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 management system. 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 management function that helps managers to recruit, select, train and develop members for an organization. Obviously HR is concerned with the peoples dimensions in organizations. HR refers to set of programs, functions, and activities designed and carried out.

Project Study Introduction to POORNATA

POORNATA is a Group wide People Soft HRMS 8.9 implementation project. This project was started in May 2005 with the functional and technical training; it was implemented in 18 months from the start date. The purpose of this project is to implement HR policies through a system driven program, to achieve organizational objectives. POORNATA is implemented across 78 domestic units and 26 units overseas. It covers all management cadre employees across the group and all employees for transports, approximately 1600 employees

Objectives :

Poornata automates and standardizes HR processes across the group for all management

cadre employees.

Poornata introduces best- in- class HR processes throughout the group.

Poornata gives employees access to data which was hitherto available only to the HR

department and thus enables them to plan their own development.

Poornata also gives managers access to information about their direct reports and thus

enables managers to plan the development of their direct reports more proactively.

Scope of POORNATA
Modules included in POORNATA are: Recruitment Workforce Administration Position Management Compensation Performance Management System Enterprise Learning Solution Talent Management

Significance of POORNATA

1. Employees

Empowers employees by making development self driven.

Creates career opportunities for employees by enabling knowledge sharing of likely vacancies and jobs amongst varied businesses.

2. Business
Delivers faster services. More- database decision-making. Put Line Managers in control of People and development

3. Group Takes the group to a league of Global Organizations with cutting edge HR-ERP

operational that enables seamless delivery of common HR processes a diversified multiplication group.

Builds employer brand.

4. HR Department Enables faster service delivery. Facilitates continuous improvement. Builds a more professional image. Makes HR department more data driven.

The online Human Resource Management System at HINDALCO is called as POORNATA. This on- line Performance Management system enables the group to proactively manage their performance appraisal .The module delivers maximum business benefit by helping an employee and manager to set goals and track them on an ongoing basis.

The Performance Management business process includes the following basic steps-

1. Identification of goals for the next year.

2. Review of performance against goals set for current year.

This guide is both a reference tool for use in your day- to- day role and also a training manual. It is a common appraisal process, an automated, system driven; goal focused and standardized process across the group. Mainly the performance management of HINDALCO is done by online system includes the following basic processes

Annual goal setting Midyear review Annual performance review

Performance

Management Process in POORNATA by Employee

The goal setting process starts with defining the job purpose, the KRAs and then the goal is finally set. Goals include the job description, start and end dates, measurement criteria of the goal, giving weight ages to each goal, stating the progress status of the goal (initially not started status). The second process is the midyear review, the HR department will notify to start the midyear reviews, the goal status (in progress/ complete, percentage achieved will be updated by the employee. The last process is the Annual performance appraisal, here no updates are made to the job purpose and KRAs, only the goal status is updated (100% achieved, complete status). The employee gives his comments stating all the facilitating and hindering factors in achieving the goals, after which employee gives rating to each goal on a 5 point rating scale5- Far exceeds expectation 4- Exceeds expectation 3- Meets expectation

2- below expectation 1- Far below expectation

After the goal rating is completed, a goal summary is given by the employee; midyear review Comment is given by the employee. Next the employee rates the values (commitment, Seamlessness, integrity, speed, passion) with the following rating scale* Needs improvement ** Meets standards *** Strength The next step involves training The next step involves training need identification i.e. the training employee needs in the coming year and the career aspirations (short term as well as long term) are identified.

The performance management process in POORNATA by manager:

Now the Manager reviews the goals set by the employee, midyear performance status and Annual performance appraisal of the employee is reviewed and appraised. The manager reviews the job purpose, KRAs and goals along with weights, after receiving an offline e-mail from HR administrator to initiate half yearly assessment; manager will reopen the performance document and will review the current status of the completion of each goal. Annual Performance review is done by the manager. The manager will review the document of employee by logging in to the POONATA portal. The employee will be evaluated by the manager by rating the employees performance against each goal by selecting a r ating from the 5 point rating scale and by rating employees performance against each value by selecting a rating from the scale.

Training needs and career aspirations will be identified by the manager. By clicking on the calculator icon, the overall rating will be available to the manager. Manager will then forward the document to the HR department for further processing. The HR department gets a renormalized report which has a rating to be given to the employee. In case the rating finalized by the moderation committee is different as compared to the one given by the manager, the HR department would deny the document. The renormalization process has 3 people involved the HR administrator, Top management level employee and department Head. The renormalization process is based on

How the manufacturing industry has performed How the company has performed How the unit has performed How the department has performed How the functional unit has performed.

When there is a new employee the HR department conducts induction program for employee self service and manager self service to access POORNATA and refresher training program is conducted by the department 15 days prior to the appraisal process in the organization.

