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INTRODUCTION TO
INFORMATION SYSTEM
1
HUMAN RESOURCE INFORMATION
MANAGEMENT
Definition:
A Human Resources Information System is a system that lets you keep track of all
your employees and information about them. It is usually done in a database or, more often,
in a series of inter-related databases. These systems include the employee name and contact
information and all or some of the following:
department,
job title,
grade,
salary,
salary history,
position history,
supervisor,
training completed,
special qualifications,
ethnicity,
date of birth,
disabilities,
veterans status,
visa status,
benefits selected,
They include reporting capabilities. Some systems track applicants before they
become employees and some are interfaced to payroll or other financial systems. The
Human Resource Information System (HRIS) is a software or online solution for the data
entry, data tracking, and data information needs of the Human Resources, payroll,
management, and accounting functions within a business. Normally packaged as a data base,
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hundreds of companies sell some form of HRIS and every HRIS has different capabilities.
Pick your HRIS carefully based on the capabilities you need in your company.
Typically, the better The Human Resource Information Systems (HRIS) provide overall:
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An effective HRIS provides information on just about anything the company needs to
track and analyze about employees, former employees, and applicants. Your company will
need to select a Human Resources Information System and customize it to meet your needs.
With an appropriate HRIS, Human Resources staff enables employees to do their own
benefits updates and address changes, thus freeing HR staff for more strategic functions.
Additionally, data necessary for employee management, knowledge development, career
growth and development, and equal treatment is facilitated. Finally, managers can access the
information they need to legally, ethically, and effectively support the success of their
reporting employees.
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NEED FOR THE STUDY
.
An effective HRIS provides information on just about anything the company needs
to track and analyze about employees, former employees, and applicants. Any company will
need to select a Human Resources Information System and customize it to meet your needs.
With an appropriate HRIS, Human Resources staff enables employees to do their own
benefits updates and address changes, thus freeing HR staff for more strategic functions.
Additionally, data necessary for employee management, knowledge development, career
growth and development, and equal treatment is facilitated. Finally, managers can access the
information they need to legally, ethically, and effectively support the success of their
reporting employees.
So the present study has been undertaken.
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OBJECTIVES OF THE STUDY:
Organization keep involving and transforming change is to main force behind
the development of organizations. If a practice in a corporation has been going on
without any modifications , amendments or changes immediately.
Hence the underlying objectives are
Make a study in prevailing HRIS.
To identify Accuracy of Employee data.
To make the required changes in SAP.
Identify the Mistakes of Employee’s data and Update the same in SAP.
To identify the “Data Needed” and suggest the same to the organization.
The involvement and participation of both the administration and the executives in
bringing about desired betterment both in daily routine and procedure assessment
by adopting a new outlook , attitudes and practices of executive business.
METHODOLOGY
The present study has been conducted in HERITAGE FOODS
INDIA LIMITED situated at Hyderabad. The online Interviews are conducted
through a properly designed questionnaire constitute the primary source of data
for the study.
Unit of study
Two instruments are used; the first one is the management schedule to
gather information from management on different angles of organization.
The second one intended to administer among the sample.
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Primary source : Structured closed ended questionnaire
Journals, Internet.
LIMITATIONS
The study aims at examining the levels of job satisfaction among the employees of
HEARITAGE FOODS LTD. But all the units of the organization could not be covered
Due to lack of time and considering the resources available the study to 100 employees
only.
There is every possibility of deviations in the answering pattern from what the
There is every chance of misinterpretation of some question in such a case the response
might be vague.
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To complete this report with full fleded information it is necessary to collect the data
from the each and every corner of the organization but to allocation of short span of time
Total number of employee is not covered under the sample size taken. The samples of
worker are taken randomly. This is due to logistical constraints and time factor.
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INDUSTRY PROFILE
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HISTORY OF INDIAN FOODS INDUSTRY
Retailing is one of the pillars of the economy in India and accounts for 35% of
GDP. The retail industry is divided into organised and unorganised sectors. Over 12 million
outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in
size. 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 the 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, hand cart and pavement vendors, etc.
Most Indian shopping takes place in open markets and millions of independent grocery
shops called kirana. Organized retail such supermarkets accounts for just 4% of the market
as of 2008. Regulations prevent most foreign investment in retailing. Moreover, over thirty
regulations such as "signboard licences" and "anti-hoarding measures" may have to be
complied before a store can open doors. There are taxes for moving goods to states, from
states, and even within states.
Growth
An increasing number of people in India are turning to the services sector for
employment due to the relative low compensation offered by the traditional agriculture and
manufacturing sectors. The organized retail market is growing at 35 percent annually while
growth of unorganized retail sector is pegged at 6 percent.
The Retail Business in India is currently at the point of inflection. Rapid change with
investments to the tune of US $ 25 billion is being planned by several Indian and
multinational companies in the next 5 years. It is a huge industry in terms of size and
according to management consulting firm Technopak Advisors Pvt. Ltd., it is valued at about
US $ 350 billion. Organised retail is expected to garner about 16-18 percent of the total
retail market (US $ 65-75 billion) in the next 5 years.
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India has topped the A.T. Kearney’s annual Global Retail Development Index (GRDI)
for the third consecutive year, maintaining its position as the most attractive market for retail
investment. The Indian economy has registered a growth of 8% for 2007. The prediction for
2008 is 7.9%. The enormous growth of the retail industry has created a huge demand for real
estate. Property developers are creating retail real estate at an aggressive pace and by 2010,
300 malls are estimated to be operational in the country.
With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011,
India will need additional retail space of 700,000,000 sq ft (65,000,000 m2) as compared to
today. Current projections on construction point to a supply of just 200,000,000 sq ft
(19,000,000 m2), leaving a gap of 500,000,000 sq ft (46,000,000 m2) that needs to be filled,
at a cost of US$15–18 billion.
According to the Icier report, the retail business in India is estimated to grow at 13%
from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganized retail sector is
expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in
2006-07 to $ 496 billion in 2011-12.
