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International Journal of Mechanical and Production 
Engineering Research and Development (UMPERD) 

ISSN (P): 2249-6890; ISSN (E): 2249-8001 
Vol. 7, Issue 6, Dec 2017,171-178 
© TJPRC Pvt. Ltd 

RECENT TRENDS IN INDUSTRY IN ADOPTING CROWDSOURCING AND 
PROBUEM SOUVING FOR EMPUOYEES PRODUCTIVITY AND EFFICIENCY 
WITH SPECIAU REFERENCE TO IT INDUSTRY 

RETHY B. MENON 

Assistant Professor, Department of Management and Commerce, Amrita University, Mysore, Karnataka, India 

ABSTRACT 

The main challenge in every industry is to find techniques for increasing productivity and emnployee 
efficiency. The industry faces challenges to solve the job related problems of its workers at every level so that the 
employees will be efficient and well recognized in the industry where they serves. The industry always faces situations 
where its employees alone cannot solve the issues and hardly struggle in search of competent hands. The industry will 
be forced to create structure and assemble new information for tackling these issues. Crowd Sourcing is a technology 
in vented online platform which gives ample opportunities for the employees to discuss their problems and seek different 
alternatives and which helps to draw out an effective solution. The main aim of this study is to find out how the industry 
uses this new technology based method which is known as crowd sourcing in solving the problems of the employees 
working in IT sector and to find out the correlation between crowd sourcing and problem solving ability. A survey of 
100 employees from urban and semi urban areas of IT companies were selected through simple and om sampling 
technique. The tools used for data collection included a liker type Questionnaire, to assess the perception level of crowd 
sourcing and Problem Solving Ability Scale. Both the tools used for data collection was standardized and validity and 
reliability was also ensured. The statistical techniques used for the study included descriptive analysis, t test and 
correlation. Findings of the study proved that there exists a positive relationship between Crowd sourcing and Problem 
Solving Ability of employees working in IT sector. And the study suggests that crowd sourcing is an effective method for 
solving the problems of employees in the IT industry. 

KEYWORDS: Industry Faces Challenges, Working in IT Sector.& Ability of Employees 



TRANS 

STELLAR 

•Journal Publications • Research Consultancy 


Received: Sep 18, 2017; Accepted: Oct 03, 2017; Published: Nov 07, 2017; Paper Id.: IJMPERDDEC201718 

INTRODUCTION 

Every organization works for its ultimate goal of attaining profit and to enjoying a good name in the 
society. Organizational success depends upon how the organization manages the information and process for 
attaining the target. For that the organization should have its own strategies and technologies for adequate 
knowledge management. Due to the drastic changes, which has happened in our organizational working climate, 
career management intervention has to be given due importance, for the performance of the workers. Human 
resource is considered, as the most important asset of an organization, but it is a true fact that no human being is 
complete. Solving of problems happens through sharing of experiences and knowledge among the individuals. 
However, individual career development goes beyond the assessment of strengths, weaknesses and training to 
improve job performance (Haase, 2007). Studies prove that, problems can be solved fast in groups than 
individually working on it. Social Darwinism gives a framework to study the evolution this capacity, not just in 
terms of neurophysiology, but also in relation to the cognitive activities behind social problem solving. Thus, by 


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Original Article 








172 


Rethy B. Menon 


making use of the wisdom of crowds, to solve a problem and thereby forming a reflective performance picture on the 
issues leads to the new strategy of issue tackling, this is known as crowd sourcing. When an opportunity is given for a 
substantial group of open minded people, it is sure that, they will come out with tremendous creative results. The process 
of obtaining information by enlisting the services of a large number of people, either paid or unpaid, typically through the 
Internet is known as crowd sourcing. The term, "crowd sourcing" was coined in Jeff Howe and Mark Robinson (2006), 
which describes how businesses were using the Internet to outsource the work to a large and heterogenous undefined 
general public, usually in the form of an open call. The emergence and popularity of the crowd sourcing phenomenon can 
be largely attributed to the rise of the Web 2.0 (Fuller, Bilgram, Koch & Rapp, 2013) Crowd sourcing, is based on the 
concept of collective intelligence: Selzer & Mahmoudi (2006) told that, under the right circumstances, groups are 
remarkably intelligent, and are often smarter than the smartest people in them. Crowd sourcing gives access to ideas, 
innovations and information (Aitamurto et ah, 2011; Estelles-Arolas & Gonzalez-Ladron-de-Guevara, 2012; Sloane, 2011). 
So, crowd sourcing is worthwhile for the success of any type of organization, without any distinction between profits or 
non-profit. 

