EFFECTIVE RECRUITMENT AND SELECTION SYSTEM FOR THE IT SOFTWARE INDUSTRY IN INDIA Thesis submitted for the award of the Degree of

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1 EFFECTIVE RECRUITMENT AND SELECTION SYSTEM FOR THE IT SOFTWARE INDUSTRY IN INDIA Thesis submitted for the award of the Degree of Ph.D. (BUSINESS ADMINISTRATION) ABSTRACT By Brigadier. P.K. Saxena Under the guidance of Dr. Mohammad Israrul Haque Professor Department of Business Administration AMU, Aligarh Dr Bhupen Srivastava Professor Department of Organizational Behaviour & HRM IMI, New Delhi DEPARTMENT OF BUSINESS ADMINISTRATION FACULTY OF MANAGEMENT STUDIES AND RESEARCH ALIGARH MUSLIM UNIVERSITY ALIGARH (UP) INDIA YEAR OF SUBMISSION 2011

2 EFFECTIVE RECRUITMENT AND SELECTION SYSTEM FOR THE IT SOFTWARE INDUSTRY IN INDIA Introduction The increasing size and complexity of organizations, the intensive use of technology, combined with changing socio-cultural norms have contributed with immense complexity to Human Resources Management aspects of managing people in organizations. The Information Technology (IT) Software Industry in India has attracted worldwide attention recording phenomenal rates of growth, achieving the status of an economy driver for a country, emerging as a superpower of the Twenty First Century. It is equally vital that this trend continues in the midst of global challenges and competition. While the system in vogue has been meeting the current challenges, little research has been done to determine the effectiveness of recruitment and selection system for the IT Software Industry in India. The purpose of this research is to determine an effective recruitment and selection system and assist the IT Software Industry in India in meeting the challenges of the coming decades. Research Objectives Keeping in view the global demand of software development and the unique status acquired by the IT software companies in India in terms of quality, cost competitiveness, availability of trained manpower and the infrastructure, there is a felt need to shape the IT software industry in India, for the future. For keeping India s competitive advantage from declining, it is imperative that an effective system of recruitment and selection be identified. It has been accepted that certain attributes are required for employees employed in the IT software development and these require to be 1

3 tested by a system that can be evaluated for its effectiveness against measurable output variables that reflect the output / performance of IT software companies. There is also a requirement to evaluate the domination of certain conditions that software companies consider such as the academic record, socio economic conditions and work experience, for their influence on the effectiveness of the recruitment and selection system. Lastly proper evaluation of other factors influencing effectiveness of output / performance variables requires to be studied to arrive at a scientific model that will meet the felt need. This would result in immense savings in time, effort and costs to all stakeholders. Objectives The purpose of this research is to determine the key variables in an effective recruitment and selection system for the IT Software Companies in India. In order to accomplish the research, the objectives formulated are: 1. To evaluate the various recruitment and selection techniques that IT software companies in India employ. These include interviews, group tests, psychological tests, intelligence tests, technical tests and others. 2. To determine key employee skill gauges, like academic record, socio-economic conditions, overall work experience and experience in a specific field. 3. To determine key company performance metrics, like growth in sales, net profit margin, revenue/profit growth and average net profit per employee. 4. To determine the relationship between key company performance metrics to selection techniques, thereby obtaining key variables in an effective recruitment and selection. 2

4 Review of Literature A review of literature was undertaken to study the current state of recruitment and selection in IT Software Industry in India. It has been accepted that the quality and maturity of the Indian software industry has been realized globally. With technology and processes undergoing rapid transition, the investment in human resource and its development can reap rich dividends. It emerges that India is among the choices for low cost programmers because of several factors and one of them being the widespread knowledge of English language. Some of the other important factors that contributed towards this success are the availability of human capital, especially the stock of engineers available in India. Another important factor that has contributed has been the geographical location of the country that has helped several nations explore capability to operate round the clock. It can also be stated that the base of Indians in every part of the world also helped bridge several gaps related to red tape and human networking. Not withstanding these, a dispassionate reappraisal of the education facilities to meet the IT boom amply highlights that the current system is at best only meeting the present demand and supply". Literature highlights that like other countries, India may also face possibility of an upcoming talent shortage problem on account of a few factors. The Indian Government has been aware of the complexities and has contributed by launching a Technical Education Quality Improvement program, accepting of proposals like setting up venture capital funding, as well as tie-up for bilateral cooperation in IT Sector with 32 countries. India has also set up an efficient organization, the National Association of Software and Services Companies (NASSCOM), which provides reliable information, including individual supplier profiles, through the Internet. 3

