A PROJECT REPORT On Study of HR Practices & Process of Performance Appraisal With special reference to ADITYA BIRLA GROUP GRASIM I DUSTRIES R. M. C Division Head Office – MUMBAI Submitted To TILAK MAHARASHTRA U IVERSITY, PU E Submitted by SATISH PRAKASH GOYAL MBA- H. R (2007-2009) I STITUTE OF BUSI ESS STUDIES & RESEARCH IBSAR Navi Mumbai ([email protected] co. in) Page 1 Table of Contents CHAPTER O. 1 2 3 4 5 6 TITLES
Acknowledgement Executive Summary Company Profile Organizational Chart Introduction About the project Recruitment Selection Performance Appraisal Training & Development Talent Management Job Analysis Organisation Structure Human Resource Information System Company Philosophy Exit Interview PAGE O. 3 8 9 16 18 20 22 25 28 34 40 42 47 51 56 58 7 8 9 10 11 12 Learnings Observations & Findings Recommendations Nomenclatures and Abbreviations Limitations & Bibliography Annexure 65 66 67 68 69 71 IBSAR Navi Mumbai ([email protected] co. in) Page 2 Acknowledgement
It is not possible to prepare a project report without the assistance & encouragement of other people. This one is certainly no exception. On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards all the personages. Without their active guidance, help, cooperation & encouragement, I would not have made headway in the project. I would like to express my sincere thanks to Major P. K. Das (GM-HR,Grasim Industries) who gave me the opportunity to work with such an esteemed organization. I owe profound sense of regards & gratitude towards Mr.
Sujit Kumar (Manager- HR) who has continuously guided me & supported in all the tasks by giving me valuable insight into issues like the meaning of HR practices, its uses, objectives and tools as well as steps to be considered in developing and studying an organizational structure. I owe debt of gratitude to Ms. Deepika Mehta (Executive-HR) who has given me enough support & cooperation to me by finding time from her hectic schedule. I also thank her for guiding me, clearing the doubts & advising me in the right time to make this project a real learning experience.
I am thankful to the entire employee at Grasim Industries (RMC Div. ) for their cooperation during the internship. Last but not the least, I would thank Dr. M. L. Monga,( Executive Director), Dr. Ginlianlal Buhril, (Director, Navi Mumbai) , Mr. Anurag Shrivastava,(Asst. Dir. ) & all my lecturers for giving me an opportunity to work with such an esteemed organization ,guiding& encouraging me throughout. Thanking You: Satish P. Goyal IBSAR Navi Mumbai ([email protected] co. in) Page 3 CERTIFICATE FROM THE FACULTY GUIDE
This is to certify that the project work entitled “Study of HR Practices & Process of Performance Appraisal ”, worked under Aditya Birla Group ( Grasim Industries ) is a bonafide work carried out by Mr. Satish P. Goyal ,a candidate for the MBA June (2007-2009) Examination of Tilak Maharashtra University, Pune under my guidance and direction. Signature of the Guide. ame : Dr. Ginlianlal Buhril Designation : Director Address Date Place : IBSAR, avi Mumbai. : : IBSAR Navi Mumbai ([email protected] co. in) Page 4 CERTIFICATE FROM THE U IVERSITY
This is to certify that the project work entitled “Study of HR Practices & Process of Performance Appraisal ”, worked under Aditya Birla Group ( Grasim Industries ) is a bonafide work carried out by Mr. Satish P. Goyal , a candidate for the MBA June (2007-2009) Examination of Tilak Maharashtra University, Pune. The project report has been approved as it satisfies the academic requirements in respect of project work prescribed for the Masters of Business Administration Degree. Head : Internal Guide : External Guide: Date Place : : IBSAR Navi Mumbai ([email protected] o. in) Page 5 Executive SummaryThe importance of personnel management is being increasingly realized in industrial and nonindustrial organization both in India and abroad. The realization has come about because of increasing complexity of the task of managers and administrators. In most organizations the problems of getting the competent and relevant people, retaining them, keeping up their motivation and morale, and helping them to both continuously grow and contribute their best to the organizations, are now viewed as the most critical problems.
So with this reference the project titled Study of Study of HR practices & process of Performance Appraisal has been conducted, based on the primary research in Ultratech Cement Limited, RMC Division has been prepared to get a better insight into the management practices adopted by UTCL with reference to HR Policies prepared by the HR department in organization. It emphasizes on the importance of a clear cut organization structure and culture to avoid any confusion in order to achieve maximum result with minimum resources.
The project is aimed to cover maximum knowledge of the HR practices followed in the organization and how the performance is evaluated of employees, what primary factors are considered , how data is maintained and finally the evaluation done. Here the HR practices of the company have been explained to understand how the company follows these practices and the performance appraisal process adopted. The practical knowledge has been gained mainly by observing all the activities taking place in the H. R. department. This is a brief study done to have understanding of the subject H. R. how it is practically implemented, why it is necessary, its implications & the benefits. With reference to the HR Practices brief knowledge has been gained how the Recruitment cycle functions, Selection done, Training Calendar prepared, what does compensation & cost to company means and the steps of performance appraisal. IBSAR Navi Mumbai ([email protected] co. in) Page 6 Company Profile Aditya Birla Group is India’s first truly multinational corporation. The group has an annual turnover of US$ 24 billion and has over 1,00,000 employees belonging to over 25 different nationalities on its rolls.
Aditya Birla Group has its presence in 20 countries – India, Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea. Globally the Aditya Birla Group is: • A metals powerhouse, among the world’s most cost-efficient aluminium and copper producers. Hindalco, from its fold, is a Fortune 500 Company. It is also the largest aluminium rolling company and one of the 3 biggest producers of primary aluminium in Asia. In India: • A premier branded garments player. • The 2nd largest player in viscose filament yarn. The 2nd largest in the Chlor-alkali sector. • Among the top 5 mobile telephony companies. Hindalco: It has established been in 1958, Hindalco deals in Aluminium and Copper and is an industry leader in both. Hindalco is the world’s largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is today the world’s largest custom smelter at a single location. In 2007, Hindalco acquired Novelis and in the process became the world’s largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia, as well as India’s leading copper producer.
