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DECLARATION

This is to declare that our team under the guidance of


Dr. Shekhar has completed the report work.
This project is solely the result of our combined efforts and has not
been submitted by anyone earlier either to this University/Institution
or to any other University/Institution for any purpose. The data
provided here are from some primary as well as some secondary
sources.

Date:
Sakshi Jain (09181)
Samta Gupta(09184)
Saurabh Srivastava(09189)
Shashi Kant Kumar(09195)
Shivi Bindra(09198)
Shradha Suman(09202)
Shweta Rai(09205)
Sonu Sharma(09213)
Vaibhav Jain(09230)
Ziauddin(09238)
Priyanka Sharma(09240)

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CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that students with Roll Nos.


BM-09181, BM-09184, BM-09189, BM-09195, BM-09198, BM-
09202, BM-09205, BM-09213, BM-09230, BM-09238, BM-09240
of PGDM 2009-2011 batch, I.M.S Ghaziabad, has done their project
headed “HUMAN RESOURCE DEVELOPMENT OF
PANTALOON’S BIG BAZAAR” under my supervision and
guidance.
During their project they were found to be very sincere and Attentive
to small details whatsoever was told to them.
I wish them good luck and success in their future.

Professor:
Dr. Shekher
(I.M.S Ghaziabad)

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ACKNOWLEDGEMENT

“GOING IS GETTING TOUGH, CURRENT IS TORRENTIAL.


SUCCESS IS NOT AFAR, JUST YOUR POTENTIAL”.

Following the word of this quote the project is being made.

This report bears the imprint of many people and without there
support it would not have existed.

We acknowledge our deepest thanks to our Project guide Professor Dr


Shekher for all their care and encouraging words and giving
suggestion at the crucial stages.

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INDEX
S.NO. TOPIC PAGE
1. Introduction 5
2. Industry Profile 7
3. Company Profile 10
4. Management Functions 12
5. Human Resource 15
Management
6. People Management 19
System
7. HRD of Big Bazaar 21
8. Employees Motivation 29
9. Work Culture 33
10. Customer Satisfaction 35
11. SWOT Analysis 36
12. Conclusion 38
13. Bibliography 39
INTRODUCTION

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Future Group is India’s leading business group that caters to the
entire Indian consumption space. Led by Mr. Kishore Biyani, the
Future Group operates through six verticals: Retail, Capital, Brands,
Space, Media and Logistics:

• Future Retail (encompassing all lines of retail business),


• Future Capital (financial products and services),
• Future Brands (all brands owned or managed by group companies),
• Future Space (management of retail real estate),
• Future Logistics (management of supply chain and distribution) and
• Future Media (development and management of retail media.

The group’s flagship company, Pantaloon Retail (India) Limited


operates over 5 million square feet through 400 stores in 40 cities.
Some of its leading retail formats include, Pantaloons, Big Bazaar,
Central, Food Bazaar, Home Town, EZone, Depot, Health & Beauty
Malls and online retail format, futurebazaar.com.

Future Group’s vision is to, “deliver Everything, Everywhere, Every


time to Every Indian Consumer in the most profitable manner.” The
group considers ‘Indian-ness’ as a core value and its corporate credo
is - Rewrite rules, Retain values.

PANTALOON RETAIL (INDIA) LIMITED


(Incorporated in the Republic of India with limited liability under the
Companies Act, 1956)

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From its beginning in 1987, they have today evolved as one of the
leading retailer and are among the pioneers in setting up a nation-
wide chain of large format stores in India. They believe that the
various initiatives taken by them have played a key role in enhancing
the standards of retail in the country. They believe their focus on
customers supported by systems and processes and a committed work
force are the key factors that have contributed to our success and will
help us scale up as we embark on our strategic growth plan.
Pantaloons is the first organized departmental store format targeting
the Indian middle class and upper class customers across age and
gender.

