staffs with special focus on China’s C Information Technologies Ltd. The researcher wants to explore the impact of different performance management techniques on the performance improvement of the Information Technology (IT) project staff. This research study will try to fulfil the following research objectives: To explore the theoretical basis for the incentives of the Information Technology (IT) project staff. To identify different factors which directly influence the overall performance of the Information Technology (IT) project staff To explore and study different performance management strategies and techniques in order to improve the overall performance of the Information Technology (IT) project staff The corresponding research questions which will be explored and answered by the researcher in this research study are: Given the characteristics of C Company’s Information Technology (IT) project staff, what are the theoretical bases for their incentives? In C Company, what are the factors that influence the performance of the Information Technology (IT) project staff? In C Company, what are the strategies employed to improve the performance of the Information Technology (IT) project personnel? The aim of the research study is to explore the investigate the different methods and techniques which are implemented by the Information Technology (IT) firms for managing and improving the performance of the Information Technology (IT) project staff with special focus on the China’s C Information Technologies Co. Ltd. For this purpose it can said that the research study is categorised as ‘descripto-explanatory’ (Saunders, Thornill, and Lewis, 2009, p. 140). This term of ‘descripto-explanatory’ has generated by combining the two terms descriptive and explanatory. Hence ‘descripto-explanatory’ research is the research purpose of this particular research study which is a combination of descriptive research purpose and explorative research purpose. In descriptive research purpose the researcher tends to define and elaborate the situation which is being investigated in the research study in order to come up with the actual and more detailed presentation of the situation (Aanstoos, 1983). In reference to this research study, the researcher will use the descriptive research purpose in order to explain and elaborate the performance management strategies used for enhancing the performance of the Information Technology (IT) project personnel. On the other hand, the explorative research purpose is used by the researchers to explore and investigate the relationship or connection between important variables or factors which are being investigated (Patton, 2002). In reference to this research project, the researcher will use the explorative research purpose in order to investigate the impact of different performance management techniques and strategies on the performance of the Information Technology (IT) project staff. This approach of using both descriptive research approach and explorative research approach will allow the researcher to come up with more comprehensive and generalised research findings. In order to make sure that the research objectives are fulfilled in effective and efficient manner the researcher has gone for scientific research approach. The scientific research approach is based on the belief that anything which can be measured can be explained and defined (Maylor and Blackmon, 2005). The scientific research approach has been generated from the deduction analysis and for this reason it is dependent on the observations and data generated through different methods. The final analysis is based on the application of the identified theories on the data gathered through different sources. In reference to this research study the researcher will use the scientific research in order to objectively analyse and explore the relevant data which will be beneficial for the managers while formulating the performance management strategies for Information Technology (IT) project staff. In order to make sure that the research study is valid and reliable it is essential that the researcher does not directly influence or affect any phase of the research project and remains objective while conducting the research study. The scientific research approach will also be beneficial in terms of ensuring the validity and reliability of the research study, as it makes sure that the researcher is unbiased and disconnected while conducting the different phases of the research project (Crabtree, 1992). The research philosophy adopted for this research study is positivism. The positivism research philosophy is directly linked or associated with the scientific research approach. It helps in making sure that the researcher is completely disconnected from the research study and have no influence on the final results and findings. The positivism research philosophy asks the researcher to remain in calm and composed state of mind while indulging in data collection and analysis. Apart from this the positivism research philosophy revolves around the generation of the objective elaboration and description of the situation or context which is being investigated; this is followed by the definition and explanation of the related theories, and finally the application of the theories on the data which gathered and collected through different methods in order to come up with positive end results (Jankowicz, 2005, p. 111). In reference to this research study the researcher will analyse the gathered data and information with the help of different established theories generated through extensive literature review in order to investigate the influence of difference performance management techniques and strategies on the overall performance of the Information Technology (IT) project staff in the Information Technology (IT) Company. The researcher will use the quantitative and qualitative research strategy in order to explore and investigate both