180-DEGREE-PERFORMANCE APPRAISAL:
180 Degree a method of measuring performance appraisal of an employee. As we have already discussed about performance appraisal in the previous blog, its quite clear that its a method of measuring and giving feedback of any employee performance. 180 Degree is one of the method by which feedback of an employee can be judged and

measured. Here two people are involved in the feedback process; one is the employee himself and his immediate boss. The employee share his work experiences including good and bad with the hr people, and the boss gives the feedback of the skills and attitude the employee carry. And then the data collected is matched with the competency norms of the organization and a feedback is prepared about that particular employee. And with this feedback the management takes s further actions for better performance of that employee. This performance appraisal form is used in all big and small scale industries and organization.

Various Modules in POORNATA

1. Personal Information:
Employee self service- employee self service is used by the employees to view and update their own information in POORNATA. Information pertaining to Name, address, marital status, education, honours and awards, languages, licenses, memberships, email-id , phone numbers, emergency contacts. There are 3 kinds of processes to update information through employee self service.

Process without approval or notification

Employee updates a. Phone number b .Email address c .Emergency contact number Database updated

This updating of information does not need the approval of HR administrator.

Process with HR notification Employee updates a. Education b. Honors& awards c. Languages d. Licenses& certificates e. Memberships Database updated

Supervisor notified

HR administrator notified

Process with HR approval

Employee updates

a. Name
b. Address c. Marital status

HR to approve

Database updated

Employee notified

Name- employee submits a name change request online, he/she must provide sufficient proof to the concerned HR manager to get an approval like, marriage certificate, divorce certificate. Manager self service- the e-Profile manager desktop in POORNATA is a web based application that allows the managers to view personal and job related data of all the employees to them. The manager can view the details of the employees reporting to them with the help of manager self service. Following details can be viewed by a manager using manager self service Name, address, marital status, education, honors& awards, languages, licenses, membership, email ID, phone numbers, emergency contacts.

Manager selects the employee whose data he/she Wishes to see

Manager clicks the hyperlinks view the data

on to

2. Recruiting:
LIMITATIONS OF THE STUDY
The study performed encompasses following limitations:

The sampling does not include all the divisions of HINDALCO INDUSTRIES LTD. As the survey was conducted online, no personal interview was taken. Due to the non respondents few aspects of the research analysis got defeated.

Lack of time. Lack of respondents. Lack of enough supportive secondary data. Data collection without primary data (no questionnaires).

SUGGESTIONS

According to my observation following suggestions should be taken into consideration:

Gap Analysis- Training needs are given by the employees online, once the identification

is done and training is imparted to the employees, some feedback about the training is to be taken from the manager and the respective employee. Feedback in terms of whether the program met the objective, did it make value addition to the knowledge of the employee and its application in the present job should be undertaken. Thus the gap between training need identification and imparting of training should be analyzed. Quarterly performance reviews should be undertaken for short term goals. Some employees are not satisfied with the updates given by the HR department related

to their case, while assessing the online performance appraisal system. Thus proper feedback should be given to the employees to further increase the effectiveness of the system.

Training need identification should be done half-yearly, so that it helps the employees in

improving the performance in the remaining time period.

CONCLUSION

From the above data it can be observed that the online performance management system at HINDALCO INDUSTRIES LTD is extremely effective.

In PMS all the factors facilitating and hindering performance are taken into consideration while appraising the performance of employees. In Performance management goal setting, mentoring, coaching and evaluating performance has been carried out successfully and effectively because of online performance management system (POORNATA).

Employees are satisfied with the online performance management system and the coverage given to various factors of performance appraisal.

BIBLIOGRAPHY

Mamoria.C.B., Gankar.S.V.- Personnel Management, Himalaya publishing house, Mumbai, 1980

Yoder, Dale, Personnel Management and Industrial Relations, Prentice Hall of India, New Delhi, 1975

Gautam.v.1988. Comparative Manpower Practices, National Publishing House, New Delhi

Sahu, R.K., Performance Management System, New Delhi, Excel Books, 2007 Kothari, C.R., Research Methodology, New Delhi, New Age International (P) Ltd. www.adityabirla.com/the_group/heritage.htm www.adityabirla.com/the_group/corp_hrcell.htm www.adityabirla.com/the_group/corporate_cells.htm

ANNEXURE 1 Process of Performance management system

Section-1 JOB PURPOSE Description: Ensure achievement of both sales & credit targets, optimizing of resources. Develop/ harmonize team operations of plant / marketing for achieving customer satisfaction & maximum output. Focus on future commercial / dedicated expansions. Section 2 KRA KRA No.1 SALES & MARKET SHARE Description: To achieve the Sales Targets as per Budget with increase in market share. KRA No.2 CREDIT CONTROL Description: Reduction of critical o/s, reducing no. of days. KRA No.3 OPTIMIZATION OF RESOURCES Description: Optimizing Manpower resources to generate maximum output. KRA No.4 CUSTOMER SATISFACTION Description: Ensuring customer satisfaction KRA No.5 MARKET EXPANSION Description: Market expansion for commercial & dedicated plants. KRA No.6- STATUTORY COMPLIANCES

Description: Ensuring operation of plants with all legal compliances.

Section-3- EMPLOYEE GOALS Goal 1: Supports KRA No.1, Weight: 20% Description: To achieve the Sales Targets as per Budget.