The Indian Retail Market Indian market has high complexities in terms of a wide
geographic spread and distinct consumer preferences varying by each region necessitating a
need for localization even within the geographic zones. India has highest number of outlets
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per person (7 per thousand) Indian retail space per capita at 2 sq ft (0.19 m2)/ person is
lowest in the world Indian retail density of 6 percent is highest in the world. 1.8 million
households in India have an annual income of over 45 lakh
Delving further into consumer buying habits, purchase decisions can be separated into
two categories: status-oriented and indulgence-oriented. CTVs/LCDs, refrigerators, washing
machines, dishwashers, microwave ovens and DVD players fall in the status category.
Indulgence-oriented products include plasma TVs, state-of-the-art home theatre systems,
iPods, high-end digital cameras, camcorders, and gaming consoles. Consumers in the status
category buy because they need to maintain a position in their social group. Indulgence-
oriented buying happens with those who want to enjoy life better with products that meet
their requirements. When it comes to the festival shopping season, it is primarily the status-
oriented segment that contributes largely to the retailer’s cash register.
While India presents a large market opportunity given the number and increasing
purchasing power of consumers, there are significant challenges as well given that over 90%
of trade is conducted through independent local stores. Challenges include: Geographically
dispersed population, small ticket sizes, complex distribution network, little use of IT
systems, limitations of mass media and existence of counterfeit goods.
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Major Indian Retailers
Indian apparel retailers are increasing their brand presence overseas, particularly in
developed markets. While most have identified a gap in countries in West Asia and Africa,
some majors are also looking at the US and Europe. Arvind Brands, Madura Garments,
Spykar and Royal Classic Polo are busy chalking out foreign expansion plans through
the distribution route and standalone stores as well. Another denim wear brand, Spykar,
which is now moving towards becoming a casualwear lifestyle brand, has launched its store
in Melbourne recently. It plans to open three stores in London by 2008-end.
The low-intensity entry of the diversified Mahindra Group into retail is unique because
it plans to focus on lifestyle products. The Mahindra Group is the fourth large Indian
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business group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla
Group, and Bharti Enterprises Ltd. The other three groups are focusing either on perishables
and groceries, or a range of products, or both.
Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe
Deposit Lockers
PGC Retail -T-Mart IndiaSwitcher , Respect India , Grand India Bazaar ,etc.,
RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s
Super, Daily & Fresh
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Reliance ADAG Retail-Format: Reliance World
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COMPANY PROFILE
Heritage at a Glance:
The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is
one of the fastest growing Private Sector Enterprises in India, with three-business divisions
viz., Dairy, Retail and Agri under its flagship Company Heritage Foods (India) Limited
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(HFIL), one infrastructure subsidiary - Heritage Infra Developers Limited and other
associate Companies viz., Heritage Finlease Limited, Heritage International Limited and
Heritage Agro Merine Private Limited. The annual turnover of Heritage Foods crossed
Rs.347 crores in 2006-07 and is aiming for Rs.700 crores during 2007-08.
In the year 1994, HFIL went to Public Issue to raise resources, which was
oversubscribed 54 times and its shares are listed under B1 Category on BSE (Stock Code:
519552) and NSE (Stock Code: HERITGFOOD)
At present, Heritage has market presence in all the states of South India.
More than three thousand villages and five lakh farmers are being benefited in these states.
On the other side, Heritage is serving more than 6 lakh customers needs, employing more
than 700 employees and generating indirectly employment opportunity to more than 5000
people. Beginning with a humble annual turnover of just Rs.4.38 crores in 1993-94, the sales
turnover has reached close to Rs.300 crores during the financial year 2005-2006.
Sri Naidu held various coveted and honorable positions including Chief
Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives &
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Cinematography, Member of the A.P. Legislative Assembly, Director of A.P. Small
Industries Development Corporation, and Chairman of Karshaka Parishad.
Sri Naidu has won numerous awards including " Member of the World
Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time Asia ), "
Business Person of the Year " (Economic Times), and " IT Indian of the Millennium " ( India
Today).
Sri Naidu was chosen as one of 50 leaders at the forefront of change in the
year 2000 by the Business Week magazine for being an unflinching proponent of technology
and for his drive to transform the State of Andhra Pradesh.
Mission:
Vision:
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To be a preferred employer by nurturing entrepreneurship, managing career
aspirations and providing innovative avenues for enhanced employee prosperity.
Heritage Slogan:
Heritage's soul has always been imbibed with an unwritten perpetual commitment to
itself, to always produce and provide quality products with continuous efforts to improve the
process and environment.
Today Heritage feels that the ISO certificate is not only an epitome of
achieved targets, but also a scale to identify & reckon, what is yet to be achieved on a
continuous basis. Though, it is a beginning, Heritage has initiated the process of
standardizing and adopting similar quality systems at most of its other plants.
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Commitments:
Milk Producers:
Customers:
Employees:
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Best appraisal systems to motivate employees
Incentive, bonus and reward systems to encourage employees
Heritage forges ahead with a motto "add value to everything you do"
Returns:
Service:
Highest impotence to investor service; no notice from any regulatory authority since
2001 in respect of investor service
Very transparent disclosures
Suppliers:
Doehlar: technical collaboration in Milk drinks, yogurts drinks and fruit flavoured drinks
Alfa-Laval: supplier of high-end machinery and technical support Focusing on Tetra pack
association for products package.
Society:
more than 9500 procurement agents got self employment in rural areas
Employment for the youth by providing financial and animal husbandry support for
establishing MINI DAIRIES
Producing highly health conscious products for the society
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1. Customer focus to understand and meet the changing needs and expectations of
customers.
2. People involvement to promote team work and tap the potential of people.
3. Leadership to set constancy of purpose and promote quality culture trough out the
organization.
4. Process approach to assess the efficiency and effectiveness of each process.
5. Systems approach to understand the sequence and interaction of process.
6. Factual approach to decision making to ensure its accuracy.
7. Continual improvement processes for improved business results.
8. Development of suppliers to get right product and services in right time at right
place.
The total turnover is Rs 341 Crores during the financial year 2006-07 against
the turnover of 292.02 Crores in 2005-06. Today Heritage distributes quality milk & milk
products in the states of A.P, Karnataka, and Kerala & Tamil nadu.