BIG BAZAR

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Big Bazaar is a chain of department stores in India currently
with 100 outlets. It is owned by Pantaloon Retail India Ltd, Future
Group. It works on the same economy model as Wal-Mart and has
been successful in many Indian cities and small towns. The idea was
pioneered by entrepreneur Mr. Kishore Biyani, the CEO of Future
Group. Currently Big Bazaar stores are located only in India. It is the
fastest growing chain of department stores and aims at having 350
stores by 2010.
Big Bazaar is the destination where you get products available at
prices lower than the MRP, setting a new level of standard in price,
convenience and quality.

INDUSTRY PROFILE

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Retail is India’s largest industry, accounting for over 10 percent of
the country’s GDP and around 8 percent of the employment. Retail
industry in India is at the crossroads. It has emerged as one of the
most dynamic and fast paced industries with several players entering
the market. But because of the heavy initial investments required,
break even is difficult to achieve and many of these players
have not tasted success so far. However the future is promising;
the market is growing, government policies are becoming more
favorable and emerging technologies are facilitating operations.

India has one of the highest savings rate in the world


with Rs 29 of every Rs 100 of its national income being
saved. These extremities leaves a lot of opportunity for
marketers, both Indian and international. One of the
key growth factors has been the shift to service sector,
which accounts for 50% of the total GDP. Led by
services such as IT, telecommunication, healthcare and
retailing, the services sector is likely to play an even
more important role in the Indian economy.

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India has a large number of retail enterprises. With
close to 12 million retail outlets India has one of the
highest retail densities in the world. In terms of the
structure, the industry is fragmented and
predominantly consists of independent, owner-
managed shops.

Some Key Facts:


•Retail is India’s largest industry accounting for over 10 percent of
the country’s GDP and around 8 percent of the employment.
•The market size of Indian retail industry is about US $312
billion.

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COMPANY PROFILE

Pantaloon Retail (India) Limited is India’s leading retailer


that operates multiple retail formats in both the value and
lifestyle segment of the Indian consumer market. Headquartered in
Mumbai, the company operates over 12 million square feet of
retail space, has over 1000 stores across 71 cities in India and
employs over 35,000 people. The company’s leading formats
include Pantaloons, a chain of fashion outlets, Big Bazaar, a
uniquely Indian hypermarket chain, Food Bazaar, a supermarket
chain, blends the look, touch and feel of Indian bazaars with aspects
of modern retail like choice, convenience and quality and Central, a
chain of seamless destination malls. Some of its other formats
include Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion
Station, Mobile Bazaar and Star Sitara (Beauty clinic). The
company also operates an online portal, Futurebazaar.com. A
subsidiary company, Home Solutions Retail (India) Limited,
operates Home Town, a large-format home solutions store,
selling home furniture products and E-Zone focused on catering
to the consumer electronics segment. Pantaloon Retail was awarded
the ‘International Retailer’ of the Year 2007, by the US-based
National Retail Federation, the largest retail trade association and
the ‘Emerging Market Retailer’ of the Year 2007 at the World

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Retail Congress in Barcelona.

Pantaloon Retail is the flagship company of Future Group, a business


group catering to the entire Indian consumption space. The group’s
subsidiary companies include, Home Solutions Retail India Ltd,
Pantaloon Industries Ltd, Galaxy Entertainment and Indus League
Clothing.

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MANAGEMENT FUNCTION

It was described by Henry Fayol in the year 1800 when he was the
CEO of a large mining company.
Fayol has noted managers at al levels operating in a for profit or not
for profit organization, must perform each of the functions of :

Planning

The organization’s long term goal is to capture a major pie in the


market share and earn good profits. For this purpose the organization
has:
• A Procurement plan where it procures its finished goods
(apparels) from various brand manufacturers.
• A outlet site selection plan (to open at convenient and profitable
location)
• A marketing plan where (Collect apparels, footwear etc from
companies and allocate store space etc., Advertising.)
• A finance plan on revenues and expenditure and how many
stores to open, how many brands to keep. Reducing inventory levels.

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Directing

• New products/ designs to be introduced (Quantity-wise and


variety-wise).
• Identification of proper stores location
• Continuous supply of inventories from suppliers (Preparation of
procurement schedule)
• Inventory planning, monitoring, and tracking of work in
process.

