INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is the function within an organization that focuses
on recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.
Human Resource Management is the organizational function that deals with issues related
to people such as compensation, hiring, performance management, organization
development, safety, wellness, benefits, employee motivation, communication,
administration, and training.

The resource of infinite possibilities, the inimitable reason behind breakthrough ideas,
and the factor that causes astounding action and the treasure that when harnessed leads to
soaring heights is quite simply - the employee. Talent is the key factor that translates into
a comparative advantage for the firm, which provides the leverage to take the company to
another new level, a dimension where machinery and products are futile for it is the idea
that has power. Indeed, companies do recognize the significance of developing the
employee, as is seen with the sudden surge in human resource management practices.

The report thus highlights the human resource practices carried out in Indian private
sector companies.

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 HUMAN RESOURCE PRACTICES AND TRENDS IN INDIAN
PRIVATE SECTOR COMPANIES

CADBURY INDIA

Work and fun can co-exist. At Cadbury India, this philosophy is taken very seriously.
“We celebrate at the drop of a hat,” says Radhakrishnan B. Menon, director (HR). It
perhaps helps that the brand is also about celebrating life’s little moments.

At Cadbury India, it’s all about work hard, play harder! Company brings moments of
delight to its consumers everyday and every time. Therefore, it strongly believes that
those people who create these products should also have fun while doing so. Company
has a clearly defined set of values and a culture that reflects shared accountability for its
business goals, its aggressiveness in pursuing these goals and the adaptability in finding
new and better products and ways to work. Company’s commitment to training and
development is a core value. As it grows, so the people grow with it, developing new
capabilities to take the business forward. Cadbury India has moved to a flatter
organizational structure to offer employees bigger and better jobs for growth and
development.
Beyond the happy coexistence between work and play, the other thinking Cadbury
nurtures is the importance of teamwork. A good team player is more valuable than an
individual, with rewards and recognition for a job well done. For every new recruit, a

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‘buddy’ is nominated who guides the fresher for a month and helps adjust to the job.
“There is a strong sense of kinship, and the feeling that they, too, own the brand. So, there
is greater involvement and loyalty,” says managing director Bharat Puri.

It is ensured that in the course of business activities company not only minimizes its
impact on the environment; but also looks after the health and safety interests of its
employees; in addition to seeking opportunities to improve the local environment and the
communities in which it operates.

PURPLE STAR PROGRAMME

It is a 1-year, cross-functional training program, an important process for inducting

fresh talent into the organization. The programme is aimed at getting fresh students from
premier B-Schools and providing them with structured inputs that prepare them to take
the plunge into the corporate world. The stint is so designed that it gives an opportunity
to:

o Learn about the power of the brand that is Cadbury and the systems and processes
that go to support it
o Experiment with new ideas.
o Suggest and implement changes in systems.
o Understand the impact of the human element on business and to positively
channelize energy.

During this one year period, trainees are provided with several opportunities to interact
with Senior Management and share their views and opinions with them. After completion
of every assignment, they are given detailed feedback on their performance. This captures
the strengths that were displayed and also their areas of development.

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REWARDS AND BENEFITS

Importance is placed on supporting and rewarding the continuously improving

performance of the people. Rewards are not only financial; they also come through
training and career opportunities. Reward packages go beyond good basic pay, offering
great benefits, and where ever possible, choices about how employees are rewarded.

NESTLE INDIA

2002 saw an update of human resource policies in order to strengthen the implementation
of clear corporate policies throughout the Group. The immediate tangible evidence of this
review is a number of documents that outline the objectives of enhancing the wellbeing
and efficiency of our employees.
“The Nestlé Human Resources Policy” is a new policy that encompasses all those
guidelines that constitute a sound basis for efficient and effective human resource
management in the Group. People development is the driving force of the policy. It
includes clear principles on non-discrimination, the right of collective bargaining as well
as the prohibition of any form of harassment. It deals with recruitment, remuneration,
training and development matters and proposes guidelines, the spirit of which should be
respected under all circumstances. Individual responsibility and strong leadership are also
emphasized in this policy. It focuses also on life-long learning and finding an appropriate
work/life balance. The intention to become a flexible network organization has been
recognized by a working document called “Nestlé on the Move to Flat and Flexible
Organizations”. It includes concrete, pragmatic proposals for implementing flat and
flexible structures, inspiring management and more dynamic compensation. Together

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with the Project Fitness initiative, such practices will have a strong impact on white-collar
productivity, a domain in which Nestlé can still make progress.

