RETAIL INDUSTRY

Retail consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys
goods or products in large quantities from manufacturers or importers, either directly or
through a wholesaler, and then sells smaller quantities to the end-user. Retail
establishments are often called shops or stores. Retailers are at the end of the supply
chain. Manufacturing marketers see the process of retailing as a necessary part of their
overall distribution strategy. The term "retailer" is also applied where a service provider
services the needs of a large number of individuals, such as a public utility, like electric
power.
Shops may be on residential streets, shopping streets with few or no houses or in a
shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping
street has a partial or full roof to protect customers from precipitation. Online retailing,
a type of electronic commerce used for business-to-consumer (B2C) transactions and
mail order, are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to
obtain necessities such as food and clothing; sometimes it is done as a recreational
activity. Recreational shopping often involves window shopping (just looking, not
buying) and browsing and does not always result in a purchase.
The Indian retail industry is divided into organized and unorganized sectors. Organised
retailing refers to trading activities undertaken by licensed retailers, that is, those who
are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also privately owned large retail businesses.
Unorganised retailing on the other hand , refers to the traditional formats of low-cost
retailing, for example , the local kirana shops, owner manned general stores, paan/beedi
shops, convenience stores, etc.
Over the past couple decades, there have been sweeping changes in the general retailing
business. What was once strictly a made-to-order market for clothing has changed to a
ready-to-wear market. Flipping through a catalog, picking the color, size and type of
clothing a person wanted to purchase and then waiting to have it sewn and shipped was
standard practice. At the turn of the century some retailers would have a storefront
where people could browse. Meanwhile, new pieces were being sewn or customized in
the back rooms.
In some parts of the world, the retail business is dominated by smaller family-run or

regionally-targeted stores, but this market is increasingly being taken over by billiondollar multinational conglomerates like Wal-Mart and Sears. The larger retailers have
managed to set up huge supply/distribution chains, inventory management systems,
financing pacts and wide scale marketing plans.

Types of retail outlets

A marketplace is a location where goods and services are exchanged. The traditional
market square is a city square where traders set up stalls and buyers browse the
merchandise. This kind of market is very old, and countless such markets are still in
operation around the whole world.
In some parts of the world, the retail business is still dominated by
small family-run stores, but this market is increasingly being taken
over by large retail chains.
Retail is usually classified by type of products as follows:

Food products
Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting
goods, etc.
Soft goods - clothing, apparel, and other fabrics.
There are the following types of retailers by marketing strategy:

Department stores - very large stores offering a huge assortment of "soft" and
"hard goods; often bear a resemblance to a collection of specialty stores. A retailer of
such store carries variety of categories and has broad assortment at average price.
They offer considerable customer service.

Discount stores - tend to offer a wide array of products and services, but they
compete mainly on price offers extensive assortment of merchandise at affordable and
cut-rate prices. Normally retailers sell less fashion-oriented brands.

Supermarkets - sell mostly food products;

Warehouse stores - warehouses that offer low-cost, often high-quantity goods

piled on pallets or steel shelves; warehouse clubs charge a membership fee;

Variety stores or "dollar stores" - these offer extremely low-cost goods, with
limited selection;

Demographic - retailers that aim at one particular segment (e.g., high-end

retailers focusing on wealthy individuals).

Mom-And-Pop (or Kirana Stores as they call them in India): is a retail outlet
that is owned and operated by individuals. The range of products are very selective
and few in numbers. These stores are seen in local community often are family-run
businesses. The square feet area of the store depends on the store holder.

Specialty stores: A typical speciality store gives attention to a particular

category and provides high level of service to the customers. A pet store that
specializes in selling dog food would be regarded as a specialty store. However,
branded stores also come under this format. For example if a customer visits a
Reebok or Gap store then they find just Reebok and Gap products in the respective
stores.

General store - a rural store that supplies the main needs for the local
community;

Convenience stores: is essentially found in residential areas. They provide

limited amount of merchandise at more than average prices with a speedy checkout.
This store is ideal for emergency and immediate purchases.

Hypermarkets: provides variety and huge volumes of exclusive merchandise at

low margins. The operating cost is comparatively less than other retail formats. A
classic example is the Metro in Bangalore.

Supermarkets: is a self service store consisting mainly of grocery and limited

products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing.
The supermarkets can be anywhere between 20,000-40,000 square feet. Example:
SPAR supermarket.

Malls: has a range of retail shops at a single outlet. They endow with products,
food and entertainment under a roof. Example: Sigma mall and Garuda mall in
Bangalore, Express Avenue in Chennai.

Category killers or Category Specialist: By supplying wide assortment in a

single category for lower prices a retailer can "kill" that category for other retailers.
For few categories, such as electronics, the products are displayed at the centre of the
store and sales person will be available to address customer queries and give
suggestions when required. Other retail format stores are forced to reduce the prices if
a category specialist retail store is present in the vicinity. For example: Pai
Electronics store in Bangalore, Tata Croma.

E-tailers: The customer can shop and order through internet and the
merchandise are dropped at the customer's doorstep. Here the retailers use drop

shipping technique. They accept the payment for the product but the customer
receives the product directly from the manufacturer or a wholesaler. This format is
ideal for customers who do not want to travel to retail stores and are interested in
home shopping. However it is important for the customer to be wary about defective
products and non secure credit card transaction. Example: Amazon and Ebay.

Vending Machines: This is an automated piece of equipment wherein customers

can drop in the money in machine and acquire the products. For example: Soft drinks
vending at Bangalore Airport.

Other types of retail store include:

Automated Retail stores are self service, robotic kiosks located in airports, malls
and grocery stores. The stores accept credit cards and are usually open 24/7.
Examples include ZoomShops and Redbox.

Big-box stores encompass larger department, discount, general merchandise,

and warehouse stores.

Convenience store - a small store often with extended hours, stocking everyday
or roadside items;

General store - a store which sells most goods needed, typically in a rural area;
Retailers can opt for a format as each provides different retail mix to its customers
based on their customer demographics, lifestyle and purchase behavior. A good format
will lend a hand to display products well and entice the target customers to spawn sales.

INDIAN RETAIL SCENARIO

Retail has emerged as a booming sector in India, especially after the liberalization of
our economy paving newer avenues by generating potential sources of employment in
different areas of specialization and accelerating the pace of economic progress and
productivity. The business of retail thrives on an integrated approach from every
department aiming at satisfying both the unexpressed and expressed customer needs
which ultimately be multiplying the profitability of the company.
Huge population, increasing per-capita income and changing consumer habits - all these
developments have culminated in the booming of the retail sector in India. The
majority of retail sales take place through the unorganized sector, which is stores that
are popularly known as the kirana, or the mom-and-pop-up stores. The organized
retail sector that constitutes highly organized malls presently does not enjoying any

significant share of the market revenue but it is estimated that future belongs to the
organized retail sector in India.
The retail scenario is one of the fastest growing industries in India over the last
couple of years. India retail sector comprises of organized retail and unorganized
retail sector. Traditionally the retail market in India was largely unorganized; however
with changing consumer preferences, organized retail is gradually becoming popular.
Unorganized retailing consists of small and medium grocery store, medicine stores,
subzi mandi, kirana stores, paan shops etc. More than 90% of retailing in India fall
into the unorganized sector, the organized sector is largely concentrated in big cities.

Key Players in Indian Retail Sector

AV Birla Group has a strong presence in apparel retail and owns renowned
brands like Allen Solly, Louis Phillipe, Trouser Town, Van Heusen and Peter England.

Trent is a subsidiary of the Tata group; it operates lifestyle retail chain, book and
music retail chain, consumer electronic chain etc.

Landmark Group Lifestyle International is their international brand business.

K Raheja Corp Group Segments include books, music and gifts, apparel,
entertainment etc.
Reliance has more than 300 Reliance Fresh stores; they have multiple formats.
Pantaloon Retail has 450 stores across the country. Segments include Food &
grocery, e-tailing, home solutions, consumer electronics, entertainment, shoes, books,
music & gifts, health & beauty care services.

"Between my past, the present and the future, there is one common factor:
Relationship and Trust. This is the foundation of our growth."

Shri Dhirubhai H. Ambani

Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
Board of Directors of Reliance Industries Limited

Shri Mukesh D.
Ambani
Chairman &
Managing Director

Shri Nikhil R.
Meswani
Executive
Director

Shri Hital R.
Meswani
Executive Director

Shri PMS Prasad

Executive Director

Shri P.K.Kapil
Executive
Director

Shri Ramniklal H.
Ambani

Shri Mansingh L.
Bhakta

Shri Yogendra P.
Trivedi

Dr. D. V. Kapur

Shri M. P. Modi

Prof. Ashok Misra

Prof. Dipak C Jain

Dr. Raghunath

RELIANCE INDUSTRIES
Reliance Industries Limited (RIL) is the largest private sector conglomerate company
headquartered at Mumbai, India. The company is being ranked at 264th position in the
Fortune Global 500 and at the 126th position in the Forbes Global 2000 list (2010).
Reliance was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani
has been a pioneer in introducing financial instruments like fully convertible debentures
to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail
investors to the stock markets. Critics allege that the rise of Reliance Industries to the
top slot in terms of market capitalization is largely due to Dhirubhai's ability to
manipulate the levers of a controlled economy to his advantage.
Though the company's petrochemicals, refining, and oil and gas-related operations form
the core of its business, however, other segment of the company includes textile, retail
business, telecommunications and special economic zone (SEZ) development. After
severe differences between the founder's two sons, Mukesh Ambani and Anil Ambani,
the group was divided between them in 2006. In September 2008, Reliance Industries
was the only Indian firm featured in the Forbes's list of "world's 100 most respected
companies". In 2010, it stood at 13th position in the Platts Top 250 Global Energy
Company Rankings.

Products
Reliance Industries Limited has a wide range of products from petroleum products,
petrochemicals, to garments (under the brand name of Vimal), Reliance Retail has
entered into the fresh foods market as Reliance Fresh and launched a non-veg chain
called Delight Reliance Retail and NOVA Chemicals have signed a letter of intent to
make energy-efficient structures.

