MADURA FASHION & LIFESTYLE

SUMMER INTERNSHIP PROJECT REPORT

1st July, 2012

Submitted By: Surbhi Gupta UH11052 PGDM HRM II XIMB

Acknowledgement

I take this opportunity to thank Madura Fashion & Lifestyle (MFL) for providing me an opportunity work there for two months as a Summer Trainee. The two months spent here provided me with lots of learning experiences which otherwise would not have been possible. The internship provided me a great platform to put theory into practice. I thank my mentor Mrs. Sirisha Bhamidipati for all the guidance and motivation which paved way for the success of the projects. Her expert guidance and support helped me a lot in successful completion of the projects. I thank Mr. Paras Kaushik, Retail Head, for his guidance. I also thank the entire team, the employees and other summer trainees who made my stay at MFL a fruitful one. I would like to thank my college XIMB, for providing me a wonderful opportunity to work with one of the most coveted organizations.

Surbhi Gupta XIMB

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Table of Contents
Executive Summary....................................................................................................................................... 5 1. Project 1: Workforce Planning Automation .......................................................................................... 6 1.1 Introduction ........................................................................................................................................ 6 1.2 Conceptual Framework ....................................................................................................................... 6 1.3 Process Diagram................................................................................................................................ 10 1.4 User Guide ........................................................................................................................................ 11 1.5 Conclusion and Suggestions .............................................................................................................. 14 2. Project 2: Designing a Shift Roster .......................................................................................................... 15 2.1 Introduction ...................................................................................................................................... 15 2.2 Sources .............................................................................................................................................. 15 2.3 Challenges ......................................................................................................................................... 20 2.4 Proposed Model Shift Roster ......................................................................................................... 20 2.5 Conclusion and Suggestions .............................................................................................................. 23 3. Other Projects ..................................................................................................................................... 24 3.1 3.2 4. 5. CTC (Cost to Company) Module .................................................................................................. 24 Transfer Module ......................................................................................................................... 25

Conclusion ........................................................................................................................................... 27 Key Learnings ...................................................................................................................................... 27

Glossary ....................................................................................................................................................... 28 Appendix ..................................................................................................................................................... 29

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List of Figures
Figure 1 : Methodology ................................................................................................................................. 7 Figure 2 : Process Diagram .......................................................................................................................... 10 Figure 3 - Screen 1: HRIS - Sampoorna .......................................................... Error! Bookmark not defined. Figure 4 : Norm Screen for WFP Module .................................................................................................... 11 Figure 5 : WFP generation screen ............................................................................................................... 12 Figure 6 : Store Visit Analysis ...................................................................................................................... 19 Figure 7 : Shift Design: Cyclic Process ......................................................................................................... 21 Figure 8 : Shift Roster .................................................................................................................................. 22 Figure 9 : CTC Module ................................................................................................................................. 24 Figure 10: Transfer Module Process Flow................................................................................................... 25

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Executive Summary
Madura Fashion & Lifestyle, a division of Aditya Birla Nuvo Ltd, is one of Indias fastest growing branded apparel companies and a premium lifestyle player in the retail sector. The companys brand portfolio includes product lines that range from affordable and mass-market to luxurious, high-end style and cater to every age group, from children and youth to men and women. Madura Fashion & Lifestyle is defined by its brands Louis Philippe(LP), Van Heusen (VH), Allen Solly (AS), Peter England(PE) and People that personify style, attitude, luxury and comfort. The first project is on Workforce Planning Automation in HRIS. This module helped in having a control on excess hiring thus enabling the organization to have the right number of staff in all the stores. This helped in optimizing the cost as well. The second project focused on designing a shift roster for the store employees. This will help in regulating the working hours of the employees as per the labor laws and store operating procedures. Other projects emphasized on improvisation of the HRIS to ensure smooth execution of all the processes. Various small modules like CTC automation, Transfer Process, help files, user interface etc help in saving time and effort enabling smooth execution of HR processes.