During 2002, Nestlé also issued a new corporate policy on Health and Safety. It confirms
Nestlé strategy on health and safety that respects, and often goes beyond, local legislation.
All staff members are invited to contribute actively and to commit themselves to
improving the Group’s performance in this area .Education and training accompanying
this 2002 Management Report is the “Nestlé People Development Review”, a new Nestlé
report that describes how transfer of knowledge is a fundamental part of the basic Nestlé
business strategy, comprised of three primary elements. The first is formal educational
activities, achieved through a mixture of classroom and on-the-job training. In some
countries this starts with elementary-level education. More generally it ranges from
apprenticeships, through specialist technical or commercial training, up to a series of
advanced management programmes.
A training survey in 59 countries revealed that more than half of Nestlé employees
participated in a training programme during 2002 and that 65% of them were production
employees, sales people and first line supervisors. This demonstrates the extent to which
training is deployed at all levels of the organization. Training courses are not only
dedicated to enhancing professional skills: in fact, almost 30% of training activities
contribute to personal development of staff. Secondly, people are developed through the
transfer of technological know-how. Nestle shall also help to introduce better practices
outside the Company, for example to local farmers who supply the raw materials. The
benefits of technology transfer at all levels are reinforced by a steady flow of scientists
and technicians to and from R&D centres in Switzerland and other parts of the world. The
third dimension of human development relates to the wider community. Training and
practical support is provided to many of the communities in which company operates, and
encourages employees to expand their interests outside the factory, the laboratory, or the
office. This helps them to broaden their horizons and realize their full potential, while
benefiting the community.

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 LARSEN AND TUOBRO

L&T is a team of more than 29000 L&T-ites spread across multiple locations across the
globe, having proven track record and professional skills, woven together with a common
culture of trust & caring.

L&T offers its people freedom at work, unmatched leadership & the opportunity to grow
at a rapid pace. It provides them challenging, interesting & motivating assignments which
brings a sense of professional fulfillment.

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The company encourages entrepreneurial skills thus, enabling and empowering
employees to take appropriate risks. Employee participation is encouraged by inviting
suggestions & opinions. This is coupled with competitive compensation & rewards and
training through Core Development & Behavioral Development Programmes, to enable
them to unleash their full potential.

TRAINING

Quality training and development of Human Resource is realized through identification of

training needs within the organization and designing and implementing those need based
training programmes to bring about continuous up gradation of knowledge, skills and
employee attitudes. An annual training calendar is drawn to highlight the training
activities for the year which includes civil, mechanical, electrical, finance related and
behavioral programmes covering a wide cross-section of employees.

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 RELIANCE INDUSTRIES LIMITED

Reliance Industries Limited strongly believes that it is “the people of Reliance” who
make “the difference.” Hence, every employee is encouraged to optimize his/her full
potential by availing of opportunities that exist across multiple functions, disciplines as
well as geographies.

RECRUITMENT

The new recruits are given an accelerated training through a unique initiative called
“Dronacharya Scheme”. In this scheme senior personnel (Dronacharya) takes charge of 2-
3 youngsters each and vows to mentor them for independent positions in 3-6 months.

TRAINING

Training plays a vital role in enhancing the efficiency, productivity and performance of
all employees. The programs are so effective that Reliance executives have the ability to
execute world-class projects in record time. Over 68,600 man days of training are
undertaken to groom people both in personal as well as professional capabilities. An in-
house training program focused on competency in finance and accounts develops
graduates to take up higher responsibilities in the finance and accounts function.The
company is planning to introduce a customized management program that will train
managers in marketing and other communication skills. Company has sponsored a
number of engineers in a customized management course: MPRE (Management Program
for Reliance Engineers) at IIM Bangalore and several science graduates for a Reliance
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Certified Engineering course with IIT Mumbai. Company has also launched a unique
initiative to encourage the spouses of employees to also work with it. The wives of
employees are being trained to take up jobs – full time, part time or on call – at Reliance
Retail outlets in different cities. The experimental launch in Gujarat has been successful
with about 400 housewives participating. This initiative is being undertaken at other
locations with particular focus on cities that have a lot of employees who have migrated
from all over the country.

ACHIEVEMENTS

o Reliance won the CNBC TV-18 instituted Jobstreet.com Jobseekers’ Employer of

Choice Award.
o Jamnagar Refinery was adjudged the winner of the “Golden Peacock National
Training Award -2007”.
o Patalganga Manufacturing Division won the “ASTD (American Society for
Training & Development) Excellence in Practice Award” for innovative practice
titled Learning Function’s role as Business partner: Empowering people with
Knowledge to achieve Business Goals.