MAJOR SUBSIDIARIES AND ASSOCIATES

1. Reliance Life Sciences is a research-driven, biotechnology-led, life sciences
organization that participates in medical, plant and industrial biotechnology
opportunities. Specifically, these relate to Biopharmaceuticals, Pharmaceuticals,
Clinical Research Services, Regenerative Medicine, Molecular Medicine, Novel
Therapeutics, Biofuels, Plant Biotechnology and Industrial Biotechnology.
2. Reliance Industrial Infrastructure Limited (RIIL) is engaged in the business of setting
up / operating Industrial Infrastructure that also involves leasing and providing
services connected with computer software and data processing.

3. Reliance Institute of Life Sciences (Rils), established by Dhirubhai Ambani

Foundation, is an institution of higher education in various fields of life sciences and
related technologies.
4. Reliance Logistics (P) Limited is a single window solutions provider for
transportation, distribution, warehousing, logistics, and supply chain needs, supported
by in house state of art telematics and telemetry solutions.
5. Reliance Clinical Research Services (RCRS), a contract research organization (CRO)
and wholly owned subsidiary of Reliance Life Sciences, has been set up to provide
clinical research services to pharmaceutical, biotechnology and medical device
companies.
6. Reliance Solar, The solar energy initiative of Reliance aims to bring solar energy
systems and solutions primarily to remote and rural areas and bring about a
transformation in the quality of life.
7. Relicord is the first and one of the most dependable stem-cell banking services of
South East Asia offered by Mukesh Ambani controlled by Reliance Industries.
8. Infotel Broadband is a broadband service provider, it is wholly owned by RIL.

BOARD COMMITTEES AT RELIANCE

The Board has established the following Committees to assist the Board in discharging
its responsibilities:

Audit Committee

Remuneration Committee

Shareholders'/Investors' Grievance Committee

Finance Committee

Health, Safety and Environment Committee

Corporate Governance and Stakeholders' Interface Committee

Employees Stock Compensation Committee

The Board has adopted charters setting forth the roles and responsibilities of each of the
above Committees as well as qualifications for Committee membership, procedures
for Committee members' appointment and removal, Committee structure and
operations and reporting to the Board. The Board may constitute new Committees or
dissolve any existing Committee, as it deems necessary for the discharge of its
responsibilities.

COMPANYS PROFILE:
RELIANCE INDUSTRIES LIMITED:
The reliance group, founded by Dhirubhai H.Ambani (1932-2002), is Indias largest
private sector enterprise, with businesses in the energy and materials value chain.
Groups annual revenues are in excess of US$34 billion. The flagship company and its
largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of
backward vertical integration in polyester, fiber, intermediaries, plastics,
petrochemicals, petroleum and production-to be fully integrated along the materials and
energy value chain.
The Groups activities span exploration and production of oil and gas, petroleum
refining and marketing, petrochemicals (polyester, fiber, intermediaries, plastics, and
chemicals), textiles, retail, and special economic zones.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn and
fiber producer in the world and among the top five to ten producers in the world in
major petrochemicals products.
The group exports products in excess of US$ 20billion to 108 countries in the world.
Major Group Companies are Reliance Industries limited (including main subsidiaries
Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industries
Infrastructures Limited.

RELIANCE RETAIL:
Growth through Value Creation:
As a wholly owned subsidiary of Reliance Industries. It, RRL is gearing up to
revolutionize the retailing industry in India and is aggressively working on introducing
a pan-India network of retail outlet in multiple formats. A world class shopping
environment, state of art technology, a seamless supply chain infrastructure, a host of
unique value-added service all, unmatched customer experience, is what this is all
about.
Ensuring better returns to Indian farmers and manufacturers and greater value for the
india customer, both in quantity, will be an integral feature of this project. The projest
will boast of a seamless supply chain infrastructure, unprecedented even by world
standards. Through multiple formats and a wide range of categories, Reliance is aiming
to touch almost every Indian customer and supplier.
With a vision to generate inclusive growth and prosperity for farmers, vendor partners,
small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL,
was set up to lead Reliance Groups into organized retail.
With a 27% share of world GDP, retail is a significant contributor to overall economic
activity across the world. Of this organized retailing contributes between 20% to 55%
in various developing markets. The Indian Retail industry is pegged at $300 billion and
growing at over 13% every year. Of this presently, organized retailing is about 5%. This
is expected to grow 10% by 2011. RRL has embarked upon an implementation plan to
build state-of-the art retailer infrastructure in India, which include a multi format store
strategy of opening neighborhood convenience store, hypermarkets, and speciality and
wholesale stores across India.
RRL launched its first store in November 2006 through its convenience store format
Reliance Fresh. Since then RRL has rapidly grown to operate 590 stores across 13
states at the end of FY 2007-08. RRL launched its first Reliance Digital store in April
2007 and its first and Indias largest hypermarket Reliance Mart in Ahmadabad in
august 2007. This year, RRL has also launched its first few specialty stores for apparel
(Reliance Trends), footwears (Reliance Footprints), jewelers (Reliance jewels), Books,

music and other lifestyle products (Reliance Timeout), auto accessories and service
format (Reliance AutoZone) and also an initiative in the health and wellness business
through Reliance Wellness.
In each of these store formats, RRL is offering a unique set of products and services at a
value price point that has not been available so far to the Indian

CORPORATE GOVERNANACE OF RELIANCE

Growth through Governance
Reliance is in the forefront of implementation of Corporate Governance best practices
Corporate Governance at Reliance is based on the following main principles:

Constitution of a Board of Directors of appropriate composition, size, varied

expertise and commitment to discharge its responsibilities and duties.

Ensuring timely flow of information to the Board and its Committees to enable
them to discharge their functions effectively.

Independent verification and safeguarding integrity of the Companys financial

reporting.

A sound system of risk management and internal control.

Timely and balanced disclosure of all material information concerning the
Company to all stakeholders.

Transparency and accountability.

Compliance with all the applicable rules and regulations.

Fair and equitable treatment of all its stakeholders including employees,

customers, shareholders and investors.

RELIANCE RETAIL LIMITED AND COMPETITORS

STORE FORMAT
(CATEGORY)

Malls and
Hypermarkets

Organized Kirana
or Neighborhood
grocery stores
and grocery
supermarkets

Apparels and

RRLS (Reliance
Groups)
VENTURE

RELIANCEMART

RELIANCE
FRESH

COMPETITION

Pantaloons
Retail (47)
Pantaloons
Factory
Outlets (37)
Big Bazaar
(116 stores)
Big Bazaar
Best Deals (3
stores)
Big Bazaar
Express (3
stores)
Star India
Bazaar
Shoppers Stop
(27 stores)
Spencers
Hypermarket
(250 stores)
Food Bazaar
(168 stores)

RELIANCE
SUPER

Food World

RELIANCE
DELIGHT

Trinethra /Birla
Supermarkets
(619 stores)
Brand Factory,
Fashion
Station, Blue

INDUSTRIAL
IST
GROUP/FAMIL
Y

BIYANI GROUP

TATA GROUP
K. RAHEJA
GROUP
RPG (Ram Prasad
Goenka)
GROUP
BIYANI GROUP

RPG (Ram Prasad

Goenka)
GROUP
A.B. BIRLA
GROUP
BIYANI GROUP

fashion
accessories

Consumer
Electronics
Books and Music
stores

Jewels Reliance
Jewels

RELIANCE
TRENDS

RELIANCE
DIGITAL
RELIANCE
TIMEOUT

Sky, Celio,
Central, Lee
Cooper
Trent Westside
(38 stores)
Trent Fashion
Yatra
Croma Retail
(34 stores)
Depot (116
stores)

TATA GROUP

TATA GROUP
BIYANI GROUP

Landmark (10
stores)
Navaras

TATA GROUP

Tanishq
Jewellery

TATA GROUP

BIYANI GROUP

Reliance Jewels

MAJOR MILESTONES
2010

During the year, RIL and BP announced a strategic partnership in the oil and gas
business. This partnership comprises BP taking 30 per cent stake in 23 oil and gas
production sharing contracts that Reliance operates in India, including the KG-D6 block,
and the formation of a joint venture (50:50) for sourcing and marketing gas in India.

During the year, the Company took a significant step by entering into partnerships
in the United States of America with Atlas Energy, Pioneer Natural Resources and Carrizo
Oil & Gas through three distinctive joint venture agreements. It has also entered into a
separate joint venture with Pioneer Natural Resources aimed at addressing the mid-stream
opportunity in gas evacuation and transportation.

During the year, RIL and Russia's SIBUR announced a joint venture for the setting
up of a facility for producing 100,000 tonnes of butyl rubber in India.

During the year, RIL acquired a 95% stake in Infotel Broadband Services Limited,
which emerged as a successful bidder in all the 22 circles of the auction for Broadband

Wireless Access (BWA) spectrum conducted by the Department of Telecommunication,

Government of India. RIL has invested Rs. 4,201.64 crore by way of subscription to
equity capital issued by Infotel Broadband.
2009

RIL joins the league of global deepwater oil and gas operators - RIL commenced
production of hydrocarbons in its KGD6 block in the Krishna Godavari basin with the
production of sweet crude of 420 API. The production of oil in KG-D6 was commissioned
in just over two years of its discovery, making it the worlds fastest green-field deepwater
oil development project.

With the commissioning of the new refinery in its Special Economic Zone (SEZ),
Jamnagar has now become the petroleum hub of the world. With 1.24 Million Barrels Per
Day (MBPD) of nominal crude processing capacity, it is the single largest refining
complex in the world.

RPL merger with RIL: Value creation through scale and synergies - The merger of
Reliance Petroleum Limited (RPL) with Reliance Industries Limited (RIL) has enabled
seamless integration of operational scale and financial synergies that existed between the
two Companies. Assets and liabilities of RPL have been transferred to RIL with effect
from 1st April 2008, as per the approval granted by the Hon. High Courts of Mumbai and
Gujarat. Shareholders of RPL received 1 share of RIL in lieu of every 16 shares of RPL
held by them, as per the scheme of merger. Accordingly, 6.92 crore new equity shares of
RIL have been allotted to the shareholders of RPL.
2008

During the year, Reliance signed an agreement to acquire certain polyester

(capacity) assets of Hualon, Malaysia.

In the Refining & Marketing business, Reliance took over majority control of Gulf
Africa Petroleum Corporation (GAPCO) and started shipping products to the East African
markets.

Reliance also signed MoU with GAIL (India) Limited to explore opportunities of
setting up petrochemical plants in feedstock rich countries outside India.

