ON

HR POLICIES AND ITS IMPLEMENTATION

AT
Aachi Masala Foods Private Limited, CHEENAI

COMPANY PROFILE
AACHI GROUP was found in the year 1995 by Mr. A.D.Padmasingh Isaac, a first generation
Entrepreneur with BBA and hailing from Nazareth in Tirunelveli District of Tamil Nadu. Mr.
Isaac had earlier served for Godrej Soaps as Area Manager for over a decade.The tamil word
Aachi is used for addressing women with respect. It has also been derived from the word
Aatchi which means to rule. In Silappathikaram, a Tamil epic, the AACHIYAR FAMILY
provided food and shelter to Kovalan and Kannaki, the legendary couple! Undoubtedly, AACHI
has come to rule the kitchen today!

The companies which are under the shadow of AACHI roof are:AACHI MASALA FOODS (P) LTD
AACHI SPICES & FOODS (P) LTD
AACHI SPECIAL FOODS (P) LTD
AACHI has become a household name because of its excellent quality products and at the same
time catering to the common man at prices affordable by him. The product range is so wide and
backed up by quality products that no household can afford to miss Aachi products from kitchen.
The success of the brand Aachi may be attributed to meet the demand of consumer from all
walks of life at affordable price. AACHI Group, which started as a small proprietorship concern
in 1995, has enlarged its branches.The Sales turnover for the year 2010-11 has touched Rs.448
Crores from Aachi Masala Foods (P) Ltd alone. The total turnover of the Group has reached Rs
700 Crores during 2010-11.
Todays pace and pressures on the time of home makers have made AACHI to sharpen focus and
cater better to customers increasing needs.

THE WINNING STRATEGY

The phenomenal success of AACHI in the shortest span of time stems from its consumeroriented approach and for any branded company of equivalent dimension would have taken

several decades, stems from its consumer-oriented approach. AACHIs R & D develops the
products as per the consumers needs. Conforming to International quality guidelines and
specifications which are very stringent for Food Processing Industries, the products are
manufactured adopting the state-of-the-art and latest technology in the hygienic environment.

AACHIs CORE STRENGTHS

Dedicated and Motivated Team
Loyal customers
Continuous market analysis and Survey of customer needs
Strong resources & Marketing Network
Excellent Quality products
Standardization & upgradation of products as per international standards
Adherence to International business standard ethics
Targetting the market of all walks of life
Excellent Brand Recall

AACHI Groups turnover has been increasing at Compounded Annual Growth Rate of 30% over
the last three years which is higher than that of the national average of 15% for Food Processing
Industries. The Growth Rate has been 38% during 2010-11 over 2009-11.The Economic
Slowdown in all Industrial sectors, .AACHI Group could achieve higher turnover even during
the Economic Slowdown in all Industrial sectors. AACHI avails currently 150 product ranges in
different pack sizes to suit every household.
PRODUCTS:
Pure and Blended Spice powders (Masalas)
Wheat products
Edible Oil
Ghee
Ready to Cook products

Asafoetida
Papad
Rice and Wheat products for Diabetic patients
Tea
Biscuits
Vegetable pickles ,rice paste varieties & thokku varieties
Soups
To be efflorescent, AACHI has lined up few products which are to be launched soon.
Mineral Water
Snacks products
Frozen Foods (Veg. & Non Veg.)
Fruit juices & Beverages
Non Veg Pickles
AACHIs products reach the consumers through 3500 Agents and 10 Lakh Retailers.This is the
single greatest strength of AACHI! The product range is classified to be 8 divisions for better and
easy distribution.
To strengthen our distribution network keeping in view the contribution to the society, AACHI
has identified a new channel to distribute the products with the help of Women Self Help
Groups By adopting this strategy of distribution, currently 3000 women are engaged. This
number is expected to reach 1 Lakh very shortly. After distribution through Women Self Help
Group, There is increased visibility in sales of products after distribution through Women Self
Help Group. It also it generates income for the women folk.
Ever increasing AACHI range of products has forced its customers to feel that, the entire range
of products should be made available under one roof. This has given birth to the creation of
MODEL SHOPS. These shops will be of franchise type, which sells the entire range of
AACHI products.Customers who visits these shops will never miss any of the Aachi products of
his/her choice. It is also planned to deliver from these shops the customers requirements at their
door steps.