During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs against
Rs.24525.23 lakhs in the previous year. The sales of miik products including bulk sales of
cream, ghee and butter were recorded Rs 5781.59 lakhs against Rs 4677.21 lakhs.
Milk sales:
23% growth was recorded in AP 2.38 lakhs litres per day(LLPD) in 2006-07 against
1.93 LLPD in 2005-06. 13% growth was recorded in Tamilnadu-1.53 LLPD in 2006-07
against 1.35 LLPD in 2005-06. Over all growth of 6% was recorded- 5.49 LLPD in 2006-07
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against 5.16 LLPD. Flavoured milk sales recorded a growth rate of 77% over 2005-06.
Butter milk sales have gone up by 45% over 2005-06.
Outlook:
Considering the growth potential in the liquid milk market, the company has
drawn plans to increase its market share in the existing markets and to enter into new
markets there by doubling revenues in dairy business in the next 3 years. To achieve this
object, company is undertaking major expansion in dairy business by inverting over Rs20
crores during 2006-07 and over Rs10 crores during the current year to strengthen the milk
procurement.
BRANCHES OF HFIL:
1. Dairy
2. Retail
3. Agribusiness
1. Dairy:
It is the major wing among all. The dairy products manufactured by HFIL are
Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.
2. Retail:
In the retail sector HFIL has outlets namely “Fresh@”. In those stores the
products sold are vegetables, milk& milk products, grocery, pulses, fruits etc.
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Fresh@ is a unique chain of retail stores, designed to meet the needs of the
modern Indian consumer. The store rediscovers the taste of nature every day making grocery
shopping a never before experience.
The unique& distinctive feature of Fresh@ is that it offers the widest range
of fresh fruits and vegetables which are directly hand picked from the farms. Freshness lies
in their merchandise and the customers are always welcomed with fresh fruits and
vegetables no matter what what time they walk in.
3. Agri Business:
In this business HFIL employees will go to farmers and have a deal with
them. Those farmers will sell their goods like vegetables, pulses to HFIL only. And HFIL
will transport the goods to retail outlets.
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REVIEW OF
LITERATURE
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have their origin on software that integrates information from different applications into one
universal database. The linkage of its financial and human resource modules through one
database is the most important distinction to the individually and proprietary developed
predecessors, which makes this software application both rigid and flexible.
Purpose
1. Payroll
2. Work Time
3. Benefits Administration
4. HR management Information system
5. Recruiting
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6. Training/Learning Management System
7. Performance Record
8. Employee Self-Service
The payroll module automates the pay process by gathering data on employee time and
attendance, calculating various deductions and taxes, and generating periodic pay cheques
and employee tax reports. Data is generally fed from the human resources and time keeping
modules to calculate automatic deposit and manual cheque writing capabilities. This module
can encompass all employee-related transactions as well as integrate with existing financial
management systems.
The work time module gathers standardized time and work related efforts. The most
advanced modules provide broad flexibility in data collection methods, labor distribution
capabilities and data analysis features. Cost analysis and efficiency metrics are the primary
functions.
The benefits administration module provides a system for organizations to administer and
track employee participation in benefits programs. These typically encompass insurance,
compensation, profit sharing and retirement.
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Online recruiting has become one of the primary methods employed by HR departments to
garner potential candidates for available positions within an organization. Talent
Management systems typically encompass:
The training module provides a system for organizations to administer and track employee
training and development efforts. The system, normally called a Learning Management
System if a standalone product, allows HR to track education, qualifications and skills of the
employees, as well as outlining what training courses, books, CDs, web based learning or
materials are available to develop which skills. Courses can then be offered in date specific
sessions, with delegates and training resources being mapped and managed within the same
system. Sophisticated LMS allow managers to approve training, budgets and calendars
alongside performance management and appraisal metrics.
The Employee Self-Service module allows employees to query HR related data and
perform some HR transactions over the system. Employees may query their attendance
record from the system without asking the information from HR personnel. The module also
lets supervisors approve O.T. requests from their subordinates through the system without
overloading the task on HR department.
Many organizations have gone beyond the traditional functions and developed human
resource management information systems, which support recruitment, selection, hiring, job
placement, performance appraisals, employee benefit analysis, health, safety and security,
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while others integrate an outsourced Applicant Tracking System that encompasses a subset
of the above.
External links
Formed when HR and IT professionals found themselves needing mediators, IHRIM is the
only Professional Human Resource Association dedicated to the HRIS and HR Technology
professions. IHRIM is the clearinghouse for the HRIM (Human Resource Information
Management) industry. Today, IHRIM is a community of experts - a dynamic group of
practitioners, vendors, consultants, students, and faculty that continues to grow.
Future plans include to: • Fund scholarly publications on specific HR and HRIM issues. •
Encourage development of educational programs and course curriculum to advance the
HRIM profession. • Conduct research and development activities related to HRIM and the
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needs of HR systems professionals. For additional information about the HRIM
Foundation’s initiatives or to inquire about donation opportunities,
Human Resource Information Systems (HRIS) have become one of the most important tools
for many businesses. Even the small, 20-person office needs to realize the benefits of using
HRIS to be more efficient. Many firms do not realize how much time and money they are
wasting on manual human resource management (HRM) tasks until they sit down and
inventory their time. HRIS is advancing to become its own information technology (IT)
field. It allows companies to cut costs and offer more information to employees in a faster
and more efficient way. Especially in difficult economic times, it is critical for companies to
become more efficient in every sector of their business; human resources (HR) is no
exception.
HRIS refers to software packages that address HR needs with respect to planning, employee
information access, and employer regulatory compliance. The following text begins with a
discussion of human resource planning, followed by human resource management systems.
American companies must now operate in a rapidly changing business environment. These
changes have important implications for HRM practices. To ensure that management
practices support business needs, organizations must continually monitor changing
environmental conditions and devise HRM strategies for dealing with them. The procedure
used to tie human resource issues to the organization's business needs is called human
resource planning. Also known as HR planning, this procedure is defined as the "process of
identifying and responding to [organizational needs] … and charting new policies, systems,
and programs that will assure effective human resource management under changing
conditions."