Reliance Petroleum Limited (RPL) continued the second year of implementation of

its refinery project with an overall project progress of 90%.

During the year, Reliance Retail Limited (RRL) continued its rollout of stores across
various verticals and formats. Reliance Retail today operates over 590 stores in 57 cities,
spanning 13 states, with over 3.5 million square feet of trading space.
2007

Value creation through integration - A landmark merger of Indian Petrochemicals

Corporation Limited (IPCL) with Reliance Industries Ltd. (RIL) has been completed.

Reliance Retail entered the organised retail market in India with the launch of its
convenience store format under the brand name of Reliance Fresh.

The worlds largest polyester expansion project commissioned during the year. We
brought a Polyester capacity of 550 KTA on stream at globally competitive costs in a
record time of eighteen months. With this expansion, our polyester capacity has been
augmented to 2 million tonnes per year. Subsequently, Reliance now have 4% of global
polyester capacity and 6% of global production.

During the year, we expanded our polypropylene (PP) capacity by 280 KTA at
Jamnagar that increased the combined capacity to 1,710 KTA. With this expansion, we
now have 3.5% of global PP capacity and 3.6% of global PP production.
2006

RIL commences the setting up of a new export-oriented refinery through its

subsidiary, Reliance Petroleum Limited (RPL). The refinery will have a total atmospheric
distillation capacity of approximately 580,000 barrels per stream day with a Nelson
Complexity of 14.0 and an integrated polypropylene plant with a capacity of 0.9 Million
TPA. The capital cost of the RPL project is estimated at Rs 27,000 crore (approximately
US$ 6 billion). RPL completes its US$ 1.2 billion Initial Public Offering of equity shares
which received an overwhelming response across different classes of investors.

Reliance's debt ratings from S&P and Moody's pierce India's sovereign ratings.

Reliance becomes India's first private sector enterprise to cross US$2 billion profit
mark.
2005

The Mumbai High Court, shareholders and creditors approve demerger proposal
2004

Reliance Industries Limited (RIL) emerged as the 'Petrochemicals Company of the

Year' at the prestigious sixth annual Platts Global Energy Awards ceremony in New York,
USA

The Board of Directors of Reliance Industries Limited approved the buyback of its
fully paid up equity shares of Rs.10 each, at a price not exceeding Rs 570 per share,
payable in cash, up to an aggregate amount not exceeding Rs 2,999 crore. This amount
represents the limit of 10% of the total paid up equity share capital and free reserves of
the Company as on March 31, 2004.

The European Commission approved the acquisition of the German specialty

polyester manufacturer 'Trevira' by Reliance.

Reliance Industries emerged as the first and only private sector company from India
to feature in the 2004 Fortune Global 500 list of World's Largest Corporations.

Reliance announced it had struck gas off the Orissa Coast in the Bay of Bengal.

RIL became the first private sector company in India to record a net profit of US
dollar of over 1 billion.

Reliance Associate, Sunbright, signed a Memorandum of Understanding (MoU)

with National Organic Chemicals Industries Limited (NOCIL) to take over its
Petrochemicals and Plastics Products Divisions.
2003

Reliance announces Strategic Alliance with Bongaigaon Refinery & Petrochemicals

Ltd. (BRPL) to restart PSF manufacturing at BRPL.

Reliance Infocomm acquires FLAG Telecom, a multinational telecom company

providing bandwidth through its undersea cable network comprising of over 50,000 kms
of undersea fiber optic cable that spans four continents and connects the key regions of
Asia, Europe, Middle East and the USA.

State-of-the-art Research and Technology Centre is inaugurated at Reliance's

Patalganga complex to develop differentiated polyester products.

Reliance strikes oil in an onshore block in Yemen, where it has an equity oil
position.

Reliance's refinery at Jamnagar was ranked best in Shell Benchmarking for the third
consecutive year in 'Energy and Loss' performance from amongst 50 refineries
worldwide.

Reliance dedicates 23rd January as Shareholder's Day on the occasion of 25 years of

the company going public - A story of Relationship and Trust.

BSES, one of the premier utility companies of the country, engaged in the
generation, transmission and distribution of electricity becomes part of the Reliance
Group and Mr. Anil D Ambani is appointed its Chairman.
2002

Reliance Infocomm to launch various telecom services on 28th December beginning with Gujarat, the Infocomm revolution will cover thousands of villages and
hundreds of cities across the country. Reliance Infocomm will become a major catalyst
for changing the face of India and improving the quality of life of Indians.

Reliance announced India's biggest gas discovery in nearly three decades and one of
the largest gas discoveries in the world during 2002. The in place volume of natural gas is
in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels of crude oil. This
is the first ever discovery by an Indian private sector company.

Reliance acquired control of Indian Petrochemicals Corporation Limited (IPCL) India's second largest petrochemicals company.

Reliance signed MOU with DuPont Polyester Technologies to license the

revolutionary resin technology NG-3 from DuPont. Reliance announced its plan for the
expansion of PET capacity by 220,000 tonnes per year.

The merger of Reliance Petroleum Limited with Reliance Industries Limited was
announced - largest ever merger in India - Reliance Industries became the largest private
sector company in India on all major financial parameters including sales, profits, net
worth, assets, and exports.
2001

Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest
companies in terms of all major financial parameters

Dhirubhai Ambani was conferred The Economic Times Award for Corporate
Excellence for Lifetime Achievement
1999-2000

Jamnagar Petrochemicals complex and bulk of integrated refinery complex

commissioned comprising:

World's largest grassroots refinery

India's largest port with capacity of 50 million tpa

World's largest PX Plant of 1.4 million tpa

World's largest PP plant of 0.6 million tpa

Captive power plant of over 300 MW

World-class product handling, storage, and despatch facilities

Reliance started commercial production of 27 million tpa refinery, the 5th largest in
the world
1998

Dhirubhai Ambani was awarded the Dean's Medal by the Wharton School,
University of Pennsylvania, USA, for setting an outstanding example of leadership.

Reliance completed phase-II expansion of Hazira Petrochemicals Complex

including world's largest multifeed cracker, PET plant, MEG plant, PTA plant, PE plant
1996-1997

First corporate in Asia to issue 50 and 100 years bond in US debt market
Reliance became the first private sector company to be rated by international credit
rating agencies. S&P rated BB+, stable outlook, constrained by the Sovereign Ceiling.

Moody's rated Baa3, Investment grade, constrained by the Sovereign Ceilings.

1995

Net profit crossed the Rs 1,000 crore mark (Rs 1,065 crores or US$ 338 million),
unparalleled in the Indian Private sector
1994

Reliance offered the second Euro issue of GDR

1993

Reliance Petroleum Limited public issue - India's largest public offering.

Reliance pioneered the first ever Euro Convertible Bond issue by an Indian
company.
1992

Reliance raised funds by pioneering foray into overseas capital markets with first
ever international GDR offering by an Indian corporate.

Reliance commenced the production of High Density Polyethylene (HDPE) at

Hazira.
1991

Reliance commissioned phase-I of Hazira Petrochemicals Complex - consolidated

its position in polyesters and entered into attractive polymers business - started VCM and
PVC plants.
1988

Reliance started the PX plant at Patalganga

1987

Reliance commenced the Linear Alkyl Benzene (LAB) plant at Patalganga

1986

Reliance started PTA plant at Patalganga.

Reliance commissioned Polyester Staple Fibre (PSF) plant at Patalganga.

1985

Reliance entered phase-II of the Polyester Filament Yarn (PFY) plant at Patalganga.
1982

Reliance launched phase-I of the Polyester Filament Yarn (PFY) plant at Patalganga.
1977

Reliance went public with IPO - Dhirubhai Ambani introduced equity cult in India,
a new model of business leadership from a base of the broadest public shareholding.

CODE OF BUSINESS CONDUCT & ETHICS FOR

DIRECTORS / MANAGEMENT PERSONNEL OF
RELIANCE RETAIL LIMITED.
1 Introduction
The Company is committed to conducting business in accordance with the highest
standards of business ethics and complying with applicable laws, rules and regulations.
The Company believes that a good corporate governance structure would not only encourage
value creation but also provide accountability and control systems commensurate with the
risks involved.

2 Compliance with Applicable Laws

The Company is committed to comply with all applicable laws, rules, regulations and
guidelines in every jurisdiction where it operates.
It is therefore desirable that Directors / Management Personnel possess / acquire appropriate
knowledge of the legal requirements relating to their roles and duties to enable them to be in
compliance thereof and to recognize potential risks.
Directors / Management Personnel shall ensure due compliance for every activity undertaken
under their supervision and authority.
Directors / Management Personnel shall extend full co-operation to regulatory authorities,
and disclose information as may be required.

3 Conflict of Interest
The term "conflict of interest" pertains to situations in which personal financial or other
consideration(s) may compromise, or have the appearance of compromising the professional
judgment of Directors / Management Personnel. A conflict of interest exists where the
interests or benefits of Directors / Management Personnel or of people or entities related to
them conflicts with the interests or benefits of the Company.
Directors / Management Personnel are advised to avoid conducting the Companys business
with a relative, or with a business in which a relative is associated in any significant role.
If there are any transactions proposed with such related parties within the knowledge of
Directors / Management Personnel, they must report the same to the Compliance Officer. If
determined to be material to the company, the transactions shall be placed before the Audit
Committee for review.

4 Conduct of Business Relationships

The Company expects all its business to be conducted in a legal and ethical manner. The
quality of products and the efficiency of services at competitive prices will be the biggest tool
for marketing activities. Profits by no means justify use of unfair / unethical business
practices.

Directors / Management Personnel shall not make any promises or commitments that the
Company does not intend or would not be able to honor. Also, they should not be engaged,
directly or indirectly, in any act, dealing or conduct likely to bring discredit to the Company.
Directors / Management Personnel must uphold the highest standards of integrity and ethics
in every kind of third party dealings. They shall not give, offer, or authorize the offer, directly
or indirectly, of anything of value (tangible or intangible) to any third party to obtain any
improper advantage.
A contribution or entertainment shall not be offered to anyone in the course of business that
might create the appearance of an impropriety. However, some modest and acceptable
corporate gifts etc. appropriate to give in the normal course of business practice may be
acceptable.