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1. Project 1: Workforce Planning Automation

1.1 Introduction
Design & Develop Workforce Planning (WFP) Module on Sampoorna Study Existing WFP Model - Workforce projection & planning for the retail channel Alignment with Recruitment Module

* Workforce defined as the main selling staff in store CCA and Sr. CCA

1.2 Conceptual Framework

Data required / Input: From SAP database : o Sales o Number of bills o Store Area (Sq. ft.) o Store code o Periodicity of data : scheduler to update data on a daily basis Budgeted Data : 3 months data to be used for calculation From Sampoorna o Existing manpower details HR input/Admin input o Norms Area , Sales Value , Number of Bills 6|Page

o o

Percentage Weightage for each norm Minimum Staff requirement

Figure 1 : Methodology

Process Logic: Step1: Data is taken from SAP / budgeted data and input is provided to HRIS database. Step2: Parameters for calculation of workforce required are put in the user interface. These parameters include the norms such as Area, Sales Value, Number of Bills and minimum staff requirement. Step3: The user can select the Brand and channel for which the workforce planning report needs to be generated. The report can also be filtered on the basis of Store Code. Step4: Calculate the manpower requirement (count) using the workforce planning calculator as per the norms of Area, Value and Volume Step5: Calculate the Variance i.e. excess or inadequate manpower in each store. Step6: Integrate the workforce planning tool with the recruitment module. When the RM raises Job Requisition form (JRF) for manpower requirement in a particular store, 7|Page

i. ii.

iii. iv.

Validation: variance will be verified in the system. In case of excess manpower, system will not allow the RM to raise the JRF for that store. Message will be displayed JRF cannot be raised as the store has adequate manpower. In case of inadequate manpower, he should be able to raise the JRF. In case of Recruitment in Progress For e.g. suppose in a particular store, available manpower is 5 and 1 recruitment is in the pipeline and the Optimal number for that store is 6. The system will throw him an error message showing that Recruitment is in progress for n number of CCA/Sr. CCA for the JRF number.

Workforce Planning Calculation: The norms and their weightages are defined brand wise and channel wise, as mentioned in the table below: Brand AS Channel EBO Norms Area (Sq. ft.) Value (Rs. Lacs ) Volume Minimum Staff Area (Sq. ft.) Value (Rs. Lacs ) Volume Minimum Staff Area (Sq. ft.) Value (Rs. Lacs ) Volume Minimum Staff Area (Sq. ft.) Value (Rs. Lacs ) Volume Minimum Staff Area (Sq. ft.) Value (Rs. Lacs ) Volume Minimum Staff Area (Sq. ft.) Value of Norms 295.83 4.00 164.36 2 388.58 5.25 407.97 2 251.56 4.54 137.02 3 338.69 2.81 163.05 2 455.99 3.79 280.21 3 321.89 Weightage (%) 20% 40% 40% NA 20% 40% 40% NA 20% 40% 40% NA 20% 40% 40% NA 30% 35% 35% NA 20% 8|Page

ES

EBO

LP

EBO

PE

EBO

PF

EBO

VH

EBO

Value (Rs. Lacs ) Volume Minimum Staff

4.84 153.25 3

40% 40% NA

Example: Calculation Logic Store Details: Area (Sq. Ft.) 2281 Value (Rs. Lacs per month) 42 Volume (No. of bills per month) 1140

Norms: Area Norm Value Norm Volume Norm 450 5.336 150

Workforce Count: Formulae Count Area Area of Store = -----------------------Area Norm Sales Value ( Rs. Lakh per month) = ----------------------------------------Value Norm Number of bills ( per month ) = ----------------------------------------Volume Norm = 2281/450 Count = 5.07

Count Value

= 42 / 5.336

= 7.87

Count Volume

= 1140 / 150

= 7.61

Weightage: Area 20% Value 40% Volume 40%

Selling staff Count

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= (Count Area * Area Weightage) + (Count Value * Value Weightage) + (Count Volume * Volume Weightage) = (5.07 * 20 %) + (7.87 * 40%) + (7.61 * 40%) = 7.20 Output: o WFP Report o Linkage with Recruitment Module *Offline decision: Options to Redeploy or Retrench excess manpower Exceptional cases: Flag will be there where JRFs can be raised for exceptional cases.