The purposes of HR planning are to enable organizations to anticipate their future HRM
needs and to identify practices that will help them to meet those needs. HR planning may be
done on a short- or long-term (three or more years) basis. Its aim is to ensure that people will
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be available with the appropriate characteristics and skills when and where the organization
needs them. The use of HR planning enables companies to gain control of their future by
preparing for likely events. That is, they can anticipate change and devise appropriate
courses of action. When companies learn how to capitalize on future events, their own future
improves.
As valuable as HR planning is, many companies ignore this opportunity. Some see it as too
difficult and frustrating, while others simply do not see the need for it. However, when
failing to properly plan for their human resources, employers are forced to respond to events
after they occur, rather than before; they become reactive, rather than proactive. When this
outcome occurs, an organization may be unable to correctly anticipate an increase in its
future demand for personnel. At best, such a company would be forced to recruit personnel
at the last minute and may fail to find the best candidates. At worst, the company may
become seriously understaffed.
Consequences. For instance, the understaffing could cause existing employees to experience
a great deal of stress as they attempt to meet additional demand without adequate resources
and assistance. If required work is not getting done, the firm ultimately may experience an
increase in back orders, which could cause a decrease in customer goodwill, an increase in
competition, and a loss of market share.
When engaged in human resource planning, a company derives its human resource needs by
first forecasting its demand for human resources (i.e., the number and types of people
needed to carry out the work of the organization at some future point in time), and then its
supply (i.e., the positions that are expected to be already filled). The difference between the
two forecasts signifies the firm's HR needs. For example, if a firm estimates that it will
demand 12 accountants during the next fiscal year and expects to retain its supply of nine
who are already on staff, its HR need would be to hire three additional accountants.
Following is a closer look at how a company can determine its HR needs and devise plans to
meet them.
DEMAND FORECASTING
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Demand forecasting involves predicting the number and types of people the organization
will need at some future point in time. There are two general approaches to demand
forecasting: statistical and judgmental. Using a statistical approach, an organization predicts
its needed workforce size on the basis of certain business factors. A business factor is an
attribute of the business, such as sales volume or market share, which closely relates to the
size of the needed workforce. For example, a hospital could use the business factor of
projected patient load to predict the number of nurses it would need at some point in time.
STATISTICAL APPROACHES.
The most commonly used statistical methods of demand forecasting are trend, ratio, and
regression analysis. In trend analysis, the future demand for human resources is projected on
the basis of past business trends regarding a business factor. An example of a trend analysis
is illustrated in Exhibit 1, which depicts the relationship between a business factor (namely,
sales volume) and workforce size. As one can see from the exhibit, if the company expects
its 2010 sales to be $10 million, it will need to increase its workforce to a size of nearly 240,
which is the number of employees it had in 2006 when sales were $10.2 million.
Ratio analysis is the process of determining future HR demand by computing an exact ratio
between the specific business factor and the number of employees needed. It thus provides a
more precise estimate than trend analysis. For instance, the demand for professors at a
university could be forecast on the basis of the student-faculty ratio. Suppose that a
university has 10,000 students and 500 professors; the student-faculty ratio is thus
10,000:500 or 20:1. This ratio means that for every 20 students, the university needs 1
professor. If the university anticipates a student enrollment increase of 1,000 for next year, it
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would need to hire 50 (1000/20) new professors. This is in addition to any hiring needed to
fill vacancies from existing faculty who might leave in the meantime.
Regression analysis is similar to both trend and ratio analyses in that forecasts are based on
the relationship between a business factor and workforce size. However, this method is more
statistically sophisticated. Using statistical software, the analyst first creates a scatter
diagram depicting the relationship between the business factor and workforce size. The
software can then calculate a regression line, which cuts right through the center of the
points on the scatter diagram. (The regression line is mathematically determined using a
formula found in most statistical texts.) By inspecting values along the regression line, one
can see how many employees are needed at each value of the business factor. Both ratio
analysis and regression analysis are aspects of human resource management systems
(HRMS) packages, and therefore provide the business with the capabilities to calculate more
accurate and timely forecasts.
Statistical methods of demand forecasting assume that the relationship between workforce
size and the business factor remains constant over time. If this relationship were to change
unexpectedly, the forecast would become inaccurate. For example, the forecast of needed
professors based on the student-faculty ratio would be inaccurate if the university decided to
change its teaching approach and institute distance learning classes. This approach to
teaching involves the use of video equipment, which can beam the professor's lectures to
many different locations, thus allowing many more students to enroll in the class.
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Consequently, the 20:1 ratio would no longer apply; the university would now be able to
function with fewer professors (or at least more students per professor).
JUDGMENTAL APPROACHES.
Judgmental approaches to demand forecasting involve the use of human judgment, rather
than a manipulation of numbers. Two of the most commonly used judgmental techniques are
group brainstorming and sales force estimates. The group brainstorming technique of
demand forecasting uses a panel of experts (i.e., people within the organization who
collectively understand the market, the industry, and the technological developments bearing
on HRM needs). These experts are asked to generate a forecast through the process of
brainstorming. A variety of brainstorming techniques exist. Most involve a face-to-face
discussion among group members, who are asked to reach a consensus.
The accuracy of the forecasts depends on the correctness of these assumptions. Of course,
the future is very difficult to predict because it is subject to many uncertainties. Therefore,
the organization must continually monitor its demand forecasts in light of any unexpected
changes. HRMS packages facilitate the calculation and monitoring of demand forecasts.
The use of sales force estimates represents another judgmental approach for forecasting HR
demand. This approach is most appropriately used when the need for additional employees
arises from the introduction of new products. When a new product is launched, sales
personnel are asked to estimate the demand for the product (i.e., expected sales volume)
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based on their knowledge of customer needs and interests. The organization then uses this
information to estimate how many employees will be needed to meet this demand. One
drawback of this approach is the possibility of bias. Some sales personnel may purposely
underestimate product demands so they will look good when their own sales exceed the
forecasts. Others may overestimate demand because they are overly optimistic about their
sales potential.
