AMITY BUSINESS SCHOOL, NOIDA

REPORT ON:

HR PRACTICES IN MANUFACTURING
INDUSTRY

SUBMITTED TO :

MS. PRACHI AGRAWAL

SUBMITTED BY:

GROUP

Shivendra P. Singh (F-34)

P. Krishna Chaitanya (F-35)

Sachin Dang (F-37)

Pranav Pravin (F-38)

 HR Practices in Manufacturing Industry

ACKNOWLEDGEMENT

We members of Group , would like to take this opportunity to express [2010]

gratitude to our teacher and mentor, Ms. Prachi Agrawal, for providing us support
and constant guidance without which we would not have been able to complete the
project.

Her constant guidance and support made this work an enriching experience
for us. We were able to learn so much about the holistic, integrated, Principle-
centric approach for solving personal & professional problems.

Lastly we would like to thank all those who have directly or indirectly
assisted us in completing this project which includes those who provided with the
congenial environment for work and our friends and family who at different times
provided us with the required data.

Group

INDEX
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 HR Practices in Manufacturing Industry

1. INTRODUCTION
[2010]

2. OBJECTIVE

3. METHODOLOGY

4. HR PRACTICES

5. CONCLUSION

6. BIBLIOGRAPHY

INTRODUCTION

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 HR Practices in Manufacturing Industry

Companies today are constantly striving towards enhancing the quality of work life and also the
personal life of its employees and this does not stop with the employee buts gets extended to his /
her family as well. In-house health clubs, yoga and meditation centers to relieve stress, sports
and cultural activities, employee get-togethers with invitations to come over with families, day
[2010]
care centers and many of the like are being provided by companies.

If we trace back the history of business environment, in the early years, trading patterns and
markets were stable, technology was static, customers were passive, speed in getting to market
was secondary, competition was limited to sectors and regions, and hierarchies were generally
accepted in all walks of life. No more, since 1960’s, America and much of the rest of the world
has been almost continually buffeted by change. Customers demand that businesses do it better,
faster, cheaper; employees want to control more than the “Stop” button on the assembly line. The
twentieth century saw nations around the world become part of the global village, with trade
barriers between them reduced or removed completely. Globalization of trade and economy are
taking deep roots in India. The holistic paradigm shift to a single global company has opened up
new economic opportunities. Events of the last five years of the previous century have focused
our attention on knowledge industries. Quality human resources have therefore become an
important base with which to respond to the emerging environment. The knowledge workforce in
particular has a vital role to play in the emergence of the digital economy.

A look at the trends in managing people in this dynamic industry reflects that Attracting,
Managing, Nurturing talent and Retaining people has emerged to be the single most critical issue
in lieu of the enormous opportunities spun off by the market. The new avatar of talent is the
knowledge professional who is innovative, business savvy, quick on the uptake, has an
instinctive ability to network, and possessing unbridled ambition. They are propelled by an urge
to experiment, scan new avenues that can spur their creativity. The knowledge professional will
gravitate to an organization that is flexible, has strong values, a robust performance ethic and
provides challenging work on latest technology. This has led to companies proactively taking
measures on three fronts. First, companies create an organizational ambience where talent can
bloom. Second, they put in place systems that help unleash their potential and third, they build a
reward and recognition mechanism that provides value for people.

So these are the reasons why HR trends are changing these days.

Objective

• To understand the new HR Trends in Manufacturing Industry.

• To Understand the problems of different HR practices.

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 HR Practices in Manufacturing Industry

• To foster excellent personnel and have these personnel display their potential to the utmost
degree
• To develop knowledge and skill competent personnel
[2010]
• To habituate to continuous education & training, as an organizational initiative

Methodology
• Multi - skilling employees

• Use of 5 Senses for observation and judgement

• Improving knowledge, skill and morale

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 HR Practices in Manufacturing Industry

• Class room training, Seminars

• On the job training

• Emerging new HR trends [2010]

HR best practices at Tata Steel Processing and distribution limited:

Tata Steel Processing and Distribution Limited believes in the philosophy of Continuous
Learning, for all employees. The spirit of learnability among our people and an organisational
commitment to continuous personal and professional development keeps Tata Steel Processing
and Distribution Limited at the forefront in a fast-changing industry.