5 Protection & Proper Use of Companys Assets & Resources

Directors / Management Personnel shall as far as practicable, protect the Companys assets
from loss, damage, misuse or theft and ensure that the assets are only used for business
purposes and other purposes specifically approved by Management and must never be used
for unauthorized purposes.
Directors / Management Personnel shall not apply the Companys assets / resources and/or
proprietary information for personal benefit and/or for the benefit of any other related party.

6 Intellectual Property
Intellectual Property Rights (IPR) broadly covers patented or potentially patentable
inventions, trademarks, service marks, trade names, copyrightable subject matter, and trade
secrets.
Directors / Management Personnel shall make their best efforts to protect all such Intellectual
Properties related to the Company, as it is critical to the Companys overall success.
It is advisable to highlight and consult the Chairman / Compliance Officer for determining
the appropriate course of action whenever there is lack of clarity and issue of any kind related
to IPR.

7 Privacy & Confidentiality

Confidential information includes all information of the Company not authorized by the
management for public dissemination. This includes information on trade, trade secrets,
confidential and privileged information regarding customers, employees, information
relating to mergers and acquisitions, stock splits and divestitures; non-public information
about discussions and deliberations relating to business issues and decisions, between and
among employees, officers and Directors in formal meetings or otherwise, and will include
all such information which is not available in the public domain at that point of time.
The Company believes that protection of all confidential information is essential and is
committed to protecting business and personal information of confidential nature obtained

from clients, associates and employees. Directors / Management Personnel shall ensure that
no confidential information is disclosed inadvertently or otherwise.
Confidential information shall be disclosed to persons, both internal and external, only on a
need to know basis and public disclosure shall be made with appropriate approval or as
legally mandated.
Directors / Management Personnel shall ensure that all confidential information available to
them by virtue of the office they hold is never directly or indirectly released to any person
or entity, or made public, otherwise than as stated above.

8 Corporate Opportunities
Except as may be approved by the Board of Directors or a Committee thereof, Directors /
Management Personnel are precluded from:
taking for themselves personally, opportunities that belong to either the Company or are
discovered through the use of Companys property, information or position;
using the Companys property, information, or position for personal gain; and
competing with the Company

9 Interaction with Media

To facilitate the achievement of the Companys vision and business plans, it is necessary to
communicate the policies, plans and accomplishments in the most effective manner through
the media to our investors, customers, existing and potential, other stakeholders and to the
community at large.
All statements made to the media on behalf of the Company should be true and fair. Only
persons duly authorized by the Management are allowed to interact with media on specified
subjects. Disclosures of any information other than statutory disclosures or those
specifically authorized by the Management are prohibited.
Disclosure of information on proceedings of board meetings / committee meetings / internal
meetings, and disclosure of forward-looking statements is prohibited. In case any such
disclosure has to be made it has to be approved by the Management and shall be combined
with cautionary statements, wherever required.
Directors / Management Personnel shall not disclose non public information selectively to
any particular group as it may lead to unfair advantage / discrimination.
For any outside publication of books, articles or manuscripts which relate specifically to the
Companys business, policies and processes, Directors / Management Personnel should
take the approval of the Management prior to its release. All such documents should be
supplemented by a statement: All views & observations made/expressed in this
article/presentation are solely that of the authors and the Company is in no way responsible
for the substance, veracity or truthfulness of such views and statements.

10 Fraudulent and Unfair Practices in the Securities Market

The Companys securities are listed on the major Stock Exchanges. The Company is
committed to comply with securities laws in all jurisdictions in which its securities are
listed.
The Company prohibits its Directors / Management Personnel from any fraudulent and unfair
trade practices in the securities market, with regard to the securities of the Company or of
any other company with whom the Company has business dealings to the best of their
knowledge.

11 Fair Dealing
Director / Management Personnel shall not take a discriminatory stance towards or give
unfair advantage to the Company's employees, customers, suppliers, or competitors
through manipulation, concealment, abuse of privileged information, misrepresentation of
material facts, or any other unfair-dealing practice.
No discrimination shall be done on the basis of caste, religion, sex, nationality or disability of
any kind towards any employees, customers, suppliers, or any business partner.

12 Health, Safety & Environment

The Company believes in sustainable development and is committed to be a responsible
corporate citizen.
To uphold the Companys interest and preserve the quality of life of all concerned, the
business and operations of the Company shall be conducted in an environmentally friendly
manner and provide a safe and healthy working environment to its employees.
Directors / Management Personnel shall ensure compliance with all applicable
environmental, safety and health laws and regulations and internal policies.

13 Free & Fair Competition / Antitrust

Most countries have well-developed bodies of law designed to encourage and protect free
and fair competition. The Company is committed to obeying both the letter and spirit of
these laws.
As a general rule, contacts with competitors should be limited to formal forums and should
always avoid casual / careless mention on subjects such as business plans, prices or other
terms and conditions of sale, customers, and suppliers.

14 Reporting of Illegal or Unethical Behavior

The Company shall promote ethical behavior in all its business activities.
Employees are free to report existing/probable violations of laws, rules, regulations or
unethical conduct to their immediate supervisor or such other person as may be

notified by the Management to the workgroups. Such reports received from any
employee will be reviewed by the Corporate Governance and Stakeholders Interface
Committee from time to time.
In accordance with the Companys Whistleblower Policy the Directors / Management
Personnel shall not attempt to suppress/conceal any such view or reporting.
The confidentiality of those reporting violations shall be protected and they shall not be
subjected to any discriminatory practices.

15 Applicability of the Code

This is a comprehensive code and applies to all Directors /Management Personnel.
However, the provisions shall apply to Executive and Non- Executive Directors
including Independent Directors only to such extent as may be applicable depending
on their respective roles and responsibilities.
Directors / Management Personnel shall communicate any suspected violations of the
Code promptly to the Corporate Governance and Stakeholders Interface Committee
or the Chairman of the Board. Suspected violations will be investigated by or at the
direction of the Board or the Corporate Governance and Stakeholders Interface
Committee and appropriate action will be taken in the event that violation is
confirmed.
The Code does not specifically address every potential form of unacceptable conduct,
and it is expected that Directors / Management Personnel will exercise good judgment
in compliance with the principles set out in this Code. Every Director / Management
Personnel has a duty to avoid any circumstances that would violate the letter or spirit
of this Code.
The Compliance Officer, as designated by the Chairman, will be the principal officer
for this Code. He is empowered to report to the Chairman of the Board or the
Corporate Governance and Stakeholders Interface Committee on any matter relating
to the implementation of the Code. The Compliance Officer should be consulted if
there is any doubt or lack of clarity about any aspect in the Code. The Corporate
Governance and Stakeholders Interface Committee or the Chairman of the Board
may also be consulted wherever required.
In case of any doubt, as to the course of action to be taken, the following test may be
applied:
Is it legal?
Is it ethical?
Could it cause a negative perception of the Company?

16 Annual Certification
Every Director / Management Personnel of the Company will be required to certify
compliance with the Code within 15 days of the close of the financial year of the
Company. Such certification shall be in the form provided in the format as follows:
To,
The Compliance Officer,
Reliance Industries Limited.
Sub: Compliance Certificate
I , being a member of the Board of Directors / Management Personnel of
Reliance Industries Limited (the Company) hereby acknowledge,
confirm and certify that:
I have received, read and understood the Code of Business Conduct and
Ethics for Directors / Management Personnel of the Company;
I am bound by the said Code to the extent applicable to my functions as a
member of the Board of Directors / Management Personnel of the
Company;
During the financial year _____________, I have complied with the
provisions of the said Code;

HR COMPONENT IN RELIANCE RETAIL

HR DEPARTMENT

In the competitive business environment of today every organization has to be responsive to

the satisfaction level of its customers. Organizational growth and development also depends
upon its human resources. A responsive organization would like to find out how its
employees feel about their jobs, the organization, and their fit and future within it.
Employees are the internal customers of the company and hence contribute greatly to the
successful running of the organization hence it is incumbent on its part to gauge the
satisfaction level of its workforce.
The human resource department is the most important assets of an organization. The success
or failure of any organization is largely dependent on the caliber of the people working
therein. Without positive and creative contribution from people, organization cannot progress
and prosper. That is why HR department is responsible for the proper growth of any
organization.
HR department in reliance retail have different parts which are operated by different people
and guided by the HR HEAD.
The different parts are:

1. Administration
2. Recruitment and Selection
3. Training and Development
4. HR Operation
5. HR Compliances

1.ADMINISTRATION:
This is the most important function of HR department which take care of :
i.

Attending the guests: The guests for the Reliance Retail Ltd. are those people who come to
attend the meetings, seminars, reward and recognition (R&R) programmes, store visit,
inspection. They come from State Head Quarters (SHQ), National Head Quarter (NHQ),
abroad, or from other cities. HR administration staffs are responsible for attending them from
the airport/railway station.

ii.

Booking of hotel: HR Administration staffs are also responsible for the arrangement of
hotels and to provide comfortable stays to the guests. RRL Ranchi has tie-ups with many
hotels like Golden Tulip, Radisson, Ashoka Hotel, Lee Lac, Hotel BNR, etc.

iii.

Arrangements of Travel: Travel arrangements as per the eligibility and vehicle/travel policy
are also managed by HR Administration team. There is registered vendor travel agency for
RRL Ranchi. Vendors got the vendor code, the vendor bill are claimed to NHQ which is in
Mumbai. The safe & prompt payments are made by the head office.

iv.

Opening up of bank account: The opening up of bank accounts and other bank formalities
like issue of ATM cards, Cheque books are also done by the help of HR Administration team.
RRL employees bank accounts are opened in HDFC and ICICI bank. The updation of salary
account of employees on SAP is one of the major responsibility of the HR Administration
Manager.

v.

Issue of SIM cards: As per the Telephone Policy and eligibility as per grade the cellphone
expenses and issue of SIM cards are the responsibility of HR Administration. RRL has tie
ups with Airtel.

vi.

Arrangement of ESIC camps: Periodic Employee State Insurance Corporation (ESIC)

camps are also organized by the HR Administration for those who has missed the ESIC
registration, if the family status like marriage, birth of new child, etc. are changed..

vii.

