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A Project Report On Human Resource Policies At GRASIM INDUSTRY.

Submitted in the Partial Fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION March- 2011 Under Supervision Of:Ms. Darshna Banker Submitted by:Sunil Kumar Roll No.:105029 MBA 2th Sem.

CONTENTS

1 2 3 4 5 6

SIGNIFICANCEOF THE STUDY REVIEW OF EXISTNG LITRATURE CONCEPTLIZATION FOCUS OF THE PROBLEM OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY Research Design. Sample Size. Data Collection. Analysis pattern FINDING AND CONCLUSON SUGGESTIONS LIMITATION OF STUDY ORGANISATION OF THE STUDY

7 8 9 10

11. ANNEXURES: BIBLIOGRAPHY QUESTIONNAIRES

Acknowledgement

It is a good learning experience while learning in Grasim Industry. Working here has given me exposure and chance to study review of HR policies adopted by the Company. Observe different departmental function. Which will be great addition to my professional growth? Prior to formal presentation of my project, I wish to acknowledge the support, assistance and co-operation given to me by the personnel at WCTM (GURGAON)words are not sufficient to express my gratitude towards my project guide Miss Darshna Banker., without help & Constant scholarly guidance this project could have not been successful. There are also special thanks to all the respondents who gave their precious time & Valuable suggestion during my practical survey.

Preface

Project work is conducted as an integral part of the management course it provides an opportunity to apply the theoretical aspect in practical it gives on excellent opportunity to a student to apply his ability, capability, intellect, knowledge, brief reasoning and mantle by giving a solution to the assigned problem, which reflects his caliber. One cannot depend upon theoretical knowledge it has to be coupled with practical for it to be faithful, classroom, lecture must be camel abed with the practical training in company, has a significance role play in the subject of business management. To develop managerial and administrative skill. It is necessary that they combine their classroom learning with the knowledge of real business environment. I did my project on Human resource Policies in Grasim Industry in this project I conducted a survey that what are the factors which affectthe companies policies.

Strengths of Indian textile Industry

India has rich resources of raw materials of textile industry. It is

one of the largest producers of cotton in the world and is also rich in resources of fibres like polyester, silk, viscose etc.

India is rich in highly trained manpower. The country has a huge

advantage due to lower wage rates. Because of low labor rates the manufacturing cost in textile automatically comes down to very reasonable rates.

India is highly competitive in spinning sector and has presence in Indian garment industry is very diverse in size, manufacturing

almost all processes of the value chain.

facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or export markets. Weaknesses of Indian textile Industry

Indian textile industry is highly fragmented in industry structure, and is

led by small scale companies. The reservation of production for very small companies that was imposed with the intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry. Smaller companies do not have the fiscal resources to enhance technology or invest in the high-end engineering of processes. Hence they lose in productivity.

Indian labour laws are relatively unfavorable to the trades and there India seriously lacks in trade pact memberships, which leads to

is an urgent need for labour reforms in India.

restricted access to the other major markets.

The outlook for textile industry in India is very optimistic. It is expected that Indian textile industry would continue to grow at an impressive rate. Textile industry is being modernized by an exclusive scheme, which has set aside $5bn for investment in improvisation of machinery. India can also grab opportunities in the export market. The textile industry is anticipated to generate 12mn new jobs in various sectors.

INTRODUCTION OF THE COMPANY


Established in 1947, Grasim Industries Ltd. Has displayed remarkable Business acumen to grow both vertically and horizontally. Grasim has tapped opportunities as a result of our dynamic approach to emerge as a leading industrial giant of our country. Today, Grasim Industries are more than an industrial enterprises, they are a symbol of India;s search for economic and industrial liberalization. The Aditya Birla Group with a turnover of approximately US $ 7.15 million, the group enjoys a pioneer status in numerous industrial disciplines. It tries to faster a simple corporate philosophy that is to achieve perfection and excellence in all spheres. Its traditior is that of innovation, dynamism and experimentation. Research and Development plays a vital role in its vertical and horizontal integrating programs. Human Research Development is an integral part of the corporate policy. The programs aim at motivating and enhancing efficiency at all levels. The search for excellence has made its diversifiers presence flat in various sectors right from clothing to Infrastructure.