quantitative and qualitative data for answering the research questions which are being investigated. The research will be mainly based on the literature review and secondary data. The researcher will indulge in extensive literature review in order to explore and identify the important variables and relationship among them. The researcher will use different literature and previous researches in order to accomplish the research objectives. The researcher will use the case study survey method in order to answer the research questions being investigated. The survey research strategy or research method facilitates the researcher in the process of collecting the large volume of quantitative and qualitative data for the research study which can be analysed and investigate with the help of different techniques and methods (Creswell, 2003). The research studies which are based on the explorative research purpose and descriptive research purpose are more effectively supported by the survey research strategy (Stewart, 1993). It is further directly associated with scientific research, positivism, and deductive analysis. As the research study will be based on the secondary research and will be desk based so that there will be no ethical issues and problems (Sekaran, 2006). The researcher will properly acknowledge and reference the secondary sources and literature and will use only authentic sources. The research study will have limited time scope because of the limited availability of the time and budget. Furthermore the research study will only be based on the secondary research and data this will also limit the scope of the research. For future research studies it will be better to also incorporate primary data in order to come up with better results. 3. LITERATURE REVIEW: Global economy has become turbulent in the past certain years. Worldwide changes of information communication technology (ICT) in 2012 is still far reaching, because of the transformational impact it has had over several sectors of economy or society via innovations, the emergence of new industries and the advent of era of hyper-connectivity (Dutta, and Bilbao-Osorio, 2012). This fast paced growth shows the future of Information Technology (IT) professionals most bright based on their competency. Though world is now a global village, but some houses of this village are faster than others. China from (Brazil, Russia, India, China) BRIC countries is also constantly increasing its pace in information and communication sector. It has gained 11th position on Network Readiness Index (NRI) (Dutta and Bilbao-Osorio, 2012). Growing with high pace require high quality of professionals in each sector and above all in Information Communication Technology (ICT) sector. Therefore, to stay aligned it is necessary to constantly evaluate the quality of professionals and their performance management. For employees’ performance management large number of methodologies is designed form different perspective (Tsui, Pearce, Porter, and Tripoli, 1997) such as Total Quality Management (TQM) (Tsui, Pearce, Porter, and Tripoli, 1997) and Management by Objectives (MBO) (Mind Tools, 2012) etc. These methodologies are designed as influencing variables vary from sector to sector as well as from organization to organization depending upon the suitability to organization as well as application (Greguras and Diefendorff, 2009). Oeij, Looze, Have, Rhijn, and Kuijt-Evers (2011) devised a Q4 model for productivity measurement that shall be applicable for various sectors. This model is relevant and important to the aim of this research for two reasons; first, model incorporates both factors of quantity and quality on both sides of input and output and accepts the importance of quality of resources input in terms of knowledge based employees as well as quality of output based not only on numbers but also appreciation from customers. Second, this study provides application of same on Information Technology Consultant Company among three entirely different sectors such as health care, manufacturing. Oeij, Looze, Have, Rhijn, and Kuijt-Evers (2011) applied this model on Logica- large Information Technology (IT) consultancy firm and addressed that impact of changing environment so as to retain the successful Information Technology (IT) personnel to the firm to maintain overall employee morale and firm productivity. (Tsui, Pearce, Porter, and Tripoli, 1997) Information Technology (IT) has redesigned the businesses today (as shown in the image below) and has become as integral part of all businesses today with varying level of Information Technology (IT) personnel involvement. (Lewis, 2003, p. 99) Performance management varies from sector to sector due to varying factors that play dominant role in that particular sector. Similarly, IT issues vary in large in number from sector to domain, size and type of the company etc and these factors directly or indirectly are influencing the professional competency and performance. For instance, Shaukat, Zafarullah, and Wajid, (2009) studied problems in IT implication in developing country and specifically to manufacturing and banking sector of Pakistan and highlighted issues; some pertaining to IT staff include: lack of trained staff, employees’ non cooperation, management skirt to investment, lack of proper IT planning and selection of appropriate IT-system. In another instance, Educause highlighted top 10 issues of IT leaders in higher education sector face in respect of four categories: issues that are critical to strategic success, issues that are expected to increase in significance, issues that demand the greatest amount of IT leader’s time and issues requiring greatest financial and human resource expenditure (Grajek, and Pirani, 2012). Issues highlighted for higher educational sector are as follows: (Grajek, and Pirani, 2012) Overall project management general is explicit in reasons of failure or success, many surveys have been done to find