Housekeeping and maintenance: The hygienic and cleanliness of the office are taken care of
by the HR Administration team. The drinking water, cleanliness of toilets, office tables,
cafeteria, and other facilities such as stationary materials like paper, notepad, staplers, etc. are
also the responsibilities of the HR Administrations. During the lunch time, the Housekeeping

Staffs are present in the cafeteria to assist the employees by providing clean plates, spoons,
water, etc. The other activities of Housekeeping Staff involve providing tea & coffee to the
employees; to do the photocopy and scanning of the documents as directed by the office
employees. The all housekeeping staffs are reporting to the HR Administration Manager.
viii.

Preparation of budget for Birthdays, farewells, Reward and recognition ceremonies :

birthdays, farewells, other functions comes under the employee/talent engagement activities.
These activities are done to motivate employees. So, the budget are prepared by HR
Administration, the money contribution by other employees and the required arrangements
like collection of money, arrangements for decorations, snacks, venue are done by HR
Administrations.

ix.

Arrangement of Video Conference (VC) : Video Conference (VC) are done when there is a
need of conducting meetings, interviews, etc. between Business heads, State heads, National
heads and any other business related issues. The arrangements and confirmation of Video
Conference (VC) are done by HR Administration team.

x.

Handling of Personal Issues: HR Administrations are also responsible for handling of

personal issues like if anybody has lost his/her ATM card, then with the consult of HR
Administration the ATM cards are reissued. If any employee is new to the place, then if
needed the house arrangements, Doctors address & doctor call-up are also taken care of by
HR Administration team.

xi.

Health awareness and blood donation camps: The health awareness and blood donation
camps are also organized by HR Administration team. The main objective behind these
activities is to aware the communities about the safety and cleanliness, blood donation issues.

2. RECRUITMENT AND SELECTION

This is the next function of HR department which include the recruitment process.
Recruitment is defined as the process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient workforce.
Edwin B. Flippo defined recruitment as the process of searching for prospective employees
and stimulating them to apply for jobs in the organization. Recruitment is a linking
function-joining together those with jobs to fill and those seeking jobs. It is a joining
process in that it tries to bring together job seekers and employer with a view to encourage
the former to apply for a job with the latter.

In order to attract people for the jobs, the organization must communicate the position in
such a way that job seekers respond. To be cost effective, the recruitment process should
attract qualified applicants and provide enough information for unqualified persons to selfselect themselves out.
Thus, the recruitment process begins when new recruits are sought and ends when their
applications are submitted. The result is a pool of applicants from which new employees are
selected.

Purpose and importance:

The general purpose of recruitment is to provide a pool of potentially qualified job
candidates. Specifically the purpose is to:
. Determine the present and future requirements of the organization in conjunction with its
personnel-planning and job-analysis activities.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of the selection process by reducing the number of visibly,
under qualified or overqualified job applicants.
Help to reduce the probability that job applicants, once recruited and selected, will leave the
organization only after a short period of
Begin identifying and preparing potential job applicants who will be appropriate candidates.
Induct outsiders with a new perspective to lead the company.
Infuse fresh blood at all levels of the organization.
Develop an organizational culture that attracts competent people to the company.
Search or head hunt/head pouch people whose skills fit the companys values.
Devise methodologies for assessing psychological traits.
Search for talent globally and not just within the company.
Design entry pay that competes on quality but not on quantum.
Anticipate and find people for positions that do not exist yet.
Increase organizational and individual effectiveness in the short term and long term.

Evaluate the effectiveness of various recruiting techniques and sources for all types of job
applicants.
Recruitment represents the first contact that a company makes with potential employees. It is
through recruitment that many individuals will come to know a company, and eventually
decide whether they wish to work for it. A well-planned and well-managed recruiting effort
will result in high- quality applicants, whereas, a haphazard and piecemeal effort will result
in mediocre one.
The recruitment process should inform qualified individuals about employment
opportunities, create a positive image of the company, provide enough information about the
jobs so that applicants can make comparisons with their qualifications and interests, and
generate enthusiasm among the best candidates so that they will apply for the vacant
positions.
The negative consequences of a poor recruitment process speak volumes about its role in an
organization. The failure to generate an adequate number of reasonably qualified applicants
can prove costly in several ways. It can greatly complicate the selection process and may
result in lowering of selection standards. The poor quality of selection means extra cost on
training and supervision. Furthermore, when recruitment fails to meet the organizational
needs for talent, a typical response is to raise entry-level pay scales. This can distort
traditional wage and salary relationships in the organization, resulting in avoidable
consequences. Thus, the effectiveness of a recruitment process can play a major role in
determining the resources that must be expended on other HR activities and their ultimate
success.

Sub system of recruitment:

The recruitment process is consist of following four sub-function:

Finding out and developing the sources where the required number and kind of employees
will be available.

Developing suitable techniques to attract the desirable candidates

Employing the techniques to attract candidates.

Stimulating as many candidates as possible and asking them to apply for jobs irrespective of
the number of candidates required.
Management has to attract more candidates in order to increase the selection ratio so that the
most suitable candidate can be selected out of the total candidates available.
Recruitment is positive as it aims at increasing the number of applicants and selection is
somewhat negative as it selects the suitable candidates in which process; the unsuitable
candidates are automatically eliminated. Though, the function of recruitment seems to be
easy, a number of factors make performance of recruitment a complex one.

Sources of recruitment:
The sources of recruitment may be broadly divided into two categories: internal sources and
external sources. Both have their own merits and demerits. Lets examine these.

Internal Sources:Persons who are already working in an organization constitute the internal
sources.Retrenched employees, retired employees, dependents of deceased employees may
also constitute the internal sources. Whenever any vacancy arises, someone from within the
organization is upgraded, transferred, promoted or even demoted.

External Sources:
It lie outside an organization. Here the organization can have the services of :
(a) Employees working in other organizations;
(b) Jobs aspirants registered with employment exchanges and job fair.
(c) Students from reputed educational institutions;

(d) Candidates referred by unions, friends, relatives and existing

employees;

(e) Candidates forwarded by search firms and contractors;

(f) Candidates responding to the advertisements, issued by the organization; and
(g) Unsolicited applications/ walk-ins.

Merits and Demerits of Recruiting people from Within

MERITS

DEMERITS

1) Economical: The cost of

1) Limited Choice: The organization

is forced to select candidates from a
limited pool. It
may have to sacrifice quality and
settle down for less qualified
candidates.

recruiting internal candidates is

minimal. No expenses are
incurred on advertising.

2) Suitable: The organization

can pick the right candidates
having the requisite skills. The
candidate can choose a right
vacancy where their talents can
be fully utilized

2) Inbreeding: It discourages entry

for talented people, available
outside an organization. Existing
employees may fail to behave
Innovative ways and inject
necessary dynamism to enterprise
activities.

3) Reliable: The organization

has the knowledge about
suitability of a candidate for a
position.
Known devils are better than
unknown angels!

3) Inefficiency: Promotions based

on length of service rather than
merit, may prove to be a blessing
for inefficient candidate. They do
not work hard and prove their
worth.

Merits and demerits of External sources of recruitment

MERITS
Wide Choice: The organization has
the freedom to select candidates from
a large pool. Persons with requisite
qualifications could be picked up

DEMERITS
Expenses: Hiring costs could go up
substantially. Tapping multifarious
sources of recruitment is not an easy
task either

Infection of fresh blood:People

with special skills and knowledge
could be hired to stir up the existing
employees and pave the way for
innovative ways of working

Time consuming: It takes time to

advertise, screen, to test and test and
to select suitable employees. Where
suitable ones are not available, the
process has to be repeated

Motivational force: It helps in

motivating internal employees to
work hard and compete with external
candidates while seeking career
growth.
Such
a
competitive
atmosphere would help an employee
to work to the best of his abilities

De-motivating: Existing employees

who have put in considerable service
may resist the process of filling up
vacancies from outside. The feeling
that their services have not been
recognized by the organization,
forces then to work with less
enthusiasm and motivation

Methods of recruitment:
The following are the most commonly used methods of recruiting
people. There are two methods for recruitment.
I. Internal methods
II. External methods
I. Internal methods:
1.Promotions and Transfers
This is a method of filling vacancies from within through transfers and
promotions.

A transfer is a lateral movement within the same grade, from one job to another. It may lead
to changes in duties and responsibilities, working conditions, etc., but not necessarily salary.
Promotion, on the other hand, involves movement of employee from a lower level position to
a higher level position accompanied by (usually) changes in duties, responsibilities, status
and value. Organisations generally prepare a central pool of persons from which vacancies
can be filled for manual jobs. Such persons are usually passed on to various departments,
depending on internal requirements. If a person remains on such rolls for 240 days or more,
he gets the status of a permanent employee as per the Industrial Disputes Act and is therefore
entitled to all relevant benefits, including provident fund, gratuity, retrenchment
compensation.
2. Job Posting
Job posting is another way of hiring people from within. In this method, the organisation
publicizes job opening on bulletin boards, electronic method and similar outlets. One of the
important advantages of this method is that it offers a chance to highly qualified applicants
working within the company to look for growth opportunities within the company to look for
growth opportunities within the company without looking for greener pastures outside.
3. Employee Referrals
Employee referral means using personal contacts to locate job opportunities. It is a
recommendation from a current employee regarding a job applicant. The logic behind
employee referral is that it takes one to know one. Employees working in RELIANCE
RETAIL are encouraged to recommend the names of their friends, working in other
organizations for a possible vacancy in the near future. In fact, this has become a popular
way of recruiting people in the highly competitive industry nowadays. Companies offer rich
rewards also to employees whose recommendations are accepted after the routine screening
and examining process is over and job offers extended to the suggested candidates. As a
goodwill gestures, companies also consider the names recommended by unions from time to
time.