History of Company
History of Grasim Bhiwani Textiles Ltd.(Fabric & Farn Division) in 1964, when the Punjab Cotton Mills, now know as Bhiwani Textile Mill, was taken over the Grasim Industries, little was know that another success story was being written. Success at GBTL was not by chance, but by an attitude of accepting challenges. GBTL Manufactures Polyester Viscose blended yarns and fabric. Marketed under the brand name Graviera Suiting, the fabric is amongst the most popular name in the country. The uncompromising quality consciousness has made GBTL worthy of international quality recognition. In 1994, GBTL was awarded the prestigious ISO 9002 certification. Each process, from buying the fibre to the finished fabric, is monitored by computerized machines and highly qualified workers and technicians. Being a composite unit-spinning, weaving and processing is done under one roof and there are stringent quality checks at every stage. In an efforts to have its presence felt in the consumers mind, GBTL frequently organize fabric shows dealers conferences and one-to-one contact with retailers. The annual prestigious Grasim Mr. India contest, is a tribute the Indian Male. The winner represents India at Mr. World contest and the runner-up at the Best Male Model of the World contest.

MAIN UNIT OF GRASIM INDUSTRIES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Viscose staple fibre Harihar Poly Fibre Rayon Grade Caustic Soda Vikram Cement Vikram lron & Steel (Sponge Lron) Grasim Cement Gwalior Suiting Graviera Suiting Elegant Spinners Vikram Ispat Aditya Cement Birla Consultancy & Software Service Birla Telecom LTD. & Brila Communication LTD. Mangalore Refinery & Petrochemical LTD. Vikram Shipping Nagda (M.P.) Kumarpattam (Karnataka) Nagda (M.P.) Jawad (M.P.) Maharashtra Raipur (M.P.) Gwalior (M.P.) Bhiwani (Haryana) Bhiwani (Haryana) Raigarh (M.P.) Shambhura Mumbai Mumbai Mangalore

MISSION OF GRASIM 1. 2. 3. 4. 5. 6. 7. 8. Education for all to secure them a brighter furture. Sustainable Livelihood; through project and education for skill development. Health care and Hygienic living conditions. Family Welfare. Restoring self esteem of the physically handicapped. Empowerment of Woman. Community Development : holistic development of the community including infrastructure. Espousal of social causes.

ADVANTAGES OF GRASIM
Advantages to consumer Advantages to Spinners

Easy of process with excellent productivity and realization. Most Uniform yarn. Shorter sequence leads to saving of power consumables and labour cost.

Advantages to Weaver Good elongation ensures good processing capability. Efficient loom operation. High fabric uniformity.

Advantages to Wet Processor Ease of process. Purified cellulose and hence lower usage of dye stuff chemicals and auxiliaries. Shortened wet processing sequence helping save on power, machinery, labour, water etc. Advantages to customer Softer and cooler on skin leading to comfort. Highly adsorbent due to high moisture regain. Brighter Products in wide range of shades. More uniform fabrics. Cleaner and hygienic.

OBJECTIVES OF THE COMPANY


Objectives establish the goal and the aims of the business and determine the shape of further events. Objectives are the way of achieving motives for profit of

social service. Main Objectives of Grasim Bhiwani Textiles Ltd. as in its memorandum of Association are : Increasing productivity of work force. To introduce new products and create new markets. Customers service and customer satisfaction. Improving work culture among the employees. Capitalizing on company strength and use of corporate assets. Continuous innovation. To provide a growth rate of above 10% p.a. Improve the advertising effectiveness. To ensure that a large proportion of its sales in directed towards the sectors and urban sectors.

