ASSIGNMENT

ON
HRD pratices in fmcg companies
(HRM 332: Human Resource Development, 3nd semester)

Submitted to:

Dr. Padmalita Routray

(Faculty, Business Management Department)

Submitted by

Name Roll no.

Lipsa Mohanty 13201FM093014

FAKIR MOHAN UNIVERSITY

VYASA VIHAR
BALASORE
INTRODUCTION:

An organization is formed for the fulfillment of certain objectives like

earning a desired rate of profit on investment, exploitation of certain natural
resources, development of a given geographical area, and supplying to the
public some essential goods or services. Machines, materials, money and all
other non-human resources are the tools and aids that man uses to achieve
his tasks. Thus, a proper selection of men is very much important for
management of an organization. Every Company need to be a proper person
with technical knowledge as well as individual too. 
 
However this is the most difficult of all the management tasks in an
organization. Some people also say that ‘management’ means ‘managing
men tactfully’. One often comes into contact with the personnel department
of one’s office, for example, for selection, placement, training, discipline,
grievance handling, wage administration, dismissal, etc. However, there are
certain aspects of the work of a personnel department which may not be
very obvious. When a company is doing term life insurance business online
or when they have paperless officer, personal management may not be very
obvious.
 

Fast moving consumer goods:

Fast Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG)

are products that are sold quickly at relatively low cost. Examples include non-
durable goods such as soft drinks, toiletries, grocery items etc. Though the absolute
profit made on FMCG products is relatively small, they generally sell in large
quantities, so the cumulative profit on such products can be large. The term FMCG
refers to those retail goods that are generally replaced or fully used up over a short
period of days, weeks, or months, and within one year. This contrasts with durable
goods or major appliances such as kitchen appliances, which are generally replaced
over a period of several years. FMCGs have a short shelf life, either as a result of
high consumer demand or because the product deteriorates rapidly. Some FMCGs
– such as meat, fruits and vegetables, dairy products and baked goods – are highly
perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks
and cleaning products have high turnover rates.

The following are the main characteristics of FMCGs:

 From the consumers' perspective:

o Frequent purchase
 o Low involvement (little or no effort to choose the item -- products
with strong brand loyalty are exceptions to this rule)
o Low price
 From the marketers' angle:
o High volumes
o Low margins
o Extensive distribution networks

o High stock turnover

THE GENERAL HRD PRACTICES:

Of all the resources, ‘human resource’ is the most significant and the only
active factor of production. So developing human resources, upgrading their skills
and extending their knowledge and competencies would lead to organizational
development. Therefore, human resource development is the key to enhancing and
effective utilization of intellectual, technological and entrepreneurial skills of
human resource.

Human resource development is a multipurpose process. Following are some

important functions which are done by the HRD department of every organization.

1)Recruit and selection.

2) Training or other discipline (Cross Training).

3)Performance appraisal of employees.
4)Careeer development of employees.
5)Feedback system of employees.

6)Councelling of the employees.

7) Running own business - Employee survey.
8) Ownership of Business- Job rotation.
9) Training to learn multiple skills.
10) Open culture/caring environment.
11) Focus on high performance.
12) Hiring the smartest people.
13) Openness & transparency
14) Knowledge sharing sessions
15) Health café, yoga classes. Stress management..
16) Compassionate leave.
17) Behavioural Training programme.

Growing trends of FMCG:

With the technological advancement, the needs and demands of consumer are
also growing and because of this the FMCG industry is also booming these days.
The fast moving consumer goods industry or the Consumer packaged goods, deals
usually with the manufacture, division and promotion of packaged goods for all its
customers. This business is based on building influential brands and attaining an
elevated level of distribution. Global power brands are the choice of various
multinational companies.
The industry deals with those goods that are regularly consumed by the
consumers and recently it has also launched its operations, supply chain,
production, general management etc. It provides a lot of profits amongst many
manufacturers thus, the competition between is increasing day- by- day. It is
estimated that if more and more investors will keep on investing in this field, it will
get double till 2010.
There are many products that it deals in including food stuff and dairy
manufactured goods, glassware, pharmaceuticals, electronic appliances , plastic
products, printing products, household products, photography, tea, coffee, cold
drinks, greeting cards, gifts, detergents, shampoos etc. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products and drinks,
although these are often categorized separately. The main factor that has made this
industry highly competitive is the solid chain of distributors. Not only this, the low
operational cost has made companies like General Mills, Sara lee, Unilever, Mars,
Coca cola, Carlsberg, Procter & Gamble, Kleenex, Nestle and etc very successful.
Not only has the distribution contributed in this process but, various suppliers and
wholesalers plays a major role as they are the one's who provides various goods to
the consumers.It provides a lot of profits amongst many manufacturers thus, the
competition between is increasing day- by- day. These people make a lot of profit
as they themselves decide the prices of various goods when they are sold. More
and more people have started believing on these products not just because they are
cheap but, are also hygienic. More and more people these days have started
involving themselves in this field as; it creates tremendous job opportunities for
them. It is a steady, diverse and a highly profitable industry where a person can do
a lot of work. The jobs in this field range from sales and supply chain, investment,
promotion, H.R development, and general management. It also allows one to trade
directly with the various traders online. Here, the automated system allows one to
make his selling decisions in a quicker time, low effort and cost. It enables to sell
the products instantly to various chain stores, buying groups and individuals in a
single click.
Thus the function of CPG plays an important role by producing strong
economic situation as well as by providing appropriate goods; as a result it is
beneficial to get acquainted to consumer packaged goods.