IBSAR Navi Mumbai ([email protected] co. in) Page 7 Aditya Birla uvo: Aditya Birla Nuvo is a diversified business conglomerate with interests in viscose filament yarn (VFY), carbon black, branded garments, fertilizers, textiles and insulators. Aditya Birla Nuvo, through its subsidiaries and joint ventures has made forays into life insurance, telecom, business process outsourcing (BPO), IT services, asset management and other financial services. Ultra Tech Cement: The Groups cement business is under both Grasim and UltraTech cement.
Together the two companies under the group account for a substantial share of the cement market in India. UltraTech cement comprises the erstwhile cement business of L which was acquired by the group. Ultra Tech Cement manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana Cement. It is the country’s largest exporter of cement clinker. Its export market includes countries around the Indian Ocean, Africa, Europe and the Middle East. GRASIM I DUSTRIES LIMITED is the flagship company of Aditya Birla Group.
Grasim itself is a multi-product company with cement being the major area of focus. Now a day the cement division of the Grasim industries Limited works under the banner of the Ultratech Cement limited (UTCL). In August 1998, Grasim acquired the well-known Dharani Cements Ltd situated at Reddipalayam, Perambalur District. Soon after the acquisition, Grasim embarked on a most prestigious project of one million top capacity cement plant at the existing locations. READY MIX CO CRETE IBSAR Navi Mumbai ([email protected] co. in) Page 8
Concrete is a hardened building material created by combining a binder i. e. cement (commonly Portland cement), aggregate (generally gravel and sand), water and admixtures. Although people commonly use the word cement as a synonym for concrete, it is only one of several components in modern concrete. As concrete dries, it acquires a stone-like consistency that makes it ideal for constructing roads, bridges, water supply and sewage systems, factories, airports, railroads, waterways, mass transit systems. Concrete is used more than any other man made material on the planet.
It was in 1824, when Joseph Aspdin and Isaac Charles Johnson refined synthetic cement that Portland cement came into existence. However, it was not widely used until World War II, when several large docks and bridges were constructed. Today, different types of concrete are categorized according to their method of installation. Ready or pre-mixed concrete is batched and mixed at a central plant before it is delivered to a site. This type of concrete is sometimes transported in an agitator truck and is also known as transit-mixed concrete.
Shrink-mixed concrete is partially mixed at the central plant and its mixing is then completed en route to the site. The secret of good concrete lies in the degree of quality control and technical parameters of the mix. UltraTech, the Aditya Birla Group Company, which makes good concrete better, maintains a high level of precision in its quality assurance procedures and produces world-class concrete that comes in a package of highly reliable durability, strength and performance. The making of concrete is a science as well as an art.
Science because the right proportions of all the ingredients as per the standard Bureau of Indian Standards (BIS) code assures the desired strength and durability. And an art because it is not just the accurate proportioning which determines the quality of concrete, but the way it is mixed, placed, compacted, cured and protected also play a great role. UltraTech Concrete makes good concrete better because the company takes extra care to make sure it is perfect both ways — proportion wise and handling wise. To ensure quality, each and IBSAR Navi Mumbai ([email protected] co. in) Page 9 very sample of concrete passes through stringent tests in fresh and hardened state to ensure strength, durability and performance. How does UltraTech Concrete make good concrete better? Right from selecting the raw materials to batching and mixing, transportation, placing of concrete till testing of concrete — UltraTech ensures flawless operation in every stage. Clearly, it’s all about putting together the right ingredients for that perfect recipe. Cement Fresh cement, protected from weathering conditions and influence of external environment such as air, moisture etc. , is an important ingredient of concrete.
UltraTech Concrete plant uses fresh cement directly procured from the cement plants through cement bulkers, which in turn pump it directly into the concrete silos thus protecting it from the external environment. Coarse aggregates Coarse aggregates — free from clay, weeds and other organic materials, cubical or rounded with a combination of different sizes and not elongated or flaky — ensure proper strength of the concrete and make it non-porous. These coarse aggregates are a vital ingredient of good concrete. UltraTech Concrete directly sources the aggregates from selected and approved suppliers, tested as per BIS for size, hape, gradation, impact value and crushing value etc. Fine aggregate Sand, the fine aggregate used in concrete must be free from silt, clay, salts and organic materials to prevent shrinkage cracks, which affect the concrete quality and durability. UltraTech Concrete directly purchases sand from selected and approved suppliers tested for moisture content. To maintain the correct water-cement ratio, UltraTech Concrete plants use moisture sensors and an automatic water correction procedure. Water Potable water, free from impurities such as oil, alkalies, acids, salts, sugar, organic materials is IBSAR Navi Mumbai ([email protected] o. in) Page 10 ideal for concrete. UltraTech Concrete uses water tested at frequent intervals and uses water purifiers whenever necessary. Admixture Admixtures used in concrete during mixing ensures its workability (the ease of placing of concrete in moulds) and the setting time is carefully chosen from reputed companies. The workability is measured for every batch through the slump cone and is controlled using a scientific method of dosing. UltraTech Concrete is equipped with computerized batching and mixing plants to strictly monitor the quality of the concrete.
It uses a computerized recipe for the raw mix design (cement : sand : coarse aggregate : water : admixture) and quantities of raw materials are weighed automatically as per the design mix. The water-cement ratio, very important to satisfy the strength and durability criteria of concrete, is pre-designed through a scientific mix design as per the BIS standards and kept constant throughout to maintain the consistency in quality for a particular mix. Mixing is generally done through high efficiency pan mixers (machine mixers / turbo mixer) to ensure uniform and consistent quality concrete.
Transportation The transport of concrete from its place of mixing to the delivery point is very critical, as there is possibility of the concrete drying out and losing its workability and plasticity. UltraTech Concrete transports concrete from its ready mix concrete plants to the site through transit mixers. Further, the concrete is pumped to the actual point of concreting using high efficiency concrete pumps, thus maintaining the homogeneity of the concrete throughout the transit till the final deposition. Placing the concrete is expedited scientifically by specialized delivery trucks.