MAIN ACHIEVEMENT AND 5S


In 1994 Graviera was awarded the prestigious ISO 9002 certificate. Each

process form buying the fibre to finished fabric is monitored by computerized machine and highly observant works and technicians. Being a composite unit spinning, weaving and processing is done under one roof and there are strongest quality checks at every stage. Again in order to maintain a Superior quality of the product various management practices are being carried out by the top management to give recommendation to improve the effectiveness in selected functional areas has formed management quality circles. Good quality management procedure can prosper only in clean and sincere atmosphere and so the top management at GBTL have implemented the 5s technique which has the following meaning :What is 5s ? There are 5 Japanese words 1. 2. 3. 4. 5. SEIRI SEITOM SEISON SEIKETUS : SEITSUKE : : Shorting out unnecessary items. : : systematically arrangement of necessary items. Cleaning of work place and machines.

House keeping maintaining all time. Project and self discipline.

Selection

Meaning:To choose the right candidate from a pool of applications is called Selection. Selection policy adopted by the company The following weight age will be given in the final evaluation:FACTORS Qualifications Relevance of past experience Interview a) The selected candidates will be notified promptly . b) Candidates not selected will be sent regret letters. c) Candidates who were very poor will be informed regretting the companys inability to find an opening appropriate to their capabilities.
d) Candidates who were very good but not suitable for the position for which

WEIGHTAGE 25% 25% 50%

interviewed will be informed that the selection committee found them good but not suitable for the post for which they were considered and that their application is being kept on the active file and will be in touch should a suitable opening exist in future.

Appointment letters

All candidates found suitable for appointment shall be issued Letter/s of Intent (Employment Offers). Appointment Letters shall be issued under the signature of Authorities as under:CATEGORY Workmen Staff Executives/ Manager AUTHORIZED SIGNATORIES Factory Manager/ General Manager Executive Director/ General Manager Managing Director/ Executive

Director/General Manager Officers Executive Directors/ General manager Following testimonials and documents must be on the candidates file before issuing the Appointment Letter: a) b) c) d) e) f) g) h) i) j) k) medical Fitness Certificate from Companys Doctor. Authentic proof indicating the Date of Birth (School Leaving Certificate). Copies of Certificates of Educational Qualifications. Copies of Certificates of experience from previous employers. Copy of relieving Certificate from the immediate past employer. Companys Application Form duly filled in.. Three passpouts sized colored photographs. Last ESI Membership No. wherever applicable. Last Provident Fund Account No. wherever applicable. Salary/ Income Tax Certificate from the last employer(s) along with PAN No. Antecedent Verification from the Referees/ past Employers indicated by the candidate in his/ her Application Form. Appointment Letters will be prepared on a standard format designed by the HR

Department. Compensation Policy Objective To provide a uniform, stable and reasonable competitive compensation to all the employees of the company.

Compensation- For Staff, Officers and Executives Company policy; Compensation package for above category of employees comprises of Basic Salary and allowances. Procedure For Staff and Officers, there is a well defined guiding scale. a) b) Computation of salaries/ wges for Workers/ staff & Officers Executives/ Managers is dne by the HR Department Statutory obligations like taxes, provident Fund. ESI etc. and other deductions as permissible and payment thereof to the respective authorities is organized by Accounts Department. c) d) Annual revision of Basic salary for the all the employees will be undertaken as per performance Appraisal policy of the company. The company has made arrangement to open individuals salary Account in ING VYSYA Bank where they have been given ATM Cards & their ATM counter is in Factory premises.

