Beruflich Dokumente
Kultur Dokumente
PROJECT REPORT ON
Benchmarking HR practices (focused on gender diversity)
For the Partial Fulfillment of the course in Post-Graduation and Diploma in Human Resource
Under the Guidance of
Ms. Ashu Singhal (HR-GBP)
Submitted on
25
th
May, 2012
Submitted by
Praptasha (UH11031)
XAVIER INSTITUTE OF MANAGEMENT, BHUBANESWAR
ACKNOWLEDGEMENT:
Preparing a project of this nature is an arduous task and I am fortunate enough to get support
from a large number of people to whom I will always remain grateful.
I would like to express our gratitude to Ms. Ashu Singhal (HR-GBP) for allowing me to undertake
this project. I would like to take this opportunity to thank my alumni mentor Mr.Akshay Pratap
Singh Deo of AMEC Antural resources for the guidance and support to complete the project.
Last but not the least I would like to thank my friends and other colleagues in the organization
for the valuable advice, guidance, precious time and support offered.
CONTENTS:
Introduction-------------------------------------------------------------------------------------------------- 1
Benchmarking------------------------------------------------------------------------------------------------ 5
Definition
Purpose of benchmarking
Navigating HR Benchmarking--------------------------------------------------------------------------- 8
Benchmarking model
Difference between benchmarking and best practices
Benchmarking HR Practices at IndiGo--------------------------------------------------------------- 13
Setting of objective
Collection of data
Practices at IndiGo
Some of the best practices across industries
Conclusion-------------------------------------------------------------------------------------------------- 23
INTRODUCTION:
AVIATION: The Indian Chapter
The aviation industry in India has been growing exponentially over the past few years with the
new reforms being introduces by the government. The Indian Civil Aviation industry took its
first steps in the early 1930s when Tatas established Tata airlines. In 1953 the Government
chose to nationalize private carriers and set up Indian Airlines to serve domestic market and Air
India to serve international market. These carriers enjoyed a monopoly till 1990-91 when the
open sky policy was implemented. With the repeal for Air Corporation Act several private
players were allowed to operate commercial airlines and a new chapter in the history of Indian
Aviation began. In 2003, more reforms were introduced in the aviation sector like an increase in
the FDI limit to 49% from 40%, and a reduction of excise duty on aviation turbine fuel to 8%
from 16%. The policy reforms and a favorable business environment attracted several more
private players who were set-up to operate under a low cost model.
INTERGLOBES INITIATION:
IndiGo is a privately owned low-cost domestic airline based in Gurgaon with Indira Gandhi
International Airport as its main base. IndiGo Airlines started operations on 4th August 2006
and is owned by InterGlobe Enterprises and Mr. Rakesh Gangwal. InterGlobe holds 51.12%
stake in IndiGo and 48% is held by Caelum Investments, a Virginia, US based firm, run by Rakesh
Gangwal.
IndiGo placed a firm order of 100 Airbus A320-200 aircraft during June 2005 in plans to
commence operations in mid-2006. Former US Airways Executive vice-President and Marketing
and Planning Bruce Ashby joined IndiGo as its Chief Executive Officer. The airline already
acquired parking lots for its brand new aircraft at both Mumbai and Delhi airports. By the time
they announced the first flight, they have already scheduled their first 20 aircraft.
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IndiGo took delivery of its first Airbus A320-200 aircraft on 28 July 2006, nearly one year after
placing the order, and commenced operations on 4 August 2006 with a service from New Delhi
to Imphal via Guwahati. By the end of 2006, the airline had six aircraft. Nine more aircraft were
acquired in 2007 taking the total to 15. By December 2010, IndiGo replaced the state run flag
carrier AirIndia as the top third airline in India. It already had a 17.3% of the market share,
behind Kingfisher Airlines and Jet Airways
PRESENT STANDING:
India is expected to be amongst the top five nations in the world in the next 10 years in the
aviation sector. On the sidelines of the International Civil Aviation Negotiation (ICAN)
Conference, Ms Pratibha Patel, President of India highlighted that currently, India is the 9th
largest civil aviation market in the world. "Recent estimates suggest that domestic air traffic will
touch 160-180 million passengers a year, in the next 10 years and the international traffic will
exceed 80 million passengers a year," added Ms Patil.