Qualified and experienced engineers monitor the entire operation. IBSAR Navi Mumbai ([email protected] co. in) Page 11 It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged “The Best Employer in India and among the top 20 in Asia” by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations. Beyond business — the Aditya Birla Group is: Working in 3,700 villages
Reaching out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla Focusing on: health care, education, sustainable livelihood, infrastructure and espousing social cause. . IBSAR Navi Mumbai ([email protected] co. in) Page 12 About Ultratech Cement Ltd Ultratech Cement Ltd is having its own vision, mission and values. Vision of the company: To be a premium global conglomerate with a clear focus on each business. Mission of the company: To deliver superior value to the customers, shareholders, employees and society at large.
Values of the company: People contribute when they relate to an organization and they relate, when they understand the organization. People understand an organization through its values by experiencing the culture that values create and by using the systems and processes that values define. In large organizations, such shared understanding cannot be created through leadership of individuals alone; it requires leadership of principles, of beliefs, of conviction. Integrity, Commitment, Passion, Seamlessness, Speed. These together constitute what they call their “Value”. IBSAR Navi Mumbai ([email protected] o. in) Page 13 Organizational Chart RMC Central IBSAR Navi Mumbai ([email protected] co. in) Page 14 Head RMC Head HR Head Mktg & Sales Head Tech. Service Head Operation Head F Head SCM Head Projects Head Sales Head Mktg Head O Head IT Head Aggregate Head logistics IBSAR Navi Mumbai ([email protected] co. in) [email protected] co. in) Page 15 RMC HR Head HR Recruitment specialist Assistant Poornat a/MIS Org. Development MS/PM S Training School Zonal Coordinators North/East/West/South City HR/IR & Safety IBSAR Navi Mumbai ([email protected] co. in) [email protected] co. in) Page 16 Introduction
HR PRACTICES The success of any business depends as much on appropriate, effective, well-communicated, HR and business practices as it depends on meeting the requirements of mandated laws and regulations. In fact, good planning and the development of effective practices make regulatory compliance much easier. HR practices helps in increasing the productivity and quality, and to gain the competitive advantage of a workforce strategically aligned with the organization’s goals and objectives. KPI’s For HR PRACTICES Some of the key performance indicators for Human Resources include but are not limited to the following. Employees’ clarity on HR policies • Employees’ clarity on roles, responsibilities and expectations • Development of qualitative staff • Number of HR issues arising for which there are no clear policies and guidelines • Competitiveness of compensation structure relative to industry benchmark • Usefulness and accuracy of compensation survey • Lead time to respond to staff welfare issues • Employees’ assessment of promotion criteria and process (clarity, fairness) • Measurement of HR policy violation • Average time required to fill vacancies • Proportion of training programs resulting in productivity improvement • Staff attrition rate • Understanding / Clarity of the Organizational philosophy • Outline Internal capabilities and identify gaps on skills-competencies-behavioral aspects IBSAR Navi Mumbai ([email protected] co. in) Page 17 • Prepare HR strategic Objectives and bring in clarity as to how the HR strategy supports the organizational strategy • Develop KPI’s for each of the strategic objectives. • Track and measure performance Human Resources Best Practices The best practices in the management of human resources are the ones which optimize a workforce so that it can not only get work done, but also ensure a greater level of efficiency, timeliness and quality as it accomplishes increases productivity overall.
Hence the job of the best practices human resources firm is to make sure that these benefits and pay scales meet the company’s budget while remaining attractive and competitive enough to pull in the very best talent possible. We should know that these figures put the company in a good light while also presenting themselves as engaging and competitive for company’s recruitment efforts. OBJECTIVE OF HR PRACTICES:The main objective of HR Practices is to differentiate the organization from its competitors by effective and efficient HR Practices. By following this, the organization does its whole work process. The objective of HR Practices is to increase productivity and quality, and to gain the competitive advantage of a workforce strategically aligned with the organization’s goals and objectives.
As The Transparent HR practices can reduce attrition, BecauseTransparent HR practices ensure continuous business growth in every organization. It gives the suitable working environment to the employees. The success of company motivates the employees of organization to continue relationship with it. As all the employees Perks chart has been mentioned according to their designation in the HR practices, it helps the employees to know what their perks charts are. So it creates a transparency. IBSAR Navi Mumbai ([email protected] co. in) Page 18 OBJECTIVE of the PROJECT As we know the whole function of HR department depends upon the HR Practices of the organization.
The HR management is done according to the HR Practices of the company. Which things to be done and which things should not be done depend upon this only. It also helps the organization to achieve the target of the organization. The HR policies of the organization have been mentioned in the HR Practices. All the rules & regulations for the employees have been also mentioned in this. All the welfare of the employees’ processes is also mentioned in this. So the study of the HR Practices means basically the brief study of all HR functions in the organization. I believe the HR Practices is a vital part of an organization, which helps the organization to achieve the goal of the organization.
All companies are having their HR Practices but the company who is having the best, is the most successful company among its competitors. So the company can get success within its competitors by applying best, effective HR Practices. The main objective of the project is To understand the HR practices followed & Process of Performance Appraisal. To know what are the uses of HR practices for any organization. How these HR Practices help any organization to know its stand in the market and to be competitive by implementing good HR Practices for their employees. To understand how the organization would achieve its goals by implementing good HR Practices. To understand the work culture of the organization. HR function is very important in every organization.
It helps the organization to manage not only the people of the organization but to manage all the working processes in it also. HR is IBSAR Navi Mumbai ([email protected] co. in) Page 19 management function that helps managers to recruit, select, train and develop members for an organization. Obviously HR is concerned with the people’s dimensions in organizations. HR refers to set of programs, functions, and activities designed and carried out. HR practices of ULTRATECH Cement Ltd (RMC Division) Effective and Efficient HR practices are very much important for every organization. So, UTCL has also its HR Practices, which helps it a lot to achieve the targets.
Human Resource Management initiatives in any Organization endeavor to change, redefine, revisit, renew, reinvent, revitalize & restructure the Organization architecture. This is effectively done with the help of alignment & integration of HR policies & strategies with business goal & objectives. Definition of HRMHRM is concerned with the people dimensions in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential for achieving organizational objectives.
HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end so that individual, organizational and social objectives are accomplished. The HR practices of Ultratech Cement Ltd (RMC Division) are as follows: IBSAR Navi Mumbai ([email protected] co. in) Page 20 1. Recruitment and Selection: RECRUITME TIt is a process to discover the sources of manpower to meet the requirements of the staffing schedules and to employ the effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce. Edwin B. Flippo has defined it as “ the process of searching for prospective employees and stimulating them to apply for jobs in the organization. “ OBJECTIVES of RECRUITME T To attract people with multi-dimensional skills and experiences that suti the present and future organizational strategies, • To infuse fresh blood at all levels of the organization, • To develop an organisational culture that attracts competent people to the company, • To search for talent globally and not just within the company, • To design entry pay that competes on quality but not on quantum, • To anticipate and find people for positions that do not exists yet. IBSAR Navi Mumbai ([email protected]hoo. co. in) Page 21 PROCESS • Finding out the requirement (hiring vs. exit), upcoming vacancies, kind of employees needed. • Developing suitable techniques to attract suitable candidates. Stimulating as many candidates as possible. FACTORS affecting RECRUITME T I TER AL FACTORS Employer’s brand Company’s pay package Quality of work life Organisation culture Career planning & growth Company’s size Company’s products, services Role of trade unions Cost of recruitment Company’s name & fame. EXTER AL FACTORS Socio-economic factors Supply & Demand factors Employment Rate Labour market conditions Political, Legal, Governmental factors IBSAR Navi Mumbai ([email protected] co. in) Page 22 SOURCES of RECRUITME T I TER AL SOURCES Present employees Retired employees Dependent of present Employee Referrals Trade Unions Walk-ins Head Hunting Mergers & Acquisitions E-Recruitment
EXTER AL SOURCES Campus Recruitment Private employment consultant Data Banks Casual Applicants It helps in translating Business Strategy into people requirements. A combination of internal recruitment, campus recruitment, and executive search is leveraged to meet up to the changing needs of the organization In today’s rapidly changing business environment, organizations have to respond quickly to requirements for people. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization.
IBSAR Navi Mumbai ([email protected] co. in) Page 23 Selection It is one area where the interference of external factors is minimal. Hence the HR department can use its discretion in framing its selection policy and using various selection tools for the best result. Recruitment of staff should be preceded by: An analysis of the job to be done (i. e. an analytical study of the tasks to be performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage.
Effectively, selection is ‘buying’ an employee (the price being the wage or salary multiplied by probable years of service) hence bad buys can be very expensive. For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection. Equally some small organizations exist to ‘head hunt’, i. e. to attract staff with high reputations from existing employers to the recruiting employer. However, the ‘cost’ of poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants. Outsourcing is also done through consultancies by mentioning the requirement, number and time.
Where the organization does its own printed advertising it is useful if it has some identifying logo as its trade mark for rapid attraction and it must take care not to offend the sex, race, etc. antidiscrimination legislation either directly or indirectly. The form on which the applicant is to apply (personal appearance, letter of application, completion of a form) will vary according to the posts vacant and numbers to be recruited. Interviewing can be carried out by individuals (e. g. supervisor or departmental manager), by panels of interviewers or in the form of sequential interviews by different experts and can vary IBSAR Navi Mumbai ([email protected] co. in) Page 24 from a five minute ‘chat’ to a process of several days.
Ultimately personal skills in judgment are probably the most important. Training in interviewing and in appraising candidates is clearly essential to good recruitment. Largely the former consists of teaching interviewers how to draw out the interviewee and the latter how to rate the candidates. For consistency (and as an aid to checking that) rating often consists of scoring candidates for experience, knowledge, physical/mental capabilities, intellectual levels, motivation, prospective potential, leadership abilities etc. (according to the needs of the post). Application of the normal curve of distribution to scoring eliminates freak judgments
The Recruitment Process of UTCL- The recruitment process of UTCL Cement Ltd starts from the requirement of different departments as per to the org chart. Then they tell to the HR Department. HR Department takes the candidates IBSAR Navi Mumbai ([email protected] co. in) Page 25 from Data bank of company, Poornata etc, then does the short-listing, then does the scheduling for the interview. After this the selection and negotiation process occurs. Then offer letter is been given to the selected candidate. The employee then joins in the organization. Then the company arranges the Induction Program for the employee. After this the recruitment process ends with this.
The Chart of Recruitment & Selection Process has been given here. HOD Requisition for Vacancy to be as per Org Chart HR 1. Data bank 2. Req Agency 3. Poornata E D Scheduling the interview Induction Joining Offer Letter Selection & egotiation Short Listing IBSAR Navi Mumbai ([email protected] co. in) Page 26 2. Performance Management System It is a structured method of formally and objectively evaluating employees’ performance with respect to their objectives. It addresses the issue of an employee’s development by providing them with structured and in-depth analysis of strengths and areas of improvement. It provides with input for annual increments, training and development.
For an organization the aim should not be just to have the best people, but also to retain them and get best out of them. Employee Performance management includes planning work and setting expectations, developing the capacity to perform, continuously monitoring performance and evaluating it. Most organizations focus on an annual evaluation process for employees and call that Performance Management. However, annual evaluations are often subjective and can lack specific measurements and supportive data to help the employee truly improve their behavior. Simply putting, a Performance Management System is essential to the success of any organization because it influences the effort expended by employees, which in turn, drives bottom-line business results.
Furthermore, the Performance Management System helps an organization identify, recruit, motivate, and retain key employees. An effective Performance Management System should achieve the following: Review the employment cycle of every employee, Beginning with the recruiting process, Employee development, Ending with effective exit interviews. Employee’s knowledge, skills, and abilities with the organization’s human capital needs and business objectives. Provide managers and employees with the tools necessary to focus on short-term and long-term goals that contribute to both career and organizational success. IBSAR Navi Mumbai ([email protected] co. in) Page 27
Support the organization in developing and sustaining a culture that recognizes and rewards individual contributions and team performance. Promote a work climate that requires employees to remain flexibly focused. For instance, employees can manage current tasks and unit goals while keeping pace with, and adapting to, change in the work environment. HR Performance Management System can be performed in three steps: Needs Analysis Identifying Competencies Development of effective Performance Management System. PURPOSE For Administration• • • • • • • • Document HR decisions with regards to performance & its related issues. Determine promotion of employees.