HOUSE RENT ALLOWANCES All executives are entitled to House Rent Allowance at the rate of 50% of their basic salary Officers & Staff are paid House Rent Allowance at the rate of their basic salary. OFFICIAL DUTY CONVEYANCE a) All the Executives/ Officers/ Staff using their own vehicle for official work cak claim for reimbursement of conveyance expenses along with authorized official duty slip at the rates given below: i) Scooter/ Motorcycle ii) Car @ 1.80 per kilometer @ 4.20 per kilometer

b) Mode of calculation- Rate X No. of kilometers= claimed amount c) Reimbursement of such Conveyance expenses should preferably be claimed once in a month along with Toll Tax & Parking Fee, if any. Car maintenance All companys Cars are maintained and serviced at authorized service stations/ workshops in different cities at Companys Cost It is the responsibility of the concerned Executive provided with Company Car to maintain it in good, working and road worthy condition. Telephonic Policy

To communicate with their employees at any time company provides the facility of the telephone. By providing this facility company also giving a good communication atmosphere. Some Executives have been provided with Mobile Phones depending upon their assignment subject to monthly linits as per their respective Grade can claim (Mobile phone) bills within the entitlement as given below in proscribed format:-

G.M. and above Sr. manager Manager Officer Other Staff Salary Advance

Rs. 1500/Rs. 1000/Rs. 750/Rs. 500/Rs. 375/- or 325/- as application.

All employees are entitled @ 80% interest free salary advance and it can be recovered in 3-4 equal monthly installments from their salary/ wage. Social Security Policy Gratuity The object of providing a gratuity scheme is to provide retirement benefit to employees who have rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer. Gratuity as paid in sump sum as peer the Payment of Gratuity Act, 1971 and rules framed there under.

Gratuity is payable to an employee on his separation from the services of the company, after he/ she has rendered continuous service for not less than five years:a) On his superannuation; or b) On his retirement or resignation; or c) On his death or disablement due to accident or disease (five years continuous service condition is not applied) For the purpose of calculation of gratuity, the salary last drawn is taken into consideration. Procedure: a) Salary/ Wages X Total days payable under gratuity X 1/26. b) HR Department will calculate the Gratuity amount and inform to Accounts Deparment to release Gratuity payment. c) Gratuity must be paid within 30 days of the last working day of the separating employee subject to fulfillment of the requirements.

Provident Fund All the employees are covered under the Provident Fund Scheme, framed under the Employees Provident Fund and miscellaneous Provisions Act, 1952, those who are getting salary/ wages (Basic + D.A.) up to Rs. 6500/- p.m.

Rate of Contribution:-

12% of salary/ wage from employee and 12% employer (8.33% pension account & 3.67% EPF account). The employer will also pay EDLI Con tribution @ 0.5% & admin charges Pf @ 1.10%, EDLI admin charge 0.01% of the whole bill (Basic + DA). LEAVE POLICY The Executive/ officers and Staff of the Company will be governed by the following types of leave EARNED LEAVE a) All the Executives/ officers and Staff shall be eligible Earned Leave in accordance with the Factories Act.
b) The unveiled EL standing to the credit of an employee as on 31st December

each year may be carried forward and accumulated upon a maximum for 30 day in case of Executives and officers & Staff, beyond which it will encased

EXTRA ORDINARY LEAVE the Company, at its own discretion, will grant extra-ordinary leave with or without pay for prolonged sickness, studies, or for other justified reasons to the employees subject to the condition that he/ she has exhausted all other leave to which he/she is entitled. SICK LEAVE

a)

Employees, who are in service of the company as on 1st January of the financial year; shall be credited with a SL of 7 days to be availed during the subsequent twelve months on account of sickness.

b)

SL for 3 days or more should be supported by a Medical/ fitness Certificate from a Registered Medical Practitioner, who treated/ examined the employee.

c)

A leave application must be submitted immediately on falling sick with a medical Certificate, as it would not be entertained later without sufficient justification.

d)

SL in excess of the accumulation limit will lapse and will not be the subject matter of any compensation.