This process of establishing Model Shops is gaining momentum and it is planned to establish
around 10,000 Model Shops by this year end in Tamil Nadu alone.As AACHI gained No. 1 brand
in TamilNadu AACHI steps her foot ahead into other southern states, Maharashtra, West Bengal
etc. A vigorous drive has been undertaken to achieve a good shares in exports too.
Aachi gained recognition as The Best FMCG Company for the year 2007 by a survey
conducted by Sai Ram Institute of Management Studies. The Chairman Mr. Isaac has been
recognized by the Rotary Club as the Best Entrepreneur. Mr Isaac has also been elected to the
Southern Regional Council of CII recently, representing Tamil Nadu and is the Chairman of
MSME Panel of CII Chennai Zone. Mr. Isaac has been conferred with the Extreme Entrepreneur
Award for 2010 by the Silicon Valley Indus Entrepreneurs USA known as TiE. He is a famous
speaker on Entrepreneurship in several reputed Business Schools and has plans to start AACHI
INSTITUE OF RETAIL MANAGEMENT which will provide 100% placement to the students.
AACHI also sponsors several International and National Conferences for the benefit of industry
and trade through CII and FICCI regularly.
AACHI MASALA FOODS (P) LTD is also planning to set up a manufacturing unit for the
grinding of chilly, coriander etc. Besides setting up Fruits Processing, Pickle manufacturing,
Spices Park and Cold storage units in Gummidipoondi Industrial Estate at a capital cost of Rs 50
crores including World Bank Grant of Rs 5 Crores and Govt of India subsidy of Rs 11.25 Crores.
This project which is unique of its kind and rural centric in nature will improve the living
standards of lakhs of villagers and fulfill the vision of Dr. Abdul Kalam Providing Urban
Amenities in Rural Areas (PURA)
AACHI SPICES & FOODS (P) LTD which also owns the AACHI Brand has embarked upon a
project for the manufacture of vegetarian and non vegetarian pickles, mineral water and fruit
juices etc. AACHI has established an enormous FOOD PARK at an estimated capital cost of RS
14 crores at Red Hills, Chennai.

INTRODUCTION TO TOPIC:
HUMAN RESOURCE POLICIES
Human resource policies are the formal rules and guidelines that businesses put in place to hire,
train, assess, and reward the members of their workforce. These policies, when organized and
disseminated in an easily used form, can serve to preempt many misunderstandings between
employees and employers about their rights and obligations in the business place. It is tempting,
as a new small business owner, to focus on the concerns of the business at hand, and put off the
task of writing up a human resource policy. All business analysts and employment lawyers will
advise a new business owner to get a policy down on paper, even if it is a simple one drafted
from a boilerplate model. Having policies written is important so that it is clear to all what the
policies are and that they are applied consistently and fairly across the organization. Moreover,
when issues concerning employee rights and company policies come before federal and state
courts, it is standard practice to assume that the company's human resource policies, whether
written or verbal, are a part of an employment contract between the employee and the company.
Without clearly written policies, the company is at a disadvantage.
Human Resource Policies refers to principles and rules of conduct which formulate, redefine,
break into details and decide a number of actions that govern the relationship with employees in
the attainment of the organization objectives.
HR Policies cover the following:
1. Policy of hiring people with due respect to factors like reservations, sex, marital status, and the
like.
2. Policy on terms and conditions of employment-compensation policy and methods, hours of
work, overtime, promotion, transfer, lay-off and the like.
3. Policy with regard medical assistance-sickness benefits, ESI and company medical benefits.
4. Policy regarding housing, transport, uniform and allowances.