Brabham (2008) said, crowd sourcing be considered as a means, for companies to exploit consumers and get 
access to a cheap workforce, by solving the major problems through collective decision making. 

REVIEW OF RELATED LITERATURE 

Yuen and Leung (2011) conducted a study on ‘crowd sourcing, an area to explore’. The study discussed how the 
crowd sourcing is distributed as a problem solving and business production model. The study is based on the method are 
segregated according to the application, algorithms, performances and datasets. The study proved that that crowd sourcing 
established to reduce the production cost and to lessen the work load of the employees. Crowd sourcing application helped 
in Information sharing system. Game, Creative system and based on performance helped in cheating detection, user 
participation and Quality management. 

Cupido and Ophoff (2009), made an attempt to study on ‘A model of fundamental components, for an e- 
government crowd sourcing platform’. The main aim of the study was, to find out how crowd sourcing initiatives is able to 
motivate citizen participation in e-government. The study contributed in formulating an e-government crowd sourcing 
solution, based on self determination theory enhancing citizen motivation and the influence of incentives and rewards. 
The model suggested solutions, for clarity and organisation of various tasks and feedback system. The model was applied 
on 295 citizens and indicated that crowd sourcing concepts necessarily translated well in public sector initiatives. 

Xu, Soriano and Garcia (2015), studied on ‘Crowd sourcing, innovation and firm performance’. The purpose of 
the study was, to identify whether firms using crowd funding tools performs significantly well. The investigators 
developed a model that related crowd funding, innovative competencies to create value in the firm. They made use of 
Chinese population of biotechnology and telecommunications industries. Mail questionnaire was sent to 393 firms. The 
study found that those firms which used crowd sourcing systems captured knowledge of the customers and transformed it 
in innovation and ultimately resulted in the organizational performance. 

Thuan (2016), made a study on ‘Establishing crowd sourcing as an organisational business process: a design 
science approach.’ The study adopted the design science paradigm and follows four research stages. The study identified a 
model of business process crowd sourcing (BPC). The model had seven processes, with decision to crowd source, process 


Impact Factor (JCC): 6.8765 


NAAS Rating: 3.11 



Recent Trends in Industry in Adopting Crowd Sourcing and Problem Solving for Employees 173 

Productivity and Efficiency with Special Reference to IT Industry 

design, and technical configuration. The results suggested that the model was useful for structuring the crowd sourcing 
processes and ultimately resulted in the qualitative and quantitative improvement and helped in decision making 
performance and the usefulness of the model, for structuring crowd sourcing processes. 

Definition of Variables 

“Crowd sourcing is a participative online activity, where solution to a problem is seeked from the general public 
by an individual, profitable or non profitable organization through an open call irrespective of their knowledge level.” 

“Problem Solving Ability is the capacity of an individual to make use of logic as well as the imagination and 
creativity in giving an intelligent solution for a problem.” 

OBJECTIVES 

• To find the level of perception towards crowd sourcing among employees of IT industry. 

• To find the level of problem solving ability among employees of IT industry. 

• To find out the significant difference of perception towards crowd sourcing and problem solving ability among 
employees of IT industry based on gender and locality of the industry. 

• To find the correlation between perception towards crowd sourcing and problem solving ability among employees 
of IT industry. 

Hypothesis 

• The level of perception towards crowd sourcing among employees of IT industry is high. 

• The level of problem solving ability among employees of IT industry are high. 

• There exists significant difference on perception towards crowd sourcing and problem solving ability among 
employees of IT industry based on gender and locality of the industry. 

• There is a positive relationship between perception towards crowd sourcing and problem solving ability among 
employees of IT industry 

METHODOLOGY 
Variables of the Study 
Independent variable 

The independent variable of the study is Perception on Crowd sourcing of employees working in IT sector. 