 Measurement: Actual sales achieved every month compared with targeted volumes. Comments: As against budgeted volume of 49920 u.m achieved 47177 cu.m, loss due to strike. Rating: Exceeds-110-117%

Goal 2: Supports KRA No.1, Weight: 5% Description: Achieve & retain market share as per sales target. Measurement: To be monitored monthly via-a-vis budget. Comments: Market share improved from last year 19% to this year 23% despite construction industry showing trends of slow down.

Rating: Far exceeds Expectation>120%

Goal 3: Supports KRA No.2, Weight: 10% Description: Credit control Measurement: Monitor the same every month for number of days & reduction in critical. Outstanding as compared to the budget. Comments: Critical outstanding reduced from 179 lacs to 156 lacs. All major accounts reconciled. Rating: Exceeds Expectation>120%

Goal 4: Supports KRA No.3, Weight: 20% Description: Optimizing manpower resources, maximizing output for pumps/plant. Measurement: Availability w.r.t. the sanctioned manpower & Training for maximum; output & harmonious operations etc.

 Comments: Harmonius operation was ensure by timely requirement & in house training. Rating: Exceeds>110-117%

Goal 5: Supports KRA No.4. , Weight: 10% Description: Ensure Customer Satisfaction Measurement: Feedback from Customers. Comments: Mobile testing facility started at Bangalore. Feedback from customers obtained & periodically analyzed. Rating: Far Exceeds Expectation>120%

Goal 6: Supports KRA No.5. , Weight: 10% Description: Market expansion for commercial & dedicated plants. Measurement: As per expansion plans based on market potential. Comments: Market expansion in Manglore and Mysore achieved within two months of commercial production achieved market share of 25%. Rating: Far Exceeds Expectation>120%

Goal 7: Supports KRA No.6. , Weight: 15% Description: Ensure operation of plants with all legal compliances. Safety norms followed in all plants. Measurement: 100% statutory compliance. No. Of safety trainings imparted to staff & workers. Comments: Training programs/Demos conducted in all plants.

Rating: Far Exceeds Expectation>120%

Section 4 EMPLOYEE MID YEAR REVIEW COMMENTS Description: To achieve sales target as per budget: Against budgeted target of 282000 cu.m achieved 263000 cu.m. Shortfall mainly due to 18 days of strike by sand suppliers. Achieve & Retain market share: Market share of 22% achieved. Improvement of 3% on YOY basis. Credit Control: No. of days o/s reduced from 38days to 27days. Optimization of Resources: within 2 months of operation. Ensure customer satisfaction: Mobile concrete Training facility introduced. Market Expansion through dedicated plants: 1captive plant started & successfully running. Ensuring legal compliances: All legal compliances are met. Major Challenges: Creating differentiation in product & services to enhance brand premium.

Managers COMMENTS Sales target impacted due to 18 days strike, otherwise would have achieved. BLK project plant, a good initiative. Cr control has significantly improved but still more needs to be done & focused into. New products to be pushed & new plants have been well established.

Section 5- VALUES Values Commitment Passion Seamlessness Speed

Section 6- EMPLOYEE COMMENTS

Section 7- TRAINING NEEDS

Section 8- CAREER ASPIRATION

ANNEXURE 2
EXIT INTERVIEW FORM NAME:__________________________ DEPARTMENT:______________________ _ DESIGNATION:______________________ _ RELEASE DATE:____________________ DATE OF JOINING: _______________ QUALIFICATION:_________________ _ DATE OF RESIGNATION:__________ BASIC SALARY: Rs.____________PM

1) Please select any three factors, in order of rank, that were associated with your decision to leave the organization (i.e. number one reason should be should be as ranked 1st and so on) Pull Reason Increased Responsibility Career Higher Emolument / Position Higher Education Health Grounds Internal Recruitment Behavior of Superiors Family Consideration Social Life/Work life Balance Education of Children Township / Medical Facility Work Culture and Rank Pull Reason Job Content Rank

2) Weather you would like to rejoin our Group in future? Yes/No If Yes, at what stage?

3) Would you recommend our company to your friends / relative for building their carrier with us? Yes/No 4) Any Suggestion Date: Signature

ANNEXURE 3
EMPLOYEE REFERRAL APPLICATION FORM (RMC DIVISION)

E Code No: Employee Name: Department: Location: Contact Details: Position Referred For: Location: Referred Candidates Name: I hereby declare that I know the above candidate personally/professionally and he is willing to join RMC business of ABG if found suitable and offer given to him as per his satisfaction.

Signature of the Employee Date:

Signature of HR

ANNEXURE- 4
TRANSFER REQUEST FORM NAME TRANSFEREE POSITION DESIGNATION / JOB BAND EMPLOYEE CODE PRESENT LOCATION PRESENT DEPARTMENT PRESENT SUPERIOR (NAME & POSITION) FUNCTIONAL HEAD LOCATION TRANSFER NEW POSITION NEW DEPARTMENT DATE OF TRANSFER NEW (NAME & POSITION) NEW HEAD FUNCTIONAL SUPERIOR ON OF

NEW ZONE Zonal / Functional Head (Transferor) Zonal / Functional Head (Transferee)