Determine increment in pay of employees. Determine transfer & change in job assignments. Determine retention or termination. Decide on layoffs. Decide need for training Decide salary & related issues. For Development• Provide performance feedback to all concerned. • Identify individual skills, core competencies, strength & weaknesses. • Assist employees in setting goals. • Identify training needs. • Improve communication. IBSAR Navi Mumbai ([email protected] co. in) Page 28 Method employed • Rating & Contribution Management by Objectives (MBO)- • Advanced by Peter F. Drucker, way back in 1954. During last decade about 50 organisations have adopted MBO in work settings.
MBO is a process whereby superior & subordinate managers of an organization jointly identify its common goals, define each individual’s major areas of responsibilities in terms of results expected of him & use these measures of guides for operating the unit & assessing the contribution of its members. The MBO focuses attention on participatively set goals that are tangible, verifiable & measurable. The superior & subordinates jointly determine goals to be considered during appraisal period & what level of performance is necessary for subordinates to satisfactorily achieve specific goals. During performance appraisal period the superior & subordinates update & alter goals as necessary due to changes in business environment. If not achieved identify reasons for deviation. SYSTEM of Performance Appraisal – a) b) c) d) e) f) g) Establish Performance Standard. Communicate standard & expectation to employees.
Measure actual performance, by following instructions. Adjust actual performance due to environment influence. Compare actual performance with set standards & find out deviations. Suggest changes in job analysis & standards if necessary. Follow up. IBSAR Navi Mumbai ([email protected] co. in) Page 29 PROBLEMS• Rating biases• Halo effect • Error of central tendency. • Personal Prejudice. • Recency effect. Mainly the performance management of UTCL is done by online system includes the following basic processes 1. 2. 3. Annual goal setting Mid year review Annual performance review IBSAR Navi Mumbai ([email protected] co. in) [email protected] co. in) Page 30 1. Annual goal setting –
In the month of April/May every year, after the annual planning and budgeting rounds, all teams identify their KRA’s and goals for the forthcoming financial year. This process occurs by offline. Then the employees fill their goal setting document in the Poornata system, listing the KRA’s, Goals, Measurement Criteria, Assigning Weightage and due date for completion of specific goals as already discussed offline. Then they notify the same to their manager/immediate supervisor and await approval. The manager recommends any changes if required or else approves the goals set in the document. The approval of the goals set by the managers completes the goal setting process. The approved documents will be then available to the employees as well as their managers for the reference throughout the year.
These documents can also be viewed by manager’s manager (Reviewer) for their indirect subordinates. IBSAR Navi Mumbai ([email protected] co. in) Page 31 2. Mid Year Review: Mid year review of goals set at the beginning of the financial year held on the months of October/November every year. The mid year review generally initiated by the manager. The main focus of the mid year review is to check if the goals set at the beginning of the year are relevant or if they need to be revised or updated. The mid year review is also an opportunity for the manager and his team members to identify and discuss about any performance issues and initiate corrective action for the same. The mid year review does not entail any ratings. 3.
Annual Performance review: The annual performance reviews against goals set and achieved held during the months of AprilMay every year. The employee completes his self-review /appraisal against goals set, online in the Poornata system and submits the same to his manager for review. The manager then discuss the performance of the employee with him/her off-line, give him feedback on his performance and capture his own comments and performance ratings against goals and overall ratings in the manager’s evaluation form. The manager also discusses the employee’s performance as well as rating with the manager’s manager (reviewer) and sends the document to the HR department for further processing. IBSAR Navi Mumbai ([email protected] co. n) Page 32 3. Training and Development The needs of individual are objectively identified & necessary interventions are planned for identified groups, which get rolled out in a phased manner through training calendar. The training and development program is charted out to cover the number of trainees, existing staff etc. The programs also cover the identification of resource personnel for conducting development program, frequency of training and development programs and budget allocation. Training and development programs can also be designed depending upon job requirement and analysis. Selection of trainees is also facilitated by job analysis.
The company has a strong focus on manpower training according to their requirements. The internal training department aims at improving the skill sets relevant to the work profile of employees. • This includes improving communication • Different skills • E-mail programming • Operation systems. The design of the training program can be undertaken only when a clear training objective has been produced. The training objective clears what goal has to be achieved by the end of training program i. e. what the trainees are expected to be able to do at the end of their training. Training objectives assist trainers to design the training program. IBSAR Navi Mumbai ([email protected] co. in) Page 33
Training DesignThe trainer – Before starting a training program, a trainer analyzes his technical, interpersonal, judgmental skills in order to deliver quality content to trainers. The trainees – A good training design requires close scrutiny of the trainees and their profiles. Age, experience, needs and expectations of the trainees are some of the important factors that affect training design. Training climate – A good training climate comprises of ambience, tone, feelings, positive perception for training program, etc. Trainees’ learning style – The learning style, age, experience, educational background of trainees must be kept in mind in order to get the right pitch to the design of the program.