Dependent Variable 

The dependent variable of the study is Problem Solving Ability of Employees working in IT sector 

Sample 

The sample consisted of 100 employees from IT sector. A survey study was conducted all across the Karnataka 
State. Simple random sampling technique was used to collect data. 


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174 


Rethy B. Menon 


Tools Used 

The tools used for the study includes 

• Questionnaire on Perception towards Crowd sourcing, (Rethy 2017). Likert type questionnaire was administered 
on the sample. The tool consisted of 25 statements with strongly agree (5). Agree (4), Undecided (2), Disagree 
(2), Strongly Disagree (1). Content validity was ensured. Split half reliability was administered and the value 
came to 0.85 which shows that the tool is highly reliable. 

• Problem Solving Ability Scale (Rethy, 2017) was used, for analyzing the problem solving ability of the 
employees. It consisted of 20 statements. Here also, content validity was ensured and split half reliability factor 
came to 0.80, which shows that, the tool is valid and reliable one. 

Analysis and Interpretation 

PERCEIVED LEVEL OF CROWD SOURCING OF EMPLOYEES WORKING IN ITS SECTOR 

Based on the mean score, the level of perception on crowd sourcing are being rated, by using a grading table, 
where the score ranges from (1- 42 ) is rated as low level, (43 - 84 ) as moderate level and (85-125) as high level. 


Table 1: Crowd Sourcing- Descriptive Statistics 


Descriptive Statistics 

Crowd Sourcing 

Mean 

117.83 

Median 

119.00 

Mode 

120 

Standard Deviation 

5.119 

Skewness 

-.722 

Kurtosis 

169 


Table 1 show that, the mean value is 117.83 with a standard deviation of 5.119, which reveals that, there exists a 
high level of perception of crowd sourcing, for employees working in IT sector. 

Based on the mean score, the level of Problem Solving Ability of Employees are being rated, by a using a grading 
table, where the score ranges from (1-40) is rated as low level, (41 - 81) as moderate level and (82-120) as high level. 

PERCEIVED LEVEL OF PROBLEM SOLVING ABILITY OF EMPLOYEES WORKING IN ITS SECTOR 


Table 2: Problem Solving Ability- Descriptive Statistics 


Descriptive Statistics 

Problem Solving Ability 

Mean 

115.34 

Median 

115.00 

Mode 

114 

Standard Deviation 

3.333 

Skewness 

-408 

Kurtosis 

-418 


Table 2 shows that, the mean value is 115.34, with a standard deviation of 3.333, which reveals that, exists a high 
level of perception of crowd sourcing for employees working in IT sector. 


Impact Factor (JCC): 6.8765 


NAAS Rating: 3.11 





Recent Trends in Industry in Adopting Crowd Sourcing and Problem Solving for Employees 175 

Productivity and Efficiency with Special Reference to IT Industry 

SIGNIFICANT DIFFERENCE OF PERCEPTION TOWARDS CROWD SOURCING AND PROBLEM 
SOLVING ABILITY AMONG EMPLOYEES OF IT INDUSTRY BASED ON GENDER AND LOCALITY OF 
THE INDUSTRY 


Table 3: Tests of Normality 



Kolmogorov-Smirnov 3 

Shapiro-Wilk 

Statistic 

df 

Sig. 

Statistic 

df 

Sig. 

Crowd sourcing 

150 

100 

000 

935 

100 

000 


Test of Normality was administered and it showed that, the continuous variable Crowd Sourcing is having a 
normal distribution. 


Table 4: Comparison of the Perception on Crowd Sourcing of the Employees of 

IT Sector Based on Gender 


Gender 

Frequency 

Mean 

Standard Deviation 

t 

p-value 

Male 

52 

120.25 

4.237 

5.609 

0.000 

Female 

48 

115.21 

4.713 


The data relating to the Gender wise analysis of perception on crowd sourcing is presented in Table 4. It shows 
that the male employees (Mean Score= 120.25) perception on crowd sourcing is more than their female counterparts. 

As the t value is 5.609 and p-value 0.000, it can be concluded that there exists significant difference in the 
perceptions of Male and Female employees regarding the perception towards crowd sourcing in IT sector. 