5 The Indian software industry has shown flexibility in growing acceptance and adoption of the newly emerging standards of quality management such as Capability Maturity Model (CMM), a worldwide certification developed by the Software Engineering Institute of Carnegie Mellon University. The quality maturity of the Indian software industry can be judged from the fact that India has one of the largest number of companies being quality accredited and serving the needs of the Fortune 500 companies. The importance of effectiveness in recruitment and selection for organizational performance has been amply highlighted as being critical to organizational success. One of the possible ways is by initiating the screening process to include psychometrics with other tests for selection and recruitment. It is only logical that such psychometric testing will prove to be scientific and result oriented but whether the IT Companies are undertaking such processes and incorporating it in their recruitment and selection system is the purpose of this research. Studies show that Psychometrics is best used in conjunction with other assessment and selection tools such as interviews. With quality and cost assuming greater importance, helping the firm save money by reducing turnover would help to cut expenses and paperwork in recruitment and contribute to the organization. Several other advantages come to light while undertaking such tests such as the speed, efficiency and total-in-time recruitment can really reduce the time to hours and days rather than weeks. There is however resistance to psychological tests in several countries including China, because such tests result in a potential loss of face for applicants, are invasive in privacy and also statutory provisions in some countries prohibit their use. The laws in India permit use of psychometric tests. These have been used in organizations like the defense forces, where they have stood the test of time. 4

6 Not withstanding the likely changes in trends of recruitment and selection, selection for employment in the IT Field is still based on academic performance and possibly marginally on experience, if considered necessary, by the employer. It is seldom on aptitude or scientific personality evaluation as done in scientifically selecting executives or officers as leaders in other industries and organizations like the services. A query that comes up is if recruitment and selection of a potential IT Industry employee can be undertaken scientifically, based on aptitude for software programming so as to make the employment of the professional effective. For this, it is important that IT companies know what to measure and how to measure when it comes to recruitment. Countries like China are following closely. Having achieved a great deal to improve, they are likely to pose a major challenge to India. In comparison with India, China has an inherent strength as an outsourcing destination. It has a huge domestic software market that attracts domestic software firms as well as foreign software firms. Especially, after its accession to WTO, China will promote social and economic development through the wider use of information technology. China has absorbed foreign direct investment (FDI) many times than that by India. The information and telecommunication infrastructure of China is considered superior to that of India. Greater political and social stability also give the investors more confidence and lastly competitive advantage of lower cost of manpower in China, is another important factor. However, there are some aspects, such as quality control processes, communication/culture etc. where India is far ahead of China. It is vital that this edge remains with India in the coming decades. 5

7 Setting of the Research Problem To state briefly, the research purpose is to determine the key variables in formulating a model for an effective recruitment and selection system for the IT Software Industry in India. In order to achieve this purpose, each key research objectives, as identified earlier pertain to determining the key variables for an effective recruitment and selection system. Based on those techniques, key employee gauges like academic record, work experience etc. are identified as Input Variables. The attributes that companies consider essential for IT Software professionals were also identified and these also formed part of the input variables. The companies performance depends on its employee base without question and these performance indicators are identified as Output Variables. Finally, using various statistical methods, an attempt is made to determine the relationship between key company performance metrics to selection techniques, thereby obtaining key variables in an effective recruitment and selection. The methodology used involves testing those hypotheses using a multivariate analysis scheme. A Conceptual Model for Research is as given below. CONTROLLED FACTORS (X 1, X 2,..,.X n ) INCOMING WORKFORCE EFFECTIVE RECRUITMENT & SELECTION SYSTEM OUTPUT RESPONSE (Y 1, Y 2,..Y n ) UNCONTROLLED FACTORS (Z 1, Z 2.Z n ) 6