Training strategies – Once the training objective has been identified, the trainer translates it into specific training areas and modules. The trainer prepares the priority list of about what must be included, what could be included. Training topics – After formulating a strategy, trainer decides upon the content to be delivered. Trainers break the content into headings, topics and ad modules. These topics and modules are then classified into information, knowledge, skills, and attitudes. Sequence the contents – Contents are then sequenced in a following manner: • From simple to complex • Topics are arranged in terms of their relative importance • From known to unknown • From specific to general • Dependent relationship
Training tactics – Once the objectives and the strategy of the training program becomes clear, trainer comes in the position to select most appropriate tactics or methods or techniques. The method selection depends on the following factors: IBSAR Navi Mumbai ([email protected] co. in) Page 34 • Trainees’ background • Time allocated • Style preference of trainer • Level of competence of trainer • Availability of facilities and resources, etc lities Improve performance IBSAR Navi Mumbai ([email protected] co. in) [email protected] co. in) Page 35 “Training & Development is any attempt to improve current or future employee performance by increasing an employee’s ability to perform through learning, usually by changing the employee’s attitude or increasing his or her skills and knowledge. ”
MEA I G OF TRAI I G & DEVELOPME T ACCORDI G TO UTCL: The need for Training and Development is determined by the employee’s performance deficiency, computed as follows. Training & Development Need = Standard Performance – Actual Performance Training: Training refers to the process of imparting specific skills. An employee undergoing training is presumed to have had some formal education. No training program is complete without an element of education. Hence we can say that Training is offered to operatives. Development: Development means those learning opportunities designed to help employees to grow. Development is not primarily skills oriented.
Instead it provides the general knowledge and attitudes, which will be helpful to employers in higher positions. Efforts towards development often depend on personal drive and ambition. Development activities such as those supplied by management development programs are generally voluntary in nature. Development provides knowledge about business environment, management principles and techniques, human relations, specific industry analysis and the like is useful for better management of a company. The Training Inputs are • Skills • Education • Development • Ethics • Problem Solving Skills • Decision Making • Attitudinal Changes IBSAR Navi Mumbai ([email protected] co. in) Page 36 Importance of Training & Development Helps remove performance deficiencies in employees • Greater stability, flexibility and capacity for growth in an organization • Accidents, scraps and damages to machinery can be avoided • Serves as effective source of recruitment • It is an investment in HR with a promise of better returns in future • Reduces dissatisfaction, absenteeism, complaints and turnover of employees eeds of Training Individual level • Diagnosis of present problems and future challenges • Improve individual performance or fix up performance deficiency • Improve skills or knowledge or any other problem • To anticipate future skill-needs and prepare employee to handle more challenging tasks • To prepare for possible job transfers Training given on Safety aspects • Behavorial aspects • Technical aspects • Communication skills IBSAR Navi Mumbai ([email protected] co. in) Page 37 Identification of Training eeds (Methods) Individual Training Needs Identification 1. 2. 3. 4. 5. 6. 7. Performance Appraisals Interviews Questionnaires Attitude Surveys Training Progress Feedback Work Sampling Rating Scales Group Level Training eeds Identification 1. 2. 3. 4. 5. 6. 7. 8. 9. Organizational Goals and Objectives Personnel / Skills Inventories Organizational Climate Indices Efficiency Indices Exit Interviews MBO / Work Planning Systems Quality Circles Customer Satisfaction Survey Analysis of Current and Anticipated Changes
Benefits of Training eeds Identification 1. 2. 3. 4. Trainers can be informed about the broader needs in advance Trainers Perception Gaps can be reduced between employees and their supervisors Trainers can design course inputs closer to the specific needs of the participants Diagnosis of causes of performance deficiencies can be done. IBSAR Navi Mumbai ([email protected] co. in) Page 38 5. Talent Management It is a holistic and systematic process, across the group. It is built on the work done so far on people processes, and has a Talent Identification and Talent Development Strategy for all the 3 levels of management i. e. Senior, Middle & Junior Management.
This is facilitated by Development Assessment Center followed by Individual Development Plan, enabling planned succession and career management. The talent management process includes HR process for • Recruitment, • Performance, • Compensation, • Succession planning, • Learning and other capabilities around self-service, • Analytics IBSAR Navi Mumbai ([email protected] co. in) Page 39 • Reporting. With businesses going global and competition becoming intense, there is mounting pressure on organizations to deliver more and better than before. Organizations therefore need to be able to develop and deploy people who can articulate the passion and vision of the organization and make teams with the energy to perform at much higher levels.
Talent management is a key business process and like any business process takes inputs and generates output. Talent management is a professional term that gained popularity in the late 1990s. It refers to the process of developing and fostering new workers through onboarding, developing and keeping current workers and attracting highly skilled workers to work for your company. Talent management in this context does not refer to the management of entertainers. Companies that are engaged in talent management (human capital management) are strategic and deliberate in how they source, attract, select, train, develop, promote, and move employees through the organization.
This term also incorporates how companies drive performance at the individual level (performance management). The term talent management means different things to different people. • To some it is about the management of high-worth individuals or “the talented”. • To others it is about how talent is managed generally – i. e. on the assumption that all people have talent which should be identified and liberated. Talent management decisions are often driven by a set of organizational core competencies as well as position-specific competencies. The competency set may include knowledge, skills, experience, and personal traits (demonstrated through defined behaviors)
IBSAR Navi Mumbai ([email protected] co. in) Page 40 5. Job Analysis & Evaluation It is broadly categorized in two parts. Job Analysis is a process to understand the job, identify and disaggregate the activities, competencies and accountabilities associated with the job. It defines and clusters the task required to perform the job. It also clarifies boundaries between jobs. The output of Job Analysis exercise is referred to as job description. . IBSAR Navi Mumbai ([email protected] co. in) Page 41 STEPS (Process of Collecting Information) “Job Analysis is a process of studying and collecting information relating to operations and responsibilities of a specific job.
The immediate products of this analysis are ‘Job Description’ and ‘Job Specifications’. ” (S ystematic Exploration of Activities) “Job Analysis is a systematic exploration of activities within a job. It is a basic technical procedure that is used to define duties and responsibilities and accountabilities of the job. ” (Identifying Job Requirements) “Job is a collection of tasks that can be performed by a single employee to contribute to the production of some product or service, provided by the organization. Each job has certain ability requirements (as well as certain rewards) associated with it. Job Analysis is a process used to identify these requirements. Each job is a unique description of a role that a person can hold in an organization or required to be performed for the business benefit of that organization. When jobs are created, their tasks and requirements are taken into consideration. Jobs are used in the following components: • Job and Position Description • Shift Planning • Personnel Cost Planning • Career and Succession Planning Note: Job descriptions should be as general as possible and as detailed as necessary. IBSAR Navi Mumbai ([email protected] co. in) Page 42 JOBS Jobs Jobs are general classifications of tasks performed by employees Examples : Head of Department Buyer Secretary Secretary Buyer Head of Department ? IBSAR Navi Mumbai ([email protected] co. in) Page 43 Positions Positions
Positions are the concrete representation of jobs. They are held by individuals at your enterprise. Positions are specific to your enterprise More than one position can be based on the same job Each position typically represents one employee, but may be partially filled by more than one Job: Head of Dept. Position: HOD : Purchasing Position: HOD : Sales Position: HOD : HR IBSAR Navi Mumbai ([email protected] co. in) Page 44 Once you have created a job, define the number of positions required the enterprise. Jobs are not staffed by employees. That is the role of positions. If more than one person must perform jobs, more than one position must be created to meet this requirement.