1.3 Process Diagram

Figure 2 : Process Diagram

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1.4 User Guide

Screen 1 : HRIS Screen 2: Norm Screen
Steps:
1) Select Brand and channel from the Drop down 2) The Parameters for each brand will be: a. Number of Bills b. Sales Volume c. Store Area d. Number of Staff 3) Input the value corresponding to each parameter. These values will be the Norms which have been decided for each brand. Input the Values and Weightage for each brand. 4) If the parameter is to be considered for WFP calculation, Select Consider as Yes else No. 5) Input remarks, if any

Figure 3 : Norm Screen for WFP Module

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Screen 3: WFP generation Screen

Steps: 1) 2) 3) 4) 5) 6) Select the Brand Select the year for which you want to see the manpower Select the calendar month Select the Store if you want to filter the results Generate will generate the WFP report as per the current values in the system Get Details will display the report generated in the system
Figure 4 : WFP generation screen

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1.5 Conclusion and Suggestions

The benefits of automating workforce planning on HRIS are: Optimizing Cost Right Number of Staff in the stores Currently there is no check on the Recruitment module and n numbers of Job Requisition forms are being raised. Now: The Output Screen will enable us to figure the existing manpower Control manpower hiring through JRF Screen

In future this module can be extended to incorporate the following functionalities: Temporary Staffing: As of now we are not considering the temporary staff recruited by the stores during peak and festive seasons. In future, we can include the functionality to allow hiring for temporary staff through the Workforce Planning Module. Graduate Retail Intern Program (GRIP) * Norms can be changed in the future as per the brands

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2. Project 2: Designing a Shift Roster

2.1 Introduction
The purpose of this project is to address the following issues: How do we follow the Shops & Establishment Act without increasing the head count at the various stores? If we follow the Shops & Establishment Act, do we need an additional staff? Can we design a Shift Roster for the same which can be implemented in stores throughout India?

2.2 Sources
1) Shops & Establishment Act (Karnataka)
The following clauses of the Shops & Establishment Act (Karnataka) applicable for this project: Daily and weekly hours o No employee in any establishment shall be required or allowed to work for more than nine hours on any day and forty-eight hours in any week. Over time shall not exceed 10 hours in any day except day of stock-taking and preparation of accounts Total number of overtime hours does not exceed 50 hours in a period of 3 continuous months.

Extra wages for overtime work o Where an employee works in any establishment for more than 9 hours in any day or for more than 48 hours in any week, for such overtime work he is entitled to wages at twice the rate of normal wages.

Interval for Rest o The periods of work of an employee in an establishment each day shall be so fixed that no period shall exceed five hours and that no such person shall work for more than five hours before he has had an interval of rest at least one hour. 15 | P a g e

Period of work o means the time during which an employee is at the disposal of the employer

Spread over o The periods of work of an employee in an establishment shall be so fixed that, inclusive of his interval of rest, they shall not spread over more than 12 hours in any day

Wages definition (Payment of Wages Act) o "wages" means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes--

(a) Any remuneration payable under any award or settlement between the parties or order of a Court; (b) Any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period; (c) Any additional remuneration payable under the terms of employment (whether called a bonus or by any other name); (d) Any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made; (e) Any sum to which the person employed is entitled under any scheme framed under any law for the time being in force; but does not include-(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court; (2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government;

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(3) Any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon; (4) Any travelling allowance or the value of any travelling concession; (5) Any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or (6) Any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).]

2) Store Standard Operating Procedures

Store Opening & Closing : o The store will be opened and closed by: o o Store Staff Security Guard (if available)

The store opening should be done 45- 30 minutes before the customer timings The person who has closed the store previous night should be avoided to depute as store opening executive. Staff is not allowed to enter the store premises more than 30 minutes before their due time (unless they have prior written approval from the store manager for the same) The women CCAs should be relieved before 8:00/8:30 PM on all days as per the local regulations. In the event of any delay, the paid conveyance should be provided. Breaks: The employees shall be entitled for breaks as per the local S&E act and labor law. A minimum number of staff has to be maintained on the floor to take care of the customer traffic. Each Store staff will work for not more than 6 days in a week and will get a day off.