Coordinate and Controls

• Inventory control to keep the cost at optimum level. Monitoring


WIP
• Orders placed to the suppliers for inventories.
• Volumes of the orders from the customers that the company can
handle
• Organized reports at all levels.
• Competitors

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APPLYING MINTZBERG’S MODEL
Organization Pyramid

Where to Sales Personne


establish Profitabilit Projecti l
productio y on Planning
n unit projection
per store
Strategic
Level

Inventor Contracting &


y Relocating
Control control
Tactical Level
Sales
Establish region
linkages with
suppliers for Raw Analysi
Material
Establishi Employee
Employee
How to Manage
Figure 1: Organizational
ng marketPyramid
produce Stores
linkages Recordkeepi

Productio Marketin Operation Human


n g s Resourc

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WHAT IS HUMAN RESOURCE
MANAGEMENT?

The effective use of people to achieve both organizational and


individual goals. It is actually effective recruitment, selection,
development, compensation, and utilization of human resources by
organizations.

Before few years

H.R manager was only black box. Their role was more closely aligned
with personnel and administration functions.

• Potent
• Recruiting
• Hiring
• Training
• Organization Development
• Communication

New H R Role

• Coaching
• Policy Recommendation

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• Salary and Benefits
• Team Building
• Employee Relations
• Leadership

HRM HAS INCREASED IN


IMPORTANCE SINCE THE 1980’s.
WHY?

• Globalization
• Government regulation
• Stronger knowledge/research base
• Changing role for labor unions

Challenge of matching worker expectations with competitive


demands.

Human resources is an increasingly broadening term with which an


organization, or other human system describes the combination of
traditionally administrative personnel functions with acquisition and
application of skills, knowledge and experience, Employee Relations
and resource planning at various levels. The field draws upon
concepts developed in Industrial/Organizational Psychology
and System Theory. Human resources has at least two related

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interpretations depending on context. The original usage derives
from political economy and economics, where it was traditionally
called labor, one of four factors of production although this
perspective is changing as a function of new and ongoing research
into more strategic approaches at national levels. This first usage is
used more in terms of 'human resources development', and can go
beyond just organizations to the level of nations . The more traditional
usage within corporations and businesses refers to the individuals
within a firm or agency, and to the portion of the organization that
deals with hiring, firing, training, and other personnel issues, typically
referred to as `human resources management.

Key functions
Human resource management serves these key functions:

1. Recruitment & Selection

2. Training and Development (People or Organization)

3. Performance Evaluation and Management

4. Promotions

5. Redundancy

6. Industrial and Employee Relations

7. Record keeping of all personal data.

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8. Compensation, pensions, bonuses etc in liaison with Payroll

9. Confidential advice to internal 'customers' in relation to


problems at work

10. Career development

In a business where individuals comprise the principal asset, the


structure of the people pyramid influences the quality of knowledge
captured, the speed with which decisions are made and the morale of
the organization. Human Resource is one of the critical support
functions and forms another key element of the corporate backbone.
We have 7,379 employees as on September 30, 2005. We are a very
young and energetic organization with average employee age being
30 years.

We believe that service is our core philosophy and people are our
most important resources. Our attempt has always been to create an
environment where our employees feel pride of being called
‘Pantaloonians’.

Our Human Resource philosophy is driven through our ‘The BIG


BAZAAR People Management System’.

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BIG BAZAAR People Management
System

BIG BAZAAR People management system is built on 5 pillars


of people based growth:

a. Culture Building

b. Performance Management through Balanced ScoreCard

c. People Processes

d. Management Processes

e. Leadership Excellence

Organisation Structure
Our organization is headed by our Managing Director. We
follow an inverse pyramid structure; as a result decisions are taken
closest to the point of customer action. Sales executive are
encouraged to think customer first. They are empowered to run their
respective departments like ‘small siness owners’.

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Inverse Pyramid Structure

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HUMAN RESOURCE DEPARTMENT OF


BIG BAZAAR

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The HR department of Big Bazaar is very dynamic. Employees
are the biggest strength and asset of any organization and the HR dept
realises this very well.