5. Policy regarding training and development-need for, methods of, and frequency of training and
development.
6. Policy regarding industrial relations, trade-union recognition, collective bargaining, grievance
procedure, participative management and communication with workers.

FORMULATING POLICIES
There are five principal sources for determining the content and meaning of policies:
1. Past practice in the organization.
2. Prevailing practice in rival companies.
3. Attitudes and philosophy of founders of the company as also its directors and the top
management.
4. Attitudes and philosophy of middle and lower management.
5. The knowledge and experience gained from handling countless personnel problems on day to
day basis.

BENEFITS OF HR POLICIES
Organizations should have personnel policies as they ensure the following benefits:
a. The work involved in formulating policies requires that the management give deep thought to the
basic needs of both the organization and the employees. The management must examine its basic
convictions as well as give full consideration to the prevailing practices in other organizations.
b. Established policies ensure consistent treatment of all personnel throughout the organization.
Favoritism and discrimination are, thereby, minimized.
c. Continuity of action is assured even though top management personnel change. The CEO of a
company may possess a very sound personnel management philosophy. He/she may carry the
policies of the organization in his/her head, and he she may apply them in an entirely fair
manner. But what happens when he/she retires? The tenure of office of nay manager is finite. But
the organization continues. Policies promote stability.
d. Policies serve as a standard of performance. Actual results can be compared with the policy to
determine how well the members of the organization are living upto the professional intentions.

e. Sound policies help build employee motivation and loyalty. This is especially true where the
policies reflect established principles of fair play and justice and where they help people grow
within the organization.
f. Sound policies help resolve intrapersonal, interpersonal and intergroup conflicts.

PRINCIPLES OF HR POLICY
1. Principle of individual development to offer full and equal opportunities to every employee to
realize his/her full potential.
2. Principle of scientific selection to select the right person for the right job.
3. Principle of free flow of communication to keep all channels of communication open and
encourage upward, downward, horizontal, formal and informal communication.
4. Principle of participation to associate employee representatives at every level of decisionmaking.
5. Principle of fair remuneration to pay fair and equitable wages and salaries commensurating
with jobs.
6. Principle of incentive to recognize and reward good performance.
7. Principle of dignity of labour to treat every job and every job holder with dignity and respect.
8. Principle of labour management co-operation to promote cordial industrial relations.
9. Principle of team spirit to promote co-operation and team spirit among employees.
10. Principle of contribution to national prosperity to provide a higher purpose of work to all
employees and to contribute to national prosperity.

OBJECTIVES OF STUDY
1. To study the HR Policies of the company.
2. To study the amendments made in the HR Policies of AACHI MASALA FOODS (P)
LTD. since the time of incorporation.
3. To incorporate the amendments in the base policy and prepare a final policy.
4. To design a HR Policy manual for the company with special emphasis on the
Managerial Service Conditions.

SCOPE OF STUDY
In any organization human resource is the most important asset.
As most of the companys overall performance depends on its employees performance which
depends largely on the HR POLICIES of the organization.
So the project will have wide scope to help the company to perform well in todays global
competition.
The core of the project lies in analyzing and assessing the organization and to design an HR
POLICY manual for the organization.

RESEARCH METHODOLOGY
Research Methodology is a term made up of two words, research & methodology. Research
means search for knowledge. It is a scientific and systematic search for potential information
on a specific topic. It is an art of scientific investigation. It is careful investigation or inquiry
especially for search of new fact in any branch of knowledge.

METHOD OF DATA COLLECTION

Data can be of two types primary and secondary data. Primary data are those which are
collected afresh and for the first time, and it is in original form. Primary data can be collected
either through experiment or through survey. I will choose the survey method for data collection.
In case of survey, data can be collected by any one or more of the following ways:

Observation
Questionnaire
Personal or Group Interview
Telephone survey
Communication with respondents
Analysis of documents and historical records