3) Existing Scenario/Trend
Store Timings o 11:00 AM to 10:30 PM , or 11:30 AM to 11:00 PM

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Total : 11.5 hours everyday

9:30 AM to 9:30 PM , or 9:30 AM to 10:00 PM Total : 12/12.5 hours everyday

Assumptions o o Peak hours are the evening hours Store timings are more or less same for all the stores i.e. high street , mall & geographical locations

Store Visit
a. Stores Covered i. Bangalore: Commercial Street (C.S.) AS, LP , VH 1. Store timings 9:30 am to 9:30 pm / 10:00 pm ii. Bangalore: Indira nagar LP , VH , PF Grande iii. Bangalore: Kormangala LP b. Key Findings i. Stores are following a shift/duty roster designed by SM/ASM ii. All have shift timings , weekly offs , lunch timings etc. decided by SM/ASM iii. They are managing the staff as per the peak hours and give them breaks accordingly iv. 60-70% staff availability is maintained at a time in the store Data Analysis: AS (C.S.) Store Staff = 5 ( 4 CCA + 1SM) o o o Morning Shift - 9.30 am - 8.00 pm Afternoon Shift- 11.30 am to close General Shift - 10.30 am to 9.30 pm

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Current Scenario : Lunch 45 min (Weekdays) , 30 min (Weekends) and Tea 10 min Possible break: Lunch 1hr : 1pm to 4 pm , Tea break 11 to 11:30 and 4:30 to 5pm , Snacks : 6:30 to 8:30pm

VH (C.S.) Store Staff = 7 ( 6 CCA + 1SM) Following one shift: They make sure 3+ staff is there at a time in the store 7:30 to 8 , no customers , so break can be given at that time Possible break timings: o o o Half an hour tea break between 12 noon to 1 pm 1 hour lunch break between 1:30 to 4:30 pm Half an hour tea/snack break between 5:30 pm to 6:30/7 pm

Graphical Analysis
Figure 5 : Store Visit Analysis

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2.3 Challenges
Recording of break timings not done o How to capture total number of working hours of a CCA o The present method is manual and data can be manipulated easily Biometric / Punching machines to be used for attendance recording

The shifts may vary from store to store depending on the trend and peaknon peak hours of a particular location

Shifts are easier to implement This can be left to the discretion of SM/ASM o Project briefing and store count is done in the morning They prefer closing shift to start early so that all the staff can be briefed by the SM/ASM.

o o

Half an hour break is too long during peak hours When Staff is less (e.g. <4), two hr break is difficult

2.4 Proposed Model Shift Roster

Rules: Keeping in mind the Standard store operating procedures and the Shops & Establishment Act, and after analyzing the store visit data, the rules that can be framed before designing a shift roster are:
o Shift A person has to come at 10:30 am, if the store timings are 11am, so the shift timings are set accordingly 2 Store employees to be there at opening and closing time with* N>4 CCA, given weekly off during weekdays only, except during exceptional cases where they might get an off on weekends There should be at least 2 store employees in each store during peak hours Women CCAs should be allocated morning or afternoon shifts only. The person who has closed the store previous night should be avoided to depute as store opening executive:

o o

o o o

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If the person had a C shift the previous day, he cannot be allocated A shift the next day

*N= No. of employees at store including SM

Shift Roster There can be three shifts for the store staff: Timings Shift A Shift B Shift C Opening Shift General Shift Closing Shift 10:30 am to 8:30 pm 12:30 pm to 10:00 pm 1:30 pm to 10:30 pm 8WH + 1.5Hrs Break 8WH + 1Hr Break Duration 8WH + 2Hrs Break

Cyclic Process:

Store Timings: 11:00 AM to 10:30 PM WO: Weekly off WH : Working hours Day 1 to Day 5 : Weekdays Day 6 and Day 7 : Weekends

After n weeks: SMs schedule will be replaced by CCA 4s schedule or CCA 2s schedule will be replaced by CCA 1s schedule and so on. n can be left at the discretion on SM/ASM.This cycle will continue every n week.
Figure 6 : Shift Design: Cyclic Process

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SM CCA 4 CCA 1

CCA 3

CCA 2

Case: 5 Store Employees (1SM + 4 CCA)

In case there are 5 employees in the store, the shift roster can be as follows:

Possible changes in the Roster: o o o Weekdays : No B shift required ( At the discretion of the SM/ASM ) Weekends : Introduce 1 B shift ( At the discretion of the SM/ASM ) On Friday: Can replace 1 A shift by B shift as on Friday requirement of CCA in the evening is more than in the morning.
Figure 7 : Shift Roster

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2.5 Conclusion and Suggestions

We can follow the Shops & Establishment Act without increasing the head count at the various stores. If we follow the Shops & Establishment Act, we do not need an additional staff. We can design a Shift Roster for the same which can implemented in stores throughout India. o The break timings in the Roster can be customized as per the store requirements ( i.e. peak / non-peak hours ) The 3 shifts can be decided by the SM/ASM as per the store requirements.

