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SUBMITTED TO Dr. M. G. Jomon By: Pallavi Priya NA11028 PGP-CEM11

HRM ASSIGNMENT

Corporate Profile
Cafe Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore ISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of Indias leading coffee exporters with clients across USA, Europe & Japan. Cafe Coffee Day (CCD) pioneered the cafe concept in India in 1996 by opening its first cafe at Brigade Road in Bangalore. Till about the late 1990s coffee drinking in India was restricted to the intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed to instant coffee) coffee cafe culture in neighboring international markets grew, the need for a relaxed and fun hangout for the emerging urban youth in the country was clearly seen.

Human Resources
With the boost in the number of their retail outlets, Caf Coffee Day had to concentrate on the quality and quantity of their human resource in order to meet up with the set standards. They make sure that the employees all across the country are well trained and provide consistent services at every outlet. Responsibilities of the Sr. Human Resource Manager Workforce planning & employment:

Analyze and set targets. Establish recruitment strategy. Monitor supply of personnel. Collaborate with senior management on offer management. Orchestrate and coordinate workforce reductions done on group basis and individually.
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Final interviews, Salary negotiation & Fixation for Support departments.

HR Operations:

Develop HR practices & policies in conjunction with management Monitor compliance, HRIS /affirmative action. Propose and negotiate settlements with vendors. Design & implement employee reward management program. Supervise employee corrective procedures including disciplinary action, performance management, employee coaching, employee assistance, and training.

Training: TNA

Identify and execute external training programs. Post training analysis.

Grievance Handling:

Serve as an escalation point for personnel and employee relations issues. Internal investigator and intervener for alleged employee misconduct or dissent. Orchestrate intervention including but not limited to cross-cultural orientation, sexual harassment and on-the-job employee development programs.

Performance Management:

Review Asst. Managers, Caf Managers and support staff. Analyze appraisal methods to balance and support the needs of the supervisor in conjunction with the need for employee recognition and development.

Upward & Downward Communication:

Responsible for company communications to disseminate announcements related to organizational restructuring and reductions, employee entry, promotions & exits. Develop and implement daily reconciliation and reporting model to track operations.

Personnel Management:

Career planning & counseling. Succession Planning. Planning and scheduling work assignments to ensure proper distribution of workload for team members. Monitor team members productivity and recommend improvements to enhance productivity. Managing effective lines of communication in the region.
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HRM ASSIGNMENT

Monitored exit procedures to better retain key employees. Analyze unprecedented exits.

Authority:

Salary negotiation & fixation Managers. Signatory Authority for official communication from Executive until Managers. Approve travel budgets for team. Approve Budgets for regional HR initiative.

The HRM Processes:

Recruitment & Selection: It is the process of differentiating between applicants in order to identify those with a greater likelihood of success in a job. The role of selection in an organizations effectiveness is crucial for at least two reasons; first work performance depends on individuals and second because of the costs incurred in hiring individuals is enormous for an organization. The best way to improve performance is to hire the people who have the competence and the willingness to work. Arguing from the employees viewpoint poor or inappropriate choice can be demoralizing to the individual concerned and de-motivating for the rest of the workforce. The cost of searching and training individual may range from Rs. 2,50,000 or more. Costs of wrong selection are even greater. Selection is a long process commencing from the preliminary interview of the applicant and ending with the contract of employment. The process differs among organizations and between two different jobs within the same organization. Selection procedure for senior managers is long-drawn and rigorous but on the other hand for shop floor workers it is simple and short. Caf Coffee Day employs 90 deaf people and plans to add 30 during the current quarter.

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HRM ASSIGNMENT

Caf Coffee Day is expanding at a phenomenal rate. Thus the need for right people, in the right place at right time is also increasing. In order to meet the demand for efficient and effective workforce, Caf Coffee Day has adopted the correct recruitment and selection procedures. Sources of recruitment: Caf Coffee Day has different sources for recruitment depending on the job profile in demand. For Team Members the sources are: 1) In store Posters 2) Referrals and Walk- ins Recruitment and selection process: For posts of team members the following rounds take place: 1) Psychometric tests, Behavioral Intelligence Test, Logical thinking &Comprehension Test. 2) Application blank. 3) Personal Interview, Operations Interview, Regional Manager Interview.
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HRM ASSIGNMENT