This is very evident from the way the HR department handles


all its employees. They take utmost care to select, train, motivate and
retain all the employees. They have continuous developmental
programmes for all the employees. Currently Big Bazaar
Banashankri is employing 220 full time and 60 part time employees.
There are two shifts for the employees. The first shift employees
arrive at 10AM in the morning and leave at 7.30 in the
evening, while the second shift employees report at 12.30 in the
afternoon and leave at the time of Store closing (10pm).

For any hr activity one of the major activity is recruitment of the


employee. the following are the main sources through which big
bazaar recruit it employees.

Sources of Recruitment

a) Consultancy Services: For top level management,


employees are recruited through private consultants. They are

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usually appointed as Departmental Managers.

b) Walk-ins: This is the main source through which Big Bazaar


recruits its employees. People seeking job usually themselves
approach the HR department for job vacancy. Employees usually
selected from this source are appointed at the entry level as team
members.

c) Employee Referrals: This is the other main source through which


employees are selected. Candidates who have given their previous
employer as referrals are first interviewed and from their
previous employer, opinion is taken about their behaviour and
performance in the job. If they receive a positive opinion from their
previous employer they are selected.

d) Campus Recruitment: Young people bring new ideas and


fresh enthusiasm. Therefore Big Bazaar visits some of the reputed
educational institutions to hire some of the most talented and
promising students as its employees.Selection ProcedureThe
following is the selection procedure that the HR department practices
to hire its employees.

i) Interview: For entry level jobs, the candidates are interviewed by a


HR person. They are asked a few basis questions about their
education, previous work experience if any, languages known etc.
This is done to evaluate the candidate’s ability to communicate
freely and also other skills.

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ii) Psychometric Tests: For higher and top level jobs, candidates are
asked to answer a few questions which basically test their sharpness,
analytical ability, ability to handle stress, presence of mind etc. This
is done as Managers are required to work under stress all the
time and still maintain a cool head to make some vital decisions.

iii) Group Discussion: In campus recruitment students are involved


in a Group Discussion, where they will be given a topic on which
the group has to deliberate, discuss and arrive at a solution or a
decision which is accepted by the whole group.Along with the G D
they are also given a written aptitude test.

Finally a formal interview will be conducted to assess the overall


skills of the student.

Induction

New employees selected will be given a 13 day induction


and training program. They will be given information about the
company’s business, different departments etc. They will be
informed of their roles, duties and responsibilities. They will also
be informed about the HR policies and rules of the company.

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The new employees will be on probation for a period of 6
months. After this period the HR period along with the department
manager will review the performance of the employee. If the
employee’s performance is good and encouraging, the employee’s
services will be confirmed.

Compensation & Rewards

The employees are rewarded suitably with attractive pay


packages.

The salary of an employee includes basic pay. HRA, special


allowance, PF,ESI, Mediclaim etc.

Annual bonus will be given at the time of Diwali.

The employees and their dependents are also entitled for medical
treatment in recognised hospitals with cashless hospitalisation with
whom the company has tie-ups.

If a hospital is not recognised, the amount spent by the employee will


be reimbursed.

Along with these all the employees are given a card known as
‘Employee Discount card’ (EDC) through which they can buy any
product at Big Bazaar at a special discount of 20-30 %.

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Leaves and other rules

An employee during his probationary period is entitled for 7 days of


leave. A confirmed employee is entitled for 30 days of leave in a year.
There is only one type of leave the employees can take which is
known as All Purpose Leave (APL).

All the employees will be given identity cards which they have to
wear and also swipe while at the time of entering and leaving the
Store.

Performance Appraisal

The HR department conducts performance appraisal of all the


employees annually in the month of April.

Based on their performance increments will be given in their pay. In


addition to this if an employee achieves or exceeds the target given to
along with their team members will be provided with attractive cash
and other incentives.

Training & Development

Future group has its own training division for all its employees,
known as ‘Future Learning & Development Limited’ (FLDL). All the
employees are given training for 20 days in a year spread over

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different periods.

‘Gurukul’ which is a part of FLDL gives training to all the employees


on various skills like team work, dedication discipline improving
customer service etc to make them more knowledgeable and
productive.