II.External (direct) methods:

1.Campus Recruitment
It is a method of recruiting by visiting and participating in college campuses and their
placement centres. Here the recruiters visit reputed educational institutions such as IITs,
IIMs, colleges and universities with a view to pick up job aspirants having requisite technical
or professional skills. Job seekers are provided information about the jobs and the recruiters,
in turn, get a snapshot of job seekers through constant interchange of information with
respective institutions

A preliminary screening is done within the campus and the short listed students are then
subjected to the remainder of the selection process.
Advantages of this method include: the placement centre helps locate applicants and
provides resumes to organizations; applicants can be prescreened; applicants will not have to
be lured away from a current job and lower salary expectations. On the negative front,
campus recruiting means hiring people with little or no work experience.
The organizations will have to offer some kind of training to the applicants, almost
immediately after hiring. It demands careful advance planning, looking into the placement
weeks of various institutions in different parts of the country.
2. Advertisements:These include advertisements in newspapers; trade, professional and technical journals; radio
and television; etc. in recent times, this medium has become just as colourful, lively and
imaginative as consumer advertising. The ads generally give a brief outline of the job
responsibilities, compensation package, prospects in organizations, etc. this method is
appropriate when (a) the organization intends to reach a large target group and (b) the
organizations wants a fairly good number of talented people who are geographically spread
out. To apply for advertised vacancies lets briefly examine the wide variety of alternatives
available to a company - as far as ads are concerned:
3. Newspaper Ads :
Here it is easy to place job ads without much of a lead time. It has flexibility in terms of
information and can conveniently target a specific geographic location. On the negative side,
newspaper ads tend to attract only those who are actively seeking employment at that point
of time, while some of the best candidates who are well paid and challenged by their current
jobs may not be aware of such openings.
4. Television and radio ads:
These ads are more likely to each individual who are not actively seeking employment; they
are more likely to stand out distinctly, they help the organization to target the audience more
selectively and they offer considerable scope for designing ads creatively. However, these ads
are expensive. Also, because the television or radio is simply seen or heard, potential
candidates may have a tough time remembering the details, making application difficult
5.Private Employment Search Firms:As search firm is a private employment agency that maintains computerized lists of qualified
applicants and supplies these to employers willing to hire people from the list for a fee. Firms
like Arthur Anderson, Boble and Hewitt, ABC consultants, SB Billimoria, KPMG; Ferguson
Associates offers specialized employment-related services to corporate houses for a fee,

especially for top and middle level executive vacancies. AT the lower end, a number of
search firms operate providing multifarious services to both recruiters and the recruitees.
6.Employment Exchanges:AS a statutory requirement, companies are also expected to notify (wherever the
Employment Exchanges Act, 1959, applies) their vacancies through the respective
Employment Exchanges, created all over India for helping unemployed youth, displaced
persons, ex-military personnel, physically handicapped, etc. AS per the Act all employers are
supposed to notify the vacancies arising in their establishments form time to time with
certain exemptions to the prescribed employment exchanges before they are filled. The Act
covers all establishments in public sector and nonagricultural establishments employing 25 or
more workers in the private sector.
However, in view of the practical difficulties involved in implementing the provisions of the
Act (such as filing a quarterly return in respect of their staff strength, vacancies and
shortages, returns showing occupational distribution of their employees, etc.) many
organizations have successfully fought court battles when they were asked to pick up
candidates from among those sponsored by the employment exchanges.
7.Hiring and Contractors:Gate hiring (where job seekers, generally blue collar employees, present themselves at the
factory gate and offer their services on a daily basis), hiring through contractors, recruiting
through word-of-mouth publicity are still in use despite the many possibilities for their
misuse in the small scale sector in India.
8.Unsolicited Applicants / Walk-ins:Companies generally receive unsolicited applications from job seekers at various points of
time; the number of such applications depends on economic conditions, the image of the
company and the job seekers perception of the types of jobs that might be available etc.
Such applications are generally kept in a data bank and whenever a suitable vacancy arises,
the company would intimate the candidates to apply through a formal channel. One important
problem with this method is that job seekers generally apply to number of organizations and
when they are actually required by the organizations, either they are already employed in
other organizations or are not simply interested in the position.

Factors affecting recruitment:

The recruitment function of the organisations is affected and governed by a mix of various
internal and external forces.

.The internal factors are the factors that can be controlled by the organisation.

.The external factors are those factors which cannot be controlled by the organisation.
.The internal and external factors affecting recruitment function of an organisation are:
FACTORS AFFECTING RECRUITMENT

The external forces are the forces which cannot be controlled by the organisation. The
major external forces are:
1.Supply and demand:
The availability of manpower both within and outside the organization is an important
determinant in the recruitment process. If the company has a demand for more
professionals and there is limited supply in the market for the professionals demanded by
the company, then the company will have to depend upon internal sources by providing
them special training and development programs.
2.Labour market:
Employment conditions in the community where the organization is located will influence
the recruiting efforts of the organization. If there is surplus of manpower at the time of
recruitment, even informal attempts at the time of recruiting like notice boards display of
the requisition or announcement in the meeting etc will attract more than enough applicants.

3. Image and goodwill:

Image of the employer can work as a potential constraint for recruitment. An organization
with positive image and goodwill as an employer finds it easier to attract and retain
employees than an organization with negative image. Image of a company is based on what
organization does and affected by industry. For example finance was taken up by fresher
MBAs when many finance companies were coming up.
4.

Political and legal environment:

Various government regulations prohibiting discrimination in hiring and employment have
direct impact on recruitment practices. For example, Government of India has introduced
legislation for reservation in employment for scheduled castes, scheduled tribes, physically
handicapped etc. Also, trade unions play important role in recruitment. This restricts
management freedom to select those individuals who it believes would be the best
performers. If the candidate cant meet criteria stipulated by the union but union regulations
can restrict recruitment sources.
5.Unemployment rate:
One of the factors that influence the availability of applicants is the growth of the economy
(whether economy is growing or not and its rate). When the company is not creating new
jobs, there is often oversupply of qualified labour which in turn leads to unemployment.
6.Competetors:
The recruitment policies of the competitors also effect the recruitment function of the
organisations. To face the competition, many a times the organisations have to change their
recruitment policies according to the policies being followed by the competitors.

The internal forces i.e. the factors which can be controlled by the organization are:
1. Recruitment policy
The recruitment policy of an organisation specifies the objectives of recruitment and
provides a framework for implementation of recruitment programme. It may involve
organizational system to be developed for implementing recruitment programmes and
procedures by filling up vacancies with best qualified people.
Factors affecting recruitment policy:
Organizational objectives
Personnel policies of the organization and its competitors.

 Government policies on reservations.

Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications.
2.

Human resource planning

Effective human resource planning helps in determining the gaps present in the
existing manpower of the organization. It also helps in determining the number of
employees to be recruited and what qualification they must possess.

3.

Size of firm
The size of the firm is an important factor in recruitment process. If the organization
is planning to increase its operations and expand its business, it will think of hiring
more personnel, which will handle its operations.

4.

Cost
Recruitment incur cost to the employer, therefore, organizations try to employ that
source of recruitment which will bear a lower cost of recruitment to the organization
for each candidate.

5.

Growth and expansion

Organization will employ or think of employing more personnel if it is expanding its
operations.

Recent Trends in Recruitment

The following trends are being seen in recruitment:
OUTSOURCING
In India, the HR processes are being outsourced from more than a decade now. A
company may draw required personnel from outsourcing firms. The outsourcing firms
help the organisation by the initial screening of the candidates according to the needs of
the organisation and creating a suitable pool of talent for the final selection by the
organisation. Outsourcing firms develop their human resource pool by employing
people for them and make available personnel to various companies as per their needs.
In turn, the outsourcing firms or the intermediaries charge the organisations for their
services.
Advantages of outsourcing are:
1.

Company need not plan for human resources much in advance.

2.

Value creation, operational flexibility and competitive advantage

3.

turning the management's focus to strategic level processes of HRM

4.

Company is
resumes/candidates.

5.

free

from

salary

negotiations,

weeding

the

unsuitable

Company can save a lot of its resources and time

POACHING/RAIDING

Buying talent (rather than developing it) is the latest mantra being followed by the
organisations today. Poaching means employing a competent and experienced person
already working with another reputed company in the same or different industry; the
organisation might be a competitor in the industry. A company can attract talent from
another firm by offering attractive pay packages and other terms and conditions, better
than the current employer of the candidate. But it is seen as an unethical practice and not
openly talked about. Indian software and the retail sector are the sectors facing the most
severe brunt of poaching today. It has become a challenge for human resource managers
to face and tackle poaching, as it weakens the competitive strength of the firm.
E-RECRUITMENT

Many big organizations use Internet as a source of recruitment. E- Recruitment is the use
of technology to assist the recruitment process. They advertise job vacancies through
worldwide web. The job seekers send their applications or curriculum vitae i.e. CV
through e mail using the Internet. Alternatively job seekers place their CVs in worldwide
web, which can be drawn by prospective employee depending upon their requirements.

Steps followed in RELIANCE RETAIL for e-recruitment:

Step1:Go to www.ril.com
Step2:Apply online
Step3:Opportunities in retail
Step4:login
Step5:Candidate profile(personnel data)
Step6:Communication data
Step7:Education data
Step8:Family detail
Step9:Data completeness

Advantages of e-recruitment are:

o

Low cost.

No intermediaries

Reduction in time for recruitment.

Recruitment of right type of people.

Efficiency of recruitment process.

SELECTION
Introduction
The size of the labor market, the image of the company, the place of posting, the nature of
job, the compensation package and a host of other factors influence the manner of
aspirants are likely to respond to the recruiting efforts of the company. Through the
process of recruitment the company tries to locate prospective employees and encourages
them to apply for vacancies at various levels. Recruiting, thus, provides a pool of
applicants for selection.

Definition
To select mean to choose. Selection is the process of picking individuals who have relevant
qualifications to fill jobs in an organization. The basic purpose is to choose the individual
who can most successfully perform the job from the pool of qualified candidates.

Purpose
The purpose of selection is to pick up the most suitable candidate who would meet the
requirements of the job in an organization best, to find out which job applicant will be
successful, if hired. To meet this goal, the company obtains and assesses information
about the applicants in terms of age, qualifications, skills, experience, etc. the needs of the
job are matched with the profile of candidates. The most suitable person is then picked up
after eliminating the unsuitable applicants through successive stages of selection process.

The Process
Selection is usually a series of hurdles or steps. Each one must be successfully cleared
before the applicant proceeds to the next one. The time and emphasis place on each step
will definitely vary from one organization to another and indeed, from job to job within
the same organization. The sequence of steps may also vary from job to job and
organization to organization. For example some organizations may give more importance
to testing while others give more emphasis to interviews and reference checks. Similarly a
single brief selection interview might be enough for applicants for lower level positions,

while applicants for managerial jobs might interviewed by a number of people.