the basic of reason of failure in project so as to incorporate improvement in succeeding project and resist failure. The Chaos report (1995), The Bull Survey (1998), The KPMG Cananda Survey (1997) and the OASIG survey (1995) all had mentioned with percentages impact of various factors (Failure Rate). Results of Bull Survey (1998) and The Chaos report (1995) are given below stating many factors that highlighted inability on part of human factors. THE BULL SURVEY (1998) (Failure Rate)) The Chaos report (1995) (Failure Rate) In large organizations of other sectors also Information Technology (IT) has a dominant role to play in every department (as shown in the image below). However, Information Technology (IT) personnel in these sectors are required to focus on Information Technology (IT) related issues only irrespective of type of industry. For instance, personnel managing the entire system of Information Technology (IT) at University or manufacturing concern shall only be concerned with technical matters of Information Technology (IT) and no information and knowledge about the degree courses are required to perform. (Lewis, 2003, p. 107) On the other hand, personnel at Information Technology (IT) specific companies are required to play higher degree role. At Information Technology (IT) firm, manager should have good blend of communication and management skills, sales person is expected to be good marketer, where as technical staff is more required to have strong command at solving possible technical issue all these along with strong command at Information Technology (IT) knowledge. Therefore, Performance management mechanism for Information Technology (IT) firms is also required to specific as it must account for the growing number of factors that are influencing overall performance of Information Technology (IT) personnel. The Atlanta Chapter of the Association of Information Technology Professionals (AITP) in its fourth round provided some information with industry professionals and leaders (Kosar, 2012). They mentioned three areas where employers give deep consideration while hiring Information Technology (IT) professional; which are: 1. Street Smart: Panelists’ stressed the need of Information Technology (IT) professionals to be not only Information Technology (IT) smart but also street smart that has sense of business and capacity to use technology to benefit business in required way than just an aim to hit the nail. 2. Adaptability or Self Defense: Panelists’ also mentioned that they go to length to evaluate the business sense of Information Technology (IT) individuals by giving them selection option out of broad spectrum and judgment based on their capacity to defend their selection than adaptability to one given solution. 3. Broad Experience: the Right Mix: employees today for their businesses look for Information Technology (IT) professionals who have broad experience horizontally in various industries so as their business sense is also developed with technical knowledge. It is evident from the above given views of industry employers that in Information Technology (IT) professionals’ employers seek communication and interpersonal skills, customer service, initiative, and technical ability applied with a business outlook.  Hence, promised, highly rewarding and successful Information Technology (IT) careers to offer industry employers seek in Information Technology (IT) professionals’ good manager/ leader and or businessman. Contradiction to this is the fact that most of IT projects have high probability of failure, this failure though accounts for large number of factors, most referred ones include inability of project to complete on time or within cost or within scope (Failure Rate)). Among many studies relevant to general project management and specifically to information technology project management are similar facts. For instance, inability to meet the construction of a company is a project failure in domain of Construction Company and failure of IT project professionals is their inability to get the technology aligned with the needs of company. If analyzed, both will have similar reason, among many, lack of team coordination or management concern to the overall needs of the project. Alike, impact on experts of other domain, success or failure of IT project is equally beneficial or detrimental to the overall personal as well professional satisfaction of the IT staff. Along with all the capacities that an Information Technology (IT) professional is expected to express what adds to the need to the need of better incentives for professional associated with this sector is cause of higher health hazards to them. Since Information Technology (IT) personnel spent larger amount of time in-front of computer screen and components, longer or unusual working hours as Information Technology (IT) problem can arise any time; following health problems are more likely to be found in Information Technology (IT) personnel (Crisp360, 2011: 1. Thrombosis 2. Heart disease 3. Cancer 4. Carpal Tunnel Syndrome 5. Vitamin D deficiency 6. Bacterial infections 7. Anxiety, stress, and depression 8. Insomnia 9. Lower back pain 10. Neck and eye strain Most of these can b prevented by taking short breaks and regular few steps walk to get blood back in normal flow while taking adjustments on sitting as well as daily routine habits. Important to mention is that least considerations are given to any of these small preventive measures that reduces overall productivity of the Information Technology (IT) personnel and increases cost to firm by higher medical and insurance expense. To evaluate overall performance management it is also important to know about the performance drivers for Information Technology (IT) professionals. Recent survey from Bizo about professionals who are more likely to change their jobs as they get better opportunity reported that after consultants (288 percent) Information Technology (IT) professionals