Table 5: Comparison of the Perception on Crowd Sourcing of the Employees of 

IT Sector Based on Locality 


Locality 

Frequency 

Mean 

Standard Deviation 

t 

p-value 

Urban 

50 

120.78 

2.873 

7.034 

0.000 

Semi Urban 

50 

114.88 

5.189 


Here also in the Table 5 the p value is 0.000 which shows that significant difference exists in the perception of 
employees towards Crowd sourcing based on locality. An employee working in urban areas is having more perception 
towards Crowd sourcing when compared with the employees in semi urban areas of IT sector. 


Table 6: Tests of Normality 



K o 1 m ogo ro v - S m i r n o v a 

Shapiro-Wil 

k 

Statistic 

df 

Sig. 

Statistic 

df 

Sig. 

Problem solving 

095 

100 

027 

962 

100 

006 


Table 6 shows that, the distribution of Problem Solving Ability scores is also having normality. 

Table 7: Comparison of the Problem Solving Ability of the Employees of 
IT Sector Based on Gender 


Locality 

Frequency 

Mean 

Standard Deviation 

t 

p-value 

Male 

52 

115.98 

3.340 

5.377 

0.000 

Female 

48 

112.56 

3.017 


Table 7 clearly indicates that the Problem Solving Ability of Female employees in IT sector significantly differs 
from the male employees. The mean value shows that, the male employees in the IT sector are having more Problem 
Solving Ability, than the female lot. 


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176 


Rethy B. Menon 


Table 8: Comparison of the Problem Solving Ability of the Employees of 
IT Sector Based on Locality 


Locality 

Frequency 

Mean 

Standard Deviation 

t 

p-value 

Urban 

50 

116.48 

2.690 

7.351 

0.000 

Semi Urban 

50 

112.20 

3.117 


Table 8 states that the p value is 0.000 which reveals that employees of Urban based IT sector differ from the semi 
urban area in Problem Solving Ability. Employees of Urban IT companies overbeat the semi urban ones. 

CORRELATION BETWEEN PERCEPTION TOWARDS CROWD SOURCING AND PROBLEM SOLVING 
ABILITY AMONG EMPLOYEES OF IT INDUSTRY 


Table 9: Correlations 



Crowd 

sourcing 

Problem solving 

crowd sourcing 

Pearson Correlation 

1 

785^ 

Sig. (2-tailed) 


000 

N 

100 

100 

problem solving 

Pearson Correlation 

785*' 

1 

Sig. (2-tailed) 

000 


N 

100 

100 


**. Correlation is significant at the 0.01 level (2-tailed) 

Table 9 shows that, there exists positive correlation between the Perceptions on Crowd sourcing and Problem 
Solving Ability of employees, working in IT sector. 

Tenability of the hypothesis 

The tenability of hypotheses based on the result of statistical analysis is discussed above. 

• The first and second hypothesis states that there is a high level of Perception towards Crowd sourcing and 
Problem Solving Ability among employees of IT sector. Since, the grading of Crowd sourcing and Problem 
Solving Ability shows high level value, these two hypotheses are fully substantiated. 

• Next hypothesis mentioned that, there existed significant difference on perception, towards crowd sourcing and 
problem solving ability, among employees of IT industry, based on gender and locality of the industry. Results 
showed that, there exists considerable variations based on gender and locality, for both the variables and hence, 
this hypothesis is also accepted. 

• The last hypothesis was that, there exists a positive correlation between perception towards crowd sourcing and 
problem solving ability, among employees of IT industry and hence, this also is accepted. 

CONCLUSIONS 

Crowd sourcing is an information gathering platform, which solicits the contributions of knowledge from a large 
group of people, ranging from experts to common people. Crowd sourcing is a phenomenon, which has to be encouraged 
not only in IT sector, but also in all profitable and non profitable institutions. If, it is properly executed, it helps to reduce 
the cost, overhead, minimize management work load, optimizes creativity, increases problem solving abilities of 
employees and management, helps in decision making and ultimately results the organizations, to attain its target at a faster 
pace. 


Impact Factor (JCC): 6.8765 


NAAS Rating: 3.11 




Recent Trends in Industry in Adopting Crowd Sourcing and Problem Solving for Employees 177 

Productivity and Efficiency with Special Reference to IT Industry 

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