Retention Strategy

We strive to foster a feeling of well-being in our


employees through care and respect, we have several
structured processes including employee mentoring
and grievance management programmes which are
intended to facilitate a friendly and cohesive
organisation culture. Off-site activities are encouraged
to improve inter-personal relationship. We also
acknowledge the efforts exerted by our employees by
organisation an annual celebration called ‘Pantaloon
Day’ where we recognize employees who have shown
exceptional talent, sincerity and dedication. We have
implemented an employee suggesstion programme
called ‘Prerna’ wherein the employee can give their

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suggestions. Every quarter the best suggesstion
received per zone per format is awarded prize called
“Golden Cap”.

Internal controls and Risk Management

The company uses the services of Ernst & Young for


process audit and risk management and the scope of
their work covers all the company’s formats i.e.
Pantaloons, Big Bazaar, Food Bazaar and Factory
Outlet.
The objectives are to:

• Gain an understanding of the various Business


Processes
• Identify the strengths and weaknesses in the existing
systems and procedures.
• Review use of technology in the function
• Identify key business process risks and review the
adequacy of the controls and mitigate them.

• Test the effectiveness of controls the most significant


risks and provide recommendations to improve
controls.

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• Identify potential areas for improving process
efficiency

• Broadly develop on improvement portfolio and raise


the level of awareness of how business is impacted by
inadequately controlled risks inherent in the business
process.

Internal audit of our each store is also undertaken


by an independent audit firm on monthly/quarterly
basis.

WHAT MOTIVATES EMPLOYEES?

The main issue that every manager talks about relating to his
employee is, that he might have better-motivated employee. In big
bazaar the scenario is different. Here employees are motivated
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through various ways and some of the ways are discussed below.

• Feeling “in” on things.


• Good wages.
• Good working conditions
• Job security
• Full appreciation of work that is done
• Tactful disciplining
• Employer loyalty to employees
• Interesting work
• Promotion and growth in the organization

The above-discussed methods can be related to various motivation


theories and the implication of such theory can be found in the
success of the ways that big bazaar use. Some of the theories of
motivation are Maslow’s need hierarchy theory, Bureaucracy and Two
Factor theory.

Maslow’s says that human beings are motivated to satisfy their needs.
These needs can be classified under various heads such as :

• Physiological needs, Safety needs. Love needs, Ego needs, and

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Self-actualization needs.
• Physiological needs - basic needs like hunger and thirst.
• Safety needs - security of all kinds.
• Love needs - need to relate closely to others.
• Ego needs - need for status and recognition.
• Self-actualization needs - relate to achieving one’s potential.

The motivation activities which can be classified within the maslow’s


theory are:-

Good wages.

Job security.

Appreciation of the employee for the work done.

Beside the maslow’s theory the motivation activities can be classified


on the basis of Two Factor model and the bureaucracy theory.

Two factor theory is based on two factors:

1. Those factors that led to extreme dissatisfaction with the jobs.

2. Those factors that led to extreme satisfaction with the job.

Factors giving rise to satisfaction he called motivators. Those giving

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rise to dissatisfaction he called hygiene factors.

Eliminating the causes of dissatisfaction (through hygiene factors)


would not result in a state of satisfaction. Satisfaction (and
motivation) would occur only as a result of the use of motivators.

In the motivating activities of big bazaar the good working condition


is the factor that lead to extreme satisfaction. The employee loyalty
toward the employee is related to the bureaucracy relation and the
interesting work is related to the behavioral theory.

WHAT MOTIVATES EMPLOYEES?

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Rank

Feeling “in” on things 8

Good wages 1

Good working conditions 4

Job security 2

Full appreciation of work that is done 5

Tactful disciplining 9

Employer loyalty to employees 7

Interesting work 3

Promotion and growth in the organization 6

Work Culture at Big Bazaar

At Pantaloon Retail, Empowerment is what you acquire and

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Freedom at Work is what you get. We believe our most valuable
assets are our People. Young in spirit, adventurous in action, with an
average age of 27 years, our skilled & qualified professionals
work in an environment where change is the only constant.