are 194 percent are more likely to switch jobs (Brassfield, 2012). This has been shown in the figure below: (Brassfield, 2012) Lounsbury, Studham, Steel, Gibson, and Drost conducted a research for personality traits and career satisfaction of Information Technology (IT) professionals with 9011 Information Technology (IT) professionals in different domains and companies in US and to be specific 33 percent of the respondent from technology services, 1 percent from science and technology and 11 percent from telecommunication (Lounsbury, Studham, Steel, Gibson, and Drost). Lounsbury, Studham, Steel, Gibson, and Drost found that by personality Information Technology (IT) professionals are emotional resilient, analytic, tough mindedness, openness and customer service satisfaction, intrinsically motivated, open to new experience and learning. Information Technology (IT) professionals are less at: conscientiousness, image management and less visionary in their thinking style. These are attributes that get them satisfaction and hence, are professional career driver in Information Technology (IT) industry. China to take improved positions on tech-fronts is offering greater opportunities for Information Technology (IT) professionals and most of the career ranking guides specific to China, rate Information Technology (IT) professional in top five profitable careers. Information Technology (IT) has fetched most of operations-based jobs from US and Europe (by offering low cost in form of low wages to labor) that has declined trade deficit of US with China at cost 2.8 Million Jobs Between 2001 and 2010 (Stockdale and Mclntyre, 2011). Though directly this switch is mainly in manufacturing sector however Information Technology (IT) intervention in every sector must also contribute sizeable portion in this pie as well. With overall review of the industry trait, performance management mechanisms and growing China’s intervention to take lead role as emerging economy, it makes this study interesting about what attributes would keep the momentum grow in China’s information technology professional’s industry. 4. CONCLUSION: This research study is aimed at evaluating the performance management mechanism of Information technology professionals’ specifically in China. For the purpose case study method has been adopted and case under consideration is China's C Information Technologies Co., Ltd. Author selection of Chinese company and specifically Information Technology (IT) Company of China is with support of following three reasons: first, fast paced growth that has become the most dominant character of every sector in China. According to Global ICT report, among BRIC countries China is constantly striving to increase its pace in information and communication sector and currently it has 11th position on Network Readiness Index (NRI) (Dutta and Bilbao-Osorio, 2012). Second, another very dominant character of today’s China that it has imported jobs. Huge transfer of operational industry from US and Europe has shifted to China with almost 2.8 Million jobs between 2001 and 2010 (Stockdale and Mclntyre, 2011). With this growth, directly and indirectly information technology sector has grown and so does IT professionals do. Last, but to mention not least, is information technology lies among top five careers in China. This research study will highlight that with large number of varying performance management mechanism existing, there should be one specifically designed for the Information Technology (IT) professional like Q4 model by Oeij, Looze, Have, Rhijn, and Kuijt-Evers, (2011). To support the requirement, researcher provides fact the competitiveness requirement among Information technology professionals has also grown to widened as employers of Information Technology (IT) professionals not only require employees to be competent Information Technology (IT) professional but also considerate business thinkers with their spectrum out of box from Information Technology (IT) to broader spectrum of overall business. Atlanta Chapter of the Association of Information Technology Professionals (AITP)’s Information Technology (IT) professional leaders’ requirement from Information Technology (IT) professionals along with other general requirements of managers to following specific (Kosar, 2012): 1- Street Smart: Information Technology (IT) professionals with more understanding of extracting benefit from IT for business than simply knowing Information Technology (IT) rules. 2- Adaptability or Self Defense: Have capacity to take decision regarding suitability of their suggested Information Technology (IT) idea for business and stand on it than just giving Information Technology (IT) adaptability to the given ones. 3- Broad Experience: the Right Mix: Information Technology (IT) professionals with more horizontal (across industries) experience are preferred by employers than with more vertical (similar industry) experience. Increased demands from Information Technology (IT) professionals are also complimented by larger health hazards these people are prone to due odd working schedules. Hence, investment of firms on these personnel is higher in terms of insurance and medical therefore, this aspect should be considerable thought in performance management of these professionals. Though this study will benefit with performance management plan specific to information technology professionals this can also be a limitation with respect to its addition to overall industry as the plan has been specific with characteristics of China's C Information Technologies Co., Ltd. and therefore, its applicability for other companies within or outside China is not a part of this study. It is therefore recommended that suggested performance management system shall further be explored with respect to its adaptability for other companies within and outside China and suggestions shall be made for improvement. 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