STEPS IN SELECTION PROCESS:

1.Shortlisting of CVs :
This is the first step of selection process,in which CVs are collected through different
sources like Job Fair, Employment Exchange, Consultancies etc.Then the CVs are
shortlisted as per the criterion.
2.Telephonic interview:
The candidate who has been shortlisted in the first step are interviewed by telephone.
3.RPAT:
This acronym for Reliance Performance Aptitude Test.In this the shortlisted candidate has
to go through the test,which consist of 50 questions and solve it in 12 mins with no
negative marking. To qualify the test the passing marks for contract labour is 12 and for
corporate employee is 23.
4.P.I.:
This acronym for PREDICTIVE INDEX. This test shows behavior of applicant .This is a
method for measuring personality and behavioral factors and the relationship between
personality factor and job criterion. It is use to measure basic aspect of an applicants
personality such as motivation ,emotional balance ,self confident etc.
5.Final Interview:
Several types of interviews are commonly used depending on the nature and
importance of the position to be filled within an organization.
In a NON-DIRECTIVE INTERVIEW the recruiter asks questions as they
come to mind. There is no specific format to be followed.
In a PATTERNED INTERVIEW, the employer follows a pre-determined sequence of
questions. Here the interviewee is given a special form containing questions regarding his
technical competence, personality traits, attitudes, motivation, etc.
In a STRUCTURED OR SITUATIONAL INTERVIEW, there are fixed job related
questions that are presented to each applicant.

In a PANEL INTERVIEW several interviewers question and seek answers from one
applicant. The panel members can ask new and incisive questions based on their
expertise and experience and elicit deeper and more meaningful expertise from
candidates.
Interviews can also be designed to create a difficult environment where the applicants
confidence level and the ability to stand erect in difficult situations are put to test. These
are referred to as the STRESS INTERVIEW. This is basically an interview in which the
applicant is made uncomfortable by a series of often, rude, annoying or embarrassing
questions.
In the final category, there is the APPRAISAL INTERVIEW, where a superior and
subordinate sit together after the performance appraisal to discuss the subordinates rating
and possible remedial actions.
6. Collective Bargaining:
The final selected applicant are bargained by the manager as per the requirement of the
organization.
7.Medical checkup:
Certain jobs require physical qualities like clear vision, perfect hearing, unusual stamina,
tolerance of hard working conditions, clear tone, etc. Medical examination reveals
whether or not a candidate possesses these qualities
8.Training
The applicant are provided training as per his/her requirement and requirement of the job.
Hiring decision:
The line manager has to make the final decision now whether to select or reject a
candidate after soliciting the required information through different techniques discussed
earlier. The line manager has to take adequate care in taking the final decision because of
economic, behavioral and social implications of the selection decisions. A careless
decision of rejecting a candidate would impair the morale of the people and they suspect
the selection procedure and the very basis of selection in a particular organization.
A true understanding between line managers and personnel managers
should be established so as to facilitate good selection decisions. After taking the final
decision, the organization has to intimate this decision to the successful as well as
unsuccessful candidates. The organization sends the appointment order to the successful
candidates either immediately or after sometime depending upon its time schedule.
Replacement Hiring- In this hiring process new employee are hired in place of old
employee. In replacement tracker new as well as old employee data are filled.
Normal Hiring- In this hiring process new employees are hired on new position.

TRAINING AND DEVELOPMENT

Definition of Training:
It is a learning process that involves the acquisition of knowledge, sharpening of
skills, concepts, rules, or changing of attitudes and behaviors to enhance the
performance of employees.
Training is activity leading to skilled behavior.

Its not what you want in life, but its knowing how to reach it

Its not where you want to go, but its knowing how to get there

Its not how high you want to rise, but its knowing how to take off

Different AWARDS given by RELIANCE RETAIL to its salesperson for the

achievements done by them

. Star of the month This is a monthly award.

. Best cashier award - This is a monthly award given to the cashier as per their scan
speed. Cashier having the fastest scanning speed, gets the award.

. Best security guard award - This is a quarterly award.

. Best housekeep award - This is a quarterly award.
. Best commercial associate award - This is a quarterly award.
. Best store manager of the quarter- This is a quarterly award.
. Best store of the quarter- This is also a quarterly award.

HR OPERATIONS:Any company that has a large staff will need someone to oversee the daily operations of
the employees. That is the role of a Human Resources Operations Manager. He or she
will be in charge of hiring and terminations, employee placement, training, development,
and payroll compensations and benefit packages. The position also includes labor
relations. Additionally, the HR Operations Manager is in charge of overseeing the
personnel budget. The HR operation in RELIANCE RETAIL consist of following
functions:-

.Reference check:
Once the interview and medical examination of the candidate is over, the HRD will engage
in checking references. Candidates are required to give the names of 2 or 3 references in
their application forms. These references may be from the individuals who are familiar
with the candidates academic achievements or from the applicants previous employer,
who is well versed with the applicants job performance and sometimes from the coworkers. In case the reference check is from the previous employer, information in the
following areas may be obtained.
Their are job title, job description, period of employment, pay and allowances, gross
emoluments, benefits provided, rate of absence, willingness of previous employer to
employ the candidate again, etc. Further, information regarding candidates regularity at
work, character, progress, etc. can be obtained. Reference checks are taken as a matter of
routine and treated casually or omitted entirely in many organizations. But a good
reference check, when used sincerely, will fetch useful and reliable information to the
organization

. Offer generation:
The details of the applicant are filled on R-connect, and the offer letter is generated by the
Mumbai head office to the zonal head transferred this to HR. If the applicant accepts the

offer then they must be placed on the right job and the signed offer letter will be handed
over to the selected applicant. If the applicant reject the offer then it is shown in system.

.Joining formalities:
This is the process in which the applicants whole certificates, relieving letter, appointment
letter, joining letter, photos etc are checked by the people concerning to the HR
operation.

Induction:
It is a welcome process. It is a process of receiving and welcoming an employee when he
first joins a company and giving him the basic information the needs to settle down
quickly and happily and start work. Induction plays an important role in acquainting the
new environment, companys rules and regulations.

On boarding of recruited candidates (hiring in system):

After the selection procedures are completed then those candidates are hired on the system
by the use of SAP.

Employee Self service (ESS) R-connect:

Through the help of R-connect Employees can log-in by their ID and using Employee Self
service (ESS), they can update their personal details like name, educational
qualifications, mobile number, date of joining, work experience, present and permanent
address, family details, marital status, Goals and objectives(G&O), attendance, leaves,
identification mark, etc. With the help of R-connect, employees can check their
Performance appraisal report, attendance, number of working & worked days, leaves
status; employee can also claim their bills for reimbursement like medical bill for
medical reimbursement, tuition fee receipts for Child education allowance; etc.

Issue of ID card:
To get the ID card, candidate are required to fill the form in which they need to give the
following details like their date of birth, identification mark and blood group, signature
and two passport sized photographs.

.Attendance:
The RELIANCE card also help the management to calculate the attendance of the
employees. Employees when scratches the card at the office entrance then automatically
it gets register in the system with the timing of entrance. Thats how the operation people

calculate the attendance of each of the employee with their entry and exit timing. The
working hour is 10:30-6:00. If the employee gets in the office after 10:30 it will be
calculated as half day and if he leaves after 2,it is then also calculated as half day.

Leaves:
It is the right of employee to get adequate number of leave while working with the
organization. The organization provide for paid leaves such as casual leaves, medical
leaves, maternity leaves.

Types of Leaves:
. Company declared holidays- total leave day is 10.
. Optional holidays- total leave day is 3.
. Sick leave- total leave day is 10.
. Casual leave- total leave day is 5.
. Privilege leave- total leave day is 30.
. Maternity leave- Married female employees of the company are entitled to this leave not
exceeding 12 weeks. Leaves can be granted in conjunction with other leaves but the total
period of absence should not exceed 17 weeks.
. Miscarriage leave- Female employee is entitled to MCL for a period of 6 weeks
immediately following the day of her miscarriage.

Payroll:
Pay-roll: CTC (cost to company) includes 40% as basic/base pay and 60% as choice pay.
The choice pay is basically meant for facilitating Income-tax relaxation to employees.
The base pay includes Provident fund (PF) which is 12% of basic pay and Gratuity which
is 4.81% of basic pay. Choice pay elements includes Office wear allowance, LTA,
medical reimbursement, child education allowance, children hostel allowance,
conveyance, food coupon, gift coupon, fuel & maintenance reimbursement, house rent
allowance, special personal allowance, etc.

. Confirmation Process:
The new recruited people are confirmed by giving them the confirmation letter when their
probation period is over.

.Appointment Letter:
The letter of appointment is always drafted on the letterhead of the company with its
contact number, address and the logo. The letter should state the date on which the
prospective employee would join along with the name and address which has been
provided in the application letter. The heading should be bold, with capital font and is
commonly placed at the center of the letter head.

At the start of an appointment letter, the employee should be informed of the position
which he or she has been appointed. Moreover, it should also mention the date by which
the applicant should sign and return back a copy of the letter, which would confirm his or
her appointment, after which the terms and conditions are mentioned and company
policy. One of the most common statements which you should include is that he or she
would be subject to be transferred or deployed in any area which the company deems fit.
The letter should be signed by an executive who is authorized to hire and fire an
employee and it's usually the Managing Director or CEO of the company.
. PMS:
This acronym for Performance management System. It is the process of obtaining,
analyzing and recording information about the relative worth of an employee. The focus
of the performance appraisal is measuring and improving the actual performance of the
employee and also the future potential of the employee. Its aim is to measure what an
employee does.