A position inherits the job’s tasks, and can also be assigned its own additional tasks. Positions can be 100% staffed, partially staffed, or vacant. When we define a position as vacant, the system prompts us to define the period for which the position will be vacant There will be a central authority that will be designated to declare vacancies and make them available for Recruitment (both internal and external). Positions can fall vacant due to reassignment or Separation as well. Such positions become unoccupied and not vacant. Vacancy is thus a declared feature for a position. A chief position is a position designated as the leader of a particular organizational unit.
By matching the requirements of a position and the qualifications of the employees, we will be able to do career planning for employees and succession planning for positions. A profile matching reports can also be run to review the results of how an existing employee or an applicant fares against the requirements of a position. IBSAR Navi Mumbai ([email protected] co. in) Page 45 6. Organizational Structure Using the basic object types – constructs of relationships is built to mirror the business edifices and processes. By assigning object characteristics, validations, requirements etc, we can capture complex organizational realities with relative ease. Process Flow: • Before creating all of the other necessary objects and relationships, the user must first create a root organizational unit.
Once one organizational unit has been created, it is recommended to l create the appropriate organizational units below it. • Jobs may be created after an organizational unit exists in the model. • You can assign cost centers to organizational units and Positions. IBSAR Navi Mumbai ([email protected] co. in) [email protected] co. in) Page 46 Inputs: Organization chart • Root org unit • Additional Org units • Jobs if Required • Positions • Details to where the positions need to be mapped. • Position Details like Position Type, Position Sub Type, Department, and Sub department. Every organization has its organizational structure. According to this every employee has some specific work.
The work also depends upon their levels. As per their levels in different departments they will have to do their work. In RMC business, there are different departments so as to organize the work efficiently and effectively. These are: • HR • Marketing • Technical • Commercial and Accounts • IT • Key Accounts • CRM • Quality As for different departments different works has been specified for the different levels of people. It helps them to perform their work, which has been specified to him. For similar jobs also the work of the employees’ has been structured properly, to avoid the repetition of the work with the other employees. It helps in decrease the overlapping of the work.
IBSAR Navi Mumbai ([email protected] co. in) Page 47 To manage the different levels of work the employees have been separated in to different designations and different depts. According to their area of specialization. The designations which have been given to the employees are based on the skills they have, grades, knowledge, varying experiences. These designations have been specified as per the standard HR Practices of the organizations, so as to make the organization different from other organizations. In this way the organization stands in a better position than its competitors in the competitive business. IBSAR Navi Mumbai ([email protected] co. in) Page 48
The different designations given to the employees in UTCL (RMC Division) are given in the following table. Designation (s) Jt. President /Jt. Exc. President Sr. Vice President Vice President Asst. Vice President Sr. General Manager / General Manager Dy. General Manager Sr. Manager Manager Dy. Manager Asst. Manager Sr. Engr. /Sr. Officer Engineer / Officer Asst. Engr. / Asst. Officer Jr. Engr. /Jr. Officer Sr. Supervisor Supervisor Support Staff IBSAR Navi Mumbai ([email protected] co. in) Page 49 7. Human Resource Information System POORNATA, an ERP (People soft) implementation of Human Resource practices has been introduced in UTCL to elevate HR processes to world class levels and standardize them across Units and Businesses.
This has resulted in single integrated HR-ERP for all management cadre employees of the group. These automated HR Processes will also aid in faster, efficient, timely and accurate data availability to Management for decision-making. UTCL’s People Soft Enterprise Performance Management (EPM) enables it to achieve world-class performance by aligning the right information and resources to strategic objectives. People Soft EPM offers performance management solutions for every budget and every phase of the management cycle, helping its managers to formulate strategies for profitable growth, align strategies with operational plans, and actively monitor day-to-day operations. Poornata helps a lot in the different works of the organization.
It helps in the following ways • It helps in entry of all the database of all the employees. • It reduces time to note all the databases of the employees. • It reduces different mistakes or errors while maintaining the databases • It helps in doing performance appraisal of the employees. • It also helps in doing the data updation of the employees. • It helps in recruitment and selection of the employees • It reduces the time of the work • It also reduces the no of employees for maintaining the database. • It helps in maintaining the job description of employees. • It records the compensation details for the employee. Poornata also helps the employees in this way, IBSAR Navi Mumbai ([email protected] co. in) Page 50
Once the data of an employee entered in to Poornata (ERP), the employee gets a Poornata ID, which helps the employees to know about the different policies of Organization. They can know these policies directly from the ERP system. As it done only through Online, there is no delay in getting different infomations. It also helps them to do the reporting to the concerned person. They can also fill their problems which they face during their work and send to their departments. In this way Poornata helps not only the managers but the employees also. Poornata (ERP) helps UTCL in the following ways Poornata helps in performing day to day roles. Introduction – Poornata helps in creating and updating of the positions of the employees.