8 Identifying Key Variables Broadly the recruitment and selection system could be analyzed in terms of their criteria for selection, methodology of testing to include number of tests conducted, the preference given to academic qualification / experience and other back ground information of potential candidates and lastly the effect of other factors including size and turnover of the Company as it affected their system of recruitment and selection. The Pilot Questionnaire therefore elicited response to some of such queries, such as job specification, the criterion taken as a screening factor for inclusion of the IT Software Companies for the sample taken for research. The next response was attributes considered by IT Software Companies, as essential for software professionals. Based on the response from IT Companies, a list of 16 attributes (X1-X16) was compiled. Attributes Input Variables Name QUES 5 INTELLIGENCE X1 PROBLEM SOLVER X2 CREATIVE X3 FLEXIBLE X4 QUICK TO LEARN X5 PERSEVERING X6 PASSION FOR TECHNOLOGY X7 TEAM SPIRIT X8 PRIORITISES X9 RESULT ORIENTED X10 DESIGN MAKER X11 MOTIVATED X12 DYNAMIC X13 LONG TERM PLANNER X14 ANALYTICAL SKILLS X15 MAINTAIN FOCUS X16 7

9 Though several other attributes were also listed, these attributes were listed by most of the companies and hence taken as main attributes for this study. The next response analysed and taken as input variable has been the number tests IT Software Companies conducted comprising Interviewing, Group Testing, Psychological Testing, Intelligence Testing, Technical Testing etc. QUES 3 INTERVIEW X17 GROUP TEST X18 PSYCHOLOGICAL TEST X19 INTELLIGENCE TEST X20 TECHNICAL TEST X21 OTHERS X22 The preference given to academic qualification / experience and other back ground information of potential candidates were analyzed as the next set of input variables. QUES 4 ACADEMIC RECORD X23 OVERALL WORK EXPERIENCE X24 EXPERIENCE IN THE FIELD X25 SOCIO-ECONOMIC BACKGROUND X26 OTHERS X27 The effect of other factors including size and turnover of the Company as it affected their system of recruitment and selection were taken as per variables planned below. Uncontrolled Factor Size of company Z is <= 1000 employees, 2, , and 4 is > employees Turnover </>Rs1500 crores Z less than and 2 is more than Rs1500 crores 8

10 The key outputs variables (Y1-Y4) for the study, to assess the effectiveness of the model were percentage growth of sales; net profit margin, revenue/profit growth and finally and the average net profit per employee, as given below. Growth in Sales (%age) Net Profit Margin Revenue/Profit Growth Average Net Profit/Employee Y1 Y2 Y3 Y4 Assumptions for the Study From the response during the interactions and interviews as also to the Pilot questionnaire served to the IT Companies, it emerged that there is a varying nature of recruitment and selection system that is unique to each Company. The assumptions therefore taken at the time of the research are that the assessment and answers given by the companies will hold for the next five years, the subjects fully understand the questions and responded honesty; the response given by IT Companies is based on their company position at the time the questionnaire has been served. It has been accepted that changing environment can affect economic and output state. Research Procedure The research being undertaken is to identify a system of employment selection that could lead to greater effectiveness of the IT Software Industry and provide a greater cutting edge to meet future challenges. The research design and the procedure undertaken for conducting the study comprised instrument development and an initial pilot survey followed by a compilation of the feedback and statistically testing its validity and reliability. The data was compiled and a main questionnaire was evolved. The 9

11 questionnaire for pilot testing comprised a questionnaire design as non- disguised and structured with approximately questions. Due to the variety of respondents in terms of their turnover, number of employees and diversity in services provided, the collection of data was unstructured. The professionals who are interviewed or to whom questionnaires were administered comprised Project Managers, HR Managers, Industry experts and software professionals who gave grass root inputs. From the size of the population available, the objective is to have a sample, which represented at least a population sample with about 95 percent confidence level. The response provided by the IT Software Companies has been positive but their perception of corporate secrecy and willingness to part with confidential financial data has been far from positive. Quota sampling is used for the study of the population. The pilot survey was sent to about 204 IT Companies identified as part of quota sampling. The research variables identified were specific qualities and weight-ages, if any considered for these in effectiveness of the recruitment and selection system. The number of tests companies employ at the time of recruitment and selection, comprising combination of interviews, psychological tests, group tests, technical tests and intelligence tests etc. The numbers of tests conducted by companies were collated and response was thereafter categorized into three groups. The first group A comprised companies that undertook 4/5 prescribed tests out of Interviews, Group Tests, Psychological Tests, Intelligence Tests, Technical Tests and others. The second group B comprised companies that took 3/5 tests and the last group C comprised companies that took less than two of such tests. IT Companies were also to respond to the minimum educational qualities acceptable in terms of 10+2 level, engineering graduate and non 10