SUPPLY FORECASTING
Once a demand forecast has been made, an organization has a relatively good idea of the
number and nature of positions it will need to carry out its work at a particular point in time.
It then estimates which of these positions will be filled at that time by individuals who
already are employed by the company. The process used to make this estimation is called
supply forecasting.
Supply forecasting is a two-step process. HRMS packages provide the employer with the
means to automate much of these two steps. In the first step, the organization groups its
positions by title, function, and responsibility level. These groupings should reflect levels of
positions across which employees may be expected to advance. For instance, the HRM
group might include the job titles of HR assistant, HR manager, and HR director. The
secretarial group might include secretarial clerk, principal secretary, senior secretary, and
administrative assistant.
The second step of supply forecasting is to estimate, within each job group, how many
current employees will remain in their positions during the planning period, how many will
move to
another position (e.g., through transfer, promotion, or demotion), and how many will leave
the organization. These predictions are partially based on past mobility trends (e.g., turnover
and promotion rates). The organization also should consider any plans for mergers,
acquisitions, unit or division divestitures, layoffs, retrenchments and downsizing, and even
hostile takeovers. When making its supply forecast, the organization also should look at
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specific individuals. Some may have already announced, for instance, that they are retiring
at the end of the year, returning to school in the fall, or getting married and planning on
moving to a different part of the country.
Computerized statistical packages are available to help estimate the flow of employees
through an organization. The estimates generated by these packages can be fairly accurate in
stable environments. When the environment is unstable, of course, these estimates are
suspect. For instance, an organization may base its estimates on past turnover rates, which
have been about 10 percent during each of the past five years. If the turnover rate were to
change drastically because of factors such as job dissatisfaction or down-sizing, the
organization would severely underestimate its future staffing needs.
Combining the results of the supply and demand forecasts within each job group derives
specific staffing needs. For example, consider a firm that currently employs twenty-five
secretaries. As the result of its supply forecast, the firm predicts that five of these secretarial
positions will become vacant by the end of the planning period because of retirements,
promotions, and so forth. Its demand forecast predicts that three new secretarial positions
will be needed during the coming period because of an increased demand for the company's
product. By combining these two estimates, the firm now realizes that it must hire eight new
secretaries (five to replace those expected to vacate their positions, plus three to fill the
newly created positions).
OUTCOMES OF THE HR
PLANNING PROCESS
When the HR planning process is completed, a firm must establish and implement HRM
practices in order to meet its human resource needs. Following is a brief overview of how
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HRM practices can help organizations to deal with anticipated oversupplies and
undersupplies of personnel.
When the results of demand and supply forecasting project an undersupply of personnel at
some future point in time, the organization must decide how to resolve this problem. The
solution may involve hiring additional staff, but there are other options. When HR plans
indicate an undersupply of employees, firms can recruit personnel to staff jobs with
anticipated vacancies. HRMS packages provide employers with capabilities to carry out
recruitment in all of its steps. The first step is to conduct a job analysis to determine the
qualifications needed for each vacant job.
The next step is to determine where and how to recruit the needed individuals. For instance,
a company must decide whether to fill its vacancies externally (i.e., from the external labor
market) or internally (i.e., from its own current workforce). When recruiting externally, an
organization should first assess its attractiveness in the eyes of potential applicants;
unattractive employers may have trouble generating a sufficiently large applicant pool. Such
employers should attempt to increase the number of people who are attracted to the
organization and thus interested in applying for a job there. This may be accomplished by
increasing starting pay levels and/or improving benefit packages. Another option is to target
certain protected groups whose members may be underemployed in the local labor market,
such as older, disabled, or foreign-born individuals.
Internal recruitment efforts can be improved through the use of career development
programs. When designing such a program, the organization should collect work history and
skill level information on each of its employees. Such information would include age,
37
education level, training, special skills (e.g., foreign language spoken), and promotion
record, and should be stored on a computer. This employee information allows the
organization to identify current employees who are qualified to assume jobs with greater
responsibility levels. For instance, in departments where skilled managers are in short
supply, a management replacement chart can be prepared that lists present managers,
proposes likely replacements, and gives an estimate of when the replacement candidate will
be trained and available to fill an open position.
Instead of hiring new workers to meet increasing demands, an organization may decide to
improve the productivity of the existing workforce through additional training. Other
options include the use of overtime, additional shifts, job reassignments, and temporary
workers. Another option is to improve retention rates. When this aim is met, firms will have
fewer job vacancies to fill.
Retention rates can be improved at the outset of the employer/employee relationship, when
applicants are first recruited. Retention rates are likely to improve when applicants are given
a realistic preview of what their jobs would actually be like (warts and all), rather than an
overly glowing one.
Workers want to feel valued and needed by their organization. In a climate characterized by
mergers, acquisitions, and layoffs, many workers feel very insecure about their jobs.
Employees with such feelings often begin shopping around for other jobs. These fears can
be eased by implementing HR plans for training and cross-training. Such plans allow
workers to perform a variety of functions, thus ensuring that they have the necessary skills
to continue making contributions to the firm. Management training also is crucial in this
regard. Organizations must train managers to be good supervisors. Poor "people
management" is a primary cause of voluntary turnover. Managers at all levels should know
what is expected of them, in terms of managing people instead of just managing budgets.
Companies also can improve retention rates by creating a work environment that encourages
employees to participate actively in the company's total welfare. Workers want recognition
for their contributions to organizational progress, but this recognition must be tailored to the
38
workers' individual needs. While some workers may be motivated by monetary rewards,
others seek recognition by peers and managers, feelings of accomplishment, or job
satisfaction.
Workers now demand more flexible schedules to best fit their lifestyles. Organizations can
improve retention rates by implementing programs to accommodate these needs, such as job
sharing, shortened workweeks, and telecommuting via computer and modem.
Finally, companies also can improve retention rates by offering attractive benefit packages,
such as generous retirement plans, stock ownership, health and dental insurance, and
employee discount programs. Many firms are now offering "cafeteria plan" benefit
packages, which are tailored to the specific needs of each of their employees.