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 TATA

A Tata company aims to provide equal opportunities to all its employees and all qualified
applicants for employment without regard to their race, caste, religion, color, ancestry,
marital status, gender, sexual orientation, age, nationality, ethnic origin or disability.
Human resource policies promote diversity and equality in the workplace, as well as
compliance with all local labor laws, while encouraging the adoption of international best
practices. Employees of a Tata company are treated with dignity and in accordance with
the Tata policy of maintaining a work environment free of all forms of harassment,
whether physical, verbal or psychological. Employee policies and practices are
administered in a manner consistent with applicable laws and other provisions of this
Code, respect for the right to privacy and the right to be heard, and that in all matters
equal opportunity is provided to those eligible and decisions are based on merit.

STARS PROGRAMME

Special thanks and recognition system is a new HR initiative at Taj Group of Hotels that
aims at awarding and recognizing achievement and exceptional performance
instantaneously. It links customer delight and employee recognition. It is based on the
premise that happy employees lead to happy customers. The programme allows
employees to win points (at the recommendation of a colleague or a guest). This gives
them access to different levels of standing that go hand-in-hand with specific rewards. In
addition, employees are strongly encouraged to make suggestions and recommend
innovations that may be applied to the group as a whole. For example, a bellboy received
an American guest recently after a late-night flight. While escorting him to the room, he
realized that the guest had the beginnings of a cold. The guest, though, declined his offer

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to fetch a doctor. So, of his own accord, the bellboy got the guest a glass of warm water
spiked with some ginger and honey. The guest was surprised and delighted. He wrote a
note about this gesture and this added to the employee’s points. Accumulation of points
enables an employee to pin a star on his lapel. Still more points gets him into exclusive
clubs that can fetch him gift vouchers, cash prizes and holidays in a Taj hotel of his
choice. The Taj Group of Hotels won the Hermes Award 2002 for the best innovation
in human resources in the global hospitality industry for STARS Programme.

TRAINING

The training programmes across the group aspire to inculcate a work ethos that is global,
professional and warm. The leadership programmes undertake potential assessment and
training. At company’s centres of excellence, heads of departments are trained so they
can go forth and train their staff. There are foundation modules and accreditation
programmes that an employee is put through to attain the Tata standards.

Human Resource Management is one of the key drivers in the transformation and
restructuring presently underway in the Tata Group. Alex Emmanuel, vice president, HR,
believes that the real competition is for people and competence and is thus taking HR
initiatives that will help to reinvent the organization.

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 CONCLUSION

Over the years, organizations the world over have increasingly become aware of the
importance of human resources. The real life experiences substantiate the assumption that
no matter how sophisticated and modern the business activities of the organization may
become, it will find it extremely difficult to sustain its growth and effectiveness unless its
human resources are complementary to its operations. It has been realized that dynamic
people can build dynamic and growth oriented organizations and effective people
contribute to the effectiveness of the organization.

When implementing HR practices and policies, managers should note that HR practices: -

o are more effective, and can produce a synergistic effect, if they are
complementary to each other.
o must be congruent to the long-term strategic objectives and mission statement of
the organization.
o require significant planning, resources and effort. The participation, involvement
and commitment of all the firm's employees and their unions have to be secured.
This requires leadership and a cohesive management team over the long-term.
o necessitate that people who are expected to assist with the implementation of the
new HR practices must be consulted and be a part of the planning, development
and implementation processes right from the start.
o may not be successfully implemented without significant changes in the structure
and culture if the structure of an organization is highly hierarchical with an
accompanying bureaucratic culture. Such changes would most likely involve
significant management changes and a move to a leadership style more conducive
to participation.

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REFERENCES

o http://www.coolavenues.com/know/hr/sukeshni-hr-16.php

o www.cadburyindia.com

o http://www.nestle.com/Resource.axd?Id=D6A8C32D-2199-4BB8-BC07-

13D3CC68E498

o http://www.tatamail.com/company/Articles/inside.aspx?artid=Z0JoHe2e4gw=

o http://www.financialexpress.com/news/RIL-engages-Hewitt-Hay-Group-for-HR-

initiatives/312603/

o http://ril.com/html/aboutus/awards.html

o http://ril.com/html/aboutus/human_resource.html

o www.larsentoubro.com

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