Our framework for continuous learning is built around a number of focused programs for our
employees. These range from major initiatives such as various ongoing management

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development and personal improvement programs. They complement a host of technology

advancement and ongoing training options.

TSPDL follows the Tata business excellence model (TBEM) and some of the best practices
are: [2010]

Employee engagement:
It has its own engagement model which is as follows:

Employee satisfaction survey:

TSPDL annually conducts EESS(Employee engagement and satisfaction survey) which is
outsourced to TNN.

Succession planning:
Tata has traditional approach of succession planning.

HRIS: (Human Resources Information System) The Human Resource Information System
(HRIS) is a software or online solution for the data entry, data tracking, and data
information needs of the Human Resources, payroll, management, and accounting
functions within a business
TSPDL has in-built SAP since its inception in 1997

Centralized recruitment system:

The recruitment practices of an organisation are centralized when the HR / recruitment
department at the head office performs all functions of recruitment.

Recruitment decisions for all the business verticals and departments of an organisation are
carried out by the one central HR (or recruitment) department. Centralized from of recruitment is
commonly seen in government organisations.

Employee development

Induction:
For new joinees, Tata Steel Processing and Distribution Limited has a practice of providing
Induction Training, which includes the following modules:

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 HR Practices in Manufacturing Industry

Basic Orientation Training

Safety Training

ISO 9000 / TS 16949 Training [2010]

SAP Training

Structured On-the-job training: training method where experienced employees take new
employees under their wing, instructing and coaching them on how to perform their job, giving
them the benefit of years of experience.

TPM (Total Productive Maintenance) Training

Inter unit learning visits

Visits to customers' sites

Other mechanisms for developing Employees include:

Kaizen certification test: is a tiered qualification & certification program that enables a company
to obtain lean skills based on global best practices.

Ryerson USA visit

Study Leave

Performance Counseling

360 degree feedback and follow up

Continuous improvement teams

Membership to professional bodies, libraries

Fun at work
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Job Rotation

Inter job posting

[2010]

HR Practices at JK Lakshmi Cement

Recognising the importance of our most valuable asset – our employees – the HR at JK Lakshmi
has devised various management strategies to capitalize and further enhance the human potential.

Performance Management

The Performance Management System at JK Lakshmi Cement ensures that performance and
achievement do not go unnoticed. It provides an opportunity to the employees to monitor their
progress and develop into complete professionals. The cornerstone of our Performance
Management System is the Appraisal System. Individual performance targets in the form of Key
Result Areas (KRAs) are set at the beginning of the year through consultation with the reporting
managers. At the end of the year, each employee’s performance is assessed against the set KRAs.
Performance Management provides the employee an opportunity to discuss his/her achievements
during the given period and to focus on improvement areas.

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 HR Practices in Manufacturing Industry

Succession Planning

We believe in creating and nurturing leaders. Leadership is about lifting a person's vision to
higher sights, the raising of a person's performance to a higher standard, the building of a
personality beyond its normal limitations. Succession planning is a must in order to ensure that [2010]
the organization has the right people in place to handle future challenges. Mentoring and
coaching processes are essential for grooming future leaders. Succession planning is meant to
ensure that the right people with the right skills are in the right place at the right time.

Training & Development

We lay a lot of emphasis on developing our employees beyond their present boundaries,
broadening their horizon, enabling them to think the unthinkable and rise above the benchmarks
they set for themselves. We take pride in the internal and external training programmes
organized for our people. Here, the word internal also has a special significance because we train
our own people to become Trainers for the rest of their team.