Powered by the desire to create path-breaking practices and held


together by values, work in this people intensive industry is driven by
softer issues. In our world, making a difference to Customers’ lives is
a Passion and performance is the key that makes it possible. Out of
the Box thinking has become a way of life at Pantaloon Retail and
living with the change, a habit. Leadership is a value that is followed
by one and all at Pantaloon Retail. Leadership is the quality that
motivates us to never stop learning, stretching to reach the next
challenge, knowing that we will be rewarded along the way. In the
quest of creating an Indian model of retailing, Pantaloon Retail has
taken initiatives to launch many retail formats that have come to
serve as a benchmark in the industry. Believing in leadership has
given us the optimism to change and be successful at it. We do not
predict the future, but create it.

At Pantaloon Retail you will get an opportunity to handle multiple


responsibilities, and therein, the grooming to play a larger role in
the future. Work is a unique mix of preserving our core Indian values
and yet providing customers with a service, on par with

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international standards

At Pantaloon you will work with some of the brightest people from
different spheres of industry. We believe it’s a place where you can
live your dreams and pursue a career that reflects your skills and
passions.

Measurement of Customer
Satisfaction
We have devised a model called CEM- Customer Experience
Management Model to measure customer satisfaction in our stores.
The Customer Experience Management Model focusses on the
customer’s experience at every touch point in the store ranging from

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their first impression of the store, to their experience at the trial
rooms, toilets, with our staff through various processes such as billing
and exchanges. We have hired a research agency called MACRO-
Market Analysis and Consumer Research

Organisation. This agency sends people who are called ‘Mystery


Shoppers’ to visit the stores and then their experience is documented
on a feedback form, which is then sent to us. Based on the feedback
formed analysis is done and the stores are given scores. This allows us
to track performance on customer expectation at overall, format and
store levels, determine critical improvement areas are all levels and
also identify opportunities that we can leverage upon.

Besides, we have also started an in-house initiative called ‘Pragati’


whereby one person from the head office operations team visits the
stores and observes the stores with respect to certain pre-parameters
like store exteriors, baggage window, customer service, store
ambience etc. This activity is done on a quarterly basis and three best
stores under each format are announced. This encourages the stores to
improve the efficiency of their store operations.

SWOT Analysis

Strengths

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• Better understanding of customers helping the company to serve
them better.

• Vast range of products under one roof helping in attracting


customer and their family to shop together and enjoy the
experience.

• Benefit of early entry into the retail industry.

• Diversified business operating all over India in various retail


formats.

• Ability to get products from customers at discounted price due


to the scale of business.

Weaknesses

• High cost of operation due to large fixed costs.

• Very thin margin.

• High attrition rate of employees.

Opportunities

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• Lot of potential in the rural market.

• Can enter into production of various products due to its in depth


understanding of customers’ tastes and preferences.

• Can expand the business in smaller cities as there is a lot of


opportunity.

Threats

• High business risk involved.

• Lot of competitors coming up to tap the market potential.

• Margin of business reducing all the time.

CONCLUSION
Big Bazaar is undoubtedly the number one retailer in India. It

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has built a very emotional and cordial relationship with its customers.
It is also very intending to build long-term relationship with all its
stakeholders, which is very essential for a successful business venture.
It is observed that the organisation hierarchy is professional as all
the departmental Managers directly report to the Store Manager who
in turn reports to the Zonal Head. Big Bazaar, with 25 years of
experience in the field of weaving fabrics, is the leading Apparels and
fashion design Fabric Company.

There exist a healthy and positive relationship between employees


and managers.The employees accept their responsibilities
wholeheartedly, accept that it is their responsibility to carry out a
part of the activities of the company and they will be held
accountable for the quality of their work. It is found that more than
60% of employees are of the age group of 20-35. From this it
reveals that company is having young and energetic workforce
who are very creative, enthusiastic and also very determined to grow
in their career and in turn helping the company to grow. Working
environment is good and also the various facilities provided
helps in motivating the employees. The company is reaching out to
all the sections of the society as it is creating a hypermarket
where not only the rich people shop but also the middle and the lower
class customers come to enjoy the whole shopping experience.

REFERENCES

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• http://www.pantaloon.com/
• http://en.wikipedia.org/wiki/Pantaloon_Retail_India
• www.scribd.com
• www.google.com

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