Each position will correspond to specific vacancy in the organization, have a specific headcount defined for it and is also tied to the following specific attributes: • Business unit • Department • Company • Job code • Location • Regulatory Region • Job Function • Reporting to position (The position to which this particular position reports to) • Career stages Every time one or more of the above attributes change, the same have to be updated for the position, or a new position may need to be created corresponding to the new combination of the attributes. IBSAR Navi Mumbai ([email protected] co. in) Page 51 Any individual who occupies a position will inherit the above-mentioned attributes of the position. A position is thus specific and particular opening in the organization, as opposed to job codes, which are more generic in nature. Job codes reflect the job points of the jobs across the organization, whereas a position number reflects a specific job description in the organization. Poornata helps and gives hints and warns the user the important information he must know about the Poornata system. • It provides the additional information to assist the user & provide key information. • It also tells the frequently asked questions with respect to hiring employees. • It also shows the common error and warning messages that the user may get at the time of hiring. It needs the information about regarding these: Employee ID, Position Number, Job code (the job points of the employee), Company (The legal entity to which an employee /department is attached. ), The Business unit to which the employee belongs to, Location (i. e. where the employee works), Department etc.
Following are the steps that will be used to maintain positions and department budgets • Creating new positions • Updating the information for existing positions as and when required 1. Creating a new position A position corresponds to a specific vacancy in the organization. Hence a position should be created in Poornata, only when a new vacancy has arisen in the organization, and the approval for the same has been obtained offline. Only after the offline approval has been obtained, should the position be created in the system, i. e. only pre-approved positions should be entered in to the system. 2. Updating The information for existing positions IBSAR Navi Mumbai ([email protected] co. in) Page 52
From time to time the user should update the information for an existing position. Typical situations are when: • The position attributes or the approved max headcount for the position has changed. • The position no longer exists. • Organizational Restructuring. Direct Hire Process: It helps in doing the directly hiring an employee by Poornata system. Introduction: The direct hiring process involves an employee being directly added to the Poornata system that is the situation where his information doesn’t exits as applicant in the Poornata system. An employee on joining the group would fill up the joining check list and the related forms as per the unit policy.
The HR administrator would then hire him into the system by capturing his relevant information with respect to his personal job compensation, qualifications and dependents’ information. The hire action will be used to capture the event of the employee’s joining the organization. There can be either of two reasons for hire: • Joining the ABG: This will reflect the situation where an employee joins a unit of the ABG group directly. • Joining the acquired company: This will reflect the situation where an employee had joined an organization, which was subsequently acquired by ABG. Going forward the action of joining the acquired company will be used to enter the data of those employees from the non-management cadre moving into the management cadre who had originally joined a company that was acquired by ABG.
The following information would be captured at the time of hiring the employee. IBSAR Navi Mumbai ([email protected] co. in) Page 53 • Personal information – Name, address, NIN, DOB, gender marital status, religion / caste. • Job related information related to hiring, his position a related details. • Compensation information with respect to the break of his CTC Recording personal actions for an employee Introduction: Post hiring as the employee moves through the organization, there would be various kinds of updation in the employee data. Broadly the processes that an employee could move through in the course of his life cycle in the organization comprise: • Probation, followed by confirmation. Promotion • Pay rate change • Transfer • Resignation • Termination • Separation /Retirement IBSAR Navi Mumbai ([email protected] co. in) Page 54 8. Compensation Philosophy of the companyIt is an outcome of what the Organization would like to pay for, which is determined by external and internal factors. All the processes are aligned to reinforce the philosophy. The company views compensation not only as something that reflects on the pay slip or in the CTC (Cost To Company) but also they are concerned about overall employee well being though they may not put any monetary value on items like Scholarships, Club membership, Retirement benefit, Health and Accident coverage.
The Group’s approach towards various aspects of compensation focuses on: • Pay for performance (Variable Pay) Rewards stretch performance which is linked to business, team and individual results • Compensation increase Pay for the job Internal equity based on contribution to the organization • External benchmarking Relevant industry segment and people market Parameters beyond compensation: head count/ level/ reporting Individual profile and performance To be market aware, not blindly follow market practices • Compensation structure Tax efficient but compliant Common perk structure but varying amount IBSAR Navi Mumbai ([email protected] co. in) Page 55 Three major terms used in the company’s compensation: 1.
Fixed Cost: It is the fixed component of the salary that is committed to an employee and is paid on monthly / annual basis. This includes base salary, all perks and reimbursements and retrials such as PF, Gratuity and Superannuation. 2. Variable Pay: This is the variable component, payout of which is contingent on Business, Unit/Zone and Individual performance. Targets for the year will be fixed and communicated at the beginning of every performance year 3. Cost to Company: This is a sum of Fixed Cost and Variable Pay. CTC is decided based on designation, qualification and experience. Basic is around 42% of fixed cost without housing. Perks and allowances are fixed as per the designations.
Variable pay based on job band is payable at 18%, 15% and 12% of fixed cost without housing. Balance amount is paid as special allowance. IBSAR Navi Mumbai ([email protected] co. in) Page 56 9. EXIT I TERVIEWS An exit interview is simply a conversation between a departing employee (who is leaving the company either voluntarily or involuntarily) and a representative from the organization. The interview can follow a structured format or be conducted on an informal basis; written questionnaires can even be used in place of a face-to-face meeting. Whichever format is used, exit interviews are generally documented. Traditionally, exit interviews are conducted with employees leaving an organization.
The purpose of the interview is to provide feedback on why employees are leaving, what they liked or didn’t like about their employment and what areas of the organization they feel need improvement. Exit interviews are one of the most widely used methods of gathering employee feedback, along with employee satisfaction surveys. Benefits of Exit Interview Exit interviews can be a win-win situation for both the organization and the leaver. The organization gets to retain a portion of the leaver’s knowledge and make it available to others, while the leaver gets to articulate their unique contributions to the organization and to ‘leave their mark’. Exit interviews offer a fleeting opportunity to find out information that otherwise might be more difficult or impossible to obtain. The exit interview is an important learning tool for employers.
When properly conducted, the interview provides the employer with the opportunity to: • Discuss and clarify the reasons for the termination • Clarify pay and benefits issues (e. g. , receipt of the last paycheck, the amount of unused vacation, conversion or continuation of benefits, terms of a severance package, unemployment insurance, etc. ) • Explain company policies relating to departing employees (e. g. , trade secret confidentiality, restrictive covenants or non-compete agreements, the possibility of future re-employment, freelance or contract work, the provision of references to prospective employers, etc. )