Assessment and Development Centres

Assessment and Development Centres provide organizations with a huge amount of useful and
validated data about the potential of new recruits or the performance and development needs of
existing employees. Setting up of these centres involves the identification and designing of
multiple assessment processes for a group of participants. Assessment and Development Centres
are considered the most effective tool for identifying future managers. They help an organisation
to promote and hire the best resources by evaluating their knowledge, behavioural traits, skills
and competencies.

HR Practices at RAYMOND

Craftsmanship, teamwork and professionalism have come together at Raymond to weave tales of
the finest Fabrics for over 80 years. Today, it has gained its market leadership position primarily
on the strength of its vast talent pool.

The company has always emphasized on the continuous and consistent upgradation of manpower
in order to fully embrace the rapid changes in the textile industry. It has always fostered a
growth-oriented environment enabling all its employees to fully realize their potential.

MANPOWER RESOURCING

Internal Resourcing

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The company first scouts for talent within the organization to provide growth opportunities to its
employees. This is done by notifying vacancies internally. This practice helps in managerial
cross-functional exposure for career development and learning.

Talent from Campus [2010]

Raymond recruits young textile engineering graduates, textile technologists, chartered

accountants, fashion technologists and MBA's only from some of India's leading Institutes. They
are then rigorously trained for a period of one year, during which they are placed across different
departments, before being finally placed in their area of specialization. The objective of the
programme is to gauge the recruit's area of expertise and then train them to independently
shoulder their responsibilities. A Mentoring programme for new inductees in the organization
enables them to adapt themselves to the organization.

Lateral Recruitment

'Market-skilled' employees from other companies are periodically inducted into the organization
from time to time. A combined force of existing talent and induction of fresh blood helps the
company to be competitive in the face of increasing business complexities.

CONTINUOUS LEARNING AND DEVELOPMENT

Organizational excellence is achieved only through continuous investments in growth and

renewal of human resources.

A detailed training and development plan is drafted and implemented each year, which
comprises level-wise planned interventions as well as specific need-based interventions through
Training Need Analysis. This equips the team to excel in their current roles while also preparing
them for future roles.

There is great emphasis on behavioral and attitudinal training apart from technical and on-the-job
training.

Raymond Management Development Programme

The Raymond Management Development Programme (RMDP) provides participants designated
from various divisions at Raymond with basic and advanced management perspectives and an
opportunity for self-learning. The participants will be trained at Welingkar Institute of
Management Development & Research, Mumbai followed by sessions back home over the next
six months.

PERFORMANCE MANAGEMENT
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 HR Practices in Manufacturing Industry

At Raymond, an Performance Management System provides opportunity for employees to

explore their potential for professional growth and personal development.Good performers are
promptly recognized and rewarded. Developmental needs and future potential are established
through assessment centers and on-line testing . Feedback is shared on an on-going basis and
reward and recognition are linked through measurement of Key Result areas. [2010]

360-Degree Feedback System

A 360 Degree Feedback System provides senior managers with valuable inputs through
assessment from their colleagues, subordinates and internal as well as external customers. This
enables the management to prepare their employee's individual development plans by
understanding their potential, interests and goals

Employee Involvement

Raymond believes that employee involvement is the key to continuous improvement, sound
decision-making and developing an open and transparent organization. Open forums provide
opportunities to employees to share their views regarding people policies. This ensures a
foundation of people centric policies. An online HR Manual brings transparency in HR
processes. Latent creativity among organizational members is tapped through initiatives like
Kaizen, Quality Circles and Suggestion Schemes in units.

The Raymond Interchange, a think-tank of the Co's top management group, is an on-going
initiative which harnesses the collective views on business strategy and is one of the drivers of
employee involvement. Usage of the internal branding concept throughout the Group also plays
an important role in driving employee involvement. We are proud of the fact that we are one of
the most empowered organizations in terms of decision making down the line.