The market share of Indian carriers as on April 2012 in the domestic aviation market is shown
below:
Airline/ Company % share
Jet airways (including Jet 28.2
lite)
IndiGo 23.8
Air India 17.6
SpiceJet 17.7
Kingfisher 5.4
GoAir 7.3
In a time when the airline industry is tagged to be the most volatile industry, an IndiGo airline is
the only company in India that is making profit (` 650 crores). Experts say that IndiGos strict
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and constant business model is solely responsible for the progress. The key factors of the
business model of IndiGo are:
A single passenger class
Single type of airplane to reduce training and service cost
No frills such as free food or drinks
Emphasis on direct sale of the ticket through internet to avoid fee and commissions paid
to travel agents
Employees working in multiple roles
Unbundling of ancillary charges to make the headline fare lower
IndiGo aims to minimise cost, time and tension during travel. The airline was awarded Best
Low-Fare Carrier in India for the year 2007 by the Air Passengers Association of India (APAI).
IndiGo connects all the major cities in India and even some of the remote ones. The airline
currently operates 120 daily flights with a fleet of 19 brand new Airbus A320 aircrafts and flies
to 17 destinations. These destinations include Agartala, Ahmedabad, Bangalore, Bhubaneswar,
Chennai, Delhi, Goa, Guwahati, Hyderabad, Imphal, Jaipur, Kochi, Kolkata, Mumbai, Nagpur,
Pune and Vadodara.
IndiGo operates as a subsidiary of Interglobe Enterprises Limited. The company has redefined
airline quality standards by using Airbus A320-232s, having 19 such aircrafts in its possession
already; and dishes out thoroughly professional customer service.
It has the highest technical dispatch (99.91%) since its launch. It is the first domestic low-cost
airline to have CAT III compliant pilots. Several industry first initiatives like web check-in, mobile
bookings, queue busters, step less boarding ramps and air-conditioned tarmac coaches. It has
an on-time performance of 86.8% (as of April, 2012).
The organization adapts to InterGlobes values Integrity, Customer Orientation, Future-
mindedness
IndiGo has received numerous accolades, some of them being:
Best LCC by the Airline Passengers Association of India (2007).
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Best LCC at the Galileo Express Travel Awards (2008).
CNBC Awaaz's Travel Award for best low cost airline (2009).
Safety Excellence Award by Rajiv Gandhi International Airport (2009)
Most Admired Travel Product of the Year 2009 by SATTE (2010)
Best Domestic Low Cost Service Airline for the Year 2010 by Travel Agents Association of
India (TAAI) (2010)
Safety Excellence Award by BIAL (2010)
Skytrax Central Asia's best low cost airline award (2011)
IndiGo awarded the The Best TV Campaign at Budgie and Travel awards, Singapore.
Rahul Bhatia, awarded The entrepreneur of the Year for the year 2011 by Ernst &
Young.
IndiGo awarded the Best Airline- Economy (Domestic) at the Lonely Planet Magazine
India Awards, 2012
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BENCHMARKING:
DEFINITION:
"Benchmarking is a process for identifying and importing best practices to improve
performance." Benchmarking is not a simple comparative study, simply copying practices from
other organizations, or simply assessing performance.
The International Personnel Management Association and the National Association of State
Personnel Executives jointly developed the following definition for benchmarking: A
comparison of similar processes across public and private organizations to identify best
practices to improve organizational performance. The characteristics and attributes of
benchmarking include measuring performance, systematically identifying best practices,
learning from leading organizations, and adapting best practices as appropriate.
