In IT industry, the human element plays a major part in the overall success of the industry. "There must be effective management of human resources - there must be an effective personnel function" (Ulrich, Lake, 1990). HRM systems can be the source of organizational capabilities that allow firms to learn and capitalize on new opportunities especially in IT industry which operates in rapidly changing environment. While innovations in high technology often receive the greatest publicity, advances have been made in many fields and at many levels of Information Technology.
Some theorists argue that HRM is used to exploit workers in order to achieve strategic goals. It is possible to agree and disagree with this view because much depends upon the conception employed by the researchers. Speaking about IT industry it is possible to say that HRM can be identified as an element or support concept of the industry. In many organizations, including IT sector, human resources is very much part of the productive process and will be a task function. For example, in the IT industry many members of the workforce are seen as being involved in achieving the objectives of the organization creating a new product or service. In this case, people are part of the finished product for which the customer is paying. Customer satisfaction is likely to be affected as much by the courtesy, helpfulness and personal qualities of the staff as by the standard of services provided. This places particular importance on the managerial function which manipulates workforce to achieve organizational tasks (Tyson, 1997).
Training, as investment in people, is also a form of manipulation. Training requires the co-operation of managers, adequate finance and resources, time, skilled staff and a supporting appraisal system: from top management and throughout all levels of the organization. Most programs of IT development are designed in accordance with the culture and specific requirements of the particular segment of IT industry or department, and the demands of particular managerial jobs. There should be a clear development policy together with regular reviews of individual performance and a program of career progression. All the forms mentioned above explain manipulation of HR through HRM systems as the inevitable part of management. The overall purpose of HRM can be seen as manipulation as well as it aims to ensure that the organization is able to achieve success through people. "HRM systems can be the source of organizational capabilities that allow firms to learn and capitalize on new opportunities" (Campbell, 1997). On the other hand, it is possible to say that training of IT personnel for its own sake achieves little. Training must be real and rewarding.
The rationale for strategic HRM within IT industry is also built on the idea of manipulation which means that people and organizations engage in basically consistent, value-maximizing calculations or adaptations within certain constraints and competitive advantage. The rational model works as follows: an employee has goals or objectives and has a payoff, utility, or preference function that permits that person to rank all possible alternative actions by the action's contribution to the desired goals. The IT organization is presented with and understands alternative courses of action. Each