HUMAN RESOURCE
MANAGEMENT SYSTEMS
Several major software companies provide HRMS packages. SAP, PeoleSoft, Oracle, and
ADP are the largest. Depending on the company's needs and size, package options may
include some or all of the following services:
39
Time-off management
Organization management
Payroll
Training
401k plan administration
The opportunities to add more services are endless and continue to improve.
For most companies, the hardware and software needed to run these programs are fairly
standard. Hardware and software is dependent on the complexity of the HRMS package;
more complex HRMS packages require more hardware (e.g., server space and speed).
HRMS technology costs vary considerably, depending on the size of the company and its
HR needs. Costs for deploying a comprehensive HRMS package include license fees,
implementation, technology, training, and maintenance. Costs typically range from $300 to
$700 per employee as an initial investment for companies with more than 1,000 employees.
Smaller companies may decide it is better to rent the application than buy it. Research has
found that most companies can recoup HRMS costs within three years of system launch,
based on process efficiencies alone.
The value of HRMS results from a reduction in HR support costs, based on efficiency
improvements. "Hackett's benchmark for the average annual cost of HR services per
employee is approximately $1,900, with a best practice goal of less than $1,200"
(Hamerman). By eliminating paper and process inefficiencies, companies can expect
additional cost reductions while improving service and becoming more efficient. There are
many other benefits of HRMS. Giga Information Group believes that HR departments can
reduce time spent on administrative work by 40 percent to 50 percent, resulting in either the
elimination of headcount or the redeployment of effort to higher value tasks, such as
decision support and employee development.
40
performance/competency management, employee development, and employee customer
service. By executing well in these areas, companies can reduce employee turnover, reduce
hiring costs, and improve individual performance.
ADP offers a comprehensive suite of software that can run on almost all modern operating
systems. A major player in the HRMS business is PeopleSoft. Acquired by Oracle Corp. in
January 2005, PeopleSoft puts it focus on one complete HRM product line. This suite not
only works in the HRM arena, it also allows employers to buy modules for CRM, SCM, and
many other areas. There are three versions of the company's Enterprise suite: Enterprise,
EnterpriseOne, and PeopleSoft World.
According to PeopleSoft, the Enterprise program is designed with the Internet in mind, and
allows employers to:
Plan the workforce needed to carry out an organization's business objectives, attract
the right people, and provide them with the tools they need to be productive.
Assess workforce skills and design learning and performance programs that develop
people in alignment with their career paths and corporate objectives.
Optimize a global workforce by putting the right people in the right jobs at the right
time. This includes tracking the workforce and monitoring performance.
Plan compensation and reward structures that align the workforce with corporate
objectives. This includes linking the right employees with the right types of
compensation, and rewarding them with a total package that maximizes efficiency,
reduces costs, and increases overall performance.
EnterpriseOne works with the original Enterprise program and also let employers:
41
Simplifying the employee evaluation process through automated workflow, which
automatically alerts employees and managers about scheduled performance reviews.
Helping managers to understand discrepancies between employees' expected and
actual performance through built-in competency gap analysis tools.
Providing true exception reporting with flexible reporting tools that summarize data,
embed workflow messaging, and populate spreadsheets.
Finally, PeopleSoft's PeopleSoft World program was developed to help small businesses
cope with the cost of changing hardware; it is built to work with the IBM iSeries. According
to PeopleSoft, this system offers:
All PeopleSoft Software is built on a Web-based platform, enabling "portal" technology. For
both Enterprise and EnterpriseOne, portals are available to connect with employees over the
Web. Technology continues to evolve, and HR is no exception. One of the fastest growing
trends in HRMS is Web-based training/e-learning. E-learning tends to be far more affordable
than classroom learning, and a higher degree of focus results in time savings. Not all e-
learning is the same: some courses are self-paced with tutors available, some are instructor-
led in real time, and some allow for student interaction.
42
Another HRMS trend is the use of online surveys. This allows companies to get fast
information on their employees, policies, procedures, competition, and anything else they
decide to survey. This also gives employees a sense of belonging and contributing to their
company. Online employee surveys usually have an 80 percent return ratio, which is much
higher than paper surveys.
Employees are becoming more self sufficient in the workplace because of HRMS and the
growth of technology. They are able to answer questions, down-load forms, enroll in
benefits, change payroll options, and complete training on their own. This saves both time
and money. An employee does not have to make several phone calls in order to speak with
the one person who knows the answer to their questions. Answers are readily available,
usually on the company intranet. This also frees up HR to focus on more profitable activities
for the company, such as recruiting and employee development.
Another growing trend includes improved methods for monitoring and managing employees'
use of the Internet. This helps management to improve productivity, reduce legal liabilities,
and control IT costs. Companies are blocking e-mail that may be offensive in order to reduce
legal liabilities. They also are blocking Web sites that are inappropriate for workplace
viewing. This has improved productivity by reducing non-productive activities.
HRMS providers have products for companies of all sizes. These providers profit by
maximizing the services they offer. Therefore, they are going to target large companies that
need more support. However, providers are still interested in small companies, and those
that will need more support as they grow.
As the need for corporate cost-cutting, efficiency, and productivity becomes more important,
the HRMS industry is going to continue to have strong growth potential. Not only can
HRMS help with employee administration from recruiting to benefits, it can save companies
thousands of dollars by lowering workforce and employee turnover levels. By 2005, the
corporate world had only seen the beginning potential of HRMS.