12 engineering graduate, preference of the IT Software Companies to the nature of entry preferred in terms of IT engineering graduate, other engineering graduate, graduate from non engineering stream, diploma holders and others. The other variables were the forecast to meet challenges of the IT Industry in the next 5 years, the evolution of specific criteria to meet the effectiveness in recruitment and selection of IT Software Companies and the viability of undertaking psychological testing of the software professionals. A response was also elicited to identify the possible stage at which the centralized system of testing could be introduced. Hypotheses Formulation Based on the research objectives, the instrument for research (main questionnaire) helped formulate 12 hypotheses to test relationship between the variables indentified earlier. The level of significance for rejecting null hypothesis was kept at.05. Descriptive statistics were computed for all variables before testing the null hypothesis for means, standard variables, frequencies, percentages and to correlated response values between variables. The key hypotheses relating to the questions are given below. While it is widely perceived that greater number of tests would assist in sieving better candidates in the selection and recruitment, the research tests for hypotheses H 1 - H 4 posit that there is no significant difference in the growth in sales, net margin of profit, revenue / profit growth or average net profit per employees of the IT Companies. H 1. Increased combination of interviews, psychological tests, intelligence tests, technical tests and others taken at the time of recruitment and selection for the IT Software Companies in India does not improve the relationship of growth in sales of IT Software Companies. 11

13 H 2. Increased combination of interviews, psychological tests, intelligence tests, technical tests and others taken at the time of recruitment and selection for the IT Software Companies in India does not improve the relationship of net profit margin of IT Software Companies. H 3. Increased combination of interviews, psychological tests, intelligence tests, technical tests and others taken at the time of recruitment and selection for the IT Software Companies in India does not improve the relationship of revenue/profit growth of IT Software Companies. H 4. Increased combination of interviews, psychological tests, intelligence tests, technical tests and others taken at the time of recruitment and selection for the IT Software Companies in India does not improve the relationship of average net profit per employee, of IT Software Companies. Considerable thought is given by IT Companies to the academic record, socio economic conditions, overall work experience and experience in the IT field while undertaking recruitment and selection in respective companies but only few IT Software Companies, across the board, gave any weight-age to the socio economic back ground of candidates, whereas in assessing the Overall Work Experience, there was much more agreement. Hypotheses H 5 -H 8 addresses the relative importance of these variables. H 5. The academic record has no domination while overall work experience, experience in field and socio-economic conditions, have more effect on the recruitment and selection for the IT Software Companies in India that affects growth in sales of IT Software Companies. 12

14 H 6. The academic record has no domination while overall work experience, experience in field and socio-economic conditions, have more effect on the recruitment and selection for the IT Software Companies in India that affects the net profit margin of IT Software Companies. H 7. The academic record has no domination while overall work experience, experience in field and socio-economic conditions, have more effect on the recruitment and selection for the IT Software Companies in India that affects the revenue/profit growth of IT Software Companies. H 8. The academic record has no domination while overall work experience, experience in field and socio-economic conditions, have more effect on the recruitment and selection for the IT Software Companies in India that affects the average net profit per employee, of IT Software Companies. Based on the feedback from companies, a generally common list attributes was evolved that would constitute the variables. Hypotheses H 9 -H 12 tests the relative contributions of those parameters. H 9. The combination of various factors considered in the study at the time of recruitment and selection for the IT Software Companies in India affects growth in sales of IT Software Companies of all the factors considered for evaluation of the output variables of most factors did not affect the growth in sales of IT Software Companies. H 10. The combination of various factors considered in the study at the time of recruitment and selection for the IT Software Companies in India affects net profit margin of IT Software Companies of all the factors considered for evaluation of output variables, most factors did not affect the net profit margin of IT Software Companies. 13

15 H 11. The combination of various factors considered in the study at the time of recruitment and selection for the IT Software Companies in India affects revenue/profit growth of IT Software Companies of all the factors considered for evaluation of the output variables, most factors did not affect the revenue / profit growth. H 12. The combination of various factors considered in the study at the time of recruitment and selection for the IT Software Companies in India affects average net profit per employee of IT Software Companies of all the factors considered for evaluation of output variables, most factors did not affect the average net profit per employee of IT Software Companies. Research Results and Discussion For quantitative data sets, the inputs were normalized on a scale of 1-5 to make them quantitative, with 1 being the least importance and 5 being the most importance. For qualitative data sets, the inputs were marked as Y/N (Yes/No) and treated as nominal variables. For working out the effectiveness of the recruitment and selection system, the output data had to be evaluated against the input variables. In order to analyze the output variables, data pertaining to the growth in sales, net margin of profit were gathered from the data provided by companies and in most cases obtained from the sites showing the financial results that were public. Thereafter, the revenue/profit growth was worked out to finally arrive at the average net profit per employee. 14