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3. Other Projects
3.1 CTC (Cost to Company) Module
The aim of the project is too automate the process of CTC calculation in HRIS. Currently all the components are calculated in an excel sheet and then manually input in the system. Through this process, all the components of CTC will be calculated by the system.
Figure 8 : CTC Module

The steps for calculating CTC are: Step 1: Select the Grade of the employee Step 2: Input the fixed CTC per annum Step 3: Calculate the basic salary and other allowances using the formulae. Formulae Table S.No. Name 1 2 3 4 Fixed CTC per month Basic Salary per month Supplementary Allowance HRA Formula Minimum Value check NA 6600 NA

Fixed CTC per annum / 12 35% of Fixed CTC per month Fixed CTC(Basic+HRA+Conv+food+med+lta+pf+grat) 50% of Basic NA

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5 6 7 8 9 10 11 12

Conveyance Food G_cash Medical Reimbursement LTA PF Gratuity Fixed Component

800 1100 Basic + Supplementary Allowance + HRA + Conveyance 833 Basic/12 12% of Basic 4.81 % of Basic G_cash+Medical reimbursement+LTA+PF+Gratuity

Fixed Fixed 16500 Fixed as per grade NA NA NA NA

Step 4: Display all the components of the salary in the report.

3.2 Transfer Module

Transfer (Movement of Talent) Policy implementation in HRIS Sampoorna
Figure 9: Transfer Module Process Flow

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The steps for moving and transferring retail employees from one store to another are: Step 1:
ARM raises a transfer request (TR) for transfer of an employee. ARM will be able to raise the Transfer request only after considering information about all existing requirements at various locations (Workforce Planning Model). The multi line will have the field to input the number of transfers required. (Similar to number of vacancies in JRF). The system will check the manpower requirement at that store for which transfer request has been raised. It will match the number of transfers for that particular Transfer request form with the Workforce Planning output. If the store already has optimal manpower, ARM will get the Message The store already has adequate manpower of n SM/ASM/CCA/Sr.CCA, and he will not be allowed to raise TR.

Step 2: The transfer request goes to the RM for approval. The RM will approve or deny the request.
Window Period: 5 working days A reminder mail will be sent to the RM on the 4th working day after which the Transfer request will be closed in the system.

Step 3: After being approved by the RM it goes to the Regional HR.

Window Period: 5 working days

Step 4: Then it goes to Sirisha (National HR Ops head) for Authorization.

Window Period: 2 working days If it is not authorized within 2 working days, system should auto authorize the transfer request.

Step 5: After authorization, Regional HR will process the transfer. The transfer letters will be released
and sent to Corporate MIS Executive, the candidate and the ARMs.

Step 6: Close the transfer request.

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4. Conclusion
The first project focused on Workforce Planning Automation in HRIS. This module helped in having a control on excess hiring thus enabling the organization to have the right number of staff in all the stores. This helped in optimizing the cost as well. This module had been successfully implemented in the HRIS and linked with the recruitment module. The second project focused on designing a shift roster for the store employees. This will help in regulating the working hours of the employees as per the labor laws and store operating procedures. Other projects emphasized on improvisation of the HRIS to ensure smooth execution of all the processes. Various small modules like CTC automation, Transfer Process, help files, user interface etc help in saving time and effort enabling smooth execution of HR processes.

5. Key Learnings
It has been a great learning experience working in the retail industry and understanding the business processes. The key Learnings can be listed below: Retail HR Operations Workforce Planning Model Recruitment management for Retail Apparel / Retail Industry Store Operations HR Information Systems Employee Life Cycle Processes Application of IT Solutions to improve HR process execution Policy drafting Labor Law Compliance

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Glossary
The abbreviations used in the report are: 1. HRIS : Human Resource Information System 2. WFP : Workforce Planning 3. ARM : Area Retail Manager 4. RM: Regional Manager 5. SM : Store Manager 6. ASM : Assistant Store Manager 7. CCA : Customer Care Associate 8. Sr. CCA : Senior Customer Care Associate 9. AS : Allen Solly 10. PE : Peter England 11. VH : Van Heusen 12. LP : Louis Philippe

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Appendix

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