CASUAL LEAVE An employee who is in service of the company as on 1st January will be eligible to avail of CL for casual purposes for nor more than 7 days in a financial year. CL will not be allowed more than 2 days at a time. SHORT LEAVE All the officers and staff are entitled to short leave of maximum two hours a day for personal work and subject to four hours in a month for which no salary is deducted. MATERNITY LEAVE Maternity Leave shall be as per Maternity Benefits Act, 1961 as amended from time to time. LEAVE ROSTER

The HR Department/ in-charge shall also ensure that too many Executives, Officers and Staff are not on leave at the sane tine in a particular month. LEAVE RULES- WORKERS a) Those workmen who have actually attended duty up to 240 working days in a calendar year will be allowed one days Earned leave fir every 20 days of work performed by them during the calendar year. b) The operating rules regarding granting of privilege Leave, wages for leave period etc. will be governed by the Holiday falling in between Earned Leave days shall not be counted as Leave days. c) Privilege Leave will be enchased on retirement/ resignation/ termination of the following basis:CASUAL LEAVE
a)

All workmen shall be entitled to seven days Casual Leave with wages, during one calendar year from 1st January to 31st December. The principal of earns and avails on pro rata basis shall apply. Casual Leave shall not be granted for more than two days at a time. TRANSFER AND SEPARATION

b)

TRANSFER Services of all the employees are transferable. Employees may be transferred from one Department to another Department from one establishment to another establishment.

Transfers normally take place on account of following reasons: a) b) c) d) e) Vacancies arising out of separation of existing employee Organization Restructuring Reorganization of companys business Closure of an establishment and Other business reasons.

SEPARATION FROM SERVICE An employee may cease to be in the employment of the company for any of the reasons like Resignation, Termination, Retirement, Death, Dismissal etc. SEPARATION PROCEDURE After issuing a formal communication to the separating employee, HR Department / Company Secretary Will along with a copy of the said letter give following details to the Accounts Department i) ii) iii) iv) Leave encashment amount payable of the separating employee Salary/ Wages amount payable of the separating employee Any other recovery/ dues against separating employee Gratuity Application form from the separating employee

SETTLEMENT OF ACCOUNTS: On separation due to any of reasons mentioned above, employees final accounts will be settled only after he/ she has cleared his/ her dues with the company. Following are some of the critical formalities which must be complied within the period specified below:

1. 2. HOLIDAYS

Full and Final Settlement: (Salary + Encashment) Payment of Gratuity: within 30 days of date of leaving.

All the employees of the company are entitled to National and Festival Holidays, as per rules applicable in the October each year, Festival holidays are de. While National Holidays are three in number and are observed on 26th January, 15 August and 2nd October Each year, Festival holidays are declared as per State/ Regional customers and traditions.

SHIFTS There are following types of shifts in the company:SHIFT First Shift General TIMING 8.00 am to 5.00 p.m. 9.00am to 6.00 p.m. CATEGORY Finishing All

Training and Development Training & Development of employees is an essential activity for any organization to ensure its entrepreneurial superiority and excellence in its chose in field. Training & Development focuses on ensuring the timely availability of qualified and motivated employees with requisite skill sets to discharge their existing responsibilities, to take up higher responsibilities and to fill up the Competency gaps by continuously developing their skills and attitudes. The company objectives on Training and Development are: a) b) c) To bridge the skill and competency gaps To create and maintain excellence oriented work environment To develop employees skills so as to successful meet the challenges of competition TRAINING INPUT Training inputs are given as under:a) training for existing employees based on needs and requirements b) Induction training for new entrants c) Training for re- designated/ transferred/ re- located/ promoted employees, keeping in view there new assignment, if required d) Attitude/ management development e) ISO 9001;2000 f) SA 8000. Presentations

All the employees, other then workers, who have attended external training programme, have to give two presentations on the training programme attended by the employees First presentation is held within ten days and second training in the fifth day of the month. Performance appraisal:Objective:-

(a) To provide a platform in which managers discusses the team


members performance in his current role.

(b) Identify training/development needed in order to be effective in the


current role.

(c) Discuss how the team member sees his role over the next one year.