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objectives. Human Resources Information Systems (HRIS) is an integration of HRM and
Information Systems (IS). HRIS or Human resource Information system helps HR managers
perform HR functions in a more effective and systematic way using technology. It is the
system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent
information regarding an organization's human resources. A human resource information
system (HRIS) is a system used to acquire, store, manipulate, analyze, retrieve, and
distribute pertinent information about an organization's human resources (Tannenbaum,
1990). The HRIS system is usually a part of the organization's larger management
information system (MIS) which would include accounting, production, and marketing
functions, to name just a few. Human resource and line managers require good human
resource information to facilitate decision-making. An extensive study by Towers Perrin
study revealed the following benefits of
Application of HRIS
HR planning
Succession planning
Work force planning
Work force dynamics analysis
Staffing
Applicant recruitment and tracking
Employee data base development
Performance management
Learning and development
Compensation and benefits
Pay roll
Job evaluation
Salary survey
Salary planning
International compensation
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Benefits management
Develop innovative Org. Structure
Develop IT
HRIS Benefits:
HRIS has showed many benefits to the HR operations. A few of them can be detailed as;
HRIS software:
45
CORT: HRMS: applicant tracking, Attendance tracking and
calendars, Wage information, Skills tracking, Reports-to information,
Status tracking, Job history tracking, Cost center tracking,
Reviews and tracking, Mass update and change tools etc.
HRSOFT: Identify and track senior managers, Assess management
skills and talents, Generate a wide range of reports, resumes,
employee profiles, replacement tables and succession analysis reports,
Identify individuals for promotion, skills shortages, unexpected
vacancy, Discover talent deep, Competency Management, career
development, align succession plans etc.
Human Resource MicroSystems: sophisticated data collection and
reporting, flexible spending accounts, compensation, employment
history, time off, EEO, qualifications, Applicant/Requisition Tracking,
Position Control/Succession Planning, Training Administration,
Organization Charts, HRIS-Pro Net (employee/managerial self-
service), HR Automation (eNotification and eScheduler), and
Performance Pro (performance management)
ORACLE- HRMS: Oracle iRecruitment, Oracle Self-Service Human
Resources, Payroll, HR Intelligence, Oracle Learning Management,
Oracle Time and Labor
PEOPLESOFT: Enterprise eRecruit, Enterprise Resume Processing,
Enterprise Services Procurement, Workforce Planning, Warehouse
SAP HR: Human Capital Management (HCM) for Business, All-in-
One: Rapid HR,
SPECTRUM HR: iVantage® and HRVantage®. iVantage is a Web-
based HRIS product designed for organizations with up to 10,000
employees.
VANTAGE: HRA: 'Point-and-Click' report writing, internal
Messaging System for leaving reminders to yourself, to someone else
or to everyone using HRA - very useful for Benefit Applications,
Disciplinary Actions, Special Events, Employee Summary Screen for
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Basic, Leave (Absenteeism) and Salary/Position History, skills &
training module, Leave Tracking Module
Critical Analysis
Although almost all HR managers understand the importance of HRIS, the general
perception is that the organization can do without its implantation. Hence only large
companies have started using HRIS to complement its HR activities.
But HRIS would be very critical for organizations in the near future. This is because of a
number of reasons.
The primary reason for delay in HRIS implementation in organizations is because of the fear
psychosis created by "technology" and "IT" in the minds of senior management. They may
47
DATA
ANALAYSIS
&
INTERPRETATIONS
1) DATE OF BIRTH
DATA NO OF EMPLOYEES
MENTIONED 70
NOT MENTIONED 20
WRONGLY
MNETIONED 10
TOTAL EMPLOYEES 100
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Out of Sample Size of 100 Employees, 70 mentioned date of birth correctly,
20 of them did not mention date of birth at all , 10 of the employees
mentioned wrong date of birth . Correct mentioning of birthday would facilitate
correct date of retirement
2) DATE OF CONFERMATION
DATA NO OF EMPLOYEES
MENTIONED 65
NOT MENTIONED 23
WRONGLY MENTIONED 12
TOTAL EMPLOYEES 100
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Out of Sample Size of 100 Employees , 65 mentioned date of confirmation
correctly , 23 of them did not mention date of confirmation at all , 12 of the
employees mentioned wrong dates of confirmation.
Information about employees leaves & benefits
3) QUALIFICATION
DATA NO OF EMPLOYEES
MENTIONED 60
NOT MENTIONED 20
WRONGLY MENTIONED 20
TOTAL EMPLOYEES 100
50
Out of Sample Size of 100 Employees , 60 mentioned qualification details
correctly, 20 of them did not mention Qualification at all , 20 of the
employees mentioned wrong Qualification details.Correct mentioning of
Qualification would facilitate correct information on Employee Performance
Appraisal & Career Growth
4) PREVIOUS EXPERIENCE
DATA NO OF EMPLOYEES
MENTIONED 55
NOT MENTIONED 15
WRONGLY MENTIONED 30
TOTAL EMPLOYEES 100
51
Out of Sample Size of 100 Employees, 55 mentioned Previous Experience, 15
of them did not mention Previous Experience , 30 of the employees mentioned
wrongly.Correct mentioning of Previous experience would facilitate on
Employees Performance Appraisal & Career Growth
5) NOMINEE DETAILS
DATA NO OF EMPLOYEES
MENTIONED 50
NOT MENTIONED 35
WRONGLY MENTIONED 15
TOTAL EMPLOYEES 100
52
Out of Sample Size of 100 Employees , 50 mentioned date of birth correctly ,
& 35 of them did not mentioned date of birth at all , 15 of the employees
mentioned wrong dates of birth.Correct mentioning of Nominee details would
facilitate correct PF &GRADUITY distribution at the time of retirement of the
employee or in case of payment of benefits on the death of employee while
in service.
6. When employees are sponsored for training, they make it seriously and try to learn
from the programs they attended.
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Interpretation:
From the above diagram it is clear that only 60% of employees take it seriously and learn
from the programs attended
7. Employees returning from training programs are given opportunities to try out what
they have learnt.
54
Interpretation:
From the above graph it is clear that most of the employees are given opportunities to try out
what they have learnt.
8 The top management of this organization goes out of its way to make sure that
employees enjoy their work.
55
Interpretation:
Thus, we can conclude that people in this organization goes out to make sure
that employees enjoy their work.
.
9 The top most believes that human resources are an extremely important resource and
that have to be treated more humanly.
56
Interpretation:
thus, we can conclude that people in this organization believe that employees are important
resources.
57
Interpretation:
Most of the sub-ordinates will see the development as an important tool.