For Area Manager: Recruitment and selection process: 1) Collection & review of curriculum vitae 2) Personal interview with Regional HR Manager 3) Personal interview with GM- HR. Training & Development: To ensure consistent employee performance, training and development policies are very important- even more in service sector organizations. Caf Coffee Day has set 12 days rigorous training procedure at their office in Bangalore for all the assistant managers. Whereas all the team members undergo a 3 days training at respective head offices in North or South India. Employee working hours: The working hours are split into convenient shifts spread over 8:30 am to 10:30 pm. Night drops are provided for late evening shifts. Employee code of Conduct: After substantial efforts Caf Coffee Day has been able to convey to their staff (the ones who serve food) that they are doing a job and are at par socially with many consumers. Their attitude and communications is kept up to mark. Along with cleaning the table well, their employees communicate with the consumers on one to one basis. It is a cultural shift; it is a huge responsibility as, in India you do not look at the people serving at your table as your peer. Their employees are like friend to the customer but at the same time they know about the international standards of hygiene and cleanliness and personal grooming. Promotion Policy: Caf Coffee Day prefers promoting from within, rather than externally. Performance Appraisal: Performance management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals' performance and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity. The immediate superior carries out the performance appraisal at Caf Coffee Day every 6 months.

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HRM ASSIGNMENT

Employee Turnover & Retention: Caf Coffee Days current rate of Employee Turnover is about 9%. The reason behind this is the people between the age group of 19-24 who do not see their job as permanent means of income. They are not committed towards the organization.

Different HRD systems and their current status:

Sl. No . A 1 2 3 4 System SystemFollowed (yes/No/Sometimes) Challenges to HR

Career system Manpower planning Recruitment Career Planning Succession planning Yes Yes Yes Yes Very frequent, as attrition rate very high. Difficult due to high attrition rate. Subordinates given the role once seniors leave and before a new employee is hired. Only at the higher level

5 B 1

Retention Work system Role Analysis

Yes

Yes

Is very important due to high customer interface. But not properly done at staff or team member level.

Role efficacy

Yes

3 4

Performance plan Performance guidance feedback

Yes & Yes

Performance appraisal

Yes

Done based on the profitability of the outlet/Area income

Promotion

Yes

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HRM ASSIGNMENT

7 8 C 1 2

Job rotation Reward Development System Induction Training

No Yes Have various bonuses.

Yes Yes Training provided at every level including staff.

3 4 5 6 7 8 D 1

Job enrichment Self learning mechanism Potential appraisal Succession development Counseling Mentor system Self renewal Survey

No No Yes Yes No Yes Only for high ups. Only for senior management

Yes

Conducts Surveys and decision taken based on them

2 3

Action research

Yes At senior management level

Organizational development Yes interventions Organizational retreats Culture system Vision, Mission, Goal Yes Yes

4 E 1

To be the best Cafe chain by offering a world class coffee experience at affordable prices.

2 3

Values Communication

Yes Yes Various employee engagement

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HRM ASSIGNMENT

programs are held 4 5 6 Get together & Celebration Task forces Small groups Yes Yes Yes During festive seasons

Evaluation:
The attrition rate is very high in this company due to the workforce being very young, mostly in the age group of 19-25 at the staff and team level. This is where most of the manpower training on customer service and service quality is provided and the high attrition rate makes training a very expensive and tedious affair. Various employee retention plans like performance bonuses and Staff of the week programs have also failed to lower the attrition rate by an effective amount. Hence, it indicates that a more employee engaging policy should be adopted to give the staff and junior team members a sense of ownership, and greater job satisfaction.

Suggestions:
Considering the fact that the selection procedure for the shop floor workers is short and not so rigorous, can be one of the reasons why the attrition rate is very high in this area. If the shop floor workers are under the impression that they can join and leave easily then the sense of commitment to the job will be very low, hence due care should be taken while selecting these people as they are the first customer interface that Coffee Day has and it leaves an ever lasting impression on the customers. An alternate suggestion would be that many of the F&B companies are hiring deaf and differently-able people under their CSR programs. Caf Coffee Day employs 90 deaf people and plans to add 30 during the current quarter. As, the attrition level for this group of people has been very low, due importance should be given to their training and skill development programs, the managers should also learn to communicate with them or hire managers who know the sign language to facilitate effective communication between them. Hence, I also suggest that hiring of deaf people should not just be done as a CSR activity but due consideration should be given to hire more of them and provide a good salary & conducive environment for such people to work and grow up the hierarchy so that they feel wanted and derive a sense of ownership from the job.
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