FOCUS OF THE PROBLEM

Main problem in review of hr policies is the lack of cooperation from the employees and the workers. They do not want to give their full contribution/ interest in the research. it is very difficult to manage the manpower planning in the company. Most of the employees are not satisfy with the policies adopted by the company. Due to frequently change in the govt. policies for workers and employees it is very difficult to set the policies in the organization

OBJECTIVES OF THE STUDY

To carry out the study of Grasim Industry, we framed the following objectives 1. Identification of the technique of recruitment and selection. 2. Employer attitude towards the compensation system. 3. Review of the HR Policy in order to 1. Enhance productivity 2. Attain global standards 4. To provide suggestions & recommendations from the study conducted.

RESEARCH METHODOLOGY

RESEARCH DESIGN: Research Design refers to "framework or plan for a study that guides the collection and analysis of data". A typical research design of a company basically tries to resolve the following issues: a) Determining Data Collection Design b) Determining Data Methods c) Determining Data Sources d) Determining Primary Data Collection Methods e) Developing Questionnaires f) Determining Sampling Plan (1) Explorative Research Design: Explorative studies are undertaken with a view to know more about the problem. These studies help in a proper definition of the problem, and development of specific hypothesis is to be tested later by more conclusive research designs. Its basic purpose is to identify factors underlying a problem and to determine which one of them need to be further researched by using rigorous conclusive research designs. (2) Conclusive Research Design: Conclusive Research Studies are more formal in nature and are conducted with a view to eliciting more precise information for purpose of making marketing decisions.

And for our project we use explorative research design. These studies can be either: a) Descriptive or b) Experimental Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive. SAMPLING PLAN: Sample Size = 50 Employees Sample Area = BTM Bhiwani

DATA COLLECTION: Data Sources: (i) (ii) Secondary Data through Internet Primary Data through Questionnaire

DATA PRESENTATION AND ANALYSIS: 1. 2. Questionnaire Bar graphs

FINDINGS & CONCLUSON The most of the employees are satisfy with the policies of the company.. I saw that Most of the employees are not satisfy with the leave policy they demand more leave. Here we can conclude that company mostly uses the 360* Appraisal technique for the performance appraisal of the employees. Here we can interpret ate that the company mostly use to give bonus to its employee as a part of the compensation. The salary of the employees not appropriate According to most of the employees qualification is the most important factor in selection process.

SUGESTIONS
After having analyzed the data, it was observed that practically there was recruitment and selection in the organization. To be an effective tool, it has to be on the continuous basis. This is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding drafting what should be the kind of recruitment and selection the following things should be taken care of: 1. The very concept of recruitment and selection should be standardized through the organization. Unless this is done, it is accepted, be it how important to the organization. 2. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought. 3. Further, at the time of confirmation also, the recruitment and selection form should not lead to faut of any information. Instead, detailed l of the employees work must be done which must incorporates both the work related as well as the other attributes that are important for org. 4. It should be noted that the recruitment and selection form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common recruitment and selection form for every job position in the organization.

LIMITATIONS OF THE STUDY

A few limitations and constraints came in way of conducting the present study, under which the researcher had to work are as follows:

Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity.

Though, no effort was spared to make the study most accurate and useful, the sample Size selected for the same may not be the true representative of the Company, resulting in biased results. This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out

Organization of the Study This study is divided into various chapters. The organization is as follows: Chapter 1 is related to Significance of study. Chapter 2 is related to review of existing literature. Chapter 3 is Conceptualization, which includes Industry Profile, Company Profile, and Introduction of the project. Chapter 4 is related to Focus of Problem. Chapter 5 is related to Objectives Chapter 6 is Research Methodology, which includes Research Design, Universe and Survey Population, Sample Design, Collection of Data and Analysis Pattern. Chapter 7 is finding ad conclusion. Chapter 8 is related to suggestion Chapter 9 is Limitations of Study.

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