COMPENSATION & BENEFITS

Wherever Raymond has created industry and employment, it has also provided educational,
housing, recreational and spiritual support systems for its people. Employees' children have the
facility to enroll themselves in the schools run by the J.K. Trust, at 50% of the fees. In many
cases, children's education is absolutely free. From subsidised transport facilities or availability
of Raymond products at concessional rates to its employees; the company always strives to make
employees feel a part of the large Raymond family.

General HR Practice in Manufacturing (Retail) Industry

These Practices are used in Shahi Exports & Reliance Garments(Retail).

Scope for employment opportunities:

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 HR Practices in Manufacturing Industry

It is small wonder then that retail sector has open the floodgates of employment opportunities to
the Indian youth. Statistics reveal that the organized retail sector has increasing employee base
burgeoning from 5.4 lakh to an awesome 16 lakh over the last couple of years.

About 11.5 lakh jobs in the organized retail sector and 2 million jobs in the unorganized retail [2010]
sector will be thrown open by 2010 what with the likes of key players in including Pantaloon
India, RPG Retail, Lifestyle, Wills lifestyle, Shoppers shop, Trent Ltd, Crosswords Bookstores
Ltd., Ebony Retail Ltd. and Reliance Retail Ltd. And the retail sector has abundant opportunities
for part time positions as well due to the long working hours.

Compensation packages:

In general, hefty salary packages with attractive perks and allowances are offered by the
employers luring the talent of this country into the retail industry. Surprisingly the average salary
of even a fresher could be up to Rs.20,000/- with an assured average salary hike of 16% per
annum. In some organizations the growth in salary ranges from Rs.60,000/- to Rs.70,000/-
annually.

HR practices in some of the most successful retail verticals in India:

Apparels: Pantaloon India: Here is a retail giant which hires at least 250 MBAs for operations
and merchandising profiles. The candidates go through an induction period and a short training
thereon. Individuals are allotted projects for the next five months under the supervision of project
guides. They are placed in suitable positions thereafter, with progressive authority and
responsibility.

Food and grocery: It is estimated that the food and grocery market in India is an astounding
$236 billion, and it is the sixth largest grocery market in the world today. No doubt that human
resources are an important asset in this food and grocery retail industry. Many top companies
have made HR a strategic partner in their operations. One famous example is Nestle, the global
=fgiant in consumer packaged goods. Nestle has a strong internally developed employee backing
which gives a major push to the company's lead position in the retail industry.

Attrition rates and retention of personnel:

There seems to be a high level of attrition in the retail sector which is almost 40% according to a
recent study. Front end jobs are facing an attrition rate as high as even 80%.

Under the present circumstances, retention and motivation of personnel has become the major
concern of HR. A congenial working atmosphere, support learning and training facilities, a
highly competitive pay structure are some of the effective retention practices followed by the
retail sector.

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 HR Practices in Manufacturing Industry

While money is the main attraction for freshers and starters, career satisfaction is the main reason
with experienced personals. Assigning the "right project to the right person" is the organizational
motto these days with companies setting up Manpower Allocation Cells (MAC) to carry out this
agenda.
[2010]
Looking at the current scenario, it could be said that there is an acute shortage of middle level
management professionals in the Indian Retail Industry. The current trend is to hire from a
smaller organization tempting the incumbent with a better pay package. It is imperative that
suitable talent be hired in various areas such as technology, supply chain, logistics, product
development and marketing in order to stay abreast of the hectic race for success among MNCs.

The call is for HR practitioners to play a more proactive and prominent role in order to retain the
high tech skilled employees who are constantly looking for greater gains and prospects in their
work. This is the real HR challenge to retain the "knowledge workers" and "knowledgeable
workers" by introducing new processes and procedures and still ride high in implementing
organizational effectiveness.

CONCLUSION

The study on the role of Human Resource Practices in the

manufacturing industry has given us an exposure to the practical
applications of the HRM concepts. It has helped us in
understanding the importance of HR Practices in an
organization. The maintenance of the valuable assets, the human
resource is a tedious task that involves a lot of industriousness,
dedication, presence of mind and people skills.

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[2010]

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7. www.google.com
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[2010]

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