HR TREND IN FMCG:

HR in FMCG firms progressively being pushed down the line, providing an

opportunity to build paartnership and ensure bbusiness units exibits a level to self
management, when it comes to HR responsibbility.

A recent survey of FMCG companies found that even in companies with

several sites HR still commonly remains a centralized function. As company size
increases to more than1000 employees, HR trends to take on a more decentralized
structure, often with site HR managers reporting into a central HR head office. The
survey examined the hr practices of 58 FMCG companies such as Cadbury
schweppes, coca-cola amatil, colgate-pamolive, Glaxo smith kline, Lion Nathan
and Uniliver.

The survey also revealed that paid parental leave is becoming common
place, with 54% of FMCG companies providing parental leave for female with
35% also providing a similar policy for male, another 21% indicated an intention
to introduce paid parental leave in the next 12 months.
 Financial incentives, training and development and career development
opportunities rated as the most effective retention strategies, while the median staff
turnover rate of FMCG firms was 11%.

The survey found that majority of FMCG Firms within Australia have a
formal redundancy policy. Interestingly these policies are generally not written into
employees contracts and two-third of firms do not publicize the fact that they have
redundancy policies.

TRAINING SYSTEM IN FMCG SECTOR:

Training is a subsystem of an organization. It ensures that randomness is

reduced and learning or behavioral change takes place in structured format.
FMCG Sector is the most booming sector in the Indian economy and is expected to
reach US$ 175-200 billion by 2016. With this rapid expansion and coming up of
major players in the sector, the need of human resource development has
increased. Lack of skilled workers is the major factor that is holding back the
FMCG sector for high growth. The sector is facing the severe shortage of trainers.
Also, the current education system is not sufficiently prepared to address the new
processes, according the industry majors. Learning is an integral part of life at all
FMCG Sector & there are many ways in which an employee can develop his skills,
both professional & personal. There are different types of training programmes
given to the employees in FMCG sector. These are follows:

On the job

One'll learn much of what he need to know by working with knowledgeable

colleagues and receiving regular coaching and feedback. Wherever he join, in
whatever capacity, he'll have a wide variety of experiences developing skills
relevant to his job and giving him an overview of how his company works.

Professional skills

Specific programmes ensure one build expertise in his chosen career. The courses
often use e-learning that enables one learn at his own pace and take control of his
development. In some areas one can study for professional qualifications and, as he
progress, he'll develop his leadership capabilities.

Continual update
function Each has its own Academy – a team that continually updates its
professional learning curriculum. E-learning modules are then made available on a

dedicated intranet portal. Here one'll also find the very latest news, articles and
thinking. Essentially, everything he need to keep in touch with the business.
RECRUITMENT AND SELECTION PROCESS IN FMCG
COMPANIES:

Recruitment is an important part of an organisation’s human resource

planning and their competitive strength. Competent human resources at
the right positions in the organisation are a vital resource and can be a core
competency or a strategic advantage for it.
FMCG Careers offers a comprehensive recruitment and selection service
for positions within the fast moving consumer goods industry, covering
the food, beverage, consumer health care, and personal and household care
sectors.
Matching applicants with the right positions is a complex process . If it is
to be achieve satisfying and long-term results for both our clients and job
applicants some skills must be needed. These are as follows:
1) Good numerical skills,
2) Good communication and organizational skills are all essential for
a successful career in this industry.
3) Key skills also depend upon the type of position one wants to
pursue, i.e. marketing, human resources, finance, etc
The recruitment process, therefore, centres on the use of job competencies
and behavioural assessment to ensure the selection of the highest calibre
of candidates to meet our clients' needs across the following disciplines
 Sales and Customer Service
 Marketing and Innovation
 Human Resources
 General Management
 Finance and Administration
 Operations and Supply Chain
 Technical Services
 Information Technology

The organization Glaxo SmithKline consumer Health Care follows some

critical HR Processes to hire the employees which are alligned to the
leadership frame work that are:

 Self preference, motivation

 Business execution- skill for running to a business
 Technical and specialist expertise.
 Leadership behaviour.

PERFORMANCE APRISAL SYSTEM IN FMCG:

 REFERENCE

 http://top-ten-hr-practices.html
 www.citehr.com