Benchmarking essentially involves learning, sharing information and adopting best practices to
bring about changes in performance. To simplify this, it can be stated as:
'Improving ourselves by learning from others'
In practice, benchmarking usually encompasses:
regularly comparing aspects of performance (functions or processes) with best
practitioners;
identifying gaps in performance;
seeking fresh approaches to bring about improvements in performance;
following through with implementing improvements; and
following up by monitoring progress and reviewing the benefits.
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Alan Flower (1997) lists 5 main stages in effective benchmarking:
Selecting aspects of performance that can be improved and defining them in a way that
enables relevant comparative data to be obtained - in effect, producing performance
indicators that will make sense to other organizations;
Choosing relevant organizations from which to obtain raw or headline data;
Studying the data to identify possible opportunities for improvement;
Examining the procedures of the best-performing organizations to pick up ideas that can
be adopted or adapted to achieve performance improvements; and
Implementing new processes.
Organizations usually benchmark performance indicators (e.g. profit margins, return on
investment (ROI), cycle times, percentage defects, sales per employee, cost per unit) or
business processes (e.g. how it develops a product or service, how it meets customer orders or
responds to enquiries, how it produces a product or service). For human resources, three types
of benchmarks are particularly appropriate (Matters, 1993).
Broad measures of performance which take an organization-level view of HR
management, using broad productivity measures like sales per employee, profit per
employee, volume per employee, number of employees per HR specialists, and other
relevant "output-over-input" ratios;
HR practices focusing on how effectively HR programs and practices are implemented,
and making comparisons with other organizations; and
HR competencies tracking the knowledge, skills and abilities
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PURPOSE OF BENCHMARKING:
Have an experienced HR Consultant 24/7- just a phone call away.
Establish solid HR Systems.
Ensure compliance with Federal and State Employment laws.
Get difficult, focused HR projects done accurately and quickly.
Maintain HR Systems on an ongoing basis.
Recommend systems and establish a timeline for project.
Establish workers compensation reporting, drug testing procedures, and establish
working relationship with company doctor or clinic.
Assist with staffing the company as needed.
Provide assistance with interviewing, reference checking, and benefits sign-up and initial
orientation of new employees.
Provide ongoing Human Resource support as needed and requested either on-site or
off-site.
Train an on-site administrative person to handle day to day Human Resource tasks such
as monthly benefits administration, etc.
Set up personnel files and recordkeeping systems such as Personnel Action Request
Forms, Performance Review systems, job descriptions, etc.
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NAVIGATING HR BENCHMARKING:
BENCHMARKING MODEL:
Benchmarking is the search for industry best practice which leads to superior performance. The
pioneer of competitive benchmarking was the American company, Xerox Corporation. The
company demonstrated the usefulness of observing and learning from superior performers by
benchmarking their competitor. Through the knowledge they gained they managed to
dramatically improve their productivity and significantly reduce their cost of production.
We can deduce a standard benchmarking model:
THE BENCHMARKING PROCESS
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Phase One: Planning
Step 1: Select what areas need reconsideration or improvement hence, would need to be
benchmarked.
Step 2: Define how the benchmarking should take place and how do you plan to go forth with
the process.
Step 3: Identify potential partners for benchmarking (if you plan to outsource or involve a third
party for facilitating the process).
Step 4: Identify what are the sources you want to refer to while carrying on with the process.
Phase two: Analysis
Step 5: Collect data and select the parameters chosen to go forward with the process. If an
organization has up to date personnel/payroll systems it should be able to measure a range of
HR practices and outputs relatively easily. Valuable information may also be available through
personnel records, surveys or even interviews.
Step 6: Determine what gaps exist in the current trends of the company. Determine the current
level of performance. This will enable the gap in performance to be identified.
Step 7: Establish process differences with respect to the data you have collected so far from
different sources.
Step 8: Target future performance. Develop a vision for future operation based on the
benchmarking findings. Focus should be directed on the quality of best practice
procedures/practices and how these can be not just emulated, but improved upon by the
organization.
Phase three : Action
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Step 9: Communicate your decision to your employees. Report the progress to all employees on
an ongoing basis. Communication and feedback are crucial components of benchmarking.