Case study
Small group study of random behavior

I will choose the questionnaire methods of data collection due to limited time in hand. While
designing data-collection procedure, adequate safeguards against bias and unreliability must be
ensured. Whichever method is selected, questions must be well examined and be made
unambiguous. I will examined the collected data for completeness, comprehensibility,
consistently and reliability.
I will also gathered secondary data which have already been collected and analyzed by someone
else. I will also get various information from journals, historical documents, magazines and
reports prepared by the other researchers. For the present piece of research I will used the
following methods:

Questionnaire
Interview
Observation

SAMPLE OF THE STUDY

A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to
the technique or the procedure the researcher would adopt in selecting some sampling units from
which inferences about the population is drawn. Sampling design is determined before any data
are actually collected for obtaining a sample from a given population. The researchers must

decide the way of selecting a sample.

There are various methods of sampling like systematic sampling, random sampling, deliberate
sampling, mixed sampling, cluster sampling, etc. Among these methods of sampling researcher
has used random sampling so that bias can be eliminated and sampling error can be estimated.
Designing samples should be made in such a fashion that the samples may yield accurate
information with minimum amount of research effort.

SAMPLING

Sampling may be defined as the selection of some part of an aggregate or totality on the basis of

which a judgment or inference about an entire population by examining only a part of it.
The items so selected constitute what is technically called a sample, their selection process or
technique is called sample design and the survey conducted in the basis of sample is described as
sample survey.

SAMPLE SIZE
In sampling design the most complicated question is: what should be the size of the sample. If
the sample size is too small, it may not serve to achieve the objectives and if it is too large, we
may incur huge cost and waste resources. So sample must be of an optimum size that is, it should
neither be excessively large nor too small. Here, I will take 200 as the sample size.

QUESTIONNAIRES

Name of Employee: ----------------------------------------------------------------------Designation:

---------------------------------------------------------------------A. Recruitment and Selection
1. Are you satisfied with the external recruitment sources performed in your organization.
1. Agree

2. Disagree

2. Are you satisfied with the monetary reward given on bringing a candidate on board?
1. Agree

2. Disagree

3. Are you satisfied with the background checks conduct for employees.
1. Agree

2. Disagree

4. Are you satisfied with the monetary limits given to you for the expenses?
1. Agree

2. Disagree

B. Induction
1. The induction programme of your organization is informal type.
1. Agree
2. Disagree
2. The induction of your organization covers organizational structure and policies.
1. Agree
2. Disagree
C. Training and Development
1. For Employee performance is the training need analyzed in your organization.
1. Agree
2. Disagree
2. Are you satisfied with the Classroom method adopted by tour organization to train the
employees?
1. Agree
2. Disagree
3. Effectiveness of training program in your Organization is evaluated by observing the post
training performance of employees.
1. Agree
2. Disagree
D. Performance Appraisal
1. Are you satisfied with the Balanced Scorecard method?
1. Agree
2. Disagree
2. Are you satisfied with the feedback given to you by organization?
1. Agree
2. Disagree
E. Career Progression
1. Are you satisfied with the mentor system followed for career progression?
1. Agree
2. Disagree
2. Are you satisfied with the competence analysis and feedback from manager?
1. Agree
2. Disagree
F. Leave Policy
1. Are you satisfied with the privilege leave provided to you?
1. Agree
2. Disagree
G. Communication and Decision making process

1. Are you satisfied with the informal communication pattern?

1. Agree
2. Disagree
2. Are you satisfied with the opinion survey and Department meeting?
1. Agree
2. Disagree
H. Rewards and Recognition
1. Are you satisfied with the monetary rewards?
1. Agree
2. Disagree
I. Personal Accident Insurance Policy
1. Are you satisfied contingencies cover under this policy?
1. Agree
2. Disagree
J. Mediclaim Policy
1. Are you satisfied with the services covered under this policy?
1. Agree
2. Disagree

BIBLIOGRAPHY
Books:

Human Resource Management by Ashwathapa.

Human Resource Management by Michael Armstrong.
Human Resource Policy Analysis: Organizational Applications by Richard J. Niehaus.

Websites:
www.citehr.com
www.wikipedia.com
www.hrgroup.com

www.ppspublishers.com