16 Results The results of hypothesis testing for H-1 to H-4 are as given below: Null Hypothesis Test Sig. Decision 1 The distribution of Y1 is the same across categories of Group Q3 Independent Samples Kruskal-Wallis Test The distribution of Y2 is the same across categories of Group Q3 Independent Samples Kruskal-Wallis Test The distribution of Y3 is the same across categories of Group Q3 Independent Samples Kruskal-Wallis Test The distribution of Y4 is the same across categories of Group Q3 Independent Samples Kruskal-Wallis Test The next vital consideration was the preference to the socio economic conditions, academic record, overall work experience and experience in the IT field while undertaking recruitment and selection in respective Companies. The IT Companies across the board did not give any weightage to socio-economic background of candidates so that was dropped from the testing. To test the null hypotheses H 5 to H 8, the response of the Companies to the question of preference to the academic record, overall work experience and experience in the IT field was classified into two categories, Group D -Companies which value academic record but do not value overall work experience and experience in the field and Group E Companies which value overall work experience and experience in the field but do not value academic record as much. 15

17 Based on this classification, the results of the test are below:- Null Hypothesis Test Sig. Decision 1 The distribution of Y1 is the same across categories of Group Independent Samples Mann Failed to accept Q4 Whitney U Test The distribution of Y2 is the Independent 2 same across categories of Group Samples Mann Q4 Whitney U Test The distribution of Y3 is the Independent 3 same across categories of Group Samples Mann Q4 Whitney U Test The distribution of Y4 is the Independent 4 same across categories of Group Samples Mann Q4 Whitney U Test To test the hypotheses H 9 to H 12, the approach used here is different. A linear effect model for all inputs was constructed and was fitted using least squares method for the output responses. These were then fitted using least square method for the out put variables growth in sales, net margin of profit, revenue / profit growth or average net profit per employees of the IT Companies. The results of any such model being 16

18 dependent on the revenue, due consideration had to be given to the uncontrolled variables and so out of turnover of IT Companies Z-1 and Z-2, the latter Z-2 was blocked. For the overall model, the highest correlation is shown for growth in sales with a significance of which indicates >97% confidence in the model. All other factors show less correlation. Within the model, the attributes (X1-X16) where F is shown ~ > 3 are considered significant. Thus, for the output variables Y1-Y4, the results for significant effects (with F-factors below) are: Hypothesis 9 Y1: Quick to Learn (X-5), Team Spirit (X-8), Long Term Planner (X-14) and Maintains Focus (X-16). Hypothesis 10 Y2: Maintains Focus (X-16). Hypothesis 11 Y3: Analytical Skills (X-15) and Passion for Technology(X-7). Hypothesis 12 Y4: Dynamic (X-13). Thus, we can say that only for H 9 and H 11 the alternate hypothesis holds true. This is also corroborated by the result where for example the growth in sales is correlated to hiring with real world experience rather than academic tests. For H 10 and H 12, the null hypothesis holds true. Hypothesized Relationship Results H 1. Increased combination of interviews, psychological tests and intelligence tests taken at the time of recruitment and selection for the IT Software Companies in India does not improve the relationship of growth in sales of IT Software Companies. 17

19 H 2. Increased combination of interviews, psychological tests, intelligence tests, technical tests and others taken at the time of recruitment and selection for the IT Software Companies in India does not improve the relationship of net profit margin of IT Software Companies. H 3. Increased combination of interviews, psychological tests, intelligence tests, technical tests and others taken at the time of recruitment and selection for the IT Software Companies in India does not improve the relationship of revenue/profit growth of IT Software Companies. H 4. Increased combination of interviews, psychological tests, intelligence tests, technical tests and others taken at the time of recruitment and selection for the IT Software Companies in India does not improve the relationship of average net profit per employee, of IT Software Companies. H 5. The academic record has no domination while overall work experience, experience in field and socio-economic conditions, Failed to accept have less effect on the recruitment and selection for the IT Software Companies in India that affects growth in sales of IT Software Companies. H 6. The academic record, socio-economic conditions, overall work experience and experience in field have no domination during the recruitment and selection for the IT Software Companies in India that affects the net profit margin of IT Software Companies. 18