"performance appraisal is the systematic, periodic and an impartial rating of an

employees excellence in the matters pertaining to his present job and his potential for a
better job." Performance appraisal is a systematic way of reviewing and assessing the
performance of an employee during a given period of time and planning for his future. It
is a powerful tool to calibrate, refine and reward the performance of the employee. It
helps to analyze his achievements and evaluate his contribution towards the
achievements of the overall organizational goals. It is a powerful tool to calibrate, refine
and reward the performance of the employee. It helps to analyze his achievements and

evaluate his contribution towards the achievements of the overall organizational goals.
It is a powerful tool to calibrate, refine and reward the performance of the employee. It
helps to analyze his achievements and evaluate his contribution towards the
achievements of the overall organizational goals. By focusing the attention on
performance, performance appraisal goes to the heart of HR and reflects the
management's interest in the progress of the employees.
The most common method of PMS is 360 degree which is also known as 'multi-rater
feedback', is the most comprehensive appraisal where the feedback about the
employees performance comes from all the sources that come in contact with the
employee on his job. 360 degree respondents for an employee can be his/her peers,
managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors anyone who comes into contact with the employee and can provide valuable insights
and information or feedback regarding the "on-the-job" performance of the employee.
.Grade change:
If the grade of the employee changes due to his/her transfer or promotion, then it is
upgraded as per their job description.
Loan:
The loan like Personal loan, Education loan, Housing loan, etc. are provided to employees
for certain time period.
Mobile no, e-mail id updation in system:
If there is any changes in mobile number and E-mail id then the updation of new mobile
number and E-mail id on HR Master Data using SAP (by using infotype 105) are done
by the HR Operations department
.Reimbursement as per policy:
Reimbursement is the act of compensating someone for an expense. Often, a person is
reimbursed for out of pocket expenses when the person incurs those expenses through
employment or in a account of carrying out the duties for another party or member.
Common examples are firms compensating individuals who buy supplies for their
companies, or firms compensating employees on field or out-of-town assignments who
pay for their stay and transportation.
Reimbursement can be of many types like day care, mobile expense, transport, medical
expense, study expenditure.

Attrition report:
The unpredicted and uncontrollable reduction in staff and employees in a company through
normal means, such as retirement, resignation, death or sickness. This is natural in any
business and industry.
Reasons of attrition:
Higher studies, job not interesting, medical ground, own business, personal reason, better
job, theft, absconding, misconduct.
Remedies to decrease attrition rate:
Increase facilities, increase salary, create competitive environment for increasing
efficiency, provide incentives.

Absenteeism:
The term absenteeism refers to the failure to attend to work. It is one of the major problems
faced by companies across the globe today. Unscheduled absenteeism badly hurts the
progress of an organization resulting in loss of productivity, increased costs in hiring
additional staff and low morale among the workers. It is high time that employers address
this problem on a priority basis.
Employees can be absent for a variety of reasons including sickness, lethargic attitude,
family emergencies, too much workload and stress, monotonous work or a general
dissatisfaction with the job. A sales professional cites some other reasons like workplace
politics, long commute, strained relationship with the immediate supervisor and lack of
belongingness towards the organization as reasons for being absent from work. Whatever
be the reason absenteeism is not at all a healthy practice and steps should be taken to
manage it effectively.
Innocent absenteeism refers to being absent for those reasons that are beyond the control of
the employees like accidents or illnesses. Under such circumstances the employees
should not be blamed for not turning up at work. Culpable absenteeism on the other hand
is when employees absent themselves at a time when they are fully capable to attend
office. This type of no shows should always be discouraged for it can become a burden to
the organization in the long run.
Some measure can be taken to decrease absentees rate, they can be:
Measure and thereby monitor the rate of absenteeism in your company on a regular basis.

 Initiate periodic health checkups to avoid absences resulting out of illnesses

Implement reward schemes for those employees who are regular
Create a favorable and peaceful work environment where relationship between workers
and
supervisors
are
professional
and
devoid
of
conflict.
Provide adequate training to managers particularly authoritative ones to curb
absenteeism
Engage supervisors to speak to employees who were absent and have returned to work
Educate and engage your employees actively in the organization. Counseling sessions
can
prove
useful.
Keep your employees motivated and try making the organization a fun place to work
Absenteeism is a vital issue that requires immediate attention by both employers and
employees. Employees should enjoy the work they are doing and employers on their part
should help them in whatever way they can to make their experience a pleasant one.
After all satisfied and happy employees look forward to report to work regularly and
absent themselves only for genuine reasons.

Resignation:
When separation is initiated by the employee himself, is termed as resignation. When
circumstances dictate that you need to resign from your job, it is customary to provide your
employer with a letter of resignation. This may be only a courtesy, however, it always is
helpful to leave a job on as good terms as possible. You never know when you will need a
reference from this employer. Even if you are leaving on unpleasant terms, you can craft a
decent and polite letter of resignation.
There are several letter forms you can choose from for this purpose. There is the formal
statement, and the informal statement. You can include two weeks notice, or not. You can
offer the employer options, such as your willingness to train a replacement, or to stay a
little longer if needed. You may want to give a reason for your departure, or not. You can
express regret or not. Be sure to include contact information.
Most people leave for a number of reasons, including finding a better job or pay, moving
away, better use of their skills, chance for advancement, or an illness or disability. In the
case of the latter, your employer probably already is aware that you may be leaving for
medical reasons.
The resignation letter include date, name of the company, name of the employee, address,
email, phone number.

.Full and Final settlement:

When employee leaves an organization all the dues, like Medical, LTA, HRA, Travel, and
all such allowances which is paid annually, the salary for how many days employee has
worked before the cessation of the services in the last working month, should be settled
along with other claims. The person who is going to resign collects the following
documents from the organization:
.No Dues formalities from all Departments like ( Supervisor or Manager, Finance, Facility,
HR, Security,operations,Library,Marketing,etc).Service certificate, Relieving letter,
experience letter, final Settlement & Pay Cheque.

.Experience Letter:
A work experience letter is a very important document that is given by the employer to his
employee, when the latter is relieved from his job. The work experience letters helps
future; prospective employers learn about the abilities of the applicant and verify the work
related details in the resume or CV provided.
A work experience letter is meant to be written briefly and cover all the information
regarding the length of employment, job description, responsibilities handled, etc. An
experience letter is generally addressed 'To Whom It May Concern', as the former
employee may take the letter and submit it with different job applications. The employer
need not go into the details of the former employees professional and personal qualities.

.Relieving Letter:
A relieving letter is issued by a company to an employee who has duly resigned from his
said post. A relieving letter is meant to relieve the employee, as he is no longer associated
with the company. A relieving letter format should be issued on the company letter head
and signed by the concerned authority. The relieving letter should begin with mentioning
that the employer has accepted the employee's resignation letter. It should mention the
post and give credit to the employees contribution to the company. It should mention the
date of joining and also the date of resignation of the employee. The letter end with a
sincere thank you and best wishes for the employees future endeavors.

HR letter:
Some of the HR letter which are issued to the employees during the period of recruitment
to separation are offer letter, confirmation letter, appreciation letter, appointment letter,
relieving letter, experience certificate, No objection certificate (NOC).

Weekly analysis report:

The report are prepared on weekly basis including the development taken place at HR
department, helps, suggestions, guidelines given to operations.

Termination and Separation:

Separation are done in case of resignation which may be due to family problem, jobdissatisfaction, higher education, for better job, absconding. At the time of separation, the
employee has to obtain dues clearance from all departments like HR, Marketing,
Operations, Commercials, Loan Department, etc. After the completion of clearance from
all departments, Experience Certificates, Relieving Letter, No Objection Certificate
(NOC), Full & Final settlement letter, etc. are issued.

RAG updation:
RAG stands for Requirement Available Gap. The HR operation manager maintains
the HR Master data through SAP and also checks the attendance. By periodic
maintenance of employee data and monitor of attendance, HR Operation assesses
the active employees and terminated employees. Hence ascertain manpower
available and required. And accordingly do the recruitment, transfer, and
retrenchment.

Exit interview:
Prior to leaving, an exit interview is conducted to gather feedback and recommendations of
the outgoing employee. Exit interview is a one-to-one discussion where voluntary views
and suggestions are taken from the outgoing employee on what his/her expectations had
been at the time of joining the company, experience while working with the company and
reasons for leaving the company. The concern (HR Department Manger) facilitates and
arranges for the exit interview.

HR and Administration clearances:

The dues like any stationery, office equipments, bill dues, loan, etc. are cleared in HR
Operation department.

Recovery if any:
As per policy cell phone, laptop, or any other requisites are provided from the office to
employees; if employees leave the companies then its the responsibilities of HR

Operations manager to recover the requisites or money.

Transfer & house shifting expenses are also recoverable in case of leaving before
completion of one year from the date of transfer.

Policies:
A policy is a predetermined and accepted course of thoughts and action to serveas a guide
towards certain accepted objectives. In other words we can say that policies are related to
the organizations overall purpose and its objectives in the various areas with which its
operations are concerned.
The policies followed in RELIANCE RETAIL are:
. Domestic travel policy
. International travel policy
. Telephone policy
. Insurance policy
. laptop policy
. leave policy
. Medical policy
. sexual harassment policy
. Vehicle policy
. Loan policy.

KEY LEARNINGS FROM THE PROJECT

Firstly it was a very good experience to work and learn with a world class for two
months as it was my first step into the corporate world.
When I saw my senior people doing each & every kind of work I came to know
how much important is each & every work. Maintaining files in systematic manner
with each & every detail is very important, if not done it hinders the work whenever
these are required for reference in medical claim formalities, appraisal etc.
As I worked with the employees of HR department in the organization during the
project they shared their experience and learnings with me, which was a very good
opportunity I got during my project.
I learned different HR Policies of the organization which were unknown to me

before entering to the corporate world.

I also learned how much the values and culture of the organization impacts the
employees productivity. Like here the Seniors were approachable in nature, I felt an
open culture.
I have gained some learning from every individual working here; it might be in
terms of knowledge, skills, behavior or personal traits etc.
I have learned many small, minute things by observations, being in the HR
department for 2 months, which could not be learnt simply by reading books
theoretically. The practical experience was totally different.
I have also learnt that a HR person should be very polite, soft spoken & good in
handling people. Co-ordination with all departments is very necessary.

OBSERVATIONS AND FINDINGS

During the study of the project I observed different functions of the HR

Department. I got the knowledge about the different types of HR Policies
functioning in the organization.

I also got knowledge about how the organization is following their values in a very
sincere way.

The emphasis is on providing proper working environment to their employees, so

that the employees can work efficiently & smoothly.

The different functions of HR Department at Reliance Retail Ltd. Ranchi are

handled in a very allied way.

Any types of grievances are handled seriously and within time of employees.

BIBLIOGRAPHY
BOOKS:

Human Resource Management

Dessler Gary and Varkkey Biju
Human Resource Management
Chhabra T.N
Management Reasearch Methodology
Kothari C.R

WEBSITES:

www.wikipedia.com
www.ril.com
www.scribd.com
www.google.com