Step 10: Establish functional goals linked to the overall vision for the organization. Reestablish
the goals that were already set, realign with the new standards.
Step 11: Implementing the thought process and practicing it is the next challenge. Develop
action plans and implement the best practice findings. This should be the responsibility of the
people who actually perform the work. Periodic measurement and assessment of achievements
should be put into place.
Step 12: Review and calibrate. Update knowledge on current work practices. This is, in essence,
the crux of continuous quality improvement.
Reviewing and recycling on a constant basis will make sure that the model is effective.
Hence, the basic steps of benchmarking can be generalized as:
1. Decide what process to benchmark.
2. Study the process in your own organization.
3. Identify benchmarking partners.
4. Analyze the processes of benchmarking partners to identify differences that account
for superior performance.
5. Adapt and implement "best practices."
6. Monitor and revise.
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DIFFERENCE BETWEEN BENCHMARKING AND BEST PRACTICES
Benchmarking is the continuous process that allows one to identify potential best practices, i.e.
by identifying the best performers; one knows where to look for practices that might improve
their own performance. However, there are different types of benchmarking and some
organizations engage in benchmarking in order to identify performance targets for their own
organizations rather than to look for practices that make other organizations so successful.
A best practice is not simply a new idea, but rather a Best Practice is one that meets the
following seven criteria:
1. Successful over Time: A best practice must have a proven track record.
2. Quantifiable results: The success of a best practice must be quantifiable.
3. Innovative: A program or practice should be recognized by its peers as being creative or
innovative.
4. Recognized positive outcome: If quantifiable results are limited, a best practice may be
recognized through other positive indicators.
5. Repeatable: A best practice should be replicable with modifications. it should establish a
clear road map, describing how the practice evolved and what benefits are likely to accrue to
others who adopt the practice.
6. Has local importance: Best practices are salient to the organization searching for
improvement. The topic, program, process, or issue does not need to be identical to the
importing organization, however.
7. Not linked to unique demographics: A best practice may have evolved as a result of unique
demographics, but it should be transferable, with modifications, to organizations where those
demographics do not necessarily exist.
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Even after all the benchmarking is done senior management support, useful and available
technology, cultural practices that encourage learning and ample amount of resources are
necessary to make sure that the process is functional and effective.
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BENCHMARKING HR PRACTICES AT INDIGO:
SETTING AN OBJECTIVE:
HR practices are my choice of benchmarking for Indigo. I choose this du tot the numerous
advantages such as:
Affirmative Action Plans.
HR Policy and Procedures Manuals.
Employee Handbooks.
Interviewing Guides and Training.
Human Resource Department Audits.
General on-site and off-site Human Resource Support.
Organizational development.
Teambuilding.
Performance Review Systems.
Attitude Surveys.
Wage & Salary Surveys.
Supervisory Training.
COLLECTION OF DATA:
PRIMARY DATA: Primary data helps in validation of the knowledge gathered from secondary
data. Primary Data are those, which are collected afresh and for the first time. The methods
adopted for it are as under:
Observation Method
Questionnaire
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SECONDARY DATA: Secondary data provides the knowledge about the topic of the research
and the company in terms of facts and figures. Secondary data are those, which are collected
through someone else, and users can obtain from websites, books, magazines, and articles in
newspapers.
The data used in this report is mostly secondary in nature.
PRACTICES AT INDIGO:
When we attribute the success to any company, we are indirectly appreciating the efficiency
with which the most important assets of the organization are managed. Keeping in mind the
highly volatile nature of the aviation sector, let us see what IndiGo does differently to be the
only profitable airline in India.
HR POLICIES: An overview at IndiGo
Recruitment and selection: They have a transparent recruitment system. It can be
broadly divided into airport staff (NB: their primary line of employment) and support
staffs. The acquisition team handles both the profiles. Very few out of these profiles
especially in the airport staff profiles are outsourced; otherwise the candidates undergo
several rounds of interviews (starting from HR round
Vertical interview
HOD
interview
VP interview