20 H 7. The academic record, socio-economic conditions, overall work experience and experience in field have no domination during the recruitment and selection for the IT Software Companies in India that affects the revenue/profit growth of IT Software Companies. H 8. The academic record, socio-economic conditions, overall work experience and experience in field have no domination during the recruitment and selection for the IT Software Companies in India that affects the average net profit per employee, of IT Software Companies. H 9. The combination of various factors considered in the study at the time of recruitment and selection for the IT Software Companies in Failed to accept India affects growth in sales of IT Software Companies of all the factors considered for evaluation of the output variables, most factors did not affect the growth in sales of IT Software Companies. H 10. The combination of various factors considered in the study at the time of recruitment and selection for the IT Software Companies in India affects net profit margin of IT Software Companies of all the factors considered for evaluation of output variables, most factors did not affect the net profit margin of IT Software Companies. H 11. The combination of various factors considered in the study at the time of recruitment and selection for the IT Software Companies in India affects Failed to accept revenue/profit growth of IT Software Companies of all the factors considered for evaluation of the output variables, most factors did not affect the revenue/profit growth of IT Software Companies. 19

21 H 12. The combination of various factors considered in the study at the time of recruitment and selection for the IT Software Companies in India affects average net profit per employee of IT Software Companies of all the factors considered for evaluation of output variables, most factors did not affect the average net profit per employee of IT Software Companies. Conclusions The results of the present research lead to the conclusion that there are attributes that most IT software companies consider as essential for the potential employees involved in software development. The research brings out that significant increase in number of tests; during the selection process does not of yield a major advantage for a better recruitment and selection system for the IT Software Companies. Also, while socio-economic conditions do not have any major impact on the selection system, some impact is experienced in the growth rate of companies while considering academic record. Considering the attributes for aptitude identified by the IT software companies, the research has identified these attributes along with certain other input factors, which could be utilized for evolving a model that can give better growth in sales, margin of profit, revenue / profit growth and finally average net profit per employee. Thus by utilizing the model evolved by employing input, controlled and output variables used in this research, the IT software companies have a feasible model for an effective recruitment and selection system for the IT Software Industry in India. 20

22 Implications A few of the implications of the study are that a systematic study of recruitment models has been lacking and this study will hopefully prove to be an example of quantitative analysis for recruitment. As is clear from testing hypotheses H 1 -H 4, increasing the length of the selection process does not necessary always result in obtaining a pool of candidates that affect the company s bottom line. For key parameters like growth in sales, relying on antiquated academic screening criterions also does not help. It is thus imperative that each selection team be very clear on their organizational objective and thereby can tailor the selection criterion while recruitment for maximum efficiency. Hypotheses H 5 -H 8 reflects that most aptly. One can envision a multiple parameter correlation study being conducted similar to Hypotheses H 9 -H 12 testing where once a model has been built that correlates the input variable in form of attributes to the output variables. With this study, the company can do targeted selections based on their needs. For example, growth in revenue is most linked to candidates Passion for Technology. Once the company is in a growth phase, it can hire candidates from schools which have a strong research and development wing that attracts people with a passion for technology. The conclusion arrived to from the analysis presented above can change significantly if either the sample size for the study or the variable set used is different. A very good example to showcase this effect is the blocking variable. In our study, the turnover for a company is used to segregate the data/structure differences between the two data sets and is used as a blocking variable. If not used, the data from small turnover companies will corrupt the analysis for the large turnover companies. A selection strategy 21

23 would combine elements of various hypotheses depending upon the output variable that would need to be maximized Suggestions for Future Studies Based on the results and the limitations of this study, further research are proposed for extending input variable correlation between management s vision of how IT Software professionals are managed and how IT Software professionals perceive management s vision. This study also did not investigate the differences between the measured variables with respect to the respondents demographic characteristics and sex ratios (male vs female) of employees. IT Software Companies who have different demographic characteristics and sex ratios of employees may have different results. Lastly, longitudinal studies are needed in order to validate the predictive dimension of the model as has been worked out. 22