58
Interpretation:
From the above observations we can conclude that personal policies offered by the
corporation are helping employee development only some times true.
12: The top management is willing to invest a considerable part of their time and other
resources to ensure the development.
59
Almost always true 2 5
Interpretation :
According to the above observation the corporation’s are feeling top management plays
major role in the development of employees by investing their valuable time.
13: Senior officers/executives in this organization take active interest in their juniors and
help them to learn their job.
60
Interpretation:
Thus it is said that most of the senior executives in the organization take interest in their
juniors to learn their job.
14: People lacking competence in doing their jobs are helpful to acquire competence
rather than being left unattended.
61
Interpretation:
According to the above observation people lacking competence in doing their jobs are
helped to acquire competence.
15: Managers in this organization believe that employee behavior can be changed and
people can be changed and people can be developed at any stage of their life.
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Interpretation : Managers believe that people can be changed at any stage.
SALARY DISCRIPENCIES:
Purpose:
While verifying the data of the employees from the personal files to SAP
information system , the researcher found some salary discrepancies of employees.
The researcher took the initiative to rectify the salary discrepancies of the
employees.
The report consists of the project that we had successfully completed . It is
a report about the salary discrepancies of employees .
The major purpose of the project is to rectify the salary discrepancies (i.e,)
63
the employees who are getting less salary than what they are supposed to
get are been considered & the information about those employees are
submitted to the management.
Procedure:
The following is the procedure of preparing the report of the employees
who are getting less salary that which they are supposed to get. The main
information to be collected relating to the reports is
From the personal files :
Date of joining
Qualification(Diploma, non Diploma) etc
The designation of the employee in his previous experience
Information from SAP
The present salary of employee
Contract validity dates
There are three types of employees , they are regular probationer and
consultants the above data is collected and put together in the MSEXCEL
sheet and the salaries are calculated according to the company supposed to
get are considered and the differences between the actual salaries they
should get the salary they are getting is calculated .The report of this
individual employees are submitted to the management.
The MS Excel sheet consists of the contract end date as per the letter,
retainer ship fee. CCA & salary per month with the help of this information
the differences as per present salary & eligibility salary is been calculated
according to the salary matrix prepared by the company.
This is the salary matrix in which the employee’s salaries are mentioned according to their
qualifications, designations and ranks prepared by the organization.
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NON- DIPLOMA
DIPLOMA
JCO 10 p/ m 12 p/m + CCA = Total
(Junior Commission Retainer ship
Officer)
NOTE:
1.This grid is based on the current salary grid for FEOs
2.Compensation for these FEOs will be in the form of a retainer ship paid
monthly.
3.List of cities along with their CCAs enclosed.
4.A diploma from the services will be considered equivalent to an external
diploma.
5. graduation other than Bsc /AMIE will be considered equivalent to a
diploma
The retainer ship to the employees also includes CCA (i.e.,) city compensation
allowance as per the government gazette . The CCA will be unique from city
to city.
Andhra Hyderabad 25
Pradesh
65
Andhra Vishakhapatnam 15
Pradesh
Vijayawada 15
Andhra
Pradesh
Kurnool 10
Andhra
Pradesh
Andhra Adilabad 10
Pradesh
Cuddapah 10
Andhra
Pradesh
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FINDINDS,
SUGGESTIONS
AND
CONCLUSION
FINDINGS
FINDINGS:
67
Stored and maintained
SUGGESTIONS
Stress Management
In the growing complicated work environments , people need relaxation ……so
68
organization have to cope up with stress management to overcome the
Knowledge Management
all the teams and gaining extra knowledge , which can lead to the
CONCLUSION
69
very personal linkage which in itself is launch able achievement for
organization.
For any organization the employee-relation management is the main criteria in
the
Challenging organizations , where there is constant up gradation of technologies
like
Re-engineering business process and enterprise resource planning , which
formulates
SAP application . HR department is strengthening the connection towards the
employees.
In deed it was wonderful experience interaction with the employees in the
Organization in midst of pleasant work culture.
People only work through people . It is HUMAN RELATIONS that bind them
together horizontally and vertically in an organization . It is the right
motivational
efforts that keep efficacy of production.
It was my great experience to be associated with HERITAGE FOODS INDIA
LIMITED
and related to work on certain projects at all company , which were of
greatest
importance . I , was overwhelmed to work under concrete team , who were
highly
experienced in their phenomenal careers.
The project I have undertaken at HERITAGE FOODS INDIA LIMITED had given
me
good experience and good scope to implement the project experience I have
learned in the work environment and mark towards goal orientati
70
BIBILOGRAPHY
WEBSITES
www.google.com
www.heritagegroup.com
BOOKS
71
HUMAN RESOURCES MANAGEMENT
__ Pattnayak Biswajeet
ESSENTIALS OF HRM
__ Subba Rao
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Employees full name :
Designation :
Grade :
DOB(dd/mm/yy) :
DOJ(dd/mm/yy) :
Sex ( Male/Female) :
Marital Status :
Birth Place:
State :
73
3) Qualification Details
3) Address Details
74
5) Language Details (indicate against each language whether F-fluent, R-fair, S-
Slight)
Nationality :
75
Religion :
Native State :
Birth Place :
Height(cm) :
Weight(kg) :
PF No :
Cell No :
Pager No :
Marriage Date :
Identification Marks : 1)
2)
References
(Friends/Relations) : 1)
2)
Interests/Hobbies :
Details of Awards Won (if any) :
Physical Disabilities if any :
76
6) Additional Information ( This Space can be used for any additional information you
7) When employees are sponsored for training, they make it seriously and try to learn
8) Employees returning from training programs are given opportunities to try out what
8 The top management of this organization goes out of its way to make sure that
9 The top most believes that human resources are an extremely important resource and
managers/officers.
12: The top management is willing to invest a considerable part of their time and other
13: Senior officers/executives in this organization take active interest in their juniors and
14: People lacking competence in doing their jobs are helpful to acquire competence
77
15: Managers in this organization believe that employee behavior can be changed and
people can be changed and people can be developed at any stage of their life.
Date :
___________________
(Signature of employee)
78